CONWAY, Ark., July 20, 2017 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ:HOMB), parent company of Centennial Bank, today announced a record quarterly profit of $50.1 million for the second quarter of 2017 compared to $43.5 million, for the same quarter in 2016. Diluted earnings per share for the second quarter of 2017 was $0.35 per share compared to $0.31 per share for 2016, representing an increase of $0.04 per share or 12.9% for the second quarter of 2017 when compared to the same quarter in the prior year. Excluding merger expenses, diluted earnings per share for the second quarter of 2017 remained $0.35 per share.
“Our second quarter earnings excluding merger expenses are $50.7 million, which is $3.3 million or 7%, higher than the previous record quarterly earnings reported for Home BancShares,” said John Allison, Chairman. “We are proud of this earnings performance for the second quarter of 2017 reaching an impressive diluted earnings per share excluding merger expenses of $0.35 per share.”
“Now that we have completed the systems conversions for both of the first quarter of 2017 acquisitions, we can speed up the process of improving the financial metrics to maximize returns to our shareholders,” added Tracy French, Centennial Bank President and Chief Executive Officer. “We are also making preparations for the completion of our acquisition of Stonegate Bank, which is anticipated to close late in the third quarter or early in the fourth quarter of 2017, subject to both shareholder and regulatory approvals.”
“We have again, for the twenty-fifth consecutive quarter, reported the most profitable quarter in the Company’s history,” said Randy Sims, Home BancShares, Inc. Chief Executive Officer. “In addition to the excellent earnings previously mentioned, we are happy to report record net interest income for the second quarter of 2017 plus continued improvement to our non-performing asset portfolio.”
Operating Highlights
Accretion yield increased approximately $850,000 from $7.6 million for the first quarter of 2017 to $8.5 million for second quarter of 2017. Each quarter we perform credit impairment tests on the loans acquired in our acquisitions. During our second quarter 2017 impairment testing, several pools were determined to have a material projected credit improvement. The additional accretion income from the recently acquired loan portfolios combined with this projected credit improvement, resulted in a comparable level of scheduled accretion. The net increase of recognized accretion income when compared to the first quarter of 2017 is primarily due to pay-off accretion increasing from $1.9 million to $2.6 million.
Net interest margin, on a fully taxable equivalent basis, was 4.50% for the quarter just ended compared to 4.83% for the same quarter in 2016 and compared to 4.70% for the first quarter of 2017. The net interest margin, excluding accretion yield decreased when comparing the first quarter of 2017 to the second quarter of 2017 at 4.32% and 4.11%, respectively. The decrease in net interest margin is primarily the result of the addition of $300 million of 5.625% fixed-to-floating rate subordinated notes on April 3, 2017. The subordinated notes added approximately $4.2 million of interest expense when compared to the prior quarter. Consequently, the addition of the subordinated notes negatively impacted net interest margin by 15 basis points. Also, the Company made a strategic decision to keep excess cash liquidity on the books during the second quarter of 2017 resulting in a negative impact to the net interest margin of 7 basis points.
During the second quarter of 2017, the Company recorded a provision for loan loss of $387,000 compared to $5.7 million in the second quarter of 2016. Since the second quarter of 2016 the Company has seen both an improvement in asset quality and a decline in loan growth. Non-performing loans for the second quarter of 2016 and 2017 were, $59.7 million and $46.9 million, respectively, for an improvement of $12.8 million. Loan growth was $169.9 million for the second quarter of 2016 while there was a $15.2 million decline in loans for the second quarter of 2017. For the second quarter of 2017, net charge-offs were $560,000 compared to net charge-offs of $3.7 million for the second quarter of 2016.
The Company reported $24.4 million of non-interest income for the second quarter of 2017, compared to $21.8 million for the second quarter of 2016. The most important components of the second quarter non-interest income were $8.6 million from other service charges and fees, $6.0 million from service charges on deposits accounts, $3.8 million from mortgage lending income, and $2.8 million from other income.
Non-interest expense for the second quarter of 2017 was $51.0 million compared to $47.6 million for the second quarter of 2016. Non-interest expense excluding merger expenses for the second quarter of 2017 was $51.8 million compared to $47.6 million for the second quarter of 2016, an increase of $4.2 million. This increase excluding merger expenses is primarily the result of an increase in the costs associated with asset growth from the acquisitions in the first quarter of 2017 combined with approximately $664,000 of growth in non-interest expense related to the Centennial Commercial Finance Group (“Centennial CFG”). For the second quarter of 2017, our core efficiency ratio was 37.29% which has increased from the 36.84% reported for second quarter of 2016. This increase is primarily the result of our recently completed acquisitions not yet up to our Company’s legacy efficiency metrics.
Financial Condition
Total loans receivable were $7.83 billion at June 30, 2017 compared to $7.39 billion at December 31, 2016. Total deposits were $7.77 billion at June 30, 2017 compared to $6.94 billion at December 31, 2016. Total assets were $10.87 billion at June 30, 2017 compared to $9.81 billion at December 31, 2016.
During the first quarter of 2017, the Company acquired $446.3 million of loans, net of purchase accounting discounts. From December 31, 2016 to June 30, 2017, the Company produced approximately $525,000 of organic loan growth. Centennial CFG produced $40.3 million of net organic loan growth during the first six months of 2017 while the legacy footprint experienced significant net payoffs during the first six months of 2017, resulting in a decline of $39.8 million.
From March 31, 2017 to June 30, 2017, the Company experienced an organic decline in loans receivable of approximately $15.2 million. Centennial CFG produced $67.7 million of organic loan growth during the second quarter of 2017 while the legacy footprint experienced significant payoffs during the second quarter of 2017, resulting in a decline of $82.9 million. Centennial CFG had loans of $1.15 billion at June 30, 2017.
Non-performing loans at June 30, 2017 were $22.0 million, $24.6 million, $306,000 and zero in the Arkansas, Florida, Alabama and Centennial CFG markets, respectively, for a total of $46.9 million. Non-performing loans as a percent of total loans were 0.60% as of June 30, 2017 compared to 0.85% as of December 31, 2016. Non-performing assets at June 30, 2017 were $33.4 million, $31.3 million, $947,000 and zero in the Arkansas, Florida and Alabama and Centennial CFG markets, respectively, for a total of $65.7 million. Non-performing assets as a percent of total assets were 0.60% as of June 30, 2017 compared to 0.81% as of December 31, 2016.
The Company’s allowance for loan losses was $80.1 million at June 30, 2017, or 1.02% of total loans, compared to $80.0 million, or 1.08% of total loans, at December 31, 2016. This decrease is primarily the result of acquiring $446.3 million of loans during the first quarter of 2017 which do not have an associated allowance for loan losses as a result of purchase accounting. As of June 30, 2017 and December 31, 2016, the Company’s allowance for loan losses was 171% and 127% of its total non-performing loans, respectively.
