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HOMB’s Safe Harbor for Uninsured Deposits, Strong Asset Quality and Profitability Among Shining Stars in the Second Quarter of 2023
Источник: Nasdaq GlobeNewswire / 20 июл 2023 08:15:01 America/New_York
CONWAY, Ark., July 20, 2023 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NYSE: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.
Highlights of the Second Quarter of 2023:
Metric Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Net income $105.3 million $103.0 million $115.7 million $108.7 million $16.0 million Total revenue (net) $257.2 million $248.8 million $272.3 million $256.3 million $243.3 million Income before income taxes $136.9 million $132.9 million $148.4 million $142.0 million $19.3 million Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) $140.9 million $134.1 million $153.4 million $142.0 million $77.9 million Pre-tax net income to total revenue (net) 53.23% 53.43% 54.50% 55.39% 7.92% P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) 54.78% 53.91% 56.34% 55.39% 32.00% ROA 1.90% 1.84% 1.98% 1.81% 0.26% NIM 4.28% 4.37% 4.21% 4.05% 3.64% Purchase accounting accretion $2.7 million $3.2 million $3.5 million $4.6 million $5.2 million ROE 11.63% 11.70% 13.29% 12.25% 1.78% ROTCE (non-GAAP)(1) 19.39% 19.75% 22.96% 20.93% 2.96% Diluted earnings per share $0.52 $0.51 $0.57 $0.53 $0.08 Non-performing assets to total assets 0.28% 0.33% 0.27% 0.27% 0.25% Common equity tier 1 capital 13.6% 13.2% 12.9% 13.0% 12.8% Leverage 11.9% 11.4% 10.9% 10.4% 9.8% Tier 1 capital 13.6% 13.2% 12.9% 13.0% 12.9% Total risk-based capital 17.3% 16.8% 16.5% 16.7% 16.6% Allowance for credit losses to total loans 2.01% 2.00% 2.01% 2.09% 2.11% (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
“The first six months of 2023 have been a challenging time for the banking industry; however, I am proud of the fortitude shown by Home BancShares. Our performance metrics, in the second quarter, were impressive, and I am the most proud of the fact that we can more than cover our uninsured and uncollateralized deposits. We have worked hard to protect all deposits (insured and uninsured), our shareholders, our customers and our employees. It is our committed goal to keep Home BancShares, Centennial Bank and Happy State Bank in this position,” said John Allison, Chairman and CEO of HOMB.
“Our asset quality continues to remain strong with improvements from the first quarter in nonperforming loans to total loans, nonperforming assets to total assets and non-accruals. Our disciplined underwriting is a core focus for Centennial Bank, and the proof is certainly in the pudding,” said Tracy French, President and CEO of Centennial Bank.
Liquidity and Funding Sources
At June 30, 2023, the Company held $1.71 billion in net available internal liquidity. This balance consisted of $1.20 billion in unpledged investment securities which could be used for additional secured borrowing capacity, $307.8 million in cash with the Federal Reserve Bank (FRB) and $205.4 million in other liquid cash accounts.
Consistent with the Company’s practice of maintaining access to significant external liquidity, the Company had $4.90 billion in net available external liquidity as of June 30, 2023. This included $5.20 billion in available liquidity with the Federal Home Loan Bank (FHLB), of which $1.83 billion has been drawn upon in the ordinary course of business, resulting in $3.37 billion in net available liquidity with the FHLB as of June 30, 2023. The $1.83 billion consisted of $650.0 million in outstanding FHLB advances and $1.18 billion used for pledging purposes. The Company also had access to approximately $1.48 billion in liquidity with the FRB as of June 30, 2023, of which $50.0 million has been drawn upon in the ordinary course of business, resulting in $1.43 billion in net available liquidity with the FRB as of June 30, 2023. The $1.43 billion consisted of $77.4 million available from the Discount Window and $1.35 billion available through the Bank Term Funding Program (BTFP). As of June 30, 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 $6.61 billion net available liquidity as of June 30, 2023, which consisted of $1.71 billion of net available internal liquidity and $4.90 billion in net available external liquidity. Details on the Company’s available liquidity as of June 30, 2023 is available below.
(in thousands) Total Available Amount Used Net Availability Internal Sources Unpledged investment securities (market value) $ 1,196,466 $ — $ 1,196,466 Cash at FRB 307,765 — 307,765 Other liquid cash accounts 205,389 — 205,389 Total Internal Liquidity 1,709,620 — 1,709,620 External Sources FHLB 5,201,184 1,827,490 3,373,694 FRB Discount Window 77,440 — 77,440 BTFP (par value) 1,403,388 50,000 1,353,388 FNBB 55,000 — 55,000 Other 45,000 — 45,000 Total External Liquidity 6,782,012 1,877,490 4,904,522 Total Available Liquidity $ 8,491,632 $ 1,877,490 $ 6,614,142
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 June 30, 2023, the Company held approximately $7.69 billion in uninsured deposits of which $2.76 billion were collateralized deposits, for a net position of $4.93 billion. This represents approximately 29.0% of total deposits. In addition, net available liquidity exceeded uninsured and uncollateralized deposits by $2.11 billion.(in thousands) As of
June 30, 2023Uninsured Deposits $ 7,688,248 Collateralized Deposits 2,761,675 Net Uninsured Position $ 4,926,573 Total Available Liquidity $ 6,614,142 Net Uninsured Position 4,926,573 Net Available Liquidity in Excess of Uninsured Deposits $ 1,687,569
In the event the Company’s $4.93 billion net position of uninsured deposits had been called by depositors on the first day of the second quarter of 2023 and remained outstanding during the entire quarter, the Company estimates that interest expense would have increased by approximately $69.6 million for the period ended June 30, 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 1.26% for the period ended June 30, 2023.For the first quarter, the Company ranked 8th in the top 200 exchange-traded banks in the country for ROA(2). The Company’s second quarter ROA of 1.90% is an impressive improvement from 1.84% for the first quarter and should retain a ranking in the top 10 for the second quarter.
