Home Bancshares (Conway, AR) (HOMB) investor relations material

Executive summary

• Record Q3 net income was $129.5 million, or $0.65 per diluted share; adjusted net income was $129.1 million, or $0.65 per share, up 7.9% YoY.

• Nine-month net income was $367.0 million; adjusted nine-month earnings of $380 million support the $500 million earnings goal.

• Profitability, margin expansion, disciplined balance-sheet management and shareholder returns defined the quarter.

Financial highlights

• Net interest income after credit loss expense was $242.0 million, versus $236.4 million QoQ and $222.7 million YoY.

• PPNR was $166.9 million; adjusted PPNR was $166.6 million, versus $171.2 million QoQ and $157.7 million YoY.

• Net revenue was $288.4 million, non-interest income $46.4 million and non-interest expense $121.5 million, including $12.7 million in merger and acquisition expenses.

• Fully taxable equivalent net interest income was $244.5 million, essentially unchanged QoQ; a $2.3 million decline in interest expense was mostly offset by a $2.1 million decline in interest income.

• Q3 borrowing expenses declined $2.3 million, including $1.2 million lower deposit interest expense and $1.1 million lower borrowing interest expense.

Segment performance

• Total loans declined $216.6 million QoQ to $16.91 billion; total deposits fell to $18.76 billion from $19.11 billion.

• Centennial Bank Q3 loan production was $850 million, including nearly $70 million from Tennessee; unfunded commitment pipeline exceeded $3.8 billion.

• CCFG origination activity was subdued in Q3, with its pipeline rebuilding in early Q4; Mountain Commerce systems conversion was scheduled for November 6.