Document

EX-99.1 2 homb033124earningsrelease.htm EX-99.1 Document

EXHIBIT 99.1


For Immediate Release:			April 18, 2024

All Operating Metrics Up and Expenses Down, Great Start at HOMB

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

Quarterly Highlights


Metric	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
Net income	$100.1 million	$86.2 million	$98.5 million	$105.3 million	$103.0 million
Net income, as adjusted (non-GAAP)(1)	$99.2 million	$92.2 million	$94.7 million	$102.6 million	$108.9 million
Total revenue (net)	$246.4 million	$245.6 million	$245.4 million	$257.2 million	$248.8 million
Income before income taxes	$130.4 million	$112.8 million	$129.3 million	$136.9 million	$132.9 million
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)	$134.9 million	$118.4 million	$130.6 million	$140.9 million	$134.1 million
PPNR, as adjusted (non-GAAP)(1)	$133.7 million	$126.4 million	$125.7 million	$137.3 million	$142.1 million
Pre-tax net income to total revenue (net)	52.92%	45.92%	52.70%	53.23%	53.43%
Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1)	52.45%	49.16%	50.72%	51.85%	56.63%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)	54.75%	48.22%	53.23%	54.78%	53.91%
P5NR, as adjusted (non-GAAP)(1)	54.28%	51.46%	51.25%	53.40%	57.11%
ROA	1.78%	1.55%	1.78%	1.90%	1.84%
ROA, as adjusted (non-GAAP)(1)	1.76%	1.66%	1.72%	1.85%	1.95%
NIM	4.13%	4.17%	4.19%	4.28%	4.37%
Purchase accounting accretion	$2.8 million	$2.3 million	$2.4 million	$2.7 million	$3.2 million
ROE	10.64%	9.36%	10.65%	11.63%	11.70%
ROE, as adjusted (non-GAAP)(1)	10.54%	10.00%	10.25%	11.33%	12.38%
ROTCE (non-GAAP)(1)	17.22%	15.49%	17.62%	19.39%	19.75%
ROTCE, as adjusted (non-GAAP)(1)	17.07%	16.56%	16.95%	18.90%	20.90%
Diluted earnings per share	$0.50	$0.43	$0.49	$0.52	$0.51
Diluted earnings per share, as adjusted (non-GAAP)(1)	$0.49	$0.46	$0.47	$0.51	$0.54

Non-performing assets to total assets	0.48%	0.42%	0.42%	0.28%	0.33%
Common equity tier 1 capital	14.3%	14.2%	14.0%	13.6%	13.2%
Leverage	12.3%	12.4%	12.4%	11.9%	11.4%
Tier 1 capital	14.3%	14.2%	14.0%	13.6%	13.2%
Total risk-based capital	17.9%	17.8%	17.6%	17.3%	16.8%
Allowance for credit losses to total loans	2.00%	2.00%	2.00%	2.01%	2.00%
Book value per share	$18.98	$18.81	$18.06	$18.04	$17.87
Tangible book value per share (non-GAAP)(1)	11.79	11.63	10.90	10.87	10.71

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

“I’m always looking for improvement, but if the next three quarters show positive trends such as this quarter did, I think HOMB is poised for a great year. The period for January to March resulted in increases in net interest income, revenue, EPS, margin (when adjusting for excess liquidity), loans and deposits along with strong liquidity while lowering our efficiency ratio. In addition, we reduced non-interest expense by $3 million, quarter over quarter. Any questions?” said John Allison, Chairman and CEO of HOMB.

Liquidity and Funding Sources

At March 31, 2024, the Company held $2.67 billion in net available internal liquidity. This balance consisted of $1.58 billion in unpledged investment securities which could be used for additional secured borrowing capacity, $924.1 million in cash with the Federal Reserve Bank (FRB) and $160.7 million in other liquid cash accounts.

Consistent with the Company’s practice of maintaining access to significant external liquidity, the Company had $3.11 billion in net available external liquidity as of March 31, 2024. This included $4.75 billion in available liquidity with the Federal Home Loan Bank (FHLB), of which $1.84 billion has been drawn upon in the ordinary course of business, resulting in $2.91 billion in net available liquidity with the FHLB as of March 31, 2024. The $1.84 billion consisted of $600.0 million in outstanding FHLB advances and $1.24 billion used for pledging purposes. The Company also had access to approximately $798.3 million in liquidity with the FRB as of March 31, 2024, of which $700.0 million has been drawn upon in the ordinary course of business, resulting in $98.3 million in net available liquidity with the FRB as of March 31, 2024. As of March 31, 2024, 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 $5.77 billion in net available liquidity as of March 31, 2024, which consisted of $2.67 billion of net available internal liquidity and $3.11 billion in net available external liquidity. Details on the Company’s available liquidity as of March 31, 2024 is available below.


