NEWS RELEASE July 14, 2025 Huntington Investor Relations: Eric Wasserstrom, 312-762-2155, eric.wasserstrom@huntington.com Huntington Media: Tracy Pesho, 216-276-3301, tracy.pesho@huntington.com Veritex Investor Relations and Media: LaVonda Renfro, 972-349-6129, lrenfro@veritexbank.com Exhibit 99.1 Huntington Bancshares Incorporated Announces Acquisition of Veritex and Provides Preliminary 2025 Second Quarter Results Veritex acquisition accelerates Huntington's organic growth initiatives in high-growth Texas ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) Maryland 1-34073 31-0724920 (State or other jurisdiction of incorporation or organization) For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Huntington Bancshare ...

Financial Performance - Net interest income for Q1 2025 was $1,426 million, an increase of 11% compared to Q1 2024[9] - Net income attributable to Huntington for Q1 2025 was $527 million, a 26% increase compared to Q1 2024[9] - Total revenue for Q1 2025 was $1,935 million, slightly down from $1,968 million in Q4 2024, reflecting a decrease of 1.7%[23] - Noninterest income decreased by 12% to $494 million compared to Q4 2024, but increased by 6% compared to Q1 2024[9] - Net interest income for the quarter was $1,441 million, an increase from $1,409 million in the previous quarter[19] Asset and Loan Growth - Average total assets increased by 2% to $205,087 million compared to Q4 2024, and by 8% compared to Q1 2024[9] - Total assets at the end of the period were $209,596 million, reflecting a 3% increase from December 31, 2024[13] - Total loans and leases increased to $132,505 million in Q1 2025, up from $130,042 million in Q4 2024, representing a growth of 1.9%[15] - Total loans and leases rose by 2% to $130,862 million, up from $128,158 million in the prior quarter[17] - Commercial loans accounted for 57% of total loans and leases, with commercial and industrial loans at $58,948 million, a 3.8% increase from $56,809 million in Q4 2024[15] Deposits and Funding - Total deposits reached $165,337 million in Q1 2025, an increase of 1.1% from $162,448 million in Q4 2024[16] - Demand deposits (noninterest-bearing) rose to $30,217 million, accounting for 18% of total deposits, compared to $29,345 million in Q4 2024[16] - Money market deposits increased to $61,608 million, maintaining a 37% share of total deposits, up from $60,730 million in Q4 2024[16] - Total interest-bearing deposits grew by 2% to $132,654 million, up from $129,823 million in the prior quarter[17] Credit Quality and Losses - Provision for credit losses increased by 7% to $115 million compared to Q4 2024 and Q1 2024[9] - The allowance for loan and lease losses increased to $2.263 billion at the end of Q1 2025, up from $2.244 billion at the end of Q4 2024[27] - Total net charge-offs for Q1 2025 were $86 million, a decrease from $97 million in Q4 2024[28] - Nonperforming assets (NPAs) increased to 281 million in Q1 2025 from 273 million in Q4 2024[27] - The net charge-offs as a percentage of average loans and leases was 0.26% in Q1 2025, down from 0.30% in Q4 2024[28] Capital Ratios and Equity - The common equity tier 1 risk-based capital ratio was 10.6% as of March 31, 2025, compared to 10.5% at the end of 2024[9] - Total risk-based capital increased to $20,720 million as of March 31, 2025, up from $20,565 million at December 31, 2024[33] - Total Huntington shareholders' equity increased to $20,434 million in Q1 2025 from $19,322 million in Q1 2024, a growth of 5.8%[37] - Tangible common equity reached $12,817 million in Q1 2025, compared to $11,264 million in Q1 2024, marking a 13.8% increase[37] Operational Efficiency - The efficiency ratio improved to 58.9% in Q1 2025, down from 63.7% in Q1 2024[9] - The average yield on loans and leases was 5.87% in Q1 2025, slightly down from 5.89% in Q4 2024[21] - The total cost of deposits decreased to 2.03% in Q1 2025 from 2.16% in Q4 2024, a decline of 0.13 percentage points[21] Employee and Branch Metrics - The number of employees averaged 20,092 in Q1 2025, up from 19,719 in Q1 2024, reflecting a workforce growth of 1.9%[37] - The number of domestic full-service branches decreased to 968 in Q1 2025 from 969 in Q1 2024, showing a slight contraction[37] - ATM count decreased to 1,560 in Q1 2025 from 1,606 in Q1 2024, indicating a reduction in physical banking infrastructure[37]

Branch Operations and Market Presence - As of December 31, 2024, the company operates 978 full-service branches across multiple states, including Ohio, Colorado, and Florida[19] - The company holds a 43% market share in Columbus, OH, with deposits totaling $44,814 million, ranking first in the area[37] Banking Segments and Services - The Consumer & Regional Banking segment offers a wide array of financial products, including deposits, lending, and investment management, aimed at both consumer and business customers[21] - The Commercial Banking segment serves mid-market to large corporates, providing a comprehensive set of product offerings, including treasury management and capital markets[28] Customer Experience and Innovation - The company emphasizes a "Fair Play" banking philosophy, which includes features like the $50 Safety Zone® and 24-Hour Grace® to enhance customer experience[35] - The company is actively investing in technology and innovation to remain competitive against FinTechs and other non-traditional banking competitors[39] - The company continues to develop and launch new products and services to drive differentiated value for customers[39] Regulatory Environment and Capital Requirements - The regulatory environment is highly stringent, with oversight from multiple federal and state regulators, including the Federal Reserve and FDIC[40] - The company is categorized as a Category IV banking organization, subject to the least restrictive requirements for firms with over $100 billion in total consolidated assets[42] - Huntington's CET1 risk-based capital ratio was 10.5% as of December 31, 2024, exceeding the