Huntington Bancshares Soars to 52-Week High on Q4 Earnings Beat
The regional bank posted a 14% surge in net interest income, signaling strong momentum and easing investor concerns over the interest rate environment.
Huntington Bancshares Inc. (NASDAQ: HBAN) shares surged more than 4% in Tuesday trading, touching a new 52-week high after the Columbus, Ohio-based lender reported fourth-quarter results that surpassed analyst expectations and signaled robust growth heading into the new year.
The bank's stock climbed to $18.77, reflecting investor optimism after it posted an adjusted earnings per share of $0.37, comfortably beating the Wall Street consensus of $0.33. The strong performance was underpinned by a significant 14% year-over-year increase in net interest income (NII), a critical measure of bank profitability that highlights the difference between interest earned on loans and interest paid on deposits.
This growth in NII to $1.52 billion for the quarter suggests Huntington is effectively navigating the higher interest-rate landscape that has pressured other regional banks. The results offer a dose of confidence for a sector that has been under intense scrutiny over the past year.
"Huntington delivered a strong fourth quarter, capping off an outstanding 2025, powered by focused execution and broad-based organic growth," said Stephen D. Steinour, the company's chairman, president, and CEO, in a statement. Steinour's commentary from the company's press release emphasized the bank's operational strength and strategic advancements.
Total revenue for the quarter was a mixed picture on the surface. While NII showed impressive gains, total revenue was impacted by a 7% sequential decrease in noninterest income to $582 million. However, investors appeared to focus on the core profitability driver and the optimistic forward-looking statements from management.
Beyond the headline numbers, Huntington's balance sheet showed continued expansion. Average total loans and leases grew by 8% from the prior quarter to $146.6 billion. The bank also maintained what its leadership termed "outstanding" credit quality, a key focus for investors analyzing bank stocks. The allowance for credit losses (ACL) increased to $2.7 billion, or 1.83% of total loans, a move that suggests prudent provisioning for potential future economic headwinds.
Analysts had entered the earnings season with a largely positive view on Huntington. The company holds a "Buy" consensus rating, and recent price target upgrades from firms like Wolfe Research and Goldman Sachs ahead of the report already pointed to growing confidence. Pre-earnings analyst sentiment was bullish, with an average price target hovering between $19 and $20, a range the stock is now firmly approaching.
Steinour also highlighted the bank's strategic expansion into high-growth markets. "Our recent partnerships with Veritex and Cadence will springboard our growth across Texas and the South, and both integrations are proceeding smoothly," he noted, signaling a continued push to diversify Huntington's geographic footprint beyond its traditional Midwest stronghold.
Looking forward, the bank's leadership expressed confidence about its trajectory for 2026. "We entered the year with excellent momentum and our backlogs and pipeline are robust," Steinour concluded. "We are very well positioned to deliver exceptional profitability and long‑term value."
Investors will be watching closely to see if Huntington can maintain its NII growth and strong credit performance as the year progresses and as the Federal Reserve's interest rate policy continues to evolve. For now, the strong fourth-quarter finish has set a high bar and positioned Huntington as a standout performer in the regional banking sector.