Home BancShares, Inc. Remains Steady and Solid in First Quarter, Margin Remains Unchanged
CONWAY, Ark., April 18, 2019 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, released first quarter earnings today that included a net interest margin that remained flat from the fourth quarter of 2018 at 4.30%.
Highlights of the First Quarter of 2019:
| Centennial Community Banking | Centennial CFG | |||||
| Performance Metric | Q1 2019 | Q4 2018 | Performance Metric | Q1 2019 | Q4 2018 | |
| Net Income | $58.1 million | $57.7 million | Net Income | $12.0 million | $12.2 million | |
| Total Revenue | $166.9 million | $165.9 million | Total Revenue | $31.1 million | $30.6 million | |
| ROA | 1.80% | 1.77% | ROA | 3.08% | 3.33% | |
| Net Interest Margin | 4.20% | 4.18% | Net Interest Margin | 5.34% | 5.50% | |
| Purchase Accounting Accretion | $8.3 million | $8.6 million | Purchase Accounting Accretion | $33,000 | $33,000 | |
| Shore Premier Finance | Consolidated | |||||
| Performance Metric | Q1 2019 | Q4 2018 | Performance Metric | Q1 2019 | Q4 2018 | |
| Net Income | $1.3 million | $1.1 million | Net Income | $71.4 million | $71.0 million | |
| Total Revenue | $5.2 million | $4.8 million | Total Revenue | $203.2 million | $201.3 million | |
| ROA | 1.15% | 1.06% | ROA | 1.92% | 1.90% | |
| Net Interest Margin | 3.04% | 3.29% | Net Interest Margin | 4.30% | 4.30% | |
| Purchase Accounting Accretion | $741,000 | $812,000 | Purchase Accounting Accretion | $9.1 million | $9.4 million | |
| ROTCE (non-GAAP)(1) | 21.53% | 21.08% | ||||
| Diluted Earnings Per Share | $0.42 | $0.41 | ||||
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
“Considering all the noise in the market the last two quarters, we are proud to maintain our net interest margin at 4.30% and to meet the earnings per share target of $0.42,” said John Allison, Chairman. “We think stability and good asset quality are important and outweigh the need for fast growth,” Allison continued.
“Centennial Community Banking saw improvement in its net interest margin for the 1st quarter with 4.20%, up from 4.18% in the fourth quarter of 2018. Our core banking footprint remained steady during the recent chaos in the economy,” said Tracy French, Centennial Bank President and Chief Executive Officer.
“With an increase in return on average assets, return on tangible common equity and meeting our EPS target, Home BancShares delivered another good solid quarter for our shareholders,” said Randy Sims, Home BancShares, Inc. Chief Executive Officer.
Operating Highlights
Our net interest margin was 4.30% for the three-month period ended March 31, 2019 and December 31, 2018. The yield on loans was 6.03% and 5.96% for the three months ended March 31, 2019 and December 31, 2018, respectively, as average loans increased from $10.88 billion to $11.04 billion. The rate on subordinated debentures increased from 5.61% as of December 31, 2018 to 5.78% as of March 31, 2019. Since the interest expense on our subordinated debentures is on the 30/360 accrual method, the increase was primarily due to having two less days in the first quarter of 2019 compared to the fourth quarter of 2018, plus the increase in the floating rates on our trust preferred securities. Additionally, the rate on interest bearing deposits increased to 1.34% as of March 31, 2019 from 1.22% as of December 31, 2018, with average balances of $8.50 billion and $8.20 billion, respectively. The net interest margin for the quarter ended March 31, 2019 remained flat when compared to the quarter ended December 31, 2018 as the result of an increase in average interest earning assets and yield on interest earning assets, which was offset by an increase in interest bearing liabilities and yield on interest bearing liabilities.
For the three months ended March 31, 2019 and December 31, 2018, we recognized $9.1 million and $9.4 million, respectively, in total net accretion for acquired loans and deposits. Purchase accounting accretion on acquired loans was $9.0 million and $9.4 million and average purchase accounting loan discounts were $131.6 million and $141.2 million for the three-month periods ended March 31, 2019 and December 31, 2018, respectively. Net accretion of time deposit premiums was $30,198 and $48,777 and net average remaining CD premiums were $357,000 and $396,000 for the three-month periods ended March 31, 2019 and December 31, 2018, respectively.
Net interest income on a fully taxable equivalent basis decreased $857,000, or 0.60%, to $140.8 million for the three-month period ended March 31, 2019, from $141.7 million for the three-month period ended December 31, 2018. This decrease in net interest income for the three-month period ended March 31, 2019 was the result of a $2.5 million increase in interest expense on interest bearing liabilities, which was partially offset by a $1.7 million increase in interest income. The $2.5 million increase in interest expense was primarily the result of a $2.8 million increase in interest expense on interest bearing deposits repricing in a higher interest rate environment, combined with a 3.7% increase in average interest-bearing deposits. The repricing of our interest-bearing liabilities in a higher interest rate environment resulted in an approximately $2.6 million increase in interest expense. The higher level of our interest-bearing liabilities resulted in an increase in interest expense of approximately $578,000. These increases were partially offset by a decrease of approximately $648,000 in interest expense due to there being two less days in the first quarter of 2019 compared to the fourth quarter of 2018. The $1.7 million increase in interest income was primarily the result of a 1.6% increase in interest earning assets. The higher level of earning assets resulted in an increase in interest income of approximately $2.6 million and a $2.7 million increase in earning asset yields. These increases were partially offset by a decrease of approximately $3.6 million in interest income due to there being two less days in the first quarter of 2019 compared to the fourth quarter of 2018.
Centennial CFG net interest margin was 5.34% for the quarter just ended compared to 5.50% for the quarter ended December 31, 2018. Centennial CFG net interest margin for the first quarter of 2019 includes average interest earning assets of $1.55 billion and net interest income of $20.4 million, compared to average interest earning assets of $1.46 billion and net interest income of $20.2 million for the quarter ended December 31, 2018. During 2018, Centennial CFG recognized $7.2 million of interest income from payoff events including minimum interest, default interest, acceleration of deferred origination fees and acceleration of other discounts. Centennial CFG 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. During the first quarter of 2019, Centennial CFG had no interest income events as a result of payoffs.
