CONWAY, Ark., Oct. 15, 2020 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, released third quarter earnings today.

Highlights of the Third Quarter of 2020:

MetricQ3 2020Q2 2020Q1 2020Q4 2019Q3 2019
Net Income$69.3 million$62.8 million$507,000$73.3 million$72.8 million
Total Revenue (net)$176.1 million$173.7 million$162.7 million$167.8 million$167.7 million
Income (loss) before income taxes$90.4 million$82.1 million($2.4 million)$96.5 million$100.0 million
Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (PPNR) (non-GAAP)(1)$104.4 million$102.7 million$92.2 million$96.5 million$100.0 million
Pre-tax net income to total revenue (net)51.32%47.25%-1.49%57.49%59.60%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)59.28%59.15%56.67%57.49%59.60%
ROA1.66%1.55%0.01%1.94%1.93%
ROA (pre-tax net income, excluding provision for credit losses and unfunded commitment expense) (non-GAAP)(1)2.50%2.53%2.45%2.56%2.65%
ROA, excluding provision for credit losses and unfunded commitment expense
(non-GAAP)(1)
1.91%1.92%1.87%1.94%1.93%
NIM3.92%4.11%4.22%4.24%4.32%
NIM, excluding PPP loans (non-GAAP)(1)3.98%4.16%4.22%4.24%4.32%
Purchase Accounting Accretion$7.0 million$7.0 million$7.6 million$9.1 million$8.5 million
ROE10.97%10.27%0.08%11.71%11.84%
ROTCE (non-GAAP)(1)18.29%17.40%0.14%19.55%20.04%
Diluted Earnings Per Share$0.42$0.38$0.00$0.44$0.44
Non-Performing Assets to Total Assets0.47%0.39%0.44%0.43%0.45%
Common Equity Tier 1 Capital12.6%12.0%11.5%12.4%12.2%
Leverage10.4%10.3%10.8%11.3%10.9%
Tier 1 Capital13.2%12.6%12.1%13.0%12.8%
Total Risk-Based Capital16.9%16.2%15.7%16.4%16.2%
Allowance for Credit Losses to Total Loans2.12%1.99%2.01%0.94%0.97%
Allowance for Credit Losses to Total Loans, excluding PPP loans (non-GAAP)(1)2.29%2.15%2.01%0.94%0.97%

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

“To deliver record setting performance in Pre-Tax, Pre-Provision Net Revenue, while navigating a pandemic, CECL and economic volatility is even beyond my expectations,” said John Allison, Chairman. “I’m now tracking a new measure of profitability that I think is extremely important that I call ‘P5NR = Pre-Tax, Pre-Provision, Profit Percentage,’ which was 59.28% for the third quarter, up from 59.15% in the second quarter,” Allison continued. “While current economic times remain uncertain, one thing remains certain and that is the strong earnings power of Home BancShares,” added Allison.

“PPNR has received increased focus within the industry in recent months. Our ability to reach a record setting $104.4 million PPNR is certainly a highlight of this quarter,” said Tracy French, Centennial Bank President and Chief Executive Officer.

Operating Highlights

Net income increased $6.5 million, or 10.3%, to $69.3 million for the three-month period ended September 30, 2020, from $62.8 million for the three-month period ended June 30, 2020, and income before income taxes (pre-tax net income) increased $8.3 million, or 10.1%, to $90.4 million for the three-month period ended September 30, 2020, from $82.1 million for the three-month period ended June 30, 2020. Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (PPNR) (non-GAAP) for the third quarter of 2020 was a record for the Company. PPNR increased $1.6 million, or 1.6%, to $104.4 million(1) for three-month period ended September 30, 2020, from $102.7 million(1) for the three-month period ended June 30, 2020. Total revenue for the third quarter of 2020 was also a record for the Company. Total revenue increased $2.4 million, or 1.4%, to $176.1 million for the three-month period ended September 30, 2020, from $173.7 million for the three-month period ended June 30, 2020. Pre-tax net income to total revenue (net) increased from 47.25% for the quarter ended June 30, 2020, to 51.32% for the quarter ended September 30, 2020, while pre-tax, pre-provision, profit percentage (“P5NR”) (non-GAAP), increased from 59.15%(1) for the second quarter 2020 to 59.28%(1) for the third quarter 2020.

During the third quarter of 2020, we recorded $14.0 million of total credit loss expense which was primarily due to the Company increasing reserves on deferred loans resulting from ongoing uncertainties related to the COVID-19 pandemic. Due to the inherent risk associated with deferred loans, management recorded an additional reserve on the deferred loans. As of September 30, 2020, we had deferrals of $933.8 million on 330 loans.

Our net interest margin was 3.92% for the three-month period ended September 30, 2020 compared to 4.11% for the three-month period ended June 30, 2020. The yield on loans was 5.24% and 5.43% for the three months ended September 30, 2020 and June 30, 2020, respectively, as average loans decreased from $11.79 billion to $11.76 billion. Additionally, the rate on interest bearing deposits decreased to 0.54% as of September 30, 2020 from 0.64% as of June 30, 2020, with average balances of $9.68 billion and $9.51 billion, respectively. 

As of September 30, 2020, we had $848.7 million of Paycheck Protection Program (PPP) loans. These loans are at 1.00% plus the accretion of the origination fee. Excluding PPP loans, our net interest margin (non-GAAP) for the three-month period ended September 30, 2020 was 3.98%.(1) The PPP loans had an 18-basis point dilutive impact to the yield on loans. The PPP loans were dilutive to the net interest margin by 6 basis points.

The COVID-19 pandemic has created a significant amount of excess liquidity in the market. As a result of this excess liquidity, we had an increase of $173.7 million of average interest-bearing cash balances in the third quarter of 2020 compared to the second quarter of 2020. This excess liquidity diluted the net interest margin by 5 basis points.

During the third quarter of 2020, there was zero event interest income compared to event interest income of $1.5 million for the second quarter of 2020. This lowered the net interest margin by 4 basis points.

