CONWAY, Ark., Oct. 19, 2017 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ:HOMB), parent company of Centennial Bank, today announced a quarterly profit of $14.8 million for the third quarter of 2017 compared to $43.6 million, for the same quarter in 2016. Diluted earnings per share for the third quarter of 2017 was $0.10 per share compared to $0.31 per share for the same period in 2016.
The Company’s third quarter earnings were significantly impacted by Hurricane Irma which made initial landfall in the Florida Keys and a second landfall just south of Naples, Florida, as a Category 4 hurricane on September 10, 2017. While the total impact of this hurricane on Home BancShares’s financial condition and results of operation may not be known for some time, the Company has included in third quarter earnings, certain charges, including the establishment of reserves, related to the hurricane. Based on initial assessments of the potential credit impact and damage, the Company has accrued $33.4 million of pre-tax hurricane expenses. The $33.4 million of hurricane expenses include the following items: $32.9 million to establish a storm-related provision for loan losses and a $556,000 charge related to direct expenses incurred through September 30, 2017.
Excluding the previously mentioned impact of Hurricane Irma and the $18.2 million of merger expenses associated with the Stonegate acquisition, third quarter 2017 after-tax non-fundamental earnings were $46.4 million, an increase of 1.1%, from third quarter 2016 after-tax non-fundamental earnings.
“We are pleased with the successful completion of our substantial acquisition of Stonegate Bank during the third quarter of 2017,” said John Allison, Chairman. “Throughout the remainder of the year, we will remain extremely focused on gaining efficiencies from our merger, while strategically investing for growth and building a quality franchise. Despite the challenges that came with the recent hurricane and completing a major acquisition, we achieved diluted earnings per share excluding merger and hurricane expenses of $0.32 per share for the third quarter of 2017.”
“A significant portion of Home BancShares’s South Florida market area and customer base have been adversely impacted by Hurricane Irma,” stated Tracy French, Centennial Bank President and Chief Executive Officer. “Our sincere sympathy goes out to all affected by this storm. Home BancShares has been deeply impacted by the storm with many of our customers and employees losing homes and several of our banking facilities damaged or destroyed. Immediately after the storms passed, we secured our people and their families, ensured a safe working environment for our associates and focused our entire organization on serving our customers’ needs. Home BancShares is working diligently to assist our customers and communities in the rebuilding process. We are proud of our associates in the outstanding teamwork and care they have shown during this challenging time.”
Randy Sims, President and CEO of Home BancShares, remarked, “The actions the Company has demonstrated so far this year, especially surrounding the recent hurricane, reflect critical elements of our mission statement and community banking philosophy: a strong sense of community, exceptional customer service, shareholder focus, and high performing growth.”
Operating Highlights
Accretion yield decreased approximately $1.3 million from $8.5 million for the second quarter of 2017 to $7.2 million for third quarter of 2017. Each quarter we perform credit impairment tests on the loans acquired in our acquisitions. During our third quarter 2017 impairment testing, several pools were determined to have a material projected credit improvement. This projected credit improvement offset by the expected decline in accretion income from the maturing and reduction of pay-offs in the acquired loan portfolios, resulted in a net decline of recognized accretion income when compared to the second quarter of 2017. The net decline of recognized accretion income when compared to the second quarter of 2017 is primarily due to pay-off accretion decreasing from $2.6 million to $1.7 million.
Net interest margin, on a fully taxable equivalent basis, was 4.40% for the quarter just ended compared to 4.86% for the same quarter in 2016 and compared to 4.50% for the second quarter of 2017. The net interest margin, excluding accretion yield, decreased when comparing the second quarter of 2017 to the third quarter of 2017 at 4.11% and 4.07%, respectively. The decrease in net interest margin is primarily the result of reduced net interest income.
During the third quarter of 2017, the Company recorded a provision for loan loss of $35.0 million compared to $5.5 million in the third quarter of 2016. Of the $35.0 million provision for loan loss, $32.9 million is from the previously mentioned storm-related provision for loan losses.
The Company reported $21.5 million of non-interest income for the third quarter of 2017, compared to $22.0 million for the third quarter of 2016. The most important components of the third quarter non-interest income were $8.5 million from other service charges and fees, $6.4 million from service charges on deposits accounts, $3.2 million from mortgage lending income, $1.9 million from other income and $1.3 million loss on branches, equipment, and other assets, net.
Non-interest expense for the third quarter of 2017 was $70.8 million compared to $51.0 million for the third quarter of 2016. Non-interest expense excluding merger expenses and FDIC loss share buy-out expense for the third quarter of 2017 was $52.6 million compared to $47.2 million for the third quarter of 2016, an increase of $5.4 million. This increase excluding merger expenses and FDIC loss share buy-out expense is primarily the result of an increase in the costs associated with asset growth from the acquisitions in the first quarter of 2017 combined with approximately $1.1 million of growth in non-interest expense related to the Centennial Commercial Finance Group (“Centennial CFG”) and $556,000 of hurricane damage expense when compared to the third quarter of 2016. For the third quarter of 2017, our core efficiency ratio was 39.12% which has increased from the 36.51% reported for third quarter of 2016.
Financial Condition
Total loans receivable were $10.29 billion at September 30, 2017 compared to $7.39 billion at December 31, 2016. Total deposits were $10.45 billion at September 30, 2017 compared to $6.94 billion at December 31, 2016. Total assets were $14.26 billion at September 30, 2017 compared to $9.81 billion at December 31, 2016.
During the first nine months of 2017, the Company acquired $2.82 billion of loans, net of purchase accounting discounts. From December 31, 2016 to September 30, 2017, the Company produced approximately $73.8 million of organic loan growth. Centennial CFG produced $113.7 million of net organic loan growth during the first nine months of 2017 while the legacy footprint experienced significant net payoffs during the first nine months of 2017, resulting in a decline of $39.9 million.
During the third quarter of 2017, the Company acquired $2.37 billion of loans, net of purchase accounting discounts. From June 30, 2017 to September 30, 2017, the Company experienced organic growth in loans receivable of approximately $73.2 million. During the third quarter of 2017, Centennial CFG produced $73.4 million of organic loan growth, while the legacy footprint remained relatively unchanged. Centennial CFG had loans of $1.22 billion at September 30, 2017.
Non-performing loans at September 30, 2017 were $24.3 million, $39.6 million, $83,000 and zero in the Arkansas, Florida, Alabama and Centennial CFG markets, respectively, for a total of $64.0 million. Non-performing loans as a percent of total loans were 0.62% as of September 30, 2017 compared to 0.85% as of December 31, 2016. Non-performing assets at September 30, 2017 were $36.4 million, $48.6 million, $724,000 and zero in the Arkansas, Florida and Alabama and Centennial CFG markets, respectively, for a total of $85.7 million. Non-performing assets as a percent of total assets were 0.60% as of September 30, 2017 compared to 0.81% as of December 31, 2016.
