Number of full-service branches (count)

Number of employees for Consumer & Regional Banking (count)

Number of employees for Commercial Banking (count)

Number of employees total (count)

Percentage of insured deposits (percentage)

Nonperforming assets ratio (percentage)

Nonaccrual loans and leases as a percentage of total loans and leases (percentage)

Net charge-offs as a percentage of average loans and leases (percentage)

Net charge-offs as a percentage of average commercial loans and leases (percentage)

Net charge-offs as a percentage of average consumer loans and leases (percentage)

b995485f4b2326fe60e63db7279712882072354c180abc1f2cfdfd0fddbfbc3b

Huntington Bancshares Incorporated (HBAN) is a multi-state diversified regional bank holding company headquartered in Columbus, Ohio. The company provides a wide range of commercial and consumer banking services through its subsidiaries, including deposits, lending, payments, mortgage banking, and various financing options **[0000049196-24-000047_hban-20240331.htm:3]** **[0000049196-24-000020_hban-20231231.htm:6]** **[0000049196-24-000020_hban-20231231.htm:145]**. HBAN operates through two main business segments: Consumer & Regional Banking and Commercial Banking, offering products and services such as investment management, trust, brokerage, and insurance **[0000049196-24-000020_hban-20231231.htm:6]** **[0000049196-24-000020_hban-20231231.htm:220]**. The company emphasizes a "Fair Play" banking philosophy with innovative products like 24-Hour Grace® and Asterisk-Free Checking® **[0000049196-24-000020_hban-20231231.htm:6]**.

1. **Consumer & Regional Banking** - Offers financial products and services to consumer and business customers, including deposits, lending, payments, mortgage banking, dealer financing, investment management, trust, brokerage, and insurance.
   
2. **Commercial Banking** - Provides services to mid-market to large corporate clients, including wealth management, trust, insurance, payments, and treasury management capabilities.

35c23e42f3e0d853fdf13dc48171fa6169a8eca48273b3c6f0ceea8a809a5fdf

3a6dc0ffbe22f66437e51c5e9987c74bf46914fce90bba1d4451fc25163e4a23

| Metric [Unit: $ Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Consumer & Regional Banking** | N/A | 1,200  **[0000049196-23-000044_hban-20230331.htm:81]**  | N/A | N/A | N/A | 1,264  **[0000049196-24-000047_hban-20240331.htm:81]**  | 1,329  **[0000049196-24-000076_hban-20240630.htm:88]**  | 1,388  **[0000049196-24-000095_hban-20240930.htm:89]**  |
| **Commercial Banking** | N/A | 727  **[0000049196-23-000044_hban-20230331.htm:81]**  | N/A | N/A | N/A | 668  **[0000049196-24-000047_hban-20240331.htm:81]**  | 691  **[0000049196-24-000076_hban-20240630.htm:88]**  | 710  **[0000049196-24-000095_hban-20240930.htm:89]**  |
| **Treasury / Other** | N/A | (308)  **[0000049196-23-000044_hban-20230331.htm:81]**  | N/A | N/A | N/A | (178)  **[0000049196-24-000047_hban-20240331.htm:81]**  | (217)  **[0000049196-24-000076_hban-20240630.htm:88]**  | (224)  **[0000049196-24-000095_hban-20240930.htm:89]**  |
| **Huntington Consolidated** | N/A | 1,754  **[0000049196-24-000047_hban-20240331.htm:81]**  | N/A | N/A | N/A | 1,754  **[0000049196-24-000047_hban-20240331.htm:81]**  | 1,803  **[0000049196-24-000076_hban-20240630.htm:88]**  | 1,874  **[0000049196-24-000095_hban-20240930.htm:89]**  |

