8-K
HOME BANCSHARES INC (HOMB)
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): April 15, 2022
_________________________________
HOME BANCSHARES, INC.
(Exact name of Registrant as Specified in Its Charter)
_________________________________
| Arkansas | 001-41093 | 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 | New York Stock Exchange |
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. o
Item 2.02 Results of Operations and Financial Condition.
Home BancShares, Inc. (the “Company”) hereby furnishes its April 21, 2022 press release announcing first quarter 2022 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 8.01 Other Events.
On April 15, 2022, the Company redeemed its $300.0 million in aggregate principal amount of 5.625% Fixed-to-Floating Rate Subordinated Notes due 2027 (“2027 Notes”). Each 2027 Note was redeemed pursuant to the terms of the Subordinated Indenture, as supplemented by the First Supplemental Indenture, each dated as of April 3, 2017, between the Company and U.S. Bank Trust Company, National Association, the Trustee for the 2027 Notes, at the redemption price of 100% of its principal amount, plus accrued and unpaid interest to, but excluding, the redemption date (the “Redemption Price”). As provided in the notice of redemption, dated March 15, 2022, previously given to the 2027 Note holders, each 2027 Note holder is entitled to receive the Redemption Price upon presentment and surrender of the 2027 Notes to the Trustee, who is acting as the Company’s paying agent in connection with the redemption.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 | Press Release: Home BancShares, Inc. Announces First 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: | April 21, 2022 | By: | /s/ Jennifer C. Floyd |
| Jennifer C. Floyd | |||
| Chief Accounting Officer |
Document
EXHIBIT 99.1
| For Immediate Release: | April 21, 2022 |
|---|
Home BancShares Beats EPS Estimates for First Quarter
Conway, AR – Home BancShares, Inc. (NYSE: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.
Highlights of the First Quarter of 2022:
| Metric | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 |
|---|---|---|---|---|---|
| Net Income | $64.9 million | $73.4 million | $75.0 million | $79.1 million | $91.6 million |
| Total Revenue (net) | $161.8 million | $171.0 million | $173.8 million | $172.4 million | $193.4 million |
| Income before income taxes | $84.9 million | $93.9 million | $98.2 million | $104.1 million | $120.5 million |
| Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) | $84.9 million | $93.9 million | $98.2 million | $99.4 million | $120.5 million |
| Pre-tax net income to total revenue (net) | 52.48% | 54.94% | 56.50% | 60.42% | 62.32% |
| P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) | 52.48% | 54.94% | 56.50% | 57.66% | 62.32% |
| ROA | 1.43% | 1.62% | 1.68% | 1.81% | 2.22% |
| NIM | 3.21% | 3.42% | 3.60% | 3.61% | 4.02% |
| NIM, excluding PPP loans (non-GAAP)(1) | 3.17% | 3.32% | 3.43% | 3.54% | 3.86% |
| Purchase Accounting Accretion | $3.1 million | $4.0 million | $4.9 million | $5.8 million | $5.5 million |
| ROE | 9.58% | 10.63% | 10.97% | 11.92% | 14.15% |
| ROTCE (non-GAAP)(1) | 15.03% | 16.73% | 17.39% | 19.12% | 22.90% |
| Diluted Earnings Per Share | $0.40 | $0.45 | $0.46 | $0.48 | $0.55 |
| Non-Performing Assets to Total Assets | 0.25% | 0.29% | 0.29% | 0.35% | 0.38% |
| Common Equity Tier 1 Capital | 14.9% | 15.4% | 15.2% | 15.0% | 14.3% |
| Leverage | 10.8% | 11.1% | 11.0% | 10.9% | 11.1% |
| Tier 1 Capital | 15.4% | 16.0% | 15.8% | 15.6% | 14.9% |
| Total Risk-Based Capital | 21.6% | 19.8% | 19.6% | 19.5% | 18.8% |
| Allowance for Credit Losses to Total Loans | 2.34% | 2.41% | 2.41% | 2.36% | 2.25% |
| Allowance for Credit Losses to Total Loans, excluding PPP loans (non-GAAP)(1) | 2.35% | 2.43% | 2.47% | 2.47% | 2.40% |
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
“The first quarter brought about record high wholesale prices, rising interest rates, future recession fears and global unrest, thus creating one of the most volatile quarters on record during my business career,” said John Allison, Chairman. “During this time, HOMB has stayed true to our discipline and still delivered solid performance during the quarter. We like how we have positioned ourselves in the market with over $3.5 billion in excess cash, and with rising interest rates, it seems as though we have played the chess game very well so far. We believe the Fed will be forced to continue raising rates at a faster pace in the near term. As a result, we could be poised to start deploying some of the cash in the remainder of the year,” continued Allison.
Operating Highlights
Net income for the three-month period ended March 31, 2022 was $64.9 million, or $0.40 earnings per share.
During the first quarter of 2022, the Company did not record any credit loss expense. 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 March 31, 2022. In addition, the Company determined that the current level of the unfunded commitment reserve was adequate and no additional provision for unfunded commitments was necessary.
Our net interest margin was 3.21% for the three-month period ended March 31, 2022 compared to 3.42% for the three-month period ended December 31, 2021. The yield on loans was 5.29% and 5.48% for the three months ended March 31, 2022 and December 31, 2021, respectively, as average loans increased from $9.91 billion to $9.94 billion. Additionally, the rate on interest bearing deposits decreased to 0.19% as of March 31, 2022 from 0.20% as of December 31, 2021, as average balances increased from $10.00 billion to $10.22 billion.
As of March 31, 2022, we had $59.6 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 March 31, 2022 was 3.17%(1). The PPP loans were accretive to the net interest margin by 4 basis points for the three-month period ended March 31, 2022 compared to 10 basis points for the three-month period ended December 31, 2021. This was primarily due to approximately $53.2 million of the Company’s PPP loans being forgiven during the first quarter of 2022 as well as the acceleration of deferred fees for the loans that were forgiven. The deferred fee income decreased from $5.4 million to $2.0 million for the three-month periods ended December 31, 2021 and March 31, 2022, respectively.
As a result of excess liquidity, we had an increase of $236.0 million of average interest-bearing cash balances in the first quarter of 2022 compared to the fourth quarter of 2021. This excess liquidity diluted the net interest margin by 5 basis points for the three-month period ended March 31, 2022.
During the first quarter of 2022, there was $1.4 million of event interest income compared to event interest income of $1.2 million for the fourth quarter of 2021. The increase in event income led to a 0.6 basis point increase to the net interest margin.
Purchase accounting accretion on acquired loans was $3.1 million and $4.0 million and average purchase accounting loan discounts were $25.4 million and $28.9 million for the three-month periods ended March 31, 2022 and December 31, 2021, respectively. The reduction in accretion income reduced the net interest margin by 2 basis points for the three-month period ended March 31, 2022.
