Core Insights - The M&A outlook for 2026 remains strong despite rising geopolitical and macroeconomic challenges, with 72.6% of advisors expecting an increase in deal flow [5] - Geopolitical factors have overtaken inflation as the primary concern impacting business operations, marking a significant shift in advisor sentiment [5] M&A Market Trends - A 6.4% year-over-year decline in expected M&A deal flow is noted, yet optimism persists among investment bankers [5] - Interest rate cuts in various regions have kept the private equity M&A outlook elevated, with 45.3% of bankers expecting an increase in sponsor dealmaking [5] - Market volatility and economic uncertainty are seen as the top factors delaying deal closings, with 56.6% of advisors highlighting this concern [5] Deal Characteristics and Valuations - Advisors anticipate a rise in global expansion (+7.8% YOY) and vertical integration (+5.1% YOY) deals, while expectations for recapitalizations (-12% YOY) and capital raises (-10.7% YOY) have decreased [5] - 66% of investment bankers indicate that recurring revenue will be the most important characteristic for acquirers in 2026 [5] - 25.5% of advisors expect M&A transaction multiples to moderately rise, while 66% foresee little to no change in multiples [5] Seller Considerations - Realistic deal valuations are identified as crucial for sellers to achieve successful M&A transactions, aligning with 48.1% of advisors who believe excessive valuation expectations may hinder deal closings [5]

Core Viewpoint - Huntington Bancshares Incorporated (HBAN) is experiencing underperformance in its stock relative to the broader market, despite showing some positive operational metrics in its recent earnings report [2][4]. Company Overview - Huntington Bancshares is an Ohio-based regional bank holding company that operates primarily through The Huntington National Bank, offering a variety of financial services including consumer, commercial, and mortgage banking, as well as wealth management and insurance [1]. Stock Performance - Over the past 52 weeks, HBAN stock has declined marginally, while the S&P 500 Index has increased by 15%. In the last six months, HBAN shares have risen by 2.5%, compared to a 9.2% return for the S&P 500 [2]. - HBAN has also underperformed the Financial Select Sector SPDR Fund (XLF), which returned 3.3% over the past year, although it outperformed the ETF's slight decline over the last six months [3]. Recent Earnings Report - On January 22, shares of Huntington Bancshares fell nearly 6% following the release of Q4 FY2025 earnings. The company reported an adjusted EPS of $0.37, which was slightly lower than the previous quarter but higher than the same period last year, indicating improving profitability [4]. - Net interest income increased by $197 million, or 14% year-over-year, reflecting strong balance-sheet growth. Noninterest income also rose by 4% annually to $582 million, despite some sequential softness [4]. Lending Activity - Lending activity remained strong, with average loans and leases increasing by 14% to $146.6 billion, demonstrating sustained demand across key segments [5]. - The quarter marked the successful completion of the Veritex integration, and management has reaffirmed its expansion strategy through a pending partnership with Cadence Bank, positioning Huntington for accelerated growth despite short-term market volatility [5]. Future Earnings Expectations - For the current fiscal year ending in December 2026, analysts project HBAN's EPS to grow by 11.4% year-over-year to $1.66. The company has a promising earnings surprise history, having beaten or matched bottom-line estimates in three of the past four quarters, although it missed in the previous quarter [6].

Index Changes - S&P Dow Jones Indices will implement changes to the S&P MidCap 400 and S&P SmallCap 600 indices effective January 30 and February 2, 2026 [1][3] - TTM Technologies (TTMI) will be added to the S&P MidCap 400, replacing Civitas Resources (CIVI), which is being acquired by SM Energy [1][3] - Amneal Pharmaceuticals (AMRX) will be added to the S&P SmallCap 600, replacing TTM Technologies [1][3] - Dutch Bros (BROS), Advanced Energy Industries (AEIS), and American Healthcare REIT (AHR) will be added to the S&P MidCap 400 on February 2, 2026, with Comerica (CMA), Cadence Bank (CADE), and PotlatchDeltic (PCH) being removed [1][3] - Apellis Pharmaceuticals (APLS) and LegalZoom.com (LZ) will be added to the S&P SmallCap 600, replacing Advanced Energy Industries and Elme Communities (ELME), respectively [1][3] Acquisition Details - SM Energy is acquiring Civitas Resources, and the deal is expected to close soon, with SM Energy remaining in the S&P SmallCap 600 post-merger [3] - Rayonier is acquiring PotlatchDeltic, and will remain in the S&P MidCap 400 after the merger [3] - Fifth Third Bancorp is acquiring Comerica, which will also remain in the S&P MidCap 400 post-acquisition [3] - Huntington Bancshares is acquiring Cadence Bank, with Cadence being removed from the S&P MidCap 400 [3] - Elme Communities is undergoing liquidation activities, making it no longer suitable for the S&P SmallCap 600 [3]

