COLUMBUS, Ohio – Huntington Bancshares Inc. and Veritex Holdings Inc. on Monday announced they’ve entered into a definitive merger agreement.
“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, chairman, president and CEO of Huntington Bancshares. “The Veritex team brings deep local relationships, a strong commercial banking franchise and customer loyalty, and this partnership will serve as a springboard for substantial future growth in the state.”
Veritex, headquartered in Dallas, operates more than 30 branches across Texas markets including Dallas/Fort Worth and Houston. Huntington plans to maintain Veritex’s branch network and invest to grow it over time.
“Veritex has always been a people and community-focused bank. We have found a partner in Huntington Bank who shares and lives out those same values,” said Malcolm Holland, chairman, president and CEO of Veritex. “We are very excited about becoming part of the Huntington family and bringing more capabilities to our Texas clients than ever before.”
Holland will join Huntington in a nonexecutive role as chairman of Texas and continue his work to serve local customers and communities.
“Veritex has assembled a talented and experienced team who have earned the trust and loyalty of individuals, families and companies of all sizes across Texas,” said Brant Standridge, president of consumer and regional banking at Huntington. “We’re excited to build on their impressive legacy and, together with Veritex colleagues, continue to be a reliable partner supporting our customers and communities.”
Under the terms of the agreement, Huntington will issue 1.95 shares for each outstanding share of Veritex in a 100% stock transaction. Based on Huntington’s closing price of $17.39 as of July 11, the consideration implies $33.91 per Veritex share, or an aggregate transaction value of $1.9 billion.
The merger is expected to close early in the fourth quarter, subject to regulatory approvals and customary closing conditions. Upon conversion, Veritex teams and branches will operate under the Huntington Bank name and brand.