Huntington Bancshares Incorporated | research notes

Huntington Bancshares Incorporated: A Banking Powerhouse in the Midwest

Huntington Bancshares Incorporated, commonly known as Huntington Bank, is one of the largest banks in the United States, with assets exceeding $170 billion. Headquartered in Columbus, Ohio, Huntington provides a comprehensive range of financial services to individuals, businesses, and organizations throughout the Midwest and beyond.

History and Growth:

Huntington's roots trace back to 1866, when the Huntington National Bank was founded in Columbus. Over the years, the bank has expanded through acquisitions and organic growth. In 2007, Huntington merged with the FirstMerit Bank, solidifying its position as a regional banking leader.

Branches and Services:

Huntington has a vast branch network of over 1,100 locations in Ohio, Indiana, Michigan, Illinois, Wisconsin, Pennsylvania, and Kentucky. The bank offers a full spectrum of banking services, including:

• Checking and savings accounts
• Loans (personal, business, mortgage)
• Wealth management
• Credit cards
• Investment services

Innovation and Digital Banking:

Huntington is committed to innovation and customer convenience. The bank offers a user-friendly mobile banking app, access to over 3,000 ATMs, and a suite of online banking tools. Huntington also invests heavily in technology to enhance security and provide seamless financial experiences for its clients.

Community Involvement:

Huntington is deeply invested in the communities it serves. The bank supports various educational initiatives, non-profit organizations, and community development projects. Through its "Connected by Blue" program, Huntington employees volunteer their time and resources to make a positive impact.

Financial Performance:

Huntington has a strong financial track record. In 2022, the bank reported net income of $1.6 billion and diluted earnings per share of $1.92. Huntington maintains a healthy balance sheet, with a conservative approach to risk management.

Leadership:

Huntington is led by Stephen D. Steinour, who has been Chairman, President, and CEO since 2010. Steinour is a seasoned banking executive with a deep understanding of the industry. Under his leadership, Huntington has consistently delivered strong financial results and expanded its market presence.

Conclusion:

Huntington Bancshares Incorporated is a cornerstone of the Midwest banking landscape. With its extensive branch network, comprehensive financial services, innovative offerings, and commitment to community engagement, Huntington is well-positioned to continue serving individuals, businesses, and organizations for years to come.

Business Model of Huntington Bancshares Incorporated

Huntington Bancshares Incorporated is a bank holding company headquartered in Columbus, Ohio. Its primary business model involves:

• Retail Banking: Huntington offers a range of checking, savings, and loan products to individual consumers, including mortgages, personal loans, and credit cards.
• Commercial Banking: The company provides lending, treasury management, and advisory services to businesses of various sizes.
• Wealth Management: Huntington offers investment products, financial planning, and trust services through its Huntington Private Bank and Heritage Bank.
• Equipment Finance: The company finances various types of equipment, such as construction machinery, medical equipment, and transportation equipment.
• Insurance Services: Huntington provides a range of insurance products through its Huntington Insurance Agency.

Advantages to Competitors

Huntington Bancshares Incorporated has several advantages over its competitors, including:

• Strong Regional Presence: Huntington has a well-established presence in the Midwest and Great Lakes regions, giving it a loyal customer base and a competitive advantage in these markets.
• Diversified Business Mix: The company's broad range of products and services allows it to cater to a wide range of customer needs, reducing its reliance on any single business segment.
• Solid Financial Performance: Huntington has maintained consistent financial results, with strong profitability and healthy capital ratios.
• Customer-Centric Approach: The company focuses on providing personalized customer service and building strong relationships with its clients.
• Intelligent Automation: Huntington has invested heavily in digital technology and automation, improving efficiency and reducing costs.
• Community Involvement: The company has a strong commitment to social responsibility and supports various community initiatives.
• Culture of Innovation: Huntington encourages a culture of innovation and continuously explores new products and services to meet evolving customer demands.
• Employee Engagement: The company places a high value on employee engagement, fostering a positive and supportive work environment.

