HBANM — Huntington Bancshares Incorporated

Summary of Huntington Bancshares 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% from prior quarter), with year-over-year growth at 9.2%.
• Deposit Growth: Average deposits increased by $1.4 billion (1% from prior quarter).
• Net Interest Income (NII): Grew by approximately $40 million (2.7% sequential growth), representing almost 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 executing its growth strategy effectively, with strong performance across all business segments.
• The upcoming acquisition of Veritex is expected to enhance growth in Texas, positioning Huntington as the 14th largest depository in the state.
• The integration of Veritex is anticipated to yield cost synergies, improving the efficiency ratio and return on tangible common equity (ROTCE).
• The bank is focused on organic growth, particularly in Texas and the Carolinas, with plans to expand its branch network and commercial banking activities.

3. Forward Guidance and Outlook

• Loan Growth: Expected to reach approximately 8% for the full year; inclusive of Veritex, ADB growth projected at 9% to 9.5%.
• Deposit Growth: Anticipated at approximately 5.5% for the full year; inclusive of Veritex, expected at 6.5% to 7%.
• NII Guidance: Increased to 10% to 11% for the full year, up from 8% to 9%, driven by better loan growth and NIM.
• Operating Leverage: Projected to improve by over 2.5 percentage points for the full year, significantly higher than initial guidance.

4. Bad News, Challenges, or Points of Concern

• Market Competition: The competitive landscape in Texas and the Carolinas remains intense, with ongoing pressure on pricing and margins.
• Credit Quality Risks: Although current metrics are strong, management acknowledged potential industry-wide credit quality issues, particularly in light of recent fraud headlines affecting other banks.
• Economic Uncertainty: Ongoing economic and policy uncertainty could pose risks to future performance, although management remains optimistic about credit quality and loan growth.

5. Notable Q&A Insights

• Loan Growth Outlook: Management expressed confidence in maintaining strong loan growth, particularly in core areas like regional banking and consumer auto lending.
• Credit Quality Management: The bank's conservative risk appetite and proactive portfolio management are seen as key factors in maintaining strong credit quality.
• Deposit Pricing Strategy: The bank has successfully managed deposit costs and volumes, with a beta of 40% observed during recent rate cuts, indicating effective pricing strategies.
• M&A Strategy: While the focus remains on organic growth and the integration of Veritex, management acknowledged the potential for future acquisitions but emphasized current priorities.

Overall, Huntington Bancshares reported a strong quarter with robust growth metrics and positive forward guidance, while remaining vigilant about competitive pressures and credit quality risks.