Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Q1 2025 Earnings Presentation
64 slides from Huntington Bancshares's earnings presentation, Apr 17, 2025
Slide 1: 2025 First Quarter Earnings Review
2025 First Quarter Earnings Review Welcome. The Huntington National Bank is Member FDIC. ®, Huntington® and Huntington. are federally registered service marks of Huntington Bancshares Incorporated. ©2025 Huntington Bancshares Incorporated.
Slide 2: Disclaimer
Disclaimer 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, goals, projections, and statements, which are not historical fa
Slide 3: Our Vision: People-First, Customer-Centered
Our Vision Key Guiding Attributes People-First, Customer-Centered
Slide 4: Key Messages
Key Messages Delivered on organic growth strategies with sustained momentum supported by 1 purposefully diversified customer base 2 Drove robust profit growth reflective of expanded net interest margin, higher fee revenues, and efficient expense management 3 Achieved strong credit performance throug
Slide 5: 1Q25 Strategic Highlights
1Q25 Strategic Highlights Loan Growth Deposit Growth Capital & Credit YoY (ADB) YoY (ADB) Liquidity Quality Adj. CET11 $8.9B $10.9B 8.9% NCO +7.3% +7.2% 2x Uninsured 0.26% Deposit Coverage • • • • • • • • • • •
Slide 6: Driving Sustained Profitability
Driving Sustained Profitability Total Revenue (FTE) Pre-Provision Net Revenue (PPNR) Building on Positive Momentum
Slide 7: 2025 First Quarter Financial Performance
2025 First Quarter Financial Performance Key Metrics Highlights • • • • • •
Slide 8: Loans and Leases | Balanced and Diversified Growth
Loans and Leases | Balanced and Diversified Growth Loan and Lease Balances (Average) Highlights • • - - - - - Loan and Lease Balances QoQ (Average) Quarterly Loan Growth (Average)
Slide 9: Deposits | Continued Sequential Growth
Deposits | Continued Sequential Growth Deposit Balances (Average) Highlights • • • - - - - Total Cost of Deposits Trend Deposit Trend (Average)
Slide 10: Delivering Sustained Net Interest Income Growth
Delivering Sustained Net Interest Income Growth Net Interest Income (FTE) and Net Interest Margin (NIM) Highlights NIM Rollforward • - - •
Slide 11: Securities Portfolio
Securities Portfolio Securities + Cash1 Average Highlights • • • • • • Securities Portfolio Composition (EOP)
Slide 12: Balance Sheet Hedging Program Overview
Balance Sheet Hedging Program Overview Hedging Program Profile – Effective Swaps1 Core Strategies Net Interest Income (NII) Impact in 12Mo Rate Ramp Scenarios Mgmt Strategy • •
Slide 13: Noninterest Income | Diversified Fee Revenues
Noninterest Income | Diversified Fee Revenues Total Adj. Noninterest Income2 Noninterest Income Trends By Category Noninterest Income vs. Prior Year
Slide 14: Strategic Fee Revenue Focus Areas | Payments
Strategic Fee Revenue Focus Areas | Payments Adjusted Non-Interest Income (LTM) Commercial Payment Revenues Credit Card Merchant Services Highlights Purchase Volumes1 New Account Acquisition • • • • •
Slide 15: Strategic Fee Revenue Focus Areas | Wealth Management
Strategic Fee Revenue Focus Areas | Wealth Management Adjusted Non-Interest Income (LTM) Wealth Management Fee Revenue ($M) Highlights • • • •
Slide 16: Strategic Fee Revenue Focus Areas | Capital Markets
Strategic Fee Revenue Focus Areas | Capital Markets Adjusted Non-Interest Income (LTM) Capital Markets & Advisory Fees Financial Risk Loan Highlights Management Revenue1 Syndication Revenue • • • • •
Slide 17: Noninterest Expense | Disciplined Expense Management
Noninterest Expense | Disciplined Expense Management Noninterest Expense (NIE) Highlights • - • • Adj. Noninterest Expense vs Prior Qtr. Efficiency Ratio
Slide 18: Capital Positioning | Robust Capital Generation
Capital Positioning | Robust Capital Generation CET1 Ratio Highlights • • • • • Adjusted CET1 Ratio Drivers Tangible Book Value (TBV) per Share +13% YoY
Slide 19: Asset Quality | Top Tier Credit Performance
Asset Quality | Top Tier Credit Performance Net Charge-off Ratio Allowance for Credit Losses (ACL)1
Slide 20: Asset Quality | Criticized and NPA Ratios
Asset Quality | Criticized and NPA Ratios Criticized Asset Ratio 5.0 0% 4.8 0% 4.6 0% 4.4 0% 4.2 0% 4.0 0% 3.8 0% 3.6 0% 3.4 0% 3.2 0% 3.0 0% NPA Ratio
