HBAN

Financials

Huntington Bancshares

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Market Data

Financials

XBRL · SEC EDGAR

2018–2025(8yr)

Revenue

Net Income

Metric	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$881.0M	$939.0M	$884.0M	$1.1B	$1.3B	$1.4B	$1.5B	$1.6B	+6.4%
Net Interest Income	$3.2B	$3.2B	$3.2B	$4.1B	$5.3B	$5.4B	$5.3B	$6.0B	+12.1%
Noninterest Income	$1.3B	$1.5B	$1.6B	$1.9B	$2.0B	$1.9B	$2.0B	$2.2B	+6.6%
Noninterest Expense	$2.6B	$2.7B	$2.8B	$4.4B	$4.2B	$4.6B	$4.6B	$5.0B	-9.0%
Efficiency Ratio	58.7%	58.3%	58.0%	73.0%	57.9%	62.1%	61.8%	61.4%	+0.4pp
Net Income	$1.4B	$1.4B	$817.0M	$1.3B	$2.2B	$2.0B	$1.9B	$2.2B	+14.0%
Net Margin	158.1%	150.3%	92.4%	116.4%	169.8%	139.4%	132.2%	141.5%	+9.4pp
ROA	1.28%	1.29%	0.66%	0.74%	1.22%	1.03%	0.95%	0.98%	+0.0pp
EPS (Diluted)	$1.20	$1.27	$0.69	$0.90	$1.45	$1.24	$1.22	$1.39	+13.9%

Total Debt$17.2B

Cash & Equiv.$2.7B

Net Debt$14.5B

3 min read

1. THE BIG PICTURE

Huntington is aggressively outgrowing its Midwestern roots by betting on a "Fair Play" brand strategy to disrupt the Texas and Southern banking markets. While its peers are largely focused on defensive positioning, Huntington is leveraging the Veritex and Cadence acquisitions to build a high-growth commercial and consumer engine (8-K).

2. WHERE THE RISKS HIT HARDEST

The "Fair Play" philosophy—which relies on customer-friendly features like 24-Hour Grace® and $50 Safety Zone® to drive loyalty—is threatened by interest rate volatility because net interest income is Huntington’s primary revenue driver (10-K Item 1, RISKS). If rates shift unfavorably, the bank may lack the margin cushion to maintain these low-fee programs while simultaneously absorbing the "substantial" and difficult-to-estimate integration costs of the Cadence merger (RISKS). Furthermore, the "OCR sales process" designed to deepen relationships is vulnerable to the bank’s 60% concentration in commercial lending; a downturn in that sector could trigger credit losses that exceed the current $2.7 billion allowance (XBRL, RISKS).

3. WHAT THE NUMBERS SAY TOGETHER

While Huntington delivered 10.6% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth—ranking second among its peer group—the most recent quarter revealed the friction of its expansion strategy. Net income fell 2% to $519 million, weighed down by $154 million in acquisition-related expenses (8-K, Peer Table). This highlights a divergence: the bank is successfully growing its balance sheet (loans up 14%, deposits up 9%) but is currently less efficient than its peers, carrying a 60.1% efficiency ratio that ranks near the bottom of the group (8-K, Peer Table).

Short interest stands at 4.0% of the float, suggesting a segment of the market remains skeptical of the bank's aggressive pivot (Yahoo Finance). This skepticism is reinforced by the bank's deposit mix; Huntington has the lowest non-interest-bearing deposit ratio in its peer group at 17.3%, meaning it must pay interest on a larger portion of its funding than competitors like Fifth Third or M&T Bank (Peer Table).

4. IS IT WORTH IT AT THIS PRICE?

At 8.4x forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Huntington trades at a modest discount to the peer median of 9.5x (Peer Table). According to CAPM analysis, the market is pricing in a long-term growth rate of just 0.5%. This valuation seems disconnected from Huntington’s actual trajectory, as the bank recently completed the Veritex acquisition and is poised to "springboard" growth across the South with the Cadence merger (8-K).

However, the discount is supported by Huntington’s lower profitability metrics; its 13.4% ROTCEROTCEReturn on Tangible Common Equity — the primary profitability measure for bank investors; net income as a percent of tangible equity. Higher is better trails the 15.9% seen at U.S. Bancorp (Peer Table). For the current price to be "fair," the bank must prove it can convert its new Southern footprint into the same high-margin, low-cost deposit base enjoyed by its more established peers. If growth were to align with broader GDP expectations (2.5%), the justified multiple would rise to 13.7x (CAPM analysis).

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if the efficiency ratio remains above 60% after the Cadence merger closes, indicating that the "substantial" integration costs are not being offset by the anticipated synergies (Peer Table, RISKS).
Constructive if the non-interest-bearing deposit ratio moves toward the peer median of 25%, proving that the "Fair Play" brand is successfully attracting "sticky," zero-cost core deposits in new markets (Peer Table).

