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Results of West Texas Headwinds and FDIC Surprise 4th Quarter Assessment Only Things Standing Between HOMB and Expected 2023 Goal of $400 Million Plus
المصدر: Nasdaq GlobeNewswire / 18 يناير 2024 07:15:02 America/Chicago
CONWAY, Ark., Jan. 18, 2024 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NYSE: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.
Quarterly Highlights
Metric Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Net income $86.2 million $98.5 million $105.3 million $103.0 million $115.7 million Total revenue (net) $245.6 million $245.4 million $257.2 million $248.8 million $272.3 million Income before income taxes $112.8 million $129.3 million $136.9 million $132.9 million $148.4 million Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) $118.4 million $130.6 million $140.9 million $134.1 million $153.4 million Pre-tax net income to total revenue (net) 45.92% 52.70% 53.23% 53.43% 54.50% P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) 48.22% 53.23% 54.78% 53.91% 56.34% ROA 1.55% 1.78% 1.90% 1.84% 1.98% NIM 4.17% 4.19% 4.28% 4.37% 4.21% Purchase accounting accretion $2.3 million $2.4 million $2.7 million $3.2 million $3.5 million ROE 9.36% 10.65% 11.63% 11.70% 13.29% ROTCE (non-GAAP)(1) 15.49% 17.62% 19.39% 19.75% 22.96% Diluted earnings per share $0.43 $0.49 $0.52 $0.51 $0.57 Diluted earnings per shares, excluding FDIC special assessment (non-GAAP)(1) 0.48 0.49 0.52 0.51 0.57 Non-performing assets to total assets 0.42% 0.42% 0.28% 0.33% 0.27% Common equity tier 1 capital 14.2% 14.0% 13.6% 13.2% 12.9% Leverage 12.4% 12.4% 11.9% 11.4% 10.9% Tier 1 capital 14.2% 14.0% 13.6% 13.2% 12.9% Total risk-based capital 17.8% 17.6% 17.3% 16.8% 16.5% Allowance for credit losses to total loans 2.00% 2.00% 2.01% 2.00% 2.01% Book value per share $18.81 $18.06 $18.04 $17.87 $17.33 Tangible book value per share (non-GAAP)(1) 11.63 10.90 10.87 10.71 10.17 (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
“2023 was a tough year for the banking sector. For HOMB, the biggest obstacles came in the form of the loss of income as a result of the actions from some individuals in West Texas that may prove to be unethical and potentially criminal. In addition, the FDIC 4th quarter surprise assessment to financial institutions to recover losses from failed banks, resulted in $13 million ($0.05 per share) expense for Home BancShares. Both of these events were out of HOMB’s control, and the first event is a matter for the court, so we won’t speculate on the damage. The second one we know is $0.05 per share. Excluding these events, I’m proud to say that we would have beat our goal of $400 million plus and earned over $2.00 per share,” said John Allison, Chairman and CEO of HOMB.
Liquidity and Funding Sources
At December 31, 2023, the Company held $2.12 billion in net available internal liquidity. This balance consisted of $1.21 billion in unpledged investment securities which could be used for additional secured borrowing capacity, $732.4 million in cash with the Federal Reserve Bank (FRB) and $177.2 million in other liquid cash accounts.
Consistent with the Company’s practice of maintaining access to significant external liquidity, the Company had $3.47 billion in net available external liquidity as of December 31, 2023. This included $4.63 billion in available liquidity with the Federal Home Loan Bank (FHLB), of which $1.93 billion has been drawn upon in the ordinary course of business, resulting in $2.69 billion in net available liquidity with the FHLB as of December 31, 2023. The $1.93 billion consisted of $600.0 million in outstanding FHLB advances and $1.33 billion used for pledging purposes. The Company also had access to approximately $1.37 billion in liquidity with the FRB as of December 31, 2023, of which $700.0 million has been drawn upon in the ordinary course of business, resulting in $674.3 million in net available liquidity with the FRB as of December 31, 2023. The $674.3 million consisted of $89.8 million available from the Discount Window and $584.5 million available through the Bank Term Funding Program (BTFP). As of December 31, 2023, the Company also had access to $55.0 million from First National Bankers’ Bank (FNBB) and $45.0 million from other various external sources.
Overall, the Company had $5.59 billion in net available liquidity as of December 31, 2023, which consisted of $2.12 billion of net available internal liquidity and $3.47 billion in net available external liquidity. Details on the Company’s available liquidity as of December 31, 2023 is available below.
(In thousands) Total Available Amount Used Net Availability Internal Sources Unpledged investment securities (market value) $ 1,214,352 $ — $ 1,214,352 Cash at FRB 732,412 — 732,412 Other liquid cash accounts 177,191 — 177,191 Total Internal Liquidity 2,123,955 — 2,123,955 External Sources FHLB 4,625,496 1,932,490 2,693,006 FRB Discount Window 89,823 — 89,823 BTFP (par value) 1,284,507 700,000 584,507 FNBB 55,000 — 55,000 Other 45,000 — 45,000 Total External Liquidity 6,099,826 2,632,490 3,467,336 Total Available Liquidity $ 8,223,781 $ 2,632,490 $ 5,591,291 The Company has continued to limit its exposure to uninsured deposits and has been actively monitoring this in light of the current banking environment. As of December 31, 2023, the Company held approximately $8.34 billion in uninsured deposits of which $595.5 million were intercompany subsidiary deposit balances and $3.03 billion were collateralized deposits, for a net position of $4.72 billion. This represents approximately 28.1% of total deposits. In addition, net available liquidity exceeded uninsured and uncollateralized deposits by $867.6 million.
(in thousands) As of
December 31, 2023Uninsured Deposits $ 8,344,570 Intercompany Subsidiary and Affiliate Balances 595,539 Collateralized Deposits 3,025,358 Net Uninsured Position $ 4,723,673 Total Available Liquidity $ 5,591,291 Net Uninsured Position 4,723,673 Net Available Liquidity in Excess of Uninsured Deposits $ 867,618 In the event the Company’s $4.72 billion net position of uninsured deposits had been called by depositors on the first day of the fourth quarter of 2023 and the Company utilized available BTFP funding, which remained outstanding during the entire quarter, the Company estimates that interest expense would have increased by approximately $57.6 million for the quarter ended December 31, 2023. The outflow of deposits could have been funded through available sources of liquidity without selling our investment securities. In this event, because of the high profitability levels of HOMB, the Company estimates that it would still have achieved return on average assets (ROA) of 1.05% for the quarter ended December 31, 2023.
