Huntington(US:HBAN)2026-01-22 15:00Financial 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]