0001564590-21-036632.txt : 20210715 0001564590-21-036632.hdr.sgml : 20210715 20210715081556 ACCESSION NUMBER: 0001564590-21-036632 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20210715 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210715 DATE AS OF CHANGE: 20210715 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOME BANCSHARES INC CENTRAL INDEX KEY: 0001331520 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 710682831 STATE OF INCORPORATION: AR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51904 FILM NUMBER: 211091740 BUSINESS ADDRESS: STREET 1: 719 HARKRIDER CITY: CONWAY STATE: AR ZIP: 72032 BUSINESS PHONE: 501-339-2929 MAIL ADDRESS: STREET 1: 719 HARKRIDER CITY: CONWAY STATE: AR ZIP: 72032 8-K 1 homb-8k_20210715.htm 8-K EARNINGS RELEASE homb-8k_20210715.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 15, 2021

 

Home BancShares, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Arkansas

000-51904

71-0682831

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

 

 

 

 

 

719 Harkrider, Suite 100

Conway, Arkansas 72032

 

 

(Address of Principal Executive Offices) (Zip Code)

 

 

 

 

 

(501) 339-2929

 

 

(Registrant’s telephone number, including area code)

 

 

 

 

 

Not Applicable

 

 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.01 per share

 

HOMB

 

NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 


 

 

Item 2.02    Results of Operations and Financial Condition.

 

The Registrant hereby furnishes its July 15, 2021 press release announcing second quarter 2021 earnings, which is attached hereto as Exhibit 99.1 and incorporated herein by reference.

 

 

Item 7.01    Regulation FD Disclosure.

 

See Item 2.02. Results of Operations and Financial Condition.

 

 

Item 9.01    Financial Statements and Exhibits.

 

(d) Exhibits

 

99.1

Press Release: Home BancShares, Inc. Announces Second Quarter Earnings.

 

 

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 


 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

Home BancShares, Inc.

 

 

 

 

 

 

Date:

July 15, 2021

 

By:

 

/s/ Jennifer C. Floyd

 

 

 

 

 

Jennifer C. Floyd

 

 

 

 

 

Chief Accounting Officer

 

 

 

 

 

 

 

 

EX-99.1 2 homb-ex991_6.htm EX-99.1 homb-ex991_6.htm

 

EXHIBIT 99.1

For Immediate Release:

July 15, 2021

 

HOMB Continues Stable Performance in Second Quarter Delivering Record Net Income Through First Six Months of 2021

Conway, AR – Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, released quarterly earnings today.

Highlights of the Second Quarter of 2021:

Metric

Q2 2021

Q1 2021

Q4 2020

Q3 2020

Q2 2020

Net Income

$79.1 million

$91.6 million

$81.8 million

$69.3 million

$62.8 million

Total Revenue (net)

$172.4 million

$193.4 million

$181.9 million

$176.1 million

$173.7 million

Income (loss) before income taxes

$104.1 million

$120.5 million

$107.7 million

$90.4 million

$82.1 million

Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)

$99.4 million

$120.5 million

$107.7 million

$104.4 million

$102.7 million

Pre-tax net income to total revenue (net)

60.42%

62.32%

59.19%

51.32%

47.25%

P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)

57.66%

62.32%

59.19%

59.28%

59.15%

ROA

1.81%

2.22%

1.97%

1.66%

1.55%

NIM

3.61%

4.02%

4.00%

3.92%

4.11%

NIM, excluding PPP loans (non-GAAP)(1)

3.54%

3.87%

3.97%

3.98%

4.16%

Purchase Accounting Accretion

$5.8 million

$5.5 million

$5.7 million

$7.0 million

$7.0 million

ROE

11.92%

14.15%

12.72%

10.97%

10.27%

ROTCE (non-GAAP)(1)

19.12%

22.90%

20.96%

18.29%

17.40%

Diluted Earnings Per Share

$0.48

$0.55

$0.50

$0.42

$0.38

Non-Performing Assets to Total Assets

0.35%

0.38%

0.48%

0.47%

0.39%

Common Equity Tier 1 Capital

15.0%

14.3%

13.4%

12.6%

12.0%

Leverage

10.9%

11.1%

10.8%

10.4%

10.3%

Tier 1 Capital

15.6%

14.9%

14.0%

13.2%

12.6%

Total Risk-Based Capital

19.5%

18.8%

17.8%

16.9%

16.2%

Allowance for Credit Losses to Total Loans

2.36%

2.25%

2.19%

2.12%

1.99%

Allowance for Credit Losses to Total Loans, excluding PPP loans (non-GAAP)(1)

2.47%

2.40%

2.33%

2.28%

2.14%

(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.

“An annualized look at gross revenue and pre-tax, pre-provision, net income (PPNR) shows us on a steady track for the last four years,” said John Allison, Chairman. “Net income for the six-month period ended June 30, 2021 was $170.7 million, or $1.03 earnings per share, which is a record for the Company,” Allison stated. “The continued stable performance our team delivers each quarter brings both a sense of pride and comfort during these unstable economic times,” Allison continued.

“Jamie Dimon recently stated that JP Morgan Chase is effectively ‘stockpiling cash’ with plans to be patient because he believes in being prepared for higher rates and more inflation,” quoted Tracy French, Centennial Bank President and Chief Executive Officer. “One of the hardest things we do is maintain our discipline, and although loan growth might seem a little slow, we too plan to be patient as we do not intend to sell the future of our Company. We won’t be one to reach out in the market for short term gain to create long term pain,” French added.



 

 

Operating Highlights

Net income for the three-month period ended June 30, 2021 was $79.1 million, or $0.48 earnings per share. Net income for the six-month period ended June 30, 2021 was $170.7 million, or $1.03 earnings per share, which is a record for the Company.

During the second quarter of 2021, the Company recorded a negative provision for unfunded commitments of $4.8 million, or $0.02 per share. This was  primarily due to a single commercial & industrial loan for which a reserve was no longer considered necessary due to the borrower’s current cash flow position. The Company determined that an additional provision for credit losses on loans was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2021.

Our net interest margin was 3.61% for the three-month period ended June 30, 2021 compared to 4.02% for the three-month period ended March 31, 2021. The yield on loans was 5.40% and 5.56% for the three months ended June 30, 2021 and March 31, 2021, respectively, as average loans decreased from $11.02 billion to $10.54 billion. Additionally, the rate on interest bearing deposits decreased to 0.26% as of June 30, 2021 from 0.33% as of March 31, 2021, with average balances of $9.81 billion and $9.55 billion, respectively.

As of June 30, 2021, we had $473.9 million of Paycheck Protection Program (PPP) loans outstanding. These loans are at 1.00% plus the accretion of the origination fee. Excluding PPP loans, our net interest margin (non-GAAP) for the three-month period ended June 30, 2021 was 3.54%.(1) The PPP loans were accretive to the net interest margin by 7 basis points for the three-month period ended June 30, 2021 compared to 15 basis points for the three-month period ended March 31, 2021. This was primarily due to approximately $243.2 million of the Company’s PPP loans being forgiven during the second quarter of 2021 as well as the acceleration of deferred fees for the loans that were forgiven. The $243.2 million of PPP loans forgiven during the second quarter of 2021 were partially offset by $70.7 million in new PPP loan originations and funding during the second quarter of 2021. The deferred fee income decreased from $10.4 million to $6.3 million for the three-month periods ended March 31, 2021 and June 30, 2021, respectively.

The effects of the COVID-19 pandemic continued to create a significant amount of excess liquidity in the market. As a result of this excess liquidity, we had an increase of $966.6 million of average interest-bearing cash balances in the second quarter of 2021 compared to the first quarter of 2021. This excess liquidity diluted the net interest margin by 23 basis points for the three-month period ended June 30, 2021.

______________________________

(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.

 


 

 

Purchase accounting accretion on acquired loans was $5.8 million and $5.5 million and average purchase accounting loan discounts were $38.6 million and $43.9 million for the three-month periods ended June 30, 2021 and March 31, 2021, respectively. Net amortization of time deposit premiums was $30,000 per quarter and net average remaining time deposit premiums were $85,000 and $115,000 for the three-month periods ended June 30, 2021 and March 31, 2021, respectively.

