SA Transcripts • Thu, Jan. 22
Update: My Reaction To Huntington Bancshares' Earnings Report
- Huntington Bancshares Incorporated has just announced its fourth quarter results.
- When I recently highlighted Huntington Bancshares in depth, I had laid out a case for why I saw upside in the stock, notably from loan and deposit growth.
- The report had strengths and weaknesses, but I maintain my price target of $10.25.
- Increased brand recognition and customer satisfaction will aid Huntington Moving Forward.
- Huntington's management team is well positioned to execute on strategic growth.
- The continued investment in new branches will help to foster Huntington's overall expansion.
Update: Huntington Bancshares Offers Apple Pay - Why I Expect Revenue GrowthChristopher F. Davis • Dec. 22, 2014
- Huntington Bancshares has just made an announcement that it has agreed to become an Apple Pay partner.
- I predicted the company would continue to improve credit card and electronic banking revenue, but this announcement was a surprise.
- The bank should see revenue growth from this move, and I maintain a buy rating on shares.
- After unanswered reader inquiries and seeing the results of Huntington Bancshares recent quarter, I decided it was time to initiate coverage.
- Most key metrics of the bank improved.
- Rising expenses impacted earnings but was mostly due to the growth initiatives of the company and restructuring plans.
- The dividend, loans and deposit activity tell the story I need to hear.
Huntington Strengthens Midwest Ties With Acquisitions
- Huntington adds 24 Michigan branches in key markets of Saginaw, Flint, and Monroe.
- Second quarter earnings were impressive with strong growth of automotive and home loans.
- Huntington shares have low price to earnings and decent dividend yield.
ModernGraham Annual Valuation Of Huntington BancsharesBenjamin Clark • Mar. 17, 2014
3 Reasons To Buy The Pullback In This $6 Bank Stock
Huntington Bancshares: Lending Should Pick Up in 2011Cullen Roche • Dec. 22, 2010
Thu, Jan. 22, 12:35 PM
- Mercilessly sold since the year turned, banks are putting in a rare session of outperformance, helped along by some earnings beats from regional lenders and the return of animal spirits in M&A with RBC's purchase of City National (CYN +18.6%) for $5.4B.
- The XLF +1.4% vs. the S&P's 0.6% gain today, and the regional bank ETF (NYSEARCA:KRE) is higher by 3.1%.
- Among today's reporters putting in big gains are KeyCorp (KEY +5.5%), BB&T (BBT +2.4%), and Huntington Bancshares (HBAN +2.6%), though Flagstar Bancorp (FBC -4.8%) missed estimates.
- Others: Regions Financial (RF +3.9%), PNC Financial (PNC +1.6%), Synovus (SNV +3.2%), M&T Bank (MTB +3%), Hudson City (HCBK +3.1%), First Horizon (FHN +2.7%), and First Republic (FRC +4.9%).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, PSCF, FINZ, KRS
- Among the TBTFs, Citigroup (C +2.7%) and Bank of America (BAC +2.5%) are leading the way.
Dec. 5, 2014, 10:06 AM
- Among those counting on higher interest rates to boost profits are banks, insurers, and online brokers, and all are outliers to the upside in today's session after a strong November jobs report has rate hike expectations on the rise. The XLF is up 1%.
- TBTFs: Bank of America (BAC +2.1%), Citigroup (C +1.8%), JPMorgan (JPM +2.2%), Wells Fargo (WFC +1.2%)
- Regionals (KRE +1.9%): Regions Financial (RF +2.6%), KeyCorp (KEY +2.3%), Huntington (HBAN +1.5%), BB&T (BBT +1.6%), Zions (ZION +4%)
- Custodials: BNY Mellon (BNY), State Street (STT +1.6%), Northern Trust (NTRS +1.8%)
- Life insurers: MetLife (MET +2.1%), Prudential (PRU +2.5%), Lincoln National (LNC +2.3%)
- Online brokers: Schwab (SCHW +3.8%), E*Trade (ETFC +3%), Ameritrade (AMTD +2.7%)
- Previously: Short end of yield curve on the move after jobs number (Dec. 5, 2014)
- Previously: Bonds and dollar higher, gold slumps after strong jobs report (Dec. 5, 2014)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, FINZ, KRS
Sep. 17, 2014, 3:16 PM
- Leading markets higher as the reality of higher interest rates gets nearer is the financial sector (XLF +0.9%). Whether its banks, brokerages, or insurers, a higher benchmark rate for some time has been considered a key bullish catalyst. An especially large move is being seen in the online brokerage names who have been forced to forego money market fees for years thanks to ZIRP: E*Trade (ETFC +3%), Schwab(SCHW +3.2%), Ameritrade (AMTD +2%).
- Morgan Stanley (MS +1.8%), Bank of America (BAC +1.2%), JPMorgan (JPM +0.9%)
- U.S. Bancorp (USB +1.1%), Regions Financial (RF +2%), New York Community Bank (NYCB +0.8%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1.3%)
- MetLife (MET +0.6%), Voya Financial (VOYA +0.7%).
- Chubb(CB +0.4%), AIG (AIG +1.1%), Hartford (HIG +0.8%)
- Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, KBWP, RYF, KBWI, KRS, FINZ
Jul. 18, 2014, 10:26 AM
- Huntington Bancshares (HBAN +3.5%) tops early gainers on the S&P 500 after Q2 earnings rose 9%, beating analyst estimates thanks to gains in commercial and auto lending.
