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): October 19, 2023
_________________________________
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 October 19, 2023 press release announcing third quarter 2023 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. AnnouncesThirdQuarter 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: | October 19, 2023 | By: | /s/ Jennifer C. Floyd |
| Jennifer C. Floyd | |||
| Chief Accounting Officer |
Document
EXHIBIT 99.1
| For Immediate Release: | October 19, 2023 |
|---|
HOMB on Track for $400 Million Year
Conway, AR – Home BancShares, Inc. (NYSE: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.
Highlights of the Third Quarter of 2023:
| Metric | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 |
|---|---|---|---|---|---|
| Net income | $98.5 million | $105.3 million | $103.0 million | $115.7 million | $108.7 million |
| Total revenue (net) | $245.4 million | $257.2 million | $248.8 million | $272.3 million | $256.3 million |
| Income before income taxes | $129.3 million | $136.9 million | $132.9 million | $148.4 million | $142.0 million |
| Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) | $130.6 million | $140.9 million | $134.1 million | $153.4 million | $142.0 million |
| Pre-tax net income to total revenue (net) | 52.70% | 53.23% | 53.43% | 54.50% | 55.39% |
| P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) | 53.23% | 54.78% | 53.91% | 56.34% | 55.39% |
| ROA | 1.78% | 1.90% | 1.84% | 1.98% | 1.81% |
| NIM | 4.19% | 4.28% | 4.37% | 4.21% | 4.05% |
| Purchase accounting accretion | $2.4 million | $2.7 million | $3.2 million | $3.5 million | $4.6 million |
| ROE | 10.65% | 11.63% | 11.70% | 13.29% | 12.25% |
| ROTCE (non-GAAP)(1) | 17.62% | 19.39% | 19.75% | 22.96% | 20.93% |
| Diluted earnings per share | $0.49 | $0.52 | $0.51 | $0.57 | $0.53 |
| Non-performing assets to total assets | 0.42% | 0.28% | 0.33% | 0.27% | 0.27% |
| Common equity tier 1 capital | 14.0% | 13.6% | 13.2% | 12.9% | 13.0% |
| Leverage | 12.4% | 11.9% | 11.4% | 10.9% | 10.4% |
| Tier 1 capital | 14.0% | 13.6% | 13.2% | 12.9% | 13.0% |
| Total risk-based capital | 17.6% | 17.3% | 16.8% | 16.5% | 16.7% |
| Allowance for credit losses to total loans | 2.00% | 2.01% | 2.00% | 2.01% | 2.09% |
| Book value per share | $18.06 | $18.04 | $17.87 | $17.33 | $16.94 |
| Tangible book value per share (non-GAAP)(1) | 10.90 | 10.87 | 10.71 | 10.17 | 9.82 |
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
“In the past 12 months, we have paid out $143.3 million in dividends, have repurchased 2,250,900 shares of stock for $51.0 million and have taken an additional mark to the available-for-sale portfolio of $43.1 million and were still able to grow tangible book value(1) by 11.1% from $9.82 per share to $10.90 per share. This feat deserves a shout out to all our people for an outstanding job during a tough economy,” said John Allison, Chairman and CEO of HOMB.
“We are continuing to build on our fortress balance sheet with both peer leading reserves and capital,” said Tracy French, President and CEO of Centennial Bank.
Liquidity and Funding Sources
At September 30, 2023, the Company held $1.78 billion in net available internal liquidity. This balance consisted of $1.38 billion in unpledged investment securities which could be used for additional secured borrowing capacity, $228.1 million in cash with the Federal Reserve Bank (FRB) and $172.7 million in other liquid cash accounts.
Consistent with the Company’s practice of maintaining access to significant external liquidity, the Company had $4.33 billion in net available external liquidity as of September 30, 2023. This included $5.09 billion in available liquidity with the Federal Home Loan Bank (FHLB), of which $2.00 billion has been drawn upon in the ordinary course of business, resulting in $3.09 billion in net available liquidity with the FHLB as of September 30, 2023. The $2.00 billion consisted of $750.0 million in outstanding FHLB advances and $1.25 billion used for pledging purposes. The Company also had access to approximately $1.39 billion in liquidity with the FRB as of September 30, 2023, of which $250.0 million has been drawn upon in the ordinary course of business, resulting in $1.14 billion in net available liquidity with the FRB as of September 30, 2023. The $1.14 billion consisted of $80.9 million available from the Discount Window and $1.06 billion available through the Bank Term Funding Program (BTFP). As of September 30, 2023, the Company also had access to $55.0 million from First National Bankers’ Bank (FNBB) and $45.0 million from other various external sources.
Overall, the Company had $6.12 billion net available liquidity as of September 30, 2023, which consisted of $1.78 billion of net available internal liquidity and $4.33 billion in net available external liquidity. Details on the Company’s available liquidity as of September 30, 2023 is available below.
| (in thousands) | Total Available | Amount Used | Net Availability | |||
|---|---|---|---|---|---|---|
| Internal Sources | ||||||
| Unpledged investment securities (market value) | $ | 1,382,775 | $ | — | $ | 1,382,775 |
| Cash at FRB | 228,114 | — | 228,114 | |||
| Other liquid cash accounts | 172,708 | — | 172,708 | |||
| Total Internal Liquidity | 1,783,597 | — | 1,783,597 | |||
| External Sources | ||||||
| FHLB | 5,089,340 | 1,995,990 | 3,093,350 | |||
| FRB Discount Window | 80,919 | — | 80,919 | |||
| BTFP (par value) | 1,309,205 | 250,000 | 1,059,205 | |||
| FNBB | 55,000 | — | 55,000 | |||
| Other | 45,000 | — | 45,000 | |||
| Total External Liquidity | 6,579,464 | 2,245,990 | 4,333,474 | |||
| Total Available Liquidity | $ | 8,363,061 | $ | 2,245,990 | $ | 6,117,071 |
The Company has continued to limit its exposure to uninsured deposits and has been actively monitoring this in light of the current banking environment. As of September 30, 2023, the Company held approximately $7.95 billion in uninsured deposits of which $568.5 million were intercompany subsidiary deposit balances and $2.65 billion were collateralized deposits, for a net position of $4.73 billion. This represents approximately 28.7% of total deposits. In addition, net available liquidity exceeded uninsured and uncollateralized deposits by $1.38 billion.
| (in thousands) | As of<br>September 30, 2023 | |
|---|---|---|
| Uninsured Deposits | $ | 7,952,922 |
| Intercompany Subsidiary and Affiliate Balances | 568,511 | |
| Collateralized Deposits | 2,650,369 | |
| Net Uninsured Position | $ | 4,734,042 |
| Total Available Liquidity | $ | 6,117,071 |
| Net Uninsured Position | 4,734,042 | |
| Net Available Liquidity in Excess of Uninsured Deposits | $ | 1,383,029 |
In the event the Company’s $4.73 billion net position of uninsured deposits had been called by depositors on the first day of the third quarter of 2023 and the Company utilized available BTFP funding, which remained outstanding during the entire quarter, the Company estimates that interest expense would have increased by approximately $65.5 million for the period ended September 30, 2023. The outflow of deposits could have been funded through available sources of liquidity without selling our investment securities. In this event, because of the high profitability levels of HOMB, the Company estimates that it would still have achieved return on average assets (ROA) of 1.20% for the period ended September 30, 2023.
