HBANP — Huntington Bancshares Incorporated

Summary of Huntington Bancshares Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Earnings Per Share (EPS): Reported at $0.25; adjusted EPS (excluding acquisition-related expenses) was $0.37, up 9% year-over-year.
• Pre-Provision Net Revenue (PPNR): Increased by 36% on an adjusted basis.
• Tangible Book Value Growth: Increased by 9%.
• Return on Tangible Common Equity (ROTCE): Consistently at 16%-17% over the last five quarters; raised target to 18%-19% for 2027.
• Net Interest Income: Increased by 18.7% sequentially and 33% year-over-year.
• Net Interest Margin (NIM): Reported at 3.24%, up 9 basis points from the prior quarter.
• Loan Growth: Excluding acquisitions, loan balances increased by 1.5% or $2.2 billion.
• Deposit Growth: Core deposits increased by $3.8 billion or 2.3% quarter-over-quarter.

2. Strategic Updates and Business Highlights:

• Huntington is focused on its differentiated super-regional bank model, emphasizing organic growth and strategic partnerships (e.g., Cadence, Veritex).
• Successful integration of acquisitions, with Veritex fully integrated and Cadence on track for systems migration in June.
• Strong performance in fee-generating services, particularly in capital markets, payments, and wealth management.
• Continued investment in technology and AI to enhance operational efficiency and customer service.
• Share repurchase program expanded to $3 billion, with $550 million planned for 2026.

3. Forward Guidance and Outlook:

• 2026 guidance for NIM adjusted to the high 3.20s, down from mid-3.30s due to increased cash balances and competitive deposit pricing.
• EPS target for 2027 set at $1.90 to $1.93, with expectations for continued organic growth and realization of synergies from recent acquisitions.
• Anticipated Q4 efficiency ratio in the mid- to low 54% range, improved from previous guidance of less than 55%.

4. Bad News, Challenges, or Points of Concern:

• Economic growth outlook is cautious, with potential impacts from inflation and geopolitical tensions affecting consumer behavior, particularly among lower-income households.
• Competitive pressures in deposit pricing are noted, with modest spread compression on loans.
• The bank is strategically reducing exposure to commercial real estate, particularly in construction, as a precautionary measure.
• The macroeconomic environment remains uncertain, and while current performance is strong, management is prepared to adjust expenses if needed.

5. Notable Q&A Insights:

• Management emphasized a disciplined approach to expense management, with flexibility to adjust based on revenue conditions.
• Concerns about talent retention post-acquisition were addressed, with management expressing confidence in their ability to retain key personnel and attract new talent.
• The potential for Basel III regulatory changes could provide additional capital flexibility, with expectations for a reduction in risk-weighted assets (RWA) benefiting capital ratios.
• The management team remains focused on organic growth and integration of recent acquisitions, with no immediate plans for large-scale M&A, emphasizing the importance of executing their current strategy effectively.

Overall, Huntington Bancshares reported a strong quarter with solid financial metrics, strategic growth initiatives, and a cautious yet optimistic outlook for the remainder of 2026 and beyond.