Huntington Bancshares Loan Growth Up

Core Insights - Huntington Bancshares reported Q2 2025 earnings per share (EPS) of $0.34, with average loans and deposits increasing by $2.3 billion (1.8%) and $1.8 billion (1.1%) respectively, leading to an upward revision of full-year loan growth guidance to 6% to 8% [1] Financial Performance - On an adjusted basis, pre-provision net revenue (PPNR) grew 15% year over year, while expense growth for 2025 is forecasted at 5% to 6%, primarily due to higher incentive compensation [2] - Operating leverage is more positive than initially budgeted, enhancing tangible book value and return on equity [3] Strategic Acquisition - The acquisition of Veritex will add over 30 branches to Huntington's Texas operations, significantly expanding its presence in the Dallas-Fort Worth and Houston areas, making Texas the company's third-largest deposit market post-acquisition [4][5] Credit and Funding Profile - Net charge-offs decreased to 20 basis points, with the allowance for credit losses rising to 1.86%, indicating a cautious risk posture [6] - Adjusted CET1 capital reached 9%, at the lower end of the targeted operating range, with strong liquidity reflected by 2 times coverage of uninsured deposits [7] Future Outlook - Management has raised the full-year loan growth outlook to 6% to 8%, while net charge-off guidance for 2025 has been lowered to 20 to 30 basis points [8] - Expectations for Q3 2025 include approximately 1% sequential loan growth and stable net interest income, with expenses projected at about $1.2 billion [8]