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Huntington Bancshares Incorporated (HBAN)

- NASDAQ
  • Apr. 15, 2014, 5:30 PM
  • Apr. 9, 2014, 9:03 AM
    • Huntington Bancshares (HBAN) agrees to buy 11 branches in central and eastern Michigan, increasing its branch total in the state to 173, including 80 in the eastern region.
    • Total deposits purchased is about $450M for a deposit premium of 3.5%. The deal is expected to close in H2, subject to the usual conditions and regulatory approvals.
    • Press release
    | Comment!
  • Mar. 28, 2014, 11:41 AM
    • Count Credit Suisse's Moshe Orenbuch as surprised about the Fed's denial of Citigroup's (C -0.5%) capital return plan. Maybe Citi is just too tough for regulators to get their arms around as it is the most complicated of all the bank holding companies.
    • Included in the Credit Suisse report is this handy chart of dividends, buybacks, and payout ratios for all of the CCAR banks for 2013 and 2014. Things are loosening up - the median payout ratio (includes dividends and buybacks) this year of 71% compares to 59% in 2013. The dividend payout ratio rises to 26% from 23%.
    • It helps to be smaller - among the TBTFs, Citi's payout ratio is just 8%, BofA (BAC) 37%, JPMorgan (JPM) 56%, Morgan Stanley (MS) 41%. Wells Fargo is above the median though, being allowed a payout of 79%.
    • The regionals (KRE), trust banks, and credit card companies - for the most part - were all allowed payout ratios above the median.
    • The strongest capital returns vs. CS's expectations are those for BNY Mellon (BK), Capital One (COF), KeyCorp (KEY), Huntington Bancshares (HBAN), PNC Financial, and Wells Fargo.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, PFI, KBWB, FNCL, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, PSCF, KRS, FINZ, AIRR
    | 4 Comments
  • Mar. 27, 2014, 8:36 AM
    • It's a slow grind for bank capital returns (at least those subject to the CCAR), notes Goldman' Richard Ramsden, with payout ratios boosted just four percentage points to 62% this year. There are clear winners, he says: The credit card companies led by AXP and COF and the trust banks led by BK. Regional banks (KRE) boosted returns but generally fell short of expectations (with HBAN and PNC being the exceptions). Worst-performing were the TBTFs, though JPM and WFC were positives.
    • "CCAR highlighted the challenges large-caps have in returning excess capital," he says, with Citigroup's (C) failure a reminder the process is unpredictable. With all that excess capital remaining on the balance sheet, Ciit's 2015 goal of a 10% ROTCE appears unlikely to be met.
    • For Bank of America (BAC), it's resubmission - a better outcome than outright failure - reminds that even well-capitalized banks are "bound by stressed capital and could have trouble returning outsized capital."
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, PFI, KBWB, FNCL, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, PSCF, KRS, FINZ, AIRR
    | 6 Comments
  • Mar. 27, 2014, 7:25 AM
    • Both Bernstein and KBW remove Outperform ratings on Citigroup (C) the morning after its capital return plan was rejected by the Fed for "qualitative" reasons. One wonders whether this disappointment wasn't already priced in as Citi has underperformed this year, and for some time been the only one of the major banks trading below book value. Shares are off 5% in premarket action.
    • Overall, the bank capital returns announced yesterday are below expectations, says Compass Point's Kevin Barker, but Huntington Bancshares (HBAN) - which boosted the dividend 20% and announced a buyback for about 3% of the float - was better than hoped.
    • XLF -0.1% premarket
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAI, IAT, SEF, IYG, FXO, PFI, KBWB, FNCL, RKH, QABA, FINU, KRU, RWW, KCE, KBWR, RYF, PSCF, KRS, FINZ, KBWC, AIRR
    | 2 Comments
  • Mar. 26, 2014, 4:25 PM
    • Following Fed approval of its capital return plan, Huntington Bancshares (HBAN) announces a 20% increase in the dividend to $0.06 per share beginning in Q4 of this year, and a repurchase plan for up to $250M of stock. At today's price, that's about 25M shares or 3% of the float.
    • Press release
    • Shares flat AH
    • Earlier coverage of CCAR results
    | 1 Comment
  • Mar. 20, 2014, 5:07 PM
    • Again, all 30 lenders subject to the Fed stress test passed with the exception of Zions Bancorp. Checking the individual results:
    • Regional banks passing: BB&T Corp. (BBT), Comerica (CMA), Fifth Third (FITB), Huntington (HBAN), KeyCorp (KEY), M&T (MTB), PNC, Regions (RF), SunTrust (STI), U.S. Bancorp (USB).
    • Credit card lenders: American Express (AXP), Discover (see here), Capital One (COF).
    • Those controlled by overseas holding companies: BBVA Compass, BMO FInancial, HSBC North America, RBS Citizens Financial, Santander Holdings USA (SAN), UnionBanCal (MTU).
    • Trust banks: Bank of New York (BK), State Street (STT), Northern Trust (NTRS).
    • TBTFs: See here.
    • More on Zions (ZION): The failure likely has something to do with CDOs on its books backed by trust-preferred securities. The bank signaled earlier this year it would likely resubmit its capital plan to the Fed as the test's calculation of its capital ratio wouldn't reflect Zion's planned sale of these.
    | 2 Comments
  • Mar. 20, 2014, 10:54 AM
    • Much of the financial sector is lit up bright green, continuing to outperform following yesterday's suggestion by the FOMC and Janet Yellen that rate hikes could come sooner than expected. XLF +1.1%, KBE +1.6%, KRE +1.6%.
    • At new 52-week or even multi-year highs are JPMorgan (JPM +2.3%), Wells Fargo (WFC +1.7%), Morgan Stanley (MS +1.4%), and Bank of America (BAC +1.6%).
