HOMB Home BancShares Inc

Home BancShares, Inc. (NYSE: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.

Highlights of the Second Quarter of 2022:

Metric	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021
Net income	$16.0 million	$64.9 million	$73.4 million	$75.0 million	$79.1 million
Net income, as adjusted (non-GAAP)(1)	$97.0 million	$61.6 million	$74.0 million	$74.3 million	$76.5 million
Total revenue (net)	$243.3 million	$161.8 million	$171.0 million	$173.8 million	$172.4 million
Income before income taxes	$19.3 million	$84.9 million	$93.9 million	$98.2 million	$104.1 million
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)	$77.9 million	$84.9 million	$93.9 million	$98.2 million	$99.4 million
PPNR, as adjusted (non-GAAP)(1)	$126.7 million	$80.4 million	$94.7 million	$96.9 million	$95.9 million
Pre-tax net income to total revenue (net)	7.92%	52.48%	54.94%	56.50%	60.42%
Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1)	52.06%	49.67%	55.40%	55.76%	58.42%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)	32.00%	52.48%	54.94%	56.50%	57.66%
P5NR, as adjusted (non-GAAP)(1)	52.06%	49.67%	55.40%	55.76%	55.66%
ROA	0.26%	1.43%	1.62%	1.68%	1.81%
ROA, as adjusted (non-GAAP)(1)	1.57%	1.36%	1.64%	1.67%	1.75%
NIM	3.64%	3.21%	3.42%	3.60%	3.61%
Purchase accounting accretion	$5.2 million	$3.1 million	$4.0 million	$4.9 million	$5.8 million
ROE	1.78%	9.58%	10.63%	10.97%	11.92%
ROE, as adjusted (non-GAAP)(1)	10.83%	9.09%	10.72%	10.87%	11.54%
ROTCE (non-GAAP)(1)	2.96%	15.03%	16.73%	17.39%	19.12%
ROTCE, as adjusted (non-GAAP)(1)	17.94%	14.26%	16.87%	17.23%	18.50%
Diluted earnings per share	$0.08	$0.40	$0.45	$0.46	$0.48
Diluted earnings per share, as adjusted	$0.47	$0.37	$0.45	$0.45	$0.46
Non-performing assets to total assets	0.25%	0.25%	0.29%	0.29%	0.35%
Common equity tier 1 capital	12.8%	14.9%	15.4%	15.2%	15.0%
Leverage	9.8%	10.8%	11.1%	11.0%	10.9%
Tier 1 capital	12.9%	15.5%	16.0%	15.8%	15.6%
Total risk-based capital	16.6%	21.6%	19.8%	19.6%	19.5%
Allowance for credit losses to total loans	2.11%	2.34%	2.41%	2.41%	2.36%

(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.

“Patience is not just the ability to wait; it’s what you do while you’re waiting. We have remained disciplined and implemented our defensive initiatives: not making low rate loans, not deploying all of our cash in low rate securities, paying off debt and managing our loan to deposit ratio, among other things. As it appears, the pendulum is about to swing back toward defensive stocks from growth stocks, and when it does, HOMB is sitting in the catbird seat,” said John Allison, Chairman.

“It was a very busy quarter, and I’m very pleased with the operating results. We are much farther ahead than I thought we would be after only one full quarter of the combined company. We expected a $100 million run rate for Happy by the second or third quarter of 2023, so this moves the ball down the field even quicker than we had hoped,” said Tracy French, Centennial Bank President and Chief Executive Officer.

Operating Highlights

Net income for the three-month period ended June 30, 2022 was $16.0 million, or $0.08 earnings per share. Net income for the six-month period ended June 30, 2022 was $80.9 million, or 0.44 earnings per share. However, when adjusting for merger related and other non-fundamental items, net income, as adjusted, (non-GAAP) was $97.0 million(1), or $0.47 earnings per share(1), and $158.6 million(1), or $0.86 earnings per share(1), for the three-month and six-month periods ended June 30, 2022, respectively.

During the second quarter of 2022, the Company completed its previously announced acquisition of Happy Bancshares, Inc. (“Happy”). As a result of the acquisition of Happy, which we completed on April 1, 2022, the Company recorded a $45.2 million provision for credit losses on loans for the CECL “double count,” an $11.4 million provision for credit losses on unfunded commitments, a $2.0 million provision for credit losses on investment securities held-to-maturity and incurred $48.7 million in merger expenses. The summation of these items reduced earnings by $107.3 million and earnings per share by $0.39 per share for the three-month period ended June 30, 2022.

Our net interest margin was 3.64% for the three-month period ended June 30, 2022 compared to 3.21% for the three-month period ended March 31, 2022. The yield on loans was 5.27% and 5.29% for the three months ended June 30, 2022 and March 31, 2022, respectively, as average loans increased from $9.94 billion to $13.84 billion. Additionally, the rate on interest bearing deposits increased to 0.31% as of June 30, 2022 from 0.19% as of March 31, 2022, as average balances increased from $10.22 billion to $13.80 billion.

During the second quarter of 2022, there was $602,000 of event interest income compared to event interest income of $1.4 million for the first quarter of 2022. The reduction in event income reduced the net interest margin by one basis point for the three-month period ended June 30, 2022.

Purchase accounting accretion on acquired loans was $5.2 million and $3.1 million and average purchase accounting loan discounts were $48.4 million and $25.4 million for the three-month periods ended June 30, 2022 and March 31, 2022, respectively. The increase in accretion income increased the net interest margin by 4 basis points for the three-month period ended June 30, 2022.

