HOMB’s Safe Harbor for Uninsured Deposits, Strong Asset Quality and Profitability Among Shining Stars in the Second Quarter of 2023

Источник: Nasdaq GlobeNewswire / 20 июл 2023 07:15:01 America/Chicago

CONWAY, Ark., July 20, 2023 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NYSE: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.

Highlights of the Second Quarter of 2023:

Metric	Q2 2023	Q1 2023	Q4 2022	Q3 2022	Q2 2022
Net income	$105.3 million	$103.0 million	$115.7 million	$108.7 million	$16.0 million
Total revenue (net)	$257.2 million	$248.8 million	$272.3 million	$256.3 million	$243.3 million
Income before income taxes	$136.9 million	$132.9 million	$148.4 million	$142.0 million	$19.3 million
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)⁽¹⁾	$140.9 million	$134.1 million	$153.4 million	$142.0 million	$77.9 million
Pre-tax net income to total revenue (net)	53.23%	53.43%	54.50%	55.39%	7.92%
P5_NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)⁽¹⁾	54.78%	53.91%	56.34%	55.39%	32.00%
ROA	1.90%	1.84%	1.98%	1.81%	0.26%
NIM	4.28%	4.37%	4.21%	4.05%	3.64%
Purchase accounting accretion	$2.7 million	$3.2 million	$3.5 million	$4.6 million	$5.2 million
ROE	11.63%	11.70%	13.29%	12.25%	1.78%
ROTCE (non-GAAP)⁽¹⁾	19.39%	19.75%	22.96%	20.93%	2.96%
Diluted earnings per share	$0.52	$0.51	$0.57	$0.53	$0.08
Non-performing assets to total assets	0.28%	0.33%	0.27%	0.27%	0.25%
Common equity tier 1 capital	13.6%	13.2%	12.9%	13.0%	12.8%
Leverage	11.9%	11.4%	10.9%	10.4%	9.8%
Tier 1 capital	13.6%	13.2%	12.9%	13.0%	12.9%
Total risk-based capital	17.3%	16.8%	16.5%	16.7%	16.6%
Allowance for credit losses to total loans	2.01%	2.00%	2.01%	2.09%	2.11%

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

“The first six months of 2023 have been a challenging time for the banking industry; however, I am proud of the fortitude shown by Home BancShares. Our performance metrics, in the second quarter, were impressive, and I am the most proud of the fact that we can more than cover our uninsured and uncollateralized deposits. We have worked hard to protect all deposits (insured and uninsured), our shareholders, our customers and our employees. It is our committed goal to keep Home BancShares, Centennial Bank and Happy State Bank in this position,” said John Allison, Chairman and CEO of HOMB.

“Our asset quality continues to remain strong with improvements from the first quarter in nonperforming loans to total loans, nonperforming assets to total assets and non-accruals. Our disciplined underwriting is a core focus for Centennial Bank, and the proof is certainly in the pudding,” said Tracy French, President and CEO of Centennial Bank.

Liquidity and Funding Sources

At June 30, 2023, the Company held $1.71 billion in net available internal liquidity. This balance consisted of $1.20 billion in unpledged investment securities which could be used for additional secured borrowing capacity, $307.8 million in cash with the Federal Reserve Bank (FRB) and $205.4 million in other liquid cash accounts.

Consistent with the Company’s practice of maintaining access to significant external liquidity, the Company had $4.90 billion in net available external liquidity as of June 30, 2023. This included $5.20 billion in available liquidity with the Federal Home Loan Bank (FHLB), of which $1.83 billion has been drawn upon in the ordinary course of business, resulting in $3.37 billion in net available liquidity with the FHLB as of June 30, 2023. The $1.83 billion consisted of $650.0 million in outstanding FHLB advances and $1.18 billion used for pledging purposes. The Company also had access to approximately $1.48 billion in liquidity with the FRB as of June 30, 2023, of which $50.0 million has been drawn upon in the ordinary course of business, resulting in $1.43 billion in net available liquidity with the FRB as of June 30, 2023. The $1.43 billion consisted of $77.4 million available from the Discount Window and $1.35 billion available through the Bank Term Funding Program (BTFP). As of June 30, 2023, the Company also had access to $55.0 million from First National Bankers’ Bank (FNBB), and $45.0 million from other various external sources.

Overall, the Company had $6.61 billion net available liquidity as of June 30, 2023, which consisted of $1.71 billion of net available internal liquidity and $4.90 billion in net available external liquidity. Details on the Company’s available liquidity as of June 30, 2023 is available below.

(in thousands)	Total Available		Amount Used		Net Availability
Internal Sources
Unpledged investment securities (market value)	$	1,196,466	$	—	$	1,196,466
Cash at FRB		307,765		—		307,765
Other liquid cash accounts		205,389		—		205,389
Total Internal Liquidity		1,709,620		—		1,709,620
External Sources
FHLB		5,201,184		1,827,490		3,373,694
FRB Discount Window		77,440		—		77,440
BTFP (par value)		1,403,388		50,000		1,353,388
FNBB		55,000		—		55,000
Other		45,000		—		45,000
Total External Liquidity		6,782,012		1,877,490		4,904,522
Total Available Liquidity	$	8,491,632	$	1,877,490	$	6,614,142

The Company has continued to limit its exposure to uninsured deposits and has been actively monitoring this in light of the current banking environment. As of June 30, 2023, the Company held approximately $7.69 billion in uninsured deposits of which $2.76 billion were collateralized deposits, for a net position of $4.93 billion. This represents approximately 29.0% of total deposits. In addition, net available liquidity exceeded uninsured and uncollateralized deposits by $2.11 billion.

