Home Bancshares, Inc. · NYSE:HOMB
Home Bancshares — Investor Presentation (May 2010)
49 slides from Home Bancshares's investor presentation, May 3, 2010
Slide 1: Home BancShares (NASDAQ: HOMB)
NASDAQ: HOMB www.homebancshares.com
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements conta
Slide 3: Where is Arkansas?
@& ~~ Where is Arkansas?
Slide 4: Company History
Company History The table below lists our acquisitions of bank subsidiaries: (a) Prior to the date of the acquisition, we owned approximately 32% of the shares of TCBancorp, the parent company of Twin City Bank. (b) In 1995, Mr. Allison, our Chairman and Chief Executive Officer, was a founding board
Slide 5: Charter Consolidation Completed Q2 2009
Charter Consolidation Completed Q2 2009 First State Bank - December 2008 Marine Bank - December 2008 Community Bank - March 2009 Bank of Mountain View - March 2009 Twin City Bank - June 2009 Centennial Bank - June 2009
Slide 6: HBI Executives
HBI Executives (126 years experience) John Allison (27) Founder, Chairman Former Chairman of the Executive Committee, First Commercial Corp. Randy Sims (34) Chief Executive Officer Former EVP with First National Bank of Conway (Sub. of First Commercial Corp.) Randy Mayor (23) Chief Financial Officer
Slide 7: Regional Bank Presidents
Regional Bank Presidents (97 years experience) Randy Sims (34) Centennial Bank (Formerly First State Bank) Former EVP with First National Bank of Conway (Sub. of First Commercial Corp.) Tracy French (24) Centennial Bank (Formerly Community Bank) Former EVP and Director of First State Bank of Lonoke
Slide 8: Community Presidents
Community Presidents David A. Druey Conway Market Teresa J. Condas Florida Market Justin S. Lawson Searcy Market Bradley J. Shipman Mountain View Market Davy Carter Cabot Market William "Don" Rodgers Heber Springs Market Mike H. Trammel Fordyce/Rison Market Clifford "Donnie" Farmer Jacksonville Mark
Slide 9: 2009 Common Stock Offering
2009 Common Stock Offering Transaction summary Issued 5.7 million shares Issuance price $19.85 Net proceeds $107.3 million Use of proceeds Acquisitions - FDIC assisted Arkansas & contiguous markets Florida & Florida Keys Potential TARP repayment
Slide 10: Old Southern Bank Acquisition
Old Southern Bank Acquisition Acquired 7 branches are currently operating as Centennial Bank Orlando (3) Longwood (2) Winter Park (1) Clermont (1) All loans and other real estate owned are covered by FDIC loss protection
Slide 11: OSB Acquisition: Transaction Overview
OSB Acquisition: Transaction Overview Assets of $335.4 million excluding purchase adjustments Loans of $179.1 million after loan discounts of $94.1 million Deposits of $328.5 million $9.7 million pre-tax gain on acquisition March 12, 2010
Slide 12: OSB Acquisition: Strategic Opportunity
OSB Acquisition: Strategic Opportunity Branch expansion into Lake, Orange & Seminole counties Deposit market growth potential 16% greater than the 5- year national average Household income growth potential 10% greater than the 5- year national average Loan market growth potential 36% greater than th
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Slide 14: Old Southern Bank
0! TsourHery BANK
Slide 15: Key West Bank Acquisition
Key West Bank Acquisition Key West Bank represents our second successful FDIC-assisted acquisition within two weeks All loans and other real estate owned are covered by FDIC loss protection Acquired one full service branch currently operating as Centennial Bank KEY WEST BANK
Slide 16: KWB Acquisition: Transaction Overview
KWB Acquisition: Transaction Overview Assets of $96.8 million excluding purchase adjustments Loans of $46.9 million after loan discounts of $18.3 million Deposits of $66.7 million $2.1 million pre-tax gain on acquisition KEY WEST BANK March 26, 2010
Slide 17: KWB Acquisition: Strategic Opportunity
KWB Acquisition: Strategic Opportunity Expand our current market share in Key West Slightly accretive for its size to the following: Net income Earnings per share Book value Tangible book value Leverage our present infrastructure in Key West Leverage a small percentage of our excess capital KEY WEST
Slide 18: Centennial Bank
‘Ep CENTENNIAL BANK ff
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Slide 20: 1st Quarter 2010: $3.1 Billion Holding Company
1st Quarter 2010 $ 3.1 Billion Holding Company
Slide 21: Florida History
Florida History Acquired Marine Bank - 6/1/05 Opened in 1995 John Allison was a founding organizer and board member Merged into Centennial Bank with First State Bank in December 2008 Florida Covered Loans: 3/31/10 $226 million Florida Non-Covered Loans: 3/31/10 $318 million Florida Deposits: 3/31/10
Slide 22: Florida Keys Facts
Florida Keys Facts American Caribbean Limited land Restricted building covenants ROGO rights Height restrictions/no high rise condos Limited residential overhang
Slide 23: Monroe County vs Rest of Florida
Monroe County vs Rest of Florida Below is a chart that shows Monroe's relatively low unemployment rate compared to the rest of the state Source: Federal Reserve Bank of St. Louis.
