Home / Top News / HOMB’s Second Quarter of 2020 is BEST in 20 Year History: Beats on Margin, EPS and PPNR; Dividend Remains Solid

HOMB’s Second Quarter of 2020 is BEST in 20 Year History: Beats on Margin, EPS and PPNR; Dividend Remains Solid

CONWAY, Ark., July 16, 2020 (GLOBE NEWSWIRE) — Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, released second quarter earnings today, that reveal a solid foundation of earnings and asset quality during the first full quarter of the pandemic.

Highlights of the Second Quarter of 2020:

Metric Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019
Net Income $62.8 million $507,000 $73.3 million $72.8 million $72.2 million
Total Revenue (net) $173.7 million $162.7 million $167.8 million $167.7 million $164.1 million
Income (loss) before income taxes $82.1 million ($2.4 million) $96.5 million $100.0 million $95.1 million
Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (PPNR) (non-GAAP)(1) $102.7 million $92.2 million $96.5 million $100.0 million $96.4 million
ROA 1.55% 0.01% 1.94% 1.93% 1.92%
ROA (pre-tax net income, excluding provision for credit losses and unfunded commitment expense) (non-GAAP)(1) 2.53% 2.45% 2.56% 2.65% 2.56%
ROA, excluding provision for credit losses and unfunded commitment expense
(non-GAAP) (1)
1.92% 1.87% 1.94% 1.93% 1.94%
NIM 4.11% 4.22% 4.24% 4.32% 4.28%
NIM, excluding PPP loans (non-GAAP) (1) 4.16% 4.22% 4.24% 4.32% 4.28%
Purchase Accounting Accretion $7.0 million $7.6 million $9.1 million $8.5 million $9.2 million
ROE 10.27% 0.08% 11.71% 11.84% 12.18%
ROTCE (non-GAAP)(1) 17.40% 0.14% 19.55% 20.04% 21.01%
Diluted Earnings Per Share $0.38 $0.00 $0.44 $0.44 $0.43
Non-Performing Assets to Total Assets 0.39% 0.44% 0.43% 0.45% 0.51%
Common Equity Tier 1 Capital 12.0% 11.5% 12.4% 12.2% 11.6%
Leverage 10.3% 10.8% 11.3% 10.9% 10.5%
Tier 1 Capital 12.6% 12.1% 13.0% 12.8% 12.2%
Total Risk-Based Capital 16.2% 15.7% 16.4% 16.2% 15.5%
Allowance for Credit Losses to Total Loans 1.99% 2.01% 0.94% 0.97% 0.96%
Allowance for Credit Losses to Total Loans, excluding PPP loans (non-GAAP) (1) 2.15% 2.01% 0.94% 0.97% 0.96%

(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.

“To say that during a full quarter of a pandemic that HOMB was able to meet EPS targets, set a record for revenue and maintain a solid net interest margin brings about an enormous sense of pride that I have in this team of bankers,” said John Allison, Chairman. “Our outlook for future dividends remains strong, which is also an important component to our solid performance,” Allison continued.

“While we realize this is a marathon and not a sprint, to have best in class asset quality and loan reserves, excluding PPP loans, of 2.15% brings about a strong sense of comfort,” said Tracy French, Centennial Bank President and Chief Executive Officer.

Operating Highlights

During the second quarter of 2020, we recorded $11.4 million of total credit loss expense which was primarily due to the COVID-19 pandemic. Our CECL provisioning model is significantly tied to projected unemployment rates which have remained elevated during the second quarter of 2020.

Our net interest margin was 4.11% for the three-month period ended June 30, 2020 compared to 4.22% for the three-month period ended March 31, 2020. The yield on loans was 5.43% and 5.79% for the three months ended June 30, 2020 and March 31, 2020, respectively, as average loans increased from $11.01 billion to $11.79 billion. Additionally, the rate on interest bearing deposits decreased to 0.64% as of June 30, 2020 from 1.08% as of March 31, 2020, with average balances of $9.51 billion and $8.99 billion, respectively.

The Company participated in the Paycheck Protection Program (PPP) during the second quarter of 2020. As of June 30, 2020, we had $848.6 million of PPP loans. These loans are at 1.00% plus the accretion of the origination fee. Excluding PPP loans, our net interest margin (non-GAAP) for the three-month period ended June 30, 2020 was 4.16%(1). The PPP loans had a 13-basis point dilutive impact to the yield on loans. The PPP loans were dilutive to the net interest margin by 5 basis points.

The COVID-19 pandemic has created a significant amount of excess liquidity in the market. As a result of this excess liquidity, we had an increase of $416.8 million of average interest-bearing cash balances in the second quarter of 2020 compared to the first quarter of 2020. This excess liquidity diluted the net interest margin by 12 basis points.

During the second quarter of 2020, event interest income was $1.5 million compared to event interest income of $558,000 for the quarter ended March 31, 2020. The higher event income during Q2 increased the net interest margin by 3 basis points.

Purchase accounting accretion on acquired loans was $7.0 million and $7.6 million and average purchase accounting loan discounts were $62.8 million and $69.4 million for the three-month periods ended June 30, 2020 and March 31, 2020, respectively. Net amortization of time deposit premiums was $30,000 per quarter and net average remaining time deposit premiums were $206,000 and $236,000 for the three-month periods ended June 30, 2020 and March 31, 2020, respectively. The $600,000 reduction in accretion income decreased the net interest margin by 2 basis points for the second quarter of 2020.

The net interest margin experienced 16 basis points of noise for the three-months ended June 30, 2020, compared to the three months ended March 31, 2020 resulting from a 5 basis point decline for PPP loans, a 12 basis point decline for excess liquidity, a 2 basis point decline for less accretion income and an offsetting 3 basis point improvement from event interest income. When adjusting for these items, our net interest margin was actually 5 basis points higher for the second quarter of 2020 compared to the first quarter of 2020.

