CONWAY, Ark., Jan. 16, 2020 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, released fourth quarter earnings today revealing four consecutive quarters of increased profitability.

Highlights of the Fourth Quarter of 2019:

Metric	Q4 2019	Q3 2019	Q2 2019	Q1 2019	Q4 2018
Net Income	$73.3 million	$72.8 million	$72.2 million	$71.4 million	$71.0 million
Total Revenue (net)	$167.8 million	$167.7 million	$164.1 million	$163.1 million	$163.8 million
ROA	1.94%	1.93%	1.92%	1.92%	1.90%
NIM	4.24%	4.32%	4.28%	4.30%	4.30%
Purchase Accounting Accretion	$9.1 million	$8.5 million	$9.2 million	$9.1 million	$9.4 million
ROE	11.71%	11.84%	12.18%	12.34%	12.05%
ROTCE (non-GAAP)(1)	19.55%	20.04%	21.01%	21.53%	21.08%
Diluted Earnings Per Share	$0.44	$0.44	$0.43	$0.42	$0.41
Non-Performing Assets to Total Assets	0.43%	0.45%	0.51%	0.52%	0.51%
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.

“I am very pleased with our fourth quarter results as well as our performance for all of 2019,” said John Allison, Chairman. “Increasing our profitability during a year of fluctuating interest rates is certainly an accomplishment to be proud of,” continued Allison.

“Our steady increase in two key banking metrics: diluted earnings per share and return on assets, showcase the solid foundation of Home BancShares,” said Tracy French, Centennial Bank President and Chief Executive Officer.

 Operating Highlights

Our net interest margin was 4.24% for the three-month period ended December 31, 2019 compared to 4.32% for the three-month period ended September 30, 2019. The yield on loans was 5.90% and 6.08% for the three months ended December 31, 2019 and September 30, 2019, respectively, as average loans decreased from $10.94 billion to $10.87 billion. Additionally, the rate on interest bearing deposits decreased to 1.21% as of December 31, 2019 from 1.36% as of September 30, 2019, with average balances of $8.82 billion and $8.64 billion, respectively. 

From the third quarter of 2019 to the fourth quarter of 2019, we experienced a $468,000 increase in investment premium amortization primarily resulting from increased prepayment speeds on investment securities due to the declining interest rate environment. This increased investment premium amortization negatively impacted the net interest margin for the quarter ended December 31, 2019 by 1.4 basis points.

During the third quarter of 2019, we had several interest income events primarily related to large payoffs.  These events totaled $2.8 million of interest income and increased the net interest margin by 8.4 basis points for the third quarter of 2019. During the fourth quarter of 2019, event interest income was $549,000 which increased the net interest margin by 1.7 basis points.  The lower event interest income from the third quarter of 2019 to the fourth quarter of 2019 resulted in a 6.7 basis point decline for the margin.

For the three months ended December 31, 2019 and September 30, 2019, we recognized $9.1 million and $8.5 million, respectively, in total net accretion for acquired loans and deposits. The $671,000 increase in accretion income increased the net interest margin by 2.0 basis points for the fourth quarter of 2019.

Purchase accounting accretion on acquired loans was $9.1 million and $8.4 million and average purchase accounting loan discounts were $91.9 million and $112.6 million for the three-month periods ended December 31, 2019 and September 30, 2019, respectively. Net amortization of time deposit premiums was $30,000 per quarter and net average remaining CD premiums were $266,000 and $297,000 for the three-month periods ended December 31, 2019 and September 30, 2019, respectively.

Net interest income on a fully taxable equivalent basis decreased $3.1 million, or 2.16%, to $141.1 million for the three-month period ended December 31, 2019, from $144.2 million for the three-month period ended September 30, 2019. This decrease in net interest income for the three-month period ended December 31, 2019 was the result of a $6.9 million decrease in interest income which was partially offset by a $3.8 million decrease in interest expense. The $6.9 million decrease in interest income was primarily the result of a $6.3 million decrease in loan interest income, a $490,000 decrease in investment income and a $119,000 decrease in income on deposits with other banks. The $3.8 million decrease in interest expense was primarily the result of a $2.7 million decrease in interest expense on deposits. This decrease was the result of a $2.2 million decrease in interest expense on savings and interest-bearing transaction accounts and a $534,000 decrease in interest expense on time deposits.

During the fourth quarter of 2019, no provision for loan loss was recorded. The Company continued to see strong asset quality. Non-performing loans to total loans was 0.50% as of December 31, 2019 compared to 0.54% as of September 30, 2019, an improvement of 7.26%. Non-performing assets to total assets improved by 5.63% from 0.45% as of September 30, 2019 to 0.43% as of December 31, 2019. For the fourth quarter of 2019, net charge-offs were $2.2 million compared to net charge-offs of $1.8 million for the third quarter of 2019.

