HUNTINGTON BANCSHARES INC MD

Reporting Update

During the fourth quarter of 2024, we updated the presentation of our reported deposit categories to align more closely with how we strategically manage our business. As a result, we now report our deposit composition in the following categories: (1) demand deposits - noninterest bearing, (2) demand deposits - interest bearing, (3) money market, (4) savings, and (5) time deposits. Prior period results have been adjusted to conform to the current presentation.

2025 1Q Form 10-Q 5

Financial Performance Review

Selected Financial Data

(1)Net income applicable to common shares excluding expense for amortization of intangibles for the period divided by average tangible common shareholders’ equity. 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)On an FTE basis 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.

6 Huntington Bancshares Incorporated

Summary of 2025 First Quarter Results Compared to 2024 First Quarter

For the first quarter of 2025, we reported net income of $527 million, or $0.34 per diluted common share, compared with $419 million, or $0.26 per diluted common share, in the year-ago quarter. The first quarter of 2025 reported net income was negatively impacted by $3 million, or $2 million after tax, of expense attributable to the FDIC DIF special assessment. The year-ago quarter reported net income was negatively impacted by additional expense attributable to the FDIC DIF special assessment totaling $32 million, or $25 million after tax ($0.02 per common share), and $7 million, or $5 million after tax, of expense from staffing efficiencies.

Net interest income was $1.4 billion for the first quarter of 2025, an increase of $139 million, or 11%, from the year-ago quarter. FTE net interest income, a non-GAAP financial measure, increased $141 million, or 11%, from the year-ago quarter. The increase in FTE net interest income primarily reflected a $14.5 billion, or 8%, increase in average earning assets and a 9 basis point increase in the FTE NIM to 3.10%, partially offset by a $15.1 billion, or 11%, increase in average interest-bearing liabilities. The NIM increase was primarily due to a decrease in cost of funding, the impact of hedging, and the benefit of higher interest recoveries and other activity, partially offset by a decrease in yields on interest earning assets.

The provision for credit losses increased $8 million, or 7%, from the year-ago quarter to $115 million in the first quarter of 2025. The ACL increased $63 million from the year-ago quarter to $2.5 billion, or 1.87% of total loans and leases, in the first quarter of 2025, compared to $2.4 billion, or 1.97% of total loans and leases, for the year-ago quarter.

Noninterest income was $494 million, an increase of $27 million, or 6%, from the year-ago quarter, primarily due to increases in wealth and asset management revenue and capital markets and advisory fees. Noninterest expense was $1.2 billion, an increase of $15 million, or 1%, from the year-ago quarter, primarily due to higher personnel costs that were partially offset by lower deposit and other insurance expense.

Consolidated Balance Sheet and Capital Ratios as of March 31, 2025 Compared to Prior Year End

Total assets at March 31, 2025 were $209.6 billion, an increase of $5.4 billion, or 3%, compared to December 31, 2024. The increase in total assets was primarily driven by increases in interest-earning deposits with banks of $2.7 billion, or 23%, and loans and leases of $2.5 billion, or 2%. Total liabilities at March 31, 2025 were $189.1 billion, an increase of $4.7 billion, or 3%, compared to December 31, 2024. The increase in total liabilities was primarily driven by increases in total deposits of $2.9 billion, or 2%, and long-term debt of $1.7 billion, or 11%.

The tangible common equity to tangible assets ratio increased to 6.3% at March 31, 2025, compared to 6.1% at December 31, 2024, primarily due to an improvement in AOCI driven by changes in interest rates, and an increase in tangible common equity from current period earnings, net of dividends, partially offset by an increase in tangible assets. The CET1 risk-based capital ratio was 10.6% at March 31, 2025, compared to 10.5% at December 31, 2024. The increase in our CET1 risk-based capital ratio was primarily due to current period earnings, net of dividends, partially offset by the CECL transition adjustment and an increase in risk-weighted assets. The increase in risk-weighted assets was driven by loan growth, partially offset by the impact of a first quarter 2025 CLN transaction.

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.

2025 1Q Form 10-Q 7

Our quarterly results reflect continued execution of our growth strategy and leveraging the strength of our balance sheet, highlighted by growth in loan and deposit balances, expansion of our net interest income, and continued strong performance in fee revenue. We have continued our disciplined approach to managing credit quality consistent with our aggregate moderate-to-low risk appetite. We remain focused on delivering profitable growth and driving value for our shareholders and believe Huntington is well positioned to manage through the evolving economic outlook.

Economy

We are entering a period of heightened economic uncertainty as markets have been adjusting to changes in tariff policies. Through the 2025 first quarter, the Federal Reserve has held rates steady as inflation remains above its 2% target. Tariffs have the potential to increase inflation, and it is unknown if that would be a transitory or longer lasting impact. On the national employment side, the data has held up well, although unemployment has ticked up modestly to 4.2%. Federal Reserve speakers, including Chairman Powell, have stated they can be patient at current inflation and unemployment levels to see how policy changes start to impact the data.

Economic data remains mixed. Manufacturing continues to contract while the services sector expands, albeit at a slower pace than the previous two quarters. U.S. consumer spending appears to be slowing down. Focusing on backwards looking data, there are signs of a slowdown. Coupling that with forward looking expectations based on the uncertainty from tariffs, more economists are expecting the U.S. to enter a recession in the back half of 2025. The severity of the recession is likely dependent on tariff rates and a potential trade war escalation.

Other Recent Developments

On April 17, 2025, the Federal Reserve issued a notice of proposed rulemaking to amend its capital planning and stress testing framework applicable to large banking organizations, including Huntington. The proposal would average stress test results over two consecutive years to reduce volatility in the SCB requirement that results from the stress test. The proposal would also modify the annual effective date of the SCB requirement from October 1 to January 1 of the following year to provide banking organizations with additional time to incorporate the results of the stress test into capital planning and management. We are in the process of evaluating this proposed rulemaking and assessing its potential impact on the Company if adopted as proposed.