Huntington Bancshares Q3 2026 业绩：调整后 EPS 超预期但营收微 miss，股价盘中约 -0.8%

Introduction & Market Context
Huntington Bancshares (NASDAQ:HBAN) presented its third-quarter 2026 earnings results on October 22, 2026, delivering adjusted earnings that exceeded Wall Street expectations while revenue came in slightly below forecasts. The Columbus, Ohio-based regional bank demonstrated disciplined execution in what management characterized as a challenging operating environment marked by intense competition and shifting rate dynamics.
The bank’s adjusted earnings per share of $0.38 beat the consensus estimate of $0.35 by 8.57%, while revenue of $2.79 billion missed the $2.82 billion forecast by 1.06%. Shares traded at $15.76, up 0.25% from the previous close of $15.72, positioning the stock closer to its 52-week low of $14.82 than its high of $19.45.
Quarterly Performance Highlights
As shown in the following overview of third-quarter 2026 key metrics and strategic execution, Huntington reported comprehensive performance across its five growth priorities:
The quarter demonstrated solid fundamentals with GAAP EPS of $0.33 and adjusted EPS of $0.38, after accounting for $125 million in pre-tax notable items. The bank achieved a GAAP return on tangible common equity of 14.6%, or 16.6% on an adjusted basis. Average loan balances declined 0.4% quarter-over-quarter but surged 38.6% year-over-year, while average deposits grew 0.2% sequentially and 35.8% annually.
Credit performance remained strong with a net charge-off ratio of 0.31% and allowance for credit losses coverage of 1.75%. The bank’s strategic priorities showed particular strength in expansion markets, with expansion loans growing approximately 50% year-over-year and expansion deposits up about 40%.
The following chart illustrates the bank’s robust earnings trajectory and ambitious growth targets:
Huntington’s financial performance highlights demonstrate a clear path to value creation. Adjusted EPS grew from $1.45 in fiscal 2025 to a projected $1.52-$1.54 in fiscal 2026, with fiscal 2027 estimates of $1.75-$1.83 representing more than 20% growth. The adjusted return on tangible common equity improved from 16.4% in fiscal 2025 to a projected 17% in fiscal 2026, targeting 17-18% in fiscal 2027.
Strategic Positioning and Competitive Advantages
As illustrated in the following overview of Huntington’s vision and strategic positioning, the bank operates as a super-regional franchise with significant scale:
With $288 billion in assets, $191 billion in loans, and $225 billion in deposits as of September 30, 2026, Huntington positions itself as "a super regional bank positioned for strong secular growth." The bank’s 21-state footprint provides a powerhouse consumer and regional banking franchise, complemented by leading national commercial businesses, comprehensive payments solutions, a full-spectrum wealth management platform, and capital markets capabilities.
The bank’s differentiating capabilities are showcased in its recognition across multiple dimensions:
Huntington earned recognition as a Great Place to Work for eight consecutive years and ranked fourth in Forbes Best Employers for New Grads 2026. The bank achieved J.D. Power’s #1 ranking for digital experience among regional banks and won Euromoney’s 2026 Best Digital Bank for Consumers in the United States. Innovation initiatives include The 1866 Studio, Small Business Agentic AI OS, and new family and teen banking features.
Detailed Financial Analysis
Net interest income performance showed significant strength, as demonstrated in the following chart:
Net interest income on a fully taxable equivalent basis reached $2,090 million in the third quarter of 2026, up 37% year-over-year from $1,523 million in the third quarter of 2025. The net interest margin expanded to 3.25% from 3.13% a year earlier, with management highlighting 4 basis points of expansion in the third quarter through optimization efforts. The bank expects the margin to remain stable into the fourth quarter, benefiting from variable yields in the current rate environment while dynamically managing deposit beta.
Loan and lease performance reflected strategic discipline, as shown in this composition analysis:
Average loan and lease balances totaled $188.4 billion in the third quarter, down 0.4% from the prior quarter but up 38.6% year-over-year. End-of-period balances reached $191.4 billion, representing 1.1% sequential growth. The portfolio composition shows commercial and industrial loans comprising 49%, residential mortgages 18%, lease financing 12%, auto loans 8%, and commercial real estate 6%. Management noted that loan growth accelerated in the second half of the quarter due to strong C&I originations and slowing paydowns in auto, residential, and CRE portfolios.
