Huntington Bancshares Inc (HBAN) Q3 2023 Earnings: Solid Core Deposit Growth and CET1 Capital ...
HBAN reported Q3 2023 earnings per share (EPS) of $0.35, flat from the prior quarter and lower by $0.04 from the year-ago quarter.
Net interest income increased $22 million, or 2%, from the prior quarter, and decreased $36 million, or 3%, from the year-ago quarter.
Average total deposits increased $2.6 billion, or 2%, from the prior quarter and $2.1 billion, or 1%, from the year-ago quarter.
Common Equity Tier 1 (CET1) risk-based capital ratio increased 28 basis points to 10.10%, continuing the trend of capital expansion.
On October 20, 2023, Huntington Bancshares Inc (NASDAQ:HBAN) released its third-quarter earnings report for 2023. The report highlighted sustained core deposit growth, expansion of CET1 Capital, and strong credit quality. The company reported earnings per common share (EPS) for the quarter at $0.35, which remained flat from the prior quarter and was lower by $0.04 from the year-ago quarter.
Financial Performance
HBAN's net interest income increased by $22 million, or 2%, from the prior quarter, and decreased by $36 million, or 3%, from the year-ago quarter. Pre-Provision Net Revenue (PPNR) decreased $4 million from the prior quarter to $798 million, and decreased $59 million, or 7%, from the year-ago quarter. Excluding Notable Items, adjusted PPNR increased $6 million, or 1%, from the prior quarter to $813 million, and decreased $54 million, or 6%, from the year-ago quarter.
Deposit and Loan Growth
Average total deposits increased $2.6 billion, or 2%, from the prior quarter and $2.1 billion, or 1%, from the year-ago quarter. Ending total deposits increased $839 million, or 1%, from the prior quarter and $2.6 billion, or 2%, from the year-ago quarter. Average total loans and leases decreased $561 million from the prior quarter to $120.8 billion, and increased $3.8 billion, or 3%, from the year-ago quarter.
Capital and Credit Quality
The Common Equity Tier 1 (CET1) risk-based capital ratio increased 28 basis points to 10.10%, continuing the trend of capital expansion. The tangible common equity (TCE) ratio decreased 10 basis points from the prior quarter to 5.70%, and increased 38 basis points from a year ago. The company reported net charge-offs of 0.24% of average total loans and leases for the quarter, below the through the cycle target range. The nonperforming asset ratio stood at 0.52%.
CEO Commentary
We are pleased to deliver third quarter results highlighted by our top tier return profile and continued expansion of common equity tier 1 capital, which we drove to above 10%, said Steve Steinour, chairman, president, and CEO. We remain focused on executing our growth strategy, and leveraging the strength of our balance sheet to continue serving customers across the company. In the third quarter, we delivered another sequential increase in core deposits, further bolstered our leading liquidity position, added to our top tier credit reserves, and continued our disciplined management of credit quality consistent with our aggregate moderate-to-low risk appetite."
Looking Ahead
HBAN remains focused on executing its growth strategy and leveraging the strength of its balance sheet to continue serving customers across the company. The company is well-positioned to thrive as it manages through the dynamic environment and continues to deliver on its strategy while taking actions to position the company for sustained growth in the years ahead.
This article first appeared on GuruFocus.
