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    HBAN
    Earnings call· Dec 2025(Q4 FY25)

    HUNTINGTON BANCSHARES INC /MD/ HBAN

    Jan 22, 2026 Source

    Executive summary

    Huntington Bancshares Q4 FY25 — Strong Organic Growth and Strategic Partnerships Drive Outperformance

    Huntington Bancshares delivered exceptional Q4 FY25 results, marked by robust organic loan and deposit growth, expanding fee revenues, and strong operating leverage. The company's strategic partnerships with Veritex and Cadence are progressing rapidly, with Veritex integration substantially complete and Cadence systems migration expected midyear. Management emphasizes a sustainable growth model driven by continuous investment in digital capabilities, marketing, and talent, positioning the bank for continued outperformance and shareholder value creation.

    Highlights

    5

    • 11% revenue growth and 16% adjusted EPS growth in FY25, driving 290 basis points of positive operating leverage.

    • Average loans grew 14.4% YoY, with organic growth of $10.1 billion in FY25, exceeding $9.5 billion from the Veritex partnership.

    • Average deposits increased 8.6% YoY, with core deposits up 3.4% YoY (excluding Veritex), maintaining a 35% cycle-to-date down beta.

    • Fee income businesses grew at a steady high single-digit CAGR since 2023, with payments up 5% YoY, wealth management up 10% YoY (16% adjusted), and capital markets delivering its second strongest quarter.

    • Adjusted ROTCE increased by 40 basis points in FY25, tangible book value grew 19% YoY, and the company plans to initiate programmatic share repurchases of $50 million per quarter in 2026.

    Concerns

    2

    • The criticized asset ratio rose to 4.2% primarily due to Veritex's commercial real estate loans, though it remains within the historical range.

    • Equipment leasing and residential real estate balances saw declines of $200 million each in Q4, with RV/Marine loans seasonally declining by $100 million.

    Guidance & targets

    22
    CategoryTargetConfidence
    Net interest income growth
    10% to 13%
    high materiality
    High
    Loan growth
    11% to 12%
    high materiality
    High
    Deposit growth
    8% to 9%
    high materiality
    High
    Net interest margin expansion
    further expansion
    high materiality
    High
    Net interest income contribution from Cadence
    $1.85 billion to $1.9 billion
    high materiality
    Medium
    Fee revenue growth
    13% to 16%
    high materiality
    High
    Fee revenue contribution from Cadence
    $300 million
    medium materiality
    Medium
    Core expenses growth
    10% to 11%
    high materiality
    High
    Operating leverage
    150 to 200 basis points
    high materiality
    High
    Cadence expense increase
    $1.1 billion
    high materiality
    High
    Net charge-offs
    25 to 35 basis points
    medium materiality
    High
    Effective tax rate
    19% to 20%
    medium materiality
    High
    Fully diluted average share count
    approximately 2.020 billion shares
    medium materiality
    High
    Weighted average share count
    approximately 1.9 billion shares
    medium materiality
    High
    Programmatic share repurchases
    $50 million per quarter
    high materiality
    High
    Efficiency ratio
    around 55%
    high materiality
    High
    Underlying Huntington expense growth
    mid-single digits
    medium materiality
    High
    Underlying organic EPS growth
    mid- to high teens
    high materiality
    High
    EPS impact from full run rate cost synergies (Cadence)
    approximately $0.10
    high materiality
    High
    Investment growth into the business
    around 20%
    medium materiality
    High
    NIM PAA embedded in NII guide
    7 to 10 basis points
    medium materiality
    Medium
    Deposit growth vs. loan growth
    loans grow faster than deposits in Q1; deposits consistent with loan growth in Q2, Q3, Q4
    medium materiality
    High

    Operational metrics

    29
    Adjusted EPS growth
    16%YoY
    FY25

    Adjusted EPS growth for the full year.

    Positive operating leverage
    290
    FY25

    Adjusted operating leverage for the full year.

