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 Third Quarter of 2022:

Metric	Q3 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2021
Net income	$108.7 million			$16.0 million			$64.9 million			$73.4 million			$75.0 million
Net income, as adjusted (non-GAAP)(1)	$109.9 million			$97.0 million			$61.6 million			$74.0 million			$74.3 million
Total revenue (net)	$256.3 million			$243.3 million			$161.8 million			$171.0 million			$173.8 million
Income before income taxes	$142.0 million			$19.3 million			$84.9 million			$93.9 million			$98.2 million
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)	$142.0 million			$77.9 million			$84.9 million			$93.9 million			$98.2 million
PPNR, as adjusted (non-GAAP)(1)	$143.5 million			$126.7 million			$80.4 million			$94.7 million			$96.9 million
Pre-tax net income to total revenue (net)		55.39%			7.92%			52.48%			54.94%			56.50%
Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1)		56.00%			52.06%			49.67%			55.40%			55.76%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)		55.39%			32.00%			52.48%			54.94%			56.50%
P5NR, as adjusted (non-GAAP)(1)		56.00%			52.06%			49.67%			55.40%			55.76%
ROA		1.81%			0.26%			1.43%			1.62%			1.68%
ROA, as adjusted (non-GAAP)(1)		1.83%			1.57%			1.36%			1.64%			1.67%
NIM		4.05%			3.64%			3.21%			3.42%			3.60%
Purchase accounting accretion	$4.6 million			$5.2 million			$3.1 million			$4.0 million			$4.9 million
ROE		12.25%			1.78%			9.58%			10.63%			10.97%
ROE, as adjusted (non-GAAP)(1)		12.39%			10.83%			9.09%			10.72%			10.87%
ROTCE (non-GAAP)(1)		20.93%			2.96%			15.03%			16.73%			17.39%
ROTCE, as adjusted (non-GAAP)(1)		21.16%			17.94%			14.26%			16.87%			17.23%
Diluted earnings per share	$0.53			$0.08			$0.40			$0.45			$0.46
Diluted earnings per share, as adjusted (non-GAAP)(1)	$0.54			$0.47			$0.37			$0.45			$0.45
Non-performing assets to total assets		0.27%			0.25%			0.25%			0.29%			0.29%
Common equity tier 1 capital		13.0%			12.8%			14.9%			15.4%			15.1%
Leverage		10.4%			9.8%			10.8%			11.1%			11.0%
Tier 1 capital		13.0%			12.9%			15.5%			16.0%			15.7%
Total risk-based capital		16.7%			16.6%			21.6%			19.8%			19.6%
Allowance for credit losses to total loans		2.09%			2.11%			2.34%			2.41%			2.41%

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

“Despite the distraction out of West Texas and changes in the economy, HOMB reported record net income for the quarter of $108.7 million along with record total net revenue of $256.3 million, and our net interest margin is back where we like it at 4.05%. We continue to keep the Company positioned to weather the storm, when and if it hits,” said John Allison, Chairman.

“While reviewing the results of the quarter, I circled eighteen different numbers on the final results page and many of the circles were some of the best numbers we have ever had. I want to thank our team for the outstanding effort that led to this great quarter. I also want to send a special thanks to the West Texas Happy team for fighting the battle with the competition the way they have,” said Tracy French, Centennial Bank President and Chief Executive Officer.

Operating Highlights

Net income for the three-month period ended September 30, 2022 was $108.7 million, or $0.53 earnings per share. Net income for the nine-month period ended September 30, 2022 was $189.6 million, or $0.99 earnings per share. When adjusting for merger related and other non-fundamental items, net income and earnings per share on an as-adjusted basis (non-GAAP), were $109.9 million(1), or $0.54 per share(1), and $268.4 million(1), or $1.40 per share(1), for the three-month and nine-month periods ended September 30, 2022, respectively.

Our net interest margin was 4.05% for the three-month period ended September 30, 2022, compared to 3.64% for the three-month period ended June 30, 2022. The yield on loans was 5.63% and 5.27% for the three months ended September 30, 2022 and June 30, 2022, respectively, as average loans decreased from $13.84 billion to $13.82 billion. Additionally, the rate on interest bearing deposits increased to 0.70% as of September 30, 2022, from 0.31% as of June 30, 2022, while average balances decreased from $13.80 billion to $13.31 billion.

During the third quarter of 2022, there was $943,000 of event interest income compared to event interest income of $602,000 for the second quarter of 2022.

Purchase accounting accretion on acquired loans was $4.6 million and $5.2 million and average purchase accounting loan discounts were $42.1 million and $46.3 million for the three-month periods ended September 30, 2022 and June 30, 2022, respectively. The reduction in accretion income lowered the net interest margin by 2 basis points for the three-month period ended September 30, 2022.