(In thousands)	Total Available		Amount Used		Net Availability
Internal Sources
Unpledged investment securities (market value)	$	1,581,821	$	—	$	1,581,821
Cash at FRB	924,148		—		924,148
Other liquid cash accounts	160,738		—		160,738
Total Internal Liquidity	2,666,707		—		2,666,707
External Sources
FHLB	4,746,613		1,837,367		2,909,246
FRB Discount Window	98,307		—		98,307
BTFP (par value)	700,000		700,000		—
FNBB	55,000		—		55,000
Other	45,000		—		45,000
Total External Liquidity	5,644,920		2,537,367		3,107,553
Total Available Liquidity	$	8,311,627	$	2,537,367	$	5,774,260

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 March 31, 2024, the Company held approximately $8.42 billion in uninsured deposits of which $602.4 million were intercompany subsidiary deposit balances and $3.03 billion were collateralized deposits, for a net position of $4.79 billion. This represents approximately 28.4% of total deposits. In addition, net available liquidity exceeded uninsured and uncollateralized deposits by $987.0 million.


(in thousands)	As of March 31, 2024
Uninsured Deposits	$	8,415,764
Intercompany Subsidiary and Affiliate Balances	602,351
Collateralized Deposits	3,026,129
Net Uninsured Position	$	4,787,284

Total Available Liquidity	$	5,774,260
Net Uninsured Position	4,787,284
Net Available Liquidity in Excess of Uninsured Deposits	$	986,976

In the event the Company’s $4.79 billion net position of uninsured deposits had been called by depositors on the first day of the first quarter of 2024 and the Company utilized available funding, which remained outstanding during the entire quarter, the Company estimates that interest expense would have increased by approximately $71.7 million for the quarter ended March 31, 2024. 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 1.27% for the quarter ended March 31, 2024.

Operating Highlights

Net income for the three-month period ended March 31, 2024 was $100.1 million, or $0.50 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 $99.2 million(1) and $0.49 per share(1), respectively, for the three months ended March 31, 2024.

Our net interest margin was 4.13% for the three-month period ended March 31, 2024, compared to 4.17% for the three-month period ended December 31, 2023. During the first quarter of 2024, the Company held excess liquidity of approximately $500.0 million which was dilutive to the net interest margin by 10 basis points. The yield on loans was 7.37% and 7.20% for the three months ended March 31, 2024 and December 31, 2023, respectively, as average loans increased from $14.34 billion to $14.49 billion. Additionally, the rate on interest bearing deposits increased to 2.93% as of March 31, 2024, from 2.80% as of December 31, 2023, while average interest-bearing deposits increased from $12.48 billion to $12.72 billion.

During the first quarter of 2024, there was $1.1 million of event interest income compared to $120,000 of event interest expense for the fourth quarter of 2023.

Purchase accounting accretion on acquired loans was $2.8 million and $2.3 million and average purchase accounting loan discounts were $24.8 million and $27.4 million for the three-month periods ended March 31, 2024 and December 31, 2023, respectively.

Net interest income on a fully taxable equivalent basis was $205.5 million for the three-month period ended March 31, 2024, and $203.9 million for the three-month period ended December 31, 2023. This increase in net interest income for the three-month period ended March 31, 2024, was the result of a $10.5 million increase in interest income, partially offset by an $8.9 million increase in interest expense. The $10.5 million increase in interest income was primarily the result of a $6.2 million increase in income from interest-bearing balances due from banks and a $5.3 million increase in loan interest income, partially offset by a $1.0 million decrease in investment income. The increase in interest income is a result of the current high interest rate environment. The $8.9 million increase in interest expense was due to a $4.6 million

increase in interest expense on deposits and a $4.4 million increase in interest expense on FHLB and other borrowed funds. The increase in interest expense is also a result of the current high interest rate environment.

The Company reported $41.8 million of non-interest income for the first quarter of 2024. The most important components of first quarter non-interest income were $10.2 million from other service charges and fees, $9.7 million from service charges on deposit accounts, $7.4 million from other income, $5.1 million from trust fees, $3.6 million in mortgage lending income, $3.0 million from dividends from FHLB, FRB, FNBB and other, $1.2 million from the increase in cash value of life insurance and $1.0 million from the fair value adjustment for marketable securities.

Non-interest expense for the first quarter of 2024 was $111.5 million. The most important components of non-interest expense were $60.9 million from salaries and employee benefits, $26.9 million in other operating expense, $14.6 million in occupancy and equipment expenses and $9.1 million in data processing expenses. For the first quarter of 2024, our efficiency ratio was 44.22%, and our efficiency ratio, as adjusted (non-GAAP), was 44.43%(1).

Financial Condition

Total loans receivable were $14.51 billion at March 31, 2024, compared to $14.42 billion at December 31, 2023. Total deposits were $16.87 billion at March 31, 2024, compared to $16.79 billion at December 31, 2023. Total assets were $22.84 billion at March 31, 2024, compared to $22.66 billion at December 31, 2023.

During the first quarter of 2024, the Company experienced approximately $88.9 million in loan growth. Centennial CFG experienced $81.5 million of organic loan growth and had loans of $2.03 billion at March 31, 2024. Our remaining markets experienced $7.4 million in organic loan growth during the quarter.

