CONWAY, Ark., July 15, 2021 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, released quarterly earnings today.
Highlights of the Second Quarter of 2021:
| Metric | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
| Net Income | $79.1 million | $91.6 million | $81.8 million | $69.3 million | $62.8 million |
| Total Revenue (net) | $172.4 million | $193.4 million | $181.9 million | $176.1 million | $173.7 million |
| Income (loss) before income taxes | $104.1 million | $120.5 million | $107.7 million | $90.4 million | $82.1 million |
| Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) | $99.4 million | $120.5 million | $107.7 million | $104.4 million | $102.7 million |
| Pre-tax net income to total revenue (net) | 60.42% | 62.32% | 59.19% | 51.32% | 47.25% |
| P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) | 57.66% | 62.32% | 59.19% | 59.28% | 59.15% |
| ROA | 1.81% | 2.22% | 1.97% | 1.66% | 1.55% |
| NIM | 3.61% | 4.02% | 4.00% | 3.92% | 4.11% |
| NIM, excluding PPP loans (non-GAAP)(1) | 3.54% | 3.87% | 3.97% | 3.98% | 4.16% |
| Purchase Accounting Accretion | $5.8 million | $5.5 million | $5.7 million | $7.0 million | $7.0 million |
| ROE | 11.92% | 14.15% | 12.72% | 10.97% | 10.27% |
| ROTCE (non-GAAP)(1) | 19.12% | 22.90% | 20.96% | 18.29% | 17.40% |
| Diluted Earnings Per Share | $0.48 | $0.55 | $0.50 | $0.42 | $0.38 |
| Non-Performing Assets to Total Assets | 0.35% | 0.38% | 0.48% | 0.47% | 0.39% |
| Common Equity Tier 1 Capital | 15.0% | 14.3% | 13.4% | 12.6% | 12.0% |
| Leverage | 10.9% | 11.1% | 10.8% | 10.4% | 10.3% |
| Tier 1 Capital | 15.6% | 14.9% | 14.0% | 13.2% | 12.6% |
| Total Risk-Based Capital | 19.5% | 18.8% | 17.8% | 16.9% | 16.2% |
| Allowance for Credit Losses to Total Loans | 2.36% | 2.25% | 2.19% | 2.12% | 1.99% |
| Allowance for Credit Losses to Total Loans, excluding PPP loans (non-GAAP)(1) | 2.47% | 2.40% | 2.33% | 2.28% | 2.14% |
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
“An annualized look at gross revenue and pre-tax, pre-provision, net income (PPNR) shows us on a steady track for the last four years,” said John Allison, Chairman. “Net income for the six-month period ended June 30, 2021 was $170.7 million, or $1.03 earnings per share, which is a record for the Company,” Allison stated. “The continued stable performance our team delivers each quarter brings both a sense of pride and comfort during these unstable economic times,” Allison continued.
“Jamie Dimon recently stated that JP Morgan Chase is effectively ‘stockpiling cash’ with plans to be patient because he believes in being prepared for higher rates and more inflation,” quoted Tracy French, Centennial Bank President and Chief Executive Officer. “One of the hardest things we do is maintain our discipline, and although loan growth might seem a little slow, we too plan to be patient as we do not intend to sell the future of our Company. We won’t be one to reach out in the market for short term gain to create long term pain,” French added.
Operating Highlights
Net income for the three-month period ended June 30, 2021 was $79.1 million, or $0.48 earnings per share. Net income for the six-month period ended June 30, 2021 was $170.7 million, or $1.03 earnings per share, which is a record for the Company.
During the second quarter of 2021, the Company recorded a negative provision for unfunded commitments of $4.8 million, or $0.02 per share. This was primarily due to a single commercial & industrial loan for which a reserve was no longer considered necessary due to the borrower’s current cash flow position. The Company determined that an additional provision for credit losses on loans was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2021.
Our net interest margin was 3.61% for the three-month period ended June 30, 2021 compared to 4.02% for the three-month period ended March 31, 2021. The yield on loans was 5.40% and 5.56% for the three months ended June 30, 2021 and March 31, 2021, respectively, as average loans decreased from $11.02 billion to $10.54 billion. Additionally, the rate on interest bearing deposits decreased to 0.26% as of June 30, 2021 from 0.33% as of March 31, 2021, with average balances of $9.81 billion and $9.55 billion, respectively.
As of June 30, 2021, we had $473.9 million of Paycheck Protection Program (PPP) loans outstanding. These loans are at 1.00% plus the accretion of the origination fee. Excluding PPP loans, our net interest margin (non-GAAP) for the three-month period ended June 30, 2021 was 3.54%.(1) The PPP loans were accretive to the net interest margin by 7 basis points for the three-month period ended June 30, 2021 compared to 15 basis points for the three-month period ended March 31, 2021. This was primarily due to approximately $243.2 million of the Company’s PPP loans being forgiven during the second quarter of 2021 as well as the acceleration of deferred fees for the loans that were forgiven. The $243.2 million of PPP loans forgiven during the second quarter of 2021 were partially offset by $70.7 million in new PPP loan originations and funding during the second quarter of 2021. The deferred fee income decreased from $10.4 million to $6.3 million for the three-month periods ended March 31, 2021 and June 30, 2021, respectively.
The effects of the COVID-19 pandemic continued to create a significant amount of excess liquidity in the market. As a result of this excess liquidity, we had an increase of $966.6 million of average interest-bearing cash balances in the second quarter of 2021 compared to the first quarter of 2021. This excess liquidity diluted the net interest margin by 23 basis points for the three-month period ended June 30, 2021.
Purchase accounting accretion on acquired loans was $5.8 million and $5.5 million and average purchase accounting loan discounts were $38.6 million and $43.9 million for the three-month periods ended June 30, 2021 and March 31, 2021, respectively. Net amortization of time deposit premiums was $30,000 per quarter and net average remaining time deposit premiums were $85,000 and $115,000 for the three-month periods ended June 30, 2021 and March 31, 2021, respectively.
Net interest income on a fully taxable equivalent basis was $143.1 million for the three-month period ended June 30, 2021 and $149.9 million for the three-month period ended March 31, 2021. This decrease in net interest income for the three-month period ended June 30, 2021 was the result of an $8.2 million decrease in interest income, which was partially offset by a $1.3 million decrease in interest expense. The $8.2 million decrease in interest income was primarily the result of a $9.2 million decrease in loan interest income, which was partially offset by a $727,000 net increase in investment income and a $297,000 increase in interest-bearing balances due from banks. The $1.3 million decrease in interest expense was primarily the result of a decrease in interest expense on deposits.
The Company reported $31.1 million of non-interest income for the second quarter of 2021. The most important components of the second quarter non-interest income were $9.7 million from other service charges and fees, $6.2 million from mortgage lending income, $5.1 million from service charges on deposit accounts, $3.0 million from other income, $2.6 million from dividends from FHLB, FRB, FNBB and other, and a $1.3 million adjustment for the increase in fair market value of marketable securities. Included in the $2.6 million in dividends from FHLB, FRB, FNBB and other were $2.2 million in special dividends from equity investments. The Company is still currently involved in these investments; however, past performance does not guarantee future performance.
Non-interest expense for the second quarter of 2021 was $73.0 million. The most important components of the second quarter non-interest expense were $42.5 million from salaries and employee benefits, $15.6 million in other expense and $9.0 million in occupancy and equipment expenses. For the second quarter of 2021, our efficiency ratio was 41.08%.