Operating Highlights
Net income for the three-month period ended December 31, 2023 was $86.2 million, or $0.43 diluted earnings per share. When adjusting for non-fundamental items, net income and diluted earnings per share on an as-adjusted basis (non-GAAP), were $92.2 million(1), and $0.46 per share(1), respectively, for the three months ended December 31, 2023. The $13.0 million Federal Deposit Insurance Corporation (FDIC) assessment resulted in a $0.05 reduction to earnings per share. When adjusting solely for the FDIC assessment, net income (non-GAAP) would have been $96.0 million(1), or $0.48 diluted earnings per share(1).
Our net interest margin was 4.17% for the three-month period ended December 31, 2023, compared to 4.19% for the three-month period ended September 30, 2023. The yield on loans was 7.20% and 6.98% for the three months ended December 31, 2023 and September 30, 2023, respectively, as average loans increased from $14.19 billion to $14.34 billion. Additionally, the rate on interest bearing deposits increased to 2.80% as of December 31, 2023, from 2.55% as of September 30, 2023, while average interest-bearing deposits increased from $12.24 billion to $12.48 billion.
During the fourth quarter of 2023, there was $120,000 of event interest income compared to $521,000 of event interest expense for the third quarter of 2023.
Purchase accounting accretion on acquired loans was $2.3 million and $2.4 million and average purchase accounting loan discounts were $27.4 million and $29.9 million for the three-month periods ended December 31, 2023 and September 30, 2023, respectively.
Net interest income on a fully taxable equivalent basis was $203.9 million for the three-month period ended December 31, 2023, and $203.2 million for the three-month period ended September 30, 2023. This increase in net interest income for the three-month period ended December 31, 2023, was the result of an $11.8 million increase in interest income, partially offset by an $11.1 million increase in interest expense. The $11.8 million increase in interest income was primarily the result of a $10.5 million increase in loan interest income and a $2.0 million increase in income from interest-bearing balances due from banks, partially offset by a $658,000 decrease in investment income. The increase in interest income is a result of the current high interest rate environment. The $11.1 million increase in interest expense was due to a $9.3 million increase in interest expense on deposits, a $1.7 million increase in interest expense on FHLB and other borrowed funds and a $136,000 increase in interest expense on securities sold under agreement to repurchase. The increase in interest expense is also a result of the current high interest rate environment.
The Company reported $42.8 million of non-interest income for the fourth quarter of 2023. The most important components of fourth quarter non-interest income were $10.4 million from other service charges and fees, $10.1 million from service charges on deposit accounts, $5.3 million from other income, $5.0 million from the fair value adjustment for marketable securities, $4.3 million from trust fees, $3.0 million from dividends from FHLB, FRB, FNBB and other, $2.4 million in mortgage lending income and $1.2 million from the increase in cash value of life insurance.
Non-interest expense for the fourth quarter of 2023 was $127.2 million. The most important components of non-interest expense were $63.4 million from salaries and employee benefits, $39.7 million in other operating expense, $15.0 million in occupancy and equipment expenses and $9.1 million in data processing expenses. Included within other operating expenses was $13.0 million in FDIC special assessment expense which was levied in order to recover the losses to the Deposit Insurance Fund associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank. For the fourth quarter of 2023, our efficiency ratio was 50.64%, and our efficiency ratio, as adjusted (non-GAAP), was 46.43%(1).
Financial Condition
Total loans receivable were $14.42 billion at December 31, 2023, compared to $14.27 billion at September 30, 2023. Total deposits were $16.79 billion at December 31, 2023, compared to $16.52 billion at September 30, 2023. Total assets were $22.66 billion at December 31, 2023, compared to $21.95 billion at September 30, 2023.
During the fourth quarter of 2023, the Company experienced approximately $152.9 million in loan growth. Centennial CFG experienced $61.5 million of organic loan decline and had loans of $1.95 billion at December 31, 2023. Our remaining markets experienced $214.4 million in organic loan growth during the quarter.
Non-performing loans to total loans was 0.44% and 0.64% at December 31, 2023 and September 30, 2023, respectively. Non-performing assets to total assets was 0.42% at both December 31, 2023 and September 30, 2023. Net charge-offs were $3.0 million and $2.9 million for the three months ended December 31, 2023 and September 30, 2023, respectively.
Non-performing loans at December 31, 2023 were $15.4 million, $9.3 million, $33.5 million, $413,000, $2.8 million and $2.7 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $64.1 million. Non-performing assets at December 31, 2023 were $15.5 million, $17.3 million, $33.8 million, $413,000, $2.8 million and $25.6 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $95.4 million.
The Company’s allowance for credit losses on loans was $288.2 million at December 31, 2023, or 2.00% of total loans, compared to the allowance for credit losses on loans of $285.6 million, or 2.00% of total loans, at September 30, 2023. As of December 31, 2023 and September 30, 2023, the Company’s allowance for credit losses on loans was 449.66% and 314.29% of its total non-performing loans, respectively.
Stockholders’ equity was $3.79 billion at December 31, 2023, compared to $3.65 billion at September 30, 2023, an increase of approximately $136.2 million. The increase in stockholders’ equity is primarily associated with the $101.5 million improvement in accumulated other comprehensive loss and the $49.9 million increase in retained earnings, partially offset by the $17.8 million in stock repurchases. Book value per common share was $18.81 at December 31, 2023, compared to $18.06 at September 30, 2023. Tangible book value per common share (non-GAAP) was $11.63(1) at December 31, 2023, compared to $10.90(1) at September 30, 2023.
