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1. Company Snapshot

1.a. Company Description

Huntington Bancshares Incorporated operates as the bank holding company for The Huntington National Bank that provides commercial, consumer, and mortgage banking services in the United States.The company operates through four segments: Consumer and Business Banking; Commercial Banking; Vehicle Finance; and Regional Banking and The Huntington Private Client Group (RBHPCG).The Consumer and Business Banking segment offers financial products and services, such as checking accounts, savings accounts, money market accounts, certificates of deposit, credit cards, and consumer and small business loans, as well as investment products.


This segment also provides mortgages, insurance, interest rate risk protection, foreign exchange, automated teller machine, and treasury management services, as well as online, mobile, and telephone banking services.It serves consumer and small business customers.The Commercial Banking segment offers regional commercial banking solutions for middle market businesses, government and public sector entities, and commercial real estate developers/REITs; and specialty banking solutions for healthcare, technology and telecommunications, franchise finance, sponsor finance, and global services industries.


It also provides asset finance services; capital raising solutions, sales and trading, and corporate risk management products; institutional banking services; and treasury management services.The Vehicle Finance segment provides financing to consumers for the purchase of automobiles, light-duty trucks, recreational vehicles, and marine craft at franchised and other select dealerships, as well as to franchised dealerships for the acquisition of new and used inventory.The RBHPCG segment offers private banking, wealth and investment management, and retirement plan services.


Huntington Bancshares Incorporated was founded in 1866 and is headquartered in Columbus, Ohio.

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1.b. Last Insights on HBANL

Negative drivers behind Huntington Bancshares' recent performance include rising expenses, which could offset the benefits of its strategic initiatives. Despite delivering earnings and revenue surprises in Q4 2024, Huntington's expenses are a concern. Additionally, market uncertainties may impact its growth prospects. The company's reliance on net interest income (NII) and fee income growth may also be susceptible to fluctuations in interest rates and economic conditions.

1.c. Company Highlights

2. Huntington Bancshares' Strong Q4 2025 Earnings: A Deeper Dive

Huntington Bancshares reported a robust fourth quarter 2025, with earnings per common share of $0.30 and adjusted EPS of $0.37, up 9% year over year. The company's revenue growth was impressive, with net interest income growing $86 million or 5.6% sequentially, and net interest margin at 3.15%. The bank's fee income businesses also performed well, with year-over-year growth in payments, wealth management, and capital markets. Revenue growth was 11% for the full year, driven by a strong organic growth engine, with significant above-peer cumulative organic loan and deposit growth.

Publication Date: Jan -23

📋 Highlights
  • Strong Revenue & EPS Growth:: 11% revenue growth and 16% adjusted EPS growth in 2025, with $0.37 adjusted EPS, up 9% YoY.
  • Loan & Deposit Expansion:: Average loans rose 14.4% YoY (excluding Veritex), and deposits grew 8.6% YoY, driven by organic growth and partnerships.
  • Operating Leverage & Efficiency:: Achieved 290 bps of positive operating leverage in 2025, with expenses up just $7M sequentially and targeting 55% efficiency ratio in 2026.
  • Partnership Synergies:: Veritex and Cadence integrations expected to add $80–90M in revenue, with $1.85–$2B net interest income from Cadence alone.
  • Capital Returns & Guidance:: $50M/quarter buybacks planned in 2026, 40% earnings returned via dividends, and 13–16% fee revenue growth from expanded services.

Loan and Deposit Growth

Average loans grew 14.4% year over year, excluding the addition of the Veritex portfolio, and average deposits increased 5.1% quarter over quarter and 8.6% year over year. This growth was a key driver of the company's strong financial performance, and positions Huntington for sustained growth in 2026.

Expense Discipline and Synergies

The company's operating expenses were up just $7 million sequentially, reflecting its cost discipline and focus on continuous expense reengineering. The integration of Veritex and Cadence partnerships is progressing well, with a focus on creating substantial cost and revenue synergies. The company expects to realize significant benefits from these partnerships, with Cadence expected to contribute $1.85-$1 billion to net interest income.

