Huntington Bancshares to buy Cadence Bank in $7.4 billion deal to expand Southern US presence

Huntington Bancshares is making another big move in its expansion push. The regional lender has agreed to buy Cadence Bank in an all-stock deal valued at $7.4 billion, Reuters reported.

The merger marks Huntington’s latest step toward building a stronger footprint across the southern United States and competing with much larger banks. The combined company will have about $276 billion in assets, $220 billion in deposits, and $184 billion in loans and leases.

Huntington CEO Steve Steinour told analysts that the merger “creates a top-ten regional banking powerhouse that is well-positioned to grow in attractive markets and with a powerful platform for further investment.”

The bank said it will issue 2.475 shares of Huntington common stock for each share of Cadence.

Inside the merger plan

On a call with analysts, Steinour said the two banks have been working closely for months. “We had four months of very detailed planning here. We've made a focus of ensuring we understand their markets, their operating model and their people,” he said.

He also emphasized that both institutions share similar values and that he is “highly confident” Huntington can retain key Cadence employees through the merger, as per Reuters.

Huntington’s stock slipped about 2.5% in early trading after the announcement, trimming some premarket losses. Analysts at Stephens said short-term pressure on the shares was expected due to “book value dilution, a paused buyback, and general deal volatility.”

This is not Huntington’s only move this year. The bank recently closed a $1.9 billion acquisition of Texas-based Veritex, a deal executives say has gone “quite well.”

Expanding in Texas and beyond

The Cadence deal will extend Huntington’s operations to 21 states in the US, adding major markets such as Houston, Dallas, Fort Worth, and Austin. Steinour said the bank has long targeted Texas, which he called a key hub for future growth. “The Lone Star State has become a financial powerhouse in recent years,” he noted.

The bank also raised its medium-term targets following the merger, projecting a return on tangible common equity of 18% to 19%, up from its earlier range of 16% to 17%. Analysts at RBC Capital Markets said the deal “fits nicely” into Huntington’s broader plan to expand in the South and Southeast.

As per The Wall Street Journal, the merger is expected to close in early 2026. Evercore and BofA Securities advised Huntington, while Keefe, Bruyette & Woods represented Cadence.

FAQs

What is the value of Huntington’s deal with Cadence Bank?

The merger is valued at $7.4 billion in an all-stock transaction.

When will the Huntington-Cadence merger close?

The deal is expected to close in the first quarter of 2026.

How many states will Huntington operate in after the merger?

The combined bank will expand its reach to 21 states.