Huntington Reports Net Income of $243M in Q4

COLUMBUS, Ohio – Huntington Bancshares Inc. on Friday reported $243 million in net income for the fourth quarter of 2023.

That represents a decrease of $402 million over the past year, leading to a drop to 15 cents per common share. That was lower by 20 cents from last quarter and down from 27 cents from a year ago.

Net interest income decreased $52 million, or 4%, from the prior quarter and $146 million, or 10%, from a year earlier.

Noninterest income decreased by 20%, or $104 million, from the prior quarter to $405 million. 

Noninterest income in the fourth quarter was reduced by $74 million, compared with an increase of $33 million in the third quarter due to the mark-to-market on pay-fixed swaptions.

Average total deposits increased $1.5 billion, or 1%, from the prior quarter and $4 billion from a year ago.

Huntington completed a synthetic Credit Risk Transfer during the fourth quarter related to about a $3 billion portfolio of on-balance sheet prime indirect auto loans as part of the company’s capital optimization strategy. The transaction reportedly reduced risk-weighted assets by about $2.4 billion.

“We are pleased to deliver fourth quarter results highlighted by the continuation of our organic growth efforts with sustained deposit and loan growth, as well as the further expansion of Common Equity Tier 1 capital,” said Steve Steinour, Huntington chairman, president and CEO. “We are entering the new year from a position of strength with robust liquidity and capital, which allows us to remain focused on executing our growth strategy and serving our customers. We are maintaining our disciplined approach to managing credit quality, consistent with our aggregate moderate-to-low risk appetite, and believe Huntington is well-positioned as we operate through this dynamic environment.”

Some other highlights of the fourth-quarter report included increases in average total loans and leases by $445 million from the prior quarter to $121.2 billion, which is also an increase of $2.3 billion from the same quarter a year ago. Common Equity Tier 1 risk-based capital ratio increased 15 basis points to 10.25%, while Adjusted Common Equity Tier I was at 8.58%, an increase of 58 basis points from the prior quarter. Tangible common equity ratio increased 44 basis points from the prior quarter to 6.14% and increased 59 basis points from a year ago.
The complete report can be found HERE.

Published by The Business Journal, Youngstown, Ohio.