Company: HBAN
Filing Date: 2025-12-01
Form Type: S-4/A
Source: 0001140361-25-043815
Chunk: 137

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-12-01
Form: S-4/A
Chunk 137
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 and other merger-related adjustments and the restructuring charge assumed with respect thereto) provided by Huntington management, KBW analyzed the potential financial impact of the merger on certain projected financial results of Huntington. This analysis indicated the merger could be accretive to Huntington’s estimated 2026 EPS and estimated 2027 EPS and could be dilutive to Huntington’s estimated tangible book value per share at closing assumed as of March 31, 2026. The analysis also indicated that, based on Huntington’s projected pro forma financial results attributable to a share of Cadence common stock using the 2.475x exchange ratio provided for in the merger agreement, the merger could be accretive relative to Cadence’s estimated 2026 EPS and estimated 2027 EPS and could be dilutive relative to Cadence’s estimated tangible book value per share at closing assumed as of March 31, 2026. Furthermore, the analysis indicated that, pro forma for the merger, each of Huntington’s tangible common equity to tangible assets ratio, Tier 1 Leverage Ratio, Common Equity Tier 1 Ratio, Tier 1 Capital Ratio and Total Risk-based Capital Ratio at closing assumed as of March 31, 2026 could be lower. For all of the above analysis, the actual results achieved by Huntington following the merger may vary from the projected results, and the variations may be material.

Cadence Dividend Discount Model Analysis. KBW performed a dividend discount model analysis of Cadence to estimate a range for the implied equity value of Cadence. In this analysis, KBW used publicly available consensus “street estimates” of Cadence and assumed long-term growth rates for Cadence provided by Cadence management, and KBW assumed discount rates ranging from 12.0% to 14.0%. The range of values was derived by adding (i) the present value of the implied future excess capital available for dividends that Cadence could generate over the period from March 31, 2026 through December 31, 2030 as a standalone company, and (ii) the present value of Cadence’s implied terminal value at the end of such period. KBW assumed that Cadence would maintain a common equity tier 1 to risk weighted assets ratio of 10.00% and would retain sufficient earnings to maintain that level. In calculating the terminal value of Cadence, KBW applied a range of 9.0x to 11.0x Cadence’s estimated 2031 earnings. This dividend discount model analysis resulted in a range