Key financial results
- Huntington Bancshares delivered solid operating performance in the third quarter of 2026, reflecting execution across core businesses and the benefits of investments and recent partnerships.
We delivered solid operating performance in the third quarter
- Net interest income was approximately $2.1 billion, increasing $18 million or 0.9% from the prior quarter and 37% from the prior year.
Net interest income was approximately $2.1 billion, increasing $18 million or 0.9%
- Net interest margin increased 4 basis points to 3.25%, reflecting higher asset yields, lower average Fed cash, and optimized liabilities.
Net interest margin increased 4 basis points to 3.25%
- Noninsurance expense was $1.7 billion, essentially flat on a linked-quarter basis while delivering 120 basis points of positive operating leverage.
Noninterest expense was $1.7 billion, essentially flat on a linked quarter basis
- Reported CET1 ended the quarter at 10.1%, and adjusted CET1 was 8.9%.
Reported CET1 ended the quarter at 10.1%. Adjusted CET1 was 8.9%.
- Tangible book value per share was $9.47, representing a 10% compound annual growth rate over the past three years.
Tangible book value per share was $9.47
- Adjusted return on tangible common equity was 16.6% for the quarter.
Adjusted return on tangible common equity was 16.6% for the quarter
Business segment results
- Loans: Period-end loan balances increased 1.1%, driven by C&I lending with strong contributions from corporate and specialty banking, asset finance, and middle-market banking.
period-end loan balances increased 1.1%
- Loans: Commercial real estate, auto loans, residential mortgages, and distribution finance balances saw lower balances or normal seasonal declines.
partially offset by lower balances in commercial real estate, auto loans and residential mortgages
- Deposits: Average deposits increased approximately $500 million or 0.2%, with overall cost of deposits at 190 basis points.
Average deposits increased approximately $500 million or 0.2%
- Deposits: Consumer primary banking relationships increased 4%, Business Banking grew 5%, and commercial primary banking relationships grew 7% year-over-year.
Consumer PBRs increased 4%. Business Banking PBRs increased 5% and commercial PBRs increased 7% year-over-year.
- Legacy Markets: Legacy banking market loans grew 6% and deposits grew 3% year-over-year.
In our legacy banking markets, we grew loans by 6% and deposits by 3% year-over-year
- New Geographies: Organic deposit and loan growth in newer geographies like the Carolinas reached 50% and 40% year-over-year respectively.
Our organic deposit and loan growth was substantial at 50% and 40% year-over-year.
- Corporate and Specialty: Corporate and Specialty Banking delivered $11 billion of year-over-year loan growth and $9 billion of year-over-year deposit growth.
Corporate and Specialty Banking delivered $11 billion of year-over-year loan growth and $9 billion of year-over-year deposit growth
- Capital Markets: Debt and equity capital markets revenues grew 35% year-to-date.
grew revenues 35% year-to-date.
- Wealth: Wealth management net flows grew 28% through a focus on household acquisition and private banking.
generated a 28% growth in net flows.
- Payments: Treasury management revenue grew 42% year-over-year.
Capital allocation
- Capital management priorities remain supporting high-return organic growth, a strong dividend yield, and deploying excess capital through programmatic share repurchases.
Our capital management priorities remain unchanged.
- The company completed approximately $460 million of share repurchases year-to-date, including $100 million in the third quarter and $50 million in the fourth quarter.
We've completed approximately $460 million of share repurchases year-to-date
- Basel III implementation is estimated to be favorable by providing approximately 70 to 80 basis points of additional CET1 through risk-weighted asset relief.
estimate approximately 70 to 80 basis points of additional CET1 through risk-weighted asset relief.
Industry trends and dynamics
- Management noted that the operating environment is generally constructive with strong commercial pipelines and solid consumer spending trends.
The operating environment is generally constructive
- Higher interest rates and elevated prices for energy and other inputs could dampen future growth or exacerbate the K-shape of the consumer economy.
higher interest rates and elevated prices for energy and other inputs could dampen growth in future years
- Intensified competition has put pressure on deposit pricing and asset yields, particularly in areas like commercial real estate and indirect auto lending.
a real intensification around competition in a few ways.
Competitive landscape
- Huntington maintains an aggregate moderate- to low-risk appetite, pulling back in asset classes where risk-adjusted pricing has compressed.
scaling back in certain asset classes where risk-adjusted pricing has compressed
- The company operates a differentiated banking model across 21 states with meaningful scale in 12 of the top 25 fastest-growing MSAs.
Macroeconomic environment
- Management expects economic conditions for the rest of the year and next to remain supportive of healthy customer activity.
conditions for the rest of this year and next remain supportive of healthy levels of customer activity
- Global volatility and a mature economic recovery prompt a cautious stance on credit and volume growth.
trying to be cautious as we take up here with 17 years of recovery behind us.
Growth opportunities and strategies
- Growth is anchored by five drivers: growing share in core/new markets, national commercial banking expansion, expanded fee capabilities, disciplined balance sheet growth, and driving efficiency.
we have our heads down, and we are laser focused on 5 growth drivers.
- Technology investments include the introduction of the 1866 Studio Agentic small business operating system and AI-powered savings tools.
announced the 1866 Studio, our new Agentic small business operating system.
Financial guidance and outlook
- Management expects 2027 EPS to grow more than 20% from 2025, reaching the $1.75 to $1.83 range.
expect 2027 EPS to grow more than 20% from 2025
- ROTCE is expected to steadily increase into the 17% to 18% range by 2027.
steadily increasing ROTCE into the 17% to 18% range.
- Tangible book value per share is projected to increase by more than 10% from the 2025 level.
tangible book value per share to increase by more than 10% from the 2025 level
- Fourth-quarter 2026 net interest margin is expected to remain relatively stable, with flat core operating expenses compared to the third quarter.
expect net interest margin to remain relatively stable into the fourth quarter.
- Full-year 2026 net charge-offs are anticipated near the low end of the 25 to 35 basis point guidance range.
full year net charge-offs to finish near the low end of our 25 to 35 basis point guidance range.
- Fourth-quarter 2026 fee revenue is projected to be approximately $750 million, leading to a full-year growth rate of about 31%.
expect to generate fourth quarter fee revenue of approximately $750 million
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Net interest income | $2.1 billion | increased 0.9% sequentially and 37% year-over-year |
| Net interest margin | 3.25% | increased 4 basis points |
| Noninterest expense | $1.7 billion | flat on a linked quarter basis |
| Adjusted return on tangible common equity | 16.6% | Not stated |
| Common Equity Tier 1 ratio | 10.1% | Not stated |
How management sounded
Balanced (+35 on our -100 to +100 scale). Management emphasized solid operating performance, ongoing synergy delivery, and confidence in achieving 2027 EPS growth targets despite a competitive environment. Management sounded more upbeat than on 20% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Execution of expense reengineering initiatives and delivery of flat core expenses in the fourth quarter.
- Pace of deposit cost increases and achievement of the 50% to 60% deposit beta assumption.
- Commercial real estate construction commitment levels and portfolio repricing trends.
Earlier calls
- Q2 2026 (Jul 23, 2026), tone Balanced: Huntington Bancshares reported strong second quarter results and successfully completed the Cadence systems conversion, driving revenue growth and positioning the company for its 2027 ROTCE targets.
