CONWAY, Ark., July 19, 2018 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ: HOMB), parent company of Centennial Bank, today announced record quarterly loan originations of $957.9 million with a loan yield of 5.66% resulting in $198.8 million of organic loan growth. The Company reported record quarterly profit of $76.0 million, record pre-tax income of $100.3 million and record diluted earnings per share of $0.44 per share. Additionally, the Company’s performance ratios showed continued improvement with a net interest margin of 4.47%, return on average assets of 2.13%, return on average common equity of 13.54%, return on average tangible common equity excluding intangible amortization (non-GAAP)1 of 24.27%, and an efficiency ratio of 36.74%.

“I have no complaints about our results for this quarter. They were outstanding,” said John Allison, Chairman. “Our average assets have grown $3.77 billion or, 36%, while net income has grown approximately $26 million, or 52%, and EPS increased $0.09, or 26%, compared to prior year. In addition, the loan portfolio increased $572.2 million, or 5.5%, through $198.8 million of organic loan growth and the acquisition of Shore Premier Finance this quarter.”

“We achieved an impressive return on average assets of 2.13% for the second quarter. We also maintained strong asset quality while growing the portfolio with non-performing loans to total loans of 0.52% and non-performing assets to total assets of 0.50%,” added Tracy French, Centennial Bank President and Chief Executive Officer. “We are excited to add Shore Premier Finance to the Centennial family and look forward to growing our new marine lending division.”

1 The calculation of this metric and the reconciliation to generally accepted accounting principles (“GAAP”) is included in the schedules accompanying this release. “We are once again proud to report our most profitable quarter in the Company’s history,” said Randy Sims, Home BancShares, Inc. Chief Executive Officer. “We had record net interest income with the majority of the organic loan growth being recorded late in the quarter. With our acquisition of Shore Premier Finance plus our organic loan growth, the Company’s daily run rate continues to improve. Plus, our team has continued to control expenses improving our efficiency ratio from an impressive 37.48% for the second quarter of 2017 to an incredible 36.74% for the second quarter of 2018. This becomes even more impressive considering the recent conversion of Stonegate in February and our ability to quickly reap the dividends of consolidation.”

Operating Highlights

Net interest margin, on a fully taxable equivalent basis, was 4.47% for the quarter just ended compared to 4.46% for the first quarter of 2018. During the quarter, the Company originated loans with an average loan yield of 5.66% compared to loan payoffs with a yield of 5.13%.

The Company recorded a provision for loan loss of $2.7 million during the second quarter of 2018 compared to $387,000 in the second quarter of 2017. The Company continues to see improvement in asset quality. Non-performing loans to total loans was 0.52% as of June 30, 2018 compared to 0.60% as of June 30, 2017, an improvement of 13.3%. Non-performing assets to total assets also improved from 0.60% as of June 30, 2017 to 0.50% as of June 30, 2018, an improvement of 16.7%. For the second quarter of 2018, net charge-offs were $1.4 million compared to net charge-offs of $1.7 million for the first quarter of 2018.

The Company reported $27.7 million of non-interest income for the second quarter of 2018. The most important components of the second quarter non-interest income were $9.8 million from other service charges and fees, $6.8 million from service charges on deposits accounts, $3.5 million from mortgage lending income, and $3.1 million from other income.

Non-interest expense for the second quarter of 2018 was $63.2 million. The most important components of the second quarter non-interest expense were $34.5 million from salaries and employee benefits, $16.9 million in other expense and $8.5 million in occupancy and equipment expenses. For the second quarter of 2018, our efficiency ratio improved to 36.74% from 37.48% reported for the second quarter of 2017.

Financial Condition

Total loans receivable were $10.90 billion at June 30, 2018 compared to $10.33 billion at December 31, 2017. Total deposits were $10.74 billion at June 30, 2018 compared to $10.39 billion at December 31, 2017. Total assets were $14.92 billion at June 30, 2018 compared to $14.45 billion at December 31, 2017.

From March 31, 2018 to June 30, 2018, the Company experienced approximately $198.8 million in organic loan growth. Centennial CFG produced $140.3 million of organic loan growth and had loans of $1.65 billion at June 30, 2018. Our legacy footprint produced approximately 81% of the $957.9 million in loan originations during the second quarter of 2018.

