• Home BancShares, Inc. Reaches $300 Million in Net Income for 2018 and Earns #1 Ranking on the Forbes “Best Banks in America” List Two Years in a Row

    Source: Nasdaq GlobeNewswire / 17 Jan 2019 08:15:12   America/New_York

    CONWAY, Ark., Jan. 17, 2019 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, today announced reaching $300.4 million in net income for the year of 2018, an increase of $165.3 million or 122.4%, compared to $135.1 million for the year of 2017.  Additionally, the Company ranked #1 on the Forbes “Best Banks in America” list for the second consecutive year.

    Highlights of the Fourth Quarter of 2018:

    Performance MetricQ4 2018Q4 2017Q4 2018, As Adjusted
    (non-GAAP)(1)
    Net Income$71.0 million$23.3 million$75.8 million
    Total Revenue$201.3 million$186.3 million$201.3 million
    Diluted Earnings Per Share$0.41$0.13$0.44
    ROA1.90%0.66%2.03%
    ROE12.05%4.17%12.86%
    ROTCE (non-GAAP)(1)21.08%7.46%22.50%
    Organic Loan Growth$239.1 million$45.0 million$239.1 million
    (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
     

    “2017 was a great year for HOMB; however, 2018 was even better,” said John Allison, Chairman. “Even though bank stocks have underperformed as a sector for the second consecutive year, we didn’t. We saw our earnings, as adjusted (non-GAAP), grow from a record $204.8 million in 2017 to a record $305.2 million in 2018 and were recognized again by Forbes as the Best Bank in America for the second year in a row,” Allison continued.

    “Reaching a record $1.14 billion in loan originations this quarter indicates that loan demand is still out there,” said Tracy French, Centennial Bank President and Chief Executive Officer. “I am pleased with our $239.1 million in loan growth for the fourth quarter,” French added.

    “I am proud once again and for the 31st time to report record quarterly earnings, as adjusted (non-GAAP), when compared to the same quarter of previous year,” said Randy Sims, Home BancShares, Inc. Chief Executive Officer. “This has been a special year and we anticipate continuing our record pace in 2019,” added Sims.

    Operating Highlights

    Net interest margin, on a fully taxable equivalent basis, was 4.30% for the quarter just ended compared to 4.47% for the same quarter in 2017.   Net interest margin for the fourth quarter of 2018 includes accretion income of $9.4 million and average purchase accounting loan discounts of $141.2 million, compared to accretion income of $12.4 million and average purchase accounting loan discounts of $178.0 million for the fourth quarter of 2017.

    During the fourth quarter of 2018, the Company did not record a provision for loan loss compared to $4.9 million recorded in the fourth quarter of 2017.  The Company continues to see strong asset quality including a decline in net charge-offs.  Non-performing loans to total loans was 0.58% as of December 31, 2018 compared to 0.43% as of December 31, 2017. Non-performing assets to total assets also increased from 0.44% as of December 31, 2017 to 0.51% as of December 31, 2018.  For the fourth quarter of 2018, net charge-offs were $1.4 million compared to net charge-offs of $6.3 million for the fourth quarter of 2017.

    The Company reported $23.5 million of non-interest income for the fourth quarter of 2018, compared to $27.3 million for the fourth quarter of 2017.  Excluding securities gains during the fourth quarter of 2017, non-interest income decreased $2.6 million from $26.1 million for the fourth quarter of 2017 to $23.5 million for the fourth quarter of 2018. The most important components of the fourth quarter non-interest income were $7.6 million from other service charges and fees, $7.0 million from service charges on deposits accounts, $2.6 million from mortgage lending income, $2.7 million from other income and $2.0 million from dividends from the FHLB, FRB, FNBB & other equity investments.  The Company exceeded $10 billion in assets during the first quarter of 2017 and became subject to the Durbin Amendment to the Dodd-Frank Act interchange fee restrictions beginning in the third quarter of 2018. The Durbin Amendment negatively impacted debit card and ATM fees beginning in the second half of 2018. The Company estimates quarterly interchange fees are approximately $3.0 million dollars lower as a result of the Durbin Amendment.

    Non-interest expense for the fourth quarter of 2018 was $71.3 million compared to $63.2 million for the fourth quarter of 2017.  Excluding $6.5 million in merger and hurricane expenses during the fourth quarter of 2018, non-interest expense increased $1.6 million from $63.2 million for the fourth quarter of 2017 to $64.8 million for the fourth quarter of 2018.  For the fourth quarter of 2018, our efficiency ratio increased to 42.18% from the 37.05% reported for the fourth quarter of 2017. 

    Financial Condition

    Total loans receivable were $11.07 billion at December 31, 2018 compared to $10.33 billion at December 31, 2017.  Total deposits were $10.90 billion at December 31, 2018 compared to $10.39 billion at December 31, 2017.  Total assets were $15.30 billion at December 31, 2018 compared to $14.45 billion at December 31, 2017.

