01—Abstract
Summary
Summary of the 8-K filed April 17, 2025. Cited figures are marked; the original filing is the authoritative source.
Huntington Bancshares Incorporated (HBAN) reported first-quarter 2025 net income attributable to Huntington of $527 milliona, or $0.34 per diluted common share.
That was a $3 millionb decrease 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 was 16.7%. Net interest income rose $31 million, or 2%, from the prior quarter and $139 million, or 11%, from the year-ago quarter, with net interest margin up to 3.10%.
Noninterest income fell $65 millionc, or 12%, sequentially to $494 million, mainly because of higher advisory fees in the fourth quarter of 2024, but it increased $27 million, or 6%, year over year. Balance sheet growth continued. Average total loans and leases rose $2.7 billion, or 2%, sequentially to $130.9 billion and $8.9 billion, or 7%, year over year, led by commercial and industrial loans.
Average total deposits increased $2.2 billiond, or 1%, sequentially and $10.9 billion, or 7%, year over year, and total deposit costs declined to 2.03%, down 13 basis points from the prior quarter. Credit metrics were stable to improving: net charge-offs were 0.26% of average loans and leases, down 4 basis points sequentially, and the nonperforming asset ratio was 0.61%. The allowance for credit losses was $2.5 billion, or 1.87% of total loans and leases.
Capital ratios strengthened. The CET1 risk-based capital ratio was an estimated 10.6% at March 31, 2025, up from 10.5%, and the tangible common equity ratio rose to 6.3% from 6.1%. Tangible book value per share was $8.80, up $0.47, or 6%, sequentially and $1.03, or 13%, year over year.
The Board approved a share repurchase authorization of up to $1 billion with no expiration date. Management also completed a credit linked note transaction on an approximately $3.5 billion pool of prime indirect auto loans, which reduced the risk-weighting of that pool by approximately 75%.
02—Key points
Key Highlights
- Q1 2025 EPS of $0.34 was unchanged from the prior quarter and $0.08 higher than the year-ago quarter; net income of $527 million rose 26% year over year.
- Net interest income of $1,426 million increased 2% sequentially and 11% year over year, with net interest margin of 3.10% versus 3.03% in the prior quarter.
- Average total loans and leases reached $130.9 billion, up 7% year over year, with average commercial loans up $5.8 billion, or 8%.
- Total deposit costs declined to 2.03%, down 13 basis points from the prior quarter, while average total deposits grew 7% year over year to $161.6 billion.
- Noninterest income of $494 million fell 12% sequentially on lower capital markets and advisory fees, but rose 6% from the year-ago quarter.
- Credit quality improved: net charge-offs were 0.26% of average loans, down 4 basis points sequentially, and the NPA ratio was 0.61%.
- CET1 ratio rose to an estimated 10.6%, tangible book value per share reached $8.80, and the Board approved a $1 billion share repurchase authorization.
03—Questions
Frequently Asked Questions
How did Huntington perform in the first quarter of 2025?
Net income attributable to Huntington was $527 million, or $0.34 per diluted share, compared with $419 million, or $0.26 per share, in 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 was 16.7%.
What drove the increase in net interest income?
The filing attributes the year-over-year increase in fully-taxable equivalent net interest income to a $14.5 billion, or 8%, increase in average earning assets and a 9 basis point increase in net interest margin to 3.10%. The margin increase reflected lower funding costs, the impact of hedging, and higher interest recoveries, partially offset by lower asset yields.
Why did noninterest income decline from the prior quarter?
Noninterest income decreased $65 million, or 12%, from the fourth quarter of 2024. Capital markets and advisory fees fell $53 million, or 44%, mainly due to higher advisory fees in the prior quarter, and other noninterest income fell $25 million, or 56%, due to items including equity and mezzanine investment valuations.
What capital actions did Huntington take?
The Board approved a repurchase authorization of up to $1 billion of common shares with no expiration date, subject to Federal Reserve capital regulations. Huntington also completed a credit linked note transaction on an approximately $3.5 billion pool of prime indirect auto loans, which reduced the risk-weighting of that pool by approximately 75%. The CET1 ratio was an estimated 10.6% at March 31, 2025.
How did credit quality trend?
Net charge-offs were $86 million, or 0.26% of average loans and leases, down from $97 million, or 0.30%, in the prior quarter. Nonperforming assets were $804 million, or 0.61% of total loans, leases, OREO and other NPAs, and the allowance for credit losses was $2.5 billion, or 1.87% of total loans and leases. The provision for credit losses rose to $115 million.
04—Continue