Huntington Q3 Earnings Beat Estimates, NII & Fee Income Rise Y/Y

Huntington Bancshares Incorporated HBAN reported third-quarter 2025 adjusted earnings per share (EPS) of 40 cents, which surpassed the Zacks Consensus Estimate of 38 cents. In the prior-year quarter, the company reported EPS of 33 cents.

Results reflected improvements in net interest income (NII) and non-interest income. Also, an increase in loan and deposit balances was also a tailwind. However, higher non-interest expenses acted as a spoilsport.

The result excluded 1 cent of the after-tax impact of notable Items. After considering this, the net income attributable to common shareholders (GAAP basis) was $629 million in the quarter, which increased from $517 million reported in the prior-year quarter.

HBAN’s Revenues & Expenses Increase

Total quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 13.9% year over year to $2.15 billion in the third quarter. The top line surpassed the Zacks Consensus Estimate of $2.06 billion.

NII (FTE basis) was $1.52 billion, up 11.6% from the prior-year quarter’s tally. The increase was primarily due to a rise in average earning assets and net interest margin (NIM). NIM jumped 15 basis points to 3.13% in the reported quarter.

Non-interest income moved up 20.1% year over year to $628 million.

Non-interest expenses were up 10.3% year over year to $1.24 billion. The rise was mainly due to an increase in almost all cost components except for deposit and other insurance expense. 

The efficiency ratio was 57.4%, down from the year-ago quarter’s 59.4%. A fall in the efficiency ratio indicates an increase in profitability.

HBAN’s Loans and Deposits Increase

As of Sept. 30, 2025, average loans and leases at Huntington inched up 2.1% sequentially to $135.9 billion. Average total deposits increased nearly 1% to $164.8 billion.

HBAN’s Credit Quality: Mixed Bag

Net charge-offs were $75 million, down from $93 million reported in the prior-year quarter. The quarter-end allowance for credit losses increased 5.2% to $2.56 billion from the prior-year quarter. Total non-performing assets were $821 million as of Sept. 30, 2025, up 4.7% from the prior-year quarter.

Net charge-offs/average total loans and leases were 0.22%, down from 0.30% in the prior-year quarter.

In the third quarter, the company recorded a provision for credit losses of $122 million, which increased 15.1% from the year-ago quarter.

HBAN’s Capital Ratios Improve

The common equity tier 1 risk-based capital ratio was 10.6% in the third quarter, up from 10.4% in the year-ago period.

The regulatory Tier 1 risk-based capital ratio was 12.4%, up from 12.1% in the comparable period in 2024.

The tangible common equity to tangible assets ratio in the third quarter was 6.8%, which increased from 6.4% in the year-ago quarter.

Our View on HBAN

Huntington’s inorganic expansion moves are likely to bolster its revenue growth in the near term. Also, its efforts to expand its commercial banking capabilities and enhance its footprint in key growth markets, North Carolina, South Carolina and Texas, will support its financials in the long run. However, rising expenses and provisions remain concerns for Huntington.

Huntington Bancshares Incorporated Price, Consensus and EPS Surprise

Huntington Bancshares Incorporated price-consensus-eps-surprise-chart | Huntington Bancshares Incorporated Quote

Currently, Huntington carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Banks

Synovus Financial Corp.'s SNV third-quarter 2025 adjusted earnings per share of $1.46 surpassed the Zacks Consensus Estimate of $1.36 per share. This compares favorably with earnings of $1.23 per share a year ago.

SNV’s results benefited from strong year-over-year growth in NII and non-interest revenues, along with a fall in provisions for credit losses. Also, improving loan balances was a tailwind. However, an increase in expenses was a major headwind.

First Horizon Corporation’s FHN third-quarter 2025 adjusted earnings per share (excluding notable items) of 51 cents surpassed the Zacks Consensus Estimate of 45 cents. This compares favorably with 42 cents in the year-ago quarter.

The results of FHN benefited from a rise in NII and non-interest income, along with provision benefits. However, a decline in loan and deposit balances acted as a headwind.

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This article originally published on Zacks Investment Research (zacks.com).

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