Business Context and Reporting Period
Company: Home BancShares, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: March 11, 2009
Event: Payment of contingent consideration related to the acquisition of Centennial Bancshares, Inc.
Key Financial Metrics
The filing does not provide comprehensive financial statements (revenue, profit, cash flow, margins, debt, or liquidity) for the reporting period. It specifically details a one-time transaction:
- Contingent Consideration Paid: $3.1 million
- Payment Method: 100% Cash
- Payment Date: March 12, 2009
- Original Merger Consideration (Jan 1, 2008): $25.4 million total ($1.2 million cash, $24.3 million stock)
- Maximum Potential Contingent Consideration: $4 million
Material Changes
This report discloses the finalization of a contingent payment obligation arising from the 2008 acquisition of Centennial Bancshares. The final amount of $3.1 million was computed based on the acquired bank's 2008 performance, which was lower than the maximum potential payout of $4 million.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future outlook, or discussion of new risks. The event is a completed transaction satisfying a prior contractual obligation.
Investor Verification Checklist
- Verify the impact of the $3.1 million cash outflow on the company's current liquidity position.
- Confirm the accounting treatment of the $3.1 million payment (e.g., expense vs. adjustment to purchase price) in the most recent 10-Q or 10-K.
- Review the 2008 performance metrics of Centennial Bank that triggered the specific $3.1 million calculation.