Huntington Bancshares Incorporated (HBAN) is slated to report first-quarter 2025 results on April 17, before the opening bell. The company’s quarterly revenues and earnings are expected to have increased year over year.In the last reported quarter, the bank recorded a positive earnings surprise of 9.7%. Results reflected improvements in fee income and net interest income (NII).  However, an increase in the allowance for credit losses was a headwind.  HBAN has an impressive earnings surprise history. Its ear ...

Core Viewpoint - Huntington Bancshares (HBAN) is expected to report quarterly earnings of $0.31 per share, reflecting a 10.7% increase year-over-year, with revenues projected at $1.9 billion, a 7.3% increase compared to the previous year [1] Earnings Projections - The consensus EPS estimate has been adjusted downward by 1.8% over the past 30 days, indicating a reassessment by analysts [1][2] - Analysts emphasize the importance of revisions to earnings projections as they are closely linked to investor behavior and stock price performance [2] Key Financial Metrics - Analysts predict an 'Efficiency Ratio' of 61.3%, down from 63.7% a year ago [3] - The 'Net Interest Margin (FTE)' is estimated to remain stable at 3.0%, compared to the previous year's figure of 3% [4] - 'Average Balance - Total earning assets' is projected to be $187.26 billion, up from $173.76 billion year-over-year [4] - The 'Tier 1 Leverage Ratio' is expected to be 8.5%, down from 8.9% in the same quarter last year [4] - The 'Tier 1 Risk-Based Capital Ratio' is forecasted to remain at 12.0%, unchanged from the previous year [5] Non-Interest Income and Fees - 'Total Non-Interest Income' is expected to reach $511.87 million, up from $467 million in the same quarter last year [5] - 'Mortgage banking income' is projected at $31.15 million, slightly up from $31 million a year ago [6] - 'Customer deposit and loan fees' are estimated at $85.36 million, compared to $77 million last year [6] - 'Payments and cash management revenue' is forecasted at $154.85 million, up from $146 million in the same quarter last year [7] - 'Wealth and asset management revenue' is expected to reach $94.48 million, compared to $88 million last year [7] - 'Capital markets and advisory fees' are projected at $72.25 million, up from $56 million a year ago [8] - 'Net interest income - FTE' is expected to be $1.38 billion, compared to $1.30 billion in the same quarter last year [8] Stock Performance - Over the past month, shares of Huntington Bancshares have declined by 12.6%, while the Zacks S&P 500 composite has decreased by 3.6% [9] - Currently, HBAN holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [10]

COLUMBUS, Ohio, April 2, 2025 /PRNewswire/ -- Huntington Bancshares Incorporated (Nasdaq: HBAN) will release first quarter 2025 financial results prior to the market opening on Thursday, April 17, 2025. A news release and supporting financial data will be available at that time on the Investor Relations section of the company's website (www.huntington-ir.com).The Company will host a conference call to review quarterly financial results at 11 a.m. ET.Conference Call / Webcast InformationThe first quarter 202 ...

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Core Insights - Capstone Partners' Annual Consumer M&A Report indicates a positive outlook for the Consumer industry in 2025, driven by improvements in M&A activity and valuations in 2024 [1][2] M&A Activity and Valuations - In 2024, Consumer M&A volume rebounded year-over-year, with a slight increase in overall M&A valuations, primarily driven by corporations making strategic acquisitions [2] - Approximately 70% of all consumer M&A transactions in 2024 were conducted by corporations, compared to around 30% from private equity funds, signaling a favorable view of M&A as a return on investment strategy [2] Sector Performance - Public consumer stocks have shown inconsistent performance, with only Tactical, Home Goods, E-Commerce, and Sports Technology sectors outperforming the S&P 500 return of 24% in 2024 [3] - Key economic indicators such as moderating inflation and healthy GDP growth were noted, with the ISM Manufacturing Index rising to 50.9 in January 2025, indicating the first expansion in the U.S. Manufacturing sector in 26 months [3] Market Sentiment - Nearly two-thirds of middle market CEOs have a positive outlook for the Consumer industry in 2025, an increase from 60% in the previous year [3] - A rotation from Consumer Staples to Consumer Discretionary is being observed, with discretionary companies recently outperforming staples, suggesting potential value appreciation in strong markets [4] Future Outlook - The report suggests that a combination of over $1 trillion in private equity dry powder and public consumer companies actively pursuing acquisitions could ignite a rally in M&A activity in 2025 [4] - Expectations for Consumer industry performance and M&A in North America in 2025 are optimistic, with specific sectors poised to attract buyer interest [6]

