01—Abstract
Summary
Summary of the 8-K filed September 9, 2024. Cited figures are marked; the original filing is the authoritative source.
Huntington Bancshares Incorporated furnished presentation slides (Exhibit 99.1) for its participation at the 2024 Barclays Global Financial Services Conference on September 9, 2024, where CFO Zach Wasserman and Brant Standridge, President of Consumer and Regional Banking, presented.
The slides are furnished under Item 7.01 and are not deemed filed for Exchange Act Section 18 purposes. The presentation's key messages center on delivering high-quality loan and deposit growth, expanding net interest income through a dynamic hedging strategy and a down beta action plan, and expanding into the Carolinas and other new geographies and verticals. Management reported that quarter-to-date average loans were up $2.2 billiona in 3Q24 (with cumulative average growth of 4.1% for total loans excluding CRE shown on the slide), that cumulative deposit growth since 1Q23 was roughly $9 billion or more, and that it expects accelerated loan growth in 4Q24 versus 3Q24.
Net interest income was $1.325 billionb in 2Q24 and the company expects NII growth and to maintain its FY24 guidance range. On credit, the company highlighted a consumer book that is 44% of total loans with a roughly 770 weighted average FICO and a commercial book of 56%, with CRE at 9.6% of total loans supported by a 4.5% reserve. The company expects roughly a 40% reduction in asset sensitivity by 4Q24 and more than 50% by 2Q25, and plans to provide a comprehensive strategy update at an Investor Day on February 6, 2025.
02—Key points
Key Highlights
- Net interest income of $1,325 million in 2Q24, with management expecting NII growth and maintaining its FY24 guidance range
- Quarter-to-date 3Q24 average loans up $2.2 billion, with management expecting accelerated loan growth in 4Q24 versus 3Q24
- Cumulative deposit growth of roughly $9 billion or more since 1Q23, with $90 billion of liquid money market and interest checking deposits
- Down beta action plan targets ~40% reduction in asset sensitivity by 4Q24 and more than 50% by 2Q25; company achieved 53% cumulative down beta in the 2000-04 rate cut cycle
- Credit profile: consumer loans 44% of total with ~770 weighted average FICO and over 95% secured; CRE at 9.6% of total loans with a 4.5% reserve
- Growth initiatives in the Carolinas, with over 120 new Regional and Middle Market Banking relationships added YTD and a planned full-franchise expansion in 2025+
- Investor Day scheduled for February 6, 2025 to provide a comprehensive strategy update
03—Questions
Frequently Asked Questions
What did Huntington present at the Barclays conference?
Huntington's CFO Zach Wasserman and Brant Standridge, President of Consumer and Regional Banking, presented slides covering loan and deposit growth, net interest income outlook, asset quality, Carolina expansion, and the down beta action plan.
What is the company's net interest income outlook?
The company expects NII growth and to maintain its FY24 guidance range, supported by expanding earning assets, dynamic hedging strategies, and a down beta action plan. It expects roughly a 40% reduction in asset sensitivity by 4Q24 and more than 50% by 2Q25.
How is loan and deposit growth trending?
Quarter-to-date 3Q24 average loans rose $2.2 billion, with C&I and consumer balances higher and CRE down $0.4 billion. Cumulative deposit growth since 1Q23 is about $9 billion or more, and the company expects accelerated loan growth in 4Q24 versus 3Q24.
How does the company describe its credit quality?
Consumer loans are 44% of total loans with prime and super-prime focus and about 770 weighted average FICO, and over 95% of that book is secured. CRE is 9.6% of total loans, which the company describes as the lowest quartile, with a 4.5% reserve. The company targets a through-the-cycle net charge-off range of 25 to 45 basis points.
When will Huntington provide a further strategy update?
The company plans to provide a comprehensive strategy update at an Investor Day on February 6, 2025.
04—Continue