Huntington Bancshares, Inc. - PRF PERPETUAL USD - Ser I 1/1000th Int

Q1 performance: strong profitability driven by both core + new partnerships - Adjusted EPS: $0.37 (+9% YoY); reported EPS: $0.25 - Adjusted PPNR: +36% YoY - Adjusted Tangible Book Value (TBV): +9% YoY - ROTCE: maintained at the 16–17% target range (rolling 12 months) and management raised the target to 18–19% (prior plan: 16–17%) - Fee income strength (major positive): fees above plan; payments +21% YoY, wealth management +19% YoY, capital markets best quarter on record; overall fee growth raised as a key offset to NII softness

Guidance/outlook for 2026: still confident but slightly more cautious on NII - Overall tone: “broadly tracking” vs plan; organic growth solid; integrations on track; still expects inflection toward higher returns - Efficiency outlook improved: expects Q4 efficiency ratio mid-to-low 54% (better than “<55%” prior guidance) - EPS (2027 commitment): $1.90–$1.93 and ROTCE 18–19% (management says “fully on track”) - NII/NIM headwind: now expects 2026 NIM to trend into the high 3.20s (down from mid-3.30s prior) - Drivers: slower loan growth profile (midpoint vs high end), modestly higher deposit cost trajectory, and ~$4B higher Fed cash (low revenue impact but reduces reported NIM denominator) - Supports earnings via fee + expense discipline: raised fee revenue growth expectation by +4 pts to 31–33%; tightened expense growth range to lower half of 32.5–33.5%; expects full-year operating leverage 400–450 bps (modestly lower than initial)

Balance sheet & capital: strong liquidity, conservative credit, meaningful buybacks - Liquidity (clear differentiator): available contingent liquidity ~173% of uninsured deposits; unmodified LCR 118%; 69% deposits insured - Capital: adjusted CET1 well within 9–10% operating range; expects Basel III Endgame to be beneficial - Credit: stable—net charge-offs 26 bps; criticized asset ratio 4.3% (within historical range); NPA ratio 72 bps - Share repurchases: - Q1 buybacks ~$150M; Q2-to-date >$100M - 2026 plan increased to $550M (and management expects repurchases at least $550M) - Surprising but positive: Board approved new $3B repurchase authorization (framed as evergreen/multi-year capacity; Basel III could add more capital later, especially into 2027)