- HBAN's total Q2 lending climbed 9.1% to $45B, as billion commercial and industrial loans rose 7.6% Y/Y to $18.3B and auto loans - one of the few growth areas in consumer lending these days - surged 38% to $7.3B, reflecting "heightened consumer and business confidence in the economy," according to CEO Steve Steinour.
- The loan growth helped drive an 8.3% gain in net interest income to $460M; non-interest income fell fractionally to $250.1B due in part to a 33% drop in mortgage banking income.
- Net interest margin was 3.28%, down from 3.38% in Q2 a year ago but up from 3.27% in the previous quarter.
Apr. 17, 2014, 9:49 AM
- It's shaping up to be a 2nd day of losses post-earnings for Huntington Bancshares (HBAN -2%) with Raymond James removing the stock from its Strong Buy list.
- NIM fell 15 bps in Q1 even as funding costs dipped 7 bps, and management expects continued pressure. EVP David Anderson on the earnings call (transcript): "The larger pressure remains the competitive environment and fixed-rate loans renewing at current market yields."
- Earnings presentation slides
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
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
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
Jan. 6, 2014, 9:54 AM
Nov. 8, 2013, 10:41 AM
- Up sharply as interest rates fly higher (the 10-year is up 15 basis points to 2.75%) are the life insurers - all of whom have had their investment returns more than a little constrained by puny yields. IAK +2.4%
- MetLife (MET +5.9%), Prudential (PRU +4.5%), Lincoln National (LNC +6.8%), Hartford (HIG +3.1%).
- Also set to benefit from a steeper yield curve (if we're to believe their models) are the banks, and they're leading the S&P 500 higher. The TBTFs: Bank of America (BAC +3.3%), JPMorgan (JPM +3.1%), CItigroup (C +3.3%), Wells Fargo (WFC +2.6%). The regionals (KRE +3.4%): Huntington (HBAN +2.6%), Regions (RF +4.2%), PNC (PNC +2.8%), FIfth Third (FITB +3.4%), First Niagara (FNFG +2%), Keycorp (KEY +3.5%), Zions (ZION +4.1%), Comerica (CMA +3.1%).
- The XLF +1.9%.
- FInancial sector ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, KIE, SEF, IAT, IAI, IYG, IAK, FXO, PFI, KBWB, RKH, QABA, RWW, FINU, RYF, KRU, KBWR, PSCF, KBWP, KBWI, KRS, FINZ, FNCL
Oct. 10, 2013, 12:45 PM
Oct. 10, 2013, 9:01 AM
- Community bank acquisition fans get their tails in the air as Huntington Bancshares (HBAN) agrees to acquire Ohio's Camco Financial (CAFI) in a $97M transcation, based on last night's closing price of Huntington.
- Camco shareholders can choose to receive 0.7264 shares of HBAN stock or $6 per share in cash for their holdings. The sale is expected to close in 2014 H1.
- Camco has 22 branches, $800M in assets, and $600M in deposits.
- Huntington expects the deal to be accretive to EPS in year 1.
- CAFI + 44.6% premarket to $5.71.
- Press release.
Jul. 5, 2013, 12:51 PMRegional banks (KRE +2%) are the day's strongest performers - sailing through today's big rise in interest rates the way they cruised through June's increase. Interest rate margins are on the rise, economic growth should help sluggish loan volume, and the idea new bank capital rules will go easier on them than the TBTFs all factor in. Huntington (HBAN +2.9%), Regions (RF +1.8%), BB&T (BBT +1.9%), PNC (PNC +2.2%), Hudson City (HCBK +1.5%), Fifth Third (FITB +1.6%), SunTrust (STI +3.5%), KeyCorp (KEY +3%), Zions (ZION +3.5%), Comerica (CMA +2.7%), Popular (BPOP +1.2%). | Comment!
Jun. 20, 2013, 12:36 PMMostly in the green along with the life insurers today is much of the regional banking sector (KRE +0.5%) as a steeper yield curve is sure to boost their barely visible net interest margins. U.S. Bancorp (USB +0.1%), Huntington (HBAN +2.2%), New York Community (NYCB -0.1%), Regions (RF +0.7%), BB&T (BBT +1.2%), PNC (PNC +0.7%), SunTrust (STI +0.7%), KeyCorp (KEY +1.5%), People's Untied (PBCT +1.3%), Zions (ZION +1.9%), Comerica (CMA +1%). | Comment!
Apr. 17, 2013, 8:46 AMMore on Huntington Bancshares (HBAN) Q1 earnings: Net interest income of $8.9M, up 2% Y/Y - net interest margin of 3.42%, up 2 bps from a year ago. Noninterest income of $33.1M, off 12% Y/Y thanks to a $24.2M decrease in gain on sale of loans. Noninterest expense of $19.9M, off 4% Y/Y. Board approves quarterly dividend increase of 25% to $0.05, and $227M share repurchase, a 25% increase from the recently completed authorization. Tangible book value/share of $5.91, up from $5.78 in Q4, $5.71 a year ago. Shares -1.4% premarket. (PR) | Comment!
Sep. 27, 2012, 12:45 PMMidday top 10 gainers: CTC +71.53%. ROYL +31.38%. APPY +18.48%. TPX +16.5%. ULTR +15.6%. WZE +13.09%. STRM +12.7%. IGLD +12.62%. PNX +11.22%. PRAN +11.17%.
Top 10 Losers: PPHM -35.54%. CAFI -12.94%. SYUT -10.64%. CPHD -9.58%. MTE -9.02%. MITK -8.92%. CHYR -8%. CYTX -7.76%. FUL -7.37%. UBNT -7.07%. | Comment!
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