3Q26
Filed Oct 22, 2026Filed under $HBANHuntington reported 3Q26 GAAP diluted EPS of $0.33 and adjusted EPS of $0.38, while net interest income rose sequentially and noninterest income declined.
Net interest income, net interest margin, deposits and CET1 improved sequentially, and adjusted noninterest expense was essentially flat. These gains were offset by an 8% sequential decline in noninterest income, lower tangible book value, declining average loans, and higher nonperforming assets and net charge-offs.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net interest incomeGAAP | $2.07B | $ 17 million 1 % | $ 563 million 37 % |
| Net interest income - FTEnon-GAAP | $2.09B | $ 18 million 1 % | $ 567 million 37 % |
| Net interest marginnon-GAAP | 3.25 % | 4 bps | 12 bps |
| Noninterest incomeGAAP | $722M | $ (63) million (8) % | $ 94 million 15 % |
| Total adjusted noninterest incomenon-GAAP | $730M | $ (55) million (7) % | $ 126 million 21 % |
| Total revenueGAAP | $2.79B | – | – |
| Total revenue - FTEnon-GAAP | $2.81B | – | – |
| Noninterest expenseGAAP | $1.77B | $ (37) million (2) % | $ 526 million 42 % |
| Total adjusted noninterest expensenon-GAAP | $1.66B | $ (2) million (—) % | $ 417 million 34 % |
| Net income applicable to common sharesGAAP | $680M | – | – |
| Net incomeGAAP | $721M | – | – |
| Adjusted net incomenon-GAAP | $819M | – | – |
| Diluted EPSGAAP | $ 0.33 | unchanged for the quarter | – |
| Adjusted EPSnon-GAAP | $ 0.38 | down $0.01 from the prior quarter | – |
| PPNRnon-GAAP | $1.04B | – | – |
| Return on average assetsGAAP | 1.01 % | – | – |
| ROCEGAAP | 9.1 | – | – |
| ROTCEnon-GAAP | 14.6 | – | – |
| Adjusted ROTCEnon-GAAP | 16.6 | – | – |
| Efficiency rationon-GAAP | 61.2 | – | – |
| TBV per common sharenon-GAAP | $9.47 | down $0.18, or 2% | – |
| Provision for credit lossesGAAP | $123M | a decrease of $9 million | an increase of $1 million |
| Net charge-offsGAAP | $146M | $27 million | $71 million |
| Net charge-offs / Average total loans and leasesGAAP | 0.31 % | – | – |
| Total nonperforming assetsGAAP | $1.72B | an increase of $110 million | $901 million |
| NPA ratioGAAP | 0.90 | – | – |
| Allowance for credit lossesGAAP | $3.36B | – | – |
| ACL as a % of total loans and leasesGAAP | 1.75 % | 3 basis points lower | 11 basis points lower |
| Tangible common equity / tangible assets rationon-GAAP | 6.9 % | – | – |
| Common equity tier 1 risk-based capital ratioother | 10.1 | – | – |
| Adjusted CET1 rationon-GAAP | 8.9 | – | – |
| Effective tax rateGAAP | 19.3% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Payments and cash management revenueHigher cash management and interchange revenue. | $211M | $ 7 million 3 % | $ 37 million 21 % |
| Wealth and asset management revenueHigher investment management and trust income drove the year-over-year increase. | $131M | $ (3) million (2) % | $ 27 million 26 % |
| Customer deposit and loan feesIncreases in loan commitment fees and the volume of personal service charges. | $124M | $ (4) million (3) % | $ 22 million 22 % |
| Capital markets and advisory feesThe sequential decline reflected lower underwriting and advisory fees; the year-over-year increase reflected legacy business fees, Janney and TM Capital, and higher syndication fees. | $122M | $ (18) million (13) % | $ 28 million 30 % |
| Mortgage banking income | $45M | $ (8) million (15) % | $ 2 million 5 % |
| Net gains (losses) on sales of securities | $ — million | $ (2) million NM | — |
| Other noninterest incomeThe sequential decline was largely due to unfavorable valuation changes for strategic investment and other investments and lower leasing revenue. | $89M | $ (35) million (28) % | $ (22) million (20) % |
Capital returns
- Repurchased $100 million of common shares.
- Repurchases totaled $409 million year-to-date and represented approximately 25 million shares repurchased year-to-date.
What drove it
- FTE net interest income increased $18 million, or 1%, sequentially, driven by a 4 basis point increase in net interest margin.
- Higher earning-asset yields, primarily from reinvestment into higher yielding investment securities, and lower average total borrowings supported net interest margin.
- Average total deposits increased $413 million sequentially, with higher interest-bearing and noninterest-bearing deposits.
- Average commercial and industrial loans increased $553 million, or 1%, sequentially, partially offsetting lower commercial real estate balances.
- The third quarter included the full-quarter impact of the Cadence and Veritex acquisitions.
- Adjusted noninterest expense decreased $2 million sequentially, as lower personnel costs and outside data processing and other services offset higher marketing expense.