Operating Highlights
Net income for the three-month period ended September 30, 2023 was $98.5 million, or $0.49 diluted earnings per share. When adjusting for non-fundamental items, net income and diluted earnings per share on an as-adjusted basis (non-GAAP), were $94.7 million(1), and $0.47 per share(1), respectively, for the three months ended September 30, 2023.
Our net interest margin was 4.19% for the three-month period ended September 30, 2023, compared to 4.28% for the three-month period ended June 30, 2023. The yield on loans was 6.98% and 6.84% for the three months ended September 30, 2023 and June 30, 2023, respectively, as average loans decreased from $14.26 billion to $14.19 billion. Additionally, the rate on interest bearing deposits increased to 2.55% as of September 30, 2023, from 2.27% as of June 30, 2023, while average interest-bearing balances decreased from $12.42 billion to $12.24 billion.
During the third quarter of 2023, there was $521,000 of event interest expense compared to event interest income of $1.3 million for the second quarter of 2023.
Purchase accounting accretion on acquired loans was $2.4 million and $2.7 million and average purchase accounting loan discounts were $29.9 million and $32.5 million for the three-month periods ended September 30, 2023 and June 30, 2023, respectively.
Net interest income on a fully taxable equivalent basis was $203.2 million for the three-month period ended September 30, 2023, and $209.1 million for the three-month period ended June 30, 2023. This reduction in net interest income for the three-month period ended September 30, 2023, was the result of a $10.3 million increase in interest expense, partially offset by a $4.4 million increase in interest income. The $10.3 million increase in interest expense was due to an $8.6 million increase in interest expense on deposits, a $1.6 million increase in interest expense on FHLB and other borrowed funds and a $223,000 increase in interest expense on securities sold under agreement to repurchase. The increase in interest expense is a result of the current high interest rate environment. The $4.4 million increase in interest income was primarily the result of a $6.3 million increase in loan interest income, partially offset by a $1.4 million decrease in income from interest-bearing balances due from banks and a $529,000 decrease in investment income. The increase in interest income is also a result of the current high interest rate environment.
The Company reported $43.4 million of non-interest income for the third quarter of 2023. The most important components of third quarter non-interest income were $10.1 million from other service charges and fees, $10.1 million from service charges on deposit accounts, $6.2 million from other income, $4.7 million from trust fees, $4.5 million from the fair value adjustment for marketable securities, $3.1 million in mortgage lending income, $2.9 million from dividends from FHLB, FRB, FNBB and other and $1.2 million from the increase in cash value of life insurance. The $6.2 million in other income includes $338,000 in non-taxable bank owned life insurance “BOLI” death benefit income.
Non-interest expense for the third quarter of 2023 was $114.8 million. The most important components of non-interest expense were $64.5 million from salaries and employee benefits, $25.7 million in other operating expense, $15.5 million in occupancy and equipment expenses and $9.1 million in data processing expenses. For the third quarter of 2023, our efficiency ratio was 45.53%, and our efficiency ratio, as adjusted (non-GAAP), was 46.44%(1).
Financial Condition
Total loans receivable were $14.27 billion at September 30, 2023, compared to $14.18 billion at June 30, 2023. Total deposits were $16.52 billion at September 30, 2023, compared to $17.00 billion at June 30, 2023. Total assets were $21.95 billion at September 30, 2023, compared to $22.13 billion at June 30, 2023.
During the third quarter of 2023, the Company experienced approximately $90.9 million in loan growth. Centennial CFG experienced $145.3 million of organic loan growth and had loans of $2.01 billion at September 30, 2023. Our remaining markets experienced $54.4 million in organic loan decline during the quarter.
Non-performing loans to total loans was 0.64% and 0.43% at September 30, 2023 and June 30, 2023, respectively. Non-performing assets to total assets was 0.42% and 0.28% at September 30, 2023 and June 30, 2023, respectively. Net charge-offs were $2.9 million and $3.8 million for the three months ended September 30, 2023 and June 30, 2023, respectively.
Non-performing loans at September 30, 2023 were $12.6 million, $17.3 million, $27.2 million, $372,000, $3.0 million and $30.4 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $90.9 million. Non-performing assets at September 30, 2023 were $12.8 million, $17.5 million, $27.5 million, $372,000, $3.0 million and $30.4 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $91.6 million.
The Company’s allowance for credit losses on loans was $285.6 million at September 30, 2023, or 2.00% of total loans, compared to the allowance for credit losses on loans of $285.7 million, or 2.01% of total loans, at June 30, 2023. As of September 30, 2023 and June 30, 2023, the Company’s allowance for credit losses on loans was 314.29% and 472.23% of its total non-performing loans, respectively.
Stockholders’ equity was $3.65 billion at September 30, 2023, compared to $3.65 billion at June 30, 2023, an increase of approximately $0.8 million. The increase in stockholders’ equity is primarily associated with the $62.0 million increase in retained earnings, partially offset by the $57.9 million increase in accumulated other comprehensive loss and $5.7 million in stock repurchases. Book value per common share was $18.06 at September 30, 2023, compared to $18.04 at June 30, 2023. Tangible book value per common share (non-GAAP) was $10.90(1) at September 30, 2023, compared to $10.87(1) at June 30, 2023.
Branches
The Company currently has 76 branches in Arkansas, 78 branches in Florida, 63 branches in Texas, 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 p.m. ET) on Thursday, October 19, 2023. 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/682811524. 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.netroadshow.com/events/login?show=353e41be&confId=55500. 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 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 1-833-470-1428, Passcode: 488667. A replay of the call will be available by calling 1-866-813-9403, Passcode: 746951, which will be available until October 26, 2023, 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.
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
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); PPNR, as adjusted; pre-tax net income, as adjusted, to total revenue (net); pre-tax, pre-provision, profit percentage; pre-tax, pre-provision, profit percentage, as adjusted; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets excluding intangible amortization; return on average assets, as adjusted, excluding intangible amortization; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity, as adjusted; return on average tangible common equity excluding intangible amortization; return on average tangible common equity, as adjusted, excluding intangible amortization; efficiency ratio, as adjusted; 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 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 contains forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future, including future financial results. 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 or phrases like “may,” “plan,” “propose,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,” “would,” “on track” 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 risks 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, including the ongoing impacts of inflation; disruptions, uncertainties and related effects on our business and operations that may result from any future outbreaks of the COVID-19 pandemic, including the impact on, among other things, credit quality and liquidity; the ability to identify, complete and successfully integrate new acquisitions; the risk that expected cost savings and other benefits from acquisitions may not be fully realized or may take longer to realize than expected; diversion of management time on acquisition-related issues; the availability of and access to capital and liquidity on terms acceptable to us; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations; technological changes and cybersecurity risks and incidents; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability, military conflicts and other major domestic or international events; adverse weather events, including hurricanes, and other natural disasters; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; potential increases in deposit insurance assessments, increased regulatory scrutiny or market disruptions resulting from financial challenges in the banking industry; 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, 2022, filed with the SEC on February 24, 2023.
