Huntington Bancshares to acquire Cadence Bank in $7.4 billion deal
Huntington Bancshares announced Monday that it will buy smaller rival Cadence Bank in an all-stock deal valued at $7.4 billion, reflecting a growing trend of regional bank mergers aimed at expanding reach and competing with larger institutions, News.Az reports, citing CNBC.
The acquisition, priced at $39.77 per Cadence share, will create a top-ten U.S. bank with $276 billion in assets, $220 billion in deposits, and $184 billion in loans and leases.
Huntington will issue 2.475 shares for each Cadence share.
Huntington CEO Steve Steinour said the merger will extend the bank’s footprint to 21 states, including key high-growth markets in Texas such as Houston, Dallas, Fort Worth, and Austin. Analysts noted that the deal aligns with Huntington’s strategy to expand in Texas and the Southeast.
The bank also raised its medium-term performance targets, citing expense synergies and higher earnings potential. Return on tangible common equity (ROTCE) is now projected at 18–19%, up from the previous 16–17% target.
Shares reacted to the announcement, with Cadence up about 2% before the bell, while Huntington fell 4%. The deal comes amid a wave of U.S. bank consolidation, driven by a fragmented banking system and regulatory support for faster merger approvals.
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