CONWAY, Ark., Oct. 17, 2019 (GLOBE NEWSWIRE) — Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, announced third quarter earnings today that once again included a solid net interest margin at 4.32%, up from 4.28% in the second quarter.
Highlights of the Third Quarter of 2019:
| Metric | Q3 2019 | Q2 2019 | Q1 2019 | Q4 2018 | Q3 2018 | ||||||||||
| Net Income | $72.8 million | $72.2 million | $71.4 million | $71.0 million | $80.3 million | ||||||||||
| Total Revenue (net) | $167.7 million | $164.1 million | $163.1 million | $163.8 million | $171.8 million | ||||||||||
| ROA | 1.93% | 1.92% | 1.92% | 1.90% | 2.14% | ||||||||||
| NIM | 4.32% | 4.28% | 4.30% | 4.30% | 4.46% | ||||||||||
| Purchase Accounting Accretion | $8.5 million | $9.2 million | $9.1 million | $9.4 million | $10.7 million | ||||||||||
| ROE | 11.84% | 12.18% | 12.34% | 12.05% | 13.74% | ||||||||||
| ROTCE (non-GAAP)(1) | 20.04% | 21.01% | 21.53% | 21.08% | 24.20% | ||||||||||
| Diluted Earnings Per Share | $0.44 | $0.43 | $0.42 | $0.41 | $0.46 | ||||||||||
| Non-Performing Assets to Total Assets | 0.45% | 0.51% | 0.52% | 0.51% | 0.47% | ||||||||||
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
“Book value per common share was $14.80 at September 30, 2019 compared to $13.44 at September 30, 2018, an annual increase of 10.1%, and tangible book value per common share (non-GAAP) was $8.83 at September 30, 2019 compared to $7.68 at September 30, 2018, an annual increase of 15.0%,” said John Allison, Chairman. “We made the strategic decision to participate in a stock repurchase program, although it is dilutive to tangible book,” Allison continued. “If we had not bought back stock, our year over year increase in tangible book value would have been 20.2%. These are numbers I am very proud of,” added Allison.
“Our Net Interest Margin has held the course in 2019, at 4.32% for the third quarter as compared to 4.28% in the second quarter and 4.30% in the first quarter,” said Tracy French, Centennial Bank President and Chief Executive Officer. “I think this speaks to the discipline within this company and is a performance metric we are very proud of,” French added.
“Asset quality has been another strong pillar for Centennial Bank,” said Randy Sims, Home BancShares, Inc. Chief Executive Officer. “Our non-performing assets to total assets was 0.45% in the third quarter as compared to 0.51% in the second quarter, which is a very reassuring position,” Sims added.
Operating Highlights
Our net interest margin was 4.32% for the three-month period ended September 30, 2019 compared to 4.28% for the three-month period ended June 30, 2019. The yield on loans was 6.08% and 6.06% for the three months ended September 30, 2019 and June 30, 2019, respectively, as average loans decreased from $11.00 billion to $10.94 billion. Additionally, the rate on interest bearing deposits decreased to 1.36% as of September 30, 2019 from 1.38% as of June 30, 2019, with average balances of $8.64 billion and $8.62 billion, respectively.
From the second quarter of 2019 to the third quarter of 2019, we experienced a $373,000 increase in investment premium amortization resulting from increased prepayment speeds on investment securities due to the declining interest rate environment. This increased investment premium amortization negatively impacted the net interest margin for the quarter ended September 30, 2019 by 1.1 basis points.
During 2018, the Company recognized $7.2 million of interest income from large payoff events including minimum interest, default interest, acceleration of deferred origination fees and acceleration of other discounts. The Company’s interest income events of approximately $1.0 million, $2.1 million, $4.0 million and $100,000 were recognized during the first, second, third and fourth quarters of 2018, respectively. These interest income events impacted the Company’s net interest margin by 3, 6, 12 and 0 basis points for the first, second, third and fourth quarters of 2018, respectively. The first six months of 2019 do not include any additional interest income for payoff events. However, during the third quarter of 2019, we had several interest income events primarily related to large payoffs. These events totaled $2.8 million of interest income and increased the net interest margin by 8.4 basis points for the third quarter of 2019.
For the three months ended September 30, 2019 and June 30, 2019, we recognized $8.5 million and $9.2 million, respectively, in total net accretion for acquired loans and deposits. The $778,000 decline in accretion income decreased the net interest margin by 2.3 basis points for the third quarter of 2019.
Purchase accounting accretion on acquired loans was $8.4 million and $9.2 million and average purchase accounting loan discounts were $112.6 million and $122.2 million for the three-month periods ended September 30, 2019 and June 30, 2019, respectively. Net amortization of time deposit premiums was $30,000 per quarter and net average remaining CD premiums were $297,000 and $327,000 for the three-month periods ended September 30, 2019 and June 30, 2019, respectively.
Net interest income on a fully taxable equivalent basis increased $1.9 million, or 1.35%, to $144.2 million for the three-month period ended September 30, 2019, from $142.3 million for the three-month period ended June 30, 2019. This increase in net interest income for the three-month period ended September 30, 2019 was the result of a $723,000 increase in interest income as well as a $1.2 million decrease in interest expense. The $723,000 increase in interest income was primarily the result of a $1.6 million increase in loan interest income which was partially offset by a $560,000 decrease in income on deposits with other banks and a $345,000 decrease in investment income primarily due to increased investment premium amortization. The $1.2 million decrease in interest expense was primarily the result of a $1.0 million decrease in interest expense on FHLB borrowed funds as a result of the average balance of FHLB and other borrowings decreasing by $183.8 million or 19.71%. Interest expense on deposits decreased by $143,000 for the three-month period ended September 30, 2019. This decrease was the result of a $1.0 million decrease in interest expense on savings and interest-bearing transaction accounts which was partially offset by an $879,000 increase in interest expense on time deposits.
During the third quarter of 2019, no provision for loan loss was recorded. The Company continues to see strong asset quality. Non-performing loans to total loans was 0.54% as of September 30, 2019 compared to 0.57% as of June 30, 2019, an improvement of 4.25%. Non-performing assets to total assets improved by 10.38% from 0.51% as of June 30, 2019 to 0.45% as of September 30, 2019. For the third quarter of 2019, net charge-offs were $1.8 million compared to net charge-offs of $1.6 million for the second quarter of 2019.
The Company reported $24.7 million of non-interest income for the third quarter of 2019, compared to $23.1 million for the second quarter of 2019. The most important components of the third quarter non-interest income were $8.7 million from other service charges and fees, $6.5 million from service charges on deposits accounts, $4.6 million from mortgage lending income, $1.5 million from other income and $1.1 million from dividends from FHLB, FRB, FNBB & other equity investments.