The Company’s allowance for loan losses was $111.6 million at September 30, 2017, or 1.09% of total loans, compared to $80.0 million, or 1.08% of total loans, at December 31, 2016. This increase is primarily the result of the $32.9 million storm-related provision for loan loss recorded during the third quarter of 2017 offset by acquiring $2.82 billion of loans during 2017 which do not have an associated allowance for loan losses as a result of purchase accounting. As of September 30, 2017 and December 31, 2016, the Company’s allowance for loan losses was 174% and 127% of its total non-performing loans, respectively.
During the third quarter of 2017, the Company acquired $2.53 billion of deposits, net of purchase accounting discounts. From June 30, 2017 to September 30, 2017, the Company experienced organic growth in deposits of approximately $155.7 million.
Stockholders’ equity was $2.21 billion at September 30, 2017 compared to $1.33 billion at December 31, 2016, an increase of $879.2 million. The increase in stockholders’ equity is primarily associated with the $77.5 million and $742.3 million of common stock issued to the GHI and Stonegate shareholders, respectively, plus the $70.5 million increase in retained earnings combined with $3.5 million of comprehensive income offset by the repurchase of $19.5 million of our common stock during the first nine months of 2017. The annualized improvement in stockholders’ equity for the first nine months of 2017 excluding the $819.8 million of common stock issued to both the GHI and Stonegate shareholders was 6.0%. Book value per common share was $12.71 at September 30, 2017 compared to $9.45 at December 31, 2016 for an annualized increase of 46.1%. Tangible book value per common share was $7.06 at September 30, 2017 compared to $6.63 at December 31, 2016 for an annualized increase of 8.7%.
Due to the short time period between the completion of the Stonegate acquisition and September 30, 2017, the purchase price allocation and certain fair value measurements remain preliminary. The Company will continue to review the estimated fair values of loans, deposits, property and equipment, intangible assets, and other assets and liabilities, and to evaluate the assumed tax positions and contingencies.
Branches
During the fourth quarter of 2017, the Company has plans to close a branch location in Daphne, Alabama. The Company currently has 76 branches in Arkansas, 89 branches in Florida, 6 branches in Alabama and one branch in New York City. As a result of Hurricane Irma, our Naples, Florida branch location will remain closed until further notice.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, October 19, 2017. We encourage all participants to pre-register for the conference call using the following link: http://dpregister.com/10112266. 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: 10112266, which will be available until October 26, 2017 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 earnings excluding non-fundamental items, return on average assets excluding intangible amortization, return on average assets excluding non-fundamental items, return on average common equity excluding intangible amortization, core efficiency ratio, non-GAAP net interest margin, 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 non-fundamental items or non-recurring 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 core 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: the effects of future local, regional, national and international economic conditions, including inflation or a decrease in commercial real estate and residential housing values; changes in the level of nonperforming assets and charge-offs, and credit risk generally; the risks of changes in interest rates or the level and composition of deposits, loan demand and the values of loan collateral, securities and interest-sensitive assets and liabilities; the effect of any mergers, acquisitions or other transactions to which we or our bank subsidiary may from time to time be a party, including our ability to successfully integrate any businesses that we acquire; the risk that expected cost savings and other benefits from acquisitions may not be fully realized or may take longer to realize than expected; the possibility that an acquisition does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all; the reaction to a proposed acquisition transaction of the respective companies’ customers, employees and counterparties; diversion of management time on acquisition-related issues; the ability to enter into and/or close additional acquisitions; the availability of and access to capital on terms acceptable to us; increased regulatory requirements and supervision that will apply as a result of our exceeding $10 billion in total assets; legislation and regulation affecting the financial services industry as a whole, and the Company and its subsidiaries in particular, including the effects resulting from the reforms enacted by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the adoption of regulations by regulatory bodies under the Dodd-Frank Act; governmental monetary and fiscal policies, as well as legislative and regulatory changes, including as a result of initiatives of the newly elected administration of President Donald J. Trump; the effects of terrorism and efforts to combat it; political instability; the ability to keep pace with technological changes, including changes regarding cybersecurity; an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting our bank subsidiary or our customers; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market area and elsewhere, including institutions operating regionally, nationally and internationally, together with competitors offering banking products and services by mail, telephone and the Internet; the effect of changes in accounting policies and practices and auditing requirements, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters; higher defaults on our loan portfolio than we expect; and the failure of assumptions underlying the establishment of our allowance for loan losses or changes in our estimate of the adequacy of the allowance for loan losses. Additional information on factors that might affect Home BancShares, Inc.'s financial results is included in its Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2017.
