Latest news with #HuntingtonBancsharesInc
Yahoo
7 days ago
- Business
- Yahoo
Is SPDR S&P Regional Banking ETF (KRE) a Strong ETF Right Now?
Launched on 06/19/2006, the SPDR S&P Regional Banking ETF (KRE) is a smart beta exchange traded fund offering broad exposure to the Financials ETFs category of the market. For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment. Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency. If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies. Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance. While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results. The fund is sponsored by State Street Global Advisors. It has amassed assets over $3.24 billion, making it one of the larger ETFs in the Financials ETFs. This particular fund, before fees and expenses, seeks to match the performance of the S&P Regional Banks Select Industry Index. The S&P Regional Banks Select Industry Index represents the regional banks segment of the S&P Total Market Index. Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same. Operating expenses on an annual basis are 0.35% for this ETF, which makes it one of the least expensive products in the space. It's 12-month trailing dividend yield comes in at 2.77%. Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. For KRE, it has heaviest allocation in the Financials sector --about 100% of the portfolio. Taking into account individual holdings, Huntington Bancshares Inc (HBAN) accounts for about 3% of the fund's total assets, followed by East West Bancorp Inc (EWBC) and M + T Bank Corp (MTB). The top 10 holdings account for about 28.14% of total assets under management. The ETF has lost about -5.92% so far this year and is up about 18.49% in the last one year (as of 05/27/2025). In the past 52-week period, it has traded between $46.12 and $68.90. The fund has a beta of 0.87 and standard deviation of 31.92% for the trailing three-year period, which makes KRE a high risk choice in this particular space. With about 142 holdings, it effectively diversifies company-specific risk. SPDR S&P Regional Banking ETF is an excellent option for investors seeking to outperform the Financials ETFs segment of the market. There are other ETFs in the space which investors could consider as well. Invesco KBW Regional Banking ETF (KBWR) tracks KBW Nasdaq Regional Banking Index and the iShares U.S. Regional Banks ETF (IAT) tracks Dow Jones U.S. Select Regional Banks Index. Invesco KBW Regional Banking ETF has $47.26 million in assets, iShares U.S. Regional Banks ETF has $604.61 million. KBWR has an expense ratio of 0.35% and IAT charges 0.40%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Financials ETFs. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports M&T Bank Corporation (MTB) : Free Stock Analysis Report Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report East West Bancorp, Inc. (EWBC) : Free Stock Analysis Report iShares U.S. Regional Banks ETF (IAT): ETF Research Reports Invesco KBW Regional Banking ETF (KBWR): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
19-04-2025
- Business
- Yahoo
Huntington CFO says loan growth is boosting profit as businesses proceed with ‘cautious optimism' amid tariff uncertainty
Good morning. There's increasing uncertainty surrounding tariffs. However, many small businesses and middle-market companies continue to seek growth opportunities. Customers are showing resilience, said Zachary Wasserman, CFO of Huntington Bancshares Inc. (No. 375 on the Fortune 500), a $210 billion asset regional bank holding company headquartered in Columbus, Ohio. Huntington operates 968 branches in 13 states. What he's hearing from clients is 'cautious optimism' and, particularly on the business side, a lot of strong preparation to manage through an uncertain environment, Wasserman said. But for companies in industries with supply chains that are most exposed to the impact of tariffs, 'there's more trepidation,' he added. Small businesses have less resilience in terms of their financial strength, so there's somewhat more concern, Wasserman said. 'Generally what we're seeing in sentiment and in words is not fully being reflected in activity,' he said. 'We continue to see growth. We continue to see expansion." The bank's loan pipeline, a projection of the likely closings of loans, grew by about 5% in the first two weeks of Q2. 'That's an indication that there's still an expectation for expansion and for investment on the part of commercial customers,' he said. For Q1, Huntington reported on Thursday that net income was $527 million, marking a 26% increase year over year, while net interest income grew 11% year over year, due to strong loan and deposit growth. Average total loans increased 7% to $130.9 billion year over year. Commercial loans grew $2.2 billion or 3% from the prior quarter and 8% year over year to $5.8 billion. For net interest income, Huntington increased its full-year 2025 guidance to a 5%-7% growth range, up from the previously stated 4%-6% range. In response to the earnings beat, its shares were up by 3% at market close on Thursday. During times of uncertainty, it's critical to mitigate risk. But there's also an opportunity to innovate and create paths to future growth. 'We generally operate from a position of opportunity,' Wasserman told me. In March 2023, three regional banks—Silicon Valley Bank (SVB), Signature Bank, and First Republic—failed in just a few days. It was triggered by SVB's bank run, the biggest in more than a decade. It created a ripple effect across the financial industry. Global industry regulators had to step in to prevent the situation from affecting more regional banks. But Hungtington saw the events of 2023 as an opportunity. When many banks pulled back due to liquidity, capital, or credit concerns, Huntington chose to invest for long-term growth, CEO Stephen Steinour said on Thursday's earnings call. 'We took share and accelerated new customer acquisition,' he explained. 'We hired hundreds of talented bankers, added capabilities and expertise and executed very well.' This has prepared Huntington for the current uncertain times, Steinour said. 'Those efforts are now helping us deliver leading deposit and loan growth,' he said. Huntington's 'risk appetite,' is defined as aggregate, moderate to low, Wasserman said. 'It's designed to help us to live throughout an entire economic cycle,' he said. As CFO, I asked him what external factors he'll be closely monitoring. 'I think the path of inflation and, therefore, interest rates is something we'll need to watch very carefully,' Wasserman said. 'We need to see a resolution to some of the discussions around tariffs, which are uncertain at this point, and it's mainly the uncertainty that is causing some potential risk.' Have a good weekend. See you on Monday. Sheryl This story was originally featured on
Yahoo
18-04-2025
- Business
- Yahoo
Huntington Bancshares Inc (HBAN) Q1 2025 Earnings Call Highlights: Strong Financial Performance ...