Net interest income on a fully taxable equivalent basis was $132.9 million for the three-month period ended March 31, 2022 and $140.8 million for the three-month period ended December 31, 2021. This decrease in net interest income for the three-month period ended March 31, 2022 was the result of a $6.1 million decrease in interest income and a $1.8 million increase in interest expense. The $6.1 million decrease in interest income was primarily the result of a $7.3 million decrease in loan interest income, partially offset by an $835,000 increase in investment income. The $1.8 million increase in interest expense was due to a $2.1 million increase in interest expense on subordinated debentures, which was partially offset by a $261,000 decrease in interest expense on deposits. The increase in interest expense on subordinated debentures was the result of the Company completing an underwritten public offering of $300.0 million in aggregate principal of its 3.125% Fixed-to-Floating Rate Subordinated Notes due 2032 during the first quarter of 2022. The new subordinated debt was dilutive to the net interest margin by 5 basis points.
The Company reported $30.7 million of non-interest income for the first quarter of 2022. The most important components of the first quarter non-interest income were $7.7 million from other service charges and fees, $6.1 million from service charges on deposit accounts, $3.9 million in mortgage lending income, $7.9 million from other income, $2.1 million income from the fair value adjustment for marketable securities, $698,000 million from dividends from FHLB, FRB, FNBB and other, $574,000 from trust fees, $492,000 increase in cash value of life insurance, $480,000 from insurance commissions and $478,000 from gain on OREO. The $7.9 million in other income includes $3.3 million in recoveries on historic losses for a single borrower.
Non-interest expense for the first quarter of 2022 was $76.9 million. The most important components of the first quarter non-interest expense were $43.6 million from salaries and employee benefits, $16.3 million in other expense, $9.1 million in occupancy and equipment expenses and $7.0 million in data processing expenses. Also included within non-interest expense was $863,000 in merger and acquisition expenses. For the first quarter of 2022, our efficiency ratio was 46.15%.
Financial Condition
Total loans receivable were $10.05 billion at March 31, 2022 compared to $9.84 billion at December 31, 2021. Total deposits were $14.58 billion at March 31, 2022 compared to $14.26 billion at December 31, 2021. Total assets were $18.62 billion at March 31, 2022 compared to $18.05 billion at December 31, 2021.
During the first quarter of 2022, the Company experienced approximately $216.6 million in loan growth. On February 7, 2022, the Company completed the acquisition of $242.2 million of marine loans, from LendingClub Bank. Centennial CFG experienced $225.6 million of organic loan growth and had loans of $2.15 billion at March 31, 2022. Our legacy footprint experienced $198.0 million in organic loan decline and $53.2 million in PPP loan decline during the quarter.
Non-performing loans to total loans was 0.44% and 0.51% as of March 31, 2022 and December 31, 2021, respectively. Non-performing assets to total assets was 0.25% and 0.29% as of March 31, 2022 and December 31, 2021, respectively. Net charge-offs were $1.9 million and $2.0 million for the three months ended March 31, 2022 and December 31, 2021, respectively.
Non-performing loans at March 31, 2022 were $13.2 million, $24.8 million, $480,000, $1.4 million and $4.8 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $44.7 million. Non-performing assets at March 31, 2022 were $13.2 million, $25.9 million, $480,000, $1.4 million and $4.8 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $45.8 million.
The Company’s allowance for credit losses on loans was $234.8 million at March 31, 2022, or 2.34% of total loans, compared to the allowance for credit losses of $236.7 million, or 2.41% of total loans, at December 31, 2021. The Company’s allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.35%(1) and 2.43%(1) for the three months ended March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022 and December 31, 2021, the Company’s allowance for credit losses on loans was 525.50% and 471.61% of its total non-performing loans, respectively.
Stockholders’ equity was $2.69 billion at March 31, 2022 compared to $2.77 billion at December 31, 2021, a decrease of approximately $79.0 million. The decrease in stockholders’ equity was associated with a $115.0 million decrease in accumulated other comprehensive income as well as net stock repurchases and share-based compensation activity of $1.8 million, which was partially offset by a $37.8 million increase in retained earnings. Book value per common share was $16.41 at March 31, 2022 compared to $16.90 at December 31, 2021. Tangible book value per common share (non-GAAP) was $10.32(1) at March 31, 2022 compared to $10.80(1) at December 31, 2021, a decrease of 17.94% on an annualized basis.
Branches
The Company currently has 76 branches in Arkansas, 78 branches in Florida, 62 branches in Texas, 5 branches in Alabama and one branch in New York City.
Acquisition
The Company’s previously announced acquisition of Happy Bancshares, Inc. (“Happy”) and its bank subsidiary, Happy State Bank, was completed on April 1, 2022. As of March 31, 2022, Happy had approximately $6.76 billion in total assets, $3.60 billion in loans, and $5.85 billion in deposits. With the completion of the acquisition, the Company now operates 62 branches in Texas.
Subordinated Debt Payoff
On April 15, 2022, the Company completed the payoff of its $300.0 million in aggregate principal amount of 5.625% Fixed-to-Floating Rate Subordinated Notes due 2027. Each 2027 Note was redeemed pursuant to the terms of the Subordinated Indenture, as supplemented by the First Supplemental Indenture, each dated as of April 3, 2017, between the Company and U.S. Bank Trust Company, National Association, the Trustee for the 2027 Notes, at the redemption price of 100% of its principal amount, plus accrued and unpaid interest to, but excluding, the Redemption Date.
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, April 21, 2022. We strongly encourage all participants to pre-register for the conference call webcast or the live call using one of the following links. First, participants can pre-register for the conference call webcast using the following link: https://events.q4inc.com/attendee/468089456. Participants who pre-register will be given a unique webcast link to gain immediate access to the conference call webcast. Second, participants can pre-register for the live call using the following link: https://www.incommglobalevents.com/registration/q4inc/10378/home-bancshares-inc-1st-quarter-earnings-call/. Participants who pre-register will be given the phone number and unique access codes 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 1-844-200-6205, Passcode: 064337. A replay of the call will be available by calling 1-866-813-9403, Passcode: 129968, which will be available until April 28, 2022, at 10:59 p.m. CT (11:59 p.m. ET). Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com.
About Home BancShares
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, Texas, South Alabama and New York City. The Company’s common stock is traded through the New York Stock Exchange under the symbol “HOMB.” The Company was founded in 1998. Visit www.homebancshares.com or www.my100bank.com for more information.
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 assets excluding excess liquidity; 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 are not guarantees of future events, performance or results. When we use words like “may,” “plan,” “propose,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,” “would,” and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. 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 possibility that the acquisition of Happy may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, ongoing or future effects of the COVID-19 pandemic, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Home and Happy operate; the ability to promptly and effectively integrate the businesses of Home and Happy; the reaction to the transaction of the companies’ customers, employees and counterparties; diversion of management time on acquisition-related issues; the effect of any future mergers, acquisitions or other transactions to which we or our bank subsidiary may from time to time be a party, including as a result of one or more of the factors described above as they would relate to such transaction; the ability to identify, enter into and/or close additional 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, 2021, filed with the SEC on February 24, 2022.
