This article first appeared on GuruFocus .
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Earnings Per Share (EPS):$0.25; Adjusted EPS $0.37, up 9% year over year.
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Pre-Provision Net Revenue (PPNR):Increased 36% on an adjusted basis.
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Tangible Book Value Growth:9% growth.
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Return on Tangible Common Equity (ROTCE):Consistently delivered at 16% to 17% target range; raised target to 18% to 19% for 2027.
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Net Interest Income:Increased $301 million or 18.7% sequentially; up 33% year over year.
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Net Interest Margin (NIM):3.24%, up 9 basis points from the prior quarter.
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Fee Income Growth:18% year over year on an adjusted basis.
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Payments Revenue Growth:Increased 21% year over year.
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Wealth Management Revenue Growth:19% growth.
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Capital Markets Revenue Growth:Record quarter; nearly 60% growth year over year excluding acquisitions.
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Loan Growth:Loan balances increased 1.5% or $2.2 billion excluding Cadence.
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Deposit Growth:Core deposits increased $3.8 billion or 2.3% quarter over quarter excluding Cadence.
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Liquidity Coverage Ratio:118% unmodified; contingent liquidity represents approximately 173% of uninsured deposits.
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Adjusted CET1 Ratio:Well above regulatory minimums and within 9% to 10% operating range.
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Net Charge-Offs:26 basis points.
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Share Repurchases:$250 million year-to-date; new $3 billion share repurchase authorization approved.
Release Date: April 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Huntington Bancshares Inc ( NASDAQ:HBAN ) delivered a strong first quarter with 9% earnings per share growth and 36% pre-provision net revenue growth.
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The company has a diversified super regional bank model with multiple growth engines, including successful partnerships and acquisitions.
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Huntington Bancshares Inc ( NASDAQ:HBAN ) has strong liquidity, with available contingent liquidity representing approximately 173% of uninsured deposits.
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The integration of recent acquisitions, such as Veritex and Cadence, is on track, contributing to cost and revenue synergies.
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The company is generating significant capital, supporting share buybacks and consistent shareholder returns, with a new $3 billion share repurchase authorization.
Negative Points
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The macroeconomic environment is uncertain, with potential impacts on economic growth and customer confidence.
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Net interest income is expected to be at the low end of the guided range due to lower loan growth and modestly lower net interest margin.
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There is increased competition in deposit markets, which may impact deposit costs and growth.
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The company is experiencing some turnover and cultural integration challenges with recent acquisitions.
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Huntington Bancshares Inc ( NASDAQ:HBAN ) is cautious about commercial real estate, particularly construction, and plans to reduce exposure over time.
Q & A Highlights
Q: Can you elaborate on the balance sheet optimization project and its goals? A: Zachary Wasserman, CFO, explained that the optimization is aimed at aligning with the current economic environment, which is slightly softer. The focus is on reducing commercial real estate exposure, particularly construction, and ensuring loan growth is matched with core deposit growth. This strategy is expected to bring net interest income (NII) to the low end of the growth range, offset by stronger fees and lower expenses.
Q: Why is there a $3 billion buyback authorization when the current plan is $550 million? A: Wasserman noted that having an evergreen authorization is becoming a best practice for flexibility over multiple years. The current guidance is for $550 million in share repurchases this year and $1.1 billion to $1.2 billion next year. The Basel III endgame is expected to provide additional share repurchase opportunities in 2027.
Q: Can you discuss the incremental cost actions and retention of Cadence producers? A: Wasserman highlighted a $50 million baseline tuning action to bring expense growth to the low end of the range. Brant Standridge, President of Consumer and Regional Banking, stated that overall retention is strong, with successful leadership retention and new talent hiring. Some turnover is expected and planned, with a focus on aligning with Huntington's credit philosophy.
Q: What is the potential RWA deflation under Basel III, and why is the stock underperforming despite positive guidance? A: Wasserman indicated a 7.7% reduction in RWA, translating to an 80 basis point CET1 benefit. The stock's underperformance is frustrating, but the company focuses on delivering strong results, expecting that the valuation will recover as the market recognizes their performance.
Q: How does the competitive environment affect NII guidance, and what flexibility exists for expense management? A: Wasserman noted that the NII guidance reflects lower loan growth and modestly lower net interest margin due to slightly higher deposit costs and lower asset yields. The company has a contingency plan for expenses, with flexibility to adjust investments and efficiency programs as needed.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
