Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Home Bancshares, Inc. (Click for buyer financial information)
Target:  Community Financial Group, Inc. (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 7/30/03   Announced Deal Value ($M) 43.0
Status Completed   Announced Deal Value Per Share ($) NA
Completion Date 12/1/03      
 
Deal Summary
Home Bancshares and minority-controlled affiliate TCBancorp have agreed to acquire Community Financial Group. The deal is part of a push by Home Bancshares to raise its profile as a public company, Home Bancshares Chairman John Allison told the Arkansas Business journal. The preferred stock to be issued by Home Bancshares in consideration for Community is automatically convertible into common stock after 30 months, the paper reported, and will therefore push Home Bancshares above 500 shareholders and subject it to full reporting requirements with the SEC.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 160.80 157.00
Price / Tangible Book (%) 164.51 161.58
Price / LTM EPS (x) 44.70 36.94
Price / Deposits (%) 17.09 15.47
Price / Assets (%) 13.92 12.91
Tang Book Premium / Core Deposits (%) 8.04 7.97


Deal Terms

Description of Consideration
Home Bancshares and minority-owned unit TCBancorp acquired Community for an aggregate $43 million, 49% payable in cash and 51% in preferred stock. Home Bancshares will acquire an 80% stake and TCBancorp a 20% stake.
Accounting Method NA   Lockup Agreement No
In-State Transaction? Yes   Strike Price ($) NA
Merger of Equals? No   % of Shares Outstanding NA
Geographic Expansion? Partial Overlap   Shares Under Option NA
Goodwill Generated ($000) NA   Core Deposit Intangibles ($000) NA
Estimated Cost Savings (%) NA   Est. Restructuring Charges ($000) NA
Termination Fee ($000) NA  
         
Consideration Breakout
Cash ($M)   21.1
Common Stock ($M)   0
Common Shares Issued   0
Preferred Stock ($M)   21.9
Preferred Shares Issued   2,176,291
Debt ($M)   0
Other ($M)   0

Deal Advisers

Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes Stephens Inc.
 
Seller Yes DD&F Consulting Group
Mercer Capital Management Inc.
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Mitchell Williams Selig Gates
 
Seller Yes Gerrish Smith Tuck PC

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