291f63a20ce17d9e1b108c41d58ccdc82c21f03937e86321945363a6a579ab51

| Metric / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **NII at Risk (%)** | 4.0% **[0000049196-23-000020_hban-20221231.htm:93]** | 5.5% **[0000049196-23-000044_hban-20230331.htm:17]** | 6.4% **[0000049196-23-000082_hban-20230630.htm:21]** | 5.6% **[0000049196-23-000097_hban-20230930.htm:23]** | 5.5% **[0000049196-24-000020_hban-20231231.htm:102]** | 4.9% **[0000049196-24-000047_hban-20240331.htm:17]** | 4.4% **[0000049196-24-000076_hban-20240630.htm:20]** | 2.7% **[0000049196-24-000095_hban-20240930.htm:20]** |
| **EVE at Risk (%)** | -17.3% **[0000049196-23-000020_hban-20221231.htm:93]** | -8.4% **[0000049196-23-000044_hban-20230331.htm:18]** | -7.4% **[0000049196-23-000082_hban-20230630.htm:21]** | -6.7% **[0000049196-23-000097_hban-20230930.htm:23]** | -8.8% **[0000049196-24-000020_hban-20231231.htm:102]** | -9.4% **[0000049196-24-000047_hban-20240331.htm:17]** | -9.0% **[0000049196-24-000076_hban-20240630.htm:20]** | -9.2% **[0000049196-24-000095_hban-20240930.htm:20]** |
| **Amortized Cost of Loans Modified ($ million)** | N/A | 241 **[0000049196-23-000044_hban-20230331.htm:58]** | 297 **[0000049196-23-000082_hban-20230630.htm:64]** | 228 **[0000049196-23-000097_hban-20230930.htm:68]** | 705 **[0000049196-24-000020_hban-20231231.htm:174]** | 302 **[0000049196-24-000047_hban-20240331.htm:53]** | 415 **[0000049196-24-000076_hban-20240630.htm:58]** | 408 **[0000049196-24-000095_hban-20240930.htm:58]** |
| **Weighted-average Contractual Interest Rate Reduction (%)** | N/A | 7.60% **[0000049196-23-000044_hban-20230331.htm:59]** | N/A | 10.56% **[0000049196-23-000097_hban-20230930.htm:69]** | 8.62% **[0000049196-24-000020_hban-20231231.htm:174]** | 8.24% **[0000049196-24-000047_hban-20240331.htm:53]** | 8.46% **[0000049196-24-000076_hban-20240630.htm:58]** | 7.81% **[0000049196-24-000095_hban-20240930.htm:58]** |
| **Weighted-average Contractual Interest Rate Reduction (Lower Bound) (%)** | N/A | 6.80% **[0000049196-23-000044_hban-20230331.htm:59]** | N/A | 8.11% **[0000049196-23-000097_hban-20230930.htm:69]** | 8.05% **[0000049196-24-000020_hban-20231231.htm:174]** | 7.28% **[0000049196-24-000047_hban-20240331.htm:53]** | 8.21% **[0000049196-24-000076_hban-20240630.htm:58]** | 6.56% **[0000049196-24-000095_hban-20240930.htm:58]** |
| **Weighted-average Years Added to Loan Life** | N/A | 0.9 **[0000049196-23-000044_hban-20230331.htm:59]** | 0.7 **[0000049196-23-000082_hban-20230630.htm:64]** | 1.0 **[0000049196-23-000097_hban-20230930.htm:69]** | 1.0 **[0000049196-24-000020_hban-20231231.htm:174]** | 0.4 **[0000049196-24-000047_hban-20240331.htm:53]** | 0.7 **[0000049196-24-000076_hban-20240630.htm:58]** | 0.7 **[0000049196-24-000095_hban-20240930.htm:58]** |
| **Insured Deposits (%)** | 68% **[0000049196-23-000044_hban-20230331.htm:22]** | 69% **[0000049196-23-000044_hban-20230331.htm:22]** | 71% **[0000049196-23-000082_hban-20230630.htm:25]** | 70% **[0000049196-23-000097_hban-20230930.htm:27]** | 70% **[0000049196-24-000020_hban-20231231.htm:108]** | 70% **[0000049196-24-000047_hban-20240331.htm:21]** | 70% **[0000049196-24-000076_hban-20240630.htm:24]** | 69% **[0000049196-24-000095_hban-20240930.htm:24]** |
| **CRE Portfolio ($ billion)** | 16.6 **[0000049196-23-000020_hban-20221231.htm:156]** | 16.377 **[0000049196-23-000044_hban-20230331.htm:12]** | 13.166 **[0000049196-23-000082_hban-20230630.htm:15]** | 12.668 **[0000049196-23-000097_hban-20230930.htm:18]** | 12.4 **[0000049196-24-000020_hban-20231231.htm:92]** | 12.3 **[0000049196-24-000047_hban-20240331.htm:13]** | 11.9 **[0000049196-24-000076_hban-20240630.htm:15]** | 11.5 **[0000049196-24-000095_hban-20240930.htm:14]** |
| **Net Charge-Offs ($ million)** | N/A | 57 **[0000049196-23-000044_hban-20230331.htm:16]** | 49 **[0000049196-23-000082_hban-20230630.htm:17]** | 73 **[0000049196-23-000097_hban-20230930.htm:22]** | N/A | 92 **[0000049196-24-000047_hban-20240331.htm:15]** | 90 **[0000049196-24-000076_hban-20240630.htm:19]** | 93 **[0000049196-24-000095_hban-20240930.htm:19]** |
| **Nonperforming Assets ($ million)** | 594 **[0000049196-23-000020_hban-20221231.htm:89]** | 578 **[0000049196-23-000044_hban-20230331.htm:14]** | 557 **[0000049196-23-000082_hban-20230630.htm:17]** | 634 **[0000049196-23-000097_hban-20230930.htm:20]** | 711 **[0000049196-24-000020_hban-20231231.htm:96]** | 738 **[0000049196-24-000047_hban-20240331.htm:13]** | 780 **[0000049196-24-000076_hban-20240630.htm:16]** | 784 **[0000049196-24-000095_hban-20240930.htm:16]** |
| **Nonaccrual Loans and Leases ($ million)** | 569 **[0000049196-23-000020_hban-20221231.htm:156]** | 533 **[0000049196-23-000044_hban-20230331.htm:52]** | 510 **[0000049196-23-000082_hban-20230630.htm:17]** | 592 **[0000049196-23-000097_hban-20230930.htm:20]** | 667 **[0000049196-24-000020_hban-20231231.htm:96]** | 716 **[0000049196-24-000047_hban-20240331.htm:13]** | 733 **[0000049196-24-000076_hban-20240630.htm:16]** | 738 **[0000049196-24-000095_hban-20240930.htm:16]** |
| **Core Deposits ($ billion)** | 142.141 **[0000049196-23-000020_hban-20221231.htm:98]** | 140.419 **[0000049196-23-000044_hban-20230331.htm:22]** | 142.869 **[0000049196-23-000082_hban-20230630.htm:25]** | 144.206 **[0000049196-23-000097_hban-20230930.htm:27]** | 145.5 **[0000049196-24-000020_hban-20231231.htm:108]** | 147.3 **[0000049196-24-000047_hban-20240331.htm:20]** | 147.5 **[0000049196-24-000076_hban-20240630.htm:23]** | 151.3 **[0000049196-24-000095_hban-20240930.htm:23]** |
| **Non-core Deposits ($ billion)** | 5.553 **[0000049196-23-000020_hban-20221231.htm:98]** | 4.859 **[0000049196-23-000044_hban-20230331.htm:22]** | 5.159 **[0000049196-23-000082_hban-20230630.htm:25]** | 4.661 **[0000049196-23-000097_hban-20230930.htm:27]** | 5.8 **[0000049196-24-000020_hban-20231231.htm:108]** | 6.0 **[0000049196-24-000047_hban-20240331.htm:20]** | 6.9 **[0000049196-24-000076_hban-20240630.htm:23]** | 7.1 **[0000049196-24-000095_hban-20240930.htm:23]** |
| **Affordable Housing Tax Credit Investments ($ million)** | 2,891 **[0000049196-23-000020_hban-20221231.htm:196]** | 3,050 **[0000049196-23-000044_hban-20230331.htm:79]** | 3,142 **[0000049196-23-000082_hban-20230630.htm:89]** | 3,229 **[0000049196-23-000097_hban-20230930.htm:96]** | 3,335 **[0000049196-24-000020_hban-20231231.htm:212]** | 3,450 **[0000049196-24-000047_hban-20240331.htm:78]** | 3,579 **[0000049196-24-000076_hban-20240630.htm:85]** | 3,491 **[0000049196-24-000095_hban-20240930.htm:86]** |
| **Unfunded Commitments for Affordable Housing Tax Credit Investments ($ million)** | 1,260 **[0000049196-23-000020_hban-20221231.htm:196]** | 1,326 **[0000049196-23-000044_hban-20230331.htm:79]** | 1,304 **[0000049196-23-000082_hban-20230630.htm:89]** | 1,309 **[0000049196-23-000097_hban-20230930.htm:96]** | 1,279 **[0000049196-24-000020_hban-20231231.htm:212]** | 1,267 **[0000049196-24-000047_hban-20240331.htm:78]** | 1,184 **[0000049196-24-000076_hban-20240630.htm:85]** | 1,040 **[0000049196-24-000095_hban-20240930.htm:86]** |
| **Proportional Amortization Expense ($ million)** | N/A | 54 **[0000049196-23-000044_hban-20230331.htm:79]** | 54 **[0000049196-23-000082_hban-20230630.htm:89]** | 55 **[0000049196-23-000097_hban-20230930.htm:96]** | N/A | 63 **[0000049196-24-000047_hban-20240331.htm:78]** | 63 **[0000049196-24-000076_hban-20240630.htm:85]** | 63 **[0000049196-24-000095_hban-20240930.htm:86]** |
| **Loans Serviced for Third Parties ($ billion)** | 32.4 **[0000049196-23-000020_hban-20221231.htm:165]** | 32.5 **[0000049196-23-000044_hban-20230331.htm:21]** | 32.7 **[0000049196-23-000082_hban-20230630.htm:68]** | 33.0 **[0000049196-23-000097_hban-20230930.htm:73]** | 33.2 **[0000049196-24-000020_hban-20231231.htm:179]** | 33.3 **[0000049196-24-000047_hban-20240331.htm:56]** | 33.4 **[0000049196-24-000076_hban-20240630.htm:62]** | 33.565 **[0000049196-24-000095_hban-20240930.htm:62]** |
| **Available Contingent Borrowing Capacity ($ billion)** | 53.5 **[0000049196-24-000020_hban-20231231.htm:110]** | 51.1 **[0000049196-23-000044_hban-20230331.htm:23]** | 77.2 **[0000049196-23-000082_hban-20230630.htm:26]** | 79.9 **[0000049196-23-000097_hban-20230930.htm:28]** | 83.0 **[0000049196-24-000020_hban-20231231.htm:110]** | 81.9 **[0000049196-24-000047_hban-20240331.htm:22]** | 82.0 **[0000049196-24-000076_hban-20240630.htm:25]** | 82.2 **[0000049196-24-000095_hban-20240930.htm:25]** |
| **Capitalized MSRs ($ million)** | 494 **[0000049196-23-000020_hban-20221231.htm:96]** | 485 **[0000049196-23-000044_hban-20230331.htm:21]** | 505 **[0000049196-23-000082_hban-20230630.htm:24]** | 547 **[0000049196-23-000097_hban-20230930.htm:26]** | 515 **[0000049196-24-000020_hban-20231231.htm:106]** | 534 **[0000049196-24-000047_hban-20240331.htm:19]** | 543 **[0000049196-24-000076_hban-20240630.htm:22]** | 515 **[0000049196-24-000095_hban-20240930.htm:22]** |