Non-performing loans to total loans was 0.55% and 0.44% at March 31, 2024 and December 31, 2023, respectively. Non-performing assets to total assets were 0.48% and 0.42% at March 31, 2024 and December 31, 2023, respectively. Net charge-offs were $3.4 million and $3.0 million for the three months ended March 31, 2024 and December 31, 2023, respectively.

Non-performing loans at March 31, 2024 were $17.5 million, $10.6 million, $44.7 million, $408,000, $3.9 million and $2.8 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $80.0 million. Non-performing assets at March 31, 2024 were $17.9 million, $17.9 million, $45.0 million, $408,000, $3.9 million and $25.5 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $110.7 million.

The Company’s allowance for credit losses on loans was $290.3 million at March 31, 2024, or 2.00% of total loans, compared to the allowance for credit losses on loans of $288.2 million, or 2.00% of total loans, at December 31, 2023. As of March 31, 2024 and December 31, 2023, the Company’s allowance for credit losses on loans was 362.94% and 449.66% of its total non-performing loans, respectively.

Stockholders’ equity was $3.81 billion at March 31, 2024, compared to $3.79 billion at December 31, 2023, an increase of approximately $20.3 million. The increase in stockholders’ equity is primarily associated with the $63.9 million increase in retained earnings, partially offset by the $24.0 million in stock repurchases and $22.4 million reduction in accumulated other comprehensive income. Book value per common share was $18.98 at March 31, 2024, compared to $18.81 at December 31, 2023. Tangible book value per common share (non-GAAP) was $11.79(1) at March 31, 2024, compared to $11.63(1) at December 31, 2023.

Branches

The Company currently has 76 branches in Arkansas, 78 branches in Florida, 58 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, April 18, 2024. 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/645372014. 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=b0ede7ae&confId=62290. 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: 421224. A replay of the call will be available by calling 1-866-813-9403, Passcode: 724868, which will be available until April 25, 2024, 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 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 contains forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future, including future financial results. 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 or phrases like “may,” “plan,” “propose,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,” “would,” “on track” 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 or other public health crises, 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, 2023, filed with the SEC on February 26, 2024.

####

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)	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023
ASSETS
Cash and due from banks	$	205,262	$	226,363	$	229,474	$	275,656	$	250,841
Interest-bearing deposits with other banks	969,996		773,850		258,605		335,535		437,213
Cash and cash equivalents	1,175,258		1,000,213		488,079		611,191		688,054
Federal funds sold	5,200		5,100		3,925		1,550		—
Investment securities - available-for-sale, net of allowance for credit losses	3,400,884		3,507,841		3,472,173		3,645,013		3,772,138
Investment securities - held-to-maturity, net of allowance for credit losses	1,280,586		1,281,982		1,283,475		1,285,150		1,286,373
Total investment securities	4,681,470		4,789,823		4,755,648		4,930,163		5,058,511
Loans receivable	14,513,673		14,424,728		14,271,833		14,180,972		14,386,634
Allowance for credit losses	(290,294)		(288,234)		(285,562)		(285,683)		(287,169)
Loans receivable, net	14,223,379		14,136,494		13,986,271		13,895,289		14,099,465
Bank premises and equipment, net	389,618		393,300		397,093		397,315		402,094
Foreclosed assets held for sale	30,650		30,486		691		725		425
Cash value of life insurance	215,424		214,516		213,351		213,090		214,792
Accrued interest receivable	119,029		118,966		110,946		101,066		102,740
Deferred tax asset, net	202,882		197,164		222,741		206,430		193,334
Goodwill	1,398,253		1,398,253		1,398,253		1,398,253		1,398,253
Core deposit intangible	46,630		48,770		51,023		53,500		55,978
Other assets	347,928		323,573		322,617		317,857		304,609
Total assets	$	22,835,721	$	22,656,658	$	21,950,638	$	22,126,429	$	22,518,255
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand and non-interest-bearing	$	4,115,603	$	4,085,501	$	4,280,429	$	4,598,593	$	4,945,729
Savings and interest-bearing transaction accounts	11,047,258		11,050,347		10,786,087		11,169,940		11,392,566
Time deposits	1,703,269		1,651,863		1,452,229		1,228,358		1,107,171
Total deposits	16,866,130		16,787,711		16,518,745		16,996,891		17,445,466
Securities sold under agreements to repurchase	176,107		142,085		160,120		160,349		138,742
FHLB and other borrowed funds	1,301,050		1,301,300		1,001,550		701,550		650,000
Accrued interest payable and other liabilities	241,345		194,653		175,367		173,426		212,887
Subordinated debentures	439,688		439,834		439,982		440,129		440,275
Total liabilities	19,024,320		18,865,583		18,295,764		18,472,345		18,887,370
Stockholders' equity
Common stock	2,008		2,015		2,023		2,026		2,032
Capital surplus	2,326,824		2,348,023		2,363,210		2,366,560		2,375,754
Retained earnings	1,753,994		1,690,112		1,640,171		1,578,176		1,509,400
Accumulated other comprehensive loss	(271,425)		(249,075)		(350,530)		(292,678)		(256,301)
Total stockholders' equity	3,811,401		3,791,075		3,654,874		3,654,084		3,630,885
Total liabilities and stockholders' equity	$	22,835,721	$	22,656,658	$	21,950,638	$	22,126,429	$	22,518,255

Home BancShares, Inc.