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)
| (In thousands) | Mar 31,<br>2022 | Dec 31,<br>2021 | Sep 30,<br>2021 | Jun 30,<br>2021 | Mar 31,<br>2021 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||||
| Cash and due from banks | $ | 173,134 | $ | 119,908 | $ | 146,378 | $ | 182,226 | $ | 218,814 |
| Interest-bearing deposits with other banks | 3,446,324 | 3,530,407 | 3,133,878 | 2,759,027 | 2,259,734 | |||||
| Cash and cash equivalents | 3,619,458 | 3,650,315 | 3,280,256 | 2,941,253 | 2,478,548 | |||||
| Investment securities - available-for sale, <br> net of allowance for credit losses | 2,957,322 | 3,119,807 | 3,150,608 | 3,053,712 | 2,539,123 | |||||
| Investment securities - held-to-maturity | 499,265 | — | — | — | — | |||||
| Loans receivable | 10,052,714 | 9,836,089 | 9,901,100 | 10,199,175 | 10,778,493 | |||||
| Allowance for credit losses | (234,768) | (236,714) | (238,673) | (240,451) | (242,932) | |||||
| Loans receivable, net | 9,817,946 | 9,599,375 | 9,662,427 | 9,958,724 | 10,535,561 | |||||
| Bank premises and equipment, net | 274,503 | 275,760 | 276,972 | 278,502 | 278,620 | |||||
| Foreclosed assets held for sale | 1,144 | 1,630 | 1,171 | 1,969 | 3,004 | |||||
| Cash value of life insurance | 105,623 | 105,135 | 104,638 | 104,132 | 103,599 | |||||
| Accrued interest receivable | 46,934 | 46,736 | 48,577 | 48,725 | 55,495 | |||||
| Deferred tax asset, net | 116,605 | 78,290 | 69,724 | 72,273 | 77,145 | |||||
| Goodwill | 973,025 | 973,025 | 973,025 | 973,025 | 973,025 | |||||
| Core deposit and other intangibles | 23,624 | 25,045 | 26,466 | 27,886 | 29,307 | |||||
| Other assets | 182,546 | 177,020 | 171,192 | 166,991 | 166,814 | |||||
| Total assets | $ | 18,617,995 | $ | 18,052,138 | $ | 17,765,056 | $ | 17,627,192 | $ | 17,240,241 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Deposits: | ||||||||||
| Demand and non-interest-bearing | $ | 4,311,400 | $ | 4,127,878 | $ | 4,139,149 | $ | 4,076,570 | $ | 3,859,722 |
| Savings and interest-bearing <br>transaction accounts | 9,461,393 | 9,251,805 | 8,813,326 | 8,744,900 | 8,477,208 | |||||
| Time deposits | 808,141 | 880,887 | 1,050,896 | 1,069,871 | 1,175,664 | |||||
| Total deposits | 14,580,934 | 14,260,570 | 14,003,371 | 13,891,341 | 13,512,594 | |||||
| Securities sold under agreements to <br>repurchase | 151,151 | 140,886 | 141,002 | 150,540 | 162,929 | |||||
| FHLB and other borrowed funds | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | |||||
| Accrued interest payable and other<br>liabilities | 131,339 | 113,868 | 113,721 | 118,415 | 148,999 | |||||
| Subordinated debentures | 667,868 | 371,093 | 370,900 | 370,707 | 370,515 | |||||
| Total liabilities | 15,931,292 | 15,286,417 | 15,028,994 | 14,931,003 | 14,595,037 | |||||
| Stockholders' equity | ||||||||||
| Common stock | 1,638 | 1,637 | 1,640 | 1,645 | 1,651 | |||||
| Capital surplus | 1,485,524 | 1,487,373 | 1,492,588 | 1,501,615 | 1,516,286 | |||||
| Retained earnings | 1,304,098 | 1,266,249 | 1,215,831 | 1,163,810 | 1,107,818 | |||||
| Accumulated other comprehensive<br>(loss) income | (104,557) | 10,462 | 26,003 | 29,119 | 19,449 | |||||
| Total stockholders' equity | 2,686,703 | 2,765,721 | 2,736,062 | 2,696,189 | 2,645,204 | |||||
| Total liabilities and stockholders' <br>equity | $ | 18,617,995 | $ | 18,052,138 | $ | 17,765,056 | $ | 17,627,192 | $ | 17,240,241 |
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
| Quarter Ended | Three Months Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In thousands) | Mar 31,<br>2022 | Dec 31,<br>2021 | Sep 30,<br>2021 | Jun 30,<br>2021 | Mar 31,<br>2021 | Mar 31,<br>2022 | Mar 31,<br>2021 | |||||||
| Interest income | ||||||||||||||
| Loans | $ | 129,442 | $ | 136,750 | $ | 142,609 | $ | 141,684 | $ | 150,917 | $ | 129,442 | $ | 150,917 |
| Investment securities | ||||||||||||||
| Taxable | 9,080 | 8,121 | 8,495 | 7,185 | 6,253 | 9,080 | 6,253 | |||||||
| Tax-exempt | 4,707 | 4,827 | 4,839 | 4,905 | 5,071 | 4,707 | 5,071 | |||||||
| Deposits - other banks | 1,673 | 1,281 | 1,117 | 707 | 410 | 1,673 | 410 | |||||||
| Federal funds sold | 1 | — | — | — | — | 1 | — | |||||||
| Total interest income | 144,903 | 150,979 | 157,060 | 154,481 | 162,651 | 144,903 | 162,651 | |||||||
| Interest expense | ||||||||||||||
| Interest on deposits | 4,894 | 5,155 | 5,642 | 6,434 | 7,705 | 4,894 | 7,705 | |||||||
| FHLB borrowed funds | 1,875 | 1,916 | 1,917 | 1,896 | 1,875 | 1,875 | 1,875 | |||||||
| Securities sold under <br>agreements to repurchase | 108 | 98 | 102 | 107 | 190 | 108 | 190 | |||||||
| Subordinated debentures | 6,878 | 4,790 | 4,788 | 4,792 | 4,793 | 6,878 | 4,793 | |||||||
| Total interest expense | 13,755 | 11,959 | 12,449 | 13,229 | 14,563 | 13,755 | 14,563 | |||||||
| Net interest income | 131,148 | 139,020 | 144,611 | 141,252 | 148,088 | 131,148 | 148,088 | |||||||
| Provision for credit losses | — | — | — | — | — | — | — | |||||||
| Provision for credit loss - <br>unfunded commitments | — | — | — | (4,752) | — | — | — | |||||||
| Total credit loss expense | — | — | — | (4,752) | — | — | — | |||||||
| Net interest income after provision for credit<br>losses | 131,148 | 139,020 | 144,611 | 146,004 | 148,088 | 131,148 | 148,088 | |||||||
| Non-interest income | ||||||||||||||
| Service charges on deposit <br> accounts | 6,140 | 6,217 | 5,941 | 5,116 | 5,002 | 6,140 | 5,002 | |||||||
| Other service charges and fees | 7,733 | 11,133 | 8,051 | 9,659 | 7,608 | 7,733 | 7,608 | |||||||
| Trust fees | 574 | 515 | 479 | 444 | 522 | 574 | 522 | |||||||
| Mortgage lending income | 3,916 | 5,359 | 5,948 | 6,202 | 8,167 | 3,916 | 8,167 | |||||||
| Insurance commissions | 480 | 387 | 586 | 478 | 492 | 480 | 492 | |||||||
