Huntington's Q3 Profit Jumps 22% on Strong NII, Fee Income

TL;DR

**Huntington is aggressively expanding through M&A, and the Q3 numbers show they're executing well, making HBANP a strong buy for growth-oriented investors.**

AI Summary

Huntington Bancshares Inc. reported a strong third quarter for 2025, with net income attributable to Huntington increasing by $112 million, or 22%, to $629 million, compared to $517 million in the year-ago quarter. Diluted earnings per common share rose by $0.08, or 24%, to $0.41. Net interest income grew by $155 million, or 11%, to $1.5 billion, primarily driven by a 15 basis point increase in the FTE Net Interest Margin (NIM) to 3.13% and a 6% increase in average earning assets. Noninterest income saw a significant jump of $105 million, or 20%, to $628 million, boosted by a $24 million gain from the sale of a portion of its trust and custody business. Total assets increased by $6.0 billion, or 3%, to $210.2 billion, largely due to a $7.9 billion, or 6%, rise in loans and leases. The company completed the acquisition of Veritex Holdings, Inc. for approximately $1.7 billion, issuing 107 million shares of common stock, and announced a definitive merger agreement with Cadence Bank, valued at approximately $7.4 billion, expected to close in Q1 2026. The provision for credit losses increased by $16 million, or 15%, to $122 million, reflecting a disciplined approach to credit quality despite an increase in the Allowance for Credit Losses (ACL) to $2.6 billion.

Why It Matters

This filing reveals Huntington's aggressive expansion strategy through significant acquisitions, notably Veritex and the pending Cadence merger, which will reshape its competitive landscape in the regional banking sector. For investors, the 22% net income growth and 24% EPS increase signal robust financial health and effective management in a dynamic economic environment. Employees and customers of Veritex and Cadence will experience integration challenges and opportunities, while the broader market will watch how Huntington digests these large acquisitions and leverages its expanded footprint against rivals like Truist and PNC. The increased provision for credit losses, while higher, is balanced by a growing ACL, suggesting prudent risk management in a period of rising consumer debt.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant M&A activity, specifically the completed Veritex acquisition for $1.7 billion and the pending Cadence Bank merger valued at $7.4 billion. While these offer growth, they introduce integration risks and potential dilution from issuing 107 million shares for Veritex and 2.475 shares for each Cadence share. The provision for credit losses increased by $16 million, or 15%, to $122 million, and the unemployment rate rose to 4.3%, indicating potential headwinds in credit quality.

Analyst Insight

Investors should closely monitor the integration progress of the Veritex and Cadence acquisitions, as successful execution will be key to realizing the projected synergies and market expansion. Given the strong Q3 performance and strategic growth initiatives, consider HBANP for long-term growth, but be aware of potential short-term volatility related to M&A integration and broader economic shifts impacting credit quality.

Financial Highlights

revenue

$2.151 billion

total Assets

$210.2 billion

net Income

$629 million

eps

$0.41

revenue Growth

+14%

Revenue Breakdown

Key Numbers

• $629 million — Net income attributable to Huntington (Increased 22% from $517 million in Q3 2024)
• $0.41 — Diluted EPS (Increased 24% from $0.33 in Q3 2024)
• $1.5 billion — Net interest income (Increased 11% from $1.351 billion in Q3 2024)
• 3.13% — FTE Net Interest Margin (NIM) (Increased 15 basis points from Q3 2024)
• $628 million — Noninterest income (Increased 20% from $523 million in Q3 2024)
• $122 million — Provision for credit losses (Increased 15% from $106 million in Q3 2024)
• $210.2 billion — Total assets (Increased 3% from $204.2 billion at December 31, 2024)
• $1.7 billion — Veritex acquisition consideration (Completed October 20, 2025)
• $7.4 billion — Cadence Bank acquisition consideration (Announced October 27, 2025, expected Q1 2026 close)
• 10.6% — CET1 risk-based capital ratio (Increased from 10.5% at December 31, 2024)

Key Players & Entities

• Huntington Bancshares Incorporated (company) — registrant and acquiring entity
• Veritex Holdings, Inc. (company) — acquired bank holding company
• Cadence Bank (company) — pending acquisition target
• The Huntington National Bank (company) — Huntington's wholly owned subsidiary bank
• Federal Reserve (regulator) — central bank that reduced federal funds rate
• $629 million (dollar_amount) — net income attributable to Huntington for Q3 2025
• $1.7 billion (dollar_amount) — total consideration for Veritex acquisition
• $7.4 billion (dollar_amount) — consideration for pending Cadence acquisition
• $1.5 billion (dollar_amount) — net interest income for Q3 2025
• $2.6 billion (dollar_amount) — Allowance for Credit Losses (ACL) at September 30, 2025

