Huntington(HBAN) - 2025 Q3 - Quarterly Results

General Information & Disclosures Details financial statement preparation, management estimates, and the application of non-GAAP measures for comprehensive reporting Notes on Financial Statement Preparation The preparation of financial statements in accordance with GAAP necessitates management's use of estimates and assumptions, which may lead to actual results differing from those estimates - Financial statement data relies on management estimates and assumptions, which may lead to differences from actual results[4] Non-GAAP Financial Measures Non-GAAP measures, including FTE basis and non-regulatory capital ratios, enhance understanding of financial position and operational results - Non-GAAP financial measures are used to provide additional insights into operations and financial position, with comparable GAAP measures and reconciliations included[5] - Fully-Taxable Equivalent (FTE) basis is a non-GAAP measure for comparing interest margins and assessing revenue from taxable and tax-exempt sources, assuming a 21% federal statutory tax rate[6] - Non-regulatory capital ratios, including Tangible common equity to tangible assets, Tangible common equity to risk-weighted assets, and Adjusted common equity tier 1 (CET1), evaluate capital utilization and adequacy, differing from regulatory definitions by excluding preferred securities and including AOCI impact for adjusted CET1[7][9] Quarterly Financial Performance Presents quarterly financial performance analysis, covering key statistics, balance sheet, net interest margin, income, credit quality, and capital adequacy Quarterly Key Statistics Q3 2025 shows significant growth in net income and diluted EPS, improved profitability and efficiency, and stable asset quality metrics | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change vs 2Q25 | Change vs 3Q24 | | :--------------------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Net interest income (FTE) | $1,523M | $1,483M | $1,364M | 3% | 12% | | Net income applicable to common shares | $602M | $509M | $481M | 18% | 25% | | Net income per common share - diluted | $0.41 | $0.34 | $0.33 | 21% | 24% | | Return on average assets | 1.19% | 1.04% | 1.04% | +0.15 pp | +0.15 pp | | Return on average common shareholders' equity | 12.4% | 11.0% | 10.8% | +1.4 pp | +1.6 pp | | Net interest margin | 3.13% | 3.11% | 2.98% | +0.02 pp | +0.15 pp | | Efficiency ratio | 57.4% | 59.0% | 59.4% | -1.6 pp | -2.0 pp | | Average total assets | $209,727M | $207,852M | $198,278M | 1% | 6% | | Average loans and leases | $135,944M | $133,171M | $124,507M | 2% | 9% | | Average total deposits | $164,812M | $163,429M | $156,488M | 1% | 5% | | NCOs as a % of average loans and leases | 0.22% | 0.20% | 0.30% | +0.02 pp | -0.08 pp | | NAL ratio | 0.59% | 0.62% | 0.58% | -0.03 pp | +0.01 pp | | NPA ratio | 0.60% | 0.63% | 0.62% | -0.03 pp | -0.02 pp | | Common equity tier 1 risk-based capital ratio | 10.6% | 10.5% | 10.4% | +0.1 pp | +0.2 pp | | Tangible common equity / tangible asset ratio | 6.8% | 6.6% | 6.4% | +0.2 pp | +0.4 pp | Consolidated Balance Sheets Total assets increased by 3% and shareholders' equity by 13% as of September 30, 2025, driven by loan and lease growth | Metric | Sep 30, 2025 | Dec 31, 2024 | Percent Change | | :-------------------------------- | :----------- | :----------- | :------------- | | Total assets | $210,228M | $204,230M | 3% | | Total liabilities | $187,942M | $184,448M | 2% | | Total Huntington shareholders' equity | $22,248M | $19,740M | 13% | | Loans and leases | $137,956M | $130,042M | 6% | | Deposits | $165,212M | $162,448M | 2% | | Preferred stock | $2,731M | $1,989M | 37% | | Accumulated other comprehensive income (loss) | $(2,071)M | $(2,866)M | 28% | Loans and Leases Composition Total loans and leases reached $137,956 million at September 30, 2025, with commercial loans at 57% and consumer loans at 43% | Loan Type | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------- | :----------- | :----------- | | Total loans and leases | $137,956M | $130,042M | | Commercial and industrial | $62,978M | $56,809M | | Commercial real estate | $10,732M | $11,078M | | Lease financing | $5,515M | $5,454M | | Residential mortgage | $24,502M | $24,242M | | Automobile | $15,996M | $14,564M | | Home equity | $10,314M | $10,142M | - Commercial loans constituted 57% of the total loan portfolio, while consumer loans made up 43% as of September 30, 2025[17] Deposits Composition Total deposits were $165,212 million at September 30, 2025, with money market deposits at 38% and Consumer & Regional Banking holding 67% | Deposit Type | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------- | :----------- | :----------- | | Total deposits | $165,212M | $162,448M | | Demand deposits - noninterest bearing | $28,596M | $29,345M | | Demand deposits - interest bearing | $46,056M | $43,378M | | Money market deposits | $62,837M | $60,730M | | Savings deposits | $14,986M | $14,723M | | Time deposits | $12,737M | $14,272M | - Money market deposits represented the largest portion of total deposits at 38% as of September 30, 2025[18] - The Consumer & Regional Banking segment accounted for 67% of total deposits[18] Consolidated Quarterly Average Balance Sheets Average total assets increased 1% QoQ and 6% YoY for Q3 2025, driven by growth in average loans, leases, and deposits | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change vs 2Q25 | Change vs 3Q24 | | :-------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Average total assets | $209,727M | $207,852M | $198,278M | 1% | 6% | | Average earning assets | $192,732M | $191,092M | $181,891M | 1% | 6% | | Average loans and leases | $135,944M | $133,171M | $124,507M | 2% | 9% | | Average total deposits | $164,812M | $163,429M | $156,488M | 1% | 5% | | Average Huntington shareholders' equity | $21,348M | $20,548M | $20,113M | 4% | 6% | Consolidated Quarterly Net Interest Margin - Interest Income / Expense Net interest income (FTE) for Q3 2025 was $1,523 million, increasing QoQ and YoY due to higher interest income from loans and leases | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total earning assets interest income | $2,617M | $2,572M | $2,568M | | Total interest-bearing liabilities interest expense | $1,094M | $1,089M | $1,204M | | Net interest income | $1,523M | $1,483M | $1,364M | | Interest income from loans and leases | $2,057M | $1,977M | $1,911M | Consolidated Quarterly Net Interest Margin - Yields / Rates Net interest margin improved to 3.13% in Q3 2025, reflecting a higher net interest rate spread despite a slight increase in deposit costs | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total earning assets yield | 5.39% | 5.40% | 5.62% | | Total interest-bearing liabilities rate | 2.81% | 2.85% | 3.32% | | Net interest rate spread | 2.58% | 2.55% | 2.30% | | Net interest margin | 3.13% | 3.11% | 2.98% | | Total cost of deposits | 2.00% | 2.02% | 2.40% | - Net interest margin increased by 0.02 percentage points QoQ and 0.15 percentage points YoY[23] - Total cost of deposits decreased by 0.02 percentage points QoQ and 0.40 percentage points YoY[23] Selected Quarterly Income Statement Data Net income applicable to common shares increased 18% QoQ and 25% YoY in Q3 2025, driven by higher net interest and noninterest income | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change vs 2Q25 | Change vs 3Q24 | | :--------------------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Net interest income | $1,506M | $1,467M | $1,351M | 3% | 11% | | Provision for credit losses | $122M | $103M | $106M | 18% | 15% | | Total noninterest income | $628M | $471M | $523M | 33% | 20% | | Total noninterest expense | $1,246M | $1,197M | $1,130M | 4% | 10% | | Income before income taxes | $766M | $638M | $638M | 20% | 20% | | Net income applicable to common shares | $602M | $509M | $481M | 18% | 25% | | Net income per common share - diluted | $0.41 | $0.34 | $0.33 | 21% | 24% | | Total revenue (FTE) | $2,151M | $1,954M | $1,887M | 10% | 14% | Quarterly Mortgage Banking Noninterest Income Mortgage banking income increased 54% QoQ and 13% YoY in Q3 2025, driven by higher net origination and improved MSR risk management | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change vs 2Q25 | Change vs 3Q24 | | :--------------------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Net origination and secondary marketing income | $30M | $26M | $25M | 15% | 20% | | Net mortgage servicing income | $12M | $2M | $13M | 500% | (8)% | | Mortgage banking income | $43M | $28M | $38M | 54% | 13% | | Mortgage origination volume | $2,243M | $2,412M | $1,883M | (7)% | 19% | - Net MSR risk management showed a positive contribution of $3 million in Q3 2025, a significant improvement from a $(6) million loss in Q2 2025 and a $2 million gain in Q3 2024[26] Quarterly Credit Reserves Analysis ALLL increased to $2,374 million at September 30, 2025, with ALLL as a percentage of total loans and leases slightly decreasing to 1.72% | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | | Allowance for loan and lease losses, end of period | $2,374M | $2,331M | $2,235M | | Total allowance for credit losses, end of period | $2,562M | $2,515M | $2,436M | | ALLL as % of total loans and leases | 1.72% | 1.73% | 1.77% | | ACL as % of total loans and leases | 1.86% | 1.86% | 1.93% | | Provision for loan and lease losses | $118M | $134M | $24M | - The provision for loan and lease losses was $118 million for Q3 2025, a decrease from $134 million in Q2 2025 but significantly higher than $24 million in Q3 2024[29] Quarterly Net Charge-Off Analysis Total net charge-offs were $75 million in Q3 2025, with an annualized percentage of average loans and leases at 0.22% | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | | Total net charge-offs | $75M | $66M | $93M | | Net