Shares of Cadence Bank jumped more than 3.3% in premarket trading on Monday after Huntington Bancshares agreed to acquire the Houston and Tupelo-based regional lender in an all-stock deal valued at $7.4 billion.
The deal marks another sign of accelerating consolidation among US regional banks as they seek to expand their geographic reach and better compete with larger rivals.
The acquisition values Cadence at $39.77 per share, a roughly 9% premium to its last closing price, and is expected to close in the first quarter of 2026, subject to regulatory approvals.
A top-ten US bank emerges
Huntington said the merger will create a top-ten US bank with $276 billion in assets, $220 billion in deposits, and $184 billion in loans and leases.
Under the agreement, Huntington will issue 2.475 shares for each Cadence common share.
The deal will extend Huntington’s footprint to 21 states, stretching from the Midwest through the South and into Texas, one of the fastest-growing banking markets in the country.
With more than 390 Cadence locations across Texas and the southern United States, the combined entity will have a significant presence in key regions.
Upon completion, Huntington will rank fifth by deposits in both Dallas and Houston, and will become the top bank in Mississippi and a top-ten bank in Alabama and Arkansas.
“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,” said Huntington CEO Steve Steinour.
Expansion in high-growth markets
The acquisition strengthens Huntington’s position in fast-growing metropolitan areas, including Houston, Dallas, Fort Worth, Austin, Atlanta, Nashville, Orlando, and Tampa.
In total, the combined bank will have a strategic presence in 12 of the top 25 US metropolitan areas, including six of the ten fastest-growing regions.
Huntington said it expects to achieve cost synergies and enhanced profitability from the deal, raising its medium-term return on tangible common equity (ROTCE) target to 18–19%, up from its previous goal of 16–17%.
ROTCE is a key profitability metric that measures how efficiently a bank uses its core capital to generate shareholder returns.
Analysts welcomed the move, noting it aligns with Huntington’s expansion strategy in the Southeast and Texas.
“Huntington has been on the path to expanding in Texas and the Southeast and we believe this acquisition fits nicely into that expansion strategy,” analysts at RBC Capital Markets wrote in a note.
Consolidation wave among regional lenders
The deal comes amid a broader wave of bank mergers as regional lenders look to diversify revenue streams and strengthen balance sheets.
The Trump administration’s efforts to simplify and expedite merger approvals have also supported dealmaking in the sector.
Earlier this month, Fifth Third Bancorp announced it would acquire Comerica in a $10.9 billion transaction—the largest US bank merger so far this year.
Evercore and BofA Securities served as financial advisors to Huntington, while Keefe, Bruyette & Woods advised Cadence Bank.
If approved, the Huntington-Cadence merger will reshape the regional banking landscape, creating a new powerhouse stretching from the Midwest to the Gulf Coast and marking one of the largest regional bank combinations in recent years.
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