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Huntington Bancshares (HBAN)
NASDAQ:HBAN
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Huntington Bancshares (HBAN) AI Stock Analysis

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HBAN

Huntington Bancshares

(NASDAQ:HBAN)

Rating:77Outperform
Price Target:
$19.00
â–²(14.18%Upside)
Huntington Bancshares demonstrates strong financial performance with robust revenue growth and profitability. The positive sentiment from the earnings call and strategic acquisition further boost its outlook. While technical indicators show some positive momentum, the valuation remains attractive, supported by a solid dividend yield.
Positive Factors
Acquisition
The acquisition of Veritex is seen positively as it gets Huntington Bancshares into the growth Texas market at a fair price.
Capital Markets
Management expects to reach the high end of their guidance range based on strong performance in capital markets.
Earnings
Huntington Bancshares reported higher net interest income and fees than expected.
Negative Factors
Expenses
Higher revenues are accompanied by increased expenses, which could impact overall profitability.
Mergers and Acquisitions
The only negative noted is that this could create an overhang as Huntington Bancshares could seek out further mergers and acquisitions in Texas.
Valuation
Maintain BUY rating, but lowering PT to $18 (was $19).

Huntington Bancshares (HBAN) vs. SPDR S&P 500 ETF (SPY)

Huntington Bancshares Business Overview & Revenue Model

Company DescriptionHuntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio. It operates through its subsidiary, The Huntington National Bank, providing a comprehensive range of banking services. The company offers retail banking, commercial banking, and wealth management services across its network of branches primarily located in the Midwest region of the United States. Its core products and services include checking and savings accounts, mortgage and consumer loans, credit cards, and various investment and insurance solutions.
How the Company Makes MoneyHuntington Bancshares generates revenue primarily through interest income and non-interest income. Interest income is derived from loans and lease financing, where the company earns money from the interest charged on consumer and commercial loans, including mortgages, personal loans, and business loans. Non-interest income comes from fees and service charges related to banking services, such as account maintenance fees, transaction fees, and overdraft charges. Additionally, Huntington earns income from investment management services, trust services, and insurance product sales. The bank also benefits from strategic partnerships and acquisitions that enhance its product offerings and expand its market reach, contributing to its financial performance.

Huntington Bancshares Earnings Call Summary

Earnings Call Date:Jul 18, 2025
(Q2-2025)
|
% Change Since: -2.00%|
Next Earnings Date:Oct 17, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong quarter for Huntington Bancshares with significant growth in loans, deposits, and profitability. The acquisition of Veritex is seen as a strategic move to enhance growth in Texas. Despite some increases in nonperforming assets, the overall credit quality remains strong. The sentiment is positive with more highlights than lowlights.
Q2-2025 Updates
Positive Updates
Strong Operating Performance and Organic Growth
The company reported robust organic growth in loans, deposits, and fees, surpassing their plans for the year. Average loans and deposits both grew by almost $10 billion year-over-year.
Acquisition of Veritex
Huntington Bancshares announced the acquisition of Veritex, which will accelerate growth in Texas with a strong presence in Dallas-Fort Worth and Houston.
Revenue and Profit Growth
Year-over-year revenue and profit grew strongly, supported by expanded net interest margin, value-added fee services, and positive operating leverage.
Improved Credit Performance
Net charge-offs improved by 6 basis points from the prior quarter to 20 basis points, with stable credit performance at a low level of losses.
Increased Tangible Book Value
Tangible book value increased by 16% year-over-year, indicating strong capital growth and value creation for shareholders.
Negative Updates
Higher Nonperforming Assets in C&I
There was a $76 million increase in nonperforming assets on the C&I side, although credit quality remains strong overall.
Challenges in Noninterest-Bearing Deposits
Noninterest-bearing deposits saw a decline, although overall deposit trends were stable.
Company Guidance
During the Huntington Bancshares Second Quarter 2025 Earnings Call, management provided guidance highlighting a robust financial performance and optimistic outlook. The company reported a 27% year-over-year growth in earnings per share, excluding certain items, and an adjusted return on tangible common equity (ROTCE) of 17.6%. They noted a significant increase in average loans and deposits, each growing by nearly $10 billion year-over-year. The net interest margin expanded to 3.11%, contributing to an 8% to 9% expected full-year net interest income growth. Huntington also achieved 11% growth in strategic fee income areas, such as payments, wealth, and capital markets. Credit performance remained strong, with net charge-offs improving to 20 basis points, and liquidity coverage was robust at 2x uninsured deposits. The tangible book value per share increased by 16% year-over-year. For the rest of 2025, Huntington raised its guidance for loan and deposit growth to 6% to 8% and 4% to 6%, respectively, and projected full-year expense growth of 5% to 6% while maintaining positive operating leverage. The company also highlighted the strategic acquisition of Veritex, expected to close in the fourth quarter, as a significant growth opportunity, particularly in the Texas market.

