Huntington Bancshares reduced its prime rate from 7.25% to 7.00%, effective October 30, 2025, making the bank’s variable‑rate loans and credit products more attractive to borrowers.
The cut is expected to compress the bank’s net interest margin, which stood at 3.13% in Q3 2025, up from 3.11% in Q2 2025 and 3.03% in Q4 2024. However, the bank’s loan book has expanded, with average total loans and leases reaching $135.9 billion in Q3 2025, a 9% year‑over‑year increase, compared with $128.2 billion in Q4 2024 and $124.5 billion in Q3 2024.
Huntington reported net income of $629 million in Q3 2025, up 22% from the same quarter a year earlier, and $530 million in Q4 2024, up $287 million from Q4 2023. The company’s earnings growth reflects both higher loan volumes and disciplined cost management.
Segment performance shows the Consumer & Regional Banking unit generated $1.5 billion in net income in 2024, a 15% rise, while the Commercial Banking unit reported $1.2 billion, a 2% decline versus 2023.
CEO Steve Steinour said the bank expects momentum from core businesses and strategic investments to carry through 2025 and beyond, citing robust loan demand and a focus on fee‑based revenue streams.
The rate reduction follows a broader industry trend of rate adjustments linked to Federal Reserve policy. Huntington’s recent acquisition of Veritex Holdings, scheduled for October 20, 2025, expands its presence in Texas and supports the bank’s growth strategy.
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