Huntington Bancshares Incorporated (HBAN): Business Model Canvas [Dec-2025 Updated]

You're trying to map out exactly how a major regional bank is positioning itself for the next phase of growth, and honestly, the strategy at Huntington Bancshares Incorporated is aggressive. It's not just about managing their $223 billion asset base; it's about using recent acquisitions like Veritex and Cadence to pivot hard into the Southern U.S. market while keeping core consumer trust with features like 24-Hour Grace. With the bank guiding for 10% to 11% Net Interest Income growth this year, the market sees the potential, so let's cut through the noise and look at the nine building blocks of their business model to see where the real value-and the integration challenges-are hiding below.

Huntington Bancshares Incorporated (HBAN) - Canvas Business Model: Key Partnerships

You're looking at how Huntington Bancshares Incorporated is aggressively building out its footprint through strategic alliances and acquisitions as of late 2025. These aren't just handshake deals; they are multi-billion dollar moves designed to shift the bank's center of gravity south and west.

Veritex Holdings, Inc. for Texas Market Expansion

Huntington Bancshares Incorporated completed the acquisition of Veritex Holdings, Inc. effective October 20, 2025. This deal was valued at an aggregate transaction value of $1.9 billion, structured as a 100% stock transaction with an exchange ratio of 1.95 shares of Huntington Common Stock for each share of Veritex Common Stock. As of March 31, 2025, Veritex brought approximately $13 billion in assets, $9 billion in loans, and $11 billion in deposits into the combined entity. Following the merger, former holders of Veritex common stock are estimated to own approximately 7% of the combined company, solidifying Huntington Bancshares Incorporated's presence in the dynamic Texas economy. Malcolm Holland, Veritex's Chairman, President and CEO, joined Huntington in a non-executive role as Chairman of Texas. This deal was expected to be modestly accretive to Huntington's earnings per share, neutral to regulatory capital at close, with payback in approximately one year inclusive of merger expenses and CECL double count.

Cadence Bank for Southern U.S. Presence

The definitive agreement to acquire Cadence Bank was announced on October 27, 2025. The aggregate transaction value implied was $39.77 per Cadence share based on Huntington's closing price of $16.07 as of October 24, 2025, totaling $7.4 billion in a 100% stock transaction. Cadence Bank, a $53 billion regional bank, adds more than 390 locations across Texas and the South. Post-close, Huntington Bancshares Incorporated expects to have total assets of $276 billion and total deposits of $220 billion. This partnership is projected to make Huntington the number one bank in Mississippi and a top ten bank in both Alabama and Arkansas by deposits. The transaction is expected to be 10% accretive to Huntington's earnings per share and 7% dilutive to tangible book value per share, with an earn-back period of three years inclusive of merger expenses. Brand conversion is targeted for the second quarter of 2026.

You can see the scale of these two major moves here:

Eldridge for Private Credit Offerings to Commercial Bank Clients

While Fifth Third Bancorp announced a partnership with Eldridge Capital Management in late July 2025 to offer private credit to its Commercial Bank clients, specific financial details of a direct, confirmed Huntington Bancshares Incorporated partnership with Eldridge for this purpose aren't public as of this writing. However, Huntington Bancshares Incorporated is clearly focused on building out its high-net-worth and wealth management services, which is where such a partnership would fit. As of the first quarter of 2025, Huntington's Private Bank segment reported:

• $34.0B Assets Under Management (AUM)
• $17.3B in Deposits
• $5.3B in Loans

National Specialty Finance Channels for Dealer Financing

Huntington Bancshares Incorporated utilizes national specialty finance channels to support its dealer financing activities across its expanded footprint. Specific dollar amounts or the exact number of these channel partners are not detailed in the latest public filings, but this network is crucial for distributing auto and equipment financing products efficiently outside of the core branch network. This is how you scale a national product line without building a branch on every corner. It's a necessary piece of the puzzle for national reach.

Cleveland Browns and Other Regional Sports Franchises for Brand Awareness

The partnership with the Cleveland Browns is a high-profile, long-term investment in brand visibility. The agreement includes naming rights for the team's stadium, which is now called Huntington Bank Field, under a 20-year agreement announced in September 2024. This deal extends to a potential new stadium as well. Furthermore, the community aspect is active; in December 2025, Huntington National Bank matched the Browns' gift donation for their annual Giving Tree, resulting in nearly 1,000 gifts provided to children in Cuyahoga County. Huntington also holds naming rights for Huntington Park, home of the Columbus Clippers (Triple-A affiliate of the Cleveland Guardians), and the University of Minnesota's football stadium.