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) | Sep 30,<br>2023 | Jun 30,<br>2023 | Mar 31,<br>2023 | Dec 31,<br>2022 | Sep 30,<br>2022 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||||
| Cash and due from banks | $ | 229,474 | $ | 275,656 | $ | 250,841 | $ | 263,893 | $ | 268,929 |
| Interest-bearing deposits with other banks | 258,605 | 335,535 | 437,213 | 460,897 | 1,311,492 | |||||
| Cash and cash equivalents | 488,079 | 611,191 | 688,054 | 724,790 | 1,580,421 | |||||
| Federal funds sold | 3,925 | 1,550 | — | — | 2,700 | |||||
| Investment securities - available-for-sale, <br> net of allowance for credit losses | 3,472,173 | 3,645,013 | 3,772,138 | 4,041,590 | 4,085,102 | |||||
| Investment securities - held-to-maturity, <br> net of allowance for credit losses | 1,283,475 | 1,285,150 | 1,286,373 | 1,287,705 | 1,251,007 | |||||
| Total investment securities | 4,755,648 | 4,930,163 | 5,058,511 | 5,329,295 | 5,336,109 | |||||
| Loans receivable | 14,271,833 | 14,180,972 | 14,386,634 | 14,409,480 | 13,829,311 | |||||
| Allowance for credit losses | (285,562) | (285,683) | (287,169) | (289,669) | (289,203) | |||||
| Loans receivable, net | 13,986,271 | 13,895,289 | 14,099,465 | 14,119,811 | 13,540,108 | |||||
| Bank premises and equipment, net | 397,093 | 397,315 | 402,094 | 405,073 | 411,479 | |||||
| Foreclosed assets held for sale | 691 | 725 | 425 | 546 | 365 | |||||
| Cash value of life insurance | 213,351 | 213,090 | 214,792 | 213,693 | 212,619 | |||||
| Accrued interest receivable | 110,946 | 101,066 | 102,740 | 103,199 | 88,671 | |||||
| Deferred tax asset, net | 222,741 | 206,430 | 193,334 | 209,321 | 228,979 | |||||
| Goodwill | 1,398,253 | 1,398,253 | 1,398,253 | 1,398,253 | 1,394,353 | |||||
| Core deposit intangible | 51,023 | 53,500 | 55,978 | 58,455 | 60,932 | |||||
| Other assets | 322,617 | 317,857 | 304,609 | 321,152 | 300,634 | |||||
| Total assets | $ | 21,950,638 | $ | 22,126,429 | $ | 22,518,255 | $ | 22,883,588 | $ | 23,157,370 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Deposits: | ||||||||||
| Demand and non-interest-bearing | $ | 4,280,429 | $ | 4,598,593 | $ | 4,945,729 | $ | 5,164,997 | $ | 5,540,539 |
| Savings and interest-bearing transaction <br>accounts | 10,786,087 | 11,169,940 | 11,392,566 | 11,730,552 | 11,968,519 | |||||
| Time deposits | 1,452,229 | 1,228,358 | 1,107,171 | 1,043,234 | 1,033,266 | |||||
| Total deposits | 16,518,745 | 16,996,891 | 17,445,466 | 17,938,783 | 18,542,324 | |||||
| Securities sold under agreements to repurchase | 160,120 | 160,349 | 138,742 | 131,146 | 121,555 | |||||
| FHLB and other borrowed funds | 1,001,550 | 701,550 | 650,000 | 650,000 | 400,000 | |||||
| Accrued interest payable and other liabilities | 175,367 | 173,426 | 212,887 | 196,877 | 192,908 | |||||
| Subordinated debentures | 439,982 | 440,129 | 440,275 | 440,420 | 440,568 | |||||
| Total liabilities | 18,295,764 | 18,472,345 | 18,887,370 | 19,357,226 | 19,697,355 | |||||
| Stockholders' equity | ||||||||||
| Common stock | 2,023 | 2,026 | 2,032 | 2,034 | 2,042 | |||||
| Capital surplus | 2,363,210 | 2,366,560 | 2,375,754 | 2,386,699 | 2,404,388 | |||||
| Retained earnings | 1,640,171 | 1,578,176 | 1,509,400 | 1,443,087 | 1,361,040 | |||||
| Accumulated other comprehensive loss | (350,530) | (292,678) | (256,301) | (305,458) | (307,455) | |||||
| Total stockholders' equity | 3,654,874 | 3,654,084 | 3,630,885 | 3,526,362 | 3,460,015 | |||||
| Total liabilities and stockholders' equity | $ | 21,950,638 | $ | 22,126,429 | $ | 22,518,255 | $ | 22,883,588 | $ | 23,157,370 |
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
| Quarter Ended | Nine Months Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In thousands) | Sep 30,<br>2023 | Jun 30,<br>2023 | Mar 31,<br>2023 | Dec 31,<br>2022 | Sep 30,<br>2022 | Sep 30,<br>2023 | Sep 30,<br>2022 | |||||||
| Interest income: | ||||||||||||||
| Loans | $ | 249,464 | $ | 243,152 | $ | 236,997 | $ | 221,280 | $ | 195,841 | $ | 729,613 | $ | 507,062 |
| Investment securities | ||||||||||||||
| Taxable | 34,520 | 34,751 | 35,288 | 33,639 | 28,273 | 104,559 | 58,294 | |||||||
| Tax-exempt | 7,868 | 7,932 | 7,963 | 7,855 | 8,069 | 23,763 | 20,501 | |||||||
| Deposits - other banks | 2,328 | 3,729 | 4,685 | 10,109 | 10,763 | 10,742 | 19,001 | |||||||
| Federal funds sold | 82 | 68 | 6 | 12 | 9 | 156 | 13 | |||||||
| Total interest income | 294,262 | 289,632 | 284,939 | 272,895 | 242,955 | 868,833 | 604,871 | |||||||
| Interest expense: | ||||||||||||||
| Interest on deposits | 78,698 | 70,147 | 59,162 | 47,019 | 23,347 | 208,007 | 38,970 | |||||||
| Federal funds purchased | 1 | 2 | — | — | — | 3 | 2 | |||||||
| FHLB and other borrowed funds | 8,161 | 6,596 | 6,190 | 5,388 | 1,917 | 20,947 | 5,688 | |||||||
| Securities sold under agreements to <br>repurchase | 1,344 | 1,121 | 868 | 701 | 434 | 3,333 | 729 | |||||||
| Subordinated debentures | 4,121 | 4,123 | 4,124 | 4,121 | 4,153 | 12,368 | 16,472 | |||||||
| Total interest expense | 92,325 | 81,989 | 70,344 | 57,229 | 29,851 | 244,658 | 61,861 | |||||||
| Net interest income | 201,937 | 207,643 | 214,595 | 215,666 | 213,104 | 624,175 | 543,010 | |||||||
| Provision for credit losses on loans | 2,800 | 2,300 | 1,200 | 5,000 | — | 6,300 | 45,170 | |||||||
| (Recovery of) provision for credit losses on <br>unfunded commitments | (1,500) | — | — | — | — | (1,500) | 11,410 | |||||||
| Provision for credit losses on investment <br>securities | — | 1,683 | — | — | — | 1,683 | 2,005 | |||||||
| Total credit loss expense | 1,300 | 3,983 | 1,200 | 5,000 | — | 6,483 | 58,585 | |||||||
| Net interest income after credit loss expense | 200,637 | 203,660 | 213,395 | 210,666 | 213,104 | 617,692 | 484,425 | |||||||
| Non-interest income: | ||||||||||||||
| Service charges on deposit accounts | 10,062 | 9,231 | 9,842 | 10,134 | 10,756 | 29,135 | 26,980 | |||||||
