SNL BT BankValuationModel v1

Guide to the Bank Valuation Model
The bank valuation model uses Asset growth rates, SNL's Performance Analytics, and discounted cash flow analysis to estimate the value of a firm.
Legend
Black font = Pulled from Database or Calculated
Blue font = Writable Input
Datasets: Regulated Depositories and Market Data
Users can input public or private banks into this model using Ticker or SNL ID.
Required Inputs:
Company: This is the company that you would like to estimate the value for. This can be from the perspective of an investor or buyer looking at an outside company, or used introspectively by a Banks management team to evaluate the impact of market or strategic changes on thei
firm, a first step or second check when considering acquisitions, or to compare themselves to market valuations.
Period: The is the "base period" for the model, the date selected here will populate the second column in the report, the first column being a historical reference. If you choose a period that is not a Year End the column to the right of the base period will be used to adjust the model t
on year end terms, and will represent the remainder of the base period's year. Example: Period = 2012Q1 then the column to the right of the base will be the 9 months remaining in 2012Y.
Discount Rate: The rate at which the cash flows determined by the model will be discounted back to present value. This ratio can be based on a combination of market conditions and risk as well as a companys cost of equity.
Terminal Value Multiple (TVM): This input has two steps. First choose if you would like to work with a Price to Earnings Multiple (P/E) or a Price to Tangible Book Multiple (P/TB), then input your desired multiple.
Stand Alone Model Methodology:

The bank valuation model pulls two periods of data, your base period and one historical reference period.
Future estimated periods are projected forward either by simply carrying base period values forward or by applying some simple logic surrounding max/min values.
Total Assets is calculated over time by the Annual Asset Growth Rate, the first input in the model. This growth rate is capped at 10% and has a floor of 0%, so growth rates outside that range will not be carried forward automatically, but can be input.
Tangible Assets (TA) is determined by Total Assets Intangible Assets. Users can manipulate TA by changing Amortization of Intangibles, which is carried forward as a constant from the Base Period. Intangibles will never be less than the amount of Goodwill in the base period by d
Return on Average Assets (ROAA) is driven by a performance analysis (DuPont Analysis). Within this portion of the model users can modify the composition of Earning Assets and their Yields, the composition of Interest Bearing Liabilities and their costs as well as Non-Interest
Income/Expense and Other items that impact Net Income. All values are carried forward with the exception of Gain on Asset Sales/Avg Assets because assets sales are not considered normal course of business for a bank.
Net Income added to the Ending Tangible Common Equity (TCE), which is initially carried forward from the ending balance for your base period, returns Tangible Common Equity before Distributions. Ending (Required) TCE/TA is an input carried forward from your base year.
Depending on whether the user thinks the company should hold more or less capital will determine how this ratio is changed. The difference in $000 between TCE Before Distributions and Ending (Required) TCE is what determines the firms cash flows for a given period.
Capital Distributions (Infusions), or cash flows, for each period are then discounted back into present value terms. The terminal value multiple is applied to Net Income if using the TVM P/E model and to Target Tangible Common Equity if using the TVM P/TB model. Terminal value i
discounted back and then added to all discounted cash flows to get your total firm value.
Sensitivity Analysis
The sensitivity analysis table shows multiple varied combinations of discount rates and terminal values. This will demonstrate how Firm Value would change by changing those inputs without actually having to run the model multiple times.
The sensitivity analysis graph shows multiple discount rates assuming Terminal Value Multiple is held constant at the user input rate.
Model Projections and Market Data
For public companies you can see the model projections for stock price, P/B, P/TB and FactSet earnings estimates so you can compare your model assumptions to the most recent actual market data.
Acquisition Model Methodology:

