HUNTINGTON BANCSHARES INC /MD/

Liquidity risk is the possibility of us being unable to meet current and future financial obligations in a timely

manner. The goal of liquidity management is to ensure adequate, stable, reliable, and cost-effective sources of funds

to satisfy changes in loan and lease demand, unexpected levels of deposit withdrawals, investment opportunities,

and other contractual obligations. We consider core earnings, strong capital ratios, and credit quality essential for

maintaining high credit ratings, which allow us cost-effective access to market-based liquidity. We mitigate liquidity

risk by maintaining a large, stable customer deposit base and a diversified base of readily available wholesale

funding sources, including secured funding sources from the FHLB and FRB through pledged borrowing capacity,

issuance through dealers in the capital markets, and access to deposits issued through brokers. We further mitigate

liquidity risk by maintaining liquid assets in the form of cash and cash equivalents and securities.

The Board of Directors is responsible for establishing an acceptable level of liquidity risk at Huntington, including

approval of the liquidity risk appetite at least annually. The liquidity risk appetite includes liquidity risk metrics that

are designed and monitored to ensure Huntington maintains adequate liquidity to meet current and future funding

needs, including during periods of potential stress. The Board receives and reviews information on at least a semi-

annual basis to ensure Huntington is operating in accordance with its established risk tolerance. Further, the ALCO is

appointed by the ROC to oversee liquidity risk management, including the establishment of liquidity risk policies and

additional liquidity risk metrics and limits to support our overall liquidity risk appetite. Liquidity risk appetite metrics

are monitored by senior management daily and are reported to the Board at least semi-annually and to ROC on a

more frequent basis.

Liquidity risk is reviewed and managed continuously for the Bank and the parent company, as well as its

subsidiaries. In addition, liquidity working groups meet regularly to identify and monitor liquidity positions, provide

policy guidance, review funding strategies, and oversee the adherence to, and maintenance of, contingency funding

plans. At September 30, 2026, management believes current sources of liquidity are sufficient to meet Huntington’s

on- and off-balance sheet obligations over the next 12 months and for the foreseeable future.

2026 3Q Form 10-Q 25

We maintain a contingency funding plan that provides for liquidity stress testing, which assesses the potential

erosion of funds in the event of an institution-specific event or systemic financial market crisis. Examples of

institution specific events could include a downgrade in our public credit rating by a rating agency, a large charge to

earnings, declines in profitability or other financial measures, declines in liquidity sources including reductions in

deposit balances or access to contingent funding sources, or a significant merger or acquisition. Examples of

systemic events unrelated to us that could have an effect on our access to liquidity would be terrorism or war,

natural disasters, political events, failure of a major financial institution, or the default or bankruptcy of a major

corporation, mutual fund, or hedge fund. Similarly, market speculation or rumors about us, or the banking industry

in general, may adversely affect the cost and availability of normal funding sources. The contingency funding plan,

which is reviewed and approved by the ROC at least annually, outlines the process for addressing a liquidity crisis

and provides for an evaluation of funding sources under various market conditions. It also assigns specific roles and

responsibilities and communication protocols for effectively managing liquidity through a problem period and

outlines early warning indicators that are used to monitor emerging liquidity stress events.

Deposits

Our largest source of liquidity on a consolidated basis is customer deposits, which provide stable and lower-cost

funding. Our customer deposits come from a base of primary bank customer relationships, and we continue to focus

on acquiring and deepening those relationships, resulting in a diversified deposit base. Total deposits were$224.7

billion at September 30, 2026, compared to$176.6 billion at December 31, 2025. The$48.1 billion, or 27%, increase

in total deposits, compared to December 31, 2025, was primarily driven by$43.5 billion of deposits acquired in the

Cadence acquisition, in addition to organic deposit growth. Total deposits included$5.1 billion of brokered deposits

primarily consisting of brokered money market and time deposit balances at September 30, 2026, compared to$5.9

billion at December 31, 2025. The level of brokered deposits was below our established liquidity risk metric limits at

September 30, 2026.

Insured deposits comprised approximately 68% and 70% of our total deposits at September 30, 2026 and

December 31, 2025, respectively. The composition of our deposits is presented in the table below.

(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. As of September 30, 2026, the Bank Call Report

estimated uninsured deposit balance was$75.9 billion, which includes$4.3 billion of inter-company deposits. As of December 31, 2025, the Bank Call

Report estimated uninsured deposit balance was$56.9 billion, which includes$4.1 billion of inter-company deposits.

Wholesale Funding

Sources of wholesale funding include non-customer brokered deposits, short-term borrowings, and long-term

debt. Our wholesale funding totaled$28.5 billion at September 30, 2026, anincrease of$4.1 billion compared to

$24.4 billion at December 31, 2025. Theincrease from year end was primarily due to a$4.8 billion increase in short-

term borrowings, primarily comprised of short-term FHLB advances, and $1.8 billion of senior and subordinated debt

issuances, partially offset by maturities and repayments.

26 Huntington Bancshares Incorporated

Cash and Cash Equivalents and Investment Securities

Cash and cash equivalents were$16.8 billion and$13.5 billion at September 30, 2026 and December 31, 2025,

respectively. The$3.3 billion increase in cash and cash equivalents was largely due to higher interest-earning

deposits held at the FRB as part of prudent liquidity risk management to support our strong liquidity position.

