Huntington to Strengthen Texas Presence With Veritex Buyout

Core Viewpoint - Huntington Bancshares (HBAN) has announced a definitive agreement to acquire Veritex Holdings, Inc. (VBTX) in an all-stock transaction valued at $1.9 billion [1][10]. Acquisition Details - Huntington will issue 1.95 shares for each outstanding share of Veritex, implying a value of $33.91 per Veritex share based on HBAN's closing price on July 11, 2025 [2]. - The deal has received unanimous approval from both companies' boards and is expected to close in early Q4 2025, pending regulatory and shareholder approval [2]. Financial Impact - The transaction is projected to be modestly accretive to Huntington's earnings per share and neutral to regulatory capital at closing [3]. - It is expected to be slightly dilutive to tangible book value per share, with a payback period of approximately one year from closing [3]. Operational Changes - Upon completion, Veritex branches will operate under the Huntington Bank brand, with plans to maintain and expand Veritex's existing branch network in Texas, including Dallas/Fort Worth and Houston [4][10]. Strategic Rationale - The acquisition aims to accelerate Huntington's organic growth in Texas, particularly in the Dallas/Fort Worth and Houston markets [5]. - The merger will add approximately $13 billion in assets, $9 billion in loans, and $11 billion in deposits to Huntington's balance sheet [5][10]. - Huntington's CEO emphasized the importance of local relationships and customer loyalty brought by Veritex, which will support future growth in Texas [6]. Expansion Efforts - Huntington has been actively expanding its commercial banking business in Texas, including the introduction of new verticals such as the Financial Institutions Group and the Aerospace & Defense Group [7]. - These strategic efforts are expected to enhance Huntington's commercial banking capabilities and attract new customer segments across the region [8]. Market Performance - Over the past year, shares of Huntington have risen 19%, outperforming the industry's growth of 16.4% [11].