To value a bank from the perspective of an acquisition select the 'Acquisition_Model' tab. When selecting the Acquisition model you will introduce two new inputs, and three new fields within the model grid.
Acquisition Inputs:
Tax Rate (%): This is the tax rate applied to cost savings because they are calculated before taxes and then added to post tax Net Income.
One Time Deal Expense (% of Assets): This is the one time price you would expect to pay for the bank as a percent of the bank's total assets in the base period. This expense is one time and occurs in the
period immediately after the base period.
M&A Inputs:
To estimate the value of a bank based on prior transaction pricing, enter an announcement date range, region, and target total asset range in Step 9. This is used to select deals that would be considered
comparable in terms of time frame, geographic location, and size using total assets of the target company. In step 10, select the statistic to be applied to the deal ratios in the calculation of the firm's value.
To estimate value on a per share basis, the model uses most recently available common shares outstanding. If the bank is not public, the Shares Outstanding in cell P133 can be edited to calculate per share values.
See results of the comparable deal metrics in the M&A Comparable Deal Metrics section.
Fields:
Cost Savings Per Interest Expense (%) represents the synergies and savings the user would expect from acquiring the focus bank. This value can change in each period, and is used to calculate
Cost Savings After Tax. The savings are added into Net Income within the Bank Valuation Model. One Time Deal Expense as a dollar value is calculated by the user input for One Time Deal Expense
as a % of Total Assets. This is deducted from firm value in the period immediately following the base period.
r looking at an outside company, or used introspectively by a Banks management team to evaluate the impact of market or strategic changes on their own
being a historical reference. If you choose a period that is not a Year End the column to the right of the base period will be used to adjust the model to be
of the base will be the 9 months remaining in 2012Y.
e based on a combination of market conditions and risk as well as a companys cost of equity.
nd has a floor of 0%, so growth rates outside that range will not be carried forward automatically, but can be input.
gibles, which is carried forward as a constant from the Base Period. Intangibles will never be less than the amount of Goodwill in the base period by default.
modify the composition of Earning Assets and their Yields, the composition of Interest Bearing Liabilities and their costs as well as Non-Interest
vg Assets because assets sales are not considered normal course of business for a bank.
base period, returns Tangible Common Equity before Distributions. Ending (Required) TCE/TA is an input carried forward from your base year.
rence in $000 between TCE Before Distributions and Ending (Required) TCE is what determines the firms cash flows for a given period.
e multiple is applied to Net Income if using the TVM P/E model and to Target Tangible Common Equity if using the TVM P/TB model. Terminal value is also
m Value would change by changing those inputs without actually having to run the model multiple times.
Home BancShares, Inc.
Provided by SNL Financial
Projected Value of Firm ($000)
663,010
Dollars in ($000)
2011Y Act.
Total Assets
2012L3 Act.
3,604,117
Annual Asset Growth Rate (%)
3,887,909
(4.21)
Amortization of Intangibles
Intangible Assets
Tangible Assets (TA)
7.34
2,723
941
80,754
78,031
77,090
Yield/ Cost Spread (%)
3,801,028
3,873,247
4,166,593
4,481,271
4,818,847
5,179,219
3,746,013
3,923,678
4,104,759
4,406,048
4,729,452
5,076,594
3.88
3.89
3.89
3.89
3.89
1.56
4.56
4.43
Yield on Earning Assets (%)

Asset-weighted Loan Yield (%)
Yield on Loans and Leases (%)

