Huntington Bancshares (HBAN) has agreed to acquire Cadence Bank (CADE) in an all-stock transaction valued at approximately US$ 7.4 billion. Under the terms, Huntington will issue 2.475 shares of its common stock for each outstanding share of Cadence, implying a value of about US$ 39.77 per Cadence share.
This deal will create a combined banking entity with about US$ 276 billion in assets and roughly US$ 220 billion in deposits, positioning the enlarged Huntington among the top ten U.S. regional banks by size. Importantly, the acquisition expands Huntington’s footprint into 21 American states, notably strengthening its presence in the Southern U.S. and Texas markets, including Houston and Dallas.
For Huntington, headquartered in Columbus, Ohio, the move supports a strategic push into faster-growing markets and attempts to build scale to compete more effectively with larger national banks. The bank also upgraded its medium-term target return on tangible common equity (ROTCE) to 18%-19%, up from a previous 16%-17%, citing expected synergies from the transaction.
Cadence, which is dual-headquartered in Houston, Texas, and Tupelo, Mississippi, operates around 390 branches across a number of Southern and Mid-Southern states, including Alabama, Georgia, Louisiana, Arkansas, Missouri and Tennessee. Post-deal, Cadence’s CEO James D. “Dan” Rollins III will join Huntington’s board as non-executive vice chairman, and Cadence’s branches will be rebranded under the Huntington name with no branch closures planned at announcement time.
The deal underscores the ongoing consolidation trend among U.S. regional banks, driven by a fragmented banking system, regulatory easing and the need to scale up in order to contend with megabanks. Cadence shares rose around 2-6% following the announcement, while Huntington shares fell nearly 4-5% in pre-market trading, reflecting investor concern about dilution and integration risk. The transaction is expected to close in the first quarter of 2026, still subject to shareholder and regulatory approvals.
