HUNTINGTON BANCSHARES INC /MD/

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.

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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 port folio segment.

At September 30, 2026, our loans and leases totaled$191.4 billion, representing a$41.8 billion, or 28%, 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.

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 September 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.

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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.

(1)Amounts include$4.4 billion and$4.3 billion of auto dealer services loans at September 30, 2026 and December 31, 2025, respectively.

The following tables present our commercial real estate portfolio by property type and geographic location.

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(1)Geographic location based on location of underlying collateral.

Our CRE portfolio totaled$22.7 billion at September 30, 2026, anincrease of$7.5 billion, or 50%, compared to

December 31, 2025, driven by$9.4 billion of acquired Cadence loans, partially offset by paydowns. The CRE portfolio

had an associated allowance coverage of 3.9% and 3.7% at September 30, 2026 and December 31, 2025,

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.

NALs and NPAs

The following table presents the details of our NALs and NPAs.

(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.

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NPAs totaled$1.7 billion at September 30, 2026, a year-to-date increase of$777 million, with the increase

primarily due to acquired NPAs and additional broad-based increases in commercial and industrial, residential

mortgage, and commercial real estate NALs. NALs at September 30, 2026 were not concentrated in any industry or

region.

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.

The baseline economic forecast used as part of estimating the ACL at September 30, 2026 reflected a modest

softening in the labor market and slowing economic growth. Under this scenario, the unemployment rate is

expected to gradually increase over the next year to 4.7%, while GDP growth is expected to moderate through the

remainder of 2026, not exceeding 2% until the fourth quarter of 2027. These economic expectations, together with

portfolio-specific performance trends and other qualitative factors, were incorporated into the Company’s estimate

of expected credit losses.

The table below shows the forecasted path of unemployment and GDP in the baseline economic scenario

compared to the end of 2025.

(1)Values reflect the baseline scenario forecast inputs for each period presented, not updated for subsequent actual amounts.

Management 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.

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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 September 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 September 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.

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.

(1)Percentages represent the percentage of each loan and lease category to total loans and leases.

The ACL coverage ratio was 1.75% at September 30, 2026, compared to 1.83% at December 31, 2025, with the

decrease largely driven by portfolio mix changes associated with acquired and organic loan growth and changes in

economic assumptions incorporated into the ACL estimate relative to year-end. The ACL coverage ratio at

September 30, 2026 is reflectiveof the current macroeconomic forecast and changes in various risk profiles

intended to capture uncertainty not addressed within the quantitative reserve.

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NCOs

The table below reflects NCO detail.

(1)Net charge-offs for thenine months ended September 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$146 million, or 0.31% of average total loans and leases on an annualized basis, in thethird quarter

of 2026, compared to$75 million, or 0.22%, in the year-ago quarter, with theincrease reflecting higher net charge-

offs in both the commercial and consumer loan portfolios.

NCOs were$376 million, or 0.27% of average total loans and leases on an annualized basis, for thenine-month

period ended September 30, 2026, compared to$227 million, or 0.23%, for the year-ago period, with theincrease

also reflecting higher net charge-offs in both the commercial and consumer loan portfolios.

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