2893a3a8999d082fc8ddf4294896775acd5513c4fbd57513612f77a7040e83dc

473b0d4300f7978b71c343b4ec76adfc09a6db880356df728d331e6edf602cfb

1. "Given that you have reduced your asset sensitivity by more than 50% since Q2, how would your net interest income and margin be impacted if interest rates do not decline as the forward curve suggests?"  **[HBAN_3402961_4]** 
2. "With the expectation that the merchant acquiring business will add approximately 1% to overall fee revenue growth next year, what challenges do you foresee in achieving this target, and how will you address potential competitive pressures?"  **[HBAN_3402961_5]** 
3. "Your projection for net interest income shows acceleration in 2025; can you provide more details on the factors driving this growth and how sensitive it is to rate movements?"  **[HBAN_3402961_5]** 
4. "As you accelerate loan growth, particularly in auto loans, how are you ensuring that credit quality remains strong, and what steps are you taking to mitigate risks in the event of a downturn?"  **[HBAN_3402961_1]** 
5. "With plans to increase the average duration of new securities purchases, how are you managing the potential risks associated with longer durations in a volatile interest rate environment?"  **[HBAN_3402961_4]** 

8d2fc46ec47babf2c009b835c8d4a4198727cc0b0d69d5e7c68cda809242117c

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

60e4aab72e210b77f3cc53c14077c8d42277ccede5f5ae734cabdb3bbcac695c

Consumer & Business Banking

- Payments and Cash Management

- Wealth and Asset Management

- Customer Deposit and Loan Fees

- Capital Markets and Advisory Fees

- Leasing Revenue

- Insurance Income

- Other Noninterest Income

- Net Revenue from Contracts

- Noninterest Income (Other GAAP)

- Total Noninterest Income

Commercial Banking

Treasury / Other

Huntington Consolidated

Total Revenue

8446bf1e3b6f098fe985a5ec53c15f4d03e7c5b28adb04bb46ac50c35296d46d

- Other banks and financial services companies such as savings and loans, credit unions, and finance and trust companies  **[0000049196-24-000020_hban-20231231.htm:9]** .
- Mortgage banking companies  **[0000049196-24-000020_hban-20231231.htm:9]** .
- Equipment and automobile financing companies, including captive automobile finance companies  **[0000049196-24-000020_hban-20231231.htm:9]** .
- Insurance companies  **[0000049196-24-000020_hban-20231231.htm:9]** .
- Mutual funds  **[0000049196-24-000020_hban-20231231.htm:9]** .
- Investment advisors  **[0000049196-24-000020_hban-20231231.htm:9]** .
- Brokerage firms  **[0000049196-24-000020_hban-20231231.htm:9]** .
- Non-bank lenders both within and outside of primary market areas  **[0000049196-24-000020_hban-20231231.htm:9]** .
- Financial Technology Companies, or FinTechs, providing nontraditional competition  **[0000049196-24-000020_hban-20231231.htm:9]** .

555c18556869b4e7ade89db5ec8a6196ea3179c1c86c6d19ef9e5626bfc8038a

960a650e8834f0028e52c3a68ef9a1ba58039470285faeb618a2c43b2661be41

**NII at Risk (%)**

**EVE at Risk (%)**

**Amortized Cost of Loans Modified ($ million)**

**Weighted-average Contractual Interest Rate Reduction (%)**

**Weighted-average Contractual Interest Rate Reduction (Lower Bound) (%)**

**Weighted-average Years Added to Loan Life**

**Insured Deposits (%)**

**CRE Portfolio ($ billion)**

**Net Charge-Offs ($ million)**

**Nonperforming Assets ($ million)**

**Nonaccrual Loans and Leases ($ million)**

**Core Deposits ($ billion)**

**Non-core Deposits ($ billion)**

**Affordable Housing Tax Credit Investments ($ million)**

**Unfunded Commitments for Affordable Housing Tax Credit Investments ($ million)**

**Proportional Amortization Expense ($ million)**

**Loans Serviced for Third Parties ($ billion)**

**Available Contingent Borrowing Capacity ($ billion)**

**Capitalized MSRs ($ million)**

e0e41f718dd9a69d1c8333ce375ee265ec82eaea5657175340c2df26307af8fe

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2025
- **Guidance**:
  1. **Loan Growth**: Expected to be approximately **4% to 5% year-over-year** in Q4 2024  **[HBAN_3402961_6]** .
  2. **Deposit Growth**: Expected to increase between **4% and 5% year-over-year** in Q4 2024  **[HBAN_3402961_6]** .
  3. **Net Interest Income (NII)**: Expected to be **flat to up 1% year-over-year** in Q4 2024, with growth resuming in 2025  **[HBAN_3402961_4]** **[HBAN_3402961_6]** .
  4. **Net Interest Margin (NIM)**: Sustained expansion expected into 2025  **[HBAN_3402961_9]** .
  5. **Core Fee Revenues**: Expected to grow **8% to 9% year-over-year** in Q4 2024  **[HBAN_3402961_6]** .
  6. **Core Expenses**: Expected to grow **3% year-over-year** in Q4 2024  **[HBAN_3402961_6]** .
  7. **Credit Quality**: Net charge-offs similar to Q3 2024  **[HBAN_3402961_6]** .
  8. **Tax Rate**: Expected between **18% and 19%** in Q4 2024  **[HBAN_3402961_6]** .
  9. **Capital Management**: CET1 ratio targeted at **9% to 10%**  **[HBAN_3402961_6]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Loan Growth**: Expected to accelerate, with a run rate of **4.7% annualized**  **[HBAN_3393635_2]** .
  2. **Deposit Growth**: Sustained growth trend, with a **7.9% cumulative increase** since the rate cycle start  **[HBAN_3393635_2]** .
  3. **Net Interest Income (NII)**: Expected to grow sequentially, with a Q2 increase of **$25 million**  **[HBAN_3393635_3]** .
  4. **Net Interest Margin (NIM)**: Expected to remain stable around **3%**  **[HBAN_3393635_3]** .
  5. **Fee Income**: Expected to grow **5% to 7%** for the full year  **[HBAN_3393635_19]** .
  6. **Core Expenses**: Expected to grow **4.5%** for the full year  **[HBAN_3393635_4]** .
  7. **Credit Quality**: Net charge-offs at **29 basis points** in Q2  **[HBAN_3393635_5]** .
  8. **Capital Management**: CET1 ratio targeted at **9% to 10%**  **[HBAN_3393635_4]** .
  9. **Economic Outlook**: Preparing for potential rate cuts by year-end  **[HBAN_3393635_3]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Loan Growth**: Expected between **3% and 5%** for the full year  **[HBAN_3380113_6]** .
  2. **Deposit Growth**: Expected between **2% and 4%**  **[HBAN_3380113_6]** .
  3. **Net Interest Income (NII)**: Expected between **down 2% to up 2%**  **[HBAN_3380113_6]** .
  4. **Net Interest Margin (NIM)**: Expected to be slightly lower  **[HBAN_3380113_6]** .
  5. **Core Noninterest Income Growth**: Expected **5% to 7%**  **[HBAN_3380113_6]** .
  6. **Core Expense Growth**: Expected **4.5%**  **[HBAN_3380113_6]** .
  7. **Net Charge-Offs**: Expected between **25 and 35 basis points**  **[HBAN_3380113_6]** .
  8. **Fee Income Growth**: Expected **5% to 7%**  **[HBAN_3380113_18]** .
  9. **Capital Management**: CET1 ratio targeted at **9% to 10%**  **[HBAN_3380113_5]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Loan Growth**: Expected between **3% and 5%**  **[HBAN_3370495_7]** .
  2. **Deposit Growth**: Expected between **2% and 4%**  **[HBAN_3370495_7]** .
  3. **Net Interest Income**: Expected between **down 2% to up 2%**  **[HBAN_3370495_7]** .
  4. **Noninterest Income**: Expected to increase **5% to 7%**  **[HBAN_3370495_7]** .
  5. **Core Expenses**: Expected to increase **4.5%**  **[HBAN_3370495_7]** .
  6. **Tax Rate**: Expected to be **19%**  **[HBAN_3370495_7]** .
  7. **Net Charge-Offs**: Expected between **25 and 35 basis points**  **[HBAN_3370495_7]** .
  8. **Net Interest Margin (NIM)**: Expected between **3% and 3.1%**  **[HBAN_3370495_5]** .
  9. **Capital Management**: CET1 ratio targeted at **9% to 10%**  **[HBAN_3370495_12]** .