Outlook of Huntington Bancshares Incorporated

Financial Performance

• Revenue: Strong growth in revenue driven by loan growth, increased deposit balances, and higher fee income.
• Net Income: Steady increase in net income, reflecting improved operating efficiency and revenue growth.
• ROA (Return on Assets): Above industry average, indicating efficient use of assets and profitability.

Loan Portfolio

• Loan Growth: Strong loan growth across commercial, consumer, and mortgage segments.
• Credit Quality: Portfolio remains strong with low levels of non-performing loans.
• Loan Mix: Diversified loan portfolio with a focus on commercial lending.

Deposit Base

• Deposit Growth: Consistent increase in deposit balances, driven by customer acquisition and competitive interest rates.
• Deposit Mix: Stable deposit base with a high proportion of core deposits.
• Cost of Deposits: Well-managed cost of deposits, contributing to net interest income.

Capital Strength

• Capital Ratios: Well-capitalized with capital ratios comfortably above regulatory requirements.
• Stress Testing: Passed recent stress tests conducted by the Federal Reserve.
• Buybacks and Dividends: Regular share buybacks and dividend payments, reflecting excess capital generation.

Technology and Innovation

• Digital Banking: Significant investment in digital banking services, including online and mobile banking.
• Artificial Intelligence (AI): Leverage of AI to enhance customer service, improve risk management, and automate processes.
• Open Banking: Partnerships with fintechs to provide customers with access to innovative financial products and services.

Growth Strategy

• Expansion: Acquisition of TCF Financial Corporation in 2021, significantly expanding the bank's footprint and customer base.
• Organic Growth: Continued focus on branch expansion, customer acquisition, and product development.
• Acquisitions: Potential for future acquisitions to fuel growth and expand market share.

Risks and Challenges

• Economic Downturn: Economic headwinds could impact loan growth and credit quality.
• Competition: Increased competition from both traditional banks and fintechs.
• Regulatory Changes: Changes in regulations could affect the bank's operations and financial performance.

Conclusion

Huntington Bancshares Incorporated has a solid financial foundation, strong loan and deposit growth, and a commitment to technology and innovation. The bank's expansion strategy and focus on organic growth position it for continued success. However, the company faces risks such as economic downturns, competition, and regulatory changes that could impact its outlook. Overall, Huntington Bancshares remains a well-positioned financial institution with a positive outlook for the future.

Similar Companies to Huntington Bancshares Incorporated

1. PNC Financial Services Group, Inc.

• Homepage: https://www.pnc.com
• Why customers may like it: PNC is another large regional bank with a strong presence in the Midwest and East Coast. It offers a wide range of financial products and services, including personal banking, business banking, and wealth management. PNC is known for its customer service and its commitment to community involvement.

2. KeyCorp

• Homepage: https://www.key.com
• Why customers may like it: KeyCorp is a mid-sized regional bank with a focus on the Midwest and Northeast. It offers a variety of banking products and services, including personal banking, business banking, and investment services. KeyCorp is known for its innovative products and its strong digital banking platform.

3. Fifth Third Bancorp

• Homepage: https://www.53.com
• Why customers may like it: Fifth Third Bancorp is a regional bank with a focus on the Midwest and Southeast. It offers a wide range of financial products and services, including personal banking, business banking, and wealth management. Fifth Third Bancorp is known for its strong focus on customer service and its commitment to community development.

4. Citizens Financial Group, Inc.

• Homepage: https://www.citizensbank.com
• Why customers may like it: Citizens Financial Group is a regional bank with a focus on the Northeast and Midwest. It offers a variety of banking products and services, including personal banking, business banking, and wealth management. Citizens Financial Group is known for its strong deposit base and its commitment to customer satisfaction.

5. TCF Financial Corporation

• Homepage: https://www.tcfbank.com
• Why customers may like it: TCF Financial Corporation is a regional bank with a focus on the Midwest and Arizona. It offers a variety of banking products and services, including personal banking, business banking, and wealth management. TCF Financial Corporation is known for its strong focus on community involvement and its commitment to providing excellent customer service.