Net interest income on a fully taxable equivalent basis was $143.1 million for the three-month period ended June 30, 2021 and $149.9 million for the three-month period ended March 31, 2021. This decrease in net interest income for the three-month period ended June 30, 2021 was the result of an $8.2 million decrease in interest income, which was partially offset by a $1.3 million decrease in interest expense. The $8.2 million decrease in interest income was primarily the result of a $9.2 million decrease in loan interest income, which was partially offset by a $727,000 net increase in investment income and a $297,000 increase in interest-bearing balances due from banks. The $1.3 million decrease in interest expense was primarily the result of a decrease in interest expense on deposits.

The Company reported $31.1 million of non-interest income for the second quarter of 2021. The most important components of the second quarter non-interest income were $9.7 million from other service charges and fees, $6.2 million from mortgage lending income, $5.1 million from service charges on deposit accounts, $3.0 million from other income, $2.6 million from dividends from FHLB, FRB, FNBB and other, and a $1.3 million adjustment for the increase in fair market value of marketable securities. Included in the $2.6 million in dividends from FHLB, FRB, FNBB and other were $2.2 million in special dividends from equity investments. The Company is still currently involved in these investments; however, past performance does not guarantee future performance.

Non-interest expense for the second quarter of 2021 was $73.0 million. The most important components of the second quarter non-interest expense were $42.5 million from salaries and employee benefits, $15.6 million in other expense and $9.0 million in occupancy and equipment expenses. For the second quarter of 2021, our efficiency ratio was 41.08%.



 

 

Financial Condition

 

Total loans receivable were $10.20 billion at June 30, 2021 compared to $10.78 billion at March 31, 2021. Total deposits were $13.89 billion at June 30, 2021 compared to $13.51 billion at March 31, 2021. Total assets were $17.63 billion at June 30, 2021 compared to $17.24 billion at March 31, 2021.

During the second quarter 2021, the Company experienced approximately $579.3 million in loan decline. Centennial CFG experienced $41.1 million of organic loan growth and had loans of $1.56 billion at June 30, 2021. Our legacy footprint experienced $447.9 million in organic loan decline and $172.5 million in PPP loan decline during the quarter.

Non-performing loans to total loans was 0.58% as of June 30, 2021 compared to 0.59% as of March 31, 2021. Non-performing assets to total assets decreased from 0.38% as of March 31, 2021 to 0.35% as of June 30, 2021. Net charge-offs were $2.5 million for both the first and second quarter of 2021.

Non-performing loans at June 30, 2021 were $22.4 million, $31.8 million, $380,000, $1.6 million and $2.7 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $58.9 million. Non-performing assets at June 30, 2021 were $23.2 million, $32.9 million, $424,000, $1.6 million and $2.8 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $60.9 million.

The Company’s allowance for credit losses on loans was $240.5 million at June 30, 2021, or 2.36% of total loans, compared to the allowance for credit losses of $242.9 million, or 2.25% of total loans, at March 31, 2021. The Company’s allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.47%(1) at June 30, 2021. As of June 30, 2021 and March 31, 2021, the Company’s allowance for credit losses on loans was 407.99% and 383.47% of its total non-performing loans, respectively.

Stockholders’ equity was $2.70 billion at June 30, 2021 compared to $2.65 billion at March 31, 2021, an increase of approximately $51.0 million. The increase in stockholders’ equity was primarily associated with the $56.0 million increase in retained earnings and a $9.7 million increase in accumulated other comprehensive income, which was partially offset by net stock repurchases and share-based compensation activity of $14.7 million. Book value per common share was $16.39 at June 30, 2021 compared to $16.02 at March 31, 2021. Tangible book value per common share (non-GAAP) was $10.31(1) at June 30, 2021 compared to $9.95(1) at March 31, 2021, an increase of 14.51% on an annualized basis.   

______________________________

(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.


 

Branches

 

The Company currently has 76 branches in Arkansas, 78 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, July 15, 2021. We encourage all participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10157552/e986b17690. 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: 10157552, which will be available until July 22, 2021 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; pre-tax, pre-provision, net income (PPNR); pre-tax, pre-provision, profit percentage; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets excluding intangible amortization; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity excluding intangible amortization; return on average tangible common equity, as adjusted; efficiency ratio, as adjusted; net interest margin, excluding PPP loans; allowance for credit losses to total loans, excluding PPP loans; tangible book value per common share and tangible common equity to tangible assets--to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions (including the effect of the PPP loans) that management believes are not indicative of the Company’s primary business operating results. 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 may contain 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, real estate values and unemployment; disruptions, uncertainties and related effects on our business and operations as a result of the ongoing coronavirus (COVID-19) pandemic and measures that have been or may be implemented or imposed in response to the pandemic, including the impact on, among other things, credit quality and liquidity; the ability to identify, complete and successfully integrate new acquisitions; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations, including those in response to the COVID-19 pandemic; technological changes and cybersecurity risks; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; 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, 2020, filed with the SEC on February 26, 2021.

Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, South Alabama and New York City. The Company’s common stock is traded through the NASDAQ Global Select Market under the symbol “HOMB.”

 

####

 


 

 

FOR MORE INFORMATION CONTACT:

Donna Townsell

Director of Investor Relations

Home BancShares, Inc.

(501) 328-4625

 


 

 

Home BancShares, Inc.

Consolidated End of Period Balance Sheets

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jun. 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sep. 30,

 

 

Jun. 30,

 

(In thousands)

 

2021

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

182,226

 

 

$

218,814

 

 

$

242,173

 

 

$

144,197

 

 

$

185,047

 

Interest-bearing deposits with other banks

 

 

2,759,027

 

 

 

2,259,734

 

 

 

1,021,615

 

 

 

899,140

 

 

 

1,030,609

 

    Cash and cash equivalents

 

 

2,941,253

 

 

 

2,478,548

 

 

 

1,263,788

 

 

 

1,043,337

 

 

 

1,215,656

 

Investment securities - available-for-sale, net of

   allowance for credit losses

 

 

3,053,712

 

 

 

2,539,123

 

 

 

2,473,781

 

 

 

2,361,900

 

 

 

2,238,005

 

Loans receivable

 

 

10,199,175

 

 

 

10,778,493

 

 

 

11,220,721

 

 

 

11,691,470

 

 

 

11,955,743

 

Allowance for credit losses

 

 

(240,451

)

 

 

(242,932

)

 

 

(245,473

)

 

 

(248,224

)

 

 

(238,340

)

    Loans receivable, net

 

 

9,958,724

 

 

 

10,535,561

 

 

 

10,975,248

 

 

 

11,443,246

 

 

 

11,717,403

 

Bank premises and equipment, net

 

 

278,502

 

 

 

278,620

 

 

 

278,614

 

 

 

280,364

 

 

 

279,498

 

Foreclosed assets held for sale

 

 

1,969

 

 

 

3,004

 

 

 

4,420

 

 

 

4,322

 

 

 

6,292

 

Cash value of life insurance

 

 

104,132

 

 

 

103,599

 

 

 

103,519

 

 

 

102,989

 

 

 

102,443

 

Accrued interest receivable

 

 

48,725

 

 

 

55,495

 

 

 

60,528

 

 

 

72,599

 

 

 

80,274

 

Deferred tax asset, net

 

 

72,273

 

 

 

77,145

 

 

 

70,249

 

 

 

75,167

 

 

 

74,333

 

Goodwill

 

 

973,025

 

 

 

973,025

 

 

 

973,025

 

 

 

973,025

 

 

 

973,025

 

Core deposit and other intangibles

 

 

27,886

 

 

 

29,307

 

 

 

30,728

 

 

 

32,149

 

 

 

33,569

 

Other assets

 

 

166,991

 

 

 

166,814

 

 

 

164,904

 

 

 

160,660

 

 

 

174,908

 

    Total assets

 

$

17,627,192

 

 

$

17,240,241

 

 

$

16,398,804

 

 

$

16,549,758

 

 

$

16,895,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Demand and non-interest-bearing

 

$

4,076,570

 

 

$

3,859,722

 

 

$

3,266,753

 

 

$

3,207,967

 

 

$

3,413,727

 

    Savings and interest-bearing transaction accounts

 

 

8,744,900

 

 

 

8,477,208

 

 

 

8,212,240

 

 

 

8,011,200

 

 

 

7,970,979

 

    Time deposits

 

