ARGENT INSTITUTIONAL TRUST COMPANY TO ACQUIRE CORPORATE TRUST AND INSTITUTIONAL CUSTODY BUSINESS FROM HUNTINGTON BANK

Rhea-AI Summary

Argent Institutional Trust Company (AITC) has announced a definitive agreement to acquire Huntington National Bank's (NASDAQ: HBAN) corporate trust and institutional custody business. The strategic acquisition includes the transfer of key client relationships, personnel, and operational infrastructure from Huntington to AITC. The deal will establish an ongoing relationship where AITC will provide corporate trust, escrow, and custody solutions to Huntington's business and commercial banking clients. Key Huntington personnel will transition to AITC, ensuring service continuity. The acquisition significantly expands AITC's institutional trust footprint and strengthens its position as a national leader in corporate trust and custody services. The integration is expected to be completed within months, with AITC maintaining its client-centered approach that has defined its 70-year history.

Positive

• Expansion of AITC's institutional trust footprint and strengthening of its national leadership position
• Retention of key Huntington personnel ensures service continuity for existing clients
• Strategic ongoing relationship established between AITC and Huntington for continued business collaboration
• Integration expected to enhance service flexibility and innovation for clients

Negative

• Integration process could present operational challenges during transition period
• Potential client attrition risk during business transfer
• Transaction value and financial terms not disclosed

Insights

Financial Services Analyst

Huntington divests non-core corporate trust business to specialist AITC, maintaining client relationships while streamlining operations.

Huntington Bancshares (HBAN) is divesting its corporate trust and institutional custody business to Argent Institutional Trust Company in a strategic move that appears to rationalize its business portfolio. The deal structure is particularly noteworthy as it creates an ongoing relationship where Argent will provide specialized trust services to Huntington's business and commercial banking clients, essentially converting an internal operation into a partnership model.

This transaction represents a classic non-core business divestiture that banks often pursue to enhance operational efficiency. For Huntington, this allows management to focus resources on core banking services while maintaining client relationships through the partnership with AITC. The transfer of key personnel to AITC suggests the bank is prioritizing service continuity for clients while removing the operational burden from its balance sheet.

While financial terms weren't disclosed, this type of transaction typically generates immediate capital relief and operational cost savings, with minimal revenue impact due to the ongoing relationship structure. Huntington likely recognized that corporate trust services, which require specialized expertise and dedicated compliance resources, could be more efficiently delivered by a focused provider like AITC.

The deal intelligently preserves Huntington's client relationships and revenue streams while eliminating the overhead and specialized compliance requirements of maintaining an in-house trust division. This appears to be a sensible portfolio optimization that allows Huntington to concentrate on its core banking strengths while ensuring clients receive specialized trust services through a dedicated provider.

TAMPA, Fla., June 6, 2025 /PRNewswire/ -- Argent Institutional Trust Company (AITC), a Tampa, Florida-based trust company and a leading provider of corporate and institutional trust services, today announced it has entered into a definitive agreement to acquire the corporate trust and institutional custody business of The Huntington National Bank ("Huntington"), a wholly owned banking subsidiary of Huntington Bancshares Incorporated (Nasdaq: HBAN).

This strategic acquisition will significantly expand AITC's institutional trust footprint, deepening its capabilities and strengthening its position as a national leader in corporate trust and custody services. The transaction includes the transfer of key client relationships, personnel, and operational infrastructure from Huntington to AITC.

AITC and Huntington will have an ongoing relationship in which Argent will provide corporate trust, escrow, and custody solutions to Huntington's business and commercial banking clients. By aligning AITC's administration teams with Huntington's corporate, commercial, and government banking teams, clients will continue to have access to their current banking solutions through Huntington plus an expanded array of corporate trust and institutional custody options through AITC. Key Huntington personnel will be transferring to AITC, meaning clients will continue to receive exceptional service.

