Continued wave of bank consolidation in the United States region, Huntington Bank (HBAN.US) acquires Cadence Bank (CADE.US) for $7.4 billion.

Huntington Bank (HBAN.US) has agreed to acquire Cadence Bank (CADE.US) for $7.4 billion. This is the second significant acquisition made by the Ohio-based bank this year to expand its operations in the southern and southeastern states, and it is the latest in a series of transactions among regional banks in the United States. According to a statement released on October 28th, this acquisition will expand Huntington Bank's operations to 21 states, extending from the Midwest to the South and Texas. The statement stated that this acquisition will add more than 390 Cadence Bank branches to Huntington Bank, making it rank fifth in deposit market share in rapidly growing metropolitan areas like Dallas and Houston, and first in Mississippi. In recent months, as regulatory barriers to industry consolidation have been relaxed, large regional banks have been acquiring smaller competitors. Earlier this month, Fifth Third Bancorp agreed to acquire Comerica Inc. for $10.9 billion, making it the biggest deal of the year for Bank of America Corp. In September, PNC Financial Services Group, Inc. announced its $4.1 billion acquisition of First Bank Holding Company to expand its operations in Colorado. Just a week before completing the acquisition of Cadence Bank, Huntington Bank had completed a $1.9 billion acquisition of VeraTek Holdings Inc., announced in July. Cadence Bank is headquartered in Houston and Tupelo, Mississippi. Huntington Bank Chairman and CEO Steve Steinour stated in the statement, "This is the next important phase of growth for Huntington Bank." The acquisition price per share of Cadence Bank by Huntington Bank is $39.77, a 9% premium over the closing price on October 25. Huntington Bank stated that this transaction is expected to dilute its tangible book value per share by 7%. In early trading on the New York Stock Exchange on October 28, Cadence Bank's stock rose by 3% while Huntington Bank's stock fell by 4.5%. With $53 billion in assets, Cadence Bank will increase Huntington Bank's total assets to $276 billion, pushing it past a key regulatory threshold that requires banks to meet stricter capital, liquidity, and compliance requirements. This acquisition will also accelerate Huntington Bank's expansion in the southeastern states, including Georgia, Tennessee, and Florida. According to a briefing on the transaction, the merged company will have approximately 1,450 branches across 21 states, giving it the opportunity to reach 56% of the US population in areas with potentially higher population growth potential. The transaction is expected to be completed in the first quarter of 2026, subject to regulatory and shareholder approvals. During the due diligence process, Huntington Bank reviewed over 80% of Cadence Bank's loan balances, as well as its credit quality and trends in risk policy. The team and branches of Cadence Bank will operate under the name and brand of Huntington Bank, and Cadence Bank CEO James "Dan" Rollins, Inc. III will join Huntington Bank as the non-executive vice chairman of the board. Huntington Bank will also invite two additional members of Cadence Bank to join its board of directors.