EXHIBIT 99.1

Home BancShares, Inc. Announces 2017 Earnings

CONWAY, Ark., Jan. 18, 2018 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ:HOMB), parent company of Centennial Bank, today announced net income for the year ended December 31, 2017 of $135.1 million.  Diluted earnings per share for the year ended 2017 was $0.89 per share.  For the fourth quarter of 2017, the Company recorded a profit of $23.3 million.  Diluted earnings per share for the fourth quarter of 2017 was $0.13 per share.    

In addition to merger expenses and acquisition gain from the 2017 acquisitions, the Company’s annual earnings were significantly impacted by Hurricane Irma and the recently enacted “Tax Cuts and Jobs Act” (the “TCJA”).  Excluding the $36.9 million one-time TCJA charge, $33.4 million of hurricane expense, and $25.7 million of merger expenses associated with the 2017 acquisitions offset by $3.8 million of one-time non-taxable gain on acquisition, 2017 annual after-tax earnings excluding non-fundamental items were $204.8 million, an increase of 15.7% from 2016 annual after-tax earnings excluding non-fundamental items of $177.0 million.

Excluding the $36.9 million one-time TCJA charge, after-tax earnings excluding non-fundamental items for the fourth quarter of 2017 were $60.2 million, an increase of 30.6% from the fourth quarter 2016 after-tax earnings excluding non-fundamental items of $46.1 million. 

“Looking back on the last year, we were active in growing and navigating the Company as we crossed over the $10 billion threshold,” said John Allison, Home’s Chairman.  “Home added $3.46 billion in total assets through the completion of three acquisitions and issued $300 million of subordinated debt in an underwritten public offering.  While we experienced challenges through the year that largely impacted our earnings, including Hurricane Irma and the tax reform bill, we achieved milestone earnings excluding non-fundamental items of over $200 million for 2017 and over $60 million for the fourth quarter.  In 2018, we are well-positioned to continue to execute on opportunities to grow our Company with the focus of improving overall shareholder value.”

Tracy French, Centennial Bank President and Chief Executive Officer added, “We have been hard at work in 2017 managing the growth associated with our 2017 acquisitions.  Once we convert the Stonegate core operating systems on February 9, 2018, the Company will be well-positioned to realize the anticipated cost savings, thereby rewarding our shareholders.  Our team is focused on this important task and is working to recognize these enhancements as quickly as possible.”

“Excluding the impact of the tax rate change, we are proud to report outstanding fourth quarter of 2017 earnings of $60.2 million, or $0.35 diluted earnings per share,” said Randy Sims, Home BancShares, Inc. President and Chief Executive Officer.  “The Company was also able to maintain a sub-40 core efficiency ratio, reporting 37.35% for the fourth quarter of 2017, despite adding over $3 billion in assets through its 2017 acquisitions.  With these excellent results, our shareholders can remain confident that our strong metrics will continue to provide them with solid returns.”

Operating Highlights

Accretion yield increased approximately $5.2 million from $7.2 million for the third quarter of 2017 to $12.4 million for fourth quarter of 2017.  Each quarter we perform credit impairment tests on the credit impaired loans acquired in our acquisitions.  During our fourth quarter 2017 impairment testing, several pools were determined to have a projected credit improvement.  This projected credit improvement combined with the added accretion income from the acquisition of Stonegate Bank (“Stonegate”) offset by the expected decline in accretion income from the maturing and reduction of pay-offs in the previously acquired loan portfolios, resulted in a net increase of recognized accretion income when compared to the third quarter of 2017.  The net increase of recognized accretion income when compared to the third quarter of 2017 is primarily due to $5.4 million of accretion income added during the fourth quarter of 2017 as a result of the Stonegate acquisition offset by a slight decline in legacy accretion income during the fourth quarter of 2017. 

Net interest margin, on a fully taxable equivalent basis, was 4.47% for the quarter just ended compared to 4.75% for the same quarter in 2016 and compared to 4.40% for the third quarter of 2017.  The net interest margin, excluding accretion yield, decreased when comparing the third quarter of 2017 to the fourth quarter of 2017 at 4.07% and 4.01%, respectively. 

During the fourth quarter of 2017, the Company recorded a provision for loan loss of $4.9 million compared to $1.7 million in the fourth quarter of 2016.  The Company was able to reduce fourth quarter 2016 provision for loan losses as a result of a significant loan recovery from a borrower which was charged-off in 2010.  The Company estimates that the fourth quarter 2016 provision for loan losses was reduced by $4.5 million as a result of this loan recovery.  For the fourth quarter of 2017, net charge-offs were $6.3 million compared to net recoveries of $1.9 million for the fourth quarter of 2016.

The Company reported $27.3 million of non-interest income for the fourth quarter of 2017, compared to $23.8 million for the fourth quarter of 2016.  The most important components of the fourth quarter non-interest income were $10.1 million from other service charges and fees, $6.6 million from service charges on deposits accounts, $3.6 million from mortgage lending income, $2.9 million from other income and $1.2 million gain on securities, net.  