"This acquisition aligns with our long-term growth strategy and commitment to delivering high-quality, customized trust and agency solutions," said Anthony (Tony) Guthrie, Chairman of AITC. "We are excited to welcome Huntington's talented team and their clients to AITC. This addition enhances our scale, expertise, and the depth of service we can offer to our institutional partners across the country."

"I'm delighted that Huntington recognized the expertise and quality of corporate trust and institutional custody services at AITC and was confident that its clients would continue to receive unparalleled support from a full-service provider," added Steven B. Eason, CEO of AITC.

Huntington's corporate trust and institutional custody business, which provides bond trustee, paying agent, escrow agent, collateral agent, and custody services to corporations, municipalities, mutual funds, and not-for-profit clients, will be integrated into AITC's national platform through the acquisition, ensuring continuity for existing clients while enhancing service flexibility and innovation.

"Our mission is to keep clients at the center of all we do, and this relationship allows these corporate trust and institutional custody clients to continue to benefit from a high level of expertise, service and commitment to their financial success," said Melissa Holding, Executive Vice President and Director of Wealth Management at Huntington. "We're confident that clients will continue to receive the exceptional service they have come to expect, and that both clients and colleagues will experience a seamless transition."

AITC plans a seamless transition, with full integration expected to be completed in the coming months. The company will continue to operate with the same client-centered philosophy that has defined its more than 70-year history.

About Argent Institutional Trust Company (AITC)

Originally founded as Trust Management Incorporated in 1954, TMI was a Texas-chartered trust company. In August 2023, TMI merged with Argent Financial Group to become AITC and is headquartered in Tampa, FL, as a Florida trust company. Since its inception, AITC has grown into a full-service provider of trust and agency services.

AITC operates administration offices in Tampa (FL), Atlanta (GA), Fort Worth (TX), Milwaukee (WI), and New York City (NY), delivering exceptional client care across four primary service categories: trustee, escrow, and loan agency; custody services; IRA; family office and investment partnerships.

AITC is a wholly owned subsidiary of Argent Financial Group (Argent), a leading, independent client asset services firm with a particular focus on corporate trust and custody services through AITC. Following this acquisition, the firm will be responsible for more than $175 billion in client assets. Formed in 1990 in Ruston, Louisiana, Argent can trace its roots back to 1930. For more information, visit www.ArgentFinancial.com.

About Huntington

Huntington Bancshares Incorporated is a $210 billion asset regional bank holding company headquartered in Columbus, Ohio. Founded in 1866, The Huntington National Bank and its affiliates provide consumers, small and middle‐market businesses, corporations, municipalities, and other organizations with a comprehensive suite of banking, payments, wealth management, and risk management products and services. Huntington operates 968 branches in 13 states, with certain businesses operating in extended geographies. Visit Huntington.com for more information.

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SOURCE Argent Institutional Trust Company

FAQ

What is the purpose of AITC's acquisition of Huntington Bank's corporate trust business?

The acquisition aims to expand AITC's institutional trust footprint, enhance its capabilities, and strengthen its position as a national leader in corporate trust and custody services.

How will this acquisition affect Huntington Bank (HBAN) clients?

Clients will maintain access to their current banking solutions through Huntington while gaining expanded corporate trust and institutional custody options through AITC, with key personnel transferring to ensure service continuity.

When will AITC complete the integration of Huntington's corporate trust business?

The full integration is expected to be completed in the coming months, with AITC planning a seamless transition.

What services are included in the Huntington Bank (HBAN) corporate trust acquisition?

The acquisition includes bond trustee, paying agent, escrow agent, collateral agent, and custody services for corporations, municipalities, mutual funds, and not-for-profit clients.

Will Huntington Bank (HBAN) maintain any relationship with AITC after the acquisition?

Yes, AITC and Huntington will maintain an ongoing relationship where AITC will provide corporate trust, escrow, and custody solutions to Huntington's business and commercial banking clients.