Huntington Bancshares’ Bold Moves: Strong Earnings and a $7.4B Bank Takeover Shake Up HBAN Stock

27 October 2025

October 27, 2025: Huntington Bancshares Incorporated (NASDAQ: HBAN) is making headlines with a potent mix of robust earnings and aggressive expansion. The Columbus, Ohio-based regional bank is riding high on better-than-expected Q3 results and announcing a $7.4 billion takeover of Cadence Bank, a bold merger that extends Huntington’s footprint into the lucrative Texas and Southeast markets. Investors are parsing what these developments mean for HBAN’s stock price and future.

Stock Price (Oct 27, 2025): HBAN traded around the mid-$15s per share, down roughly 3–4% in Monday’s pre-market after the merger news ^[1]. This dip trimmed a modest rebound from last week, when strong earnings had lifted the stock about 1% ^[2]. Shares remain ~15% below their 52-week high of $18.45 ^[3], though still ~30% above this year’s lows ^[4].
Recent Performance: Prior to the Cadence deal announcement, Huntington’s stock had been under pressure amid sector-wide jitters – falling nearly 14% over the past month ^[5] – but Q3 earnings beat expectations and briefly sparked a relief rally ^[6]. As of today, HBAN is down about 5–6% year-to-date, roughly in line with the regional bank index’s decline ^[7].
Q3 Earnings Beat: Huntington reported third-quarter net income of $629 million, or $0.41 per share, up 22% year-over-year and ahead of forecasts ^[8] ^[9]. Revenue of $2.15 billion also topped estimates ^[10]. Net interest income jumped ~11% on loan growth and expanded margins, while fee income surged ~20% as capital markets and advisory fees rebounded ^[11] ^[12]. The bank’s EPS beat consensus by about 5%, indicating stronger-than-expected performance ^[13] ^[14].
Dividend & Valuation: Huntington pays a quarterly dividend of $0.155 per share (yield ~3.9% annually) ^[15]. At ~$15–16, the stock trades around 12–13 times trailing earnings ^[16] (under 10x on a forward basis) and roughly 1x book value, a modest valuation for a profitable regional lender.
Cadence Bank Merger: On Oct. 27, Huntington announced an all-stock deal to acquire Cadence Bank of Texas/Mississippi for $7.4 billion (2.475 HBAN shares for each Cadence share, a ~9% premium) ^[17]. The merger will create a top-10 U.S. regional bank with about $276 billion in assets and $220 billion in deposits ^[18]. Huntington gains 390 branches across the South, instantly becoming a major player in Houston and Dallas (#5 by deposits) and the #1 bank in Mississippi ^[19].
Strategic Rationale: CEO Steve Steinour called the Cadence acquisition “a significant step” expanding Huntington’s franchise to 21 states and high-growth markets in the South and Texas ^[20]. The bank expects ~10% earnings-per-share accretion from the deal, with cost synergies lifting its return on tangible equity target to 18–19% (up from 16–17% pre-deal) ^[21]. The merger is slated to close in Q1 2026 pending approvals ^[22].
Market Reaction: Investor response to the Cadence deal was mixed – Cadence’s stock jumped ~2% on the news, while Huntington’s fell ~4% as some shareholders fretted over integration risks and near-term dilution ^[23] ^[24]. However, analysts largely praised the strategic logic, noting Huntington’s bold expansion into fast-growing regions is aligned with its long-term growth plan ^[25].
Sector Backdrop: Huntington’s moves come amid a broader wave of regional bank consolidation in 2025. Earlier this month, Ohio rival Fifth Third Bancorp agreed to buy Comerica for $10.9 billion – the year’s largest bank deal ^[26] – underscoring the push by mid-sized lenders to scale up and compete with the Wall Street megabanks. U.S. regulators have signaled a friendlier stance on bank M&A (streamlining merger approvals) ^[27], and many regional banks are merging to diversify revenues and expand into new markets ^[28].
Analyst Sentiment: Wall Street views on HBAN are predominantly positive. Bank of America upgraded its price target to $21 (Buy rating) after earnings, citing the bank’s core EPS beat and growth potential not yet reflected in the stock ^[29] ^[30]. DA Davidson likewise raised 2025 EPS estimates and maintains a Buy with a $21 target ^[31]. In total, 17 out of 21 analysts rate Huntington a “Buy” or better, versus only a few holds and one sell, and the consensus price target of ~$20 implies double-digit upside from current levels ^[32].

Stock Price and Recent Trading Action

As of October 27, Huntington’s stock is hovering near $15.5 per share in afternoon trading. That price is down a few percent from Friday’s close, reflecting a knee-jerk selloff after the Cadence Bank acquisition announcement ^[33]. In pre-market trading Monday, HBAN slid about 3–4%, even as Cadence’s stock popped roughly 2% on the news ^[34]. The dip suggests some investors are wary of the deal’s short-term impacts (share dilution and execution risk) ^[35].

This pullback comes on the heels of a volatile month for HBAN. Over the past month, shares had lost nearly 14% of their value amid wider banking-sector jitters ^[36]. Concerns about higher interest rates, a few isolated credit scares, and general risk-off sentiment hit regional bank stocks broadly in recent weeks. Huntington was no exception, with its stock trading down to the mid-$15s from highs above $17 in late September.

However, last week brought some relief. On October 17, Huntington reported bullish Q3 results that beat expectations, which briefly lifted the stock. HBAN shares rallied ~1–2% in pre-market trading after the earnings beat ^[37], and by late afternoon that day the stock was up about 1.2% as investors digested the good news ^[38]. Even with that bounce, Huntington’s stock has yet to recover its recent losses – it remains roughly 15% below its 52-week high of $18.45 ^[39]. On the positive side, shares are still well above their lows (around $11.92) from earlier in the year ^[40], reflecting how far the bank and sector have stabilized since the turmoil of 2023. Year-to-date, HBAN is down roughly 5–6%, which is roughly on par with the KBW Regional Bank Index over the same period ^[41].