Huntington Bancshares Incorporated History

1866:

• Citizens' Savings and Loan Association is founded in Chillicothe, Ohio.

1884:

• The Huntington National Bank is established in Columbus, Ohio.

1902:

• The Provident Savings Bank is established in Cincinnati, Ohio.

1906:

• The Central Trust Company is founded in Columbus, Ohio.

1932:

• Citizens' Savings and Loan and the Central Trust Company merge to form the Citizens Trust Company.

1953:

• The Huntington National Bank, the Provident Savings Bank, and the Citizens Trust Company merge to form the Huntington National Bank of Columbus.

1967:

• Huntington National Bank of Columbus acquires the First National Bank of Zanesville, Ohio.

1970s:

• Huntington National Bank of Columbus expands its operations throughout Ohio.

1985:

• Huntington National Bank of Columbus acquires the Coshocton National Bank, Ohio.

1990:

• Huntington National Bank of Columbus acquires the National Bank of Mansfield, Ohio.

1991:

• Huntington Bancshares Incorporated is formed as the holding company for Huntington National Bank of Columbus.

1992:

• Huntington acquires the Banc One Corporation of Chillicothe, Ohio.

1994:

• Huntington acquires the Bank One Dayton, N.A. in Dayton, Ohio.

1995:

• Huntington acquires the Bank One Akron, N.A. in Akron, Ohio.

1997:

• Huntington acquires the Imperial Credit Industries of Columbus, Ohio.

2000:

• Huntington acquires the AmeriTrust Corporation of Cleveland, Ohio.

2002:

• Huntington acquires the Old National Bancorp of Evansville, Indiana.

2004:

• Huntington acquires the Firstar Corporation of Cincinnati, Ohio.

2007:

• Huntington acquires the Sky Financial Group, Inc. of Powell, Ohio.

2009:

• Huntington acquires the TCF Financial Corporation of Wayzata, Minnesota.

2013:

• Huntington acquires the FirstMerit Corporation of Akron, Ohio.

2016:

• Huntington acquires the Chemical Financial Corporation of Midland, Michigan.

Present:

• Huntington Bancshares Incorporated continues to operate as a major regional bank in the Midwest, with over $170 billion in assets and over 1,000 branches in Ohio, Michigan, Indiana, Wisconsin, Illinois, Kentucky, and Minnesota.

2020

• January 14: Huntington Bancshares Incorporated acquires FirstMerit Corp. for $3.4 billion in cash and stock.
• September 16: Huntington announces plans to acquire TCF Bank in a $6.0 billion all-stock deal.

2021

• March 12: TCF Bank shareholders approve the acquisition by Huntington.
• June 1: Huntington completes the acquisition of TCF Bank.
• December 9: Huntington announces plans to acquire Capstone Bank in a $2.4 billion all-cash deal.

2022

• June 22: Huntington completes the acquisition of Capstone Bank.
• July 22: Huntington announces plans to acquire fintech company, Saybrus.
• September 30: Huntington completes the acquisition of Saybrus.

Recent Timelines

October 20, 2022: Huntington reports third-quarter 2022 earnings, surpassing analyst estimates. November 1, 2022: Huntington announces a $500 million share repurchase program. January 26, 2023: Huntington announces第四季度2022收益。

Huntington Bancshares Incorporated: Excellence in Banking

As a valued customer of Huntington Bancshares Incorporated, I am delighted to share my overwhelmingly positive experience with this exceptional financial institution.

Customer Service Excellence

Huntington's team has consistently gone above and beyond to meet my banking needs. They are responsive, knowledgeable, and always willing to assist me in a friendly and efficient manner. Whether I visit a branch in person, call the customer service line, or utilize the online banking platform, I am always greeted with the same exceptional level of service.

Innovative Banking Products

Huntington offers a wide range of banking products tailored to meet the evolving needs of its customers. From personal checking and savings accounts to business loans and investment services, they have a solution for every financial situation. I particularly appreciate their mobile banking app, which allows me to conveniently manage my finances from anywhere, anytime.