Non-interest expense for the fourth quarter of 2017 was $63.2 million compared to $47.5 million for the fourth quarter of 2016, an increase of $15.7 million.  This increase is primarily the result of an increase in the costs associated with asset growth from the three acquisitions during 2017 combined with approximately $723,000 of growth in quarterly non-interest expense related to the Centennial Commercial Finance Group (“Centennial CFG”).  For the fourth quarter of 2017, our core efficiency ratio was 37.35% which increased from the 35.97% reported for fourth quarter of 2016. 

Financial Condition

Total loans receivable were $10.33 billion at December 31, 2017 compared to $7.39 billion at December 31, 2016.  Total deposits were $10.39 billion at December 31, 2017 compared to $6.94 billion at December 31, 2016.  Total assets were $14.45 billion at December 31, 2017 compared to $9.81 billion at December 31, 2016.

During 2017, the Company acquired $2.82 billion of loans, net of purchase accounting discounts. As of December 31, 2017, the Company produced approximately $125.2 million of organic loan growth since December 31, 2016.  Centennial CFG produced $295.5 million of net organic loan growth during 2017 while the legacy and Stonegate footprints experienced significant net payoffs during 2017, resulting in a decline of $153.9 million and $16.5 million, respectively.

From September 30, 2017 to December 31, 2017, the Company experienced organic loan growth of approximately $45.0 million.  During the fourth quarter of 2017, Centennial CFG produced $181.8 million of organic loan growth, while the legacy and Stonegate footprints experienced significant net payoffs resulting in a decline of $113.2 million and $23.6 million, respectively.  Centennial CFG had loans of $1.40 billion at December 31, 2017.

Non-performing loans at December 31, 2017 were $15.5 million, $28.2 million, $929,000 and zero in the Arkansas, Florida, Alabama and Centennial CFG markets, respectively, for a total of $44.7 million.  Non-performing loans as a percent of total loans were 0.43% as of December 31, 2017 compared to 0.85% as of December 31, 2016.  Non-performing assets at December 31, 2017 were $25.6 million, $36.4 million, $1.6 million and zero in the Arkansas, Florida and Alabama and Centennial CFG markets, respectively, for a total of $63.6 million.  Non-performing assets as a percent of total assets were 0.44% as of December 31, 2017 compared to 0.81% as of December 31, 2016.  

The Company’s allowance for loan losses was $110.3 million at December 31, 2017, or 1.07% of total loans, compared to $80.0 million, or 1.08% of total loans, at December 31, 2016.  These changes are primarily the result of the $32.9 million storm-related provision for loan loss recorded during the third quarter of 2017 offset by acquiring $2.82 billion of loans during 2017 which do not have an associated allowance for loan losses as a result of purchase accounting.  As of December 31, 2017 and 2016, the Company’s allowance for loan losses was 247% and 127% of its total non-performing loans, respectively.

Stockholders’ equity was $2.20 billion at December 31, 2017 compared to $1.33 billion at December 31, 2016, an increase of $876.8 million.  The increase in stockholders’ equity is primarily associated with the $77.5 million and $742.3 million of common stock issued to the Giant Holdings, Inc. (“GHI”) and Stonegate shareholders, respectively, plus the $74.7 million increase in retained earnings offset by $3.8 million of comprehensive loss and the repurchase of $20.8 million of our common stock during 2017.  Book value per common share was $12.70 at December 31, 2017 compared to $9.45 at December 31, 2016 for an annualized increase of 34.4%.  

Branches

During the fourth quarter of 2017, the Company closed a branch location in Daphne, Alabama and a branch location in Naples, Florida.  The Company currently has 76 branches in Arkansas, 89 branches in Florida, 5 branches in Alabama and one branch in New York City. 

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, January 18, 2018.  We encourage all participants to pre-register for the conference call using the following link:  http://dpregister.com/10115147.  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: 10115147, which will be available until January 28, 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 excluding non-fundamental items, return on average assets excluding intangible amortization, return on average assets excluding non-fundamental items, return on average common equity excluding intangible amortization, core efficiency ratio, non-GAAP net interest margin, 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 non-fundamental items or non-recurring 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 core 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: the effects of future local, regional, national and international economic conditions, including inflation or a decrease in commercial real estate and residential housing values; changes in the level of nonperforming assets and charge-offs, and credit risk generally; the risks of changes in interest rates or the level and composition of deposits, loan demand and the values of loan collateral, securities and interest-sensitive assets and liabilities; the effect of any mergers, acquisitions or other transactions to which we or our bank subsidiary may from time to time be a party, including our ability to successfully integrate any businesses that we acquire; the risk that expected cost savings and other benefits from acquisitions may not be fully realized or may take longer to realize than expected; the possibility that an acquisition does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all; the reaction to a proposed acquisition transaction of the respective companies’ customers, employees and counterparties; diversion of management time on acquisition-related issues; the ability to enter into and/or close additional acquisitions; the availability of and access to capital on terms acceptable to us; increased regulatory requirements and supervision that will apply as a result of our exceeding $10 billion in total assets; legislation and regulation affecting the financial services industry as a whole, and the Company and its subsidiaries in particular, including the effects resulting from the reforms enacted by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the adoption of regulations by regulatory bodies under the Dodd-Frank Act; governmental monetary and fiscal policies, as well as legislative and regulatory changes, including as a result of initiatives of the newly elected administration of President Donald J. Trump; the effects of terrorism and efforts to combat it; political instability; the ability to keep pace with technological changes, including changes regarding cybersecurity;       an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting our bank subsidiary or our customers; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market area and elsewhere, including institutions operating regionally, nationally and internationally, together with competitors offering banking products and services by mail, telephone and the Internet; the effect of changes in accounting policies and practices and auditing requirements, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters; higher defaults on our loan portfolio than we expect; and the failure of assumptions underlying the establishment of our allowance for loan losses or changes in our estimate of the adequacy of the allowance for loan losses.  Additional information on factors that might affect Home BancShares, Inc.'s financial results is included in its Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2017. 

