HUNTINGTON BANCSHARES INC /MD/

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.

32 Huntington Bancshares Incorporated

Net Income (Loss) by Business Segment

Net income (loss) by business segment is presented in the following table.

Consumer & Regional Banking net income was$1.5 billion in thenine-month period of 2026, an increase of$496

million, or 50%, compared to the year-ago period. Segment net interest income increased $1.3 billion, or 42%,

primarily due to a$27.9 billion, or 38%, increase in average loans and leases, which includes the Cadence and

Veritex acquisitions, and a 23 basis point increase in NIM. Provision for credit losses decreased$37 million due to

changes in the loan portfolio, partially offset by higher net charge-offs and loan growth. Noninterest income

increased $226 million, or 21%, primarily due to the impact of the Cadence and Veritex acquisitions, as well as

growth incustomer deposit fee income, wealth and asset management revenue, and payments and cash

management revenue. Noninterest expense increased $891 million, or 36%, primarily due to incremental expenses

associated with the Cadence and Veritex acquisitions, along with higher indirect expense allocations and personnel

costs.

2026 3Q Form 10-Q 33

Commercial Banking netincome was$1.1 billion in the first nine-month period of 2026, an increase of$223

million, or 25%, compared to the year-ago period. Segment net interest income increased $501 million, or 32%,

primarily driven by a$22.8 billion, or 38%, increase in average loans and leases, partially offset by a$17.2 billion, or

39%, 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$109 million

primarily due to loan and lease growth. Noninterest income increased $226 million, or 41%, 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 and payment and cash management revenue were also higher. Noninterest expense increased $339

million, or 36%, 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.

34 Huntington Bancshares Incorporated

Treasury / Other had a netloss of$639 million in the first nine-month period of 2026, compared to a net loss of

$199 million inthe year-ago period, driven by acquisition-related expenses, an increase in net interest loss, 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$144 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$91 million primarily due to an increase in pre-tax loss.