Huntington Bancshares cuts CRE exposure, sees NII at low-end guidance, approves $3B buyback
Huntington Bancshares will cut commercial real estate exposure and sees Q1 2026 net interest income at low-end guidance due to weaker loan growth and narrower margins. Veritex and Cadence integrations are on track for synergies while a $3B buyback authorization and 7.7% RWA reduction (80bp CET1) bolster capital returns.
1. Commercial Real Estate Exposure Reduction
Huntington Bancshares identified construction lending within its commercial real estate portfolio as a key risk and plans to reduce that exposure over time, matching loan originations with core deposit growth targets to manage risk in a softer economic environment.
2. Q1 Net Interest Income Guidance
The bank forecasts net interest income at the low end of its guided range for Q1 2026, attributing the pressure to slower loan growth and modestly narrower net interest margins driven by slightly higher deposit costs and lower asset yields.
3. Acquisition Integration and Capital Return
Integration of Veritex and Cadence is progressing as planned, unlocking cost and revenue synergies, while a new $3B evergreen share buyback authorization complements the $550M plan for this year and leverages a 7.7% RWA reduction to secure an 80bp CET1 capital benefit.