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Huntington Q3 Earnings Match Estimates as NII & Fee Income Rise Y/Y
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Key Takeaways
Huntington's Q3'26 adjusted EPS of 38 cents matched estimates, while revenues rose 30.7% to $2.81 billion.
HBAN's net interest income jumped 37.2%, while fee income rose 14.9% and NIM expanded 12 basis points.
HBAN's non-interest expenses surged 42.2%, while net charge-offs rose to $146 million from $75 million.
Huntington Bancshares Incorporated (HBAN - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of 38 cents, which matched the Zacks Consensus Estimate. The bottom line declined from 40 cents in the year-ago quarter.
Results benefited from higher net interest income (NII), an expansion in net interest margin (NIM) and increased fee income. Growth in average deposit balances on a sequential basis also provided support. However, higher non-interest expenses, a sequential decline in average loan balance and deterioration in credit quality were headwinds.
The reported quarter's results excluded 5 cents per share of the after-tax impact of notable items, primarily acquisition-related expenses. After considering these, net income attributable to Huntington (GAAP basis) was $721 million, up 14.6% year over year.
HBAN’s Q3 Revenues & Expenses Increase
Total quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 30.7% year over year to $2.81 billion. The top line marginally missed the Zacks Consensus Estimate of $2.82 billion.
NII (FTE basis) was $2.09 billion, up 37.2% from the prior-year quarter. The increase reflected higher average earning assets and an expansion in NIM. NIM rose 12 basis points year over year to 3.25%, supported by lower deposit costs.
Non-interest income increased 14.9% year over year to $722 million. The improvement was driven by higher payments and cash management revenues, capital markets and advisory fees, wealth and asset management revenues, and customer deposit and loan fees.
Non-interest expenses surged 42.2% year over year to $1.77 billion. The rise was primarily due to higher personnel costs, outside data processing and other services, net occupancy expenses, amortization of intangibles and other costs. Adjusted non-interest expenses increased 33.7% to $1.66 billion, mainly reflecting the impact of recent acquisitions.
The efficiency ratio was 61.2%, up from 57.4% in the year-ago quarter. A rise in the efficiency ratio indicates lower profitability.
HBAN’s Loans Decline and Deposits Rise
Average loans and leases at Huntington declined 0.4% sequentially to $188.4 billion, driven by lower commercial real estate and consumer loan balances, partly offset by growth in commercial and industrial loans.
Average total deposits increased 0.2% to $223.8 billion on a sequential basis. The rise was supported by higher interest-bearing demand and money market deposit balances, partly offset by lower time deposits.
HBAN’s Credit Quality Deteriorates in Q3
Net charge-offs were $146 million, up from $75 million in the prior-year quarter. The quarter-end allowance for credit losses increased to $3.36 billion from $2.56 billion a year ago. Total non-performing assets were $1.72 billion as of Sept. 30, 2026, up from $821 million in the year-ago quarter.
Net charge-offs as a percentage of average total loans and leases were 0.31%, up from 0.22% in the prior-year quarter.
In the third quarter, the company recorded a provision for credit losses of $123 million, marginally up from $122 million in the year-ago period.
HBAN’s Capital Ratios: Mixed Bag
The common equity tier 1 (CET1) risk-based capital ratio was 10.1% in the third quarter, down from 10.6% in the year-ago period.
The regulatory Tier 1 risk-based capital ratio was 11.5%, down from 12.4% in the comparable period in 2025.
The tangible common equity to tangible assets ratio was 6.9%, up from 6.8% in the year-ago quarter.
HBAN’s Share Repurchase Update
During the third quarter, Huntington repurchased $100 million of common shares. The company repurchased $409 million, or approximately 25 million shares, in the first nine months of 2026.
Our View on HBAN
Huntington's recent acquisitions and efforts to expand its commercial banking, payments and wealth management businesses are expected to support revenue growth. The company completed its Cadence cost synergy actions during the third quarter, while benefits from the Veritex acquisition continue to materialize. Management expects approximately 34% revenue growth in 2026 and stable NIM in the fourth quarter of 2026. These factors, along with disciplined expense management and continued investments in growth markets, bode well for long-term prospects. However, elevated operating expenses, rising non-performing assets and higher net charge-offs remain concerns.
Huntington Bancshares Incorporated Price, Consensus and EPS Surprise
Fifth Third Bancorp (FITB - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $1.13, which surpassed the Zacks Consensus Estimate of $1.09. In the prior-year quarter, the company posted adjusted EPS of 93 cents.
FITB’s results benefited from solid growth in net interest income and fee income, along with higher loan and deposit balances. Lower provisions for credit losses also offered support. However, a substantial year-over-year rise in non-interest expenses acted as a headwind.
M&T Bank Corporation (MTB - Free Report) reported third-quarter net operating earnings per share of $5.08, which beat the Zacks Consensus Estimate of $4.98. The bottom line compared favorably with earnings of $4.87 in the year-ago quarter.
