Home BancShares, Inc. Beefs Up Marine Business Through Loan Portfolio Acquisition

/EIN News/ -- CONWAY, Ark., Feb. 19, 2020 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, (“Centennial”), today announced the signing of a definitive agreement to acquire LH-Finance, the marine lending division of Bridgeport, Connecticut based People’s United Bank, N.A. (“People’s United”). LH-Finance, which was acquired by People’s United as part of its recent acquisition of United Financial Bancorp, the holding company for United Bank, provides retail financing to end customers and wholesale financing to boat dealers. Under the terms of the agreement, Centennial Bank will acquire approximately $405 million in LH-Finance loan balances from People’s United. 

Upon completion of the acquisition, this portfolio of loans will be housed within Centennial’s Shore Premier Finance division (“Shore”). Shore is a $517 million specialized marine lending division of Centennial Bank with a national platform for floor plan and retail loans. Shore will be responsible for servicing the acquired loan portfolio and originating new loan production.

“We have just returned from the Miami boat show, working with our Shore Premier Finance team,” said John Allison, Home’s Chairman, CEO and President. “The excitement and enthusiasm from manufacturers and dealers is very contagious. Looks like perfect timing for HOMB.”

“The consolidation of LH-Finance into Shore Premier Finance is a natural evolution of two marine finance specialty teams that share common roots,” added Shore Premier Finance President John Marshall. “Further, this is an exciting opportunity to leverage scale and our unique business model to provide even greater service to our manufacturer, wholesale dealer, and retail customers.”

The acquisition is expected to close in the first quarter of 2020 and is subject to certain customary closing conditions set forth in the purchase agreement. In connection with this acquisition, Centennial has notified the Arkansas State Bank Department of its plans to establish a new loan production office in Baltimore, Maryland. 

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.”

This release contains forward-looking statements which include, but are not limited to, statements about the benefits of the Company’s acquisition of LH-Finance, 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 possibility that the acquisition does not close when expected or at all because required conditions to closing are not received or satisfied on a timely basis or at all; (ii) 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 LH-Finance 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 LH-Finance operate; (iii) the ability to promptly and effectively integrate the business of LH-Finance into the Company; (iv) the reaction to the transaction of the Company’s and LH-Finance’s customers, employees and counterparties; and (v) diversion of management time on acquisition-related issues. Additional factors that might affect the Company’s financial results are described in reports the Company files with the Securities and Exchange Commission (the “SEC”), including those factors set forth in its Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on February 26, 2019.                                                           

FOR MORE INFORMATION CONTACT

Home BancShares, Inc.                                                  

Donna Townsell                                                                

Investor Relations Officer

(501) 328-4625