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HOMB Delivers Strong Q3 Results, While Shifting Into Hurricane Mode
来源: Nasdaq GlobeNewswire / 16 10月 2024 17:15:01 America/New_York
CONWAY, Ark., Oct. 16, 2024 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NYSE: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.
Quarterly Highlights
Metric Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Net income $100.0 million $101.5 million $100.1 million $86.2 million $98.5 million Net income, as adjusted (non-GAAP)(1) $99.0 million $103.9 million $99.2 million $92.2 million $94.7 million Total revenue (net) $258.0 million $254.6 million $246.4 million $245.6 million $245.4 million Income before income taxes $129.1 million $133.4 million $130.4 million $112.8 million $129.3 million Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) $148.0 million $141.4 million $134.9 million $118.4 million $130.6 million PPNR, as adjusted (non-GAAP)(1) $146.6 million $141.9 million $133.7 million $126.4 million $125.7 million Pre-tax net income to total revenue (net) 50.03 % 52.40 % 52.92 % 45.92 % 52.70 % Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1) 49.49 % 52.59 % 52.45 % 49.16 % 50.72 % P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) 57.35 % 55.54 % 54.75 % 48.22 % 53.23 % P5NR, as adjusted (non-GAAP)(1) 56.81 % 55.73 % 54.28 % 51.46 % 51.25 % ROA 1.74 % 1.79 % 1.78 % 1.55 % 1.78 % ROA, as adjusted (non-GAAP)(1) 1.72 % 1.83 % 1.76 % 1.66 % 1.72 % NIM 4.28 % 4.27 % 4.13 % 4.17 % 4.19 % Purchase accounting accretion $1.9 million $1.9 million $2.8 million $2.3 million $2.4 million ROE 10.23 % 10.73 % 10.64 % 9.36 % 10.65 % ROE, as adjusted (non-GAAP)(1) 10.12 % 10.98 % 10.54 % 10.00 % 10.25 % ROTCE (non-GAAP)(1) 16.26 % 17.29 % 17.22 % 15.49 % 17.62 % ROTCE, as adjusted (non-GAAP)(1) 16.09 % 17.69 % 17.07 % 16.56 % 16.95 % Diluted earnings per share $ 0.50 $ 0.51 $ 0.50 $ 0.43 $ 0.49 Diluted earnings per share, as adjusted (non-GAAP)(1) $ 0.50 $ 0.52 $ 0.49 $ 0.46 $ 0.47 Non-performing assets to total assets 0.63 % 0.56 % 0.48 % 0.42 % 0.42 % Common equity tier 1 capital 14.7 % 14.4 % 14.3 % 14.2 % 14.0 % Leverage 12.5 % 12.3 % 12.3 % 12.4 % 12.4 % Tier 1 capital 14.7 % 14.4 % 14.3 % 14.2 % 14.0 % Total risk-based capital 18.3 % 18.0 % 17.9 % 17.8 % 17.6 % Allowance for credit losses to total loans 2.11 % 2.00 % 2.00 % 2.00 % 2.00 % Book value per share $ 19.91 $ 19.30 $ 18.98 $ 18.81 $ 18.06 Tangible book value per share (non-GAAP)(1) 12.67 12.08 11.79 11.63 10.90 (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
“HOMB was on track to meet or beat expectations in the third quarter when Hurricane Helene hit with three business days left in the quarter. I’m proud of the strength of our balance sheet which allowed us to increase our already strong loan loss reserve amount in order to prepare for what is to come as a result of recent hurricanes in the southeast,” said John Allison, Chairman and CEO of HOMB.
“Our quarter was shaping up very nicely, and I was looking for $0.55 to $0.56 diluted earnings per share and an ROA of 1.96%. But that all changed almost overnight due to circumstances beyond our control. Despite this event, we still had a very strong quarter with strong revenue and PPNR, $0.50 diluted earnings per share and a 1.74% return on average assets,” Allison continued.
Liquidity and Funding Sources
At September 30, 2024, the Company held $2.50 billion in net available internal liquidity. This balance consisted of $1.51 billion in unpledged investment securities which could be used for additional secured borrowing capacity, $718.9 million in cash with the Federal Reserve Bank (FRB) and $270.4 million in other liquid cash accounts.
Consistent with the Company’s practice of maintaining access to significant external liquidity, the Company had $3.15 billion in net available external liquidity as of September 30, 2024. This included $4.80 billion in available liquidity with the Federal Home Loan Bank (FHLB), of which $1.84 billion has been drawn upon in the ordinary course of business, resulting in $2.97 billion in net available liquidity with the FHLB as of September 30, 2024. The $1.84 billion consisted of $600.0 million in outstanding FHLB advances and $1.24 billion used for pledging purposes. The Company also had access to approximately $785.6 million in liquidity with the FRB as of September 30, 2024, of which $700.0 million has been drawn upon in the ordinary course of business from the Bank Term Funding Program (BTFP), resulting in $85.6 million in net available liquidity with the FRB as of September 30, 2024. As of September 30, 2024, the Company also had access to $55.0 million from First National Bankers’ Bank (FNBB) and $45.0 million from other various external sources.
Overall, the Company had $5.65 billion in net available liquidity as of September 30, 2024, which consisted of $2.50 billion of net available internal liquidity and $3.15 billion in net available external liquidity. Details on the Company’s available liquidity as of September 30, 2024 are included below.
(In thousands) Total Available Amount Used Net Availability Internal Sources Unpledged investment securities (market value) $ 1,509,661 $ — $ 1,509,661 Cash at FRB 718,881 — 718,881 Other liquid cash accounts 270,411 — 270,411 Total Internal Liquidity 2,498,953 — 2,498,953 External Sources FHLB 4,804,845 1,838,171 2,966,674 FRB Discount Window 85,624 — 85,624 BTFP (par value) 700,000 700,000 — FNBB 55,000 — 55,000 Other 45,000 — 45,000 Total External Liquidity 5,690,469 2,538,171 3,152,298 Total Available Liquidity $ 8,189,422 $ 2,538,171 $ 5,651,251 The Company has continued to limit its exposure to uninsured deposits. As of September 30, 2024, the Company held approximately $8.18 billion in uninsured deposits of which $766.2 million were intercompany subsidiary deposit balances and $2.81 billion were collateralized deposits, for a net position of $4.61 billion. This represents approximately 27.6% of total deposits. As of September 30, 2024, net available liquidity exceeded uninsured and uncollateralized deposits by $1.04 billion.
(in thousands) As of
September 30, 2024Uninsured Deposits $ 8,179,825 Intercompany Subsidiary and Affiliate Balances 766,247 Collateralized Deposits 2,806,436 Net Uninsured Position $ 4,607,142 Total Available Liquidity $ 5,651,251 Net Uninsured Position 4,607,142 Net Available Liquidity in Excess of Uninsured Deposits $ 1,044,109 In the event the Company’s $4.61 billion net position of uninsured deposits had been called by depositors on the first day of the third quarter of 2024 and the Company utilized available funding, which remained outstanding during the entire quarter, the Company estimates that interest expense would have increased by approximately $72.3 million for the quarter ended September 30, 2024. The outflow of deposits could have been funded through available sources of liquidity without selling our investment securities. In this event, based on the Company’s profitability level for the quarter ended September 30, 2024, the Company estimates that it would still have achieved return on average assets (ROA) of 1.26% for the quarter ended September 30, 2024.
Operating Highlights
Net income for the three-month period ended September 30, 2024 was $100.0 million, or $0.50 diluted earnings per share. When adjusting for non-fundamental items, net income and diluted earnings per share on an as-adjusted basis (non-GAAP), were $99.0 million(1) and $0.50 per share(1), respectively, for the three months ended September 30, 2024.
During the quarter ended September 30, 2024, the Company recorded $18.9 million in credit loss expense. The $18.9 million of credit loss expense includes $18.2 million in provision for credit losses on loans. Of the $18.2 million provision for credit losses on loans recorded, $16.7 million was an additional hurricane reserve for loans located in the FEMA disaster areas impacted by Hurricane Helene, which made landfall during the quarter. The additional hurricane reserve had a six cent impact to diluted earnings per share for the quarter. The remaining portion of the provision was related to loan growth. The Company also recorded a $1.0 million provision for credit losses on unfunded commitments due to an increase in the balance of unfunded commitments. In addition, we recorded a $330,000 recovery of credit losses on available for sale investments due to an improvement in the unrealized losses for one of our subordinated debt investments.
Our net interest margin was 4.28% for the three-month period ended September 30, 2024, compared to 4.27% for the three-month period ended June 30, 2024. The yield on loans was 7.60% and 7.54% for the three months ended September 30, 2024 and June 30, 2024, respectively, as average loans increased from $14.65 billion to $14.76 billion. Additionally, the rate on interest bearing deposits increased to 3.02% as of September 30, 2024, from 3.00% as of June 30, 2024, while average interest-bearing deposits increased from $12.85 billion to $12.87 billion.
During the third quarter of 2024, there was $573,000 of event interest income compared to $1.7 million of event interest income for the second quarter of 2024.
Purchase accounting accretion on acquired loans was $1.9 million for both three-month periods ended September 30, 2024 and June 30, 2024, and average purchase accounting loan discounts were $20.8 million and $22.8 million for the three-month periods ended September 30, 2024 and June 30, 2024, respectively.
Net interest income on a fully taxable equivalent basis was $217.8 million for the three-month period ended September 30, 2024, and $214.5 million for the three-month period ended June 30, 2024. This increase in net interest income for the three-month period ended September 30, 2024, was the result of a $5.5 million increase in interest income, partially offset by a $2.1 million increase in interest expense. The $5.5 million increase in interest income was primarily the result of a $7.6 million increase in loan interest income, which was partially offset by a $1.7 million decrease in investment income and a $468,000 decrease in income from interest-bearing balances due from banks. The increase in interest income is primarily the result the growth in interest-earning assets and the current high interest rate environment. The $2.1 million increase in interest expense was due to a $2.0 million increase in interest expense on deposits. The increase in interest expense is also a result of the growth of average interest-bearing deposits and the current high interest rate environment.
The Company reported $42.8 million of non-interest income for the third quarter of 2024. The most important components of third quarter non-interest income were $10.5 million from other service charges and fees, $9.9 million from service charges on deposit accounts, $7.5 million from other income, $4.4 million from trust fees, $4.4 million in mortgage lending income, $2.6 million from dividends from FHLB, FRB, FNBB and other, $1.4 million from the fair value adjustment for marketable securities and $1.2 million from the increase in cash value of life insurance.
Non-interest expense for the third quarter of 2024 was $110.0 million. The most important components of non-interest expense were $58.9 million from salaries and employee benefits, $27.6 million in other operating expense, $14.5 million in occupancy and equipment expenses and $9.1 million in data processing expenses. For the third quarter of 2024, our efficiency ratio was 41.42%, and our efficiency ratio, as adjusted (non-GAAP), was 41.66%(1).
Financial Condition
Total loans receivable were $14.82 billion at September 30, 2024, compared to $14.78 billion at June 30, 2024. Total deposits were $16.71 billion at September 30, 2024, compared to $16.96 billion at June 30, 2024. Total assets were $22.82 billion at September 30, 2024, compared to $22.92 billion at June 30, 2024.
During the third quarter of 2024, the Company experienced approximately $42.5 million in loan growth. Our community banking footprint experienced $131.6 million in organic loan growth during the quarter ended September 30, 2024, and Centennial CFG experienced $89.1 million of organic loan decline and had loans of $2.00 billion at September 30, 2024.
Non-performing loans to total loans were 0.68% and 0.58% at September 30, 2024 and June 30, 2024, respectively. Non-performing assets to total assets were 0.63% and 0.56% at September 30, 2024 and June 30, 2024, respectively. Net charge-offs were $1.5 million and $2.4 million for the three months ended September 30, 2024 and June 30, 2024, respectively.
Non-performing loans at September 30, 2024 were $30.3 million, $40.8 million, $20.0 million, $391,000, $6.8 million and $2.8 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $101.1 million. Non-performing assets at September 30, 2024 were $30.4 million, $48.1 million, $33.0 million, $391,000, $6.8 million and $25.5 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $144.2 million.
The Company’s allowance for credit losses on loans was $312.6 million at September 30, 2024, or 2.11% of total loans, compared to the allowance for credit losses on loans of $295.9 million, or 2.00% of total loans, at June 30, 2024. As of September 30, 2024 and June 30, 2024, the Company’s allowance for credit losses on loans was 309.16% and 342.66% of its total non-performing loans, respectively.
Stockholders’ equity was $3.96 billion at September 30, 2024, compared to $3.86 billion at June 30, 2024, an increase of approximately $104.3 million. The net increase in stockholders’ equity is primarily associated with the $61.2 million increase in retained earnings and $66.9 million reduction in accumulated other comprehensive loss, partially offset by the $26.9 million in stock repurchases. Book value per common share was $19.91 at September 30, 2024, compared to $19.30 at June 30, 2024. Tangible book value per common share (non-GAAP) was $12.67(1) at September 30, 2024, compared to $12.08(1) at June 30, 2024.
Branches
The Company currently has 76 branches in Arkansas, 78 branches in Florida, 58 branches in Texas, 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 p.m. ET) on Thursday, October 17, 2024. We strongly encourage all participants to pre-register for the conference call webcast or the live call using one of the following links. First, participants can pre-register for the conference call webcast using the following link: https://events.q4inc.com/attendee/608252755. Participants who pre-register will be given a unique webcast link to gain immediate access to the conference call webcast. Second, participants can pre-register for the live call using the following link: https://www.netroadshow.com/events/login?show=96a4b06e&confId=71177. Participants who pre-register will be given the phone number and unique access codes 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 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 1-833-470-1428, Passcode: 892187. A replay of the call will be available by calling 1-866-813-9403, Passcode: 629464, which will be available until October 24, 2024, 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.
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, Texas, 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.
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
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); PPNR, as adjusted; pre-tax net income, as adjusted, to total revenue (net); pre-tax, pre-provision, profit percentage; pre-tax, pre-provision, profit percentage, as adjusted; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets excluding intangible amortization; return on average assets, as adjusted, excluding intangible amortization; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity, as adjusted; return on average tangible common equity excluding intangible amortization; return on average tangible common equity, as adjusted, excluding intangible amortization; efficiency ratio, as adjusted; 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 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 contains forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future, including future financial results. 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 are not guarantees of future events, performance or results. When we use words or phrases like “may,” “plan,” “propose,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,” “would,” “on track” and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risks 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, including the ongoing impacts of inflation; the ability to identify, complete and successfully integrate new acquisitions; the risk that expected cost savings and other benefits from acquisitions may not be fully realized or may take longer to realize than expected; diversion of management time on acquisition-related issues; the availability of and access to capital and liquidity on terms acceptable to us; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations; technological changes and cybersecurity risks and incidents; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability, military conflicts and other major domestic or international events; the impacts of recent or future adverse weather events, including hurricanes, and other natural disasters; disruptions, uncertainties and related effects on credit quality, liquidity and other aspects of our business and operations that may result from any future public health crises; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; potential increases in deposit insurance assessments, increased regulatory scrutiny or market disruptions resulting from financial challenges in the banking industry; 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, 2023, filed with the SEC on February 26, 2024.