Net interest income on a fully taxable equivalent basis was $215.5 million for the three-month period ended September 30, 2022, and $201.2 million for the three-month period ended June 30, 2022. This increase in net interest income for the three-month period ended September 30, 2022, was the result of a $25.9 million increase in interest income, partially offset by an $11.6 million increase in interest expense. The $25.9 million increase in interest income was primarily the result of a $14.1 million increase in loan interest income, a $7.6 million increase in investment income and a $4.2 million increase in income from deposits with other banks resulting from the rising interest rate environment. The $11.6 million increase in interest expense was due to a $12.6 million increase in interest expense on deposits, which was partially offset by a $1.3 decrease in interest expense on subordinated debentures. The increase in interest expense on deposits is a result of the rising rate environment.

The Company reported $43.2 million of non-interest income for the third quarter of 2022. The most important components of the third quarter non-interest income were $14.0 million from other service charges and fees, $10.8 million from service charges on deposit accounts, $9.5 million from other income, $4.2 million in mortgage lending income, $4.0 million from trust fees, $1.7 million from dividends from FHLB, FRB, FNBB and other, a $1.1 million increase in cash value of life insurance, and $601,000 from insurance commissions. These amounts were partially offset by a $2.6 million loss from the fair value adjustment for marketable securities. The $9.5 million in other income includes $1.1 million in recoveries on historic losses of loans acquired that were written off prior to acquisition.

Non-interest expense for the third quarter of 2022 was $114.3 million. The most important components of the third quarter non-interest expense were $65.3 million from salaries and employee benefits, $25.2 million in other expense, $15.1 million in occupancy and equipment expenses and $8.7 million in data processing expenses. There were no merger and acquisition expenses during the third quarter of 2022. For the third quarter of 2022, our efficiency ratio was 43.24%; and, our efficiency ratio, as adjusted (non-GAAP) was 42.97%(1).

Financial Condition

Total loans receivable were $13.83 billion at September 30, 2022, compared to $13.92 billion at June 30, 2022. Total deposits were $18.54 billion at September 30, 2022, compared to $19.58 billion at June 30, 2022. Total assets were $23.16 billion at September 30, 2022, compared to $24.25 billion at June 30, 2022.

During the third quarter of 2022, the Company experienced approximately $94.6 million in loan decline. Centennial CFG experienced $342.0 million of organic loan decline and had loans of $2.08 billion at September 30, 2022. Our remaining footprint experienced $273.8 million in organic loan growth and $26.4 million in PPP loan decline during the quarter.

Non-performing loans to total loans was 0.45% and 0.44% at September 30, 2022 and June 30, 2022, respectively. Non-performing assets to total assets was 0.27% and 0.25% at September 30, 2022 and June 30, 2022, respectively. Net charge-offs were $5.1 million and $2.5 million for the three months ended September 30, 2022 and June 30, 2022, respectively.

Non-performing loans at September 30, 2022, were $10.2 million, $24.8 million, $13.7 million, $204,000, $1.4 million and $11.4 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $61.7 million. Non-performing assets at September 30, 2022, were $10.2 million, $25.0 million, $14.0 million, $204,000, $1.4 million and $11.4 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $62.2 million.

The Company’s allowance for credit losses on loans was $289.2 million at September 30, 2022, or 2.09% of total loans, compared to the allowance for credit losses on loans of $294.3 million, or 2.11% of total loans, at June 30, 2022. As of September 30, 2022 and June 30, 2022, the Company’s allowance for credit losses on loans was 468.77% and 485.57% of its total non-performing loans, respectively.

Stockholders’ equity was $3.46 billion at September 30, 2022, compared to $3.50 billion at June 30, 2022, a decrease of approximately $38.6 million. The decrease in stockholders’ equity is primarily associated with the $91.6 million increase in accumulated other comprehensive loss and net stock repurchases of $24.3 million, which were partially offset by a $74.9 million increase in retained earnings and share-based compensation of $2.4 million. Book value per common share was $16.94 at September 30, 2022, compared to $17.04 at June 30, 2022. Tangible book value per common share (non-GAAP) was $9.82(1) at September 30, 2022, compared to $9.92(1) at June 30, 2022.

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 p.m. ET) on Thursday, October 20, 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/384737075. 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://www.netroadshow.com/events/login?show=d3582338&confId=42282. 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: 824264. A replay of the call will be available by calling 1-866-813-9403, Passcode: 090248, which will be available until October 27, 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.