Avg Loans/Avg Earning Assets (%)
Asset-weighted Securities Yield (%)
4.44
1.41
1.41
4.57
1.41
4.57
4.45
4.57
4.45
4.45
1.41
4.57
4.45
5.56
5.29
5.31
5.31
5.31
5.31
5.00
4.73
4.74
4.74
4.74
4.74
6.48
6.48
6.48
6.48
73.16
73.16
73.16
73.16
73.16
0.51
2.43
0.52
2.43
0.52
0.52
2.43
2.43
0.52
2.43
21.30
21.30
21.30
21.30
0.06
0.05
0.05
0.05
0.05
0.05
Cost of Interest Bearing Liab (%)
Liab-weigh Cost of Int-bear Dep (%)
0.83
0.83
0.83
0.83
0.83
5.55
5.54
5.54
5.54
5.54
5.54
1.13
0.85
0.86
0.86
0.86
0.86
0.61
0.67
0.61
0.67
0.61
0.61
0.67
0.67
0.61
0.67
91.22
91.22
91.22
91.22
91.22
0.29
0.25
0.25
0.25
0.25
0.25
Gain on Net Int Position/Avg EA (%)
0.05
0.83
0.94
Avg Borrowing/Avg Int-bear Liab (%)
2.43
5.95
90.37
Cost of Borrowings (%)
0.52
21.30
1.00
0.84
Liability-wtd Borrowing Cost (%)
4.74
6.48
73.16
21.30
Avg Other Assets/ Avg EA (%)
4.45
5.31
6.48
2.79
Yield on Other Assets (%)
3.89
4.57
76.33
17.72
Asset-weighted Other Asset Yield (%)
1.41
6.58
0.50
0.86
0.61
0.67
91.22
0.25
2.90
2.81
2.81
2.81
2.81
2.81
2.81
9.63
8.78
8.78
8.78
8.78
8.78
8.78
0.15
0.12
1.13
0.85
0.12
0.86
0.12
0.12
0.86
0.86
0.12
0.86
0.12
0.86
12.59
14.07
14.07
14.07
14.07
14.07
14.07
84.85
85.22
85.22
85.22
85.22
85.22
85.22
Noninterest Income/ Avg Assets (%)
1.03
Fiduciary Activities/Avg Assets (%)
1.04
0.00
Invt Bank, Adv & Oth/Avg Assets (%)
0.00
0.02
Venture Capital/ Avg Assets (%)

Trading Activities/Avg Assets (%)
Gain on Asset Sales/Avg Assets (%)

Gain on Loans Sales/Avg Assets (%)
Gain on OREO Sales/ Avg Assets (%)

Gain on Other Asset Sales/ Avg Assets (%)
Net Servicing Fees/ Avg Assets (%)
0.03
Securitization Income/ Avg Assets (%)
Insur Commissions & Fees/ Avg Assets (%)
Ins&Reinsur Undrwrt/ Avg Assets (%)

Other Insur Inc/ Avg Assets (%)
Other Noninterest Inc/ Avg Assets (%)

Noninterest Expense/ Avg Assets (%)
Salary Exp/Avg Assets (%)
Amort of Intangibles/Avg Assets (%)
Other Noninterest Exp/ Avg Assets (%)

Gain on Sale of Sec/ Avg Assets (%)
Loan Loss Provision/Avg Assets (%)

Income Tax/ Avg Assets (%)
After-tax Items/ Avg Assets (%)

Beginning Tangible Common Equity (TCE)
Net Income
Earnings Per Share ($)
0.03
0.03
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.08
0.14
0.00
0.00
0.00
0.00
0.09
0.13
0.00
0.00
0.00
0.00
(0.02)
0.01
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.39
0.38
0.38
0.38
0.38
0.38
0.05
0.05
0.05
0.05
0.05
0.05
0.00
0.00
0.00
0.00
0.00
0.00
0.05
0.05
0.05
0.05
0.05
0.05
0.89
0.00
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.38
0.05
0.00
0.05
0.50
0.43
0.43
0.43
0.43
0.43
0.43
2.57
2.46
2.46
2.46
2.46
2.46
2.46
1.17
1.17
1.17
1.17
1.17
0.37
0.34
0.34
0.34
0.34
0.34
0.08
0.07
0.07
0.07
0.07
0.07
0.95
0.88
0.88
0.88
0.88
0.88
0.06
0.06
0.06
0.06
0.06
0.06
0.10
0.10
0.10
0.10
0.10
0.10
0.81
0.87
0.87
0.87
0.87
0.87
0.00
49.56
47.45
54,741
60,250
TCE before Distributions
TCE/TA before Distributions (%)
0.00
50.00
423,097
11.13
Capital Distributions (Infusions)
0.00
50.00
50.00
0.00
50.00
0.07
0.88
0.06
0.10
0.87
0.00
50.00
431,092
463,742
498,765
536,338
13,831
57,877
62,125
66,685
71,580
0.49
2.04
2.19
2.35
2.53
436,928
488,969
525,867
565,450
607,918
431,092
11.13
5,836
Present Value of Capital Distributions
0.00
1.17
0.34
423,097
11.28
405,783
11.48
5,673
Present Value of Terminal Value

