8-K: Huntington Bancshares Outlines Growth Strategy at Goldman Sachs Conference

Huntington Bancshares presented its strategic vision and updated financial guidance at the 2025 Goldman Sachs Financial Services Conference, emphasizing organic growth and successful M&A integration.

Summary

• Huntington Bancshares Incorporated (HBAN) participated in the 2025 Goldman Sachs Financial Services Conference on December 10, 2025, with presentations by CEO Steve Steinour and CFO Zach Wasserman.
• The company highlighted its foundational strategy of organic growth, complemented by a proven history of successful M&A integration, viewing acquisitions as a springboard for expansion.
• Huntington maintains an aggregate moderate to low risk appetite across its operations.
• Post-TCF merger (June 2021), the company achieved a 1.5-year tangible book value (TBV) earn-back, significantly better than the guided 2.7 years.
• The recent Veritex acquisition (October 2025) resulted in no TBV dilution, outperforming the guide of less than 1% dilution, due to the elimination of CECL double count.
• The anticipated Cadence merger (1Q26) is projected to have a 7% TBV dilution with a 3-year earn-back period.
• Huntington demonstrated peer-leading organic loan growth with a 2Q21-2Q25 CAGR of 4.3%, compared to the peer median of 2.7% and Real GDP of 2.1%.
• The Cadence partnership is expected to create a multi-region powerhouse with approximately 1,450 branches across 21 states, pro forma assets of ~$276 billion, deposits of ~$220 billion, and loans & leases of ~$184 billion as of September 30, 2025.
• Medium-term financial targets for 2027 include a 6-9% Pre-Provision Net Revenue (PPNR) CAGR, positive operating leverage, and an 18-19% Return on Average Tangible Common Equity (ROTCE).
• The company provided updated FY25 guidance (as of 10/17/25), projecting average loan growth of ~9-9.5% (high end or slightly above prior range of ~8%) and average deposit growth of ~6.5-7% (high end of prior range of ~5.5%).
• Net Interest Income is guided to grow 10-11% in FY25 (from a FY24 baseline of $5.398 billion), an increase from the prior guidance of +$20M PPNR and +$0.01 EPS.
• Noninterest income (excluding CRTs and loss on sale of securities) is expected to grow ~7% including Veritex, consistent with prior guidance.
• Noninterest expense (excluding notable items) is projected to increase by ~6.5% for HBAN standalone plus ~$60 million for Veritex's partial quarter, with ~250bps operating leverage for the combined enterprise.
• Full-year 2025 net charge-offs are expected to be at the midpoint of the 20-30 basis points range, and the effective tax rate remains unchanged at 17.5%-18%.

Sentiment

Score: 8

Explanation: The filing presents a highly positive outlook, emphasizing strong organic growth, successful M&A integration, and ambitious but achievable financial targets. The updated guidance for FY25 is better than previously indicated, and past integrations have outperformed expectations. While standard risks are disclosed, the overall tone and data point towards robust performance and strategic execution.

Positives

• Achieved a 1.5-year tangible book value (TBV) earn-back for the TCF merger, significantly better than the guided 2.7 years.
• The Veritex acquisition resulted in no TBV dilution, outperforming the guide of less than 1% dilution.
• Demonstrated peer-leading organic loan growth with a 2Q21-2Q25 CAGR of 4.3%, surpassing the peer median of 2.7% and Real GDP of 2.1%.
• The Cadence partnership is expected to create a significant multi-region powerhouse, expanding Huntington's footprint into faster-growing markets in the South.
• Updated FY25 guidance projects average loan growth at the high end or slightly above the prior range (~9-9.5%) and average deposit growth at the high end of the range (~6.5-7%).
• Net Interest Income guidance for FY25 shows a strong 10-11% growth, an improvement from previous PPNR and EPS guidance.
• Medium-term financial targets for 2027 are robust, aiming for 6-9% PPNR CAGR, positive operating leverage, and 18-19% ROTCE.
• Reported a Last Twelve Months (LTM) ROTCE of 16.7% and a 3Q25 year-over-year TBV growth of +10.3%.

Risks

• Changes in general economic, political, or industry conditions.
• Deterioration in business and economic conditions, including persistent inflation, supply chain issues, labor shortages, global instability, geopolitical matters, and financial market volatility.
• Changes in U.S. trade policies, including tariffs.
• Impact of pandemics and other catastrophic events or disasters.
• Impacts related to or resulting from bank failures and other volatility, including potential increased regulatory requirements and costs (e.g., FDIC special assessments, long-term debt, heightened capital requirements), and potential impacts to macroeconomic conditions affecting deposit attraction/retention and capital raising.
• Unexpected outflows of uninsured deposits which may require selling investment securities at a loss.
• Changing interest rates negatively impacting the value of the investment portfolio.
• Loss of investment portfolio value negatively impacting market perceptions and leading to deposit withdrawals.
• Effects of social media on market perceptions of banks generally.
• Cybersecurity risks.
• Uncertainty in U.S. fiscal and monetary policy, including Federal Reserve interest rate policies.
• Volatility and disruptions in global capital, foreign exchange, and credit markets.
• Competitive pressures on product pricing and services.
• Success, impact, and timing of business strategies, including market acceptance of new products or services (e.g., Fair Play banking philosophy).
• Changes in policies and standards for regulatory review of bank mergers.
• Nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations (e.g., Dodd-Frank, Basel III, SEC, OCC, Federal Reserve, FDIC, CFPB, state regulators).
• Occurrence of any event, change, or circumstances that could give rise to the right of one or both parties to terminate the merger agreement between Huntington and Cadence.
• Outcome of any legal proceedings that may be instituted against Huntington or Cadence.
• Delays in completing the proposed transaction involving Huntington and Cadence.
• Failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits).
• Failure to obtain Huntington shareholder approval or Cadence shareholder approval or to satisfy any other conditions to the transaction on a timely basis or at all.
• Possibility that the anticipated benefits of the transaction are not realized when expected or at all, including from integration problems or economic/competitive factors.
• Possibility that the transaction may be more expensive to complete than anticipated.
• Ability of Huntington and Cadence to meet expectations regarding the timing, completion, and accounting and tax treatment of the transaction.
• Diversion of management's attention from ongoing business operations and opportunities.
• Potential adverse reactions or changes to business, customer, or employee relationships resulting from the announcement or completion of the transaction.
• Ability to complete the transaction and integration of Huntington and Cadence successfully.
• Dilution caused by Huntington's issuance of additional shares of its capital stock in connection with the transaction.

