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Happy at HOMB: Third Quarter 2021 Beats on Net Income and EPS With New Nine-Month Record on Both, While Tacking on September Loan Growth
المصدر: Nasdaq GlobeNewswire / 21 أكتوبر 2021 07:15:01 America/Chicago
CONWAY, Ark., Oct. 21, 2021 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ GS: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.
Highlights of the Third Quarter of 2021:
Metric Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Net Income $75.0 million $79.1 million $91.6 million $81.8 million $69.3 million Total Revenue (net) $173.8 million $172.4 million $193.4 million $181.9 million $176.1 million Income (loss) before income taxes $98.2 million $104.1 million $120.5 million $107.7 million $90.4 million Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) $98.2 million $99.4 million $120.5 million $107.7 million $104.4 million Pre-tax net income to total revenue (net) 56.50% 60.42% 62.32% 59.19% 51.32% P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) 56.50% 57.66% 62.32% 59.19% 59.28% ROA 1.68% 1.81% 2.22% 1.97% 1.66% NIM 3.60% 3.61% 4.02% 4.00% 3.92% NIM, excluding PPP loans (non-GAAP)(1) 3.43% 3.54% 3.87% 3.97% 3.98% Purchase Accounting Accretion $4.9 million $5.8 million $5.5 million $5.7 million $7.0 million ROE 10.97% 11.92% 14.15% 12.72% 10.97% ROTCE (non-GAAP)(1) 17.39% 19.12% 22.90% 20.96% 18.29% Diluted Earnings Per Share $0.46 $0.48 $0.55 $0.50 $0.42 Non-Performing Assets to Total Assets 0.29% 0.35% 0.38% 0.48% 0.47% Common Equity Tier 1 Capital 15.2% 15.0% 14.3% 13.4% 12.6% Leverage 11.0% 10.9% 11.1% 10.8% 10.4% Tier 1 Capital 15.8% 15.6% 14.9% 14.0% 13.2% Total Risk-Based Capital 19.6% 19.5% 18.8% 17.8% 16.9% Allowance for Credit Losses to Total Loans 2.41% 2.36% 2.25% 2.19% 2.12% Allowance for Credit Losses to Total Loans, excluding PPP loans (non-GAAP)(1) 2.47% 2.47% 2.40% 2.33% 2.28% (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
“We had a great third quarter and a great first nine months as our company is continuing on to another $300 million plus year for the fourth year in a row. On the Happy HOMB front, there may not have been a better deal done in the last several years, unless it was an MOE or a complete franchise overlap that eliminated almost all of the branches. As a well-known analyst said, ‘HOMB threaded the needle perfectly on this deal.’ The market reaction has been favorable and a nod to the work we put into the structure of a triple accretive deal,” said John Allison, Chairman.
“September saw the first quality loan growth we have seen in some time. Loans recorded an increase of $55 million ex-PPP for the month - couple that with a $250 million increase in unfunded commitments for the quarter, and we are optimistic that quality loans will continue to build. I am personally excited about our partnership with Happy State Bank and am looking forward to working with their team in 2022 and beyond. I could not be happier with this deal as it works for both Happy and HOMB employees and shareholders,” said Tracy French, Centennial Bank President and Chief Executive Officer.
Operating Highlights
Net income for the three-month period ended September 30, 2021 was $75.0 million, or $0.46 earnings per share. Net income for the nine-month period ended September 30, 2021 was $245.7 million, or $1.49 earnings per share, both of which are records for the Company.
During the third quarter of 2021, the Company did not record any credit loss expense. The Company’s provisioning model is closely tied to unemployment rate projections which have continued to improve since the fourth quarter of 2020. The Company determined that an additional provision for credit losses on loans was not necessary as the current level of the allowance for credit losses was considered adequate as of September 30, 2021. In addition, the Company determined that the current level of the unfunded commitment reserve was adequate and no additional provision for unfunded commitments was necessary.
Our net interest margin was 3.60% for the three-month period ended September 30, 2021 compared to 3.61% for the three-month period ended June 30, 2021. The yield on loans was 5.64% and 5.40% for the three months ended September 30, 2021 and June 30, 2021, respectively, as average loans decreased from $10.54 billion to $10.04 billion. Additionally, the rate on interest bearing deposits decreased to 0.23% as of September 30, 2021 from 0.26% as of June 30, 2021, with average balances of $9.86 billion and $9.81 billion, respectively.
As of September 30, 2021, we had $241.5 million of Paycheck Protection Program (PPP) loans outstanding. These loans are at 1.00% plus the accretion of the origination fee. Excluding PPP loans, our net interest margin (non-GAAP) for the three-month period ended September 30, 2021 was 3.43%.(1) The PPP loans were accretive to the net interest margin by 17 basis points for the three-month period ended September 30, 2021 compared to 7 basis points for the three-month period ended June 30, 2021. This was primarily due to approximately $232.4 million of the Company’s PPP loans being forgiven during the third quarter of 2021 as well as the acceleration of deferred fees for the loans that were forgiven. The deferred fee income increased from $6.3 million to $9.3 million for the three-month periods ended June 30, 2021 and September 30, 2021, respectively.
The effects of the COVID-19 pandemic continued to create a significant amount of excess liquidity in the market. As a result of this excess liquidity, we had an increase of $337.7 million of average interest-bearing cash balances in the third quarter of 2021 compared to the second quarter of 2021. This excess liquidity diluted the net interest margin by 8 basis points for the three-month period ended September 30, 2021.
During the third quarter of 2021, there was $3.5 million of event interest income compared to event interest income of $942,000 for the second quarter of 2021. This increased the net interest margin by 6 basis points.
