The $187 billion-asset bank on Wednesday laid out some details behind
"The ability at this stage — when other banks may be doing cost programs or reductions, or have a limited appetite for risk-weighted asset growth for capital or other reasons — this is a window," said
"It's a bit of a contrarian play," added Steinour, who was speaking at the Goldman Sachs U.S. Financial Services Conference in New York City. "With strong capital, excellent liquidity, the capabilities of the team, the credit performance, this is our time to move. We intend to do it throughout 2024, as well."
In October, on a conference call to discuss third-quarter earnings, Steinour said that Huntington's noninterest expenses, which totaled $1.1 billion for the three months ending Sept. 30, would increase by 4%-5% in the fourth quarter. He also said that the spending growth would carry over into 2024.
Huntington's Carolinas expansion will be led by commercial banking, according to Steinour. The Columbus, Ohio-based bank plans to offer middle-market corporate specialty banking capabilities, along with treasury management and capital markets services, he said.
Banking teams in the Carolinas will be located in five regions: Charlotte; Raleigh-Durham; the Triad region of Greensboro, Winston-Salem and High Point; Upstate South Carolina; and Coastal South Carolina.
Huntington has already hired many of the bankers it needs to staff its teams, Steinour said, though he stopped short of disclosing precisely how many individuals it has recruited.
"We were able to be opportunistic in identifying teams of experienced bankers who know these markets well," Steinour said. "I'm very enthusiastic about the teams who have recently joined the bank."
While several Huntington specialty lending units, including
Huntington's plans for a medical asset-based lending unit should dovetail with an existing health care specialty banking group, Steinour said. The new effort offers the opportunity to "extend the menu" with existing relationships and bring new ones into the company, he said: "It's a natural fit, hand in glove."
The entry into Native American financial services is an outgrowth of Huntington's June 2021 acquisition of TCF Financial, which expanded the bank's footprint into Minnesota and Colorado, according to Steinour.
"We've got a half dozen very experienced bankers [with] great reputations, and we're prepared to invest," he said.
Huntington joins a small group of companies, including
"Done well, it's a really good business, and it serves an underserved community. It's in line with our purpose," Steinour said.
Though he provided no details, Chief Financial Officer Zach Wasserman said the moves announced Wednesday will begin to have a positive impact on Huntington's results in the second half of 2024 and into 2025.
"These are really exciting," Wasserman said. "Each in and of themselves is additive and helpful. Cumulatively, they'll be powerful. … We're seeing the highest-caliber talent come to us. That's what enables the fast payback."