Deposit trends demonstrated disciplined pricing management, as illustrated in the following peer comparison:
Average deposit balances grew 0.2% quarter-over-quarter to $224.7 billion as of September 30, reflecting a 35.8% year-over-year increase. The bank continued to match-fund loan growth on a year-to-date basis while deepening relationships across all segments. Primary banking relationships grew 4% year-over-year in consumer, 5% in business, and 7% in commercial. The total cost of deposits rose from 1.82% in the third quarter of 2025 to 1.90% in the third quarter of 2026, but Huntington’s position relative to peers showed favorable cost management for deposit growth achieved.
Fee income growth accelerated across multiple business lines, as shown in this breakdown:
Total noninterest income reached $722 million in the third quarter of 2026, up 20% year-over-year and 15% quarter-over-quarter from $523 million in the third quarter of 2024. Payments and cash management revenue totaled $211 million, up 21% sequentially. Wealth and asset management contributed $131 million, up 26% from the prior quarter. Capital markets and advisory revenue reached $122 million, up 30% sequentially. The bank achieved a 58% increase in active lead left roles in its portfolio and a 23% year-to-date increase in total FRM revenue.
Expense management demonstrated continued discipline, as illustrated in this analysis:
Noninterest expense totaled $1,772 million in the third quarter of 2026, with adjusted expenses of $1,655 million excluding notable items. The bank completed full Cadence cost synergy actions in the third quarter and executed a 1.5% efficiency program in fiscal 2026. Management highlighted reengineering of baseline expenses targeting approximately 1.3% annual reduction through business process outsourcing, automation, AI, vendor efficiencies, branch optimization, and organizational simplification. Adjusted operating leverage reached 29.6% year-over-year growth rate, targeting at least 100 basis points for fourth-quarter 2026.
Credit Quality and Risk Management
Huntington’s credit performance metrics demonstrate top-tier quality relative to peers, as shown in the following analysis:
The bank’s net charge-off ratio of 0.31% in the third quarter of 2026 positioned below the peer median, while the allowance for credit losses ratio of 1.75% remained consistently above the peer median of 1.49%. The criticized asset ratio stood at 4.26%, while the non-performing asset ratio reached 0.90%. Management indicated that fiscal 2026 net charge-offs are tracking to the low end of the 25-35 basis point guidance range.
The following peer comparison illustrates Huntington’s superior credit positioning:
The scatter plot comparing ACL ratio to net charge-off ratio places Huntington favorably with lower net charge-offs and stronger coverage compared to most peers. The bank’s year-to-date reserve build of 1.3% contrasts with peer values ranging from -17.1% to 3.0%, demonstrating conservative provisioning. Management expects no reserve release in 2027 and plans to build reserves as the portfolio grows.
Commercial real estate exposure warrants particular attention given industry concerns, as shown in this portfolio overview:
Huntington’s CRE loans represent 12% of total loans as of the third quarter of 2026, below the peer median of 15.7%. The portfolio shows strong diversification across property types, with multifamily comprising $6.0 billion (3.2% of total loans), industrial $4.1 billion (2.2%), retail $3.5 billion (1.8%), office $2.7 billion (1.4%), and hotel $1.9 billion (1.0%). The bank’s CRE reserve coverage of 3.9% significantly exceeds the peer median of 1.7%, with office reserve coverage reaching 11%. The office portfolio represents just 1.4% of total loans and consists predominantly of suburban, multi-tenant properties.
The following peer comparison reinforces Huntington’s conservative CRE positioning:
The scatter plot demonstrates Huntington’s top quartile concentration and top-tier reserve coverage among like-sized U.S. regional banks. With approximately 12% CRE concentration and nearly 4% reserve coverage, the bank positions itself conservatively relative to peers, many of which show higher concentrations with lower reserves.
Auto lending represents another key portfolio component, with the following credit performance analysis:
Auto loans totaled $15.4 billion as of the third quarter of 2026, representing 8.0% of total loans. The bank maintained super-prime customer selection with an average FICO score of 779, supported by 75 years of industry experience and consistent underwriting. Net charge-offs remained competitive, though management noted pulling back on production where pricing has become less attractive. The portfolio demonstrates Huntington’s emphasis on credit quality over volume growth.
Capital Management and Shareholder Returns
Capital ratios and shareholder value creation metrics are illustrated in the following analysis:
The Common Equity Tier 1 ratio stood at 10.1% in the third quarter of 2026, while the adjusted CET1 ratio (excluding AOCI for cash flow hedges) reached 8.9%, within the target operating range of 9-10%. The bank completed approximately $460 million in share repurchases year-to-date through the third quarter, including $100 million in the third quarter. Tangible book value per share reached $9.47, achieving a 10% compound annual growth rate over the past three years. Management expects the Basel III proposal to provide approximately 70-80 basis points of additional CET1 flexibility through risk-weighted asset relief.
