Huntington to Acquire Key Units From KKR-Owned Janney Scott

Huntington Bancshares HBAN has agreed to acquire several business units of Janney Montgomery Scott LLC, a financial services firm majority-owned by KKR & Co. Inc. KKR, as part of a push to expand its capital markets operations, according to a Bloomberg News report published on MSN. 

Under the terms of the deal, Huntington will purchase Janney’s merger and acquisition advisory, public finance, and fixed-income sales and trading units. These businesses will be integrated into Huntington’s subsidiaries, including Capstone Partners, its investment banking advisory arm, and Huntington Securities, which focuses on capital markets and trading services.

Financial details of the transaction were kept under wraps.

Rationale Behind HBAN Acquisition Deal

The planned acquisition will enhance HBAN’s advisory and capital markets capabilities, while expanding its reach with institutional and public-sector clients. The move marks a significant step in its long-term strategy to diversify revenue sources beyond traditional lending and deposit services.

By integrating Janney’s advisory and trading teams, Huntington aims to strengthen its relationships with corporate and public-sector clients, while generating more fee-based income, a key priority amid margin pressures facing U.S. regional banks.

The deal underscores a broader trend among regional lenders seeking to reduce their dependence on interest income, especially as fluctuating interest rates and rising funding costs weigh on profitability. Capital markets and advisory businesses, while cyclical, offer opportunities for higher returns and long-term client relationships.

HBAN’s Prior Inorganic Expansion Efforts

Earlier this month, HBAN has entered a definitive agreement to acquire Cadence Bank, a regional financial institution with $53 billion in assets headquartered in Houston, TX, and Tupelo, MS. The deal expands Huntington’s footprint across several high-growth markets, including Houston, Dallas, Fort Worth, Austin, Atlanta, Nashville, Orlando and Tampa, providing a strong foundation for organic investment and long-term growth. Following completion, Huntington will have a footprint in 12 of the 25 largest U.S. metropolitan areas, including six of the 10 fastest-growing regions.

The company also completed the acquisition of Veritex Holdings, Inc. in October 2025, strengthening its presence in Texas by expanding across Dallas/Fort Worth and Houston. In March 2024, HBAN announced plans to expand its commercial banking business in Texas, following its footprint extension in the Dallas-Fort Worth area in early 2024.

As part of its ongoing geographic and vertical expansion, the company broadened its middle-market banking presence in Texas. In January 2025, Huntington introduced two verticals — the Financial Institutions Group and the Aerospace & Defense Group — as part of its ongoing geographic and vertical expansion. Both verticals offer advisory services and corporate banking solutions, including liquidity and treasury management, capital markets, and corporate finance.

These efforts are expected to broaden HBAN’s market presence and attract customers from across the region.

HBAN Price Performance & Zacks Rank

Over the past six months, shares of Huntington have risen 0.3% against the industry’s decline of 0.9%. 

Price Performance

HBAN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Finance Firms Taking Similar Steps

Earlier this month, Fifth Third Bancorp FITB entered a definitive merger agreement to acquire Comerica Incorporated CMA in an all-stock transaction valued at $10.9 billion. The transaction is projected to close at the end of the first quarter of 2026.

The impending acquisition serves as a strategic acceleration of FITB’s long-term growth plan, enhancing scale, profitability and geographic reach. By integrating Fifth Third’s retail and digital banking platforms with CMA’s strong middle-market expertise and attractive regional footprint, the merger enhances Fifth Third’s presence across high-growth markets.

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This article originally published on Zacks Investment Research (zacks.com).

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