FAQ

Risk Factors

• Credit Risk Management [medium — financial]: The provision for credit losses increased by $16 million, or 15%, to $122 million, reflecting a disciplined approach to credit quality. The Allowance for Credit Losses (ACL) increased to $2.6 billion, indicating a proactive stance on potential loan defaults.
• Integration of Acquisitions [high — operational]: The company completed the acquisition of Veritex Holdings, Inc. for approximately $1.7 billion and announced a definitive merger agreement with Cadence Bank, valued at approximately $7.4 billion. Successful integration of these entities is critical for realizing synergies and managing operational complexities.
• Interest Rate Sensitivity [medium — market]: The Net Interest Margin (NIM) increased by 15 basis points to 3.13%, indicating a positive impact from current interest rate environments. However, future changes in interest rates could affect net interest income.
• Regulatory Compliance [medium — regulatory]: As a regional bank holding company, Huntington is subject to various banking regulations. Compliance risks, including those related to capital adequacy and consumer protection, are ongoing concerns.

Industry Context

The regional banking sector is characterized by consolidation and a focus on expanding market share through strategic acquisitions. Huntington's recent M&A activity, including the Veritex and Cadence Bank deals, reflects this trend. Banks are also navigating a dynamic interest rate environment and increasing regulatory scrutiny.

Regulatory Implications

The company's growth through acquisitions brings increased regulatory oversight. Maintaining strong capital ratios, such as the CET1 ratio of 10.6%, is crucial for compliance and investor confidence. Potential changes in banking regulations could impact future operations and profitability.

What Investors Should Do

1. Monitor integration progress of Veritex and Cadence Bank acquisitions.
2. Analyze the sustainability of Net Interest Margin (NIM) growth.
3. Assess the impact of increased provision for credit losses on future earnings.

Key Dates

• 2025-10-20: Completion of Veritex Holdings, Inc. acquisition — Adds approximately $1.7 billion in acquisition consideration and expands Huntington's presence, particularly in Texas.
• 2025-10-27: Announcement of merger agreement with Cadence Bank — A significant strategic move valued at approximately $7.4 billion, expected to close in Q1 2026, further consolidating the company's market position.

Glossary

FTE Net Interest Margin (NIM)

A measure of a bank's profitability from its lending and borrowing activities, adjusted to a full-time equivalent basis and a standardized tax rate. (Indicates the core profitability of Huntington's lending and deposit-taking operations, showing an increase to 3.13%.)

Allowance for Credit Losses (ACL)

A reserve set aside by a financial institution to cover potential loan defaults and uncollectible debts. (An increase to $2.6 billion suggests a cautious approach to credit quality and potential future loan losses.)

CET1 risk-based capital ratio

Common Equity Tier 1 (CET1) ratio measures a bank's core capital against its risk-weighted assets, indicating its ability to absorb losses. (An increase to 10.6% signifies improved capital strength and regulatory compliance.)

Noninterest income

Revenue generated by a bank from sources other than traditional interest income, such as fees, service charges, and trading gains. (A significant increase to $628 million, boosted by a $24 million gain from asset sales, highlights diversification of revenue streams.)

Year-Over-Year Comparison

Huntington Bancshares Inc. has demonstrated robust growth compared to the prior year. Net income attributable to Huntington surged by 22% to $629 million, with diluted EPS rising 24% to $0.41. Net interest income saw an 11% increase to $1.5 billion, supported by a higher Net Interest Margin (NIM) of 3.13%. Noninterest income also grew significantly by 20% to $628 million, partly due to a gain on asset sales. Total assets expanded by 3% to $210.2 billion, driven by loan growth. The company's capital position remains strong, with the CET1 ratio improving slightly to 10.6%.

Key Financial Figures

• $0.01 — k) HBANL NASDAQ Common Stock—Par Value $0.01 per Share HBAN NASDAQ Indicate by che
• $1.7 billion — n from the transaction of approximately $1.7 billion. As of September 30, 2025, Veritex had
• $12.8 billion — . As of September 30, 2025, Veritex had $12.8 billion in assets, including $9.6 billion in lo
• $9.6 billion — had $12.8 billion in assets, including $9.6 billion in loans, and $10.8 billion in deposits
• $10.8 billion — s, including $9.6 billion in loans, and $10.8 billion in deposits. Pending Acquisition of Ca
• $16.07 — Based on Huntington's closing price of $16.07 as of October 24, 2025, the considerati
• $7.4 billion — onsideration is valued at approximately $7.4 billion. Each outstanding share of 5.50% Series
• $53 billion — . As of September 30, 2025, Cadence had $53 billion in assets, including $37 billion in loa
• $37 billion — ce had $53 billion in assets, including $37 billion in loans, and $44 billion in deposits.
• $44 billion — ts, including $37 billion in loans, and $44 billion in deposits. The merger is expected to
• $629 m — rter of 2025, we reported net income of $629 million, or $0.41 per diluted common shar
• $0.41 — reported net income of $629 million, or $0.41 per diluted common share, compared with
• $517 m — per diluted common share, compared with $517 million, or $0.33 per diluted common shar
• $0.33 — n share, compared with $517 million, or $0.33 per diluted common share, in the year-a
• $1.5 billion — r-ago quarter. Net interest income was $1.5 billion for the third quarter of 2025, an incre

