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

Q2 performance: strong core growth + solid profitability/operating leverage - Management highlighted “exceptional quarter” execution with strong organic loan and deposit growth, expanded fee revenues, and excellent credit performance. - Reported momentum drivers: Adjusted PPNR +12% QoQ, Net interest income +8.5% sequentially, value-added fee revenues +15% QoQ, and ~210 bps positive operating leverage (trailing 12 months). - Broad-based loan growth: average loans +$15B (+8.6% sequentially); even after Cadence day-count normalization, average loans were still up (to $2.2B or +1.2%)—led by C&I/commercial-related categories. - Deposit growth outpaced loans: average deposits +$18.8B (+9.2% sequentially); normalized organic deposit growth ~+$4B (+1.8%), with customer acquisition and deepening primary bank relationships.

Cadence conversion milestone achieved; moving from “integration” to “growth” - Cadence systems conversion completed (described as 235 days after announcement), with heavy operational transition: 4,500 colleagues transitioned, hundreds of thousands of customers onboarded, ATM/ITM conversions, signage changes (4,000+ signs), and early treasury onboarding for 6,000+ high-value commercial customers. - Surprising/positive: they grew deposits during the conversion weekend and subsequent weeks—cited as rare for banks. - Cost synergies on track: remains on track toward $365M cost synergies in Q4 (run-rate build-up discussed later); overall $435M annualized run-rate cost synergies (Veritex + Cadence cumulatively by Q4). - Growth opportunity proof points: expanded client pipelines/commitments (e.g., nearly $1B added across energy/CRE/auto floorplan areas; $500M+ in energy & CRE, ~$440M in auto floorplan pipelines). Capital markets fees: 10+ transactions generating ~$12M.

NIM/net interest outlook: margin trough claimed; NII expected weaker-to-neutral near term - Management said NIM rose +10 bps YoY but fell -3 bps sequentially; they described Q2 as the “trough” and expect expansion from here. - Key margin drivers they cited: - Additional fixed-asset repricing - Liquidity added earlier creating a temporary NIM drag now alleviated - Cadence deposit portfolio optimization opportunities - Guidance tension / “bad” point: for 2026 they indicated NII expected to be at the bottom end of the range or modestly below it (versus earlier expectations), primarily due to incremental pressure on funding costs and competitive deposit environment—though they argued fees will offset.