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Huntington (HBAN) Launches a Fund Finance Banking Team
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Huntington Bancshares Incorporated (HBAN - Free Report) expanded its sponsor finance business within the Commercial Banking segment with the addition of a fund finance banking team.
The new team will provide strategically important financing directly at the fund level and help expand coverage across the sponsor ecosystem. This will provide sponsors with a broader range of financing options and, thereby, significantly boost Huntington's commercial capabilities by leveraging Huntington’s banking platform.
"We are committed to enhancing our sponsor coverage and positioning Huntington for success as we respond to the growth of institutional ownership," remarked Tizu Menelik, executive managing director of Huntington Specialty and Corporate Banking.
Scott Kleinman, president of Huntington Commercial Bank, noted, "The addition of this team better positions Huntington to serve the full range of needs across commercial clients and is yet another example of our targeted strategic investments to expand our commercial expertise and capabilities."
HBAN’s expansion of the subscription finance business will offer greater fee opportunities across Middle Market, Corporate and Capstone businesses, per management. In first-quarter 2023, non-interest income moved up 3% year over year to $512 million. The rise mainly stemmed from the higher card and payment processing income, and capital market fees, partially offset by lower service charges on deposit accounts, mortgage banking and leasing revenues.
Markedly, in June 2022, Huntington completed the acquisition of Capstone Partners, a top-tier middle-market investment bank and advisory firm. The acquisition has enhanced the complementary capabilities of the capital market business and is expected to drive fee income in the ongoing year.
Fee income aside, HBAN’s top line is likely to be supported by higher net interest income (NII). The bank is one of the top 20 banks in the United States by deposits and it is focused on acquiring the industry's best deposit franchise. This has supported HBAN to be active on the lending front and strengthen its balance sheet.
Hence, with strong loan growth and expectations of interest rates remaining high in the near term, Huntington’s NII and the yield on interest-earning assets are expected to witness decent growth. The company is projecting 2023 NII (excluding Paycheck Protection Program or PPP and Purchase Accounting Accretion) growth of 6-9%.
In the past 30 days, shares of HBAN have gained 14.5% compared with the industry’s rise of 12.6%.
Last week, BOK Financial Corporation’s (BOKF - Free Report) division, Bank of Texas, set foot in the San Antonio market. It offers full-service, relationship-focused financial services in the region. This marks BOKF’s foray into the markets outside Dallas, Fort Worth and Houston, and further expands its footprint in Texas.
Bank of Texas currently has 39 total locations. BOKF’s debut in San Antonio underlines its efforts to expand in the Texas region, and will benefit from the dynamic and fast-growing market.
Recently, Citizens Financial Group, Inc. (CFG - Free Report) announced that it expanded its private banking business with the addition of approximately 50 senior private bankers and related support staff in Boston, Florida, New York and San Francisco.
This underlines CFG’s focus on private banking growth strategy and is in line with its efforts to accelerate its strategy to build out Wealth Management and scale Business Banking, increase deposits and expand in targeted growth markets.
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Huntington (HBAN) Launches a Fund Finance Banking Team
Huntington Bancshares Incorporated (HBAN - Free Report) expanded its sponsor finance business within the Commercial Banking segment with the addition of a fund finance banking team.
The new team will provide strategically important financing directly at the fund level and help expand coverage across the sponsor ecosystem. This will provide sponsors with a broader range of financing options and, thereby, significantly boost Huntington's commercial capabilities by leveraging Huntington’s banking platform.
"We are committed to enhancing our sponsor coverage and positioning Huntington for success as we respond to the growth of institutional ownership," remarked Tizu Menelik, executive managing director of Huntington Specialty and Corporate Banking.
Scott Kleinman, president of Huntington Commercial Bank, noted, "The addition of this team better positions Huntington to serve the full range of needs across commercial clients and is yet another example of our targeted strategic investments to expand our commercial expertise and capabilities."
HBAN’s expansion of the subscription finance business will offer greater fee opportunities across Middle Market, Corporate and Capstone businesses, per management. In first-quarter 2023, non-interest income moved up 3% year over year to $512 million. The rise mainly stemmed from the higher card and payment processing income, and capital market fees, partially offset by lower service charges on deposit accounts, mortgage banking and leasing revenues.
Markedly, in June 2022, Huntington completed the acquisition of Capstone Partners, a top-tier middle-market investment bank and advisory firm. The acquisition has enhanced the complementary capabilities of the capital market business and is expected to drive fee income in the ongoing year.
Fee income aside, HBAN’s top line is likely to be supported by higher net interest income (NII). The bank is one of the top 20 banks in the United States by deposits and it is focused on acquiring the industry's best deposit franchise. This has supported HBAN to be active on the lending front and strengthen its balance sheet.
Hence, with strong loan growth and expectations of interest rates remaining high in the near term, Huntington’s NII and the yield on interest-earning assets are expected to witness decent growth. The company is projecting 2023 NII (excluding Paycheck Protection Program or PPP and Purchase Accounting Accretion) growth of 6-9%.
In the past 30 days, shares of HBAN have gained 14.5% compared with the industry’s rise of 12.6%.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Expansion Moves by Other Banks
Last week, BOK Financial Corporation’s (BOKF - Free Report) division, Bank of Texas, set foot in the San Antonio market. It offers full-service, relationship-focused financial services in the region. This marks BOKF’s foray into the markets outside Dallas, Fort Worth and Houston, and further expands its footprint in Texas.
Bank of Texas currently has 39 total locations. BOKF’s debut in San Antonio underlines its efforts to expand in the Texas region, and will benefit from the dynamic and fast-growing market.
Recently, Citizens Financial Group, Inc. (CFG - Free Report) announced that it expanded its private banking business with the addition of approximately 50 senior private bankers and related support staff in Boston, Florida, New York and San Francisco.
This underlines CFG’s focus on private banking growth strategy and is in line with its efforts to accelerate its strategy to build out Wealth Management and scale Business Banking, increase deposits and expand in targeted growth markets.