Filing Documents

• hban-20250930.htm (10-Q) — 6083KB
• hban20250930_10qex311.htm (EX-31.1) — 10KB
• hban20250930_10qex312.htm (EX-31.2) — 10KB
• hban20250930_10qex321.htm (EX-32.1) — 4KB
• hban20250930_10qex322.htm (EX-32.2) — 4KB
• hban-20250930_g1.jpg (GRAPHIC) — 386KB
• 0000049196-25-000079.txt ( ) — 28295KB
• hban-20250930.xsd (EX-101.SCH) — 79KB
• hban-20250930_cal.xml (EX-101.CAL) — 147KB
• hban-20250930_def.xml (EX-101.DEF) — 657KB
• hban-20250930_lab.xml (EX-101.LAB) — 1128KB
• hban-20250930_pre.xml (EX-101.PRE) — 907KB
• hban-20250930_htm.xml (XML) — 7595KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 39 Consolidated Balance Sheets at September 30, 2025 and December 31, 2024 39 Consolidated Statements of Income for the three and nine months ended September 30, 2025 and 2024 40 Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024 41 Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended September 30, 2025 and 2024 42 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 44 Notes to Unaudited Consolidated Financial Statements : 46 Note 1 - Basis of Presentation 46 Note 2 - Accounting Standards Update 46 Note 3 - Business Combinations 47 Note 4 - Investment Securities and Other Securities 48 Note 5 - Loans and Leases 52 Note 6 - Allowance for Credit Losses 60 Note 7 - Mortgage Loan Sales and Servicing Rights 61 Note 8 - Borrowings 62 Note 9 - Other Comprehensive Income 64 Note 10 - Shareholders' Equity 66 Note 11 - Earnings Per Share 67 Note 12 - Revenue from Contracts with Customers 68 Note 13 - Fair Value of Assets and Liabilities 69 Note 14 - Derivative Financial Instruments 77 Note 15 - Variable Interest Entities 82 Note 16 - Commitments and Contingent Liabilities 84 Note 17 - Segment Reporting 86

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 4 Introduction 5 Executive Overview 4 Discussion of Results of Operations 8 Risk Management: 15 Credit Risk 15 Market Risk 21 Liquidity Risk 24 Operational Risk 28 Compliance Risk 29 Capital 29 Business Segment Discussion 30 Additional Disclosures 34

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 88

Controls and Procedures

Item 4. Controls and Procedures 88

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 88

Risk Factors

Item 1A. Risk Factors 88

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 89

Other Information

Item 5. Other Information 89

Exhibits

Item 6. Exhibits 90

Signatures

Signatures 91 2 Huntington Bancshares Incorporated Table of Contents Glossary of Acronyms and Terms The following listing provides a comprehensive reference of common acronyms and terms used throughout the document: ACL Allowance for Credit Losses MBS Mortgage-Backed Securities AFS Available-for-Sale MD&A Management's Discussion and Analysis of Financial Condition and Results of Operations ALCO Asset-Liability Management Committee MSR Mortgage Servicing Right ALLL Allowance for Loan and Lease Losses NAICS North American Industry Classification System AOCI Accumulated Other Comprehensive Income (Loss) NALs Nonaccrual Loans ASC Accounting Standards Codification NCO Net Charge-off ASU Accounting Standards Update NII Net Interest Income AULC Allowance for Unfunded Lending Commitments NIM Net Interest Margin Basel III Refers to the final rule issued by the FRB and OCC and published in the Federal Register on October 11, 2013 NM Not Meaningful BHC Bank Holding Company NPAs Nonperforming Assets Board Board of Directors OCC Office of the Comptroller of the Currency Cadence Cadence Bank OCI Other Comprehensive Income (Loss) C&I Commercial and Industrial OLEM Other Loans Especially Mentioned CDS Credit Default Swap REIT Real Estate Investment Trust CECL Current Expected Credit Losses ROC Risk Oversight Committee CET1 Common Equity Tier 1 RV Recreational Vehicle CFPB Bureau of Consumer Financial Protection SBA Small Business Administration CLN Credit Linked Note SCB Stress Capital Buffer CME Chicago Mercantile Exchange SEC Securities and Exchange Commission CMO Collateralized Mortgage Obligations SOFR Secured Overnight Financing Rate CODM Chief Operating Decision Maker SPE Special Purpose Entity CRE Commercial Real Estate TBA To Be Announced DIF Deposit Insurance Fund U.S. United States of America Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act U.S. Treasury U.S. Department of the Treasury EOP End of Period Veritex