| Other service charges and fees | 10,128 | 11,763 | 11,875 | 10,363 | 13,951 | 33,766 | 34,225 | |||||||
| Trust fees | 4,660 | 4,052 | 4,864 | 3,981 | 3,980 | 13,576 | 8,874 | |||||||
| Mortgage lending income | 3,132 | 2,650 | 2,571 | 3,566 | 4,179 | 8,353 | 14,091 | |||||||
| Insurance commissions | 562 | 518 | 526 | 453 | 601 | 1,606 | 1,739 | |||||||
| Increase in cash value of life insurance | 1,170 | 1,211 | 1,104 | 1,079 | 1,089 | 3,485 | 2,721 | |||||||
| Dividends from FHLB, FRB, FNBB & other | 2,916 | 2,922 | 2,794 | 2,814 | 1,741 | 8,632 | 6,384 | |||||||
| Gain on SBA loans | 97 | — | 139 | 30 | 58 | 236 | 153 | |||||||
| Gain (loss) on branches, equipment and other <br> assets, net | — | 917 | 7 | 10 | (13) | 924 | 5 | |||||||
| Gain on OREO, net | — | 319 | — | 13 | — | 319 | 487 | |||||||
| Fair value adjustment for marketable <br>securities | 4,507 | 783 | (11,408) | 1,032 | (2,628) | (6,118) | (2,304) | |||||||
| Other income | 6,179 | 15,143 | 11,850 | 23,185 | 9,487 | 33,172 | 25,096 | |||||||
| Total non-interest income | 43,413 | 49,509 | 34,164 | 56,660 | 43,201 | 127,086 | 118,451 | |||||||
| Non-interest expense: | ||||||||||||||
| Salaries and employee benefits | 64,512 | 64,534 | 64,490 | 64,249 | 65,290 | 193,536 | 174,636 | |||||||
| Occupancy and equipment | 15,463 | 14,923 | 14,952 | 14,884 | 15,133 | 45,338 | 38,533 | |||||||
| Data processing expense | 9,103 | 9,151 | 8,968 | 9,062 | 8,747 | 27,222 | 25,880 | |||||||
| Merger and acquisition expenses | — | — | — | — | — | — | 49,594 | |||||||
| Other operating expenses | 25,684 | 27,674 | 26,234 | 30,708 | 25,176 | 79,592 | 68,081 | |||||||
| Total non-interest expense | 114,762 | 116,282 | 114,644 | 118,903 | 114,346 | 345,688 | 356,724 | |||||||
| Income before income taxes | 129,288 | 136,887 | 132,915 | 148,423 | 141,959 | 399,090 | 246,152 | |||||||
| Income tax expense | 30,835 | 31,616 | 29,953 | 32,736 | 33,254 | 92,404 | 56,577 | |||||||
| Net income | $ | 98,453 | $ | 105,271 | $ | 102,962 | $ | 115,687 | $ | 108,705 | $ | 306,686 | $ | 189,575 |
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars and shares in thousands, except per share data) | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||
| PER SHARE DATA | |||||||||||||||||||||
| Diluted earnings per common share | $ | 0.49 | $ | 0.52 | $ | 0.51 | $ | 0.57 | $ | 0.53 | $ | 1.51 | $ | 0.99 | |||||||
| Diluted earnings per common share, as adjusted<br><br>(non-GAAP)(1) | 0.47 | 0.51 | 0.54 | 0.53 | 0.54 | 1.51 | 1.40 | ||||||||||||||
| Basic earnings per common share | 0.49 | 0.52 | 0.51 | 0.57 | 0.53 | 1.51 | 0.99 | ||||||||||||||
| Dividends per share - common | 0.18 | 0.18 | 0.18 | 0.165 | 0.165 | 0.54 | 0.495 | ||||||||||||||
| Book value per common share | 18.06 | 18.04 | 17.87 | 17.33 | 16.94 | 18.06 | 16.94 | ||||||||||||||
| Tangible book value per common share<br><br>(non-GAAP)(1) | 10.90 | 10.87 | 10.71 | 10.17 | 9.82 | 10.90 | 9.82 | ||||||||||||||
| STOCK INFORMATION | |||||||||||||||||||||
| Average common shares outstanding | 202,526 | 202,793 | 203,456 | 203,924 | 204,829 | 202,921 | 191,584 | ||||||||||||||
| Average diluted shares outstanding | 202,650 | 202,923 | 203,625 | 204,179 | 205,135 | 203,068 | 191,941 | ||||||||||||||
| End of period common shares outstanding | 202,323 | 202,573 | 203,168 | 203,434 | 204,219 | 202,323 | 204,219 | ||||||||||||||
| ANNUALIZED PERFORMANCE METRICS | |||||||||||||||||||||
| Return on average assets (ROA) | 1.78 | % | 1.90 | % | 1.84 | % | 1.98 | % | 1.81 | % | 1.84 | % | 1.13 | % | |||||||
| Return on average assets, as adjusted:<br><br>(ROA, as adjusted) (non-GAAP)(1) | 1.72 | 1.85 | 1.95 | 1.84 | 1.83 | 1.84 | 1.61 | ||||||||||||||
| Return on average assets excluding intangible<br><br>amortization (non-GAAP)(1) | 1.95 | 2.07 | 2.00 | 2.15 | 1.97 | 2.01 | 1.23 | ||||||||||||||
| Return on average assets, as adjusted, excluding<br><br>intangible amortization (non-GAAP)(1) | 1.87 | 2.02 | 2.12 | 2.00 | 1.99 | 2.00 | 1.74 | ||||||||||||||
| Return on average common equity (ROE) | 10.65 | 11.63 | 11.70 | 13.29 | 12.25 | 11.32 | 7.71 | ||||||||||||||
| Return on average common equity, as adjusted:<br><br>(ROE, as adjusted) (non-GAAP)(1) | 10.25 | 11.33 | 12.38 | 12.35 | 12.39 | 11.30 | 10.91 | ||||||||||||||
| Return on average tangible common equity<br><br>(ROTCE) (non-GAAP)(1) | 17.62 | 19.39 | 19.75 | 22.96 | 20.93 | 18.90 | 12.71 | ||||||||||||||
| Return on average tangible common equity, as adjusted:<br><br>(ROTCE, as adjusted) (non-GAAP)(1) | 16.95 | 18.90 | 20.90 | 21.33 | 21.16 | 18.87 | 18.00 | ||||||||||||||
| Return on average tangible common equity excluding<br><br>intangible amortization (non-GAAP)(1) | 17.95 | 19.74 | 20.11 | 23.33 | 21.29 | 19.24 | 13.03 | ||||||||||||||
| Return on average tangible common equity, as adjusted,<br><br>excluding intangible amortization (non-GAAP)(1) | 17.29 | 19.24 | 21.26 | 21.70 | 21.52 | 19.22 | 18.32 |
(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 | Nine Months Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||
| Efficiency ratio | 45.53 | % | 44.00 | % | 44.80 | % | 42.44 | % | 43.24 | % | 44.76 | % | 52.44 | % | |||||||
| Efficiency ratio, as adjusted (non-GAAP)(1) | 46.44 | 44.83 | 43.42 | 43.07 | 42.97 | 44.86 | 45.13 | ||||||||||||||
| Net interest margin - FTE (NIM) | 4.19 | 4.28 | 4.37 | 4.21 | 4.05 | 4.28 | 3.67 | ||||||||||||||
| Fully taxable equivalent adjustment | $ | 1,293 | $ | 1,494 | $ | 1,628 | $ | 2,017 | $ | 2,437 | $ | 4,415 | $ | 6,646 | |||||||
| Total revenue (net) | 245,350 | 257,152 | 248,759 | 272,326 | 256,305 | 751,261 | 661,461 | ||||||||||||||
| Pre-tax, pre-provision, net income (PPNR)<br><br>(non-GAAP)(1) | 130,588 | 140,870 | 134,115 | 153,423 | 141,959 | 405,573 | 304,737 | ||||||||||||||
| PPNR, as adjusted (non-GAAP)(1) | 125,743 | 137,308 | 142,062 | 142,567 | 143,522 | 405,113 | 350,576 | ||||||||||||||