Branches
The Company currently has 76 branches in Arkansas, 78 branches in Florida, 63 branches in Texas, 5 branches in Alabama and one branch in New York City.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 p.m. ET) on Thursday, January 18, 2024. We strongly encourage all participants to pre-register for the conference call webcast or the live call using one of the following links. First, participants can pre-register for the conference call webcast using the following link: https://events.q4inc.com/attendee/569988317. Participants who pre-register will be given a unique webcast link to gain immediate access to the conference call webcast. Second, participants can pre-register for the live call using the following link: https://www.netroadshow.com/events/login?show=d3aae28a&confId=59075. Participants who pre-register will be given the phone number and unique access codes to gain immediate access to the live call. Participants may pre-register now, or at any time prior to the call, and will immediately receive simple instructions via email. The Home BancShares conference call will also be scheduled as an event in your Outlook calendar.
Those without internet access or unable to pre-register may dial in and listen to the live call by calling 1-833-470-1428, Passcode: 335279. A replay of the call will be available by calling 1-866-813-9403, Passcode: 758279, which will be available until January 25, 2024, at 10:59 p.m. CT (11:59 p.m. ET). Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com.
About Home BancShares
Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, Texas, South Alabama and New York City. The Company’s common stock is traded through the New York Stock Exchange under the symbol “HOMB.” The Company was founded in 1998. Visit www.homebancshares.com or www.my100bank.com for more information.
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures--including net income (earnings), as adjusted; pre-tax, pre-provision, net income (PPNR); PPNR, as adjusted; pre-tax net income, as adjusted, to total revenue (net); pre-tax, pre-provision, profit percentage; pre-tax, pre-provision, profit percentage, as adjusted; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets excluding intangible amortization; return on average assets, as adjusted, excluding intangible amortization; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity, as adjusted; return on average tangible common equity excluding intangible amortization; return on average tangible common equity, as adjusted, excluding intangible amortization; efficiency ratio, as adjusted; tangible book value per common share and tangible common equity to tangible assets--to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions that management believes are not indicative of the Company’s primary business operating results. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
General
This release contains forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future, including future financial results. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future events, performance or results. When we use words or phrases like “may,” “plan,” “propose,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,” “would,” “on track” and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risks and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors include, but are not limited to, the following: economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment, including the ongoing impacts of inflation; disruptions, uncertainties and related effects on our business and operations that may result from any future outbreaks of the COVID-19 pandemic or other public health crises, including the impact on, among other things, credit quality and liquidity; the ability to identify, complete and successfully integrate new acquisitions; the risk that expected cost savings and other benefits from acquisitions may not be fully realized or may take longer to realize than expected; diversion of management time on acquisition-related issues; the availability of and access to capital and liquidity on terms acceptable to us; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations; technological changes and cybersecurity risks and incidents; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability, military conflicts and other major domestic or international events; adverse weather events, including hurricanes, and other natural disasters; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; potential increases in deposit insurance assessments, increased regulatory scrutiny or market disruptions resulting from financial challenges in the banking industry; changes in the assumptions used in making the forward-looking statements; and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 24, 2023 and our Quarterly Reports on Form 10-Q for the periods ended March 31, 2023, June 30, 2023 and September 30, 2023, filed with the SEC on May 5, 2023, August 4, 2023 and November 6, 2023, respectively.
FOR MORE INFORMATION CONTACT:
Donna Townsell
Director of Investor Relations
Home BancShares, Inc.