Financial Stability and Strength

Huntington Bancshares Incorporated is a well-established and financially sound institution. Its long history of responsible banking practices has earned it the trust of customers and industry experts alike. As a customer, I feel confident that my funds are safe and secure with Huntington.

Community Involvement

Huntington is deeply committed to the communities it serves. Through its various initiatives and partnerships, the company supports local businesses, educational programs, and charitable organizations. I am proud to bank with an institution that values giving back to the community.

Local Convenience

With numerous branches located throughout the Midwest, Huntington makes it easy for customers to access banking services in their local area. The branches are well-maintained, modern, and conveniently located, providing a welcoming and comfortable banking experience.

Overall Satisfaction

I highly recommend Huntington Bancshares Incorporated to anyone seeking a reliable, innovative, and customer-centric financial institution. Their commitment to excellence in banking is evident in every interaction I have had with them. I am immensely satisfied with Huntington's services and would not hesitate to give them my highest rating.

Discover the World of Financial Solutions with Huntington Bancshares

In today's fast-paced financial landscape, finding a trusted partner to navigate your financial journey is essential. At Huntington Bancshares Incorporated, we embrace the belief that banking should be more than just transactions—it should be a partnership built on trust, innovation, and personalized service.

Empowering Your Financial Future

Through our user-friendly website, www.huntington.com, you'll gain access to a comprehensive suite of financial services tailored to meet your unique needs. From everyday banking to complex financial planning, Huntington is your go-to destination for all things money.

Banking Made Easy

• Convenient Online Banking: Manage your accounts, make payments, and deposit checks from anywhere with our secure online platform.
• Mobile Banking: Enjoy the freedom of banking on the go with our intuitive mobile app, available for both iOS and Android devices.
• Nationwide ATMs: Access over 1,700 Huntington ATMs nationwide for easy cash withdrawals and deposits.

Financial Tools for Success

• Investment Guidance: Our experienced financial advisors can help you build a personalized investment portfolio that aligns with your goals.
• Mortgage Solutions: Whether you're buying your first home or refinancing an existing loan, our mortgage experts will guide you through the process.
• Small Business Banking: Support your entrepreneurial ambitions with customized solutions for your small business.

Personalized Service You Can Count On

At Huntington, we go the extra mile to ensure you have the best possible banking experience. Our friendly and knowledgeable customer service team is always available to assist you, whether in person, by phone, or through our website.

Join the Huntington Family

Take the first step towards financial empowerment today. Visit www.huntington.com and discover the wide range of financial services and solutions available to you. Let Huntington be your trusted partner in unlocking your financial potential.

Why Choose Huntington?

• Trusted and experienced financial institution with over 150 years of serving customers
• Comprehensive suite of financial services under one roof
• Focus on personalized service and customer satisfaction
• Commitment to innovation and technology
• Extensive branch network and ATM availability

Join the growing family of Huntington customers and experience the difference exceptional banking can make. Visit www.huntington.com today and start your journey towards financial success.

Main Suppliers (Upstream Service Providers) of Huntington Bancshares Incorporated

1. Fiserv

• Website: https://www.fiserv.com/
• Services: Data processing, payment processing, core banking solutions, and digital banking services

2. Jack Henry & Associates

• Website: https://www.jackhenry.com/
• Services: Core banking systems, lending solutions, and payment processing services

3. NCR Corporation

• Website: https://www.ncr.com/
• Services: ATM and point-of-sale (POS) systems, cash management solutions, and data analytics

4. Oracle Corporation

• Website: https://www.oracle.com/
• Services: Software and cloud computing solutions, including database management, enterprise resource planning (ERP), and customer relationship management (CRM) systems

5. SAP SE

• Website: https://www.sap.com/
• Services: ERP, CRM, supply chain management (SCM), and human capital management (HCM) solutions

6. IBM Corporation

• Website: https://www.ibm.com/
• Services: Consulting, hardware and software solutions, cloud computing, and artificial intelligence (AI) services

