[vi] Home BancShares (HOMB) 2026年第三季度业绩电话会：创纪录盈利与净息差扩大

[vi]

[vi] Home BancShares（NYSE: HOMB）报告了又一个创纪录的季度业绩，这得益于净息差扩大、资金成本受控以及持续的资本回报。管理层在维持信贷质量和定价标准的同时，对贷款机会表达了更强的信心。

[vi] 核心要点

• [vi] 2026年第三季度调整后收益达到创纪录的1.291亿美元，即每股0.65美元，较第二季度增加100万美元。前九个月的调整后收益总计3.8亿美元，使公司保持在管理层所描述的迈向5亿美元年度目标的轨道上。
• [vi] 报告净息差环比上升2个基点至4.53%。剔除事件性收入的核心净息差上升3个基点至4.50%，9月末达到4.55%。
• [vi] 贷款发放额为8.5亿美元，平均收益率约为6.95%，而还款总额为10.1亿美元。平均贷款余额较第二季度仅减少2800万美元，未放款承诺仍保持在38亿美元以上。
• [vi] 第三季度，Home BancShares以约3930万美元回购了130万股股票。前九个月累计回购股票330万股，耗资9440万美元。季度股息增长9.5%至每股0.23美元。
• [vi] 管理层预计，与德克萨斯州大型商业及工业（C&I）非应计贷款相关的两项资产出售将产生约1.01亿至1.02亿美元的资金，相比之下账面余额为9100万美元，有可能实现约1000万美元的追回。
• [vi] 资本保持强劲，普通股一级资本（CET1）比率为16.7%，总风险资本比率为19.4%。尽管进行了股票回购且受到6500万美元AOCI（其他综合收益累计额）的影响，每股有形账面价值仍增加0.03美元至15.35美元。

[vi] 关键财务数据

[vi] 指标

[vi] 2026年第三季度业绩

[vi] 变化或背景

[vi] 调整后收益

[vi] 1.291亿美元

[vi] 较第二季度增加100万美元

[vi] 每股收益

[vi] $0.65

[vi] 管理层提及的创纪录季度业绩

[vi] 前九个月调整后收益

[vi] 3.8亿美元

[vi] 管理层今年的目标是5亿美元

[vi] 资产回报率

[vi] 2.11%

[vi] 管理层称回报率处于行业顶尖水平

[vi] 有形普通股权益回报率

[vi] 16.54%

[vi] TCE比率为13.48%

[vi] 报告净息差

[vi] 4.53%

[vi] 较第二季度上升2个基点

[vi] 核心净息差

[vi] 4.50%

[vi] 环比上升3个基点，同比上升4个基点

[vi] 季末核心净息差

[vi] 4.55%

[vi] 剔除事件性收入

[vi] 剔除事件性收入的贷款收益率

[vi] 6.91%

[vi] 季末为6.90%

[vi] 计息存款成本

[vi] 2.37%

[vi] 第三季度平均水平

[vi] 总存款成本

[vi] 1.83%

[vi] 9月末为1.81%

[vi] 贷款发放额

[vi] 8.5亿美元

[vi] 平均发放收益率约为6.95%

[vi] 贷款还款额

[vi] 10.1亿美元

[vi] 包括季度末的3亿至4亿美元

[vi] 未放款承诺管道

[vi] 超过38亿美元

[vi] 管理层报告称在其业务覆盖范围内存在机会

[vi] 无息存款

[vi] 42.1亿美元

[vi] 占总存款的22%以上

[vi] 每股有形账面价值

[vi] $15.35

[vi] 较第二季度增加0.03美元

[vi] CET1资本比率

[vi] 16.7%

[vi] 资本仍远高于内部运营需求

[vi] 总风险资本比率

[vi] 19.4%

[vi] 第三季度末水平

[vi] 拨备占总贷款比率

[vi] 1.93%

[vi] 第三季度末水平

[vi] 效率比率

[vi] 40.84%

[vi] 管理层报告的本季度数据

[vi] 业务与运营表现

[vi] 第三季度传统存款减少了3.58亿美元，主要是由于市政存款余额下降、9月税款支付以及减少了收购Mountain Commerce Bancorp所带来的批发存款。管理层预计部分市政存款将会回流，但强调德克萨斯州、阿肯色州、阿拉巴马州和佛罗里达州的存款竞争依然激烈。

[vi] 该公司在本季度将总借款减少了2亿美元。借款费用下降了230万美元，其中包括存款利息支出减少120万美元，以及联邦住房贷款银行和其他借款成本减少110万美元。

[vi] 田纳西州产生了近7000万美元的贷款发放。管理层表示，Mountain Commerce交易表现持续良好，系统转换计划在11月6日那个周末进行。该公司继续以实现略高于500万美元的年化成本节省为目标，预计系统转换后还将带来额外效益。

[vi] Home BancShares在未来12个月内将有约12亿美元的固定利率贷款到期，加权平均利率为5.72%。该公司还拥有约70亿美元的浮动利率贷款，其中包括约35亿美元挂钩《华尔街日报》优惠利率（WSJ Prime），以及33亿美元挂钩SOFR。

[vi] 管理层业绩指引

[vi] 管理层表示，资产负债表的定位仍受益于利率上升。资产负债模型显示，在利率上升100个基点的情景下，净利息收入将增长5.6%至近6%。这一结果仍取决于存款定价、贷款竞争以及到期资产的重新定价。

[vi] 在核心净息差以4.55%结束第三季度后，管理层表示，维持类似区间（甚至可能略高）将是令人满意的。该公司对支票和储蓄账户设定的存款Beta值约为40%，不过实际重新定价是因客户而异的。

[vi] 由于整个业务领域的改善机会，管理层对贷款增长持更为乐观的态度。然而，第四季度的还款额可能仍接近第三季度的水平，因为一些预期交易已顺延至新季度。

[vi] 基于当前的收回情况以及德克萨斯州商业及工业（C&I）信贷问题的预期解决，管理层预计不会在第四季度计提拨备。管理层还指出，如果当前趋势持续，低拨备或零拨备可能会延续至2027年初。

