Summary of Huntington Bancshares Q3 2025 Earnings Call

1Key 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%.

2Strategic 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.

3Forward 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.

4Bad 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.

5Notable 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.