Non-interest expense for the third quarter of 2019 was $67.8 million compared to $67.6 million for the second quarter of 2019. The most important components of the third quarter non-interest expense were $39.9 million from salaries and employee benefits, $14.7 million in other expense and $9.0 million in occupancy and equipment expenses. For the third quarter of 2019, our efficiency ratio improved to 39.16% compared to 39.93% reported for the second quarter of 2019.
Non-interest expense for the third quarter of 2019 included a $2.3 million FDIC small bank assessment credit. Small banks (total consolidated assets of less than $10 billion) were awarded FDIC assessment credits for the portion of their assessments that contributed to the growth in the reserve ratio from 1.15 percent to 1.35 percent, to be applied when the reserve ratio is at least 1.38 percent. The assessment regulations provide that after the reserve ratio reaches 1.38 percent the FDIC will automatically apply small bank credits to reduce the banks’ regular deposit insurance assessments. Centennial Bank was classified as a small bank until January 1, 2018. During the third quarter, the Company was notified that the Deposit Insurance Fund (DIF) reserve ratio as of June 30, 2019 was 1.40 percent. As a result, the Company recorded its FDIC small bank assessment credit in the amount of $2.3 million during the third quarter of 2019.
During the third quarter of 2019, the State of Florida reduced its corporate income tax rate from 5.50% to 4.458% for the tax years January 1, 2019 through December 31, 2021. Because of this reduction, our third quarter income taxes were reduced by $763,000 of which $497,000 was related to the first six months of 2019.
Also, during the third quarter of 2019, the Company made a strategic decision to surrender $47.5 million of its underperforming separate account bank owned life insurance (“BOLI”). When a BOLI contract is surrendered, the gains within the policy become taxable and a 10% IRS penalty is levied on the gain. As a result of the BOLI decision, the Company recorded a $3.7 million tax expense related to this transaction.
Financial Condition
Total loans receivable were $10.77 billion at September 30, 2019 compared to $11.07 billion at December 31, 2018. Total deposits were $11.05 billion at September 30, 2019 compared to $10.90 billion at December 31, 2018. Total assets were $14.90 billion at September 30, 2019 compared to $15.30 billion at December 31, 2018.
During the third quarter 2019, the Company experienced approximately $281.2 million in organic loan decline. Centennial CFG experienced $170.9 million of organic loan decline and had loans of $1.50 billion at September 30, 2019. Our legacy footprint experienced $110.3 million in organic loan decline during the quarter.
Non-performing loans at September 30, 2019 were $19.2 million, $37.0 million, $494,000, $1.9 million and zero in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $58.6 million. Non-performing assets at September 30, 2019 were $23.1 million, $42.2 million, $528,000, $1.9 million and zero in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $67.7 million.
The Company’s allowance for loan losses was $104.3 million at September 30, 2019, or 0.97% of total loans, compared to $108.8 million, or 0.98% of total loans, at December 31, 2018. As of September 30, 2019, and December 31, 2018, the Company’s allowance for loan losses was 178.0% and 169.4% of its total non-performing loans, respectively.
Stockholders’ equity was $2.47 billion at September 30, 2019 compared to $2.35 billion at December 31, 2018, an increase of approximately $120.0 million. The increase in stockholders’ equity is primarily associated with the $152.8 million increase in retained earnings and the $33.7 million increase in comprehensive income which were partially offset by the repurchase of $75.4 million of our common stock during 2019. Book value per common share was $14.80 at September 30, 2019 compared to $13.76 at December 31, 2018. Tangible book value per common share (non-GAAP) was $8.83 at September 30, 2019 compared to $7.90 at December 31, 2018, an annualized increase of 15.7%.
Branches
The Company currently has 77 branches in Arkansas, 76 branches in Florida, 5 branches in Alabama and one branch in New York City.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, October 17, 2019. We encourage all participants to pre-register for the conference call using the following link: http://dpregister.com/10134963. Callers who pre-register will be given dial-in instructions and a unique PIN to gain immediate access to the live call. Participants may pre-register now, or at any time prior to the call, and will immediately receive simple instructions via email. The Home BancShares conference call will also be automatically scheduled as an event in your Outlook calendar.
Those without internet access or unable to pre-register may dial in and listen to the live call by calling 1-877-508-9586 and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-344-7529, Passcode: 10134963, which will be available until October 24, 2019 at 10:59 p.m. CT (11:59 p.m. ET). Internet access to the call will be available live or in recorded version on the Company’s website at www.homebancshares.com under “Investor Relations” for 12 months.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures–including net income (earnings), as adjusted; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity, as adjusted; efficiency ratio, as adjusted, tangible book value per common share and tangible common equity to tangible assets–to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
General
This release contains forward-looking statements regarding 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. These factors include, but are not limited to, the following: economic conditions, credit quality, interest rates, loan demand, the ability to successfully integrate new acquisitions, increased regulatory requirements as a result of our exceeding $10 billion in total assets, legislative and regulatory changes, technological changes and cybersecurity risks, competition from other financial institutions, changes in the assumptions used in making the forward-looking statements, and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on February 26, 2019.
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.”
FOR MORE INFORMATION CONTACT:
Donna Townsell
Director of Investor Relations
Home BancShares, Inc.
