Huntington Bancshares Incorporated Declares Cash Dividend On Its Series I Preferred Stock
Dividend Announcement: Huntington Bancshares Incorporated declared a quarterly cash dividend of $356.25 per share on its 5.70% Series I Non-Cumulative Perpetual Preferred Stock, payable on September 2, 2025, to shareholders of record on August 15, 2025.
Company Overview: Huntington Bancshares is a regional bank holding company with $210 billion in assets, operating 968 branches across 13 states, providing a wide range of banking and financial services since its founding in 1866.
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- Quarterly Dividend Announcement: Huntington Bancshares declares a quarterly dividend of $0.3562 per share, consistent with previous distributions, indicating stable cash flow and profitability, which is likely to attract more investor attention.
- Forward Yield: The forward yield of 6.55% reflects the company's appeal in the current market environment, potentially boosting shareholder confidence and stabilizing the stock price.
- Payment Schedule: The dividend is payable on June 1, with a record date of May 15 and an ex-dividend date also on May 15, ensuring shareholders receive timely returns and strengthening the relationship between the company and its investors.
- Positive Market Reaction: As regional bank stocks rise due to merger prospects, the announcement of Huntington's dividend may further drive its stock price up, enhancing overall market confidence in the company.
- Dividend Announcement: Huntington's Board of Directors declared a quarterly cash dividend of $356.25 per share on its 5.70% Series I Non-Cumulative Perpetual Preferred Stock, payable on June 1, 2026, reflecting the company's commitment to shareholder returns.
- Preferred Stock Dividend: Additionally, the Board set a quarterly cash dividend of $343.75 per share on its 5.50% Series L Non-Cumulative Perpetual Preferred Stock, payable on May 20, 2026, which further enhances investor confidence in the company's financial stability.
- Company Background: Huntington Bancshares Incorporated, with assets of $279 billion, was founded in 1866 and offers a comprehensive suite of banking, payments, wealth management, and risk management services, showcasing its strong position in the regional banking sector.
- Branch Network: Operating nearly 1,400 branches across 21 states, Huntington demonstrates its market leadership in serving small and middle-market businesses as well as consumers, indicating a robust operational footprint.
- Regional Banks Undervalued: Dory Wiley, CEO of Commerce Street Holdings, asserts that despite the overall poor performance of the financial sector, regional banks maintain strong fundamentals with high capital ratios and good deposits, indicating their potential value.
- Sustained Profitability Growth: Wiley notes that banks are currently valued at a forward P/E of only 10 times earnings, and with good growth rates, these stocks could realistically reach a valuation range of 15 to 18 times, reflecting market confidence in their future performance.
- Superior Credit Quality: He emphasizes that the credit underwriting quality in the banking sector is at its historical best, and while some individual banks may face weaknesses, the overall health of the industry provides reassurance to investors.
- Abundant Market Opportunities: Despite concerns over AI disruption, Wiley remains optimistic about investment opportunities in bank stocks, believing there is significant growth potential across small, mid, and large-cap banks that investors should consider.
- Earnings Report: Huntington Bank's Q4 earnings per share fell short of market expectations, with an 11% revenue growth overshadowed by higher-than-expected expenses, leading to a stock decline that reflects market concerns about future performance.
- Expense Growth: The company anticipates a 10% to 11% increase in expenses for 2026, exceeding investor expectations, partly due to one-time integration costs associated with the Vertex deal, which may impact investor confidence.
- Market Outlook: Despite the expense pressures, Huntington Bank remains optimistic about 2026, projecting revenue growth between 11% and 14%, indicating its competitive position and growth potential in the market.
- Operating Leverage: The bank achieved nearly a 3% increase in operating margins in 2025 and expects to expand margins by 1.5% to 2% in 2026, demonstrating a strong balance between profitability and reinvestment.
- Banking Resilience: Small and regional banks have demonstrated strong performance after enduring a 500 basis point rate shock, maintaining historical high capital ratios, indicating robust risk resilience and potential for increased profitability in the future.
- PE Ratio Advantage: While money center banks trade at forward PE ratios between 13 and 16, small and regional banks are priced below 11, growing faster, suggesting that investors can achieve higher returns by opting for smaller banks.
- Yield Attractiveness: For instance, Huntington offers a yield three times that of JP Morgan, highlighting the appeal of small banks in terms of yield distribution, which has garnered increased investor interest.
- Rapidly Growing Community Banks: Third Coast Bankshares and South Plains Financial in Texas are among the fastest-growing community banks, priced at or below 11 times forward PE ratios, showcasing their competitive edge and investment potential in the market.

Analyst Recommendation: RBC Capital maintains an "Outperform" rating for Huntington Bancshares Incorporated - Preferred Stock (NasdaqGS:HBANM) with a projected price target of $26.38/share, indicating a potential upside of 19.32% from its current price of $22.11/share.
Revenue and Earnings Projections: The projected annual revenue for Huntington Bancshares is estimated at $8,243 million, reflecting a 9.88% increase, with a non-GAAP EPS forecast of 1.76.
Institutional Holdings: There are currently 7 funds reporting positions in HBANM, with total institutional shares remaining stable at 993K, while some funds have decreased their holdings over the last quarter.
ETF Holdings Changes: Notable changes in ETF holdings include PFF reducing its shares by 8.89%, PGX decreasing by 4.85%, and GPRF increasing its shares by 22.76%, indicating varied sentiment among institutional investors.










