Q3 Results Highlighted by Sustained Core
Deposit Growth, Expansion of CET1 Capital, and Strong Credit
Quality
2023 Third-Quarter Highlights:
- Earnings per common share (EPS) for the quarter were
$0.35, flat from the prior quarter,
and were lower by $0.04 from the
year-ago quarter. Excluding the after tax impact of Notable Items,
adjusted earnings per common share were $0.36.
- Net interest income increased $22
million, or 2%, from the prior quarter, and decreased
$36 million, or 3%, from the year-ago
quarter.
- Pre-Provision Net Revenue (PPNR) decreased $4 million from the prior quarter to $798 million, and decreased $59 million, or 7%, from the year-ago quarter.
Excluding Notable Items, adjusted PPNR increased $6 million, or 1%, from the prior quarter to
$813 million, and decreased
$54 million, or 6%, from the year-ago
quarter.
- Cash and cash equivalents and available contingent borrowing
capacity of $91 billion at
September 30, 2023, representing 204%
of uninsured deposits.
- Average total deposits increased $2.6
billion, or 2%, from the prior quarter and $2.1 billion, or 1%, from the year-ago quarter.
- Ending total deposits increased $839
million, or 1%, from the prior quarter and $2.6 billion, or 2%, from the year-ago
quarter.
- Ending core deposits increased $1.3
billion, or 1%, 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 decreased $561 million from the prior quarter to
$120.8 billion, and increased
$3.8 billion, or 3%, from the
year-ago quarter.
- Average total commercial loans and leases decreased
$1.2 billion, or 2%, and average
total consumer loans increased $677
million, or 1%, from the prior quarter.
- Net charge-offs of 0.24% of average total loans and leases for
the quarter, below the through the cycle target range.
- Nonperforming asset ratio of 0.52%.
- Allowance for credit losses (ACL) of $2.4 billion, or 1.96%, of total loans and leases
at quarter end.
- Common Equity Tier 1 (CET1) risk-based capital ratio increased
28 basis points to 10.10%, continuing the trend of capital
expansion.
- Tangible common equity (TCE) ratio decreased 10 basis points
from the prior quarter to 5.70%, and increased 38 basis points from
a year ago.
- Huntington was ranked first nationally for SBA 7(a) loan
originations by volume for the sixth year in a row for SBA fiscal
year 2023 and the 15th year in a row that Huntington has been the
largest originator, by volume, of SBA 7(a) loans within
footprint.
COLUMBUS, Ohio, Oct. 20,
2023 /PRNewswire/ -- Huntington Bancshares
Incorporated (Nasdaq: HBAN) reported net income for the 2023 third
quarter of $547 million, or
$0.35 per common share, a decrease of
$47 million, or $0.04, from the year-ago quarter.
Return on average assets was 1.16%, return on average common
equity was 12.4%, return on average tangible common equity (ROTCE)
was 19.5%.
CEO Commentary:
"We are pleased to deliver third quarter results highlighted by
our top tier return profile and continued expansion of common
equity tier 1 capital, which we drove to above 10%," said
Steve Steinour, chairman, president,
and CEO. "We remain focused on executing our growth strategy, and
leveraging the strength of our balance sheet to continue serving
customers across the company. In the third quarter, we delivered
another sequential increase in core deposits, further bolstered our
leading liquidity position, added to our top tier credit reserves,
and continued our disciplined management of credit quality
consistent with our aggregate moderate-to-low risk appetite.
"Huntington is exceptionally well-positioned to thrive as we
manage through the dynamic environment. We continue to
deliver on our strategy while taking actions to position the
company for sustained growth in the years ahead.
"Finally, we were once again named as the number one SBA lender
in the U.S. for the sixth consecutive year for SBA 7(a) loan
originations by volume. We are committed to helping small
businesses by providing access to capital to support their
growth."
The third 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 October 20, 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 #13741301. 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 October 28,
2023 at (877) 660-6853 or (201) 612-7415; conference ID
#13741301.
Please see the 2023 Third 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 $187 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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