minimum requirement of 4.5%[71] - The total risk-based capital ratio for Huntington was 14.3% as of December 31, 2024, surpassing the well-capitalized minimum of 10.0%[71] - Huntington is subject to a stress capital buffer (SCB) of 2.5% effective October 1, 2024[69] - The Bank's Tier 1 leverage ratio was 8.9% as of December 31, 2024, exceeding the minimum requirement of 4.0%[71] - Huntington is required to maintain a minimum outstanding eligible long-term debt amount of no less than 6% of total risk-weighted assets if the proposed long-term debt requirements are adopted[62] - The Federal Reserve has not yet revised the well-capitalized standard for BHCs to reflect the higher capital requirements imposed under the U.S. Basel III capital rules[67] - Huntington's capital ratios as of December 31, 2024, would exceed the revised well-capitalized standard if applied by the Federal Reserve[67] - The company has phased in 75% of the cumulative CECL deferral as of December 31, 2024, with full compliance beginning January 1, 2025[66] - Huntington's capital planning is subject to supervisory review under the Federal Reserve's CCAR process, requiring an annual capital plan submission[77] - The U.S. banking agencies proposed a rule in July 2023 aimed at significantly increasing capital requirements for large banks, including Huntington[75] - Huntington's indicative SCB requirement for its 2024 Capital Plan is set at a minimum of 2.5%, down from the previous 3.2%[80] - The Federal Reserve expects BHCs like Huntington to maintain capital levels above minimum ratios during economic stress[78] - Huntington submitted its 2024 Capital Plan for review on April 5, 2024, with the Federal Reserve's feedback received on June 26, 2024[80] - Capital distributions by Huntington are subject to compliance with Federal Reserve capital rules, allowing for certain distributions without prior approval[81] - The Bank must maintain capital buffer requirements to avoid restrictions on capital distributions, including dividends[84] - Huntington's ability to pay dividends is limited by federal banking law and the need for sufficient net income[83] Community Engagement and Commitment - The Bank received the highest possible overall CRA rating of "Outstanding" in its most recent examination[112] - Huntington has committed $40 billion over five years toward its Community Plan to strengthen small businesses and foster opportunity[126] - As of September 30, 2024, Huntington has exceeded its commitment by funding $153 million in loans through its Lift Local Business® program[126] - Huntington committed to providing $24 billion in affordable housing financing and consumer lending, having reached $18.2 billion of this commitment by October 31, 2024[127] - The company expanded its Small Business lending programs with a commitment of $10 billion, achieving $8.2 billion by October 31, 2024[127] - Huntington exceeded its $6.5 billion commitment in community development loans and investments by funding $7.8 billion through October 31, 2024[127] - A $16 billion commitment to diverse borrowers and communities has reached $14.7 billion by October 31, 2024, aimed at advancing systemic change[127] Employee Engagement and Culture - The average full-time equivalent colleagues at Huntington during 2024 was 19,932, reflecting the company's focus on culture and performance[130] - In 2024, 85% of colleagues responded favorably regarding trust, placing Huntington in the top quartile for Culture and Trust among peers[131] - Huntington colleagues provided approximately 35,000 volunteer hours to nearly 1,400 organizations in 2024, emphasizing community engagement[135] - The company completed nearly 800,000 training hours in 2024, supporting colleague development and performance[136] Financial Risks and Economic Factors - Huntington's allowance for credit losses (ACL) was $2.4 billion at December 31, 2024, reflecting management's estimate of expected losses in the loan and lease portfolio[146] - Rising interest rates could negatively impact net interest income and the value of loans and securities, affecting the company's financial condition[151] - Inflation may negatively impact profitability and stock price due to increased fixed costs and decreased consumer purchasing power[158] - Competition in the financial services sector is intensifying, with larger competitors having more resources, potentially affecting customer retention and deposit levels[159] - Liquidity is crucial for meeting cash flow needs, and reliance on depositor confidence is essential for maintaining liquidity[160] - The availability of deposits is influenced by regulatory changes and competitors' interest rates, which could impact the bank's liquidity[161] - Access to capital markets is vital for meeting cash flow requirements; disruptions could hinder corporate expansion and operational funding[164] - A reduction in credit ratings could adversely affect access to capital and increase funding costs, impacting growth and profitability[167] - Global economic instability and geopolitical matters may adversely affect financial conditions and operational results[168] Operational and Cybersecurity Risks - Operational risks exist due to reliance on internal and third-party systems, which could disrupt business and impact financial condition[169] - Cybersecurity risks pose significant threats, including potential data breaches that could harm business reputation and lead to legal exposure[173] - Continuous investment in system updates is necessary to mitigate operational risks, but such updates entail significant costs and potential disruptions[172] - Cybersecurity risks for banking organizations have significantly increased due to the proliferation of new technologies, including AI, and the sophistication of cyber threat actors[175] - The company faces significant operational risks, including fraud, unauthorized transactions, and system failures, which could lead to financial loss and litigation[178] - The reliance on third-party