Huntington Bancshares Incorporated Reports 2024 Second-Quarter Earnings

Analysts: Tim Sedabres (timothy.sedabres@huntington.com), 952.745.2766

Media: Tracy Pesho (corpmedia@huntington.com), 216.276.3301

Q2 Results Highlighted by Expansion of Net Interest Income and Fee Revenues, Accelerating Loan and Deposit Growth, and Strong Credit Quality

2024 Second-Quarter Highlights:

• Earnings per common share (EPS) for the quarter were $0.30, higher by $0.04 from the prior quarter, and lower by $0.05 from the year-ago quarter.
• Net interest income increased $25 million, or 2%, from the prior quarter, and decreased $34 million, or 3%, from the year-ago quarter.
• Noninterest income increased $24 million, or 5%, from the prior quarter, to $491 million.
• Cash and cash equivalents and available contingent borrowing capacity totaled $95 billion at June 30, 2024, and represented 204% of estimated uninsured deposits.
• Average total deposits increased $2.9 billion, or 2%, from the prior quarter and $8.0 billion, or 6%, from the year-ago quarter.
  • Ending total deposits increased $1.1 billion, or 1%, from the prior quarter and $6.3 billion, or 4%, from the year-ago quarter.
• Average total loans and leases increased $1.4 billion, or 1%, from the prior quarter to $123.4 billion, and increased $2.0 billion, or 2%, from the year-ago quarter.
  • Average consumer loans increased $757 million and average commercial loans and leases increased $689 million from the prior quarter.
  • Ending total loans increased $1.7 billion, or 1% from the prior quarter and $3.2 billion, or 3%, from the year-ago quarter.
• Net charge-offs of 29% of average total loans and leases for the quarter.
• Nonperforming asset ratio of 0.63% at quarter end.
• Allowance for credit losses (ACL) of $2.4 billion, or 95% of total loans and leases, at quarter end.
• Common Equity Tier 1 (CET1) risk-based capital ratio was 4%, at June 30, 2024, up from 10.2% in the prior quarter. Adjusted Common Equity Tier 1, including the effect of AOCI, was 8.6%, up from 8.5% in the prior quarter.
• Tangible common equity (TCE) ratio of 0%, stable from the prior quarter and up from 5.8% a year ago.
• Tangible book value per share of $7.89, up $0.12 or 2% from the prior quarter and $0.56 or 8% from a year ago.
• Huntington completed a $478 million Credit Linked Note ("CLN") transaction during the second quarter related to an approximately $4 billion reference pool of on-balance sheet prime indirect auto loans as part of the company's capital optimization strategy. The transaction reduced risk-weighted assets by approximately $3.0 billion, representing a 76% reduction in the risk-weighting on the selected pool of assets.
• Huntington was recognized by Freddie Mac as a 2024 Home Possible RISE (Recognizing Individuals for Sustained Excellence) Award Winner for excellence with Freddie Mac's affordable lending solutions. 

COLUMBUS, Ohio – Huntington Bancshares Incorporated (Nasdaq: HBAN) reported net income for the 2024 second quarter of $474 million, or $0.30 per common share, an increase of $55 million, or $0.04, from the prior quarter, and a decrease of $85 million, or $0.05, from the year-ago quarter.  

Return on average assets was 0.98%, return on average common equity was 10.4%, and return on average tangible common equity (ROTCE) was 16.1%.

CEO Commentary:

“Our second quarter results were highlighted by an expansion in revenue from the prior quarter, including in both net interest income and noninterest income,” said Steve Steinour, chairman, president, and CEO. “We delivered accelerated loan growth in the quarter and continued our trend of increasing deposit balances.

"Huntington is operating from a position of strength given the disciplined management actions the company has sustained over many years. Our liquidity and capital profile is robust and supports our continued focus on executing organic growth initiatives. This proactive approach allows us to support our clients and expand our banking relationships. Over the past three quarters we have invested considerably into numerous new revenue producing opportunities, and these investments are delivering organic growth trends."  

"Credit quality continued to perform very well in the quarter and we were pleased with the recent CCAR stress test results which were highlighted by our top quartile performance for stressed credit losses. For nearly a decade Huntington has maintained CCAR credit loss estimates in the top quartile compared to peers with low relative loss estimates. This demonstrates the benefit of our consistent management of our aggregate moderate-to-low risk appetite." 

"We are focused on delivering on our long-term strategic goals. Our solid capital levels and robust liquidity profile enable us to continue to deliver accelerated loan growth.  This outlook is supported by both our existing and new teams across the company and is expected to drive higher revenues over the second half of the year, with continued momentum into 2025 and beyond."

Conference Call / Webcast Information

Huntington’s senior management will host an earnings conference call on July 19, 2024, at 8:00 a.m. (Eastern Time). The call may be accessed via a live Internet webcast at the Investor Relations section of Huntington’s website, www.huntington.com, or through a dial-in telephone number at (877) 407-8029; Conference ID #13747594. Slides will be available in the Investor Relations section of Huntington’s website about an hour prior to the call. A replay of the webcast will be archived in the Investor Relations section of Huntington’s website. A telephone replay will be available approximately two hours after the completion of the call through July 26, 2024 at (877) 660-6853 or (201) 612-7415; conference ID #13747594.

Please see the 2024 Second Quarter Quarterly Financial Supplement for additional detailed financial performance metrics. This document can be found on the Investor Relations section of Huntington's website, http://www.huntington.com.

About Huntington

Huntington Bancshares Incorporated is a $196 billion asset regional bank holding company headquartered in Columbus, Ohio. Founded in 1866, The Huntington National Bank and its affiliates provide consumers, small and middle‐market businesses, corporations, municipalities, and other organizations with a comprehensive suite of banking, payments, wealth management, and risk management products and services. Huntington operates approximately 970 branches in 11 states, with certain businesses operating in extended geographies. Visit Huntington.com for more information.

Released July 19, 2024