Huntington Bancshares’ $7.4 billion acquisition of Cadence Bank has received its final regulatory approval, offering a clear signal that large U.S. bank mergers are once again moving forward at a brisk pace. Approval from the Office of the Comptroller of the Currency removes the final obstacle for the transaction, which Huntington now expects to close on February 1, positioning the combined institution as a major regional force heading into 2026.

Regulatory Green Light Signals a Shift in Oversight

The OCC’s approval arrived just 56 days after Huntington announced the deal, an unusually swift turnaround for a transaction of this size. The timeline highlights a sharp contrast with the more prolonged merger reviews seen in recent years, when heightened scrutiny and broader policy concerns often extended approval processes well beyond six months. Under the current regulatory climate, deal reviews appear more streamlined, reducing uncertainty for acquirers and investors alike.

Market participants have been watching closely to see whether this faster pace represents a structural change or a temporary acceleration. The Huntington-Cadence approval suggests that regulators are prioritizing efficiency, particularly for transactions involving well-capitalized institutions with clear strategic rationales.

Strategic Expansion Across the Sun Belt

The acquisition will transform Huntington into a $276 billion-asset bank operating across 21 states, significantly extending its reach beyond its Midwest stronghold. Texas emerges as a centerpiece of the strategy, with Huntington set to become the fifth-largest deposit holder in Dallas and Houston, and a top-10 player statewide. The deal adds approximately $53 billion in assets, nearly 390 branches, and about one million customers across Texas and several Southeastern states.

For Huntington, the transaction builds on recent momentum. The bank’s earlier acquisition of Dallas-based Veritex Community Bank laid the groundwork for deeper penetration into high-growth Sun Belt markets. Cadence’s strong regional presence complements Huntington’s commercial banking ambitions and diversifies its revenue base geographically.

Cadence Caps a Transformative Year

For Cadence Bank, the merger concludes a year of significant strategic activity. Earlier in 2025, Cadence expanded its own footprint by acquiring Industry Bancshares, bringing six Texas community banks under its umbrella. Joining Huntington now offers scale, operational leverage, and access to broader capital resources at a time when regional banks face rising technology and compliance costs.

The integration is expected to proceed quickly, with systems conversion slated for the second quarter of 2026. Investors will be watching execution closely, as successful integration will be key to realizing projected cost synergies and revenue opportunities.

Broader Implications for Bank M&A

The Huntington-Cadence approval leaves only one major bank deal above $4 billion still awaiting regulatory clearance as the year closes. This development reinforces the view that the long pause in large-scale bank consolidation may be ending. Faster approvals reduce deal risk premiums and could encourage other regional banks to revisit strategic combinations.

Looking ahead, attention will turn to whether this regulatory posture persists into 2026. If it does, analysts expect renewed merger activity, particularly among mid-sized banks seeking scale, efficiency, and geographic diversification in a competitive and capital-intensive environment.