Operating Highlights
Net income for the three-month period ended June 30, 2023 was $105.3 million, or $0.52 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 $102.6 million(1), and $0.51 per share(1), respectively, for the three months ended June 30, 2023.
Our net interest margin was 4.28% for the three-month period ended June 30, 2023, compared to 4.37% for the three-month period ended March 31, 2023. The yield on loans was 6.84% and 6.64% for the three months ended June 30, 2023 and March 31, 2023, respectively, as average loans decreased from $14.47 billion to $14.26 billion. Additionally, the rate on interest bearing deposits increased to 2.27% as of June 30, 2023, from 1.90% as of March 31, 2023, while average interest-bearing balances decreased from $12.65 billion to $12.42 billion.
During the second quarter of 2023, there was $1.3 million of event interest income compared to event interest income of $2.1 million for the first quarter of 2023.
Purchase accounting accretion on acquired loans was $2.7 million and $3.2 million and average purchase accounting loan discounts were $32.5 million and $35.5 million for the three-month periods ended June 30, 2023 and March 31, 2023, respectively.
Net interest income on a fully taxable equivalent basis was $209.1 million for the three-month period ended June 30, 2023, and $216.2 million for the three-month period ended March 31, 2023. This reduction in net interest income for the three-month period ended June 30, 2023, was the result of an $11.6 million increase in interest expense, partially offset by an $4.6 million increase in interest income. The $11.6 million increase in interest expense was due to an $11.0 million increase in interest expense on deposits, a $406,000 increase in interest expense on FHLB borrowed funds and a $253,000 increase in interest expense on securities sold under agreement to repurchase. The increase in interest expense is a result of the rising interest rate environment. The $4.6 million increase in interest income was primarily the result of a $6.1 million increase in loan interest income, partially offset by a $1.0 million decrease in income from interest-bearing balances due from banks and a $687,000 decrease in investment income. The increase in interest income is also a result of the rising interest rate environment.
The Company reported $49.5 million of non-interest income for the second quarter of 2023. The most important components of second quarter non-interest income were $15.1 million from other income, $11.8 million from other service charges and fees, $9.2 million from service charges on deposit accounts, $4.1 million from trust fees, $2.9 million from dividends from FHLB, FRB, FNBB and other, $2.7 million in mortgage lending income and a $1.2 million increase in cash value of life insurance. The $15.1 million in other income includes $2.8 million in bank owned life insurance “BOLI” death benefit income.
Non-interest expense for the second quarter of 2023 was $116.3 million. The most important components of non-interest expense were $64.5 million from salaries and employee benefits, $27.7 million in other operating expense, $14.9 million in occupancy and equipment expenses and $9.2 million in data processing expenses. For the second quarter of 2023, our efficiency ratio was 44.00%, and our efficiency ratio, as adjusted (non-GAAP), was 44.83%(1).
Financial Condition
Total loans receivable were $14.18 billion at June 30, 2023, compared to $14.39 billion at March 31, 2023. Total deposits were $17.00 billion at June 30, 2023, compared to $17.45 billion at March 31, 2023. Total assets were $22.13 billion at June 30, 2023, compared to $22.52 billion at March 31, 2023.
During the second quarter of 2023, the Company experienced approximately $205.7 million in loan decline. Centennial CFG experienced $314.3 million of organic loan decline and had loans of $1.86 billion at June 30, 2023. Our remaining markets experienced $108.8 million in organic loan growth during the quarter.
Non-performing loans to total loans was 0.43% and 0.51% at June 30, 2023 and March 31, 2023, respectively. Non-performing assets to total assets was 0.28% and 0.33% at June 30, 2023 and March 31, 2023, respectively. Net charge-offs were $3.8 million and $3.7 million for the three months ended June 30, 2023 and March 31, 2023, respectively.
Non-performing loans at June 30, 2023 were $11.2 million, $19.7 million, $22.6 million, $382,000, $3.8 million and $2.8 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $60.5 million. Non-performing assets at June 30, 2023 were $11.3 million, $20.0 million, $23.0 million, $382,000, $3.8 million and $2.8 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $61.3 million.
The Company’s allowance for credit losses on loans was $285.7 million at June 30, 2023, or 2.01% of total loans, compared to the allowance for credit losses on loans of $287.2 million, or 2.00% of total loans, at March 31, 2023. As of June 30, 2023 and March 31, 2023, the Company’s allowance for credit losses on loans was 472.23% and 388.23% of its total non-performing loans, respectively.
