Home Bancshares, Inc. · NYSE:HOMB
Home Bancshares — IPO Roadshow (January 2022)
27 slides from Home Bancshares's IPO roadshow presentation, Jan 13, 2022
Slide 1: January 2022 Investor Presentation
Filed Pursuant to Rule 433 Supplementing the Preliminary Prospectus Supplement Dated January 13, 2022 Registration No. 333-261495 January 13, 2022 January 2022 Investor Presentation NYSE: HOMB | January 2022 www.homebancshares.com
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 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 t
Slide 4: Proposed Terms of the Offering
PROPOSED TERMS OF THE OFFERING Issuer (Ticker) • Home BancShares, Inc. (NYSE:HOMB) Security • Fixed-to-Floating Rate Subordinated Notes due 2032 Aggregate Principal Amount • $300 Million Rating • BBB by Kroll Maturity • 10 Years Call Date • 5 Years • General corporate purposes, which may include, bu
Slide 5: Overview of Home BancShares, Inc.
OVERVIEW OF HOME BANCSHARES, INC. High Performing Southeastern Regional Bank with a History of Sound Management $17.8B TN NC Total Assets OK Little Rock NM SC AR $9.9B Gross Loans AL GA MS $14.0B LA TX Deposits 15.1% FL Pensacola CET1 Ratio Tampa 160 branches 1.9% Understanding the ROAA HQ: Conway,
Slide 6: Home BancShares Executive Leadership
HOME BANCSHARES EXECUTIVE LEADERSHIP 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 Co
Slide 7: Key Differentiators to Our Story
KEY DIFFERENTIATORS TO OUR STORY Commitment to Aligned Interests Financial Strength Significant insider ownership from the We prioritize capital Chairman and other Board positioning and a strong members align all reserve; will never compromise stakeholder interest our underwriting philosophy (greate
Slide 8: Proven Track Record with Nearly Two Decades of Successful M&A
PROVEN TRACK RECORD WITH NEARLY TWO DECADES OF SUCCESSFUL M&A 2003 2005 2008 2010 2012 2013 Community Bank Twin City Bank Centennial Bank Old Southern Bank Vision Bank Liberty Bancshares, Inc. Cabot, AR North Little Rock, AR Little Rock, AR Orlando, FL Panama City, FL Jonesboro, AR Marine Bank Wakul
Slide 9: Expansion into High Growth Texas Markets
EXPANSION INTO HIGH GROWTH TEXAS MARKETS Expansive Geographic Footprint Enhancing Our Presence in High Growth Markets Amarillo Austin Dallas Destin TN NC OK Amarillo Little Rock NM SC AR AL MS GA Dallas TX LA Fayetteville Fort Myers Fort Smith Lakeland HOMB Austin Happy FL Pensacola Bancshares Tampa
Slide 10: Positioned to Benefit from Demographic Growth Trends
POSITIONED TO BENEFIT FROM DEMOGRAPHIC GROWTH TRENDS 2 2 2 Deposits: $8.0B Deposits: $5.3B Deposits: $5.4B $25B 1 Total Assets 2 2 2 Market Rank: 17 Market Rank: 25 Market Rank: 6 Population: 21.9M Population: 29.6M Population: 3.0M $13B Population Growth: 4.6% Population Growth: 5.3% Population Gro
Slide 11: Financial Highlights
Financial Highlights 11
Slide 12: Historical and Pro Forma Balance Sheet Trends
HISTORICAL AND PRO FORMA BALANCE SHEET TRENDS Net Loans ($M) Deposits ($M) Assets ($M) 24,536 19,470 17,765 16,399 15,302 15,032 14,450 14,003 13,146 12,726 11,278 10,963 10,975 10,900 10,768 10,221 10,389 9,808 9,662 7,308 6,942 2016 2017 2018 2019 2020 2021 PF 2016 2017 2018 2019 2020 2021 PF 2016
Slide 13: Strong Historical Operating Metrics and Shareholder Return
STRONG HISTORICAL OPERATING METRICS AND SHAREHOLDER RETURN 1 Net Income ($M) Return on Average Equity (ROAE) (%) 14.1 300.4 13.2 289.5 12.3 12.0 245.7 (Actual) 214.4 8.6 8.2 177.1 135.1 2016 2017 2018 2019 2020 2021 YTD 2016 2017 2018 2019 2020 2021 YTD 1 2 Return on Average Assets (ROAA) (%) Effici
Slide 14: Pro Forma Revenue Mix – Nine Months Ending 9/30/2021
PRO FORMA REVENUE MIX – NINE MONTHS ENDING 9/30/2021 (1) HOMB HAPPY Pro Forma Net Net Net Interest Interest Interest Income Income Income 80% 80% 78% $539.6M $190.2M $725.3M Fee Income Fee Income Fee Income 20% 20% 22% Trust, Wealth & Service Mortgage Trust & Wealth Insurance Charges Fees 15% Servic
