The Indiana credit union agreed to pay $21.3 million in cash for New Bancorp, which was created when its savings bank converted to a stock-owned company in 2015.
The Wisconsin bank's pending acquisition of 32 Huntington branches would boost its ability to make more loans, but like other banks this quarter it said deposit costs are cutting into margins.
Stephen Steinour said it was pure conjecture that Huntington was a possible suitor for the Dallas bank if it decides to put itself up for sale at some point. He emphasized Huntington's core-growth strategy and upbeat economic signs from consumers and businesses.
The San Antonio bank reported 6.8% growth in loans, but Phil Green said he was unwilling to match overly generous prices and underwriting terms that he is seeing in the market.
Investors seem to be betting that a long-rumored sale of the Dallas company is on hold now that it has named a new CEO, but analysts say it remains an attractive takeover target for a larger regional bank.
Fifth Third Bancorp in Cincinnati also closed on its purchase of MB Financial and benefited from increases in corporate banking revenues and a slight improvement in credit quality.
