Huntington Bancshares (HBAN 0.60%) reported second quarter 2025 results on July 18, 2025, featuring earnings per share (EPS) of $0.34 and sequential growth in average loans and deposits of $2.3 billion (1.8%) and $1.8 billion (1.1%), respectively. Loan growth exceeded internal forecasts, prompting increases in full-year loan growth guidance (now 6% to 8%), while the upcoming Veritex acquisition was described as a significant catalyst for Texas market expansion.
Material Operating Leverage Enhances Long-Term Profitability
On an adjusted basis, pre-provision net revenue (PPNR) expanded 15% year over year, while expense growth for 2025 is now forecast at 5% to 6%, largely driven by higher incentive compensation reflecting performance outperformance, reinforcing capital growth.
"We have more positive operating leverage now than we had in the original budget, something like half a point to maybe even a point more operating leverage, so it's really good."
— Zach Wasserman, Chief Financial Officer
Operating leverage is now more positive than in the original budget, directly supporting tangible book value and return on equity.
Strategic Veritex Acquisition Fast-Tracks Texas Franchise Buildout
The announced Veritex acquisition adds over 30 branches to Huntington’s Texas footprint, creating immediate scale in Dallas-Fort Worth and Houston and transforming Texas into the company’s third-largest deposit market post-close. Leadership continuity with Malcolm Holland as chairman of Texas and local customer relationship strengths are central integration themes.
"Texas alone, as I think I shared Monday, is a huge economic and demographic opportunity, and Texas will become our third-largest state in terms of deposits when we close this."
— Stephen Steinour, Chairman, President, and CEO
This acquisition accelerates the bank's access to high-growth South-central U.S. markets.
Robust Credit and Funding Profile Underpins Resilient Balance Sheet
Net charge-offs declined to 20 basis points, and the allowance for credit losses increased to 1.86%, maintaining a cautious risk posture despite credit outperformance. Adjusted CET1 capital progressed to the lower end (9%) of the bank's targeted operating range, and liquidity remains strong with 2 times coverage of uninsured deposits.
"Our liquidity remains strong with 2 times coverage of uninsured deposits. Notably, our tangible book value increased 16% year over year."
— Stephen Steinour, Chairman, President, and CEO
These factors support future growth, regulatory compliance, and strategic flexibility.
Looking Ahead
Management raised the full-year outlook for loan growth to 6% to 8%, with net charge-off guidance for 2025 lowered to 20 to 30 basis points. Adjusted CET1 was 9%, at the lower bound of the targeted operating range of 9% to 10%. Expectations for the third quarter of 2025 include approximately 1% sequential loan growth, stable net interest income, and expenses (GAAP) of about $1.2 billion, reflecting seasonal marketing investments. No quantified forward guidance relating to the Veritex acquisition will be issued until closer to the deal's closing in the fourth quarter.