Home Bancshares, inc (HOMB) Q3 2021 Earnings Call Transcript

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Home Bancshares, inc (NASDAQ:HOMB)
Q3 2021 Earnings Call
Oct 21, 2021, 2:00 p.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good afternoon, and welcome to the Home Bancshares, Inc. Third Quarter 2021 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Donna Townsell, Director of Investor Relations. Please go ahead.

Donna J. Townsell — Senior Executive Vice President, Director of Investor Relations

Thank you, Gary. As he said, I’m Donna Townsell, Director of Investor Relations, and our management team would like to thank you for joining our third quarter conference call today. Reporting today will be our Chairman, John Allison; Tracy French, President and CEO of Centennial Bank; Brian Davis, our Chief Financial Officer; Kevin Hester, our Chief Lending Officer; Chris Poulton, President of CCFG; John Marshall, President of Shore Premier Finance; and Stephen Tipton, Chief Operating Officer.

And now, I am happy to turn the call over to our Chairman, John Allison, for our first report on the quarter.

John W. Allison — President and Chief Executive Officer

Thank you, Donna. I’m going to turn my phone off. We want to hear emerald in the morning, right. That’s what I have on my phone. I’m being emerald in the morning. Good afternoon. Welcome to Home Bancshares Third Quarter Earnings Release and Conference Call. I have with me today most of Home’s Executive Committee, and they will be here to present as well as answer any questions that you might have. Home have another very productive and solid quarter with earnings of $75 million or $0.46 per share. During the first nine months of 2021, your company earned 245,664,000 or $1.49 a share. As we would have said in the past, that is a world record. Home is again marching toward our $300 million plus goal for the fourth year in a row. I can’t ask much more of that out of our people. If you pull out $3 billion in excess capital, the company is — which is virtually earning 0, the company is running right at a 2% ROA. Even though we’re running at 168 now, when we pull it out, it runs at two. We’ve talked about adding additional earning assets through M&A for several years, and I’m happy to welcome our new partners with Happy Bank, both shareholders and employees, to the Home Bancshares’ family. When I think about, if I could choose to operate in the two best states in the United States that are both business-friendly and tax-friendly and have the largest incoming demographic movement, it would be Florida and Texas. Panhandle to Panhandle, now, well, you can check those boxes, Florida check and Texas check. The Happy deal will continue to propel the future of Home and build long-term shareholder value of our combined companies, and we’re certainly more valuable together than we are apart. As I said on the deal announcement, if this deal didn’t…