Raising Our Fair Value Estimate for Huntington to $15.40 Due to Strong Commercial Loan Growth

Huntington is a large US regional bank with a focus on both retail and commercial customers. It’s primarily focused on the Midwest region, with Ohio and Michigan making up 80% of its deposit base. Its commercial loan focus is on loans for purchasing equipment, financing working capital, and commercial real estate. The bank’s loan portfolio is around 20% vehicle financing, where it generates indirect auto and RV/marine lending by providing floor planning loans to dealers nationwide. Its auto financing exposure has an 80% overlap with its core branch footprint and has a very good efficiency ratio of 10%.