Stockholders’ equity was $1.48 billion at June 30, 2017 compared to $1.33 billion at December 31, 2016, an increase of $148.5 million. Book value per common share was $10.32 at June 30, 2017 compared to $9.45 at December 31, 2016. Tangible book value per common share was $7.23 at June 30, 2017 compared to $6.63 at December 31, 2016 for an annualized increase of 18.2%.
Branches
In an effort to achieve efficiencies primarily from our acquisitions, during the second quarter, the Company closed one branch in Sarasota, Florida and two branches in Ft. Lauderdale, Florida. During the second quarter of 2017, the Company opened a branch location in Clearwater, Florida and a loan production office in Los Angeles under the management of Centennial CFG. The Company currently has 76 branches in Arkansas, 64 branches in Florida, 6 branches in Alabama and one branch in New York City.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, July 20, 2017. We encourage all participants to pre-register for the conference call using the following link: http://dpregister.com/10109971. Callers who pre-register will be given dial-in instructions and a unique PIN to gain immediate access to the live call. Participants may pre-register now, or at any time prior to the call, and will immediately receive simple instructions via email. The Home BancShares conference call will also be automatically scheduled as an event in your Outlook calendar.
Those without internet access or unable to pre-register may dial in and listen to the live call by calling 1-877-508-9586 and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-344-7529, Passcode: 10109971, which will be available until July 27, 2017 at 10:59 p.m. CT (11:59 ET). Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com under “Investor Relations” for 12 months.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures, including earnings excluding non-fundamental items, return on average assets excluding intangible amortization, return on average assets excluding non-fundamental items, return on average common equity excluding intangible amortization, core efficiency ratio, non-GAAP net interest margin, tangible book value per common share, and the tangible common equity to tangible assets ratio, to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant non-fundamental items or non-recurring transactions. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
General
This release contains forward-looking statements regarding the Company's plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand, the ability to successfully integrate new acquisitions and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Home BancShares, Inc.'s financial results is included in its Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2017.
Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, South Alabama and New York City. The Company’s common stock is traded through the NASDAQ Global Select Market under the symbol “HOMB.”
| Home BancShares, Inc. | |||||||||||||||||||||
| Consolidated End of Period Balance Sheets | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | |||||||||||||||||
| (In thousands) | 2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||||
| ASSETS | |||||||||||||||||||||
| Cash and due from banks | $ | 147,041 | $ | 163,662 | $ | 123,758 | $ | 123,126 | $ | 136,632 | |||||||||||
| Interest-bearing deposits with other banks | 313,447 | 253,427 | 92,891 | 173,034 | 48,762 | ||||||||||||||||
| Cash and cash equivalents | 460,488 | 417,089 | 216,649 | 296,160 | 185,394 | ||||||||||||||||
| Federal funds sold | - | 1,700 | 1,550 | 1,850 | 525 | ||||||||||||||||
| Investment securities - available-for-sale | 1,400,431 | 1,250,590 | 1,072,920 | 1,233,269 | 1,221,778 | ||||||||||||||||
| Investment securities - held-to-maturity | 254,161 | 276,599 | 284,176 | 275,544 | 287,725 | ||||||||||||||||
| Loans receivable | 7,834,475 | 7,849,645 | 7,387,699 | 7,112,291 | 7,022,156 | ||||||||||||||||
| Allowance for loan losses | (80,138 | ) | (80,311 | ) | (80,002 | ) | (76,370 | ) | (74,341 | ) | |||||||||||
| Loans receivable, net | 7,754,337 | 7,769,334 | 7,307,697 | 7,035,921 | 6,947,815 | ||||||||||||||||
| Bank premises and equipment, net | 207,071 | 212,813 | 205,301 | 208,137 | 207,932 | ||||||||||||||||
| Foreclosed assets held for sale | 18,789 | 17,315 | 15,951 | 17,053 | 17,778 | ||||||||||||||||
| Cash value of life insurance | 97,684 | 97,223 | 86,491 | 86,230 | 85,889 | ||||||||||||||||
| Accrued interest receivable | 32,445 | 32,413 | 30,838 | 29,398 | 28,548 | ||||||||||||||||
| Deferred tax asset, net | 68,368 | 67,063 | 61,298 | 56,435 | 61,613 | ||||||||||||||||
| Goodwill | 420,941 | 420,941 | 377,983 | 377,983 | 377,983 | ||||||||||||||||
| Core deposit and other intangibles | 21,019 | 21,885 | 18,311 | 19,073 | 19,835 | ||||||||||||||||
| Other assets | 136,494 | 132,503 | 129,300 | 127,185 | 139,311 | ||||||||||||||||
| Total assets | $ | 10,872,228 | $ | 10,717,468 | $ | 9,808,465 | $ | 9,764,238 | $ | 9,582,126 | |||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||
| Liabilities | |||||||||||||||||||||
| Deposits: | |||||||||||||||||||||