(501) 328-4625Home BancShares, Inc. Consolidated End of Period Balance Sheets (Unaudited) (In thousands) Dec. 31, 2023 Sep. 30, 2023 Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022 ASSETS Cash and due from banks $ 226,363 $ 229,474 $ 275,656 $ 250,841 $ 263,893 Interest-bearing deposits with other banks 773,850 258,605 335,535 437,213 460,897 Cash and cash equivalents 1,000,213 488,079 611,191 688,054 724,790 Federal funds sold 5,100 3,925 1,550 — — Investment securities - available-for-sale, net of allowance for credit losses 3,507,841 3,472,173 3,645,013 3,772,138 4,041,590 Investment securities - held-to-maturity, net of allowance for credit losses 1,281,982 1,283,475 1,285,150 1,286,373 1,287,705 Total investment securities 4,789,823 4,755,648 4,930,163 5,058,511 5,329,295 Loans receivable 14,424,728 14,271,833 14,180,972 14,386,634 14,409,480 Allowance for credit losses (288,234 ) (285,562 ) (285,683 ) (287,169 ) (289,669 ) Loans receivable, net 14,136,494 13,986,271 13,895,289 14,099,465 14,119,811 Bank premises and equipment, net 393,300 397,093 397,315 402,094 405,073 Foreclosed assets held for sale 30,486 691 725 425 546 Cash value of life insurance 214,516 213,351 213,090 214,792 213,693 Accrued interest receivable 118,966 110,946 101,066 102,740 103,199 Deferred tax asset, net 197,164 222,741 206,430 193,334 209,321 Goodwill 1,398,253 1,398,253 1,398,253 1,398,253 1,398,253 Core deposit intangible 48,770 51,023 53,500 55,978 58,455 Other assets 323,573 322,617 317,857 304,609 321,152 Total assets $ 22,656,658 $ 21,950,638 $ 22,126,429 $ 22,518,255 $ 22,883,588 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits: Demand and non-interest-bearing $ 4,085,501 $ 4,280,429 $ 4,598,593 $ 4,945,729 $ 5,164,997 Savings and interest-bearing transaction accounts 11,050,347 10,786,087 11,169,940 11,392,566 11,730,552 Time deposits 1,651,863 1,452,229 1,228,358 1,107,171 1,043,234 Total deposits 16,787,711 16,518,745 16,996,891 17,445,466 17,938,783 Securities sold under agreements to repurchase 142,085 160,120 160,349 138,742 131,146 FHLB and other borrowed funds 1,301,300 1,001,550 701,550 650,000 650,000 Accrued interest payable and other liabilities 194,653 175,367 173,426 212,887 196,877 Subordinated debentures 439,834 439,982 440,129 440,275 440,420 Total liabilities 18,865,583 18,295,764 18,472,345 18,887,370 19,357,226 Stockholders' equity Common stock 2,015 2,023 2,026 2,032 2,034 Capital surplus 2,348,023 2,363,210 2,366,560 2,375,754 2,386,699 Retained earnings 1,690,112 1,640,171 1,578,176 1,509,400 1,443,087 Accumulated other comprehensive loss (249,075 ) (350,530 ) (292,678 ) (256,301 ) (305,458 ) Total stockholders' equity 3,791,075 3,654,874 3,654,084 3,630,885 3,526,362 Total liabilities and stockholders' equity $ 22,656,658 $ 21,950,638 $ 22,126,429 $ 22,518,255 $ 22,883,588 Home BancShares, Inc. Consolidated Statements of Income (Unaudited) Quarter Ended Year Ended (In thousands) Dec. 31,
2023Sep. 30,
2023Jun. 30,
2023Mar. 31,
2023Dec. 31,
2022Dec. 31,
2023Dec. 31,
2022Interest income: Loans $ 260,003 $ 249,464 $ 243,152 $ 236,997 $ 221,280 $ 989,616 $ 728,342 Investment securities Taxable 34,016 34,520 34,751 35,288 33,639 138,575 91,933 Tax-exempt 7,855 7,868 7,932 7,963 7,855 31,618 28,356 Deposits - other banks 4,281 2,328 3,729 4,685 10,109 15,023 29,110 Federal funds sold 65 82 68 6 12 221 25 Total interest income 306,220 294,262 289,632 284,939 272,895 1,175,053 877,766 Interest expense: Interest on deposits 87,971 78,698 70,147 59,162 47,019 295,978 85,989 Federal funds purchased — 1 2 — — 3 2 FHLB and other borrowed funds 9,878 8,161 6,596 6,190 5,388 30,825 11,076 Securities sold under agreements to repurchase 1,480 1,344 1,121 868 701 4,813 1,430 Subordinated debentures 4,121 4,121 4,123 4,124 4,121 16,489 20,593 Total interest expense 103,450 92,325 81,989 70,344 57,229 348,108 119,090 Net interest income 202,770 201,937 207,643 214,595 215,666 826,945 758,676 Provision for credit losses on loans 5,650 2,800 2,300 1,200 5,000 11,950 50,170 (Recovery of) provision for credit losses on unfunded commitments — (1,500 ) — — — (1,500 ) 11,410 Provision for credit losses on investment securities — — 1,683 — — 1,683 2,005 Total credit loss expense 5,650 1,300 3,983 1,200 5,000 12,133 63,585 Net interest income after credit loss expense 197,120 200,637 203,660 213,395 210,666 814,812 695,091 Non-interest income: Service charges on deposit accounts 10,072 10,062 9,231 9,842 10,134 39,207 37,114 Other service charges and fees 10,422 10,128 11,763 11,875 10,363 44,188 44,588 Trust fees 4,316 4,660 4,052 4,864 3,981 17,892 12,855 Mortgage lending income 2,385 3,132 2,650 2,571 3,566 10,738 17,657 Insurance commissions 480 562 518 526 453 2,086 2,192 Increase in cash value of life insurance 1,170 1,170 1,211 1,104 1,079 4,655 3,800 Dividends from FHLB, FRB, FNBB & other 3,010 2,916 2,922 2,794 2,814 11,642 9,198 Gain on SBA loans 42 97 — 139 30 278 183 Gain on branches, equipment and other assets, net 583 — 917 7 10 1,507 15 Gain on OREO, net 13 — 319 — 13 332 500 Gain on securities, net — — — — — — — Fair