Huntington Bancshares Inc (HBANL) 2025 Q1 法說會逐字稿

Greetings, and welcome to the Huntington Bancshares first-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加亨廷頓銀行 2025 年第一季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。

I would now like to turn the conference over to your host, Tim Sedabres, Director of Investor Relations. Please go ahead.

現在，我想將會議交給主持人、投資者關係總監 Tim Sedabres。請繼續。

Thank you, operator. Welcome, everyone, and good morning. Copies of the slides we will be reviewing today can be found on the Investor Relations section of our website, www.huntington.com. As a reminder, this call is being recorded, and a replay will be available starting about one hour from the close of the call.

謝謝您，接線生。歡迎大家，早安。我們今天將要審閱的幻燈片副本可在我們網站 www.huntington.com 的「投資者關係」版塊找到。小提醒：本次電話會議正在錄音，會議結束後約一小時即可重播。

Our presenters today are Steve Steinour, Chairman, President and CEO; and Zach Wasserman, Chief Financial Officer. Brendan Lawler, Chief Credit Officer, will join us for the Q&A. Earnings documents, which include our forward-looking statements disclaimer and non-GAAP information are available on the Investor Relations section of our website.

今天的演講者是董事長、總裁兼執行長史蒂夫·施泰諾 (Steve Steinour) 和財務長 Zach Wasserman。首席信貸官 Brendan Lawler 將加入我們的問答環節。收益文件（包括我們的前瞻性聲明免責聲明和非公認會計準則資訊）可在我們網站的投資者關係部分找到。

With that, let me now turn it over to Steve.

現在，讓我把麥克風交給史蒂夫。

Thanks, Tim. Good morning, everyone, and welcome. Thank you for joining the call today. We delivered exceptional results for the first quarter. I'll share a few highlights upfront, and then Zach will take you through the numbers.

謝謝，蒂姆。大家早安，歡迎光臨。感謝您今天參加電話會議。我們第一季取得了出色的業績。我將首先分享一些亮點，然後扎克將帶您了解這些數字。

Before we turn to the quarter, let me share a couple of thoughts on recent market volatility and our overall approach to managing the company through a period of economic uncertainty. I've seen quite a number of economic disruptions over my more than four decades in banking. And believe me, we have a robust playbook for managing through periods like this. Based on the current environment, we feel confident in our overall strategy for 2025 and continue to execute against it. We continue to drive progress against our objectives every day.

在我們開始討論本季之前，請允許我分享一些關於近期市場波動以及我們在經濟不確定時期管理公司的整體方法的想法。在我從事銀行業四十多年期間，我看過不少經濟動盪。相信我，我們有一個強大的劇本來度過這樣的時期。基於當前環境，我們對2025年的整體策略充滿信心，並將繼續執行。我們每天都在繼續努力實現我們的目標。

Now with that being said, we recognize that the probability of adverse economic scenarios has increased in recent weeks, and those scenarios in turn could create additional headwinds within our industry. Regardless of the path the economy takes, we are well positioned and expect to continue outperforming our peers. Our longstanding aggregate moderate-to-low risk appetite has proven to help us deliver strong and more predictable results through the cycle. Even in the best of times, we are steadfast in our approach to credit and risk management, and this has resulted in consistent top quartile credit performance for net charge-offs.

話雖如此，我們認識到最近幾週出現不利經濟狀況的可能性增加，而這些情況反過來可能會給我們的行業帶來額外的阻力。無論經濟走向如何，我們都已做好準備，並有望繼續超越同行。事實證明，我們長期以來總體上中等至低風險偏好能夠幫助我們在整個週期中實現強勁且更可預測的結果。即使在最好的情況下，我們也堅定不移地採取信貸和風險管理方法，這使得我們的淨沖銷信貸表現始終處於前四分位。

We also maintained an allowance for loan losses that is well above the peer median. Our foundation of strong risk management begins with disciplined client selection. We are intentional with whom we do business and in our selection of the geographies, industries, and exposures we want to underwrite and hold. We ensure broad diversification and adhere to strict limits with no outsized concentrations as you've seen in our commercial real estate portfolio. We have a well-balanced and granular loan portfolio, which we rigorously and proactively manage.

我們也維持了遠高於同業中位數的貸款損失準備金。我們強大的風險管理基礎始於嚴格的客戶選擇。我們有意選擇與我們開展業務的對象，以及我們想要承保和持有的地區、行業和風險敞口。我們確保廣泛的多樣化，並遵守嚴格的限制，沒有過度集中，正如您在我們的商業房地產投資組合中看到的那樣。我們擁有均衡、細緻的貸款組合，並對其進行嚴格、積極的管理。

All of this provides us with confidence in the foundation of the company, and it allows us to capitalize on opportunities where others sometimes cannot. Two years ago, in 2023, when many banks pulled back due to liquidity, capital, or credit concerns, we chose to invest. We took a different road. We demonstrated breakout performance, and we invested for long-term growth. We took share and accelerated new customer acquisition.

所有這些都讓我們對公司的基礎充滿信心，並使我們能夠抓住別人有時無法抓住的機會。兩年前，也就是2023年，當許多銀行因流動性、資本或信貸問題而撤資時，我們選擇投資。我們走了一條不同的路。我們表現出了突破性的業績，並且我們為長期成長進行了投資。我們佔領了市場份額並加速了新客戶的獲取。

We hired hundreds of talented bankers, added capabilities and expertise, and executed very well. And those efforts are now helping us deliver leading deposit and loan growth. We also expanded our three focused areas of fee revenue, and we're seeing good results in those areas as well. Huntington has never been better positioned. Now on to slide 4.

我們聘請了數百名優秀的銀行家，增強了能力和專業知識，並且執行得非常好。這些努力現在正在幫助我們實現領先的存款和貸款成長。我們也擴大了費用收入的三個重點領域，並且在這些領域也看到了良好的表現。亨廷頓從未擁有過如此優越的地位。現在看投影片 4。

There are four key messages we want to leave you with today. First, we sustained the momentum from year-end through the first quarter with robust loan growth and continued deposit growth. The business is performing exceptionally well. And through the first quarter, we are ahead of our plans for the year. I'd like to thank all of my colleagues and teammates for their extraordinary efforts this quarter and everything they do for our customers and company every day.

今天我們想向大家傳達四個關鍵訊息。首先，我們保持了從年底到第一季的勢頭，貸款成長強勁，存款持續成長。業務表現異常出色。截至第一季度，我們已經提前完成了全年計劃。我要感謝我的所有同事和隊友本季的非凡努力以及他們每天為我們的客戶和公司所做的一切。

Second, we're driving revenue and profit growth year over year, consistent with the strategy we shared at Investor Day. Profit growth is supported by our earning asset growth, expanded net interest margin, growth of value-added fee revenues, and disciplined expense management. Third, credit performance continues to be strong. We are proactively managing all of our loan portfolios. Fourth, our strong financial foundation enables us to operate through a range of potential economic scenarios.

其次，我們正在推動收入和利潤逐年成長，這與我們在投資者日分享的策略一致。利潤成長得益於我們的生息資產成長、淨利差擴大、增值手續費收入成長以及嚴格的費用管理。三是信貸表現持續強勁。我們正在積極管理我們所有的貸款組合。第四，我們強大的財務基礎使我們能夠應對各種潛在的經濟狀況。

Turning to slide 5. I'll recap our performance in the first quarter. We grew average loans by almost $9 billion year over year, supported by both core businesses and new initiatives. Average deposit growth continued and increased by almost $11 billion year over year. Our deposit strategy remains focused on acquiring and deepening primary bank relationships, and we grew primary bank relationships by 3% in consumer and 4% in business banking over the previous year.

翻到幻燈片 5。我將回顧我們第一季的表現。在核心業務和新舉措的支持下，我們的平均貸款年增了近 90 億美元。平均存款持續成長，較去年同期成長近 110 億美元。我們的存款策略仍然專注於獲取和深化主要銀行關係，與前一年相比，我們在消費者銀行業務中的主要銀行關係增長了 3%，在商業銀行業務中的主要銀行關係增長了 4%。

Importantly, we are maintaining disciplined deposit pricing while delivering this growth. Our investments in value-added fee revenues continued to deliver with fee income increasing over 6% year over year, led by payments, wealth and capital markets. We are continuing to invest in these areas. For example, in capital markets, we're excited to welcome Chris Wood to lead the continued build-out of our leveraged finance program and private equity coverage. We invested in talent and launched two new verticals, financial institutions group and aerospace and defense.

重要的是，我們在實現這一成長的同時，也保持著嚴格的存款定價。我們對增值費用收入的投資持續帶來效益，費用收入較去年同期成長超過 6%，其中支付、財富和資本市場成長最為強勁。我們將繼續在這些領域進行投資。例如，在資本市場，我們很高興歡迎克里斯伍德 (Chris Wood) 領導我們槓桿融資計劃和私募股權覆蓋範圍的持續建設。我們投資人才並推出了兩個新的垂直領域：金融機構集團和航空航太與國防。

In North and South Carolina, we are accelerating our branch expansion plans. We're excited to bring the entire Huntington franchise to this region. These investments will drive long-term value creation for shareholders and contribute to the medium-term goals. Our capital levels improved as well with adjusted CET1 growing by 20 basis points from the prior quarter to 8.9%. In anticipation of reaching our operating range, the Board approved a $1 billion multiyear share repurchase authorization, which provides us flexibility for capital deployment.

