Huntington Bancshares Incorporated Reports 2025 First-Quarter Earnings

Rhea-AI Summary

Huntington Bancshares (HBAN) reported strong Q1 2025 results with net income of $527 million, or $0.34 EPS, marking a 26% increase year-over-year. Key performance highlights include:

- Net interest income grew 11% year-over-year and 2% quarter-over-quarter
- Average total loans increased 7% to $130.9 billion year-over-year
- Average deposits rose 7% to reach $10.9 billion year-over-year
- Noninterest income grew 6% year-over-year despite 12% quarterly decline

The bank demonstrated solid credit quality with net charge-offs at 0.26% and a nonperforming asset ratio of 0.61%. The Board approved a $1 billion share repurchase authorization. Capital position remained strong with CET1 ratio at 10.6% and tangible book value per share increasing 13% year-over-year to $8.80.

Positive

• Net income increased 26% year-over-year to $527 million
• Net interest income grew 11% year-over-year
• Average loans increased 7% year-over-year to $130.9 billion
• Average deposits grew 7% year-over-year
• Board approved $1 billion share repurchase authorization
• Tangible book value per share increased 13% year-over-year
• Improved credit metrics with lower net charge-offs

Negative

• Noninterest income decreased 12% quarter-over-quarter
• Net income decreased $3 million from prior quarter
• Deposit costs remain elevated at 2.03%

Insights

Banking Financial Analyst

Huntington delivers strong Q1 with 26% YoY profit growth, expanding loans/deposits by 7%, improved credit metrics, and $1B buyback authorization.

Huntington Bancshares (HBAN) reported exceptionally strong Q1 2025 results that demonstrate robust fundamental performance across key metrics. The bank posted EPS of $0.34, reflecting substantial year-over-year profit growth of 26%, though flat sequentially.

The earnings quality is high, driven by fundamental business growth rather than one-time items. Net interest income expanded by 11% year-over-year, considerably outpacing peer averages, while deposit costs declined 13 basis points sequentially to 2.03%, showing improving spread management.

Balance sheet growth is impressive and balanced. Average loans increased 7% annually, with commercial loans growing 8% and consumer loans up 6%. More importantly, this was matched by similar deposit growth of 7%, creating a healthy funding equilibrium.

Credit quality metrics are trending positively, with net charge-offs of 0.26% improving 4 basis points from last quarter, and the nonperforming asset ratio declining to 0.61%. These figures are consistent with Huntington's stated "moderate-to-low risk appetite" and position them favorably versus peers.

Capital position continues to strengthen with CET1 rising to 10.6% and tangible book value increasing 13% year-over-year to $8.80 per share. The newly authorized $1 billion share repurchase program reflects management's confidence in ongoing performance and commitment to shareholder returns.

The strategic expansion into North Carolina, South Carolina, and Texas markets appears to be yielding tangible results, creating additional growth vectors beyond traditional markets. This geographic diversification reduces single-market concentration risk while capturing growth opportunities in faster-growing regions.

The only modest concern is the 12% sequential decline in noninterest income, though it remains up 6% year-over-year. This quarterly variability warrants monitoring but doesn't detract from the overall strong performance profile.

Exceptional Q1 Results Highlighted by Growth in Loans and Deposits, Expanded Net Interest Income, and Continued Strong Performance in Fee Revenue, Driving Robust Year-Over-Year Profit Growth

2025 First-Quarter Highlights:

• Earnings per common share (EPS) for the quarter were $0.34, unchanged from the prior quarter, and $0.08 higher than the year-ago quarter. Excluding the after-tax impact of Notable Items, EPS was higher by $0.06 from the year-ago quarter.
• Net interest income increased $31 million, or 2%, from the prior quarter, and $139 million, or 11%, from the year-ago quarter.
• Total deposit costs were 2.03%, down 13 basis points from the prior quarter.
• Noninterest income decreased $65 million, or 12%, from the prior quarter, to $494 million. From the year-ago quarter, noninterest income increased $27 million, or 6%.
• Average total loans and leases increased $2.7 billion, or 2%, from the prior quarter to $130.9 billion, and increased $8.9 billion, or 7%, from the year-ago quarter.
  • Average commercial loans grew $2.2 billion or 3% from the prior quarter and $5.8 billion or 8% from the year-ago quarter.
  • Average consumer loans grew $491 million or 1% from the prior quarter and $3.1 billion or 6% from the year-ago quarter.
• Average total deposits increased $2.2 billion, or 1%, from the prior quarter and $10.9 billion, or 7%, from the year-ago quarter.
• Net charge-offs of 0.26% of average total loans and leases for the quarter, 4 basis points lower than the prior quarter.
• Nonperforming asset ratio of 0.61% at quarter end, 2 basis points lower than the prior quarter.
• Allowance for credit losses (ACL) of $2.5 billion, or 1.87% of total loans and leases, at quarter end, an increase of $32 million from the prior quarter.
• Common Equity Tier 1 (CET1) risk-based capital ratio was 10.6%, at March 31, 2025, up from 10.5% in the prior quarter. Adjusted Common Equity Tier 1, including the effect of AOCI, was 8.9%, up from 8.7% in the prior quarter.
• Tangible common equity (TCE) ratio of 6.3%, up from 6.1% in the prior quarter and 6.0% from a year ago.
• Tangible book value per share of $8.80, up $0.47, or 6%, from the prior quarter and up $1.03, or 13%, from a year ago.
• The Board of Directors approved a $1 billion share repurchase authorization.