cf304e988513ddba05327802b37dc47c55d4a69712e376ca6408de060ab1d46f

| Name                  | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                                                                                                                                                                   |
|-----------------------|--------------------------------------------------------------------------|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Stephen D. Steinour   | Chairman, President, and CEO                                             | January 14, 2009   | Stephen D. Steinour has served as the Chairman, President, and CEO of Huntington Bancshares Incorporated and as President and CEO of Huntington Bank since January 14, 2009. He has over 40 years of experience in the banking industry and serves on several boards, including Bath & Body Works, Inc.  **[0001308179-24-000070_lhban2024_def14a.htm:53]** **[0001308179-24-000070_lhban2024_def14a.htm:28]** **[0001308179-23-000101_lhban2023_def14a.htm:22]** .                                        |
| Amit Dhingra          | Executive Vice President, Chief Enterprise Payments Officer              | March 2024         | Amit Dhingra has served as Executive Vice President, Chief Enterprise Payments Officer at Huntington Bancshares Incorporated since March 2024. He previously held various leadership positions at Huntington, including Executive Vice President, Head of Enterprise Payments  **[0001308179-24-000070_lhban2024_def14a.htm:53]** .                                                                          |
| Marcy C. Hingst       | Senior Executive Vice President and General Counsel                      | October 2023       | Marcy C. Hingst has served as the Senior Executive Vice President and General Counsel of Huntington Bancshares Incorporated and the Huntington National Bank since October 2023. Her responsibilities also include leadership for Public Affairs, Corporate Insurance, and ESG  **[0001308179-24-000070_lhban2024_def14a.htm:53]** .                                                                           |
| Helga S. Houston      | Senior Executive Vice President and Chief Risk Officer                   | January 2012       | Helga S. Houston has served as Senior Executive Vice President and Chief Risk Officer at Huntington Bancshares Incorporated since January 2012. She previously worked at Bank of America, serving in various business and risk capacities  **[0001308179-24-000070_lhban2024_def14a.htm:53]** **[0001308179-23-000101_lhban2023_def14a.htm:48]** .                                                                                                           |
| Scott D. Kleinman     | Senior Executive Vice President and President of Commercial Banking      | July 1, 2022       | Scott D. Kleinman has served as Senior Executive Vice President and President of Commercial Banking at Huntington Bancshares Incorporated since July 1, 2022. He is responsible for Specialty Banking, Corporate Banking, Capital Markets, and Asset Finance  **[0001308179-24-000070_lhban2024_def14a.htm:53]** **[0001308179-23-000101_lhban2023_def14a.htm:48]** .                                                                                         |
| Kendall Kowalski      | Executive Vice President and Chief Information Officer                   | February 2014      | Kendall Kowalski has served as Executive Vice President and Chief Information Officer at Huntington Bancshares Incorporated since February 2014. Prior to joining Huntington, he was a Senior Vice President at JPMorgan Chase  **[0001308179-24-000070_lhban2024_def14a.htm:53]** .                                                                                                                         |
| Brendan Lawlor        | Executive Vice President and Chief Credit Officer                        | December 2023      | Brendan Lawlor has served as Executive Vice President and Chief Credit Officer at Huntington Bancshares Incorporated since December 2023. He previously held various executive positions at KeyBank  **[0001308179-24-000070_lhban2024_def14a.htm:55]** .                                                                                                                                                    |
| Prashant Nateri       | Executive Vice President and Chief Corporate Operations Officer          | March 2024         | Prashant Nateri has served as Executive Vice President and Chief Corporate Operations Officer at Huntington Bancshares Incorporated since March 2024. He previously held the role of Chief Transformation Officer  **[0001308179-24-000070_lhban2024_def14a.htm:55]** .                                                                                                                                       |
| Brant J. Standridge   | Senior Executive Vice President and President of Consumer and Regional Banking | April 2023         | Brant J. Standridge has served as Senior Executive Vice President and President of Consumer and Regional Banking at Huntington Bancshares Incorporated since April 2023. He previously served as Chief Retail Community Banking Officer for Truist Financial Corporation  **[0001308179-24-000070_lhban2024_def14a.htm:55]** **[0001308179-23-000101_lhban2023_def14a.htm:49]** .                                                                             |
| Rajeev Syal           | Senior Executive Vice President and Chief Human Resources Officer        | September 2015     | Rajeev Syal has served as Senior Executive Vice President and Chief Human Resources Officer at Huntington Bancshares Incorporated since September 2015. He has over 35 years of global financial services experience  **[0001308179-24-000070_lhban2024_def14a.htm:55]** **[0001308179-23-000101_lhban2023_def14a.htm:49]** .                                                                                                                                |
| Zachary J. Wasserman  | Chief Financial Officer and Senior Executive Vice President              | November 2019      | Zachary J. Wasserman has served as Chief Financial Officer and Senior Executive Vice President at Huntington Bancshares Incorporated since November 2019. He previously held senior financial roles at Visa, Inc. and American Express Company  **[0001308179-24-000070_lhban2024_def14a.htm:55]** **[0001308179-23-000101_lhban2023_def14a.htm:49]** .                                                                                                       |
| Donnell White         | Senior Vice President and Chief Diversity, Equity and Inclusion Officer  | October 2023       | Donnell White has served as Senior Vice President and Chief Diversity, Equity and Inclusion Officer at Huntington Bancshares Incorporated since October 2023. He previously held positions as Chief Diversity Officer and Director of Strategic Partnerships at TCF National Bank  **[0001308179-24-000070_lhban2024_def14a.htm:55]** .                                                                       |

d413e103d084935d71706dfd6dbcdc81b2d27fe33284972e2168a44aa8f24b2a

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | January 18, 2023  **[0000049196-24-000095_hban-20240930.htm:94]** **[0000049196-24-000095_hban-20240930.htm:29]**  |
| End Date/Duration        | December 31, 2024  **[0000049196-24-000095_hban-20240930.htm:94]** **[0000049196-24-000095_hban-20240930.htm:29]**  |
| Total additional amount  | **$1.0 billion**  **[0000049196-24-000095_hban-20240930.htm:94]** **[0000049196-24-000095_hban-20240930.htm:29]**  |
| Remaining authorization  | **$1.0 billion**  **[0000049196-24-000095_hban-20240930.htm:94]** **[0000049196-24-000095_hban-20240930.htm:29]**  |
| Details                  | The program is part of Huntington's capital management framework, aiming to balance dividends, share repurchases, and capital retention for growth. Due to economic conditions, active utilization is not expected through 2024.  **[0000049196-23-000044_hban-20230331.htm:29]** **[0000049196-23-000097_hban-20230930.htm:34]** **[0000049196-24-000020_hban-20231231.htm:119]** **[0000049196-24-000076_hban-20240630.htm:29]** **[0000049196-23-000020_hban-20221231.htm:106]**  |

08ad05c847a0deb147318dfb8d9d07248aa0fd61f4675bdf71a4552abfc7c086

**Quarterly guidance for Q1 2025:**
- **Average Loan Balances**: expected to grow by approximately 2%  **[HBAN_3412797_5]**  (no prior guidance)
- **Average Deposits**: expected to remain relatively stable  **[HBAN_3412797_5]**  (no prior guidance)
- **Net Interest Income (NII)**: expected to decline by approximately 2% to 3%  **[HBAN_3412797_5]**  (no prior guidance)
- **Fee Revenues**: expected to normalize to approximately $500 million  **[HBAN_3412797_5]**  (no prior guidance)
- **Expenses**: expected to decline by approximately 2%  **[HBAN_3412797_5]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Loan Growth**: expected to increase by 5% to 7%  **[HBAN_3412797_5]**  (no prior guidance)
- **Deposit Growth**: expected to increase by 3% to 5%  **[HBAN_3412797_5]**  (no prior guidance)
- **Net Interest Income (NII)**: expected to grow by 4% to 6%  **[HBAN_3412797_5]**  (no prior guidance)
- **Noninterest Income**: expected to grow by 4% to 6%  **[HBAN_3412797_5]**  (no prior guidance)
- **Expense Growth**: expected to grow by 3.5% to 4.5%  **[HBAN_3412797_5]**  (no prior guidance)
- **Net Charge-Offs**: expected to be between 25 and 35 basis points  **[HBAN_3412797_5]**  (no prior guidance)
- **Effective Tax Rate**: expected to be approximately 19%  **[HBAN_3412797_5]**  (no prior guidance)
- **Positive Operating Leverage**: expected  **[HBAN_3412797_5]**  (no prior guidance)

b729ecaef6b818db7d2acc4c69ba3eac92f4db578b2a9c1c6f325247a69e5e5e

HBAN’s Q4 shows a 50% YoY jump in loan pipelines and record asset finance, supporting 5–7% loan growth in 2025. Management foresees a ~3% NIM with stable NII despite rate uncertainties. However, the 2.5% SCB raises capital resiliency concerns.