    • Regional lenders: U.S. Bancorp (USB +1%), Huntington (HBAN +1.5%), PNC (PNC +1.3%), BB&T (BBT +1.5%), Fifth Third (FITB +1.8%), First Niagara (FNFG +2.1%).
    • Leading among the life insurers are Lincoln National (LNC +1.9%), Protective Life (PL +1.6%), Manulife (MFC +1.2%), and Sun Life (SLF +1.1%).
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, PFI, KBWB, RKH, QABA, FNCL, FINU, KRU, RWW, KBWR, RYF, PSCF, KBWI, KBWP, KRS, FINZ
    | 5 Comments
  • Mar. 20, 2014, 10:35 AM
    • The results of the Fed stress tests on the usual banking industry suspects are expected today, but this year's version includes 12 new companies added to last year's list of 18. Newly subjected U.S.-based lenders: DFS, NTRS, HBAN, MTB, ZION. Foreign-owned U.S. bank holding companies: BBVA Compass Bancshares, BMO Financial, HSBC N.A. Holdings, RBS Citizens Financial Group, Santander Holdings USA (SAN), UnionBanCal (MTU).
    • The CCAR results - at which the Fed will give a thumbs up/thumbs down on banks' capital return plans - are due on March 26.
    | Comment!
  • Mar. 17, 2014, 10:57 AM
    • "We maintain our contention that as the tailwind of credit improvement subsides, banks must renew their focus on core profitability to compensate for the persistent low interest rate environment, increased regulations and modest loan growth," writes RBC Capital, trying to say the easy money's been made for banks and now those with the strongest managements will be the ones to prosper going forward.
    • No surprise, an RBC survey finds Wells Fargo (WFC +1%) and U.S. Bancorp (USB +0.8%) as the best-managed banks (defining this by ROA and ROTCE), with Capital One (COF +1.4%) ranking high as well. The team comes up with a list of seven "up and comers" perhaps poised to join the ranks of "best managed":
    • BB&T (BBT +0.5%), Huntington Bancshares (HBAN +0.9%), Fifth Third (FITB +0.7%), JPMorgan (JPM +0.9%), M&T Bank (MTB), PNC Financial (PNC +1%), and SunTrust (STI +0.7%).
    | 2 Comments
  • Mar. 17, 2014, 6:42 AM
    • Howell "Mac" McCullough comes over from U.S. Bank where he's been chief strategy officer for the last seven years. At Huntington (HBAN), he replaces David Anderson who has held the position on an interim basis since last May when previous CFO Don Kimble exited to take the same role at KeyCorp.
    • Press release
    | Comment!
  • Feb. 20, 2014, 3:29 PM
    • Expecting dividends to grow 49% on average for the banks subject to the Fed's stress tests (about the same as last year), Markit, says Citigroup (C) and Bank of America (BAC) will lead the way with 400% boosts. "They are the last of the major banks paying minimal dividends ... change is overdue."
    • While 400% is a big number, Citi and BofA will continue to lag their peers in terms of yield (400% growth on a penny just leads to a nickel).
    • Also expected to have a significant pop is Morgan Stanley (MS) - a doubling of the payout to $0.10 per share and a 1.4% yield. Others in the top 5 in increases are Zions Bancorp (ZION) with a 75% boost to $0.07 and Regions Financial (RF) up 67% to $0.05.
    • The others: KEY +27%, HBAN +20%, BK +20%, STI +20%, COF +17%, DFS +15%, AXP +13%, STT +12%, JPM +11%, CMA +11%, PNC +9%, USB +9%, GS +9%, FITB +8%, WFC +7%, NTRS +6%, and no soup for BBT and MTB where the dividends are expected to be flat at $0.23 and $0.70 per share, respectively.
    • As for ETFs, the dividend jumps are expected to have the biggest impact on the XLF which would see a 25% increase in payout: The ETF has 81 companies, but the top 5 holdings - BofA, Wells, JPM, Citi, USB - make up 41% of assets. In contrast, just two CCAR banks make up the top five holdings of the KBE and it should see a more muted increase of just 18%.
    • Related ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, PFI, KBWB, RKH, QABA, FNCL, FINU, KRU, RWW, KBWR, RYF, PSCF, KRS, FINZ
    | 13 Comments
  • Jan. 16, 2014, 9:45 AM
    • "First take: Slightly better than consensus, but outlook mixed," says Goldman, commenting on Huntington Bancshares (HBAN -4.1%) Q4 results.
    • Net income of $9M fell 6% from a year ago, with net interest income of $439M unchanged amid a drop in NIM of 17 bps to 3.28%.
    • Noninterest income of 246.6M is off 17% from a year ago.
    • The efficiency ratio rose (not an improvement) to 63.7% from 60.6% in Q3 and 62.3% a year ago.
    • 2014 outlook: "We again expect to face the headwinds of the yield curve, the regulatory environment, and the uncertainty of Washington, [but] we believe our business model will continue to overcome these challenges and deliver strong performance ... Noninterest income ... is expected to be slightly lower than recent levels, due to the anticipated decline in mortgage banking revenues."
    • CC at 10 ET
    • Press release, Q4 results
    | 1 Comment
  • Jan. 16, 2014, 6:00 AM
    • Huntington Bancshares Incorporated (HBAN): Q4 EPS of $0.18 beats by $0.01.
    • Revenue of $685.5M (-6.3% Y/Y) beats by $6.2M.
    • Press Release
    | Comment!
  • Jan. 16, 2014, 12:05 AM
  • Jan. 15, 2014, 5:30 PM
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Company Description
Huntington Bancshares Inc is a multi-state financial holding company. It provides full-service commercial, small business, consumer, and mortgage banking services, as well as automobile financing, investment management services, & among others..