6. BOTTOM LINE

Structural Advantage: A proprietary "Fair Play" product suite that serves as a low-cost customer acquisition tool, coupled with a consultative OCR sales process that maximizes revenue per household.

Bottom Line: Huntington is an undervalued growth story currently obscured by the temporary costs and execution risks of a massive geographic expansion.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Credit Risk and ACL Adequacy: Huntington Bancshares maintains an allowance for credit losses (ACLACLAllowance for Credit Losses — the reserve a bank sets aside to cover expected future loan losses) of $2.7 billion as of December 31, 2025. This figure represents management’s estimate of lifetime losses, but there is no certainty it will remain appropriate if economic conditions, market conditions, or specific customer credit quality worsen.
Interest Rate Sensitivity: Net interest income—the difference between interest earned on assets and interest paid on liabilities—is highly sensitive to interest rate fluctuations. If interest-bearing liabilities reprice faster than assets in a rising rate environment, or if assets reprice faster than liabilities in a falling rate environment, net interest income is materially impacted.
Commercial Lending Concentration: As of December 31, 2025, 60% of the loan portfolio consists of commercial loans, including commercial and industrial loans, commercial real estate, and lease financing. These loans carry higher default risk than residential mortgages because repayment depends on borrower income streams or property operations, and they involve larger balances per borrower.
Cadence Merger Integration: Huntington Bancshares expects to incur substantial costs related to the Cadence Merger, including legal, advisory, and integration expenses. Failure to effectively manage the expanded operations or retain key personnel could prevent the realization of anticipated cost savings and benefits.
Cybersecurity and Operational Failure: Huntington Bancshares relies on complex internal and third-party infrastructure. Cyber-attacks, including social engineering and malware, or failures in third-party systems could lead to financial loss, litigation, and reputational damage, potentially requiring significant additional resources for remediation.

2. Company-Specific Risks

Goodwill Impairment: Huntington Bancshares held $6.0 billion in goodwill as of December 31, 2025. Impairment charges would reduce earnings and could restrict the Bank’s ability to pay dividends to the holding company, thereby impacting Huntington Bancshares’ ability to pay dividends to shareholders.
Holding Company Structure: Huntington Bancshares is a separate entity from the Bank and relies on dividends from the Bank to fund operating costs and shareholder dividends. Regulatory restrictions on the Bank’s capital adequacy could limit these dividend payments.
Quantitative Model Reliance: Huntington Bancshares uses quantitative models for capital planning (CCAR), risk management, and estimating fair values. Deficiencies in these models, whether due to code errors, inaccurate data, or misuse, can lead to flawed business decisions and regulatory scrutiny.
AI Implementation Risks: The use of AI in business operations exposes Huntington Bancshares to risks regarding flawed algorithms, biased outputs, and potential legal or regulatory liability if AI-driven decisions violate fair lending or consumer protection laws.

3. Regulatory/Legal Risks

Capital and Liquidity Requirements: Huntington Bancshares is subject to CCAR assessments and U.S. Basel III standards. Failure to meet these requirements or unfavorable responses to capital plans from the Federal Reserve or OCC could restrict common stock dividends and share repurchases.
Consumer Protection Oversight: Under the CFPB, Huntington Bancshares faces heightened scrutiny regarding consumer and business banking practices. Investigations or enforcement actions could result in significant revenue loss, fines, and mandatory changes to business operations.
Anti-Money Laundering (AML) Compliance: Noncompliance with the Bank Secrecy Act and OFAC sanctions can lead to significant civil money penalties and restrictions on business activities, including the ability to pursue acquisitions.
Pending Litigation: The resolution of significant pending litigation, if unfavorable, could have a material adverse effect on results of operations for a particular reporting period.

4. Financial Impact Map

Credit Risk (ACL Adequacy) → Net Income and Capital → $2.7 billion in reserves allocated as of December 31, 2025.

Interest Rate Volatility → Net Interest Income → Primary driver of results of operations; impacts value of loans, securities, and mortgage servicing rights.

Commercial Lending Concentration → Provision for Credit Losses → $1.7 billion of reserves specifically allocated to the commercial loan portfolio as of December 31, 2025.

Cadence Merger Integration → Earnings → Substantial, uncertain costs and potential charges against earnings following completion.

Goodwill Impairment → Earnings and Book Value → $6.0 billion in goodwill recorded as of December 31, 2025; impairment would reduce earnings and restrict dividend capacity.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Jan 2026	—
10-Q	Oct 2025	Sep 2025
14A	Mar 2025	—