(501) 328-4625
| Home BancShares, Inc. | ||||||||||||||||
| Consolidated End of Period Balance Sheets | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||
| (In thousands) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks | $ | 171,492 | $ | 183,745 | $ | 141,027 | $ | 175,024 | $ | 208,681 | ||||||
| Interest-bearing deposits with other banks | 270,804 | 373,557 | 421,443 | 482,915 | 323,376 | |||||||||||
| Cash and cash equivalents | 442,296 | 557,302 | 562,470 | 657,939 | 532,057 | |||||||||||
| Federal funds sold | 1,650 | 1,075 | 1,700 | 325 | 500 | |||||||||||
| Investment securities – available-for-sale | 2,087,508 | 2,053,939 | 2,013,123 | 1,785,862 | 1,744,430 | |||||||||||
| Investment securities – held-to-maturity | – | – | – | 192,776 | 199,266 | |||||||||||
| Loans receivable | 10,771,946 | 11,053,129 | 10,978,935 | 11,071,879 | 10,832,815 | |||||||||||
| Allowance for loan losses | (104,304 | ) | (106,066 | ) | (106,357 | ) | (108,791 | ) | (110,191 | ) | ||||||
| Loans receivable, net | 10,667,642 | 10,947,063 | 10,872,578 | 10,963,088 | 10,722,624 | |||||||||||
| Bank premises and equipment, net | 277,966 | 278,821 | 279,012 | 233,261 | 233,652 | |||||||||||
| Foreclosed assets held for sale | 8,639 | 13,734 | 14,466 | 13,236 | 13,507 | |||||||||||
| Cash value of life insurance | 102,003 | 149,708 | 149,353 | 148,621 | 148,014 | |||||||||||
| Accrued interest receivable | 47,557 | 48,992 | 50,288 | 48,945 | 48,909 | |||||||||||
| Deferred tax asset, net | 53,436 | 58,517 | 64,061 | 73,275 | 79,548 | |||||||||||
| Goodwill | 958,408 | 958,408 | 958,408 | 958,408 | 958,408 | |||||||||||
| Core deposit and other intangibles | 38,136 | 39,723 | 41,310 | 42,896 | 44,484 | |||||||||||
| Other assets | 216,694 | 180,293 | 172,732 | 183,806 | 187,339 | |||||||||||
| Total assets | $ | 14,901,935 | $ | 15,287,575 | $ | 15,179,501 | $ | 15,302,438 | $ | 14,912,738 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
| Liabilities | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Demand and non-interest-bearing | $ | 2,394,207 | $ | 2,575,696 | $ | 2,519,175 | $ | 2,401,232 | $ | 2,482,857 | ||||||
| Savings and interest-bearing transaction accounts | 6,620,616 | 6,774,162 | 6,650,181 | 6,624,407 | 6,420,951 | |||||||||||
| Time deposits | 2,032,547 | 1,997,458 | 1,898,096 | 1,874,139 | 1,720,930 | |||||||||||
| Total deposits | 11,047,370 | 11,347,316 | 11,067,452 | 10,899,778 | 10,624,738 | |||||||||||
| Federal funds purchased | 50,000 | – | – | – | – | |||||||||||
| Securities sold under agreements to repurchase | 157,038 | 142,541 | 152,239 | 143,679 | 142,146 | |||||||||||
| FHLB and other borrowed funds | 691,443 | 899,447 | 1,105,175 | 1,472,393 | 1,363,851 | |||||||||||
| Accrued interest payable and other liabilities | 117,332 | 107,695 | 124,172 | 67,912 | 72,381 | |||||||||||
| Subordinated debentures | 369,363 | 369,170 | 368,979 | 368,790 | 368,596 | |||||||||||
| Total liabilities | 12,432,546 | 12,866,169 | 12,818,017 | 12,952,552 | 12,571,712 | |||||||||||
| Stockholders’ equity | ||||||||||||||||
| Common stock | 1,669 | 1,675 | 1,682 | 1,707 | 1,741 | |||||||||||
| Capital surplus | 1,542,858 | 1,550,999 | 1,560,994 | 1,609,810 | 1,668,106 | |||||||||||
| Retained earnings | 904,980 | 853,964 | 803,629 | 752,184 | 701,900 | |||||||||||
| Accumulated other comprehensive (loss) income | 19,882 | 14,768 | (4,821 | ) | (13,815 | ) | (30,721 | ) | ||||||||
| Total stockholders’ equity | 2,469,389 | 2,421,406 | 2,361,484 | 2,349,886 | 2,341,026 | |||||||||||
| Total liabilities and stockholders’ equity | $ | 14,901,935 | $ | 15,287,575 | $ | 15,179,501 | $ | 15,302,438 | $ | 14,912,738 | ||||||
| Home BancShares, Inc. | |||||||||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Sep. 30, | Sep. 30, | |||||||||||||||||
| (In thousands) | 2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Loans | $ | 167,470 | $ | 165,816 | $ | 163,848 | $ | 163,201 | $ | 166,334 | $ | 497,134 | $ | 467,395 | |||||||||
| Investment securities | |||||||||||||||||||||||
| Taxable | 10,343 | 10,650 | 10,706 | 9,873 | 9,011 | 31,699 | 26,960 | ||||||||||||||||
| Tax-exempt | 3,193 | 3,183 | 3,379 | 3,456 | 3,427 | 9,755 | 9,801 | ||||||||||||||||
| Deposits – other banks | 1,068 | 1,628 | 1,543 | 1,241 | 1,273 | 4,239 | 3,408 | ||||||||||||||||
| Federal funds sold | 8 | 10 | 11 | 9 | 6 | 29 | 24 | ||||||||||||||||
| Total interest income | 182,082 | 181,287 | 179,487 | 177,780 | 180,051 | 542,856 | 507,588 | ||||||||||||||||
| Interest expense | |||||||||||||||||||||||
| Interest on deposits | 29,566 | 29,709 | 28,006 | 25,207 | 21,412 | 87,281 | 54,382 | ||||||||||||||||
| Federal funds purchased | 21 | – | – | – | – | 21 | 1 | ||||||||||||||||
| FHLB borrowed funds | 3,683 | 4,722 | 6,118 | 6,474 | 7,055 | 14,523 | 15,880 | ||||||||||||||||
| Securities sold under agreements to repurchase | 628 | 630 | 634 | 602 | 472 | 1,892 | 1,220 | ||||||||||||||||
| Subordinated debentures | 5,207 | 5,239 | 5,259 | 5,215 | 5,202 | 15,705 | 15,374 | ||||||||||||||||
| Total interest expense | 39,105 | 40,300 | 40,017 | 37,498 | 34,141 | 119,422 | 86,857 | ||||||||||||||||
| Net interest income | 142,977 | 140,987 | 139,470 | 140,282 | 145,910 | 423,434 | 420,731 | ||||||||||||||||
| Provision for loan losses | – | 1,325 | – | – | – | 1,325 | 4,322 | ||||||||||||||||
| Net interest income after | |||||||||||||||||||||||
| provision for loan losses | 142,977 | 139,662 | 139,470 | 140,282 | 145,910 | 422,109 | 416,409 | ||||||||||||||||
