Huntington(US:HBAN)2026-02-10 17:22Summary of Huntington Bancshares Conference Call Company Overview - Company: Huntington Bancshares (NasdaqGS: HBAN) - Date: February 10, 2026 - Key Speakers: Steve Steinour (Chairman and CEO), Zach Wasserman (CFO) Key Messages 1. Strong Business Model: Huntington has developed a unique and scalable super-regional bank model that delivers robust revenue and earnings growth across 21 regional markets, supported by locally led teams and a national commercial bank [1][2] 2. Organic Growth: Focused execution has resulted in powerful organic growth across all business facets, with a reported 11% revenue growth and 16% EPS growth in 2025 [3][4] 3. Integration Expertise: The company has proven expertise in integrating new partners, which creates economic value and supports customer service [2][5] 4. Value Creation Flywheel: The combination of these elements creates a compelling flywheel for value creation, which is expected to accelerate as the company expands its footprint and capabilities [2][6] Financial Performance - 2025 Results: - Revenue growth of 11% - EPS growth of 16% - Return on capital at 16% - Tangible book value per share growth of 19% [3][4] - 2026 Projections: - Expected revenue of approximately $12.6 billion - Anticipated EPS between $1.90 and $1.93 in 2027 [12][16] Strategic Partnerships - Cadence Partnership: The recent partnership with Cadence is expected to enhance the consumer and regional bank franchise, expanding operations into 21 states, particularly Texas [2][6] - Texas Market: The combined presence in Texas is a strategic advantage, with projected population growth and economic development in the Texaplex region [7][8] - Cost Synergies: Expected cost synergies from the Cadence and Veritex partnerships are projected to reach $435 million annually, with $340 million benefiting operating expenses in 2026 [20][21] Revenue and Expense Management - Revenue Growth Drivers: - Net interest income growth projected at 10%-13% - Fee revenue growth expected at 13%-16% [21][22] - Expense Management: The company aims to reduce baseline operating costs by at least 1% annually, with cumulative savings of $1.4 billion since 2019 [17][18] Investment Strategy - Reinvestment Focus: The company plans to reinvest savings from cost efficiencies into high-value revenue-generating initiatives, with a target to double the investment plowback ratio from 4.5% in 2019 to over 8% [17][19] - Share Repurchase Plans: Approximately $200 million in share repurchases is expected, with a cumulative reduction in share count of 2%-3% by 2027 [72] Market Position and Future Outlook - Competitive Advantage: The local delivery model and national specialty businesses are expected to drive growth, with a focus on maintaining high returns on tangible common equity (18%-19%) and positive operating leverage [25][85] - Long-term Growth: The company is optimistic about its growth trajectory, supported by strong operational results and strategic partnerships [25][86] Conclusion - Huntington Bancshares is positioned for strong growth through its scalable business model, successful integration of partnerships, and disciplined financial management. The company is focused on leveraging its competitive advantages to deliver sustained value to shareholders in the coming years [25][86]