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Huntington Bancshares 8-K/A Report, Financial Results (Apr 19, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 19, 2024
Period End
April 19, 2024
In the record · 2016–202610-K1110-Q338-K254

HBAN filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 254 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Aug ’16Aug ’16
  2. Leadership change8-K · May ’22May ’22
  3. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K/A filed April 19, 2024. Cited figures are marked; the original filing is the authoritative source.

Huntington Bancshares Incorporated reported net income attributable to Huntington of $419 milliona, or $0.26 per diluted common share, for the first quarter of 2024, up $176 million (or $0.11) from the prior quarter and down $183 million (or $0.13) from the year-ago quarter.

Excluding after-tax Notable Items, primarily the FDIC Deposit Insurance Fund special assessment, adjusted earnings per common share were $0.28b. Return on average assets was 0.89%, return on average common equity was 9.2%, and return on average tangible common equity was 14.2%. Net interest margin declined to 3.01% from 3.40% a year earlier, and net interest income was $1,287 million, down 9% year over year, reflecting higher cost of funds.

Balance sheet growth continued. Ending total deposits rose $2.0 billionc, or 1%, from December 31, 2023 and $7.9 billion, or 5%, from a year earlier, and average total loans and leases were $121.9 billion. Noninterest income rose 15% sequentially to $467 million, though this was largely due to a $74 million mark-to-market loss on pay-fixed swaptions in the prior quarter.

Credit quality was stable: net charge-offs were 0.30% of average loans and leases, the nonperforming asset ratio was 0.60%, and the allowance for credit losses was $2.4 billiond, or 1.97% of total loans and leases. The CET1 risk-based capital ratio was an estimated 10.2%, and the tangible common equity ratio was 6.0%. Management said its outlook for the year is unchanged and that it expects loan growth to accelerate over the course of the year.

The filing is an amendment (Form 8-K/A) that corrects Item 2.02 and 9.01 tags in EDGAR and makes no changes to the disclosures. The results are furnished under Item 2.02, with the earnings news release (Exhibit 99.1) and Quarterly Financial Supplement (Exhibit 99.2) incorporated by reference.

02—Key points

Key Highlights

  1. Net income attributable to Huntington was $419 million, or $0.26 per diluted common share, versus $243 million ($0.15) in the fourth quarter of 2023 and $602 million ($0.39) in the first quarter of 2023.
  2. Adjusted EPS was $0.28, excluding $0.02 per share of after-tax Notable Items, primarily the FDIC Deposit Insurance Fund special assessment ($25 million after tax).
  3. Net interest margin was 3.01%, down 39 basis points year over year, driven by higher cost of funds; net interest income was $1,287 million, down 9% from the year-ago quarter.
  4. Noninterest income was $467 million, up 15% from the prior quarter, which had a $74 million mark-to-market loss on pay-fixed swaptions.
  5. Ending total deposits were $153.2 billion, up 5% year over year, and average total loans and leases were $121.9 billion, up 1% year over year.
  6. Credit quality remained stable: net charge-offs were 0.30% of average loans and leases, the NPA ratio was 0.60%, and ACL was 1.97% of total loans and leases.
  7. Capital remained stable, with an estimated CET1 ratio of 10.2% and a tangible common equity ratio of 6.0%.

03—Questions

Frequently Asked Questions

  1. How did Huntington's first-quarter 2024 earnings compare with prior periods?

    Net income attributable to Huntington was $419 million, or $0.26 per diluted share. That was up from $243 million ($0.15) in the fourth quarter of 2023 and down from $602 million ($0.39) in the first quarter of 2023. Adjusted EPS, excluding Notable Items, was $0.28.

  2. What drove the decline in net interest income and margin?

    Management attributed the lower net interest margin, which fell to 3.01% from 3.40% a year earlier, primarily to higher cost of funds in a higher interest rate environment and an increase in deposits held at the Federal Reserve Bank. These effects were partly offset by higher loan and lease and investment security yields.

  3. Why did noninterest income rise in the quarter?

    Noninterest income increased $62 million, or 15%, to $467 million from the prior quarter, mainly because the fourth quarter included a $74 million unfavorable mark-to-market on the termination of the pay-fixed swaptions program. Capital markets and advisory fees declined $13 million, or 19%, sequentially.

  4. How is credit quality trending?

    Net charge-offs were $92 million, or 0.30% of average loans and leases, compared with 0.19% a year earlier and 0.31% in the prior quarter. Nonaccrual loans rose to $716 million from $667 million in the prior quarter, driven by commercial nonaccrual loans, and the ACL was $2.4 billion, or 1.97% of total loans and leases.

  5. What is management's outlook?

    Management said its outlook for the year remains unchanged and that it expects accelerating loan growth over the course of the year as new teams and expanded markets develop opportunities. It said it expects this growth momentum to carry through the year and into 2025.

04—Continue

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