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:
Jennifer C. Floyd
Chief Accounting Officer &
Investor Relations Officer
Home BancShares, Inc.
(501) 339-2929
| Home BancShares, Inc. | |||||||||||||||||||||
| Consolidated End of Period Balance Sheets | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | |||||||||||||||||
| (In thousands) | 2017 | 2017 | 2017 | 2016 | 2016 | ||||||||||||||||
| ASSETS | |||||||||||||||||||||
| Cash and due from banks | $ | 197,953 | $ | 147,041 | $ | 163,662 | $ | 123,758 | $ | 123,126 | |||||||||||
| Interest-bearing deposits with other banks | 354,367 | 313,447 | 253,427 | 92,891 | 173,034 | ||||||||||||||||
| Cash and cash equivalents | 552,320 | 460,488 | 417,089 | 216,649 | 296,160 | ||||||||||||||||
| Federal funds sold | 4,545 | - | 1,700 | 1,550 | 1,850 | ||||||||||||||||
| Investment securities - available-for-sale | 1,575,685 | 1,400,431 | 1,250,590 | 1,072,920 | 1,233,269 | ||||||||||||||||
| Investment securities - held-to-maturity | 234,945 | 254,161 | 276,599 | 284,176 | 275,544 | ||||||||||||||||
| Loans receivable | 10,286,193 | 7,834,475 | 7,849,645 | 7,387,699 | 7,112,291 | ||||||||||||||||
| Allowance for loan losses | (111,620 | ) | (80,138 | ) | (80,311 | ) | (80,002 | ) | (76,370 | ) | |||||||||||
| Loans receivable, net | 10,174,573 | 7,754,337 | 7,769,334 | 7,307,697 | 7,035,921 | ||||||||||||||||
| Bank premises and equipment, net | 239,990 | 207,071 | 212,813 | 205,301 | 208,137 | ||||||||||||||||
| Foreclosed assets held for sale | 21,701 | 18,789 | 17,315 | 15,951 | 17,053 | ||||||||||||||||
| Cash value of life insurance | 146,158 | 97,684 | 97,223 | 86,491 | 86,230 | ||||||||||||||||
| Accrued interest receivable | 41,071 | 32,445 | 32,413 | 30,838 | 29,398 | ||||||||||||||||
| Deferred tax asset, net | 121,787 | 68,368 | 67,063 | 61,298 | 56,435 | ||||||||||||||||
| Goodwill | 929,129 | 420,941 | 420,941 | 377,983 | 377,983 | ||||||||||||||||
| Core deposit and other intangibles | 50,982 | 21,019 | 21,885 | 18,311 | 19,073 | ||||||||||||||||
| Other assets | 163,081 | 136,494 | 132,503 | 129,300 | 127,185 | ||||||||||||||||
| Total assets | $ | 14,255,967 | $ | 10,872,228 | $ | 10,717,468 | $ | 9,808,465 | $ | 9,764,238 | |||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||
| Liabilities | |||||||||||||||||||||
| Deposits: | |||||||||||||||||||||
| Demand and non-interest-bearing | $ | 2,555,465 | $ | 1,957,677 | $ | 1,862,996 | $ | 1,695,184 | $ | 1,717,467 | |||||||||||
| Savings and interest-bearing transaction accounts | 6,341,883 | 4,335,456 | 4,274,194 | 3,963,241 | 3,792,229 | ||||||||||||||||
| Time deposits | 1,551,422 | 1,474,255 | 1,430,017 | 1,284,002 | 1,330,597 | ||||||||||||||||
| Total deposits | 10,448,770 | 7,767,388 | 7,567,207 | 6,942,427 | 6,840,293 | ||||||||||||||||
| Federal funds purchased | - | - | - | - | - | ||||||||||||||||
| Securities sold under agreements to repurchase | 149,531 | 133,741 | 123,793 | 121,290 | 109,350 | ||||||||||||||||
| FHLB and other borrowed funds | 1,044,333 | 1,099,478 | 1,455,040 | 1,305,198 | 1,420,369 | ||||||||||||||||
| Accrued interest payable and other liabilities | 38,782 | 37,751 | 69,125 | 51,234 | 37,382 | ||||||||||||||||
| Subordinated debentures | 367,835 | 357,838 | 60,735 | 60,826 | 60,826 | ||||||||||||||||
| Total liabilities | 12,049,251 | 9,396,196 | 9,275,900 | 8,480,975 | 8,468,220 | ||||||||||||||||
| Stockholders' equity | |||||||||||||||||||||
| Common stock | 1,737 | 1,431 | 1,434 | 1,405 | 1,405 | ||||||||||||||||
| Capital surplus | 1,674,642 | 940,821 | 948,982 | 869,737 | 866,310 | ||||||||||||||||
| Retained earnings | 526,448 | 527,338 | 490,142 | 455,948 | 419,999 | ||||||||||||||||
| Accumulated other comprehensive income | 3,889 | 6,442 | 1,010 | 400 | 8,304 | ||||||||||||||||
| Total stockholders' equity | 2,206,716 | 1,476,032 | 1,441,568 | 1,327,490 | 1,296,018 | ||||||||||||||||
| Total liabilities and stockholders' equity | $ | 14,255,967 | $ | 10,872,228 | $ | 10,717,468 | $ | 9,808,465 | $ | 9,764,238 | |||||||||||
| 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) | 2017 | 2017 | 2017 | 2016 | 2016 | 2017 | 2016 | ||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||||||||
| Loans | $ | 113,269 | $ | 112,732 | $ | 105,762 | $ | 103,113 | $ | 102,953 | $ | 331,763 | $ | 300,281 | |||||||||||||||
| Investment securities | |||||||||||||||||||||||||||||
| Taxable | 7,071 | 6,434 | 5,478 | 5,068 | 5,583 | 18,983 | 16,178 | ||||||||||||||||||||||
| Tax-exempt | 3,032 | 2,966 | 2,944 | 3,059 | 2,720 | 8,942 | 8,358 | ||||||||||||||||||||||
| Deposits - other banks | 538 | 727 | 308 | 146 | 117 | 1,573 | 325 | ||||||||||||||||||||||
| Federal funds sold | 3 | 4 | 2 | 2 | 2 | 9 | 7 | ||||||||||||||||||||||
| Total interest income | 123,913 | 122,863 | 114,494 | 111,388 | 111,375 | 361,270 | 325,149 | ||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||
| Interest on deposits | 8,535 | 6,810 | 5,486 | 4,398 | 4,040 | 20,831 | 11,528 | ||||||||||||||||||||||
| Federal funds purchased | - | - | - | - | - | - | 2 | ||||||||||||||||||||||
