CONWAY, Ark., Oct. 18, 2018 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, today announced a quarterly profit of $80.3 million for the third quarter of 2018 compared to $14.8 million, a 443% increase for the same quarter in 2017.  Diluted earnings per share for the third quarter of 2018 was $0.46 per share compared to $0.10 per share, for the same period in 2017.

Highlights of the Third Quarter of 2018:

Performance Metric	Q3	Q2
Net Income	$80.3 million	$76.0 million
Total Revenue	$205.9 million	$194.2 million
Diluted Earnings Per Share	$0.46	$0.44
ROA	2.14%	2.13%
ROTCE	24.56%	24.27%
Margin	4.46%	4.47%
Loan Origination	$987 million	$958 million

The Company’s third quarter 2017 earnings included a hurricane reserve as a result of Hurricane Irma, which made initial landfall in the Florida Keys as a Category 4 hurricane on September 10, 2017.  The Company accrued $33.4 million of pre-tax hurricane expenses in the third quarter of 2017.  Excluding the previously mentioned impact of Hurricane Irma, the $18.2 million of merger expenses associated with the Stonegate acquisition and $20.0 million tax-effect of the adjustments, third quarter 2017 earnings, as adjusted (non-GAAP), were $46.4 million.  As a result, the third quarter 2018 earnings of $80.3 million represent an increase of $33.8 million or 72.8% compared to the third quarter 2017 earnings, as adjusted.

“I am very proud to report that in our first quarter of swimming upstream with Durbin and HOMB $2.00 expenses, HOMB was still able to report record quarterly net income of $80.3 million and record quarterly loan originations of $987 million,” said John Allison, Chairman.

“Our first full quarter with Shore Premier Finance did not create the drag on margin as much as we anticipated, with 4.46% compared to 4.47% in the second quarter, mostly due to the strong contribution by Centennial CFG this quarter,” said Tracy French, Centennial Bank President and Chief Executive Officer, added.

“We are once again proud to report our most profitable quarter in the Company’s history,” said Randy Sims, Home BancShares, Inc. Chief Executive Officer.  “We continue to control expenses and are pleased to report another strong efficiency ratio of 37.23%.”

Operating Highlights

Net interest margin, on a fully taxable equivalent basis, was 4.46% for the quarter just ended compared to 4.40% for the same quarter in 2017.   Net interest margin for the third quarter of 2018 includes accretion income of $10.7 million and average purchase accounting loan discounts of $151.4 million, compared to accretion income of $7.2 million and average purchase accounting loan discounts of $98.0 million for the third quarter of 2017.  Accretion yield remained consistent at $10.7 million for both the second and third quarters of 2018.

During the third quarter of 2018, the Company did not record a provision for loan loss compared to $1.6 million, excluding the $33.4 million of hurricane expense, recorded in the third quarter of 2017.  The Company continues to see improvement in asset quality.  Non-performing loans to total loans was 0.52% as of September 30, 2018 compared to 0.62% as of September 30, 2017, an improvement of 16.2%. Non-performing assets to total assets also improved from 0.60% as of September 30, 2017 to 0.47% as of September 30, 2018, an improvement of 21.5%.  For the third quarter of 2018, net charge-offs were $1.3 million compared to net charge-offs of $3.5 million for the third quarter of 2017.

The Company reported $25.8 million of non-interest income for the third quarter of 2018, compared to $21.5 million for the third quarter of 2017.  The most important components of the third quarter non-interest income were $9.0 million from other service charges and fees, $7.0 million from service charges on deposits accounts, $3.7 million from mortgage lending income, $2.4 million from other income and $1.3 million from dividends from the FHLB, FRB, FNBB & other equity investments.

Non-interest expense for the third quarter of 2018 was $66.1 million compared to $70.8 million for the third quarter of 2017.  Excluding $18.2 million in merger expenses during the third quarter of 2017, non-interest expense increased $13.5 million from $52.6 million for the third quarter of 2017 to $66.1 million for the third quarter of 2018.  This increase excluding merger expenses is primarily the result of $9.3 million growth in salaries and employee benefits expense and $3.3 million growth in other operating expense resulting from the acquisition of Stonegate Bank in the third quarter of 2017.  For the third quarter of 2018, our efficiency ratio improved to 37.23% from the 53.77% reported for the third quarter of 2017. 

