COLUMBUS, Ohio & HOUSTON & TUPELO, Miss. – October 27, 2025 – The landscape of the U.S. regional banking sector is seeing a significant realignment today as Huntington Bancshares Incorporated (HBAN) announced a definitive agreement to acquire Cadence Bank (CADE) in a substantial all-stock transaction valued at approximately $7.4 billion.
The deal, revealed this morning, marks a pivotal strategic move for Huntington, a major regional bank holding company headquartered in Columbus, Ohio, as it seeks to aggressively expand its footprint across the rapidly growing Southern United States. The acquisition of Houston and Tupelo-headquartered Cadence Bank, which currently commands assets of $53 billion, immediately establishes a much stronger strategic presence for Huntington across key Sun Belt markets.
Strategic Expansion into High-Growth Southern Markets
The primary driver behind this significant merger and acquisition activity appears to be geographic synergy and scale. Cadence Bank brings a robust network of over 390 locations spanning Texas and the broader South, including operations in high-demand metropolitan areas such as Houston, Dallas, Austin, Atlanta, Nashville, Orlando, and Tampa. Huntington has explicitly stated its intention to leverage this newly acquired infrastructure for further organic investment, signaling a long-term commitment to these markets rather than consolidation via branch closures.
According to the joint announcement, the combined entity is projected to vault into the ranks of the top 10 banks nationally, boasting pro forma assets of $276 billion and deposits totaling $220 billion. This increased scale is crucial in the current financial climate, offering enhanced competitive advantages in lending capacity, technology investment, and operational efficiency.
Transaction Details: An All-Stock Consideration
Under the terms ratified by the boards of both institutions, Huntington will issue 2.475 shares of its common stock for every outstanding share of Cadence common stock. This structure means the deal is 100% stock-based, which can be attractive to Cadence shareholders looking for continued participation in the combined entity’s future growth trajectory.
The implied valuation of $39.77 per Cadence share is based on Huntington's closing stock price of $16.07 from the preceding trading day, October 24, 2025. While the transaction is expected to be immediately accretive to Huntington’s earnings per share by 10%, analysts note that it will be mildly dilutive to regulatory capital at the close and about 7% dilutive to tangible book value per share, with an expected earn-back period of three years, inclusive of merger-related expenses.
Leadership Commentary and Future Outlook
James D. "Dan" Rollins III, Chairman and CEO of Cadence Bank, characterized the agreement as a "defining moment" for his institution. He emphasized that the partnership with Huntington would enable Cadence to "do even more to support those we serve," stressing a shared commitment to relationship-first banking while unlocking new avenues for innovation.
Upon the successful conclusion of the merger, Rollins is slated to join Huntington's senior management team as a non-executive Vice Chairman, ensuring continuity and strategic insight from the acquired leadership. Huntington’s senior management is scheduled to host a conference call later this morning to delve deeper into the strategic and financial implications of this major banking M&A event.
The acquisition underscores a continuing trend in the financial services industry where well-capitalized regional players are seeking expansion through strategic mergers to build resilience, achieve greater economies of scale, and effectively compete against larger national institutions in key economic corridors. The successful integration of Cadence’s substantial Southern deposit base and branch network positions Huntington for sustained growth as a leading national regional bank.
The transaction is subject to customary closing conditions, including the necessary regulatory approvals from federal banking agencies and the approval of Cadence stockholders.