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

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); PPNR, as adjusted; pre-tax net income, as adjusted, to total revenue (net); 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; 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 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, including the ongoing impacts of inflation; 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 Bancshares, Inc. (“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 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, military conflicts and other major domestic or international events; adverse weather events, including hurricanes, and other natural disasters; 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)		Sep. 30, 2022				Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021
ASSETS
Cash and due from banks		$	268,929			$	287,451			$	173,134			$	119,908			$	146,378
Interest-bearing deposits with other banks			1,311,492				2,528,925				3,446,324				3,530,407				3,133,878
Cash and cash equivalents			1,580,421				2,816,376				3,619,458				3,650,315				3,280,256
Federal funds sold			2,700				—				—				—				—
Investment securities - available-for sale, net of allowance for credit losses			4,085,102				3,791,509				2,957,322				3,119,807				3,150,608
Investment securities - held-to-maturity, net of allowance for credit losses			1,251,007				1,366,781				499,265				—				—
Total investment securities			5,336,109				5,158,290				3,456,587				3,119,807				3,150,608
Loans receivable			13,829,311				13,923,873				10,052,714				9,836,089				9,901,100
Allowance for credit losses			(289,203	)			(294,267	)			(234,768	)			(236,714	)			(238,673	)
Loans receivable, net			13,540,108				13,629,606				9,817,946				9,599,375				9,662,427
Bank premises and equipment, net			411,479				415,056				274,503				275,760				276,972
Foreclosed assets held for sale			365				373				1,144				1,630				1,171
Cash value of life insurance			212,619				211,811				105,623				105,135				104,638
Accrued interest receivable			88,671				80,274				46,934				46,736				48,577
Deferred tax asset, net			228,979				208,585				116,605				78,290				69,724
Goodwill			1,394,353				1,398,400				973,025				973,025				973,025
Core deposit and other intangibles			60,932				63,410				23,624				25,045				26,466
Other assets			300,634				270,987				182,546				177,020				171,192
Total assets		$	23,157,370			$	24,253,168			$	18,617,995			$	18,052,138			$	17,765,056
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand and non-interest-bearing		$	5,540,539			$	6,036,583			$	4,311,400			$	4,127,878			$	4,139,149
Savings and interest-bearing transaction accounts			11,968,519				12,424,192				9,461,393				9,251,805				8,813,326
Time deposits			1,033,266				1,119,297				808,141				880,887				1,050,896
Total deposits			18,542,324				19,580,072				14,580,934				14,260,570				14,003,371
Securities sold under agreements to repurchase			121,555				118,573				151,151				140,886				141,002
FHLB and other borrowed funds			400,000				400,000				400,000				400,000				400,000
Accrued interest payable and other liabilities			192,908				197,503				131,339				113,868				113,721
Subordinated debentures			440,568				458,455				667,868				371,093				370,900
Total liabilities			19,697,355				20,754,603				15,931,292				15,286,417				15,028,994
Stockholders' equity
Common stock			2,042				2,053				1,638				1,637				1,640
Capital surplus			2,404,388				2,426,271				1,485,524				1,487,373				1,492,588
Retained earnings			1,361,040				1,286,146				1,304,098				1,266,249				1,215,831
Accumulated other comprehensive (loss) income			(307,455	)			(215,905	)			(104,557	)			10,462				26,003
Total stockholders' equity			3,460,015				3,498,565				2,686,703				2,765,721				2,736,062
Total liabilities and stockholders' equity		$	23,157,370			$	24,253,168			$	18,617,995			$	18,052,138			$	17,765,056

Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
		Quarter Ended																			Nine Months Ended
(In thousands)		Sep. 30, 2022				Jun. 30, 2022				Mar. 31, 2022			Dec. 31, 2021				Sep. 30, 2021				Sep. 30, 2022				Sep. 30, 2021
Interest income:
Loans		$	195,841			$	181,779			$	129,442		$	136,750			$	142,609			$	507,062			$	435,210
Investment securities
Taxable			28,273				20,941				9,080			8,121				8,495				58,294				21,933
Tax-exempt			8,069				7,725				4,707			4,827				4,839				20,501				14,815
Deposits - other banks			10,763				6,565				1,673			1,281				1,117				19,001				2,234
Federal funds sold			9				3				1			—				—				13				—
Total interest income			242,955				217,013				144,903			150,979				157,060				604,871				474,192
Interest expense:
Interest on deposits			23,347				10,729				4,894			5,155				5,642				38,970				19,781
Federal funds purchased			—				2				—			—				—				2				—
FHLB borrowed funds			1,917				1,896				1,875			1,916				1,917				5,688				5,688
Securities sold under agreements to repurchase			434				187				108			98				102				729				399
Subordinated debentures			4,153				5,441				6,878			4,790				4,788				16,472				14,373
Total interest expense			29,851				18,255				13,755			11,959				12,449				61,861				40,241
Net interest income			213,104				198,758				131,148			139,020				144,611				543,010				433,951
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	)
Provision for credit losses on acquired investment securities			—				2,005				—			—				—				2,005				—
Total credit loss expense (benefit)			—				58,585				—			—				—				58,585				(4,752	)
Net interest income after credit loss expense (benefit)			213,104				140,173				131,148			139,020				144,611				484,425				438,703
Non-interest income:
Service charges on deposit accounts			10,756				10,084				6,140			6,217				5,941				26,980				16,059
Other service charges and fees			13,951				12,541				7,733			11,133				8,051				34,225				25,318
Trust fees			3,980				4,320				574			515				479				8,874				1,445
Mortgage lending income			4,179				5,996				3,916			5,359				5,948				14,091				20,317
Insurance commissions			601				658				480			387				586				1,739				1,556
Increase in cash value of life insurance			1,089				1,140				492			501				509				2,721				1,548
Dividends from FHLB, FRB, FNBB & other			1,741				3,945				698			919				2,661				6,384				13,916
Gain on SBA loans			58				—				95			792				439				153				1,588
(Loss) gain on branches, equipment and other assets, net			(13	)			2				16			(19	)			(34	)			5				(86	)
Gain on OREO, net			—				9				478			737				246				487				1,266
Gain on securities, net			—				—				—			—				—				—				219
Fair value adjustment for marketable securities			(2,628	)			(1,801	)			2,125			85				61				(2,304	)			7,093
Other income			9,487				7,687				7,922			5,338				4,322				25,096				15,366
Total non-interest income			43,201				44,581				30,669			31,964				29,209				118,451				105,605
Non-interest expense:
Salaries and employee benefits			65,290				65,795				43,551			43,765				42,469				174,636				126,990
Occupancy and equipment			15,133				14,256				9,144			9,047				9,305				38,533				27,584
Data processing expense			8,747				10,094				7,039			6,493				6,024				25,880				17,787
Merger and acquisition expenses			—				48,731				863			880				1,006				49,594				1,006
Other operating expenses			25,176				26,606				16,299			16,865				16,815				68,081				48,100
Total non-interest expense			114,346				165,482				76,896			77,050				75,619				356,724				221,467
Income before income taxes			141,959				19,272				84,921			93,934				98,201				246,152				322,841
Income tax expense			33,254				3,294				20,029			20,577				23,209				56,577				77,177
Net income		$	108,705			$	15,978			$	64,892		$	73,357			$	74,992			$	189,575			$	245,664

