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

Strong Q2 operating performance + “inflection point” narrative - Management said the quarter was exceptional with strong organic loan & deposit growth, expanding revenues/profitability, and successful completion of the Cadence systems conversion. - Reported/underscored financial momentum (key highlights): Adjusted PPNR +12% QoQ, Net interest income +8.5%, Value-added fee revenues +15%, and 210 bps of positive operating leverage (trailing 12 months). - Tone: visibility improved vs. last quarter; customer activity steady; commercial demand broad-based; management frames Huntington as positioned to capture benefits now that conversions are done.

Guidance/outlook: 2026 momentum and confidence in 2027 ROTCE/EPS targets - Reiterated conviction that 2027 ROTCE target of 18%–19% remains intact. - EPS objective for 2027: $1.90–$1.93 (unchanged); described as driven by high-single-digit loan/deposit growth, stable-to-rising NIM, strong fee growth, and expense synergy capture. - Q4 expected to be the strongest earnings quarter for the combined organization, with profitability boosted by run-rate cost synergies from Cadence (fully in run rate into Q4). - Full-year 2026 outlook (NII): Management expects to be at the bottom of the NII range or modestly below due to deposit cost pressure; but offset by strong fee outperformance.

NIM / deposit cost dynamics (good news on optimization, bad news on near-term margin) - Q2 NIM: +10 bps YoY, -3 bps QoQ; management said Q2 is the trough and expects NIM expansion from here. - Drivers cited for NIM: fixed asset repricing, release of liquidity added earlier in the year, and Cadence deposit portfolio optimization (partially mitigating further deposit cost increases). - Deposit optimization/competitive environment: Company told investors it expects the environment to remain competitive but rational, using pricing analytics across many rate regions and granular rate management. - Cadence conversion helped deposits survive/grow: deposits were reported as growing during conversion weekend and following weeks (a “rare” outcome).