Huntington Bancshares Reports Strong Q3 2024 Earnings Results
Huntington Bancshares Incorporated has announced its earnings for the third quarter of 2024, revealing significant growth metrics across various indicators. This quarter highlighted a sequential increase in net interest income, robust fee revenues, and continued strength in loan and deposit growth, alongside commendable credit quality.
Financial Highlights for Q3 2024
Here are key financial metrics that define Huntington's performance for the quarter:
- Earnings per common share (EPS) reached $0.33, a slight increase of $0.03 from the previous quarter but a decrease of $0.02 compared to the same period last year.
- Net interest income grew by $39 million (3%) since the prior quarter but saw a reduction of $17 million (1%) year-over-year.
- Noninterest income climbed significantly, increasing by $32 million (7%) from the last quarter to a total of $523 million. Compared to last year, it rose by $14 million (3%). Notably, excluding specific mark-to-market influences, noninterest income would have seen an increase of $55 million (12%) over the past year.
- The average total loans and leases grew by $1.1 billion (1%) to reach $124.5 billion. When measured against last year, this figure surged by $3.7 billion (3%).
- Ending total loans exhibited a rise of $2.0 billion (2%) compared to the last quarter and $5.5 billion (5%) year-over-year.
- Average total deposits grew by $2.9 billion (2%) since the prior quarter and by $8.3 billion (6%) compared to last year.
- Ending total deposits increased by $4.0 billion (3%) from the previous quarter and $9.5 billion (6%) from a year ago.
- Net charge-offs stood at 0.30% of average total loans and leases for the quarter.
- The nonperforming asset ratio was 0.62% at the end of the quarter.
- Allowance for credit losses (ACL) reached $2.4 billion or 1.93% of total loans and leases.
- Cash and cash equivalents, along with available contingent borrowing capacity, totaled $95 billion, significantly outpacing estimated uninsured deposits by 195%.
- The Common Equity Tier 1 (CET1) risk-based capital ratio remained sturdy at 10.4%. Adjusted CET1, factoring in the effects of accumulated other comprehensive income (AOCI), increased to 8.9% from 8.6% in the prior quarter.
- Tangible common equity (TCE) ratio improved to 6.4%, up from 6.0% last quarter and significantly from 5.7% a year earlier.
- Tangible book value per share reached $8.65, which is a rise of $0.76 (10%) compared to the previous quarter and $1.53 (21%) year-over-year.
- Significantly, Huntington was recognized as the top national SBA 7(a) loan originator by volume for the seventh consecutive year in the fiscal year 2024, reinforcing its strong position in the market.
Strong Financial Performance
Huntington's net income for the third quarter was reported at $517 million, translating to $0.33 per common share. This represented an increase of $43 million (or $0.03) compared to the previous quarter and a decline of $30 million ($0.02) year-over-year. Return metrics also reflected health: return on average assets was recorded at 1.04%, with return on average common equity at 10.8% and return on average tangible common equity at an impressive 16.2%.
Insights from the CEO
CEO Steve Steinour shared his perspective on the quarter's performance, stating: "Our third quarter results were highlighted by sequential revenue and profit expansion." He emphasized the company's commitment to accelerating loan growth and maintaining a steady deposit-gathering strategy, underlining active management in response to market conditions.
"Huntington is positioned robustly due to disciplined management over the years. Our liquidity and capital remain strong, aiding our organic growth and customer relationship initiatives," Steinour noted.
He also expressed satisfaction with credit performance, highlighting stable net charge-offs and a favorable outlook as customers exhibit resilience in their financial situations. Looking forward, Steinour anticipates continued robust loan growth into the next quarter, with expectations of solid revenue and profitability heading into 2025.
Conference Call and Earnings Materials
For those interested in further details regarding Huntington Bancshares' earnings call, senior management hosted a conference call to discuss the third quarter results. The call provided insights into the financial performance and strategic direction of the company, available through their Investor Relations section online.
About Huntington Bancshares Incorporated
Huntington Bancshares Incorporated operates as a regional banking institution with $201 billion in assets. Founded in 1866 and headquartered in Columbus, this organization provides a wide range of banking and financial services across its 975 branches in various states. Their product offerings align with consumer banking needs, catering to small and medium enterprises alongside corporate and municipal clients, delivering extensive financial solutions.
Frequently Asked Questions
What were the earnings per share for Q3 2024?
The earnings per share for Q3 2024 were $0.33.
How did net interest income change in Q3?
Net interest income saw an increase of $39 million, or 3%, from the previous quarter but decreased by $17 million, or 1%, compared to last year.
What was Huntington's loan growth for the quarter?
Average total loans and leases increased by $1.1 billion, or 1% from the prior quarter, and by $3.7 billion, or 3%, from the year-ago quarter.
Who is the CEO of Huntington Bancshares?
The CEO of Huntington Bancshares is Steve Steinour, who highlighted the company's strong financial performance this quarter.
Where can I find more information about Huntington's financial results?
Additional financial results and materials are available on Huntington's Investor Relations section of their website.