Net interest income on a fully taxable equivalent basis was $201.2 million for the three-month period ended June 30, 2022 and $132.9 million for the three-month period ended March 31, 2022. This increase in net interest income for the three-month period ended June 30, 2022 was the result of a $72.8 million increase in interest income partially offset by a $4.5 million increase in interest expense. The $72.8 million increase in interest income was primarily the result of a $52.3 million increase in loan interest income and a $15.6 million increase in investment income resulting from the acquisition of Happy during the quarter as well as the rising interest rate environment. The $4.5 million increase in interest expense was due to a $5.8 million increase in interest expense on deposits, which was partially offset by a $1.4 decrease in interest expense on subordinated debentures. The increase in interest expense on deposits is a result of the acquisition of Happy during the quarter as well as the rising rate environment. The decrease in interest expense on subordinated debentures is primarily the result of the Company paying off $300.0 million of subordinated debentures with a 5.265% rate on April 15, 2022 and issuing $300.0 million of new subordinated debt with a rate of 3.125% on January 18, 2022. In addition, the Company redeemed $78.9 million of trust preferred securities (“TRUPS”) during the quarter. The reduction in subordinated debt and the related interest expense was accretive to the net interest margin by 3 basis points.

The Company reported $44.6 million of non-interest income for the second quarter of 2022. The most important components of the second quarter non-interest income were $12.5 million from other service charges and fees, $10.1 million from service charges on deposit accounts, $6.0 million in mortgage lending income, $7.7 million from other income, $3.9 million from dividends from FHLB, FRB, FNBB and other, $4.3 million from trust fees, $1.1 million increase in cash value of life insurance, and $658,000 from insurance commissions. These amounts were partially offset by a $1.8 million loss from the fair value adjustment for marketable securities. The $3.9 million from dividends from FHLB, FRB, FNBB and other includes $1.4 million in special dividends. The $7.7 million in other income includes $2.4 million in recoveries on historic losses of loans acquired that were written off prior to acquisition.

Non-interest expense for the second quarter of 2022 was $165.5 million. The most important components of the second quarter non-interest expense were $65.8 million from salaries and employee benefits, $48.7 million in merger and acquisition expenses, $26.6 million in other expense, $14.3 million in occupancy and equipment expenses and $10.1 million in data processing expenses. Included within non-interest expense was $2.1 million in TRUPS redemption fees. For the second quarter of 2022, our efficiency ratio was 66.31%; however, our efficiency ratio, as adjusted (non-GAAP) was 46.02%(1).

Financial Condition

Total loans receivable were $13.92 billion at June 30, 2022 compared to $10.05 billion at March 31, 2022. Total deposits were $19.58 billion at June 30, 2022 compared to $14.58 billion at March 31, 2022. Total assets were $24.25 billion at June 30, 2022 compared to $18.62 billion at March 31, 2022.

During the second quarter of 2022, the Company experienced approximately $3.87 billion in loan growth. During the quarter we acquired $3.65 billion of loans, net of purchase accounting discounts, from Happy. Centennial CFG experienced $273.0 million of organic loan growth and had loans of $2.42 billion at June 30, 2022. Our legacy footprint experienced $20.1 million in organic loan growth and $74.6 million in PPP loan decline during the quarter.

Non-performing loans to total loans was 0.44% at both June 30, 2022 and March 31, 2022, respectively. Non-performing assets to total assets was 0.25% at both June 30, 2022 and March 31, 2022, respectively. Net charge-offs were $2.5 million and $1.9 million for the three months ended June 30, 2022 and March 31, 2022, respectively.

Non-performing loans at June 30, 2022 were $15.0 million, $33.3 million, $5.5 million, $813,000, $1.3 million and $4.7 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $60.6 million. Non-performing assets at June 30, 2022 were $15.0 million, $33.6 million, $5.7 million, $813,000, $1.3 million and $4.7 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $61.1 million.

The Company’s allowance for credit losses on loans was $294.3 million at June 30, 2022, or 2.11% of total loans, compared to the allowance for credit losses of $234.8 million, or 2.34% of total loans, at March 31, 2022. The increase in the allowance was primarily due to the Company recording a $16.8 million allowance on purchase credit deteriorated loans and a $45.2 million provision for credit losses on acquired loans as part of the Happy acquisition which was partially offset by $2.5 million in net charge-offs for the quarter ended June 30, 2022. The Company’s allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.12%(1) and 2.35%(1) at June 30, 2022 and March 31, 2022, respectively. As of June 30, 2022 and March 31, 2022, the Company’s allowance for credit losses on loans was 485.57% and 525.50% of its total non-performing loans, respectively.

Stockholders’ equity was $3.50 billion at June 30, 2022 compared to $2.69 billion at March 31, 2022, an increase of approximately $811.9 million. The increase in stockholders’ equity is primarily associated with the $961.3 million of common stock, net of issuance costs, issued to the Happy shareholders which was partially offset by a $111.3 million increase in accumulated other comprehensive loss, net stock repurchases and share-based compensation activity of $20.1 million and an $18.0 million decrease in retained earnings. Book value per common share was $17.04 at June 30, 2022 compared to $16.41 at March 31, 2022. Tangible book value per common share (non-GAAP) was $9.92(1) at June 30, 2022 compared to $10.32(1) at March 31, 2022.

(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.

Branches

The Company currently has 76 branches in Arkansas, 78 branches in Florida, 62 branches in Texas, 5 branches in Alabama and one branch in New York City.

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, July 21, 2022. We strongly encourage all participants to pre-register for the conference call webcast or the live call using one of the following links. First, participants can pre-register for the conference call webcast using the following link: https://events.q4inc.com/attendee/373803075. Participants who pre-register will be given a unique webcast link to gain immediate access to the conference call webcast. Second, participants can pre-register for the live call using the following link: https://ige.netroadshow.com/registration/q4inc/11147/home-bancshares-inc-2nd-quarter-earnings-call/. Participants who pre-register will be given the phone number and unique access codes to gain immediate access to the live call. Participants may pre-register now, or at any time prior to the call, and will immediately receive simple instructions via email. The Home BancShares conference call will also be automatically scheduled as an event in your Outlook calendar.

