COLUMBUS, Ohio - Huntington Bancshares Incorporated (NASDAQ:HBAN) has announced that its Board of Directors has declared a quarterly cash dividend of $0.155 per common share, maintaining the same level as the previous quarter. The dividend is scheduled to be paid on January 2, 2025, to shareholders on record as of December 18, 2024.
The company also declared dividends on five series of its preferred stock. Shareholders of the Floating Rate Series B Non-Cumulative Perpetual Preferred Stock will receive a quarterly cash dividend of $19.02227465 per share, equivalent to $0.4755569 per depositary receipt share. The 5.625% Series F Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock dividend is set at $1,406.25 per share, which is $14.0625 per depositary share. Holders of the 4.450% Series G Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock will get $1,112.50 per share, or $11.1250 per depositary share. The 4.5% Series H Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock has a dividend of $11.25 per share, translating to $0.28125 per depositary share. Lastly, the 6.875% Series J Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock will have a dividend of $17.19 per share, or $0.42975 per depositary share. These dividends on preferred stock are payable on January 15, 2025, to shareholders on record as of January 1, 2025.
Huntington Bancshares, with $201 billion in assets, is a regional bank holding company headquartered in Columbus, Ohio. Founded in 1866, The Huntington National Bank and its affiliates offer a full range of banking, payments, wealth management, and risk management products and services to consumers, small and middle-market businesses, corporations, municipalities, and other organizations. The bank operates 975 branches across 12 states with certain businesses operating in extended geographies.
The announcement of these dividends reflects the company's commitment to shareholder returns. This information is based on a press release statement by Huntington Bancshares Incorporated.
In other recent news, U.S. regional banks have been exceeding Wall Street forecasts, with a surge in investment banking fees due to a rise in mergers and acquisitions (M&As). Among these, Huntington Bancshares reported robust third-quarter profits, surpassing expectations. The bank's strong performance is attributed to the continued uptick in M&As and the reopening of the initial public offerings market. However, Piper Sandler maintained an Underweight rating on Huntington Bancshares, expressing concerns over the bank's ambitious loan growth targets and asset sensitivity.
Simultaneously, regional banks have been actively pursuing M&As to remain competitive, with the most significant deal being SouthState's acquisition of Independent Bank Group (NASDAQ:IBTX). This consolidation trend is seen as a response to the challenges faced by regional banks, such as high interest rates and fierce competition for deposits.
Furthermore, Citi maintained a Buy rating on Huntington Bancshares, revising its earnings per share estimates following the bank's second-quarter disclosures. The bank reported second-quarter earnings of $0.30 per share, exceeding consensus estimates, leading to various firms adjusting their outlooks. Despite this, Baird downgraded the bank's stock to Neutral from Outperform, reflecting a cautious stance after a significant uptick in the bank's share performance. These developments underline the dynamic and evolving nature of the banking sector.
InvestingPro Insights
Huntington Bancshares Incorporated's (NASDAQ:HBAN) recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, the company currently offers a dividend yield of 3.91%, with its last ex-dividend date on September 17, 2024. More impressively, an InvestingPro Tip reveals that Huntington has maintained dividend payments for 54 consecutive years, underscoring its commitment to consistent shareholder value.
The bank's financial performance also appears robust. With a market capitalization of $22.31 billion and a P/E ratio of 14.44, Huntington seems reasonably valued compared to its peers. The company's profitability is evident from its operating income margin of 36.02% for the last twelve months as of Q2 2024.
Despite these positive indicators, investors should note that 7 analysts have revised their earnings downwards for the upcoming period, according to another InvestingPro Tip. This could signal potential headwinds in the near term.
For a more comprehensive analysis, InvestingPro offers additional tips and insights that could be valuable for investors considering Huntington Bancshares. The platform provides a total of 14 tips for HBAN, offering a deeper understanding of the company's financial health and market position.
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