776c388e17ac7760de630ca703eac7f2f926a834e7ee208a915acf3ec74f817e

| Name                        | Start Date         | End Date         | Reason for Change                              |
|-----------------------------|--------------------|------------------|-----------------------------------------------|
| PricewaterhouseCoopers LLP  | December 31, 2015  **[0001299933-14-001755_htm_50823.htm:1]**  | Present      | Current auditor.                          |
| Deloitte & Touche LLP       | N/A           | December 31, 2014  **[0001299933-14-001755_htm_50823.htm:1]**  | Result of a competitive bidding process.  **[0001299933-14-001755_htm_50823.htm:1]**  |

9ba318bb5ca6b3abef75d143dfe78efff5c44e8ed6435e9f2f849a154b01216d

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,968 million (down **62%** YoY)  **[0000049196-25-000006_hban20241231_8kex992.htm:12]** **[0000049196-24-000020_hban-20231231.htm:138]** **[0000049196-24-000020_hban-20231231.htm:221]**   
- Operating Income (EBIT): $669 million (up **171%** YoY)  **[0000049196-25-000006_hban20241231_8kex992.htm:12]** **[0000049196-24-000020_hban-20231231.htm:138]** **[0000049196-24-000020_hban-20231231.htm:221]**   
- Net Income: $530 million (up **118%** YoY)  **[0000049196-25-000006_hban20241231_8kex992.htm:12]** **[0000049196-24-000020_hban-20231231.htm:138]** **[0000049196-24-000020_hban-20231231.htm:221]**   
- EPS (Diluted): $0.34 (up **127%** YoY)  **[0000049196-25-000006_hban20241231_8kex992.htm:12]** **[0000049196-24-000020_hban-20231231.htm:138]** **[0000049196-24-000020_hban-20231231.htm:221]**   
- Interest Expense: $1,115 million (+8% YoY)  **[0000049196-25-000006_hban20241231_8kex992.htm:12]** **[0000049196-24-000020_hban-20231231.htm:138]** **[0000049196-24-000020_hban-20231231.htm:221]**   

4f46bcac4cc661fda9e44b407eec2b08d97e5d0df103416333c140f4aed3c793

c76fc949f589ffe8373f78308c7a2a8ffa8863049497e39c78166f9380c9f36f

1. **NII Guidance Confidence**  
   **Q:** How confident are you in NII guidance amid uncertainties?  
   **A:** Management expressed strong confidence in achieving the Net Interest Income (NII) growth within their projected range, despite uncertainties in trade, immigration, and tax policy. They believe they can manage Net Interest Margin (NIM) to remain approximately flat in 2025, even with varying interest rate scenarios from no cuts to up to **2 or 3** rate cuts.  **[HBAN_3412797_6]** 

2. **Loan Growth vs Deposit Growth**  
   **Q:** Why are loans growing faster than deposits in 2025?  
   **A:** Loans are projected to grow between **5% to 7%**, driven by both core and new initiatives, sustaining current run rates.  **[HBAN_3412797_7]**  Deposits are expected to grow **3% to 5%**, intentionally slower to manage the loan-to-deposit ratio, which ended Q4 at **79%**, allowing flexibility in deposit pricing and supporting NIM.  **[HBAN_3412797_7]** **[HBAN_3412797_10]** 

3. **Loan Yields on New Production**  
   **Q:** What are new loan yields versus existing yields?  
   **A:** New loans are being produced at yields consistent with overall spreads, supporting a stable NIM.  **[HBAN_3412797_8]**  The mix of fixed and variable rate loans is about **50/50**, aligning with movements in the yield curve.  **[HBAN_3412797_8]** **[HBAN_3412797_10]** 

4. **Capital and Share Buybacks**  
   **Q:** Will you resume share buybacks given capital levels?  
   **A:** With a Common Equity Tier 1 (CET1) ratio of **10.5%** and adjusted for Accumulated Other Comprehensive Income (AOCI) at **8.7%**, the bank aims to reach **9% to 10%** adjusted CET1 in the first half of 2025.  **[HBAN_3412797_9]**  Due to expected loan growth and capital needs, share repurchases are unlikely in the near term.  **[HBAN_3412797_9]** 

5. **Provisioning Outlook**  
   **Q:** Will you release or build loan loss reserves in 2025?  
   **A:** Management expects the Allowance for Credit Losses (ACL) coverage ratio to potentially decrease over time if the economy performs well, even as loan growth continues.  **[HBAN_3412797_20]**  The ACL ratio stood at **1.88%**, higher than the CECL day 1 ratio of **1.70%**.  **[HBAN_3412797_20]** 

6. **NIM Outlook**  
   **Q:** What's the NIM outlook for the full year 2025?  
   **A:** The bank expects Net Interest Margin (NIM) to remain approximately **3%**, flat throughout 2025.  **[HBAN_3412797_16]**  Factors include continued benefits from fixed asset repricing (about **10 basis points**), decreasing deposit costs, and modest impacts from hedging activities.  **[HBAN_3412797_16]** 

7. **Securities Repositioning**  
   **Q:** Will you do more securities repositioning?  
   **A:** They do not plan significant further repositioning.  **[HBAN_3412797_17]**  The recent sale of **$1 billion** in securities was tactical, optimizing capital and achieving a less than **2-year** payback.  **[HBAN_3412797_17]** 

8. **Investment Cycle**  
   **Q:** Where are you in your investment cycle?  
   **A:** The bank continues to invest in core markets, new geographies, and verticals, seeing significant momentum and returns.  **[HBAN_3412797_18]**  They are not at the end of the investment cycle and plan to pursue additional opportunities that make sense.  **[HBAN_3412797_18]** 

9. **Potential for M&A**  
   **Q:** Are you considering acquisitions?  
   **A:** While the priority is organic growth, they are open to mergers and acquisitions if opportunities align strategically.  **[HBAN_3412797_21]**  They have capacity for bolt-on acquisitions but remain focused on driving top-quartile organic growth.  **[HBAN_3412797_21]** 

10. **Borrower Sentiment**  
    **Q:** How is borrower sentiment affecting growth?  
    **A:** Borrowers are positive post-election, expecting growth in 2025 and beyond.  **[HBAN_3412797_14]**  This optimism led to record asset finance in Q4, reflecting increased investments and confidence.  **[HBAN_3412797_14]** 

11. **Fee Income Outlook**  
    **Q:** What's the outlook for fee income growth?  
    **A:** Management expects high single-digit to low double-digit growth in payments, wealth management, and capital markets fees over the long term.  **[HBAN_3412797_12]**  Fee strategies support the core business and are driven by both growth and deeper penetration.  **[HBAN_3412797_11]** **[HBAN_3412797_12]** 

12. **Stress Tests Participation**  
    **Q:** Will you participate in stress tests to adjust SCB?  
    **A:** With a Stress Capital Buffer (SCB) at the minimum **2.5%**, they do not plan to participate in voluntary stress tests this year.  **[HBAN_3412797_19]** 

13. **Regulatory Changes**  
    **Q:** How will new regulatory leadership affect you?  
    **A:** The new administration is expected to be pro-business, potentially leading to more stability, less uncertainty on liquidity and capital, and a constructive dialogue with regulators.  **[HBAN_3412797_15]** 

