Banking giant Huntington Bancshares to acquire Veritex in a significant $1.9 billion transaction.
In a significant move, Huntington Bancshares, a regional bank based in Columbus, Ohio, has agreed to merge with Veritex Holdings, headquartered in Dallas, Texas. The merger, valued at approximately $1.9 billion, is set to enhance Huntington's presence in the dynamic Texas economy, particularly in the Dallas-Fort Worth and Houston markets.
The all-stock transaction, which involves Huntington issuing 1.95 shares for each outstanding share of Veritex, is expected to close in the fourth quarter of 2025, pending standard regulatory approvals. As of March 31, 2025, Veritex reported approximately $13 billion in assets.
The merger aims to boost Huntington's growth in Texas, with the partnership between the two banks expected to bring more capabilities to Texas clients. Veritex operates over 30 branches in Texas, employing around 200 staff. The bank is known for its deep local relationships and strong commercial banking franchise.
Steve Steinour, Chairman, President, and CEO of Huntington Bancshares, expressed the merger's support of their long-term commitment to the state of Texas. Malcolm Holland, Chairman, President, and CEO of Veritex, expressed excitement about becoming part of the Huntington family and expanding capabilities for Texas clients. Holland will join Huntington in a non-executive capacity as Chairman of Texas, focusing on local customer and community engagement.
The deal is expected to be modestly accretive to Huntington's earnings per share, indicating the transaction should enhance profitability per share after integration costs. It is projected to be neutral to regulatory capital, meaning no significant immediate dilution or enhancement to the bank's capital ratios. The transaction will be slightly dilutive to tangible book value per share, reflecting some initial reduction in hard net asset value per share.
Huntington has been a top SBA 7(a) lender in Texas since 2009 and was the top in 2024. The merger is seen as a springboard for substantial future growth in Texas by Huntington. The merger also reinforces the continuation of Veritex's impressive legacy and a means to continue being a reliable partner supporting customers and communities in Texas.
As part of the deal, Huntington is dedicating $10 million toward philanthropic investments in Texas. The merger is a testament to Huntington's commitment to the state and its people, and a strategic move to strengthen its position in the Texas market.
The merger between Huntington Bancshares and Veritex Holdings will bolster Huntington's growth in the finance sector, particularly in the Texas economy, where Veritex operates over 30 branches and has a strong commercial banking franchise in the business industry. The partnership is expected to bring more capabilities to Texas clients in banking and insurance, support their long-term commitment to the state, and contribute to philanthropic investments within the region.