| Demand and non-interest-bearing | $ | 1,957,677 | $ | 1,862,996 | $ | 1,695,184 | $ | 1,717,467 | $ | 1,645,472 | |||||||||||
| Savings and interest-bearing transaction accounts | 4,335,456 | 4,274,194 | 3,963,241 | 3,792,229 | 3,678,546 | ||||||||||||||||
| Time deposits | 1,474,255 | 1,430,017 | 1,284,002 | 1,330,597 | 1,388,930 | ||||||||||||||||
| Total deposits | 7,767,388 | 7,567,207 | 6,942,427 | 6,840,293 | 6,712,948 | ||||||||||||||||
| Federal funds purchased | - | - | - | - | - | ||||||||||||||||
| Securities sold under agreements to repurchase | 133,741 | 123,793 | 121,290 | 109,350 | 111,072 | ||||||||||||||||
| FHLB and other borrowed funds | 1,099,478 | 1,455,040 | 1,305,198 | 1,420,369 | 1,380,889 | ||||||||||||||||
| Accrued interest payable and other liabilities | 37,751 | 69,125 | 51,234 | 37,382 | 51,476 | ||||||||||||||||
| Subordinated debentures | 357,838 | 60,735 | 60,826 | 60,826 | 60,826 | ||||||||||||||||
| Total liabilities | 9,396,196 | 9,275,900 | 8,480,975 | 8,468,220 | 8,317,211 | ||||||||||||||||
| Stockholders' equity | |||||||||||||||||||||
| Common stock | 1,431 | 1,434 | 1,405 | 1,405 | 1,404 | ||||||||||||||||
| Capital surplus | 940,821 | 948,982 | 869,737 | 866,310 | 863,560 | ||||||||||||||||
| Retained earnings | 527,338 | 490,142 | 455,948 | 419,999 | 389,014 | ||||||||||||||||
| Accumulated other comprehensive income | 6,442 | 1,010 | 400 | 8,304 | 10,937 | ||||||||||||||||
| Total stockholders' equity | 1,476,032 | 1,441,568 | 1,327,490 | 1,296,018 | 1,264,915 | ||||||||||||||||
| Total liabilities and stockholders' equity | $ | 10,872,228 | $ | 10,717,468 | $ | 9,808,465 | $ | 9,764,238 | $ | 9,582,126 | |||||||||||
| Home BancShares, Inc. | |||||||||||||||||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Jun. 30, | Jun. 30, | |||||||||||||||||||||||||
| (In thousands) | 2017 | 2017 | 2016 | 2016 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||||||||||
| Loans | $ | 112,732 | $ | 105,762 | $ | 103,113 | $ | 102,953 | $ | 100,415 | $ | 218,494 | $ | 197,328 | |||||||||||||||||
| Investment securities | |||||||||||||||||||||||||||||||
| Taxable | 6,434 | 5,478 | 5,068 | 5,583 | 5,145 | 11,912 | 10,595 | ||||||||||||||||||||||||
| Tax-exempt | 2,966 | 2,944 | 3,059 | 2,720 | 2,823 | 5,910 | 5,638 | ||||||||||||||||||||||||
| Deposits - other banks | 727 | 308 | 146 | 117 | 106 | 1,035 | 208 | ||||||||||||||||||||||||
| Federal funds sold | 4 | 2 | 2 | 2 | 1 | 6 | 5 | ||||||||||||||||||||||||
| Total interest income | 122,863 | 114,494 | 111,388 | 111,375 | 108,490 | 237,357 | 213,774 | ||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||||
| Interest on deposits | 6,810 | 5,486 | 4,398 | 4,040 | 3,854 | 12,296 | 7,488 | ||||||||||||||||||||||||
| Federal funds purchased | - | - | - | - | 1 | - | 2 | ||||||||||||||||||||||||
| FHLB borrowed funds | 3,710 | 3,589 | 3,201 | 3,139 | 3,074 | 7,299 | 6,144 | ||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 196 | 165 | 153 | 142 | 134 | 361 | 279 | ||||||||||||||||||||||||
| Subordinated debentures | 4,795 | 439 | 429 | 401 | 386 | 5,234 | 763 | ||||||||||||||||||||||||
| Total interest expense | 15,511 | 9,679 | 8,181 | 7,722 | 7,449 | 25,190 | 14,676 | ||||||||||||||||||||||||
| Net interest income | 107,352 | 104,815 | 103,207 | 103,653 | 101,041 | 212,167 | 199,098 | ||||||||||||||||||||||||
| Provision for loan losses | 387 | 3,914 | 1,703 | 5,536 | 5,692 | 4,301 | 11,369 | ||||||||||||||||||||||||
| Net interest income after | |||||||||||||||||||||||||||||||
| provision for loan losses | 106,965 | 100,901 | 101,504 | 98,117 | 95,349 | 207,866 | 187,729 | ||||||||||||||||||||||||
| Non-interest income | |||||||||||||||||||||||||||||||
| Service charges on deposit accounts | 5,966 | 5,982 | 6,442 | 6,527 | 6,151 | 11,948 | 12,080 | ||||||||||||||||||||||||
| Other service charges and fees | 8,576 | 8,917 | 7,611 | 7,504 | 7,968 | 17,493 | 15,085 | ||||||||||||||||||||||||
| Trust fees | 309 | 456 | 329 | 365 | 359 | 765 | 763 | ||||||||||||||||||||||||
| Mortgage lending income | 3,750 | 2,791 | 4,123 | 3,932 | 3,481 | 6,541 | 6,344 | ||||||||||||||||||||||||
| Insurance commissions | 465 | 545 | 488 | 534 | 617 | 1,010 | 1,274 | ||||||||||||||||||||||||
| Increase in cash value of life insurance | 463 | 310 | 320 | 344 | 353 | 773 | 748 | ||||||||||||||||||||||||
| Dividends from FHLB, FRB, Bankers' Bank & other | 472 | 1,149 | 944 | 808 | 719 | 1,621 | 1,339 | ||||||||||||||||||||||||
| Gain on acquisitions | - | 3,807 | - | - | - | 3,807 | - | ||||||||||||||||||||||||
| Gain on sale of SBA loans | 387 | 188 | 645 | 364 | 79 | 575 | 79 | ||||||||||||||||||||||||
| Gain (loss) on sale of branches, equipment and other assets, net | 431 | (56 | ) | (1 | ) | (86 | ) | 840 | 375 | 787 | |||||||||||||||||||||
| Gain (loss) on OREO, net | 393 | 121 | 159 | 132 | (941 | ) | 514 | (845 | ) | ||||||||||||||||||||||
| Gain (loss) on securities, net | 380 | 423 | 644 | - | 15 | 803 | 25 | ||||||||||||||||||||||||
| FDIC indemnification accretion/(amortization), net | - | - | - | - | (410 | ) | - | (772 | ) | ||||||||||||||||||||||
| Other income | 2,825 | 1,837 | 2,124 | 1,590 | 2,541 | 4,662 | 4,302 | ||||||||||||||||||||||||