(in thousands)	As of June 30, 2023
Uninsured Deposits	$	7,688,248
Collateralized Deposits		2,761,675
Net Uninsured Position	$	4,926,573

Total Available Liquidity	$	6,614,142
Net Uninsured Position		4,926,573
Net Available Liquidity in Excess of Uninsured Deposits	$	1,687,569

In the event the Company’s $4.93 billion net position of uninsured deposits had been called by depositors on the first day of the second quarter of 2023 and remained outstanding during the entire quarter, the Company estimates that interest expense would have increased by approximately $69.6 million for the period ended June 30, 2023. The outflow of deposits could have been funded through available sources of liquidity without selling our investment securities. In this event, because of the high profitability levels of HOMB, the Company estimates that it would still have achieved return on average assets (ROA) of 1.26% for the period ended June 30, 2023.

For the first quarter, the Company ranked 8^th in the top 200 exchange-traded banks in the country for ROA⁽²⁾. The Company’s second quarter ROA of 1.90% is an impressive improvement from 1.84% for the first quarter and should retain a ranking in the top 10 for the second quarter.

Operating Highlights

Net income for the three-month period ended June 30, 2023 was $105.3 million, or $0.52 diluted earnings per share. When adjusting for non-fundamental items, net income and diluted earnings per share on an as-adjusted basis (non-GAAP), were $102.6 million⁽¹⁾, and $0.51 per share⁽¹⁾, respectively, for the three months ended June 30, 2023.

Our net interest margin was 4.28% for the three-month period ended June 30, 2023, compared to 4.37% for the three-month period ended March 31, 2023. The yield on loans was 6.84% and 6.64% for the three months ended June 30, 2023 and March 31, 2023, respectively, as average loans decreased from $14.47 billion to $14.26 billion. Additionally, the rate on interest bearing deposits increased to 2.27% as of June 30, 2023, from 1.90% as of March 31, 2023, while average interest-bearing balances decreased from $12.65 billion to $12.42 billion.

During the second quarter of 2023, there was $1.3 million of event interest income compared to event interest income of $2.1 million for the first quarter of 2023.

Purchase accounting accretion on acquired loans was $2.7 million and $3.2 million and average purchase accounting loan discounts were $32.5 million and $35.5 million for the three-month periods ended June 30, 2023 and March 31, 2023, respectively.

Net interest income on a fully taxable equivalent basis was $209.1 million for the three-month period ended June 30, 2023, and $216.2 million for the three-month period ended March 31, 2023. This reduction in net interest income for the three-month period ended June 30, 2023, was the result of an $11.6 million increase in interest expense, partially offset by an $4.6 million increase in interest income. The $11.6 million increase in interest expense was due to an $11.0 million increase in interest expense on deposits, a $406,000 increase in interest expense on FHLB borrowed funds and a $253,000 increase in interest expense on securities sold under agreement to repurchase. The increase in interest expense is a result of the rising interest rate environment. The $4.6 million increase in interest income was primarily the result of a $6.1 million increase in loan interest income, partially offset by a $1.0 million decrease in income from interest-bearing balances due from banks and a $687,000 decrease in investment income. The increase in interest income is also a result of the rising interest rate environment.

The Company reported $49.5 million of non-interest income for the second quarter of 2023. The most important components of second quarter non-interest income were $15.1 million from other income, $11.8 million from other service charges and fees, $9.2 million from service charges on deposit accounts, $4.1 million from trust fees, $2.9 million from dividends from FHLB, FRB, FNBB and other, $2.7 million in mortgage lending income and a $1.2 million increase in cash value of life insurance. The $15.1 million in other income includes $2.8 million in bank owned life insurance “BOLI” death benefit income.

Non-interest expense for the second quarter of 2023 was $116.3 million. The most important components of non-interest expense were $64.5 million from salaries and employee benefits, $27.7 million in other operating expense, $14.9 million in occupancy and equipment expenses and $9.2 million in data processing expenses. For the second quarter of 2023, our efficiency ratio was 44.00%, and our efficiency ratio, as adjusted (non-GAAP), was 44.83%⁽¹⁾_.

Financial Condition

Total loans receivable were $14.18 billion at June 30, 2023, compared to $14.39 billion at March 31, 2023. Total deposits were $17.00 billion at June 30, 2023, compared to $17.45 billion at March 31, 2023. Total assets were $22.13 billion at June 30, 2023, compared to $22.52 billion at March 31, 2023.

During the second quarter of 2023, the Company experienced approximately $205.7 million in loan decline. Centennial CFG experienced $314.3 million of organic loan decline and had loans of $1.86 billion at June 30, 2023. Our remaining markets experienced $108.8 million in organic loan growth during the quarter.

Non-performing loans to total loans was 0.43% and 0.51% at June 30, 2023 and March 31, 2023, respectively. Non-performing assets to total assets was 0.28% and 0.33% at June 30, 2023 and March 31, 2023, respectively. Net charge-offs were $3.8 million and $3.7 million for the three months ended June 30, 2023 and March 31, 2023, respectively.

Non-performing loans at June 30, 2023 were $11.2 million, $19.7 million, $22.6 million, $382,000, $3.8 million and $2.8 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $60.5 million. Non-performing assets at June 30, 2023 were $11.3 million, $20.0 million, $23.0 million, $382,000, $3.8 million and $2.8 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $61.3 million.

