Huntington Bancshares Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 20 October 2025: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net income rose 17% from prior quarter: Net income was $629 million, or $0.41 per common share, up $93 million or 17% from the prior quarter and up 22% from the year-ago quarter.
• Commercial loans led average growth: Average commercial loans rose $2.0 billion sequentially and $8.5 billion, or 12%, year on year. Commercial and industrial loans drove the increase, while commercial real estate declined.
• Noninterest income up 20% year on year: Noninterest income was $628 million, up 33% from the prior quarter. Excluding the corporate trust gain, credit risk transfer effects and the prior-quarter securities repositioning, it rose 13% sequentially.
• Margin widened on lower funding costs: The year-on-year margin gain came from lower funding costs, partly offset by lower asset yields and net hedging activity.
• Loans and deposits grew over past year: Over the past year, loans grew by more than $11 billion and deposits by $8 billion. About 60% of loan growth came from core businesses and 40% from new initiatives.
• Tangible book value per share rose 10%: Tangible book value per share was $9.54, up $0.41 sequentially and $0.89 from a year ago.
• Veritex merger closed: Huntington closed its merger with Veritex, a Dallas-based bank holding company, on the date the prior release had scheduled. Source
• Combined company size after closing: On 30 September 2025 balances, the combined company had about $223 billion in assets, $176 billion in deposits and $148 billion in loans. Source

“This combination will serve as a springboard for substantial future growth in Texas.”

Steve Steinour, chairman, president and CEO

What changed from last quarter

• New: Veritex merger with Huntington closed; the prior release had scheduled it for 20 October 2025. The combined company is now about $223 billion in assets. Source
• New: C. Malcolm Holland III, Veritex president and CEO, moved to a non-executive role as Chairman of Texas at Huntington. Source
• New: Branch footprint: the prior release showed 972 branches in 13 states; the closing release states more than 1,000 branches in 14 states. Source

Results and growth drivers

• Net income rose 17% from prior quarter: Net income was $629 million, or $0.41 per common share, up $93 million or 17% from the prior quarter and up 22% from the year-ago quarter.
• Net interest income up 11% year on year: Net interest income rose $39 million sequentially and $155 million from the year-ago quarter.
• EPS rose $0.05 excluding notable items: Excluding the after-tax effect of Notable Items, EPS rose $0.05 from the prior quarter and $0.07 from the year-ago quarter.

Commercial and consumer loans

• Commercial loans led average growth: Average commercial loans rose $2.0 billion sequentially and $8.5 billion, or 12%, year on year. Commercial and industrial loans drove the increase, while commercial real estate declined.
• Auto loans drove consumer growth: Average consumer loans rose $794 million sequentially, mainly on higher automobile loans.
• Commercial and industrial balances up 18%: Average commercial and industrial loans were $61.4 billion in the third quarter, up 3% from the second quarter and 18% from the year-ago quarter.

“We continue to deliver balanced, above-peer growth by acquiring new customers, deepening relationships, and expanding both net interest income and diversified fee revenues.”

Steve Steinour, chairman, president, and CEO

Fee income and customers

• Noninterest income up 20% year on year: Noninterest income was $628 million, up 33% from the prior quarter. Excluding the corporate trust gain, credit risk transfer effects and the prior-quarter securities repositioning, it rose 13% sequentially.
• Payments and cash management fees rose: Payments and cash management revenue rose on higher merchant acquiring and cash management revenues.
• Capital markets fees rose on syndication: Capital markets and advisory fees rose $10 million sequentially, on higher underwriting income and syndication fees.
• Other fee income rose on tax credit syndications: Other noninterest income rose $18 million sequentially, largely from revenue from tax credit syndications.
• J.D. Power ranking for dealer financing: The company was ranked first among non-captive regional lenders in the 2025 J.D. Power dealer financing study.

Operating expenses

• Expenses up 10% year on year: Reported noninterest expense rose $116 million from the year-ago quarter and $49 million from the prior quarter.
• Personnel costs drove the increase: Personnel costs rose on higher incentive compensation and salary expense.
• Foundation donation added to expense: Noninterest expense in the quarter included a $10 million foundation donation, recorded alongside the corporate trust gain. An $11 million gain from debt extinguishment offset part of the expense.

“As we look ahead, we are unwavering in our commitment to deliver powerful, through-the-cycle growth.”

