Huntington Lowers Earnings Outlook Amid Fed Rate Hike, Raising Concerns Over Regional Bank Margins
On September 16, 2026, Huntington Bancshares (NASDAQ:HBAN) cut its earnings guidance for both 2026 and 2027 amid rising deposit costs and tighter loan pricing. The stock dropped nearly 5.5% to $15.82, nearing a 52-week low following the announcement at a Barclays conference. This move came on the same day that the Federal Reserve delivered its first rate hike since 2023, intensifying concerns about margin pressures for regional banks. The guidance cut reflects broader challenges in the banking sector as higher interest rates increase deposit costs and squeeze net interest margins before loan yields can fully adjust. Fifth Third shares also fell on the same day, signaling potential industry-wide stress. However, Huntington has built a cushion through strong fee income growth—up 32% year-to-date—which helps offset margin pressures. Despite the near-term challenges, Huntington remains well-positioned with $189 billion in loans and $222 billion in deposits as of September 2026. Analysts suggest watching Q3 results closely for signs that fee income can support earnings stability even amid a higher-for-longer rate environment.
Tickers: $HBAN
Topics: earnings_guidance interest_rates net_interest_margins