Home BancShares, Inc.

Greetings, ladies and gentlemen. Welcome to the Home Bank Shares Incorporated third quarter 2024 earnings call. The purpose of this call is to discuss the information and data provided in the quarterly earnings release issued after the market closed yesterday. 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 two 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 on page three of their Form 10-K filed with the SEC in February 2024. 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 zero. It is now my pleasure to turn the call over to Donna Townsall, Director of Investor Relations.

Thank you. Good afternoon, and welcome to our third quarter conference call. With me for today's discussion is our Chairman, John Allison, Stephen Tipton, Chief Executive Officer of Centennial Bank, Kevin Hester, President and Chief Lending Officer, Brian Davis, our Chief Financial Officer, Tracy French, Chairman of Centennial Bank, Chris Poulton, President of CCFG, and John Marshall, President of Shore Premier Finance. To open our discussion on the quarter today, we will begin with some remarks from our Chairman, John Allison.

Thank you, Donna. Welcome, everyone. Welcome to Home Bank Shares' third quarter 2024 earnings release and conference call. Your company had another great quarter. The quarter was very strong and would have finished as one of the best ever. That was until the last few days of September when the first of two disastrous hurricanes took a swap across Florida, where home has a little over $1 billion in customer loans. We felt it was prudent to move into hurricane mode as we have in past years when weather events affected the area where we do considerable business. Some of our customers are still involved in litigation over the claims from the last hurricane. We had closed the books for the end of the first quarter after the first hurricane when the reserve estimate that we made we thought was reasonable. And then here comes Milton, number two hurricane. And, by the way, in two weeks. We're always trying to get out in front of situations that may affect our earnings or our company in any way. We've dealt with these events over many years. We even have hurricane procedures, and we've practiced for years. That includes satellite phones, electric generators, 1-800 wellness check-in numbers for employees, customer extensions, and the reality of losses. We would prefer to have 5% plus reserve for the main area of the storms. We already had a reserve of 2% for the area, and we're optimistic that we may not need over an additional 3%. Fingers crossed. As a result of our needed reserve, we will hopefully be in the $20 million or less range. Please don't hold me to that estimate because it's early and it's a fluid situation. We'll keep you updated as we hear more information, and I would expect the flow of information to improve. And by the way, Kevin updated me. Not only the hurricane, it spun up a lot of tornadoes outside of that, and our orange grove that we've had for years sent some pictures of some of those orange trees that were damaged. So we don't know the extent of that as of yet. As the quarter was coming to an end, I was very pleased with the results I was seeing. With July and August, were nicely above forecast, and September's daily report was also running ahead. I was expecting 55 to 56 cents for the quarter. One should never count his money until all the hay's in the barn. I knew better, but things were running pretty smooth, so I made the mistake and counted the money. We reported a 1.74 return on asset, ROA, and without the $16.7 million reserve, Our income would have been $112,578,000. That's an annualized income for the company of over $450 million and an ROA of 1.96. You can see why I was excited, and then bam, here's the hurricane. A little disappointing, but as always, we do what's in the best interest of our shareholders, period. Well, here's the numbers, and I think you'll agree with me. It was a good quarter X hurricanes. total revenue was $258 million. I didn't check, but that may be a world record, Brian. Is that a top number?