| Pre-tax net income to total revenue (net) | 52.70 | % | 53.23 | % | 53.43 | % | 54.50 | % | 55.39 | % | 53.12 | % | 37.21 | % | |||||||
| Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1) | 50.72 | 51.85 | 56.63 | 50.52 | 56.00 | 53.06 | 53.00 | ||||||||||||||
| P5NR ((Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) | 53.23 | 54.78 | 53.91 | 56.34 | 55.39 | 53.99 | 46.07 | ||||||||||||||
| P5NR, as adjusted (non-GAAP)(1) | 51.25 | 53.40 | 57.11 | 52.35 | 56.00 | 53.92 | 53.00 | ||||||||||||||
| Total purchase accounting accretion | $ | 2,431 | $ | 2,660 | $ | 3,172 | $ | 3,497 | $ | 4,578 | $ | 8,263 | $ | 12,844 | |||||||
| Average purchase accounting loan discounts | 29,915 | 32,546 | 35,482 | 38,552 | 42,050 | 32,656 | 37,889 | ||||||||||||||
| OTHER OPERATING EXPENSES | |||||||||||||||||||||
| Hurricane expense | $ | — | $ | — | $ | — | $ | 176 | $ | — | $ | — | $ | — | |||||||
| Advertising | 2,295 | 2,098 | 2,231 | 2,567 | 2,024 | 6,624 | 5,407 | ||||||||||||||
| Amortization of intangibles | 2,477 | 2,478 | 2,477 | 2,478 | 2,477 | 7,432 | 6,376 | ||||||||||||||
| Electronic banking expense | 3,709 | 3,675 | 3,330 | 3,914 | 3,828 | 10,714 | 9,718 | ||||||||||||||
| Directors' fees | 417 | 538 | 460 | 358 | 354 | 1,415 | 1,133 | ||||||||||||||
| Due from bank service charges | 282 | 286 | 273 | 273 | 316 | 841 | 982 | ||||||||||||||
| FDIC and state assessment | 2,794 | 3,220 | 3,500 | 2,224 | 2,146 | 9,514 | 6,204 | ||||||||||||||
| Insurance | 878 | 927 | 889 | 1,003 | 959 | 2,694 | 2,702 | ||||||||||||||
| Legal and accounting | 1,514 | 1,436 | 1,088 | 5,962 | 1,581 | 4,038 | 3,439 | ||||||||||||||
| Other professional fees | 2,117 | 2,774 | 2,284 | 2,552 | 2,466 | 7,175 | 6,329 | ||||||||||||||
| Operating supplies | 860 | 763 | 738 | 690 | 681 | 2,361 | 2,430 | ||||||||||||||
| Postage | 491 | 586 | 501 | 602 | 614 | 1,578 | 1,476 | ||||||||||||||
| Telephone | 544 | 573 | 528 | 576 | 593 | 1,645 | 1,314 | ||||||||||||||
| Other expense | 7,306 | 8,320 | 7,935 | 7,333 | 7,137 | 23,561 | 20,571 | ||||||||||||||
| Total other operating expenses | $ | 25,684 | $ | 27,674 | $ | 26,234 | $ | 30,708 | $ | 25,176 | $ | 79,592 | $ | 68,081 |
(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) | Sep 30,<br>2023 | Jun 30,<br>2023 | Mar 31,<br>2023 | Dec 31,<br>2022 | Sep 30,<br>2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BALANCE SHEET RATIOS | |||||||||||||||
| Total loans to total deposits | 86.40 | % | 83.43 | % | 82.47 | % | 80.33 | % | 74.58 | % | |||||
| Common equity to assets | 16.65 | 16.51 | 16.12 | 15.41 | 14.94 | ||||||||||
| Tangible common equity to tangible assets<br><br>(non-GAAP)(1) | 10.76 | 10.65 | 10.33 | 9.66 | 9.24 | ||||||||||
| LOANS RECEIVABLE | |||||||||||||||
| Real estate | |||||||||||||||
| Commercial real estate loans | |||||||||||||||
| Non-farm/non-residential | $ | 5,614,259 | $ | 5,480,738 | $ | 5,524,125 | $ | 5,632,063 | $ | 5,156,438 | |||||
| Construction/land development | 2,154,030 | 2,201,514 | 2,160,514 | 2,135,266 | 2,232,906 | ||||||||||
| Agricultural | 336,160 | 340,067 | 342,814 | 346,811 | 330,748 | ||||||||||
| Residential real estate loans | |||||||||||||||
| Residential 1-4 family | 1,808,248 | 1,790,218 | 1,748,231 | 1,748,551 | 1,704,850 | ||||||||||
| Multifamily residential | 444,239 | 455,754 | 637,633 | 578,052 | 525,110 | ||||||||||
| Total real estate | 10,356,936 | 10,268,291 | 10,413,317 | 10,440,743 | 9,950,052 | ||||||||||
| Consumer | 1,153,461 | 1,156,273 | 1,173,325 | 1,149,896 | 1,120,250 | ||||||||||
| Commercial and industrial | 2,195,678 | 2,288,646 | 2,368,428 | 2,349,263 | 2,268,750 | ||||||||||
| Agricultural | 332,608 | 297,743 | 250,851 | 285,235 | 313,693 | ||||||||||
| Other | 233,150 | 170,019 | 180,713 | 184,343 | 176,566 | ||||||||||
| Loans receivable | $ | 14,271,833 | $ | 14,180,972 | $ | 14,386,634 | $ | 14,409,480 | $ | 13,829,311 | |||||
| ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||
| Balance, beginning of period | $ | 285,683 | $ | 287,169 | $ | 289,669 | $ | 289,203 | $ | 294,267 | |||||
| Loans charged off | 3,449 | 4,726 | 4,288 | 5,379 | 6,313 | ||||||||||
| Recoveries of loans previously charged off | 528 | 940 | 588 | 845 | 1,249 | ||||||||||
| Net loans charged off | 2,921 | 3,786 | 3,700 | 4,534 | 5,064 | ||||||||||
| Provision for credit losses - loans | 2,800 | 2,300 | 1,200 | 5,000 | — | ||||||||||
| Balance, end of period | $ | 285,562 | $ | 285,683 | $ | 287,169 | $ | 289,669 | $ | 289,203 | |||||
| Net charge-offs to average total loans | 0.08 | % | 0.11 | % | 0.10 | % | 0.13 | % | 0.15 | % | |||||
| Allowance for credit losses to total loans | 2.00 | 2.01 | 2.00 | 2.01 | 2.09 | ||||||||||
| NON-PERFORMING ASSETS | |||||||||||||||
| Non-performing loans | |||||||||||||||
| Non-accrual loans | $ | 84,184 | $ | 49,627 | $ | 65,401 | $ | 51,011 | $ | 56,796 | |||||
| Loans past due 90 days or more | 6,674 | 10,869 | 8,567 | 9,845 | 4,898 | ||||||||||
| Total non-performing loans | 90,858 | 60,496 | 73,968 | 60,856 | 61,694 | ||||||||||
| Other non-performing assets | |||||||||||||||
| Foreclosed assets held for sale, net | 691 | 725 | 425 | 546 | 365 | ||||||||||
| Other non-performing assets | 64 | 64 | 74 | 74 | 104 | ||||||||||
| Total other non-performing assets | 755 | 789 | 499 | 620 | 469 | ||||||||||
| Total non-performing assets | $ | 91,613 | $ | 61,285 | $ | 74,467 | $ | 61,476 | $ | 62,163 | |||||
| Allowance for credit losses for loans to non-performing loans | 314.29 | % | 472.23 | % | 388.23 | % | 475.99 | % | 468.77 | % | |||||
| Non-performing loans to total loans | 0.64 | 0.43 | 0.51 | 0.42 | 0.45 | ||||||||||
| Non-performing assets to total assets | 0.42 | 0.28 | 0.33 | 0.27 | 0.27 |
(1) Calculation of this metric and the reconciliation to GAAP is included in the schedules accompanying this release.
