Huntington Bancshares to Acquire Cadence Bank in $7.4 Billion Deal

Huntington Bancshares, a leading regional bank holding company, has agreed to acquire Cadence Bank in an all-stock deal valued at $7.4 billion. The acquisition will create a top-ten bank with assets of $276 billion and deposits of $220 billion, expanding Huntington’s footprint to 21 states in the US.

Deal Details

Under the terms of the agreement, Huntington will issue 2.475 shares of common stock for each outstanding share of Cadence common stock. The deal values Cadence shares at $39.77 per share, representing a premium to the bank’s current market price. The acquisition is expected to be 10% accretive to Huntington’s earnings per share (EPS) and mildly dilutive to regulatory capital at close. However, the bank expects to achieve expense synergies and enhanced earnings potential from the deal, driving long-term growth ¹.

Strategic Rationale

The acquisition is a strategic fit for Huntington, allowing the bank to expand its presence in high-growth markets such as Texas and the Southeast. The combined bank will have a significant presence in 21 states, with over 390 locations across the region. Huntington CEO Steve Steinour said, “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.”

Financial Impact

The deal is expected to enhance Huntington’s financial performance, with the bank raising its medium-term performance targets. Huntington now expects return on tangible common equity (ROTCE) of 18% to 19%, up from its previous target of 16% to 17%. ROTCE is a key measure of a bank’s ability to generate profits from its core capital. The acquisition will also increase Huntington’s scale, with combined assets of $276 billion and deposits of $220 billion ².

Industry Trends

The acquisition is part of a broader trend of consolidation in the US banking industry, driven by the need for regional lenders to grow their footprint and compete with larger banks. Earlier this month, Fifth Third agreed to buy regional lender Comerica in a $10.9 billion deal, highlighting the ongoing momentum in the sector.

Closing and Integration

The deal is expected to close in the first quarter of 2026, subject to regulatory approvals and shareholder approval. Upon closing, Cadence Bank teams and branches will operate under the Huntington Bank name and brand. Huntington’s senior management will host a conference call to discuss the acquisition and its strategic and financial implications ¹.

Conclusion

The acquisition of Cadence Bank by Huntington Bancshares is a significant development in the US banking industry, highlighting the ongoing trend of consolidation and growth among regional lenders. The deal is expected to enhance Huntington’s financial performance, expand its presence in high-growth markets, and create a top-ten bank with a strong franchise. With its increased scale and scope, Huntington is well-positioned to compete with larger banks and drive long-term growth for its shareholders.

Frequently Asked Questions (FAQs) about Huntington’s Acquisition of Cadence Bank

Q: What is the acquisition deal between Huntington and Cadence Bank?
A: Huntington Bancshares has agreed to acquire Cadence Bank in an all-stock deal valued at $7.4 billion.

Q: What are the terms of the acquisition deal?
A: Huntington will issue 2.475 shares of common stock for each outstanding share of Cadence common stock, valuing Cadence shares at $39.77 per share.

Q: What are the benefits of the acquisition for Huntington?
A: The acquisition will expand Huntington’s footprint to 21 states, increase its scale and scope, and enhance its financial performance.

Q: What are the expected financial benefits of the acquisition?
A: Huntington expects the acquisition to be 10% accretive to EPS and achieve expense synergies and enhanced earnings potential from the deal.

Q: When is the deal expected to close?
A: The deal is expected to close in the first quarter of 2026, subject to regulatory approvals and shareholder approval.

Q: What will happen to Cadence Bank’s branches and employees?
A: Upon closing, Cadence Bank teams and branches will operate under the Huntington Bank name and brand.

Q: How will the acquisition impact Huntington’s financial performance?
A: The acquisition is expected to enhance Huntington’s financial performance, with the bank raising its medium-term performance targets to achieve ROTCE of 18% to 19%.

Q: What is the strategic rationale behind the acquisition?
A: The acquisition is a strategic fit for Huntington, allowing the bank to expand its presence in high-growth markets such as Texas and the Southeast.

Q: How will the acquisition impact customers?
A: The acquisition is expected to provide customers with access to a wider range of products and services, as well as a stronger financial institution.

Q: What are the potential risks associated with the acquisition?
A: As with any acquisition, there are potential risks associated with integration, regulatory approval, and market conditions.

Additional Information

• The acquisition is subject to customary closing conditions, including regulatory approvals and shareholder approval.
• Huntington and Cadence Bank have agreed to work together to ensure a smooth transition and minimize disruption to customers and employees.
• The acquisition is expected to position Huntington as a top-ten bank in the US, with a strong franchise and enhanced financial performance.

By providing answers to these frequently asked questions, we hope to provide clarity and insight into the acquisition and its potential impact on customers, employees, and shareholders.