Huntington Bancshares Financial Statement Overview

Summary
Huntington Bancshares displays solid revenue growth and strong profitability. The balance sheet is robust, with prudent leverage and strong cash flow generation. However, there is room for improvement in operational efficiencies.
Income Statement
75
Positive
Huntington Bancshares shows solid revenue growth with a notable increase in total revenue from prior periods. The company exhibits healthy gross and net profit margins, indicating efficient operations. However, EBIT and EBITDA margins have faced some compression, suggesting potential cost management issues or increased competition.
Balance Sheet
70
Positive
The balance sheet is robust with a strong equity base. The Debt-to-Equity ratio is low, reflecting conservative leverage practices. However, the Equity Ratio shows a lower proportion of equity financing, suggesting potential reliance on liabilities for asset funding.
Cash Flow
80
Positive
Cash flow statements are strong, with consistent free cash flow generation. The growth in free cash flow is commendable, and the operating cash flow to net income ratio is stable, highlighting efficient cash conversion from earnings. This suggests a well-managed cash flow position despite fluctuations in investing and financing activities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.96B10.78B7.95B6.08B5.24B
Gross Profit6.96B6.90B6.96B5.97B3.77B
EBITDA3.02B3.18B3.25B1.98B1.34B
Net Income1.94B1.95B2.24B1.29B817.00M
Balance Sheet
Total Assets204.23B189.37B182.91B174.06B123.04B
Cash, Cash Equivalents and Short-Term Investments17.21B13.70B7.43B6.29B7.02B
Total Debt16.57B13.01B11.71B7.44B8.54B
Total Liabilities184.45B169.97B165.14B154.75B110.05B
Stockholders Equity19.74B19.35B17.73B19.30B12.99B
Cash Flow
Free Cash Flow1.67B2.52B3.81B1.81B1.20B
Operating Cash Flow1.81B2.66B4.03B2.06B1.32B
Investing Cash Flow-12.12B-3.00B-11.61B-3.96B-8.64B
Financing Cash Flow13.02B3.77B8.76B827.00M12.74B

Huntington Bancshares Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price16.64
Price Trends
50DMA
16.25
Positive
100DMA
15.29
Positive
200DMA
15.74
Positive
Market Momentum
MACD
0.15
Positive
RSI
49.55
Neutral
STOCH
30.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBAN, the sentiment is Neutral. The current price of 16.64 is below the 20-day moving average (MA) of 17.02, above the 50-day MA of 16.25, and above the 200-day MA of 15.74, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 30.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HBAN.