    During the fourth quarter 2018 the Company experienced approximately $239.1 million in organic loan growth.  Centennial CFG experienced $86.6 million of organic loan growth and had loans of $1.56 billion at December 31, 2018.  Our legacy footprint produced approximately $152.5 million in organic loan growth during the quarter.

    Non-performing loans at December 31, 2018 were $17.4 million, $43.3 million, $179,000, $3.4 million and zero in the Arkansas, Florida, Alabama, Shore Premier and Centennial CFG markets, respectively, for a total of $64.2 million.  Non-performing assets at December 31, 2018 were $24.0 million, $50.2 million, $306,000, $3.4 million and zero in the Arkansas, Florida, Alabama, Shore Premier and Centennial CFG markets, respectively, for a total of $78.0 million. 

    The Company’s allowance for loan losses was $108.8 million at December 31, 2018, or 0.98% of total loans, compared to $110.3 million, or 1.07% of total loans, at December 31, 2017. As of December 31, 2018, and December 31, 2017, the Company’s allowance for loan losses was 169% and 247% of its total non-performing loans, respectively.

    Stockholders’ equity was $2.35 billion at December 31, 2018 compared to $2.20 billion at December 31, 2017, an increase of $145.6 million. The increase in stockholders’ equity is primarily associated with the $221.5 million increase in retained earnings and the issuance of $28.2 million in stock as a part of the acquisition of Shore Premier Finance, partially offset by $10.4 million of comprehensive loss and the repurchase of $104.3 million of our common stock during 2018, which includes the repurchase during the 4th quarter of 2018 of the shares issued as part of the acquisition of the Shore Premier Finance. Book value per common share was $13.76 at December 31, 2018 compared to $12.70 at December 31, 2017.  Tangible book value per common share (non-GAAP) was $7.90 at December 31, 2018 compared to $7.07 at December 31, 2017, an increase of 11.7%. 

    Branches

    The Company currently has 77 branches in Arkansas, 76 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, January 17, 2019.  We encourage all participants to pre-register for the conference call using the following link:  http://dpregister.com/10127084.  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: 10127084, which will be available until January 24, 2019 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; diluted earnings per common share, as adjusted; return on average assets, as adjusted; 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 and tangible book value per common share--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.  Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

    General

    This release contains forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future. 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, the ability to successfully integrate new acquisitions, increased regulatory requirements as a result of our exceeding $10 billion in total assets, legislative and regulatory changes, technological changes and cybersecurity risks, competition from other financial institutions, 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, 2017 filed with the SEC on February 27, 2018.

    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)
                         
       Dec. 31, 
      Sep. 30, 
      Jun. 30, 
      Mar. 31, 
      Dec. 31, 
    (In thousands)    2018     2018     2018     2018     2017  
                         
    ASSETS                    
                         
    Cash and due from banks $  175,024  $  208,681  $  197,658  $  185,479  $  166,915 
    Interest-bearing deposits with other banks    482,915     323,376     298,085     325,122     469,018 
    Cash and cash equivalents    657,939     532,057     495,743     510,601     635,933 
    Federal funds sold    325     500     500     1,825     24,109 
    Investment securities - available-for-sale    1,785,862     1,744,430     1,718,704     1,693,018     1,663,517 
    Investment securities - held-to-maturity    192,776     199,266     204,401     213,731     224,756 
    Loans receivable    11,071,879     10,832,815     10,897,970     10,325,736     10,331,188 
    Allowance for loan losses    (108,791)    (110,191)    (111,516)    (110,212)    (110,266)
    Loans receivable, net    10,963,088     10,722,624     10,786,454     10,215,524     10,220,922 
    Bank premises and equipment, net    233,261     233,652     234,634     235,607     237,439 
    Foreclosed assets held for sale    13,236     13,507     17,853     20,134     18,867 
    Cash value of life insurance    148,621     148,014     147,281     147,424     146,866 
    Accrued interest receivable    48,945     48,909     45,682     45,361     45,708 
    Deferred tax asset, net    73,275     79,548     78,435     78,328     76,564 
    Goodwill    958,408     958,408     956,418     927,949     927,949 
    Core deposit and other intangibles    42,896     44,484     46,101     47,726     49,351 
    Other assets    183,806     187,339     191,914     186,001     177,779 
    Total assets  $  15,302,438  $  14,912,738  $  14,924,120  $  14,323,229  $  14,449,760 
           