| Total non-interest income | 24,417 | 26,470 | 23,828 | 22,014 | 21,772 | 50,887 | 41,209 | ||||||||||||||||||||||||
| Non-interest expense | |||||||||||||||||||||||||||||||
| Salaries and employee benefits | 28,034 | 27,421 | 26,944 | 25,623 | 25,437 | 55,455 | 49,395 | ||||||||||||||||||||||||
| Occupancy and equipment | 7,034 | 6,681 | 6,281 | 6,668 | 6,509 | 13,715 | 13,180 | ||||||||||||||||||||||||
| Data processing expense | 2,863 | 2,723 | 2,278 | 2,791 | 2,766 | 5,586 | 5,430 | ||||||||||||||||||||||||
| Other operating expenses | 13,072 | 18,316 | 11,991 | 15,944 | 12,875 | 31,388 | 25,230 | ||||||||||||||||||||||||
| Total non-interest expense | 51,003 | 55,141 | 47,494 | 51,026 | 47,587 | 106,144 | 93,235 | ||||||||||||||||||||||||
| Income before income taxes | 80,379 | 72,230 | 77,838 | 69,105 | 69,534 | 152,609 | 135,703 | ||||||||||||||||||||||||
| Income tax expense | 30,282 | 25,374 | 29,248 | 25,485 | 26,025 | 55,656 | 50,767 | ||||||||||||||||||||||||
| Net income | $ | 50,097 | $ | 46,856 | $ | 48,590 | $ | 43,620 | $ | 43,509 | $ | 96,953 | $ | 84,936 | |||||||||||||||||
| Home BancShares, Inc. | ||||||||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Jun. 30, | Jun. 30, | ||||||||||||||||||||||||
| (Dollars and shares in thousands, except per share data) | 2017 | 2017 | 2016 | 2016 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||||||||||||
| Diluted earnings per common share | $ | 0.35 | $ | 0.33 | $ | 0.35 | $ | 0.31 | $ | 0.31 | $ | 0.68 | $ | 0.60 | ||||||||||||||||
| Diluted earnings per common share excluding gain on acquisitions, merger expenses, reduced provision for loan losses as a result of a significant loan recovery & FDIC loss share buy-out expense (non-GAAP)(1) | 0.35 | 0.33 | 0.33 | 0.33 | 0.31 | 0.68 | 0.60 | |||||||||||||||||||||||
| Basic earnings per common share | 0.35 | 0.33 | 0.35 | 0.31 | 0.31 | 0.68 | 0.61 | |||||||||||||||||||||||
| Dividends per share - common | 0.0900 | 0.0900 | 0.0900 | 0.0900 | 0.0875 | 0.1800 | 0.1625 | |||||||||||||||||||||||
| Book value per common share | 10.32 | 10.05 | 9.45 | 9.22 | 9.01 | 10.32 | 9.01 | |||||||||||||||||||||||
| Tangible book value per common share (non-GAAP)(1) | 7.23 | 6.96 | 6.63 | 6.40 | 6.18 | 7.23 | 6.18 | |||||||||||||||||||||||
| STOCK INFORMATION | ||||||||||||||||||||||||||||||
| Average common shares outstanding | 143,282 | 141,785 | 140,465 | 140,436 | 140,382 | 142,538 | 140,386 | |||||||||||||||||||||||
| Average diluted shares outstanding | 144,116 | 142,492 | 140,781 | 140,703 | 140,608 | 143,270 | 140,667 | |||||||||||||||||||||||
| End of period common shares outstanding | 143,071 | 143,442 | 140,472 | 140,490 | 140,382 | 143,071 | 140,382 | |||||||||||||||||||||||
| ANNUALIZED PERFORMANCE METRICS | ||||||||||||||||||||||||||||||
| Return on average assets | 1.86 | % | 1.86 | % | 1.98 | % | 1.81 | % | 1.83 | % | 1.86 | % | 1.81 | % | ||||||||||||||||
| Return on average assets excluding intangible amortization (non-GAAP)(1) | 1.96 | % | 1.96 | % | 2.08 | % | 1.91 | % | 1.93 | % | 1.96 | % | 1.91 | % | ||||||||||||||||
| Return on average assets excluding intangible amortization, provision for loan losses, merger expenses, gain on acquisitions, reduced provision for loan losses as a result of a significant loan recovery, loss on FDIC loss share buyout and income taxes (Core ROA) (non-GAAP)(1) | 3.19 | % | 3.31 | % | 3.23 | % | 3.43 | % | 3.33 | % | 3.25 | % | 3.30 | % | ||||||||||||||||
| Return on average common equity | 13.83 | % | 13.85 | % | 14.79 | % | 13.62 | % | 14.11 | % | 13.84 | % | 13.94 | % | ||||||||||||||||
| Return on average tangible common equity excluding intangible amortization (non-GAAP)(1) | 20.09 | % | 20.08 | % | 21.45 | % | 20.01 | % | 21.01 | % | 20.09 | % | 20.90 | % | ||||||||||||||||
| Efficiency ratio | 37.48 | % | 40.76 | % | 36.19 | % | 39.41 | % | 37.52 | % | 39.12 | % | 37.51 | % | ||||||||||||||||
| Core efficiency ratio (non-GAAP)(1) | 37.29 | % | 36.96 | % | 35.97 | % | 36.51 | % | 36.84 | % | 37.13 | % | 36.88 | % | ||||||||||||||||
| Net interest margin - FTE | 4.50 | % | 4.70 | % | 4.75 | % | 4.86 | % | 4.83 | % | 4.60 | % | 4.82 | % | ||||||||||||||||
| Fully taxable equivalent adjustment | $ | 2,016 | $ | 2,011 | $ | 2,108 | $ | 1,869 | $ | 1,974 | $ | 4,027 | $ | 3,947 | ||||||||||||||||
| Total revenue | 147,280 | 140,964 | 135,216 | 133,389 | 130,262 | 288,244 | 254,983 | |||||||||||||||||||||||
| OTHER OPERATING EXPENSES | ||||||||||||||||||||||||||||||
| Advertising | $ | 812 | $ | 698 | $ | 910 | $ | 866 | $ | 733 | $ | 1,510 | $ | 1,556 | ||||||||||||||||
| Merger and acquisition expenses | 789 | 6,727 | 433 | - | - | 7,516 | - | |||||||||||||||||||||||
| FDIC loss share buy-out expense | - | - | - | 3,849 | - | - | - | |||||||||||||||||||||||
| Amortization of intangibles | 866 | 804 | 762 | 762 | 763 | 1,670 | 1,608 | |||||||||||||||||||||||
| Electronic banking expense | 1,654 | 1,519 | 1,621 | 1,428 | 1,237 | 3,173 | 2,693 | |||||||||||||||||||||||
| Directors' fees | 324 | 313 | 294 | 292 | 289 | 637 | 564 | |||||||||||||||||||||||
| Due from bank service charges | 456 | 420 | 393 | 319 | 337 | 876 | 642 | |||||||||||||||||||||||
| FDIC and state assessment | 1,182 | 1,288 | 1,097 | 1,502 | 1,446 | 2,470 | 2,892 | |||||||||||||||||||||||
