Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Home Bancshares, Inc. (Click for buyer financial information)
Target:  Centennial Bancshares, Inc (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 8/24/07   Announced Deal Value ($M) 29.6
Status Completed   Announced Deal Value Per Share ($) 379.19
Completion Date 1/1/08      
 
Deal Summary
Conway, Ark.-based Home Bancshares Inc. has agreed to acquire Kingsland, Ark.-based Centennial Bancshares Inc. Home Bancshares Inc. will expand in Arkansas with 6 branches to be ranked No. 9 with a 3.2% share of $44.2 billion in total market deposits. Ratios are based on June 30, 2007 small parent Equity and LTM Net Income of $15,332,000 and $1,153,000, respectively. Target's financials are for Centennial Bank.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 193.22 175.64
Price / Tangible Book (%) 218.23 198.37
Price / LTM EPS (x) 25.69 24.14
Price / Deposits (%) 17.73 16.10
Price / Assets (%) 14.90 12.44
Tang Book Premium / Core Deposits (%) 19.43 15.18


Deal Terms

Description of Consideration
Home Bcshs Inc. issued 16.8153 shares for ea. share of Centennial common stock, subj. to 2% of Centennial shareholders receiving cash. Centennial may receive a contingent payment of up to $4M, based on future earnings. Finally Home Bcshs Inc paid $3.1 million in cash on March 11, 2009 for contingent payment.
Accounting Method NA   Lockup Agreement No
In-State Transaction? Yes   Strike Price ($) NA
Merger of Equals? No   % of Shares Outstanding NA
Geographic Expansion? Market Expansion   Shares Under Option NA
Goodwill Generated ($000) NA   Core Deposit Intangibles ($000) NA
Estimated Cost Savings (%) NA   Est. Restructuring Charges ($000) 100
Termination Fee ($000) NA  
Exchange Ratio
(Common For Common)
16.8153  
         
Consideration Breakout
Cash ($M)   0.5
Common Stock ($M)   23.4
Common Shares Issued   1,287,556
Preferred Stock ($M)   0
Preferred Shares Issued   0
Debt ($M)   0
Other ($M)   0

Deal Advisers

Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes DD&F Consulting Group
 
Seller No NA
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Mitchell Williams Selig Gates
 
Seller No NA

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