Zhi Tong Cai Jing·2025-10-27 13:48Core Points - Huntington Bank (HBAN.US) has agreed to acquire Cadence Bank (CADE.US) for $7.4 billion, marking its second significant acquisition this year aimed at expanding its operations in the southern and southeastern states [1][2] - The acquisition will increase Huntington Bank's footprint to 21 states, adding over 390 Cadence Bank branches and elevating its market share in rapidly growing metropolitan areas like Dallas and Houston to fifth place, while ranking first in Mississippi [1][3] - The deal is part of a broader trend among regional banks in the U.S. as regulatory barriers to consolidation have eased, with other recent significant transactions including Fifth Third Bank's $10.9 billion acquisition of Comerica and PNC Financial Services' $4.1 billion acquisition of First Bank Holding Company [1] Financial Details - Huntington Bank will pay $39.77 per share for Cadence Bank, representing a 9% premium over Cadence's closing price on October 25 [2] - The transaction is expected to dilute Huntington Bank's tangible book value per share by 7% [2] - Following the acquisition, Huntington Bank's total assets will increase to $276 billion, surpassing a critical regulatory threshold that imposes stricter capital, liquidity, and compliance requirements [2] Strategic Expansion - The acquisition will accelerate Huntington Bank's expansion in southeastern states, including Georgia, Tennessee, and Florida, with the combined entity expected to operate approximately 1,450 branches across 21 states, reaching 56% of the U.S. population [3] - The transaction is anticipated to close in the first quarter of 2026, pending regulatory and shareholder approvals [3] - During due diligence, Huntington Bank reviewed over 80% of Cadence Bank's loan portfolio, assessing credit quality and risk policies [3] - Cadence Bank's team and branches will operate under the Huntington Bank brand, with Cadence's CEO joining Huntington's board as a non-executive vice chairman [3]