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

Strong quarter / “inflection point” narrative (good + surprising) - Management (Steve Steinour) said Q2 was “exceptional” with strong organic loan & deposit growth, expanding revenue/profitability, and successful completion of the Cadence systems conversion. - “Inflection point” message: core businesses performing well, conversions complete, poised to capture benefits of investments/partnerships and the expanded footprint—targeting faster organic growth and ROTCE improvement over the next years. - Notable operational “surprise”: Huntington grew deposits during the Cadence conversion weekend and weeks after—rarely achieved in bank conversions.

Cadence conversion executed fast; synergy ramp in motion (opportunity) - Conversion completed 235 days after announcement; 4,500 colleagues trained onto Huntington systems; onboarding of hundreds of thousands of customers; signage/ATM/ITM and treasury onboarding at scale (e.g., 6,000 high-value commercial customers). - Cost synergies: reaffirmed on track for $365M by Q4 (Cadence + Veritex synergy program cumulatively $435M run-rate by Q4). - Revenue synergy proof points (early): - Pipelines expanding ~$1B across energy/CRE/auto floorplan; $500M+ additional commitments in energy/CRE and ~$440M auto floorplan pipelines. - Capital markets: 10+ transactions in Cadence footprint generating ~$12M fees and building a pipeline. - Payments/treasury: merchant services/treasury management/commercial card capabilities driving new revenue and deeper primary relationships. - Deposit optimization indicators: retention of ~80% of maturing CDs, reduction in higher-cost wholesale/broker funding, growth in checking accounts, and early digital deposit acquisition: new checking households up from ~3,100/month to ~5,900/month since February (not yet after major marketing spend).

Financial performance highlights + guidance framing (good) - Adjusted PPNR +12% QoQ; Net interest income (NII) +8.5% sequentially. - Value-added fee revenues +15% (and management emphasized strong momentum/outperformance): payments +10% YoY, wealth management +12% YoY, capital markets +46% YoY, loan & deposit fees +19% YoY; overall value-added fee revenue growth >60% YoY (with “organic” excluding certain items). - Operating leverage: 210 bps positive operating leverage over trailing 12 months. - Loan growth: average loans +$15B (+8.6% QoQ); normalized for Cadence day-count, organic growth remained positive (management cited ~1.2% sequential normalized). - Deposit growth: average deposits +$18.8B (+9.2% QoQ); normalized organic deposit growth ~+1.8% sequential, with deposits outpacing loans.