HBAN earnings analysis
What we found in HBAN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Huntington delivered strong acquisition-supported revenue, NII, deposit, loan, and operating-cash-flow growth in Q2, with GAAP revenue of $2.837 billion and FTE NIM of 3.21%. However, GAAP diluted EPS fell to $0.33 from $0.34 as $152 million of acquisition costs and higher operating expenses weighed on results. Credit quality softened, with NPAs reaching $1.612 billion and annualized net charge-offs rising to 0.25%, while consolidated CET1 fell to 10.0%. Item 1A states there were no material changes to risk factors previously disclosed in the 2025 10-K.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated sequentially and year over year
- GAAP total revenue was $2.837 billion in Q2, up $899 million, or 46%, from $1.938 billion in Q2 2025 and approximately 10% from implied Q1 2026 GAAP revenue of $2.573 billion. FTE revenue was $2.857 billion, up 46% year over year, though acquisition effects were substantial.
- NII and margin expanded
- Net interest income increased $585 million, or 40%, year over year to $2.052 billion, while FTE NIM expanded 10 basis points to 3.21%. Management attributed the increase to $67.5 billion of higher average earning assets and lower funding costs, partly offset by lower earning-asset yields.
- Noninterest income grew across major categories
- Fee income strengthened: noninterest income rose $314 million, or 67%, to $785 million. Capital-markets and advisory fees increased $56 million, payments and cash-management revenue increased $39 million, and mortgage-banking income increased $25 million.
- Cash generation improved with modest capex
- Operating cash flow was $1.647 billion for the first six months of 2026, up $580 million from $1.067 billion a year earlier. Premises-and-equipment purchases were $220 million, or roughly 13% of operating cash flow, leaving approximately $1.427 billion of operating cash flow after that capex measure; the company does not report FCF as a defined metric.
- Liquidity and deposits expanded
- Balance-sheet liquidity increased: cash and cash equivalents rose $2.104 billion from year-end to $15.599 billion, and selected contingent liquidity sources increased to $127.638 billion from $110.963 billion. Deposits increased $45.856 billion, or 26%, to $222.466 billion, principally including $43.530 billion acquired in Cadence.
- Cadence acquisition materially expanded scale
- The Cadence transaction added scale, with $51.346 billion of assets and $36.912 billion of loans acquired on February 1, 2026. It also generated preliminary goodwill of $3.497 billion and an $855 million core-deposit intangible asset.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- GAAP EPS declined amid integration costs
- Reported diluted EPS was $0.33, down $0.01, or 3%, from $0.34 a year ago, despite revenue growth; it improved from $0.25 in Q1 2026. Q2 included $152 million of acquisition-related expense, reducing diluted EPS by $0.06 per share.
- Nonperformers and charge-offs increased
- Credit metrics weakened: nonperforming assets rose $667 million, or 71%, from year-end to $1.612 billion, while the NPA ratio increased to 0.85% from 0.63%. Net charge-offs increased to $119 million, or 0.25% of average loans, from $66 million and 0.20% a year earlier.
- Capital ratio declined as RWA expanded
- The consolidated CET1 ratio declined 40 basis points to 10.0% from 10.4% at year-end as risk-weighted assets rose to $214.138 billion from $166.684 billion. The decrease reflected loan growth, the Cadence acquisition, and share repurchases.
- Expense growth outpaced efficiency
- Cost pressure remains elevated: Q2 noninterest expense increased $612 million, or 51%, to $1.809 billion, and the efficiency ratio worsened to 61.5% from 59.0% a year ago. Even excluding $152 million of acquisition-related expense, costs increased $460 million, or 38%.
- Macroeconomic downside could require higher reserves
- Management's adverse credit scenario would hypothetically increase the quantitative ACL by approximately $1.3 billion, excluding qualitative adjustments. The scenario assumes unemployment peaks at 8.5% in Q2 2027, versus the baseline forecast of 4.6% at year-end 2026.
- Cadence litigation carries sizeable claimed damages
- A legacy Cadence legal proceeding seeks approximately $350 million of compensatory damages plus punitive damages, with trial scheduled for November 4, 2026. Huntington estimates aggregate reasonably possible losses of $0 to $75 million above accrued liabilities for matters where a range can be estimated.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.33
- Segment
- Consumer & Regional Banking: six-month net income of $1.010 billion, up $394 million or 64% year over year; net interest income rose $866 million or 44% to $2.823 billion.
- Segment
- Commercial Banking: six-month net income of $708 million, up $156 million or 28%; net interest income rose $333 million or 32% to $1.359 billion.
- Segment
- Treasury / Other: six-month net loss of $468 million, versus a $105 million loss a year earlier, reflecting acquisition-related expenses and a $149 million larger net interest loss.
What they said about what is next.
The 10-Q provides no new quantitative revenue or EPS outlook. Management states that it believes liquidity is sufficient for obligations over the next 12 months and for the foreseeable future, but does not provide earnings guidance.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 30, 2026
- Huntington Bancshares reported a mixed Q1 2026, with net income of $523 million ($0.25 EPS), down from $527 million ($0.34 EPS) a year prior. While net interest income rose by 33% to $1.891 billion driven by increased…
- 10-K · February 13, 2026
- Huntington’s 2025 Form 10-K highlights inorganic expansion and improving margins: the Company completed the Veritex acquisition (added $12.0 billion of assets, including $9.3 billion of loans and $10.5 billion of…
- 10-Q · April 29, 2025
- Huntington reported a stronger quarter vs the year-ago period: total revenue (FTE) of $1,935 million (+$168M, +10%), diluted EPS of $0.34 vs $0.26 (+$0.08, +31%), and net interest income of $1,426 million (+$139M,…
- 10-K · February 16, 2024
- Huntington’s 2023 10-K emphasizes a people-first, digitally powered regional banking strategy (OCR sales model and “Fair Play” product suite) and an organizational realignment in Q2 2023 into two reportable segments…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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