Huntington to Expand South U.S. Presence With Cadence Bank Buyout

Core Insights - Huntington Bancshares Incorporated (HBAN) has agreed to acquire Cadence Bank for approximately $7.4 billion in an all-stock transaction, enhancing its strategic presence in the South, particularly in Texas and Mississippi [1][9]. Deal Terms & Financial Details - Cadence shareholders will receive 2.475 shares of Huntington common stock for each share of Cadence, valuing Cadence shares at $39.77 based on Huntington's closing price of $16.07 on October 24, 2025 [2]. - The transaction is expected to be 10% accretive to Huntington's earnings per share, mildly dilutive to regulatory capital at close, and 7% dilutive to tangible book value per share, with an earn-back period of about three years [3]. Strategic Rationale - The acquisition is a significant step in Huntington's long-term strategy to build a nationwide, customer-centered banking franchise focused on high-growth markets [5]. - The deal expands Huntington's footprint in high-growth markets, including major metropolitan areas such as Houston, Dallas, and Atlanta, positioning the combined company as a top player in several states [7][9]. Market Position & Expansion - Post-acquisition, Huntington will rank fifth by deposit market share in both Dallas and Houston, and eighth in Texas overall, while also becoming a top-10 bank in Alabama and Arkansas by deposits [6]. - The merger will extend Huntington's franchise to 21 states and establish a strategic presence in 12 of the 25 largest U.S. metropolitan areas, including six of the ten fastest-growing regions [7][9]. Recent Expansion Efforts - Huntington has been actively expanding its presence in Texas and other high-growth regions through targeted mergers, including a recent acquisition of Veritex Holdings, Inc. [8]. - The company has also broadened its middle-market banking presence in Texas and introduced new verticals to enhance its service offerings [11][12]. Performance Metrics - Over the past six months, Huntington's shares have increased by 6.8%, outperforming the industry's growth of 5.3% [13].