Huntington Bancshares Q1 2026: Cadence-Veritex Synergies Lift Growth, EPS Dips on GAAP, Rides on Adjusted Measure

Ticker HBAN pushed into the first quarter of 2026 with a blended earnings narrative: GAAP EPS of $0.25, down from the prior quarter, and adjusted EPS of $0.37, flat to the prior quarter and higher than a year ago. The results ride the back of two big-but-recent arrivals—Veritex Holdings and Cadence Bank—which Huntington completed mid-January and February 1, 2026, respectively. Management framed the period as a strong start to 2026, driven by a lift in net interest income and a healthier noninterest income line, all while pursuing the cost- and revenue-scale benefits of post-merger integration.

Key highlights at a glance

EPS (GAAP) for the quarter: $0.25; adjusted EPS (non-GAAP): $0.37, unchanged from the prior quarter and up 0.03 from the year-ago quarter.
Notable Items are detailed in Table 2; investors will watch whether the earnings surprise sits within or above EPS consensus expectations as analysts model the ongoing integration impact.
Net interest income rose by $299 million, or 19% quarter-over-quarter, while noninterest income increased by $188 million, or 38% year-over-year, underscoring the revenue momentum from higher loan volumes and fee-based activities.
Balance sheet momentum: average total loans and leases increased to $174.2 billion; average total deposits rose 18% (about $31.5 billion) from the prior quarter and 27% year over year, reflecting the acquisitions and inflows in a still-competitive rate environment.
Credit quality: net charge-offs of 0.26% of average total loans and leases, modestly higher than the prior quarter and flat versus the year-ago quarter.
Strategic cadence: the cadence of acquisitions is in motion—Cadence Bank closed in February 2026; Veritex conversion completed in mid-January—with integration expected to complete in the second quarter of 2026, signaling potential future efficiency gains and revenue opportunities.

What this means in context

Huntington’s results sit at the intersection of scale effects and integration risk. The GAAP EPS drag versus the prior quarter is a reminder that merger-related costs and mix shifts can blunt headline numbers even as the business grows. The stronger adjusted EPS signals that, on a pro forma basis, the core franchise is smoothing through the transition, supported by higher net interest income and a richer noninterest income mix.

The conversion of Veritex and the Cadence Bank deal are not merely legal or accounting milestones; they are the engines for a broader narrative: a larger balance sheet with more diversified funding and a broader customer footprint. With loans and leases expanding and deposits rising, Huntington is leaning into scale to support lending activity and fee-based revenue. Still, the path forward hinges on the speed and cost of integration, the tempo of loan growth in a competitive environment, and the regime of credit quality as the mix shifts post-merger.

Takeaways for HBAN and sector peers

For Huntington, the quarter showcases the potential: bigger scale, higher net interest income, and a boosted deposit base that can cushion funding costs. If the Cadence-Veritex integrations unlock cross-sell opportunities and cost synergies, the company could tighten the gap between adjusted EPS and the headline GAAP figure, narrowing the delta that often vexes investors during merger cycles.

Sector peers watching Huntington’s cadence may see a reminder that acquisitions, when executed with credible integration plans, can re-rate earnings potential even in a rate environment that isn’t always friendly to net interest margins. The challenge remains: to turn the incremental loan growth and fee income into durable profitability while preserving credit quality. A few quarters of steady adjustments could shift investor focus from “how much did we pay for the deal?” to “how effectively are we extracting value from the deal?”

In the shorter horizon, markets will compare the quarterly results against EPS consensus and a revenue forecast narrative built on net interest income trends and the pace of noninterest income expansion. If Huntington sustains its momentum, it may set a template for peers pursuing aggressive M&A strategies to integrate quickly without sacrificing credit discipline.

What to watch next

The pace and costs of integrating Cadence and Veritex—sensitivities to funding mix and operating efficiency.
Net interest margin trajectory as the balance sheet evolves and deposit growth stabilizes.
Credit quality trajectory beyond the near term, especially as loan growth broadens across new platforms.
Updated guidance or revenue forecasts from Huntington that could sharpen the earnings surprise calculus for the remainder of 2026.

Bottom line

Huntington Bancshares’ Q1 2026 reflects a bank in transition, trading the immediacy of GAAP results for the longer arc of scale-driven profitability. The combination of a rising loan book, growing deposits, and stronger noninterest income, buttressed by two major acquisitions finally entering the integration phase, positions HBAN to test whether adjusted EPS can outpace the raw GAAP figure as the full benefits of the deals unfold. In the banking crowd, that’s the kind of sequence that earns a second glance—one that might eventually yield a sustainable, if not flashy, earnings trajectory across HBAN’s sector peers.