HOMB Raises the Bar with Best in Class Performance Metrics
CONWAY, Ark., Jan. 21, 2021 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, released record quarterly earnings today.
Highlights of the Fourth Quarter of 2020:
| Metric | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 |
| Net Income | $81.8 million | $69.3 million | $62.8 million | $507,000 | $73.3 million |
| Total Revenue (net) | $181.9 million | $176.1 million | $173.7 million | $162.7 million | $167.8 million |
| Income (loss) before income taxes | $107.7 million | $90.4 million | $82.1 million | ($2.4 million) | $96.5 million |
| Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (PPNR) (non-GAAP)(1) | $107.7 million | $104.4 million | $102.7 million | $92.2 million | $96.5 million |
| Pre-tax net income to total revenue (net) | 59.19% | 51.32% | 47.25% | -1.49 | 57.49% |
| P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) | 59.19% | 59.28% | 59.15% | 56.67% | 57.49% |
| ROA | 1.97% | 1.66% | 1.55% | 0.01% | 1.94% |
| ROA (pre-tax net income, excluding provision for credit losses and unfunded commitment expense) (non-GAAP)(1) | 2.60% | 2.50% | 2.53% | 2.45% | 2.56% |
| ROA, excluding provision for credit losses and unfunded commitment expense (non-GAAP)(1) | 1.97% | 1.91% | 1.92% | 1.87% | 1.94% |
| NIM | 4.00% | 3.92% | 4.11% | 4.22% | 4.24% |
| NIM, excluding PPP loans (non-GAAP)(1) | 3.97% | 3.98% | 4.16% | 4.22% | 4.24% |
| Purchase Accounting Accretion | $5.7 million | $7.0 million | $7.0 million | $7.6 million | $9.1 million |
| ROE | 12.72% | 10.97% | 10.27% | 0.08% | 11.71% |
| ROTCE (non-GAAP)(1) | 20.96% | 18.29% | 17.40% | 0.14% | 19.55% |
| Diluted Earnings Per Share | $0.50 | $0.42 | $0.38 | $0.00 | $0.44 |
| Non-Performing Assets to Total Assets | 0.48% | 0.47% | 0.39% | 0.44% | 0.43% |
| Common Equity Tier 1 Capital | 13.4% | 12.6% | 12.0% | 11.5% | 12.4% |
| Leverage | 10.8% | 10.4% | 10.3% | 10.8% | 11.3% |
| Tier 1 Capital | 14.0% | 13.2% | 12.6% | 12.1% | 13.0% |
| Total Risk-Based Capital | 17.8% | 16.9% | 16.2% | 15.7% | 16.4% |
| Allowance for Credit Losses to Total Loans | 2.19% | 2.12% | 1.99% | 2.01% | 0.94% |
| Allowance for Credit Losses to Total Loans, excluding PPP loans (non-GAAP)(1) | 2.33% | 2.29% | 2.15% | 2.01% | 0.94% |
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
“While 2020 was dark in many ways, the lights were definitely on at Home BancShares,” stated John Allison. “Q1 was an anomaly with the implementation of CECL, but it was followed up with record numbers in quarters two, three and four, and for that, I couldn’t be more pleased,” Allison continued. “Fifty cents earnings per share is a record I’m particularly proud of,” added Allison.
“Our talented team of bankers delivered record net income for the quarter of $81.8 million and our income before income taxes came in strong at $107.7 million,” said Tracy French. “During one of the hardest years for business and the economy, I’m proud of how our bankers worked to assist their customers in their time of need while still churning out impressive best in class numbers throughout the year,” continued French.
Operating Highlights
Net income and earnings per share were quarterly records for the Company. Net income increased $12.5 million, or 17.99%, to $81.8 million for the three-month period ended December 31, 2020, from $69.3 million for the three-month period ended September 30, 2020. Earnings per share increased $0.08 per share, or 19.05%, to $0.50 per share for the three-month period ended December 31, 2020, from $0.42 per share for the three-month period ended September 30, 2020.
During the fourth quarter of 2020, the Company did not record any credit loss expense. The Company’s provisioning model is closely tied to unemployment rate projections which continued to improve through the end of 2020.
Our net interest margin was 4.00% for the three-month period ended December 31, 2020 compared to 3.92% for the three-month period ended September 30, 2020. The yield on loans was 5.33% and 5.24% for the three months ended December 31, 2020 and September 30, 2020, respectively, as average loans decreased from $11.76 billion to $11.46 billion. Additionally, the rate on interest bearing deposits decreased to 0.44% as of December 31, 2020 from 0.54% as of September 30, 2020, with average balances of $9.59 billion and $9.68 billion, respectively.
As of December 31, 2020, we had $691.7 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 December 31, 2020 was 3.97%(1). The PPP loans had a 6-basis point accretive impact to the yield on loans, and the PPP loans were accretive to the net interest margin by 3 basis points. This was primarily due to approximately $157.0 million of the Company’s PPP loans being forgiven during the fourth quarter of 2020 as well as the acceleration of deferred fees for the loans that were forgiven. The deferred fee income increased from $3.8 million to $6.9 million for the three-month periods ended September 30, 2020 and December 31, 2020, respectively.
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(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
The COVID-19 pandemic has created a significant amount of excess liquidity in the market. As a result of this excess liquidity, we had an increase of $102.3 million of average interest-bearing cash balances in the fourth quarter of 2020 compared to the third quarter of 2020. This excess liquidity diluted the net interest margin by 3 basis points.
Purchase accounting accretion on acquired loans was $5.7 million and $7.0 million and average purchase accounting loan discounts were $49.6 million and $55.8 million for the three-month periods ended December 31, 2020 and September 30, 2020, respectively. Net amortization of time deposit premiums was $30,000 per quarter and net average remaining time deposit premiums were $146,000 and $176,000 for the three-month periods ended December 31, 2020 and September 30, 2020, respectively.
Net interest income on a fully taxable equivalent basis increased $2.1 million, or 1.4%, to $149.8 million for the three-month period ended December 31, 2020, from $147.7 million for the three-month period ended September 30, 2020. This increase in net interest income for the three-month period ended December 31, 2020 was the result of a $3.0 million decrease in interest expense, which was partially offset by a $875,000 decrease in interest income. The $3.0 million decrease in interest expense was primarily the result of a $2.6 million decrease in interest expense on deposits and a $318,000 decrease in interest expense on FHLB borrowings. The $875,000 decrease in interest income was primarily the result of a $1.4 million decrease in loan interest income, which was partially offset by a $492,000 net increase in investment income.
The Company reported $33.9 million of non-interest income for the fourth quarter of 2020. The most important components of the fourth quarter non-interest income were $10.1 million from mortgage lending income, $8.4 million from other service charges and fees, $5.5 million from service charges on deposit accounts, and $2.6 million from other income. Non-interest income for the fourth quarter of 2020 included a $4.3 million adjustment for the increase in fair market value of marketable securities.
Mortgage lending income was $10.1 million for the three-month period ended December 31, 2020, compared to $10.2 million for the three-month period ended September 30, 2020, as the Company experienced a significant increase in secondary market loan sales in 2020. The housing market continues to benefit from the current low interest rate environment.
Non-interest expense for the fourth quarter of 2020 was $74.2 million. The most important components of the fourth quarter non-interest expense were $43.0 million from salaries and employee benefits, $16.2 million in other expense and $9.8 million in occupancy and equipment expenses. For the fourth quarter of 2020, our efficiency ratio was 39.64%.