Slide 24: Holding Company Profile
Holding Company Profile ARKANSAS Mountain View (2) Searcy (3) Beebe (2) Ward Cabot (5) Jacksonville (3) Sherwood (2) Greenbrier Vilonia Conway (7) Mayflower Maumelle North Little Rock (5) Little Rock (9) 49 Branches (As of 3/31/10) Bryant Quitman Morrilto n Fordyce Riso n Heber Springs $3.1 billion
Slide 25: Insider Ownership
Insider Ownership Name Title Beneficial Shares Owned as of 1/31/10 Beneficial Ownership % John Allison Chairman 2,768,748 10.7% Robert "Bunny" Adcock Vice Chairman 708,722 2.8% Richard Ashley Board Member 1,185,016 4.6% Alex Lieblong Board Member 551,282 2.1% Other Board Members 809,862 3.1% Other M
Slide 26: Arkansas: No Boom-No Bust
Arkansas: No Boom-No Bust Year Arkansas Florida California Nevada Arizona Michigan 2009 1.5 -8.2 -0.4 -17.3 -12.7 -2.8 2008 -2.7 -24.0 -25.5 -28.2 -20.6 -11.4 2007 3.6 -4.7 -6.7 -5.9 -2.4 -4.3 2006 6.6 9.5 4.6 4.0 9.6 -0.4 2005 7.5 26.8 21.1 18.0 34.9 3.8 2004 6.2 18.8 23.4 32.4 14.5 4.4 Percent Cha
Slide 27: Fayetteville Shale Map
Fayetteville Shale Map Home BancShares, Inc., Arkansas Locations Mountain View Searcy Beebe Ward Cabot Jacksonville Sherwood Greenbrier Vilonia Conway Mayflower Maumelle Little Rock Bryant Quitman Rison Fordyce North Little Rock Morrilton Heber Springs
Slide 28: Fayetteville Shale Impact
Fayetteville Shale Impact $17.9 billion of economic output 2008-2012 Direct employment of more than 11,000 people in Arkansas 2008-2012 Source: University of Arkansas 2008 Economic Impact Study
Slide 29: Base Sector Employers
Base Sector Employers $1.2 billion in new capital investments for Central Arkansas 9,921 new jobs Approximately $350 million in new annual payroll in less than four years Source: Little Rock Regional Chamber of Commerce Business Guide 2009
Slide 30: Little Rock Region Recognition
Little Rock Region Recognition America's Second Best Bang-for-the-Buck City Forbes.com Fourth Strongest Economy Business Week Sixth Most-livable, Bargain Real Estate Market MSN Real Estate Seventh Strongest Economy Brookings Institution Ninth Strongest Housing Market Forbes.com Top Ten in Projected
Slide 31: Deposit Market Share
Deposit Market Share Selected Markets Branches HBI Deposits 6/30/09 Total Deposits in Market Deposit Market Share Rank Deposit Market Share Little Rock, AR 9 $373 $7,290 5 5.1% Monroe County, FL 10 267 2,226 4 12.0% North Little Rock, AR 6 273 1,186 1 23.0% Conway, AR 9 373 1,163 1 32.0% Cabot, AR 5
Slide 32: Little Rock MSA Deposit Market Share
Little Rock MSA Deposit Market Share Rank Holding Company Branch Count Deposits in Market Market Share 6/30/09 Market Share 6/30/00 (a) Change 1 Bank of America Corp. 18 $2,107 16.5% 16.7% -0.2% 2 Regions Financial Corp. 33 1,877 14.7% 25.5% -10.8% 3 Home BancShares, Inc. 39 1,428 11.2% 5.1% 6.1% 4
Slide 33: Total Loans
Total Loans Total Non-Covered Total Covered Hotel/Motel Office Building Warehouse Commercial Construction Church Property Real Estate Agricultural Other Loans by Class by Collateral 1959666 225885 109 97 89 69 49 16 85 $2.19 Billion in Total Loans Receivable
Slide 34: Loans Not Covered by Loss Share
Loans Not Covered by Loss Share Loan Type Florida $ Amount (in millions) Total $ Amount (in millions) % of Total Loans Commercial RE (Non-farm/non-residential & agri.) $ 155 $ 853 44% Construction/Land Development 43 364 18% Residential Real Estate 97 445 23% Commercial & Industrial (a) 11 232 11% C
Slide 35: Commercial Real Estate Not Covered by Loss Share
