Results of West Texas Headwinds and FDIC Surprise 4th Quarter Assessment Only Things Standing Between HOMB and Expected 2023 Goal of $400 Million Plus

ソース: Nasdaq GlobeNewswire / 18 1 2024 08:15:02 America/New_York

CONWAY, Ark., Jan. 18, 2024 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NYSE: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.

Quarterly Highlights

Metric	Q4 2023	Q3 2023	Q2 2023	Q1 2023	Q4 2022
Net income	$86.2 million	$98.5 million	$105.3 million	$103.0 million	$115.7 million
Total revenue (net)	$245.6 million	$245.4 million	$257.2 million	$248.8 million	$272.3 million
Income before income taxes	$112.8 million	$129.3 million	$136.9 million	$132.9 million	$148.4 million
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)⁽¹⁾	$118.4 million	$130.6 million	$140.9 million	$134.1 million	$153.4 million
Pre-tax net income to total revenue (net)	45.92%	52.70%	53.23%	53.43%	54.50%
P5_NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)⁽¹⁾	48.22%	53.23%	54.78%	53.91%	56.34%
ROA	1.55%	1.78%	1.90%	1.84%	1.98%
NIM	4.17%	4.19%	4.28%	4.37%	4.21%
Purchase accounting accretion	$2.3 million	$2.4 million	$2.7 million	$3.2 million	$3.5 million
ROE	9.36%	10.65%	11.63%	11.70%	13.29%
ROTCE (non-GAAP)⁽¹⁾	15.49%	17.62%	19.39%	19.75%	22.96%
Diluted earnings per share	$0.43	$0.49	$0.52	$0.51	$0.57
Diluted earnings per shares, excluding FDIC special assessment (non-GAAP)⁽¹⁾	0.48	0.49	0.52	0.51	0.57
Non-performing assets to total assets	0.42%	0.42%	0.28%	0.33%	0.27%
Common equity tier 1 capital	14.2%	14.0%	13.6%	13.2%	12.9%
Leverage	12.4%	12.4%	11.9%	11.4%	10.9%
Tier 1 capital	14.2%	14.0%	13.6%	13.2%	12.9%
Total risk-based capital	17.8%	17.6%	17.3%	16.8%	16.5%
Allowance for credit losses to total loans	2.00%	2.00%	2.01%	2.00%	2.01%
Book value per share	$18.81	$18.06	$18.04	$17.87	$17.33
Tangible book value per share (non-GAAP)⁽¹⁾	11.63	10.90	10.87	10.71	10.17

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

“2023 was a tough year for the banking sector. For HOMB, the biggest obstacles came in the form of the loss of income as a result of the actions from some individuals in West Texas that may prove to be unethical and potentially criminal. In addition, the FDIC 4th quarter surprise assessment to financial institutions to recover losses from failed banks, resulted in $13 million ($0.05 per share) expense for Home BancShares. Both of these events were out of HOMB’s control, and the first event is a matter for the court, so we won’t speculate on the damage. The second one we know is $0.05 per share. Excluding these events, I’m proud to say that we would have beat our goal of $400 million plus and earned over $2.00 per share,” said John Allison, Chairman and CEO of HOMB.

Liquidity and Funding Sources

At December 31, 2023, the Company held $2.12 billion in net available internal liquidity. This balance consisted of $1.21 billion in unpledged investment securities which could be used for additional secured borrowing capacity, $732.4 million in cash with the Federal Reserve Bank (FRB) and $177.2 million in other liquid cash accounts.