• Stadium Naming Rights Term: 20 years
• Gifts Provided (Dec 2025): Nearly 1,000 combined with the Browns
• Other Sports Naming Rights: Huntington Park (Columbus Clippers) and University of Minnesota football stadium.

Finance: draft 13-week cash view by Friday.

Huntington Bancshares Incorporated (HBAN) - Canvas Business Model: Key Activities

You're looking at the core engine of Huntington Bancshares Incorporated as of late 2025, right after closing the Veritex deal and with the Cadence acquisition on the immediate horizon. The key activities are all about deploying capital, integrating new scale, and driving revenue through both traditional banking and specialized services. Here's the breakdown of what they're actively doing.

Core commercial and consumer lending and deposit-taking

This is the bread and butter, and the numbers show they're winning against peers. As of the third quarter of 2025, average total loans stood at $135.9 Billion, reflecting a year-over-year growth of 9%. That growth is outpacing the peer median of just 0.8% cumulatively. You see this strength across the board, with average commercial loans up 12% year-over-year, driven heavily by commercial and industrial loans increasing by 18%. On the funding side, average total deposits were $131.5 Billion in Q3 2025, a 5% increase from the year-ago quarter. Honestly, their deposit gathering, at a cumulative 6.4% growth, is also running well ahead of the peer median of 0.2%. The bank's funding base is solid, with total deposits reaching $165.212 Billion at September 30, 2025, funding about 75% of total assets as of March 31, 2025.

Here's a quick look at the loan and deposit momentum:

Integrating recent acquisitions (Veritex, Cadence) for synergy realization

The activity here is twofold: closing the immediate deal and setting up the next big one. Huntington closed the $1.9 Billion all-stock merger with Veritex Holdings, Inc. on October 20, 2025. Management stated this integration is expected to generate about $20 Million in core pre-provision net revenue benefits in the fourth quarter of 2025. They project an efficiency ratio improvement of around 1 percentage point for 2025 from this deal alone. Meanwhile, they agreed to buy Cadence Bank for $7.4 Billion in an all-stock deal, expected to close in the first quarter of 2026. The combined entity post-Cadence is projected to hold $276 Billion in assets and $220 Billion in deposits. The Cadence deal is specifically targeted to boost earnings per share by about 10%.

Developing and deploying digital banking and payment solutions

This activity supports the growth in fee revenue and customer relationships. While specific digital spend isn't detailed here, the results of these efforts are visible in the noninterest income growth. The bank is focused on driving sustained deposit gathering through a disciplined framework, which includes their digitally powered solutions like Early Pay and Money Scout. The focus is on growing households and deepening primary bank relationships.

Managing a $223 billion asset portfolio and associated risk

Managing the balance sheet is a primary activity, especially with the scale achieved post-Veritex. The combined company holds nearly $223 Billion in assets as of late 2025. Risk management is paramount, and credit quality remains tight. Net charge-offs were low at 0.22% of average total loans and leases for Q3 2025. The Allowance for Credit Losses (ACL) stood at $2.6 Billion, representing 1.86% of total loans and leases at quarter end. Capital strength is maintained, with the Common Equity Tier 1 (CET1) ratio ending Q3 2025 at 10.6%, and the Tangible Common Equity (TCE) ratio at 6.8%. You've got to keep an eye on the investment securities portfolio duration, which was 3.8 years, net of hedging, at March 31, 2025, as they use derivatives to manage interest rate risk.

Expanding fee-based services like wealth management and capital markets

Fee income is a key lever for profitability, and they are actively growing these segments. Noninterest income for the third quarter of 2025 hit $628 Million, a jump of 33% from the previous quarter. This growth is fueled by specific fee streams:

• Customer deposit and loan fees grew sequentially by 19%, or about $16 Million.
• Wealth and asset management revenue increased by 12% sequentially, or roughly $11 Million, due to higher trust and investment management income.
• The bank also has capital markets activities, including debt and equity issuance, and advisory services, which contribute to the overall noninterest income.