______________________________
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
Financial Condition
Total loans receivable were $10.20 billion at June 30, 2021 compared to $10.78 billion at March 31, 2021. Total deposits were $13.89 billion at June 30, 2021 compared to $13.51 billion at March 31, 2021. Total assets were $17.63 billion at June 30, 2021 compared to $17.24 billion at March 31, 2021.
During the second quarter 2021, the Company experienced approximately $579.3 million in loan decline. Centennial CFG experienced $41.1 million of organic loan growth and had loans of $1.56 billion at June 30, 2021. Our legacy footprint experienced $447.9 million in organic loan decline and $172.5 million in PPP loan decline during the quarter.
Non-performing loans to total loans was 0.58% as of June 30, 2021 compared to 0.59% as of March 31, 2021. Non-performing assets to total assets decreased from 0.38% as of March 31, 2021 to 0.35% as of June 30, 2021. Net charge-offs were $2.5 million for both the first and second quarter of 2021.
Non-performing loans at June 30, 2021 were $22.4 million, $31.8 million, $380,000, $1.6 million and $2.7 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $58.9 million. Non-performing assets at June 30, 2021 were $23.2 million, $32.9 million, $424,000, $1.6 million and $2.8 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $60.9 million.
The Company’s allowance for credit losses on loans was $240.5 million at June 30, 2021, or 2.36% of total loans, compared to the allowance for credit losses of $242.9 million, or 2.25% of total loans, at March 31, 2021. The Company’s allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.47%(1) at June 30, 2021. As of June 30, 2021 and March 31, 2021, the Company’s allowance for credit losses on loans was 407.99% and 383.47% of its total non-performing loans, respectively.
Stockholders’ equity was $2.70 billion at June 30, 2021 compared to $2.65 billion at March 31, 2021, an increase of approximately $51.0 million. The increase in stockholders’ equity was primarily associated with the $56.0 million increase in retained earnings and a $9.7 million increase in accumulated other comprehensive income, which was partially offset by net stock repurchases and share-based compensation activity of $14.7 million. Book value per common share was $16.39 at June 30, 2021 compared to $16.02 at March 31, 2021. Tangible book value per common share (non-GAAP) was $10.31(1) at June 30, 2021 compared to $9.95(1) at March 31, 2021, an increase of 14.51% on an annualized basis.
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(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
Branches
The Company currently has 76 branches in Arkansas, 78 branches in Florida, 5 branches in Alabama and one branch in New York City.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, July 15, 2021. We encourage all participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10157552/e986b17690. Callers who pre-register will be given dial-in instructions and a unique PIN to gain immediate access to the live call. Participants may pre-register now, or at any time prior to the call, and will immediately receive simple instructions via email. The Home BancShares conference call will also be automatically scheduled as an event in your Outlook calendar.
Those without internet access or unable to pre-register may dial in and listen to the live call by calling 1-877-508-9586 and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-344-7529, Passcode: 10157552, which will be available until July 22, 2021 at 10:59 p.m. CT (11:59 ET). Internet access to the call will be available live or in recorded version on the Company’s website at www.homebancshares.com under “Investor Relations” for 12 months.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures–including net income (earnings), as adjusted; pre-tax, pre-provision, net income (PPNR); pre-tax, pre-provision, profit percentage; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets excluding intangible amortization; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity excluding intangible amortization; return on average tangible common equity, as adjusted; efficiency ratio, as adjusted; net interest margin, excluding PPP loans; allowance for credit losses to total loans, excluding PPP loans; tangible book value per common share and tangible common equity to tangible assets–to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions (including the effect of the PPP loans) that management believes are not indicative of the Company’s primary business operating results. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
General
This release may contain forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors include, but are not limited to, the following: economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment; disruptions, uncertainties and related effects on our business and operations as a result of the ongoing coronavirus (COVID-19) pandemic and measures that have been or may be implemented or imposed in response to the pandemic, including the impact on, among other things, credit quality and liquidity; the ability to identify, complete and successfully integrate new acquisitions; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations, including those in response to the COVID-19 pandemic; technological changes and cybersecurity risks; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; changes in the assumptions used in making the forward-looking statements; and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021.
Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, South Alabama and New York City. The Company’s common stock is traded through the NASDAQ Global Select Market under the symbol “HOMB.”
FOR MORE INFORMATION CONTACT:
Donna Townsell
Director of Investor Relations
Home BancShares, Inc.
(501) 328-4625
Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||
| (In thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 182,226 | $ | 218,814 | $ | 242,173 | $ | 144,197 | $ | 185,047 | ||||||||||
| Interest-bearing deposits with other banks | 2,759,027 | 2,259,734 | 1,021,615 | 899,140 | 1,030,609 | |||||||||||||||