Home BancShares, Inc.
Selected Financial Information
(Unaudited)
		Quarter Ended																				Nine Months Ended
(Dollars and shares in thousands, except per share data)		Sep. 30, 2022				Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Sep. 30, 2022				Sep. 30, 2021
PER SHARE DATA
Diluted earnings per common share		$	0.53			$	0.08			$	0.40			$	0.45			$	0.46			$	0.99			$	1.49
Diluted earnings per common share, as adjusted (non-GAAP)(1)			0.54				0.47				0.37				0.45				0.45				1.40				1.38
Basic earnings per common share			0.53				0.08				0.40				0.45				0.46				0.99				1.49
Dividends per share - common			0.165				0.165				0.165				0.14				0.14				0.495				0.42
Book value per common share			16.94				17.04				16.41				16.90				16.68				16.94				16.68
Tangible book value per common share (non-GAAP)(1)			9.82				9.92				10.32				10.80				10.59				9.82				10.59
STOCK INFORMATION
Average common shares outstanding			204,829				205,683				163,787				163,859				164,126				191,584				164,717
Average diluted shares outstanding			205,135				206,015				164,196				164,306				164,603				191,941				165,050
End of period common shares outstanding			204,219				205,291				163,758				163,699				164,008				204,219				164,008
ANNUALIZED PERFORMANCE METRICS
Return on average assets (ROA)			1.81%				0.26%				1.43%				1.62%				1.68%				1.13%				1.90%
Return on average assets, as adjusted: (ROA, as adjusted) (non-GAAP)(1)			1.83%				1.57%				1.36%				1.64%				1.67%				1.61%				1.76%
Return on average assets excluding intangible amortization (non-GAAP)(1)			1.97%				0.31%				1.54%				1.75%				1.81%				1.23%				2.04%
Return on average assets, as adjusted, excluding intangible amortization (non-GAAP)(1)			1.99%				1.70%				1.46%				1.76%				1.79%				1.74%				1.90%
Return on average assets excluding excess liquidity (non-GAAP)(1)			1.96%				0.29%				1.74%				1.96%				1.98%				1.29%				2.17%
Return on average assets, as adjusted, excluding excess liquidity (non-GAAP)(1)			1.98%				1.79%				1.65%				1.97%				1.96%				1.83%				2.01%
Return on average common equity (ROE)			12.25%				1.78%				9.58%				10.63%				10.97%				7.71%				12.32%
Return on average common equity, as adjusted: (ROE, as adjusted) (non-GAAP)(1)			12.39%				10.83%				9.09%				10.72%				10.87%				10.91%				11.44%
Return on average tangible common equity (ROTCE) (non-GAAP)(1)			20.93%				2.96%				15.03%				16.73%				17.39%				12.71%				19.74%
Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) (non-GAAP)(1)			21.16%				17.94%				14.26%				16.87%				17.23%				18.00%				18.33%
Return on average tangible common equity excluding intangible amortization (non-GAAP)(1)			21.29%				3.30%				15.28%				16.97%				17.64%				13.03%				19.99%
Return on average tangible common equity, as adjusted, excluding intangible amortization (non-GAAP)(1)			21.52%				18.29%				14.50%				17.11%				17.47%				18.32%				18.58%
(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																				Nine Months Ended
(Dollars in thousands)		Sep. 30, 2022				Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Sep. 30, 2022				Sep. 30, 2021
Efficiency ratio			43.24%				66.31%				46.15%				43.79%				42.26%				52.44%				39.86%
Efficiency ratio, as adjusted (non-GAAP)(1)			42.97%				46.02%				47.33%				43.48%				42.29%				45.13%				41.67%
Net interest margin - FTE (NIM)			4.05%				3.64%				3.21%				3.42%				3.60%				3.67%				3.74%
Fully taxable equivalent adjustment		$	2,437			$	2,471			$	1,738			$	1,736			$	1,748			$	6,646			$	5,343
Total revenue (net)			256,305				243,339				161,817				170,984				173,820				661,461				539,556
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)			141,959				77,857				84,921				93,934				98,201				304,737				318,089
PPNR, as adjusted (non-GAAP)(1)			143,522				126,683				80,371				94,729				96,919				350,576				294,176
Pre-tax net income to total revenue (net)			55.39%				7.92%				52.48%				54.94%				56.50%				37.21%				59.83%
Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1)			56.00%				52.06%				49.67%				55.40%				55.76%				53.00%				55.40%
P5NR(Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)			55.39%				32.00%				52.48%				54.94%				56.50%				46.07%				58.95%
P5NR, as adjusted (non-GAAP)(1)			56.00%				52.06%				49.67%				55.40%				55.76%				53.00%				54.52%
Total purchase accounting accretion		$	4,578			$	5,177			$	3,089			$	4,001			$	4,868			$	12,844			$	16,150
Average purchase accounting loan discounts			42,050				46,258				25,359				28,882				33,320				37,889				38,587
OTHER OPERATING EXPENSES
Advertising		$	2,024			$	2,117			$	1,266			$	1,411			$	1,204			$	5,407			$	3,444
Amortization of intangibles			2,477				2,477				1,421				1,420				1,421				6,375				4,262
Electronic banking expense			3,828				3,352				2,538				2,442				2,521				9,718				7,375
Directors' fees			354				375				404				422				395				1,133				1,192
Due from bank service charges			316				396				270				257				265				982				787
FDIC and state assessment			2,146				2,390				1,668				1,353				1,648				6,204				4,119
Insurance			959				973				770				801				749				2,702				2,317
Legal and accounting			1,581				1,061				797				749				1,050				3,439				2,954
Other professional fees			2,466				2,254				1,609				1,754				1,787				6,329				5,196
Operating supplies			681				995				754				489				474				2,430				1,426
Postage			614				556				306				352				301				1,476				931
Telephone			593				384				337				343				371				1,314				1,082
Other expense			7,137				9,276				4,159				5,072				4,629				20,572				13,015
Total other operating expenses		$	25,176			$	26,606			$	16,299			$	16,865			$	16,815			$	68,081			$	48,100
(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)		Sep. 30, 2022				Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021
BALANCE SHEET RATIOS
Total loans to total deposits			74.58%				71.11%				68.94%				68.97%				70.71%
Common equity to assets			14.94%				14.43%				14.43%				15.32%				15.40%
Tangible common equity to tangible assets (non-GAAP)(1)			9.24%				8.94%				9.59%				10.36%				10.36%
LOANS RECEIVABLE
Real estate
Commercial real estate loans
Non-farm/non-residential		$	5,156,438			$	5,092,539			$	3,810,383			$	3,889,284			$	4,005,841
Construction/land development			2,232,906				2,595,384				1,856,096				1,850,050				1,742,687
Agricultural			330,748				329,106				142,920				130,674				138,881
Residential real estate loans
Residential 1-4 family			1,704,850				1,708,221				1,223,890				1,274,953				1,273,988
Multifamily residential			525,110				389,633				248,650				280,837				274,131
Total real estate			9,950,052				10,114,883				7,281,939				7,425,798				7,435,528
Consumer			1,120,250				1,106,343				1,059,342				825,519				814,732
Commercial and industrial			2,268,750				2,187,771				1,510,205				1,386,747				1,414,079
Agricultural			313,693				324,630				48,095				43,920				68,272
Other			176,566				190,246				153,133				154,105				168,489
Loans receivable		$	13,829,311			$	13,923,873			$	10,052,714			$	9,836,089			$	9,901,100
Paycheck Protection Program (PPP) loans (net of discounts) (included in total loans receivable)			10,771				37,204				59,609				112,814				241,476
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period		$	294,267			$	234,768			$	236,714			$	238,673			$	240,451
Allowance for credit losses on PCD loans - Happy acquisition			—				16,816				—				—				—
Loans charged off			6,313				3,265				2,310				3,125				2,469
Recoveries of loans previously charged off			1,249				778				364				1,166				691
Net loans charged off			5,064				2,487				1,946				1,959				1,778
Provision for credit losses - Happy acquisition			—				45,170				—				—				—
Balance, end of period		$	289,203			$	294,267			$	234,768			$	236,714			$	238,673
Net charge-offs to average total loans			0.15%				0.07%				0.08%				0.08%				0.07%
Allowance for credit losses to total loans			2.09%				2.11%				2.34%				2.41%				2.41%
NON-PERFORMING ASSETS
Non-performing loans
Non-accrual loans		$	56,796			$	44,170			$	44,629			$	47,158			$	47,604
Loans past due 90 days or more			4,898				16,432				46				3,035				3,311
Total non-performing loans			61,694				60,602				44,675				50,193				50,915
Other non-performing assets
Foreclosed assets held for sale, net			365				373				1,144				1,630				1,171
Other non-performing assets			104				104				—				—				—
Total other non-performing assets			469				477				1,144				1,630				1,171
Total non-performing assets		$	62,163			$	61,079			$	45,819			$	51,823			$	52,086
Allowance for credit losses for loans to non-performing loans			468.77%				485.57%				525.50%				471.61%				468.77%
Non-performing loans to total loans			0.45%				0.44%				0.44%				0.51%				0.51%
Non-performing assets to total assets			0.27%				0.25%				0.25%				0.29%				0.29%
(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
		September 30, 2022									June 30, 2022
(Dollars in thousands)		AverageBalance			Income/Expense			Yield/Rate			AverageBalance			Income/Expense			Yield/Rate
ASSETS
Earning assets
Interest-bearing balances due from banks		$	1,965,136		$	10,763		2.17	%		$	3,252,674		$	6,565		0.81	%
Federal funds sold			1,176			9		3.04	%			1,857			3		0.65	%
Investment securities - taxable			4,008,230			28,273		2.80	%			3,817,209			20,941		2.20	%
Investment securities - non-taxable - FTE			1,292,702			10,370		3.18	%			1,270,602			10,055		3.17	%
Loans receivable - FTE			13,822,459			195,977		5.63	%			13,838,687			181,920		5.27	%
Total interest-earning assets			21,089,703			245,392		4.62	%			22,181,029			219,484		3.97	%
Non-earning assets			2,689,066									2,607,336
Total assets		$	23,778,769								$	24,788,365
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts		$	12,233,755		$	22,388		0.73	%		$	12,632,612		$	9,770		0.31	%
Time deposits			1,078,112			959		0.35	%			1,170,860			959		0.33	%
Total interest-bearing deposits			13,311,867			23,347		0.70	%			13,803,472			10,729		0.31	%
Federal funds purchased			14			—		—	%			869			2		0.92	%
Securities sold under agreement to repurchase			126,770			434		1.36	%			123,011			187		0.61	%
FHLB borrowed funds			400,012			1,917		1.90	%			400,000			1,896		1.90	%
Subordinated debentures			442,312			4,153		3.73	%			568,187			5,441		3.84	%
Total interest-bearing liabilities			14,280,975			29,851		0.83	%			14,895,539			18,255		0.49	%
Non-interest bearing liabilities
Non-interest bearing deposits			5,779,082									6,138,497
Other liabilities			199,416									162,571
Total liabilities			20,259,473									21,196,607
Shareholders' equity			3,519,296									3,591,758
Total liabilities and shareholders' equity		$	23,778,769								$	24,788,365
Net interest spread								3.79	%								3.48	%
Net interest income and margin - FTE					$	215,541		4.05	%					$	201,229		3.64	%

Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
		Nine Months Ended
		September 30, 2022									September 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		$	2,899,620		$	19,001		0.88	%		$	2,372,227		$	2,234		0.13	%
Federal funds sold			1,593			13		1.09	%			83			—		—	%
Investment securities - taxable			3,442,854			58,294		2.26	%			1,947,799			21,933		1.51	%
Investment securities - non-taxable - FTE			1,139,628			26,709		3.13	%			858,440			19,610		3.05	%
Loans receivable - FTE			12,547,275			507,500		5.41	%			10,532,411			435,758		5.53	%
Total interest-earning assets			20,030,970			611,517		4.08	%			15,710,960			479,535		4.08	%
Non-earning assets			2,308,827									1,594,442
Total assets		$	22,339,797								$	17,305,402
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts		$	11,420,566		$	36,031		0.42	%		$	8,607,728		$	12,289		0.19	%
Time deposits			1,035,340			2,939		0.38	%			1,131,538			7,492		0.89	%
Total interest-bearing deposits			12,455,906			38,970		0.42	%			9,739,266			19,781		0.27	%
Federal funds purchased			294			2		0.91	%			—			—		—	%
Securities sold under agreement to repurchase			129,076			729		0.76	%			153,677			399		0.35	%
FHLB borrowed funds			400,004			5,688		1.90	%			400,000			5,688		1.90	%
Subordinated debentures			540,175			16,472		4.08	%			370,615			14,373		5.19	%
Total interest-bearing liabilities			13,525,455			61,861		0.61	%			10,663,558			40,241		0.50	%
Non-interest bearing liabilities
Non-interest bearing deposits			5,363,770									3,848,302
Other liabilities			161,402									127,656
Total liabilities			19,050,627									14,639,516
Shareholders' equity			3,289,170									2,665,886
Total liabilities and shareholders' equity		$	22,339,797								$	17,305,402
Net interest spread								3.47	%								3.58	%
Net interest income and margin - FTE					$	549,656		3.67	%					$	439,294		3.74	%

