New York, January 24, 2026, 09:30 EST — Market closed
Huntington Bancshares Incorporated announced it has secured all necessary regulatory approvals for its merger with Cadence Bank. The company also revealed a new debt securities offering, adding to the list of potential catalysts for HBAN shares when U.S. markets open Monday. 1
Timing is crucial as the deal financing and merger deadline clash with ongoing turmoil in U.S. regional lender rates. Investors are grappling with whether loan yields or deposit costs will drop more sharply in 2026, and just how much buffer Huntington holds if margins tighten.
Huntington shares slipped roughly 1.6% on Friday, ending the day at $17.35 as traders absorbed the company’s recent capital decisions ahead of the upcoming session.
The bank said this week it expects interest income to hit a record in 2026 as loan demand picks up and margins widen. Huntington projects net interest income — the difference between earnings on loans and costs on deposits — will climb 10% to 13% this year alone, following $6.06 billion in 2025. It added the Cadence deal could contribute an extra $1.85 billion to $1.90 billion to that full-year forecast once it closes. 2
Huntington posted $519 million in net income for the fourth quarter, translating to earnings of $0.30 per share. Adjusted EPS, factoring in acquisition-related items, came in at $0.37. Deposits climbed by $8.3 billion, a 5% jump from the previous quarter. Net charge-offs held steady at 0.24% of average loans and leases. 3
During the earnings call, CFO Zachary Wasserman noted that “very little of the revenue synergies are baked into the guidance at this point.” He also mentioned plans to kick off “programmatic share repurchases” once the Cadence deal closes. 4
The debt deal was divided into two parts: $1 billion of 4.623% fixed-to-floating senior notes maturing in 2032, and $750 million of 5.605% fixed-to-fixed subordinated notes due in 2041, according to the company’s filing. “Fixed-to-floating” means the coupon rate later shifts to a variable tied to SOFR, a benchmark interest rate; the senior notes will reset in 2031 to the Compounded SOFR Index Rate plus 99 basis points (0.99 percentage point). 5
Huntington announced a quarterly cash dividend of $0.155 per common share, matching the previous quarter’s payout. The dividend is set for April 1, with a record date of March 18. 6
The regional-bank sector showed volatility. The KBW Nasdaq Regional Banking Index dropped roughly 3% Friday, dragged down by First Citizens BancShares, which plunged over 9% after issuing a weak annual interest-income forecast. Truist analyst Brian Foran highlighted ongoing debate about the likelihood of additional Fed rate cuts. 7
Still, risks remain. Huntington flagged typical uncertainties in a prospectus supplement linked to the note offering — factors like interest rates, economic shifts, and other variables that can sway bank funding costs and asset values. Any of these could throw a wrench into the margin outlook investors are trying to gauge. 8
The Federal Reserve’s policy decision on Wednesday, Jan. 28, looms as a key event that could rapidly alter rate expectations and shake bank stocks. 9
