Huntington Completes $7.4 Billion Acquisition of Cadence Bank, Expanding National Footprint

October 27, 2025

A meaningful wave of consolidation is sweeping through the banking industry, as institutions seek to enhance their competitive positioning and navigate a rapidly evolving financial landscape. Huntington National bank recently announced an all-stock agreement to acquire Cadence Bank for $7.4 billion, the latest in a series of multibillion-dollar deals reshaping the sector.

Huntington and Cadence: A Strategic Alignment

The merger will create a financial powerhouse with approximately $276 billion in assets, elevating Huntington’s status among “super-regional” banks. This strategic move allows Huntington to broaden its reach, particularly into the Southeastern United States, where Cadence Bank maintains a strong presence in Texas and Mississippi. According to Huntington Chief Executive Officer Steve Steinour, this transaction signifies an “important next stage” in the company’s growth trajectory.

Industry-Wide trend of Consolidation

The banking industry has anticipated an increase in mergers and acquisitions as smaller and regional banks aim to compete more effectively with industry giants like JPMorgan Chase and Bank of America. This consolidation trend is largely driven by the need to achieve economies of scale, invest in new technologies, and adapt to increasing regulatory pressures. Several other notable deals have recently been finalized, demonstrating this growing momentum.

Fifth Third Bancorp, for instance, is set to acquire Comerica for $10.9 billion, while PNC Bank completed a $4.1 billion deal to acquire FirstBank. Additionally, FNBO acquired Missouri’s Contry Club Bank in a privately held transaction earlier this year. These deals collectively indicate a period of significant restructuring within the banking sector.

Recent Bank Acquisition Deals (2025)

Acquirer	Target	Deal Value
Huntington National Bank	Cadence Bank	$7.4 Billion
Fifth Third Bancorp	Comerica	$10.9 Billion
PNC Bank	FirstBank	$4.1 Billion
FNBO	Country Club Bank	Undisclosed

Did You Know? According to the Federal Deposit Insurance Corporation (FDIC), the number of “problem institutions” rose by 55% to 68 as of the end of the surveyed period.

Regulatory Shifts and Their Impact

A more favorable regulatory surroundings, particularly from the trump administration, is also contributing to the surge in bank consolidation. This shift in policy aims to alleviate burdens on smaller banks and encourage further mergers, fostering a more competitive market. Steinour noted that discussions between Huntington and Cadence have been ongoing for roughly four months, facilitated by this “constructive” regulatory landscape.

Challenges: A Looming Shortage of Bank Examiners

Despite the positive momentum in bank consolidation, the sector faces challenges. A growing shortage of bank examiners, stemming from reductions in jobs at the FDIC, is raising concerns about supervisory oversight. The number of examinations conducted last year declined by 11%, while the number of at-risk institutions climbed considerably. This staffing deficit could impede the validation of risk models, the approval of third-party vendors, and the review of emerging technologies.

pro Tip: Banks should proactively engage with regulators to address potential delays stemming from the examiner shortage and ensure adherence to evolving standards.

The Future of Banking Consolidation

The trend of consolidation is expected to continue as banks adapt to evolving market dynamics and regulatory pressures. Factors such as technological advancements, increasing compliance costs, and the need for greater scale will likely drive further mergers and acquisitions in the coming years. banks that can proactively adapt and innovate will be best positioned to thrive in this changing environment.

Frequently Asked Questions about Bank Consolidation

• What is bank consolidation? Bank consolidation refers to the process of banks merging or being acquired by other institutions, resulting in fewer, larger banks.
• Why are banks consolidating? Banks consolidate to achieve economies of scale, expand their market reach, and improve their competitive positioning.
• What impact does bank consolidation have on consumers? Consolidation can lead to increased efficiency and perhaps lower fees, but it may also reduce competition and limit consumer choice.
• what is the role of regulation in bank consolidation? regulatory policies can either encourage or discourage bank consolidation, influencing the pace and scope of the trend.
• How does a shortage of bank examiners affect the industry? A shortage of examiners can delay regulatory reviews and potentially increase risks within the banking system.

What do you think will be the long-term effects of this wave of bank mergers on local communities? And how will these changes impact the availability of financial services for small businesses?

share your thoughts in the comments below and join the conversation!

What is teh projected impact of the acquisition on Huntington’s earnings per share, excluding integration costs?

