Huntington Bancshares, Inc. - 4.50% PRF PERPETUAL USD 25 - Ser H

Q1 performance: strong profitability + fee strength + returns - Adjusted EPS $0.37 (+9% YoY); reported EPS $0.25. - Pre-provision net revenue +36% (adjusted). - Fee revenues “absolutely outstanding”: payments +21% YoY, wealth +19% YoY, and capital markets record quarter (revenue excluding acquisition impacts ~+60% YoY). Loan/deposit fees also strong (+28% YoY). - Returns: ROTCE maintained in target 16–17% range (rolling 12 months), and target raised to 18–19%.

Balance sheet: very strong liquidity/capital; temporary liquidity build - Liquidity upgraded: contingent liquidity ~173% of uninsured deposits; unmodified LCR 118%; 69% of deposits insured. - Adjusted CET1 within 9–10% operating range (well above regulatory minimums). - Temporary add ~$4B in Fed cash for liquidity strength—negligible impact on revenue dollars but reduces reported NIM via denominator effects. - Surprising/positive: they characterized this as a *confidence move*, not a trade-off—liquidity improved while economics were managed.

Guidance/outlook for 2026: NIM pressure but mostly offset by higher fees + cost discipline - Overall plan “broadly tracking”; integration on track. - NIM outlook lowered to “high 3.20s” (from mid-3.30s), driven by: - Lower loan growth (expecting ~midpoint vs earlier high end). - Modestly higher deposit cost trajectory (improvement slightly less than prior assumption). - ~$4B Fed cash affecting reported NIM (~5 bps of the change). - Fee expectations raised by ~4 percentage points to 31–33% growth (offset to earnings). - Expense growth tightened to lower half of 32.5%–33.5%, and full-year operating leverage expected 400–450 bps (modestly lower than initial). - Key milestone: exit Q4 efficiency ratio mid- to low 54% (cost synergies run-rate fully in place by then). - 2027 framework reiterated: EPS $1.90–$1.93 and ROTCE 18–19%.