Huntington Bancshares Incorporated has announced the acquisition of Veritex Holdings, Inc., a bank holding company headquartered in Dallas, Texas. The strategic acquisition is intended to accelerate Huntington’s organic growth initiatives in high-growth Texas markets. As of March 31, 2025, Veritex reported approximately $13 billion in assets, $9 billion in loans, and $11 billion in deposits.
In terms of financial performance, Huntington Bancshares Incorporated reported second quarter 2025 financial highlights, revealing a variety of changes compared to the prior quarter and the year-ago quarter. The earnings per common share (EPS) remained unchanged at $0.34 from the prior quarter but increased over 13% from the year-ago quarter. Notable items decreased earnings by $3 million, and the quarter included a $0.04 impact to EPS resulting from a $58 million decrease in earnings from a securities repositioning.
Net interest income reached $1.5 billion, marking an increase of $41 million or 3% from the prior quarter and $155 million or 12% from the year-ago quarter. Additionally, average loans and leases saw an increase of $2.3 billion, or 2% from the prior quarter and $9.8 billion, or 8% from the year-ago quarter, reaching $133.2 billion. Average deposits also increased to $163.4 billion, up by $1.8 billion, or 1% from the prior quarter and $9.9 billion, or 6% from the year-ago quarter.
Furthermore, net charge-offs decreased to 0.20% of average total loans and leases for the quarter, which is 6 basis points lower than the prior quarter. The allowance for credit losses (ACL) stood at $2.5 billion, or 1.86% of total loans and leases, at the end of the quarter, reflecting an increase of $37 million from the prior quarter. Tangible book value per share also saw an increase, reaching $9.13, up $0.33, or 4%, from the prior quarter and $1.24, or 16%, from a year ago.
The acquisition is expected to close early in the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions. Upon conversion, Veritex teams and branches will operate under the Huntington Bank name and brand.
The terms of the agreement between Huntington and Veritex involve Huntington issuing 1.95 shares for each outstanding share of Veritex in a 100% stock transaction. The consideration implies $33.91 per Veritex share or an aggregate transaction value of $1.9 billion. The transaction is expected to be modestly accretive to Huntington’s earnings per share, neutral to regulatory capital at close, and slightly dilutive to tangible book value per share, with payback in approximately one year inclusive of merger expenses and CECL double count.
It’s worth noting that Evercore and Commerce Street Capital, LLC are serving as financial advisors to Huntington, while Wachtell, Lipton, Rosen & Katz is serving as the legal advisor. Keefe, Bruyette & Woods, a Stifel company, is serving as the financial advisor to Veritex, with Simpson Thacher & Bartlett LLP serving as the legal advisor. Today the company's shares have moved -2.24% to a price of $17.00. For more information, read the company's full 8-K submission here.
