HOMB’s Unwavering Discipline, Strong Margins, Great Efficiency, Hard Work and Smart Investments Led to First Quarter Record Revenue and Profits

Company Release - 4/15/2021

CONWAY, Ark., April 15, 2021 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, released record quarterly earnings today.

Highlights of the First Quarter of 2021:

Metric Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020
Net Income $91.6 million $81.8 million $69.3 million $62.8 million $ 507,000  
Total Revenue (net) $193.4 million $181.9 million $176.1 million $173.7 million $162.7 million
Income (loss) before income taxes $120.5 million $107.7 million $90.4 million $82.1 million ($2.4 million)
Pre-tax net income, excluding provision for credit losses (PPNR) (non-GAAP)(1) $120.5 million $107.7 million $104.4 million $102.7 million $92.2 million
Pre-tax net income to total revenue (net)   62.32 %   59.19 %   51.32 %   47.25 %   -1.49 %
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)   62.32 %   59.19 %   59.28 %   59.15 %   56.67 %
ROA   2.22 %   1.97 %   1.66 %   1.55 %   0.01 %
ROA (pre-tax net income, excluding provision for credit losses) (non-GAAP)(1)   2.92 %   2.60 %   2.50 %   2.53 %   2.45 %
ROA, excluding provision for credit losses   2.22 %   1.97 %   1.91 %   1.92 %   1.87 %
(non-GAAP)(1)
NIM   4.02 %   4.00 %   3.92 %   4.11 %   4.22 %
NIM, excluding PPP loans (non-GAAP)(1)   3.87 %   3.97 %   3.98 %   4.16 %   4.22 %
Purchase Accounting Accretion $5.5 million $5.7 million $7.0 million $7.0 million $7.6 million
ROE   14.15 %   12.72 %   10.97 %   10.27 %   0.08 %
ROTCE (non-GAAP)(1)   22.90 %   20.96 %   18.29 %   17.40 %   0.14 %
Diluted Earnings Per Share $ 0.55   $ 0.50   $ 0.42   $ 0.38   $ 0.00  
Non-Performing Assets to Total Assets   0.38 %   0.48 %   0.47 %   0.39 %   0.44 %
Common Equity Tier 1 Capital   14.30 %   13.40 %   12.60 %   12.00 %   11.50 %
Leverage   11.10 %   10.80 %   10.40 %   10.30 %   10.80 %
Tier 1 Capital   14.90 %   14.00 %   13.20 %   12.60 %   12.10 %
Total Risk-Based Capital   18.80 %   17.80 %   16.90 %   16.20 %   15.70 %
Allowance for Credit Losses to Total Loans   2.25 %   2.19 %   2.12 %   1.99 %   2.01 %
Allowance for Credit Losses to Total Loans, excluding PPP loans (non-GAAP)(1)   2.40 %   2.33 %   2.29 %   2.15 %   2.01 %

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

“Approximately $11 billion in loans at a yield of 5.56% including accretion, PPP income, and event income; a 36.60% efficiency ratio; a ‘never give up’ approach to charge-offs; starting to reap the benefits of investments; along with a record $91.6 million in net income is paying off handsomely for HOMB shareholders,” said John Allison, Chairman.

“Great results come down to customer service and extreme discipline. We communicate with our customers and we helped them through the PPP process and that results in a long-term trusting partnership,” said Tracy French, Centennial Bank President and Chief Executive Officer.

Operating Highlights

Net income and earnings per share were quarterly records for the Company. Net income increased $9.8 million, or 11.99%, to $91.6 million for the three-month period ended March 31, 2021, from $81.8 million for the three-month period ended December 31, 2020. Earnings per share increased $0.05 per share, or 10.00%, to $0.55 per share for the three-month period ended March 31, 2021, from $0.50 per share for the three-month period ended December 31, 2020.

During the first quarter of 2021, the Company did not record any credit loss expense. The Company’s provisioning model is closely tied to unemployment rate projections which have continued to improve since the fourth quarter of 2020. 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 March 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 4.02% for the three-month period ended March 31, 2021 compared to 4.00% for the three-month period ended December 31, 2020. The yield on loans was 5.56% and 5.33% for the three months ended March 31, 2021 and December 31, 2020, respectively, as average loans decreased from $11.46 billion to $11.02 billion. Additionally, the rate on interest bearing deposits decreased to 0.33% as of March 31, 2021 from 0.44% as of December 31, 2020, with average balances of $9.55 billion and $9.59 billion, respectively.

As of March 31, 2021, we had $667.3 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 March 31, 2021 was 3.87%.(1) The PPP loans had a 12-basis point accretive impact to the yield on loans, and the PPP loans were accretive to the net interest margin by 16 basis points. This was primarily due to approximately $313.8 million of the Company’s PPP loans being forgiven during the first quarter of 2021 as well as the acceleration of deferred fees for the loans that were forgiven. The $313.8 million of PPP loans forgiven during the first quarter of 2021 were partially offset by $289.4 million in new PPP loans originated during the first quarter of 2021. The deferred fee income increased from $6.9 million to $10.4 million for the three-month periods ended December 31, 2020 and March 31, 2021, respectively.

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

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 $581.4 million of average interest-bearing cash balances in the first quarter of 2021 compared to the fourth quarter of 2020. This excess liquidity diluted the net interest margin by 16 basis points.

Purchase accounting accretion on acquired loans was $5.5 million and $5.7 million and average purchase accounting loan discounts were $43.9 million and $49.6 million for the three-month periods ended March 31, 2021 and December 31, 2020, respectively. Net amortization of time deposit premiums was $30,000 per quarter and net average remaining time deposit premiums were $115,000 and $146,000 for the three-month periods ended March 31, 2021 and December 31, 2020, respectively.

