Huntington Bancshares gets Fed approval to acquire Veritex Holdings

Investing.com -- The Federal Reserve has approved Huntington Bancshares' (NASDAQ: HBAN) acquisition of Veritex Holdings (NASDAQ: VBTX), allowing the Ohio-based financial holding company to expand into Texas.

The merger will combine Huntington, which has approximately $207.7 billion in consolidated assets, with Veritex, which has approximately $12.5 billion in assets. Following the transaction, Veritex Community Bank will be merged into The Huntington National Bank.

Upon completion, Huntington will become the 20th largest insured depository organization in the United States, with consolidated assets of approximately $220.3 billion, representing less than 1 percent of total assets of insured depository institutions nationwide. The combined entity will control approximately $176.3 billion in consolidated deposits.

The Federal Reserve evaluated the proposal under section 3 of the Bank Holding Company Act, considering factors including competitive effects, financial and managerial resources, and compliance with banking regulations.

The U.S. Department of Justice reviewed the potential competitive effects and did not find the proposal would have a significantly adverse effect on competition. Huntington Bank and Veritex Bank do not compete directly in any banking market.

Huntington currently operates in 13 states including Colorado, Florida, Illinois, Indiana, Kentucky, Michigan, Minnesota, North Carolina, Ohio, Pennsylvania, South Carolina, West Virginia, and Wisconsin. The acquisition will mark Huntington's entry into the Texas market.

Both Huntington and Veritex are well capitalized, and the combined organization will remain so after the transaction. The merger is structured as a share or cash exchange.

The Board noted that Huntington Bank has an "Outstanding" rating under the Community Reinvestment Act, and that Huntington has conducted comprehensive due diligence and is committing sufficient resources to address all aspects of the post-acquisition integration process.

Huntington plans to integrate Veritex Bank's existing management and personnel to strengthen its management team as it expands into Texas.

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