Those without internet access or unable to pre-register may dial in and listen to the live call by calling 1-844-200-6205, Passcode: 478807. A replay of the call will be available by calling 1-866-813-9403, Passcode: 165968, which will be available until July 28, 2022, at 10:59 p.m. CT (11:59 p.m. ET). Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com.

About Home BancShares

Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, Texas, South Alabama and New York City. The Company’s common stock is traded through the New York Stock Exchange under the symbol “HOMB.” The Company was founded in 1998. Visit www.homebancshares.com or www.my100bank.com for more information.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures--including net income (earnings), as adjusted; pre-tax, pre-provision, net income (PPNR); pre-tax, pre-provision, profit percentage; pre-tax, pre-provision, profit percentage, as adjusted; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets excluding intangible amortization; return on average assets, as adjusted, excluding intangible amortization; return on average assets excluding excess liquidity; return on average assets, as adjusted, excluding excess liquidity; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity, as adjusted; return on average tangible common equity excluding intangible amortization; return on average tangible common equity, as adjusted, excluding intangible amortization; efficiency ratio, as adjusted; allowance for credit losses to total loans, excluding PPP loans; tangible book value per common share and tangible common equity to tangible assets--to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions (including the effect of the PPP loans) that management believes are not indicative of the Company’s primary business operating results. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

General

This release may contain forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future events, performance or results. When we use words like “may,” “plan,” “propose,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,” “would,” and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors include, but are not limited to, the following: economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment; disruptions, uncertainties and related effects on our business and operations as a result of the ongoing coronavirus (COVID-19) pandemic and measures that have been or may be implemented or imposed in response to the pandemic, including the impact on, among other things, credit quality and liquidity; the risk that the benefits from the acquisition of Happy may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, ongoing or future effects of the COVID-19 pandemic, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Home and Happy operate; the ability to promptly and effectively integrate the businesses of Home and Happy; the reaction to the transaction of the companies’ customers, employees and counterparties; diversion of management time on acquisition-related issues; the effect of any future mergers, acquisitions or other transactions to which we or our bank subsidiary may from time to time be a party, including as a result of one or more of the factors described above as they would relate to such transaction; the ability to identify, enter into and/or close additional acquisitions; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations, including those in response to the COVID-19 pandemic; technological changes and cybersecurity risks; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; changes in the assumptions used in making the forward-looking statements; and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 24, 2022.

FOR MORE INFORMATION CONTACT:Donna TownsellDirector of Investor RelationsHome BancShares, Inc.(501) 328-4625

Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)
(In thousands)		Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021
ASSETS
Cash and due from banks		$	287,451			$	173,134			$	119,908			$	146,378			$	182,226
Interest-bearing deposits with other banks			2,528,925				3,446,324				3,530,407				3,133,878				2,759,027
Cash and cash equivalents			2,816,376				3,619,458				3,650,315				3,280,256				2,941,253
Investment securities - available-for sale, net of allowance for credit losses			3,791,509				2,957,322				3,119,807				3,150,608				3,053,712
Investment securities - held-to-maturity, net of allowance for credit losses			1,366,781				499,265				-				-				-
Total investment securities			5,158,290				3,456,587				3,119,807				3,150,608				3,053,712
Loans receivable			13,923,873				10,052,714				9,836,089				9,901,100				10,199,175
Allowance for credit losses			(294,267	)			(234,768	)			(236,714	)			(238,673	)			(240,451	)
Loans receivable, net			13,629,606				9,817,946				9,599,375				9,662,427				9,958,724
Bank premises and equipment, net			415,056				274,503				275,760				276,972				278,502
Foreclosed assets held for sale			373				1,144				1,630				1,171				1,969
Cash value of life insurance			211,811				105,623				105,135				104,638				104,132
Accrued interest receivable			80,274				46,934				46,736				48,577				48,725
Deferred tax asset, net			208,585				116,605				78,290				69,724				72,273
Goodwill			1,398,400				973,025				973,025				973,025				973,025
Core deposit and other intangibles			63,410				23,624				25,045				26,466				27,886
Other assets			270,987				182,546				177,020				171,192				166,991
Total assets		$	24,253,168			$	18,617,995			$	18,052,138			$	17,765,056			$	17,627,192
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand and non-interest-bearing		$	6,036,583			$	4,311,400			$	4,127,878			$	4,139,149			$	4,076,570
Savings and interest-bearing transaction accounts			12,424,192				9,461,393				9,251,805				8,813,326				8,744,900
Time deposits			1,119,297				808,141				880,887				1,050,896				1,069,871
Total deposits			19,580,072				14,580,934				14,260,570				14,003,371				13,891,341
Securities sold under agreements to repurchase			118,573				151,151				140,886				141,002				150,540
FHLB and other borrowed funds			400,000				400,000				400,000				400,000				400,000
Accrued interest payable and other liabilities			197,503				131,339				113,868				113,721				118,415
Subordinated debentures			458,455				667,868				371,093				370,900				370,707
Total liabilities			20,754,603				15,931,292				15,286,417				15,028,994				14,931,003
Stockholders' equity
Common stock			2,053				1,638				1,637				1,640				1,645
Capital surplus			2,426,271				1,485,524				1,487,373				1,492,588				1,501,615
Retained earnings			1,286,146				1,304,098				1,266,249				1,215,831				1,163,810
Accumulated other comprehensive (loss) income			(215,905	)			(104,557	)			10,462				26,003				29,119
Total stockholders' equity			3,498,565				2,686,703				2,765,721				2,736,062				2,696,189
Total liabilities and stockholders' equity		$	24,253,168			$	18,617,995			$	18,052,138			$	17,765,056			$	17,627,192

Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
		Quarter Ended																			Six Months Ended
(In thousands)		Jun. 30, 2022				Mar. 31, 2022			Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021				Jun. 30, 2022			Jun. 30, 2021
Interest income:
Loans		$	181,779			$	129,442		$	136,750			$	142,609			$	141,684			$	311,221		$	292,601
Investment securities
Taxable			20,941				9,080			8,121				8,495				7,185				30,021			13,438
Tax-exempt			7,725				4,707			4,827				4,839				4,905				12,432			9,976
Deposits - other banks			6,565				1,673			1,281				1,117				707				8,238			1,117
Federal funds sold			3				1			-				-				-				4			-
Total interest income			217,013				144,903			150,979				157,060				154,481				361,916			317,132
Interest expense:
Interest on deposits			10,729				4,894			5,155				5,642				6,434				15,623			14,139
Federal funds purchased			2				-			-				-				-				2			-
FHLB borrowed funds			1,896				1,875			1,916				1,917				1,896				3,771			3,771
Securities sold under agreements to repurchase			187				108			98				102				107				295			297
Subordinated debentures			5,441				6,878			4,790				4,788				4,792				12,319			9,585
Total interest expense			18,255				13,755			11,959				12,449				13,229				32,010			27,792
Net interest income			198,758				131,148			139,020				144,611				141,252				329,906			289,340
Provision for credit losses on acquired loans			45,170				-			-				-				-				45,170			-
Provision for credit losses on acquired unfunded commitments			11,410				-			-				-				-				11,410			-
Provision for credit losses on unfunded commitments			-				-			-				-				(4,752	)			-			(4,752	)
Provision for credit losses on acquired investment securities			2,005				-			-				-				-				2,005			-
Total credit loss expense (benefit)			58,585				-			-				-				(4,752	)			58,585			(4,752	)
Net interest income after credit loss expense (benefit)			140,173				131,148			139,020				144,611				146,004				271,321			294,092
Non-interest income:
Service charges on deposit accounts			10,084				6,140			6,217				5,941				5,116				16,224			10,118
Other service charges and fees			12,541				7,733			11,133				8,051				9,659				20,274			17,267
Trust fees			4,320				574			515				479				444				4,894			966
Mortgage lending income			5,996				3,916			5,359				5,948				6,202				9,912			14,369
Insurance commissions			658				480			387				586				478				1,138			970
Increase in cash value of life insurance			1,140				492			501				509				537				1,632			1,039
Dividends from FHLB, FRB, FNBB & other			3,945				698			919				2,661				2,646				4,643			11,255
Gain on SBA loans			-				95			792				439				1,149				95			1,149
Gain (loss) on branches, equipment and other assets, net			2				16			(19	)			(34	)			(23	)			18			(52	)
Gain on OREO, net			9				478			737				246				619				487			1,020
Gain on securities, net			-				-			-				-				-				-			219
Fair value adjustment for marketable securities			(1,801	)			2,125			85				61				1,250				324			7,032
Other income			7,687				7,922			5,338				4,322				3,043				15,609			11,044
Total non-interest income			44,581				30,669			31,964				29,209				31,120				75,250			76,396
Non-interest expense:
Salaries and employee benefits			65,795				43,551			43,765				42,469				42,462				109,346			84,521
Occupancy and equipment			14,256				9,144			9,047				9,305				9,042				23,400			18,279
Data processing expense			10,094				7,039			6,493				6,024				5,893				17,133			11,763
Merger and acquisition expenses			48,731				863			880				1,006				-				49,594			-
Other operating expenses			26,606				16,299			16,865				16,815				15,585				42,905			31,285
Total non-interest expense			165,482				76,896			77,050				75,619				72,982				242,378			145,848
Income before income taxes			19,272				84,921			93,934				98,201				104,142				104,193			224,640
Income tax expense			3,294				20,029			20,577				23,209				25,072				23,323			53,968
Net income		$	15,978			$	64,892		$	73,357			$	74,992			$	79,070			$	80,870		$	170,672

Home BancShares, Inc.
Selected Financial Information
(Unaudited)
		Quarter Ended																				Six Months Ended
(Dollars and shares in thousands, except per share data)		Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021				Jun. 30, 2022				Jun. 30, 2021
PER SHARE DATA
Diluted earnings per common share		$	0.08			$	0.40			$	0.45			$	0.46			$	0.48			$	0.44			$	1.03
Diluted earnings per common share, as adjusted (non-GAAP)(1)			0.47				0.37				0.45				0.45				0.46				0.86				0.93
Basic earnings per common share			0.08				0.40				0.45				0.46				0.48				0.44				1.03
Dividends per share - common			0.165				0.165				0.14				0.14				0.14				0.33				0.28
Book value per common share			17.04				16.41				16.90				16.68				16.39				17.04				16.39
Tangible book value per common share (non-GAAP)(1)			9.92				10.32				10.80				10.59				10.31				9.92				10.31
STOCK INFORMATION
Average common shares outstanding			205,683				163,787				163,859				164,126				164,781				184,851				165,018
Average diluted shares outstanding			206,015				164,196				164,306				164,603				165,226				185,223				165,314
End of period common shares outstanding			205,291				163,758				163,699				164,008				164,488				205,291				164,488
ANNUALIZED PERFORMANCE METRICS
Return on average assets (ROA)			0.26	%			1.43	%			1.62	%			1.68	%			1.81	%			0.75	%			2.01	%
Return on average assets, as adjusted: (ROA, as adjusted) (non-GAAP)(1)			1.57	%			1.36	%			1.64	%			1.67	%			1.75	%			1.48	%			1.81	%
Return on average assets excluding intangible amortization (non-GAAP)(1)			0.31	%			1.54	%			1.75	%			1.81	%			1.95	%			0.83	%			2.16	%
Return on average assets, as adjusted, excluding intangible amortization (non-GAAP)(1)			1.70	%			1.46	%			1.76	%			1.79	%			1.89	%			1.60	%			1.95	%
Return on average assets excluding excess liquidity (non-GAAP)(1)			0.29	%			1.74	%			1.96	%			1.98	%			2.09	%			0.88	%			2.26	%
Return on average assets, as adjusted, excluding excess liquidity (non-GAAP)(1)			1.79	%			1.65	%			1.97	%			1.96	%			2.03	%			1.73	%			2.04	%
Return on average common equity (ROE)			1.78	%			9.58	%			10.63	%			10.97	%			11.92	%			5.14	%			13.02	%
Return on average common equity, as adjusted: (ROE, as adjusted) (non-GAAP)(1)			10.83	%			9.09	%			10.72	%			10.87	%			11.54	%			10.08	%			11.75	%
Return on average tangible common equity (ROTCE) (non-GAAP)(1)			2.96	%			15.03	%			16.73	%			17.39	%			19.12	%			8.32	%			20.98	%
Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) (non-GAAP)(1)			17.94	%			14.26	%			16.87	%			17.23	%			18.50	%			16.31	%			18.92	%
Return on average tangible common equity excluding intangible amortization (non-GAAP)(1)			3.30	%			15.28	%			16.97	%			17.64	%			19.38	%			8.62	%			21.24	%
Return on average tangible common equity, as adjusted, excluding intangible amortization (non-GAAP)(1)			18.29	%			14.50	%			17.11	%			17.47	%			18.76	%			16.61	%			19.18	%
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.

Home BancShares, Inc.
Selected Financial Information
(Unaudited)
		Quarter Ended																				Six Months Ended
(Dollars in thousands)		Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021				Jun. 30, 2022				Jun. 30, 2021
Efficiency ratio			66.31	%			46.15	%			43.79	%			42.26	%			41.09	%			58.26	%			38.71	%
Efficiency ratio, as adjusted (non-GAAP)(1)			46.02	%			47.33	%			43.48	%			42.29	%			42.07	%			46.53	%			41.35	%
Net interest margin - FTE (NIM)			3.64	%			3.21	%			3.42	%			3.60	%			3.61	%			3.46	%			3.81	%
Fully taxable equivalent adjustment		$	2,471			$	1,738			$	1,736			$	1,748			$	1,774			$	4,209			$	3,667
Total revenue (net)			243,339				161,817				170,984				173,820				172,372				405,156				365,736
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)			77,857				84,921				93,934				98,201				99,390				162,778				219,888
PPNR, as adjusted (non-GAAP)(1)			126,683				80,371				94,729				96,919				95,940				207,054				197,257
Pre-tax net income to total revenue (net)			7.92	%			52.48	%			54.94	%			56.50	%			60.42	%			25.72	%			61.42	%
Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1)			52.06	%			49.67	%			55.40	%			55.76	%			58.42	%			51.10	%			55.23	%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)			32.00	%			52.48	%			54.94	%			56.50	%			57.66	%			40.18	%			60.12	%
P5NR, as adjusted (non-GAAP)(1)			52.06	%			49.67	%			55.40	%			55.76	%			55.66	%			51.10	%			53.93	%
Total purchase accounting accretion		$	5,177			$	3,089			$	4,001			$	4,868			$	5,797			$	8,266			$	11,282
Average purchase accounting loan discounts			48,432				25,359				28,882				33,320				38,568				35,814				41,218
OTHER OPERATING EXPENSES
Advertising		$	2,117			$	1,266			$	1,411			$	1,204			$	1,194			$	3,383			$	2,240
Amortization of intangibles			2,477				1,421				1,420				1,421				1,421				3,898				2,842
Electronic banking expense			3,352				2,538				2,442				2,521				2,616				5,890				4,854
Directors' fees			375				404				422				395				414				779				797
Due from bank service charges			396				270				257				265				273				666				522
FDIC and state assessment			2,390				1,668				1,353				1,648				1,108				4,058				2,471
Insurance			973				770				801				749				787				1,743				1,568
Legal and accounting			1,061				797				749				1,050				1,058				1,858				1,904
Other professional fees			2,254				1,609				1,754				1,787				1,796				3,863				3,409
Operating supplies			995				754				489				474				465				1,749				952
Postage			556				306				352				301				292				862				630
Telephone			384				337				343				371				365				721				711
Other expense			9,276				4,159				5,072				4,629				3,796				13,435				8,385
Total other operating expenses		$	26,606			$	16,299			$	16,865			$	16,815			$	15,585			$	42,905			$	31,285
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.

Home BancShares, Inc.
Selected Financial Information
(Unaudited)
(Dollars in thousands)		Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021
BALANCE SHEET RATIOS
Total loans to total deposits			71.11	%			68.94	%			68.97	%			70.71	%			73.42	%
Common equity to assets			14.43	%			14.43	%			15.32	%			15.40	%			15.30	%
Tangible common equity to tangible assets (non-GAAP)(1)			8.94	%			9.59	%			10.36	%			10.36	%			10.20	%
LOANS RECEIVABLE
Real estate
Commercial real estate loans
Non-farm/non-residential		$	5,092,539			$	3,810,383			$	3,889,284			$	4,005,841			$	4,144,375
Construction/land development			2,595,384				1,856,096				1,850,050				1,742,687				1,541,482
Agricultural			329,106				142,920				130,674				138,881				126,293
Residential real estate loans
Residential 1-4 family			1,708,221				1,223,890				1,274,953				1,273,988				1,316,485
Multifamily residential			389,633				248,650				280,837				274,131				332,256
Total real estate			10,114,883				7,281,939				7,425,798				7,435,528				7,460,891
Consumer			1,106,343				1,059,342				825,519				814,732				824,938
Commercial and industrial			2,187,771				1,510,205				1,386,747				1,414,079				1,612,826
Agricultural			324,630				48,095				43,920				68,272				69,152
Other			190,246				153,133				154,105				168,489				231,368
Loans receivable		$	13,923,873			$	10,052,714			$	9,836,089			$	9,901,100			$	10,199,175
Paycheck Protection Program (PPP) loans (net of discounts) (included in total loans receivable)			37,204				59,609				112,814				241,476				473,894
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period		$	234,768			$	236,714			$	238,673			$	240,451			$	242,932
Allowance for credit losses on PCD loans - Happy acquisition			16,816				-				-				-				-
Loans charged off			3,265				2,310				3,125				2,469				3,023
Recoveries of loans previously charged off			778				364				1,166				691				542
Net loans charged off			2,487				1,946				1,959				1,778				2,481
Provision for credit losses - Happy acquisition			45,170				-				-				-				-
Balance, end of period		$	294,267			$	234,768			$	236,714			$	238,673			$	240,451
Net charge-offs to average total loans			0.07	%			0.08	%			0.08	%			0.07	%			0.09	%
Allowance for credit losses to total loans			2.11	%			2.34	%			2.41	%			2.41	%			2.36	%
Allowance for credit losses to total loans, excluding PPP loans			2.12	%			2.35	%			2.43	%			2.47	%			2.47	%
NON-PERFORMING ASSETS
Non-performing loans
Non-accrual loans		$	44,170			$	44,629			$	47,158			$	47,604			$	55,269
Loans past due 90 days or more			16,432				46				3,035				3,311				3,667
Total non-performing loans			60,602				44,675				50,193				50,915				58,936
Other non-performing assets
Foreclosed assets held for sale, net			373				1,144				1,630				1,171				1,969
Other non-performing assets			104				-				-				-				-
Total other non-performing assets			477				1,144				1,630				1,171				1,969
Total non-performing assets		$	61,079			$	45,819			$	51,823			$	52,086			$	60,905
Allowance for credit losses for loans to non-performing loans			485.57	%			525.50	%			471.61	%			468.77	%			407.99	%
Non-performing loans to total loans			0.44	%			0.44	%			0.51	%			0.51	%			0.58	%
Non-performing assets to total assets			0.25	%			0.25	%			0.29	%			0.29	%			0.35	%
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.

Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
		Three Months Ended
		June 30, 2022									March 31, 2022
(Dollars in thousands)		Average Balance			Income/ Expense			Yield/ Rate			Average Balance			Income/ Expense			Yield/ Rate
ASSETS
Earning assets
Interest-bearing balances due from banks		$	3,252,674		$	6,565		0.81	%		$	3,497,894		$	1,673		0.19	%
Federal funds sold			1,857			3		0.65	%			1,751			1		0.23	%
Investment securities - taxable			3,817,209			20,941		2.20	%			2,486,401			9,080		1.48	%
Investment securities - non-taxable - FTE			1,270,602			10,055		3.17	%			850,722			6,284		3.00	%
Loans receivable - FTE			13,838,687			181,920		5.27	%			9,937,993			129,603		5.29	%
Total interest-earning assets			22,181,029			219,484		3.97	%			16,774,761			146,641		3.55	%
Non-earning assets			2,607,336									1,618,314
Total assets		$	24,788,365								$	18,393,075
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts		$	12,632,612		$	9,770		0.31	%		$	9,363,793		$	3,873		0.17	%
Time deposits			1,170,860			959		0.33	%			854,593			1,021		0.48	%
Total interest-bearing deposits			13,803,472			10,729		0.31	%			10,218,386			4,894		0.19	%
Federal funds purchased			869			2		0.92	%			-			-		-	%
Securities sold under agreement to repurchase			123,011			187		0.61	%			137,565			108		0.32	%
FHLB borrowed funds			400,000			1,896		1.90	%			400,000			1,875		1.90	%
Subordinated debentures			568,187			5,441		3.84	%			611,888			6,878		4.56	%
Total interest-bearing liabilities			14,895,539			18,255		0.49	%			11,367,839			13,755		0.49	%
Non-interest bearing liabilities
Non-interest bearing deposits			6,138,497									4,155,894
Other liabilities			162,571									121,362
Total liabilities			21,196,607									15,645,095
Shareholders' equity			3,591,758									2,747,980
Total liabilities and shareholders' equity		$	24,788,365								$	18,393,075
Net interest spread								3.48	%								3.06	%
Net interest income and margin - FTE					$	201,229		3.64	%					$	132,886		3.21	%

Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
		Six Months Ended
		June 30, 2022									June 30, 2021
(Dollars in thousands)		Average Balance			Income/ Expense			Yield/ Rate			Average Balance			Income/ Expense			Yield/ Rate
ASSETS
Earning assets
Interest-bearing balances due from banks		$	3,374,606		$	8,238		0.49	%		$	2,096,452		$	1,117		0.11	%
Federal funds sold			1,805			4		0.45	%			84			-		-	%
Investment securities - taxable			3,155,481			30,021		1.92	%			1,774,026			13,438		1.53	%
Investment securities - non-taxable - FTE			1,061,822			16,339		3.10	%			856,332			13,259		3.12	%
Loans receivable - FTE			11,899,115			311,523		5.28	%			10,780,972			292,985		5.48	%
Total interest-earning assets			19,492,829			366,125		3.79	%			15,507,866			320,799		4.17	%
Non-earning assets			2,115,558									1,599,393
Total assets		$	21,608,387								$	17,107,259
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts		$	11,007,232		$	13,643		0.25	%		$	8,512,714		$	8,677		0.21	%
Time deposits			1,013,600			1,980		0.39	%			1,166,121			5,462		0.94	%
Total interest-bearing deposits			12,020,832			15,623		0.26	%			9,678,835			14,139		0.29	%
Federal funds purchased			437			2		0.92	%			-			-		-	%
Securities sold under agreement to repurchase			130,248			295		0.46	%			158,628			297		0.38	%
FHLB borrowed funds			400,000			3,771		1.90	%			400,000			3,771		1.90	%
Subordinated debentures			589,917			12,319		4.21	%			370,518			9,585		5.22	%
Total interest-bearing liabilities			13,141,434			32,010		0.49	%			10,607,981			27,792		0.53	%
Non-interest bearing liabilities
Non-interest bearing deposits			5,152,673									3,724,854
Other liabilities			142,080									131,446
Total liabilities			18,436,187									14,464,281
Shareholders' equity			3,172,200									2,642,978
Total liabilities and shareholders' equity		$	21,608,387								$	17,107,259
Net interest spread								3.30	%								3.64	%
Net interest income and margin - FTE					$	334,115		3.46	%					$	293,007		3.81	%

