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Huntington Bancshares Stock: 9 Critical Numbers

Given that you clicked on this article, it seems safe to assume you either own stock in Huntington Bancshares (NASDAQ: HBAN  ) or are considering buying shares in the near future. If so, then you've come to the right place. The table below reveals the nine most critical numbers that investors need to know about Huntington stock before deciding whether to buy, sell, or hold it.

But before getting to that, a brief introduction is in order. Huntington traces its roots back to 1866. Headquartered in Columbus, Ohio, it has a network of more than 690 traditional bank branches and "convenience branches" located in grocery stores throughout six Midwestern states: Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky. And while it offers an array of services, from commercial to mortgage lending, a particular specialty of Huntington's is automobile financing. As its website boasts, "Through automotive dealership relationships within its six-state banking franchise area and selected other Midwest and New England states, Huntington also provides commercial banking services to the automotive dealers and retail automobile financing for dealer customers."

As you can see in the table above, Huntington's biggest strength is its management of credit risk. With a non-performing loans ratio of 1%, the bank beat the industry average by an impressive 84 basis points. This wasn't always the case. In 2008 and 2009, for example, its NPL ratio shot up to 3.7% and 5.2%, respectively, thanks to Huntington's ill-timed acquisition of Sky Financial in 2007 -- the latter made loans to, among others, a consumer finance company with a large portfolio of subprime mortgages. Huntington was able to put this decision behind it with a $2.6 billion charge-off in 2009 and the contemporaneous hiring of a new CEO.

On the other hand, Huntington's biggest weakness is its net interest margin, which comes in almost 30 basis points below average thanks to the bank's notoriously low-yielding securities portfolio. There is, however, an upside here. As Huntington's chief financial officer explained on the last conference call, "we try to keep the duration fairly short there. And so we think we will have less falloff from our current yield there than many of our peers as well, which will be a relative benefit for us compared to our peers."

With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal, or whether finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether Huntington Bancshares is a buy today, I invite you to read our premium research report on the company today. Click here now for instant access!

Read/Post Comments (1) | Recommend This Article (2)

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  • Report this Comment On April 08, 2013, at 9:39 PM, Teacherman1 wrote:

    A first class operation which I have owned and will continue to own for a long time to come.

    In time, they should get back to the "old school model" of what bank stocks used to be.

    Rather than being "growth stocks", they were solid, stable, reliable, dividend payers.

    In the case of HBAN, you have for the intermediate term both "growth", through price appreciation, with a reasonable current dividend, and the likelyhood that the dividend will increase significantly.

    JMO and worth exactly what I am charging for it.

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9/28/2016 4:00 PM
HBAN $9.92 Up +0.18 +1.85%
Huntington Bancsha… CAPS Rating: *****