Centennial Community Banking (excluding Centennial CFG and Shore Premier Finance) net interest margin was 4.20% for the quarter just ended compared to 4.18% for the quarter ended December 31, 2018. The net interest margin for the first quarter of 2019 includes average interest earning assets of $11.31 billion and net interest income of $117.2 million, compared to average interest earning assets of $11.23 billion and net interest income of $118.2 million for the fourth quarter of 2018.
The acquisition of Shore Premier Finance is dilutive to our consolidated net interest margin by 3 basis points.
During the first quarter of 2019 and the fourth quarter of 2018, the Company did not record a provision for loan loss. The Company continues to see strong asset quality. Non-performing loans to total loans was 0.58% as of March 31, 2019 and December 31, 2018, and non-performing assets to total assets was 0.52% as of March 31, 2019 compared to 0.51% as of December 31, 2018. For the first quarter of 2019, net charge-offs were $2.4 million compared to net charge-offs of $1.4 million for the fourth quarter of 2018.
The Company reported $23.7 million of non-interest income for the first quarter of 2019, compared to $23.5 million for the fourth quarter of 2018. The most important components of the first quarter non-interest income were $6.6 million from other service charges and fees, $6.4 million from service charges on deposits accounts, $2.4 million from mortgage lending income, $2.5 million from other income and $3.5 million from dividends from the FHLB, FRB, FNBB & other equity investments. During the first quarter of 2019, the Company received a $2.1 million special dividend from an equity investment. This special dividend was related to a significant income realization event generated in the first quarter of 2019 from one of the underlying assets in the equity investment. The Company exceeded $10 billion in assets during the first quarter of 2017 and became subject to the Durbin Amendment to the Dodd-Frank Act interchange fee restrictions beginning in the third quarter of 2018. The Durbin Amendment negatively impacted debit card and ATM fees beginning in the second half of 2018. The Company estimates quarterly interchange fees are approximately $3.0 million dollars lower as a result of the Durbin Amendment.
Non-interest expense for the first quarter of 2019 was $69.1 million compared to $71.3 million for the fourth quarter of 2018. During the first quarter of 2019, the company incurred $900,000 in expense related to an outsourced special project. The Company also incurred $897,000 in hurricane expense associated with Hurricane Michael which made landfall in Mexico Beach, Florida on October 10, 2018. For the first quarter of 2019, our efficiency ratio was 41.01% compared to 42.18% reported for the fourth quarter of 2018.
Financial Condition
Total loans receivable were $10.98 billion at March 31, 2019 compared to $11.07 billion at December 31, 2018. Total deposits were $11.07 billion at March 31, 2019 compared to $10.90 billion at December 31, 2018. Total assets were $15.18 billion at March 31, 2019 compared to $15.30 billion at December 31, 2018.
During the first quarter 2019, the Company experienced approximately $92.9 million in organic loan decline. Centennial Community Banking experienced approximately $76.3 million in organic loan decline. Centennial CFG experienced $25.1 million of organic loan decline and had loans of $1.52 billion at March 31, 2019. Additionally, Shore Premier Finance experienced $8.5 million of loan growth and had loans of $436.2 million at March 31, 2019.
Non-performing loans at March 31, 2019 were $17.7 million, $40.0 million, $3.0 million, $3.5 million and zero in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $64.2 million. Non-performing assets at March 31, 2019 were $24.9 million, $48.2 million, $3.0 million, $3.5 million and zero in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $79.6 million.
The Company’s allowance for loan losses was $106.4 million at March 31, 2019, or 0.97% of total loans, compared to $108.8 million, or 0.98% of total loans, at December 31, 2018. As of March 31, 2019, and December 31, 2018, the Company’s allowance for loan losses was 165.7% and 169.4% of its total non-performing loans, respectively.
Stockholders’ equity was $2.36 billion at March 31, 2019 compared to $2.35 billion at December 31, 2018, an increase of $11.6 million. The increase in stockholders’ equity is primarily associated with the $51.0 million increase in retained earnings, $9.5 million decrease in comprehensive loss and the repurchase of $51.7 million of our common stock during the first quarter of 2019. Book value per common share was $14.04 at March 31, 2019 compared to $13.76 at December 31, 2018. Tangible book value per common share (non-GAAP) was $8.10 at March 31, 2019 compared to $7.90 at December 31, 2018, an annualized increase of 10.3%.
