Huntington's $1.9B Veritex Takeover Gets Green Light From Federal Reserve
Final regulatory hurdle cleared for the all-stock transaction, paving the way for an October 20 closing and a major expansion into Texas.
Huntington Bancshares Inc. (HBAN) has officially received the final regulatory approvals required to complete its planned $1.9 billion acquisition of Veritex Holdings Inc. (VBTX), a significant move that will expand the Ohio-based bank's footprint into the lucrative Texas market.
The , the last major hurdle for the all-stock deal. This follows clearance from the Office of the Comptroller of the Currency and an earlier approval from Veritex shareholders in September, setting the stage for the transaction to close on October 20, 2025.
The deal, first announced in July, will see Veritex shareholders receive 1.95 shares of Huntington common stock for each Veritex share they own. The acquisition allows Huntington, a regional bank with approximately $208 billion in assets, to absorb Dallas-based Veritex and its $12.5 billion in assets, establishing a strong presence in the rapidly growing Dallas/Fort Worth and Houston metropolitan areas.
Market reaction to the initial announcement was positive for the target company, with Veritex shares surging over 20% as the deal represented a significant premium. Following the news of the final regulatory approval, Huntington's stock saw a modest 1% increase in late trading. Analysts have generally viewed the merger favorably, with and likely to be modestly accretive to Huntington's earnings per share by 2026.
The strategic rationale for Huntington is clear: accelerating its entry and market share growth in Texas. According to credit rating agency and its credit ratings remain unaffected. The combined entity is projected to have total assets of around $220.3 billion, making it the 20th largest insured depository institution in the United States.
Upon completion, Veritex Community Bank will merge into The Huntington National Bank, with its branches operating under the Huntington brand. Veritex's Chairman and CEO, Malcolm Holland, is expected to join Huntington in a non-executive capacity as Chairman of Texas, guiding the bank's expansion efforts in the state. Huntington has also committed an initial $10 million in philanthropic investments across Texas to support its new communities.