| Insurance | 543 | 578 | 563 | 553 | 544 | 1,121 | 1,077 | |||||||||||||||||||||||
| Legal and accounting | 474 | 627 | 442 | 583 | 658 | 1,101 | 1,181 | |||||||||||||||||||||||
| Other professional fees | 1,233 | 1,153 | 943 | 1,137 | 1,044 | 2,386 | 1,969 | |||||||||||||||||||||||
| Operating supplies | 477 | 467 | 466 | 437 | 419 | 944 | 855 | |||||||||||||||||||||||
| Postage | 295 | 286 | 269 | 269 | 260 | 581 | 546 | |||||||||||||||||||||||
| Telephone | 398 | 324 | 360 | 449 | 455 | 722 | 942 | |||||||||||||||||||||||
| Other expense | 3,569 | 3,112 | 3,438 | 3,498 | 4,690 | 6,681 | 8,705 | |||||||||||||||||||||||
| Total other operating expenses | $ | 13,072 | $ | 18,316 | $ | 11,991 | $ | 15,944 | $ | 12,875 | $ | 31,388 | $ | 25,230 | ||||||||||||||||
| (1) Calculation of this metric and the reconciliation to GAAP is included in the schedules accompanying this release. | ||||||||||||||||||||||||||||||
| Home BancShares, Inc. | ||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||||
| (Dollars in thousands) | 2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||||
| BALANCE SHEET RATIOS | ||||||||||||||||||||||
| Total loans to total deposits | 100.86 | % | 103.73 | % | 106.41 | % | 103.98 | % | 104.61 | % | ||||||||||||
| Common equity to assets | 13.58 | % | 13.45 | % | 13.53 | % | 13.27 | % | 13.20 | % | ||||||||||||
| Tangible common equity to tangible assets (non-GAAP)(1) | 9.91 | % | 9.72 | % | 9.89 | % | 9.60 | % | 9.44 | % | ||||||||||||
| LOANS RECEIVABLE | ||||||||||||||||||||||
| Real estate | ||||||||||||||||||||||
| Commercial real estate loans | ||||||||||||||||||||||
| Non-farm/non-residential | $ | 3,368,663 | $ | 3,462,773 | $ | 3,153,121 | $ | 2,954,618 | $ | 2,884,162 | ||||||||||||
| Construction/land development | 1,315,309 | 1,217,519 | 1,135,843 | 1,065,204 | 1,068,544 | |||||||||||||||||
| Agricultural | 78,260 | 79,940 | 77,736 | 77,556 | 78,535 | |||||||||||||||||
| Residential real estate loans | ||||||||||||||||||||||
| Residential 1-4 family | 1,513,888 | 1,493,133 | 1,356,136 | 1,264,384 | 1,262,416 | |||||||||||||||||
| Multifamily residential | 398,781 | 404,815 | 340,926 | 328,089 | 395,352 | |||||||||||||||||
| Total real estate | 6,674,901 | 6,658,180 | 6,063,762 | 5,689,851 | 5,689,009 | |||||||||||||||||
| Consumer | 38,424 | 41,893 | 41,745 | 42,487 | 48,933 | |||||||||||||||||
| Commercial and industrial | 994,827 | 1,013,403 | 1,123,213 | 1,225,043 | 1,130,776 | |||||||||||||||||
| Agricultural | 69,697 | 69,307 | 74,673 | 73,413 | 69,666 | |||||||||||||||||
| Other | 56,626 | 66,862 | 84,306 | 81,497 | 83,772 | |||||||||||||||||
| Loans receivable | $ | 7,834,475 | $ | 7,849,645 | $ | 7,387,699 | $ | 7,112,291 | $ | 7,022,156 | ||||||||||||
| Discount for credit losses on purchased loans | $ | 95,627 | $ | 104,464 | $ | 100,148 | $ | 108,017 | $ | 120,910 | ||||||||||||
| Purchased loans, net of discount for credit losses on purchased loans | 1,355,922 | 1,375,210 | 1,125,599 | 1,368,305 | 1,597,903 | |||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||
| Balance, beginning of period | $ | 80,311 | $ | 80,002 | $ | 76,370 | $ | 74,341 | $ | 72,306 | ||||||||||||
| Loans charged off | 1,405 | 4,706 | 4,836 | 4,351 | 4,367 | |||||||||||||||||
| Recoveries of loans previously charged off | 845 | 1,101 | 6,765 | 844 | 710 | |||||||||||||||||
| Net loans (recovered)/charged off | 560 | 3,605 | (1,929 | ) | 3,507 | 3,657 | ||||||||||||||||
| Provision for loan losses | 387 | 3,914 | 1,703 | 5,536 | 5,692 | |||||||||||||||||
| Balance, end of period | $ | 80,138 | $ | 80,311 | $ | 80,002 | $ | 76,370 | $ | 74,341 | ||||||||||||
| Net (recoveries) charge-offs to average total loans | 0.03 | % | 0.19 | % | -0.11 | % | 0.20 | % | 0.21 | % | ||||||||||||
| Allowance for loan losses to total loans | 1.02 | % | 1.02 | % | 1.08 | % | 1.07 | % | 1.06 | % | ||||||||||||
| NON-PERFORMING ASSETS | ||||||||||||||||||||||
| Non-performing loans | ||||||||||||||||||||||
| Non-accrual loans | $ | 32,426 | $ | 43,810 | $ | 47,182 | $ | 39,353 | $ | 36,660 | ||||||||||||
| Loans past due 90 days or more | 14,442 | 15,388 | 15,942 | 20,737 | 22,998 | |||||||||||||||||
| Total non-performing loans | 46,868 | 59,198 | 63,124 | 60,090 | 59,658 | |||||||||||||||||
| Other non-performing assets | ||||||||||||||||||||||
| Foreclosed assets held for sale, net | 18,789 | 17,315 | 15,951 | 17,053 | 17,778 | |||||||||||||||||
| Other non-performing assets | 3 | 3 | 3 | - | - | |||||||||||||||||
| Total other non-performing assets | 18,792 | 17,318 | 15,954 | 17,053 | 17,778 | |||||||||||||||||
| Total non-performing assets | $ | 65,660 | $ | 76,516 | $ | 79,078 | $ | 77,143 | $ | 77,436 | ||||||||||||
| Allowance for loan losses for loans to non-performing loans | 170.99 | % | 135.67 | % | 126.74 | % | 127.09 | % | 124.61 | % | ||||||||||||
| Non-performing loans to total loans | 0.60 | % | 0.75 | % | 0.85 | % | 0.84 | % | 0.85 | % | ||||||||||||
| Non-performing assets to total assets | 0.60 | % | 0.71 | % | 0.81 | % | 0.79 | % | 0.81 | % | ||||||||||||
| (1) Calculation of this metric and the reconciliation to GAAP is included in the schedules accompanying this release. | ||||||||||||||||||||||