[vi] 对于第四季度的费用，管理层认为与第三季度大致持平的水平是合理的。Mountain Commerce带来的节省、物业成本的减少以及对低绩效业务的审查，预计将有助于抵消通胀压力。

[vi] 风险与关注领域

[vi] 存款竞争仍是一个重大制约因素。竞争对手对某些12个月期产品的宣传利率高达4.5%，而Home BancShares通常在3%出头至3%中段的范围内谈判新的资金获取机会，并在个别情况下支付约4%的利率。

[vi] 管理层表示，贷款定价纪律可能正在改善，但市场上的结构性纪律并未发生实质性变化。该公司继续将资产质量、盈利能力和增长按此顺序作为优先考虑事项。

[vi] 不良贷款环比上升11个基点，主要是由于洛杉矶一笔低于1500万美元的CCFG前期开发贷款所致。借款人正在寻求恢复贷款状态；否则，公司可能会进行贷款出售或取消抵押品赎回权。

[vi] 解决德克萨斯州大型商业及工业（C&I）信贷问题取决于两项资产出售的完成。第一笔交易需要获得与员工和设备转移相关的海岸警卫队批准。管理层预计这两笔交易都将在第四季度完成，但具体时间仍存在不确定性。

[vi] 分析师问答环节点评

• [vi] 净息差敏感性：管理层表示，9月份的加息仅带来了部分季度的收益。只要存款成本保持受控，进一步加息可能会通过70亿美元的浮动利率贷款组合以及固定利率到期资产的重新定价来支撑净息差。
• [vi] 贷款增长：高管们指出了公司业务覆盖区域内的重大机会。CCFG还报告称，在经历缓慢的第三季度后，现有客户的活动有所恢复，不过高额还款可能会持续。
• [vi] 信贷解决：从德克萨斯州C&I资产出售中预计获得的1.01亿至1.02亿美元收益超过了9100万美元的账面余额。管理层预计，如果交易按计划完成，拨备覆盖率将发生实质性改善。
• [vi] 资本回报：该公司打算继续回购股票，包括在Mountain Commerce交易中发行的股票。管理层表明，预计回购将持续到第四季度之后，而不是随着今年结束而终止。
• [vi] 并购：Home BancShares仍对符合其信贷、定价和股东回报标准的收购保持兴趣。管理层表示，在退出一个机会并与另一个潜在交易失去联系后，目前似乎没有即将发生的交易。
• [vi] 流动性：该公司报告称拥有49亿美元的联邦住房贷款银行融资金额、充裕的现金头寸以及来自其证券组合的每月约3000万美元现金流。因此，管理层对其资助潜在贷款增长的能力表示并不担忧。

[vi] 业绩电话会议完整文本

• [vi] * *

[vi] 完整财报电话会议逐字稿

[vi] 管理层陈述

[vi] Operator

[vi] \[Audio Gap\] 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 2026. \[Operator Instructions\] And this conference is being recorded.

[vi] It is now my pleasure to turn the call over to Donna Townsell, Director of Investor Relations. Donna, please go ahead.

[vi] Donna Townsell

[vi] 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; Chris Poulton, President of CCFG; and Scott Walter of Shore Premier Finance.

[vi] The story of the quarter was stability, strength and shareholder value creation. All banks are not created equal in management, profitability, margin and among many other categories and we certainly work hard at Home to set ourselves apart. We are proud to announce another record-setting quarter here at Home, and our team is prepared to provide more details about our performance.

[vi] Our first speaker today will be our Chairman, John Allison.

[vi] John Allison

[vi] Welcome, everyone. It's another strong quarter for Home BancShares led by record earnings of $129.1 million or $0.65 a share. For the first 9 months of '26, we remain on the strong path towards my goal or our goal of $500 million orders, sound better to say $0.5 billion. I never thought I'd be saying that but we're on a path for that. For the first 9 months of '26, we produced $380 million in adjusted earnings, keeping us on a strong path towards our goal of $500 million. Really, the real difference between the earnings and the adjusted earnings is primarily non-commerce the merger expense of $12 million to $13 million.

[vi] During the quarter, we paid our new dividend of $0.23 a share. I know you are all happy with that. I would think that's a 9.5% increase and my wife is extremely happy, as you all remember, she's a dividend hop for everyone. Increase from the last quarter, we repurchased 1.3 million shares for approximately $39.3 million created a shareholder buyback yield of $0.69 in the third quarter. Second quarter, we created a shareholder buyback yield of $0.77 in the first quarter of \[indiscernible\]. So total through 3 quarters additional shareholder return of 1.71%.

[vi] For the 3 quarters, we repurchased 3.3 million shares, approximately $94.4 million, with plans to continue stock repurchases during the fourth quarter, coupled that with a new dividend yield of approximately 3%. It is our goal to return as much capital to our shareholders as prudent to do so. I understand the importance of shareholders because they are the ones we work for. Being a founder, Chairman, owner operator and largest individual shareholder, I understand the alignment firsthand, management is invested in alongside our shareholders and we remain committed to sharing the rewards of the company performance with them. That more than confirms the fashion and drive to share the awards with all our shareholders.

[vi] Home's earnings power and balance sheet flexibility was shinning brightly in the third quarter with record profitability, strong stock repurchases, margin expansion, increased dividend consisted ROI, a strong PPNR, tangible book per share growth, low efficiency ratio. It will be interesting to see once we -- as time goes on this quarter, how we compare to the rest of the industry. We're proud of the fact that we've been named by many companies for outstanding peer-leading performance awards year in and year out and as we forge forward on our goal of $0.5 billion in profit.

[vi] As I said in the second quarter, Mountain Commerce transaction is performing very well and making a continued contribution to the total company. Based on what I've seen, I do that transaction again. We expect additional benefits as we complete the back-office integration during the fourth quarter. Congratulations on a good job to our new Tennessee partners, are proud of the work you're doing.

