HBANZ — Huntington Bancshares Incorporated

Summary of Huntington Bancshares Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Adjusted PPNR: Increased 12% quarter-over-quarter.
• Net Interest Income (NII): Rose 8.5% to $2.1 billion.
• Value-Added Fee Revenues: Grew 15%, with organic growth of approximately 30%.
• Average Loans: Increased by $15 billion (8.6% sequentially), with normalized organic growth of $2.2 billion (1.2%).
• Average Deposits: Increased by $18.8 billion (9.2% sequentially), with normalized organic growth of $4 billion (1.8%).
• Return on Tangible Common Equity (ROTCE): Adjusted ROTCE was 16.7% on a trailing four-quarter basis, with a target of 18%-19% by 2027.
• Tangible Book Value Growth: Continued growth in line with high single-digit to low double-digit targets.

2. Strategic Updates and Business Highlights

• Successful completion of the Cadence systems conversion within 235 days, with deposit growth during the conversion weekend.
• Focus on organic growth and integration of new markets, particularly in Texas and the South, which are viewed as key growth areas.
• Strong performance in value-added services such as payments, wealth management, and capital markets, contributing to diversified revenue streams.
• Recognition for company culture and customer satisfaction through multiple awards.

3. Forward Guidance and Outlook

• NII Guidance: Expected to be at the low end or slightly below the previously set range due to competitive deposit costs and market conditions.
• Loan Growth: Anticipated to remain strong, particularly in the second half of the year, with a focus on maintaining a healthy loan-to-deposit ratio.
• Expense Management: On track to achieve $435 million in annualized run-rate cost synergies by Q4 2026.
• 2027 EPS Target: Projected EPS of $1.90-$1.93, driven by strong organic growth, fee income, and cost synergies.

4. Bad News, Challenges, or Points of Concern

• NII Pressure: Guidance indicates potential downward revision due to increased deposit costs and competitive pressures.
• Loan Growth Moderation: Some headwinds in auto lending and commercial real estate, with a focus on maintaining return profiles.
• Market Competition: Competitive landscape for deposits remains intense, which could impact margins.
• Elevated Non-Performing Assets (NPAs): NPAs remain high due to government-guaranteed loans and select commercial credit downgrades.

5. Notable Q&A Insights

• Market Sentiment: Analysts expressed concern over the stock's performance, particularly regarding the NII outlook.
• Management Confidence: Executives emphasized their ability to dynamically manage the business and optimize growth despite challenges.
• Fee Income Growth: Strong confidence in continued fee income growth driven by investments in core businesses and successful integration of Cadence.
• Texas Market Potential: Management highlighted significant growth opportunities in Texas, where they have rapidly expanded their presence and capabilities.

Overall, Huntington Bancshares demonstrated strong financial performance in Q2 2026, with a focus on strategic growth and integration. However, challenges related to deposit costs and competitive pressures remain, impacting the outlook for net interest income. The company is positioned for continued growth, particularly in expanding markets, while maintaining a disciplined approach to expense management and credit quality.