HUNTINGTON BANCSHARES INC MD
For the period ended Mar 31, 2025. Filed Apr 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 29, 2025
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Discussion of Results of Operations
This section provides a review of financial performance on a consolidated basis. Key unaudited interim consolidated balance sheet and unaudited interim income statement trends are discussed. All earnings per share data are reported on a diluted basis. For additional insight on financial performance, please read this section in conjunction with the “Business Segment Discussion.”
8 Huntington Bancshares Incorporated
Average Balance Sheet / Net Interest Income
The following table details the change in our average balance sheet and the net interest margin.
| Table 2 - Consolidated Quarterly Average Balance Sheet and Net Interest Margin Analysis | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended March 31, 2025 · Three Months Ended March 31, 2024 | |||||||||||||||||
| Average · Interest Income/Expense · Yield/ · Average · Interest Income/Expense · Yield/ · Change in Average Balances | |||||||||||||||||
| (dollar amounts in millions) · Balances · (FTE) (1) · Rate (2) · Balances · (FTE) (1) · Rate (2) · Amount · Percent | |||||||||||||||||
| Assets: | |||||||||||||||||
| Interest-earning deposits with banks | $11,632 | $129 | 4.45% | $9,761 | $134 | 5.50% | $1,871 | 19% | |||||||||
| Securities: | |||||||||||||||||
| Trading account securities | 487 | 4 | 3.67 | 133 | 2 | 5.15 | 354 | NM | |||||||||
| Available-for-sale securities: | |||||||||||||||||
| Taxable | 24,245 | 287 | 4.73 | 22,515 | 296 | 5.26 | 1,730 | 8 | |||||||||
| Tax-exempt | 3,254 | 42 | 5.22 | 2,676 | 34 | 5.05 | 578 | 22 | |||||||||
| Total available-for-sale securities | 27,499 | 329 | 4.79 | 25,191 | 330 | 5.24 | 2,308 | 9 | |||||||||
| Held-to-maturity securities—taxable | 16,358 | 108 | 2.64 | 15,567 | 95 | 2.44 | 791 | 5 | |||||||||
| Other securities | 877 | 12 | 5.28 | 724 | 9 | 5.23 | 153 | 21 | |||||||||
| Total securities | 45,221 | 453 | 4.01 | 41,615 | 436 | 4.19 | 3,606 | 9 | |||||||||
| Loans held for sale | 584 | 9 | 6.48 | 458 | 7 | 6.51 | 126 | 28 | |||||||||
| Loans and leases: (3) | |||||||||||||||||
| Commercial: | |||||||||||||||||
| Commercial and industrial | 57,555 | 873 | 6.07 | 50,625 | 801 | 6.26 | 6,930 | 14 | |||||||||
| Commercial real estate | 11,021 | 185 | 6.72 | 12,563 | 240 | 7.56 | (1,542) | (12) | |||||||||
| Lease financing | 5,476 | 89 | 6.49 | 5,081 | 79 | 6.13 | 395 | 8 | |||||||||
| Total commercial | 74,052 | 1,147 | 6.19 | 68,269 | 1,120 | 6.49 | 5,783 | 8 | |||||||||
| Consumer: | |||||||||||||||||
| Residential mortgage | 24,299 | 250 | 4.11 | 23,710 | 227 | 3.83 | 589 | 2 | |||||||||
| Automobile | 14,665 | 207 | 5.71 | 12,553 | 158 | 5.05 | 2,112 | 17 | |||||||||
| Home equity | 10,123 | 183 | 7.33 | 10,072 | 195 | 7.77 | 51 | 1 | |||||||||
| RV and marine | 5,951 | 78 | 5.34 | 5,892 | 74 | 5.04 | 59 | 1 | |||||||||
| Other consumer | 1,772 | 48 | 11.01 | 1,434 | 42 | 11.91 | 338 | 24 | |||||||||
| Total consumer | 56,810 | 766 | 5.44 | 53,661 | 696 | 5.20 | 3,149 | 6 | |||||||||
| Total loans and leases | 130,862 | 1,913 | 5.87 | 121,930 | 1,816 | 5.92 | 8,932 | 7 | |||||||||
| Total earning assets | 188,299 | 2,504 | 5.39 | 173,764 | 2,393 | 5.54 | 14,535 | 8 | |||||||||
| Cash and due from banks | 1,404 | 1,493 | (89) | (6) | |||||||||||||
| Goodwill and other intangible assets | 5,651 | 5,697 | (46) | (1) | |||||||||||||
| All other assets | 9,733 | 9,352 | 381 | 4 | |||||||||||||
| Total assets | $205,087 | $190,306 | $14,781 | 8% | |||||||||||||
| Liabilities and shareholders’ equity: | |||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||
| Demand deposits—interest-bearing | $43,582 | $205 | 1.91% | $38,488 | $200 | 2.09% | $5,094 | 13% | |||||||||
