Huntington Bancshares
Huntington Bancshares (HBAN) Economic Moat Analysis31
Competitive advantages, dated evidence and erosion risks.
None economic moat
The passages support a growing banking franchise but weak structural protection: technology has lowered entry barriers, and most disclosed customer revenue contracts are short-term or cancelable without penalty. Organic relationship growth demonstrates demand, not durable customer dependence. Observed deposit repricing and higher mortgage saleable spreads provide some pricing evidence, but fee growth largely reflects activity and acquisitions. No durable relative funding, pricing or scale advantage is established.
Changes since the previous analysis
- Changed from uncertain to none: the supplied disclosures affirmatively establish lowered entry barriers and weak contractual lock-in. Organic growth remains favorable evidence, but does not establish structural protection.
- Added pricing, compensation, governance and bank-specific financial assessments. Acquisition integration success remains a management assessment rather than demonstrated acquisition returns.
Evidence limitations
- Only supplied issuer passages were used. Filing dates retain dateKind filed; no retrieval date was treated as publication.
- Competition passages identify generic categories rather than named competing companies. Acquisition targets and transaction counterparties are not established competitors.
- Cancellation disclosures concern customer revenue contracts and should not be generalized to every loan or deposit arrangement.
- No comparative funding costs, customer attrition cohorts, market-share persistence or quantified switching burdens are supplied.
- The weak-protection conclusion would be invalidated by demonstrated persistent funding or pricing advantages alongside durable relationship retention and identifiable switching burdens. Organic primary-relationship outflows, rising funding dependence or lost pricing would instead reinforce it; these are testable conditions, not reported outcomes.
- Actual regulatory capital ratios, available liquidity capacity, consolidated 2026 net earnings and complete distribution coverage are missing. A disclosed stress buffer and management confidence cannot establish current capital headroom.
- Financial grades use filings dated February 13, March 12 or July 28, 2026, all within 550 days of October 18, 2026. Older filings do not establish current financial sufficiency.
- The proxy supplies existing compensation policies and 2025 awards, but individual ownership balances and evidence of ownership-policy compliance are absent. No proposed shareholder vote is treated as an adopted award.
Financial indicators to test against the thesis
Calculated from annual filings. Missing data remains unavailable. Detailed financial charts remain in the other topics.
| Period | Gross margin | Operating margin | ROIC | FCF margin |
|---|---|---|---|---|
| 2021 | — | — | — | 163.1% |
| 2022 | — | — | — | 289.3% |
| 2023 | — | — | — | 179.8% |
| 2024 | — | — | — | 113.9% |
| 2025 | — | — | — | 141.8% |
Pricing power50
- Pricing outcomes
Higher mortgage saleable spreads and observed falling-cycle deposit repricing provide mixed realized pricing evidence. Deposit beta declined from 35% through year-end 2025 to 30% through second-quarter 2026; fee growth also reflects volume, so broad price-setting power is unproven.
- Customer demand
Primary-relationship-driven organic core deposit growth provides indirect evidence of engagement and repeat demand, rather than a measured retention rate. Cancelable contracts limit lock-in.
- Margin resilience
FTE net interest margin improved 12 basis points to 3.23%, alongside substantial balance-sheet expansion. Acquisition costs and expense growth temper the evidence; net interest margin alone does not establish pricing power or consolidated margin resilience.
- Pricing freedom
Variable-rate credit commitments and conditional renegotiation rights provide some flexibility, while fees depend on market and credit conditions. Customer cancellation rights constrain the ability to impose terms; unrestricted repricing is not disclosed.
Management63
- Capital discipline
Retained earnings contributed to capital and actual repurchases occurred, but acquisitions also required equity issuance and substantial integration spending. Acquisition returns and current regulatory headroom are missing.
- Incentive alignment
Existing 2025 practices include predominantly performance-based long-term incentives, ownership requirements, recoupment and prohibitions on hedging and pledging. Committee adjustment discretion and absent individual ownership compliance prevent an exceptional assessment.
- Execution
Organic loan and core deposit growth demonstrate execution indirectly through operating results. Acquisition-related costs and additional nonaccrual loans make the current record mixed; management's integration-success statement is not proof of realized acquisition returns.
- Governance
A majority-independent year-end board, independent audit committee and executive sessions without management establish substantive oversight arrangements. Combined chairman and CEO roles and absent evidence of oversight outcomes limit the grade.
