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HBAN posted 11.3% revenue growth, with NII up 14.2% and loans and deposits rising sequentially.
Huntington Bancshares Incorporated (HBAN - Free Report) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 37 cents, which missed the Zacks Consensus Estimate of 39 cents. In the prior-year quarter, the company reported EPS of 34 cents.
Shares of HBAN lost nearly 2.8% in the early trading session. A full day’s trading session will provide a clearer picture.
Results were affected by an increase in non-interest expenses and higher provisions. However, a rise in net interest income (NII) and non-interest income, along with higher loan and deposit balances, supported the results to some extent.
The result excluded 7 cents per share of the after-tax impact of notable Items. After considering this, the net income attributable to common shareholders (GAAP basis) was $519 million in the quarter, which decreased from $530 million reported in the prior-year quarter.
For 2025, EPS was $1.39, which missed the Zacks Consensus Estimate of $1.49. This compares favorably with $1.22 reported in 2024. The company reported net income attributable to common shareholders (GAAP basis) of $2.21 billion, which increased 13.9% year over year.
HBAN’s Revenues & Expenses Increase
Total quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 11.3% year over year to $2.19 billion in the fourth quarter. The top line missed the Zacks Consensus Estimate of $2.20 billion.
Full-year revenues (on a fully taxable-equivalent or FTE basis) aggregated to $8.23 billion, which increased 10.7% year over year. The top line beat the Zacks Consensus Estimate of $8.21 billion.
NII (FTE basis) was $1.61 billion, up 14.2% from the prior-year quarter’s tally. The increase was primarily due to a rise in average earning assets and net interest margin (NIM). NIM jumped 12 basis points to 3.15% in the reported quarter.
Non-interest income moved up 4.1% year over year to $582 million.
Non-interest expenses increased 20.5% year over year to $1.42 billion. The rise was mainly due to an increase in almost all cost components, except equipment costs and deposit and other insurance expenses.
The efficiency ratio was 64.2%, up from the year-ago quarter’s 58.6%. An increase in the efficiency ratio indicates a decline in profitability.
HBAN’s Loans and Deposits Increase
As of Dec. 31, 2025, average loans and leases at Huntington inched up 7.8% sequentially to $146.6 billion. Average total deposits rose 5.1% sequentially to $173.2 billion.
HBAN’s Credit Quality: Mixed Bag
Net charge-offs were $89 million, down from $97 million reported in the prior-year quarter. The quarter-end allowance for credit losses increased 12.1% to $2.74 billion from the prior-year quarter. Total non-performing assets were $945 million as of Dec. 31, 2025, up 14.9% from the prior-year quarter.
Net charge-offs/average total loans and leases were 0.24%, down from 0.30% in the prior-year quarter.
In the fourth quarter, the company recorded a provision for credit losses of $123 million, which increased 14.9% from the year-ago quarter.
HBAN’s Capital Ratios: Mixed Bag
The common equity tier 1 risk-based capital ratio was 10.4% in the fourth quarter, down from 10.5% in the year-ago period.
The regulatory Tier 1 risk-based capital ratio was 12%, up from 11.9% in the comparable period in 2024.
The tangible common equity to tangible assets ratio in the fourth quarter was 7.1%, which increased from 6.1% in the year-ago quarter.
HBAN’s Recent Developments
Earlier this month, Huntington Bancshares secured regulatory and shareholder approvals for its previously announced $7.4 billion all-stock acquisition of Cadence Bank. The transaction is expected to close on Feb. 1, 2026, subject to customary closing conditions. Upon completion, the deal will expand Huntington’s presence across 21 states and strengthen its scale in several high-growth metropolitan markets across the southern United States.
In October 2025, the company completed its $1.9 billion all-stock merger with Veritex Holdings Inc. (Veritex), significantly strengthening its footprint in key Texas markets, including Dallas–Fort Worth and Houston. The integration was completed on Jan. 19, 2026, with Veritex now operating under the Huntington brand.
Our View on HBAN
Huntington’s inorganic expansion efforts are expected to support revenue growth in the near term. Also, its efforts to strengthen commercial banking capabilities and expand its presence in key growth markets, including North Carolina, South Carolina and Texas, will likely aid financial performance over the long run. However, rising expenses and elevated provisions remain concerns.
Huntington Bancshares Incorporated Price, Consensus and EPS Surprise
First Horizon Corporation (FHN - Free Report) posted fourth-quarter 2025 adjusted earnings per share of 52 cents, surpassing the Zacks Consensus Estimate of 47 cents. This compares favorably with 43 cents in the year-ago quarter.
Results benefited from higher NII and a significant rise in non-interest income, along with the absence of provision for credit losses. However, the increase in expenses remains a headwind for FHN.
M&T Bank Corporation (MTB - Free Report) reported fourth-quarter 2025 net operating earnings per share of $4.72, which beat the Zacks Consensus Estimate of $4.44. The bottom line compared favorably with earnings of $3.92 per share in the year-ago quarter.
MTB's results were aided by higher non-interest income and a rise in NII on a year-over-year basis, along with modest loan growth and higher deposits. A decline in provisions for credit losses was also a tailwind. However, an increase in expenses acted as a headwind.