| Money market deposits | 60,213 | 458 | 3.08 | 51,310 | 481 | 3.77 | 8,903 | 17 | |||||||||
| Savings deposits | 14,866 | 7 | 0.20 | 15,625 | 2 | 0.04 | (759) | (5) | |||||||||
| Time deposits | 13,993 | 140 | 4.06 | 15,395 | 174 | 4.55 | (1,402) | (9) | |||||||||
| Total interest-bearing deposits | 132,654 | 810 | 2.48 | 120,818 | 857 | 2.85 | 11,836 | 10 | |||||||||
| Short-term borrowings | 1,439 | 14 | 3.87 | 1,300 | 19 | 5.95 | 139 | 11 | |||||||||
| Long-term debt | 16,901 | 239 | 5.68 | 13,777 | 217 | 6.30 | 3,124 | 23 | |||||||||
| Total interest-bearing liabilities | 150,994 | 1,063 | 2.86 | 135,895 | 1,093 | 3.23 | 15,099 | 11 | |||||||||
| Demand deposits—noninterest-bearing | 28,946 | 29,910 | (964) | (3) | |||||||||||||
| All other liabilities | 5,102 | 5,239 | (137) | (3) | |||||||||||||
| Total liabilities | 185,042 | 171,044 | 13,998 | 8 | |||||||||||||
| Total Huntington shareholders’ equity | 19,997 | 19,213 | 784 | 4 | |||||||||||||
| Non-controlling interest | 48 | 49 | (1) | (2) | |||||||||||||
| Total equity | 20,045 | 19,262 | 783 | 4 | |||||||||||||
| Total liabilities and equity | $205,087 | $190,306 | $14,781 | 8% | |||||||||||||
| Net interest rate spread | 2.53 | 2.31 | |||||||||||||||
| Impact of noninterest-bearing funds on NIM | 0.57 | 0.70 | |||||||||||||||
| NII/NIM (FTE) | $1,441 | 3.10% | $1,300 | 3.01% | |||||||||||||
(1)FTE yields are calculated assuming a 21% tax rate.
(2)Yield/rates include the impact of applicable derivatives. Loan and lease and deposit average yield/rates also include impact of applicable non-deferrable and amortized fees.
(3)For purposes of this analysis, NALs are reflected in the average balances of loans and leases.
2025 1Q Form 10-Q 9
Quarterly Net Interest Income
Net interest income for the first quarter of 2025 increased $139 million, or 11%, from the first quarter of 2024. FTE net interest income, a non-GAAP financial measure, for the first quarter of 2025 increased $141 million, or 11%, from the first quarter of 2024. The increase in FTE net interest income primarily reflects a $14.5 billion, or 8%, increase in average earning assets and a 9 basis point increase in the FTE NIM to 3.10%, partially offset by a $15.1 billion, or 11%, increase in average interest-bearing liabilities. The higher NIM was driven by lower cost of funds, the impact of hedging, and the benefit of higher interest recoveries and other activity, partially offset by a decrease in yields on earning assets.
Quarterly Average Balance Sheet
Average assets for the first quarter of 2025 were $205.1 billion, an increase of $14.8 billion, or 8%, from the first quarter of 2024, primarily due to increases in average loans and leases of $8.9 billion, or 7%, average total securities of $3.6 billion, or 9%, and average interest-earning deposits with banks of $1.9 billion, or 19%. The increase in average loans and leases was driven by growth in average commercial loans and leases of $5.8 billion, or 8%, and average consumer loans of $3.1 billion, or 6%.
Average liabilities for the first quarter of 2025 increased $14.0 billion, or 8%, from the first quarter of 2024, primarily due to increases in average deposits of $10.9 billion, or 7%, and in total borrowings of $3.3 billion, or 22%. Average deposits increased due to an increase in average interest-bearing deposits of $11.8 billion, or 10%, partially offset by a decrease in noninterest-bearing deposits of $1.0 billion, or 3%. The increase in average interest-bearing deposits was primarily due to increases in average money market and interest-bearing demand deposits, partially offset by decreases in average time and savings deposits. The increase in average total borrowings was driven by an increase in long-term FHLB advances used to support asset growth, the first quarter 2024 auto loan securitization, and CLN transactions.