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
		Quarter Ended																				Six Months Ended
(Dollars and shares in thousands, except per share data)		Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021				Jun. 30, 2022				Jun. 30, 2021
EARNINGS, AS ADJUSTED
GAAP net income available to common shareholders (A)		$	15,978			$	64,892			$	73,357			$	74,992			$	79,070			$	80,870			$	170,672
Pre-tax adjustments
Merger and acquisition expenses			48,731				863				880				1,006				-				49,594				-
Initial provision for credit losses - acquisition			58,585				-				-				-				-				58,585				-
Fair value adjustment for marketable securities			1,801				(2,125	)			(85	)			(61	)			(1,250	)			(324	)			(7,032	)
Special dividend from equity investment			(1,434	)			-				-				(2,227	)			(2,200	)			(1,434	)			(10,273	)
TRUPS redemption fees			2,081				-				-				-				-				2,081				-
Recoveries on historic losses			(2,353	)			(3,288	)			-				-				-				(5,641	)			(5,107	)
Gain on securities			-				-				-				-				-				-				(219	)
Total pre-tax adjustments			107,411				(4,550	)			795				(1,282	)			(3,450	)			102,861				(22,631	)
Tax-effect of adjustments			26,396				(1,220	)			188				(587	)			(888	)			25,176				(5,915	)
Total adjustments after-tax (B)			81,015				(3,330	)			607				(695	)			(2,562	)			77,685				(16,716	)
Earnings, as adjusted (C)		$	96,993			$	61,562			$	73,964			$	74,297			$	76,508			$	158,555			$	153,956
Average diluted shares outstanding (D)			206,015				164,196				164,306				164,603				165,226				185,223				165,314
GAAP diluted earnings per share: (A/D)		$	0.08			$	0.40			$	0.45			$	0.46			$	0.48			$	0.44			$	1.03
Adjustments after-tax: (B/D)			0.39				(0.03	)			0.00				(0.01	)			(0.02	)			0.42				(0.10	)
Diluted earnings per common share, as adjusted: (C/D)		$	0.47			$	0.37			$	0.45			$	0.45			$	0.46			$	0.86			$	0.93
ANNUALIZED RETURN ON AVERAGE ASSETS
Return on average assets: (A/E)			0.26	%			1.43	%			1.62	%			1.68	%			1.81	%			0.75	%			2.01	%
Return on average assets, as adjusted: (ROA, as adjusted) ((A+D)/E)			1.57	%			1.36	%			1.64	%			1.67	%			1.75	%			1.48	%			1.81	%
Return on average assets excluding intangible amortization: ((A+C)/(E-F))			0.31	%			1.54	%			1.75	%			1.81	%			1.95	%			0.83	%			2.16	%
Return on average assets, as adjusted, excluding intangible amortization: ((A+C+D)/(E-F))			1.70	%			1.46	%			1.76	%			1.79	%			1.89	%			1.60	%			1.95	%
Return on average assets excluding excess liquidity: (A/(E-G))			0.29	%			1.74	%			1.96	%			1.98	%			2.09	%			0.88	%			2.26	%
Return on average assets, as adjusted, excluding excess liquidity: ((A+D)/(E-G))			1.79	%			1.65	%			1.97	%			1.96	%			2.03	%			1.73	%			2.04	%
GAAP net income available to common shareholders (A)		$	15,978			$	64,892			$	73,357			$	74,992			$	79,070			$	80,870			$	170,672
Amortization of intangibles (B)			2,477				1,421				1,420				1,421				1,421				3,898				2,842
Amortization of intangibles after-tax (C)			1,854				1,049				1,054				1,055				1,055				2,903				2,098
Adjustments after-tax (D)			81,015				(3,330	)			607				(695	)			(2,562	)			77,685				(16,716	)
Average assets (E)			24,788,365				18,393,075				17,914,727				17,695,226				17,491,359				21,608,387				17,107,259
Average goodwill, core deposits & other intangible assets (F)			1,423,466				997,338				998,760				1,000,175				1,001,598				1,211,580				1,002,301
Average interest bearing cash balance			3,252,674				3,497,894				3,261,846				2,914,785				2,577,101				3,374,606				2,096,452
Average historical interest bearing cash balance			225,000				225,000				225,000				225,000				225,000				225,000				225,000
Average excess cash balance (G)			3,027,674				3,272,894				3,036,846				2,689,785				2,352,101				3,149,606				1,871,452