| Non-interest income | |||||||||||||||||||||||
| Service charges on deposit accounts | 6,492 | 6,259 | 6,401 | 7,004 | 6,992 | 19,152 | 19,847 | ||||||||||||||||
| Other service charges and fees | 8,710 | 8,177 | 6,563 | 7,598 | 9,041 | 23,450 | 28,993 | ||||||||||||||||
| Trust fees | 382 | 391 | 403 | 290 | 437 | 1,176 | 1,262 | ||||||||||||||||
| Mortgage lending income | 4,610 | 3,457 | 2,435 | 2,554 | 3,691 | 10,502 | 9,825 | ||||||||||||||||
| Insurance commissions | 603 | 515 | 609 | 442 | 463 | 1,727 | 1,668 | ||||||||||||||||
| Increase in cash value of life insurance | 714 | 740 | 736 | 737 | 735 | 2,190 | 2,119 | ||||||||||||||||
| Dividends from FHLB, FRB, FNBB & other | 1,101 | 1,149 | 3,505 | 1,992 | 1,288 | 5,755 | 3,765 | ||||||||||||||||
| Gain (loss) on SBA loans | 291 | 355 | 241 | 75 | 47 | 887 | 491 | ||||||||||||||||
| Gain (loss) on branches, equipment and other assets, net | 12 | (129 | ) | 79 | (25 | ) | (102 | ) | (38 | ) | (95 | ) | |||||||||||
| Gain (loss) on OREO, net | 334 | 58 | 206 | 114 | 836 | 598 | 2,287 | ||||||||||||||||
| Other income | 1,500 | 2,094 | 2,494 | 2,726 | 2,419 | 6,088 | 9,163 | ||||||||||||||||
| Total non-interest income | 24,749 | 23,066 | 23,672 | 23,507 | 25,847 | 71,487 | 79,325 | ||||||||||||||||
| Non-interest expense | |||||||||||||||||||||||
| Salaries and employee benefits | 39,919 | 37,976 | 37,836 | 36,230 | 37,825 | 115,731 | 107,315 | ||||||||||||||||
| Occupancy and equipment | 9,047 | 8,853 | 8,823 | 8,310 | 8,148 | 26,723 | 25,650 | ||||||||||||||||
| Data processing expense | 4,059 | 3,838 | 3,970 | 3,642 | 3,461 | 11,867 | 10,786 | ||||||||||||||||
| Other operating expenses | 14,739 | 16,957 | 18,428 | 23,090 | 16,689 | 50,124 | 48,980 | ||||||||||||||||
| Total non-interest expense | 67,764 | 67,624 | 69,057 | 71,272 | 66,123 | 204,445 | 192,731 | ||||||||||||||||
| Income before income taxes | 99,962 | 95,104 | 94,085 | 92,517 | 105,634 | 289,151 | 303,003 | ||||||||||||||||
| Income tax expense | 27,199 | 22,940 | 22,735 | 21,487 | 25,350 | 72,874 | 73,630 | ||||||||||||||||
| Net income | $ | 72,763 | $ | 72,164 | $ | 71,350 | $ | 71,030 | $ | 80,284 | $ | 216,277 | $ | 229,373 | |||||||||
| Home BancShares, Inc. | ||||||||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Sep. 30, | Sep. 30, | ||||||||||||||||||||||||
| (Dollars and shares in thousands, except per share data) | 2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||||||||||||
| Diluted earnings per common share | $ | 0.44 | $ | 0.43 | $ | 0.42 | $ | 0.41 | $ | 0.46 | $ | 1.29 | $ | 1.32 | ||||||||||||||||
| Diluted earnings per common share, as adjusted, excluding | ||||||||||||||||||||||||||||||
| FDIC Small Bank Assessment Credit, Florida tax savings, BOLI redemption tax,special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense (non-GAAP)(1) | 0.44 | 0.43 | 0.42 | 0.44 | 0.46 | 1.30 | 1.32 | |||||||||||||||||||||||
| Basic earnings per common share | 0.44 | 0.43 | 0.42 | 0.41 | 0.46 | 1.29 | 1.32 | |||||||||||||||||||||||
| Dividends per share – common | 0.1300 | 0.1300 | 0.1200 | 0.1200 | 0.1200 | 0.3800 | 0.3400 | |||||||||||||||||||||||
| Book value per common share | 14.80 | 14.46 | 14.04 | 13.76 | 13.44 | 14.80 | 13.44 | |||||||||||||||||||||||
| Tangible book value per common share (non-GAAP)(1) | 8.83 | 8.50 | 8.10 | 7.90 | 7.68 | 8.83 | 7.68 | |||||||||||||||||||||||
| STOCK INFORMATION | ||||||||||||||||||||||||||||||
| Average common shares outstanding | 167,178 | 167,791 | 169,592 | 173,023 | 174,440 | 168,178 | 173,870 | |||||||||||||||||||||||
| Average diluted shares outstanding | 167,178 | 167,791 | 169,592 | 173,311 | 174,867 | 168,178 | 174,394 | |||||||||||||||||||||||
| End of period common shares outstanding | 166,860 | 167,466 | 168,173 | 170,720 | 174,135 | 166,860 | 174,135 | |||||||||||||||||||||||
| ANNUALIZED PERFORMANCE METRICS | ||||||||||||||||||||||||||||||
| Return on average assets | 1.93 | % | 1.92 | % | 1.92 | % | 1.90 | % | 2.14 | % | 1.92 | % | 2.12 | % | ||||||||||||||||
| Return on average assets excluding FDIC Small Bank | ||||||||||||||||||||||||||||||
| Assessment Credit, Florida tax savings, BOLI redemption tax, special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense (ROA, as adjusted) (non-GAAP)(1) | 1.96 | % | 1.92 | % | 1.92 | % | 2.03 | % | 2.14 | % | 1.94 | % | 2.12 | % | ||||||||||||||||
| Return on average assets excluding intangible | ||||||||||||||||||||||||||||||
| amortization (non-GAAP)(1) | 2.10 | % | 2.09 | % | 2.09 | % | 2.07 | % | 2.33 | % | 2.09 | % | 2.31 | % | ||||||||||||||||
| Return on average common equity | 11.84 | % | 12.18 | % | 12.34 | % | 12.05 | % | 13.74 | % | 12.12 | % | 13.56 | % | ||||||||||||||||
| Return on average common equity excluding FDIC Small | ||||||||||||||||||||||||||||||
| Bank Assessment Credit, Florida tax savings, BOLI redemption tax, special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROE, as adjusted) (non-GAAP)(1) | 12.08 | % | 12.22 | % | 12.34 | % | 12.86 | % | 13.74 | % | 12.21 | % | 13.56 | % | ||||||||||||||||
| Return on average tangible common equity (non-GAAP)(1) | 20.04 | % | 21.01 | % | 21.53 | % | 21.08 | % | 24.20 | % | 20.84 | % | 24.02 | % | ||||||||||||||||
| Return on average tangible common equity excluding | ||||||||||||||||||||||||||||||
| intangible amortization (non-GAAP)(1) | 20.36 | % | 21.35 | % | 21.88 | % | 21.43 | % | 24.56 | % | 21.18 | % | 24.39 | % | ||||||||||||||||
