Quick Read
- Huntington Bancshares will acquire Cadence Bank in a $7.4 billion all-stock deal.
- The acquisition expands Huntington’s footprint to 21 states and $276 billion in assets.
- Cadence’s branch network will remain intact, with no closures planned.
- The deal is expected to close in Q1 2026, pending regulatory and shareholder approval.
- Cadence’s CEO and two board members will join Huntington’s board post-merger.
Why Huntington’s Acquisition of Cadence Bank Is More Than Just Another Merger
The landscape of American banking is shifting, and nowhere is that more evident than in Huntington Bancshares’ bold $7.4 billion move to acquire Cadence Bank. This isn’t simply a headline-grabbing transaction; it’s a calculated push into the heart of the Southern U.S., aiming to reshape the balance of power among super-regional banks.
Announced on October 27, 2025, the all-stock deal will see Huntington Bancshares Incorporated (Nasdaq: HBAN), based in Columbus, Ohio, absorb Cadence Bank’s $53 billion assets and its extensive network of more than 390 branches. Cadence, with dual headquarters in Houston, Texas, and Tupelo, Mississippi, has carved out a robust presence across states like Alabama, Arkansas, Florida, Georgia, Louisiana, Missouri, Tennessee, and especially Texas and Mississippi. Upon completion, Huntington will emerge with an impressive $276 billion in assets and $220 billion in deposits, according to KAIT8 and Banking Dive.
Strategic Expansion: Beyond the Numbers
On paper, the deal is about growth. In practice, it’s about strategic positioning. Huntington’s acquisition will propel it into the top ranks in several key Southern markets. The combined entity will claim the fifth-largest deposit market share in both Dallas and Houston, and eighth overall in Texas. Mississippi will see Huntington ascend to the number one spot by deposits, while Alabama and Arkansas will witness the bank become a top ten player.
This is not Huntington’s first foray into the region. Just weeks prior, it closed a $1.9 billion deal for Dallas-based Veritex Community Bank. As Brant Standridge, Huntington’s President of Consumer and Regional Banking, noted in a press call, Veritex strengthens Huntington’s position in Dallas and commercial lending, while Cadence brings depth in Houston and consumer banking across central Texas. Together, they create a platform for organic growth in 12 of the nation’s top 25 metropolitan statistical areas—including six of the fastest-growing.
Culture and Continuity: What Happens to Cadence?
Bank mergers often spark anxiety over branch closures and lost local connections. Huntington is taking a different approach. According to statements from Huntington CEO Steve Steinour and Cadence CEO James D. “Dan” Rollins III, Cadence’s broad branch network will remain intact, with no planned closures. In fact, Huntington intends to invest in growth, not retrenchment.
“We’ve been delivering for our customers and communities for 150 years, and partnering with Huntington will help us do even more,” Rollins emphasized. Upon closing, Rollins will join Huntington as non-executive Vice Chairman of the Board, with two additional Cadence board members coming onboard. The aim is to blend Cadence’s relationship-first, community-based ethos with Huntington’s digital innovations and Fair Play products—services designed to eliminate hidden fees and provide fair access to banking.
Cadence customers will gain access to Huntington’s suite of consumer-friendly features, including 24-Hour Grace®, Standby Cash®, and Early Pay, further enhancing their banking experience.
The Deal’s Mechanics and Industry Implications
The financial mechanics are straightforward: Huntington will issue 2.475 shares of its common stock for each outstanding Cadence share, valuing Cadence at $39.77 per share based on Huntington’s October 24 closing price. The transaction is entirely stock-based, with an aggregate value of $7.4 billion.
For Huntington, the deal is projected to be accretive to earnings per share by about 10%, though it will be “mildly dilutive” to regulatory capital at closing and 7% dilutive to tangible book value (with an expected three-year earn-back period, merger expenses included). Huntington also expects $365 million in pre-tax cost synergies, with additional revenue synergies anticipated, though not quantified publicly.
The acquisition is expected to close in the first quarter of 2026, pending regulatory and shareholder approvals. Systems conversion and rebranding of Cadence branches will follow in the second quarter. Advisors on the transaction include Evercore and Wachtell, Lipton, Rosen & Katz for Huntington; Keefe, Bruyette & Woods and Sullivan & Cromwell LLP for Cadence.
The Broader Banking Context: Consolidation and Competition
This deal unfolds against a backdrop of accelerated bank consolidation. The Wall Street Journal notes that the sector has seen a resurgence of large-scale mergers, with Fifth Third Bancorp’s $10.9 billion Comerica deal and PNC Financial’s $4.1 billion FirstBank acquisition just this year. The regulatory environment, described as “constructive” by Huntington’s Steinour, has encouraged these moves, aiming to bolster competition against industry giants like JPMorgan Chase and Bank of America.
Yet, with consolidation comes scrutiny. The Federal Deposit Insurance Corp. (FDIC) is contending with a national shortage of bank examiners, potentially slowing oversight and risk validation at a time when technology, third-party partnerships, and AI-driven banking services are proliferating. As noted by PYMNTS, the number of problem institutions has increased, raising questions about the long-term stability and regulatory clarity in the sector.
Looking Ahead: Integration and Challenges
Huntington’s management acknowledges the challenges of back-to-back integrations, especially with Veritex and Cadence deals sequenced so closely. Technology and integration teams have already begun coordinating, and CEO Steinour has sought to reassure analysts of the bank’s readiness to handle the complexity.
From a customer perspective, the merger promises expanded services, greater access to digital banking, and continuity in local relationships—a blend of scale and neighborhood trust. For Huntington, the move is a leap toward its stated ambition: becoming the leading people-first, customer-centered bank in the country.
But the stakes are high. The integration must deliver on its promises without disrupting communities or eroding the trust Cadence has built over generations. With the banking industry’s backbone under scrutiny and technology advancing rapidly, Huntington’s playbook for growth will be tested in real time.
As Huntington Bancshares absorbs Cadence Bank, the transaction stands as both a testament to regional ambition and a litmus test for the future of relationship banking in an era of consolidation. Success will hinge not only on financial metrics, but on Huntington’s ability to balance scale with genuine local engagement—a challenge that will define its legacy in the South and beyond.