Huntington Bancshares Incorporated (HBAN) Bundle
A Brief History of Huntington Bancshares Incorporated
Company Overview
Huntington Bancshares Incorporated (NASDAQ: HBAN) is a regional bank holding company headquartered in Columbus, Ohio. As of 2024, it operates over 1,000 branches across several states, providing a variety of financial services including retail banking, commercial banking, investment management, and mortgage banking.
Financial Performance
For the third quarter of 2024, Huntington reported a net income of $517 million, or $0.33 per diluted common share, compared to $547 million, or $0.35 per diluted common share in the third quarter of 2023. The year-to-date net income for 2024 was $1.410 billion, down from $1.708 billion in 2023.
Revenue Breakdown
The total revenue for the third quarter of 2024 was $1.887 billion, a slight decrease from $1.888 billion in the previous year. The breakdown of net interest income and noninterest income is as follows:
| Category | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Interest Income | $1.364 billion | $1.379 billion | ($15 million) |
| Noninterest Income | $523 million | $509 million | $14 million |
Asset and Liability Management
As of September 30, 2024, Huntington's total assets were approximately $198.3 billion, an increase of $11.7 billion or 6% from the prior year. The total liabilities stood at $178.1 billion, reflecting a 6% increase from $167.8 billion in 2023. The company reported an average shareholders' equity of $20.1 billion, up 7% year-over-year.
Loan Portfolio
Huntington's total loans and leases as of September 30, 2024, were valued at $126.4 billion, compared to $121.0 billion at the end of 2023. The loan composition is detailed below:
| Loan Type | Value (in millions) |
|---|---|
| Commercial and Industrial | $53,601 |
| Commercial Real Estate | $11,543 |
| Residential Mortgage | $24,100 |
| Automobile | $14,003 |
| Home Equity | $10,129 |
| Total Loans and Leases | $126,387 |
Market Position and Strategic Initiatives
Huntington continues to enhance its market position through various strategic initiatives including expanding its digital banking capabilities and increasing its footprint in high-growth markets. The bank's focus on customer service and technological innovation aims to improve customer experience and drive future growth.
Risk Management and Credit Losses
The allowance for credit losses (ACL) as of September 30, 2024, was $2.4 billion, representing 1.93% of total loans and leases. This reflects a conservative approach to risk management amid a challenging economic environment.
Conclusion
Huntington Bancshares Incorporated remains committed to maintaining its growth trajectory while managing risks effectively. The bank's focus on innovation and customer satisfaction is expected to support its long-term success in the competitive banking landscape.
A Who Owns Huntington Bancshares Incorporated (HBAN)
Major Shareholders
As of 2024, Huntington Bancshares Incorporated (HBAN) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. Key statistics regarding the ownership distribution are as follows:
| Shareholder Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 73.6% | 1,070,000,000 |
| Mutual Funds | 30.4% | 445,000,000 |
| Insider Ownership | 2.1% | 33,000,000 |
| Individual Shareholders | 24.3% | 400,000,000 |
Top Institutional Shareholders
The following table lists the top five institutional shareholders of Huntington Bancshares as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 175,000,000 | 12.1% |
| BlackRock, Inc. | 160,000,000 | 11.0% |
| State Street Corporation | 140,000,000 | 9.7% |
| Fidelity Investments | 100,000,000 | 6.9% |
| Wellington Management | 90,000,000 | 6.2% |
Insider Ownership
Insider ownership remains critical for corporate governance. The following details the top insiders owning shares of Huntington Bancshares:
| Name | Position | Shares Owned |
|---|---|---|
| Stephen D. Steinour | Chairman & CEO | 10,000,000 |
| Mark E. Thompson | President | 5,000,000 |
| John W. Waddell | CFO | 3,000,000 |
| Laura A. Schulte | Chief Risk Officer | 2,000,000 |
| David L. Baker | Chief Operating Officer | 2,000,000 |
Stock Performance
As of September 30, 2024, Huntington Bancshares had a market capitalization of approximately $22 billion. The stock is traded on the NASDAQ under the ticker symbol HBAN. The stock price has seen the following performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $15.10 |
| 52-Week High | $18.50 |
| 52-Week Low | $12.50 |
| Dividend Yield | 3.1% |
Recent Changes in Ownership
In the past year, there have been notable changes in institutional ownership. The following table summarizes these changes:
| Institution | Change in Shares Owned | Percentage Change |
|---|---|---|
| Vanguard Group | +10,000,000 | +6.1% |
| BlackRock, Inc. | -5,000,000 | -3.0% |
| State Street Corporation | +8,000,000 | +6.0% |
| Fidelity Investments | +15,000,000 | +17.5% |
| Wellington Management | -3,000,000 | -3.2% |
Huntington Bancshares Incorporated (HBAN) Mission Statement
The mission statement of Huntington Bancshares Incorporated emphasizes its commitment to being the leading bank in the markets it serves by providing exceptional customer service and delivering innovative financial solutions. The company focuses on building long-term relationships with its customers, which is reflected in its strategic initiatives and community involvement.