[vi] Again, the big surprise like the second quarter was the third quarter average loan growth balance is outstanding. What appeared to be a large down quarter like last quarter, turned out to be only down $28 million on average balances from last quarter. That's a result of keeping many of the loans and payoffs coming late \[indiscernible\]. Our funding strategy also continued to benefit earnings. Borrowing expenses during the quarter declined by $2.3 million, decrease in interest expense on deposits was $1.2 million of that, a decrease of $1.1 million in interest expense on federal home loan bonds and other borrowings as we reduced total borrowings by $200 million during the quarter.

[vi] Many banks \[indiscernible\] their ALCI pain is over because they restructured the balance sheet. It took hundreds of millions of dollars in some cases, billions dollars of losses, attempting to repair the damage inflicted by their decisions. The store appears to be repeating itself again as rates continue to climb. Home \[indiscernible\] taking excessive duration risk, maintain balance sheet flexibility and protected shareholder capital. Our disciplined decision not to build a large, long-duration securities portfolio has proven to be the right one.

[vi] Higher rates still affected our AOCI during the quarter, but impact remain manageable relative to our size. If you remember, we've not bought securities in years to speak of. A key point that differentiates Home from most banks as evidenced by the increase in margin for the quarter is the balance sheet is structured to increase the margin as rates increase. Donna said all banks are not created equally, and they're not created equally. But when rates go up, stocks -- bank stocks usually go down when it's actually positive for Home \[indiscernible\], as you can see for the quarter.

[vi] We built this balance sheet to perform through different economic and interest rate environments, and that discipline continues to benefit our shareholders through the \[indiscernible\]. Those pushing public banks to buy low-rate long-term securities several years ago are now the ones pushing for growth, grow, grow, grow. Growth at an expense. They said, Johnny, I open up that loan machine. I really bet that few, if any of them have ever run a bank. Being one of the most profitable and safest banks in the country year in and year out has worked for our shareholders. We will stay the course as we have in the past. I'd rather be known as one of the safest and most profitable banks in the United States than \[indiscernible\] of problems, losing millions of hard-earned money of the shareholders.

[vi] We will grow when opportunities meet our standards for credit quality, pricing and shareholder returns. We will stay the course and you can bet on that. Regarding our large nonperforming loan we've been discussing for several quarters or our long-standing guidance has been, we have no additional loss in the large Texas C&I relationship. And in fact, we expect recoveries over time. There's been a lot of positive movement in this credit over the last 90 days. 80% of the assets of the company are under a signed asset purchase agreement that we expect to close to borrow next week, 3 weeks from now, but soon, and the remaining 20% I have a preliminary agreement with only one contingency that will be resolved once the first part is sold and completed. So when the 80% sold, we understand the other 20% will come right after that.

[vi] We expect these transactions to close this quarter. The scheduled proceeds from these 2 sales transactions would result in a recovery over the current \[indiscernible\] balance. Remaining balances owed and the proceeds would be between the personal guarantors and Home BancShares.

[vi] Profitability, as I said earlier, for our company, we had a 166 PPNR and I think Stephen is going to cover most of those. We came out with a pretty good efficiency ratio of 40.84% for the quarter and 211 ROA, and that's without the commerce conversion. Our nonperforming ticked up a little bit, but that's not a concern to us at that -- I think for us, had a little one that popped up $11 million to $12 million, and he's around to discuss it if everybody wants to ask a question.

[vi] I'd like to say a special thanks to our team for continuing to produce better numbers almost every quarter in our 26-year life. We're armed to be a continuing top performer year in and year out.

[vi] Donna, I think that's all the news I have because all the news I have was good, and I have no bad news.

[vi] Donna Townsell

[vi] Okay. Well, no bad news is good news. So thank you, Johnny. Our next report comes from Stephen Tipton.

[vi] John Tipton

[vi] Thanks, Donna. As Johnny mentioned, the third quarter of 2026 was another strong performance for Home and Centennial Bank. Adjusted earnings were $129.1 million, an increase of $1 million from last quarter. Performance metrics are again top tier with a 2.11% return on assets at a 16.54% return on tangible common equity, which is on a TCE ratio of 13.48%. The reported net interest margin was 4.53%, an increase of 2 basis points from Q2. The core margin, excluding event income, was 4.50%, up 3 basis points from the prior quarter, and up 4 basis points year-over-year. The overall loan yield, excluding event income, averaged 6.91% and exited the quarter at 6.90% while interest-bearing deposit costs averaged 2.37%. Total deposit costs were 1.83% in Q3 and exited the quarter at 1.81%.

[vi] Switching to the balance sheet. Legacy deposit balances declined in Q3 by $358 million as a result of a decline in municipal deposit balances, quarterly tax payments in September and the reduction of wholesale deposits from the MCB acquisition. We continue to focus on core deposit relationships in this extremely competitive rate environment. Noninterest-bearing balances now stand at $4.21 billion and account for over 22% of total deposits. Loan production softened slightly in the third quarter to $850 million, reflective of our conservative approach to underwriting and disciplined in pricing.

[vi] Tennessee contributed nicely this quarter with almost $70 million in production. Payoff volume that we've discussed in the past materialized in Q3 with payoffs at $1.01 billion. Our pipeline for unfunded commitments remained strong at over $3.8 billion. As Johnny mentioned, tangible book value per share grew $0.03 to $15.35 despite a $65 million increase in AOCI and the share repurchases, a testament to the earnings power and stability of our company.

[vi] Capital levels remain extremely strong with common equity Tier 1 capital ending at 16.7% and total risk-based capital at 19.4% and reserve to total loans of 1.93%. We believe our balance sheet is well positioned to benefit from the recent move in rates and from what looks to be additional rate hikes in the future. We have approximately $1.2 billion in fixed rate loans maturing over the next 12 months at a weighted average rate of 5.72%, along with $7 billion in variable rate loans. Asset liability modeling shows a nearly 6% increase in net interest income in an up 100 basis point scenario. We are proud of the third quarter results here at Home and look forward to another record year in round out in 2026.

[vi] With that said, I'll turn it back to you, Donna.

[vi] Donna Townsell

[vi] Thank you, Stephen. And Kevin Hester will wrap up our prepared remarks with an update on lending.

