Huntington Q2 Earnings Match Estimates, NII Rises Y/Y, Fee Income Down

Huntington Bancshares Incorporated HBAN reported second-quarter 2025 adjusted earnings per share (EPS) of 38 cents, which matched the Zacks Consensus Estimate. In the prior-year quarter, the company reported EPS of 30 cents.

The result included 4 cents of impact to EPS, resulting from a $58 million decrease in pre-tax earnings from a securities repositioning.

Results have reflected improvements in net interest income (NII) and average loan and deposit balances. However, an increase in non-interest expenses and a decline in non-interest income were headwinds.

The company reported a net income attributable to common shareholders (GAAP basis) of $536 million in the quarter, which increased from $474 million reported in the prior-year quarter.

HBAN’s Revenues & Expenses Increase

Total quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 10.8% year over year to $2.01 billion in the second quarter. The top surpassed the Zacks Consensus Estimate of $1.98 billion.

NII (FTE basis) was $1.48 billion, up 12% from the prior-year quarter’s tally. The increase was primarily due to a rise in average earning assets and net interest margin (NIM). NIM jumped 12 basis points to 3.11% in the reported quarter.

Non-interest income moved down 4% year over year to $471 million. 

Non-interest expenses were up 7% year over year to $1.19 billion. The rise was mainly due to an increase in personnel costs, outside data processing and other services costs, net occupancy expenses and marketing costs.

The efficiency ratio was 59%, down from the year-ago quarter’s 60.8%. A fall in the efficiency ratio indicates an increase in profitability.

HBAN’s Loans and Deposits Increase

As of June 30, 2025, average loans and leases at Huntington inched up 2% sequentially to $133.2 billion. Average total deposits increased 1% to $163.4 billion.

HBAN’s Credit Quality: Mixed Bag

Net charge-offs were $66 million, down from $90 million reported in the prior-year quarter. The quarter-end allowance for credit losses increased 3.8% to $2.52 billion from the prior-year quarter. Total non-performing assets were $852 million as of June 30, 2025, up 9.2% from the prior-year quarter.

Net charge-offs/average total loans and leases were 0.20%, down from 0.29% in the prior-year quarter.

In the second quarter, the company recorded a provision for credit losses of $103 million, which increased 3% from the year-ago quarter.

HBAN’s Capital Ratios: Mixed Bag

The common equity tier 1 risk-based capital ratio was 10.5% in the second quarter, up from 10.4% in the year-ago period.

The regulatory Tier 1 risk-based capital ratio was 11.8%, down from 12.1% in the comparable period in 2024.

The tangible common equity to tangible assets ratio in the second quarter was 6.6%, which increased from 6% in the year-ago quarter.

Our View on HBAN

Huntington’s inorganic expansion moves are likely to bolster its revenue growth in the near term. Also, its efforts to expand its commercial banking capabilities and enhance its footprint in key growth markets, North Carolina and South Carolina and Texas, will support its financials in the long run. However, rising expenses and provisions are a concern for Huntington.

Huntington Bancshares Incorporated Price, Consensus and EPS Surprise

Huntington Bancshares Incorporated price-consensus-eps-surprise-chart | Huntington Bancshares Incorporated Quote

Currently, Huntington carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Banks

Synovus Financial Corp. SNV reported second-quarter 2025 adjusted EPS of $1.48, which surpassed the Zacks Consensus Estimate of $1.25. This compares favorably with the earnings of $1.16 per share a year ago. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

SNV’s results benefited from strong year-over-year growth in NII and non-interest revenues, along with a fall in provisions for credit losses. Also, improving loan balances were a tailwind. An increase in expenses, however, was a major headwind.

First Horizon Corporation’s FHN second-quarter 2025 adjusted EPS (excluding notable items) of 45 cents surpassed the Zacks Consensus Estimate of 41 cents. This compares favorably with 36 cents in the year-ago quarter.

FHN’s results benefited from a rise in NII and non-interest income, along with a decline in expenses. Also, lower provisions and a rise in loans and deposit balances were other positives. 

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This article originally published on Zacks Investment Research (zacks.com).

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