Core Viewpoint - Huntington Bancshares reported disappointing Q4 2025 results, missing revenue and EPS estimates, which led to a 6.02% decline in stock price, raising concerns about future profitability due to higher expenses and credit provisions [1][4]. Financial Performance - The bank's revenue grew by 12% in Q4, but EPS decreased, falling short of analysts' expectations [4]. - The criticized asset ratio increased from 3.79% to 4.23% quarter over quarter, indicating rising credit concerns [4]. - Management anticipates a 10% rise in expenses for 2026 due to pending acquisitions, negatively impacting market sentiment [4]. Growth Prospects - Despite recent challenges, management projects positive growth in key areas: net interest income, loans, deposits, and fee revenue are expected to rise by 11.5%, 11.5%, 8.5%, and 14.5% at the midpoint, respectively [5]. - Full synergies from the Vertex acquisition are expected by Q2 and from the Cadence acquisition by Q4, suggesting potential for successful expansion into the Southern U.S. market [5]. Market Context - Trading volume for Huntington Bancshares reached 86.2 million shares, significantly above the three-month average of 28.4 million shares, indicating heightened investor interest or concern [2]. - The broader market saw the S&P 500 and Nasdaq Composite increase by 0.54% and 0.91%, respectively, while other regional banks like Fifth Third Bancorp and KeyCorp also faced declines [3].

Core Viewpoint - Huntington Bancshares Incorporated (HBAN) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 37 cents, missing the Zacks Consensus Estimate of 39 cents, while the prior-year quarter EPS was 34 cents [1][9] Financial Performance - The company’s net income attributable to common shareholders (GAAP basis) was $519 million for the quarter, down from $530 million in the prior-year quarter [2] - For the full year 2025, EPS was $1.39, missing the Zacks Consensus Estimate of $1.49, but showing improvement from $1.22 in 2024 [3] - Total quarterly revenues increased 11.3% year over year to $2.19 billion, although it missed the Zacks Consensus Estimate of $2.20 billion [4] - Full-year revenues aggregated to $8.23 billion, up 10.7% year over year, beating the Zacks Consensus Estimate of $8.21 billion [4] Income and Expenses - Net interest income (NII) on a fully taxable-equivalent (FTE) basis was $1.61 billion, up 14.2% from the prior-year quarter, driven by a rise in average earning assets and net interest margin (NIM), which increased by 12 basis points to 3.15% [5] - Non-interest income rose 4.1% year over year to $582 million, while non-interest expenses surged 20.5% year over year to $1.42 billion, primarily due to increases in almost all cost components [5][9] - The efficiency ratio was 64.2%, up from 58.6% in the year-ago quarter, indicating a decline in profitability [6] Loans and Deposits - As of December 31, 2025, average loans and leases increased 7.8% sequentially to $146.6 billion, and average total deposits rose 5.1% sequentially to $173.2 billion [7] Credit Quality - Net charge-offs were $89 million, down from $97 million in the prior-year quarter, while the allowance for credit losses increased 12.1% to $2.74 billion [8][10] - Total non-performing assets were $945 million as of December 31, 2025, up 14.9% from the prior-year quarter [8] Capital Ratios - The common equity tier 1 risk-based capital ratio was 10.4%, down from 10.5% in the year-ago period, while the regulatory Tier 1 risk-based capital ratio increased to 12% from 11.9% [11] Recent Developments - Huntington Bancshares secured regulatory and shareholder approvals for a $7.4 billion all-stock acquisition of Cadence Bank, expected to close on February 1, 2026, which will expand its presence across 21 states [12] - The company completed a $1.9 billion all-stock merger with Veritex Holdings Inc. in October 2025, enhancing its footprint in key Texas markets [13] Strategic Outlook - The company’s inorganic expansion efforts are anticipated to support revenue growth in the near term, with a focus on strengthening commercial banking capabilities and expanding in key growth markets [14]

