Cadence Bank (CADE) shares are soaring 5.37% in pre-market trading on Monday following the announcement of a $7.4 billion acquisition deal by Huntington Bancshares (HBAN). This significant move comes as regional banks continue to consolidate to compete with larger financial institutions.
Under the terms of the all-stock agreement, Huntington will issue 2.475 shares of its common stock for each outstanding share of Cadence. Based on Huntington's closing price last Friday, this values Cadence at $39.77 per share, representing a premium to its previous closing price. The deal is expected to close in the first quarter of 2026, subject to regulatory approvals and other customary closing conditions.
This strategic acquisition will significantly expand Huntington's footprint, creating a top-ten bank with combined assets of $276 billion and deposits of $220 billion. The merger will extend Huntington's reach to 21 states, stretching from the Midwest to the South and into Texas, giving it access to high-growth markets. Huntington CEO Steve Steinour emphasized the importance of this expansion, stating, "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."
The deal is expected to be 10% accretive to Huntington's earnings per share, with the bank raising its medium-term performance targets as a result. Huntington now anticipates a return on tangible common equity (ROTCE) of 18% to 19%, up from its previous target of 16% to 17%. This improved outlook reflects the anticipated expense synergies and enhanced earnings potential from the merger.
As part of the agreement, Cadence Bank CEO James "Dan" Rollins III will join Huntington as non-executive vice chairman of the board. Additionally, Huntington will invite two more members from Cadence to join its board of directors, ensuring continuity and integration of expertise from both institutions.
This acquisition is part of a broader trend of consolidation in the banking sector, as regional lenders seek to grow their footprint and compete more effectively with larger banks. The deal highlights the ongoing transformation of the U.S. banking landscape and the strategic moves being made by mid-sized banks to enhance their market position and operational efficiency.
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