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
| Three Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2023 | June 30, 2023 | |||||||||||
| (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 | $ | 197,336 | $ | 2,328 | 4.68 | % | $ | 320,039 | $ | 3,729 | 4.67 | % |
| Federal funds sold | 4,859 | 82 | 6.70 | 5,350 | 68 | 5.10 | ||||||
| Investment securities - taxable | 3,598,513 | 34,520 | 3.81 | 3,718,320 | 34,751 | 3.75 | ||||||
| Investment securities - non-taxable - FTE | 1,272,680 | 9,034 | 2.82 | 1,280,781 | 9,332 | 2.92 | ||||||
| Loans receivable - FTE | 14,191,461 | 249,591 | 6.98 | 14,259,647 | 243,246 | 6.84 | ||||||
| Total interest-earning assets | 19,264,849 | 295,555 | 6.09 | 19,584,137 | 291,126 | 5.96 | ||||||
| Non-earning assets | 2,637,585 | 2,643,267 | ||||||||||
| Total assets | $ | 21,902,434 | $ | 22,227,404 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Liabilities | ||||||||||||
| Interest-bearing liabilities | ||||||||||||
| Savings and interest-bearing transaction accounts | $ | 10,923,936 | $ | 68,067 | 2.47 | % | $ | 11,242,988 | $ | 62,637 | 2.23 | % |
| Time deposits | 1,319,126 | 10,631 | 3.20 | 1,174,925 | 7,510 | 2.56 | ||||||
| Total interest-bearing deposits | 12,243,062 | 78,698 | 2.55 | 12,417,913 | 70,147 | 2.27 | ||||||
| Federal funds purchased | 54 | 1 | 7.35 | 123 | 2 | 6.52 | ||||||
| Securities sold under agreement to <br>repurchase | 154,687 | 1,344 | 3.45 | 143,969 | 1,121 | 3.12 | ||||||
| FHLB borrowed funds | 773,345 | 8,161 | 4.19 | 679,445 | 6,596 | 3.89 | ||||||
| Subordinated debentures | 440,054 | 4,121 | 3.72 | 440,201 | 4,123 | 3.76 | ||||||
| Total interest-bearing liabilities | 13,611,202 | 92,325 | 2.69 | 13,681,651 | 81,989 | 2.40 | ||||||
| Non-interest bearing liabilities | ||||||||||||
| Non-interest bearing deposits | 4,434,394 | 4,717,623 | ||||||||||
| Other liabilities | 189,499 | 197,936 | ||||||||||
| Total liabilities | 18,235,095 | 18,597,210 | ||||||||||
| Shareholders' equity | 3,667,339 | 3,630,194 | ||||||||||
| Total liabilities and shareholders' equity | $ | 21,902,434 | $ | 22,227,404 | ||||||||
| Net interest spread | 3.40 | % | 3.56 | % | ||||||||
| Net interest income and margin - FTE | $ | 203,230 | 4.19 | $ | 209,137 | 4.28 |
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
| Nine Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2023 | September 30, 2022 | |||||||||||
| (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 | $ | 313,637 | $ | 10,742 | 4.58 | % | $ | 2,899,620 | $ | 19,001 | 0.88 | % |
| Federal funds sold | 3,577 | 156 | 5.83 | 1,593 | 13 | 1.09 | ||||||
| Investment securities - taxable | 3,726,710 | 104,559 | 3.75 | 3,442,854 | 58,294 | 2.26 | ||||||
| Investment securities - non-taxable - FTE | 1,280,947 | 27,848 | 2.91 | 1,139,628 | 26,709 | 3.13 | ||||||
| Loans receivable - FTE | 14,307,358 | 729,943 | 6.82 | 12,547,275 | 507,500 | 5.41 | ||||||
| Total interest-earning assets | 19,632,229 | 873,248 | 5.95 | 20,030,970 | 611,517 | 4.08 | ||||||
| Non-earning assets | 2,640,096 | 2,308,827 | ||||||||||
| Total assets | $ | 22,272,325 | $ | 22,339,797 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Liabilities | ||||||||||||
| Interest-bearing liabilities | ||||||||||||
| Savings and interest-bearing transaction accounts | $ | 11,246,350 | $ | 185,560 | 2.21 | % | $ | 11,420,566 | $ | 36,031 | 0.42 | % |
| Time deposits | 1,189,620 | 22,447 | 2.52 | 1,035,340 | 2,939 | 0.38 | ||||||
| Total interest-bearing deposits | 12,435,970 | 208,007 | 2.24 | 12,455,906 | 38,970 | 0.42 | ||||||
| Federal funds purchased | 59 | 3 | 6.80 | 294 | 2 | 0.91 | ||||||
| Securities sold under agreement to <br>repurchase | 144,603 | 3,333 | 3.08 | 129,076 | 729 | 0.76 | ||||||
| FHLB and other borrowed funds | 701,748 | 20,947 | 3.99 | 400,004 | 5,688 | 1.90 | ||||||
| Subordinated debentures | 440,199 | 12,368 | 3.76 | 540,175 | 16,472 | 4.08 | ||||||
| Total interest-bearing liabilities | 13,722,579 | 244,658 | 2.38 | 13,525,455 | 61,861 | 0.61 | ||||||
| Non-interest bearing liabilities | ||||||||||||
| Non-interest bearing deposits | 4,729,515 | 5,363,770 | ||||||||||
| Other liabilities | 197,498 | 161,402 | ||||||||||
| Total liabilities | 18,649,592 | 19,050,627 | ||||||||||
| Shareholders' equity | 3,622,733 | 3,289,170 | ||||||||||
| Total liabilities and shareholders' equity | $ | 22,272,325 | $ | 22,339,797 | ||||||||
| Net interest spread | 3.57 | % | 3.47 | % | ||||||||
| Net interest income and margin - FTE | $ | 628,590 | 4.28 | $ | 549,656 | 3.67 |
Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars and shares in thousands,<br>except per share data) | Sep 30,<br>2023 | Jun 30,<br>2023 | Mar 31,<br>2023 | Dec 31,<br>2022 | Sep 30,<br>2022 | Sep 30,<br>2023 | Sep 30,<br>2022 | ||||||||||||||
| EARNINGS, AS ADJUSTED | |||||||||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 98,453 | $ | 105,271 | $ | 102,962 | $ | 115,687 | $ | 108,705 | $ | 306,686 | $ | 189,575 | |||||||