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.”

 Home BancShares, Inc.  
 Consolidated End of Period Balance Sheets  
 (Unaudited)  
        
   Dec. 31, 
  Sep. 30, 
  Jun. 30, 
  Mar. 31, 
  Dec. 31, 
  
 (In thousands)   2017   2017   2017   2017   2016   
                  
ASSETS                 
                  
Cash and due from banks $166,915 $197,953 $147,041 $163,662 $123,758  
Interest-bearing deposits with other banks    469,018    354,367    313,447    253,427    92,891  
Cash and cash equivalents  635,933  552,320  460,488  417,089  216,649  
Federal funds sold  24,109  4,545  -  1,700  1,550  
Investment securities - available-for-sale  1,663,517  1,575,685  1,400,431  1,250,590  1,072,920  
Investment securities - held-to-maturity  224,756  234,945  254,161  276,599  284,176  
Loans receivable  10,331,188  10,286,193  7,834,475  7,849,645  7,387,699  
Allowance for loan losses    (110,266)   (111,620)   (80,138)   (80,311)   (80,002) 
Loans receivable, net  10,220,922  10,174,573  7,754,337  7,769,334  7,307,697  
Bank premises and equipment, net  237,439  239,990  207,071  212,813  205,301  
Foreclosed assets held for sale  18,867  21,701  18,789  17,315  15,951  
Cash value of life insurance  146,866  146,158  97,684  97,223  86,491  
Accrued interest receivable  45,708  41,071  32,445  32,413  30,838  
Deferred tax asset, net    76,564    121,787    68,368    67,063    61,298  
Goodwill    927,949    929,129    420,941    420,941    377,983  
Core deposit and other intangibles    49,351    50,982    21,019    21,885    18,311  
Other assets    177,779    163,081    136,494    132,503    129,300  
Total assets  $  14,449,760 $  14,255,967 $  10,872,228 $  10,717,468 $  9,808,465  
                  
LIABILITIES AND STOCKHOLDERS' EQUITY                 
                  
Liabilities                 
Deposits:                 
Demand and non-interest-bearing $2,385,252 $2,555,465 $1,957,677 $1,862,996 $1,695,184  
Savings and interest-bearing transaction accounts  6,476,819  6,341,883  4,335,456  4,274,194  3,963,241  
Time deposits    1,526,431    1,551,422    1,474,255    1,430,017    1,284,002  
Total deposits  10,388,502  10,448,770  7,767,388  7,567,207  6,942,427  
Federal funds purchased  -  -  -  -  -  
Securities sold under agreements to repurchase  147,789  149,531  133,741  123,793  121,290  
FHLB and other borrowed funds  1,299,188  1,044,333  1,099,478  1,455,040  1,305,198  
Accrued interest payable and other liabilities  41,959  38,782  37,751  69,125  51,234  
Subordinated debentures    368,031    367,835    357,838    60,735    60,826  
Total liabilities     12,245,469    12,049,251    9,396,196    9,275,900    8,480,975  
                  
Stockholders' equity                  
Common stock  1,736  1,737  1,431  1,434  1,405  
Capital surplus  1,675,318  1,674,642  940,821  948,982  869,737  
Retained earnings  530,658  526,448  527,338  490,142  455,948  
Accumulated other comprehensive (loss) income    (3,421)   3,889    6,442    1,010    400  
Total stockholders' equity     2,204,291    2,206,716    1,476,032    1,441,568    1,327,490  
Total liabilities and stockholders' equity  $  14,449,760 $  14,255,967 $  10,872,228 $  10,717,468 $  9,808,465  
                  

 

 Home BancShares, Inc.  
 Consolidated Statements of Income  
 (Unaudited)  
           
   Quarter Ended   Year Ended  
   Dec. 31,    Sep. 30,    Jun. 30,    Mar. 31,    Dec. 31,     Dec. 31,    Dec. 31,   
 (In thousands)    2017    2017    2017    2017    2016     2017    2016   
                         
Interest income                         
Loans $147,426 $113,269 $112,732 $105,762 $103,113  $479,189 $403,394  
Investment securities                        
Taxable  7,793  7,071  6,434  5,478  5,068   26,776  21,246  
Tax-exempt  3,025  3,032  2,966  2,944  3,059   11,967  11,417  
Deposits - other banks  736  538  727  308  146   2,309  471  
Federal funds sold    1    3    4    2    2     10    9  
                         
Total interest income    158,981    123,913    122,863    114,494    111,388     520,251    436,537  
                         