value adjustment for marketable securities 5,024 4,507 783 (11,408 ) 1,032 (1,094 ) (1,272 ) Other income 5,331 6,179 15,143 11,850 23,185 38,503 48,281 Total non-interest income 42,848 43,413 49,509 34,164 56,660 169,934 175,111 Non-interest expense: Salaries and employee benefits 63,430 64,512 64,534 64,490 64,249 256,966 238,885 Occupancy and equipment 14,965 15,463 14,923 14,952 14,884 60,303 53,417 Data processing expense 9,107 9,103 9,151 8,968 9,062 36,329 34,942 Merger and acquisition expenses — — — — — — 49,594 Other operating expenses 39,673 25,684 27,674 26,234 30,708 119,265 98,789 Total non-interest expense 127,175 114,762 116,282 114,644 118,903 472,863 475,627 Income before income taxes 112,793 129,288 136,887 132,915 148,423 511,883 394,575 Income tax expense 26,550 30,835 31,616 29,953 32,736 118,954 89,313 Net income $ 86,243 $ 98,453 $ 105,271 $ 102,962 $ 115,687 $ 392,929 $ 305,262 Home BancShares, Inc. Selected Financial Information (Unaudited) Quarter Ended Year Ended (Dollars and shares in thousands, except per share data) Dec. 31,
2023Sep. 30,
2023Jun. 30,
2023Mar. 31,
2023Dec. 31,
2022Dec. 31,
2023Dec. 31,
2022PER SHARE DATA Diluted earnings per common share $ 0.43 $ 0.49 $ 0.52 $ 0.51 $ 0.57 $ 1.94 $ 1.57 Diluted earnings per common share, as adjusted (non-GAAP)(1) 0.46 0.47 0.51 0.54 0.53 1.97 1.93 Diluted earnings per common share, excluding FDIC special assessment (non-GAAP)(1) 0.48 0.49 0.52 0.51 0.57 1.99 1.57 Basic earnings per common share 0.43 0.49 0.52 0.51 0.57 1.94 1.57 Dividends per share - common 0.18 0.18 0.18 0.18 0.165 0.72 0.66 Book value per common share 18.81 18.06 18.04 17.87 17.33 18.81 17.33 Tangible book value per common share (non-GAAP)(1) 11.63 10.90 10.87 10.71 10.17 11.63 10.17 STOCK INFORMATION Average common shares outstanding 201,756 202,526 202,793 203,456 203,924 202,627 194,694 Average diluted shares outstanding 201,891 202,650 202,923 203,625 204,179 202,773 195,019 End of period common shares outstanding 201,526 202,323 202,573 203,168 203,434 201,526 203,434 ANNUALIZED PERFORMANCE METRICS Return on average assets (ROA) 1.55 % 1.78 % 1.90 % 1.84 % 1.98 % 1.77 % 1.35 % Return on average assets, as adjusted: (ROA, as adjusted) (non-GAAP)(1) 1.66 % 1.72 % 1.85 % 1.95 % 1.84 % 1.79 % 1.67 % Return on average assets excluding intangible amortization (non-GAAP)(1) 1.69 % 1.95 % 2.07 % 2.00 % 2.15 % 1.93 % 1.47 % Return on average assets, as adjusted, excluding intangible amortization (non-GAAP)(1) 1.81 % 1.87 % 2.02 % 2.12 % 2.00 % 1.95 % 1.80 % Return on average common equity (ROE) 9.36 % 10.65 % 11.63 % 11.70 % 13.29 % 10.82 % 9.17 % Return on average common equity, as adjusted: (ROE, as adjusted) (non-GAAP)(1) 10.00 % 10.25 % 11.33 % 12.38 % 12.35 % 10.97 % 11.29 % Return on average tangible common equity (ROTCE) (non-GAAP)(1) 15.49 % 17.62 % 19.39 % 19.75 % 22.96 % 18.03 % 15.30 % Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) (non-GAAP)(1) 16.56 % 16.95 % 18.90 % 20.90 % 21.33 % 18.28 % 18.84 % Return on average tangible common equity excluding intangible amortization (non-GAAP)(1) 15.80 % 17.95 % 19.74 % 20.11 % 23.33 % 18.36 % 15.63 % Return on average tangible common equity, as adjusted, excluding intangible amortization (non-GAAP)(1) 16.87 % 17.29 % 19.24 % 21.26 % 21.70 % 18.62 % 19.17 % (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 Year Ended (Dollars in thousands) Dec. 31,
2023Sep. 30,
2023Jun. 30,
2023Mar. 31,
2023Dec. 31,
2022Dec. 31,
2023Dec. 31,
2022Efficiency ratio 50.64 % 45.53 % 44.00 % 44.80 % 42.44 % 46.21 % 49.53 % Efficiency ratio, as adjusted (non-GAAP)(1) 46.43 % 46.44 % 44.83 % 43.42 % 43.07 % 45.24 % 44.55 % Net interest margin - FTE (NIM) 4.17 % 4.19 % 4.28 % 4.37 % 4.21 % 4.25 % 3.81 % Fully taxable equivalent adjustment $ 1,091 $ 1,293 $ 1,494 $ 1,628 $ 2,017 $ 5,506 $ 8,663 Total revenue (net) 245,618 245,350 257,152 248,759 272,326 996,879 933,787 Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) 118,443 130,588 140,870 134,115 153,423 524,016 458,160 PPNR, as adjusted (non-GAAP)(1) 126,402 125,743 137,308 142,062 142,567 531,515 493,143 Pre-tax net income to total revenue (net) 45.92 % 52.70 % 53.23 % 53.43 % 54.50 % 51.35 % 42.26 % Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1) 49.16 % 50.72 % 51.85 % 56.63 % 50.52 % 52.10 % 52.28 % P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) 48.22 % 53.23 % 54.78 % 53.91 % 56.34 % 52.57 % 49.06 % P5NR, as adjusted (non-GAAP)(1) 51.46 % 51.25 % 53.40 % 57.11 % 52.35 % 53.32 % 52.81 % Total purchase accounting accretion $ 2,324 $ 2,431 $ 2,660 $ 3,172 $ 3,497 $ 10,587 $ 16,341 Average purchase accounting loan discounts 27,397 29,915 32,546 35,482 38,552 31,334 38,055 OTHER OPERATING EXPENSES Hurricane expense $ — $ — $ — $ — $ 176 $ — $ 176 Advertising 2,226 2,295 2,098 2,231 2,567 8,850 7,974 Amortization of intangibles 2,253 2,477 2,478 2,477 2,478 9,685 8,853 Electronic banking expense 3,599 3,709 3,675 3,330 3,914 14,313 13,632 Directors' fees 399 417 538 460 358 1,814 1,491 Due from bank service charges 274 282 286 273 273 1,115 1,255 FDIC and state assessment 16,016 