Huntington Bancshares to acquire Veritex Holdings in $1.9B all-stock deal, expands Texas presence- In a strategic move to expand its footprint in Texas, Huntington Bancshares (NASDAQ: HBAN) has announced its plan to acquire Veritex Holdings (NASDAQ: VBTX) in a $1.9 billion all-stock deal. The agreement, disclosed on Monday, marks a significant push by the Ohio-based lender into one of the fastest-growing banking markets in the U.S. With this acquisition, Huntington will add more than 30 Veritex branches located across major Texas metros, including Dallas, Houston, and Austin—three of the most competitive banking regions in the country.
The acquisition is expected to close in early Q4 2025, pending shareholder and regulatory approval.
What’s included in the Huntington–Veritex deal?
- Transaction value: $1.9 billion
- Structure: All-stock deal
- Exchange ratio: Veritex shareholders will receive 1.05 shares of Huntington stock for each Veritex share
- Implied price: About $33.91 per share, representing a 23.5% premium to Veritex’s last closing price
What does the Huntington-Veritex deal mean for the Texas banking market?
This acquisition is more than just a merger—it’s a calculated step by Huntington Bancshares to strengthen its presence in Texas, a state known for strong population growth and a thriving business climate. Huntington CEO Steve Steinour said the deal “reflects our long-term commitment to the state of Texas,” which he called “one of the most dynamic and fastest-growing economies in the country.”
As of March 31, 2025, Veritex Holdings held about $13 billion in total assets, including $9 billion in loans and $11 billion in deposits. These will now contribute to Huntington’s already substantial balance sheet of $210 billion in assets, $130 billion in net loans, and $165 billion in total deposits. The merger allows Huntington to immediately scale its operations in the South without starting from scratch.
Why is Huntington targeting Texas?
The acquisition gives Huntington immediate scale in Texas by adding:
- Over 30 Veritex branches in Dallas–Fort Worth and Houston
- Roughly $13 billion in total assets
- $9 billion in loans and $11 billion in deposits
Texas is one of the fastest-growing banking markets in the country, and this move follows Huntington’s broader strategy to expand beyond the Midwest into high-growth regions such as the Carolinas and Texas.
How much are Veritex shareholders getting in this deal?
Under the agreement, Veritex shareholders will receive 1.95 shares of Huntington (HBAN) stock for every Veritex (VBTX) share they own. Based on HBAN’s closing price of $17.39 on July 11, this translates to $33.91 per Veritex share, which represents a 23% premium over Veritex’s last closing price of $27.46.
That premium clearly impressed investors: in Monday premarket trading, Veritex shares surged 19%, while Huntington shares dipped 1.7%, reflecting a typical market reaction to such acquisitions.
Will the acquisition impact Huntington Bancshares’ financials?
Yes—but in a balanced way. Huntington said the deal will be “modestly accretive” to its earnings per share (EPS), while also being neutral to its regulatory capital at the time of closing. While the deal is expected to be slightly dilutive to tangible book value per share, the company anticipates full payback within a year, inclusive of merger-related expenses and accounting for CECL (Current Expected Credit Loss) double-counting.
How did Huntington perform in Q2 2025?
Alongside the acquisition news, Huntington also released its preliminary Q2 2025 earnings, which aligned with Wall Street expectations. The company reported:
- EPS of $0.34, matching Q1 results and consensus estimates
- A $58 million impact from securities repositioning, or $0.04 per share
- Net interest income of $1.5 billion, up 3% quarter-over-quarter and 12% year-over-year
- Average loans and leases of $133.2 billion, rising 2% Q/Q and 8% Y/Y
- Average deposits of $163.4 billion, increasing 1% Q/Q and 6% Y/Y
- Net charge-offs at 0.20% of average total loans, down 6 basis points from Q1
- Tangible book value per share of $9.13, up 4% Q/Q and 16% Y/Y
- Allowance for credit losses at $2.5 billion, or 1.86% of total loans and leases, up $37 million from Q1
Why does this acquisition matter now?
For Huntington Bancshares, this deal is about growth—both geographic and financial. With Veritex Holdings’ strong Texas presence, Huntington enters a highly competitive but rewarding market. At the same time, the numbers suggest Huntington is maintaining a healthy balance sheet and earnings performance, making this a logical time for strategic expansion.
As of now, the transaction is still subject to regulatory approval and closing conditions, but both banks appear optimistic about the integration and benefits to shareholders.
FAQs:
Q1: What is the value of the Huntington Bancshares and Veritex Holdings deal?
The Huntington and Veritex deal is valued at $1.9 billion in an all-stock transaction.
Q2: How does this acquisition impact Huntington Bancshares’ presence in Texas?
It expands Huntington’s footprint with over 30 new Veritex branches across major Texas cities.