    LIABILITIES AND STOCKHOLDERS' EQUITY      
           
    Liabilities      
    Deposits:      
    Demand and non-interest-bearing $  2,401,232  $  2,482,857  $  2,523,553  $  2,473,602  $  2,385,252 
    Savings and interest-bearing transaction accounts    6,624,407     6,420,951     6,573,902     6,437,408     6,476,819 
    Time deposits    1,874,139     1,720,930     1,638,578     1,485,605     1,526,431 
    Total deposits    10,899,778     10,624,738     10,736,033     10,396,615     10,388,502 
    Federal funds purchased  -   -   -   -   - 
    Securities sold under agreements to repurchase    143,679     142,146     139,750     150,315     147,789 
    FHLB and other borrowed funds    1,472,393     1,363,851     1,309,950     1,115,061     1,299,188 
    Accrued interest payable and other liabilities    67,912     72,381     55,971     54,845     41,959 
    Subordinated debentures    368,790     368,596     368,403     368,212     368,031 
    Total liabilities     12,952,552     12,571,712     12,610,107     12,085,048     12,245,469 
           
    Stockholders' equity       
    Common stock    1,707     1,741     1,745     1,736     1,736 
    Capital surplus    1,609,810     1,668,106     1,693,337     1,671,141     1,675,318 
    Retained earnings    752,184     701,900     642,540     585,586     530,658 
    Accumulated other comprehensive (loss) income    (13,815)    (30,721)    (23,609)    (20,282)    (3,421)
    Total stockholders' equity     2,349,886     2,341,026     2,314,013     2,238,181     2,204,291 
    Total liabilities and stockholders' equity  $  15,302,438  $  14,912,738  $  14,924,120  $  14,323,229  $  14,449,760 
           

     

     
     Home BancShares, Inc. 
     Consolidated Statements of Income 
     (Unaudited) 
                                 
       Quarter Ended  Year Ended 
       Dec. 31, 
      Sep. 30,
      Jun. 30,
      Mar. 31,
      Dec. 31,  Dec. 31,
      Dec. 31,
    (In thousands)    2018     2018     2018    2018    2017     2018     2017  
                                 
    Interest income                             
    Loans $  163,201  $  166,334  $  152,996  $  148,065  $  147,426  $  630,596  $  479,189 
    Investment securities                            
    Taxable    9,873     9,011     8,979     8,970     7,793     36,833     26,776 
    Tax-exempt    3,456     3,427     3,368     3,006     3,025     13,257     11,967 
    Deposits - other banks    1,241     1,273     1,206     929     736     4,649     2,309 
    Federal funds sold    9     6     12     6     1     33     10 
                                 
    Total interest income    177,780     180,051     166,561     160,976     158,981     685,368     520,251 
                                 
    Interest expense                             
    Interest on deposits    25,207     21,412     18,164     14,806     12,946     79,589     33,777 
    Federal funds purchased  -   -   -     1     1     1     1 
    FHLB borrowed funds    6,474     7,055     4,245     4,580     3,806     22,354     14,513 
    Securities sold under agreements to repurchase    602     472     372     376     325     1,822     918 
    Subordinated debentures    5,215     5,202     5,168     5,004     4,934     20,589     15,137 
                                 
    Total interest expense    37,498     34,141     27,949     24,767     22,012     124,355     64,346 
                                 
    Net interest income     140,282     145,910     138,612     136,209     136,969     561,013     455,905 
    Provision for loan losses  -   -     2,722     1,600     4,926     4,322     44,250 
    Net interest income after provision for loan losses     140,282     145,910     135,890     134,609     132,043     556,691     411,655 
                                 
    Non-interest income                             
    Service charges on deposit accounts    7,004     6,992     6,780     6,075     6,566     26,851     24,922 
    Other service charges and fees    7,598     9,041     9,797     10,155     10,144     36,591     36,127 
    Trust fees    290     437     379     446     548     1,552     1,678 
    Mortgage lending income    2,554     3,691     3,477     2,657     3,573     12,379     13,286 
    Insurance commissions    442     463     526     679     466     2,110     1,948 
    Increase in cash value of life insurance    737     735     730     654     738     2,856     1,989 
    Dividends from FHLB, FRB, FNBB & other    1,992     1,288     1,600     877     1,030     5,757     3,485 
    Gain on acquisitions  -   -   -   -   -   -     3,807 
    Gain (loss) on SBA loans  75   47   262   182   -   566     738 
    Gain (loss) on branches, equipment and other assets, net  (25)  (102)  -   7   2   (120)    (960)
    Gain (loss) on OREO, net  114   836   1,046   405   176   2,401     1,025 
    Gain (loss) on securities, net  -   -   -   -   1,193   -     2,132 
    Other income    2,726     2,419     3,076     3,668     2,856     11,889     9,459 
                                 
    Total non-interest income    23,507     25,847     27,673     25,805     27,292     102,832     99,636 
                                 
    Non-interest expense                             
    Salaries and employee benefits    36,230     37,825     34,476     35,014     35,404     143,545     119,369 
    Occupancy and equipment    8,310     8,148     8,519     8,983     9,009     33,960     30,055 
    Data processing expense    3,642     3,461     3,339     3,986     3,559     14,428     11,998 
    Other operating expenses    23,090     16,689     16,894     15,397     15,246     72,070     78,786 
              