Purchase accounting accretion on acquired loans was $4.9 million and $5.8 million and average purchase accounting loan discounts were $36.5 million and $38.6 million for the three-month periods ended September 30, 2021 and June 30, 2021, respectively. The reduction in accretion income reduced the net interest margin by 2 basis points for the three-month period ended September 30, 2021.
Net interest income on a fully taxable equivalent basis was $146.4 million for the three-month period ended September 30, 2021 and $143.0 million for the three-month period ended June 30, 2021. This increase in net interest income for the three-month period ended September 30, 2021 was the result of a $2.6 million increase in interest income and a $780,000 decrease in interest expense. The $2.6 million increase in interest income was primarily the result of a $1.2 million net increase in investment income, a $911,000 increase in loan interest income, and a $410,000 increase in interest-bearing balances due from banks. The $780,000 decrease in interest expense was primarily the result of a decrease in interest expense on deposits.
The Company reported $29.2 million of non-interest income for the third quarter of 2021. The most important components of the second quarter non-interest income were $8.1 million from other service charges and fees, $5.9 million in mortgage lending income, $5.9 million from service charges on deposit accounts, $4.3 million from other income and $2.7 million from dividends from FHLB, FRB, FNBB and other. Included in the $2.7 million in dividends from FHLB, FRB, FNBB and other were $2.2 million in special dividends from equity investments. The Company is still currently involved in these investments; however, past performance does not guarantee future performance.
Non-interest expense for the third quarter of 2021 was $75.6 million. The most important components of the second quarter non-interest expense were $42.5 million from salaries and employee benefits, $16.8 million in other expense, $9.3 million in occupancy and equipment expenses and $6.0 million in data processing expenses. Also included within non-interest expense was $1.0 million in merger and acquisition expenses, the majority of which is non-deductible for tax purposes. For the third quarter of 2021, our efficiency ratio was 42.26%.
Financial Condition
Total loans receivable were $9.90 billion at September 30, 2021 compared to $10.20 billion at June 30, 2021. Total deposits were $14.00 billion at September 30, 2021 compared to $13.89 billion at June 30, 2021. Total assets were $17.77 billion at September 30, 2021 compared to $17.63 billion at June 30, 2021.
During the third quarter 2021, the Company experienced approximately $298.1 million in loan decline. Centennial CFG experienced $76.1 million of organic loan growth and had loans of $1.64 billion at September 30, 2021. Our legacy footprint experienced $141.8 million in organic loan decline and $232.4 million in PPP loan decline during the quarter.
Non-performing loans to total loans was 0.51% as of September 30, 2021 compared to 0.58% as of June 30, 2021. Non-performing assets to total assets decreased from 0.35% as of June 30, 2021 to 0.29% as of September 30, 2021. Net charge-offs were $1.8 million and $2.5 million for the three months ended September 30, 2021 and June 30, 2021, respectively.
Non-performing loans at September 30, 2021 were $15.5 million, $25.2 million, $523,000, $1.9 million and $7.8 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $50.9 million. Non-performing assets at September 30, 2021 were $16.1 million, $25.8 million, $523,000, $1.9 million and $7.8 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $52.1 million.
The Company’s allowance for credit losses on loans was $238.7 million at September 30, 2021, or 2.41% of total loans, compared to the allowance for credit losses of $240.5 million, or 2.36% of total loans, at June 30, 2021. The Company’s allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.47%(1) at both September 30, 2021 and June 30, 2021. As of September 30, 2021 and June 30, 2021, the Company’s allowance for credit losses on loans was 468.77% and 407.99% of its total non-performing loans, respectively.
Stockholders’ equity was $2.74 billion at September 30, 2021 compared to $2.70 billion at June 30, 2021, an increase of approximately $39.9 million. The increase in stockholders’ equity was primarily associated with the $52.0 million increase in retained earnings, which was partially offset by a $3.1 million decrease in accumulated other comprehensive income and net stock repurchases and share-based compensation activity of $9.0 million. Book value per common share was $16.68 at September 30, 2021 compared to $16.39 at June 30, 2021. Tangible book value per common share (non-GAAP) was $10.59(1) at September 30, 2021 compared to $10.31(1) at June 30, 2021, an increase of 10.77% on an annualized basis.
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(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.Branches
The Company currently has 76 branches in Arkansas, 78 branches in Florida, 5 branches in Alabama and one branch in New York City.
Acquisition
The Company’s previously announced acquisition of Happy Bancshares, Inc. (“Happy”) and its bank subsidiary, Happy State Bank, is currently expected to close during the first quarter of 2022 and is subject to the approval of the shareholders of each company, regulatory approvals and other customary closing conditions.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, October 21, 2021. We encourage all participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10160407/ed8432fe7e. 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: 10160407, which will be available until October 28, 2021 at 10:59 p.m. CT (11:59 ET). Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com under “Investor Relations” for 12 months.