Purchase accounting accretion on acquired loans was $7.0 million for the three-month periods ended September 30, 2020 and June 30, 2020 and average purchase accounting loan discounts were $55.8 million and $62.8 million for the three-month periods ended September 30, 2020 and June 30, 2020, respectively. Net amortization of time deposit premiums was $30,000 per quarter and net average remaining time deposit premiums were $176,000 and $206,000 for the three-month periods ended September 30, 2020 and June 30, 2020, respectively.

The net interest margin experienced 14 basis points of noise for the three-months ended September 30, 2020, compared to the three months ended June 30, 2020 primarily resulting from a 5 basis point decline for excess liquidity, a 4 basis point decline for event interest income, a 3 basis point decline for investment premium amortizations, a 1 basis point decline for PPP loans, and a 1 basis point decline for adjustments as a result of the conversion of LH Finance, which we acquired on February 29, 2020.

Net interest income on a fully taxable equivalent basis decreased $2.4 million, or 1.6%, to $147.7 million for the three-month period ended September 30, 2020, from $150.1 million for the three-month period ended June 30, 2020. This decrease in net interest income for the three-month period ended September 30, 2020 was the result of a $4.8 million decrease in interest income, which was partially offset by a $2.4 million decrease in interest expense. The $4.8 million decrease in interest income was primarily the result of a $4.2 million decrease in loan interest income and a $625,000 net decrease in investment income. The $2.4 million decrease in interest expense was primarily the result of a $1.9 million decrease in interest expense on deposits and a $421,000 decrease in interest expense on FHLB borrowings.

The Company reported $30.0 million of non-interest income for the third quarter of 2020. The most important components of the third quarter non-interest income were $10.2 million from mortgage lending income, $8.5 million from other service charges and fees, $4.9 million from service charges on deposits accounts, $3.4 million from FHLB, FRB, FNBB & other equity investments and $2.6 million from other income. Non-interest income for the third quarter of 2020 included $3.2 million in dividends related to a special dividend from an equity investment and a $1.4 million adjustment for the decline in fair market value of marketable securities.

Mortgage lending income increased $4.0 million, or 64.3%, to $10.2 million for the three-month period ended September 30, 2020, from $6.2 million for the three-month period ended June 30, 2020. The housing market continues to benefit from the current low interest rate environment. The Company experienced an increase in secondary market loan sales of $50 million for the third quarter of 2020 compared to the second quarter of 2020. In addition, reduced hedging expenses led to higher margins on secondary market loan sales.

Non-interest expense for the third quarter of 2020 was $71.7 million. The most important components of the third quarter non-interest expense were $41.5 million from salaries and employee benefits, $15.7 million in other expense and $9.6 million in occupancy and equipment expenses. For the third quarter of 2020, our efficiency ratio was 39.56% compared to 44.93% for the second quarter of 2020.
__________________
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release

Financial Condition

Total loans receivable were $11.69 billion at September 30, 2020 compared to $11.96 billion at June 30, 2020. Total deposits were $12.94 billion at September 30, 2020 compared to $13.18 billion at June 30, 2020. Total assets were $16.55 billion at September 30, 2020 compared to $16.90 billion at June 30, 2020.

During the third quarter 2020, the Company experienced approximately $264.3 million in organic loan decline. Centennial CFG experienced $72.4 million of organic loan decline and had loans of $1.68 billion at September 30, 2020. Our legacy footprint experienced $191.9 million in organic loan decline during the quarter.

Non-performing loans to total loans was 0.63% as of September 30, 2020 compared to 0.50% as of June 30, 2020. Non-performing assets to total assets increased from 0.39% as of June 30, 2020 to 0.47% as of September 30, 2020. For the third quarter of 2020, net charge-offs were $4.1 million compared to net charge-offs of $2.0 million for the second quarter of 2020.

Non-performing loans at September 30, 2020 were $23.3 million, $40.2 million, $489,000, $4.4 million and $5.4 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $73.8 million. Non-performing assets at September 30, 2020 were $24.8 million, $43.3 million, $523,000, $4.4 million and $5.4 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $78.4 million.

The Company’s allowance for credit losses on loans was $248.2 million at September 30, 2020, or 2.12% of total loans, compared to the allowance for loan losses of $238.3 million, or 1.99% of total loans, at June 30, 2020. The Company’s allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.29%(1) at September 30, 2020. As of September 30, 2020 and June 30, 2020, the Company’s allowance for credit losses on loans and allowance for loan losses was 336.4% and 397.9% of its total non-performing loans, respectively. The increase in the allowance for credit losses at September 30, 2020 is primarily attributable to the ongoing uncertainties of the COVID-19 pandemic.

Stockholders’ equity was $2.54 billion at September 30, 2020 compared to $2.49 billion at June 30, 2020, an increase of approximately $48.7 million. The increase in stockholders’ equity is primarily associated with the $47.8 million increase in retained earnings. Book value per common share was $15.38 at September 30, 2020 compared to $15.09 at June 30, 2020. Tangible book value per common share (non-GAAP) was $9.30(1) at September 30, 2020 compared to $8.99(1) at June 30, 2020, an increase of 13.72% on an annualized basis.   
____________________
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release

Branches

The Company currently has 77 branches in Arkansas, 78 branches in Florida, 5 branches in Alabama and one branch in New York City.