2,794 3,220 3,500 2,224 25,530 8,428 Insurance 873 878 927 889 1,003 3,567 3,705 Legal and accounting 1,192 1,514 1,436 1,088 5,962 5,230 9,401 Other professional fees 1,640 2,117 2,774 2,284 2,552 8,815 8,881 Operating supplies 777 860 763 738 690 3,138 3,120 Postage 503 491 586 501 602 2,081 2,078 Telephone 515 544 573 528 576 2,160 1,890 Other expense 9,406 7,306 8,320 7,935 7,333 32,967 27,905 Total other operating expenses $ 39,673 $ 25,684 $ 27,674 $ 26,234 $ 30,708 $ 119,265 $ 98,789 (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release. Home BancShares, Inc. Selected Financial Information (Unaudited) (Dollars in thousands) Dec. 31, 2023 Sep. 30, 2023 Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022 BALANCE SHEET RATIOS Total loans to total deposits 85.92 % 86.40 % 83.43 % 82.47 % 80.33 % Common equity to assets 16.73 % 16.65 % 16.51 % 16.12 % 15.41 % Tangible common equity to tangible assets (non-GAAP)(1) 11.05 % 10.76 % 10.65 % 10.33 % 9.66 % LOANS RECEIVABLE Real estate Commercial real estate loans Non-farm/non-residential $ 5,549,954 $ 5,614,259 $ 5,480,738 $ 5,524,125 $ 5,632,063 Construction/land development 2,293,047 2,154,030 2,201,514 2,160,514 2,135,266 Agricultural 325,156 336,160 340,067 342,814 346,811 Residential real estate loans Residential 1-4 family 1,844,260 1,808,248 1,790,218 1,748,231 1,748,551 Multifamily residential 435,736 444,239 455,754 637,633 578,052 Total real estate 10,448,153 10,356,936 10,268,291 10,413,317 10,440,743 Consumer 1,153,690 1,153,461 1,156,273 1,173,325 1,149,896 Commercial and industrial 2,324,991 2,195,678 2,288,646 2,368,428 2,349,263 Agricultural 307,327 332,608 297,743 250,851 285,235 Other 190,567 233,150 170,019 180,713 184,343 Loans receivable $ 14,424,728 $ 14,271,833 $ 14,180,972 $ 14,386,634 $ 14,409,480 ALLOWANCE FOR CREDIT LOSSES Balance, beginning of period $ 285,562 $ 285,683 $ 287,169 $ 289,669 $ 289,203 Loans charged off 3,592 3,449 4,726 4,288 5,379 Recoveries of loans previously charged off 614 528 940 588 845 Net loans charged off 2,978 2,921 3,786 3,700 4,534 Provision for credit losses - loans 5,650 2,800 2,300 1,200 5,000 Balance, end of period $ 288,234 $ 285,562 $ 285,683 $ 287,169 $ 289,669 Net charge-offs to average total loans 0.08 % 0.08 % 0.11 % 0.10 % 0.13 % Allowance for credit losses to total loans 2.00 % 2.00 % 2.01 % 2.00 % 2.01 % NON-PERFORMING ASSETS Non-performing loans Non-accrual loans $ 59,971 $ 84,184 $ 49,627 $ 65,401 $ 51,011 Loans past due 90 days or more 4,130 6,674 10,869 8,567 9,845 Total non-performing loans 64,101 90,858 60,496 73,968 60,856 Other non-performing assets Foreclosed assets held for sale, net 30,486 691 725 425 546 Other non-performing assets 785 64 64 74 74 Total other non-performing assets 31,271 755 789 499 620 Total non-performing assets $ 95,372 $ 91,613 $ 61,285 $ 74,467 $ 61,476 Allowance for credit losses for loans to non-performing loans 449.66 % 314.29 % 472.23 % 388.23 % 475.99 % Non-performing loans to total loans 0.44 % 0.64 % 0.43 % 0.51 % 0.42 % Non-performing assets to total assets 0.42 % 0.42 % 0.28 % 0.33 % 0.27 % (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release. Home BancShares, Inc. Consolidated Net Interest Margin (Unaudited) Three Months Ended December 31, 2023 September 30, 2023 (Dollars in thousands) Average
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
RateASSETS Earning assets Interest-bearing balances due from banks $ 337,821 $ 4,281 5.03 % $ 197,336 $ 2,328 4.68 % Federal funds sold 4,716 65 5.47 % 4,859 82 6.70 % Investment securities - taxable 3,444,715 34,016 3.92 % 3,598,513 34,520 3.81 % Investment securities - non-taxable - FTE 1,263,567 8,880 2.79 % 1,272,680 9,034 2.82 % Loans receivable - FTE 14,336,613 260,069 7.20 % 14,191,461 249,591 6.98 % Total interest-earning assets 19,387,432 307,311 6.29 % 19,264,849 295,555 6.09 % Non-earning assets 2,669,008 2,637,585 Total assets $ 22,056,440 $ 21,902,434 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest-bearing liabilities Savings and interest-bearing transaction accounts $ 10,912,668 $ 73,026 2.65 % $ 10,923,936 $ 68,067 2.47 % Time deposits 1,564,682 14,945 3.79 % 1,319,126 10,631 3.20 % Total interest-bearing deposits 12,477,350 87,971 2.80 % 12,243,062 78,698 2.55 % Federal funds purchased — — — % 54 1 7.35 % Securities sold under agreement to repurchase 162,102 1,480 3.62 % 154,687 1,344 3.45 % FHLB borrowed funds 905,689 9,878 4.33 % 773,345 8,161 4.19 % Subordinated debentures 439,906 4,121 3.72 % 440,054 4,121 3.72 % Total interest-bearing liabilities 13,985,047 103,450 2.93 % 13,611,202 92,325 2.69 % Non-interest bearing liabilities Non-interest bearing deposits 4,212,665 4,434,394 Other liabilities 202,008 189,499 Total liabilities 18,399,720 18,235,095 Shareholders' equity 3,656,720 3,667,339 Total liabilities and shareholders' equity $ 22,056,440 $ 21,902,434 Net interest spread 3.36 % 3.40 % Net interest income and margin - FTE $ 203,861 4.17 % $ 203,230 4.19 % Home BancShares, Inc. Consolidated Net Interest Margin (Unaudited) Year Ended December 31, 2023 December 31, 2022 (Dollars in thousands) Average