service providers introduces risks that could adversely affect the ability to deliver products and services[185] - AI is used in business operations, exposing the company to legal, regulatory, and operational risks, with potential impacts on competitive position and financial results[191] Compliance and Regulatory Challenges - The company operates in a highly regulated industry, facing supervision from various federal and state regulators, which may increase costs and limit business opportunities[194] - Compliance with laws and regulations can be costly, and failure to comply could result in fines, penalties, and restrictions on business activities, adversely affecting financial results[196] - The company anticipates increased regulatory scrutiny and potential investigations related to consumer practices, which could lead to significant revenue loss and increased compliance costs[195] - The Federal Reserve administers the CCAR process, which assesses the company's capital adequacy and may impose higher capital requirements, impacting dividend payments and stock repurchases[212] - The company must maintain a Common Equity Tier 1 Capital Buffer (CCB) of 2.5% and may face additional capital requirements based on its size and risk profile[213] - Proposed changes to capital and liquidity requirements could increase expenses and negatively affect financial results, including the ability to pay dividends[214] - The company is subject to heightened regulatory focus on cybersecurity and data privacy, which may require changes to business practices and incur additional costs[204] Reputation and Strategic Risks - The loss of key personnel could adversely affect the implementation of the company's long-term business strategy and operational success[210] - The competitive landscape includes intense competition from both traditional financial institutions and non-bank entities, necessitating substantial investments in technology and product adaptation[208] - Legislative and regulatory actions may materially impact the company's financial condition and operational efficiency, particularly during financial crises[199] - Reputation risk could significantly harm the company's business, competitive position, and prospects due to various factors including misconduct and security breaches[215] Cybersecurity Governance - Cybersecurity is a core enterprise risk identified for oversight by the Board through annual ERM assessments[217] - The company's cybersecurity practices are aligned with the National Institute of Standards and Technology framework and other industry standards[218] - Ongoing assessments and testing of cybersecurity processes are conducted through audits and third-party evaluations to ensure effectiveness[218]

Financial Performance - Net interest income for Q4 2024 was $1,409 million, a 3% increase from Q3 2024 and a 6% increase from Q4 2023[10] - Noninterest income increased to $559 million in Q4 2024, up 7% from Q3 2024 and 38% from Q4 2023[10] - Net income attributable to Huntington for Q4 2024 was $530 million, representing a 3% increase from Q3 2024 and a 118% increase from Q4 2023[10] - The company reported a total revenue of $1,968 million for Q4 2024, up 4.3% from $1,887 million in Q3 2024[23] - The net income attributable to Huntington for 2024 was $1,940 million, a decrease of $11 million or 1% from 2023[44] Asset and Liability Management - Average total assets increased to $201,815 million in Q4 2024, a 2% increase from Q3 2024 and a 7% increase from Q4 2023[10] - Total assets at the end of Q4 2024 were $204,230 million, a 2% increase from Q3 2024 and an 8% increase from the previous year[10] - Total liabilities were reported at $181.755 billion, a 7% increase from $169.200 billion in the previous year[17] - Total equity increased to $19,700 million, reflecting a 5% growth from $18,683 million in 2023[38] Credit Quality and Losses - Provision for credit losses was $107 million in Q4 2024, a slight increase from $106 million in Q3 2024 but a decrease from $126 million in Q4 2023[10] - The allowance for loan and lease losses at the end of December 2024 was $2,244 million, a decrease from $2,304 million in September 2024[27] - Net loan and lease charge-offs for the quarter ending December 2024 were $97 million, compared to $93 million in September 2024[28] - Nonaccrual loans and leases (NALs) totaled $783 million at the end of December 2024, an increase from $738 million in September 2024[29] - Total nonperforming assets (NPAs) rose to $822 million in December 2024, up from $784 million in September 2024[29] Capital Ratios - The common equity tier 1 risk-based capital ratio was 10.5% at the end of Q4 2024, up from 10.4% in Q3 2024 and 10.2% in Q4 2023[10] - Total risk-based capital increased to $20,565 million as of December 31, 2024, from $20,110 million in the previous quarter[32] - The common equity tier 1 capital was reported at $15,127 million as of December 31, 2024, compared to $14,803 million in the previous quarter[32] Loan and Deposit Growth - Net loans and leases rose by 7% to $127,798 million from $119,727 million year-over-year[13] - Total deposits grew by 7% to $162,448 million, up from $151,230 million in the previous year[16] - Total loans and leases reached $128.158 billion, marking a 3% increase from $121.229 billion in the previous year[17] - Demand deposits (noninterest-bearing) were $29,345 million, representing 18% of total deposits[16] Interest Income and Margin - Interest income for Q4 2024 was $2,510 million, a decrease of 1.8% from $2,555 million in Q3 2024[23] - The net interest margin for Q4 2024 was 3.03%, compared to 2.98% in Q3 2024 and 3.07% in Q4 2023[10] - The average yield on interest-earning deposits with banks was 4.92% in Q4 2024, down from 5.55% in Q3 2024, showing a decrease in returns on liquid assets[21] Dividends and Shareholder Returns - The company declared cash dividends of $0.155 per common share for Q4 2024, consistent with previous quarters[23] - Cash dividends declared per common share remained consistent at $0.155 for the fourth consecutive quarter[35] Employee and Branch Metrics - The number of domestic full-service branches increased to 978 as of December 31, 2024, compared to 975 on September 30, 2024[36] - The average number of employees was 20,045 in 2024, a slight increase from 20,043 in 2023[36]

