저자: SteveSteinour · 외국인
요약 보기
Huntington이 텍사스 지역은행 Veritex를 전부 주식 교환 방식으로 약 20억 달러에 인수 발표. 2분기 실적은 일회성 항목 제외 시 컨센서스를 크게 상회(조정 기준 약 16% 상회), 순이자수익 3% 증가, 대손상각 20bp로 양호. 행정부 규제 완화 분위기와 감가상각 등 감세법안이 설비투자와 대출 성장에 긍정적이라는 입장. 관세 불확실성은 존재하나 경기 기저는 견조하다고 평가.
다듬은 글
This morning we got a real bank merger. One of my favorites, Huntington Bank sharers, the Ohio based regional bank announced it's buying the Texas-based regional bank Veritex in an all stock deal that values the target at just under $2 billion. Now in the grand scheme of things, this is a small transaction.
I didn't even know Veritex, but it helps Huntington grow in Texas, a market where it was already expanding aggressively. Plus, the company also pre-announced most of the key lines of its second quarter earnings report. But due Friday, it look numbers look pretty darn good. When you back out some one-time items, Huntington posted solid earnings with better than expected net interest income and fine looking credit quality metrics.
So, let's dig deeper with Steve Stiner. He's the chairman, president CEO of Huntington Banks here. Get a better read situation. Mr. Steiner, welcome back to Mad Money. Jim, great to be with you again. Thank Okay, so Steve, let's talk about why you want to expand in Texas, how good that market is, and why Veritex is the right partner.
Well, Jim, as you know, we're very large in the Midwest, and as we look to diversify our earnings and and revenue capabilities uh throughout uh high growth areas, Texas is a logical uh next expansion for us. We've been there since 2009. We've had great growth and success, and we've got 5.6 billion in loans outstanding.
will cross six billion this year. Anyway, we've got a couple hundred employees in Texas. We call them colleagues and so we we're familiar with it. Texas itself is an economic powerhouse and we're this very excited to be going there with Veritex, a great organization. It's interesting in the conference call, Steve, I thought it was very very poignant when you said, look, they have an incredible story.
It's very different story from most of the banks you deal with. And they even had this fellow Malcolm Holland who I guess I imagine must be some incredible entrepreneur that a lot of people want to do business with and he's staying on. He is. And think about this. He started the bank in 2010. Remember how tough it was then.
And uh and they have just been on a a role since. Malcolm is an important leader for us going forward. We partner well with banks like we did with TCF four years ago and uh and that has proven to be a home run uh opportunity, a combination that uh has delivered fantastic results. We're very optimistic about doing the same with Malcolm and his team at Veritex.
Now, it looked like under the Biden administration unless a bank was failing, you really couldn't get in doing anything. Uh this seems like a fresh new page here. You got a very profitable bank in Veritex, profitable bank in Huntington Bank. No one, the regulators don't seem to mind that at all, do they?
Well, you know, there's a more constructive overall business tone not just in banking and and we are clearly benefiting from the constructive tone in our sector and and it's reflected in the approach uh that that this deal came together in four weeks, Jim. Gez, it's a record for us and we have done a an exhaustive due diligence.
We're very confident in our outcome and we've had huge success in integrating in the past. Well, when I look at your expansion plans, it seems like that you've uh really I mean, you could say, "Well, hold it. Did they skip over places?" I would say, "No, you're in all the places that seem to be pro business,
right?" Yes. On purpose. And Texas is one of those that's that's best in the world in terms of pro business. We love what we're doing in North and South Carolina as well. So, we're in three of the fastest growing five states in the US now in a major way. So, uh, tell me about when you looked at the quarter, you felt like you could pre-announce it.
To me, it looked very solid, which leads me to believe that all the worries that we might have had about a slowdown in the regions that you're in just aren't didn't h didn't happen. I mean, business is strong in the country. It's a great quarter for us. Uh, we we we were having such a good quarter, we took about a 4 cent one time just to move some securities off the balance sheet and we still met consensus.