The components of value creation are detailed in this ROTCE and TBV analysis:
Last-twelve-months adjusted return on tangible common equity reached 16.5% in the third quarter of 2026, with quarterly adjusted ROTCE of 16.6%. Management targets 17-18% ROTCE in 2027. Tangible book value per share grew from $9.54 in the third quarter of 2025 to $9.47 in the third quarter of 2026, reflecting a 7% year-over-year operational impact from earnings of $1.31 per share, offset by OCI changes of $(0.42) and loan growth/other impacts of $(0.26). Capital return impacts included common dividends of $(0.62) and buybacks of $(0.08). The bank repurchased $409 million in shares (approximately 1%) and maintained a roughly 4% dividend yield.
Liquidity and Balance Sheet Management
Huntington’s deposit franchise quality demonstrates industry-leading characteristics, as shown in this insured deposit comparison:
The bank’s insured deposits represented 68% of total deposits in the third quarter of 2026, the highest percentage among the peer group displayed. This compares favorably to major banks such as JPMorgan at 36%, Bank of America at 58%, and Wells Fargo at 50%. The granular, high-quality deposit base provides stability and reduces funding risk.
Liquidity positioning remains robust, as illustrated in the following analysis:
As of September 30, 2026, total available liquidity reached $125 billion, comprising $108 billion in contingent borrowing capacity from FHLB and FRB, plus $17 billion in cash. Cash plus borrowing capacity as a percentage of uninsured deposits totaled 175%, significantly exceeding the peer median of 90%. This peer-leading liquidity position highlights the bank’s proactive approach to liquidity risk management and the strength of its granular deposit base.
Forward-Looking Guidance and Growth Drivers
Management’s fiscal 2026 financial outlook, as presented in the following guidance table, reflects confidence in continued execution:
For fiscal 2026, Huntington expects net interest income growth of approximately 35%, average loan growth of approximately 36%, and average deposit growth of approximately 32.5%. Noninterest income growth is projected at approximately 31%, with implied revenue growth of approximately 34%. Core expenses are expected to grow approximately 33%, with fourth-quarter core expenses remaining flat relative to the third quarter. Net charge-offs are projected at 25-35 basis points, with fiscal 2026 tracking to the low end of the range. The effective tax rate is expected at approximately 18%, with average shares outstanding of approximately 2,000 million.
Looking further ahead, management provided ambitious targets for fiscal 2027, projecting EPS of $1.75-$1.83, representing more than 20% growth from fiscal 2025 levels. Return on tangible common equity is expected to trend toward 17-18% in 2027. The bank plans share repurchases of approximately $1.3-1.4 billion in fiscal 2027, following approximately $460 million completed in fiscal 2026.
Strategic Challenges and Competitive Environment
Chairman and CEO Steve Steinour acknowledged the more difficult operating backdrop during the earnings call, stating: "We are very different interest rate environment, very different inflation environment, and we’re in a much different competitive environment." This context explains the bank’s disciplined approach to reducing exposure in indirect auto and residential mortgages where pricing has become less attractive.
Management emphasized maintaining focus on risk-adjusted returns over volume growth. "We remain disciplined in maximizing our risk-adjusted returns, optimizing the balance sheet, realizing expense efficiencies, and continuing to invest for long-term growth," Steinour said.
President Brant Standridge highlighted the bank’s cultural advantage: "Our culture remains a competitive advantage. It is what allows us to attract and retain top talent." This cultural strength supports the bank’s ability to execute on strategic priorities while navigating competitive pressures.
Despite the solid quarterly performance and confident outlook, market reception has been measured. The stock trades near its 52-week low, and InvestingPro data reveals that 11 analysts have revised earnings downward for the upcoming period, suggesting some caution around near-term expectations. The platform assigns Huntington a "GOOD" financial health score of 2.51 out of 5.
The bank faces ongoing challenges including intense deposit pricing pressure, particularly in CDs and money market accounts, and a less rational lending environment in some asset classes that could pressure loan growth and pricing. Net interest margin stability depends on managing deposit beta effectively, with management targeting 50-60% beta in the current environment. Credit risk monitoring continues, particularly in commercial real estate and other cyclical exposures, though current metrics remain strong.
Huntington’s third-quarter 2026 presentation demonstrates a bank executing on its strategic priorities while maintaining discipline in a challenging environment. The earnings beat, strong credit quality, and ambitious 2027 growth targets position the company for continued value creation, though competitive pressures and market caution suggest the path forward requires continued careful navigation of the operating environment.
Full presentation:
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