Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations
INTRODUCTION
We are a multi-state diversified regional bank holding company organized under Maryland law in 1966 and
headquartered in Columbus, Ohio. Through the Bank, we are committed to making people’s lives better, helping
businesses thrive, and strengthening the communities we serve, and we have been servicing the financial needs of
our customers since 1866. Through our subsidiaries, we provide full-service commercial and consumer deposit,
lending, and other banking and financial services. These include, but are not limited to, payments, mortgage
banking, direct and indirect consumer financing, investment banking, capital markets, advisory, equipment
financing, distribution finance, investment management, trust, brokerage, insurance, and other financial products
and services. As of June 30, 2026, we operated over 1,400 branches in 21 states, with our Commercial and Vehicle
Finance businesses delivering expertise nationally.
This MD&A provides information we believe necessary for understanding our financial condition, changes in
financial condition, results of operations, and cash flows. This MD&A provides only material updates to the MD&A
included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report on
Form 10-K”), and therefore, should be read in conjunction with the 2025 Annual Report on Form 10-K. This MD&A
should also be read in conjunction with the Unaudited Consolidated Financial Statements, Notes to Unaudited
Consolidated Financial Statements, and other information contained in this report.
In this MD&A we refer to FTE net interest income and FTE total revenue and the efficiency and tangible common
equity ratios. These financial measures are not required by or calculated in accordance with GAAP, and may not be
calculated the same as similarly titled measures used by other companies. These financial measures should thus be
considered as supplemental in nature and not considered in isolation or as a substitute for the related financial
information prepared in accordance with GAAP. For a further description of these non-GAAP financial measures and
reconciliations to the most directly comparable GAAP measure, see the "Non-GAAP Financial Measures" within the
“Additional Disclosures” section below.
EXECUTIVE OVERVIEW
Veritex and Cadence Acquisitions
Effective October 20, 2025, Huntington completed the acquisition of Veritex Holdings, Inc. (“Veritex”), a bank
holding company headquartered in Dallas, Texas, whereby Veritex merged with and into Huntington, with
Huntington as the surviving entity. Upon completion of the merger, Huntington issued 107 million shares of its
common stock to Veritex shareholders of record as of the merger date, in addition to 1 million shares issued upon
the conversion of certain Veritex equity awards, resulting in total consideration from the transaction of $1.7 billion.
Effective February 1, 2026, Huntington completed the acquisition of Cadence Bank (“Cadence”), a regional bank
headquartered in Houston, Texas and Tupelo, Mississippi, whereby Cadence merged with and into Huntington
National Bank, with Huntington National Bank as the surviving bank. Upon completion of the merger, Huntington
issued 462 million shares of its common stock to Cadence shareholders of record as of the merger date, in addition
to the conversion of certain Cadence equity awards into Huntington equity awards. Further, each outstanding share
of 5.50% Series A Non-Cumulative Perpetual Preferred Stock of Cadence was converted into the right to receive one
depositary share representing 1/1000 of a share of a newly created 5.50% Series L Non-Cumulative Perpetual
Preferred Stock of Huntington. Consideration from the transaction totaled $8.3 billion.
Historical periods reflect results of legacy Huntington operations. Subsequent to the closing of each respective
acquisition, results reflect combined post-acquisition activity. For further information on the Veritex and Cadence
acquisitions, refer to Note 3 - “Business Combinations” of the Notes to Unaudited Consolidated Financial
Statements.
2026 2Q Form 10-Q 5
Table of Contents
Financial Performance Review
Selected Financial Data
Table 1 - Selected Quarterly and Year-to-Date Income Statement Data
Three Months Ended
Six Months Ended
(amounts in millions, except per share data)
June 30,
2026
June 30,
2025
Change
June 30,
2026
June 30,
2025
Change
Amount
Percent
Amount
Percent
Interest income
$3,382
$2,556
$826
32%
$6,468
$5,045
$1,423
28%
Interest expense
1,330
1,089
241
22
2,525
2,152
373
17
Net interest income
2,052
1,467
585
40
3,943
2,893
1,050
36
Provision for credit losses
132
103
29
28
290
218
72
33
Net interest income after provision for
credit losses
1,920
1,364
556
41
3,653
2,675
978
37
Noninterest income
785
471
314
67
1,467
965
502
52
Noninterest expense
1,809
1,197
612
51
3,583
2,349
1,234
53
Income before income taxes
896
638
258
40
1,537
1,291
246
19
Provision for income taxes
165
96
69
72
279
218
61
28
Income after income taxes
731
542
189
35
1,258
1,073
185
17
Income attributable to non-controlling
interest
4
6
(2)
(33)
8
10
(2)
(20)
Net income attributable to Huntington
727
536
191
36
1,250
1,063
187
18
Dividends on preferred shares
41
27
14
52
82
54
28
52
Net income applicable to common
shares
$686
$509
$177
35%
$1,168
$1,009
$159
16%
Average common shares—basic
2,021
1,457
564
39%
1,946
1,456
490
34%
Average common shares—diluted
2,048
1,481
567
38
1,975
1,482
493
33
Net income per common share—basic
$0.34
$0.35
$(0.01)
(3)
$0.60
$0.69
$(0.09)
(13)
Net income per common share—diluted
0.33
0.34
(0.01)
(3)
0.59
0.68
(0.09)
(13)
Cash dividends declared per common
share
0.155
0.155
—
—
0.31
0.31
—
—
Return on average total assets
1.02%
1.04%
0.92%
1.04%
Return on average common
shareholders’ equity
9.3
11.0
8.3
11.1
Return on average tangible common
shareholders’ equity (1)
15.1
16.1
13.4
16.4
Net interest margin (2)
3.21
3.11
3.23
3.11
Efficiency ratio (3)
61.5
59.0
64.2
58.9
Revenue and Net Interest Income—FTE
(non-GAAP)
Net interest income
$2,052
$1,467
$585
40%
$3,943
$2,893
$1,050
36%
FTE adjustment (2)
20
16
4
25
39
31
8
26
Net interest income, FTE (non-GAAP) (2)
2,072
1,483
589
40
3,982
2,924
1,058
36
Noninterest income
785
471
314
67
1,467
965
502
52
Total revenue, FTE (non-GAAP) (2)
$2,857
$1,954
$903
46%
$5,449
$3,889
$1,560
40%
(1)Net income applicable to common shares excluding expense for amortization of intangibles for the period divided by average tangible common
shareholders’ equity, which represents a non-GAAP measure. Average tangible common shareholders’ equity equals average total common shareholders’
equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred taxes and
calculated assuming a 21% tax rate.
(2)Calculated on an FTE basis, which represents a non-GAAP measure, assuming a 21% tax rate.
(3)Noninterest expense less amortization of intangibles divided by the sum of FTE net interest income and noninterest income excluding securities gains
(losses), which represents a non-GAAP measure.
6 Huntington Bancshares Incorporated
Table of Contents
Summary of 2026 Second Quarter Results Compared to 2025 Second Quarter
For the second quarter of 2026, we reported net income attributable to Huntington of $727 million, or $0.33 per
diluted common share, compared with $536 million, or $0.34 per diluted common share, in the year-ago quarter.
The second quarter of 2026 reported net income was impacted by $152 million, or $116 million after tax, of
acquisition-related expenses, which reduced diluted earnings by $0.06 per common share, while the second quarter
of 2025 was impacted by $6 million of staffing efficiencies expense, partially offset by $3 million of favorable FDIC
Deposit Insurance Fund special assessment adjustments, which combined reduced diluted earnings on an after tax
basis by $0.01 per common share.
Net interest income was $2.1 billion for the second quarter of 2026, an increase of $585 million, or 40%, from
the year-ago quarter. FTE net interest income, a non-GAAP financial measure, increased $589 million, or 40%, from
the year-ago quarter. The increase in FTE net interest income primarily reflected a $67.5 billion, or 35%, increase in
average earning assets and a 10 basis point increase in the FTE NIM to 3.21%, partially offset by a $53.0 billion, or
35%, increase in average interest-bearing liabilities. The increases in average earning assets and average interest-
bearing liabilities were attributable to a combination of the Cadence and Veritex acquisitions, as well as organic
growth. The NIM increase was primarily due to a decrease in funding costs, partially offset by a decrease in yields on
interest earning assets.
The provision for credit losses was $132 million in the second quarter of 2026, an increase of $29 million, or
28%, from the year-ago quarter, with the increase driven by loan growth and higher NCOs in the current year
quarter, partially offset by a lower overall reserve coverage, and fluctuations in the provision for unfunded
commitments. NCOs were $119 million and represented 0.25% of average loans and leases in the second quarter of
2026, compared to $66 million, or 0.20% of average loans and leases, in the year-ago quarter.
Noninterest income was $785 million in the second quarter of 2026, an increase of $314 million, or 67%, from
the year-ago quarter. The increase in noninterest income was driven by increases across all major noninterest
income categories, in part due to the impact from the Cadence and Veritex acquisitions. Noninterest expense,
inclusive of the impact from the Cadence and Veritex acquisitions, was $1.8 billion in the second quarter of 2026, an
increase of $612 million, or 51%, from the year-ago quarter. The increase in noninterest expense was primarily
driven by $152 million of acquisition-related expenses and other impacts from the Cadence and Veritex acquisitions.
Consolidated Balance Sheet, Credit Quality, and Capital Ratios as of June 30, 2026 Compared to Prior Year End
Total assets at June 30, 2026 were $284.0 billion, an increase of $58.9 billion, or 26%, compared to
December 31, 2025. The increase in total assets was primarily driven by $51.3 billion of assets acquired as a result of
the completion of the Cadence acquisition, goodwill resulting from the Cadence acquisition, and organic loan
growth. Total liabilities at June 30, 2026 were $251.3 billion, an increase of $50.6 billion, or 25%, compared to
December 31, 2025. The increase in total liabilities was primarily driven by $46.5 billion of liabilities assumed as a
result of the completion of the Cadence acquisition, additional short- and long-term borrowings, and organic deposit
growth.
T1NPAs totaled $1.6 billion at June 30, 2026, an increase of $667 million, or 71%, from December 31, 2025, with
the increase due to $295 million of NPAs assumed in the Cadence acquisition and additional increases in commercial
and industrial, commercial real estate, and residential mortgage NALs. The ACL was $3.4 billion, or 1.78% of total
loans and leases, at June 30, 2026, an increase of $638 million compared to $2.7 billion, or 1.83% of total loans and
leases, at December 31, 2025. The increase in the ACL was driven by the ACL recorded for loans acquired in the
Cadence transaction, in addition to loan and lease growth, partially offset by a decrease in the overall ACL coverage
ratio.
Our shareholders’ equity to total assets ratio was 11.5% at June 30, 2026, compared to 10.8% at December 31,
2025. The tangible common equity to tangible assets ratio, a non-GAAP measure, was 7.1% at both June 30, 2026
and December 31, 2025, as an increase in tangible common equity from current period earnings, net of dividends,
and the impact of the Cadence acquisition, were offset by common share repurchases, a decline in AOCI, and an
increase in tangible assets. The CET1 risk-based capital ratio was 10.0% at June 30, 2026, compared to 10.4% at
December 31, 2025, with the decrease driven by higher risk-weighted assets, the impact of the Cadence acquisition,
and share repurchases, partially offset by an increase in regulatory capital from current period earnings, net of
dividends.
2026 2Q Form 10-Q 7
Table of Contents
General
Our general business objectives are to:
•Deliver our Culture, Purpose, and Vision through a Differentiated Operating Model;
•Build on our vision to be the leading People-First, Customer-Centered bank in the country;
•Deliver top quartile performance through sustainable long-term profitable growth;
•Differentiate our culture, brand, and customer experience through expanded product offerings to
drive digital acquisition, deepening, and retention, and leveraging partnerships and technology to
grow customers and market share;
•Leverage our regional banking model and national franchise to drive scale, growth and expansion;
•Anticipate evolving customer needs to drive profitable growth;
•Maintain positive operating leverage and execute disciplined capital management; and
•Provide stability and resilience through disciplined risk management, while maintaining an aggregate
moderate-to-low risk appetite.
Our quarterly results reflect continued strong execution, supported by growth in our legacy organization and the
successful integrations of Cadence and Veritex. Our robust liquidity, capital, and credit profiles allowed us to
continue to invest in deepening existing customer relationships, adding new business, and expanding our capabilities
and expertise. Credit performance remained strong, consistent with our aggregate moderate-to-low risk appetite.
Our balance sheet remains a source of strength, as demonstrated by the results of the recent CCAR stress test. With
our differentiated super regional bank model, which combines national expertise with local delivery, we continue to
accelerate organic growth across our core footprint and expansion markets, while remaining focused on driving our
proven flywheel of value creation to deliver sustained growth and long-term value for our customers, colleagues,
and shareholders.
Economy
Economic conditions during the second quarter proved resilient despite continued uncertainty tied to the U.S.-
Iran conflict. Consumer spending, business investment, and continued investment in artificial intelligence and
infrastructure supported economic activity, while geopolitical developments in the Middle East, elevated energy
prices, and increasing inflation expectations impacted business and consumer confidence. Labor market conditions
remained relatively stable, with continued payroll growth and unemployment remaining near historically low levels.
The Federal Reserve maintained its current monetary stance during the quarter, resulting in interest rates
remaining elevated relative to historical levels. Persistent inflation alongside a solid labor market shifted market
expectations away from rate cuts and toward a potential rate increase in the second half of the year.
Economic growth expectations remain positive, although risks persist related to inflation, monetary policy,
geopolitical developments, and broader economic conditions.
8 Huntington Bancshares Incorporated
Table of Contents
DISCUSSION OF RESULTS OF OPERATIONS
This section provides a review of financial performance on a consolidated basis. Key unaudited interim
consolidated balance sheet and unaudited interim income statement trends are discussed. All earnings per share
data are reported on a diluted basis. For additional insight on financial performance, please read this section in
conjunction with the “Business Segment Discussion.”
Quarterly Average Balance Sheet / Net Interest Income
The following table details the change in our quarterly average balance sheet and the net interest margin.
Table 2 - Consolidated Quarterly Average Balance Sheet and Net Interest Margin Analysis
Three Months Ended June 30, 2026
Three Months Ended June 30, 2025
Average
Interest
Income/
Expense
Yield/
Average
Interest
Income/
Expense
Yield/
Change in Average
Balances
(dollar amounts in millions)
Balances
(FTE) (1)
Rate (1)(2)
Balances
(FTE) (1)
Rate (1)(2)
Amount
Percent
Assets:
Interest-earning deposits with banks
$16,977
$156
3.67%
$12,264
$139
4.52%
$4,713
38%
Trading account assets
281
3
3.97
634
6
3.72
(353)
(56)
Investment and other securities:
Available-for-sale securities:
Taxable
31,486
285
3.62
24,015
278
4.62
7,471
31
Tax-exempt
3,487
43
4.92
3,251
41
4.93
236
7
Total available-for-sale securities
34,973
328
3.75
27,266
319
4.66
7,707
28
Held-to-maturity securities—taxable
14,571
97
2.65
16,130
107
2.66
(1,559)
(10)
Other securities
1,369
17
5.00
881
12
5.85
488
55
Total investment and other securities
50,913
442
3.47
44,277
438
3.95
6,636
15
Loans held for sale
1,174
19
6.16
746
12
6.43
428
57
Loans and leases (3):
Commercial:
Commercial and industrial
90,371
1,336
5.85
59,393
914
6.09
30,978
52
Commercial real estate
23,925
370
6.12
10,785
183
6.71
13,140
122
Lease financing
5,726
101
6.98
5,458
92
6.66
268
5
Total commercial
120,022
1,807
5.96
75,636
1,189
6.22
44,386
59
Consumer:
Residential mortgage
33,515
404
4.81
24,423
253
4.15
9,092
37
Automobile
15,650
229
5.87
15,132
219
5.82
518
3
Home equity
11,878
202
6.85
10,196
186
7.32
1,682
16
RV and marine
5,646
76
5.44
5,921
79
5.31
(275)
(5)
Other consumer
2,544
64
10.09
1,863
51
10.88
681
37
Total consumer
69,233
975
5.65
57,535
788
5.49
11,698
20
Total loans and leases
189,255
2,782
5.84
133,171
1,977
5.91
56,084
42
Total earning assets
258,600
3,402
5.28
191,092
2,572
5.40
67,508
35
Cash and due from banks
2,036
1,407
629
45
Goodwill and other intangible assets
10,468
5,640
4,828
86
All other assets
13,377
9,713
3,664
38
Total assets
$284,481
$207,852
$76,629
37%
Liabilities and shareholders’ equity:
Interest-bearing deposits:
Demand deposits—interest-bearing
$62,388
$285
1.83%
$44,677
$223
2.00%
$17,711
40%
Money market deposits
75,309
493
2.62
61,090
464
3.05
14,219
23
Savings deposits
18,940
39
0.83
15,127
11
0.28
3,813
25
Time deposits
26,758
231
3.46
13,290
124
3.74
13,468
101
Total interest-bearing deposits
183,395
1,048
2.29
134,184
822
2.46
49,211
37
Short-term borrowings
1,887
18
3.65
1,261
13
4.37
626
50
Long-term debt
20,971
264
5.06
17,776
254
5.69
3,195
18
Total interest-bearing liabilities
206,253
1,330
2.59
153,221
1,089
2.85
53,032
35
Demand deposits—noninterest-bearing
40,008
29,245
10,763
37
All other liabilities
5,620
4,788
832
17
Total liabilities
251,881
187,254
64,627
35
Total Huntington shareholders’ equity
32,555
20,548
12,007
58
Non-controlling interest
45
50
(5)
(10)
Total equity
32,600
20,598
12,002
58
Total liabilities and equity
$284,481
$207,852
$76,629
37%
Net interest rate spread
2.69
2.55
Impact of noninterest-bearing funds on NIM
0.52
0.56
NII/NIM (FTE)
$2,072
3.21%
$1,483
3.11%
(1)Calculated on an FTE basis, which represents a non-GAAP measure, assuming a 21% tax rate.
(2)Yield/rates include the impact of applicable derivatives. Loan and lease and deposit average yield/rates also include the impact of applicable non-
deferrable and amortized fees.
(3)For purposes of this analysis, NALs are reflected in the average balances of loans and leases.
2026 2Q Form 10-Q 9
Table of Contents
Quarterly Net Interest Income
Net interest income for the second quarter of 2026 increased $585 million, or 40%, from the second quarter of
2025. FTE net interest income, a non-GAAP financial measure, for the second quarter of 2026 increased $589
million, or 40%, from the second quarter of 2025. The increase in FTE net interest income primarily reflected a $67.5
billion, or 35%, increase in average earning assets and a 10 basis point increase in the FTE NIM to 3.21%, partially
offset by a $53.0 billion, or 35%, increase in average interest-bearing liabilities. The increases in average earning
assets and average interest-bearing liabilities were attributable to a combination of the Cadence and Veritex
acquisitions and organic growth. The increase in the NIM was driven by lower funding costs, partially offset by lower
yields on interest earning assets.
Quarterly Average Balance Sheet
Average assets for the second quarter of 2026 were $284.5 billion, an increase of $76.6 billion, or 37%, from the
second quarter of 2025. Average assets were impacted by $51.3 billion of total assets acquired in connection with
the Cadence transaction which was effective February 1, 2026, and $12.0 billion of total assets acquired in
connection with the Veritex transaction which was effective October 20, 2025. The increase in average assets was
primarily due to increases in average loans and leases of $56.1 billion, or 42%, average investment and other
securities of $6.6 billion, or 15%, average goodwill and other intangible assets of $4.8 billion, or 86%, and average
interest-earning deposits with banks of $4.7 billion, or 38%. The increase in average loans and leases, inclusive of
acquired Cadence and Veritex loans and leases, included growth in average commercial loans and leases of $44.4
billion, or 59%, and average consumer loans of $11.7 billion, or 20%. The Cadence acquisition added $36.9 billion of
loans as of the acquisition date, including $26.4 billion of commercial loans and $10.5 billion of consumer loans. The
Veritex acquisition added $9.3 billion of loans as of the acquisition date, including $8.2 billion of commercial loans
and $1.1 billion of consumer loans.
Average liabilities for the second quarter of 2026 increased $64.6 billion, or 35%, from the second quarter of
2025. Average liability increases were also impacted by the Cadence and Veritex acquisitions. The increase in
average liabilities was primarily due to increases in average deposits of $60.0 billion, or 37%, and average total
borrowings of $3.8 billion, or 20%. The increase in average deposits included an increase in average interest-bearing
deposits of $49.2 billion, or 37%, primarily due to increases in average money market, interest-bearing demand, and
time deposits, and an increase in noninterest-bearing deposits of $10.8 billion, or 37%. The increase in average total
borrowings was driven by holding company and bank debt issuances, an increase in FHLB borrowings, and CLN
transactions over the last year. The Cadence acquisition added $43.5 billion of deposits as of the acquisition date,
including $8.8 billion of noninterest-bearing deposits and $34.7 billion of interest-bearing deposits. The Veritex
acquisition added $10.5 billion of deposits as of the acquisition date, including $2.4 billion of noninterest-bearing
deposits and $8.1 billion of interest-bearing deposits. Following completion of the acquisitions, certain higher-cost
acquired Cadence and Veritex deposits were allowed to run-off in order to optimize our funding mix.
Average shareholders’ equity for the second quarter of 2026 increased $12.0 billion, or 58%, from the second
quarter of 2025, primarily due to the impact of common stock issued in connection with the Cadence and Veritex
acquisitions, earnings, net of dividends, and the impact of issued and acquired preferred stock.
10 Huntington Bancshares Incorporated
Table of Contents
Year-to-Date Average Balance Sheet / Net Interest Income
The following table details the change in our year-to-date average balance sheet and the net interest margin.
Table 3 - Consolidated YTD Average Balance Sheet and Net Interest Margin Analysis
Six Months Ended June 30, 2026
Six Months Ended June 30, 2025
Average
Interest
Income/
Expense
Yield/
Average
Interest
Income/
Expense
Yield/
Change in Average
Balances
(dollar amounts in millions)
Balances
(FTE) (1)
Rate (1)(2)
Balances
(FTE) (1)
Rate (1)(2)
Amount
Percent
Assets:
Interest-earning deposits with banks
$16,309
$297
3.65%
$11,950
$268
4.49%
4,359
36
Trading account assets
258
5
3.84
561
10
3.70
(303)
(54)
Investment and other securities:
Available-for-sale securities:
Taxable
29,784
543
3.65
24,130
565
4.68
5,654
23
Tax-exempt
3,464
85
4.89
3,252
83
5.08
212
7
Total available-for-sale securities
33,248
628
3.77
27,382
648
4.73
5,866
21
Held-to-maturity securities—taxable
14,772
196
2.65
16,243
215
2.65
(1,471)
(9)
Other securities
1,295
33
5.08
879
24
5.57
416
47
Total investment and other securities
49,315
857
3.47
44,504
887
3.98
4,811
11
Loans held for sale
1,182
37
6.18
665
21
6.45
517
78
Loans and leases (3):
Commercial:
Commercial and industrial
85,978
2,527
5.85
58,478
1,787
6.08
27,500
47
Commercial real estate
22,539
697
6.15
10,902
368
6.71
11,637
107
Lease financing
5,740
200
6.92
5,467
181
6.57
273
5
Total commercial
114,257
3,424
5.96
74,847
2,336
6.21
39,410
53
Consumer:
Residential mortgage
31,962
757
4.74
24,362
503
4.13
7,600
31
Automobile
15,852
461
5.87
14,900
426
5.77
952
6
Home equity
11,603
395
6.87
10,160
369
7.33
1,443
14
RV and marine
5,639
152
5.44
5,936
157
5.32
(297)
(5)
Other consumer
2,464
122
9.99
1,818
99
10.94
646
36
Total consumer
67,520
1,887
5.62
57,176
1,554
5.47
10,344
18
Total loans and leases
181,777
5,311
5.83
132,023
3,890
5.89
49,754
38
Total earning assets
248,841
6,507
5.27
189,703
5,076
5.40
59,138
31
Cash and due from banks
1,908
1,406
502
36
Goodwill and other intangible assets
9,825
5,646
4,179
74
All other assets
12,813
9,722
3,091
32
Total assets
$273,387
$206,477
$66,910
32%
Liabilities and shareholders’ equity:
Interest-bearing deposits:
Demand deposits—interest-bearing
$57,711
$531
1.86%
$44,132
$428
1.96%
$13,579
31%
Money market deposits
75,263
939
2.52
60,654
922
3.06
14,609
24
Savings deposits
18,489
69
0.76
14,998
18
0.24
3,491
23
Time deposits
24,822
429
3.48
13,639
264
3.90
11,183
82
Total interest-bearing deposits
176,285
1,968
2.25
133,423
1,632
2.47
42,862
32
Short-term borrowings
1,816
34
3.73
1,350
27
4.10
466
35
Long-term debt
20,611
523
5.07
17,341
493
5.68
3,270
19
Total interest-bearing liabilities
198,712
2,525
2.56
152,114
2,152
2.85
46,598
31
Demand deposits—noninterest-bearing
37,776
29,096
8,680
30
All other liabilities
5,623
4,944
679
14
Total liabilities
242,111
186,154
55,957
30
Total Huntington shareholders’ equity
31,233
20,274
10,959
54
Non-controlling interest
43
49
(6)
(12)
Total equity
31,276
20,323
10,953
54
Total liabilities and equity
$273,387
$206,477
$66,910
32%
Net interest rate spread
2.71
2.55
Impact of noninterest-bearing funds on NIM
0.52
0.56
NII/NIM (FTE)
$3,982
3.23%
$2,924
3.11%
(1)Calculated on an FTE basis, which represents a non-GAAP measure, assuming a 21% tax rate.
(2)Yield/rates include the impact of applicable derivatives. Loan and lease and deposit average yield/rates also include the impact of applicable non-
deferrable and amortized fees.
(3)For purposes of this analysis, NALs are reflected in the average balances of loans and leases.
2026 2Q Form 10-Q 11
Table of Contents
Year-to-Date Net Interest Income
Net interest income for the first six-month period of 2026 increased $1.1 billion, or 36%, from the year-ago
period. FTE net interest income, a non-GAAP financial measure, for the first six-month period of 2026 also increased
$1.1 billion, or 36%, from the year-ago period. The increase in FTE net interest income reflected a 12 basis point
increase in the FTE NIM to 3.23% and a $59.1 billion, or 31%, increase in average total earning assets, partially offset
by a $46.6 billion, or 31%, increase in interest-bearing liabilities. The higher NIM was driven by lower funding costs,
partially offset by the decrease in yields on interest earning assets.
Year-to-Date Average Balance Sheet
Average assets for the first six-month period of 2026, inclusive of the impacts of the Cadence and Veritex
acquisitions, were $273.4 billion, an increase of $66.9 billion, or 32%, from the year-ago period, with the increase
primarily due to increases in average loans and leases of $49.8 billion, or 38%, total investment and other securities
of $4.8 billion, or 11%, and average interest-earning deposits with banks of $4.4 billion, or 36%. The increase in
average loans and leases included growth in average commercial loans and leases of $39.4 billion, or 53%, and
average consumer loans of $10.3 billion, or 18%.
Average liabilities for the first six-month period of 2026, inclusive of the impacts of the Cadence and Veritex
acquisitions, increased $56.0 billion, or 30%, from the year-ago period, primarily due to increases in average deposits
of $51.5 billion, or 32%, and in average total borrowings of $3.7 billion or 20%. Average deposits increased due to an
increase in average interest-bearing deposits of $42.9 billion, or 32%, primarily driven by increases in average money
market, interest-bearing demand, time, and savings deposits, and an increase in noninterest-bearing deposits of
$8.7 billion, or 30%. The increase in average total borrowings was driven by an increase in short- and long-term FHLB
advances and long-term debt issuances used to support asset growth.
Average shareholders’ equity for the first six-month period of 2026 increased $11.0 billion, or 54%, from the
year-ago period primarily due to the impact of common stock issued in connection with the Cadence and Veritex
acquisitions, earnings, net of dividends and the impact of issued and acquired preferred stock.
Provision for Credit Losses
(This section should be read in conjunction with the “Credit Risk” section.)
The provision for credit losses for the second quarter of 2026 was $132 million, an increase of $29 million, or
28%, compared to the second quarter of 2025. The provision for credit losses for the first six-month period of 2026
was $290 million, an increase of $72 million, or 33%, compared to the year-ago period. The increase in provision
expense in the second quarter of 2026, compared to the second quarter of 2025, and for the first six months of
2026, compared to the year-ago period, is reflective of loan growth and higher net loan charge-offs, partially offset
by a lower overall reserve coverage. The provision for credit losses is also impacted by fluctuations in the provision
for unfunded lending commitments.
The following table presents the components of the provision for credit losses.
Table 4 - Provision for Credit Losses
Three Months Ended
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Provision for loan and lease losses
$125
$134
$375
$239
Provision (benefit) for unfunded lending commitments
7
(31)
(85)
(18)
Provision (benefit) for securities
—
—
—
(3)
Total provision for credit losses
$132
$103
$290
$218
12 Huntington Bancshares Incorporated
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Noninterest Income
The following table reflects noninterest income for each of the periods presented.
Table 5 - Noninterest Income
Three Months Ended
Six Months Ended
June 30,
June 30,
Change
June 30,
June 30,
Change
(dollar amounts in millions)
2026
2025
Percent
2026
2025
Percent
Payments and cash management revenue
$204
$165
24%
$391
$320
22%
Wealth and asset management revenue
134
102
31
254
203
25
Customer deposit and loan fees
128
95
35
238
181
31
Capital markets and advisory fees
140
84
67
272
151
80
Mortgage banking income
53
28
89
85
59
44
Insurance income
21
19
11
42
39
8
Leasing revenue
29
10
190
42
24
75
Net gains (losses) on sales of securities
2
(58)
103
15
(58)
126
Other noninterest income
74
26
185
128
46
178
Total noninterest income
$785
$471
67%
$1,467
$965
52%
Noninterest income for the second quarter of 2026 was $785 million, an increase of $314 million, or 67%, from
the year-ago quarter, inclusive of the impact of the Cadence and Veritex acquisitions. Capital markets and advisory
fees increased $56 million, or 67%, primarily due to higher advisory fees from the legacy business and the impact of
three strategic business units acquired from Janney, in addition to higher syndication fees. Payments and cash
management revenue increased $39 million, or 24%, driven by higher cash management and interchange revenue.