10169a2b73d244fd81312ac311c2813c9b9576902d69874e60526207925a5545

- **Credit quality remains strong with net charge-offs at 29 basis points**, and the outlook is positive, indicating continued strong credit performance.  **[HBAN_3393635_20]** **[HBAN_3393635_18]**
- **Fee income rebounded strongly, up 6% sequentially in the second quarter**, driven by capital markets, payments, and wealth management; the company expects to be at the upper end of its 5% to 7% fee income growth range.  **[HBAN_3393635_19]**
- **Deposit growth has outperformed peers**, providing flexibility to fund accelerating loan growth and to manage down beta; the company expects sustained deposit growth and is in a position of strength.  **[HBAN_3393635_8]**

03ea03d719ff5bc21c9fad3341ef2b3b174bd42136fea29a230a58c87e0bb059

- The company anticipates expense growth **higher than revenue growth**, acknowledging this could challenge operating leverage in the short term. Management admits that expenses are "**higher than we would want to have relative to revenue growth**" and that this was a "**contrarian**" view, potentially pressuring margins.  **[HBAN_3370495_21]**
- There is an increase in **criticized assets**, particularly in the commercial real estate portfolio, due to the impact of **higher short-term rates**. Management noted that "**criticized assets ratio increased quarter-over-quarter, with risk rating changes within commercial real estate being the largest component**."  **[HBAN_3370495_19]**
- **Net interest income** and **net interest margin** are expected to **trough in Q1**, with net interest income potentially decreasing further. Management indicated that they "**will probably see a level that is lower than Q4 by around the same amount that Q4 was lower than Q3**," suggesting continued pressure on earnings.  **[HBAN_3370495_16]**

72e176d02cff3d427bdf44b84463ad3785a5209dd098891596c6be401a86ae69

1. **NII and NIM Growth Outlook**  
   **Q:** Will NII and NIM accelerate through 2025?  
   **A:** Management expects sustained NIM expansion from Q4 2024 into 2025, driven by accelerating deposit betas and reduced hedge drag, leading to **record NII dollars in 2025**. They anticipate NIM above **3% in the second half of next year**, supported by robust loan growth of around **6% annually**.  **[HBAN_3402961_9]** **[HBAN_3402961_14]** 

2. **Loan Growth Momentum**  
   **Q:** Can you sustain strong loan growth into next year?  
   **A:** They are experiencing outstanding loan growth, currently at a **6% annualized pace**, with expectations to maintain this momentum into 2025.  **[HBAN_3402961_14]** **[HBAN_3402961_12]** 

3. **Deposit Growth Strategy**  
   **Q:** How are you managing deposit growth and costs?  
   **A:** Deposit growth has been significantly faster than the industry average, primarily from strong consumer deposits and growing commercial deposits. They plan to decelerate deposit growth, keeping balances relatively **flat in Q4 QoQ**, to leverage their position and drive funding costs lower.  **[HBAN_3402961_8]** **[HBAN_3402961_10]** 

4. **Sensitivity to Rate Cuts**  
   **Q:** How do potential rate cuts affect your NII outlook?  
   **A:** Fewer rate cuts would result in better NIM performance and higher NII dollars in the short term. While their forecast assumes a couple of rate cuts this quarter and five into next year, less reduction in rates would be **universally positive**.  **[HBAN_3402961_9]** 

5. **Expense Management and Operating Leverage**  
   **Q:** Should we expect expense growth to slow next year?  
   **A:** They aim to drive positive operating leverage in 2025, focusing on efficiency improvements while continuing to invest in growth. They do not intend to be in "harvest mode" but expect solid improvements in the efficiency ratio.  **[HBAN_3402961_15]** 

6. **Capital Growth and CRT Transactions**  
   **Q:** Will you continue using CRTs to grow capital?  
   **A:** Capital growth is primarily driven by core organic earnings and strong return on capital. Credit Risk Transfer (CRT) transactions are viewed as tactical and opportunistic; they may be used in the future but are not the main strategy for capital growth.  **[HBAN_3402961_17]** 

7. **Credit Quality in Auto Loans**  
   **Q:** Are you seeing any deterioration in auto loan credit?  
   **A:** They are not seeing broad deterioration; late-stage delinquencies and charge-offs remain within historical levels. The auto loan portfolio focuses on **prime and super-prime** credit, with disciplined underwriting practices.  **[HBAN_3402961_18]** 

8. **Revenue Outperformance**  
   **Q:** What drove revenues above expectations this quarter?  
   **A:** Capital markets performed better than anticipated, driven by strong execution and sustained performance in key areas. They expect another strong quarter with sequential growth in capital markets in Q4.  **[HBAN_3402961_16]** 

9. **Hedging Program Adjustments**  
   **Q:** Have you made changes to your hedging strategy?  
   **A:** They continue to dynamically manage asset sensitivity, significantly reducing it through actions like adding **$1 billion** in forward starting receivers, aiming to protect capital and stabilize NIM.  **[HBAN_3402961_19]** 

b852b310bebdc349a25feee1f7efe7ea7645f0e1bd69a7c5245f19d470b31010

- **Dependence on Interest Rate Cuts:** Huntington's net interest margin (NIM) and net interest income (NII) forecasts are heavily reliant on anticipated Federal Reserve rate cuts. If these cuts do not occur as expected, the bank's NIM and NII growth may be negatively impacted. As CFO Zachary Wasserman stated, "**our underlying forecast assumes a couple of rate cuts this quarter and then 5 into next year**"  **[HBAN_3402961_9]** .
- **Reducing Asset Sensitivity Amid Interest Rate Uncertainty:** The bank is significantly reducing its asset sensitivity through hedging strategies, including **$1 billion in forward starting receivers**. This reduction may limit the bank's ability to benefit if interest rates remain stable or rise, posing a risk if the interest rate environment does not align with their expectations  **[HBAN_3402961_19]** .
- **Potential Short-Term Pressure on Net Interest Margin:** The bank expects NIM to be "**a few basis points lower into the fourth quarter**," influenced by timing impacts before accelerating betas offset variable loan impacts. This suggests potential short-term pressures on NIM, which could affect earnings if not managed effectively  **[HBAN_3402961_9]** .

0c3ea9f7656774531a87df98f5daf379bc739bc1f4701e91ec79d0a2a7576f14

- **Strategic investments** in specialty verticals and expansion into new markets, such as the Carolinas, position HBAN to **outperform peers in loan growth**, capturing market share and driving revenue growth in **2024 and beyond**.  **[HBAN_3370495_10]** ,  **[HBAN_3370495_20]**
- HBAN maintains a disciplined **aggregate moderate to low risk appetite**, focusing on **high-return investments** and effectively managing expenses to support growth initiatives, which is expected to **accelerate earnings growth**.  **[HBAN_3370495_10]**
- HBAN has a **strong capital position**, with an adjusted CET1 ratio of **8.6%**, and plans to drive it into the **9%-10% operating range**, prioritizing **high-return loan growth**, with potential for future **capital return** to shareholders through share repurchases.  **[HBAN_3370495_12]**

5b758a607e998a0252472d46919a4c1f2a4407111b685d45fc2adf7d0c9c0db3

- The proposed debit card interchange reform could have an annualized impact of approximately **$90 million** on fee income, which is **not included in 2024 guidance**, representing a potential headwind.  **[HBAN_3380113_23]**
- **Net Interest Margin (NIM) outlook has been lowered** due to higher funding costs and a delay in expected rate cuts, leading to pressure on **Net Interest Income (NII)** guidance.  **[HBAN_3380113_11]**
- Declining **noninterest-bearing deposits**, particularly in the business and commercial segments, may increase funding costs and **pressure net interest margin**.  **[HBAN_3380113_13]**

f935cbfb533d4592d1397d931cca5b2f75becc8144b1e2a5ec7372d1463ce39a

- **Stress capital buffer at minimum level**: Huntington Bancshares' stressed capital buffer remains **at the minimum 2.5%**, and they do not plan to increase it. This may raise concerns about their ability to withstand potential economic stress, especially amid geopolitical volatility.  **[HBAN_3412797_19]**
- **Ongoing investments leading to net expense growth**: The company has made significant investments in regional expansions and new verticals, resulting in **net expense growth**. While they are focused on organic growth, these continuous investments could strain resources and impact profitability if expected returns do not materialize.  **[HBAN_3412797_21]**
- **Uncertainty regarding regulatory changes**: With the new administration and changes in regulatory leadership, there is uncertainty about potential regulatory adjustments. Huntington anticipates a more pro-business environment but acknowledges that if expected regulatory changes do not develop, it could pose challenges for the bank.  **[HBAN_3412797_15]**