Our investment securities portfolio is evaluated under established ALCO objectives. Changing market conditions

could affect the profitability of the portfolio, as well as the level of interest rate risk exposure.

Total investment securities, comprised of AFS and HTM securities, were$49.4 billion at September 30, 2026,

compared to$41.4 billion at December 31, 2025. The$8.0 billion increase in investment securities, compared to

December 31, 2025, was largely driven by$9.0 billion of investment securities acquired in the Cadence transaction.

At September 30, 2026, the duration of the investment securities portfolio, net of hedging, was 3.3 years. Securities

are pledged to secure borrowing capacity with the FHLB and the FRB, discussed further in the Bank Liquidity and

Sources of Funding section below.

Bank Liquidity and Sources of Funding

Our primary source of funding for the Bank is customer deposits. At September 30, 2026, customer deposits

funded 76% of total assets (115% of total loans and leases). To the extent we are unable to obtain sufficient liquidity

through customer deposits, cash and cash equivalents, and investment securities, we may meet our liquidity needs

through wholesale funding and asset securitization or sale. Additionally, the Bank may also access funding through

intercompany notes or parent company deposits placed at the Bank.

The Bank maintains borrowing capacity at both the FHLB and the FRB secured by pledged loans and securities.

While the Bank does not consider borrowing capacity at the FRB a primary source of funding, it could be used as a

potential source of liquidity in a stressed environment or during a market disruption. The amount of available

contingent borrowing capacity may fluctuate based on the level of borrowings outstanding and level of assets

pledged.

A summary of the Bank’s selected contingent liquidity sources is presented in the following table.

As of September 30, 2026, we believe the Bank has sufficient liquidity and capital resources to meet its cash flow

obligations over the next 12 months and for the foreseeable future.

Parent Company Liquidity

The parent company’s primary financial obligations consist of dividends to shareholders, debt service, income

taxes, operating expenses, funding of nonbank subsidiaries, repurchases of our stock, and acquisitions. The parent

company obtains funding to meet obligations from dividends and interest received from the Bank, interest and

dividends received from direct subsidiaries, net taxes collected from subsidiaries included in the federal consolidated

tax return, fees for services provided to subsidiaries, and the issuance of debt and equity instruments.

The parent company had cash and cash equivalents of$3.9 billion and$3.6 billion at September 30, 2026 and

December 31, 2025, respectively.

2026 3Q Form 10-Q 27

On October 21, 2026, our Board of Directors declared a quarterly cash dividend on our common stock of$0.155

per common share, payable on January 4, 2027 to shareholders of record on December 18, 2026. Additionally, on

October 21, 2026, our Board of Directors declared quarterly dividends on our Series B, F, G, H, J, and K preferred

stock, payable on January 15, 2027 to shareholders of record on January 1, 2027, and a quarterly dividend on our

Series L preferred stock, payable on February 19, 2027 to shareholders of record on February 4, 2027. On

September 14, 2026, our Board of Directors declared a quarterly dividend on our Series I preferred stock, payable on

December 1, 2026 to shareholders of record on November 15, 2026. Current quarterly dividend declarations are

expected to total approximately$353 million.

During the first nine months of 2026, the Bank paid common dividends to the parent company of$1.1 billion.

During the first quarter of 2026, the Bank redeemed all of its preferred stock outstanding that had previously been

held by the parent company. To meet any additional liquidity needs, the parent company may issue debt or equity

securities. To support the parent company’s ability to issue debt or equity securities, we have filed an automatic

shelf registration statement with the SEC covering an indeterminate amount or number of securities to be offered or

sold from time to time as authorized by Huntington’s Board of Directors.

As of September 30, 2026, we believe the Company has sufficient liquidity and capital resources to meet its cash

flow obligations over the next 12 months and for the foreseeable future.

Credit Ratings

Credit ratings represent evaluations by rating agencies based on a number of factors, including financial strength

and the ability to generate earnings, as well as factors not entirely within our control, including conditions affecting

the financial services industry, the economy, and changes in rating methodologies. Credit ratings are subject to

change at any time. Our credit ratings impact our availability and cost of financing, as well as collateral requirements

for certain derivative instruments and deposit products. A downgrade to our credit ratings could adversely affect our

access to capital, increase our cost of funds, or trigger additional collateral or funding requirements.

The following table presents our credit ratings and rating agency outlooks.

NR - Not Rated

(1)Standard & Poor’s does not provide a depositor rating. The Bank’s long-term issuer credit rating is A- and its short-term issuer credit rating is A-2.

(2)In September 2026, Fitch Ratings lowered the Company's senior unsecured debt rating to BBB+ and subordinated debt rating to BBB. Fitch indicated that

the action reflected the application of its methodology for institutions expected to be subject to Category III regulatory standards and did not reflect a

change in its assessment of the Company's underlying credit profile.

Contractual Obligations and Commitments

In the normal course of business, we enter into various contractual obligations and commitments that could

impact our liquidity and capital resources. These arrangements include commitments to extend credit, interest rate

swaps, floors, financial guarantees contained in standby letters-of-credit issued by the Bank, commitments by the

Bank to sell mortgage loans, operating lease payments, and other purchase and marketing obligations.

28 Huntington Bancshares Incorporated