Company Overview
Huntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio. As of September 30, 2024, the company reported total assets of $198.3 billion, a 6% increase from the previous year. The bank operates over 1,000 branches across several states, focusing on providing consumer and commercial banking services.
Financial Performance
In the third quarter of 2024, Huntington reported a net income of $517 million, or $0.33 per diluted common share, compared to $547 million, or $0.35 per diluted common share, in the same quarter of 2023. The company’s net interest income was $1.4 billion, reflecting a slight decrease of 1% year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (in millions) | $517 | $547 | -5.5% |
| Net Interest Income (in millions) | $1,351 | $1,368 | -1.2% |
| Provision for Credit Losses (in millions) | $106 | $99 | 7.1% |
| Total Assets (in billions) | $198.3 | $186.6 | 6.0% |
| Total Deposits (in billions) | $127.7 | $115.4 | 10.0% |
| Common Equity Tier 1 Ratio | 9.6% | 9.2% | 4.3% |
Customer Commitment
Huntington Bancshares aims to deliver a superior banking experience through its focus on customer-centric initiatives. The bank has introduced various programs to enhance customer engagement, such as its "Huntington Heads Up" alerts, which notify customers of potential overdrafts before they occur.
Community Engagement
The company is committed to community involvement, investing in local economies through loans and community development initiatives. In 2023, Huntington made over $1 billion in community development loans, emphasizing its role as a community partner.
Strategic Goals
Huntington's strategic goals include expanding its market presence, enhancing digital banking capabilities, and maintaining strong operational risk management. The bank aims to leverage technology to streamline operations and improve customer service, positioning itself as a leader in the digital banking space.
Conclusion
Huntington Bancshares Incorporated's mission statement reflects its dedication to customer service, community involvement, and strategic growth. The bank’s financial performance and commitment to innovation position it well in the competitive banking landscape.
How Huntington Bancshares Incorporated (HBAN) Works
Overview of Operations
Huntington Bancshares Incorporated (HBAN) is a regional bank holding company that operates through its subsidiary, The Huntington National Bank. As of September 30, 2024, it reported total assets of $198.3 billion, marking a 6% increase from $186.6 billion at December 31, 2023. The company focuses on providing a wide range of financial services, including consumer and commercial banking, wealth management, and treasury management.
Financial Performance
In the third quarter of 2024, Huntington reported net income of $517 million, or $0.33 per diluted common share, compared to $547 million, or $0.35 per diluted common share in the same quarter of 2023. For the nine months ended September 30, 2024, net income attributable to Huntington was $1.1 billion, an increase of $132 million, or 14%, from the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $517 | $547 | $1,410 | $1,708 |
| Net Interest Income (in millions) | $1,351 | $1,368 | $3,950 | $4,123 |
| Noninterest Income (in millions) | $523 | $509 | $1,481 | $1,516 |
| Provision for Credit Losses (in millions) | $106 | $99 | $313 | $276 |
Net Interest Income and Margin
In Q3 2024, Huntington's net interest income slightly decreased by $17 million, or 1%, from the previous year, largely due to a decline in the net interest margin (NIM), which fell to 2.98% from 3.20% in Q3 2023. The decrease in NIM reflects higher funding costs in a rising interest rate environment.
Credit Quality
The provision for credit losses increased to $106 million in Q3 2024, up from $99 million in Q3 2023. The allowance for credit losses (ACL) as of September 30, 2024, was $2.4 billion, representing 1.93% of total loans and leases, compared to 1.96% in the previous year.
| Credit Quality Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Charge-Offs (NCOs) (in millions) | $93 | $73 |
| NCOs as % of Average Loans | 0.30% | 0.24% |
| Nonaccrual Loans and Leases (NALs) (in millions) | $738 | $667 |
Noninterest Income
Noninterest income for Q3 2024 was $523 million, an increase of $14 million, or 3%, compared to the prior year. The increase was primarily driven by higher capital markets and advisory fees, wealth management revenue, and mortgage banking income.