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, April 18, 2019. We encourage all participants to pre-register for the conference call using the following link: http://dpregister.com/10129659. 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: 10129659, which will be available until April 25, 2019 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 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 and tangible book value per common share--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 TownsellDirector of Investor RelationsHome BancShares, Inc.(501) 328-4625
| Home BancShares, Inc. | ||||||||||||||||||||
| Consolidated End of Period Balance Sheets | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | ||||||||||||||||
| (In thousands) | 2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 141,027 | $ | 175,024 | $ | 208,681 | $ | 197,658 | $ | 185,479 | ||||||||||
| Interest-bearing deposits with other banks | 421,443 | 482,915 | 323,376 | 298,085 | 325,122 | |||||||||||||||
| Cash and cash equivalents | 562,470 | 657,939 | 532,057 | 495,743 | 510,601 | |||||||||||||||
| Federal funds sold | 1,700 | 325 | 500 | 500 | 1,825 | |||||||||||||||
| Investment securities - available-for-sale | 2,013,123 | 1,785,862 | 1,744,430 | 1,718,704 | 1,693,018 | |||||||||||||||
| Investment securities - held-to-maturity | - | 192,776 | 199,266 | 204,401 | 213,731 | |||||||||||||||
| Loans receivable | 10,978,935 | 11,071,879 | 10,832,815 | 10,897,970 | 10,325,736 | |||||||||||||||
| Allowance for loan losses | (106,357 | ) | (108,791 | ) | (110,191 | ) | (111,516 | ) | (110,212 | ) | ||||||||||
| Loans receivable, net | 10,872,578 | 10,963,088 | 10,722,624 | 10,786,454 | 10,215,524 | |||||||||||||||
| Bank premises and equipment, net | 279,012 | 233,261 | 233,652 | 234,634 | 235,607 | |||||||||||||||
| Foreclosed assets held for sale | 14,466 | 13,236 | 13,507 | 17,853 | 20,134 | |||||||||||||||
| Cash value of life insurance | 149,353 | 148,621 | 148,014 | 147,281 | 147,424 | |||||||||||||||
| Accrued interest receivable | 50,288 | 48,945 | 48,909 | 45,682 | 45,361 | |||||||||||||||
| Deferred tax asset, net | 64,061 | 73,275 | 79,548 | 78,435 | 78,328 | |||||||||||||||
| Goodwill | 958,408 | 958,408 | 958,408 | 956,418 | 927,949 | |||||||||||||||
| Core deposit and other intangibles | 41,310 | 42,896 | 44,484 | 46,101 | 47,726 | |||||||||||||||
| Other assets | 172,732 | 183,806 | 187,339 | 191,914 | 186,001 | |||||||||||||||
| Total assets | $ | 15,179,501 | $ | 15,302,438 | $ | 14,912,738 | $ | 14,924,120 | $ | 14,323,229 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand and non-interest-bearing | $ | 2,519,175 | $ | 2,401,232 | $ | 2,482,857 | $ | 2,523,553 | $ | 2,473,602 | ||||||||||
| Savings and interest-bearing transaction accounts | 6,650,181 | 6,624,407 | 6,420,951 | 6,573,902 | 6,437,408 | |||||||||||||||
| Time deposits | 1,898,096 | 1,874,139 | 1,720,930 | 1,638,578 | 1,485,605 | |||||||||||||||
| Total deposits | 11,067,452 | 10,899,778 | 10,624,738 | 10,736,033 | 10,396,615 | |||||||||||||||
| Securities sold under agreements to repurchase | 152,239 | 143,679 | 142,146 | 139,750 | 150,315 | |||||||||||||||
| FHLB and other borrowed funds | 1,105,175 | 1,472,393 | 1,363,851 | 1,309,950 | 1,115,061 | |||||||||||||||
| Accrued interest payable and other liabilities | 124,172 | 67,912 | 72,381 | 55,971 | 54,845 | |||||||||||||||
| Subordinated debentures | 368,979 | 368,790 | 368,596 | 368,403 | 368,212 | |||||||||||||||
| Total liabilities | 12,818,017 | 12,952,552 | 12,571,712 | 12,610,107 | 12,085,048 | |||||||||||||||
| Stockholders' equity | ||||||||||||||||||||
| Common stock | 1,682 | 1,707 | 1,741 | 1,745 | 1,736 | |||||||||||||||
| Capital surplus | 1,560,904 | 1,609,810 | 1,668,106 | 1,693,337 | 1,671,141 | |||||||||||||||
| Retained earnings | 803,170 | 752,184 | 701,900 | 642,540 | 585,586 | |||||||||||||||
| Accumulated other comprehensive (loss) income | (4,272 | ) | (13,815 | ) | (30,721 | ) | (23,609 | ) | (20,282 | ) | ||||||||||
| Total stockholders' equity | 2,361,484 | 2,349,886 | 2,341,026 | 2,314,013 | 2,238,181 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 15,179,501 | $ | 15,302,438 | $ | 14,912,738 | $ | 14,924,120 | $ | 14,323,229 | ||||||||||
| Home BancShares, Inc. | |||||||||||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Quarter Ended | Three Months Ended | ||||||||||||||||||||||||
| Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Mar. 31, | Mar. 31, | |||||||||||||||||||
| (In thousands) | 2019 | 2018 | 2018 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||||
| Interest income | |||||||||||||||||||||||||
| Loans | $ | 163,848 | $ | 163,201 | $ | 166,334 | $ | 152,996 | $ | 148,065 | $ | 163,848 | $ | 148,065 | |||||||||||
| Investment securities | |||||||||||||||||||||||||
| Taxable | 10,706 | 9,873 | 9,011 | 8,979 | 8,970 | 10,706 | 8,970 | ||||||||||||||||||
| Tax-exempt | 3,379 | 3,456 | 3,427 | 3,368 | 3,006 | 3,379 | 3,006 | ||||||||||||||||||
| Deposits - other banks | 1,543 | 1,241 | 1,273 | 1,206 | 929 | 1,543 | 929 | ||||||||||||||||||
| Federal funds sold | 11 | 9 | 6 | 12 | 6 | 11 | 6 | ||||||||||||||||||
| Total interest income | 179,487 | 177,780 | 180,051 | 166,561 | 160,976 | 179,487 | 160,976 | ||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||