Sources and methodology
Current publication · Updated 18/10/2026 · Version 4
AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 18/10/2026
Moat31
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 1/4 · Lowered entry barriers and readily cancelable customer revenue contracts indicate weak structural protection. Organic growth does not demonstrate a relative cost or pricing advantage.
durability · 1/4 · Short contract duration and expanding technological alternatives weaken durable protection. No persistent comparative advantage is demonstrated.
customer dependency · 2/4 · Organic core deposit growth associated with primary relationships supports engagement indirectly. Cancellation rights and absent attrition evidence limit demonstrated dependence.
erosion resilience · 1/4 · Technology has already lowered industry entry barriers. Relationship growth shows continued demand, but does not establish resistance to substitution or price competition.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Higher mortgage saleable spreads and observed falling-cycle deposit repricing provide mixed realized pricing evidence. Deposit beta declined from 35% through year-end 2025 to 30% through second-quarter 2026; fee growth also reflects volume, so broad price-setting power is unproven.
retention · 2/4 · Primary-relationship-driven organic core deposit growth provides indirect evidence of engagement and repeat demand, rather than a measured retention rate. Cancelable contracts limit lock-in.
margin resilience · 2/4 · FTE net interest margin improved 12 basis points to 3.23%, alongside substantial balance-sheet expansion. Acquisition costs and expense growth temper the evidence; net interest margin alone does not establish pricing power or consolidated margin resilience.
contractual freedom · 2/4 · Variable-rate credit commitments and conditional renegotiation rights provide some flexibility, while fees depend on market and credit conditions. Customer cancellation rights constrain the ability to impose terms; unrestricted repricing is not disclosed.
Predictability78
Financial-sector stability over five consecutive reported annual periods: equal weights for nondeclining revenue frequency, revenue-growth volatility (5–40pp), positive consolidated earnings frequency, and net-income/revenue margin volatility (3–20pp). Uses reported accounting scope; not industrial FCF or a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 5.48
- positiveEarningsShare
- 100.00
- netMarginStdDev
- 17.39
Financial strength—
Insufficient current sector evidence for every criterion; no category score is inferred.
capital adequacy · — · The 2.5% stress capital buffer is disclosed, but actual regulatory capital ratios and complete applicable requirements are absent. Neither preferred issuance nor management confidence establishes current regulatory headroom.
liquidity funding · 2/4 · At June 2026, 69% of deposits were insured and 18% were noninterest-bearing. This supports a substantial deposit funding base, offset by 31% uninsured deposits and increased wholesale funding. Available liquidity capacity and depositor concentration are missing.
asset liability risk · 1/4 · NPAs increased 71%, including $295 million acquired with Cadence and additional nonaccrual increases across several portfolios. Favorable 2025 credit results provide context, but current deterioration warrants a weak assessment. Quantified interest-rate stress results are absent.
earnings resilience · 2/4 · Positive 2025 EPS and first-half 2026 interest and fee income growth support earnings capacity indirectly. Acquisition-driven growth, 53% expense growth and higher NPAs limit resilience; consolidated 2026 net income is not supplied.
Capital allocation—
Insufficient current sector evidence for every criterion; no category score is inferred.
capital efficiency · 3/4 · Reported 2025 ROTCE of 15.7% demonstrates strong returns within its tangible common equity scope. The adjusted 16.4% measure is separate; neither establishes returns on total equity or the enlarged 2026 franchise.
distributions and buffers · — · Actual repurchases and bank-to-parent dividends are disclosed, but complete shareholder distributions, consolidated earnings coverage and regulatory capital headroom are absent. Internal bank dividends are not shareholder payouts.
dilution and cost · 2/4 · Acquisition equity issuance, $741 million of preferred issuance and shares issued for award vesting create dilution or financing claims, partly offset by actual repurchases. Current compensation expense totals and a complete per-share accretion analysis are missing.
investment discipline · 2/4 · Organic growth and higher acquired-business-inclusive fee revenue show operating benefits, while $415 million of first-half acquisition expenses demonstrate material costs. Purchase-price returns and realized integration savings are absent, so disciplined acquisition economics remain only partly established.
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Retained earnings contributed to capital and actual repurchases occurred, but acquisitions also required equity issuance and substantial integration spending. Acquisition returns and current regulatory headroom are missing.
incentive alignment · 3/4 · Existing 2025 practices include predominantly performance-based long-term incentives, ownership requirements, recoupment and prohibitions on hedging and pledging. Committee adjustment discretion and absent individual ownership compliance prevent an exceptional assessment.
execution · 2/4 · Organic loan and core deposit growth demonstrate execution indirectly through operating results. Acquisition-related costs and additional nonaccrual loans make the current record mixed; management's integration-success statement is not proof of realized acquisition returns.
governance · 3/4 · A majority-independent year-end board, independent audit committee and executive sessions without management establish substantive oversight arrangements. Combined chairman and CEO roles and absent evidence of oversight outcomes limit the grade.
