Home BancShares Inc.
01/20/2022 | Press release | Distributed by Public on 01/20/2022 07:17
Home BancShares Ends 2021 with Record Annual Profits and a Fortress Balance Sheet - Form 8-K
Home BancShares Ends 2021 with Record Annual Profits and a Fortress Balance Sheet
Conway, AR - Home BancShares, Inc. (NYSE: HOMB) ("Home" or the "Company"), parent company of Centennial Bank, released quarterly earnings today.
Highlights of the Fourth Quarter of 2021:
| Metric | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 |
| Net Income |
$73.4 million
|
$75.0 million
|
$79.1 million
|
$91.6 million
|
$81.8 million
|
| Total Revenue (net) |
$171.0 million
|
$173.8 million
|
$172.4 million
|
$193.4 million
|
$181.9 million
|
| Income before income taxes |
$93.9 million
|
$98.2 million
|
$104.1 million
|
$120.5 million
|
$107.7 million
|
|
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)
|
$93.9 million
|
$98.2 million
|
$99.4 million
|
$120.5 million
|
$107.7 million
|
| Pre-tax net income to total revenue (net) | 54.94% | 56.50% | 60.42% | 62.32% | 59.19% |
|
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)
|
54.94% | 56.50% | 57.66% | 62.32% | 59.19% |
| ROA | 1.62% | 1.68% | 1.81% | 2.22% | 1.97% |
| NIM | 3.42% | 3.60% | 3.61% | 4.02% | 4.00% |
|
NIM, excluding PPP loans (non-GAAP)(1)
|
3.32% | 3.43% | 3.54% | 3.86% | 3.97% |
| Purchase Accounting Accretion |
$4.0 million
|
$4.9 million
|
$5.8 million
|
$5.5 million
|
$5.7 million
|
| ROE | 10.63% | 10.97% | 11.92% | 14.15% | 12.72% |
|
ROTCE (non-GAAP)(1)
|
16.73% | 17.39% | 19.12% | 22.90% | 20.96% |
| Diluted Earnings Per Share | $0.45 | $0.46 | $0.48 | $0.55 | $0.50 |
| Non-Performing Assets to Total Assets | 0.29% | 0.29% | 0.35% | 0.38% | 0.48% |
| Common Equity Tier 1 Capital | 15.4% | 15.2% | 15.0% | 14.3% | 13.4% |
| Leverage | 11.1% | 11.0% | 10.9% | 11.1% | 10.8% |
| Tier 1 Capital | 16.0% | 15.8% | 15.6% | 14.9% | 14.0% |
| Total Risk-Based Capital | 19.8% | 19.6% | 19.5% | 18.8% | 17.8% |
| Allowance for Credit Losses to Total Loans | 2.41% | 2.41% | 2.36% | 2.25% | 2.19% |
|
Allowance for Credit Losses to Total Loans, excluding PPP loans (non-GAAP)(1)
|
2.43% | 2.47% | 2.47% | 2.40% | 2.33% |
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
"The year 2021 delivered numerous exceptional results for HOMB including several record setting metrics. As we end 2021 with record profits and peer leading asset quality, combined with our recent sub-debt note issuance, HOMB is starting out 2022 with a fortress balance sheet and poised to pivot in any direction where opportunities arise," said John Allison, Chairman.
"A strong fourth quarter assisted HOMB in reaching records for both net income and earnings per share for the year ended December 31, 2021. The fourth quarter also saw continued strong asset quality as the Company determined an additional provision for credit loss was not necessary. Another year where our solid offense and defense have played well for us," said Tracy French, Centennial Bank President and Chief Executive Officer.
Operating Highlights
Net income for the three-month period ended December 31, 2021 was $73.4 million, or $0.45 earnings per share. Net income for the year ended December 31, 2021 was $319.0 million, or $1.94 earnings per share. Net income and earnings per share for the year ended December 31, 2021 were both records for the Company.
During the fourth quarter of 2021, the Company did not record any credit loss expense. The Company determined that an additional provision for credit losses on loans was not necessary as the current level of the allowance for credit losses was considered adequate as of December 31, 2021. In addition, the Company determined that the current level of the unfunded commitment reserve was adequate and no additional provision for unfunded commitments was necessary.
Our net interest margin was 3.42% for the three-month period ended December 31, 2021 compared to 3.60% for the three-month period ended September 30, 2021. The yield on loans was 5.48% and 5.64% for the three months ended December 31, 2021 and September 30, 2021, respectively, as average loans decreased from $10.04 billion to $9.91 billion. Additionally, the rate on interest bearing deposits decreased to 0.20% as of December 31, 2021 from 0.23% as of September 30, 2021, with average balances of $10.00 billion and $9.86 billion, respectively.
As of December 31, 2021, we had $112.8 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, 2021 was 3.32%(1). The PPP loans were accretive to the net interest margin by 10 basis points for the three-month period ended December 31, 2021 compared to 17 basis points for the three-month period ended September 30, 2021. This was primarily due to approximately $128.7 million of the Company's PPP loans being forgiven during the fourth quarter of 2021 as well as the acceleration of deferred fees for the loans that were forgiven. The deferred fee income decreased from $9.3 million to $5.4 million for the three-month periods ended September 30, 2021 and December 31, 2021, respectively.
The effects of the COVID-19 pandemic continued to create a significant amount of excess liquidity in the market. As a result of this excess liquidity, we had an increase of $347.1 million of average interest-bearing cash balances in the fourth quarter of 2021 compared to the third quarter of 2021.This excess liquidity diluted the net interest margin by 7 basis points for the three-month period ended December 31, 2021.
During the fourth quarter of 2021, there was $1.2 million of event interest income compared to event interest income of $3.5 million for the third quarter of 2021. The reduction in event income led to a 6 basis point decrease to the net interest margin.
Purchase accounting accretion on acquired loans was $4.0 million and $4.9 million and average purchase accounting loan discounts were $34.6 million and $36.5 million for the three-month periods ended December 31, 2021 and September 30, 2021, respectively. The reduction in accretion income reduced the net interest margin by 2 basis points for the three-month period ended December 31, 2021.
Net interest income on a fully taxable equivalent basis was $140.8 million for the three-month period ended December 31, 2021 and $146.4 million for the three-month period ended September 30, 2021. This decrease in net interest income for the three-month period ended December 31, 2021 was the result of a $6.1 million decrease in interest income which was partially offset by a $490,000 decrease in interest expense. The $6.1 million decrease in interest income was primarily the result of a $5.9 million decrease in loan interest income and a $382,000 net decrease in investment income, which was partially offset by a $164,000 increase in interest-bearing balances due from banks. The $490,000 decrease in interest expense was primarily the result of a decrease in interest expense on deposits.
The Company reported $32.0 million of non-interest income for the fourth quarter of 2021. The most important components of the fourth quarter non-interest income were $11.1 million from other service charges and fees, $6.2 million from service charges on deposit accounts, $5.4 million in mortgage lending income, $5.3 million from other income, $919,000 million from dividends from FHLB, FRB, FNBB and other, $792,000 from gain on sales of SBA loans and $737,000 from gain on OREO.