The full-year 2025 outlook for Net Interest Income (NII) growth was raised to 10% to 11%, partly due to the expected boost from the Veritex deal and stronger loan growth, which is projected to be between 9% and 9.5% for the year, inclusive of Veritex.

Huntington Bancshares Incorporated (HBAN) - Canvas Business Model: Key Resources

You're looking at the core assets Huntington Bancshares Incorporated relies on to execute its business strategy as of late 2025. These aren't just line items; they are the tangible and intangible engines driving their operations across the Midwest and into new markets.

The foundation of Huntington Bancshares Incorporated's operational capacity rests on a significant balance sheet size. As of the third quarter ending September 30, 2025, the company reported total assets of $210.228 billion. This scale allows for substantial lending capacity and operational stability, which is critical in the regional banking sector.

Capital strength is another non-negotiable resource for any bank. Huntington Bancshares Incorporated maintained a strong capital base, reporting a Common Equity Tier 1 (CET1) risk-based capital ratio of 10.5% at June 30, 2025. This metric shows they hold a solid cushion of high-quality capital relative to their risk-weighted assets, exceeding well-capitalized standards. The Tangible Common Equity (TCE) ratio was 6.6% at that same date.

The physical and digital infrastructure forms the delivery backbone. Huntington operates a vast network to reach its customer base. The physical footprint includes more than 1,000 branches operating across 14 states as of late 2025. This physical presence is complemented by proprietary digital platforms that customers use daily.

Here's a quick look at the scale of some key tangible resources:

• Total Assets (Q3 2025): $210.228 billion
• CET1 Ratio (Q2 2025): 10.5%
• Branch Network: More than 1,000
• States Served: 14
• Total Deposits (Q3 2025): $165.212 billion

The geographic resource base is anchored in the Midwest, but it's actively being extended. The bank's established deep local relationships in states like Ohio, Michigan, Indiana, and Pennsylvania provide a stable core. To support its strategy of expanding its Southern footprint, Huntington Bancshares Incorporated announced the combination with Texas-based Veritex Holdings, Inc. in July 2025, signaling a direct investment in the dynamic Texas market.

The intangible digital assets are crucial for modern banking efficiency. Huntington Bancshares Incorporated deploys several proprietary tools to serve and engage clients. These include platforms such as Money Scout and Huntington Heads Up. These digital capabilities are key to serving customers efficiently outside of the physical branch structure.

We can summarize the scale of the physical and capital resources in this table:

The bank also holds the distinction of being the largest originator of SBA 7(a) loans, which is a significant, though less quantifiable, resource in its commercial lending segment. That kind of market positioning doesn't happen by accident; it's built on expertise and process. Finance: draft 13-week cash view by Friday.

Huntington Bancshares Incorporated (HBAN) - Canvas Business Model: Value Propositions

Huntington Bancshares Incorporated provides a comprehensive suite of banking, payments, wealth management, and risk management products and services across 13 states. The third quarter of 2025 saw the company report net income of $629 million and earnings per common share (EPS) of $0.41.

24-Hour Grace on overdrafts to build customer trust

The 24-Hour Grace feature is a core component of the customer trust proposition. This allows a consumer checking customer who overdraws their account until midnight Central Time, the next business day, to make their balance positive and avoid overdraft fees or returns.

Comprehensive banking, payments, and wealth management suite

The offering spans full-service commercial and consumer deposit, lending, and other financial services. Key financial performance metrics from Q3 2025 underscore the scale of the operation:

Asterisk-Free Checking for simple, low-cost consumer banking

The Asterisk-Free Checking® account is positioned as straightforward banking with no hidden terms. This product carries no monthly maintenance fees and no minimum balance requirements. It is explicitly noted as not an interest-bearing account. This product is bundled with the 24-Hour Grace service.

Specialized commercial expertise for middle-market and corporate clients

Huntington Bancshares Incorporated supports business clients through specialized lending and advisory services. Growth in this segment is evident in the Q3 2025 figures:

• Average commercial loans grew $8.5 billion, or 12%, from the year-ago quarter.
• Average commercial and industrial loans specifically increased by $9.2 billion, or 18%, year-over-year.
• The bank achieved the #1 ranking as a non-captive regional lender in the 2025 J.D. Power U.S. Dealer Financing Satisfaction Study.