About Home BancShares
Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, South Alabama and New York City. The Company’s common stock is traded through the NASDAQ Global Select Market under the symbol “HOMB.” The company was founded in 1998 and is headquartered in Conway, Arkansas. Visit www.homebancshares.com or www.my100bank.com for more information.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures--including net income (earnings), as adjusted; pre-tax, pre-provision, net income (PPNR); pre-tax, pre-provision, profit percentage; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets excluding intangible amortization; return on average assets excluding excess liquidity; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity excluding intangible amortization; return on average tangible common equity, as adjusted; efficiency ratio, as adjusted; net interest margin, excluding PPP loans; allowance for credit losses to total loans, excluding PPP loans; tangible book value per common share and tangible common equity to tangible assets--to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions (including the effect of the PPP loans) that management believes are not indicative of the Company’s primary business operating results. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
General
This release may contain forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future, as well as statements about the benefits of the business combination transaction involving Home and Happy. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors include, but are not limited to, the following: economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment; disruptions, uncertainties and related effects on our business and operations as a result of the ongoing coronavirus (COVID-19) pandemic and measures that have been or may be implemented or imposed in response to the pandemic, including the impact on, among other things, credit quality and liquidity; the possibility that the proposed acquisition of Happy 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 possibility that such transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, ongoing or future effects of the COVID-19 pandemic, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Home and Happy operate; the ability to promptly and effectively integrate the businesses of Home and Happy; the reaction to the transaction of the companies’ customers, employees and counterparties; diversion of management time on acquisition-related issues; the effect of any future mergers, acquisitions or other transactions to which we or our bank subsidiary may from time to time be a party, including as a result of one or more of the factors described above as they would relate to such transaction; the ability to identify, enter into and/or close additional acquisitions; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations, including those in response to the COVID-19 pandemic; technological changes and cybersecurity risks; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; changes in the assumptions used in making the forward-looking statements; and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021.
Additional Important Information and Where to Find It
This press release may be deemed to be solicitation material in respect of the proposed transaction by Home and Happy. In connection with the proposed acquisition, Home intends to file with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 (the “Registration Statement”) to register the shares of Home common stock to be issued to shareholders of Happy in connection with the transaction. The Registration Statement will include a joint proxy statement of Home and Happy and a prospectus of Home (the “Joint Proxy Statement/Prospectus”), as well as other relevant materials regarding the proposed merger transaction involving Home and Happy. The definitive Joint Proxy Statement/Prospectus will be mailed to shareholders of Home and Happy. INVESTORS AND SECURITY HOLDERS OF HOME AND HAPPY ARE ADVISED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE JOINT PROXY STATEMENT/PROSPECTUS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER TRANSACTION. Investors and security holders may obtain free copies of these documents, once they are filed, and other documents filed with the SEC on the SEC’s website at http://www.sec.gov. Investors and security holders may also obtain free copies of the documents filed with the SEC by Home at Home’s website at http://www.homebancshares.com, Investor Relations, or by contacting Donna Townsell, by telephone at (501) 328-4625.
Participants in Solicitation
Home and Happy and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Home and Happy in connection with the merger transaction. Information about the directors and executive officers of Home and their ownership of Home common stock is set forth in the proxy statement for Home’s 2021 Annual Meeting of Shareholders, as filed with the SEC on Schedule 14A on March 2, 2021. Information about the directors and executive officers of Happy and their ownership of Happy common stock will be set forth in the Joint Proxy Statement/Prospectus to be included in the Registration Statement. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the Joint Proxy Statement/Prospectus regarding the merger transaction. Free copies of this document may be obtained as described in the preceding paragraph when it becomes available.
FOR MORE INFORMATION CONTACT:
Donna Townsell
Director of Investor Relations
Home BancShares, Inc.
(501) 328-4625Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, (In thousands) 2021 2021 2021 2020 2020 ASSETS Cash and due from banks $ 146,378 $ 182,226 $ 218,814 $ 242,173 $ 144,197 Interest-bearing deposits with other banks 3,133,878 2,759,027 2,259,734 1,021,615 899,140 Cash and cash equivalents 3,280,256 2,941,253 2,478,548 1,263,788 1,043,337 Investment securities - available-for-sale, net of