| Interest on deposits | 28,006 | 25,207 | 21,412 | 18,164 | 14,806 | 28,006 | 14,806 | ||||||||||||||||||
| Federal funds purchased | - | - | - | - | 1 | - | 1 | ||||||||||||||||||
| FHLB borrowed funds | 6,118 | 6,474 | 7,055 | 4,245 | 4,580 | 6,118 | 4,580 | ||||||||||||||||||
| Securities sold under agreements to repurchase | 634 | 602 | 472 | 372 | 376 | 634 | 376 | ||||||||||||||||||
| Subordinated debentures | 5,259 | 5,215 | 5,202 | 5,168 | 5,004 | 5,259 | 5,004 | ||||||||||||||||||
| Total interest expense | 40,017 | 37,498 | 34,141 | 27,949 | 24,767 | 40,017 | 24,767 | ||||||||||||||||||
| Net interest income | 139,470 | 140,282 | 145,910 | 138,612 | 136,209 | 139,470 | 136,209 | ||||||||||||||||||
| Provision for loan losses | - | - | - | 2,722 | 1,600 | - | 1,600 | ||||||||||||||||||
| Net interest income after provision for loan losses | 139,470 | 140,282 | 145,910 | 135,890 | 134,609 | 139,470 | 134,609 | ||||||||||||||||||
| Non-interest income | |||||||||||||||||||||||||
| Service charges on deposit accounts | 6,401 | 7,004 | 6,992 | 6,780 | 6,075 | 6,401 | 6,075 | ||||||||||||||||||
| Other service charges and fees | 6,563 | 7,598 | 9,041 | 9,797 | 10,155 | 6,563 | 10,155 | ||||||||||||||||||
| Trust fees | 403 | 290 | 437 | 379 | 446 | 403 | 446 | ||||||||||||||||||
| Mortgage lending income | 2,435 | 2,554 | 3,691 | 3,477 | 2,657 | 2,435 | 2,657 | ||||||||||||||||||
| Insurance commissions | 609 | 442 | 463 | 526 | 679 | 609 | 679 | ||||||||||||||||||
| Increase in cash value of life insurance | 736 | 737 | 735 | 730 | 654 | 736 | 654 | ||||||||||||||||||
| Dividends from FHLB, FRB, FNBB & other | 3,505 | 1,992 | 1,288 | 1,600 | 877 | 3,505 | 877 | ||||||||||||||||||
| Gain (loss) on SBA loans | 241 | 75 | 47 | 262 | 182 | 241 | 182 | ||||||||||||||||||
| Gain (loss) on branches, equipment and other assets, net | 79 | (25 | ) | (102 | ) | - | 7 | 79 | 7 | ||||||||||||||||
| Gain (loss) on OREO, net | 206 | 114 | 836 | 1,046 | 405 | 206 | 405 | ||||||||||||||||||
| Other income | 2,494 | 2,726 | 2,419 | 3,076 | 3,668 | 2,494 | 3,668 | ||||||||||||||||||
| Total non-interest income | 23,672 | 23,507 | 25,847 | 27,673 | 25,805 | 23,672 | 25,805 | ||||||||||||||||||
| Non-interest expense | |||||||||||||||||||||||||
| Salaries and employee benefits | 37,836 | 36,230 | 37,825 | 34,476 | 35,014 | 37,836 | 35,014 | ||||||||||||||||||
| Occupancy and equipment | 8,823 | 8,310 | 8,148 | 8,519 | 8,983 | 8,823 | 8,983 | ||||||||||||||||||
| Data processing expense | 3,970 | 3,642 | 3,461 | 3,339 | 3,986 | 3,970 | 3,986 | ||||||||||||||||||
| Other operating expenses | 18,428 | 23,090 | 16,689 | 16,894 | 15,397 | 18,428 | 15,397 | ||||||||||||||||||
| Total non-interest expense | 69,057 | 71,272 | 66,123 | 63,228 | 63,380 | 69,057 | 63,380 | ||||||||||||||||||
| Income before income taxes | 94,085 | 92,517 | 105,634 | 100,335 | 97,034 | 94,085 | 97,034 | ||||||||||||||||||
| Income tax expense | 22,735 | 21,487 | 25,350 | 24,310 | 23,970 | 22,735 | 23,970 | ||||||||||||||||||
| Net income | $ | 71,350 | $ | 71,030 | $ | 80,284 | $ | 76,025 | $ | 73,064 | $ | 71,350 | $ | 73,064 | |||||||||||
| Home BancShares, Inc. | ||||||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| Quarter Ended | Three Months Ended | |||||||||||||||||||||||||||
| (Dollars and shares in thousands, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Mar. 31, | Mar. 31, | |||||||||||||||||||||
| except per share data) | 2019 | 2018 | 2018 | 2018 | 2018 | 2019 | 2018 | |||||||||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||||||||||
| Diluted earnings per common share | $ | 0.42 | $ | 0.41 | $ | 0.46 | $ | 0.44 | $ | 0.42 | $ | 0.42 | $ | 0.42 | ||||||||||||||
| Diluted earnings per common share, as adjusted, excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense (non-GAAP)(1) | 0.42 | 0.44 | 0.46 | 0.44 | 0.42 | 0.42 | 0.42 | |||||||||||||||||||||
| Basic earnings per common share | 0.42 | 0.41 | 0.46 | 0.44 | 0.42 | 0.42 | 0.42 | |||||||||||||||||||||
| Dividends per share - common | 0.1200 | 0.1200 | 0.1200 | 0.1100 | 0.1100 | 0.1200 | 0.1100 | |||||||||||||||||||||
| Book value per common share | 14.04 | 13.76 | 13.44 | 13.26 | 12.89 | 14.04 | 12.89 | |||||||||||||||||||||
| Tangible book value per common share (non-GAAP)(1) | 8.10 | 7.90 | 7.68 | 7.52 | 7.27 | 8.10 | 7.27 | |||||||||||||||||||||
| STOCK INFORMATION | ||||||||||||||||||||||||||||
| Average common shares outstanding | 169,592 | 173,023 | 174,440 | 173,403 | 173,761 | 169,592 | 173,761 | |||||||||||||||||||||
| Average diluted shares outstanding | 169,592 | 173,311 | 174,867 | 173,936 | 174,383 | 169,592 | 174,383 | |||||||||||||||||||||
| End of period common shares outstanding | 168,173 | 170,720 | 174,135 | 174,511 | 173,603 | 168,173 | 173,603 | |||||||||||||||||||||
| ANNUALIZED PERFORMANCE METRICS | ||||||||||||||||||||||||||||
| Return on average assets | 1.92 | % | 1.90 | % | 2.14 | % | 2.13 | % | 2.08 | % | 1.92 | % | 2.08 | % | ||||||||||||||