Stockholders’ equity was $3.65 billion at June 30, 2023, compared to $3.63 billion at March 31, 2023, an increase of approximately $23.2 million. The increase in stockholders’ equity is primarily associated with the $68.8 million increase in retained earnings, partially offset by the $36.4 million increase in accumulated other comprehensive loss and $11.8 million in stock repurchases. Book value per common share was $18.04 at June 30, 2023, compared to $17.87 at March 31, 2023. Tangible book value per common share (non-GAAP) was $10.87(1) at June 30, 2023, compared to $10.71(1) at March 31, 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, July 20, 2023. 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/803091970. 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=7b6f0651&confId=52560. 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: 094402. A replay of the call will be available by calling 1-866-813-9403, Passcode: 607184, which will be available until July 27, 2023, 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.
(2) The Company estimated this ranking based on available industry data.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 may contain forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future events, performance or results. When we use words like “may,” “plan,” “propose,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,” “would,” 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, 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.
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) Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022 Sep. 30, 2022 Jun. 30, 2022 ASSETS Cash and due from banks $ 275,656 $ 250,841 $ 263,893 $ 268,929 $ 287,451 Interest-bearing deposits with other banks 335,535 437,213 460,897 1,311,492 2,528,925 Cash and cash equivalents 611,191 688,054 724,790 1,580,421 2,816,376 Federal funds sold 1,550 — — 2,700 — Investment securities - available-for-sale, net of allowance for credit losses 3,645,013 3,772,138 4,041,590 4,085,102 3,791,509 Investment securities - held-to-maturity, net of allowance for credit losses 1,285,150 1,286,373 1,287,705 1,251,007 1,366,781 Total investment securities 4,930,163 5,058,511 5,329,295 5,336,109 5,158,290 Loans receivable 14,180,972 14,386,634 14,409,480 13,829,311 13,923,873 Allowance for credit losses (285,683 ) (287,169 ) (289,669 ) (289,203 ) (294,267 ) Loans receivable, net 13,895,289 14,099,465 14,119,811 13,540,108 13,629,606 Bank premises and equipment, net 397,315 402,094 405,073 411,479 415,056 Foreclosed assets held for sale 725 425 546 365 373 Cash value of life insurance 213,090 214,792 213,693 212,619 211,811 Accrued interest receivable 101,066 102,740 103,199 88,671 80,274 Deferred tax asset, net 206,430 193,334 209,321 228,979 208,585 Goodwill 1,398,253 1,398,253 1,398,253 1,394,353 1,398,400 Core deposit intangible 53,500 55,978 58,455 60,932 63,410 Other assets 317,857 304,609 321,152 300,634 270,987 Total assets $ 22,126,429 $ 22,518,255 $ 22,883,588 $ 23,157,370 $ 24,253,168 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits: Demand and non-interest-bearing $ 4,598,593 $ 4,945,729 $ 5,164,997 $ 5,540,539 $ 6,036,583 Savings and interest-bearing transaction accounts 11,169,940 11,392,566 11,730,552 11,968,519 12,424,192 Time deposits 1,228,358 1,107,171 1,043,234 1,033,266 1,119,297 Total deposits 16,996,891 17,445,466 17,938,783 18,542,324 19,580,072 Securities sold under agreements to repurchase 160,349 138,742 131,146 121,555 118,573 FHLB and other borrowed funds 701,550 650,000 650,000 400,000 400,000 Accrued interest payable and other liabilities 173,426 212,887 196,877 192,908 197,503 Subordinated debentures 440,129 440,275 440,420 440,568 458,455 Total liabilities 18,472,345 18,887,370 19,357,226 19,697,355 20,754,603 Stockholders' equity Common stock 2,026 2,032 2,034 2,042 2,053 Capital surplus 2,366,560 2,375,754 2,386,699 2,404,388 2,426,271 Retained earnings 1,578,176 1,509,400 1,443,087 1,361,040 1,286,146 Accumulated other comprehensive loss (292,678 ) (256,301 ) (305,458 ) (307,455 ) (215,905 ) Total stockholders' equity 3,654,084 3,630,885 3,526,362 3,460,015 3,498,565 Total liabilities and stockholders' equity $ 22,126,429 $ 22,518,255 $ 22,883,588 $ 23,157,370 $ 24,253,168 Home BancShares, Inc. Consolidated Statements of Income (Unaudited) Quarter Ended Six Months Ended (In thousands) Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022 Sep. 30, 2022 Jun. 30, 2022 Jun. 30, 2023 Jun. 30, 2022 Interest income: Loans $ 243,152 $ 236,997 $ 221,280 $ 195,841 $ 181,779 $ 480,149 $ 311,221 Investment securities Taxable 34,751 35,288 33,639 28,273 20,941 70,039 30,021 Tax-exempt 7,932 7,963 7,855 8,069 7,725 15,895 12,432 Deposits - other banks 3,729 4,685 10,109 10,763 6,565 8,414 8,238 Federal funds sold 68 6 12 9 3 74 4 Total interest income 289,632 284,939 272,895 242,955 217,013 574,571 361,916 Interest expense: Interest on deposits 70,147 59,162 47,019 23,347 10,729 129,309 15,623 Federal funds purchased 2 — — — 2 2 2 FHLB borrowed funds 6,596 6,190 5,388 1,917 1,896 12,786 3,771 Securities sold under agreements to repurchase 1,121 868 701 434 187 1,989 295 Subordinated debentures 4,123 4,124 4,121 4,153 5,441 8,247 12,319 Total interest expense 81,989 70,344 57,229 29,851 18,255 152,333 32,010 Net interest income 207,643 214,595 215,666 213,104 198,758 422,238 329,906 Provision for credit losses on loans 2,300 1,200 5,000 — 45,170 3,500 45,170 Provision for credit losses on unfunded commitments — — — — 11,410 — 11,410 Provision for credit losses on investment securities 1,683 — — — 2,005 1,683 2,005 Total credit loss expense 3,983 1,200 5,000 — 58,585 5,183 58,585 Net interest income after credit loss expense 203,660 213,395 210,666 213,104 140,173 417,055 271,321 Non-interest income: Service charges on deposit accounts 9,231 9,842 10,134 10,756 10,084 19,073 16,224 Other service charges and fees 11,763 11,875 10,363 13,951 12,541 23,638 20,274 Trust fees 4,052 4,864 3,981 3,980 4,320 8,916 4,894 Mortgage lending income 2,650 2,571 3,566 4,179 5,996 5,221 9,912 Insurance commissions 518 526 453 601 658 1,044 1,138 Increase in cash value of life insurance 1,211 1,104 1,079 1,089 1,140 2,315 1,632 Dividends from FHLB, FRB, FNBB & other 2,922 2,794 2,814 1,741 3,945 5,716 4,643 Gain on SBA loans — 139 30 58 — 139 95 Gain (loss) on branches, equipment and other assets, net 917 7 10 (13 ) 2 924 18 Gain on OREO, net 319 — 13 — 9 319 487 Fair value adjustment for marketable securities 783 (11,408 ) 1,032 (2,628 ) (1,801 ) (10,625 ) 324 Other income 15,143 11,850 23,185 9,487 7,687 26,993 15,609 Total non-interest income 49,509 34,164 56,660 43,201 44,581 83,673 75,250 Non-interest expense: Salaries and employee benefits 64,534 64,490 64,249 65,290 65,795 129,024 109,346 Occupancy and equipment 14,923 14,952 14,884 15,133 14,256 29,875 23,400 Data processing expense 9,151 8,968 9,062 8,747 10,094 18,119 17,133 Merger and acquisition expenses — — — — 48,731 — 49,594 Other operating expenses 27,674 26,234 30,708 25,176 26,606 53,908 42,905 Total non-interest expense 116,282 114,644 118,903 114,346 165,482 230,926 242,378 Income before income taxes 136,887 132,915 148,423 141,959 19,272 269,802 104,193 Income tax expense 31,616 29,953 32,736 33,254 3,294 61,569 23,323 Net income $ 105,271 $ 102,962 $ 115,687 $ 108,705 $ 15,978 $ 208,233 $ 80,870 Home BancShares, Inc. Selected Financial Information (Unaudited) Quarter Ended Six Months Ended (Dollars and shares in thousands, except per share data) Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022 Sep. 30, 2022 Jun. 30, 2022 Jun. 30, 2023 Jun. 30, 2022 PER SHARE DATA Diluted earnings per common share $ 0.52 $ 0.51 $ 0.57 $ 0.53 $ 0.08 $ 1.02 $ 0.44 Diluted earnings per common share, as adjusted (non-GAAP)(1) 0.51 0.54 0.53 0.54 0.47 1.04 0.86 Basic earnings per common share 0.52 0.51 0.57 0.53 0.08 1.03 0.44 Dividends per share - common 0.18 0.18 0.165 0.165 0.165 0.36 0.33 Book value per common share 18.04 17.87 17.33 16.94 17.04 18.04 17.04 Tangible book value per common share (non-GAAP)(1) 10.87 10.71 10.17 9.82 9.92 10.87 9.92 STOCK INFORMATION Average common shares outstanding 202,793 203,456 203,924 204,829 205,683 203,122 184,851 Average diluted shares outstanding 202,923 203,625 204,179 205,135 206,015 203,274 185,223 End of period common shares outstanding 202,573 203,168 203,434 204,219 205,291 202,573 205,291 ANNUALIZED PERFORMANCE METRICS Return on average assets (ROA) 1.90 % 1.84 % 1.98 % 1.81 % 0.26 % 1.87 % 0.75 % Return on average assets, as adjusted: (ROA, as adjusted) (non-GAAP)(1) 1.85 % 1.95 % 1.84 % 1.83 % 1.57 % 1.90 % 1.48 % Return on average