Consistent with the Company’s practice of maintaining access to significant external liquidity, the Company had $3.47 billion in net available external liquidity as of December 31, 2023. This included $4.63 billion in available liquidity with the Federal Home Loan Bank (FHLB), of which $1.93 billion has been drawn upon in the ordinary course of business, resulting in $2.69 billion in net available liquidity with the FHLB as of December 31, 2023. The $1.93 billion consisted of $600.0 million in outstanding FHLB advances and $1.33 billion used for pledging purposes. The Company also had access to approximately $1.37 billion in liquidity with the FRB as of December 31, 2023, of which $700.0 million has been drawn upon in the ordinary course of business, resulting in $674.3 million in net available liquidity with the FRB as of December 31, 2023. The $674.3 million consisted of $89.8 million available from the Discount Window and $584.5 million available through the Bank Term Funding Program (BTFP). As of December 31, 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 $5.59 billion in net available liquidity as of December 31, 2023, which consisted of $2.12 billion of net available internal liquidity and $3.47 billion in net available external liquidity. Details on the Company’s available liquidity as of December 31, 2023 is available below.

(In thousands)	Total Available		Amount Used		Net Availability
Internal Sources
Unpledged investment securities (market value)	$	1,214,352	$	—	$	1,214,352
Cash at FRB		732,412		—		732,412
Other liquid cash accounts		177,191		—		177,191
Total Internal Liquidity		2,123,955		—		2,123,955
External Sources
FHLB		4,625,496		1,932,490		2,693,006
FRB Discount Window		89,823		—		89,823
BTFP (par value)		1,284,507		700,000		584,507
FNBB		55,000		—		55,000
Other		45,000		—		45,000
Total External Liquidity		6,099,826		2,632,490		3,467,336
Total Available Liquidity	$	8,223,781	$	2,632,490	$	5,591,291

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 December 31, 2023, the Company held approximately $8.34 billion in uninsured deposits of which $595.5 million were intercompany subsidiary deposit balances and $3.03 billion were collateralized deposits, for a net position of $4.72 billion. This represents approximately 28.1% of total deposits. In addition, net available liquidity exceeded uninsured and uncollateralized deposits by $867.6 million.

(in thousands)	As of December 31, 2023
Uninsured Deposits	$	8,344,570
Intercompany Subsidiary and Affiliate Balances		595,539
Collateralized Deposits		3,025,358
Net Uninsured Position	$	4,723,673

Total Available Liquidity	$	5,591,291
Net Uninsured Position		4,723,673
Net Available Liquidity in Excess of Uninsured Deposits	$	867,618

In the event the Company’s $4.72 billion net position of uninsured deposits had been called by depositors on the first day of the fourth quarter of 2023 and the Company utilized available BTFP funding, which remained outstanding during the entire quarter, the Company estimates that interest expense would have increased by approximately $57.6 million for the quarter ended December 31, 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 1.05% for the quarter ended December 31, 2023.

Operating Highlights

Net income for the three-month period ended December 31, 2023 was $86.2 million, or $0.43 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 $92.2 million⁽¹⁾, and $0.46 per share⁽¹⁾, respectively, for the three months ended December 31, 2023. The $13.0 million Federal Deposit Insurance Corporation (FDIC) assessment resulted in a $0.05 reduction to earnings per share. When adjusting solely for the FDIC assessment, net income (non-GAAP) would have been $96.0 million⁽¹⁾, or $0.48 diluted earnings per share⁽¹⁾.

Our net interest margin was 4.17% for the three-month period ended December 31, 2023, compared to 4.19% for the three-month period ended September 30, 2023. The yield on loans was 7.20% and 6.98% for the three months ended December 31, 2023 and September 30, 2023, respectively, as average loans increased from $14.19 billion to $14.34 billion. Additionally, the rate on interest bearing deposits increased to 2.80% as of December 31, 2023, from 2.55% as of September 30, 2023, while average interest-bearing deposits increased from $12.24 billion to $12.48 billion.

During the fourth quarter of 2023, there was $120,000 of event interest income compared to $521,000 of event interest expense for the third quarter of 2023.

Purchase accounting accretion on acquired loans was $2.3 million and $2.4 million and average purchase accounting loan discounts were $27.4 million and $29.9 million for the three-month periods ended December 31, 2023 and September 30, 2023, respectively.

Net interest income on a fully taxable equivalent basis was $203.9 million for the three-month period ended December 31, 2023, and $203.2 million for the three-month period ended September 30, 2023. This increase in net interest income for the three-month period ended December 31, 2023, was the result of an $11.8 million increase in interest income, partially offset by an $11.1 million increase in interest expense. The $11.8 million increase in interest income was primarily the result of a $10.5 million increase in loan interest income and a $2.0 million increase in income from interest-bearing balances due from banks, partially offset by a $658,000 decrease in investment income. The increase in interest income is a result of the current high interest rate environment. The $11.1 million increase in interest expense was due to a $9.3 million increase in interest expense on deposits, a $1.7 million increase in interest expense on FHLB and other borrowed funds and a $136,000 increase in interest expense on securities sold under agreement to repurchase. The increase in interest expense is also a result of the current high interest rate environment.

The Company reported $42.8 million of non-interest income for the fourth quarter of 2023. The most important components of fourth quarter non-interest income were $10.4 million from other service charges and fees, $10.1 million from service charges on deposit accounts, $5.3 million from other income, $5.0 million from the fair value adjustment for marketable securities, $4.3 million from trust fees, $3.0 million from dividends from FHLB, FRB, FNBB and other, $2.4 million in mortgage lending income and $1.2 million from the increase in cash value of life insurance.

Non-interest expense for the fourth quarter of 2023 was $127.2 million. The most important components of non-interest expense were $63.4 million from salaries and employee benefits, $39.7 million in other operating expense, $15.0 million in occupancy and equipment expenses and $9.1 million in data processing expenses. Included within other operating expenses was $13.0 million in FDIC special assessment expense which was levied in order to recover the losses to the Deposit Insurance Fund associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank. For the fourth quarter of 2023, our efficiency ratio was 50.64%, and our efficiency ratio, as adjusted (non-GAAP), was 46.43%⁽¹⁾_.

Financial Condition

Total loans receivable were $14.42 billion at December 31, 2023, compared to $14.27 billion at September 30, 2023. Total deposits were $16.79 billion at December 31, 2023, compared to $16.52 billion at September 30, 2023. Total assets were $22.66 billion at December 31, 2023, compared to $21.95 billion at September 30, 2023.

During the fourth quarter of 2023, the Company experienced approximately $152.9 million in loan growth. Centennial CFG experienced $61.5 million of organic loan decline and had loans of $1.95 billion at December 31, 2023. Our remaining markets experienced $214.4 million in organic loan growth during the quarter.

Non-performing loans to total loans was 0.44% and 0.64% at December 31, 2023 and September 30, 2023, respectively. Non-performing assets to total assets was 0.42% at both December 31, 2023 and September 30, 2023. Net charge-offs were $3.0 million and $2.9 million for the three months ended December 31, 2023 and September 30, 2023, respectively.

Non-performing loans at December 31, 2023 were $15.4 million, $9.3 million, $33.5 million, $413,000, $2.8 million and $2.7 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $64.1 million. Non-performing assets at December 31, 2023 were $15.5 million, $17.3 million, $33.8 million, $413,000, $2.8 million and $25.6 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $95.4 million.

The Company’s allowance for credit losses on loans was $288.2 million at December 31, 2023, or 2.00% of total loans, compared to the allowance for credit losses on loans of $285.6 million, or 2.00% of total loans, at September 30, 2023. As of December 31, 2023 and September 30, 2023, the Company’s allowance for credit losses on loans was 449.66% and 314.29% of its total non-performing loans, respectively.

Stockholders’ equity was $3.79 billion at December 31, 2023, compared to $3.65 billion at September 30, 2023, an increase of approximately $136.2 million. The increase in stockholders’ equity is primarily associated with the $101.5 million improvement in accumulated other comprehensive loss and the $49.9 million increase in retained earnings, partially offset by the $17.8 million in stock repurchases. Book value per common share was $18.81 at December 31, 2023, compared to $18.06 at September 30, 2023. Tangible book value per common share (non-GAAP) was $11.63⁽¹⁾ at December 31, 2023, compared to $10.90⁽¹⁾ at September 30, 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, January 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/569988317. 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=d3aae28a&confId=59075. 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: 335279. A replay of the call will be available by calling 1-866-813-9403, Passcode: 758279, which will be available until January 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, 2022, filed with the SEC on February 24, 2023 and our Quarterly Reports on Form 10-Q for the periods ended March 31, 2023, June 30, 2023 and September 30, 2023, filed with the SEC on May 5, 2023, August 4, 2023 and November 6, 2023, respectively.

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)	Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022
ASSETS

Cash and due from banks	$	226,363		$	229,474		$	275,656		$	250,841		$	263,893
Interest-bearing deposits with other banks		773,850			258,605			335,535			437,213			460,897
Cash and cash equivalents		1,000,213			488,079			611,191			688,054			724,790
Federal funds sold		5,100			3,925			1,550			—			—
Investment securities - available-for-sale, net of allowance for credit losses		3,507,841			3,472,173			3,645,013			3,772,138			4,041,590
Investment securities - held-to-maturity, net of allowance for credit losses		1,281,982			1,283,475			1,285,150			1,286,373			1,287,705
Total investment securities		4,789,823			4,755,648			4,930,163			5,058,511			5,329,295
Loans receivable		14,424,728			14,271,833			14,180,972			14,386,634			14,409,480
Allowance for credit losses		(288,234	)		(285,562	)		(285,683	)		(287,169	)		(289,669	)
Loans receivable, net		14,136,494			13,986,271			13,895,289			14,099,465			14,119,811
Bank premises and equipment, net		393,300			397,093			397,315			402,094			405,073
Foreclosed assets held for sale		30,486			691			725			425			546
Cash value of life insurance		214,516			213,351			213,090			214,792			213,693
Accrued interest receivable		118,966			110,946			101,066			102,740			103,199
Deferred tax asset, net		197,164			222,741			206,430			193,334			209,321
Goodwill		1,398,253			1,398,253			1,398,253			1,398,253			1,398,253
Core deposit intangible		48,770			51,023			53,500			55,978			58,455
Other assets		323,573			322,617			317,857			304,609			321,152
Total assets	$	22,656,658		$	21,950,638		$	22,126,429		$	22,518,255		$	22,883,588

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities
Deposits:
Demand and non-interest-bearing	$	4,085,501		$	4,280,429		$	4,598,593		$	4,945,729		$	5,164,997
Savings and interest-bearing transaction accounts		11,050,347			10,786,087			11,169,940			11,392,566			11,730,552
Time deposits		1,651,863			1,452,229			1,228,358			1,107,171			1,043,234
Total deposits		16,787,711			16,518,745			16,996,891			17,445,466			17,938,783
Securities sold under agreements to repurchase		142,085			160,120			160,349			138,742			131,146
FHLB and other borrowed funds		1,301,300			1,001,550			701,550			650,000			650,000
Accrued interest payable and other liabilities		194,653			175,367			173,426			212,887			196,877
Subordinated debentures		439,834			439,982			440,129			440,275			440,420
Total liabilities		18,865,583			18,295,764			18,472,345			18,887,370			19,357,226

Stockholders' equity
Common stock		2,015			2,023			2,026			2,032			2,034
Capital surplus		2,348,023			2,363,210			2,366,560			2,375,754			2,386,699
Retained earnings		1,690,112			1,640,171			1,578,176			1,509,400			1,443,087
Accumulated other comprehensive loss		(249,075	)		(350,530	)		(292,678	)		(256,301	)		(305,458	)
Total stockholders' equity		3,791,075			3,654,874			3,654,084			3,630,885			3,526,362
Total liabilities and stockholders' equity	$	22,656,658		$	21,950,638		$	22,126,429		$	22,518,255		$	22,883,588

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

	Quarter Ended												Year Ended
(In thousands)	Dec. 31, 2023		Sep. 30, 2023			Jun. 30, 2023		Mar. 31, 2023			Dec. 31, 2022		Dec. 31, 2023			Dec. 31, 2022
Interest income:
Loans	$	260,003	$	249,464		$	243,152	$	236,997		$	221,280	$	989,616		$	728,342
Investment securities
Taxable		34,016		34,520			34,751		35,288			33,639		138,575			91,933
Tax-exempt		7,855		7,868			7,932		7,963			7,855		31,618			28,356
Deposits - other banks		4,281		2,328			3,729		4,685			10,109		15,023			29,110
Federal funds sold		65		82			68		6			12		221			25
Total interest income		306,220		294,262			289,632		284,939			272,895		1,175,053			877,766
Interest expense:
Interest on deposits		87,971		78,698			70,147		59,162			47,019		295,978			85,989
Federal funds purchased		—		1			2		—			—		3			2
FHLB and other borrowed funds		9,878		8,161			6,596		6,190			5,388		30,825			11,076
Securities sold under agreements to repurchase		1,480		1,344			1,121		868			701		4,813			1,430
Subordinated debentures		4,121		4,121			4,123		4,124			4,121		16,489			20,593
Total interest expense		103,450		92,325			81,989		70,344			57,229		348,108			119,090
Net interest income		202,770		201,937			207,643		214,595			215,666		826,945			758,676
Provision for credit losses on loans		5,650		2,800			2,300		1,200			5,000		11,950			50,170
(Recovery of) provision for credit losses on unfunded commitments		—		(1,500	)		—		—			—		(1,500	)		11,410
Provision for credit losses on investment securities		—		—			1,683		—			—		1,683			2,005
Total credit loss expense		5,650		1,300			3,983		1,200			5,000		12,133			63,585
Net interest income after credit loss expense		197,120		200,637			203,660		213,395			210,666		814,812			695,091
Non-interest income:
Service charges on deposit accounts		10,072		10,062			9,231		9,842			10,134		39,207			37,114
Other service charges and fees		10,422		10,128			11,763		11,875			10,363		44,188			44,588
Trust fees		4,316		4,660			4,052		4,864			3,981		17,892			12,855
Mortgage lending income		2,385		3,132			2,650		2,571			3,566		10,738			17,657
Insurance commissions		480		562			518		526			453		2,086			2,192
Increase in cash value of life insurance		1,170		1,170			1,211		1,104			1,079		4,655			3,800
Dividends from FHLB, FRB, FNBB & other		3,010		2,916			2,922		2,794			2,814		11,642			9,198
Gain on SBA loans		42		97			—		139			30		278			183
Gain on branches, equipment and other assets, net		583		—			917		7			10		1,507			15
Gain on OREO, net		13		—			319		—			13		332			500
Gain on securities, net		—		—			—		—			—		—			—
Fair value adjustment for marketable securities		5,024		4,507			783		(11,408	)		1,032		(1,094	)		(1,272	)
Other income		5,331		6,179			15,143		11,850			23,185		38,503			48,281
Total non-interest income		42,848		43,413			49,509		34,164			56,660		169,934			175,111
Non-interest expense:
Salaries and employee benefits		63,430		64,512			64,534		64,490			64,249		256,966			238,885
Occupancy and equipment		14,965		15,463			14,923		14,952			14,884		60,303			53,417
Data processing expense		9,107		9,103			9,151		8,968			9,062		36,329			34,942
Merger and acquisition expenses		—		—			—		—			—		—			49,594
Other operating expenses		39,673		25,684			27,674		26,234			30,708		119,265			98,789
Total non-interest expense		127,175		114,762			116,282		114,644			118,903		472,863			475,627
Income before income taxes		112,793		129,288			136,887		132,915			148,423		511,883			394,575
Income tax expense		26,550		30,835			31,616		29,953			32,736		118,954			89,313
Net income	$	86,243	$	98,453		$	105,271	$	102,962		$	115,687	$	392,929		$	305,262

Home BancShares, Inc.
Selected Financial Information
(Unaudited)