Non-interest expense for the fourth quarter of 2021 was $77.1 million. The most important components of the fourth quarter non-interest expense were $43.8 million from salaries and employee benefits, $16.9 million in other expense, $9.0 million in occupancy and equipment expenses and $6.5 million in data processing expenses. Also included within non-interest expense was $880,000 in merger and acquisition expenses. For the fourth quarter of 2021, our efficiency ratio was 43.79%.
Financial Condition
Total loans receivable were $9.84 billion at December 31, 2021 compared to $9.90 billion at September 30, 2021. Total deposits were $14.26 billion at December 31, 2021 compared to $14.00 billion at September 30, 2021. Total assets were $18.05 billion at December 31, 2021 compared to $17.77 billion at September 30, 2021.
During the fourth quarter 2021, the Company experienced approximately $65.0 million in loan decline. Centennial CFG experienced $285.7 million of organic loan growth and had loans of $1.92 billion at December 31, 2021. Our legacy footprint experienced $222.0 million in organic loan decline and $128.7 million in PPP loan decline during the quarter.
Non-performing loans to total loans was 0.51% as of September 30, 2021 and December 31, 2021. Non-performing assets to total assets was 0.29% as of September 30, 2021 and December 31, 2021. Net charge-offs were $2.0 million and $1.8 million for the three months ended December 31, 2021 and September 30, 2021, respectively.
Non-performing loans at December 31, 2021 were $13.9 million, $26.8 million, $470,000, $1.5 million and $7.5 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $50.2 million. Non-performing assets at December 31, 2021 were $14.4 million, $27.9 million, $470,000, $1.5 million and $7.5 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $51.8 million.
The Company's allowance for credit losses on loans was $236.7 million at December 31, 2021, or 2.41% of total loans, compared to the allowance for credit losses of $238.7 million, or 2.41% of total loans, at September 30, 2021. The Company's allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.43%(1) and 2.47%(1) for the three months ended December 31, 2021 and September 30, 2021, respectively. As of December 31, 2021 and September 30, 2021, the Company's allowance for credit losses on loans was 471.61% and 468.77% of its total non-performing loans, respectively.
Stockholders' equity was $2.77 billion at December 31, 2021 compared to $2.74 billion at September 30, 2021, an increase of approximately $29.7 million. The increase in stockholders' equity was primarily associated with the $50.4 million increase in retained earnings, which was partially offset by a $15.5 million decrease in accumulated other comprehensive income and net stock repurchases and share-based compensation activity of $5.2 million. Book value per common share was $16.90 at December 31, 2021 compared to $16.68 at September 30, 2021. Tangible book value per common share (non-GAAP) was $10.80(1) at December 31, 2021 compared to $10.59(1)at September 30, 2021, an increase of 7.86% on an annualized basis.
__________________
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
Branches
The Company currently has 76 branches in Arkansas, 78 branches in Florida, 5 branches in Alabama and one branch in New York City.
Acquisition
The Company's previously announced acquisition of Happy Bancshares, Inc. ("Happy") and its bank subsidiary, Happy State Bank, is currently expected to close during the first quarter of 2022, subject to Federal Reserve Board approval. The Company received approval for the merger from the Arkansas State Banking Board and the Arkansas State Bank Commissioner as well as the approval of the shareholders of each company in December of 2021.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, January 20, 2022. We encourage all participants to pre-register for the conference call using the following link: https://events.q4inc.com/attendee/357760552. 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 1-844-200-6205, Passcode: 865838. A replay of the call will be available by calling 1-866-813-9403, Passcode: 153312, which will be available until February 3, 2022 at 10:59 p.m. CT (11:59 p.m. 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.
About Home BancShares
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 New York Stock Exchange under the symbol "HOMB." The Company was founded in 1998. Visit www.homebancshares.com or www.my100bank.com for more information.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company's management uses these non-GAAP financial measures--including net income (earnings), as adjusted; pre-tax, pre-provision, net income (PPNR); pre-tax, pre-provision, profit percentage; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets excluding intangible amortization; return on average assets excluding excess liquidity; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity excluding intangible amortization; return on average tangible common equity, as adjusted; efficiency ratio, as adjusted; net interest margin, excluding PPP loans; allowance for credit losses to total loans, excluding PPP loans; tangible book value per common share and tangible common equity to tangible assets--to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions (including the effect of the PPP loans) that management believes are not indicative of the Company's primary business operating results. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
General
This release may contain forward-looking statements regarding the Company's plans, expectations, goals and outlook for the future, as well as statements about the benefits of the business combination transaction involving Home and Happy. 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 possibility that the proposed acquisition of Happy does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all; the possibility that such transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, ongoing or future effects of the COVID-19 pandemic, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Home and Happy operate; the ability to promptly and effectively integrate the businesses of Home and Happy; the reaction to the transaction of the companies' customers, employees and counterparties; diversion of management time on acquisition-related issues; the effect of any future mergers, acquisitions or other transactions to which we or our bank subsidiary may from time to time be a party, including as a result of one or more of the factors described above as they would relate to such transaction; the ability to identify, enter into and/or close additional acquisitions; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations, including those in response to the COVID-19 pandemic; technological changes and cybersecurity risks; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; changes in the assumptions used in making the forward-looking statements; and other factors described in reports we file with the Securities and Exchange Commission (the "SEC"), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021.
Additional Important Information and Where to Find It
In connection with the proposed acquisition of Happy, the Company has filed with the SEC a Registration Statement on Form S-4 (the "Registration Statement") to register the shares of the Company's common stock to be issued to shareholders of Happy in connection with the transaction. The Registration Statement includes a Joint Proxy Statement of the Company and Happy and a Prospectus of the Company, as well as other relevant materials regarding the proposed merger transaction involving the Company and Happy. INVESTORS AND SECURITY HOLDERS OF THE COMPANY AND HAPPY ARE ADVISED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE JOINT PROXY STATEMENT/PROSPECTUS BECAUSE THEY CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER TRANSACTION. Investors and security holders may obtain free copies of these documents and other documents filed with the SEC on the SEC's website at http://www.sec.gov. Investors and security holders may also obtain free copies of the documents filed with the SEC by the Company at the Company's website at http://www.homebancshares.com, Investor Relations, or by contacting Donna Townsell, by telephone at (501) 328-4625.
####
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)
| (In thousands) |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
Dec 31, 2020 |
|||||
| ASSETS | ||||||||||
| Cash and due from banks | $ | 119,908 | $ | 146,378 | $ | 182,226 | $ | 218,814 | $ | 242,173 |
| Interest-bearing deposits with other banks | 3,530,407 | 3,133,878 | 2,759,027 | 2,259,734 | 1,021,615 | |||||
| Cash and cash equivalents | 3,650,315 | 3,280,256 | 2,941,253 | 2,478,548 | 1,263,788 | |||||
|
Investment securities - available-for sale, net of allowance for credit losses |
3,119,807 | 3,150,608 | 3,053,712 | 2,539,123 | 2,473,781 | |||||
| Loans receivable | 9,836,089 | 9,901,100 | 10,199,175 | 10,778,493 | 11,220,721 | |||||
| Allowance for credit losses | (236,714) | (238,673) | (240,451) | (242,932) | (245,473) | |||||
| Loans receivable, net | 9,599,375 | 9,662,427 | 9,958,724 | 10,535,561 | 10,975,248 | |||||
| Bank premises and equipment, net | 275,760 | 276,972 | 278,502 | 278,620 | 278,614 | |||||
| Foreclosed assets held for sale | 1,630 | 1,171 | 1,969 | 3,004 | 4,420 | |||||
| Cash value of life insurance | 105,135 | 104,638 | 104,132 | 103,599 | 103,519 | |||||
| Accrued interest receivable | 46,736 | 48,577 | 48,725 | 55,495 | 60,528 | |||||
| Deferred tax asset, net | 78,290 | 69,724 | 72,273 | 77,145 | 70,249 | |||||
| Goodwill | 973,025 | 973,025 | 973,025 | 973,025 | 973,025 | |||||
| Core deposit and other intangibles | 25,045 | 26,466 | 27,886 | 29,307 | 30,728 | |||||
| Other assets | 177,020 | 171,192 | 166,991 | 166,814 | 164,904 | |||||
| Total assets | $ | 18,052,138 | $ | 17,765,056 | $ | 17,627,192 | $ | 17,240,241 | $ | 16,398,804 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Liabilities | ||||||||||
| Deposits: | ||||||||||
| Demand and non-interest-bearing | $ | 4,127,878 | $ | 4,139,149 | $ | 4,076,570 | $ | 3,859,722 | $ | 3,266,753 |
|
Savings and interest-bearing
transaction accounts
|
9,251,805 | 8,813,326 | 8,744,900 | 8,477,208 | 8,212,240 | |||||
| Time deposits | 880,887 | 1,050,896 | 1,069,871 | 1,175,664 | 1,246,797 | |||||
| Total deposits | 14,260,570 | 14,003,371 | 13,891,341 | 13,512,594 | 12,725,790 | |||||
|
Securities sold under agreements to
repurchase
|
140,886 | 141,002 | 150,540 | 162,929 | 168,931 | |||||
| FHLB and other borrowed funds | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | |||||
|
Accrued interest payable and other
liabilities
|
113,868 | 113,721 | 118,415 | 148,999 | 127,999 | |||||
| Subordinated debentures | 371,093 | 370,900 | 370,707 | 370,515 | 370,326 | |||||
| Total liabilities | 15,286,417 | 15,028,994 | 14,931,003 | 14,595,037 | 13,793,046 | |||||
| Stockholders' equity | ||||||||||
| Common stock | 1,637 | 1,640 | 1,645 | 1,651 | 1,651 | |||||
| Capital surplus | 1,487,373 | 1,492,588 | 1,501,615 | 1,516,286 | 1,520,617 | |||||
| Retained earnings | 1,266,249 | 1,215,831 | 1,163,810 | 1,107,818 | 1,039,370 | |||||
|
Accumulated other comprehensive
income
|
10,462 | 26,003 | 29,119 | 19,449 | 44,120 | |||||
| Total stockholders' equity | 2,765,721 | 2,736,062 | 2,696,189 | 2,645,204 | 2,605,758 | |||||
|
Total liabilities and stockholders'
equity
|
$ | 18,052,138 | $ | 17,765,056 | $ | 17,627,192 | $ | 17,240,241 | $ | 16,398,804 |
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
| Quarter Ended | Year Ended | |||||||||||||
| (In thousands) |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
Dec 31, 2020 |
Dec 31, 2021 |
Dec 31, 2020 |
|||||||
| Interest income | ||||||||||||||
| Loans | $ | 136,750 | $ | 142,609 | $ | 141,684 | $ | 150,917 | $ | 153,407 | $ | 571,960 | $ | 625,338 |
| Investment securities | ||||||||||||||
| Taxable | 8,121 | 8,495 | 7,185 | 6,253 | 6,900 | 30,054 | 32,596 | |||||||
| Tax-exempt | 4,827 | 4,839 | 4,905 | 5,071 | 4,979 | 19,642 | 16,158 | |||||||
| Deposits - other banks | 1,281 | 1,117 | 707 | 410 | 270 | 3,515 | 1,849 | |||||||
| Federal funds sold | - | - | - | - | - | - | 21 | |||||||
| Total interest income | 150,979 | 157,060 | 154,481 | 162,651 | 165,556 | 625,171 | 675,962 | |||||||
| Interest expense | ||||||||||||||
| Interest on deposits | 5,155 | 5,642 | 6,434 | 7,705 | 10,596 | 24,936 | 63,110 | |||||||
| Federal funds purchased | - | - | - | - | - | - | 13 | |||||||
| FHLB borrowed funds | 1,916 | 1,917 | 1,896 | 1,875 | 1,917 | 7,604 | 9,506 | |||||||
|
Securities sold under
agreements to repurchase
|
98 | 102 | 107 | 190 | 208 | 497 | 1,167 | |||||||
| Subordinated debentures | 4,790 | 4,788 | 4,792 | 4,793 | 4,810 | 19,163 | 19,611 | |||||||
| Total interest expense | 11,959 | 12,449 | 13,229 | 14,563 | 17,531 | 52,200 | 93,407 | |||||||
| Net interest income | 139,020 | 144,611 | 141,252 | 148,088 | 148,025 | 572,971 | 582,555 | |||||||
| Provision for credit losses | - | - | - | - | - | - | 112,264 | |||||||
|
Provision for credit loss -
unfunded commitments
|
- | - | (4,752) | - | - | (4,752) | 16,989 | |||||||
| Total credit loss expense | - | - | (4,752) | - | - | (4,752) | 129,253 | |||||||
|
Net interest income after provision for credit
losses
|
139,020 | 144,611 | 146,004 | 148,088 | 148,025 | 577,723 | 453,302 | |||||||
| Non-interest income | ||||||||||||||
|
Service charges on deposit accounts |
6,217 | 5,941 | 5,116 | 5,002 | 5,544 | 22,276 | 21,381 | |||||||
| Other service charges and fees | 11,133 | 8,051 | 9,659 | 7,608 | 8,425 | 36,451 | 30,686 | |||||||