The Company’s allowance for credit losses on loans was $285.7 million at June 30, 2023, or 2.01% of total loans, compared to the allowance for credit losses on loans of $287.2 million, or 2.00% of total loans, at March 31, 2023. As of June 30, 2023 and March 31, 2023, the Company’s allowance for credit losses on loans was 472.23% and 388.23% of its total non-performing loans, respectively.

Stockholders’ equity was $3.65 billion at June 30, 2023, compared to $3.63 billion at March 31, 2023, an increase of approximately $23.2 million. The increase in stockholders’ equity is primarily associated with the $68.8 million increase in retained earnings, partially offset by the $36.4 million increase in accumulated other comprehensive loss and $11.8 million in stock repurchases. Book value per common share was $18.04 at June 30, 2023, compared to $17.87 at March 31, 2023. Tangible book value per common share (non-GAAP) was $10.87⁽¹⁾ at June 30, 2023, compared to $10.71⁽¹⁾ at March 31, 2023.

Branches

The Company currently has 76 branches in Arkansas, 78 branches in Florida, 63 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, July 20, 2023. 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/803091970. 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=7b6f0651&confId=52560. 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 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 1-833-470-1428, Passcode: 094402. A replay of the call will be available by calling 1-866-813-9403, Passcode: 607184, which will be available until July 27, 2023, 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.}
^{(2) The Company estimated this ranking based on available industry data.}

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 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 risks 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 that may result from any future outbreaks of the COVID-19 pandemic, including the impact on, among other things, credit quality and liquidity; the ability to identify, complete and successfully integrate new acquisitions; the risk that expected cost savings and other benefits from acquisitions may not be fully realized or may take longer to realize than expected; diversion of management time on acquisition-related issues; the availability of and access to capital and liquidity on terms acceptable to us; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations; technological changes and cybersecurity risks and incidents; 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; potential increases in deposit insurance assessments, increased regulatory scrutiny or market disruptions resulting from financial challenges in the banking industry; 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, 2022, filed with the SEC on February 24, 2023.

FOR MORE INFORMATION CONTACT:
Donna Townsell
Director of Investor Relations
Home BancShares, Inc.
(501) 328-4625

Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)

(In thousands)	Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022

ASSETS

Cash and due from banks	$	275,656		$	250,841		$	263,893		$	268,929		$	287,451
Interest-bearing deposits with other banks		335,535			437,213			460,897			1,311,492			2,528,925
Cash and cash equivalents		611,191			688,054			724,790			1,580,421			2,816,376
Federal funds sold		1,550			—			—			2,700			—
Investment securities - available-for-sale, net of allowance for credit losses		3,645,013			3,772,138			4,041,590			4,085,102			3,791,509
Investment securities - held-to-maturity, net of allowance for credit losses		1,285,150			1,286,373			1,287,705			1,251,007			1,366,781
Total investment securities		4,930,163			5,058,511			5,329,295			5,336,109			5,158,290
Loans receivable		14,180,972			14,386,634			14,409,480			13,829,311			13,923,873
Allowance for credit losses		(285,683	)		(287,169	)		(289,669	)		(289,203	)		(294,267	)
Loans receivable, net		13,895,289			14,099,465			14,119,811			13,540,108			13,629,606
Bank premises and equipment, net		397,315			402,094			405,073			411,479			415,056
Foreclosed assets held for sale		725			425			546			365			373
Cash value of life insurance		213,090			214,792			213,693			212,619			211,811
Accrued interest receivable		101,066			102,740			103,199			88,671			80,274
Deferred tax asset, net		206,430			193,334			209,321			228,979			208,585
Goodwill		1,398,253			1,398,253			1,398,253			1,394,353			1,398,400
Core deposit intangible		53,500			55,978			58,455			60,932			63,410
Other assets		317,857			304,609			321,152			300,634			270,987
Total assets	$	22,126,429		$	22,518,255		$	22,883,588		$	23,157,370		$	24,253,168

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities
Deposits:
Demand and non-interest-bearing	$	4,598,593		$	4,945,729		$	5,164,997		$	5,540,539		$	6,036,583
Savings and interest-bearing transaction accounts		11,169,940			11,392,566			11,730,552			11,968,519			12,424,192
Time deposits		1,228,358			1,107,171			1,043,234			1,033,266			1,119,297
Total deposits		16,996,891			17,445,466			17,938,783			18,542,324			19,580,072
Securities sold under agreements to repurchase		160,349			138,742			131,146			121,555			118,573
FHLB and other borrowed funds		701,550			650,000			650,000			400,000			400,000
Accrued interest payable and other liabilities		173,426			212,887			196,877			192,908			197,503
Subordinated debentures		440,129			440,275			440,420			440,568			458,455
Total liabilities		18,472,345			18,887,370			19,357,226			19,697,355			20,754,603

Stockholders' equity
Common stock		2,026			2,032			2,034			2,042			2,053
Capital surplus		2,366,560			2,375,754			2,386,699			2,404,388			2,426,271
Retained earnings		1,578,176			1,509,400			1,443,087			1,361,040			1,286,146
Accumulated other comprehensive loss		(292,678	)		(256,301	)		(305,458	)		(307,455	)		(215,905	)
Total stockholders' equity		3,654,084			3,630,885			3,526,362			3,460,015			3,498,565
Total liabilities and stockholders' equity	$	22,126,429		$	22,518,255		$	22,883,588		$	23,157,370		$	24,253,168

Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)