 

1,069,871

 

 

 

1,175,664

 

 

 

1,246,797

 

 

 

1,718,299

 

 

 

1,793,230

 

       Total deposits

 

 

13,891,341

 

 

 

13,512,594

 

 

 

12,725,790

 

 

 

12,937,466

 

 

 

13,177,936

 

Securities sold under agreements to repurchase

 

 

150,540

 

 

 

162,929

 

 

 

168,931

 

 

 

158,447

 

 

 

162,858

 

FHLB and other borrowed funds

 

 

400,000

 

 

 

400,000

 

 

 

400,000

 

 

 

403,428

 

 

 

531,432

 

Accrued interest payable and other liabilities

 

 

118,415

 

 

 

148,999

 

 

 

127,999

 

 

 

139,485

 

 

 

161,095

 

Subordinated debentures

 

 

370,707

 

 

 

370,515

 

 

 

370,326

 

 

 

370,133

 

 

 

369,939

 

    Total liabilities

 

 

14,931,003

 

 

 

14,595,037

 

 

 

13,793,046

 

 

 

14,008,959

 

 

 

14,403,260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

1,645

 

 

 

1,651

 

 

 

1,651

 

 

 

1,652

 

 

 

1,652

 

Capital surplus

 

 

1,501,615

 

 

 

1,516,286

 

 

 

1,520,617

 

 

 

1,520,103

 

 

 

1,518,631

 

Retained earnings

 

 

1,163,810

 

 

 

1,107,818

 

 

 

1,039,370

 

 

 

980,699

 

 

 

932,856

 

Accumulated other comprehensive income

 

 

29,119

 

 

 

19,449

 

 

 

44,120

 

 

 

38,345

 

 

 

39,007

 

    Total stockholders' equity

 

 

2,696,189

 

 

 

2,645,204

 

 

 

2,605,758

 

 

 

2,540,799

 

 

 

2,492,146

 

    Total liabilities and stockholders' equity

 

$

17,627,192

 

 

$

17,240,241

 

 

$

16,398,804

 

 

$

16,549,758

 

 

$

16,895,406

 

 

 


 

 

Home BancShares, Inc.

Consolidated Statements of Income

(Unaudited)

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

Jun. 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sep. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

(In thousands)

 

2021

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Loans

 

$

141,684

 

 

$

150,917

 

 

$

153,407

 

 

$

154,787

 

 

$

158,996

 

 

$

292,601

 

 

$

317,144

 

   Investment securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       Taxable

 

 

7,185

 

 

 

6,253

 

 

 

6,900

 

 

 

7,227

 

 

 

8,693

 

 

 

13,438

 

 

 

18,469

 

       Tax-exempt

 

 

4,905

 

 

 

5,071

 

 

 

4,979

 

 

 

4,367

 

 

 

3,698

 

 

 

9,976

 

 

 

6,812

 

   Deposits - other banks

 

 

707

 

 

 

410

 

 

 

270

 

 

 

252

 

 

 

211

 

 

 

1,117

 

 

 

1,327

 

   Federal funds sold

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

21

 

Total interest income

 

 

154,481

 

 

 

162,651

 

 

 

165,556

 

 

 

166,633

 

 

 

171,598

 

 

 

317,132

 

 

 

343,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest on deposits

 

 

6,434

 

 

 

7,705

 

 

 

10,596

 

 

 

13,200

 

 

 

15,116

 

 

 

14,139

 

 

 

39,314

 

    Federal funds purchased

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

13

 

    FHLB borrowed funds

 

 

1,896

 

 

 

1,875

 

 

 

1,917

 

 

 

2,235

 

 

 

2,656

 

 

 

3,771

 

 

 

5,354

 

    Securities sold under agreements to repurchase

 

 

107

 

 

 

190

 

 

 

208

 

 

 

237

 

 

 

260

 

 

 

297

 

 

 

722

 

    Subordinated debentures

 

 

4,792

 

 

 

4,793

 

 

 

4,810

 

 

 

4,823

 

 

 

4,899

 

 

 

9,585

 

 

 

9,978

 

Total interest expense

 

 

13,229

 

 

 

14,563

 

 

 

17,531

 

 

 

20,495

 

 

 

22,931

 

 

 

27,792

 

 

 

55,381

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

141,252

 

 

 

148,088

 

 

 

148,025

 

 

 

146,138

 

 

 

148,667

 

 

 

289,340

 

 

 

288,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Provision for credit losses - loans

 

 

-

 

 

 

-

 

 

 

-

 

 

 

14,000

 

 

 

11,441

 

 

 

-

 

 

 

98,264

 

    Provision for credit loss - unfunded commitments

 

 

(4,752

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

9,214

 

 

 

(4,752

)

 

 

16,989

 

Total credit loss expense

 

 

(4,752

)

 

 

-

 

 

 

-

 

 

 

14,000

 

 

 

20,655

 

 

 

(4,752

)

 

 

115,253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit

     losses

 

 

146,004

 

 

 

148,088

 

 

 

148,025

 

 

 

132,138

 

 

 

128,012

 

 

 

294,092

 

 

 

173,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Service charges on deposit accounts

 

 

5,116

 

 

 

5,002

 

 

 

5,544

 

 

 

4,910

 

 

 

4,296

 

 

 

10,118

 

 

 

10,927

 

    Other service charges and fees

 

 

9,659

 

 

 

7,608

 

 

 

8,425

 

 

 

8,539

 

 

 

7,666

 

 

 

17,267

 

 

 

13,722

 

    Trust fees

 

 

444

 

 

 

522

 

 

 

420

 

 

 

378

 

 

 

397

 

 

 

966

 

 

 

835

 

    Mortgage lending income

 

 

6,202

 

 

 

8,167

 

 

 

10,071

 

 

 

10,177

 

 

 

6,196

 

 

 

14,369

 

 

 

8,817

 

    Insurance commissions

 

 

478

 

 

 

492

 

 

 

366

 

 

 

271

 

 

 

533

 

 

 

970

 

 

 

1,211

 

    Increase in cash value of life insurance

 

 

537

 

 

 

502

 

 

 

534

 

 

 

548

 

 

 

558

 

 

 

1,039

 

 

 

1,118

 

    Dividends from FHLB, FRB, FNBB & other

 

 

2,646

 

 

 

8,609

 

 

 

967

 

 

 

3,433

 

 

 

230

 

 

 

11,255

 

 

 

8,072

 

    Gain on SBA loans

 

 

1,149

 

 

 

-

 

 

 

304

 

 

 

-

 

 

 

-

 

 

 

1,149

 

 

 

341

 

    (Loss) gain on branches, equipment and

        other assets, net

 

 

(23

)

 

 

(29

)

 

 

217

 

 

 

(27

)

 

 

54

 

 

 

(52

)

 

 

136

 

    Gain on OREO, net

 

 

619

 

 

 

401

 

 

 

150

 

 

 

470

 

 

 

235

 

 

 

1,020

 

 

 

512

 

    Gain on securities, net

 

 

-

 

 

 

219

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

219

 

 

 

-

 

    Fair value adjustment for marketable securities

 

 

1,250

 

 

 

5,782

 

 

 

4,271

 

 

 

(1,350

)

 

 

919

 

 

 

7,032

 

 

 

(4,899

)

    Other income

 

 

3,043

 

 

 

8,001

 

 

 

2,616

 

 

 

2,602

 

 

 

3,939

 

 

 

11,044

 

 

 

7,158

 

Total non-interest income

 

 

31,120

 

 

 

45,276

 

 

 

33,885

 

 

 

29,951

 

 

 

25,023

 

 

 

76,396

 

 

 

47,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Salaries and employee benefits

 

 

42,462

 

 

 

42,059

 

 

 

43,022

 

 

 

41,511

 

 

 

40,088

 

 

 

84,521

 

 

 

79,417

 

    Occupancy and equipment

 

 

9,042

 

 

 

9,237

 

 

 

9,801

 

 

 

9,566

 

 

 

10,172

 

 

 

18,279

 

 

 

19,045

 

    Data processing expense

 

 

5,893

 

 

 

5,870

 

 

 

5,171

 

 

 

4,921

 

 

 

4,614

 

 

 

11,763

 

 

 

8,940

 

    Other operating expenses

 

 

15,585

 

 

 

15,700

 

 

 

16,247

 

 

 

15,714

 

 

 

16,084

 

 

 

31,285

 

 

 

34,030

 

Total non-interest expense

 

 

72,982

 

 

 

72,866

 

 

 

74,241

 

 

 

71,712

 

 

 

70,958

 

 

 

145,848

 

 

 

141,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

104,142

 

 

 

120,498

 

 

 

107,669

 

 

 

90,377

 

 

 

82,077

 

 

 

224,640

 

 

 

79,657

 

    Income tax expense (benefit)

 

 

25,072

 

 

 

28,896

 

 

 

25,875

 

 

 

21,057

 

 

 

19,250

 

 

 

53,968

 

 

 

16,323

 

Net income

 

$

79,070

 

 

$

91,602

 

 

$

81,794

 

 

$

69,320

 

 

$

62,827

 

 

$

170,672

 

 

$

63,334

 

 


 

 

Home BancShares, Inc.