0.03
0.89
0.00
0.00
0.00
Efficiency Ratio (%)
0.89
0.00
0.00
1.17
Office & Equipment/Avg Assets (%)
0.89
0.00
0.00
0.00
Deposit Svc Chgs/ Avg Assets (%)
0.89
0.00
0.00
0.00
Ending (Required) TCE/TA (%)
7.34
2,723
83,477
4.57
Ending (Required) TCE
7.34
2,723
Net Interest Margin (Non-FTE) (%)
Avg Earning Assets/ Avg Assets (%)
7.34
2016Y Est.
5,256,309
681
3.88
Net Interest Position/Avg EA (%)
7.34
2015Y Est.
4,896,878
86,200
1.50
2014Y Est.
4,562,025
86,881
Net Interest Income/Average Assets (%)
Avg Int-bear Deps/ Avg Int-bear Liab
1.84
2013Y Est.
4,250,070
2,723
ROAA (%)
Cost of Int Bearing Deposits (%)
3,959,447
68,283
3,535,834
Avg Securities/Avg Earning Assets (%
Remainder of 2012Y
Est.
23.68
2,827
Average Assets
Yield on Debt and Equity Securities (%)
Projected Per Share Value of Firm ($)
11.74
11.73
463,742
498,765
11.13
11.13
25,227
27,102
21,895
21,002
11.73
536,338
11.13
29,112
20,143
11.74
576,447
11.13
31,471
19,442
574,855
$
663,010
Current Market Data
Sensitivity Analysis
Model Projections
938,346
Market Cap ($000)

740,000
720,000
33.52
Est. Firm Value per Share ($)
Price/Book (x)
1.85
Est. Firm Value/Book (x)
Price/Tang Book (x)
2.23
Est. Firm Value/Tang Book (x)
2012 FactSet Est.
700,000
680,000
663,010
23.68
1.30
1.57
Est. Firm Value ($000)
Stock Price ($)
2012 Est.
Mean EPS ($)
2.27
Price/EPS (x)
14.78
2.12
11.17
EPS ($)
Value/EPS (x)
660,000
Projected Firm Value Sensitivity Analysis ($000)
640,000
Discount Rate
620,000
600,000
580,000
Terminal
Value
Multiple
560,000
10%
11%
12%
13%
Discount Rate
14%
663,010
11x
12x
13x
14x
15x
10%
617,438
665,177
712,916
760,655
808,394
11%
595,507
641,445
687,383
733,320
779,258
12%
574,571
618,791
663,010
707,230
751,449
13%
554,572
597,152
639,732
682,313
724,893
14%
535,464
576,480
617,495
658,510
699,526


$
613,061
Projected Per Share Value of Firm ($)
21.90
Dollars in ($000)
2011Y Act.
2012L3 Act.
Remainder of 2012Y
Est.
2013Y Est.
2014Y Est.
2015Y Est.
2016Y Est.
Total Assets
3,604,117
3,887,909
3,959,447
4,250,070
4,562,025
4,896,878
5,256,309
2,827
2,723
681
2,723
2,723
2,723
Annual Asset Growth Rate (%)

