Financial Performance - For Q3 2025, Huntington reported net income of $629 million, or $0.41 per diluted common share, compared to $517 million, or $0.33 per diluted common share in Q3 2024, representing a 22% increase in net income [24]. - Net interest income for Q3 2025 was $1.5 billion, an increase of $155 million, or 11%, from the previous year, with FTE net interest income rising by $159 million, or 12% [25]. - Noninterest income reached $628 million, up $105 million, or 20%, driven by gains in various revenue streams including payments and cash management [27]. - The efficiency ratio improved to 57.4% in Q3 2025, down from 59.4% in Q3 2024, indicating better cost management [21]. - Return on average total assets increased to 1.19% in Q3 2025, compared to 1.04% in Q3 2024, reflecting improved profitability [21]. - Net income attributable to Huntington for the nine months ended September 30, 2025, was $1,692 million, an increase of $282 million, or 20%, compared to $1,410 million in the same period of 2024 [181]. - Net income attributable to Huntington for the three months ended September 30, 2025, was $629 million, up 21.6% from $517 million in the same period last year [212]. Asset and Liability Management - Total assets increased to $210.2 billion, up $6.0 billion or 3% from December 31, 2024, driven by a $7.9 billion or 6% increase in loans and leases [28]. - Total liabilities rose to $187.9 billion, an increase of $3.5 billion or 2%, primarily due to a $2.8 billion or 2% increase in total deposits [28]. - Average assets for Q3 2025 were $209.7 billion, an increase of $11.4 billion, or 6%, from Q3 2024, driven by a 9% increase in average loans and leases [40]. - Average liabilities for Q3 2025 increased by $10.2 billion, or 6%, primarily due to an $8.3 billion, or 5%, increase in average deposits [41]. - Total deposits increased by $2.8 billion, or 2%, to $165.2 billion at September 30, 2025, compared to $162.4 billion at December 31, 2024 [131]. Credit Quality and Loss Provisions - The provision for credit losses rose by $16 million, or 15%, to $122 million in Q3 2025, with the allowance for credit losses increasing to $2.6 billion, or 1.86% of total loans and leases [26]. - Nonaccrual loans and leases (NALs) totaled $808 million at September 30, 2025, an increase from $783 million at December 31, 2024, with NALs as a percentage of total loans and leases at 0.59% [84]. - Net charge-offs (NCOs) for the third quarter of 2025 were $75 million, or 0.22% of average total loans and leases, a decrease from $93 million, or 0.30%, in the same quarter of the previous year [82]. - The provision for credit losses for Q3 2025 was $122 million, an increase of $16 million, or 15%, compared to Q3 2024 [51]. - The Allowance for Credit Losses (ACL) at September 30, 2025, represents the current estimate of lifetime credit losses expected from the loan and lease portfolio, with management utilizing statistical models based on economic parameters [199]. Mergers and Acquisitions - Huntington completed the acquisition of Veritex Holdings, issuing approximately $1.7 billion in total consideration, with Veritex holding $12.8 billion in assets [17]. - Huntington announced a definitive merger agreement with Cadence Bank, valued at approximately $7.4 billion, expected to close in Q1 2026 [18]. - The integration of Huntington and Cadence is subject to regulatory approvals, and any delays could adversely affect the expected benefits of the transaction [190]. Capital and Liquidity - The CET1 risk-based capital ratio was 10.6% at September 30, 2025, slightly up from 10.5% at December 31, 2024 [29]. - The total risk-based capital ratio was 14.7% at September 30, 2025, up from 14.3% at December 31, 2024 [166]. - The company maintains capital ratios in excess of the well-capitalized standards established by the Federal Reserve [168]. - The parent company believes it has sufficient liquidity and capital resources to meet cash flow obligations over the next 12 months [148]. - The company has filed an automatic shelf registration statement with the SEC to issue debt or equity securities as needed [147]. Economic Outlook - The labor market faced challenges with an unemployment rate of 4.3%, but the economy is expected to transition to moderate GDP growth [34]. - The Federal Reserve reduced the federal funds rate by 25 basis points in September 2025, marking the first adjustment since December 2024 [33]. - The allowance for credit losses (ACL) reflects ongoing economic uncertainty, with the unemployment rate expected to end 2025 at 4.4% and GDP growth forecasted at approximately 1% [87]. - In a hypothetical adverse scenario, the unemployment rate is projected to reach 6.0% by the end of 2025, significantly higher than the baseline projection of 4.4% [203]. - The projected GDP decline in the adverse scenario is estimated at 3.0% in Q4 2025, contrasting with a baseline growth of 1.0% [203]. Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.155 per common share, totaling approximately $269 million for the current quarter [146]. - During the first nine months of 2025, the Bank paid $750 million in common dividends and $34 million in preferred dividends to the parent company [147]. - The company has authorized a share repurchase program of up to $1.0 billion, with no shares repurchased under the current authorization as of the report date [173].
HUNTINGTON BANCS(HBANL) - 2025 Q3 - Quarterly Report