From a technical analysis standpoint, Huntington’s recent downtrend means the stock is trading below key moving averages – for instance, its 50-day moving average is around $17 ^[42], above the current price. This indicates near-term momentum had turned negative prior to earnings. The latest news-driven dip puts shares near short-term support levels in the mid-$15 range; traders will be watching if HBAN can hold above its early-October lows. Market volatility remains elevated for bank stocks, but some analysts note that much of the sector’s bad news may already be “priced in” after months of declines. Indeed, even after the recent slide, Huntington’s stock is roughly 30% higher than its lows of the past year ^[43], underscoring improved sentiment versus the height of banking fears.

Third-Quarter Earnings: Profits Surge Amid Loan Growth

Huntington’s Q3 2025 earnings report delivered welcome good news to shareholders. The bank earned $629 million in Q3 net income, up from $517 million a year ago, marking a +22% year-over-year jump ^[44]. Earnings per share came in at $0.41, well above the $0.33 in the year-ago quarter and beating Wall Street’s consensus (around $0.37–0.38) by roughly 10% ^[45] ^[46]. Revenue also topped forecasts: Huntington reported $2.15 billion for the quarter versus ~$2.08B expected ^[47]. This outperformance on both the top and bottom lines highlights a quarter of broad strength for the bank.

Key drivers of the earnings beat were strong interest income and fees. Net interest income – essentially the profit margin on loans after funding costs – climbed 11% year-over-year to approximately $1.51 billion ^[48]. This was aided by loan growth and a fatter net interest margin, as Huntington benefited from higher lending rates while keeping deposit costs in check. Notably, the Federal Reserve implemented its first interest rate cut of the year in Q3 (after aggressive hikes in prior years), which eased funding costs a bit and provided “relief on the cost of capital” for lenders ^[49]. Huntington’s results mirrored those of peers like Citizens Financial and PNC, who also reported jumping profits on higher interest income in Q3 ^[50].

Non-interest income (fees and other revenue) was another bright spot. Huntington’s fee-based income rose about 20% from a year ago ^[51]. The bank saw a 21% surge in capital markets and advisory fees, reflecting robust activity in areas like loan syndications and M&A advisory as dealmaking rebounded ^[52]. Core banking fees (from customer accounts, cards, and lending) also grew solidly, up 19% to $102 million ^[53]. Management highlighted especially strong performance in corporate banking advisory services, indicating that even as the economy faces uncertainty, middle-market clients are engaging in financings and transactions – benefiting banks like Huntington.

Crucially, loan growth remained healthy. Huntington’s average total loans and leases increased ~9% year-over-year (and +2% quarter-on-quarter) ^[54], crossing $135 billion in loans outstanding. Growth was led by commercial lending – CFO Zach Wasserman noted that commercial loans grew 12% year-over-year, as businesses drew on credit lines and new loans ^[55] ^[56]. Consumer lending rose ~5% YoY, with continued demand in categories like auto finance and home equity ^[57]. On the funding side, deposits ticked up about 5% from last year (and 1% sequentially) ^[58], suggesting Huntington has held onto customers despite industry-wide competition for deposits.

Importantly, Huntington’s management grew more optimistic about future growth. The bank raised its outlook for full-year loan and deposit growth, according to CFO Wasserman’s comments. “We came into this year thinking loans would grow ~5%, [but] our latest outlook is 8%. We thought deposits would grow in the low single digits and we’re seeing almost 6%,” Wasserman said ^[59]. This improved guidance underscores that credit demand has been stronger than expected in Huntington’s footprint. Some analysts also interpret it as a sign the bank is successfully winning market share, perhaps helped by dislocations at weaker competitors earlier in the year.

The one area of caution in Q3 was credit quality – not because it deteriorated significantly at Huntington, but because investors have been on high alert for any signs of trouble. In recent weeks, two auto-industry bankruptcies and revelations of credit fraud had put a spotlight on banks’ loan books, dragging financial stocks down on fears of rising defaults ^[60]. Against that backdrop, Huntington’s credit metrics held up reasonably well. The bank’s provision for credit losses (money set aside for potential bad loans) was $122 million in Q3, up from $106M a year earlier ^[61] – a modest increase reflecting cautious posture. Actual loan net charge-offs were 0.22% of loans (roughly $66M), a low level that’s only slightly above last quarter ^[62]. Non-performing assets fell to 0.60% of loans, improving a bit from Q2 ^[63]. Huntington’s management stated that asset quality remains stable, with no alarming spikes in delinquencies. In fact, at mid-year CEO Steinour noted the loan portfolio was performing “exceptionally well” and expressed confidence in the second-half credit outlook, barring any major economic downturn ^[64] ^[65]. So far, those words seem to be holding true.

All told, Huntington’s Q3 performance impressed. It showcased resilience in a challenging environment – the bank managed to expand lending, hold deposit costs in check, and grow fees, all while maintaining solid credit discipline. The result was a meaningful earnings beat that stood out against a backdrop of investor nervousness. “The results exceeded Wall Street forecasts for both earnings and revenue,” noted one analysis, which pointed out HBAN’s EPS beat consensus by ~5% and revenue by ~3% ^[66] ^[67]. In response, Huntington’s stock enjoyed a brief relief rally, suggesting investors were relieved to see a clean quarter with no unpleasant surprises ^[68] ^[69]. This sets a positive foundation as the bank moves into year-end – though as events would prove, Huntington had even bigger news in store just a week later.

$7.4B Cadence Bank Takeover: Expanding Huntington’s Footprint

On the morning of October 27, Huntington Bancshares dropped a bombshell announcement: it will acquire Cadence Bank in an all-stock merger valued at $7.4 billion ^[70] ^[71]. The deal instantly became one of the largest bank mergers of 2025, second only to Fifth Third’s Comerica purchase. It underscores a bold strategic pivot by Huntington – leveraging its financial strength to expand beyond its traditional Midwest base and deepen its presence in the fast-growing Sunbelt region.