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, October 15, 2020. We encourage all participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10147893/d8db6749be. 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: 10147893, which will be available until October 22, 2020 at 10:59 p.m. CT (11:59 ET). Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com under “Investor Relations” for 12 months.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures--including net income (earnings), as adjusted; pre-tax net income, excluding provision for credit losses and unfunded commitment expense; pre-tax, pre-provision, profit percentage; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets (pre-tax net income, excluding provision for credit losses and unfunded commitment expense); return on average assets, excluding provision for credit losses and unfunded commitment expense; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity, as adjusted; efficiency ratio, as adjusted; net interest margin, excluding PPP loans; yield on loans, excluding PPP loans; allowance for credit losses to total loans, excluding PPP loans; tangible book value per common share and tangible common equity to tangible assets--to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions (including the effect of the PPP loans) that management believes are not indicative of the Company’s primary business operating results. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

General

This release may contain forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors include, but are not limited to, the following:  economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment; disruptions, uncertainties and related effects on our business and operations as a result of the ongoing coronavirus (COVID-19) pandemic and measures that have been or may be implemented or imposed in response to the pandemic, including the impact on, among other things, credit quality and liquidity; the ability to identify, complete and successfully integrate new acquisitions; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations, including those in response to the COVID-19 pandemic; technological changes and cybersecurity risks; the effects of changes in accounting policies and practices, including from the adoption of the current expected credit loss (CECL) model on January 1, 2020; changes in governmental monetary and fiscal policies; political instability; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; changes in the assumptions used in making the forward-looking statements; and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 26, 2020, and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, filed with the SEC on August 5, 2020.

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

FOR MORE INFORMATION CONTACT:
Donna Townsell
Director of Investor Relations
Home BancShares, Inc.
(501) 328-4625

 
 
Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)
                
  Sep. 30,  Jun. 30,  Mar. 31,  Dec. 31,  Sep. 30, 
(In thousands) 2020  2020  2020  2019  2019 
                     
ASSETS                    
                     
Cash and due from banks $144,197  $185,047  $147,200  $168,914  $171,492 
Interest-bearing deposits with other banks  899,140   1,030,609   424,235   321,687   270,804 
Cash and cash equivalents  1,043,337   1,215,656   571,435   490,601   442,296 
Federal funds sold  -   -   -   -   1,650 
Investment securities - available-for-sale, net of allowance for credit losses  2,361,900   2,238,005   2,098,000   2,083,838   2,087,508 
Loans receivable  11,691,470   11,955,743   11,384,982   10,869,710   10,771,946 
Allowance for credit losses  (248,224)  (238,340)  (228,923)  (102,122)  (104,304)
Loans receivable, net  11,443,246   11,717,403   11,156,059   10,767,588   10,667,642 
Bank premises and equipment, net  280,364   279,498   281,795   280,103   277,966 
Foreclosed assets held for sale  4,322   6,292   8,204   9,143   8,639 
Cash value of life insurance  102,989   102,443   103,120   102,562   102,003 
Accrued interest receivable  72,599   80,274   50,295   45,086   47,557 
Deferred tax asset, net  75,167   74,333   77,110   44,301   53,436 
Goodwill  973,025   973,025   973,025   958,408   958,408 
Core deposit and other intangibles  32,149   33,569   35,055   36,572   38,136 
Other assets  160,660   174,908   177,634   213,845   216,694 
Total assets $16,549,758  $16,895,406  $15,531,732  $15,032,047  $14,901,935 
                     
LIABILITIES AND STOCKHOLDERS' EQUITY                    
                     
Liabilities                    
Deposits:                    
Demand and non-interest-bearing $3,207,967  $3,413,727  $2,425,036  $2,367,091  $2,394,207 
Savings and interest-bearing transaction accounts  8,011,200   7,970,979   7,149,644   6,933,964   6,620,616 
Time deposits  1,718,299   1,793,230   1,940,234   1,977,328   2,032,547 
Total deposits  12,937,466   13,177,936   11,514,914   11,278,383   11,047,370 
Federal funds purchased  -   -   -   5,000   50,000 
Securities sold under agreements to repurchase  158,447   162,858   126,884   143,727   157,038 
FHLB and other borrowed funds  403,428   531,432   951,436   621,439   691,443 
Accrued interest payable and other liabilities  139,485   161,095   138,479   102,410   117,332 
Subordinated debentures  370,133   369,939   369,748   369,557   369,363 
Total liabilities  14,008,959   14,403,260   13,101,461   12,520,516   12,432,546 
                     
Stockholders' equity                    
Common stock  1,652   1,652   1,651   1,664   1,669 
Capital surplus  1,520,103   1,518,631   1,516,151   1,537,091   1,542,858 
Retained earnings  980,699   932,856   891,498   956,555   904,980 
Accumulated other comprehensive (loss) income  38,345   39,007   20,971   16,221   19,882 
Total stockholders' equity  2,540,799   2,492,146   2,430,271   2,511,531   2,469,389 
Total liabilities and stockholders' equity $16,549,758  $16,895,406  $15,531,732  $15,032,047  $14,901,935 
                     


Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
     
  Quarter Ended
 Nine Months Ended
  Sep. 30,
  Jun. 30,
 Mar. 31,
  Dec. 31,
  Sep. 30,
 Sep. 30,
 Sep. 30,
 
(In thousands) 2020  2020 2020  2019  2019 2020 2019 
                          
Interest income                         
Loans $154,787  $158,996 $158,148  $161,211  $167,470 $471,931 $497,134 
Investment securities                         
Taxable  7,227   8,693  9,776   9,707   10,343  25,696  31,699 
Tax-exempt  4,367   3,698  3,114   3,260   3,193  11,179  9,755 
Deposits - other banks  252   211  1,116   949   1,068  1,579  4,239 
Federal funds sold  -   -  21   5   8  21  29 
                          
Total interest income  166,633   171,598  172,175   175,132   182,082  510,406  542,856 
                          
Interest expense                         
Interest on deposits  13,200   15,116  24,198   26,823   29,566  52,514  87,281 
Federal funds purchased  -   -  13   33   21  13  21 
FHLB borrowed funds  2,235   2,656  2,698   2,686   3,683  7,589  14,523 
Securities sold under agreements to repurchase  237   260  462   652   628  959  1,892 
Subordinated debentures  4,823   4,899  5,079   5,155   5,207  14,801  15,705 
                          