Customer deposit and loan fees increased $33 million, or 35%, primarily due to an increase in commitment fees and
the volume of personal service charges. Wealth and asset management revenue increased $32 million, or 31%,
primarily due to higher investment management and trust income. Mortgage banking income increased $25 million,
or 89%, due to an increase in net origination and secondary marketing income. Other noninterest income increased
$48 million largely due to the net impact of credit risk transfer transactions, favorable valuation changes on strategic
and other investments, and an increase in bank owned life insurance income. Lastly, the second quarter of 2025
included a $58 million loss from the sale of certain investment securities as part of ongoing portfolio positioning.
Noninterest income for the first six-month period of 2026 increased $502 million, or 52%, from the year-ago
period, inclusive of the impact of the Cadence and Veritex acquisitions. Capital markets and advisory fees increased
$121 million, or 80%, primarily due to higher advisory fees and the impact of three strategic business units acquired
from Janney, in addition to higher syndication and underwriting fees. Payments and cash management revenue
increased $71 million, or 22%, reflecting higher cash management and interchange revenue. Customer deposit and
loan fees increased $57 million, or 31%, primarily reflecting an increase in the volume of personal service charges
and an increase in commitment fees. Wealth and asset management revenue increased $51 million, or 25%,
reflecting higher investment management and trust income. Mortgage banking income increased $26 million, or
44%, due to an increase in net origination and secondary marketing income. Other noninterest income increased
$82 million, or 178%, primarily due to the net impact of credit risk transfer transactions, favorable valuation changes
on strategic and other investments, and an increase in bank owned life insurance income. In addition, the first six-
month period of 2026 included a $15 million gain from the sale of certain investment securities compared to a $58
million loss from the year-ago period, both as part of ongoing portfolio positioning.
2026 2Q Form 10-Q 13
Table of Contents
Noninterest Expense
The following table reflects noninterest expense for each of the periods presented.
Table 6 - Noninterest Expense
Three Months Ended
Six Months Ended
June 30,
June 30,
Change
June 30,
June 30,
Change
(dollar amounts in millions)
2026
2025
Percent
2026
2025
Percent
Personnel costs
$1,010
$722
40%
$2,002
$1,393
44%
Outside data processing and other services
326
182
79
637
352
81
Equipment
96
68
41
189
135
40
Net occupancy
90
54
67
175
119
47
Professional services
31
22
41
75
44
70
Marketing
38
28
36
75
57
32
Deposit and other insurance expense
38
20
90
73
57
28
Amortization of intangibles
54
11
391
95
22
332
Lease financing equipment depreciation
2
2
—
5
6
(17)
Other noninterest expense
124
88
41
257
164
57
Total noninterest expense
$1,809
$1,197
51%
$3,583
$2,349
53%
Number of employees (average full-time
equivalent)
26,407
20,242
30%
25,527
20,166
27%
T2Noninterest expense in the second quarter of 2026 was $1.8 billion, an increase of $612 million, or 51%, from
the year-ago quarter. Noninterest expense for the first six-month period of 2026 was $3.6 billion, an increase of $1.2
billion, or 53%, from the year-ago period. Noninterest expense for the second quarter of 2026 and for the first six-
month period of 2026 included $152 million and $415 million, respectively, of acquisition-related expenses, as
detailed in the following table. There were no acquisition-related expenses in the first six months of 2025.
Table 7 - Impact of Acquisition-related Expenses
Three Months Ended
Six Months Ended
June 30,
June 30,
(dollar amounts in millions)
2026
2026
Personnel costs
$38
$135
Outside data processing and other services
74
162
Equipment
15
34
Net occupancy
2
4
Professional services
4
22
Marketing
8
14
Deposit and other insurance expense
7
7
Other noninterest expense
4
37
Total impact of acquisition-related expenses
$152
$415
Excluding acquisition-related expenses, noninterest expense for the second quarter of 2026 was $1.7 billion, an
increase of $460 million, or 38%, from the year-ago quarter, inclusive of the impact of the Cadence and Veritex
acquisitions. Personnel costs increased $250 million, or 35%, primarily due to higher salary, benefit, and incentive
compensation expense. Outside data processing and other services increased $70 million, or 38%, primarily
reflecting higher technology and data expense. Amortization of intangibles increased $43 million primarily due to
the impact from the addition of core deposit intangibles from the acquisitions. Net occupancy increased $34 million,
or 63%, largely due to increases in lease and depreciation expense. Other noninterest expense increased $32 million,
or 36%, primarily due to an increased volume of expense activity driven by the impact of the acquisitions.
14 Huntington Bancshares Incorporated
Table of Contents
Excluding acquisition-related expenses, noninterest expense for the first six-month period of 2026 was $3.2
billion, an increase of $819 million, or 35%, from the year-ago period, inclusive of the impact of the Cadence and
Veritex acquisitions. Personnel costs increased $474 million, or 34%, primarily due to higher salary, benefit, and
incentive compensation expense. Outside data processing increased $123 million, or 35%, primarily due to higher
technology and data expense. Amortization of intangibles increased $73 million primarily due to the impact from the
addition of core deposit intangibles from the acquisitions. Net occupancy expense increased $52 million, or 44%,
primarily due to increases in lease and depreciation expense. Equipment expense increased $20 million, or 15%,
primarily due to an increase in depreciation expense. Other noninterest expense increased $56 million, or 34%,
primarily due to an increased volume of expense activity driven by the impact of the acquisitions.
Provision for Income Taxes
The provision for income taxes and effective tax rate were $165 million and 18.4%, respectively, in the second
quarter of 2026, compared to $96 million and 15.0%, respectively, in the second quarter of 2025. The provision for
income taxes and effective tax rate were $279 million and 18.1%, respectively, for the six-month period ended
June 30, 2026, compared to $218 million and 16.8%, respectively, for the six-month period ended June 30, 2025. The
increases in the effective tax rates in both current year periods, compared to the prior year periods, related primarily
to higher income before taxes in the current year periods and the benefit from remeasurement of deferred tax
assets for changes in certain state tax laws which were enacted in the prior year periods. All periods included the
benefits from general business credits, tax-exempt income, tax-exempt bank-owned life insurance income, and
investments in qualified affordable housing projects.
The net federal deferred tax asset was $1.3 billion and the net state deferred tax asset was $129 million at
June 30, 2026, compared to a net federal deferred tax asset of $856 million and a net state deferred tax asset of $92
million at December 31, 2025.
We file income tax returns with the IRS and various state, city, and foreign jurisdictions. Federal income tax
audits have been completed for tax years through 2019. The 2020-2024 tax years remain open under the statute of
limitations. Also, with few exceptions, the Company is no longer subject to state, city, or foreign income tax
examinations for tax years before 2021.
RISK MANAGEMENT
Our Risk Governance Framework and Risk Appetite Statement are foundational to the risk management
program. The Risk Governance Framework defines the three lines of defense structure, roles, responsibilities, and
requirements. The Risk Appetite Statement is approved by our Board and defines the level and types of risks we are
willing to assume to achieve our corporate objectives through defined risk limits for the key risk categories to which
we are exposed: credit, market, liquidity, operational, compliance, and strategic. More information on our risk
management can be found in Item 1A: Risk Factors, the Risk Factors section included in Item 1A of our 2025 Annual
Report on Form 10-K, and subsequent filings with the SEC. Our definition, philosophy, and approach to risk
management have not materially changed from the discussion presented in the 2025 Annual Report on Form 10-K.
Credit Risk
Credit risk is the risk of financial loss if a counterparty is not able to meet the agreed upon terms of the financial
obligation. The majority of our credit risk is associated with lending activities, as the acceptance and management of
credit risk is central to profitable lending. A number of other products expose the Company to credit risk, including
investment securities and derivatives. Credit exposure is limited to the sum of the aggregate fair value of positions
that have become favorable to us, including any accrued interest receivable due from counterparties. Potential
credit losses are mitigated by derivatives through central clearing parties, careful evaluation of counterparty credit
standing, selection of counterparties from a limited group of high quality institutions, collateral agreements, and
other contract provisions.
2026 2Q Form 10-Q 15
Table of Contents
We focus on the early identification, monitoring, and management of all aspects of our credit risk. In addition to
the traditional credit risk mitigation strategies of credit policies and processes, market risk management activities,
and portfolio diversification, we use quantitative measurement capabilities utilizing external data sources, enhanced
modeling technology, and internal stress testing processes. Our disciplined portfolio management processes are
central to our commitment to maintaining an aggregate moderate-to-low risk appetite. In our efforts to identify risk
mitigation techniques, we have focused on product design features, origination policies, and solutions for delinquent
or stressed borrowers.
Loan and Lease Credit Exposure Mix
Refer to the “Loan and Lease Credit Exposure Mix” section of our 2025 Annual Report on Form 10-K for a
description of each portfolio segment.
At June 30, 2026, our loans and leases totaled $189.4 billion, representing a $39.8 billion, or 27%, increase
compared to $149.6 billion at December 31, 2025. The increase was driven by a combination of the Cadence
acquisition and organic growth. As of the Cadence acquisition date, acquired loans totaled $36.9 billion, including
$17.4 billion of commercial and industrial loans, $9.4 billion of commercial real estate loans, $131 million of lease
financing loans, $8.2 billion of residential mortgage loans, $1.5 billion of home equity loans, and $264 million of
other consumer loans.
The table below provides the composition of our total loan and lease portfolio.
Table 8 - Loan and Lease Portfolio Composition
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
Commercial:
Commercial and industrial
$91,378
49%
$69,442
46%
Commercial real estate
23,457
12
15,209
10
Lease financing
5,714
3
5,727
4
Total commercial
120,549
64
90,378
60
Consumer:
Residential mortgage
33,221
18
24,777
17
Automobile
15,460
8
16,168
11
Home equity
11,884
6
10,395
7
RV and marine
5,706
3
5,682
4
Other consumer
2,602
1
2,242
1
Total consumer
68,873
36
59,264
40
Total loans and leases
$189,422
100%
$149,642
100%
Our loan and lease portfolio is a managed mix of consumer and commercial credits. We manage the overall
credit exposure and portfolio composition via a credit concentration policy. The policy designates specific loan types,
collateral types, and loan structures to be formally tracked and assigned maximum exposure limits as a percentage
of capital. Commercial lending by NAICS categories, specific limits for CRE project types, loans secured by residential
real estate, large dollar exposures, and designated high risk loan categories represent examples of specifically
tracked components of our concentration management process. As of June 30, 2026, there were no identified
concentrations that exceed the assigned exposure limit. Our concentration management policy is approved by the
ROC and is used to ensure a high quality, well diversified portfolio that is consistent with our overall objective of
maintaining an aggregate moderate-to-low risk appetite. Changes to existing concentration limits and incorporating
specific information relating to the potential impact on the overall portfolio composition and performance metrics
require the approval of the ROC prior to implementation.
16 Huntington Bancshares Incorporated
Table of Contents
The table below provides our total loan and lease portfolio segregated by industry type. The changes in the
industry composition from December 31, 2025 are consistent with the portfolio growth metrics.
Table 9 - Loan and Lease Portfolio by Industry Type
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
Commercial loans and leases:
Real estate and rental and leasing
$28,802
15%
$20,237
14%
Finance and insurance
15,922
9
10,489
7
Retail trade (1)
13,119
7
12,181
8
Manufacturing
8,706
5
8,265
6
Health care and social assistance
7,705
4
5,920
4
Wholesale trade
6,314
3
5,842
4
Accommodation and food services
6,293
3
4,228
3
Construction
4,756
3
2,369
2
Utilities
4,506
2
3,156
2
Transportation and warehousing
4,327
2
3,288
2
Other services
3,552
2
3,617
2
Professional, scientific, and technical services
3,180
2
2,296
2
Information
2,887
2
1,937
1
Arts, entertainment, and recreation
2,537
2
1,923
1
Admin./support/waste mgmt. and remediation services
2,402
1
1,844
1
Management of companies and enterprises
1,217
1
243
—
Public administration
1,097
1
816
1
Educational services
895
—
738
—
Agriculture, forestry, fishing, and hunting
862
—
410
—
Mining, quarrying, and oil and gas extraction
734
—
147
—
Unclassified/Other
736
—
432
—
Total commercial loans and leases by industry category
120,549
64
90,378
60
Residential mortgage
33,221
18
24,777
17
Automobile
15,460
8
16,168
11
Home equity
11,884
6
10,395
7
RV and marine
5,706
3
5,682
4
Other consumer loans
2,602
1
2,242
1
Total loans and leases
$189,422
100%
$149,642
100%
(1)Amounts include $5.8 billion and $4.3 billion of auto dealer services loans at June 30, 2026 and December 31, 2025, respectively.
The following tables present our commercial real estate portfolio by property type and geographic location.
Table 10 - Commercial Real Estate Portfolio by Property Type
At June 30, 2026
At December 31, 2025
(dollar amounts in millions)
Amount by
Property Type
% of Total Loans
and Leases
Amount by
Property Type
% of Total Loans
and Leases
Multi-family
$6,733
4%
$4,822
3%
Warehouse/Industrial
4,629
2
3,054
2
Retail
3,536
2
2,224
1
Office
2,633
1
1,804
1
Hotel
1,904
1
1,438
1
Other
4,022
2
1,867
1
Total commercial real estate loans and leases
$23,457
12%
$15,209
9%
2026 2Q Form 10-Q 17
Table of Contents
Table 11 - Commercial Real Estate Portfolio by Geographic Location
At June 30, 2026
At December 31, 2025
(dollar amounts in millions)
Amount by
Location (1)
% of Total CRE
Loans and Leases
Amount by
Location (1)
% of Total CRE
Loans and Leases
Texas
$7,090
30%
$4,090
27%
Ohio
2,331
10
2,176
14
Michigan
1,782
8
1,872
12
Florida
1,714
7
830
5
Georgia
1,479
6
347
2
Illinois
724
3
787
5
Alabama
702
3
186
1
Colorado
625
3
555
4
Tennessee
485
2
73
—
North Carolina
483
2
269
2
Other
6,042
26
4,024
28
Total commercial real estate loans and leases
$23,457
100%
$15,209
100%
(1)Geographic location based on location of underlying collateral.
Our CRE portfolio totaled $23.5 billion at June 30, 2026, an increase of $8.2 billion, or 54%, compared to
December 31, 2025, driven by $9.4 billion of loans acquired as a result of the completion of the Cadence acquisition.
The CRE portfolio had an associated allowance coverage of 3.4% and 3.7% at June 30, 2026 and December 31, 2025,
respectively.
Credit Quality
(This section should be read in conjunction with Note 5 - “Loans and Leases” and Note 6 - “Allowance for Credit
Losses” of the Notes to Unaudited Consolidated Financial Statements.)
We believe the most meaningful way to assess overall credit quality performance is through an analysis of
specific performance ratios. This approach forms the basis of the discussion in the sections immediately following:
NALs and NPAs, ACL, and NCOs. In addition, we utilize delinquency rates, risk distribution and migration patterns,
product segmentation, and origination trends in the analysis of our credit quality performance.
18 Huntington Bancshares Incorporated
Table of Contents
NALs and NPAs
The following table presents the details of our NALs and NPAs.
Table 12 - Nonaccrual Loans and Leases and Nonperforming Assets
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
Nonaccrual loans and leases (NALs):
Commercial and industrial
$986
$562
Commercial real estate
243
133
Lease financing
8
8
Residential mortgage
223
107
Automobile
7
6
Home equity
120
113
RV and marine
2
2
Total nonaccrual loans and leases
1,589
931
Other real estate, net
23
13
Other NPAs (1)
—
1
Total nonperforming assets
$1,612
$945
Nonaccrual loans and leases as a % of total loans and leases
0.84%
0.62%
NPA ratio (2)
0.85
0.63
(1)Other nonperforming assets include certain impaired investment securities and/or nonaccrual loans held-for-sale.
(2)Nonperforming assets divided by the sum of loans and leases, other real estate owned, and other NPAs.
NPAs totaled $1.6 billion at June 30, 2026, an increase of $667 million, or 71%, from December 31, 2025, with
the increase primarily due to $295 million of NPAs assumed in the Cadence acquisition and additional increases in
commercial and industrial, commercial real estate, and residential mortgage NALs.
ACL
Our ACL is comprised of two different components, the ALLL and the AULC, both of which in our judgment are
appropriate to absorb lifetime expected credit losses in our loan and lease portfolio. We utilize an independent
third-party forecast that projects future economic conditions and considers multiple macroeconomic scenarios.
These macroeconomic scenarios contain certain variables that are influential to our modeling process, the most
significant being unemployment rates and GDP.
For purposes of determining our ACL at June 30, 2026, we utilized a baseline economic scenario that assumes
the labor market has softened, with the unemployment rate peaking at 4.6% in the fourth quarter of 2026 and
expected to remain elevated at 4.6% in the first half of 2027. The Federal Reserve is projected to continue the
current cycle of rate cuts, but cuts are expected later in 2026 and 2027, with the federal funds rate projected to
return to 3% by 2028. Inflation is forecasted to remain above the Federal Reserve’s target level of 2%, with inflation
still at or near 3% by the end of 2026. Forecasted GDP growth moderated from the first quarter, with growth
projected at approximately 2.2% in 2026 before easing below 2% in 2027. The economic outlook became more
uncertain during the second quarter as energy prices remained above prior expectations, while ongoing
developments in the Middle East present risks to the outlook and contribute to elevated uncertainty.
2026 2Q Form 10-Q 19
Table of Contents
The table below shows the forecasted path of unemployment and GDP in the baseline economic scenario
compared to the end of 2025.
Table 13 - Forecasted Key Macroeconomic Variables
2025
2026
2027
Baseline scenario forecast
Q4
Q2
Q4
Q2
Q4
Unemployment rate (1)
2Q 2026
N/A
4.3
4.6
4.6
4.5
4Q 2025
4.3%
4.6%
4.8%
4.7%
4.6%
Gross Domestic Product (1)
2Q 2026
N/A
2.6
1.6
1.8
1.9
4Q 2025
0.5%
2.3%
1.8%
1.9%
2.0%
(1)Values reflect the baseline scenario forecast inputs for each period presented, not updated for subsequent actual amounts.
T3Management continues to assess the uncertainty in the macroeconomic environment, including ongoing risks in
the commercial real estate environment, current inflation levels, the impacts of U.S. trade policies, including tariffs,
the impact of higher oil prices, political uncertainty, and geopolitical instability, considering multiple macroeconomic
forecasts that reflect a range of possible outcomes. While we have incorporated estimates of economic uncertainty
into our ACL, the ultimate impact that specific challenges will have on the economy remains unknown.
Management develops additional analytics to support adjustments to our modeled results. Our Allowance for
Credit Loss Development Methodology Committee reviewed model results of each economic scenario for
appropriate usage, concluding that the quantitative transaction reserve will continue to utilize scenario weighting.
Given the uncertainty associated with key economic scenario assumptions, the June 30, 2026 ACL included a general
reserve that consists of various risk profile components, including profiles to capture uncertainty not addressed
within the quantitative transaction reserve.
The most significant risk profile components included within our qualitative reserve at June 30, 2026 relate to
business banking loans, including SBA guaranteed loans, and leveraged lending within the C&I portfolio. The
business banking risk profile addresses a modest upward trend in default rates resulting from the current interest
rate environment and inflationary impacts on customers. The leveraged lending risk profile addresses concerns
relating to the current interest rate environment and macroeconomic environment.
Our ACL evaluation process includes the on-going assessment of credit quality metrics and a comparison of
certain ACL benchmarks to current performance.
20 Huntington Bancshares Incorporated
Table of Contents
The table below reflects the allocation of our ACL among our various loan and lease categories as well as certain
coverage metrics of the reported ALLL and ACL.
Table 14 - Allocation of Allowance for Credit Losses
At June 30, 2026
At December 31, 2025
(dollar amounts in millions)
Allocation of
Allowance
% of Total ALLL
% of Total Loans
and Leases (1)
Allocation of
Allowance
% of Total ALLL
% of Total Loans
and Leases (1)
Commercial
Commercial and industrial
$1,443
44%
49%
$1,070
42%
46%
Commercial real estate
800
25
12
569
22
10
Lease financing
96
3
3
92
4
4
Total commercial
2,339
72
64
1,731
68
60
Consumer
Residential mortgage
259
8
18
205
9
17
Automobile
169
5
8
181
7
11
Home equity
174
5
6
149
6
7
RV and marine
129
4
3
136
5
4
Other consumer
179
6
1
135
5
1
Total consumer
910
28
36
806
32
40
Total ALLL
3,249
2,537
AULC
132
206
Total ACL
$3,381
$2,743
Total ALLL as a % of:
Total loans and leases
1.72%
1.70%
Nonaccrual loans and leases
204
272
NPAs
202
269
Total ACL as % of:
Total loans and leases
1.78%
1.83%
Nonaccrual loans and leases
213
295
NPAs
210
290
(1)Percentages represent the percentage of each loan and lease category to total loans and leases.
At June 30, 2026, the ACL was $3.4 billion, or 1.78% of total loans and leases, compared to $2.7 billion, or 1.83%,
at December 31, 2025. The increase in the ACL was driven by $578 million of ACL recorded for loans and
commitments acquired in the Cadence transaction, as well as organic loan and lease growth. The ACL coverage ratio
at June 30, 2026 is reflective of the current macroeconomic forecast and changes in various risk profiles intended to
capture uncertainty not addressed within the quantitative reserve.
2026 2Q Form 10-Q 21
Table of Contents
NCOs
The table below reflects NCO detail.
Table 15 - Net Charge-off Analysis
Three Months Ended
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Net charge-offs (recoveries) by loan and lease type:
Commercial:
Commercial and industrial (1)
$66
$32
$120
$80
Commercial real estate
3
(3)
5
(11)
Lease financing
(3)
2
(3)
6
Total commercial
66
31
122
75
Consumer:
Residential mortgage
3
1
4
1
Automobile
12
7
27
20
Home equity
1
—
1
—
RV and marine
6
5
13
12
Other consumer
31
22
63
44
Total consumer
53
35
108
77
Total net charge-offs
$119
$66
$230
$152
Net charge-offs (recoveries) - annualized percentages:
Commercial:
Commercial and industrial
0.29%
0.22%
0.28%
0.28%
Commercial real estate
0.06
(0.14)
0.04
(0.20)
Lease financing
(0.18)
0.12
(0.08)
0.22
Total commercial
0.22
0.16
0.21
0.20
Consumer:
Residential mortgage
0.03
0.01
0.02
0.01
Automobile
0.32
0.19
0.35
0.27
Home equity
0.01
0.01
0.02
0.01
RV and marine
0.44
0.33
0.47
0.39
Other consumer
4.88
4.86
5.08
4.87
Total consumer
0.30
0.25
0.32
0.27
Net charge-offs as a % of average loans and leases
0.25%
0.20%
0.25%
0.23%
(1)Net charge-offs for the six months ended June 30, 2026 include $23 million of charge-offs on certain loans previously charged off by Cadence, which were
written up to the unpaid principal balance at acquisition and then immediately charged off by Huntington as required by purchase accounting.
NCOs were $119 million, or 0.25% of average total loans and leases on an annualized basis, in the second
quarter of 2026, an increase of $53 million compared to $66 million, or 0.20% of average total loans and leases on an
annualized basis, in the year-ago quarter. The increase reflects a $35 million increase in commercial NCOs to $66
million, and an $18 million increase in consumer NCOs to $53 million, in the second quarter of 2026. As a percentage
of average loans and leases, annualized NCOs for commercial loans and leases were 0.22% in the second quarter of
2026, compared to 0.16% in the year-ago quarter, while annualized consumer loan NCOs were 0.30% in the second
quarter of 2026, compared to 0.25% in the year-ago quarter.
22 Huntington Bancshares Incorporated
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NCOs were $230 million, or 0.25% of average total loans and leases on an annualized basis, in the six-month
period ended June 30, 2026, an increase of $78 million compared to $152 million, or 0.23% of average total loans
and leases on an annualized basis, in the six-month period ended June 30, 2025. The increase reflects a $47 million
increase in commercial NCOs to $122 million, and a $31 million increase in consumer NCOs to $108 million, in the
six-month period ended June 30, 2026. As a percentage of average loans and leases, annualized NCOs for
commercial loans and leases were 0.21% for the first six-month period of 2026, compared to 0.20% in the year-ago
period, while annualized consumer loan NCOs were 0.32% in the first six-month period of 2026, compared to 0.27%
in the year-ago period.
Market Risk
Market risk refers to potential losses arising from changes in interest rates, credit spreads, foreign exchange
rates, equity prices, and commodity prices, including the correlation among these factors and their volatility. When
the value of an instrument is tied to such external factors, the holder faces market risk. We are exposed primarily to
interest rate risk as a result of offering a wide array of financial products to our customers, and secondarily to price
risk from trading securities, securities owned by our broker-dealer subsidiaries, foreign exchange positions, equity
investments, and investments in securities backed by mortgage loans.
We measure market risk exposure via financial simulation models that provide management with insights on the
potential impact to net interest income and other key metrics as a result of changes in market interest rates. Models
are used to simulate cash flows and accrual characteristics of the balance sheet based on assumptions regarding the
slope or shape of the yield curve, the direction and volatility of interest rates, and the changing composition and
characteristics of the balance sheet resulting from strategic objectives and customer behavior. Our models
incorporate market-based assumptions that include the impact of changing interest rates on prepayment rates of
assets and runoff rates of deposits. The models also include our projections of the future volume and pricing of
various business lines.
In measuring the financial risks associated with interest rate sensitivity in our balance sheet, we compare a set of
alternative interest rate scenarios to the results of a base case scenario derived using market forward rates. The
market forward rates reflect the general market consensus regarding the future level and slope of the yield curve
across a range of tenor points. The standard set of interest rate scenarios includes two types: “shock” scenarios,
which are immediate parallel rate shifts, and “ramp” scenarios, where the parallel shift is applied gradually over the
first 12 months of the forecast on a pro-rata basis. In both shock and ramp scenarios with falling rates, we presume
that market rates will not go below 0%. The scenarios include all executed interest rate risk hedging activities.
Forward-starting hedges are included to the extent that they have been transacted and that they start within the
measurement horizon.
A key driver of our interest rate risk profile is our assumption of interest-bearing deposit repricing sensitivity to
changes in interest rates, otherwise known as deposit beta. In addition, our interest expense is impacted by the
composition of both interest-bearing and noninterest-bearing deposits in relation to our total deposits. Accordingly,
we consider the impacts from both interest-bearing and noninterest-bearing deposits on our total deposit beta.
Following the start of the current falling rate cycle, which began in the third quarter of 2024, our cumulative total
deposit beta (total cost of deposits) through the second quarter of 2026 was 30%.
We use two approaches to model interest rate risk: net interest income at risk (NII at Risk) and economic value
of equity at risk modeling sensitivity analysis (EVE at Risk).
NII at Risk is used by management to measure the risk and impact to earnings over the next 12 months, using a
wide range of interest rate scenarios, including instantaneous and gradual, as well as parallel and non-parallel,
changes in interest rates. The NII at Risk results included in the table below present select gradual “ramp” -200, -100,
+100 and +200 basis point parallel shift scenarios, implied by the forward yield curve over the next 12 months.
2026 2Q Form 10-Q 23
Table of Contents
Table 16 - Net Interest Income at Risk
At June 30, 2026
At December 31, 2025
Federal Funds Rate
Federal Funds Rate
Basis point change scenario
Starting Point
Month 12 (1)
NII at Risk (%)
Starting Point
Month 12 (1)
NII at Risk (%)
+200
3.75%
6.00%
2.8%
3.75%
5.25%
2.5%
+100
3.75
5.00
1.4
3.75
4.25
0.9
Base
3.75
4.00
—
3.75
3.25
—
-100
3.75
3.00
-1.0
3.75
2.25
-0.6
-200
3.75
2.00
-1.8
3.75
1.25
-1.9
(1)Represents the federal funds rate in month 12 given a gradual, parallel “ramp” relative to the base implied forward scenario.
The NII at Risk shows that the balance sheet is asset-sensitive at both June 30, 2026, and December 31, 2025.
The primary drivers to the change in sensitivity from December 31, 2025 include current and projected balance
sheet composition, including impacts from the Cadence acquisition, over the simulation horizon and market rates.
EVE at Risk is used by management to measure the impact of interest rate changes on the net present value of
assets and liabilities, including derivative exposures, using a wide range of scenarios. The EVE results included in the
table below present select immediate -200, -100, +100 and +200 basis point parallel “shock” scenarios from the yield
curve term points at the specific point in time that EVE sensitivity is measured.
Table 17 - Economic Value of Equity at Risk
Economic Value of Equity at Risk (%)
Basis point change scenario
-200
-100
+100
+200
At June 30, 2026
-2.0%
0.6%
-2.4%
-6.3%
At December 31, 2025
0.3
1.7
-3.5
-8.3
The change in sensitivity from December 31, 2025 was driven primarily by market rates and changes to actual
balance sheet composition, in part due to impacts from the Cadence acquisition.
Use of Derivatives to Manage Interest Rate Risk
An integral component of our interest rate risk management strategy is the use of derivative instruments to
minimize significant fluctuations in earnings caused by changes in market interest rates. A variety of derivative
financial instruments, principally interest rate swaps, swaptions, floors, forward contracts, and forward-starting
interest rate swaps, are used in asset and liability management activities to protect against the risk of adverse price
or interest rate movements. These instruments provide flexibility in adjusting Huntington’s sensitivity to changes in
interest rates without exposure to loss of principal and higher funding requirements.