Net interest income for the second quarter of 2020 was a record for the Company. Net interest income on a fully taxable equivalent basis increased $9.1 million, or 6.5%, to $150.1 million for the three-month period ended June 30, 2020, from $141.0 million for the three-month period ended March 31, 2020. This increase in net interest income for the three-month period ended June 30, 2020 was the result of a $9.5 million decrease in interest expense, which was partially offset by a $370,000 decrease in interest income. The $9.5 million decrease in interest expense was primarily the result of a $9.1 million decrease in interest expense on deposits. This decrease was the result of an $8.0 million decrease in interest expense on savings and interest-bearing transaction accounts and a $1.1 million decrease in interest expense on time deposits. The $370,000 decrease in interest income was primarily the result of a $905,000 decrease in income on deposits with other banks and a $283,000 net decrease in investment income which were partially offset by an $839,000 increase in loan interest income.

Non-performing loans to total loans was 0.50% as of June 30, 2020 compared to 0.53% as of March 31, 2020. Non-performing assets to total assets decreased from 0.44% as of March 31, 2020 to 0.39% as of June 30, 2020. For the second quarter of 2020, net charge-offs were $2.0 million compared to net charge-offs of $3.5 million for the first quarter of 2020.

The Company reported $25.0 million of non-interest income for the second quarter of 2020. The most important components of the second quarter non-interest income were $7.7 million from other service charges and fees, $6.2 million from mortgage lending income, $4.3 million from service charges on deposits accounts and $3.9 million from other income. Non-interest income for the second quarter of 2020 included a $919,000 adjustment for the increase in fair market value of marketable securities.

Non-interest expense for the second quarter of 2020 was $80.2 million. The most important components of the second quarter non-interest expense were $40.1 million from salaries and employee benefits, $25.3 million in other expense and $10.2 million in occupancy and equipment expenses. For the second quarter of 2020, our efficiency ratio was 44.93% compared to 46.82% for the first quarter of 2020. Non-interest expense for the second quarter of 2020 also included $9.2 million unfunded commitments expense.
____________________
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release

Financial Condition

Total loans receivable were $11.96 billion at June 30, 2020 compared to $11.38 billion at March 31, 2020. Total deposits were $13.18 billion at June 30, 2020 compared to $11.51 billion at March 31, 2020. Total assets were $16.90 billion at June 30, 2020 compared to $15.53 billion at March 31, 2020.

During the second quarter 2020, the Company experienced approximately $570.8 million in organic loan growth. Centennial CFG experienced $6.6 million of organic loan decline and had loans of $1.76 billion at June 30, 2020. Our legacy footprint experienced $577.2 million in organic loan growth during the quarter, driven by the origination of $848.6 million in PPP loans. 
Non-performing loans at June 30, 2020 were $16.3 million, $38.3 million, $499,000, $4.8 million and zero in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $59.9 million. Non-performing assets at June 30, 2020 were $18.9 million, $42.2 million, $533,000, $4.8 million and zero in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $66.4 million.

The Company’s allowance for credit losses on loans was $238.3 million at June 30, 2020, or 1.99% of total loans, compared to the allowance for loan losses of $228.9 million, or 2.01% of total loans, at March 31, 2020. The Company’s allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.15% at June 30, 2020(1). As of June 30, 2020 and March 31, 2020, the Company’s allowance for credit losses on loans and allowance for loan losses was 397.9% and 382.2% of its total non-performing loans, respectively. The increase in the allowance for credit losses at June 30, 2020 is primarily attributable to the ongoing effects of the COVID-19 pandemic.

Stockholders’ equity was $2.49 billion at June 30, 2020 compared to $2.43 billion at March 31, 2020, an increase of approximately $61.9 million. The increase in stockholders’ equity is primarily associated with the $41.4 million increase in retained earnings and the $18.0 million increase in accumulated other comprehensive income. Book value per common share was $15.09 at June 30, 2020 compared to $14.72 at March 31, 2020. Tangible book value per common share (non-GAAP) was $8.99(1) at June 30, 2020 compared to $8.61 at March 31, 2020, an increase of 17.75% on an annualized basis.   
____________________
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release

Branches

The Company currently has 77 branches in Arkansas, 78 branches in Florida, 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 ET) on Thursday, July 16, 2020. We encourage all participants to pre-register for the conference call using the following link:  http://dpregister.com/10145186. Callers who pre-register will be given dial-in instructions and a unique PIN to gain immediate access to the live call. Participants may pre-register now, or at any time prior to the call, and will immediately receive simple instructions via email. The Home BancShares conference call will also be automatically scheduled as an event in your Outlook calendar.

Those without internet access or unable to pre-register may dial in and listen to the live call by calling 1-877-508-9586 and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-344-7529, Passcode: 10145186, which will be available until July 23, 2020 at 10:59 p.m. CT (11:59 ET). Internet access to the call will be available live or in recorded version on the Company’s website at www.homebancshares.com under “Investor Relations” for 12 months.

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 net income, as adjusted; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets (pre-tax net income, excluding provision for credit losses and unfunded commitment expense); return on average assets, excluding provision for credit losses and unfunded commitment expense;  return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity, as adjusted; efficiency ratio, as adjusted; net interest margin, excluding PPP loans; yield on loans, excluding PPP loans; allowance for credit losses to total loans, excluding PPP loans; tangible book value per common share and tangible common equity to tangible assets–to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions (including the effect of the PPP loans) that management believes are not indicative of the Company’s primary business operating results. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

General

This release may contain forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors include, but are not limited to, the following:  economic conditions, credit quality, interest rates, loan demand, disruptions and uncertainties in our business and operations as a result of the ongoing coronavirus pandemic, the ability to successfully integrate new acquisitions, legislative and regulatory changes and risks associated with current and future regulations, technological changes and cybersecurity risks, competition from other financial institutions, 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, 2019, filed with the SEC on February 26, 2020, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, filed with the SEC on May 8, 2020.

Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, South Alabama and New York City. The Company’s common stock is traded through the NASDAQ Global Select Market under the symbol “HOMB.”

