Huntington Bancshares Acquires Veritex Holdings for $1.9 Billion to Expand Texas Footprint

Huntington Bancshares, a regional bank holding company based in Columbus, Ohio, has announced a strategic acquisition of Veritex Holdings, the parent company of Veritex Community Bank, for $1.9 billion in an all-stock deal. The transaction is expected to close in early Q4 2025. As of March 31, Veritex had approximately $13 billion in assets, $9 billion in loans, and $11 billion in deposits. This acquisition is set to significantly boost Huntington's footprint in Texas, particularly in the Dallas-Fort Worth and Houston markets, which are identified as tremendous growth markets.

Zachary Wasserman, CFO of Huntington, highlighted that the acquisition is not just about expanding commercial lending but also about bringing Huntington’s full suite of services in treasury management, wealth, and capital markets to Veritex customers. He emphasized that the deal will serve as a springboard for growth, allowing Huntington to offer its branch banking and consumer digital offerings, including mortgage products, to these markets. Wasserman described the acquisition as a strategic move that aligns with Huntington's mission and culture, which he believes is essential for a successful integration.

Wasserman noted that while organic growth remains a top priority, strategic acquisitions can accelerate growth, especially in markets with strong economic potential. He pointed out that Texas is now Huntington's third-largest state, and this deal positions the bank for significant expansion. The integration process is already underway, with the Huntington executive team visiting Dallas-Fort Worth and Houston to meet new colleagues and begin integration planning.

Huntington reported net income of $536 million for the second quarter, with earnings per share of $0.34, an increase of $0.04 year over year. The bank saw 12% growth in net interest income and a 3% increase from the previous quarter, driven by 8% total loan growth year over year, with 10% growth in commercial loans, and a net interest margin (NIM) expansion to 3.11% from 3% in the previous year. Wasserman attributed most of the NIM expansion to optimized funding costs as rates have declined over the past year.

As the second quarter progressed, client uncertainty faded, with tariff prospects improving, capital markets stabilizing, and equity markets rebounding. The economy continues to grow, prompting commercial clients to invest in their businesses, while consumers remain resilient. For the remainder of the year, Huntington’s strategy focuses on growing its fee-based businesses, including wealth management, payments, and capital markets. Wasserman acknowledged that the biggest risk continues to be the macro economy and geopolitical environment, but indicated that what they are seeing on the ground suggests a strong second half of the year.