Financial Condition

Total loans receivable were $10.83 billion at September 30, 2018 compared to $10.33 billion at December 31, 2017.  Total deposits were $10.62 billion at September 30, 2018 compared to $10.39 billion at December 31, 2017.  Total assets were $14.91 billion at September 30, 2018 compared to $14.45 billion at December 31, 2017.

During the third quarter 2018 the Company experienced approximately $67.5 million in organic loan decline.  Centennial CFG experienced $175.1 million of organic loan decline and had loans of $1.47 billion at September 30, 2018.  Our legacy footprint produced approximately $107.6 million in organic loan growth during the quarter.   

Non-performing loans at September 30, 2018 were $14.5 million, $40.0 million, $133,000, $1.8 million and zero in the Arkansas, Florida, Alabama, Shore Premier and Centennial CFG markets, respectively, for a total of $56.5 million.  Non-performing assets at September 30, 2018 were $21.1 million, $46.7 million, $774,000, $1.8 million and zero in the Arkansas, Florida, Alabama, Shore Premier and Centennial CFG markets, respectively, for a total of $70.4 million. 

The Company’s allowance for loan losses was $110.2 million at September 30, 2018, or 1.02% of total loans, compared to $110.3 million, or 1.07% of total loans, at December 31, 2017. As of September 30, 2018, and December 31, 2017, the Company’s allowance for loan losses was 195% and 247% of its total non-performing loans, respectively.

Stockholders’ equity was $2.34 billion at September 30, 2018 compared to $2.20 billion at December 31, 2017, an increase of $136.7 million. The increase in stockholders’ equity is primarily associated with the $171.2 million increase in retained earnings offset by $27.3 million of comprehensive loss and the repurchase of $43.2 million of our common stock during the first nine months of 2018. Book value per common share was $13.44 at September 30, 2018 compared to $12.70 at December 31, 2017.  Tangible book value per common share (non-GAAP) was $7.68 at September 30, 2018 compared to $7.07 at December 31, 2017, an annualized increase of 11.5%. 

Branches

During the fourth quarter of 2018, the Company plans to open a loan production office in Dallas, Texas. The Company currently has 77 branches in Arkansas, 76 branches in Florida, 5 branches in Alabama and one branch in New York City.

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, October 18, 2018.  We encourage all participants to pre-register for the conference call using the following link:  http://dpregister.com/10123959.  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: 10123959, which will be available until October 25, 2018 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 earnings, as adjusted; return on average assets excluding intangible amortization; return on average assets, as adjusted; return on average common equity excluding intangible amortization; efficiency ratio, as adjusted; tangible book value per common share; and the tangible common equity to tangible assets ratio--to provide meaningful supplemental information regarding our performance.  These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions.  Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

General

This release contains forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements.  These factors include, but are not limited to, the following:  economic conditions, credit quality, interest rates, loan demand, the ability to successfully integrate new acquisitions, increased regulatory requirements as a result of our exceeding $10 billion in total assets, legislative and regulatory changes, technological changes and cybersecurity risks, competition from other financial institutions, changes in the assumptions used in making the forward-looking statements, and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 27, 2018.