Selected Financial Information

(Unaudited)

 

Quarter Ended

 

 

Six Months Ended

 

(Dollars and shares in thousands,

 

Jun. 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sep. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

except per share data)

 

2021

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

$

0.48

 

 

$

0.55

 

 

$

0.50

 

 

$

0.42

 

 

$

0.38

 

 

$

1.03

 

 

$

0.38

 

Diluted earnings per common share, as adjusted,

   excluding fair value adjustment for marketable

   securities, special dividend from equity

   investment, gain on securities, recoveries on

   historic losses, branch write-off expense,

   outsourced special project expense & merger

   and acquisition expenses (non-GAAP)(1)

 

 

0.46

 

 

 

0.47

 

 

 

0.48

 

 

 

0.41

 

 

 

0.38

 

 

 

0.93

 

 

 

0.39

 

Basic earnings per common share

 

 

0.48

 

 

 

0.55

 

 

 

0.50

 

 

 

0.42

 

 

 

0.38

 

 

 

1.03

 

 

 

0.38

 

Dividends per share - common

 

 

0.14

 

 

 

0.14

 

 

 

0.14

 

 

 

0.13

 

 

 

0.13

 

 

 

0.28

 

 

 

0.26

 

Book value per common share

 

 

16.39

 

 

 

16.02

 

 

 

15.78

 

 

 

15.38

 

 

 

15.09

 

 

 

16.39

 

 

 

15.09

 

Tangible book value per common share (non-GAAP)(1)

 

 

10.31

 

 

 

9.95

 

 

 

9.70

 

 

 

9.30

 

 

 

8.99

 

 

 

10.31

 

 

 

8.99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCK INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding

 

 

164,781

 

 

 

165,257

 

 

 

165,119

 

 

 

165,200

 

 

 

165,163

 

 

 

165,018

 

 

 

165,588

 

Average diluted shares outstanding

 

 

165,226

 

 

 

165,446

 

 

 

165,119

 

 

 

165,200

 

 

 

165,163

 

 

 

165,314

 

 

 

165,588

 

End of period common shares outstanding

 

 

164,488

 

 

 

165,141

 

 

 

165,095

 

 

 

165,163

 

 

 

165,206

 

 

 

164,488

 

 

 

165,206

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUALIZED PERFORMANCE METRICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.81

%

 

 

2.22

%

 

 

1.97

%

 

 

1.66

%

 

 

1.55

%

 

 

2.01

%

 

 

0.81

%

Return on average assets excluding fair value adjustment

   for marketable securities, special dividend from equity

   investment, gain on securities, recoveries on historic

   losses, branch write-off expense, outsourced special

   project expense & merger and acquisition expenses:

   (ROA, as adjusted) (non-GAAP)(1)

 

 

1.75

%

 

 

1.88

%

 

 

1.90

%

 

 

1.63

%

 

 

1.55

%

 

 

1.81

%

 

 

0.82

%

Return on average assets excluding intangible

   amortization (non-GAAP)(1)

 

 

1.95

%

 

 

2.39

%

 

 

2.13

%

 

 

1.80

%

 

 

1.68

%

 

 

2.16

%

 

 

0.90

%

Return on average common equity

 

 

11.92

%

 

 

14.15

%

 

 

12.72

%

 

 

10.97

%

 

 

10.27

%

 

 

13.02

%

 

 

5.16

%

Return on average common equity excluding fair value

   adjustment for marketable securities, special dividend

   from equity investment, gain on securities, recoveries

   on historic losses, branch write-off expense, outsourced

   special project expense & merger and acquisition

   expenses: (ROE, as adjusted) (non-GAAP)(1)

 

 

11.54

%

 

 

11.96

%

 

 

12.23

%

 

 

10.76

%

 

 

10.28

%

 

 

11.75

%

 

 

5.20

%

Return on average tangible common equity

   (non-GAAP)(1)

 

 

19.12

%

 

 

22.90

%

 

 

20.96

%

 

 

18.29

%

 

 

17.40

%

 

 

20.98

%

 

 

8.68

%

Return on average tangible common equity excluding

   intangible amortization (non-GAAP)(1)

 

 

19.38

%

 

 

23.16

%

 

 

21.22

%

 

 

18.56

%

 

 

17.70

%

 

 

21.24

%

 

 

8.98

%

Return on average tangible common equity excluding fair

   value adjustment for marketable securities, special

   dividend from equity investment, gain on securities,

   recoveries on historic losses, branch write-off expense,

   outsourced special project expense & merger and

   acquisition expenses: (ROTCE, as adjusted)

   (non-GAAP)(1)

 

 

18.51

%

 

 

19.35

%

 

 

20.15

%

 

 

17.93

%

 

 

17.41

%

 

 

18.92

%

 

 

8.75

%

 

(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)

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

Jun. 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sep. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

(Dollars in thousands)

 

2021

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

41.08

%

 

 

36.60

%

 

 

39.64

%

 

 

39.56

%

 

 

39.67

%

 

 

38.71

%

 

 

40.83

%

Efficiency ratio, as adjusted (non-GAAP)(1)

 

 

42.06

%

 

 

40.67

%

 

 

40.67

%

 

 

40.08

%

 

 

39.38

%

 

 

41.35

%

 

 

40.34

%

Net interest margin - FTE

 

 

3.61

%

 

 

4.02

%

 

 

4.00

%

 

 

3.92

%

 

 

4.11

%

 

 

3.81

%

 

 

4.17

%

Net interest margin - FTE, excluding PPP loans

   (non-GAAP)(1)

 

 

3.54

%

 

 

3.87

%

 

 

3.97

%

 

 

3.98

%

 

 

4.16

%

 

 

3.70

%

 

 

4.19

%

Fully taxable equivalent adjustment

 

$

1,810

 

 

$

1,857

 

 

$

1,778

 

 

$

1,576

 

 

$

1,434

 

 

$

3,667

 

 

$

2,661

 

Total revenue (net)

 

 

172,372

 

 

 

193,364

 

 

 

181,910

 

 

 

176,089

 

 

 

173,690

 

 

 

365,736

 

 

 

336,342

 

Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)

 

 

99,390

 

 

 

120,498

 

 

 

107,669

 

 

 

104,377

 

 

 

102,732

 

 

 

219,888

 

 

 

194,910

 

Pre-tax net income to total revenue (net)

 

 

60.42

%

 

 

62.32

%

 

 

59.19

%

 

 

51.32

%

 

 

47.25

%

 

 

61.42

%

 

 

23.68

%

P5NR (Pre-tax, pre-provision, profit percentage)

   (PPNR to total revenue (net)) (non-GAAP)(1)

 

 

57.66

%

 

 

62.32

%

 

 

59.19

%

 

 

59.28

%

 

 

59.15

%

 

 

60.12

%

 

 

57.95

%

Total purchase accounting accretion

 

 

5,797

 

 

 

5,485

 

 

 

5,736

 

 

 

6,957

 

 

 

7,036

 

 

 

11,282

 

 

 

14,683

 

Average purchase accounting loan discounts

 

 

38,568

 

 

 

43,940

 

 

 

49,563

 

 

 

55,835

 

 

 

62,822

 

 

 

41,218

 

 

 

66,105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

$

1,194

 

 

$

1,046

 

 

$

1,076

 

 

$

902

 

 

$

795

 

 

$

2,240

 

 

$

2,021

 

