Key Highlights

• Huntington's average loans rose 42% year on year, largely through its Cadence Bank and Veritex acquisitions, while Regions grew 2.8% organically.

• Huntington's net interest Margin widened to 3.21% from 3.11%, while Regions posted a steadier 3.66% margin, roughly flat year on year.

• Regions is hiring about 170 additional bankers and retraining 600 retail staff to focus on local relationship lending across eight priority markets.

Local lending trends matter for Huntington Bancshares (NASDAQ:HBAN) and Regions Financial (NYSE:RF) because both earn most of their Revenue by lending to businesses and households in particular metropolitan areas, so Credit Demand in those communities drives net interest income. In the quarter to June 30, 2026, they took contrasting routes. Huntington's average loans rose 42% year on year, largely through acquisitions in Texas and the South, while Regions grew 2.8% organically across its Southern footprint. Both are S&P 500 constituents and GICS regional banks.

How Local Loans Become Revenue

Net interest income is the difference between interest earned on loans and securities and interest paid on deposits and borrowings. For a regional bank, the Loan book is the main earning asset, so growth in local commercial and consumer lending feeds straight into net interest income if it can be funded at reasonable cost.

Local relationships also matter beyond interest. A company that borrows from a bank often keeps operating accounts and treasury-management services there, adding low-cost deposits and fee income. The loan-to-deposit ratio, loans divided by deposits, shows how fully a bank is using its local deposit base to fund lending.

Huntington (NASDAQ:HBAN): Acquisitions Widen the Map

Huntington, based in Columbus, Ohio, has changed shape within a year. It completed its purchase of Veritex on October 20, 2025, and its Merger with Cadence Bank was announced as complete on February 2, 2026. The enlarged group had about $279 billion in Assets and nearly 1,400 locations across 21 states, and ranked eighth in Texas and first in Mississippi by deposit market share.

The second-quarter release, published July 23, 2026, reflects that expansion. Average loans and leases rose to $189.3 billion from $133.2 billion a year earlier. Average commercial loans grew $44.4 billion, or 59%, led by commercial and industrial lending, which rose $31.0 billion. Residential mortgages rose $9.1 billion.

The acquisitions brought local funding as well as loans. Average total deposits rose $60.0 billion, or 37%, to $223.4 billion, and noninterest-bearing demand deposits reached $40.0 billion, also up 37%. Fully taxable-equivalent net interest income climbed 40% to $2.07 billion, and the net interest margin widened to 3.21% from 3.11%, mainly because of lower funding costs. Chief executive Steve Steinour described growth in the legacy Business as outstanding.

Per-share results tell a more cautious story. Earnings Per Share was $0.33, against $0.34 a year earlier, as all-stock deals increased the share count.

Regions (NYSE:RF): Organic Growth Across the South

Regions, headquartered in Birmingham, Alabama, has not made a comparable acquisition, so its figures are closer to a pure read of local demand. Its second-quarter release, published July 17, 2026, showed average loans of $98.7 billion, up 2.4% on the quarter and 2.8% on a year earlier. Diluted Earnings per Share rose to $0.64 from $0.59.

The bank attributed growth to broad-based commercial and industrial lending in power and utilities, manufacturing, government and public sector, and retail trade, plus multifamily bridge financing. Average deposits were broadly flat at $130.7 billion: consumer balances rose 1.3%, while corporate and Wealth balances fell.

That deposit strength shows in funding costs. Regions put interest-bearing deposit costs at 1.69%, and noninterest-bearing deposits were about 30% of the average total. Net interest margin was 3.66%, against 3.65% a year earlier. Management expects 2026 average loans and deposits to grow by low single digits, with priority markets including Tampa, Orlando, Houston, Dallas/Fort Worth, Nashville and Atlanta, projecting faster population growth than nationally. The bank is also hiring about 170 additional bankers and retraining around 600 retail bankers to serve small-business and mass-affluent clients.

Comparing the Loan Books

On these averages, Huntington lends out about 85% of its deposits and Regions about 76%. Regions therefore has more room to grow loans from existing local funding, while Huntington's opportunity lies in cross-selling its products to newly acquired Texas and Southern clients.

Risks to the Local-Lending View

Huntington's headline growth is mostly acquired, and the company does not separately disclose organic loan growth in the release, so underlying local momentum is hard to measure. Integration, deposit competition in new markets and share dilution could all limit per-share gains.

Regions' growth is modest, and its net interest margin slipped one basis point on the quarter as loan turnover repriced lower. Both banks are concentrated in the South, Midwest and Texas, so a regional slowdown would hit loan demand and credit quality together.

Local Lending Signals Ahead

Whether Huntington's fourth-quarter results show the full earnings power of its recent partnerships, and any disclosure of organic loan growth, will be a key signal. Deposit costs at Huntington were flagged on its call as the main net interest income swing factor. For Regions, loan growth against its low-single-digit 2026 expectation and trends in its priority markets deserve attention, alongside net charge-off ratios at both banks.