| Trust fees | 515 | 479 | 444 | 522 | 420 | 1,960 | 1,633 | |||||||
| Mortgage lending income | 5,359 | 5,948 | 6,202 | 8,167 | 10,071 | 25,676 | 29,065 | |||||||
| Insurance commissions | 387 | 586 | 478 | 492 | 366 | 1,943 | 1,848 | |||||||
|
Increase in cash value of life insurance |
501 | 509 | 537 | 502 | 534 | 2,049 | 2,200 | |||||||
|
Dividends from FHLB, FRB, FNBB & other |
919 | 2,661 | 2,646 | 8,609 | 967 | 14,835 | 12,472 | |||||||
| Gain on SBA loans | 792 | 439 | 1,149 | - | 304 | 2,380 | 645 | |||||||
|
(Loss) gain on branches,
equipment and other
assets, net
|
(19) | (34) | (23) | (29) | 217 | (105) | 326 | |||||||
| Gain on OREO, net | 737 | 246 | 619 | 401 | 150 | 2,003 | 1,132 | |||||||
| Gain on securities, net | - | - | - | 219 | - | 219 | - | |||||||
|
Fair value adjustment for
marketable securities
|
85 | 61 | 1,250 | 5,782 | 4,271 | 7,178 | (1,978) | |||||||
| Other income | 5,338 | 4,322 | 3,043 | 8,001 | 2,616 | 20,704 | 12,376 | |||||||
| Total non-interest income | 31,964 | 29,209 | 31,120 | 45,276 | 33,885 | 137,569 | 111,786 | |||||||
| Non-interest expense | ||||||||||||||
| Salaries and employee benefits | 43,765 | 42,469 | 42,462 | 42,059 | 43,022 | 170,755 | 163,950 | |||||||
| Occupancy and equipment | 9,047 | 9,305 | 9,042 | 9,237 | 9,801 | 36,631 | 38,412 | |||||||
| Data processing expense | 6,493 | 6,024 | 5,893 | 5,870 | 5,171 | 24,280 | 19,032 | |||||||
|
Merger and acquisition expenses |
880 | 1,006 | - | - | - | 1,886 | 711 | |||||||
| Other operating expenses | 16,865 | 16,815 | 15,585 | 15,700 | 16,247 | 64,965 | 65,280 | |||||||
| Total non-interest expense | 77,050 | 75,619 | 72,982 | 72,866 | 74,241 | 298,517 | 287,385 | |||||||
| Income before income taxes | 93,934 | 98,201 | 104,142 | 120,498 | 107,669 | 416,775 | 277,703 | |||||||
| Income tax expense | 20,577 | 23,209 | 25,072 | 28,896 | 25,875 | 97,754 | 63,255 | |||||||
| Net income | $ | 73,357 | $ | 74,992 | $ | 79,070 | $ | 91,602 | $ | 81,794 | $ | 319,021 | $ | 214,448 |
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
| Quarter Ended | Year Ended | |||||||||||||
| (Dollars and shares in thousands, except per share data) | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2020 | |||||||
| PER SHARE DATA | ||||||||||||||
| Diluted earnings per common share | $ | 0.45 | $ | 0.46 | $ | 0.48 | $ | 0.55 | $ | 0.50 | $ | 1.94 | $ | 1.30 |
| Diluted earnings per common share, as adjusted, excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses (non-GAAP)(1) | 0.45 | 0.45 | 0.46 | 0.47 | 0.48 | 1.83 | 1.27 | |||||||
| Basic earnings per common share | 0.45 | 0.46 | 0.48 | 0.55 | 0.50 | 1.94 | 1.30 | |||||||
| Dividends per share - common | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.56 | 0.53 | |||||||
| Book value per common share | 16.90 | 16.68 | 16.39 | 16.02 | 15.78 | 16.90 | 15.78 | |||||||
|
Tangible book value per common share
(non-GAAP)(1)
|
10.80 | 10.59 | 10.31 | 9.95 | 9.70 | 10.80 | 9.70 | |||||||
| STOCK INFORMATION | ||||||||||||||
| Average common shares outstanding | 163,859 | 164,126 | 164,781 | 165,257 | 165,119 | 164,501 | 165,373 | |||||||
| Average diluted shares outstanding | 164,306 | 164,603 | 165,226 | 165,446 | 165,119 | 164,858 | 165,373 | |||||||
| End of period common shares outstanding | 163,699 | 164,008 | 164,488 | 165,141 | 165,095 | 163,699 | 165,095 | |||||||
| ANNUALIZED PERFORMANCE METRICS | ||||||||||||||
| Return on average assets (ROA) | 1.62 | % | 1.68 | % | 1.81 | % | 2.22 | % | 1.97 | % | 1.83 | % | 1.33 | % |
| Return on average assets excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROA, as adjusted) (non-GAAP)(1) | 1.64 | % | 1.67 | % | 1.75 | % | 1.88 | % | 1.90 | % | 1.73 | % | 1.30 | % |
|
Return on average assets excluding intangible
amortization (non-GAAP)(1)
|
1.75 | % | 1.81 | % | 1.95 | % | 2.39 | % | 2.13 | % | 1.96 | % | 1.45 | % |
| Return on average assets excluding excess liquidity (non-GAAP)(1) | 1.96 | % | 1.98 | % | 2.09 | % | 2.42 | % | 2.07 | % | 2.11 | % | 1.37 | % |
| Return on average common equity (ROE) | 10.63 | % | 10.97 | % | 11.92 | % | 14.15 | % | 12.72 | % | 11.89 | % | 8.57 | % |
|
Return on average common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses:
(ROE, as adjusted) (non-GAAP)(1)
|
10.72 | % | 10.87 | % | 11.54 | % | 11.95 | % | 12.23 | % | 11.26 | % | 8.41 | % |
|
Return on average tangible common equity
(ROTCE) (non-GAAP)(1)
|
16.73 | % | 17.39 | % | 19.12 | % | 22.90 | % | 20.96 | % | 18.95 | % | 14.31 | % |
| Return on average tangible common equity excluding intangible amortization (non-GAAP)(1) | 16.97 | % | 17.64 | % | 19.38 | % | 23.16 | % | 21.22 | % | 19.20 | % | 14.59 | % |
| Return on average tangible common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROTCE, as adjusted) (non-GAAP)(1) | 16.87 | % | 17.23 | % | 18.50 | % | 19.33 | % | 20.15 | % | 17.95 | % | 14.04 | % |
(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 in thousands) | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2020 | |||||||
| Efficiency ratio | 43.79 | % | 42.26 | % | 41.09 | % | 36.60 | % | 39.64 | % | 40.81 | % | 40.20 | % |
| Efficiency ratio, as adjusted (non-GAAP)(1) | 43.48 | % | 42.29 | % | 42.07 | % | 40.68 | % | 40.67 | % | 42.12 | % | 40.36 | % |
| Net interest margin - FTE (NIM) | 3.42 | % | 3.60 | % | 3.61 | % | 4.02 | % | 4.00 | % | 3.66 | % | 4.06 | % |
| Net interest margin - FTE, excluding PPP loans (non-GAAP)(1) | 3.32 | % | 3.43 | % | 3.54 | % | 3.86 | % | 3.97 | % | 3.53 | % | 4.08 | % |
| Fully taxable equivalent adjustment | $ | 1,736 | $ | 1,748 | $ | 1,774 | $ | 1,821 | $ | 1,778 | $ | 7,079 | $ | 6,015 |
| Total revenue (net) | 170,984 | 173,820 | 172,372 | 193,364 | 181,910 | 710,540 | 694,341 | |||||||
| Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) | 93,934 | 98,201 | 99,390 | 120,498 | 107,669 | 412,023 | 406,956 | |||||||
| Pre-tax net income to total revenue (net) | 54.94 | % | 56.50 | % | 60.42 | % | 62.32 | % | 59.19 | % | 58.66 | % | 40.00 | % |
|
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net))
(non-GAAP)(1)
|
54.94 | % | 56.50 | % | 57.66 | % | 62.32 | % | 59.19 | % | 57.99 | % | 58.61 | % |
| Total purchase accounting accretion | $ | 4,001 | $ | 4,868 | $ | 5,797 | $ | 5,485 | $ | 5,736 | $ | 20,151 | $ | 27,376 |
| Average purchase accounting loan discounts | 34,641 | 36,456 | 38,568 | 43,940 | 49,563 | 36,178 | 59,406 | |||||||
| OTHER OPERATING EXPENSES | ||||||||||||||
| Advertising | $ | 1,411 | $ | 1,204 | $ | 1,194 | $ | 1,046 | $ | 1,076 | $ | 4,855 | $ | 3,999 |
| Amortization of intangibles | 1,420 | 1,421 | 1,421 | 1,421 | 1,421 | 5,683 | 5,844 | |||||||
| Electronic banking expense | 2,442 | 2,521 | 2,616 | 2,238 | 2,282 | 9,817 | 8,477 | |||||||
| Directors' fees | 422 | 395 | 414 | 383 | 359 | 1,614 | 1,624 | |||||||
| Due from bank service charges | 257 | 265 | 273 | 249 | 254 | 1,044 | 975 | |||||||
| FDIC and state assessment | 1,353 | 1,648 | 1,108 | 1,363 | 1,493 | 5,472 | 6,494 | |||||||
| Insurance | 801 | 749 | 787 | 781 | 795 | 3,118 | 3,018 | |||||||
| Legal and accounting | 749 | 1,050 | 1,058 | 846 | 790 | 3,703 | 4,222 | |||||||
| Other professional fees | 1,754 | 1,787 | 1,796 | 1,613 | 1,528 | 6,950 | 8,150 | |||||||
| Operating supplies | 489 | 474 | 465 | 487 | 440 | 1,915 | 1,988 | |||||||
| Postage | 352 | 301 | 292 | 338 | 315 | 1,283 | 1,283 | |||||||
| Telephone | 343 | 371 | 365 | 346 | 347 | 1,425 | 1,302 | |||||||
| Other expense | 5,072 | 4,629 | 3,796 | 4,589 | 5,147 | 18,086 | 17,904 | |||||||
| Total other operating expenses | $ | 16,865 | $ | 16,815 | $ | 15,585 | $ | 15,700 | $ | 16,247 | $ | 64,965 | $ | 65,280 |
(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)
| (Dollars in thousands) |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
Dec 31, 2020 |
|||||
| BALANCE SHEET RATIOS | ||||||||||
| Total loans to total deposits | 68.97 | % | 70.71 | % | 73.42 | % | 79.77 | % | 88.17 | % |
| Common equity to assets | 15.32 | % | 15.40 | % | 15.30 | % | 15.34 | % | 15.89 | % |
|
Tangible common equity to tangible assets
(non-GAAP)(1)
|
10.36 | % | 10.36 | % | 10.20 | % | 10.12 | % | 10.41 | % |
| . | ||||||||||
| LOANS RECEIVABLE | ||||||||||
| Real estate | ||||||||||
| Commercial real estate loans | ||||||||||
| Non-farm/non-residential | $ | 3,889,284 | $ | 4,005,841 | $ | 4,144,375 | $ | 4,289,142 | $ | 4,429,060 |
| Construction/land development | 1,850,050 | 1,742,687 | 1,541,482 | 1,612,973 | 1,562,298 | |||||
| Agricultural | 130,674 | 138,881 | 126,293 | 113,382 | 114,431 | |||||
| Residential real estate loans | ||||||||||
| Residential 1-4 family | 1,274,953 | 1,273,988 | 1,316,485 | 1,437,546 | 1,536,257 | |||||
| Multifamily residential | 280,837 | 274,131 | 332,256 | 377,661 | 536,538 | |||||
| Total real estate | 7,425,798 | 7,435,528 | 7,460,891 | 7,830,704 | 8,178,584 | |||||
| Consumer | 825,519 | 814,732 | 824,938 | 839,819 | 864,690 | |||||
| Commercial and industrial | 1,386,747 | 1,414,079 | 1,612,826 | 1,794,787 | 1,896,442 | |||||
| Agricultural | 43,920 | 68,272 | 69,152 | 65,017 | 66,869 | |||||
| Other | 154,105 | 168,489 | 231,368 | 248,166 | 214,136 | |||||
| Loans receivable | $ | 9,836,089 | $ | 9,901,100 | $ | 10,199,175 | $ | 10,778,493 | $ | 11,220,721 |
| Paycheck Protection Program (PPP) loans (net of discounts) (included in total loans receivable) | 112,814 | 241,476 | 473,894 | 646,382 | 675,225 | |||||
| ALLOWANCE FOR CREDIT LOSSES | ||||||||||
| Balance, beginning of period | $ | 238,673 | $ | 240,451 | $ | 242,932 | $ | 245,473 | $ | 248,224 |
| Loans charged off | 3,125 | 2,469 | 3,023 | 3,047 | 3,040 | |||||
| Recoveries of loans previously charged off | 1,166 | 691 | 542 | 506 | 289 | |||||
| Net loans charged off | 1,959 | 1,778 | 2,481 | 2,541 | 2,751 | |||||
| Provision for credit losses - loans | - | - | - | - | - | |||||
| Balance, end of period | $ | 236,714 | $ | 238,673 | $ | 240,451 | $ | 242,932 | $ | 245,473 |
| Net charge-offs to average total loans | 0.08 | % | 0.07 | % | 0.09 | % | 0.09 | % | 0.10 | % |
| Allowance for credit losses to total loans | 2.41 | % | 2.41 | % | 2.36 | % | 2.25 | % | 2.19 | % |
| Allowance for credit losses to total loans, excluding PPP loans | 2.43 | % | 2.47 | % | 2.47 | % | 2.40 | % | 2.33 | % |
| NON-PERFORMING ASSETS | ||||||||||
| Non-performing loans | ||||||||||
| Non-accrual loans | $ | 47,158 | $ | 47,604 | $ | 55,269 | $ | 59,142 | $ | 64,528 |
| Loans past due 90 days or more | 3,035 | 3,311 | 3,667 | 4,209 | 9,610 | |||||
| Total non-performing loans | 50,193 | 50,915 | 58,936 | 63,351 | 74,138 | |||||
| Other non-performing assets | ||||||||||
| Foreclosed assets held for sale, net | 1,630 | 1,171 | 1,969 | 3,004 | 4,420 | |||||
| Other non-performing assets | - | - | - | - | - | |||||
| Total other non-performing assets | 1,630 | 1,171 | 1,969 | 3,004 | 4,420 | |||||
| Total non-performing assets | $ | 51,823 | $ | 52,086 | $ | 60,905 | $ | 66,355 | $ | 78,558 |
| Allowance for credit losses for loans to non-performing loans | 471.61 | % | 468.77 | % | 407.99 | % | 383.47 | % | 331.10 | % |
| Non-performing loans to total loans | 0.51 | % | 0.51 | % | 0.58 | % | 0.59 | % | 0.66 | % |
| Non-performing assets to total assets | 0.29 | % | 0.29 | % | 0.35 | % | 0.38 | % | 0.48 | % |
(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, 2021 | September 30, 2021 | |||||||||||
| (Dollars in thousands) |
Average Balance |
Income/ Expense |
Yield/ Rate |
Average Balance |
Income/ Expense |
Yield/ Rate |
||||||
| ASSETS | ||||||||||||
| Earning assets | ||||||||||||
| Interest-bearing balances due from banks | $ | 3,261,846 | $ | 1,281 | 0.16 | % | $ | 2,914,785 | $ | 1,117 | 0.15 | % |
| Federal funds sold | 33 | - | 0.00 | % | 82 | - | 0.00 | % | ||||
| Investment securities - taxable | 2,278,440 | 8,121 | 1.41 | % | 2,289,680 | 8,495 | 1.47 | % | ||||
| Investment securities - non-taxable - FTE | 858,692 | 6,408 | 2.96 | % | 862,586 | 6,416 | 2.95 | % | ||||
| Loans receivable - FTE | 9,909,711 | 136,905 | 5.48 | % | 10,043,393 | 142,780 | 5.64 | % | ||||
| Total interest-earning assets | 16,308,722 | 152,715 | 3.72 | % | 16,110,526 | 158,808 | 3.91 | % | ||||
| Non-earning assets | 1,606,005 | 1,584,700 | ||||||||||
| Total assets | $ | 17,914,727 | $ | 17,695,226 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Liabilities | ||||||||||||
| Interest-bearing liabilities | ||||||||||||
| Savings and interest-bearing transaction accounts | $ | 9,037,302 | $ | 3,667 | 0.16 | % | $ | 8,794,657 | $ | 3,613 | 0.16 | % |
| Time deposits | 958,309 | 1,488 | 0.62 | % | 1,063,500 | 2,029 | 0.76 | % | ||||
| Total interest-bearing deposits | 9,995,611 | 5,155 | 0.20 | % | 9,858,157 | 5,642 | 0.23 | % | ||||
| Securities sold under agreement to repurchase | 143,811 | 98 | 0.27 | % | 143,937 | 102 | 0.28 | % | ||||
| FHLB borrowed funds | 400,000 | 1,916 | 1.90 | % | 400,000 | 1,917 | 1.90 | % | ||||
| Subordinated debentures | 370,999 | 4,790 | 5.12 | % | 370,805 | 4,788 | 5.12 | % | ||||
| Total interest-bearing liabilities | 10,910,421 | 11,959 | 0.43 | % | 10,772,899 | 12,449 | 0.46 | % | ||||
| Non-interest bearing liabilities | ||||||||||||
| Non-interest bearing deposits | 4,149,978 | 4,091,174 | ||||||||||
| Other liabilities | 116,023 | 120,200 | ||||||||||
| Total liabilities | 15,176,422 | 14,984,273 | ||||||||||
| Shareholders' equity | 2,738,305 | 2,710,953 | ||||||||||
| Total liabilities and shareholders' equity | $ | 17,914,727 | $ | 17,695,226 | ||||||||
| Net interest spread | 3.29 | % | 3.45 | % | ||||||||
| Net interest income and margin - FTE | $ | 140,756 | 3.42 | % | $ | 146,359 | 3.60 | % |
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
| Year Ended | ||||||||||||
| December 31, 2021 | December 31, 2020 | |||||||||||
| (Dollars in thousands) |
Average Balance |
Income/ Expense |
Yield/ Rate |
Average Balance |
Income/ Expense |
Yield/ Rate |
||||||
| ASSETS | ||||||||||||
| Earning assets | ||||||||||||
| Interest-bearing balances due from banks | $ | 2,596,460 | $ | 3,515 | 0.14 | % | $ | 761,174 | $ | 1,849 | 0.24 | % |
| Federal funds sold | 71 | - | 0.00 | % | 1,330 | 21 | 1.58 | % | ||||
| Investment securities - taxable | 2,031,139 | 30,054 | 1.48 | % | 1,653,159 | 32,596 | 1.97 | % | ||||
| Investment securities - non-taxable - FTE | 858,503 | 26,017 | 3.03 | % | 577,444 | 21,262 | 3.68 | % | ||||
| Loans receivable - FTE | 10,375,457 | 572,664 | 5.52 | % | 11,504,123 | 626,249 | 5.44 | % | ||||
| Total interest-earning assets | 15,861,630 | 632,250 | 3.99 | % | 14,497,230 | 681,977 | 4.70 | % | ||||
| Non-earning assets | 1,597,355 | 1,640,064 | ||||||||||
| Total assets | $ | 17,458,985 | $ | 16,137,294 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Liabilities | ||||||||||||
| Interest-bearing liabilities | ||||||||||||
| Savings and interest-bearing transaction accounts | $ | 8,716,004 | $ | 15,956 | 0.18 | % | $ | 7,686,621 | $ | 36,084 | 0.47 | % |
| Time deposits | 1,087,875 | 8,980 | 0.83 | % | 1,756,138 | 27,026 | 1.54 | % | ||||
| Total interest-bearing deposits | 9,803,879 | 24,936 | 0.25 | % | 9,442,759 | 63,110 | 0.67 | % | ||||
| Federal funds purchased | - | - | 0.00 | % | 1,557 | 13 | 0.83 | % | ||||
| Securities sold under agreement to repurchase | 151,190 | 497 | 0.33 | % | 151,573 | 1,167 | 0.77 | % | ||||
| FHLB borrowed funds | 400,000 | 7,604 | 1.90 | % | 534,608 | 9,506 | 1.78 | % | ||||
| Subordinated debentures | 370,712 | 19,163 | 5.17 | % | 369,943 | 19,611 | 5.30 | % | ||||
| Total interest-bearing liabilities | 10,725,781 | 52,200 | 0.49 | % | 10,500,440 | 93,407 | 0.89 | % | ||||
| Non-interest bearing liabilities | ||||||||||||
| Non-interest bearing deposits | 3,924,341 | 2,998,560 | ||||||||||
| Other liabilities | 124,724 | 135,094 | ||||||||||
| Total liabilities | 14,774,846 | 13,634,094 | ||||||||||
| Shareholders' equity | 2,684,139 | 2,503,200 | ||||||||||
| Total liabilities and shareholders' equity | $ | 17,458,985 | $ | 16,137,294 | ||||||||
| Net interest spread | 3.50 | % | 3.81 | % | ||||||||
| Net interest income and margin - FTE | $ | 580,050 | 3.66 | % | $ | 588,570 | 4.06 | % |
Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Year Ended | |||||||||||||
|
(Dollars and shares in thousands, except per share data) |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
