Huntington Bancshares Incorporated Reports Second-Quarter Earnings
Q2 Results Highlighted by Growth in Key Strategic Fee Revenues and Net Interest Income, Driven by Strong Loan Growth and Expanded Net Interest Margin
2025 Second-Quarter Highlights:
- Earnings per common share (EPS) for the quarter was $0.34, unchanged from the prior quarter, and $0.04 higher than the same quarter last year.
- Net interest income increased $41 million, or 3%, from the previous quarter, and $155 million, or 12%, compared to the year-ago quarter.
- Noninterest income decreased $23 million, or 5%, from the previous quarter, totaling $471 million. However, excluding impacts from a securities repositioning, noninterest income actually increased $37 million, or 7%, from the previous quarter and $34 million, or 7%, from the year-ago quarter.
- Average total loans and leases grew by $2.3 billion, or 2%, from the prior quarter to a total of $133.2 billion and increased $9.8 billion, or 8%, year-over-year.
- Average total deposits increased by $1.8 billion, or 1%, quarter-over-quarter and $9.9 billion, or 6%, from the same quarter last year.
- Net charge-offs were recorded at 0.20% of average total loans and leases for the quarter, marking a decrease of 6 basis points from the previous quarter.
- Nonperforming asset ratio stood at 0.63% at quarter-end, which is 2 basis points higher than the previous quarter.
- Allowance for credit losses (ACL) was $2.5 billion, or 1.86% of total loans and leases, reflecting a $37 million increase from the prior quarter.
- The Common Equity Tier 1 (CET1) risk-based capital ratio was noted at 10.5%, down from 10.6% in the previous quarter.
- Tangible common equity (TCE) ratio improved to 6.6%, an increase from 6.3% in the last quarter.
- The tangible book value per share increased to $9.13, representing a $0.33, or 4%, increase from the prior quarter and a $1.24, or 16%, increase year-over-year.
- Huntington has announced a combination with Veritex Holdings, Inc., to accelerate growth in new strategic markets.
Huntington Bancshares Incorporated (NASDAQ: HBAN) reported a net income of $536 million for the second quarter of 2025, translating to $0.34 per common share, up by $9 million, or 2%, from the previous quarter, and up $62 million, or 13%, from the same quarter last year.
Return on average assets was recorded at 1.04%, while return on average common equity was 11.0%. The return on average tangible common equity (ROTCE) was 16.1%. Excluding impacts from securities repositioning, the ROTCE was notably higher at 17.6%.
CEO Commentary:
Steve Steinour, chairman, president, and CEO stated, "Our second quarter results reflect our continuous execution of our organic growth strategy. We are successfully acquiring new customers and strengthening relationships which enhance both net interest income and fee-based revenues."
He continued, "Our sustained growth can be attributed to focused execution across our core businesses and new growth initiatives. We have achieved approximately $10 billion growth in loans and deposits over the past year. Our commercial specialty banking teams are delivering robust results, further enhancing our national presence. Our brand is gaining traction in emerging markets, supported by our strategic combination with Veritex, which aligns with our growth ambitions."
Steinour added, "Credit performance remains strong, illustrated by improved net charge-offs and stable levels of criticized and non-performing assets. This is indicative of our disciplined credit risk management approach and careful client selection."
He concluded, "We are confident in our ability to implement our strategy and sustain strong growth while upholding our disciplined risk management approach. Our positioning has never been stronger."
Conference Call / Webcast Information:
Huntington's senior management will host an earnings conference call shortly after this release. The call will be accessible via a live Internet broadcast on the company's website. Detailed information will be provided in advance of the call.
About Huntington
Huntington Bancshares Incorporated is a regional bank holding company with assets reaching $208 billion. Founded in 1866, it offers a broad range of banking, payments, wealth management, and risk management services. With 971 branches, it serves 13 states and continues to expand its geographical footprint.
Frequently Asked Questions
What are the key highlights from Huntington's Q2 report?
Key highlights include stable EPS at $0.34, strong loan growth, and expanded net interest margins.
How did net interest income perform in Q2?
Net interest income increased by $41 million, demonstrating growth both quarter-over-quarter and year-over-year.
What is the significance of the Veritex Holdings combination?
The combination aims to accelerate organic growth initiatives and strengthen Huntington's presence in strategic markets.
What are Huntington's future growth strategies?
Huntington plans to leverage its scale, enhance relationships, and deepen client engagement while managing risks effectively.
What is the overall outlook for Huntington Bancshares?
The outlook remains positive with confidence in executing growth strategies while maintaining risk management discipline.