Table 18 shows all swap and floor positions that are utilized for purposes of managing our exposures to the
variability of interest rates. The interest rate variability may impact either the fair value of the assets and liabilities or
the cash flows attributable to net interest margin. These positions are used to protect the fair value of assets and
liabilities by converting the contractual interest rate on a specified amount of assets and liabilities (i.e., notional
amounts) to another interest rate index. The positions are also used to hedge the variability in cash flows
attributable to the contractually specified interest rate by converting the variable-rate index into a fixed rate. The
volume, maturity, and mix of derivative positions change frequently as we adjust our broader interest rate risk
management objectives and the balance sheet positions to be hedged. For further information, including the
notional amount and fair values of these derivatives, refer to Note 15 - “Derivative Financial Instruments” of the
Notes to Unaudited Consolidated Financial Statements.
24 Huntington Bancshares Incorporated
Table of Contents
The following presents additional information about the interest rate swaps and floors used in Huntington’s
asset and liability management activities.
Table 18 - Information on Asset Liability Management Instruments
Weighted-
Average
Maturity (years)
Weighted-
Average
Fixed Rate
(dollar amounts in millions)
Notional
Value
Fair Value
At June 30, 2026
Asset conversion swaps
Securities (1):
Pay Fixed - Receive SOFR
$1,500
7.73
$149
2.14%
Pay Fixed - Receive SOFR - forward-starting (2)
4,122
12.08
73
3.81
Loans:
Receive Fixed - Pay SOFR
16,025
1.75
(151)
3.22
Receive Fixed - Pay SOFR - forward-starting (3)
4,600
3.58
(71)
3.37
Liability conversion swaps
Receive Fixed - Pay SOFR
10,099
2.61
(136)
3.45
Receive Fixed - Pay SOFR - forward-starting (3)
2,300
3.82
(43)
3.38
Purchased floor spreads (4)
Purchased Floor Spread - SOFR
4,950
2.91
34
2.65 / 3.75
Basis swaps (5)
Pay SOFR - Receive Fed Fund (economic hedges)
27
4.33
—
3.65
Pay Fed Fund - Receive SOFR (economic hedges)
1
9.31
—
3.73
Total swap portfolio
$43,624
$(145)
At December 31, 2025
Asset conversion swaps
Securities (1):
Pay Fixed - Receive SOFR
$3,987
3.92
$130
2.48%
Pay Fixed - Receive SOFR - forward-starting (6)
1,160
12.47
44
3.36
Loans:
Receive Fixed - Pay SOFR
15,800
2.05
(2)
3.18
Receive Fixed - Pay SOFR - forward-starting (7)
2,500
4.21
(3)
3.30
Liability conversion swaps
Receive Fixed - Pay SOFR
10,599
2.97
(22)
3.51
Purchased floor spreads (4)
Purchased Floor Spread - SOFR
6,750
1.06
30
2.80 / 3.87
Purchased Floor Spread - SOFR forward-starting (7)
3,200
3.49
51
2.83 / 3.83
Basis swaps (5)
Pay SOFR - Receive Fed Fund (economic hedges)
27
4.83
—
3.81
Pay Fed Fund - Receive SOFR (economic hedges)
1
9.81
—
3.99
Total swap portfolio
$44,024
$228
(1)Amounts include interest rate swaps as fair value hedges of fixed rate investment securities using the portfolio layer method.
(2)Forward-starting swaps effective starting from July 2026 to April 2029.
(3)Forward-starting swaps and forward-starting floor spreads effective starting from July 2026 to March 2027.
(4)The weighted-average fixed rates for floor spreads are the weighted-average strike rates for the upper and lower bounds of the instruments.
(5)Basis swaps have variable pay and variable receive resets. Weighted-average fixed rate column represents pay rate reset.
(6)Forward-starting swaps effective starting from February 2026 to October 2027.
(7)Forward-starting swaps and forward-starting floor spreads effective starting from January 2026 to December 2026.
Use of Derivatives to Manage Credit Risk
We may utilize credit derivatives as a tool to manage credit risk within the portfolio by purchasing credit
protection over certain types of loan products. When we purchase credit protection, such as a CDS, we pay a fee to
the seller, or CDS counterparty, in return for the right to receive a payment if a specified credit event occurs.
2026 2Q Form 10-Q 25
Table of Contents
MSRs
(This section should be read in conjunction with Note 7 - “Mortgage Loan Sales and Servicing Rights” of Notes to
Unaudited Consolidated Financial Statements.)
At June 30, 2026, we had a total of $752 million of capitalized MSRs representing the right to service $43.4
billion in mortgage loans.
MSR fair values are sensitive to movements in interest rates, as expected future net servicing income depends
on the projected outstanding principal balances of the underlying loans, which can be reduced by prepayments and
declines in credit quality. Prepayments usually increase when mortgage interest rates decline and decrease when
mortgage interest rates rise. We also employ hedging strategies to reduce the risk of MSR fair value changes.
However, volatile changes in interest rates can diminish the effectiveness of these economic hedges. We report
changes in the MSR value net of hedge-related trading activity in the mortgage banking income category of
noninterest income.
MSR assets are included in servicing rights and other intangible assets in the Unaudited Consolidated Financial
Statements.
Price Risk
Price risk represents the risk of loss arising from adverse movements in the prices of financial instruments that
are carried at fair value and are subject to fair value accounting. We have price risk from trading securities, securities
owned by our broker-dealer subsidiaries, foreign exchange positions, derivative instruments, and equity
investments. We have established loss limits on the trading portfolio, on the amount of foreign exchange exposure
that can be maintained, and on the amount of marketable equity securities that can be held.
Liquidity Risk
Liquidity risk is the possibility of us being unable to meet current and future financial obligations in a timely
manner. The goal of liquidity management is to ensure adequate, stable, reliable, and cost-effective sources of funds
to satisfy changes in loan and lease demand, unexpected levels of deposit withdrawals, investment opportunities,
and other contractual obligations. We consider core earnings, strong capital ratios, and credit quality essential for
maintaining high credit ratings, which allow us cost-effective access to market-based liquidity. We mitigate liquidity
risk by maintaining a large, stable customer deposit base and a diversified base of readily available wholesale
funding sources, including secured funding sources from the FHLB and FRB through pledged borrowing capacity,
issuance through dealers in the capital markets, and access to deposits issued through brokers. We further mitigate
liquidity risk by maintaining liquid assets in the form of cash and cash equivalents and securities.
The Board of Directors is responsible for establishing an acceptable level of liquidity risk at Huntington, including
approval of the liquidity risk appetite at least annually. The liquidity risk appetite includes liquidity risk metrics that
are designed and monitored to ensure Huntington maintains adequate liquidity to meet current and future funding
needs, including during periods of potential stress. The Board receives and reviews information on at least a semi-
annual basis to ensure Huntington is operating in accordance with its established risk tolerance. Further, the ALCO is
appointed by the ROC to oversee liquidity risk management, including the establishment of liquidity risk policies and
additional liquidity risk metrics and limits to support our overall liquidity risk appetite. Liquidity risk appetite metrics
are monitored by senior management daily and are reported to the Board at least semi-annually and to ROC on a
more frequent basis.
Liquidity risk is reviewed and managed continuously for the Bank and the parent company, as well as its
subsidiaries. In addition, liquidity working groups meet regularly to identify and monitor liquidity positions, provide
policy guidance, review funding strategies, and oversee the adherence to, and maintenance of, contingency funding
plans. At June 30, 2026, management believes current sources of liquidity are sufficient to meet Huntington’s on-
and off-balance sheet obligations over the next 12 months and for the foreseeable future.
26 Huntington Bancshares Incorporated
Table of Contents
We maintain a contingency funding plan that provides for liquidity stress testing, which assesses the potential
erosion of funds in the event of an institution-specific event or systemic financial market crisis. Examples of
institution specific events could include a downgrade in our public credit rating by a rating agency, a large charge to
earnings, declines in profitability or other financial measures, declines in liquidity sources including reductions in
deposit balances or access to contingent funding sources, or a significant merger or acquisition. Examples of
systemic events unrelated to us that could have an effect on our access to liquidity would be terrorism or war,
natural disasters, political events, failure of a major financial institution, or the default or bankruptcy of a major
corporation, mutual fund, or hedge fund. Similarly, market speculation or rumors about us, or the banking industry
in general, may adversely affect the cost and availability of normal funding sources. The contingency funding plan,
which is reviewed and approved by the ROC at least annually, outlines the process for addressing a liquidity crisis
and provides for an evaluation of funding sources under various market conditions. It also assigns specific roles and
responsibilities and communication protocols for effectively managing liquidity through a problem period and
outlines early warning indicators that are used to monitor emerging liquidity stress events.
Deposits
Our largest source of liquidity on a consolidated basis is customer deposits, which provide stable and lower-cost
funding. Our customer deposits come from a base of primary bank customer relationships, and we continue to focus
on acquiring and deepening those relationships, resulting in a diversified deposit base. T4Total deposits were $222.5
billion at June 30, 2026, compared to $176.6 billion at December 31, 2025. The $45.9 billion, or 26%, increase in total
deposits, compared to December 31, 2025, was primarily driven by $43.5 billion of deposits acquired in the Cadence
acquisition, in addition to organic deposit growth. Total deposits included $5.8 billion of brokered deposits primarily
consisting of brokered money market and time deposit balances at June 30, 2026, compared to $5.9 billion at
December 31, 2025. The level of brokered deposits was below our established liquidity risk metric limits at June 30,
2026.
Insured deposits comprised approximately 69% and 70% of our total deposits at June 30, 2026 and
December 31, 2025, respectively. The composition of our deposits is presented in the table below.
Table 19 - Deposit Composition
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
By type:
Demand deposits—noninterest-bearing
$40,129
18%
$32,205
18%
Demand deposits—interest-bearing
62,395
28
48,510
27
Money market deposits
75,717
34
65,123
37
Savings deposits
18,820
9
15,426
9
Time deposits
25,405
11
15,346
9
Total deposits
$222,466
100%
$176,610
100%
Total deposits (insured/uninsured):
Insured deposits
$153,290
69%
$123,744
70%
Uninsured deposits (1)
69,176
31
52,866
30
Total deposits
$222,466
100%
$176,610
100%
(1)Represents consolidated Huntington uninsured deposits, determined by adjusting the amounts reported in the Bank Call Report (FFIEC 031) by inter-
company deposits, which are not customer deposits and are therefore eliminated through consolidation. As of June 30, 2026, the Bank Call Report
estimated uninsured deposit balance was $73.7 billion, which includes $4.6 billion of inter-company deposits. As of December 31, 2025, the Bank Call
Report estimated uninsured deposit balance was $56.9 billion, which includes $4.1 billion of inter-company deposits.
Wholesale Funding
Sources of wholesale funding include non-customer brokered deposits, short-term borrowings, and long-term
debt. Our wholesale funding totaled $27.6 billion at June 30, 2026, an increase of $3.2 billion compared to $24.4
billion at December 31, 2025. The increase from year end was primarily due to a $1.9 billion increase in short-term
borrowings, primarily comprised of short-term FHLB advances, and a $1.5 billion increase in long-term debt driven
by $1.8 billion of senior and subordinated debt issuances, partially offset by maturities and repayments.
2026 2Q Form 10-Q 27
Table of Contents
Cash and Cash Equivalents and Investment Securities
Cash and cash equivalents were $15.6 billion and $13.5 billion at June 30, 2026 and December 31, 2025,
respectively. The $2.1 billion increase in cash and cash equivalents was largely due to higher branch cash on hand
and float balances at the end of the 2026 second quarter to support customer activity in conjunction with the
Cadence systems and branch conversions, as well as higher interest-earning deposits held at the FRB as part of
prudent liquidity risk management to support our strong liquidity position.
Our investment securities portfolio is evaluated under established ALCO objectives. Changing market conditions
could affect the profitability of the portfolio, as well as the level of interest rate risk exposure.
Total investment securities, comprised of AFS and HTM securities, were $49.6 billion at June 30, 2026, compared
to $41.4 billion at December 31, 2025. The $8.2 billion increase in investment securities, compared to December 31,
2025, was largely driven by $9.0 billion of investment securities acquired in the Cadence transaction. At June 30,
2026, the duration of the investment securities portfolio, net of hedging, was 3.2 years. Securities are pledged to
secure borrowing capacity with the FHLB and the FRB, discussed further in the Bank Liquidity and Sources of Funding
section below.
Bank Liquidity and Sources of Funding
Our primary source of funding for the Bank is customer deposits. At June 30, 2026, customer deposits funded
76% of total assets (114% of total loans and leases). To the extent we are unable to obtain sufficient liquidity
through customer deposits, cash and cash equivalents, and investment securities, we may meet our liquidity needs
through wholesale funding and asset securitization or sale. Additionally, the Bank may also access funding through
intercompany notes or parent company deposits placed at the Bank.
The Bank maintains borrowing capacity at both the FHLB and the FRB secured by pledged loans and securities.
While the Bank does not consider borrowing capacity at the FRB a primary source of funding, it could be used as a
potential source of liquidity in a stressed environment or during a market disruption. The amount of available
contingent borrowing capacity may fluctuate based on the level of borrowings outstanding and level of assets
pledged.
A summary of the Bank’s selected contingent liquidity sources is presented in the following table.
Table 20 - Selected Contingent Liquidity Sources
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
Unused secured borrowing capacity:
FRB
$80,905
$71,296
FHLB
22,789
16,212
Unpledged investment securities (at market value)
11,675
11,743
Interest-earning deposits held at FRB
12,269
11,712
Selected contingent liquidity sources
$127,638
$110,963
As of June 30, 2026, we believe the Bank has sufficient liquidity and capital resources to meet its cash flow
obligations over the next 12 months and for the foreseeable future.
Parent Company Liquidity
The parent company’s primary financial obligations consist of dividends to shareholders, debt service, income
taxes, operating expenses, funding of nonbank subsidiaries, repurchases of our stock, and acquisitions. The parent
company obtains funding to meet obligations from dividends and interest received from the Bank, interest and
dividends received from direct subsidiaries, net taxes collected from subsidiaries included in the federal consolidated
tax return, fees for services provided to subsidiaries, and the issuance of debt and equity instruments.
The parent company had cash and cash equivalents of $4.1 billion and $3.6 billion at June 30, 2026 and
December 31, 2025, respectively.
28 Huntington Bancshares Incorporated
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On July 22, 2026, our Board of Directors declared a quarterly cash dividend on our common stock of $0.155 per
common share, payable on October 1, 2026 to shareholders of record on September 17, 2026. Additionally, on
July 22, 2026, our Board of Directors declared quarterly dividends on our Series B, F, G, H, J, and K preferred stock,
payable on October 15, 2026 to shareholders of record on October 1, 2026, and a quarterly dividend on our Series L
preferred stock, payable on November 20, 2026 to shareholders of record on November 5, 2026. On June 24, 2026,
our Board of Directors declared a quarterly dividend on our Series I preferred stock, payable on September 1, 2026
to shareholders of record on August 15, 2026. Current quarterly dividend declarations are expected to total
approximately $354 million.
During the first six months of 2026, the Bank paid common dividends to the parent company of $550 million.
During the first quarter of 2026, the Bank redeemed all of its preferred stock outstanding that had previously been
held by the parent company. To meet any additional liquidity needs, the parent company may issue debt or equity
securities. To support the parent company’s ability to issue debt or equity securities, we have filed an automatic
shelf registration statement with the SEC covering an indeterminate amount or number of securities to be offered or
sold from time to time as authorized by Huntington’s Board of Directors.
As of June 30, 2026, we believe the Company has sufficient liquidity and capital resources to meet its cash flow
obligations over the next 12 months and for the foreseeable future.
Credit Ratings
Credit ratings represent evaluations by rating agencies based on a number of factors, including financial strength
and the ability to generate earnings, as well as factors not entirely within our control, including conditions affecting
the financial services industry, the economy, and changes in rating methodologies. Credit ratings are subject to
change at any time. Our credit ratings impact our availability and cost of financing, as well as collateral requirements
for certain derivative instruments and deposit products. A downgrade to our credit ratings could adversely affect our
access to capital, increase our cost of funds, or trigger additional collateral or funding requirements.
The following table presents our credit ratings and rating agency outlooks.
Table 21 - Credit Ratings and Outlook
At June 30, 2026
Moody’s
Standard & Poor’s
Fitch
DBRS Morningstar
Huntington Bancshares Incorporated
Senior unsecured notes
Baa1
BBB+
A-
A
Subordinated notes
Baa1
BBB
BBB+
A (low)
Commercial paper
NR
NR
F1
R-1 (low)
Ratings outlook
Negative
Stable
Stable
Stable
The Huntington National Bank
Senior unsecured notes
A3
A-
A-
A (high)
Long-term deposits
A1
NR (1)
A
A (high)
Short-term deposits
P-1
NR (1)
F1
R-1 (middle)
Ratings outlook
Negative
Stable
Stable
Stable
NR - Not Rated
(1) Standard & Poor’s does not provide a depositor rating. The Bank’s issuer credit rating is A-.
Contractual Obligations and Commitments
In the normal course of business, we enter into various contractual obligations and commitments that could
impact our liquidity and capital resources. These arrangements include commitments to extend credit, interest rate
swaps, floors, financial guarantees contained in standby letters-of-credit issued by the Bank, commitments by the
Bank to sell mortgage loans, operating lease payments, and other purchase and marketing obligations.
2026 2Q Form 10-Q 29
Table of Contents
Operational Risk
Operational risk is the risk of loss due to human error, third-party performance failures, or inadequate or failed
internal systems and controls, including the use of financial or other quantitative methodologies that may not
adequately predict future results; violations of, or noncompliance with, laws, rules, regulations, prescribed practices,
or ethical standards; and external influences such as market conditions, fraudulent activities, disasters, failed
business contingency plans, and security risks. We continuously strive to test and strengthen our system of internal
controls to ensure compliance with significant contracts, agreements, laws, rules, and regulations, to reduce our
exposure to fraud and to improve the oversight of our operational risk.
To govern operational risks, we have an Operational Risk Committee, a Legal, Regulatory, and Compliance
Committee, a Funds Movement Committee, a Fraud Risk Committee, an Information and Technology Risk
Committee, an Artificial Intelligence Risk Committee, a Regulatory and Data Oversight Committee, and a Third Party
Risk Management Committee. The responsibilities of these committees, among other duties, include establishing
and maintaining management information systems to monitor material risks and to identify potential concerns,
risks, or trends that may have a significant impact and ensuring that recommendations are developed to address the
identified issues. In addition, we have a Model Risk Oversight Committee that is responsible for policies and
procedures describing how model risk is evaluated and managed and the application of the governance process to
implement these practices throughout the enterprise. These committees report any significant findings and
remediation recommendations to the Risk Management Committee. Potential concerns may be escalated to our
ROC and our Audit Committee, as appropriate.
The goal of this framework is to implement effective operational risk monitoring; minimize operational, fraud,
and legal losses; minimize the impact of inadequately designed models; and enhance our overall performance.
Cybersecurity
Cybersecurity represents an important component of Huntington’s overall cross-functional approach to risk
management. We actively manage a cybersecurity operation designed to detect, contain, and respond to
cybersecurity threats and incidents in a prompt and effective manner with the goal of minimizing disruptions to our
business. We actively monitor for cyberattacks, such as attempts related to online deception and loss of sensitive
customer data. We evaluate our technology, processes, and controls to mitigate loss from cyberattacks. Although to
date we have not experienced any material losses due to cyberattacks, with the increasing sophistication,
acceleration, and complexity of cyber events, including from developments in artificial intelligence and other
emerging technologies, we cannot ensure that there will not be a material loss in the future. Cybersecurity threats
continue to evolve and increase across the entire digital landscape. In response to the evolving threat landscape, we
continue to enhance our cybersecurity, operational resilience, and third-party risk management capabilities,
including efforts designed to improve the speed of vulnerability identification, remediation, monitoring, and
recovery. We actively monitor our environment for malicious content and implement specific cybersecurity and
fraud capabilities, including the monitoring of phishing email campaigns. In addition, we have implemented specific
cybersecurity and fraud monitoring of remote connections by geography and volume of connections to detect
anomalous remote logins, since a portion of our workforce works remotely from time to time.
Our objective for managing cybersecurity risk is to avoid or minimize the impacts of both internal and external
threat events or other efforts to penetrate our systems. We work to achieve this objective by hardening networks
and systems against attack and by diligently managing visibility and monitoring controls within our data and
communications environment to recognize events and respond before the attacker has the opportunity to plan and
execute on its own goals. To this end, we employ a set of defense-in-depth strategies, which include efforts to make
us less attractive as a target and less vulnerable to threats, while investing in threat analytic capabilities for rapid
detection and response. Potential concerns related to cybersecurity may be escalated to our board-level ROC and/or
Technology Committee, as appropriate.
As a complement to the overall cybersecurity risk management, we use a number of internal training methods,
both formally through mandatory courses and informally through written communications and other updates, to
ensure awareness of the risks of cybersecurity threats at all levels across the organization. Internal policies and
procedures have been implemented to encourage the reporting of potential phishing attacks or other security risks.
We also use third-party services to test the effectiveness of our cybersecurity risk management framework, and any
such third-parties are required to comply with our policies regarding information security and confidentiality.
30 Huntington Bancshares Incorporated
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Compliance Risk
Compliance risk arises from the possibility that we may fail to comply with the extensive federal and state laws,
rules, and regulations that govern our operations. These requirements span a broad range of obligations, including
anti‑money laundering, consumer protection, lending and servicing standards, client privacy, fair lending,
prohibitions against unfair, deceptive, or abusive acts or practices, protections for military service members, and
community reinvestment expectations.
We maintain a comprehensive compliance management framework designed to identify, assess, monitor, and
report compliance risk across the Company. This framework is supported by dedicated compliance professionals
who partner with our business segments to implement and maintain effective policies, procedures, and controls
consistent with applicable regulatory requirements. Our colleagues receive mandatory training on core regulatory
obligations such as anti‑money laundering and customer privacy, with additional targeted training for those engaged
in lending activities, including flood disaster protection, equal credit opportunity, and fair lending.
We continue to invest in systems, processes, and governance to support compliance with evolving regulatory
expectations. Ongoing changes in regulatory requirements and supervisory priorities may affect our compliance risk
profile. We remain committed to maintaining strong compliance practices and to enhancing our compliance
program as necessary to align with applicable laws, rules, and regulations and to support our aggregate
moderate‑to‑low, through‑the‑cycle risk appetite.
CAPITAL
Our primary capital objective is to maintain appropriate levels of capital within our Board-approved risk appetite
to support the Bank’s operations, absorb unanticipated losses and declines in asset values, and provide protection to
uninsured depositors and debt holders in the event of liquidation, while also funding organic growth and providing
appropriate returns to our shareholders. We manage regulatory capital and shareholders’ equity at the Bank and on
a consolidated basis. We have an active program for managing capital, and we maintain a comprehensive process
for assessing our overall capital adequacy, including the monitoring and reporting of capital risk metrics to the Board
and ROC that we believe are useful for evaluating capital adequacy and making capital decisions. In addition to as-
reported regulatory capital and tangible common equity metrics, we also actively monitor other measures of capital,
such as tangible common equity including the mark-to-market impact on HTM securities and CET1 including the
impact of AOCI excluding cash flow hedges. We believe our current levels of both regulatory capital and
shareholders’ equity are adequate.
2026 2Q Form 10-Q 31
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The following table presents certain regulatory capital information at both the consolidated and Bank level.
Table 22 - Regulatory Capital Information
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
Consolidated:
CET1 risk-based capital ratio
10.0%
10.4%
Tier 1 risk-based capital ratio
11.3
12.0
Total risk-based capital ratio
13.6
14.2
Tier 1 leverage ratio
8.8
9.3
CET1 risk-based capital
$21,388
$17,286
Tier 1 risk-based capital
24,279
20,027
Total risk-based capital
29,076
23,593
Total risk-weighted assets
214,138
166,684
Bank:
CET1 risk-based capital ratio
11.8%
11.7%
Tier 1 risk-based capital ratio
12.0
12.4
Total risk-based capital ratio
13.8
14.0
Tier 1 leverage ratio
9.3
9.6
CET1 risk-based capital
$25,197
$19,426
Tier 1 risk-based capital
25,622
20,626
Total risk-based capital
29,502
23,165
Total risk-weighted assets
213,211
165,701
At June 30, 2026, Huntington and the Bank maintained capital ratios in excess of the well-capitalized standards
established by the Federal Reserve. Our consolidated CET1 risk-based capital ratio was 10.0% at June 30, 2026,
compared to 10.4% at December 31, 2025, with the decrease driven by higher risk-weighted assets primarily
resulting from loan growth, the impact of the Cadence acquisition, and share repurchases, partially offset by an
increase in regulatory capital from current period earnings, net of dividends. The Bank CET1 risk-based capital ratio
of 11.8% increased approximately 10 basis points from year-end driven by bank earnings, net of upstream dividends
to the parent, and a $780 million capital contribution from the parent, which the Bank in turn used to redeem its
outstanding preferred stock held by the parent, partially offset by higher risk-weighted assets and the impact of the
Cadence acquisition.
We are authorized to make capital distributions that are consistent with the requirements in the Federal
Reserve’s capital rule, including the SCB requirement. Our SCB requirement is 2.5%.
Shareholders’ Equity
We generate shareholders’ equity primarily through the retention of earnings, net of dividends and share
repurchases. Other potential sources of shareholders’ equity include issuances of common and preferred stock. Our
objective is to maintain capital at an amount commensurate with our risk appetite and risk tolerance objectives, to
meet both regulatory and market expectations, and to provide the flexibility needed for future growth and business
opportunities.
Shareholders’ equity totaled $32.6 billion at June 30, 2026, an increase of $8.3 billion, or 34%, when compared
with December 31, 2025. The increase was primarily driven by $8.3 billion of common and preferred equity issued as
consideration for the Cadence acquisition, in addition to earnings, net of dividends, that were partially offset by
share repurchases and a reduction in accumulated other comprehensive income driven by changes in interest rates.
Our common dividend and total payout ratios were 55% and 81%, respectively, for the first six-month period of
2026, compared to 46% for both ratios for the same period of 2025. The year-over-year increase in the common
dividend payout ratio was due to the impact of acquisition-related expenses on earnings.
32 Huntington Bancshares Incorporated
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Share Repurchases
From time to time, our Board of Directors authorizes the Company to repurchase shares of our common stock.
Although we announce when our Board authorizes share repurchases, we typically do not give any public notice
before we repurchase our shares at any particular time. Share repurchases may include open market purchases,
through block trades, in privately negotiated transactions, and pursuant to any trading plan that may be adopted by
the Company’s management in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, or
otherwise, and is subject to the Federal Reserve’s capital regulations. The timing of repurchases will be discretionary
and depend on several factors, including the macroeconomic and interest rate environment, the pace of loan
growth, and other factors.
On April 22, 2026, our Board approved the repurchase of up to $3.0 billion of common shares with no expiration
date. During the six months ended June 30, 2026, we repurchased 18.8 million shares totaling $309 million. As of
June 30, 2026, we had $2.95 billion of common shares available for repurchase under the current Board-approved
authorization.
BUSINESS SEGMENT DISCUSSION
Overview
Our business segments are based on our internally aligned segment leadership structure, which is how
management monitors results and assesses performance. We have two business segments: Consumer & Regional
Banking and Commercial Banking. All other items not included within our two business segments are reported
within the Treasury / Other function, which primarily includes technology and operations and other unallocated
assets, liabilities, revenue, and expense.
Business segment results are determined based on our management practices, which assign balance sheet and
income statement items to each of the business segments. The process is designed around our organizational and
management structure and, accordingly, the results derived are not necessarily comparable with similar information
published by other financial institutions.
Revenue Sharing
Revenue is recorded in the business segment responsible for the related product or service. Fee sharing is
recorded to allocate portions of such revenue to other business segments involved in selling to or providing service
to customers. Results of operations for the business segments reflect these fee-sharing allocations.
Expense Allocation
The management process that develops the business segment reporting utilizes various estimates and allocation
methodologies to measure the performance of the business segments. Expenses are allocated to business segments
using a two-phase approach. The first phase consists of measuring and assigning unit costs (activity-based costs) to
activities related to product origination and servicing. These activity-based costs are then extended, based on
volumes, with the resulting amount allocated to business segments that own the related products. The second
phase consists of the allocation of overhead costs to the business segments from Treasury / Other. We utilize a full-
allocation methodology, where all Treasury / Other expenses, except reported acquisition-related expenses, if any,
and a small amount of other residual unallocated expenses, are allocated to the business segments.
Funds Transfer Pricing (FTP)
We use an active and centralized FTP methodology to attribute appropriate net interest income to the business
segments. The intent of the FTP methodology is to transfer interest rate risk from the business segments by
providing modeled duration funding of assets and liabilities. The result is to centralize the financial impact,
management, and reporting of interest rate risk in the Treasury / Other function where it can be centrally monitored
and managed. The Treasury / Other function charges (credits) an internal cost of funds for assets held in (or pays for
funding provided by) each business segment. The FTP rate is based on prevailing market interest rates for
comparable duration assets (or liabilities). The primary components of the FTP rate include a base (market) rate, a
liquidity premium, contingent liquidity and collateral charges, and option cost.
2026 2Q Form 10-Q 33
Table of Contents
Net Income (Loss) by Business Segment
Net income (loss) by business segment is presented in the following table.