Net interest income on a fully taxable equivalent basis increased $142,000, or 0.09%, to $149.9 million for the three-month period ended March 31, 2021, from $149.8 million for the three-month period ended December 31, 2020. This increase in net interest income for the three-month period ended March 31, 2021 was the result of a $3.0 million decrease in interest expense, which was partially offset by a $2.8 million decrease in interest income. The $3.0 million decrease in interest expense was primarily the result of a $2.9 million decrease in interest expense on deposits and a $42,000 decrease in interest expense on FHLB borrowings. The $2.8 million decrease in interest income was primarily the result of a $2.5 million decrease in loan interest income, and a $465,000 net decrease in investment income.

The Company reported $45.3 million of non-interest income for the first quarter of 2021. The most important components of the first quarter non-interest income were $8.6 million from dividends from FHLB, FRB, FNBB and other, $8.2 million from mortgage lending income, $7.6 million from other service charges and fees, a $5.8 million adjustment for the increase in fair market value of marketable securities, $5.0 million from service charges on deposit accounts, and $8.0 million from other income. Included in the $8.6 million in dividends from FHLB, FRB, FNBB and other was $8.1 million in special dividends from equity investments. The Company is still currently involved in these investments; however, past performance does not guarantee future performance. The $8.0 million in other income includes a $5.1 million recovery on historic losses.

Mortgage lending income was $8.2 million for the three-month period ended March 31, 2021, compared to $10.1 million for the three-month period ended December 31, 2020. The housing market continues to benefit from the current low interest rate environment; however, the decrease in mortgage lending income from the fourth quarter of 2020 is the result of normal seasonal fluctuations and harsher winter weather in several of our markets.

Non-interest expense for the first quarter of 2021 was $72.9 million. The most important components of the first quarter non-interest expense were $42.1 million from salaries and employee benefits, $15.7 million in other expense and $9.2 million in occupancy and equipment expenses. For the first quarter of 2021, our efficiency ratio was 36.60%.

Financial Condition

Total loans receivable were $10.78 billion at March 31, 2021 compared to $11.22 billion at December 31, 2020. Total deposits were $13.51 billion at March 31, 2021 compared to $12.73 billion at December 31, 2020. Total assets were $17.24 billion at March 31, 2021 compared to $16.40 billion at December 31, 2020.

During the first quarter 2021, the Company experienced approximately $442.2 million in loan decline. Centennial CFG experienced $17.6 million of organic loan decline and had loans of $1.52 billion at March 31, 2021. Our legacy footprint experienced $400.2 million in organic loan decline and $24.4 million in PPP loan decline during the quarter.

Non-performing loans to total loans was 0.59% as of March 31, 2021 compared to 0.66% as of December 31, 2020. Non-performing assets to total assets decreased from 0.48% as of December 31, 2020 to 0.38% as of March 31, 2021. For the first quarter of 2021, net charge-offs were $2.5 million compared to net charge-offs of $2.8 million for the fourth quarter of 2020.

Non-performing loans at March 31, 2021 were $23.0 million, $35.1 million, $516,000, $2.0 million and $2.8 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $63.4 million. Non-performing assets at March 31, 2021 were $24.9 million, $36.1 million, $550,000, $2.0 million and $2.8 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $66.4 million.

The Company’s allowance for credit losses on loans was $242.9 million at March 31, 2021, or 2.25% of total loans, compared to the allowance for credit losses of $245.5 million, or 2.19% of total loans, at December 31, 2020. The Company’s allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.40%(1) at March 31, 2021. As of March 31, 2021 and December 31, 2020, the Company’s allowance for credit losses on loans was 383.47% and 331.10% of its total non-performing loans, respectively.

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

Stockholders’ equity was $2.65 billion at March 31, 2021 compared to $2.61 billion at December 31, 2020, an increase of approximately $39.4 million. The increase in stockholders’ equity was primarily associated with the $68.4 million increase in retained earnings which was partially offset by a $24.7 million decrease in accumulated other comprehensive income. Book value per common share was $16.02 at March 31, 2021 compared to $15.78 at December 31, 2020. Tangible book value per common share (non-GAAP) was $9.95(1) at March 31, 2021 compared to $9.70(1) at December 31, 2020, an increase of 10.45% 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.

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, April 15, 2021. We encourage all participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10153260/e502592c38. 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: 10153260, which will be available until April 22, 2021 at 10:59 p.m. CT (11:59 ET). Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com under “Investor Relations” for 12 months.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures--including net income (earnings), as adjusted; pre-tax net income, excluding provision for credit losses; 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 (pre-tax net income, excluding provision for credit losses); return on average assets, excluding provision for credit losses; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity excluding intangible amortization; return on average tangible common equity, as adjusted; efficiency ratio, as adjusted; net interest margin, excluding PPP loans; allowance for credit losses to total loans, excluding PPP loans; tangible book value per common share and tangible common equity to tangible assets--to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions (including the effect of the PPP loans) that management believes are not indicative of the Company’s primary business operating results. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

General

This release may contain forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors include, but are not limited to, the following:  economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment; disruptions, uncertainties and related effects on our business and operations as a result of the ongoing coronavirus (COVID-19) pandemic and measures that have been or may be implemented or imposed in response to the pandemic, including the impact on, among other things, credit quality and liquidity; the ability to identify, complete and successfully integrate new acquisitions; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations, including those in response to the COVID-19 pandemic; technological changes and cybersecurity risks; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; changes in the assumptions used in making the forward-looking statements; and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021.

Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, South Alabama and New York City. The Company’s common stock is traded through the NASDAQ Global Select Market under the symbol “HOMB.”

FOR MORE INFORMATION CONTACT:
Donna Townsell
Director of Investor Relations
Home BancShares, Inc.
(501) 328-4625

Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)

                                         
    Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,     Mar. 31,  
(In thousands)   2021     2020     2020     2020     2020  
                                         
ASSETS                                        
                                         
Cash and due from banks   $ 218,814     $ 242,173     $ 144,197     $ 185,047     $ 147,200  
Interest-bearing deposits with other banks     2,259,734       1,021,615       899,140       1,030,609       424,235  
Cash and cash equivalents     2,478,548       1,263,788       1,043,337       1,215,656       571,435  
Investment securities - available-for-sale, net of
allowance for credit losses
    2,539,123       2,473,781       2,361,900       2,238,005       2,098,000  
Loans receivable     10,778,493       11,220,721       11,691,470       11,955,743       11,384,982  
Allowance for credit losses     (242,932 )     (245,473 )     (248,224 )     (238,340 )     (228,923 )
Loans receivable, net     10,535,561       10,975,248       11,443,246       11,717,403       11,156,059  
Bank premises and equipment, net     278,620       278,614       280,364       279,498       281,795  
Foreclosed assets held for sale     3,004       4,420       4,322       6,292       8,204  
Cash value of life insurance     103,599       103,519       102,989       102,443       103,120  
Accrued interest receivable     55,495       60,528       72,599       80,274       50,295  
Deferred tax asset, net     77,145       70,249       75,167       74,333       77,110  
Goodwill     973,025       973,025       973,025       973,025       973,025  
Core deposit and other intangibles     29,307       30,728       32,149       33,569       35,055  
Other assets     166,814       164,904       160,660       174,908       177,634  
Total assets   $ 17,240,241     $ 16,398,804     $ 16,549,758     $ 16,895,406     $ 15,531,732  
                                         
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
                                         
Liabilities                                        
Deposits:                                        
Demand and non-interest-bearing   $ 3,859,722     $ 3,266,753     $ 3,207,967     $ 3,413,727     $ 2,425,036  
Savings and interest-bearing transaction accounts     8,477,208       8,212,240       8,011,200       7,970,979       7,149,644  
Time deposits     1,175,664       1,246,797       1,718,299       1,793,230       1,940,234  
Total deposits     13,512,594       12,725,790       12,937,466       13,177,936       11,514,914  
Federal funds purchased     -       -       -       -       -  
Securities sold under agreements to repurchase     162,929       168,931       158,447       162,858       126,884  
FHLB and other borrowed funds     400,000       400,000       403,428       531,432       951,436  
Accrued interest payable and other liabilities     148,999       127,999       139,485       161,095       138,479  
Subordinated debentures     370,515       370,326       370,133       369,939       369,748  
Total liabilities     14,595,037       13,793,046       14,008,959       14,403,260       13,101,461  
                                         
Stockholders' equity                                        
Common stock     1,651       1,651       1,652       1,652       1,651  
Capital surplus     1,516,286       1,520,617       1,520,103       1,518,631       1,516,151  
Retained earnings     1,107,818       1,039,370       980,699       932,856       891,498  
Accumulated other comprehensive income     19,449       44,120       38,345       39,007       20,971  
Total stockholders' equity     2,645,204       2,605,758       2,540,799       2,492,146       2,430,271  
Total liabilities and stockholders' equity   $ 17,240,241     $ 16,398,804     $ 16,549,758     $ 16,895,406     $ 15,531,732  


Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)

    Quarter Ended     Three Months Ended  
    Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,     Mar. 31,     Mar. 31,     Mar. 31,  
(In thousands)   2021     2020     2020     2020     2020     2021     2020  
                                                         
Interest income                                                        
Loans   $ 150,917     $ 153,407     $ 154,787     $ 158,996     $ 158,148     $ 150,917     $ 158,148  
Investment securities                                                        
Taxable     6,253       6,900       7,227       8,693       9,776       6,253       9,776  
Tax-exempt     5,071       4,979       4,367       3,698       3,114       5,071       3,114  
Deposits - other banks     410       270       252       211       1,116       410       1,116  
Federal funds sold     -       -       -       -       21       -       21  
Total interest income     162,651       165,556       166,633       171,598       172,175       162,651       172,175  
                                                         
Interest expense                                                        
Interest on deposits     7,705       10,596       13,200       15,116       24,198       7,705       24,198  
Federal funds purchased     -       -       -       -       13       -       13  
FHLB borrowed funds     1,875       1,917       2,235       2,656       2,698       1,875       2,698  
Securities sold under agreements to repurchase     190       208       237       260       462       190       462  
Subordinated debentures     4,793       4,810       4,823       4,899       5,079       4,793       5,079  
Total interest expense     14,563       17,531       20,495       22,931       32,450       14,563       32,450  
                                                         
Net interest income     148,088       148,025       146,138       148,667       139,725       148,088       139,725  
                                                         
Provision for credit losses     -       -       14,000       20,655       94,598       -       94,598  
                                                         
Net interest income after provision for credit
losses
    148,088       148,025       132,138       128,012       45,127       148,088       45,127  
                                                         
Non-interest income                                                        
Service charges on deposit accounts     5,002       5,544       4,910       4,296       6,631       5,002       6,631  
Other service charges and fees     7,608       8,425       8,539       7,666       6,056       7,608       6,056  
Trust fees     522       420       378       397       438       522       438  
Mortgage lending income     8,167       10,071       10,177       6,196       2,621       8,167       2,621  
Insurance commissions     492       366       271       533       678       492       678  
Increase in cash value of life insurance     502       534       548       558       560       502       560  
Dividends from FHLB, FRB, FNBB & other     8,609       967       3,433       230       7,842       8,609       7,842  
Gain on SBA loans     -       304       -       -       341       -       341  
(Loss) gain on branches, equipment and
other assets, net
    (29 )     217       (27 )     54       82       (29 )     82  
Gain on OREO, net     401       150       470       235       277       401       277  
Gain on securities, net     219       -       -       -       -       219       -  
Fair value adjustment for marketable securities     5,782       4,271       (1,350 )     919       (5,818 )     5,782       (5,818 )
Other income     8,001       2,616       2,602       3,939       3,219       8,001       3,219  
Total non-interest income     45,276       33,885       29,951       25,023       22,927       45,276       22,927  
                                                         