The Company reported $28.0 million of non-interest income for the fourth quarter of 2019, compared to $24.7 million for the third quarter of 2019. The most important components of the fourth quarter non-interest income were $10.6 million from other service charges and fees, $6.8 million from service charges on deposits accounts, $3.8 million from mortgage lending income, $2.5 million from other income and $2.0 million from dividends from FHLB, FRB, FNBB & other equity investments. Non-interest income for the fourth quarter of 2019 includes $861,000 in dividends related to a special dividend from an equity investment.

Non-interest expense for the fourth quarter of 2019 was $71.3 million compared to $67.8 million for the third quarter of 2019. The most important components of the fourth quarter non-interest expense were $38.4 million from salaries and employee benefits, $19.9 million in other expense and $8.7 million in occupancy and equipment expenses. For the fourth quarter of 2019, our efficiency ratio was 41.26%. 

Non-interest expense for the fourth quarter of 2019 included $631,000 in other professional fees related to an outsourced special project, and non-interest expense for the third quarter of 2019 included a $2.3 million FDIC small bank assessment credit.

Financial Condition

Total loans receivable were $10.87 billion at December 31, 2019 compared to $11.07 billion at December 31, 2018. Total deposits were $11.28 billion at December 31, 2019 compared to $10.90 billion at December 31, 2018. Total assets were $15.03 billion at December 31, 2019 compared to $15.30 billion at December 31, 2018.

During the fourth quarter 2019, the Company experienced approximately $97.8 million in organic loan growth. Centennial CFG experienced $99.4 million of organic loan growth and had loans of $1.60 billion at December 31, 2019. Our legacy footprint experienced $1.7 million in organic loan decline during the quarter.  

Non-performing loans at December 31, 2019 were $17.9 million, $34.7 million, $429,000, $1.8 million and zero in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $54.8 million. Non-performing assets at December 31, 2019 were $22.9 million, $39.2 million, $463,000, $1.8 million and zero in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $64.4 million. 

The Company’s allowance for loan losses was $102.1 million at December 31, 2019, or 0.94% of total loans, compared to $108.8 million, or 0.98% of total loans, at December 31, 2018. As of December 31, 2019, and December 31, 2018, the Company’s allowance for loan losses was 186.2% and 169.4% of its total non-performing loans, respectively.

Stockholders’ equity was $2.51 billion at December 31, 2019 compared to $2.35 billion at December 31, 2018, an increase of approximately $161.6 million. The increase in stockholders’ equity is primarily associated with the $204.4 million increase in retained earnings and the $30.0 million increase in accumulated other comprehensive income which were partially offset by the repurchase of $84.9 million of our common stock during 2019.  Book value per common share was $15.10 at December 31, 2019 compared to $13.76 at December 31, 2018.  Tangible book value per common share (non-GAAP) was $9.12 at December 31, 2019 compared to $7.90 at December 31, 2018, an increase of 15.4%. 

Branches

The Company currently has 77 branches in Arkansas, 78 branches in Florida, 5 branches in Alabama and one branch in New York City.

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, January 16, 2020.  We encourage all participants to pre-register for the conference call using the following link:  http://dpregister.com/10137496.  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: 10137496, which will be available until January 23, 2020 at 10:59 p.m. CT (11:59 p.m. ET).  Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com under “Investor Relations” for 12 months.

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; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity, as adjusted; 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.  Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

General

This release may contain forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements.  These factors include, but are not limited to, the following:  economic conditions, credit quality, interest rates, loan demand, the ability to successfully integrate new acquisitions, legislative and regulatory changes and risks associated with current and future regulations, 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, 2018 filed with the SEC on February 26, 2019.