Financial Performance - For Q3 2024, net income was $517 million, or $0.33 per diluted common share, down from $547 million, or $0.35 per diluted common share in Q3 2023, representing a decrease of 5%[21]. - Net income attributable to Huntington for the nine months ended September 30, 2024, was $1.41 billion, a decrease of $298 million, or 17%, compared to $1.71 billion for the same period in 2023[163]. - Net income for the nine months ended September 30, 2024, was $1,426 million, a decrease from $1,723 million in the same period of 2023, representing a decline of approximately 17.3%[197]. - Comprehensive income attributable to Huntington for Q3 2024 was $1,324 million, compared to a loss of $69 million in Q3 2023[194]. Income and Revenue - Total interest income for Q3 2024 increased to $2,555 million, up 10.5% from $2,313 million in Q3 2023[193]. - Net interest income for Q3 2024 was $1.4 billion, a decrease of $17 million, or 1%, compared to the same quarter last year, primarily due to a 22 basis point decrease in the net interest margin (NIM) to 2.98%[22]. - Noninterest income was $523 million, an increase of $14 million, or 3%, driven by higher capital markets and advisory fees, as well as wealth management revenue[24]. - Total noninterest income for Q3 2024 was $523 million, slightly up from $509 million in Q3 2023, reflecting a 2.8% increase[193]. Credit Losses and Provisions - The provision for credit losses increased by $7 million, or 7%, to $106 million in Q3 2024, with the allowance for credit losses (ACL) rising to $2.4 billion, or 1.93% of total loans and leases[23]. - Provision for credit losses for Q3 2024 was $106 million, compared to $99 million in Q3 2023, indicating a 7.1% increase[193]. - The total provision for credit losses for the first nine months of 2024 was $313 million, an increase of $37 million, or 13%, compared to the prior year[47]. - The Allowance for Credit Losses (ACL) at September 30, 2024, is estimated at $2.235 billion, reflecting management's assessment of lifetime credit losses from the loan and lease portfolio[186]. Assets and Liabilities - Total assets as of September 30, 2024, were $200.5 billion, an increase of $11.2 billion, or 6%, compared to December 31, 2023, primarily due to a $4.4 billion increase in loans and leases[25]. - Total liabilities increased to $179.9 billion, up $9.9 billion, or 6%, compared to December 31, 2023, mainly due to a $7.1 billion increase in total deposits[25]. - Average assets for Q3 2024 were $198.3 billion, an increase of $11.7 billion, or 6%, from Q3 2023, driven by a $4.2 billion, or 10%, increase in average total securities[37]. - Total deposits rose to $158.351 billion, compared to $151.230 billion at the end of 2023, indicating a growth in customer deposits[191]. Capital and Equity - The tangible common equity to tangible assets ratio improved to 6.4% as of September 30, 2024, compared to 6.1% at the end of 2023, reflecting an increase in tangible common equity from current earnings[26]. - Shareholders' equity increased to $20.6 billion at September 30, 2024, an increase of $1.3 billion compared to December 31, 2023, primarily driven by earnings and improvements in accumulated other comprehensive income[152]. - The consolidated CET1 risk-based capital ratio increased to 10.4% at September 30, 2024, compared to 10.2% at the end of the previous year[149]. - The total risk-weighted assets at the consolidated level were $142.5 billion at September 30, 2024, up from $138.7 billion at December 31, 2023[148]. Loans and Leases - Loans and leases totaled $126.4 billion as of September 30, 2024, representing a $4.4 billion, or 4%, increase from $122.0 billion at December 31, 2023[62]. - Average loans and leases increased by $3.7 billion, or 3%, in Q3 2024, with consumer loans growing by $2.1 billion, or 4%[37]. - The commercial loan segment accounted for 56% of the total loan and lease portfolio, with commercial and industrial loans at $53.6 billion[63]. - The residential mortgage segment grew to $24.1 billion, up from $23.7 billion, indicating a 1.6% increase[64]. Interest Rate and Risk Management - The company is primarily exposed to interest rate risk due to a wide array of financial products offered to customers[88]. - The NII at Risk analysis indicated that the balance sheet is asset sensitive, with a projected NII at Risk of 2.7% under a +200 basis point scenario as of September 30, 2024[94]. - The cumulative total deposit beta was 46% through the recent rising rate cycle from March 2022 to September 2024[91]. - The company utilizes various derivative instruments, including interest rate swaps and caps, to manage interest rate risk and minimize fluctuations in earnings[101]. Economic and Regulatory Environment - The Federal Reserve cut the federal funds rate by 50 basis points in September 2024, with the unemployment rate rising from 3.4% to 4.1%[29]. - The FDIC's new rule requires banks with over $50 billion in assets to submit full resolution plans every three years, effective October 1, 2024[31]. - The company continues to assess macroeconomic uncertainties, including risks in the commercial real estate sector and inflation levels, impacting the ACL estimates[78]. Dividends and Shareholder Returns - The quarterly common stock cash dividend declared on October 16, 2024, is $0.155 per share, with estimated cash demands of approximately $225 million per quarter[133]. - During the first nine months of 2024, the Bank paid common and preferred dividends totaling $1.8 billion and $34 million, respectively[135]. - Cash dividends declared for common shares were $0.155 per share, totaling $229 million for Q3 2024[195].