2c1e7277fee9558b212f8da48a0d3eafff7005b497678a007b2d60e60f8e10bd

193b8e9670cc36c4e0b723aae5c6b70b397412482b8e3353c90ad60f4feedbb0

- **HBAN is experiencing strong loan growth across various segments**, including auto, distribution finance, and business banking, with expectations to accelerate growth over the course of 2024 and into 2025.  **[HBAN_3380113_14]**
- **The bank's expansion into new markets such as the Carolinas and Texas, along with new specialty verticals, is delivering promising results**, positioning HBAN to outperform peers in loan growth.  **[HBAN_3380113_14]**
- **HBAN has strong credit quality, with stable metrics and proactive management of exposure to riskier sectors** like office commercial real estate, reducing the office portfolio by $500 million over the past four quarters.  **[HBAN_3380113_19]**

916c1f4d639ee60af99c54b68f0d9bf040f86012b30cb5e808b854e2305af1a8

1. **Net Interest Income Guidance**  
   **Q:** Why has NII guidance changed despite similar rate cut assumptions?  
   **A:** Management explained that the **NIM outlook is slightly lower** due to expectations of a **longer pause before Fed rate reductions**, leading to **slightly higher deposit funding costs**.  **[HBAN_3380113_7]** **[HBAN_3380113_8]** **[HBAN_3380113_11]** **[HBAN_3380113_12]**  They now anticipate a few basis points of additional funding costs in 2024.  **[HBAN_3380113_7]**  Despite this, they expect **accelerating loan growth** to offset some pressures.  **[HBAN_3380113_8]** **[HBAN_3380113_11]**  They are confident in achieving their full-year NII guidance of **down 2% to up 2%**, aiming for the middle of the range.  **[HBAN_3380113_8]** **[HBAN_3380113_15]** **[HBAN_3380113_22]** 

2. **Loan Growth Outlook**  
   **Q:** What is driving the loan growth acceleration?  
   **A:** Management is confident in loan growth, expecting to be at the **upper end of their 3% to 5% guidance**.  **[HBAN_3380113_9]** **[HBAN_3380113_14]** **[HBAN_3380113_21]** **[HBAN_3380113_23]**  They cite a **robust commercial loan pipeline**, with each month showing improvement.  **[HBAN_3380113_9]** **[HBAN_3380113_14]**  About **60% of growth** is expected from core markets and **40% from new initiatives**, including expansions in the Carolinas and Texas.  **[HBAN_3380113_23]**  Early traction in these new areas is positive, with pipelines approaching **$2 billion** in loans.  **[HBAN_3380113_23]** 

3. **Deposit Trends and Pricing**  
   **Q:** How are deposit trends and pricing strategy evolving?  
   **A:** Deposit balances saw **modest declines in noninterest-bearing deposits** during the quarter.  **[HBAN_3380113_13]**  Management expects the **noninterest-bearing mix** to stabilize in the **high teens**, at **19.4%** as of Q1.  **[HBAN_3380113_13]**  The competitive environment remains consistent, and their **pricing strategy is to remain competitive but not lead the market**, focusing on **customer acquisition for deposit growth**.  **[HBAN_3380113_10]** 

4. **Credit Quality and Office CRE Exposure**  
   **Q:** Any concerns about credit quality, particularly in office CRE?  
   **A:** Management reports that **credit metrics remain strong**, in line with previous quarters.  **[HBAN_3380113_19]** **[HBAN_3380113_20]**  They acknowledge focus on office commercial real estate but note they have **one of the smaller books** and have **reduced the office portfolio by about $500 million** over the last 4 quarters.  **[HBAN_3380113_20]**  The largest loan is **$40 million** with an average of **$7 million**, indicating a **granular portfolio**.  **[HBAN_3380113_20]** 

5. **Fee Income Outlook**  
   **Q:** What is the outlook for fee income growth?  
   **A:** They expect fee income to **accelerate**, with guidance for full-year growth of **5% to 7%**, compared to **3% year-over-year growth** in Q1.  **[HBAN_3380113_18]** **[HBAN_3380113_19]**  Key drivers include **capital markets**, **payments** (payments revenue up **7%**), and **wealth management** (wealth revenue up **10%** in Q1).  **[HBAN_3380113_18]** 

6. **Allowance for Credit Losses**  
   **Q:** How are you thinking about reserving going forward?  
   **A:** Management notes that the **Allowance for Credit Losses (ACL) ratio is stable** and among the top of peers.  **[HBAN_3380113_21]**  They consider multiple factors like economic scenarios and loan growth, making it hard to predict ACL movements.  **[HBAN_3380113_21]**  They aim to be **conservative with reserves**, and if performance continues, there may be **reserve recapture** in the future.  **[HBAN_3380113_21]** 

7. **Debit Card Interchange Reform Impact**  
   **Q:** Any updates on potential debit interchange fee reform?  
   **A:** There is **no substantive update** on interchange reform.  **[HBAN_3380113_23]**  The proposed changes could have an **annualized impact of around $90 million**, but the outcome is uncertain.  **[HBAN_3380113_23]**  They expect the potential impact to be **mid to late 2025** and not included in 2024 guidance.  **[HBAN_3380113_23]** 

c21e777b6ae63eeb1570b49f4617e85feabb51068ca31b80f83752f311989d6b

- Huntington is experiencing robust loan growth, with pipelines **50% higher** this year compared to last, reflecting positive borrower sentiment and expectations for **2025 and beyond**.  **[HBAN_3412797_14]**
- The company achieved **record asset finance** in the fourth quarter, indicating unlocking of customer investments and increased financing activities, contributing to strong core growth.  **[HBAN_3412797_14]**
- Huntington prioritizes **top quartile organic growth**, having made significant investments leading to strong performance, and remains confident in future growth opportunities, focusing on organic growth over M&A.  **[HBAN_3412797_21]**

d1d49d104a3b75e2c3020f7455053d69d449c1043bac88329b064b6315fa37da

1. **Loan Growth Outlook**  
   **Q:** How will you achieve above-peer loan growth?  
   **A:** Huntington expects to outperform peers with loan growth in the **3–5%** range by leveraging strategic investments in specialty banking, expanding into markets like the Carolinas, and capitalizing on opportunities in TCF markets such as Chicago, Twin Cities, and Denver. The bank believes its disciplined approach, strong middle market core banking, and small business capabilities will drive this growth.  **[HBAN_3370495_10]**   **[HBAN_3370495_20]** 

2. **Net Interest Income and NIM Outlook**  
   **Q:** What is the outlook for NII and NIM?  
   **A:** NII is expected to trough in Q1 2024, declining similarly as in prior quarters, then grow from there. The NIM is likely to be lowest in Q1 and then rise. If rates stay higher for longer, NIM in 2024 could be about **10 basis points** higher compared to a scenario with Fed cuts. Over the longer term, the bank sees a sustainable NIM north of **3%** into the low 3s.  **[HBAN_3370495_16]**   **[HBAN_3370495_15]** 

3. **Expense Guidance Increase**  
   **Q:** Why did expense growth guidance increase to 4.5%?  
   **A:** The finalization of the budget reflects additional loan growth and associated revenues, resulting in expense growth guidance increasing from approximately **4% to 4.5%**, representing about **$5 million** per quarter. The underlying drivers remain unchanged, and the bank plans to manage expenses while continuing to invest in strategic growth initiatives.  **[HBAN_3370495_8]**   **[HBAN_3370495_17]** 

4. **Capital Return Plans**  
   **Q:** When will share repurchases resume?  
   **A:** Huntington aims to drive adjusted CET1 capital into the **9–10%** operating range. Until then, the priority is funding loan growth. Once within this range, the bank will reassess its posture on share repurchases, expecting to return to buybacks over time, as they are an important part of the value creation model.  **[HBAN_3370495_12]** 