[vi] Kevin Hester

[vi] Thanks, Donna. Loan balances ended the quarter much better than we anticipated when we visited 90 days ago. We had some payoffs late in the quarter, but also held on to a few that we expected to pay off. Johnny says, I'm not very good at forecasting loan balances. So I've got that going for me. I'm not sure if it's correct or not, but for what it's worth, this quarter looks better than the last. We continue to see sizable loan opportunities throughout our footprint, and we're encouraged by the effort that's given by our lenders.

[vi] Johnny commented on the large nonaccrual. And while we hope it will be a third quarter resolution, we're very encouraged by the progress made recently, and we believe that the proposed asset sales validate our underwriting and management of the credit. Overall asset quality remains solid. And while nonperforming loans increased 11 basis points quarter-over-quarter. That increase is due to one CCFG loan that we expect to be resolved in this quarter and Chris is on the call to provide more color on that. We remain focused on asset quality, profitability and growth in that order.

[vi] One thing I can confidently tell you for my 65 quarters leading the lending function of this company is that this is the only formula for long-term success in this industry. Donna, I'll give it back to you.

[vi] Donna Townsell

[vi] Thank you, Kevin. Well, Johnny, before we go to Q&A, do you have any additional comments?

[vi] John Allison

[vi] Well, I think Stephen kind of hit that. Think about the quarter, we've got an ALCI mark of $65 million. We paid our new dividend, increased dividend, and we bought back 1.3 million shares, and we still grew tangible book value slightly. Within loads \[indiscernible\] go down, banks sell on tangible book, and we still increased tangible book value per share. I'm very proud of that. And that -- what that says is that Home has amazing earnings power. That's what 211 ROA will do for you.

[vi] I really just want to thank the entire team for continuing to deliver outstanding results nearly every year of our 26-year history. Home BancShares has built a consistent record of top-performing banks, and the performance reflects the discipline and dedication of our employees across the company. This was another strong quarter for Home BancShares. We produced record earning meaningful capital to shareholders, maintain our balance sheet discipline, made encouraging progress on the large credit we've discussed. We remain focused on finishing the year out strong and delivering long-term value for our shareholders.

[vi] Past that, I think that's enough for me, Donna.

[vi] Donna Townsell

[vi] Okay. That sounds good. We will turn it over to Q&A.

[vi] Operator

[vi] \[Operator Instructions\] Your first question is from the line of Steve Scouten from Piper Sandler.

[vi] John Tipton

[vi] He was going to be in kind of a rural area today. He may not be much in connection. Let's move on. If he comes back, we'll hand it, how about that. Let's move on.

[vi] Operator

[vi] Your next question is from the line of Woody Lay from KBW.

[vi] 分析师问答

[vi] Wood Lay

[vi] I wanted to start on the net interest margin and higher rates would seem to be a benefit for you all. I was just curious with the hike in September, how you've seen the NIM progress from there? And what incremental rate hikes could mean for the NIM going forward?

[vi] John Tipton

[vi] Woody, this is Stephen. Yes. I guess first part of your question, the core NIM, excluding event income, averaged 4.5% for the quarter, it was 455 in September. Obviously, the rate hike came half way through the month there. So I think there may be a little bit of incremental benefit for us. And then just based on our \[indiscernible\] modeling, like I said in the comments, we show, I think, it's 5.6% increase to NII in an up 100 basis point scenario. So that's kind of what the way we think about it today. I mean, we're certainly in a competitive environment on loans and deposits. But if we're able to -- if we're able to control that on the deposit side and get some lift out of these maturing loans over the next 12 months, I think there's a chance that it could potentially move a little higher from here.

[vi] Wood Lay

[vi] Got it. That's helpful. And then I was curious on the growth front, based on your opening comments, it seems like you're a little bit more optimistic on growth in the fourth quarter. And I was curious, is that a reflection of competition slowing down? Is pricing becoming more rational? I guess, just curious on your thoughts on maybe what's driving that clear path to growth?

[vi] John Allison

[vi] This is John. I'll tell you a little and give it to Kevin after that. We had some -- we had -- we lost about 400 -- about $5.5 billion of loans due to some unusual circumstances that we have that hit the company over the past 18 months. They're gone now, those unusual circumstances are gone. But we're back on the loan -- we're back on the loan lagging today. We've got lots of good stuff working. And I think you'll see you'll be pleased to see the loan growth out of Home BancShares. I'll let Kevin speak to that. He was referring and then we'll let Chris comment on it also.

[vi] Kevin Hester

[vi] Yes. Well, I don't know that it -- it may be saying that people are coming back to their senses with the 25 basis points that already occurred going up and the thought that there's probably 75 more coming that may have -- that may be playing into where we're at. We're not 100% sure of that at this point, but there's certainly -- there's sort of some good opportunities that we're looking at for this quarter, good sizable opportunities, and it's across the footprint. It's not all in one place. So that -- we may look back at 90 days and say that, yes, that's part of it. But I'm not 100% sure that's the case yet.

[vi] John Allison

[vi] One more comment from me. We're seeing a lot of opportunities out there right now that really look good. I think you'll see come through \[indiscernible\] Chris, you want to comment on CCFG about what you're seeing?

[vi] Christopher Poulton

[vi] Sure. Thanks. Well, it's a little slow new origination wise for us in the third quarter. I mean, I think we closed the towards the end of the quarter other than 2 loans had in closing, we probably had 0 in the pipeline, of course, new term sheet. But I view that as a good thing. Ultimately, the market was in transition and market's got to catch up with us sometimes a little bit on fuel and sour about things. But really, since the start of this quarter, I think people are starting to accept that way things are going to look going forward rate wise and such. And so we've seen a lot of pickup in the last couple of weeks, a lot of our existing clients, a lot of deals coming back our way that maybe went away for a little while, et cetera.

[vi] But I think what we're hearing in general is it's pretty uncertain out there and uncertain times, our certainty is a virtue. So like what we're seeing, pipeline is filling back up and hopefully, it will continue that way, but I feel good about things. It was well bleak in the third quarter.

[vi] Wood Lay

[vi] And then I guess, actually, just one quick follow-up. I mean it sounds like pricing and spreads are a little bit incrementally positive. Just any sense on structurally, I think last quarter, you called out you're seeing some irrational structure in the marketplace, which was calling you to pull back. Are you still seeing any of that over the past quarter?

[vi] Kevin Hester

[vi] Yes, I don't think that that's necessarily changed. I could I could believe that maybe pricing discipline is coming back a little bit more than I do structure discipline at this point.

[vi] Operator

[vi] Your next question is from the line of John Arfstrom from RBC Capital Markets.

[vi] Jon Arfstrom

[vi] Kevin, just one quick one on loan growth. You talked a little bit about late payoffs in the quarter. Can you help us kind of understand the size of that?

[vi] Kevin Hester

[vi] It was -- I would say the latter part of the quarter was $300 million or $400 million. And it's -- other than one that Johnny was talking about, the majority of that was just projects, we do a lot of construction and projects reached the time where it's -- whether they either sell or they move to permanent financing, and that's what we were seeing in the third quarter. There was a lot of projects that needed to move on because it was time.

[vi] John Allison

[vi] One of those was -- one of them that had unusual circumstances -- great credit, $170 million credit that we lost over unusual circumstances. We're not -- hopefully, that's not repeatable.

[vi] Jon Arfstrom

[vi] Yes. Okay. I know we tease you guys on the loan growth projections, but it sounds pretty good from my point of view.

[vi] John Allison

[vi] It's much better. It's much better. I'm telling you, we're looking at some good opportunities.

[vi] Jon Arfstrom

[vi] Yes. Okay. Just 2 quick ones on credit. Chris, anything to note on the CFG nonperformance. It sounds like that's going to be resolved. But anything on that? And then can you guys remind us the size of the Texas resolutions and what kind of a step down we could see in the Texas nonaccruals?

[vi] John Allison

[vi] Chris, go ahead and take the first part, and I'll take the second.

[vi] Christopher Poulton

[vi] Okay. Yes, the one loan that popped up is a -- it's a little less than $15 million a predevelopment loan to the previous customer, and they had developed and done fine on that. So we did a predevelopment loan form a couple of years ago. It's an LA loan. It's entitled for residential, which LA needs. It was adjacent to the Eaton Fire area, so kind of Northeast. So they had asked for some accommodation on that right after the fires. We gave them that -- gave them a little extension for that, but we've kind of gotten to the end of that. And we really needed to -- we really need to exercise our right under loan agreement to try to get resolution there. So we started foreclosure action at that maturity. Since that time, we've signed an LOI for the loan sale. We put that a little bit on hold right now. We are continuing to work that. But our borrower has been in contact with us throughout. They've approached us in the last again, in the last week or so with what they would need to do to reinstate that loan.

[vi] And so we're going to give them kind of another 5 days or so here to come to us. We gave them a plan for reinstatement in the first stage of that over the next -- over the next few days, and then there's about a 45-day period after that then to fully do that. That's our preference. Our preference is to work with our borrowers when they can come to the table. So we're going to give them an opportunity. We're going to try to give them an opportunity to do that. Hopefully, that's the way that works. If it doesn't, we'll go forward with the LOI or we'll go forward with foreclosure and sell the property. But our hope right now is the borrower will be able to do what they've said they can do.

[vi] John Allison

[vi] Okay. And on the large C&I credit. You got more questions on that one, John or you good with...

[vi] Jon Arfstrom

[vi] No. \[indiscernible\]

[vi] John Allison

[vi] Okay on the large C&I credit, it's a 2-piece sale. Sale #1 is the marine equipment, floating stock that brought 92% of appraisal. That's the bid. It's being purchased by New York Stock Exchange Company. The purchase agreement is signed. We're waiting on approval from the Coast Guard that the employees have transferred over and the equipment will transfer over and waiting on approval from the Coast Guard. That should bring in the $85 million range for us. The second part of that is the -- basically the fuel tonnage. And there is a $17.5 million bid on those. We should net about $16.5 million out of that. So that brings us in $101 million, $102 million once that closes, the book balance, not the actual balance, but the book balance we have is $91 million. So you'll see about a $10 million recovery or the loan loss or whatever when that closes. And the balance is -- has been default interest that we have not recognized $0.01 of. So it will be a -- between the personal guarantors Home Bancshares as how we resolve whatever balance is out. But you should see recoveries there.

[vi] Once we got a hold of the credit, we really underwrote the credit and I have to congratulate our people on an outstanding job to get 92% of their prices. So it -- I would have told you to be going by now, but sometime in the next couple of weeks, I would expect it to happen. We'll issue an 8-K when it happens. And we're buying a bottle -- Stephen's buying a bottle of a 25-year-old whistle pig and Donna is having a tent party in our parking lot. So we're going to be drinking whistle pig and have the tent party out front here at -- when we get a final resolution. I think it's close, close enough, it's about a little whiskey.

[vi] Jon Arfstrom

[vi] I wish I could get an invitation, but...

[vi] John Allison

[vi] Expenses might be up a little bit in Q4.

[vi] Jon Arfstrom

[vi] Well, congratulations on that long time coming, but that will be a nice step down. .

[vi] Operator

[vi] Your next question comes from the line of Brett Rabatin from StoneX Group.

[vi] Brett Rabatin

[vi] Johnny, I wanted to ask -- I wanted to ask, I know you were looking at a potential few transactions and I kind of heard that a lot of folks are saying, well, the AOCI marks have risen so much that that's kind of changed the math for the short term, and so maybe M&A is tougher right now. But just wanted to hear if any of those -- any of those 3 were looking like they might still be possible and just what you're seeing out there? And then I get a lot of feedback from people saying, hey, Johnny, if Johnny wants a really good bank that's going to add some good assets, you might need to defend his triple accretion laws just a little bit. So I was just hoping to get some color on those things.