Financial Performance - For Q2 2024, net income was $474 million, or $0.30 per diluted common share, down from $559 million, or $0.35 per diluted common share in Q2 2023, representing a 15% decrease in net income [21]. - Net income attributable to Huntington for the first six months of 2024 was $893 million, a decrease of $268 million, or 23%, compared to $1,161 million in the same period of 2023 [167]. - Net income for the six months ended June 30, 2024, was $904 million, a decrease of 22.8% compared to $1,171 million for the same period in 2023 [201]. - Comprehensive income attributable to Huntington for the three months ended June 30, 2024, was $442 million, compared to $308 million for the same period in 2023, representing an increase of 43.5% [198]. Income and Expenses - Noninterest income was $491 million, a decrease of $4 million, or 1%, primarily due to a prior year favorable mark-to-market adjustment [24]. - Total noninterest expense for Q2 2024 was $1.1 billion, an increase of $67 million, or 6%, from Q2 2023 [55]. - The provision for credit losses increased to $100 million for the three months ended June 30, 2024, compared to $92 million for the same period in 2023, indicating a rise of 8.7% [197]. - The provision for credit losses for the first six months of 2024 was $207 million, an increase of $30 million, or 17%, compared to the prior year, reflecting increased charge-off activity [49]. Assets and Liabilities - Total assets as of June 30, 2024, were $196.3 billion, an increase of $6.9 billion, or 4%, compared to December 31, 2023 [25]. - Total liabilities increased to $176.7 billion, up $6.8 billion, or 4%, primarily driven by a $4.1 billion increase in long-term debt [25]. - Average assets for Q2 2024 were $194.6 billion, an increase of $3.8 billion, or 2%, from Q2 2023, driven by a $2.0 billion, or 2%, increase in average loans and leases [38]. - Total loans and leases as of June 30, 2024, amounted to $124.4 billion, a $2.4 billion, or 2%, increase from December 31, 2023 [66]. Capital and Equity - The CET1 risk-based capital ratio improved to 10.4% as of June 30, 2024, from 10.2% at December 31, 2023, due to current period earnings [26]. - Shareholders' equity totaled $19.5 billion at June 30, 2024, an increase of $162 million compared to December 31, 2023 [156]. - The total Allowance for Loan and Lease Losses (ALLL) was $2.304 billion as of June 30, 2024, compared to $2.255 billion at the end of 2023 [86]. Credit Quality - The provision for credit losses increased by $8 million, or 9%, to $100 million in Q2 2024, with the allowance for credit losses rising to $2.4 billion, or 1.95% of total loans and leases [23]. - Nonaccrual loans and leases (NALs) increased to $733 million, representing 0.59% of total loans and leases, compared to 0.55% at December 31, 2023 [77]. - Net charge-offs (NCOs) for Q2 2024 were $90 million, or 0.29% of average total loans and leases, an increase from $49 million, or 0.16%, in the same quarter last year [74]. Deposits and Funding - Total deposits increased to $154.4 billion at June 30, 2024, compared to $151.2 billion at December 31, 2023 [124]. - Average interest-bearing deposits rose by $13.0 billion, or 12%, while noninterest-bearing deposits decreased by $4.9 billion, or 14% [39]. - Core deposits totaled $147.5 billion, representing 96% of total deposits, an increase of $2.1 billion or 1% from $145.5 billion at December 31, 2023 [122]. Economic Environment and Strategy - The company aims to enhance its digital leadership and customer experience while maintaining a moderate-to-low risk appetite [27]. - The company continues to assess macroeconomic uncertainties, including risks in the commercial real estate environment and inflation levels [81]. - The economic environment remains highly uncertain, impacting the ability to predict credit losses accurately [192]. Investment and Securities - Total investment securities increased by $1.5 billion to $42.6 billion at June 30, 2024, driven by higher investments in U.S. Treasury securities [130]. - As of June 30, 2024, total available-for-sale securities amounted to $31,001 million, with gross unrealized losses of $3,639 million [209]. - The fair value of held-to-maturity securities as of June 30, 2024, was $12,730 million, with gross unrealized losses of $2,307 million [209].