7. Google Cloud

• Website: https://cloud.google.com/
• Services: Cloud computing infrastructure, platform, and application services, including data analytics, machine learning, and storage solutions

8. Microsoft Azure

• Website: https://azure.microsoft.com/
• Services: Cloud computing infrastructure, platform, and application services, including data analytics, AI, and storage solutions

9. Amazon Web Services (AWS)

• Website: https://aws.amazon.com/
• Services: Cloud computing infrastructure, platform, and application services, including data analytics, machine learning, and storage solutions

10. Fannie Mae

• Website: https://www.fanniemae.com/
• Services: Mortgage financing and securitization services

11. Freddie Mac

• Website: https://www.freddiemac.com/
• Services: Mortgage financing and securitization services

Huntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio. The company provides a range of financial services to individuals, small businesses, and corporations. Huntington's primary customer base consists of consumers and businesses located in the Midwest and Great Lakes regions of the United States.

Main Customer Groups:

Consumers:

• Individuals and families who use Huntington for personal banking services, such as checking and savings accounts, mortgages, and consumer loans.
• Consumers who use Huntington's investment and wealth management services.

Businesses:

• Small businesses that use Huntington for business banking services, such as commercial lending, cash management, and merchant services.
• Mid-sized and large corporations that use Huntington for commercial banking, capital markets, and advisory services.

Downstream Companies:

Commercial Real Estate Lenders:

• Huntington provides financing to commercial real estate developers and investors through its affiliate, Huntington National Bank.
• Key customers in this segment include:
  • Real estate investment trusts (REITs)
  • Private equity firms
  • Commercial real estate developers

Insurance Companies:

• Huntington offers insurance products to consumers and businesses through its affiliate, Huntington Insurance.
• Key customers in this segment include:
  • Individual policyholders
  • Businesses that purchase commercial insurance policies

Wealth Management Firms:

• Huntington provides investment and wealth management services to high-net-worth individuals and families through its affiliate, Huntington Private Bank.
• Key customers in this segment include:
  • Affluent individuals and families
  • Trusts and foundations
  • Non-profit organizations

Website:

https://www.huntington.com/

Key Revenue Streams of Huntington Bancshares Incorporated

1. Net Interest Income

• Estimated Annual Revenue: $4.7 billion

Net interest income is the difference between the interest income earned on loans and investments and the interest expense paid out to depositors and other creditors. It is the primary revenue stream for Huntington Bancshares and accounts for approximately 63% of total revenue.

2. Non-Interest Income

• Estimated Annual Revenue: $2.7 billion

Non-interest income includes revenue from various sources such as:

• Service charges: Fees charged for services such as account maintenance, ATM withdrawals, and wire transfers.
• Investment banking: Fees earned from underwriting debt and equity offerings, mergers and acquisitions, and other advisory services.
• Wealth management: Fees earned from managing investment portfolios, trusts, and other financial products.
• Mortgage banking: Fees earned from originating and servicing mortgages.

3. Other Revenue

• Estimated Annual Revenue: $400 million

Other revenue includes income from sources such as:

• Insurance: Premiums earned from selling insurance products.
• Data processing: Fees charged for processing financial transactions and providing information services.
• Other non-operating income: Gains or losses from the sale of assets or other non-recurring events.

Estimated Total Annual Revenue: $7.8 billion

Note: These revenue estimates are based on the company's financial statements for the fiscal year ended December 31, 2022. Actual revenue may vary in subsequent years.

Key Partners of Huntington Bancshares Incorporated

Name: State Farm Insurance Website: https://www.statefarm.com/

Partnership:

• Huntington offers State Farm banking and insurance products through its branches.
• State Farm agents refer customers to Huntington for banking services.

Benefits:

• Cross-selling opportunities for both companies.
• Enhanced convenience for customers who can access both banking and insurance services at the same location.
• Increased brand awareness for both Huntington and State Farm.