| FHLB borrowed funds | 3,408 | 3,710 | 3,589 | 3,201 | 3,139 | 10,707 | 9,283 | ||||||||||||||||||||||
| Securities sold under agreements to repurchase | 232 | 196 | 165 | 153 | 142 | 593 | 421 | ||||||||||||||||||||||
| Subordinated debentures | 4,969 | 4,795 | 439 | 429 | 401 | 10,203 | 1,164 | ||||||||||||||||||||||
| Total interest expense | 17,144 | 15,511 | 9,679 | 8,181 | 7,722 | 42,334 | 22,398 | ||||||||||||||||||||||
| Net interest income | 106,769 | 107,352 | 104,815 | 103,207 | 103,653 | 318,936 | 302,751 | ||||||||||||||||||||||
| Provision for loan losses | 35,023 | 387 | 3,914 | 1,703 | 5,536 | 39,324 | 16,905 | ||||||||||||||||||||||
| Net interest income after | |||||||||||||||||||||||||||||
| provision for loan losses | 71,746 | 106,965 | 100,901 | 101,504 | 98,117 | 279,612 | 285,846 | ||||||||||||||||||||||
| Non-interest income | |||||||||||||||||||||||||||||
| Service charges on deposit accounts | 6,408 | 5,966 | 5,982 | 6,442 | 6,527 | 18,356 | 18,607 | ||||||||||||||||||||||
| Other service charges and fees | 8,490 | 8,576 | 8,917 | 7,611 | 7,504 | 25,983 | 22,589 | ||||||||||||||||||||||
| Trust fees | 365 | 309 | 456 | 329 | 365 | 1,130 | 1,128 | ||||||||||||||||||||||
| Mortgage lending income | 3,172 | 3,750 | 2,791 | 4,123 | 3,932 | 9,713 | 10,276 | ||||||||||||||||||||||
| Insurance commissions | 472 | 465 | 545 | 488 | 534 | 1,482 | 1,808 | ||||||||||||||||||||||
| Increase in cash value of life insurance | 478 | 463 | 310 | 320 | 344 | 1,251 | 1,092 | ||||||||||||||||||||||
| Dividends from FHLB, FRB, Bankers' Bank & other | 834 | 472 | 1,149 | 944 | 808 | 2,455 | 2,147 | ||||||||||||||||||||||
| Gain on acquisitions | - | - | 3,807 | - | - | 3,807 | - | ||||||||||||||||||||||
| Gain (loss) on SBA loans | 163 | 387 | 188 | 645 | 364 | 738 | 443 | ||||||||||||||||||||||
| Gain (loss) on branches, equipment and other assets, net | (1,337 | ) | 431 | (56 | ) | (1 | ) | (86 | ) | (962 | ) | 701 | |||||||||||||||||
| Gain (loss) on OREO, net | 335 | 393 | 121 | 159 | 132 | 849 | (713 | ) | |||||||||||||||||||||
| Gain (loss) on securities, net | 136 | 380 | 423 | 644 | - | 939 | 25 | ||||||||||||||||||||||
| FDIC indemnification accretion/(amortization), net | - | - | - | - | - | - | (772 | ) | |||||||||||||||||||||
| Other income | 1,941 | 2,825 | 1,837 | 2,124 | 1,590 | 6,603 | 5,892 | ||||||||||||||||||||||
| Total non-interest income | 21,457 | 24,417 | 26,470 | 23,828 | 22,014 | 72,344 | 63,223 | ||||||||||||||||||||||
| Non-interest expense | |||||||||||||||||||||||||||||
| Salaries and employee benefits | 28,510 | 28,034 | 27,421 | 26,944 | 25,623 | 83,965 | 75,018 | ||||||||||||||||||||||
| Occupancy and equipment | 7,887 | 7,034 | 6,681 | 6,281 | 6,668 | 21,602 | 19,848 | ||||||||||||||||||||||
| Data processing expense | 2,853 | 2,863 | 2,723 | 2,278 | 2,791 | 8,439 | 8,221 | ||||||||||||||||||||||
| Other operating expenses | 31,596 | 13,072 | 18,316 | 11,991 | 15,944 | 62,984 | 41,174 | ||||||||||||||||||||||
| Total non-interest expense | 70,846 | 51,003 | 55,141 | 47,494 | 51,026 | 176,990 | 144,261 | ||||||||||||||||||||||
| Income before income taxes | 22,357 | 80,379 | 72,230 | 77,838 | 69,105 | 174,966 | 204,808 | ||||||||||||||||||||||
| Income tax expense | 7,536 | 30,282 | 25,374 | 29,248 | 25,485 | 63,192 | 76,252 | ||||||||||||||||||||||
| Net income | $ | 14,821 | $ | 50,097 | $ | 46,856 | $ | 48,590 | $ | 43,620 | $ | 111,774 | $ | 128,556 | |||||||||||||||
| 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) | 2017 | 2017 | 2017 | 2016 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||||||||||||
| Diluted earnings per common share | $ | 0.10 | $ | 0.35 | $ | 0.33 | $ | 0.35 | $ | 0.31 | $ | 0.78 | $ | 0.91 | ||||||||||||||||
| Diluted earnings per common share excluding gain on acquisitions, merger expenses, reduced provision for loan losses as a result of a significant loan recovery & FDIC loss share buy-out expense (non-GAAP)(1) | 0.32 | 0.35 | 0.33 | 0.33 | 0.33 | 1.00 | 0.93 | |||||||||||||||||||||||
| Basic earnings per common share | 0.10 | 0.35 | 0.33 | 0.35 | 0.31 | 0.78 | 0.92 | |||||||||||||||||||||||
| Dividends per share - common | 0.1100 | 0.0900 | 0.0900 | 0.0900 | 0.0900 | 0.2900 | 0.2525 | |||||||||||||||||||||||
| Book value per common share | 12.71 | 10.32 | 10.05 | 9.45 | 9.22 | 12.71 | 9.22 | |||||||||||||||||||||||
| Tangible book value per common share (non-GAAP)(1) | 7.06 | 7.23 | 6.96 | 6.63 | 6.40 | 7.06 | 6.40 | |||||||||||||||||||||||
| STOCK INFORMATION | ||||||||||||||||||||||||||||||
| Average common shares outstanding | 144,238 | 143,282 | 141,785 | 140,465 | 140,436 | 143,111 | 140,403 | |||||||||||||||||||||||
| Average diluted shares outstanding | 144,987 | 144,116 | 142,492 | 140,781 | 140,703 | 143,839 | 140,685 | |||||||||||||||||||||||
| End of period common shares outstanding | 173,666 | 143,071 | 143,442 | 140,472 | 140,490 | 173,666 | 140,490 | |||||||||||||||||||||||
| ANNUALIZED PERFORMANCE METRICS | ||||||||||||||||||||||||||||||
| Return on average assets | 0.54 | % | 1.86 | % | 1.86 | % | 1.98 | % | 1.81 | % | 1.41 | % | 1.81 | % | ||||||||||||||||
| Return on average assets excluding merger expenses, gain on acquisitions, reduced provision for loan losses as a result of a significant loan recovery, loss on FDIC loss share buyout and hurricane expenses (non-GAAP)(1) | 1.70 | % | 1.88 | % | 1.88 | % | 1.88 | % | 1.90 | % | 1.82 | % | 1.84 | % | ||||||||||||||||
| Return on average assets excluding intangible amortization (non-GAAP)(1) | 0.59 | % | 1.96 | % | 1.96 | % | 2.08 | % | 1.91 | % | 1.49 | % | 1.91 | % | ||||||||||||||||