在北卡羅來納州和南卡羅來納州，我們正在加快分公司擴張計畫。我們很高興將整個亨廷頓特許經營權帶到這個地區。這些投資將推動股東創造長期價值，並有助於實現中期目標。我們的資本水準也有所提高，調整後的 CET1 較上一季成長 20 個基點，達到 8.9%。為了達到我們的營運範圍，董事會批准了 10 億美元的多年期股票回購授權，這為我們的資本部署提供了靈活性。

Turning to slide 6. Let me take a moment to share the top-level revenue and PPNR trends we have delivered, 10% year-over-year revenue growth and 24% year-over-year PPNR growth. As I said, the business is performing very well and continuing to build momentum. We are optimistic about Huntington's future and the opportunities that lie ahead. As a reminder, the Board and management are collectively a top 10 shareholder, and we are fully aligned and committed to our investors to drive outperformance and additional shareholder value.

翻到幻燈片 6。讓我花點時間來分享我們實現的頂級收入和 PPNR 趨勢，營收年增 10%，PPNR 年成長 24%。正如我所說，業務表現非常好，並且繼續保持強勁勢頭。我們對亨廷頓的未來和未來的機會充滿樂觀。提醒一下，董事會和管理層共同構成了前十大股東，我們與投資者完全一致並致力於推動卓越業績和額外的股東價值。

With that, I'll ask Zach to provide an overview of the financial performance.

有了這些，我會請扎克概述一下財務表現。

Thanks, Steve, and good morning, everyone. Slide 7 provides highlights of our first-quarter results. We reported earnings per common share of $0.34. Return on tangible common equity, or ROTCE, came in at 16.7% for the quarter. As Steve noted, preprovision net revenue, PPNR, expanded by 24% year over year to $783 million.

謝謝，史蒂夫，大家早安。幻燈片 7 展示了我們第一季的業績亮點。我們報告的每股普通股收益為0.34美元。本季有形普通股權益回報率（ROTCE）為16.7%。正如史蒂夫所指出的，撥備前淨收入 PPNR 年比成長 24%，達到 7.83 億美元。

Adjusted for notable items, PPNR rose 18% year over year. Average loan balances grew by $2.7 billion or 2.1% from the prior quarter. Average deposits increased by $2.2 billion or 1.4% versus prior quarter. Reported CET1 ended the quarter at 10.6%, increasing approximately 40 basis points from last year. Tangible book value per share has increased by over 13% year over year. We continue to demonstrate strong credit performance with net charge-offs of 26 basis points. Allowance for credit losses ended the quarter at 1.87%.

經顯著專案調整後，PPNR 年比成長 18%。平均貸款餘額較上一季增加 27 億美元，增幅 2.1%。平均存款較上一季增加 22 億美元，成長 1.4%。報告顯示，本季末 CET1 為 10.6%，比去年同期增加約 40 個基點。每股有形帳面價值較去年同期成長超過13%。我們的信貸表現持續強勁，淨沖銷額為 26 個基點。本季末信貸損失準備金率為 1.87%。

Turning to Slide 8. Consistent with our plan and prior guidance, loan balances grew for the sixth consecutive quarter driven by commercial loans which increased $2.2 billion or 3.1% from the prior quarter. Year over year, loans grew 7.3%, driven by continued production in the core business and contributions from the new initiatives. During the quarter, growth from new initiatives continued to accelerate from the prior quarter, and represented $1.3 billion or approximately half of the total growth. The primary drivers of new initiative loan growth in the quarter included financial institutions group, mortgage servicing, funds finance in North and South Carolina and Texas.

翻到幻燈片 8。與我們的計劃和先前的指導一致，貸款餘額連續第六個季度增長，這得益於商業貸款的推動，商業貸款較上一季度增加了 22 億美元，增幅為 3.1%。與去年同期相比，貸款成長了 7.3%，這得益於核心業務的持續生產和新措施的貢獻。本季度，新措施帶來的成長持續加速，達到 13 億美元，約佔總成長的一半。本季新措施貸款成長的主要驅動力包括金融機構集團、抵押貸款服務、北卡羅來納州、南卡羅來納州和德克薩斯州的基金融資。

Of the remaining $1.4 billion of loan growth from existing businesses, we delivered $697 million from corporate and specialty banking, $439 million from regional banking, commercial and industrial, $209 million from seasonally higher balances within distribution finance, and $301 million from auto. Offsetting a portion of this growth was lower commercial real estate balances which declined by $261 million.

在現有業務剩餘的 14 億美元貸款成長中，我們從企業和專業銀行業務中獲得了 6.97 億美元，從地區銀行、商業和工業業務中獲得了 4.39 億美元，從分銷融資中季節性較高的餘額中獲得了 2.09 億美元，從汽車業務中獲得了 3.01 億美元。抵銷了部分成長的是商業房地產餘額的下降，減少了 2.61 億美元。

Turning to slide 9. Since the first quarter of 2023, we have consistently delivered deposit growth well above peer levels, and our positive momentum continued into the first quarter of 2025. Average balances increased by $2.2 billion or 1.4% driven by continued household growth. We lowered our overall cost of deposits in the quarter by 13 basis points to 2.03%. This outperformed the expectations we shared in January and reflects our disciplined deposit pricing.

翻到第 9 張投影片。自 2023 年第一季以來，我們的存款成長一直遠高於同業水平，我們的積極勢頭一直持續到 2025 年第一季。由於家庭數量持續增長，平均餘額增加了 22 億美元，即 1.4%。我們將本季的總存款成本降低了 13 個基點，至 2.03%。這超出了我們一月份的預期，反映了我們嚴格的存款定價。

On to Slide 10. During the quarter, we drove $31 million or 2.2% growth in net interest income. This reflects almost 11% growth year over year and the fourth consecutive quarter of net interest income dollar growth. Net interest margin was 3.1% for the first quarter, up 7 basis points from the prior quarter. The increase in interest margin from the prior quarter included 2 basis points higher spread net of free funds, a 1-basis-point reduction from higher cash balances, a 4-basis-point benefit from lower drag from the hedging program, and a 3-basis-point benefit from interest recoveries and other smaller items. We were very pleased with the performance of the underlying 307 basis points of NIM in the quarter, which beat our earlier expectations primarily as a result of strong performance in deposit beta.

轉到投影片 10。本季度，我們的淨利息收入成長了 3,100 萬美元，即 2.2%。這反映了同比增長近 11%，並且是淨利息收入連續第四個季度增長。第一季淨利差為3.1%，較上季上升7個基點。息差較上一季度增加，其中包括扣除可用資金後的利差增加 2 個基點、現金餘額增加導致的利差減少 1 個基點、對沖計劃拖累降低導致的利差增加 4 個基點，以及利息回收和其他較小項目導致的利差增加 3 個基點。我們對本季 NIM 基礎利率 307 個基點的表現非常滿意，這超出了我們先前的預期，這主要得益於存款貝塔值的強勁表現。

Turning to slide 11. Our level of cash and securities at quarter end remained at 28% of total assets, consistent with the prior quarter, and we held modestly higher cash balances in the quarter. We have continued to reinvest cash flows into treasuries, which now represent 20% of our total securities portfolio, up 8% from a year ago. As I have previously stated, we expect to manage the duration of the portfolio at approximately the current range.

翻到第 11 張投影片。本季末，我們的現金和證券水準仍佔總資產的 28%，與上一季一致，且本季我們的現金餘額略有增加。我們繼續將現金流再投資於國債，目前國債占我們總證券投資組合的 20%，比一年前增加了 8%。正如我之前所說，我們預計投資組合的持續時間將保持在當前水準左右。

Turning to slide 12. We continue to manage our hedging program to both protect net interest margin from a lower rate environment as well as protect capital from potential higher rates. Over the last 12 months, we have reduced our asset sensitivity to a near-neutral level. During the first quarter, we added to our down rate risk hedges with approximately $4 billion in floor spreads. We continue to analyze multiple potential rate scenarios and will remain dynamic as we continue to calibrate to the most likely rate environment.

翻到第 12 張投影片。我們將繼續管理我們的對沖計劃，以保護淨利差免受低利率環境的影響，並保護資本免受潛在的高利率的影響。在過去的 12 個月中，我們已將資產敏感度降低至接近中性的水平。在第一季度，我們增加了約 40 億美元的利率下限風險避險。我們將繼續分析多種潛在的利率情景，並將保持動態，繼續校準最可能的利率環境。

Moving to slide 13. On a GAAP basis, noninterest income increased by 6% or $27 million from the prior year. We continue to see solid growth, driven by payments, wealth management, and capital markets. As a reminder, the first quarter is generally a seasonal low for fee revenues, and we expect fee revenues to grow over the course of the year.

