Huntington Bancshares Incorporated (NASDAQ:HBAN) and Cadence Bank (NYSE:CADE) shares are going in opposite directions on Monday after the companies inked an acquisition deal for $7.4 billion.
Details
As per the deal, Huntington has agreed to an all-stock transaction where each share of Cadence common stock will be exchanged for $2.475 shares of Huntington common shares.
Using Huntington’s Oct. 24, closing price of $16.07, the deal is valued at $39.77 per Cadence share.
Also Read: These Analysts Boost Their Forecasts On Huntington Bancshares Following Strong Q3 Earnings
Subject to regulatory and shareholder approvals, the deal is expected to close in the first quarter of 2026.
Following the anticipated conversion in the second quarter of 2026, Cadence Bank teams and branches will begin operating under the Huntington Bank name and brand.
Synergies For Huntington
The Cadence acquisition, which adds more than 390 locations in Texas and the South, is a significant part of Huntington’s strategic growth plan.
Huntington will have a presence in 12 of the top 25 metropolitan statistical areas (MSAs) in the country.
In conjunction with the previously completed Veritex Community Bank deal, the merger will position Huntington for the fifth deposit market share in both Dallas and Houston, and the eighth in Texas overall.
The combined entity will also become the leading bank in Mississippi and rank among the top 10 in both Alabama and Arkansas by deposits.
The merger is expected to boost Huntington’s EPS by 10%.
This is expected to result in minor dilution to regulatory capital and a 7% dilution to tangible book value per share, which the company intends to recover within three years (including all merger expenses).
Management Commentary
Steve Steinour, chairman, president and CEO of Huntington Bancshares said, “This partnership will extend the reach of our full franchise to 21 states—stretching from the Midwest to the South to Texas—and into new, high-growth markets for which we have a powerful playbook.”
HBAN Price Action: Huntington Bancshares shares were down 3.61% at $15.49 at the time of publication on Monday, according to Benzinga Pro data.
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