Company: HBAN
Filing Date: 2025-10-28
Form Type: 425
Source: 0001140361-25-039508
Chunk: 6

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-10-28
Form: 425
Chunk 6
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 in greater detail. Zachary J. Wasserman CFO & Senior EVP Thank you, Brant. Turning to Slide 10. As Steve noted, we approached this transaction with discipline and a focus on shareholder value. We were drawn to Cadence because it's a compelling strategic, cultural and financial fit. Strategically, Cadence is a premier regional franchise with deep roots and strong leadership across high-growth markets. By joining forces, we accelerate our growth trajectory across the combined footprint. Culturally, there is a remarkable alignment between our organizations. Cadence's customer- first business model, commitment to local communities and track record of performance mirror Huntington's values and approach. The addition of Cadence's leadership, including Dan Rollins and 2 Cadence Board members to Huntington's Board will further strengthen our ability to execute and deliver for our stakeholders. Financially, this transaction is designed to deliver compelling returns. The deal is structured as an all-stock transaction with Cadence shareholders receiving 2.475 Huntington shares for each Cadence share, resulting in pro forma ownership split of 77% Huntington and 23% Cadence. Let's spend a moment on key financial metrics. The aggregate consideration for the transaction is $7.4 billion, representing 1.7x tangible book value and 11.7x 2026 consensus earnings per share or importantly, 8.2x synergy adjusted earnings per share. The transaction is expected to be accretive to 2027 earnings per share by 10% and to return on tangible common equity by 200 basis points. We project a pro forma tangible book value per share at close of $9.33. This suggests 7% dilution to the estimated first quarter 2026 TBV or just 2 percentage points from the third quarter level of $9.54. The earn-back period is 3 years, reflecting the increased earnings power of the combined platform and cost synergy realization. I will highlight that aligned to market convention, none of the reported financial metrics include any revenue synergies, which we have high confidence in achieving. We anticipate minimal impacts to our capital ratios, with an expected adjusted CET1 at closing of 9.2%. We will maintain a strong balance sheet and financial flexibility to support ongoing growth and investment. We're committed to continuity and local leadership and key operating centers in Tupelo, Birmingham and Houston will remain important colleague locations. This structure ensures continuity, local leadership, preserving deep relationships and sets us up for strong future growth. This combination creates a premier