assets excluding intangible amortization (non-GAAP)(1) 2.07 % 2.00 % 2.15 % 1.97 % 0.31 % 2.03 % 0.83 % Return on average assets, as adjusted, excluding intangible amortization (non-GAAP)(1) 2.02 % 2.12 % 2.00 % 1.99 % 1.70 % 2.07 % 1.60 % Return on average common equity (ROE) 11.63 % 11.70 % 13.29 % 12.25 % 1.78 % 11.66 % 5.14 % Return on average common equity, as adjusted: (ROE, as adjusted) (non-GAAP)(1) 11.33 % 12.38 % 12.35 % 12.39 % 10.83 % 11.85 % 10.08 % Return on average tangible common equity (ROTCE) (non-GAAP)(1) 19.39 % 19.75 % 22.96 % 20.93 % 2.96 % 19.57 % 8.32 % Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) (non-GAAP)(1) 18.90 % 20.90 % 21.33 % 21.16 % 17.94 % 19.88 % 16.31 % Return on average tangible common equity excluding intangible amortization (non-GAAP)(1) 19.74 % 20.11 % 23.33 % 21.29 % 3.30 % 19.92 % 8.62 % Return on average tangible common equity, as adjusted, excluding intangible amortization (non-GAAP)(1) 19.24 % 21.26 % 21.70 % 21.52 % 18.29 % 20.23 % 16.61 % (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 Six Months Ended (Dollars in thousands) Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022 Sep. 30, 2022 Jun. 30, 2022 Jun. 30, 2023 Jun. 30, 2022 Efficiency ratio 44.00 % 44.80 % 42.44 % 43.24 % 66.31 % 44.39 % 58.26 % Efficiency ratio, as adjusted (non-GAAP)(1) 44.83 % 43.42 % 43.07 % 42.97 % 46.02 % 44.12 % 46.53 % Net interest margin - FTE (NIM) 4.28 % 4.37 % 4.21 % 4.05 % 3.64 % 4.33 % 3.46 % Fully taxable equivalent adjustment $ 1,494 $ 1,628 $ 2,017 $ 2,437 $ 2,471 $ 3,122 $ 4,209 Total revenue (net) 257,152 248,759 272,326 256,305 243,339 505,911 405,156 Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) 140,870 134,115 153,423 141,959 77,857 274,985 162,778 PPNR, as adjusted (non-GAAP)(1) 137,308 142,062 142,567 143,522 126,683 279,370 207,054 Pre-tax net income to total revenue (net) 53.23 % 53.43 % 54.50 % 55.39 % 7.92 % 53.33 % 25.72 % Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1) 51.85 % 56.63 % 50.52 % 56.00 % 52.06 % 54.20 % 51.10 % P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) 54.78 % 53.91 % 56.34 % 55.39 % 32.00 % 54.35 % 40.18 % P5NR, as adjusted (non-GAAP)(1) 53.40 % 57.11 % 52.35 % 56.00 % 52.06 % 55.22 % 51.10 % Total purchase accounting accretion $ 2,660 $ 3,172 $ 3,497 $ 4,578 $ 5,177 $ 5,832 $ 8,266 Average purchase accounting loan discounts 32,546 35,482 38,552 42,050 46,258 34,022 35,814 OTHER OPERATING EXPENSES Hurricane expense $ — $ — $ 176 $ — $ — $ — $ — Advertising 2,098 2,231 2,567 2,024 2,117 4,329 3,383 Amortization of intangibles 2,478 2,477 2,478 2,477 2,477 4,955 3,898 Electronic banking expense 3,675 3,330 3,914 3,828 3,352 7,005 5,890 Directors' fees 538 460 358 354 375 998 779 Due from bank service charges 286 273 273 316 396 559 666 FDIC and state assessment 3,220 3,500 2,224 2,146 2,390 6,720 4,058 Insurance 927 889 1,003 959 973 1,816 1,743 Legal and accounting 1,436 1,088 5,962 1,581 1,061 2,524 1,858 Other professional fees 2,774 2,284 2,552 2,466 2,254 5,058 3,863 Operating supplies 763 738 690 681 995 1,501 1,749 Postage 586 501 602 614 556 1,087 862 Telephone 573 528 576 593 384 1,101 721 Other expense 8,320 7,935 7,333 7,137 9,276 16,255 13,435 Total other operating expenses $ 27,674 $ 26,234 $ 30,708 $ 25,176 $ 26,606 $ 53,908 $ 42,905 (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) Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022 Sep. 30, 2022 Jun. 30, 2022 BALANCE SHEET RATIOS Total loans to total deposits 83.43 % 82.47 % 80.33 % 74.58 % 71.11 % Common equity to assets 16.51 % 16.12 % 15.41 % 14.94 % 14.43 % Tangible common equity to tangible assets (non-GAAP)(1) 10.65 % 10.33 % 9.66 % 9.24 % 8.94 % LOANS RECEIVABLE Real estate Commercial real estate loans Non-farm/non-residential $ 5,480,738 $ 5,524,125 $ 5,632,063 $ 5,156,438 $ 5,092,539 Construction/land development 2,201,514 2,160,514 2,135,266 2,232,906 2,595,384 Agricultural 340,067 342,814 346,811 330,748 329,106 Residential real estate loans Residential 1-4 family 1,790,218 1,748,231 1,748,551 1,704,850 1,708,221 Multifamily residential 455,754 637,633 578,052 525,110 389,633 Total real estate 10,268,291 10,413,317 10,440,743 9,950,052 10,114,883 Consumer 1,156,273 1,173,325 1,149,896 1,120,250 1,106,343 Commercial and industrial 2,288,646 2,368,428 2,349,263 2,268,750 2,187,771 Agricultural 