Earnings Per Share (EPS): $0.34 Return on Tangible Common Equity (ROTCE): 16.7% Preprovision Net Revenue (PPNR): $783 million, 24% year-over-year growth Average Loan Growth: $2.7 billion or 2.1% from the prior quarter Average Deposit Growth: $2.2 billion or 1.4% versus prior quarter Common Equity Tier 1 (CET1): 10.6%, increased by 40 basis points from last year Tangible Book Value Per Share: Increased by over 13% year over year Net Charge-Offs: 26 basis points Allowance for Credit Losses: 1.87% Net Interest Income Growth: $31 million or 2.2% growth in the quarter Net Interest Margin (NIM): 3.1%, up 7 basis points from the prior quarter Noninterest Income Growth: 6% or $27 million from the prior year Payments Revenue Growth: 6% year over year Wealth Management Fees Growth: 15% year over year Capital Markets Growth: 20% year over year Noninterest Expense: Decreased by $26 million sequentially Share Repurchase Authorization: $1 billion multiyear program Warning! GuruFocus has detected 4 Warning Sign with HBAN. Release Date: April 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Huntington Bancshares Inc (NASDAQ:HBAN) reported strong loan and deposit growth, with average loans increasing by almost $9 billion and deposits by $11 billion year over year. The company achieved a 10% year-over-year revenue growth and a 24% increase in pre-provision net revenue (PPNR), indicating robust financial performance. Net interest margin improved to 3.1%, supported by disciplined deposit pricing and effective management of interest rate risks. Huntington Bancshares Inc (NASDAQ:HBAN) maintained strong credit performance with net charge-offs at 26 basis points and an allowance for credit losses at 1.87%. The company announced a $1 billion multiyear share repurchase authorization, reflecting confidence in its capital position and future growth prospects. The economic outlook for 2025 is uncertain, with increased probability of adverse scenarios that could create headwinds for the industry. Criticized asset ratio increased to 3.98%, indicating some deterioration in asset quality. Noninterest income growth is subject to market conditions, particularly in areas like M&A advisory, which are sensitive to economic uncertainty. The company is cautious about loan growth in the second half of the year, reflecting potential economic challenges. There is a potential for modest drag from the hedging program on net interest margin, depending on future interest rate movements. Q: The net interest margin came in higher than expectations. Should we expect flat net interest margin trends relative to the 3.10%, or should we consider interest recoveries? A: Zachary Wasserman, CFO, explained that the outperformance was primarily due to better-than-expected deposit pricing. The current run rate is around 3.07%, and under most scenarios, the net interest margin is expected to remain flat around this level for the rest of the year. Q: The $1 billion buyback authorization is interesting. Is this a message of flexibility to support your stock amid uncertainty? A: Stephen Steinour, CEO, stated that the buyback provides flexibility for capital deployment. While they expect modest buybacks this year, the authorization allows for multi-year opportunities depending on economic conditions. Q: Can you provide more color on the success in deposit cost management? A: Zachary Wasserman, CFO, highlighted that the success was due to a consistent plan around deposit beta, including decreasing the mix of CDs, shortening their duration, and acquiring deposits in money market accounts. The strategy has been executed well, outperforming expectations. Q: How did the quarter evolve, and have you seen any weakness in the economy affecting client behavior? A: Stephen Steinour, CEO, noted that the quarter started strong with a robust pipeline, and each month performed well. While some activities were deferred, the pipeline for the second quarter remains strong, indicating continued momentum. Q: What are you hearing from clients since April 2 regarding their sentiment and actions in this environment? A: Stephen Steinour, CEO, mentioned that clients not reliant on imports or exports feel more bullish, while those affected by tariffs are more cautious. Overall, there are pockets of strength, and the diversified portfolio helps manage varying impacts. Q: How has the uncertain backdrop impacted your CECL model and reserve levels? A: Brendan Lawlor, Chief Credit Officer, explained that they model multiple scenarios, and as economic scenarios have softened, more risk is picked up through quantitative modeling. The strong reserve coverage remains consistent. Q: Can you discuss the pipeline for building out in the Carolinas and Texas, and any new verticals planned for the year? A: Stephen Steinour, CEO, stated that they plan to add one to two new verticals each year and are accelerating branch expansion in the Carolinas. They continue to increase capabilities in various markets, including Chicago. Q: How do you expect the drag from the hedging program to evolve throughout the year? A: Zachary Wasserman, CFO, indicated that the hedging drag is expected to be neutral by mid-year, with a potential slight drag by year-end. The strategy is to maintain a neutral position through the end of the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
Huntington Bancshares Inc (HBAN) Q1 2025 Earnings Call Highlights: Strong Financial Performance ...