FOR MORE INFORMATION CONTACT:
Donna Townsell
Director of Investor Relations
Home BancShares, Inc.
(501) 328-4625Home BancShares, Inc. Consolidated End of Period Balance Sheets (Unaudited) (In thousands) Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023 Sep. 30, 2023 ASSETS Cash and due from banks $ 265,408 $ 229,209 $ 205,262 $ 226,363 $ 229,474 Interest-bearing deposits with other banks 752,269 829,507 969,996 773,850 258,605 Cash and cash equivalents 1,017,677 1,058,716 1,175,258 1,000,213 488,079 Federal funds sold 6,425 — 5,200 5,100 3,925 Investment securities - available-for-sale, net of allowance for credit losses 3,270,620 3,344,539 3,400,884 3,507,841 3,472,173 Investment securities - held-to-maturity, net of allowance for credit losses 1,277,090 1,278,853 1,280,586 1,281,982 1,283,475 Total investment securities 4,547,710 4,623,392 4,681,470 4,789,823 4,755,648 Loans receivable 14,823,979 14,781,457 14,513,673 14,424,728 14,271,833 Allowance for credit losses (312,574 ) (295,856 ) (290,294 ) (288,234 ) (285,562 ) Loans receivable, net 14,511,405 14,485,601 14,223,379 14,136,494 13,986,271 Bank premises and equipment, net 388,776 383,691 389,618 393,300 397,093 Foreclosed assets held for sale 43,040 41,347 30,650 30,486 691 Cash value of life insurance 219,353 218,198 215,424 214,516 213,351 Accrued interest receivable 118,871 120,984 119,029 118,966 110,946 Deferred tax asset, net 176,629 195,041 202,882 197,164 222,741 Goodwill 1,398,253 1,398,253 1,398,253 1,398,253 1,398,253 Core deposit intangible 42,395 44,490 46,630 48,770 51,023 Other assets 352,583 350,192 347,928 323,573 322,617 Total assets $ 22,823,117 $ 22,919,905 $ 22,835,721 $ 22,656,658 $ 21,950,638 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits: Demand and non-interest-bearing $ 3,937,168 $ 4,068,302 $ 4,115,603 $ 4,085,501 $ 4,280,429 Savings and interest-bearing transaction accounts 10,966,426 11,150,516 11,047,258 11,050,347 10,786,087 Time deposits 1,802,116 1,736,985 1,703,269 1,651,863 1,452,229 Total deposits 16,705,710 16,955,803 16,866,130 16,787,711 16,518,745 Securities sold under agreements to repurchase 179,416 137,996 176,107 142,085 160,120 FHLB and other borrowed funds 1,300,750 1,301,050 1,301,050 1,301,300 1,001,550 Accrued interest payable and other liabilities 238,058 230,011 241,345 194,653 175,367 Subordinated debentures 439,394 439,542 439,688 439,834 439,982 Total liabilities 18,863,328 19,064,402 19,024,320 18,865,583 18,295,764 Stockholders' equity Common stock 1,989 1,997 2,008 2,015 2,023 Capital surplus 2,272,100 2,295,893 2,326,824 2,348,023 2,363,210 Retained earnings 1,880,562 1,819,412 1,753,994 1,690,112 1,640,171 Accumulated other comprehensive loss (194,862 ) (261,799 ) (271,425 ) (249,075 ) (350,530 ) Total stockholders' equity 3,959,789 3,855,503 3,811,401 3,791,075 3,654,874 Total liabilities and stockholders' equity $ 22,823,117 $ 22,919,905 $ 22,835,721 $ 22,656,658 $ 21,950,638 Home BancShares, Inc. Consolidated Statements of Income (Unaudited) Quarter Ended Nine Months Ended (In thousands) Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023 Sep. 30, 2023 Sep. 30, 2024 Sep. 30, 2023 Interest income: Loans $ 281,977 $ 274,324 $ 265,294 $ 260,003 $ 249,464 $ 821,595 $ 729,613 Investment securities Taxable 31,006 32,587 33,229 34,016 34,520 96,822 104,559 Tax-exempt 7,704 7,769 7,803 7,855 7,868 23,276 23,763 Deposits - other banks 12,096 12,564 10,528 4,281 2,328 35,188 10,742 Federal funds sold 62 59 61 65 82 182 156 Total interest income 332,845 327,303 316,915 306,220 294,262 977,063 868,833 Interest expense: Interest on deposits 97,785 95,741 92,548 87,971 78,698 286,074 208,007 Federal funds purchased 1 — — — 1 1 3 FHLB and other borrowed funds 14,383 14,255 14,276 9,878 8,161 42,914 20,947 Securities sold under agreements to repurchase 1,335 1,363 1,404 1,480 1,344 4,102 3,333 Subordinated debentures 4,121 4,122 4,097 4,121 4,121 12,340 12,368 Total interest expense 117,625 115,481 112,325 103,450 92,325 345,431 244,658 Net interest income 215,220 211,822 204,590 202,770 201,937 631,632 624,175 Provision for credit losses on loans 18,200 8,000 5,500 5,650 2,800 31,700 6,300 Provision for (recovery of) credit losses on unfunded commitments 1,000 — (1,000 ) — (1,500 ) — (1,500 ) (Recovery of) provision for credit losses on investment securities (330 ) — — — — (330 ) 1,683 Total credit loss expense 18,870 8,000 4,500 5,650 1,300 31,370 6,483 Net interest income after credit loss expense 196,350 203,822 200,090 197,120 200,637 600,262 617,692 Non-interest income: Service charges on deposit accounts 9,888 9,714 9,686 10,072 10,062 29,288 29,135 Other service charges and fees 10,490 10,679 10,189 10,422 10,128 31,358 33,766 Trust fees 4,403 4,722 5,066 4,316 4,660 14,191 13,576 Mortgage lending income 4,437 4,276 3,558 2,385 3,132 12,271 8,353 Insurance commissions 595 565 508 480 562 1,668 1,606 Increase in cash value of life insurance 1,161 1,279 1,195 1,170 1,170 3,635 3,485 Dividends from FHLB, FRB, FNBB & other 2,637 2,998 3,007 3,010 2,916 8,642 8,632 Gain on SBA loans 145 56 198 42 97 399 236 Gain (loss) on branches, equipment and other assets, net 32 2,052 (8 ) 583 — 2,076 924 Gain on OREO, net 85 49 17 13 — 151 319 Fair value adjustment for marketable securities 1,392 (274 ) 1,003 5,024 4,507 2,121 (6,118 ) Other income 7,514 6,658 7,380 5,331 6,179 21,552 33,172 Total non-interest income 42,779 42,774 41,799 42,848 43,413 127,352 127,086 Non-interest expense: Salaries and employee benefits 58,861 60,427 60,910 63,430 64,512 180,198 193,536 Occupancy and equipment 14,546 14,408 14,551 14,965 15,463 43,505 45,338 Data processing expense 9,088 8,935 9,147 9,107 9,103 27,170 27,222 Other operating expenses 27,550 29,415 26,888 39,673 25,684 83,853 79,592 Total non-interest expense 110,045 113,185 111,496 127,175 114,762 334,726 345,688 Income before income taxes 129,084 133,411 130,393 112,793 129,288 392,888 399,090 Income tax expense 29,046 31,881 30,284 26,550 30,835 91,211 92,404 Net income $ 100,038 $ 101,530 $ 100,109 $ 86,243 $ 98,453 $ 301,677 $ 306,686 Home BancShares, Inc. Selected Financial Information (Unaudited) Quarter Ended Nine Months Ended (Dollars and shares in thousands, except per share data) Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023 Sep. 30, 2023 Sep. 30, 2024 Sep. 30, 2023 PER SHARE DATA Diluted earnings per common share $ 0.50 $ 0.51 $ 0.50 $ 0.43 $ 0.49 $ 1.51 $ 1.51 Diluted earnings per common share, as adjusted (non-GAAP)(1) 0.50 0.52 0.49 0.46 0.47 1.51 1.51 Basic earnings per common share 0.50 0.51 0.50 0.43 0.49 1.51 1.51 Dividends per share - common 0.195 0.18 0.18 0.18 0.18 0.555 0.54 Book value per common share 19.91 19.30 18.98 18.81 18.06 19.91 18.06 Tangible book value per common share (non-GAAP)(1) 12.67 12.08 11.79 11.63 10.90 12.67 10.90 STOCK INFORMATION Average common shares outstanding 199,380 200,319 201,210 201,756 202,526 200,300 202,921 Average diluted shares outstanding 199,461 200,465 201,390 201,891 202,650 200,430 203,068 End of period common shares outstanding 198,879 199,746 200,797 201,526 202,323 198,879 202,323 ANNUALIZED PERFORMANCE METRICS Return on average assets (ROA) 1.74 % 1.79 % 1.78 % 1.55 % 1.78 % 1.77 % 1.84 % Return on average assets, as adjusted: (ROA, as adjusted) (non-GAAP)(1) 1.72 % 1.83 % 1.76 % 1.66 % 1.72 % 1.77 % 1.84 % Return on average assets excluding intangible amortization (non-GAAP)(1) 1.88 % 1.94 % 1.93 % 1.69 % 1.95 % 1.92 % 2.01 % Return on average assets, as adjusted, excluding intangible amortization (non-GAAP)(1) 1.86 % 1.98 % 1.91 % 1.81 % 1.87 % 1.92 % 2.00 % Return on average common equity (ROE) 10.23 % 10.73 % 10.64 % 9.36 % 10.65 % 10.53 % 11.32 % Return on average common equity, as adjusted: (ROE, as adjusted) (non-GAAP)(1) 10.12 % 10.98 % 10.54 % 10.00 % 10.25 % 10.55 % 11.30 % Return on average tangible common equity (ROTCE) (non-GAAP)(1) 16.26 % 17.29 % 17.22 % 15.49 % 17.62 % 16.91 % 18.90 % Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) (non-GAAP)(1) 16.09 % 17.69 % 17.07 % 16.56 % 16.95 % 16.94 % 18.87 % Return on average tangible common equity excluding intangible amortization (non-GAAP)(1) 16.51 % 17.56 % 17.50 % 15.80 % 17.95 % 17.18 % 19.24 % Return on average tangible common equity, as adjusted, excluding intangible amortization (non-GAAP)(1) 16.34 % 17.97 % 17.34 % 16.87 % 17.29 % 17.20 % 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 Nine Months Ended (Dollars in thousands) Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023 Sep. 30, 2023 Sep. 30, 2024 Sep. 30, 2023 Efficiency ratio 41.42 % 43.17 % 44.22 % 50.64 % 45.53 % 42.91 % 44.76 % Efficiency ratio, as adjusted (non-GAAP)(1) 41.66 % 42.59 % 44.43 % 46.43 % 46.44 % 42.87 % 44.86 % Net interest margin - FTE (NIM) 4.28 % 4.27 % 4.13 % 4.17 % 4.19 % 4.23 % 4.28 % Fully taxable equivalent adjustment $ 2,616 $ 2,628 $ 892 $ 1,091 $ 1,293 $ 6,136 $ 4,415 Total revenue (net) 257,999 254,596 246,389 245,618 245,350 758,984 751,261 Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) 147,954 141,411 134,893 118,443 130,588 424,258 405,573 PPNR, as adjusted (non-GAAP)(1) 146,562 141,886 133,728 126,402 125,743 422,176 405,113 Pre-tax net income to total revenue (net) 50.03 % 52.40 % 52.92 % 45.92 % 52.70 % 51.76 % 53.12 % Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1) 49.49 % 52.59 % 52.45 % 49.16 % 50.72 % 51.49 % 53.06 % P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) 57.35 % 55.54 % 54.75 % 48.22 % 53.23 % 55.90 % 53.99 % P5NR, as adjusted (non-GAAP)(1) 56.81 % 55.73 % 54.28 % 51.46 % 51.25 % 55.62 % 53.92 % Total purchase accounting accretion $ 1,878 $ 1,873 $ 2,772 $ 2,324 $ 2,431 $ 6,523 $ 8,263 Average purchase accounting loan discounts 20,832 22,788 24,820 27,397 29,915 22,813 32,656 OTHER OPERATING EXPENSES Advertising $ 1,810 $ 1,692 $ 1,654 $ 2,226 $ 2,295 $ 5,156 $ 6,624 Amortization of intangibles 2,095 2,140 2,140 2,253 2,477 6,375 7,432 Electronic banking expense 3,569 3,412 3,156 3,599 3,709 10,137 10,714 Directors' fees 362 423 498 399 417 1,283 1,415 Due from bank service charges 302 282 276 274 282 860 841 FDIC and state assessment 3,360 5,494 3,318 16,016 2,794 12,172 9,514 Insurance 926 905 903 873 878 2,734 2,694 Legal and accounting 1,902 2,617 2,081 1,192 1,514 6,600 4,038 Other professional fees 2,062 2,108 2,236 1,640 2,117 6,406 7,175 Operating supplies 673 613 683 777 860 1,969 2,361 Postage 522 497 523 503 491 1,542 1,578 Telephone 455 444 470 515 544 1,369 1,645 Other expense 9,512 8,788 8,950 9,406 7,306 27,250 23,561 Total other operating expenses $ 27,550 $ 29,415 $ 26,888 $ 39,673 $ 25,684 $ 83,853 $ 79,592 (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) Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023 Sep. 30, 2023 BALANCE SHEET RATIOS Total loans to total deposits 88.74 % 87.18 % 86.05 % 85.92 % 86.40 % Common equity to assets 17.35 % 16.82 % 16.69 % 16.73 % 16.65 % Tangible common equity to tangible assets (non-GAAP)(1) 11.78 % 11.23 % 11.06 % 11.05 % 10.76 % . LOANS RECEIVABLE Real estate Commercial real estate loans Non-farm/non-residential $ 5,496,536 $ 5,599,925 $ 5,616,965 $ 5,549,954 $ 5,614,259 Construction/land development 2,741,419 2,511,817 2,330,555 2,293,047 2,154,030 Agricultural 335,965 345,461 337,618 325,156 336,160 Residential real estate loans Residential 1-4 family 1,932,352 1,910,143 1,899,974 1,844,260 1,808,248 Multifamily residential 482,648 509,091 415,926 435,736 444,239 Total real estate 10,988,920 10,876,437 10,601,038 10,448,153 10,356,936 Consumer 1,219,197 1,189,386 1,163,228 1,153,690 1,153,461 Commercial and industrial 2,084,667 2,242,072 2,284,775 2,324,991 2,195,678 Agricultural 352,963 314,600 278,609 307,327 332,608 Other 178,232 158,962 186,023 190,567 233,150 Loans receivable $ 14,823,979 $ 14,781,457 $ 14,513,673 $ 14,424,728 $ 14,271,833 ALLOWANCE FOR CREDIT LOSSES Balance, beginning of period $ 295,856 $ 290,294 $ 288,234 $ 285,562 $ 285,683 Loans charged off 2,001 3,098 3,978 3,592 3,449 Recoveries of loans previously charged off 519 660 538 614 528 Net loans charged off 1,482 2,438 3,440 2,978 2,921 Provision for credit losses - loans 18,200 8,000 5,500 5,650 2,800 Balance, end of period $ 312,574 $ 295,856 $ 290,294 $ 288,234 $ 285,562 Net charge-offs to average total loans 0.04 % 0.07 % 0.10 % 0.08 % 0.08 % Allowance for credit losses to total loans 2.11 % 2.00 % 2.00 % 2.00 % 2.00 % NON-PERFORMING ASSETS Non-performing loans Non-accrual loans $ 95,747 $ 78,090 $ 67,055 $ 59,971 $ 84,184 Loans past due 90 days or more 5,356 8,251 12,928 4,130 6,674 Total non-performing loans 101,103 86,341 79,983 64,101 90,858 Other non-performing assets Foreclosed assets held for sale, net 43,040 41,347 30,650 30,486 691 Other non-performing assets 63 63 63 785 64 Total other non-performing assets 43,103 41,410 30,713 31,271 755 Total non-performing assets $ 144,206 $ 127,751 $ 110,696 $ 95,372 $ 91,613 Allowance for credit losses for loans to non-performing loans 309.16 % 342.66 % 362.94 % 449.66 % 314.29 % Non-performing loans to total loans 0.68 % 0.58 % 0.55 % 0.44 % 0.64 % Non-performing assets to total assets 0.63 % 0.56 % 0.48 % 0.42 % 0.42 % (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release. Home BancShares, Inc. Consolidated Net Interest Margin (Unaudited) Three Months Ended September 30, 2024 June 30, 2024 (Dollars in thousands) Average
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
RateASSETS Earning assets Interest-bearing balances due from banks $ 903,456 $ 12,096 5.33 % $ 929,916 $ 12,564 5.43 % Federal funds sold 4,629 62 5.33 % 4,424 59 5.36 % Investment securities - taxable 3,391,838 31,006 3.64 % 3,445,769 32,587 3.80 % Investment securities - non-taxable - FTE 1,163,568 10,181 3.48 % 1,185,001 10,254 3.48 % Loans receivable - FTE 14,762,667 282,116 7.60 % 14,648,564 274,467 7.54 % Total interest-earning assets 20,226,158 335,461 6.60 % 20,213,674 329,931 6.56 % Non-earning assets 2,667,626 2,662,275 Total assets $ 22,893,784 $ 22,875,949 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest-bearing liabilities Savings and interest-bearing transaction accounts $ 11,095,572 $ 79,232 2.84 % $ 11,118,587 $ 77,928 2.82 % Time deposits 1,769,952 18,553 4.17 % 1,732,610 17,813 4.14 % Total interest-bearing