Table 23 - Net Income (Loss) by Business Segment
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
Consumer & Regional Banking
$1,010
$616
Commercial Banking
708
552
Treasury / Other
(468)
(105)
Net income attributable to Huntington
$1,250
$1,063
Consumer & Regional Banking
Table 24 - Key Performance Indicators for Consumer & Regional Banking
Six Months Ended
Change
(dollar amounts in millions)
June 30, 2026
June 30, 2025
Amount
Percent
Net interest income
$2,823
$1,957
$866
44%
Provision for credit losses
164
185
(21)
(11)
Net interest income after provision for credit losses
2,659
1,772
887
50
Noninterest income
844
666
178
27
Noninterest expense:
Direct personnel costs
789
599
190
32
Other noninterest expense, including corporate allocations
1,435
1,060
375
35
Total noninterest expense
2,224
1,659
565
34
Income before income taxes
1,279
779
500
64
Provision for income taxes
269
163
106
65
Net income attributable to Huntington
$1,010
$616
$394
64%
Number of employees (average full-time equivalent)
13,725
11,261
2,464
22%
Total average assets
$109,218
$78,511
$30,707
39
Total average loans/leases
100,143
72,601
27,542
38
Total average deposits
145,615
111,558
34,057
31
Net interest margin
3.80%
3.48%
0.32%
9
NCOs
$189
$118
$71
60
NCOs as a % of average loans and leases
0.38%
0.33%
0.05%
15
Total assets under management (in billions)—eop
$49.6
$35.3
$14.3
41
Total trust assets (in billions)—eop
68.9
182.8
(113.9)
(62)
Consumer & Regional Banking net income was $1.0 billion in the six-month period of 2026, an increase of $394
million, or 64%, compared to the year-ago period. Segment net interest income increased $866 million, or 44%,
primarily due to a $27.5 billion, or 38%, increase in average loans and leases, which includes the Cadence and
Veritex acquisitions, and a 32 basis point increase in NIM. Provision for credit losses decreased $21 million due to
changes in the loan portfolio, partially offset by net charge-offs. Noninterest income increased $178 million, or 27%,
primarily due to the impact of the Cadence and Veritex acquisitions, as well as growth in customer deposit fee
income, wealth and asset management revenue, and payments and cash management revenue. Noninterest
expense increased $565 million, or 34%, primarily due to incremental expenses associated with the Cadence and
Veritex acquisitions, along with higher personnel costs and indirect expense allocations.
34 Huntington Bancshares Incorporated
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Commercial Banking
Table 25 - Key Performance Indicators for Commercial Banking
Six Months Ended
Change
(dollar amounts in millions)
June 30, 2026
June 30, 2025
Amount
Percent
Net interest income
$1,359
$1,026
$333
32%
Provision for credit losses
125
33
92
279
Net interest income after provision for credit losses
1,234
993
241
24
Noninterest income
527
339
188
55
Noninterest expense:
Direct personnel costs
393
288
105
36
Other noninterest expense, including corporate allocations
462
332
130
39
Total noninterest expense
855
620
235
38
Income before income taxes
906
712
194
27
Provision for income taxes
190
150
40
27
Income attributable to non-controlling interest
8
10
(2)
(20)
Net income attributable to Huntington
$708
$552
$156
28%
Number of employees (average full-time equivalent)
2,689
2,179
510
23%
Total average assets
$91,627
$68,697
$22,930
33
Total average loans/leases
81,386
59,201
22,185
37
Total average deposits
59,132
43,002
16,130
38
Net interest margin
3.28%
3.34%
(0.06)%
(2)
NCOs
$40
$34
$6
18
NCOs as a % of average loans and leases
0.10%
0.12%
(0.02)%
(17)
Commercial Banking net income was $708 million in the first six-month period of 2026, an increase of $156
million, or 28%, compared to the year-ago period. Segment net interest income increased $333 million, or 32%,
primarily driven by a $22.2 billion, or 37%, increase in average loans and leases and a $16.1 billion, or 38%, increase
in average deposits. The increases in loans and leases and deposits were driven by the impact of the Cadence and
Veritex acquisitions, as well as organic growth. The provision for credit losses increased $92 million primarily due to
loan and lease growth. Noninterest income increased $188 million, or 55%, primarily due to the contributions of
Cadence and Veritex, and an additional increase in capital markets and advisory fees, which included the impact of
three strategic business units acquired from Janney in January 2026. Customer deposit and loan fees, payment and
cash management, and leasing revenue were also higher. Noninterest expense increased $235 million, or 38%,
primarily driven by higher personnel expense related to the recent acquisitions and higher allocated overhead.
Treasury / Other
The Treasury / Other function includes revenue and expense related to assets, liabilities, derivatives (including
mark-to-market of interest rate swaps, as applicable), and equity not directly assigned or allocated to one of the
business segments. Assets include investment securities and bank-owned life insurance.
Net interest income includes the impact of administering our investment securities portfolios, the net impact of
derivatives used to hedge interest rate sensitivity, and the financial impact associated with our FTP methodology, as
described above. Noninterest income includes miscellaneous fee income not allocated to other business segments,
such as bank-owned life insurance income and securities and trading asset gains or losses. Noninterest expense
includes certain corporate administrative expenses, acquisition-related expenses, if any, and other miscellaneous
expenses not allocated to other business segments. The provision for income taxes for the business segments is
calculated at a statutory 21% tax rate, although our overall effective tax rate is lower.
2026 2Q Form 10-Q 35
Table of Contents
Table 26 - Key Performance Indicators for Treasury / Other
Six Months Ended
Change
(dollar amounts in millions)
June 30, 2026
June 30, 2025
Amount
Percent
Net interest loss
$(239)
$(90)
$(149)
(166)%
Noninterest income
96
(40)
136
340
Noninterest expense:
Direct personnel costs
820
506
314
62
Other noninterest expense, including corporate allocations
(316)
(436)
120
28
Total noninterest expense
504
70
434
620
Loss before income taxes
(648)
(200)
(448)
(224)
Benefit for income taxes
(180)
(95)
(85)
(89)
Net loss attributable to Huntington
$(468)
$(105)
$(363)
(346)%
Number of employees (average full-time equivalent)
9,113
6,726
2,387
35%
Total average assets
$72,542
$59,269
$13,273
22
Treasury / Other had a net loss of $468 million in the first six-month period of 2026, compared to a net loss of
$105 million in the year-ago period, driven by acquisition-related expenses, a decrease in net interest income, and a
reduction in corporate allocations, partially offset by higher noninterest income and an increase in the benefit for
income taxes. Net interest loss increased $149 million primarily due to the net impact of FTP credits assigned to each
business segment. The increase in noninterest income was largely due to the addition of Cadence and Veritex, while
the increase in noninterest expense was largely due to acquisition-related expenses. The benefit for income taxes
increased $85 million primarily due to an increase in pre-tax loss.
ADDITIONAL DISCLOSURES
Forward-Looking Statements
This Quarterly Report on Form 10-Q, including MD&A, contains certain forward-looking statements, including,
but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and
are subject to numerous assumptions, risks, estimates, and uncertainties that are beyond the control of Huntington.
Statements that do not describe historical or current facts, including statements about beliefs and expectations, are
forward-looking statements. Forward-looking statements may be identified by words such as expect, anticipate,
continue, believe, intend, estimate, plan, trend, objective, target, goal, or similar expressions, or future or
conditional verbs such as will, may, might, should, would, could, or similar variations. The forward-looking
statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933,
Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.
36 Huntington Bancshares Incorporated
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While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain
factors which could cause actual results to differ materially from those contained or implied in the forward-looking
statements or historical performance: changes in general economic, political, regulatory, or industry conditions;
deterioration in business and economic conditions, including persistent inflation, supply chain issues or labor
shortages, instability in global economic conditions and geopolitical conditions, including U.S. direct involvement in
war and other conflicts, as well as volatility in financial markets; changes in U.S. trade policies, including the
imposition of tariffs and retaliatory tariffs; the impact of pandemics and other catastrophic events or disasters on
the global economy and financial market conditions and our business, results of operations, and financial condition;
the impacts related to or resulting from bank failures and other volatility, including potential increased regulatory
requirements and costs, such as FDIC special assessments, long-term debt requirements and heightened capital
requirements; potential impacts to macroeconomic conditions, which could affect the ability of depository
institutions, including us, to attract and retain depositors and to borrow or raise capital; unexpected outflows of
deposits which may require us to sell investment securities at a loss; changing interest rates which could negatively
impact the value of our portfolio of investment securities; the loss of value of our investment portfolio which could
negatively impact market perceptions of us and could lead to deposit withdrawals; market perceptions of us and
banks generally, including from the effects of social media; cybersecurity risks; uncertainty in U.S. fiscal and
monetary policy, including the interest rate policies of the Federal Reserve; volatility and disruptions in global
capital, foreign exchange, and credit markets; movements in interest rates; competitive pressures on product pricing
and services; success, impact, and timing of our business strategies, including market acceptance of any new
products or services including those implementing our “Fair Play” banking philosophy; introduction of new
competitive products, such as stablecoins, and new competitors, such as financial technology companies and other
“nontraditional” bank competitors; changes in policies and standards for regulatory review of bank mergers; the
nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and
interpretations, including those related to the Dodd-Frank Act and the Basel III regulatory capital reforms, as well as
those involving the SEC, the OCC, the Federal Reserve, the FDIC, the CFPB, and state-level regulators; the possibility
that the anticipated benefits of recent or proposed acquisitions are not realized when expected or at all, including as
a result of the impact of, or problems arising from, the integration of the companies or as a result of the strength of
the economy and competitive factors in the areas where the companies do business; and other factors that may
affect the future results of Huntington.
All forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth
above. Forward-looking statements speak only as of the date they are made and are based on information available
at that time. Huntington does not assume any obligation to update forward-looking statements to reflect actual
results, new information or future events, changes in assumptions or changes in circumstances or other factors
affecting forward-looking statements that occur after the date the forward-looking statements were made or to
reflect the occurrence of unanticipated events except as required by federal securities laws. If Huntington updates
one or more forward-looking statements, no inference should be drawn that Huntington will make additional
updates with respect to those or other forward-looking statements. As forward-looking statements involve
significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
Non-GAAP Financial Measures
This document contains GAAP financial measures and non-GAAP financial measures, including FTE net interest
income, FTE total revenue, and the efficiency and tangible common equity ratios, where management believes it to
be helpful in understanding our results of operations or financial position. Where non-GAAP financial measures are
used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial
measure, for FTE net interest income and FTE total revenue can be found in Table 1 in this report and in the
reconciliation below for the efficiency and tangible common equity ratios.
2026 2Q Form 10-Q 37
Table of Contents
Fully-Taxable Equivalent Basis
Interest income, yields, and ratios on an FTE basis are considered non-GAAP financial measures. Management
believes net interest income on an FTE basis provides an insightful picture of the interest margin for comparison
purposes. The FTE basis also allows management to assess the comparability of revenue arising from both taxable
and tax-exempt sources. The FTE basis assumes a federal statutory tax rate of 21%. We encourage readers to
consider the Unaudited Consolidated Financial Statements and other financial information contained in this Form
10-Q in their entirety, and not to rely on any single financial measure.
Non-Regulatory Capital Ratios
In addition to capital ratios defined by banking regulators, the Company considers various other measures when
evaluating capital utilization and adequacy, including tangible common equity to tangible assets.
Non-regulatory capital ratios are viewed by management as useful additional methods of reflecting the level of
capital available to withstand unexpected market conditions. Additionally, presentation of these ratios allows
readers to compare our capitalization to other financial services companies. These ratios differ from capital ratios
defined by banking regulators principally in that the numerator excludes goodwill and other intangible assets, the
nature and extent of which varies among different financial services companies. These ratios are not defined in
GAAP or federal banking regulations. As a result, non-regulatory capital ratios disclosed by the Company are
considered non-GAAP financial measures.
Because there are no standardized definitions for non-regulatory capital ratios, the Company’s calculation
methods may differ from those used by other financial services companies. Also, there may be limits in the
usefulness of these measures to investors. As a result, we encourage readers to consider the Unaudited
Consolidated Financial Statements and other financial information contained in this Form 10-Q in their entirety, and
not to rely on any single financial measure.
The following table provides a reconciliation of the Company’s tangible common equity to tangible assets ratio.
June 30,
December 31,
(dollar amounts in millions)
2026
2025
Calculation of tangible equity / asset ratio:
Total Huntington shareholders’ equity
$32,624
$24,342
Goodwill and other intangible assets
(10,442)
(6,142)
Deferred tax liability on other intangible assets (1)
192
30
Total tangible equity
22,374
18,230
Preferred equity
(2,881)
(2,731)
Total tangible common equity
$19,493
$15,499
Total assets
$283,984
$225,106
Goodwill and other intangible assets
(10,442)
(6,142)
Deferred tax liability on other intangible assets (1)
192
30
Total tangible assets
$273,734
$218,994
Shareholders' equity / total assets
11.5%
10.8%
Tangible equity / tangible asset ratio
8.2
8.3
Tangible common equity / tangible asset ratio
7.1
7.1
(1)Deferred tax liability related to other intangible assets is calculated at a 21% tax rate.
38 Huntington Bancshares Incorporated
Table of Contents
Efficiency Ratio
The following table provides a reconciliation of the Company’s efficiency ratio.
Three Months Ended
Six Months Ended
(amounts in millions)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Noninterest expense (GAAP)
$1,809
$1,197
$3,583
$2,349
Less: Intangible amortization
54
11
95
22
Noninterest expense less amortization of intangibles (non-GAAP)
$1,755
$1,186
$3,488
$2,327
Net interest income
$2,052
$1,467
$3,943
$2,893
Noninterest income
785
471
1,467
965
Total Revenue (GAAP)
2,837
1,938
5,410
3,858
Add: FTE adjustment (1)
20
16
39
31
Less: Gains (losses) on sales of securities
2
(58)
15
(58)
FTE revenue less gains (losses) on sales of securities (non-GAAP)
$2,855
$2,012
$5,434
$3,947
Efficiency Ratio (2)
61.5%
59.0%
64.2%
58.9%
(1)Calculated on an FTE basis, which represents a non-GAAP measure, assuming a 21% tax rate.
(2)Noninterest expense less amortization of intangibles divided by the sum of FTE net interest income and noninterest income excluding gains (losses) on
sales of securities, which represents a non-GAAP measure.
Critical Accounting Policies and Use of Significant Estimates
Our Unaudited Consolidated Financial Statements are prepared in accordance with GAAP. The preparation of
financial statements in conformity with GAAP requires us to establish accounting policies and make estimates that
affect amounts reported in our Unaudited Consolidated Financial Statements. Note 1 - “Significant Accounting
Policies” of the Notes to Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K, as
supplemented by this report including this MD&A, describes the significant accounting policies we used in our
Unaudited Consolidated Financial Statements.
An accounting estimate requires assumptions and judgments about uncertain matters that could have a material
effect on the Unaudited Consolidated Financial Statements. Estimates are made under facts and circumstances at a
point in time, and changes in those facts and circumstances could produce results substantially different from those
estimates. Our critical accounting policies include the allowance for credit losses, fair value measurements of certain
acquired assets, and goodwill. The following details the policies, assumptions, and judgments related to the
allowance for credit losses and acquisition fair value measurements. The policies, assumptions, and judgments
related to goodwill are described in the Critical Accounting Policies and Use of Significant Estimates section within
the MD&A of Huntington’s 2025 Annual Report on Form 10-K.
Allowance for Credit Losses
Our ACL at June 30, 2026 represents our current estimate of the lifetime credit losses expected from our loan
and lease portfolio and our unfunded lending commitments. Management estimates the ACL by projecting
probability of default, loss given default, and exposure at default, conditional on economic parameters, for the
remaining contractual term. Internal factors that impact the quarterly allowance estimate include the level of
outstanding balances, the portfolio performance, and assigned risk ratings. We utilize statistically based models that
employ assumptions about current and future economic conditions throughout the contractual life of our loan
portfolio. As part of our model risk oversight, we perform ongoing monitoring of model performance to assess
modeling approaches and identify potential model enhancements, which may result in updates to our statistically
based models from time to time.
One of the most significant judgments influencing the ACL estimate is the macroeconomic forecasts. Key
external economic parameters that directly impact our loss modeling framework include forecasted unemployment
rates and GDP. Changes in the economic forecasts could significantly affect the estimated credit losses, which could
potentially lead to materially different allowance levels from one reporting period to the next.
2026 2Q Form 10-Q 39
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Given the dynamic relationship between macroeconomic variables within our modeling framework, it is difficult
to estimate the impact of a change in any one individual variable on the allowance. As a result, management uses a
probability-weighted approach that incorporates a baseline, an adverse, and a more favorable economic scenario
when formulating the quantitative estimate.
To illustrate a hypothetical sensitivity analysis, management calculated a quantitative allowance using a 100%
weighting applied to an adverse scenario reflecting an amount of stress in excess of current expectations. This
scenario contemplates elevated interest rates weakening credit-sensitive consumer spending and confidence more
than expected. In this scenario, the impact of tariffs on the economy is significantly worse than expected, causing
inflation to increase. In response, the Federal Reserve lowers rates. Increased geopolitical tensions heighten the risk
that China might block the Taiwan strait, limiting the supply chain for semiconductors and raising fears of a broader
conflict. Additionally, concerns grow that the Russian invasion of Ukraine lasts longer than in the baseline scenario
and that the Middle East conflict will widen resulting in sustained increases in energy prices. The combination of
tariffs, rising inflation, political tensions, still elevated interest rates, and reduced credit availability causes the
economy to fall into a recession in mid-2026. Under this scenario, as an example, the unemployment rate increases
significantly from baseline levels peaking in the second quarter of 2027 and GDP declines significantly. The
unemployment rate in this adverse scenario is projected to peak at 8.5% in the second quarter of 2027. This is
approximately 3.9% higher than the baseline scenario projections of 4.6% at the end of 2026 and 4.0% higher than
the baseline projection of 4.5% at the end of 2027. In addition, GDP is significantly lower in the adverse scenario,
with GDP turning negative for the remainder of 2026 before turning positive in 2027 but staying below 2%.
To demonstrate the sensitivity to key economic parameters used in the calculation of our ACL at June 30, 2026,
management calculated the difference between our quantitative ACL and this 100% adverse scenario. Excluding
consideration of qualitative adjustments, this sensitivity analysis would result in a hypothetical increase in our ACL of
approximately $1.3 billion at June 30, 2026.
The resulting difference is not intended to represent an expected increase in allowance levels for a number of
reasons including the following:
•Management uses a weighted approach applied to multiple economic scenarios for its allowance estimation
process;
•The highly uncertain economic environment;
•The difficulty in predicting the inter-relationships between the economic parameters used in the various
economic scenarios; and
•The sensitivity estimate does not account for any general reserve components and associated risk profile
adjustments incorporated by management as part of its overall allowance framework.
We regularly review our ACL for appropriateness by performing on-going evaluations of the loan and lease
portfolio. In doing so, we consider factors such as the differing economic risks associated with each loan category,
the financial condition of specific borrowers, the level of delinquent loans, the value of any collateral and, where
applicable, the existence of any guarantees or other documented support. We also evaluate the impact of changes
in key economic parameters and overall economic conditions on the ability of borrowers to meet their financial
obligations when quantifying our exposure to credit losses and assessing the appropriateness of our ACL at each
reporting date. Large loan exposures may be addressed through a portfolio heterogeneity reserve. We also consider
how significant changes in underwriting policies and procedures could impact the ACL, including consideration of
material changes in portfolio growth rates or credit terms. Any changes to management and staffing that could
impact lending, collections, or other relevant departments that could increase risk within the allowance process are
also contemplated. Observed changes in the quality of the credit review process identified by the second and third
line reviews are also given appropriate consideration.
40 Huntington Bancshares Incorporated
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There is no certainty that our ACL will be appropriate over time to cover losses in our portfolio as economic and
market conditions may ultimately differ from our reasonable and supportable forecast. Additionally, events
adversely affecting specific customers, industries, or our markets such as geopolitical instability or risks of elevated
interest rates for longer including a near-term recession, could severely impact our current expectations. If the credit
quality of our customer base materially deteriorates or the risk profile of a market, industry, or group of customers
changes materially, our net income and capital could be materially adversely affected which, in turn could have a
material adverse effect on our financial condition and results of operations. The extent to which the geopolitical
instability and risks of elevated interest rates will continue to negatively impact our businesses, financial condition,
liquidity, and results will depend on future developments, which are highly uncertain and cannot be forecasted with
precision at this time. For more information, see Note 5 - “Loans and Leases” and Note 6 - “Allowance For Credit
Losses” of the Notes to Unaudited Consolidated Financial Statements.
Acquisition Fair Value Measurements
The acquisition method of accounting requires assets and liabilities in business combinations to be recorded at
their estimated fair values as of the date of acquisition. To estimate fair value, we apply various valuation
methodologies to assets acquired and liabilities assumed that often involve significant judgment. Examples of such
estimates include loans and core deposit intangible assets, both of which we developed using an income approach.
To value loans, management incorporated assumptions such as discount rates, prepayment speeds, expected credit
losses, and recovery speeds based on recent origination and market data. The methodology used to value CDI assets
considered the cost savings generated from the deposits relative to an alternative source of funds. Management
incorporated assumptions in the CDI valuation such as customer attrition, discount rates, alternative cost of funding,
and net maintenance costs. Changes in these assumptions could result in materially different fair value
measurements that may impact the Company’s financial condition, results of operations, or disclosures. Discussion
of the assumptions and estimates used by us to assess and determine fair values associated with business
combinations can be found in Note 3 - “Business Combinations” of the Notes to Unaudited Consolidated Financial
Statements.
Goodwill
Subsequent to the completion of our annual impairment test, as described in the Critical Accounting Policies and
Use of Significant Estimates section within the MD&A of Huntington’s 2025 Annual Report on Form 10-K, we
completed the acquisitions of Veritex and Cadence, which resulted in the recognition of additional goodwill of $450
million and $3.5 billion, respectively. Because this goodwill arose after our annual testing date, it was not included in
the annual impairment analysis performed as of October 1, 2025. However, the additions of Veritex and Cadence did
not change our conclusion with respect to goodwill impairment and no triggering event occurred through the end of
the second quarter of 2026 that required a reassessment of goodwill. The goodwill recognized in connection with
the acquisitions has been assigned to our reporting units based on our assessment of how the acquired business will
be integrated and how its operations will be managed. For more information, see Note 8 - “Goodwill and Other
Intangible Assets” of the Notes to the Unaudited Consolidated Financial Statements.
Recent Accounting Pronouncements and Developments
Note 2 - “Accounting Standards Update” of the Notes to Unaudited Consolidated Financial Statements discusses,
if applicable, new accounting pronouncements adopted during 2026 and the expected impact of accounting
pronouncements recently issued but not yet required to be adopted. To the extent the adoption of new accounting
standards materially affects financial condition, results of operations, or liquidity, the impacts are discussed in the
applicable section of this MD&A and the Notes to Unaudited Consolidated Financial Statements.
2026 2Q Form 10-Q 41
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Item 1: Financial Statements
Huntington Bancshares Incorporated
Consolidated Balance Sheets (Unaudited)
At June 30,
At December 31,
(dollar amounts in millions)
2026
2025
Assets
Cash and due from banks
$3,330
$1,783
Interest-earning deposits with banks
12,714
12,295
Trading account assets
326
63
Available-for-sale securities
35,206
26,132
Held-to-maturity securities
14,384
15,258
Other securities
1,383
994
Loans held for sale (includes $1,287 and $885, respectively, measured at fair value)
1,886
1,415
Loans and leases (includes $164 and $167, respectively, measured at fair value)
189,422
149,642
Allowance for loan and lease losses
(3,249)
(2,537)
Net loans and leases (1)
186,173
147,105
Bank-owned life insurance
3,676
2,902
Accrued income and other receivables
2,960
2,621
Premises and equipment
2,171
1,321
Goodwill
9,527
5,997
Servicing rights and other intangible assets
1,691
752
Other assets (1)
8,557
6,468
Total assets
$283,984
$225,106
Liabilities and shareholders’ equity
Liabilities
Deposits:
Demand deposits—noninterest-bearing
$40,129
$32,205
Interest-bearing
182,337
144,405
Total deposits
222,466
176,610
Short-term borrowings
3,111
1,261
Long-term debt (1) (includes $1,250 and $1,161, respectively, measured at fair value)
18,738
17,221
Other liabilities (1)
7,004
5,635
Total liabilities
251,319
200,727
Commitments and Contingent Liabilities (Note 17)
Shareholders’ equity
Preferred stock
2,881
2,731
Common stock
20
16
Capital surplus
25,150
17,244
Less treasury shares, at cost
(94)
(92)
Accumulated other comprehensive income (loss)
(2,213)
(1,908)
Retained earnings
6,880
6,351
Total Huntington shareholders’ equity
32,624
24,342
Non-controlling interest
41
37
Total equity
32,665
24,379
Total liabilities and equity
$283,984
$225,106
Common shares authorized (par value of $0.01)
2,250,000,000
2,250,000,000
Common shares outstanding
2,020,414,826
1,567,732,506
Treasury shares outstanding
7,152,410
7,187,541
Preferred stock, authorized shares
6,617,808
6,617,808
Preferred shares outstanding
891,900
885,000
(1)Includes VIE balances in net loans and leases, other assets, long-term debt, and other liabilities of $493 million, $468 million, $428 million, and $134
million, respectively, at June 30, 2026, and $669 million, $431 million, $600 million, and $152 million, respectively, at December 31, 2025. See Note 16 -
“Variable Interest Entities” for additional information.
See Notes to Unaudited Consolidated Financial Statements
42 Huntington Bancshares Incorporated
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Huntington Bancshares Incorporated
Consolidated Statements of Income (Unaudited)
Three Months Ended
Six Months Ended
(dollar amounts in millions, except per share data, share count in thousands)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Interest and fee income:
Loans and leases
$2,772
$1,971
$5,290
$3,876
Available-for-sale securities
Taxable
285
278
543
565
Tax-exempt
34
31
67
65
Held-to-maturity securities—taxable
97
107
196
215
Other securities—taxable
17
12
33
24
Other
177
157
339
300
Total interest income
3,382
2,556
6,468
5,045
Interest expense:
Deposits
1,048
822
1,968
1,632
Short-term borrowings
18
13
34
27
Long-term debt
264
254
523
493
Total interest expense
1,330
1,089
2,525
2,152
Net interest income
2,052
1,467
3,943
2,893
Provision for credit losses
132
103
290
218
Net interest income after provision for credit losses
1,920
1,364
3,653
2,675
Noninterest income:
Payments and cash management revenue
204
165
391
320
Wealth and asset management revenue
134
102
254
203
Customer deposit and loan fees
128
95
238
181
Capital markets and advisory fees
140
84
272
151
Mortgage banking income
53
28
85
59
Insurance income
21
19
42
39
Leasing revenue
29
10
42
24
Net gains (losses) on sales of securities
2
(58)
15
(58)
Other noninterest income
74
26
128
46
Total noninterest income
785
471
1,467
965
Noninterest expense:
Personnel costs
1,010
722
2,002
1,393
Outside data processing and other services
326
182
637
352
Equipment
96
68
189
135
Net occupancy
90
54
175
119
Professional services
31
22
75
44
Marketing
38
28
75
57
Deposit and other insurance expense
38
20
73
57
Amortization of intangibles
54
11
95
22
Lease financing equipment depreciation
2
2
5
6
Other noninterest expense
124
88
257
164
Total noninterest expense
1,809
1,197
3,583
2,349
Income before income taxes
896
638
1,537
1,291
Provision for income taxes
165
96
279
218
Income after income taxes
731
542
1,258
1,073
Income attributable to non-controlling interest
4
6
8
10
Net income attributable to Huntington
727
536
1,250
1,063
Dividends on preferred shares
41
27
82
54
Net income applicable to common shares
$686
$509
$1,168
$1,009
Average common shares—basic
2,021,373
1,457,309
1,945,805
1,455,904
Average common shares—diluted
2,048,311
1,480,996
1,974,952
1,481,541
Per common share:
Net income—basic
$0.34
$0.35
$0.60
$0.69
Net income—diluted
0.33
0.34
0.59
0.68
See Notes to Unaudited Consolidated Financial Statements
2026 2Q Form 10-Q 43
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Huntington Bancshares Incorporated
Consolidated Statements of Comprehensive Income (Unaudited)
Three Months Ended
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Net income attributable to Huntington
$727
$536
$1,250
$1,063
Other comprehensive (loss) income, net of tax:
Unrealized (losses) gains on available-for-sale securities, net
of hedges
(36)
97
(112)
352
Net change related to cash flow hedges on loans
(118)
83
(194)
260
Translation adjustments, net of hedges
(1)
6
(1)
7
Change in accumulated unrealized losses for pension and
other post-retirement obligations
1
1
2
1
Other comprehensive (loss) income, net of tax
(154)
187
(305)
620
Comprehensive income attributable to Huntington
573
723
945
1,683
Comprehensive income attributed to non-controlling interest
4
6
8
10
Comprehensive income
$577
$729
$953
$1,693
See Notes to Unaudited Consolidated Financial Statements
44 Huntington Bancshares Incorporated
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Huntington Bancshares Incorporated
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
(dollar amounts in millions, share amounts in thousands)
Preferred
Stock
Common Stock
Capital
Surplus
Treasury Stock
AOCI
Retained
Earnings
Huntington
Shareholders’
Equity
Non-
controlling
Interest
Total
Equity
Amount
Shares
Amount
Shares
Amount
Three months ended June 30, 2026
Balance, beginning of period
$2,881
2,034,400
$20
$25,273
(7,269)
$(95)
$(2,059)
$6,515
$32,535
$46
$32,581
Net income
727
727
4
731
Other comprehensive loss, net of tax
(154)
(154)
(154)
Repurchases of common stock
(9,763)
—
(159)
(159)
(159)
Cash dividends declared:
Common ($0.155 per share)
(319)
(319)
(319)
Preferred
(41)
(41)
(41)
Recognition of the fair value of share-based compensation
50
50
50
Other share-based compensation activity
2,930
—
(15)
(2)
(17)
(17)
Other
1
117
1
2
(9)
(7)
Balance, end of period
$2,881
2,027,567
$20
$25,150
(7,152)
$(94)
$(2,213)
$6,880
$32,624
$41
$32,665
Three months ended June 30, 2025
Balance, beginning of period
$1,989
1,463,976
$15
$15,479
(7,164)
$(90)
$(2,433)
$5,474
$20,434
$52
$20,486
Net income
536
536
6
542
Other comprehensive income, net of tax
187
187
187
Cash dividends declared:
Common ($0.155 per share)
(230)
(230)
(230)
Preferred
(27)
(27)
(27)
Recognition of the fair value of share-based compensation
32
32
32
Other share-based compensation activity
1,797
—
(7)
(2)
(9)
(9)
Other
2
191
3
5
(16)
(11)
Balance, end of period
$1,989
1,465,773
$15
$15,506
(6,973)
$(87)
$(2,246)
$5,751
$20,928
$42
$20,970
See Notes to Unaudited Consolidated Financial Statements
2026 2Q Form 10-Q 45
Table of Contents
Huntington Bancshares Incorporated
Consolidated Statements of Changes in Shareholders’ Equity (continued) (Unaudited)
(dollar amounts in millions, share amounts in thousands)
Preferred
Stock
Common Stock
Capital
Surplus
Treasury Stock
AOCI
Retained
Earnings
Huntington
Shareholders’
Equity
Non-
controlling
Interest
Total
Equity
Amount
Shares
Amount
Shares
Amount
Six months ended June 30, 2026
Balance, beginning of period
$2,731
1,574,920
$16
$17,244
(7,188)
$(92)
$(1,908)
$6,351
$24,342
$37
$24,379
Net income
1,250
1,250
8
1,258
Other comprehensive loss, net of tax
(305)
(305)
(305)
Cadence acquisition:
Issuance of common stock
461,548
4
8,064
8,068
8,068
Conversion of equity awards
117
117
117
Issuance of Series L Preferred Stock
150
—
150
150
Repurchases of common stock
(18,716)
—
(309)
(309)
(309)
Cash dividends declared:
Common ($0.31 per share)
(637)
(637)
(637)
Preferred
(82)
(82)
(82)
Recognition of the fair value of share-based compensation
95
95
95
Other share-based compensation activity
9,815
—
(64)
(2)
(66)
(66)
Other
3
36
(2)
1
(4)
(3)
Balance, end of period
$2,881
2,027,567
$20
$25,150
(7,152)
$(94)
$(2,213)
$6,880
$32,624
$41
$32,665
Six months ended June 30, 2025
Balance, beginning of period
$1,989
1,460,620
$15
$15,484
(6,984)
$(86)
$(2,866)
$5,204
$19,740
$42
$19,782
Net income
1,063
1,063
10
1,073
Other comprehensive income, net of tax
620
620
620
Cash dividends declared:
Common ($0.31 per share)
(460)
(460)
(460)
Preferred
(54)
(54)
(54)
Recognition of the fair value of share-based compensation
53
53
53
Other share-based compensation activity
5,153
—
(33)
(2)
(35)
(35)
Other
2
11
(1)
1
(10)
(9)
Balance, end of period
$1,989
1,465,773
$15
$15,506
(6,973)
$(87)
$(2,246)
$5,751
$20,928
$42
$20,970
See Notes to Unaudited Consolidated Financial Statements
46 Huntington Bancshares Incorporated
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Huntington Bancshares Incorporated
Consolidated Statements of Cash Flows (Unaudited)
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
Operating activities
Net income
$1,258
$1,073
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses
290
218
Depreciation, amortization, and accretion
383
397
Share-based compensation expense
95
53
Deferred income tax benefit
(203)
(173)
Net gains on sales of securities
(15)
58
Net change in:
Trading account assets
(263)
(428)
Loans held for sale
289
(226)
Other assets
(1,132)
(210)
Short-term borrowings
191
403
Other liabilities
847
(81)
Other, net
(93)
(17)
Net cash provided by operating activities
1,647
1,067
Investing activities
Change in interest-earning deposits with banks
50
185
Proceeds from:
Maturities and calls of available-for-sale securities
9,137
2,694
Maturities and calls of held-to-maturity securities
882
925
Maturities and calls of other securities
419
65
Sales of available-for-sale securities
4,538
850
Sales of other securities
17
—
Purchases of available-for-sale securities
(13,917)
(3,907)
Purchases of held-to-maturity securities
—
(515)
Purchases of other securities
(553)
(120)
Net proceeds from sales of loans and leases
335
161
Principal payments received under direct finance leases
972
740
Net loan and lease activity, excluding sales and purchases
(4,848)
(5,861)
Purchases of premises and equipment
(220)
(108)
Purchases of loans and leases
(302)
(317)
Net accrued income and other receivables activity
(4)
532
Net cash and cash equivalents received from business combinations
1,680
—
Other, net
24
31
Net cash used in investing activities
(1,790)
(4,645)
Financing activities
Increase in deposits
2,326
932
Net change in short-term borrowings
182
(138)
Net proceeds from issuance of long-term debt
6,914
2,001
Repayment of long-term debt
(6,151)
(1,136)
Dividends paid on preferred stock
(84)
(54)
Dividends paid on common stock
(564)
(453)
Repurchases of common stock
(309)
—
Other, net
(67)
(62)
Net cash provided by financing activities
2,247
1,090
Increase (decrease) in cash and cash equivalents
2,104
(2,488)
Cash and cash equivalents at beginning of period (1)
13,495
12,847
Cash and cash equivalents at end of period (1)
$15,599
$10,359
2026 2Q Form 10-Q 47
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Huntington Bancshares Incorporated
Consolidated Statements of Cash Flows (continued) (Unaudited)
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
Supplemental disclosures:
Interest paid
$2,496
$2,122
Income taxes paid
95
159
Non-cash activities
Loans transferred to held-for-sale from portfolio
983
168
Loans transferred to portfolio from held-for-sale
36
11
Business combination:
Fair value of tangible assets acquired
50,341
—
Goodwill and other intangible assets
4,502
—
Fair value of liabilities assumed
46,508
—
Common stock and equity-based awards issued
8,185
—
Preferred stock issued
150
—
(1)Includes cash and due from banks and interest-earning deposits at the FRB, included within Interest-earning deposits with banks on our Unaudited
Consolidated Balance Sheets.
