HBANP — Huntington Bancshares Incorporated

Summary of Huntington Bancshares (HBANP) 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) rose 16%.
• Loan Growth: Average loan balances grew by $2.8 billion (2% quarter-over-quarter), with year-over-year growth at 9.2%.
• Deposit Growth: Average deposits increased by $1.4 billion (0.8% quarter-over-quarter).
• Net Interest Income: Grew by $40 million (2.7% sequentially) and 12% year-over-year.
• Net Interest Margin (NIM): Reported at 3.13%, up 2 basis points from the previous 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 a growth strategy with strong performance across all fronts, particularly in Texas, where the acquisition of Veritex is expected to enhance growth significantly.
• The bank is positioned to become the 14th largest depository in Texas post-acquisition, with a focus on leveraging Veritex's network for consumer and small business offerings.
• The company emphasized disciplined capital allocation and robust risk management, maintaining a moderate to low-risk appetite while driving performance.
• Notable growth in fee-based businesses, particularly in payments (10% growth), wealth management (12% growth), and capital markets (21% growth).

3. Forward Guidance and Outlook

• Huntington raised its full-year guidance for revenue and earnings growth, expecting loan growth to hit approximately 8% and deposits to grow around 5.5% on a standalone basis.
• For 2026, the bank anticipates continued growth in loans and deposits, with NIM expected to rise by at least 10 basis points.
• The bank plans to initiate share repurchases systematically, estimating around $50 million per quarter through 2026.

4. Bad News, Challenges, or Points of Concern

• The bank acknowledged economic and policy uncertainty, which could impact future performance.
• There are concerns regarding potential credit quality issues in the broader industry, although Huntington's management expressed confidence in their risk management practices.
• Competitive pressures in the lending market, particularly in expansion regions like Texas and the Carolinas, are noted, but management believes their established relationships and strategies will mitigate these risks.

5. Notable Q&A Insights

• Management expressed confidence in loan growth momentum, with expectations for continued strength in core business areas and geographic expansions.
• Credit quality remains strong, with no significant concerns reported, although management is vigilant about potential industry-wide issues.
• The bank's deposit pricing strategy has been effective, with a beta of 40% observed during recent rate cuts, and they expect to maintain a competitive edge in deposit gathering.
• Management reiterated a focus on organic growth rather than pursuing additional M&A activity post-Veritex acquisition, emphasizing their commitment to leveraging existing capabilities.

Overall, Huntington Bancshares reported a strong quarter with robust growth metrics and a positive outlook, while remaining cautious about external economic factors and competitive pressures.