Huntington Bancshares will buy Dallas-based bank holding company Veritex Holdings for $1.9 billion in stock, the bank said Monday, a year after expanding its commercial banking presence to the region.
In acquiring $13 billion-asset Veritex, which operates Veritex Community Bank, Huntington will also expand further into the Houston area. Huntington’s commercial arm entered Houston in October.
“This combination supports our ambitions and reflects our long-term commitment to the state of Texas, one of the most dynamic and fastest-growing economies in the country,” Huntington CEO Steve Steinour said in a prepared statement. “The Veritex team brings deep local relationships, a strong commercial banking franchise and customer loyalty, and this partnership will serve as a springboard for substantial future growth in the state.”
Veritex operates a 30-branch network, which Huntington plans to maintain and invest in the growth of.
Huntington will issue 1.95 shares for each outstanding share of Veritex, according to the agreement. Huntington expects the transaction to be modestly accretive to its earnings per share, neutral to regulatory capital and slightly dilutive to tangible book value per share.
“Veritex has always been a people and community focused bank. We have found a partner in Huntington Bank who shares and lives out those same values,” said Veritex CEO Malcolm Holland, who will join Huntington in a non-executive role as chairman of Texas.
Huntington entered Texas in 2009 and now has around 200 employees in the state. Veritex was founded one year later but quickly grew into one of the 20 largest banks headquartered in Texas.
"Veritex has assembled a talented and experienced team who have earned the trust and loyalty of individuals, families and companies of all sizes across Texas," Brant Standridge, Huntington’s consumer and regional banking president, said in a prepared statement. "We're excited to build on their impressive legacy and, together with Veritex colleagues, continue to be a reliable partner supporting our customers and communities."
The deal is expected to close in the fourth quarter, subject to regulatory approvals and customary closing conditions. Veritex locations will then operate as Huntington branches.
The Columbus, Ohio-based super-regional’s last acquisitions were of investment adviser Capstone Partners and mortgage lender PhysicianLoans, both in 2022. The lender has recently focused on expanding its branch footprint, including in the Carolinas, where Chief Financial Officer Zach Wasserman said the bank is “ahead of schedule.”