Slide 15: Well Positioned Loan and Deposit Portfolio
WELL POSITIONED LOAN AND DEPOSIT PORTFOLIO (1) HOMB HAPPY Pro Forma 1-4 Family Multifamily C&I PPP C&I C&D 12.9% 2.8% 17.1% 3.4% 16.9% 13.2% Consumer Farm & Ag. PPP & Other 2.7% 13.8% 9.9% Farm & Ag. Consumer Farm & C&D 5.2% & Other Ag. 2.1% 14.8% Consumer $9.9B $3.5B $13.4B 1.4% & Other PPP 5.64% 5
Slide 16: Historical Asset Quality Trends
HISTORICAL ASSET QUALITY TRENDS 1 NPLs / Total Loans (%) NPAs / Assets (%) ACL / Total Loans (%) 2.41 2.19 1.08 1.07 0.98 0.94 0.85 0.81 0.66 0.58 0.51 0.50 0.51 0.48 0.44 0.43 0.43 0.29 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Q3 Q3 Q3 1 1 NCOs / Avg
Slide 17: Cash and Securities Portfolio
CASH AND SECURITIES PORTFOLIO HOMB Available for Sale Investment Securities Portfolio • Approximately $3.3B of cash and equivalents • Approximately $3.2B of securities, primarily consisting of mortgage-backed and government sponsored securities Commerial Residential Mortgage-Backed • Weighted averag
Slide 18: Home BancShares Liquidity Position and Sources
HOME BANCSHARES LIQUIDITY POSITION AND SOURCES • 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 remain
Slide 19: Historical Consolidated Capital Ratios
HISTORICAL CONSOLIDATED CAPITAL RATIOS Leverage Ratio CET1 Ratio Tier 1 Ratio 19.6% Total Capital Ratio 18.7% 17.8% 16.4% 15.7% 15.3% 15.1% 15.1% 14.2% 14.2% 14.0% 13.4% 13.0% 13.0% 12.4% 11.9% 12.0% 11.5% 11.3% 11.3% 11.3% 11.0% 10.9% 10.9% 10.6% 10.4% 10.0% 9.9% 2016Y 2017Y 2018Y 2019Y 2020Y 2021Q
Slide 20: Pro Forma Capital for Potential New Issuance
PRO FORMA CAPITAL FOR POTENTIAL NEW ISSUANCE 1 Illustrative Pro Forma Adjustments Actual New Pro Forma Illustrative 2021Q3² Issuance New Issue Repayment of Debt³ Pro Forma Common Equity 2,736 2,736 2,736 Plus: CECL Phase-in 56 56 56 Less: AOCI (26) (26) (26) Less: Disallowed Intangibles (999) (999)
Slide 21: Double Leverage and Interest Coverage
DOUBLE LEVERAGE AND INTEREST COVERAGE Double Leverage For the Year Ended December 31, 9/30/2021 Dollar Amounts in Millions 2017 2018 2019 2020 HOMB + Happy = Pro Forma Investment in Subsidiaries $2,512 $2,644 $2,759 $2,800 $2,844 $1,113 $3,957 Consolidated Equity $2,204 $2,350 $2,512 $2,606 $2,736 $
Slide 22: Appendix
Appendix 22
Slide 23: Our Values Are Focused on Being a Strong Corporate Citizen
OUR VALUES ARE FOCUSED ON BEING A STRONG CORPORATE CITIZEN FOR ALL OUR STAKEHOLDERS OUR VISION: OUR VALUES: OUR MISSION: We put service first, so our • Dedication to consistent Through our community customers can trust us as the quality service banking philosophy, we are premier bank in the dedicate
Slide 24: COVID-19 and PPP Update
COVID-19 AND PPP UPDATE Loan Deferrals Balance LTV • As of September 30, 2021, the Company has $229 million of deferrals on 38 loans as allowed under Section 4013 of Hotel $952M 55.5% the CARES Act Hotel • All of the customers currently on deferment chose principal $159M 37.9% Construction deferment
Slide 25: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY • 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. Sensitivity of • This analysis indicates the impact of changes in net Net Interest Income (%) i
Slide 26: Kroll Bond Rating Agency Summary
KROLL BOND RATING AGENCY SUMMARY Kroll Bond Rating Agency Ratings Summary Outlook Stable Home BancShares, Inc. Rating Senior Unsecured Debt BBB+ Subordinated Unsecured Debt BBB Short-Term Debt K2 Centennial Bank Rating Long-Term Deposits A- Senior Unsecured Debt A- Subordinated Unsecured Debt BBB+ S
Slide 27: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Efficiency Ratio 2016 2017 2018 2019 2020 2021 YTD Net Interest Income : [A] $405,958 $455,905 $561,013 $563,217 $582,555 $433,951 Federal Tax ( FTE ) Adjustment : [B] 7,924 7,856 5,513 5,255 6,015 5,343 Net Interest Income - FTE : [C] = [A] + [B] 413,882 463,761 566,526 568,