Summary of Huntington Bancshares (HBAN) Q4 2025 Earnings Call

1Key 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%.

2Strategic 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.

3Forward 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.

4Bad 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.

5Notable 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.