Merger and acquisition expenses

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

711

 

Amortization of intangibles

 

 

1,421

 

 

 

1,421

 

 

 

1,421

 

 

 

1,420

 

 

 

1,486

 

 

 

2,842

 

 

 

3,003

 

Electronic banking expense

 

 

2,616

 

 

 

2,238

 

 

 

2,282

 

 

 

2,426

 

 

 

2,054

 

 

 

4,854

 

 

 

3,769

 

Directors' fees

 

 

414

 

 

 

383

 

 

 

359

 

 

 

429

 

 

 

412

 

 

 

797

 

 

 

836

 

Due from bank service charges

 

 

273

 

 

 

249

 

 

 

254

 

 

 

259

 

 

 

239

 

 

 

522

 

 

 

462

 

FDIC and state assessment

 

 

1,108

 

 

 

1,363

 

 

 

1,493

 

 

 

1,607

 

 

 

1,846

 

 

 

2,471

 

 

 

3,394

 

Insurance

 

 

787

 

 

 

781

 

 

 

795

 

 

 

766

 

 

 

711

 

 

 

1,568

 

 

 

1,457

 

Legal and accounting

 

 

1,058

 

 

 

846

 

 

 

790

 

 

 

1,235

 

 

 

1,278

 

 

 

1,904

 

 

 

2,197

 

Other professional fees

 

 

1,796

 

 

 

1,613

 

 

 

1,528

 

 

 

1,661

 

 

 

1,735

 

 

 

3,409

 

 

 

4,961

 

Operating supplies

 

 

465

 

 

 

487

 

 

 

440

 

 

 

460

 

 

 

553

 

 

 

952

 

 

 

1,088

 

Postage

 

 

292

 

 

 

338

 

 

 

315

 

 

 

328

 

 

 

313

 

 

 

630

 

 

 

640

 

Telephone

 

 

365

 

 

 

346

 

 

 

347

 

 

 

321

 

 

 

310

 

 

 

711

 

 

 

634

 

Other expense

 

 

3,796

 

 

 

4,589

 

 

 

5,147

 

 

 

3,900

 

 

 

4,352

 

 

 

8,385

 

 

 

8,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Total other operating expenses

 

$

15,585

 

 

$

15,700

 

 

$

16,247

 

 

$

15,714

 

 

$

16,084

 

 

$

31,285

 

 

$

34,030

 

 

(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)

 

 

 

Jun. 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sep. 30,

 

 

Jun. 30,

 

(Dollars in thousands)

 

2021

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans to total deposits

 

 

73.42

%

 

 

79.77

%

 

 

88.17

%

 

 

90.37

%

 

 

90.73

%

Common equity to assets

 

 

15.30

%

 

 

15.34

%

 

 

15.89

%

 

 

15.35

%

 

 

14.75

%

Tangible common equity to tangible assets (non-GAAP)(1)

 

 

10.20

%

 

 

10.12

%

 

 

10.41

%

 

 

9.88

%

 

 

9.35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOANS RECEIVABLE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Non-farm/non-residential

 

$

4,144,375

 

 

$

4,289,142

 

 

$

4,429,060

 

 

$

4,342,141

 

 

$

4,325,795

 

      Construction/land development

 

 

1,541,482

 

 

 

1,612,973

 

 

 

1,562,298

 

 

 

1,748,928

 

 

 

1,818,151

 

      Agricultural

 

 

126,293

 

 

 

113,382

 

 

 

114,431

 

 

 

89,476

 

 

 

105,554

 

   Residential real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Residential 1-4 family

 

 

1,316,485

 

 

 

1,437,546

 

 

 

1,536,257

 

 

 

1,665,628

 

 

 

1,730,716

 

      Multifamily residential

 

 

332,256

 

 

 

377,661

 

 

 

536,538

 

 

 

491,380

 

 

 

482,635

 

Total real estate

 

 

7,460,891

 

 

 

7,830,704

 

 

 

8,178,584

 

 

 

8,337,553

 

 

 

8,462,851

 

Consumer

 

 

824,938

 

 

 

839,819

 

 

 

864,690

 

 

 

883,568

 

 

 

851,344

 

Commercial and industrial

 

 

1,612,826

 

 

 

1,794,787

 

 

 

1,896,442

 

 

 

2,161,818

 

 

 

2,228,816

 

Agricultural

 

 

69,152

 

 

 

65,017

 

 

 

66,869

 

 

 

85,365

 

 

 

80,023

 

Other

 

 

231,368

 

 

 

248,166

 

 

 

214,136

 

 

 

223,166

 

 

 

332,709

 

   Loans receivable

 

$

10,199,175

 

 

$

10,778,493

 

 

$

11,220,721

 

 

$

11,691,470

 

 

$

11,955,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paycheck Protection Program (PPP) loans (net of discounts)

    (included in total loans receivable)

 

 

473,894

 

 

 

646,382

 

 

 

675,225

 

 

 

825,362

 

 

 

819,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ALLOWANCE FOR CREDIT LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

242,932

 

 

$

245,473

 

 

$

248,224

 

 

$

238,340

 

 

$

228,923

 

Loans charged off

 

 

3,023

 

 

 

3,047

 

 

 

3,040

 

 

 

4,599

 

 

 

2,582

 

Recoveries of loans previously charged off

 

 

542

 

 

 

506

 

 

 

289

 

 

 

483

 

 

 

558

 

   Net loans charged off

 

 

2,481

 

 

 

2,541

 

 

 

2,751

 

 

 

4,116

 

 

 

2,024

 

Provision for credit losses - loans

 

 

-

 

 

 

-

 

 

 

-

 

 

 

14,000

 

 

 

11,441

 

Balance, end of period

 

$

240,451

 

 

$

242,932

 

 

$

245,473

 

 

$

248,224

 

 

$

238,340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average total loans

 

 

0.09

%

 

 

0.09

%

 

 

0.10

%

 

 

0.14

%

 

 

0.07

%

Allowance for credit losses to total loans

 

 

2.36

%

 

 

2.25

%

 

 

2.19

%

 

 

2.12

%

 

 

1.99

%

Allowance for credit losses to total loans, excluding PPP loans

 

 

2.47

%

 

 

2.40

%

 

 

2.33

%

 

 

2.28

%

 

 

2.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-PERFORMING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Non-accrual loans

 

$

55,269

 

 

$

59,142

 

 

$

64,528

 

 

$

65,148

 

 

$

52,074

 

   Loans past due 90 days or more

 

 

3,667

 

 

 

4,209

 

 

 

9,610

 

 

 

8,635

 

 

 

7,824

 

      Total non-performing loans

 

 

58,936

 

 

 

63,351

 

 

 

74,138

 

 

 

73,783

 

 

 

59,898

 

Other non-performing assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Foreclosed assets held for sale, net

 

 

1,969

 

 

 

3,004

 

 

 

4,420

 

 

 

4,322

 

 

 

6,292

 

   Other non-performing assets

 

 

-

 

 

 

-

 

 

 

-

 

 

 

247

 

 

 

247

 

      Total other non-performing assets

 

 

1,969

 

 

 

3,004

 

 

 

4,420

 

 

 

4,569

 

 

 

6,539

 

      Total non-performing assets

 

$

60,905

 

 

$

66,355

 

 

$

78,558

 

 

$

78,352

 

 

$

66,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses for loans to non-performing loans

 

 

407.99

%

 

 

383.47

%

 

 

331.10

%

 

 

336.42

%

 

 

397.91

%

Non-performing loans to total loans

 

 

0.58

%

 

 

0.59

%

 

 

0.66

%

 

 

0.63

%

 

 

0.50

%

Non-performing assets to total assets

 

 

0.35

%

 

 

0.38

%

 

 

0.48

%

 

 

0.47

%

 

 

0.39

%

(1)  Calculation of this metric and the reconciliation to GAAP is included in the schedules accompanying this release.


 

Home BancShares, Inc.