                                 
    Total non-interest expense    71,272     66,123     63,228     63,380     63,218     264,003     240,208 
              
                                 
    Income before income taxes     92,517     105,634     100,335     97,034     96,117     395,520     271,083 
    Income tax expense    21,487     25,350     24,310     23,970     72,808     95,117     136,000 
    Net income  $  71,030  $  80,284  $  76,025  $  73,064  $  23,309  $  300,403  $  135,083 
              
                                 

     

     
     Home BancShares, Inc. 
     Selected Financial Information
     (Unaudited)
                                 
       Quarter Ended
      Year Ended
       Dec. 31,
      Sep. 30,
      Jun. 30,
      Mar. 31,
      Dec. 31,
      Dec. 31,
      Dec. 31,
    (Dollars and shares in thousands, except per share data)   2018   2018   2018   2018   2017   2018   2017 
                                 
    PER SHARE DATA                            
                                 
    Diluted earnings per common share $  0.41  $  0.46  $  0.44  $  0.42  $  0.13  $  1.73  $  0.89 
    Diluted earnings per common share, as adjusted, excluding gain on acquisitions, merger expenses, FDIC loss share buy-out expense, reduced provision for loan losses as a result of a significant loan recovery, hurricane expenses & effect of tax rate change (non-GAAP)(1)    0.44     0.46     0.44     0.42     0.35     1.75     1.35 
    Basic earnings per common share    0.41     0.46     0.44     0.42     0.13     1.73     0.90 
    Dividends per share - common    0.1200     0.1200     0.1100     0.1100     0.1100     0.4600     0.4000 
    Book value per common share    13.76     13.44     13.26     12.89     12.70     13.76     12.70 
    Tangible book value per common share (non-GAAP)(1)    7.90     7.68     7.52     7.27     7.07     7.90     7.07 
                                 
                                 
    STOCK INFORMATION                            
                                 
    Average common shares outstanding    173,023     174,440     173,403     173,761     173,641     173,657     150,806 
    Average diluted shares outstanding    173,311     174,867     173,936     174,383     174,349     174,124     151,528 
    End of period common shares outstanding    170,720     174,135     174,511     173,603     173,633     170,720     173,633 
                                 
                                 
    ANNUALIZED PERFORMANCE METRICS                            
                                 
    Return on average assets  1.90%  2.14%  2.13%  2.08%  0.66%  2.06%  1.17%
    Return on average assets excluding gain on acquisitions, merger expenses, hurricane expenses & effect of tax rate change (ROA, as adjusted) (non-GAAP)(1)  2.03%  2.14%  2.13%  2.08%  1.69%  2.10%  1.78%
    Return on average assets excluding intangible amortization (non-GAAP)(1)  2.07%  2.33%  2.32%  2.27%  0.73%  2.25%  1.26%
    Return on average assets, excluding intangible amortization, provision for loan losses, gain on acquisitions, merger expenses, hurricane expenses and income taxes (ROA, as fully adjusted) (non-GAAP)(1)  2.88%  3.07%  3.15%  3.07%  3.10%  3.04%  3.13%
    Return on average common equity  12.05%  13.74%  13.54%  13.38%  4.17%  13.17%  8.23%
    Return on average common equity excluding gain on acquisitions, merger expenses, hurricane expenses & effect of tax rate change: (ROE, as adjusted) (non-GAAP)(1)  12.86%  13.74%  13.54%  13.38%  10.77%  13.38%  12.48%
    Return on average tangible common equity (non-GAAP)(1)  21.08%  24.20%  23.90%  23.94%  7.46%  23.25%  12.68%
    Return on average tangible common equity excluding gain on acquisitions, merger expenses, hurricane expenses & effect of tax rate change: (ROTCE, as adjusted) (non-GAAP)(1)  22.50%  24.20%  23.90%  23.94%  19.29%  23.62%  19.23%
    Efficiency ratio  42.18%  37.23%  36.74%  37.83%  37.05%  38.48%  41.89%
    Efficiency ratio, as adjusted (non-GAAP)(1)  38.30%  37.40%  37.03%  37.97%  37.35%  37.67%  37.66%
    Net interest margin - FTE  4.30%  4.46%  4.47%  4.46%  4.47%  4.42%  4.51%
    Fully taxable equivalent adjustment $  1,412  $  1,489  $  1,403  $  1,209  $  1,983  $  5,513  $  7,856 
    Total revenue    201,287     205,898     194,234     186,781     186,273     788,200     619,887 
    Total purchase accounting accretion    9,432     10,744     10,669     10,608     12,397     41,455     35,716 
    Average purchase accounting loan discounts    141,244     151,377     153,624     164,122     178,027     152,948     120,160 
              