移至幻燈片 13。根據 GAAP 計算，非利息收入較前一年增加 6% 或 2,700 萬美元。在支付、財富管理和資本市場的推動下，我們繼續看到穩健的成長。提醒一下，第一季通常是費用收入的季節性低點，我們預計費用收入將在全年增長。

Moving to slide 14. Within Payments, we saw 6% group growth year over year in the first quarter driven by a 15% increase in commercial payment revenues. Treasury management fees grew 10% as we continue to penetrate and deepen within our customer base and benefited from an increasing contribution from our new merchant acquiring model.

移至投影片 14。在支付領域，第一季集團營收年增 6%，這得益於商業支付收入成長 15%。隨著我們繼續滲透和深化我們的客戶群，並受益於我們新的商家收單模式的貢獻不斷增加，資金管理費增加了 10%。

Moving to wealth management on slide 15. Fees increased by 15% on a year-over-year basis. AUM continued to grow, increasing 6% from the prior year, with wealth advisory households up 11% year on year. We've gathered approximately $1.4 billion in net flows over the last year as we continue to execute our strategy to deepen our advisory penetration into our customer base.

前往第 15 張投影片上的財富管理。費用較去年同期上漲了15%。資產管理規模持續成長，較前一年成長6%，其中財富諮詢家庭年增11%。隨著我們繼續執行深化諮詢服務對客戶群滲透的策略，我們去年已聚集了約 14 億美元的淨流量。

Moving to slide 16. Capital markets grew 20% year over year supported by commercial loan production-related capital markets activity including notable strength in underwriting and syndications. Turning to Slide 17. GAAP noninterest expense decreased sequentially by $26 million, driven by lower personnel expenses primarily because of a seasonal reduction in incentives and revenue-driven compensation.

移至投影片 16。受商業貸款生產相關資本市場活動（包括承銷和銀團貸款的顯著增長）的推動，資本市場年增 20%。翻到第 17 張投影片。以美國通用會計準則計算的非利息支出較上季減少 2,600 萬美元，主要原因是人員支出減少，這主要是由於激勵和收入驅動型薪酬的季節性減少。

Slide 18 recaps our capital position. We continue to drive common equity Tier 1 higher, and our capital management strategy remains focused on our top priority to fund high-return loan growth while continuing to drive adjusted CET1 inclusive of AOCI into our operating range of 9% to 10% over time. As Steve stated in his remarks, the Board approved a $1 billion share repurchase program, which provides Huntington flexibility in our expected capital distribution plan over the next several years. The timing of repurchases will be discretionary and depend on a number of factors including the macroeconomic and interest rate environment as well as the pace of loan growth. We would expect any repurchases in 2025 to be modest.

投影片 18 概括了我們的資本狀況。我們繼續提高普通股一級資本比率，我們的資本管理策略仍然專注於為高回報貸款增長提供資金的首要任務，同時繼續推動包括 AOCI 在內的調整後 CET1 隨著時間的推移進入我們的 9% 至 10% 的運營範圍。正如史蒂夫在演講中所說，董事會批准了一項 10 億美元的股票回購計劃，這為亨廷頓未來幾年預期的資本分配計劃提供了靈活性。回購時機將酌情決定，取決於宏觀經濟和利率環境以及貸款成長速度等多種因素。我們預計 2025 年的回購規模都將比較小。

Turning to slide 19. Credit quality continues to outperform. Net charge-offs decreased 4 basis points in the quarter. Allowance for credit losses was 1.87%, lower by 1 basis point from the prior quarter and up $32 million sequentially, reflecting strong loan portfolio growth and continued solid credit performance. Turning to slide 20. The criticized asset ratio increased to 3.98%. The nonperforming asset ratio ended the quarter 2 basis points lower at 61 basis points.

翻到第 19 張投影片。信貸品質持續表現優異。本季淨沖銷額減少了 4 個基點。信貸損失準備金為 1.87%，比上一季下降 1 個基點，比上一季增加 3,200 萬美元，反映出貸款組合強勁成長和信貸表現持續穩健。翻到第 20 張投影片。受批評資產比率上升至3.98%。本季末不良資產率下降 2 個基點，至 61 個基點。

Let's turn to slide 21 for our outlook for 2025. Clearly, there is more uncertainty in the economic outlook for 2025 today than there was at the beginning of the year. As Steve noted earlier, we run the business with a highly dynamic approach where we continually analyze multiple potential economic scenarios and ensure that we have action plans ready not only to manage but to outperform in all of them. The business performed exceptionally well in Q1, and we have momentum going into Q2.

讓我們翻到第 21 張幻燈片來了解我們對 2025 年的展望。顯然，今天對 2025 年經濟前景的不確定性比年初更大。正如史蒂夫之前提到的，我們以高度動態的方式經營業務，不斷分析多種潛在的經濟情景，並確保我們準備好行動計劃，不僅可以管理，而且可以在所有情景中表現出色。第一季的業務表現非常出色，我們在第二季也保持了良好的發展勢頭。

Based on our results thus far in 2025, our full-year guidance is the best estimate for how we will perform this year. On loans, we continue to expect growth within the prior range of 5% to 7%. Based on the robust performance in Q1 and the momentum that is carrying into Q2, we are well on track to achieve that objective, notwithstanding the less certain economic outlook. In a less volatile economic environment, we would likely have increased our guidance. On deposits, we expect to drive growth within the prior range of 3% to 5% as we focus on growing primary banking relationships and new households.

根據我們 2025 年迄今的業績，我們的全年指引是我們今年業績的最佳估計。對於貸款，我們繼續預期成長率將在先前的 5% 至 7% 的範圍內。基於第一季的強勁表現和第二季的強勁勢頭，儘管經濟前景不太確定，但我們仍有望實現這一目標。在經濟環境波動較小的情況下，我們可能會提高我們的指導。在存款方面，我們預計成長率將在之前的 3% 至 5% 之間，因為我們專注於發展主要銀行關係和新家庭。

For net interest income, we're increasing our guidance on a dollar basis, to plus 5% to 7% based on our strong first-quarter performance and benefiting from a stronger NIM. As noted previously, this level would reflect record net interest income on a full-year basis. Fee revenues are tracking within the 4% to 6% prior range. Expense growth is also tracking to the prior range of 3.5% to 4.5%, driven by sustained investments in revenue-producing initiatives and overall growth in the business. On credit, we continue to expect net charge-offs for the year to be between 25 and 35 basis points.

對於淨利息收入，基於我們強勁的第一季業績和更強勁的淨利息收益率，我們將以美元為基礎的預期上調至增加 5% 至 7%。如前所述，這一水平將反映全年創紀錄的淨利息收入。費用收入目前維持在 4% 至 6% 的範圍內。支出成長率也與先前的 3.5% 至 4.5% 持平，這得益於對創收計畫的持續投資以及業務的整體成長。在信貸方面，我們繼續預期今年的淨沖銷額將在 25 至 35 個基點之間。

I will also share some color on expectations for the second quarter. We expect sequential average loan growth between 1% and 2%. Deposits are expected to grow as well as we focus on self-funding our loan growth. We expect net interest income to grow modestly into the second quarter, driven by earning asset growth and a relatively stable run rate NIM. Fee revenues are expected to grow modestly from their seasonal Q1 low.

我還將分享一些對第二季的預期。我們預計貸款平均環比成長率將在 1% 至 2% 之間。由於我們專注於自籌資金實現貸款成長，因此存款預計也會成長。我們預計，受生息資產成長和相對穩定的淨利息收入 (NIM) 推動，淨利息收入將在第二季溫和成長。預計費用收入將從第一季的季節性低點小幅增長。

We expect expenses of approximately $1.170 billion with the sequential increase of approximately $20 million, driven approximately half from the full-quarter impact of annual merit and the remainder from higher expected revenue-driven compensation from growing fee revenues. Lastly, we expect Q2 net charge-offs within our full-year range.

我們預計支出約為 11.70 億美元，環比增加約 2000 萬美元，其中約一半來自年度績效獎金的整個季度影響，其餘部分來自費用收入增長帶來的預期收入驅動薪酬的提高。最後，我們預計第二季淨沖銷額將在全年範圍內。

Turning to slide 22. In closing, we remain focused on driving long-term shareholder value creation. Our performance is driven by our culture and our purpose. We operate a powerful franchise that is both scaled and diversified with multiple sustainable growth levers from a position of strength. Risk management is deeply embedded in our culture.

翻到第 22 張投影片。最後，我們仍然致力於推動長期股東價值創造。我們的業績由我們的文化和目標驅動。我們經營著一個強大的特許經營權，該特許經營權規模龐大、業務多樣化，擁有多種可持續的成長槓桿，實力雄厚。風險管理深植於我們的文化中。

Throughout the years, we have consistently demonstrated top-tier performance in stressed environments as measured by DFAST and CCAR data. Our focus on adjusted CET1, inclusive of AOCI, demonstrates the rigor of our capital management approach. Our liquidity remains top tier in the industry. The organic growth we are driving continues to significantly outpace our peer group and support the attractive revenue and profit growth we are delivering.

多年來，根據 DFAST 和 CCAR 數據衡量，我們在壓力環境中始終表現出一流的性能。我們關注調整後的 CET1（包括 AOCI），體現了我們資本管理方法的嚴謹性。我們的流動性仍然處於行業領先水平。我們推動的有機成長持續顯著超過我們的同行，並支持我們實現可觀的收入和利潤成長。

With that, we will conclude our prepared remarks. And before we move to Q&A, let me take a moment and thank Tim Sedabres for his leadership of our Investor Relations program over the past four years. Many of you know him well, given the strong relationships, and his counsel has been of great value to us. Tim will be taking on a new role within our finance organization as part of his development plan, leading our corporate forecasting and profitability team.

