Huntington Bancshares raises 2025 loan growth outlook to 6%-8% while advancing Texas expansion
Management Insights: Huntington Bancshares reported strong growth in loans, deposits, and fees, with a notable acquisition of Veritex expected to enhance their presence in Texas. The company raised its guidance for loan and deposit growth, reflecting confidence in operational performance.
Financial Performance: The earnings per share were $0.34, with adjusted return on tangible common equity at 17.6%. The company experienced significant year-over-year increases in tangible book value and net interest income, while also addressing economic uncertainties as potential risks to future growth.
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Huntington Bank (HBAN) Q4 Earnings Miss Expectations, Stock Declines
- Earnings Report: Huntington Bank's Q4 earnings per share fell short of market expectations, with an 11% revenue growth overshadowed by higher-than-expected expenses, leading to a stock decline that reflects market concerns about future performance.
- Expense Growth: The company anticipates a 10% to 11% increase in expenses for 2026, exceeding investor expectations, partly due to one-time integration costs associated with the Vertex deal, which may impact investor confidence.
- Market Outlook: Despite the expense pressures, Huntington Bank remains optimistic about 2026, projecting revenue growth between 11% and 14%, indicating its competitive position and growth potential in the market.
- Operating Leverage: The bank achieved nearly a 3% increase in operating margins in 2025 and expects to expand margins by 1.5% to 2% in 2026, demonstrating a strong balance between profitability and reinvestment.
Huntington Bancshares (HBAN) Reports 11% Revenue Growth in Q4 2025
- Strong Performance: Huntington Bancshares reported Q4 2025 earnings per share of $0.30, with an adjusted EPS of $0.37, reflecting a 9% year-over-year increase, which underscores the company's robust revenue and profitability, solidifying its market position.
- Loan and Deposit Growth: Average loans increased by 14.4% year-over-year, while deposits rose 5.1% quarter-over-quarter, indicating effective strategies in customer acquisition and fund management, which are expected to drive future revenue growth.
- Accelerated Strategic Partnerships: The integration with Veritex was completed in 187 days, with Cadence's systems migration projected for mid-2026, expected to yield significant cost and revenue synergies, further enhancing the company's competitive edge.
- Optimistic Outlook: Management anticipates net interest income growth of 10% to 13% in 2026, emphasizing continued investment in digital capabilities and market expansion to support long-term growth objectives.
Small Banks Thrive with PE Ratios Below 11 Amid Market Optimism
- Banking Resilience: Small and regional banks have demonstrated strong performance after enduring a 500 basis point rate shock, maintaining historical high capital ratios, indicating robust risk resilience and potential for increased profitability in the future.
- PE Ratio Advantage: While money center banks trade at forward PE ratios between 13 and 16, small and regional banks are priced below 11, growing faster, suggesting that investors can achieve higher returns by opting for smaller banks.
- Yield Attractiveness: For instance, Huntington offers a yield three times that of JP Morgan, highlighting the appeal of small banks in terms of yield distribution, which has garnered increased investor interest.
- Rapidly Growing Community Banks: Third Coast Bankshares and South Plains Financial in Texas are among the fastest-growing community banks, priced at or below 11 times forward PE ratios, showcasing their competitive edge and investment potential in the market.
TD Cowen Reaffirms Buy Rating for Huntington Bancshares Incorporated - Preferred Stock (HBANL)
TD Cowen's Recommendation: On October 20, 2025, TD Cowen maintained a Buy recommendation for Huntington Bancshares Incorporated - Preferred Stock (NasdaqGS:HBANL), with an average one-year price target of $30.00/share, indicating a potential upside of 16.86% from its closing price of $25.67/share.
Institutional Holdings and Changes: There are 30 funds reporting positions in HBANL, with a slight decrease in total shares owned by institutions. Notable changes include a 9.01% decrease in shares held by iShares Preferred and Income Securities ETF, while Global X U.S. Preferred ETF increased its holdings by 27.63%.
Raymond James Confirms Strong Buy Rating for Huntington Bancshares Incorporated - Preferred Stock (HBANL)
Analyst Recommendation: Raymond James has reiterated a Strong Buy recommendation for Huntington Bancshares Incorporated - Preferred Stock (NasdaqGS:HBANL) as of October 20, 2025, with an average one-year price target of $30.00/share, indicating a potential upside of 16.86% from its current price of $25.67/share.
Institutional Holdings: There are 30 funds reporting positions in HBANL, with a slight decrease in total shares owned by institutions over the last three months. Notable changes include a decrease in holdings by iShares Preferred and Income Securities ETF and an increase by Global X U.S. Preferred ETF.
Keefe, Bruyette & Woods Reaffirms Market Perform Rating for Huntington Bancshares Incorporated - Preferred Stock (HBANL)
Analyst Coverage: Keefe, Bruyette & Woods has maintained a "Market Perform" recommendation for Huntington Bancshares Incorporated - Preferred Stock (NasdaqGS:HBANL) as of October 20, 2025, with an average one-year price target of $30.00/share, indicating a potential upside of 16.86% from its current price of $25.67/share.