Non-performing loans at June 30, 2018 were $13.0 million, $43.0 million, $52,000, $776,000 and zero in the Arkansas, Florida, Alabama, Shore Premier and Centennial CFG markets, respectively, for a total of $56.8 million. Non-performing assets at June 30, 2018 were $21.0 million, $51.5 million, $1.4 million, $776,000 and zero in the Arkansas, Florida, Alabama, Shore Premier and Centennial CFG markets, respectively, for a total of $74.6 million.

The Company’s allowance for loan losses was $111.5 million at June 30, 2018, or 1.02% of total loans, compared to $110.3 million, or 1.07% of total loans, at December 31, 2017. This decrease is primarily the result of acquiring the Shore Premier Finance loans which do not have an associated allowance for loan losses as a result of purchase accounting requiring them to be marked to fair value at acquisition. As of June 30, 2018, and December 31, 2017, the Company’s allowance for loan losses was 196% and 247% of its total non-performing loans, respectively.

Stockholders’ equity was $2.31 billion at June 30, 2018 compared to $2.20 billion at December 31, 2017, an increase of $109.7 million. The increase in stockholders’ equity is primarily associated with the $111.9 million increase in retained earnings as well as the issuance of 1.25 million shares of stock with a value of $28.2 million as part of the acquisition of Shore Premier Finance which were partially offset by $20.2 million of comprehensive loss and the repurchase of $15.0 million of our common stock during 2018. Book value per common share was $13.26 at June 30, 2018 compared to $12.70 at December 31, 2017. Tangible book value per common share was $7.52 at June 30, 2018 compared to $7.07 at December 31, 2017, an annualized increase of 12.8%.

Branches

During the second quarter of 2018, the Company opened one branch location in Jonesboro, Arkansas, and the Company plans to open a loan production office in Chesapeake, Virginia under the management of Shore Premier Finance during the 3rd quarter of 2018. 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

We encourage all participants to pre-register for the conference call using the following link: http://dpregister.com/10121421. 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: 10121421, which will be available until July 26, 2018 at 10:59 p.m. CT (11:59 ET). Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com.

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 earnings, as adjusted; return on average assets excluding intangible amortization; return on average assets, as adjusted; return on average common equity excluding intangible amortization; efficiency ratio, as adjusted; tangible book value per common share; and the tangible common equity to tangible assets ratio--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 benefits of the Company’s acquisition of Shore Premier Finance (“SPF”) and 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: (i) the risk that the benefits from the acquisition of SPF may not be fully realized or may take longer to realize than expected, including as a result of any delay in or failure to receive regulatory approval of the proposed loan production office through which SPF will be operated, changes in general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which the Company and SPF operate; (ii) the ability to promptly and effectively integrate the business of SFP into the Company; (iii) the reaction to the transaction of the Company’s and SPF’s customers, employees and counterparties; (iv) diversion of management time on acquisition-related issues; (v) economic conditions, credit quality, interest rates and loan demand; (vi) the ability to successfully integrate future acquisitions; (vii) increased regulatory requirements as a result of our exceeding $10 billion in total assets; (viii) legislative and regulatory changes; (ix) technological changes and cybersecurity risks; (x) competition from other financial institutions; (xi) changes in the assumptions used in making the forward-looking statements; and (xii) 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, 2017 filed with the SEC on February 27, 2018.

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 TownsellDirector of Investor RelationsHome BancShares, Inc.(501) 328-4625

Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)
		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,
(In thousands)			2018			2018			2017			2017			2017
ASSETS
Cash and due from banks		$	197,658		$	185,479		$	166,915		$	197,953		$	147,041
Interest-bearing deposits with other banks			298,085			325,122			469,018			354,367			313,447
Cash and cash equivalents			495,743			510,601			635,933			552,320			460,488
Federal funds sold			500			1,825			24,109			4,545			-
Investment securities - available-for-sale			1,718,704			1,693,018			1,663,517			1,575,685			1,400,431
Investment securities - held-to-maturity			204,401			213,731			224,756			234,945			254,161
Loans receivable			10,897,970			10,325,736			10,331,188			10,286,193			7,834,475
Allowance for loan losses			(111,516	)		(110,212	)		(110,266	)		(111,620	)		(80,138	)
Loans receivable, net			10,786,454			10,215,524			10,220,922			10,174,573			7,754,337
Bank premises and equipment, net			234,634			235,607			237,439			239,990			207,071
Foreclosed assets held for sale			17,853			20,134			18,867			21,701			18,789
Cash value of life insurance			147,281			147,424			146,866			146,158			97,684
Accrued interest receivable			45,682			45,361			45,708			41,071			32,445
Deferred tax asset, net			78,435			78,328			76,564			121,787			68,368
Goodwill			956,418			927,949			927,949			929,129			420,941
Core deposit and other intangibles			46,101			47,726			49,351			50,982			21,019
Other assets			191,914			186,001			177,779			163,081			136,494
Total assets		$	14,924,120		$	14,323,229		$	14,449,760		$	14,255,967		$	10,872,228
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing		$	2,523,553		$	2,473,602		$	2,385,252		$	2,555,465		$	1,957,677
Savings and interest-bearing transaction accounts			6,573,902			6,437,408			6,476,819			6,341,883			4,335,456
Time deposits			1,638,578			1,485,605			1,526,431			1,551,422			1,474,255
Total deposits			10,736,033			10,396,615			10,388,502			10,448,770			7,767,388
Federal funds purchased			-			-			-			-			-
Securities sold under agreements to repurchase			139,750			150,315			147,789			149,531			133,741
FHLB and other borrowed funds			1,309,950			1,115,061			1,299,188			1,044,333			1,099,478
Accrued interest payable and other liabilities			55,971			54,845			41,959			38,782			37,751
Subordinated debentures			368,403			368,212			368,031			367,835			357,838
Total liabilities			12,610,107			12,085,048			12,245,469			12,049,251			9,396,196
Stockholders' equity
Common stock			1,745			1,736			1,736			1,737			1,431
Capital surplus			1,693,337			1,671,141			1,675,318			1,674,642			940,821
Retained earnings			642,540			585,586			530,658			526,448			527,338
Accumulated other comprehensive (loss) income			(23,609	)		(20,282	)		(3,421	)		3,889			6,442
Total stockholders' equity			2,314,013			2,238,181			2,204,291			2,206,716			1,476,032
Total liabilities and stockholders' equity		$	14,924,120		$	14,323,229		$	14,449,760		$	14,255,967		$	10,872,228

Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
		Quarter Ended															Six Months Ended
		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Jun. 30,			Jun. 30,
(In thousands)			2018			2018			2017			2017			2017			2018			2017
Interest income
Loans		$	152,996		$	148,065		$	147,426		$	113,269		$	112,732		$	301,061		$	218,494
Investment securities
Taxable			8,979			8,970			7,793			7,071			6,434			17,949			11,912
Tax-exempt			3,368			3,006			3,025			3,032			2,966			6,374			5,910
Deposits - other banks			1,206			929			736			538			727			2,135			1,035
Federal funds sold			12			6			1			3			4			18			6
Total interest income			166,561			160,976			158,981			123,913			122,863			327,537			237,357
Interest expense
Interest on deposits			18,164			14,806			12,946			8,535			6,810			32,970			12,296
Federal funds purchased			-			1			1			-			-			1			-
FHLB borrowed funds			4,245			4,580			3,806			3,408			3,710			8,825			7,299
Securities sold under agreements to repurchase			372			376			325			232			196			748			361
Subordinated debentures			5,168			5,004			4,934			4,969			4,795			10,172			5,234
Total interest expense			27,949			24,767			22,012			17,144			15,511			52,716			25,190
Net interest income			138,612			136,209			136,969			106,769			107,352			274,821			212,167
Provision for loan losses			2,722			1,600			4,926			35,023			387			4,322			4,301
Net interest income after
provision for loan losses			135,890			134,609			132,043			71,746			106,965			270,499			207,866
Non-interest income
Service charges on deposit accounts			6,780			6,075			6,566			6,408			5,966			12,855			11,948
Other service charges and fees			9,797			10,155			10,144			8,490			8,576			19,952			17,493
Trust fees			379			446			548			365			309			825			765
Mortgage lending income			3,477			2,657			3,573			3,172			3,750			6,134			6,541
Insurance commissions			526			679			466			472			465			1,205			1,010
Increase in cash value of life insurance			730			654			738			478			463			1,384			773
Dividends from FHLB, FRB, Bankers' Bank & other			1,600			877			1,030			834			472			2,477			1,621
Gain on acquisitions			-			-			-			-			-			-			3,807
Gain (loss) on SBA loans			262			182			-			163			387			444			575
Gain (loss) on branches, equipment and other assets, net			-			7			2			(1,337	)		431			7			375
Gain (loss) on OREO, net			1,046			405			176			335			393			1,451			514
Gain (loss) on securities, net			-			-			1,193			136			380			-			803
Other income			3,076			3,668			2,856			1,941			2,825			6,744			4,662
Total non-interest income			27,673			25,805			27,292			21,457			24,417			53,478			50,887
Non-interest expense
Salaries and employee benefits			34,476			35,014			35,404			28,510			28,034			69,490			55,455
Occupancy and equipment			8,519			8,983			9,009			7,887			7,034			17,502			13,715
Data processing expense			3,339			3,986			3,559			2,853			2,863			7,325			5,586
Other operating expenses			16,894			15,397			15,246			31,596			13,072			32,291			31,388
Total non-interest expense			63,228			63,380			63,218			70,846			51,003			126,608			106,144
Income before income taxes			100,335			97,034			96,117			22,357			80,379			197,369			152,609
Income tax expense			24,310			23,970			72,808			7,536			30,282			48,280			55,656
Net income		$	76,025		$	73,064		$	23,309		$	14,821		$	50,097		$	149,089		$	96,953

