NEW YORK, July 24, 2026, 16:11 EDT
- Huntington ended regular U.S. trading at nearly $17.36, falling approximately 4.9% over the week.
- Organic deposits increased by 1.8% from the previous period, compared with a 1.2% rise in organic loans.
- Deposit costs increased by six basis points as net interest margin declined by three.
Huntington Bancshares Incorporated NASDAQ:HBAN finished trading on Friday at approximately $17.36, marking a weekly decline of around 4.9%. The slide came after Thursday’s earnings report. Market attention centered on rising funding expenses and a more cautious outlook for spread income.
The key issue for investors revolves around timing, as organic deposits increased at a quicker rate than organic loans. This difference indicates Huntington secured funding prior to a rise in loan demand. As a result, the bank is facing higher present deposit costs.
A 4.8% drop on Thursday accounted for most of the week’s losses. The S&P 500 Index retreated 1.2% on the same day. Huntington’s trading volume hit 68.6 million shares, higher than the 50-day average of 22.0 million.
Net income for the second quarter increased 39% from the previous quarter to $727 million. Adjusted earnings amounted to 39 cents a share. Net interest income grew 40% on the year to $2.05 billion.
Noninterest income climbed 15% from the prior quarter to $785 million, reflecting faster growth in fees. Capital markets and advisory fees were the primary drivers of the annual gain.
Growth in headline balance sheet was primarily driven by acquisitions. Average loans increased 42% compared to a year earlier, factoring in acquired portfolios. Excluding these, organic loan growth was just 1.2% from the previous quarter, while deposits advanced 1.8%.
| Measure | Q2 2026 | Q1 2026 | Sequential change |
|---|---|---|---|
| Net interest margin | 3.21% | 3.24% | -3 bps |
| Deposit cost | 1.88% | 1.82% | +6 bps |
| Noninterest income | $785 million | $682 million | +15% |
| Fee revenue as percent of total | 27.7% | 26.5% | +1.2 points |
Revenue is calculated as the sum of net interest income and noninterest income. Fee shares are based on rounded figures as reported.
Company data indicate that fees contributed approximately 39% of the quarter-on-quarter increase in revenue. Meanwhile, spread income accounted for around 72% of total revenue in the second quarter.
The stock movement is due to this combination. Solid fee performance provided support, yet it was not enough to counter weaker spread outlooks.
Executives indicated that spread-income growth for the full year might end up around the lower boundary of earlier projections. The previous outlook anticipated growth between 37% and 43%. Final results could come in “a touch below” 37%. American Banker
Chief Financial Officer Zach Wasserman described the 3.21% margin as the “trough.” He anticipates improvement in the margin over the second half. “I expect fourth-quarter earnings per share to be very strong,” he said. American Banker
CEO Steve Steinour stated that loan pipelines remained “robust” moving into the second half. Huntington finalized the Cadence systems conversion in mid-June. Reuters
Analysts remained cautious following the report. On Friday, Stephens analyst Matt Olney lowered his price target to $19 from $20, maintaining an Equal Weight rating. He stated that competition provides “little room for error.” StreetInsider.com
The decline was not prompted by credit quality concerns. Net charge-offs stood at 0.25%, down by one basis point compared to the previous quarter. Nonperforming assets, however, increased by 13 basis points to reach 0.85%.
Huntington’s narrowing margins ran counter to the wider trend among regional banks. Across the industry, net interest margins mostly rose in the second quarter.
The Federal Reserve will hold its July 28-29 meeting next week. On Thursday, the government releases its initial estimate for second-quarter GDP, along with June data on income and spending. Traders remain focused on rates and competition for deposits.
Risks are still primarily tied to funding and acquisition delivery. A quicker pace of deposit repricing or reduced demand for loans could push back the anticipated margin recovery. The CET1 ratio dropped to 10.0% from 10.2%, and nonperforming assets rose.
