Huntington earnings held at $0.33 per diluted share in the third quarter of 2026 as higher net interest income was offset by weaker noninterest income. In its October 22 results and earnings discussion, Huntington Bancshares also outlined 2027 earnings guidance of $1.75–$1.83 per share, representing growth of more than 20% from 2025—not from 2026.
Key Takeaways
- Net interest margin widened to 3.25%, but adjusted quarterly EPS slipped to $0.38.
- Management expects 2027 earnings growth to include acquisition savings and share repurchases, without reserve releases.
- Loan pricing discipline restrained some lending, while charge-offs and nonperforming assets increased.
Table of Contents
- Huntington earnings show mixed revenue momentum
- 2027 outlook combines core growth with savings and buybacks
- Lending discipline limits volume in lower-return businesses
- Credit losses rise while capital remains above prior quarter
- Conclusion
Huntington earnings show mixed revenue momentum
Huntington’s third-quarter earnings announcement showed net income applicable to common shares of $680 million, compared with $686 million in the second quarter and $602 million a year earlier. Diluted EPS was unchanged sequentially but below the $0.41 earned in the third quarter of 2025.
Adjusted EPS, a non-GAAP measure excluding items identified by management as notable, fell one cent from the previous quarter to $0.38. Adjusted return on tangible common equity was 16.6%, compared with an unadjusted 14.6%.
Net interest income increased to $2.069 billion from $2.052 billion in the preceding quarter. The tax-equivalent net interest margin widened four basis points to 3.25%, supported by higher investment-security yields and modestly lower overall net funding costs.
That improvement did not lift total revenue sequentially. Noninterest income fell 8% to $722 million, largely because of lower capital markets fees and unfavorable equity valuation adjustments. Total revenue declined to $2.791 billion from $2.837 billion.
| Item | Details |
|---|---|
| Reported CET1 capital ratio | 10.1%, compared with 10.0% in Q2 2026 |
| Adjusted CET1 capital ratio | 8.9%, compared with 9.0% in Q2 2026 |
| Tangible common equity ratio | 6.9%, compared with 7.1% in Q2 2026 |
| Tangible book value per common share | $9.47, down $0.18 from Q2 2026 |
2027 outlook combines core growth with savings and buybacks
Management’s 2027 EPS range of $1.75–$1.83 includes expected benefits from Cadence cost savings and share repurchases. Investor relations head Eric Wasserstrom identified approximately $150 million of incremental Cadence cost synergies as one contributor to the earnings outlook.
The forecast does not assume a release of credit reserves. Wasserstrom said reserves are expected to build as the loan portfolio grows, distinguishing the projected earnings improvement from a benefit created by reducing loss allowances.
Huntington expects adjusted return on tangible common equity to trend toward 17%–18% in 2027. Management also anticipates approximately $1.8 billion–$1.9 billion of share repurchases across 2026 and 2027; the bank completed $100 million of repurchases in the third quarter.
For the nearer-term fourth quarter, management expects net interest margin to remain relatively stable and core expenses to be flat against the third quarter. Fee revenue is projected at approximately $750 million, with full-year fee growth of about 31%.
Lending discipline limits volume in lower-return businesses
Period-end loans increased 1.1%, but average loans declined 0.4% from the previous quarter. Lower commercial real estate and consumer loan balances outweighed growth in commercial and industrial lending on an average-balance basis.
Chief executive Steve Steinour and President Brant Standridge described pullbacks in auto lending and residential mortgages as pricing and capital-allocation decisions rather than a response to credit concerns. Management said it would accept less volume where returns failed to meet its minimum requirements.
The bank remains on track for approximately 6% organic loan growth for full-year 2026. That measure excludes acquisition-related expansion and is distinct from management’s approximately 36% reported loan-growth expectation.
Average deposits rose 0.2% sequentially. Deposit costs increased two basis points to 1.90%, although management said the pace of increases had moderated substantially from the second quarter.
Credit losses rise while capital remains above prior quarter
Net charge-offs increased six basis points to 0.31%, which management attributed to one commercial credit. The year-to-date rate was 0.27%, and management continued to expect full-year losses near the low end of its 0.25%–0.35% range.
The nonperforming asset ratio rose to 0.90% from 0.85%. Management attributed much of the increase to government-guaranteed loan categories with low expected loss content. The allowance for credit losses stood at 1.75% of loans.
Reported common equity tier 1 capital increased slightly from the preceding quarter. Tangible book value per share, however, declined as market interest rates adversely affected accumulated other comprehensive income.
Conclusion
The next checkpoint for Huntington earnings is fourth-quarter execution against management’s stable-margin, flat-core-expense and approximately $750 million fee-revenue expectations. Those results will help establish the starting point for its 2027 earnings target.
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