Home BancShares, Inc.
Selected Financial Information
(Unaudited)
			Quarter Ended																Six Months Ended
			Jun. 30,			Mar. 31			Dec. 31,			Sep. 30,			Jun. 30,				Jun. 30,			Jun. 30,
(Dollars and shares in thousands, except per share data)				2018			2018			2017			2017			2017				2018			2017
PER SHARE DATA
Diluted earnings per common share			$	0.44		$	0.42		$	0.13		$	0.10		$	0.35			$	0.86		$	0.68
Diluted earnings per common share excluding gain on acquisitions, merger expenses, FDIC loss share buy-out expense, reduced provision for loan losses as a result of a significant loan recovery, hurricane expenses & effect of tax rate change (non-GAAP)(1)				0.44			0.42			0.35			0.32			0.35				0.86			0.68
Basic earnings per common share				0.44			0.42			0.13			0.10			0.35				0.86			0.68
Dividends per share - common				0.1100			0.1100			0.1100			0.1100			0.0900				0.2200			0.1800
Book value per common share				13.26			12.89			12.70			12.71			10.32				13.26			10.32
Tangible book value per common share (non-GAAP)(1)				7.52			7.27			7.07			7.06			7.23				7.52			7.23
STOCK INFORMATION
Average common shares outstanding				173,403			173,761			173,641			144,238			143,282				173,581			142,538
Average diluted shares outstanding				173,936			174,383			174,349			144,987			144,116				174,168			143,270
End of period common shares outstanding				174,511			173,603			173,633			173,666			143,071				174,511			143,071
ANNUALIZED PERFORMANCE METRICS
Return on average assets				2.13	%		2.08	%		0.66	%		0.54	%		1.86	%			2.11	%		1.86	%
Return on average assets excluding gain on acquisitions, merger expenses, FDIC loss share buy-out expense, reduced provision for loan losses as a result of a significant loan recovery, hurricane expenses & effect of tax rate change (non-GAAP)(1)				2.13	%		2.08	%		1.69	%		1.70	%		1.88	%			2.11	%		1.88	%
Return on average assets excluding intangible amortization (non-GAAP)(1)				2.32	%		2.27	%		0.73	%		0.59	%		1.96	%			2.30	%		1.96	%
Return on average assets excluding intangible amortization, provision for loan losses, gain on acquisitions, merger expenses, FDIC loss share buy-out expense, hurricane expenses and income taxes (ROA, as adjusted) (non-GAAP)(1)				3.15	%		3.07	%		3.10	%		2.94	%		3.19	%			3.11	%		3.25	%
Return on average common equity				13.54	%		13.38	%		4.17	%		3.88	%		13.83	%			13.46	%		13.84	%
Return on average tangible common equity excluding intangible amortization (non-GAAP)(1)				24.27	%		24.33	%		7.78	%		5.80	%		20.09	%			24.30	%		20.09	%
Efficiency ratio				36.74	%		37.83	%		37.05	%		53.77	%		37.48	%			37.28	%		39.12	%
Efficiency ratio, as adjusted (non-GAAP)(1)				37.03	%		37.97	%		37.35	%		39.12	%		37.29	%			37.49	%		37.13	%
Net interest margin - FTE				4.47	%		4.46	%		4.47	%		4.40	%		4.50	%			4.47	%		4.60	%
Fully taxable equivalent adjustment			$	1,403		$	1,209		$	1,983		$	1,846		$	2,016			$	2,612		$	4,027
Total revenue				194,234			186,781			186,273			145,370			147,280				381,015			288,244
Total purchase accounting accretion				10,669			10,608			12,397			7,174			8,497				21,276			16,145
Average purchase accounting loan discounts				153,624			164,122			178,027			97,978			104,384				159,443			101,403
OTHER OPERATING EXPENSES
Advertising			$	1,142		$	962		$	898		$	795		$	812			$	2,104		$	1,510
Merger and acquisition expenses				-			-			-			18,227			789				-			7,516
Amortization of intangibles				1,624			1,626			1,631			906			866				3,250			1,670
Electronic banking expense				1,828			1,878			1,777			1,712			1,654				3,706			3,173
Directors' fees				318			330			313			309			324				648			637
Due from bank service charges				242			219			254			472			456				461			876
FDIC and state assessment				2,788			1,608			1,476			1,293			1,182				4,396			2,470
Insurance				714			887			814			577			543				1,601			1,121
Legal and accounting				858			778			1,194			698			474				1,636			1,101
Other professional fees				1,601			1,639			1,537			1,436			1,233				3,240			2,386
Operating supplies				602			600			602			432			477				1,202			944
Postage				323			344			323			280			295				667			581
Telephone				371			373			347			305			398				744			722
Other expense				4,483			4,153			4,080			4,154			3,569				8,636			6,681
Total other operating expenses			$	16,894		$	15,397		$	15,246		$	31,596		$	13,072			$	32,291		$	31,388
(1) Calculation of this metric and the reconciliation to GAAP is included in the schedules accompanying this release.