Non-GAAP Reconciliations
(Unaudited)
		Quarter Ended																				Nine Months Ended
(Dollars and shares in thousands, except per share data)		Sep. 30, 2022				Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Sep. 30, 2022				Sep. 30, 2021
EARNINGS, AS ADJUSTED
GAAP net income available to common shareholders (A)		$	108,705			$	15,978			$	64,892			$	73,357			$	74,992			$	189,575			$	245,664
Pre-tax adjustments
Merger and acquisition expenses			—				48,731				863				880				1,006				49,594				1,006
Initial provision for credit losses - acquisition			—				58,585				—				—				—				58,585				—
Fair value adjustment for marketable securities			2,628				1,801				(2,125	)			(85	)			(61	)			2,304				(7,093	)
Special dividend from equity investment			—				(1,434	)			—				—				(2,227	)			(1,434	)			(12,500	)
TRUPS redemption fees			—				2,081				—				—				—				2,081				—
Recoveries on historic losses			(1,065	)			(2,353	)			(3,288	)			—				—				(6,706	)			(5,107	)
Gain on securities			—				—				—				—				—				—				(219	)
Total pre-tax adjustments			1,563				107,411				(4,550	)			795				(1,282	)			104,424				(23,913	)
Tax-effect of adjustments			393				26,396				(1,220	)			188				(587	)			25,569				(6,412	)
Total adjustments after-tax (B)			1,170				81,015				(3,330	)			607				(695	)			78,855				(17,501	)
Earnings, as adjusted (C)		$	109,875			$	96,993			$	61,562			$	73,964			$	74,297			$	268,430			$	228,163
Average diluted shares outstanding (D)			205,135				206,015				164,196				164,306				164,603				191,941				165,050
GAAP diluted earnings per share: (A/D)		$	0.53			$	0.08			$	0.40			$	0.45			$	0.46			$	0.99			$	1.49
Adjustments after-tax: (B/D)			0.01				0.39				(0.03	)			0.00				(0.01	)			0.41				(0.11	)
Diluted earnings per common share, as adjusted: (C/D)		$	0.54			$	0.47			$	0.37			$	0.45			$	0.45			$	1.40			$	1.38
ANNUALIZED RETURN ON AVERAGE ASSETS
Return on average assets: (A/E)			1.81%				0.26%				1.43%				1.62%				1.68%				1.13%				1.90%
Return on average assets, as adjusted: (ROA, as adjusted) ((A+D)/E)			1.83%				1.57%				1.36%				1.64%				1.67%				1.61%				1.76%
Return on average assets excluding intangible amortization: ((A+C)/(E-F))			1.97%				0.31%				1.54%				1.75%				1.81%				1.23%				2.04%
Return on average assets, as adjusted, excluding intangible amortization: ((A+C+D)/(E-F))			1.99%				1.70%				1.46%				1.76%				1.79%				1.74%				1.90%
Return on average assets excluding excess liquidity: (A/(E-G))			1.96%				0.29%				1.74%				1.96%				1.98%				1.29%				2.17%
Return on average assets, as adjusted, excluding excess liquidity: ((A+D)/(E-G))			1.98%				1.79%				1.65%				1.97%				1.96%				1.83%				2.01%
GAAP net income available to common shareholders (A)		$	108,705			$	15,978			$	64,892			$	73,357			$	74,992			$	189,575			$	245,664
Amortization of intangibles (B)			2,477				2,477				1,421				1,420				1,421				6,375				4,262
Amortization of intangibles after-tax (C)			1,854				1,854				1,049				1,054				1,055				4,757				3,164
Adjustments after-tax (D)			1,170				81,015				(3,330	)			607				(695	)			78,855				(17,501	)
Average assets (E)			23,778,769				24,788,365				18,393,075				17,914,727				17,695,226				22,339,797				17,305,402
Average goodwill, core deposits & other intangible assets (F)			1,459,034				1,423,466				997,338				998,760				1,000,175				1,294,971				1,001,585
Average interest bearing cash balance			1,965,136				3,252,674				3,497,894				3,261,846				2,914,785				2,899,620				2,372,227
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)			1,740,136				3,027,674				3,272,894				3,036,846				2,689,785				2,674,620				2,147,227