COLUMBUS, Ohio, April 17, 2025 /PRNewswire/ -- Huntington Bancshares Incorporated (Nasdaq: HBAN) reported net income for the 2025 first quarter of $527 million, or $0.34 per common share, a decrease of $3 million from the prior quarter, and an increase of $108 million, or 26%, from the year-ago quarter.  

Return on average assets was 1.04%, return on average common equity was 11.3%, and return on average tangible common equity (ROTCE) was 16.7%.

CEO Commentary:

"Our first quarter results were highlighted by continued profit growth driven by increased loans and deposits, expanded net interest margin, growth of fee revenues, and rigorous expense management," said Steve Steinour, chairman, president, and CEO. "Our outlook for the year remains positive as our organic growth continues to significantly outpace our peer group driven by both our existing businesses and new initiatives. Our teams are executing exceptionally well as we manage overall funding costs lower and drive fee revenues higher. While we closely monitor the external environment, we are very well positioned to operate across a range of potential economic scenarios."

"We have continued to invest in new revenue-producing opportunities and have expanded our capabilities in the commercial and regional bank. These investments are delivering results, evidenced by robust loans and deposits across North Carolina, South Carolina and Texas regions, new commercial specialty banking areas, as well as fee businesses."

"Credit quality performed very well, with improved net-charge offs compared to the previous quarter and 2024 overall, reflecting our credit management approach in line with our aggregate moderate-to-low risk appetite. This is a competitive advantage and we are confident in our ability to outperform through-the-cycle."

"We are operating from a position of strength. Over many years Huntington has maintained a disciplined approach to risk, which has driven our robust capital and liquidity metrics and has resulted in top quartile credit performance. Huntington has demonstrated our ability to execute and capitalize on disruptions in the market, and we believe we are very well positioned to manage through the evolving economic outlook."

The first quarter 2025 earnings materials, including the detailed earnings press release, quarterly financial supplement, and conference call slide presentation, are available on the Investor Relations section of Huntington's website, http://huntington.com/ In addition, the financial results will be furnished on a Form 8-K that will be available on the Securities and Exchange Commission website at www.sec.gov.

Conference Call / Webcast Information

Huntington's senior management will host an earnings conference call on April 17, 2025, at 11:00 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 #13752707. 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 April 25, 2025 at (877) 660-6853 or (201) 612-7415; conference ID #13752707.

Please see the 2025 First 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 $210 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 968 branches in 13 states, with certain businesses operating in extended geographies. Visit Huntington.com for more information.

 

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SOURCE Huntington Bancshares Incorporated

FAQ

What was Huntington Bancshares (HBAN) earnings per share in Q1 2025?

HBAN reported earnings per share of $0.34 in Q1 2025, unchanged from the previous quarter and $0.08 higher than the year-ago quarter.

How much did Huntington's (HBAN) loan portfolio grow in Q1 2025?

Average total loans increased by $2.7 billion (2%) quarter-over-quarter to $130.9 billion, and grew $8.9 billion (7%) year-over-year.

What is the size of HBAN's new share repurchase authorization?

Huntington's Board of Directors approved a $1 billion share repurchase authorization.

How did Huntington's (HBAN) deposit costs perform in Q1 2025?

Total deposit costs were 2.03%, decreasing by 13 basis points from the previous quarter.

What was Huntington's (HBAN) credit quality performance in Q1 2025?

Net charge-offs were 0.26% of average total loans, improving by 4 basis points from the prior quarter, with a nonperforming asset ratio of 0.61%.