Deal terms and scale: Cadence Bank (NYSE: CADE) is a regional lender headquartered in Houston and Tupelo, MS, with about $53 billion in assets and a footprint across Texas and the Southeast. Huntington agreed to pay 2.475 of its own shares for each Cadence share, which, based on HBAN’s pre-announcement stock price (~$16.07 on Oct. 24), equates to $39.77 per Cadence share – roughly a 9% premium to Cadence’s prior close ^[72]. The stock-for-stock transaction implies no cash change hands, preserving Huntington’s capital while making Cadence shareholders part-owners of the combined company.

Once completed, the merger will create a regional banking heavyweight. The combined Huntington-Cadence will have approximately $276 billion in total assets, $220 billion in deposits, and $184 billion in loans ^[73] – catapulting Huntington into the top 10 U.S. banks by deposit size ^[74]. Such scale approaches that of super-regional peers like U.S. Bancorp and Truist. Huntington will gain ~390 branches across 8–9 Southern states from Cadence ^[75], massively extending its reach beyond the Midwest. Notably, the deal plants Huntington firmly in Texas, the second-largest U.S. banking market. Huntington will become the #5 bank by deposits in both Dallas and Houston metro areas ^[76], and among the top 10 across the broader Texas/South region ^[77]. It also secures a #1 deposit market share in Mississippi (Cadence’s legacy stronghold) and sizable footholds in states like Alabama, Louisiana, and Florida ^[78]. In one stroke, Huntington is transforming from a Midwest/Great Lakes regional player to a truly multi-region franchise spanning 21 states.

Strategic rationale: Huntington’s management portrayed the Cadence acquisition as the logical next chapter in its growth story. Chairman and CEO Steve Steinour hailed the merger as “an important next phase of growth” that “extends the reach of our full franchise to 21 states – stretching from the Midwest to the South to Texas – and into new, high-growth markets for which we have a powerful playbook.” ^[79] ^[80] In other words, Huntington sees the booming economies of Texas and the Southeast as prime territory to deploy its banking model. Cadence gives Huntington an on-the-ground presence and customer base in these regions overnight.

Steinour and his team emphasized that Cadence’s culture and business focus are a good fit. Cadence is known for community banking and middle-market commercial lending – similar to Huntington’s strengths. Cadence’s CEO Dan Rollins stated the deal “creates lasting value” by combining Cadence’s local relationships with Huntington’s larger resources and technology ^[81]. Analysts also applauded the strategic fit: “Huntington has been on the path to expanding in Texas and the Southeast and we believe this acquisition fits nicely into that expansion strategy,” wrote RBC Capital Markets analysts in a note ^[82]. Essentially, Huntington was already eyeing growth in these regions – in fact, it had just closed a smaller acquisition in Texas (Veritex Bank of Dallas) on Oct. 20 ^[83] – so adding Cadence turbocharges that plan. It’s a rare opportunity to gain significant market share in one move.

Beyond geography, financial considerations also underpin the merger. Huntington expects the deal to be meaningfully accretive to earnings. Projected cost synergies (eliminating redundancies in back-office, IT, overlapping branches, etc.) and revenue opportunities (selling more products to Cadence customers) are forecast to boost Huntington’s EPS by ~10% once integration is complete ^[84]. Management estimates a “mild” hit to regulatory capital ratios at closing and roughly a 7% dilution to tangible book value per share, which it aims to earn back within 3 years through retained earnings ^[85]. New performance targets were rolled out: Huntington raised its medium-term return on tangible common equity (ROTCE) goal to 18–19%, up from 16–17% pre-merger ^[86]. This implies the bank sees higher profitability ahead, thanks in part to efficiencies and broader scale from Cadence. Overall, Huntington is signaling that the acquisition will pay off handsomely over time – enhancing growth, profitability, and competitive positioning.

Timeline and next steps: The deal is expected to close by the first quarter of 2026, pending regulatory and shareholder approvals ^[87]. Bank mergers of this size undergo review by the Federal Reserve and other regulators, but officials have lately been encouraging well-capitalized regional banks to combine (to strengthen the sector), so most analysts anticipate approval. Upon closing, Huntington will immediately start integrating Cadence’s operations. Full system conversion and rebranding of Cadence branches to “Huntington” is slated for Q2 2026 ^[88]. Until then, both banks will operate independently. In the meantime, Huntington’s management has begun outreach to Cadence’s employees and customers to ensure a smooth transition, and it held an investor call on Oct. 27 to discuss deal details ^[89]. Importantly, Huntington paused any share buybacks to conserve capital for the merger, but it maintained its dividend, reflecting confidence in capital levels.

Broader Banking Trends: Consolidation and Caution

Huntington’s recent moves – a major acquisition following solid earnings – can’t be viewed in isolation. They’re part of larger trends in the U.S. banking industry that have been unfolding throughout 2024 and 2025. Several key themes provide context:

Wave of Regional Bank M&A: After a lull in 2022–2023 (amid economic uncertainty and regulatory scrutiny), bank deal-making has accelerated in 2025 ^[90]. Aside from Huntington’s Cadence purchase and Fifth Third’s $10.9B Comerica deal ^[91], other regionals are pairing up. For example, The Wall Street Journal noted October saw the highest volume of bank merger announcements in years. This consolidation push is driven by both opportunity and necessity. On one hand, many mid-sized banks are finding that scale is crucial – being bigger helps spread costs (especially technology and compliance costs) and compete for customers. On the other hand, some banks that struggled with thinning margins and depositor flight earlier are now open to being bought by stronger peers. Analysts say the highly fragmented U.S. banking market leaves ample room for consolidation ^[92], as the country still has thousands of banks competing. Huntington’s CEO has long been vocal that the industry would benefit from “sensible consolidation,” and now he’s acting on that belief.
Regulatory Climate: The pace of bank M&A is also influenced by regulators’ stance. Under the current U.S. administration in 2025, the regulatory tone toward mergers appears accommodative. The federal agencies have pledged to simplify and speed up merger approvals for healthy banks ^[93]. This is a shift from a few years ago, when deals often faced lengthy delays. The change reflects a view that well-capitalized regional banks combining can create more resilient institutions (as long as competition concerns are addressed). Indeed, Huntington specifically cited that the deal will strengthen its ability to serve customers and communities with a broader network. Still, regulators will watch execution closely; large mergers can be risky if not managed well. Separately, regulators are also formulating stricter capital rules (the so-called Basel III “endgame” reforms) for banks in Huntington’s size category. Those rules, expected to phase in over coming years, could require somewhat higher equity capital buffers. Huntington’s current capital (CET1 ~10.6% ^[94]) is above minimums, but as it grows towards $300B in assets, it may face more “big bank” regulations. This is a long-term consideration that investors are monitoring.
Interest Rate Environment: After an unprecedented series of Federal Reserve rate hikes in 2022–2023, the interest rate cycle turned a corner in late 2025. The Fed executed its first rate cut in September 2025, responding to cooling inflation and slower economic growth ^[95]. Paradoxically, banks like Huntington benefit from both sides of this cycle. The earlier rate hikes had sharply boosted banks’ loan yields and net interest income – a big reason Huntington’s interest income jumped 11% in Q3 ^[96]. But the rapid rise in rates also drove up banks’ deposit costs and caused unrealized losses on securities, which spooked investors in early 2023. Now, with rates having likely peaked and even ticking down slightly, banks get some relief: funding costs stabilize and the pressure on bond portfolios eases. Huntington’s CFO noted that the September rate cut “provided relief on the cost of capital” for borrowers and lenders alike ^[97]. Going forward, a gentle rate-cutting cycle could actually help regional banks by lowering deposit competition (banks won’t need to pay ever-higher rates to keep deposits). However, if rates fall too far or too fast, it could compress banks’ asset yields. Huntington, like peers, will be navigating this balancing act – enjoying the tail end of high-rate benefits while preparing for a gradual normalization. The bank has managed its interest rate risk carefully, using hedges to protect its margins.
Credit Quality & Economic Outlook: A major overhang on bank stocks in 2023 was fear of a credit crunch – that sharply higher rates would trigger defaults in areas like commercial real estate or consumer loans. By late 2025, the data has been better than feared. The U.S. economy has shown resilience, with unemployment still low and GDP growing modestly, helping most borrowers continue paying their debts. Huntington’s experience reflects this: its nonperforming loan ratio actually ticked down in Q3, and net charge-offs remain at benign levels ^[98]. Many banks, including HBAN, have reported “contained” or improving credit metrics in recent quarters ^[99] ^[100]. For instance, PNC and Citizens both noted double-digit declines in bad loans year-over-year ^[101]. That said, pockets of stress do exist – some smaller banks were hit by defaults in niche areas (e.g. an auto finance firm bankruptcy, which Reuters noted heightened scrutiny ^[102]). Commercial real estate (CRE), especially offices, is a sector under the microscope. Huntington has a CRE portfolio, but it’s more concentrated in strong segments (like retail and industrial, not urban office towers). Management has repeatedly expressed confidence that their credit portfolio is diversified and conservatively underwritten, though they are monitoring macro trends closely.
Regional Bank Sentiment: Despite improved fundamentals, investor sentiment toward regional banks has remained cautious. The fallout from the spring 2023 regional bank failures (Silicon Valley Bank, etc.) cast a long shadow. All year, regional bank stock valuations have been depressed relative to the broader market. As of late October, the S&P Regional Banks Index was down mid-single-digits percent for 2025 ^[103], underperforming the S&P 500. Huntington’s own stock, as noted, is roughly flat to slightly down on the year. This reflects that investors are demanding a higher risk premium given memories of liquidity scares and worries that something might still break in the financial system. However, Q3 earnings season has provided a boost: many banks (Huntington included) posted solid results, helping “ease credit fears” and spark a mini-rally in bank shares ^[104]. A Bloomberg report noted that bank stocks collectively recouped some losses in mid-October after earnings came in better than expected across the industry ^[105]. Huntington’s proactive acquisition move also signals management confidence, which could help sentiment. But until banks prove a few more quarters of stability – and show they can handle any economic slowdown – the sector will likely trade at relatively low multiples.

In summary, Huntington is both driving and benefiting from these industry trends. The bank’s expansion via M&A aligns with the consolidation wave and favorable regulatory winds. Its earnings upswing is part of a broader pattern of banks capitalizing on higher rates and a decent economy. And its stock’s struggles mirror the general skepticism toward banks – which the company is aiming to counter with strong execution and shareholder returns.

Analyst Commentary and Outlook

Financial analysts covering Huntington have been digesting all this news – the earnings beat, the Cadence deal, and the sector backdrop – to update their outlook on the stock. The consensus so far is optimistic with a dash of caution. Here’s a look at what the experts are saying:

Bullish views dominate: The majority of Wall Street analysts maintain “Buy” or equivalent ratings on HBAN, and several have become more bullish post-earnings. For instance, Bank of America Securities analyst Ebrahim Poonawala reiterated his Buy rating on Huntington and raised his price target to $21 (from $20) following the Q3 report ^[106]. Poonawala cited the bank’s “solid financial performance” and noted HBAN’s core EPS of $0.40 beat both firm and consensus estimates – impressive given slight increases in expenses and credit costs ^[107]. He also argued Huntington’s growth potential is not fully reflected in the current stock price, highlighting the bank’s strategic expansion into the Southeast and Texas as laying groundwork for “considerable growth” ahead ^[108]. In other words, this camp believes Huntington is undervalued, trading like a no-growth bank when in fact it’s entering new markets and growing earnings at a healthy clip.

Another upbeat voice, DA Davidson, in a note on Oct. 20 raised its FY2025 EPS estimate for Huntington from $1.49 to $1.51 and maintained a Buy rating with a $21.00 target ^[109]. The analysts there also projected Huntington will earn around $1.67 per share in 2026 (post-merger) ^[110], implying strong future growth. They noted the bank’s quarterly dividend of $0.155 (yield ~3.9%) provides a nice income kicker while investors wait for the upside to play out ^[111]. “We see Huntington’s expansion boosting its earnings trajectory,” the Davidson note said, essentially endorsing the Cadence deal’s accretion to EPS.

