Home BancShares, Inc.

Good day and welcome to the Home Bank Shares, Inc. First Quarter Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note this event is being recorded. I would now like to turn the conference over to Donna Townsend. Please go ahead.

Thank you, Elisa. I'm Donna Townsville, Director of Investor Relations, and our management team would like to thank you for joining our first quarterly conference call of 2021. Reporting today will be our Chairman, John Allison, Tracy French, President and CEO of Centennial Bank, Brian Davis, our Chief Financial Officer, Kevin Hester, Chief Lending Officer, Chris Poulton, President of CCFG, John Marshall, President of Shore Premier Finance, and Stephen Tipton, Chief Operating Officer. Hopefully by now, you have had the opportunity to review our proxy and read about the work that we have done in the last year on our ESG initiative. While our work is not complete, we have made great strides, and this will be an ongoing effort at home. Some other exciting news that I'd like to share is on Tuesday, home was named to the Forbes list of World's Best Banks. We made this list last year, and we have also been named to Ford's Best Banks in America every year since 2015. One aspect of this is a performance metric, and the other aspect is driven by customer service. And because of that, that makes us very proud that we continue to excel in both of these categories. Now, for our first report on the quarter, we will hear from our chairman, John Allison. John Allison

Thank you, Donna. That was a nice award. We continue to stack them up over a period of time. Welcome to Home Bank Chair's first quarter earnings release and conference call. My name is John Allison, and I have the honor to serve as your executive chairman, president, chief executive officer, and I'm also a co-founder of the company. We're here to discuss the results of our first quarter 21 performance. Donna mentioned the press release. You've probably seen it. first quarter, from a pure net profit and revenue perspective, was the most powerful quarter in the company's almost 22-year history, resulting in a record net income of $91.6 million. That's another world record for our company, as one of our former teammates would say. Home Bank Shares is known for being one of the top-performing banking corporations in America for the last 10 to 15 years, and this quarter was no different. Sales revenue was off the charts with total revenue of $207,927,000, a best ever. That's total revenue. But what's more important is how much of the total revenue did we bring down to the bottom line after tax for our shareholders. Well, I want you to know that of the gross $207 million, we brought 44.05% to the after tax bottom line. or $91.6 million that is available to our shareholders. In addition, the total revenue, our net revenue, was also the highest it had ever been at 193.4. I think that's a beat on the street, but our company also brought 47.36% of the net revenue after tax to the bottom line. These numbers reflect the earnest power of your company through the low cost of funds, strong yields, and best-in-class efficiency, it resulted in another high watermark for our shareholders of $0.55 earnings per share for the quarter. PPRN also hit a new record high of $120.5, representing a P5NR of 62.32. That means that we brought 62.32% of the net revenue to the pre-tax, pre-provision shoebox. as our longtime director, Alex Leblon, has labeled it. Here's some additional highlights. Pre-tax, pre-provision ROA was 2.92. I think that's a record. I think that's the best. After-tax ROA, 2.22. Return on tangible common equity, 22.90. That's one of the best ever. I think we've had one better than that. Earnings per share, 55 cents. That is the best. And on the NEM, interestingly enough, we increased our NEM by two basis points to 402 from four basis points. Reserve to loans, without the PPP loans, remains at 2.40. Stable asset quality, overall yields have remained strong at 5.56. Now, that includes accretion of in-income and PPP. And without those, the yield was 5.16. Mortgage produced another strong quarter with $8,167,000 versus last year at $2.6 million. Efficiency ratio of 36.6%. That's got to be best in class or right at it. Are you happy with that, Donna? You happy with the 36%? You're the efficiency lady.