Huntington Bancshares quarterly profit rises on interest income strength (updated)

Huntington Bancshares

23/04/2026 21:55

Adds CEO quotes, updates shares

April 23 (Reuters) - Huntington Bancshares HBAN.O reported higher first-quarter adjusted profit on Thursday, aided by strong income from interest.

The U.S. Federal Reserve's rate cuts in the second half of 2025 helped banks lower deposit costs and revive loan demand, resulting in relatively stable borrowings for Huntington during the quarter despite broader macroeconomic pressures.

Huntington's $7.4 billion acquisition of smaller rival Cadence Bank, which closed in early February, also likely helped boost the company's yearly net interest income.

The lender's net interest income — the difference between what the bank earns on loans and pays out on deposits — rose 33% to $1.89 billion from a year ​earlier. The bank had previously forecast a record NII in 2026.

CEO Steve Steinour in an interview said the integration of Cadence Bank is expected to be completed in June, when the systems of both banks will be unified. Huntington agreed in July to buy smaller Texas-based rival Veritex Holdings in an all-stock deal valued at $1.9 billion, aiming to expand its footprint in a state that is emerging as a major financial hub.

Its average loans and leases increased 33% to $174.22 billion from a year earlier, Huntington said. Average total deposits rose to $204.62 billion from $161.60 billion.

The bank reported an adjusted net income of $739 million, or 37 cents per share, in the three months ended March 31, compared with $529 million, or 34 cents, a year earlier.

"Now it is the time to grow organically in all these new businesses we bought," the Huntington CEO said.

The bank expects to have up to $1 billion in capital released with implementation of new regulatory capital rules proposed by the Federal Reserve. "It is an estimate because the proposal is not final," Steinour said.

Huntington shares, which have lost about 3.8% in 2026 and underperformed the broader markets, closed about flat at $16.83 on Thursday.

Huntington's board of directors approved a $3 billion share repurchase program on April 22, replacing the prior authorization.

 (Reporting by Tatiana Bautzer in New York and Pritam Biswas in Bengaluru; Editing by Shinjini Ganguli and Bill Berkrot)

 ((Pritam.Biswas@thomsonreuters.com;))