| Cash and cash equivalents | 2,941,253 | 2,478,548 | 1,263,788 | 1,043,337 | 1,215,656 | |||||||||||||||
| Investment securities - available-for-sale, net of | ||||||||||||||||||||
| allowance for credit losses | 3,053,712 | 2,539,123 | 2,473,781 | 2,361,900 | 2,238,005 | |||||||||||||||
| Loans receivable | 10,199,175 | 10,778,493 | 11,220,721 | 11,691,470 | 11,955,743 | |||||||||||||||
| Allowance for credit losses | (240,451 | ) | (242,932 | ) | (245,473 | ) | (248,224 | ) | (238,340 | ) | ||||||||||
| Loans receivable, net | 9,958,724 | 10,535,561 | 10,975,248 | 11,443,246 | 11,717,403 | |||||||||||||||
| Bank premises and equipment, net | 278,502 | 278,620 | 278,614 | 280,364 | 279,498 | |||||||||||||||
| Foreclosed assets held for sale | 1,969 | 3,004 | 4,420 | 4,322 | 6,292 | |||||||||||||||
| Cash value of life insurance | 104,132 | 103,599 | 103,519 | 102,989 | 102,443 | |||||||||||||||
| Accrued interest receivable | 48,725 | 55,495 | 60,528 | 72,599 | 80,274 | |||||||||||||||
| Deferred tax asset, net | 72,273 | 77,145 | 70,249 | 75,167 | 74,333 | |||||||||||||||
| Goodwill | 973,025 | 973,025 | 973,025 | 973,025 | 973,025 | |||||||||||||||
| Core deposit and other intangibles | 27,886 | 29,307 | 30,728 | 32,149 | 33,569 | |||||||||||||||
| Other assets | 166,991 | 166,814 | 164,904 | 160,660 | 174,908 | |||||||||||||||
| Total assets | $ | 17,627,192 | $ | 17,240,241 | $ | 16,398,804 | $ | 16,549,758 | $ | 16,895,406 | ||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand and non-interest-bearing | $ | 4,076,570 | $ | 3,859,722 | $ | 3,266,753 | $ | 3,207,967 | $ | 3,413,727 | ||||||||||
| Savings and interest-bearing transaction accounts | 8,744,900 | 8,477,208 | 8,212,240 | 8,011,200 | 7,970,979 | |||||||||||||||
| Time deposits | 1,069,871 | 1,175,664 | 1,246,797 | 1,718,299 | 1,793,230 | |||||||||||||||
| Total deposits | 13,891,341 | 13,512,594 | 12,725,790 | 12,937,466 | 13,177,936 | |||||||||||||||
| Securities sold under agreements to repurchase | 150,540 | 162,929 | 168,931 | 158,447 | 162,858 | |||||||||||||||
| FHLB and other borrowed funds | 400,000 | 400,000 | 400,000 | 403,428 | 531,432 | |||||||||||||||
| Accrued interest payable and other liabilities | 118,415 | 148,999 | 127,999 | 139,485 | 161,095 | |||||||||||||||
| Subordinated debentures | 370,707 | 370,515 | 370,326 | 370,133 | 369,939 | |||||||||||||||
| Total liabilities | 14,931,003 | 14,595,037 | 13,793,046 | 14,008,959 | 14,403,260 | |||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||
| Common stock | 1,645 | 1,651 | 1,651 | 1,652 | 1,652 | |||||||||||||||
| Capital surplus | 1,501,615 | 1,516,286 | 1,520,617 | 1,520,103 | 1,518,631 | |||||||||||||||
| Retained earnings | 1,163,810 | 1,107,818 | 1,039,370 | 980,699 | 932,856 | |||||||||||||||
| Accumulated other comprehensive income | 29,119 | 19,449 | 44,120 | 38,345 | 39,007 | |||||||||||||||
| Total stockholders’ equity | 2,696,189 | 2,645,204 | 2,605,758 | 2,540,799 | 2,492,146 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 17,627,192 | $ | 17,240,241 | $ | 16,398,804 | $ | 16,549,758 | $ | 16,895,406 | ||||||||||
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Jun. 30, | Jun. 30, | ||||||||||||||||||||||
| (In thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | 2021 | 2020 | |||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||||
| Loans | $ | 141,684 | $ | 150,917 | $ | 153,407 | $ | 154,787 | $ | 158,996 | $ | 292,601 | $ | 317,144 | ||||||||||||||
| Investment securities | ||||||||||||||||||||||||||||
| Taxable | 7,185 | 6,253 | 6,900 | 7,227 | 8,693 | 13,438 | 18,469 | |||||||||||||||||||||
| Tax-exempt | 4,905 | 5,071 | 4,979 | 4,367 | 3,698 | 9,976 | 6,812 | |||||||||||||||||||||
| Deposits - other banks | 707 | 410 | 270 | 252 | 211 | 1,117 | 1,327 | |||||||||||||||||||||
| Federal funds sold | - | - | - | - | - | - | 21 | |||||||||||||||||||||
| Total interest income | 154,481 | 162,651 | 165,556 | 166,633 | 171,598 | 317,132 | 343,773 | |||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||
| Interest on deposits | 6,434 | 7,705 | 10,596 | 13,200 | 15,116 | 14,139 | 39,314 | |||||||||||||||||||||
| Federal funds purchased | - | - | - | - | - | - | 13 | |||||||||||||||||||||
| FHLB borrowed funds | 1,896 | 1,875 | 1,917 | 2,235 | 2,656 | 3,771 | 5,354 | |||||||||||||||||||||
| Securities sold under agreements to repurchase | 107 | 190 | 208 | 237 | 260 | 297 | 722 | |||||||||||||||||||||
| Subordinated debentures | 4,792 | 4,793 | 4,810 | 4,823 | 4,899 | 9,585 | 9,978 | |||||||||||||||||||||
| Total interest expense | 13,229 | 14,563 | 17,531 | 20,495 | 22,931 | 27,792 | 55,381 | |||||||||||||||||||||
| Net interest income | 141,252 | 148,088 | 148,025 | 146,138 | 148,667 | 289,340 | 288,392 | |||||||||||||||||||||
| Provision for credit losses - loans | - | - | - | 14,000 | 11,441 | - | 98,264 | |||||||||||||||||||||
| Provision for credit loss - unfunded commitments | (4,752 | ) | - | - | - | 9,214 | (4,752 | ) | 16,989 | |||||||||||||||||||
| Total credit loss expense | (4,752 | ) | - | - | 14,000 | 20,655 | (4,752 | ) | 115,253 | |||||||||||||||||||
| Net interest income after provision for credit losses | 146,004 | 148,088 | 148,025 | 132,138 | 128,012 | 294,092 | 173,139 | |||||||||||||||||||||
| Non-interest income | ||||||||||||||||||||||||||||
| Service charges on deposit accounts | 5,116 | 5,002 | 5,544 | 4,910 | 4,296 | 10,118 | 10,927 | |||||||||||||||||||||
| Other service charges and fees | 9,659 | 7,608 | 8,425 | 8,539 | 7,666 | 17,267 | 13,722 | |||||||||||||||||||||
| Trust fees | 444 | 522 | 420 | 378 | 397 | 966 | 835 | |||||||||||||||||||||
| Mortgage lending income | 6,202 | 8,167 | 10,071 | 10,177 | 6,196 | 14,369 | 8,817 | |||||||||||||||||||||
| Insurance commissions | 478 | 492 | 366 | 271 | 533 | 970 | 1,211 | |||||||||||||||||||||
| Increase in cash value of life insurance | 537 | 502 | 534 | 548 | 558 | 1,039 | 1,118 | |||||||||||||||||||||
| Dividends from FHLB, FRB, FNBB & other | 2,646 | 8,609 | 967 | 3,433 | 230 | 11,255 | 8,072 | |||||||||||||||||||||
| Gain on SBA loans | 1,149 | - | 304 | - | - | 1,149 | 341 | |||||||||||||||||||||
| (Loss) gain on branches, equipment and | ||||||||||||||||||||||||||||