| Return on average assets excluding intangible amortization, provision for loan losses, merger expenses, gain on acquisitions, reduced provision for loan losses as a result of a significant loan recovery, loss on FDIC loss share buyout and income taxes (Core ROA) (non-GAAP)(1) | 2.94 | % | 3.19 | % | 3.31 | % | 3.23 | % | 3.43 | % | 3.14 | % | 3.35 | % | ||||||||||||||||
| Return on average common equity | 3.88 | % | 13.83 | % | 13.85 | % | 14.79 | % | 13.62 | % | 10.33 | % | 13.83 | % | ||||||||||||||||
| Return on average tangible common equity excluding intangible amortization (non-GAAP)(1) | 5.80 | % | 20.09 | % | 20.08 | % | 21.45 | % | 20.01 | % | 15.06 | % | 20.59 | % | ||||||||||||||||
| Efficiency ratio | 53.77 | % | 37.48 | % | 40.76 | % | 36.19 | % | 39.41 | % | 43.92 | % | 38.16 | % | ||||||||||||||||
| Core efficiency ratio (non-GAAP)(1) | 39.12 | % | 37.29 | % | 36.96 | % | 35.97 | % | 36.51 | % | 37.79 | % | 36.75 | % | ||||||||||||||||
| Net interest margin - FTE | 4.40 | % | 4.50 | % | 4.70 | % | 4.75 | % | 4.86 | % | 4.53 | % | 4.83 | % | ||||||||||||||||
| Fully taxable equivalent adjustment | $ | 1,846 | $ | 2,016 | $ | 2,011 | $ | 2,108 | $ | 1,869 | $ | 5,873 | $ | 5,816 | ||||||||||||||||
| Total revenue | 145,370 | 147,280 | 140,964 | 135,216 | 133,389 | 433,614 | 388,372 | |||||||||||||||||||||||
| OTHER OPERATING EXPENSES | ||||||||||||||||||||||||||||||
| Advertising | $ | 795 | $ | 812 | $ | 698 | $ | 910 | $ | 866 | $ | 2,305 | $ | 2,422 | ||||||||||||||||
| Merger and acquisition expenses | 18,227 | 789 | 6,727 | 433 | - | 25,743 | - | |||||||||||||||||||||||
| FDIC loss share buy-out expense | - | - | - | - | 3,849 | - | 3,849 | |||||||||||||||||||||||
| Amortization of intangibles | 906 | 866 | 804 | 762 | 762 | 2,576 | 2,370 | |||||||||||||||||||||||
| Electronic banking expense | 1,712 | 1,654 | 1,519 | 1,621 | 1,428 | 4,885 | 4,121 | |||||||||||||||||||||||
| Directors' fees | 309 | 324 | 313 | 294 | 292 | 946 | 856 | |||||||||||||||||||||||
| Due from bank service charges | 472 | 456 | 420 | 393 | 319 | 1,348 | 961 | |||||||||||||||||||||||
| FDIC and state assessment | 1,293 | 1,182 | 1,288 | 1,097 | 1,502 | 3,763 | 4,394 | |||||||||||||||||||||||
| Insurance | 577 | 543 | 578 | 563 | 553 | 1,698 | 1,630 | |||||||||||||||||||||||
| Legal and accounting | 698 | 474 | 627 | 442 | 583 | 1,799 | 1,764 | |||||||||||||||||||||||
| Other professional fees | 1,436 | 1,233 | 1,153 | 943 | 1,137 | 3,822 | 3,106 | |||||||||||||||||||||||
| Operating supplies | 432 | 477 | 467 | 466 | 437 | 1,376 | 1,292 | |||||||||||||||||||||||
| Postage | 280 | 295 | 286 | 269 | 269 | 861 | 815 | |||||||||||||||||||||||
| Telephone | 305 | 398 | 324 | 360 | 449 | 1,027 | 1,391 | |||||||||||||||||||||||
| Other expense | 4,154 | 3,569 | 3,112 | 3,438 | 3,498 | 10,835 | 12,203 | |||||||||||||||||||||||
| Total other operating expenses | $ | 31,596 | $ | 13,072 | $ | 18,316 | $ | 11,991 | $ | 15,944 | $ | 62,984 | $ | 41,174 | ||||||||||||||||
| (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) | ||||||||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||||||||
| (Dollars in thousands) | 2017 | 2017 | 2017 | 2016 | 2016 | |||||||||||||||||
| BALANCE SHEET RATIOS | ||||||||||||||||||||||
| Total loans to total deposits | 98.44 | % | 100.86 | % | 103.73 | % | 106.41 | % | 103.98 | % | ||||||||||||
| Common equity to assets | 15.48 | % | 13.58 | % | 13.45 | % | 13.53 | % | 13.27 | % | ||||||||||||
| Tangible common equity to tangible assets (non-GAAP)(1) | 9.24 | % | 9.91 | % | 9.72 | % | 9.89 | % | 9.60 | % | ||||||||||||
| LOANS RECEIVABLE | ||||||||||||||||||||||
| Real estate | ||||||||||||||||||||||
| Commercial real estate loans | ||||||||||||||||||||||
| Non-farm/non-residential | $ | 4,532,402 | $ | 3,368,663 | $ | 3,462,773 | $ | 3,153,121 | $ | 2,954,618 | ||||||||||||
| Construction/land development | 1,648,923 | 1,315,309 | 1,217,519 | 1,135,843 | 1,065,204 | |||||||||||||||||
| Agricultural | 88,295 | 78,260 | 79,940 | 77,736 | 77,556 | |||||||||||||||||
| Residential real estate loans | ||||||||||||||||||||||
| Residential 1-4 family | 1,968,688 | 1,513,888 | 1,493,133 | 1,356,136 | 1,264,384 | |||||||||||||||||
| Multifamily residential | 497,910 | 398,781 | 404,815 | 340,926 | 328,089 | |||||||||||||||||
| Total real estate | 8,736,218 | 6,674,901 | 6,658,180 | 6,063,762 | 5,689,851 | |||||||||||||||||
| Consumer | 51,515 | 38,424 | 41,893 | 41,745 | 42,487 | |||||||||||||||||
| Commercial and industrial | 1,296,485 | 994,827 | 1,013,403 | 1,123,213 | 1,225,043 | |||||||||||||||||
| Agricultural | 57,489 | 69,697 | 69,307 | 74,673 | 73,413 | |||||||||||||||||
| Other | 144,486 | 56,626 | 66,862 | 84,306 | 81,497 | |||||||||||||||||
| Loans receivable | $ | 10,286,193 | $ | 7,834,475 | $ | 7,849,645 | $ | 7,387,699 | $ | 7,112,291 | ||||||||||||
| Discount for credit losses on purchased loans | $ | 158,001 | $ | 95,627 | $ | 104,464 | $ | 100,148 | $ | 108,017 | ||||||||||||
| Purchased loans, net of discount for credit losses on purchased loans | 3,653,079 | 1,355,922 | 1,375,210 | 1,125,599 | 1,368,305 | |||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||
| Balance, beginning of period | $ | 80,138 | $ | 80,311 | $ | 80,002 | $ | 76,370 | $ | 74,341 | ||||||||||||
| Loans charged off | 4,424 | 1,405 | 4,706 | 4,836 | 4,351 | |||||||||||||||||
| Recoveries of loans previously charged off | 883 | 845 | 1,101 | 6,765 | 844 | |||||||||||||||||
| Net loans (recovered)/charged off | 3,541 | 560 | 3,605 | (1,929 | ) | 3,507 | ||||||||||||||||
| Provision for loan losses | 35,023 | 387 | 3,914 | 1,703 | 5,536 | |||||||||||||||||
| Balance, end of period | $ | 111,620 | $ | 80,138 | $ | 80,311 | $ | 80,002 | $ | 76,370 | ||||||||||||
| Net (recoveries) charge-offs to average total loans | 0.18 | % | 0.03 | % | 0.19 | % | -0.11 | % | 0.20 | % | ||||||||||||