Home BancShares, Inc.
Selected Financial Information
(Unaudited)
			June. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,
(Dollars in thousands)				2018			2018			2017			2017			2017
BALANCE SHEET RATIOS
Total loans to total deposits				101.51	%		99.32	%		99.45	%		98.44	%		100.86	%
Common equity to assets				15.51	%		15.63	%		15.25	%		15.48	%		13.58	%
Tangible common equity to tangible assets (non-GAAP)(1)				9.42	%		9.46	%		9.11	%		9.24	%		9.91	%
LOANS RECEIVABLE
Real estate
Commercial real estate loans
Non-farm/non-residential			$	4,734,315		$	4,658,209		$	4,600,117		$	4,532,402		$	3,368,663
Construction/land development				1,662,199			1,641,834			1,700,491			1,648,923			1,315,309
Agricultural				77,053			81,151			82,229			88,295			78,260
Residential real estate loans
Residential 1-4 family				1,960,841			1,915,346			1,970,311			1,968,688			1,513,888
Multifamily residential				540,526			464,194			441,303			497,910			398,781
Total real estate				8,974,934			8,760,734			8,794,451			8,736,218			6,674,901
Consumer				417,499			40,842			46,148			51,515			38,424
Commercial and industrial				1,287,637			1,324,173			1,297,397			1,296,485			994,827
Agricultural				55,768			50,770			49,815			57,489			69,697
Other				162,132			149,217			143,377			144,486			56,626
Loans receivable			$	10,897,970		$	10,325,736		$	10,331,188		$	10,286,193		$	7,834,475
Discount for credit losses on purchased loans			$	129,903		$	137,404		$	146,557		$	158,001		$	95,627
Purchased loans, net of discount for credit losses on purchased loans				3,522,753			3,232,004			3,464,990			3,653,079			1,355,922
ALLOWANCE FOR LOAN LOSSES
Balance, beginning of period			$	110,212		$	110,266		$	111,620		$	80,138		$	80,311
Loans charged off				2,132			2,540			6,936			4,424			1,405
Recoveries of loans previously charged off				714			886			656			883			845
Net loans (recovered)/charged off				1,418			1,654			6,280			3,541			560
Provision for loan losses				2,722			1,600			4,926			35,023			387
Balance, end of period			$	111,516		$	110,212		$	110,266		$	111,620		$	80,138
Net (recoveries) charge-offs to average total loans				0.05	%		0.06	%		0.24	%		0.18	%		0.03	%
Allowance for loan losses to total loans				1.02	%		1.07	%		1.07	%		1.09	%		1.02	%
NON-PERFORMING ASSETS
Non-performing loans
Non-accrual loans			$	37,082		$	36,266		$	34,032		$	34,794		$	32,426
Loans past due 90 days or more				19,696			13,223			10,665			29,183			14,442
Total non-performing loans				56,778			49,489			44,697			63,977			46,868
Other non-performing assets
Foreclosed assets held for sale, net				17,853			20,134			18,867			21,701			18,789
Other non-performing assets				3			3			3			3			3
Total other non-performing assets				17,856			20,137			18,870			21,704			18,792
Total non-performing assets			$	74,634		$	69,626		$	63,567		$	85,681		$	65,660
Allowance for loan losses for loans to non-performing loans				196.41	%		222.70	%		246.70	%		174.47	%		170.99	%
Non-performing loans to total loans				0.52	%		0.48	%		0.43	%		0.62	%		0.60	%
Non-performing assets to total assets				0.50	%		0.49	%		0.44	%		0.60	%		0.60	%
(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
		June 30, 2018									March 31, 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		$	288,643		$	1,206		1.68	%		$	245,815		$	929		1.53	%
Federal funds sold			679			12		7.09	%			9,682			6		0.25	%
Investment securities - taxable			1,528,613			8,979		2.36	%			1,560,464			8,970		2.33	%
Investment securities - non-taxable - FTE			398,067			4,476		4.51	%			345,217			3,997		4.70	%
Loans receivable - FTE			10,345,846			153,291		5.94	%			10,325,439			148,283		5.82	%
Total interest-earning assets			12,561,848			167,964		5.36	%			12,486,617			162,185		5.27	%
Non-earning assets			1,742,635									1,747,752
Total assets		$	14,304,483								$	14,234,369
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts		$	6,451,204		$	13,489		0.84	%		$	6,409,585		$	11,242		0.71	%
Time deposits			1,611,353			4,675		1.16	%			1,513,854			3,564		0.95	%
Total interest-bearing deposits			8,062,557			18,164		0.90	%			7,923,439			14,806		0.76	%
Federal funds purchased			46			-		0.00	%			78			1		5.20	%
Securities sold under agreement to repurchase			143,952			372		1.04	%			152,716			376		1.00	%
FHLB borrowed funds			928,357			4,245		1.83	%			1,150,091			4,580		1.62	%
Subordinated debentures			368,309			5,168		5.63	%			368,124			5,004		5.51	%
Total interest-bearing liabilities			9,503,221			27,949		1.18	%			9,594,448			24,767		1.05	%
Non-interest bearing liabilities
Non-interest bearing deposits			2,496,701									2,381,259
Other liabilities			53,149									44,360
Total liabilities			12,053,071									12,020,067
Shareholders' equity			2,251,412									2,214,302
Total liabilities and shareholders' equity		$	14,304,483								$	14,234,369
Net interest spread								4.18	%								4.22	%
Net interest income and margin - FTE					$	140,015		4.47	%					$	137,418		4.46	%

Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
		Year Ended
		June 30, 2018									June 30, 2017
		Average		Income/			Yield/				Average		Income/			Yield/
(Dollars in thousands)		Balance		Expense			Rate				Balance		Expense			Rate
ASSETS
Earning assets
Interest-bearing balances due from banks		$	267,347		$	2,135		1.61	%		$	237,617		$	1,035		0.88	%
Federal funds sold			5,156			18		0.70	%			1,305			6		0.93	%
Investment securities - taxable			1,544,451			17,949		2.34	%			1,183,588			11,912		2.03	%
Investment securities - non-taxable - FTE			371,788			8,473		4.60	%			346,895			9,598		5.58	%
Loans receivable - FTE			10,335,699			301,574		5.88	%			7,708,264			218,833		5.72	%
Total interest-earning assets			12,524,441			330,149		5.32	%			9,477,669			241,384		5.14	%
Non-earning assets			1,745,179									1,020,474
Total assets		$	14,269,620								$	10,498,143
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts		$	6,430,509		$	24,731		0.78	%		$	4,216,025		$	7,690		0.37	%
Time deposits			1,562,873			8,239		1.06	%			1,400,501			4,606		0.66	%
Total interest-bearing deposits			7,993,382			32,970		0.83	%			5,616,526			12,296		0.44	%
Federal funds purchased			62			1		3.25	%			-			-		0.00	%
Securities sold under agreement to repurchase			148,310			748		1.02	%			126,390			361		0.58	%
FHLB borrowed funds			1,038,612			8,825		1.71	%			1,274,823			7,299		1.15	%
Subordinated debentures			368,217			10,172		5.57	%			207,043			5,234		5.10	%
Total interest-bearing liabilities			9,548,583			52,716		1.11	%			7,224,782			25,190		0.70	%
Non-interest bearing liabilities
Non-interest bearing deposits			2,439,299									1,808,660
Other liabilities			48,779									52,062
Total liabilities			12,036,661									9,085,504
Shareholders' equity			2,232,959									1,412,639
Total liabilities and shareholders' equity		$	14,269,620								$	10,498,143
Net interest spread								4.21	%								4.44	%
Net interest income and margin - FTE					$	277,433		4.47	%					$	216,194		4.60	%