              
    OTHER OPERATING EXPENSES         
              
    Advertising $  1,214  $  1,154  $  1,142  $  962  $  898  $  4,472  $  3,203 
    Merger and acquisition expenses    6,013     -      -      -      -      6,013     25,743 
    Amortization of intangibles    1,587     1,617     1,624     1,626     1,631     6,454     4,207 
    Electronic banking expense    1,969     1,947     1,828     1,878     1,777     7,622     6,662 
    Directors' fees    319     314     318     330     313     1,281     1,259 
    Due from bank service charges    289     253     242     219     254     1,003     1,602 
    FDIC and state assessment    1,869     2,293     2,788     1,608     1,476     8,558     5,239 
    Hurricane expense    470     -     -     -     -     470     556 
    Insurance    737     762     714     887     814     3,100     2,512 
    Legal and accounting    1,151     761     858     778     1,194     3,548     2,993 
    Other professional fees    1,465     1,748     1,601     1,639     1,537     6,453     5,359 
    Operating supplies    510     510     602     600     602     2,222     1,978 
    Postage    325     311     323     344     323     1,303     1,184 
    Telephone    324     337     371     373     347     1,405     1,374 
    Other expense    4,848     4,682     4,483     4,153     4,080     18,166     14,915 
              
      Total other operating expenses  $  23,090  $  16,689  $  16,894  $  15,397  $  15,246  $  72,070  $  78,786 
              
              
     (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) 
                         
      Dec. 31,
      Sep. 30,
      June. 30,
      Mar. 31,
      Dec. 31,
    (Dollars in thousands)    2018    2018     2018     2018     2017  
                         
    BALANCE SHEET RATIOS                    
                         
    Total loans to total deposits  101.58%  101.96%  101.51%  99.32%  99.45%
    Common equity to assets  15.36%  15.70%  15.51%  15.63%  15.25%
    Tangible common equity to tangible assets (non-GAAP)(1)  9.43%  9.62%  9.42%  9.46%  9.11%
                         
                         
    LOANS RECEIVABLE                    
                         
    Real estate                    
    Commercial real estate loans                    
    Non-farm/non-residential $  4,806,684  $  4,685,827  $  4,734,315  $  4,658,209  $  4,600,117 
    Construction/land development    1,546,035     1,550,910     1,662,199     1,641,834     1,700,491 
    Agricultural    76,433     72,930     77,053     81,151     82,229 
    Residential real estate loans     
    Residential 1-4 family    1,975,586     1,982,666     1,960,841     1,915,346     1,970,311 
    Multifamily residential    560,475     608,608     540,526     464,194     441,303 
    Total real estate    8,965,213     8,900,941     8,974,934     8,760,734     8,794,451 
    Consumer    443,105     428,192     417,499     40,842     46,148 
    Commercial and industrial    1,476,331     1,303,841     1,287,637     1,324,173     1,297,397 
    Agricultural    48,562     58,644     55,768     50,770     49,815 
    Other    138,668     141,197     162,132     149,217     143,377 
    Loans receivable $  11,071,879  $  10,832,815  $  10,897,970  $  10,325,736  $  10,331,188 
                                   
    Discount for credit losses on purchased loans $  113,648  $  120,849  $  129,903  $  137,404  $  146,557 
    Purchased loans, net of discount for credit losses on purchased loans    2,900,284     3,081,695     3,522,753     3,232,004     3,464,990 
          
          
    ALLOWANCE FOR LOAN LOSSES     
          
    Balance, beginning of period $  110,191  $  111,516  $  110,212  $  110,266  $  111,620 
    Loans charged off    1,814     2,501     2,132     2,540     6,936 
    Recoveries of loans previously charged off    414     1,176     714     886     656 
    Net loans (recovered)/charged off    1,400     1,325     1,418     1,654     6,280 
    Provision for loan losses    -      -      2,722     1,600     4,926 
    Balance, end of period $  108,791  $  110,191  $  111,516  $  110,212  $  110,266 
                                   
    Net (recoveries) charge-offs to average total loans  0.05%  0.05%  0.05%  0.06%  0.24%
    Allowance for loan losses to total loans  0.98%  1.02%  1.02%  1.07%  1.07%
          
          
    NON-PERFORMING ASSETS     
          
    Non-performing loans     
    Non-accrual loans $  47,083  $  36,198  $  37,082  $  36,266  $  34,032 
    Loans past due 90 days or more    17,159     20,267     19,696     13,223     10,665 
    Total non-performing loans    64,242     56,465     56,778     49,489     44,697 
    Other non-performing assets     
    Foreclosed assets held for sale, net    13,236     13,507     17,853     20,134     18,867 
    Other non-performing assets    497     405     3     3     3 
    Total other non-performing assets    13,733     13,912     17,856     20,137     18,870 
    Total non-performing assets $  77,975  $  70,377  $  74,634  $  69,626  $  63,567 
          
