CONWAY, Ark., July 17, 2024 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NYSE:HOMB) ("Home" or the "Company"), parent company of Centennial Bank, released quarterly earnings today. Quarterly Highlights Metric Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Net income $101.5 million $100.1 million $86.2 million $98.5 million $105.3 million Net income, as adjusted (non-GAAP)(1) $103.9 million $99.2 million $92.2 million $94.7 million $102.6 million Total revenue (net) $254.6 million $246.4 million $245.6 million $245.4 million $257.2 million Income before income taxes $133.4 million $130.4 million $112.8 million $129.3 million $136.9 million Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) $141.4 million $134.9 million $118.4 million $130.6 million $140.9 million PPNR, as adjusted (non-GAAP)(1) $141.9 million $133.7 million $126.4 million $125.7 million $137.3 million Pre-tax net income to total revenue (net) 52.40% 52.92% 45.92% 52.70% 53.23% Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1) 52.59% 52.45% 49.16% 50.72% 51.85% P5NR(Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) 55.54% 54.75% 48.22% 53.23% 54.78% P5NR, as adjusted (non-GAAP)(1) 55.73% 54.28% 51.46% 51.25% 53.40% ROA 1.79% 1.78% 1.55% 1.78% 1.90% ROA, as adjusted (non-GAAP)(1) 1.83% 1.76% 1.66% 1.72% 1.85% NIM 4.27% 4.13% 4.17% 4.19% 4.28% Purchase accounting accretion $1.9 million $2.8 million $2.3 million $2.4 million $2.7 million ROE 10.73% 10.64% 9.36% 10.65% 11.63% ROE, as adjusted (non-GAAP)(1) 10.98% 10.54% 10.00% 10.25% 11.33% ROTCE (non-GAAP)(1) 17.29% 17.22% 15.49% 17.62% 19.39% ROTCE, as adjusted (non-GAAP)(1) 17.69% 17.07% 16.56% 16.95% 18.90% Diluted earnings per share $0.51 $0.50 $0.43 $0.49 $0.52 Diluted earnings per share, as adjusted(non-GAAP)(1) $0.52 $0.49 $0.46 $0.47 $0.51 Non-performing assets to total assets 0.56% 0.48% 0.42% 0.42% 0.28% Common equity tier 1 capital 14.4% 14.3% 14.2% 14.0% 13.6% Leverage 12.3% 12.3% 12.4% 12.4% 11.9% Tier 1 capital 14.4% 14.3% 14.2% 14.0% 13.6% Total risk-based capital 18.0% 17.9% 17.8% 17.6% 17.3% Allowance for credit losses to total loans 2.00% 2.00% 2.00% 2.00% 2.01% Book value per share $19.30 $18.98 $18.81 $18.06 $18.04 Tangible book value per share (non-GAAP)(1) 12.08 11.79 11.63 10.90 10.87    (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release. "Revenue is up and expenses are down. In the second quarter, HOMB saw profitable loan growth and a lower efficiency ratio, while overcoming the additional $2.3 million of FDIC special assessment. We hit record highs for book value per common share of $19.30 and tangible book value per common share of $12.08. It was a great quarter with adjusted earnings, quarter over quarter, exceeding a great year in 2023," said John Allison, Chairman. Liquidity and Funding Sources At June 30, 2024, the Company held $2.67 billion in net available internal liquidity. This balance consisted of $1.63 billion in unpledged investment securities which could be used for additional secured borrowing capacity, $797.3 million in cash with the Federal Reserve Bank (FRB) and $247.8 million in other liquid cash accounts. Consistent with the Company's practice of maintaining access to significant external liquidity, the Company had $3.15 billion in net available external liquidity as of June 30, 2024. This included $4.81 billion in available liquidity with the Federal Home Loan Bank (FHLB), of which $1.86 billion has been drawn upon in the ordinary course of business, resulting in $2.95 billion in net available liquidity with the FHLB as of June 30, 2024. The $1.86 billion consisted of $600.0 million in outstanding FHLB advances and $1.26 billion used for pledging purposes. The Company also had access to approximately $797.3 million in liquidity with the FRB as of June 30, 2024, of which $700.0 million has been drawn upon in the ordinary course of business from the Bank Term Funding Program (BTFP), resulting in $97.3 million in net available liquidity with the FRB as of June 30, 2024. As of June 30, 2024, 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 $5.82 billion in net available liquidity as of June 30, 2024, which consisted of $2.67 billion of net available internal liquidity and $3.15 billion in net available external liquidity. Details on the Company's available liquidity as of June 30, 2024 are available below. (In thousands)   Total Available   Amount Used   Net Availability Internal Sources             Unpledged investment securities (market value)   $ 1,627,007   $ —   $ 1,627,007 Cash at FRB     797,300     —     797,300 Other liquid cash accounts     247,813     —     247,813 Total Internal Liquidity     2,672,120     —     2,672,120 External Sources             FHLB     4,808,671     1,859,049     2,949,622 FRB Discount Window     97,296     —     97,296 BTFP (par value)     700,000     700,000     — FNBB     55,000     —     55,000 Other     45,000     —     45,000 Total External Liquidity     5,705,967     2,559,049     3,146,918 Total Available Liquidity   $ 8,378,087   $ 2,559,049   $ 5,819,038 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, 2024, the Company held approximately $8.33 billion in uninsured deposits of which $744.9 million were intercompany subsidiary deposit balances and $2.90 billion