- Huntington Bancshares’ $7.4B all-stock acquisition of Cadence Bank won final major regulatory clearance from the OCC and is set to close Feb. 1, 2026.
- The merger would create a ~$276B-asset bank with ~$220B in deposits across 21 states, boosting scale in Texas and the South.
- Management projects ~10% EPS accretion, mild capital dilution at close, and ~7% tangible book value dilution with a ~3-year earnback.
- The OCC’s 56-day approval highlights faster bank M&A timelines versus recent large deals, though integration and credit risks remain.
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This deal marks a significant strategic advancement for Huntington. By acquiring Cadence, Huntington gains a vibrant footprint across Southern U.S. states including Texas, Mississippi, and stretching into Alabama, Arkansas, Florida, Georgia, Louisiana, Missouri, and Tennessee. The addition of Cadence’s ~390 branches and 1 million customers complements Huntington’s recent acquisition of Veritex and establishes strength in some of the fastest growing metros in the nation.
Financially, the $7.4 billion valuation—via an all-stock structure with 2.475 Huntington shares per Cadence share—implies a premium and positions the deal as accretive, even if it introduces short-term balance-sheet strain. A 7% dilution in tangible book value is nontrivial, and the earn-back period of about three years suggests Huntington has confidence in integration synergies and cost savings.
Regulatory timing is a critical angle. This deal’s OCC approval in 56 days is among the fastest for deals of this size in 2025, underlining a more permissive regulatory posture under current administration. For context, comparable deals took substantially longer: PNC-FirstBank (~94 days), Pinnacle-Synovus (~124 days) from announcement to Fed approval. Huntington’s ability to close in early 2026 is materially facilitated by this speed. [primary article]
Still, risks remain. Integration challenges—branding, system conversion, retention of depositors—could erode expected gains if not managed tightly. There’s also potential regulatory risk invisibly looming—for example, capital metrics are mildly dilutive, and economic or credit headwinds (e.g., in commercial real estate, interest rate volatility) could strain the merged entity’s performance. Additionally, in another ongoing deal (Fifth Third-Comerica), activist investor pressure indicates that shareholders are demanding tighter negotiation discipline—this could signal scrutiny of Huntington’s valuation or negotiations too.
Strategic Implications:
- Huntington has accelerated its ambition to evolve from a regional to a super-perennial bank, especially via its expansion in Texas and the South.
- Deposit market share gains in major MSAs (Dallas, Houston) give Huntington a better base for both consumer and commercial banking expansion.
- Speed to regulatory close becomes a competitive advantage—companies that can quickly secure OCC/Fed approval may capture value ahead of peers.
- Sustainability of earnings accretion and tangible book recovery depends heavily on internal execution and sector-wide macro stability.
Supporting Notes
- Cadence has ~$53B in assets and $44B in deposits as of Sept. 30, 2025, operating 390+ branches across Texas and the South.
- Upon close of the merger, Huntington’s combined assets will be ~$276B and total deposits ~$220B.
- Deal terms: all-stock merger; Cadence shareholders receive 2.475 Huntington shares per share; values Cadence at approximately $39.77/share based on Huntington’s $16.07 closing price on Oct. 24, 2025.
- Expected financial impact: ~10% accretive to earnings per share; mild regulatory capital dilution at close; ~7% dilution to tangible book value per share, expected to earn back over three years (post-merger costs included).
- Market share: post-merger Huntington will rank fifth in deposit market share in Dallas and Houston, eighth in Texas overall; first in Mississippi; top-10 in Alabama and Arkansas.
- Approval timeline: OCC approval for Huntington-Cadence came 56 days after announcement; by comparison, PNC-FirstBank took ~94 days; Pinnacle-Synovus ~124. [primary article]
- Date of closing and integration: deal expected to close Feb 1, 2026; system conversion in Q2 2026. [primary article]