Huntington Bancshares, Inc. - FXDFR PRF PERPETUAL USD 25 - Ser J

Solid Q3 execution + confidence in 2027 EPS growth target - Management highlighted “solid operating performance” despite a fluid macro/competitive environment. - 2027 outlook reaffirmed: EPS $1.75–$1.83 (trackable based on internal bridge), with ROTCE expected to rise into 17%–18% and tangible book value per share (TBVPS) to grow >10% from 2025; 2027 EPS expected to grow >20% vs. 2025. - Guidance bridge logic (to close the gap vs. consensus) emphasized cost synergies, share repurchases, fee/operating leverage, and stable credit—not reserve release.

NII/margin stability + strong fee engine - Net interest income (NII): ~$2.1B, up $18M (+0.9%) QoQ and 37% YoY. - NIM: 3.25%, up 4 bps QoQ; drivers included higher asset yields, lower fed cash, and liability optimization; partially offset by lower purchase accounting accretion and hedge drag. - Fee revenue: up >15% YoY (reported) and a diversified “capital-light” growth engine (treasury management penetration, cards/payment volumes, merchant services, wealth/net flows, and capital markets engagement). - Q4 outlook: management expects NIM ~flat and Q4 fee revenue ~$750M ± variability, implying ~31% full-year fee growth.

Balance sheet & deposit momentum, but with ongoing rate/competition pressure - Loan growth: period-end loans +1.1%; average loans -0.4% QoQ (mix/seasonality); growth led by C&I (corporate/specialty, asset finance, middle market), offset by weaker CRE, auto, and residential mortgages (and seasonal distribution finance declines). - Deposits: average deposits +$500M (+0.2%), period-end deposits roughly matching loan growth; PBRs up (consumer +4%, business +5%, commercial +7% YoY). - Cost of deposits: 190 bps, up 2 bps QoQ, but moderation vs. Q2; management is actively optimizing funding mix and relationship economics.