We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Huntington Q2 Earnings Match Estimates as NII & Fee Income Rise Y/Y
Read MoreHide Full Article
Key Takeaways
HBAN posted Q2'26 EPS of 39 cents, matching estimates and rising from 35 cents a year ago.
HBAN's NII rose 40% Y/Y, while non-interest income increased 67% Y/Y.
Higher expenses, provisions and non-performing assets remained key headwinds.
Huntington Bancshares Incorporated (HBAN - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of 39 cents, which matched the Zacks Consensus Estimate. In the prior-year quarter, the company reported EPS of 38 cents.
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 quarter’s results excluded 6 cents per share of the after-tax impact of acquisition-related expenses. After considering this, net income attributable to common shareholders (GAAP basis) was $727 million, up 36% year over year.
HBAN’s Revenues & Expenses Increase
Total quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 46% year over year to $2.86 billion in the second quarter. The top line surpassed the Zacks Consensus Estimate of $2.85 billion.
NII (FTE basis) was $2.07 billion, up 40% from the prior-year quarter’s tally. The increase reflected higher average earning assets and an expansion in net interest margin (NIM). NIM rose 10 basis points year over year to 3.21%.
Non-interest income climbed 67% year over year to $785 million. The upside was driven by increases in capital markets and advisory fees, payments and cash management revenues, customer deposit and loan fees, wealth and asset management revenues and mortgage banking income. The prior-year quarter also included a $58-million loss from the sale of certain investment securities.
Non-interest expenses surged 51% year over year to $1.81 billion. The rise was mainly due to increases in personnel costs, outside data processing and other services, net occupancy expenses, equipment costs and amortization of intangibles. Adjusted non-interest expenses increased 39% to $1.66 billion.
The efficiency ratio was 61.5%, up from 59% in the year-ago quarter. An increase in the efficiency ratio indicates lower profitability.
HBAN’s Loans and Deposits Increase
Average loans and leases at Huntington rose 9% sequentially to $189.3 billion. Growth was supported by the full-quarter impact of the Cadence acquisition and organic growth across corporate and specialty banking, asset finance and middle-market lending.
Average total deposits increased 9% sequentially to $223.4 billion. The rise was driven by the full-quarter impact of the Cadence acquisition and growth in demand, savings and time deposits.
HBAN’s Credit Quality Deteriorates
Net charge-offs were $119 million, up from $66 million reported in the prior-year quarter. The quarter-end allowance for credit losses increased to $3.38 billion from $2.52 billion in the year-ago quarter. Total non-performing assets were $1.61 billion as of June 30, 2026, up from $852 million in the prior-year quarter.
Net charge-offs as a percentage of average total loans and leases were 0.25%, up from 0.20% in the year-ago quarter.
In the second quarter, the company recorded a provision for credit losses of $132 million, up from $103 million in the year-ago quarter.
HBAN’s Capital Ratios: Mixed Bag
The common equity tier 1 (CET1) risk-based capital ratio was 10% in the second quarter, down from 10.5% in the year-ago period.
The regulatory Tier 1 risk-based capital ratio was 11.3%, down from 11.8% in the comparable period in 2025.
The tangible common equity to tangible assets ratio was 7.1%, up from 6.6% in the year-ago quarter.
HBAN’s Share Repurchase Update
During the second quarter, Huntington repurchased $159 million of common shares. The company repurchased $309 million, or approximately 19 million shares, in the first half of 2026.
Our View on HBAN
The company’s acquisitions and continued organic loan and deposit growth are likely to support revenues. In June 2026, Huntington successfully completed the systems conversion of Cadence Bank, marking the final major integration milestone. The company also realized $70 million of annualized run-rate expense savings in the second quarter from its October 2025 Veritex acquisition and expects the full earnings contribution from its recent acquisitions by the fourth quarter. The anticipated cost and revenue synergies are encouraging. However, elevated expenses and an increase in non-performing assets remain concerns.
Huntington Bancshares Incorporated Price, Consensus and EPS Surprise
First Horizon Corporation (FHN - Free Report) posted second-quarter 2026 earnings per share of 54 cents, surpassing the Zacks Consensus Estimate of 52 cents. This compares favorably with 45 cents in the year-ago quarter
FHN’s results benefited from higher NII and non-interest income, along with a lower provision for credit losses. Higher loan and deposit balances also provided support. However, rising expenses and weaker capital ratios were headwinds.
M&T Bank Corporation (MTB - Free Report) reported second-quarter 2026 net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 per share in the year-ago quarter.
