HBAN — Huntington Bancshares Incorporated

Summary of Huntington Bancshares (HBAN) Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Earnings Per Share (EPS): Reported at 41¢; adjusted EPS at 40¢, up 18% year-over-year.
• Revenue Growth: Increased by 14% year-over-year; adjusted Pre-Provision Net Revenue (PPNR) up 16%.
• Loan Growth: Average loan balances grew by $2.8 billion (2% QoQ), with a year-over-year growth rate of 9.2%.
• Deposit Growth: Average deposits increased by $1.4 billion (1% QoQ).
• Net Interest Income: Grew by approximately $40 million (2.7% QoQ), representing nearly 12% year-over-year growth.
• Net Interest Margin (NIM): Reported at 3.13%, up two basis points from the prior quarter.
• Credit Quality: Net charge-offs at 22 basis points; allowance for credit losses at 1.86%.

2. Strategic Updates and Business Highlights

• Huntington is focused on executing its growth strategy, emphasizing organic growth and the integration of Veritex, which is expected to enhance its Texas market presence.
• The bank anticipates becoming the 14th largest depository in Texas post-acquisition, with significant revenue and cost synergies expected.
• Strong performance in fee-based businesses, particularly in payments, wealth management, and capital markets, which collectively grew 13% year-over-year.
• The bank is committed to disciplined capital allocation and risk management, maintaining a moderate to low-risk appetite.

3. Forward Guidance and Outlook

• Loan Growth: Expected to reach 8% for the full year on a standalone basis, with inclusive growth from Veritex projected at 9% to 9.5%.
• Deposit Growth: Anticipated at approximately 5.5% standalone, and 6.5% to 7% including Veritex.
• Net Interest Income Guidance: Increased to 10% to 11% for the full year, up from 8% to 9%.
• Operating Leverage: Expected improvement of over 2.5 percentage points in efficiency ratio for the full year.
• Return on Tangible Common Equity (ROTCE): Adjusted ROTCE above 17%, with a medium-term target of 16% to 17% by 2027.

4. Bad News, Challenges, or Points of Concern

• Despite strong performance, there are concerns regarding potential credit quality issues in the broader industry, though Huntington's management remains optimistic about their own credit portfolio.
• The competitive landscape in Texas and the Carolinas is described as intense, with ongoing pressures from both national and local banks.
• The bank has acknowledged the potential for economic and policy uncertainties impacting future performance.

5. Notable Q&A Insights

• Management expressed confidence in loan growth, citing strong pipelines and core business performance, particularly in regional banking and consumer auto lending.
• Questions regarding credit quality were addressed, with management highlighting their rigorous risk management practices and a stable outlook for credit metrics.
• The bank's approach to deposit pricing was noted as sophisticated, with a focus on maintaining primary banking relationships to drive deposit growth.
• Discussions on the Veritex acquisition revealed excitement about the growth opportunities it presents, while also emphasizing that organic growth remains the primary focus.

Overall, Huntington Bancshares reported a strong quarter with significant growth across various metrics, while also preparing for the integration of Veritex to enhance its market position. The management remains cautiously optimistic about the future, despite recognizing competitive and economic challenges.