Huntington Shares Up 23.2% in a Year: Should You Hold or Fold Now?

Core Insights - Huntington Bancshares (HBAN) shares have increased by 23.2% over the past year, outperforming the industry growth of 19.7% [1][7] - The company's net interest income (NII) and net interest margin (NIM) are on the rise, with NII expected to grow by 8-9% from $5.34 billion in 2024 [5] - Total deposits have shown a five-year CAGR of 14.6%, with management projecting average deposit growth of 4-6% from $155.1 billion in 2024 [6] Performance Metrics - NII recorded a four-year CAGR of 10.5% from 2019 to 2024, while NIM improved from 2.84% in 2021 to 3.25% in 2022 [5] - Total loan balance saw a CAGR of 11.5% over the same five-year period, continuing into the first half of 2025 [6] - As of June 30, 2025, Huntington's liquidity totaled $10.9 billion, with a long-term debt of $18 billion and only $576 million in short-term borrowings [9] Strategic Initiatives - Huntington has made several strategic acquisitions, including the planned acquisition of Veritex Holdings, which aims to enhance its presence in Texas [8] - The company has also acquired Capstone Partners and Torana to bolster its capital markets and digital capabilities [8] Challenges - Non-interest expenses have seen a CAGR of 10.9% over the last five years, with expectations for adjusted non-interest expenses to grow by 5-6% in 2025 from $4.51 billion in 2024 [10] - Commercial loans represent 57% of Huntington's total loan portfolio, with 73.7% of non-performing assets tied to these loans, indicating a high concentration risk [11] Valuation Perspective - HBAN stock trades at a forward P/E ratio of 11.49X, higher than the industry average of 11.04X, suggesting a premium valuation [13] - Prospective investors may consider waiting for a more attractive entry point due to the current valuation [15]