    Primary bank relationships growth
    4%YoY
    Q4 FY25

    Year-over-year growth in primary bank relationships.

    Primary bank relationships growth
    7%YoY
    Q4 FY25

    Year-over-year growth in primary bank relationships.

    Organic loan growth
    $10.1 billion
    FY25

    Total organic loan growth for the full year.

    Loan growth from new initiatives
    $1.8 billion
    Q4 FY25

    Contributed nearly half of the total organic loan growth for the year.

    Loan growth from core
    $1.4 billion
    Q4 FY25

    Breakdown of loan growth from core businesses in Q4.

    Equipment leasing decline
    $200 milliondecline
    Q4 FY25

    Offsetting loan gains.

    Residential real estate balances decline
    $200 milliondecline
    Q4 FY25

    Offsetting loan gains.

    RV/Marine loans seasonal decline
    $100 milliondecline
    Q4 FY25

    Seasonal decline, offsetting loan gains.

    Core deposits growth (excluding Veritex)
    $5.5 billionup 3.4% YoY
    Q4 FY25

    On an end-of-period basis, excluding Veritex.

    Deposit down beta
    35%cycle-to-date
    Q4 FY25

    Maintained disciplined pricing throughout the rate cycle.

    Deposit down beta (last 2 weeks of Q4)
    40%
    Q4 FY25

    Quickly implemented actions after Fed rate reduction.

    Net interest income sequential growth
    $86 million5.6% sequential growth
    Q4 FY25

    Sequential growth in net interest income.

    Net interest income year-over-year growth
    >14%YoY
    Q4 FY25

    Year-over-year growth in net interest income.

    Payments revenue growth
    5%YoY
    Q4 FY25

    Year-over-year growth.

    Commercial payment revenues growth
    8%YoY
    Q4 FY25

    Primary engine of payments growth.

    Wealth management revenue growth
    10%YoY
    Q4 FY25

    Powered by continued household acquisition and assets under management net inflows.

    Loan and deposit fees growth
    >20%
    Q4 FY25

    Driven by strong loan commitment fees.

    Fee income businesses CAGR
    high single-digit
    since 2023

    Sustainable over long-term planning horizon.

    Operating expenses sequential growth (core)
    $7 millionup 0.5% sequentially
    Q4 FY25

    Excluding onetime costs and the impact of absorbing Veritex's expense base.

    Adjusted ROTCE growth
    40
    FY25

    Through robust PPNR expansion while simultaneously increasing capital base.

    Tangible book value growth
    19%YoY
    FY25

    Year-over-year growth.

    Earnings returned through dividends
    40%
    FY25

    Percentage of earnings returned through dividends.

    Share repurchases capacity
    $50 millionper quarter
    2026

    Expected capacity for repurchases following Cadence close.

    Underlying loan momentum
    8% to 9%
    2025

    Underlying loan momentum for the year.

    Marginal efficiency ratio (Cadence)
    50%
    FY26

    Marginal profitability added by Cadence, even before full cost synergies.

    Veritex conversion time
    187
    since announcement

    Time taken for Veritex integration and conversion.

    New branches in Carolinas
    almost every 2 weeks
    2026

    Expectation for branch openings in 2026.

    Industry KPIs

    11
    MetricValueDetails
    Loansup 14.4%%
    Depositsup 8.6%%
    Rotce ROE40bps
    Cet1 ratiohigher
    Capital returns40%%
    Fee income lineshigh single-digitCAGR
    Net interest income$1.62 billionUSD
    Net interest margin3.15%%
    Net charge offs npls24bps
    Total operating expenses$4.871 billionUSD
    Efficiency ratio operating leverage290bps

    Deals & partnerships

    5
    VeritexStrategic partnership and integration

    Integration substantially completed in 187 days since announcement. Teams are performing exceptionally well together.

    CadenceStrategic partnership and integration

    Systems migration expected midyear. Talent decisions and organizational structure finalized and communicated. Teams are performing exceptionally well together.

