Huntington Bank Receives Regulatory Approval for $7.4 Billion Cadence Bank Acquisition
Huntington Bank’s $7.4 billion acquisition of Cadence Bank has been granted approval by the Office of the Comptroller of the Currency, marking a significant milestone for the Columbus, Ohio-based lender. The news was disclosed on Monday, bringing the transaction one step closer to completion.
The approval from the OCC represents the final regulatory green light required for the acquisition to proceed. According to Huntington, the deal is expected to close on February 1, aligning with the bank’s initial projection of completing the merger in the first quarter of 2026, with system conversion to follow in the second quarter.
Swift Regulatory Process Sets Huntington-Cadence Deal Apart
The OCC’s swift approval of Huntington’s acquisition of Cadence is notable, as it comes just 56 days after the deal was announced. This rapid regulatory turnaround is particularly remarkable in the context of recent banking mergers, where approval timelines have varied.
Comparatively, PNC’s $4.1 billion acquisition of Colorado’s FirstBank received approval from the Federal Reserve 94 days after the deal was announced, while the $8.6 billion merger between Pinnacle and Synovus was approved by the Fed after 124 days. The expedited approval process for Huntington’s acquisition of Cadence highlights the efficiency of the regulatory evaluation under the current administration.
Strategic Expansion and Market Share Growth
Upon completion of the acquisition, Huntington Bank will become a $276 billion-asset institution, significantly expanding its presence across 21 states. The merger will also position Huntington as the fifth-largest deposit market share holder in Dallas, as well as ranking fifth in Houston and eighth in Texas overall.
Notably, Cadence Bank, with headquarters in Tupelo, Mississippi, and Houston, will be the second Texas-based bank acquired by Huntington in recent months. This follows the bank’s $1.9 billion acquisition of Veritex Community Bank in July, further solidifying its footprint in the region.
Continued Growth and Expansion
For Cadence Bank, the acquisition by Huntington marks a culmination of a series of strategic moves. Prior to the merger agreement with Huntington, Cadence had acquired Industry Bancshares, the holding company of six Texas community banks, in a deal announced in April. The acquisition will bring Huntington an additional $53 billion in assets, 390 branches, and 1 million customers across multiple states.
The completion of the Huntington-Cadence merger underscores a successful year for both institutions, setting the stage for continued growth and expansion in the banking sector.
Contrasting Regulatory Environments
The relatively rapid regulatory approval process for the Huntington-Cadence deal stands in contrast to the lengthier timelines seen in other recent banking mergers. Under the Biden administration, deals such as Columbia Banking System’s $5.2 billion merger with Umpqua Bank took over 16 months to finalize, highlighting the differences in regulatory oversight between administrations.
Furthermore, the Capital One’s $35.3 billion acquisition of Discover, proposed during the Biden administration but closed with Trump-era oversight, underwent a 14-month regulatory review process. The variance in approval timelines underscores the evolving landscape of banking mergers and acquisitions under different regulatory environments.