See Notes to Unaudited Consolidated Financial Statements
48 Huntington Bancshares Incorporated
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Huntington Bancshares Incorporated
Notes to Unaudited Consolidated Financial Statements
1. BASIS OF PRESENTATION
The accompanying interim Unaudited Consolidated Financial Statements of Huntington reflect all adjustments
consisting of normal recurring accruals which are, in the opinion of management, necessary for a fair statement of
the consolidated financial position, the results of operations, and cash flows for the periods presented. These
interim Unaudited Consolidated Financial Statements have been prepared according to the rules and regulations of
the SEC and, therefore, certain information and footnote disclosures normally included in annual financial
statements prepared in accordance with GAAP have been omitted. The Notes to Consolidated Financial Statements
appearing in Huntington’s 2025 Annual Report on Form 10-K, which include descriptions of significant accounting
policies, as updated by the information contained in this report, should be read in conjunction with these interim
financial statements.
In conjunction with applicable accounting standards, all material subsequent events have been either recognized
in the interim Unaudited Consolidated Financial Statements or disclosed in the Notes to Unaudited Consolidated
Financial Statements. There were no other material subsequent events to disclose for the current period.
2. ACCOUNTING STANDARDS UPDATE
Accounting standards not yet effective
Standard
Summary of guidance
Effects on financial Statements
ASU 2025-09 -
Derivatives and
Hedging (Topic 815):
Hedge Accounting
Improvements
•More closely aligns hedge accounting with the economics of an
entity’s risk management activities.
•Allows grouping of forecasted transactions with similar risk
exposure.
•Enables hedging of variable price components of forecasted
purchases or sales of nonfinancial assets.
•Introduces a model for hedging interest payments on debt
instruments with multiple rate options and allows a borrower to
select a documented interest rate index and/or tenor without
automatically discontinuing hedge accounting.
•Removes the requirement for net written option test in certain
compound derivative hedges.
•Effective for interim and annual reporting
periods beginning after December 15,
2026, with early adoption permitted on any
date on or after issuance of the ASU.
•The amendments should be applied
prospectively to all hedging relationships
beginning on or after the date of adoption.
•In the period of adoption, an entity must
disclose the nature of, and reason for, the
change in accounting principle and the
method of applying the change.
•Huntington is in the process of evaluating
the impact of this ASU on its consolidated
financial statements.
3. BUSINESS COMBINATIONS
Veritex Acquisition
On October 20, 2025, Huntington completed the acquisition of Veritex Holdings, Inc. (“Veritex”), a bank holding
company headquartered in Dallas, Texas, pursuant to the Agreement and Plan of Merger dated July 13, 2025
(“Veritex Merger Agreement”). Upon completion of the acquisition, Veritex merged with and into Huntington, with
Huntington as the surviving company, immediately followed by the merger of Veritex’s wholly owned subsidiary
bank, Veritex Community Bank, with and into Huntington’s wholly owned subsidiary bank, Huntington National
Bank, with Huntington National Bank as the surviving bank.
2026 2Q Form 10-Q 49
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Under the terms of the Veritex Merger Agreement, Huntington issued 1.95 shares of its common stock for each
outstanding share of Veritex common stock (“Veritex Merger Consideration”), in a 100% stock transaction, with cash
paid in lieu of fractional shares. In addition, each holder of an outstanding Veritex stock option received cash equal
to the per-share value of the Veritex Merger Consideration over the per-share exercise price, while any Veritex stock
option with a per-share exercise price that was equal to or greater than the per share value of the Merger
Consideration was cancelled for no consideration, and each outstanding restricted stock unit representing a right to
receive Veritex common stock was converted into a restricted stock unit representing a right to receive Huntington’s
common stock as adjusted by the 1.95 exchange ratio. Upon completion of the merger, Huntington issued 107
million shares of its common stock to Veritex shareholders of record as of the merger date, in addition to 1 million
shares issued upon the conversion of certain Veritex equity awards, resulting in total consideration from the
transaction of $1.7 billion based on the closing price of the Company’s common stock on October 17, 2025.
The acquisition of Veritex constituted a business combination in accordance with ASC Topic 805, Business
Combinations. Accordingly, the assets acquired and liabilities assumed were recorded at fair value as of the
acquisition date. The determination of fair value requires management to make estimates related to discount rates,
expected future cash flows, market conditions and other future events that are highly subjective in nature and
subject to change. Fair value estimates related to the assets and liabilities from Veritex are subject to adjustment for
up to one year after the closing date of the acquisition as additional information becomes available. As of June 30,
2026, management completed its review of information related to events or circumstances existing as of the
acquisition date.
Allocation of Purchase Consideration
The following table provides the allocation of the purchase consideration to the assets acquired and liabilities
assumed from Veritex as of October 20, 2025.
(dollar amounts in millions)
Fair Value
Purchase consideration
Fair value of common stock issued
$1,659
Fair value of equity-based awards
23
Cash
2
Total consideration
1,684
Assets acquired
Cash and due from banks
19
Interest-earning deposits with banks
943
Available-for-sale securities
1,274
Other securities
76
Loans held for sale
83
Loans and leases
9,300
Allowance for loan and lease losses
(143)
Net loans and leases
9,157
Bank-owned life insurance
87
Premises and equipment
135
Servicing rights and other intangible assets
105
Other assets
147
Total assets acquired
12,026
Liabilities assumed
Deposits
10,516
Long-term debt
159
Other liabilities
117
Total liabilities assumed
10,792
Fair value of net assets acquired
1,234
Goodwill
$450
50 Huntington Bancshares Incorporated
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In connection with the Veritex acquisition, Huntington recorded goodwill of $450 million, none of which is
anticipated to be deductible for tax purposes. The goodwill is primarily attributable to expected synergies,
operational efficiencies, and other factors to arise from the transaction. See Note 8 - “Goodwill and Other Intangible
Assets” to the Consolidated Financial Statements appearing in Huntington’s 2025 Annual Report on Form 10-K for
information regarding the allocation of goodwill to the Company’s reportable segments as a result of the acquisition,
as well as the carrying amounts and amortization of core deposit and other intangible assets.
See Note 3 - “Business Combinations” to the Consolidated Financial Statements appearing in Huntington’s 2025
Annual Report on Form 10-K for descriptions of the methods used to determine the fair values of significant assets
acquired and liabilities assumed in the Veritex acquisition.
Cadence Acquisition
On February 1, 2026, Huntington completed the acquisition of Cadence Bank (“Cadence”), a regional bank
headquartered in Houston, Texas and Tupelo, Mississippi, pursuant to an agreement by and among Huntington,
Huntington National Bank, and Cadence, whereby Cadence merged with and into Huntington National Bank, with
Huntington National Bank as the surviving bank (“Cadence Merger Agreement”).
Under the terms of the Cadence Merger Agreement, Huntington issued 2.475 shares of common stock for each
outstanding common share of Cadence in a 100% stock transaction, with cash paid in lieu of fractional shares. In
addition, each outstanding share of 5.50% Series A Non-Cumulative Perpetual Preferred Stock of Cadence was
converted into the right to receive one depositary share representing 1/1000 of a share of a newly created 5.50%
Series L Non-Cumulative Perpetual Preferred Stock of Huntington. Upon completion of the merger, Huntington
issued 462 million shares of its common stock to Cadence shareholders of record as of the merger date, in addition
to the conversion of certain Cadence equity awards into Huntington equity awards and the issuance of the
depositary shares representing the newly created Series L Preferred Stock, resulting in total consideration from the
transaction of $8.3 billion based on the closing price of the Company’s common stock on January 30, 2026.
The acquisition of Cadence constituted a business combination in accordance with ASC Topic 805, Business
Combinations. Accordingly, the assets acquired and liabilities assumed were recorded at fair value as of the
acquisition date. The determination of fair value requires management to make estimates related to discount rates,
expected future cash flows, market conditions and other future events that are highly subjective in nature and
subject to change. Fair value estimates related to the assets and liabilities from Cadence are subject to adjustment
for up to one year after the closing date of the acquisition as additional information becomes available. The
purchase consideration allocation is considered preliminary as certain estimates related to the assets acquired and
liabilities assumed are subject to continuing refinement. Valuations subject to refinement include, but are not
limited to, loans, certain other assets, and the core deposit intangible asset.
2026 2Q Form 10-Q 51
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Preliminary Allocation of Purchase Consideration
The following table provides the preliminary allocation of the purchase consideration to the assets acquired and
liabilities assumed from Cadence as of February 1, 2026.
(dollar amounts in millions)
Fair Value
Purchase consideration
Fair value of common stock issued
$8,068
Fair value of equity-based awards
117
Fair value of preferred stock issued
150
Total consideration
8,335
Assets acquired
Cash and due from banks
490
Interest-earning deposits with banks
1,368
Available-for-sale securities
8,964
Other securities
259
Loans held for sale
151
Loans and leases
36,912
Allowance for loan and lease losses
(567)
Net loans and leases
36,345
Bank-owned life insurance
768
Premises and equipment
738
Servicing rights and other intangible assets
1,005
Other assets
1,258
Total assets acquired
51,346
Liabilities assumed
Deposits
43,530
Short-term borrowings
1,553
Long-term debt
945
Other liabilities
480
Total liabilities assumed
46,508
Preliminary fair value of net assets acquired
4,838
Preliminary goodwill
$3,497
In connection with the Cadence acquisition, Huntington recorded preliminary goodwill of $3.5 billion, none of
which is anticipated to be deductible for tax purposes. The preliminary goodwill is primarily attributable to expected
synergies, operational efficiencies, and other factors to arise from the transaction. Information regarding the
allocation of goodwill to the Company’s reportable segments as a result of the acquisition, as well as the carrying
amounts of core deposit and other intangible assets, are provided in Note 8 - “Goodwill and Other Intangible Assets”
of the Notes to Unaudited Consolidated Financial Statements.
The following is a description of the methods used to determine the fair values of significant assets acquired and
liabilities assumed.
Cash and due from banks and interest-earning deposits with banks: The carrying amount of these assets was a
reasonable estimate of fair value based on the short-term nature of these assets.
Securities: Fair values for securities were based on quoted market prices or recent transactions, where available. If
quoted market prices were not available, fair value estimates were based on observable inputs including quoted
market prices for similar instruments, quoted market prices that were not in an active market or other inputs that
were observable in the market. In the absence of observable inputs, fair value was estimated based on pricing
models and/or discounted cash flow methodologies.
52 Huntington Bancshares Incorporated
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Loans and leases: Fair values for loans and leases were based on a discounted cash flow methodology that
considered factors including the type of loan and lease and related collateral, classification status, fixed or variable
interest rate, term, amortization status and current discount rates. Loans and leases were grouped together
according to similar characteristics when applying various valuation techniques. The discount rates used for loans
and leases were based on current market rates for new originations of comparable loans and leases and include
adjustments for liquidity. The discount rate does not include a factor for credit losses as that has been included as a
reduction to the estimated cash flows. Purchased loans and leases that reflect a more-than-insignificant
deterioration of credit from origination are considered PCD. For PCD loans and leases, the initial estimate of
expected credit losses is recognized in the ALLL on the date of acquisition using the same methodology as other
loans and leases held-for-investment. In addition, Huntington adopted ASU 2025-08 in the fourth quarter of 2025.
Accordingly, the initial estimate of expected credit losses recognized in the ALLL included both PCD and non-PCD
loans which were deemed purchased seasoned loans.
The following table includes the fair value and unpaid principal balance of the acquired loans and leases.
(dollar amounts in millions)
Unpaid principal
balance
Premium/
(discount)
Loans and leases
Allowance for
loan losses
Net loans and
leases
Non-PCD loans
$31,879
$(390)
$31,489
$(245)
$31,244
PCD loans
5,614
(191)
5,423
(322)
5,101
Total
$37,493
$(581)
$36,912
$(567)
$36,345
CDI: Huntington recorded a CDI of $855 million as of the acquisition date, which represents the low cost of funding
that acquired core deposits provide relative to the Company’s marginal cost of funds. The fair value was estimated
based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition
rates, net maintenance cost of the deposit base, alternative cost of funds, and the interest costs associated with
customer deposits. The CDI is being amortized over 10 years based upon the period over which estimated economic
benefits are expected to be received.
Deposits: The fair values used for the demand and savings deposits by definition equal the amount payable on
demand at the acquisition date. The fair values for time deposits were estimated using a discounted cash flow
calculation that applies interest rates currently being offered to the contractual interest rates on such time deposits.
2026 2Q Form 10-Q 53
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Pro Forma Financial Information (Unaudited)
Huntington's operating results for the three and six months ended June 30, 2026 include the operating results of
the acquired assets and assumed liabilities of Veritex subsequent to the acquisition on October 20, 2025 and
Cadence subsequent to the acquisition on February 1, 2026. Due to the streamlining and integration of certain
operating activities into those of Huntington post-acquisition, historical reporting for the former Veritex and
Cadence operations is impracticable, and thus disclosures of the revenue from the assets acquired and income
before income taxes are impracticable for the periods subsequent to the acquisitions.
The following table presents unaudited pro forma combined information as if the acquisitions of Veritex and
Cadence had occurred on January 1, 2025 under the “Unaudited Pro Forma Combined Results” columns. The pro
forma adjustments give effect to any change in interest income due to the accretion of the net discount associated
with the fair value adjustments to acquired loans and leases, any change in interest expense due to estimated
premium amortization/discount accretion associated with the fair value adjustments to acquired interest-bearing
deposits and long-term debt, and the amortization of the CDI that would have resulted had the deposits been
acquired as of January 1, 2025. Pro forma combined results for the three and six months ended June 30, 2026
include $152 million and $473 million, respectively, of acquisition-related expenses attributable to the acquisitions,
which primarily included, but were not limited to, severance costs, professional services, and data processing fees.
Pro forma combined results also include adjustments for the elimination of Veritex’s and Cadence’s intangible
amortization expense and Cadence’s interest income and interest expense related to premium amortization/
discount accretion from prior acquisitions, and the related income tax effects. The pro forma information does not
necessarily reflect the results of operations that would have occurred had Huntington acquired Veritex and Cadence
on January 1, 2025. Furthermore, cost savings and other business synergies related to the acquisition are not
reflected in the pro forma combined amounts.
Unaudited Pro Forma Combined Results
Three months ended
Six months ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Net interest income
$2,044
$1,969
$4,077
$3,881
Noninterest income
785
584
1,524
1,179
Net income attributable to Huntington
726
677
1,200
1,341
54 Huntington Bancshares Incorporated
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4. INVESTMENT AND OTHER SECURITIES
Debt securities are classified as held-to-maturity when Huntington has the intent and ability to hold the
securities to their maturity. All other debt and equity securities are classified as either available-for-sale or other
securities. The following tables provide amortized cost, fair value, and gross unrealized gains and losses by
investment category.
Unrealized
(dollar amounts in millions)
Amortized
Cost (1)(2)
Gross
Gains
Gross
Losses
Fair Value
At June 30, 2026
Available-for-sale securities:
U.S. Treasury
$8,799
$3
$(25)
$8,777
Federal agencies:
Residential MBS
13,377
3
(1,425)
11,955
Residential CMO
6,660
13
(340)
6,333
Commercial MBS
3,232
1
(666)
2,567
Other agencies
477
—
(3)
474
Total U.S. Treasury, federal agency, and other agency securities
32,545
20
(2,459)
30,106
Municipal securities
4,752
5
(108)
4,649
Corporate debt
186
—
(17)
169
Asset-backed securities
186
—
(7)
179
Private-label CMO
100
—
(7)
93
Other securities/sovereign debt
10
—
—
10
Total available-for-sale securities
$37,779
$25
$(2,598)
$35,206
Held-to-maturity securities:
U.S. Treasury
$2,117
$2
$(8)
$2,111
Federal agencies:
Residential MBS
7,350
—
(964)
6,386
Residential CMO
3,665
—
(548)
3,117
Commercial MBS
1,213
—
(187)
1,026
Other agencies
38
—
(2)
36
Total U.S. Treasury, federal agency, and other agency securities
14,383
2
(1,709)
12,676
Municipal securities
1
—
—
1
Total held-to-maturity securities
$14,384
$2
$(1,709)
$12,677
Other securities, at cost:
Non-marketable equity securities:
FRB stock
$882
$—
$—
$882
FHLB stock
367
—
—
367
Other non-marketable equity securities
61
—
—
61
Other securities, at fair value:
Mutual funds
30
—
—
30
Equity securities
33
10
—
43
Total other securities
$1,373
$10
$—
$1,383
(1)Amortized cost amounts exclude accrued interest receivable, which is recorded within accrued income and other receivables on the Unaudited
Consolidated Balance Sheets. At June 30, 2026, accrued interest receivable on AFS securities and HTM securities totaled $140 million and $42 million,
respectively.
(2)Excluded from the amortized cost are portfolio level basis adjustments for securities designated in fair value hedges under the portfolio layer method. The
basis adjustments totaled $222 million and represent a reduction to the amortized cost of the securities being hedged. The securities being hedged under
the portfolio layer method are primarily Residential CMO and Residential MBS securities.
2026 2Q Form 10-Q 55
Table of Contents
Unrealized
(dollar amounts in millions)
Amortized
Cost (1)(2)
Gross
Gains
Gross
Losses
Fair Value
At December 31, 2025
Available-for-sale securities:
U.S. Treasury
$4,590
$45
$—
$4,635
Federal agencies:
Residential MBS
11,031
3
(1,365)
9,669
Residential CMO
5,496
9
(308)
5,197
Commercial MBS
2,488
—
(657)
1,831
Other agencies
153
—
(3)
150
Total U.S. Treasury, federal agency, and other agency securities
23,758
57
(2,333)
21,482
Municipal securities
4,215
9
(81)
4,143
Corporate debt
193
—
(15)
178
Asset-backed securities
229
—
(8)
221
Private-label CMO
105
—
(7)
98
Other securities/sovereign debt
10
—
—
10
Total available-for-sale securities
$28,510
$66
$(2,444)
$26,132
Held-to-maturity securities:
U.S. Treasury
$2,349
$19
$—
$2,368
Federal agencies:
Residential MBS
7,718
1
(941)
6,778
Residential CMO
3,865
5
(520)
3,350
Commercial MBS
1,278
—
(184)
1,094
Other agencies
47
—
(2)
45
Total U.S. Treasury, federal agency, and other agency securities
15,257
25
(1,647)
13,635
Municipal securities
1
—
—
1
Total held-to-maturity securities
$15,258
$25
$(1,647)
$13,636
Other securities, at cost:
Non-marketable equity securities:
FRB stock
$616
$—
$—
$616
FHLB stock
288
—
—
288
Other non-marketable equity securities
48
—
—
48
Other securities, at fair value:
Mutual funds
30
—
—
30
Equity securities
12
—
—
12
Total other securities
$994
$—
$—
$994
(1)Amortized cost amounts exclude accrued interest receivable, which is recorded within accrued income and other receivables on the Unaudited
Consolidated Balance Sheets. At December 31, 2025, accrued interest receivable on AFS securities and HTM securities totaled $106 million and $44 million,
respectively.
(2)Excluded from the amortized cost are portfolio level basis adjustments for securities designated in fair value hedges under the portfolio layer method. The
basis adjustments totaled $177 million and represent a reduction to the amortized cost of the securities being hedged. The securities being hedged under
the portfolio layer method are primarily Residential CMO and Residential MBS securities.
56 Huntington Bancshares Incorporated
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The following table provides the amortized cost and fair value of securities by contractual maturity. Expected
maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or
without incurring penalties.
At June 30, 2026
At December 31, 2025
(dollar amounts in millions)
Amortized Cost
Fair Value
Amortized Cost
Fair Value
Available-for-sale securities:
Under 1 year
$5,114
$5,107
$1,369
$1,365
After 1 year through 5 years
7,140
7,069
5,581
5,595
After 5 years through 10 years
2,222
2,088
1,899
1,784
After 10 years
23,303
20,942
19,661
17,388
Total available-for-sale securities
$37,779
$35,206
$28,510
$26,132
Held-to-maturity securities:
Under 1 year
$551
$552
$603
$604
After 1 year through 5 years
1,587
1,580
1,773
1,791
After 5 years through 10 years
129
119
144
134
After 10 years
12,117
10,426
12,738
11,107
Total held-to-maturity securities
$14,384
$12,677
$15,258
$13,636
The following tables provide detail on investment securities with unrealized losses aggregated by investment
category and the length of time the individual securities have been in a continuous loss position.
Less than 12 Months
Over 12 Months
Total
(dollar amounts in millions)
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
At June 30, 2026
Available-for-sale securities:
U.S. Treasury
$5,724
$(25)
$—
$—
$5,724
$(25)
Federal agencies:
Residential MBS
2,945
(34)
8,645
(1,391)
11,590
(1,425)
Residential CMO
1,754
(9)
2,335
(331)
4,089
(340)
Commercial MBS
637
(5)
1,767
(661)
2,404
(666)
Other agencies
370
(1)
73
(2)
443
(3)
Total U.S. Treasury, federal agency, and other agency
securities
11,430
(74)
12,820
(2,385)
24,250
(2,459)
Municipal securities
1,433
(22)
2,122
(86)
3,555
(108)
Corporate debt
—
—
169
(17)
169
(17)
Asset-backed securities
—
—
176
(7)
176
(7)
Private-label CMO
3
—
70
(7)
73
(7)
Total temporarily impaired available-for-sale securities
$12,866
$(96)
$15,357
$(2,502)
$28,223
$(2,598)
Held-to-maturity securities:
U.S. Treasury
$1,230
$(8)
$—
$—
$1,230
$(8)
Federal agencies:
Residential MBS
73
(1)
6,282
(963)
6,355
(964)
Residential CMO
233
(1)
2,765
(547)
2,998
(548)
Commercial MBS
—
—
1,027
(187)
1,027
(187)
Other agencies
—
—
36
(2)
36
(2)
Total U.S. Treasury, federal agency, and other agency
securities
1,536
(10)
10,110
(1,699)
11,646
(1,709)
Municipal securities
—
—
1
—
1
—
Total temporarily impaired held-to-maturity securities
$1,536
$(10)
$10,111
$(1,699)
$11,647
$(1,709)
2026 2Q Form 10-Q 57
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Less than 12 Months
Over 12 Months
Total
(dollar amounts in millions)
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
At December 31, 2025
Available-for-sale securities:
U.S. Treasury
$—
$—
$439
$—
$439
$—
Federal agencies:
Residential MBS
55
—
9,185
(1,365)
9,240
(1,365)
Residential CMO
51
—
2,665
(308)
2,716
(308)
Commercial MBS
23
—
1,782
(657)
1,805
(657)
Other agencies
15
—
74
(3)
89
(3)
Total U.S. Treasury, federal agency, and other agency
securities
144
—
14,145
(2,333)
14,289
(2,333)
Municipal securities
1,043
(14)
1,892
(67)
2,935
(81)
Corporate debt
2
—
176
(15)
178
(15)
Asset-backed securities
9
—
207
(8)
216
(8)
Private-label CMO
—
—
79
(7)
79
(7)
Total temporarily impaired available-for-sale securities
$1,198
$(14)
$16,499
$(2,430)
$17,697
$(2,444)
Held-to-maturity securities:
U.S. Treasury
$—
$—
$289
$—
$289
$—
Federal agencies:
Residential MBS
—
—
6,694
(941)
6,694
(941)
Residential CMO
48
—
2,956
(520)
3,004
(520)
Commercial MBS
—
—
1,094
(184)
1,094
(184)
Other agencies
—
—
45
(2)
45
(2)
Total U.S. Treasury, federal agency, and other agency
securities
48
—
11,078
(1,647)
11,126
(1,647)
Municipal securities
—
—
1
—
1
—
Total temporarily impaired held-to-maturity securities
$48
$—
$11,079
$(1,647)
$11,127
$(1,647)
At June 30, 2026, substantially all HTM debt securities are comprised of securities issued by government-
sponsored entities or are explicitly guaranteed by the U.S. government. In addition, there were no HTM debt
securities considered past due at June 30, 2026. Based on an evaluation of available information as of June 30, 2026,
including security type, counterparty credit quality, past events, current conditions, and reasonable and supportable
forecasts that are relevant to collectability of cash flows, Huntington does not expect to incur credit losses on any
security held in its AFS and HTM debt securities portfolio. There was no allowance related to securities as of June 30,
2026 or December 31, 2025.
The carrying value of investment securities pledged to secure public and trust deposits, trading account
liabilities, U.S. Treasury demand notes, and security repurchase agreements, and to support borrowing capacity,
totaled $37.6 billion at June 30, 2026 and $29.7 billion at December 31, 2025.
58 Huntington Bancshares Incorporated
Table of Contents
5. LOANS AND LEASES
The following table provides a detailed listing of Huntington’s loan and lease portfolio.