Evidence
Technology has lowered the barriers to entry, with customers having a growing variety of traditional and nontraditional alternatives, such as crowdfunding, digital wallets, cryptocurrencies, and money transfer services.
Risk factors: technology and lowered entry barriers · Filed 13/02/2026
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.
Revenue from contracts with customers: cancellation and duration · Filed 13/02/2026
During 2025, we delivered 11 percent revenue growth and generated approximately $10 billion of organic loan growth during the year, exceeding the loan growth added through combinations, along with approximately $5 billion of core deposit growth, driven by expanding primary bank relationships.
Board leadership letter: 2025 organic loans, core deposits and primary relationships · Filed 12/03/2026
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.
Liquidity risk: deposit composition at June 30, 2026 · Filed 28/07/2026
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.
Liquidity risk: wholesale funding · Filed 28/07/2026
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.
Liquidity risk: borrowings and debt issuance · Filed 28/07/2026
deposit beta (total cost of deposits) through the second quarter of 2026 was 30%.
Market risk: cumulative falling-cycle deposit beta through second-quarter 2026 · Filed 28/07/2026
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 fourth quarter of 2025 was 35%.
Market risk: cumulative falling-cycle deposit beta through fourth-quarter 2025 · Filed 13/02/2026
Mortgage banking income increased $11 million, or 8%, largely reflecting an increase in saleable spreads.
Results of operations: mortgage banking income and saleable spreads · Filed 13/02/2026
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.
Results of operations: customer deposit and loan fees · Filed 28/07/2026
At December 31, (dollar amounts in millions) 2025 2024 Contract amount representing credit risk Commitments to extend credit: Commercial and industrial $ 47,736 $ 37,422 Consumer loan portfolio 21,659 19,993 Commercial real estate 4,036 2,089 Standby letters of credit and guarantees on industrial revenue bonds 895 725 168 Huntington Bancshares Incorporated Table of Contents 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.
Commitments: variable rates and conditional renegotiation rights · Filed 13/02/2026
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.
Commitments: market- and credit-based fee pricing · Filed 13/02/2026
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.
Year-to-date net interest income: FTE margin and balance-sheet changes · Filed 28/07/2026
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% Noninterest expense in the second quarter of 2026 was $1.8 billion, an increase of $612 million, or 51%, from the year-ago quarter.
Results of operations: noninterest expenses · Filed 28/07/2026
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.
Results of operations: acquisition-related expenses · Filed 28/07/2026
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.
Credit risk: nonperforming assets and acquired versus additional nonaccrual loans · Filed 28/07/2026
75 | 2026 Proxy Statement Table of Contents Key Metrics EPS GAAP $1.39 ROTCE GAAP 15.7% Adjusted(1) 16.4% Loan Growth EOP $149.6 YoY 15.1% Deposit Growth EOP $176.6 YoY 8.7% Capital Growth (YoY) TBV/Share(1) 18.7% Adj.
2025 compensation performance highlights: EPS and tangible common equity returns · Filed 12/03/2026
CET 1(1)(2) 50 bps Credit Performance NCO Ratio 0.23% ACL Coverage 1.83% Highlights 2025 Key Messages: Delivering Value Creation • Focused execution is driving organic growth and proven expertise in integrating new partner banks • Revenue growth of 11% year-over-year(3) • Operating Leverage increased 73 bps (adj.
2025 compensation performance highlights: credit performance · Filed 12/03/2026
2026 Proxy Statement | 78 Table of Contents What We Do What We Don’t Do • Significant stock ownership policy applicable to executive officers and next level executives receiving equity awards to reinforce alignment between shareholders and senior management • Significant emphasis on performance-based compensation, with the majority dependent upon long-term performance • Balanced portfolio of metrics that drive annual and long-term goals in a risk appropriate manner • All incentive compensation, including vested and paid compensation, is subject to robust recoupment policies that allow us to recover certain vested or unvested incentive compensation in the event of inappropriate risk taking or a financial restatement • PSUs comprise 60% of total annual LTI grant value for CEO and 55% for other NEOs for 2025 • Annual equity-based awards made on a pre-established date to avoid any appearance of coordination with the release of material non-public information • Independent compensation consultant provides expert guidance and support to the HRCC • Shareholder engagement to exchange viewpoints with our investors • Annual assessment of compensation programs to compare them to those of our peers and market best practices • Limited perquisites representing a small component of compensation • Annual risk assessment of incentive compensation plans • No repricing of previously-granted stock options without shareholder approval • No perquisite or excise tax gross-ups upon change in control • No single-trigger vesting of equity awards upon change in control • No hedging or pledging of Huntington securities by executives or Directors • No dividend or dividend equivalents paid on equity grants prior to vesting • No incentive plans encourage excessive risk-taking Compensation of Executive Officers: Key Compensation and Governance Practices Key Compensation and Governance Practices The foundation of our executive compensation program is a philosophy of maintaining responsible governance and practices that align the interests of our executives with those of our shareholders.