Slide 21: 2025 Outlook
2025 Outlook FY25 vs. FY24 Guidance Commentary As of: 1/17/25 4/17/25
Slide 22: Positioned for Powerful Value Creation
Positioned for Powerful Value Creation 1 2 3 4 5 Culture, Purpose, Scaled and Multiple Revenue Position of Disciplined and Vision Diversified Growth Levers in Strength with Execution Driving Delivered with a Franchise Regional and Rigorous Risk Top Quartile Differentiated National Management Perform
Slide 23: Non-GAAP Reconciliation: PPNR
Non-GAAP Reconciliation Pre-Provision Net Revenue (PPNR) % Change ($ in millions) 1Q24 2Q24 3Q24 4Q24 1Q25 1Q25 vs. 1Q24
Slide 24: Non-GAAP Reconciliation: Average Tangible Common Equity, ROTCE
Non-GAAP Reconciliation Average Tangible Common Equity, ROTCE ($ in millions) 1Q24 2Q24 3Q24 4Q24 1Q25 ($ in millions) 1Q24 2Q24 3Q24 4Q24 4Q24
Slide 25: Non-GAAP Reconciliation: Adjusted Noninterest Expense, Efficiency
Non-GAAP Reconciliation Adjusted Noninterest Expense, Efficiency Efficiency Ratio ($ in millions) – Pre-tax 1Q24 2Q24 3Q24 4Q24 1Q25 Noninterest Expense ($ in millions) 1Q24 2Q24 3Q24 4Q24 1Q25
Slide 26: Non-GAAP Reconciliation: Common Equity Tier 1
Non-GAAP Reconciliation Common Equity Tier 1 (CET1) CET1 – AOCI Impact ($ in millions) 1Q24 2Q24 3Q24 4Q24 1Q25 CET1 – ACL Impact ($ in millions) 4Q24 1Q25
Slide 27: Non-GAAP Reconciliation: Tangible Common Equity, TBV per Share
Non-GAAP Reconciliation Tangible common equity ratio, Tangible book value per share Tangible Common Equity Ratio ($ in millions) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 TBV per Share (in millions, except per share amounts) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25
Slide 28: Appendix
Appendix (2 Huntington
Slide 29: Basis of Presentation
Basis of Presentation Use of Non-GAAP Financial Measures This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Huntington’s results of operations or financial position. Where non-GAAP financial measures are used, th
Slide 30: Basis of Presentation
Basis of Presentation Rounding Please note that columns of data in this document may not add due to rounding. Notable Items From time to time, revenue, expenses, or taxes are impacted by items judged by management to be outside of ordinary banking activities and/or by items that, while they may be a
Slide 31: Table of Contents
Table of Contents Balance Sheet 37 Credit and Capital 57
Slide 32: Accumulated Other Comprehensive Income Dollars
Accumulated Other Comprehensive Income Dollars AOCI Outlook1 Highlights • • Components of Fair Value (FV) Mark on Investment Securities (1Q25)
Slide 33: Driving Sustained Profitability
Driving Sustained Profitability Pre-Provision Net Revenue (PPNR) Return on Tangible Common Equity %
Slide 34: Estimated Preferred Dividends
Estimated Preferred Dividends ($ in millions) Actuals Projected2
Slide 35: Consumer and Business Banking Digital Metrics
Consumer and Business Banking Digital Metrics Digital Engagement Digital Originations
Slide 36: Mortgage Banking Noninterest Income Summary
Mortgage Banking Noninterest Income Summary Mortgage Banking Income (MBI) Total Production Mix2 $120 $100 $80 $60 $40 $20 $-
Slide 37: Balance Sheet
Balance Sheet (2 Huntington
Slide 38: Loans and Leases | Accelerated Loan Growth
Loans and Leases | Accelerated Loan Growth Commercial Average Loan and Lease Balances Highlights • • • • Consumer Average Loan and Lease Balances Highlights • •
Slide 39: Loan Yields | Benefiting From Fixed Rate Re-Pricing
Loan Yields | Benefiting From Fixed Rate Re-Pricing Loan Portfolio Composition Highlights (as of 1Q25) • • • Total Loan Yield Trend
Slide 40: Deposits | Non-Interest Bearing Deposit Trends
Deposits | Non-Interest Bearing (NIB) Deposit Trends Deposit Balance – End of Period (EOP) Deposit Balance - Average NIB Deposits (EOP) % of Total Deposits NIB Deposits (Avg.) % of Total Deposits
Slide 41: Commercial Real Estate (CRE) Overview
Commercial Real Estate (CRE) Overview CRE Loans as % of Total Loans1 Portfolio Characteristics • • • • • Loan Portfolio Composition (1Q25) CRE Diversification by Property Type (1Q25)
Slide 42: Commercial Real Estate – Office Portfolio Declining
