Huntington Opens Branches and Powers Digital Growth in 2026

Huntington Bancshares Inc. is expanding its physical and digital banking presence as part of its strategy for 2026. The bank plans to open one branch every two weeks in North Carolina and South Carolina, a key part of its Southeast expansion. This follows five new branches in these states in 2025.

The bank is also seeing more customers open accounts digitally than through branches. About 80% of new digital customers live within five miles of a Huntington branch, helping the bank deepen local relationships. This hybrid approach supports growth in higher-value services like wealth management and capital markets.

Huntington reported strong fourth-quarter 2025 results, with adjusted EPS of $0.37, up 9% year-over-year. The bank expects 2026 to be a major year for growth in net interest income, loan volume, and fee revenue.

Why the Move Happened

Huntington's expansion strategy combines traditional branch banking with digital innovation. CFO Zachary Wasserman said the approach is unusual for a bank of its size. The bank sees physical and digital channels as complementary, with proximity to branches helping to convert digital customers into long-term clients.

New branches are also seen as talent opportunities. The Southeast build-out has been supported by pre-launch marketing, with many branches surpassing deposit targets before opening. This reflects a strategic focus on both customer acquisition and workforce development.

The bank is also integrating recent acquisitions, including Veritex and Cadence. These deals are expected to boost Huntington's net interest income and fee revenue in 2026.

How Markets Responded

Despite beating earnings estimates, Huntington's stock declined 3.04% in pre-market trading following its Q4 2025 report. The drop may reflect concerns about the slight revenue miss and the sustainability of growth in an uncertain economic environment. Some analysts remain optimistic about Huntington's long-term potential, however. Goldman Sachs reiterated its buy rating and $21 price target.

Investor sentiment is influenced by broader economic uncertainties, including potential changes in interest rates. Huntington's net interest margin of 3.15% and strong credit quality offer a degree of stability.

What Analysts Are Watching

Analysts are focused on how Huntington balances branch expansion with cost discipline. The bank expects to grow net interest income by 10–13% in 2026, with core expenses growing at mid-single digits.

Operating leverage and fee revenue growth are also under scrutiny. Huntington reported 290 basis points of positive operating leverage in 2025, driven by strong loan and deposit growth.

The bank's integration of Veritex and Cadence will also be key. Management expects cost synergies from these deals to reach full run rate by the end of 2026.

Investors are also watching Huntington's digital transformation. The bank is investing in AI and other technologies to enhance customer engagement and streamline operations. These investments are part of a broader effort to maintain competitiveness in a rapidly changing financial services landscape.

Huntington's strategic focus on both physical and digital growth positions it to navigate industry challenges and capitalize on new opportunities. The bank's ability to sustain its current momentum will depend on its execution in 2026 and the broader economic environment.