June 17, 2015 - Home BancShares Inc. plans to buy Bay Cities Bank, one of the largest banks headquartered in the Tampa Bay area. Home BancShares will pay about $101.6 million to the shareholders of Florida Business BancGroup Inc., the parent company of Bay Cities Bank. About 80 percent of the purchase will be in Home BancShares (NASDAQ: HOMB) common stock, and about 20 percent will be in cash, a statement said. The deal would significantly boost the presence of Home BancShare’s Centennial Bank in Tampa Bay. Bay Cities, with $540.5 million in assets, currently operates six branch locations and a loan production office in the Tampa Bay area, including a newly opened office in Sarasota.
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Hovde Florida M&A Transaction Alert
June 17, 2015
 Transaction Summary
 •  Florida Business BancGroup's, whollyâ€owned subsidiary, Bay Cities Bank has 6 branches: Tampa (3), St. Petersburg (1), Lutz (1) and Sarasota (1)
 •  Greg Bryant (President & CEO of Bay Cities), along with his team, will join Home and focus on building out the greater Tampa Bay franchise
 •  The deal is structured as a fixed price/floating exchange ratio within a 30% band on Home's stock price from now until close of the transaction
 •  Individual shareholder election processâ€can choose 100% stock, 100% cash or any mix of stock and cash as long as the end result is 80% stock/20% cash
 •  This transaction represents Hovde Group's 7th Florida transaction in 2015 and our 63rd in the state since 2003 (the start of last M&A wave)
 Transaction Terms
 Pro Forma Branch Network
 Announced Date:
June 17, 2015Â
 Estimated Closing Date:
Q3Â 2015Â
 Form of Consideration:
80% Stock / 20% CashÂ
 Structure:
Fixed Price/Floating Exchange RatioÂ
 Total Purchase Price:
$102.3Â MillionÂ
 Priceâ€toâ€Tangible Book Value ("TBV"):
177.2%
 Priceâ€toâ€Core TBV (Assumes 8% Capital + $ for $ on Excess):
203.0%
 Priceâ€toâ€LTM Core Earnings:
22.4x
 Priceâ€toâ€2015E Earnings:
21.4x
 Premiumâ€toâ€Core Deposits:
12.9%
 Financial Highlights â€Â YTD 03/31/15
 Tombstone Announcement
 Buyer / Seller:
 HomeÂ
 Bay CitiesÂ
 Headquarters:
ConwayÂ
TampaÂ
 Branches:
AR(86),FL(60),AL(7)
FL(6)Â
 Year Established:
1903Â
1999Â
 Total Assets ($000):
7,513,974
541,049
 Net Interest Margin (%):
4.91
4.14
 Nonâ€Interest Income/ Assets (%):
0.74
0.60
 Nonâ€Interest Expense/ Assets (%):
2.15
2.74
 Efficiency Ratio (%):
41.3
61.9
 ROAA (%):
1.65
0.90
 ROAE (%):
12.16
8.45
 Tangible Common Equity (%):
9.71
10.60
 NPAs / Assets (%):
1.06
2.04
 NPAs (Less TDRs) / Assets (%):
0.65
1.82
 Reserves/ Total Loans (%):
1.11
1.23
 Loan Growth Annualized (%):
3.3
0.4
 Nick Barbarine, Senior Managing Partner
 Michael Timothy, Director
 nbarbarine@hovdegroup.com
 mtimothy@hovdegroup.com
 202.256.4821
 813.380.4401
Hovde Group, LLC initiated this transaction and served as exclusive financial advisor to Florida Business BancGroup, Inc. (Bay Cities Bank)
Home BancShares, Inc. â€Â Conway, AR (NASDAQ: HOMB)
Florida Business BancGroup, Inc. (Bay Cities Bank) â€Â Tampa, FL
has executed a definitive agreement to merge with and into
Hovde Group LLC initiated this transaction and served as exclusiveÂ
financial advisor to Florida Business BancGroup, Inc.
June 17, 2015
Bay Cities
Home
has executed a definitive agreement to merge with and into
Conway, Arkansas
Tampa, Florida