	Quarter Ended													Six Months Ended
(In thousands)	Jun. 30, 2023		Mar. 31, 2023			Dec. 31, 2022		Sep. 30, 2022			Jun. 30, 2022			Jun. 30, 2023			Jun. 30, 2022
Interest income:
Loans	$	243,152	$	236,997		$	221,280	$	195,841		$	181,779		$	480,149		$	311,221
Investment securities
Taxable		34,751		35,288			33,639		28,273			20,941			70,039			30,021
Tax-exempt		7,932		7,963			7,855		8,069			7,725			15,895			12,432
Deposits - other banks		3,729		4,685			10,109		10,763			6,565			8,414			8,238
Federal funds sold		68		6			12		9			3			74			4
Total interest income		289,632		284,939			272,895		242,955			217,013			574,571			361,916
Interest expense:
Interest on deposits		70,147		59,162			47,019		23,347			10,729			129,309			15,623
Federal funds purchased		2		—			—		—			2			2			2
FHLB borrowed funds		6,596		6,190			5,388		1,917			1,896			12,786			3,771
Securities sold under agreements to repurchase		1,121		868			701		434			187			1,989			295
Subordinated debentures		4,123		4,124			4,121		4,153			5,441			8,247			12,319
Total interest expense		81,989		70,344			57,229		29,851			18,255			152,333			32,010
Net interest income		207,643		214,595			215,666		213,104			198,758			422,238			329,906
Provision for credit losses on loans		2,300		1,200			5,000		—			45,170			3,500			45,170
Provision for credit losses on unfunded commitments		—		—			—		—			11,410			—			11,410
Provision for credit losses on investment securities		1,683		—			—		—			2,005			1,683			2,005
Total credit loss expense		3,983		1,200			5,000		—			58,585			5,183			58,585
Net interest income after credit loss expense		203,660		213,395			210,666		213,104			140,173			417,055			271,321
Non-interest income:
Service charges on deposit accounts		9,231		9,842			10,134		10,756			10,084			19,073			16,224
Other service charges and fees		11,763		11,875			10,363		13,951			12,541			23,638			20,274
Trust fees		4,052		4,864			3,981		3,980			4,320			8,916			4,894
Mortgage lending income		2,650		2,571			3,566		4,179			5,996			5,221			9,912
Insurance commissions		518		526			453		601			658			1,044			1,138
Increase in cash value of life insurance		1,211		1,104			1,079		1,089			1,140			2,315			1,632
Dividends from FHLB, FRB, FNBB & other		2,922		2,794			2,814		1,741			3,945			5,716			4,643
Gain on SBA loans		—		139			30		58			—			139			95
Gain (loss) on branches, equipment and other assets, net		917		7			10		(13	)		2			924			18
Gain on OREO, net		319		—			13		—			9			319			487
Fair value adjustment for marketable securities		783		(11,408	)		1,032		(2,628	)		(1,801	)		(10,625	)		324
Other income		15,143		11,850			23,185		9,487			7,687			26,993			15,609
Total non-interest income		49,509		34,164			56,660		43,201			44,581			83,673			75,250
Non-interest expense:
Salaries and employee benefits		64,534		64,490			64,249		65,290			65,795			129,024			109,346
Occupancy and equipment		14,923		14,952			14,884		15,133			14,256			29,875			23,400
Data processing expense		9,151		8,968			9,062		8,747			10,094			18,119			17,133
Merger and acquisition expenses		—		—			—		—			48,731			—			49,594
Other operating expenses		27,674		26,234			30,708		25,176			26,606			53,908			42,905
Total non-interest expense		116,282		114,644			118,903		114,346			165,482			230,926			242,378
Income before income taxes		136,887		132,915			148,423		141,959			19,272			269,802			104,193
Income tax expense		31,616		29,953			32,736		33,254			3,294			61,569			23,323
Net income	$	105,271	$	102,962		$	115,687	$	108,705		$	15,978		$	208,233		$	80,870

Home BancShares, Inc.
Selected Financial Information
(Unaudited)

	Quarter Ended															Six Months Ended
(Dollars and shares in thousands, except per share data)	Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Jun. 30, 2023			Jun. 30, 2022
PER SHARE DATA
Diluted earnings per common share	$	0.52		$	0.51		$	0.57		$	0.53		$	0.08		$	1.02		$	0.44
Diluted earnings per common share, as adjusted (non-GAAP)⁽¹⁾		0.51			0.54			0.53			0.54			0.47			1.04			0.86
Basic earnings per common share		0.52			0.51			0.57			0.53			0.08			1.03			0.44
Dividends per share - common		0.18			0.18			0.165			0.165			0.165			0.36			0.33
Book value per common share		18.04			17.87			17.33			16.94			17.04			18.04			17.04
Tangible book value per common share (non-GAAP)⁽¹⁾		10.87			10.71			10.17			9.82			9.92			10.87			9.92

STOCK INFORMATION
Average common shares outstanding		202,793			203,456			203,924			204,829			205,683			203,122			184,851
Average diluted shares outstanding		202,923			203,625			204,179			205,135			206,015			203,274			185,223
End of period common shares outstanding		202,573			203,168			203,434			204,219			205,291			202,573			205,291

