Huntington Secures OCC Regulatory Green Light for Cadence Merger

Huntington Bancshares Incorporated HBAN has received approval from the Office of the Comptroller of the Currency (OCC) to complete its previously announced merger of Cadence Bank CADE.

With this clearance, all required regulatory approvals for the transaction have now been obtained. The companies expect the merger to close on Feb. 1, 2026, subject to shareholder approvals and the satisfaction or waiver of remaining customary closing conditions outlined in the merger agreement.

Terms & Financial Details of the HBAN Deal

Huntington announced its agreement to acquire Cadence Bank in October 2025 through a 100% stock transaction valued at approximately $7.4 billion. Per agreement, HBAN will issue 2.475 shares of common stock for each outstanding share of CADE common stock.

The deal is expected to be 10% accretive to Huntington’s earnings per share. It is projected to be modestly dilutive to regulatory capital at closing and 7% dilutive to tangible book value per share, with the dilution expected to be earned back within three years, inclusive of merger-related expenses.

Following the closing, Cadence’s teams, branches, and operations are expected to transition to the Huntington brand, with system conversions anticipated in the second quarter of 2026.

Rationale Behind HBAN-Cadence Deal

The merger adds more than 390 Cadence branches across the South and positions the combined bank as the fifth-largest by deposit market share in both Dallas and Houston, while ranking eighth statewide in Texas. Huntington is also expected to enter the top 10 banks by deposits in Alabama and Arkansas, further strengthening HBAN’s competitive positioning in these fast-growing regions.

The acquisition significantly expands Huntington’s geographic reach beyond its Midwest stronghold, providing immediate scale in Texas and other southern states. Following completion, the combined institution will operate across 21 states and maintain a presence in 12 of the 25 largest U.S. metropolitan areas.

Huntington’s Broader Inorganic Expansion Strategy

Huntington has strategically broadened its footprint and capabilities through a series of acquisitions over the past several years. In November 2025, the company agreed to acquire select advisory, public finance, and fixed-income trading units from Janney Montgomery Scott LLC, a financial services firm majority-owned by KKR & Co. Inc. KKR. The planned acquisition will enhance HBAN’s advisory and capital markets capabilities, while expanding its reach with institutional and public-sector clients.

Earlier, in October 2025, Huntington completed the acquisition of Veritex Holdings, Inc., expanding its presence across the Dallas/Fort Worth and Houston markets and accelerating its organic growth in Texas.

In 2022, it acquired Capstone Partners, enhancing its investment banking capabilities. Earlier, the transformational 2021 merger with TCF Financial significantly expanded Huntington’s regional footprint, improved operating efficiency and created new cross-selling opportunities across its growing customer base.

Huntington’s series of disciplined, strategically aligned acquisitions demonstrates a long-term growth strategy centered on scale, market expansion and enhanced capabilities. With each deal, the company has broadened its geographic footprint, strengthened competitive positioning and created opportunities for cost efficiencies and revenue acceleration. 

HBAN’s Price Performance & Zacks Rank

Over the six months, shares of Huntington have risen 10.2% compared with the industry’s growth of 7.9%.

Image Source: Zacks Investment Research

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

A Finance Firm Taking Similar Steps

Last week,The PNC Financial Services Group, Inc. PNC secured the regulatory approvals needed to complete its previously announced $4.1 billion cash-and-stock acquisition of FirstBank Holding Company, including its banking subsidiary, FirstBank. This marks a key milestone toward closing the transaction. Approvals were granted by the Board of Governors of the Federal Reserve System, the OCC, and the Colorado Division of Banking.

The FirstBank acquisition aligns with PNC’s long-term strategy of investing in high-growth regions and leveraging its national platform to drive organic growth. Over the past decade, it has focused on expanding through a combination of technology investment, disciplined capital deployment, and selective acquisitions to strengthen its presence in attractive markets.

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

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