Commercial Real Estate – Office Portfolio Declining CRE – Office Loan Balances – End of Period (EOP)
Slide 43: CRE | Low Concentration and Top Tier Reserve Coverage
CRE | Low Concentration and Top Tier Reserve Coverage CRE Reserve Ratio vs. CRE as % of Total Loans Includes U.S. Listed Banks over $50B in assets as of 12/31/20241 Top Quartile Concentration and Highest Reserve Coverage of Like-sized U.S. Regional Banks
Slide 44: Commercial Real Estate (CRE) – Multi Family Overview
Commercial Real Estate (CRE) – Multi Family Overview Management Approach Loan Portfolio Composition (1Q25) Key Portfolio Metrics • • • • Top 5 MSAs (1Q25)
Slide 45: Minimal Exposure to Leveraged Lending
Minimal Exposure to Leveraged Lending Loan Portfolio Composition Highlights • • • • • Industry Classification of Outstandings
Slide 46: High Quality, Granular Deposit Franchise
High Quality, Granular Deposit Franchise Leading Percent of Insured Deposits1
Slide 47: Diversified Sources of Liquidity
Diversified Sources of Liquidity Robust Level of Available Liquidity1 Highlights ($ in billions) • • Cash + Borrowing Capacity as a % of Uninsured Deposits(1)(2) Peer Median: 89%
Slide 48: Commercial Deposit Relationships Bolstered by Off Balance Sheet Liquidity
Commercial Deposit Relationships Bolstered by Off Balance Sheet Liquidity Management Solutions Commercial Off B/S Total Commercial Banking Segment Liquidity Overview • • • • • • Commercial Banking Segment Customer Deposits / Liquidity (EOP)
Slide 49: Auto – Production Trend
Auto – Production Trend Originations Vintage Performance1
Slide 50: Auto – Proven Track Record of Strategic Growth
Auto – Proven Track Record of Strategic Growth Optimize through the Cycle Calibrating production to balance growth and returns Scale and Expertise to Continuously Drive Shareholder Value
Slide 51: Auto | Strong Credit Performance Through the Cycle
Auto | Strong Credit Performance Through the Cycle Highlights Strong Credit Quality • • Deep Industry Expertise • Robust Customer Selection • • Extensive Industry Knowledge with Emphasis on Super-Prime Consumers
Slide 52: Vehicle Finance – Origination Trends
Vehicle Finance – Origination Trends Auto Loans RV and Marine
Slide 53: Residential Mortgage and Home Equity Origination Trends
Residential Mortgage and Home Equity Origination Trends Residential Mortgage Residential Mortgage Residential Mortgage Home Equity
Slide 54: Change in Common Shares Outstanding
Change in Common Shares Outstanding Share Count (In millions) 1Q25 4Q24 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23
Slide 55: Tangible Common Equity
Tangible Common Equity Tangible Common equity
Slide 56: Hedging Balance Update
Hedging Balance Update Hedging Balance Update (as of 3/31/2025)
Slide 57: Credit and Capital
Credit and Capital (2 Huntington
Slide 58: CCAR Stress Test Highlights | Top-tier Performance
CCAR Stress Test Highlights | Top-tier Performance CCAR Cumulative Loan Losses as a % of Average Total Loans1 CET1 Post-stress Minimum2 ACL as % of 2024 CCAR Modeled Losses1
Slide 59: CET1 Comparison versus Peers
CET1 Comparison versus Peers CET1 (Reported and Adjusted for ACL)1
Slide 60: Commercial Delinquencies
Commercial Delinquencies Commercial (30+ Days1) Commercial (90+ Days1)
Slide 61: Consumer Delinquencies
Consumer Delinquencies Consumer (30+ Days1) Consumer (90+ Days1)
Slide 62: Criticized Commercial Loan Analysis
Criticized Commercial Loan Analysis End of Period ($ in millions) 1Q25 4Q24 3Q24 2Q24 1Q24
Slide 63: Notes
Notes Slide 5: (1) AOCI adjustment aligned to the GSIB reporting requirement - exclusion of AOCI adjusted for cash flow hedges on loan portfolio Slide 8: (1) New initiatives include North and South Carolina, Texas, Fund Finance, Native American Financial Services, Mortgage Servicing, Financial Insti
Slide 64: Notes
Notes Slide 36: (1) End of Period (2) Total production includes saleable and portfolio production activity Slide 41: (1) Peer data as of 4Q24. Source: Company's 2024 Form 10-Q or Bank Call Report depending on data availability; includes all peers: CMA, CFG, FITB, KEY, MTB, PNC, RF, TFC, USB, and ZIO
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