Huntington Bancshares Incorporated has announced its acquisition of Veritex Holdings, Inc. and provided preliminary financial results for the second quarter of 2025.
The strategic acquisition of Veritex is aimed at accelerating Huntington's organic growth in high-growth Texas markets. Veritex reported approximately $13 billion in assets, $9 billion in loans, and $11 billion in deposits as of March 31, 2025.
In terms of financial performance, Huntington reported earnings per common share (EPS) of $0.34 for the second quarter of 2025, unchanged from the prior quarter and up over 13% from the year-ago quarter. Notable items decreased earnings by $3 million, and there was a $58 million decrease in earnings from a securities repositioning.
Net interest income was $1.5 billion, representing an increase of $41 million or 3% from the prior quarter and $155 million or 12% from the year-ago quarter.
Average loans and leases stood at $133.2 billion, representing an increase of $2.3 billion, or 2% from the prior quarter and $9.8 billion, or 8% from the year-ago quarter.
Average deposits were $163.4 billion, reflecting an increase of $1.8 billion, or 1% from the prior quarter and $9.9 billion, or 6% from the year-ago quarter.
The net charge-offs of 0.20% of average total loans and leases for the quarter were 6 basis points lower than the prior quarter.
The tangible book value per share was reported at $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 transaction terms involve Huntington issuing 1.95 shares for each outstanding share of Veritex in a 100% stock transaction, with a consideration implying $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.
Huntington's senior management will host a conference call to discuss the acquisition on Monday, July 14, 2025, and another call to review quarterly financial results on Friday, July 18, 2025.
Huntington Bancshares Incorporated is a $210 billion asset regional bank holding company, while Veritex Community Bank is a mid-sized community bank with total assets of approximately $13 billion. As a result of these announcements, the company's shares have moved -2.24% on the market, and are now trading at a price of $17.00. For the full picture, make sure to review HUNTINGTON BANCSHARES INC /MD/'s 8-K report.