Average shareholders’ equity for the first quarter of 2025 increased $784 million, or 4%, from the first quarter of 2024, primarily due to earnings, net of dividends, and the benefit from a decrease in average accumulated other comprehensive loss driven by changes in the interest rate environment, partially offset by the fourth quarter 2024 redemption of series E preferred stock.
Provision for Credit Losses
(This section should be read in conjunction with the “Credit Risk” section.)
The provision for credit losses for the first quarter of 2025 was $115 million, an increase of $8 million, or 7%, compared to the first quarter of 2024.
The following table presents the components of the provision for credit losses.
| Table 3 - Provision for Credit Losses | ||
|---|---|---|
| Three Months Ended | ||
| (dollar amounts in millions) | March 31, 2025 | March 31, 2024 |
| Provision for loan and lease losses | $105 | $117 |
| Provision (benefit) for unfunded lending commitments | 13 | (10) |
| Provision (benefit) for securities | (3) | — |
| Total provision for credit losses | $115 | $107 |
10 Huntington Bancshares Incorporated
Noninterest Income
The following table reflects noninterest income for each of the periods presented.
| Table 4 - Noninterest Income | |||
|---|---|---|---|
| Three Months Ended | |||
| March 31, | March 31, | Change | |
| (dollar amounts in millions) | 2025 | 2024 | Percent |
| Payments and cash management revenue | $155 | $146 | 6% |
| Wealth and asset management revenue | 101 | 88 | 15 |
| Customer deposit and loan fees | 86 | 77 | 12 |
| Capital markets and advisory fees | 67 | 56 | 20 |
| Mortgage banking income | 31 | 31 | — |
| Leasing revenue | 14 | 22 | (36) |
| Insurance income | 20 | 19 | 5 |
| Other noninterest income | 20 | 28 | (29) |
| Total noninterest income | $494 | $467 | 6% |
Noninterest income for the first quarter of 2025 was $494 million, an increase of $27 million, or 6%, from the year-ago quarter. Wealth and asset management revenue increased $13 million, or 15%, primarily due to increases in trust and management account fees. Capital markets and advisory fees increased $11 million, or 20%, primarily due to commercial loan production related capital market activities.
Noninterest Expense
The following table reflects noninterest expense for each of the periods presented.
| Table 5 - Noninterest Expense | |||
|---|---|---|---|
| Three Months Ended | |||
| March 31, | March 31, | Change | |
| (dollar amounts in millions) | 2025 | 2024 | Percent |
| Personnel costs | $671 | $639 | 5% |
| Outside data processing and other services | 170 | 166 | 2 |
| Equipment | 67 | 70 | (4) |
| Net occupancy | 65 | 57 | 14 |
| Marketing | 29 | 28 | 4 |
| Deposit and other insurance expense | 37 | 54 | (31) |
| Professional services | 22 | 25 | (12) |
| Amortization of intangibles | 11 | 12 | (8) |
| Lease financing equipment depreciation | 4 | 4 | — |
| Other noninterest expense | 76 | 82 | (7) |
| Total noninterest expense | $1,152 | $1,137 | 1% |
| Number of employees (average full-time equivalent) | 20,092 | 19,719 | 2% |
Noninterest expense for the first quarter of 2025 was $1.2 billion, an increase of $15 million, or 1%, from the year-ago quarter. Personnel costs increased $32 million, or 5%, primarily due to higher incentive compensation and salary expense. Partially offsetting this increase, deposit and other insurance expense decreased $17 million, or 31%, primarily due to a $29 million expense reduction attributable to the FDIC DIF special assessment, partially offset by non-recurring adjustments to FDIC insurance expense.
2025 1Q Form 10-Q 11
Provision for Income Taxes
The provision for income taxes in the first quarter of 2025 was $122 million, compared to $86 million in the first quarter of 2024. Both periods included the benefits from general business credits, tax-exempt income, tax-exempt bank-owned life insurance income, and investments in qualified affordable housing projects. The effective tax rate for the first quarter of 2025 and first quarter of 2024 was 18.6% and 16.8%, respectively. The increases in both the provision for income taxes and effective tax rate in the first quarter of 2025, compared to the first quarter of 2024, related primarily to higher pretax income and lower discrete tax benefits.
The net federal deferred tax asset was $598 million, and the net state deferred tax asset was $91 million at March 31, 2025.
We file income tax returns with the IRS and various state, city, and foreign jurisdictions. Federal income tax audits have been completed for tax years through 2019. The 2020-2023 tax years remain open under the statute of limitations. Also, with few exceptions, the Company is no longer subject to state, city, or foreign income tax examinations for tax years before 2020.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.