Huntington adjusted earnings per share fall to $0.38 as revenue declines
Key Facts
Huntington Bancshares reported adjusted earnings per share of $0.38 for the third quarter of 2026, down $0.01 from the second quarter, according to the banking group's earnings release. The decline in earnings came as total revenue fell, despite an increase in net interest income during the period. Revenue under generally accepted accounting principles totaled $2,791 million in the third quarter. The group had reported revenue on the same accounting basis of $2,837 million in the second quarter of the year. On a GAAP basis, the quarterly financial supplement showed net income attributable to Huntington of $721 million in the third quarter. GAAP diluted earnings per share were $0.33, compared with the adjusted earnings reported for the same period.
In the revenue breakdown, GAAP net interest income totaled $2,069 million in the third quarter, according to the group's financial supplement. Huntington said in its earnings release that net interest income rose 1% from the previous quarter. The net interest margin, calculated on a fully taxable-equivalent basis, reached 3.25% during the period. Noninterest income, meanwhile, totaled $722 million, down 8% quarter on quarter. The group attributed the decline largely to "lower capital markets fees and unfavorable equity valuation adjustments," putting this component of revenue on a different trajectory from the growth in interest income.
In banking activity, average loans and leases totaled $188,449 million in the third quarter of 2026, according to figures published in the financial supplement. Huntington said the average portfolio declined 0.4% from the second quarter. The group linked the decline to a contraction in commercial real estate and consumer lending during the period. Commercial and industrial loans partially offset the decline, according to its explanation of the change in the lending portfolio. On the deposit side, average balances totaled $223,816 million in the third quarter, up 0.2% from the previous quarter. The group said deposit growth was driven by higher balances in money market and interest-bearing demand accounts, while average loans declined.
Credit metrics showed increases in loan charge-off and nonperforming asset ratios during the period, according to the quarterly financial supplement. The annualized net loan charge-off ratio rose to 0.31% in the third quarter from 0.25% in the second quarter of 2026. The nonperforming asset ratio stood at 0.90% on September 30, 2026, compared with 0.85% on June 30 of the same year. The group recorded a provision for credit losses of $123 million in the third quarter. The allowance for credit losses stood at the equivalent of 1.75% of outstanding loans and leases at the end of September, according to the financial supplement.
On capital returns to shareholders, Huntington said it repurchased $100 million of common shares during the third quarter. The financial supplement also showed a declared cash dividend of $0.155 per common share for the period. The announced repurchases relate to the group's common shares, which its regulatory filing identifies under the ticker HBAN. The ticker HBANL refers to depositary shares representing preferred shares, according to Huntington's filing. The common share repurchases and cash dividends thus appear in the group's results alongside a separate instrument representing preferred shares.
On regulatory capital, the common equity tier 1 capital ratio stood at 10.1% on September 30, 2026, according to the financial supplement. Huntington described the ratio as preliminary among its period-end metrics. Its disclosure accompanies the group's third-quarter results and data on its lending portfolio, deposits and credit quality. According to its investor events page, Huntington scheduled its conference call to discuss quarterly results for October 22, 2026. The call is scheduled to begin at 9:00 a.m. Eastern Daylight Time.