Huntington’s net charge-offs improve 59 basis points

Huntington Bank’s net charge-offs for equipment lease financings improved in the fourth quarter of 2025 as the lender recovered lease financings amid an overall improvement in its commercial credit performance. 

Columbus, Ohio-based Huntington Bank’s Q4 lease financing net charge-offs landed at 0.53% net recoveries, compared with net charge-offs of 0.04% in the third quarter of 2025 and 0.06% in Q4 2024, according to the bank’s earnings supplement released today. The bank’s allowance for credit losses on lease financing, as a percentage of total loans, finished at 1.6%, up 40 basis points (bps) quarter over quarter and year over year, according to an Equipment Finance News’ analysis of the company’s earnings supplement. 

The bank reported its lease financing portfolio finished at $5.7 billion in Q4, up 3.8% QoQ and 5% YoY, according to the bank’s earnings supplement. The lender’s equipment lease financing portfolio represented 4% of its total portfolio for a fifth consecutive quarter. 

Huntington’s commercial and institutional loan outstandings landed at $69 billion in Q4, up 10.3% QoQ and 22.2% YoY, according to the earnings supplement. Its commercial and institutional portfolio represented 46% of its total portfolio, up 3 percentage points QoQ and 1 percentage point YoY.  

Meanwhile, credit performance across the company’s commercial loans improved annually in Q4. According to the bank’s presentation released today:    

• 30-day delinquencies finished at 0.21%, down 7 bps YoY but up 2 bps QoQ; and 

• 90-plus day delinquencies landed at 0.01%, down 1 bps YoY and flat QoQ. 

Negative equipment impact 

Despite the positives, equipment leasing had a $200 million negative impact on the bank’s $3.2 billion in organic loan growth in Q4, Zach Wasserman, senior executive vice president and chief financial officer, said during the company’s earnings call.  

The bank is in the early stages of major growth initiatives, such as new commercial specialty verticals and organic expansion into geographies like the Carolinas and Texas, that will remain key areas of continued investment, Wasserman added. 

“The expectation in 2026 is to open a new branch there almost every two weeks, and so, of course, that’ll be an area that we’re investing in,” he said. “One of the biggest areas that we see opportunity to really capture revenue synergies from the combined franchise is in digital acquisition and customer acquisition across the footprint.” 

Shares of Huntington [NASDAQ: HBAN] were $17.64 at market close today, down $1.13 or 6.02% from market open. Huntington has a market cap of $29.43 billion.   

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