HBAN — Huntington Bancshares Incorporated

Summary of Huntington Bancshares (HBAN) Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Earnings Per Share (EPS): Reported at $0.30; adjusted EPS was $0.37, reflecting a 9% year-over-year increase.
• Revenue Growth: 11% for the year, with adjusted EPS growth of 16%.
• Loan Growth: Average loans increased by 14.4% year-over-year, with organic growth of $10.1 billion, exceeding $9.5 billion from the Veritex partnership.
• Deposit Growth: Average deposits rose 5.1% quarter-over-quarter and 8.6% year-over-year.
• Net Interest Income (NII): Grew by $86 million (5.6% sequentially) and 14% year-over-year, with a net interest margin of 3.15%.
• Operating Expenses: Core operating expenses increased by only $7 million sequentially, reflecting disciplined cost management.
• Credit Quality: Net charge-offs were at 24 basis points, with a criticized asset ratio of 4.2%.

2. Strategic Updates and Business Highlights

• Huntington is focused on becoming a leading customer-centered bank, expanding its presence to 21 states.
• Significant investments were made in branch expansions in North and South Carolina and Texas, alongside new commercial verticals and fintech partnerships.
• The integration of Veritex was completed efficiently, with Cadence expected to close shortly, enhancing market reach and capabilities.
• Strong performance in fee-based services, particularly in payments and wealth management, with expectations of continued growth.

3. Forward Guidance and Outlook

• For 2026, Huntington expects:
  • NII Growth: 10% to 13%, with loan growth of 11% to 12% and deposit growth of 8% to 9%.
  • Fee Revenue Growth: Anticipated between 13% to 16%, bolstered by new partnerships and existing business lines.
  • Core Expenses: Expected to grow by 10% to 11%, with a target efficiency ratio of around 55%.
  • Credit Quality: Projected net charge-offs to be between 25 to 35 basis points.
  • Continued focus on organic growth while integrating new partnerships.

4. Bad News, Challenges, or Points of Concern

• Credit Quality Risks: While currently stable, the criticized asset ratio increased due to Veritex's commercial real estate loans, which could pose future risks.
• Competitive Pressures: The deposit environment remains competitive, necessitating careful management of pricing and volume growth.
• Expense Management: While expenses are controlled, the integration of Cadence may introduce complexities and potential cost increases.
• Market Conditions: Economic uncertainties and potential rate cuts could impact loan growth and margins.

5. Notable Q&A Insights

• Management emphasized the importance of their partnership model with Veritex and Cadence, which has facilitated smoother integrations and quicker realization of synergies.
• There was a focus on maintaining a disciplined approach to expense growth while investing in technology and digital capabilities.
• Questions about future M&A indicated that while they are open to strategic opportunities, the primary focus remains on organic growth and successful integration of current partnerships.
• Management expressed confidence in achieving their long-term financial targets, including a pro forma EPS of $2 by 2027, despite current expense and integration challenges.

Overall, Huntington Bancshares reported strong financial performance in Q4 2025, with a positive outlook for 2026 driven by strategic investments and successful integrations, while remaining vigilant about credit quality and competitive pressures.