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
Commercial loan and lease portfolio:
Commercial and industrial
$91,378
$69,442
Commercial real estate
23,457
15,209
Lease financing
5,714
5,727
Total commercial loan and lease portfolio
120,549
90,378
Consumer loan portfolio:
Residential mortgage
33,221
24,777
Automobile
15,460
16,168
Home equity
11,884
10,395
RV and marine
5,706
5,682
Other consumer
2,602
2,242
Total consumer loan portfolio
68,873
59,264
Total loans and leases (1)(2)
189,422
149,642
Allowance for loan and lease losses
(3,249)
(2,537)
Net loans and leases
$186,173
$147,105
(1)Loans and leases are reported at principal amount outstanding, including unamortized purchase premiums and discounts, unearned income, and net direct
fees and costs associated with originating and acquiring loans and leases. The aggregate amount of these loan and lease adjustments was a net discount of
$1.5 billion and $815 million at June 30, 2026 and December 31, 2025, respectively.
(2)The total amount of accrued interest recorded for loans and leases at June 30, 2026 was $528 million and $298 million of commercial and consumer loan
and lease portfolios, respectively, and at December 31, 2025 was $358 million and $253 million of commercial and consumer loan and lease portfolios,
respectively. Accrued interest is presented in accrued income and other receivables within the Unaudited Consolidated Balance Sheets.
Lease Financing
The following table presents net investments in lease financing receivables by category.
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
Lease payments receivable
$5,319
$5,379
Estimated residual value of leased assets
1,034
1,011
Gross investment in lease financing receivables
6,353
6,390
Deferred origination costs
60
58
Deferred fees, unearned income, and other
(699)
(721)
Total lease financing receivables
$5,714
$5,727
The carrying value of residual values guaranteed was $418 million and $419 million as of June 30, 2026 and
December 31, 2025, respectively. The future lease rental payments due from customers on direct financing leases at
June 30, 2026 totaled $5.3 billion and were due as follows: $887 million in 2026, $1.0 billion in 2027, $976 million in
2028, $888 million in 2029, $676 million in 2030, and $862 million thereafter. Interest income recognized for these
types of leases was $101 million and $92 million for the three-month periods ended June 30, 2026 and 2025,
respectively. For the six-month periods ended June 30, 2026 and 2025, interest income recognized for these types of
leases was $200 million and $181 million, respectively.
2026 2Q Form 10-Q 59
Table of Contents
Nonaccrual and Past Due Loans and Leases
The following table presents NALs by loan class.
At June 30, 2026
At December 31, 2025
(dollar amounts in millions)
Nonaccrual loans and
leases with no ACL
Total nonaccrual
loans and leases
Nonaccrual loans and
leases with no ACL
Total nonaccrual
loans and leases
Commercial and industrial
$196
$986
$76
$562
Commercial real estate
27
243
81
133
Lease financing
2
8
4
8
Residential mortgage
4
223
5
107
Automobile
—
7
—
6
Home equity
—
120
—
113
RV and marine
—
2
—
2
Total nonaccrual loans and leases
$229
$1,589
$166
$931
The following table presents an aging analysis of loans and leases, by loan class.
Past Due (1)
Loans
Accounted
for Under
FVO
Total Loans
and Leases
90 or
more days
past due
and accruing
(dollar amounts in millions)
30-59
Days
60-89
Days
90 or
more days
Total
Current
At June 30, 2026
Commercial and industrial
$257
$99
$623
$979
$90,399
$—
$91,378
$2
(2)
Commercial real estate
123
22
167
312
23,145
—
23,457
—
Lease financing
31
9
8
48
5,666
—
5,714
6
Residential mortgage
454
156
559
1,169
31,888
164
33,221
391
(3)
Automobile
124
34
16
174
15,286
—
15,460
12
Home equity
92
42
106
240
11,644
—
11,884
24
RV and marine
20
10
4
34
5,672
—
5,706
3
Other consumer
22
9
5
36
2,566
—
2,602
5
Total loans and leases
$1,123
$381
$1,488
$2,992
$186,266
$164
$189,422
$443
At December 31, 2025
Commercial and industrial
$144
$78
$332
$554
$68,888
$—
$69,442
$1
(2)
Commercial real estate
31
2
101
134
15,075
—
15,209
—
Lease financing
30
32
10
72
5,655
—
5,727
9
Residential mortgage
239
100
305
644
23,966
167
24,777
232
(3)
Automobile
132
33
18
183
15,985
—
16,168
14
Home equity
60
30
89
179
10,216
—
10,395
16
RV and marine
25
10
5
40
5,642
—
5,682
4
Other consumer
18
6
7
31
2,211
—
2,242
6
Total loans and leases
$679
$291
$867
$1,837
$147,638
$167
$149,642
$282
(1)NALs are included in this aging analysis based on the loan’s past due status.
(2)Amounts include SBA loans and leases.
(3)Amounts include mortgage loans insured by U.S. government agencies.
Credit Quality Indicators
Huntington assesses the risk in the loan portfolio by utilizing numerous risk characteristics. See Note 5 - “Loans
and Leases” to the Consolidated Financial Statements appearing in Huntington’s 2025 Annual Report on Form 10-K
for a description of the credit quality indicators Huntington utilizes for monitoring credit quality and for determining
an appropriate ACL level.
60 Huntington Bancshares Incorporated
Table of Contents
The following tables present the amortized cost basis of loans and leases by vintage and internally defined credit
quality indicator.
At June 30, 2026
Term Loans Amortized Cost Basis by Origination Year
Revolver
Total at
Amortized
Cost Basis
Revolver
Total
Converted to
Term Loans
(dollar amounts in millions)
2026
2025
2024
2023
2022
Prior
Total
Commercial and industrial
Credit Quality Indicator:
Pass
$14,429
$17,461
$9,093
$5,246
$4,815
$5,585
$30,359
$12
$87,000
OLEM
120
207
142
86
69
66
303
—
993
Substandard
395
481
606
434
332
381
756
—
3,385
Total Commercial and industrial
$14,944
$18,149
$9,841
$5,766
$5,216
$6,032
$31,418
$12
$91,378
Commercial real estate
Credit Quality Indicator:
Pass
$2,516
$5,939
$2,859
$1,296
$2,834
$4,317
$1,242
$—
$21,003
OLEM
189
177
60
39
279
178
1
—
923
Substandard
290
268
113
141
358
356
5
—
1,531
Total Commercial real estate
$2,995
$6,384
$3,032
$1,476
$3,471
$4,851
$1,248
$—
$23,457
Lease financing
Credit Quality Indicator:
Pass
$805
$1,900
$1,398
$940
$266
$369
$—
$—
$5,678
OLEM
—
—
2
—
—
—
—
—
2
Substandard
—
2
6
7
5
14
—
—
34
Total Lease financing
$805
$1,902
$1,406
$947
$271
$383
$—
$—
$5,714
Residential mortgage
Credit Quality Indicator:
750+
$1,499
$2,818
$2,350
$2,518
$4,291
$11,405
$21
$—
$24,902
650-749
580
1,007
759
669
1,147
2,609
—
—
6,771
<650
31
110
124
110
178
831
—
—
1,384
Total Residential mortgage
$2,110
$3,935
$3,233
$3,297
$5,616
$14,845
$21
$—
$33,057
Automobile
Credit Quality Indicator:
750+
$1,689
$3,175
$2,156
$781
$522
$283
$—
$—
$8,606
650-749
1,020
2,355
1,185
395
251
137
—
—
5,343
<650
134
581
379
180
137
100
—
—
1,511
Total Automobile
$2,843
$6,111
$3,720
$1,356
$910
$520
$—
$—
$15,460
Home equity
Credit Quality Indicator:
750+
$78
$195
$159
$236
$321
$867
$5,838
$234
$7,928
650-749
24
49
45
61
52
138
2,655
209
3,233
<650
—
2
8
14
12
44
498
145
723
Total Home equity
$102
$246
$212
$311
$385
$1,049
$8,991
$588
$11,884
RV and marine
Credit Quality Indicator:
750+
$547
$609
$632
$620
$603
$1,320
$—
$—
$4,331
650-749
120
166
173
191
152
378
—
—
1,180
<650
1
8
22
33
29
102
—
—
195
Total RV and marine
$668
$783
$827
$844
$784
$1,800
$—
$—
$5,706
Other consumer
Credit Quality Indicator:
750+
$249
$303
$149
$46
$22
$62
$676
$2
$1,509
650-749
103
159
74
25
8
15
539
10
933
<650
6
23
17
8
5
6
78
17
160
Total Other consumer
$358
$485
$240
$79
$35
$83
$1,293
$29
$2,602
2026 2Q Form 10-Q 61
Table of Contents
At December 31, 2025
Term Loans Amortized Cost Basis by Origination Year
Revolver
Total at
Amortized
Cost Basis
Revolver
Total
Converted to
Term Loans
(dollar amounts in millions)
2025
2024
2023
2022
2021
Prior
Total
Commercial and industrial
Credit Quality Indicator:
Pass
$19,465
$8,750
$4,561
$4,189
$1,601
$2,181
$25,228
$7
$65,982
OLEM
222
226
92
106
14
17
272
—
949
Substandard
513
406
326
285
137
127
717
—
2,511
Total Commercial and industrial
$20,200
$9,382
$4,979
$4,580
$1,752
$2,325
$26,217
$7
$69,442
Commercial real estate
Credit Quality Indicator:
Pass
$3,257
$1,813
$761
$2,491
$1,358
$2,429
$876
$—
$12,985
OLEM
58
47
89
398
275
108
—
—
975
Substandard
178
87
125
366
197
289
7
—
1,249
Total Commercial real estate
$3,493
$1,947
$975
$3,255
$1,830
$2,826
$883
$—
$15,209
Lease financing
Credit Quality Indicator:
Pass
$1,854
$1,506
$1,091
$547
$356
$303
$—
$—
$5,657
OLEM
—
7
10
2
3
9
—
—
31
Substandard
3
6
11
13
2
4
—
—
39
Total Lease financing
$1,857
$1,519
$1,112
$562
$361
$316
$—
$—
$5,727
Residential mortgage
Credit Quality Indicator:
750+
$1,515
$1,785
$2,028
$3,755
$5,331
$5,006
$—
$—
$19,420
650-749
638
441
397
638
727
1,076
—
—
3,917
<650
88
113
100
165
155
652
—
—
1,273
Total Residential mortgage
$2,241
$2,339
$2,525
$4,558
$6,213
$6,734
$—
$—
$24,610
Automobile
Credit Quality Indicator:
750+
$4,019
$2,692
$1,036
$754
$424
$107
$—
$—
$9,032
650-749
2,879
1,576
544
369
199
53
—
—
5,620
<650
523
428
217
184
123
41
—
—
1,516
Total Automobile
$7,421
$4,696
$1,797
$1,307
$746
$201
$—
$—
$16,168
Home equity
Credit Quality Indicator:
750+
$185
$164
$249
$321
$376
$542
$4,909
$228
$6,974
650-749
56
51
72
62
43
102
2,100
217
2,703
<650
3
8
14
29
7
41
474
142
718
Total Home equity
$244
$223
$335
$412
$426
$685
$7,483
$587
$10,395
RV and marine
Credit Quality Indicator:
750+
$709
$716
$709
$676
$586
$914
$—
$—
$4,310
650-749
172
204
209
164
164
264
—
—
1,177
<650
5
19
32
29
37
73
—
—
195
Total RV and marine
$886
$939
$950
$869
$787
$1,251
$—
$—
$5,682
Other consumer
Credit Quality Indicator:
750+
$388
$176
$52
$25
$11
$45
$619
$9
$1,325
650-749
172
87
29
9
3
10
485
4
799
<650
14
15
8
4
1
2
66
8
118
Total Other consumer
$574
$278
$89
$38
$15
$57
$1,170
$21
$2,242
62 Huntington Bancshares Incorporated
Table of Contents
The following tables present the gross charge-offs of loans and leases by vintage.
Term Loans Gross Charge-offs by Origination Year
Revolver
Gross
Charge-offs
Revolver
Converted
to Term
Loans
Gross
Charge-offs
(dollar amounts in millions)
2026
2025
2024
2023
2022
Prior
Total
Three months ended June 30, 2026
Commercial and industrial
$3
$6
$7
$10
$9
$36
$37
$1
$109
Commercial real estate
—
—
—
1
3
1
1
—
6
Lease financing
—
—
—
—
1
—
—
—
1
Residential mortgage
—
1
1
—
1
—
—
—
3
Automobile
—
10
6
3
2
1
—
—
22
Home equity
—
—
—
—
—
—
1
2
3
RV and marine
—
1
1
2
2
4
—
—
10
Other consumer
5
8
4
2
2
4
—
12
37
Total
$8
$26
$19
$18
$20
$46
$39
$15
$191
Six months ended June 30, 2026
Commercial and industrial
$4
$18
$13
$17
$11
$85
$52
$1
$201
Commercial real estate
—
—
—
1
4
5
1
—
11
Lease financing
—
—
—
—
1
1
—
—
2
Residential mortgage
—
1
1
—
1
1
—
—
4
Automobile
—
19
12
7
5
4
—
—
47
Home equity
—
—
—
—
—
—
1
3
4
RV and marine
—
1
2
4
3
9
—
—
19
Other consumer
6
17
10
5
3
8
2
25
76
Total
$10
$56
$38
$34
$28
$113
$56
$29
$364
Term Loans Gross Charge-offs by Origination Year
Revolver
Gross
Charge-offs
Revolver
Converted
to Term
Loans Gross
Charge-offs
(dollar amounts in millions)
2025
2024
2023
2022
2021
Prior
Total
Three months ended June 30, 2025
Commercial and industrial
$2
$5
$16
$10
$2
$4
$9
$1
$49
Commercial real estate
2
—
—
—
—
—
1
—
3
Lease financing
—
—
—
1
1
2
—
—
4
Residential mortgage
—
—
—
—
—
1
—
—
1
Automobile
—
5
4
3
3
1
—
—
16
Home equity
—
—
—
—
—
—
—
1
1
RV and marine
—
1
2
2
1
3
—
—
9
Other consumer
3
5
4
2
1
3
—
10
28
Total
$7
$16
$26
$18
$8
$14
$10
$12
$111
Six months ended June 30, 2025
Commercial and industrial
$2
$11
$24
$43
$5
$13
$18
$2
$118
Commercial real estate
2
—
—
—
1
—
1
—
4
Lease financing
—
1
1
3
1
2
—
—
8
Residential mortgage
—
—
—
—
—
2
—
—
2
Automobile
—
10
9
9
6
2
—
—
36
Home equity
—
—
—
—
—
—
1
2
3
RV and marine
—
1
4
3
3
7
—
—
18
Other consumer
4
11
9
4
2
6
—
19
55
Total
$8
$34
$47
$62
$18
$32
$20
$23
$244
2026 2Q Form 10-Q 63
Table of Contents
Modifications to Debtors Experiencing Financial Difficulty
See Note 5 - “Loans and Leases” to the Consolidated Financial Statements appearing in Huntington’s 2025
Annual Report on Form 10-K for a description of reported modification types and the impact on credit quality of
borrowers experiencing financial difficulty.
The following table summarizes the amortized cost basis of loans modified during the reporting period to
borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of modification.
Amortized Cost
(dollar amounts in millions)
Interest rate
reduction
Term
extension
Payment
deferral
Combo - interest
rate reduction and
term extension
Total
% of total
loan class
(1)
Three months ended June 30, 2026
Commercial and industrial
$42
$152
$—
$35
$229
0.25%
Commercial real estate
6
259
—
2
267
1.14
Residential mortgage
—
19
4
3
26
0.08
Automobile
—
4
—
—
4
0.03
Home equity
—
2
—
2
4
0.03
Other consumer
1
—
—
—
1
0.04
Total loans to borrowers experiencing financial
difficulty to which modifications were made
$49
$436
$4
$42
$531
0.28%
Three months ended June 30, 2025
Commercial and industrial
$44
$158
$—
$1
$203
0.33%
Commercial real estate
—
69
—
—
69
0.64
Residential mortgage
—
12
3
2
17
0.07
Automobile
—
1
—
—
1
0.01
Home equity
—
2
—
2
4
0.04
Total loans to borrowers experiencing financial
difficulty to which modifications were made
$44
$242
$3
$5
$294
0.22%
Six months ended June 30, 2026
Commercial and industrial
$67
$212
$—
$90
$369
0.40%
Commercial real estate
6
299
—
2
307
1.31
Residential mortgage
—
23
5
3
31
0.09
Automobile
—
7
—
1
8
0.05
Home equity
—
4
—
3
7
0.06
Other consumer
1
—
—
—
1
0.04
Total loans to borrowers experiencing financial
difficulty in which modifications were made
$74
$545
$5
$99
$723
0.38%
Six months ended June 30, 2025
Commercial and industrial
$91
$289
$—
$5
$385
0.63%
Commercial real estate
—
140
—
—
140
1.31
Residential mortgage
—
24
11
3
38
0.15
Automobile
—
3
—
—
3
0.02
Home equity
—
4
—
4
8
0.08
Other consumer
1
—
—
—
1
0.05
Total loans to borrowers experiencing financial
difficulty in which modifications were made
$92
$460
$11
$12
$575
0.43%
(1)Represents the amortized cost of loans modified during the reporting period as a percentage of the period-end loan balance by class.
64 Huntington Bancshares Incorporated
Table of Contents
The following table summarizes the weighted-average financial effects of loan modifications made to borrowers
experiencing financial difficulty.
Interest Rate Reduction (1)
Term Extension (1)
Weighted-average contractual
interest rate
Weighted-average
years added to the
life
From
To
Three months ended June 30, 2026
Commercial and industrial
8.06%
7.00%
0.8
Commercial real estate
0.9
Residential mortgage
7.1
Three months ended June 30, 2025
Commercial and industrial
8.80%
6.38%
0.6
Commercial real estate
0.8
Residential mortgage
7.1
Six months ended June 30, 2026
Commercial and industrial
9.31%
7.14%
0.9
Commercial real estate
0.9
Residential mortgage
7.2
Six months ended June 30, 2025
Commercial and industrial
8.32%
7.00%
0.9
Commercial real estate
1.0
Residential mortgage
6.5
(1) Certain disclosures related to financial effects of modifications do not include those deemed to be immaterial.
2026 2Q Form 10-Q 65
Table of Contents
The performance of loans made to borrowers experiencing financial difficulty to which modifications were made
is closely monitored to understand the effectiveness of modification efforts. Loans are considered to be in payment
default at 90 or more days past due. The following table depicts the performance of loans that have been modified
during the identified period.
Past Due
(dollar amounts in millions)
30-59
Days
60-89
Days
90 or
more days
Total
Current
Total
At June 30, 2026
Commercial and industrial
$8
$39
$15
$62
$394
$456
Commercial real estate
7
2
34
43
319
362
Residential mortgage
7
5
10
22
25
47
Automobile
2
—
—
2
11
13
Home equity
1
1
3
5
10
15
RV and marine
—
—
—
—
1
1
Other consumer
—
—
—
—
1
1
Total loans to borrowers experiencing financial difficulty to
which modifications were made in the twelve months ended
June 30, 2026
$25
$47
$62
$134
$761
$895
At June 30, 2025
Commercial and industrial
$2
$1
$5
$8
$534
$542
Commercial real estate
—
—
23
23
211
234
Residential mortgage
11
6
17
34
35
69
Automobile
1
—
—
1
7
8
Home equity
1
1
1
3
12
15
RV and marine
—
—
—
—
1
1
Other consumer
—
—
—
—
2
2
Total loans to borrowers experiencing financial difficulty to
which modifications were made in the twelve months ended
June 30, 2025
$15
$8
$46
$69
$802
$871
Pledged Loans
The Bank has access to secured borrowings from the Federal Reserve’s discount window and advances from the
FHLB. As of June 30, 2026 and December 31, 2025, loans and leases totaling $143.9 billion and $114.2 billion,
respectively, were pledged to the FRB and FHLB for access to these contingent funding sources.
66 Huntington Bancshares Incorporated
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6. ALLOWANCE FOR CREDIT LOSSES
The following table presents ACL activity by portfolio segment.
(dollar amounts in millions)
Commercial
Consumer
Total
Three months ended June 30, 2026
ALLL balance, beginning of period
$2,305
$938
$3,243
Loan and lease charge-offs
(116)
(75)
(191)
Recoveries of loans and leases previously charged-off
50
22
72
Provision for loan and lease losses
100
25
125
ALLL balance, end of period
$2,339
$910
$3,249
AULC balance, beginning of period
$98
$27
$125
Provision (benefit) for unfunded lending commitments
4
3
7
AULC balance, end of period
$102
$30
$132
ACL balance, end of period
$2,441
$940
$3,381
Three months ended June 30, 2025
ALLL balance, beginning of period
$1,520
$743
$2,263
Loan and lease charge-offs
(56)
(55)
(111)
Recoveries of loans and leases previously charged-off
25
20
45
Provision for loan and lease losses
59
75
134
ALLL balance, end of period
$1,548
$783
$2,331
AULC balance, beginning of period
$158
$57
$215
Provision (benefit) for unfunded lending commitments
(34)
3
(31)
AULC balance, end of period
$124
$60
$184
ACL balance, end of period
$1,672
$843
$2,515
Six months ended June 30, 2026
ALLL balance, beginning of period
$1,731
$806
$2,537
Loan and lease charge-offs (1)
(214)
(150)
(364)
Recoveries of loans and leases previously charged-off
92
42
134
Provision for loan and lease losses
292
83
375
Allowance on PCD loans and leases at acquisition
268
54
322
Allowance on purchased seasoned loans and leases at acquisition
170
75
245
ALLL balance, end of period
$2,339
$910
$3,249
AULC balance, beginning of period
$145
$61
$206
Provision (benefit) for unfunded lending commitments
(46)
(39)
(85)
Allowance for unfunded lending commitments at acquisition
3
8
11
AULC balance, end of period
$102
$30
$132
ACL balance, end of period
$2,441
$940
$3,381
Six months ended June 30, 2025
ALLL balance, beginning of period
$1,484
$760
$2,244
Loan and lease charge-offs
(130)
(114)
(244)
Recoveries of loans and leases previously charged-off
55
37
92
Provision for loan and lease losses
139
100
239
ALLL balance, end of period
$1,548
$783
$2,331
AULC balance, beginning of period
$144
$58
$202
Provision (benefit) for unfunded lending commitments
(20)
2
(18)
AULC balance, end of period
$124
$60
$184
ACL balance, end of period
$1,672
$843
$2,515
(1)Includes charge-offs of $23 million on certain commercial loans previously charged off by Cadence, which were written up to the unpaid principal balance
at acquisition and then immediately charged off by Huntington as required by purchase accounting.
2026 2Q Form 10-Q 67
Table of Contents
At June 30, 2026, the ACL was $3.4 billion, a $638 million increase compared to December 31, 2025. The
increase in the ACL was driven by the ACL recorded for loans acquired in the Cadence transaction in addition to
organic loan and lease growth. The ACL coverage ratio at June 30, 2026 is reflective of the current macroeconomic
forecast and changes in various risk profiles intended to capture uncertainty not addressed within the quantitative
reserve.
The commercial ACL was $2.4 billion at June 30, 2026, a $565 million increase compared to December 31, 2025,
with the increase driven by $438 million of ALLL recorded for commercial loans acquired in the Cadence transaction,
as well as organic growth in commercial loans and leases during the first six months of 2026. The consumer ACL was
$940 million at June 30, 2026, an increase of $73 million from December 31, 2025, with the increase due primarily to
$129 million of ALLL recorded for consumer loans acquired in the Cadence transaction.
For purposes of determining the ACL at June 30, 2026, we utilized a baseline economic scenario that assumes
the labor market has softened, with the unemployment rate peaking at 4.6% in the fourth quarter of 2026 and
expected to remain elevated at 4.6% in the first half of 2027. The Federal Reserve projected to continue the current
cycle of rate cuts, but cuts are expected later in 2026 and 2027, with the federal funds rate projected to return to 3%
by 2028. Inflation is forecasted to remain above the Federal Reserve’s target level of 2%, with inflation still at or near
3% by the end of 2026. Forecasted GDP growth moderated in the first quarter, with growth projected at
approximately 2.2% in 2026 before easing below 2% in 2027.
The economic scenarios used included elevated levels of economic uncertainty including the impact of specific
challenges in the commercial real estate industry, recent inflation levels, the U.S. labor market, the expected path of
interest rate changes by the Federal Reserve, and the impact of significant conflicts on-going around the world.
Given the uncertainty associated with key economic scenario assumptions, the June 30, 2026 ACL included a general
reserve that consists of various risk profile components to address uncertainty not measured within the quantitative
transaction reserve.
7. MORTGAGE LOAN SALES AND SERVICING RIGHTS
Residential Mortgage Portfolio
The following table summarizes activity relating to residential mortgage loans sold with servicing retained.
Three Months Ended
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Residential mortgage loans sold with servicing retained
$2,045
$1,168
$3,354
$2,177
Pretax gains resulting from above loan sales (1)
49
23
77
42
Total servicing, late, and other ancillary fees (1)
34
26
67
53
(1)Included in mortgage banking income.
The following table summarizes the changes in MSRs recorded using the fair value method.
Three Months Ended
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Fair value, beginning of period
$735
$564
$593
$573
Servicing assets obtained in acquisition
—
`
`
—
140
—
New servicing assets created
40
20
68
40
Change in fair value during the period due to:
Time decay (1)
(9)
(7)
(16)
(14)
Payoffs (2)
(15)
(10)
(29)
(17)
Changes in valuation inputs or assumptions (3)
1
—
(4)
(15)
Fair value, end of period
$752
$567
$752
$567
Related loans serviced for third parties, unpaid principal balance,
end of period
$43,419
$33,925
$43,419
$33,925
(1)Represents decrease in value due to passage of time, including the impact from both regularly scheduled principal payments and partial loan paydowns.
(2)Represents decrease in value associated with loans that paid off during the period.
(3)Represents change in value resulting primarily from market-driven changes in interest rates.
68 Huntington Bancshares Incorporated
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The following table summarizes key assumptions and the sensitivity of the MSR value to changes in these
assumptions.
At June 30, 2026
At December 31, 2025
Decline in fair value due to
Decline in fair value due to
(dollar amounts in millions)
Actual
10%
adverse
change
20%
adverse
change
Actual
10%
adverse
change
20%
adverse
change
Constant prepayment rate (annualized)
8.16%
$(21)
$(40)
8.09%
$(17)
$(33)
Spread over forward interest rate swap rates
544
bps
(17)
(34)
538
bps
(14)
(27)
8. GOODWILL AND OTHER INTANGIBLE ASSETS
In conjunction with the Cadence acquisition, Huntington recorded $3.5 billion of goodwill and $855 million of
core deposit intangible assets, which is included in servicing rights and other intangible assets on the Unaudited
Consolidated Balance Sheets. For additional information on the Cadence acquisition, see Note 3 - “Business
Combinations” of the Notes to Unaudited Consolidated Financial Statements.
A rollforward of goodwill by business segment for which goodwill is allocated is presented in the table below.
(dollar amounts in millions)
Consumer &
Regional Banking
Commercial
Banking
Huntington
Consolidated
Balance, December 31, 2025
$3,855
$2,142
$5,997
Cadence acquisition (1)
2,597
900
3,497
Other activity
—
33
33
Balance, June 30, 2026
$6,452
$3,075
$9,527
(1) On February 1, 2026, Huntington completed the acquisition of Cadence. Fair value estimates related to the acquired assets and liabilities are subject to
adjustment during the one-year measurement period following the closing of the acquisition.
Huntington’s other intangible assets consisted of the following:
(dollar amounts in millions)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Value
At June 30, 2026
Core deposit intangible
$1,328
$(427)
$901
Other intangible assets
76
(62)
14
Total other intangible assets
$1,404
$(489)
$915
At December 31, 2025
Core deposit intangible
$473
$(335)
$138
Other intangible assets
66
(59)
7
Total other intangible assets
$539
$(394)
$145
9. BORROWINGS
Borrowings with original maturities of one year or less are classified as short-term and were comprised of the
following.
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
Securities sold under agreements to repurchase
$—
$22
FHLB advances
2,700
1,000
Other borrowings
411
239
Total short-term borrowings
$3,111
$1,261
The carrying value of assets pledged as collateral against repurchase agreements totaled $40 million as of
December 31, 2025. There were no assets pledged as collateral against repurchase agreements as of June 30, 2026.
Assets pledged as collateral are reported in available-for-sale securities and held-to-maturity securities on the
Unaudited Consolidated Balance Sheets. The repurchase agreements have maturities within 60 days. No amounts
have been offset against the agreements.
2026 2Q Form 10-Q 69
Table of Contents
The following table summarizes the composition of Huntington’s long-term debt.
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
The Parent Company:
Senior Notes
$6,407
$5,514
Subordinated Notes
2,085
1,510
Total notes issued by the Parent Company
8,492
7,024
The Bank:
Senior Notes
3,174
3,192
Subordinated Notes
236
233
Total notes issued by the Bank
3,410
3,425
FHLB Advances
4,653
4,514
Credit linked notes (1)
1,250
1,161
Auto loan securitization trust (2)
428
600
Other
505
497
Total long-term debt
$18,738
$17,221
(1)As of June 30, 2026, the weighted average contractual interest rate on the CLNs was 5.53%. Huntington has elected the fair value option for these notes.
To the extent losses exceed certain thresholds, the principal and interest payable on the notes may be reduced by a portion of the Company's aggregate
net losses on the reference pool of loans, with losses allocated to note classes in reverse order of payment priority.
(2)Represents secured borrowings collateralized by auto loans with a weighted average rate of 5.21% due through 2029. See Note 16 - “Variable Interest
Entities” for additional information.
During the first quarter of 2026, Huntington issued $1.0 billion of fixed-to-floating rate senior and $750 million
of fixed-rate subordinated notes. The fixed-to-floating senior notes are due January 28, 2032 and bear an initial fixed
interest rate of 4.623%. Commencing January 28, 2031, the interest rate will reset to a floating rate equal to a
benchmark rate based on the Compounded SOFR Index Rate plus 99 basis points. The fixed-rate subordinated notes
are due January 28, 2041 and bear interest at 5.605%.
