Huntington Bancshares Incorporated Reports 2025 Fourth-Quarter Earnings

Core Insights - Huntington Bancshares Incorporated reported a net income of $519 million for the fourth quarter of 2025, reflecting a decrease of 17% from the previous quarter and a 2% decrease from the same quarter last year, impacted by $130 million in acquisition-related expenses [2][4] - The company achieved a return on average assets of 0.93%, a return on average common equity of 8.9%, and a return on average tangible common equity of 12.7% [3] - The CEO highlighted strong execution and broad-based organic growth, with strategic advancements in commercial verticals, payments, wealth, and capital markets capabilities [4][6] Financial Performance - Earnings per common share (EPS) for the quarter was $0.30, down $0.11 from the prior quarter and $0.04 from the year-ago quarter; adjusted EPS was $0.37, down $0.03 from the prior quarter but up $0.03 from the year-ago quarter [5] - Net interest income increased by $86 million (6%) from the prior quarter and $197 million (14%) from the year-ago quarter [5] - Noninterest income decreased by $46 million (7%) from the prior quarter but increased by $23 million (4%) from the year-ago quarter [5] Loan and Deposit Growth - Average total loans and leases rose by $10.7 billion (8%) from the prior quarter and $18.4 billion (14%) from the year-ago quarter, influenced by the Veritex acquisition [5] - Average commercial loans grew by $9.5 billion (12%) from the prior quarter and $15.3 billion (21%) from the year-ago quarter [5] - Average total deposits increased by $8.3 billion (5%) from the prior quarter and $13.8 billion (9%) from the year-ago quarter, also reflecting the impact of the Veritex acquisition [5] Credit Quality - Net charge-offs were 0.24% of average total loans and leases, slightly higher than the prior quarter but lower than the year-ago quarter [5] - The nonperforming asset ratio was 0.63% at quarter end, up 3 basis points from the prior quarter [5] - The allowance for credit losses was $2.7 billion (1.83% of total loans and leases), an increase of $181 million from the prior quarter [5] Capital Ratios - The Common Equity Tier 1 (CET1) risk-based capital ratio was 10.4% at the end of December 2025, down from 10.6% in the prior quarter [5] - The tangible common equity (TCE) ratio improved to 7.1%, up from 6.8% in the prior quarter and 6.1% from a year ago [5] - Tangible book value per share increased to $9.89, reflecting a rise of $0.35 (4%) from the prior quarter and $1.56 (19%) from the year-ago quarter [5] Strategic Partnerships - Huntington closed its partnership with Veritex Holdings, Inc. on January 19, 2026, and is anticipating the closing of a partnership with Cadence Bank on February 1, 2026 [5][6] - The CEO emphasized that these partnerships will enhance growth in Texas and the South, with successful integration processes underway [6]