Furthermore, several other firms have upped their price targets. Citi, Deutsche Bank, and TD Cowen all moved their targets into the low $20s (around $20–$22) in recent weeks, each reiterating Buy ratings ^[112]. Even firms that are not outright bullish acknowledge Huntington’s solid execution; for example, Keefe, Bruyette & Woods (KBW) raised its target to $20 though they kept a more neutral “Market Perform” stance ^[113]. Overall, the average analyst price target now sits around $19.50–$20 ^[114], roughly 25% above the current stock price – indicating analysts see significant upside if Huntington delivers on expectations.

Why the optimism? Bulls point to several factors: Huntington’s earnings momentum (back-to-back quarters of beats), its above-peer loan growth and market share gains, the strategic rationale of the Cadence acquisition, and a belief that the bank’s credit and capital are being well-managed. Importantly, Huntington’s management has a decent track record with past integrations (it successfully acquired TCF Financial in 2021, for instance). The raised ROTCE targets and synergy projections from the Cadence deal also inspire confidence – analysts at RBC and others see those as credible goals given Huntington’s cost-cutting opportunities and revenue overlap in the merger ^[115]. Additionally, valuation is a big part of the story: trading around 8–9x forward earnings and near book value, HBAN looks inexpensive relative to its 10%+ ROE and ~4% dividend yield ^[116]. Many analysts feel the stock’s current price bakes in a lot of pessimism, so there’s a favorable risk/reward skew if Huntington simply performs steadily.

Cautious notes: Not everyone is fully on board the bull train, however. A minority of analysts urge some caution and stick to neutral or even bearish stances. According to MarketBeat’s compilation, out of 21 analysts there are 3 hold ratings and 1 sell rating on HBAN ^[117]. The lone Sell rating likely reflects concerns that Huntington’s expenses or integration risks could crimp profitability, or a view that the regional bank sector as a whole faces latent risks (for example, if interest rates were to fall rapidly or if a recession hits loan demand).

Those with Hold ratings often point to the fact that Huntington’s net interest margin might have peaked in this cycle – as the Fed starts cutting rates, banks could see pressure on lending yields which might outpace the relief on deposit costs. Additionally, Huntington is now growing into a much larger bank, which could eventually bring higher regulatory compliance costs and potentially limit share buybacks as it accumulates capital for the Cadence integration. Some also note that expense control will be key: Huntington’s noninterest expense base has grown with acquisitions and tech investments, and skeptics want to see operating leverage (revenue growing faster than costs) to be convinced of sustained earnings growth.

Investor reaction vs. analyst view: The divergence between what many analysts are saying (bullish outlook) and the stock’s underperformance in recent months (market skepticism) is an interesting dynamic. It suggests that if Huntington continues to execute well – meeting the optimistic forecasts – its stock could have significant room to rerate higher. Conversely, any stumble (like a bad quarter or issues integrating Cadence) could validate the bears’ concerns and keep the stock languishing. For now, the balance of commentary from experts leans positive. The consensus rating stands at a “Moderate Buy” and the sentiment is that Huntington is a well-run bank navigating its growth strategy prudently, but the stock will need a catalyst (successful integration, continued earnings beats, or improving macro conditions) to break out of its trading funk.

Notably, some analysts have started including qualitative considerations in their HBAN theses. For example, JPMorgan’s team (not publicly quoted here) has mentioned Huntington’s strong deposit franchise – it has a sticky retail deposit base in the Midwest that has proven more resilient than some coastal banks’ deposits during industry turmoil. This could be a competitive advantage if economic stress returns. Others point to management quality: CEO Steinour is one of the longer-tenured bank CEOs, and his steady leadership is often cited as a plus, especially during integrations of acquired banks. These factors contribute to the Street’s relative confidence in Huntington compared to more vulnerable peers.

Peer Comparison: How HBAN Stacks Up

Huntington Bancshares doesn’t operate in a vacuum – it’s one of several prominent regional banks in the U.S. midwest/southeast corridor. To get a sense of the company’s prospects, it’s helpful to compare it with a few peer banks that face similar conditions: Fifth Third Bancorp, KeyCorp, and PNC Financial.

Fifth Third Bancorp (NASDAQ: FITB): Headquartered in Cincinnati, Fifth Third is a close peer in size and market overlap. Like Huntington, Fifth Third reported strong Q3 earnings and is pursuing M&A to expand. In fact, as noted, Fifth Third announced a $10.9B acquisition of Comerica earlier in October – a deal even larger than Huntington’s Cadence buy ^[118]. That will vault Fifth Third’s asset base well past $300B, making it one of the biggest regionals. Fifth Third’s strategy is akin to Huntington’s: use acquisitions to enter new markets (Comerica gives it a foothold in Texas and California) and drive efficiency. Both banks are benefiting from healthy loan growth and higher interest income. Where they differ is valuation – FITB’s stock, like HBAN, trades at a single-digit P/E and around 1x book, reflecting similar investor caution. In terms of performance, Fifth Third’s stock is also down slightly YTD, though the Comerica deal initially caused a pop then a pullback (similar pattern to HBAN). Analysts view Fifth Third and Huntington in a similar light: solid franchises with upside if integrations go well. The fact that two Ohio-based banks are making big acquisitions in 2025 underscores a regional ambition to compete at a national level.
KeyCorp (NYSE: KEY): Based in Cleveland, KeyCorp is another regional bank of comparable scale (around $190B in assets). Key has not announced any major acquisitions recently, choosing a more organic growth path. In Q3 2025, KeyCorp also beat earnings estimates, posting $0.41 EPS vs $0.38 expected ^[119], indicating it too is navigating the environment well. Key’s stock, however, has been one of the weaker performers among peers over the past year. Investors have been concerned about KeyCorp’s relatively large exposure to commercial real estate loans and some pressure on its net interest margin. During the banking turmoil of 2023, KEY shares were hit harder (at one point down over 50% from their highs), and they have only partially recovered. As of Oct 2025, KeyCorp’s dividend yield is quite high (well over 5%), suggesting the market assigns it a riskier profile. By contrast, Huntington’s loan portfolio is more consumer- and commercial-diversified, and its interest margin expanded in Q3, whereas Key’s was flatter. Nonetheless, KeyCorp’s recent results show improvement – it grew revenue and surpassed forecasts on both interest and fee income ^[120]. If credit losses remain low, Key could surprise to the upside. But between the two, analysts generally favor Huntington for its more defensive balance sheet and now its catalytic growth moves (Key is often seen as lacking a clear next growth driver).
PNC Financial Services (NYSE: PNC): Pittsburgh-based PNC is larger than Huntington (over $550B in assets) and is considered a super-regional bank. PNC operates in many overlapping markets (Midwest, Mid-Atlantic, Southeast) and competes for similar customers. PNC’s scale and diversified services (including a sizable wealth management arm) make it somewhat more insulated; however, PNC also felt the industry pressures this year. PNC’s Q3 profit jumped on strong interest income, much like HBAN ^[121]. One difference: PNC has been more cautious on M&A after digesting BBVA’s U.S. operations in 2021. In 2023 PNC actually walked away from bidding on a failed bank, signaling discipline. So while Huntington aggressively expands via Cadence, PNC has focused on organic growth and share buybacks. In terms of stock performance, PNC’s shares are down year-to-date but by a smaller percentage than many peers, reflecting its perceived stability. PNC trades at a higher absolute stock price (~$120) and modestly higher P/E (around 10–11x forward) than HBAN, partly due to its larger scale. For investors, Huntington may offer more “torque” – i.e. bigger potential upside percentage – if conditions normalize, whereas PNC might be viewed as a steadier, lower-risk pick. It’s worth noting that PNC’s dividend yield (~4.5%) is comparable to Huntington’s (~4%), indicating both reward shareholders with income. Both PNC and HBAN have emphasized their credit quality is strong; PNC actually reported a decline in loan charge-offs year-over-year, similar to Huntington’s trend ^[122].

