Huntington Q2 Earnings Match Estimates, NII Rises Y/Y, Fee Income Down

Core Insights - Huntington Bancshares Incorporated (HBAN) reported second-quarter 2025 adjusted earnings per share (EPS) of 38 cents, matching the Zacks Consensus Estimate and up from 30 cents in the prior-year quarter [1][7] - The company experienced a $58 million decrease in pre-tax earnings due to securities repositioning, impacting EPS by 4 cents [1] Financial Performance - Net income attributable to common shareholders (GAAP basis) was $536 million, an increase from $474 million in the prior-year quarter [2] - Total quarterly revenues increased 10.8% year over year to $2.01 billion, surpassing the Zacks Consensus Estimate of $1.98 billion [3] - Net interest income (NII) rose 12% year over year to $1.48 billion, driven by higher average earning assets and a net interest margin (NIM) increase of 12 basis points to 3.11% [3][7] - Non-interest income decreased 4% year over year to $471 million, while non-interest expenses rose 7% to $1.19 billion, primarily due to higher personnel and marketing costs [4][7] Loans and Deposits - Average loans and leases increased 2% sequentially to $133.2 billion as of June 30, 2025 [5] - Average total deposits rose 1% to $163.4 billion [5] Credit Quality - Net charge-offs were $66 million, down from $90 million in the prior-year quarter, with a net charge-off ratio of 0.20%, down from 0.29% [6] - The allowance for credit losses increased 3.8% to $2.52 billion, while total non-performing assets rose 9.2% to $852 million [6] Capital Ratios - The common equity tier 1 risk-based capital ratio was 10.5%, up from 10.4% in the prior-year period [9] - The regulatory Tier 1 risk-based capital ratio decreased to 11.8% from 12.1% in the comparable period in 2024 [9] - The tangible common equity to tangible assets ratio increased to 6.6% from 6% in the prior-year quarter [9] Strategic Outlook - The company's inorganic expansion efforts are expected to bolster revenue growth in the near term, with a focus on enhancing commercial banking capabilities in key growth markets [10]