| Pre-tax adjustments | |||||||||||||||||||||
| BOLI death benefits | (338) | (2,779) | — | — | — | (3,117) | — | ||||||||||||||
| Merger and acquisition expenses | — | — | — | — | — | — | 49,594 | ||||||||||||||
| Initial provision for credit losses - acquisition | — | — | — | — | — | — | 58,585 | ||||||||||||||
| Fair value adjustment for marketable securities | (4,507) | (783) | 11,408 | (1,032) | 2,628 | 6,118 | 2,304 | ||||||||||||||
| Special dividend from equity investment | — | — | — | — | — | — | (1,434) | ||||||||||||||
| TRUPS redemption fees | — | — | — | — | — | — | 2,081 | ||||||||||||||
| Special lawsuit settlement, net of expense | — | — | — | (10,000) | — | — | — | ||||||||||||||
| Recoveries on historic losses | — | — | (3,461) | — | (1,065) | (3,461) | (6,706) | ||||||||||||||
| Hurricane expense | — | — | — | 176 | — | — | — | ||||||||||||||
| Total pre-tax adjustments | (4,845) | (3,562) | 7,947 | (10,856) | 1,563 | (460) | 104,424 | ||||||||||||||
| Tax-effect of adjustments | (1,112) | (879) | 1,961 | (2,679) | 393 | (30) | 25,569 | ||||||||||||||
| Total adjustments after-tax (B) | (3,733) | (2,683) | 5,986 | (8,177) | 1,170 | (430) | 78,855 | ||||||||||||||
| Earnings, as adjusted (C) | $ | 94,720 | $ | 102,588 | $ | 108,948 | $ | 107,510 | $ | 109,875 | $ | 306,256 | $ | 268,430 | |||||||
| Average diluted shares outstanding (D) | 202,650 | 202,923 | 203,625 | 204,179 | 205,135 | 203,068 | 191,941 | ||||||||||||||
| GAAP diluted earnings per share: (A/D) | $ | 0.49 | $ | 0.52 | $ | 0.51 | $ | 0.57 | $ | 0.53 | $ | 1.51 | $ | 0.99 | |||||||
| Adjustments after-tax: (B/D) | (0.02) | (0.01) | 0.03 | (0.04) | 0.01 | — | 0.41 | ||||||||||||||
| Diluted earnings per common share, as adjusted: (C/D) | $ | 0.47 | $ | 0.51 | $ | 0.54 | $ | 0.53 | $ | 0.54 | $ | 1.51 | $ | 1.40 | |||||||
| ANNUALIZED RETURN ON AVERAGE ASSETS | |||||||||||||||||||||
| Return on average assets: (A/E) | 1.78 | % | 1.90 | % | 1.84 | % | 1.98 | % | 1.81 | % | 1.84 | % | 1.13 | % | |||||||
| Return on average assets, as adjusted: (ROA, as adjusted) ((A+D)/E) | 1.72 | 1.85 | 1.95 | 1.84 | 1.83 | 1.84 | 1.61 | ||||||||||||||
| Return on average assets excluding intangible amortization: ((A+C)/(E-F)) | 1.95 | 2.07 | 2.00 | 2.15 | 1.97 | 2.01 | 1.23 | ||||||||||||||
| Return on average assets, as adjusted, excluding intangible amortization: ((A+C+D)/(E-F)) | 1.87 | 2.02 | 2.12 | 2.00 | 1.99 | 2.00 | 1.74 | ||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 98,453 | $ | 105,271 | $ | 102,962 | $ | 115,687 | $ | 108,705 | $ | 306,686 | $ | 189,575 | |||||||
| Amortization of intangibles (B) | 2,477 | 2,478 | 2,477 | 2,478 | 2,477 | 7,432 | 6,376 | ||||||||||||||
| Amortization of intangibles after-tax (C) | 1,866 | 1,866 | 1,866 | 1,866 | 1,854 | 5,598 | 4,757 | ||||||||||||||
| Adjustments after-tax (D) | (3,733) | (2,683) | 5,986 | (8,177) | 1,170 | (430) | 78,855 | ||||||||||||||
| Average assets (E) | 21,902,434 | 22,227,404 | 22,695,855 | 23,187,005 | 23,778,769 | 22,272,325 | 22,339,797 | ||||||||||||||
| Average goodwill & core deposit intangible (F) | 1,450,478 | 1,452,951 | 1,455,423 | 1,454,639 | 1,459,034 | 1,452,933 | 1,294,971 |
Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | Sep 30,<br>2023 | Jun 30,<br>2023 | Mar 31,<br>2023 | Dec 31,<br>2022 | Sep 30,<br>2022 | Sep 30,<br>2023 | Sep 30,<br>2022 | ||||||||||||||
| ANNUALIZED RETURN ON AVERAGE COMMON EQUITY | |||||||||||||||||||||
| Return on average common equity: (A/D) | 10.65 | % | 11.63 | % | 11.70 | % | 13.29 | % | 12.25 | % | 11.32 | % | 7.71 | % | |||||||
| Return on average common equity, as adjusted: (ROE, as adjusted) ((A+C)/D) | 10.25 | 11.33 | 12.38 | 12.35 | 12.39 | 11.30 | 10.91 | ||||||||||||||
| Return on average tangible common equity: <br> (A/(D-E)) | 17.62 | 19.39 | 19.75 | 22.96 | 20.93 | 18.90 | 12.71 | ||||||||||||||
| Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) ((A+C)/(D-E)) | 16.95 | 18.90 | 20.90 | 21.33 | 21.16 | 18.87 | 18.00 | ||||||||||||||
| Return on average tangible common equity excluding intangible amortization: (B/(D-E)) | 17.95 | 19.74 | 20.11 | 23.33 | 21.29 | 19.24 | 13.03 | ||||||||||||||
| Return on average tangible common equity, as adjusted, excluding intangible amortization: ((B+C)/(D-E)) | 17.29 | 19.24 | 21.26 | 21.70 | 21.52 | 19.22 | 18.32 | ||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 98,453 | $ | 105,271 | $ | 102,962 | $ | 115,687 | $ | 108,705 | $ | 306,686 | $ | 189,575 | |||||||
| Earnings excluding intangible amortization (B) | 100,319 | 107,137 | 104,828 | 117,553 | 110,559 | 312,284 | 194,332 | ||||||||||||||
| Adjustments after-tax (C) | (3,733) | (2,683) | 5,986 | (8,177) | 1,170 | (430) | 78,855 | ||||||||||||||
| Average common equity (D) | 3,667,339 | 3,630,194 | 3,569,592 | 3,454,005 | 3,519,296 | 3,622,733 | 3,289,170 | ||||||||||||||
| Average goodwill & core deposits intangible (E) | 1,450,478 | 1,452,951 | 1,455,423 | 1,454,639 | 1,459,034 | 1,452,933 | 1,294,971 | ||||||||||||||