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
		Quarter Ended																				Nine Months Ended
(Dollars in thousands)		Sep. 30, 2022				Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Sep. 30, 2022				Sep. 30, 2021
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY
Return on average common equity: (A/D)			12.25%				1.78%				9.58%				10.63%				10.97%				7.71%				12.32%
Return on average common equity, as adjusted: (ROE, as adjusted) ((A+C)/D)			12.39%				10.83%				9.09%				10.72%				10.87%				10.91%				11.44%
Return on average tangible common equity: (A/(D-E))			20.93%				2.96%				15.03%				16.73%				17.39%				12.71%				19.74%
Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) ((A+C)/(D-E))			21.16%				17.94%				14.26%				16.87%				17.23%				18.00%				18.33%
Return on average tangible common equity excluding intangible amortization: (B/(D-E))			21.29%				3.30%				15.28%				16.97%				17.64%				13.03%				19.99%
Return on average tangible common equity, as adjusted, excluding intangible amortization: ((B+C)/(D-E))			21.52%				18.29%				14.50%				17.11%				17.47%				18.32%				18.58%
GAAP net income available to common shareholders (A)		$	108,705			$	15,978			$	64,892			$	73,357			$	74,992			$	189,575			$	245,664
Earnings excluding intangible amortization (B)			110,559				17,832				65,941				74,411				76,047				194,332				248,828
Adjustments after-tax (C)			1,170				81,015				(3,330	)			607				(695	)			78,855				(17,501	)
Average common equity (D)			3,519,296				3,591,758				2,747,980				2,738,305				2,710,953				3,289,170				2,665,886
Average goodwill, core deposits & other intangible assets (E)			1,459,034				1,423,466				997,338				998,760				1,000,175				1,294,971				1,001,585
EFFICIENCY RATIO & P5NR
Efficiency ratio: ((D-H)/(B+C+E))			43.24%				66.31%				46.15%				43.79%				42.26%				52.44%				39.86%
Efficiency ratio, as adjusted: ((D-H-J)/(B+C+E-I))			42.97%				46.02%				47.33%				43.48%				42.29%				45.13%				41.67%
Pre-tax net income to total revenue (net) (A/(B+C))			55.39%				7.92%				52.48%				54.94%				56.50%				37.21%				59.83%
Pre-tax net income, as adjusted, to total revenue (net) ((A+F)/(B+C))			56.00%				52.06%				49.67%				55.40%				55.76%				53.00%				55.40%
Pre-tax, pre-provision, net income (PPNR) (B+C-D)		$	141,959			$	77,857			$	84,921			$	93,934			$	98,201			$	304,737			$	318,089
Pre-tax, pre-provision, net income, as adjusted (B+C-D+F-G)		$	143,522			$	126,683			$	80,371			$	94,729			$	96,919			$	350,576			$	294,176
P5NR(Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C)			55.39%				32.00%				52.48%				54.94%				56.50%				46.07%				58.95%
P5NR, as adjusted (B+C-D+F-G)/(B+C)			56.00%				52.06%				49.67%				55.40%				55.76%				53.00%				54.52%
Pre-tax net income (A)		$	141,959			$	19,272			$	84,921			$	93,934			$	98,201			$	246,152			$	322,841
Net interest income (B)			213,104				198,758				131,148				139,020				144,611				543,010				433,951
Non-interest income (C)			43,201				44,581				30,669				31,964				29,209				118,451				105,605
Non-interest expense (D)			114,346				165,482				76,896				77,050				75,619				356,724				221,467
Fully taxable equivalent adjustment (E)			2,437				2,471				1,738				1,736				1,748				6,646				5,343
Total pre-tax adjustments (F)			1,563				107,411				(4,550	)			795				(1,282	)			104,424				(23,913	)
Initial provision for credit losses - acquisition (G)			—				58,585				—				—				—				58,585				—
Amortization of intangibles (H)			2,477				2,477				1,421				1,420				1,421				6,375				4,262
Adjustments:
Non-interest income:
Fair value adjustment for marketable securities		$	(2,628	)		$	(1,801	)		$	2,125			$	85			$	61			$	(2,304	)		$	7,093
Gain on OREO			—				9				478				737				246				487				1,266
(Loss) gain on branches, equipment and other assets, net			(13	)			2				16				(19	)			(34	)			5				(86	)
Special dividend from equity investment			—				1,434				—				—				2,227				1,434				12,500
Gain on securities			—				—				—				—				—				—				219
Recoveries on historic losses			1,065				2,353				3,288				—				—				6,706				5,107
Total non-interest income adjustments (I)		$	(1,576	)		$	1,997			$	5,907			$	803			$	2,500			$	6,328			$	26,099
Non-interest expense:
Merger and acquisition expenses			—				48,731				863				880				1,006				49,594				1,006
TRUPS redemption fees			—				2,081				—				—				—				2,081				—
Total non-interest expense adjustments (J)		$	—			$	50,812			$	863			$	880			$	1,006			$	51,675			$	1,006