Concerns
- Noninterest income decreased $63 million, or 8%, sequentially, led by lower capital markets and advisory fees and lower other noninterest income.
- Average total loans and leases decreased $806 million sequentially, including a $854 million, or 4%, decline in average commercial real estate loans.
- Net charge-offs rose to $146 million and 0.31% of average total loans and leases, from $119 million and 0.25% in 2Q26.
- Total nonperforming assets increased $110 million sequentially to $1,722 million, driven by commercial and industrial, commercial real estate, and residential mortgage nonaccrual loans.
- TBV per common share declined $0.18, or 2%, sequentially, largely due to market interest rates unfavorably affecting AOCI.
- The tangible common equity to tangible assets ratio declined to 6.9% from 7.1% in 2Q26.
What to watch
- Whether higher yields on investment securities and lower overall net funding costs continue to support net interest margin.
- The pace of commercial real estate, residential mortgage, and automobile loan declines relative to commercial and industrial loan growth.
- Trends in net charge-offs, nonperforming assets, and the ACL ratio following the sequential rise in credit stress.
- Recovery in capital markets and advisory fees and strategic-investment valuation changes.
- Execution of targeted cost and revenue synergies from the Veritex and Cadence partnerships.
Balance sheet and cash flow
- Average total earning assets were $ 255,274 million, compared with $ 258,600 million in 2Q26 and $ 192,732 million in 3Q25.
- Average total loans and leases were $ 188,449 million, compared with $ 189,255 million in 2Q26 and $ 135,944 million in 3Q25.
- Average deposits were $ 223,816 million, compared with $ 223,403 million in 2Q26 and $ 164,812 million in 3Q25.
- Total risk-weighted assets were $ 214.5 billion at September 30, 2026.
- The tangible common equity to tangible assets ratio was 6.9% at September 30, 2026.
Analysis
Huntington reported 3Q26 GAAP net income of $ 721 million and GAAP diluted EPS of $ 0.33. Adjusted net income was $ 819 million and adjusted EPS was $ 0.38, compared with $ 843 million and $ 0.39 in 2Q26. Net income applicable to common shares was $ 680 million, compared with $ 686 million in the prior quarter. ROTCE was 14.6 and adjusted ROTCE was 16.6, compared with 15.1 and 17.5 in 2Q26.
Core spread income improved sequentially. GAAP net interest income increased $ 17 million, or 1%, to $ 2,069 million, while FTE net interest income rose $ 18 million, or 1%, to $ 2,090 million. Net interest margin increased 4 basis points to 3.25%, supported by higher earning-asset yields, especially reinvestment into higher yielding investment securities, and lower average total borrowings. Average total loans and leases declined $806 million sequentially, however, as lower commercial real estate and consumer balances more than offset commercial and industrial growth. Average deposits increased $413 million, with money market and interest-bearing demand balances higher and time deposits lower.
Fee income was the principal sequential offset. Noninterest income declined $ 63 million, or 8%, to $ 722 million, with capital markets and advisory fees down $ 18 million and other noninterest income down $ 35 million. The company attributed these changes to lower underwriting and advisory fees, unfavorable valuation changes for strategic investment and other investments, and lower leasing revenue. Adjusted noninterest expense was effectively stable, falling $ 2 million to $ 1,655 million, as lower personnel, technology and data expense offset higher marketing expense in expanding geographic areas.
Credit indicators deteriorated sequentially. Total nonperforming assets rose $110 million to $ 1,722 million, the NPA ratio increased to 0.90 from 0.85, and net charge-offs increased to $ 146 million from $ 119 million. The net charge-off ratio was 0.31%, compared with 0.25% in 2Q26. Provision for credit losses declined to $ 123 million from $ 132 million, while the ACL ratio declined 3 basis points sequentially to 1.75%.
Capital remained supported by current-period earnings net of dividends, although tangible capital and tangible book value were pressured by interest-rate effects on AOCI. CET1 increased to 10.1 from 10.0, while the tangible common equity to tangible assets ratio decreased to 6.9% from 7.1%. TBV per common share declined to $9.47 from $9.65. Huntington repurchased $100 million of common shares during the quarter, bringing year-to-date repurchases to $409 million. The release did not provide forward financial guidance.
Management, verbatim
Huntington delivered a solid quarter, reflecting disciplined execution and continued business momentum across the franchise. We are also seeing increasing benefits from our recent partnerships with Veritex and Cadence, and are achieving our targeted cost and revenue synergies. Our results reflect our disciplined growth strategy, in line with our aggregate moderate-to-low risk profile, and give us confidence that we are on track to meet our financial targets and deliver sustained growth in earnings, tangible book value and long-term shareholder returns.
Steve Steinour, Huntington chairman and chief executive officer
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expense guidance
- Forward tax-rate guidance
- Prior-release outlook for comparison
- GAAP operating income
- Gross margin
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Dividend amount
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.