| other assets, net | (23 | ) | (29 | ) | 217 | (27 | ) | 54 | (52 | ) | 136 | |||||||||||||||||
| Gain on OREO, net | 619 | 401 | 150 | 470 | 235 | 1,020 | 512 | |||||||||||||||||||||
| Gain on securities, net | - | 219 | - | - | - | 219 | - | |||||||||||||||||||||
| Fair value adjustment for marketable securities | 1,250 | 5,782 | 4,271 | (1,350 | ) | 919 | 7,032 | (4,899 | ) | |||||||||||||||||||
| Other income | 3,043 | 8,001 | 2,616 | 2,602 | 3,939 | 11,044 | 7,158 | |||||||||||||||||||||
| Total non-interest income | 31,120 | 45,276 | 33,885 | 29,951 | 25,023 | 76,396 | 47,950 | |||||||||||||||||||||
| Non-interest expense | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 42,462 | 42,059 | 43,022 | 41,511 | 40,088 | 84,521 | 79,417 | |||||||||||||||||||||
| Occupancy and equipment | 9,042 | 9,237 | 9,801 | 9,566 | 10,172 | 18,279 | 19,045 | |||||||||||||||||||||
| Data processing expense | 5,893 | 5,870 | 5,171 | 4,921 | 4,614 | 11,763 | 8,940 | |||||||||||||||||||||
| Other operating expenses | 15,585 | 15,700 | 16,247 | 15,714 | 16,084 | 31,285 | 34,030 | |||||||||||||||||||||
| Total non-interest expense | 72,982 | 72,866 | 74,241 | 71,712 | 70,958 | 145,848 | 141,432 | |||||||||||||||||||||
| Income (loss) before income taxes | 104,142 | 120,498 | 107,669 | 90,377 | 82,077 | 224,640 | 79,657 | |||||||||||||||||||||
| Income tax expense (benefit) | 25,072 | 28,896 | 25,875 | 21,057 | 19,250 | 53,968 | 16,323 | |||||||||||||||||||||
| Net income | $ | 79,070 | $ | 91,602 | $ | 81,794 | $ | 69,320 | $ | 62,827 | $ | 170,672 | $ | 63,334 | ||||||||||||||
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
| (Dollars and shares in thousands, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Jun. 30, | Jun. 30, | |||||||||||||||||||||
| except per share data) | 2021 | 2021 | 2020 | 2020 | 2020 | 2021 | 2020 | |||||||||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||||||||||
| Diluted earnings per common share | $ | 0.48 | $ | 0.55 | $ | 0.50 | $ | 0.42 | $ | 0.38 | $ | 1.03 | $ | 0.38 | ||||||||||||||
| Diluted earnings per common share, as adjusted, | ||||||||||||||||||||||||||||
| excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses (non-GAAP)(1) | 0.46 | 0.47 | 0.48 | 0.41 | 0.38 | 0.93 | 0.39 | |||||||||||||||||||||
| Basic earnings per common share | 0.48 | 0.55 | 0.50 | 0.42 | 0.38 | 1.03 | 0.38 | |||||||||||||||||||||
| Dividends per share - common | 0.14 | 0.14 | 0.14 | 0.13 | 0.13 | 0.28 | 0.26 | |||||||||||||||||||||
| Book value per common share | 16.39 | 16.02 | 15.78 | 15.38 | 15.09 | 16.39 | 15.09 | |||||||||||||||||||||
| Tangible book value per common share (non-GAAP)(1) | 10.31 | 9.95 | 9.70 | 9.30 | 8.99 | 10.31 | 8.99 | |||||||||||||||||||||
| STOCK INFORMATION | ||||||||||||||||||||||||||||
| Average common shares outstanding | 164,781 | 165,257 | 165,119 | 165,200 | 165,163 | 165,018 | 165,588 | |||||||||||||||||||||
| Average diluted shares outstanding | 165,226 | 165,446 | 165,119 | 165,200 | 165,163 | 165,314 | 165,588 | |||||||||||||||||||||
| End of period common shares outstanding | 164,488 | 165,141 | 165,095 | 165,163 | 165,206 | 164,488 | 165,206 | |||||||||||||||||||||
| ANNUALIZED PERFORMANCE METRICS | ||||||||||||||||||||||||||||
| Return on average assets | 1.81 | % | 2.22 | % | 1.97 | % | 1.66 | % | 1.55 | % | 2.01 | % | 0.81 | % | ||||||||||||||
| Return on average assets excluding fair value adjustment | ||||||||||||||||||||||||||||
| for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROA, as adjusted) (non-GAAP)(1) | 1.75 | % | 1.88 | % | 1.90 | % | 1.63 | % | 1.55 | % | 1.81 | % | 0.82 | % | ||||||||||||||
| Return on average assets excluding intangible | ||||||||||||||||||||||||||||
| amortization (non-GAAP)(1) | 1.95 | % | 2.39 | % | 2.13 | % | 1.80 | % | 1.68 | % | 2.16 | % | 0.90 | % | ||||||||||||||
| Return on average common equity | 11.92 | % | 14.15 | % | 12.72 | % | 10.97 | % | 10.27 | % | 13.02 | % | 5.16 | % | ||||||||||||||
| Return on average common equity excluding fair value | ||||||||||||||||||||||||||||
| adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROE, as adjusted) (non-GAAP)(1) | 11.54 | % | 11.96 | % | 12.23 | % | 10.76 | % | 10.28 | % | 11.75 | % | 5.20 | % | ||||||||||||||
| Return on average tangible common equity | ||||||||||||||||||||||||||||
| (non-GAAP)(1) | 19.12 | % | 22.90 | % | 20.96 | % | 18.29 | % | 17.40 | % | 20.98 | % | 8.68 | % | ||||||||||||||
| Return on average tangible common equity excluding | ||||||||||||||||||||||||||||
| intangible amortization (non-GAAP)(1) | 19.38 | % | 23.16 | % | 21.22 | % | 18.56 | % | 17.70 | % | 21.24 | % | 8.98 | % | ||||||||||||||
| Return on average tangible common equity excluding fair | ||||||||||||||||||||||||||||
| value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROTCE, as adjusted) (non-GAAP)(1) | 18.51 | % | 19.35 | % | 20.15 | % | 17.93 | % | 17.41 | % | 18.92 | % | 8.75 | % | ||||||||||||||
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Jun. 30, | Jun. 30, | ||||||||||||||||||||||
| (Dollars in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | 2021 | 2020 | |||||||||||||||||||||
| Efficiency ratio | 41.08 | % | 36.60 | % | 39.64 | % | 39.56 | % | 39.67 | % | 38.71 | % | 40.83 | % | ||||||||||||||
| Efficiency ratio, as adjusted (non-GAAP)(1) | 42.06 | % | 40.67 | % | 40.67 | % | 40.08 | % | 39.38 | % | 41.35 | % | 40.34 | % | ||||||||||||||
| Net interest margin - FTE | 3.61 | % | 4.02 | % | 4.00 | % | 3.92 | % | 4.11 | % | 3.81 | % | 4.17 | % | ||||||||||||||
| Net interest margin - FTE, excluding PPP loans | ||||||||||||||||||||||||||||
| (non-GAAP)(1) | 3.54 | % | 3.87 | % | 3.97 | % | 3.98 | % | 4.16 | % | 3.70 | % | 4.19 | % | ||||||||||||||
| Fully taxable equivalent adjustment | $ | 1,810 | $ | 1,857 | $ | 1,778 | $ | 1,576 | $ | 1,434 | $ | 3,667 | $ | 2,661 | ||||||||||||||
| Total revenue (net) | 172,372 | 193,364 | 181,910 | 176,089 | 173,690 | 365,736 | 336,342 | |||||||||||||||||||||
| Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) | 99,390 | 120,498 | 107,669 | 104,377 | 102,732 | 219,888 | 194,910 | |||||||||||||||||||||
| Pre-tax net income to total revenue (net) | 60.42 | % | 62.32 | % | 59.19 | % | 51.32 | % | 47.25 | % | 61.42 | % | 23.68 | % | ||||||||||||||
