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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<p>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 + __DOCTEXT__Acirc; for __DOCTEXT__Acirc; 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 / Asse