In a significant move to strengthen its market position, Huntington Bancshares Incorporated, a Maryland corporation, has entered into a merger agreement with Cadence Bank, a Mississippi state-chartered bank. This strategic transaction, finalized on October 26, 2025, will see Cadence Bank merging with and into The Huntington National Bank, a wholly-owned subsidiary of Huntington, with Huntington National Bank as the surviving entity. Following the merger, Huntington National Bank will continue to operate under its established brand, thereby enhancing Huntington's footprint across 21 states and increasing its presence in key metropolitan areas.
The financial terms of the merger indicate that shareholders of Cadence will receive 2.475 shares of Huntington common stock for each share of Cadence they own, translating to a value of approximately $39.77 based on the closing price of Huntington stock on October 24, 2025. More recently, on November 28, 2025, the exchange ratio reflected a value of approximately $40.34 per share of Cadence common stock, showcasing the potential for value appreciation as the deal progresses. In total, Huntington expects to issue about 461 million shares to Cadence shareholders as part of this merger.
Strategically, this merger is poised to create a combined entity with a robust commitment to customer service and community development. Huntington aims to leverage the merger to deepen its investments in the communities it serves while improving customer experiences through enhanced service offerings. With a strong emphasis on purpose-driven banking, Huntington anticipates that the merger will yield significant benefits for its stakeholders, including employees and shareholders, by providing a more competitive platform in the banking sector.
The merger is set to proceed with special shareholder meetings scheduled for January 6, 2026, where both Huntington and Cadence shareholders will vote on the proposals central to the merger. The meeting for Huntington shareholders is scheduled for 11:00 a.m. Eastern Time, while the Cadence meeting will take place at 9:00 a.m. Central Time. Approval from both sets of shareholders is crucial for the merger to be finalized, and the boards of both companies have unanimously recommended that shareholders vote in favor of the merger proposals.
Regulatory approval will also be a necessary step before the merger can close, with Huntington indicating that the transaction is intended to qualify as a "reorganization" for U.S. federal income tax purposes. Consequently, shareholders of Cadence can expect not to recognize any gain or loss for tax purposes on the exchange of their shares in this merger.
As the merger moves forward, it is expected to have notable impacts on both companies' shareholders, with former Cadence shareholders projected to own approximately 23% of the combined entity while Huntington shareholders will retain about 77%. The anticipated closing of the merger will depend on the successful completion of the necessary shareholder votes and regulatory approvals, paving the way for a new chapter in the evolution of both banks.