ANNUALIZED PERFORMANCE METRICS

Return on average assets (ROA)		1.90	%		1.84	%		1.98	%		1.81	%		0.26	%		1.87	%		0.75	%
Return on average assets, as adjusted: (ROA, as adjusted) (non-GAAP)⁽¹⁾		1.85	%		1.95	%		1.84	%		1.83	%		1.57	%		1.90	%		1.48	%
Return on average assets excluding intangible amortization (non-GAAP)⁽¹⁾		2.07	%		2.00	%		2.15	%		1.97	%		0.31	%		2.03	%		0.83	%
Return on average assets, as adjusted, excluding intangible amortization (non-GAAP)⁽¹⁾		2.02	%		2.12	%		2.00	%		1.99	%		1.70	%		2.07	%		1.60	%
Return on average common equity (ROE)		11.63	%		11.70	%		13.29	%		12.25	%		1.78	%		11.66	%		5.14	%
Return on average common equity, as adjusted: (ROE, as adjusted) (non-GAAP)⁽¹⁾		11.33	%		12.38	%		12.35	%		12.39	%		10.83	%		11.85	%		10.08	%
Return on average tangible common equity (ROTCE) (non-GAAP)⁽¹⁾		19.39	%		19.75	%		22.96	%		20.93	%		2.96	%		19.57	%		8.32	%
Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) (non-GAAP)⁽¹⁾		18.90	%		20.90	%		21.33	%		21.16	%		17.94	%		19.88	%		16.31	%
Return on average tangible common equity excluding intangible amortization (non-GAAP)⁽¹⁾		19.74	%		20.11	%		23.33	%		21.29	%		3.30	%		19.92	%		8.62	%
Return on average tangible common equity, as adjusted, excluding intangible amortization (non-GAAP)⁽¹⁾		19.24	%		21.26	%		21.70	%		21.52	%		18.29	%		20.23	%		16.61	%

(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, 2023			Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Jun. 30, 2023			Jun. 30, 2022
Efficiency ratio		44.00	%		44.80	%		42.44	%		43.24	%		66.31	%		44.39	%		58.26	%
Efficiency ratio, as adjusted (non-GAAP)⁽¹⁾		44.83	%		43.42	%		43.07	%		42.97	%		46.02	%		44.12	%		46.53	%
Net interest margin - FTE (NIM)		4.28	%		4.37	%		4.21	%		4.05	%		3.64	%		4.33	%		3.46	%
Fully taxable equivalent adjustment	$	1,494		$	1,628		$	2,017		$	2,437		$	2,471		$	3,122		$	4,209
Total revenue (net)		257,152			248,759			272,326			256,305			243,339			505,911			405,156
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)⁽¹⁾		140,870			134,115			153,423			141,959			77,857			274,985			162,778
PPNR, as adjusted (non-GAAP)⁽¹⁾		137,308			142,062			142,567			143,522			126,683			279,370			207,054
Pre-tax net income to total revenue (net)		53.23	%		53.43	%		54.50	%		55.39	%		7.92	%		53.33	%		25.72	%
Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)⁽¹⁾		51.85	%		56.63	%		50.52	%		56.00	%		52.06	%		54.20	%		51.10	%
P5_NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)⁽¹⁾		54.78	%		53.91	%		56.34	%		55.39	%		32.00	%		54.35	%		40.18	%
P5_NR, as adjusted (non-GAAP)⁽¹⁾		53.40	%		57.11	%		52.35	%		56.00	%		52.06	%		55.22	%		51.10	%
Total purchase accounting accretion	$	2,660		$	3,172		$	3,497		$	4,578		$	5,177		$	5,832		$	8,266
Average purchase accounting loan discounts		32,546			35,482			38,552			42,050			46,258			34,022			35,814

OTHER OPERATING EXPENSES

Hurricane expense	$	—		$	—		$	176		$	—		$	—		$	—		$	—
Advertising		2,098			2,231			2,567			2,024			2,117			4,329			3,383
Amortization of intangibles		2,478			2,477			2,478			2,477			2,477			4,955			3,898
Electronic banking expense		3,675			3,330			3,914			3,828			3,352			7,005			5,890
Directors' fees		538			460			358			354			375			998			779
Due from bank service charges		286			273			273			316			396			559			666
FDIC and state assessment		3,220			3,500			2,224			2,146			2,390			6,720			4,058
Insurance		927			889			1,003			959			973			1,816			1,743
Legal and accounting		1,436			1,088			5,962			1,581			1,061			2,524			1,858
Other professional fees		2,774			2,284			2,552			2,466			2,254			5,058			3,863
Operating supplies		763			738			690			681			995			1,501			1,749
Postage		586			501			602			614			556			1,087			862
Telephone		573			528			576			593			384			1,101			721
Other expense		8,320			7,935			7,333			7,137			9,276			16,255			13,435
Total other operating expenses	$	27,674		$	26,234		$	30,708		$	25,176		$	26,606		$	53,908		$	42,905

(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, 2023			Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022
BALANCE SHEET RATIOS
Total loans to total deposits		83.43	%		82.47	%		80.33	%		74.58	%		71.11	%
Common equity to assets		16.51	%		16.12	%		15.41	%		14.94	%		14.43	%
Tangible common equity to tangible assets (non-GAAP)⁽¹⁾		10.65	%		10.33	%		9.66	%		9.24	%		8.94	%
LOANS RECEIVABLE
Real estate
Commercial real estate loans
Non-farm/non-residential	$	5,480,738		$	5,524,125		$	5,632,063		$	5,156,438		$	5,092,539
Construction/land development		2,201,514			2,160,514			2,135,266			2,232,906			2,595,384
Agricultural		340,067			342,814			346,811			330,748			329,106
Residential real estate loans
Residential 1-4 family		1,790,218			1,748,231			1,748,551			1,704,850			1,708,221
Multifamily residential		455,754			637,633			578,052			525,110			389,633
Total real estate		10,268,291			10,413,317			10,440,743			9,950,052			10,114,883
Consumer		1,156,273			1,173,325			1,149,896			1,120,250			1,106,343
Commercial and industrial		2,288,646			2,368,428			2,349,263			2,268,750			2,187,771
Agricultural		297,743			250,851			285,235			313,693			324,630
Other		170,019			180,713			184,343			176,566			190,246
Loans receivable	$	14,180,972		$	14,386,634		$	14,409,480		$	13,829,311		$	13,923,873
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period	$	287,169		$	289,669		$	289,203		$	294,267		$	234,768
Allowance for credit losses on PCD loans - Happy acquisition		—			—			—			—			16,816
Loans charged off		4,726			4,288			5,379			6,313			3,265
Recoveries of loans previously charged off		940			588			845			1,249			778
Net loans charged off		3,786			3,700			4,534			5,064			2,487
Provision for credit losses - Happy acquisition		—			—			—			—			45,170
Provision for credit losses - loans		2,300			1,200			5,000			—			—
Balance, end of period	$	285,683		$	287,169		$	289,669		$	289,203		$	294,267
Net charge-offs to average total loans		0.11	%		0.10	%		0.13	%		0.15	%		0.07	%
Allowance for credit losses to total loans		2.01	%		2.00	%		2.01	%		2.09	%		2.11	%
NON-PERFORMING ASSETS
Non-performing loans
Non-accrual loans	$	49,627		$	65,401		$	51,011		$	56,796		$	44,170
Loans past due 90 days or more		10,869			8,567			9,845			4,898			16,432
Total non-performing loans		60,496			73,968			60,856			61,694			60,602
Other non-performing assets
Foreclosed assets held for sale, net		725			425			546			365			373
Other non-performing assets		64			74			74			104			104
Total other non-performing assets		789			499			620			469			477
Total non-performing assets	$	61,285		$	74,467		$	61,476		$	62,163		$	61,079
Allowance for credit losses for loans to non-performing loans		472.23	%		388.23	%		475.99	%		468.77	%		485.57	%
Non-performing loans to total loans		0.43	%		0.51	%		0.42	%		0.45	%		0.44	%
Non-performing assets to total assets		0.28	%		0.33	%		0.27	%		0.27	%		0.25	%


(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, 2023						March 31, 2023
(Dollars in thousands)	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
ASSETS
Earning assets
Interest-bearing balances due from banks	$	320,039	$	3,729	4.67	%	$	426,051	$	4,685	4.46	%
Federal funds sold		5,350		68	5.10	%		474		6	5.13	%
Investment securities - taxable		3,718,320		34,751	3.75	%		3,867,737		35,288	3.70	%
Investment securities - non-taxable - FTE		1,280,781		9,332	2.92	%		1,289,564		9,482	2.98	%
Loans receivable - FTE		14,259,647		243,246	6.84	%		14,474,072		237,106	6.64	%
Total interest-earning assets		19,584,137		291,126	5.96	%		20,057,898		286,567	5.79	%
Non-earning assets		2,643,267						2,637,957
Total assets	$	22,227,404					$	22,695,855

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	11,242,988	$	62,637	2.23	%	$	11,579,329	$	54,857	1.92	%
Time deposits		1,174,925		7,510	2.56	%		1,072,094		4,305	1.63	%
Total interest-bearing deposits		12,417,913		70,147	2.27	%		12,651,423		59,162	1.90	%
Federal funds purchased		123		2	6.52	%		—		—	—	%
Securities sold under agreement to repurchase		143,969		1,121	3.12	%		134,934		868	2.61	%
FHLB borrowed funds		679,445		6,596	3.89	%		651,111		6,190	3.86	%
Subordinated debentures		440,201		4,123	3.76	%		440,346		4,124	3.80	%
Total interest-bearing liabilities		13,681,651		81,989	2.40	%		13,877,814		70,344	2.06	%
Non-interest bearing liabilities
Non-interest bearing deposits		4,717,623						5,043,219
Other liabilities		197,936						205,230
Total liabilities		18,597,210						19,126,263
Shareholders' equity		3,630,194						3,569,592
Total liabilities and shareholders' equity	$	22,227,404					$	22,695,855
Net interest spread					3.56	%					3.73	%
Net interest income and margin - FTE			$	209,137	4.28	%			$	216,223	4.37	%

Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)

	Six Months Ended
	June 30, 2023						June 30, 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	$	372,752	$	8,414	4.55	%	$	3,374,606	$	8,238	0.49	%
Federal funds sold		2,926		74	5.10	%		1,805		4	0.45	%
Investment securities - taxable		3,791,872		70,039	3.72	%		3,155,481		30,021	1.92	%
Investment securities - non-taxable - FTE		1,285,148		18,814	2.95	%		1,061,822		16,339	3.10	%
Loans receivable - FTE		14,366,267		480,352	6.74	%		11,899,115		311,523	5.28	%
Total interest-earning assets		19,818,965		577,693	5.88	%		19,492,829		366,125	3.79	%
Non-earning assets		2,641,370						2,115,558
Total assets	$	22,460,335					$	21,608,387

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	11,410,230	$	117,493	2.08	%	$	11,007,232	$	13,643	0.25	%
Time deposits		1,123,793		11,816	2.12	%		1,013,600		1,980	0.39	%
Total interest-bearing deposits		12,534,023		129,309	2.08	%		12,020,832		15,623	0.26	%
Federal funds purchased		62		2	6.51	%		437		2	0.92	%
Securities sold under agreement to repurchase		139,477		1,989	2.88	%		130,248		295	0.46	%
FHLB borrowed funds		665,356		12,786	3.88	%		400,000		3,771	1.90	%
Subordinated debentures		440,273		8,247	3.78	%		589,917		12,319	4.21	%
Total interest-bearing liabilities		13,779,191		152,333	2.23	%		13,141,434		32,010	0.49	%
Non-interest bearing liabilities
Non-interest bearing deposits		4,879,521						5,152,673
Other liabilities		201,562						142,080
Total liabilities		18,860,274						18,436,187
Shareholders' equity		3,600,061						3,172,200
Total liabilities and shareholders' equity	$	22,460,335					$	21,608,387
Net interest spread					3.65	%					3.30	%
Net interest income and margin - FTE			$	425,360	4.33	%			$	334,115	3.46	%

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)

	Quarter Ended															Six Months Ended
(Dollars and shares in thousands, except per share data)	Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Jun. 30, 2023			Jun. 30, 2022
EARNINGS, AS ADJUSTED
GAAP net income available to common shareholders (A)	$	105,271		$	102,962		$	115,687		$	108,705		$	15,978		$	208,233		$	80,870
Pre-tax adjustments
BOLI death benefits		(2,779	)		—			—			—			—			(2,779	)		—
Merger and acquisition expenses		—			—			—			—			48,731			—			49,594
Initial provision for credit losses - acquisition		—			—			—			—			58,585			—			58,585
Fair value adjustment for marketable securities		(783	)		11,408			(1,032	)		2,628			1,801			10,625			(324	)
Special dividend from equity investment		—			—			—			—			(1,434	)		—			(1,434	)
TRUPS redemption fees		—			—			—			—			2,081			—			2,081
Special lawsuit settlement, net of expense		—			—			(10,000	)		—			—			—			—
Recoveries on historic losses		—			(3,461	)		—			(1,065	)		(2,353	)		(3,461	)		(5,641	)
Hurricane expense		—			—			176			—			—			—			—
Total pre-tax adjustments		(3,562	)		7,947			(10,856	)		1,563			107,411			4,385			102,861
Tax-effect of adjustments		(879	)		1,961			(2,679	)		393			26,396			1,082			25,176
Total adjustments after-tax (B)		(2,683	)		5,986			(8,177	)		1,170			81,015			3,303			77,685
Earnings, as adjusted (C)	$	102,588		$	108,948		$	107,510		$	109,875		$	96,993		$	211,536		$	158,555

Average diluted shares outstanding (D)		202,923			203,625			204,179			205,135			206,015			203,274			185,223

GAAP diluted earnings per share: (A/D)	$	0.52		$	0.51		$	0.57		$	0.53		$	0.08		$	1.02		$	0.44
Adjustments after-tax: (B/D)		(0.01	)		0.03			(0.04	)		0.01			0.39			0.02			0.42
Diluted earnings per common share, as adjusted: (C/D)	$	0.51		$	0.54		$	0.53		$	0.54		$	0.47		$	1.04		$	0.86

ANNUALIZED RETURN ON AVERAGE ASSETS

Return on average assets: (A/E)		1.90	%		1.84	%		1.98	%		1.81	%		0.26	%		1.87	%		0.75	%
Return on average assets, as adjusted: (ROA, as adjusted) ((A+D)/E)		1.85	%		1.95	%		1.84	%		1.83	%		1.57	%		1.90	%		1.48	%
Return on average assets excluding intangible amortization: ((A+C)/(E-F))		2.07	%		2.00	%		2.15	%		1.97	%		0.31	%		2.03	%		0.83	%
Return on average assets, as adjusted, excluding intangible amortization: ((A+C+D)/(E-F))		2.02	%		2.12	%		2.00	%		1.99	%		1.70	%		2.07	%		1.60	%

GAAP net income available to common shareholders (A)	$	105,271		$	102,962		$	115,687		$	108,705		$	15,978		$	208,233		$	80,870
Amortization of intangibles (B)		2,478			2,477			2,478			2,477			2,477			4,955			3,898
Amortization of intangibles after-tax (C)		1,866			1,866			1,866			1,854			1,854			3,732			2,903
Adjustments after-tax (D)		(2,683	)		5,986			(8,177	)		1,170			81,015			3,303			77,685
Average assets (E)		22,227,404			22,695,855			23,187,005			23,778,769			24,788,365			22,460,335			21,608,387
Average goodwill & core deposit intangible (F)		1,452,951			1,455,423			1,454,639			1,459,034			1,423,466			1,454,180			1,211,580

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)

	Quarter Ended															Six Months Ended
(Dollars in thousands)	Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Jun. 30, 2023			Jun. 30, 2022
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY
Return on average common equity: (A/D)		11.63	%		11.70	%		13.29	%		12.25	%		1.78	%		11.66	%		5.14	%
Return on average common equity, as adjusted: (ROE, as adjusted) ((A+C)/D)		11.33	%		12.38	%		12.35	%		12.39	%		10.83	%		11.85	%		10.08	%
Return on average tangible common equity: (A/(D-E))		19.39	%		19.75	%		22.96	%		20.93	%		2.96	%		19.57	%		8.32	%
Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) ((A+C)/(D-E))		18.90	%		20.90	%		21.33	%		21.16	%		17.94	%		19.88	%		16.31	%
Return on average tangible common equity excluding intangible amortization: (B/(D-E))		19.74	%		20.11	%		23.33	%		21.29	%		3.30	%		19.92	%		8.62	%
Return on average tangible common equity, as adjusted, excluding intangible amortization: ((B+C)/(D-E))		19.24	%		21.26	%		21.70	%		21.52	%		18.29	%		20.23	%		16.61	%