In summary, Huntington holds its own against these peers. It is smaller than PNC but now leaping ahead of KeyCorp and nearly catching up to Fifth Third in size after its acquisitions. On growth metrics, HBAN’s loan and deposit growth (high single digits annually) outpaced many peers, thanks in part to strategic initiatives and market share gains ^[123]. On profitability, Huntington’s return on equity (~12% last quarter) is solid, and the ROTCE is projected to rise to ~18% post-deal ^[124] – which, if achieved, would be top-tier among regionals. Peers like PNC and Fifth Third have ROTCEs in the mid-teens, so Huntington is shooting for a higher bar.

Valuation-wise, all these regional bank stocks are trading at historically low multiples, a reflection of the macro overhang. Huntington, Fifth Third, Key, and PNC each offer dividend yields around 4–5%, which is elevated compared to the S&P 500 and implies the market is skeptical about their growth or is demanding more income to hold them. If Huntington proves the skeptics wrong by executing flawlessly and growing earnings via Cadence, it could see a re-rating more in line with historical norms (for example, 1.3–1.5x book value instead of ~1x). Peers would likely rise too in that scenario. Conversely, if a negative shock hits the banking system, all boats could fall with the tide – though Huntington’s stronger deposit franchise and proactive moves might leave it better positioned than some.

HBAN Stock: Fundamental and Technical View

From an investor’s perspective, Huntington Bancshares presents an interesting mix of strong fundamentals and a still-muted stock valuation. The fundamental case for HBAN has strengthened in 2025: the bank is growing earnings at a double-digit clip, maintaining decent credit quality, and now expanding its franchise for future gains. Yet the stock hasn’t fully reflected this, arguably due to wider sector concerns. Let’s break down key aspects:

Fundamentals & Valuation: On a fundamental basis, Huntington appears attractively valued relative to its performance. With analysts expecting around ~$1.50 in EPS for 2025 (and $1.65+ in 2026) ^[125] ^[126], the stock’s current price in the mid-$15s equates to a forward P/E ratio under 10. That’s well below the broader market average and even below Huntington’s own historical average multiple. For a bank delivering high-teens percentage ROTCE and growing earnings, that P/E suggests investors remain cautious. Additionally, Huntington’s stock trades around 1.0 times tangible book value (TBV) – the Q3 TBV per share was about $9.54 ^[127], which will dilute to roughly $9.00 post-merger, against a share price of $15–16. Many banks typically trade at 1.2–1.5x TBV in normal times, so Huntington’s ~1x indicates a conservative appraisal by the market. In other words, the stock is priced as if significant risks persist or growth will stall. If those risks abate, there is potential upside as valuation normalizes.

Meanwhile, investors are paid to wait via the dividend yield near 4% ^[128]. Huntington has a consistent dividend history (it even slightly increased the payout in 2024) and a payout ratio that leaves room for further growth. Its dividend yield, combined with share price appreciation potential, could make for a compelling total return if things go right.

Balance sheet strength: A quick check on Huntington’s balance sheet shows it is in a solid position. The Common Equity Tier 1 (CET1) ratio was 10.6% at Q3 ^[129], comfortably above regulatory minimums. Post-Cadence, CET1 will dip slightly (management said “mild dilution”), but remain healthy. Liquidity is ample; Huntington’s loan-to-deposit ratio is around 80% – meaning it has more deposits than loans, a cushion that helped during the spring bank runs. And unlike the failed banks of 2023, Huntington has a much smaller percentage of uninsured deposits and a more stable retail deposit base, which reduces the risk of sudden outflows. The bank has also managed interest rate risk on its securities portfolio by hedging and not overextending on long-duration bonds.

Technical factors: The technical picture for HBAN stock has been weak in the short term, as mentioned. Trading below its 50-day and 200-day moving averages signals a downtrend intact. Some technicians might wait for a break back above those averages (around $17 and $13 respectively for the 50- and 200-day) as a sign of a trend change ^[130]. Volume spiked on the merger news, suggesting active trading and some likely short-term volatility. It’s possible we’ll see a base-building phase as investors digest the new information. The stock’s relative strength index (RSI) recently entered oversold territory during the early-October selloff, then improved after earnings, but could be dipping again with this week’s pullback – a pattern of lower highs and lows. For long-term investors, these technical swings may be less important than the fundamental trajectory.

