Huntington to Buy Cadence Bank for $7.4 Billion: A Strategic Push into the South and Texas

Economic perspective:

• Consolidation in regional banking is accelerating as institutions seek scale to manage regulatory and interest rate pressures.

• Customers in the South and Midwest may benefit from enhanced credit access, mortgage options, and deposit flexibility as competition rises.

• The success of Huntington’s dual acquisitions will hinge on smooth digital integration and customer retention through the merger period.

• Looking forward, banks that blend digital innovation with strong local presence will define the next era of U.S. regional banking.

Huntington Bancshares’ announcement to acquire Cadence Bank for $7.4 billion marks one of the most significant regional banking deals of 2025. The all-stock transaction—expected to close in the first quarter of 2026—positions Huntington as a top-10 U.S. bank by assets, expanding its reach across 21 states. For customers, investors, and the broader banking industry, the deal highlights the accelerating wave of regional consolidation and the strategic importance of the Southern market in the era of digital banking and rising interest rate pressures.

A Clear Look at the Deal and Its Structure

Huntington, headquartered in Columbus, Ohio, will acquire Texas- and Mississippi-based Cadence Bank, which holds $53 billion in assets and a strong presence across nine Southern states. The transaction will be executed entirely in stock, with Huntington issuing 2.475 shares for each Cadence share, equivalent to about $39.77 per share based on Huntington’s latest trading price.
Once completed, the combined entity will have $276 billion in assets and $220 billion in deposits, making it one of the top 10 U.S. banks by asset size. The integration of Cadence’s 390 branches and 1 million customers will significantly expand Huntington’s footprint in Texas—now one of the fastest-growing banking markets in America.

For the bank, this acquisition represents a major strategic milestone. Huntington CEO Steve Steinour described it as the “next phase of growth,” noting that it will extend the bank’s franchise into new, high-growth markets across the South and Texas.

How the Acquisition Affects Customers and Businesses

For everyday customers, this merger could mean expanded access to Huntington’s full suite of deposit accounts, checking account services, mortgages, and consumer loans. Cadence’s existing customers will eventually transition to the Huntington brand following a systems conversion in mid-2026, gaining access to the Ohio-based bank’s digital banking platform and credit services.

From a business perspective, the deal will create a stronger lending institution with deeper commercial credit and small business loan capabilities. Cadence’s strength in relationship banking complements Huntington’s expertise in consumer and mortgage lending, potentially improving access to business credit, deposit solutions, and personalized digital services across the South.

For the local economies of Houston, Dallas, and Mississippi, a stronger banking network may stimulate competition for deposits, lower borrowing costs, and increase lending availability for real estate and small businesses—particularly important amid shifting interest rate dynamics and credit demand.

Strategic and Regulatory Implications for the Banking Sector

The Huntington–Cadence merger underscores a broader industry trend: regional banks scaling up to compete with national institutions in a tightening regulatory and interest rate environment.
Analysts note that Texas has become a key battleground for bank mergers, with Fifth Third recently announcing its $10.9 billion acquisition of Comerica. In this context, Huntington’s back-to-back deals—first with Veritex Community Bank ($1.9 billion) and now with Cadence—signal its ambition to become a multi-region powerhouse.

However, regulatory challenges remain. The deal will be mildly dilutive to capital ratios and 7% dilutive to tangible book value, though expected to be 10% accretive to earnings within three years. Huntington also projects $365 million in cost synergies and “high confidence” in achieving revenue growth through its expanded network.

Economic and Future Outlook

By combining two complementary regional banks, Huntington aims to strengthen its deposit base and loan portfolio in some of the nation’s fastest-growing states. The expansion also reflects a broader shift in U.S. banking: while digital banking continues to reshape consumer behavior, physical branches still play a vital role in relationship-driven markets like Texas and the Southeast.
If successful, the merger will create a stronger, more diversified bank capable of navigating economic cycles, competing on interest rates, and offering advanced digital and credit services across a wider footprint.

Closing Insights
The Huntington–Cadence deal reinforces a clear message: scale and regional balance matter in modern banking. As competition for deposits and loans intensifies, banks that can integrate technology, expand geographically, and maintain strong customer relationships will be better positioned for growth.

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