Huntington Bancshares Incorporated Reports 2025 Second-Quarter Earnings

Core Insights - Huntington Bancshares Incorporated reported a net income of $536 million for Q2 2025, reflecting a 2% increase from the previous quarter and a 13% increase year-over-year [2] - The company achieved a return on average assets of 1.04% and a return on average common equity of 11.0% [3] - The CEO highlighted the successful execution of the organic growth strategy, with significant customer acquisition and deepening relationships contributing to growth in net interest income and fee-based revenue [4] Financial Performance - Earnings per common share (EPS) remained at $0.34, with a $0.04 increase compared to the year-ago quarter [5] - Net interest income rose by $41 million (3%) from the prior quarter and by $155 million (12%) year-over-year [5] - Noninterest income decreased by $23 million (5%) from the prior quarter, but increased by $37 million (7%) when excluding certain losses [5] Loan and Deposit Growth - Average total loans and leases increased by $2.3 billion (2%) from the prior quarter and by $9.8 billion (8%) year-over-year, reaching $133.2 billion [5] - Average commercial loans grew by $1.6 billion (2%) from the prior quarter and by $6.7 billion (10%) year-over-year [5] - Average total deposits increased by $1.8 billion (1%) from the prior quarter and by $9.9 billion (6%) year-over-year [5] Credit Quality - Net charge-offs were 0.20% of average total loans and leases, a decrease of 6 basis points from the prior quarter [5] - The nonperforming asset ratio was 0.63%, which is 2 basis points higher than the prior quarter [5] - The allowance for credit losses (ACL) was $2.5 billion, or 1.86% of total loans and leases, reflecting a $37 million increase from the prior quarter [5] Capital Ratios - The Common Equity Tier 1 (CET1) risk-based capital ratio was 10.5%, slightly down from 10.6% in the prior quarter [5] - The Tangible Common Equity (TCE) ratio improved to 6.6%, up from 6.3% in the prior quarter [5] - Tangible book value per share increased by $0.33 (4%) from the prior quarter and by $1.24 (16%) year-over-year, reaching $9.13 [5] Strategic Initiatives - The announced combination with Veritex Holdings, Inc. is expected to accelerate Huntington's growth initiatives in the Texas market [5][6] - The company is focused on disciplined credit risk management, as evidenced by improved net charge-offs and stable levels of criticized and non-performing assets [6]