Huntington Bancshares (HBAN) risk factors, 2025 10-K

Other

1. 01In addition to the other information included or incorporated by reference into this report, readers should carefully consider that the following important factors, among others, could negatively impact our business, future results of operations, and future cash flows materially
2. 02Our 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. 03Weakness in economic conditions could adversely affect our business
4. 0428 Huntington Bancshares Incorporated
5. 05Changes 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
6. 06Inflation could negatively impact our business, our profitability, and our stock price
7. 07Industry competition may have an adverse effect on our success
8. 08Liquidity is the ability to meet cash flow needs on a timely basis at a reasonable cost. The Bank uses its liquidity to extend credit and to repay liabilities as they become due or as demanded by customers
9. 09We are a holding company and depend on dividends by our subsidiaries for liquidity needs
10. 10If 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
11. 11We may, from time-to-time, consider using our existing liquidity position to opportunistically retire outstanding securities in privately negotiated or open market transactions
12. 12A reduction in our credit rating could adversely affect our access to capital and could increase our cost of funds
13. 13Instability 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
14. 14Our 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
15. 1532 Huntington Bancshares Incorporated
16. 1634 Huntington Bancshares Incorporated
17. 17We face significant operational risks which could lead to financial loss, expensive litigation, and loss of confidence by our customers, regulators, and capital markets
18. 18Failure 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
19. 19We rely on quantitative models to measure risks and to estimate certain financial values
20. 20We rely on third parties to provide key components of our business infrastructure
21. 21Changes in accounting policies, standards, and interpretations could affect how we report our financial condition and results of operations
22. 22Impairment of goodwill could require charges to earnings, which could result in a negative impact on our results of operations
23. 23Climate change manifesting as physical or transition risks could adversely affect our operations, businesses, and customers
24. 24We use AI in connection with our business and operations, which exposes us to inherent risks that may expose us to material harm
25. 25We 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
26. 2638 Huntington Bancshares Incorporated
27. 27The resolution of significant pending litigation, if unfavorable, could have an adverse effect on our results of operations for a particular period
28. 28Noncompliance with the Bank Secrecy Act and other anti-money laundering statutes and regulations could cause us material financial loss
29. 29Cybersecurity and data privacy are areas of heightened legislative and regulatory focus
30. 3040 Huntington Bancshares Incorporated
31. 31We 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
32. 32We 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
33. 33Damage to our reputation could significantly harm our business, including our competitive position and business prospects