| Increase in cash value of life<br> insurance | 492 | 501 | 509 | 537 | 502 | 492 | 502 | |||||||
| Dividends from FHLB, FRB, <br> FNBB & other | 698 | 919 | 2,661 | 2,646 | 8,609 | 698 | 8,609 | |||||||
| Gain on SBA loans | 95 | 792 | 439 | 1,149 | — | 95 | — | |||||||
| Gain (loss) on branches, <br>equipment and other<br><br>assets, net | 16 | (19) | (34) | (23) | (29) | 16 | (29) | |||||||
| Gain on OREO, net | 478 | 737 | 246 | 619 | 401 | 478 | 401 | |||||||
| Gain on securities, net | — | — | — | — | 219 | — | 219 | |||||||
| Fair value adjustment for <br>marketable securities | 2,125 | 85 | 61 | 1,250 | 5,782 | 2,125 | 5,782 | |||||||
| Other income | 7,922 | 5,338 | 4,322 | 3,043 | 8,001 | 7,922 | 8,001 | |||||||
| Total non-interest income | 30,669 | 31,964 | 29,209 | 31,120 | 45,276 | 30,669 | 45,276 | |||||||
| Non-interest expense | ||||||||||||||
| Salaries and employee benefits | 43,551 | 43,765 | 42,469 | 42,462 | 42,059 | 43,551 | 42,059 | |||||||
| Occupancy and equipment | 9,144 | 9,047 | 9,305 | 9,042 | 9,237 | 9,144 | 9,237 | |||||||
| Data processing expense | 7,039 | 6,493 | 6,024 | 5,893 | 5,870 | 7,039 | 5,870 | |||||||
| Merger and acquisition <br> expenses | 863 | 880 | 1,006 | — | — | 863 | — | |||||||
| Other operating expenses | 16,299 | 16,865 | 16,815 | 15,585 | 15,700 | 16,299 | 15,700 | |||||||
| Total non-interest expense | 76,896 | 77,050 | 75,619 | 72,982 | 72,866 | 76,896 | 72,866 | |||||||
| Income before income taxes | 84,921 | 93,934 | 98,201 | 104,142 | 120,498 | 84,921 | 120,498 | |||||||
| Income tax expense | 20,029 | 20,577 | 23,209 | 25,072 | 28,896 | 20,029 | 28,896 | |||||||
| Net income | $ | 64,892 | $ | 73,357 | $ | 74,992 | $ | 79,070 | $ | 91,602 | $ | 64,892 | $ | 91,602 |
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
| Quarter Ended | Three Months Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars and shares in thousands, except per share data) | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||||
| PER SHARE DATA | |||||||||||||||||||||
| Diluted earnings per common share | $ | 0.40 | $ | 0.45 | $ | 0.46 | $ | 0.48 | $ | 0.55 | $ | 0.40 | $ | 0.55 | |||||||
| 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 &<br>merger and acquisition expenses (non-GAAP)(1) | 0.37 | 0.45 | 0.45 | 0.46 | 0.47 | 0.37 | 0.47 | ||||||||||||||
| Basic earnings per common share | 0.40 | 0.45 | 0.46 | 0.48 | 0.55 | 0.40 | 0.55 | ||||||||||||||
| Dividends per share - common | 0.165 | 0.14 | 0.14 | 0.14 | 0.14 | 0.165 | 0.14 | ||||||||||||||
| Book value per common share | 16.41 | 16.90 | 16.68 | 16.39 | 16.02 | 16.41 | 16.02 | ||||||||||||||
| Tangible book value per common share <br>(non-GAAP)(1) | 10.32 | 10.80 | 10.59 | 10.31 | 9.95 | 10.32 | 9.95 | ||||||||||||||
| STOCK INFORMATION | |||||||||||||||||||||
| Average common shares outstanding | 163,787 | 163,859 | 164,126 | 164,781 | 165,257 | 163,787 | 165,257 | ||||||||||||||
| Average diluted shares outstanding | 164,196 | 164,306 | 164,603 | 165,226 | 165,446 | 164,196 | 165,446 | ||||||||||||||
| End of period common shares outstanding | 163,758 | 163,699 | 164,008 | 164,488 | 165,141 | 163,758 | 165,141 | ||||||||||||||
| ANNUALIZED PERFORMANCE METRICS | |||||||||||||||||||||
| Return on average assets (ROA) | 1.43 | % | 1.62 | % | 1.68 | % | 1.81 | % | 2.22 | % | 1.43 | % | 2.22 | % | |||||||
| Return on average assets excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses & merger and acquisition expenses: (ROA, as adjusted) <br>(non-GAAP)(1) | 1.36 | 1.64 | 1.67 | 1.75 | 1.88 | 1.36 | 1.88 | ||||||||||||||
| Return on average assets excluding intangible <br>amortization (non-GAAP)(1) | 1.54 | 1.75 | 1.81 | 1.95 | 2.39 | 1.54 | 2.39 | ||||||||||||||
| Return on average assets excluding excess liquidity (non-GAAP)(1) | 1.74 | 1.96 | 1.98 | 2.09 | 2.42 | 1.74 | 2.42 | ||||||||||||||
| Return on average common equity (ROE) | 9.58 | 10.63 | 10.97 | 11.92 | 14.15 | 9.58 | 14.15 | ||||||||||||||
| Return on average common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses & merger and acquisition expenses: (ROE, as adjusted) <br>(non-GAAP)(1) | 9.09 | 10.72 | 10.87 | 11.54 | 11.95 | 9.09 | 11.95 | ||||||||||||||
| Return on average tangible common equity <br>(ROTCE) (non-GAAP)(1) | 15.03 | 16.73 | 17.39 | 19.12 | 22.90 | 15.03 | 22.90 | ||||||||||||||
| Return on average tangible common equity excluding intangible amortization (non-GAAP)(1) | 15.28 | 16.97 | 17.64 | 19.38 | 23.16 | 15.28 | 23.16 | ||||||||||||||
| 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 & <br>merger and acquisition expenses:<br><br>(ROTCE, as adjusted) (non-GAAP)(1) | 14.26 | 16.87 | 17.23 | 18.50 | 19.33 | 14.26 | 19.33 |
(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 | Three Months Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||||
| Efficiency ratio | 46.15 | % | 43.79 | % | 42.26 | % | 41.09 | % | 36.60 | % | 46.15 | % | 36.60 | % | |||||||
| Efficiency ratio, as adjusted (non-GAAP)(1) | 47.33 | 43.48 | 42.29 | 42.07 | 40.68 | 47.33 | 40.68 | ||||||||||||||
| Net interest margin - FTE (NIM) | 3.21 | 3.42 | 3.60 | 3.61 | 4.02 | 3.21 | 4.02 | ||||||||||||||
| Net interest margin - FTE, excluding PPP loans (non-GAAP)(1) | 3.17 | 3.32 | 3.43 | 3.54 | 3.86 | 3.17 | 3.86 | ||||||||||||||
| Fully taxable equivalent adjustment | $ | 1,738 | $ | 1,736 | $ | 1,748 | $ | 1,774 | $ | 1,821 | $ | 1,738 | $ | 1,821 | |||||||
| Total revenue (net) | 161,817 | 170,984 | 173,820 | 172,372 | 193,364 | 161,817 | 193,364 | ||||||||||||||
| Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) | 84,921 | 93,934 | 98,201 | 99,390 | 120,498 | 84,921 | 120,498 | ||||||||||||||
| Pre-tax net income to total revenue (net) | 52.48 | % | 54.94 | % | 56.50 | % | 60.42 | % | 62.32 | % | 52.48 | % | 62.32 | % | |||||||