Consolidated Net Interest Margin

(Unaudited)

 

 

 

Three Months Ended

 

 

 

June 30, 2021

 

 

March 31, 2021

 

 

 

Average

 

 

Income/

 

 

Yield/

 

 

Average

 

 

Income/

 

 

Yield/

 

(Dollars in thousands)

 

Balance

 

 

Expense

 

 

Rate

 

 

Balance

 

 

Expense

 

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest-bearing balances due from banks

 

$

2,577,101

 

 

$

707

 

 

 

0.11

%

 

$

1,610,463

 

 

$

410

 

 

 

0.10

%

    Federal funds sold

 

 

51

 

 

 

-

 

 

 

0.00

%

 

 

119

 

 

 

-

 

 

 

0.00

%

    Investment securities - taxable

 

 

1,909,485

 

 

 

7,185

 

 

 

1.51

%

 

 

1,637,061

 

 

 

6,253

 

 

 

1.55

%

    Investment securities - non-taxable - FTE

 

 

864,416

 

 

 

6,527

 

 

 

3.03

%

 

 

848,158

 

 

 

6,732

 

 

 

3.22

%

    Loans receivable - FTE

 

 

10,541,466

 

 

 

141,872

 

 

 

5.40

%

 

 

11,023,139

 

 

 

151,113

 

 

 

5.56

%

       Total interest-earning assets

 

 

15,892,519

 

 

 

156,291

 

 

 

3.94

%

 

 

15,118,940

 

 

 

164,508

 

 

 

4.41

%

    Non-earning assets

 

 

1,598,840

 

 

 

 

 

 

 

 

 

 

 

1,599,950

 

 

 

 

 

 

 

 

 

       Total assets

 

$

17,491,359

 

 

 

 

 

 

 

 

 

 

$

16,718,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       Savings and interest-bearing transaction

         accounts

 

$

8,684,726

 

 

$

3,960

 

 

 

0.18

%

 

$

8,338,791

 

 

$

4,716

 

 

 

0.23

%

       Time deposits

 

 

1,123,287

 

 

 

2,474

 

 

 

0.88

%

 

 

1,209,431

 

 

 

2,989

 

 

 

1.00

%

          Total interest-bearing deposits

 

 

9,808,013

 

 

 

6,434

 

 

 

0.26

%

 

 

9,548,222

 

 

 

7,705

 

 

 

0.33

%

    Federal funds purchased

 

 

-

 

 

 

-

 

 

 

0.00

%

 

 

-

 

 

 

-

 

 

 

0.00

%

    Securities sold under agreement to repurchase

 

 

157,570

 

 

 

107

 

 

 

0.27

%

 

 

159,697

 

 

 

190

 

 

 

0.48

%

    FHLB borrowed funds

 

 

400,000

 

 

 

1,896

 

 

 

1.90

%

 

 

400,000

 

 

 

1,875

 

 

 

1.90

%

    Subordinated debentures

 

 

370,613

 

 

 

4,792

 

 

 

5.19

%

 

 

370,421

 

 

 

4,793

 

 

 

5.25

%

       Total interest-bearing liabilities

 

 

10,736,196

 

 

 

13,229

 

 

 

0.49

%

 

 

10,478,340

 

 

 

14,563

 

 

 

0.56

%

    Non-interest bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       Non-interest bearing deposits

 

 

3,966,968

 

 

 

 

 

 

 

 

 

 

 

3,480,050

 

 

 

 

 

 

 

 

 

       Other liabilities

 

 

128,048

 

 

 

 

 

 

 

 

 

 

 

134,882

 

 

 

 

 

 

 

 

 

          Total liabilities

 

 

14,831,212

 

 

 

 

 

 

 

 

 

 

 

14,093,272

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

2,660,147

 

 

 

 

 

 

 

 

 

 

 

2,625,618

 

 

 

 

 

 

 

 

 

       Total liabilities and shareholders' equity

 

$

17,491,359

 

 

 

 

 

 

 

 

 

 

$

16,718,890

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

3.45

%

 

 

 

 

 

 

 

 

 

 

3.85

%

Net interest income and margin - FTE

 

 

 

 

 

$

143,062

 

 

 

3.61

%

 

 

 

 

 

$

149,945

 

 

 

4.02

%

 


 

 

Home BancShares, Inc.

Consolidated Net Interest Margin

(Unaudited)

 

 

 

Six Months Ended

 

 

 

June 30, 2021

 

 

June 30, 2020

 

 

 

Average

 

 

Income/

 

 

Yield/

 

 

Average

 

 

Income/

 

 

Yield/

 

(Dollars in thousands)

 

Balance

 

 

Expense

 

 

Rate

 

 

Balance

 

 

Expense

 

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest-bearing balances due from banks

 

$

2,096,452

 

 

$

1,117

 

 

 

0.11

%

 

$

542,066

 

 

$

1,327

 

 

 

0.49

%

    Federal funds sold

 

 

84

 

 

 

-

 

 

 

0.00

%

 

 

2,609

 

 

 

21

 

 

 

1.62

%

    Investment securities - taxable

 

 

1,774,026

 

 

 

13,438

 

 

 

1.53

%

 

 

1,690,083

 

 

 

18,469

 

 

 

2.20

%

    Investment securities - non-taxable - FTE

 

 

856,332

 

 

 

13,259

 

 

 

3.12

%

 

 

417,919

 

 

 

8,981

 

 

 

4.32

%

    Loans receivable - FTE

 

 

10,780,972

 

 

 

292,985

 

 

 

5.48

%

 

 

11,399,178

 

 

 

317,636

 

 

 

5.60

%

       Total interest-earning assets

 

 

15,507,866

 

 

 

320,799

 

 

 

4.17

%

 

 

14,051,855

 

 

 

346,434

 

 

 

4.96

%

    Non-earning assets

 

 

1,599,393

 

 

 

 

 

 

 

 

 

 

 

1,674,486

 

 

 

 

 

 

 

 

 

       Total assets

 

$

17,107,259

 

 

 

 

 

 

 

 

 

 

$

15,726,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       Savings and interest-bearing transaction

         accounts

 

$

8,512,714

 

 

$

8,677

 

 

 

0.21

%

 

$

7,346,281

 

 

$

23,621

 

 

 

0.65

%

       Time deposits

 

 

1,166,121

 

 

 

5,462

 

 

 

0.94

%

 

 

1,899,673

 

 

 

15,693

 

 

 

1.66

%

          Total interest-bearing deposits

 

 

9,678,835

 

 

 

14,139

 

 

 

0.29

%

 

 

9,245,954

 

 

 

39,314

 

 

 

0.86

%

    Federal funds purchased

 

 

-

 

 

 

-

 

 

 

0.00

%

 

 

3,132

 

 

 

13

 

 

 

0.83

%

    Securities sold under agreement to repurchase

 

 

158,628

 

 

 

297

 

 

 

0.38

%

 

 

146,404

 

 

 

722

 

 

 

0.99

%

    FHLB borrowed funds

 

 

400,000

 

 

 

3,771

 

 

 

1.90

%

 

 

637,940

 

 

 

5,354

 

 

 

1.69

%

    Subordinated debentures

 

 

370,518

 

 

 

9,585

 

 

 

5.22

%

 

 

369,749

 

 

 

9,978

 

 

 

5.43

%

       Total interest-bearing liabilities

 

 

10,607,981

 

 

 

27,792

 

 

 

0.53

%

 

 

10,403,179

 

 

 

55,381

 

 

 

1.07

%

    Non-interest bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       Non-interest bearing deposits

 

 

3,724,854

 

 

 

 

 

 

 

 

 

 

 

2,724,537

 

 

 

 

 

 

 

 

 

       Other liabilities

 

 

131,446

 

 

 

 

 

 

 

 

 

 

 

128,102

 

 

 

 

 

 

 

 

 

          Total liabilities

 

 

14,464,281

 

 

 

 

 

 

 

 

 

 

 

13,255,818

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

2,642,978

 

 

 

 

 

 

 

 

 

 

 

2,470,523

 

 

 

 

 

 

 

 

 

       Total liabilities and shareholders' equity

 

$

17,107,259

 

 

 

 

 

 

 

 

 

 

$

15,726,341

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

3.64

%

 

 

 

 

 

 

 

 

 

 

3.89

%

Net interest income and margin - FTE

 

 

 

 

 

$

293,007

 

 

 

3.81

%

 

 

 

 

 

$

291,053

 

 

 

4.17

%

 


 

 

Home BancShares, Inc.