Amortization of Intangibles
Intangible Assets
(4.21)
68,283
Tangible Assets (TA)
3,535,834
Average Assets
ROAA (%)
Net Interest Income/Average Assets (%)


Asset-weighted Loan Yield (%)


Asset-weighted Securities Yield (%)
Yield on Debt and Equity Securities (

Avg Securities/Avg Earning Assets (%)
Asset-weighted Other Asset Yield (%)

Avg Other Assets/ Avg EA (%)

Liab-weigh Cost of Int-bear Dep (%)

Avg Int-bear Deps/ Avg Int-bear Liab (%)
Liability-wtd Borrowing Cost (%)


Gain on Net Int Position/Avg EA (%)

Net Interest Position/Avg EA (%)

Fiduciary Activities/Avg Assets (%)
Invt Bank, Adv & Oth/Avg Assets (%)

Venture Capital/ Avg Assets (%)
Trading Activities/Avg Assets (%)

Gain on Asset Sales/Avg Assets (%)
Gain on Loans Sales/Avg Assets (%)

Gain on OREO Sales/ Avg Assets (%)
Gain on Other Asset Sales/ Avg Assets (%)

Net Servicing Fees/ Avg Assets (%)
Securitization Income/ Avg Assets (%)

Deposit Svc Chgs/ Avg Assets (%)
Insur Commissions & Fees/ Avg Assets (%)

Ins&Reinsur Undrwrt/ Avg Assets (%)
Other Insur Inc/ Avg Assets (%)

Other Noninterest Inc/ Avg Assets (%)
Salary Exp/Avg Assets (%)

Office & Equipment/Avg Assets (%)
Amort of Intangibles/Avg Assets (%)

Other Noninterest Exp/ Avg Assets (%)
Gain on Sale of Sec/ Avg Assets (%)

Loan Loss Provision/Avg Assets (%)
Income Tax/ Avg Assets (%)

After-tax Items/ Avg Assets (%)
Efficiency Ratio (%)
1.50
7.34
86,881
3,801,028
Ending (Required) TCE/TA (%)
Capital Distributions (Infusions)
4,166,593
80,754
4,481,271
4,406,048
4,729,452
1.41
1.41
1.41
3.88
3.89
3.89
3.89
3.89
4.57
4.56
4.57
4.57
4.57
4.57
4.43
4.44
4.45
4.45
4.45
4.45
5.56
5.29
5.31
5.31
5.31
5.31
6.58
4.73
6.48
4.74
6.48
4.74
6.48
4.74
6.48
73.16
73.16
73.16
73.16
0.51
0.52
0.52
0.52
0.52
Price/ Est. Earnings (x)

