Huntington Bancshares Incorporated (HBAN), the Columbus-based regional bank, reported that average loan growth reversed in the third quarter while average deposit growth slowed from the second quarter, when the Cadence systems conversion was completed. Average total loans and leases declined $806 million, or 0.4%, to $188.4 billion, after a $15.0 billion, or 9%, sequential increase in the prior quarter.

Average commercial real estate loans fell $854 million, or 4%, to $23.1 billion, while commercial and industrial loans rose $553 million, or 1%, to $90.9 billion. Average consumer loans decreased $503 million, or 1%, to $68.7 billion, led by $332 million lower residential mortgage and $311 million lower automobile balances.

Average total deposits increased $413 million, or 0.2%, to $223.8 billion, after an $18.8 billion, or 9%, sequential jump in the second quarter. Time deposits fell $3.0 billion, or 11%, to $23.8 billion. Average interest-bearing deposits rose $267 million to $183.7 billion and noninterest-bearing demand deposits rose $146 million to $40.2 billion. The average cost of total deposits increased 2 basis points to 1.90%.

Fully-taxable equivalent net interest income rose $18 million, or 1%, to $2.09 billion, and the net interest margin expanded 4 basis points to 3.25%. The company said the NIM increase reflected higher earning-asset yields, primarily from reinvestment into higher-yielding investment securities, and a decrease in average total borrowings, partially offset by higher deposit costs. The yield on total investment and other securities increased to 3.59% from 3.47%. Average interest-bearing liabilities decreased $3.3 billion, or 2%, primarily due to a $3.6 billion, or 16%, decrease in average total borrowings.

Noninterest income decreased $63 million, or 8%, to $722 million, reversing the $103 million, or 15%, sequential increase in the second quarter. Capital markets and advisory fees fell $18 million, or 13%, to $122 million, which the company attributed primarily to lower underwriting and advisory fees. Other noninterest income declined $35 million, or 28%, to $89 million, on unfavorable valuation changes for strategic and other investments and a decrease in leasing revenue. Wealth and asset management revenue fell $3 million, or 2%, to $131 million.

Noninterest expense excluding acquisition-related items was essentially flat at $1.66 billion, down $2 million from the prior quarter. Personnel costs excluding notable items fell $15 million, or 2%, to $957 million. Acquisition-related expenses declined to $117 million from $152 million, reducing the after-tax EPS drag to $0.05 from $0.06.

Diluted earnings were $0.33 a share, unchanged from the second quarter. Adjusted EPS, excluding notable items, was $0.38. Return on average tangible common equity was 14.6%, or 16.6% adjusted.

Credit costs rose. Net charge-offs increased to $146 million, or 0.31% of average loans, from $119 million, or 0.25%, in the second quarter. The provision for credit losses was $123 million. Nonperforming assets increased $110 million to $1.72 billion, lifting the NPA ratio to 0.90% from 0.85%, driven by commercial and industrial, commercial real estate, and residential mortgage nonaccrual loans. The allowance for credit losses was $3.36 billion, or 1.75% of total loans and leases.

The preliminary CET1 ratio was 10.1% at September 30, 2026, versus 10.0% at June 30. Adjusted CET1 was 8.9% and the TCE ratio 6.9%. Tangible book value per common share declined $0.18, or 2%, to $9.47, largely from market interest rates unfavorably impacting AOCI. Huntington repurchased $100 million of common shares in the third quarter, bringing year-to-date buybacks to $409 million, or about 25 million shares.

Chairman and chief executive officer Steve Steinour said the bank is seeing increasing benefits from its partnerships with Veritex and Cadence and is achieving targeted cost and revenue synergies, and that results reflect a disciplined growth strategy in line with an aggregate moderate-to-low risk profile.