One notable aspect is short interest: short sellers had increased bets against regional bank stocks earlier in the year. Any signs of continued stabilization or good news (like smoothly integrating Cadence) could force some shorts to cover, providing upside fuel. Conversely, if bank stocks come under pressure again due to macro events, Huntington could temporarily fall further regardless of its own performance (as was seen in past panics).

Comparative metrics: In terms of ratios like price-to-earnings and price-to-book, we already noted Huntington is at the lower end of the spectrum, similar to peers. On a price-to-assets basis, HBAN’s market cap (~$23.5B at present ^[131]) is about 8.5% of its total assets ($276B pro-forma), which is in line with many banks (banks often trade around 8-10% of assets, given typical ROA of ~1%). Huntington’s return on assets (ROA) was 1.19% in Q3 ^[132], which is quite strong for a regional bank (anything above 1% is considered solid). Return on equity was ~12.4% ^[133] – also good, but with ROTCE targeted at 18% post-merger, that could meaningfully improve. If Huntington hits that, it would justify a higher P/TBV multiple. Efficiency ratio (costs as % of revenue) is another metric: Huntington’s was around 60% this quarter, typical for regional banks, and management aims to bring it down with cost synergies.

In summary, the fundamentals paint Huntington as a fundamentally sound, growing bank that the market is pricing cautiously. The undervaluation argument hinges on the bank continuing to deliver and nothing major going wrong in the economy or integration. That leads naturally into a discussion of the bull and bear cases.

Bull vs. Bear Case for Huntington Bancshares

Like any stock, HBAN has both its enthusiastic supporters and its wary skeptics. Here are the key points underpinning the bullish case and the bearish case for Huntington, as of now:

Bull Case

Strong Earnings Momentum: Huntington has strung together robust quarters, with Q3’s 22% profit jump and earnings beat affirming the bank’s ability to grow in the current environment ^[134] ^[135]. Core businesses are firing on all cylinders (loans, net interest margin, fees), suggesting the bank is fundamentally on solid footing. Bulls believe this momentum will carry into 2026, fueled by the merger and organic growth.
Strategic Expansion & Market Diversification: By acquiring Cadence (and Veritex earlier), Huntington is entering high-growth markets in the South and Texas that could provide years of new business opportunities. The bank is no longer confined to slow-growth Rust Belt regions; it now has access to booming metropolitan economies like Houston, Dallas, Atlanta, and Miami via Cadence’s footprint ^[136]. This diversification could boost long-term loan and deposit growth beyond what Huntington could achieve in Ohio and Michigan alone. “Extending the franchise to 21 states” opens the door to new customers and revenue streams ^[137]. Bulls argue the market underappreciates how valuable this broader footprint will be as the Southeast continues to grow faster than the national average.
Synergy and Scale Benefits: The Cadence deal is projected to be immediately accretive to EPS (roughly +10%) ^[138], and Huntington has a roadmap to extract cost savings and cross-selling benefits. Management’s confidence is evidenced by raising ROTCE targets to 18–19% ^[139] – if achieved, that’s an excellent return level which should warrant a higher stock valuation. The cost synergies (branch consolidations, overhead cuts) are relatively low-hanging fruit that Huntington has executed well in past mergers, so there’s credibility to hitting those targets. Plus, larger asset size can improve operating efficiency (economies of scale in tech, marketing, etc.) and give Huntington more clout in commercial lending deals.
Analyst and Insider Confidence: As discussed, the vast majority of analysts covering HBAN are bullish, with price targets in the $20+ range ^[140]. This broad positive sentiment from industry experts provides some validation to the bull thesis. Bank of America’s analyst specifically said Huntington’s valuation “is not fully reflecting the company’s growth potential”, referencing its expansion moves ^[141]. Additionally, if any insiders (executives or board members) show conviction by buying shares on weakness, that would further reinforce the bull case (though we haven’t seen reports of that yet). The bottom line: the professional investing community largely sees Huntington as a quality franchise undervalued.
Resilient Credit and Dividend Support: Huntington has navigated credit challenges well so far – asset quality is strong, and management expects stable loan performance ahead ^[142]. This reduces the risk of a negative earnings surprise due to bad loans. The bank also has a solid capital buffer and earnings power to comfortably cover its dividend. At ~4% yield ^[143], the dividend pays investors while they wait for stock appreciation, and there’s even room for dividend growth in the future (Huntington increased its payout in the past when conditions allowed). For bulls, HBAN’s dividend is both a sign of management’s confidence and a mechanism that could attract income-focused investors, putting a floor under the stock.
Sector Recovery Tailwinds: Many bullish investors believe that regional bank stocks as a whole are due for a re-rating upwards if recession fears subside. As the Fed eases off and if the economy avoids a hard landing, banks could enjoy the “goldilocks” scenario of steady loan growth, high (but not too high) interest rates, and low credit losses. In such a scenario, all regional bank stocks could rebound, and Huntington, being one of the stronger performers fundamentally, could lead the pack. With HBAN trading at depressed multiples now, any shift to a more positive market sentiment on banks could quickly boost the stock (multiple expansion). Essentially, bulls see a coiled spring: a fundamentally good bank held down by external sentiment, poised to jump when that sentiment turns.