| Return on average assets excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense (ROA, as adjusted) (non-GAAP)(1) | 1.91 | % | 2.03 | % | 2.14 | % | 2.13 | % | 2.08 | % | 1.91 | % | 2.08 | % | ||||||||||||||
| Return on average assets excluding intangible amortization (non-GAAP)(1) | 2.09 | % | 2.07 | % | 2.33 | % | 2.32 | % | 2.27 | % | 2.09 | % | 2.27 | % | ||||||||||||||
| Return on average common equity | 12.34 | % | 12.05 | % | 13.74 | % | 13.54 | % | 13.38 | % | 12.34 | % | 13.38 | % | ||||||||||||||
| Return on average common equity excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROE, as adjusted) (non-GAAP)(1) | 12.30 | % | 12.86 | % | 13.74 | % | 13.54 | % | 13.38 | % | 12.30 | % | 13.38 | % | ||||||||||||||
| Return on average tangible common equity (non-GAAP)(1) | 21.53 | % | 21.08 | % | 24.20 | % | 23.90 | % | 23.94 | % | 21.53 | % | 23.94 | % | ||||||||||||||
| Return on average tangible common equity excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROTCE, as adjusted) (non-GAAP)(1) | 21.45 | % | 22.50 | % | 24.20 | % | 23.90 | % | 23.94 | % | 21.45 | % | 23.94 | % | ||||||||||||||
| Efficiency ratio | 41.01 | % | 42.18 | % | 37.23 | % | 36.74 | % | 37.83 | % | 41.01 | % | 37.83 | % | ||||||||||||||
| Efficiency ratio, as adjusted (non-GAAP)(1) | 40.58 | % | 38.30 | % | 37.40 | % | 37.03 | % | 37.97 | % | 40.58 | % | 37.97 | % | ||||||||||||||
| Net interest margin - FTE | 4.30 | % | 4.30 | % | 4.46 | % | 4.47 | % | 4.46 | % | 4.30 | % | 4.46 | % | ||||||||||||||
| Fully taxable equivalent adjustment | $ | 1,367 | $ | 1,412 | $ | 1,489 | $ | 1,403 | $ | 1,209 | $ | 1,367 | $ | 1,209 | ||||||||||||||
| Total revenue | 203,159 | 201,287 | 205,898 | 194,234 | 186,781 | 203,159 | 186,781 | |||||||||||||||||||||
| Total purchase accounting accretion | 9,055 | 9,432 | 10,744 | 10,669 | 10,608 | 9,055 | 10,608 | |||||||||||||||||||||
| Average purchase accounting loan discounts | 131,596 | 141,244 | 151,377 | 153,624 | 164,122 | 131,596 | 164,122 | |||||||||||||||||||||
| OTHER OPERATING EXPENSES | ||||||||||||||||||||||||||||
| Advertising | $ | 1,051 | $ | 1,214 | $ | 1,154 | $ | 1,142 | $ | 962 | $ | 1,051 | $ | 962 | ||||||||||||||
| Merger and acquisition expenses | - | 6,013 | - | - | - | - | - | |||||||||||||||||||||
| Amortization of intangibles | 1,587 | 1,587 | 1,617 | 1,624 | 1,626 | 1,587 | 1,626 | |||||||||||||||||||||
| Electronic banking expense | 1,903 | 1,969 | 1,947 | 1,828 | 1,878 | 1,903 | 1,878 | |||||||||||||||||||||
| Directors' fees | 434 | 319 | 314 | 318 | 330 | 434 | 330 | |||||||||||||||||||||
| Due from bank service charges | 238 | 289 | 253 | 242 | 219 | 238 | 219 | |||||||||||||||||||||
| FDIC and state assessment | 1,710 | 1,869 | 2,293 | 2,788 | 1,608 | 1,710 | 1,608 | |||||||||||||||||||||
| Hurricane expense | 897 | 470 | - | - | - | 897 | - | |||||||||||||||||||||
| Insurance | 697 | 737 | 762 | 714 | 887 | 697 | 887 | |||||||||||||||||||||
| Legal and accounting | 981 | 1,151 | 761 | 858 | 778 | 981 | 778 | |||||||||||||||||||||
| Other professional fees | 2,812 | 1,465 | 1,748 | 1,601 | 1,639 | 2,812 | 1,639 | |||||||||||||||||||||
| Operating supplies | 536 | 510 | 510 | 602 | 600 | 536 | 600 | |||||||||||||||||||||
| Postage | 326 | 325 | 311 | 323 | 344 | 326 | 344 | |||||||||||||||||||||
| Telephone | 303 | 324 | 337 | 371 | 373 | 303 | 373 | |||||||||||||||||||||
| Other expense | 4,953 | 4,848 | 4,682 | 4,483 | 4,153 | 4,953 | 4,153 | |||||||||||||||||||||
| Total other operating expenses | $ | 18,428 | $ | 23,090 | $ | 16,689 | $ | 16,894 | $ | 15,397 | $ | 18,428 | $ | 15,397 | ||||||||||||||
| (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) | ||||||||||||||||||||
| Mar. 31, | Dec. 31, | Sep. 30, | June. 30, | Mar. 31, | ||||||||||||||||
| (Dollars in thousands) | 2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||
| BALANCE SHEET RATIOS | ||||||||||||||||||||
| Total loans to total deposits | 99.20 | % | 101.58 | % | 101.96 | % | 101.51 | % | 99.32 | % | ||||||||||
| Common equity to assets | 15.56 | % | 15.36 | % | 15.70 | % | 15.51 | % | 15.63 | % | ||||||||||
| Tangible common equity to tangible assets (non-GAAP)(1) | 9.60 | % | 9.43 | % | 9.62 | % | 9.42 | % | 9.46 | % | ||||||||||
| LOANS RECEIVABLE | ||||||||||||||||||||
| Real estate | ||||||||||||||||||||
| Commercial real estate loans | ||||||||||||||||||||
| Non-farm/non-residential | $ | 4,623,174 | $ | 4,806,684 | $ | 4,685,827 | $ | 4,734,315 | $ | 4,658,209 | ||||||||||
| Construction/land development | 1,649,303 | 1,546,035 | 1,550,910 | 1,662,199 | 1,641,834 | |||||||||||||||
| Agricultural | 76,092 | 76,433 | 72,930 | 77,053 | 81,151 | |||||||||||||||
| Residential real estate loans | ||||||||||||||||||||
| Residential 1-4 family | 1,947,119 | 1,975,586 | 1,982,666 | 1,960,841 | 1,915,346 | |||||||||||||||
| Multifamily residential | 538,098 | 560,475 | 608,608 | 540,526 | 464,194 | |||||||||||||||
| Total real estate | 8,833,786 | 8,965,213 | 8,900,941 | 8,974,934 | 8,760,734 | |||||||||||||||
| Consumer | 448,093 | 443,105 | 428,192 | 417,499 | 40,842 | |||||||||||||||
| Commercial and industrial | 1,505,773 | 1,476,331 | 1,303,841 | 1,287,637 | 1,324,173 | |||||||||||||||