FOR MORE INFORMATION CONTACT:
Donna Townsell
Director of Investor Relations
Home BancShares, Inc.
(501) 328-4625

Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)
           
    Jun. 30,     Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,  
(In thousands)   2020     2020     2019     2019     2019  
                               
ASSETS          
           
Cash and due from banks $ 185,047   $ 147,200   $ 168,914   $ 171,492   $ 183,745  
Interest-bearing deposits with other banks   1,030,609     424,235     321,687     270,804     373,557  
Cash and cash equivalents   1,215,656     571,435     490,601     442,296     557,302  
Federal funds sold               1,650     1,075  
Investment securities – available-for-sale, net of allowance for credit losses   2,238,005     2,098,000     2,083,838     2,087,508     2,053,939  
Loans receivable   11,955,743     11,384,982     10,869,710     10,771,946     11,053,129  
Allowance for credit losses   (238,340 )   (228,923 )   (102,122 )   (104,304 )   (106,066 )
Loans receivable, net   11,717,403     11,156,059     10,767,588     10,667,642     10,947,063  
Bank premises and equipment, net   279,498     281,795     280,103     277,966     278,821  
Foreclosed assets held for sale   6,292     8,204     9,143     8,639     13,734  
Cash value of life insurance   102,443     103,120     102,562     102,003     149,708  
Accrued interest receivable   80,274     50,295     45,086     47,557     48,992  
Deferred tax asset, net   74,333     77,110     44,301     53,436     58,517  
Goodwill   973,025     973,025     958,408     958,408     958,408  
Core deposit and other intangibles   33,569     35,055     36,572     38,136     39,723  
Other assets   174,908     177,634     213,845     216,694     180,293  
  Total assets $ 16,895,406   $ 15,531,732   $ 15,032,047   $ 14,901,935   $ 15,287,575  
                               
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Liabilities          
Deposits:          
Demand and non-interest-bearing $ 3,413,727   $ 2,425,036   $ 2,367,091   $ 2,394,207   $ 2,575,696  
Savings and interest-bearing transaction accounts   7,970,979     7,149,644     6,933,964     6,620,616     6,774,162  
Time deposits   1,793,230     1,940,234     1,977,328     2,032,547     1,997,458  
Total deposits   13,177,936     11,514,914     11,278,383     11,047,370     11,347,316  
Federal funds purchased           5,000     50,000      
Securities sold under agreements to repurchase   162,858     126,884     143,727     157,038     142,541  
FHLB and other borrowed funds   531,432     951,436     621,439     691,443     899,447  
Accrued interest payable and other liabilities   161,095     138,479     102,410     117,332     107,695  
Subordinated debentures   369,939     369,748     369,557     369,363     369,170  
  Total liabilities   14,403,260     13,101,461     12,520,516     12,432,546     12,866,169  
                               
Stockholders’ equity                              
Common stock   1,652     1,651     1,664     1,669     1,675  
Capital surplus   1,518,631     1,516,151     1,537,091     1,542,858     1,550,999  
Retained earnings   932,856     891,498     956,555     904,980     853,964  
Accumulated other comprehensive (loss) income   39,007     20,971     16,221     19,882     14,768  
  Total stockholders’ equity   2,492,146     2,430,271     2,511,531     2,469,389     2,421,406  
  Total liabilities and stockholders’ equity $ 16,895,406   $ 15,531,732   $ 15,032,047   $ 14,901,935   $ 15,287,575  
                               

Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
                 
  Quarter Ended   Six Months Ended
    Jun. 30,     Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,       Jun. 30,     Jun. 30,  
(In thousands)   2020     2020     2019     2019     2019       2020     2019  
                                             
Interest income                                            
Loans $ 158,996   $ 158,148   $ 161,211   $ 167,470   $ 165,816     $ 317,144   $ 329,664  
Investment securities                                            
Taxable   8,693     9,776     9,707     10,343     10,650       18,469     21,356  
Tax-exempt   3,698     3,114     3,260     3,193     3,183       6,812     6,562  
Deposits – other banks   211     1,116     949     1,068     1,628       1,327     3,171  
Federal funds sold       21     5     8     10       21     21  
                                             
Total interest income   171,598     172,175     175,132     182,082     181,287       343,773     360,774  
                                             
Interest expense                                            
Interest on deposits   15,116     24,198     26,823     29,566     29,709       39,314     57,715  
Federal funds purchased       13     33     21           13      
FHLB borrowed funds   2,656     2,698     2,686     3,683     4,722       5,354     10,840  
Securities sold under agreements to repurchase   260     462     652     628     630       722     1,264  
Subordinated debentures   4,899     5,079     5,155     5,207     5,239       9,978     10,498  
                                             
Total interest expense   22,931     32,450     35,349     39,105     40,300       55,381     80,317  
                                             
Net interest income   148,667     139,725     139,783     142,977     140,987       288,392     280,457  
                                             
Provision for credit loss – loans   11,441     76,672             1,325       88,113     1,325  
Provision for credit loss – acquired loans       9,309                   9,309      
Provision for credit loss – investment securities       842                   842      
Total credit loss expense   11,441     86,823             1,325       98,264     1,325  
Net interest income after                                            
  provision for credit losses   137,226     52,902     139,783     142,977     139,662       190,128     279,132  
                                             
Non-interest income                                            
Service charges on deposit accounts   4,296     6,631     6,778     6,492     6,259       10,927     12,660  
Other service charges and fees   7,666     6,056     10,636     8,710     8,177       13,722     14,740  
Trust fees   397     438     390     382     391       835     794  
Mortgage lending income   6,196     2,621     3,801     4,610     3,457       8,817     5,892  
Insurance commissions   533     678     551     603     515       1,211     1,124  
Increase in cash value of life insurance   558     560     562     714     740       1,118     1,476  
Dividends from FHLB, FRB, FNBB & other   230     7,842     1,952     1,101     1,149       8,072     4,654  
Gain (loss) on SBA loans       341     686     291     355       341     596  
Gain (loss) on branches, equipment and other assets, net   54     82     35     12     (129 )     136     (50 )
Gain (loss) on OREO, net   235     277     159     334     58       512     264  
Gain (loss) on securities, net           (2 )                  
Fair value adjustment for marketable securities   919     (5,818 )                 (4,899 )    
Other income   3,939     3,219     2,481     1,500     2,094       7,158     4,588  
                                             