Interest expense                         
Interest on deposits  12,946  8,535  6,810  5,486  4,398   33,777  15,926  
Federal funds purchased  1  -  -  -  -   1  2  
FHLB borrowed funds  3,806  3,408  3,710  3,589  3,201   14,513  12,484  
Securities sold under agreements to repurchase  325  232  196  165  153   918  574  
Subordinated debentures    4,934    4,969    4,795    439    429     15,137    1,593  
                         
Total interest expense  22,012  17,144  15,511  9,679  8,181   64,346  30,579  
                         
Net interest income   136,969  106,769  107,352  104,815  103,207   455,905  405,958  
Provision for loan losses  4,926  35,023  387  3,914  1,703   44,250  18,608  
Net interest income after                         
  provision for loan losses   132,043  71,746  106,965  100,901  101,504   411,655  387,350  
                         
Non-interest income                         
Service charges on deposit accounts  6,566  6,408  5,966  5,982  6,442   24,922  25,049  
Other service charges and fees  10,144  8,490  8,576  8,917  7,611   36,127  30,200  
Trust fees  548  365  309  456  329   1,678  1,457  
Mortgage lending income  3,573  3,172  3,750  2,791  4,123   13,286  14,399  
Insurance commissions  466  472  465  545  488   1,948  2,296  
Increase in cash value of life insurance  738  478  463  310  320   1,989  1,412  
Dividends from FHLB, FRB, Bankers' Bank & other  1,030  834  472  1,149  944   3,485  3,091  
Gain on acquisitions  -  -  -  3,807  -   3,807  -  
Gain (loss) on SBA loans  -  163  387  188  645   738  1,088  
Gain (loss) on branches, equipment and
  other assets, net
  2  (1,337) 431  (56) (1)  (960) 700  
Gain (loss) on OREO, net  176  335  393  121  159   1,025  (554) 
Gain (loss) on securities, net  1,193  136  380  423  644   2,132  669  
FDIC indemnification accretion/(amortization), net  -  -  -  -  -   -  (772) 
Other income  2,856  1,941  2,825  1,837  2,124   9,459  8,016  
                         
Total non-interest income  27,292  21,457  24,417  26,470  23,828   99,636  87,051  
                         
Non-interest expense                         
Salaries and employee benefits  35,404  28,510  28,034  27,421  26,944   119,369  101,962  
Occupancy and equipment  9,009  7,887  7,034  6,681  6,281   30,611  26,129  
Data processing expense  3,559  2,853  2,863  2,723  2,278   11,998  10,499  
Other operating expenses  15,246  31,596  13,072  18,316  11,991   78,230  53,165  
                         
Total non-interest expense  63,218  70,846  51,003  55,141  47,494   240,208  191,755  
                         
Income before income taxes   96,117  22,357  80,379  72,230  77,838   271,083  282,646  
Income tax expense  72,808  7,536  30,282  25,374  29,248   136,000  105,500  
Net income  $23,309 $14,821 $50,097 $46,856 $48,590  $135,083 $177,146  
                         

 

 Home BancShares, Inc.  
 Selected Financial Information  
 (Unaudited)  
          
  Quarter Ended   Year Ended  
   Dec. 31,   Sep. 30, 
  Jun. 30, 
  Mar. 31, 
  Dec. 31, 
   Dec. 31, 
  Dec. 31, 
  
 (Dollars and shares in thousands, except per share data)   2017    2017    2017    2017    2016     2017    2016   
                        
PER SHARE DATA                       
                        
Diluted earnings per common share$0.13 $0.10 $0.35 $0.33 $0.35  $0.89 $1.26  
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)
 0.35  0.32  0.35  0.33  0.33   1.35  1.26  
Basic earnings per common share 0.13  0.10  0.35  0.33  0.35   0.90  1.26  
Dividends per share - common 0.1100  0.1100  0.0900  0.0900  0.0900   0.4000  0.3425  
Book value per common share 12.70  12.71  10.32  10.05  9.45   12.70  9.45  
Tangible book value per common share (non-GAAP)(1) 7.07  7.06  7.23  6.96  6.63   7.07  6.63  
                        
                        
STOCK INFORMATION                       
                        
Average common shares outstanding 173,641  144,238  143,282  141,785  140,465   150,806  140,418  
Average diluted shares outstanding 174,349  144,987  144,116  142,492  140,781   151,528  140,713  
End of period common shares outstanding 173,633  173,666  143,071  143,442  140,472   173,633  140,472  
          
          
ANNUALIZED PERFORMANCE METRICS         
          
Return on average assets 0.66%  0.54%  1.86%  1.86%  1.98%   1.17%  1.85%  
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)
 1.69%  1.70%  1.88%  1.88%  1.88%   1.78%  1.85%  
Return on average assets excluding intangible
  amortization (non-GAAP)(1)
 0.73%  0.59%  1.96%  1.96%  2.08%   1.26%  1.95%  
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 (Core ROA)
  (non-GAAP)(1)
 3.10%  2.94%  3.19%  3.31%  3.23%   3.13%  3.32%  
Return on average common equity 4.17%  3.88%  13.83%  13.85%  14.79%   8.23%  14.08%  
Return on average tangible common equity excluding
  intangible amortization (non-GAAP)(1)
 7.78%  5.80%  20.09%  20.08%  21.45%   12.92%  20.82%  
Efficiency ratio 37.05%  53.77%  37.48%  40.76%  36.19%   41.89%  37.65%  
Core efficiency ratio (non-GAAP)(1) 37.35%  39.12%  37.29%  36.96%  35.97%   37.66%  36.55%  
Net interest margin - FTE 4.47%  4.40%  4.50%  4.70%  4.75%   4.51%  4.81%  
Fully taxable equivalent adjustment$1,983 $1,846 $2,016 $2,011 $2,108  $7,856 $7,924  
Total revenue 186,273  145,370  147,280  140,964  135,216   619,887  523,588  
          