| Agricultural | 58,966 | 48,562 | 58,644 | 55,768 | 50,770 | |||||||||||||||
| Other | 132,317 | 138,668 | 141,197 | 162,132 | 149,217 | |||||||||||||||
| Loans receivable | $ | 10,978,935 | $ | 11,071,879 | $ | 10,832,815 | $ | 10,897,970 | $ | 10,325,736 | ||||||||||
| Discount for credit losses on purchased loans | $ | 106,617 | $ | 113,648 | $ | 120,849 | $ | 129,903 | $ | 137,404 | ||||||||||
| Purchased loans, net of discount for credit losses on purchased loans | 2,712,315 | 2,900,284 | 3,081,695 | 3,522,753 | 3,232,004 | |||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
| Balance, beginning of period | $ | 108,791 | $ | 110,191 | $ | 111,516 | $ | 110,212 | $ | 110,266 | ||||||||||
| Loans charged off | 3,391 | 1,814 | 2,501 | 2,132 | 2,540 | |||||||||||||||
| Recoveries of loans previously charged off | 957 | 414 | 1,176 | 714 | 886 | |||||||||||||||
| Net loans (recovered)/charged off | 2,434 | 1,400 | 1,325 | 1,418 | 1,654 | |||||||||||||||
| Provision for loan losses | - | - | - | 2,722 | 1,600 | |||||||||||||||
| Balance, end of period | $ | 106,357 | $ | 108,791 | $ | 110,191 | $ | 111,516 | $ | 110,212 | ||||||||||
| Net (recoveries) charge-offs to average total loans | 0.09 | % | 0.05 | % | 0.05 | % | 0.05 | % | 0.06 | % | ||||||||||
| Allowance for loan losses to total loans | 0.97 | % | 0.98 | % | 1.02 | % | 1.02 | % | 1.07 | % | ||||||||||
| NON-PERFORMING ASSETS | ||||||||||||||||||||
| Non-performing loans | ||||||||||||||||||||
| Non-accrual loans | $ | 49,616 | $ | 47,083 | $ | 36,198 | $ | 37,082 | $ | 36,266 | ||||||||||
| Loans past due 90 days or more | 14,577 | 17,159 | 20,267 | 19,696 | 13,223 | |||||||||||||||
| Total non-performing loans | 64,193 | 64,242 | 56,465 | 56,778 | 49,489 | |||||||||||||||
| Other non-performing assets | ||||||||||||||||||||
| Foreclosed assets held for sale, net | 14,466 | 13,236 | 13,507 | 17,853 | 20,134 | |||||||||||||||
| Other non-performing assets | 947 | 497 | 405 | 3 | 3 | |||||||||||||||
| Total other non-performing assets | 15,413 | 13,733 | 13,912 | 17,856 | 20,137 | |||||||||||||||
| Total non-performing assets | $ | 79,606 | $ | 77,975 | $ | 70,377 | $ | 74,634 | $ | 69,626 | ||||||||||
| Allowance for loan losses for loans to non-performing loans | 165.68 | % | 169.35 | % | 195.15 | % | 196.41 | % | 222.70 | % | ||||||||||
| Non-performing loans to total loans | 0.58 | % | 0.58 | % | 0.52 | % | 0.52 | % | 0.48 | % | ||||||||||
| Non-performing assets to total assets | 0.52 | % | 0.51 | % | 0.47 | % | 0.50 | % | 0.49 | % | ||||||||||
| (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 | |||||||||||||||||
| March 31, 2019 | December 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 | $ | 272,410 | $ | 1,543 | 2.30% | $ | 244,551 | $ | 1,241 | 2.01% | |||||||
| Federal funds sold | 1,491 | 11 | 2.99% | 741 | 9 | 4.82% | |||||||||||
| Investment securities - taxable | 1,595,605 | 10,706 | 2.72% | 1,553,467 | 9,873 | 2.52% | |||||||||||
| Investment securities - non-taxable - FTE | 390,754 | 4,424 | 4.59% | 400,742 | 4,453 | 4.41% | |||||||||||
| Loans receivable - FTE | 11,036,503 | 164,170 | 6.03% | 10,884,911 | 163,616 | 5.96% | |||||||||||
| Total interest-earning assets | 13,296,763 | 180,854 | 5.52% | 13,084,412 | 179,192 | 5.43% | |||||||||||
| Non-earning assets | 1,782,909 | 1,754,567 | |||||||||||||||
| Total assets | $ | 15,079,672 | $ | 14,838,979 | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
| Liabilities | |||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 6,596,895 | $ | 19,537 | 1.20% | $ | 6,405,419 | $ | 17,873 | 1.11% | |||||||
| Time deposits | 1,903,373 | 8,469 | 1.80% | 1,794,358 | 7,334 | 1.62% | |||||||||||
| Total interest-bearing deposits | 8,500,268 | 28,006 | 1.34% | 8,199,777 | 25,207 | 1.22% | |||||||||||
| Securities sold under agreement to repurchase | 150,803 | 634 | 1.71% | 147,895 | 602 | 1.61% | |||||||||||
| FHLB borrowed funds | 1,159,629 | 6,118 | 2.14% | 1,242,985 | 6,474 | 2.07% | |||||||||||
| Subordinated debentures | 368,884 | 5,259 | 5.78% | 368,695 | 5,215 | 5.61% | |||||||||||
| Total interest-bearing liabilities | 10,179,584 | 40,017 | 1.59% | 9,959,352 | 37,498 | 1.49% | |||||||||||
| Non-interest bearing liabilities | |||||||||||||||||
| Non-interest bearing deposits | 2,439,520 | 2,464,003 | |||||||||||||||
| Other liabilities | 115,911 | 76,822 | |||||||||||||||
| Total liabilities | 12,735,015 | 12,500,177 | |||||||||||||||
| Shareholders' equity | 2,344,657 | 2,338,802 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 15,079,672 | $ | 14,838,979 | |||||||||||||
| Net interest spread | 3.93% | 3.94% | |||||||||||||||
| Net interest income and margin - FTE | $ | 140,837 | 4.30% | $ | 141,694 | 4.30% | |||||||||||
| Home BancShares, Inc. | |||||||||||||||||
| Consolidated Net Interest Margin | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| March 31, 2019 | 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 | $ | 272,410 | $ | 1,543 | 2.30% | $ | 245,815 | $ | 929 | 1.53% | |||||||
| Federal funds sold | 1,491 | 11 | 2.99% | 9,682 | 6 | 0.25% | |||||||||||