charge-offs as a % of average loans and leases | 0.22% | 0.20% | 0.30% | | Commercial and industrial net charge-offs | $39M | $32M | $51M | | Total consumer net charge-offs | $39M | $35M | $39M | - Commercial real estate showed net recoveries of $(4) million in Q3 2025, compared to $(3) million in Q2 2025 and $5 million in Q3 2024[30] Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) Total NALs decreased to $808 million at September 30, 2025, with the NAL ratio at 0.59%, and total NPAs also decreased | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | | Total nonaccrual loans and leases | $808M | $842M | $738M | | Total nonperforming assets | $821M | $852M | $784M | | NALs as a % of total loans and leases | 0.59% | 0.62% | 0.58% | | NPA ratio | 0.60% | 0.63% | 0.62% | | New nonperforming assets | $252M | $343M | $254M | - New nonperforming assets decreased to $252 million in Q3 2025 from $343 million in Q2 2025[31] Quarterly Accruing Past Due Loans and Leases Total accruing loans and leases past due 90+ days, including U.S. Government guaranteed loans, were $234 million at September 30, 2025 | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | | Total, excl. loans guaranteed by the U.S. Government | $82M | $92M | $88M | | Add: loans guaranteed by U.S. Government | $152M | $149M | $136M | | Total accruing loans and leases past due 90+ days | $234M | $241M | $224M | | Ratio (incl. guaranteed) as % of total loans and leases | 0.17% | 0.18% | 0.18% | Quarterly Capital Under Current Regulatory Standards (Basel III) Huntington Bancshares maintained strong Basel III capital ratios, with CET1 risk-based capital ratio increasing to 10.6% at September 30, 2025 | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | | Common equity tier 1 capital | $15,924M | $15,539M | $14,803M | | Tier 1 capital | $18,665M | $17,538M | $17,207M | | Total risk-based capital | $22,022M | $21,003M | $20,110M | | Risk-weighted assets (RWA) | $150,221M | $148,602M | $142,543M | | Common equity tier 1 risk-based capital ratio | 10.6% | 10.5% | 10.4% | | Tier 1 leverage ratio | 9.0% | 8.5% | 8.8% | | Adjusted CET1 ratio | 9.2% | 9.0% | 8.9% | - The impact of the CECL deferral was fully phased in for periods beginning on or after January 1, 2025[36] Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data Tangible book value per common share increased to $9.54 at September 30, 2025, with stable cash dividends and consistent employee and branch networks | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | | Cash dividends declared per common share | $0.155 | $0.155 | $0.155 | | Tangible book value per common share | $9.54 | $9.13 | $8.65 | | Tangible common equity / tangible asset ratio | 6.8% | 6.6% | 6.4% | | Number of employees (Average full-time equivalent) | 20,247 | 20,242 | 20,043 | | Number of domestic full-service branches | 972 | 971 | 975 | | Return on average tangible common shareholders' equity | 17.8% | 16.1% | 16.2% | Year-to-Date Financial Performance This section presents year-to-date financial performance, including key statistics, average balance sheets, net interest margin, income, credit quality, and nonperforming assets Year-to-Date Key Statistics YTD September 30, 2025, shows strong year-over-year growth in net income and diluted EPS, improved profitability, efficiency, and stable asset quality | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Change (Amount) | Change (Percent) | | :--------------------------------------- | :----------------------------- | :----------------------------- | :-------------- | :--------------- | | Net interest income (FTE) | $4,447M | $3,989M | $458M | 11% | | Net income applicable to common shares | $1,611M | $1,303M | $308M | 24% | | Net income per common share - diluted | $1.09 | $0.88 | $0.21 | 24% | | Return on average assets | 1.09% | 0.97% | | | | Return on average common shareholders' equity | 11.6% | 10.2% | | | | Net interest margin | 3.12% | 3.00% | | | | Efficiency ratio | 58.4% | 61.2% | | | | Average total assets | $207,572M | $194,395M | $13,177M | 7% | | Average loans and leases | $133,344M | $123,276M | $10,068M | 8% | | Average total deposits | $163,292M | $153,609M | $9,683M | 6% | | NCOs as a % of average loans and leases | 0.23% | 0.30% | | | Consolidated Year-to-Date Average Balance Sheets Average total assets increased 7% year-over-year for YTD September 30, 2025, driven by growth in average loans, leases, and deposits | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Change (Amount) | Change (Percent) | | :-------------------------- | :----------------------------- | :----------------------------- | :-------------- | :--------------- | | Average total assets | $207,572M | $194,395M | $13,177M | 7% | | Average earning assets | $190,724M | $177,920M | $12,804M | 7% | | Average loans and leases | $133,344M | $123,276M | $10,068M | 8% | | Average total deposits | $163,292M | $153,609M | $9,683M | 6% | | Average