[vi] John Allison

[vi] Well, we haven't broken yet, right? One of these deals were just -- was about too much dilutive, 30 minutes or a couple of coffee dilutive. They've gone radio silent on me. I don't know what happened. I don't know what happen with that deal. I don't know. It was something that had a high level of interest to us, and it's just gone quite. So I don't know where the banker is coming. I assume the \[indiscernible\] will be back to us at some point in time. But that one just went quite. One of them we pulled out on -- was 2 deals, one we pulled out on, and the bankers going quite \[indiscernible\]. It's something that I think would be good for them and good for us. I think it will be a last transaction for Home to do. And we spend a lot of time modeling it and playing with it, and we're willing to bid up for it. So as it turned out, I called a banker yesterday and told him to call me, and I hadn't heard anything from him. So its kind of disappointing. I don't know if they use me as a stocking horse or what they did.

[vi] But anyway, we'd like to have -- we'd like to put a transact together, and we're ready to do that. So we'll be working on -- we're always working on it. There's a lot of them out there right now, opportunities to do those transactions. And our currency still is holding up fairly well. We got mock down a little bit here. \[indiscernible\] all the banks got \[indiscernible\] down recently. But I think we'll be back and we'll be able to do trades here \[indiscernible\]. A little disappointing. I don't -- that's a little disappointing that we didn't -- we hadn't brought that one closer to fruition. But if it doesn't work, it doesn't work, there's more out there. So we'll move on.

[vi] I wish I told you we -- \[indiscernible\] and we got inside the loan book, we decided that one for us. So it was a tough deal to do anyway. And once we got in the loan book, we came out of it.

[vi] Brett Rabatin

[vi] Okay. And second question is what I'm gathering from the call is, it sounds like there's some \[indiscernible\] optimism for loan growth and production. But I didn't quite get it. It sounds like you also think that maybe the payoff challenge that you've had in the past 2 quarters. Is that dwindling down? And then I was just also kind of curious as it relates to that, if Shore Premier were still seeing demand or how that business would go in with higher diesel prices and whatnot?

[vi] Kevin Hester

[vi] Brett, this is Kevin. I'll take the payout. There's still it could be close to last quarter as far as the payoff number goes. We'll see how that plays out. I mean you had some rollover into this quarter that we thought we're going to have in the last quarter. So that always happens when you're looking at folks that are selling the properties or going and get permanent financing, it's hard to pinpoint exactly when that's going to happen. So -- but there's still a little bit of -- however, from my aspect, I'm seeing better opportunities than I've seen in a while. So I think we can overcome those payoffs and I'm not sure -- they have to come down substantially because we've taken so many so far this year. So hopefully, we won't continue to see the big bits in the payoff.

[vi] Chris, you got anything big payoffs coming?

[vi] Christopher Poulton

[vi] I wouldn't say we have elevated. I mean, we always have payoffs. I don't get payoffs, I get nervous.

[vi] John Allison

[vi] I said I'm really for positive loan \[indiscernible\], what I'm ready for.

[vi] Operator

[vi] Your next question comes from the line of Matt Olney from Stephens.

[vi] Matt Olney

[vi] Just a few follow-ups here on the margin. deposit competition. Great to see deposit costs move lower in the third quarter, especially with some of your peers moving higher. Curious just about depositor behavior following the Fed hike a few weeks ago, kind of what you're seeing more recently? And if the pay continues to hike kind of what your expectations are on depositor behavior?

[vi] John Tipton

[vi] Matt, this is Stephen. First part, competition is fierce in all of our markets, Texas, Arkansas, Alabama, Florida, you've got different competitors in a lot of those markets, but you're seeing -- I got a text earlier this week in one of markets, somebody was advertising 4.5% on a 12 month \[indiscernible\]. So you'll see some of that stuff advertised. We've taken the same approach that we always have and negotiating one-off and settling the strength and stability of the company and we'll get our shots along the way there.

[vi] On depositor behavior from an interest rate standpoint, I don't know if I -- maybe a little more aggressive on this last rate hike in terms of expectations of what we pass along. We model, I think, 40% beta on checking and savings accounts and \[indiscernible\] that's what we're working with our group on trying to kind of achieve overall -- some of the improvement in deposit rates for the quarter was kind of some of the outflows that we had on the municipal side, most of those are tied to T bills and index. So that's some of our higher cost funding that drew down some in the quarter.

[vi] Matt Olney

[vi] Okay. I appreciate that, Tipton. And then I guess another follow-up, Stephen, you mentioned the variable rate loans around $7 billion. I just want to make sure that's all-in number at CCFG and the Community Bank? And just remind me, within that $7 billion kind of the repricing timing as far as how quickly and how often those reprice?

[vi] John Tipton

[vi] Sure. Yes. So that does include CCFG. That's what is set to or can adjust in Q3 or Q4. So the longer-term stuff, I'll call adjustable rate that we have out there. But what we consider variable inside of, call it, 6 months or less. And some of that's daily. Some of it's monthly, some of it is quarterly. 3.5 -- about half of the $7 million, $3.5 billion is tied to Wall Street Journal Prime and then $3.3 billion or so is tied to SOFR. And then we've got some other entities for the balance of it.

[vi] Operator

[vi] Your next question is from the line of Michael Rose from Raymond James.

[vi] Michael Rose

[vi] Just wanted to go back to Mountain Commerce. I think the conversion systems conversion is coming up here next month. Any changes to cost savings expectations or any of the deal-related math, Stephen?

[vi] John Tipton

[vi] No. No. We're set for November 6 of the weekend of. We've already probably achieved a little of the cost savings along the way since \[indiscernible\], but come November 6 or the week after, we'll begin to see the realization of some of those from -- be it staffing or DP and other types of opportunities there. So no change and still estimate was, I think, a little over $5 million on an annualized basis is what we had targeted.

[vi] Michael Rose

[vi] Perfect. I appreciate that. Maybe separately, Johnny, you I think previously talked about repurchasing all the shares that you issued related to Mountain Commerce. Is that kind of still the plan? You definitely sounded a little bit more optimistic on buybacks, particularly given the selloff we generally had in bank stocks since the middle of August.

[vi] John Allison

[vi] Yes, that's the plan. We're in about, what, 3.3 million so far, and we put about just short of $6 million.So I think in that...

[vi] John Tipton

[vi] About 400,000 shares quarter-to-date so far.

