Huntington to buy Veritex in Dallas for $1.9 billion
Huntington Bancshares in Columbus, Ohio, has agreed to buy Veritex Holdings in Dallas.
The $210 billion-asset Huntington said in a press release that it will pay $1.9 billion in stock for the $13 billion-asset Veritex. The deal, which is expected to close in the fourth quarter, priced Veritex at 152% of its tangible book value.
Veritex has $9 billion in loans and $11 billion in deposits.
“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,” Steve Steinour, Huntington’s chairman, president and CEO, said in the release. “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.”
Malcolm Holland, Veritex’s chairman, president and CEO, will join Huntington in a non-executive role as chairman of Texas.
Huntington, as part of the deal, is funding $10 million toward philanthropic investments in Texas.
The deal is expected to be modestly accretive to Huntington’s earnings per share. It should take about a year for Huntington to earn back any dilution to tangible book value.
Evercore, Commerce Street Capital and Wachtell, Lipton, Rosen & Katz advised Huntington. Keefe, Bruyette & Woods and Simpson Thacher & Bartlett advised Veritex.