Total non-interest income   25,023     22,927     28,029     24,749     23,066       47,950     46,738  
                                             
Non-interest expense                                            
Salaries and employee benefits   40,088     39,329     38,446     39,919     37,976       79,417     75,812  
Occupancy and equipment   10,172     8,873     8,729     9,047     8,853       19,045     17,676  
Data processing expense   4,614     4,326     4,294     4,059     3,838       8,940     7,808  
Other operating expenses   25,298     25,721     19,873     14,739     16,957       51,019     35,385  
                                             
Total non-interest expense   80,172     78,249     71,342     67,764     67,624       158,421     136,681  
                                             
Income (loss) before income taxes   82,077     (2,420 )   96,470     99,962     95,104       79,657     189,189  
Income tax expense (benefit)   19,250     (2,927 )   23,208     27,199     22,940       16,323     45,675  
Net income $ 62,827   $ 507   $ 73,262   $ 72,763   $ 72,164     $ 63,334   $ 143,514  
                                             

Home BancShares, Inc.
Selected Financial Information
(Unaudited)
               
  Quarter Ended
  Six Months Ended
 
    Jun. 30,     Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,     Jun. 30,     Jun. 30,  
(Dollars and shares in thousands, except per share data)   2020     2020     2019     2019     2019     2020     2019  
                                           
PER SHARE DATA                                          
                                           
Diluted earnings per common share $ 0.38   $   $ 0.44   $ 0.44   $ 0.43   $ 0.38   $ 0.85  
Diluted earnings per common share, as adjusted, excluding branch write-off expense, unfunded commitment expense, provision for credit losses, fair value adjustment for marketable securities, outsourced special project expense, merger and acquisition expenses, special dividend from equity investment, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax (non-GAAP)(1)   0.47     0.43     0.44     0.44     0.44     0.90     0.86  
Basic earnings per common share   0.38         0.44     0.44     0.43     0.38     0.85  
Dividends per share – common   0.1300     0.1300     0.1300     0.1300     0.1300     0.2600     0.2500  
Book value per common share   15.09     14.72     15.10     14.80     14.46     15.09     14.46  
Tangible book value per common share (non-GAAP)(1)   8.99     8.61     9.12     8.83     8.50     8.99     8.50  
                                           
                                           
STOCK INFORMATION                                          
                                           
Average common shares outstanding   165,163     166,014     166,696     167,178     167,791     165,588     168,686  
Average diluted shares outstanding   165,163     166,014     166,696     167,178     167,791     165,588     168,686  
End of period common shares outstanding   165,206     165,148     166,373     166,860     167,466     165,206     167,466  
                                           
                                           
ANNUALIZED PERFORMANCE METRICS                                          
                                           
Return on average assets   1.55 %   0.01 %   1.94 %   1.93 %   1.92 %   0.81 %   1.92 %
Return on average assets excluding branch write-off expense, unfunded commitment expense, provision for credit losses, fair value adjustment for marketable securities, outsourced special project expense, merger and acquisition expenses, special dividend from equity investment, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROA, as adjusted) (non-GAAP)(1)   1.93 %   1.88 %   1.94 %   1.96 %   1.95 %   1.90 %   1.93 %
Return on average assets excluding intangible amortization (non-GAAP)(1)   1.68 %   0.05 %   2.12 %   2.10 %   2.09 %   0.90 %   2.09 %
Return on average common equity   10.27 %   0.08 %   11.71 %   11.84 %   12.18 %   5.16 %   12.26 %
Return on average common equity excluding branch write-off expense, unfunded commitment expense, provision for credit losses, fair value adjustment for marketable securities, outsourced special project expense, merger and acquisition expenses, special dividend from equity investment, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROE, as adjusted) (non-GAAP)(1)   12.77 %   11.48 %   11.68 %   12.08 %   12.39 %   12.13 %   12.36 %
Return on average tangible common equity (non-GAAP)(1)   17.40 %   0.14 %   19.55 %   20.04 %   21.01 %   8.68 %   21.26 %
Return on average tangible common equity excluding intangible amortization (non-GAAP)(1)   17.70 %   0.44 %   19.86 %   20.36 %   21.35 %   8.98 %   21.61 %
Return on average tangible common equity excluding branch write-off expense, unfunded commitment expense, provision for credit losses, fair value adjustment for marketable securities, outsourced special project expense, merger and acquisition expenses, special dividend from equity investment, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROTCE, as adjusted) (non-GAAP)(1)   21.63 %   19.22 %   19.51 %   20.45 %   21.37 %   20.42 %   21.45 %
                                           
                                           
(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
 
  Jun. 30,
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
  Jun. 30,
Jun. 30,
(Dollars and shares in thousands, except per share data)  2020    2020    2019    2019    2019      2020    2019  
                 
                                             
                 
Efficiency ratio   44.93 %   46.82 %   41.26 %   39.16 %   39.93 %     45.85 %   40.47 %
Efficiency ratio, as adjusted (non-GAAP)(1)   39.38 %   41.37 %   41.14 %   40.60 %   39.92 %     40.34 %   40.21 %
Net interest margin – FTE   4.11 %   4.22 %   4.24 %   4.32 %   4.28 %     4.17 %   4.29 %
Net interest margin – FTE, excluding PPP loans (non-GAAP)(1)   4.16 %   4.22 %   4.24 %   4.32 %   4.28 %     4.19 %   4.29 %
Fully taxable equivalent adjustment   1,434   $ 1,227   $ 1,322   $ 1,247   $ 1,319     $ 2,661   $ 2,686  
Total revenue (net)   173,690     162,652     167,812     167,726     164,053       336,342     327,195  
Pre-tax net income, excluding provision for credit losses and unfunded commitment expense   102,732     92,178     96,470     99,962     96,429       194,910     190,514  
Net income, excluding provision for credit losses and unfunded commitment expense   78,084     70,382     73,262     72,763     73,147       148,466     144,497  
Return on average assets (pre-tax net income, excluding provision for credit losses and unfunded commitment expense) (non-GAAP)(1)   2.53 %   2.45 %   2.56 %   2.65 %   2.56 %     2.49 %   2.55 %
Return on average assets, excluding provision for credit losses and unfunded commitment expense (non-GAAP)(1)   1.92 %   1.87 %   1.94 %   1.93 %   1.94 %     1.90 %   1.93 %
Total purchase accounting accretion   7,036     7,647     9,133     8,462     9,240       14,683     18,295  
Average purchase accounting loan discounts   62,822     69,365     91,869     112,623     122,197       66,105     126,871  
                 
