Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Home BancShares, Inc. (Click for buyer financial information)
Target:  Broward Financial Holdings, Inc. (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 6/11/14   Announced Deal Value ($M) 34.0
Status Completed   Announced Deal Value Per Share ($) NA
Completion Date 10/23/14      
 
Deal Summary
Conway, Ark.-based Home BancShares Inc. unit Centennial Bank has acquired Fort Lauderdale, Fla.-based Broward Financial Holdings Inc. Book ratios at completion are based on Broward Financial Holdings Inc.'s October 23, 2014 Small parent equity of $20,407,471 & Earnings ratio is based on June 30, 2014 LTM net income of $1,704,000. Home BancShares Inc. will enter Broward County, Fla., with two branches to be ranked No. 29 with a 0.30% share of approximately $41.95 billion in total market deposits.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 198.61 164.90
Price / Tangible Book (%) 198.61 164.90
Price / LTM EPS (x) 19.93 19.75
Price / Deposits (%) 23.47 23.20
Price / Assets (%) 20.16 18.72
Tang Book Premium / Core Deposits (%) 16.72 12.47


Deal Terms

Description of Consideration
Home BancShares Inc. issued 1,020,824 shares of its common stock and paid approximately $3,306,000 in cash for all of the outstanding shares of Broward Financial Holdings Inc. Home BancShares Inc. has also agreed to pay the Broward Financial Holdings Inc. shareholders at an undetermined date up to approximately $751,000 in additional consideration. The amount and timing of the additional payment, if any, will depend on future payments received or losses incurred by Centennial Bank from certain current Broward Bank of Commerce loans. Target financials are for Broward Bank of Commerce.
Accounting Method NA   Lockup Agreement No
In-State Transaction? No   Strike Price ($) 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) 1,711
Termination Fee ($000) NA  
         
Consideration Breakout
Cash ($M)   3.3
Common Stock ($M)   29.6
Common Shares Issued   1,020,824
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 Yes Hovde Group LLC
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Mitchell Williams Selig Gates
 
Seller Yes Smith Mackinnon PA

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