Huntington Bancshares Inc. has sealed a $1.9 billion all-stock deal to acquire Dallas-based Veritex Holdings Inc., a bold move that will supercharge the Midwestern bank's ambitions deep in the heart of Texas.

Announced Monday, the transaction will issue 1.95 Huntington shares for each Veritex share, valuing Veritex stock at $33.91 — a nearly 20% premium over its recent trading price. Following the news, Veritex stock soared nearly 20% to $32.89 per share on Monday afternoon.

A Lone Star Expansion Strategy

The acquisition underscores Huntington’s aggressive pursuit of growth in Texas' booming economy, with Dallas-Fort Worth and Houston serving as the launchpads for its regional expansion. Huntington already operates selectively in Texas through middle-market lending, SBA lending, and automotive finance. This deal adds fuel to that engine.

“This combination supports our ambitions and reflects our long-term commitment to the state of Texas — one of the most dynamic and fastest-growing economies in the country,” said Steve Steinour, chair, president and CEO of Huntington.

What Veritex Brings to the Table

Veritex specializes in deposit and lending services geared toward small- to mid-sized businesses. With roughly $13 billion in assets, $9 billion in loans, and $11 billion in deposits, it gives Huntington more than 30 new branches and a robust operational base in Texas’ most competitive metros.

“Veritex has always been a people and community-focused bank. We have found a partner in Huntington who shares and lives out those same values,” said Malcolm Holland, CEO of Veritex, who will assume the role of non-executive chair of Texas at Huntington post-acquisition.

National Profile, Regional Focus

Huntington is already one of the top 10 regional banks in the U.S., boasting $210 billion in assets. The Veritex acquisition follows its $22 billion takeover of TCF Financial Corp. in 2021, which catapulted the bank’s presence across the Midwest after a DOJ-mandated divestiture.

This new deal further diversifies Huntington’s reach, with Texas emerging as a centerpiece in its long-term strategy. The company also reaffirmed its position as the No. 1 SBA 7(a) loan originator both nationwide and within Texas.

Commitment to Community Roots

Beyond business, Huntington pledged $10 million in philanthropic investments to support local communities across Texas as part of the merger. The bank also plans to maintain and expand Veritex’s current branch network, signaling a commitment to community banking over consolidation.

Legal Advisors in the Deal

• Wachtell Lipton Rosen & Katz is advising Huntington, led by partners Edward D. Herlihy and Nicholas G. Demmo.

• Simpson Thacher & Bartlett LLP is representing Veritex, with a team including partners Sven Mickisch, Timothy Gaffney, Brian Christiansen, and Larry Moss.