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(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
Financial Condition
Total loans receivable were $11.22 billion at December 31, 2020 compared to $11.69 billion at September 30, 2020. Total deposits were $12.73 billion at December 31, 2020 compared to $12.94 billion at September 30, 2020. Total assets were $16.40 billion at December 31, 2020 compared to $16.55 billion at September 30, 2020.
During the fourth quarter 2020, the Company experienced approximately $470.7 million in organic loan decline. Centennial CFG experienced $149.0 million of organic loan decline and had loans of $1.54 billion at December 31, 2020. Our legacy footprint experienced $157.0 million in PPP loan decline and $164.7 million in organic loan decline during the quarter.
Non-performing loans to total loans was 0.66% as of December 31, 2020 compared to 0.63% as of September 30, 2020. Non-performing assets to total assets increased slightly from 0.47% as of September 30, 2020 to 0.48% as of December 31, 2020. For the fourth quarter of 2020, net charge-offs were $2.8 million compared to net charge-offs of $4.1 million for the third quarter of 2020.
Non-performing loans at December 31, 2020 were $24.1 million, $43.1 million, $530,000, $3.6 million and $2.8 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $74.1 million. Non-performing assets at December 31, 2020 were $25.6 million, $46.0 million, $564,000, $3.6 million and $2.8 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $78.6 million.
The Company’s allowance for credit losses on loans was $245.5 million at December 31, 2020, or 2.19% of total loans, compared to the allowance for loan losses of $248.2 million, or 2.12% of total loans, at September 30, 2020. The Company’s allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.33%(1) at December 31, 2020. As of December 31, 2020 and September 30, 2020, the Company’s allowance for credit losses on loans and allowance for loan losses was 331.10% and 336.42% of its total non-performing loans, respectively.
Stockholders’ equity was $2.61 billion at December 31, 2020 compared to $2.54 billion at September 30, 2020, an increase of approximately $65.0 million. The increase in stockholders’ equity is primarily associated with the $58.7 million increase in retained earnings. Book value per common share was $15.78 at December 31, 2020 compared to $15.38 at September 30, 2020. Tangible book value per common share (non-GAAP) was $9.70(1) at December 31, 2020 compared to $9.30(1) at September 30, 2020, an increase of 17.11% 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 77 branches in Arkansas, 78 branches in Florida, 5 branches in Alabama and one branch in New York City.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, January 21, 2021. We encourage all participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10150658/df97bab01e. 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: 10150658, which will be available until January 28, 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 net income, excluding provision for credit losses and unfunded commitment expense; pre-tax, pre-provision, profit percentage; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets (pre-tax net income, excluding provision for credit losses and unfunded commitment expense); return on average assets, excluding provision for credit losses and unfunded commitment expense; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity, as adjusted; efficiency ratio, as adjusted; net interest margin, excluding PPP loans; allowance for credit losses to total loans, excluding PPP loans; tangible book value per common share and tangible common equity to tangible assets--to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions (including the effect of the PPP loans) that management believes are not indicative of the Company’s primary business operating results. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
General
This release may contain forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors include, but are not limited to, the following: economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment; disruptions, uncertainties and related effects on our business and operations as a result of the ongoing coronavirus (COVID-19) pandemic and measures that have been or may be implemented or imposed in response to the pandemic, including the impact on, among other things, credit quality and liquidity; the ability to identify, complete and successfully integrate new acquisitions; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations, including those in response to the COVID-19 pandemic; technological changes and cybersecurity risks; the effects of changes in accounting policies and practices, including from the adoption of the current expected credit loss (CECL) model on January 1, 2020; changes in governmental monetary and fiscal policies; political instability; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; changes in the assumptions used in making the forward-looking statements; and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 26, 2020, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, filed with the SEC on November 5, 2020.
Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, South Alabama and New York City. The Company’s common stock is traded through the NASDAQ Global Select Market under the symbol “HOMB.”
FOR MORE INFORMATION CONTACT:
Donna Townsell
Director of Investor Relations
Home BancShares, Inc.
(501) 328-4625
Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)
| Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||
| (In thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks | $ | 242,173 | $ | 144,197 | $ | 185,047 | $ | 147,200 | $ | 168,914 | ||||||
| Interest-bearing deposits with other banks | 1,021,615 | 899,140 | 1,030,609 | 424,235 | 321,687 | |||||||||||
| Cash and cash equivalents | 1,263,788 | 1,043,337 | 1,215,656 | 571,435 | 490,601 | |||||||||||
| Investment securities - available-for-sale, net of allowance for credit losses | 2,473,781 | 2,361,900 | 2,238,005 | 2,098,000 | 2,083,838 | |||||||||||
| Loans receivable | 11,220,721 | 11,691,470 | 11,955,743 | 11,384,982 | 10,869,710 | |||||||||||
| Allowance for credit losses | (245,473 | ) | (248,224 | ) | (238,340 | ) | (228,923 | ) | (102,122 | ) | ||||||
| Loans receivable, net | 10,975,248 | 11,443,246 | 11,717,403 | 11,156,059 | 10,767,588 | |||||||||||
| Bank premises and equipment, net | 278,614 | 280,364 | 279,498 | 281,795 | 280,103 | |||||||||||
| Foreclosed assets held for sale | 4,420 | 4,322 | 6,292 | 8,204 | 9,143 | |||||||||||
| Cash value of life insurance | 103,519 | 102,989 | 102,443 | 103,120 | 102,562 | |||||||||||
| Accrued interest receivable | 60,528 | 72,599 | 80,274 | 50,295 | 45,086 | |||||||||||
| Deferred tax asset, net | 70,249 | 75,167 | 74,333 | 77,110 | 44,301 | |||||||||||
| Goodwill | 973,025 | 973,025 | 973,025 | 973,025 | 958,408 | |||||||||||
| Core deposit and other intangibles | 30,728 | 32,149 | 33,569 | 35,055 | 36,572 | |||||||||||
| Other assets | 164,904 | 160,660 | 174,908 | 177,634 | 213,845 | |||||||||||
| Total assets | $ | 16,398,804 | $ | 16,549,758 | $ | 16,895,406 | $ | 15,531,732 | $ | 15,032,047 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
| Liabilities | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Demand and non-interest-bearing | $ | 3,266,753 | $ | 3,207,967 | $ | 3,413,727 | $ | 2,425,036 | $ | 2,367,091 | ||||||
| Savings and interest-bearing transaction accounts | 8,212,240 | 8,011,200 | 7,970,979 | 7,149,644 | 6,933,964 | |||||||||||
| Time deposits | 1,246,797 | 1,718,299 | 1,793,230 | 1,940,234 | 1,977,328 | |||||||||||
| Total deposits | 12,725,790 | 12,937,466 | 13,177,936 | 11,514,914 | 11,278,383 | |||||||||||
| Federal funds purchased | - | - | - | - | 5,000 | |||||||||||
| Securities sold under agreements to repurchase | 168,931 | 158,447 | 162,858 | 126,884 | 143,727 | |||||||||||
| FHLB and other borrowed funds | 400,000 | 403,428 | 531,432 | 951,436 | 621,439 | |||||||||||
| Accrued interest payable and other liabilities | 127,999 | 139,485 | 161,095 | 138,479 | 102,410 | |||||||||||
| Subordinated debentures | 370,326 | 370,133 | 369,939 | 369,748 | 369,557 | |||||||||||
| Total liabilities | 13,793,046 | 14,008,959 | 14,403,260 | 13,101,461 | 12,520,516 | |||||||||||
| Stockholders' equity | ||||||||||||||||
| Common stock | 1,651 | 1,652 | 1,652 | 1,651 | 1,664 | |||||||||||
| Capital surplus | 1,520,617 | 1,520,103 | 1,518,631 | 1,516,151 | 1,537,091 | |||||||||||
| Retained earnings | 1,039,370 | 980,699 | 932,856 | 891,498 | 956,555 | |||||||||||
| Accumulated other comprehensive (loss) income | 44,120 | 38,345 | 39,007 | 20,971 | 16,221 | |||||||||||
| Total stockholders' equity | 2,605,758 | 2,540,799 | 2,492,146 | 2,430,271 | 2,511,531 | |||||||||||
| Total liabilities and stockholders' equity | $ | 16,398,804 | $ | 16,549,758 | $ | 16,895,406 | $ | 15,531,732 | $ | 15,032,047 | ||||||
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) | 2020 | 2020 | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
| Interest income | ||||||||||||||||||||||
| Loans | $ | 153,407 | $ | 154,787 | $ | 158,996 | $ | 158,148 | $ | 161,211 | $ | 625,338 | $ | 658,345 | ||||||||
| Investment securities | ||||||||||||||||||||||
| Taxable | 6,900 | 7,227 | 8,693 | 9,776 | 9,707 | 32,596 | 41,406 | |||||||||||||||
| Tax-exempt | 4,979 | 4,367 | 3,698 | 3,114 | 3,260 | 16,158 | 13,015 | |||||||||||||||
| Deposits - other banks | 270 | 252 | 211 | 1,116 | 949 | 1,849 | 5,188 | |||||||||||||||
| Federal funds sold | - | - | - | 21 | 5 | 21 | 34 | |||||||||||||||
| Total interest income | 165,556 | 166,633 | 171,598 | 172,175 | 175,132 | 675,962 | 717,988 | |||||||||||||||
| Interest expense | ||||||||||||||||||||||
| Interest on deposits | 10,596 | 13,200 | 15,116 | 24,198 | 26,823 | 63,110 | 114,104 | |||||||||||||||
| Federal funds purchased | - | - | - | 13 | 33 | 13 | 54 | |||||||||||||||
| FHLB borrowed funds | 1,917 | 2,235 | 2,656 | 2,698 | 2,686 | 9,506 | 17,209 | |||||||||||||||
| Securities sold under agreements to repurchase | 208 | 237 | 260 | 462 | 652 | 1,167 | 2,544 | |||||||||||||||
| Subordinated debentures | 4,810 | 4,823 | 4,899 | 5,079 | 5,155 | 19,611 | 20,860 | |||||||||||||||
| Total interest expense | 17,531 | 20,495 | 22,931 | 32,450 | 35,349 | 93,407 | 154,771 | |||||||||||||||
| Net interest income | 148,025 | 146,138 | 148,667 | 139,725 | 139,783 | 582,555 | 563,217 | |||||||||||||||
| Provision for credit loss - loans | - | 14,000 | 11,441 | 76,672 | - | 102,113 | 1,325 | |||||||||||||||
| Provision for credit loss - acquired loans | - | - | - | 9,309 | - | 9,309 | - | |||||||||||||||
| Provision for credit loss - investment securities | - | - | - | 842 | - | 842 | - | |||||||||||||||
| Total credit loss expense | - | 14,000 | 11,441 | 86,823 | - | 112,264 | 1,325 | |||||||||||||||
| Net interest income after provision for credit losses | 148,025 | 132,138 | 137,226 | 52,902 | 139,783 | 470,291 | 561,892 | |||||||||||||||
| Non-interest income | ||||||||||||||||||||||
| Service charges on deposit accounts | 5,544 | 4,910 | 4,296 | 6,631 | 6,778 | 21,381 | 25,930 | |||||||||||||||
| Other service charges and fees | 8,425 | 8,539 | 7,666 | 6,056 | 10,636 | 30,686 | 34,086 | |||||||||||||||
| Trust fees | 420 | 378 | 397 | 438 | 390 | 1,633 | 1,566 | |||||||||||||||
| Mortgage lending income | 10,071 | 10,177 | 6,196 | 2,621 | 3,801 | 29,065 | 14,303 | |||||||||||||||
| Insurance commissions | 366 | 271 | 533 | 678 | 551 | 1,848 | 2,278 | |||||||||||||||
| Increase in cash value of life insurance | 534 | 548 | 558 | 560 | 562 | 2,200 | 2,752 | |||||||||||||||
| Dividends from FHLB, FRB, FNBB & other | 967 | 3,433 | 230 | 7,842 | 1,952 | 12,472 | 7,707 | |||||||||||||||
| Gain on SBA loans | 304 | - | - | 341 | 686 | 645 | 1,573 | |||||||||||||||
| Gain (loss) on branches, equipment and other assets, net | 217 | (27 | ) | 54 | 82 | 35 | 326 | (3 | ) | |||||||||||||
| Gain on OREO, net | 150 | 470 | 235 | 277 | 159 | 1,132 | 757 | |||||||||||||||
| Loss on securities, net | - | - | - | - | (2 | ) | - | (2 | ) | |||||||||||||
| Fair value adjustment for marketable securities | 4,271 | (1,350 | ) | 919 | (5,818 | ) | - | (1,978 | ) | - | ||||||||||||
| Other income | 2,616 | 2,602 | 3,939 | 3,219 | 2,481 | 12,376 | 8,569 | |||||||||||||||
| Total non-interest income | 33,885 | 29,951 | 25,023 | 22,927 | 28,029 | 111,786 | 99,516 | |||||||||||||||
| Non-interest expense | ||||||||||||||||||||||
| Salaries and employee benefits | 43,022 | 41,511 | 40,088 | 39,329 | 38,446 | 163,950 | 154,177 | |||||||||||||||
| Occupancy and equipment | 9,801 | 9,566 | 10,172 | 8,873 | 8,729 | 38,412 | 35,452 | |||||||||||||||
| Data processing expense | 5,171 | 4,921 | 4,614 | 4,326 | 4,294 | 19,032 | 16,161 | |||||||||||||||
| Other operating expenses | 16,247 | 15,714 | 25,298 | 25,721 | 19,873 | 82,980 | 69,997 | |||||||||||||||
| Total non-interest expense | 74,241 | 71,712 | 80,172 | 78,249 | 71,342 | 304,374 | 275,787 | |||||||||||||||
| Income (loss) before income taxes | 107,669 | 90,377 | 82,077 | (2,420 | ) | 96,470 | 277,703 | 385,621 | ||||||||||||||
| Income tax expense (benefit) | 25,875 | 21,057 | 19,250 | (2,927 | ) | 23,208 | 63,255 | 96,082 | ||||||||||||||
| Net income | $ | 81,794 | $ | 69,320 | $ | 62,827 | $ | 507 | $ | 73,262 | $ | 214,448 | $ | 289,539 | ||||||||
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) | 2020 | 2020 | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||||
| Diluted earnings per common share | $ | 0.50 | $ | 0.42 | $ | 0.38 | $ | - | $ | 0.44 | $ | 1.30 | $ | 1.73 | ||||||||
| Diluted earnings per common share, as adjusted, excluding fair value adjustment for marketable securities, special dividend from equity investment, provision for credit losses, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense and BOLI redemption tax (non-GAAP)(1) | 0.48 | 0.47 | 0.47 | 0.43 | 0.44 | 1.85 | 1.74 | |||||||||||||||
| Basic earnings per common share | 0.50 | 0.42 | 0.38 | - | 0.44 | 1.30 | 1.73 | |||||||||||||||
| Dividends per share - common | 0.1400 | 0.1300 | 0.1300 | 0.1300 | 0.1300 | 0.5300 | 0.5100 | |||||||||||||||
| Book value per common share | 15.78 | 15.38 | 15.09 | 14.72 | 15.10 | 15.78 | 15.10 | |||||||||||||||
| Tangible book value per common share (non-GAAP)(1) | 9.70 | 9.30 | 8.99 | 8.61 | 9.12 | 9.70 | 9.12 | |||||||||||||||
| STOCK INFORMATION | ||||||||||||||||||||||
| Average common shares outstanding | 165,119 | 165,200 | 165,163 | 166,014 | 166,696 | 165,373 | 167,804 | |||||||||||||||
| Average diluted shares outstanding | 165,119 | 165,200 | 165,163 | 166,014 | 166,696 | 165,373 | 167,804 | |||||||||||||||
| End of period common shares outstanding | 165,095 | 165,163 | 165,206 | 165,148 | 166,373 | 165,095 | 166,373 | |||||||||||||||
| ANNUALIZED PERFORMANCE METRICS | ||||||||||||||||||||||
| Return on average assets | 1.97 | % | 1.66 | % | 1.55 | % | 0.01 | % | 1.94 | % | 1.33 | % | 1.93 | % | ||||||||
| Return on average assets excluding fair value adjustment for marketable securities, special dividend from equity investment, provision for credit losses, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense and BOLI redemption tax: (ROA, as adjusted) (non-GAAP)(1) | 1.90 | % | 1.88 | % | 1.93 | % | 1.88 | % | 1.94 | % | 1.90 | % | 1.94 | % | ||||||||
| Return on average assets excluding intangible amortization (non-GAAP)(1) | 2.13 | % | 1.80 | % | 1.68 | % | 0.05 | % | 2.12 | % | 1.45 | % | 2.10 | % | ||||||||
| Return on average common equity | 12.72 | % | 10.97 | % | 10.27 | % | 0.08 | % | 11.71 | % | 8.57 | % | 12.01 | % | ||||||||
| Return on average common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, provision for credit losses, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense and BOLI redemption tax: (ROE, as adjusted) (non-GAAP)(1) | 12.23 | % | 12.39 | % | 12.77 | % | 11.48 | % | 11.68 | % | 12.22 | % | 12.11 | % | ||||||||
| Return on average tangible common equity (non-GAAP)(1) | 20.96 | % | 18.29 | % | 17.40 | % | 0.14 | % | 19.55 | % | 14.31 | % | 20.49 | % | ||||||||
| Return on average tangible common equity excluding intangible amortization (non-GAAP)(1) | 21.22 | % | 18.56 | % | 17.70 | % | 0.44 | % | 19.86 | % | 14.59 | % | 20.83 | % | ||||||||
| Return on average tangible common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, provision for credit losses, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense and BOLI redemption tax: (ROTCE, as adjusted) (non-GAAP)(1) | 20.15 | % | 20.66 | % | 21.63 | % | 19.22 | % | 19.51 | % | 20.41 | % | 20.67 | % | ||||||||
(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 | 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) | 2020 | 2020 | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
| Efficiency ratio | 39.64 | % | 39.56 | % | 44.93 | % | 46.82 | % | 41.26 | % | 42.63 | % | 40.34 | % | ||||||||
| Efficiency ratio, as adjusted (non-GAAP)(1) | 40.67 | % | 40.08 | % | 39.38 | % | 41.37 | % | 41.14 | % | 40.36 | % | 40.55 | % | ||||||||
| Net interest margin - FTE | 4.00 | % | 3.92 | % | 4.11 | % | 4.22 | % | 4.24 | % | 4.02 | % | 4.29 | % | ||||||||
| Net interest margin - FTE, excluding PPP loans (non-GAAP)(1) | 3.97 | % | 3.98 | % | 4.16 | % | 4.22 | % | 4.24 | % | 4.04 | % | 4.29 | % | ||||||||
| Fully taxable equivalent adjustment | $ | 1,778 | $ | 1,576 | $ | 1,434 | $ | 1,227 | $ | 1,322 | $ | 6,015 | $ | 5,255 | ||||||||
| Total revenue (net) | 181,910 | 176,089 | 173,690 | 162,652 | 167,812 | 694,341 | 662,733 | |||||||||||||||
| Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (PPNR) (non-GAAP)(1) | 107,669 | 104,377 | 102,732 | 92,178 | 96,470 | 406,956 | 386,946 | |||||||||||||||
| Pre-tax net income to total revenue (net) | 59.19 | % | 51.32 | % | 47.25 | % | -1.49 | % | 57.49 | % | 40.00 | % | 58.19 | % | ||||||||
| P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) | 59.19 | % | 59.28 | % | 59.15 | % | 56.67 | % | 57.49 | % | 58.61 | % | 58.39 | % | ||||||||
| Net income, excluding provision for credit losses and unfunded commitment expense | 81,794 | 79,661 | 78,084 | 70,382 | 73,262 | 309,921 | 290,522 | |||||||||||||||
| Return on average assets (pre-tax net income, excluding provision for credit losses and unfunded commitment expense) (non-GAAP)(1) | 2.60 | % | 2.50 | % | 2.53 | % | 2.45 | % | 2.56 | % | 2.52 | % | 2.57 | % | ||||||||
| Return on average assets, excluding provision for credit losses and unfunded commitment expense (non-GAAP)(1) | 1.97 | % | 1.91 | % | 1.92 | % | 1.87 | % | 1.94 | % | 1.92 | % | 1.93 | % | ||||||||
| Total purchase accounting accretion | 5,736 | 6,957 | 7,036 | 7,647 | 9,133 | 27,376 | 35,890 | |||||||||||||||
| Average purchase accounting loan discounts | 49,563 | 55,835 | 62,822 | 69,365 | 91,869 | 59,406 | 114,521 | |||||||||||||||
| OTHER OPERATING EXPENSES | ||||||||||||||||||||||
| Advertising | $ | 1,076 | $ | 902 | $ | 795 | $ | 1,226 | $ | 1,340 | $ | 3,999 | $ | 4,687 | ||||||||
| Merger and acquisition expenses | - | - | - | 711 | - | 711 | - | |||||||||||||||
| Amortization of intangibles | 1,421 | 1,420 | 1,486 | 1,517 | 1,565 | 5,844 | 6,324 | |||||||||||||||
| Electronic banking expense | 2,282 | 2,426 | 2,054 | 1,715 | 1,870 | 8,477 | 7,525 | |||||||||||||||
| Directors' fees | 359 | 429 | 412 | 424 | 396 | 1,624 | 1,602 | |||||||||||||||
| Due from bank service charges | 254 | 259 | 239 | 223 | 289 | 975 | 1,081 | |||||||||||||||
| FDIC and state assessment | 1,493 | 1,607 | 1,846 | 1,548 | 1,635 | 6,494 | 4,468 | |||||||||||||||
| Hurricane expense | - | - | - | - | - | - | 897 | |||||||||||||||
| Insurance | 795 | 766 | 711 | 746 | 790 | 3,018 | 2,846 | |||||||||||||||
| Legal and accounting | 790 | 1,235 | 1,278 | 919 | 1,633 | 4,222 | 5,017 | |||||||||||||||
| Other professional fees | 1,528 | 1,661 | 1,735 | 3,226 | 3,189 | 8,150 | 10,213 | |||||||||||||||
| Operating supplies | 440 | 460 | 553 | 535 | 469 | 1,988 | 2,021 | |||||||||||||||
| Postage | 315 | 328 | 313 | 327 | 327 | 1,283 | 1,266 | |||||||||||||||
| Telephone | 347 | 321 | 310 | 324 | 312 | 1,302 | 1,210 | |||||||||||||||
| Unfunded commitments | - | - | 9,214 | 7,775 | - | 16,989 | - | |||||||||||||||
| Other expense | 5,147 | 3,900 | 4,352 | 4,505 | 6,058 | 17,904 | 20,840 | |||||||||||||||
| Total other operating expenses | $ | 16,247 | $ | 15,714 | $ | 25,298 | $ | 25,721 | $ | 19,873 | $ | 82,980 | $ | 69,997 | ||||||||
(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, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||
| (Dollars in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||||||
| BALANCE SHEET RATIOS | ||||||||||||||||
| Total loans to total deposits | 88.17 | % | 90.37 | % | 90.73 | % | 98.87 | % | 96.38 | % | ||||||
| Common equity to assets | 15.89 | % | 15.35 | % | 14.75 | % | 15.65 | % | 16.71 | % | ||||||
| Tangible common equity to tangible assets (non-GAAP)(1) | 10.41 | % | 9.88 | % | 9.35 | % | 9.79 | % | 10.80 | % | ||||||
| LOANS RECEIVABLE | ||||||||||||||||
| Real estate | ||||||||||||||||
| Commercial real estate loans | ||||||||||||||||
| Non-farm/non-residential | $ | 4,429,060 | $ | 4,342,141 | $ | 4,325,795 | $ | 4,357,007 | $ | 4,412,769 | ||||||
| Construction/land development | 1,562,298 | 1,748,928 | 1,818,151 | 1,892,394 | 1,776,689 | |||||||||||
| Agricultural | 114,431 | 89,476 | 105,554 | 89,630 | 88,400 | |||||||||||
| Residential real estate loans | ||||||||||||||||
| Residential 1-4 family | 1,536,257 | 1,665,628 | 1,730,716 | 1,775,610 | 1,819,221 | |||||||||||
| Multifamily residential | 536,538 | 491,380 | 482,635 | 411,960 | 488,278 | |||||||||||
| Total real estate | 8,178,584 | 8,337,553 | 8,462,851 | 8,526,601 | 8,585,357 | |||||||||||
| Consumer | 864,690 | 883,568 | 851,344 | 852,174 | 511,909 | |||||||||||
| Commercial and industrial | 1,896,442 | 2,161,818 | 2,228,816 | 1,759,752 | 1,528,003 | |||||||||||
| Agricultural | 66,869 | 85,365 | 80,023 | 64,582 | 63,644 | |||||||||||
| Other | 214,136 | 223,166 | 332,709 | 181,873 | 180,797 | |||||||||||
| Loans receivable | $ | 11,220,721 | $ | 11,691,470 | $ | 11,955,743 | $ | 11,384,982 | $ | 10,869,710 | ||||||
| Paycheck Protection Program (PPP) loans (included in total loans receivable) | 691,747 | 848,745 | 848,628 | - | - | |||||||||||
| ALLOWANCE FOR CREDIT LOSSES | ||||||||||||||||
| Balance, beginning of period | $ | 248,224 | $ | 238,340 | $ | 228,923 | $ | 102,122 | $ | 104,304 | ||||||
| Impact of adopting ASC 326 | - | - | - | 43,988 | - | |||||||||||
| Allowance for credit losses on acquired loans | - | - | - | 357 | - | |||||||||||
| Loans charged off | 3,040 | 4,599 | 2,582 | 4,265 | 2,631 | |||||||||||
| Recoveries of loans previously charged off | 289 | 483 | 558 | 740 | 449 | |||||||||||
| Net loans (recovered)/charged off | 2,751 | 4,116 | 2,024 | 3,525 | 2,182 | |||||||||||
| Provision for credit loss - loans | - | 14,000 | 11,441 | 76,672 | - | |||||||||||
| Provision for credit loss - acquired loans | - | - | - | 9,309 | - | |||||||||||
| Total credit loss expense excluding provision for credit loss - investment securities | - | 14,000 | 11,441 | 85,981 | - | |||||||||||
| Balance, end of period | $ | 245,473 | $ | 248,224 | $ | 238,340 | $ | 228,923 | $ | 102,122 | ||||||
| Net (recoveries) charge-offs to average total loans | 0.10 | % | 0.14 | % | 0.07 | % | 0.13 | % | 0.08 | % | ||||||
| Allowance for credit losses to total loans | 2.19 | % | 2.12 | % | 1.99 | % | 2.01 | % | 0.94 | % | ||||||
| Allowance for credit losses to total loans, excluding PPP loans | 2.33 | % | 2.29 | % | 2.15 | % | 2.01 | % | 0.94 | % | ||||||
| NON-PERFORMING ASSETS | ||||||||||||||||
| Non-performing loans | ||||||||||||||||
| Non-accrual loans | $ | 64,528 | $ | 65,148 | $ | 52,074 | $ | 52,131 | $ | 47,607 | ||||||
| Loans past due 90 days or more | 9,610 | 8,635 | 7,824 | 7,760 | 7,238 | |||||||||||
| Total non-performing loans | 74,138 | 73,783 | 59,898 | 59,891 | 54,845 | |||||||||||
| Other non-performing assets | ||||||||||||||||
| Foreclosed assets held for sale, net | 4,420 | 4,322 | 6,292 | 8,204 | 9,143 | |||||||||||
| Other non-performing assets | - | 247 | 247 | 447 | 447 | |||||||||||
| Total other non-performing assets | 4,420 | 4,569 | 6,539 | 8,651 | 9,590 | |||||||||||
| Total non-performing assets | $ | 78,558 | $ | 78,352 | $ | 66,437 | $ | 68,542 | $ | 64,435 | ||||||
| Allowance for credit losses for loans to non-performing loans | 331.10 | % | 336.42 | % | 397.91 | % | 382.23 | % | 186.20 | % | ||||||
| Non-performing loans to total loans | 0.66 | % | 0.63 | % | 0.50 | % | 0.53 | % | 0.50 | % | ||||||
| Non-performing assets to total assets | 0.48 | % | 0.47 | % | 0.39 | % | 0.44 | % | 0.43 | % | ||||||
(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, 2020 | September 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 | $ | 1,029,047 | $ | 270 | 0.10 | % | $ | 926,754 | $ | 252 | 0.11 | % | ||||||
| Federal funds sold | 5 | - | 0.00 | % | 124 | - | 0.00 | % | ||||||||||
| Investment securities - taxable | 1,615,214 | 6,900 | 1.70 | % | 1,618,058 | 7,227 | 1.78 | % | ||||||||||
| Investment securities - non-taxable - FTE | 798,402 | 6,550 | 3.26 | % | 672,067 | 5,731 | 3.39 | % | ||||||||||
| Loans receivable - FTE | 11,457,713 | 153,614 | 5.33 | % | 11,758,143 | 154,999 | 5.24 | % | ||||||||||
| Total interest-earning assets | 14,900,381 | 167,334 | 4.47 | % | 14,975,146 | 168,209 | 4.47 | % | ||||||||||
| Non-earning assets | 1,592,685 | 1,619,349 | ||||||||||||||||
| Total assets | $ | 16,493,066 | $ | 16,594,495 | ||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Liabilities | ||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 8,109,111 | $ | 5,813 | 0.29 | % | $ | 7,937,412 | $ | 6,651 | 0.33 | % | ||||||
| Time deposits | 1,483,049 | 4,783 | 1.28 | % | 1,745,279 | 6,549 | 1.49 | % | ||||||||||
| Total interest-bearing deposits | 9,592,160 | 10,596 | 0.44 | % | 9,682,691 | 13,200 | 0.54 | % | ||||||||||
| Federal funds purchased | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||
| Securities sold under agreement to repurchase | 156,198 | 208 | 0.53 | % | 157,172 | 237 | 0.60 | % | ||||||||||
| FHLB borrowed funds | 400,001 | 1,917 | 1.91 | % | 464,799 | 2,235 | 1.91 | % | ||||||||||
| Subordinated debentures | 370,232 | 4,810 | 5.17 | % | 370,038 | 4,823 | 5.19 | % | ||||||||||
| Total interest-bearing liabilities | 10,518,591 | 17,531 | 0.66 | % | 10,674,700 | 20,495 | 0.76 | % | ||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||
| Non-interest bearing deposits | 3,279,708 | 3,259,501 | ||||||||||||||||
| Other liabilities | 137,516 | 146,502 | ||||||||||||||||
| Total liabilities | 13,935,815 | 14,080,703 | ||||||||||||||||
| Shareholders' equity | 2,557,251 | 2,513,792 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 16,493,066 | $ | 16,594,495 | ||||||||||||||
| Net interest spread | 3.81 | % | 3.71 | % | ||||||||||||||
| Net interest income and margin - FTE | $ | 149,803 | 4.00 | % | $ | 147,714 | 3.92 | % | ||||||||||
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
| Year Ended | ||||||||||||||||||
| December 31, 2020 | December 31, 2019 | |||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||
| ASSETS | ||||||||||||||||||
| Earning assets | ||||||||||||||||||
| Interest-bearing balances due from banks | $ | 921,189 | $ | 1,849 | 0.20 | % | $ | 254,548 | $ | 5,188 | 2.04 | % | ||||||
| Federal funds sold | 1,330 | 21 | 1.58 | % | 1,421 | 34 | 2.39 | % | ||||||||||
| Investment securities - taxable | 1,653,159 | 32,596 | 1.97 | % | 1,663,512 | 41,406 | 2.49 | % | ||||||||||
| Investment securities - non-taxable - FTE | 577,444 | 21,263 | 3.68 | % | 379,232 | 17,026 | 4.49 | % | ||||||||||
| Loans receivable - FTE | 11,504,123 | 626,249 | 5.44 | % | 10,961,599 | 659,589 | 6.02 | % | ||||||||||
| Total interest-earning assets | 14,657,245 | 681,978 | 4.65 | % | 13,260,312 | 723,243 | 5.45 | % | ||||||||||
| Non-earning assets | 1,480,049 | 1,768,188 | ||||||||||||||||
| Total assets | $ | 16,137,294 | $ | 15,028,500 | ||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Liabilities | ||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 7,686,621 | $ | 36,085 | 0.47 | % | $ | 6,674,493 | $ | 77,194 | 1.16 | % | ||||||
| Time deposits | 1,756,138 | 27,026 | 1.54 | % | 1,972,040 | 36,910 | 1.87 | % | ||||||||||
| Total interest-bearing deposits | 9,442,759 | 63,111 | 0.67 | % | 8,646,533 | 114,104 | 1.32 | % | ||||||||||
| Federal funds purchased | 1,557 | 13 | 0.83 | % | 2,895 | 54 | 1.87 | % | ||||||||||
| Securities sold under agreement to repurchase | 151,573 | 1,167 | 0.77 | % | 149,665 | 2,544 | 1.70 | % | ||||||||||
| FHLB borrowed funds | 534,608 | 9,506 | 1.78 | % | 848,969 | 17,209 | 2.03 | % | ||||||||||
| Subordinated debentures | 369,943 | 19,611 | 5.30 | % | 369,175 | 20,860 | 5.65 | % | ||||||||||
| Total interest-bearing liabilities | 10,500,440 | 93,408 | 0.89 | % | 10,017,237 | 154,771 | 1.55 | % | ||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||
| Non-interest bearing deposits | 2,998,560 | 2,489,254 | ||||||||||||||||
| Other liabilities | 135,094 | 111,156 | ||||||||||||||||
| Total liabilities | 13,634,094 | 12,617,647 | ||||||||||||||||
| Shareholders' equity | 2,503,200 | 2,410,853 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 16,137,294 | $ | 15,028,500 | ||||||||||||||
| Net interest spread | 3.76 | % | 3.90 | % | ||||||||||||||
| Net interest income and margin - FTE | $ | 588,570 | 4.02 | % | $ | 568,472 | 4.29 | % | ||||||||||
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) | 2020 | 2020 | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
| EARNINGS, AS ADJUSTED | ||||||||||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 81,794 | $ | 69,320 | $ | 62,827 | $ | 507 | $ | 73,262 | $ | 214,448 | $ | 289,539 | ||||||||
| Pre-tax adjustments | ||||||||||||||||||||||
| Fair value adjustment for marketable securities | (4,271 | ) | 1,350 | (919 | ) | 5,818 | - | 1,978 | - | |||||||||||||
| Special dividend from equity investment | - | (3,181 | ) | - | (7,004 | ) | (861 | ) | (10,185 | ) | (2,995 | ) | ||||||||||
| Provision for credit losses | - | 14,000 | 11,441 | 86,823 | - | 112,264 | 1,325 | |||||||||||||||
| Branch write-off expense | - | - | 981 | - | - | 981 | - | |||||||||||||||
| Unfunded commitment expense | - | - | 9,214 | 7,775 | - | 16,989 | - | |||||||||||||||
| Outsourced special project expense | - | - | - | 1,092 | 631 | 1,092 | 1,531 | |||||||||||||||
| Merger and acquisition expenses | - | - | - | 711 | - | 711 | - | |||||||||||||||
| FDIC Small Bank Assessment Credit | - | - | - | - | - | - | (2,291 | ) | ||||||||||||||
| Hurricane expenses | - | - | - | - | - | - | 897 | |||||||||||||||
| Total pre-tax adjustments | (4,271 | ) | 12,169 | 20,717 | 95,215 | (230 | ) | 123,830 | (1,533 | ) | ||||||||||||
| Tax-effect of adjustments | (1,116 | ) | 3,181 | 5,414 | 24,884 | (59 | ) | 32,363 | (396 | ) | ||||||||||||
| Adjustments after-tax | (3,155 | ) | 8,988 | 15,303 | 70,331 | (171 | ) | 91,467 | (1,137 | ) | ||||||||||||
| BOLI redemption tax | - | - | - | - | - | - | 3,667 | |||||||||||||||
| Total adjustments after-tax (B) | (3,155 | ) | 8,988 | 15,303 | 70,331 | (171 | ) | 91,467 | 2,530 | |||||||||||||
| Earnings, as adjusted (C) | $ | 78,639 | $ | 78,308 | $ | 78,130 | $ | 70,838 | $ | 73,091 | $ | 305,915 | $ | 292,069 | ||||||||
| Average diluted shares outstanding (D) | 165,119 | 165,200 | 165,163 | 166,014 | 166,696 | 165,373 | 167,804 | |||||||||||||||
| GAAP diluted earnings per share: (A/D) | $ | 0.50 | $ | 0.42 | $ | 0.38 | $ | - | $ | 0.44 | $ | 1.30 | $ | 1.73 | ||||||||
| Adjustments after-tax: (B/D) | (0.02 | ) | 0.05 | 0.09 | 0.43 | - | 0.55 | 0.01 | ||||||||||||||
| Diluted earnings per common share, as adjusted, excluding fair value adjustment for marketable securities, special dividend from equity investment, provision for credit losses, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense and BOLI redemption tax: (C/D) | $ | 0.48 | $ | 0.47 | $ | 0.47 | $ | 0.43 | $ | 0.44 | $ | 1.85 | $ | 1.74 | ||||||||
| ANNUALIZED RETURN ON AVERAGE ASSETS | ||||||||||||||||||||||
| Return on average assets: (A/G) | 1.97 | % | 1.66 | % | 1.55 | % | 0.01 | % | 1.94 | % | 1.33 | % | 1.93 | % | ||||||||
| Return on average assets excluding fair value adjustment for marketable securities, special dividend from equity investment, provision for credit losses, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense and BOLI redemption tax: (ROA, as adjusted) ((A+F)/G) | 1.90 | % | 1.88 | % | 1.93 | % | 1.88 | % | 1.94 | % | 1.90 | % | 1.94 | % | ||||||||
| Return on average assets (pre-tax net income, excluding provision for credit losses and unfunded commitment expense): (B/G) | 2.60 | % | 2.50 | % | 2.53 | % | 2.45 | % | 2.56 | % | 2.52 | % | 2.57 | % | ||||||||
| Return on average assets, excluding provision for credit losses and unfunded commitment expense: (C/G) | 1.97 | % | 1.91 | % | 1.92 | % | 1.87 | % | 1.94 | % | 1.92 | % | 1.93 | % | ||||||||
| Return on average assets excluding intangible amortization: ((A+E)/(G-H)) | 2.13 | % | 1.80 | % | 1.68 | % | 0.05 | % | 2.12 | % | 1.45 | % | 2.10 | % | ||||||||
| GAAP net income available to common shareholders (A) | $ | 81,794 | $ | 69,320 | $ | 62,827 | $ | 507 | $ | 73,262 | $ | 214,448 | $ | 289,539 | ||||||||
| Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (B) | $ | 107,669 | $ | 104,377 | $ | 102,732 | $ | 92,178 | $ | 96,470 | $ | 406,956 | $ | 386,946 | ||||||||
| Net income, excluding provision for credit losses and unfunded commitment expense (C) | $ | 81,794 | $ | 79,661 | $ | 78,084 | $ | 70,382 | $ | 73,262 | $ | 309,921 | $ | 290,522 | ||||||||
| Amortization of intangibles (D) | 1,421 | 1,420 | 1,486 | 1,517 | 1,565 | 5,844 | 6,324 | |||||||||||||||
| Amortization of intangibles after-tax (E) | 1,049 | 1,049 | 1,098 | 1,121 | 1,161 | 4,317 | 4,691 | |||||||||||||||
| Adjustments after-tax (F) | (3,155 | ) | 8,988 | 15,303 | 70,331 | (171 | ) | 91,467 | 2,530 | |||||||||||||
| Average assets (G) | 16,493,066 | 16,594,495 | 16,319,206 | 15,133,475 | 14,944,368 | 16,137,294 | 15,028,500 | |||||||||||||||
| Average goodwill, core deposits & other intangible assets (H) | 1,004,432 | 1,005,864 | 1,007,307 | 999,004 | 995,721 | 1,004,157 | 998,090 | |||||||||||||||
Home BancShares, Inc.
Non-GAAP Reconciliations
(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) | 2020 | 2020 | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
| ANNUALIZED RETURN ON AVERAGE COMMON EQUITY | |||||||||||||||||||||||
| Return on average common equity: (A/D) | 12.72 | % | 10.97 | % | 10.27 | % | 0.08 | % | 11.71 | % | 8.57 | % | 12.01 | % | |||||||||
| Return on average common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, provision for credit losses, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense and BOLI redemption tax: (ROE, as adjusted) ((A+C)/D) | 12.23 | % | 12.39 | % | 12.77 | % | 11.48 | % | 11.68 | % | 12.22 | % | 12.11 | % | |||||||||
| Return on average tangible common equity: (A/(D-E)) | 20.96 | % | 18.29 | % | 17.40 | % | 0.14 | % | 19.55 | % | 14.31 | % | 20.49 | % | |||||||||
| Return on average tangible common equity excluding intangible amortization: (B/(D-E)) | 21.22 | % | 18.56 | % | 17.70 | % | 0.44 | % | 19.86 | % | 14.59 | % | 20.83 | % | |||||||||
| Return on average tangible common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, provision for credit losses, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense and BOLI redemption tax: (ROTCE, as adjusted) ((A+C)/(D-E)) | 20.15 | % | 20.66 | % | 21.63 | % | 19.22 | % | 19.51 | % | 20.41 | % | 20.67 | % | |||||||||
| GAAP net income available to common shareholders (A) | $ | 81,794 | $ | 69,320 | $ | 62,827 | $ | 507 | $ | 73,262 | $ | 214,448 | $ | 289,539 | |||||||||
| Earnings excluding intangible amortization (B) | 82,843 | 70,369 | 63,925 | 1,628 | 74,423 | 218,765 | 294,230 | ||||||||||||||||
| Adjustments after-tax (C) | (3,155 | ) | 8,988 | 15,303 | 70,331 | (171 | ) | 91,467 | 2,530 | ||||||||||||||
| Average common equity (D) | 2,557,251 | 2,513,792 | 2,459,941 | 2,481,104 | 2,482,406 | 2,503,200 | 2,410,853 | ||||||||||||||||
| Average goodwill, core deposits & other intangible assets (E) | 1,004,432 | 1,005,864 | 1,007,307 | 999,004 | 995,721 | 1,004,157 | 998,090 | ||||||||||||||||
| EFFICIENCY RATIO | |||||||||||||||||||||||
| Efficiency ratio: ((C-E)/(A+B+D)) | 39.64 | % | 39.56 | % | 44.93 | % | 46.82 | % | 41.26 | % | 42.63 | % | 40.34 | % | |||||||||
| Efficiency ratio, as adjusted: ((C-E-G)/(A+B+D-F)) | 40.67 | % | 40.08 | % | 39.38 | % | 41.37 | % | 41.14 | % | 40.36 | % | 40.55 | % | |||||||||
| Net interest income (A) | $ | 148,025 | $ | 146,138 | $ | 148,667 | $ | 139,725 | $ | 139,783 | $ | 582,555 | $ | 563,217 | |||||||||
| Non-interest income (B) | 33,885 | 29,951 | 25,023 | 22,927 | 28,029 | 111,786 | 99,516 | ||||||||||||||||
| Non-interest expense (C) | 74,241 | 71,712 | 80,172 | 78,249 | 71,342 | 304,374 | 275,787 | ||||||||||||||||
| Fully taxable equivalent adjustment (D) | 1,778 | 1,576 | 1,434 | 1,227 | 1,322 | 6,015 | 5,255 | ||||||||||||||||
| Amortization of intangibles (E) | 1,421 | 1,420 | 1,486 | 1,517 | 1,565 | 5,844 | 6,324 | ||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||||
| Fair value adjustment for marketable securities | $ | 4,271 | $ | (1,350 | ) | $ | 919 | $ | (5,818 | ) | $ | - | $ | (1,978 | ) | $ | - | ||||||
| Gain (loss) on OREO | 150 | 470 | 235 | 277 | 159 | 1,132 | 757 | ||||||||||||||||
| Gain (loss) on branches, equipment and other assets, net | 217 | (27 | ) | 54 | 82 | 35 | 326 | (3 | ) | ||||||||||||||
| Special dividend from equity investment | - | 3,181 | - | 7,004 | 861 | 10,185 | 2,995 | ||||||||||||||||
| Gain (loss) on securities | - | - | - | - | (2 | ) | - | (2 | ) | ||||||||||||||
| Total non-interest income adjustments (F) | $ | 4,638 | $ | 2,274 | $ | 1,208 | $ | 1,545 | $ | 1,053 | $ | 9,665 | $ | 3,747 | |||||||||
| Non-interest expense: | |||||||||||||||||||||||
| Branch write-off expense | $ | - | $ | - | $ | 981 | $ | - | $ | - | $ | 981 | $ | - | |||||||||
| Unfunded commitment expense | - | - | 9,214 | 7,775 | - | 16,989 | - | ||||||||||||||||
| FDIC Small Bank Assessment Credit | - | - | - | - | - | - | (2,291 | ) | |||||||||||||||
| Merger Expenses | - | - | - | 711 | - | 711 | - | ||||||||||||||||
| Hurricane damage expense | - | - | - | - | - | - | 897 | ||||||||||||||||
| Outsourced special project expense | - | - | - | 1,092 | 631 | 1,092 | 1,531 | ||||||||||||||||
| Total non-interest expense adjustments (G) | $ | - | $ | - | $ | 10,195 | $ | 9,578 | $ | 631 | $ | 19,773 | $ | 137 | |||||||||
| ANNUALIZED NET INTEREST MARGIN | |||||||||||||||||||||||
| Net interest margin: A/C | 4.00 | % | 3.92 | % | 4.11 | % | 4.22 | % | 4.24 | % | 4.02 | % | 4.29 | % | |||||||||
| Net interest margin, excluding PPP loans (non-GAAP): B/D | 3.97 | % | 3.98 | % | 4.16 | % | 4.22 | % | 4.24 | % | 4.04 | % | 4.29 | % | |||||||||
| Net interest income - FTE (A) | $ | 149,803 | $ | 147,714 | $ | 150,101 | $ | 140,952 | $ | 141,105 | $ | 588,570 | $ | 568,472 | |||||||||
| PPP loan interest & discount accretion income | 8,841 | 5,943 | 4,450 | - | - | 19,234 | - | ||||||||||||||||
| Net interest income - FTE, excluding PPP loans (non-GAAP) (B) | $ | 140,962 | $ | 141,771 | $ | 145,651 | $ | 140,952 | $ | 141,105 | $ | 569,336 | $ | 568,472 | |||||||||
| Average interest-earning assets (C) | $ | 14,900,381 | $ | 14,975,146 | $ | 14,678,465 | $ | 13,428,700 | $ | 13,188,508 | $ | 14,657,245 | $ | 13,260,312 | |||||||||
| Average PPP loans | 775,861 | 821,977 | 585,946 | - | - | 547,328 | - | ||||||||||||||||
| Average interest-earning assets, excluding PPP loans (non-GAAP) (D) | $ | 14,124,520 | $ | 14,153,169 | $ | 14,092,519 | $ | 13,428,700 | $ | 13,188,508 | $ | 14,109,917 | $ | 13,260,312 | |||||||||
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) | 2020 | 2020 | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
| Pre-tax net income | $ | 107,669 | $ | 90,377 | $ | 82,077 | $ | (2,420 | ) | $ | 96,470 | $ | 277,703 | $ | 385,621 | |||||||
| Provision for credit losses | - | 14,000 | 11,441 | 86,823 | - | 112,264 | 1,325 | |||||||||||||||
| Unfunded commitment expense | - | - | 9,214 | 7,775 | - | 16,989 | - | |||||||||||||||
| Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (PPNR) (A) | $ | 107,669 | $ | 104,377 | $ | 102,732 | $ | 92,178 | $ | 96,470 | $ | 406,956 | $ | 386,946 | ||||||||
| Total revenue (net) (B) | 181,910 | 176,089 | 173,690 | 162,652 | 167,812 | 694,341 | 662,733 | |||||||||||||||
| Pre-tax net income to total revenue (net) | 59.19 | % | 51.32 | % | 47.25 | % | -1.49 | % | 57.49 | % | 40.00 | % | 58.19 | % | ||||||||
| P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) | 59.19 | % | 59.28 | % | 59.15 | % | 56.67 | % | 57.49 | % | 58.61 | % | 58.39 | % | ||||||||
| Quarter Ended | ||||||||||||||||||||||
| Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||||
| (Dollars in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||||||||||||
| TANGIBLE BOOK VALUE PER COMMON SHARE | ||||||||||||||||||||||
| Book value per common share: (A/B) | $ | 15.78 | $ | 15.38 | $ | 15.09 | $ | 14.72 | $ | 15.10 | ||||||||||||
| Tangible book value per common share: ((A-C-D)/B) | 9.70 | 9.30 | 8.99 | 8.61 | 9.12 | |||||||||||||||||
| Total stockholders' equity (A) | $ | 2,605,758 | $ | 2,540,799 | $ | 2,492,146 | $ | 2,430,271 | $ | 2,511,531 | ||||||||||||
| End of period common shares outstanding (B) | 165,095 | 165,163 | 165,206 | 165,148 | 166,373 | |||||||||||||||||
| Goodwill (C) | 973,025 | 973,025 | 973,025 | 973,025 | 958,408 | |||||||||||||||||
| Core deposit and other intangibles (D) | 30,728 | 32,149 | 33,569 | 35,055 | 36,572 | |||||||||||||||||
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | ||||||||||||||||||||||
| Equity to assets: (B/A) | 15.89 | % | 15.35 | % | 14.75 | % | 15.65 | % | 16.71 | % | ||||||||||||
| Tangible common equity to tangible assets: ((B-C-D)/(A-C-D)) | 10.41 | % | 9.88 | % | 9.35 | % | 9.79 | % | 10.80 | % | ||||||||||||
| Total assets (A) | $ | 16,398,804 | $ | 16,549,758 | $ | 16,895,406 | $ | 15,531,732 | $ | 15,032,047 | ||||||||||||
| Total stockholders' equity (B) | 2,605,758 | 2,540,799 | 2,492,146 | 2,430,271 | 2,511,531 | |||||||||||||||||
| Goodwill (C) | 973,025 | 973,025 | 973,025 | 973,025 | 958,408 | |||||||||||||||||
| Core deposit and other intangibles (D) | 30,728 | 32,149 | 33,569 | 35,055 | 36,572 | |||||||||||||||||