Huntington Bancshares (HBAN) said on Monday that it will buy Cadence Bank (CADE) in an all-stock deal worth $7.4 billion. As a result, HBAN shares are down at the time of writing while CADE shares are rallying. This move is part of a wider trend where regional banks are merging in order to grow and compete with larger banks. Interestingly, analysts say that the U.S. banking industry is still highly fragmented, and the Trump administration’s push to speed up merger approvals has helped increase deal activity.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
It is also worth noting that the deal gives Cadence shareholders 2.475 Huntington shares for each Cadence share, valuing it at $39.77 per share. The combined bank will become one of the top ten in the U.S., with $276 billion in assets, $220 billion in deposits, and $184 billion in loans and leases. Huntington CEO Steve Steinour said that the partnership will expand the firm’s reach to 21 states and includes fast-growing areas like Houston, Dallas, Fort Worth, and Austin.
Huntington also raised its performance goals following the announcement. In fact, it now expects a return on tangible common equity (ROTCE) of 18% to 19%, which is up from its earlier target of 16% to 17%. For context, ROTCE measures how well a bank uses its core capital to earn profits. RBC Capital Markets analysts said that the deal fits well with Huntington’s plan to grow in Texas and the Southeast. In addition, the deal, which was first reported by The Wall Street Journal, is expected to close in early 2026.
Is HBAN Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HBAN stock based on 11 Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average HBAN price target of $19.82 per share implies 26.1% upside potential.