Outlook and Valuation

Huntington guides for 2026 net interest income growth of 10-13% on a stand-alone basis, supported by 11-12% loan growth and 8-9% deposit growth. The company's valuation metrics are attractive, with a Price-to-Tangible Book Value (P/TBV) ratio of approximately 1.16, and a Dividend Yield of 3.51%. Analysts estimate next year's revenue growth at 7.9%, which is slightly below the company's guidance. With a strong track record of execution and a clear plan for future growth, Huntington is well-positioned to continue delivering value to shareholders.

Growth Prospects

The company's investments in digital and technology capabilities, marketing, and people are expected to drive future growth, with a model of 10% revenue growth CAGR, 20% investment growth CAGR, and earnings growth in the teens. The acquisition of Cadence is expected to add $80-$90 million in revenue, and the company is confident in its long-term trajectory, citing its operating model and momentum across the franchise.

3. NewsRoom

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Is Huntington Stock Still Attractive After Recent Rally And Digital Banking Investments In 2025

Dec -25

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Cadence Bank, Huntington Bancshares get regulatory approval for merger

Dec -23

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Huntington Secures OCC Regulatory Green Light for Cadence Merger

Dec -23

Source: zacks.com

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Huntington Bancshares Incorporated and Cadence Bank Announce Receipt of Required Regulatory Approval for Pending Merger

Dec -22

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How The Cadence Deal And Growth Outlook Are Shaping The Huntington Bancshares Investment Story

Dec -19

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Earnings Preview: What To Expect From Huntington Bancshares’ Report

Dec -19

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Capstone Partners Releases 2025 Middle Market Business Owners Research Survey

Dec -18

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3 Cheap Dividend Stocks That Can Beat Inflation and Pay You to Wait

Dec -18

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.45%)

6. Segments

Consumer & Regional Banking

Expected Growth: 4.5%

Growing demand for digital banking services, increasing adoption of online lending platforms, and rising small business formations drive growth in Consumer & Regional Banking segment.

Commercial Banking

Expected Growth: 4.5%

Growing demand for digital banking services, increasing adoption of cash management solutions, and expansion of commercial lending products drive growth in Huntington Bancshares' Commercial Banking segment.

Treasury / Other

Expected Growth: 3.5%

The treasury and other segment of Huntington Bancshares Incorporated is expected to grow driven by increasing investment securities and miscellaneous income, as well as the company's strategic initiatives to optimize its balance sheet and improve profitability.

7. Detailed Products

Consumer Banking

Provides traditional banking services to individuals and small businesses, including checking and savings accounts, credit cards, and loans.

Commercial Banking

Offers cash management, lending, and other financial services to middle-market businesses and government entities.

Vehicle Finance

Provides financing for new and used vehicles, as well as leasing options for consumers and dealerships.

Residential Mortgage

Offers mortgage loans and refinancing options for homebuyers and homeowners.

Wealth Management

Provides investment, trust, and insurance services to individuals, families, and businesses.

Treasury Management

Offers cash management and treasury services to help businesses manage their cash flow and optimize their financial performance.

Equipment Finance

Provides financing options for businesses to acquire equipment and technology.

Home Equity

Offers home equity loans and lines of credit to help homeowners tap into their home's equity.

8. Huntington Bancshares Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Huntington Bancshares Incorporated operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and extensive branch network help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Huntington Bancshares Incorporated has a large customer base, but individual customers do not have significant bargaining power. The company's diverse customer base and lack of concentration in a single industry reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Huntington Bancshares Incorporated has a diverse supplier base, and no single supplier has significant bargaining power. The company's large scale of operations and diversified supplier base reduce the bargaining power of suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. While new fintech companies are emerging, they do not pose a significant threat to Huntington Bancshares Incorporated's established business.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Huntington Bancshares Incorporated faces intense competition from other regional banks, national banks, and fintech companies, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.04%
Debt Cost 9.49%
Equity Weight 60.96%
Equity Cost 9.49%
WACC 9.49%
Leverage 64.05%

11. Quality Control: Huntington Bancshares Incorporated passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

25.64$

Current Price

25.64$

Potential

-0.00%

Expected Cash-Flows