Huntington's Q2 2026 profit rose 36% to $727M and revenue 46% after the Cadence and Veritex acquisitions, but diluted EPS slipped to $0.33 from $0.34 as the share count rose 38% and deal costs reached $152M.
Revenue
$2.8B
+46.4% YoY
Net income
$727M
+35.6% YoY
Diluted EPS
$0.33
-2.9% YoY
Overview
Huntington Bancshares, the Columbus, Ohio-based regional bank, earned $727 million in the second quarter of 2026 (three months to June 30), up 36% from $536 million a year earlier. Its revenue grew 46%. Earnings per share still fell from $0.34 to $0.33.
Two acquisitions explain both numbers. Huntington bought Veritex Holdings (Dallas; closed October 20, 2025, paid in stock worth $1.7 billion) and Cadence Bank (Houston and Tupelo, Mississippi; closed February 1, 2026, paid in stock worth $8.3 billion). As the 10-Q notes, earlier periods show only legacy Huntington, while later periods include the acquired banks. Most of the year-over-year growth in loans, deposits, revenue and costs is therefore bought growth, not like-for-like growth. Huntington paid for both deals in shares: it issued 107 million shares for Veritex and 462 million for Cadence. Average diluted shares rose 38%, to 2,048 million from 1,481 million. That growth in the share count, together with $152 million of pre-tax acquisition-related expenses this quarter, absorbed all of the growth in profit per share.
Huntington completed the Cadence systems conversion in mid-June and called it "the last major milestone in the integration."
Key metrics
In this report, "revenue" means net interest income plus noninterest income. Net interest income is what the bank earns on loans and securities minus what it pays on deposits and borrowings. Noninterest income is fees and other revenue. This is the usual way to measure a bank's total revenue. The bank's own "total revenue, FTE" figure ($2,857 million) is slightly higher because it adds a tax-equivalence adjustment.
Metric
Q2 2026
Q2 2025
YoY Change
Revenue (NII + noninterest income)
$2,837M
$1,938M
+46.4%
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bp = basis point, one-hundredth of a percentage point. Figures come from the Q2 2026 10-Q and the July 23, 2026 earnings release. The CET1 ratio for June 30, 2026 is marked "estimated" in the release.
Takeaway: Taken together, the two acquisitions made Huntington about 40% bigger, and they raised the share count by about the same amount. Profit rose 36% while EPS fell a cent. On a per-share basis the deals have not yet added to earnings. Excluding deal costs, adjusted EPS (the bank's non-GAAP measure) was $0.39, compared with about $0.38 a year earlier after the same adjustment. The two signs to watch are cost savings from the integration and the rising number of loans that have stopped paying.
Net interest income: the balance sheet grew, and the margin widened
Net interest income rose $585 million (40%) to $2,052 million. The filing gives two reasons:
Size. Average earning assets rose $67.5 billion, or 35%. The 10-Q attributes this to "a combination of the Cadence and Veritex acquisitions and organic growth." At closing, Cadence added $36.9 billion of loans and Veritex added $9.3 billion.
Margin. The net interest margin (NIM) is interest earned on assets minus interest paid on funding, expressed as a percentage of earning assets. It is the bank's core spread. NIM rose 10 bp to 3.21%, which the filing says was "driven by lower funding costs, partially offset by lower yields on interest earning assets." The rate paid on interest-bearing deposits fell to 2.29% from 2.46%. The yield on loans slipped to 5.84% from 5.91%, and the yield on securities fell to 3.47% from 3.95%.
Compared with the first quarter, the margin fell 3 bp (from 3.24%) because of "a modest increase in overall funding costs." The rate on interest-bearing deposits went up 8 bp quarter over quarter. The 10-Q also says Huntington let some of the higher-cost deposits it acquired from Cadence and Veritex run off "to optimize our funding mix."