Single Purpose Bldg Retail Space Hotel/Motel Office Building Warehouse Commercial Construction Church Property Real Estate Agricultural Other Loans by Class by Collateral 178 117 109 97 89 69 49 16 85 Commercial Real Estate Not Covered by Loss Share (Non-farm/non-residential & agricultural) $853 mil
Slide 36: Construction/Land Development Not Covered by Loss Share
Construction/Land Development Not Covered by Loss Share Raw Land Multi Family Construction Residential Commercial Construction Hotel/Motel Construction 1-4 Family Spec Commercial 1-4 Family Presold Other Loans by Class by Collateral 82 60 32 35 38 33 18 16 49 $364 million portfolio
Slide 37: Non-performing Non-Covered Assets
Non-performing Non-Covered Assets As of March 31, 2010 Loan Type Total $ Amount (in thousands) Florida $ Amount (in thousands) Florida % Non-performing non-covered loans $37,822 $28,107 74% Non-covered other real estate owned $18,004 $12,215 68% Non-performing non-covered assets $55,826 $40,322 72%
Slide 38: Financial Strength
Financial Strength As of March 31, 2010 $478 Million Total Capital $267 Million Excess Capital $144 Million Cash - Parent Co. 12.2% TCE Ratio 2.19% Allowance to Non-Covered Loans
Slide 39: Quarterly Net Interest Margin
Quarterly Net Interest Margin Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Book Value 0.0338 0.0348 0.0353 0.0352 0.0357 0.0342 0.0342 0.0351 0.0355 0.0361 0.0378 0.0389 0.0382 0.0378 0.0393 0.0408 0.0426 0.0414 0.0426
Slide 40: Quarterly Non Interest Expense - Core
Quarterly Non Interest Expense - Core Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Book Value 0.0338 0.0348 0.0353 0.0352 0.0357 0.0342 0.0342 0.0351 0.0355 0.0361 0.0378 0.0389 18.5 18.3 18.6 18.2 17.1 16.5 17.5 (Dollars in Millions)
Slide 41: Quarterly Efficiency Ratio - Core
Quarterly Efficiency Ratio - Core Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Efficiency 0.639 0.6346 0.6668 0.6674 0.6372 0.631 0.6252 0.6295 0.6247 0.6054 0.631 0.59 0.5925 0.5933 0.5944 0.5611 0.5138 0.493 0.5121
Slide 42: Loans
Loans (Dollars in Millions) '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 Q1 Loans 122000 171000 236000 285000 500000 517000 1205000 1416000 1607000 1956000 1950285 2185551 '10
Slide 43: Deposits
Deposits (Dollars in Millions) '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 Q1 Deposits 130000 190000 237000 279000 572000 553000 1427000 1607000 1592000 1848000 1835423 2221088 '10
Slide 44: Assets
Assets (Dollars in Millions) '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 Q1 Assets 153000 221000 322000 369000 803000 805000 1911000 2191000 2292000 2580000 2684865 3078199 '10
Slide 45: Capital
Capital (Dollars in Millions) '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 Q1 Loans 22345 23118 35997 46753 99472 106610 165857 231419 253056 283044 464973 478338 '10
Slide 46: Net Income
Net Income '99 '00 '01 '02 '03 '04(a) '05 '06 '07 '08 '09 Q109 Q110 Loans -1113000 -35000 1356000 3877000 3769000 6424000 11446000 15918000 20445000 10116000 26806000 6245000 14374000 Note: (a) Excludes the effect of a $2.7 million after-tax gain (Dollars in Millions)
Slide 47: Diluted Earnings Per Share
Diluted Earnings Per Share '99 '00 '01 '02 '03 '04(a) '05 '06 '07 '08 '09 Q109 Q110 DEPS -0.29 -0.01 0.27 0.71 0.58 0.62 0.76 0.93 1.08 0.5 1.12 0.28 0.53 Note: (a) Excludes the effect of a $2.7 million after-tax gain
Slide 48: Summary
Summary 2009 Charter Consolidation FDIC Acquisitions - remaining in the game Operating in one of the top 10 best MSA's in the US Expanding Central Arkansas Economy Record Annual Net Income Record Annual Diluted Earnings Per Common Share Record Efficiency Ratio Record Net Interest Income Strong Loan
Slide 49: www.homebancshares.com
NASDAQ: HOMB www.homebancshares.com