Huntington Bancshares (HBAN) Q3 2026 Earnings Call: Q&A Summary

Q: Erika Najarian with UBS asked whether the bank is done with cuts and what factors were miscalculated in the 2027 outlook.

A: Steve Steinour and Eric Wasserstrom answered that a vastly different interest rate, inflation, and competitive environment drove earlier adjustments. Eric Wasserstrom provided a mathematical bridge from current consensus to next year's targets, detailing incremental cost synergies of $150 million, share buybacks, and core earnings growth.

Q: Erika Najarian asked whether commercial real estate deals in new markets failed the bank's test and if the PPNR growth has been pressure tested.

A: Steve Steinour answered that significant refinance activity in July and August moved volume into Fannie Mae and Freddie Mac or debt funds, and that construction commitments were reduced by about 8% during the quarter to manage risk.

Q: Jon Arfstrom with RBC asked what changes the competitive environment and what the right pace of loan growth is.

A: Steve Steinour and Brant Standridge explained that the bank maintains an aggregate moderate to low risk appetite amidst a K-shaped economy, preferring to return capital rather than accept inadequate risk-adjusted returns.

Q: Jon Arfstrom asked if the moderation in lending is purely a competitive issue rather than credit-driven.

A: Steve Steinour confirmed that it is a strategic capital allocation decision regarding pricing in commercial real estate and indirect auto, noting that underwriting standards remain unchanged.

Q: Kenneth Usdin with Autonomous Research asked about the credit outlook embedded in the 2027 walk and potential reserve releases.

A: Brant Standridge and Eric Wasserstrom stated that credit performance remains stable with 27 basis points of charge-offs through nine months, and Eric Wasserstrom clarified that no reserve release is contemplated for 2027.

Q: Kenneth Usdin asked about tax rates and potential larger share repurchases.

A: Eric Wasserstrom stated that statutory tax rates are unchanged and outlined an expected share repurchase program of $1.8 billion to $1.9 billion between this year and next year.

Q: Manan Gosalia with Morgan Stanley asked about C&I loan demand drivers and the impact of higher rates or AI.

A: Brant Standridge answered that customer outlook is positive and CapEx spending remains strong across multiple growth levers, while Steve Steinour noted that asset finance and equipment finance businesses are benefiting from accelerated depreciation.

Q: John Pancari with Evercore ISI asked about banker and customer retention in the Texas acquisitions and their impact on pricing strategy.

A: Brant Standridge and Steve Steinour answered that leadership and banker retention are within expectations, customer attrition has been minimal, and revenue synergies are tracking higher than originally committed.

Q: John Pancari asked about deposit cost moderation, regional product pressures, and the deposit beta outlook.

A: Brant Standridge and Eric Wasserstrom stated that deposit pricing is stable and rational though competitive, particularly in CDs and Midwest money market accounts, and Eric Wasserstrom noted an expected beta of around 50% to 60%.

Q: Manan Gosalia asked if there is a higher likelihood of NIM expansion given curve movements.

A: Eric Wasserstrom answered that the baseline expectation remains a stable NIM due to conservative deposit cost assumptions, while curve steepening and competitive changes represent potential upside.

Q: Scott Siefers with TD Cowen asked where Huntington strives to play on pricing for loans and deposits relative to peers.

A: Brant Standridge and Eric Wasserstrom answered that the bank seeks to exchange value for value, rejecting volume when risk-adjusted returns are inadequate while continuing to grow organically at 6% with a nearly 17% ROTCE.

Q: Scott Siefers asked about the drivers behind the tweak to full-year fee guidance and the components of the $750 million fourth quarter estimate.

A: Eric Wasserstrom answered that outperformance in capital markets, treasury management, and wealth management drives the updated 31% annual fee growth expectation, despite rate volatility affecting capital markets late in the quarter.