Huntington Bancshares announced on Thursday its projection for 2026 interest income to reach unprecedented levels, attributed to an acceleration in loan demand combined with expanding net interest margins. The regional financial institution is capitalizing on an uptick in borrowing activity within the banking sector, influenced by recent interest rate reductions implemented by the U.S. Federal Reserve.
Alongside the increase in loans, Huntington also benefits from declining costs associated with deposits, which enhances the bank's lending profitability outlook.
For the entirety of 2026, Huntington anticipates net interest income (NII) growth ranging between 10% and 13% on a standalone basis. This metric represents the spread between the earnings from loans and the expenses incurred for deposit funding. In the previous year, the bank reported net interest income of $6.06 billion.
Adding to Huntington's expansion strategy, the bank entered into an agreement in October to acquire Cadence Bank for $7.4 billion. Following the completion of this acquisition, Huntington expects the deal to contribute an additional $1.85 billion to $1.90 billion to its full-year net interest income forecast.
Furthermore, the bank projects that average loans will increase by approximately 11% to 12% in 2026 when considering its standalone operations. Average deposits are also forecasted to grow, estimated between 8% and 9%.
Steve Steinour, Huntington’s CEO, commented on the outlook, stating, "Our focus for 2026 remains on driving strong organic growth. We entered the year with excellent momentum and our backlogs and pipeline are robust."
During the fourth quarter, the bank’s interest income rose by 14%, reaching $1.6 billion, driven primarily by wider margins and loan volume growth.
Huntington continues to pursue growth via acquisitions beyond Cadence Bank. Earlier, in July, it announced an all-stock deal valued at $1.9 billion to acquire Veritex. Steinour highlighted that these deals will accelerate expansion across Texas and the southern United States, with integration efforts progressing smoothly.
Over the past year, average total loans and leases climbed by $18.4 billion, or 14%, a growth figure that includes the impact of the Veritex acquisition.
In the quarter ending December 31, Huntington posted an adjusted profit of 37 cents per share, aligning with analysts’ consensus estimates compiled by LSEG. Despite these results, the bank's shares declined by 1.4% amid volatile premarket trading.