Price/ Deposits (%)
Tang. Book Prem./ Deposits (%)
4.57
4.45
5.31
4.74
6.48
73.16
0.52
2.79
2.43
2.43
2.43
2.43
2.43
2.43
17.72
21.30
21.30
21.30
21.30
21.30
21.30
0.06
1.00
0.05
0.83
0.05
0.83
0.05
0.83
0.05
0.05
0.83
0.05
0.83
0.83
5.95
5.55
5.54
5.54
5.54
5.54
5.54
1.13
0.85
0.86
0.86
0.86
0.86
0.86
0.84
0.61
0.61
0.61
0.61
0.61
0.61
0.94
0.67
0.67
0.67
0.67
0.67
0.67
90.37
91.22
91.22
91.22
91.22
91.22
91.22
0.29
2.90
9.63
0.15
0.25
2.81
8.78
0.12
0.25
2.81
8.78
0.12
0.25
2.81
8.78
0.12
0.25
0.25
2.81
0.25
2.81
8.78
2.81
8.78
0.12
8.78
0.12
0.12
1.13
0.85
0.86
0.86
0.86
0.86
0.86
12.59
14.07
14.07
14.07
14.07
14.07
14.07
84.85
85.22
85.22
85.22
85.22
85.22
85.22
1.03
1.04
0.89
0.89
0.89
0.89
0.89
0.00
0.00
0.00
0.00
0.00
0.00
0.02
0.03
0.03
0.03
0.03
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.08
0.09
(0.02)
0.00
0.14
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.39
0.38
0.38
0.38
0.38
0.38
0.00
0.05
0.00
0.05
0.00
0.05
0.00
0.00
0.00
0.00
0.13
0.00
0.05
0.00
0.03
0.00
0.05
0.00
0.00
0.00
0.00
0.00
0.00
0.38
0.05
0.00
0.05
0.00
0.00
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.50
0.43
0.43
0.43
0.43
0.43
0.43
2.57
2.46
2.46
2.46
2.46
2.46
1.17
1.17
1.17
1.17
1.17
1.17
0.37
0.34
0.34
0.34
0.34
0.34
0.08
0.95
0.07
0.88
0.07
0.88
0.07
0.88
0.07
0.88
0.06
0.06
0.06
0.06
0.06
0.10
0.10
0.10
0.10
0.10
0.10
0.81
0.87
0.87
0.87
0.87
0.87
0.00
0.00
0.00
0.00
0.00
0.00
47.45
60,250
50.00
50.00
50.00
431,092
463,742
498,765
536,338
1,568
0.00
0.00
0.00
62,125
66,685
71,580
0.54
2.04
2.19
2.35
2.53
438,496
488,969
525,867
565,450
11.32
11.74
11.73
11.73
431,092
463,742
498,765
536,338
11.13
11.13
11.13
11.13
7,404
(51,473)
(44,276)
12.39
Average
136.68
148.80
31,471
21,895
21,002
20,143
19,442
574,855
Implied Value
High
198.33
200.21
28.79
26.03
5.76
17.63
15.92
21.44
4.91
11.13
29,112
22.60
5.97
11.74
576,447
27,102
22.08
*Comparable Deals in New England announced from 09/12/2009 to 09/12/2012 for targets between $500,000,000 and $2,000,000,000 in assets.
*Implied Values based upon Median Comparable Deal Metrics.
20.24
607,918
25,227
16.94
-4.17
20.79
57,877
11.13
155.37
0.00
15,399
423,097
58.01
0.00
50.00
11.48
Median
153.49
0.10
0.87
423,097
405,783
Low
43.61
0.88
0.06
50.00
10.00
54,741
0.34
0.07
0.88
0.06
49.56
2.46
1.17
0.07
Present Value of Terminal Value

$
613,061
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------M&A Comparable Deal Metrics
Price/ LTM Earnings (x)
1.41
3.89
6.48
73.16
0.50
Present Value of Capital Distributions
Price/ Tangible Book Value (%)
5,179,219
5,076,594
4.74
76.33
One-Time Deal Expense
Price/ Book Value (%)
941
77,090
4,818,847
4,104,759
3.88
5.00
7.34
78,031
1.41
TCE before Distributions

Ending (Required) TCE
3,873,247
83,477
7.34
3,923,678
Earnings Per Share ($)
TCE/TA before Distributions (%)
86,200
7.34
1.56
Cost Savings Per NonInterest Expense (%)

Net Income
7.34
3,746,013
Beginning Tangible Common Equity (TCE)

Cost Savings After Tax ($000)
1.84
11.74
$
$
Shares Outstanding (Actual)
Est. Value ($000)

782,765 $
657,366
1,252,598
552,098
1,423,127
696,830
$
$
Est. Share Value

27.96
23.48
44.75
50.84
19.72
24.89
27,993,628
Peer Analysis
Company Name
End of Period Date (m/dd/yyyy)
Peer Average
Peer Median

9/30/2012
Bank of America
Corporation
9/30/2012
SunTrust Banks, Inc.

9/30/2012
Citigroup Inc.
9/30/2012
JPMorgan Chase & Co.