Consolidated Statements of Income

(Unaudited)


	Quarter Ended										Three Months Ended
(In thousands)	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Mar 31, 2024		Mar 31, 2023
Interest income:
Loans	$	265,294	$	260,003	$	249,464	$	243,152	$	236,997	$	265,294	$	236,997
Investment securities
Taxable	33,229		34,016		34,520		34,751		35,288		33,229		35,288
Tax-exempt	7,803		7,855		7,868		7,932		7,963		7,803		7,963
Deposits - other banks	10,528		4,281		2,328		3,729		4,685		10,528		4,685
Federal funds sold	61		65		82		68		6		61		6
Total interest income	316,915		306,220		294,262		289,632		284,939		316,915		284,939
Interest expense:
Interest on deposits	92,548		87,971		78,698		70,147		59,162		92,548		59,162
Federal funds purchased	—		—		1		2		—		—		—
FHLB and other borrowed funds	14,276		9,878		8,161		6,596		6,190		14,276		6,190
Securities sold under agreements to repurchase	1,404		1,480		1,344		1,121		868		1,404		868
Subordinated debentures	4,097		4,121		4,121		4,123		4,124		4,097		4,124
Total interest expense	112,325		103,450		92,325		81,989		70,344		112,325		70,344
Net interest income	204,590		202,770		201,937		207,643		214,595		204,590		214,595
Provision for credit losses on loans	5,500		5,650		2,800		2,300		1,200		5,500		1,200
Recovery of credit losses on unfunded commitments	(1,000)		—		(1,500)		—		—		(1,000)		—
Provision for credit losses on investment securities	—		—		—		1,683		—		—		—
Total credit loss expense	4,500		5,650		1,300		3,983		1,200		4,500		1,200
Net interest income after credit loss expense	200,090		197,120		200,637		203,660		213,395		200,090		213,395
Non-interest income:
Service charges on deposit accounts	9,686		10,072		10,062		9,231		9,842		9,686		9,842
Other service charges and fees	10,189		10,422		10,128		11,763		11,875		10,189		11,875
Trust fees	5,066		4,316		4,660		4,052		4,864		5,066		4,864
Mortgage lending income	3,558		2,385		3,132		2,650		2,571		3,558		2,571
Insurance commissions	508		480		562		518		526		508		526
Increase in cash value of life insurance	1,195		1,170		1,170		1,211		1,104		1,195		1,104
Dividends from FHLB, FRB, FNBB & other	3,007		3,010		2,916		2,922		2,794		3,007		2,794
Gain on SBA loans	198		42		97		—		139		198		139
(Loss) gain on branches, equipment and other assets, net	(8)		583		—		917		7		(8)		7
Gain on OREO, net	17		13		—		319		—		17		—

Fair value adjustment for marketable securities	1,003		5,024		4,507		783		(11,408)		1,003		(11,408)
Other income	7,380		5,331		6,179		15,143		11,850		7,380		11,850
Total non-interest income	41,799		42,848		43,413		49,509		34,164		41,799		34,164
Non-interest expense:
Salaries and employee benefits	60,910		63,430		64,512		64,534		64,490		60,910		64,490
Occupancy and equipment	14,551		14,965		15,463		14,923		14,952		14,551		14,952
Data processing expense	9,147		9,107		9,103		9,151		8,968		9,147		8,968

Other operating expenses	26,888		39,673		25,684		27,674		26,234		26,888		26,234
Total non-interest expense	111,496		127,175		114,762		116,282		114,644		111,496		114,644
Income before income taxes	130,393		112,793		129,288		136,887		132,915		130,393		132,915
Income tax expense	30,284		26,550		30,835		31,616		29,953		30,284		29,953
Net income	$	100,109	$	86,243	$	98,453	$	105,271	$	102,962	$	100,109	$	102,962

Home BancShares, Inc.

Selected Financial Information

(Unaudited)


	Quarter Ended															Three Months Ended
(Dollars and shares in thousands, except per share data)	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Mar 31, 2024			Mar 31, 2023
PER SHARE DATA

Diluted earnings per common share	$	0.50		$	0.43		$	0.49		$	0.52		$	0.51		$	0.50		$	0.51
Diluted earnings per common share, as adjusted (non-GAAP)(1)	0.49			0.46			0.47			0.51			0.54			0.49			0.54

Basic earnings per common share	0.50			0.43			0.49			0.52			0.51			0.50			0.51
Dividends per share - common	0.18			0.18			0.18			0.18			0.18			0.18			0.18
Book value per common share	18.98			18.81			18.06			18.04			17.87			18.98			17.87
Tangible book value per common share (non-GAAP)(1)	11.79			11.63			10.90			10.87			10.71			11.79			10.71

STOCK INFORMATION

Average common shares outstanding	201,210			201,756			202,526			202,793			203,456			201,210			203,456
Average diluted shares outstanding	201,390			201,891			202,650			202,923			203,625			201,390			203,625
End of period common shares outstanding	200,797			201,526			202,323			202,573			203,168			200,797			203,168