| P5NR (Pre-tax, pre-provision, profit percentage) | ||||||||||||||||||||||||||||
| (PPNR to total revenue (net)) (non-GAAP)(1) | 57.66 | % | 62.32 | % | 59.19 | % | 59.28 | % | 59.15 | % | 60.12 | % | 57.95 | % | ||||||||||||||
| Total purchase accounting accretion | 5,797 | 5,485 | 5,736 | 6,957 | 7,036 | 11,282 | 14,683 | |||||||||||||||||||||
| Average purchase accounting loan discounts | 38,568 | 43,940 | 49,563 | 55,835 | 62,822 | 41,218 | 66,105 | |||||||||||||||||||||
| OTHER OPERATING EXPENSES | ||||||||||||||||||||||||||||
| Advertising | $ | 1,194 | $ | 1,046 | $ | 1,076 | $ | 902 | $ | 795 | $ | 2,240 | $ | 2,021 | ||||||||||||||
| Merger and acquisition expenses | - | - | - | - | - | - | 711 | |||||||||||||||||||||
| Amortization of intangibles | 1,421 | 1,421 | 1,421 | 1,420 | 1,486 | 2,842 | 3,003 | |||||||||||||||||||||
| Electronic banking expense | 2,616 | 2,238 | 2,282 | 2,426 | 2,054 | 4,854 | 3,769 | |||||||||||||||||||||
| Directors’ fees | 414 | 383 | 359 | 429 | 412 | 797 | 836 | |||||||||||||||||||||
| Due from bank service charges | 273 | 249 | 254 | 259 | 239 | 522 | 462 | |||||||||||||||||||||
| FDIC and state assessment | 1,108 | 1,363 | 1,493 | 1,607 | 1,846 | 2,471 | 3,394 | |||||||||||||||||||||
| Insurance | 787 | 781 | 795 | 766 | 711 | 1,568 | 1,457 | |||||||||||||||||||||
| Legal and accounting | 1,058 | 846 | 790 | 1,235 | 1,278 | 1,904 | 2,197 | |||||||||||||||||||||
| Other professional fees | 1,796 | 1,613 | 1,528 | 1,661 | 1,735 | 3,409 | 4,961 | |||||||||||||||||||||
| Operating supplies | 465 | 487 | 440 | 460 | 553 | 952 | 1,088 | |||||||||||||||||||||
| Postage | 292 | 338 | 315 | 328 | 313 | 630 | 640 | |||||||||||||||||||||
| Telephone | 365 | 346 | 347 | 321 | 310 | 711 | 634 | |||||||||||||||||||||
| Other expense | 3,796 | 4,589 | 5,147 | 3,900 | 4,352 | 8,385 | 8,857 | |||||||||||||||||||||
| Total other operating expenses | $ | 15,585 | $ | 15,700 | $ | 16,247 | $ | 15,714 | $ | 16,084 | $ | 31,285 | $ | 34,030 | ||||||||||||||
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||
| (Dollars in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||
| BALANCE SHEET RATIOS | ||||||||||||||||||||
| Total loans to total deposits | 73.42 | % | 79.77 | % | 88.17 | % | 90.37 | % | 90.73 | % | ||||||||||
| Common equity to assets | 15.30 | % | 15.34 | % | 15.89 | % | 15.35 | % | 14.75 | % | ||||||||||
| Tangible common equity to tangible assets (non-GAAP)(1) | 10.20 | % | 10.12 | % | 10.41 | % | 9.88 | % | 9.35 | % | ||||||||||
| LOANS RECEIVABLE | ||||||||||||||||||||
| Real estate | ||||||||||||||||||||
| Commercial real estate loans | ||||||||||||||||||||
| Non-farm/non-residential | $ | 4,144,375 | $ | 4,289,142 | $ | 4,429,060 | $ | 4,342,141 | $ | 4,325,795 | ||||||||||
| Construction/land development | 1,541,482 | 1,612,973 | 1,562,298 | 1,748,928 | 1,818,151 | |||||||||||||||
| Agricultural | 126,293 | 113,382 | 114,431 | 89,476 | 105,554 | |||||||||||||||
| Residential real estate loans | ||||||||||||||||||||
| Residential 1-4 family | 1,316,485 | 1,437,546 | 1,536,257 | 1,665,628 | 1,730,716 | |||||||||||||||
| Multifamily residential | 332,256 | 377,661 | 536,538 | 491,380 | 482,635 | |||||||||||||||
| Total real estate | 7,460,891 | 7,830,704 | 8,178,584 | 8,337,553 | 8,462,851 | |||||||||||||||
| Consumer | 824,938 | 839,819 | 864,690 | 883,568 | 851,344 | |||||||||||||||
| Commercial and industrial | 1,612,826 | 1,794,787 | 1,896,442 | 2,161,818 | 2,228,816 | |||||||||||||||
| Agricultural | 69,152 | 65,017 | 66,869 | 85,365 | 80,023 | |||||||||||||||
| Other | 231,368 | 248,166 | 214,136 | 223,166 | 332,709 | |||||||||||||||
| Loans receivable | $ | 10,199,175 | $ | 10,778,493 | $ | 11,220,721 | $ | 11,691,470 | $ | 11,955,743 | ||||||||||
| Paycheck Protection Program (PPP) loans (net of discounts) | ||||||||||||||||||||
| (included in total loans receivable) | 473,894 | 646,382 | 675,225 | 825,362 | 819,154 | |||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES | ||||||||||||||||||||
| Balance, beginning of period | $ | 242,932 | $ | 245,473 | $ | 248,224 | $ | 238,340 | $ | 228,923 | ||||||||||
| Loans charged off | 3,023 | 3,047 | 3,040 | 4,599 | 2,582 | |||||||||||||||
| Recoveries of loans previously charged off | 542 | 506 | 289 | 483 | 558 | |||||||||||||||
| Net loans charged off | 2,481 | 2,541 | 2,751 | 4,116 | 2,024 | |||||||||||||||
| Provision for credit losses - loans | - | - | - | 14,000 | 11,441 | |||||||||||||||
| Balance, end of period | $ | 240,451 | $ | 242,932 | $ | 245,473 | $ | 248,224 | $ | 238,340 | ||||||||||
| Net charge-offs to average total loans | 0.09 | % | 0.09 | % | 0.10 | % | 0.14 | % | 0.07 | % | ||||||||||
| Allowance for credit losses to total loans | 2.36 | % | 2.25 | % | 2.19 | % | 2.12 | % | 1.99 | % | ||||||||||
| Allowance for credit losses to total loans, excluding PPP loans | 2.47 | % | 2.40 | % | 2.33 | % | 2.28 | % | 2.14 | % | ||||||||||
| NON-PERFORMING ASSETS | ||||||||||||||||||||
| Non-performing loans | ||||||||||||||||||||
| Non-accrual loans | $ | 55,269 | $ | 59,142 | $ | 64,528 | $ | 65,148 | $ | 52,074 | ||||||||||
| Loans past due 90 days or more | 3,667 | 4,209 | 9,610 | 8,635 | 7,824 | |||||||||||||||
| Total non-performing loans | 58,936 | 63,351 | 74,138 | 73,783 | 59,898 | |||||||||||||||
| Other non-performing assets | ||||||||||||||||||||
| Foreclosed assets held for sale, net | 1,969 | 3,004 | 4,420 | 4,322 | 6,292 | |||||||||||||||
| Other non-performing assets | - | - | - | 247 | 247 | |||||||||||||||
| Total other non-performing assets | 1,969 | 3,004 | 4,420 | 4,569 | 6,539 | |||||||||||||||
| Total non-performing assets | $ | 60,905 | $ | 66,355 | $ | 78,558 | $ | 78,352 | $ | 66,437 | ||||||||||
| Allowance for credit losses for loans to non-performing loans | 407.99 | % | 383.47 | % | 331.10 | % | 336.42 | % | 397.91 | % | ||||||||||
| Non-performing loans to total loans | 0.58 | % | 0.59 | % | 0.66 | % | 0.63 | % | 0.50 | % | ||||||||||
| Non-performing assets to total assets | 0.35 | % | 0.38 | % | 0.48 | % | 0.47 | % | 0.39 | % | ||||||||||
(1) Calculation of this metric and the reconciliation to GAAP is included in the schedules accompanying this release.