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION When we refer to "we," "our," "us," "Huntington," and "the Company" in this Quarterly Report on Form 10-Q (this "report"), we mean Huntington Bancshares Incorporated and our consolidated subsidiaries, unless the context indicates that we refer only to the parent company, Huntington Bancshares Incorporated. When we refer to the "Bank" in this report, we mean our only bank subsidiary, The Huntington National Bank, and its subsidiaries.

: Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations INTRODUCTION We are a multi-state diversified regional bank holding company organized under Maryland law in 1966 and headquartered in Columbus, Ohio. Through the Bank, we are committed to making people's lives better, helping businesses thrive, and strengthening the communities we serve, and we have been servicing the financial needs of our customers since 1866. Through our subsidiaries, we provide full-service commercial and consumer deposit, lending, and other banking and financial services. These include, but are not limited to, payments, mortgage banking, direct and indirect consumer financing, investment banking, capital markets, advisory, equipment financing, distribution finance, investment management, trust, brokerage, insurance, and other financial products and services. As of September 30, 2025, our 972 full-service branches and private client group offices are located in Ohio, Colorado, Florida, Illinois, Indiana, Kentucky, Michigan, Minnesota, North Carolina, Pennsylvania, South Carolina, West Virginia, and Wisconsin. We also maintain a local banking presence in Texas and conduct select financial services and other activities in other states. This MD&A provides information we believe necessary for understanding our financial condition, changes in financial condition, results of operations, and cash flows. This MD&A provides only material updates to the MD&A included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Annual Report on Form 10-K"), and therefore, should be read in conjunction with the 2024 Annual Report on Form 10-K. This MD&A should also be read in conjunction with the Unaudited Consolidated Financial Statements, Notes to Unaudited Consolidated Financial Statements, and other information contained in this report. In this MD&A we refer to FTE net interest income and FTE total revenue. These financial measures are

Selected Financial Data

Selected Financial Data Table 1 - Selected Quarterly and Year-to-Date Income Statement Data Three Months Ended Nine Months Ended (amounts in millions, except per share data) September 30, 2025 September 30, 2024 Change September 30, 2025 September 30, 2024 Change Amount Percent Amount Percent Interest income $ 2,600 $ 2,555 $ 45 2 % $ 7,645 $ 7,411 $ 234 3 % Interest expense 1,094 1,204 (110) (9) 3,246 3,461 (215) (6) Net interest income 1,506 1,351 155 11 4,399 3,950 449 11 Provision for credit losses 122 106 16 15 340 313 27 9 Net interest income after provision for credit losses 1,384 1,245 139 11 4,059 3,637 422 12 Noninterest income 628 523 105 20 1,593 1,481 112 8 Noninterest expense 1,246 1,130 116 10 3,595 3,384 211 6 Income before income taxes 766 638 128 20 2,057 1,734 323 19 Provision for income taxes 133 116 17 15 351 308 43 14 Income after income taxes 633 522 111 21 1,706 1,426 280 20 Income attributable to non-controlling interest 4 5 (1) (20) 14 16 (2) (13) Net income attributable to Huntington 629 517 112 22 1,692 1,410 282 20 Dividends on preferred shares 27 36 (9) (25) 81 107 (26) (24) Net income applicable to common shares $ 602 $ 481 $ 121 25 % $ 1,611 $ 1,303 $ 308 24 % Average common shares—basic 1,459 1,453 6 — % 1,457 1,451 6 — % Average common shares—diluted 1,485 1,477 8 1 1,483 1,475 8 1 Net income per common share—basic $ 0.41 $ 0.33 $ 0.08 24 $ 1.11 $ 0.90 $ 0.21 23 Net income per common share—diluted 0.41 0.33 0.08 24 1.09 0.88 0.21 24 Cash dividends declared per common share 0.155 0.155 — — 0.465 0.465 — — Return on average total assets 1.19 % 1.04 % 1.09 % 0.97 % Return on average common shareholders' equity 12.4 10.8 11.6 10.2 Return on average tangible common shareholders' equity (1) 17.8 16.2 16.9 15.5 Net interest margin (2) 3.13 2.98 3.12 3.00 Efficiency ratio (3) 57.4 59.4 58.4 61.2 Revenue and Net Interest Income—FTE (non-GAAP) Net interest income $ 1,506 $ 1,351 $ 155 11 % $ 4,399 $ 3,950 $ 44

View Full Filing

View this 10-Q filing on SEC EDGAR