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
		Quarter Ended																Six Months Ended
(Dollars and shares in thousands,		Jun. 30,			Mar. 31			Dec. 31,			Sep. 30,			Jun. 30,				Jun. 30,			Jun. 30,
except per share data)			2018			2018			2017			2017			2017				2018			2017
EARNINGS, AS ADJUSTED
GAAP net income available to common shareholders (A)		$	76,025		$	73,064		$	23,309		$	14,821		$	50,097			$	149,089		$	96,953
Adjustments
Gain on acquisitions			-			-			-			-			-				-			(3,807	)
Merger and acquisition expenses			-			-			-			18,227			789				-			7,516
Hurricane expenses(2)			-			-			-			33,445			-				-			-
Effect of tax rate change			-			-			36,935			-			-				-			-
Total adjustments			-			-			36,935			51,672			789				-			3,709
Tax-effect of adjustments(3)			-			-			-			20,045			199				-			2,581
Adjustments after-tax (B)			-			-			36,935			31,627			590				-			1,128
Earnings, as adjusted (C)		$	76,025		$	73,064		$	60,244		$	46,448		$	50,687			$	149,089		$	98,081
Average diluted shares outstanding (D)			173,936			174,383			174,349			144,987			144,116				174,168			143,270
GAAP diluted earnings per share: A/D		$	0.44		$	0.42		$	0.13		$	0.10		$	0.35			$	0.86		$	0.68
Adjustments after-tax: B/D			-			-			0.22			0.22			-				-			-
Diluted earnings per common share excluding gain on acquisitions, merger expenses, hurricane expenses & effect of tax rate change: C/D		$	0.44		$	0.42		$	0.35		$	0.32		$	0.35			$	0.86		$	0.68
ANNUALIZED RETURN ON AVERAGE ASSETS
Return on average assets: A/H			2.13	%		2.08	%		0.66	%		0.54	%		1.86	%			2.11	%		1.86	%
Return on average assets excluding gain on acquisitions, merger expenses, hurricane expenses & effect of tax rate change: (A+F)/H			2.13	%		2.08	%		1.69	%		1.70	%		1.88	%			2.11	%		1.88	%
Return on average assets excluding intangible amortization: (A+C)/(H-I)			2.32	%		2.27	%		0.73	%		0.59	%		1.96	%			2.30	%		1.96	%
Return on average assets excluding intangible amortization, provision for loan losses, gain on acquisitions, merger expenses, hurricane expenses and income taxes (ROA, as adjusted): (A+B+D+E+G)/(H-I)			3.15	%		3.07	%		3.10	%		2.94	%		3.19	%			3.11	%		3.25	%
GAAP net income available to common shareholders (A)		$	76,025		$	73,064		$	23,309		$	14,821		$	50,097			$	149,089		$	96,953
Amortization of intangibles (B)			1,624			1,626			1,631			906			866				3,250			1,670
Amortization of intangibles after-tax (C)			1,200			1,201			991			551			526				2,401			1,015
Provision for loan losses excluding hurricane provision (D)			2,722			1,600			4,926			2,134			387				4,322			4,301
Total adjustments (E)			-			-			36,935			51,672			789				-			3,709
Adjustments after-tax (F)			-			-			36,935			31,627			590				-			1,128
Income tax expense excluding effect of tax rate change (G)			24,310			23,970			35,873			7,536			30,282				48,280			55,656
Average assets (H)			14,304,483			14,234,369			14,113,936			10,853,559			10,793,770				14,269,620			10,498,143
Average goodwill, core deposits & other intangible assets (I)			975,345			976,451			979,209			462,799			442,380				975,895			429,113
(2) Hurricane expenses includes $32,889 of provision for loan losses and $556 of damage expense related to Hurricane Irma.
(3) Effective tax rate of 39.225%, adjusted for non-taxable gain on acquisition and non-deductible merger-related costs.

