Home BancShares, Inc.

Greetings, ladies and gentlemen. Welcome to the Home Bank Shares Incorporated third quarter 2020 earnings call. The purpose of this call is to discuss the information and data provided in the quarterly earnings release issued this morning. The company presenters will begin with prepared remarks, then entertain questions. Please note that if you would like to ask a question during the question and answer session, please press star then one on a touchtone phone. If you decide you want to withdraw your question, please press star then 2 to remove yourself from the list. The company has asked me to remind everyone to refer to their cautionary note regarding forward-looking statements. You will find this note on page 3 of their Form 10-K filed with the SEC in February 2020. At this time, all participants are in a listen-only mode, and this conference is being recorded. If you need operator assistance during the conference, please press star then 0. It is now my pleasure to turn the call over to Donna Townsville, Director of Investor Relations. Please go ahead.

Thank you, Gary. I'm Donna Townsville, Director of Investor Relations. Our management team would like to thank you for joining our third quarter of Congress call. Reporting today will be Tracy French, our President and CEO of Centennial Bank, Brian Davis, our Chief Financial Officer, Kevin Hester, our Chief Lending Officer, Chris Fulton, President of CCFG, John Marshall, President of Shore Premier Finance, Stephen Pittson, Chief Operating Officer, and our Chairman, John Allison. First up today to share with you will be Tracy French with a Centennial Bank report.

Good afternoon, and thank you, Donna. That was a great quarter to report for us today. Steady as it goes for Centennial Bank as we navigate through 2020. The water may have been a little choppy, along with a hurricane or four. all while our company continues to produce very solid results. And in some cases, we'll have the best results ever. Compliments to our experienced board of directors, our outstanding Centennial Bank and home bank management staff. Our chairman has been known to say the word experience, and 2020 has been exactly that. The past 20 years for this company has proven time and time again that working together, we can accomplish anything, no matter how high the water gets. We announced our quarterly results this morning, and they represent that home bank shares are weathering well in all areas. And that's quite impressive. We have used the P letter a lot over this past year. Powerful, profitable, PPP. And I have a strong feeling you're going to hear a little more P's this afternoon from our chairman. Others will report details of the quarter and year. It will be clear our company is focused on profitability. Asset quality, margin, while maintaining the safe and sound company we are. Let me just share a few things. EPS, 42 cents. Total revenue, $176 million. Those are home bank shares. Switching over to Centennial Bank. Our return on assets, as adjusted, is over 2% year-to-date. Our non-GAAP efficiency ratio, 37% year-to-date. 336% coverage of our ACL to non-performing loans. Double-digit increase in our non-interest income, mortgage leading the way. Operating expense, the same as last year, not included our unfunded commitment charge that was done. Always the one I like to hear is the total revenue, $550 $33 million a year today. Again, pretty darn good first nine months. Kevin's going to give us an update since our fireside chats that Don organized throughout this past quarter on loans. Chris and John will join in with the specialty groups of their areas. I would like to share that our group of lenders are doing a great job in managing their portfolios. They're in constant communication with our borrowers and customers. This company has done forever. We will call it as we see it. I go back to the word experience. If a customer needs assistance, we'll work with them while protecting the bank. We have the experience in difficult times if we've worked out several challenged institutions over the 20-plus years. Our team is ready to assist in any needs. Our allowance for credit losses is 2.29% when you add back our PP loans and our allowance for credit losses to non-performing coverage is 336%. While we may have some losses, our teams feel very good about these numbers and the balance sheet of our very healthy company. Brian and Steven will give a little discussion on the margin as it still remains top focus for the company. Just for an example, Johnny calls me, and he does a lot. In the morning, I say, good morning, Johnny. He says, what's the margin? I say, good morning, Johnny. So that's how top-of-the-line focused it is. Brian and Steven will also give a little color on the deposit or liquidity situation and the strength of capital that the company has. There's one thing for certain. We will continue to manage a safe and sound company, manage in all areas, income and expenses, be in touch with our customers, and provide the best returns to our shareholders.