ANNUALIZED PERFORMANCE METRICS

Return on average assets (ROA)	1.78		%	1.55		%	1.78		%	1.90		%	1.84		%	1.78		%	1.84		%
Return on average assets, as adjusted: (ROA, as adjusted) (non-GAAP)(1)	1.76			1.66			1.72			1.85			1.95			1.76			1.95
Return on average assets excluding intangible amortization (non-GAAP)(1)	1.93			1.69			1.95			2.07			2.00			1.93			2.00
Return on average assets, as adjusted, excluding intangible amortization (non-GAAP)(1)	1.91			1.81			1.87			2.02			2.12			1.91			2.12
Return on average common equity (ROE)	10.64			9.36			10.65			11.63			11.70			10.64			11.70
Return on average common equity, as adjusted: (ROE, as adjusted) (non-GAAP)(1)	10.54			10.00			10.25			11.33			12.38			10.54			12.38
Return on average tangible common equity (ROTCE) (non-GAAP)(1)	17.22			15.49			17.62			19.39			19.75			17.22			19.75
Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) (non-GAAP)(1)	17.07			16.56			16.95			18.90			20.90			17.07			20.90
Return on average tangible common equity excluding intangible amortization (non-GAAP)(1)	17.50			15.80			17.95			19.74			20.11			17.50			20.11
Return on average tangible common equity, as adjusted, excluding intangible amortization (non-GAAP)(1)	17.34			16.87			17.29			19.24			21.26			17.34			21.26

(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															Three Months Ended
(Dollars in thousands)	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Mar 31, 2024			Mar 31, 2023
Efficiency ratio	44.22		%	50.64		%	45.53		%	44.00		%	44.80		%	44.22		%	44.80		%
Efficiency ratio, as adjusted (non-GAAP)(1)	44.43			46.43			46.44			44.83			43.42			44.43			43.42
Net interest margin - FTE (NIM)	4.13			4.17			4.19			4.28			4.37			4.13			4.37

Fully taxable equivalent adjustment	$	892		$	1,091		$	1,293		$	1,494		$	1,628		$	892		$	1,628
Total revenue (net)	246,389			245,618			245,350			257,152			248,759			246,389			248,759
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)	134,893			118,443			130,588			140,870			134,115			134,893			134,115
PPNR, as adjusted (non-GAAP)(1)	133,728			126,402			125,743			137,308			142,062			133,728			142,062
Pre-tax net income to total revenue (net)	52.92		%	45.92		%	52.70		%	53.23		%	53.43		%	52.92		%	53.43		%
Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1)	52.45			49.16			50.72			51.85			56.63			52.45			56.63
P5NR ((Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)	54.75			48.22			53.23			54.78			53.91			54.75			53.91
P5NR, as adjusted (non-GAAP)(1)	54.28			51.46			51.25			53.40			57.11			54.28			57.11
Total purchase accounting accretion	$	2,772		$	2,324		$	2,431		$	2,660		$	3,172		$	2,772		$	3,172
Average purchase accounting loan discounts	24,820			27,397			29,915			32,546			35,482			24,820			35,482

OTHER OPERATING EXPENSES


Advertising	$	1,654		$	2,226		$	2,295		$	2,098		$	2,231		$	1,654		$	2,231
Amortization of intangibles	2,140			2,253			2,477			2,478			2,477			2,140			2,477
Electronic banking expense	3,156			3,599			3,709			3,675			3,330			3,156			3,330
Directors' fees	498			399			417			538			460			498			460
Due from bank service charges	276			274			282			286			273			276			273
FDIC and state assessment	3,318			16,016			2,794			3,220			3,500			3,318			3,500
Insurance	903			873			878			927			889			903			889
Legal and accounting	2,081			1,192			1,514			1,436			1,088			2,081			1,088
Other professional fees	2,236			1,640			2,117			2,774			2,284			2,236			2,284
Operating supplies	683			777			860			763			738			683			738
Postage	523			503			491			586			501			523			501
Telephone	470			515			544			573			528			470			528
Other expense	8,950			9,406			7,306			8,320			7,935			8,950			7,935
Total other operating expenses	$	26,888		$	39,673		$	25,684		$	27,674		$	26,234		$	26,888		$	26,234

(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)	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023
BALANCE SHEET RATIOS
Total loans to total deposits	86.05		%	85.92		%	86.40		%	83.43		%	82.47		%
Common equity to assets	16.69			16.73			16.65			16.51			16.12
Tangible common equity to tangible assets (non-GAAP)(1)	11.06			11.05			10.76			10.65			10.33
LOANS RECEIVABLE
Real estate
Commercial real estate loans
Non-farm/non-residential	$	5,616,965		$	5,549,954		$	5,614,259		$	5,480,738		$	5,524,125
Construction/land development	2,330,555			2,293,047			2,154,030			2,201,514			2,160,514
Agricultural	337,618			325,156			336,160			340,067			342,814
Residential real estate loans
Residential 1-4 family	1,899,974			1,844,260			1,808,248			1,790,218			1,748,231
Multifamily residential	415,926			435,736			444,239			455,754			637,633
Total real estate	10,601,038			10,448,153			10,356,936			10,268,291			10,413,317
Consumer	1,163,228			1,153,690			1,153,461			1,156,273			1,173,325
Commercial and industrial	2,284,775			2,324,991			2,195,678			2,288,646			2,368,428
Agricultural	278,609			307,327			332,608			297,743			250,851
Other	186,023			190,567			233,150			170,019			180,713
Loans receivable	$	14,513,673		$	14,424,728		$	14,271,833		$	14,180,972		$	14,386,634

ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period	$	288,234		$	285,562		$	285,683		$	287,169		$	289,669

Loans charged off	3,978			3,592			3,449			4,726			4,288
Recoveries of loans previously charged off	538			614			528			940			588
Net loans charged off	3,440			2,978			2,921			3,786			3,700

Provision for credit losses - loans	5,500			5,650			2,800			2,300			1,200
Balance, end of period	$	290,294		$	288,234		$	285,562		$	285,683		$	287,169
Net charge-offs to average total loans	0.10		%	0.08		%	0.08		%	0.11		%	0.10		%
Allowance for credit losses to total loans	2.00			2.00			2.00			2.01			2.00
NON-PERFORMING ASSETS
Non-performing loans
Non-accrual loans	$	67,055		$	59,971		$	84,184		$	49,627		$	65,401
Loans past due 90 days or more	12,928			4,130			6,674			10,869			8,567
Total non-performing loans	79,983			64,101			90,858			60,496			73,968
Other non-performing assets
Foreclosed assets held for sale, net	30,650			30,486			691			725			425
Other non-performing assets	63			785			64			64			74
Total other non-performing assets	30,713			31,271			755			789			499
Total non-performing assets	$	110,696		$	95,372		$	91,613		$	61,285		$	74,467
Allowance for credit losses for loans to non-performing loans	362.94		%	449.66		%	314.29		%	472.23		%	388.23		%
Non-performing loans to total loans	0.55			0.44			0.64			0.43			0.51
Non-performing assets to total assets	0.48			0.42			0.42			0.28			0.33

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

Home BancShares, Inc.

Consolidated Net Interest Margin

(Unaudited)


	Three Months Ended
	March 31, 2024						December 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	$	801,456	$	10,528	5.28	%	$	337,821	$	4,281	5.03	%
Federal funds sold	5,012		61		4.90		4,716		65		5.47
Investment securities - taxable	3,473,511		33,229		3.85		3,444,715		34,016		3.92
Investment securities - non-taxable - FTE	1,257,861		8,642		2.76		1,263,567		8,880		2.79
Loans receivable - FTE	14,487,494		265,347		7.37		14,336,613		260,069		7.20
Total interest-earning assets	20,025,334		317,807		6.38		19,387,432		307,311		6.29
Non-earning assets	2,657,925						2,669,008
Total assets	$	22,683,259					$	22,056,440
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	11,038,910	$	75,597	2.75	%	$	10,912,668	$	73,026	2.65	%
Time deposits	1,685,193		16,951		4.05		1,564,682		14,945		3.79
Total interest-bearing deposits	12,724,103		92,548		2.93		12,477,350		87,971		2.80

Securities sold under agreement to repurchase	172,024		1,404		3.28		162,102		1,480		3.62
FHLB and other borrowed funds	1,301,091		14,276		4.41		905,689		9,878		4.33
Subordinated debentures	439,760		4,097		3.75		439,906		4,121		3.72
Total interest-bearing liabilities	14,636,978		112,325		3.09		13,985,047		103,450		2.93
Non-interest bearing liabilities
Non-interest bearing deposits	4,017,659						4,212,665
Other liabilities	244,970						202,008
Total liabilities	18,899,607						18,399,720
Shareholders' equity	3,783,652						3,656,720
Total liabilities and shareholders' equity	$	22,683,259					$	22,056,440
Net interest spread					3.29	%					3.36	%
Net interest income and margin - FTE			$	205,482	4.13				$	203,861	4.17

Home BancShares, Inc.

Consolidated Net Interest Margin

(Unaudited)


	Three Months Ended
	March 31, 2024						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	$	801,456	$	10,528	5.28	%	$	426,051	$	4,685	4.46	%
Federal funds sold	5,012		61		4.90		474		6		5.13
Investment securities - taxable	3,473,511		33,229		3.85		3,867,737		35,288		3.70
Investment securities - non-taxable - FTE	1,257,861		8,642		2.76		1,289,564		9,482		2.98
Loans receivable - FTE	14,487,494		265,347		7.37		14,474,072		237,106		6.64
Total interest-earning assets	20,025,334		317,807		6.38		20,057,898		286,567		5.79
Non-earning assets	2,657,925						2,637,957
Total assets	$	22,683,259					$	22,695,855
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	11,038,910	$	75,597	2.75	%	$	11,579,329	$	54,857	1.92	%
Time deposits	1,685,193		16,951		4.05		1,072,094		4,305		1.63
Total interest-bearing deposits	12,724,103		92,548		2.93		12,651,423		59,162		1.90