Huntington Bancshares Risk Analysis

Huntington Bancshares disclosed 32 risk factors in its most recent earnings report. Huntington Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Huntington Bancshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$28.53B13.2911.58%3.47%2.08%2.87%
77
Outperform
$23.70B12.3111.59%3.80%2.83%20.85%
77
Outperform
$21.63B15.216.48%3.41%-4.07%25.31%
77
Outperform
$24.66B12.5610.43%3.73%5.82%28.04%
76
Outperform
$31.09B12.699.48%2.79%0.62%14.75%
70
Outperform
$20.60B1,663.641.02%4.43%-12.21%-108.48%
64
Neutral
$6.69B10.237.22%190.13%24.15%5.15%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HBAN
Huntington Bancshares
16.64
2.11
14.52%
FITB
Fifth Third Bancorp
42.69
1.91
4.68%
KEY
KeyCorp
18.50
2.82
17.98%
MTB
M&T Bank
193.67
23.69
13.94%
RF
Regions Financial
26.30
4.48
20.53%
CFG
Citizens Financial
49.28
7.74
18.63%

Huntington Bancshares Corporate Events

DividendsBusiness Operations and Strategy
Huntington Bancshares Declares Quarterly Dividends Announcement
Positive
Jul 18, 2025

On July 18, 2025, Huntington Bancshares announced that its Board of Directors declared a quarterly cash dividend of $0.155 per common share, maintaining the same rate as the previous quarter. Additionally, the Board declared quarterly cash dividends on five series of its preferred stock, with all dividends payable in October 2025. This announcement reflects Huntington’s stable financial strategy and commitment to returning value to its shareholders, reinforcing its position in the banking industry.

The most recent analyst rating on (HBAN) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Huntington Bancshares stock, see the HBAN Stock Forecast page.

M&A Transactions
Huntington Bancshares Announces Merger with Veritex Holdings
Neutral
Jul 17, 2025

On July 13, 2025, Huntington Bancshares entered into a merger agreement with Veritex Holdings, where Veritex will merge into Huntington, with Huntington as the surviving corporation. The merger, unanimously approved by both companies’ boards, involves a stock exchange and cash considerations for Veritex shareholders, and includes a $10 million contribution to the Huntington Foundation for Veritex’s markets. The completion of the merger is subject to customary conditions such as shareholder approval, regulatory clearances, and the absence of legal restraints.

The most recent analyst rating on (HBAN) stock is a Buy with a $19.50 price target. To see the full list of analyst forecasts on Huntington Bancshares stock, see the HBAN Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Huntington Bancshares Acquires Veritex Holdings for $1.9 Billion
Positive
Jul 14, 2025

On July 14, 2025, Huntington Bancshares announced its acquisition of Veritex Holdings, Inc., a move that will enhance its growth in the high-growth Texas markets, particularly in Dallas/Fort Worth and Houston. The merger, valued at $1.9 billion, is expected to close in the fourth quarter of 2025 and will see Veritex merge into Huntington, with Huntington continuing as the surviving entity. This strategic acquisition is anticipated to accelerate Huntington’s organic growth initiatives and strengthen its market position in Texas, one of the fastest-growing economies in the U.S. Additionally, Huntington reported strong preliminary second-quarter results for 2025, with significant growth in loans, deposits, and net interest income, reflecting its robust financial performance.

The most recent analyst rating on (HBAN) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Huntington Bancshares stock, see the HBAN Stock Forecast page.

Dividends
Huntington Bancshares Declares Quarterly Preferred Stock Dividend
Positive
Jun 27, 2025

On June 27, 2025, Huntington Bancshares announced that its Board of Directors declared a quarterly cash dividend for its 5.70% Series I Non-Cumulative Perpetual Preferred Stock, amounting to $356.25 per share, payable on September 2, 2025, to shareholders recorded by August 15, 2025. This move reflects Huntington’s ongoing commitment to providing returns to its shareholders and may enhance its attractiveness to investors seeking stable income through dividends.

The most recent analyst rating on (HBAN) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Huntington Bancshares stock, see the HBAN Stock Forecast page.

Business Operations and Strategy
Huntington Bancshares to Present at Financials Conference
Positive
Jun 11, 2025

Huntington Bancshares announced its participation in the 2025 Morgan Stanley US Financials Conference on June 11, 2025, where CFO Zach Wasserman will present. The company highlights its strategic focus on organic growth, robust profit growth, and strong credit performance, positioning itself to outperform in various economic scenarios.

The most recent analyst rating on (HBAN) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Huntington Bancshares stock, see the HBAN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025