Huntington Bancshares Launches Major Southern Expansion with $7.4B Cadence Bank Acquisition

In a strategic move reshaping the U.S. regional banking landscape, Huntington Bancshares has unveiled plans to acquire Cadence Bank in an all-stock transaction valued at $7.4 billion. The announcement coincides with the institution's decision to lower its prime lending rate to 7.00 percent, signaling a dual-pronged approach to strengthening its market position.

The acquisition represents Huntington's decisive entry into key southern U.S. markets. Through this transaction, the bank aims to establish market leadership in Mississippi while securing top-10 banking positions in both Alabama and Arkansas. The deal will add more than 390 branch locations to Huntington's network, including critical markets such as Houston, Dallas, Atlanta, and Nashville.

Pending shareholder approval, the transaction is expected to finalize during the first quarter of 2026. In a demonstration of the combined entity's integration strategy, Cadence Bank's current CEO, James D. Rollins III, will transition to Huntington's board as a non-executive vice chairman.

Should investors sell immediately? Or is it worth buying Bancshares?

Interest Rate Adjustment Reflects Broader Strategy

Concurrent with the landmark acquisition news, Huntington has implemented its second prime rate reduction in recent weeks, decreasing from 7.25 percent to 7.00 percent. This follows September's reduction from 7.50 percent to 7.25 percent. The consecutive adjustments indicate several strategic priorities:

• Alignment with evolving macroeconomic conditions
• Active management of the institution's credit portfolio
• Enhanced competitiveness across both consumer and commercial banking segments

Banking Sector Consolidation Accelerates

Huntington's move occurs amid intensified consolidation activity within the banking industry. This transaction follows last month's announcement that PNC Financial would acquire FirstBank in a $4.1 billion deal, while Eastern Bankshares recently completed its merger with HarborOne. The pattern underscores the sector's prevailing dynamics: institutions must pursue growth through strategic combinations to maintain relevance in an increasingly competitive environment.

The successful integration of TCF in 2021 provides some indication of Huntington's capability to manage large-scale acquisitions. However, the Cadence transaction presents substantially greater scale and complexity. Market observers will closely monitor coming quarterly results to determine whether the multi-billion dollar investment delivers the anticipated operational synergies and market advantages.