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
		Quarter Ended																Six Months Ended
(Dollars and shares in thousands,		Jun. 30,			Mar. 31			Dec. 31,			Sep. 30,			Jun. 30,				Jun. 30,			Jun. 30,
except per share data)			2018			2018			2017			2017			2017				2018			2017
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY
Return on average common equity: A/C			13.54	%		13.38	%		4.17	%		3.88	%		13.83	%			13.46	%		13.84	%
Return on average tangible common equity excluding intangible amortization: (A+B)/(C-D)			24.27	%		24.33	%		7.78	%		5.80	%		20.09	%			24.30	%		20.09	%
GAAP net income available to common shareholders (A)		$	76,025		$	73,064		$	23,309		$	14,821		$	50,097			$	149,089		$	96,953
Amortization of intangibles after-tax (B)			1,200			1,201			991			551			526				2,401			1,015
Average common equity (C)			2,251,412			2,214,302			2,218,549			1,513,829			1,453,099				2,232,959			1,412,639
Average goodwill, core deposits & other intangible assets (D)			975,345			976,451			979,209			462,799			442,380				975,895			429,113
EFFICIENCY RATIO
Efficiency ratio: ((C-E)/(A+B+D))			36.74	%		37.83	%		37.05	%		53.77	%		37.48	%			37.28	%		39.12	%
Efficiency ratio, as adjusted: ((C-E-G)/(A+B+D-F))			37.03	%		37.97	%		37.35	%		39.12	%		37.29	%			37.49	%		37.13	%
									-			-			-				-			-
Net interest income (A)		$	138,612		$	136,209		$	136,969		$	106,769		$	107,352			$	274,821		$	212,167
Non-interest income (B)			27,673			25,805			27,292			21,457			24,417				53,478			50,887
Non-interest expense (C)			63,228			63,380			63,218			70,846			51,003				126,608			106,144
Fully taxable equivalent adjustment (D)			1,403			1,209			1,983			1,846			2,016				2,612			4,027
Amortization of intangibles (E)			1,624			1,626			1,631			906			866				3,250			1,670
Adjustments:
Non-interest income:
Gain on acquisition		$	-		$	-		$	-		$	-		$	-			$	-		$	3,807
Gain (loss) on OREO			1,046			405			176			335			393				1,451			514
Gain (loss) on SBA loans			262			182			-			163			387				444			575
Gain (loss) on branches, equipment and other assets, net			-			7			2			(1,337	)		431				7			375
Gain (loss) on securities			-			-			1,193			136			380				-			803
Recoveries on historic losses			-			-			-			-			-				-			-
Total non-interest income adjustments (F)		$	1,308		$	594		$	1,371		$	(703	)	$	1,591			$	1,902		$	6,074
Non-interest expense:
Merger Expenses		$	-		$	-		$	-		$	18,227		$	789			$	-		$	7,516
Hurricane damage expense			-			-			-			556			-				-			-
Vacant properties write-downs			-			-			-			-			47				-			47
Total non-interest expense adjustments (G)		$	-		$	-		$	-		$	18,783		$	836			$	-		$	7,563

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,
(Dollars in thousands)				2018			2018			2017			2017			2017
TANGIBLE BOOK VALUE PER COMMON SHARE
Book value per common share: A/B			$	13.26		$	12.89		$	12.70		$	12.71		$	10.32
Tangible book value per common share: (A-C-D)/B				7.52			7.27			7.07			7.06			7.23
Total stockholders' equity (A)			$	2,314,013		$	2,238,181		$	2,204,291		$	2,206,716		$	1,476,032
End of period common shares outstanding (B)				174,511			173,603			173,633			173,666			143,071
Goodwill (C)			$	956,418		$	927,949		$	927,949		$	929,129		$	420,941
Core deposit and other intangibles (D)				46,101			47,726			49,351			50,982			21,019
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
Equity to assets: B/A				15.51	%		15.63	%		15.25	%		15.48	%		13.58	%
Tangible common equity to tangible assets: (B-C-D)/(A-C-D)				9.42	%		9.46	%		9.11	%		9.24	%		9.91	%
										-			-			-
Total assets (A)			$	14,924,120		$	14,323,229		$	14,449,760		$	14,255,967		$	10,872,228
Total stockholders' equity (B)				2,314,013			2,238,181			2,204,291			2,206,716			1,476,032
Goodwill (C)				956,418			927,949			927,949			929,129			420,941
Core deposit and other intangibles (D)				46,101			47,726			49,351			50,982			21,019

Source: Home BancShares, Inc.