至此，我們的準備好的發言就結束了。在我們進入問答環節之前，請允許我花點時間感謝 Tim Sedabres 在過去四年裡對我們投資者關係計劃的領導。由於我們之間有著密切的關係，你們中的許多人都很了解他，他的建議對我們來說非常有價值。作為其發展計劃的一部分，蒂姆將在我們的財務部門擔任新職務，領導我們的企業預測和盈利團隊。

We look forward to accepting our new Head of IR in the coming weeks. Tim, thank you, and over to you for questions and answers.

我們期待在未來幾週內接受我們的新 IR 主管。提姆，謝謝你，接下來請你提問和回答。

Thank you, Zach. Operator, we will now take questions. (Operator Instructions) Thank you.

謝謝你，扎克。接線員，我們現在來回答問題。（操作員指示）謝謝。

(Operator Instructions) Erika Najarian, UBS.

（操作員指示）瑞銀 (UBS) 的 Erika Najarian。

My first question is for Zach. The net interest margin clearly came in higher than expectations. Sort of just wanted to unpack what you said. Should we think about flat net interest margin trends relative to the 3.10%, or should we take out the interest recoveries? And as we contemplate what you've said in the past and obviously the usual rate positioning that you showed us, should we then apply sort of that flat net interest margin thought process for the rest of the year?

我的第一個問題是問札克的。淨利差明顯高於預期。只是想解釋一下你所說的話。我們是否應該考慮相對於 3.10% 的平穩淨利差趨勢，還是應該剔除利息回收？當我們考慮您過去所說的內容以及您向我們展示的通常利率定位時，我們是否應該在今年剩餘時間內應用這種平坦淨利差思維過程？

Just let me unpack a bit of that. So for the first quarter, as I noted in the prepared remarks, really the big driver of the outperformance for us was deposit pricing. And frankly, the teams executed exceptionally well and beat our own internal plan. If you just think about that topic for a second, through the fourth quarter of last year, we achieved a cumulative deposit beta of down 24%. And our expectations as we went into this year was to see continued sort of gradual improvement on that down beta getting to the high 30s by the end of 2025, we achieved actually 37% just in the first quarter. So it was a significant acceleration of that performance and just really, really great results.

讓我稍微解釋一下這一點。因此，對於第一季而言，正如我在準備好的發言中指出的那樣，真正推動我們業績優異的主要因素是存款定價。坦白說，團隊表現非常出色，超越了我們自己的內部計劃。如果你稍微思考這個主題，你會發現截至去年第四季度，我們的累積存款貝塔值下降了 24%。我們今年的預期是看到下行貝塔值繼續逐步改善，到 2025 年底達到 30 多%，實際上我們在第一季就實現了 37% 的成長率。因此，這顯著加速了性能，並且取得了非常非常好的成果。

And that's really primarily what drove us above the -- what we expected to be flat to the 3.03% roughly level we were at in Q4. As I think about the kind of run rate from here to the second part of your question, we're looking at our current run rate is around 3.07%, Erika, to answer your question. And I see under most scenarios here and there is clearly a wider range of scenarios that one might think about at this point.

這實際上是推動我們超出預期的主要原因——我們預計第四季度的成長率將與 3.03% 的水平持平。當我思考從這裡到問題第二部分的運行率時，我們看到我們目前的運行率約為 3.07%，Erika，回答你的問題。我看到大多數情況下都是這樣的，而且顯然還有更廣泛的場景值得人們考慮。

But there are most of those of either zero cuts or as many as 3 or 4 that are in the curve right now, pretty consistent within a few basis points outcome around that 3.07% for the remainder of this year. So pretty flat within the reasonable range of 3.07% for the next three quarters. I continue to model numerous scenarios, as you know, out over the longer term, and all of those really continue to indicate the opportunity for us to see rising NIMs at 2026, aligned to what we talked about at length at our Investor Day a couple of months ago. So pretty similar kind of shape of that curve just phase shifted up a little bit to 3.07% in the near term.

但目前曲線上大多數都是零次降息或多達三次或四次降息，在今年剩餘時間內，其結果在幾個基點左右相當一致，接近 3.07%。因此，未來三個季度的成長率將在 3.07% 的合理範圍內保持穩定。如你所知，我將繼續模擬多種長期情景，所有這些情景都確實繼續表明我們有機會在 2026 年看到 NIM 上升，這與我們幾個月前在投資者日詳細討論的內容一致。因此，此曲線的形狀非常相似，只是在短期內略微上移至 3.07%。

And my second question, if I may, is for Steve. I thought the $1 billion in buyback authorization is interesting. It's pretty clear from the performance in the quarter and your outlook that your business momentum continues to be best-in-class because, to your point, you were able to zig when everyone else was zagging given your superior capital and risk management in '23. So is that just really a message of if tariff uncertainty continues to hit the banking sector, you wanted flexibility to support your stock because you see inherent higher value?

如果可以的話，我的第二個問題是問史蒂夫的。我認為 10 億美元的回購授權很有趣。從本季度的表現和您的展望可以清楚地看出，您的業務發展勢頭仍然保持最佳，因為正如您所說，憑藉您在 23 年卓越的資本和風險管理，當其他人都在曲折前進時，您卻能夠實現逆勢而上。那麼，這是否真的只是一個訊息：如果關稅不確定性繼續衝擊銀行業，您是否希望獲得靈活性來支持您的股票，因為您看到了內在的更高價值？

I'm just trying to -- not to put words in your mouth, but in the over a decade that I've covered you, you've never been a huge fan of buybacks. So I just wanted to get your thought process on that.

我只是想——不是要把話塞到你嘴裡，但在我報道你的十多年裡，你從來都不是回購的狂熱粉絲。所以我只是想了解你對此的想法。

Thank you, Erika. Since you've covered us a bit before, we've had a consistent approach to capital allocation for us to grow. And we're getting really good growth now as you pointed out, best-in-class, second to the dividend and third to other uses including buybacks. We expect a buyback of it this year, and we've got a multi-year opportunity. And so depending on the economic situation, we're prepared now to do buybacks and expect that we will on some modest basis this year and then continuing as we go forward.

謝謝你，埃里卡。正如您之前對我們進行的一些報告一樣，我們一直採取一致的資本配置方法來實現成長。正如您所指出的，我們現在獲得了非常好的成長，是同類中最好的，僅次於股息，第三是包括回購在內的其他用途。我們預計今年會進行回購，而且我們有一個多年期的機會。因此，根據經濟形勢，我們現在準備好回購，並預計今年我們將進行適度回購，然後在未來繼續進行。

John Pancari, Evercore ISI.

約翰·潘卡里（John Pancari），Evercore ISI。

On the deposit cost progress in the quarter, definitely better than expected. Can you maybe give us a little bit of color on what -- where you're seeing that success? Is it tied in to the new efforts on the certain product side? Or is it programs that you've been pushing through and across the pricing programs across the product. Just if you could help us kind of in a better picture around the success on that front versus the competitive backdrop?

就本季的存款成本進展而言，肯定好於預期。您能否向我們稍微介紹一下您認為成功的面向？它是否與某些產品的新努力有關？或是您一直在推行的、貫穿整個產品定價計畫的計畫。您能否幫助我們更了解該領域的成功與競爭背景？

Yeah. Good question, John. This is Zach. I'll take it.

是的。問得好，約翰。這是札克。我要買它。

In general, I would characterize the outcome that really is a function of the consistent plan we've had around down beta. So not really any sort of change in that strategy, just a great execution of it and outperformance of it. Just if I remind you to the five key levers that we had highlighted as integral to our down beta plan over the last several quarters, the first was decreasing the mix of CDs within the overall funding base and secondly, shortening their duration, thereby setting us up to be ready to see a higher beta on that product set over time. That continues to work very well.

總的來說，我認為結果實際上是我們圍繞降低測試版所製定的一致計劃的函數。因此，該戰略實際上沒有任何改變，只是執行得非常好並且表現優異。如果我提醒您，我們在過去幾季中強調的作為我們降低測試版計劃不可或缺的五個關鍵槓桿，那麼第一個就是減少整個資金基礎中的 CD 組合，其次是縮短其期限，從而讓我們準備好隨著時間的推移看到該產品組的更高測試版。這一做法至今仍非常有效。

I will note, by the way, in the CD area, we're seeing historical CDs expire, and we're retaining the large majority of those customers at significantly lower rates, something like approximately 100 basis points lower. And that's a meaningful piece of that overall deposit cost reduction. The third part of our down-rated plan was as we acquired in volume, acquiring that in money market as opposed to time deposit. And that really kind of a high beta product allows us to continue to manage through for potential future industry reductions.