allowance for credit losses3,150,608 3,053,712 2,539,123 2,473,781 2,361,900 Loans receivable 9,901,100 10,199,175 10,778,493 11,220,721 11,691,470 Allowance for credit losses (238,673 ) (240,451 ) (242,932 ) (245,473 ) (248,224 ) Loans receivable, net 9,662,427 9,958,724 10,535,561 10,975,248 11,443,246 Bank premises and equipment, net 276,972 278,502 278,620 278,614 280,364 Foreclosed assets held for sale 1,171 1,969 3,004 4,420 4,322 Cash value of life insurance 104,638 104,132 103,599 103,519 102,989 Accrued interest receivable 48,577 48,725 55,495 60,528 72,599 Deferred tax asset, net 69,724 72,273 77,145 70,249 75,167 Goodwill 973,025 973,025 973,025 973,025 973,025 Core deposit and other intangibles 26,466 27,886 29,307 30,728 32,149 Other assets 171,192 166,991 166,814 164,904 160,660 Total assets $ 17,765,056 $ 17,627,192 $ 17,240,241 $ 16,398,804 $ 16,549,758 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits: Demand and non-interest-bearing $ 4,139,149 $ 4,076,570 $ 3,859,722 $ 3,266,753 $ 3,207,967 Savings and interest-bearing transaction accounts 8,813,326 8,744,900 8,477,208 8,212,240 8,011,200 Time deposits 1,050,896 1,069,871 1,175,664 1,246,797 1,718,299 Total deposits 14,003,371 13,891,341 13,512,594 12,725,790 12,937,466 Securities sold under agreements to repurchase 141,002 150,540 162,929 168,931 158,447 FHLB and other borrowed funds 400,000 400,000 400,000 400,000 403,428 Accrued interest payable and other liabilities 113,721 118,415 148,999 127,999 139,485 Subordinated debentures 370,900 370,707 370,515 370,326 370,133 Total liabilities 15,028,994 14,931,003 14,595,037 13,793,046 14,008,959 Stockholders' equity Common stock 1,640 1,645 1,651 1,651 1,652 Capital surplus 1,492,588 1,501,615 1,516,286 1,520,617 1,520,103 Retained earnings 1,215,831 1,163,810 1,107,818 1,039,370 980,699 Accumulated other comprehensive income 26,003 29,119 19,449 44,120 38,345 Total stockholders' equity 2,736,062 2,696,189 2,645,204 2,605,758 2,540,799 Total liabilities and stockholders' equity $ 17,765,056 $ 17,627,192 $ 17,240,241 $ 16,398,804 $ 16,549,758 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) 2021 2021 2021 2020 2020 2021 2020 Interest income Loans $ 142,609 $ 141,684 $ 150,917 $ 153,407 $ 154,787 $ 435,210 $ 471,931 Investment securities Taxable 8,495 7,185 6,253 6,900 7,227 21,933 25,696 Tax-exempt 4,839 4,905 5,071 4,979 4,367 14,815 11,179 Deposits - other banks 1,117 707 410 270 252 2,234 1,579 Federal funds sold - - - - - - 21 Total interest income 157,060 154,481 162,651 165,556 166,633 474,192 510,406 Interest expense Interest on deposits 5,642 6,434 7,705 10,596 13,200 19,781 52,514 Federal funds purchased - - - - - - 13 FHLB borrowed funds 1,917 1,896 1,875 1,917 2,235 5,688 7,589 Securities sold under agreements to repurchase 102 107 190 208 237 399 959 Subordinated debentures 4,788 4,792 4,793 4,810 4,823 14,373 14,801 Total interest expense 12,449 13,229 14,563 17,531 20,495 40,241 75,876 Net interest income 144,611 141,252 148,088 148,025 146,138 433,951 434,530 Provision for credit losses - - - - 14,000 - 112,264 Provision for credit loss - unfunded commitments - (4,752 ) - - - (4,752 ) 16,989 Total credit loss expense - (4,752 ) - - 14,000 (4,752 ) 129,253 Net interest income after provision for credit
losses144,611 146,004 148,088 148,025 132,138 438,703 305,277 Non-interest income Service charges on deposit accounts 5,941 5,116 5,002 5,544 4,910 16,059 15,837 Other service charges and fees 8,051 9,659 7,608 8,425 8,539 25,318 22,261 Trust fees 479 444 522 420 378 1,445 1,213 Mortgage lending income 5,948 6,202 8,167 10,071 10,177 20,317 18,994 Insurance commissions 586 478 492 366 271 1,556 1,482 Increase in cash value of life insurance 509 537 502 534 548 1,548 1,666 Dividends from FHLB, FRB, FNBB & other 2,661 2,646 8,609 967 3,433 13,916 11,505 Gain on SBA loans 439 1,149 - 304 - 1,588 341 (Loss) gain on branches, equipment and
other assets, net(34 ) (23 ) (29 ) 217 (27 ) (86 ) 109 Gain on OREO, net 246 619 401 150 470 1,266 982 Gain on securities, net - - 219 - - 219 - Fair value adjustment for marketable securities 61 1,250 5,782 4,271 (1,350 ) 7,093 (6,249 ) Other income 4,322 3,043 8,001 2,616 2,602 15,366 9,760 Total non-interest income 29,209 31,120 45,276 33,885 29,951 105,605 77,901 Non-interest expense Salaries and employee benefits 42,469 42,462 42,059 43,022 41,511 126,990 120,928 Occupancy and equipment 9,305 9,042 9,237 9,801 9,566 27,584 28,611 Data processing expense 6,024 5,893 5,870 5,171 4,921 17,787 13,861 Merger and acquisition expenses 1,006 - - - - 1,006 711 Other operating expenses 16,815 15,585 15,700 16,247 15,714 48,100 49,033 Total non-interest expense 75,619 72,982 72,866 74,241 71,712 221,467 213,144 Income (loss) before income taxes 98,201 104,142 120,498 107,669 90,377 322,841 170,034 Income tax expense (benefit) 23,209 25,072 28,896 25,875 21,057 77,177 37,380 Net income $ 74,992 $ 79,070 $ 91,602 $ 81,794 $ 69,320 $ 245,664 $ 132,654 Home BancShares, Inc.
Selected Financial Information
(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) 2021 2021 2021 2020 2020 2021 2020 PER SHARE DATA Diluted earnings per common share $ 0.46 $ 0.48 $ 0.55 $ 0.50 $ 0.42 $ 1.49 $ 0.80 Diluted earnings per common share, as adjusted, excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses (non-GAAP)(1) 0.45 0.46 0.47 0.48 0.41 1.38 0.80 Basic earnings per common share 0.46 0.48 0.55 0.50 0.42 1.49 0.80 Dividends per share - common 0.14 0.14 0.14 0.14 0.13 0.42 0.39 Book value per common share 16.68 16.39 16.02 15.78 15.38 16.68 15.38 Tangible book value per common share (non-GAAP)(1) 10.59 10.31 9.95 9.70 9.30 10.59 9.30 STOCK INFORMATION Average common shares outstanding 164,126 164,781 165,257 165,119 165,200 164,717 165,458 Average diluted shares outstanding 164,603 165,226 165,446 165,119 165,200 165,050 165,458 End of period common shares outstanding 164,008 164,488 165,141 165,095 165,163 164,008 165,163 ANNUALIZED PERFORMANCE METRICS Return on average assets 1.68 % 1.81 % 2.22 % 1.97 % 1.66 % 1.90 % 1.11 % Return on average assets excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special
project expense & merger and acquisition expenses: (ROA, as adjusted) (non-GAAP)(1)1.67 % 1.75 % 1.88 % 1.90 % 1.63 % 1.76 % 1.10 % Return on average assets excluding intangible amortization (non-GAAP)(1) 1.81 % 1.95 % 2.39 % 2.13 % 1.80 % 2.04 % 1.21 % Return on average assets excluding excess liquidity (non-GAAP)(1) 1.98 % 2.09 % 2.42 % 2.07 % 1.74 % 2.17 % 1.14 % Return on average common equity 10.97 % 11.92 % 14.15 % 12.72 % 10.97 % 12.32 % 7.13 % Return on average common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries
on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROE, as adjusted) (non-GAAP)(1)10.87 % 11.54 % 11.95 % 12.23 % 10.76 % 11.44 % 7.08 % Return on average tangible common equity
(non-GAAP)(1)17.39 % 19.12 % 22.90 % 20.96 % 18.29 % 19.74 % 11.96 % Return on average tangible common equity excluding intangible amortization (non-GAAP)(1) 17.64 % 19.38 % 23.16 % 21.22 % 18.56 % 19.99 % 12.26 % Return on average tangible common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROTCE, as adjusted)
(non-GAAP)(1)17.23 % 18.50 % 19.33 % 20.15 % 17.93 % 18.33 % 11.89 % (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
Home BancShares, Inc.
