Home Bancshares (Conway, AR) (NYSE:HOMB) Earnings Call Presentation

Acquisition Overview - Home BancShares, Inc (HOMB) is acquiring Mountain Commerce Bancorp, Inc (MCBI)[1] - The transaction is expected to be accretive to EPS, BVPS, and TBVPS[5] - The deal provides HOMB with a meaningful entrance into high-growth Knoxville, Nashville, and Johnson City MSAs[5] - The transaction is financially compelling and low-risk, with conservative assumptions for credit mark, one-time costs, and expense savings[5] Transaction Terms - The consideration mix is 100% HOMB stock[7,18] - The implied price per share is $2351[18] - The aggregate transaction value is $1501 million[18] - The price/TBV is 105%[18] - The price/2026E EPS is 81x[18] Financial Highlights of MCBI - MCBI has $18 billion in assets[6] - MCBI has $16 billion in deposits[6] - MCBI has $15 billion in gross loans[6,7] - MCBI's average ROAA from 2021-2024 was 102%[6] - MCBI's average ROATCE from 2021-2024 was 123%[6] - MCBI's efficiency ratio is 552%[6] - MCBI's YoY NIM expansion was 43 bps[6] Pro Forma Impact - The acquisition is expected to increase ROATCE by +35bps[20] - 2026E EPS accretion is projected to be 14%[20] - 2027E EPS accretion is projected to be 30%[20] - BVPS accretion is projected to be 07%[20] - TBVPS accretion is projected to be 02%[20] - The CET1 ratio at closing is projected to be 159%[20] - The total capital ratio at closing is projected to be 185%[20]