順便說一下，我要指出的是，在 CD 領域，我們看到歷史 CD 到期，並且我們以明顯較低的利率保留了絕大多數客戶，大約低了 100 個基點。這對於降低整體存款成本具有重要意義。我們的降級計劃的第三部分是隨著我們數量的增加，我們在貨幣市場而不是定期存款中收購。這種高 beta 值產品確實使我們能夠繼續管理未來潛在的產業削減。

Fourth, we reduced our go-to-market pricing. I think as we've talked about a number of times in the past, we are incredibly segmented in terms of how we think about deposit pricing in the consumer and business world very much on a regional basis in the commercial world, looking at industry segments and size bands. And we look almost every day, if not certainly every week at where is the competitive pricing. And we have purposely reduced our pricing within that overall sphere.

第四，我們降低了市場定價。我認為，正如我們過去多次談到的那樣，我們在考慮消費者和商業領域的存款定價時，在很大程度上是以商業領域的區域為基礎，根據行業細分和規模範圍進行細分的。我們幾乎每天（如果不是每週的話）都會關注哪裡有競爭性定價。我們有意降低了整個領域的價格。

And then lastly, fifth, selectively reducing pricing on existing segments. And we had a lot of confidence as we came into the year that we would be able to execute our overall beta plan very, very well. And we challenged ourselves to some degree to go even harder than that. And to the team's credit, they really performed very, very well.

最後，第五，選擇性降低現有細分市場的價格。進入新的一年，我們充滿信心，相信我們能夠非常出色地執行我們的整體測試計劃。我們在某種程度上挑戰自己，甚至做得更努力。值得稱讚的是，球隊的表現確實非常非常出色。

And the last thing I'll say is, to some degree, you may remember when we set Q1 guidance, we also expected deposits to be about flat actually quarter to quarter. And not only do we outperform on deposit costs, we actually outperformed on volume as well and grew that. I think it's just another testament to the deposit franchise is incredibly strong.

最後我想說的是，在某種程度上，您可能還記得，當我們設定第一季指引時，我們也預期存款實際上會逐季持平。而且我們不僅在存款成本方面表現出色，而且在存款量方面也表現出色，並且實現了成長。我認為這只是存款特許經營權極其強大的另一個證明。

And then on loan growth, you indicated that the new initiatives generated about half of the loan growth in the quarter. And can you help us a little bit in terms of what new yields you're bringing the paper on? I mean, there's questions out there like you've got to win that share from someone. And therefore, is it pricing that's getting you there? Or is it just getting -- stepping up the focus in these areas where you haven't had before since there are new businesses?

關於貸款成長，您指出新措施產生了本季約一半的貸款成長。您能否就您將為報紙帶來的新收益方面提供一些幫助？我的意思是，存在一些問題，例如你必須從某人那裡贏得那份份額。那麼，定價是否能幫助您實現這一目標？或者只是——由於有了新業務，所以要加強對這些以前從未涉及過的領域的關注？

And I know the margins have been competitive because of your funding dynamics. But how about the new loan yields? Is there any way to help us think about what yields these new papers coming on at.

而且我知道，由於你們的融資動態，利潤率一直很有競爭力。但新的貸款收益率如何？有什麼方法可以幫助我們思考這些新論文的成果是什麼。

Yeah. So it's a great question, John. And the short answer -- I will unpack it in more detail, but the short answer is the new yields are coming on pretty consistent with our overall production yields, not leveraging any kind of overly aggressive pricing to win there. We are seeing -- I think we've talked about this a lot. We have hired extraordinarily experienced bankers who have deep connectivity and relationships and the model we have to bring the expertise of a large bank down to a local level in the Carolinas and Texas, and then separately, the expertise, the deep, deep expertise of our industry vertical specialist banking leaders is really what's causing us to win here, not pricing.

是的。這是一個很好的問題，約翰。簡短的回答是——我將更詳細地闡述這一點，但簡短的回答是，新的收益率與我們的整體生產收益率非常一致，並沒有利用任何過於激進的定價來獲勝。我們看到——我想我們已經討論過很多次了。我們聘請了經驗豐富的銀行家，他們擁有深厚的人脈和關係，我們的模式是將大型銀行的專業知識帶到卡羅來納州和德克薩斯州的當地層面，然後，我們行業垂直專業銀行領導者的專業知識，深厚的專業知識才是我們在這裡取勝的真正原因，而不是定價。

And in fact, when I look at the return on capital of those deals through our capital approval committees, they look very attractive. Just as an indication, we talked about the fact that the Carolinas achieved profitability last year during the year is a great sense of how the pricing is going. So not leveraging overall pricing there and seeing a lot of good strength. And I think when we look at the outcome of NIM, that's a testament to that. We're not seeing any kind of degradation in our run rate now, even as we really accelerate loan growth throughout the last part of last year (inaudible) and the guidance would grow with that as well.

事實上，當我透過我們的資本審批委員會審視這些交易的資本回報時，它們看起來非常有吸引力。作為一個指示，我們談到卡羅萊納州去年實現盈利的事實，這很好地說明了定價的走向。因此，不會利用那裡的整體定價，也不會看到太多的良好實力。我認為，當我們看 NIM 的結果時，就證明了這一點。儘管我們在去年下半年確實加速了貸款成長（聽不清楚），但我們現在沒有看到運行率有任何下降，指導也會隨之增長。

Ebrahim Poonawala, Bank of America.

美國銀行的 Ebrahim Poonawala。

Just maybe one question is, you had very, very strong first quarter, I think, head and shoulders above most of your peers. Just talk to us in terms of how things evolved during the quarter, Steve? Did things start off extremely strong, and then March and maybe in the last couple of weeks, have you seen that weakness that we all worry about in terms of the economy and clients being on the sidelines? Or just how would you describe how the quarter evolved.

也許只有一個問題，我認為你們第一季的表現非常非常強勁，遠遠超過大多數同行。史蒂夫，請跟我們談談本季的情況如何？一開始情況是不是非常強勁，然後到了三月份，或者可能是過去的幾週，你是否看到了我們都擔心的經濟疲軟以及客戶觀望的現象？或您如何描述本季的發展情況。

We actually announced it at year-end. We have a very strong pipeline coming into the first quarter. And we also had activity that didn't close in the fourth quarter that's billed into the first. So we had a good start.

我們實際上是在年底宣布了這一消息。我們第一季的銷售管道非常強勁。我們還有一些第四季未完成的活動已計入第一季。所以我們有一個好的開始。

January was a very good month, but we've had each of the months have been very good. There hasn't been a tail off per se, but some of the activity that we actually thought would fund in the first quarter had been deferred just a modest amount that, and it's largely equipment finance and tariff-related issues or concerns.

一月是一個非常好的月份，但我們每個月的表現都非常好。從本質上來說，並沒有出現減少，但我們實際上認為將在第一季度提供資金的一些活動被推遲了少量時間，而且主要是與設備融資和關稅相關的問題或擔憂。

But as you know, at a really good first quarter, our pipeline going into the second quarter, again, with high probability close is almost the same level as it was in the first quarter. So our second quarter, unless something dramatically happens, should be reasonably strong as well. So we're not seeing a material drop off by any stretch and things that are being deferred have the potential to be stacked into the second half of this year, and we usually have a very strong fourth quarter.

但正如你所知，在第一季表現非常好的情況下，我們進入第二季的管道很可能再次接近第一季的水平。因此，除非發生重大事件，否則我們的第二季也應該表現相當強勁。因此，我們並沒有看到材料產量有任何下降，而且被推遲的事情可能會延續到今年下半年，而且我們通常會有一個非常強勁的第四季。

That's helpful, Steve. And I guess the other component to growth is you picked up a lot of talent. I'm just wondering, is there an amount of growth that's coming from the bankers that you've hired, bringing on their books of business, which should happen no matter what is there a component of that, that we should keep in mind when we think about Huntington's loan or deposit growth?

這很有幫助，史蒂夫。我想，成長的另一個因素是你獲得了很多才能。我只是想知道，您所僱用的銀行家是否帶來了一定程度的增長，他們的業務賬簿上是否也包含這些增長，無論其中是否存在什麼組成部分，當我們考慮亨廷頓的貸款或存款增長時，我們都應該牢記這一點？

Absolutely. Our new colleagues -- remember there's roughly an average 20-year tenure on that, and they are outstanding. We just had our Board session in Charlotte to meet the entire teams and in the North and South Carolina obviously very enthused by our directors about what has been accomplished and encouragement to do more. So we -- they're an important part of the overall results, and we expect that they'll have runway now for years. But I would also suggest the core is performing very, very well.

絕對地。我們的新同事——請記住，他們平均任職時間大約為 20 年，而且他們非常出色。我們剛剛在夏洛特召開了董事會會議，與整個團隊會面，北卡羅來納州和南卡羅來納州的董事們顯然對我們所取得的成就感到非常興奮，並鼓勵我們做更多的事情。因此，它們是整體業績的重要組成部分，我們預計它們將在未來幾年保持良好的發展勢頭。但我還認為核心表現非常非常好。

And our colleagues in the more traditional business lines, if you will, just are doing a great job. Our commercial real estate, which has run off quite a bit in last year is stabilizing, and we expect to have a stable, if not modest growth in this year. So it's all coming together as planned. We shared these expectations at the Investor Day just roughly 60 days ago, and we're executing against it. And we're not changing our plan now.