                 
OTHER OPERATING EXPENSES                
                 
Advertising   795   $ 1,226   $ 1,340   $ 1,201   $ 1,095     $ 2,021   $ 2,146  
Merger and acquisition expenses       711                   711      
Amortization of intangibles   1,486     1,517     1,565     1,587     1,587       3,003     3,173  
Electronic banking expense   2,054     1,715     1,870     1,901     1,851       3,769     3,754  
Directors’ fees   412     424     396     380     392       836     826  
Due from bank service charges   239     223     289     272     282       462     520  
FDIC and state assessment   1,846     1,548     1,635     (532 )   1,655       3,394     3,365  
Hurricane expense                             897  
Insurance   711     746     790     698     661       1,457     1,358  
Legal and accounting   1,278     919     1,633     1,414     989       2,197     1,970  
Other professional fees   1,735     3,226     3,189     1,906     2,306       4,961     5,118  
Operating supplies   553     535     469     511     505       1,088     1,041  
Postage   313     327     327     320     293       640     619  
Telephone   310     324     312     289     306       634     609  
Unfunded commitments   9,214     7,775                   16,989      
Other expense   4,352     4,505     6,058     4,792     5,035       8,857     9,989  
                                             
Total other operating expenses $ 25,298   $ 25,721   $ 19,873   $ 14,739   $ 16,957     $ 51,019   $ 35,385  
                                             
                 
(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)
                               
    Jun. 30,     Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,  
(Dollars in thousands)   2020     2020     2019     2019     2019  
                               
BALANCE SHEET RATIOS                              
                               
Total loans to total deposits   90.73 %   98.87 %   96.38 %   97.51 %   97.41 %
Common equity to assets   14.75 %   15.65 %   16.71 %   16.57 %   15.84 %
Tangible common equity to tangible assets (non-GAAP)(1)   9.35 %   9.79 %   10.80 %   10.59 %   9.96 %
                               
                               
LOANS RECEIVABLE                              
                               
Real estate                              
Commercial real estate loans                              
Non-farm/non-residential $ 4,325,795   $ 4,357,007   $ 4,412,769   $ 4,375,970   $ 4,495,558  
Construction/land development   1,818,151     1,892,394     1,776,689     1,827,454     1,930,838  
Agricultural   105,554     89,630     88,400     87,087     85,045  
Residential real estate loans                              
Residential 1-4 family   1,730,716     1,775,610     1,819,221     1,808,099     1,852,784  
Multifamily residential   482,635     411,960     488,278     498,079     523,789  
Total real estate   8,462,851     8,526,601     8,585,357     8,596,689     8,888,014  
Consumer   851,344     852,174     511,909     469,741     455,554  
Commercial and industrial   2,228,816     1,759,752     1,528,003     1,479,724     1,515,357  
Agricultural   80,023     64,582     63,644     90,343     80,621  
Other   332,709     181,873     180,797     135,449     113,583  
Loans receivable $ 11,955,743   $ 11,384,982   $ 10,869,710   $ 10,771,946   $ 11,053,129  
                               
Paycheck Protection Program (PPP) loans (included in total loans receivable)   848,628                  
                               
ALLOWANCE FOR CREDIT LOSSES                              
                               
Balance, beginning of period $ 228,923   $ 102,122   $ 104,304   $ 106,066   $ 106,357  
Impact of adopting ASC 326       43,988              
Allowance for credit losses on acquired loans       357              
Loans charged off   2,582     4,265     2,631     2,302     2,279  
Recoveries of loans previously charged off   558     740     449     540     663  
Net loans (recovered)/charged off   2,024     3,525     2,182     1,762     1,616  
Provision for credit loss – loans   11,441     76,672             1,325  
Provision for credit loss – acquired loans       9,309              
Total credit loss expense excluding provision for credit loss – investment securities   11,441     85,981             1,325  
Balance, end of period $ 238,340   $ 228,923   $ 102,122   $ 104,304   $ 106,066  
                               
Net (recoveries) charge-offs to average total loans   0.07 %   0.13 %   0.08 %   0.06 %   0.06 %
Allowance for credit losses to total loans   1.99 %   2.01 %   0.94 %   0.97 %   0.96 %
Allowance for credit losses to total loans, excluding PPP loans   2.15 %   2.01 %   0.94 %   0.97 %   0.96 %
                               
NON-PERFORMING ASSETS                              
                               
Non-performing loans                              
Non-accrual loans $ 52,074   $ 52,131   $ 47,607   $ 48,640   $ 52,841  
Loans past due 90 days or more   7,824     7,760     7,238     9,964     9,961  
Total non-performing loans   59,898     59,891     54,845     58,604     62,802  
Other non-performing assets                              
Foreclosed assets held for sale, net   6,292     8,204     9,143     8,639     13,734  
Other non-performing assets   247     447     447     447     947  
Total other non-performing assets   6,539     8,651     9,590     9,086     14,681  
Total non-performing assets $ 66,437   $ 68,542   $ 64,435   $ 67,690   $ 77,483  
                               
Allowance for credit losses for loans to non-performing loans   397.91 %   382.23 %   186.20 %   177.98 %   168.89 %
Non-performing loans to total loans   0.50 %   0.53 %   0.50 %   0.54 %   0.57 %
Non-performing assets to total assets   0.39 %   0.44 %   0.43 %   0.45 %   0.51 %
                               
                               
(1) Calculation of this metric and the reconciliation to GAAP is included in the schedules accompanying this release.    
           

Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
                                     
  Three Months Ended
  June 30, 2020
    March 31, 2020
   Average    Income/   Yield/
     Average    Income/   Yield/
(Dollars in thousands)  Balance    Expense   Rate
     Balance    Expense   Rate
                                     
ASSETS                                    
Earning assets                                    
Interest-bearing balances due from banks $ 753,093   $ 211   0.11 %     $ 331,038   $ 1,116   1.36 %
Federal funds sold         0.00 %       5,218     21   1.62 %
Investment securities – taxable   1,673,334     8,693   2.09 %       1,710,288     9,776   2.30 %
Investment securities – non-taxable – FTE   461,640     4,890   4.26 %       374,198     4,090   4.40 %
Loans receivable – FTE   11,790,398     159,238   5.43 %       11,007,958     158,399   5.79 %
Total interest-earning assets   14,678,465     173,032   4.74 %       13,428,700     173,402   5.19 %
Non-earning assets   1,640,741                   1,704,775            
Total assets $ 16,319,206                 $ 15,133,475            
                                     
LIABILITIES AND SHAREHOLDERS’ EQUITY                                    
Liabilities                                    
Interest-bearing liabilities                                    
Savings and interest-bearing transaction accounts $ 7,651,259   $ 7,818   0.41 %     $ 7,041,303   $ 15,803   0.90 %
Time deposits   1,855,626     7,298   1.58 %       1,943,721     8,395   1.74 %
Total interest-bearing deposits   9,506,885     15,116   0.64 %       8,985,024     24,198   1.08 %
Federal funds purchased         0.00 %       6,264     13   0.83 %
Securities sold under agreement to repurchase   154,628     260   0.68 %       138,180     462   1.34 %
FHLB borrowed funds   652,354     2,656   1.64 %       623,525     2,698   1.74 %
Subordinated debentures   369,846     4,899   5.33 %       369,652     5,079   5.53 %
Total interest-bearing liabilities   10,683,713     22,931   0.86 %       10,122,645     32,450   1.29 %
Non-interest bearing liabilities                                    
Non-interest bearing deposits   3,038,490                   2,410,583            
Other liabilities   137,062                   119,143            
Total liabilities   13,859,265                   12,652,371            
Shareholders’ equity   2,459,941                   2,481,104            
Total liabilities and shareholders’ equity $ 16,319,206                 $ 15,133,475            
Net interest spread             3.88 %                 3.90 %
Net interest income and margin – FTE       $ 150,101   4.11 %           $ 140,952   4.22 %
                                     

Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
                 
  Six Months Ended
  June 30, 2020
    June 30, 2019
  Average   Income/   Yield/
    Average
  Income/
  Yield/
(Dollars in thousands) Balance   Expense   Rate
    Balance
  Expense
  Rate
                                     
ASSETS                                    
Earning assets                                    
Interest-bearing balances due from banks $ 542,066   $ 1,327   0.49 %     $ 285,688   $ 3,171   2.24 %
Federal funds sold   2,609     21   1.62 %       1,544     21   2.74 %
Investment securities – taxable   1,690,083     18,469   2.20 %       1,618,369     21,356   2.66 %
Investment securities – non-taxable – FTE   417,919     8,981   4.32 %       385,064     8,602   4.50 %
Loans receivable – FTE   11,399,178     317,636   5.60 %       11,018,616     330,310   6.05 %
Total interest-earning assets   14,051,855     346,434   4.96 %       13,309,281     363,460   5.51 %
Non-earning assets   1,674,486                   1,779,908            
Total assets $ 15,726,341                 $ 15,089,189            
                                     
LIABILITIES AND SHAREHOLDERS’ EQUITY                                    
Liabilities                                    
Interest-bearing liabilities                                    
Savings and interest-bearing transaction accounts $ 7,346,281   $ 23,621   0.65 %     $ 6,637,512   $ 40,174   1.22 %
Time deposits   1,899,673     15,693   1.66 %       1,923,457     17,541   1.84 %
Total interest-bearing deposits   9,245,954     39,314   0.86 %       8,560,969     57,715   1.36 %
Federal funds purchased   3,132     13   0.83 %             0.00 %
Securities sold under agreement to repurchase   146,404     722   0.99 %       147,623     1,264   1.73 %
FHLB borrowed funds   637,940     5,354   1.69 %       1,045,370     10,840   2.09 %
Subordinated debentures   369,749     9,978   5.43 %       368,981     10,498   5.74 %
Total interest-bearing liabilities   10,403,179     55,381   1.07 %       10,122,943     80,317   1.60 %
Non-interest bearing liabilities                                    
Non-interest bearing deposits   2,724,537                   2,496,604            
Other liabilities   128,102                   108,866            
Total liabilities   13,255,818                   12,728,413            
Shareholders’ equity   2,470,523                   2,360,776            
Total liabilities and shareholders’ equity $ 15,726,341                 $ 15,089,189            
Net interest spread             3.89 %                 3.91 %
Net interest income and margin – FTE       $ 291,053   4.17 %           $ 283,143   4.29 %
                                     

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
                                             
  Quarter Ended
    Six Months Ended
 
(Dollars and shares in thousands,   Jun. 30,     Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,       Jun. 30,     Jun. 30,  
except per share data)   2020     2020     2019     2019     2019       2020     2019  
                                             
