Peter Smith
● Huntington Bancshares (NASDAQ: HBAN) is acquiring Cadence Bank (NYSE: CADE) in an all-stock deal worth $7.4 billion. The merger will create one of the biggest regional banks in the country, with roughly $276 billion in combined assets and branches spanning from the Midwest all the way to Texas—a major expansion into the South for Huntington.
● Cadence shareholders will get 2.475 Huntington shares for every share they own. The deal should wrap up in early 2026 and is designed to boost both banks' positions in retail and commercial lending. But analysts are flagging some risks: potential branch closures, duplicate operations, and the headache of merging two different tech systems. Plus, regulators might take a hard look at this one, especially after the banking turmoil we saw recently.
● This isn't Huntington's first rodeo—they recently bought Veritex, showing they're betting on growth through acquisitions rather than building from scratch. While the deal should save costs and improve capital efficiency, some experts think there might be smarter ways to create shareholder value without taking on the risks of a massive merger—like tweaking tax strategies or optimizing capital.
● The market's reaction was split: Cadence stock popped on the news, while Huntington shares dipped a bit as investors worried about near-term dilution and integration expenses.
● This deal is part of a bigger trend of regional banks joining forces to compete with the big Wall Street players and handle rising costs for compliance and technology. The merger should create jobs in finance and operations locally and could bump up tax revenues in the areas where both banks do business.
Peter Smith
