Huntington Forecasts Strong Second Half Performance After Deposit Cost Hike
After experiencing higher deposit costs that impacted second-quarter results, Huntington Bancshares is optimistic about a strong finish to 2026. The Columbus-based bank completed the system conversion for its recent acquisition of Cadence Bancorp in late June, which executives believe will drive growth and operational efficiency moving forward. Huntington reported Q2 net income of $727 million, up 39% from March's quarter, with loan and deposit balances showing organic growth. However, rising funding costs led to a slight contraction in the bank’s net interest margin. CFO Zach Wasserman noted that while full-year spread income is expected to fall slightly below guidance due to higher deposit rates, fee-based revenue should help offset this weakness. The company anticipates strong earnings per share performance in Q4 2026 as loan and deposit growth continues alongside a stable-to-rising net interest margin. Huntington’s CEO Steve Steinour called the Cadence conversion "the largest we've ever done" and emphasized its role in enabling more dynamic management of operations.
Tickers: $HBAN
Topics: deposit costs earnings loan growth merger integration