Huntington Bancshares Inc. lowered its prime rate from 7.00% to 6.75%, a 0.25‑percentage‑point cut that takes effect on December 11, 2025. The move is intended to make the bank’s variable‑rate products—mortgages, lines of credit and other loans—more attractive in a market where deposit costs are rising and loan demand remains strong.
The prime‑rate reduction follows a similar adjustment on October 30, 2025, when Huntington lowered its rate from 7.25% to 7.00%. The back‑to‑back cuts signal a deliberate strategy to keep the bank’s pricing competitive amid a broader economic slowdown and a Federal Reserve that has kept the federal funds rate near 5.25%–5.50%. By trimming the benchmark rate, Huntington can offer lower borrowing costs to customers while maintaining its net‑interest margin, which has remained steady at roughly 3.5% over the past two quarters.
Huntington’s Q3 2025 earnings reinforce the rationale for the rate cut. Net income rose to $629 million, or $0.41 per share, up 17% from the prior quarter and 22% from the same period a year earlier. The earnings beat analyst expectations by $0.03 per share, driven by disciplined cost management and a favorable mix of higher‑margin loan products. The bank’s Q2 2025 results—$536 million in net income and $0.34 per share—provide a baseline that highlights the growth momentum the rate cut aims to sustain.
The bank’s strategic acquisitions also support the rate‑cut narrative. Huntington’s $7.4 billion all‑stock purchase of Cadence Bank expands its footprint into Texas and the Southeast, adding $10 billion in assets and 1,200 new branches. The acquisition is expected to generate incremental fee revenue and broaden the bank’s loan portfolio, further justifying a competitive prime rate to attract new borrowers in the expanded markets.
Huntington’s asset base stands at $223 billion, with operations in 14 states and over 1,000 branches. The bank’s management has emphasized strong execution and growth in fee revenues, while the CFO highlighted acquisitions as a “springboard for future growth.” The prime‑rate cut, combined with the Cadence Bank deal, positions Huntington to capture market share in a tightening credit environment and to maintain profitability as the economy eases.
The decision to lower the prime rate is a clear signal that Huntington is proactively adjusting its pricing strategy to support loan growth and customer acquisition while navigating rising deposit costs and a slowing economy. The move is expected to keep the bank competitive and to reinforce its financial performance momentum as it continues to expand its regional presence.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.