Huntington Bancshares (HBAN) risk factors: FY2025 10-K

1. Credit Risks:
2. Our ACL level may prove to not be adequate or be negatively affected by credit risk exposures, which could adversely affect our net income and capital.
3. Weakness in economic conditions could adversely affect our business.
4. Our emphasis on commercial lending may expose us to increased lending risks.new
5. Market Risks:
6. Changes in interest rates could reduce our net interest income, reduce transactional income, and negatively impact the value of our loans, securities, and other assets. This could have an adverse impact on our cash flows, financial condition, results of operations, and capital.Interest rates
7. Inflation could negatively impact our business, our profitability, and our stock price.
8. Industry competition may have an adverse effect on our success.
9. Liquidity Risks:
10. Changes in Huntington’s financial condition or in the general banking industry, or changes in interest rates, could result in a loss of depositor confidence.Interest rates
11. We are a holding company and depend on dividends from our subsidiaries for liquidity needs.reworded
12. If we lose access to capital markets, we may not be able to meet the cash flow requirements of our depositors, creditors, and borrowers, or have the operating cash needed to fund corporate expansion and other corporate activities.
13. A reduction in our credit rating could adversely affect our access to capital and could increase our cost of funds.
14. Instability in global economic conditions and geopolitical matters, as well as volatility in financial markets, could have a material adverse effect on our results of operations and financial condition.
15. Operational Risks:
16. Our operational or security systems or infrastructure, or those of third parties, could fail or be breached, which could disrupt our business and adversely impact our operations, liquidity, and financial condition, as well as cause legal or reputational harm.
17. We face risks from cyber-attacks and other information or security breaches, including denial of service attacks, hacking, social engineering attacks targeting our colleagues, contractors, and customers, malware intrusion or data corruption attempts, and identity theft that could result in the disclosure of confidential, proprietary, personal and other information, any of which could adversely affect our business or reputation, and create significant legal and financial exposure.Cybersecurity
18. We face significant operational risks which could lead to financial loss, expensive litigation, and loss of confidence by our customers, regulators, and capital markets.
19. We grow our business in part by acquiring, from time to time, other financial services businesses and businesses with technologies or other assets valuable to us. Acquisitions present several risks and uncertainties related both to the acquisition transactions themselves and to the integration of the acquired businesses into Huntington after closing.new
20. Failure to maintain effective internal controls over financial reporting could impair our ability to accurately and timely report our financial results or prevent fraud, resulting in loss of investor confidence and adversely affecting our business and our stock price.
21. We rely on quantitative models to measure risks and to estimate certain financial values.
22. We rely on third parties to provide key components of our business infrastructure.
23. Changes in accounting policies, standards, and interpretations could affect how we report our financial condition and results of operations.
24. Impairment of goodwill could require charges to earnings, which could result in a negative impact on our results of operations.
25. Climate change manifesting as physical or transition risks could adversely affect our operations, businesses, and customers.
26. We use AI in connection with our business and operations, which exposes us to inherent risks that may expose us to material harm.AI
27. Compliance Risks:
28. We operate in a highly regulated industry, and the laws and regulations that govern our operations, corporate governance, executive compensation and financial accounting, or reporting, including changes in them, or our failure to comply with them, may adversely affect us and our business model.
29. Legislative and regulatory actions taken now or in the future that impact the financial industry may materially adversely affect us by increasing our costs, adding complexity in doing business, impeding the efficiency of our internal business processes, negatively impacting the recoverability of certain of our recorded assets, requiring us to increase our regulatory capital, limiting our ability to pursue business opportunities, and otherwise resulting in a material adverse impact on our financial condition, results of operation, liquidity, or stock price.
30. The resolution of significant pending litigation, if unfavorable, could have an adverse effect on our results of operations for a particular period.
31. Noncompliance with the Bank Secrecy Act and other anti-money laundering statutes and regulations could cause us material financial loss.
32. Cybersecurity and data privacy are areas of heightened legislative and regulatory focus.Cybersecurity
33. Strategic Risks:
34. We operate in a highly competitive industry which depends on our ability to successfully execute our strategic plan and adapt our products and services to evolving industry standards and consumer preferences.
35. We depend on our executive officers and key personnel to continue the implementation of our long-term business strategy and could be harmed by the loss of their services.
36. Bank regulations regarding capital and liquidity, including the CCAR assessment process and the U.S. Basel III capital and liquidity standards, could require higher levels of capital and liquidity. Among other things, these regulations could impact our ability to pay common stock dividends, repurchase common stock, attract cost-effective sources of deposits, or require the retention of higher amounts of low yielding securities.
37. Reputational Risk:new
38. Damage to our reputation could significantly harm our business, including our competitive position and business prospects.
39. Cadence Merger Risks:new
40. We are expected to incur substantial costs related to the Cadence Merger and integration.new
41. Combining Huntington and Cadence may be more difficult, costly or time consuming than expected and Huntington and Cadence may fail to realize the anticipated benefits of the Cadence Merger.new
42. The future results of the combined company following the Cadence Merger may suffer if the combined company does not effectively manage its expanded operations.new
43. The combined company may be unable to retain Huntington or Cadence personnel successfully.new

Read these in Item 1A · See the changes

Headings in the FY2024 10-K with no match this year.

1. Reputation Risk: