• Home BancShares, Inc. Remains Steady and Solid in First Quarter, Margin Remains Unchanged

    Source: Nasdaq GlobeNewswire / 18 Apr 2019 08:15:02   America/New_York

    CONWAY, Ark., April 18, 2019 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, released first quarter earnings today that included a net interest margin that remained flat from the fourth quarter of 2018 at 4.30%.

    Highlights of the First Quarter of 2019:

    Centennial Community Banking Centennial CFG
           
    Performance MetricQ1 2019Q4 2018 Performance MetricQ1 2019Q4 2018
    Net Income$58.1 million$57.7 million Net Income$12.0 million$12.2 million
    Total Revenue$166.9 million$165.9 million Total Revenue$31.1 million$30.6 million
    ROA1.80%1.77% ROA3.08%3.33%
    Net Interest Margin4.20%4.18% Net Interest Margin5.34%5.50%
    Purchase Accounting Accretion$8.3 million$8.6 million Purchase Accounting Accretion$33,000$33,000


    Shore Premier Finance Consolidated
           
    Performance MetricQ1 2019Q4 2018 Performance MetricQ1 2019Q4 2018
    Net Income$1.3 million$1.1 million Net Income$71.4 million$71.0 million
    Total Revenue$5.2 million$4.8 million Total Revenue$203.2 million$201.3 million
    ROA1.15%1.06% ROA1.92%1.90%
    Net Interest Margin3.04%3.29% Net Interest Margin4.30%4.30%
    Purchase Accounting Accretion$741,000$812,000 Purchase Accounting Accretion$9.1 million$9.4 million
        ROTCE (non-GAAP)(1)21.53%21.08%
        Diluted Earnings Per Share$0.42$0.41

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

    “Considering all the noise in the market the last two quarters, we are proud to maintain our net interest margin at 4.30% and to meet the earnings per share target of $0.42,” said John Allison, Chairman. “We think stability and good asset quality are important and outweigh the need for fast growth,” Allison continued.

    “Centennial Community Banking saw improvement in its net interest margin for the 1st quarter with 4.20%, up from 4.18% in the fourth quarter of 2018. Our core banking footprint remained steady during the recent chaos in the economy,” said Tracy French, Centennial Bank President and Chief Executive Officer.

    “With an increase in return on average assets, return on tangible common equity and meeting our EPS target, Home BancShares delivered another good solid quarter for our shareholders,” said Randy Sims, Home BancShares, Inc. Chief Executive Officer.

    Operating Highlights

    Our net interest margin was 4.30% for the three-month period ended March 31, 2019 and December 31, 2018. The yield on loans was 6.03% and 5.96% for the three months ended March 31, 2019 and December 31, 2018, respectively, as average loans increased from $10.88 billion to $11.04 billion. The rate on subordinated debentures increased from 5.61% as of December 31, 2018 to 5.78% as of March 31, 2019.  Since the interest expense on our subordinated debentures is on the 30/360 accrual method, the increase was primarily due to having two less days in the first quarter of 2019 compared to the fourth quarter of 2018, plus the increase in the floating rates on our trust preferred securities.  Additionally, the rate on interest bearing deposits increased to 1.34% as of March 31, 2019 from 1.22% as of December 31, 2018, with average balances of $8.50 billion and $8.20 billion, respectively.  The net interest margin for the quarter ended March 31, 2019 remained flat when compared to the quarter ended December 31, 2018 as the result of an increase in average interest earning assets and yield on interest earning assets, which was offset by an increase in interest bearing liabilities and yield on interest bearing liabilities.

    For the three months ended March 31, 2019 and December 31, 2018, we recognized $9.1 million and $9.4 million, respectively, in total net accretion for acquired loans and deposits.  Purchase accounting accretion on acquired loans was $9.0 million and $9.4 million and average purchase accounting loan discounts were $131.6 million and $141.2 million for the three-month periods ended March 31, 2019 and December 31, 2018, respectively.  Net accretion of time deposit premiums was $30,198 and $48,777 and net average remaining CD premiums were $357,000 and $396,000 for the three-month periods ended March 31, 2019 and December 31, 2018, respectively. 

    Net interest income on a fully taxable equivalent basis decreased $857,000, or 0.60%, to $140.8 million for the three-month period ended March 31, 2019, from $141.7 million for the three-month period ended December 31, 2018.  This decrease in net interest income for the three-month period ended March 31, 2019 was the result of a $2.5 million increase in interest expense on interest bearing liabilities, which was partially offset by a $1.7 million increase in interest income.  The $2.5 million increase in interest expense was primarily the result of a $2.8 million increase in interest expense on interest bearing deposits repricing in a higher interest rate environment, combined with a 3.7% increase in average interest-bearing deposits. The repricing of our interest-bearing liabilities in a higher interest rate environment resulted in an approximately $2.6 million increase in interest expense. The higher level of our interest-bearing liabilities resulted in an increase in interest expense of approximately $578,000.  These increases were partially offset by a decrease of approximately $648,000 in interest expense due to there being two less days in the first quarter of 2019 compared to the fourth quarter of 2018. The $1.7 million increase in interest income was primarily the result of a 1.6% increase in interest earning assets. The higher level of earning assets resulted in an increase in interest income of approximately $2.6 million and a $2.7 million increase in earning asset yields.  These increases were partially offset by a decrease of approximately $3.6 million in interest income due to there being two less days in the first quarter of 2019 compared to the fourth quarter of 2018. 

    Centennial CFG net interest margin was 5.34% for the quarter just ended compared to 5.50% for the quarter ended December 31, 2018. Centennial CFG net interest margin for the first quarter of 2019 includes average interest earning assets of $1.55 billion and net interest income of $20.4 million, compared to average interest earning assets of $1.46 billion and net interest income of $20.2 million for the quarter ended December 31, 2018. During 2018, Centennial CFG recognized $7.2 million of interest income from payoff events including minimum interest, default interest, acceleration of deferred origination fees and acceleration of other discounts.  Centennial CFG interest income events of approximately $1.0 million, $2.1 million, $4.0 million and $100,000 were recognized during the first, second, third and fourth quarters of 2018, respectively.  These interest income events impacted the Company’s net interest margin by 3, 6, 12 and 0 basis points for the first, second, third and fourth quarters of 2018, respectively.  During the first quarter of 2019, Centennial CFG had no interest income events as a result of payoffs.

    Centennial Community Banking (excluding Centennial CFG and Shore Premier Finance) net interest margin was 4.20% for the quarter just ended compared to 4.18% for the quarter ended December 31, 2018. The net interest margin for the first quarter of 2019 includes average interest earning assets of $11.31 billion and net interest income of $117.2 million, compared to average interest earning assets of $11.23 billion and net interest income of $118.2 million for the fourth quarter of 2018. 

    The acquisition of Shore Premier Finance is dilutive to our consolidated net interest margin by 3 basis points.

    During the first quarter of 2019 and the fourth quarter of 2018, the Company did not record a provision for loan loss.  The Company continues to see strong asset quality.  Non-performing loans to total loans was 0.58% as of March 31, 2019 and December 31, 2018, and non-performing assets to total assets was 0.52% as of March 31, 2019 compared to 0.51% as of December 31, 2018. For the first quarter of 2019, net charge-offs were $2.4 million compared to net charge-offs of $1.4 million for the fourth quarter of 2018.

    The Company reported $23.7 million of non-interest income for the first quarter of 2019, compared to $23.5 million for the fourth quarter of 2018. The most important components of the first quarter non-interest income were $6.6 million from other service charges and fees, $6.4 million from service charges on deposits accounts, $2.4 million from mortgage lending income, $2.5 million from other income and $3.5 million from dividends from the FHLB, FRB, FNBB & other equity investments.  During the first quarter of 2019, the Company received a $2.1 million special dividend from an equity investment. This special dividend was related to a significant income realization event generated in the first quarter of 2019 from one of the underlying assets in the equity investment. 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 first quarter of 2019 was $69.1 million compared to $71.3 million for the fourth quarter of 2018.  During the first quarter of 2019, the company incurred $900,000 in expense related to an outsourced special project. The Company also incurred $897,000 in hurricane expense associated with Hurricane Michael which made landfall in Mexico Beach, Florida on October 10, 2018. For the first quarter of 2019, our efficiency ratio was 41.01% compared to 42.18% reported for the fourth quarter of 2018. 

    Financial Condition

    Total loans receivable were $10.98 billion at March 31, 2019 compared to $11.07 billion at December 31, 2018.  Total deposits were $11.07 billion at March 31, 2019 compared to $10.90 billion at December 31, 2018.  Total assets were $15.18 billion at March 31, 2019 compared to $15.30 billion at December 31, 2018.

    During the first quarter 2019, the Company experienced approximately $92.9 million in organic loan decline.  Centennial Community Banking experienced approximately $76.3 million in organic loan decline. Centennial CFG experienced $25.1 million of organic loan decline and had loans of $1.52 billion at March 31, 2019.   Additionally, Shore Premier Finance experienced $8.5 million of loan growth and had loans of $436.2 million at March 31, 2019.

    Non-performing loans at March 31, 2019 were $17.7 million, $40.0 million, $3.0 million, $3.5 million and zero in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $64.2 million.  Non-performing assets at March 31, 2019 were $24.9 million, $48.2 million, $3.0 million, $3.5 million and zero in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $79.6 million. 

    The Company’s allowance for loan losses was $106.4 million at March 31, 2019, or 0.97% of total loans, compared to $108.8 million, or 0.98% of total loans, at December 31, 2018. As of March 31, 2019, and December 31, 2018, the Company’s allowance for loan losses was 165.7% and 169.4% of its total non-performing loans, respectively.

    Stockholders’ equity was $2.36 billion at March 31, 2019 compared to $2.35 billion at December 31, 2018, an increase of $11.6 million. The increase in stockholders’ equity is primarily associated with the $51.0 million increase in retained earnings, $9.5 million decrease in comprehensive loss and the repurchase of $51.7 million of our common stock during the first quarter of 2019.  Book value per common share was $14.04 at March 31, 2019 compared to $13.76 at December 31, 2018.  Tangible book value per common share (non-GAAP) was $8.10 at March 31, 2019 compared to $7.90 at December 31, 2018, an annualized increase of 10.3%. 

    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, April 18, 2019.  We encourage all participants to pre-register for the conference call using the following link:  http://dpregister.com/10129659.  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: 10129659, which will be available until April 25, 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, 2018 filed with the SEC on February 26, 2019.

    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) 
          
        Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,     Mar. 31,  
    (In thousands)  2019   2018   2018   2018   2018 
                         
    ASSETS                    
                         
    Cash and due from banks $141,027  $175,024  $208,681  $197,658  $185,479 
    Interest-bearing deposits with other banks  421,443   482,915   323,376   298,085   325,122 
    Cash and cash equivalents  562,470   657,939   532,057   495,743   510,601 
    Federal funds sold  1,700   325   500   500   1,825 
    Investment securities - available-for-sale  2,013,123   1,785,862   1,744,430   1,718,704   1,693,018 
    Investment securities - held-to-maturity  -   192,776   199,266   204,401   213,731 
    Loans receivable  10,978,935   11,071,879   10,832,815   10,897,970   10,325,736 
    Allowance for loan losses  (106,357)  (108,791)  (110,191)  (111,516)  (110,212)
    Loans receivable, net  10,872,578   10,963,088   10,722,624   10,786,454   10,215,524 
    Bank premises and equipment, net  279,012   233,261   233,652   234,634   235,607 
    Foreclosed assets held for sale  14,466   13,236   13,507   17,853   20,134 
    Cash value of life insurance  149,353   148,621   148,014   147,281   147,424 
    Accrued interest receivable  50,288   48,945   48,909   45,682   45,361 
    Deferred tax asset, net  64,061   73,275   79,548   78,435   78,328 
    Goodwill  958,408   958,408   958,408   956,418   927,949 
    Core deposit and other intangibles  41,310   42,896   44,484   46,101   47,726 
    Other assets  172,732   183,806   187,339   191,914   186,001 
    Total assets  $15,179,501  $15,302,438  $14,912,738  $14,924,120  $14,323,229 
                         
    LIABILITIES AND STOCKHOLDERS' EQUITY     
          
    Liabilities     
    Deposits:     
    Demand and non-interest-bearing $2,519,175  $2,401,232  $2,482,857  $2,523,553  $2,473,602 
    Savings and interest-bearing transaction accounts  6,650,181   6,624,407   6,420,951   6,573,902   6,437,408 
    Time deposits  1,898,096   1,874,139   1,720,930   1,638,578   1,485,605 
    Total deposits  11,067,452   10,899,778   10,624,738   10,736,033   10,396,615 
    Securities sold under agreements to repurchase  152,239   143,679   142,146   139,750   150,315 
    FHLB and other borrowed funds  1,105,175   1,472,393   1,363,851   1,309,950   1,115,061 
    Accrued interest payable and other liabilities  124,172   67,912   72,381   55,971   54,845 
    Subordinated debentures  368,979   368,790   368,596   368,403   368,212 
    Total liabilities   12,818,017   12,952,552   12,571,712   12,610,107   12,085,048 
                         
     Stockholders' equity      
    Common stock  1,682   1,707   1,741   1,745   1,736 
    Capital surplus  1,560,904   1,609,810   1,668,106   1,693,337   1,671,141 
    Retained earnings  803,170   752,184   701,900   642,540   585,586 
    Accumulated other comprehensive (loss) income  (4,272)  (13,815)  (30,721)  (23,609)  (20,282)
    Total stockholders' equity   2,361,484   2,349,886   2,341,026   2,314,013   2,238,181 
    Total liabilities and stockholders' equity  $15,179,501  $15,302,438  $14,912,738  $14,924,120  $14,323,229 
                         

     

      
     Home BancShares, Inc.  
     Consolidated Statements of Income  
     (Unaudited)  
              
      Quarter Ended  Three Months Ended 
       Mar. 31,  Dec. 31,   Sep. 30,   Jun. 30,  Mar. 31,   Mar. 31,  Mar. 31, 
    (In thousands)  2019  2018   2018   2018  2018   2019  2018 
                              
    Interest income                          
    Loans $  163,848 $  163,201  $  166,334  $  152,996 $  148,065  $  163,848 $  148,065 
    Investment securities                         
    Taxable    10,706    9,873     9,011     8,979    8,970     10,706    8,970 
    Tax-exempt    3,379    3,456     3,427     3,368    3,006     3,379    3,006 
    Deposits - other banks    1,543    1,241     1,273     1,206    929     1,543    929 
    Federal funds sold    11    9     6     12    6     11    6 
                              
    Total interest income    179,487    177,780     180,051     166,561    160,976     179,487    160,976 
                              
    Interest expense                         
    Interest on deposits    28,006    25,207     21,412     18,164    14,806     28,006    14,806 
    Federal funds purchased    -     -      -      -     1     -     1 
    FHLB borrowed funds    6,118    6,474     7,055     4,245    4,580     6,118    4,580 
    Securities sold under agreements to repurchase    634    602     472     372    376     634    376 
    Subordinated debentures    5,259    5,215     5,202     5,168    5,004     5,259    5,004 
                              
    Total interest expense    40,017    37,498     34,141     27,949    24,767     40,017    24,767 
                              
    Net interest income     139,470    140,282     145,910     138,612    136,209     139,470    136,209 
    Provision for loan losses    -     -      -      2,722    1,600     -     1,600 
    Net interest income after provision for loan losses     139,470    140,282     145,910     135,890    134,609     139,470    134,609 
                              
    Non-interest income                          
    Service charges on deposit accounts    6,401    7,004     6,992     6,780    6,075     6,401    6,075 
    Other service charges and fees    6,563    7,598     9,041     9,797    10,155     6,563    10,155 
    Trust fees    403    290     437     379    446     403    446 
    Mortgage lending income    2,435    2,554     3,691     3,477    2,657     2,435    2,657 
    Insurance commissions    609    442     463     526    679     609    679 
    Increase in cash value of life insurance    736    737     735     730    654     736    654 
    Dividends from FHLB, FRB, FNBB & other    3,505    1,992     1,288     1,600    877     3,505    877 
    Gain (loss) on SBA loans    241    75     47     262    182     241    182 
    Gain (loss) on branches, equipment and other assets, net    79    (25)    (102)    -     7     79    7 
    Gain (loss) on OREO, net    206    114     836     1,046    405     206    405 
    Other income    2,494    2,726     2,419     3,076    3,668     2,494    3,668 
                              
    Total non-interest income    23,672    23,507     25,847     27,673    25,805     23,672    25,805 
                              
    Non-interest expense                          
    Salaries and employee benefits    37,836    36,230     37,825     34,476    35,014     37,836    35,014 
    Occupancy and equipment    8,823    8,310     8,148     8,519    8,983     8,823    8,983 
    Data processing expense    3,970    3,642     3,461     3,339    3,986     3,970    3,986 
    Other operating expenses    18,428    23,090     16,689     16,894    15,397     18,428    15,397 
                              
    Total non-interest expense    69,057    71,272     66,123     63,228    63,380     69,057    63,380 
                              
    Income before income taxes     94,085    92,517     105,634     100,335    97,034     94,085    97,034 
    Income tax expense    22,735    21,487     25,350     24,310    23,970     22,735    23,970 
    Net income  $  71,350 $  71,030  $  80,284  $  76,025 $  73,064  $  71,350 $  73,064 
                              

     

     Home BancShares, Inc. 
     Selected Financial Information 
     (Unaudited) 
             
      Quarter Ended  Three Months Ended 
    (Dollars and shares in thousands,    Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,   Mar. 31,   Mar. 31, 
    except per share data)  2019   2018   2018   2018   2018   2019   2018 
                                 
    PER SHARE DATA                            
                                 
    Diluted earnings per common share $  0.42  $  0.41  $  0.46  $  0.44  $  0.42  $  0.42  $  0.42 
    Diluted earnings per common share, as adjusted, excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense (non-GAAP)(1)    0.42     0.44     0.46     0.44     0.42     0.42     0.42 
    Basic earnings per common share    0.42     0.41     0.46     0.44     0.42     0.42     0.42 
    Dividends per share - common    0.1200     0.1200     0.1200     0.1100     0.1100     0.1200     0.1100 
    Book value per common share    14.04     13.76     13.44     13.26     12.89     14.04     12.89 
    Tangible book value per common share (non-GAAP)(1)    8.10     7.90     7.68     7.52     7.27     8.10     7.27 
                                 
                                 
    STOCK INFORMATION                            
                                 
    Average common shares outstanding  169,592   173,023   174,440   173,403   173,761   169,592   173,761 
    Average diluted shares outstanding  169,592   173,311   174,867   173,936   174,383   169,592   174,383 
    End of period common shares outstanding  168,173   170,720   174,135   174,511   173,603   168,173   173,603 
                                 
                                 
    ANNUALIZED PERFORMANCE METRICS                            
                                 
    Return on average assets  1.92%  1.90%  2.14%  2.13%  2.08%  1.92%  2.08%
    Return on average assets excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense (ROA, as adjusted) (non-GAAP)(1)  1.91%  2.03%  2.14%  2.13%  2.08%  1.91%  2.08%
    Return on average assets excluding intangible amortization (non-GAAP)(1)  2.09%  2.07%  2.33%  2.32%  2.27%  2.09%  2.27%
    Return on average common equity  12.34%  12.05%  13.74%  13.54%  13.38%  12.34%  13.38%
    Return on average common equity excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROE, as adjusted) (non-GAAP)(1)  12.30%  12.86%  13.74%  13.54%  13.38%  12.30%  13.38%
    Return on average tangible common equity (non-GAAP)(1)  21.53%  21.08%  24.20%  23.90%  23.94%  21.53%  23.94%
    Return on average tangible common equity excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROTCE, as adjusted) (non-GAAP)(1)  21.45%  22.50%  24.20%  23.90%  23.94%  21.45%  23.94%
    Efficiency ratio  41.01%  42.18%  37.23%  36.74%  37.83%  41.01%  37.83%
    Efficiency ratio, as adjusted (non-GAAP)(1)  40.58%  38.30%  37.40%  37.03%  37.97%  40.58%  37.97%
    Net interest margin - FTE  4.30%  4.30%  4.46%  4.47%  4.46%  4.30%  4.46%
    Fully taxable equivalent adjustment $  1,367  $  1,412  $  1,489  $  1,403  $  1,209  $  1,367  $  1,209 
    Total revenue    203,159     201,287     205,898     194,234     186,781     203,159     186,781 
    Total purchase accounting accretion    9,055     9,432     10,744     10,669     10,608     9,055     10,608 
    Average purchase accounting loan discounts    131,596     141,244     151,377     153,624     164,122     131,596     164,122 
                                 
                                 
    OTHER OPERATING EXPENSES                            
                                 
    Advertising $  1,051  $  1,214  $  1,154  $  1,142  $  962  $  1,051  $  962 
    Merger and acquisition expenses    -      6,013     -      -      -      -      -  
    Amortization of intangibles    1,587     1,587     1,617     1,624     1,626     1,587     1,626 
    Electronic banking expense    1,903     1,969     1,947     1,828     1,878     1,903     1,878 
    Directors' fees    434     319     314     318     330     434     330 
    Due from bank service charges    238     289     253     242     219     238     219 
    FDIC and state assessment    1,710     1,869     2,293     2,788     1,608     1,710     1,608 
    Hurricane expense    897     470     -      -      -      897     -  
    Insurance    697     737     762     714     887     697     887 
    Legal and accounting    981     1,151     761     858     778     981     778 
    Other professional fees    2,812     1,465     1,748     1,601     1,639     2,812     1,639 
    Operating supplies    536     510     510     602     600     536     600 
    Postage    326     325     311     323     344     326     344 
    Telephone    303     324     337     371     373     303     373 
    Other expense    4,953     4,848     4,682     4,483     4,153     4,953     4,153 
                                 
    Total other operating expenses  $  18,428  $  23,090  $  16,689  $  16,894  $  15,397  $  18,428  $  15,397 
                                 
                                 
     (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) 
          
       Mar. 31,   Dec. 31,   Sep. 30,   June. 30,   Mar. 31, 
    (Dollars in thousands)  2019   2018   2018   2018   2018 
                         
    BALANCE SHEET RATIOS                    
                         
    Total loans to total deposits  99.20%  101.58%  101.96%  101.51%  99.32%
    Common equity to assets  15.56%  15.36%  15.70%  15.51%  15.63%
    Tangible common equity to tangible assets (non-GAAP)(1)  9.60%  9.43%  9.62%  9.42%  9.46%
                         
                         
    LOANS RECEIVABLE                    
                         
    Real estate                    
    Commercial real estate loans                    
    Non-farm/non-residential $  4,623,174  $  4,806,684  $  4,685,827  $  4,734,315  $  4,658,209 
    Construction/land development    1,649,303     1,546,035     1,550,910     1,662,199     1,641,834 
    Agricultural    76,092     76,433     72,930     77,053     81,151 
    Residential real estate loans                    
    Residential 1-4 family    1,947,119     1,975,586     1,982,666     1,960,841     1,915,346 
    Multifamily residential    538,098     560,475     608,608     540,526     464,194 
    Total real estate    8,833,786     8,965,213     8,900,941     8,974,934     8,760,734 
    Consumer    448,093     443,105     428,192     417,499     40,842 
    Commercial and industrial    1,505,773     1,476,331     1,303,841     1,287,637     1,324,173 
    Agricultural    58,966     48,562     58,644     55,768     50,770 
    Other    132,317     138,668     141,197     162,132     149,217 
    Loans receivable $  10,978,935  $  11,071,879  $  10,832,815  $  10,897,970  $  10,325,736 
                         
    Discount for credit losses on purchased loans $  106,617  $  113,648  $  120,849  $  129,903  $  137,404 
    Purchased loans, net of discount for credit losses on purchased loans    2,712,315     2,900,284     3,081,695     3,522,753     3,232,004 
                         
                         
    ALLOWANCE FOR LOAN LOSSES                    
                         
    Balance, beginning of period $  108,791  $  110,191  $  111,516  $  110,212  $  110,266 
    Loans charged off    3,391     1,814     2,501     2,132     2,540 
    Recoveries of loans previously charged off    957     414     1,176     714     886 
    Net loans (recovered)/charged off    2,434     1,400     1,325     1,418     1,654 
    Provision for loan losses    -      -      -      2,722     1,600 
    Balance, end of period $  106,357  $  108,791  $  110,191  $  111,516  $  110,212 
                         
    Net (recoveries) charge-offs to average total loans  0.09%  0.05%  0.05%  0.05%  0.06%
    Allowance for loan losses to total loans  0.97%  0.98%  1.02%  1.02%  1.07%
                         
                         
    NON-PERFORMING ASSETS                    
                         
    Non-performing loans                    
    Non-accrual loans $  49,616  $  47,083  $  36,198  $  37,082  $  36,266 
    Loans past due 90 days or more    14,577     17,159     20,267     19,696     13,223 
    Total non-performing loans    64,193     64,242     56,465     56,778     49,489 
    Other non-performing assets                    
    Foreclosed assets held for sale, net    14,466     13,236     13,507     17,853     20,134 
    Other non-performing assets    947     497     405     3     3 
    Total other non-performing assets    15,413     13,733     13,912     17,856     20,137 
    Total non-performing assets $  79,606  $  77,975  $  70,377  $  74,634  $  69,626 
                         
    Allowance for loan losses for loans to non-performing loans  165.68%  169.35%  195.15%  196.41%  222.70%
    Non-performing loans to total loans  0.58%  0.58%  0.52%  0.52%  0.48%
    Non-performing assets to total assets  0.52%  0.51%  0.47%  0.50%  0.49%
                         
          
     (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 
      March 31, 2019 December 31, 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 $272,410 $1,543 2.30% $244,551 $1,241 2.01% 
    Federal funds sold  1,491  11 2.99%  741  9 4.82% 
    Investment securities - taxable  1,595,605  10,706 2.72%  1,553,467  9,873 2.52% 
    Investment securities - non-taxable - FTE  390,754  4,424 4.59%  400,742  4,453 4.41% 
    Loans receivable - FTE  11,036,503  164,170 6.03%  10,884,911  163,616 5.96% 
    Total interest-earning assets  13,296,763  180,854 5.52%  13,084,412  179,192 5.43% 
    Non-earning assets  1,782,909       1,754,567      
    Total assets $15,079,672      $14,838,979      
                      
    LIABILITIES AND SHAREHOLDERS' EQUITY                 
    Liabilities                 
    Interest-bearing liabilities                 
    Savings and interest-bearing transaction accounts $6,596,895 $19,537 1.20% $6,405,419 $17,873 1.11% 
    Time deposits  1,903,373  8,469 1.80%  1,794,358  7,334 1.62% 
    Total interest-bearing deposits  8,500,268  28,006 1.34%  8,199,777  25,207 1.22% 
    Securities sold under agreement to repurchase  150,803  634 1.71%  147,895  602 1.61% 
    FHLB borrowed funds  1,159,629  6,118 2.14%  1,242,985  6,474 2.07% 
    Subordinated debentures  368,884  5,259 5.78%  368,695  5,215 5.61% 
    Total interest-bearing liabilities  10,179,584  40,017 1.59%  9,959,352  37,498 1.49% 
    Non-interest bearing liabilities                 
    Non-interest bearing deposits  2,439,520       2,464,003      
    Other liabilities  115,911       76,822      
    Total liabilities  12,735,015       12,500,177      
    Shareholders' equity  2,344,657       2,338,802      
    Total liabilities and shareholders' equity $15,079,672      $14,838,979      
    Net interest spread       3.93%       3.94% 
    Net interest income and margin - FTE    $140,837 4.30%    $141,694 4.30% 
                      

     

     
     Home BancShares, Inc. 
     Consolidated Net Interest Margin 
     (Unaudited) 
           
       Three Months Ended 
     
       March 31, 2019 
      March 31, 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 $272,410 $1,543 2.30% $245,815 $929 1.53% 
    Federal funds sold  1,491  11 2.99%  9,682  6 0.25% 
    Investment securities - taxable  1,595,605  10,706 2.72%  1,560,464  8,970 2.33% 
    Investment securities - non-taxable - FTE  390,754  4,424 4.59%  345,217  3,997 4.70% 
    Loans receivable - FTE  11,036,503  164,170 6.03%  10,325,439  148,283 5.82% 
    Total interest-earning assets  13,296,763  180,854 5.52%  12,486,617  162,185 5.27% 
    Non-earning assets  1,782,909       1,747,752      
    Total assets $15,079,672      $14,234,369      
                      
    LIABILITIES AND SHAREHOLDERS' EQUITY                 
    Liabilities                 
    Interest-bearing liabilities                 
    Savings and interest-bearing transaction accounts $6,596,895 $19,537 1.20% $6,409,585 $11,242 0.71% 
    Time deposits  1,903,373  8,469 1.80%  1,513,854  3,564 0.95% 
    Total interest-bearing deposits  8,500,268  28,006 1.34%  7,923,439  14,806 0.76% 
    Federal funds purchased  -  - 0.00%  78  1 5.20% 
    Securities sold under agreement to repurchase  150,803  634 1.71%  152,716  376 1.00% 
    FHLB borrowed funds  1,159,629  6,118 2.14%  1,150,091  4,580 1.62% 
    Subordinated debentures  368,884  5,259 5.78%  368,124  5,004 5.51% 
    Total interest-bearing liabilities  10,179,584  40,017 1.59%  9,594,448  24,767 1.05% 
    Non-interest bearing liabilities                 
    Non-interest bearing deposits  2,439,520       2,381,259      
    Other liabilities  115,911       44,360      
    Total liabilities  12,735,015       12,020,067      
    Shareholders' equity  2,344,657       2,214,302      
    Total liabilities and shareholders' equity $15,079,672      $14,234,369      
    Net interest spread       3.93%       4.22% 
    Net interest income and margin - FTE    $140,837 4.30%    $137,418 4.46% 
                      

     

     
     Home BancShares, Inc. 
     Non-GAAP Reconciliations 
     (Unaudited) 
             
      Quarter Ended  Three Months Ended
     
    (Dollars and shares in thousands,  Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,   Mar. 31,  Mar. 31, 
    except per share data)  2019  2018  2018  2018  2018   2019  2018 
                            
    EARNINGS, AS ADJUSTED                       
                            
    GAAP net income available to common shareholders (A) $  71,350 $  71,030 $  80,284 $  76,025 $  73,064  $  71,350 $  73,064 
    Adjustments                       
    Special dividend from equity investment    (2,134)   -     -     -     -      (2,134)   -  
    Merger and acquisition expenses    -     6,013    -     -     -      -     -  
    Hurricane expenses    897    470    -     -     -      897    -  
    Outsourced special project expense    900    -     -     -     -      900    -  
    Total adjustments    (337)   6,483    -     -     -      (337)   -  
    Tax-effect of adjustments    (88)   1,694    -     -     -      (88)   -  
    Adjustments after-tax (B)    (249)   4,789    -     -     -      (249)   -  
    Earnings, as adjusted (C) $  71,101 $  75,819 $  80,284 $  76,025 $  73,064  $  71,101 $  73,064 
                            
    Average diluted shares outstanding (D)    169,592    173,311    174,867    173,936    174,383     169,592    174,383 
                            
    GAAP diluted earnings per share: (A/D) $  0.42 $  0.41 $  0.46 $  0.44 $  0.42  $  0.42 $  0.42 
    Adjustments after-tax: (B/D)    -     0.03    -     -     -      -     -  
    Diluted earnings per common share excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (C/D) $  0.42 $  0.44 $  0.46 $  0.44 $  0.42  $  0.42 $  0.42 
                            
                            
    ANNUALIZED RETURN ON AVERAGE ASSETS                       
                            
    Return on average assets: (A/F)  1.92% 1.90% 2.14% 2.13% 2.08%  1.92% 2.08%
    Return on average assets excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROA, as adjusted) ((A+E)/F)  1.91% 2.03% 2.14% 2.13% 2.08%  1.91% 2.08%
    Return on average assets excluding intangible amortization: ((A+C)/(F-G))  2.09% 2.07% 2.33% 2.32% 2.27%  2.09% 2.27%
                            
    GAAP net income available to common shareholders (A) $  71,350 $  71,030 $  80,284 $  76,025 $  73,064  $  71,350 $  73,064 
    Amortization of intangibles (B)    1,587    1,587    1,617    1,624    1,626     1,587    1,626 
    Amortization of intangibles after-tax (C)    1,172    1,172    1,194    1,200    1,201     1,172    1,201 
    Total adjustments (D)    (337)   6,483    -     -     -      (337)   -  
    Adjustments after-tax (E)    (249)   4,789    -     -     -      (249)   -  
    Average assets (F)  15,079,672  14,838,979  14,880,931  14,304,483  14,234,369   15,079,672  14,234,369 
    Average goodwill, core deposits & other intangible assets (G)    1,000,494    1,002,070    1,001,843    975,345    976,451     1,000,494    976,451 
                            

     

     
     Home BancShares, Inc. 
     Non-GAAP Reconciliations 
     (Unaudited) 
                            
       Quarter Ended    Three Months Ended 
     
    (Dollars and shares in thousands,  Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,   Mar. 31,  Mar. 31, 
    except per share data)  2019  2018  2018  2018  2018   2019  2018 
                            
    ANNUALIZED RETURN ON AVERAGE COMMON EQUITY                       
                            
    Return on average common equity: (A/C)  12.34% 12.05% 13.74% 13.54% 13.38%  12.34% 13.38%
    Return on average common equity excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROE, as adjusted) ((A+B)/C)  12.30% 12.86% 13.74% 13.54% 13.38%  12.30% 13.38%
    Return on average tangible common equity: (A/(C-D))  21.53% 21.08% 24.20% 23.90% 23.94%  21.53% 23.94%
    Return on average tangible common equity excluding special dividend from equity investment, merger expenses, hurricane expenses & outsourced special project expense: (ROTCE, as adjusted) ((A+B)/(C-D))  21.45% 22.50% 24.20% 23.90% 23.94%  21.45% 23.94%
                            
    GAAP net income available to common shareholders (A) $  71,350 $  71,030 $  80,284 $  76,025 $  73,064  $  71,350 $  73,064 
    Adjustments after-tax (B)    (249)   4,789    -     -     -      (249)   -  
    Average common equity (C)  2,344,657  2,338,802  2,317,930  2,251,412  2,214,302   2,344,657  2,214,302 
    Average goodwill, core deposits & other intangible assets (D)  1,000,494  1,002,070  1,001,843  975,345  976,451   1,000,494  976,451 
                            
                            
    EFFICIENCY RATIO                       
                            
    Efficiency ratio:  ((C-E)/(A+B+D))  41.01% 42.18% 37.23% 36.74% 37.83%  41.01% 37.83%
    Efficiency ratio, as adjusted:  ((C-E-G)/(A+B+D-F))  40.58% 38.30% 37.40% 37.03% 37.97%  40.58% 37.97%
                            
    Net interest income (A) $  139,470 $  140,282 $  145,910 $  138,612 $  136,209  $  139,470 $  136,209 
    Non-interest income (B)    23,672    23,507    25,847    27,673    25,805     23,672    25,805 
    Non-interest expense (C)    69,057    71,272    66,123    63,228    63,380     69,057    63,380 
    Fully taxable equivalent adjustment (D)    1,367    1,412    1,489    1,403    1,209     1,367    1,209 
    Amortization of intangibles (E)    1,587    1,587    1,617    1,624    1,626     1,587    1,626 
                            
    Adjustments:                       
    Non-interest income:                       
    Special dividend from equity investment $  2,134 $  -  $  -  $  -  $  -   $  2,134 $  -  
    Gain (loss) on OREO    206    114    836    1,046    405     206    405 
    Gain (loss) on SBA loans    241    75    47    262    182     241    182 
    Gain (loss) on branches, equipment and other assets, net    79    (25)   (102)   -     7     79    7 
       Total non-interest income adjustments (F) $  2,660 $  164 $  781 $  1,308 $  594  $  2,660 $  594 
                            
    Non-interest expense:                       
    Merger Expenses $  -  $  6,013 $  -  $  -  $  -   $  -  $  -  
    Hurricane damage expense    897    470    -     -     -      897    -  
    Outsourced special project expense    900    -     -     -     -      900    -  
       Total non-interest expense adjustments (G) $  1,797 $  6,483 $  -  $  -  $  -   $  1,797 $  -  
                            

     

     
     Home BancShares, Inc. 
     Non-GAAP Reconciliations 
     (Unaudited) 
                         
       Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, 
    (Dollars in thousands)  2019   2018   2018   2018   2018 
                         
    TANGIBLE BOOK VALUE PER COMMON SHARE                    
                         
    Book value per common share: (A/B) $  14.04  $  13.76  $  13.44  $  13.26  $  12.89 
    Tangible book value per common share: ((A-C-D)/B)    8.10     7.90     7.68     7.52     7.27 
                         
    Total stockholders' equity (A) $  2,361,484  $  2,349,886  $  2,341,026  $  2,314,013  $  2,238,181 
    End of period common shares outstanding (B)    168,173     170,720     174,135     174,511     173,603 
    Goodwill (C) $  958,408  $  958,408  $  958,408  $  956,418  $  927,949 
    Core deposit and other intangibles (D)    41,310     42,896     44,484     46,101     47,726 
                         
                         
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS                    
                         
    Equity to assets: (B/A)  15.56%  15.36%  15.70%  15.51%  15.63%
    Tangible common equity to tangible assets: ((B-C-D)/(A-C-D))  9.60%  9.43%  9.62%  9.42%  9.46%
                         
    Total assets (A) $  15,179,501  $  15,302,438  $  14,912,738  $  14,924,120  $  14,323,229 
    Total stockholders' equity (B)    2,361,484     2,349,886     2,341,026     2,314,013     2,238,181 
    Goodwill (C)    958,408     958,408     958,408     956,418     927,949 
    Core deposit and other intangibles (D)    41,310     42,896     44,484     46,101     47,726 
                         


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