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)
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(In thousands)		2018			2018			2018			2017			2017
ASSETS
Cash and due from banks	$	208,681		$	197,658		$	185,479		$	166,915		$	197,953
Interest-bearing deposits with other banks		323,376			298,085			325,122			469,018			354,367
Cash and cash equivalents		532,057			495,743			510,601			635,933			552,320
Federal funds sold		500			500			1,825			24,109			4,545
Investment securities - available-for-sale		1,744,430			1,718,704			1,693,018			1,663,517			1,575,685
Investment securities - held-to-maturity		199,266			204,401			213,731			224,756			234,945
Loans receivable		10,832,815			10,897,970			10,325,736			10,331,188			10,286,193
Allowance for loan losses		(110,191	)		(111,516	)		(110,212	)		(110,266	)		(111,620	)
Loans receivable, net		10,722,624			10,786,454			10,215,524			10,220,922			10,174,573
Bank premises and equipment, net		233,652			234,634			235,607			237,439			239,990
Foreclosed assets held for sale		13,507			17,853			20,134			18,867			21,701
Cash value of life insurance		148,014			147,281			147,424			146,866			146,158
Accrued interest receivable		48,909			45,682			45,361			45,708			41,071
Deferred tax asset, net		79,548			78,435			78,328			76,564			121,787
Goodwill		958,408			956,418			927,949			927,949			929,129
Core deposit and other intangibles		44,484			46,101			47,726			49,351			50,982
Other assets		187,339			191,914			186,001			177,779			163,081
Total assets	$	14,912,738		$	14,924,120		$	14,323,229		$	14,449,760		$	14,255,967
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing	$	2,482,857		$	2,523,553		$	2,473,602		$	2,385,252		$	2,555,465
Savings and interest-bearing transaction accounts		6,420,951			6,573,902			6,437,408			6,476,819			6,341,883
Time deposits		1,720,930			1,638,578			1,485,605			1,526,431			1,551,422
Total deposits		10,624,738			10,736,033			10,396,615			10,388,502			10,448,770
Federal funds purchased		-			-			-			-			-
Securities sold under agreements to repurchase		142,146			139,750			150,315			147,789			149,531
FHLB and other borrowed funds		1,363,851			1,309,950			1,115,061			1,299,188			1,044,333
Accrued interest payable and other liabilities		72,381			55,971			54,845			41,959			38,782
Subordinated debentures		368,596			368,403			368,212			368,031			367,835
Total liabilities		12,571,712			12,610,107			12,085,048			12,245,469			12,049,251
Stockholders' equity
Common stock		1,741			1,745			1,736			1,736			1,737
Capital surplus		1,668,106			1,693,337			1,671,141			1,675,318			1,674,642
Retained earnings		701,900			642,540			585,586			530,658			526,448
Accumulated other comprehensive (loss) income		(30,721	)		(23,609	)		(20,282	)		(3,421	)		3,889
Total stockholders' equity		2,341,026			2,314,013			2,238,181			2,204,291			2,206,716
Total liabilities and stockholders' equity	$	14,912,738		$	14,924,120		$	14,323,229		$	14,449,760		$	14,255,967

Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
		Quarter Ended													Nine Months Ended
		Sep. 30,			Jun. 30,		Mar. 31		Dec. 31,		Sep. 30,				Sep. 30,			Sep. 30,
(In thousands)		2018			2018		2018		2017		2017				2018			2017
Interest income
Loans	$	166,334		$	152,996	$	148,065	$	147,426	$	113,269			$	467,395		$	331,763
Investment securities
Taxable		9,011			8,979		8,970		7,793		7,071				26,960			18,983
Tax-exempt		3,427			3,368		3,006		3,025		3,032				9,801			8,942
Deposits - other banks		1,273			1,206		929		736		538				3,408			1,573
Federal funds sold		6			12		6		1		3				24			9
Total interest income		180,051			166,561		160,976		158,981		123,913				507,588			361,270
Interest expense
Interest on deposits		21,412			18,164		14,806		12,946		8,535				54,382			20,831
Federal funds purchased		-			-		1		1		-				1			-
FHLB borrowed funds		7,055			4,245		4,580		3,806		3,408				15,880			10,707
Securities sold under agreements to repurchase		472			372		376		325		232				1,220			593
Subordinated debentures		5,202			5,168		5,004		4,934		4,969				15,374			10,203
Total interest expense		34,141			27,949		24,767		22,012		17,144				86,857			42,334
Net interest income		145,910			138,612		136,209		136,969		106,769				420,731			318,936
Provision for loan losses		-			2,722		1,600		4,926		35,023				4,322			39,324
Net interest income after
provision for loan losses		145,910			135,890		134,609		132,043		71,746				416,409			279,612
Non-interest income
Service charges on deposit accounts		6,992			6,780		6,075		6,566		6,408				19,847			18,356
Other service charges and fees		9,041			9,797		10,155		10,144		8,490				28,993			25,983
Trust fees		437			379		446		548		365				1,262			1,130
Mortgage lending income		3,691			3,477		2,657		3,573		3,172				9,825			9,713
Insurance commissions		463			526		679		466		472				1,668			1,482
Increase in cash value of life insurance		735			730		654		738		478				2,119			1,251
Dividends from FHLB, FRB, FNBB & other		1,288			1,600		877		1,030		834				3,765			2,455
Gain on acquisitions		-			-		-		-		-				-			3,807
Gain (loss) on SBA loans		47			262		182		-		163				491			738
Gain (loss) on branches, equipment and other assets, net		(102	)		-		7		2		(1,337	)			(95	)		(962	)
Gain (loss) on OREO, net		836			1,046		405		176		335				2,287			849
Gain (loss) on securities, net		-			-		-		1,193		136				-			939
Other income		2,419			3,076		3,668		2,856		1,941				9,163			6,603
Total non-interest income		25,847			27,673		25,805		27,292		21,457				79,325			72,344
Non-interest expense
Salaries and employee benefits		37,825			34,476		35,014		35,404		28,510				107,315			83,965
Occupancy and equipment		8,148			8,519		8,983		9,009		7,887				25,650			21,602
Data processing expense		3,461			3,339		3,986		3,559		2,853				10,786			8,439
Other operating expenses		16,689			16,894		15,397		15,246		31,596				48,980			62,984
Total non-interest expense		66,123			63,228		63,380		63,218		70,846				192,731			176,990
Income before income taxes		105,634			100,335		97,034		96,117		22,357				303,003			174,966
Income tax expense		25,350			24,310		23,970		72,808		7,536				73,630			63,192
Net income	$	80,284		$	76,025	$	73,064	$	23,309	$	14,821			$	229,373		$	111,774

Home BancShares, Inc.
Selected Financial Information
(Unaudited)
		Quarter Ended																Nine Months Ended
	Sep. 30,			Jun. 30,			Mar. 31			Dec. 31,			Sep. 30,				Sep. 30,			Sep. 30,
(Dollars and shares in thousands, except per share data)		2018			2018			2018			2017			2017				2018			2017
PER SHARE DATA
Diluted earnings per common share	$	0.46		$	0.44		$	0.42		$	0.13		$	0.10			$	1.32		$	0.78
Diluted earnings per common share excluding gain on acquisitions, merger expenses, FDIC loss share buy-out expense, reduced provision for loan losses as a result of a significant loan recovery, hurricane expenses & effect of tax rate change (non-GAAP)(1)		0.46			0.44			0.42			0.35			0.32				1.32			1.00
Basic earnings per common share		0.46			0.44			0.42			0.13			0.10				1.32			0.78
Dividends per share - common		0.1200			0.1100			0.1100			0.1100			0.1100				0.3400			0.2900
Book value per common share		13.44			13.26			12.89			12.70			12.71				13.44			12.71
Tangible book value per common share (non-GAAP)(1)		7.68			7.52			7.27			7.07			7.06				7.68			7.06
STOCK INFORMATION
Average common shares outstanding		174,440			173,403			173,761			173,641			144,238				173,870			143,111
Average diluted shares outstanding		174,867			173,936			174,383			174,349			144,987				174,394			143,839
End of period common shares outstanding		174,135			174,511			173,603			173,633			173,666				174,135			173,666
ANNUALIZED PERFORMANCE METRICS
Return on average assets		2.14	%		2.13	%		2.08	%		0.66	%		0.54	%			2.12	%		1.41	%
Return on average assets excluding gain on acquisitions, merger expenses, FDIC loss share buy-out expense, reduced provision for loan losses as a result of a significant loan recovery, hurricane expenses & effect of tax rate change (non-GAAP)(1)		2.14	%		2.13	%		2.08	%		1.69	%		1.70	%			2.12	%		1.82	%
Return on average assets excluding intangible amortization (non-GAAP)(1)		2.33	%		2.32	%		2.27	%		0.73	%		0.59	%			2.31	%		1.49	%
Return on average assets excluding intangible amortization,  provision for loan losses, gain on acquisitions, merger expenses, FDIC loss share buy-out expense, hurricane expenses and income taxes (ROA, as adjusted) (non-GAAP)(1)		3.07	%		3.15	%		3.07	%		3.10	%		2.94	%			3.09	%		3.14	%
Return on average common equity		13.74	%		13.54	%		13.38	%		4.17	%		3.88	%			13.56	%		10.33	%
Return on average tangible common equity excluding intangible  amortization (non-GAAP)(1)		24.56	%		24.27	%		24.33	%		7.78	%		5.80	%			24.39	%		15.06	%
Efficiency ratio		37.23	%		36.74	%		37.83	%		37.05	%		53.77	%			37.26	%		43.92	%
Efficiency ratio, as adjusted (non-GAAP)(1)		37.40	%		37.03	%		37.97	%		37.35	%		39.12	%			37.46	%		37.79	%
Net interest margin - FTE		4.46	%		4.47	%		4.46	%		4.47	%		4.40	%			4.46	%		4.53	%
Fully taxable equivalent adjustment	$	1,489		$	1,403		$	1,209		$	1,983		$	1,846			$	4,101		$	5,873
Total revenue		205,898			194,234			186,781			186,273			145,370				586,913			433,614
Total purchase accounting accretion		10,744			10,669			10,608			12,397			7,174				32,021			23,319
Average purchase accounting loan discounts		151,377			153,624			164,122			178,027			97,978				156,855			97,158
OTHER OPERATING EXPENSES
Advertising	$	1,154		$	1,142		$	962		$	898		$	795			$	3,258		$	2,305
Merger and acquisition expenses		-			-			-			-			18,227				-			25,743
Amortization of intangibles		1,617			1,624			1,626			1,631			906				4,867			2,576
Electronic banking expense		1,947			1,828			1,878			1,777			1,712				5,653			4,885
Directors' fees		314			318			330			313			309				962			946
Due from bank service charges		253			242			219			254			472				714			1,348
FDIC and state assessment		2,293			2,788			1,608			1,476			1,293				6,689			3,763
Insurance		762			714			887			814			577				2,363			1,698
Legal and accounting		761			858			778			1,194			698				2,397			1,799
Other professional fees		1,748			1,601			1,639			1,537			1,436				4,988			3,822
Operating supplies		510			602			600			602			432				1,712			1,376
Postage		311			323			344			323			280				978			861
Telephone		337			371			373			347			305				1,081			1,027
Other expense		4,682			4,483			4,153			4,080			4,154				13,318			10,835
Total other operating expenses	$	16,689		$	16,894		$	15,397		$	15,246		$	31,596			$	48,980		$	62,984
(1)  Calculation of this metric and the reconciliation to GAAP is included in the schedules accompanying this release.

