Huntington strikes $7.4 billion deal to expand in the South

Huntington Bancshares Inc. agreed to buy Cadence Bank for $7.4 billion, the Ohio bank’s second major acquisition this year to expand in southern and southeastern states and the latest in a string of deals among US regional lenders.

The acquisition will extend Huntington’s footprint to 21 states, stretching from the Midwest to the South to Texas, according to a statement Monday. The bank will add more than 390 Cadence locations, ranking it fifth by deposit market share in the fast-growing metropolitan areas of Dallas and Houston and No. 1 in Mississippi, according to the statement.

Large regional banks have been snapping up their smaller competitors in recent months as the Trump administration eases regulatory obstacles that had been blocking consolidation in the industry. Earlier this month, Fifth Third Bancorp agreed to buy Comerica Inc. for $10.9 billion in the year’s largest US bank deal. In September, PNC Financial Services Group Inc. said it will acquire FirstBank Holding Co. for $4.1 billion to expand in Colorado.

The takeover of Cadence, which has headquarters in Houston and Tupelo, Mississippi, came a week after Huntington completed its $1.9 billion acquisition of Veritex Holdings Inc., which was announced in July.

“This is an important next phase of growth for Huntington,” Steve Steinour, Huntington’s chairman and chief executive officer, said in the statement. Steinour said on an analyst call that the two companies have been engaged in detailed planning over the past four months.

Huntington is paying $39.77 per Cadence share, or 9% more than Friday’s closing price. Huntington said the deal is expected to be 7% dilutive to its tangible book value per share.

Shares of Cadence rose 4.5% at 10:06 a.m. in New York, and Huntington shares fell 3%.

Cadence has $53 billion in assets, boosting Huntington’s total to $276 billion and pushing it across a critical regulatory threshold that carries with it stricter capital, liquidity and compliance requirements.

It will also speed up Huntington’s expansion in the Southeast, including Georgia, Tennessee and Florida.

The combined company will have roughly 1,450 branches spanning 21 states, giving it an opportunity to reach 56% of the national population in regions with potentially higher population growth, according to a presentation about the transaction.

The transaction is expected to be completed in the first quarter of 2026, subject to approvals by regulators and shareholders. Huntington said it reviewed more than 80% of Cadence’s loan balances in the due diligence process, as well as trends around its credit quality and risk policies.

Cadence’s teams and branches will operate under the Huntington Bank name and brand, and Cadence CEO James “Dan” Rollins III will join Huntington as non-executive vice chairman of the board. Huntington will also invite two additional members from Cadence to join its board.

Evercore and BofA Securities advised Huntington on the transaction, and Cadence was advised by Keefe, Bruyette & Woods.