Home Bancshares, Inc. · NYSE:HOMB
Home Bancshares — Debt Investor Presentation (January 2022)
25 slides from Home Bancshares's debt investor presentation, Jan 11, 2022
Slide 1: Investor Presentation: Fixed Income Investor Calls January 2022
Investor Presentation Fixed Income Investor Calls January 2022 Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to expectations, beliefs, projec
Slide 3: Additional Information
Additional Information 3 No Offer or Solicitation This presentation is neither an offer to sell nor a solicitation of an offer to purchase any securities of the Home or Happy. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior
Slide 4: Overview of Home Bancshares, Inc.
Overview of Home Bancshares, Inc. 4 Miami Naples Tampa Little Rock Pensacola Adjusted, non-GAAP figure. Please reference the Appendix for a reconciliation of non-GAAP financial measures. Note: Financial data as of or for the nine months ended September 30, 2021 Source: S&P Global Market Intelligence
Slide 5: Home Bancshares Executive Leadership
Home Bancshares Executive Leadership 5 John W. “Johnny” Allison (75), Home BancShares Chairman, President & CEO John Allison is the co-founder of Home BancShares and has been the Chairman of the Board since 1998. In 2019, Mr. Allison was elected CEO. Mr. Allison also serves on the Asset / Liability
Slide 6: Key Differentiators to our story
Key Differentiators to our story 6 Commitment to Financial Strength We prioritize capital positioning and a strong reserve; will never compromise our underwriting philosophy Strong Demographic Tailwinds Presence in Florida, Texas and throughout the South positions the Bank to benefit from meaningful
Slide 7: Proven track record with nearly two decades of successful M&A
Proven track record with nearly two decades of successful M&A 7 2003 2005 2008 2010 2012 2013 Community Bank Cabot, AR Twin City Bank North Little Rock, AR Bank of Mountain View Mountain View, AR Marine Bank Marathon, FL Centennial Bank Little Rock, AR Old Southern Bank Orlando, FL Key West Bank Key
Slide 8: Expansion into High Growth Texas Markets
EXPANSION INTO HIGH GROWTH TEXAS MARKETS 8 Attractive Market Presence Represents MSAs with population of at least 250,000 Deposit and market share information per FDIC from S&P Global Market Intelligence as of June 30, 2021; Ranking excludes credit unions, credit card companies, trust companies and
Slide 9: Positioned to Benefit from Demographic Growth Trends
Deposits: $5.3B 2 Market Rank: 25 2 Population: 29.6M Population Growth: 5.3% Income Growth: 11.2% New Congressional Seats: +2 Top Income Tax Rate: 0% Business Tax Rate: 0.375% Fortune 1000’s: 95 CNBC Business Ranking: 4 Deposits: $8.0B 2 Market Rank: 17 2 Population: 21.9M Population Growth: 4.6% I
Slide 10: Financial Highlights
10 Financial Highlights
Slide 11: Historical and Pro Forma Balance Sheet Trends
Historical and Pro Forma Balance Sheet Trends 11 Note: Data as of September 30, 2021; Pro forma HOMB financial data as of September 30, 2021 is illustrative for the pending acquisition of Happy as detailed in the Home BancShares registration statement filed on November 9, 2021 on sec.gov
Slide 12: Strong Historical Operating Metrics and Shareholder Return
Strong Historical Operating Metrics and Shareholder Return 12 Represents annualized 2021 year-to-date figures Adjusted, non-GAAP figure. Please reference the Appendix for a reconciliation of non-GAAP financial measures. Note: 2021 financial data as of or for the nine months ended September 30, 2021
Slide 13: Pro Forma Revenue Mix
$143.7M $105.6M $42.7M Pro Forma Revenue Mix – Nine months ending 9/30/2021 13 $725.3M $190.2M $539.6M Includes the estimated reduction related to limitations on interchange income Note: Data as of or for the nine months ended September 30, 2021 HOMB HAPPY Pro Forma(1) Fee Income Operating Revenue
Slide 14: Well positioned loan and deposit portfolio
Well positioned loan and deposit portfolio 14 HOMB HAPPY Pro Forma(1) Commercial-focused Loans Low Cost Deposits CRE Concentration: 210.4%2 CRE Concentration: 192.4%2 CRE Concentration: 208.4%2 $9.9B 5.64% Yield $3.5B 5.33% Yield $13.4B 5.56% Yield Excludes purchase accounting adjustments Concentrat
Slide 15: Historical asset quality trends
Historical asset quality trends 15 The Allowance for Credit Losses (“ACL”) was established upon the implementation of CECL on January 1, 2020. Prior periods represent ratios based on the allowance for loan losses as calculated under the incurred loss methodology Note: Data as of or for the nine mont
Slide 16: Cash and Securities Portfolio
Cash and Securities Portfolio 16 Approximately $3.3B of cash and equivalents Approximately $3.2B of securities, primarily consisting of mortgage-backed and government sponsored securities Weighted average yield of 1.98% Average base duration of 3.5 years The Happy Bancshares portfolio consists of $1
Slide 17: Home BancShares Liquidity Position and Sources
Home BancShares Liquidity Position and Sources 17 Cash at the holding company was approximately $245 million as of September 30, 2021 HOMB maintained $400.0 million of FHLB borrowed funds, which are secured by the loan portfolio, and had no other borrowed funds as of September 30, 2021 The remaining
Slide 18: Historical Consolidated Capital Ratios
Historical Consolidated Capital Ratios 18 Total Capital Ratio 34-70-146 Leverage Ratio CET1 Ratio Tier 1 Ratio Note: Data as of September 30, 2021
Slide 19: Double Leverage and Interest Coverage
Double Leverage and Interest Coverage 19 34-70-146
Slide 20: Appendix
20 Appendix
Slide 21: Our Values Are Focused on Being a Strong Corporate Citizen
Our Values Are Focused on Being a Strong Corporate Citizen For all our stakeholders 21 OUR MISSION: Through our community banking philosophy, we are dedicated to consistently exceeding the expectations of our customers, shareholders and bankers while enriching the communities we serve. Centennial Ba
Slide 22: Covid-19 and PPP update
Covid-19 and PPP update 22 As of September 30, 2021, the Company has $229 million of deferrals on 38 loans as allowed under Section 4013 of the CARES Act All of the customers currently on deferment chose principal deferment only and have returned to paying interest monthly Since April 2020, HOMB has
Slide 23: Interest Rate Sensitivity
Interest Rate Sensitivity 23 The following table summarizes the impact on net interest income given an immediate change in interest rates as of September 30, 2021 for Home BancShares on a standalone basis. This analysis indicates the impact of changes in net interest income for the given set of rate
Slide 24: Kroll Bond Rating Agency Summary
Kroll Bond Rating Agency Summary 24 Source: Bloomberg
Slide 25: Non-GAAP Reconciliation
Non-GaAP Reconciliation 25 Note: Data as of or for the nine months ended September 30, 2021; The adjustment to convert net interest income to an FTE basis consists of dividing tax-exempt interest income by one minus the statutory federal income tax rate of 21%; Please reference SEC filings for addit
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