| Home BancShares, Inc. | |||||||||||||||||||
| Consolidated Net Interest Margin | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| June 30, 2017 | March 31, 2017 | ||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||
| ASSETS | |||||||||||||||||||
| Earning assets | |||||||||||||||||||
| Interest-bearing balances due from banks | $ | 303,997 | $ | 727 | 0.96 | % | $ | 170,500 | $ | 308 | 0.73 | % | |||||||
| Federal funds sold | 1,427 | 4 | 1.12 | % | 1,182 | 2 | 0.69 | % | |||||||||||
| Investment securities - taxable | 1,256,202 | 6,434 | 2.05 | % | 1,110,166 | 5,478 | 2.00 | % | |||||||||||
| Investment securities - non-taxable - FTE | 346,708 | 4,812 | 5.57 | % | 347,085 | 4,786 | 5.59 | % | |||||||||||
| Loans receivable - FTE | 7,829,615 | 112,902 | 5.78 | % | 7,585,565 | 105,931 | 5.66 | % | |||||||||||
| Total interest-earning assets | 9,737,949 | 124,879 | 5.14 | % | 9,214,498 | 116,505 | 5.13 | % | |||||||||||
| Non-earning assets | 1,055,821 | 984,346 | |||||||||||||||||
| Total assets | $ | 10,793,770 | $ | 10,198,844 | |||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 4,292,389 | $ | 4,313 | 0.40 | % | $ | 4,138,813 | $ | 3,377 | 0.33 | % | |||||||
| Time deposits | 1,443,228 | 2,497 | 0.69 | % | 1,357,300 | 2,109 | 0.63 | % | |||||||||||
| Total interest-bearing deposits | 5,735,617 | 6,810 | 0.48 | % | 5,496,113 | 5,486 | 0.40 | % | |||||||||||
| Federal funds purchased | - | - | 0.00 | % | - | - | 0.00 | % | |||||||||||
| Securities sold under agreement to repurchase | 128,661 | 196 | 0.61 | % | 124,094 | 165 | 0.54 | % | |||||||||||
| FHLB borrowed funds | 1,177,510 | 3,710 | 1.26 | % | 1,373,217 | 3,589 | 1.06 | % | |||||||||||
| Subordinated debentures | 351,659 | 4,795 | 5.47 | % | 60,819 | 439 | 2.93 | % | |||||||||||
| Total interest-bearing liabilities | 7,393,447 | 15,511 | 0.84 | % | 7,054,243 | 9,679 | 0.56 | % | |||||||||||
| Non-interest bearing liabilities | |||||||||||||||||||
| Non-interest bearing deposits | 1,899,865 | 1,716,452 | |||||||||||||||||
| Other liabilities | 47,359 | 56,419 | |||||||||||||||||
| Total liabilities | 9,340,671 | 8,827,114 | |||||||||||||||||
| Shareholders' equity | 1,453,099 | 1,371,730 | |||||||||||||||||
| Total liabilities and shareholders' equity | $ | 10,793,770 | $ | 10,198,844 | |||||||||||||||
| Net interest spread | 4.30 | % | 4.57 | % | |||||||||||||||
| Net interest income and margin - FTE | $ | 109,368 | 4.50 | % | $ | 106,826 | 4.70 | % | |||||||||||
| Home BancShares, Inc. | ||||||||||||||||||||
| Consolidated Net Interest Margin | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Six Months Ended | ||||||||||||||||||||
| June 30, 2017 | June 30, 2016 | |||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||
| ASSETS | ||||||||||||||||||||
| Earning assets | ||||||||||||||||||||
| Interest-bearing balances due from banks | $ | 237,617 | $ | 1,035 | 0.88 | % | $ | 110,842 | $ | 208 | 0.38 | % | ||||||||
| Federal funds sold | 1,305 | 6 | 0.93 | % | 2,279 | 5 | 0.44 | % | ||||||||||||
| Investment securities - taxable | 1,183,588 | 11,912 | 2.03 | % | 1,173,843 | 10,595 | 1.82 | % | ||||||||||||
| Investment securities - non-taxable - FTE | 346,895 | 9,598 | 5.58 | % | 335,539 | 9,209 | 5.52 | % | ||||||||||||
| Loans receivable - FTE | 7,708,264 | 218,833 | 5.72 | % | 6,849,394 | 197,704 | 5.80 | % | ||||||||||||
| Total interest-earning assets | 9,477,669 | 241,384 | 5.14 | % | 8,471,897 | 217,721 | 5.17 | % | ||||||||||||
| Non-earning assets | 1,020,474 | 974,726 | ||||||||||||||||||
| Total assets | $ | 10,498,143 | $ | 9,446,623 | ||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 4,216,025 | $ | 7,690 | 0.37 | % | $ | 3,635,782 | $ | 4,159 | 0.23 | % | ||||||||
| Time deposits | 1,400,501 | 4,606 | 0.66 | % | 1,393,307 | 3,329 | 0.48 | % | ||||||||||||
| Total interest-bearing deposits | 5,616,526 | 12,296 | 0.44 | % | 5,029,089 | 7,488 | 0.30 | % | ||||||||||||
| Federal funds purchased | - | - | 0.00 | % | 470 | 2 | 0.86 | % | ||||||||||||
| Securities sold under agreement to repurchase | 126,390 | 361 | 0.58 | % | 122,373 | 279 | 0.46 | % | ||||||||||||
| FHLB borrowed funds | 1,274,823 | 7,299 | 1.15 | % | 1,385,461 | 6,144 | 0.89 | % | ||||||||||||
| Subordinated debentures | 207,043 | 5,234 | 5.10 | % | 60,826 | 763 | 2.52 | % | ||||||||||||
| Total interest-bearing liabilities | 7,224,782 | 25,190 | 0.70 | % | 6,598,219 | 14,676 | 0.45 | % | ||||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||||
| Non-interest bearing deposits | 1,808,660 | 1,562,725 | ||||||||||||||||||
| Other liabilities | 52,062 | 60,505 | ||||||||||||||||||
| Total liabilities | 9,085,504 | 8,221,449 | ||||||||||||||||||
| Shareholders' equity | 1,412,639 | 1,225,174 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 10,498,143 | $ | 9,446,623 | ||||||||||||||||
| Net interest spread | 4.44 | % | 4.72 | % | ||||||||||||||||
| Net interest income and margin - FTE | $ | 216,194 | 4.60 | % | $ | 203,045 | 4.82 | % | ||||||||||||
| Home BancShares, Inc. | |||||||||||||||||||||||||||||
| Non-GAAP Reconciliations | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||||||||||||||