Non-interest expense                                                        
Salaries and employee benefits     42,059       43,022       41,511       40,088       39,329       42,059       39,329  
Occupancy and equipment     9,237       9,801       9,566       10,172       8,873       9,237       8,873  
Data processing expense     5,870       5,171       4,921       4,614       4,326       5,870       4,326  
Other operating expenses     15,700       16,247       15,714       16,084       17,946       15,700       17,946  
Total non-interest expense     72,866       74,241       71,712       70,958       70,474       72,866       70,474  
                                                         
Income (loss) before income taxes     120,498       107,669       90,377       82,077       (2,420 )     120,498       (2,420 )
Income tax expense (benefit)     28,896       25,875       21,057       19,250       (2,927 )     28,896       (2,927 )
Net income   $ 91,602     $ 81,794     $ 69,320     $ 62,827     $ 507     $ 91,602     $ 507  


Home BancShares, Inc.
Selected Financial Information
(Unaudited)

    Quarter Ended     Three Months
Ended
 
    Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,     Mar. 31,     Mar. 31,     Mar. 31,  
(Dollars and shares in thousands, except per share data)   2021     2020     2020     2020     2020     2021     2020  
                                                         
PER SHARE DATA                                                        
                                                         
Diluted earnings per common share   $ 0.55     $ 0.50     $ 0.42     $ 0.38     $ -     $ 0.55     $ -  
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, provision for credit losses, branch write-off
expense, outsourced special project expense & merger and
acquisition expenses (non-GAAP)(1)
    0.47       0.48       0.47       0.47       0.43       0.47       0.43  
Basic earnings per common share     0.55       0.50       0.42       0.38       -       0.55       -  
Dividends per share - common     0.14       0.14       0.13       0.13       0.13       0.14       0.13  
Book value per common share     16.02       15.78       15.38       15.09       14.72       16.02       14.72  
Tangible book value per common share (non-GAAP)(1)     9.95       9.70       9.30       8.99       8.61       9.95       8.61  
                                                         
STOCK INFORMATION                                                        
                                                         
Average common shares outstanding     165,257       165,119       165,200       165,163       166,014       165,257       166,014  
Average diluted shares outstanding     165,446       165,119       165,200       165,163       166,014       165,446       166,014  
End of period common shares outstanding     165,141       165,095       165,163       165,206       165,148       165,141       165,148  
                                                         
ANNUALIZED PERFORMANCE METRICS                                                        
                                                         
Return on average assets     2.22 %     1.97 %     1.66 %     1.55 %     0.01 %     2.22 %     0.01 %
Return on average assets excluding fair value adjustment
for marketable securities, special dividend from equity
investment, gain on securities, recoveries on historic
losses, provision for credit losses, branch write-off
expense, outsourced special project expense & merger
and acquisition expenses: (ROA, as adjusted) (non-GAAP)(1)
    1.88 %     1.90 %     1.88 %     1.93 %     1.88 %     1.88 %     1.88 %
Return on average assets excluding intangible amortization
(non-GAAP)(1)
    2.39 %     2.13 %     1.80 %     1.68 %     0.05 %     2.39 %     0.05 %
Return on average common equity     14.15 %     12.72 %     10.97 %     10.27 %     0.08 %     14.15 %     0.08 %
Return on average common equity excluding fair value
adjustment for marketable securities, special dividend
from equity investment, gain on securities, recoveries
on historic losses, provision for credit losses, branch
write-off expense, outsourced special project expense
& merger and acquisition expenses: (ROE, as adjusted)
(non-GAAP)(1)
    11.96 %     12.23 %     12.39 %     12.77 %     11.48 %     11.96 %     11.48 %
Return on average tangible common equity (non-GAAP)(1)     22.90 %     20.96 %     18.29 %     17.40 %     0.14 %     22.90 %     0.14 %
Return on average tangible common equity excluding
intangible amortization (non-GAAP)(1)
    23.16 %     21.22 %     18.56 %     17.70 %     0.44 %     23.16 %     0.44 %
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, provision for credit losses,
branch write-off expense, outsourced special project
expense & merger and acquisition expenses:
(ROTCE, as adjusted) (non-GAAP)(1)
    19.35 %     20.15 %     20.66 %     21.63 %     19.22 %     19.35 %     19.22 %

(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     Three Months Ended  
(Dollars and shares in thousands,   Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,     Mar. 31,     Mar. 31,     Mar. 31,  
except per share data)   2021     2020     2020     2020     2020     2021     2020  
                                                         
                                                         
Efficiency ratio     36.60 %     39.64 %     39.56 %     39.67 %     42.08 %     36.60 %     42.08 %
Efficiency ratio, as adjusted (non-GAAP)(1)     40.67 %     40.67 %     40.08 %     39.38 %     41.37 %     40.67 %     41.37 %
Net interest margin - FTE     4.02 %     4.00 %     3.92 %     4.11 %     4.22 %     4.02 %     4.22 %
Net interest margin - FTE, excluding PPP loans
(non-GAAP)(1)
    3.87 %     3.97 %     3.98 %     4.16 %     4.22 %     3.87 %     4.22 %
Fully taxable equivalent adjustment   $ 1,857     $ 1,778     $ 1,576     $ 1,434     $ 1,227     $ 1,857     $ 1,227  
Total revenue (net)     193,364       181,910       176,089       173,690       162,652       193,364       162,652  
Pre-tax net income, excluding provision for credit
losses (PPNR) (non-GAAP)(1)
    120,498       107,669       104,377       102,732       92,178       120,498       92,178  
Pre-tax net income to total revenue (net)     62.32 %     59.19 %     51.32 %     47.25 %     -1.49 %     62.32 %     -1.49 %
P5NR (Pre-tax, pre-provision, profit percentage)
(PPNR to total revenue (net)) (non-GAAP)(1)
    62.32 %     59.19 %     59.28 %     59.15 %     56.67 %     62.32 %     56.67 %
Net income, excluding provision for credit losses     91,602       81,794       79,661       78,084       70,382       91,602       70,382  
Return on average assets (pre-tax net income,
excluding provision for credit losses) (non-GAAP)(1)
    2.92 %     2.60 %     2.50 %     2.53 %     2.45 %     2.92 %     2.45 %
Return on average assets, excluding provision
for credit losses (non-GAAP)(1)
    2.22 %     1.97 %     1.91 %     1.92 %     1.87 %     2.22 %     1.87 %
Total purchase accounting accretion     5,485       5,736       6,957       7,036       7,647       5,485       7,647  
Average purchase accounting loan discounts     43,940       49,563       55,835       62,822       69,365       43,940       69,365  
                                                         
                                                         
OTHER OPERATING EXPENSES                                                        
                                                         
Advertising   $ 1,046     $ 1,076     $ 902     $ 795     $ 1,226     $ 1,046     $ 1,226  
Merger and acquisition expenses     -       -       -       -       711       -       711  
Amortization of intangibles     1,421       1,421       1,420       1,486       1,517       1,421       1,517  
Electronic banking expense     2,238       2,282       2,426       2,054       1,715       2,238       1,715  
Directors' fees     383       359       429       412       424       383       424  
Due from bank service charges     249       254       259       239       223       249       223  
FDIC and state assessment     1,363       1,493       1,607       1,846       1,548       1,363       1,548  
Insurance     781       795       766       711       746       781       746  
Legal and accounting     846       790       1,235       1,278       919       846       919  
Other professional fees     1,613       1,528       1,661       1,735       3,226       1,613       3,226  
Operating supplies     487       440       460       553       535       487       535  
Postage     338       315       328       313       327       338       327  
Telephone     346       347       321       310       324       346       324  
Other expense     4,589       5,147       3,900       4,352       4,505       4,589       4,505  
                                                         
Total other operating expenses   $ 15,700     $ 16,247     $ 15,714     $ 16,084     $ 17,946     $ 15,700     $ 17,946  

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

Home BancShares, Inc.
Selected Financial Information
(Unaudited)

    Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,     Mar. 31,  
(Dollars in thousands)   2021     2020     2020     2020     2020  
                                         
BALANCE SHEET RATIOS                                        
                                         
Total loans to total deposits     79.77 %     88.17 %     90.37 %     90.73 %     98.87 %
Common equity to assets     15.34 %     15.89 %     15.35 %     14.75 %     15.65 %
Tangible common equity to tangible assets (non-GAAP)(1)     10.12 %     10.41 %     9.88 %     9.35 %     9.79 %
                                         
LOANS RECEIVABLE                                        
                                         
Real estate                                        
Commercial real estate loans                                        
Non-farm/non-residential   $ 4,289,142     $ 4,429,060     $ 4,342,141     $ 4,325,795     $ 4,357,007  
Construction/land development     1,612,973       1,562,298       1,748,928       1,818,151       1,892,394  
Agricultural     113,382       114,431       89,476       105,554       89,630  
Residential real estate loans                                        
Residential 1-4 family     1,437,546       1,536,257       1,665,628       1,730,716       1,775,610  
Multifamily residential     377,661       536,538       491,380       482,635       411,960  
Total real estate     7,830,704       8,178,584       8,337,553       8,462,851       8,526,601  
Consumer     839,819       864,690       883,568       851,344       852,174  
Commercial and industrial     1,794,787       1,896,442       2,161,818       2,228,816       1,759,752  
Agricultural     65,017       66,869       85,365       80,023       64,582  
Other     248,166       214,136       223,166       332,709       181,873  
Loans receivable   $ 10,778,493     $ 11,220,721     $ 11,691,470     $ 11,955,743     $ 11,384,982  
                                         
Paycheck Protection Program (PPP) loans (included in total
loans receivable)
    667,316       691,747       848,745       848,628       -  
                                         
ALLOWANCE FOR CREDIT LOSSES                                        
                                         
Balance, beginning of period   $ 245,473     $ 248,224     $ 238,340     $ 228,923     $ 102,122  
Impact of adopting ASC 326     -       -       -       -       43,988  
Allowance for credit losses on acquired loans     -       -       -       -       357  
Loans charged off     3,047       3,040       4,599       2,582       4,265  
Recoveries of loans previously charged off     506       289       483       558       740  
Net loans charged off     2,541       2,751       4,116       2,024       3,525  
Provision for credit losses on loans     -       -       14,000       11,441       85,981  
Balance, end of period   $ 242,932     $ 245,473     $ 248,224     $ 238,340     $ 228,923  
                                         
Net charge-offs to average total loans     0.09 %     0.10 %     0.14 %     0.07 %     0.13 %
Allowance for credit losses to total loans     2.25 %     2.19 %     2.12 %     1.99 %     2.01 %
Allowance for credit losses to total loans, excluding PPP loans     2.40 %     2.33 %     2.29 %     2.15 %     2.01 %
                                         
NON-PERFORMING ASSETS                                        
                                         
Non-performing loans                                        
Non-accrual loans   $ 59,142     $ 64,528     $ 65,148     $ 52,074     $ 52,131  
Loans past due 90 days or more     4,209       9,610       8,635       7,824       7,760  
Total non-performing loans     63,351       74,138       73,783       59,898       59,891  
Other non-performing assets                                        
Foreclosed assets held for sale, net     3,004       4,420       4,322       6,292       8,204  
Other non-performing assets     -       -       247       247       447  
Total other non-performing assets     3,004       4,420       4,569       6,539       8,651  
Total non-performing assets   $ 66,355     $ 78,558     $ 78,352     $ 66,437     $ 68,542  
                                         
Allowance for credit losses for loans to non-performing loans     383.47 %     331.10 %     336.42 %     397.91 %     382.23 %
Non-performing loans to total loans     0.59 %     0.66 %     0.63 %     0.50 %     0.53 %
Non-performing assets to total assets     0.38 %     0.48 %     0.47 %     0.39 %     0.44 %

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


Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)