Deal Details & Financial Impact

On october 27, 2025, Huntington Bancshares Incorporated (NASDAQ: HBAN) officially completed its acquisition of Cadence Bank (NYSE: CADE), a transaction valued at approximately $7.4 billion. This marks a significant expansion for Huntington, solidifying its position as a leading regional banking institution. The all-stock deal, initially announced in May 2023, has undergone regulatory approval and is now finalized.

* Transaction Value: $7.4 billion

* Deal Type: All-stock acquisition

* Acquirer: Huntington Bancshares Incorporated

* Target: Cadence Bank

* Closing Date: October 27, 2025

The acquisition is expected to be promptly accretive to Huntington’s earnings per share, excluding integration costs.Analysts predict a positive impact on Huntington’s net interest margin and efficiency ratio. The combined entity will operate under the huntington brand.

Expanded Geographic Reach & Market Position

The primary driver behind this acquisition is Huntington’s strategic ambition to broaden its national footprint. Cadence Bank’s strong presence in the Southeast and Texas complements Huntington’s existing Midwest and Mid-Atlantic markets.

Here’s a breakdown of the expanded reach:

1. Southeast Expansion: Cadence Bank brought a ample customer base and branch network across Florida, Georgia, North Carolina, South Carolina, and Tennessee.
2. Texas Growth: A key component of the deal is Cadence’s growing presence in the dynamic Texas market,a region Huntington identified as a priority for expansion.
3. Combined Footprint: The merged bank now operates over 700 branches across 15 states, serving a wider range of customers and businesses.
4. Increased Scale: The combined entity boasts approximately $202 billion in assets, placing it among the top regional banks in the U.S.

This expansion allows Huntington to tap into new growth opportunities and diversify its revenue streams, reducing reliance on any single regional economy. The move positions Huntington to better compete with larger national banks.

Synergies & Integration Plans

Huntington anticipates significant cost synergies resulting from the integration of Cadence Bank. These synergies are expected to be realized through:

* Branch Optimization: A careful review of the combined branch network will lead to strategic closures and consolidations, optimizing the branch footprint for efficiency.

* Technology Integration: Consolidating technology platforms will streamline operations and reduce IT expenses. Huntington plans a phased approach to technology integration, prioritizing a seamless customer experience.

* Back-Office Efficiencies: Combining back-office functions, such as loan processing and compliance, will generate cost savings.

* personnel Redundancies: Unluckily, some workforce reductions are anticipated due to overlapping roles. Huntington has committed to treating affected employees with fairness and providing support during the transition.

Huntington has outlined a detailed integration plan, with a focus on minimizing disruption to customers and employees. The integration is expected to take approximately 18-24 months to complete.

Impact on Customers: What to Expect

Customers of both Huntington and Cadence Bank will experience changes in the coming months.

* Brand Transition: Cadence Bank branches will be rebranded as Huntington branches over time.

* online & Mobile banking: Customers will eventually be migrated to Huntington’s online and mobile banking platforms.Huntington has pledged to provide ample notice and support during this transition.

* Product & Service Alignment: Huntington will evaluate and align the product and service offerings of both banks, potentially leading to new and enhanced options for customers.

* customer Support: Huntington is committed to maintaining high levels of customer service throughout the integration process.

Customers with questions or concerns are encouraged to contact their respective bank’s customer support channels.

Regulatory Approval & Key Stakeholders

The acquisition received approval from the Federal reserve and the Office of the Comptroller of the Currency (OCC), demonstrating confidence in Huntington’s ability to successfully integrate Cadence Bank and maintain a strong financial position.

Key stakeholders involved in the deal included:

* Huntington Bancshares Incorporated: The acquiring company.

* Cadence Bank: The acquired company.

* Federal Reserve: Regulatory body overseeing the banking system.

* Office of the Comptroller of the Currency (OCC): federal agency responsible for supervising national banks.

* Goldman Sachs & Co. LLC: Financial advisor to Huntington.

* Piper Sandler: Financial advisor to Cadence Bank.

Future Outlook & Strategic Implications

this acquisition represents a bold move by huntington to accelerate its growth and enhance its competitive position in the evolving banking landscape. The expanded footprint, coupled with anticipated synergies, positions Huntington for long-term success. The bank is now better equipped to serve a broader customer base and capitalize on opportunities in key growth markets. Industry analysts will be closely watching Huntington’s integration efforts and its ability to deliver on its projected financial benefits. The success of this deal will likely influence future consolidation activity within the regional banking sector.