Selected Financial Information
(Unaudited)Quarter Ended Nine Months Ended Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Sep. 30, Sep. 30, (Dollars in thousands) 2021 2021 2021 2020 2020 2021 2020 Efficiency ratio 42.26 % 41.09 % 36.60 % 39.64 % 39.56 % 39.86 % 40.40 % Efficiency ratio, as adjusted (non-GAAP)(1) 42.29 % 42.07 % 40.68 % 40.67 % 40.08 % 41.67 % 40.25 % Net interest margin - FTE 3.60 % 3.61 % 4.02 % 4.00 % 3.92 % 3.74 % 4.08 % Net interest margin - FTE, excluding PPP loans
(non-GAAP)(1)3.43 % 3.54 % 3.87 % 3.97 % 3.98 % 3.61 % 4.12 % Fully taxable equivalent adjustment $ 1,748 $ 1,774 $ 1,821 $ 1,778 $ 1,576 $ 5,343 $ 4,237 Total revenue (net) 173,820 172,372 193,364 181,910 176,089 539,556 512,431 Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) 98,201 99,390 120,498 107,669 104,377 318,089 299,287 Pre-tax net income to total revenue (net) 56.50 % 60.42 % 62.32 % 59.19 % 51.32 % 59.83 % 33.18 % P5NR (Pre-tax, pre-provision, profit percentage)
(PPNR to total revenue (net)) (non-GAAP)(1)56.50 % 57.66 % 62.32 % 59.19 % 59.28 % 58.95 % 58.41 % Total purchase accounting accretion 4,868 5,797 5,485 5,736 6,957 16,150 21,640 Average purchase accounting loan discounts 36,456 38,568 43,940 49,563 55,835 38,587 62,662 OTHER OPERATING EXPENSES Advertising $ 1,204 $ 1,194 $ 1,046 $ 1,076 $ 902 $ 3,444 $ 2,923 Amortization of intangibles 1,421 1,421 1,421 1,421 1,420 4,263 4,423 Electronic banking expense 2,521 2,616 2,238 2,282 2,426 7,375 6,195 Directors' fees 395 414 383 359 429 1,192 1,265 Due from bank service charges 265 273 249 254 259 787 721 FDIC and state assessment 1,648 1,108 1,363 1,493 1,607 4,119 5,001 Insurance 749 787 781 795 766 2,317 2,223 Legal and accounting 1,050 1,058 846 790 1,235 2,954 3,432 Other professional fees 1,787 1,796 1,613 1,528 1,661 5,196 6,622 Operating supplies 474 465 487 440 460 1,426 1,548 Postage 301 292 338 315 328 931 968 Telephone 371 365 346 347 321 1,082 955 Other expense 4,629 3,796 4,589 5,147 3,900 13,014 12,757 Total other operating expenses $ 16,815 $ 15,585 $ 15,700 $ 16,247 $ 15,714 $ 48,100 $ 49,033 (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)Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, (Dollars in thousands) 2021 2021 2021 2020 2020 BALANCE SHEET RATIOS Total loans to total deposits 70.71 % 73.42 % 79.77 % 88.17 % 90.37 % Common equity to assets 15.40 % 15.30 % 15.34 % 15.89 % 15.35 % Tangible common equity to tangible assets (non-GAAP)(1) 10.36 % 10.20 % 10.12 % 10.41 % 9.88 % LOANS RECEIVABLE Real estate Commercial real estate loans Non-farm/non-residential $ 4,005,841 $ 4,144,375 $ 4,289,142 $ 4,429,060 $ 4,342,141 Construction/land development 1,742,687 1,541,482 1,612,973 1,562,298 1,748,928 Agricultural 138,881 126,293 113,382 114,431 89,476 Residential real estate loans Residential 1-4 family 1,273,988 1,316,485 1,437,546 1,536,257 1,665,628 Multifamily residential 274,131 332,256 377,661 536,538 491,380 Total real estate 7,435,528 7,460,891 7,830,704 8,178,584 8,337,553 Consumer 814,732 824,938 839,819 864,690 883,568 Commercial and industrial 1,414,079 1,612,826 1,794,787 1,896,442 2,161,818 Agricultural 68,272 69,152 65,017 66,869 85,365 Other 168,489 231,368 248,166 214,136 223,166 Loans receivable $ 9,901,100 $ 10,199,175 $ 10,778,493 $ 11,220,721 $ 11,691,470 Paycheck Protection Program (PPP) loans (net of discounts)
(included in total loans receivable)241,476 473,894 646,382 675,225 825,362 ALLOWANCE FOR CREDIT LOSSES Balance, beginning of period $ 240,451 $ 242,932 $ 245,473 $ 248,224 $ 238,340 Loans charged off 2,469 3,023 3,047 3,040 4,599 Recoveries of loans previously charged off 691 542 506 289 483 Net loans charged off 1,778 2,481 2,541 2,751 4,116 Provision for credit losses - loans - - - - 14,000 Balance, end of period $ 238,673 $ 240,451 $ 242,932 $ 245,473 $ 248,224 Net charge-offs to average total loans 0.07 % 0.09 % 0.09 % 0.10 % 0.14 % Allowance for credit losses to total loans 2.41 % 2.36 % 2.25 % 2.19 % 2.12 % Allowance for credit losses to total loans, excluding PPP loans 2.47 % 2.47 % 2.40 % 2.33 % 2.28 % NON-PERFORMING ASSETS Non-performing loans Non-accrual loans $ 47,604 $ 55,269 $ 59,142 $ 64,528 $ 65,148 Loans past due 90 days