| Return on average tangible common equity excluding FDIC | ||||||||||||||||||||||||||||||
| Small Bank Assessment Credit, Florida tax savings, BOLI redemption tax, special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROTCE, as adjusted) (non-GAAP)(1) | 20.45 | % | 21.08 | % | 21.53 | % | 22.50 | % | 24.20 | % | 21.00 | % | 24.02 | % | ||||||||||||||||
| Efficiency ratio | 39.16 | % | 39.93 | % | 41.01 | % | 42.18 | % | 37.23 | % | 40.03 | % | 37.26 | % | ||||||||||||||||
| Efficiency ratio, as adjusted (non-GAAP)(1) | 40.60 | % | 39.92 | % | 40.52 | % | 38.28 | % | 37.39 | % | 40.35 | % | 37.43 | % | ||||||||||||||||
| Net interest margin – FTE | 4.32 | % | 4.28 | % | 4.30 | % | 4.30 | % | 4.46 | % | 4.30 | % | 4.46 | % | ||||||||||||||||
| Fully taxable equivalent adjustment | $ | 1,247 | $ | 1,319 | $ | 1,367 | $ | 1,412 | $ | 1,489 | $ | 3,933 | $ | 4,101 | ||||||||||||||||
| Total revenue (net) | 167,726 | 164,053 | 163,142 | 163,789 | 171,757 | 494,921 | 500,056 | |||||||||||||||||||||||
| Total purchase accounting accretion | 8,462 | 9,240 | 9,055 | 9,432 | 10,744 | 26,757 | 32,021 | |||||||||||||||||||||||
| Average purchase accounting loan discounts | 112,623 | 122,197 | 131,596 | 141,244 | 151,377 | 122,121 | 156,855 | |||||||||||||||||||||||
| OTHER OPERATING EXPENSES | ||||||||||||||||||||||||||||||
| Advertising | $ | 1,201 | $ | 1,095 | $ | 1,051 | $ | 1,214 | $ | 1,154 | $ | 3,347 | $ | 3,258 | ||||||||||||||||
| Merger and acquisition expenses | – | – | – | 6,013 | – | – | – | |||||||||||||||||||||||
| Amortization of intangibles | 1,587 | 1,587 | 1,586 | 1,587 | 1,617 | 4,760 | 4,867 | |||||||||||||||||||||||
| Electronic banking expense | 1,901 | 1,851 | 1,903 | 1,969 | 1,947 | 5,655 | 5,653 | |||||||||||||||||||||||
| Directors’ fees | 380 | 392 | 434 | 319 | 314 | 1,206 | 962 | |||||||||||||||||||||||
| Due from bank service charges | 272 | 282 | 238 | 289 | 253 | 792 | 714 | |||||||||||||||||||||||
| FDIC and state assessment | (532 | ) | 1,655 | 1,710 | 1,869 | 2,293 | 2,833 | 6,689 | ||||||||||||||||||||||
| Hurricane expense | – | – | 897 | 470 | – | 897 | – | |||||||||||||||||||||||
| Insurance | 698 | 661 | 697 | 737 | 762 | 2,056 | 2,363 | |||||||||||||||||||||||
| Legal and accounting | 1,414 | 989 | 981 | 1,151 | 761 | 3,384 | 2,397 | |||||||||||||||||||||||
| Other professional fees | 1,906 | 2,306 | 2,812 | 1,465 | 1,748 | 7,024 | 4,988 | |||||||||||||||||||||||
| Operating supplies | 511 | 505 | 536 | 510 | 510 | 1,552 | 1,712 | |||||||||||||||||||||||
| Postage | 320 | 293 | 326 | 325 | 311 | 939 | 978 | |||||||||||||||||||||||
| Telephone | 289 | 306 | 303 | 324 | 337 | 898 | 1,081 | |||||||||||||||||||||||
| Other expense | 4,792 | 5,035 | 4,954 | 4,848 | 4,682 | 14,781 | 13,318 | |||||||||||||||||||||||
| Total other operating expenses | $ | 14,739 | $ | 16,957 | $ | 18,428 | $ | 23,090 | $ | 16,689 | $ | 50,124 | $ | 48,980 | ||||||||||||||||
| (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release. | ||||||||||||||||||||||||||||||
| Home BancShares, Inc. | ||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||||||
| (Dollars in thousands) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||
| BALANCE SHEET RATIOS | ||||||||||||||||||||
| Total loans to total deposits | 97.51 | % | 97.41 | % | 99.20 | % | 101.58 | % | 101.96 | % | ||||||||||
| Common equity to assets | 16.57 | % | 15.84 | % | 15.56 | % | 15.36 | % | 15.70 | % | ||||||||||
| Tangible common equity to tangible assets (non-GAAP)(1) | 10.59 | % | 9.96 | % | 9.60 | % | 9.43 | % | 9.62 | % | ||||||||||
| LOANS RECEIVABLE | ||||||||||||||||||||
| Real estate | ||||||||||||||||||||
| Commercial real estate loans | ||||||||||||||||||||
| Non-farm/non-residential | $ | 4,375,970 | $ | 4,495,558 | $ | 4,623,174 | $ | 4,806,684 | $ | 4,685,827 | ||||||||||
| Construction/land development | 1,827,454 | 1,930,838 | 1,649,303 | 1,546,035 | 1,550,910 | |||||||||||||||
| Agricultural | 87,087 | 85,045 | 76,092 | 76,433 | 72,930 | |||||||||||||||
| Residential real estate loans | ||||||||||||||||||||
| Residential 1-4 family | 1,808,099 | 1,852,784 | 1,947,119 | 1,975,586 | 1,982,666 | |||||||||||||||
| Multifamily residential | 498,079 | 523,789 | 538,098 | 560,475 | 608,608 | |||||||||||||||
| Total real estate | 8,596,689 | 8,888,014 | 8,833,786 | 8,965,213 | 8,900,941 | |||||||||||||||
| Consumer | 469,741 | 455,554 | 448,093 | 443,105 | 428,192 | |||||||||||||||
| Commercial and industrial | 1,479,724 | 1,515,357 | 1,505,773 | 1,476,331 | 1,303,841 | |||||||||||||||
| Agricultural | 90,343 | 80,621 | 58,966 | 48,562 | 58,644 | |||||||||||||||
| Other | 135,449 | 113,583 | 132,317 | 138,668 | 141,197 | |||||||||||||||
| Loans receivable | $ | 10,771,946 | $ | 11,053,129 | $ | 10,978,935 | $ | 11,071,879 | $ | 10,832,815 | ||||||||||
| Discount for credit losses on purchased loans | $ | 89,615 | $ | 98,672 | $ | 106,617 | $ | 113,648 | $ | 120,849 | ||||||||||
| Purchased loans, net of discount for credit losses on purchased loans | 2,227,386 | 2,469,579 | 2,712,315 | 2,900,284 | 3,081,695 | |||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
| Balance, beginning of period | $ | 106,066 | $ | 106,357 | $ | 108,791 | $ | 110,191 | $ | 111,516 | ||||||||||
| Loans charged off | 2,302 | 2,279 | 3,391 | 1,814 | 2,501 | |||||||||||||||
| Recoveries of loans previously charged off | 540 | 663 | 957 | 414 | 1,176 | |||||||||||||||
| Net loans (recovered)/charged off | 1,762 | 1,616 | 2,434 | 1,400 | 1,325 | |||||||||||||||