Executive compensation: existing 2025 compensation and governance practices · Filed 12/03/2026
Adjustments for Extraordinary Events In determining whether a performance goal has been met, the HRCC may include or exclude “Extraordinary Events,” as defined in the MIP, or any other objective events or occurrences, in either establishing the performance goal based on the qualifying performance criteria or in determining whether the performance goal has been achieved; provided, however, that the HRCC retains the discretion to adjust awards upward or downward based on the HRCC’s evaluation of such events or other factors.
Annual incentives: committee discretion over extraordinary events and awards · Filed 12/03/2026
At the end of 2025, our Board consisted of 12 directors, comprised of our Chairman/President/CEO of Huntington Bancshares Incorporated and President/CEO of Huntington National Bank, our Huntington National Bank Chairman, and 10 independent directors.
Governance: board composition at year-end 2025 · Filed 13/02/2026
Our Board has unfettered access to senior executive officers, and the Board and committees regularly meet in executive session without management present.
Risk governance: board access and executive sessions · Filed 13/02/2026
Report of the Audit Committee The primary responsibility of the Audit Committee, which is comprised entirely of independent Directors, is to oversee the integrity of Huntington’s consolidated financial statements.
Audit committee report: independent membership · Filed 12/03/2026
The increase was primarily driven by the equity issued in the Veritex acquisition, earnings, net of dividends, an improvement in accumulated other comprehensive income driven by changes in interest rates, and the issuance of $741 million of perpetual preferred stock during 2025.
Capital: acquisition equity, retained earnings, AOCI and preferred issuance · Filed 13/02/2026
The table below presents information with respect to purchases made by or on behalf of the Company or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")), for each of the three months in the period ended June 30, 2026: (dollars in millions, except per share data, shares in thousands) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value that may yet be Purchased Under the Plans or Programs (1) April 1, 2026 to April 30, 2026 (2) 6,642 $16.46 6,642 $3,000 May 1, 2026 to May 31, 2026 3,121 16.01 3,121 2,950 June 1, 2026 to June 30, 2026 — — — 2,950 Total 9,763 $16.32 9,763 (1)The number shown represents, as of the end of each period, the approximate dollar value of Common Stock that may yet be purchased under publicly- announced share repurchase authorizations.
Issuer purchases: actual second-quarter 2026 common share repurchases · Filed 28/07/2026
During the first six months of 2026, the Bank paid common dividends to the parent company of $550 million.
Parent liquidity: bank-to-parent dividends · Filed 28/07/2026
The Federal Reserve informed Huntington that, effective October 1, 2025, its SCB requirement associated with its 2025 Capital Plan is the prescribed minimum SCB of 2.5%, the same SCB requirement Huntington received in 2024.
Regulation: stress capital buffer effective October 2025 · Filed 13/02/2026
Huntington issues shares to fulfill share-based award vesting from available authorized common shares.
Share-based compensation: issuance to fulfill vested awards · Filed 13/02/2026
In particular, if we experience an outflow of deposits as a result of our customers seeking investments with higher yields or greater financial stability, or a desire to do business with our competitors, we may be forced to rely more heavily on borrowings and other sources of funding to operate our business and meet withdrawal demands, thereby adversely affecting our net interest margin.
Competition risk: potential deposit substitution and funding consequences · Filed 13/02/2026
Our quarterly results reflect continued strong execution, supported by growth in our legacy organization and the successful integrations of Cadence and Veritex.
Executive overview: management assessment of acquisition integration · Filed 28/07/2026
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.
Results of operations: first-half noninterest income including acquisitions · Filed 28/07/2026
Publication history
| Version | Updated | Competitive advantage |
|---|---|---|
| 4 | 18/10/2026 | none |
| 3 | 18/10/2026 | none |
| 2 | 18/10/2026 | uncertain |
| 1 | 18/10/2026 | Unavailable |
Sources
Research methodology and limitations · What is an economic moat?