Dec 31, 2020 |
Dec 31, 2021 |
Dec 31, 2020 |
|||||||
| EARNINGS, AS ADJUSTED | ||||||||||||||
| GAAP net income available to common shareholders (A) | $ | 73,357 | $ | 74,992 | $ | 79,070 | $ | 91,602 | $ | 81,794 | $ | 319,021 | $ | 214,448 |
| Pre-tax adjustments | ||||||||||||||
| Fair value adjustment for marketable securities | (85) | (61) | (1,250) | (5,782) | (4,271) | (7,178) | 1,978 | |||||||
| Special dividend from equity investment | - | (2,227) | (2,200) | (8,073) | - | (12,500) | (10,185) | |||||||
| Gain on securities | - | - | - | (219) | - | (219) | - | |||||||
| Recoveries on historic losses | - | - | - | (5,107) | - | (5,107) | - | |||||||
| Branch write-off expense | - | - | - | - | - | - | 981 | |||||||
| Outsourced special project expense | - | - | - | - | - | - | 1,092 | |||||||
| Merger and acquisition expenses | 880 | 1,006 | - | - | - | 1,886 | 711 | |||||||
| Total pre-tax adjustments | 795 | (1,282) | (3,450) | (19,181) | (4,271) | (23,118) | (5,423) | |||||||
| Tax-effect of adjustments | 188 | (587) | (888) | (4,937) | (1,116) | (6,225) | (1,417) | |||||||
| Total adjustments after-tax (B) | 607 | (695) | (2,562) | (14,244) | (3,155) | (16,893) | (4,006) | |||||||
| Earnings, as adjusted (C) | $ | 73,964 | $ | 74,297 | $ | 76,508 | $ | 77,358 | $ | 78,639 | $ | 302,128 | $ | 210,442 |
| Average diluted shares outstanding (D) | 164,306 | 164,603 | 165,226 | 165,446 | 165,119 | 164,858 | 165,373 | |||||||
| GAAP diluted earnings per share: (A/D) | $ | 0.45 | $ | 0.46 | $ | 0.48 | $ | 0.55 | $ | 0.50 | $ | 1.94 | $ | 1.30 |
| Adjustments after-tax: (B/D) | - | (0.01) | (0.02) | (0.08) | (0.02) | (0.11) | (0.03) | |||||||
| Diluted earnings per common share, as adjusted, excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (C/D) | $ | 0.45 | $ | 0.45 | $ | 0.46 | $ | 0.47 | $ | 0.48 | $ | 1.83 | $ | 1.27 |
| ANNUALIZED RETURN ON AVERAGE ASSETS | ||||||||||||||
| Return on average assets: (A/G) | 1.62 | % | 1.68 | % | 1.81 | % | 2.22 | % | 1.97 | % | 1.83 | % | 1.33 | % |
| Return on average assets excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROA, as adjusted) ((A+F)/G) | 1.64 | % | 1.67 | % | 1.75 | % | 1.88 | % | 1.90 | % | 1.73 | % | 1.30 | % |
| Return on average assets excluding intangible amortization: ((A+E)/(G-H)) | 1.75 | % | 1.81 | % | 1.95 | % | 2.39 | % | 2.13 | % | 1.96 | % | 1.45 | % |
| Return on average assets excluding excess liquidity: (A/(G-I)) | 1.96 | % | 1.98 | % | 2.09 | % | 2.42 | % | 2.07 | % | 2.11 | % | 1.37 | % |
| GAAP net income available to common shareholders (A) | $ | 73,357 | $ | 74,992 | $ | 79,070 | $ | 91,602 | $ | 81,794 | $ | 319,021 | $ | 214,448 |
| Amortization of intangibles (D) | 1,420 | 1,421 | 1,421 | 1,421 | 1,421 | 5,683 | 5,844 | |||||||
| Amortization of intangibles after-tax (E) | 1,054 | 1,055 | 1,055 | 1,055 | 1,049 | 4,220 | 4,317 | |||||||
| Adjustments after-tax (F) | 607 | (695) | (2,562) | (14,244) | (3,155) | (16,893) | (4,006) | |||||||
| Average assets (G) | 17,914,727 | 17,695,226 | 17,491,359 | 16,718,890 | 16,493,066 | 17,458,985 | 16,137,294 | |||||||
| Average goodwill, core deposits & other intangible assets (H) | 998,760 | 1,000,175 | 1,001,598 | 1,003,011 | 1,004,432 | 1,000,872 | 1,004,157 | |||||||
| Average interest bearing cash balance | 3,261,846 | 2,914,785 | 2,577,101 | 1,610,463 | 1,029,047 | 2,596,460 | 761,174 | |||||||
| Average historical interest bearing cash balance | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | |||||||
| Average excess cash balance (I) | 3,036,846 | 2,689,785 | 2,352,101 | 1,385,463 | 804,047 | 2,371,460 | 536,174 |
Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Year Ended | |||||||||||||
| (Dollars in thousands) |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
Dec 31, 2020 |
Dec 31, 2021 |
Dec 31, 2020 |
|||||||
| ANNUALIZED RETURN ON AVERAGE COMMON EQUITY | ||||||||||||||
| Return on average common equity: (A/D) | 10.63 | % | 10.97 | % | 11.92 | % | 14.15 | % | 12.72 | % | 11.89 | % | 8.57 | % |
|
Return on average common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses:
(ROE, as adjusted) ((A+C)/D)
|
10.72 | % | 10.87 | % | 11.54 | % | 11.95 | % | 12.23 | % | 11.26 | % | 8.41 | % |
| Return on average tangible common equity: (A/(D-E)) | 16.73 | % | 17.39 | % | 19.12 | % | 22.90 | % | 20.96 | % | 18.95 | % | 14.31 | % |
| Return on average tangible common equity excluding intangible amortization: (B/(D-E)) | 16.97 | % | 17.64 | % | 19.38 | % | 23.16 | % | 21.22 | % | 19.20 | % | 14.59 | % |
| Return on average tangible common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROTCE, as adjusted) ((A+C)/(D-E)) | 16.87 | % | 17.23 | % | 18.50 | % | 19.33 | % | 20.15 | % | 17.95 | % | 14.04 | % |
| GAAP net income available to common shareholders (A) | $ | 73,357 | $ | 74,992 | $ | 79,070 | $ | 91,602 | $ | 81,794 | $ | 319,021 | $ | 214,448 |
| Earnings excluding intangible amortization (B) | 74,411 | 76,047 | 80,125 | 92,657 | 82,843 | 323,241 | 218,765 | |||||||
| Adjustments after-tax (C) | 607 | (695) | (2,562) | (14,244) | (3,155) | (16,893) | (4,006) | |||||||
| Average common equity (D) | 2,738,305 | 2,710,953 | 2,660,147 | 2,625,618 | 2,557,251 | 2,684,139 | 2,503,200 | |||||||
| Average goodwill, core deposits & other intangible assets (E) | 998,760 | 1,000,175 | 1,001,598 | 1,003,011 | 1,004,432 | 1,000,872 | 1,004,157 | |||||||