如果你願意的話，我們的傳統業務領域的同事們做得非常出色。我們的商業房地產在去年出現了相當大的下滑，但目前正趨於穩定，我們預計今年將實現穩定甚至適度的成長。所以一切都按計劃進行。大約 60 天前，我們在投資者日分享了這些期望，我們正在按照這些期望去執行。我們現在不會改變我們的計劃。

We will enforce, and we're going to continue to execute.

我們將嚴格執行，並將繼續執行。

Manan Gosalia, Morgan Stanley.

馬南‧戈薩利亞，摩根士丹利。

Steve, can you expand on what you're hearing on the ground from clients since April 2? What is the sentiment? What are they telling you? And what actions are they taking in this environment?

史蒂夫，您能否詳細說明一下自 4 月 2 日以來您從客戶那裡聽到的情況？是什麼情緒？他們告訴你什麼了？在這種環境下他們採取了什麼行動？

There's a wide range of issues, if you will, to talk about in this regard. I'll try to do it in a summary fashion. We have customers that are not reliant on imports or exports. If anything, they feel more bullish because there's less potential less competition, certainly, that's price competition as a result of the interim tariff activity. We've got a lot of trade that goes on between Canada and Mexico, that is exempt because of USMCA.

如果你願意的話，在這方面有很多問題可以討論。我將嘗試以總結的方式進行。我們的客戶不依賴進口或出口。如果有什麼不同的話，那就是他們感覺更加樂觀，因為潛在的競爭減少了，當然，這是臨時關稅活動導致的價格競爭。加拿大和墨西哥之間有很多貿易，由於 USMCA，這些貿易得到了豁免。

And so no effect if you'll recall the auto dealers did very, very well, some of their best years in a COVID environment where they had more margin on due and used as well. So there are pockets of real strength here. There are other areas, large distribution finance, for example, where there's some import restriction being developed through tariffs, and that utilization has dropped off a bit. I mentioned equipment finance, where some of what we finance gets imported and decisions to defer have been made. But again, a broad spectrum, there are winners not just losers.

因此，如果您還記得的話，汽車經銷商的表現非常非常好，在 COVID 環境下，他們表現最好的幾年是在這些年裡，他們在到期和二手車上都擁有更多的利潤。所以這裡確實存在著一些實力雄厚的群體。在其他領域，例如大型分銷融資，透過關稅制定了一些進口限制，利用率下降。我提到了設備融資，我們融資的一些設備是進口的，並且已經做出了推遲的決定。但從廣泛範圍來看，有贏家，而不只有輸家。

I think the headlines suggest well everybody is impacted and in a negative way, that is not the case. There are a number of businesses that are going to do very well. And as you know, we have a very broadly diversified portfolio. So we'll have those that are going to be winners and some others that will be temporarily impacted.

我認為新聞標題表明每個人都受到了負面影響，但事實並非如此。有許多企業將會表現得非常好。如您所知，我們的投資組合非常多元化。因此，我們會有一些人成為贏家，而有些人則會受到暫時的影響。

Very helpful. And then maybe as a follow-up, you saw a pretty strong loan growth this quarter. You noted that you would have increased the guide in normal circumstances. But then you also said you're not really expecting a drop-off in loan growth in the second quarter. So your guide would then imply a pretty meaningful slowdown in loan growth in the second half of the year relative to what you're seeing right now?

非常有幫助。然後也許作為後續，您會看到本季貸款成長相當強勁。您指出，在正常情況下您會增加指南。但您也表示，您並不真正預期第二季貸款成長會下降。那麼，您的指導意見是否意味著，相對於目前的情況，下半年的貸款成長將出現相當顯著的放緩？

So are you just being more conservative here? And if not, what would cause you to pull back on loan growth in this environment?

那麼，您只是在這裡變得更加保守了嗎？如果不是，那麼在這種環境下什麼原因會導致你們抑制貸款成長？

We have had an aggregate moderate to low risk appetite for decades. That hasn't changed, and that's not going to change. So we'll run the company with that in mind. It's our policies, our credit processes, et cetera. And we will be consistent in generating new business.

幾十年來，我們整體上的風險偏好一直處於中等至低水平。這一點沒有改變，也不會改變。因此，我們會牢記這一點來經營公司。這是我們的政策、我們的信用流程等等。我們將不斷開拓新業務。

We're being a bit cautious with that second half guidance and hopefully, overly cautious because this could be an exceptional year. We've got a very strong start. We'll comp in the second quarter. If things come together with the individual tariff negotiations with a variety of countries, I think we'll have an opportunity to beat that guide.

我們對下半年的預測有些謹慎，希望過度謹慎，因為這可能是不平凡的一年。我們的開局非常強勁。我們將在第二季進行補償。如果與多個國家的單獨關稅談判能夠順利進行，我認為我們將有機會超越這項指導方針。

John Arfstrom, RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的約翰‧阿夫斯特羅姆 (John Arfstrom)。

Echo that on Tim, nice job. Thanks for everything. Steve, where are you the most focused right now in terms of risk management? You have obviously a strong record historically in risk. But what are you telling your teams to kind of double and triple check at this point?

贊同蒂姆的觀點，幹得好。謝謝你的一切。史蒂夫，在風險管理方面，您現在最關注什麼？你們在風險應對方面顯然有著良好的歷史記錄。但此時您要告訴您的團隊要再三檢查什麼呢？

Well, thanks for the question. My -- most of my career early on was in risk and credit risk specifically. So we are -- we've been very, very diligent on portfolio management now for a number of years, and we will continue to do that. But the things stale information things that might reflect some challenge with our customers, our view is we're here to support our customers. And so if there's bad news, we want to hear it, and we want to be in a position to help them get through it.

嗯，謝謝你的提問。我早期的職業生涯主要涉及風險，特別是信用風險。所以，我們多年來一直非常勤勉地進行投資組合管理，並且我們將繼續這樣做。但陳舊的資訊可能反映出我們的客戶面臨的一些挑戰，我們的觀點是我們在這裡為客戶提供支援。因此，如果有壞消息，我們願意聽到，並且希望能夠幫助他們渡過難關。

And so it's a very constructive view and that's both consumers and business. And so there's an active outreach effort, if you will, that with an extra alert around the environment that we're emphasizing. There's no one particular portfolio of unique focus. I would say the portfolio management efforts are and have been broad-based and will continue. And as we get more capabilities in terms of data and use of data.

因此，這是一個非常有建設性的觀點，對消費者和企業都是如此。因此，如果你願意的話，我們會採取積極的外展努力，並對我們所強調的環境發出額外的警報。沒有一個特定的投資組合具有獨特的焦點。我想說的是，投資組合管理工作現在是、現在是、並且一直是廣泛的，並且將繼續下去。隨著我們在數據和數據使用方面的能力不斷增強。

Think of what's coming with Generative AI. We'll do more and more inquiry and review.

想想生成式人工智慧將會帶來什麼。我們將進行越來越多的調查和審查。

Okay. Good. That's good. And then, Zach, for you, just on the noninterest income guide for modest growth sequentially. It looks like in your materials, you're pointing to the year-over-year growth rates.

好的。好的。那挺好的。然後，扎克，為您介紹非利息收入按順序適度增長的指南。看起來，在您的材料中，您指的是同比增長率。

And I'm just curious how you want us to think about that modest growth. And I guess I'm particularly interested in capital markets and what kind of a bounce back you expect there?

我只是好奇您希望我們如何看待這種適度的成長。我想我對資本市場特別感興趣，您預計那裡會出現什麼樣的反彈？

Yeah. Great question, John. Just in the area of fees, I will note that we feel really, really good about the strategy and where this is going over the moderate term, 11% year-over-year growth in those key fee areas of focus, payments, wealth management, capital markets is in line with what we discussed at Investor Day and just the underlying trends there look exceptionally good. As you go into Q2, we are expecting to be higher quarter to quarter, as I noted. The amount of that will be a function of kind of where we land in the equity market levels to some degree, that affects our wealth management income and cap markets.

是的。問得好，約翰。僅在費用方面，我要指出的是，我們對該策略感到非常非常滿意，並且從中期來看，這些重點費用領域、支付、財富管理、資本市場同比增長 11%，這與我們在投資者日討論的內容一致，而且那裡的潛在趨勢看起來非常好。正如我所說，進入第二季度，我們預計季度將比成長率更高。其金額在某種程度上取決於我們在股票市場中的位置，這會影響我們的財富管理收入和資本市場。

What's interesting in the cap market space, I think we've discussed this in before, about 2/3 of that business is commercial loan production related. And we are expecting to have a solid quarter of growth in commercial loan production, and that should flow through the market activities. We noted in the presentation that the strength in risk management activities, for example, and loan syndication. So that should continue -- we should see that continue to track higher. Obviously, M&A advisory is the one that is the most sensitive probably of any of our businesses to uncertainty.

