Huntington Bancshares Reports Strong Q3 2025 Earnings with Significant Revenue Growth
Huntington Bancshares Incorporated, based in Columbus, Ohio, reported its earnings for the third quarter of 2025 on October 17. The bank's performance has been notably strong, reflecting a strategic emphasis on loan growth and fee income. With net income reaching $629 million for the quarter, this represents a 17% increase compared to the previous quarter and a 22% rise year-over-year. This growth translates to earnings per share (EPS) of $0.41, which is higher than previous quarters.
Significantly, the results were highlighted by a $39 million increase in net interest income, up 3% from the prior quarter. Year-over-year, net interest income grew by $155 million, marking an 11% increase. Additionally, noninterest income exhibited strong performance, increasing by $157 million, or 33%, from the prior quarter to $628 million. Year-over-year, noninterest income rose by $105 million, representing a 20% growth.
A closer look at loan performance reveals that average total loans and leases grew by $2.8 billion since the previous quarter, reaching $135.9 billion, and experienced a substantial increase of $11.4 billion compared to the same period last year. Average commercial loans increased significantly, with a 3% rise from the previous quarter and a substantial 12% rise year-on-year. Consumer loans also saw an uptick of 1% from the prior quarter and 5% compared to the previous year.
Deposits also reflected positive growth, rising by $1.4 billion, or 1%, compared to the previous quarter, and $8.3 billion, or 5%, year-on-year. However, there was a slight rise in net charge-offs which stood at 0.22% of average total loans and leases, two basis points higher than the prior quarter. Despite this, the nonperforming asset ratio saw an improvement, decreasing to 0.60%. This stability speaks volumes about the bank's effective asset and credit quality management.
Huntington's common equity tier 1 (CET1) risk-based capital ratio was reported at 10.6%, slightly up from 10.5% in the prior quarter. Adjusted CET1, including the effects of accumulated other comprehensive income (AOCI), moved to 9.2%, a rise from 9.0%. The tangible common equity (TCE) ratio improved to 6.8%, reflecting a positive trend in the bank’s capital strength.
Looking ahead, Huntington is poised for further growth with an impending combination with Veritex Holdings, scheduled for October 20, 2025. This merger is expected to significantly enhance Huntington's presence in Texas, aligning with its strategic goals of expanding operations within dynamic markets. Regarding credit quality, CEO Steve Steinour emphasized Huntington's discipline in client selection and proactive management, which has led to an impressive 0.22% in net charge-offs.
"Our third-quarter results demonstrate the power of our differentiated operating model, fueled by targeted investments and disciplined strategy execution," stated Steinour. He further highlighted that their approach blends national expertise with local service, thus enabling organic growth across various markets. With a focus on maintaining healthy growth while managing risks effectively, Huntington is well-positioned to navigate future economic cycles and provide substantial long-term returns to shareholders.
As the bank consistently strengthens its financial metrics and customer base, the upcoming results and upcoming merger will be vital in assessing its growth trajectory forward. Stakeholders and potential investors are advised to pay close attention to Huntington's upcoming earnings conference call, where more insights will be shared about future strategies and expectations for the upcoming quarter.
Significantly, the results were highlighted by a $39 million increase in net interest income, up 3% from the prior quarter. Year-over-year, net interest income grew by $155 million, marking an 11% increase. Additionally, noninterest income exhibited strong performance, increasing by $157 million, or 33%, from the prior quarter to $628 million. Year-over-year, noninterest income rose by $105 million, representing a 20% growth.
A closer look at loan performance reveals that average total loans and leases grew by $2.8 billion since the previous quarter, reaching $135.9 billion, and experienced a substantial increase of $11.4 billion compared to the same period last year. Average commercial loans increased significantly, with a 3% rise from the previous quarter and a substantial 12% rise year-on-year. Consumer loans also saw an uptick of 1% from the prior quarter and 5% compared to the previous year.
Deposits also reflected positive growth, rising by $1.4 billion, or 1%, compared to the previous quarter, and $8.3 billion, or 5%, year-on-year. However, there was a slight rise in net charge-offs which stood at 0.22% of average total loans and leases, two basis points higher than the prior quarter. Despite this, the nonperforming asset ratio saw an improvement, decreasing to 0.60%. This stability speaks volumes about the bank's effective asset and credit quality management.
Huntington's common equity tier 1 (CET1) risk-based capital ratio was reported at 10.6%, slightly up from 10.5% in the prior quarter. Adjusted CET1, including the effects of accumulated other comprehensive income (AOCI), moved to 9.2%, a rise from 9.0%. The tangible common equity (TCE) ratio improved to 6.8%, reflecting a positive trend in the bank’s capital strength.
Looking ahead, Huntington is poised for further growth with an impending combination with Veritex Holdings, scheduled for October 20, 2025. This merger is expected to significantly enhance Huntington's presence in Texas, aligning with its strategic goals of expanding operations within dynamic markets. Regarding credit quality, CEO Steve Steinour emphasized Huntington's discipline in client selection and proactive management, which has led to an impressive 0.22% in net charge-offs.
"Our third-quarter results demonstrate the power of our differentiated operating model, fueled by targeted investments and disciplined strategy execution," stated Steinour. He further highlighted that their approach blends national expertise with local service, thus enabling organic growth across various markets. With a focus on maintaining healthy growth while managing risks effectively, Huntington is well-positioned to navigate future economic cycles and provide substantial long-term returns to shareholders.
As the bank consistently strengthens its financial metrics and customer base, the upcoming results and upcoming merger will be vital in assessing its growth trajectory forward. Stakeholders and potential investors are advised to pay close attention to Huntington's upcoming earnings conference call, where more insights will be shared about future strategies and expectations for the upcoming quarter.
Topics Financial Services & Investing）
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