Core Insights - Crista Gilmore has been promoted to Managing Director at Capstone Partners, reflecting her dedication and expertise in the Building Products & Construction Services Group [1][6] - Gilmore has over 15 years of experience in mergers & acquisitions advisory, public accounting, valuation, and corporate finance, specializing in sell-side transactions within the Architecture, Engineering, and trades sectors [2][4] - She has been recognized as an Emerging Leader by The M&A Advisor in 2021, highlighting her significant achievements in the industry [5] Company Overview - Capstone Partners is a middle market investment banking firm with over 20 years of experience, providing a range of investment banking and financial advisory services tailored to middle market companies [7] - The firm has more than 175 professionals across the U.S. and operates with 12 dedicated industry groups, delivering sector-specific expertise [7] - Capstone is a subsidiary of Huntington Bancshares Incorporated, listed on NASDAQ under the ticker HBAN [7]

Core Insights - Capstone Partners released its Annual Industrials M&A Report, providing insights into public market valuations, macroeconomic conditions, M&A activity, and a 2025 outlook for the industry [1] Economic Overview - The U.S. Industrials industry faced a complex macroeconomic environment in 2024, with real GDP growth at 2.8%, down from 2.9% in 2023, primarily due to a slowdown in business investment [2] - Consumer spending remained robust, with the Personal Consumption Expenditure (PCE) Price index increasing by 5.3% year-over-year, driven by rising incomes and improved labor market conditions [2] - Construction spending rose by 4.3% year-over-year to $2.2 trillion, supported by the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) [2] M&A Activity - Private equity firms were active in the Industrials M&A market, with strategic transactions making up 58.6% of deals in 2024, while private equity buyers accounted for 41.4% of deal activity, down from 43.7% in 2023 [2] - A valuation gap due to sellers' slow adjustment of pricing expectations contributed to stalled transactions [2] Valuation Trends - M&A valuations averaged 9.0x EV/EBITDA in 2024, a decrease from the previous year, while the Dow Jones Industrial Average ended at 16.4x EV/EBITDA, up from 14.7x in 2023 [3] - High-demand segments like Engineered Products (18.1x) and HVAC (17.1x) performed well, while cyclical segments such as Environmental Health & Safety (11.6x) and commodity-based manufacturing like Metals (7.5x) and Chemicals (7.3x) faced pressure [3]

Core Viewpoint - Huntington Bancshares, Inc. (HBAN) has shown strong stock performance, gaining 10.6% over the past six months, outperforming its industry growth of 9.5% [1]. Company Overview - HBAN has a market capitalization of $23.3 billion and is focusing on growth strategies and financial performance to enhance its market position [3]. Growth Strategies and Initiatives - The company is implementing a multi-faceted growth strategy that includes geographic expansion, strengthening commercial banking, and enhancing its wealth management business [4]. - HBAN plans to expand its banking franchise in North and South Carolina, aiming to hire over 350 employees and open around 55 retail branches by 2030 [5]. - The bank is also expanding its commercial banking capabilities, with a focus on middle market, SBA, and healthcare lending in the Carolinas and Texas [7][8]. - In wealth management, HBAN aims to double its business in the next five years by deepening customer relationships and expanding advisory services [10]. Financial Performance - The Federal Reserve's rate cuts are expected to support HBAN's net interest income (NII), which recorded a four-year CAGR of 10.5% from 2019 to 2024 [12][13]. - For 2025, HBAN projects NII to rise by 4-6% from $5.34 billion in 2024, driven by an increase in earning assets [14]. - As of December 31, 2024, HBAN's liquidity totaled $13.3 billion, with total debt of $16.6 billion, indicating a solid financial position [15]. Dividend and Valuation - HBAN currently pays a dividend of 62 cents per share, yielding 3.87%, with a payout ratio of 50% [16]. - The stock is trading at a forward price/earnings (P/E) ratio of 11.16X, which is a discount compared to the industry average of 11.36X and peers [18][21]. Sales and Earnings Estimates - Zacks Consensus Estimates project sales growth of 7.23% for the current quarter and 5.90% for the current year [24]. - However, the company faces rising non-interest expenses, which recorded a CAGR of 10.9% over the last five years, potentially impacting profitability [26].

