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Huntington Bancshares Incorporated (HBAN - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 37 cents, which surpassed the Zacks Consensus Estimate of 36 cents. In the prior-year quarter, the company reported EPS of 34 cents.
Shares of HBAN gained nearly 1.2% in the early trading session on better-than-expected results. A full day’s trading session will provide a clearer picture.
Results reflected improvements in net interest income (NII) and non-interest income. Also, an increase in loan and deposit balances was a tailwind. However, an increase in non-interest expenses and higher provisions acted as a spoilsport.
The result excluded 12 cents per share of the after-tax impact of notable Items. After considering this, the net income attributable to common shareholders (GAAP basis) was $523 million in the quarter, which decreased from $527 million reported in the prior-year quarter.
HBAN’s Revenues & Expenses Increase
Total quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 34% year over year to $2.59 billion in the first quarter. The top line missed the Zacks Consensus Estimate of $2.60 billion.
NII (FTE basis) was $1.91 billion, up 33% from the prior-year quarter’s tally. The increase was primarily driven by higher average earning assets and an expansion in net interest margin (NIM). NIM rose 14 basis points year over year to 3.24%.
Non-interest income climbed 38% year over year to $682 million. The upside was driven by a rise in almost all the components of non-interest income except leasing revenue.
Non-interest expenses surged 54% year over year to $1.77 billion. The rise was mainly due to an increase in almost all cost components, except deposit and other insurance expenses and lease financing equipment depreciation.
The efficiency ratio was 67.2%, up from 58.9% in the year-ago quarter. An increase in the efficiency ratio indicates lower profitability.
HBAN’s Loans and Deposits Increase
As of March 31, 2026, average loans and leases at Huntington rose 19% sequentially to $174.2 billion. Average total deposits increased 18% sequentially to $204.6 billion.
HBAN’s Credit Quality Deteriorates
Net charge-offs were $111 million, up from $86 million reported in the prior-year quarter. The quarter-end allowance for credit losses increased to $3.37 billion from $2.48 billion in the prior-year quarter. Total non-performing assets were $1.36 billion as of March 31, 2026, up from $804 million in the prior-year quarter.
Net charge-offs/average total loans and leases were 0.26%, unchanged year over year.
In the first quarter, the company recorded a provision for credit losses of $158 million, which increased 37% from the year-ago quarter.
HBAN’s Capital Ratios: Mixed Bag
The common equity tier 1 (CET1) risk-based capital ratio was 10.2% in the first quarter, down from 10.6% in the year-ago period.
The regulatory Tier 1 risk-based capital ratio was 11.6%, down from 11.9% in the comparable period in 2025.
The tangible common equity to tangible assets ratio was 7.0%, up from 6.3% in the year-ago quarter.
HBAN’s Share Repurchase Update
During the first quarter, Huntington repurchased $150 million of common shares. Additionally, the company’s board approved a new $3 billion share repurchase authorization, replacing the prior program.
HBAN’s Recent Developments
In February 2026, Huntington completed its previously announced $7.4 billion all-stock acquisition of Cadence Bank, expanding its presence across 21 states and strengthening its scale in Texas and other high-growth markets in the southern United States. The deal also positions HBAN as the eighth-largest bank in Texas and the leading bank in Mississippi by deposit market share.
Following the completion, Cadence’s 390 branches expanded Huntington’s network to nearly 1,400 locations across 21 states, spanning the Midwest, Texas and the South. Further, Cadence accounts are expected to be converted to HBAN’s systems in June 2026. Previously, in October 2025, the company completed its $1.9 billion all-stock merger with Veritex Holdings Inc., strengthening its presence in key Texas markets, with the integration finalized on Jan. 19, 2026.
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 first-quarter 2026 earnings per share of 53 cents, surpassing the Zacks Consensus Estimate of 49 cents. This compares favorably with 42 cents in the year-ago quarter.
FHN’s results benefited from higher net interest income and a rise in non-interest income, along with improved credit quality. However, the rise in expenses remains a headwind.
M&T Bank Corporation (MTB - Free Report) reported first-quarter 2026 net operating earnings per share of $4.18, which beat the Zacks Consensus Estimate of $4.02. The bottom line compared favorably with earnings of $3.38 per share in the year-ago quarter.
The results of MTB were aided by higher net interest income and a rise in non-interest income on a year-over-year basis, along with modest loan growth. However, a decline in deposits, higher provisions for credit losses, and elevated expenses acted as headwinds.