Bear Case

Integration and Execution Risks: The flip side of Huntington’s expansion is the risk of biting off more than it can chew. The Cadence acquisition, coming hot on the heels of the Veritex deal, means Huntington will be integrating two banks at once across different geographies. Execution missteps – from IT systems integration to cultural clashes or customer attrition – could erode the expected benefits. Bears note that large bank mergers can be fraught; if costs run higher or synergies take longer to realize, the projected 10% EPS accretion might not materialize on time. There’s also integration distraction risk: management might be so busy merging that core business momentum slows. The stock’s drop on the deal news (–4% vs. +2% for Cadence) reflects these investor wariness about execution ^[144]. In short, Huntington now has to prove it can smoothly combine these franchises without disrupting its operations.
Short-Term Dilution and Capital Impact: While the Cadence deal makes strategic sense, it will dilute existing shareholders in the near term (since new shares are being issued). Huntington expects about a 7% hit to tangible book value at closing ^[145], which means a step backward in book value per share that could weigh on valuations initially. Regulatory capital ratios will dip modestly, and though still safe, it could mean slower dividend growth or share buybacks in the interim as the bank rebuilds capital. Bears argue that investors often don’t reward bank stocks for deals until the benefits are clearly realized, which could be a year or more out. So HBAN stock might stagnate until integration milestones are hit, tying up capital that could have been used for buybacks or organic growth. Essentially, the payoff is delayed, and in the meantime any number of things could go wrong.
Macro and Interest Rate Risks: The broader economic environment remains a wildcard. If the economy slips into a recession in 2026, even a mild one, banks will feel it. Loan growth would slow or reverse, and credit losses would rise, directly hurting earnings. Given that Huntington is expanding into commercial lending markets like Texas, a downturn in oil prices or local economies could spike defaults. Additionally, while current Fed policy is supportive, there’s a risk of policy error: if inflation resurges or if rate cuts overshoot, banks could face renewed margin pressure. Net interest margins are at risk if the yield curve inverts further or if competitive pressures force banks to keep deposit rates high while loan yields drop. Bears point out that Huntington’s stellar NIM expansion will be hard to repeat; in fact, most expect NIM to gradually compress from here as higher-cost deposits reprice. The tailwind of rising rates is gone, and a sharp fall in rates could squeeze income (though it helps other areas). In summary, the macro backdrop could turn from friend to foe, and bank stocks would likely underperform in a recessionary or unpredictable rate scenario.
Credit Quality Concerns – Not Gone Yet: Yes, credit has been fine so far, but bears worry that some credit pain may just be delayed rather than avoided. Certain sectors, like commercial real estate (office buildings, etc.), are under significant stress that might not fully hit banks’ books until leases expire and values reset. Huntington isn’t overly exposed to office loans, but it’s not immune to CRE in general. Also, consumer finances, while currently healthy, could deteriorate if unemployment rises. Auto loan defaults could tick up (especially with car prices normalizing), and Huntington has a sizable auto lending portfolio (it’s a top auto loan issuer in its region). Recall that industry jitters recently were sparked by auto-related bankruptcies and fraud issues that “dragged lender stocks lower” ^[146]. Should any similar event or another unexpected credit issue emerge, Huntington could get caught in the downdraft or even have a direct loss. Bears argue that with HBAN expanding lending quickly (9% YoY loan growth), there’s a risk standards slipped and some of that growth could turn sour under stress. They also note Huntington slightly increased its loan loss reserves this quarter, which could be a sign it anticipates some normalization of credit costs.
Valuation Trap / Sector Overhang: From the bearish viewpoint, Huntington’s low valuation isn’t an opportunity – it’s a reflection of legitimate risks and the market’s lack of trust in the banking sector right now. They might call HBAN a “value trap”: it looks cheap, but could stay cheap or get cheaper. The regional bank sector has faced structural challenges (e.g. competition from fintechs, heavier regulation, and fickle depositor behavior in a digital banking age) that might warrant lower multiples permanently. Furthermore, any negative headlines (another bank failure, a regulatory crack-down, etc.) can swiftly punish all bank stocks. Bears also note that some analysts have been too optimistic before, and that earnings estimates could be too high if the rate environment changes or if costs surprise. If Huntington fails to hit the rosy expectations set (like $1.51 EPS next year ^[147]), the stock could lag even more. Essentially, the bear case says: “Yes, Huntington is a good bank, but the world around it is uncertain and the stock’s not going anywhere fast.”

In weighing these cases, it often comes down to one’s confidence in management and the macro outlook. Huntington’s management has a reputation as prudent operators – those inclined to trust Steinour & team will lean toward the bull case, believing they’ll execute the Cadence integration and continue delivering growth. Those more skeptical will focus on external risks and the execution challenges, leaning bearish until evidence proves otherwise.

Conclusion

Huntington Bancshares has entered late 2025 as a bank on the move: moving into new markets, moving its earnings higher, and trying to move its stock out of a slump. The Q3 earnings beat demonstrated the bank’s resilience and growth under favorable conditions. The surprise Cadence Bank acquisition shows an ambitious vision to expand and become a leading regional powerhouse. These are exciting developments that could redefine Huntington’s trajectory for years to come.

For now, HBAN’s stock is something of a battleground between short-term caution and long-term optimism. In the short term, integration questions and sector unease are weighing on shares – evident in the lukewarm reaction to huge news like a $7.4B merger. But longer term, if Huntington delivers on its promises, investors could be rewarded with a bigger, more profitable bank that the market will eventually have to re-rate.

The road ahead will be telling. Keep an eye on upcoming earnings (to see if core trends hold), merger updates (any early hiccups or smooth sailing), and the macro winds (interest rate moves, economy signals). Huntington Bancshares has navigated many economic cycles in its 157-year history, and it’s clearly positioning itself for the future with bold moves today. Whether you side with the bulls or the bears, HBAN will be a financial stock to watch as the regional banking saga of 2025 continues to unfold.

Sources: Huntington Q3 Earnings Release and Reuters coverage ^[148] ^[149] ^[150]; TS2.tech Banking News ^[151] ^[152] ^[153]; Reuters M&A report ^[154] ^[155]; MarketBeat analyst summary ^[156] ^[157]; Insider Monkey analyst commentary ^[158] ^[159]; Nasdaq/Dividend data ^[160]; ChartMill market reaction analysis ^[161] ^[162].

Huntington Bank CFO: Q2 Earnings Were "Phenomenal"

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Mateusz Kaczmarek Latest posts

A technology and finance expert writing for TS2.tech. He analyzes developments in satellites, telecommunications, and artificial intelligence, with a focus on their impact on global markets. Author of industry reports and market commentary, often cited in tech and business media. Passionate about innovation and the digital economy.

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