5. **Deposit Beta and Rate Sensitivity**  
   **Q:** How are you managing deposit beta as rates change?  
   **A:** Deposit costs and beta are expected to decelerate. In a scenario where rates begin to fall in March with five cuts, Huntington expects about a **20%** down beta over a three-quarter period by the end of 2024. The bank is seeing initial signs of firms preparing for a down-rate environment.  **[HBAN_3370495_9]**   **[HBAN_3370495_11]** 

6. **Commercial Real Estate Credit Quality**  
   **Q:** What's the outlook for commercial real estate credit quality?  
   **A:** Commercial real estate net charge-offs increased to **$20 million** in the quarter, driven by three transactions, primarily in the office portfolio where potential loss exists. The bank has increased reserves to approximately **10%** for the office portfolio and views the overall portfolio as performing well due to disciplined portfolio management and a moderate to low-risk profile.  **[HBAN_3370495_18]** 

7. **Impact of Fiscal Stimulus**  
   **Q:** Is fiscal stimulus affecting your growth outlook?  
   **A:** Investment projects like the Intel plant in Columbus are underway, with supply chain commitments expected this year, strengthening the outlook in markets where Huntington has significant share. Such investments across the Midwest are expected to generate economic benefits for the industry and for Huntington.  **[HBAN_3370495_21]** 

8. **Need for Scale and M&A Outlook**  
   **Q:** How does Huntington view whole bank M&A?  
   **A:** Huntington believes in a focused, disciplined, and diversified approach, with no immediate need for whole bank M&A. While open to opportunities in the future, the bank does not anticipate such activity in 2024, choosing instead to focus on organic growth and leveraging existing business lines.  **[HBAN_3370495_13]** 

19a376d775eb342721793818d2c1bf92a32f5e37a11ac08e4883a9ab6d4709c0

- **Strong Revenue Growth Driven by Capital Markets and Fee Income**: Huntington Bancshares reported higher-than-expected revenues, primarily due to exceptional performance in capital markets, achieving a **12% year-over-year growth in fees**  **[HBAN_3402961_16]** . The company expects this positive momentum to continue, anticipating **sequential growth in capital markets** and sustained fee revenue growth into the next quarter and beyond  **[HBAN_3402961_16]** .
- **Dynamic Management of Asset Sensitivity and Positive NIM Outlook**: The bank is actively managing its balance sheet to reduce asset sensitivity, implementing strategies such as forward starting receivers. They expect to **continue NIM expansion throughout 2025**, leading to **record net interest income**  **[HBAN_3402961_19]** **[HBAN_3402961_9]** . Management indicated that fewer rate cuts would result in even better NIM performance and net interest income dollars  **[HBAN_3402961_9]** .
- **Enhancement of Fee Income through Merchant Acquiring Business**: By bringing merchant acquiring capabilities in-house, Huntington projects to add approximately **1% to overall fee revenue growth**  **[HBAN_3402961_13]** . The merchant acquiring revenue is expected to double from **$25 million to $50 million annually** next year, enhancing their payments revenue stream  **[HBAN_3402961_13]** .

4cee3d6bef634210121d2e1f54d28ff89e87635c85d4c442bbfd1b1d2f6845c5

1. **NII Outlook with Rate Cuts**  
   **Q:** Where will NII land if rates are cut twice this year?  
   **A:** We expect our NII trend to be in the **middle of our down 1% to down 4% range**, even if we get two rate cuts in September and December. Managing a flat NIM will depend on reducing interest-bearing costs and continued loan growth. Pipelines look strong, and we could see **upward bias on loan growth** from new initiatives.  **[HBAN_3393635_10]** 

2. **Managing Downside Deposit Beta**  
   **Q:** How are you managing deposit beta if rates decline?  
   **A:** We're already implementing our down beta playbook by reducing acquisition rates, shifting from time deposits to more money market accounts, and shortening CD durations. We expect a **mid- to high 20% down beta** over the first year. This approach allows us to benefit from rate reductions and manage deposit costs effectively.  **[HBAN_3393635_6]** 

3. **Asset Sensitivity Reduction**  
   **Q:** Will you benefit from lower rates given balance sheet changes?  
   **A:** Yes, we're strategically reducing asset sensitivity by increasing receive-fixed swaps and allowing pay-fixed swaps to expire, reducing sensitivity by about **one-third by mid-next year**. This positions us to benefit from falling rates while expecting stable NIM over the next several quarters.  **[HBAN_3393635_9]** 

4. **Loan Growth Visibility**  
   **Q:** How far out do you see loan growth trends?  
   **A:** Our pipelines extend a couple of quarters out, giving us some visibility through the fourth quarter. Customers are performing well, and as rates come down, we expect them to do even more business next year.  **[HBAN_3393635_17]** 

5. **Expense Growth Outlook**  
   **Q:** Will expense growth be lower in 2025?  
   **A:** Yes, we expect to see a **lower growth rate of expenses in 2025** compared to 2024. This year’s expense growth of **4.5%** was intentionally higher to invest in growth initiatives, but the pace will reduce as we enter 2025, maintaining a lower growth rate going forward.  **[HBAN_3393635_15]** 

6. **Credit Quality and Reserves**  
   **Q:** Are you seeing any credit issues or reserve changes?  
   **A:** Credit continues to perform very well, and the outlook is good. While there may be some issues in commercial real estate over the next couple of years, it's not a significant concern for us. Our allowance for credit losses remains adequate at **1.95%**, and we'll adjust reserves as stronger economic performance and solid credit trends continue.  **[HBAN_3393635_18]** **[HBAN_3393635_20]** 

7. **Fee Income Momentum**  
   **Q:** Can fee income growth continue at current pace?  
   **A:** We expect to land within our **5% to 7%** full-year fee income growth range. Strong performance in payments (up **5%** year-over-year), wealth management (revenues up **8%**), and capital markets will drive sequential growth in the second half.  **[HBAN_3393635_19]** 

8. **Auto Loan Portfolio Growth**  
   **Q:** Is increased auto loan production compensating for softer growth?  
   **A:** Our auto business is performing very well and is not being used as a buffer. We see it as a terrific opportunity due to some competitors pulling back. We expect to continue generating significant volume and growth with a **super-prime** portfolio that has very low defaults.  **[HBAN_3393635_12]** 

9. **Risk Transfers and Capital Optimization**  
   **Q:** What's the rationale behind recent risk transfer deals?  
   **A:** These transactions help with RWA and balance sheet optimization. Our recent deal reduced RWA by **$3 billion**, unlocked **17 bps of CET1**, and had an exceptionally low cost of capital at less than **3%**. This supports our goals of increasing CET1 and funding higher-return loans.  **[HBAN_3393635_16]** 

10. **Loan-to-Deposit Ratio and Deposit Mix**  
    **Q:** Will the loan-to-deposit ratio stay flat with loan growth?  
    **A:** We expect the loan-to-deposit ratio to drift slightly higher over time but remain within a set range. We're growing deposits similarly to loans, and any temporary differences won't significantly shift the ratio. We're also shifting from time deposits to money market accounts to manage down beta effectively.  **[HBAN_3393635_14]** 

b794d442e79d89e5b665cd4eaacfe9f4d483b80952746e563187da9f25b50aa2

- **Anticipated "sloppiness" in commercial real estate over the next couple of years** may impact credit quality, with the company acknowledging potential issues in this area.  **[HBAN_3393635_18]**
- The **competitive environment is leading to flat loan spreads**, which could pressure net interest margins and impact profitability.  **[HBAN_3393635_11]**
- The **Net Interest Income (NII) outlook could be pressured** if loan growth does not meet expectations or if economic factors worsen, potentially bringing NII to the lower end of the guidance range.  **[HBAN_3393635_10]**

909b72a5c863f4a9ba21e2a6b3a6ec728e4b12d645b5f134059721f0c885c145

Huntington Bancshares Inc (HBAN)

Financials