Huntington Bancshares 2Q26 10-Q REVIEW: RPL up w/ new CADE lawsuit disclosure, criticized assets decline

Research evidence excerpt

Huntington Bancshares 2Q26 10-Q REVIEW: RPL up w/ new CADE lawsuit disclosure, criticized assets decline

Barclays | Huntington Bancshares

The fair value was estimated based on a discounted cash flow methodology that gave

appropriate consideration to expected customer attrition rates, net maintenance cost of the

deposit base, alternative cost of funds, and the interest costs associated with customer

deposits. The CDI is being amortized over 10 years based upon the period over which estimated

economic benefits are estimated to be received.

Goodwill: HBAN completed the acquisitions of VBTX and CADE, which resulted in the

recognition of additional goodwill of $450mn and $3.5bn, respectively. Because this goodwill

arose after its annual testing date, it was not included in the annual impairment analysis

performed as of October 1, 2025. However, the additions of VBTX and CADE did not change

its conclusion with respect to goodwill impairment and no triggering event occurred

through the end of 2Q26 that required a reassessment of goodwill. The goodwill

recognized in connection with the acquisitions has been assigned to its reporting units

based on its assessment of how the acquired business will be integrated and how its

operations will be managed.

RPL: Its litigation RPL was $0-75mn at 2Q26 (up from $0mn-$55mn at 1Q26). HBAN disclosed a

new legal proceeding this quarter: Donelon vs. Americas Insurance Co.: The lawsuit stems

from an $8mn Main Street Lending Program loan that CADE made in November 2020 to a

holding company that owned an insurance carrier, which was later placed into receivership after

significant losses from Hurricane Ida in August 2021. The receiver, acting on behalf of the