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Huntington Stock Gains as Q1 Earnings Top on Higher NII & Fee Income
Key Takeaways
Huntington Bancshares Incorporated (HBAN - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 37 cents, which surpassed the Zacks Consensus Estimate of 36 cents. In the prior-year quarter, the company reported EPS of 34 cents.
Shares of HBAN gained nearly 1.2% in the early trading session on better-than-expected results. A full day’s trading session will provide a clearer picture.
Results reflected improvements in net interest income (NII) and non-interest income. Also, an increase in loan and deposit balances was a tailwind. However, an increase in non-interest expenses and higher provisions acted as a spoilsport.
The result excluded 12 cents per share of the after-tax impact of notable Items. After considering this, the net income attributable to common shareholders (GAAP basis) was $523 million in the quarter, which decreased from $527 million reported in the prior-year quarter.
HBAN’s Revenues & Expenses Increase
Total quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 34% year over year to $2.59 billion in the first quarter. The top line missed the Zacks Consensus Estimate of $2.60 billion.
NII (FTE basis) was $1.91 billion, up 33% from the prior-year quarter’s tally. The increase was primarily driven by higher average earning assets and an expansion in net interest margin (NIM). NIM rose 14 basis points year over year to 3.24%.
Non-interest income climbed 38% year over year to $682 million. The upside was driven by a rise in almost all the components of non-interest income except leasing revenue.
Non-interest expenses surged 54% year over year to $1.77 billion. The rise was mainly due to an increase in almost all cost components, except deposit and other insurance expenses and lease financing equipment depreciation.
The efficiency ratio was 67.2%, up from 58.9% in the year-ago quarter. An increase in the efficiency ratio indicates lower profitability.
HBAN’s Loans and Deposits Increase
As of March 31, 2026, average loans and leases at Huntington rose 19% sequentially to $174.2 billion. Average total deposits increased 18% sequentially to $204.6 billion.
HBAN’s Credit Quality Deteriorates
Net charge-offs were $111 million, up from $86 million reported in the prior-year quarter. The quarter-end allowance for credit losses increased to $3.37 billion from $2.48 billion in the prior-year quarter. Total non-performing assets were $1.36 billion as of March 31, 2026, up from $804 million in the prior-year quarter.
Net charge-offs/average total loans and leases were 0.26%, unchanged year over year.
In the first quarter, the company recorded a provision for credit losses of $158 million, which increased 37% from the year-ago quarter.
HBAN’s Capital Ratios: Mixed Bag
The common equity tier 1 (CET1) risk-based capital ratio was 10.2% in the first quarter, down from 10.6% in the year-ago period.
The regulatory Tier 1 risk-based capital ratio was 11.6%, down from 11.9% in the comparable period in 2025.
The tangible common equity to tangible assets ratio was 7.0%, up from 6.3% in the year-ago quarter.
HBAN’s Share Repurchase Update
During the first quarter, Huntington repurchased $150 million of common shares. Additionally, the company’s board approved a new $3 billion share repurchase authorization, replacing the prior program.
HBAN’s Recent Developments
In February 2026, Huntington completed its previously announced $7.4 billion all-stock acquisition of Cadence Bank, expanding its presence across 21 states and strengthening its scale in Texas and other high-growth markets in the southern United States. The deal also positions HBAN as the eighth-largest bank in Texas and the leading bank in Mississippi by deposit market share.
Following the completion, Cadence’s 390 branches expanded Huntington’s network to nearly 1,400 locations across 21 states, spanning the Midwest, Texas and the South. Further, Cadence accounts are expected to be converted to HBAN’s systems in June 2026. Previously, in October 2025, the company completed its $1.9 billion all-stock merger with Veritex Holdings Inc., strengthening its presence in key Texas markets, with the integration finalized on Jan. 19, 2026.
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 seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
First Horizon Corporation (FHN - Free Report) posted first-quarter 2026 earnings per share of 53 cents, surpassing the Zacks Consensus Estimate of 49 cents. This compares favorably with 42 cents in the year-ago quarter.
FHN’s results benefited from higher net interest income and a rise in non-interest income, along with improved credit quality. However, the rise in expenses remains a headwind.
M&T Bank Corporation (MTB - Free Report) reported first-quarter 2026 net operating earnings per share of $4.18, which beat the Zacks Consensus Estimate of $4.02. The bottom line compared favorably with earnings of $3.38 per share in the year-ago quarter.
The results of MTB were aided by higher net interest income and a rise in non-interest income on a year-over-year basis, along with modest loan growth. However, a decline in deposits, higher provisions for credit losses, and elevated expenses acted as headwinds.