Fund Sentiment and Shareholder Activity: There are 30 funds reporting positions in HBANL, with a slight decrease in total shares owned by institutions. Notable changes include a 9.01% decrease in shares held by iShares Preferred and Income Securities ETF, while Global X U.S. Preferred ETF increased its holdings by 27.63%.
Huntington Bank (HBAN) Q4 Earnings Miss Expectations, Stock Declines
- Earnings Report: Huntington Bank's Q4 earnings per share fell short of market expectations, with an 11% revenue growth overshadowed by higher-than-expected expenses, leading to a stock decline that reflects market concerns about future performance.
- Expense Growth: The company anticipates a 10% to 11% increase in expenses for 2026, exceeding investor expectations, partly due to one-time integration costs associated with the Vertex deal, which may impact investor confidence.
- Market Outlook: Despite the expense pressures, Huntington Bank remains optimistic about 2026, projecting revenue growth between 11% and 14%, indicating its competitive position and growth potential in the market.
- Operating Leverage: The bank achieved nearly a 3% increase in operating margins in 2025 and expects to expand margins by 1.5% to 2% in 2026, demonstrating a strong balance between profitability and reinvestment.
Huntington Bancshares (HBAN) Reports 11% Revenue Growth in Q4 2025
- Strong Performance: Huntington Bancshares reported Q4 2025 earnings per share of $0.30, with an adjusted EPS of $0.37, reflecting a 9% year-over-year increase, which underscores the company's robust revenue and profitability, solidifying its market position.
- Loan and Deposit Growth: Average loans increased by 14.4% year-over-year, while deposits rose 5.1% quarter-over-quarter, indicating effective strategies in customer acquisition and fund management, which are expected to drive future revenue growth.
- Accelerated Strategic Partnerships: The integration with Veritex was completed in 187 days, with Cadence's systems migration projected for mid-2026, expected to yield significant cost and revenue synergies, further enhancing the company's competitive edge.
- Optimistic Outlook: Management anticipates net interest income growth of 10% to 13% in 2026, emphasizing continued investment in digital capabilities and market expansion to support long-term growth objectives.
Small Banks Thrive with PE Ratios Below 11 Amid Market Optimism
- Banking Resilience: Small and regional banks have demonstrated strong performance after enduring a 500 basis point rate shock, maintaining historical high capital ratios, indicating robust risk resilience and potential for increased profitability in the future.
- PE Ratio Advantage: While money center banks trade at forward PE ratios between 13 and 16, small and regional banks are priced below 11, growing faster, suggesting that investors can achieve higher returns by opting for smaller banks.
- Yield Attractiveness: For instance, Huntington offers a yield three times that of JP Morgan, highlighting the appeal of small banks in terms of yield distribution, which has garnered increased investor interest.
- Rapidly Growing Community Banks: Third Coast Bankshares and South Plains Financial in Texas are among the fastest-growing community banks, priced at or below 11 times forward PE ratios, showcasing their competitive edge and investment potential in the market.
TD Cowen Reaffirms Buy Rating for Huntington Bancshares Incorporated - Preferred Stock (HBANL)
TD Cowen's Recommendation: On October 20, 2025, TD Cowen maintained a Buy recommendation for Huntington Bancshares Incorporated - Preferred Stock (NasdaqGS:HBANL), with an average one-year price target of $30.00/share, indicating a potential upside of 16.86% from its closing price of $25.67/share.
Institutional Holdings and Changes: There are 30 funds reporting positions in HBANL, with a slight decrease in total shares owned by institutions. Notable changes include a 9.01% decrease in shares held by iShares Preferred and Income Securities ETF, while Global X U.S. Preferred ETF increased its holdings by 27.63%.
Raymond James Confirms Strong Buy Rating for Huntington Bancshares Incorporated - Preferred Stock (HBANL)
Analyst Recommendation: Raymond James has reiterated a Strong Buy recommendation for Huntington Bancshares Incorporated - Preferred Stock (NasdaqGS:HBANL) as of October 20, 2025, with an average one-year price target of $30.00/share, indicating a potential upside of 16.86% from its current price of $25.67/share.
Institutional Holdings: There are 30 funds reporting positions in HBANL, with a slight decrease in total shares owned by institutions over the last three months. Notable changes include a decrease in holdings by iShares Preferred and Income Securities ETF and an increase by Global X U.S. Preferred ETF.
Keefe, Bruyette & Woods Reaffirms Market Perform Rating for Huntington Bancshares Incorporated - Preferred Stock (HBANL)
Analyst Coverage: Keefe, Bruyette & Woods has maintained a "Market Perform" recommendation for Huntington Bancshares Incorporated - Preferred Stock (NasdaqGS:HBANL) as of October 20, 2025, with an average one-year price target of $30.00/share, indicating a potential upside of 16.86% from its current price of $25.67/share.
Fund Sentiment and Shareholder Activity: There are 30 funds reporting positions in HBANL, with a slight decrease in total shares owned by institutions. Notable changes include a 9.01% decrease in shares held by iShares Preferred and Income Securities ETF, while Global X U.S. Preferred ETF increased its holdings by 27.63%.
