- Huntington Bancshares has received all required regulatory approvals, clearing the way to close its $7.4B all-stock acquisition of Cadence Bank around February 1, 2026, subject to shareholder votes and customary conditions.
- Cadence shareholders will receive 2.475 Huntington shares per Cadence share, valuing Cadence at about $39.77 per share (roughly a 9–10% premium).
- The combined bank is expected to have about $276B in assets and $220B in deposits across 21 states, significantly expanding Huntington’s footprint in Texas and the Southern U.S.
- Management expects roughly 10% EPS accretion but about 7% tangible book value dilution at close with a ~3-year earn-back, alongside rebranding and cost-synergy integration in 2026.
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Huntington’s acquisition of Cadence signals a clear acceleration in its strategy to shift from a concentrated Midwest regional bank toward a larger, multi-state super-regional, with particular emphasis on the high-growth Southern U.S. markets. Having obtained the Office of the Comptroller of the Currency’s approval on December 22, 2025, all regulatory obstacles have been cleared to close by February 1, 2026, contingent on shareholder votes and fulfillment of customary closing conditions.
The deal’s financial structure—an all-stock transaction—offers risk mitigation in volatile interest-rate and economic conditions, while providing Cadence shareholders a ~10% premium and Huntington shareholders a decent earnings per share accretion (~10%) but with some near-term dilution to regulatory capital and tangible book value (7%) that is expected to reverse over three years inclusive of merger costs.
Strategically, Huntington gains immediate scale in critical growth states—Texas, Alabama, Arkansas—being pushed into top-5 deposit rankings in Dallas and Houston, number one in Mississippi, top-10 in Alabama/Arkansas. It expands to 21 states and presence in 12 of the 25 largest U.S. MSAs, broadening its diversification and competitive stance.
On the cost side, Huntington has signalled layoffs at Cadence staff and other efficiencies across branch networks though no branch closures are planned. The integration risks lie in cultural alignment between Huntington’s Fair Play ethos and Cadence’s legacy community-based model, the operational challenge of system conversion in Q2 2026, and potential regulatory burden associated with shifting into super-regional status and associated supervisory categories.
Longer term, the deal reflects accelerating consolidation among regional banks seeking scale to compete in digital banking, deposit-intensive markets, and to optimize costs in a tightening margin environment. Huntington’s move follows its Veritex acquisition and mirrors broader sector trends. The success will depend on execution: earning back tangible book dilution, retaining talent and customers, successfully integrating systems and governance, and managing regulatory oversight as its balance sheet and operations grow substantially.
Open questions: Will accretion targets hold if economic conditions worsen? What are the exact cost synergies and timing? How will regulatory capital ratios evolve under elevated scrutiny? Will customer retention be smooth through rebranding and service changes?
Supporting Notes
- Regulatory approval from the OCC was granted on December 22, 2025; all required regulatory approvals have been received. Merger expected to close February 1, 2026, subject to shareholder approvals and customary closing conditions.
- Cadence Bank is being acquired for approximately $7.4 billion in an all-stock deal issuing 2.475 HBAN shares for each CADE share; this values CADE shares at about $39.77 each—~9-10% premium.
- At closing, the combined company will have ~$276 billion in assets and ~$220 billion in deposits; HBAN currently has ~$223 billion assets while CADE has ~$53 billion.
- The deal will expand Huntington into 21 states and 12 of the 25 largest U.S. metropolitan areas; it boosts its deposit share ranking to fifth in Dallas and Houston, first in Mississippi, top-10 in Alabama & Arkansas.
- Financial impacts include expected 10% accretion to earnings per share at closing; modest dilution to regulatory capital; 7% dilution to tangible book per share, with earn-back over three years (inclusive of merger expenses).
- Planned integration: Cadence branches will be rebranded to Huntington in Q2 2026; Huntington intends to maintain Cadence’s branch network with no closures planned; some staff layoffs announced, though not quantified.