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Huntington Stock Falls as Q4 Earnings Lag Estimates, Expenses Rise Y/Y
Key Takeaways
Huntington Bancshares Incorporated (HBAN - Free Report) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 37 cents, which missed the Zacks Consensus Estimate of 39 cents. In the prior-year quarter, the company reported EPS of 34 cents.
Shares of HBAN lost nearly 2.8% in the early trading session. A full day’s trading session will provide a clearer picture.
Results were affected by an increase in non-interest expenses and higher provisions. However, a rise in net interest income (NII) and non-interest income, along with higher loan and deposit balances, supported the results to some extent.
The result excluded 7 cents per share of the after-tax impact of notable Items. After considering this, the net income attributable to common shareholders (GAAP basis) was $519 million in the quarter, which decreased from $530 million reported in the prior-year quarter.
For 2025, EPS was $1.39, which missed the Zacks Consensus Estimate of $1.49. This compares favorably with $1.22 reported in 2024. The company reported net income attributable to common shareholders (GAAP basis) of $2.21 billion, which increased 13.9% year over year.
HBAN’s Revenues & Expenses Increase
Total quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 11.3% year over year to $2.19 billion in the fourth quarter. The top line missed the Zacks Consensus Estimate of $2.20 billion.
Full-year revenues (on a fully taxable-equivalent or FTE basis) aggregated to $8.23 billion, which increased 10.7% year over year. The top line beat the Zacks Consensus Estimate of $8.21 billion.
NII (FTE basis) was $1.61 billion, up 14.2% from the prior-year quarter’s tally. The increase was primarily due to a rise in average earning assets and net interest margin (NIM). NIM jumped 12 basis points to 3.15% in the reported quarter.
Non-interest income moved up 4.1% year over year to $582 million.
Non-interest expenses increased 20.5% year over year to $1.42 billion. The rise was mainly due to an increase in almost all cost components, except equipment costs and deposit and other insurance expenses.
The efficiency ratio was 64.2%, up from the year-ago quarter’s 58.6%. An increase in the efficiency ratio indicates a decline in profitability.
HBAN’s Loans and Deposits Increase
As of Dec. 31, 2025, average loans and leases at Huntington inched up 7.8% sequentially to $146.6 billion. Average total deposits rose 5.1% sequentially to $173.2 billion.
HBAN’s Credit Quality: Mixed Bag
Net charge-offs were $89 million, down from $97 million reported in the prior-year quarter. The quarter-end allowance for credit losses increased 12.1% to $2.74 billion from the prior-year quarter. Total non-performing assets were $945 million as of Dec. 31, 2025, up 14.9% from the prior-year quarter.
Net charge-offs/average total loans and leases were 0.24%, down from 0.30% in the prior-year quarter.
In the fourth quarter, the company recorded a provision for credit losses of $123 million, which increased 14.9% from the year-ago quarter.
HBAN’s Capital Ratios: Mixed Bag
The common equity tier 1 risk-based capital ratio was 10.4% in the fourth quarter, down from 10.5% in the year-ago period.
The regulatory Tier 1 risk-based capital ratio was 12%, up from 11.9% in the comparable period in 2024.
The tangible common equity to tangible assets ratio in the fourth quarter was 7.1%, which increased from 6.1% in the year-ago quarter.
HBAN’s Recent Developments
Earlier this month, Huntington Bancshares secured regulatory and shareholder approvals for its previously announced $7.4 billion all-stock acquisition of Cadence Bank. The transaction is expected to close on Feb. 1, 2026, subject to customary closing conditions. Upon completion, the deal will expand Huntington’s presence across 21 states and strengthen its scale in several high-growth metropolitan markets across the southern United States.
In October 2025, the company completed its $1.9 billion all-stock merger with Veritex Holdings Inc. (Veritex), significantly strengthening its footprint in key Texas markets, including Dallas–Fort Worth and Houston. The integration was completed on Jan. 19, 2026, with Veritex now operating under the Huntington brand.
Our View on HBAN
Huntington’s inorganic expansion efforts are expected to support revenue growth in the near term. Also, its efforts to strengthen commercial banking capabilities and expand its presence in key growth markets, including North Carolina, South Carolina and Texas, will likely aid financial performance over the long run. However, rising expenses and elevated provisions remain concerns.
Huntington Bancshares Incorporated Price, Consensus and EPS Surprise
Huntington Bancshares Incorporated price-consensus-eps-surprise-chart | Huntington Bancshares Incorporated Quote
Currently, Huntington carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
First Horizon Corporation (FHN - Free Report) posted fourth-quarter 2025 adjusted earnings per share of 52 cents, surpassing the Zacks Consensus Estimate of 47 cents. This compares favorably with 43 cents in the year-ago quarter.
Results benefited from higher NII and a significant rise in non-interest income, along with the absence of provision for credit losses. However, the increase in expenses remains a headwind for FHN.
M&T Bank Corporation (MTB - Free Report) reported fourth-quarter 2025 net operating earnings per share of $4.72, which beat the Zacks Consensus Estimate of $4.44. The bottom line compared favorably with earnings of $3.92 per share in the year-ago quarter.
MTB's results were aided by higher non-interest income and a rise in NII on a year-over-year basis, along with modest loan growth and higher deposits. A decline in provisions for credit losses was also a tailwind. However, an increase in expenses acted as a headwind.