    Three Months Ended  
    March 31, 2021     December 31, 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   $ 1,610,463     $ 410       0.10 %   $ 1,029,047     $ 270       0.10 %
Federal funds sold     119       -       0.00 %     5       -       0.00 %
Investment securities - taxable     1,637,061       6,253       1.55 %     1,615,214       6,900       1.70 %
Investment securities - non-taxable - FTE     848,158       6,732       3.22 %     798,402       6,550       3.26 %
Loans receivable - FTE     11,023,139       151,113       5.56 %     11,457,713       153,614       5.33 %
Total interest-earning assets     15,118,940       164,508       4.41 %     14,900,381       167,334       4.47 %
Non-earning assets     1,599,950                       1,592,685                  
Total assets   $ 16,718,890                     $ 16,493,066                  
                                                 
LIABILITIES AND SHAREHOLDERS' EQUITY                                                
Liabilities                                                
Interest-bearing liabilities                                                
Savings and interest-bearing transaction
accounts
  $ 8,338,791     $ 4,716       0.23 %   $ 8,109,111     $ 5,813       0.29 %
Time deposits     1,209,431       2,989       1.00 %     1,483,049       4,783       1.28 %
Total interest-bearing deposits     9,548,222       7,705       0.33 %     9,592,160       10,596       0.44 %
Federal funds purchased     -       -       0.00 %     -       -       0.00 %
Securities sold under agreement to repurchase     159,697       190       0.48 %     156,198       208       0.53 %
FHLB borrowed funds     400,000       1,875       1.90 %     400,001       1,917       1.91 %
Subordinated debentures     370,421       4,793       5.25 %     370,232       4,810       5.17 %
Total interest-bearing liabilities     10,478,340       14,563       0.56 %     10,518,591       17,531       0.66 %
Non-interest bearing liabilities                                                
Non-interest bearing deposits     3,480,050                       3,279,708                  
Other liabilities     134,882                       137,516                  
Total liabilities     14,093,272                       13,935,815                  
Shareholders' equity     2,625,618                       2,557,251                  
Total liabilities and shareholders' equity   $ 16,718,890                     $ 16,493,066                  
Net interest spread                     3.85 %                     3.81 %
Net interest income and margin - FTE           $ 149,945       4.02 %           $ 149,803       4.00 %


Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)

    Three Months Ended  
    March 31, 2021     March 31, 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   $ 1,610,463     $ 410       0.10 %   $ 331,038     $ 1,116       1.36 %
Federal funds sold     119       -       0.00 %     5,218       21       1.62 %
Investment securities - taxable     1,637,061       6,253       1.55 %     1,710,288       9,776       2.30 %
Investment securities - non-taxable - FTE     848,158       6,732       3.22 %     374,198       4,090       4.40 %
Loans receivable - FTE     11,023,139       151,113       5.56 %     11,007,958       158,399       5.79 %
Total interest-earning assets     15,118,940       164,508       4.41 %     13,428,700       173,402       5.19 %
Non-earning assets     1,599,950                       1,704,775                  
Total assets   $ 16,718,890                     $ 15,133,475                  
                                                 
LIABILITIES AND SHAREHOLDERS' EQUITY                                                
Liabilities                                                
Interest-bearing liabilities                                                
Savings and interest-bearing transaction
accounts
  $ 8,338,791     $ 4,716       0.23 %   $ 7,041,303     $ 15,803       0.90 %
Time deposits     1,209,431       2,989       1.00 %     1,943,721       8,395       1.74 %
Total interest-bearing deposits     9,548,222       7,705       0.33 %     8,985,024       24,198       1.08 %
Federal funds purchased     -       -       0.00 %     6,264       13       0.83 %
Securities sold under agreement to repurchase     159,697       190       0.48 %     138,180       462       1.34 %
FHLB borrowed funds     400,000       1,875       1.90 %     623,525       2,698       1.74 %
Subordinated debentures     370,421       4,793       5.25 %     369,652       5,079       5.53 %
Total interest-bearing liabilities     10,478,340       14,563       0.56 %     10,122,645       32,450       1.29 %
Non-interest bearing liabilities                                                
Non-interest bearing deposits     3,480,050                       2,410,583                  
Other liabilities     134,882                       119,143                  
Total liabilities     14,093,272                       12,652,371                  
Shareholders' equity     2,625,618                       2,481,104                  
Total liabilities and shareholders' equity   $ 16,718,890                     $ 15,133,475                  
Net interest spread                     3.85 %                     3.90 %
Net interest income and margin - FTE           $ 149,945       4.02 %           $ 140,952       4.22 %


Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)

    Quarter Ended     Three Months Ended  
(Dollars and shares in thousands,   Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,     Mar. 31,     Mar. 31,         Mar. 31,  
except per share data)   2021     2020     2020     2020     2020     2021         2020  
                                                             
EARNINGS, AS ADJUSTED                                                            
                                                             
GAAP net income available to common shareholders (A)   $ 91,602     $ 81,794     $ 69,320     $ 62,827     $ 507     $ 91,602         $ 507  
Pre-tax adjustments                                                            
Fair value adjustment for marketable securities     (5,782 )     (4,271 )     1,350       (919 )     5,818       (5,782 )         5,818  
Special dividend from equity investment     (8,073 )     -       (3,181 )     -       (7,004 )     (8,073 )         (7,004 )
Gain on securities     (219 )     -       -       -       -       (219 )         -  
Recoveries on historic losses     (5,107 )     -       -       -       -       (5,107 )         -  
Provision for credit losses     -       -       14,000       20,655       94,598       -           94,598  
Branch write-off expense     -       -       -       981       -       -           -  
Outsourced special project expense     -       -       -       -       1,092       -           1,092  
Merger and acquisition expenses     -       -       -       -       711       -           711  
Total pre-tax adjustments     (19,181 )     (4,271 )     12,169       20,717       95,215       (19,181 )         95,215  
Tax-effect of adjustments     (5,013 )     (1,116 )     3,181       5,414       24,884       (5,013 )         24,884  
Total adjustments after-tax (B)     (14,168 )     (3,155 )     8,988       15,303       70,331       (14,168 )         70,331  
Earnings, as adjusted (C)   $ 77,434     $ 78,639     $ 78,308     $ 78,130     $ 70,838     $ 77,434         $ 70,838  
                                                             