EARNINGS, AS ADJUSTED                                            
                                             
GAAP net income available to common shareholders (A) $ 62,827   $ 507   $ 73,262   $ 72,763   $ 72,164     $ 63,334   $ 143,514  
Pre-tax adjustments                                            
Branch write-off expense   981                       981      
Unfunded commitment expense   9,214     7,775                   16,989      
Provision for credit losses   11,441     86,823             1,325       98,264     1,325  
Fair value adjustment for marketable securities   (919 )   5,818                   4,899      
Outsourced special project expense       1,092     631               1,092     900  
Merger and acquisition expenses       711                   711      
Special dividend from equity investment       (7,004 )   (861 )             (7,004 )   (2,134 )
FDIC Small Bank Assessment Credit               (2,291 )              
Hurricane expenses                             897  
Total pre-tax adjustments   20,717     95,215     (230 )   (2,291 )   1,325       115,932     988  
Tax-effect of adjustments   5,414     24,884     (59 )   (592 )   342       30,299     249  
Adjustments after-tax   15,303     70,331     (171 )   (1,699 )   983       85,633     739  
Florida tax savings               (497 )   252           497  
BOLI redemption tax               3,667                
Total adjustments after-tax (B)   15,303     70,331     (171 )   1,471     1,235       85,633     1,236  
Earnings, as adjusted (C) $ 78,130   $ 70,838   $ 73,091   $ 74,234   $ 73,399     $ 148,967   $ 144,750  
                                             
Average diluted shares outstanding (D)   165,163     166,014     166,696     167,178     167,791       165,588     168,686  
                                             
GAAP diluted earnings per share: (A/D) $ 0.38   $   $ 0.44   $ 0.44   $ 0.43     $ 0.38   $ 0.85  
Adjustments after-tax: (B/D)   0.09     0.43             0.01       0.52     0.01  
Diluted earnings per common share, as adjusted, excluding branch write-off expense, unfunded commitment expense, provision for credit losses, fair value adjustment for marketable securities, outsourced special project expense, merger and acquisition expenses, special dividend from equity investment, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (C/D) $ 0.47   $ 0.43   $ 0.44   $ 0.44   $ 0.44     $ 0.90   $ 0.86  
                                             
ANNUALIZED RETURN ON AVERAGE ASSETS                                            
                                             
Return on average assets: (A/G)   1.55 %   0.01 %   1.94 %   1.93 %   1.92 %     0.81 %   1.92 %
Return on average assets excluding branch write-off expense, unfunded commitment expense, provision for credit losses, fair value adjustment for marketable securities, outsourced special project expense, merger and acquisition expenses, special dividend from equity investment, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROA, as adjusted) ((A+F)/G)   1.93 %   1.88 %   1.94 %   1.96 %   1.95 %     1.90 %   1.93 %
Return on average assets (pre-tax net income, excluding provision for credit losses and unfunded commitment expense): (B/G)   2.53 %   2.45 %   2.56 %   2.65 %   2.56 %     2.49 %   2.55 %
Return on average assets, excluding provision for credit losses and unfunded commitment expense: (C/G)   1.92 %   1.87 %   1.94 %   1.93 %   1.94 %     1.90 %   1.93 %
Return on average assets excluding intangible amortization: ((A+E)/(G-H))   1.68 %   0.05 %   2.12 %   2.10 %   2.09 %     0.90 %   2.09 %
                                             
GAAP net income available to common shareholders (A) $ 62,827   $ 507   $ 73,262   $ 72,763   $ 72,164     $ 63,334   $ 143,514  
Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (B) $ 102,732   $ 92,178   $ 96,470   $ 99,962   $ 96,429     $ 194,910   $ 190,514  
Net income, excluding provision for credit losses and unfunded commitment expense (C) $ 78,084   $ 70,382   $ 73,262   $ 72,763   $ 73,147     $ 148,466   $ 144,497  
Amortization of intangibles (D)   1,486     1,517     1,565     1,587     1,587       3,003     3,173  
Amortization of intangibles after-tax (E)   1,098     1,121     1,161     1,177     1,177       2,218     2,354  
Adjustments after-tax (F)   15,303     70,331     (171 )   1,471     1,235       85,633     1,236  
Average assets (G)   16,319,206     15,133,475     14,944,368     14,993,232     15,098,600       15,726,341     15,089,189  
Average goodwill, core deposits & other intangible assets (H)   1,007,307     999,004     995,721     997,309     998,898       1,003,156     999,692  
                                             

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
                                             
  Quarter Ended
    Six Months Ended
 
(Dollars and shares in thousands,   Jun. 30,     Mar. 31,     Dec. 31     Sep. 30,     Jun. 30,       Jun. 30,     Jun. 30,  
except per share data)   2020     2020     2019     2019     2019       2020     2019  
                                             
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY                                            
                                             
Return on average common equity: (A/D)   10.27 %   0.08 %   11.71 %   11.84 %   12.18 %     5.16 %   12.26 %
Return on average common equity excluding branch write-off expense, unfunded commitment expense, provision for credit losses, fair value adjustment for marketable securities, outsourced special project expense, merger and acquisition expenses, special dividend from equity investment, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROE, as adjusted) ((A+C)/D)   12.77 %   11.48 %   11.68 %   12.08 %   12.39 %     12.13 %   12.36 %
Return on average tangible common equity: (A/(D-E))   17.40 %   0.14 %   19.55 %   20.04 %   21.01 %     8.68 %   21.26 %
Return on average tangible common equity excluding intangible amortization: (B/(D-E))   17.70 %   0.44 %   19.86 %   20.36 %   21.35 %     8.98 %   21.61 %
Return on average tangible common equity excluding branch write-off expense, unfunded commitment expense, provision for credit losses, fair value adjustment for marketable securities, outsourced special project expense, merger and acquisition expenses, special dividend from equity investment, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROTCE, as adjusted) ((A+C)/(D-E))   21.63 %   19.22 %   19.51 %   20.45 %   21.37 %     20.42 %   21.45 %
                                             
GAAP net income available to common shareholders (A) $ 62,827   $ 507   $ 73,262   $ 72,763   $ 72,164     $ 63,334   $ 143,514  
Earnings excluding intangible amortization (B)   63,925     1,628     74,423     73,940     73,341       65,553     145,868  
Adjustments after-tax (C)   15,303     70,331     (171 )   1,471     1,235       85,633     1,236  
Average common equity (D)   2,459,941     2,481,104     2,482,406     2,437,820     2,376,718       2,470,523     2,360,776  
Average goodwill, core deposits & other intangible assets (E)   1,007,307     999,004     995,721     997,309     998,898       1,003,156     999,692  
                                             