Financial Data and Key Metrics Changes - In Q4 2025, earnings per common share was $0.30, and on an adjusted basis, EPS was $0.37, reflecting a 9% year-over-year increase [17] - Revenue growth for 2025 was 11%, with adjusted EPS growth at 16% and 290 basis points of positive operating leverage [7][17] - Average loans grew 14.4% year-over-year, with organic loan growth of $10.1 billion, exceeding the $9.5 billion added through the Veritex partnership [17][19] - Average deposits increased 5.1% quarter-over-quarter and 8.6% year-over-year, with core deposits growing $5.5 billion year-over-year [19][20] Business Line Data and Key Metrics Changes - Consumer banking saw a 4% year-over-year increase in primary bank relationships, while business banking grew by 7% [8] - New initiatives contributed $1.8 billion to loan growth, with significant contributions from Texas and North and South Carolina expansions [17][18] - Fee income from payments grew 5%, with commercial payment revenues up 8% year-over-year, and wealth management grew 10% [22][24] Market Data and Key Metrics Changes - The company expanded its consumer and regional banking presence to 21 states, focusing on fast-growing markets [4][5] - The partnership with Veritex and Cadence is expected to enhance market growth and customer share in Texas and other new markets [15] Company Strategy and Development Direction - The company aims to become the leading people-first, customer-centered bank, leveraging a differentiated operating model [4][5] - Strategic investments in branch build-out, new commercial verticals, and fintech solutions are designed to enhance long-term growth [9][10] - The focus remains on organic growth, customer relationship deepening, and expanding wallet share while maintaining a moderate to low-risk profile [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth targets, emphasizing the effectiveness of their operating model and investments [34] - The outlook for 2026 includes expectations for net interest income growth between 10% and 13%, supported by loan and deposit growth [29][30] - Management anticipates continued strong performance in fee revenues, projecting growth between 13% and 16% [30] Other Important Information - The company achieved a 19% year-over-year increase in tangible book value while returning 40% of earnings through dividends [27] - Credit quality remains strong, with net charge-offs at 24 basis points and a criticized asset ratio of 4.2% [28] Q&A Session Summary Question: Clarification on expense trajectory and cost savings - Management indicated that underlying expense growth is expected in the mid-single digits, with a focus on positive operating leverage [41][42] Question: Partnership approach and revenue synergies - The partnership model has allowed for quicker decision-making and greater certainty for employees, enhancing the potential for cost and revenue synergies [46][47] Question: Expected first quarter expenses - Management refrained from providing specific quarterly guidance but emphasized the importance of positive operating leverage [52][53] Question: Revenue-producing initiatives in expense guidance - Very little of the revenue synergies are included in the current guidance, with more details expected in future updates [55][56] Question: Credit guidance and seasoning of loans - Management confirmed that while seasoning is a factor, the overall credit performance has been exceptional, with expectations for 2026 in the lower end of the guidance range [86]

Financial Data and Key Metrics Changes - In Q4 2025, earnings per common share was $0.30, with an adjusted EPS of $0.37, reflecting a 9% year-over-year increase [17] - Revenue growth for 2025 was 11%, with adjusted EPS growth of 16% and 290 basis points of positive operating leverage [6][24] - Average loans grew 14.4% year-over-year, with organic loan growth of $10.1 billion, exceeding the $9.5 billion added through the Veritex partnership [17][19] - Average deposits increased 5.1% quarter-over-quarter and 8.6% year-over-year, with core deposits growing $5.5 billion year-over-year [19][20] Business Line Data and Key Metrics Changes - Consumer banking saw a 4% year-over-year increase in primary bank relationships, while business banking grew by 7% [7] - New initiatives contributed $1.8 billion to loan growth, with significant contributions from Texas and North and South Carolina expansions [17] - Fee income businesses grew, with payments up 5%, commercial payment revenues up 8%, and wealth management growing 10% [21][22] Market Data and Key Metrics Changes - The company expanded its consumer and regional banking presence to 21 states, focusing on fast-growing markets [4] - The partnership with Veritex and Cadence is expected to enhance market growth and customer share in Texas and other new markets [15] Company Strategy and Development Direction - The company aims to become the leading people-first, customer-centered bank, leveraging a differentiated operating model [4] - Strategic investments in branch build-out, new commercial verticals, and fintech solutions are designed to enhance long-term growth [8] - The focus remains on organic growth, customer relationship deepening, and expanding wallet share while maintaining a moderate to low-risk profile [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth targets, emphasizing the effectiveness of the operating model and recent partnerships [32][34] - The outlook for 2026 includes expectations for net interest income growth of 10% to 13%, supported by loan and deposit growth [27] - Credit quality remains strong, with net charge-offs expected between 25 and 35 basis points, and a stable non-performing asset ratio [26][30] Other Important Information - The company plans to initiate programmatic share repurchases and maintain a strong dividend yield [25] - Investments in technology, including AI, are expected to continue driving growth and efficiency [79] Q&A Session Summary Question: Clarification on expense trajectory and cost savings - Management indicated that underlying expense growth is expected in the mid-single digits, with cost synergies from Veritex and Cadence expected to be realized in 2026 [40][41] Question: Revenue synergies from partnerships - Management highlighted that the partnership model has allowed for quicker decision-making and greater certainty, which is expected to enhance both cost and revenue synergies [44][46] Question: Guidance on first quarter expenses - Management refrained from providing specific quarterly guidance but emphasized the importance of positive operating leverage and continued investment back into the business [52] Question: Credit guidance and deposit beta - Management confirmed that the credit guidance reflects historical performance and that deposit beta is expected to remain in the high 30s to 40% range [86][87] Question: Technology investment details - Management stated that technology investments are focused on customer-facing capabilities and digital marketing, with significant growth expected in these areas [89]