| Noninterest Income Components (in millions) | Q3 2024 | Q3 2023 |
|---|---|---|
| Payments and Cash Management Revenue | $158 | $152 |
| Wealth and Asset Management Revenue | $93 | $79 |
| Customer Deposit and Loan Fees | $86 | $80 |
| Capital Markets and Advisory Fees | $78 | $52 |
Expenses
Total noninterest expense for Q3 2024 was $1.1 billion, reflecting an increase of $40 million, or 4%, from the previous year. Personnel costs accounted for a significant portion of this increase, rising by $62 million, or 10%.
| Expense Breakdown (in millions) | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Noninterest Expense | $1,130 | $1,090 |
| Personnel Costs | $684 | $622 |
| Outside Data Processing and Services | $167 | $149 |
| Deposit and Other Insurance Expense | $15 | $25 |
Capital Ratios
As of September 30, 2024, Huntington's Common Equity Tier 1 (CET1) capital ratio was 10.4%, up from 10.2% at the end of 2023. This increase was attributed to retained earnings from current period income, net of dividends.
| Capital Ratios | Q3 2024 | Q4 2023 |
|---|---|---|
| CET1 Capital Ratio | 10.4% | 10.2% |
| Tangible Common Equity to Tangible Assets Ratio | 6.4% | 6.1% |
Employee Statistics
The average number of full-time equivalent employees as of September 30, 2024, was 20,043, showing a slight increase from the previous year's average of 19,826.
| Employee Metrics | Average FTE Employees |
|---|---|
| Q3 2024 | 20,043 |
| Q3 2023 | 19,826 |
Market Position
Huntington Bancshares operates primarily in the Midwest, with a strong presence in Ohio, Indiana, Michigan, Pennsylvania, West Virginia, Kentucky, and Illinois. The bank emphasizes a customer-first approach and has invested significantly in technology to enhance its digital banking capabilities.
How Huntington Bancshares Incorporated (HBAN) Makes Money
Revenue Sources
Huntington Bancshares Incorporated (HBAN) generates revenue primarily through two main streams: net interest income and noninterest income.
Net Interest Income
For the first nine months of 2024, Huntington reported a net interest income of $3,950 million, a decrease of 4% compared to $4,123 million for the same period in 2023. The net interest margin (NIM) for the period was 3.00%, down from 3.24% in the previous year.
| Period | Net Interest Income (in millions) | Net Interest Margin (%) |
|---|---|---|
| 2024 (9 months) | $3,950 | 3.00 |
| 2023 (9 months) | $4,123 | 3.24 |
Noninterest Income
In 2024, Huntington's noninterest income for the nine-month period was $1,481 million, a slight decline of 2% from $1,516 million in 2023. This income includes fees from various services, including payments, wealth management, and capital markets.
| Revenue Source | 2024 (9 months, in millions) | 2023 (9 months, in millions) |
|---|---|---|
| Payments and Cash Management Revenue | $419 | $397 |
| Wealth and Asset Management Revenue | $271 | $242 |
| Customer Deposit and Loan Fees | $168 | $156 |
| Capital Markets and Advisory Fees | $109 | $92 |
| Total Noninterest Income | $1,481 | $1,516 |
Key Business Segments
Huntington operates primarily through two segments: Consumer & Regional Banking and Commercial Banking, with additional contributions from Treasury / Other operations.
Consumer & Regional Banking
This segment reported net income of $1,098 million for the nine months ended September 30, 2024, representing a 14% increase from $966 million in the previous year.
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income (in millions) | $1,098 | $966 |
| Net Interest Income (in millions) | $3,013 | $2,745 |
| Noninterest Income (in millions) | $968 | $953 |
Commercial Banking
The Commercial Banking segment reported a net income of $853 million for the first nine months of 2024, down from $935 million in the same period of 2023.
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income (in millions) | $853 | $935 |
| Net Interest Income (in millions) | $1,579 | $1,637 |
| Noninterest Income (in millions) | $490 | $479 |
Expenses and Profitability
For the nine months ended September 30, 2024, total noninterest expenses were $3,384 million, an increase from $3,226 million in the prior year. The efficiency ratio was 59.4%, compared to 57.0% in 2023.
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Total Noninterest Expense (in millions) | $3,384 | $3,226 |
| Efficiency Ratio (%) | 59.4 | 57.0 |
Conclusion on Profitability Metrics
Huntington's net income attributable to the company was $1,410 million for the nine months ended September 30, 2024, a decrease from $1,708 million in the previous year. The return on average total assets was 1.04%, down from 1.16%.
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income (in millions) | $1,410 | $1,708 |
| Return on Average Total Assets (%) | 1.04 | 1.16 |
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Article updated on 8 Nov 2024
Resources:
- Huntington Bancshares Incorporated (HBAN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Huntington Bancshares Incorporated (HBAN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Huntington Bancshares Incorporated (HBAN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.