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
| Three Months Ended | ||||||||||||||||||||
| June 30, 2021 | March 31, 2021 | |||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||
| ASSETS | ||||||||||||||||||||
| Earning assets | ||||||||||||||||||||
| Interest-bearing balances due from banks | $ | 2,577,101 | $ | 707 | 0.11 | % | $ | 1,610,463 | $ | 410 | 0.10 | % | ||||||||
| Federal funds sold | 51 | - | 0.00 | % | 119 | - | 0.00 | % | ||||||||||||
| Investment securities - taxable | 1,909,485 | 7,185 | 1.51 | % | 1,637,061 | 6,253 | 1.55 | % | ||||||||||||
| Investment securities - non-taxable - FTE | 864,416 | 6,527 | 3.03 | % | 848,158 | 6,732 | 3.22 | % | ||||||||||||
| Loans receivable - FTE | 10,541,466 | 141,872 | 5.40 | % | 11,023,139 | 151,113 | 5.56 | % | ||||||||||||
| Total interest-earning assets | 15,892,519 | 156,291 | 3.94 | % | 15,118,940 | 164,508 | 4.41 | % | ||||||||||||
| Non-earning assets | 1,598,840 | 1,599,950 | ||||||||||||||||||
| Total assets | $ | 17,491,359 | $ | 16,718,890 | ||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 8,684,726 | $ | 3,960 | 0.18 | % | $ | 8,338,791 | $ | 4,716 | 0.23 | % | ||||||||
| Time deposits | 1,123,287 | 2,474 | 0.88 | % | 1,209,431 | 2,989 | 1.00 | % | ||||||||||||
| Total interest-bearing deposits | 9,808,013 | 6,434 | 0.26 | % | 9,548,222 | 7,705 | 0.33 | % | ||||||||||||
| Federal funds purchased | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||
| Securities sold under agreement to repurchase | 157,570 | 107 | 0.27 | % | 159,697 | 190 | 0.48 | % | ||||||||||||
| FHLB borrowed funds | 400,000 | 1,896 | 1.90 | % | 400,000 | 1,875 | 1.90 | % | ||||||||||||
| Subordinated debentures | 370,613 | 4,792 | 5.19 | % | 370,421 | 4,793 | 5.25 | % | ||||||||||||
| Total interest-bearing liabilities | 10,736,196 | 13,229 | 0.49 | % | 10,478,340 | 14,563 | 0.56 | % | ||||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||||
| Non-interest bearing deposits | 3,966,968 | 3,480,050 | ||||||||||||||||||
| Other liabilities | 128,048 | 134,882 | ||||||||||||||||||
| Total liabilities | 14,831,212 | 14,093,272 | ||||||||||||||||||
| Shareholders’ equity | 2,660,147 | 2,625,618 | ||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 17,491,359 | $ | 16,718,890 | ||||||||||||||||
| Net interest spread | 3.45 | % | 3.85 | % | ||||||||||||||||
| Net interest income and margin - FTE | $ | 143,062 | 3.61 | % | $ | 149,945 | 4.02 | % | ||||||||||||
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
| Six Months Ended | ||||||||||||||||||||
| June 30, 2021 | June 30, 2020 | |||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||
| ASSETS | ||||||||||||||||||||
| Earning assets | ||||||||||||||||||||
| Interest-bearing balances due from banks | $ | 2,096,452 | $ | 1,117 | 0.11 | % | $ | 542,066 | $ | 1,327 | 0.49 | % | ||||||||
| Federal funds sold | 84 | - | 0.00 | % | 2,609 | 21 | 1.62 | % | ||||||||||||
| Investment securities - taxable | 1,774,026 | 13,438 | 1.53 | % | 1,690,083 | 18,469 | 2.20 | % | ||||||||||||
| Investment securities - non-taxable - FTE | 856,332 | 13,259 | 3.12 | % | 417,919 | 8,981 | 4.32 | % | ||||||||||||
| Loans receivable - FTE | 10,780,972 | 292,985 | 5.48 | % | 11,399,178 | 317,636 | 5.60 | % | ||||||||||||
| Total interest-earning assets | 15,507,866 | 320,799 | 4.17 | % | 14,051,855 | 346,434 | 4.96 | % | ||||||||||||
| Non-earning assets | 1,599,393 | 1,674,486 | ||||||||||||||||||
| Total assets | $ | 17,107,259 | $ | 15,726,341 | ||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 8,512,714 | $ | 8,677 | 0.21 | % | $ | 7,346,281 | $ | 23,621 | 0.65 | % | ||||||||
| Time deposits | 1,166,121 | 5,462 | 0.94 | % | 1,899,673 | 15,693 | 1.66 | % | ||||||||||||
| Total interest-bearing deposits | 9,678,835 | 14,139 | 0.29 | % | 9,245,954 | 39,314 | 0.86 | % | ||||||||||||
| Federal funds purchased | - | - | 0.00 | % | 3,132 | 13 | 0.83 | % | ||||||||||||
| Securities sold under agreement to repurchase | 158,628 | 297 | 0.38 | % | 146,404 | 722 | 0.99 | % | ||||||||||||
| FHLB borrowed funds | 400,000 | 3,771 | 1.90 | % | 637,940 | 5,354 | 1.69 | % | ||||||||||||
| Subordinated debentures | 370,518 | 9,585 | 5.22 | % | 369,749 | 9,978 | 5.43 | % | ||||||||||||
| Total interest-bearing liabilities | 10,607,981 | 27,792 | 0.53 | % | 10,403,179 | 55,381 | 1.07 | % | ||||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||||
| Non-interest bearing deposits | 3,724,854 | 2,724,537 | ||||||||||||||||||
| Other liabilities | 131,446 | 128,102 | ||||||||||||||||||
| Total liabilities | 14,464,281 | 13,255,818 | ||||||||||||||||||
| Shareholders’ equity | 2,642,978 | 2,470,523 | ||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 17,107,259 | $ | 15,726,341 | ||||||||||||||||
| Net interest spread | 3.64 | % | 3.89 | % | ||||||||||||||||
| Net interest income and margin - FTE | $ | 293,007 | 3.81 | % | $ | 291,053 | 4.17 | % | ||||||||||||
Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
| (Dollars and shares in thousands, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Jun. 30, | Jun. 30, | |||||||||||||||||||||
| except per share data) | 2021 | 2021 | 2020 | 2020 | 2020 | 2021 | 2020 | |||||||||||||||||||||
| EARNINGS, AS ADJUSTED | ||||||||||||||||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 79,070 | $ | 91,602 | $ | 81,794 | $ | 69,320 | $ | 62,827 | $ | 170,672 | $ | 63,334 | ||||||||||||||
| Pre-tax adjustments | ||||||||||||||||||||||||||||
| Fair value adjustment for marketable securities | (1,250 | ) | (5,782 | ) | (4,271 | ) | 1,350 | (919 | ) | (7,032 | ) | 4,899 | ||||||||||||||||
| Special dividend from equity investment | (2,200 | ) | (8,073 | ) | - | (3,181 | ) | - | (10,273 | ) | (7,004 | ) | ||||||||||||||||