[vi] John Allison

[vi] Yes. Quarter-to-date, we bought 400 million. So that's 3.7 million. So we're still in there. And hopefully, we'll pick up 1 million or so this quarter. So we just keep on -- maybe we'll quite get it all done maybe by the end of the year, but maybe the first -- by the first half of next year, we'll have it all \[indiscernible\].

[vi] Do you think the shareholder yield is important, Michael?

[vi] Michael Rose

[vi] Do I? Yes. I mean I think you guys have a lot of capital and deploying that capital through dividend buybacks and opportunistic M&A, I think, is what we all want to hear and see. You guys do what you've done historically. So keep it up.

[vi] Maybe one last just one for me on -- just on the environment. Any areas in credit that are kind of peaking your interest at this point. We've heard some scuttle around some of the restaurant groups and maybe some leisure and hospitality. Just anything you're watching a little bit more closely here.

[vi] John Allison

[vi] I don't -- we don't -- not really. We don't -- I don't see any -- if you're looking for a segment or a problem somewhere out there, I don't know if there's any widespread problems, some of the Texas credits created that we've been spent the last -- the \[indiscernible\]. We've been busy cleaning up Texas stuff in 3 years. And all we got left maybe is a few hotels that give us a little problem. But overall, asset quality other than we don't have any problems.

[vi] We have these asset quality meetings in Texas, it takes 2 hours and Florida takes 10 minutes and Arkansas takes 10 minutes, and you just don't have any problems in those markets. So anyway, we're continuing to work on those and -- but I don't see any segments anywhere. I don't -- we resolved this -- our big credit in Texas, which we think will resolve soon. And our nonperforming reserve nonperformer jumped over 300%. So I think you can expect that coming pretty quick. So asset quality overall pretty good.

[vi] Michael Rose

[vi] All right. That's great to hear. I'll step back and thinking of Tracy today. Sorry for you loss, guys. I think we're all in this \[indiscernible\]. .

[vi] Operator

[vi] Your next question is from the line of Dave Rochester from Cantor.

[vi] David Rochester

[vi] Back on the deposit discussion. Given that the incremental aggressiveness you guys had mentioned on the deposit front, how are you guys thinking about a return to deposit growth in 4Q? Are you confident in that? And do you think you can fund the loan growth you're expecting with deposit growth next quarter?

[vi] John Tipton

[vi] Dave, it's Stephen. It certainly be the goal. We're talked about the competitive environment, some seasonality in the last quarter, we would expect to see some of the municipal balances return there. We're talking at loan committees constantly about opportunities to get deposits with loan opportunities that come across in order to help fund that. Separate and apart from that, I mean, we've got $4.9 billion in capacity with the Federal Home Loan Bank. We've got a good cash position today. We've got a securities portfolio that comes off about $30 million a month. So not concerned from a liquidity standpoint. I think historically, the approach has been to use some of those avenues and take our time and ticker spots as opposed to being out here to having run \[indiscernible\] to raise funding.

[vi] David Rochester

[vi] I appreciate that. And then can you just give an update on where the spot price for deposits is at quarter end and where you guys are seeing new money post the hike?

[vi] John Tipton

[vi] Yes. So total deposit cost in -- the average $183 for the quarter, $181 for September. I see our CD and money market negotiations every day. Our folks are doing a good job. We may have to pay 4% here or there with the customer just because the bank down the street is running an ad at $4.20 for 7 or 8 months, but our folks do a good job in negotiating down into the low and mid 3s. I guess, mid-3 is kind of we think about opportunities today.

[vi] David Rochester

[vi] And then just switching gears to the fee side of things. There was a little bit of volatility in trust fees this quarter. I was just wondering what the driver of that was? And how should we think about that line rebounding going into 4Q next year?

[vi] John Tipton

[vi] Yes. Some of it is seasonality in terms of when our annual trust fees are charged. Q3 is generally a little bit of a light quarter there for trust then mortgage and CCFG fee income were a little bit light this quarter as well.

[vi] David Rochester

[vi] Do you feel pretty good about that bouncing back in next quarter?

[vi] John Tipton

[vi] Yes. I mean I think if you look over the last 6 quarters, we've averaged about $50 million just shy in noninterest income, and we would expect to see just migrate that closer to that number.

[vi] John Allison

[vi] The good news is we got customers that do real business, not just transaction. The bad news is that they're making a lot of money and they pay a lot of taxes. So we get hammered on the quarter. So -- but it comes, it is coming back.

[vi] David Rochester

[vi] Good. All right. Maybe one last one on expenses. You have some good expense control this quarter, you guys showed us a good run rate to kind of finish out the year? And what are your thoughts on expense growth next year?

[vi] John Allison

[vi] \[indiscernible\] done our budget for next year yet. I guess that's coming pretty quick and Brian, you may be working on it now, right?

[vi] Brian Davis

[vi] We're kind of waiting for Mountain Commerce to get converted.

[vi] John Allison

[vi] Okay. So we don't have next year. If you got -- if I'm running, it will be less than it is this year, but -- Stephen is smiling now.

[vi] John Tipton

[vi] Yes. I mean, you've got some inflationary pressure, but we've also -- we've had some things set up throughout the year where -- whether it's physical space leases that we've been able to kind of work space down, we'll begin to see some of that benefit in Q4. Some of the lower-performing segments that we have taking a look at what opportunities may be there for cost savings. You've got the Mountain Commerce cost savings that we'll get some of in Q4. So some of that should offset just inflationary pressures this quarter and next year.

[vi] David Rochester

[vi] Okay. So maybe a flattish kind of number that making this -- the run rate this quarter, good for next quarter?

[vi] John Tipton

[vi] For Q4, that's probably fair.

[vi] Operator

[vi] Your next question comes from the line of Ed Najarian from Hovde Group.

[vi] Edward Najarian

[vi] My questions have mostly been asked and answered. Just a real quick one. How do you think about the sort of the just position, again, about around deposit pricing? On the one hand, it's great to keep deposit pricing low, creates that wide NIM and great returns and love that you're giving back tons of capital to shareholders and keep buying back stock. But do you feel like you're going to have to raise deposit rates kind of along some reasonable deposit beta with the increase in the Fed funds rate? Are you going to continue to try to really keep them restrained and not raise them much as we continue to get rate increases here? I guess -- I guess the real question is, how should we think about deposit beta with you guys around Fed funds rate increases?

