Huntington Bancshares (NASDAQ:HBAN) posted a 17% sequential decline in fourth-quarter net income, as the cost of its aggressive expansion into the Southern U.S. weighed on its bottom line.
The Columbus, Ohio-based lender reported net income of $519 million, or $0.30 per share, down from the previous quarter and $0.04 lower than a year ago.
The results included $130 million in pre-tax "notable items," primarily tied to the integration of Veritex Holdings and preparation for the upcoming Cadence Bank merger.
On an adjusted basis, excluding these one-time costs, earnings per share reached $0.37, beating the $0.33 analyst consensus.
Despite the acquisition drag, Huntington’s core engine showed significant momentum.
Net interest income (NII) climbed 6% from the prior quarter and 14% year-over-year to $1.5 billion, fueled by a 14% annual jump in average total loans, which reached $146.6 billion.
Commercial lending was particularly strong, rising 12% sequentially.
The bank also confirmed that it completed the integration of Dallas-based Veritex on Jan. 19, 2026.
Attention now turns to the Feb. 1, 2026, anticipated closing of its $7.4 billion acquisition of Cadence Bank.
The twin deals are expected to make Huntington a dominant player in high-growth markets like Texas, Georgia, and Florida.