| Provision for loan losses | – | 1,325 | – | – | – | |||||||||||||||
| Balance, end of period | $ | 104,304 | $ | 106,066 | $ | 106,357 | $ | 108,791 | $ | 110,191 | ||||||||||
| Net (recoveries) charge-offs to average total loans | 0.06 | % | 0.06 | % | 0.09 | % | 0.05 | % | 0.05 | % | ||||||||||
| Allowance for loan losses to total loans | 0.97 | % | 0.96 | % | 0.97 | % | 0.98 | % | 1.02 | % | ||||||||||
| NON-PERFORMING ASSETS | ||||||||||||||||||||
| Non-performing loans | ||||||||||||||||||||
| Non-accrual loans | $ | 48,640 | $ | 52,841 | $ | 49,616 | $ | 47,083 | $ | 36,198 | ||||||||||
| Loans past due 90 days or more | 9,964 | 9,961 | 14,577 | 17,159 | 20,267 | |||||||||||||||
| Total non-performing loans | 58,604 | 62,802 | 64,193 | 64,242 | 56,465 | |||||||||||||||
| Other non-performing assets | ||||||||||||||||||||
| Foreclosed assets held for sale, net | 8,639 | 13,734 | 14,466 | 13,236 | 13,507 | |||||||||||||||
| Other non-performing assets | 447 | 947 | 947 | 497 | 405 | |||||||||||||||
| Total other non-performing assets | 9,086 | 14,681 | 15,413 | 13,733 | 13,912 | |||||||||||||||
| Total non-performing assets | $ | 67,690 | $ | 77,483 | $ | 79,606 | $ | 77,975 | $ | 70,377 | ||||||||||
| Allowance for loan losses for loans to non-performing loans | 177.98 | % | 168.89 | % | 165.68 | % | 169.35 | % | 195.15 | % | ||||||||||
| Non-performing loans to total loans | 0.54 | % | 0.57 | % | 0.58 | % | 0.58 | % | 0.52 | % | ||||||||||
| Non-performing assets to total assets | 0.45 | % | 0.51 | % | 0.52 | % | 0.51 | % | 0.47 | % | ||||||||||
| (1) Calculation of this metric and the reconciliation to GAAP is included in the schedules accompanying this release. | ||||||||||||||||||||
| Home BancShares, Inc. | ||||||||||||||||||
| Consolidated Net Interest Margin | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| September 30, 2019 | June 30, 2019 | |||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ |
|||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||
| ASSETS | ||||||||||||||||||
| Earning assets | ||||||||||||||||||
| Interest-bearing balances due from banks | $ | 213,671 | $ | 1,068 | 1.98 | % | $ | 298,821 | $ | 1,628 | 2.19 | % | ||||||
| Federal funds sold | 1,442 | 8 | 2.20 | % | 1,596 | 10 | 2.51 | % | ||||||||||
| Investment securities – taxable | 1,705,647 | 10,343 | 2.41 | % | 1,640,883 | 10,650 | 2.60 | % | ||||||||||
| Investment securities – non-taxable – FTE | 370,376 | 4,139 | 4.43 | % | 379,437 | 4,177 | 4.42 | % | ||||||||||
| Loans receivable – FTE | 10,944,638 | 167,771 | 6.08 | % | 11,000,926 | 166,141 | 6.06 | % | ||||||||||
| Total interest-earning assets | 13,235,774 | 183,329 | 5.50 | % | 13,321,663 | 182,606 | 5.50 | % | ||||||||||
| Non-earning assets | 1,757,458 | 1,776,937 | ||||||||||||||||
| Total assets | $ | 14,993,232 | $ | 15,098,600 | ||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||
| Liabilities | ||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 6,629,491 | $ | 19,614 | 1.17 | % | $ | 6,677,683 | $ | 20,637 | 1.24 | % | ||||||
| Time deposits | 2,014,630 | 9,952 | 1.96 | % | 1,943,320 | 9,072 | 1.87 | % | ||||||||||
| Total interest-bearing deposits | 8,644,121 | 29,566 | 1.36 | % | 8,621,003 | 29,709 | 1.38 | % | ||||||||||
| Federal funds purchased | 4,801 | 21 | 1.74 | % | – | – | 0.00 | % | ||||||||||
| Securities sold under agreement to repurchase | 143,628 | 628 | 1.73 | % | 144,478 | 630 | 1.75 | % | ||||||||||
| FHLB borrowed funds | 748,577 | 3,683 | 1.95 | % | 932,365 | 4,722 | 2.03 | % | ||||||||||
| Subordinated debentures | 369,269 | 5,207 | 5.59 | % | 369,076 | 5,239 | 5.69 | % | ||||||||||
| Total interest-bearing liabilities | 9,910,396 | 39,105 | 1.57 | % | 10,066,922 | 40,300 | 1.61 | % | ||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||
| Non-interest bearing deposits | 2,530,664 | 2,553,060 | ||||||||||||||||
| Other liabilities | 114,352 | 101,900 | ||||||||||||||||
| Total liabilities | 12,555,412 | 12,721,882 | ||||||||||||||||
| Shareholders’ equity | 2,437,820 | 2,376,718 | ||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 14,993,232 | $ | 15,098,600 | ||||||||||||||
| Net interest spread | 3.93 | % | 3.89 | % | ||||||||||||||
| Net interest income and margin – FTE | $ | 144,224 | 4.32 | % | $ | 142,306 | 4.28 | % | ||||||||||
| Home BancShares, Inc. | ||||||||||||||||||
| Consolidated Net Interest Margin | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||
| September 30, 2019 | September 30, 2018 | |||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||
| ASSETS | ||||||||||||||||||
| Earning assets | ||||||||||||||||||
| Interest-bearing balances due from banks | $ | 261,419 | $ | 4,239 | 2.17 | % | $ | 271,987 | $ | 3,408 | 1.68 | % | ||||||
| Federal funds sold | 1,510 | 29 | 2.57 | % | 3,595 | 24 | 0.89 | % | ||||||||||
| Investment securities – taxable | 1,647,781 | 31,699 | 2.57 | % | 1,538,387 | 26,960 | 2.34 | % | ||||||||||
| Investment securities – non-taxable – FTE | 380,115 | 12,741 | 4.48 | % | 382,088 | 12,981 | 4.54 | % | ||||||||||
| Loans receivable – FTE | 10,993,686 | 498,081 | 6.06 | % | 10,529,117 | 468,316 | 5.95 | % | ||||||||||
| Total interest-earning assets | 13,284,511 | 546,789 | 5.50 | % | 12,725,174 | 511,689 | 5.38 | % | ||||||||||
| Non-earning assets | 1,772,341 | 1,750,456 | ||||||||||||||||
| Total assets | $ | 15,056,852 | $ | 14,475,630 | ||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||