or more 3,311 3,667 4,209 9,610 8,635 Total non-performing loans 50,915 58,936 63,351 74,138 73,783 Other non-performing assets Foreclosed assets held for sale, net 1,171 1,969 3,004 4,420 4,322 Other non-performing assets - - - - 247 Total other non-performing assets 1,171 1,969 3,004 4,420 4,569 Total non-performing assets $ 52,086 $ 60,905 $ 66,355 $ 78,558 $ 78,352 Allowance for credit losses for loans to non-performing loans 468.77 % 407.99 % 383.47 % 331.10 % 336.42 % Non-performing loans to total loans 0.51 % 0.58 % 0.59 % 0.66 % 0.63 % Non-performing assets to total assets 0.29 % 0.35 % 0.38 % 0.48 % 0.47 % (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, 2021 June 30, 2021 Average Income/ Yield/ Average Income/ Yield/ (Dollars in thousands) Balance Expense Rate Balance Expense Rate ASSETS Earning assets Interest-bearing balances due from banks $ 2,914,785 $ 1,117 0.15 % $ 2,577,101 $ 707 0.11 % Federal funds sold 82 - 0.00 % 51 - 0.00 % Investment securities - taxable 2,289,680 8,495 1.47 % 1,909,485 7,185 1.51 % Investment securities - non-taxable - FTE 862,586 6,416 2.95 % 864,416 6,494 3.01 % Loans receivable - FTE 10,043,393 142,780 5.64 % 10,541,466 141,869 5.40 % Total interest-earning assets 16,110,526 158,808 3.91 % 15,892,519 156,255 3.94 % Non-earning assets 1,584,700 1,598,840 Total assets $ 17,695,226 $ 17,491,359 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest-bearing liabilities Savings and interest-bearing transaction
accounts$ 8,794,657 $ 3,613 0.16 % $ 8,684,726 $ 3,960 0.18 % Time deposits 1,063,500 2,029 0.76 % 1,123,287 2,474 0.88 % Total interest-bearing deposits 9,858,157 5,642 0.23 % 9,808,013 6,434 0.26 % Securities sold under agreement to repurchase 143,937 102 0.28 % 157,570 107 0.27 % FHLB borrowed funds 400,000 1,917 1.90 % 400,000 1,896 1.90 % Subordinated debentures 370,805 4,788 5.12 % 370,613 4,792 5.19 % Total interest-bearing liabilities 10,772,899 12,449 0.46 % 10,736,196 13,229 0.49 % Non-interest bearing liabilities Non-interest bearing deposits 4,091,174 3,966,968 Other liabilities 120,200 128,048 Total liabilities 14,984,273 14,831,212 Shareholders' equity 2,710,953 2,660,147 Total liabilities and shareholders' equity $ 17,695,226 $ 17,491,359 Net interest spread 3.45 % 3.45 % Net interest income and margin - FTE $ 146,359 3.60 % $ 143,026 3.61 % Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)Nine Months Ended September 30, 2021 September 30, 2020 Average Income/ Yield/ Average Income/ Yield/ (Dollars in thousands) Balance Expense Rate Balance Expense Rate ASSETS Earning assets Interest-bearing balances due from banks $ 2,372,227 $ 2,234 0.13 % $ 671,231 $ 1,579 0.31 % Federal funds sold 83 - 0.00 % 1,775 21 1.58 % Investment securities - taxable 1,947,799 21,933 1.51 % 1,665,900 25,696 2.06 % Investment securities - non-taxable - FTE 858,440 19,610 3.05 % 503,253 14,712 3.90 % Loans receivable - FTE 10,532,411 435,758 5.53 % 11,519,706 472,635 5.48 % Total interest-earning assets 15,710,960 479,535 4.08 % 14,361,865 514,643 4.79 % Non-earning assets 1,594,442 1,655,973 Total assets $ 17,305,402 $ 16,017,838 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest-bearing liabilities Savings and interest-bearing transaction
accounts$ 8,607,728 $ 12,289 0.19 % $ 7,544,763 $ 30,272 0.54 % Time deposits 1,131,538 7,492 0.89 % 1,847,833 22,242 1.61 % Total interest-bearing deposits 9,739,266 19,781 0.27 % 9,392,596 52,514 0.75 % Federal funds purchased - - 0.00 % 2,080 13 0.83 % Securities sold under agreement to repurchase 153,677 399 0.35 % 150,020 959 0.85 % FHLB borrowed funds 400,000 5,688 1.90 % 579,805 7,589 1.75 % Subordinated debentures 370,615 14,373 5.19 % 369,846 14,801 5.35 % Total interest-bearing liabilities 10,663,558 40,241 0.50 % 10,494,347 75,876 0.97 % Non-interest bearing liabilities Non-interest bearing deposits 3,848,302 2,904,159 Other liabilities 127,656 134,281 Total liabilities 14,639,516 13,532,787 Shareholders' equity 2,665,886 2,485,051 Total liabilities and shareholders' equity $ 17,305,402 $ 16,017,838 Net interest spread 3.58 % 3.82 % Net interest income and margin - FTE $ 439,294 3.74 % $ 438,767 4.08 % 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) 