Key Takeaways
- Huntington Bancshares will pay $7.4 billion in an all-stock purchase of Cadence Bank.
- The acquisition will expand Huntington’s reach in Texas, and make it the largest bank in Mississippi. The deal is the latest in a series of multibillion-dollar bank mergers.
Another bank is getting gobbled up.
Huntington Bancshares (HBAN) has become the latest financial firm to snap up a smaller bank with its planned $7.4 billion all-stock purchase of Cadence Bank (CADE). Shares of Cadence advanced about 3% Monday, while Huntington’s fell 4%. The KBW Nasdaq Regional Banking Index was recently edging lower on an upbeat day for stocks broadly.
Huntington joins Comerica (CMA), PNC Financial Services Group (PNC), and Pinnacle Financial Partners (PNFP) on a list of recent multibillion-dollar financial-services deals. Comerica was bought by Fifth Third, PNC purchased FirstBank, and Pinnacle acquired Synovus.
The Huntington-Cadence deal, expected to close in the first quarter of 2026, gives Cadence investors 2.475 shares of Huntington stock for every share they own, which values Cadence shares at $39.77 based on Huntington’s Friday close. That’s a 9% premium to Cadence’s price to finish last week.
Why This Is Significant
Huntington Bancshares is expanding its footprint with a $7.4 billion planned all-stock acquisition of Cadence Bank, boosting its presence in Texas, Mississippi, Alabama, and Arkansas. The deal joins recent multibillion-dollar mergers involving Comerica, PNC, and Synovus as regional banks continue to combine.
Ohio-based Huntington said the merger with Houston- and Tupelo, Miss.-based Cadence will give it substantial deposit market shares in Dallas, Houston, and all of Texas. In addition, Huntington will become the largest bank in Mississippi and a top 10 bank in both Alabama and Arkansas by deposits.
In total, Huntington will have locations in 21 states, and 12 of the top 25 metropolitan statistical areas in the U.S. CEO Steve Steinour said the move is “an important next phase of growth” for the bank.
Shares of Cadence Bank are 10% higher year to date. Huntington Bancshares shares are down 4% for the year.
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