deposits 12,865,524 97,785 3.02 % 12,851,197 95,741 3.00 % Federal funds purchased 43 1 9.25 % 33 — — % Securities sold under agreement to repurchase 157,178 1,335 3.38 % 159,899 1,363 3.43 % FHLB and other borrowed funds 1,300,876 14,383 4.40 % 1,301,050 14,255 4.41 % Subordinated debentures 439,467 4,121 3.73 % 439,613 4,122 3.77 % Total interest-bearing liabilities 14,763,088 117,625 3.17 % 14,751,792 115,481 3.15 % Non-interest bearing liabilities Non-interest bearing deposits 3,993,187 4,083,916 Other liabilities 247,797 234,441 Total liabilities 19,004,072 19,070,149 Shareholders' equity 3,889,712 3,805,800 Total liabilities and shareholders' equity $ 22,893,784 $ 22,875,949 Net interest spread 3.43 % 3.41 % Net interest income and margin - FTE $ 217,836 4.28 % $ 214,450 4.27 % Home BancShares, Inc. Consolidated Net Interest Margin (Unaudited) Nine Months Ended September 30, 2024 September 30, 2023 (Dollars in thousands) Average Balance Income/ Expense Yield/ Rate Average Balance Income/ Expense Yield/ Rate ASSETS Earning assets Interest-bearing balances due from banks $ 878,368 $ 35,188 5.35 % $ 313,637 $ 10,742 4.58 % Federal funds sold 4,688 182 5.19 % 3,577 156 5.83 % Investment securities - taxable 3,436,874 96,822 3.76 % 3,726,710 104,559 3.75 % Investment securities - non-taxable - FTE 1,202,003 29,077 3.23 % 1,280,947 27,848 2.91 % Loans receivable - FTE 14,633,382 821,930 7.50 % 14,307,358 729,943 6.82 % Total interest-earning assets 20,155,315 983,199 6.52 % 19,632,229 873,248 5.95 % Non-earning assets 2,662,627 2,640,096 Total assets $ 22,817,942 $ 22,272,325 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest-bearing liabilities Savings and interest-bearing transaction accounts $ 11,084,397 $ 232,757 2.80 % $ 11,246,350 $ 185,560 2.21 % Time deposits 1,729,400 53,317 4.12 % 1,189,620 22,447 2.52 % Total interest-bearing deposits 12,813,797 286,074 2.98 % 12,435,970 208,007 2.24 % Federal funds purchased 26 1 5.14 % 59 3 6.80 % Securities sold under agreement to repurchase 163,013 4,102 3.36 % 144,603 3,333 3.08 % FHLB borrowed funds 1,301,005 42,914 4.41 % 701,748 20,947 3.99 % Subordinated debentures 439,613 12,340 3.75 % 440,199 12,368 3.76 % Total interest-bearing liabilities 14,717,454 345,431 3.14 % 13,722,579 244,658 2.38 % Non-interest bearing liabilities Non-interest bearing deposits 4,031,447 4,729,515 Other liabilities 242,422 197,498 Total liabilities 18,991,323 18,649,592 Shareholders' equity 3,826,619 3,622,733 Total liabilities and shareholders' equity $ 22,817,942 $ 22,272,325 Net interest spread 3.38 % 3.57 % Net interest income and margin - FTE $ 637,768 4.23 % $ 628,590 4.28 % Home BancShares, Inc. Non-GAAP Reconciliations (Unaudited) Quarter Ended Nine Months Ended (Dollars and shares in thousands, except per share data) Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023 Sep. 30, 2023 Sep. 30, 2024 Sep. 30, 2023 EARNINGS, AS ADJUSTED GAAP net income available to common shareholders (A) $ 100,038 $ 101,530 $ 100,109 $ 86,243 $ 98,453 $ 301,677 $ 306,686 Pre-tax adjustments FDIC special assessment — 2,260 — 12,983 — 2,260 — BOLI death benefits — — (162 ) — (338 ) (162 ) (3,117 ) Gain on sale of building — (2,059 ) — — — (2,059 ) — Fair value adjustment for marketable securities (1,392 ) 274 (1,003 ) (5,024 ) (4,507 ) (2,121 ) 6,118 Recoveries on historic losses — — — — — — (3,461 ) Total pre-tax adjustments (1,392 ) 475 (1,165 ) 7,959 (4,845 ) (2,082 ) (460 ) Tax-effect of adjustments (348 ) 119 (251 ) 1,989 (1,112 ) (480 ) (30 ) Deferred tax asset write-down — 2,030 — — — 2,030 — Total adjustments after-tax (B) (1,044 ) 2,386 (914 ) 5,970 (3,733 ) 428 (430 ) Earnings, as adjusted (C) $ 98,994 $ 103,916 $ 99,195 $ 92,213 $ 94,720 $ 302,105 $ 306,256 Average diluted shares outstanding (D) 199,461 200,465 201,390 201,891 202,650 200,430 203,068 GAAP diluted earnings per share: (A/D) $ 0.50 $ 0.51 $ 0.50 $ 0.43 $ 0.49 $ 1.51 $ 1.51 Adjustments after-tax: (B/D) 0.00 0.01 (0.01 ) 0.03 (0.02 ) 0.00 0.00 Diluted earnings per common share, as adjusted: (C/D) $ 0.50 $ 0.52 $ 0.49 $ 0.46 $ 0.47 $ 1.51 $ 1.51 ANNUALIZED RETURN ON AVERAGE ASSETS Return on average assets: (A/E) 1.74 % 1.79 % 1.78 % 1.55 % 1.78 % 1.77 % 1.84 % Return on average assets, as adjusted: (ROA, as adjusted) ((A+D)/E) 1.72 % 1.83 % 1.76 % 1.66 % 1.72 % 1.77 % 1.84 % Return on average assets excluding intangible amortization: ((A+C)/(E-F)) 1.88 % 1.94 % 1.93 % 1.69 % 1.95 % 1.92 % 2.01 % Return on average assets, as adjusted, excluding intangible amortization: ((A+C+D)/(E-F)) 1.86 % 1.98 % 1.91 % 1.81 % 1.87 % 1.92 % 2.00 % GAAP net income available to common shareholders (A) $ 100,038 $ 101,530 $ 100,109 $ 86,243 $ 98,453 $ 301,677 $ 306,686 Amortization of intangibles (B) 2,095 2,140 2,140 2,253 2,477 6,375 7,432 Amortization of intangibles after-tax (C) 1,572 1,605 1,605 1,690 1,866 4,782 5,598 Adjustments after-tax (D) (1,044 ) 2,386 (914 ) 5,970 (3,733 ) 428 (430 ) Average assets (E) 22,893,784 22,875,949 22,683,259 22,056,440 21,902,434 22,817,942 22,272,325 Average goodwill & core deposit intangible (F) 1,441,654 1,443,778 1,445,902 1,448,061 1,450,478 1,443,770 1,452,933 Home BancShares, Inc. Non-GAAP Reconciliations (Unaudited) Quarter Ended Nine Months Ended (Dollars in thousands) Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023 Sep. 30, 2023 Sep. 30, 2024 Sep. 30, 2023 ANNUALIZED RETURN ON AVERAGE COMMON EQUITY Return on average common equity: (A/D) 10.23 % 10.73 % 10.64 % 9.36 % 10.65 % 10.53 % 11.32 % Return on average common equity, as adjusted: (ROE, as adjusted) ((A+C)/D) 10.12 % 10.98 % 10.54 % 10.00 % 10.25 % 10.55 % 11.30 % Return on average tangible common equity: (A/(D-E)) 16.26 % 17.29 % 17.22 % 15.49 % 17.62 % 16.91 % 18.90 % Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) ((A+C)/(D-E)) 16.09 % 17.69 % 17.07 % 16.56 % 16.95 % 16.94 % 18.87 % Return on average tangible common equity excluding intangible amortization: (B/(D-E)) 16.51 % 17.56 % 17.50 % 15.80 % 17.95 % 17.18 % 19.24 % Return on average tangible common equity, as adjusted, excluding intangible amortization: ((B+C)/(D-E)) 16.34 % 17.97 % 17.34 % 16.87 % 17.29 % 17.20 % 19.22 % GAAP net income available to common shareholders (A) $ 100,038 $ 101,530 $ 100,109 $ 86,243 $ 98,453 $ 301,677 $ 306,686 Earnings excluding intangible amortization (B) 101,610 103,135 101,714 87,933 100,319 306,459 312,284 Adjustments after-tax (C) (1,044 ) 2,386 (914 ) 5,970 (3,733 ) 428 (430 ) Average common equity (D) 3,889,712 3,805,800 3,783,652 3,656,720 3,667,339 3,826,619 3,622,733 Average goodwill & core deposits intangible (E) 1,441,654 1,443,778 1,445,902 1,448,061 1,450,478 1,443,770 1,452,933 EFFICIENCY RATIO & P5NR Efficiency ratio: ((D-G)/(B+C+E)) 41.42 % 43.17 % 44.22 % 50.64 % 45.53 % 42.91 % 44.76 % Efficiency ratio, as adjusted: ((D-G-I)/(B+C+E-H)) 41.66 % 42.59 % 44.43 % 46.43 % 46.44 % 42.87 % 44.86 % Pre-tax net income to total revenue (net) (A/(B+C)) 50.03 % 52.40 % 52.92 % 45.92 % 52.70 % 51.76 % 53.12 % Pre-tax net income, as adjusted, to total revenue (net) ((A+F)/(B+C)) 49.49 % 52.59 % 52.45 % 49.16 % 50.72 % 51.49 % 53.06 % Pre-tax, pre-provision, net income (PPNR) (B+C-D) $ 147,954 $ 141,411 $ 134,893 $ 118,443 $ 130,588 $ 424,258 $ 405,573 Pre-tax, pre-provision, net income, as adjusted (B+C-D+F) $ 146,562 $ 141,886 $ 133,728 $ 126,402 $ 125,743 $ 422,176 $ 405,113 P5NR (Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C) 57.35 % 55.54 % 54.75 % 48.22 % 53.23 % 55.90 % 53.99 % P5NR, as adjusted (B+C-D+F)/(B+C) 56.81 % 55.73 % 54.28 % 51.46 % 51.25 % 55.62 % 53.92 % Pre-tax net income (A) $ 129,084 $ 133,411 $ 130,393 $ 112,793 $ 129,288 $ 392,888 $ 399,090 Net interest income (B) 215,220 211,822 204,590 202,770 201,937 631,632 624,175 Non-interest income (C) 42,779 42,774 41,799 42,848 43,413 127,352 127,086 Non-interest expense (D) 110,045 113,185 111,496 127,175 114,762 334,726 345,688 Fully taxable equivalent adjustment (E) 2,616 2,628 892 1,091 1,293 6,136 4,415 Total pre-tax adjustments (F) (1,392 ) 475 (1,165 ) 7,959 (4,845 ) (2,082 ) (460 ) Amortization of intangibles (G) 2,095 2,140 2,140 2,253 2,477 6,375 7,432 Adjustments: Non-interest income: Fair value adjustment for marketable securities $ 1,392 $ (274 ) $ 1,003 $ 5,024 $ 4,507 $ 2,121 $ (6,118 ) Gain on OREO 85 49 17 13 — 151 319 Gain (loss) on branches, equipment and other assets, net 32 2,052 (8 ) 583 — 2,076 924 BOLI death benefits — — 162 — 338 162 3,117 Recoveries on historic losses — — — — — — 3,461 Total non-interest income adjustments (H) $ 1,509 $ 1,827 $ 1,174 $ 5,620 $ 4,845 $ 4,510 $ 1,703 Non-interest expense: FDIC special assessment — 2,260 — 12,983 — 2,260 — Total non-interest expense adjustments (I) $ — $ 2,260 $ — $ 12,983 $ — $ 2,260 $ — Home BancShares, Inc. Non-GAAP Reconciliations (Unaudited) Quarter Ended Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023 Sep. 30, 2023 TANGIBLE BOOK VALUE PER COMMON SHARE Book value per common share: (A/B) $ 19.91 $ 19.30 $ 18.98 $ 18.81 $ 18.06 Tangible book value per common share: ((A-C-D)/B) $ 12.67 $ 12.08 $ 11.79 $ 11.63 $ 10.90 Total stockholders' equity (A) $ 3,959,789 $ 3,855,503 $ 3,811,401 $ 3,791,075 $ 3,654,874 End of period common shares outstanding (B) 198,879 199,746 200,797 201,526 202,323 Goodwill (C) 1,398,253 1,398,253 1,398,253 1,398,253 1,398,253 Core deposit and other intangibles (D) 42,395 44,490 46,630 48,770 51,023 TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS Equity to assets: (B/A) 17.35 % 16.82 % 16.69 % 16.73 % 16.65 % Tangible common equity to tangible assets: ((B-C-D)/(A-C-D)) 11.78 % 11.23 % 11.06 % 11.05 % 10.76 % Total assets (A) $ 22,823,117 $ 22,919,905 $ 22,835,721 $ 22,656,658 $ 21,950,638 Total stockholders' equity (B) 3,959,789 3,855,503 3,811,401 3,791,075 3,654,874 Goodwill (C) 1,398,253 1,398,253 1,398,253 1,398,253 1,398,253 Core deposit and other intangibles (D) 42,395 44,490 46,630 48,770 51,023