資本市場領域有趣的是，我想我們之前已經討論過這個問題，其中大約 2/3 的業務與商業貸款生產有關。我們預計商業貸款產量將在本季度穩健成長，這將推動市場活動的發展。我們在演示中指出了風險管理活動（例如銀團貸款）的優勢。因此這種情況應該會持續下去——我們應該看到它繼續走高。顯然，併購諮詢可能是我們所有業務中對不確定性最敏感的業務。

And we did come into Q1, expecting to have a somewhat stronger Q1 than it ultimately came to pass. We saw some delays of deal-making activity. And I think that's going to be, to some degree, what happens there a function of how this uncertainty in the economy resolves. If I talk to our M&A adviser team, they're still pretty bullish on the year, I will say. I mean the pipeline looks good, looks not only good in terms of size, but in terms of quality, the companies that and are very high quality and should be able to transact.

我們確實進入了第一季度，並預計第一季的表現會比最終的結果更強勁一些。我們發現交易活動有所延遲。我認為，從某種程度上來說，這將取決於經濟不確定性如何解決。如果我與我們的併購顧問團隊交談，我會說他們對今年仍然非常樂觀。我的意思是，管道看起來不錯，不僅在規模方面看起來不錯，而且在品質方面也不錯，這些公司品質非常高，應該能夠進行交易。

And to some degree, it's just going to come down to things closing a couple of weeks before the quarter or potentially pushing it out to the next. So I do expect to see growth. And so I pull back maybe lastly, John, to answer the question you didn't ask, but it's related in that fee guide of 4% to 6%, I think the biggest puts and takes for us that will push us to the top end versus the bottom of that range is really that M&A advisory world, what happens with cap markets. And so that will be what we have to watch here. But strategically, the team are executing exceptionally well and that we've got some of these trends behind us.

從某種程度上來說，這只不過是在本季前幾週結束的事情，或者可能將其推遲到下一個季度。所以我確實希望看到成長。所以，約翰，也許最後我要回答你沒有問到的問題，但它與 4% 到 6% 的費用指南有關，我認為對我們來說，最大的利弊將推動我們走向高端而不是低端，這實際上是併購諮詢領域，資本市場會發生什麼。這就是我們在這裡需要關注的。但從策略上來說，團隊的執行非常出色，而且我們已經掌握了一些趨勢。

Jon, just to add a bit, we had a record number of caps on a record number of initiatives in the first quarter. So the year is set up very well. Obviously, current activities will cause some delay, but this could be a very strong capital market share for us on the IB side as well.

喬恩，補充一點，我們在第一季對創紀錄數量的舉措實施了限制。所以今年的安排非常好。顯然，目前的活動會造成一些延遲，但這對我們 IB 方面來說也可能是非常強大的資本市場份額。

David Long, Raymond James.

大衛朗、雷蒙詹姆斯。

I understand that the credit market -- the credit metrics for you guys look real good right now. But specifically, what is the -- what has the uncertain backdrop impact been on your quantitative CECL model and overall reserve levels?

我了解信貸市場——你們的信貸指標現在看起來非常好。但具體來說，不確定的背景對您的定量 CECL 模型和整體儲備水準有何影響？

David, this is Brendan. I'll take that. first of all, we've modeled many scenarios as we try to come up with the reserve on a quarterly basis as we think about the economic environment in the component of it, we would -- we're a Moody's shop and so we use a baseline scenario, a somewhat positive scenario, which at this point doesn't look much different than the baseline scenario. And then we also incorporate a downside scenario. We will wait the output that comes out of our modeling to drive the quantitative.

大衛，這是布倫丹。我接受。首先，我們在嘗試按季度提出儲備金時模擬了許多情景，因為我們考慮了其中的經濟環境，我們會 - 我們是穆迪公司，因此我們使用基線情景，一種有點積極的情景，目前看起來與基線情景沒有太大區別。然後我們也會納入不利的情況。我們將等待建模的輸出來推動量化。

And what we've seen over the last quarter is that as the scenarios for Moody's have softened, we have seen much more of the risk being picked up through the quantitative modeling that we've done. And so that's where we then will step in and provide the qualitative side of it to get to the strong reserve coverage that we have posted and been pretty consistent with. So I feel really good about the position we're sitting in at this point. And we look forward to -- as this evolves, we'll reevaluate every quarter through that same lens.

我們在上個季度看到的是，隨著穆迪的預測情境變得溫和，我們透過所做的量化模型發現風險大大增加。因此，我們將介入並提供定性方面的幫助，以達到我們已經發布並一直保持的強勁儲備覆蓋率。所以我對我們目前所處的地位感到非常滿意。我們期待——隨著事態的發展，我們將透過同樣的視角重新評估每個季度。

David, as you'll recall, we have typically top tier or even best in all the DFAST prior tests. So there's a consistency in terms of stress credit risk within the portfolio. It's one of the reasons for the last 15 years that we released quarterly data on the consumer book. and that those trends are consistent now for that period of time. If anything, they've actually become a bit more conservative over time.

大衛，你應該還記得，在 DFAST 的所有先前測試中，我們的成績通常都名列前茅，甚至最好。因此，投資組合內的壓力信用風險具有一致性。這也是我們過去 15 年發布消費者帳簿季度數據的原因之一，而這些趨勢在那段時間內是一致的。如果有什麼不同的話，那就是隨著時間的推移，他們實際上變得更加保守了。

So we feel very good about the credit foundation within the company and optimistic about the future performance. The modeling we do would reflect that.

因此，我們對公司內部的信用基礎感到非常滿意，並對未來的表現感到樂觀。我們所做的建模將反映這一點。

Got it. Second thing that I wanted to ask about was, what does the pipeline look like for continuing to build out in the Carolinas and Texas and the newer verticals as well as are there any new geographies or new verticals planned for the rest of the year?

知道了。我想問的第二件事是，在卡羅來納州和德克薩斯州以及較新的垂直行業繼續建設的管道情況如何，以及今年剩餘時間是否有任何新的地區或新的垂直行業的計劃？

As we announced at the Investor Day, we expect to add one to two new verticals every year. We had an accelerated effort early on, but we do expect to add verticals this year. And I think it was last September, we announced we were planning to open 55 branches over five years in Carolinas. It looks like that will be closer to three, so that's a bit of acceleration, three years. And we're continuing to look to increase our capabilities in a variety of our markets.

正如我們在投資者日宣布的那樣，我們預計每年增加一到兩個新的垂直行業。我們早期就加快了努力，但我們確實希望今年能夠增加垂直領域。我想應該是去年九月，我們宣布計劃五年內在卡羅來納州開設 55 家分行。看起來會更接近三年，所以這有點加速，三年。我們將繼續尋求增強我們在各個市場的能力。

We're adding colleagues in Chicago, a substantial number of colleagues as an example. So we're pressing forward, building out the franchise in multiple ways, both preexisting and the newer aspects of it.

例如，我們正在增加芝加哥的同事，數量可觀。因此，我們正在繼續前進，透過多種方式打造特許經營權，包括現有方面和較新的方面。

Got it. So it sounds like you guys continue to play offense despite an increase in uncertainty in the economic backdrop?

知道了。所以聽起來儘管經濟背景的不確定性增加，你們仍繼續採取進攻措施？

Well, we are very cognizant of what's going on around us. We have contingent plans. We've got a range of of opportunities both on the expense and management side that are well laid out internally. So we and our Board know what we'll do under various scenarios. But we are going to continue to execute the plan.

嗯，我們非常清楚周遭發生的一切。我們有應急計劃。我們在費用和管理方面都擁有一系列內部已規劃好的機會。因此，我們和我們的董事會知道在各種情況下我們會做什麼。但我們將繼續執行該計劃。

We've delivered great growth. We are optimistic that we're going to get through this challenging period of uncertainty. And as the country is still in good shape, the economy in good shape, then we're going to move forward with it. There will be pockets of issues, no doubt. But that's why we have such a well-diversified and actively managed portfolio.

我們實現了巨大的成長。我們樂觀地相信，我們將度過這個充滿挑戰的不確定時期。由於國家狀況良好，經濟狀況良好，我們將繼續前進。毫無疑問，會出現一些問題。但這就是我們擁有如此多元化和積極管理的投資組合的原因。

Matt O'Connor, Deutsche Bank.

德意志銀行的馬特·奧康納。

I wanted to ask a question regarding slide 62, the criticized commercial loans. You guys are one of the few that give all this detail. And the credit overall is quite strong, but always looking for kind of early indicators of the inflection. And when I look at the upgrades to past, and the paydowns, they were both down a decent amount. I'm just wondering if you guys also view that as kind of like are early indicator of some short reflection?

我想問一個有關幻燈片 62 中受到批評的商業貸款的問題。你們是少數提供所有詳細資訊的人之一。整體而言，信貸狀況相當強勁，但總是在尋找拐點的早期指標。當我回顧過去的升級和償還情況時，我發現它們都下降了相當多的數額。我只是想知道你們是否也認為這是某種短暫反思的早期指標？

Or is it just a matter of seasonality, timing and things going to get so good? Or just elaborate on that chart because I thought it was pretty interesting.

或者這只是一個季節、時間和事情變得好起來的問題？或者只是詳細說明一下該圖表，因為我認為它非常有趣。

Sure, Matt. This is Brendan. I'll take that. We spent a lot of time talking about that as the quarter evolved, and really, what you're seeing pick up specifically in that line item of the upgrades to pass, there were several transactions that were slated to close as we got closer to the end of the month. of March that really just drifted into April, and they just didn't -- the refinancing or the support that they were bringing in.