| (Dollars and shares in thousands, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Jun. 30, | Jun. 30, | ||||||||||||||||||||||
| except per share data) | 2017 | 2017 | 2016 | 2016 | 2016 | 2017 | 2016 | ||||||||||||||||||||||
| EARNINGS EXCLUDING NON-FUNDAMENTAL ITEMS | |||||||||||||||||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 50,097 | $ | 46,856 | $ | 48,590 | $ | 43,620 | $ | 43,509 | $ | 96,953 | $ | 84,936 | |||||||||||||||
| Non-fundamental items | |||||||||||||||||||||||||||||
| Gain on acquisitions | - | (3,807 | ) | - | - | - | (3,807 | ) | - | ||||||||||||||||||||
| Merger and acquisition expenses | 789 | 6,727 | 433 | - | - | 7,516 | - | ||||||||||||||||||||||
| FDIC loss share buy-out expense | - | - | - | 3,849 | - | - | - | ||||||||||||||||||||||
| Reduced provision for loan losses as a result of a significant loan recovery | - | - | (4,457 | ) | - | - | - | - | |||||||||||||||||||||
| Total non-fundamental items | 789 | 2,920 | (4,024 | ) | 3,849 | - | 3,709 | - | |||||||||||||||||||||
| Tax-effect of non-fundamental items(2) | 199 | 2,382 | (1,578 | ) | 1,510 | - | 2,581 | - | |||||||||||||||||||||
| Non-fundamental items after-tax (B) | 590 | 538 | (2,446 | ) | 2,339 | - | 1,128 | - | |||||||||||||||||||||
| Earnings excluding non-fundamental items (C) | $ | 50,687 | $ | 47,394 | $ | 46,144 | $ | 45,959 | $ | 43,509 | $ | 98,081 | $ | 84,936 | |||||||||||||||
| Average diluted shares outstanding (D) | 144,116 | 142,492 | 140,781 | 140,703 | 140,608 | 143,270 | 140,667 | ||||||||||||||||||||||
| GAAP diluted earnings per share: A/D | $ | 0.35 | $ | 0.33 | $ | 0.35 | $ | 0.31 | $ | 0.31 | $ | 0.68 | $ | 0.60 | |||||||||||||||
| Non-fundamental items after-tax: B/D | - | - | (0.02 | ) | 0.02 | - | - | - | |||||||||||||||||||||
| Diluted earnings per common share excluding gain on acquisitions, merger expenses, reduced provision for loan losses as a result of a significant loan recovery & FDIC loss share buy-out expense: C/D | $ | 0.35 | $ | 0.33 | $ | 0.33 | $ | 0.33 | $ | 0.31 | $ | 0.68 | $ | 0.60 | |||||||||||||||
| ANNUALIZED RETURN ON AVERAGE ASSETS | |||||||||||||||||||||||||||||
| Return on average assets: A/G | 1.86 | % | 1.86 | % | 1.98 | % | 1.81 | % | 1.83 | % | 1.86 | % | 1.81 | % | |||||||||||||||
| Return on average assets excluding intangible amortization: (A+C)/(G-H) | 1.96 | % | 1.96 | % | 2.08 | % | 1.91 | % | 1.93 | % | 1.96 | % | 1.91 | % | |||||||||||||||
| Return on average assets excluding intangible amortization, provision for loan losses, merger expenses, gain on acquisitions, reduced provision for loan losses as a result of a significant loan recovery, loss on FDIC loss share buyout and income taxes (Core ROA): (A+B+D+E+F)/(G-H) | 3.19 | % | 3.31 | % | 3.23 | % | 3.43 | % | 3.33 | % | 3.25 | % | 3.30 | % | |||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 50,097 | $ | 46,856 | $ | 48,590 | $ | 43,620 | $ | 43,509 | $ | 96,953 | $ | 84,936 | |||||||||||||||
| Amortization of intangibles (B) | 866 | 804 | 762 | 762 | 763 | 1,670 | 1,608 | ||||||||||||||||||||||
| Amortization of intangibles after-tax (C) | 526 | 489 | 463 | 463 | 464 | 1,015 | 977 | ||||||||||||||||||||||
| Provision for loan losses (D) | 387 | 3,914 | 1,703 | 5,536 | 5,692 | 4,301 | 11,369 | ||||||||||||||||||||||
| Total non-fundamental items (E) | 789 | 2,920 | (4,024 | ) | 3,849 | - | 3,709 | - | |||||||||||||||||||||
| Income tax expense (F) | 30,282 | 25,374 | 29,248 | 25,485 | 26,025 | 55,656 | 50,767 | ||||||||||||||||||||||
| Average assets (G) | 10,793,770 | 10,198,844 | 9,777,148 | 9,602,363 | 9,562,624 | 10,498,143 | 9,446,623 | ||||||||||||||||||||||
| Average goodwill, core deposits & other intangible assets (H) | 442,380 | 415,699 | 396,662 | 397,429 | 398,184 | 429,113 | 398,581 | ||||||||||||||||||||||
| ANNUALIZED RETURN ON AVERAGE COMMON EQUITY | |||||||||||||||||||||||||||||
| Return on average common equity: A/C | 13.83 | % | 13.85 | % | 14.79 | % | 13.62 | % | 14.11 | % | 13.84 | % | 13.94 | % | |||||||||||||||
| Return on average tangible common equity excluding intangible amortization: (A+B)/(C-D) | 20.09 | % | 20.08 | % | 21.45 | % | 20.01 | % | 21.01 | % | 20.09 | % | 20.90 | % | |||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 50,097 | $ | 46,856 | $ | 48,590 | $ | 43,620 | $ | 43,509 | $ | 96,953 | $ | 84,936 | |||||||||||||||
| Amortization of intangibles after-tax (B) | 526 | 489 | 463 | 463 | 464 | 1,015 | 977 | ||||||||||||||||||||||
| Average common equity (C) | 1,453,099 | 1,371,730 | 1,306,571 | 1,274,077 | 1,240,080 | 1,412,639 | 1,225,174 | ||||||||||||||||||||||
| Average goodwill, core deposits & other intangible assets (D) | 442,380 | 415,699 | 396,662 | 397,429 | 398,184 | 429,113 | 398,581 | ||||||||||||||||||||||
| (2) Effective tax rate of 39.225%, adjusted for non-taxable gain on acquisition and non-deductible merger-related costs. | |||||||||||||||||||||||||||||
| Home BancShares, Inc. | ||||||||||||||||||||||||||||||
| Non-GAAP Reconciliations | ||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||
| (Dollars and shares in thousands, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Jun. 30, | Jun. 30, | |||||||||||||||||||||||
| except per share data) | 2017 | 2017 | 2016 | 2016 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