2021 2021 2021 2020 2020 2021 2020 EARNINGS, AS ADJUSTED GAAP net income available to common shareholders (A) $ 74,992 $ 79,070 $ 91,602 $ 81,794 $ 69,320 $ 245,664 $ 132,654 Pre-tax adjustments Fair value adjustment for marketable securities (61 ) (1,250 ) (5,782 ) (4,271 ) 1,350 (7,093 ) 6,249 Special dividend from equity investment (2,227 ) (2,200 ) (8,073 ) - (3,181 ) (12,500 ) (10,185 ) Gain on securities - - (219 ) - - (219 ) - Recoveries on historic losses - - (5,107 ) - - (5,107 ) - Branch write-off expense - - - - - - 981 Outsourced special project expense - - - - - - 1,092 Merger and acquisition expenses 1,006 - - - - 1,006 711 Total pre-tax adjustments (1,282 ) (3,450 ) (19,181 ) (4,271 ) (1,831 ) (23,913 ) (1,152 ) Tax-effect of adjustments (587 ) (888 ) (4,937 ) (1,116 ) (479 ) (6,412 ) (301 ) Total adjustments after-tax (B) (695 ) (2,562 ) (14,244 ) (3,155 ) (1,352 ) (17,501 ) (851 ) Earnings, as adjusted (C) $ 74,297 $ 76,508 $ 77,358 $ 78,639 $ 67,968 $ 228,163 $ 131,803 Average diluted shares outstanding (D) 164,603 165,226 165,446 165,119 165,200 165,050 165,458 GAAP diluted earnings per share: (A/D) $ 0.46 $ 0.48 $ 0.55 $ 0.50 $ 0.42 $ 1.49 $ 0.80 Adjustments after-tax: (B/D) (0.01 ) (0.02 ) (0.08 ) (0.02 ) (0.01 ) (0.11 ) - Diluted earnings per common share, as adjusted, excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition
expenses: (C/D)$ 0.45 $ 0.46 $ 0.47 $ 0.48 $ 0.41 $ 1.38 $ 0.80 ANNUALIZED RETURN ON AVERAGE ASSETS Return on average assets: (A/G) 1.68 % 1.81 % 2.22 % 1.97 % 1.66 % 1.90 % 1.11 % Return on average assets excluding fair value adjustment for marketable
securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROA, as adjusted) ((A+F)/G)1.67 % 1.75 % 1.88 % 1.90 % 1.63 % 1.76 % 1.10 % Return on average assets excluding intangible amortization: ((A+E)/(G-H)) 1.81 % 1.95 % 2.39 % 2.13 % 1.80 % 2.04 % 1.21 % Return on average assets excluding excess liquidity: (A/(G-I)) 1.98 % 2.09 % 2.42 % 2.07 % 1.74 % 2.17 % 1.14 % GAAP net income available to common shareholders (A) $ 74,992 $ 79,070 $ 91,602 $ 81,794 $ 69,320 $ 245,664 $ 132,654 Amortization of intangibles (D) 1,421 1,421 1,421 1,421 1,420 4,263 4,423 Amortization of intangibles after-tax (E) 1,055 1,055 1,055 1,049 1,049 3,165 3,268 Adjustments after-tax (F) (695 ) (2,562 ) (14,244 ) (3,155 ) (1,352 ) (17,501 ) (851 ) Average assets (G) 17,695,226 17,491,359 16,718,890 16,493,066 16,594,495 17,305,402 16,017,838 Average goodwill, core deposits & other intangible assets (H) 1,000,175 1,001,598 1,003,011 1,004,432 1,005,864 1,001,585 1,004,065 Average interest bearing cash balance 2,914,785 2,577,101 1,610,463 1,029,047 926,754 2,372,227 671,231 Average historical interest bearing cash balance 225,000 225,000 225,000 225,000 225,000 225,000 225,000 Average excess cash balance (I) 2,689,785 2,352,101 1,385,463 804,047 701,754 2,147,227 446,231 Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)Quarter Ended Nine Months Ended Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Sep. 30, Sep. 30, (Dollars in thousands) 2021 2021 2021 2020 2020 2021 2020 ANNUALIZED RETURN ON AVERAGE COMMON EQUITY Return on average common equity: (A/D) 10.97 % 11.92 % 14.15 % 12.72 % 10.97 % 12.32 % 7.13 % Return on average common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense
& merger and acquisition expenses: (ROE, as adjusted)
((A+C)/D)10.87 % 11.54 % 11.95 % 12.23 % 10.76 % 11.44 % 7.08 % Return on average tangible common equity: (A/(D-E)) 17.39 % 19.12 % 22.90 % 20.96 % 18.29 % 19.74 % 11.96 % Return on average tangible common equity excluding intangible amortization: (B/(D-E)) 17.64 % 19.38 % 23.16 % 21.22 % 18.56 % 19.99 % 12.26 % Return on average tangible common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROTCE, as adjusted) ((A+C)/(D-E)) 17.23 % 18.50 % 19.33 % 20.15 % 17.93 % 18.33 % 11.89 % GAAP net income available to common shareholders (A) $ 74,992 $ 79,070 $ 91,602 $ 81,794 $ 69,320 $ 245,664 $ 132,654 Earnings excluding intangible amortization (B) 76,047 80,125 92,657 82,843 70,369 248,829 135,922 Adjustments after-tax (C) (695 ) (2,562 ) (14,244 ) (3,155 ) (1,352 ) (17,501 ) (851 ) Average common equity (D) 2,710,953 2,660,147 2,625,618 