Digital tools like Standby Cash for quick liquidity access

Digital tools are designed to help customers manage money with confidence. Standby Cash® offers immediate, non-credit-checked liquidity to eligible consumers. The terms for this feature include:

• Instant access amounts ranging from $100 to $750.
• A fee of 5% cash advance fee applies.
• Alternatively, a 1% monthly interest charge, equating to a 12% APR, is charged if automatic payments are not set up.

Business checking accounts are not eligible for Standby Cash. Finance: draft 13-week cash view by Friday.

Huntington Bancshares Incorporated (HBAN) - Canvas Business Model: Customer Relationships

High-touch, local relationship management via branch network

• Huntington Bancshares Incorporated operates approximately 970 branches across 11 states as of early 2025.
• The bank is accelerating its expansion in the Carolinas, targeting the opening of approximately 55 retail branches over five years, aiming to complete this by 2027.
• As of April 2025, 37 of the 55 planned Carolina branches were under letter of intent for real estate development.
• In 2024, the expansion into new regions like North Carolina and South Carolina added approximately 80 new customer-facing bankers in the first year.
• The bank's formula emphasizes localized leadership and relationship-driven banking to carve out its niche in competitive markets.

Digital self-service and personalized alerts (Huntington Heads Up)

• As of early 2023, 66% of retail customers had adopted digital banking, defined as logging into online or mobile banking at least once in a 90-day period.
• Half of Huntington Bancshares Incorporated's new customers were acquired digitally.
• Digital tools include predictive money tools and comprehensive account alerts, which are part of the offering in 2025.
• The bank promotes pairing banker support with its intuitive mobile banking app.

Dedicated local Financial Advisors for wealth management clients

As of the February 2025 Investor Day presentation, the Wealth Management segment structure included:

Staffing within the Wealth Management organization included 415 Financial & Wealth Advisors and 90 Portfolio Managers & Financial Planners. Huntington Bancshares Incorporated projects wealth management to grow at a 10%+ CAGR.

Relationship pricing and bundled services for preferred banking

• The bank emphasizes its 'Fair Play' banking philosophy, which aligns with providing a complete set of products and services distinguished by local delivery and customer service.
• Fee revenue for Huntington Bancshares Incorporated achieved a record level, growing 10% year-over-year in 2024.
• New initiatives, which include expansion into new markets and specialty lending teams, contributed 39% of the full year 2024 loan growth.
• The Relationship Savings account is promoted by emphasizing access to neighborhood branches and helpful bankers as a primary value proposition.

Call centers for customer support and issue resolution

• Customer call centers are listed as one of the service channels used by the Consumer & Regional Banking segment, alongside branches, ATMs, and online/mobile banking.

Huntington Bancshares Incorporated (HBAN) - Canvas Business Model: Channels

You're looking at how Huntington Bancshares Incorporated actually gets its products and services-from checking accounts to specialized commercial loans-into the hands of its customers. It's a blend of old-school brick-and-mortar and modern digital tools, which is key for a bank of its size, especially as it navigates the post-2024 banking landscape.

The physical footprint remains substantial, even as digital adoption accelerates. Huntington National Bank serves customers across a footprint that includes Ohio, Michigan, Pennsylvania, Indiana, West Virginia, Kentucky, Colorado, Illinois, Minnesota, North Carolina, and Wisconsin, with some sources indicating operations across as many as 14 states. The bank is actively planning for physical growth, intending to launch roughly 55 retail branches within the next five years, starting from early 2025.

Here is a breakdown of the physical network based on the latest reported figures:

The bank also maintains an array of ATMs, with historical data pointing to more than 1,400 ATMs available to customers.

Digital channels are clearly a focus for deepening relationships. Huntington Bancshares Incorporated has been pushing its digital suite, which includes features like predictive money tools and a built-in budgeting calendar. The bank's strategy emphasizes converting digital interactions into tangible business. For instance, half of all new customers are acquired digitally.

The AI-driven feature, Marketplace, within the online and mobile platforms, shows concrete engagement metrics:

• 17% engagement rate among digitally active customers.
• Generated approximately 400,000 unique monthly visits.
• Attributed to 11% of total new account openings in Q4 2022.