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)
			Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,
(In thousands)			2019				2019				2019				2019				2018
ASSETS
Cash and due from banks		$	168,914			$	171,492			$	183,745			$	141,027			$	175,024
Interest-bearing deposits with other banks			321,687				270,804				373,557				421,443				482,915
Cash and cash equivalents			490,601				442,296				557,302				562,470				657,939
Federal funds sold			-				1,650				1,075				1,700				325
Investment securities - available-for-sale			2,083,838				2,087,508				2,053,939				2,013,123				1,785,862
Investment securities - held-to-maturity			-				-				-				-				192,776
Loans receivable			10,869,710				10,771,946				11,053,129				10,978,935				11,071,879
Allowance for loan losses			(102,122	)			(104,304	)			(106,066	)			(106,357	)			(108,791	)
Loans receivable, net			10,767,588				10,667,642				10,947,063				10,872,578				10,963,088
Bank premises and equipment, net			280,103				277,966				278,821				279,012				233,261
Foreclosed assets held for sale			9,143				8,639				13,734				14,466				13,236
Cash value of life insurance			102,562				102,003				149,708				149,353				148,621
Accrued interest receivable			45,086				47,557				48,992				50,288				48,945
Deferred tax asset, net			44,301				53,436				58,517				64,061				73,275
Goodwill			958,408				958,408				958,408				958,408				958,408
Core deposit and other intangibles			36,572				38,136				39,723				41,310				42,896
Other assets			213,845				216,694				180,293				172,732				183,806
Total assets		$	15,032,047			$	14,901,935			$	15,287,575			$	15,179,501			$	15,302,438
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing		$	2,367,091			$	2,394,207			$	2,575,696			$	2,519,175			$	2,401,232
Savings and interest-bearing transaction accounts			6,933,964				6,620,616				6,774,162				6,650,181				6,624,407
Time deposits			1,977,328				2,032,547				1,997,458				1,898,096				1,874,139
Total deposits			11,278,383				11,047,370				11,347,316				11,067,452				10,899,778
Federal funds purchased			5,000				50,000				-				-				-
Securities sold under agreements to repurchase			143,727				157,038				142,541				152,239				143,679
FHLB and other borrowed funds			621,439				691,443				899,447				1,105,175				1,472,393
Accrued interest payable and other liabilities			102,410				117,332				107,695				124,172				67,912
Subordinated debentures			369,557				369,363				369,170				368,979				368,790
Total liabilities			12,520,516				12,432,546				12,866,169				12,818,017				12,952,552
Stockholders' equity
Common stock			1,664				1,669				1,675				1,682				1,707
Capital surplus			1,537,091				1,542,858				1,550,999				1,560,994				1,609,810
Retained earnings			956,555				904,980				853,964				803,629				752,184
Accumulated other comprehensive (loss) income			16,221				19,882				14,768				(4,821	)			(13,815	)
Total stockholders' equity			2,511,531				2,469,389				2,421,406				2,361,484				2,349,886
Total liabilities and stockholders' equity		$	15,032,047			$	14,901,935			$	15,287,575			$	15,179,501			$	15,302,438

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)			2019				2019			2019				2019			2018				2019				2018
Interest income
Loans		$	161,211			$	167,470		$	165,816			$	163,848		$	163,201			$	658,345			$	630,596
Investment securities
Taxable			9,707				10,343			10,650				10,706			9,873				41,406				36,833
Tax-exempt			3,260				3,193			3,183				3,379			3,456				13,015				13,257
Deposits - other banks			949				1,068			1,628				1,543			1,241				5,188				4,649
Federal funds sold			5				8			10				11			9				34				33
Total interest income			175,132				182,082			181,287				179,487			177,780				717,988				685,368
Interest expense
Interest on deposits			26,823				29,566			29,709				28,006			25,207				114,104				79,589
Federal funds purchased			33				21			-				-			-				54				1
FHLB borrowed funds			2,686				3,683			4,722				6,118			6,474				17,209				22,354
Securities sold under agreements to repurchase			652				628			630				634			602				2,544				1,822
Subordinated debentures			5,155				5,207			5,239				5,259			5,215				20,860				20,589
Total interest expense			35,349				39,105			40,300				40,017			37,498				154,771				124,355
Net interest income			139,783				142,977			140,987				139,470			140,282				563,217				561,013
Provision for loan losses			-				-			1,325				-			-				1,325				4,322
Net interest income after
provision for loan losses			139,783				142,977			139,662				139,470			140,282				561,892				556,691
Non-interest income
Service charges on deposit accounts			6,778				6,492			6,259				6,401			7,004				25,930				26,851
Other service charges and fees			10,636				8,710			8,177				6,563			7,598				34,086				36,591
Trust fees			390				382			391				403			290				1,566				1,552
Mortgage lending income			3,801				4,610			3,457				2,435			2,554				14,303				12,379
Insurance commissions			551				603			515				609			442				2,278				2,110
Increase in cash value of life insurance			562				714			740				736			737				2,752				2,856
Dividends from FHLB, FRB, FNBB & other			1,952				1,101			1,149				3,505			1,992				7,707				5,757
Gain (loss) on SBA loans			686				291			355				241			75				1,573				566
Gain (loss) on branches, equipment and
other assets, net			35				12			(129	)			79			(25	)			(3	)			(120	)
Gain (loss) on OREO, net			159				334			58				206			114				757				2,401
Gain (loss) on securities, net			(2	)			-			-				-			-				(2	)			-
Other income			2,481				1,500			2,094				2,494			2,726				8,569				11,889
Total non-interest income			28,029				24,749			23,066				23,672			23,507				99,516				102,832
Non-interest expense
Salaries and employee benefits			38,446				39,919			37,976				37,836			36,230				154,177				143,545
Occupancy and equipment			8,729				9,047			8,853				8,823			8,310				35,452				33,960
Data processing expense			4,294				4,059			3,838				3,970			3,642				16,161				14,428
Other operating expenses			19,873				14,739			16,957				18,428			23,090				69,997				72,070
Total non-interest expense			71,342				67,764			67,624				69,057			71,272				275,787				264,003
Income before income taxes			96,470				99,962			95,104				94,085			92,517				385,621				395,520
Income tax expense			23,208				27,199			22,940				22,735			21,487				96,082				95,117
Net income		$	73,262			$	72,763		$	72,164			$	71,350		$	71,030			$	289,539			$	300,403

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)			2019				2019				2019				2019				2018				2019				2018
PER SHARE DATA
Diluted earnings per common share		$	0.44			$	0.44			$	0.43			$	0.42			$	0.41			$	1.73			$	1.73
Diluted earnings per common share, as adjusted, excluding special dividend from equity investment, outsourced special project expense, FDIC Small Bank Assessment Credit, Florida tax savings, BOLI redemption tax, merger expenses & hurricane expenses (non-GAAP)(1)			0.44				0.44				0.43				0.42				0.44				1.73				1.75
Basic earnings per common share			0.44				0.44				0.43				0.42				0.41				1.73				1.73
Dividends per share - common			0.1300				0.1300				0.1300				0.1200				0.1200				0.5100				0.4600
Book value per common share			15.10				14.80				14.46				14.04				13.76				15.10				13.76
Tangible book value per common share (non-GAAP)(1)			9.12				8.83				8.50				8.10				7.90				9.12				7.90
STOCK INFORMATION
Average common shares outstanding			166,696				167,178				167,791				169,592				173,023				167,804				173,657
Average diluted shares outstanding			166,696				167,178				167,791				169,592				173,311				167,804				174,124
End of period common shares outstanding			166,373				166,860				167,466				168,173				170,720				166,373				170,720
ANNUALIZED PERFORMANCE METRICS
Return on average assets			1.94	%			1.93	%			1.92	%			1.92	%			1.90	%			1.93	%			2.06	%
Return on average assets excluding special dividend from equity investment, outsourced special project expense, FDIC Small Bank Assessment Credit, Florida tax savings, BOLI redemption tax, merger expenses & hurricane expenses (ROA, as adjusted) (non-GAAP)(1)			1.94	%			1.96	%			1.92	%			1.92	%			2.03	%			1.94	%			2.10	%
Return on average assets excluding intangible amortization (non-GAAP)(1)			2.12	%			2.10	%			2.09	%			2.09	%			2.07	%			2.10	%			2.25	%
Return on average common equity			11.71	%			11.84	%			12.18	%			12.34	%			12.05	%			12.01	%			13.17	%
Return on average common equity excluding special dividend from equity investment, outsourced special project expense, FDIC Small Bank Assessment Credit, Florida tax savings, BOLI redemption tax, merger expenses & hurricane expenses: (ROE, as adjusted) (non-GAAP)(1)			11.68	%			12.08	%			12.22	%			12.34	%			12.86	%			12.07	%			13.38	%
Return on average tangible common equity (non-GAAP)(1)			19.55	%			20.04	%			21.01	%			21.53	%			21.08	%			20.49	%			23.25	%
Return on average tangible common equity excluding intangible amortization (non-GAAP)(1)			19.86	%			20.36	%			21.35	%			21.88	%			21.43	%			20.83	%			23.62	%
Return on average tangible common equity excluding special dividend from equity investment, outsourced special project expense, FDIC Small Bank Assessment Credit, Florida tax savings, BOLI redemption tax, merger expenses & hurricane expenses: (ROTCE, as adjusted) (non-GAAP)(1)			19.51	%			20.45	%			21.08	%			21.53	%			22.50	%			20.60	%			23.62	%
Efficiency ratio			41.26	%			39.16	%			39.93	%			41.01	%			42.18	%			40.34	%			38.48	%
Efficiency ratio, as adjusted (non-GAAP)(1)			41.14	%			40.60	%			39.92	%			40.52	%			38.28	%			40.55	%			37.64	%
Net interest margin - FTE			4.24	%			4.32	%			4.28	%			4.30	%			4.30	%			4.29	%			4.42	%
Fully taxable equivalent adjustment		$	1,322			$	1,247			$	1,319			$	1,367			$	1,412			$	5,255			$	5,513
Total revenue (net)			167,812				167,726				164,053				163,142				163,789				662,733				663,845
Total purchase accounting accretion			9,133				8,462				9,240				9,055				9,432				35,890				41,455
Average purchase accounting loan discounts			91,869				112,623				122,197				131,596				141,244				114,521				152,948
OTHER OPERATING EXPENSES
Advertising		$	1,340			$	1,201			$	1,095			$	1,051			$	1,214			$	4,687			$	4,472
Merger and acquisition expenses			-				-				-				-				6,013				-				6,013
Amortization of intangibles			1,565				1,587				1,587				1,586				1,587				6,325				6,455
Electronic banking expense			1,870				1,901				1,851				1,903				1,969				7,525				7,622
Directors' fees			396				380				392				434				319				1,602				1,281
Due from bank service charges			289				272				282				238				289				1,081				1,003
FDIC and state assessment			1,635				(532	)			1,655				1,710				1,869				4,468				8,558
Hurricane expense			-				-				-				897				470				897				470
Insurance			790				698				661				697				737				2,846				3,100
Legal and accounting			1,633				1,414				989				981				1,151				5,017				3,548
Other professional fees			3,189				1,906				2,306				2,812				1,465				10,213				6,453
Operating supplies			469				511				505				536				510				2,021				2,222
Postage			327				320				293				326				325				1,266				1,303
Telephone			312				289				306				303				324				1,210				1,405
Other expense			6,058				4,792				5,035				4,954				4,848				20,839				18,165
Total other operating expenses		$	19,873			$	14,739			$	16,957			$	18,428			$	23,090			$	69,997			$	72,070
(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)
			Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,
(Dollars in thousands)			2019				2019				2019				2019				2018
BALANCE SHEET RATIOS
Total loans to total deposits			96.38	%			97.51	%			97.41	%			99.20	%			101.58	%
Common equity to assets			16.71	%			16.57	%			15.84	%			15.56	%			15.36	%
Tangible common equity to tangible assets (non-GAAP)(1)			10.80	%			10.59	%			9.96	%			9.60	%			9.43	%
LOANS RECEIVABLE
Real estate
Commercial real estate loans
Non-farm/non-residential		$	4,412,769			$	4,375,970			$	4,495,558			$	4,623,174			$	4,806,684
Construction/land development			1,776,689				1,827,454				1,930,838				1,649,303				1,546,035
Agricultural			88,400				87,087				85,045				76,092				76,433
Residential real estate loans
Residential 1-4 family			1,819,221				1,808,099				1,852,784				1,947,119				1,975,586
Multifamily residential			488,278				498,079				523,789				538,098				560,475
Total real estate			8,585,357				8,596,689				8,888,014				8,833,786				8,965,213
Consumer			511,909				469,741				455,554				448,093				443,105
Commercial and industrial			1,528,003				1,479,724				1,515,357				1,505,773				1,476,331
Agricultural			63,644				90,343				80,621				58,966				48,562
Other			180,797				135,449				113,583				132,317				138,668
Loans receivable		$	10,869,710			$	10,771,946			$	11,053,129			$	10,978,935			$	11,071,879
			-				-				-				-				-
Discount for credit losses on purchased loans		$	58,719			$	89,615			$	98,672			$	106,617			$	113,648
Purchased loans, net of discount for credit losses on purchased loans			1,985,241				2,227,386				2,469,579				2,712,315				2,900,284
ALLOWANCE FOR LOAN LOSSES
Balance, beginning of period		$	104,304			$	106,066			$	106,357			$	108,791			$	110,191
Loans charged off			2,631				2,302				2,279				3,391				1,814
Recoveries of loans previously charged off			449				540				663				957				414
Net loans (recovered)/charged off			2,182				1,762				1,616				2,434				1,400
Provision for loan losses			-				-				1,325				-				-
Balance, end of period		$	102,122			$	104,304			$	106,066			$	106,357			$	108,791
			-				-				-				-				-
Net (recoveries) charge-offs to average total loans			0.08	%			0.06	%			0.06	%			0.09	%			0.05	%
Allowance for loan losses to total loans			0.94	%			0.97	%			0.96	%			0.97	%			0.98	%
NON-PERFORMING ASSETS
Non-performing loans
Non-accrual loans		$	47,607			$	48,640			$	52,841			$	49,616			$	47,083
Loans past due 90 days or more			7,238				9,964				9,961				14,577				17,159
Total non-performing loans			54,845				58,604				62,802				64,193				64,242
Other non-performing assets
Foreclosed assets held for sale, net			9,143				8,639				13,734				14,466				13,236
Other non-performing assets			447				447				947				947				497
Total other non-performing assets			9,590				9,086				14,681				15,413				13,733
Total non-performing assets		$	64,435			$	67,690			$	77,483			$	79,606			$	77,975
Allowance for loan losses for loans to non-performing loans			186.20	%			177.98	%			168.89	%			165.68	%			169.35	%
Non-performing loans to total loans			0.50	%			0.54	%			0.57	%			0.58	%			0.58	%
Non-performing assets to total assets			0.43	%			0.45	%			0.51	%			0.52	%			0.51	%
(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, 2019									September 30, 2019
		Average				Income/		Yield/				Average			Income/		Yield/
(Dollars in thousands)		Balance				Expense		Rate				Balance			Expense		Rate
ASSETS
Earning assets
Interest-bearing balances due from banks		$	234,159		$	949		1.61	%		$	213,671		$	1,068		1.98	%
Federal funds sold			1,158			5		1.71	%			1,442			8		2.20	%
Investment securities - taxable			1,710,192			9,707		2.25	%			1,705,647			10,343		2.41	%
Investment securities - non-taxable - FTE			376,613			4,285		4.51	%			370,376			4,139		4.43	%
Loans receivable - FTE			10,866,386			161,508		5.90	%			10,944,638			167,771		6.08	%
Total interest-earning assets			13,188,508			176,454		5.31	%			13,235,774			183,329		5.50	%
Non-earning assets			1,755,860									1,757,458
Total assets		$	14,944,368								$	14,993,232
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts		$	6,792,252		$	17,406		1.02	%		$	6,629,491		$	19,615		1.17	%
Time deposits			2,025,032			9,417		1.84	%			2,014,630			9,951		1.96	%
Total interest-bearing deposits			8,817,284			26,823		1.21	%			8,644,121			29,566		1.36	%
Federal funds purchased			6,684			33		1.96	%			4,801			21		1.74	%
Securities sold under agreement to repurchase			159,719			652		1.62	%			143,628			628		1.73	%
FHLB borrowed funds			562,963			2,686		1.89	%			748,577			3,683		1.95	%
Subordinated debentures			369,462			5,155		5.54	%			369,269			5,207		5.59	%
Total interest-bearing liabilities			9,916,112			35,349		1.41	%			9,910,396			39,105		1.57	%
Non-interest bearing liabilities
Non-interest bearing deposits			2,433,384									2,530,664
Other liabilities			112,466									114,352
Total liabilities			12,461,962									12,555,412
Shareholders' equity			2,482,406									2,437,820
Total liabilities and shareholders' equity		$	14,944,368								$	14,993,232
Net interest spread								3.90	%								3.93	%
Net interest income and margin - FTE					$	141,105		4.24	%					$	144,224		4.32	%

Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
		Year Ended
		December 31, 2019									December 31, 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		$	254,548		$	5,188		2.04	%		$	265,071		$	4,649		1.75	%
Federal funds sold			1,421			34		2.39	%			2,876			33		1.15	%
Investment securities - taxable			1,663,512			41,406		2.49	%			1,542,188			36,833		2.39	%
Investment securities - non-taxable - FTE			379,232			17,026		4.49	%			386,790			17,434		4.51	%
Loans receivable - FTE			10,961,599			659,589		6.02	%			10,618,796			631,932		5.95	%
Total interest-earning assets			13,260,312			723,243		5.45	%			12,815,721			690,881		5.39	%
Non-earning assets			1,768,188									1,751,492
Total assets		$	15,028,500								$	14,567,213
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts		$	6,674,493		$	77,194		1.16	%		$	6,418,186		$	58,199		0.91	%
Time deposits			1,972,040			36,910		1.87	%			1,645,986			21,390		1.30	%
Total interest-bearing deposits			8,646,533			114,104		1.32	%			8,064,172			79,589		0.99	%
Federal funds purchased			2,895			54		1.87	%			31			1		3.23	%
Securities sold under agreement to repurchase			149,665			2,544		1.70	%			148,327			1,822		1.23	%
FHLB borrowed funds			848,969			17,209		2.03	%			1,180,897			22,354		1.89	%
Subordinated debentures			369,175			20,860		5.65	%			368,409			20,589		5.59	%
Total interest-bearing liabilities			10,017,237			154,771		1.55	%			9,761,836			124,355		1.27	%
Non-interest bearing liabilities
Non-interest bearing deposits			2,489,254									2,464,024
Other liabilities			111,156									60,298
Total liabilities			12,617,647									12,286,158
Shareholders' equity			2,410,853									2,281,055
Total liabilities and shareholders' equity		$	15,028,500								$	14,567,213
Net interest spread								3.90	%								4.12	%
Net interest income and margin - FTE					$	568,472		4.29	%					$	566,526		4.42	%

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)			2019				2019				2019				2019				2018				2019				2018
EARNINGS, AS ADJUSTED
GAAP net income available to common shareholders (A)		$	73,262			$	72,763			$	72,164			$	71,350			$	71,030			$	289,539			$	300,403
Pre-tax adjustments
FDIC Small Bank Assessment Credit			-				(2,291	)			-				-				-				(2,291	)			-
Special dividend from equity investment			(861	)			-				-				(2,134	)			-				(2,995	)			-
Merger and acquisition expenses			-				-				-				-				6,013				-				6,013
Hurricane expenses			-				-				-				897				470				897				470
Outsourced special project expense			631				-				-				900				-				1,531				-
Total pre-tax adjustments			(230	)			(2,291	)			-				(337	)			6,483				(2,858	)			6,483
Tax-effect of adjustments			(59	)			(592	)			-				(87	)			1,694				(738	)			1,694
Adjustments after-tax			(171	)			(1,699	)			-				(250	)			4,789		-		(2,120	)			4,789
Florida tax savings			-				(497	)			252				245				-				-				-
BOLI redemption tax			-				3,667				-				-				-				3,667				-
Total adjustments after-tax (B)			(171	)			1,471				252				(5	)			4,789		-		1,547				4,789
Earnings, as adjusted (C)		$	73,091			$	74,234			$	72,416			$	71,345			$	75,819			$	291,086			$	305,192
Average diluted shares outstanding (D)			166,696				167,178				167,791				169,592				173,311				167,804				174,124
GAAP diluted earnings per share: (A/D)		$	0.44			$	0.44			$	0.43			$	0.42			$	0.41			$	1.73			$	1.73
Adjustments after-tax: (B/D)			-				-				-				-				0.03				-				0.02
Diluted earnings per common share excluding special dividend from equity investment, outsourced special project expense, FDIC Small Bank Assessment Credit, Florida tax savings, BOLI redemption tax, merger expenses & hurricane expenses: (C/D)		$	0.44			$	0.44			$	0.43			$	0.42			$	0.44			$	1.73			$	1.75
ANNUALIZED RETURN ON AVERAGE ASSETS
Return on average assets: (A/E)			1.94	%			1.93	%			1.92	%			1.92	%			1.90	%			1.93	%			2.06	%
Return on average assets excluding special dividend from equity investment, outsourced special project expense, FDIC Small Bank Assessment Credit, Florida tax savings, BOLI redemption tax, merger expenses & hurricane expenses: (ROA, as adjusted) ((A+D)/E)			1.94	%			1.96	%			1.92	%			1.92	%			2.03	%			1.94	%			2.10	%
Return on average assets excluding intangible amortization: ((A+C)/(E-F))			2.12	%			2.10	%			2.09	%			2.09	%			2.07	%			2.10	%			2.25	%
GAAP net income available to common shareholders (A)		$	73,262			$	72,763			$	72,164			$	71,350			$	71,030			$	289,539			$	300,403
Amortization of intangibles (B)			1,565				1,587				1,587				1,586				1,587				6,325				6,455
Amortization of intangibles after-tax (C)			1,161				1,177				1,177				1,177				1,172				4,692				4,768
Adjustments after-tax (D)			(171	)			1,471				252				(5	)			4,789				1,547				4,789
Average assets (E)			14,944,368				14,993,232				15,098,600				15,079,672				14,838,979				15,028,500				14,567,213
Average goodwill, core deposits & other intangible assets (F)			995,721				997,309				998,898				1,000,494				1,002,070				998,090				989,033