| P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net))<br><br>(non-GAAP)(1) | 52.48 | 54.94 | 56.50 | 57.66 | 62.32 | 52.48 | 62.32 | ||||||||||||||
| Total purchase accounting accretion | $ | 3,089 | $ | 4,001 | $ | 4,868 | $ | 5,797 | $ | 5,485 | $ | 3,089 | $ | 5,485 | |||||||
| Average purchase accounting loan discounts | 25,359 | 28,882 | 33,320 | 38,568 | 43,940 | 25,359 | 43,940 | ||||||||||||||
| OTHER OPERATING EXPENSES | |||||||||||||||||||||
| Advertising | $ | 1,266 | $ | 1,411 | $ | 1,204 | $ | 1,194 | $ | 1,046 | $ | 1,266 | $ | 1,046 | |||||||
| Amortization of intangibles | 1,421 | 1,420 | 1,421 | 1,421 | 1,421 | 1,421 | 1,421 | ||||||||||||||
| Electronic banking expense | 2,538 | 2,442 | 2,521 | 2,616 | 2,238 | 2,538 | 2,238 | ||||||||||||||
| Directors' fees | 404 | 422 | 395 | 414 | 383 | 404 | 383 | ||||||||||||||
| Due from bank service charges | 270 | 257 | 265 | 273 | 249 | 270 | 249 | ||||||||||||||
| FDIC and state assessment | 1,668 | 1,353 | 1,648 | 1,108 | 1,363 | 1,668 | 1,363 | ||||||||||||||
| Insurance | 770 | 801 | 749 | 787 | 781 | 770 | 781 | ||||||||||||||
| Legal and accounting | 797 | 749 | 1,050 | 1,058 | 846 | 797 | 846 | ||||||||||||||
| Other professional fees | 1,609 | 1,754 | 1,787 | 1,796 | 1,613 | 1,609 | 1,613 | ||||||||||||||
| Operating supplies | 754 | 489 | 474 | 465 | 487 | 754 | 487 | ||||||||||||||
| Postage | 306 | 352 | 301 | 292 | 338 | 306 | 338 | ||||||||||||||
| Telephone | 337 | 343 | 371 | 365 | 346 | 337 | 346 | ||||||||||||||
| Other expense | 4,159 | 5,072 | 4,629 | 3,796 | 4,589 | 4,159 | 4,589 | ||||||||||||||
| Total other operating expenses | $ | 16,299 | $ | 16,865 | $ | 16,815 | $ | 15,585 | $ | 15,700 | $ | 16,299 | $ | 15,700 |
(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)
| (Dollars in thousands) | Mar 31,<br>2022 | Dec 31,<br>2021 | Sep 30,<br>2021 | Jun 30,<br>2021 | Mar 31,<br>2021 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BALANCE SHEET RATIOS | |||||||||||||||
| Total loans to total deposits | 68.94 | % | 68.97 | % | 70.71 | % | 73.42 | % | 79.77 | % | |||||
| Common equity to assets | 14.43 | 15.32 | 15.40 | 15.30 | 15.34 | ||||||||||
| Tangible common equity to tangible assets <br>(non-GAAP)(1) | 9.59 | 10.36 | 10.36 | 10.20 | 10.12 | ||||||||||
| . | |||||||||||||||
| LOANS RECEIVABLE | |||||||||||||||
| Real estate | |||||||||||||||
| Commercial real estate loans | |||||||||||||||
| Non-farm/non-residential | $ | 3,810,383 | $ | 3,889,284 | $ | 4,005,841 | $ | 4,144,375 | $ | 4,289,142 | |||||
| Construction/land development | 1,856,096 | 1,850,050 | 1,742,687 | 1,541,482 | 1,612,973 | ||||||||||
| Agricultural | 142,920 | 130,674 | 138,881 | 126,293 | 113,382 | ||||||||||
| Residential real estate loans | |||||||||||||||
| Residential 1-4 family | 1,223,890 | 1,274,953 | 1,273,988 | 1,316,485 | 1,437,546 | ||||||||||
| Multifamily residential | 248,650 | 280,837 | 274,131 | 332,256 | 377,661 | ||||||||||
| Total real estate | 7,281,939 | 7,425,798 | 7,435,528 | 7,460,891 | 7,830,704 | ||||||||||
| Consumer | 1,059,342 | 825,519 | 814,732 | 824,938 | 839,819 | ||||||||||
| Commercial and industrial | 1,510,205 | 1,386,747 | 1,414,079 | 1,612,826 | 1,794,787 | ||||||||||
| Agricultural | 48,095 | 43,920 | 68,272 | 69,152 | 65,017 | ||||||||||
| Other | 153,133 | 154,105 | 168,489 | 231,368 | 248,166 | ||||||||||
| Loans receivable | $ | 10,052,714 | $ | 9,836,089 | $ | 9,901,100 | $ | 10,199,175 | $ | 10,778,493 | |||||
| Paycheck Protection Program (PPP) loans (net of discounts) (included in total loans receivable) | 59,609 | 112,814 | 241,476 | 473,894 | 646,382 | ||||||||||
| ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||
| Balance, beginning of period | $ | 236,714 | $ | 238,673 | $ | 240,451 | $ | 242,932 | $ | 245,473 | |||||
| Loans charged off | 2,310 | 3,125 | 2,469 | 3,023 | 3,047 | ||||||||||
| Recoveries of loans previously charged off | 364 | 1,166 | 691 | 542 | 506 | ||||||||||
| Net loans charged off | 1,946 | 1,959 | 1,778 | 2,481 | 2,541 | ||||||||||
| Provision for credit losses - loans | — | — | — | — | — | ||||||||||
| Balance, end of period | $ | 234,768 | $ | 236,714 | $ | 238,673 | $ | 240,451 | $ | 242,932 | |||||
| Net charge-offs to average total loans | 0.08 | % | 0.08 | % | 0.07 | % | 0.09 | % | 0.09 | % | |||||
| Allowance for credit losses to total loans | 2.34 | 2.41 | 2.41 | 2.36 | 2.25 | ||||||||||
| Allowance for credit losses to total loans, excluding PPP loans | 2.35 | 2.43 | 2.47 | 2.47 | 2.40 | ||||||||||
| NON-PERFORMING ASSETS | |||||||||||||||
| Non-performing loans | |||||||||||||||
| Non-accrual loans | $ | 44,629 | $ | 47,158 | $ | 47,604 | $ | 55,269 | $ | 59,142 | |||||
| Loans past due 90 days or more | 46 | 3,035 | 3,311 | 3,667 | 4,209 | ||||||||||
| Total non-performing loans | 44,675 | 50,193 | 50,915 | 58,936 | 63,351 | ||||||||||
| Other non-performing assets | |||||||||||||||
| Foreclosed assets held for sale, net | 1,144 | 1,630 | 1,171 | 1,969 | 3,004 | ||||||||||
| Other non-performing assets | — | — | — | — | — | ||||||||||
| Total other non-performing assets | 1,144 | 1,630 | 1,171 | 1,969 | 3,004 | ||||||||||
| Total non-performing assets | $ | 45,819 | $ | 51,823 | $ | 52,086 | $ | 60,905 | $ | 66,355 | |||||
| Allowance for credit losses for loans to non-performing loans | 525.50 | % | 471.61 | % | 468.77 | % | 407.99 | % | 383.47 | % | |||||
| Non-performing loans to total loans | 0.44 | 0.51 | 0.51 | 0.58 | 0.59 | ||||||||||
| Non-performing assets to total assets | 0.25 | 0.29 | 0.29 | 0.35 | 0.38 |
(1) Calculation of this metric and the reconciliation to GAAP is included in the schedules accompanying this release.