Group 1 - Huntington Bancshares Incorporated will participate in the RBC Capital Markets Financial Institutions Conference on March 5, 2025, with presentations by CFO Zach Wasserman and Chief Enterprise Payments Officer Amit Dhingra [1] - The presentation will cover business trends, financial performance, and strategic initiatives, including forward-looking statements [1] - Interested investors can access the live audio webcast on Huntington's investor relations website, with a replay available afterward [2] Group 2 - Huntington Bancshares is a regional bank holding company with $204 billion in assets, headquartered in Columbus, Ohio [3] - Founded in 1866, Huntington provides a comprehensive suite of banking, payments, wealth management, and risk management products and services to various clients [3] - The company operates 978 branches across 12 states, with some businesses extending into additional geographies [3]

Branch Operations and Market Presence - As of December 31, 2024, the company operates 978 full-service branches across multiple states, including Ohio, Colorado, and Florida[18]. - The company holds a 43% market share in Columbus, OH, with deposits totaling $44.814 billion[35]. Banking Segments and Services - The Consumer & Regional Banking segment offers a wide array of financial products, including deposits, lending, and investment management, aimed at both consumer and business customers[20]. - The Commercial Banking segment serves mid-market to large corporates, providing a comprehensive set of product offerings, including treasury management and capital markets[26]. Customer Experience and Innovation - The company emphasizes a "Fair Play" banking philosophy, which includes features like 24-Hour Grace® and Asterisk-Free Checking® to enhance customer experience[33]. - The company is actively investing in technology and innovation to remain competitive against FinTechs and other financial service providers[37]. - The company has developed unique payment solutions, such as Huntington ChoicePay, to cater to diverse client segments[26]. Regulatory Environment and Capital Requirements - Regulatory scrutiny has increased following the banking turmoil in early 2023, impacting merger and acquisition activities[40]. - The company is subject to extensive regulation by various federal and state agencies, including the Federal Reserve and OCC[38]. - Huntington's CET1 risk-based capital ratio was 10.5% as of December 31, 2024, exceeding the minimum requirement of 4.5%[70]. - The Tier 1 risk-based capital ratio for Huntington was 11.9% as of December 31, 2024, surpassing the minimum requirement of 6.0%[70]. - The total risk-based capital ratio for Huntington was 14.3% as of December 31, 2024, well above the minimum requirement of 8.0%[70]. - Huntington is subject to a stress capital buffer (SCB) of 2.5% effective October 1, 2024[68]. - The Bank's Tier 1 leverage ratio was 8.9% as of December 31, 2024, exceeding the well-capitalized standard of 5.0%[70]. - Huntington's regulatory capital ratios were above the well-capitalized standards and met applicable capital buffer requirements as of December 31, 2024[72]. - The U.S. banking agencies proposed a rule to implement the Basel III endgame agreement, which aims to significantly increase capital requirements for large banks[73]. - Huntington is required to submit an annual capital plan to the Federal Reserve, which includes an assessment of expected uses and sources of capital[75]. - The Federal Reserve has not yet revised the well-capitalized standard for BHCs to reflect the higher capital requirements imposed under the U.S. Basel III capital rules[66]. - Huntington has the ability to provide additional capital to the Bank to maintain the Bank's risk-based capital ratios at well-capitalized levels[71]. - Huntington's indicative SCB requirement for its 2024 Capital Plan is set at a minimum of 2.5%, down from the previous 3.2%[78]. - Huntington is authorized to make capital distributions without prior Federal Reserve approval, provided it complies with capital rules[79]. - The Bank submitted its most recent resolution plan to the FDIC on November 30, 2022, with the next submission due by July 1, 2025[85]. - Huntington's ability to declare dividends is limited by federal banking law and Federal Reserve regulations, requiring sufficient net income[81]. - The Federal Reserve may require Huntington to provide financial assistance to the Bank in times of financial distress[86]. - Huntington's capital distributions depend on receiving dividends from its subsidiaries, which are subject to various federal limitations[80]. - The Federal Reserve evaluates Huntington's capital planning process through regular supervisory reviews[77]. - Huntington must maintain applicable capital buffer requirements to avoid restrictions on capital distributions[82]. Cybersecurity and Compliance - The Bank is subject to extensive cybersecurity and data privacy regulations, including the GLBA and its amendments[96]. - Huntington's compliance programs are in place to adhere to the Volcker Rule, which restricts certain trading activities[84]. - The CISA law allows companies to monitor their own systems and carry out defensive measures against cyber-attacks[98]. - The CCPA imposes civil penalties of up to $2,500 for each violation and up to $7,500 for intentional violations[101]. - Huntington's cybersecurity practices are integrated into its overall Enterprise Risk Management (ERM) approach, with cybersecurity risks identified as core enterprise risks[214]. - The company conducts ongoing assessments and testing of its cybersecurity processes, including third-party evaluations and independent reviews[215]. - Huntington maintains a global cybersecurity threat operation aimed at promptly detecting and responding to cybersecurity incidents[215]. - The company has established incident response plans that are tested at least annually to address potential cybersecurity incidents[215]. - The Technology Committee of the Board oversees the management of cybersecurity risks and receives regular updates on the threat environment and vulnerability assessments[216]. - The Chief Information Security Officer provides quarterly updates to the Technology Committee on cybersecurity matters, ensuring the Board is