were collateralized deposits, for a net position of $4.69 billion. This represents approximately 27.6% of total deposits. As of June 30, 2024, net available liquidity exceeded uninsured and uncollateralized deposits by $1.13 billion. (in thousands)   As ofJune 30, 2024 Uninsured Deposits   $ 8,327,937 Intercompany Subsidiary and Affiliate Balances     744,882 Collateralized Deposits     2,896,015 Net Uninsured Position   $ 4,687,040       Total Available Liquidity   $ 5,819,038 Net Uninsured Position     4,687,040 Net Available Liquidity in Excess of Uninsured Deposits   $ 1,131,998 In the event the Company's $4.69 billion net position of uninsured deposits had been called by depositors on the first day of the second quarter of 2024 and the Company utilized available funding, which remained outstanding during the entire quarter, the Company estimates that interest expense would have increased by approximately $74.2 million for the quarter ended June 30, 2024. The outflow of deposits could have been funded through available sources of liquidity without selling our investment securities. In this event, based on the Company's profitability level for the quarter ended June 30, 2024, the Company estimates that it would still have achieved return on average assets (ROA) of 1.30% for the quarter ended June 30, 2024. Operating Highlights Net income for the three-month period ended June 30, 2024 was $101.5 million, or $0.51 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 $103.9 million(1) and $0.52 per share(1), respectively, for the three months ended June 30, 2024. Our net interest margin was 4.27% for the three-month period ended June 30, 2024, compared to 4.13% for the three-month period ended March 31, 2024. The yield on loans was 7.54% and 7.37% for the three months ended June 30, 2024 and March 31, 2024, respectively, as average loans increased from $14.49 billion to $14.65 billion. Additionally, the rate on interest bearing deposits increased to 3.00% as of June 30, 2024, from 2.93% as of March 31, 2024, while average interest-bearing deposits increased from $12.72 billion to $12.85 billion. During the second quarter of 2024, there was $1.7 million of event interest income compared to $1.1 million of event interest expense for the first quarter of 2024. Purchase accounting accretion on acquired loans was $1.9 million and $2.8 million and average purchase accounting loan discounts were $22.8 million and $24.8 million for the three-month periods ended June 30, 2024 and March 31, 2024, respectively. Net interest income on a fully taxable equivalent basis was $214.5 million for the three-month period ended June 30, 2024, and $205.5 million for the three-month period ended March 31, 2024. This increase in net interest income for the three-month period ended June 30, 2024, was the result of a $12.1 million increase in interest income, partially offset by an $3.2 million increase in interest expense. The $12.1 million increase in interest income was primarily the result of a $9.1 million increase in loan interest income, a $2.0 million increase in income from interest-bearing balances due from banks and a $970,000 million increase in investment income. The increase in interest income is primarily the result the growth in interest-earning assets and the current high interest rate environment. The $3.2 million increase in interest expense was due to a $3.2 million increase in interest expense on deposits. The increase in interest expense is also a result of the growth of interest-bearing deposits and the current high interest rate environment. The Company reported $42.8 million of non-interest income for the second quarter of 2024. The most important components of second quarter non-interest income were $10.7 million from other service charges and fees, $9.7 million from service charges on deposit accounts, $6.7 million from other income, $4.7 million from trust fees, $4.3 million in mortgage lending income, $3.0 million from dividends from FHLB, FRB, FNBB and other, $2.1 million gain on branches, equipment and other assets and $1.3 million from the increase in cash value of life insurance. The $2.1 million gain on branches, equipment and other assets is from the sale of a building in our Texas region. Non-interest expense for the second quarter of 2024 was $113.2 million. The most important components of non-interest expense were $60.4 million from salaries and employee benefits, $29.4 million in other operating expense, $14.4 million in occupancy and equipment expenses and $8.9 million in data processing expenses. Included within other operating expenses was $2.3 million in FDIC special assessment expense. This is the remaining portion of the assessment 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 second quarter of 2024, our efficiency ratio was 43.17%, and our efficiency ratio, as adjusted (non-GAAP), was 42.59%(1). Financial Condition Total loans receivable were $14.78 billion at June 30, 2024, compared to $14.51 billion at March 31, 2024. Total deposits were $16.96 billion at June 30, 2024, compared to $16.87 billion at March 31, 2024. Total assets were $22.92 billion at June 30, 2024, compared to $22.84 billion at March 31, 2024. During the second quarter of 2024, the Company experienced approximately $267.8 million in loan growth. Centennial CFG experienced $56.4 million of organic loan growth and had loans of $2.09 billion at June 30, 2024. Our remaining markets experienced $211.4 million in organic loan growth during the quarter. Non-performing loans to total loans were 0.58% and 0.55% at June 30, 2024 and March 31, 2024, respectively. Non-performing assets to total assets were 0.56% and 0.48% at June 30, 2024 and March 31, 2024, respectively. Net charge-offs were $2.4 million and $3.4 million for the three months ended June 30, 2024 and March 31, 2024, respectively. Non-performing loans at June 30, 2024 were $16.2 million, $39.1 million, $24.7 million, $399,000, $3.1 million and $2.8 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $86.3 million. Non-performing assets at June 30, 2024 were $16.3 million, $46.6 million, $35.8 million, $399,000, $3.1 million and $25.6 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $127.8 million. The Company's allowance for credit losses on loans was $295.9 million at June 30, 2024, or 2.00% of total loans, compared to the allowance for credit losses on loans of $290.3 million, or 2.00% of total loans, at March 31, 2024. As of June 30, 2024 and March 31, 2024, the Company's allowance for credit losses on loans was 342.66% and 362.94% of its total non-performing loans, respectively. Stockholders' equity was $3.86 billion at June 30, 2024, compared to $3.81 billion at March 31, 2024, an increase of approximately $44.1 million. The increase in stockholders' equity is primarily associated with the $65.4 million increase in retained earnings and $9.6 million reduction in accumulated other comprehensive income, partially offset by the $32.6 million in stock repurchases. Book value per common share was $19.30 at June 30, 2024, compared to $18.98 at March 31, 2024. Tangible book value per common share (non-GAAP) was $12.08(1) at June 30, 2024, compared to $11.79(1) at March 31, 2024. Branches The Company currently has 76 branches in Arkansas, 78 branches in Florida, 58 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 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/329781550. 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=c8dcd669&confId=67018. 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: 667067. A replay of the call will be available by calling 1-866-813-9403, Passcode: 180861, which will be available until July 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; 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; disruptions, uncertainties and related effects on credit quality, liquidity and other aspects of our business and operations that may result from any future public health crises; 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, 2023, filed with the SEC on February 26, 2024. FOR MORE INFORMATION CONTACT:Donna TownsellDirector of Investor RelationsHome BancShares, Inc.(501) 328-4625   Home BancShares, Inc. Consolidated End of Period Balance Sheets (Unaudited)                       (In thousands)   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sep. 30, 2023   Jun. 30, 2023 ASSETS                                           Cash and due from banks   $ 229,209     $ 205,262     $ 226,363     $ 229,474     $ 275,656   Interest-bearing deposits with other banks     829,507     969,996       773,850       258,605       335,535   Cash and cash equivalents     1,058,716     1,175,258       1,000,213       488,079       611,191   Federal funds sold     —     5,200       5,100       3,925       1,550   Investment securities - available-for-sale, net of allowance for credit losses     3,344,539     3,400,884       3,507,841       3,472,173       3,645,013   Investment securities - held-to-maturity, net of allowance for credit losses     1,278,853     1,280,586       1,281,982       1,283,475       1,285,150   Total investment securities     4,623,392     4,681,470       4,789,823       4,755,648       4,930,163   Loans receivable     14,781,457     14,513,673       14,424,728       14,271,833       14,180,972   Allowance for credit losses     (295,856 )   (290,294 )     (288,234 )     (285,562 )     (285,683 ) Loans receivable, net     14,485,601     14,223,379       14,136,494       13,986,271       13,895,289   Bank premises and equipment, net     383,691     389,618       393,300       397,093       397,315   Foreclosed assets held for sale     41,347     30,650       30,486       691       725   Cash value of life insurance     218,198     215,424       214,516       213,351       213,090   Accrued interest receivable     120,984     119,029       118,966       110,946       101,066   Deferred tax asset, net     195,041     202,882       197,164       222,741       206,430   Goodwill     1,398,253     1,398,253       1,398,253       1,398,253       1,398,253   Core deposit intangible     44,490     46,630       48,770       51,023       53,500   Other assets     350,192     347,928       323,573       322,617       317,857   Total assets   $ 22,919,905     $ 22,835,721     $ 22,656,658     $ 21,950,638     $ 22,126,429                         LIABILITIES AND STOCKHOLDERS' EQUITY                                           Liabilities                     Deposits:                     Demand and non-interest-bearing   $ 