Huntington Bancshares Acquires Cadence Bank in $7.4 Billion Deal

Huntington Bancshares has announced its agreement to acquire Cadence Bank in an all-stock transaction valued at $7.4 billion. This merger, expected to close in the first quarter of 2026, is part of a broader trend of consolidation among regional banks aiming to enhance their competitive positioning against larger financial institutions. The deal will create a top-ten bank in the United States, with combined assets of $276 billion, deposits of $220 billion, and loans and leases totaling $184 billion.

Huntington Bancshares conquers Texas via Cadence BankCNBCReutersCadence Bank rises as Huntington Bancshares looks to acquire it in $7.4B dealBankingDive

The acquisition will allow Huntington to extend its operational footprint to 21 states, including significant markets such as Houston, Dallas, Fort Worth, and Austin. Huntington CEO Steve Steinour emphasized that this partnership will leverage the bank's established strategies to penetrate high-growth markets, enhancing its presence in Texas, which has become a key financial services hub. Analysts from RBC Capital Markets noted that this acquisition aligns with Huntington's long-term growth objectives in the Southeast and Texas.

ReutersCadence Bank rises as Huntington Bancshares looks to acquire it in $7.4B dealCNBCHuntington Bancshares conquers Texas via Cadence BankBankingDive

Huntington anticipates that the merger will be accretive to its earnings per share by approximately 10%, while also projecting a return on tangible common equity (ROTCE) increase to between 18% and 19%, up from a previous target of 16% to 17%. The bank expects to achieve $365 million in pre-tax cost synergies, indicating a strong confidence in the financial benefits of the merger.

Huntington Bancshares conquers Texas via Cadence Bank

Following the merger, Cadence CEO James D. “Dan” Rollins III will transition to a non-executive vice chairman role at Huntington, with two additional Cadence executives joining Huntington's board. The integration process is already underway, with technology teams from both banks having met to ensure a smooth transition. Steinour reassured analysts that Huntington is prepared to manage the integration of both Cadence and a recent acquisition of Veritex Community Bank.

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While the merger has been generally well-received, some analysts have expressed concerns regarding potential short-term pressures on Huntington's shares due to tangible book value dilution and the pausing of stock buybacks until the deal's completion. The market responded with mixed reactions; Cadence shares rose approximately 3.3% in premarket trading, while Huntington shares fell by 4%.

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This acquisition is part of a larger wave of mergers among regional banks, driven by the fragmented nature of the U.S. banking system and regulatory conditions that favor expedited merger approvals. Earlier in October 2025, Fifth Third Bancorp announced its acquisition of Comerica for $10.9 billion, further highlighting the trend of consolidation as banks seek to diversify revenue streams and strengthen their balance sheets.

Cadence Bank rises as Huntington Bancshares looks to acquire it in $7.4B deal

The Huntington-Cadence merger awaits regulatory approval and shareholder consent, with completion expected in early 2026. Financial advisors for the transaction include Evercore and BofA Securities for Huntington, and Keefe, Bruyette & Woods for Cadence. The successful integration of these two banks will be closely monitored as it could reshape the competitive landscape of regional banking in the United States.

Cadence Bank rises as Huntington Bancshares looks to acquire it in $7.4B deal

• “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.” — Steve Steinour, CEO of Huntington Bancshares

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• “Partnering with Huntington will help us do even more to support those we serve,” — James D. “Dan” Rollins III, CEO of Cadence Bank

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