MTB’s results were aided by higher net interest income and loan growth. However, lower non-interest income and higher expenses, along with a sequential decline in deposits, acted as headwinds.
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Huntington Q3 Earnings Match Estimates as NII & Fee Income Rise Y/Y
Key Takeaways
Huntington Bancshares Incorporated (HBAN - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of 38 cents, which matched the Zacks Consensus Estimate. The bottom line declined from 40 cents in the year-ago quarter.
Results benefited from higher net interest income (NII), an expansion in net interest margin (NIM) and increased fee income. Growth in average deposit balances on a sequential basis also provided support. However, higher non-interest expenses, a sequential decline in average loan balance and deterioration in credit quality were headwinds.
The reported quarter's results excluded 5 cents per share of the after-tax impact of notable items, primarily acquisition-related expenses. After considering these, net income attributable to Huntington (GAAP basis) was $721 million, up 14.6% year over year.
HBAN’s Q3 Revenues & Expenses Increase
Total quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 30.7% year over year to $2.81 billion. The top line marginally missed the Zacks Consensus Estimate of $2.82 billion.
NII (FTE basis) was $2.09 billion, up 37.2% from the prior-year quarter. The increase reflected higher average earning assets and an expansion in NIM. NIM rose 12 basis points year over year to 3.25%, supported by lower deposit costs.
Non-interest income increased 14.9% year over year to $722 million. The improvement was driven by higher payments and cash management revenues, capital markets and advisory fees, wealth and asset management revenues, and customer deposit and loan fees.
Non-interest expenses surged 42.2% year over year to $1.77 billion. The rise was primarily due to higher personnel costs, outside data processing and other services, net occupancy expenses, amortization of intangibles and other costs. Adjusted non-interest expenses increased 33.7% to $1.66 billion, mainly reflecting the impact of recent acquisitions.
The efficiency ratio was 61.2%, up from 57.4% in the year-ago quarter. A rise in the efficiency ratio indicates lower profitability.
HBAN’s Loans Decline and Deposits Rise
Average loans and leases at Huntington declined 0.4% sequentially to $188.4 billion, driven by lower commercial real estate and consumer loan balances, partly offset by growth in commercial and industrial loans.
Average total deposits increased 0.2% to $223.8 billion on a sequential basis. The rise was supported by higher interest-bearing demand and money market deposit balances, partly offset by lower time deposits.
HBAN’s Credit Quality Deteriorates in Q3
Net charge-offs were $146 million, up from $75 million in the prior-year quarter. The quarter-end allowance for credit losses increased to $3.36 billion from $2.56 billion a year ago. Total non-performing assets were $1.72 billion as of Sept. 30, 2026, up from $821 million in the year-ago quarter.
Net charge-offs as a percentage of average total loans and leases were 0.31%, up from 0.22% in the prior-year quarter.
In the third quarter, the company recorded a provision for credit losses of $123 million, marginally up from $122 million in the year-ago period.
HBAN’s Capital Ratios: Mixed Bag
The common equity tier 1 (CET1) risk-based capital ratio was 10.1% in the third quarter, down from 10.6% in the year-ago period.
The regulatory Tier 1 risk-based capital ratio was 11.5%, down from 12.4% in the comparable period in 2025.
The tangible common equity to tangible assets ratio was 6.9%, up from 6.8% in the year-ago quarter.
HBAN’s Share Repurchase Update
During the third quarter, Huntington repurchased $100 million of common shares. The company repurchased $409 million, or approximately 25 million shares, in the first nine months of 2026.
Our View on HBAN
Huntington's recent acquisitions and efforts to expand its commercial banking, payments and wealth management businesses are expected to support revenue growth. The company completed its Cadence cost synergy actions during the third quarter, while benefits from the Veritex acquisition continue to materialize. Management expects approximately 34% revenue growth in 2026 and stable NIM in the fourth quarter of 2026. These factors, along with disciplined expense management and continued investments in growth markets, bode well for long-term prospects. However, elevated operating expenses, rising non-performing assets and higher net charge-offs 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 #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
Fifth Third Bancorp (FITB - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $1.13, which surpassed the Zacks Consensus Estimate of $1.09. In the prior-year quarter, the company posted adjusted EPS of 93 cents.
FITB’s results benefited from solid growth in net interest income and fee income, along with higher loan and deposit balances. Lower provisions for credit losses also offered support. However, a substantial year-over-year rise in non-interest expenses acted as a headwind.
M&T Bank Corporation (MTB - Free Report) reported third-quarter net operating earnings per share of $5.08, which beat the Zacks Consensus Estimate of $4.98. The bottom line compared favorably with earnings of $4.87 in the year-ago quarter.
MTB’s results were aided by higher net interest income and loan growth. However, lower non-interest income and higher expenses, along with a sequential decline in deposits, acted as headwinds.