Huntington Bancshares Gains Regulatory Approval for Veritex Acquisition

Regulatory Approvals Granted for Huntington-Veritex Merger

On October 3, 2025, Huntington Bancshares Incorporated (NASDAQ: HBAN) and Veritex Holdings, Inc. jointly announced the receipt of all required regulatory approvals for their proposed merger. The Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency have sanctioned the transaction, which includes the merger of Veritex with and into Huntington, and Veritex Community Bank into The Huntington National Bank. The Department of Justice also concluded its review, finding no potential risks to competition. This crucial development paves the way for the transaction's expected completion on October 20, 2025, subject to customary closing conditions.

Merger Details and Strategic Rationale

The acquisition, valued at approximately $1.9 billion, is structured as an all-stock transaction where Huntington will issue 1.95 shares for each outstanding share of Veritex. This implies a consideration of $33.91 per Veritex share based on Huntington's closing price as of July 11, 2025. From a strategic perspective, the merger represents a significant step for Huntington Bancshares to expand its footprint in the robust Texas banking market, particularly within the Dallas-Fort Worth metroplex and Houston metropolitan area. As of March 31, 2025, Veritex reported approximately $13 billion in assets, $9 billion in loans, and $11 billion in deposits, which will substantially augment Huntington's existing operations. This geographic diversification aims to reduce HBAN's concentration in the Midwest and capitalize on Texas's strong economic fundamentals.

Financial Performance and Market Reception

Huntington Bancshares, a regional bank holding company with $208 billion in assets and a market capitalization of $24.86 billion, has demonstrated consistent financial performance. For the second quarter of 2025, the bank reported a net income of $536 million, translating to $0.34 EPS, with net interest income increasing 12% year-over-year to $155 million. Robust loan and deposit growth were also noted, with average total loans increasing 8% year-over-year to $133.2 billion and average deposits growing 6% year-over-year to $9.9 billion. Credit quality remains strong, evidenced by a net charge-off rate of 0.20% and a healthy Common Equity Tier 1 (CET1) ratio of 10.5%.

The regulatory approval has been met with a largely bullish market sentiment for HBAN. Shares of Huntington Bancshares have advanced approximately 21% over the past year. Analysts project approximately 10% upside potential to a fair value of $19, complemented by a 3.6% dividend yield. The transaction is anticipated to be modestly accretive to Huntington's earnings per share within one year and neutral to regulatory capital at closing.

Analyst Perspectives and Future Outlook

Leading analysts have reiterated positive outlooks for Huntington Bancshares. Wolfe Research recently upgraded HBAN from "peer perform" to "outperform," setting a price target of $21.00. The consensus rating for HBAN is "Moderate Buy," with an average target price of $19.24. Analysts emphasize the bank's disciplined underwriting, solid capital ratios, and effective risk management as key drivers for continued outperformance.

"Credit continues to perform well, demonstrated by improved net-charge offs and stable levels of criticized and non-performing assets. This is evidence of our disciplined credit risk management and client selection," stated Huntington's management, highlighting their focus on asset quality.

Looking ahead, the successful integration of Veritex is paramount. The acquisition is expected to deepen HBAN's market penetration in Texas, competing against established regional players like Comerica and Frost Bank, as well as larger national entities. The strategic focus on technology investments and geographic diversification aims to leverage the state's dynamic economy and rapidly growing population. Investors will be closely monitoring the integration process and its impact on HBAN's financial metrics in the coming quarters.