Huntington Bancshares Raises 2025 Guidance to 11% NII Growth with Veritex Acquisition Accelerating Texas Expansion

Huntington Bancshares raised its 2025 guidance to 11% NII growth, driven by the acquisition of Veritex which is accelerating its expansion in Texas. The company reported another outstanding quarter with top-tier profitability and outperformance in loan growth. Management expects to continue accelerating its momentum in the future.

Huntington Bancshares Incorporated (HBAN) has raised its 2025 net interest income (NII) growth guidance to 11%, driven by the acquisition of Veritex, which is accelerating its expansion in Texas. The company reported another outstanding quarter with top-tier profitability and outperformance in loan growth. Management expects to continue accelerating its momentum in the future.

Stephen Steinour, Chairman, President & CEO, highlighted the company's exceptional performance during the earnings call, stating, "We delivered another outstanding quarter. The business is performing exceptionally well across all fronts. We have tremendous momentum, and we are poised to accelerate from here." He noted top-tier profitability, outperformance in loan and deposit growth compared to peers, and strong positive operating leverage, according to a Seeking Alpha report a Seeking Alpha report.

The acquisition of Veritex, which is set to close next week, is expected to provide immediate scale in Texas. Steinour announced, "We are poised to further accelerate our growth in Texas. We look forward to welcoming our Veritex colleagues and customers to Huntington next Monday...we will achieve immediate scale in Texas...the 14th largest depository in the state and the fifth largest in Dallas." The company projects a 1 percentage point improvement in efficiency ratio and approximately a 30 basis points lift to ROTCE from the Veritex acquisition, with greater opportunity anticipated from revenue growth synergies, as noted by Seeking Alpha.

Zachary Wasserman, CFO & Senior EVP, reported that Huntington delivered another outstanding quarter with earnings per common share of $0.41. Adjusted EPS was $0.40, up 18% year-over-year. Average loan balances grew by $2.8 billion or 2% from the prior quarter, while average deposits increased by $1.4 billion or 1%. Reported CET1 ended the quarter at 10.6% with adjusted CET1 at 9.2%, according to Seeking Alpha.

Wasserman also raised the company's full-year NII guidance by 2 percentage points to 10% to 11% from the prior range of 8% to 9%. Inclusive of Veritex, full-year average deposit balance (ADB) growth is projected at approximately 6.5% to 7%. Stand-alone loan growth is expected at the high end of the guidance range at approximately 8%, with a combined guidance of 9% to 9.5% including Veritex. Full year fee income guidance increased to approximately 7% from the prior 4% to 6%, per Seeking Alpha.

The acquisition of Veritex is expected to be a major catalyst for HBAN's expansion into the Texas market. The average price target for HBAN has increased from $18.8 to $23 over the past year, indicating a positive shift in analyst sentiment, according to a FinancialModelingPrep report a FinancialModelingPrep report. Analysts from Raymond James have set a price target of $18, indicating a positive outlook for the stock.

Management's tone was more assertive this quarter, highlighting integration certainty and expanded market share in Texas, compared to a more measured optimism last quarter. Analysts maintained focus on core operational drivers and integration risk, with slightly more emphasis on sustainable profitability and credit controls, as reported by Seeking Alpha.

Huntington Bancshares emphasized a period of exceptional operational performance, raising its 2025 guidance on both net interest income and fee growth while delivering peer-leading loan and deposit expansion. The Veritex acquisition is positioned as a springboard for accelerated Texas growth, with management expressing confidence in seamless integration and realization of both cost and revenue synergies. Credit quality remains strong, underpinned by disciplined risk management, and the balance sheet is described as well-capitalized. With tangible book value and ROTCE both advancing, management maintains high confidence in delivering continued strong results and long-term shareholder value creation.