Financial Performance - For Q1 2024, net income was $419 million, or $0.26 per diluted common share, down from $602 million, or $0.39 per diluted common share in Q1 2023, reflecting a 30% decrease [22]. - Total noninterest income for Q1 2024 was $467 million, a decrease of $45 million, or 9%, from the previous year, primarily due to a significant drop in other noninterest income [44]. - Comprehensive income attributable to Huntington for Q1 2024 was $216 million, down 77.2% from $945 million in Q1 2023 [182]. - Net income for the three months ended March 31, 2024, was $424 million, a decrease of 30% compared to $606 million in the same period of 2023 [184]. Income and Expenses - Net interest income decreased by $122 million, or 9%, to $1.3 billion in Q1 2024, primarily due to a 39 basis point decrease in the net interest margin (NIM) to 3.01% [24]. - Noninterest expense for Q1 2024 was $1.1 billion, an increase of $51 million, or 5%, from Q1 2023 [46]. - The provision for income taxes in Q1 2024 was $86 million, down from $144 million in Q1 2023, with an effective tax rate of 16.8% compared to 19.2% in the prior year [47]. - Total noninterest income for Q1 2024 was $467 million, a decrease of 8.8% from $512 million in Q1 2023 [181]. Credit Losses and Provisions - Provision for credit losses increased by $22 million, or 26%, to $107 million in Q1 2024, with the allowance for credit losses (ACL) rising to $2.4 billion, or 1.97% of total loans and leases [25]. - The provision for credit losses increased to $107 million in Q1 2024 from $85 million in Q1 2023, reflecting a rise of 25.9% [184]. - Net charge-offs (NCOs) for Q1 2024 were $92 million, or 0.30% of average total loans and leases, an increase from $57 million, or 0.19%, in Q1 2023 [76]. - The allowance for loan and lease losses (ACL) was $2.280 billion, up from $2.255 billion at the end of 2023, indicating a slight increase in provisions for credit losses [179]. Assets and Liabilities - Total assets increased by $4.2 billion, or 2%, to $193.5 billion as of March 31, 2024, driven by a $2.5 billion increase in interest-earning deposits [27]. - Total liabilities also rose by $4.2 billion, or 2%, to $174.1 billion, primarily due to a $2.5 billion increase in long-term debt [27]. - Average assets for Q1 2024 increased by $5.4 billion, or 3%, to $190.3 billion, driven by a $3.4 billion, or 54%, increase in average interest-earning deposits with banks [39]. - Total deposits increased to $153.225 billion at March 31, 2024, up from $151.230 billion at December 31, 2023, representing a growth of 1.3% [109]. Capital and Equity - CET1 risk-based capital for the consolidated entity was $14.283 billion, with a CET1 risk-based capital ratio of 10.2% as of March 31, 2024 [133]. - Total risk-based capital for the consolidated entity was $19.713 billion, with a total risk-based capital ratio of 14.1% [133]. - As of March 31, 2024, shareholders' equity totaled $19.3 billion, a decrease of $31 million compared to December 31, 2023, primarily due to changes in accumulated other comprehensive income from interest rate fluctuations [139]. - The company reported a total shareholders' equity of $19.373 billion, slightly down from $19.398 billion at the end of 2023 [179]. Economic Outlook - The consensus economic outlook anticipates a soft landing in the economy in late 2024 to early 2025, with inflation expectations rising [30]. - The unemployment rate is projected to peak at 4.1% in 2025, with GDP forecasted to be 2.0% by Q4 2025 [67]. - The unemployment rate is projected to rise to 7.2% by the end of 2024, which is about 3.2% higher than baseline projections [173]. - The company anticipates four 25 basis points cuts in the federal funds rate by the end of 2024, with further cuts expected in 2025 and 2026 [67]. Deposits and Funding - Core deposits increased by $1.8 billion, or 1%, to $147.3 billion, representing 96% of total deposits [107]. - Non-core deposits were $6.0 billion, or 4% of total deposits, at March 31, 2024, compared to $5.8 billion at December 31, 2023 [108]. - Total available-for-sale securities amounted to $30,294 million, with a fair value of $26,801 million, indicating unrealized losses of $3,597 million [191]. - The total investment securities pledged to secure various liabilities was $36.2 billion as of March 31, 2024, up from $35.1 billion at December 31, 2023 [200]. Operational Highlights - The average number of employees decreased by 479, or 2%, to 19,719 compared to the previous year [46]. - The company aims to drive sustainable long-term revenue growth and enhance customer experience through digital leadership and disciplined capital management [31]. - The company does not expect to utilize the share repurchase program through 2024, focusing instead on funding loan and lease growth [141]. - The company employs derivative instruments such as interest rate swaps and caps to manage interest rate risk [91].

Branch Operations and Market Position - As of December 31, 2023, the company operates 999 full-service branches across multiple states, primarily in Ohio, Colorado, Illinois, Indiana, Kentucky, Michigan, Minnesota, Pennsylvania, West Virginia, and Wisconsin [18]. - The company is the 1 SBA lender in the nation by loan volume as of September 30, 2023 [25]. - The company holds a 40% market share in Columbus, OH, with deposits amounting to $41,638 million as of June 30, 2023 [36]. Organizational Structure and Segments - The organizational realignment in Q2 2023 consolidated several segments into two main segments: Consumer & Regional Banking and Commercial Banking [20]. - The Consumer & Regional Banking segment offers a wide array of financial products, including deposits, lending, and investment management, emphasizing a "Fair Play" banking philosophy [21]. - The Commercial Banking segment provides services to mid-market and large corporates, leveraging internal partnerships for wealth management, trust, and payments [28]. Technology and Innovation - The company continues to invest in technology and innovation to remain competitive against FinTechs and other financial service providers [38]. - The company aims to develop and launch new products and services through an active corporate development program focused on technology-driven partnerships [38]. Capital and Regulatory Compliance - Huntington's CET1 risk-based capital ratio as of December 31, 2023, is 10.25%, exceeding the minimum requirement of 4.50% [66]. - The total risk-based capital ratio for Huntington is 14.17%, significantly above the minimum requirement of 8.00% [66]. - Huntington is subject to a stress capital buffer (SCB) of 3.2% effective from October 1, 2023, through September 30, 2024 [63]. - The Bank's total risk-based capital ratio is 13.09%, also above the well-capitalized minimum of 10.00% [66]. - Huntington must maintain a minimum outstanding eligible long-term debt amount of no less than 6% of total risk-weighted assets if the proposed long-term debt requirements are adopted [57]. - The proposed Basel III endgame rules may require Huntington to calculate risk-based capital ratios under both the current U.S. standardized approach and an expanded risk-based approach [69]. - Huntington's capital planning is subject to the Federal Reserve's Comprehensive Capital Analysis and