Non-GAAP Reconciliations

(Unaudited)

 

 

 

Quarter Ended

 

 

Six Months Ended

 

(Dollars and shares in thousands,

 

Jun. 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sep. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

except per share data)

 

2021

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS, AS ADJUSTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income available to common shareholders (A)

 

$

79,070

 

 

$

91,602

 

 

$

81,794

 

 

$

69,320

 

 

$

62,827

 

 

$

170,672

 

 

$

63,334

 

Pre-tax adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment for marketable securities

 

 

(1,250

)

 

 

(5,782

)

 

 

(4,271

)

 

 

1,350

 

 

 

(919

)

 

 

(7,032

)

 

 

4,899

 

Special dividend from equity investment

 

 

(2,200

)

 

 

(8,073

)

 

 

-

 

 

 

(3,181

)

 

 

-

 

 

 

(10,273

)

 

 

(7,004

)

Gain on securities

 

 

-

 

 

 

(219

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(219

)

 

 

-

 

Recoveries on historic losses

 

 

-

 

 

 

(5,107

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5,107

)

 

 

-

 

Branch write-off expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

981

 

 

 

-

 

 

 

981

 

Outsourced special project expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,092

 

Merger and acquisition expenses

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

711

 

Total pre-tax adjustments

 

 

(3,450

)

 

 

(19,181

)

 

 

(4,271

)

 

 

(1,831

)

 

 

62

 

 

 

(22,631

)

 

 

679

 

Tax-effect of adjustments

 

 

(902

)

 

 

(5,013

)

 

 

(1,116

)

 

 

(479

)

 

 

16

 

 

 

(5,915

)

 

 

177

 

Total adjustments after-tax (B)

 

 

(2,548

)

 

 

(14,168

)

 

 

(3,155

)

 

 

(1,352

)

 

 

46

 

 

 

(16,716

)

 

 

502

 

Earnings, as adjusted (C)

 

$

76,522

 

 

$

77,434

 

 

$

78,639

 

 

$

67,968

 

 

$

62,873

 

 

$

153,956

 

 

$

63,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average diluted shares outstanding (D)

 

 

165,226

 

 

 

165,446

 

 

 

165,119

 

 

 

165,200

 

 

 

165,163

 

 

 

165,314

 

 

 

165,588

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted earnings per share: (A/D)

 

$

0.48

 

 

$

0.55

 

 

$

0.50

 

 

$

0.42

 

 

$

0.38

 

 

$

1.03

 

 

$

0.38

 

Adjustments after-tax: (B/D)

 

 

(0.02

)

 

 

(0.08

)

 

 

(0.02

)

 

 

(0.01

)

 

 

-

 

 

 

(0.10

)

 

 

0.01

 

Diluted earnings per common share, as

   adjusted, excluding fair value adjustment

   for marketable securities, special dividend

   from equity investment, gain on securities,

   recoveries on historic losses, branch

   write-off expense, outsourced special

   project expense & merger and acquisition

   expenses: (C/D)

 

$

0.46

 

 

$

0.47

 

 

$

0.48

 

 

$

0.41

 

 

$

0.38

 

 

$

0.93

 

 

$

0.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUALIZED RETURN ON AVERAGE ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets: (A/G)

 

 

1.81

%

 

 

2.22

%

 

 

1.97

%

 

 

1.66

%

 

 

1.55

%

 

 

2.01

%

 

 

0.81

%

Return on average assets excluding fair

   value adjustment for marketable

   securities, special dividend from equity

   investment, gain on securities, recoveries

   on historic losses, branch write-off

   expense, outsourced special project

   expense & merger and acquisition

   expenses: (ROA, as adjusted) ((A+F)/G)

 

 

1.75

%

 

 

1.88

%

 

 

1.90

%

 

 

1.63

%

 

 

1.55

%

 

 

1.81

%

 

 

0.82

%

Return on average assets excluding intangible

   amortization: ((A+E)/(G-H))

 

 

1.95

%

 

 

2.39

%

 

 

2.13

%

 

 

1.80

%

 

 

1.68

%

 

 

2.16

%

 

 

0.90

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income available to common shareholders (A)

 

$

79,070

 

 

$

91,602

 

 

$

81,794

 

 

$

69,320

 

 

$

62,827

 

 

$

170,672

 

 

$

63,334

 

Amortization of intangibles (D)

 

 

1,421

 

 

 

1,421

 

 

 

1,421

 

 

 

1,420

 

 

 

1,486

 

 

 

2,842

 

 

 

3,003

 

Amortization of intangibles after-tax (E)

 

 

1,049

 

 

 

1,049

 

 

 

1,049

 

 

 

1,049

 

 

 

1,098

 

 

 

2,098

 

 

 

2,218

 

Adjustments after-tax (F)

 

 

(2,548

)

 

 

(14,168

)

 

 

(3,155

)

 

 

(1,352

)

 

 

46

 

 

 

(16,716

)

 

 

502

 

Average assets (G)

 

 

17,491,359

 

 

 

16,718,890

 

 

 

16,493,066

 

 

 

16,594,495

 

 

 

16,319,206

 

 

 

17,107,259

 

 

 

15,726,341

 

Average goodwill, core deposits & other

   intangible assets (H)

 

 

1,001,598

 

 

 

1,003,011

 

 

 

1,004,432

 

 

 

1,005,864

 

 

 

1,007,307

 

 

 

1,002,301

 

 

 

1,003,156

 

 


 

 

Home BancShares, Inc.

Non-GAAP Reconciliations

(Unaudited)

 

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

Jun. 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sep. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

(Dollars in thousands)

 

2021

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUALIZED RETURN ON AVERAGE COMMON EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average common equity: (A/D)

 

 

11.92

%

 

 

14.15

%

 

 

12.72

%

 

 

10.97

%

 

 

10.27

%

 

 

13.02

%

 

 

5.16

%

Return on average common equity excluding fair value

   adjustment for marketable securities, special dividend

   from equity investment, gain on securities, recoveries

   on historic losses, branch write-off expense,

   outsourced special project expense & merger and

   acquisition expenses: (ROE, as adjusted) ((A+C)/D)

 

 

11.54

%

 

 

11.96

%

 

 

12.23

%

 

 

10.76

%

 

 

10.28

%

 

 

11.75

%

 

 

5.20

%

Return on average tangible common equity:(A/(D-E))

 

 

19.12

%

 

 

22.90

%

 

 

20.96

%

 

 

18.29

%

 

 

17.40

%

 

 

20.98

%

 

 

8.68

%

Return on average tangible common equity

   excluding intangible amortization: (B/(D-E))

 

 

19.38

%

 

 

23.16

%

 

 

21.22

%

 

 

18.56

%

 

 

17.70

%

 

 

21.24

%

 

 

8.98

%

Return on average tangible common equity excluding

   fair value adjustment for marketable securities,

   special dividend from equity  investment, gain on

   securities, recoveries on  historic losses, branch

   write-off expense, outsourced special project expense

   & merger and acquisition expenses:

   (ROTCE, as adjusted) ((A+C)/(D-E))

 

 

18.51

%

 

 

19.35

%

 

 

20.15

%

 

 

17.93

%

 

 

17.41

%

 

 

18.92

%

 

 

8.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income available to common shareholders (A)

 

$

79,070

 

 

$

91,602

 

 

$

81,794

 

 

$

69,320

 

 

$

62,827

 

 

$

170,672

 

 

$

63,334

 

Earnings excluding intangible amortization (B)

 

 

80,119

 

 

 

92,651

 

 

 

82,843

 

 

 

70,369

 

 

 

63,925

 

 

 

172,770

 

 

 

65,553

 

Adjustments after-tax (C)

 

 

(2,548

)

 

 

(14,168

)

 

 

(3,155

)

 

 

(1,352

)

 

 

46

 

 

 

(16,716

)

 

 

502

 

Average common equity (D)

 

 

2,660,147

 

 

 

2,625,618

 

 

 

2,557,251

 

 

 

2,513,792

 

 

 

2,459,941

 

 

 

2,642,978

 

 

 

2,470,523

 

Average goodwill, core deposits & other intangible assets (E)

 

 

1,001,598

 

 

 

1,003,011

 

 

 

1,004,432

 

 

 

1,005,864

 

 

 

1,007,307

 

 

 

1,002,301

 

 

 

1,003,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EFFICIENCY RATIO & P5NR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio: ((D-F)/(B+C+E))