| Investment securities - taxable | 1,595,605 | 10,706 | 2.72% | 1,560,464 | 8,970 | 2.33% | |||||||||||
| Investment securities - non-taxable - FTE | 390,754 | 4,424 | 4.59% | 345,217 | 3,997 | 4.70% | |||||||||||
| Loans receivable - FTE | 11,036,503 | 164,170 | 6.03% | 10,325,439 | 148,283 | 5.82% | |||||||||||
| Total interest-earning assets | 13,296,763 | 180,854 | 5.52% | 12,486,617 | 162,185 | 5.27% | |||||||||||
| Non-earning assets | 1,782,909 | 1,747,752 | |||||||||||||||
| Total assets | $ | 15,079,672 | $ | 14,234,369 | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
| Liabilities | |||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 6,596,895 | $ | 19,537 | 1.20% | $ | 6,409,585 | $ | 11,242 | 0.71% | |||||||
| Time deposits | 1,903,373 | 8,469 | 1.80% | 1,513,854 | 3,564 | 0.95% | |||||||||||
| Total interest-bearing deposits | 8,500,268 | 28,006 | 1.34% | 7,923,439 | 14,806 | 0.76% | |||||||||||
| Federal funds purchased | - | - | 0.00% | 78 | 1 | 5.20% | |||||||||||
| Securities sold under agreement to repurchase | 150,803 | 634 | 1.71% | 152,716 | 376 | 1.00% | |||||||||||
| FHLB borrowed funds | 1,159,629 | 6,118 | 2.14% | 1,150,091 | 4,580 | 1.62% | |||||||||||
| Subordinated debentures | 368,884 | 5,259 | 5.78% | 368,124 | 5,004 | 5.51% | |||||||||||
| Total interest-bearing liabilities | 10,179,584 | 40,017 | 1.59% | 9,594,448 | 24,767 | 1.05% | |||||||||||
| Non-interest bearing liabilities | |||||||||||||||||
| Non-interest bearing deposits | 2,439,520 | 2,381,259 | |||||||||||||||
| Other liabilities | 115,911 | 44,360 | |||||||||||||||
| Total liabilities | 12,735,015 | 12,020,067 | |||||||||||||||
| Shareholders' equity | 2,344,657 | 2,214,302 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 15,079,672 | $ | 14,234,369 | |||||||||||||
| Net interest spread | 3.93% | 4.22% | |||||||||||||||
| Net interest income and margin - FTE | $ | 140,837 | 4.30% | $ | 137,418 | 4.46% | |||||||||||
| Home BancShares, Inc. | |||||||||||||||||||||||
| Non-GAAP Reconciliations | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Quarter Ended | Three Months Ended | ||||||||||||||||||||||
| (Dollars and shares in thousands, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Mar. 31, | Mar. 31, | ||||||||||||||||
| except per share data) | 2019 | 2018 | 2018 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||
| EARNINGS, AS ADJUSTED | |||||||||||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 71,350 | $ | 71,030 | $ | 80,284 | $ | 76,025 | $ | 73,064 | $ | 71,350 | $ | 73,064 | |||||||||
| Adjustments | |||||||||||||||||||||||
| 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 adjustments | (337 | ) | 6,483 | - | - | - | (337 | ) | - | ||||||||||||||
| Tax-effect of adjustments | (88 | ) | 1,694 | - | - | - | (88 | ) | - | ||||||||||||||
| Adjustments after-tax (B) | (249 | ) | 4,789 | - | - | - | (249 | ) | - | ||||||||||||||
| Earnings, as adjusted (C) | $ | 71,101 | $ | 75,819 | $ | 80,284 | $ | 76,025 | $ | 73,064 | $ | 71,101 | $ | 73,064 | |||||||||
| Average diluted shares outstanding (D) | 169,592 | 173,311 | 174,867 | 173,936 | 174,383 | 169,592 | 174,383 | ||||||||||||||||
| GAAP diluted earnings per share: (A/D) | $ | 0.42 | $ | 0.41 | $ | 0.46 | $ | 0.44 | $ | 0.42 | $ | 0.42 | $ | 0.42 | |||||||||
| Adjustments after-tax: (B/D) | - | 0.03 | - | - | - | - | - | ||||||||||||||||
| Diluted earnings per common share excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (C/D) | $ | 0.42 | $ | 0.44 | $ | 0.46 | $ | 0.44 | $ | 0.42 | $ | 0.42 | $ | 0.42 | |||||||||
| ANNUALIZED RETURN ON AVERAGE ASSETS | |||||||||||||||||||||||
| Return on average assets: (A/F) | 1.92 | % | 1.90 | % | 2.14 | % | 2.13 | % | 2.08 | % | 1.92 | % | 2.08 | % | |||||||||
| Return on average assets excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROA, as adjusted) ((A+E)/F) | 1.91 | % | 2.03 | % | 2.14 | % | 2.13 | % | 2.08 | % | 1.91 | % | 2.08 | % | |||||||||
| Return on average assets excluding intangible amortization: ((A+C)/(F-G)) | 2.09 | % | 2.07 | % | 2.33 | % | 2.32 | % | 2.27 | % | 2.09 | % | 2.27 | % | |||||||||
| GAAP net income available to common shareholders (A) | $ | 71,350 | $ | 71,030 | $ | 80,284 | $ | 76,025 | $ | 73,064 | $ | 71,350 | $ | 73,064 | |||||||||
| Amortization of intangibles (B) | 1,587 | 1,587 | 1,617 | 1,624 | 1,626 | 1,587 | 1,626 | ||||||||||||||||
| Amortization of intangibles after-tax (C) | 1,172 | 1,172 | 1,194 | 1,200 | 1,201 | 1,172 | 1,201 | ||||||||||||||||
| Total adjustments (D) | (337 | ) | 6,483 | - | - | - | (337 | ) | - | ||||||||||||||
| Adjustments after-tax (E) | (249 | ) | 4,789 | - | - | - | (249 | ) | - | ||||||||||||||
| Average assets (F) | 15,079,672 | 14,838,979 | 14,880,931 | 14,304,483 | 14,234,369 | 15,079,672 | 14,234,369 | ||||||||||||||||
| Average goodwill, core deposits & other intangible assets (G) | 1,000,494 | 1,002,070 | 1,001,843 | 975,345 | 976,451 | 1,000,494 | 976,451 | ||||||||||||||||
| Home BancShares, Inc. | |||||||||||||||||||||||
| Non-GAAP Reconciliations | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Quarter Ended | Three Months Ended | ||||||||||||||||||||||
