Huntington(US:HBAN)2025-12-10 16:02Summary of Huntington Bancshares Conference Call Company Overview - Company: Huntington Bancshares (NasdaqGS: HBAN) - Date: December 10, 2025 - Key Speakers: Steve Steinour (Chairman, President, and CEO), Zach Wasserman (CFO) Key Industry and Company Insights 1. Growth Strategy - Huntington is focused on best-in-class loan and deposit growth, particularly in the Carolinas and Texas, supported by recent acquisitions of Veritex and Cadence [1][2] - The company emphasizes a differentiated operating model that drives sustained above-peer growth, with a focus on organic growth as the foundation of its strategy [2][3] 2. Acquisitions and Integration - The integration of Veritex and Cadence is seen as a springboard for organic growth rather than an alternative to it, with a disciplined approach to capital allocation and risk management [3][4] - Huntington's proven track record of successful integrations, such as with TCF, gives confidence in the upcoming integrations [4][6] 3. Financial Performance - Loan and deposit growth has significantly outpaced peers, with expectations to maintain strong momentum into 2026 [4][5] - The company has achieved a growth rate of 5% annually post-TCF integration, compared to a pre-acquisition growth rate of just over 4% [7][8] 4. Market Positioning - Huntington is positioned to become the 10th largest bank in the U.S. with a strong presence in high-growth markets, particularly in Texas [9][10] - The company anticipates significant demographic tailwinds in its new markets, with a focus on customer acquisition and deepening relationships [10][11] 5. Revenue Synergies - Expected revenue synergies from the Cadence acquisition include offering a full suite of Huntington products to Cadence's customer base and enhancing customer relationships [11][12] - The company has a strong pipeline of capital markets activities already emerging from the Veritex partnership [44][45] 6. Operational Efficiency - Huntington has maintained a commitment to positive operating leverage, with a focus on re-engineering costs to invest in growth areas such as technology and marketing [39][40] - The company has achieved a positive operating leverage of 250 basis points and expects to continue this trend into 2026 [32][40] 7. Customer Retention and Integration Challenges - Customer retention post-merger is a priority, with efforts focused on building trust and transparency with new colleagues and customers [45][46] - The company is prepared for the integration challenges, with a focus on maintaining organic growth during the integration process [24][25] 8. Future Outlook - Huntington is optimistic about its growth trajectory, with expectations for continued strong loan and deposit production and growth in value-added fee services [32][48] - The company is not looking to expand beyond its current geographic footprint but aims to deepen its market share in existing regions [22][23] Additional Important Points - The competitive landscape in the South and Texas is described as dynamic, with expected market growth rates significantly above the national average [16][17] - Huntington's approach to M&A is cautious, focusing on organic growth as a prerequisite for future partnerships [21][22] - The company has invested in data and automation to prepare for regulatory requirements associated with its Category III designation, with no expected incremental expenses [47]