GAAP net income available to common shareholders (A)	$	105,271		$	102,962		$	115,687		$	108,705		$	15,978		$	208,233		$	80,870
Earnings excluding intangible amortization (B)		107,137			104,828			117,553			110,559			17,832			211,965			83,773
Adjustments after-tax (C)		(2,683	)		5,986			(8,177	)		1,170			81,015			3,303			77,685
Average common equity (D)		3,630,194			3,569,592			3,454,005			3,519,296			3,591,758			3,600,061			3,172,200
Average goodwill & core deposits intangible (E)		1,452,951			1,455,423			1,454,639			1,459,034			1,423,466			1,454,180			1,211,580

EFFICIENCY RATIO & P5NR

Efficiency ratio: ((D-H)/(B+C+E))		44.00	%		44.80	%		42.44	%		43.24	%		66.31	%		44.39	%		58.26	%
Efficiency ratio, as adjusted: ((D-H-J)/(B+C+E-I))		44.83	%		43.42	%		43.07	%		42.97	%		46.02	%		44.12	%		46.53	%
Pre-tax net income to total revenue (net) (A/(B+C))		53.23	%		53.43	%		54.50	%		55.39	%		7.92	%		53.33	%		25.72	%
Pre-tax net income, as adjusted, to total revenue (net) ((A+F)/(B+C))		51.85	%		56.63	%		50.52	%		56.00	%		52.06	%		54.20	%		51.10	%
Pre-tax, pre-provision, net income (PPNR) (B+C-D)	$	140,870		$	134,115		$	153,423		$	141,959		$	77,857		$	274,985		$	162,778
Pre-tax, pre-provision, net income, as adjusted (B+C-D+F-G)	$	137,308		$	142,062		$	142,567		$	143,522		$	126,683		$	279,370		$	207,054
P5_NR (Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C)		54.78	%		53.91	%		56.34	%		55.39	%		32.00	%		54.35	%		40.18	%
P5_NR, as adjusted (B+C-D+F-G)/(B+C)		53.40	%		57.11	%		52.35	%		56.00	%		52.06	%		55.22	%		51.10	%

Pre-tax net income (A)	$	136,887		$	132,915		$	148,423		$	141,959		$	19,272		$	269,802		$	104,193
Net interest income (B)		207,643			214,595			215,666			213,104			198,758			422,238			329,906
Non-interest income (C)		49,509			34,164			56,660			43,201			44,581			83,673			75,250
Non-interest expense (D)		116,282			114,644			118,903			114,346			165,482			230,926			242,378
Fully taxable equivalent adjustment (E)		1,494			1,628			2,017			2,437			2,471			3,122			4,209
Total pre-tax adjustments (F)		(3,562	)		7,947			(10,856	)		1,563			107,411			4,385			102,861
Initial provision for credit losses - acquisition (G)		—			—			—			—			58,585			—			58,585
Amortization of intangibles (H)		2,478			2,477			2,478			2,477			2,477			4,955			3,898

Adjustments:
Non-interest income:
Fair value adjustment for marketable securities	$	783		$	(11,408	)	$	1,032		$	(2,628	)	$	(1,801	)	$	(10,625	)	$	324
Gain on OREO		319			—			13			—			9			319			487
Gain (loss) on branches, equipment and other assets, net		917			7			10			(13	)		2			924			18
Special dividend from equity investment		—			—			—			—			1,434			—			1,434
BOLI death benefits		2,779			—			—			—			—			2,779			—
Lawsuit settlement - special lawsuit		—			—			15,000			—			—			—			—
Recoveries on historic losses		—			3,461			—			1,065			2,353			3,461			5,641
Total non-interest income adjustments (I)	$	4,798		$	(7,940	)	$	16,055		$	(1,576	)	$	1,997		$	(3,142	)	$	7,904

Non-interest expense:
Merger and acquisition expenses		—			—			—			—			48,731			—			49,594
Hurricane expense		—			—			176			—			—			—			—
Legal expense - special lawsuit		—			—			5,000			—			—			—			—
TRUPS redemption fees		—			—			—			—			2,081			—			2,081
Total non-interest expense adjustments (J)	$	—		$	—		$	5,176		$	—		$	50,812		$	—		$	51,675

Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)

	Quarter Ended
	Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022
TANGIBLE BOOK VALUE PER COMMON SHARE
Book value per common share: (A/B)	$	18.04		$	17.87		$	17.33		$	16.94		$	17.04
Tangible book value per common share: ((A-C-D)/B)		10.87			10.71			10.17			9.82			9.92

Total stockholders' equity (A)	$	3,654,084		$	3,630,885		$	3,526,362		$	3,460,015		$	3,498,565
End of period common shares outstanding (B)		202,573			203,168			203,434			204,219			205,291
Goodwill (C)		1,398,253			1,398,253			1,398,253			1,394,353			1,398,400
Core deposit and other intangibles (D)		53,500			55,978			58,455			60,932			63,410

TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
Equity to assets: (B/A)		16.51	%		16.12	%		15.41	%		14.94	%		14.43	%
Tangible common equity to tangible assets: ((B-C-D)/(A-C-D))		10.65	%		10.33	%		9.66	%		9.24	%		8.94	%

Total assets (A)	$	22,126,429		$	22,518,255		$	22,883,588		$	23,157,370		$	24,253,168
Total stockholders' equity (B)		3,654,084			3,630,885			3,526,362			3,460,015			3,498,565
Goodwill (C)		1,398,253			1,398,253			1,398,253			1,394,353			1,398,400
Core deposit and other intangibles (D)		53,500			55,978			58,455			60,932			63,410

HOMB’s Safe Harbor for Uninsured Deposits, Strong Asset Quality and Profitability Among Shining Stars in the Second Quarter of 2023

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