| EFFICIENCY RATIO & P5NR | |||||||||||||||||||||
| Efficiency ratio: ((D-H)/(B+C+E)) | 45.53 | % | 44.00 | % | 44.80 | % | 42.44 | % | 43.24 | % | 44.76 | % | 52.44 | % | |||||||
| Efficiency ratio, as adjusted: ((D-H-J)/(B+C+E-I)) | 46.44 | 44.83 | 43.42 | 43.07 | 42.97 | 44.86 | 45.13 | ||||||||||||||
| Pre-tax net income to total revenue (net) (A/(B+C)) | 52.70 | 53.23 | 53.43 | 54.50 | 55.39 | 53.12 | 37.21 | ||||||||||||||
| Pre-tax net income, as adjusted, to total revenue (net) ((A+F)/(B+C)) | 50.72 | 51.85 | 56.63 | 50.52 | 56.00 | 53.06 | 53.00 | ||||||||||||||
| Pre-tax, pre-provision, net income (PPNR) (B+C-D) | $ | 130,588 | $ | 140,870 | $ | 134,115 | $ | 153,423 | $ | 141,959 | $ | 405,573 | $ | 304,737 | |||||||
| Pre-tax, pre-provision, net income, as adjusted (B+C-D+F-G) | 125,743 | 137,308 | 142,062 | 142,567 | 143,522 | 405,113 | 350,576 | ||||||||||||||
| P5NR ((Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C) | 53.23 | % | 54.78 | % | 53.91 | % | 56.34 | % | 55.39 | % | 53.99 | % | 46.07 | % | |||||||
| P5NR, as adjusted (B+C-D+F-G)/(B+C) | 51.25 | 53.40 | 57.11 | 52.35 | 56.00 | 53.92 | 53.00 | ||||||||||||||
| Pre-tax net income (A) | $ | 129,288 | $ | 136,887 | $ | 132,915 | $ | 148,423 | $ | 141,959 | $ | 399,090 | $ | 246,152 | |||||||
| Net interest income (B) | 201,937 | 207,643 | 214,595 | 215,666 | 213,104 | 624,175 | 543,010 | ||||||||||||||
| Non-interest income (C) | 43,413 | 49,509 | 34,164 | 56,660 | 43,201 | 127,086 | 118,451 | ||||||||||||||
| Non-interest expense (D) | 114,762 | 116,282 | 114,644 | 118,903 | 114,346 | 345,688 | 356,724 | ||||||||||||||
| Fully taxable equivalent adjustment (E) | 1,293 | 1,494 | 1,628 | 2,017 | 2,437 | 4,415 | 6,646 | ||||||||||||||
| Total pre-tax adjustments (F) | (4,845) | (3,562) | 7,947 | (10,856) | 1,563 | (460) | 104,424 | ||||||||||||||
| Initial provision for credit losses - acquisition (G) | — | — | — | — | — | — | 58,585 | ||||||||||||||
| Amortization of intangibles (H) | 2,477 | 2,478 | 2,477 | 2,478 | 2,477 | 7,432 | 6,376 | ||||||||||||||
| Adjustments: | |||||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||
| Fair value adjustment for marketable securities | $ | 4,507 | $ | 783 | $ | (11,408) | $ | 1,032 | $ | (2,628) | $ | (6,118) | $ | (2,304) | |||||||
| Gain on OREO | — | 319 | — | 13 | — | 319 | 487 | ||||||||||||||
| Gain (loss) on branches, equipment and other assets, net | — | 917 | 7 | 10 | (13) | 924 | 5 | ||||||||||||||
| Special dividend from equity investment | — | — | — | — | — | — | 1,434 | ||||||||||||||
| Lawsuit settlement - special lawsuit | — | — | — | 15,000 | — | — | — | ||||||||||||||
| BOLI death benefits | 338 | 2,779 | — | — | — | 3,117 | — | ||||||||||||||
| Recoveries on historic losses | — | — | 3,461 | — | 1,065 | 3,461 | 6,706 | ||||||||||||||
| Total non-interest income adjustments (I) | $ | 4,845 | $ | 4,798 | $ | (7,940) | $ | 16,055 | $ | (1,576) | $ | 1,703 | $ | 6,328 | |||||||
| Non-interest expense: | |||||||||||||||||||||
| Merger and acquisition expenses | — | — | — | — | — | — | 49,594 | ||||||||||||||
| Hurricane expense | — | — | — | 176 | — | — | — | ||||||||||||||
| Legal expense - special lawsuit | — | — | — | 5,000 | — | — | — | ||||||||||||||
| TRUPS redemption fees | — | — | — | — | — | — | 2,081 | ||||||||||||||
| Total non-interest expense adjustments (J) | $ | — | $ | — | $ | — | $ | 5,176 | $ | — | $ | — | $ | 51,675 |
Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sep 30,<br>2023 | Jun 30,<br>2023 | Mar 31,<br>2023 | Dec 31,<br>2022 | Sep 30,<br>2022 | |||||||||||
| TANGIBLE BOOK VALUE PER COMMON SHARE | |||||||||||||||
| Book value per common share: (A/B) | $ | 18.06 | $ | 18.04 | $ | 17.87 | $ | 17.33 | $ | 16.94 | |||||
| Tangible book value per common share: ((A-C-D)/B) | 10.90 | 10.87 | 10.71 | 10.17 | 9.82 | ||||||||||
| Total stockholders' equity (A) | $ | 3,654,874 | $ | 3,654,084 | $ | 3,630,885 | $ | 3,526,362 | $ | 3,460,015 | |||||
| End of period common shares outstanding (B) | 202,323 | 202,573 | 203,168 | 203,434 | 204,219 | ||||||||||
| Goodwill (C) | 1,398,253 | 1,398,253 | 1,398,253 | 1,398,253 | 1,394,353 | ||||||||||
| Core deposit and other intangibles (D) | 51,023 | 53,500 | 55,978 | 58,455 | 60,932 | ||||||||||
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | |||||||||||||||
| Equity to assets: (B/A) | 16.65 | % | 16.51 | % | 16.12 | % | 15.41 | % | 14.94 | % | |||||
| Tangible common equity to tangible assets: ((B-C-D)/(A-C-D)) | 10.76 | 10.65 | 10.33 | 9.66 | 9.24 | ||||||||||
| Total assets (A) | $ | 21,950,638 | $ | 22,126,429 | $ | 22,518,255 | $ | 22,883,588 | $ | 23,157,370 | |||||
| Total stockholders' equity (B) | 3,654,874 | 3,654,084 | 3,630,885 | 3,526,362 | 3,460,015 | ||||||||||
| Goodwill (C) | 1,398,253 | 1,398,253 | 1,398,253 | 1,398,253 | 1,394,353 | ||||||||||
| Core deposit and other intangibles (D) | 51,023 | 53,500 | 55,978 | 58,455 | 60,932 |