Securities sold under agreement to repurchase	172,024		1,404		3.28		134,934		868		2.61
FHLB and other borrowed funds	1,301,091		14,276		4.41		651,111		6,190		3.86
Subordinated debentures	439,760		4,097		3.75		440,346		4,124		3.80
Total interest-bearing liabilities	14,636,978		112,325		3.09		13,877,814		70,344		2.06
Non-interest bearing liabilities
Non-interest bearing deposits	4,017,659						5,043,219
Other liabilities	244,970						205,230
Total liabilities	18,899,607						19,126,263
Shareholders' equity	3,783,652						3,569,592
Total liabilities and shareholders' equity	$	22,683,259					$	22,695,855
Net interest spread					3.29	%					3.73	%
Net interest income and margin - FTE			$	205,482	4.13				$	216,223	4.37

Home BancShares, Inc.

Non-GAAP Reconciliations

(Unaudited)


	Quarter Ended															Three Months Ended
(Dollars and shares in thousands, except per share data)	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Mar 31, 2024			Mar 31, 2023
EARNINGS, AS ADJUSTED
GAAP net income available to common shareholders (A)	$	100,109		$	86,243		$	98,453		$	105,271		$	102,962		$	100,109		$	102,962
Pre-tax adjustments
FDIC special assessment	—			12,983			—			—			—			—			—
BOLI death benefits	(162)			—			(338)			(2,779)			—			(162)			—


Fair value adjustment for marketable securities	(1,003)			(5,024)			(4,507)			(783)			11,408			(1,003)			11,408



Recoveries on historic losses	—			—			—			—			(3,461)			—			(3,461)

Total pre-tax adjustments	(1,165)			7,959			(4,845)			(3,562)			7,947			(1,165)			7,947
Tax-effect of adjustments	(251)			1,989			(1,112)			(879)			1,961			(251)			1,961
Total adjustments after-tax (B)	(914)			5,970			(3,733)			(2,683)			5,986			(914)			5,986
Earnings, as adjusted (C)	$	99,195		$	92,213		$	94,720		$	102,588		$	108,948		$	99,195		$	108,948

Average diluted shares outstanding (D)	201,390			201,891			202,650			202,923			203,625			201,390			203,625

GAAP diluted earnings per share: (A/D)	$	0.50		$	0.43		$	0.49		$	0.52		$	0.51		$	0.50		$	0.51
Adjustments after-tax: (B/D)	(0.01)			0.03			(0.02)			(0.01)			0.03			(0.01)			0.03
Diluted earnings per common share, as adjusted: (C/D)	$	0.49		$	0.46		$	0.47		$	0.51		$	0.54		$	0.49		$	0.54











ANNUALIZED RETURN ON AVERAGE ASSETS
Return on average assets: (A/E)	1.78		%	1.55		%	1.78		%	1.90		%	1.84		%	1.78		%	1.84		%
Return on average assets, as adjusted: (ROA, as adjusted) ((A+D)/E)	1.76			1.66			1.72			1.85			1.95			1.76			1.95
Return on average assets excluding intangible amortization: ((A+C)/(E-F))	1.93			1.69			1.95			2.07			2.00			1.93			2.00
Return on average assets, as adjusted, excluding intangible amortization: ((A+C+D)/(E-F))	1.91			1.81			1.87			2.02			2.12			1.91			2.12

GAAP net income available to common shareholders (A)	$	100,109		$	86,243		$	98,453		$	105,271		$	102,962		$	100,109		$	102,962
Amortization of intangibles (B)	2,140			2,253			2,477			2,478			2,477			2,140			2,477
Amortization of intangibles after-tax (C)	1,605			1,690			1,866			1,866			1,866			1,605			1,866
Adjustments after-tax (D)	(914)			5,970			(3,733)			(2,683)			5,986			(914)			5,986
Average assets (E)	22,683,259			22,056,440			21,902,434			22,227,404			22,695,855			22,683,259			22,695,855
Average goodwill & core deposit intangible (F)	1,445,902			1,448,061			1,450,478			1,452,951			1,455,423			1,445,902			1,455,423

Home BancShares, Inc.

Non-GAAP Reconciliations

(Unaudited)


	Quarter Ended															Three Months Ended
(Dollars in thousands)	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Mar 31, 2024			Mar 31, 2023
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY
Return on average common equity: (A/D)	10.64		%	9.36		%	10.65		%	11.63		%	11.70		%	10.64		%	11.70		%
Return on average common equity, as adjusted: (ROE, as adjusted) ((A+C)/D)	10.54			10.00			10.25			11.33			12.38			10.54			12.38
Return on average tangible common equity: (A/(D-E))	17.22			15.49			17.62			19.39			19.75			17.22			19.75
Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) ((A+C)/(D-E))	17.07			16.56			16.95			18.90			20.90			17.07			20.90
Return on average tangible common equity excluding intangible amortization: (B/(D-E))	17.50			15.80			17.95			19.74			20.11			17.50			20.11
Return on average tangible common equity, as adjusted, excluding intangible amortization: ((B+C)/(D-E))	17.34			16.87			17.29			19.24			21.26			17.34			21.26

