WASHINGTON — Huntington Bancshares announced Monday that it will acquire smaller rival Cadence Bank in an all stock transaction valued at $7.4 billion, marking one of the year’s most significant regional bank mergers.
The move reflects a growing trend among mid sized US lenders to build scale, diversify geographically, and strengthen financial resilience amid rising competition from national banking giants.
The deal, expected to close in the first quarter of 2026 pending regulatory and shareholder approvals, will create a top ten regional bank with $276 billion in assets and $220 billion in deposits, according to a joint statement from the two lenders.
Under the agreement, Huntington Bancshares will issue 2.475 shares of its common stock for each outstanding share of Cadence Bank. The transaction values Cadence at roughly $39.77 per share, representing a modest premium to its recent closing price.
Founded in Columbus, Ohio, Huntington has long been a dominant player in the Midwest. Cadence, based in Tupelo, Mississippi, has a strong presence in the South, particularly in Texas markets such as Houston, Dallas, and Austin.
The merger is the latest in a wave of consolidation reshaping the regional banking landscape. In recent months, Fifth Third Bancorp agreed to acquire Comerica Bank for $10.9 billion, marking the year’s largest bank deal prior to Huntington’s announcement.
Analysts say such moves are driven by the need for scale and digital transformation, as smaller institutions struggle to compete with the technological and capital advantages of larger banks.
“This partnership extends the reach of our full franchise to twenty one states stretching from the Midwest to the South to Texas and positions us in some of the fastest growing markets in the country,” Huntington CEO Steve Steinour said in a prepared statement.
Steinour added that the acquisition would provide “enhanced earnings potential” through operational synergies and stronger capital efficiency. The bank raised its medium term return on tangible common equity (ROTCE) target to 18 to 19 percent, up from 16 to 17 percent.
Analysts welcomed the move as a strategic fit. RBC Capital Markets wrote in a client note that “Huntington has been signaling its ambition to expand in Texas and the Southeast, and this deal fits neatly into that broader strategy.”
Banking analyst Megan Landers of Piper Sandler noted that the timing of the deal reflects confidence in the regulatory environment under the Trump administration.
“Merger reviews have become more predictable, and that certainty encourages regional players to pursue transformative deals,” she said.
The combined bank will rank among the top ten regional lenders in the United States, with approximately $184 billion in loans and leases.
Huntington said the transaction would be earnings accretive within its first full year of completion, largely due to cost reductions and increased scale in lending operations.
Cadence currently operates around 350 branches across nine states, while Huntington has more than 1,000 branches. Post merger, the company plans to consolidate overlapping locations but emphasized that it will continue to invest heavily in digital banking and small-business lending.
By comparison, Fifth Third’s merger with Comerica created a combined institution of roughly $310 billion in assets, underscoring how Huntington’s latest deal positions it close to its largest regional peers.
“Scale is the new survival strategy,” said Brian Foran, a banking industry strategist. “Regional lenders must find ways to spread technology costs, increase fee based revenue, and manage credit risk more efficiently. Mergers like this one are part of that equation.”
In Texas, where Huntington will gain a significant foothold, local business owners expressed mixed feelings.
“I’ve banked with Cadence for nearly a decade because of their community approach,” said Derrick Thomas, a small business owner in Houston.
“When big banks come in, you sometimes lose that local relationship. I just hope Huntington keeps that personal touch.”
Employees are also watching the integration closely. A Cadence branch manager in Dallas, who requested anonymity because they were not authorized to speak publicly, said staff had been told that “most front line roles will remain unchanged” after the merger but acknowledged that “some overlap in back office functions is likely.”
Community leaders, however, welcomed the move as a sign of economic growth. Lisa Ortega, director of the Southeast Business Chamber, said, “Having a larger, well capitalized bank here could mean more access to credit for small businesses, especially in underbanked neighborhoods.”
If approved, the Huntington Cadence merger could serve as a model for similar transactions across the regional banking sector. Analysts expect at least a half-dozen comparable deals over the next year as lenders look for stability amid economic uncertainty and tighter credit markets.
The combined company aims to deepen its presence in energy, real estate, and middle market lending sectors where both banks already have strong roots. It also plans to expand its digital offerings to attract younger customers, particularly in fast growing metropolitan areas like Austin and Nashville.
“Huntington is betting that a larger geographic footprint will help it capture cross-market efficiencies and new customers,” said Michael Dalton, a senior banking consultant at Keefe, Bruyette & Woods.
“It’s a smart, defensive play against the encroachment of fintechs and national banks.” Still, some regulators may scrutinize the deal’s impact on competition in smaller markets.
The banks said they would work closely with the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to ensure compliance with all antitrust and community lending requirements.
Huntington Bancshares’ planned $7.4 billion acquisition of Cadence Bank represents a defining moment in the ongoing consolidation of America’s regional banking industry.
By combining two complementary networks one rooted in the Midwest, the other in the South the new institution will emerge as a stronger, more geographically diverse competitor in an increasingly concentrated financial landscape.
Pending approvals, the deal is expected to close by early 2026, with integration efforts beginning shortly thereafter. Whether this merger sparks a new wave of regional bank combinations remains to be seen, but for now, Huntington’s bold move signals that scale and strategic reach remain the currency of survival in modern banking.