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
| Three Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2022 | December 31, 2021 | |||||||||||
| (Dollars in thousands) | Average<br>Balance | Income/<br>Expense | Yield/<br>Rate | Average<br>Balance | Income/<br>Expense | Yield/<br>Rate | ||||||
| ASSETS | ||||||||||||
| Earning assets | ||||||||||||
| Interest-bearing balances due from banks | $ | 3,497,894 | $ | 1,673 | 0.19 | % | $ | 3,261,846 | $ | 1,281 | 0.16 | % |
| Federal funds sold | 1,751 | 1 | 0.23 | 33 | — | — | ||||||
| Investment securities - taxable | 2,486,401 | 9,080 | 1.48 | 2,278,440 | 8,121 | 1.41 | ||||||
| Investment securities - non-taxable - FTE | 850,722 | 6,284 | 3.00 | 858,692 | 6,408 | 2.96 | ||||||
| Loans receivable - FTE | 9,937,993 | 129,603 | 5.29 | 9,909,711 | 136,905 | 5.48 | ||||||
| Total interest-earning assets | 16,774,761 | 146,641 | 3.55 | 16,308,722 | 152,715 | 3.72 | ||||||
| Non-earning assets | 1,618,314 | 1,606,005 | ||||||||||
| Total assets | $ | 18,393,075 | $ | 17,914,727 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Liabilities | ||||||||||||
| Interest-bearing liabilities | ||||||||||||
| Savings and interest-bearing transaction accounts | $ | 9,363,793 | $ | 3,873 | 0.17 | % | $ | 9,037,302 | $ | 3,667 | 0.16 | % |
| Time deposits | 854,593 | 1,021 | 0.48 | 958,309 | 1,488 | 0.62 | ||||||
| Total interest-bearing deposits | 10,218,386 | 4,894 | 0.19 | 9,995,611 | 5,155 | 0.20 | ||||||
| Securities sold under agreement to repurchase | 137,565 | 108 | 0.32 | 143,811 | 98 | 0.27 | ||||||
| FHLB borrowed funds | 400,000 | 1,875 | 1.90 | 400,000 | 1,916 | 1.90 | ||||||
| Subordinated debentures | 611,888 | 6,878 | 4.56 | 370,999 | 4,790 | 5.12 | ||||||
| Total interest-bearing liabilities | 11,367,839 | 13,755 | 0.49 | 10,910,421 | 11,959 | 0.43 | ||||||
| Non-interest bearing liabilities | ||||||||||||
| Non-interest bearing deposits | 4,155,894 | 4,149,978 | ||||||||||
| Other liabilities | 121,362 | 116,023 | ||||||||||
| Total liabilities | 15,645,095 | 15,176,422 | ||||||||||
| Shareholders' equity | 2,747,980 | 2,738,305 | ||||||||||
| Total liabilities and shareholders' equity | $ | 18,393,075 | $ | 17,914,727 | ||||||||
| Net interest spread | 3.06 | % | 3.29 | % | ||||||||
| Net interest income and margin - FTE | $ | 132,886 | 3.21 | $ | 140,756 | 3.42 |
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
| Three Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2022 | March 31, 2021 | |||||||||||
| (Dollars in thousands) | Average<br>Balance | Income/<br>Expense | Yield/<br>Rate | Average<br>Balance | Income/<br>Expense | Yield/<br>Rate | ||||||
| ASSETS | ||||||||||||
| Earning assets | ||||||||||||
| Interest-bearing balances due from banks | $ | 3,497,894 | $ | 1,673 | 0.19 | % | $ | 1,610,463 | $ | 410 | 0.10 | % |
| Federal funds sold | 1,751 | 1 | 0.23 | 119 | — | — | ||||||
| Investment securities - taxable | 2,486,401 | 9,080 | 1.48 | 1,637,061 | 6,253 | 1.55 | ||||||
| Investment securities - non-taxable - FTE | 850,722 | 6,284 | 3.00 | 848,158 | 6,700 | 3.20 | ||||||
| Loans receivable - FTE | 9,937,993 | 129,603 | 5.29 | 11,023,139 | 151,109 | 5.56 | ||||||
| Total interest-earning assets | 16,774,761 | 146,641 | 3.55 | 15,118,940 | 164,472 | 4.41 | ||||||
| Non-earning assets | 1,618,314 | 1,599,950 | ||||||||||
| Total assets | $ | 18,393,075 | $ | 16,718,890 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Liabilities | ||||||||||||
| Interest-bearing liabilities | ||||||||||||
| Savings and interest-bearing transaction accounts | $ | 9,363,793 | $ | 3,873 | 0.17 | % | $ | 8,338,791 | $ | 4,716 | 0.23 | % |
| Time deposits | 854,593 | 1,021 | 0.48 | 1,209,431 | 2,989 | 1.00 | ||||||
| Total interest-bearing deposits | 10,218,386 | 4,894 | 0.19 | 9,548,222 | 7,705 | 0.33 | ||||||
| Securities sold under agreement to repurchase | 137,565 | 108 | 0.32 | 159,697 | 190 | 0.48 | ||||||
| FHLB borrowed funds | 400,000 | 1,875 | 1.90 | 400,000 | 1,875 | 1.90 | ||||||
| Subordinated debentures | 611,888 | 6,878 | 4.56 | 370,421 | 4,793 | 5.25 | ||||||
| Total interest-bearing liabilities | 11,367,839 | 13,755 | 0.49 | 10,478,340 | 14,563 | 0.56 | ||||||
| Non-interest bearing liabilities | ||||||||||||
| Non-interest bearing deposits | 4,155,894 | 3,480,050 | ||||||||||
| Other liabilities | 121,362 | 134,882 | ||||||||||
| Total liabilities | 15,645,095 | 14,093,272 | ||||||||||
| Shareholders' equity | 2,747,980 | 2,625,618 | ||||||||||
| Total liabilities and shareholders' equity | $ | 18,393,075 | $ | 16,718,890 | ||||||||
| Net interest spread | 3.06 | % | 3.85 | % | ||||||||
| Net interest income and margin - FTE | $ | 132,886 | 3.21 | $ | 149,909 | 4.02 |
Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Three Months Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars and shares in thousands,<br>except per share data) | Mar 31,<br>2022 | Dec 31,<br>2021 | Sep 30,<br>2021 | Jun 30,<br>2021 | Mar 31,<br>2021 | Mar 31,<br>2022 | Mar 31,<br>2021 | ||||||||||||||
| EARNINGS, AS ADJUSTED | |||||||||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 64,892 | $ | 73,357 | $ | 74,992 | $ | 79,070 | $ | 91,602 | $ | 64,892 | $ | 91,602 | |||||||
| Pre-tax adjustments | |||||||||||||||||||||
