Huntington Bancshares Q1 Earnings Beat Expectations with 19% NII Growth
Huntington Bancshares reported first-quarter net income of $523 million and adjusted EPS of $0.37, surpassing analysts’ $0.36 forecast. Net interest income rose $299 million (19%) and average loans grew 19% to $174.2 billion after Cadence and Veritex acquisitions.
1. First-Quarter Income and EPS
Huntington Bancshares posted net income of $523 million for Q1, with GAAP EPS of $0.25 and adjusted EPS of $0.37 per share versus an analyst consensus of $0.36. Total revenue was $3.77 billion, with net revenue after interest expense of $2.59 billion, matching Street forecasts.
2. Net Interest Income and Loan Growth
Net interest income increased by $299 million, or 19%, from the prior quarter. Average total loans and leases rose $27.6 billion, or 19%, to $174.2 billion, reflecting strong commercial and consumer loan growth and the impact of Cadence and Veritex acquisitions.
3. M&A Integration and Deposit Expansion
The systems conversion of Veritex was completed in mid-January, and the Cadence partnership closed February 1, with integration expected in Q2. Average deposits climbed $31.5 billion, or 18%, to support the enlarged balance sheet and funding needs.
4. Capital Ratios and Share Repurchase
Common Equity Tier 1 ratio was 10.2% at quarter end, while tangible book value per share stood at $9.55. The company repurchased $150 million of common shares in Q1 and secured board approval for a new $3 billion share repurchase authorization.