Home BancShares, Inc. Announces Acquisition of Loan Portfolio and Creation of Marine Finance Division
July 02 2018 - 8:15AM
Home BancShares, Inc. (NASDAQ:HOMB) (“Home” or the “Company”),
parent company of Centennial Bank, (“Centennial”), today announced
the acquisition of Shore Premier Finance (“SPF”), a division of
Union Bank & Trust of Richmond, Virginia (“Union”), the bank
subsidiary of Union Bankshares Corporation (NASDAQ:UBSH), effective
as of the end of the day on June 30, 2018. Under the terms of the
agreement, Union received proceeds from the transaction consisting
of approximately $374.5 million in cash, subject to certain
post-closing adjustments, and 1,250,000 shares of Home common
stock.
Shore Premier Finance currently provides direct
consumer financing to United States Coast Guard (“USCG”) registered
high-end sail and power boats. Additionally, SPF provides
inventory floor plan lines of credit to marine dealers, primarily
those selling USCG documented vessels. As of the closing of
the acquisition, SPF had approximately $384.2 million in total
assets, including $383.4 million in total loans.
This portfolio of loans will now be housed in a
division of Centennial known as Shore Premier Finance. The
Shore Premier Finance division of Centennial will be responsible
for servicing the acquired loan portfolio and originating new loan
production.
“We’re always looking at acquisition
opportunities to provide the strongest risk adjusted return for our
investors,” said John Allison, Home’s Chairman. “The Shore
Premier Finance team has built a solid foundation in the marine
finance space and we look forward to providing them the opportunity
and resources to further develop that brand.”
“Divesting our national scope marine
finance business obtained in the recent Xenith Bank acquisition,
known as Shore Premier Finance, better enables Union to
focus on our core businesses and execute our strategic
priorities,” said John C. Asbury, president and CEO of Union
Bankshares Corporation. “Our teammates built a solid
reputation in this specialty lending category at Shore Premier and
will find a welcoming home at Centennial Bank.”
“This marine loan portfolio provides both
geographic and collateral-type diversification for the Company,”
said Tracy French, Centennial’s Chief Executive Officer. “We
envision this being the foundation of a meaningful presence in the
marine financing market for Home.”
In connection with this acquisition and the
creation of the Shore Premier Finance division of Centennial,
Centennial has notified the Arkansas State Bank Department of its
plans to establish a new loan production office in Chesapeake,
Virginia. The loan production office is anticipated to open
in July 2018, pending confirmation of no objection. Once the
loan production office has been established, the Shore Premier
Finance division of Centennial will continue its vision to build
out a national lending platform focusing on commercial and consumer
marine loans.
Additional information regarding the acquisition
is provided in a supplemental presentation available on the
Company's website at www.homebancshares.com, under the “Investor
Relations” section.
General
Home BancShares, Inc. is a bank holding company,
headquartered in Conway, Arkansas. Its wholly-owned subsidiary,
Centennial Bank, provides a broad range of commercial and retail
banking plus related financial services to businesses, real estate
developers, investors, individuals and municipalities. Centennial
Bank has branch locations in Arkansas, Florida, South Alabama and
New York City. The Company’s common stock is traded through the
NASDAQ Global Select Market under the symbol “HOMB.”
Headquartered in Richmond, Virginia, Union
Bankshares Corporation (NASDAQ:UBSH) is the holding company for
Union Bank & Trust, which has 147 branches, 7 of which are
operated as Xenith Bank, a division of Union Bank & Trust of
Richmond, Virginia, and approximately 216 ATMs located throughout
Virginia and in portions of Maryland and North Carolina.
Non-bank affiliates of the holding company include: Old Dominion
Capital Management, Inc. and Dixon, Hubard, Feinour, & Brown,
Inc., which both provide investment advisory services, and Union
Insurance Group, LLC, which offers various lines of insurance
products.
This release contains forward-looking statements
which include, but are not limited to, statements about the
benefits of the Company’s acquisition of SPF, including the
Company’s plans, expectations, goals and outlook for the future.
Statements in this press release that are not historical facts
should be considered forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements of this type speak only as of the date
of this news release. By nature, forward-looking statements involve
inherent risk and uncertainties. Various factors could cause actual
results to differ materially from those contemplated by the
forward-looking statements, including, but not limited to, (i) the
risk that the benefits from the transaction may not be fully
realized or may take longer to realize than expected, including as
a result of any delay in or failure to receive regulatory approval
of the proposed loan production office through which SPF will be
operated, changes in general economic and market conditions,
interest and exchange rates, monetary policy, laws and regulations
and their enforcement, and the degree of competition in the
geographic and business areas in which the Company and SPF operate;
(ii) the ability to promptly and effectively integrate the business
of SFP into the Company; (iii) the reaction to the transaction of
the Company’s and SPF’s customers, employees and counterparties;
and (iv) diversion of management time on acquisition-related
issues. Additional information on factors that might affect the
Company’s financial results is included in its Annual Report on
Form 10-K for the year ended December 31, 2017 filed with the SEC
on February 27, 2018.
FOR MORE INFORMATION CONTACT
Home BancShares,
Inc.
Donna Townsell Investor Relations Officer
(501) 328-4625
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