 

 

41.08

%

 

 

36.60

%

 

 

39.64

%

 

 

39.56

%

 

 

39.67

%

 

 

38.71

%

 

 

40.83

%

Efficiency ratio, as adjusted: ((D-F-H)/(B+C+E-G))

 

 

42.06

%

 

 

40.67

%

 

 

40.67

%

 

 

40.08

%

 

 

39.38

%

 

 

41.35

%

 

 

40.34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax net income to total revenue (net) (A/(B+C))

 

 

60.42

%

 

 

62.32

%

 

 

59.19

%

 

 

51.32

%

 

 

47.25

%

 

 

61.42

%

 

 

23.68

%

Pre-tax, pre-provision, net income (PPNR) (B+C-D)

 

$

99,390

 

 

$

120,498

 

 

$

107,669

 

 

$

104,377

 

 

$

102,732

 

 

$

219,888

 

 

$

194,910

 

P5NR (Pre-tax, pre-provision, profit

   percentage) PPNR to total revenue (net)) (B+C-D)/(B+C)

 

 

57.66

%

 

 

62.32

%

 

 

59.19

%

 

 

59.28

%

 

 

59.15

%

 

 

60.12

%

 

 

57.95

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax net income (A)

 

$

104,142

 

 

$

120,498

 

 

$

107,669

 

 

$

90,377

 

 

$

82,077

 

 

$

224,640

 

 

$

79,657

 

Net interest income (B)

 

 

141,252

 

 

 

148,088

 

 

 

148,025

 

 

 

146,138

 

 

 

148,667

 

 

 

289,340

 

 

 

288,392

 

Non-interest income (C)

 

 

31,120

 

 

 

45,276

 

 

 

33,885

 

 

 

29,951

 

 

 

25,023

 

 

 

76,396

 

 

 

47,950

 

Non-interest expense (D)

 

 

72,982

 

 

 

72,866

 

 

 

74,241

 

 

 

71,712

 

 

 

70,958

 

 

 

145,848

 

 

 

141,432

 

Fully taxable equivalent adjustment (E)

 

 

1,810

 

 

 

1,857

 

 

 

1,778

 

 

 

1,576

 

 

 

1,434

 

 

 

3,667

 

 

 

2,661

 

Amortization of intangibles (F)

 

 

1,421

 

 

 

1,421

 

 

 

1,421

 

 

 

1,420

 

 

 

1,486

 

 

 

2,842

 

 

 

3,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment for marketable securities

 

$

1,250

 

 

$

5,782

 

 

$

4,271

 

 

$

(1,350

)

 

$

919

 

 

$

7,032

 

 

$

(4,899

)

Gain (loss) on OREO

 

 

619

 

 

 

401

 

 

 

150

 

 

 

470

 

 

 

235

 

 

 

1,020

 

 

 

512

 

Gain (loss) on branches, equipment and other assets, net

 

 

(23

)

 

 

(29

)

 

 

217

 

 

 

(27

)

 

 

54

 

 

 

(52

)

 

 

136

 

Special dividend from equity investment

 

 

2,200

 

 

 

8,073

 

 

 

-

 

 

 

3,181

 

 

 

-

 

 

 

10,273

 

 

 

7,004

 

Gain (loss) on securities

 

 

-

 

 

 

219

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

219

 

 

 

-

 

Recoveries on historic losses

 

 

-

 

 

 

5,107

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,107

 

 

 

-

 

Total non-interest income adjustments (G)

 

$

4,046

 

 

$

19,553

 

 

$

4,638

 

 

$

2,274

 

 

$

1,208

 

 

$

23,599

 

 

$

2,753

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branch write-off expense

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

981

 

 

$

-

 

 

$

981

 

Merger Expenses

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

711

 

    Outsourced special project expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,092

 

Total non-interest expense adjustments (H)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

981

 

 

$

-

 

 

$

2,784

 


 

 

Home BancShares, Inc.

Non-GAAP Reconciliations

(Unaudited)

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

Jun. 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sep. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

 

Jun. 30,

 

(Dollars in thousands)

 

2021

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUALIZED NET INTEREST MARGIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin: (A/C)

 

 

3.61

%

 

 

4.02

%

 

 

4.00

%

 

 

3.92

%

 

 

4.11

%

 

 

3.81

%

 

 

4.17

%

Net interest margin, excluding PPP loans:

   (B/D)

 

 

3.54

%

 

 

3.87

%

 

 

3.97

%

 

 

3.98

%

 

 

4.16

%

 

 

3.70

%

 

 

4.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income - FTE (A)

 

$

143,062

 

 

$

149,945

 

 

$

149,803

 

 

$

147,714

 

 

$

150,101

 

 

$

293,007

 

 

$

291,053

 

PPP loan interest & discount accretion

   income

 

 

7,802

 

 

 

11,878

 

 

 

8,841

 

 

 

5,943

 

 

 

4,450

 

 

 

19,680

 

 

 

4,450

 

Net interest income - FTE, excluding

   PPP loans (B)

 

$

135,260

 

 

$

138,067

 

 

$

140,962

 

 

$

141,771

 

 

$

145,651

 

 

$

273,327

 

 

$

286,603

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest-earning assets (C)

 

$

15,892,519

 

 

$

15,118,940

 

 

$

14,900,381

 

 

$

14,975,146

 

 

$

14,678,465

 

 

$

15,507,866

 

 

$

14,051,855

 

Average PPP loans

 

 

581,371

 

 

 

633,790

 

 

 

775,861

 

 

 

821,977

 

 

 

585,946

 

 

 

607,436

 

 

 

292,973

 

Average interest-earning assets, excluding

   PPP loans (D)

 

$

15,311,148

 

 

$

14,485,150

 

 

$

14,124,520

 

 

$

14,153,169

 

 

$

14,092,519

 

 

$

14,900,430

 

 

$

13,758,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jun. 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sep. 30,

 

 

Jun. 30,

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TANGIBLE BOOK VALUE PER

COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per common share: (A/B)

 

$

16.39

 

 

$

16.02

 

 

$

15.78

 

 

$

15.38

 

 

$

15.09

 

 

 

 

 

 

 

 

 

Tangible book value per common share:

    ((A-C-D)/B)

 

 

10.31

 

 

 

9.95

 

 

 

9.70

 

 

 

9.30

 

 

 

8.99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity (A)

 

$

2,696,189

 

 

$

2,645,204

 

 

$

2,605,758

 

 

$

2,540,799

 

 

$

2,492,146

 

 

 

 

 

 

 

 

 

End of period common shares outstanding

   (B)

 

 

164,488

 

 

 

165,141

 

 

 

165,095

 

 

 

165,163

 

 

 

165,206

 

 

 

 

 

 

 

 

 

Goodwill (C)

 

 

973,025

 

 

 

973,025

 

 

 

973,025

 

 

 

973,025

 

 

 

973,025

 

 

 

 

 

 

 

 

 

Core deposit and other intangibles (D)

 

 

27,886

 

 

 

29,307

 

 

 

30,728

 

 

 

32,149

 

 

 

33,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TANGIBLE COMMON EQUITY

TO TANGIBLE ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity to assets: (B/A)

 

 

15.30

%

 

 

15.34

%

 

 

15.89

%

 

 

15.35

%

 

 

14.75

%

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets:

    ((B-C-D)/(A-C-D))

 

 

10.20

%

 

 

10.12

%

 

 

10.41

%

 

 

9.88

%

 

 

9.35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets (A)

 

$

17,627,192

 

 

$

17,240,241

 

 

$

16,398,804

 

 

$

16,549,758

 

 

$

16,895,406

 

 

 

 

 

 

 

 

 

Total stockholders' equity (B)

 

 

2,696,189

 

 

 

2,645,204

 

 

 

2,605,758

 

 

 

2,540,799

 

 

 

2,492,146

 

 

 

 

 

 

 

 

 

Goodwill (C)

 

 

973,025

 

 

 

973,025

 

 

 

973,025

 

 

 

973,025

 

 

 

973,025

 

 

 

 

 

 

 

 

 

Core deposit and other intangibles (D)

 

 

27,886

 

 

 

29,307

 

 

 

30,728

 

 

 

32,149

 

 

 

33,569

 

 

 

 

 

 

 

 

 

 

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