| Fair value adjustment for marketable securities | (2,125) | (85) | (61) | (1,250) | (5,782) | (2,125) | (5,782) | ||||||||||||||
| Special dividend from equity investment | — | — | (2,227) | (2,200) | (8,073) | — | (8,073) | ||||||||||||||
| Gain on securities | — | — | — | — | (219) | — | (219) | ||||||||||||||
| Recoveries on historic losses | (3,288) | — | — | — | (5,107) | (3,288) | (5,107) | ||||||||||||||
| Merger and acquisition expenses | 863 | 880 | 1,006 | — | — | 863 | — | ||||||||||||||
| Total pre-tax adjustments | (4,550) | 795 | (1,282) | (3,450) | (19,181) | (4,550) | (19,181) | ||||||||||||||
| Tax-effect of adjustments | (1,220) | 188 | (587) | (888) | (4,937) | (1,220) | (4,937) | ||||||||||||||
| Total adjustments after-tax (B) | (3,330) | 607 | (695) | (2,562) | (14,244) | (3,330) | (14,244) | ||||||||||||||
| Earnings, as adjusted (C) | $ | 61,562 | $ | 73,964 | $ | 74,297 | $ | 76,508 | $ | 77,358 | $ | 61,562 | $ | 77,358 | |||||||
| Average diluted shares outstanding (D) | 164,196 | 164,306 | 164,603 | 165,226 | 165,446 | 164,196 | 165,446 | ||||||||||||||
| GAAP diluted earnings per share: (A/D) | $ | 0.40 | $ | 0.45 | $ | 0.46 | $ | 0.48 | $ | 0.55 | $ | 0.40 | $ | 0.55 | |||||||
| Adjustments after-tax: (B/D) | (0.03) | — | (0.01) | (0.02) | (0.08) | (0.03) | (0.08) | ||||||||||||||
| 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 & merger and acquisition expenses: (C/D) | $ | 0.37 | $ | 0.45 | $ | 0.45 | $ | 0.46 | $ | 0.47 | $ | 0.37 | $ | 0.47 | |||||||
| ANNUALIZED RETURN ON AVERAGE ASSETS | |||||||||||||||||||||
| Return on average assets: (A/G) | 1.43 | % | 1.62 | % | 1.68 | % | 1.81 | % | 2.22 | % | 1.43 | % | 2.22 | % | |||||||
| Return on average assets excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses & merger and acquisition expenses: <br>(ROA, as adjusted) ((A+F)/G) | 1.36 | 1.64 | 1.67 | 1.75 | 1.88 | 1.36 | 1.88 | ||||||||||||||
| Return on average assets excluding intangible amortization: ((A+E)/(G-H)) | 1.54 | 1.75 | 1.81 | 1.95 | 2.39 | 1.54 | 2.39 | ||||||||||||||
| Return on average assets excluding excess liquidity: (A/(G-I)) | 1.74 | 1.96 | 1.98 | 2.09 | 2.42 | 1.74 | 2.42 | ||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 64,892 | $ | 73,357 | $ | 74,992 | $ | 79,070 | $ | 91,602 | $ | 64,892 | $ | 91,602 | |||||||
| Amortization of intangibles (D) | 1,421 | 1,420 | 1,421 | 1,421 | 1,421 | 1,421 | 1,421 | ||||||||||||||
| Amortization of intangibles after-tax (E) | 1,049 | 1,054 | 1,055 | 1,055 | 1,055 | 1,049 | 1,055 | ||||||||||||||
| Adjustments after-tax (F) | (3,330) | 607 | (695) | (2,562) | (14,244) | (3,330) | (14,244) | ||||||||||||||
| Average assets (G) | 18,393,075 | 17,914,727 | 17,695,226 | 17,491,359 | 16,718,890 | 18,393,075 | 16,718,890 | ||||||||||||||
| Average goodwill, core deposits & other intangible assets (H) | 997,338 | 998,760 | 1,000,175 | 1,001,598 | 1,003,011 | 997,338 | 1,003,011 | ||||||||||||||
| Average interest bearing cash balance | 3,497,894 | 3,261,846 | 2,914,785 | 2,577,101 | 1,610,463 | 3,497,894 | 1,610,463 | ||||||||||||||
| Average historical interest bearing cash balance | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | ||||||||||||||
| Average excess cash balance (I) | 3,272,894 | 3,036,846 | 2,689,785 | 2,352,101 | 1,385,463 | 3,272,894 | 1,385,463 |
Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Three Months Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | Mar 31,<br>2022 | Dec 31,<br>2021 | Sep 30,<br>2021 | Jun 30,<br>2021 | Mar 31,<br>2021 | Mar 31,<br>2022 | Mar 31,<br>2021 | ||||||||||||||
| ANNUALIZED RETURN ON AVERAGE COMMON EQUITY | |||||||||||||||||||||
| Return on average common equity: (A/D) | 9.58 | % | 10.63 | % | 10.97 | % | 11.92 | % | 14.15 | % | 9.58 | % | 14.15 | % | |||||||
| Return on average common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses & merger and acquisition expenses: <br>(ROE, as adjusted) ((A+C)/D) | 9.09 | 10.72 | 10.87 | 11.54 | 11.95 | 9.09 | 11.95 | ||||||||||||||
| Return on average tangible common equity: (A/(D-E)) | 15.03 | 16.73 | 17.39 | 19.12 | 22.90 | 15.03 | 22.90 | ||||||||||||||
| Return on average tangible common equity excluding intangible amortization: (B/(D-E)) | 15.28 | 16.97 | 17.64 | 19.38 | 23.16 | 15.28 | 23.16 | ||||||||||||||
| 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 & merger and acquisition expenses: (ROTCE, as adjusted) ((A+C)/(D-E)) | 14.26 | 16.87 | 17.23 | 18.50 | 19.33 | 14.26 | 19.33 | ||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 64,892 | $ | 73,357 | $ | 74,992 | $ | 79,070 | $ | 91,602 | $ | 64,892 | $ | 91,602 | |||||||
| Earnings excluding intangible amortization (B) | 65,941 | 74,411 | 76,047 | 80,125 | 92,657 | 65,941 | 92,657 | ||||||||||||||
| Adjustments after-tax (C) | (3,330) | 607 | (695) | (2,562) | (14,244) | (3,330) | (14,244) | ||||||||||||||
| Average common equity (D) | 2,747,980 | 2,738,305 | 2,710,953 | 2,660,147 | 2,625,618 | 2,747,980 | 2,625,618 | ||||||||||||||
| Average goodwill, core deposits & other intangible assets (E) | 997,338 | 998,760 | 1,000,175 | 1,001,598 | 1,003,011 | 997,338 | 1,003,011 | ||||||||||||||
| EFFICIENCY RATIO & P5NR | |||||||||||||||||||||
| Efficiency ratio: ((D-F)/(B+C+E)) | 46.15 | % | 43.79 | % | 42.26 | % | 41.09 | % | 36.60 | % | 46.15 | % | 36.60 | % | |||||||