    Allowance for loan losses for loans to non-performing loans  169.35%  195.15%  196.41%  222.70%  246.70%
    Non-performing loans to total loans  0.58%  0.52%  0.52%  0.48%  0.43%
    Non-performing assets to total assets  0.51%  0.47%  0.50%  0.49%  0.44%
          
          
     (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 
       December 31, 2018   September 30, 2018 
       Average 
     Income/   Yield/ 
     Average   Income/   Yield/ 
    (Dollars in thousands)   Balance 
      Expense  Rate 
     Balance   Expense   Rate 
             
    ASSETS        
    Earning assets         
      Interest-bearing balances due from banks  $  244,551 $  1,241 2.01% $  281,115 $  1,273 1.80%
      Federal funds sold     741    9 4.82%    524    6 4.54%
      Investment securities - taxable     1,553,467    9,873 2.52%    1,526,455    9,011 2.34%
      Investment securities - non-taxable - FTE     400,742    4,453 4.41%    402,355    4,507 4.44%
      Loans receivable - FTE     10,884,911    163,616 5.96%    10,909,646    166,743 6.06%
        Total interest-earning assets     13,084,412    179,192 5.43%    13,120,095    181,540 5.49%
      Non-earning assets     1,754,567      1,760,836  
        Total assets  $ 14,838,979   $ 14,880,931  
             
    LIABILITIES AND SHAREHOLDERS' EQUITY        
    Liabilities         
      Interest-bearing liabilities         
        Savings and interest-bearing transaction accounts  $  6,405,419 $  17,873 1.11% $  6,406,711 $  15,596 0.97%
        Time deposits     1,794,358    7,334 1.62%    1,661,129    5,816 1.39%
      Total interest-bearing deposits     8,199,777    25,207 1.22%    8,067,840    21,412 1.05%
      Federal funds purchased     -    - 0.00%    -    - 0.00%
      Securities sold under agreement to repurchase     147,895    602 1.61%    148,791    472 1.26%
      FHLB borrowed funds     1,242,985    6,474 2.07%    1,398,738    7,055 2.00%
      Subordinated debentures     368,695    5,215 5.61%    368,501    5,202 5.60%
      Total interest-bearing liabilities     9,959,352    37,498 1.49%    9,983,870    34,141 1.36%
      Non-interest bearing liabilities         
      Non-interest bearing deposits    2,464,003      2,512,690  
      Other liabilities     76,822      66,441  
      Total liabilities     12,500,177      12,563,001  
    Shareholders' equity     2,338,802      2,317,930  
      Total liabilities and shareholders' equity  $ 14,838,979   $ 14,880,931  
    Net interest spread     3.94%    4.13%
    Net interest income and margin - FTE    $  141,694 4.30%   $  147,399 4.46%
             

     

     
     Home BancShares, Inc. 
     Consolidated Net Interest Margin 
     (Unaudited) 
             
       Year Ended 
       December 31, 2018   December 31, 2017 
       Average   Income/   Yield/ 
      Average   Income/   Yield/ 
    (Dollars in thousands)   Balance   Expense   Rate 
      Balance   Expense   Rate 
             
    ASSETS        
    Earning assets         
      Interest-bearing balances due from banks  $  265,071 $  4,649 1.75% $  220,231 $  2,309 1.05%
      Federal funds sold     2,876    33 1.15%    6,308    10 0.16%
      Investment securities - taxable     1,542,188    36,833 2.39%    1,300,384    26,776 2.06%
      Investment securities - non-taxable - FTE     386,790    17,434 4.51%    348,865    19,411 5.56%
      Loans receivable - FTE     10,618,796    631,932 5.95%    8,403,154    479,601 5.71%
        Total interest-earning assets     12,815,721    690,881 5.39%    10,278,942    528,107 5.14%
      Non-earning assets     1,751,492      1,220,163  
      Total assets  $ 14,567,213   $ 11,499,105  
             
    LIABILITIES AND SHAREHOLDERS' EQUITY        
    Liabilities         
      Interest-bearing liabilities         
      Savings and interest-bearing transaction accounts  $  6,418,186 $  58,199 0.91% $  4,823,626 $  23,176 0.48%
      Time deposits     1,645,986    21,390 1.30%    1,444,828    10,601 0.73%
      Total interest-bearing deposits     8,064,172    79,589 0.99%    6,268,454    33,777 0.54%
      Federal funds purchased     31    1 3.23%    77    1 1.30%
      Securities sold under agreement to repurchase     148,327    1,822 1.23%    134,689    918 0.68%
      FHLB borrowed funds     1,180,897    22,354 1.89%    1,117,817    14,513 1.30%
      Subordinated debentures     368,409    20,589 5.59%    285,733    15,137 5.30%
      Total interest-bearing liabilities     9,761,836    124,355 1.27%    7,806,770    64,346 0.82%
      Non-interest bearing liabilities         
      Non-interest bearing deposits    2,464,024      2,005,632  
      Other liabilities     60,298      45,425  
      Total liabilities     12,286,158      9,857,827  
    Shareholders' equity     2,281,055      1,641,278  
      Total liabilities and shareholders' equity  $ 14,567,213   $ 11,499,105  
    Net interest spread     4.12%    4.32%
    Net interest income and margin - FTE    $  566,526 4.42%   $  463,761 4.51%
             