297,743 250,851 285,235 313,693 324,630 Other 170,019 180,713 184,343 176,566 190,246 Loans receivable $ 14,180,972 $ 14,386,634 $ 14,409,480 $ 13,829,311 $ 13,923,873 ALLOWANCE FOR CREDIT LOSSES Balance, beginning of period $ 287,169 $ 289,669 $ 289,203 $ 294,267 $ 234,768 Allowance for credit losses on PCD loans - Happy acquisition — — — — 16,816 Loans charged off 4,726 4,288 5,379 6,313 3,265 Recoveries of loans previously charged off 940 588 845 1,249 778 Net loans charged off 3,786 3,700 4,534 5,064 2,487 Provision for credit losses - Happy acquisition — — — — 45,170 Provision for credit losses - loans 2,300 1,200 5,000 — — Balance, end of period $ 285,683 $ 287,169 $ 289,669 $ 289,203 $ 294,267 Net charge-offs to average total loans 0.11 % 0.10 % 0.13 % 0.15 % 0.07 % Allowance for credit losses to total loans 2.01 % 2.00 % 2.01 % 2.09 % 2.11 % NON-PERFORMING ASSETS Non-performing loans Non-accrual loans $ 49,627 $ 65,401 $ 51,011 $ 56,796 $ 44,170 Loans past due 90 days or more 10,869 8,567 9,845 4,898 16,432 Total non-performing loans 60,496 73,968 60,856 61,694 60,602 Other non-performing assets Foreclosed assets held for sale, net 725 425 546 365 373 Other non-performing assets 64 74 74 104 104 Total other non-performing assets 789 499 620 469 477 Total non-performing assets $ 61,285 $ 74,467 $ 61,476 $ 62,163 $ 61,079 Allowance for credit losses for loans to non-performing loans 472.23 % 388.23 % 475.99 % 468.77 % 485.57 % Non-performing loans to total loans 0.43 % 0.51 % 0.42 % 0.45 % 0.44 % Non-performing assets to total assets 0.28 % 0.33 % 0.27 % 0.27 % 0.25 % (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 June 30, 2023 March 31, 2023 (Dollars in thousands) Average
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
RateASSETS Earning assets Interest-bearing balances due from banks $ 320,039 $ 3,729 4.67 % $ 426,051 $ 4,685 4.46 % Federal funds sold 5,350 68 5.10 % 474 6 5.13 % Investment securities - taxable 3,718,320 34,751 3.75 % 3,867,737 35,288 3.70 % Investment securities - non-taxable - FTE 1,280,781 9,332 2.92 % 1,289,564 9,482 2.98 % Loans receivable - FTE 14,259,647 243,246 6.84 % 14,474,072 237,106 6.64 % Total interest-earning assets 19,584,137 291,126 5.96 % 20,057,898 286,567 5.79 % Non-earning assets 2,643,267 2,637,957 Total assets $ 22,227,404 $ 22,695,855 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest-bearing liabilities Savings and interest-bearing transaction accounts $ 11,242,988 $ 62,637 2.23 % $ 11,579,329 $ 54,857 1.92 % Time deposits 1,174,925 7,510 2.56 % 1,072,094 4,305 1.63 % Total interest-bearing deposits 12,417,913 70,147 2.27 % 12,651,423 59,162 1.90 % Federal funds purchased 123 2 6.52 % — — — % Securities sold under agreement to repurchase 143,969 1,121 3.12 % 134,934 868 2.61 % FHLB borrowed funds 679,445 6,596 3.89 % 651,111 6,190 3.86 % Subordinated debentures 440,201 4,123 3.76 % 440,346 4,124 3.80 % Total interest-bearing liabilities 13,681,651 81,989 2.40 % 13,877,814 70,344 2.06 % Non-interest bearing liabilities Non-interest bearing deposits 4,717,623 5,043,219 Other liabilities 197,936 205,230 Total liabilities 18,597,210 19,126,263 Shareholders' equity 3,630,194 3,569,592 Total liabilities and shareholders' equity $ 22,227,404 $ 22,695,855 Net interest spread 3.56 % 3.73 % Net interest income and margin - FTE $ 209,137 4.28 % $ 216,223 4.37 % Home BancShares, Inc. Consolidated Net Interest Margin (Unaudited) Six Months Ended June 30, 2023 June 30, 2022 (Dollars in thousands) Average
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
RateASSETS Earning assets Interest-bearing balances due from banks $ 372,752 $ 8,414 4.55 % $ 3,374,606 $ 8,238 0.49 % Federal funds sold 2,926 74 5.10 % 1,805 4 0.45 % Investment securities - taxable 3,791,872 70,039 3.72 % 3,155,481 30,021 1.92 % Investment securities - non-taxable - FTE 1,285,148 18,814 2.95 % 1,061,822 16,339 3.10 % Loans receivable - FTE 14,366,267 480,352 6.74 % 11,899,115 311,523 5.28 % Total interest-earning assets 19,818,965 577,693 5.88 % 19,492,829 366,125 3.79 % Non-earning assets 2,641,370 2,115,558 Total assets $ 22,460,335 $ 21,608,387 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest-bearing liabilities Savings and interest-bearing transaction accounts $ 11,410,230 $ 117,493 2.08 % $ 11,007,232 $ 13,643 0.25 % Time deposits 1,123,793 