| Allowance for loan losses to total loans | 1.09 | % | 1.02 | % | 1.02 | % | 1.08 | % | 1.07 | % | ||||||||||||
| NON-PERFORMING ASSETS | ||||||||||||||||||||||
| Non-performing loans | ||||||||||||||||||||||
| Non-accrual loans | $ | 34,794 | $ | 32,426 | $ | 43,810 | $ | 47,182 | $ | 39,353 | ||||||||||||
| Loans past due 90 days or more | 29,183 | 14,442 | 15,388 | 15,942 | 20,737 | |||||||||||||||||
| Total non-performing loans | 63,977 | 46,868 | 59,198 | 63,124 | 60,090 | |||||||||||||||||
| Other non-performing assets | ||||||||||||||||||||||
| Foreclosed assets held for sale, net | 21,701 | 18,789 | 17,315 | 15,951 | 17,053 | |||||||||||||||||
| Other non-performing assets | 3 | 3 | 3 | 3 | - | |||||||||||||||||
| Total other non-performing assets | 21,704 | 18,792 | 17,318 | 15,954 | 17,053 | |||||||||||||||||
| Total non-performing assets | $ | 85,681 | $ | 65,660 | $ | 76,516 | $ | 79,078 | $ | 77,143 | ||||||||||||
| Allowance for loan losses for loans to non-performing loans | 174.47 | % | 170.99 | % | 135.67 | % | 126.74 | % | 127.09 | % | ||||||||||||
| Non-performing loans to total loans | 0.62 | % | 0.60 | % | 0.75 | % | 0.85 | % | 0.84 | % | ||||||||||||
| Non-performing assets to total assets | 0.60 | % | 0.60 | % | 0.71 | % | 0.81 | % | 0.79 | % | ||||||||||||
| (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, 2017 | 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 | $ | 180,368 | $ | 538 | 1.18 | % | $ | 303,997 | $ | 727 | 0.96 | % | ||||||||||||
| Federal funds sold | 878 | 3 | 1.36 | % | 1,427 | 4 | 1.12 | % | ||||||||||||||||
| Investment securities - taxable | 1,326,117 | 7,071 | 2.12 | % | 1,256,202 | 6,434 | 2.05 | % | ||||||||||||||||
| Investment securities - non-taxable - FTE | 348,920 | 4,908 | 5.58 | % | 346,708 | 4,812 | 5.57 | % | ||||||||||||||||
| Loans receivable - FTE | 7,938,716 | 113,239 | 5.66 | % | 7,829,615 | 112,902 | 5.78 | % | ||||||||||||||||
| Total interest-earning assets | 9,794,999 | 125,759 | 5.09 | % | 9,737,949 | 124,879 | 5.14 | % | ||||||||||||||||
| Non-earning assets | 1,058,560 | 1,055,821 | ||||||||||||||||||||||
| Total assets | $ | 10,853,559 | $ | 10,793,770 | ||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 4,512,785 | $ | 5,755 | 0.51 | % | $ | 4,292,389 | $ | 4,313 | 0.40 | % | ||||||||||||
| Time deposits | 1,444,662 | 2,780 | 0.76 | % | 1,443,228 | 2,497 | 0.69 | % | ||||||||||||||||
| Total interest-bearing deposits | 5,957,447 | 8,535 | 0.57 | % | 5,735,617 | 6,810 | 0.48 | % | ||||||||||||||||
| Federal funds purchased | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||||
| Securities sold under agreement to repurchase | 135,855 | 232 | 0.68 | % | 128,661 | 196 | 0.61 | % | ||||||||||||||||
| FHLB borrowed funds | 920,754 | 3,408 | 1.47 | % | 1,177,510 | 3,710 | 1.26 | % | ||||||||||||||||
| Subordinated debentures | 358,347 | 4,969 | 5.50 | % | 351,659 | 4,795 | 5.47 | % | ||||||||||||||||
| Total interest-bearing liabilities | 7,372,403 | 17,144 | 0.92 | % | 7,393,447 | 15,511 | 0.84 | % | ||||||||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||||||||
| Non-interest bearing deposits | 1,924,933 | 1,899,865 | ||||||||||||||||||||||
| Other liabilities | 42,394 | 47,359 | ||||||||||||||||||||||
| Total liabilities | 9,339,730 | 9,340,671 | ||||||||||||||||||||||
| Shareholders' equity | 1,513,829 | 1,453,099 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 10,853,559 | $ | 10,793,770 | ||||||||||||||||||||
| Net interest spread | 4.17 | % | 4.30 | % | ||||||||||||||||||||
| Net interest income and margin - FTE | $ | 108,615 | 4.40 | % | $ | 109,368 | 4.50 | % | ||||||||||||||||
| Home BancShares, Inc. | |||||||||||||||||||||||||
| Consolidated Net Interest Margin | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Nine Months Ended | |||||||||||||||||||||||||
| September 30, 2017 | September 30, 2016 | ||||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Earning assets | |||||||||||||||||||||||||
| Interest-bearing balances due from banks | $ | 218,324 | $ | 1,573 | 0.96 | % | $ | 110,893 | $ | 325 | 0.39 | % | |||||||||||||
| Federal funds sold | 1,161 | 9 | 1.04 | % | 1,895 | 7 | 0.49 | % | |||||||||||||||||
| Investment securities - taxable | 1,231,619 | 18,983 | 2.06 | % | 1,174,998 | 16,178 | 1.84 | % | |||||||||||||||||
| Investment securities - non-taxable - FTE | 347,578 | 14,506 | 5.58 | % | 333,336 | 13,616 | 5.46 | % | |||||||||||||||||
| Loans receivable - FTE | 7,785,925 | 332,072 | 5.70 | % | 6,909,240 | 300,839 | 5.82 | % | |||||||||||||||||
| Total interest-earning assets | 9,584,607 | 367,143 | 5.12 | % | 8,530,362 | 330,965 | 5.18 | % | |||||||||||||||||
| Non-earning assets | 1,033,310 | 968,553 | |||||||||||||||||||||||
| Total assets | $ | 10,617,917 | $ | 9,498,915 | |||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 4,316,032 | $ | 13,445 | 0.42 | % | $ | 3,664,401 | $ | 6,426 | 0.23 | % | |||||||||||||
| Time deposits | 1,415,383 | 7,386 | 0.70 | % | 1,382,657 | 5,102 | 0.49 | % | |||||||||||||||||
| Total interest-bearing deposits | 5,731,415 | 20,831 | 0.49 | % | 5,047,058 | 11,528 | 0.31 | % | |||||||||||||||||
| Federal funds purchased | - | - | 0.00 | % | 312 | 2 | 0.86 | % | |||||||||||||||||
| Securities sold under agreement to repurchase | 129,580 | 593 | 0.61 | % | 120,966 | 421 | 0.46 | % | |||||||||||||||||
| FHLB borrowed funds | 1,155,503 | 10,707 | 1.24 | % | 1,376,145 | 9,283 | 0.90 | % | |||||||||||||||||
| Subordinated debentures | 258,032 | 10,203 | 5.29 | % | 60,826 | 1,164 | 2.56 | % | |||||||||||||||||
| Total interest-bearing liabilities | 7,274,530 | 42,334 | 0.78 | % | 6,605,307 | 22,398 | 0.45 | % | |||||||||||||||||