     

     
     Home BancShares, Inc. 
     Non-GAAP Reconciliations 
     (Unaudited) 
              
       Quarter Ended  Year Ended
    (Dollars and shares in thousands,   Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31  Dec. 31,   Dec. 31,  Dec. 31, 
    except per share data)    2018     2018     2018     2018     2017     2018     2017  
              
    EARNINGS, AS ADJUSTED         
              
    GAAP net income available to common shareholders (A) $71,030  $80,284  $76,025  $73,064  $23,309  $300,403  $135,083 
    Adjustments         
    Gain on acquisitions  -   -   -   -   -   -     (3,807)
    Merger and acquisition expenses  6,013   -   -   -   -   6,013   25,743 
    Hurricane expenses(1)  470   -   -   -   -   470   33,445 
    Effect of tax rate change  -   -   -   -   36,935   -   36,935 
    Total adjustments  6,483   -   -   -   36,935   6,483   92,316 
    Tax-effect of adjustments(2)  1,694   -   -   -   -   1,694   22,626 
    Adjustments after-tax (B)  4,789   -   -   -   36,935   4,789   69,690 
    Earnings, as adjusted (C) $75,819  $80,284  $76,025  $73,064  $60,244  $305,192  $204,773 
              
    Average diluted shares outstanding (D)  173,311   174,867   173,936   174,383   174,349   174,124   151,528 
              
    GAAP diluted earnings per share: A/D $0.41  $0.46  $0.44  $0.42  $0.13  $1.73  $0.89 
    Adjustments after-tax: B/D  0.03   -   -   -   0.22   0.02   0.46 
    Diluted earnings per common share excluding gain on acquisitions, merger expenses, hurricane expenses & effect of  tax rate change: C/D $0.44  $0.46  $0.44  $0.42  $0.35  $1.75  $1.35 
              
    ANNUALIZED RETURN ON AVERAGE ASSETS         
              
    Return on average assets: A/H  1.90%  2.14%  2.13%  2.08%  0.66%  2.06%  1.17%
    Return on average assets excluding gain on acquisitions, merger expenses, hurricane expenses & effect of tax rate change: (ROA, as adjusted) (A+F)/H  2.03%  2.14%  2.13%  2.08%  1.69%  2.10%  1.78%
    Return on average assets excluding intangible amortization: (A+C)/(H-I)  2.07%  2.33%  2.32%  2.27%  0.73%  2.25%  1.26%
    Return on average assets excluding intangible amortization, provision for loan losses, gain on acquisitions, merger expenses, hurricane expenses and income taxes (ROA, as fully adjusted): (A+B+D+E+G)/(H-I)  2.88%  3.07%  3.15%  3.07%  3.10%  3.04%  3.13%
              
    GAAP net income available to common shareholders (A) $71,030  $80,284  $76,025  $73,064  $23,309  $300,403  $135,083 
    Amortization of intangibles (B)  1,587   1,617   1,624   1,626   1,631   6,454   4,207 
    Amortization of intangibles after-tax (C)  1,172   1,194   1,200   1,201   991   4,767   2,557 
    Provision for loan losses excluding hurricane provision (D)  -   -   2,722   1,600   4,926   4,322   11,361 
    Total adjustments (E)  6,483   -   -   -   36,935   6,483   92,316 
    Adjustments after-tax (F)  4,789   -   -   -   36,935   4,789   69,690 
    Income tax expense excluding effect of tax rate change (G)  21,487   25,350   24,310   23,970   35,873   95,117   99,065 
    Average assets (H)  14,838,979   14,880,931   14,304,483   14,234,369   14,113,936   14,567,213   11,499,105 
    Average goodwill, core deposits & other intangible assets (I)  1,002,070   1,001,843   975,345   976,451   979,209   989,033   576,258 
              
              
    (1)  Hurricane expenses for 2018 include $470 of damage expense related to Hurricane Michael and expenses for 2017 include $32,889 of provision for loan losses and $556 of damage expense related to Hurricane Irma. 
    (2)  Effective tax rate of 26.135% for 2018 and 39.225% for 2017, adjusted for non-taxable gain on acquisition and non-deductible merger-related costs. 
              