Review (CCAR) process, which evaluates capital adequacy under stress scenarios [71]. - As of December 31, 2023, Huntington's capital ratios are above the well-capitalized standards and meet applicable capital buffer requirements [67]. - The Federal Reserve may require Huntington to maintain capital ratios substantially in excess of mandated minimum levels based on economic conditions and the company's risk profile [61]. - Huntington is exempt from certain liquidity requirements due to its classification as a Category IV banking organization [56]. - Huntington's indicative SCB requirement for the 2023 Capital Plan is 3.2%, down from 3.3% [73]. - The Federal Reserve allows Huntington to make capital distributions without prior approval, provided it complies with capital rules [74]. - Huntington's ability to pay dividends is contingent on receiving dividends from its subsidiaries, which face various federal limitations [75]. Risk Management and Compliance - The FDIC requires the Bank to maintain enhanced recordkeeping for prompt payment of insured deposits in case of failure [97]. - The FDIC's DIF reserve ratio is at risk of not meeting the statutory minimum of 1.35% by September 30, 2028, without increasing deposit insurance assessment rates [98]. - The Bank submitted its most recent resolution plan to the FDIC on November 30, 2022, in compliance with new proposed rules [80]. - Huntington is required to serve as a source of financial strength to the Bank, potentially necessitating capital injections during financial distress [81]. - The Volcker Rule prohibits Huntington from engaging in short-term proprietary trading and imposes compliance obligations [79]. - The Anti-Money Laundering Act of 2020 may significantly alter due diligence and reporting requirements for the Bank [90]. - The CCPA allows California residents to access, delete, and opt out of sharing their personal information, with penalties for violations [94]. - The FDIC's special assessment for bank failures in H1 2023 will be based on estimated uninsured deposits, with a total accrued liability of approximately $214 million recognized in Q4 2023 [99]. - The CRA framework will be revised, affecting large banks' ratings, with new assessment areas and data collection requirements expected to take effect on April 1, 2024 [107]. Community Commitment and ESG Initiatives - Huntington committed $40 billion over five years to its Community Plan, with $13.6 billion allocated to affordable housing financing and consumer lending as of September 30, 2023 [117]. - The bank has reached $5.6 billion of its $10 billion commitment to expand small business lending programs through September 30, 2023 [117]. - Huntington's Lift Local Business® program has committed $100 million to support under-resourced entrepreneurs, with $89 million reached by October 31, 2023 [118]. - The bank's Climate Risk Director is responsible for assessing climate-related risks and emissions calculations, contributing to sustainability efforts [115]. - Huntington's ESG strategy includes a Chief ESG Officer overseeing compliance and goal setting, with a focus on environmental and social issues [114]. - The bank's commitment to diversity, equity, and inclusion initiatives has reached $10.2 billion as of September 30, 2023 [117]. - The total workforce at Huntington was 67% diverse, with middle, senior, and executive management levels being 48% diverse as of December 31, 2023 [131]. - In 2023, Huntington colleagues completed over 500,000 training hours as part of their development programs [127]. - Huntington offers a minimum hourly wage of $20, alongside competitive compensation and benefits to enhance employee retention [128]. - The company is committed to pay equity, conducting annual pay equity analyses to ensure fairness across gender and race [129]. Economic and Market Risks - Economic uncertainties, including inflation and rising interest rates, could adversely affect Huntington's business and financial condition [141]. - Changes in interest rates could significantly impact Huntington's net interest income and the value of its loans and securities [144]. - Prolonged inflation may negatively affect Huntington's profitability and stock price due to increased fixed costs and decreased consumer purchasing power [151]. - Competition in the financial services sector is expected to intensify, impacting Huntington's ability to attract and retain customers [152]. - A reduction in access to capital markets could hinder the ability to meet cash flow requirements and fund corporate expansion [156]. - Rising interest rates and disruptions in financial markets may negatively impact Huntington's ability to raise additional capital on acceptable terms [158]. - A downgrade in credit ratings could adversely affect access to liquidity and increase the cost of funds, impacting growth and profitability [159]. - Global economic instability and geopolitical matters could materially affect Huntington's results of operations and financial condition [161]. Operational and Cybersecurity Risks - Operational risks exist due to reliance on internal and third-party systems, which could disrupt business and impact liquidity [162]. - Cybersecurity risks have significantly increased, with potential for serious reputational harm and financial exposure due to cyber-attacks [165]. - Legislative and regulatory focus on cybersecurity and data privacy is increasing, with proposed regulations enhancing cyber risk management standards [171]. - The company faces significant operational risks, including fraud, unauthorized transactions, and system failures, which could lead to financial loss and litigation [174]. - Compliance with laws and regulations is costly and complex, potentially leading to fines and restrictions that adversely affect financial results [188]. - The company relies on third-party service providers for key business infrastructure, which poses risks that could impact service delivery and increase costs [181]. - Legislative and regulatory changes may materially affect the company by increasing costs and limiting business opportunities [191]. - The company is subject to heightened regulatory scrutiny regarding consumer practices, which could lead to increased costs and potential revenue loss [190]. Strategic Planning and Governance - The success of the company's strategic plan depends on the retention of key personnel; loss of executive officers could adversely affect business operations and stock value [202]. - Capital and liquidity regulations, including the CCAR assessment process, may require the company to maintain higher capital levels, impacting dividend payments and stock repurchases [203]. - Proposed changes to capital and liquidity requirements could increase operational costs and affect the company's financial results and ability to distribute capital [205]. - Cybersecurity is a critical component of the company's risk management strategy, with ongoing assessments and third-party reviews to ensure effectiveness [209]. - The company maintains a global cybersecurity threat operation to promptly detect and respond to incidents, minimizing disruptions to business [212]. - The company's headquarters is located in the Huntington Center, with a lease term expiring in 2030 and options for renewal [215].

