Summary of Huntington Bancshares 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 full year, with a strong performance in Q4.

Loan Growth: Average loans increased by 14.4% year-over-year, with organic loan growth of $10.1 billion, exceeding the $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 5.6% sequentially and 14% year-over-year, with a net interest margin of 3.15%.

Operating Expenses: Core expenses increased by just $7 million sequentially, reflecting disciplined cost management.

2Strategic Updates and Business Highlights

Huntington is focused on becoming a leading customer-centered bank, expanding its presence to 21 states.

Significant investments in branch expansions in North and South Carolina and Texas, along with new commercial verticals.

Successful integration of Veritex, with systems integration completed efficiently, and Cadence integration expected to follow suit.

Strong growth in primary bank relationships: 4% in consumer banking and 7% in business banking year-over-year.

Continued emphasis on enhancing digital capabilities and fintech solutions to improve customer experience and drive fee revenue growth.

3Forward Guidance and Outlook

For 2026, Huntington expects:

NII Growth: 10% to 13% on a stand-alone basis.

Loan Growth: 11% to 12%, with deposits expected to grow at a similar pace.

Fee Revenue Growth: Anticipated between 13% to 16%, bolstered by contributions from new capital markets teams and the Cadence partnership.

Operating Expenses: Expected to grow by 10% to 11%, with a target of 150 to 200 basis points of operating leverage.

Net Charge-Offs: Projected to be in the range of 25 to 35 basis points.

4Bad News, Challenges, or Points of Concern

Credit Quality: While net charge-offs are low at 24 basis points, the criticized asset ratio rose to 4.2%, primarily due to Veritex's commercial real estate loans.

Competitive Environment: The deposit environment remains competitive, which may impact future deposit growth and pricing strategies.

Expense Management: Some analysts expressed concerns about the clarity of expense guidance and the potential for higher-than-expected expenses due to ongoing investments and acquisitions.

5Notable Q&A Insights

Management emphasized the importance of a partnership approach in integrating Veritex and Cadence, which has facilitated quicker decision-making and synergy realization.

Analysts sought clarification on expense trajectories, with management indicating a focus on maintaining positive operating leverage while continuing to invest in growth.

The potential for future M&A was discussed, with management stating that any future deals would need to be strategic and value-adding, with a focus on organic growth as the primary objective.

There was a consensus on maintaining a disciplined approach to managing costs while investing in technology and digital capabilities to enhance customer acquisition and service delivery. Overall, Huntington Bancshares reported strong financial results for Q4 2025, with a positive outlook for 2026 driven by strategic investments and successful integrations, despite some concerns regarding credit quality and competitive pressures.