Total interest expense  20,495   22,931  32,450   35,349   39,105  75,876  119,422 
                          
Net interest income  146,138   148,667  139,725   139,783   142,977  434,530  423,434 
                          
Provision for credit loss - loans  14,000   11,441  76,672   -   -  102,113  1,325 
Provision for credit loss - acquired loans  -   -  9,309   -   -  9,309  - 
Provision for credit loss - investment securities  -   -  842   -   -  842  - 
Total credit loss expense  14,000   11,441  86,823   -   -  112,264  1,325 
Net interest income after                         
provision for credit losses  132,138   137,226  52,902   139,783   142,977  322,266  422,109 
                          
Non-interest income                         
Service charges on deposit accounts  4,910   4,296  6,631   6,778   6,492  15,837  19,152 
Other service charges and fees  8,539   7,666  6,056   10,636   8,710  22,261  23,450 
Trust fees  378   397  438   390   382  1,213  1,176 
Mortgage lending income  10,177   6,196  2,621   3,801   4,610  18,994  10,502 
Insurance commissions  271   533  678   551   603  1,482  1,727 
Increase in cash value of life insurance  548   558  560   562   714  1,666  2,190 
Dividends from FHLB, FRB, FNBB & other  3,433   230  7,842   1,952   1,101  11,505  5,755 
Gain on SBA loans  -   -  341   686   291  341  887 
(Loss) gain on branches, equipment and other assets, net  (27)  54  82   35   12  109  (38)
Gain on OREO, net  470   235  277   159   334  982  598 
Gain (loss) on securities, net  -   -  -   (2)  -  -  - 
Fair value adjustment for marketable securities  (1,350)  919  (5,818)  -   -  (6,249) - 
Other income  2,602   3,939  3,219   2,481   1,500  9,760  6,088 
                          
Total non-interest income  29,951   25,023  22,927   28,029   24,749  77,901  71,487 
                          
Non-interest expense                         
Salaries and employee benefits  41,511   40,088  39,329   38,446   39,919  120,928  115,731 
Occupancy and equipment  9,566   10,172  8,873   8,729   9,047  28,611  26,723 
Data processing expense  4,921   4,614  4,326   4,294   4,059  13,861  11,867 
Other operating expenses  15,714   25,298  25,721   19,873   14,739  66,733  50,124 
                          
Total non-interest expense  71,712   80,172  78,249   71,342   67,764  230,133  204,445 
                          
Income (loss) before income taxes   90,377   82,077  (2,420)  96,470   99,962  170,034  289,151 
Income tax expense (benefit)  21,057   19,250  (2,927)  23,208   27,199  37,380  72,874 
Net income $69,320  $62,827 $507  $73,262  $72,763 $132,654 $216,277 
                          


Home BancShares, Inc.
Selected Financial Information
(Unaudited)
         
  Quarter Ended
 Nine Months Ended
  Sep. 30,
 Jun. 30,
 Mar. 31,
 Dec. 31,
 Sep. 30,
 Sep. 30,
 Sep. 30,
(Dollars and shares in thousands, except per share data) 2020
  2020  2020
 2019  2019
 2020
 2019
                             
PER SHARE DATA                            
                             
Diluted earnings per common share $0.42  $0.38  $-  $0.44  $0.44  $0.80  $1.29 
Diluted earnings per common share, as adjusted, excluding special                            
dividend from equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax (non-GAAP)(1)  0.47   0.47   0.43   0.44   0.44   1.37   1.30 
Basic earnings per common share  0.42   0.38   -   0.44   0.44   0.80   1.29 
Dividends per share - common  0.1300   0.1300   0.1300   0.1300   0.1300   0.3900   0.3800 
Book value per common share  15.38   15.09   14.72   15.10   14.80   15.38   14.80 
Tangible book value per common share (non-GAAP)(1)  9.30   8.99   8.61   9.12   8.83   9.30   8.83 
                             
                             
STOCK INFORMATION                            
                             
Average common shares outstanding  165,200   165,163   166,014   166,696   167,178   165,458   168,178 
Average diluted shares outstanding  165,200   165,163   166,014   166,696   167,178   165,458   168,178 
End of period common shares outstanding  165,163   165,206   165,148   166,373   166,860   165,163   166,860 
                             
                             
ANNUALIZED PERFORMANCE METRICS                            
                             
Return on average assets  1.66%  1.55%  0.01%  1.94%  1.93%  1.11%  1.92%
Return on average assets excluding special dividend from equity                            
investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROA, as adjusted) (non-GAAP)(1)  1.88%  1.93%  1.88%  1.94%  1.96%  1.90%  1.94%
Return on average assets excluding intangible amortization (non-GAAP)(1)  1.80%  1.68%  0.05%  2.12%  2.10%  1.21%  2.09%
Return on average common equity  10.97%  10.27%  0.08%  11.71%  11.84%  7.13%  12.12%
Return on average common equity excluding special dividend from                            
equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROE, as adjusted) (non-GAAP)(1)  12.39%  12.77%  11.48%  11.68%  12.08%  12.22%  12.27%
Return on average tangible common equity (non-GAAP)(1)  18.29%  17.40%  0.14%  19.55%  20.04%  11.96%  20.84%
Return on average tangible common equity excluding intangible amortization (non-GAAP)(1)  18.56%  17.70%  0.44%  19.86%  20.36%  12.26%  21.18%
Return on average tangible common equity excluding special                            
dividend from equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROTCE, as adjusted) (non-GAAP)(1)  20.66%  21.63%  19.22%  19.51%  20.45%  20.50%  21.10%
         
         
(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
  Sep. 30,
 Jun. 30,
 Mar. 31,
 Dec. 31,
 Sep. 30,
  Sep. 30,
 Sep. 30,
(Dollars and shares in thousands, except per share data) 2020
 2020
 2020
 2019
 2019
   2020   2019 
                              