Home BancShares, Inc.
Selected Financial Information
(Unaudited)
	Sep. 30,			June. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(Dollars in thousands)		2018			2018			2018			2017			2017
BALANCE SHEET RATIOS
Total loans to total deposits		101.96	%		101.51	%		99.32	%		99.45	%		98.44	%
Common equity to assets		15.70	%		15.51	%		15.63	%		15.25	%		15.48	%
Tangible common equity to tangible assets (non-GAAP)(1)		9.62	%		9.42	%		9.46	%		9.11	%		9.24	%
LOANS RECEIVABLE
Real estate
Commercial real estate loans
Non-farm/non-residential	$	4,685,827		$	4,734,315		$	4,658,209		$	4,600,117		$	4,532,402
Construction/land development		1,550,910			1,662,199			1,641,834			1,700,491			1,648,923
Agricultural		72,930			77,053			81,151			82,229			88,295
Residential real estate loans
Residential 1-4 family		1,982,666			1,960,841			1,915,346			1,970,311			1,968,688
Multifamily residential		608,608			540,526			464,194			441,303			497,910
Total real estate		8,900,941			8,974,934			8,760,734			8,794,451			8,736,218
Consumer		428,192			417,499			40,842			46,148			51,515
Commercial and industrial		1,303,841			1,287,637			1,324,173			1,297,397			1,296,485
Agricultural		58,644			55,768			50,770			49,815			57,489
Other		141,197			162,132			149,217			143,377			144,486
Loans receivable	$	10,832,815		$	10,897,970		$	10,325,736		$	10,331,188		$	10,286,193
Discount for credit losses on purchased loans	$	120,849		$	129,903		$	137,404		$	146,557		$	158,001
Purchased loans, net of discount for credit losses on purchased loans		3,081,695			3,522,753			3,232,004			3,464,990			3,653,079
ALLOWANCE FOR LOAN LOSSES
Balance, beginning of period	$	111,516		$	110,212		$	110,266		$	111,620		$	80,138
Loans charged off		2,501			2,132			2,540			6,936			4,424
Recoveries of loans previously charged off		1,176			714			886			656			883
Net loans (recovered)/charged off		1,325			1,418			1,654			6,280			3,541
Provision for loan losses		-			2,722			1,600			4,926			35,023
Balance, end of period	$	110,191		$	111,516		$	110,212		$	110,266		$	111,620
Net (recoveries) charge-offs to average total loans		0.05	%		0.05	%		0.06	%		0.24	%		0.18	%
Allowance for loan losses to total loans		1.02	%		1.02	%		1.07	%		1.07	%		1.09	%
NON-PERFORMING ASSETS
Non-performing loans
Non-accrual loans	$	36,198		$	37,082		$	36,266		$	34,032		$	34,794
Loans past due 90 days or more		20,267			19,696			13,223			10,665			29,183
Total non-performing loans		56,465			56,778			49,489			44,697			63,977
Other non-performing assets
Foreclosed assets held for sale, net		13,507			17,853			20,134			18,867			21,701
Other non-performing assets		405			3			3			3			3
Total other non-performing assets		13,912			17,856			20,137			18,870			21,704
Total non-performing assets	$	70,377		$	74,634		$	69,626		$	63,567		$	85,681
Allowance for loan losses for loans to non-performing loans		195.15	%		196.41	%		222.70	%		246.70	%		174.47	%
Non-performing loans to total loans		0.52	%		0.52	%		0.48	%		0.43	%		0.62	%
Non-performing assets to total assets		0.47	%		0.50	%		0.49	%		0.44	%		0.60	%
(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
		September 30, 2018							June 30, 2018
		Average		Income/	Yield/				Average		Income/	Yield/
(Dollars in thousands)		Balance		Expense	Rate				Balance		Expense	Rate
ASSETS
Earning assets
Interest-bearing balances due from banks	$	281,115	$	1,273	1.80	%		$	288,643	$	1,206	1.68	%
Federal funds sold		524		6	4.54	%			679		12	7.09	%
Investment securities - taxable		1,526,455		9,011	2.34	%			1,528,613		8,979	2.36	%
Investment securities - non-taxable - FTE		402,355		4,507	4.44	%			398,067		4,476	4.51	%
Loans receivable - FTE		10,909,646		166,743	6.06	%			10,345,846		153,291	5.94	%
Total interest-earning assets		13,120,095		181,540	5.49	%			12,561,848		167,964	5.36	%
Non-earning assets		1,760,836							1,742,635
Total assets	$	14,880,931						$	14,304,483
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	6,406,711	$	15,596	0.97	%		$	6,451,204	$	13,489	0.84	%
Time deposits		1,661,129		5,816	1.39	%			1,611,353		4,675	1.16	%
Total interest-bearing deposits		8,067,840		21,412	1.05	%			8,062,557		18,164	0.90	%
Federal funds purchased		-		-	0.00	%			46		-	0.00	%
Securities sold under agreement to repurchase		148,791		472	1.26	%			143,952		372	1.04	%
FHLB borrowed funds		1,398,738		7,055	2.00	%			928,357		4,245	1.83	%
Subordinated debentures		368,501		5,202	5.60	%			368,309		5,168	5.63	%
Total interest-bearing liabilities		9,983,870		34,141	1.36	%			9,503,221		27,949	1.18	%
Non-interest bearing liabilities
Non-interest bearing deposits		2,512,690							2,496,701
Other liabilities		66,441							53,149
Total liabilities		12,563,001							12,053,071
Shareholders' equity		2,317,930							2,251,412
Total liabilities and shareholders' equity	$	14,880,931						$	14,304,483
Net interest spread					4.13	%						4.18	%
Net interest income and margin - FTE			$	147,399	4.46	%				$	140,015	4.47	%

Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
		Nine Months Ended
		September 30, 2018							September 30, 2017
		Average		Income/	Yield/				Average		Income/	Yield/
(Dollars in thousands)		Balance		Expense	Rate				Balance		Expense	Rate
ASSETS
Earning assets
Interest-bearing balances due from banks	$	271,987	$	3,408	1.68	%		$	218,324	$	1,573	0.96	%
Federal funds sold		3,595		24	0.89	%			1,161		9	1.04	%
Investment securities - taxable		1,538,387		26,960	2.34	%			1,231,619		18,983	2.06	%
Investment securities - non-taxable - FTE		382,088		12,981	4.54	%			347,578		14,506	5.58	%
Loans receivable - FTE		10,529,117		468,316	5.95	%			7,785,925		332,072	5.70	%
Total interest-earning assets		12,725,174		511,689	5.38	%			9,584,607		367,143	5.12	%
Non-earning assets		1,750,456							1,033,310
Total assets	$	14,475,630						$	10,617,917
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	6,422,489	$	40,327	0.84	%		$	4,316,032	$	13,445	0.42	%
Time deposits		1,595,985		14,055	1.18	%			1,415,383		7,386	0.70	%
Total interest-bearing deposits		8,018,474		54,382	0.91	%			5,731,415		20,831	0.49	%
Federal funds purchased		41		1	3.26	%			-		-	0.00	%
Securities sold under agreement to repurchase		148,472		1,220	1.10	%			129,580		593	0.61	%
FHLB borrowed funds		1,159,973		15,880	1.83	%			1,155,503		10,707	1.24	%
Subordinated debentures		368,313		15,374	5.58	%			258,032		10,203	5.29	%
Total interest-bearing liabilities		9,695,273		86,857	1.20	%			7,274,530		42,334	0.78	%
Non-interest bearing liabilities
Non-interest bearing deposits		2,464,032							1,847,843
Other liabilities		54,731							48,804
Total liabilities		12,214,036							9,171,177
Shareholders' equity		2,261,594							1,446,740
Total liabilities and shareholders' equity	$	14,475,630						$	10,617,917
Net interest spread					4.18	%						4.34	%
Net interest income and margin - FTE			$	424,832	4.46	%				$	324,809	4.53	%