Steve Steinour, chairman, president, and CEO

Net interest margin and funding

• Margin widened on lower funding costs: The year-on-year margin gain came from lower funding costs, partly offset by lower asset yields and net hedging activity.
• Sequential margin gain of 2 basis points: The sequential margin rise reflected higher interest-earning assets and lower funding costs, partly offset by net hedging activity.
• Loan yields edged up: Total loan and lease yield was 5.96% in the third quarter, up from 5.91% in the second quarter.

Deposit and loan growth

• Average deposits up 5% year on year: Average total deposits rose $1.4 billion sequentially and $8.3 billion from the year-ago quarter.
• Loans and deposits grew over past year: Over the past year, loans grew by more than $11 billion and deposits by $8 billion. About 60% of loan growth came from core businesses and 40% from new initiatives.
• Noninterest-bearing deposits edged down: Average noninterest-bearing demand deposits were $29.0 billion, down 1% sequentially and up 1% year on year.

Credit quality and reserves

• Nonaccrual loans rose year on year: Nonaccrual loans were $808 million, or 0.59% of loans, against $738 million, or 0.58%, a year earlier. The rise was driven by commercial and industrial nonaccruals.
• Nonperforming assets fell sequentially: Nonperforming assets decreased $31 million and nonaccrual loans decreased $34 million from the prior quarter, led by commercial and industrial and commercial real estate.
• Allowance held at 1.86% of loans: The allowance for credit losses was $2.6 billion, up $126 million from a year earlier and unchanged from the prior quarter as a share of loans.
• Charge-offs by commercial and consumer: Commercial net charge-offs were 0.18% and consumer net charge-offs were 0.27% of average balances for the quarter.

Capital and tangible book value

• Tangible book value per share rose 10%: Tangible book value per share was $9.54, up $0.41 sequentially and $0.89 from a year ago.
• Adjusted CET1 rose to 9.2%: Adjusted CET1, including AOCI excluding cash flow hedges, rose to 9.2% from 9.0% in the prior quarter.
• Tangible equity ratio rose to 6.8%: The tangible common equity to tangible assets ratio was 6.8%, up from 6.6% in the prior quarter.

Veritex merger and Texas footprint

• Veritex merger closed: Huntington closed its merger with Veritex, a Dallas-based bank holding company, on the date the prior release had scheduled. Source
• Combined company size after closing: On 30 September 2025 balances, the combined company had about $223 billion in assets, $176 billion in deposits and $148 billion in loans. Source
• Veritex adds 31 Texas branches: Veritex's 31 Texas branches take Huntington past 1,000 branches in its network. Source
• Dallas-Fort Worth and Houston expansion: The deal extends Huntington's Texas presence into the Dallas-Fort Worth and Houston markets. Source
• Branch network to be maintained: Huntington plans to keep Veritex's branch network and invest to grow it over time. Source
• SBA lender leadership in Texas: Huntington was the number one SBA 7(a) lender in Texas in 2024 and already offers middle-market banking and automotive finance in Dallas and Houston. Source

Texas leadership and staffing

• Holland describes a new chapter: Holland, who joined Huntington as Chairman of Texas, said the combination begins a new chapter for both banks' customers and colleagues. Source
• Roughly 200 Texas colleagues: Huntington has about 200 employees in Texas, led by local leadership. Source
• Texas economy described as dynamic: Brant Standridge, president of Consumer & Regional Banking, described Texas as one of the most dynamic and fastest-growing economies in the country. Source
• Huntington customers unaffected by conversion: Huntington customers will not be affected by the Veritex account conversion. Source

Coming up, as management said on 20 October 2025

• Veritex accounts convert in Q1 2026: Veritex customer accounts will move to Huntington's systems in the first quarter of 2026. Source
• Veritex customers to receive conversion details: Veritex customers will receive detailed information about the pending account conversions in the coming weeks. Source

Figures management reported

Risks management discussed

• Regulatory: Updated FDIC special assessment estimates affect deposit insurance expense. The quarter included a $6 million benefit from ongoing adjustments.
• Regulatory: Changes in certain state tax laws raised the effective tax rate to 17.4% through deferred tax asset remeasurement.

Earlier plans management reported on

• Met: The prior release scheduled the Veritex combination for 20 October 2025; the closing release reports the merger closed.
• Not stated: Management said integration was well underway, guided by its playbook and the shared values of both organizations.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.