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
RateASSETS Earning assets Interest-bearing balances due from banks $ 319,733 $ 15,023 4.70 % $ 2,444,541 $ 29,110 1.19 % Federal funds sold 3,864 221 5.72 % 1,519 25 1.65 % Investment securities - taxable 3,655,632 138,575 3.79 % 3,582,664 91,933 2.57 % Investment securities - non-taxable - FTE 1,276,566 36,727 2.88 % 1,178,561 36,363 3.09 % Loans receivable - FTE 14,314,732 990,013 6.92 % 12,940,998 728,998 5.63 % Total interest-earning assets 19,570,527 1,180,559 6.03 % 20,148,283 886,429 4.40 % Non-earning assets 2,647,383 2,405,057 Total assets $ 22,217,910 $ 22,553,340 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest-bearing liabilities Savings and interest-bearing transaction accounts $ 11,162,244 $ 258,586 2.32 % $ 11,520,781 $ 81,061 0.70 % Time deposits 1,284,156 37,392 2.91 % 1,033,431 4,928 0.48 % Total interest-bearing deposits 12,446,400 295,978 2.38 % 12,554,212 85,989 0.68 % Federal funds purchased 44 3 6.82 % 220 2 0.91 % Securities sold under agreement to repurchase 149,014 4,813 3.23 % 129,006 1,430 1.11 % FHLB borrowed funds 753,152 30,825 4.09 % 473,839 11,076 2.34 % Subordinated debentures 440,125 16,489 3.75 % 515,049 20,593 4.00 % Total interest-bearing liabilities 13,788,735 348,108 2.52 % 13,672,326 119,090 0.87 % Non-interest bearing liabilities Non-interest bearing deposits 4,599,241 5,378,906 Other liabilities 198,634 171,390 Total liabilities 18,586,610 19,222,622 Shareholders' equity 3,631,300 3,330,718 Total liabilities and shareholders' equity $ 22,217,910 $ 22,553,340 Net interest spread 3.51 % 3.53 % Net interest income and margin - FTE $ 832,451 4.25 % $ 767,339 3.81 % Home BancShares, Inc. Non-GAAP Reconciliations (Unaudited) Quarter Ended Year Ended (Dollars and shares in thousands, except per share data) Dec. 31,
2023Sep. 30,
2023Jun. 30,
2023Mar. 31,
2023Dec. 31,
2022Dec. 31,
2023Dec. 31,
2022EARNINGS, AS ADJUSTED GAAP net income available to common shareholders (A) $ 86,243 $ 98,453 $ 105,271 $ 102,962 $ 115,687 $ 392,929 $ 305,262 Pre-tax adjustments FDIC special assessment 12,983 — — — — 12,983 — BOLI death benefits — (338 ) (2,779 ) — — (3,117 ) — Merger and acquisition expenses — — — — — — 49,594 Initial provision for credit losses - acquisition — — — — — — 58,585 Fair value adjustment for marketable securities (5,024 ) (4,507 ) (783 ) 11,408 (1,032 ) 1,094 1,272 Special dividend from equity investment — — — — — — (1,434 ) TRUPS redemption fees — — — — — — 2,081 Special lawsuit settlement, net of expense — — — — (10,000 ) — (10,000 ) Recoveries on historic losses — — — (3,461 ) — (3,461 ) (6,706 ) Hurricane expense — — — — 176 — 176 Total pre-tax adjustments 7,959 (4,845 ) (3,562 ) 7,947 (10,856 ) 7,499 93,568 Tax-effect of adjustments 1,989 (1,112 ) (879 ) 1,961 (2,679 ) 1,959 22,890 Total adjustments after-tax (B) 5,970 (3,733 ) (2,683 ) 5,986 (8,177 ) 5,540 70,678 Earnings, as adjusted (C) $ 92,213 $ 94,720 $ 102,588 $ 108,948 $ 107,510 $ 398,469 $ 375,940 Average diluted shares outstanding (D) 201,891 202,650 202,923 203,625 204,179 202,773 195,019 GAAP diluted earnings per share: (A/D) $ 0.43 $ 0.49 $ 0.52 $ 0.51 $ 0.57 $ 1.94 $ 1.57 Adjustments after-tax: (B/D) 0.03 (0.02 ) (0.01 ) 0.03 (0.04 ) 0.03 0.36 Diluted earnings per common share, as adjusted: (C/D) $ 0.46 $ 0.47 $ 0.51 $ 0.54 $ 0.53 $ 1.97 $ 1.93 EARNINGS, EXCLUDING FDIC SPECIAL ASSESSMENT GAAP net income available to common shareholders $ 86,243 $ 98,453 $ 105,271 $ 102,962 $ 115,687 $ 392,929 $ 305,262 FDIC special assessment 12,983 — — — — 12,983 — Tax-effect of FDIC special assessment 3,244 — — — — 3,244 — Adjustment after-tax 9,739 — — — — 9,739 — Earnings, excluding FDIC special assessment (A) $ 95,982 $ 98,453 $ 105,271 $ 102,962 $ 115,687 $ 402,668 $ 305,262 Average diluted shares outstanding (B) 201,891 202,650 202,923 203,625 204,179 202,773 195,019 Diluted earnings per common share, as adjusted: (A/B) $ 0.48 $ 0.49 $ 0.52 $ 0.51 $ 0.57 $ 1.99 $ 1.57 ANNUALIZED RETURN ON AVERAGE ASSETS Return on average assets: (A/E) 1.55 % 1.78 % 1.90 % 1.84 % 1.98 % 1.77 % 1.35 % Return on average assets, as adjusted: (ROA, as adjusted) ((A+D)/E) 1.66 % 1.72 % 1.85 % 1.95 % 1.84 % 1.79 % 1.67 % Return on average assets excluding intangible amortization: ((A+C)/(E-F)) 1.69 % 1.95 % 2.07 % 2.00 % 2.15 % 1.93 % 1.47 % Return on average assets, as adjusted, excluding intangible amortization: ((A+C+D)/(E-F)) 1.81 % 1.87 % 2.02 % 2.12 % 2.00 % 1.95 % 1.80 % GAAP net income available to common shareholders (A) $ 86,243 $ 98,453 $ 105,271 $ 102,962 $ 115,687 $ 392,929 $ 305,262 Amortization of intangibles (B) 2,253 2,477 2,478 2,477 2,478 9,685 8,853 Amortization of intangibles after-tax (C) 1,690 1,866 1,866 1,866 1,866 7,288 6,624 Adjustments after-tax (D) 5,970 (3,733 ) (2,683 ) 5,986 (8,177 ) 5,540 70,678 Average assets (E) 22,056,440 21,902,434 22,227,404 22,695,855 23,187,005 22,217,910 22,553,340 Average goodwill & core deposit intangible (F) 1,448,061 1,450,478 1,452,951 1,455,423 1,454,639 1,451,705 1,335,216 Home BancShares, Inc. Non-GAAP Reconciliations (Unaudited) Quarter Ended Year Ended (Dollars in thousands) Dec. 31,
