On July 19, 2024, Huntington Bancshares Inc (HBAN, Financial) released its 8-K filing for the second quarter of 2024. Huntington Bancshares Inc is a regional bank holding company headquartered in Columbus, Ohio, operating primarily in Consumer & Regional Banking and Commercial Banking segments.
Performance Overview
Huntington Bancshares Inc reported earnings per share (EPS) of $0.30 for Q2 2024, surpassing the analyst estimate of $0.28. The company also reported net income of $474 million, an increase of $55 million from the previous quarter but a decrease of $85 million from the same quarter last year. Revenue for the quarter was $1.81 billion, in line with the analyst estimate of $1.81 billion.
Financial Achievements
Key financial achievements for the quarter include a 2% increase in net interest income from the prior quarter, reaching $1.31 billion. Noninterest income also saw a 5% rise to $491 million. The bank's average total deposits grew by $2.9 billion, or 2%, from the prior quarter and $8.0 billion, or 6%, from the year-ago quarter. Average total loans and leases increased by $1.4 billion, or 1%, from the prior quarter to $123.4 billion.
Income Statement Highlights
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income ($ millions) | 474 | 419 | 559 |
| Diluted EPS | 0.30 | 0.26 | 0.35 |
| Net Interest Margin | 2.99% | 3.01% | 3.11% |
| Return on Average Assets | 0.98% | 0.89% | 1.18% |
Balance Sheet and Cash Flow
Huntington Bancshares Inc reported cash and cash equivalents and available contingent borrowing capacity totaling $95 billion as of June 30, 2024, representing 204% of estimated uninsured deposits. The bank's Common Equity Tier 1 (CET1) risk-based capital ratio increased to 10.4%, up from 10.2% in the prior quarter. The tangible common equity (TCE) ratio remained stable at 6.0% from the prior quarter.
CEO Commentary
“Our second quarter results were highlighted by an expansion in revenue from the prior quarter, including in both net interest income and noninterest income,” said Steve Steinour, chairman, president, and CEO. “We delivered accelerated loan growth in the quarter and continued our trend of increasing deposit balances."
Analysis
Huntington Bancshares Inc's performance in Q2 2024 demonstrates robust growth in both loans and deposits, which is crucial for sustaining long-term profitability. The increase in net interest income and noninterest income indicates effective management of interest rate spreads and diversified revenue streams. However, the slight decrease in net interest margin and the increase in nonperforming assets highlight areas that require close monitoring.
Overall, Huntington Bancshares Inc's strong capital position and liquidity profile provide a solid foundation for future growth, making it an attractive option for value investors.
Explore the complete 8-K earnings release (here) from Huntington Bancshares Inc for further details.