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)			2019				2019				2019				2019				2018				2019				2018
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY
Return on average common equity: (A/D)			11.71	%			11.84	%			12.18	%			12.34	%			12.05	%			12.01	%			13.17	%
Return on average common equity excluding special dividend from equity investment, outsourced special project expense, FDIC Small Bank Assessment Credit, Florida tax savings, BOLI redemption tax, merger expenses & hurricane expenses: (ROE, as adjusted) ((A+C)/D)			11.68	%			12.08	%			12.22	%			12.34	%			12.86	%			12.07	%			13.38	%
Return on average tangible common equity: (A/(D-E))			19.55	%			20.04	%			21.01	%			21.53	%			21.08	%			20.49	%			23.25	%
Return on average tangible common equity excluding intangible amortization: (B/(D-E))			19.86	%			20.36	%			21.35	%			21.88	%			21.43	%			20.83	%			23.62	%
Return on average tangible common equity excluding special dividend from equity investment, outsourced special project expense, FDIC Small Bank Assessment Credit, Florida tax savings, BOLI redemption tax, merger expenses & hurricane expenses: (ROTCE, as adjusted) ((A+C)/(D-E))			19.51	%			20.45	%			21.08	%			21.53	%			22.50	%			20.60	%			23.62	%
GAAP net income available to common shareholders (A)		$	73,262			$	72,763			$	72,164			$	71,350			$	71,030			$	289,539			$	300,403
Earnings excluding intangible amortization (B)			74,423				73,940				73,341				72,527				72,202				294,231				305,171
Adjustments after-tax (C)			(171	)			1,471				252				(5	)			4,789				1,547				4,789
Average common equity (D)			2,482,406				2,437,820				2,376,718				2,344,657				2,338,802				2,410,853				2,281,055
Average goodwill, core deposits & other intangible assets (E)			995,721				997,309				998,898				1,000,494				1,002,070				998,090				989,033
EFFICIENCY RATIO
Efficiency ratio: ((C-E)/(A+B+D))			41.26	%			39.16	%			39.93	%			41.01	%			42.18	%			40.34	%			38.48	%
Efficiency ratio, as adjusted: ((C-E-G)/(A+B+D-F))			41.14	%			40.60	%			39.92	%			40.52	%			38.28	%			40.55	%			37.64	%
																							-				-
Net interest income (A)		$	139,783			$	142,977			$	140,987			$	139,470			$	140,282			$	563,217			$	561,013
Non-interest income (B)			28,029				24,749				23,066				23,672				23,507				99,516				102,832
Non-interest expense (C)			71,342				67,764				67,624				69,057				71,272				275,787				264,003
Fully taxable equivalent adjustment (D)			1,322				1,247				1,319				1,367				1,412				5,255				5,513
Amortization of intangibles (E)			1,565				1,587				1,587				1,586				1,587				6,325				6,455
Adjustments:
Non-interest income:
Special dividend from equity investment		$	861			$	-			$	-			$	2,134			$	-			$	2,995			$	-
Gain (loss) on OREO			159				334				58				206				114				757				2,401
Gain (loss) on branches, equipment and other assets, net			35				12				(129	)			79				(25	)			(3	)			(120	)
Gain (loss) on securities			(2	)			-				-				-				-				(2	)			-
Total non-interest income adjustments (F)		$	1,053			$	346			$	(71	)		$	2,419			$	89			$	3,747			$	2,281
Non-interest expense:
FDIC Small Bank Assessment Credit		$	-			$	(2,291	)		$	-			$	-			$	-			$	(2,291	)		$	-
Merger Expenses			-				-				-				-				6,013				-				6,013
Hurricane damage expense			-				-				-				897				470				897				470
Outsourced special project expense			631				-				-				900				-				1,531				-
Total non-interest expense adjustments (G)		$	631			$	(2,291	)		$	-			$	1,797			$	6,483			$	137			$	6,483