So we had a uh if you do an ad back we had a 16% beat. It was a sensational quarter. Credit was outstanding. 20 basis points of charge offs. Revenue expanded. Nim nim uh net interest income by 3%. NIM expanded. Capital grew. It literally hit on all cylinders for us. So you think we're done with that securities repositioning?
I saw that and I said, "Oh boy, I don't know. I don't don't want to see that to be the start of something like that." Well, we've only done one in the last since interest rates started moving up four years ago. It happened to be this quarter and in part it was a reflection of just some level of uncertainty about where longer rates are going to go with the the discussions around tariffs.
So, we thought thought it was a good de-risisking move at the right time and we have plenty of capacity to do it. We don't anticipate Okay. When I read through your financials, I said to myself, I I would not necessarily call the Fed chief uh too late pal. I mean, to me, he's looking at some parts of the economy that are very very strong.
Doesn't want to make the wrong move. I know that in a not a less political time. I think people would just say he's being pruned. Well, we saw this in the 19 early 1980s when uh there was a double dip. uh the the Fed increased rates significantly, but infl the inflation they they they provided relief too quickly.
Inflation returned and then rates really shot up to the roof. That was when prime was 21%. So I I think there's a prudence in this action, but we now have the the big beautiful bill passed, so we know what taxes are. If we get when we get through the tariff uh uncertainties, which looks like it's going to be another month or two, I think the underlying economy is in good shape.
And we're seeing that in the credit quality and I think the industry will have good credit quality this quarter. Well, you know, you you mentioned the big beautiful bill. I got to ask you're a banker and you're really smart about these things. I deal with a lot of people who are not that all that who are rich but are not all that sophisticated about the different changes that were made in the big beautiful bill.
There are elements of depreciation and elements of R&D credits that could unleash I trillions of dollars in spending and no one believes me. Oh, I I'm on your page. I think the accelerated depreciation will be a huge boost to the onshore manufacturing and other expansions that companies are looking to do in the US.
And so, we're the fourth or fifth largest equipment financer in the country. We love this provision. We think it's going to be very significant to economic activity in 26 and beyond. Now, are your bankers making that call? Are you telling people, look, this could be a great opportunity to expand? We are.
That's it's reflected in the investment with Veritex. We grew loans 8% on average uh over this past year. So, as we said last August on the show with you, you know, we think we can be part of the economic equation, part of the solution set to to grow the economy, and we're certainly doing more than our part.
We're peer leading. Now, do you want to be uh in all states or do you just want to be in the states that you know are uh very very uh that like to grow and don't like to punish business? We're we're targeting higher growth pro business states and that's why the entry into North and South Carolina several years ago.
It's gone hugely uh successful and the growth we have in Texas that that we've built over time really like and understand that market and we are thrilled to have Malcolm and team join us from Veritex. Texans like to do business with Texans and we have one of the great businessmen in Texas joining us.
What I'm not hearing from you is that look I'm really concerned about the tariffs. the tariffs are putting a lot of people on hold. It could really cause a lot of inflation. I'm this is a frightening time. I'm not hearing any of that stuff from you. Well, I believe there is an impact with the uncertainties of tariffs.
Having said that, the core economy is really performing well and it's showing up in terms of credit quality. It's showing up in terms of for us loan growth and uh so we're optimistic about it. you you still have very low unemployment levels by historic standards. So this feels like the once we get a few of the issues settled and they're getting resolved.
The last one big one I think is tariffs uh the economy is going to going to rebound a bit and uh and and we're going to see economic growth at at important levels. I totally share that view. I just really think that people have to recognize as long as there's unemployment that is low that's the secret of our great country and you got it dead right.
I think your plans are terrific. Steve Stiner, he's the president CEO of chairman of Huntington Bankers. We've championed this thing right through the 23 crisis, the whole thing. It's just been a great stock to be in. Mad Money's back to those prices. .
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