11,816 2.12 % 1,013,600 1,980 0.39 % Total interest-bearing deposits 12,534,023 129,309 2.08 % 12,020,832 15,623 0.26 % Federal funds purchased 62 2 6.51 % 437 2 0.92 % Securities sold under agreement to repurchase 139,477 1,989 2.88 % 130,248 295 0.46 % FHLB borrowed funds 665,356 12,786 3.88 % 400,000 3,771 1.90 % Subordinated debentures 440,273 8,247 3.78 % 589,917 12,319 4.21 % Total interest-bearing liabilities 13,779,191 152,333 2.23 % 13,141,434 32,010 0.49 % Non-interest bearing liabilities Non-interest bearing deposits 4,879,521 5,152,673 Other liabilities 201,562 142,080 Total liabilities 18,860,274 18,436,187 Shareholders' equity 3,600,061 3,172,200 Total liabilities and shareholders' equity $ 22,460,335 $ 21,608,387 Net interest spread 3.65 % 3.30 % Net interest income and margin - FTE $ 425,360 4.33 % $ 334,115 3.46 %
Home BancShares, Inc. Non-GAAP Reconciliations (Unaudited) Quarter Ended Six Months Ended (Dollars and shares in thousands, except per share data) Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022 Sep. 30, 2022 Jun. 30, 2022 Jun. 30, 2023 Jun. 30, 2022 EARNINGS, AS ADJUSTED GAAP net income available to common shareholders (A) $ 105,271 $ 102,962 $ 115,687 $ 108,705 $ 15,978 $ 208,233 $ 80,870 Pre-tax adjustments BOLI death benefits (2,779 ) — — — — (2,779 ) — Merger and acquisition expenses — — — — 48,731 — 49,594 Initial provision for credit losses - acquisition — — — — 58,585 — 58,585 Fair value adjustment for marketable securities (783 ) 11,408 (1,032 ) 2,628 1,801 10,625 (324 ) Special dividend from equity investment — — — — (1,434 ) — (1,434 ) TRUPS redemption fees — — — — 2,081 — 2,081 Special lawsuit settlement, net of expense — — (10,000 ) — — — — Recoveries on historic losses — (3,461 ) — (1,065 ) (2,353 ) (3,461 ) (5,641 ) Hurricane expense — — 176 — — — — Total pre-tax adjustments (3,562 ) 7,947 (10,856 ) 1,563 107,411 4,385 102,861 Tax-effect of adjustments (879 ) 1,961 (2,679 ) 393 26,396 1,082 25,176 Total adjustments after-tax (B) (2,683 ) 5,986 (8,177 ) 1,170 81,015 3,303 77,685 Earnings, as adjusted (C) $ 102,588 $ 108,948 $ 107,510 $ 109,875 $ 96,993 $ 211,536 $ 158,555 Average diluted shares outstanding (D) 202,923 203,625 204,179 205,135 206,015 203,274 185,223 GAAP diluted earnings per share: (A/D) $ 0.52 $ 0.51 $ 0.57 $ 0.53 $ 0.08 $ 1.02 $ 0.44 Adjustments after-tax: (B/D) (0.01 ) 0.03 (0.04 ) 0.01 0.39 0.02 0.42 Diluted earnings per common share, as adjusted: (C/D) $ 0.51 $ 0.54 $ 0.53 $ 0.54 $ 0.47 $ 1.04 $ 0.86 ANNUALIZED RETURN ON AVERAGE ASSETS Return on average assets: (A/E) 1.90 % 1.84 % 1.98 % 1.81 % 0.26 % 1.87 % 0.75 % Return on average assets, as adjusted: (ROA, as adjusted) ((A+D)/E) 1.85 % 1.95 % 1.84 % 1.83 % 1.57 % 1.90 % 1.48 % Return on average assets excluding intangible amortization: ((A+C)/(E-F)) 2.07 % 2.00 % 2.15 % 1.97 % 0.31 % 2.03 % 0.83 % Return on average assets, as adjusted, excluding intangible amortization: ((A+C+D)/(E-F)) 2.02 % 2.12 % 2.00 % 1.99 % 1.70 % 2.07 % 1.60 % GAAP net income available to common shareholders (A) $ 105,271 $ 102,962 $ 115,687 $ 108,705 $ 15,978 $ 208,233 $ 80,870 Amortization of intangibles (B) 2,478 2,477 2,478 2,477 2,477 4,955 3,898 Amortization of intangibles after-tax (C) 1,866 1,866 1,866 1,854 1,854 3,732 2,903 Adjustments after-tax (D) (2,683 ) 5,986 (8,177 ) 1,170 81,015 3,303 77,685 Average assets (E) 22,227,404 22,695,855 23,187,005 23,778,769 24,788,365 22,460,335 21,608,387 Average goodwill & core deposit intangible (F) 1,452,951 1,455,423 1,454,639 1,459,034 1,423,466 1,454,180 1,211,580 Home BancShares, Inc. Non-GAAP Reconciliations (Unaudited) Quarter Ended Six Months Ended (Dollars in thousands) Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022 Sep. 30, 2022 Jun. 30, 2022 Jun. 30, 2023 Jun. 30, 2022 ANNUALIZED RETURN ON AVERAGE COMMON EQUITY Return on average common equity: (A/D) 11.63 % 11.70 % 13.29 % 12.25 % 1.78 % 11.66 % 5.14 % Return on average common equity, as adjusted: (ROE, as adjusted) ((A+C)/D) 11.33 % 12.38 % 12.35 % 12.39 % 10.83 % 11.85 % 10.08 % Return on average tangible common equity: (A/(D-E)) 19.39 % 19.75 % 22.96 % 20.93 % 2.96 % 19.57 % 8.32 % Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) ((A+C)/(D-E)) 18.90 % 20.90 % 21.33 % 21.16 % 17.94 % 19.88 % 16.31 % Return on average tangible common equity excluding intangible