During the first quarter of 2026, the Bank completed a CLN transaction whereby it issued $410 million of
unsecured credit linked notes to third-party investors. There are four classes of notes, each maturing in February
2034. One note class bears interest at a fixed rate of 4.550% and the remaining three note classes bear interest at a
floating rate equal to SOFR plus a spread rate that ranges from 1.00% to 8.65% (weighted average spread of 4.15%).
These notes transfer a portion of the risk of losses to third-party investors on an initial $3.5 billion reference pool of
Huntington’s auto-secured loans.
70 Huntington Bancshares Incorporated
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10. OTHER COMPREHENSIVE INCOME
The following table summarizes the components of Huntington’s OCI.
(dollar amounts in millions)
Pretax
Tax (expense)
benefit
After-tax
Three months ended June 30, 2026
Unrealized losses on available-for-sale securities arising during the period, net of hedges
$(51)
$13
$(38)
Reclassification adjustment for realized net losses included in net income
3
(1)
2
Total unrealized losses on available-for-sale securities, net of hedges
(48)
12
(36)
Unrealized losses on cash flow hedges during the period
(158)
37
(121)
Reclassification adjustment for cash flow hedges included in net income
4
(1)
3
Net change related to cash flow hedges on loans
(154)
36
(118)
Translation adjustments, net of hedges (1)
(2)
1
(1)
Change in accumulated unrealized gains for pension and other post-retirement obligations
2
(1)
1
Other comprehensive loss
$(202)
$48
$(154)
Three months ended June 30, 2025
Unrealized gains on available-for-sale securities during the period, net of hedges
$65
$(17)
$48
Reclassification adjustment for realized net losses included in net income
65
(16)
49
Total unrealized gains on available-for-sale securities, net of hedges
130
(33)
97
Unrealized gains on cash flow hedges during the period
99
(24)
75
Reclassification adjustment for cash flow hedges included in net income
11
(3)
8
Net change related to cash flow hedges on loans
110
(27)
83
Translation adjustments, net of hedges (1)
8
(2)
6
Change in accumulated unrealized gains for pension and other post-retirement obligations
1
—
1
Other comprehensive income
$249
$(62)
$187
Six months ended June 30, 2026
Unrealized losses on available-for-sale securities arising during the period, net of hedges
$(125)
$30
$(95)
Reclassification adjustment for realized net gains included in net income
(22)
5
(17)
Total unrealized losses on available-for-sale securities, net of hedges
(147)
35
(112)
Unrealized losses on cash flow hedges during the period
(264)
62
(202)
Reclassification adjustment for cash flow hedges included in net income
10
(2)
8
Net change related to cash flow hedges on loans
(254)
60
(194)
Translation adjustments, net of hedges (1)
(3)
2
(1)
Change in accumulated unrealized gains for pension and other post-retirement obligations
4
(2)
2
Other comprehensive loss
$(400)
$95
$(305)
Six months ended June 30, 2025
Unrealized gains on available-for-sale securities arising during the period, net of hedges
$394
$(93)
$301
Reclassification adjustment for realized net losses included in net income
67
(16)
51
Total unrealized gains on available-for-sale securities, net of hedges
461
(109)
352
Unrealized gains on cash flow hedges during the period
301
(71)
230
Reclassification adjustment for cash flow hedges included in net income
39
(9)
30
Net change related to cash flow hedges on loans
340
(80)
260
Translation adjustments, net of hedges (1)
9
(2)
7
Change in accumulated unrealized gains for pension and other post-retirement obligations
1
—
1
Other comprehensive income
$811
$(191)
$620
(1)A portion of foreign investments are deemed to be permanent in nature and, therefore, Huntington does not provide for taxes on this portion of foreign
currency translation adjustments.
2026 2Q Form 10-Q 71
Table of Contents
The following table summarizes the activity in AOCI.
(dollar amounts in millions)
Unrealized gains
(losses) on
available-for-sale
securities, net of
hedges (1)
Net change
related to cash
flow hedges on
loans
Translation
adjustments,
net of hedges
Unrealized
losses for
pension and
other post-
retirement
obligations
Total
Three months ended June 30, 2026
Balance, beginning of period
$(1,814)
$(49)
$(4)
$(192)
$(2,059)
Other comprehensive (loss) income before
reclassifications
(38)
(121)
(1)
1
(159)
Amounts reclassified from AOCI to earnings
2
3
—
—
5
Period change
(36)
(118)
(1)
1
(154)
Balance, end of period
$(1,850)
$(167)
$(5)
$(191)
$(2,213)
Three months ended June 30, 2025
Balance, beginning of period
$(2,110)
$(90)
$(11)
$(222)
$(2,433)
Other comprehensive income before reclassifications
48
75
6
1
130
Amounts reclassified from AOCI to earnings
49
8
—
—
57
Period change
97
83
6
1
187
Balance, end of period
$(2,013)
$(7)
$(5)
$(221)
$(2,246)
Six months ended June 30, 2026
Balance, beginning of period
$(1,738)
$27
$(4)
$(193)
$(1,908)
Other comprehensive (loss) income before
reclassifications
(95)
(202)
(1)
2
(296)
Amounts reclassified from AOCI to earnings
(17)
8
—
—
(9)
Period change
(112)
(194)
(1)
2
(305)
Balance, end of period
$(1,850)
$(167)
$(5)
$(191)
$(2,213)
Six months ended June 30, 2025
Balance, beginning of period
$(2,365)
$(267)
$(12)
$(222)
$(2,866)
Other comprehensive income before reclassifications
301
230
7
1
539
Amounts reclassified from AOCI to earnings
51
30
—
—
81
Period change
352
260
7
1
620
Balance, end of period
$(2,013)
$(7)
$(5)
$(221)
$(2,246)
(1)AOCI amounts at June 30, 2026 and June 30, 2025 include $41 million and $47 million, respectively, of net unrealized losses (after-tax) on securities
previously transferred from the AFS securities portfolio to the HTM securities portfolio. The net unrealized losses will be recognized in earnings over the
remaining life of the security using the effective interest method.
72 Huntington Bancshares Incorporated
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11. SHAREHOLDERS' EQUITY
Preferred Stock
The following is a summary of Huntington’s non-cumulative, non-voting, perpetual preferred stock outstanding.
(dollar amounts in millions)
Issuance Date
Shares
Outstanding
Dividend Rate
Earliest Redemption
Date (1)
Carrying Amount
Preferred Series
At June 30, 2026
At December 31, 2025
Series B (2)
12/28/2011
35,500
Variable (3)
1/15/2017
$24
$24
Series F (4)
5/27/2020
5,000
5.625%
7/15/2030
494
494
Series G (4)
8/3/2020
5,000
4.45
10/15/2027
494
494
Series H (2)
2/2/2021
500,000
4.50
4/15/2026
486
486
Series I (5)
6/9/2021
7,000
5.70
12/01/2022
175
175
Series J (2)
3/6/2023
325,000
6.875
4/15/2028
317
317
Series K (4)
9/11/2025
7,500
6.25
10/15/2030
741
741
Series L (5)
2/1/2026
6,900
5.50
(6)
150
—
Total
891,900
$2,881
$2,731
(1) Redeemable at Huntington’s option on the date stated or on a quarterly basis thereafter.
(2)Liquidation value and redemption price per share of $1,000, plus any declared and unpaid dividends.
(3)3-month CME Term SOFR + 26 bps spread adjustment + 270 bps.
(4) Liquidation value and redemption price per share of $100,000, plus any declared and unpaid dividends.
(5) Liquidation value and redemption price per share of $25,000, plus any declared and unpaid dividends.
(6)Redeemable on any dividend payment date.
The following table presents the dividends declared for each series of preferred stock.
Three Months Ended
Six Months Ended
(amounts in millions, except per share
data)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Cash
Dividend
Declared
Per Share
Cash
Dividend
Declared
Per Share
Cash
Dividend
Declared
Per Share
Cash
Dividend
Declared
Per Share
Preferred Series
Amount
Amount
Amount
Amount ($)
Series B
$16.59
$1
$18.04
$1
$33.17
$2
$36.20
$2
Series F
1,406.25
7
1,406.25
8
2,812.50
14
2,812.50
14
Series G
1,112.50
6
1,112.50
5
2,225.00
12
2,225.00
11
Series H
11.25
6
11.25
5
22.50
12
22.50
11
Series I
356.25
2
356.25
3
712.50
4
712.50
5
Series J
17.19
6
17.19
5
34.38
12
34.38
11
Series K (1)
1,562.50
11
3,125.00
22
Series L (2)
343.75
2
687.50
4
Total
$41
$27
$82
$54
(1) Series K was issued during the third quarter of 2025, with the first dividend declaration for the Series K occurring in the fourth quarter of 2025.
(2)Series L was issued during the first quarter of 2026, with the first dividend declaration for the Series L occurring in the first quarter of 2026.
2026 2Q Form 10-Q 73
Table of Contents
12. EARNINGS PER SHARE
Basic earnings per share is the amount of earnings (adjusted for preferred stock dividends and the impact of
preferred stock repurchases and redemptions) available to each share of common stock outstanding during the
reporting period. Diluted earnings per share is the amount of earnings available to each share of common stock
outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares.
Potentially dilutive common shares include incremental shares issued for stock options, restricted stock units and
awards, performance share units, and shares held in deferred compensation plans. Potentially dilutive common
shares are excluded from the computation of diluted earnings per share in periods in which the effect would be
antidilutive.
The following table shows the calculation of basic and diluted earnings per share.
Three Months Ended
Six Months Ended
(dollar amounts in millions, except per share data, share count in thousands)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Basic earnings per common share:
Net income attributable to Huntington
$727
$536
$1,250
$1,063
Dividends on preferred shares
41
27
82
54
Net income available to common shareholders
$686
$509
$1,168
$1,009
Average common shares issued and outstanding
2,021,373
1,457,309
1,945,805
1,455,904
Basic earnings per common share
$0.34
$0.35
$0.60
$0.69
Diluted earnings per common share:
Average dilutive potential common shares:
Stock options, restricted stock units and awards, and
performance share units
19,719
16,587
21,956
18,567
Shares held in deferred compensation plans
7,219
7,100
7,191
7,070
Average dilutive potential common shares
26,938
23,687
29,147
25,637
Total diluted average common shares issued and outstanding
2,048,311
1,480,996
1,974,952
1,481,541
Diluted earnings per common share
$0.33
$0.34
$0.59
$0.68
Anti-dilutive awards (1)
874
7,135
1,099
4,750
(1)Reflects the total number of shares related to outstanding options that have been excluded from the computation of diluted earnings per share because
the impact would have been anti-dilutive.
74 Huntington Bancshares Incorporated
Table of Contents
13. REVENUE FROM CONTRACTS WITH CUSTOMERS
Revenue is segregated based on the nature of the product and services offered as part of contractual
arrangements. Certain sources of revenue are recognized within interest or fee income and are outside of the scope
of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Other sources of revenue fall within the
scope of the ASC 606 and are generally recognized within noninterest income. The following table presents total
noninterest income disaggregated by operating segment and segregated between revenue with contracts with
customers within the scope of ASC 606 and revenue within the scope of other GAAP topics.
(dollar amounts in millions)
Consumer &
Regional Banking
Commercial
Banking
Treasury / Other
Huntington
Consolidated
Major Revenue Streams
Three months ended June 30, 2026
Payments and cash management revenue
$134
$59
$—
$193
Wealth and asset management revenue
128
6
—
134
Customer deposit and loan fees
72
5
—
77
Capital markets and advisory fees
7
65
—
72
Leasing revenue
2
(1)
—
1
Insurance income
17
3
1
21
Other noninterest income
2
(1)
3
4
Net revenue from contracts with customers
362
136
4
502
Noninterest income within the scope of other GAAP topics
95
139
49
283
Total noninterest income
$457
$275
$53
$785
Three months ended June 30, 2025
Payments and cash management revenue
$117
$33
$—
$150
Wealth and asset management revenue
98
4
—
102
Customer deposit and loan fees
58
4
—
62
Capital markets and advisory fees
2
39
—
41
Leasing revenue
—
3
—
3
Insurance income
19
—
—
19
Other noninterest income
1
1
(2)
—
Net revenue from contracts with customers
295
84
(2)
377
Noninterest income within the scope of other GAAP topics
44
93
(43)
94
Total noninterest income
$339
$177
$(45)
$471
2026 2Q Form 10-Q 75
Table of Contents
(dollar amounts in millions)
Consumer &
Regional Banking
Commercial
Banking
Treasury / Other
Huntington
Consolidated
Major Revenue Streams
Six Months Ended June 30, 2026
Payments and cash management revenue
$254
$116
$—
$370
Wealth and asset management revenue
242
12
—
254
Customer deposit and loan fees
138
9
—
147
Capital markets and advisory fees
14
132
—
146
Leasing revenue
4
—
—
4
Insurance income
35
6
1
42
Other noninterest income
4
4
3
11
Net revenue from contracts with customers
691
279
4
974
Noninterest income within the scope of other GAAP topics
153
248
92
493
Total noninterest income
$844
$527
$96
$1,467
Six Months Ended June 30, 2025
Payments and cash management revenue
$225
$65
$—
$290
Wealth and asset management revenue
193
10
—
203
Customer deposit and loan fees
110
6
—
116
Capital markets and advisory fees
6
65
—
71
Leasing revenue
1
6
—
7
Insurance income
36
3
—
39
Other noninterest income
2
2
(2)
2
Net revenue from contracts with customers
573
157
(2)
728
Noninterest income within the scope of other GAAP topics
93
182
(38)
237
Total noninterest income
$666
$339
$(40)
$965
Huntington generally provides services for customers in which it acts as principal. Payment terms and conditions
vary amongst services and customers and thus impact the timing and amount of revenue recognition. Some fees
may be paid before any service is rendered and accordingly, such fees are deferred until the obligations pertaining to
those fees are satisfied. Most Huntington contracts with customers are cancelable by either party without penalty or
they are short-term in nature, with a contract duration of less than one year. Accordingly, most revenue deferred for
the reporting period ended June 30, 2026 is expected to be earned within one year. Huntington does not have
significant balances of contract assets or contract liabilities, and any change in those balances during the reporting
period ended June 30, 2026 was determined to be immaterial.
2026 2Q Form 10-Q 76
Table of Contents
14. FAIR VALUES OF ASSETS AND LIABILITIES
See Note 19 - “Fair Value of Assets and Liabilities” to the Consolidated Financial Statements appearing in
Huntington’s 2025 Annual Report on Form 10-K for a description of the valuation methodologies used for
instruments measured at fair value. Assets and liabilities measured at fair value rarely transfer between Level 1 and
Level 2 measurements. There were no such transfers during the three-month and six-month periods ended June 30,
2026 and 2025.
Assets and Liabilities measured at fair value on a recurring basis
The following tables present our assets and liabilities measured at fair value on a recurring basis, including
instruments where we have elected the fair value option.
Fair Value Measurements at Reporting Date Using
Netting
Adjustments (1)
Total
(dollar amounts in millions)
Level 1
Level 2
Level 3
At June 30, 2026
Assets
Trading account assets
$10
$316
$—
$—
$326
Available-for-sale securities:
U.S. Treasury
8,777
—
—
—
8,777
Residential MBS
—
11,955
—
—
11,955
Residential CMO
—
6,333
—
—
6,333
Commercial MBS
—
2,567
—
—
2,567
Other agencies
—
474
—
—
474
Municipal securities
—
84
4,565
—
4,649
Corporate debt
—
169
—
—
169
Asset-backed securities
—
136
43
—
179
Private-label CMO
—
73
20
—
93
Other securities/sovereign debt
—
10
—
—
10
Total available-for-sale securities
8,777
21,801
4,628
—
35,206
Other securities
30
43
—
—
73
Loans held for sale
—
1,287
—
—
1,287
Loans held for investment
—
102
62
—
164
MSRs
—
—
752
—
752
Other assets:
Derivative assets
—
547
12
(322)
237
Assets held in trust for deferred compensation plans
236
—
—
—
236
Liabilities
Short-term borrowings
260
70
—
—
330
Long-term debt
—
1,250
—
—
1,250
Derivative liabilities
—
975
3
(238)
740
(1)Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash
collateral held or placed with the same counterparties.
2026 2Q Form 10-Q 77
Table of Contents
Fair Value Measurements at Reporting Date Using
Netting
Adjustments (1)
Total
(dollar amounts in millions)
Level 1
Level 2
Level 3
At December 31, 2025
Assets
Trading account assets
$—
$63
$—
$—
$63
Available-for-sale securities:
U.S. Treasury
4,635
—
—
—
4,635
Residential MBS
—
9,669
—
—
9,669
Residential CMO
—
5,197
—
—
5,197
Commercial MBS
—
1,831
—
—
1,831
Other agencies
—
150
—
—
150
Municipal securities
—
82
4,061
—
4,143
Corporate debt
—
178
—
—
178
Asset-backed securities
—
193
28
—
221
Private-label CMO
—
79
19
—
98
Other securities/sovereign debt
—
10
—
—
10
Total available-for-sale securities
4,635
17,389
4,108
—
26,132
Other securities
30
12
—
—
42
Loans held for sale
—
885
—
—
885
Loans held for investment
—
105
62
—
167
MSRs
—
—
593
—
593
Other assets:
Derivative assets
—
499
8
(260)
247
Assets held in trust for deferred compensation plans
216
—
—
—
216
Liabilities
Short-term borrowings
131
7
—
—
138
Long-term debt
—
1,161
—
—
1,161
Derivative liabilities
—
514
5
(169)
350
(1)Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash
collateral held or placed with the same counterparties.
The following table presents a rollforward of the balance sheet amounts measured at fair value on a recurring
basis and classified as Level 3. The classification of an item as Level 3 is based on the significance of the unobservable
inputs to the overall fair value measurement. However, Level 3 measurements may also include observable
components of value that can be validated externally. Accordingly, the gains and losses in the table below include
changes in fair value due in part to observable factors that are part of the valuation methodology.
2026 2Q Form 10-Q 78
Table of Contents
Level 3 Fair Value Measurements
Available-for-sale securities
Loans held
for
investment
(dollar amounts in millions)
MSRs
Derivative
instruments
Municipal
securities
Private-
label CMO
Asset-backed
securities
Three months ended June 30, 2026
Opening balance
$735
$6
$4,251
$20
$19
$61
Transfers into Level 3
—
—
—
—
—
3
Transfers out of Level 3 (1)
—
(15)
—
—
—
—
Total gains (losses) for the period:
Included in earnings:
Mortgage banking income
1
17
—
—
—
—
Included in OCI
—
—
(6)
—
—
—
Purchases/originations
40
—
663
—
24
—
Repayments
—
—
—
—
—
(2)
Settlements
(24)
1
(343)
—
—
—
Closing balance
$752
$9
$4,565
$20
$43
$62
Change in unrealized gains (losses) for the period
included in earnings for assets held at end of the
reporting date
$1
$3
$—
$—
$—
$—
Change in unrealized gains (losses) for the period
included in other comprehensive income for assets held
at the end of the reporting period
—
—
(8)
—
—
—
Three months ended June 30, 2025
Opening balance
$564
$3
$3,929
$22
$47
$63
Transfers into Level 3
—
—
—
—
—
1
Transfers out of Level 3 (1)
—
(10)
—
—
—
—
Total gains (losses) for the period:
Included in earnings:
Interest and fee income
—
—
(1)
—
—
—
Mortgage banking income
—
12
—
—
—
—
Other noninterest income
—
(1)
—
—
—
—
Included in OCI
—
—
12
—
—
—
Purchases/originations
20
—
421
—
—
—
Repayments
—
—
—
—
—
(2)
Settlements
(17)
3
(294)
(1)
(9)
—
Closing balance
$567
$7
$4,067
$21
$38
$62
Change in unrealized gains (losses) for the period
included in earnings for assets held at end of the
reporting date
$—
$2
$—
$—
$—
$—
Change in unrealized gains (losses) for the period
included in other comprehensive income for assets held
at the end of the reporting period
—
—
10
—
—
—
(1)Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e., interest rate lock agreements) that are transferred to loans held
for sale, which is classified as Level 2.
2026 2Q Form 10-Q 79
Table of Contents
Level 3 Fair Value Measurements
Available-for-sale securities
Loans held
for
investment
(dollar amounts in millions)
MSRs
Derivative
instruments
Municipal
securities
Private-
label CMO
Asset-backed
securities
Six months ended June 30, 2026
Opening balance
$593
$3
$4,061
$19
$28
$62
Transfers into Level 3
—
—
—
—
—
4
Transfers out of Level 3 (1)
—
(28)
—
—
—
—
Total gains (losses) for the period:
Included in earnings:
Mortgage banking income
(4)
30
—
—
—
—
Included in OCI
—
—
(32)
—
—
—
Acquisition
140
1
—
—
—
—
Purchases/originations
68
—
989
—
24
—
Repayments
—
—
—
—
—
(4)
Settlements
(45)
3
(453)
1
(9)
—
Closing balance
$752
$9
$4,565
$20
$43
$62
Change in unrealized gains (losses) for the period included
in earnings for assets held at end of the reporting date
$(4)
$4
$—
$—
$—
$—
Change in unrealized gains (losses) for the period included
in other comprehensive income for assets held at the end
of the reporting period
—
—
(34)
—
—
—
Six months ended June 30, 2025
Opening balance
$573
$2
$3,954
$21
$49
$61
Transfers into Level 3
—
—
—
—
—
4
Transfers out of Level 3 (1)
—
(17)
—
—
—
—
Total gains (losses) for the period:
Included in earnings:
Interest and fee income
—
—
(1)
—
—
—
Mortgage banking income
(15)
22
—
—
—
—
Other noninterest income
—
(6)
—
—
—
—
Included in OCI
—
—
17
—
—
—
Purchases/originations
40
—
639
—
Repayments
—
—
—
—
—
(3)
Settlements
(31)
6
(542)
—
(11)
—
Closing balance
$567
$7
$4,067
$21
$38
$62
Change in unrealized gains (losses) for the period included
in earnings for assets held at end of the reporting date
$(15)
$5
$—
$—
$—
$—
Change in unrealized gains (losses) for the period included
in other comprehensive income for assets held at the end
of the reporting period
—
—
14
—
—
—
(1)Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e., interest rate lock agreements) that are transferred to loans
held for sale, which is classified as Level 2.
2026 2Q Form 10-Q 80
Table of Contents
Assets and liabilities under the fair value option
The following table presents the fair value and aggregate principal balance of certain assets and liabilities under
the fair value option.
Total Loans
Loans that are 90 or more days past due
(dollar amounts in millions)
Fair value
carrying
amount
Aggregate
unpaid
principal
Difference
Fair value
carrying
amount
Aggregate
unpaid
principal
Difference
At June 30, 2026
Assets
Loans held for sale
$1,287
$1,253
$34
$—
$—
$—
Loans held for investment
164
176
(12)
6
7
(1)
Liabilities
Long-term debt
1,250
1,258
8
At December 31, 2025
Assets
Loans held for sale
$885
$855
$30
$—
$—
$—
Loans held for investment
167
179
(12)
3
4
(1)
Liabilities
Long-term debt
1,161
1,151
(10)
The following table presents the net gains (losses) from fair value changes.
Three Months Ended
Six Months Ended
(dollar amounts in millions)
Classification
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Loans held for sale
Mortgage banking income
$12
$9
$4
$15
Loans held for investment
Mortgage banking income
(1)
—
—
(1)
Long-term debt
Other noninterest income
(7)
(4)
18
(5)
Assets and Liabilities measured at fair value on a nonrecurring basis
Certain assets and liabilities may be required to be measured at fair value on a nonrecurring basis in periods
subsequent to their initial recognition. These assets and liabilities are not measured at fair value on an ongoing
basis; however, they are subject to fair value adjustments in certain circumstances, for example, when there is
evidence of impairment. The gains (losses) represent the amounts recorded during the period regardless of whether
the asset is still held at period end.
The amounts measured at fair value on a nonrecurring basis were as follows.
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
Total Losses
Three Months Ended
Six Months Ended
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Collateral-dependent loans
$143
$74
$(51)
$(20)
$(88)
$(43)
Huntington records nonrecurring adjustments of collateral-dependent loans held for investment. Such amounts
are generally based on the fair value of the underlying collateral supporting the loan. Appraisals are generally
obtained to support the fair value of the collateral and incorporate measures such as recent sales prices for
comparable properties and cost of construction. Periodically, in cases where the carrying value exceeds the fair
value of the collateral less cost to sell, an impairment charge is recognized in the form of a charge-off.
2026 2Q Form 10-Q 81
Table of Contents
Significant unobservable inputs for assets and liabilities measured at fair value
The following table presents quantitative information about the significant unobservable inputs for assets and
liabilities measured at fair value.
Quantitative Information about Level 3 Fair Value Measurements (1)
At June 30, 2026
At December 31, 2025
(dollar amounts in millions)
Valuation Technique
Significant Unobservable Input
Range
Weighted
Average
Range
Weighted
Average
Measured at fair value on a recurring basis:
MSRs
Discounted cash flow
Constant prepayment rate
7%
-
64%
8%
6%
-
61%
8%
Spread over forward interest
rate swap rates
5%
-
11%
5%
5%
-
11%
5%
Municipal securities and asset-
backed securities
Discounted cash flow
Discount rate
4%
-
5%
4%
4%
-
4%
4%
Cumulative default
—%
-
64%
3%
—%
-
64%
3%
Loss given default (2)
20%
20%
(1) Certain disclosures related to quantitative level 3 fair value measurements do not include those deemed to be immaterial.
(2) The range is not meaningful for this unobservable input.
The following provides a general description of the impact of a change in an unobservable input on the fair value
measurement and the interrelationship between unobservable inputs, where relevant/significant. Interrelationships
may also exist between observable and unobservable inputs.
Components of credit loss estimates including probability of default, constant default, cumulative default, loss
given default, cure given deferral, and loss severity, are driven by the ability of the borrowers to pay their loans and
the value of the underlying collateral and are impacted by changes in macroeconomic conditions, typically increasing
when economic conditions worsen and decreasing when conditions improve. An increase in the estimated
prepayment rate typically results in a decrease in estimated credit losses and vice versa. Higher credit loss estimates
generally result in lower fair values. Credit spreads generally increase when liquidity risks and market volatility
increase and decrease when liquidity conditions and market volatility improve.
Discount rates and spread over forward interest rate swap rates typically increase when market interest rates
increase and/or credit and liquidity risks increase and decrease when market interest rates decline and/or credit and
liquidity conditions improve. Higher discount rates and credit spreads generally result in lower fair market values.
Fair values of financial instruments
Many of the assets and liabilities subject to the disclosure requirements are not actively traded, requiring fair
values to be estimated by management. These estimations necessarily involve the use of judgment about a wide
variety of factors, including, but not limited to, relevancy of market prices of comparable instruments, expected
future cash flows, and appropriate discount rates.
The short-term nature of certain assets and liabilities result in their carrying value approximating fair value.
These include trading account assets, customers’ acceptance liabilities, short-term borrowings, bank acceptances
outstanding, and cash and short-term assets, which include cash and due from banks and interest-earning deposits
with banks. Loan commitments and letters-of-credit generally have short-term, variable-rate features and contain
clauses that limit Huntington’s exposure to changes in customer credit quality. Accordingly, their carrying values,
which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value.
Certain assets, the most significant being operating lease assets, bank-owned life insurance, and premises and
equipment, do not meet the definition of a financial instrument and are excluded from this disclosure. Similarly,
mortgage servicing rights and relationship intangibles are not considered financial instruments and are not included
in the following tables. Accordingly, this fair value information is not intended to, and does not, represent
Huntington’s underlying value.
2026 2Q Form 10-Q 82
Table of Contents
The following table provides the carrying amounts and estimated fair values of Huntington’s financial
instruments.
(dollar amounts in millions)
Amortized Cost
Lower of Cost or
Market
Fair Value or
Fair Value Option
Total Carrying
Amount
Estimated Fair
Value
At June 30, 2026
Financial Assets
Cash and short-term assets
$16,044
$—
$—
$16,044
$16,044
Trading account assets
—
—
326
326
326
Available-for-sale securities
—
—
35,206
35,206
35,206
Held-to-maturity securities
14,384
—
—
14,384
12,677
Other securities
1,310
—
73
1,383
1,383
Loans held for sale
—
599
1,287
1,886
1,886
Net loans and leases (1)
186,009
—
164
186,173
185,314
Derivative assets
—
—
237
237
237
Assets held in trust for deferred compensation
plans
—
—
236
236
236
Financial Liabilities
Deposits (2)
222,466
—
—
222,466
222,463
Short-term borrowings
2,781
—
330
3,111
3,111
Long-term debt
17,488
—
1,250
18,738
18,951
Derivative liabilities
—
—
740
740
740
At December 31, 2025
Financial Assets
Cash and short-term assets
$14,078
$—
$—
$14,078
$14,078
Trading account assets
—
—
63
63
63
Available-for-sale securities
—
—
26,132
26,132
26,132
Held-to-maturity securities
15,258
—
—
15,258
13,636
Other securities
952
—
42
994
994
Loans held for sale
—
530
885
1,415
1,420
Net loans and leases (1)
146,938
—
167
147,105
146,273
Derivative assets
—
—
247
247
247
Assets held in trust for deferred compensation
plans
—
—
216
216
216
Financial Liabilities
Deposits (2)
176,610
—
—
176,610
176,610
Short-term borrowings
1,123
—
138
1,261
1,261
Long-term debt
16,060
—
1,161
17,221
17,479
Derivative liabilities
—
—
350
350
350
(1)Includes collateral-dependent loans.
(2)Includes $4.4 billion and $2.1 billion in time deposits in excess of the FDIC insurance coverage limit at June 30, 2026 and December 31, 2025, respectively.
2026 2Q Form 10-Q 83
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The following table presents the level in the fair value hierarchy for the estimated fair values.
