In a significant move poised to reshape the Southern US banking landscape, Huntington Bancshares has announced its acquisition of regional bank Cadence Bank in an all-stock deal valued at $7.4 billion. This strategic merger is designed to substantially boost Huntington's presence across the Southern United States, aiming to establish it as a dominant player in key growth markets.
Under the terms of the agreement, Huntington will issue 2.475 common shares for each outstanding common share of Cadence. The transaction, expected to conclude in the first quarter of 2026, will see Huntington become the number one bank in Mississippi and a top-ten institution in both Alabama and Arkansas by deposits. Importantly, Huntington has committed to not closing any of Cadence's existing branches, ensuring continuity for customers while the Cadence teams and branches transition to operate under the Huntington Bank brand. This expansion is also set to provide a strong foothold in burgeoning markets such as Houston, Dallas, Atlanta, and Nashville.
Following the announcement, Huntington Bancshares' shares saw a modest dip of 3.2% in midday trading, while Cadence Bank's stock climbed by nearly 4%, reflecting investor sentiment on the deal. This major acquisition also highlights a broader trend: US bank merger and acquisition activity reached a four-year high in the third quarter of 2025, with 52 transactions announced. For investors, such large-scale consolidation underscores the dynamic nature of the financial industry and the continuous drive for strategic growth and market share among institutions.
