Huntington Bancshares (Nasdaq: HBAN) is on the verge of completing its transformative $7.4 billion acquisition of Cadence Bank (NYSE: CADE), a move that signals a decisive shift in the U.S. regional banking landscape. Announced in late 2025 and slated to close on February 1, 2026, the all-stock transaction represents the largest bank merger since the industry’s "Material Reset" of regulatory policies. By absorbing Cadence, Huntington is effectively trading its reputation as a Rust Belt lender for a seat at the table of Southern growth powerhouses.
The deal, which received final shareholder approval on January 6, 2026, will create a combined entity with approximately $276 billion in assets and $220 billion in deposits. This scale catapults the new Huntington into the top 10 of U.S. regional banks, providing it with the balance sheet necessary to compete with global systemically important banks (G-SIBs) while capturing the economic tailwinds of the "Sunbelt" migration.
The Path to a New Regional Giant
The acquisition journey began on October 27, 2025, when Huntington Bancshares and Cadence Bank jointly announced a definitive merger agreement. Under the terms of the deal, Cadence shareholders are set to receive 2.475 shares of Huntington stock for each share they hold, valuing the transaction at approximately $39.77 per share at the time of the announcement. This structure was designed to allow Cadence investors to participate in the long-term upside of the combined company’s expanded footprint.
Leading the charge are Huntington’s Chairman and CEO Steve Steinour and Cadence CEO James D. "Dan" Rollins III. While Steinour will continue to lead the combined organization, Rollins is slated to transition to a Non-Executive Vice Chairman role on the Huntington board. The timeline for the merger has been notably swift compared to the protracted approval processes of 2023 and 2024. Following the December 2025 green light from both the Office of the Comptroller of the Currency (OCC) and the Federal Reserve, the companies are now in the final 15-day "waiting period" before the legal close.
Initial market reactions were cautiously optimistic, as analysts highlighted the lack of geographic overlap between the two firms. Huntington’s traditional stronghold in Ohio, Michigan, and Pennsylvania will now be complemented by Cadence’s robust presence in Texas, Mississippi, Georgia, and Tennessee. Unlike many mergers of this scale, Huntington has pledged not to close Cadence branches, focusing instead on "revenue synergies" and the cross-selling of its sophisticated insurance and wealth management products into Cadence's commercial client base.
Winners, Losers, and the Scale Race
The primary winners in this transaction appear to be Huntington’s long-term shareholders, who gain immediate exposure to high-growth markets like Houston, Dallas, Atlanta, and Nashville without the typical execution risks of a "hostile" takeover. By moving into these markets, Huntington (Nasdaq: HBAN) is insulating its portfolio against the slower demographic growth of the Midwest. Cadence (NYSE: CADE) shareholders also stand to benefit from the higher dividend yield and superior technology platform that Huntington brings to the table.
Conversely, mid-sized competitors in the South, such as Regions Financial Corporation (NYSE: RF) and Synovus Financial Corp. (NYSE: SNV), may find themselves at a disadvantage. These institutions now face a competitor with a much larger lending limit and a more diverse product suite. Small community banks in the Sunbelt may also feel the squeeze as Huntington’s "Fair Play" banking philosophy—which includes reduced overdraft fees and consumer-friendly digital tools—forces them to upgrade their own service models or risk losing deposits.
However, the "losers" could potentially include internal teams facing the inevitable integration friction. While Huntington has promised no branch closures, the consolidation of back-office operations and technology stacks is a massive undertaking. Banks that fail to execute a seamless digital transition often see a temporary dip in customer satisfaction, providing a narrow window for rivals like Fifth Third Bancorp (Nasdaq: FITB) to poach disgruntled commercial clients during the rebranding phase scheduled for the second quarter of 2026.
A New Era of Regulatory Pragmatism
This merger serves as a bellwether for the "Material Reset" in U.S. banking regulation. In 2025, federal agencies began rolling back the restrictive M&A policies of the previous year. The FDIC's decision in May 2025 to reinstate the more business-friendly 1998 Merger Policy Statement was a turning point, effectively signaling that the government would no longer block mergers simply for being "too large," provided they did not create systemic risk.
The Huntington-Cadence deal illustrates the emergence of a "barbell" industry structure. Regulators now appear to favor the creation of strong, regional "super-minors" that can act as a counterweight to the dominance of JPMorgan Chase & Co. (NYSE: JPM) and Bank of America (NYSE: BAC). This shift in policy emphasizes financial stability and competitive resilience over traditional antitrust concerns focused solely on branch density. By allowing mid-tier banks to consolidate, the government is essentially fostering a more stable middle class of banks that can survive economic shocks without federal intervention.
Historically, this deal mirrors the 2019 merger of BB&T and SunTrust to form Truist. However, the 2026 version is occurring in an environment where digital agility is more important than physical branch counts. The DOJ's current focus on competition from fintech and non-bank lenders has cleared a path for traditional banks to merge and pool their R&D budgets to keep pace with Silicon Valley.
What Lies Ahead: Integration and the M&A Domino Effect
In the short term, Huntington must navigate the legal closing on February 1 and the subsequent system conversion in the second quarter. The primary challenge will be retaining the "local" feel of Cadence Bank—a brand with deep roots in Mississippi and Texas—while introducing the Huntington nameplate. Success will be measured by deposit retention and the ability to roll out Huntington’s commercial lending products to Cadence’s existing middle-market clients.
Longer-term, this acquisition is expected to trigger a second wave of regional bank consolidation. With Huntington having set the precedent for a cross-regional "North-South" merger, other Midwest players like KeyCorp (NYSE: KEY) or M&T Bank Corporation (NYSE: MTB) may look toward the Southeast or Southwest for their next growth spurt. The "Goldilocks" regulatory environment of early 2026 provides a narrow but lucrative window for such transformative deals before any potential policy shifts in the 2026 midterm elections.
Investors should watch for the first combined earnings report in mid-2026. The key metrics will be the 10% EPS accretion Huntington has promised and the efficiency ratio of the combined firm. If Huntington can prove that it can manage a multi-region footprint without a significant spike in overhead, it will likely become the blueprint for the next decade of American banking consolidation.
Final Assessment: A Landmark Shift
The Huntington-Cadence merger is more than just a corporate transaction; it is a manifestation of the evolving American economy and the regulatory frameworks that govern it. As the population continues to drift toward the Sunbelt, the financial infrastructure is following suit. Huntington’s bold $7.4 billion bet secures its future as a national-scale player, moving beyond its regional constraints.
Moving forward, the market should expect a leaner, more aggressive Huntington Bancshares. The favorable regulatory environment has provided the spark, but the long-term success of the deal will depend on execution. For investors, the takeaway is clear: the era of the "regional specialist" is ending, replaced by the rise of the "super-regional" powerhouse. Watch for integration milestones in April and May 2026 to see if this marriage of the North and South truly delivers the synergies promised.
This content is intended for informational purposes only and is not financial advice.
Status Update: As of January 16, 2026, both companies are finalized in their preparations for the February 1 legal closing. Trading of CADE stock is expected to cease following the market close on January 30, 2026.
