01—Abstract
Summary
Summary of the 8-K filed October 17, 2024. Cited figures are marked; the original filing is the authoritative source.
Huntington Bancshares Incorporated reported net income attributable to Huntington of $517 milliona, or $0.33 per common share, for the third quarter ended September 30, 2024, up $43 million, or $0.03, from the prior quarter and down $30 million, or $0.02, from the year-ago quarter.
Noninterest income rose $32 millionb, or 7%, sequentially to $523 million, and net interest income rose $39 million, or 3%, from the prior quarter, though net interest margin was relatively stable at 2.98% versus 2.99% in the second quarter. Management attributed the results to sequential revenue and profit expansion, accelerated loan growth and sustained deposit gathering, and said it anticipates accelerated loan growth to continue in the fourth quarter. Credit quality metrics were mixed but broadly stable.
Net charge-offs were 0.30% of average loans and leases, the nonperforming asset ratio was 0.62%, and the allowance for credit losses was $2.4 billionc, or 1.93% of total loans and leases. Nonperforming assets rose to $784 million from $634 million a year earlier, while the provision for credit losses was $106 million. Capital and liquidity remained strong.
The CET1 risk-based capital ratio was an estimated 10.4%, unchanged from the prior quarter, while the tangible common equity ratio rose to 6.4% from 6.0%. Tangible book value per share increased to $8.65d from $7.89 in the second quarter and $7.12 a year earlier. Cash, cash equivalents and available contingent borrowing capacity totaled $95 billion, representing 195% of estimated uninsured deposits.
02—Key points
Key Highlights
- Net income of $517 million, or $0.33 per diluted share, versus $474 million ($0.30) in Q2 2024 and $547 million ($0.35) in Q3 2023.
- Noninterest income increased 7% sequentially to $523 million, with capital markets and advisory fees of $78 million and mortgage banking income of $38 million.
- Average total loans and leases rose $1.1 billion, or 1%, sequentially to $124.5 billion; ending total deposits rose $4.0 billion, or 3%, to $158.4 billion on a period-end basis.
- Tangible book value per share of $8.65, up $0.76, or 10%, from the prior quarter and $1.53, or 21%, from a year ago.
- Net interest margin of 2.98%, down 22 basis points from the year-ago quarter but stable versus 2.99% in the prior quarter.
- Nonperforming asset ratio of 0.62% and net charge-offs of 0.30% of average loans, with allowance for credit losses at 1.93% of total loans and leases.
- Management expects accelerated loan growth to continue in the fourth quarter, with loan pipelines described as robust.
03—Questions
Frequently Asked Questions
How did Huntington's third-quarter 2024 earnings compare with prior periods?
Net income attributable to Huntington was $517 million, or $0.33 per diluted share. This was up $43 million, or $0.03, from the second quarter 2024 and down $30 million, or $0.02, from the third quarter 2023.
What drove the change in net interest income and margin?
Net interest income increased $39 million, or 3%, from the prior quarter, driven by higher average earning assets. The net interest margin was 2.98%, relatively stable versus 2.99% in the second quarter, but down 22 basis points year over year, primarily due to higher cost of funds in the higher-rate environment and higher balances held at the Federal Reserve Bank.
How did credit quality trend?
Net charge-offs were 0.30% of average loans and leases, up from 0.24% a year earlier. Nonperforming assets were $784 million, or 0.62% of loans, OREO and other NPAs, compared with $634 million, or 0.52%, a year ago. The allowance for credit losses was $2.4 billion, or 1.93% of total loans and leases.
How strong is Huntington's capital and liquidity position?
The estimated CET1 risk-based capital ratio was 10.4%, unchanged from the prior quarter, and the tangible common equity ratio improved to 6.4% from 6.0%. Cash, cash equivalents and available contingent borrowing capacity totaled $95 billion, representing 195% of estimated uninsured deposits.
What is management's outlook?
Management stated it anticipates accelerated loan growth to continue in the fourth quarter, supported by core businesses and new initiatives that are tracking above plan. It said loan pipelines are robust and that this momentum establishes a foundation for growing revenue and expanded profitability heading into 2025.
04—Continue