Huntington Bancshares

Methodology

Huntington Bancshares' regional banking operations across the Midwest generate cyclical earnings sensitive to interest rates, credit quality, and regional economic conditions. The company's commercial and consumer lending franchise provides diversified revenue. This calculation works best using normalized assumptions about mid-cycle credit losses and net interest margins—peak cycle conditions overstate sustainable profitability.

Methodology

Huntington typically shows moderate PEG ratios for a regional bank, though growth rates are cyclical and can mislead. The company's sensitivity to Midwest economic health and interest rate positioning means earnings fluctuate with regional conditions. For regional banks, valuation based on price-to-tangible-book relative to return on tangible equity provides more insight than earnings-based PEG ratios that vary with credit cycles.

Methodology

Huntington pays a meaningful dividend that represents an important component of total returns for regional bank investors. The company's dividend is subject to regulatory capital requirements and credit cycle positioning. PEGY is relevant for income-focused bank investors, as dividends provide stability during slow-growth periods, though dividend sustainability depends on maintaining asset quality through economic downturns.