| (Dollars and shares in thousands, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Mar. 31, | Mar. 31, | ||||||||||||||||
| except per share data) | 2019 | 2018 | 2018 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||
| ANNUALIZED RETURN ON AVERAGE COMMON EQUITY | |||||||||||||||||||||||
| Return on average common equity: (A/C) | 12.34 | % | 12.05 | % | 13.74 | % | 13.54 | % | 13.38 | % | 12.34 | % | 13.38 | % | |||||||||
| Return on average common equity excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROE, as adjusted) ((A+B)/C) | 12.30 | % | 12.86 | % | 13.74 | % | 13.54 | % | 13.38 | % | 12.30 | % | 13.38 | % | |||||||||
| Return on average tangible common equity: (A/(C-D)) | 21.53 | % | 21.08 | % | 24.20 | % | 23.90 | % | 23.94 | % | 21.53 | % | 23.94 | % | |||||||||
| Return on average tangible common equity excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROTCE, as adjusted) ((A+B)/(C-D)) | 21.45 | % | 22.50 | % | 24.20 | % | 23.90 | % | 23.94 | % | 21.45 | % | 23.94 | % | |||||||||
| GAAP net income available to common shareholders (A) | $ | 71,350 | $ | 71,030 | $ | 80,284 | $ | 76,025 | $ | 73,064 | $ | 71,350 | $ | 73,064 | |||||||||
| Adjustments after-tax (B) | (249 | ) | 4,789 | - | - | - | (249 | ) | - | ||||||||||||||
| Average common equity (C) | 2,344,657 | 2,338,802 | 2,317,930 | 2,251,412 | 2,214,302 | 2,344,657 | 2,214,302 | ||||||||||||||||
| Average goodwill, core deposits & other intangible assets (D) | 1,000,494 | 1,002,070 | 1,001,843 | 975,345 | 976,451 | 1,000,494 | 976,451 | ||||||||||||||||
| EFFICIENCY RATIO | |||||||||||||||||||||||
| Efficiency ratio: ((C-E)/(A+B+D)) | 41.01 | % | 42.18 | % | 37.23 | % | 36.74 | % | 37.83 | % | 41.01 | % | 37.83 | % | |||||||||
| Efficiency ratio, as adjusted: ((C-E-G)/(A+B+D-F)) | 40.58 | % | 38.30 | % | 37.40 | % | 37.03 | % | 37.97 | % | 40.58 | % | 37.97 | % | |||||||||
| Net interest income (A) | $ | 139,470 | $ | 140,282 | $ | 145,910 | $ | 138,612 | $ | 136,209 | $ | 139,470 | $ | 136,209 | |||||||||
| Non-interest income (B) | 23,672 | 23,507 | 25,847 | 27,673 | 25,805 | 23,672 | 25,805 | ||||||||||||||||
| Non-interest expense (C) | 69,057 | 71,272 | 66,123 | 63,228 | 63,380 | 69,057 | 63,380 | ||||||||||||||||
| Fully taxable equivalent adjustment (D) | 1,367 | 1,412 | 1,489 | 1,403 | 1,209 | 1,367 | 1,209 | ||||||||||||||||
| Amortization of intangibles (E) | 1,587 | 1,587 | 1,617 | 1,624 | 1,626 | 1,587 | 1,626 | ||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||||
| Special dividend from equity investment | $ | 2,134 | $ | - | $ | - | $ | - | $ | - | $ | 2,134 | $ | - | |||||||||
| Gain (loss) on OREO | 206 | 114 | 836 | 1,046 | 405 | 206 | 405 | ||||||||||||||||
| Gain (loss) on SBA loans | 241 | 75 | 47 | 262 | 182 | 241 | 182 | ||||||||||||||||
| Gain (loss) on branches, equipment and other assets, net | 79 | (25 | ) | (102 | ) | - | 7 | 79 | 7 | ||||||||||||||
| Total non-interest income adjustments (F) | $ | 2,660 | $ | 164 | $ | 781 | $ | 1,308 | $ | 594 | $ | 2,660 | $ | 594 | |||||||||
| Non-interest expense: | |||||||||||||||||||||||
| Merger Expenses | $ | - | $ | 6,013 | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Hurricane damage expense | 897 | 470 | - | - | - | 897 | - | ||||||||||||||||
| Outsourced special project expense | 900 | - | - | - | - | 900 | - | ||||||||||||||||
| Total non-interest expense adjustments (G) | $ | 1,797 | $ | 6,483 | $ | - | $ | - | $ | - | $ | 1,797 | $ | - | |||||||||
| Home BancShares, Inc. | ||||||||||||||||||||
| Non-GAAP Reconciliations | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | ||||||||||||||||
| (Dollars in thousands) | 2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||
| TANGIBLE BOOK VALUE PER COMMON SHARE | ||||||||||||||||||||
| Book value per common share: (A/B) | $ | 14.04 | $ | 13.76 | $ | 13.44 | $ | 13.26 | $ | 12.89 | ||||||||||
| Tangible book value per common share: ((A-C-D)/B) | 8.10 | 7.90 | 7.68 | 7.52 | 7.27 | |||||||||||||||
| Total stockholders' equity (A) | $ | 2,361,484 | $ | 2,349,886 | $ | 2,341,026 | $ | 2,314,013 | $ | 2,238,181 | ||||||||||
| End of period common shares outstanding (B) | 168,173 | 170,720 | 174,135 | 174,511 | 173,603 | |||||||||||||||
| Goodwill (C) | $ | 958,408 | $ | 958,408 | $ | 958,408 | $ | 956,418 | $ | 927,949 | ||||||||||
| Core deposit and other intangibles (D) | 41,310 | 42,896 | 44,484 | 46,101 | 47,726 | |||||||||||||||
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | ||||||||||||||||||||
| Equity to assets: (B/A) | 15.56 | % | 15.36 | % | 15.70 | % | 15.51 | % | 15.63 | % | ||||||||||
| Tangible common equity to tangible assets: ((B-C-D)/(A-C-D)) | 9.60 | % | 9.43 | % | 9.62 | % | 9.42 | % | 9.46 | % | ||||||||||
| Total assets (A) | $ | 15,179,501 | $ | 15,302,438 | $ | 14,912,738 | $ | 14,924,120 | $ | 14,323,229 | ||||||||||
| Total stockholders' equity (B) | 2,361,484 | 2,349,886 | 2,341,026 | 2,314,013 | 2,238,181 | |||||||||||||||
| Goodwill (C) | 958,408 | 958,408 | 958,408 | 956,418 | 927,949 | |||||||||||||||
| Core deposit and other intangibles (D) | 41,310 | 42,896 | 44,484 | 46,101 | 47,726 | |||||||||||||||
