NEW YORK (The Deal) -- Home BancShares (HOMB), the Conway, Ark.-based bank holding company for Centennial Bank, will continue eying potential bank targets in its markets in Arkansas, Florida and Alabama, said its chairman, John Ellison.
The bank with $7.5 billion in assets is currently in acquisition talks with one bank in Arkansas and another bank in Florida, Ellison revealed, though he declined to name the banks. Home BancShares is interested in targets with about $1 billion in assets, he said. The bank would like to do three more deals this year, though it's more likely that it will consummate two deals, Ellison said.
Home BancShares was recently outbid in a deal for a Florida bank by another institution, said Ellison, though he also did not want to name the auction or the banks involved as the deal has not yet been announced, he said. Home BancShares decided to pass on the deal as the bank was too expensive, he said, adding that such a deal would have been dilutive to the bank's shares. Home BancShares' stock is trading at 3 times tangible book value.
Analyst David Bishop of Drexel Hamilton LLC said Home BancShares is a regional consolidator and will continue to look at banks with from $500 million to $2 billion in assets in its markets. In the near term, it will likely consider acquisitions in Florida, namely in Orlando and Tampa, Bishop said.
According to the Federal Deposit Insurance Corporation's database, there are five institutions in and around Tampa and Orlando with from $500 million to $2 billion in assets including Tampa-based Bay Cities Bank, Orlando-based Seaside National Bank & Trust, Tampa-based The Bank of Tampa, Orlando-based CNLBancshares (CNLB) and Saint Petersburg-based C1 Financial (BNK).