1 day ago
1
Good morning. For CFOs navigating 2025’s uncertain landscape, strategic M&A remains one of the few levers for rapid growth—if executed with precision.
I spoke with Zachary Wasserman, CFO of Huntington Bancshares, a $210 billion regional bank holding company based in Columbus, Ohio, about how their latest Texas expansion fits into this new playbook.
Huntington (No. 375 on the Fortune 500) recently announced a definitive agreement to acquire Dallas-based Veritex Holdings, the parent company of Veritex Community Bank, for $1.9 billion in an all-stock deal. The transaction is expected to close in early Q4 2025. As of March 31, Veritex had approximately $13 billion in assets, $9 billion in loans, and $11 billion in deposits.
“This will significantly boost our Texas footprint,” Wasserman said. “Dallas-Fort Worth and Houston are tremendous growth markets, and Veritex’s deep local relationships are a perfect complement.” He described the acquisition as a springboard for growth, not only through expanding commercial lending but also by bringing Huntington’s full suite of services in treasury management, wealth, and capital markets to Veritex customers. “We’re excited to bring all of our branch banking and consumer digital offerings, including mortgage products, to these markets,” he added.
Even amid continued uncertainty, strategic M&A remains attractive. “Organic growth is always our top priority, and you can see that in our Q2 results—over 8% revenue growth and 20% EPS growth,” Wasserman explained. “But when acquisitions offer a compelling fit in strategy, culture, and financials, they can be a powerful accelerant. Texas is now our third-largest state, and with its economic growth, this deal positions us for significant expansion.”
KPMG’s recent midyear M&A survey finds that 74% of dealmakers expect M&A in 2025 to be more active than in 2024. Nearly 65% of dealmakers said they have changed their deal plans since the start of the year, with 22% saying they will do more deals, versus 18% saying they will do fewer deals.
Post-acquisition integration is a top priority, Wasserman noted. “Our experience with prior acquisitions has made this a well-oiled process.” The Huntington executive team recently visited Dallas-Fort Worth and Houston to meet new colleagues and begin integration planning. Wasserman also said the missions and cultures of Huntington and Veritex are well aligned, which he believes is essential for a successful integration.
Q2 earnings
Huntington reported net income of $536 million for the second quarter, with earnings per share of $0.34, an increase of $0.04 year over year. The bank saw 12% growth in net interest income and a 3% increase from the previous quarter, driven by 8% total loan growth year over year, with 10% growth in commercial loans, and a net interest margin (NIM) expansion to 3.11% from 3% in the previous year.
“Most of the NIM expansion comes from optimized funding costs as rates have declined over the past year,” Wasserman said.
As the second quarter progressed, client uncertainty faded, Wasserman noted. “Tariff prospects improved, capital markets stabilized, and equity markets rebounded,” he said. “The economy continues to grow, prompting commercial clients to invest in their businesses, while consumers remain resilient.”
For the remainder of the year, Huntington’s strategy focuses on growing its fee-based businesses, including wealth management, payments, and capital markets. “The biggest risk continues to be the macro economy and geopolitical environment,” Wasserman said. “But what we’re seeing on the ground indicates a strong second half of the year.”
Sheryl Estrada
sheryl.estrada@fortune.com
This story was originally featured on Fortune.com
English (US) ·