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

Solid Q3 performance + strategic confidence (but cautious macro framing): - Management characterized the operating environment as *generally constructive* with strong commercial pipelines and solid consumer spending. - Strategy emphasis: disciplined risk-adjusted growth, balance sheet optimization, expense efficiency, and continued investment for long-term growth. - Key caveat/negative: higher interest rates and elevated energy/input prices could dampen future growth and worsen a “K-shaped” consumer economy.

2027 outlook reaffirmed with earnings growth plan; “bridge” to explain confidence: - Company reiterated 2027 EPS guidance of $1.75–$1.83 and expectations for >20% EPS growth from 2025 and ROTCE rising to 17–18%. - In the guidance discussion, CFO described the delta (consensus ~$1.54 in 2026 vs ~$1.76 in 2027) as driven mainly by: - ~$150M incremental cost synergies (anniversary of late-2025/late-2026 run-rate benefits) ≈ $0.06 EPS - share repurchases ≈ $0.02 EPS - remaining uplift framed as core performance (NII + fees + operating leverage). - Stated path to deliver next year: roughly 6% loan growth, flat NIM, plus meaningful fee contribution and operating leverage.

Lending/deposit momentum: strong commercial growth, selective pullback where pricing is “not rational”: - Period-end loans +1.1%, while average loans were -0.4% quarter-over-quarter; growth primarily from C&I, including corporate/specialty, asset finance, and middle market. - Offsets included lower CRE, auto, and residential mortgages balances (and seasonal declines in distribution finance). - Management explicitly said they scaled back certain asset classes due to compressed risk-adjusted pricing—supporting returns but impacting growth rates. - Deposits: average deposits +~$0.5B (+0.2%); end-of-period deposit growth roughly tracked loan growth, supported by relationship deepening (business banking and commercial PBR growth noted).