| EFFICIENCY RATIO | ||||||||||||||||||||||||||||||
| Efficiency ratio: ((C-E)/(A+B+D)) | 37.48 | % | 40.76 | % | 36.19 | % | 39.41 | % | 37.52 | % | 39.12 | % | 37.51 | % | ||||||||||||||||
| Core efficiency ratio: ((C-E-G)/(A+B+D-F)) | 37.29 | % | 36.96 | % | 35.97 | % | 36.51 | % | 36.84 | % | 37.13 | % | 36.88 | % | ||||||||||||||||
| Net interest income (A) | $ | 107,352 | $ | 104,815 | $ | 103,207 | $ | 103,653 | $ | 101,041 | $ | 212,167 | $ | 199,098 | ||||||||||||||||
| Non-interest income (B) | 24,417 | 26,470 | 23,828 | 22,014 | 21,772 | 50,887 | 41,209 | |||||||||||||||||||||||
| Non-interest expense (C) | 51,003 | 55,141 | 47,494 | 51,026 | 47,587 | 106,144 | 93,235 | |||||||||||||||||||||||
| Fully taxable equivalent adjustment (D) | 2,016 | 2,011 | 2,108 | 1,869 | 1,974 | 4,027 | 3,947 | |||||||||||||||||||||||
| Amortization of intangibles (E) | 866 | 804 | 762 | 762 | 763 | 1,670 | 1,608 | |||||||||||||||||||||||
| Non-fundamental items: | ||||||||||||||||||||||||||||||
| Non-interest income: | ||||||||||||||||||||||||||||||
| Gain on acquisition | $ | - | $ | 3,807 | $ | - | $ | - | $ | - | $ | 3,807 | $ | - | ||||||||||||||||
| Gain (loss) on OREO | 393 | 121 | 159 | 132 | (941 | ) | 514 | (845 | ) | |||||||||||||||||||||
| Gain (loss) on SBA | 387 | 188 | 645 | 364 | 79 | 575 | 79 | |||||||||||||||||||||||
| Gain on sale of branches, equipment & other assets, net | 431 | (56 | ) | (1 | ) | (86 | ) | 840 | 375 | 787 | ||||||||||||||||||||
| Gain (loss) on securities | 380 | 423 | 644 | - | 15 | 803 | 25 | |||||||||||||||||||||||
| Recoveries on historic losses | - | - | - | - | 925 | - | 925 | |||||||||||||||||||||||
| Total non-fundamental non-interest income (F) | $ | 1,591 | $ | 4,483 | $ | 1,447 | $ | 410 | $ | 918 | $ | 6,074 | $ | 971 | ||||||||||||||||
| Non-interest expense: | ||||||||||||||||||||||||||||||
| Merger Expenses | $ | 789 | $ | 6,727 | $ | 433 | $ | - | $ | - | $ | 7,516 | $ | - | ||||||||||||||||
| FDIC loss share buy-out | - | - | - | 3,849 | - | - | - | |||||||||||||||||||||||
| Vacant properties write-downs | 47 | - | 369 | - | 1,194 | 47 | 1,914 | |||||||||||||||||||||||
| Total non-fundamental non-interest expense (G) | $ | 836 | $ | 6,727 | $ | 802 | $ | 3,849 | $ | 1,194 | $ | 7,563 | $ | 1,914 | ||||||||||||||||
| ANNUALIZED NET INTEREST MARGIN | ||||||||||||||||||||||||||||||
| Net interest margin: A/C | 4.50 | % | 4.70 | % | 4.75 | % | 4.86 | % | 4.83 | % | 4.60 | % | 4.82 | % | ||||||||||||||||
| Net interest margin (non-GAAP): B/D | 4.11 | % | 4.32 | % | 4.31 | % | 4.25 | % | 4.24 | % | 4.21 | % | 4.23 | % | ||||||||||||||||
| Net interest income - FTE (A) | $ | 109,368 | $ | 106,826 | $ | 105,315 | $ | 105,522 | $ | 103,015 | $ | 216,194 | $ | 203,045 | ||||||||||||||||
| Total purchase accounting accretion | 8,497 | 7,652 | 8,659 | 11,937 | 11,017 | 16,145 | 21,747 | |||||||||||||||||||||||
| Net interest income - FTE (non-GAAP) (B) | $ | 100,871 | $ | 99,174 | $ | 96,656 | $ | 93,585 | $ | 91,998 | $ | 200,049 | $ | 181,298 | ||||||||||||||||
| Average interest-earning assets (C) | $ | 9,737,949 | $ | 9,214,498 | $ | 8,824,468 | $ | 8,646,026 | $ | 8,585,955 | $ | 9,477,669 | $ | 8,471,897 | ||||||||||||||||
| Average purchase accounting loan discounts | 104,384 | 102,906 | 104,783 | 115,766 | 135,172 | 101,403 | 138,932 | |||||||||||||||||||||||
| Average interest-earning assets (non-GAAP) (D) | $ | 9,842,333 | $ | 9,317,404 | $ | 8,929,251 | $ | 8,761,792 | $ | 8,721,127 | $ | 9,579,072 | $ | 8,610,829 | ||||||||||||||||
| Home BancShares, Inc. | ||||||||||||||||||||
| Non-GAAP Reconciliations | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||
| (Dollars in thousands) | 2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
| TANGIBLE BOOK VALUE PER COMMON SHARE | ||||||||||||||||||||
| Book value per common share: A/B | $ | 10.32 | $ | 10.05 | $ | 9.45 | $ | 9.22 | $ | 9.01 | ||||||||||
| Tangible book value per common share: (A-C-D)/B | 7.23 | 6.96 | 6.63 | 6.40 | 6.18 | |||||||||||||||
| Total stockholders' equity (A) | $ | 1,476,032 | $ | 1,441,568 | $ | 1,327,490 | $ | 1,296,018 | $ | 1,264,915 | ||||||||||
| End of period common shares outstanding (B) | 143,071 | 143,442 | 140,472 | 140,490 | 140,382 | |||||||||||||||
| Goodwill (C) | $ | 420,941 | $ | 420,941 | $ | 377,983 | $ | 377,983 | $ | 377,983 | ||||||||||
| Core deposit and other intangibles (D) | 21,019 | 21,885 | 18,311 | 19,073 | 19,835 | |||||||||||||||
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | ||||||||||||||||||||
| Equity to assets: B/A | 13.58 | % | 13.45 | % | 13.53 | % | 13.27 | % | 13.20 | % | ||||||||||
| Tangible common equity to tangible assets: (B-C-D)/(A-C-D) | 9.91 | % | 9.72 | % | 9.89 | % | 9.60 | % | 9.44 | % | ||||||||||
| Total assets (A) | $ | 10,872,228 | $ | 10,717,468 | $ | 9,808,465 | $ | 9,764,238 | $ | 9,582,126 | ||||||||||
| Total stockholders' equity (B) | 1,476,032 | 1,441,568 | 1,327,490 | 1,296,018 | 1,264,915 | |||||||||||||||
| Goodwill (C) | 420,941 | 420,941 | 377,983 | 377,983 | 377,983 | |||||||||||||||
| Core deposit and other intangibles (D) | 21,019 | 21,885 | 18,311 | 19,073 | 19,835 | |||||||||||||||