Huntington Bancshares shares tumbled 5.55% following a profit warning that cited rising deposit costs and margin pressure, dragging down regional peers like Fifth Third Bancorp in the process.
Huntington lowered its 2027 EPS guidance to $1.75-$1.83 from above $1.90 and cut 2026 NII growth to ~35% from 39%-43% due to rising deposit costs and loan pricing pressure, triggering a 5.55% drop.
Fifth Third shares fell 4.1% as investors speculated that Huntington's margin pressure indicates similar challenges for regional bank peers.
Huntington Bancshares shares fell 5.55% after the bank lowered its 2027 EPS guidance to $1.75-$1.83 and reduced its 2026 net interest income growth forecast to 35%. The downward revision, driven by rising deposit costs and tightening loan pricing, sparked a broader selloff in regional bank stocks, including a 4.1% decline in Fifth Third Bancorp.
The bank cited rising deposit costs and increased pricing pressure on loans, which are squeezing net interest margins in a higher-for-longer interest rate environment.
The news triggered a sector-wide selloff, with Fifth Third Bancorp shares falling 4.1% as investors grew concerned that Huntington's margin challenges reflect systemic issues for regional banks.