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
		Quarter Ended
		Sep. 30, 2022				Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021
TANGIBLE BOOK VALUE PER COMMON SHARE
Book value per common share: (A/B)		$	16.94			$	17.04			$	16.41			$	16.90			$	16.68
Tangible book value per common share: ((A-C-D)/B)			9.82				9.92				10.32				10.80				10.59
Total stockholders' equity (A)		$	3,460,015			$	3,498,565			$	2,686,703			$	2,765,721			$	2,736,062
End of period common shares outstanding (B)			204,219				205,291				163,758				163,699				164,008
Goodwill (C)			1,394,353				1,398,400				973,025				973,025				973,025
Core deposit and other intangibles (D)			60,932				63,410				23,624				25,045				26,466
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
Equity to assets: (B/A)			14.94%				14.43%				14.43%				15.32%				15.40%
Tangible common equity to tangible assets: ((B-C-D)/(A-C-D))			9.24%				8.94%				9.59%				10.36%				10.36%
Total assets (A)		$	23,157,370			$	24,253,168			$	18,617,995			$	18,052,138			$	17,765,056
Total stockholders' equity (B)			3,460,015				3,498,565				2,686,703				2,765,721				2,736,062
Goodwill (C)			1,394,353				1,398,400				973,025				973,025				973,025
Core deposit and other intangibles (D)			60,932				63,410				23,624				25,045				26,466