Huntington(US:HBAN)2026-01-22 15:02Financial Data and Key Metrics Changes - In Q4 2025, earnings per common share was $0.30, and on an adjusted basis, EPS was $0.37, reflecting a 9% year-over-year increase [17] - Revenue growth for 2025 was 11%, with adjusted EPS growth at 16% and 290 basis points of positive operating leverage [7][17] - 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 [17][19] - Average deposits increased 5.1% quarter-over-quarter and 8.6% year-over-year, with core deposits growing $5.5 billion year-over-year [19][20] 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% [8] - New initiatives contributed $1.8 billion to loan growth, with significant contributions from Texas and North and South Carolina expansions [17][18] - Fee income from payments grew 5%, with commercial payment revenues up 8% year-over-year, and wealth management grew 10% [22][24] Market Data and Key Metrics Changes - The company expanded its consumer and regional banking presence to 21 states, focusing on fast-growing markets [4][5] - The partnership with Veritex and Cadence is expected to enhance market growth and customer share in Texas and other new markets [15] Company Strategy and Development Direction - The company aims to become the leading people-first, customer-centered bank, leveraging a differentiated operating model [4][5] - Strategic investments in branch build-out, new commercial verticals, and fintech solutions are designed to enhance long-term growth [9][10] - The focus remains on organic growth, customer relationship deepening, and expanding wallet share while maintaining a moderate to low-risk profile [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth targets, emphasizing the effectiveness of their operating model and investments [34] - The outlook for 2026 includes expectations for net interest income growth between 10% and 13%, supported by loan and deposit growth [29][30] - Management anticipates continued strong performance in fee revenues, projecting growth between 13% and 16% [30] Other Important Information - The company achieved a 19% year-over-year increase in tangible book value while returning 40% of earnings through dividends [27] - Credit quality remains strong, with net charge-offs at 24 basis points and a criticized asset ratio of 4.2% [28] 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 a focus on positive operating leverage [41][42] 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 [46][47] Question: Expected first quarter expenses - Management refrained from providing specific quarterly guidance but emphasized the importance of positive operating leverage [52][53] Question: Revenue-producing initiatives in expense guidance - Very little of the revenue synergies are included in the current guidance, with more details expected in future updates [55][56] Question: Credit guidance and seasoning of loans - Management confirmed that while seasoning is a factor, the overall credit performance has been exceptional, with expectations for 2026 in the lower end of the guidance range [86]