9/30/2012
PNC Financial Services

Group, Inc.
9/30/2012
Total Assets ($000)

Intangible Assets (Net of MSR) ($000)
Asset Growth Rate (%) - 1yr
ROAA (%)
Yield on Debt and Equity Securities (%)
Avg Securities/Avg Earning Assets (%)
Avg Other Assets/ Avg Earning Assets (%)
Avg Int-bear Deps/ Avg Int-bear Liab (%)
Net Income ($000)
Efficiency Ratio (FTE) (%)
Common Equity ($000)
Tangible Common Equity ($000)
Tangible Assets ($000)
Avg Diluted Shares ($000)
Common Shares Outstanding (Actual)
Closing Price ($)
Market Capitalization ($M)
Price/Book (%)
Price/Tangible Book (%)
958,349,205
25,643,908
0.77
1.19
3.54
3.30
4.21
5.54
63.40
2.64
18.37
1.68
18.23
0.91
0.47
70.27
1.96
29.73
88.98
1.82
3.35
1,443,436
69.93
92,262,600
66,618,692
932,705,298
2,762,374,076
2,742,401,797
37.43
73,107.0
95.6
133.7
327,183,552
13,303,658
1.46
1.25
3.37
3.17
4.03
4.80
71.93
2.47
17.20
1.28
5.68
0.84
0.38
76.07
2.04
23.93
89.99
2.00
3.34
1,008,276
63.70
36,971,214
24,573,822
316,731,312
1,420,910,304
1,388,918,955
37.92
49,525.5
91.2
125.6
3,887,909
86,881
-16.62
1.62
4.57
4.46
5.15
6.37
72.67
2.25
21.56
0.00
5.77
0.69
0.50
91.83
2.80
8.17
85.43
1.03
2.39
16,095
46.02
509,978
423,097
3,801,028
28,341,000
27,993,628
33.52
938.3
185.2
223.3
2,168,023,105
77,006,774
1.10
0.06
2.08
1.67
2.91
4.37
48.22
2.27
17.34
1.24
34.44
1.24
0.28
52.70
2.30
47.30
89.90
1.87
3.25
340,073
84.54
219,837,609
142,830,835
2,091,016,331
10,776,173,000
10,778,078,165
11.63
125,349.0
57.0
86.7
173,213,253
6,434,045
-11.43
2.50
3.22
3.06
3.66
4.04
80.58
2.88
12.61
0.29
6.82
0.60
0.41
81.77
1.45
18.23
91.60
1.43
4.04
1,077,409
90.06
20,009,599
13,575,554
166,779,208
538,699,000
538,828,728
28.31
15,254.2
76.2
112.4
1,931,346,000
31,915,000
3.11
0.10
2.80
2.43
3.89
7.37
38.60
2.52
16.54
1.31
44.85
1.46
0.93
57.08
2.18
42.92
90.84
0.10
2.67
468,000
98.18
186,465,000
154,550,000
1,899,431,000
3,015,300,000
2,932,520,700
42.34
124,162.9
66.6
79.3
2,321,284,000
50,819,000
5.44
1.02
2.19
1.94
2.72
4.90
36.96
2.02
17.05
1.24
45.99
0.78
0.34
54.51
1.31
45.49
89.62
2.46
2.76
5,708,000
61.16
190,635,000
139,816,000
2,270,465,000
3,813,900,000
3,801,401,625
46.14
175,396.7
92.0
125.0
301,077,311
9,944,687
1.82
1.26
3.89
3.75
4.33
4.77
71.74
3.27
24.99
2.67
3.26
0.58
0.29
76.18
1.53
23.82
82.37
2.20
3.53
939,142
63.62
35,123,330
25,178,643
291,132,624
529,000,000
528,863,145
60.05
31,758.2
90.4
126.2
Fifth Third Bancorp