| Efficiency ratio, as adjusted: ((D-F-H)/(B+C+E-G)) | 47.33 | 43.48 | 42.29 | 42.07 | 40.68 | 47.33 | 40.68 | ||||||||||||||
| Pre-tax net income to total revenue (net) (A/(B+C)) | 52.48 | 54.94 | 56.50 | 60.42 | 62.32 | 52.48 | 62.32 | ||||||||||||||
| Pre-tax, pre-provision, net income (PPNR) (B+C-D) | $ | 84,921 | $ | 93,934 | $ | 98,201 | $ | 99,390 | $ | 120,498 | $ | 84,921 | $ | 120,498 | |||||||
| P5NR (Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C) | 52.48 | % | 54.94 | % | 56.50 | % | 57.66 | % | 62.32 | % | 52.48 | % | 62.32 | % | |||||||
| Pre-tax net income (A) | $ | 84,921 | $ | 93,934 | $ | 98,201 | $ | 104,142 | $ | 120,498 | $ | 84,921 | $ | 120,498 | |||||||
| Net interest income (B) | 131,148 | 139,020 | 144,611 | 141,252 | 148,088 | 131,148 | 148,088 | ||||||||||||||
| Non-interest income (C) | 30,669 | 31,964 | 29,209 | 31,120 | 45,276 | 30,669 | 45,276 | ||||||||||||||
| Non-interest expense (D) | 76,896 | 77,050 | 75,619 | 72,982 | 72,866 | 76,896 | 72,866 | ||||||||||||||
| Fully taxable equivalent adjustment (E) | 1,738 | 1,736 | 1,748 | 1,774 | 1,821 | 1,738 | 1,821 | ||||||||||||||
| Amortization of intangibles (F) | 1,421 | 1,420 | 1,421 | 1,421 | 1,421 | 1,421 | 1,421 | ||||||||||||||
| Adjustments: | |||||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||
| Fair value adjustment for marketable securities | $ | 2,125 | $ | 85 | $ | 61 | $ | 1,250 | $ | 5,782 | $ | 2,125 | $ | 5,782 | |||||||
| Gain on OREO | 478 | 737 | 246 | 619 | 401 | 478 | 401 | ||||||||||||||
| Gain (loss) on branches, equipment and other assets, net | 16 | (19) | (34) | (23) | (29) | 16 | (29) | ||||||||||||||
| Special dividend from equity investment | — | — | 2,227 | 2,200 | 8,073 | — | 8,073 | ||||||||||||||
| Gain on securities | — | — | — | — | 219 | — | 219 | ||||||||||||||
| Recoveries on historic losses | 3,288 | — | — | — | 5,107 | 3,288 | 5,107 | ||||||||||||||
| Total non-interest income adjustments (G) | $ | 5,907 | $ | 803 | $ | 2,500 | $ | 4,046 | $ | 19,553 | $ | 5,907 | $ | 19,553 | |||||||
| Non-interest expense: | |||||||||||||||||||||
| Merger and acquisition expenses | 863 | 880 | 1,006 | — | — | 863 | — | ||||||||||||||
| Total non-interest expense adjustments (H) | $ | 863 | $ | 880 | $ | 1,006 | $ | — | $ | — | $ | 863 | $ | — |
Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Three Months Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | Mar 31,<br>2022 | Dec 31,<br>2021 | Sep 30,<br>2021 | Jun 30,<br>2021 | Mar 31,<br>2021 | Mar 31,<br>2022 | Mar 31,<br>2021 | ||||||||||||||
| ANNUALIZED NET INTEREST MARGIN | |||||||||||||||||||||
| Net interest margin: (A/C) | 3.21 | % | 3.42 | % | 3.60 | % | 3.61 | % | 4.02 | % | 3.21 | % | 4.02 | % | |||||||
| Net interest margin, excluding PPP loans:(B/D) | 3.17 | 3.32 | 3.43 | 3.54 | 3.86 | 3.17 | 3.86 | ||||||||||||||
| Net interest income - FTE (A) | $ | 132,886 | $ | 140,756 | $ | 146,359 | $ | 143,026 | $ | 149,909 | $ | 132,886 | $ | 149,909 | |||||||
| PPP loan interest & discount accretion income | 2,196 | 5,786 | 10,162 | 7,802 | 11,878 | 2,196 | 11,878 | ||||||||||||||
| Net interest income - FTE, excluding PPP loans (B) | $ | 130,690 | $ | 134,970 | $ | 136,197 | $ | 135,224 | $ | 138,031 | $ | 130,690 | $ | 138,031 | |||||||
| Average interest-earning assets (C) | $ | 16,774,761 | $ | 16,308,722 | $ | 16,110,526 | $ | 15,892,519 | $ | 15,118,940 | $ | 16,774,761 | $ | 15,118,940 | |||||||
| Average PPP loans | 78,008 | 162,969 | 371,523 | 581,371 | 633,790 | 78,008 | 633,790 | ||||||||||||||
| Average interest-earning assets, excluding PPP loans (D) | $ | 16,696,753 | $ | 16,145,753 | $ | 15,739,003 | $ | 15,311,148 | $ | 14,485,150 | $ | 16,696,753 | $ | 14,485,150 | |||||||
| Quarter Ended | |||||||||||||||||||||
| Mar 31,<br>2022 | Dec 31,<br>2021 | Sep 30,<br>2021 | Jun 30,<br>2021 | Mar 31,<br>2021 | |||||||||||||||||
| TANGIBLE BOOK VALUE PER COMMON SHARE | |||||||||||||||||||||
| Book value per common share: (A/B) | $ | 16.41 | $ | 16.90 | $ | 16.68 | $ | 16.39 | $ | 16.02 | |||||||||||
| Tangible book value per common share: ((A-C-D)/B) | 10.32 | 10.80 | 10.59 | 10.31 | 9.95 | ||||||||||||||||
| Total stockholders' equity (A) | $ | 2,686,703 | $ | 2,765,721 | $ | 2,736,062 | $ | 2,696,189 | $ | 2,645,204 | |||||||||||
| End of period common shares outstanding (B) | 163,758 | 163,699 | 164,008 | 164,488 | 165,141 | ||||||||||||||||
| Goodwill (C) | 973,025 | 973,025 | 973,025 | 973,025 | 973,025 | ||||||||||||||||
| Core deposit and other intangibles <br> (D) | 23,624 | 25,045 | 26,466 | 27,886 | 29,307 | ||||||||||||||||
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | |||||||||||||||||||||
| Equity to assets: (B/A) | 14.43 | % | 15.32 | % | 15.40 | % | 15.30 | % | 15.34 | % | |||||||||||
| Tangible common equity to tangible assets: ((B-C-D)/(A-C-D)) | 9.59 | 10.36 | 10.36 | 10.20 | 10.12 | ||||||||||||||||
| Total assets (A) | $ | 18,617,995 | $ | 18,052,138 | $ | 17,765,056 | $ | 17,627,192 | $ | 17,240,241 | |||||||||||
| Total stockholders' equity (B) | 2,686,703 | 2,765,721 | 2,736,062 | 2,696,189 | 2,645,204 | ||||||||||||||||
| Goodwill (C) | 973,025 | 973,025 | 973,025 | 973,025 | 973,025 | ||||||||||||||||
| Core deposit and other intangibles <br> (D) | 23,624 | 25,045 | 26,466 | 27,886 | 29,307 |