Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — 2024 RBC Capital Markets Financial Institutions Conference
19 slides from Huntington Bancshares's conference presentation, Mar 6, 2024
Slide 1: 2024 RBC Capital Markets Financial Institutions Conference
Welcome.® 2024 RBC Capital Markets Financial Institutions Conference The Huntington National Bank is Member FDIC. ®, Huntington® and Huntington. Welcome.® are federally registered service marks of Huntington Bancshares Incorporated. ©2024 Huntington Bancshares Incorporated. March 6, 2024
Slide 2: Disclaimer: Caution Regarding Forward-Looking Statements
2024 RBC Capital Markets Financial Institutions Conference Disclaimer 2 CAUTION REGARDING FORWARD-LOOKING STATEMENTS The information contained or incorporated by reference in this presentation contains certain forward-looking statements, including, but not limited to, certain plans, expectations, go
Slide 3: Huntington: A Purpose-Driven Company
2024 RBC Capital Markets Financial Institutions Conference Huntington: A Purpose-Driven Company 3 OUR PURPOSE We make people’s lives better, help businesses thrive, and strengthen the communities we serve OUR VISION To be the leading People-First, Digitally Powered Bank Purpose and Vision Linked to
Slide 4: Key Messages
2024 RBC Capital Markets Financial Institutions Conference Key Messages Delivering high-quality loan growth, supported by core businesses and bolstered by investments in new markets and expertise2 Rigorously managing credit quality, supported by disciplined client selection, underwriting, and portfo
Slide 5: Operating from a Position of Strength
2024 RBC Capital Markets Financial Institutions Conference Operating from a Position of Strength 5 Data as of 4Q23 unless otherwise noted; Peers include CFG, CMA, FITB, KEY, MTB, PNC, RF, TFC, USB, ZION See reconciliations on slide 17 (ROTCE) and slide 18 (CET1) and notes on slide 19 Capital Adj. CE
Slide 6: Differentiated Loan Growth Outlook
2024 RBC Capital Markets Financial Institutions ConferenceNote: $ in billions unless otherwise noted Commercial portfolios drive majority of growth: Led by existing businesses including auto floorplan, regional / business banking, and distribution finance Bolstered by new expansion markets and
Slide 7: Seizing Opportunity in the Carolinas
2024 RBC Capital Markets Financial Institutions Conference Well-positioned to gain share in attractive, high-growth markets Seizing Opportunity in the Carolinas 7 Expect the Pace of Production to Increase Over the Course of 2024 5 regions staffed with experienced bankers Building on existing cov
Slide 8: Further Expanding Commercial Banking Presence in Texas
2024 RBC Capital Markets Financial Institutions Conference Further Expanding Commercial Banking Presence in Texas 8 Deploying Proven Commercial Expansion Playbook in Local Markets #1 SBA Lender(3) #1 Projected Population Growth(1) $6B HBAN Loans at 12/31/23 #2 GDP Ranking Nationally(2) Increasing Re
Slide 9: Drivers of Net Interest Income
2024 RBC Capital Markets Financial Institutions Conference 9 Drivers of Net Interest Income Expect sequential increases, with growth rate accelerating throughout 2024 Broad-based organic growth opportunities, focused on funding strong returns Fixed Asset Repricing Opportunity: ~$13 – 15B fixed
Slide 10: Growing Core Deposit Base and Managing Liquidity
2024 RBC Capital Markets Financial Institutions Conference Peer 1 Peer 2 Peer 3 Peer 4Peer 5 Peer 6 Peer 7 -25 -20 -15 -10 -5 0 5 20 25 30 35 40 45 50 De po sit G ro w th (% ) Deposit Beta (%) Growing Core Deposit Base and Managing Liquidity 10 Core balances represented majority of net growth sinc
Slide 11: Disciplined Credit Culture Supports Through the Cycle Outperformance
2024 RBC Capital Markets Financial Institutions Conference 0.12% 0.07% 0.03% 0.15% 0.17% 0.19% 0.16% 0.24% 0.31%0.14% 0.15% 0.16% 0.19% 0.22% 0.25% 0.31% 0.35% 0.38% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 HBAN Peer Median 1.70% 2.17% 2.09% 2.01% 1.89% 1.87% 1.87% 1.89% 1.90% 1.90% 1.93% 1.96%
Slide 12: Low CRE Concentration and Top Tier Reserve Coverage
2024 RBC Capital Markets Financial Institutions Conference Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6 Bank 7 Bank 8 HBAN Bank 9 Bank 10 Bank 19 Bank 11 Bank 12 Bank 13 Bank 14 Bank 18 Bank 15 Bank 16 Bank 17 Bank 20 Bank 21 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 0% 10% 20% 30% 40% 50% 60%
Slide 13: 2024 Management Focus
2024 RBC Capital Markets Financial Institutions Conference 13 Dynamically operate through the interest rate environment with an active hedging program Execute proactive measures to stay ahead of evolving industry requirements 2024 Management Focus Operate from Position of Strength Strategically
Slide 14: Appendix
Appendix Welcome:
Slide 15: Commercial Real Estate (CRE) Overview
2024 RBC Capital Markets Financial Institutions Conference 9% 9% 10% 11% 14% 15% 16% 20% 23% 25% 36% Peer 1 Peer 2 HBAN Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Well diversified portfolio with rigorous client selection CRE reserve coverage 4.2% vs peer median of 2%(1) Office re
Slide 16: Commercial Real Estate (CRE) – Multi Family Overview
2024 RBC Capital Markets Financial Institutions Conference Commercial Real Estate (CRE) – Multi Family Overview Strategically Diversified Portfolio and Focused on Owner Operators 16 Top 5 MSAs (4Q23) Sponsor-driven strategy focused on experienced owners and operators Key Portfolio Metrics Loan Por
Slide 17: Non-GAAP Reconciliation: Average Tangible Common Equity, ROTCE
2024 RBC Capital Markets Financial Institutions Conference Non-GAAP Reconciliation Average Tangible Common Equity, ROTCE ($ in millions) FY 2023 Average common shareholders’ equity $16,217 Less: intangible assets and goodwill 5,731 Add: net tax effect of intangible assets 35 Average tangible common
Slide 18: Non-GAAP Reconciliation: Common Equity Tier 1 (CET1)
2024 RBC Capital Markets Financial Institutions Conference 18 Non-GAAP Reconciliation Common Equity Tier 1 (CET1) CET1 – AOCI Impact ($ in millions) 4Q23 Common Equity Tier 1 (A) $14,212 Add: accumulated other Comprehensive income (loss) (AOCI) (2,676) Less: cash flow hedge (363) Adjusted Common Equ
Slide 19: Notes
2024 RBC Capital Markets Financial Institutions Conference Notes 19 Slide 5: (1) AOCI adjustment aligned to the GSIB reporting requirement - exclusion of AOCI adjusted for cash flow hedges on loan portfolio (2) Average deposit growth 4Q21-4Q23. Source: S&P Global Market Intelligence and filings - Pe
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