HomeTown Bankshares Corporation
HomeTown Bankshares — Merger or Acquisition (October 2018)
12 slides from HomeTown Bankshares's merger presentation, Oct 2, 2018
Slide 1: Acquisition of HomeTown Bankshares Corporation
Acquisition of HomeTown Bankshares Corporation October 1, 2018 “Welcome To Hometown Banking” Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements made in this presentation, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this presentation and are based on current expectations and involve a number of assumptions.
Slide 3: Additional Information About the Merger
Additional Information About the Merger In connection with the proposed merger, American National will file with the SEC a registration statement on Form S-4 to register the shares of American National common stock to be issued to the shareholders of HomeTown. The registration statement will include
Slide 4: Acquisition Highlights and Strategic Rationale
Acquisition Highlights and Strategic Rationale Roanoke focus Significant small business lending opportunity Leverages experienced lending teams operating in market Attractive core deposit base Prominent pro forma market position #1 community bank rank in Roanoke by deposit market share(1) #4 overall
Slide 5: Summary of Transaction Terms
Summary of Transaction Terms Target: HomeTown Bankshares Corporation Form of Consideration: 100% AMNB common stock Options: Each HMTA Option shall be converted into an option to acquire the equivalent number of shares of AMNB Common Stock Fixed Exchange Ratio: 0.415x Implied Price Per Share(1): $16.
Slide 6: Prominent Pro Forma Position in Roanoke
81 81 Prominent Pro Forma Position in Roanoke Source: SNL Financial Note: Deposit data as of 6/30/2018 Community bank defined as less than $20 billion in assets New River Valley consists of the following counties and cities: Montgomery, Pulaski, Floyd, Giles, Radford HHI Growth timeframe of 2019Y to
Slide 7: HomeTown Financial Snapshot
HomeTown Financial Snapshot Current Loan Composition Overview of HomeTown Source: SNL Financial as of the most recent period Note: Capital ratios per HomeTown Bank regulatory filings as of 6/30/2018; Loan data per GAAP filings as of 6/30/2018 Note: Core deposits defined as total deposits less total
Slide 8: Comprehensive Due Diligence
Comprehensive Due Diligence Due Diligence Summary Deep and experienced credit review team Reviewed individual loan files for 74.4% of outstanding loan balance Reviewed 100% of substandard or worse risk grade loans Reviewed 79.7% of commercial loans Reviewed 98.7% of loans with account level between
Slide 9: Summary of Transaction Assumptions
One-Time Merger Expenses: $12.1 million (after-tax) DP Contract Termination Costs: $5.5 million Cost Savings Approx. 40% of HMTA’s estimated noninterest expense 80% realization in 2019 and 100% realization thereafter Fair Value Marks Credit Mark: $11.0 million, equal to 2.4% of HomeTown’s loan portf
Slide 10: Summary of Financial Impact
Summary of Financial Impact ~11% EPS accretion expected in the first year following the completion of the Merger Manageable single-digit dilution to tangible book value per share at closing, earned back in ~3.3 years(1) Estimated IRR in excess of 20% Pro forma C&D and CRE concentrations remain below
Slide 11: Our Pro Forma Company
40 85 95 64 81 77 Our Pro Forma Company AMNB (24) HMTA (6) Source: SNL Financial as of the most recent period Financial data as of 6/30/2018; Excludes purchase accounting adjustments Market cap calculated using AMNB’s price of $39.11 as of 10/1/2018 Pro Forma Footprint Pro Forma Snapshot(1) Market O
Slide 12: Welcome to Roanoke, Virginia
Welcome to Roanoke, Virginia
HomeTown Bankshares — Merger or Acquisition (October 2018) on 6ix