	Quarter Ended															Year Ended
(Dollars and shares in thousands, except per share data)	Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Dec. 31, 2023			Dec. 31, 2022
PER SHARE DATA
Diluted earnings per common share	$	0.43		$	0.49		$	0.52		$	0.51		$	0.57		$	1.94		$	1.57
Diluted earnings per common share, as adjusted (non-GAAP)⁽¹⁾		0.46			0.47			0.51			0.54			0.53			1.97			1.93
Diluted earnings per common share, excluding FDIC special assessment (non-GAAP)⁽¹⁾		0.48			0.49			0.52			0.51			0.57			1.99			1.57
Basic earnings per common share		0.43			0.49			0.52			0.51			0.57			1.94			1.57
Dividends per share - common		0.18			0.18			0.18			0.18			0.165			0.72			0.66
Book value per common share		18.81			18.06			18.04			17.87			17.33			18.81			17.33
Tangible book value per common share (non-GAAP)⁽¹⁾		11.63			10.90			10.87			10.71			10.17			11.63			10.17

STOCK INFORMATION
Average common shares outstanding		201,756			202,526			202,793			203,456			203,924			202,627			194,694
Average diluted shares outstanding		201,891			202,650			202,923			203,625			204,179			202,773			195,019
End of period common shares outstanding		201,526			202,323			202,573			203,168			203,434			201,526			203,434

ANNUALIZED PERFORMANCE METRICS
Return on average assets (ROA)		1.55	%		1.78	%		1.90	%		1.84	%		1.98	%		1.77	%		1.35	%
Return on average assets, as adjusted: (ROA, as adjusted) (non-GAAP)⁽¹⁾		1.66	%		1.72	%		1.85	%		1.95	%		1.84	%		1.79	%		1.67	%
Return on average assets excluding intangible amortization (non-GAAP)⁽¹⁾		1.69	%		1.95	%		2.07	%		2.00	%		2.15	%		1.93	%		1.47	%
Return on average assets, as adjusted, excluding intangible amortization (non-GAAP)⁽¹⁾		1.81	%		1.87	%		2.02	%		2.12	%		2.00	%		1.95	%		1.80	%
Return on average common equity (ROE)		9.36	%		10.65	%		11.63	%		11.70	%		13.29	%		10.82	%		9.17	%
Return on average common equity, as adjusted: (ROE, as adjusted) (non-GAAP)⁽¹⁾		10.00	%		10.25	%		11.33	%		12.38	%		12.35	%		10.97	%		11.29	%
Return on average tangible common equity (ROTCE) (non-GAAP)⁽¹⁾		15.49	%		17.62	%		19.39	%		19.75	%		22.96	%		18.03	%		15.30	%
Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) (non-GAAP)⁽¹⁾		16.56	%		16.95	%		18.90	%		20.90	%		21.33	%		18.28	%		18.84	%
Return on average tangible common equity excluding intangible amortization (non-GAAP)⁽¹⁾		15.80	%		17.95	%		19.74	%		20.11	%		23.33	%		18.36	%		15.63	%
Return on average tangible common equity, as adjusted, excluding intangible amortization (non-GAAP)⁽¹⁾		16.87	%		17.29	%		19.24	%		21.26	%		21.70	%		18.62	%		19.17	%

(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															Year Ended
(Dollars in thousands)	Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Dec. 31, 2023			Dec. 31, 2022
Efficiency ratio		50.64	%		45.53	%		44.00	%		44.80	%		42.44	%		46.21	%		49.53	%
Efficiency ratio, as adjusted (non-GAAP)⁽¹⁾		46.43	%		46.44	%		44.83	%		43.42	%		43.07	%		45.24	%		44.55	%
Net interest margin - FTE (NIM)		4.17	%		4.19	%		4.28	%		4.37	%		4.21	%		4.25	%		3.81	%
Fully taxable equivalent adjustment	$	1,091		$	1,293		$	1,494		$	1,628		$	2,017		$	5,506		$	8,663
Total revenue (net)		245,618			245,350			257,152			248,759			272,326			996,879			933,787
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)⁽¹⁾		118,443			130,588			140,870			134,115			153,423			524,016			458,160
PPNR, as adjusted (non-GAAP)⁽¹⁾		126,402			125,743			137,308			142,062			142,567			531,515			493,143
Pre-tax net income to total revenue (net)		45.92	%		52.70	%		53.23	%		53.43	%		54.50	%		51.35	%		42.26	%
Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)⁽¹⁾		49.16	%		50.72	%		51.85	%		56.63	%		50.52	%		52.10	%		52.28	%
P5_NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)⁽¹⁾		48.22	%		53.23	%		54.78	%		53.91	%		56.34	%		52.57	%		49.06	%
P5_NR, as adjusted (non-GAAP)⁽¹⁾		51.46	%		51.25	%		53.40	%		57.11	%		52.35	%		53.32	%		52.81	%
Total purchase accounting accretion	$	2,324		$	2,431		$	2,660		$	3,172		$	3,497		$	10,587		$	16,341
Average purchase accounting loan discounts		27,397			29,915			32,546			35,482			38,552			31,334			38,055