Earnings Per Share (EPS): $0.34 Return on Tangible Common Equity (ROTCE): 16.7% Preprovision Net Revenue (PPNR): $783 million, 24% year-over-year growth Average Loan Growth: $2.7 billion or 2.1% from the prior quarter Average Deposit Growth: $2.2 billion or 1.4% versus prior quarter Common Equity Tier 1 (CET1): 10.6%, increased by 40 basis points from last year Tangible Book Value Per Share: Increased by over 13% year over year Net Charge-Offs: 26 basis points Allowance for Credit Losses: 1.87% Net Interest Income Growth: $31 million or 2.2% growth in the quarter Net Interest Margin (NIM): 3.1%, up 7 basis points from the prior quarter Noninterest Income Growth: 6% or $27 million from the prior year Payments Revenue Growth: 6% year over year Wealth Management Fees Growth: 15% year over year Capital Markets Growth: 20% year over year Noninterest Expense: Decreased by $26 million sequentially Share Repurchase Authorization: $1 billion multiyear program Warning! GuruFocus has detected 4 Warning Sign with HBAN. Release Date: April 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Huntington Bancshares Inc (NASDAQ:HBAN) reported strong loan and deposit growth, with average loans increasing by almost $9 billion and deposits by $11 billion year over year. The company achieved a 10% year-over-year revenue growth and a 24% increase in pre-provision net revenue (PPNR), indicating robust financial performance. Net interest margin improved to 3.1%, supported by disciplined deposit pricing and effective management of interest rate risks. Huntington Bancshares Inc (NASDAQ:HBAN) maintained strong credit performance with net charge-offs at 26 basis points and an allowance for credit losses at 1.87%. The company announced a $1 billion multiyear share repurchase authorization, reflecting confidence in its capital position and future growth prospects. The economic outlook for 2025 is uncertain, with increased probability of adverse scenarios that could create headwinds for the industry. Criticized asset ratio increased to 3.98%, indicating some deterioration in asset quality. Noninterest income growth is subject to market conditions, particularly in areas like M&A advisory, which are sensitive to economic uncertainty. The company is cautious about loan growth in the second half of the year, reflecting potential economic challenges. There is a potential for modest drag from the hedging program on net interest margin, depending on future interest rate movements. Q: The net interest margin came in higher than expectations. Should we expect flat net interest margin trends relative to the 3.10%, or should we consider interest recoveries? A: Zachary Wasserman, CFO, explained that the outperformance was primarily due to better-than-expected deposit pricing. The current run rate is around 3.07%, and under most scenarios, the net interest margin is expected to remain flat around this level for the rest of the year. Q: The $1 billion buyback authorization is interesting. Is this a message of flexibility to support your stock amid uncertainty? A: Stephen Steinour, CEO, stated that the buyback provides flexibility for capital deployment. While they expect modest buybacks this year, the authorization allows for multi-year opportunities depending on economic conditions. Q: Can you provide more color on the success in deposit cost management? A: Zachary Wasserman, CFO, highlighted that the success was due to a consistent plan around deposit beta, including decreasing the mix of CDs, shortening their duration, and acquiring deposits in money market accounts. The strategy has been executed well, outperforming expectations. Q: How did the quarter evolve, and have you seen any weakness in the economy affecting client behavior? A: Stephen Steinour, CEO, noted that the quarter started strong with a robust pipeline, and each month performed well. While some activities were deferred, the pipeline for the second quarter remains strong, indicating continued momentum. Q: What are you hearing from clients since April 2 regarding their sentiment and actions in this environment? A: Stephen Steinour, CEO, mentioned that clients not reliant on imports or exports feel more bullish, while those affected by tariffs are more cautious. Overall, there are pockets of strength, and the diversified portfolio helps manage varying impacts. Q: How has the uncertain backdrop impacted your CECL model and reserve levels? A: Brendan Lawlor, Chief Credit Officer, explained that they model multiple scenarios, and as economic scenarios have softened, more risk is picked up through quantitative modeling. The strong reserve coverage remains consistent. Q: Can you discuss the pipeline for building out in the Carolinas and Texas, and any new verticals planned for the year? A: Stephen Steinour, CEO, stated that they plan to add one to two new verticals each year and are accelerating branch expansion in the Carolinas. They continue to increase capabilities in various markets, including Chicago. Q: How do you expect the drag from the hedging program to evolve throughout the year? A: Zachary Wasserman, CFO, indicated that the hedging drag is expected to be neutral by mid-year, with a potential slight drag by year-end. The strategy is to maintain a neutral position through the end of the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
