What happened

Shares of Huntington Bancshares (HBAN 1.18%) gained nearly 9.5% today after the large regional bank reported third-quarter earnings results.

So what

Huntington reported earnings per common share of $0.39 on total revenue of $1.91 billion. Both figures beat analysts' estimates for the quarter.

Net interest income (NII), the profit banks make on loans and securities after covering the cost to fund those assets, rose 11% from the previous quarter as the bank benefited from the higher interest rate environment.

Furthermore, management raised its guidance for NII for the fourth quarter and now expects NII to increase in the high-20s-to-low-30s percentage range year over year, thanks to the rate environment and projected high-single-digit percentage loan growth as well.

Net charge-offs, or debt unlikely to be collected and a good indicator of loan losses, came in at $44 million for the quarter, up from just $8 million in the previous quarter. The net charge-off rate for Q3 as a percentage of the loan book was just 0.15%, and management does not expect the net charge-off rate for the full year to exceed this level. Nonperforming assets declined from the prior quarter.

Now what

Huntington Bancshares made a big acquisition of TCF Financial Corporation in 2020 and now it seems like the combined bank's operations are starting to run more smoothly. The bank saw higher returns in the quarter, raised its NII guidance, and has a clean bill of health when it comes to credit.