Solid Q2 Results Reflect Continued Momentum
Demonstrated by Deposit Growth, Expansion of Capital,
and Exceptional Credit Performance
2023 Second-Quarter Highlights:
- Earnings per common share (EPS) for the quarter were
$0.35, a decrease of $0.04 from the prior quarter, and flat from the
year-ago quarter.
- Net interest income decreased $63
million, or 4%, from the prior quarter, and increased
$85 million, or 7%, from the year-ago
quarter.
- Pre-Provision Net Revenue (PPNR) decreased $42 million, or 5%, from the prior quarter to
$802 million, and increased
$68 million, or 9%, from the year-ago
quarter. Excluding Notable Items, adjusted PPNR decreased
$21 million, or 3%, from the prior quarter to
$807 million, and increased $49 million, or 6%, from the
year-ago quarter.
- Cash and cash equivalents and available contingent borrowing
capacity of $88 billion at
June 30, 2023, representing 205% of uninsured deposits.
- Ending total deposits increased $2.7
billion from the prior quarter and $2.6 billion from the year-ago quarter.
Average total deposits decreased $585
million from the prior quarter and $551 million from the year-ago quarter.
-
- Ending core deposits increased $2.5
billion from the prior quarter reflecting continued momentum
in consumer deposit gathering and ongoing focus on acquiring and
deepening primary bank relationships.
- Average total loans and leases increased $925 million, or 1%, from the prior quarter to
$121.3 billion, and increased
$7.4 billion, or 6%, from the
year-ago quarter.
-
- Average total commercial loans and leases increased
$772 million, or 1%, and average
total consumer loans increased $153
million from the prior quarter.
- Net charge-offs of 0.16% of average total loans and leases for
the quarter.
- Nonperforming assets have declined for eight consecutive
quarters to 0.46%.
- Allowance for credit losses (ACL) of $2.3 billion, or 1.93%, of total loans and leases
at quarter end.
- Common Equity Tier 1 (CET1) risk-based capital ratio increased
27 basis points to 9.82%, continuing the trend of capital
build.
- Tangible common equity (TCE) ratio increased 3 basis points to
5.80%.
- Huntington was ranked number one among regional banks in
the J.D. Power 2023 U.S. Banking Mobile App Satisfaction Study
for the fifth consecutive year.
COLUMBUS, Ohio, July 21,
2023 /PRNewswire/ -- Huntington Bancshares
Incorporated (Nasdaq: HBAN) reported net income for the 2023 second
quarter of $559 million, or
$0.35 per common share, an increase
of $20 million, or flat per common
share, from the year-ago quarter.
Return on average assets was 1.18%, return on average common
equity was 12.7%, return on average tangible common equity (ROTCE)
was 19.9%.
CEO Commentary:
"We are pleased to deliver solid financial performance for the
second quarter," said Steve
Steinour, chairman, president, and CEO. "These results
reflect the continued execution of our strategy and the strength of
our balance sheet. We delivered sustained deposit growth, drove
capital ratios higher and managed credit exceptionally well.
"Huntington's foundation has been built over many years
reflecting our disciplined approach and consistent adherence to our
aggregate moderate-to-low risk appetite. This position of strength
enables us to outperform and capture opportunities that may arise
given the current environment.
"Finally, we were honored to again be recognized by J.D. Power
as the highest in customer satisfaction among regional banks for
our mobile app for the fifth consecutive year. This accolade
demonstrates our focus on customers and our innovative digital
capabilities along with a differentiated customer experience. We
believe our long-standing focus on improving the customer
experience is a differentiator and positions us for continued
growth."
The second quarter 2023 earnings materials, including the
detailed earnings press release, quarterly financial supplement,
and conference call slide presentation, are available on the
Investor Relations section of Huntington's website,
http://huntington.com/ In addition, the financial results will be
furnished on a Form 8-K that will be available on the Securities
and Exchange Commission website at www.sec.gov.
Conference Call / Webcast Information
Huntington's senior management will host an earnings conference
call on July 21, 2023, at 9:00 a.m.
(Eastern Time). The call may be accessed via a live
Internet webcast at the Investor Relations section of Huntington's
website, www.huntington.com, or through a dial-in telephone number
at (877) 407-8029; Conference ID #13739594. Slides will
be available in the Investor Relations section of Huntington's
website about an hour prior to the call. A replay of the
webcast will be archived in the Investor Relations section of
Huntington's website. A telephone replay will be available
approximately two hours after the completion of the call through
July 29, 2023 at (877) 660-6853 or (201) 612-7415;
conference ID #13739594.
Please see the 2023 Second Quarter Quarterly Financial
Supplement for additional detailed financial performance
metrics. This document can be found on the Investor Relations
section of Huntington's website, http://www.huntington.com.
About Huntington
Huntington Bancshares Incorporated is a $189 billion asset regional bank holding company
headquartered in Columbus,
Ohio. Founded in 1866, The Huntington National Bank and its
affiliates provide consumers, small and middle‐market businesses,
corporations, municipalities, and other organizations with a
comprehensive suite of banking, payments, wealth management, and
risk management products and services. Huntington operates
more than 1,000 branches in 11 states, with certain businesses
operating in extended geographies. Visit Huntington.com for
more information.
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SOURCE Huntington Bancshares Incorporated