Financial Data and Key Metrics Changes - In Q4 2025, earnings per common share was $0.30, with an adjusted EPS of $0.37, reflecting a 9% year-over-year increase [16][20] - Average loans grew 14.4% year-over-year, with organic loan growth of $10.1 billion, exceeding the $9.5 billion added through the Veritex partnership [16][18] - Average deposits increased 5.1% quarter-over-quarter and 8.6% year-over-year, with core deposits growing $5.5 billion year-over-year [18][19] - Net interest income grew by $86 million, or 5.6% sequentially, representing over 14% growth year-over-year [20] - Adjusted return on tangible common equity (ROTCE) increased by 40 basis points, with tangible book value growing 19% year-over-year [25][26] Business Line Data and Key Metrics Changes - Consumer banking saw a 4% year-over-year increase in primary bank relationships, while business banking grew by 7% [6] - Fee income from payments grew 5%, with commercial payment revenues up 8% year-over-year [21] - Wealth management grew 10%, and capital markets delivered its second strongest revenue quarter, trailing only Q4 2024 [21][22] Market Data and Key Metrics Changes - The company expanded its consumer and regional banking presence to 21 states, focusing on fast-growing markets [4] - The partnerships with Veritex and Cadence are expected to enhance market growth and customer share in Texas and other new markets [14] Company Strategy and Development Direction - The company aims to become the leading people-first, customer-centered bank, leveraging a differentiated operating model [3][4] - Strategic investments in branch expansion, commercial verticals, and fintech solutions are designed to enhance long-term growth [7][8] - The focus remains on organic growth, customer relationship deepening, and maintaining a moderate to low-risk profile [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong growth driven by organic initiatives and recent partnerships [32] - The outlook for 2026 includes expectations for net interest income growth of 10% to 13% and fee revenue growth of 13% to 16% [27][29] - Management anticipates achieving cost synergies from Veritex by Q2 and from Cadence by Q4, contributing to overall profitability [31] Other Important Information - The company plans to initiate programmatic share repurchases and maintain a strong dividend yield [25] - Credit quality remains stable, with net charge-offs at 24 basis points and a criticized asset ratio of 4.2% [26] Q&A Session Summary Question: Clarification on expense trajectory and cost savings - Management indicated that underlying expense growth is expected in the mid-single digits, with positive operating leverage anticipated [40][41] Question: Partnership approach and revenue synergies - The partnership model has allowed for quicker decision-making and greater certainty for employees, enhancing the potential for cost and revenue synergies [42][45] Question: Guidance on first quarter expenses - Management refrained from providing specific quarterly guidance but emphasized the importance of positive operating leverage [48] Question: Revenue-producing initiatives and fee guidance - Very little of the revenue synergies are included in the current guidance, with more details expected in future updates [50][51] Question: Investment in technology and AI - Investments in technology, including AI, are expected to continue growing, supporting customer acquisition and operational efficiency [68]

分组1 - Huntington Bancshares reported quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.39 per share, but showing an increase from $0.34 per share a year ago, resulting in an earnings surprise of -4.86% [1] - The company posted revenues of $2.19 billion for the quarter ended December 2025, which was below the Zacks Consensus Estimate by 0.19%, but an increase from $1.97 billion year-over-year [2] - Over the last four quarters, Huntington Bancshares has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] 分组2 - The stock has gained approximately 8.2% since the beginning of the year, outperforming the S&P 500's gain of 0.4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $2.17 billion, and for the current fiscal year, it is $1.69 on revenues of $9.04 billion [7] - The Zacks Industry Rank for Banks - Midwest is currently in the bottom 31% of over 250 Zacks industries, indicating potential challenges for the sector [8]

2025 Fourth Quarter Earnings Review January 22, 2026 Welcome. The Huntington National Bank is Member FDIC. ®, Huntington® and Huntington. are federally registered service marks of Huntington Bancshares Incorporated. ©2026 Huntington Bancshares Incorporated. Abundant Green R: 126 G: 207 B: 28 Dark Teal R: 3 G: 79 B: 84 Pastel Teal R: 184 G: 239 B: 228 Pastel Magenta R: 248 G: 224 B: 229 White R: 255 G: 255 B: 255 Prosperous Sage R: 0 G: 45 B: 42 Primary Palette Off-White R: 245 G: 245 B: 245 Second Palette H ...