| Liabilities | ||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 6,634,809 | $ | 59,788 | 1.20 | % | $ | 6,422,489 | $ | 40,327 | 0.84 | % | ||||||
| Time deposits | 1,954,182 | 27,493 | 1.88 | % | 1,595,985 | 14,055 | 1.18 | % | ||||||||||
| Total interest-bearing deposits | 8,588,991 | 87,281 | 1.36 | % | 8,018,474 | 54,382 | 0.91 | % | ||||||||||
| Federal funds purchased | 1,618 | 21 | 1.74 | % | 41 | 1 | 3.26 | % | ||||||||||
| Securities sold under agreement to repurchase | 146,277 | 1,892 | 1.73 | % | 148,472 | 1,220 | 1.10 | % | ||||||||||
| FHLB borrowed funds | 945,351 | 14,523 | 2.05 | % | 1,159,973 | 15,880 | 1.83 | % | ||||||||||
| Subordinated debentures | 369,078 | 15,705 | 5.69 | % | 368,313 | 15,374 | 5.58 | % | ||||||||||
| Total interest-bearing liabilities | 10,051,315 | 119,422 | 1.59 | % | 9,695,273 | 86,857 | 1.20 | % | ||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||
| Non-interest bearing deposits | 2,508,082 | 2,464,032 | ||||||||||||||||
| Other liabilities | 110,715 | 54,731 | ||||||||||||||||
| Total liabilities | 12,670,112 | 12,214,036 | ||||||||||||||||
| Shareholders’ equity | 2,386,740 | 2,261,594 | ||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 15,056,852 | $ | 14,475,630 | ||||||||||||||
| Net interest spread | 3.91 | % | 4.18 | % | ||||||||||||||
| Net interest income and margin – FTE | $ | 427,367 | 4.30 | % | $ | 424,832 | 4.46 | % | ||||||||||
| Home BancShares, Inc. | |||||||||||||||||||||||
| Non-GAAP Reconciliations | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
| (Dollars and shares in thousands, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Sep. 30, | Sep. 30, | ||||||||||||||||
| except per share data) | 2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||
| EARNINGS, AS ADJUSTED | |||||||||||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 72,763 | $ | 72,164 | $ | 71,350 | $ | 71,030 | $ | 80,284 | $ | 216,277 | $ | 229,373 | |||||||||
| Pre-tax adjustments | |||||||||||||||||||||||
| FDIC Small Bank Assessment Credit | (2,291 | ) | – | – | – | – | (2,291 | ) | – | ||||||||||||||
| Special dividend from equity investment | – | – | (2,134 | ) | – | – | (2,134 | ) | – | ||||||||||||||
| Merger and acquisition expenses | – | – | – | 6,013 | – | – | – | ||||||||||||||||
| Hurricane expenses | – | – | 897 | 470 | – | 897 | – | ||||||||||||||||
| Outsourced special project expense | – | – | 900 | – | – | 900 | – | ||||||||||||||||
| Total pre-tax adjustments | (2,291 | ) | – | (337 | ) | 6,483 | – | (2,628 | ) | – | |||||||||||||
| Tax-effect of adjustments | (592 | ) | – | (87 | ) | 1,694 | – | (679 | ) | – | |||||||||||||
| Adjustments after-tax | (1,699 | ) | – | (250 | ) | 4,789 | – | (1,949 | ) | – | |||||||||||||
| Florida tax savings | (497 | ) | 252 | 245 | – | – | – | – | |||||||||||||||
| BOLI redemption tax | 3,667 | – | – | – | – | 3,667 | – | ||||||||||||||||
| Total adjustments after-tax (B) | 1,471 | 252 | (5 | ) | 4,789 | – | 1,718 | – | |||||||||||||||
| Earnings, as adjusted (C) | $ | 74,234 | $ | 72,416 | $ | 71,345 | $ | 75,819 | $ | 80,284 | $ | 217,995 | $ | 229,373 | |||||||||
| Average diluted shares outstanding (D) | 167,178 | 167,791 | 169,592 | 173,311 | 174,867 | 168,178 | 174,394 | ||||||||||||||||
| GAAP diluted earnings per share: (A/D) | $ | 0.44 | $ | 0.43 | $ | 0.42 | $ | 0.41 | $ | 0.46 | $ | 1.29 | $ | 1.32 | |||||||||
| Adjustments after-tax: (B/D) | – | – | – | 0.03 | – | 0.01 | – | ||||||||||||||||
| Diluted earnings per common share excluding FDIC Small Bank Assessment Credit, | |||||||||||||||||||||||
| Florida tax savings, BOLI redemption tax, special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (C/D) | $ | 0.44 | $ | 0.43 | $ | 0.42 | $ | 0.44 | $ | 0.46 | $ | 1.30 | $ | 1.32 | |||||||||
| ANNUALIZED RETURN ON AVERAGE ASSETS | |||||||||||||||||||||||
| Return on average assets: (A/E) | 1.93 | % | 1.92 | % | 1.92 | % | 1.90 | % | 2.14 | % | 1.92 | % | 2.12 | % | |||||||||
| Return on average assets excluding FDIC Small Bank Assessment Credit, | |||||||||||||||||||||||
| Florida tax savings, BOLI redemption tax,special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROA, as adjusted) ((A+D)/E) | 1.96 | % | 1.92 | % | 1.92 | % | 2.03 | % | 2.14 | % | 1.94 | % | 2.12 | % | |||||||||
| Return on average assets excluding intangible amortization: ((A+C)/(E-F)) | 2.10 | % | 2.09 | % | 2.09 | % | 2.07 | % | 2.33 | % | 2.09 | % | 2.31 | % | |||||||||
| GAAP net income available to common shareholders (A) | $ | 72,763 | $ | 72,164 | $ | 71,350 | $ | 71,030 | $ | 80,284 | $ | 216,277 | $ | 229,373 | |||||||||
| Amortization of intangibles (B) | 1,587 | 1,587 | 1,586 | 1,587 | 1,617 | 4,760 | 4,867 | ||||||||||||||||
| Amortization of intangibles after-tax (C) | 1,177 | 1,177 | 1,177 | 1,172 | 1,194 | 3,531 | 3,595 | ||||||||||||||||
| Adjustments after-tax (D) | 1,471 | 252 | (5 | ) | 4,789 | – | 1,718 | – | |||||||||||||||
| Average assets (E) | 14,993,232 | 15,098,600 | 15,079,672 | 14,838,979 | 14,880,931 | 15,056,852 | 14,475,630 | ||||||||||||||||
| Average goodwill, core deposits & other intangible assets (F) | 997,309 | 998,898 | 1,000,494 | 1,002,070 | 1,001,843 | 998,889 | 984,639 | ||||||||||||||||
| Home BancShares, Inc. | |||||||||||||||||||||||
| Non-GAAP Reconciliations | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
| (Dollars and shares in thousands, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Sep. 30, | Sep. 30, | ||||||||||||||||
| except per share data) | 2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||