amortization: (B/(D-E)) 19.74 % 20.11 % 23.33 % 21.29 % 3.30 % 19.92 % 8.62 % Return on average tangible common equity, as adjusted, excluding intangible amortization: ((B+C)/(D-E)) 19.24 % 21.26 % 21.70 % 21.52 % 18.29 % 20.23 % 16.61 % GAAP net income available to common shareholders (A) $ 105,271 $ 102,962 $ 115,687 $ 108,705 $ 15,978 $ 208,233 $ 80,870 Earnings excluding intangible amortization (B) 107,137 104,828 117,553 110,559 17,832 211,965 83,773 Adjustments after-tax (C) (2,683 ) 5,986 (8,177 ) 1,170 81,015 3,303 77,685 Average common equity (D) 3,630,194 3,569,592 3,454,005 3,519,296 3,591,758 3,600,061 3,172,200 Average goodwill & core deposits intangible (E) 1,452,951 1,455,423 1,454,639 1,459,034 1,423,466 1,454,180 1,211,580 EFFICIENCY RATIO & P5NR Efficiency ratio: ((D-H)/(B+C+E)) 44.00 % 44.80 % 42.44 % 43.24 % 66.31 % 44.39 % 58.26 % Efficiency ratio, as adjusted: ((D-H-J)/(B+C+E-I)) 44.83 % 43.42 % 43.07 % 42.97 % 46.02 % 44.12 % 46.53 % Pre-tax net income to total revenue (net) (A/(B+C)) 53.23 % 53.43 % 54.50 % 55.39 % 7.92 % 53.33 % 25.72 % Pre-tax net income, as adjusted, to total revenue (net) ((A+F)/(B+C)) 51.85 % 56.63 % 50.52 % 56.00 % 52.06 % 54.20 % 51.10 % Pre-tax, pre-provision, net income (PPNR) (B+C-D) $ 140,870 $ 134,115 $ 153,423 $ 141,959 $ 77,857 $ 274,985 $ 162,778 Pre-tax, pre-provision, net income, as adjusted (B+C-D+F-G) $ 137,308 $ 142,062 $ 142,567 $ 143,522 $ 126,683 $ 279,370 $ 207,054 P5NR (Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C) 54.78 % 53.91 % 56.34 % 55.39 % 32.00 % 54.35 % 40.18 % P5NR, as adjusted (B+C-D+F-G)/(B+C) 53.40 % 57.11 % 52.35 % 56.00 % 52.06 % 55.22 % 51.10 % Pre-tax net income (A) $ 136,887 $ 132,915 $ 148,423 $ 141,959 $ 19,272 $ 269,802 $ 104,193 Net interest income (B) 207,643 214,595 215,666 213,104 198,758 422,238 329,906 Non-interest income (C) 49,509 34,164 56,660 43,201 44,581 83,673 75,250 Non-interest expense (D) 116,282 114,644 118,903 114,346 165,482 230,926 242,378 Fully taxable equivalent adjustment (E) 1,494 1,628 2,017 2,437 2,471 3,122 4,209 Total pre-tax adjustments (F) (3,562 ) 7,947 (10,856 ) 1,563 107,411 4,385 102,861 Initial provision for credit losses - acquisition (G) — — — — 58,585 — 58,585 Amortization of intangibles (H) 2,478 2,477 2,478 2,477 2,477 4,955 3,898 Adjustments: Non-interest income: Fair value adjustment for marketable securities $ 783 $ (11,408 ) $ 1,032 $ (2,628 ) $ (1,801 ) $ (10,625 ) $ 324 Gain on OREO 319 — 13 — 9 319 487 Gain (loss) on branches, equipment and other assets, net 917 7 10 (13 ) 2 924 18 Special dividend from equity investment — — — — 1,434 — 1,434 BOLI death benefits 2,779 — — — — 2,779 — Lawsuit settlement - special lawsuit — — 15,000 — — — — Recoveries on historic losses — 3,461 — 1,065 2,353 3,461 5,641 Total non-interest income adjustments (I) $ 4,798 $ (7,940 ) $ 16,055 $ (1,576 ) $ 1,997 $ (3,142 ) $ 7,904 Non-interest expense: Merger and acquisition expenses — — — — 48,731 — 49,594 Hurricane expense — — 176 — — — — Legal expense - special lawsuit — — 5,000 — — — — TRUPS redemption fees — — — — 2,081 — 2,081 Total non-interest expense adjustments (J) $ — $ — $ 5,176 $ — $ 50,812 $ — $ 51,675 Home BancShares, Inc. Non-GAAP Reconciliations (Unaudited) Quarter Ended Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022 Sep. 30, 2022 Jun. 30, 2022 TANGIBLE BOOK VALUE PER COMMON SHARE Book value per common share: (A/B) $ 18.04 $ 17.87 $ 17.33 $ 16.94 $ 17.04 Tangible book value per common share: ((A-C-D)/B) 10.87 10.71 10.17 9.82 9.92 Total stockholders' equity (A) $ 3,654,084 $ 3,630,885 $ 3,526,362 $ 3,460,015 $ 3,498,565 End of period common shares outstanding (B) 202,573 203,168 203,434 204,219 205,291 Goodwill (C) 1,398,253 1,398,253 1,398,253 1,394,353 1,398,400 Core deposit and other intangibles (D) 53,500 55,978 58,455 60,932 63,410 TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS Equity to assets: (B/A) 16.51 % 16.12 % 15.41 % 14.94 % 14.43 % Tangible common equity to tangible assets: ((B-C-D)/(A-C-D)) 10.65 % 10.33 % 9.66 % 9.24 % 8.94 % Total assets (A) $ 22,126,429 $ 22,518,255 $ 22,883,588 $ 23,157,370 $ 24,253,168 Total stockholders' equity (B) 3,654,084 3,630,885 3,526,362 3,460,015 3,498,565 Goodwill (C) 1,398,253 1,398,253 1,398,253 1,394,353 1,398,400 Core deposit and other intangibles (D) 53,500 55,978 58,455 60,932 63,410