Huntington Bancshares Incorporated (HBAN)

The base case reflects orderly post-merger integration of Cadence and Veritex following the completion of the core systems conversion in mid-June 2026. Earning asset scale drives net interest income expansion, while fee platforms in payments, wealth management, and capital markets deliver steady growth. Synergies reduce operating expense intensity, allowing operating margins to normalize from 36.5% toward 40.5% by FY2029. Credit losses remain contained near historical norms with net charge-offs averaging 0.25%-0.30%, supporting disciplined capital distribution via dividends and opportunistic share buybacks.

• House forecast EPS expands from $1.69 in FY2026 to $1.77 in FY2027 and $2.08 by FY2030
• Operating margin expands from 36.5% in FY2026 to 40.5% in FY2029-FY2030 as integration synergies materialize
• Cost of equity remains moderate at 8.468% with a 10.0x terminal P/E multiple
• Reinvestment rate maintained at 8.0% of NOPAT with an effective tax rate of 18.1%