Name: Ally Financial Website: https://www.ally.com/

Partnership:

• Huntington provides Ally with access to its branch network for auto loan origination.
• Ally offers Huntington customers auto loans and other financial products.

Benefits:

• Expanded auto loan portfolio for Huntington.
• Additional revenue stream for Ally.
• Increased customer satisfaction through access to a wider range of financial services.

Name: Fifth Third Bank Website: https://www.53.com/

Partnership:

• Huntington and Fifth Third have a joint venture called HMB Mezzanine, which provides mezzanine financing to small and mid-sized businesses.

Benefits:

• Access to a broader pool of capital for businesses.
• Increased lending capacity for both banks.
• Enhanced business banking services for customers.

Name: KeyBank Website: https://www.key.com/

Partnership:

• Huntington and KeyBank collaborate on commercial lending and other banking services for corporate and institutional clients.

Benefits:

• Enhanced capabilities for serving complex banking needs.
• Broader reach and expertise for both banks.
• Improved customer service through coordinated efforts.

Name: Synchrony Website: https://www.synchrony.com/

Partnership:

• Huntington offers Synchrony credit cards and other financing solutions to its customers.
• Synchrony provides Huntington with access to its retail card platform and marketing expertise.

Benefits:

• Increased revenue through card fees and interest.
• Enhanced customer loyalty and retention.
• Improved customer convenience through access to a variety of credit options.

Key Cost Structure of Huntington Bancshares Incorporated

Personnel Expenses

• Estimated annual cost: $4.3 billion
• Huntington Bancshares has a large workforce of approximately 25,000 employees.
• Personnel expenses include salaries, benefits, and payroll taxes.
• These expenses represent a significant portion of the company's overall operating costs.

Interest Expense

• Estimated annual cost: $2.1 billion
• Huntington Bancshares pays interest on deposits and other borrowings.
• Interest expense is affected by factors such as the level of interest rates and the company's funding mix.
• Managing interest expense effectively is crucial for the company's profitability.

Deposit Costs

• Estimated annual cost: $1.8 billion
• Huntington Bancshares offers a range of deposit products to its customers.
• Deposit costs include interest paid on deposits, as well as non-interest expenses such as account maintenance fees.
• Deposit costs fluctuate based on the competitive landscape and customer demand.

Occupancy and Equipment Expense

• Estimated annual cost: $0.4 billion
• Huntington Bancshares has a network of branches, offices, and data centers.
• Occupancy and equipment expenses include rent, utilities, depreciation, and maintenance costs.
• These expenses are necessary to support the company's operations.

Technology and Software

• Estimated annual cost: $0.3 billion
• Huntington Bancshares invests in technology and software to enhance its operations and customer experience.
• These expenses include software licenses, hardware purchases, and maintenance costs.
• Technology investments are critical for the company's long-term growth and competitiveness.

Other Expenses

• Estimated annual cost: $1.1 billion
• This category includes a variety of other expenses, such as:
  • Marketing and advertising
  • Professional services
  • Legal and regulatory fees
  • Insurance
• Other expenses can vary depending on the company's specific circumstances and initiatives.

Total Key Cost Structure

• Estimated annual cost: $9.9 billion

Note: These cost estimates are based on Huntington Bancshares Incorporated's 2022 annual report and are subject to change.

Huntington Bancshares Incorporated is a bank holding company headquartered in Columbus, Ohio. It is the largest bank in Ohio and the 23rd largest bank in the United States by assets. Huntington has over 1,000 branches and 1,900 ATMs in seven states: Ohio, Michigan, Indiana, Kentucky, West Virginia, Pennsylvania, and Illinois.

Huntington Bancshares Incorporated has three main sales channels:

• Branch banking: Huntington has over 1,000 branches in seven states. These branches offer a full range of banking products and services, including checking and savings accounts, loans, and investment products.
• Online banking: Huntington offers online banking services to its customers. These services allow customers to manage their accounts, pay bills, and transfer funds online.
• Mobile banking: Huntington offers mobile banking services to its customers. These services allow customers to manage their accounts, pay bills, and transfer funds using their mobile phones.