| Non-interest bearing liabilities | |||||||||||||||||||||||||
| Non-interest bearing deposits | 1,847,843 | 1,596,603 | |||||||||||||||||||||||
| Other liabilities | 48,804 | 55,411 | |||||||||||||||||||||||
| Total liabilities | 9,171,177 | 8,257,321 | |||||||||||||||||||||||
| Shareholders' equity | 1,446,740 | 1,241,594 | |||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 10,617,917 | $ | 9,498,915 | |||||||||||||||||||||
| Net interest spread | 4.34 | % | 4.73 | % | |||||||||||||||||||||
| Net interest income and margin - FTE | $ | 324,809 | 4.53 | % | $ | 308,567 | 4.83 | % | |||||||||||||||||
| 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) | 2017 | 2017 | 2017 | 2016 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
| EARNINGS EXCLUDING NON-FUNDAMENTAL ITEMS | ||||||||||||||||||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 14,821 | $ | 50,097 | $ | 46,856 | $ | 48,590 | $ | 43,620 | $ | 111,774 | $ | 128,556 | ||||||||||||||||
| Non-fundamental items | ||||||||||||||||||||||||||||||
| Gain on acquisitions | - | - | (3,807 | ) | - | - | (3,807 | ) | - | |||||||||||||||||||||
| Merger and acquisition expenses | 18,227 | 789 | 6,727 | 433 | - | 25,743 | - | |||||||||||||||||||||||
| FDIC loss share buy-out expense | - | - | - | - | 3,849 | - | 3,849 | |||||||||||||||||||||||
| Reduced provision for loan losses as a result of a significant loan recovery | - | - | (4,457 | ) | - | - | - | |||||||||||||||||||||||
| Hurricane expenses(2) | 33,445 | - | - | - | - | 33,445 | - | |||||||||||||||||||||||
| Total non-fundamental items | 51,672 | 789 | 2,920 | (4,024 | ) | 3,849 | 55,381 | 3,849 | ||||||||||||||||||||||
| Tax-effect of non-fundamental items(3) | 20,045 | 199 | 2,382 | (1,578 | ) | 1,510 | 22,626 | 1,510 | ||||||||||||||||||||||
| Non-fundamental items after-tax (B) | 31,627 | 590 | 538 | (2,446 | ) | 2,339 | 32,755 | 2,339 | ||||||||||||||||||||||
| Earnings excluding non-fundamental items (C) | $ | 46,448 | $ | 50,687 | $ | 47,394 | $ | 46,144 | $ | 45,959 | $ | 144,529 | $ | 130,895 | ||||||||||||||||
| Average diluted shares outstanding (D) | 144,987 | 144,116 | 142,492 | 140,781 | 140,703 | 143,839 | 140,685 | |||||||||||||||||||||||
| GAAP diluted earnings per share: A/D | $ | 0.10 | $ | 0.35 | $ | 0.33 | $ | 0.35 | $ | 0.31 | $ | 0.78 | $ | 0.91 | ||||||||||||||||
| Non-fundamental items after-tax: B/D | 0.22 | - | - | (0.02 | ) | 0.02 | 0.22 | 0.02 | ||||||||||||||||||||||
| Diluted earnings per common share excluding gain on acquisitions, merger expenses, reduced provision for loan losses as a result of a significant loan recovery, FDIC loss share buy-out expense & hurricane expenses: C/D | $ | 0.32 | $ | 0.35 | $ | 0.33 | $ | 0.33 | $ | 0.33 | $ | 1.00 | $ | 0.93 | ||||||||||||||||
| ANNUALIZED RETURN ON AVERAGE ASSETS | ||||||||||||||||||||||||||||||
| Return on average assets: A/H | 0.54 | % | 1.86 | % | 1.86 | % | 1.98 | % | 1.81 | % | 1.41 | % | 1.81 | % | ||||||||||||||||
| Return on average assets excluding merger expenses, gain on acquisitions, reduced provision for loan losses as a result of a significant loan recovery, loss on FDIC loss share buyout and hurricane expenses: (A+F)/H | 1.70 | % | 1.88 | % | 1.88 | % | 1.88 | % | 1.90 | % | 1.82 | % | 1.84 | % | ||||||||||||||||
| Return on average assets excluding intangible amortization: (A+C)/(H-I) | 0.59 | % | 1.96 | % | 1.96 | % | 2.08 | % | 1.91 | % | 1.49 | % | 1.91 | % | ||||||||||||||||
| Return on average assets excluding intangible amortization, provision for loan losses, merger expenses, gain on acquisitions, reduced provision for loan losses as a result of a significant loan recovery, loss on FDIC loss share buyout, hurricane expenses and income taxes (Core ROA): (A+B+D+E+G)/(H-I) | 2.94 | % | 3.19 | % | 3.31 | % | 3.23 | % | 3.43 | % | 3.14 | % | 3.35 | % | ||||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 14,821 | $ | 50,097 | $ | 46,856 | $ | 48,590 | $ | 43,620 | $ | 111,774 | $ | 128,556 | ||||||||||||||||
| Amortization of intangibles (B) | 906 | 866 | 804 | 762 | 762 | 2,576 | 2,370 | |||||||||||||||||||||||
| Amortization of intangibles after-tax (C) | 551 | 526 | 489 | 463 | 463 | 1,566 | 1,440 | |||||||||||||||||||||||
| Provision for loan losses excluding hurricane provision (D) | 2,134 | 387 | 3,914 | 1,703 | 5,536 | 6,435 | 16,905 | |||||||||||||||||||||||
| Total non-fundamental items (E) | 51,672 | 789 | 2,920 | (4,024 | ) | 3,849 | 55,381 | 3,849 | ||||||||||||||||||||||
| Non-fundamental items after-tax (F) | 31,627 | 590 | 538 | (2,446 | ) | 2,339 | 32,755 | 2,339 | ||||||||||||||||||||||
| Income tax expense (G) | 7,536 | 30,282 | 25,374 | 29,248 | 25,485 | 63,192 | 76,252 | |||||||||||||||||||||||
| Average assets (H) | 10,853,559 | 10,793,770 | 10,198,844 | 9,777,148 | 9,602,363 | 10,617,917 | 9,498,915 | |||||||||||||||||||||||
| Average goodwill, core deposits & other intangible assets (I) | 462,799 | 442,380 | 415,699 | 396,662 | 397,429 | 440,465 | 398,195 | |||||||||||||||||||||||
| ANNUALIZED RETURN ON AVERAGE COMMON EQUITY | ||||||||||||||||||||||||||||||
| Return on average common equity: A/C | 3.88 | % | 13.83 | % | 13.85 | % | 14.79 | % | 13.62 | % | 10.33 | % | 13.83 | % | ||||||||||||||||
| Return on average tangible common equity excluding intangible amortization: (A+B)/(C-D) | 5.80 | % | 20.09 | % | 20.08 | % | 21.45 | % | 20.01 | % | 15.06 | % | 20.59 | % | ||||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 14,821 | $ | 50,097 | $ | 46,856 | $ | 48,590 | $ | 43,620 | $ | 111,774 | $ | 128,556 | ||||||||||||||||
| Amortization of intangibles after-tax (B) | 551 | 526 | 489 | 463 | 463 | 1,566 | 1,440 | |||||||||||||||||||||||