Future Outlook

Huntington Bancshares projects continued strong performance, with updated FY25 guidance indicating higher-than-expected loan and deposit growth and improved net interest income. The company aims for significant value creation by 2027, targeting a 6-9% PPNR CAGR, positive operating leverage, and an 18-19% ROTCE, driven by its differentiated operating model and strategic M&A integrations like the upcoming Cadence merger.

Management Comments

• Steve Steinour, Chairman, President, and Chief Executive Officer, and Zach Wasserman, Chief Financial Officer, are scheduled to present to analysts and investors at the 2025 Goldman Sachs Financial Services Conference.

Industry Context

Huntington's strategy of combining robust organic growth with disciplined M&A, as evidenced by the successful integrations of TCF and Veritex and the planned Cadence merger, positions it to gain market share and expand its geographic footprint. This approach is particularly relevant in a consolidating banking sector where scale and diversified revenue streams are increasingly important for navigating economic volatility and regulatory changes. The focus on 'Fair Play banking philosophy' also suggests an emphasis on customer-centric strategies, which can be a differentiator in a competitive market.

Comparison to Industry Standards

• Huntington's post-TCF loan growth (2Q21-2Q25 CAGR of 4.3%) significantly outpaced the peer median of 2.7% and the Real GDP growth of 2.1%, indicating superior organic growth performance compared to its competitors (CFG, CMA, FITB, KEY, MTB, PNC, RF, TFC, USB, ZION).
• The company's ability to achieve a 1.5-year TBV earn-back for the TCF merger, compared to a guided 2.7 years, demonstrates strong execution and integration capabilities relative to typical M&A expectations in the banking sector.
• The Veritex acquisition's outcome of no TBV dilution, against a guided <1% dilution, further highlights effective deal structuring and integration, potentially setting a benchmark for efficient acquisitions.
• The projected 2027 ROTCE goal of 18-19% positions Huntington to be a top-tier performer in the financial services industry, exceeding many global benchmarks for regional banks.

Corporate Governance

Legal Proceedings

• The filing notes the risk of 'the outcome of any legal proceedings that may be instituted against Huntington or Cadence' in connection with the proposed transaction, but no specific proceedings are detailed.

Stakeholder Impact

• **Shareholders**: Potential for long-term value creation through strategic growth and M&A, with strong financial targets (PPNR CAGR, ROTCE). However, there is a projected 7% dilution from the Cadence merger, though with an anticipated 3-year earn-back.
• **Customers**: Expanded product and service offerings, enhanced national capabilities, and digital options through the combined entity with Cadence, particularly in new, faster-growing markets.
• **Employees**: Integration efforts related to the Cadence merger will likely impact employees of both companies, with potential for new opportunities or restructuring.
• **Regulators**: Ongoing scrutiny and approval processes for the Cadence merger, with potential for increased regulatory requirements and costs, as noted in the risk factors.

Next Steps

• Huntington Bancshares Incorporated will participate at the 2025 Goldman Sachs Financial Services Conference on December 10, 2025.
• The proposed transaction involving Huntington and Cadence will be submitted to Huntington's shareholders and Cadence's shareholders for their consideration.
• Completion of the Cadence merger is anticipated in 1Q26.

Key Dates

Recommendation

The filing presents a compelling case for Huntington Bancshares, highlighting superior organic growth compared to peers, a strong track record of outperforming M&A integration targets (TCF, Veritex), and an ambitious yet achievable set of medium-term financial goals. The updated FY25 guidance is positive, indicating better-than-expected loan and deposit growth and improved net interest income. The strategic Cadence merger is expected to create a significant regional powerhouse, extending reach into high-growth markets. While the merger involves some dilution, the company's proven ability to quickly earn back TBV dilution and its overall disciplined capital allocation strategy suggest a strong potential for long-term shareholder value creation. These factors collectively support a 'buy' recommendation for investors seeking exposure to a well-managed, growth-oriented regional bank.

Keywords

Huntington Bancshares, HBAN, Goldman Sachs Conference, Financial Services, Banking, Merger and Acquisition, Cadence Bank, Veritex, TCF Financial, Organic Growth, Financial Guidance, Loan Growth, Deposit Growth, Net Interest Income, Return on Tangible Common Equity, TBV, Shareholder Value, SEC Filing, 8-K