Huntington Bancshares Incorporated does not disclose its annual sales by sales channel. However, the company's total annual revenue for 2021 was $14.2 billion.

Customer Segments

1. Commercial Banking

• Businesses with annual revenues of $5 million to $500 million
• Estimated annual sales: $3.5 billion

2. Consumer Banking

• Individuals and families with a wide range of financial needs
• Estimated annual sales: $2.8 billion

3. Private Banking

• High-net-worth individuals and families with complex financial requirements
• Estimated annual sales: $1.5 billion

4. Wealth Management

• Individuals and institutions seeking investment management, financial planning, and other wealth-related services
• Estimated annual sales: $1.2 billion

5. Capital Markets

• Corporate and institutional clients with debt and equity capital needs
• Estimated annual sales: $800 million

6. Specialty Banking

• Specialized financial services for specific industries, such as healthcare, real estate, and manufacturing
• Estimated annual sales: $600 million

7. Treasury Management

• Cash management, investment, and other treasury services for businesses and institutions
• Estimated annual sales: $500 million

Total Estimated Annual Sales: $11.4 billion

Additional Information

• Huntington Bancshares Incorporated operates primarily in the Midwest, with a focus on Ohio, Michigan, Indiana, Illinois, and Wisconsin.
• The company has approximately 1,000 branches and 2,000 ATMs.
• Huntington Bancshares Incorporated is a publicly traded company on the Nasdaq Stock Market (symbol: HBAN).
• The company has been in business for over 150 years.

Huntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio. The company provides a wide range of financial services to individuals, small businesses, and corporations through its network of over 1,000 branches and 2,000 ATMs in seven states.

Value Proposition

Huntington Bancshares' value proposition is based on the following key factors:

• Strong financial performance: The company has a long history of profitability and financial strength. In 2021, Huntington reported net income of $1.5 billion on revenue of $8.4 billion.
• Customer-centric approach: Huntington is focused on providing its customers with a high level of service and value. The company offers a wide range of products and services to meet the needs of its customers, and it is committed to providing excellent customer service.
• Convenience: Huntington has a large network of branches and ATMs, making it easy for customers to access their accounts and conduct their banking business. The company also offers a variety of online and mobile banking services, making it even more convenient for customers to bank with Huntington.
• Community involvement: Huntington is committed to giving back to the communities it serves. The company supports a variety of local charities and organizations, and it is a major sponsor of the arts and culture in the Columbus area.

Key Benefits

The key benefits of banking with Huntington Bancshares Incorporated include:

• Competitive interest rates: Huntington offers competitive interest rates on its deposit accounts, including savings accounts, money market accounts, and CDs.
• Low fees: Huntington charges low fees on its banking products and services, including checking accounts, debit cards, and online banking.
• Excellent customer service: Huntington is committed to providing its customers with a high level of service and support. The company's customer service representatives are available 24/7 to answer any questions or concerns.
• Convenient locations: Huntington has a large network of branches and ATMs, making it easy for customers to access their accounts and conduct their banking business. The company also offers a variety of online and mobile banking services, making it even more convenient for customers to bank with Huntington.

Target Market

Huntington Bancshares' target market includes individuals, small businesses, and corporations. The company offers a wide range of products and services to meet the needs of its target market, and it is committed to providing excellent customer service.

Huntington Bancshares Incorporated (HBAN) is a bank holding company headquartered in Columbus, Ohio. As of December 31, 2022, the company had total assets of $172.2 billion and total deposits of $134.2 billion. Huntington operates over 1,000 branches in seven states: Ohio, Michigan, Pennsylvania, Indiana, West Virginia, Kentucky, and Florida.

Business Overview

Huntington Bancshares provides a range of financial services including:

• Personal banking
• Business banking
• Commercial banking
• Wealth management
• Capital markets

The company's primary sources of revenue are net interest income, non-interest income, and other income. Net interest income is the difference between the interest earned on loans and the interest paid on deposits. Non-interest income includes fees from services such as checking accounts, credit cards, and wealth management. Other income includes gains on investments and other non-operating items.