4,068,302     $ 4,115,603     $ 4,085,501     $ 4,280,429     $ 4,598,593   Savings and interest-bearing transaction accounts     11,150,516     11,047,258       11,050,347       10,786,087       11,169,940   Time deposits     1,736,985     1,703,269       1,651,863       1,452,229       1,228,358   Total deposits     16,955,803     16,866,130       16,787,711       16,518,745       16,996,891   Securities sold under agreements to repurchase     137,996     176,107       142,085       160,120       160,349   FHLB and other borrowed funds     1,301,050     1,301,050       1,301,300       1,001,550       701,550   Accrued interest payable and other liabilities     230,011     241,345       194,653       175,367       173,426   Subordinated debentures     439,542     439,688       439,834       439,982       440,129   Total liabilities     19,064,402     19,024,320       18,865,583       18,295,764       18,472,345                         Stockholders' equity                     Common stock     1,997     2,008       2,015       2,023       2,026   Capital surplus     2,295,893     2,326,824       2,348,023       2,363,210       2,366,560   Retained earnings     1,819,412     1,753,994       1,690,112       1,640,171       1,578,176   Accumulated other comprehensive loss     (261,799 )   (271,425 )     (249,075 )     (350,530 )     (292,678 ) Total stockholders' equity     3,855,503     3,811,401       3,791,075       3,654,874       3,654,084   Total liabilities and stockholders' equity   $ 22,919,905     $ 22,835,721     $ 22,656,658     $ 21,950,638     $ 22,126,429   Home BancShares, Inc. Consolidated Statements of Income (Unaudited)                                   Quarter Ended   Six Months Ended (In thousands)   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sep. 30, 2023   Jun. 30, 2023   Jun. 30, 2024   Jun. 30, 2023 Interest income:                             Loans   $ 274,324     $ 265,294     $ 260,003     $ 249,464     $ 243,152     $ 539,618     $ 480,149   Investment securities                             Taxable     32,587       33,229       34,016       34,520       34,751       65,816       70,039   Tax-exempt     7,769       7,803       7,855       7,868       7,932       15,572       15,895   Deposits - other banks     12,564       10,528       4,281       2,328       3,729       23,092       8,414   Federal funds sold     59       61       65       82       68       120       74   Total interest income     327,303       316,915       306,220       294,262       289,632       644,218       574,571   Interest expense:                             Interest on deposits     95,741       92,548       87,971       78,698       70,147       188,289       129,309   Federal funds purchased     —       —       —       1       2       —       2   FHLB and other borrowed funds     14,255       14,276       9,878       8,161       6,596       28,531       12,786   Securities sold under agreements to repurchase     1,363       1,404       1,480       1,344       1,121       2,767       1,989   Subordinated debentures     4,122       4,097       4,121       4,121       4,123       8,219       8,247   Total interest expense     115,481       112,325       103,450       92,325       81,989       227,806       152,333   Net interest income     211,822       204,590       202,770       201,937       207,643       416,412       422,238   Provision for credit losses on loans     8,000       5,500       5,650       2,800       2,300       13,500       3,500   Recovery of credit losses on unfunded commitments     —       (1,000 )     —       (1,500 )     —       (1,000 )     —   Provision for credit losses on investment securities     —       —       —       —       1,683       —       1,683   Total credit loss expense     8,000       4,500       5,650       1,300       3,983       12,500       5,183   Net interest income after credit loss expense     203,822       200,090       197,120       200,637       203,660       403,912       417,055   Non-interest income:                             Service charges on deposit accounts     9,714       9,686       10,072       10,062       9,231       19,400       19,073   Other service charges and fees     10,679       10,189       10,422       10,128       11,763       20,868       23,638   Trust fees     4,722       5,066       4,316       4,660       4,052       9,788       8,916   Mortgage lending income     4,276       3,558       2,385       3,132       2,650       7,834       5,221   Insurance commissions     565       508       480       562       518       1,073       1,044   Increase in cash value of life insurance     1,279       1,195       1,170       1,170       1,211       2,474       2,315   Dividends from FHLB, FRB, FNBB & other     2,998       3,007       3,010       2,916       2,922       6,005       5,716   Gain on SBA loans     56       198       42       97       —       254       139   Gain (loss) on branches, equipment and other assets, net     2,052       (8 )     583       —       917       2,044       924   Gain on OREO, net     49       17       13       —       319       66       319   Fair value adjustment for marketable securities     (274 )     1,003       5,024       4,507       783       729       (10,625 ) Other income     6,658