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

Solid Q3 operating performance; strategy unchanged despite a tougher environment - Management said results reflect execution across core banking, fee businesses, and partnerships, with a generally supportive customer activity backdrop. - Key strategic priorities: disciplined, moderate-to-low risk appetite; optimizing the balance sheet; expense efficiency while investing for long-term growth; capital allocation focused on meeting risk-adjusted return hurdles.

Growth & margins: loans modestly down sequentially, deposits up slightly; NIM improving then expected stable - Loans: Period-end loans +1.1%, but average loans -0.4% vs prior period. Growth led by C&I (corporate/specialty, asset finance, middle market); offsets included lower CRE, auto, and residential mortgages; distribution finance declined seasonally. - Deposits: Average deposits +~$0.5B (+0.2%); end-of-period deposit growth about matching loan growth. Core relationship metrics improved (consumer PBR +4%, business +5%, commercial +7% YoY). - Net interest income / margin: NII ~$2.1B, +0.9% QoQ and +37% YoY. NIM +4 bps to 3.25%. Guidance: NIM expected “relatively stable” into Q4.

Fee engine strong; expenses controlled while synergies are landing - Fee revenue: Value-added fee revenue +15% YoY (reported), including Veritex & Cadence contributions. - Management emphasized fee drivers: treasury management penetration, card/payment volumes, merchant services, wealth growth, and higher capital markets engagement. - Expenses: Noninterest expense ~$1.7B, flat QoQ, with positive operating leverage over longer trailing periods. - Synergies: Cadence expense synergy actions largely completed in Q3; full run-rate benefit begins in Q4. Expense reengineering target ~1.5% of baseline expenses in 2026; expects ~100 bps+ positive operating leverage in 2026 (full-year).