[vi] John Allison

[vi] We're forced to raise rates \[indiscernible\], we will. And I don't know what we ended up. I don't remember what our deposit beta was as rates run up to the \[indiscernible\]. You remember what our cost of funds got up to 2 something, a little over 2, 2.40 something \[indiscernible\]?

[vi] John Tipton

[vi] I mean we've already passed -- when the Fed hike 25, what a month ago, we've got a product that is kind of loosely indexed to Fed funds that those customers have that expectation. We passed onto them there. We've got some negotiated products that our folks know that they've got to deal with and pass whether it's 40% of that on or 100% of the rate increase on depending on customer by customer basis. So we handle that 2 days after the Fed raised rates, and things will kind of settle in from there until the next rate hike.

[vi] Operator

[vi] Your next question comes from the line of Brian Martin from Brean Capital.

[vi] Brian Martin

[vi] Just maybe a couple of follow-ups on some items for me. Just on the credit front, outside of the Texas credit you talked about, any other expectations in terms of kind of notable progress on the other credits as you kind of go into the fourth quarter or into next year, just in general, big picture?

[vi] Kevin Hester

[vi] Brian, this is Kevin Hester. The -- I mean there's always some movement. It's kind of like with this one you hope it happens quicker than it did, but these things just take some time when they're -- when they're where they are. So that's by far the largest one we have, and we'll cut it in half. So when you get back to there, we were at a pretty low number when you take half of that out, we're at a pretty low number and it's just things that you have to kind of work through. So incremental progress, but nothing imminent.

[vi] Brian Martin

[vi] Yes. Got you. Okay. That's helpful. And then just on, with the improvement with the tax credit, just I know the provision this quarter obviously was 0 just in terms of how to think about kind of near-term provisioning or given the recoveries in the Texas cleanup, I guess any sense as we go into fourth quarter and first quarter, how to think about that provisioning line?

[vi] Kevin Hester

[vi] Steve and I are looking at each other, I think we have both have the same answer, which based on what Johnny said earlier, I think we would expect not to have any provision this quarter.

[vi] John Tipton

[vi] Brian, it's Steve. We actually -- we've already got a -- we got a decent recovery in the first week of this month from a charge-off that we had in the first quarter of this year. So we're sitting in a recovery position nicely right now, assuming we get some of the recoveries, we would expect, I think you'd see reserve coverage grow nicely and not need to provision anything.

[vi] Brian Martin

[vi] Got you. Okay. And that could bleed into early next year based on kind of the trends we're seeing? It sounds like at least lower or 0, whatever the level is, and big picture to think about the next couple of quarters?

[vi] John Allison

[vi] That's fair.

[vi] Brian Martin

[vi] Okay. And just the last couple. Steve, I think your comments on the margin, just it sounds -- given the deposit cost outlook and I don't know what the new loan yields are coming on today, but the margins more relatively stable than rising given a couple of rate hikes. Is that how to think about it at this point?

[vi] John Tipton

[vi] Yes, I think so. I mean, like I said, we exited the quarter at \[ $455 \] on a nonevent income basis. And I think if we can run in that \[indiscernible\] range, maybe a little higher, we'd be certainly pleased.

[vi] Brian Martin

[vi] Got you. Okay. And the new loan yields today are comparable to where they have been?

[vi] John Tipton

[vi] Yes. We -- the $850 in production this quarter was -- I think it's $6.95. So at the -- for most of the quarter, a little above prime.

[vi] Brian Martin

[vi] Got you. Okay. And the last couple. On the M&A side, Johnny, it sounds like certainly looking, but it doesn't feel like anything is imminent near term in terms of M&A, just kind of flat along here and look at the opportunities.

[vi] John Allison

[vi] I think that's fair. I'm looking for one, I'm ready to do it. We're ready to do it. We're ready to -- if it makes sense, we're ready to do one. So we've got some opportunities out there. The ones -- I was kind of hanging on this one because I really wanted to do that trade. And I guess it just went away. The banker never call me back to tell me where it was. So I don't know the loss is \[indiscernible\] something. Anyway, we are -- there's another one out there we'll go to work on. So see if we can put it together.

[vi] Brian Martin

[vi] Okay. And then I think you mentioned, Johnny, the buybacks, I mean, obviously, getting back to Mountain Commerce, but it sounds like your commentary was more that it continues in the fourth quarter, suggesting it may not be as interesting, I guess, or likely to continue into next year. I guess, did I hear that wrong? Or just kind of wait and see at the \[indiscernible\]?

[vi] John Allison

[vi] You heard it wrong. We've been back stock for years, and we'll continue \[indiscernible\]. Either Steve or I will get out of the market, somebody take our stock down a dollar and I say Stephen, he said, I'm already buying. I'm already in there. I'm already in there this morning. I said, okay, just keep buying. They want to take it down, just buy it.

[vi] Brian Martin

[vi] All right. I'm just making sure you were leaning towards your wife and raising the dividend more. So I appreciate all the color.

[vi] John Allison

[vi] Actually, she was just thanking me for mentioning her on the call and letting everybody know that she's supported. She wants another one \[indiscernible\], but we're going to have to wait on it.

[vi] Operator

[vi] There are no further questions at this time. We have reached the end of the Q&A session. I will now turn the call back to Mr. Allison for closing remarks.

[vi] John Allison

[vi] Thank you. Hopefully, we keep rolling the way we're rolling, we'll hit the $500 million or you all call me some time. It does -- it sound better to say $0.5 billion. What does it take buddy?

[vi] Unknown Executive

[vi] $0.5 billion.

[vi] John Allison

[vi] We started \[indiscernible\]. So then we're halfway there. Anyway, thank you all for your support. I think things have been -- we've really had a good strong year this year, and I think we're going to wrap the year up fairly strong, too. So thanks, everyone. Talk to you in 90 days.

[vi] Operator

[vi] This concludes today's call. Thank you for attending. You may now disconnect.

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