Research · Sep 3, 2026
[HBAN] Huntington Bancshares Thesis 2026: TCF Integration Tests Midwest Deposit Franchise Through Rate Cycle
Huntington Bancshares Incorporated (NASDAQ: HBAN) FY2025 revenue ~$7.4-7.7B (+5-8%) with EPS ~$1.30-1.50 reflecting continued post-Fed 2024 rate cycle net interest margin recovery + selected TCF integration completion (selected ~$490M+ annualized cost synergies achieved ~110% of original $440M target) + selected Midwest deposit franchise resilience + selected ~50-year dividend continuity + selected operational excellence under CEO Steve Steinour (~16-year tenure since January 2009 — selected one of longest-tenured US bank CEOs). Leading US Midwest regional bank holding company providing commercial + consumer banking, vehicle finance, capital markets, treasury management, and selected wealth advisory services. Founded 1866 in Columbus Ohio as Huntington National Bank by P.W. Huntington (~159-year heritage; selected unique among US regional banks for continuous independence vs many regional banks acquired by larger institutions). Headquartered in Columbus Ohio; ~20,000+ employees globally with ~$200B+ assets. Operations: ~1,000+ branches across 11 states with primary concentration in Midwest (Ohio + Michigan + Pennsylvania + Indiana + Illinois ~70% of branches) and selected Eastern + Northern markets (Minnesota + Wisconsin via TCF + selected). Major transformative acquisitions: 2007 Sky Financial $3.4B (Ohio + Pennsylvania expansion) + June 2021 TCF Financial $22B all-stock acquisition (Detroit + Minneapolis market expansion adding ~$50B+ assets + ~700 branches; ~$7.7B premium; ~$440M cost synergy target achieved ~$490M+ ~110% on accelerated branch consolidation + technology integration + back-office consolidation). FY2025 revenue mix: net interest income ~$5.3B (~70% — selected from $180-185B average earning assets at ~3.05-3.20% NIM) + non-interest income ~$2.2B (~30% — selected fee income from card + treasury management + capital markets + wealth management + selected mortgage banking + selected vehicle finance origination fees). Net interest margin: FY2025 NIM ~3.05-3.20% (post-Fed 2024 rate cycle deposit cost normalization following Fed cut rates 100bp 2024 driving deposit cost reduction ~75-100bp); selected loan portfolio repricing at higher rates + selected investment portfolio repositioning + selected funding mix optimization (non-interest-bearing deposits ~30% of total — among highest in regional banking); FY2026 expected NIM toward 3.15-3.30%. CEO Steve Steinour since January 2009 (~16-year tenure; selected one of longest-tenured US bank CEOs; ex-Citizens Financial Group Chairman + CEO 2005-2008 + ex-various banking ~30+ year career; selected led ~$60B → ~$200B asset growth + selected TCF acquisition execution + selected ~10x stock appreciation since 2009 GFC trough). CFO Zach Wasserman since 2020. Capital return: ~50+ consecutive year continuous dividend track record (~$0.62-0.66/share annual dividend FY2025; selected ~5-7% annual increases; selected dividend yield ~3.5-4.0%); $1-2B buyback program FY2025 (selected post-2024 capital return acceleration on selected CCAR results + selected CET1 capital surplus); investment-grade A3/BBB+ credit ratings; CET1 capital ratio ~10.0-10.5% (well above ~9% Federal Reserve minimum). FY2026 thesis: NIM expansion + TCF revenue synergies + ~51-year dividend track + capital return acceleration. Risks: NIM compression from severe deposit competition, commercial real estate credit deterioration (~10-12% loan portfolio CRE), regional banking sector contagion, Fed rate cut acceleration.