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
			Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,
(Dollars in thousands)			2019				2019				2019				2019				2018
TANGIBLE BOOK VALUE PER COMMON SHARE
Book value per common share: (A/B)		$	15.10			$	14.80			$	14.46			$	14.04			$	13.76
Tangible book value per common share: ((A-C-D)/B)			9.12				8.83				8.50				8.10				7.90
Total stockholders' equity (A)		$	2,511,531			$	2,469,389			$	2,421,406			$	2,361,484			$	2,349,886
End of period common shares outstanding (B)			166,373				166,860				167,466				168,173				170,720
Goodwill (C)		$	958,408			$	958,408			$	958,408			$	958,408			$	958,408
Core deposit and other intangibles (D)			36,572				38,136				39,723				41,310				42,896
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
Equity to assets: (B/A)			16.71	%			16.57	%			15.84	%			15.56	%			15.36	%
Tangible common equity to tangible assets: ((B-C-D)/(A-C-D))			10.80	%			10.59	%			9.96	%			9.60	%			9.43	%
Total assets (A)		$	15,032,047			$	14,901,935			$	15,287,575			$	15,179,501			$	15,302,438
Total stockholders' equity (B)			2,511,531				2,469,389				2,421,406				2,361,484				2,349,886
Goodwill (C)			958,408				958,408				958,408				958,408				958,408
Core deposit and other intangibles (D)			36,572				38,136				39,723				41,310				42,896