 

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
		Quarter Ended															Nine Months Ended
(Dollars and shares in thousands,		Sep. 30,			Jun. 30,			Mar. 31			Dec. 31,			Sep. 30,			Sep. 30,			Sep. 30,
except per share data)		2018			2018			2018			2017			2017			2018			2017
EARNINGS, AS ADJUSTED
GAAP net income available to common shareholders (A)	$	80,284		$	76,025		$	73,064		$	23,309		$	14,821		$	229,373		$	111,774
Adjustments
Gain on acquisitions		-			-			-			-			-			-			(3,807	)
Merger and acquisition expenses		-			-			-			-			18,227			-			25,743
Hurricane expenses(1)		-			-			-			-			33,445			-			33,445
Effect of tax rate change		-			-			-			36,935			-			-			-
Total adjustments		-			-			-			36,935			51,672			-			55,381
Tax-effect of adjustments(2)		-			-			-			-			20,045			-			22,626
Adjustments after-tax (B)		-			-			-			36,935			31,627			-			32,755
Earnings, as adjusted (C)	$	80,284		$	76,025		$	73,064		$	60,244		$	46,448		$	229,373		$	144,529
Average diluted shares outstanding (D)		174,867			173,936			174,383			174,349			144,987			174,394			143,839
GAAP diluted earnings per share: A/D	$	0.46		$	0.44		$	0.42		$	0.13		$	0.10		$	1.32		$	0.78
Adjustments after-tax: B/D		-			-			-			0.22			0.22			-			0.22
Diluted earnings per common share excluding gain on acquisitions, merger expenses,  hurricane expenses & effect of tax rate change: C/D	$	0.46		$	0.44		$	0.42		$	0.35		$	0.32		$	1.32		$	1.00
ANNUALIZED RETURN ON AVERAGE ASSETS
Return on average assets: A/H		2.14	%		2.13	%		2.08	%		0.66	%		0.54	%		2.12	%		1.41	%
Return on average assets excluding gain on acquisitions, merger expenses, hurricane expenses & effect of tax rate change: (A+F)/H		2.14	%		2.13	%		2.08	%		1.69	%		1.70	%		2.12	%		1.82	%
Return on average assets excluding intangible amortization:  (A+C)/(H-I)		2.33	%		2.32	%		2.27	%		0.73	%		0.59	%		2.31	%		1.49	%
Return on average assets excluding intangible amortization, provision for loan losses, gain on acquisitions, merger expenses, hurricane expenses and income taxes (ROA, as adjusted): (A+B+D+E+G)/(H-I)		3.07	%		3.15	%		3.07	%		3.10	%		2.94	%		3.09	%		3.14	%
GAAP net income available to common shareholders (A)	$	80,284		$	76,025		$	73,064		$	23,309		$	14,821		$	229,373		$	111,774
Amortization of intangibles (B)		1,617			1,624			1,626			1,631			906			4,867			2,576
Amortization of intangibles after-tax (C)		1,194			1,200			1,201			991			551			3,595			1,566
Provision for loan losses excluding hurricane provision (D)		-			2,722			1,600			4,926			2,134			4,322			6,435
Total adjustments (E)		-			-			-			36,935			51,672			-			55,381
Adjustments after-tax (F)		-			-			-			36,935			31,627			-			32,755
Income tax expense excluding effect of tax rate change (G)		25,350			24,310			23,970			35,873			7,536			73,630			63,192
Average assets (H)		14,880,931			14,304,483			14,234,369			14,113,936			10,853,559			14,475,630			10,617,917
Average goodwill, core deposits & other intangible assets (I)		1,001,843			975,345			976,451			979,209			462,799			984,639			440,465
(1)  Hurricane expenses include $32,889 of provision for loan losses and $556 of damage expense related to Hurricane Irma.
(2)  Effective tax rate of 39.225%, adjusted for non-taxable gain on acquisition and non-deductible merger-related costs.