                                             
EFFICIENCY RATIO                                            
                                             
Efficiency ratio: ((C-E)/(A+B+D))   44.93 %   46.82 %   41.26 %   39.16 %   39.93 %     45.85 %   40.47 %
Efficiency ratio, as adjusted: ((C-E-G)/(A+B+D-F))   39.38 %   41.37 %   41.14 %   40.60 %   39.92 %     40.34 %   40.21 %
                                             
Net interest income (A) $ 148,667   $ 139,725   $ 139,783   $ 142,977   $ 140,987     $ 288,392   $ 280,457  
Non-interest income (B)   25,023     22,927     28,029     24,749     23,066       47,950     46,738  
Non-interest expense (C)   80,172     78,249     71,342     67,764     67,624       158,421     136,681  
Fully taxable equivalent adjustment (D)   1,434     1,227     1,322     1,247     1,319       2,661     2,686  
Amortization of intangibles (E)   1,486     1,517     1,565     1,587     1,587       3,003     3,173  
                                             
Adjustments:                                            
Non-interest income:                                            
Special dividend from equity investment $   $ 7,004   $ 861   $   $     $ 7,004   $ 2,134  
Fair value adjustment for marketable securities   919     (5,818 )                 (4,899 )    
Gain (loss) on OREO   235     277     159     334     58       512     264  
Gain (loss) on branches, equipment and other assets, net   54     82     35     12     (129 )     136     (50 )
Gain (loss) on securities           (2 )                  
Total non-interest income adjustments (F) $ 1,208   $ 1,545   $ 1,053   $ 346   $ (71 )   $ 2,753   $ 2,348  
                                             
Non-interest expense:                                            
Branch write-off expense $ 981   $   $   $   $     $ 981   $  
Unfunded commitment expense   9,214     7,775                   16,989      
FDIC Small Bank Assessment Credit               (2,291 )              
Merger Expenses       711                   711      
Hurricane damage expense                             897  
Outsourced special project expense       1,092     631               1,092     900  
Total non-interest expense adjustments (G) $ 10,195   $ 9,578   $ 631   $ (2,291 ) $     $ 19,773   $ 1,797  
                                             
                                             
ANNUALIZED NET INTEREST MARGIN                                            
                                             
Net interest margin: A/C   4.11 %   4.22 %   4.24 %   4.32 %   4.28 %     4.17 %   4.29 %
Net interest margin, excluding PPP loans (non-GAAP): B/D   4.16 %   4.22 %   4.24 %   4.32 %   4.28 %     4.19 %   4.29 %
                                             
Net interest income – FTE (A) $ 150,101   $ 140,952   $ 141,105   $ 144,224   $ 142,306     $ 291,053   $ 283,143  
PPP loan interest & discount accretion income   4,450                       4,450      
Net interest income – FTE, excluding PPP loans (non-GAAP) (B) $ 145,651   $ 140,952   $ 141,105   $ 144,224   $ 142,306     $ 286,603   $ 283,143  
                                             
Average interest-earning assets (C) $ 14,678,465   $ 13,428,700   $ 13,188,508   $ 13,235,774   $ 13,321,663     $ 14,051,855   $ 13,309,281  
Average PPP loans   585,946                       292,973      
Average interest-earning assets, excluding PPP loans (non-GAAP) (D) $ 14,092,519   $ 13,428,700   $ 13,188,508   $ 13,235,774   $ 13,321,663     $ 13,758,882   $ 13,309,281  
                                             

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
               
  Quarter Ended
  Six Months Ended
(Dollars and shares in thousands,   Jun. 30,     Mar. 31,     Dec. 31     Sep. 30,     Jun. 30,     Jun. 30,     Jun. 30,
except per share data)   2020     2020     2019     2019     2019     2020     2019
                                         
Pre-tax net income $ 82,077   $ (2,420 ) $ 96,470   $ 99,962   $ 95,104   $ 79,657   $ 189,189
Provision for credit losses   11,441     86,823             1,325     98,264     1,325
Unfunded commitment expense   9,214     7,775                 16,989    
Pre-tax net income, excluding provision for credit losses and unfunded commitment expense $ 102,732   $ 92,178   $ 96,470   $ 99,962   $ 96,429   $ 194,910   $ 190,514
                                         
                                         
  Quarter Ended
           
                                         
    Jun. 30,     Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,            
(Dollars in thousands)   2020     2020     2019     2019     2019            
                                         
TANGIBLE BOOK VALUE PER COMMON SHARE                                        
                                         
Book value per common share: (A/B) $ 15.09   $ 14.72   $ 15.10   $ 14.80   $ 14.46            
Tangible book value per common share: ((A-C-D)/B)   8.99     8.61     9.12     8.83     8.50            
                                         
Total stockholders’ equity (A) $ 2,492,146   $ 2,430,271   $ 2,511,531   $ 2,469,389   $ 2,421,406            
End of period common shares outstanding (B)   165,206     165,148     166,373     166,860     167,466            
Goodwill (C)   973,025     973,025     958,408     958,408     958,408            
Core deposit and other intangibles (D)   33,569     35,055     36,572     38,136     39,723            
                                         
                                         
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS                                        
                                         
Equity to assets: (B/A)   14.75 %   15.65 %   16.71 %   16.57 %   15.84 %          
Tangible common equity to tangible assets: ((B-C-D)/(A-C-D))   9.35 %   9.79 %   10.80 %   10.59 %   9.96 %          
                                         
Total assets (A) $ 16,895,406   $ 15,531,732   $ 15,032,047   $ 14,901,935   $ 15,287,575            
Total stockholders’ equity (B)   2,492,146     2,430,271     2,511,531     2,469,389     2,421,406            
Goodwill (C)   973,025     973,025     958,408     958,408     958,408            
Core deposit and other intangibles (D)   33,569     35,055     36,572     38,136     39,723            
                                         

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