Huntington Bancshares Incorporated

HBAN · NASDAQ · USD

Can Huntington keep growing loans and fees fast enough to offset a thinner net interest margin and still reach its 2027 return target?

Last 4 earnings calls · through Q2 FY2026

Bull case

  • Fee businesses compounding

    The bull case rests on payments, wealth management and capital markets growing fast enough that fee income can carry revenue growth when lending spreads are thin.

  • Texas and Southeast expansion

    Texas and the Southeast give Huntington lending and deposit capacity in faster-growing markets, so the acquisitions add growth rather than only cost savings.

  • Synergies fund reinvestment

    Cost synergies from the two bank deals and a growing buyback are expected to lift returns while still funding investment in new markets and technology.

Bear case

  • Deposit cost pressure

    The bear case is that deposit competition and a higher-for-longer rate path keep funding costs elevated, so balance sheet growth earns a thinner spread than planned.

  • Loan growth held back

    Auto lending and commercial real estate construction are being deliberately shrunk for return reasons, which holds back reported loan growth while the cost base stays fixed.

  • Integration absorbs management

    Two bank conversions in a year absorb management attention and carry retention and systems risk, and any slip would delay the revenue synergies the plan depends on.

Bull and bear points

Growth & Execution

In short: Loan and deposit growth outpace peers, but a softer lending outlook now leans on fee growth to offset it.

Bull · 3

  • Texas footprint now ranks among the state's largest banks

    Scale in Dallas and Houston gives Huntington a base to sell commercial, wealth and payments products, so the acquisition adds revenue capacity rather than only cost savings.

    Q2 FY2026 call

  • Fee income growth accelerated to 30% organically

    Payments, wealth and capital markets are growing fast enough to carry revenue when lending spreads narrow, which reduces reliance on balance sheet growth.

    Q2 FY2026 call

  • Macro outlook language turned less cautious

    Management moved from flagging rising uncertainty on the prior call to reporting improved visibility, which supports the view that commercial demand holds through the second half.

    Tone shiftQ1 FY2026 → Q2 FY2026
Bear · 2

  • Auto and construction runoff cut organic loan growth

    Huntington pulled back auto production and is shrinking construction commitments for return reasons, so reported loan growth trails the pace of its pipelines.

    Q2 FY2026 call

  • Net interest income guidance stepped down again

    A second consecutive trim to the net interest income outlook means fee growth and expense cuts have to close the gap to keep the 2027 earnings target intact.

    Tone shiftQ1 FY2026 → Q2 FY2026

Profitability & Financial Strength

In short: Returns are high and rising on cost cuts and buybacks, while deposit costs pressure margins.

Bull · 2

  • Combined cost synergies of $435 million due by fourth quarter

    Full run rate savings from Veritex and Cadence are the main driver of the targeted efficiency ratio and of the return on tangible common equity management targets for 2027.

    Q2 FY2026 call

  • Buyback plan scaled up and made multi-year

    Capital return moved from a small quarterly baseline to a $550 million annual plan plus a $3 billion authorization, which supports per-share earnings as the share count falls.

    Tone shiftQ3 FY2025 → Q1 FY2026
Bear · 2

  • Share count rose 2.7% over three years on deal issuance

    Acquisition-related issuance added shares before repurchases began, so buybacks first have to offset that dilution before they add to per-share results.

    Filed financials

  • Deposit costs drove the latest margin shortfall

    Management named deposit pricing as the largest single change to its net interest margin outlook, so funding competition now sets how much the balance sheet earns.

    Q2 FY2026 call

Market Position

In short: Texas scale supports growth, while deposit competition and construction lending limit pricing power.

Bull · 2

  • Proposed Basel III rules would cut risk-weighted assets

    Management estimates roughly 7.7% lower risk-weighted assets and about 80 basis points of capital relief, which it links to additional repurchase capacity in 2027.

    Q1 FY2026 call

  • Consumer segment supplies granular deposit funding

    Consumer and Regional Banking produces about two thirds of segment revenue and roughly half of deposits, giving commercial lending growth a stable funding base.

    Q2 FY2026 call
Bear · 2

  • Deposit pricing competition is sharpest in the Midwest

    Huntington prices deposits across 56 regional markets and calls the Midwest its most competitive, which limits how far funding costs can fall.

    Q2 FY2026 call

  • Construction lending still above target share

    Management wants commercial real estate construction lower as a share of loans, so the planned runoff removes balances that would otherwise support loan growth.

    Q1 FY2026 call