                              
Efficiency ratio  39.56%  44.93%  46.82%  41.26%  39.16%   43.69%  40.03%
Efficiency ratio, as adjusted (non-GAAP)(1)  40.08%  39.38%  41.37%  41.14%  40.60%   40.25%  40.35%
Net interest margin - FTE  3.92%  4.11%  4.22%  4.24%  4.32%   4.08%  4.30%
Net interest margin - FTE, excluding PPP loans (non-GAAP)(1)  3.98%  4.16%  4.22%  4.24%  4.32%   4.12%  4.30%
Fully taxable equivalent adjustment $1,576  $1,434  $1,227  $1,322  $1,247   $4,237  $3,933 
Total revenue (net)  176,089   173,690   162,652   167,812   167,726    512,431   494,921 
Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (PPNR) (non-GAAP)(1)  104,377   102,732   92,178   96,470   99,962    299,287   290,476 
Pre-tax net income to total revenue (net)  51.32%  47.25%  -1.49%  57.49%  59.60%   33.18%  58.42%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)  59.28%  59.15%  56.67%  57.49%  59.60%   58.41%  58.69%
Net income, excluding provision for credit losses and unfunded commitment expense  79,661   78,084   70,382   73,262   72,763    228,127   217,260 
Return on average assets (pre-tax net income, excluding provision for credit losses and unfunded commitment expense) (non-GAAP)(1)  2.50%  2.53%  2.45%  2.56%  2.65%   2.50%  2.58%
Return on average assets, excluding provision for credit losses and unfunded commitment expense (non-GAAP)(1)  1.91%  1.92%  1.87%  1.94%  1.93%   1.90%  1.93%
Total purchase accounting accretion  6,957   7,036   7,647   9,133   8,462    21,640   26,757 
Average purchase accounting loan discounts  55,835   62,822   69,365   91,869   112,623    62,662   122,121 
                              
                              
OTHER OPERATING EXPENSES                             
                              
Advertising $902  $795  $1,226  $1,340  $1,201   $2,923  $3,347 
Merger and acquisition expenses  -   -   711   -   -    711   - 
Amortization of intangibles  1,420   1,486   1,517   1,565   1,587    4,423   4,760 
Electronic banking expense  2,426   2,054   1,715   1,870   1,901    6,195   5,655 
Directors' fees  429   412   424   396   380    1,265   1,206 
Due from bank service charges  259   239   223   289   272    721   792 
FDIC and state assessment  1,607   1,846   1,548   1,635   (532)   5,001   2,833 
Hurricane expense  -   -   -   -   -    -   897 
Insurance  766   711   746   790   698    2,223   2,056 
Legal and accounting  1,235   1,278   919   1,633   1,414    3,432   3,384 
Other professional fees  1,661   1,735   3,226   3,189   1,906    6,622   7,024 
Operating supplies  460   553   535   469   511    1,548   1,552 
Postage  328   313   327   327   320    968   939 
Telephone  321   310   324   312   289    955   898 
Unfunded commitments  -   9,214   7,775   -   -    16,989   - 
Other expense  3,900   4,352   4,505   6,058   4,792    12,757   14,781 
                              
Total other operating expenses $15,714  $25,298  $25,721  $19,873  $14,739   $66,733  $50,124 
                              
                              
(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)
                
  Sep. 30,  Jun. 30,  Mar. 31,  Dec. 31,  Sep. 30, 
(Dollars in thousands) 2020  2020  2020  2019  2019 
                
BALANCE SHEET RATIOS               
                
Total loans to total deposits 90.37% 90.73% 98.87% 96.38% 97.51%
Common equity to assets 15.35% 14.75% 15.65% 16.71% 16.57%
Tangible common equity to tangible assets (non-GAAP)(1) 9.88% 9.35% 9.79% 10.80% 10.59%
                
                
LOANS RECEIVABLE               
                
Real estate               
Commercial real estate loans               
Non-farm/non-residential$4,342,212 $4,325,795 $4,357,007 $4,412,769 $4,375,970 
Construction/land development 1,748,857  1,818,151  1,892,394  1,776,689  1,827,454 
Agricultural 89,476  105,554  89,630  88,400  87,087 
Residential real estate loans               
Residential 1-4 family 1,665,628  1,730,716  1,775,610  1,819,221  1,808,099 
Multifamily residential 491,380  482,635  411,960  488,278  498,079 
Total real estate 8,337,553  8,462,851  8,526,601  8,585,357  8,596,689 
Consumer 883,568  851,344  852,174  511,909  469,741 
Commercial and industrial 2,161,818  2,228,816  1,759,752  1,528,003  1,479,724 
Agricultural 85,365  80,023  64,582  63,644  90,343 
Other 223,166  332,709  181,873  180,797  135,449 
Loans receivable$11,691,470 $11,955,743 $11,384,982 $10,869,710 $10,771,946 
                
Paycheck Protection Program (PPP) loans (included in total loans receivable) 848,745  848,628  -  -  - 
                
ALLOWANCE FOR CREDIT LOSSES               
                
Balance, beginning of period$238,340 $228,923 $102,122 $104,304 $106,066 
Impact of adopting ASC 326 -  -  43,988  -  - 
Allowance for credit losses on acquired loans -  -  357  -  - 
Loans charged off 4,599  2,582  4,265  2,631  2,302 
Recoveries of loans previously charged off 483  558  740  449  540 
Net loans (recovered)/charged off 4,116  2,024  3,525  2,182  1,762 
Provision for credit loss - loans 14,000  11,441  76,672  -  - 
Provision for credit loss - acquired loans -  -  9,309  -  - 
Total credit loss expense excluding provision for credit loss - investment securities 14,000  11,441  85,981  -  - 
Balance, end of period$248,224 $238,340 $228,923 $102,122 $104,304 
                
Net (recoveries) charge-offs to average total loans 0.14% 0.07% 0.13% 0.08% 0.06%
Allowance for credit losses to total loans 2.12% 1.99% 2.01% 0.94% 0.97%
Allowance for credit losses to total loans, excluding PPP loans 2.29% 2.15% 2.01% 0.94% 0.97%
                
