Summary of Huntington Bancshares Q1 2026 Earnings Call

1Key Financial Results and Metrics:

Earnings Per Share (EPS): Reported at $0.25; adjusted EPS was $0.37, reflecting a 9% year-over-year growth.

Pre-Provision Net Revenue (PPNR): Increased by 36% on an adjusted basis.

Tangible Book Value: Grew by 9%.

Return on Tangible Common Equity (ROTCE): Consistently at 16%-17%; 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 quarter-over-quarter.

Loan Growth: Excluding acquisitions, increased by 1.5%.

Deposit Growth: Core deposits rose by 2.3% quarter-over-quarter.

2Strategic Updates and Business Highlights:

Partnerships and Acquisitions: Successful integration of Veritex and Cadence, with the latter's systems migration scheduled for June. The Janney and TM Capital acquisitions have also been integrated, contributing to record capital markets performance.

Core Business Performance: Strong organic growth across various segments, particularly in capital markets, payments, and wealth management.

Liquidity Position: Maintained a strong liquidity profile, with available contingent liquidity at approximately 173% of uninsured deposits.

AI Investments: Ongoing enterprise-wide AI program aimed at improving efficiency and productivity across multiple business areas.

3Forward Guidance and Outlook:

2026 Guidance: Expected to be at the low end of the net interest income growth range due to a more cautious economic outlook.

NIM Forecast: Adjusted to trend into the high 3.20s, down from mid-3.30s, primarily due to increased cash balances at the Federal Reserve.

EPS Projection for 2027: Expected to be between $1.90 and $1.93, supported by organic growth and realization of cost and revenue synergies.

Efficiency Ratio: Anticipated to improve to the mid- to low 54% level by Q4 2026.

4Bad News, Challenges, or Points of Concern:

Economic Environment: Acknowledged a more uncertain macroeconomic backdrop, with potential impacts on consumer spending, particularly among lower-income households.

Loan Growth Adjustments: Revised expectations for loan growth to the midpoint of the range, with a focus on optimizing the balance sheet and managing commercial real estate exposure.

Competitive Pressures: Facing rational but competitive deposit pricing, which may impact margins.

Market Valuation: Frustration expressed over the stock's underperformance despite strong fundamentals and growth outlook.

5Notable Q&A Insights:

Balance Sheet Optimization: Management is actively tuning the balance sheet in response to economic conditions, particularly in commercial real estate.

Share Buyback Authorization: A new $3 billion buyback program was approved, reflecting confidence in capital generation and potential Basel III benefits.

Retention of Talent: Strong retention rates reported post-acquisition, with ongoing efforts to attract new talent to support growth.

Revenue Synergies: Progress on revenue synergies from acquisitions is encouraging, particularly in capital markets and payments, with expectations for continued strong performance in fee income. Overall, Huntington Bancshares reported a strong first quarter, with solid financial performance and strategic initiatives in place, while also navigating economic uncertainties and competitive pressures.