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
		Quarter Ended																				Six Months Ended
(Dollars in thousands)		Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021				Jun. 30, 2022				Jun. 30, 2021
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY
Return on average common equity: (A/D)			1.78	%			9.58	%			10.63	%			10.97	%			11.92	%			5.14	%			13.02	%
Return on average common equity, as adjusted: (ROE, as adjusted) ((A+C)/D)			10.83	%			9.09	%			10.72	%			10.87	%			11.54	%			10.08	%			11.75	%
Return on average tangible common equity: (A/(D-E))			2.96	%			15.03	%			16.73	%			17.39	%			19.12	%			8.32	%			20.98	%
Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) ((A+C)/(D-E))			17.94	%			14.26	%			16.87	%			17.23	%			18.50	%			16.31	%			18.92	%
Return on average tangible common equity excluding intangible amortization: (B/(D-E))			3.30	%			15.28	%			16.97	%			17.64	%			19.38	%			8.62	%			21.24	%
Return on average tangible common equity, as adjusted, excluding intangible amortization: ((B+C)/(D-E))			18.29	%			14.50	%			17.11	%			17.47	%			18.76	%			16.61	%			19.18	%
GAAP net income available to common shareholders (A)		$	15,978			$	64,892			$	73,357			$	74,992			$	79,070			$	80,870			$	170,672
Earnings excluding intangible amortization (B)			17,832				65,941				74,411				76,047				80,125				83,773				172,770
Adjustments after-tax (C)			81,015				(3,330	)			607				(695	)			(2,562	)			77,685				(16,716	)
Average common equity (D)			3,591,758				2,747,980				2,738,305				2,710,953				2,660,147				3,172,200				2,642,978
Average goodwill, core deposits & other intangible assets (E)			1,423,466				997,338				998,760				1,000,175				1,001,598				1,211,580				1,002,301
EFFICIENCY RATIO & P5NR
Efficiency ratio: ((D-H)/(B+C+E))			66.31	%			46.15	%			43.79	%			42.26	%			41.09	%			58.26	%			38.71	%
Efficiency ratio, as adjusted: ((D-H-J)/(B+C+E-I))			46.02	%			47.33	%			43.48	%			42.29	%			42.07	%			46.53	%			41.35	%
Pre-tax net income to total revenue (net) (A/(B+C))			7.92	%			52.48	%			54.94	%			56.50	%			60.42	%			25.72	%			61.42	%
Pre-tax net income, as adjusted, to total revenue (net) ((A+F)/(B+C))			52.06	%			49.67	%			55.40	%			55.76	%			58.42	%			51.10	%			55.23	%
Pre-tax, pre-provision, net income (PPNR) (B+C-D)		$	77,857			$	84,921			$	93,934			$	98,201			$	99,390			$	162,778			$	219,888
Pre-tax, pre-provision, net income, as adjusted (B+C-D+F-G)		$	126,683			$	80,371			$	94,729			$	96,919			$	95,940			$	207,054			$	197,257
P5NR (Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C)			32.00	%			52.48	%			54.94	%			56.50	%			57.66	%			40.18	%			60.12	%
P5NR, as adjusted (B+C-D+F-G)/(B+C)			52.06	%			49.67	%			55.40	%			55.76	%			55.66	%			51.10	%			53.93	%
Pre-tax net income (A)		$	19,272			$	84,921			$	93,934			$	98,201			$	104,142			$	104,193			$	224,640
Net interest income (B)			198,758				131,148				139,020				144,611				141,252				329,906				289,340
Non-interest income (C)			44,581				30,669				31,964				29,209				31,120				75,250				76,396
Non-interest expense (D)			165,482				76,896				77,050				75,619				72,982				242,378				145,848
Fully taxable equivalent adjustment (E)			2,471				1,738				1,736				1,748				1,774				4,209				3,667
Total pre-tax adjustments (F)			107,411				(4,550	)			795				(1,282	)			(3,450	)			102,861				(22,631	)
Initial provision for credit losses - acquisition (G)			58,585				-				-				-				-				58,585				-
Amortization of intangibles (H)			2,477				1,421				1,420				1,421				1,421				3,898				2,842
Adjustments:
Non-interest income:
Fair value adjustment for marketable securities		$	(1,801	)		$	2,125			$	85			$	61			$	1,250			$	324			$	7,032
Gain on OREO			9				478				737				246				619				487				1,020
Gain (loss) on branches, equipment and other assets, net			2				16				(19	)			(34	)			(23	)			18				(52	)
Special dividend from equity investment			1,434				-				-				2,227				2,200				1,434				10,273
Gain on securities			-				-				-				-				-				-				219
Recoveries on historic losses			2,353				3,288				-				-				-				5,641				5,107
Total non-interest income adjustments (I)		$	1,997			$	5,907			$	803			$	2,500			$	4,046			$	7,904			$	23,599
Non-interest expense:
Merger and acquisition expenses			48,731				863				880				1,006				-				49,594				-
TRUPS redemption fees			2,081				-				-				-				-				2,081				-
Total non-interest expense adjustments (J)		$	50,812			$	863			$	880			$	1,006			$	-			$	51,675			$	-

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
		Quarter Ended
		Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021
TANGIBLE BOOK VALUE PER COMMON SHARE
Book value per common share: (A/B)		$	17.04			$	16.41			$	16.90			$	16.68			$	16.39
Tangible book value per common share: ((A-C-D)/B)			9.92				10.32				10.80				10.59				10.31
Total stockholders' equity (A)		$	3,498,565			$	2,686,703			$	2,765,721			$	2,736,062			$	2,696,189
End of period common shares outstanding (B)			205,291				163,758				163,699				164,008				164,488
Goodwill (C)			1,398,400				973,025				973,025				973,025				973,025
Core deposit and other intangibles (D)			63,410				23,624				25,045				26,466				27,886
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
Equity to assets: (B/A)			14.43	%			14.43	%			15.32	%			15.40	%			15.30	%
Tangible common equity to tangible assets: ((B-C-D)/(A-C-D))			8.94	%			9.59	%			10.36	%			10.36	%			10.20	%
Total assets (A)		$	24,253,168			$	18,617,995			$	18,052,138			$	17,765,056			$	17,627,192
Total stockholders' equity (B)			3,498,565				2,686,703				2,765,721				2,736,062				2,696,189
Goodwill (C)			1,398,400				973,025				973,025				973,025				973,025
Core deposit and other intangibles (D)			63,410				23,624				25,045				26,466				27,886