MTB’s results were aided by higher NII and a rise in non-interest income on a year-over-year basis, along with loan growth. However, higher expenses acted as headwinds.
View the Zacks #1 Rank List
Image: Bigstock
Huntington Q2 Earnings Match Estimates as NII & Fee Income Rise Y/Y
Key Takeaways
Huntington Bancshares Incorporated (HBAN - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of 39 cents, which matched the Zacks Consensus Estimate. In the prior-year quarter, the company reported EPS of 38 cents.
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 quarter’s results excluded 6 cents per share of the after-tax impact of acquisition-related expenses. After considering this, net income attributable to common shareholders (GAAP basis) was $727 million, up 36% year over year.
HBAN’s Revenues & Expenses Increase
Total quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 46% year over year to $2.86 billion in the second quarter. The top line surpassed the Zacks Consensus Estimate of $2.85 billion.
NII (FTE basis) was $2.07 billion, up 40% from the prior-year quarter’s tally. The increase reflected higher average earning assets and an expansion in net interest margin (NIM). NIM rose 10 basis points year over year to 3.21%.
Non-interest income climbed 67% year over year to $785 million. The upside was driven by increases in capital markets and advisory fees, payments and cash management revenues, customer deposit and loan fees, wealth and asset management revenues and mortgage banking income. The prior-year quarter also included a $58-million loss from the sale of certain investment securities.
Non-interest expenses surged 51% year over year to $1.81 billion. The rise was mainly due to increases in personnel costs, outside data processing and other services, net occupancy expenses, equipment costs and amortization of intangibles. Adjusted non-interest expenses increased 39% to $1.66 billion.
The efficiency ratio was 61.5%, up from 59% in the year-ago quarter. An increase in the efficiency ratio indicates lower profitability.
HBAN’s Loans and Deposits Increase
Average loans and leases at Huntington rose 9% sequentially to $189.3 billion. Growth was supported by the full-quarter impact of the Cadence acquisition and organic growth across corporate and specialty banking, asset finance and middle-market lending.
Average total deposits increased 9% sequentially to $223.4 billion. The rise was driven by the full-quarter impact of the Cadence acquisition and growth in demand, savings and time deposits.
HBAN’s Credit Quality Deteriorates
Net charge-offs were $119 million, up from $66 million reported in the prior-year quarter. The quarter-end allowance for credit losses increased to $3.38 billion from $2.52 billion in the year-ago quarter. Total non-performing assets were $1.61 billion as of June 30, 2026, up from $852 million in the prior-year quarter.
Net charge-offs as a percentage of average total loans and leases were 0.25%, up from 0.20% in the year-ago quarter.
In the second quarter, the company recorded a provision for credit losses of $132 million, up from $103 million in the year-ago quarter.
HBAN’s Capital Ratios: Mixed Bag
The common equity tier 1 (CET1) risk-based capital ratio was 10% in the second quarter, down from 10.5% in the year-ago period.
The regulatory Tier 1 risk-based capital ratio was 11.3%, down from 11.8% in the comparable period in 2025.
The tangible common equity to tangible assets ratio was 7.1%, up from 6.6% in the year-ago quarter.
HBAN’s Share Repurchase Update
During the second quarter, Huntington repurchased $159 million of common shares. The company repurchased $309 million, or approximately 19 million shares, in the first half of 2026.
Our View on HBAN
The company’s acquisitions and continued organic loan and deposit growth are likely to support revenues. In June 2026, Huntington successfully completed the systems conversion of Cadence Bank, marking the final major integration milestone. The company also realized $70 million of annualized run-rate expense savings in the second quarter from its October 2025 Veritex acquisition and expects the full earnings contribution from its recent acquisitions by the fourth quarter. The anticipated cost and revenue synergies are encouraging. However, elevated expenses and an increase in non-performing assets 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 second-quarter 2026 earnings per share of 54 cents, surpassing the Zacks Consensus Estimate of 52 cents. This compares favorably with 45 cents in the year-ago quarter
FHN’s results benefited from higher NII and non-interest income, along with a lower provision for credit losses. Higher loan and deposit balances also provided support. However, rising expenses and weaker capital ratios were headwinds.
M&T Bank Corporation (MTB - Free Report) reported second-quarter 2026 net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 per share in the year-ago quarter.
MTB’s results were aided by higher NII and a rise in non-interest income on a year-over-year basis, along with loan growth. However, higher expenses acted as headwinds.