NON-PERFORMING ASSETS               
                
Non-performing loans               
Non-accrual loans$65,148 $52,074 $52,131 $47,607 $48,640 
Loans past due 90 days or more 8,635  7,824  7,760  7,238  9,964 
Total non-performing loans 73,783  59,898  59,891  54,845  58,604 
Other non-performing assets               
Foreclosed assets held for sale, net 4,322  6,292  8,204  9,143  8,639 
Other non-performing assets 247  247  447  447  447 
Total other non-performing assets 4,569  6,539  8,651  9,590  9,086 
Total non-performing assets$78,352 $66,437 $68,542 $64,435 $67,690 
                
Allowance for credit losses for loans to non-performing loans 336.42% 397.91% 382.23% 186.20% 177.98%
Non-performing loans to total loans 0.63% 0.50% 0.53% 0.50% 0.54%
Non-performing assets to total assets 0.47% 0.39% 0.44% 0.43% 0.45%
                
                
(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, 2020 June 30, 2020
  Average
 Income/
 Yield/
 Average
 Income/
 Yield/
(Dollars in thousands) Balance
 Expense
 Rate
 Balance
 Expense
 Rate
                   
ASSETS                  
Earning assets                  
Interest-bearing balances due from banks $926,754 $252 0.11% $753,093 $211 0.11%
Federal funds sold  124  - 0.00%  -  - 0.00%
Investment securities - taxable  1,618,058  7,227 1.78%  1,673,334  8,693 2.09%
Investment securities - non-taxable - FTE  672,067  5,731 3.39%  461,640  4,890 4.26%
Loans receivable - FTE  11,758,143  154,999 5.24%  11,790,398  159,238 5.43%
Total interest-earning assets  14,975,146  168,209 4.47%  14,678,465  173,032 4.74%
Non-earning assets  1,619,349        1,640,741      
Total assets $16,594,495       $16,319,206      
                   
LIABILITIES AND SHAREHOLDERS' EQUITY                  
Liabilities                  
Interest-bearing liabilities                  
Savings and interest-bearing transaction accounts $7,937,412 $6,651 0.33% $7,651,259 $7,818 0.41%
Time deposits  1,745,279  6,549 1.49%  1,855,626  7,298 1.58%
Total interest-bearing deposits  9,682,691  13,200 0.54%  9,506,885  15,116 0.64%
Securities sold under agreement to repurchase  157,172  237 0.60%  154,628  260 0.68%
FHLB borrowed funds  464,799  2,235 1.91%  652,354  2,656 1.64%
Subordinated debentures  370,038  4,823 5.19%  369,846  4,899 5.33%
Total interest-bearing liabilities  10,674,700  20,495 0.76%  10,683,713  22,931 0.86%
Non-interest bearing liabilities                  
Non-interest bearing deposits  3,259,501        3,038,490      
Other liabilities  146,502        137,062      
Total liabilities  14,080,703        13,859,265      
Shareholders' equity  2,513,792        2,459,941      
Total liabilities and shareholders' equity $16,594,495       $16,319,206      
Net interest spread       3.71%       3.88%
Net interest income and margin - FTE    $147,714 3.92%    $150,101 4.11%
                   


Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
        
  Nine Months Ended
  September 30, 2020 September 30, 2019
  Average Income/ Yield/
 Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate
 Balance Expense Rate
                   
ASSETS                  
Earning assets                  
Interest-bearing balances due from banks $671,231 $1,579 0.31% $261,419 $4,239 2.17%
Federal funds sold  1,775  21 1.58%  1,510  29 2.57%
Investment securities - taxable  1,665,900  25,696 2.06%  1,647,781  31,699 2.57%
Investment securities - non-taxable - FTE  503,253  14,712 3.90%  380,115  12,741 4.48%
Loans receivable - FTE  11,519,706  472,635 5.48%  10,993,686  498,081 6.06%
Total interest-earning assets  14,361,865  514,643 4.79%  13,284,511  546,789 5.50%
Non-earning assets  1,655,973        1,772,341      
Total assets $16,017,838       $15,056,852      
                   
LIABILITIES AND SHAREHOLDERS' EQUITY                  
Liabilities                  
Interest-bearing liabilities                  
Savings and interest-bearing transaction accounts $7,544,763 $30,272 0.54% $6,634,809 $59,788 1.20%
Time deposits  1,847,833  22,242 1.61%  1,954,182  27,493 1.88%
Total interest-bearing deposits  9,392,596  52,514 0.75%  8,588,991  87,281 1.36%
Federal funds purchased  2,080  13 0.83%  1,618  21 1.74%
Securities sold under agreement to repurchase  150,020  959 0.85%  146,277  1,892 1.73%
FHLB borrowed funds  579,805  7,589 1.75%  945,351  14,523 2.05%
Subordinated debentures  369,846  14,801 5.35%  369,078  15,705 5.69%
Total interest-bearing liabilities  10,494,347  75,876 0.97%  10,051,315  119,422 1.59%
Non-interest bearing liabilities                  
Non-interest bearing deposits  2,904,159        2,508,082      
Other liabilities  134,281        110,715      
Total liabilities  13,532,787        12,670,112      
Shareholders' equity  2,485,051        2,386,740      
Total liabilities and shareholders' equity $16,017,838       $15,056,852      
Net interest spread       3.82%       3.91%
Net interest income and margin - FTE    $438,767 4.08%    $427,367 4.30%
                   


Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
          
  Quarter Ended
  Nine Months Ended
 
(Dollars and shares in thousands, Sep. 30,
 Jun. 30,
 Mar. 31,
 Dec. 31,
 Sep. 30,
  Sep. 30,
 Sep. 30,
 
except per share data) 2020 2020 2020 2019 2019  2020 2019 
                 
          
EARNINGS, AS ADJUSTED         
          
GAAP net income available to common shareholders (A) $69,320 $62,827 $507 $73,262 $72,763  $132,654 $216,277 
Pre-tax adjustments         
Special dividend from equity investment  (3,181) -  (7,004) (861) -   (10,185) (2,134)
Provision for credit losses  14,000  11,441  86,823  -  -   112,264  1,325 
Fair value adjustment for marketable securities  1,350  (919) 5,818  -  -   6,249  - 
Branch write-off expense  -  981  -  -  -   981  - 
Unfunded commitment expense  -  9,214  7,775  -  -   16,989  - 
Outsourced special project expense  -  -  1,092  631  -   1,092  900 
Merger and acquisition expenses  -  -  711  -  -   711  - 
FDIC Small Bank Assessment Credit  -  -  -  -  (2,291)  -  (2,291)
Hurricane expenses  -  -  -  -  -   -  897 
Total pre-tax adjustments  12,169  20,717  95,215  (230) (2,291)  128,101  (1,303)
Tax-effect of adjustments  3,181  5,414  24,884  (59) (592)  33,479  (336)
Adjustments after-tax  8,988  15,303  70,331  (171) (1,699)   94,622  (967)
Florida tax savings  -  -  -  -  (497)  -  - 
BOLI redemption tax  -  -  -  -  3,667   -  3,667 
Total adjustments after-tax (B)  8,988  15,303  70,331  (171) 1,471    94,622  2,700 
Earnings, as adjusted (C) $78,308 $78,130 $70,838 $73,091 $74,234  $227,276 $218,977 
                        
          
Average diluted shares outstanding (D)  165,200  165,163  166,014  166,696  167,178   165,458  168,178 
          
GAAP diluted earnings per share: (A/D) $0.42 $0.38 $- $0.44 $0.44  $0.80 $1.29 
Adjustments after-tax: (B/D)  0.05  0.09  0.43  -  -   0.57  0.01 
Diluted earnings per common share, as adjusted, excluding special dividend from equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (C/D) $0.47 $0.47 $0.43 $0.44 $0.44  $1.37 $1.30 
                        
                
          
ANNUALIZED RETURN ON AVERAGE ASSETS         
          
Return on average assets: (A/G)  1.66%  1.55%  0.01%  1.94%  1.93%   1.11%  1.92% 
Return on average assets excluding special dividend from equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROA, as adjusted) ((A+F)/G)  1.88%  1.93%  1.88%  1.94%  1.96%   1.90%  1.94% 
Return on average assets (pre-tax net income, excluding provision for credit losses and unfunded commitment expense): (B/G)  2.50%  2.53%  2.45%  2.56%  2.65%   2.50%  2.58% 
Return on average assets, excluding provision for credit losses and unfunded commitment expense: (C/G)  1.91%  1.92%  1.87%  1.94%  1.93%   1.90%  1.93% 
Return on average assets excluding intangible amortization: ((A+E)/(G-H))  1.80%  1.68%  0.05%  2.12%  2.10%   1.21%  2.09% 
          
GAAP net income available to common shareholders (A) $69,320 $62,827 $507 $73,262 $72,763  $132,654 $216,277 
Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (B) $104,377 $102,732 $92,178 $96,470 $99,962  $299,287 $290,476 
Net income, excluding provision for credit losses and unfunded commitment expense (C) $79,661 $78,084 $70,382 $73,262 $72,763   $228,127 $217,260 
Amortization of intangibles (D)  1,420  1,486  1,517  1,565  1,587   4,423  4,760 
Amortization of intangibles after-tax (E)  1,049  1,098  1,121  1,161  1,177   3,268  3,531 
Adjustments after-tax (F)  8,988  15,303  70,331  (171) 1,471   94,622  2,700 
Average assets (G)  16,594,495  16,319,206  15,133,475  14,944,368  14,993,232   16,017,838  15,056,852 
Average goodwill, core deposits & other intangible assets (H)  1,005,864  1,007,307  999,004  995,721  997,309   1,004,065  998,889 
          


Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
          
  Quarter Ended
  Nine Months Ended
 
(Dollars and shares in thousands, Sep. 30,
 Jun. 30,
 Mar. 31,
 Dec. 31
 Sep. 30,
  Sep. 30,
 Sep. 30,
 
except per share data) 2020 2020 2020 2019 2019  2020 2019 
                 
          
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY         
          
Return on average common equity: (A/D)  10.97%  10.27%  0.08%  11.71%  11.84%   7.13%  12.12% 
Return on average common equity excluding special dividend from equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROE, as adjusted) ((A+C)/D)  12.39%  12.77%  11.48%  11.68%  12.08%   12.22%  12.27% 
Return on average tangible common equity: (A/(D-E))  18.29%  17.40%  0.14%  19.55%  20.04%   11.96%  20.84% 
Return on average tangible common equity excluding intangible amortization: (B/(D-E))  18.56%  17.70%  0.44%  19.86%  20.36%   12.26%  21.18% 
Return on average tangible common equity excluding special dividend from equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROTCE, as adjusted) ((A+C)/(D-E))  20.66%  21.63%  19.22%  19.51%  20.45%   20.50%  21.10% 
          
GAAP net income available to common shareholders (A) $69,320 $62,827 $507 $73,262 $72,763  $132,654 $216,277 
Earnings excluding intangible amortization (B)  70,369  63,925  1,628  74,423  73,940   135,922  219,808 
Adjustments after-tax (C)  8,988  15,303  70,331  (171) 1,471   94,622  2,700 
Average common equity (D)  2,513,792  2,459,941  2,481,104  2,482,406  2,437,820   2,485,051  2,386,740 
Average goodwill, core deposits & other intangible assets (E)  1,005,864  1,007,307  999,004  995,721  997,309   1,004,065  998,889 
          
