Huntington to Buy Cadence Bank for $7.4B, Expands South
In a bold move signaling the resurgence of consolidation among U.S. regional banks, Huntington Bancshares Inc.
(NASDAQ: HBAN) announced on Monday it has agreed to acquire Cadence Bank in an all-stock transaction valued at approximately $7.4 billion.
The deal, which values Cadence at $39.77 per share, represents a 12% premium over its recent closing price and positions the combined entity as a top-10 U.S. bank by assets, with a sprawling network spanning 21 states from the Midwest to the Deep South.
Deal Details and Structure
Under the terms of the definitive agreement, Huntington will issue 2.475 shares of its common stock for each outstanding share of Cadence common stock. Based on Huntington's closing price of $16.07 on October 24, 2025, this exchange ratio implies the $39.77 per-share value for Cadence (NYSE: CADE).
The transaction is expected to close in the first quarter of 2026, pending regulatory approvals and shareholder votes.
The merger is projected to be immediately accretive to Huntington's earnings per share (EPS) by about 10%, though it will be mildly dilutive to regulatory capital upon closing and 7% dilutive to tangible book value per share.
Huntington anticipates earning back the dilution within three years, including merger-related expenses. In a nod to enhanced efficiency, the bank raised its medium-term return on tangible common equity (ROTCE) target to 18%-19%, up from 16%-17%, driven by anticipated expense synergies and revenue growth in new markets.
Financial advisors for the deal included Evercore and BofA Securities for Huntington, with Wachtell, Lipton, Rosen & Katz providing legal counsel. Cadence was advised by Keefe, Bruyette & Woods (a Stifel company) on the financial side and Sullivan & Cromwell LLP legally.
Strategic Expansion and Market Impact
For Columbus, Ohio-based Huntington, which manages $223 billion in assets and operates over 1,000 branches across 14 states, the acquisition marks its second major push into Texas this year.
Just last week, it closed a $1.9 billion deal for Dallas-based Veritex Community Bank.
Adding Cadence—a $53 billion-asset regional with dual headquarters in Houston, Texas, and Tupelo, Mississippi, and more than 390 branches in the South—will supercharge Huntington's presence in high-growth Sun Belt markets.
The combined bank will boast $276 billion in assets, $220 billion in deposits, and $184 billion in loans and leases, catapulting it into the ranks of the nation's elite regionals.
Key wins include becoming the No. 1 bank in Mississippi by deposits, entering the top 10 in Alabama and Arkansas, and securing the fifth-largest deposit share in Dallas. Huntington will also gain footholds in booming metros like Houston, Austin, Atlanta, Nashville, Orlando, and Tampa.
"This partnership will extend the reach of our full franchise to 21 states—stretching from the Midwest to the South to Texas—and into new, high-growth markets for which we have a powerful playbook," said Huntington CEO Steve Steinour in a statement.
Cadence's community-oriented model aligns seamlessly with Huntington's, and the company has pledged no branch closures, with Cadence operations rebranding under the Huntington banner while retaining local teams.
Post-merger leadership will see Cadence Chairman and CEO James D. Rollins III transition to non-executive vice chairman of Huntington Bancshares' board, alongside roles as a director for both the holding company and The Huntington National Bank.
Broader Context: A Wave of Regional Bank Mergers
This transaction arrives amid a flurry of activity in the regional banking sector, as mid-sized lenders seek scale to rival giants like JPMorgan Chase, Bank of America, and Wells Fargo.
Just weeks ago, rival Ohio-based Fifth Third Bancorp agreed to a $10.9 billion acquisition of Comerica, the largest bank deal of 2025 so far.
Last month, PNC Financial announced a $4.1 billion purchase of Colorado's FirstBank. Analysts view these moves as a response to post-pandemic challenges, including interest rate volatility and competitive pressures, with mergers offering cost savings and diversified revenue streams.
Market reaction was mixed: Cadence shares rose about 2% in pre-market trading, trimming earlier gains, while Huntington's stock dipped 4% on dilution concerns. TipRanks' AI analyst Spark rates HBAN as an "Outperform," citing strong financials and positive earnings sentiment.
About the Players
Huntington Bancshares, founded in 1866, is a super-regional powerhouse providing consumer and business banking, payments, wealth management, and risk advisory services.
Cadence Bank, committed to community prosperity, offers similar services with a Southern focus, operating in states including Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Missouri, Tennessee, and Texas.
As regional banks redraw the competitive map, this $7.4 billion union underscores a strategic bet on the South's economic vitality.
For investors and customers alike, it promises a more robust, geographically diverse banking option—provided the regulators greenlight the path forward.