    TM CapitalExpansion of capital markets capabilities

    Added at year-end 2025.

    Janney Capital MarketsExpansion of capital markets capabilities

    Added at year-end 2025.

    Various fintech companiesIntegrated partnerships to deliver new fintech solutions

    For consumer and small business customers. Part of continued investment in industry-leading digital capabilities.

    Risks & headwinds

    2
    Criticized asset ratio increaseQ4 FY25

    rose to 4.2%

    Mitigation: Primarily due to Veritex's commercial real estate loans, but remains within historical range.

    Commercial real estate construction exposure

    a little more commercial real estate construction than we would prefer

    Mitigation: Will manage in due course; great growth areas will offset any actions on the construction side.

    What to watch in Q1 FY26

    5

    Cadence systems migration completion

    midyear
    Currentalready advanced in our product and data mapping
    Targetsystems migration to occur midyear

    Why it matters

    Successful and timely migration is key to realizing full cost and revenue synergies from the Cadence partnership.

    For Cadence, we're already advanced in our product and data mapping and expect systems migration to occur midyear.

    Q&A highlights

    6

    Clarification on expense guidance, including baseline, Cadence addition, and cost savings. Also, how the 'partnership' approach generates goodwill for revenue and cost synergies compared to traditional acquisitions.

    Zach clarified that underlying Huntington expense growth is mid-single digits, aiming for 1.5-2 points of operating leverage. The 10-11% growth includes Veritex and new capital markets businesses. Cadence adds $1.1 billion in expenses, with 75% of cost synergies accruing in 2026. Steve and Brant emphasized that the partnership approach allows for faster, more rigorous decision-making on talent and organizational structure, creating certainty for new colleagues and enabling quicker realization of cost and revenue synergies.

    “One of the things that partnership has allowed us to do is to really move with greater speed and rigor on some of the key decisions.”

    asked by L. Erika Penala · answered by Zachary Wasserman

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Vision and Operating Model

    Huntington Bancshares is celebrating its 160th anniversary, driven by a vision to be the leading people-first, customer-centered bank. The company's differentiated operating model, combining local delivery with national capabilities, has created a "flywheel of value creation," driving sustainable high growth and enabling accelerated reinvestment. This model delivered 11% revenue growth, 16% adjusted EPS growth, and 290 basis points of positive operating leverage in FY25.

    02

    Partnership Integration Success

    The company's collaborative approach to partnerships, exemplified by Veritex and Cadence, focuses on speed, rigor, and talent retention. The Veritex integration was substantially completed in 187 days, with cost synergies already being realized. For Cadence, talent decisions are finalized, and systems migration is expected midyear, with cost benefits starting immediately post-close and full run rate by Q4. This expedited integration minimizes disruption and accelerates revenue synergy realization.

    03

    Organic Growth Engine

    Huntington demonstrated exceptional organic growth in FY25, with $10.1 billion in organic loan growth and $5.5 billion in core deposit growth (excluding Veritex). This performance reflects strong execution across consumer and commercial segments, with primary bank relationships up 4% in Consumer and 7% in Business Banking. Strategic investments in branch build-out, commercial verticals, and fintech solutions are fueling this growth.

    04

    Fee Income Momentum

    Fee businesses, particularly payments, wealth management, and capital markets, are showing strong momentum. Payments grew 5% YoY (commercial payments up 8%), wealth management grew 10% YoY (16% adjusted), and capital markets had its second strongest revenue quarter. The company expects continued high single-digit CAGR for fee income, driven by value-added services and new capital markets teams.

    05

    Capital Management and Shareholder Returns

    Huntington's capital management prioritizes high-return loan growth and a strong dividend yield. The adjusted CET1 ratio increased, and the company aims for the midpoint of its 9-10% operating range. Programmatic share repurchases of $50 million per quarter are planned for 2026, following the Cadence close, demonstrating a commitment to returning capital while investing for future growth.

    AI-generated summary of the company’s earnings call. Not investment advice.