     

     
     Home BancShares, Inc. 
    Non-GAAP Reconciliations
     (Unaudited)
             
      Quarter Ended
      Year Ended 
    (Dollars and shares in thousands,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31  Dec. 31,   Dec. 31,  Dec. 31, 
    except per share data)   2018   2018   2018   2018   2017   2018   2017 
             
    ANNUALIZED RETURN ON AVERAGE COMMON EQUITY        
             
    Return on average common equity: A/C  12.05%  13.74%  13.54%  13.38%  4.17%  13.17%  8.23%
    Return on average common equity excluding gain on acquisitions, merger expenses, hurricane expenses & effect of tax rate change: (ROE, as adjusted) (A+B)/C  12.86%  13.74%  13.54%  13.38%  10.77%  13.38%  12.48%
    Return on average tangible common equity: A/(C-D)  21.08%  24.20%  23.90%  23.94%  7.46%  23.25%  12.68%
    Return on average tangible common equity excluding gain on acquisitions, merger expenses, hurricane expenses & effect of tax rate change: (ROTCE, as adjusted) (A+B)/(C-D)  22.50%  24.20%  23.90%  23.94%  19.29%  23.62%  19.23%
             
    GAAP net income available to common shareholders (A) $71,030  $80,284  $76,025  $73,064  $23,309  $300,403  $135,083 
    Adjustments after-tax (B)  4,789   -   -   -   36,935   4,789   69,690 
    Average common equity (C)  2,338,802   2,317,930   2,251,412   2,214,302   2,218,549   2,281,055   1,641,278 
    Average goodwill, core deposits & other intangible assets (D)  1,002,070   1,001,843   975,345   976,451   979,209   989,033   576,258 
             
             
    EFFICIENCY RATIO        
             
    Efficiency ratio:  ((C-E)/(A+B+D))   42.18%  37.23%  36.74%  37.83%  37.05%  38.48%  41.89%
    Efficiency ratio, as adjusted:  ((C-E-G)/(A+B+D-F))   38.30%  37.40%  37.03%  37.97%  37.35%  37.67%  37.66%
             -      -      -  
    Net interest income (A)  $140,282  $145,910  $138,612  $136,209  $136,969  $561,013  $455,905 
    Non-interest income (B)   23,507   25,847   27,673   25,805   27,292   102,832   99,636 
    Non-interest expense (C)   71,272   66,123   63,228   63,380   63,218   264,003   240,208 
    Fully taxable equivalent adjustment (D)   1,412   1,489   1,403   1,209   1,983   5,513   7,856 
    Amortization of intangibles (E)   1,587   1,617   1,624   1,626   1,631   6,454   4,207 
             
    Adjustments:         
    Non-interest income:        
    Gain on acquisition $-  $-  $-  $-  $-  $-  $3,807 
    Gain (loss) on OREO  114   836   1,046   405   176   2,401   1,025 
    Gain (loss) on SBA loans  75   47   262   182   -   566   738 
    Gain (loss) on branches, equipment and other assets, net  (25)  (102)  -   7   2   (120)  (960)
    Gain (loss) on securities  -   -   -   -   1,193   -   2,132 
    Recoveries on historic losses  -   -   -   -   -   -   - 
    Total non-interest income adjustments (F) $164  $781  $1,308  $594  $1,371  $2,847  $6,742 
             
    Non-interest expense:        
    Merger Expenses $6,013  $-  $-  $-  $-  $6,013  $25,743 
    Hurricane damage expense  470   -   -   -   -   470   556 
    Vacant properties write-downs  -   -   -   -   -   -   47 
    Total non-interest expense adjustments (G) $6,483  $-  $-  $-  $-  $6,483  $26,346 
             

     

     
     Home BancShares, Inc. 
     Non-GAAP Reconciliations 
     (Unaudited) 
           
       Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,  Dec. 31, 
    (Dollars in thousands)  2018   2018   2018   2018   2017 
           
    TANGIBLE BOOK VALUE PER COMMON SHARE      
           
    Book value per common share: A/B $  13.76  $  13.44  $  13.26  $  12.89  $  12.70 
    Tangible book value per common share: (A-C-D)/B    7.90     7.68     7.52     7.27     7.07 
           
    Total stockholders' equity (A) $  2,349,886  $  2,341,026  $  2,314,013  $  2,238,181  $  2,204,291 
    End of period common shares outstanding (B)    170,720     174,135     174,511     173,603     173,633 
    Goodwill (C) $  958,408  $  958,408  $  956,418  $  927,949  $  927,949 
    Core deposit and other intangibles (D)    42,896     44,484     46,101     47,726     49,351 
           
           
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS      
           
    Equity to assets: B/A  15.36%  15.70%  15.51%  15.63%  15.25%
    Tangible common equity to tangible assets: (B-C-D)/(A-C-D)  9.43%  9.62%  9.42%  9.46%  9.11%
              -  
    Total assets (A) $  15,302,438  $  14,912,738  $  14,924,120  $  14,323,229  $  14,449,760 
    Total stockholders' equity (B)    2,349,886     2,341,026     2,314,013     2,238,181     2,204,291 
    Goodwill (C)    958,408     958,408     956,418     927,949     927,949 
    Core deposit and other intangibles (D)    42,896     44,484     46,101     47,726     49,351 
           

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