Huntington shareholders' equity | $20,636M | $19,529M | $1,107M | 6% | Consolidated Year-to-Date Net Interest Margin - Interest Income / Expense Net interest income (FTE) for YTD September 30, 2025, was $4,447 million, an 11% YoY increase due to higher interest income from loans and leases | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total earning assets interest income | $7,693M | $7,450M | | Total interest-bearing liabilities interest expense | $3,246M | $3,461M | | Net interest income | $4,447M | $3,989M | | Interest income from loans and leases | $5,947M | $5,591M | Consolidated Year-to-Date Net Interest Margin - Yields / Rates YTD net interest margin improved to 3.12% for September 30, 2025, compared to 3.00% prior year, driven by an increased net interest rate spread | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total earning assets yield | 5.39% | 5.59% | | Total interest-bearing liabilities rate | 2.84% | 3.30% | | Net interest rate spread | 2.55% | 2.29% | | Net interest margin | 3.12% | 3.00% | | Total cost of deposits | 2.02% | 2.36% | - Net interest margin increased by 0.12 percentage points year-over-year[48] - Total cost of deposits decreased by 0.34 percentage points year-over-year[50] Selected Year-to-Date Income Statement Data Net income applicable to common shares increased 24% YoY for YTD September 30, 2025, supported by 11% net interest income and 8% noninterest income growth | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Change (Amount) | Change (Percent) | | :--------------------------------------- | :----------------------------- | :----------------------------- | :-------------- | :--------------- | | Net interest income | $4,399M | $3,950M | $449M | 11% | | Provision for credit losses | $340M | $313M | $27M | 9% | | Total noninterest income | $1,593M | $1,481M | $112M | 8% | | Total noninterest expense | $3,595M | $3,384M | $211M | 6% | | Income before income taxes | $2,057M | $1,734M | $323M | 19% | | Net income applicable to common shares | $1,611M | $1,303M | $308M | 24% | | Net income per common share - diluted | $1.09 | $0.88 | $0.21 | 24% | | Total revenue (FTE) | $6,040M | $5,470M | $570M | 10% | Year-to-Date Mortgage Banking Noninterest Income YTD mortgage banking income increased 3% YoY for September 30, 2025, driven by higher net origination despite decreased net mortgage servicing income | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Change (Amount) | Change (Percent) | | :--------------------------------------- | :----------------------------- | :----------------------------- | :-------------- | :--------------- | | Net origination and secondary marketing income | $74M | $58M | $16M | 28% | | Net mortgage servicing income | $27M | $40M | $(13)M | (33)% | | Mortgage banking income | $102M | $99M | $3M | 3% | | Mortgage origination volume | $6,254M | $5,323M | $931M | 17% | - MSR valuation adjustment showed a $(16) million loss in YTD 2025 compared to a $6 million gain in YTD 2024[52] Year-to-Date Credit Reserves Analysis ALLL increased to $2,374 million at September 30, 2025, with ALLL as a percentage of total loans and leases at 1.72% | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Allowance for loan and lease losses, end of period | $2,374M | $2,235M | | Total allowance for credit losses, end of period | $2,562M | $2,436M | | ALLL as % of total loans and leases | 1.72% | 1.77% | | ACL as % of total loans and leases | 1.86% | 1.93% | | Provision for loan and lease losses | $357M | $255M | - The provision for loan and lease losses increased by $102 million year-over-year[55] Year-to-Date Net Charge-Off Analysis Total net charge-offs decreased to $227 million for YTD September 30, 2025, with an annualized percentage of average loans and leases at 0.23% | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Total net charge-offs | $227M | $275M | | Net charge-offs as a % of average loans and leases | 0.23% | 0.30% | | Commercial and industrial net charge-offs | $119M | $114M | | Commercial real estate net charge-offs | $(15)M | $54M | | Total consumer net charge-offs | $116M | $109M | - Commercial real estate showed net recoveries of $(15) million in YTD 2025, a significant improvement from $54 million in net charge-offs in YTD 2024[57] Year-to-Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) Total NALs increased to $808 million and total NPAs to $821 million at September 30, 2025, compared to the prior year | Metric | At Sep 30, 2025 | At Sep 30, 2024 | | :--------------------------------------- | :-------------- | :-------------- | | Total nonaccrual loans and leases | $808M | $738M | | Total nonperforming assets | $821M | $784M | | NALs as a % of total loans and leases | 0.59% | 0.58% | | NPA ratio | 0.60% | 0.62% | | New nonperforming assets (Nine Months Ended) | $845M | $833M | - Payments on nonperforming assets increased to $548 million in YTD 2025 from $375 million in YTD 2024[59]