For direct support, the bank relies on its customer call centers and digital chat support, which are part of the Customer Solution Center shared service unit. You can reach the conference line for investor updates at (877) 407-8029.

The Commercial and Specialty Banking sales force is expanding its national reach through specialized verticals. This expansion is supported by a commitment to hiring new talent. The bank intends to add more than 350 employees across various business divisions over the next five years, starting in 2025. This includes building out national capabilities in areas like the Financial Institutions Group and the Aerospace & Defense Group.

In terms of specialized lending, the channel strategy involves leveraging external relationships for national scale. For lease financing, for example, the portfolio utilizes:

• Origination partners.
• Third-party sources, including equipment manufacturers.
• Dealers or vendors set up under program structures.

These partnerships are specifically designed to generate transactions from a nationwide footprint.

Huntington Bancshares Incorporated (HBAN) - Canvas Business Model: Customer Segments

You're looking at how Huntington Bancshares Incorporated segments its client base to drive revenue across its two primary operating segments: Consumer & Regional Banking and Commercial Banking. Honestly, the segmentation is quite clear, focusing on the spectrum from individual households to large corporate entities.

Consumers (mass market to mass affluent)

This group is served through the Consumer & Regional Banking segment, which provides the core retail offerings. The growth here is steady; for instance, average consumer loans grew by 6% year-over-year as of the second quarter of 2025, which included a $2.1 billion or 16% increase in average automobile loans.

• The segment also includes mortgage banking and investment management services for this customer set.
• The mass affluent are increasingly served by the Wealth Management arm, which saw wealth fees increase by 12% year-over-year in the third quarter of 2025.

Small and middle-market businesses

These businesses fall primarily under the Commercial Banking umbrella, alongside larger clients. The focus on the middle-market is evident in the loan growth figures. Average commercial and industrial loans, a key indicator for this group, jumped by $7.7 billion, or 15%, year-over-year as of the second quarter of 2025.

Large corporations, municipalities, and government entities

These larger clients are also served by the Commercial Banking segment, receiving comprehensive product offerings like lending, liquidity, treasury management, and capital markets services. Overall, average commercial loans grew by $6.7 billion, or 10%, year-over-year in Q2 2025, showing broad strength across the commercial spectrum.

High & Ultra High Net Worth individuals (Private Bank)

This is a specialized, high-value group served by the Private Bank, which is part of the broader Wealth Management organization. As of early 2025, the Private Bank served approximately 10,000 Households with over $1 million in wealth, holding about $27.6 billion in Assets Under Management (AUM). For context, the bank had a target for its Private Bank to reach $11 billion in AUM by the end of 2025, though earlier figures suggest a much larger base.

• The segment is supported by 65 specialists in trust, investments, and advanced planning.
• 40% of the Private Bank AUM came from customers with $10 million-plus at Huntington Bancshares Incorporated as of February 2025.

Indirect auto and equipment dealer financing customers

This financing is a key component, often integrated within the Consumer and Commercial segments. For the indirect auto side, Huntington Bancshares Incorporated optimized its capital structure in the first quarter of 2025 by completing a credit linked note transaction related to an approximately $3.5 billion pool of on-balance sheet prime indirect auto loans. Equipment financing is handled through the Commercial Bank, with a positive outlook for industry growth in 2025.

Here's a quick look at the loan balances that define the scale of these segments as of mid-2025. Remember, commercial lending is the dominant portion of the loan book.

Huntington Bancshares Incorporated (HBAN) - Canvas Business Model: Cost Structure

You're looking at the hard costs Huntington Bancshares Incorporated faces to run its operations and fund its growth strategy as of late 2025. It's a mix of staffing, technology investment, funding costs, and setting aside reserves for potential loan losses, all while managing large-scale acquisitions.

Personnel Expenses and Branch Network

Significant costs are tied to the people supporting over 1,000 physical locations. For the three months ended September 30, 2025, Personnel costs totaled $757 million. This reflects the expense base for the staff across the network, which Huntington National Bank operated with 968 branches across 13 states as of early 2025. In the first quarter of 2025, personnel costs were up $39 million, or 6%, year-over-year, driven by higher incentive compensation and salary expense. Staffing efficiencies, which include severance, had a pretax impact of $7 million in the fourth quarter of 2024.

