Huntington Bancshares 2Q loans $134.96B, est. $134.28B

Huntington Bancshares 2Q loans $134.96B, est. $134.28B

Huntington Bancshares Inc. (HBAN) has reported its preliminary second-quarter earnings per share (EPS) of $0.34, a 13% increase compared to the same period last year [1]. The company also announced its intention to acquire Veritex Holdings Inc. (VBTX) in a 100% stock transaction valued at $1.9 billion [1].

The preliminary EPS of 34 cents per share is expected to be unchanged from the prior quarter but represents a significant improvement over the year-ago quarter. This growth is attributed to robust performance in loans and deposits, sustained revenue and profit growth, and excellent credit performance [1].

Huntington Bancshares confirmed a definitive merger agreement with Veritex Holdings. The acquisition aims to strengthen Huntington's presence in Texas, one of the fastest-growing economies in the U.S. Upon completion, the deal will see Malcolm Holland, CEO of Veritex, join Huntington in a non-executive role as Chairman of Texas [2].

The transaction involves Huntington issuing 1.95 shares for each outstanding share of Veritex, amounting to a total consideration of $1.9 billion. The deal is expected to close early in the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions [2].

The acquisition is anticipated to be modestly accretive to Huntington's earnings per share and slightly dilutive to tangible book value per share, with payback expected within approximately one year inclusive of merger expenses and CECL double count [2].

The company's second-quarter results highlighted growth in key strategic fee revenues and net interest income, driven by strong loan growth and expanded net interest margin. Average total loans and leases increased $2.3 billion, or 2%, from the prior quarter to $133.2 billion, and increased $9.8 billion, or 8%, from the year-ago quarter [3].

Huntington Bancshares is a $210 billion asset regional bank holding company headquartered in Columbus, Ohio. It operates 968 branches in 13 states, offering a comprehensive suite of banking, payments, wealth management, and risk management products and services [3].

References:
[1] https://www.rttnews.com/3553086/huntington-bancshares-prelim-q2-eps-rises-to-acquire-veritex-holdings-for-1-9-bln.aspx
[2] https://www.marketscreener.com/quote/stock/HUNTINGTON-BANCSHARES-INC-40328830/news/Huntington-Bancshares-Expects-Q2-Earnings-Net-Interest-Income-to-Rise-50501941/
[3] https://finance.yahoo.com/news/huntington-bancshares-incorporated-announces-acquisition-120100970.html