Home Bancshares, Inc. · NYSE:HOMB
Home Bancshares — Merger or Acquisition (September 2021)
22 slides from Home Bancshares's merger presentation, Sep 15, 2021
Slide 1: Home BancShares Announces Acquisition of Happy Bancshares
Home BancShares Announces Acquisition of Happy Bancshares Creating a Happy HOMB from Panhandle to Panhandle Exhibit 99.2
Slide 2: Forward looking statement
Forward looking statement This presentation contains forward-looking statements which include, but are not limited to, statements about the benefits of the business combination transaction involving Home BancShares, Inc. (“Home”) and Happy Bancshares, Inc. (“Happy”), including the combined company’s
Slide 3: Additional information and where to find it
Additional information and where to find it This presentation may be deemed to be solicitation material in respect of the proposed transaction by Home and Happy. In connection with the proposed acquisition, Home intends to file with the Securities and Exchange Commission (the “SEC”) a Registration S
Slide 4: Creating a dominant southern institution from panhandle to panhandle
Creating a dominant southern institution from panhandle to panhandle Meaningful Entrance into High-Growth Texas Markets $6.3 billion in total assets #25 ranked by Texas deposits Dominant Panhandle and South Plains market share and an entrance into Dallas/Fort Worth and Austin markets Largest private
Slide 5: Expansion into high growth Texas markets
EXPANSION INTO HIGH GROWTH TEXAS MARKETS 5 Expansive Geographic Footprint Enhancing Our Presence in High Growth Markets 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
Slide 6: Positioned to Benefit from Demographic Growth Trends
Deposits: $5.3B Market Rank: 25 Population: 29.6M Population Growth: 6.8% Income Growth: 6.6% 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 Market Rank: 17 Population: 21.9M Population Growth: 5.9% Income Gro
Slide 7: Proposed Terms of the Transaction
Proposed Terms of the Transaction 7 Home BancShares, Inc. (NASDAQ : HOMB) will be the surviving entity 2.17x HOMB shares for each share of Happy Bancshares, Inc. common stock Options to be rolled into HOMB common stock Leadership & Branding J. Pat Hickman, Chairman, President and Founder of Happy Ba
Slide 8: Rare, Day Triple Accretive transaction
Rare, Day 1 Triple Accretive transaction 8 Robust Capital Positioning and Operating Profile Accretive to EPS Accretive to BVPS 2022E EPS Accretion1 2023E EPS Accretion BVPS Accretion TBVPS Accretion 5.5% 9.2% 5.1% 1.5% CET 1 Ratio at Closing Total Capital Ratio at Closing ROATCE Increase 14.4% 18.9%
Slide 9: Happy Bancshares overview – a high performing Texas bank
Happy Bancshares overview – a high performing Texas bank 9 J. Pat Hickman – Chairman, President and Founder of Happy Bancshares, Inc. Chairman of Happy State Bank 40+ Years of Banking Experience Mikel Williamson – CEO of Happy Bancshares, Inc. President and CEO of Happy State Bank. 20+ Years of Bank
Slide 10: Granular, low cost deposit generators
Granular, low cost deposit Generators 10 HOMB HAPPY Pro Forma(1) Type of Deposit Geography of Deposits Cost of Total Deposits: 0.19% Cost of Total Deposits: 0.15% Cost of Total Deposits: 0.18% $13.9B Total $5.3B Total $19.2B Total Loans/Deposits: 73.4% Loans/Deposits: 65.6% Loans/Deposits: 71.3% 100
Slide 11: Diversified, commercial-focused loan portfolio
Diversified, commercial-focused loan portfolio 11 HOMB HAPPY Pro Forma(1) Type of Loan Geography of Loans Yield on Loans and Leases: 5.40% Yield on Loans and Leases: 5.80% Yield on Loans and Leases: 5.50% CRE Concentration: 240.2% CRE Concentration: 215.0% CRE Concentration: 233.7% C&D Concentration
Slide 12: Significant Due Diligence
Significant Due Diligence Significant credit review and conservative credit mark 12 Retail Centers $104.3M Energy $78.3M Restaurants $37.1M Hotels $131.3M $78.3M Total <1% of Combined Loan Portfolio ~20 Years Average Experience ~70% of Exposure in Permian Basin 45% of Loan Balance Reviewed 616 Loans
Slide 13: The combination of shared values provides benefits for all stakeholders
The combination of shared values provides benefits for all stakeholders 13
Slide 14: Creating a dominant southern Institution from panhandle to panhandle
Creating a dominant southern Institution from panhandle to panhandle 14
Slide 15: Benefits of the combination
Benefits of the combination 15
Slide 16: Total shareholder return since HOMB Initial Public Offering
Total shareholder Return Since HOMB Initial Public Offering 16 Benefits to Happy Shareholders: Will receive a quarterly dividend Immediate liquidity in their stock Pledging ability of stock Per Bloomberg; Closing price as of September 10, 2021; Total return defined as stock appreciation inclusive of
Slide 17: Appendix
appendix 17
Slide 18: Tangible book value per share at closing reconciliation
Tangible book value per share at closing Reconciliation 18 ~1.5% HOMB Standalone (2Q’21) Est. Growth To Close1 HOMB Est. at Close (4Q’21) Equity Consideration And Purchase Accounting Impact Est. Total Restructuring Costs2 Pro Forma TBVPS Core Deposit Intangible Established Net Impact of CECL Reserve
Slide 19: Key merger assumptions
Key merger Assumptions 19 Approximately $55 million, pretax Assumed to occur 100% at closing for modeling purposes HOMB 2021 and 2022 EPS estimates of $1.89 and $1.66, respectively, and 2023 net income estimate of $278 million Happy net income estimates of $68.3 million and $71.7 million for 2022 an
Slide 20: Due diligence summary
Due diligence summary 20 Extensive credit diligence consisting of 18 HOMB professionals conducting a deep dive across business, operations and risk ~$1.6B loans, or 45%, of total loans, were subject to review 616 loans reviewed ~2,000 diligence files reviewed consisting of over 56,000 pages Engageme
Slide 21: Pro forma demographic highlights
Pro forma Demographic highlights 21 ’21 – ’26 Projected Population Growth (%) Relative to Peers Meaningful Market Presence in Nearly Half of the Top 20 Growth MSAs in the Southeast and Southwest Sorted by Project ’21-’26 Population Growth Arkansas Florida $150 $503 $242 $2.9B $817 $456 $743 $182 $2.
Slide 22: Earnings per share reconciliation
Earnings per share Reconciliation 22 Projections based on Wall Street consensus estimates
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