          
OTHER OPERATING EXPENSES         
          
Advertising$898 $795 $812 $698 $910  $3,203 $3,332  
Merger and acquisition expenses -  18,227  789  6,727  433   25,743  433  
FDIC loss share buy-out expense -  -  -  -  -   -  3,849  
Amortization of intangibles 1,631  906  866  804  762   4,207  3,132  
Electronic banking expense 1,777  1,712  1,654  1,519  1,621   6,662  5,742  
Directors' fees 313  309  324  313  294   1,259  1,150  
Due from bank service charges 254  472  456  420  393   1,602  1,354  
FDIC and state assessment 1,476  1,293  1,182  1,288  1,097   5,239  5,491  
Insurance 814  577  543  578  563   2,512  2,193  
Legal and accounting 1,194  698  474  627  442   2,993  2,206  
Other professional fees 1,537  1,436  1,233  1,153  943   5,359  4,049  
Operating supplies 602  432  477  467  466   1,978  1,758  
Postage 323  280  295  286  269   1,184  1,084  
Telephone 347  305  398  324  360   1,374  1,751  
Other expense 4,080  4,154  3,569  3,112  3,438   14,915  15,641  
                        
Total other operating expenses$15,246 $31,596 $13,072 $18,316 $11,991  $78,230 $53,165  
                        
                        
(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)   
         
   Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,  Dec. 31, 
   
 (Dollars in thousands)    2017    2017    2017    2017    2016    
                   
BALANCE SHEET RATIOS                  
                   
Total loans to total deposits  99.45%  98.44%  100.86%  103.73%  106.41%   
Common equity to assets  15.25%  15.48%  13.58%  13.45%  13.53%   
Tangible common equity to tangible assets (non-GAAP)(1)  9.11%  9.24%  9.91%  9.72%  9.89%   
                   
                   
LOANS RECEIVABLE                  
                   
Real estate                  
Commercial real estate loans                  
Non-farm/non-residential $4,600,117 $4,532,402 $3,368,663 $3,462,773 $3,153,121   
Construction/land development  1,700,491  1,648,923  1,315,309  1,217,519  1,135,843   
Agricultural  82,229  88,295  78,260  79,940  77,736   
Residential real estate loans                  
Residential 1-4 family  1,970,311  1,968,688  1,513,888  1,493,133  1,356,136   
Multifamily residential    441,303    497,910    398,781    404,815    340,926   
Total real estate  8,794,451  8,736,218  6,674,901  6,658,180  6,063,762   
Consumer  46,148  51,515  38,424  41,893  41,745   
Commercial and industrial  1,297,397  1,296,485  994,827  1,013,403  1,123,213   
Agricultural  49,815  57,489  69,697  69,307  74,673   
Other    143,377    144,486    56,626    66,862    84,306   
Loans receivable $  10,331,188 $  10,286,193 $  7,834,475 $  7,849,645 $  7,387,699   
                   
Discount for credit losses on purchased loans $146,557 $158,001 $95,627 $104,464 $100,148   
Purchased loans, net of discount for credit losses
  on purchased loans
  3,464,990  3,653,079  1,355,922  1,375,210  1,125,599   
         
         
ALLOWANCE FOR LOAN LOSSES        
         
Balance, beginning of period $111,620 $80,138 $80,311 $80,002 $76,370   
Loans charged off  6,936  4,424  1,405  4,706  4,836   
Recoveries of loans previously charged off    656    883    845    1,101    6,765   
Net loans (recovered)/charged off  6,280  3,541  560  3,605  (1,929)  
Provision for loan losses    4,926    35,023    387    3,914    1,703   
Balance, end of period $  110,266 $  111,620 $  80,138 $  80,311 $  80,002   
   -  -  -  -  -   
Net (recoveries) charge-offs to average total loans  0.24%  0.18%  0.03%  0.19%  -0.11%   
Allowance for loan losses to total loans  1.07%  1.09%  1.02%  1.02%  1.08%   
                   
                   
NON-PERFORMING ASSETS                  
                   
Non-performing loans                  
Non-accrual loans $34,032 $34,794 $32,426 $43,810 $47,182   
Loans past due 90 days or more    10,665    29,183    14,442    15,388    15,942   
Total non-performing loans    44,697    63,977    46,868    59,198    63,124   
Other non-performing assets                  
Foreclosed assets held for sale, net  18,867  21,701  18,789  17,315  15,951   
Other non-performing assets    3    3    3    3    3   
Total other non-performing assets    18,870    21,704    18,792    17,318    15,954   
Total non-performing assets $  63,567 $  85,681 $  65,660 $  76,516 $  79,078   
                   
Allowance for loan losses for loans to non-performing loans  246.70%  174.47%  170.99%  135.67%  126.74%   
Non-performing loans to total loans  0.43%  0.62%  0.60%  0.75%  0.85%   
Non-performing assets to total assets  0.44%  0.60%  0.60%  0.71%  0.81%   
                   
                   
(1)  Calculation of this metric and the reconciliation to GAAP is included in the schedules accompanying this release.
  