Average diluted shares outstanding (D)     165,446       165,119       165,200       165,163       166,014       165,446           166,014  
                                                             
GAAP diluted earnings per share: (A/D)   $ 0.55     $ 0.50     $ 0.42     $ 0.38     $ -     $ 0.55         $ -  
Adjustments after-tax: (B/D)     (0.08 )     (0.02 )     0.05       0.09       0.43       (0.08 )         0.43  
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, provision for credit losses,
branch write-off expense, outsourced special project
expense & merger and acquisition expenses: (C/D)
  $ 0.47     $ 0.48     $ 0.47     $ 0.47     $ 0.43     $ 0.47         $ 0.43  
                                                             
ANNUALIZED RETURN ON AVERAGE ASSETS                                                            
                                                             
Return on average assets: (A/G)     2.22 %     1.97 %     1.66 %     1.55 %     0.01 %     2.22 %         0.01 %
Return on average assets excluding fair value adjustment for
marketable securities, special dividend from equity
investment, gain on securities, recoveries on historic losses,
provision for credit losses, branch write-off expense,
outsourced special project expense & merger and
acquisition expenses: (ROA, as adjusted) ((A+F)/G)
    1.88 %     1.90 %     1.88 %     1.93 %     1.88 %     1.88 %         1.88 %
Return on average assets (pre-tax net income, excluding
provision for credit losses): (B/G)
    2.92 %     2.60 %     2.50 %     2.53 %     2.45 %     2.92 %         2.45 %
Return on average assets, excluding provision for credit
losses: (C/G)
    2.22 %     1.97 %     1.91 %     1.92 %     1.87 %     2.22 %         1.87 %
Return on average assets excluding intangible
amortization: ((A+E)/(G-H))
    2.39 %     2.13 %     1.80 %     1.68 %     0.05 %     2.39 %         0.05 %
                                                             
GAAP net income available to common shareholders (A)   $ 91,602     $ 81,794     $ 69,320     $ 62,827     $ 507     $ 91,602         $ 507  
Pre-tax net income, excluding provision for credit losses (B)     120,498       107,669       104,377       102,732       92,178       120,498           92,178  
Net income, excluding provision for credit losses (C)     91,602       81,794       79,661       78,084       70,382       91,602           70,382  
Amortization of intangibles (D)     1,421       1,421       1,420       1,486       1,517       1,421           1,517  
Amortization of intangibles after-tax (E)     1,049       1,049       1,049       1,098       1,121       1,049           1,121  
Adjustments after-tax (F)     (14,168 )     (3,155 )     8,988       15,303       70,331       (14,168 )         70,331  
Average assets (G)     16,718,890       16,493,066       16,594,495       16,319,206       15,133,475       16,718,890           15,133,475  
Average goodwill, core deposits & other intangible
assets (H)
    1,003,011       1,004,432       1,005,864       1,007,307       999,004       1,003,011           999,004  


Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)

    Quarter Ended     Three Months Ended  
    Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,     Mar. 31,     Mar. 31,     Mar. 31,  
(Dollars and shares in thousands, except per share data)   2021     2020     2020     2020     2020     2021     2020  
                                                         
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY                                                        
                                                         
Return on average common equity: (A/D)     14.15 %     12.72 %     10.97 %     10.27 %     0.08 %     14.15 %     0.08 %
Return on average common equity excluding fair value adjustment for
marketable securities, special dividend from equity investment,
gain on securities, recoveries on historic losses, provision for credit
losses, branch write-off expense, outsourced special project expense
& merger and acquisition expenses: (ROE, as adjusted) ((A+C)/D)
    11.96 %     12.23 %     12.39 %     12.77 %     11.48 %     11.96 %     11.48 %
Return on average tangible common equity: (A/(D-E))     22.90 %     20.96 %     18.29 %     17.40 %     0.14 %     22.90 %     0.14 %
Return on average tangible common equity excluding intangible
amortization: (B/(D-E))
    23.16 %     21.22 %     18.56 %     17.70 %     0.44 %     23.16 %     0.44 %
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, provision for credit losses, branch write-off expense,
outsourced special project expense & merger and acquisition
expenses: (ROTCE, as adjusted) ((A+C)/(D-E))
    19.35 %     20.15 %     20.66 %     21.63 %     19.22 %     19.35 %     19.22 %
                                                         
GAAP net income available to common shareholders (A)   $ 91,602     $ 81,794     $ 69,320     $ 62,827     $ 507     $ 91,602     $ 507  
Earnings excluding intangible amortization (B)     92,651       82,843       70,369       63,925       1,628       92,651       1,628  
Adjustments after-tax (C)     (14,168 )     (3,155 )     8,988       15,303       70,331       (14,168 )     70,331  
Average common equity (D)     2,625,618       2,557,251       2,513,792       2,459,941       2,481,104       2,625,618       2,481,104  
Average goodwill, core deposits & other intangible assets (E)     1,003,011       1,004,432       1,005,864       1,007,307       999,004       1,003,011       999,004  
                                                         
EFFICIENCY RATIO                                                        
                                                         
Efficiency ratio: ((C-E)/(A+B+D))     36.60 %     39.64 %     39.56 %     39.67 %     42.08 %     36.60 %     42.08 %
Efficiency ratio, as adjusted: ((C-E-G)/(A+B+D-F))     40.67 %     40.67 %     40.08 %     39.38 %     41.37 %     40.67 %     41.37 %
                                                         