當然，馬特。這是布倫丹。我會接受的。隨著季度的發展，我們花了很多時間討論這個問題，實際上，您看到的具體情況是，在升級通過的項目中，有幾筆交易計劃在接近月底時完成。 3 月份的交易實際上已經拖入 4 月份，而他們並沒有提供他們所引入的再融資或支援。

It drifted over into the first two weeks of the month. And so what we've seen is for the quarter, we had an 8% increase in crit-class overall. I'd say to you about 1/3 of that got picked up. Would -- if it had closed two weeks earlier would have been picked up in this number. So it was a little bit of timing, frankly, than anything else, and that's what gives us comfort that even the strong position that we're sitting in from here, I think we're going to -- we'll probably be flattish for the remainder of this year.

它持續到了本月的前兩週。因此，我們看到本季的 crit 等級整體成長了 8%。我想說其中大約有三分之一被採納了。如果它提前兩週關閉，就會被計入這個數字。所以坦白說，這比其他任何事情都更關鍵，這讓我們感到安慰，即使我們現在處於強勢地位，我認為我們今年剩餘的時間可能會持平。

As you know, Matt, we've come down very substantially over the last year. At some point, we'll plateau. I don't think we're at the plateau yet a little more bullish on our ability to manage the book than what Brendan just related, but it will plateau. And we don't believe we have significant loss content in the credit or class at this stage. Brendan and I review the top 50 every month and have confidence in that modest loss expectation.

馬特，正如你所知，去年我們的收入大幅下降。到了某個時候，我們就會達到穩定狀態。我認為我們還沒有達到穩定狀態，但對於我們管理這本書的能力，我比布倫丹剛才提到的要樂觀一些，但它會達到穩定狀態。我們認為，現階段我們的信貸或類別中不存在重大損失內容。布倫丹和我每個月都會回顧前 50 名，並且對適度的損失預期充滿信心。

Thank you for the question.

謝謝你的提問。

Ken Houston, Autonomous Research.

肯‧休斯頓，自主研究。

This is Ben on from Ken's team. Zach, a question for you. Can you just talk about how you expect the drag from the hedging program, the trajectory throughout the rest of the year just given this new rate curve? You got the 4-basis-point benefit to NIM this quarter. And then just how are you thinking of using that hedging program out into the rest of the year and out into the medium term just to manage the rate sensitivity of the bank, just given the volatility in the rate curve?

我是 Ken 團隊的 Ben。札克，​​問你一個問題。您能否談談，在新的利率曲線下，您如何預期對沖計畫的拖累以及今年剩餘時間的走勢？本季您的淨利息收益率 (NIM) 增加了 4 個基點。那麼，考慮到利率曲線的波動性，您打算如何在今年剩餘時間和中期內使用該對沖計劃來管理銀行的利率敏感性？

Yeah. You got it, Ben, excellent question. So in terms of hedging, maybe I'll answer your second one first, more strategically, how we think I'll come back to the nuances around the hedged trajectory. We've been very intentional coming through in the discussions we've had in the last several quarters of gradually reducing our asset sensitivity as rates reach their peak and as we now expect to have likely a down trajectory but still with a fair amount of uncertainty around whether that will happen and when. And so we think this sort of neutral positioning that we're at now is really very optimal.

是的。你明白了，本，這個問題問得非常好。因此，就對沖而言，也許我會先從策略角度回答你的第二個問題，我們認為我會如何回到對沖軌蹟的細微差別。在過去幾季的討論中，我們非常有意地表示，隨著利率達到峰值，我們將逐步降低資產敏感度，我們現在預計利率可能會呈下降趨勢，但對於是否會發生以及何時發生，仍然存在相當大的不確定性。因此，我們認為我們現在的這種中立定位確實非常理想。

It's our general expect now. I will say we look at it every single month, and we made it rigorously and we dynamically manage it, so it could change. But at this point, our posture is to maintain that neutrality through the end of this calendar year. As you go out into '26 at this point, less declarative, I would say, I'm expecting probably a regrowth in asset sensitivity as we go into 2026. But at this point, we've got a fair line of sight to the rest of this year and it's pretty neutral.

這是我們現在普遍的期望。我想說的是，我們每個月都會查看它，我們對其進行嚴格控制，並對其進行動態管理，因此它可能會發生變化。但目前，我們的立場是在今年年底前保持中立。當你進入 2026 年時，我想說的是，我預計隨著我們進入 2026 年，資產敏感度可能會重新增長。但目前，我們對今年剩餘時間的走勢已經有了相當清晰的認識，而且預測相當中性。

And that neutrality is really what kind of underlies the statements I made earlier, I think it was Erika, who asked us in terms of just the kind of the potential range of scenarios around there. We see a pretty flat NIM outcome within a few bps of the $3.07 run rate NIM we generated in Q1 for the rest of this year and then rising into next year and it's sort of supported by that neutral position. So now let me get to the trajectory this year. In the fourth quarter, last -- two quarters ago, we had an 8-basis-point drag from hedging. As we came into the first quarter, our guidance had indicated and actually what came to pass exactly was a 4-basis-point reduction of that. So it's a benefit of 4 bps in Q1, and it left us with a hedge drag of 4 bps in the quarter.

這種中立性實際上是我之前所作聲明的基礎，我認為是 Erika 向我們詢問了那裡可能出現的各種情況。我們預計，今年剩餘時間內的 NIM 結果將相當平穩，與我們在第一季產生的 3.07 美元運行率 NIM 相差幾個基點，然後到明年將會上升，這在某種程度上受到了中性立場的支撐。現在讓我來談談今年的發展軌跡。去年第四季度，也就是兩個季度前，我們因對沖而遭遇了 8 個基點的拖累。進入第一季時，我們的指導意見已經表明，實際上確實降低了 4 個基點。因此，第一季的收益為 4 個基點，而這給我們帶來了本季 4 個基點的對沖拖累。

Where we expect to get down to about neutral by the middle of this year, we could get back all 4 bps into Q2. It might be a little bit more leaking into Q3. We'll see it will be dependent on what really happens obviously with Fed fund actions here, but effectively neutral and then probably a little bit of drag coming back in by the end of the year.

我們預計到今年年中利率將降至中性水平，到第二季利率將恢復全部 4 個基點。到第三季可能會有更多洩漏。我們將看到，這將取決於聯邦基金行動的實際情況，但實際上是中性的，然後到年底可能會出現一點阻力。

If you take the implied forward from March 31, it will be something like 4 bps of drag by Q4 of '25. And so you can imagine in your mind's eye sort of a U shape, right, a 4 bps drag going down to roughly 0 and then going back up to 4.

如果從 3 月 31 日開始計算隱含值，那麼到 2025 年第四季度，拖累幅度將達到 4 個基點。因此，您可以在腦海中想像出一種 U 形，對吧，4 個基點的阻力下降到大約 0，然後又回升到 4。

So that's why I think about it just sort of the beginning of this year to the run rate exit of this year, it's about neutral. It's not that much delta between that. But again, if rates are different. We'll see obviously a different result there. Just if I share one last one with you.

所以這就是為什麼我認為從今年年初到今年年底的運行率是中性的。這兩者之間的差異並不大。但同樣，如果利率不同。我們顯然會看到不同的結果。我只想和你們分享最後一個。

You look out it looks about flat to that 4%, maybe even reducing a little bit as you go out from there. So I think most of the action will occur this year and then it will be about neutrals as we go out into '26.

你看，它看起來與 4% 持平，甚至可能從那裡開始減少一點。因此我認為大部分行動將在今年發生，然後進入 26 年時將保持中立。

Ladies and gentlemen, we've reached the end of the question-and-answer session. I'd like to turn the call back to Mr. Steve Steinour for closing remarks.

女士們、先生們，問答環節已經結束。我想請史蒂夫·施泰諾先生作最後發言。

Thank you for joining us today. In closing, our teams continue to deliver exceptional results, highlighted by our leading loan to deposit growth and PPNR growth. Looking forward into 2025, while the economic outlook is less certain, we have momentum, and we feel confident in our strategy. We have experienced management teams and contingency playbooks to deploy to manage through various economic scenarios. We've never been better positioned.

感謝您今天加入我們。最後，我們的團隊繼續取得卓越的成果，其中最突出的是我們的領先貸款存款成長和 PPNR 成長。展望2025年，雖然經濟前景不太確定，但我們仍保持發展勢頭，對我們的戰略充滿信心。我們擁有經驗豐富的管理團隊和應急方案，可以應付各種經濟狀況。我們從未處於如此有利的地位。

We've never been better positioned, and we're confident in our ability to continue to drive outperformance. So finally, thank you to the nearly 20,000 Huntington colleagues. We would not be able to take care of our customers and drive this level of performance, outstanding performance, without your efforts. Thank you for your interest in Huntington today. Have a great one.

我們從未處於如此有利的地位，我們有信心繼續取得優異的業績。最後，感謝近 20,000 名亨廷頓同事。如果沒有您的努力，我們就無法照顧好我們的客戶並實現這種水準的卓越表現。感謝您今天對亨廷頓的關注。祝你一切順利。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。現在您可以斷開線路。感謝您的參與。