GAAP net income available to common shareholders (A)	$	100,109		$	86,243		$	98,453		$	105,271		$	102,962		$	100,109		$	102,962
Earnings excluding intangible amortization (B)	101,714			87,933			100,319			107,137			104,828			101,714			104,828
Adjustments after-tax (C)	(914)			5,970			(3,733)			(2,683)			5,986			(914)			5,986
Average common equity (D)	3,783,652			3,656,720			3,667,339			3,630,194			3,569,592			3,783,652			3,569,592
Average goodwill & core deposits intangible (E)	1,445,902			1,448,061			1,450,478			1,452,951			1,455,423			1,445,902			1,455,423
EFFICIENCY RATIO & P5NR
Efficiency ratio: ((D-G)/(B+C+E))	44.22		%	50.64		%	45.53		%	44.00		%	44.80		%	44.22		%	44.80		%
Efficiency ratio, as adjusted: ((D-G-I)/(B+C+E-H))	44.43			46.43			46.44			44.83			43.42			44.43			43.42
Pre-tax net income to total revenue (net) (A/(B+C))	52.92			45.92			52.70			53.23			53.43			52.92			53.43
Pre-tax net income, as adjusted, to total revenue (net) ((A+F)/(B+C))	52.45			49.16			50.72			51.85			56.63			52.45			56.63
Pre-tax, pre-provision, net income (PPNR) (B+C-D)	$	134,893		$	118,443		$	130,588		$	140,870		$	134,115		$	134,893		$	134,115
Pre-tax, pre-provision, net income, as adjusted (B+C-D+F)	133,728			126,402			125,743			137,308			142,062			133,728			142,062
P5NR ((Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C)	54.75		%	48.22		%	53.23		%	54.78		%	53.91		%	54.75		%	53.91		%
P5NR, as adjusted (B+C-D+F-G)/(B+C)	54.28			51.46			51.25			53.40			57.11			54.28			57.11

Pre-tax net income (A)	$	130,393		$	112,793		$	129,288		$	136,887		$	132,915		$	130,393		$	132,915
Net interest income (B)	204,590			202,770			201,937			207,643			214,595			204,590			214,595
Non-interest income (C)	41,799			42,848			43,413			49,509			34,164			41,799			34,164
Non-interest expense (D)	111,496			127,175			114,762			116,282			114,644			111,496			114,644
Fully taxable equivalent adjustment (E)	892			1,091			1,293			1,494			1,628			892			1,628
Total pre-tax adjustments (F)	(1,165)			7,959			(4,845)			(3,562)			7,947			(1,165)			7,947

Amortization of intangibles (G)	2,140			2,253			2,477			2,478			2,477			2,140			2,477
Adjustments:
Non-interest income:
Fair value adjustment for marketable securities	$	1,003		$	5,024		$	4,507		$	783		$	(11,408)		$	1,003		$	(11,408)
Gain on OREO	17			13			—			319			—			17			—
(Loss) gain on branches, equipment and other assets, net	(8)			583			—			917			7			(8)			7


BOLI death benefits	162			—			338			2,779			—			162			—
Recoveries on historic losses	—			—			—			—			3,461			—			3,461
Total non-interest income adjustments (H)	$	1,174		$	5,620		$	4,845		$	4,798		$	(7,940)		$	1,174		$	(7,940)
Non-interest expense:
FDIC special assessment	—			12,983			—			—			—			—			—




Total non-interest expense adjustments (I)	$	—		$	12,983		$	—		$	—		$	—		$	—		$	—

Home BancShares, Inc.

Non-GAAP Reconciliations

(Unaudited)


	Quarter Ended
	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023
TANGIBLE BOOK VALUE PER COMMON SHARE
Book value per common share: (A/B)	$	18.98		$	18.81		$	18.06		$	18.04		$	17.87
Tangible book value per common share: ((A-C-D)/B)	11.79			11.63			10.90			10.87			10.71

Total stockholders' equity (A)	$	3,811,401		$	3,791,075		$	3,654,874		$	3,654,084		$	3,630,885
End of period common shares outstanding (B)	200,797			201,526			202,323			202,573			203,168
Goodwill (C)	1,398,253			1,398,253			1,398,253			1,398,253			1,398,253
Core deposit and other intangibles (D)	46,630			48,770			51,023			53,500			55,978
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
Equity to assets: (B/A)	16.69		%	16.73		%	16.65		%	16.51		%	16.12		%
Tangible common equity to tangible assets: ((B-C-D)/(A-C-D))	11.06			11.05			10.76			10.65			10.33

Total assets (A)	$	22,835,721		$	22,656,658		$	21,950,638		$	22,126,429		$	22,518,255
Total stockholders' equity (B)	3,811,401			3,791,075			3,654,874			3,654,084			3,630,885
Goodwill (C)	1,398,253			1,398,253			1,398,253			1,398,253			1,398,253
Core deposit and other intangibles (D)	46,630			48,770			51,023			53,500			55,978