         

 

 Home BancShares, Inc. 
 Consolidated Net Interest Margin 
 (Unaudited) 
         
   Three Months Ended 
   December 31, 2017   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 $  225,889 $  736 1.29% $  180,368 $  538 1.18%
Federal funds sold    21,580    1 0.02%    878    3 1.36%
Investment securities - taxable    1,504,433    7,793 2.06%    1,326,117    7,071 2.12%
Investment securities - non-taxable - FTE    352,690    4,905 5.52%    348,920    4,908 5.58%
Loans receivable - FTE    10,234,713    147,529 5.72%    7,938,716    113,239 5.66%
Total interest-earning assets    12,339,305    160,964 5.18%    9,794,999    125,759 5.09%
Non-earning assets    1,774,631          1,058,560      
Total assets $ 14,113,936       $ 10,853,559      
                   
LIABILITIES AND SHAREHOLDERS' EQUITY                  
Liabilities                  
Interest-bearing liabilities                  
Savings and interest-bearing transaction accounts $  6,329,858 $  9,732 0.61% $  4,512,785 $  5,755 0.51%
Time deposits    1,532,201    3,214 0.83%    1,444,662    2,780 0.76%
Total interest-bearing deposits    7,862,059    12,946 0.65%    5,957,447    8,535 0.57%
Federal funds purchased    304    1 1.31%    -     -  0.00%
Securities sold under agreement to repurchase    149,849    325 0.86%    135,855    232 0.68%
FHLB borrowed funds    1,005,989    3,806 1.50%    920,754    3,408 1.47%
Subordinated debentures    367,935    4,934 5.32%    358,347    4,969 5.50%
Total interest-bearing liabilities    9,386,136    22,012 0.93%    7,372,403    17,144 0.92%
Non-interest bearing liabilities                  
Non-interest bearing deposits    2,473,853      1,924,933  
Other liabilities    35,398      42,394  
Total liabilities    11,895,387      9,339,730  
Shareholders' equity    2,218,549      1,513,829  
Total liabilities and shareholders' equity $ 14,113,936   $ 10,853,559  
Net interest spread   4.25%    4.17%
Net interest income and margin - FTE   $  138,952 4.47%   $  108,615 4.40%
                 

 

 Home BancShares, Inc.  
 Consolidated Net Interest Margin  
 (Unaudited)  
          
   Year Ended  
   December 31, 2017 
  December 31, 2016 
 
   Average 
  Income/ 
  Yield/ 
  Average 
  Income/ 
  Yield/ 
 
 (Dollars in thousands)   Balance 
  Expense 
  Rate 
  Balance 
  Expense 
  Rate 
 
                    
ASSETS                   
Earning assets                   
Interest-bearing balances due from banks $220,231 $2,309 1.05% $117,022 $471 0.40% 
Federal funds sold  6,308  10 0.16%  1,764  9 0.51% 
Investment securities - taxable  1,300,384  26,776 2.06%  1,161,428  21,246 1.83% 
Investment securities - non-taxable - FTE  348,865  19,411 5.56%  337,318  18,598 5.51% 
Loans receivable - FTE  8,403,154  479,601 5.71%  6,986,759  404,137 5.78% 
Total interest-earning assets  10,278,942  528,107 5.14%  8,604,291  444,461 5.17% 
Non-earning assets  1,220,163        964,562       
Total assets $11,499,105       $9,568,853       
                    
LIABILITIES AND SHAREHOLDERS' EQUITY                   
Liabilities                   
Interest-bearing liabilities                   
Savings and interest-bearing transaction accounts $4,823,626 $23,176 0.48% $3,717,880 $8,978 0.24% 
Time deposits  1,444,828  10,601 0.73%  1,362,680  6,948 0.51% 
Total interest-bearing deposits  6,268,454  33,777 0.54%  5,080,560  15,926 0.31% 
Federal funds purchased  77  1 1.30%  255  2 0.78% 
Securities sold under agreement to repurchase  134,689  918 0.68%  120,576  574 0.48% 
FHLB borrowed funds  1,117,817  14,513 1.30%  1,376,364  12,484 0.91% 
Subordinated debentures  285,733  15,137 5.30%  60,826  1,593 2.62% 
Total interest-bearing liabilities  7,806,770  64,346 0.82%  6,638,581  30,579 0.46% 
Non-interest bearing liabilities                   
Non-interest bearing deposits  2,005,632     1,619,128    
Other liabilities  45,425     53,218    
Total liabilities  9,857,827     8,310,927    
Shareholders' equity  1,641,278     1,257,926    
Total liabilities and shareholders' equity $11,499,105    $9,568,853    
Net interest spread       4.32%       4.71% 
Net interest income and margin - FTE  $463,761 4.51%  $413,882 4.81% 
                    