The key cost components related to personnel and operations for the quarter ending September 30, 2025, were:

Technology and Operations Costs

Digital transformation requires continuous spending, categorized broadly under technology and operations in segment reporting. For the three months ended September 30, 2025, the line item for Outside data processing and other services, which captures some of these technology expenses, was $198 million. This is a notable component of the total noninterest expense.

Interest Expense on Funding

The cost of funding assets through deposits and borrowings is a major variable cost. For the three months ended September 30, 2025, Total interest expense reached $1,094 million. This expense is heavily weighted toward customer balances:

• Deposits: $830 million
• Long-term debt: $251 million
• Short-term borrowings: $13 million

Compared to the first quarter of 2024, average interest-bearing liabilities increased by $15.1 billion, or 11%, in the first quarter of 2025, partially offsetting net interest margin expansion. Total deposit costs for Q1 2025 were reported at 2.03%.

Acquisition and Integration Costs

The aggressive M&A strategy introduces significant, non-recurring integration costs. The acquisition of Veritex Holdings, Inc. had an aggregate transaction value of $1.9 billion as of July 11, 2025. The subsequent agreement to acquire Cadence Bank is valued at approximately $7.4 billion. Huntington Bancshares Incorporated anticipates incurring $555 million in pre-tax merger-related expenses for the Cadence deal. The Cadence transaction is expected to be 7% dilutive to tangible book value per share with earn-back in three years inclusive of merger expenses. The Veritex deal was also expected to include merger expenses, leading to a slight dilution to tangible book value per share at close.

Allowance for Credit Losses (ACL)

Setting aside reserves against potential loan defaults is a critical expense line. The Allowance for credit losses (ACL) stood at $2.5 billion as of March 31, 2025, representing 1.87% of total loans and leases. This reserve increased by $32 million from the end of the prior quarter. By June 30, 2025, the ACL remained at $2.5 billion, having increased by $37 million from the prior quarter. The provision for credit losses for the three months ended September 30, 2025, was $122 million.

Finance: draft 13-week cash view by Friday.

Huntington Bancshares Incorporated (HBAN) - Canvas Business Model: Revenue Streams

You're looking at how Huntington Bancshares Incorporated actually brings in the money, which is the core of their business model right now. It's a mix of traditional banking interest and more diversified fee income, and the numbers show a clear push toward the latter.

The biggest piece, as expected for a major bank, is Net Interest Income (NII), which comes from the spread between what they earn on loans and securities and what they pay out on deposits. For the full-year 2025, Huntington Bancshares has guided for NII growth in the range of 10% to 11%, with the midpoint being 10.5% over the FY24 baseline of $5.398B. This implies a full-year NII target between $5.94B and $5.99B. To give you a recent snapshot, the Net Interest Income (FTE) for the second quarter of 2025 was $1,483 million, marking an 11.9% increase year-over-year.

Fee income is where Huntington Bancshares is actively trying to diversify, and the results from mid-2025 show that strategy is gaining traction. These noninterest income sources are key buffers when interest rate dynamics shift. Here's a breakdown of the key fee-based drivers based on recent quarterly performance:

• Wealth and Asset Management Fees: This segment saw a year-over-year increase of 13% in the second quarter of 2025. The actual revenue for this stream in Q2 2025 reached $102 million.
• Commercial Payment and Merchant Acquiring Fees: Treasury management fees, which include merchant acquiring, grew by 10% year-over-year in Q2 2025, driven by continued success in deepening customer relationships [cite: 8 from previous search].
• Capital Markets and Advisory Fees: Dealmaking momentum translated into a strong year-over-year jump of 21% in capital markets and advisory fees during the third quarter of 2025 [cite: 2 from second search]. This segment also saw a 15% year-over-year increase in Q2 2025.

The final component of their fee structure is the more traditional Loan and Deposit Service Fees. In the second quarter of 2025, customer deposit and loan fees specifically increased by 14% year-over-year, reaching $102 million for the quarter.

You can see how these fee components are growing, which is important for revenue stability. Here's a quick look at the reported year-over-year growth rates for the key fee categories in Q2 2025, where available, alongside the required guidance number for NII:

The bank is clearly focused on expanding these fee-based businesses, which now represent a larger mix of total revenue compared to previous years. Finance: draft 13-week cash view by Friday.