| EFFICIENCY RATIO & P5NR | ||||||||||||||
| Efficiency ratio: ((D-F)/(B+C+E)) | 43.79 | % | 42.26 | % | 41.09 | % | 36.60 | % | 39.64 | % | 40.81 | % | 40.20 | % |
| Efficiency ratio, as adjusted: ((D-F-H)/(B+C+E-G)) | 43.48 | % | 42.29 | % | 42.07 | % | 40.68 | % | 40.67 | % | 42.12 | % | 40.36 | % |
| Pre-tax net income to total revenue (net) (A/(B+C)) | 54.94 | % | 56.50 | % | 60.42 | % | 62.32 | % | 59.19 | % | 58.66 | % | 40.00 | % |
| Pre-tax, pre-provision, net income (PPNR) (B+C-D) | $ | 93,934 | $ | 98,201 | $ | 99,390 | $ | 120,498 | $ | 107,669 | $ | 412,023 | $ | 406,956 |
| P5NR (Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C) | 54.94 | % | 56.50 | % | 57.66 | % | 62.32 | % | 59.19 | % | 57.99 | % | 58.61 | % |
| Pre-tax net income (A) | $ | 93,934 | $ | 98,201 | $ | 104,142 | $ | 120,498 | $ | 107,669 | $ | 416,775 | $ | 277,703 |
| Net interest income (B) | 139,020 | 144,611 | 141,252 | 148,088 | 148,025 | 572,971 | 582,555 | |||||||
| Non-interest income (C) | 31,964 | 29,209 | 31,120 | 45,276 | 33,885 | 137,569 | 111,786 | |||||||
| Non-interest expense (D) | 77,050 | 75,619 | 72,982 | 72,866 | 74,241 | 298,517 | 287,385 | |||||||
| Fully taxable equivalent adjustment (E) | 1,736 | 1,748 | 1,774 | 1,821 | 1,778 | 7,079 | 6,015 | |||||||
| Amortization of intangibles (F) | 1,420 | 1,421 | 1,421 | 1,421 | 1,421 | 5,683 | 5,844 | |||||||
| Adjustments: | ||||||||||||||
| Non-interest income: | ||||||||||||||
| Fair value adjustment for marketable securities | $ | 85 | $ | 61 | $ | 1,250 | $ | 5,782 | $ | 4,271 | $ | 7,178 | $ | (1,978) |
| Gain on OREO | 737 | 246 | 619 | 401 | 150 | 2,003 | 1,132 | |||||||
| (Loss) gain on branches, equipment and other assets, net | (19) | (34) | (23) | (29) | 217 | (105) | 326 | |||||||
| Special dividend from equity investment | - | 2,227 | 2,200 | 8,073 | - | 12,500 | 10,185 | |||||||
| Gain on securities | - | - | - | 219 | - | 219 | - | |||||||
| Recoveries on historic losses | - | - | - | 5,107 | - | 5,107 | - | |||||||
| Total non-interest income adjustments (G) | $ | 803 | $ | 2,500 | $ | 4,046 | $ | 19,553 | $ | 4,638 | $ | 26,902 | $ | 9,665 |
| Non-interest expense: | ||||||||||||||
| Branch write-off expense | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 981 |
| Merger and acquisition expenses | 880 | 1,006 | - | - | - | 1,886 | 711 | |||||||
| Outsourced special project expense | - | - | - | - | - | - | 1,092 | |||||||
| Total non-interest expense adjustments (H) | $ | 880 | $ | 1,006 | $ | - | $ | - | $ | - | $ | 1,886 | $ | 2,784 |
Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Year Ended | |||||||||||||
| (Dollars in thousands) |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
Dec 31, 2020 |
Dec 31, 2021 |
Dec 31, 2020 |
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| ANNUALIZED NET INTEREST MARGIN | ||||||||||||||
| Net interest margin: (A/C) | 3.42 | % | 3.60 | % | 3.61 | % | 4.02 | % | 4.00 | % | 3.66 | % | 4.06 | % |
| Net interest margin, excluding PPP loans:(B/D) | 3.32 | % | 3.43 | % | 3.54 | % | 3.86 | % | 3.97 | % | 3.53 | % | 4.08 | % |
| Net interest income - FTE (A) | $ | 140,756 | $ | 146,359 | $ | 143,026 | $ | 149,909 | $ | 149,803 | $ | 580,050 | $ | 588,570 |
| PPP loan interest & discount accretion income | 5,786 | 10,162 | 7,802 | 11,878 | 8,841 | 35,628 | 19,234 | |||||||
| Net interest income - FTE, excluding PPP loans (B) | $ | 134,970 | $ | 136,197 | $ | 135,224 | $ | 138,031 | $ | 140,962 | $ | 544,422 | $ | 569,336 |
| Average interest-earning assets (C) | $ | 16,308,722 | $ | 16,110,526 | $ | 15,892,519 | $ | 15,118,940 | $ | 14,900,381 | $ | 15,861,630 | $ | 14,497,230 |
| Average PPP loans | 162,969 | 371,523 | 581,371 | 633,790 | 775,861 | 434,710 | 547,328 | |||||||
| Average interest-earning assets, excluding PPP loans (D) | $ | 16,145,753 | $ | 15,739,003 | $ | 15,311,148 | $ | 14,485,150 | $ | 14,124,520 | $ | 15,426,920 | $ | 13,949,902 |
| Quarter Ended | ||||||||||||||
|
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
Dec 31, 2020 |
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| TANGIBLE BOOK VALUE PER COMMON SHARE | ||||||||||||||
| Book value per common share: (A/B) | $ | 16.90 | $ | 16.68 | $ | 16.39 | $ | 16.02 | $ | 15.78 | ||||
| Tangible book value per common share: ((A-C-D)/B) | 10.80 | 10.59 | 10.31 | 9.95 | 9.70 | |||||||||
| Total stockholders' equity (A) | $ | 2,765,721 | $ | 2,736,062 | $ | 2,696,189 | $ | 2,645,204 | $ | 2,605,758 | ||||
| End of period common shares outstanding (B) | 163,699 | 164,008 | 164,488 | 165,141 | 165,095 | |||||||||
| Goodwill (C) | 973,025 | 973,025 | 973,025 | 973,025 | 973,025 | |||||||||
|
Core deposit and other intangibles (D) |
25,045 | 26,466 | 27,886 | 29,307 | 30,728 | |||||||||
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | ||||||||||||||
| Equity to assets: (B/A) | 15.32 | % | 15.40 | % | 15.30 | % | 15.34 | % | 15.89 | % | ||||
| Tangible common equity to tangible assets: ((B-C-D)/(A-C-D)) | 10.36 | % | 10.36 | % | 10.20 | % | 10.12 | % | 10.41 | % | ||||
| Total assets (A) | $ | 18,052,138 | $ | 17,765,056 | $ | 17,627,192 | $ | 17,240,241 | $ | 16,398,804 | ||||
| Total stockholders' equity (B) | 2,765,721 | 2,736,062 | 2,696,189 | 2,645,204 | 2,605,758 | |||||||||
| Goodwill (C) | 973,025 | 973,025 | 973,025 | 973,025 | 973,025 | |||||||||
|
Core deposit and other intangibles (D) |
25,045 | 26,466 | 27,886 | 29,307 | 30,728 |