 

 Home BancShares, Inc.  
 Non-GAAP Reconciliations  
 (Unaudited)  
           
   Quarter Ended
   Year Ended 
  
 (Dollars and shares in thousands,   Dec. 31, 
  Sep. 30, 
  Jun. 30, 
  Mar. 31, 
  Dec. 31, 
   Dec. 31, 
  Dec. 31, 
  
 except per share data)    2017    2017    2017    2017    2016     2017    2016   
                         
EARNINGS EXCLUDING NON-FUNDAMENTAL ITEMS                        
                         
GAAP net income available to common shareholders (A) $23,309 $14,821 $50,097 $46,856 $48,590  $135,083 $177,146  
Non-fundamental items                        
Gain on acquisitions  -  -  -  (3,807) -   (3,807) -  
Merger and acquisition expenses  -  18,227  789  6,727  433   25,743  433  
FDIC loss share buy-out expense  -  -  -  -  -   -  3,849  
Reduced provision for loan losses as a result of a
  significant loan recovery
  -  -  -  -  (4,457)  -  (4,457) 
Hurricane expenses(2)  -  33,445  -  -  -   33,445  -  
Effect of tax rate change    36,935    -     -     -     -      36,935    -   
Total non-fundamental items  36,935  51,672  789  2,920  (4,024)  92,316  (175) 
Tax-effect of non-fundamental items(3)    -     20,045    199    2,382    (1,578)    22,626    (69) 
Non-fundamental items after-tax (B)    36,935    31,627    590    538    (2,446)    69,690    (106) 
Earnings excluding non-fundamental items (C) $  60,244 $  46,448 $  50,687 $  47,394 $  46,144  $  204,773 $  177,040  
                         
Average diluted shares outstanding (D)  174,349  144,987  144,116  142,492  140,781   151,528  140,713  
                         
GAAP diluted earnings per share: A/D $0.13 $0.10 $0.35 $0.33 $0.35  $0.89 $1.26  
Non-fundamental items after-tax: B/D    0.22    0.22    -     -     (0.02)    0.46    -   
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: C/D
 $  0.35 $  0.32 $  0.35 $  0.33 $  0.33  $  1.35 $  1.26  
                         
ANNUALIZED RETURN ON AVERAGE ASSETS                        
                         
 Return on average assets: A/H   0.66% 0.54% 1.86% 1.86% 1.98%  1.17% 1.85% 
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: (A+F)/H
  1.69% 1.70% 1.88% 1.88% 1.88%  1.78% 1.85% 
 Return on average assets excluding intangible
  amortization: (A+C)/(H-I) 
  0.73% 0.59% 1.96% 1.96% 2.08%  1.26% 1.95% 
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 (Core ROA): (A+B+D+E+G)/(H-I)
  3.10% 2.94% 3.19% 3.31% 3.23%  3.13% 3.32% 
           
 GAAP net income available to common shareholders (A)  $  23,309 $  14,821 $  50,097 $  46,856 $  48,590  $  135,083 $  177,146  
 Amortization of intangibles (B)     1,631    906    866    804    762     4,207    3,132  
 Amortization of intangibles after-tax (C)     991    551    526    489    463     2,557    1,903  
 Provision for loan losses excluding hurricane provision (D)     4,926    2,134    387    3,914    1,703     11,361    18,608  
 Total non-fundamental items (E)     36,935    51,672    789    2,920    (4,024)    92,316    (175) 
 Non-fundamental items after-tax (F)     36,935    31,627    590    538    (2,446)    69,690    (106) 
 Income tax expense excluding effect of tax rate change (G)     35,873    7,536    30,282    25,374    29,248     99,065    105,500  
 Average assets (H)     14,113,936    10,853,559    10,793,770    10,198,844    9,777,148     11,499,105    9,568,853  
 Average goodwill, core deposits & other intangible assets (I)     979,209    462,799    442,380    415,699    396,662     576,258    397,809  
           
           
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY          
           
Return on average common equity: A/C  4.17% 3.88% 13.83% 13.85% 14.79%  8.23% 14.08% 
Return on average tangible common equity
  excluding intangible amortization: (A+B)/(C-D)
  7.78% 5.80% 20.09% 20.08% 21.45%  12.92% 20.82% 
           
           
GAAP net income available to common shareholders (A) $23,309 $14,821 $50,097 $46,856 $48,590  $135,083 $177,146  
Amortization of intangibles after-tax (B)  991  551  526  489  463   2,557  1,903  
Average common equity (C)  2,218,549  1,513,829  1,453,099  1,371,730  1,306,571   1,641,278  1,257,926  
Average goodwill, core deposits & other intangible assets (D)  979,209  462,799  442,380  415,699  396,662   576,258  397,809  
           
           
 (2)  Hurricane expenses includes $32,889 of provision for loan losses and $556 of damage expense related to Hurricane Irma.  
 (3)  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
   Year Ended 
   