Fees grew faster than the acquisitions alone would explain
Noninterest income rose 67% to $785 million. Part of that gap comes from a comparison effect: Q2 2025 included a $58 million loss on securities sales, while Q2 2026 had a $2 million gain. Excluding securities gains and losses from both quarters, noninterest income rose about 48% ($783 million vs. $529 million). By line, according to the filing:
Fee line
Q2 2026
Q2 2025
Change
Filing's explanation
Payments and cash management
$204M
$165M
+24%
Higher cash management and interchange revenue
Capital markets and advisory
$140M
$84M
+67%
Higher legacy advisory fees, three business units acquired from Janney, and higher syndication fees
Wealth and asset management
$134M
$102M
+31%
Higher investment management and trust income
Customer deposit and loan fees
$128M
$95M
+35%
More commitment fees and personal service charges
Mortgage banking
$53M
$28M
+89%
Higher origination and secondary-marketing income
Other noninterest income
$74M
$26M
+185%
Credit risk transfer transactions, investment valuation gains, bank-owned life insurance
Costs: deal expenses and a bigger company
Noninterest expense rose $612 million (51%) to $1,809 million. $152 million of that was acquisition-related, mostly outside data processing ($74 million) and personnel ($38 million). Excluding those costs, expense was $1.7 billion, up 38%. The largest drivers were personnel (+$250 million), technology and data (+$70 million), and amortization of the core-deposit intangible assets created by the deals (+$43 million). Average full-time-equivalent staff rose 30% to 26,407.
The efficiency ratio is noninterest expense as a share of revenue, so lower is better. It worsened to 61.5% from 59.0%, but it improved from 67.2% in Q1 2026, when $263 million of deal costs were booked ($415 million for the first half, less Q2's $152 million). The effective tax rate also rose to 18.4% from 15.0%. The filing attributes this mainly to higher pre-tax income and to a prior-year benefit from remeasuring deferred tax assets after state tax-law changes.
Credit quality: charge-offs still low, problem loans rising
The provision for credit losses is money set aside to cover expected future loan losses. It rose to $132 million from $103 million, which the filing attributes to loan growth and higher charge-offs. Net charge-offs are loans written off as uncollectable, minus recoveries. They were $119 million, or an annualized 0.25% of average loans, up from 0.20%. Commercial charge-offs were 0.22% and consumer charge-offs were 0.30%. The six-month total includes $23 million of Cadence loans that Huntington wrote up and then immediately charged off, as purchase accounting requires. That is an accounting entry, not a new loss.
Nonperforming assets are loans that have stopped accruing interest, plus foreclosed property. This measure is moving in the wrong direction. It stood at $1.6 billion, or 0.85% of loans, up from 0.63% a year earlier and 0.72% in Q1, a rise of 13 bp in one quarter. Of the increase since December, $295 million came from NPAs assumed with Cadence. The filing says the rest came from "additional increases in commercial and industrial, commercial real estate, and residential mortgage" nonaccrual loans. The reserve for losses was $3.4 billion, or 1.78% of loans, unchanged from Q1 and down from 1.86% a year earlier.
Capital
The CET1 ratio is the bank's highest-quality capital as a share of its risk-weighted assets. It is the main measure regulators use of a bank's ability to absorb losses. It fell to an estimated 10.0% from 10.2% in Q1 and 10.5% a year ago. The filing attributes the decline to higher risk-weighted assets, the Cadence acquisition and share buybacks. Huntington repurchased $159 million of stock in the quarter and $309 million year-to-date. Tangible book value per share, which is equity minus goodwill and intangibles, divided by shares, rose 6% year over year to $9.65.
Outlook
The earnings release gives no numerical guidance. CEO Steve Steinour said the company has "strong line of sight to the remaining cost synergies" and that "by the fourth quarter, the full earnings power of these partnerships will be clearly evident." The 10-Q's reserve model uses a baseline forecast in which unemployment peaks at 4.6% in Q4 2026 and inflation stays near 3% through year-end. Since the quarter ended, the company has named Brantley Standridge President, effective September 8, 2026, with Steinour remaining Chairman and CEO.
Our view: the second half should show whether the deals add to earnings per share. Q3 will be the first quarter after the Cadence systems conversion. If quarterly deal costs fall well below Q2's $152 million while revenue holds, EPS should rise above the $0.34 of a year ago. We will watch two things: whether the recent 3 bp dip in the margin continues as funding costs rise, and whether nonperforming loans level off after the jump from 0.72% to 0.85% this quarter.