Huntington Bancshares boosted its full-year 2025 outlook for a number of key financial metrics Friday, forecasting higher loan and deposit growth along with an uptick in noninterest income. The Columbus Ohio-based company also joined a growing list of superregional and money center banks that have reported strengthening credit quality.
“Our second-quarter results reflect the ongoing successful execution of our organic growth strategy,” Chairman and CEO Steve Steinour said in a press release. “We have seen both loan and deposit growth of approximately $10 billion over the past year. Our commercial specialty banking teams are delivering solid results as we broaden capabilities and extend our national reach.”
The $207.7 billion-asset Huntington released its second-quarter earnings report Friday, four days after announcing a
On the credit quality front, Huntington reported net charge-offs of $66 million or 0.20% of average loans and leases, down nine basis points from the second quarter of 2024. Criticized assets also showed a significant year-over-year decline, while the nonperforming asset ratio held steady at 0.63% of average loans.
“The portfolio has performed exceptionally well,” Steinour told American Banker in a follow-up interview. He added that he expected the trend to continue through the remainder of 2025. “I’m fairly confident in our second-half credit outlook as we sit here today,” Steinour said.
Despite concerns over tariffs, inflation and interest rates, a number of banks have delivered upbeat credit quality news. U.S. Bancorp
Chief Financial Officer John Stern told American Banker that loss rates in the bank’s credit card portfolio would end 2025 lower than the 2024 level, while the company-wide charge-off ratio was expected to be stable to down. “You’re seeing a resilient client, and that’s really good,” Stern said.
“We’re encouraged by the strong trends year-to-date and a solid second-quarter delinquency exit, which together give us incremental confidence in near-term portfolio behavior,” Hutchinson said Friday on a conference call with analysts.
Webster Financial in Stamford, Connecticut,
A better-than-expected performance by the U.S. economy “has benefited the industry,” Steinour said Friday. “The consumer has held up and businesses have figured out how to navigate through uncertainty and different tariff levels.”
For its part, Huntington reported deposits of $163.4 and loans totaling $133.2 on June 30, up 6.4% and 7.9% respectively from last year. Net interest income grew 12% year over year to $1.5 billion. Fees jumped 7% over the same period to $534 million.
“Overall, a better quarter than we and the consensus had forecast thanks to better-than-expected net interest income, expenses, and credit costs,” Scott Siefers, who covers Huntington for Piper Sandler, wrote in a research note.
The company’s ongoing expansion in Texas and the Carolinas, as well as its entry into several new lending verticals contributed to those gains, but several legacy businesses, including auto, mortgages and Small Business Administration lending posted strong performances, too. Huntington’s auto loan portfolio grew 16% annually to $15.1 billion. The mortgage portfolio grew 2% in the same period to $24.4 billion while the volume of home loans originated for sale increased 25% to $1.5 billion.
With roughly two-and-one-half months remaining in the agency’s 2025 fiscal year, the dollar-volume of Huntington’s SBA lending, which totaled $1.53 billion through Thursday, has already surpassed the result for all of fiscal 2025.
“We try to bring [the legacy businesses] into the commentary, but because there’s so much interest in the Carolinas and Texas, that tends to swamp it a bit,” Steinour said. “These legacy businesses … they’re all doing reasonably well.”