01—Abstract
Summary
Summary of the 8-K filed November 7, 2024. Cited figures are marked; the original filing is the authoritative source.
Huntington Bancshares Incorporated (HBAN) furnished presentation slides under Item 7.01 (Regulation FD Disclosure) for its participation at the 2024 BancAnalysts Association of Boston Conference on November 7, 2024, where Chief Financial Officer Zach Wasserman presented.
The filing states the slides are furnished, not filed, for purposes of Section 18 of the Exchange Act. The presentation highlights accelerated organic growth: 6.3% annualized loan growth (end of period), average deposit growth of 5.6% year over year, and a stated #1 position in loan and deposit growth versus peers for 3Q24. Net interest income was $1,364 milliona in 3Q24, with a net interest margin of 2.98%.
Management expects a mid-to-high 30s down beta on deposit costs by 4Q25 and mid-40s by 4Q26, and expects record net interest income in FY25. Fee revenue is also a focus, with Wealth Management AUM up 22%b year over year and Capital Markets revenues up 50% year over year. On credit, the company describes top-quartile net charge-offs versus peers and a top-tier allowance for credit losses.
The net charge-off ratio was 0.30%c in 3Q24 against a peer median of 0.48%, and its CRE concentration was 9.1% of total loans with a reserve of 4.4%. Management says it is maintaining disciplined expense management.
02—Key points
Key Highlights
- Loan and deposit growth ranked #1 versus peers in 3Q24; 6.3% annualized EOP loan growth and 5.6% YoY average deposit growth
- Net interest income of $1,364 million in 3Q24 with a 2.98% net interest margin; management expects record net interest income in FY25
- Deposit cost down beta targets: mid-to-high 30s by 4Q25 and mid-40s by 4Q26; 11 bps decline in deposit costs achieved in October
- Noninterest income focus on payments, wealth management, and capital markets: Wealth Management AUM up 22% YoY and Capital Markets revenues up 50% YoY
- Net charge-off ratio of 0.30% in 3Q24 versus 0.48% peer median; CRE concentration of 9.1% of total loans with a 4.4% reserve
- Hedging program: added $0.3 billion of forward-starting 4-year swaps in 3Q24 and $2.5 billion of forward-starting 2.5-4 year swaps quarter-to-date in 4Q24
03—Questions
Frequently Asked Questions
What is the purpose of this 8-K filing?
The filing furnishes presentation slides under Item 7.01 (Regulation FD Disclosure) for Huntington's participation at the 2024 BancAnalysts Association of Boston Conference on November 7, 2024. The slides are attached as Exhibit 99.1 and are furnished rather than filed for purposes of Section 18 of the Exchange Act.
What growth did Huntington report in loans and deposits?
The presentation cites 6.3% annualized end-of-period loan growth and 5.6% year-over-year average deposit growth. It states Huntington ranked #1 in loan and deposit growth versus peers for 3Q24.
What does management expect for net interest income?
Management expects record net interest income in FY25. Net interest income was $1,364 million in 3Q24, with a 2.98% net interest margin, and the presentation shows a 4Q24 estimate and a 4Q25 estimate.
How strong is Huntington's credit performance?
The presentation reports a 3Q24 net charge-off ratio of 0.30% versus a 0.48% peer median, and describes top-tier allowance for credit losses. Commercial real estate is 9.1% of total loans, which management describes as the lowest quartile, supported by a 4.4% reserve.
What is management doing to grow fee revenue?
Management is focusing on payments, wealth management, and capital markets. Wealth Management AUM rose 22% year over year and Capital Markets revenues rose 50% year over year, and the company launched in-house merchant acquiring capabilities.
04—Continue