Huntington Reports $460M in Q1 Income, Declares Quarterly Dividend

COLUMBUS, Ohio — Huntington Bancshares Inc., the holding company of Huntington National Bank, reported first quarter net income of $460 million, or $0.29 per common share, a decrease of $72 million from the same quarter in 2021.

According to its earnings statement released Thursday morning, Huntington’s first quarter benefited from the acquisition of TCF Financial Corp. in June 2021, as well as organic growth.

“We delivered exceptional results this quarter, driven by continued execution of our strategic initiatives and loan growth across our businesses,” said Steve Steinour, chairman, president and CEO. “Additionally, we saw net interest income expansion, deposit growth and demonstrated disciplined expense management with continued sequential quarter reductions in noninterest expense, driving record PPNR.”

Pre-Provision Net Revenue (PPNR) growth, excluding Notable Items, increased 4% from the prior quarter, according to the release.

On March 1, Huntington announced the signing of a definitive agreement to acquire Capstone Partners, a top tier middle market investment bank and advisory firm. The transaction is expected to close toward the end of the second quarter.

“During the quarter we announced a definitive agreement to acquire Capstone Partners, a top tier middle market investment bank and advisory firm, which will add scale in key verticals and significant capabilities to Huntington allowing us to serve our customers throughout their full business lifecycle,” Steinour said.

Earnings per common share for the quarter were $0.29, an increase of $0.03 from the prior quarter. Excluding $0.03 per common share after tax of Notable Items, adjusted earnings per common share were $0.32. Specifically, $37 million of after tax acquisition-related expenses.

Return on average assets was 1.05%, return on average common equity was 10.4%, return on average tangible common equity (ROTCE) was 15.8%, and adjusted ROTCE was 17.1%.

Net interest income increased $14 million, or 1%, from the prior quarter, reflecting increased average earning assets and net interest margin expansion of 3 basis points to 2.88%.

Noninterest expense decreased $168 million from the fourth quarter, or 14% to $1.1 billion. Excluding Notable Items, noninterest expense decreased $27 million, or 3%, to $1.0 billion reflecting realization of cost synergies related to the TCF acquisition.

Average total loans and leases increased $1.7 billion, or 2%, to $111.1 billion. Excluding the decrease in PPP loans, average total loans and leases increased $2.6 billion, or 2% from the prior quarter.

Average total commercial loans increased 2%. Excluding the decrease in PPP loans, average total commercial loans increased 4%.

Average deposits increased $614 million. Ending deposits increased $3.7 billion or 3% from the prior quarter.

Also on Thursday, Huntington’s board of directors announced a quarterly cash dividend of $0.155 per common share of stock, which is unchanged from the prior quarter. The common stock cash dividend is payable July 1, 2022, to shareholders of record on June 17, 2022.

The board also declared quarterly cash dividends on five series of its preferred stock, including:

  • Floating Rate Series B Non-Cumulative Perpetual Preferred Stock: $9.36072535 per share (equivalent to $0.2340181 per depositary receipt share)
  • 5.70% Series E Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock: $1,425.00 per share (equivalent to $14.25 per depositary receipt share)
  • 5.625% Series F Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock: $1,406.25 per share (equivalent to $14.0625 per depositary share)
  • 4.450% Series G Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock: $1,112.50 per share (equivalent to $11.1250 per depositary share)
  • 4.5% Series H Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock: $11.25 per share (equivalent to $0.28125 per depositary share)

All five preferred stock cash dividends are payable July 15, 2022, to their respective shareholders of record on July 1, 2022.

Huntington Bancshares holds $177 billion in assets and operates more than 1,000 branches in 11 states.

Copyright 2022 The Business Journal, Youngstown, Ohio.