| ANNUALIZED RETURN ON AVERAGE COMMON EQUITY | |||||||||||||||||||||||
| Return on average common equity: (A/D) | 11.84 | % | 12.18 | % | 12.34 | % | 12.05 | % | 13.74 | % | 12.12 | % | 13.56 | % | |||||||||
| Return on average common equity excluding FDIC Small Bank | |||||||||||||||||||||||
| Assessment Credit, Florida tax savings, BOLI redemption tax, special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROE, as adjusted) ((A+C)/D) | 12.08 | % | 12.22 | % | 12.34 | % | 12.86 | % | 13.74 | % | 12.21 | % | 13.56 | % | |||||||||
| Return on average tangible common equity: (A/(D-E)) | 20.04 | % | 21.01 | % | 21.53 | % | 21.08 | % | 24.20 | % | 20.84 | % | 24.02 | % | |||||||||
| Return on average tangible common equity excluding intangible | |||||||||||||||||||||||
| amortization: (B/(D-E)) | 20.36 | % | 21.35 | % | 21.88 | % | 21.43 | % | 24.56 | % | 21.18 | % | 24.39 | % | |||||||||
| Return on average tangible common equity excluding FDIC Small | |||||||||||||||||||||||
| Bank Assessment Credit, Florida tax savings, BOLI redemption tax, special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROTCE, as adjusted) ((A+C)/(D-E)) | 20.45 | % | 21.08 | % | 21.53 | % | 22.50 | % | 24.20 | % | 21.00 | % | 24.02 | % | |||||||||
| GAAP net income available to common shareholders (A) | $ | 72,763 | $ | 72,164 | $ | 71,350 | $ | 71,030 | $ | 80,284 | $ | 216,277 | $ | 229,373 | |||||||||
| Earnings excluding intangible amortization (B) | 73,940 | 73,341 | 72,527 | 72,202 | 81,478 | 219,808 | 232,968 | ||||||||||||||||
| Adjustments after-tax (C) | 1,471 | 252 | (5 | ) | 4,789 | – | 1,718 | – | |||||||||||||||
| Average common equity (D) | 2,437,820 | 2,376,718 | 2,344,657 | 2,338,802 | 2,317,930 | 2,386,740 | 2,261,594 | ||||||||||||||||
| Average goodwill, core deposits & other intangible assets (E) | 997,309 | 998,898 | 1,000,494 | 1,002,070 | 1,001,843 | 998,889 | 984,639 | ||||||||||||||||
| EFFICIENCY RATIO | |||||||||||||||||||||||
| Efficiency ratio: ((C-E)/(A+B+D)) | 39.16 | % | 39.93 | % | 41.01 | % | 42.18 | % | 37.23 | % | 40.03 | % | 37.26 | % | |||||||||
| Efficiency ratio, as adjusted: ((C-E-G)/(A+B+D-F)) | 40.60 | % | 39.92 | % | 40.52 | % | 38.28 | % | 37.39 | % | 40.35 | % | 37.43 | % | |||||||||
| Net interest income (A) | $ | 142,977 | $ | 140,987 | $ | 139,470 | $ | 140,282 | $ | 145,910 | $ | 423,434 | $ | 420,731 | |||||||||
| Non-interest income (B) | 24,749 | 23,066 | 23,672 | 23,507 | 25,847 | 71,487 | 79,325 | ||||||||||||||||
| Non-interest expense (C) | 67,764 | 67,624 | 69,057 | 71,272 | 66,123 | 204,445 | 192,731 | ||||||||||||||||
| Fully taxable equivalent adjustment (D) | 1,247 | 1,319 | 1,367 | 1,412 | 1,489 | 3,933 | 4,101 | ||||||||||||||||
| Amortization of intangibles (E) | 1,587 | 1,587 | 1,586 | 1,587 | 1,617 | 4,760 | 4,867 | ||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||||
| Special dividend from equity investment | $ | – | $ | – | $ | 2,134 | $ | – | $ | – | $ | 2,134 | $ | – | |||||||||
| Gain (loss) on OREO | 334 | 58 | 206 | 114 | 836 | 598 | 2,287 | ||||||||||||||||
| Gain (loss) on branches, equipment and other assets, net | 12 | (129 | ) | 79 | (25 | ) | (102 | ) | (38 | ) | (95 | ) | |||||||||||
| Total non-interest income adjustments (F) | $ | 346 | $ | (71 | ) | $ | 2,419 | $ | 89 | $ | 734 | $ | 2,694 | $ | 2,192 | ||||||||
| Non-interest expense: | |||||||||||||||||||||||
| FDIC Small Bank Assessment Credit | $ | (2,291 | ) | $ | – | $ | – | $ | – | $ | – | $ | (2,291 | ) | $ | – | |||||||
| Merger Expenses | – | – | – | 6,013 | – | – | – | ||||||||||||||||
| Hurricane damage expense | – | – | 897 | 470 | – | 897 | – | ||||||||||||||||
| Outsourced special project expense | – | – | 900 | – | – | 900 | – | ||||||||||||||||
| Total non-interest expense adjustments (G) | $ | (2,291 | ) | $ | – | $ | 1,797 | $ | 6,483 | $ | – | $ | (494 | ) | $ | – | |||||||
| Home BancShares, Inc. | ||||||||||||||||
| Non-GAAP Reconciliations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||
| (Dollars in thousands) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||
| TANGIBLE BOOK VALUE PER COMMON SHARE | ||||||||||||||||
| Book value per common share: (A/B) | $ | 14.80 | $ | 14.46 | $ | 14.04 | $ | 13.76 | $ | 13.44 | ||||||
| Tangible book value per common share: ((A-C-D)/B) | 8.83 | 8.50 | 8.10 | 7.90 | 7.68 | |||||||||||
| Total stockholders’ equity (A) | $ | 2,469,389 | $ | 2,421,406 | $ | 2,361,484 | $ | 2,349,886 | $ | 2,341,026 | ||||||
| End of period common shares outstanding (B) | 166,860 | 167,466 | 168,173 | 170,720 | 174,135 | |||||||||||
| Goodwill (C) | $ | 958,408 | $ | 958,408 | $ | 958,408 | $ | 958,408 | $ | 958,408 | ||||||
| Core deposit and other intangibles (D) | 38,136 | 39,723 | 41,310 | 42,896 | 44,484 | |||||||||||
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | ||||||||||||||||
| Equity to assets: (B/A) | 16.57 | % | 15.84 | % | 15.56 | % | 15.36 | % | 15.70 | % | ||||||
| Tangible common equity to tangible assets: ((B-C-D)/(A-C-D)) | 10.59 | % | 9.96 | % | 9.60 | % | 9.43 | % | 9.62 | % | ||||||
| Total assets (A) | $ | 14,901,935 | $ | 15,287,575 | $ | 15,179,501 | $ | 15,302,438 | $ | 14,912,738 | ||||||
| Total stockholders’ equity (B) | 2,469,389 | 2,421,406 | 2,361,484 | 2,349,886 | 2,341,026 | |||||||||||
| Goodwill (C) | 958,408 | 958,408 | 958,408 | 958,408 | 958,408 | |||||||||||
| Core deposit and other intangibles (D) | 38,136 | 39,723 | 41,310 | 42,896 | 44,484 | |||||||||||