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
		Quarter Ended																Nine Months Ended
(Dollars and shares in thousands,	Sep. 30,			Jun. 30,			Mar. 31			Dec. 31,			Sep. 30,				Sep. 30,			Sep. 30,
except per share data)		2018			2018			2018			2017			2017				2018			2017
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY
Return on average common equity: A/C		13.74	%		13.54	%		13.38	%		4.17	%		3.88	%			13.56	%		10.33	%
Return on average tangible common equity excluding intangible  amortization: (A+B)/(C-D)		24.56	%		24.27	%		24.33	%		7.78	%		5.80	%			24.39	%		15.06	%
GAAP net income available to common shareholders (A)	$	80,284		$	76,025		$	73,064		$	23,309		$	14,821			$	229,373		$	111,774
Amortization of intangibles after-tax (B)		1,194			1,200			1,201			991			551				3,595			1,566
Average common equity (C)		2,317,930			2,251,412			2,214,302			2,218,549			1,513,829				2,261,594			1,446,740
Average goodwill, core deposits & other intangible assets (D)		1,001,843			975,345			976,451			979,209			462,799				984,639			440,465
EFFICIENCY RATIO
Efficiency ratio:  ((C-E)/(A+B+D))		37.23	%		36.74	%		37.83	%		37.05	%		53.77	%			37.26	%		43.92	%
Efficiency ratio, as adjusted:  ((C-E-G)/(A+B+D-F))		37.40	%		37.03	%		37.97	%		37.35	%		39.12	%			37.46	%		37.79	%
Net interest income (A)	$	145,910		$	138,612		$	136,209		$	136,969		$	106,769			$	420,731		$	318,936
Non-interest income (B)		25,847			27,673			25,805			27,292			21,457				79,325			72,344
Non-interest expense (C)		66,123			63,228			63,380			63,218			70,846				192,731			176,990
Fully taxable equivalent adjustment (D)		1,489			1,403			1,209			1,983			1,846				4,101			5,873
Amortization of intangibles (E)		1,617			1,624			1,626			1,631			906				4,867			2,576
Adjustments:
Non-interest income:
Gain on acquisition	$	-		$	-		$	-		$	-		$	-			$	-		$	3,807
Gain (loss) on OREO		836			1,046			405			176			335				2,287			849
Gain (loss) on SBA loans		47			262			182			-			163				491			738
Gain (loss) on branches, equipment and other   assets, net		(102	)		-			7			2			(1,337	)			(95	)		(962	)
Gain (loss) on securities		-			-			-			1,193			136				-			939
Recoveries on historic losses		-			-			-			-			-				-			-
Total non-interest income adjustments (F)	$	781		$	1,308		$	594		$	1,371		$	(703	)		$	2,683		$	5,371
Non-interest expense:
Merger Expenses	$	-		$	-		$	-		$	-		$	18,227			$	-		$	25,743
Hurricane damage expense		-			-			-			-			556				-			556
Vacant properties write-downs		-			-			-			-			-				-			47
Total non-interest expense adjustments (G)	$	-		$	-		$	-		$	-		$	18,783			$	-		$	26,346

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(Dollars in thousands)		2018			2018			2018			2017			2017
TANGIBLE BOOK VALUE PER COMMON SHARE
Book value per common share: A/B	$	13.44		$	13.26		$	12.89		$	12.70		$	12.71
Tangible book value per common share: (A-C-D)/B		7.68			7.52			7.27			7.07			7.06
Total stockholders' equity (A)	$	2,341,026		$	2,314,013		$	2,238,181		$	2,204,291		$	2,206,716
End of period common shares outstanding (B)		174,135			174,511			173,603			173,633			173,666
Goodwill (C)	$	958,408		$	956,418		$	927,949		$	927,949		$	929,129
Core deposit and other intangibles (D)		44,484			46,101			47,726			49,351			50,982
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
Equity to assets: B/A		15.70	%		15.51	%		15.63	%		15.25	%		15.48	%
Tangible common equity to tangible assets: (B-C-D)/(A-C-D)		9.62	%		9.42	%		9.46	%		9.11	%		9.24	%
Total assets (A)	$	14,912,738		$	14,924,120		$	14,323,229		$	14,449,760		$	14,255,967
Total stockholders' equity (B)		2,341,026			2,314,013			2,238,181			2,204,291			2,206,716
Goodwill (C)		958,408			956,418			927,949			927,949			929,129
Core deposit and other intangibles (D)		44,484			46,101			47,726			49,351			50,982