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Huntington Cadence Bank Merger: Huntington Bancshares announced on Monday that it will acquire Cadence Bank in an all-stock transaction valued at $7.4 billion.
The agreement marks one of the latest efforts by regional lenders to expand their reach and strengthen their position against larger national banks.
The merger reflects a broader wave of consolidation sweeping through the U.S. banking industry.
Analysts say a fragmented market continues to encourage such tie-ups, especially as regulators under the Trump administration move to make merger approvals faster and less cumbersome.
Regional lenders are stepping up merger activity to diversify their income sources, reinforce balance sheets, and tap into faster-growing markets as competition with major U.S. banks intensifies.
Huntington Bancshares said its $39.77-per-share acquisition of Cadence Bank will create one of the country’s ten largest banks.
The combined institution will hold about $276 billion in assets and $220 billion in deposits, with total loans and leases amounting to $184 billion.
Huntington Bancshares announced that it will offer 2.475 of its own shares for every outstanding share of Cadence Bank common stock as part of the merger deal.
In early trading following the announcement, Cadence shares climbed about 2% before trimming some of their gains, while Huntington’s stock slipped roughly 4%.
Expansion Drive
“This partnership will broaden our presence to 21 states, extending from the Midwest and the South to Texas, and will position us in several fast-growing markets where we have a proven strategy,” said Huntington Bancshares CEO Steve Steinour.
Following the merger announcement, the bank revised its medium-term performance goals upward, citing expected cost efficiencies and higher earnings potential.
Huntington now projects a return on tangible common equity between 18% and 19%, up from its earlier estimate of 16% to 17%.
Return on tangible common equity (ROTCE) serves as a key indicator of how effectively a bank uses its core capital to generate returns for shareholders.
Following the merger, Huntington Bancshares will expand its footprint to 21 states across the U.S., establishing a solid presence in fast-growing markets such as Houston, Dallas, Fort Worth, and Austin.
“Huntington has been actively expanding in Texas and the Southeast, and this acquisition fits well with its broader growth strategy,” analysts at RBC Capital Markets said in a note.
Earlier in the month, Fifth Third Bancorp reached an agreement to acquire regional lender Comerica in a $10.9 billion deal, the biggest U.S. banking merger announced so far this year.
The Wall Street Journal was the first to reveal details of the merger, which is expected to be finalized in the first quarter of 2026.
Huntington Bancshares was advised by Evercore and BofA Securities, while Cadence Bank received financial guidance from Keefe, Bruyette & Woods.
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