Midwest Banking Giant Expands Texas Footprint with Pending Purchase of Dallas-Based Lender

Cleveland – Huntington National Bank announced on July 17, 2025, that it has entered into a definitive agreement to acquire Veritex Community Bank in an all-stock transaction valued at approximately $1.9 billion. The agreement, approved by the boards of both institutions, positions Huntington to deepen its presence in Texas—one of the fastest-growing banking markets in the United States—and to add roughly $18 billion in loans and $22 billion in deposits to its balance sheet.

Under the terms of the deal, Veritex shareholders will receive 0.6273 shares of Huntington common stock for each share of Veritex, representing an 18% premium to Veritex’s closing price on July 16. Upon closing, expected in the first quarter of 2026 subject to regulatory approval and customary closing conditions, Huntington shareholders are projected to own approximately 97% of the combined company, while Veritex shareholders will hold the remaining 3%.

Huntington’s Chief Executive Officer, Stephen Steinour, characterized the transaction as a strategic fit that enhances the bank’s diversification and growth trajectory. “Veritex’s strong commercial banking platform in Dallas–Fort Worth complements our existing footprint and provides a high-quality loan portfolio,” Steinour said. “Their experienced management team and customer-centric culture align with Huntington’s values, making this a compelling opportunity for both sets of stakeholders.”

Founded in 2010 and headquartered in Dallas, Veritex operates 72 full-service branches across Texas, with a focus on middle-market commercial lending, real estate finance, and consumer banking. Over the past five years, Veritex has achieved compound annual revenue growth of 12.5%, driven by disciplined credit underwriting and targeted expansion in suburban markets.

Veritex President and CEO David Brooks expressed optimism about the combined entity. “Joining Huntington will accelerate our ability to serve clients through expanded digital capabilities, broader product offerings, and enhanced geographic reach,” Brooks said. “Our team looks forward to collaborating under the Huntington banner while continuing to deliver the local service that Veritex customers value.”

The proposed acquisition comes as consolidation in the banking sector accelerates, driven by rising compliance costs, technological investments, and the pursuit of scale. Analysts note that regional banks, in particular, face pressure to modernize digital platforms and to grow fee income as interest margins fluctuate. By integrating Veritex, Huntington anticipates over $100 million in cost synergies by year three post-closing, primarily through branch optimization and back-office rationalization.

Regulatory hurdles will include approvals from the Federal Reserve, the Office of the Comptroller of the Currency, and the Texas Department of Banking. Market watchers expect a protracted review, given heightened scrutiny of large-scale bank mergers. However, Huntington’s prior acquisition of FirstMerit Corporation in 2016, which expanded its footprint into Ohio and Michigan, suggests that the bank is adept at navigating complex integration processes.

Financial details released by the companies project that the combined bank will have pro forma assets of approximately $200 billion, making it one of the top 20 U.S. regional banks by asset size. The transaction is expected to be accretive to Huntington’s tangible book value per share in the first year and to deliver mid-to-high single-digit earnings-per-share accretion by the second year post-closing.

Investor reaction was muted but positive. On the day the news broke, shares of Huntington (NASDAQ: HBAN) rose 1.4%, while Veritex (NASDAQ: VBTX) shares climbed 17.3% to reflect the premium offered. Credit rating agencies have affirmed Huntington’s investment-grade status but will review the combined entity’s leverage ratios once the deal is finalized.

Integration planning is already underway, with both banks forming cross-functional teams to address technology alignment, branch network rationalization, and human capital transition. Huntington has pledged to retain Veritex’s Houston-based commercial banking leadership and to honor all existing customer relationships under favorable terms.

Community and industry reactions have been largely favorable. The Dallas Regional Chamber noted that the deal signals continued investor confidence in Texas’s economic resilience. Meanwhile, consumer advocacy groups have urged Huntington to commit to maintaining local lending initiatives in underserved markets, highlighting the importance of community reinvestment obligations.

As Huntington National Bank prepares for its next growth phase, the Veritex acquisition represents both a strategic expansion into a key Sun Belt market and a response to competitive pressures faced by mid-size banks. If executed successfully, the combination will bolster Huntington’s scale, diversify its loan portfolio, and enhance shareholder value.

The banking industry will watch closely as the regulatory review unfolds. For Huntington and Veritex, the pending deal marks a significant milestone that could reshape the competitive dynamics of regional banking in Texas and beyond.