2023Sep. 30,
2023Jun. 30,
2023Mar. 31,
2023Dec. 31,
2022Dec. 31,
2023Dec. 31,
2022ANNUALIZED RETURN ON AVERAGE COMMON EQUITY Return on average common equity: (A/D) 9.36 % 10.65 % 11.63 % 11.70 % 13.29 % 10.82 % 9.17 % Return on average common equity, as adjusted: (ROE, as adjusted) ((A+C)/D) 10.00 % 10.25 % 11.33 % 12.38 % 12.35 % 10.97 % 11.29 % Return on average tangible common equity: (A/(D-E)) 15.49 % 17.62 % 19.39 % 19.75 % 22.96 % 18.03 % 15.30 % Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) ((A+C)/(D-E)) 16.56 % 16.95 % 18.90 % 20.90 % 21.33 % 18.28 % 18.84 % Return on average tangible common equity excluding intangible amortization: (B/(D-E)) 15.80 % 17.95 % 19.74 % 20.11 % 23.33 % 18.36 % 15.63 % Return on average tangible common equity, as adjusted, excluding intangible amortization: ((B+C)/(D-E)) 16.87 % 17.29 % 19.24 % 21.26 % 21.70 % 18.62 % 19.17 % GAAP net income available to common shareholders (A) $ 86,243 $ 98,453 $ 105,271 $ 102,962 $ 115,687 $ 392,929 $ 305,262 Earnings excluding intangible amortization (B) 87,933 100,319 107,137 104,828 117,553 400,217 311,886 Adjustments after-tax (C) 5,970 (3,733 ) (2,683 ) 5,986 (8,177 ) 5,540 70,678 Average common equity (D) 3,656,720 3,667,339 3,630,194 3,569,592 3,454,005 3,631,300 3,330,718 Average goodwill & core deposits intangible (E) 1,448,061 1,450,478 1,452,951 1,455,423 1,454,639 1,451,705 1,335,216 EFFICIENCY RATIO & P5NR Efficiency ratio: ((D-H)/(B+C+E)) 50.64 % 45.53 % 44.00 % 44.80 % 42.44 % 46.21 % 49.53 % Efficiency ratio, as adjusted: ((D-H-J)/(B+C+E-I)) 46.43 % 46.44 % 44.83 % 43.42 % 43.07 % 45.24 % 44.55 % Pre-tax net income to total revenue (net) (A/(B+C)) 45.92 % 52.70 % 53.23 % 53.43 % 54.50 % 51.35 % 42.26 % Pre-tax net income, as adjusted, to total revenue (net) ((A+F)/(B+C)) 49.16 % 50.72 % 51.85 % 56.63 % 50.52 % 52.10 % 52.28 % Pre-tax, pre-provision, net income (PPNR) (B+C-D) $ 118,443 $ 130,588 $ 140,870 $ 134,115 $ 153,423 $ 524,016 $ 458,160 Pre-tax, pre-provision, net income, as adjusted (B+C-D+F-G) 126,402 125,743 137,308 142,062 142,567 531,515 493,143 P5NR (Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C) 48.22 % 53.23 % 54.78 % 53.91 % 56.34 % 52.57 % 49.06 % P5NR, as adjusted (B+C-D+F-G)/(B+C) 51.46 % 51.25 % 53.40 % 57.11 % 52.35 % 53.32 % 52.81 % Pre-tax net income (A) $ 112,793 $ 129,288 $ 136,887 $ 132,915 $ 148,423 $ 511,883 $ 394,575 Net interest income (B) 202,770 201,937 207,643 214,595 215,666 826,945 758,676 Non-interest income (C) 42,848 43,413 49,509 34,164 56,660 169,934 175,111 Non-interest expense (D) 127,175 114,762 116,282 114,644 118,903 472,863 475,627 Fully taxable equivalent adjustment (E) 1,091 1,293 1,494 1,628 2,017 5,506 8,663 Total pre-tax adjustments (F) 7,959 (4,845 ) (3,562 ) 7,947 (10,856 ) 7,499 93,568 Initial provision for credit losses - acquisition (G) — — — — — — 58,585 Amortization of intangibles (H) 2,253 2,477 2,478 2,477 2,478 9,685 8,853 Adjustments: Non-interest income: Fair value adjustment for marketable securities $ 5,024 $ 4,507 $ 783 $ (11,408 ) $ 1,032 $ (1,094 ) $ (1,272 ) Gain on OREO 13 — 319 — 13 332 500 Gain (loss) on branches, equipment and other assets, net 583 — 917 7 10 1,507 15 Special dividend from equity investment — — — — — — 1,434 BOLI death benefits — 338 2,779 — — 3,117 — Lawsuit settlement - special lawsuit — — — — 15,000 — 15,000 Recoveries on historic losses — — — 3,461 — 3,461 6,706 Total non-interest income adjustments (I) $ 5,620 $ 4,845 $ 4,798 $ (7,940 ) $ 16,055 $ 7,323 $ 22,383 Non-interest expense: FDIC special assessment 12,983 — — — — 12,983 — Merger and acquisition expenses — — — — — — 49,594 Hurricane expense — — — — 176 — 176 Legal expense - special lawsuit — — — — 5,000 — 5,000 TRUPS redemption fees — — — — — — 2,081 Total non-interest expense adjustments (J) $ 12,983 $ — $ — $ — $ 5,176 $ 12,983 $ 56,851 Home BancShares, Inc. Non-GAAP Reconciliations (Unaudited) Quarter Ended Dec. 31, 2023 Sep. 30, 2023 Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022 TANGIBLE BOOK VALUE PER COMMON SHARE Book value per common share: (A/B) $ 18.81 $ 18.06 $ 18.04 $ 17.87 $ 17.33 Tangible book value per common share: ((A-C-D)/B) 11.63 10.90 10.87 10.71 10.17 Total stockholders' equity (A) $ 3,791,075 $ 3,654,874 $ 3,654,084 $ 3,630,885 $ 3,526,362 End of period common shares outstanding (B) 201,526 202,323 202,573 203,168 203,434 Goodwill (C) 1,398,253 1,398,253 1,398,253 1,398,253 1,398,253 Core deposit and other intangibles (D) 48,770 51,023 53,500 55,978 58,455 TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS Equity to assets: (B/A) 16.73 % 16.65 % 16.51 % 16.12 % 15.41 % Tangible common equity to tangible assets: ((B-C-D)/(A-C-D)) 11.05 % 10.76 % 10.65 % 10.33 % 9.66 % Total assets (A) $ 22,656,658 $ 21,950,638 $ 22,126,429 $ 22,518,255 $ 22,883,588 Total stockholders' equity (B) 3,791,075 3,654,874 3,654,084 3,630,885 3,526,362 Goodwill (C) 1,398,253 1,398,253 1,398,253 1,398,253 1,398,253 Core deposit and other intangibles (D) 48,770 51,023 53,500 55,978 58,455