Financial Performance - For Q3 2023, net income was $547 million, or $0.35 per diluted common share, down from $594 million, or $0.39 per diluted common share in Q3 2022[18]. - Net income attributable to Huntington for Q3 2023 decreased to $547 million, an 8% decline from $594 million in Q3 2022[34]. - Year-to-date net income applicable to common shares for 2023 was $1,602 million, reflecting a 6% increase from $1,508 million in 2022[36]. - Net income for the nine months ended September 30, 2023, was $1,723 million, an increase from $1,600 million in the same period of 2022, representing a growth of approximately 7.7%[210]. - The provision for credit losses increased to $276 million in 2023 from $198 million in 2022, indicating a rise of 39.4%[210]. Revenue and Income Sources - Interest income for Q3 2023 increased to $2,313 million, a 46% rise from $1,589 million in Q3 2022[34]. - Noninterest income rose by $11 million, or 2%, to $509 million, driven by a $33 million increase from favorable mark-to-market on pay-fixed swaptions[21]. - Total noninterest income for Q3 2023 was $509 million, a slight increase of 2% compared to $498 million in Q3 2022[34]. - Noninterest income for Consumer & Regional Banking decreased by $26 million, or 3%, mainly due to lower mortgage banking income and service charges[178]. Credit Losses and Provisions - The provision for credit losses decreased by $7 million to $99 million, while the allowance for credit losses (ACL) increased by $138 million to $2.4 billion, or 1.96% of total loans and leases[20]. - The provision for credit losses for Q3 2023 was $99 million, a decrease of 7% from $106 million in Q3 2022[34]. - The total provision for credit losses for the third quarter of 2023 was $99 million, a decrease of $7 million compared to the third quarter of 2022[54]. - The allowance for credit losses (ACL) was $2.368 billion, or 1.96% of total loans and leases, as of September 30, 2023, up from $2.271 billion, or 1.90%, at December 31, 2022[92]. Assets and Liabilities - Total assets increased by $3.7 billion, or 2%, to $186.7 billion, with interest-bearing deposits at the Federal Reserve Bank rising by $4.9 billion, or 100%[22]. - Average assets for Q3 2023 increased by $7.0 billion, or 4%, to $186.6 billion, driven by a $6.1 billion increase in average interest-bearing deposits at the Federal Reserve Bank[41]. - Total loans and leases as of September 30, 2023, amounted to $120.853 billion, compared to $119.523 billion at the end of 2022[70]. - The total interest-bearing liabilities increased by $15.2 billion, or 13%, compared to the previous year[40]. Capital and Equity - The tangible common equity to tangible assets ratio improved to 5.70%, up 15 basis points from December 31, 2022, while the CET1 risk-based capital ratio increased to 10.10%[23]. - Shareholders' equity totaled $18.5 billion at September 30, 2023, an increase of $752 million, or 4%, compared to December 31, 2022[154]. - The consolidated CET1 risk-based capital ratio increased to 10.10% at September 30, 2023, from 9.36% at December 31, 2022[148]. - The total risk-based capital ratio for the consolidated entity was 14.11% at September 30, 2023, compared to 13.09% at December 31, 2022[148]. Market and Economic Outlook - The economic outlook anticipates a slowdown over the next three quarters, with inflation expected to approach 2% by Q3 2024[25]. - The unemployment rate is forecasted to peak at 4.2% in mid-2025, with GDP expected to be 1.9% by the fourth quarter of 2024[82]. - The unemployment rate is projected to rise to 5.5% by the end of 2023, reflecting a 1.8% increase from baseline projections[199]. Operational Efficiency - The efficiency ratio for Q3 2023 was 57.0%, compared to 54.4% in Q3 2022, indicating a decline in operational efficiency[34]. - Total noninterest expense for Q3 2023 was $1.1 billion, up 4% from $1.053 billion in Q3 2022[59]. - Personnel costs increased by $8 million, or 1%, in Q3 2023, reflecting $8 million of severance expense related to staffing efficiencies[59]. Dividends and Shareholder Returns - The quarterly common stock cash dividend declared on October 18, 2023, is $0.155 per share, with estimated cash demands of approximately $224 million per quarter[136]. - Total cash demands for preferred stock dividends are expected to be approximately $38 million per quarter[136]. - Cash dividends declared for common shares were $0.155 per share, totaling $228 million for Q3 2023[208]. Risk Management - The company utilizes various derivative instruments, including interest rate swaps and caps, to manage interest rate risk and minimize earnings fluctuations[106]. - The net interest income at risk for a -200 basis point change scenario was -5.3% as of September 30, 2023, compared to -4.1% at the end of 2022, indicating increased sensitivity to interest rate changes[100]. - Economic value of equity at risk for a +200 basis point change scenario was -6.7% at September 30, 2023, down from -17.3% at December 31, 2022, reflecting improved equity sensitivity[103].