          
EFFICIENCY RATIO         
          
Efficiency ratio: ((C-E)/(A+B+D))  39.56% 44.93% 46.82% 41.26% 39.16%  43.69% 40.03%
Efficiency ratio, as adjusted: ((C-E-G)/(A+B+D-F))  40.08% 39.38% 41.37% 41.14% 40.60%  40.25% 40.35%
         -  - 
Net interest income (A) $146,138 $148,667 $139,725 $139,783 $142,977  $434,530 $423,434 
Non-interest income (B)  29,951  25,023  22,927  28,029  24,749   77,901  71,487 
Non-interest expense (C)  71,712  80,172  78,249  71,342  67,764   230,133  204,445 
Fully taxable equivalent adjustment (D)  1,576  1,434  1,227  1,322  1,247   4,237  3,933 
Amortization of intangibles (E)  1,420  1,486  1,517  1,565  1,587   4,423  4,760 
          
Adjustments:         
Non-interest income:         
Special dividend from equity investment $3,181 $- $7,004 $861 $-  $10,185 $2,134 
Fair value adjustment for marketable securities  (1,350) 919  (5,818) -  -   (6,249) - 
Gain (loss) on OREO  470  235  277  159  334   982  598 
Gain (loss) on branches, equipment and other assets, net  (27) 54  82  35  12   109  (38)
Gain (loss) on securities  -  -  -  (2) -   -  - 
Total non-interest income adjustments (F) $2,274 $1,208 $1,545 $1,053 $346  $5,027 $2,694 
                        
          
Non-interest expense:         
Branch write-off expense $- $981 $- $- $-  $981 $- 
Unfunded commitment expense  -  9,214  7,775  -  -   16,989  - 
FDIC Small Bank Assessment Credit  -  -  -  -  (2,291)  -  (2,291)
Merger Expenses  -  -  711  -  -   711  - 
Hurricane damage expense  -  -  -  -  -   -  897 
Outsourced special project expense  -  -  1,092  631  -   1,092  900 
Total non-interest expense adjustments (G) $- $10,195 $9,578 $631 $(2,291) $19,773 $(494)
                        
          
          
ANNUALIZED NET INTEREST MARGIN         
          
Net interest margin: A/C  3.92%  4.11%  4.22%  4.24%  4.32%   4.08%  4.30% 
Net interest margin, excluding PPP loans (non-GAAP): B/D  3.98%  4.16%  4.22%  4.24%  4.32%   4.12%  4.30% 
          
Net interest income - FTE (A) $147,714 $150,101 $140,952 $141,105 $144,224  $438,767 $427,367 
PPP loan interest & discount accretion income  5,943  4,450  -  -  -   10,393  - 
                        
Net interest income - FTE, excluding PPP loans (non-GAAP) (B) $141,771 $145,651 $140,952 $141,105 $144,224  $428,374 $427,367 
                        
          
Average interest-earning assets (C) $14,975,146 $14,678,465 $13,428,700 $13,188,508 $13,235,774  $14,361,865 $13,284,511 
Average PPP loans  821,977  585,946  -  -  -   470,595  - 
Average interest-earning assets, excluding PPP loans (non-GAAP) (D) $14,153,169 $14,092,519 $13,428,700 $13,188,508 $13,235,774  $13,891,270 $13,284,511 
                        
          


Home BancShares, Inc. 
Non-GAAP Reconciliations 
(Unaudited) 
           
  Quarter Ended
  Nine Months Ended
  
(Dollars and shares in thousands, Sep. 30,
 Jun. 30,
 Mar. 31,
 Dec. 31
 Sep. 30,
  Sep. 30,
 Sep. 30,
  
except per share data) 2020 2020 2020 2019 2019  2020 2019  
                  
           
Pre-tax net income $90,377 $82,077 $(2,420)$96,470 $99,962  $170,034 $289,151  
Provision for credit losses  14,000  11,441  86,823  -  -   112,264  1,325  
Unfunded commitment expense  -  9,214  7,775  -  -   16,989  -  
Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (PPNR) (A) $104,377 $102,732 $92,178 $96,470 $99,962  $299,287 $290,476  
                          
           
Total revenue (net) (B)  176,089  173,690  162,652  167,812  167,726   512,431  494,921  
           
Pre-tax net income to total revenue (net)  51.32%  47.25%  -1.49% 57.49%  59.60%   33.18%  58.42%  
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net))  59.28%  59.15%  56.67%  57.49%  59.60%   58.41%  58.69%  
           
  Quarter Ended
     
        
           
  Sep. 30,Jun. 30,Mar. 31,Dec. 31,Sep. 30,    
                     
(Dollars in thousands)  2020  2020  2020  2019  2019     
                     
           
TANGIBLE BOOK VALUE PER COMMON SHARE          
           
Book value per common share: (A/B) $15.38 $15.09 $14.72 $15.10 $14.80     
Tangible book value per common share: ((A-C-D)/B)  9.30  8.99  8.61  9.12  8.83     
           
Total stockholders' equity (A) $2,540,799 $2,492,146 $2,430,271 $2,511,531 $2,469,389     
End of period common shares outstanding (B)  165,163  165,206  165,148  166,373  166,860     
Goodwill (C)  973,025  973,025  973,025  958,408  958,408     
Core deposit and other intangibles (D)  32,149  33,569  35,055  36,572  38,136     
           
           
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS          
           
Equity to assets: (B/A)  15.35%  14.75%  15.65%  16.71%  16.57%     
Tangible common equity to tangible assets: ((B-C-D)/(A-C-D))  9.88%  9.35%  9.79%  10.80%  10.59%     
           
Total assets (A) $16,549,758 $16,895,406 $15,531,732 $15,032,047 $14,901,935     
Total stockholders' equity (B)  2,540,799  2,492,146  2,430,271  2,511,531  2,469,389     
Goodwill (C)  973,025  973,025  973,025  958,408  958,408     
Core deposit and other intangibles (D)  32,149  33,569  35,055  36,572  38,136