Huntington Bank will acquire Texas- and Mississippi-based Cadence Bank in a $7.4 billion, all-stock transaction that’s expected to close in the first quarter of 2026, the banks said Monday.
It’s the second Texas-related acquisition this year for $223 billion-asset Huntington. The Columbus, Ohio-based regional acquired Dallas-based Veritex Community Bank for $1.9 billion; that deal closed last week.
Cadence, which has $53 billion in assets, has dual headquarters in Houston and Tupelo, Mississippi. The bank has about 390 branches and 1 million customers across Texas, Mississippi, Alabama, Arkansas, Florida, Georgia, Louisiana, Missouri and Tennessee.
Acquiring Cadence would create a top-10 bank with $276 billion in assets and $220 billion in deposits, Huntington said, and expand the Ohio lender’s footprint to 21 states.
Huntington called the deal “significant milestone” in its strategic growth plan. Buying Cadence will give Huntington the fifth-largest deposit market share in Dallas, the regional lender said. It would also rank fifth in deposit market share in Houston and eighth across Texas, the bank added.
Additionally, Huntington will become the top bank in Mississippi and a top-10 bank in Alabama and Arkansas by deposits, the bank said.
“This is an important next phase of growth for Huntington,” CEO Steve Steinour said in a news release. “This partnership will extend the reach of our full franchise to 21 states — stretching from the Midwest to the South to Texas — and into new, high-growth markets for which we have a powerful playbook. Today's announcement represents a significant step on our journey to be the leading people-first, customer-centered bank in the country.”
After the transaction is complete, Cadence CEO James D. “Dan” Rollins III will become a non-executive vice chairman of Huntington Bancshares’ board and a director on the bank’s board. Two additional members from Cadence will be invited to join Huntington’s board, the Ohio lender said.
“Partnering with Huntington will help us do even more to support those we serve,” Rollins said in the release. “This is a defining moment for Cadence Bank and we're confident this alignment will create lasting value across our footprint and beyond. Together, we will continue to prioritize relationship-first banking while unlocking new opportunities for growth and innovation.”
Systems conversion is expected in the second quarter of 2026. Cadence Bank teams and branches will adopt the Huntington Bank name and brand.
Huntington will issue 2.475 shares of common stock for each outstanding share of Cadence common stock in the transaction, according to the news release. Based on Huntington's closing price of $16.07 as of Friday, the consideration implies $39.77 per Cadence share.
During a call Monday to discuss the deal, Steinour said the deal will make Huntington a “multi-region powerhouse” and the 10th largest bank in the country.
Brant Standridge, Huntington’s president of consumer and regional banking, noted the complementary nature of the Veritex and Cadence deals. Veritex has density in Dallas and commercial lending, while Cadence has a strong presence in Houston and central Texas and will bolster Huntington’s consumer presence in Texas, he said.
The Cadence transaction is expected to be about 10% accretive to Huntington's earnings per share, “mildly dilutive” to regulatory capital upon close and 7% dilutive to tangible book value, with a three-year earnback period that’s inclusive of merger expenses.
Huntington has flagged $365 million in pre-tax cost synergies, and has “high confidence” in achieving revenue synergies, said CFO Zach Wasserman during the call, although figures weren’t shared.
Between an aggressive organic strategy and the Veritex integration underway, Huntington “now has quite a bit on its plate,” Piper Sandler analyst Scott Siefers noted Monday.
Steinour sought to assure analysts during the call that Huntington was prepared to handle back-to-back deals and integrations. Huntington and Cadence executives had been in talks for about four months prior to Monday’s announcement, and technology and integration teams have already met.
“These have been purposefully sequenced,” Steinour said of Veritex and Cadence. “We have a lot on our plate. We’re fully committed to delivering both” organic growth and integrating both deals.
Earlier this month, Cincinnati-based Fifth Third said it would acquire Dallas-based Comerica for $10.9 billion. Texas has been one of the most targeted states for bank M&A activity this year.