9/30/2012
Capital One Financial

Corporation
9/30/2012
U.S. Bancorp
9/30/2012
117,482,869
2,446,126
-0.20
1.24
3.68
3.49
4.16
4.41
82.73
3.39
13.65
0.75
3.62
0.67
0.36
79.96
1.90
20.04
87.25
2.12
3.42
363,052
63.78
13,319,162
10,873,036
115,036,743
944,820,608
897,467,318
15.47
13,883.8
104.2
127.7
302,114,103
16,662,629
7.30
1.59
6.96
6.81
7.87
9.62
76.29
2.35
21.42
3.50
2.29
1.06
0.76
83.98
2.58
16.02
90.15
1.56
4.10
1,177,813
49.00
38,819,098
22,156,469
285,451,474
584,100,000
581,684,101
61.99
36,058.6
92.8
149.5
352,253,000
9,923,000
-1.00
1.71
3.51
3.27
4.16
4.83
72.11
2.42
23.35
2.40
4.54
0.89
0.40
75.96
2.43
24.04
90.08
2.78
3.03
1,474,000
49.09
33,892,000
23,969,000
342,330,000
1,897,000,000
1,880,370,592
33.50
62,992.4
185.8
262.8

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Guide to the Bank Valuation Model

Stand Alone Model Methodology:

Acquisition Model Methodology:

Home BancShares, Inc.

Provided by SNL Financial

Projected Value of Firm ($000)

Annual Asset Growth Rate (%)

Tangible Assets (TA)

Yield/ Cost Spread (%)

Yield on Earning Assets (%)

Yield on Loans and Leases (%)

Asset-weighted Securities Yield (%)

Cost of Interest Bearing Liab (%)

Liab-weigh Cost of Int-bear Dep (%)

Gain on Net Int Position/Avg EA (%)

Avg Borrowing/Avg Int-bear Liab (%)

Cost of Borrowings (%)

Liability-wtd Borrowing Cost (%)

Avg Other Assets/ Avg EA (%)

Yield on Other Assets (%)

Asset-weighted Other Asset Yield (%)

Noninterest Income/ Avg Assets (%)

Fiduciary Activities/Avg Assets (%)

Invt Bank, Adv & Oth/Avg Assets (%)

Venture Capital/ Avg Assets (%)

Gain on Asset Sales/Avg Assets (%)

Gain on OREO Sales/ Avg Assets (%)

Net Servicing Fees/ Avg Assets (%)

Securitization Income/ Avg Assets (%)

Insur Commissions & Fees/ Avg Assets (%)

Ins&Reinsur Undrwrt/ Avg Assets (%)

Other Noninterest Inc/ Avg Assets (%)

Amort of Intangibles/Avg Assets (%)

Other Noninterest Exp/ Avg Assets (%)

Loan Loss Provision/Avg Assets (%)

After-tax Items/ Avg Assets (%)

Earnings Per Share ($)

TCE before Distributions

TCE/TA before Distributions (%)

Capital Distributions (Infusions)

Present Value of Capital Distributions

Present Value of Terminal Value

Efficiency Ratio (%)

Office & Equipment/Avg Assets (%)

Deposit Svc Chgs/ Avg Assets (%)

Ending (Required) TCE/TA (%)

Ending (Required) TCE

Net Interest Margin (Non-FTE) (%)

Avg Earning Assets/ Avg Assets (%)

Net Interest Position/Avg EA (%)

Cost of Interest Bearing Liab (%)

Net Interest Income/Average Assets (%)

Avg Int-bear Deps/ Avg Int-bear Liab

Cost of Int Bearing Deposits (%)

Avg Securities/Avg Earning Assets (%

Yield on Debt and Equity Securities (%)

Projected Per Share Value of Firm ($)

Current Market Data

Market Cap ($000)

Est. Firm Value per Share ($)

Est. Firm Value/Book (x)

Price/Tang Book (x)

Est. Firm Value/Tang Book (x)

2012 FactSet Est.