Huntington Bank’s 21% Growth Shows Main Street’s up for Borrowing

Core Insights - Regional banks are showing strong performance, with Huntington Bancshares reporting a 12% increase in average commercial loans from the prior quarter and a 21% increase year-over-year in Q4 2025 [2] - Huntington expects net interest income to rise between 10% and 13% to a record high in 2026, indicating positive economic sentiment among businesses [2] - Analysts suggest that regional bank stocks present a buying opportunity due to a rebound in loan growth, with firms like Citizens and UBS advocating for investment in this sector [5] Company Performance - Huntington Bancshares is focused on driving organic growth, entering 2026 with strong momentum and robust backlogs [3] - Fifth Third Bank reported the highest quarterly commercial loan production in over three years, attributed to investments in middle market sales and corporate banking [7] - KeyCorp's net interest income grew by 15% year-over-year in the fourth quarter, reflecting strong performance in the regional banking sector [7] Market Outlook - Regional banks are more sensitive to economic conditions and interest rates, providing insights into the comfort level of small- and medium-sized businesses regarding debt for expansion [3] - Morningstar forecasts a 3-4% growth in regional banks' net interest income, with potential for faster growth driven by commercial real estate and middle-market M&A activity [4]