| Gain on securities | - | (219 | ) | - | - | - | (219 | ) | - | |||||||||||||||||||
| Recoveries on historic losses | - | (5,107 | ) | - | - | - | (5,107 | ) | - | |||||||||||||||||||
| Branch write-off expense | - | - | - | - | 981 | - | 981 | |||||||||||||||||||||
| Outsourced special project expense | - | - | - | - | - | - | 1,092 | |||||||||||||||||||||
| Merger and acquisition expenses | - | - | - | - | - | - | 711 | |||||||||||||||||||||
| Total pre-tax adjustments | (3,450 | ) | (19,181 | ) | (4,271 | ) | (1,831 | ) | 62 | (22,631 | ) | 679 | ||||||||||||||||
| Tax-effect of adjustments | (902 | ) | (5,013 | ) | (1,116 | ) | (479 | ) | 16 | (5,915 | ) | 177 | ||||||||||||||||
| Total adjustments after-tax (B) | (2,548 | ) | (14,168 | ) | (3,155 | ) | (1,352 | ) | 46 | (16,716 | ) | 502 | ||||||||||||||||
| Earnings, as adjusted (C) | $ | 76,522 | $ | 77,434 | $ | 78,639 | $ | 67,968 | $ | 62,873 | $ | 153,956 | $ | 63,836 | ||||||||||||||
| Average diluted shares outstanding (D) | 165,226 | 165,446 | 165,119 | 165,200 | 165,163 | 165,314 | 165,588 | |||||||||||||||||||||
| GAAP diluted earnings per share: (A/D) | $ | 0.48 | $ | 0.55 | $ | 0.50 | $ | 0.42 | $ | 0.38 | $ | 1.03 | $ | 0.38 | ||||||||||||||
| Adjustments after-tax: (B/D) | (0.02 | ) | (0.08 | ) | (0.02 | ) | (0.01 | ) | - | (0.10 | ) | 0.01 | ||||||||||||||||
| Diluted earnings per common share, as | ||||||||||||||||||||||||||||
| adjusted, excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (C/D) | $ | 0.46 | $ | 0.47 | $ | 0.48 | $ | 0.41 | $ | 0.38 | $ | 0.93 | $ | 0.39 | ||||||||||||||
| ANNUALIZED RETURN ON AVERAGE ASSETS | ||||||||||||||||||||||||||||
| Return on average assets: (A/G) | 1.81 | % | 2.22 | % | 1.97 | % | 1.66 | % | 1.55 | % | 2.01 | % | 0.81 | % | ||||||||||||||
| Return on average assets excluding fair | ||||||||||||||||||||||||||||
| value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROA, as adjusted) ((A+F)/G) | 1.75 | % | 1.88 | % | 1.90 | % | 1.63 | % | 1.55 | % | 1.81 | % | 0.82 | % | ||||||||||||||
| Return on average assets excluding intangible | ||||||||||||||||||||||||||||
| amortization: ((A+E)/(G-H)) | 1.95 | % | 2.39 | % | 2.13 | % | 1.80 | % | 1.68 | % | 2.16 | % | 0.90 | % | ||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 79,070 | $ | 91,602 | $ | 81,794 | $ | 69,320 | $ | 62,827 | $ | 170,672 | $ | 63,334 | ||||||||||||||
| Amortization of intangibles (D) | 1,421 | 1,421 | 1,421 | 1,420 | 1,486 | 2,842 | 3,003 | |||||||||||||||||||||
| Amortization of intangibles after-tax (E) | 1,049 | 1,049 | 1,049 | 1,049 | 1,098 | 2,098 | 2,218 | |||||||||||||||||||||
| Adjustments after-tax (F) | (2,548 | ) | (14,168 | ) | (3,155 | ) | (1,352 | ) | 46 | (16,716 | ) | 502 | ||||||||||||||||
| Average assets (G) | 17,491,359 | 16,718,890 | 16,493,066 | 16,594,495 | 16,319,206 | 17,107,259 | 15,726,341 | |||||||||||||||||||||
| Average goodwill, core deposits & other | ||||||||||||||||||||||||||||
| intangible assets (H) | 1,001,598 | 1,003,011 | 1,004,432 | 1,005,864 | 1,007,307 | 1,002,301 | 1,003,156 | |||||||||||||||||||||
Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Jun. 30, | Jun. 30, | ||||||||||||||||||||||
| (Dollars in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | 2021 | 2020 | |||||||||||||||||||||
| ANNUALIZED RETURN ON AVERAGE COMMON EQUITY | ||||||||||||||||||||||||||||
| Return on average common equity: (A/D) | 11.92 | % | 14.15 | % | 12.72 | % | 10.97 | % | 10.27 | % | 13.02 | % | 5.16 | % | ||||||||||||||
| Return on average common equity excluding fair value | ||||||||||||||||||||||||||||
| adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROE, as adjusted) ((A+C)/D) | 11.54 | % | 11.96 | % | 12.23 | % | 10.76 | % | 10.28 | % | 11.75 | % | 5.20 | % | ||||||||||||||
| Return on average tangible common equity: (A/(D-E)) | 19.12 | % | 22.90 | % | 20.96 | % | 18.29 | % | 17.40 | % | 20.98 | % | 8.68 | % | ||||||||||||||
| Return on average tangible common equity | ||||||||||||||||||||||||||||
| excluding intangible amortization: (B/(D-E)) | 19.38 | % | 23.16 | % | 21.22 | % | 18.56 | % | 17.70 | % | 21.24 | % | 8.98 | % | ||||||||||||||
| Return on average tangible common equity excluding | ||||||||||||||||||||||||||||
| fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROTCE, as adjusted) ((A+C)/(D-E)) | 18.51 | % | 19.35 | % | 20.15 | % | 17.93 | % | 17.41 | % | 18.92 | % | 8.75 | % | ||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 79,070 | $ | 91,602 | $ | 81,794 | $ | 69,320 | $ | 62,827 | $ | 170,672 | $ | 63,334 | ||||||||||||||
| Earnings excluding intangible amortization (B) | 80,119 | 92,651 | 82,843 | 70,369 | 63,925 | 172,770 | 65,553 | |||||||||||||||||||||
| Adjustments after-tax (C) | (2,548 | ) | (14,168 | ) | (3,155 | ) | (1,352 | ) | 46 | (16,716 | ) | 502 | ||||||||||||||||
| Average common equity (D) | 2,660,147 | 2,625,618 | 2,557,251 | 2,513,792 | 2,459,941 | 2,642,978 | 2,470,523 | |||||||||||||||||||||
| Average goodwill, core deposits & other intangible assets (E) | 1,001,598 | 1,003,011 | 1,004,432 | 1,005,864 | 1,007,307 | 1,002,301 | 1,003,156 | |||||||||||||||||||||
| EFFICIENCY RATIO & P5NR | ||||||||||||||||||||||||||||
| Efficiency ratio: ((D-F)/(B+C+E)) | 41.08 | % | 36.60 | % | 39.64 | % | 39.56 | % | 39.67 | % | 38.71 | % | 40.83 | % | ||||||||||||||
| Efficiency ratio, as adjusted: ((D-F-H)/(B+C+E-G)) | 42.06 | % | 40.67 | % | 40.67 | % | 40.08 | % | 39.38 | % | 41.35 | % | 40.34 | % | ||||||||||||||
| Pre-tax net income to total revenue (net) (A/(B+C)) | 60.42 | % | 62.32 | % | 59.19 | % | 51.32 | % | 47.25 | % | 61.42 | % | 23.68 | % | ||||||||||||||