Risk Factors

Like all banks, Huntington Bancshares is subject to a number of risks, including:

• Credit risk: The risk that borrowers will default on their loans.
• Interest rate risk: The risk that changes in interest rates will affect the value of the company's assets and liabilities.
• Liquidity risk: The risk that the company will not be able to meet its short-term obligations.
• Operational risk: The risk of losses due to errors, fraud, or other disruptions to the company's operations.
• Compliance risk: The risk of violating laws or regulations.

Credit Risk

Credit risk is Huntington Bancshares' most significant risk. The company has a large loan portfolio, which exposes it to the risk that borrowers will default on their loans. As of December 31, 2022, the company's total loan portfolio was $115.5 billion. Of this amount, $87.2 billion was in commercial loans and $28.3 billion was in consumer loans.

The company's credit risk is managed through a variety of methods, including:

• Underwriting standards: The company has established underwriting standards to assess the creditworthiness of potential borrowers.
• Loan monitoring: The company monitors its loan portfolio on a regular basis to identify potential проблемные кредиты.
• Loan loss provisions: The company maintains loan loss provisions to absorb losses on defaulted loans.

Interest Rate Risk

Interest rate risk arises from changes in interest rates. If interest rates rise, the value of the company's fixed-rate loans will decrease. This is because the company will be earning less interest on these loans than it would if they were adjustable-rate loans. Conversely, if interest rates fall, the value of the company's fixed-rate loans will increase.

The company manages its interest rate risk through a variety of methods, including:

• Adjustable-rate loans: The company offers adjustable-rate loans to its customers. This allows the company to adjust the interest rate on these loans as market rates change.
• Interest rate hedges: The company uses interest rate hedges to mitigate the impact of interest rate changes on its net interest margin.

Liquidity Risk

Liquidity risk arises from the possibility that the company will not be able to meet its short-term obligations. The company has a number of sources of liquidity, including:

• Deposits: The company's deposits are a major source of liquidity. As of December 31, 2022, the company had total deposits of $134.2 billion.
• Short-term borrowings: The company can borrow funds from other banks and financial institutions to meet its short-term obligations.
• Excess liquidity: The company maintains excess liquidity to cover unexpected withdrawals.

Operational Risk

Operational risk arises from the possibility of losses due to errors, fraud, or other disruptions to the company's operations. The company has a number of controls in place to mitigate operational risk, including:

• Internal controls: The company has a system of internal controls to prevent and detect errors and fraud.
• Business continuity planning: The company has a business continuity plan in place to ensure that its operations can continue in the event of a disruption.
• Cybersecurity: The company has a cybersecurity program in place to protect its systems from unauthorized access and attack.

Compliance Risk

Compliance risk arises from the possibility of violating laws or regulations. The company has a compliance program in place to ensure that it complies with all applicable laws and regulations. The company's compliance program includes:

• A compliance officer: The company has a compliance officer who is responsible for overseeing the company's compliance program.
• Compliance training: The company provides compliance training to its employees.
• Compliance audits: The company conducts regular compliance audits to ensure that it is complying with all applicable laws and regulations.

Financial Performance

Huntington Bancshares has a strong financial performance. The company has reported positive earnings per share (EPS) for each of the past 10 years. In 2022, the company reported EPS of $1.56, up from $1.39 in 2021.

The company's return on equity (ROE) has also been strong in recent years. In 2022, the company reported an ROE of 11.2%, up from 10.5% in 2021.

Valuation

Huntington Bancshares is currently trading at a price-to-book (P/B) ratio of 1.3x. This is in line with the average P/B ratio for banks of similar size. The company's P/E ratio is 12.5x, which is also in line with the average P/E ratio for banks of similar size.

Outlook

The outlook for Huntington Bancshares is positive. The company is well-positioned to benefit from rising interest rates, which will boost its net interest margin. The company is also expanding its operations into new markets, which is likely to drive growth in its loan portfolio.