informed of any material incidents[216]. - Huntington employs technical safeguards such as firewalls and intrusion detection systems to protect its information systems from cybersecurity threats[215]. - The company emphasizes collaboration with public and private entities to identify and assess cybersecurity risks[215]. - Ongoing training is provided to personnel regarding cybersecurity threats, tailored to their roles and responsibilities[215]. Community Commitment and Social Responsibility - Huntington Bancshares has committed $40 billion over five years to strengthen small businesses and foster opportunities within its footprint[124]. - The Lift Local Business® program has exceeded its commitment by funding $153 million in loans through September 30, 2024[124]. - Huntington committed to providing $24 billion in affordable housing financing and consumer lending, having reached $18.2 billion of this commitment by October 31, 2024[125]. - Huntington expanded its Small Business lending programs with a commitment of $10 billion, achieving $8.2 billion by October 31, 2024[125]. - The company committed $6.5 billion in community development loans and investments, exceeding this with $7.8 billion funded by October 31, 2024[125]. - A $16 billion commitment to diverse borrowers and communities has reached $14.7 billion by October 31, 2024, aimed at advancing systemic change[125]. - The Bank received the highest possible CRA rating of "Outstanding" in its most recent examination[110]. - The CRA final rule, effective April 1, 2024, is expected to significantly increase the thresholds for large banks to receive "Outstanding" ratings in future evaluations[111]. Economic and Operational Risks - Economic uncertainties, including inflation and rising interest rates, could adversely affect Huntington's business and financial condition[145]. - Changes in interest rates could reduce net interest income and negatively impact the value of loans and securities, affecting cash flows and financial results[148]. - Inflation could negatively impact profitability and stock price, potentially leading to increased default rates and credit losses[155]. - The company operates in a highly competitive environment, facing pressure from larger competitors and non-bank entities that may have greater flexibility[156]. - Liquidity is primarily sourced from a large supply of deposits, which is dependent on customer confidence and regulatory conditions[158]. - Access to capital markets is crucial for meeting cash flow requirements and funding corporate activities; disruptions could adversely affect operations[161]. - A reduction in credit ratings could increase the cost of funds and limit access to liquidity and capital[164]. - Global economic instability and geopolitical matters may adversely impact financial condition and operational results[165]. - Operational risks include potential failures or breaches of internal and third-party systems, which could disrupt business operations[166]. - Cybersecurity risks are significant, with potential for data breaches that could harm business reputation and lead to legal exposure[170]. - The company may need to invest significantly in updating systems to mitigate operational risks and ensure compliance with regulations[169]. - Regulatory changes could impact the availability of dividends from subsidiaries, affecting the company's liquidity and ability to pay dividends[160]. - The reliance on third-party service providers introduces risks that could adversely affect the ability to deliver products and services[182]. - Climate change poses physical and transition risks that could disrupt operations and increase expenses, necessitating a formal climate risk program[187]. - The introduction of AI into business operations may expose the company to new legal, regulatory, and reputational risks, potentially impacting operational efficiency[188]. - The company may not have adequate insurance coverage to compensate for losses from a major cyber-attack or information breach[174]. - Negative public opinion resulting from cybersecurity incidents could damage the company's reputation and customer relationships[176]. - The integration of acquired businesses may face challenges, including retaining customer relationships and achieving anticipated efficiencies[177]. - Changes in accounting policies and standards could affect the financial reporting and condition of the company[184]. - The banking industry is highly regulated, with supervision from various federal and state regulators, including the Federal Reserve and OCC, which imposes minimum capital requirements and limits on business activities[191]. - Compliance with laws and regulations can be costly, and failure to comply may result in fines, penalties, and restrictions on business activities, adversely affecting financial results[190]. - The Federal Reserve conducts the CCAR assessment process to evaluate capital adequacy, which may require higher capital levels and impact the ability to pay dividends or repurchase stock[209]. - Regulatory scrutiny has increased regarding consumer practices, leading to potential investigations and enforcement actions that could significantly impact revenue and increase compliance costs[192]. - The company faces legal risks, with high volumes of claims and potential substantial legal liabilities that could adversely affect financial results and reputation[197]. - Changes in regulatory frameworks, particularly concerning AI and data privacy, may require significant adjustments to business practices and incur additional costs[201]. - The company must maintain a capital conservation buffer (CCB) of 2.5% and may face higher capital requirements based on size and risk profile, impacting operational flexibility[210]. - The evolving regulatory environment may lead to increased compliance costs and operational complexities, potentially affecting profitability and business opportunities[193]. - The company is subject to heightened scrutiny regarding anti-money laundering compliance, with significant penalties for violations that could lead to financial losses[199]. - The competitive landscape is intensifying due to the rise of FinTech companies, necessitating continuous adaptation of products and services to meet changing consumer preferences[205].