| Average common equity (C) | 1,513,829 | 1,453,099 | 1,371,730 | 1,306,571 | 1,274,077 | 1,446,740 | 1,241,594 | |||||||||||||||||||||||
| Average goodwill, core deposits & other intangible assets (D) | 462,799 | 442,380 | 415,699 | 396,662 | 397,429 | 440,465 | 398,195 | |||||||||||||||||||||||
| (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 | 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) | 2017 | 2017 | 2017 | 2016 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||
| EFFICIENCY RATIO | |||||||||||||||||||||||||||||||
| Efficiency ratio: ((C-E)/(A+B+D)) | 53.77 | % | 37.48 | % | 40.76 | % | 36.19 | % | 39.41 | % | 43.92 | % | 38.16 | % | |||||||||||||||||
| Core efficiency ratio: ((C-E-G)/(A+B+D-F)) | 39.12 | % | 37.29 | % | 36.96 | % | 35.97 | % | 36.51 | % | 37.79 | % | 36.75 | % | |||||||||||||||||
| Net interest income (A) | $ | 106,769 | $ | 107,352 | $ | 104,815 | $ | 103,207 | $ | 103,653 | $ | 318,936 | $ | 302,751 | |||||||||||||||||
| Non-interest income (B) | 21,457 | 24,417 | 26,470 | 23,828 | 22,014 | 72,344 | 63,223 | ||||||||||||||||||||||||
| Non-interest expense (C) | 70,846 | 51,003 | 55,141 | 47,494 | 51,026 | 176,990 | 144,261 | ||||||||||||||||||||||||
| Fully taxable equivalent adjustment (D) | 1,846 | 2,016 | 2,011 | 2,108 | 1,869 | 5,873 | 5,816 | ||||||||||||||||||||||||
| Amortization of intangibles (E) | 906 | 866 | 804 | 762 | 762 | 2,576 | 2,370 | ||||||||||||||||||||||||
| Non-fundamental items: | |||||||||||||||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||||||||||||
| Gain on acquisition | $ | - | $ | - | $ | 3,807 | $ | - | $ | - | $ | 3,807 | $ | - | |||||||||||||||||
| Gain (loss) on OREO | 335 | 393 | 121 | 159 | 132 | 849 | (713 | ) | |||||||||||||||||||||||
| Gain (loss) on SBA loans | 163 | 387 | 188 | 645 | 364 | 738 | 443 | ||||||||||||||||||||||||
| Gain (loss) on branches, equipment and other assets, net | (1,337 | ) | 431 | (56 | ) | (1 | ) | (86 | ) | (962 | ) | 701 | |||||||||||||||||||
| Gain (loss) on securities | 136 | 380 | 423 | 644 | - | 939 | 25 | ||||||||||||||||||||||||
| Recoveries on historic losses | - | - | - | - | - | - | 925 | ||||||||||||||||||||||||
| Total non-fundamental non-interest income (F) | $ | (703 | ) | $ | 1,591 | $ | 4,483 | $ | 1,447 | $ | 410 | $ | 5,371 | $ | 1,381 | ||||||||||||||||
| Non-interest expense: | |||||||||||||||||||||||||||||||
| Merger Expenses | $ | 18,227 | $ | 789 | $ | 6,727 | $ | 433 | $ | - | $ | 25,743 | $ | - | |||||||||||||||||
| FDIC loss share buy-out | - | - | - | - | 3,849 | - | 3,849 | ||||||||||||||||||||||||
| Hurricane damage expense | 556 | - | - | - | - | 556 | - | ||||||||||||||||||||||||
| Vacant properties write-downs | - | 47 | - | 369 | - | 47 | 1,914 | ||||||||||||||||||||||||
| Total non-fundamental non-interest expense (G) | $ | 18,783 | $ | 836 | $ | 6,727 | $ | 802 | $ | 3,849 | $ | 26,346 | $ | 5,763 | |||||||||||||||||
| ANNUALIZED NET INTEREST MARGIN | |||||||||||||||||||||||||||||||
| Net interest margin: A/C | 4.40 | % | 4.50 | % | 4.70 | % | 4.75 | % | 4.86 | % | 4.53 | % | 4.83 | % | |||||||||||||||||
| Net interest margin (non-GAAP): B/D | 4.07 | % | 4.11 | % | 4.32 | % | 4.31 | % | 4.25 | % | 4.16 | % | 4.24 | % | |||||||||||||||||
| Net interest income - FTE (A) | $ | 108,615 | $ | 109,368 | $ | 106,826 | $ | 105,315 | $ | 105,522 | $ | 324,809 | $ | 308,567 | |||||||||||||||||
| Total purchase accounting accretion | 7,174 | 8,497 | 7,652 | 8,659 | 11,937 | 23,319 | 33,684 | ||||||||||||||||||||||||
| Net interest income - FTE (non-GAAP) (B) | $ | 101,441 | $ | 100,871 | $ | 99,174 | $ | 96,656 | $ | 93,585 | $ | 301,490 | $ | 274,883 | |||||||||||||||||
| Average interest-earning assets (C) | $ | 9,794,999 | $ | 9,737,949 | $ | 9,214,498 | $ | 8,824,468 | $ | 8,646,026 | $ | 9,584,607 | $ | 8,530,362 | |||||||||||||||||
| Average purchase accounting loan discounts | 97,978 | 104,384 | 102,906 | 104,783 | 115,766 | 97,158 | 131,506 | ||||||||||||||||||||||||
| Average interest-earning assets (non-GAAP) (D) | $ | 9,892,977 | $ | 9,842,333 | $ | 9,317,404 | $ | 8,929,251 | $ | 8,761,792 | $ | 9,681,765 | $ | 8,661,868 | |||||||||||||||||
| Home BancShares, Inc. | ||||||||||||||||||||
| Non-GAAP Reconciliations | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||||||
| (Dollars in thousands) | 2017 | 2017 | 2017 | 2016 | 2016 | |||||||||||||||
| TANGIBLE BOOK VALUE PER COMMON SHARE | ||||||||||||||||||||
| Book value per common share: A/B | $ | 12.71 | $ | 10.32 | $ | 10.05 | $ | 9.45 | $ | 9.22 | ||||||||||
| Tangible book value per common share: (A-C-D)/B | 7.06 | 7.23 | 6.96 | 6.63 | 6.40 | |||||||||||||||
| Total stockholders' equity (A) | $ | 2,206,716 | $ | 1,476,032 | $ | 1,441,568 | $ | 1,327,490 | $ | 1,296,018 | ||||||||||
| End of period common shares outstanding (B) | 173,666 | 143,071 | 143,442 | 140,472 | 140,490 | |||||||||||||||
| Goodwill (C) | $ | 929,129 | $ | 420,941 | $ | 420,941 | $ | 377,983 | $ | 377,983 | ||||||||||
| Core deposit and other intangibles (D) | 50,982 | 21,019 | 21,885 | 18,311 | 19,073 | |||||||||||||||
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | ||||||||||||||||||||
| Equity to assets: B/A | 15.48 | % | 13.58 | % | 13.45 | % | 13.53 | % | 13.27 | % | ||||||||||
| Tangible common equity to tangible assets: (B-C-D)/(A-C-D) | 9.24 | % | 9.91 | % | 9.72 | % | 9.89 | % | 9.60 | % | ||||||||||
| Total assets (A) | $ | 14,255,967 | $ | 10,872,228 | $ | 10,717,468 | $ | 9,808,465 | $ | 9,764,238 | ||||||||||
| Total stockholders' equity (B) | 2,206,716 | 1,476,032 | 1,441,568 | 1,327,490 | 1,296,018 | |||||||||||||||
| Goodwill (C) | 929,129 | 420,941 | 420,941 | 377,983 | 377,983 | |||||||||||||||
| Core deposit and other intangibles (D) | 50,982 | 21,019 | 21,885 | 18,311 | 19,073 | |||||||||||||||