Estimated Fair Value Measurements at Reporting Date Using
Netting
Estimated Fair Value
(dollar amounts in millions)
Level 1
Level 2
Level 3
Adjustments (1)
At June 30, 2026
Financial Assets
Trading account assets
$10
$316
$—
$—
$326
Available-for-sale securities
8,777
21,801
4,628
—
35,206
Held-to-maturity securities
2,111
10,566
—
—
12,677
Other securities (2)
30
43
—
—
73
Loans held for sale
—
1,287
599
—
1,886
Net loans and leases
—
102
185,212
—
185,314
Derivative assets
—
547
12
(322)
237
Financial Liabilities
Deposits
—
192,922
29,541
—
222,463
Short-term borrowings
260
2,851
—
—
3,111
Long-term debt
—
13,698
5,253
—
18,951
Derivative liabilities
—
975
3
(238)
740
At December 31, 2025
Financial Assets
Trading account assets
$—
$63
$—
$—
$63
Available-for-sale securities
4,635
17,389
4,108
—
26,132
Held-to-maturity securities
2,368
11,268
—
—
13,636
Other securities (2)
30
12
—
—
42
Loans held for sale
—
885
535
—
1,420
Net loans and leases
—
105
146,168
—
146,273
Derivative assets
—
499
8
(260)
247
Financial Liabilities
Deposits
—
158,472
18,138
—
176,610
Short-term borrowings
131
1,130
—
—
1,261
Long-term debt
—
12,336
5,143
—
17,479
Derivative liabilities
—
514
5
(169)
350
(1)Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash
collateral held or placed with the same counterparties.
(2)Excludes securities without readily determinable fair values.
2026 2Q Form 10-Q 84
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15. DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments are recorded in the Unaudited Consolidated Balance Sheets as either an asset or
a liability (in other assets or other liabilities, respectively) and measured at fair value.
Derivative financial instruments can be designated as accounting hedges under GAAP. Designating a derivative
as an accounting hedge allows Huntington to recognize gains and losses on the hedging instruments in the income
statement line item where the gains and losses on the hedged item are recognized. Gains and losses on derivatives
that are not designated in an effective hedge relationship under GAAP immediately impact earnings within the
period they occur.
The following table presents the fair values and notional values of all derivative instruments included in the
Unaudited Consolidated Balance Sheets. Amounts in the table below are presented gross without the impact of any
net collateral arrangements.
At June 30, 2026
At December 31, 2025
(dollar amounts in millions)
Notional Value
Asset
Liability
Notional Value
Asset
Liability
Derivatives designated as Hedging Instruments
Interest rate contracts
$43,596
$44
$207
$43,996
$109
$28
Foreign exchange contracts
273
—
5
809
4
—
Derivatives not designated as Hedging Instruments
Interest rate contracts
57,916
314
625
49,284
260
389
Foreign exchange contracts
7,956
98
76
7,085
58
60
Equity contracts
878
36
3
912
33
5
Commodities contracts
1,175
64
62
822
40
37
Credit contracts
93
3
—
139
3
—
Total contracts
$111,887
$559
$978
$103,047
$507
$519
The following table presents the amount of gain or loss recognized in income for derivatives not designated as
hedging instruments under ASC Subtopic 815-10 in the Unaudited Consolidated Income Statement.
Location of Gain or (Loss) Recognized in
Income on Derivatives
Amount of Gain or (Loss) Recognized in Income on Derivatives
Three Months Ended
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Interest rate contracts:
Customer
Capital markets and advisory fees
$18
$13
$30
$21
Mortgage banking
Mortgage banking income
(18)
(21)
(10)
—
Foreign exchange contracts
Capital markets and advisory fees
14
13
27
24
Equity contracts
Other noninterest income and other
noninterest expense
3
4
(4)
1
Commodities contracts
Capital markets and advisory fees
1
1
2
2
Credit contracts
Other noninterest income
(1)
(2)
(2)
(4)
Total
$17
$8
$43
$44
Derivatives used in asset and liability management activities
Huntington engages in balance sheet hedging activity, principally for asset and liability management purposes.
Balance sheet hedging activity is generally arranged to receive hedge accounting treatment that can be classified as
either fair value or cash flow hedges. Fair value hedges are executed to hedge changes in fair value of outstanding
fixed-rate debt and investment securities caused by fluctuations in market interest rates. Cash flow hedges are
executed to modify interest rate characteristics of designated commercial loans in order to reduce the impact of
changes in future cash flows due to market interest rate changes.
2026 2Q Form 10-Q 85
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The following table presents the gross notional values of derivatives used in Huntington’s asset and liability
management activities at June 30, 2026 and December 31, 2025, identified by the underlying interest rate-sensitive
instruments.
(dollar amounts in millions)
Fair Value Hedges
Cash Flow Hedges
Economic Hedges
Total
At June 30, 2026
Instruments associated with:
Investment securities
$5,622
$—
$—
$5,622
Loans
—
25,575
28
25,603
Long-term debt
12,399
—
—
12,399
Total notional value
$18,021
$25,575
$28
$43,624
At December 31, 2025
Instruments associated with:
Investment securities
$5,147
$—
$—
$5,147
Loans
—
28,250
28
28,278
Long-term debt
10,599
—
—
10,599
Total notional value
$15,746
$28,250
$28
$44,024
These derivative financial instruments were entered into for the purpose of managing the interest rate risk of
assets and liabilities. Net amounts receivable or payable on contracts hedging either interest-earning assets or
interest-bearing liabilities were accrued as an adjustment to either interest income or interest expense. Adjustments
to interest income were also recorded for the amounts related to the amortization of premiums for floors that were
not included in the measurement of hedge effectiveness, as well as the amounts related to terminated hedges
reclassified from AOCI. The net amounts resulted in decreases to net interest income of $18 million and $7 million
for the three-month periods ended June 30, 2026, and 2025, respectively, and decreases to net income of $33
million and $25 million for the six-month periods ended June 30, 2026, and 2025, respectively.
Fair Value Hedges
The changes in fair value of the fair value hedges are recorded through earnings and offset against changes in
the fair value of the hedged item.
Huntington has designated $5.6 billion of interest rate swaps as fair value hedges of fixed-rate investment
securities using the portfolio layer method. This approach allows the Company to designate as the hedged item a
stated amount of the assets that are not expected to be affected by prepayments, defaults, or other factors affecting
the timing and amount of cash flows. The fair value portfolio level basis adjustment on our hedged MBS portfolio
has not been attributed to the individual AFS securities in our Unaudited Consolidated Balance Sheets.
The following table presents the change in fair value for derivatives designated as fair value hedges as well as
the offsetting change in fair value on the hedged item.
Three Months Ended
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Interest rate contracts
Change in fair value of interest rate swaps hedging investment securities (1)
$5
$(140)
$27
$(262)
Change in fair value of hedged investment securities (1)
(9)
138
(27)
261
Change in fair value of interest rate swaps hedging long-term debt (2)
(33)
72
(103)
215
Change in fair value of hedged long-term debt (2)
33
(72)
104
(215)
(1)Recognized in Interest income—available-for-sale securities—taxable in the Unaudited Consolidated Statements of Income.
(2)Recognized in Interest expense—long-term debt in the Unaudited Consolidated Statements of Income.
2026 2Q Form 10-Q 86
Table of Contents
The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair
value hedges.
Amortized Cost
Cumulative Amount of Fair Value Hedging
Adjustment To Hedged Items
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
At June 30, 2026
At December 31, 2025
Assets
Available-for-sale securities (1)
$15,525
$11,402
$(222)
$(177)
Liabilities
Long-term debt (2)
15,545
11,066
(173)
1
(1)Amounts represent the amortized cost basis of closed portfolios used to designate hedging relationships under the portfolio layer method. The hedged
item is a layer of the closed portfolio that is expected to be remaining at the end of the hedging relationship.
(2)Excluded from the above table are the cumulative amounts of fair value hedge adjustments remaining for long-term debt for which hedge accounting has
been discontinued in the amounts of $(35) million at June 30, 2026 and $(42) million at December 31, 2025.
Cash Flow Hedges
At June 30, 2026, Huntington had $25.6 billion of interest rate swaps and floors that are designated as cash flow
hedges for variable-rate commercial loans. The change in the fair value of a derivative instrument designated as a
cash flow hedge is initially recognized in OCI and is reclassified into income when the hedged item impacts earnings.
The initial premium paid for the interest rate floor contracts represents the time value of the contracts and is not
included in the measurement of hedge effectiveness. The initial premium paid is amortized on a straight-line basis as
a reduction to interest income over the contractual life of these contracts.
At June 30, 2026, net losses recognized in AOCI that are expected to be reclassified into earnings within the next
12 months totaled $11 million.
Derivatives used in mortgage banking activities
Mortgage loan origination hedging activity
Huntington uses derivatives, principally loan sale commitments, in hedging its mortgage loan interest rate lock
commitments and its mortgage loans held for sale. Mortgage loan sale commitments and the related interest rate
lock commitments are carried at fair value on the Unaudited Consolidated Balance Sheets with changes in fair value
reflected in mortgage banking income. Huntington’s mortgage origination hedging activity is related to economically
hedging Huntington’s mortgage pricing commitments to customers and the secondary sale to third parties. The
value of a newly originated mortgage is not firm until the interest rate is committed or locked. Forward
commitments to sell economically hedge the possible loss on interest rate lock commitments due to interest rate
change. These derivatives were in a net asset position of $4 million at June 30, 2026 and $2 million at December 31,
2025. At June 30, 2026 and December 31, 2025, Huntington had commitments to sell residential real estate loans of
$1.9 billion and $1.2 billion, respectively. These contracts mature in less than one year.
MSR hedging activity
Huntington also uses certain derivative financial instruments to offset changes in value of its MSRs. These
derivatives consist primarily of forward interest rate agreements and forward mortgage contracts. The derivative
instruments used are not designated as qualifying hedges. Accordingly, such derivatives are recorded at fair value
with changes in fair value reflected in mortgage banking income. Huntington’s MSR economic hedging activity uses
securities and derivatives to manage volatility of the MSR asset value to mitigate the risks inherent in the MSR
assets, which include duration, basis, convexity, and volatility. The hedging instruments include forward
commitments, TBA securities, Treasury future contracts, and interest rate swaps.
2026 2Q Form 10-Q 87
Table of Contents
MSR hedging trading assets and liabilities are included in other assets and other liabilities, respectively, in the
Unaudited Consolidated Balance Sheets. Trading gains (losses) are included in mortgage banking income in the
Unaudited Consolidated Statements of Income. The notional value of the derivative financial instruments, the
corresponding trading assets and liabilities positions, and net trading gains (losses) related to MSR hedging activity
are summarized in the following tables.
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
Notional value
$2,525
$2,658
Trading liabilities
21
18
Three Months Ended
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Trading gains (losses)
$8
$(6)
$(2)
$9
Derivatives used in customer-related activities
Various derivative financial instruments are offered to enable customers to meet their financing and investing
objectives and for their risk-management purposes. Derivative financial instruments used in trading activities consist
of commodity, interest rate, and foreign exchange contracts. Huntington enters into offsetting third-party contracts
with approved, reputable counterparties with substantially matching terms and currencies in order to economically
hedge significant exposure related to derivatives used in trading activities.
The interest rate or price risk of customer derivatives is mitigated by entering into similar derivatives having
offsetting terms with other counterparties. The credit risk to these customers is evaluated and included in the
calculation of fair value.
The net fair values of these derivative financial instruments, for which the gross amounts are included in other
assets or other liabilities at June 30, 2026 and December 31, 2025, were $69 million and $58 million, respectively.
The total notional values of derivative financial instruments used by Huntington on behalf of customers, including
offsetting derivatives, were $61.8 billion and $52.8 billion at June 30, 2026 and December 31, 2025, respectively.
Huntington’s credit risk from customer derivatives was $99 million and $168 million at the same dates, respectively.
Credit derivative instruments
Huntington enters into credit default swaps to hedge credit risk associated with certain loans and leases. These
contracts are accounted for as derivatives, and accordingly, these contracts are recorded at fair value.
Financial assets and liabilities that are offset in the Unaudited Consolidated Balance Sheets
Huntington records derivatives at fair value as further described in Note 14 - “Fair Values of Assets and
Liabilities”.
Derivative balances are presented on a net basis taking into consideration the effects of legally enforceable
master netting agreements. Additionally, collateral exchanged with counterparties is also netted against the
applicable derivative fair values. Huntington enters into derivative transactions with two primary groups: 1) broker-
dealers and banks and 2) Huntington’s customers. Different methods are utilized for managing counterparty credit
exposure and credit risk for each of these groups.
Huntington enters into transactions with broker-dealers and banks for various risk management purposes. These
types of transactions generally are high dollar volume. Huntington enters into collateral and master netting
agreements with these counterparties and routinely exchanges cash and high quality securities collateral.
Huntington also enters into transactions with customers to meet their financing, investing, payment, and risk-
management needs. These types of transactions generally are low dollar volume. Huntington enters into master
netting agreements with customer counterparties; however, collateral is generally not exchanged with customer
counterparties.
In addition, Huntington clears certain derivative transactions through a clearinghouse, rather than directly with
counterparties. Transactions cleared through a clearinghouse require initial margin collateral and variation margin
payments depending on the contracts being in a net asset or liability position.
2026 2Q Form 10-Q 88
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In addition to the customer derivative credit exposure, aggregate credit risk associated with broker-dealer and
bank derivative transactions was net credit risk of $60 million and $73 million at June 30, 2026 and December 31,
2025, respectively. The net credit risk associated with derivatives is calculated after considering master netting
agreements and is reduced by collateral that has been pledged by the counterparty.
At June 30, 2026, Huntington pledged $467 million of investment securities and cash collateral to
counterparties, while other counterparties pledged $237 million of investment securities and cash collateral to
Huntington to satisfy collateral netting agreements. In the event of credit downgrades, Huntington would not be
required to provide additional collateral.
The following tables present the gross amounts of these assets and liabilities with any offsets to arrive at the net
amounts recognized in the Unaudited Consolidated Balance Sheets.
Offsetting of Financial Assets and Derivative Assets
Gross amounts
of recognized
assets
Gross amounts
offset in the
unaudited
consolidated
balance sheets
Net amounts of
assets
presented in
the unaudited
consolidated
balance sheets
Gross amounts not offset in the
unaudited consolidated
balance sheets
(dollar amounts in millions)
Financial
instruments
Cash collateral
received
Net amount
At June 30, 2026
$559
$(322)
$237
$(8)
$(67)
$162
At December 31, 2025
507
(260)
247
(2)
(100)
145
Offsetting of Financial Liabilities and Derivative Liabilities
Gross amounts
of recognized
liabilities
Gross amounts
offset in the
unaudited
consolidated
balance sheets
Net amounts of
liabilities
presented in the
unaudited
consolidated
balance sheets
Gross amounts not offset in the
unaudited consolidated
balance sheets
(dollar amounts in millions)
Financial
instruments
Cash collateral
delivered
Net amount
At June 30, 2026
$978
$(238)
$740
$(256)
$(199)
$285
At December 31, 2025
519
(169)
350
(120)
(15)
215
16. VARIABLE INTEREST ENTITIES
Consolidated VIEs
Huntington engages in activities with VIEs in the normal course of business that result in Huntington being the
primary beneficiary and which are consolidated in Huntington’s financial statements. The following table provides a
summary of the assets and liabilities of VIEs carried on Huntington’s Unaudited Consolidated Balance Sheets.
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
Assets
Net loans and leases
$493
$669
Other assets
468
431
Total assets
$961
$1,100
Liabilities
Long-term borrowings
$428
$600
Other liabilities
134
152
Total liabilities
$562
$752
Huntington previously completed a securitization transaction by transferring automobile loans to a SPE which
was deemed to be a VIE, with the SPE in turn issuing asset-backed notes. The primary purpose of the VIE in the
securitization transaction was to issue asset-backed securities with varying levels of credit subordination and
payment priority. Huntington retained notes and residual interest in the VIE and, therefore, has an obligation to
absorb losses and a right to receive benefits that could potentially be significant to the VIE. In addition, Huntington
retained servicing rights for the underlying loans and, therefore, holds the power to direct the activities of the VIE
that most significantly impact the economic performance of the VIE. The assets of the VIE are restricted to the
settlement of the asset-backed securities and other obligations of the VIE. Third-party holders of the asset-backed
notes do not have recourse to the general assets of Huntington.
2026 2Q Form 10-Q 89
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The economic performance of the VIE is most significantly impacted by the performance of the underlying loans.
The VIE is exposed to credit and prepayment risk, which are managed through credit enhancements in the form of
reserve accounts, over-collateralization, excess interest on the loans, and the subordination of certain classes of
asset-backed securities.
Consolidated VIEs at June 30, 2026 and December 31, 2025 also included investments in LIHTC operating entities
that were syndicated and where we serve as the general partner and manager. As manager of these entities, we
have the power to direct the activities that most significantly impact economic performance, as well as an obligation
to absorb significant expected losses, of the entities.
Unconsolidated VIEs
The following tables provide a summary of the assets and liabilities included in Huntington’s Unaudited
Consolidated Financial Statements, as well as the maximum exposure to losses, associated with its interests related
to unconsolidated VIEs for which Huntington holds an interest in, but is not the primary beneficiary.
(dollar amounts in millions)
Total Assets
Total Liabilities
Maximum
Exposure to Loss
At June 30, 2026
Affordable housing tax credit partnerships
$3,097
$1,269
$3,097
Trust preferred securities
14
248
—
Other investments
1,925
338
1,925
Total
$5,036
$1,855
$5,022
At December 31, 2025
Affordable housing tax credit partnerships
$2,453
$946
$2,453
Trust preferred securities
14
262
—
Other investments
1,465
196
1,465
Total
$3,932
$1,404
$3,918
Affordable Housing and Other Tax Credit Investments
Huntington makes certain equity investments in various limited partnerships that sponsor affordable housing
projects utilizing the LIHTC pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments
is to achieve a satisfactory return on capital, to facilitate the sale of additional affordable housing product offerings,
and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of the
limited partnerships include the identification, development, and operation of multi-family housing that is leased to
qualifying residential tenants. Generally, these types of investments are funded through a combination of debt and
equity.
Huntington uses the proportional amortization method to account for a majority of its investments in these
entities. These investments are included in other assets. Investments that do not meet the requirements of the
proportional amortization method are accounted for using the equity method. Investment losses are included in
Other noninterest income in the Unaudited Consolidated Statements of Income.
The following table presents the balances of Huntington’s affordable housing tax credit investments and related
unfunded commitments.
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
Affordable housing tax credit investments
$4,680
$3,898
Less: amortization
(1,583)
(1,445)
Net affordable housing tax credit investments
$3,097
$2,453
Unfunded commitments
$1,269
$946
2026 2Q Form 10-Q 90
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The following table presents other information relating to Huntington’s affordable housing tax credit
investments.
Three Months Ended
Six Months Ended
(dollar amounts in millions)
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Tax credits and other tax benefits recognized
$110
$87
$221
$173
Proportional amortization expense included in provision for income
taxes
85
71
167
141
The initial investment in affordable housing tax credit investments and subsequent tax credits, benefits, and
amortization are included within operating activities in the Unaudited Consolidated Statements of Cash Flows.
Trust-Preferred Securities
Huntington has certain wholly-owned trusts whose assets, liabilities, equity, income, and expenses are not
included within Huntington’s Unaudited Consolidated Financial Statements. These trusts have been formed for the
sole purpose of issuing trust-preferred securities, from which the proceeds are then invested in Huntington junior
subordinated debentures, which are reflected in Huntington’s Unaudited Consolidated Balance Sheet as long-term
debt. The trust securities are the obligations of the trusts, and as such, are not consolidated within Huntington’s
Unaudited Consolidated Financial Statements.
Other Investments
Other investments determined to be VIEs include investments in Small Business Investment Companies, Historic
Tax Credit Investments, certain equity method investments, renewable energy financings, and other miscellaneous
investments.
17. COMMITMENTS AND CONTINGENT LIABILITIES
Commitments to Extend Credit
In the ordinary course of business, Huntington makes various commitments to extend credit that are not
reflected in the Unaudited Consolidated Financial Statements. The contract amounts of these financial agreements
were as follows:
(dollar amounts in millions)
At June 30, 2026
At December 31, 2025
Contract amount representing credit risk
Commitments to extend credit:
Commercial and industrial
$56,581
$47,736
Consumer loan portfolio
24,954
21,659
Commercial real estate
6,409
4,036
Standby letters of credit and guarantees on industrial revenue bonds
1,488
895
Commitments to extend credit generally have fixed expiration dates, are variable-rate, and contain clauses that
permit Huntington to terminate or otherwise renegotiate the contracts in the event of a significant deterioration in
the customer’s credit quality. These arrangements normally require the payment of a fee by the customer, the
pricing of which is based on prevailing market conditions, credit quality, probability of funding, and other relevant
factors. Since many of these commitments are expected to expire without being drawn upon, the contract amounts
are not necessarily indicative of future cash requirements. The interest rate risk arising from these financial
instruments is insignificant as a result of their predominantly short-term, variable-rate nature. Certain commitments
to extend credit are secured by collateral, including residential and commercial real estate, inventory, receivables,
cash and securities, and other business assets.
Standby letters-of-credit and guarantees on industrial revenue bonds are conditional commitments issued to
guarantee the performance of a customer to a third-party. These conditional commitments are primarily issued to
support public and private borrowing arrangements, including commercial paper, bond financing, and similar
transactions and mature within two years. Since the conditions under which Huntington is required to fund these
conditional commitments may not materialize, the cash requirements are expected to be less than the total
outstanding commitments. The carrying amount of deferred revenue associated with these conditional
commitments was $34 million and $31 million at June 30, 2026 and December 31, 2025, respectively.
2026 2Q Form 10-Q 91
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Other Guarantees
Huntington provides guarantees to certain third-party investors in connection with the sale of syndicated
affordable housing tax credits. These guarantees are generally in the form of make-whole provisions that are
triggered if the underlying performance of LIHTC properties result in a shortfall to the third-party investors and
remain in effect until the final associated tax credits are realized. The maximum amount guaranteed by the Company
under these arrangements total approximately $405 million and $366 million at June 30, 2026 and December 31,
2025, respectively, and represents the guaranteed portion in these transactions where the make-whole provisions
have not yet expired. As of June 30, 2026, the Company did not expect to be subject to any make-whole provisions
under these guarantees.
Litigation and Regulatory Matters
In the ordinary course of business, Huntington is, or may be a defendant in, or party to pending and threatened
legal and regulatory actions and proceedings.
In view of the inherent difficulty of predicting the outcome of such matters, particularly where the claimants
seek very large or indeterminate damages or where the matters present novel legal theories or involve a large
number of parties, Huntington generally cannot predict what the eventual outcome of the pending matters will be,
what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines, or penalties
related to each matter may be.
Huntington establishes an accrued liability when those matters present loss contingencies that are both
probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued.
Huntington thereafter continues to monitor the matter for further developments that could affect the amount of
the accrued liability that has been previously established.
For certain matters, Huntington is able to estimate a range of possible loss. In cases in which Huntington
possesses information to estimate a range of possible loss, that estimate is aggregated and disclosed below. There
may be other matters for which a loss is probable or reasonably possible but such an estimate of the range of
possible loss may not be possible. For those matters where an estimate of the range of possible loss is possible,
management currently estimates the aggregate range of reasonably possible loss is $0 to $75 million at June 30,
2026 in excess of the accrued liability (if any) related to those matters. This estimated range of possible loss is based
upon currently available information and is subject to significant judgment, a variety of assumptions, and known and
unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual
results may vary significantly from the current estimate. The estimated range of possible loss does not represent
Huntington’s maximum loss exposure.
Based on current knowledge, management does not believe that loss contingencies arising from pending
matters will have a material adverse effect on the consolidated financial position of Huntington. Further,
management believes that amounts accrued are adequate to address Huntington’s contingent liabilities. However,
in light of the inherent uncertainties involved in these matters, some of which are beyond Huntington’s control, and
the large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these
matters could be material to Huntington’s results of operations for any particular reporting period.
The following is a description of a legal proceeding in which Huntington or its predecessors are involved:
Donelon v. Americas Insurance Co., No. 714,982 (19th Jud. Dist. Ct., Parish of E. Baton Rouge, La.), consolidated
with Cadence Bank v. Bostick, No. 717212 (19th Jud. Dist. Ct., Parish of E. Baton Rouge, La.) (filed January 13, 2023).
This action arises from an $8 million loan Cadence Bank made in November 2020 under the Federal Reserve’s
Main Street Lending Program (“MSLP”) to a holding company, which owned an insurance carrier, which carrier was
later placed into receivership following substantial losses associated with the August 2021 Category 4 Hurricane Ida.
The action, brought by the receiver on behalf of the Louisiana Insurance Commission, alleges the MSLP loan required
insurance regulatory approval that was not properly obtained by the insurance company. The receiver alleges the
MSLP loan improperly enabled the insurer to continue operations, which allegedly may not have occurred but for
the MSLP loan.
2026 2Q Form 10-Q 92
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All claims against Cadence, aside from conspiracy to commit fraud and conspiracy to commit breach of fiduciary
duty, have either been dismissed or withdrawn. The receiver seeks approximately $350 million in compensatory
damages, as well as punitive damages. The trial court heard Cadence’s challenge to the remaining claims on July 1,
2026, and took the matter under advisement. Cadence also disputes the availability of punitive damages, and a
hearing on that issue is set for August 4, 2026, in the Louisiana First Circuit Court of Appeal.
Trial is currently scheduled to commence on November 4, 2026. Cadence has consistently denied all allegations
of wrongdoing, denies that any alleged damages were the result of the MSLP loan, and intends to continue
vigorously defending the litigation.
18. SEGMENT REPORTING
Huntington’s business segments are based on our internally aligned segment leadership structure, which is how
management monitors results and assesses performance. Huntington reports on two business segments: Consumer
& Regional Banking and Commercial Banking. All other items not included within our two business segments are
reported within the Treasury / Other function, which primarily includes technology and operations, other
unallocated assets, liabilities, revenue, and expenses. For a description of our business segments, see Note 25 -
“Segment Reporting” to the Consolidated Financial Statements appearing in Huntington’s 2025 Annual Report on
Form 10-K.
The following tables present certain operating basis financial information for each reportable business segment
reconciled to Huntington’s consolidated financial results.
Consumer &
Regional Banking
Commercial
Banking
Treasury / Other
Huntington
Consolidated
(dollar amounts in millions)
Three months ended June 30, 2026
Net interest income (loss)
$1,458
$719
$(125)
$2,052
Provision for credit losses
44
87
1
132
Net interest income (loss) after provision for credit losses
1,414
632
(126)
1,920
Noninterest income
457
275
53
785
Noninterest expense:
Direct personnel costs
416
200
394
1,010
Other noninterest expense, including corporate allocations
741
244
(186)
799
Total noninterest expense
1,157
444
208
1,809
Income (loss) before income taxes
714
463
(281)
896
Provision (benefit) for income taxes
150
97
(82)
165
Income attributable to non-controlling interest
—
4
—
4
Net income (loss) attributable to Huntington
$564
$362
$(199)
$727
Three months ended June 30, 2025
Net interest income (loss)
$1,014
$513
$(60)
$1,467
Provision (benefit) for credit losses
138
(35)
—
103
Net interest income (loss) after provision for credit losses
876
548
(60)
1,364
Noninterest income
339
177
(45)
471
Noninterest expense:
Direct personnel costs
305
149
268
722
Other noninterest expense, including corporate allocations
535
168
(228)
475
Total noninterest expense
840
317
40
1,197
Income (loss) before income taxes
375
408
(145)
638
Provision (benefit) for income taxes
78
86
(68)
96
Income attributable to non-controlling interest
—
6
—
6
Net income (loss) attributable to Huntington
$297
$316
$(77)
$536
2026 2Q Form 10-Q 93
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Consumer &
Regional Banking
Commercial
Banking
Treasury / Other
Huntington
Consolidated
(dollar amounts in millions)
Six months ended June 30, 2026
Net interest income (loss)
$2,823
$1,359
$(239)
$3,943
Provision for credit losses
164
125
1
290
Net interest income (loss) after provision for credit losses
2,659
1,234
(240)
3,653
Noninterest income
844
527
96
1,467
Noninterest expense:
Direct personnel costs
789
393
820
2,002
Other noninterest expense, including corporate allocations
1,435
462
(316)
1,581
Total noninterest expense
2,224
855
504
3,583
Income (loss) before income taxes
1,279
906
(648)
1,537
Provision (benefit) for income taxes
269
190
(180)
279
Income attributable to non-controlling interest
—
8
—
8
Net income (loss) attributable to Huntington
$1,010
$708
$(468)
$1,250
Six months ended June 30, 2025
Net interest income (loss)
$1,957
$1,026
$(90)
$2,893
Provision for credit losses
185
33
—
218
Net interest income (loss) after provision for credit losses
1,772
993
(90)
2,675
Noninterest income
666
339
(40)
965
Noninterest expense:
Direct personnel costs
599
288
506
1,393
Other noninterest expense, including corporate allocations
1,060
332
(436)
956
Total noninterest expense
1,659
620
70
2,349
Income (loss) before income taxes
779
712
(200)
1,291
Provision (benefit) for income taxes
163
150
(95)
218
Income attributable to non-controlling interest
—
10
—
10
Net income (loss) attributable to Huntington
$616
$552
$(105)
$1,063
Assets
Deposits
(dollar amounts in millions)
At June 30, 2026
At December 31,
2025
At June 30, 2026
At December 31,
2025
Consumer & Regional Banking
$116,050
$87,307
$150,687
$117,188
Commercial Banking
98,134
79,798
62,713
50,657
Treasury / Other
69,800
58,001
9,066
8,765
Total
$283,984
$225,106
$222,466
$176,610
2026 2Q Form 10-Q 94
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Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 3 | 3 | 1 |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | 0 |
| Recession recession, downturn, contraction, slowdown | 2 | 2 | 1 |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 5 | 5 | 1 |
| Buybacks share repurchase, buyback program | 7 | — | 1 |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Not placed in the text
These quotes are stored with a score, but no passage here matches them closely enough to highlight. Rather than point at the wrong passage, they are listed as stored.
Theme · Acquisition integration impact
“Noninterest expense for the second quarter of 2026 included $152 million of acquisition-related expenses.”
Theme · Net interest income growth
“Net interest income for the second quarter of 2026 increased $585 million, or 40%, from the year-ago quarter.”
Source: SEC EDGAR · public domain · Highlights by Palanor