Net interest income (A)   $ 148,088     $ 148,025     $ 146,138     $ 148,667     $ 139,725     $ 148,088     $ 139,725  
Non-interest income (B)     45,276       33,885       29,951       25,023       22,927       45,276       22,927  
Non-interest expense (C)     72,866       74,241       71,712       70,958       70,474       72,866       70,474  
Fully taxable equivalent adjustment (D)     1,857       1,778       1,576       1,434       1,227       1,857       1,227  
Amortization of intangibles (E)     1,421       1,421       1,420       1,486       1,517       1,421       1,517  
                                                         
Adjustments:                                                        
Non-interest income:                                                        
Fair value adjustment for marketable securities   $ 5,782     $ 4,271     $ (1,350 )   $ 919     $ (5,818 )   $ 5,782     $ (5,818 )
Gain (loss) on OREO     401       150       470       235       277       401       277  
Gain (loss) on branches, equipment and other assets, net     (29 )     217       (27 )     54       82       (29 )     82  
Special dividend from equity investment     8,073       -       3,181       -       7,004       8,073       7,004  
Gain (loss) on securities     219       -       -       -       -       219       -  
Recoveries on historic losses     5,107       -       -       -       -       5,107       -  
Total non-interest income adjustments (F)   $ 19,553     $ 4,638     $ 2,274     $ 1,208     $ 1,545     $ 19,553     $ 1,545  
                                                         
Non-interest expense:                                                        
Branch write-off expense   $ -     $ -     $ -     $ 981     $ -     $ -     $ -  
FDIC Small Bank Assessment Credit     -       -       -       -       -       -       -  
Merger Expenses     -       -       -       -       711       -       711  
Hurricane damage expense     -       -       -       -       -       -       -  
Outsourced special project expense     -       -       -       -       1,092       -       1,092  
Total non-interest expense adjustments (G)   $ -     $ -     $ -     $ 981     $ 1,803     $ -     $ 1,803  
                                                         
ANNUALIZED NET INTEREST MARGIN                                                        
                                                         
Net interest margin: A/C     4.02 %     4.00 %     3.92 %     4.11 %     4.22 %     4.02 %     4.22 %
Net interest margin, excluding PPP loans: B/D     3.87 %     3.97 %     3.98 %     4.16 %     4.22 %     3.87 %     4.22 %
                                                         
Net interest income - FTE (A)   $ 149,945     $ 149,803     $ 147,714     $ 150,101     $ 140,952     $ 149,945     $ 140,952  
PPP loan interest & discount accretion income     11,878       8,841       5,943       4,450       -       11,878       -  
Net interest income - FTE, excluding PPP loans (B)   $ 138,067     $ 140,962     $ 141,771     $ 145,651     $ 140,952     $ 138,067     $ 140,952  
                                                         
Average interest-earning assets (C)   $ 15,118,940     $ 14,900,381     $ 14,975,146     $ 14,678,465     $ 13,428,700     $ 15,118,940     $ 13,428,700  
Average PPP loans     633,790       775,861       821,977       585,946       -       633,790       -  
Average interest-earning assets, excluding PPP loans (D)   $ 14,485,150     $ 14,124,520     $ 14,153,169     $ 14,092,519     $ 13,428,700     $ 14,485,150     $ 13,428,700  


Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)

    Quarter Ended     Three Months
Ended
 
(Dollars and shares in thousands,   Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,     Mar. 31,     Mar. 31,         Mar. 31,  
except per share data)   2021     2020     2020     2020     2020     2021         2020  
                                                             
Pre-tax net income   $ 120,498     $ 107,669     $ 90,377     $ 82,077     $ (2,420 )   $ 120,498         $ (2,420 )
Provision for credit losses     -       -       14,000       20,655       94,598       -           94,598  
Pre-tax net income, excluding provision for credit
losses (PPNR) (A)
  $ 120,498     $ 107,669     $ 104,377     $ 102,732     $ 92,178     $ 120,498         $ 92,178  
                                                             
Total revenue (net) (B)     193,364       181,910       176,089       173,690       162,652       193,364           162,652  
                                                             
Pre-tax net income to total revenue (net)     62.32 %     59.19 %     51.32 %     47.25 %     -1.49 %     62.32 %         -1.49 %
P5NR (Pre-tax, pre-provision, profit percentage)
(PPNR to total revenue (net))
    62.32 %     59.19 %     59.28 %     59.15 %     56.67 %     62.32 %         56.67 %
                                                             
                                                             
    Quarter Ended                      
    Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,     Mar. 31,                      
(Dollars in thousands)   2021     2020     2020     2020     2020                      
                                                             
TANGIBLE BOOK VALUE PER
COMMON SHARE
                                                           
                                                             
Book value per common share: (A/B)   $ 16.02     $ 15.78     $ 15.38     $ 15.09     $ 14.72                      
Tangible book value per common share:
((A-C-D)/B)
    9.95       9.70       9.30       8.99       8.61                      
                                                             
Total stockholders' equity (A)   $ 2,645,204     $ 2,605,758     $ 2,540,799     $ 2,492,146     $ 2,430,271                      
End of period common shares outstanding (B)     165,141       165,095       165,163       165,206       165,148                      
Goodwill (C)     973,025       973,025       973,025       973,025       973,025                      
Core deposit and other intangibles (D)     29,307       30,728       32,149       33,569       35,055                      
                                                             
                                                             
TANGIBLE COMMON EQUITY
TO TANGIBLE ASSETS
                                                           
                                                             
Equity to assets: (B/A)     15.34 %     15.89 %     15.35 %     14.75 %     15.65 %                    
Tangible common equity to tangible assets:
((B-C-D)/(A-C-D))
    10.12 %     10.41 %     9.88 %     9.35 %     9.79 %                    
                                                             
Total assets (A)   $ 17,240,241     $ 16,398,804     $ 16,549,758     $ 16,895,406     $ 15,531,732                      
Total stockholders' equity (B)     2,645,204       2,605,758       2,540,799       2,492,146       2,430,271                      
Goodwill (C)     973,025       973,025       973,025       973,025       973,025                      
Core deposit and other intangibles (D)     29,307       30,728       32,149       33,569       35,055                      

 


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Source: Home BancShares, Inc.