| Pre-tax, pre-provision, net income (PPNR) (B+C-D) | $ | 99,390 | $ | 120,498 | $ | 107,669 | $ | 104,377 | $ | 102,732 | $ | 219,888 | $ | 194,910 | ||||||||||||||
| P5NR (Pre-tax, pre-provision, profit | ||||||||||||||||||||||||||||
| percentage) PPNR to total revenue (net) (B+C-D)/(B+C) | 57.66 | % | 62.32 | % | 59.19 | % | 59.28 | % | 59.15 | % | 60.12 | % | 57.95 | % | ||||||||||||||
| Pre-tax net income (A) | $ | 104,142 | $ | 120,498 | $ | 107,669 | $ | 90,377 | $ | 82,077 | $ | 224,640 | $ | 79,657 | ||||||||||||||
| Net interest income (B) | 141,252 | 148,088 | 148,025 | 146,138 | 148,667 | 289,340 | 288,392 | |||||||||||||||||||||
| Non-interest income (C) | 31,120 | 45,276 | 33,885 | 29,951 | 25,023 | 76,396 | 47,950 | |||||||||||||||||||||
| Non-interest expense (D) | 72,982 | 72,866 | 74,241 | 71,712 | 70,958 | 145,848 | 141,432 | |||||||||||||||||||||
| Fully taxable equivalent adjustment (E) | 1,810 | 1,857 | 1,778 | 1,576 | 1,434 | 3,667 | 2,661 | |||||||||||||||||||||
| Amortization of intangibles (F) | 1,421 | 1,421 | 1,421 | 1,420 | 1,486 | 2,842 | 3,003 | |||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||
| Non-interest income: | ||||||||||||||||||||||||||||
| Fair value adjustment for marketable securities | $ | 1,250 | $ | 5,782 | $ | 4,271 | $ | (1,350 | ) | $ | 919 | $ | 7,032 | $ | (4,899 | ) | ||||||||||||
| Gain (loss) on OREO | 619 | 401 | 150 | 470 | 235 | 1,020 | 512 | |||||||||||||||||||||
| Gain (loss) on branches, equipment and other assets, net | (23 | ) | (29 | ) | 217 | (27 | ) | 54 | (52 | ) | 136 | |||||||||||||||||
| Special dividend from equity investment | 2,200 | 8,073 | - | 3,181 | - | 10,273 | 7,004 | |||||||||||||||||||||
| Gain (loss) on securities | - | 219 | - | - | - | 219 | - | |||||||||||||||||||||
| Recoveries on historic losses | - | 5,107 | - | - | - | 5,107 | - | |||||||||||||||||||||
| Total non-interest income adjustments (G) | $ | 4,046 | $ | 19,553 | $ | 4,638 | $ | 2,274 | $ | 1,208 | $ | 23,599 | $ | 2,753 | ||||||||||||||
| Non-interest expense: | ||||||||||||||||||||||||||||
| Branch write-off expense | $ | - | $ | - | $ | - | $ | - | $ | 981 | $ | - | $ | 981 | ||||||||||||||
| Merger Expenses | - | - | - | - | - | - | 711 | |||||||||||||||||||||
| Outsourced special project expense | - | - | - | - | - | - | 1,092 | |||||||||||||||||||||
| Total non-interest expense adjustments (H) | $ | - | $ | - | $ | - | $ | - | $ | 981 | $ | - | $ | 2,784 | ||||||||||||||
Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Jun. 30, | Jun. 30, | ||||||||||||||||||||||
| (Dollars in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | 2021 | 2020 | |||||||||||||||||||||
| ANNUALIZED NET INTEREST MARGIN | ||||||||||||||||||||||||||||
| Net interest margin: (A/C) | 3.61 | % | 4.02 | % | 4.00 | % | 3.92 | % | 4.11 | % | 3.81 | % | 4.17 | % | ||||||||||||||
| Net interest margin, excluding PPP loans: | ||||||||||||||||||||||||||||
| (B/D) | 3.54 | % | 3.87 | % | 3.97 | % | 3.98 | % | 4.16 | % | 3.70 | % | 4.19 | % | ||||||||||||||
| Net interest income - FTE (A) | $ | 143,062 | $ | 149,945 | $ | 149,803 | $ | 147,714 | $ | 150,101 | $ | 293,007 | $ | 291,053 | ||||||||||||||
| PPP loan interest & discount accretion | ||||||||||||||||||||||||||||
| income | 7,802 | 11,878 | 8,841 | 5,943 | 4,450 | 19,680 | 4,450 | |||||||||||||||||||||
| Net interest income - FTE, excluding | ||||||||||||||||||||||||||||
| PPP loans (B) | $ | 135,260 | $ | 138,067 | $ | 140,962 | $ | 141,771 | $ | 145,651 | $ | 273,327 | $ | 286,603 | ||||||||||||||
| Average interest-earning assets (C) | $ | 15,892,519 | $ | 15,118,940 | $ | 14,900,381 | $ | 14,975,146 | $ | 14,678,465 | $ | 15,507,866 | $ | 14,051,855 | ||||||||||||||
| Average PPP loans | 581,371 | 633,790 | 775,861 | 821,977 | 585,946 | 607,436 | 292,973 | |||||||||||||||||||||
| Average interest-earning assets, excluding | ||||||||||||||||||||||||||||
| PPP loans (D) | $ | 15,311,148 | $ | 14,485,150 | $ | 14,124,520 | $ | 14,153,169 | $ | 14,092,519 | $ | 14,900,430 | $ | 13,758,882 | ||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||||||||||
| 2021 | 2021 | 2020 | 2020 | 2020 | ||||||||||||||||||||||||
| TANGIBLE BOOK VALUE PER COMMON SHARE | ||||||||||||||||||||||||||||
| Book value per common share: (A/B) | $ | 16.39 | $ | 16.02 | $ | 15.78 | $ | 15.38 | $ | 15.09 | ||||||||||||||||||
| Tangible book value per common share: | ||||||||||||||||||||||||||||
| ((A-C-D)/B) | 10.31 | 9.95 | 9.70 | 9.30 | 8.99 | |||||||||||||||||||||||
| Total stockholders’ equity (A) | $ | 2,696,189 | $ | 2,645,204 | $ | 2,605,758 | $ | 2,540,799 | $ | 2,492,146 | ||||||||||||||||||
| End of period common shares outstanding (B) | 164,488 | 165,141 | 165,095 | 165,163 | 165,206 | |||||||||||||||||||||||
| Goodwill (C) | 973,025 | 973,025 | 973,025 | 973,025 | 973,025 | |||||||||||||||||||||||
| Core deposit and other intangibles (D) | 27,886 | 29,307 | 30,728 | 32,149 | 33,569 | |||||||||||||||||||||||
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | ||||||||||||||||||||||||||||
| Equity to assets: (B/A) | 15.30 | % | 15.34 | % | 15.89 | % | 15.35 | % | 14.75 | % | ||||||||||||||||||
| Tangible common equity to tangible assets: | ||||||||||||||||||||||||||||
| ((B-C-D)/(A-C-D)) | 10.20 | % | 10.12 | % | 10.41 | % | 9.88 | % | 9.35 | % | ||||||||||||||||||
| Total assets (A) | $ | 17,627,192 | $ | 17,240,241 | $ | 16,398,804 | $ | 16,549,758 | $ | 16,895,406 | ||||||||||||||||||
| Total stockholders’ equity (B) | 2,696,189 | 2,645,204 | 2,605,758 | 2,540,799 | 2,492,146 | |||||||||||||||||||||||
| Goodwill (C) | 973,025 | 973,025 | 973,025 | 973,025 | 973,025 | |||||||||||||||||||||||
| Core deposit and other intangibles (D) | 27,886 | 29,307 | 30,728 | 32,149 | 33,569 | |||||||||||||||||||||||