 (Dollars and shares in thousands,   Dec. 31, 
  Sep. 30, 
  Jun. 30, 
  Mar. 31, 
  Dec. 31, 
   Dec. 31, 
  Dec. 31, 
   
 except per share data)    2017    2017    2017    2017    2016     2017    2016    
                          
EFFICIENCY RATIO                         
                          
Efficiency ratio:  ((C-E)/(A+B+D))  37.05% 53.77% 37.48% 40.76% 36.19%  41.89% 37.65%  
Core efficiency ratio:  ((C-E-G)/(A+B+D-F))  37.35% 39.12% 37.29% 36.96% 35.97%  37.66% 36.55%  
                          
Net interest income (A) $136,969 $106,769 $107,352 $104,815 $103,207  $455,905 $405,958   
Non-interest income (B)  27,292  21,457  24,417  26,470  23,828   99,636  87,051   
Non-interest expense (C)  63,218  70,846  51,003  55,141  47,494   240,208  191,755   
Fully taxable equivalent adjustment (D)  1,983  1,846  2,016  2,011  2,108   7,856  7,924   
Amortization of intangibles (E)  1,631  906  866  804  762   4,207  3,132   
                          
Non-core items:                         
Non-interest income:                         
Gain on acquisition $- $- $- $3,807 $-  $3,807 $-   
Gain (loss) on OREO  176  335  393  121  159   1,025  (554)  
Gain (loss) on SBA loans  -  163  387  188  645   738  1,088   
Gain (loss) on branches, equipment and other assets, net  2  (1,337) 431  (56) (1)  (960) 700   
Gain (loss) on securities  1,193  136  380  423  644   2,132  669   
Recoveries on historic losses  -  -  -  -  -   -  925   
Total non-core non-interest income (F) $  1,371 $  (703)$  1,591 $  4,483 $  1,447  $  6,742 $  2,828   
                          
 Non-interest expense:                          
 Merger Expenses  $  -  $  18,227 $  789 $  6,727 $  433  $  25,743 $  433   
 FDIC loss share buy-out     -     -     -     -     -      -     3,849   
 Hurricane damage expense     -     556    -     -     -      556    -    
 Vacant properties write-downs     -     -     47    -     369     47    2,283   
Total non-core non-interest expense (G) $  -  $  18,783 $  836 $  6,727 $  802  $  26,346 $  6,565   
                          
                          
ANNUALIZED NET INTEREST MARGIN                         
                          
 Net interest margin: A/C   4.47% 4.40% 4.50% 4.70% 4.75%  4.51% 4.81%  
 Net interest margin (non-GAAP): B/D   4.01% 4.07% 4.11% 4.32% 4.31%  4.12% 4.26%  
                          
 Net interest income - FTE (A)  $  138,952 $  108,615 $  109,368 $  106,826 $  105,315  $  463,761 $  413,882   
 Total purchase accounting accretion     12,397    7,174    8,497    7,652    8,659     35,720    42,343   
 Net interest income - FTE (non-GAAP) (B)  $  126,555 $  101,441 $  100,871 $  99,174 $  96,656  $  428,041 $  371,539   
                          
 Average interest-earning assets (C)  $ 12,339,305 $  9,794,999 $  9,737,949 $  9,214,498 $  8,824,468  $ 10,278,942 $  8,604,291   
 Average purchase accounting loan discounts     178,027    97,978    104,384    102,906    104,783     120,160    127,210   
 Average interest-earning assets (non-GAAP) (D)  $ 12,517,332 $  9,892,977 $  9,842,333 $  9,317,404 $  8,929,251  $ 10,399,102 $  8,731,501   
                          

 

 Home BancShares, Inc. 
 Non-GAAP Reconciliations 
 (Unaudited) 
      
   Dec. 31,    Sep. 30,    Jun. 30,    Mar. 31,    Dec. 31,  
 (Dollars in thousands)   2017    2017    2017    2017    2016  
                
TANGIBLE BOOK VALUE PER COMMON SHARE               
                
 Book value per common share: A/B $  12.70 $  12.71 $  10.32 $  10.05 $  9.45 
 Tangible book value per common share: (A-C-D)/B    7.07    7.06    7.23    6.96    6.63 
      
 Total stockholders' equity (A) $  2,204,291 $  2,206,716 $  1,476,032 $  1,441,568 $  1,327,490 
 End of period common shares outstanding (B)    173,633    173,666    143,071    143,442    140,472 
 Goodwill (C) $  927,949 $  929,129 $  420,941 $  420,941 $  377,983 
 Core deposit and other intangibles (D)    49,351    50,982    21,019    21,885    18,311 
      
      
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS     
      
 Equity to assets: B/A  15.25% 15.48% 13.58% 13.45% 13.53%
 Tangible common equity to tangible assets: (B-C-D)/(A-C-D)  9.11% 9.24% 9.91% 9.72% 9.89%
    -     -     -     -     -  
 Total assets (A) $  14,449,760 $  14,255,967 $  10,872,228 $  10,717,468 $  9,808,465 
 Total stockholders' equity (B)    2,204,291    2,206,716    1,476,032    1,441,568    1,327,490 
 Goodwill (C)    927,949    929,129    420,941    420,941    377,983 
 Core deposit and other intangibles (D)    49,351    50,982    21,019    21,885    18,311 
      

FOR MORE INFORMATION CONTACT:

Jennifer C. Floyd 
Chief Accounting Officer &  
Investor Relations Officer 
Home BancShares, Inc. 
(501) 339-2929

 

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