2,557,251 2,513,792 2,665,886 2,485,051 Average goodwill, core deposits & other intangible assets (E) 1,000,175 1,001,598 1,003,011 1,004,432 1,005,864 1,001,585 1,004,065 EFFICIENCY RATIO & P5NR Efficiency ratio: ((D-F)/(B+C+E)) 42.26 % 41.09 % 36.60 % 39.64 % 39.56 % 39.86 % 40.40 % Efficiency ratio, as adjusted: ((D-F-H)/(B+C+E-G)) 42.29 % 42.07 % 40.68 % 40.67 % 40.08 % 41.67 % 40.25 % Pre-tax net income to total revenue (net) (A/(B+C)) 56.50 % 60.42 % 62.32 % 59.19 % 51.32 % 59.83 % 33.18 % Pre-tax, pre-provision, net income (PPNR) (B+C-D) $ 98,201 $ 99,390 $ 120,498 $ 107,669 $ 104,377 $ 318,089 $ 299,287 P5NR (Pre-tax, pre-provision, profit
percentage) PPNR to total revenue (net)) (B+C-D)/(B+C)56.50 % 57.66 % 62.32 % 59.19 % 59.28 % 58.95 % 58.41 % Pre-tax net income (A) $ 98,201 $ 104,142 $ 120,498 $ 107,669 $ 90,377 $ 322,841 $ 170,034 Net interest income (B) 144,611 141,252 148,088 148,025 146,138 433,951 434,530 Non-interest income (C) 29,209 31,120 45,276 33,885 29,951 105,605 77,901 Non-interest expense (D) 75,619 72,982 72,866 74,241 71,712 221,467 213,144 Fully taxable equivalent adjustment (E) 1,748 1,774 1,821 1,778 1,576 5,343 4,237 Amortization of intangibles (F) 1,421 1,421 1,421 1,421 1,420 4,263 4,423 Adjustments: Non-interest income: Fair value adjustment for marketable securities $ 61 $ 1,250 $ 5,782 $ 4,271 $ (1,350 ) $ 7,093 $ (6,249 ) Gain (loss) on OREO 246 619 401 150 470 1,266 982 Gain (loss) on branches, equipment and other assets, net (34 ) (23 ) (29 ) 217 (27 ) (86 ) 109 Special dividend from equity investment 2,227 2,200 8,073 - 3,181 12,500 10,185 Gain (loss) on securities - - 219 - - 219 - Recoveries on historic losses - - 5,107 - - 5,107 - Total non-interest income adjustments (G) $ 2,500 $ 4,046 $ 19,553 $ 4,638 $ 2,274 $ 26,099 $ 5,027 Non-interest expense: Branch write-off expense $ - $ - $ - $ - $ - $ - $ 981 Merger and acquisition expenses 1,006 - - - - 1,006 711 Outsourced special project expense - - - - - - 1,092 Total non-interest expense adjustments (H) $ 1,006 $ - $ - $ - $ - $ 1,006 $ 2,784 Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)Quarter Ended Nine Months Ended Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Sep. 30, Sep. 30, (Dollars in thousands) 2021 2021 2021 2020 2020 2021 2020 ANNUALIZED NET INTEREST MARGIN Net interest margin: (A/C) 3.60 % 3.61 % 4.02 % 4.00 % 3.92 % 3.74 % 4.08 % Net interest margin, excluding PPP loans:
(B/D)3.43 % 3.54 % 3.87 % 3.97 % 3.98 % 3.61 % 4.12 % Net interest income - FTE (A) $ 146,359 $ 143,062 $ 149,945 $ 149,803 $ 147,714 $ 439,294 $ 438,767 PPP loan interest & discount accretion
income10,162 7,802 11,878 8,841 5,943 29,842 10,393 Net interest income - FTE, excluding
PPP loans (B)$ 136,197 $ 135,260 $ 138,067 $ 140,962 $ 141,771 $ 409,452 $ 428,374 Average interest-earning assets (C) $ 16,110,526 $ 15,892,519 $ 15,118,940 $ 14,900,381 $ 14,975,146 $ 15,710,960 $ 14,361,865 Average PPP loans 371,523 581,371 633,790 775,861 821,977 525,941 470,595 Average interest-earning assets, excluding
PPP loans (D)$ 15,739,003 $ 15,311,148 $ 14,485,150 $ 14,124,520 $ 14,153,169 $ 15,185,019 $ 13,891,270 Quarter Ended Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, 2021 2021 2021 2020 2020 TANGIBLE BOOK VALUE PER
COMMON SHAREBook value per common share: (A/B) $ 16.68 $ 16.39 $ 16.02 $ 15.78 $ 15.38 Tangible book value per common share:
((A-C-D)/B)10.59 10.31 9.95 9.70 9.30 Total stockholders' equity (A) $ 2,736,062 $ 2,696,189 $ 2,645,204 $ 2,605,758 $ 2,540,799 End of period common shares outstanding
(B)164,008 164,488 165,141 165,095 165,163 Goodwill (C) 973,025 973,025 973,025 973,025 973,025 Core deposit and other intangibles (D) 26,466 27,886 29,307 30,728 32,149 TANGIBLE COMMON EQUITY
TO TANGIBLE ASSETSEquity to assets: (B/A) 15.40 % 15.30 % 15.34 % 15.89 % 15.35 % Tangible common equity to tangible assets:
((B-C-D)/(A-C-D))10.36 % 10.20 % 10.12 % 10.41 % 9.88 % Total assets (A) $ 17,765,056 $ 17,627,192 $ 17,240,241 $ 16,398,804 $ 16,549,758 Total stockholders' equity (B) 2,736,062 2,696,189 2,645,204 2,605,758 2,540,799 Goodwill (C) 973,025 973,025 973,025 973,025 973,025 Core deposit and other intangibles (D) 26,466 27,886 29,307 30,728 32,149 