OTHER OPERATING EXPENSES
Hurricane expense	$	—		$	—		$	—		$	—		$	176		$	—		$	176
Advertising		2,226			2,295			2,098			2,231			2,567			8,850			7,974
Amortization of intangibles		2,253			2,477			2,478			2,477			2,478			9,685			8,853
Electronic banking expense		3,599			3,709			3,675			3,330			3,914			14,313			13,632
Directors' fees		399			417			538			460			358			1,814			1,491
Due from bank service charges		274			282			286			273			273			1,115			1,255
FDIC and state assessment		16,016			2,794			3,220			3,500			2,224			25,530			8,428
Insurance		873			878			927			889			1,003			3,567			3,705
Legal and accounting		1,192			1,514			1,436			1,088			5,962			5,230			9,401
Other professional fees		1,640			2,117			2,774			2,284			2,552			8,815			8,881
Operating supplies		777			860			763			738			690			3,138			3,120
Postage		503			491			586			501			602			2,081			2,078
Telephone		515			544			573			528			576			2,160			1,890
Other expense		9,406			7,306			8,320			7,935			7,333			32,967			27,905

Total other operating expenses	$	39,673		$	25,684		$	27,674		$	26,234		$	30,708		$	119,265		$	98,789

(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)	Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022
BALANCE SHEET RATIOS
Total loans to total deposits		85.92	%		86.40	%		83.43	%		82.47	%		80.33	%
Common equity to assets		16.73	%		16.65	%		16.51	%		16.12	%		15.41	%
Tangible common equity to tangible assets (non-GAAP)⁽¹⁾		11.05	%		10.76	%		10.65	%		10.33	%		9.66	%
LOANS RECEIVABLE
Real estate
Commercial real estate loans
Non-farm/non-residential	$	5,549,954		$	5,614,259		$	5,480,738		$	5,524,125		$	5,632,063
Construction/land development		2,293,047			2,154,030			2,201,514			2,160,514			2,135,266
Agricultural		325,156			336,160			340,067			342,814			346,811
Residential real estate loans
Residential 1-4 family		1,844,260			1,808,248			1,790,218			1,748,231			1,748,551
Multifamily residential		435,736			444,239			455,754			637,633			578,052
Total real estate		10,448,153			10,356,936			10,268,291			10,413,317			10,440,743
Consumer		1,153,690			1,153,461			1,156,273			1,173,325			1,149,896
Commercial and industrial		2,324,991			2,195,678			2,288,646			2,368,428			2,349,263
Agricultural		307,327			332,608			297,743			250,851			285,235
Other		190,567			233,150			170,019			180,713			184,343
Loans receivable	$	14,424,728		$	14,271,833		$	14,180,972		$	14,386,634		$	14,409,480
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period	$	285,562		$	285,683		$	287,169		$	289,669		$	289,203
Loans charged off		3,592			3,449			4,726			4,288			5,379
Recoveries of loans previously charged off		614			528			940			588			845
Net loans charged off		2,978			2,921			3,786			3,700			4,534
Provision for credit losses - loans		5,650			2,800			2,300			1,200			5,000
Balance, end of period	$	288,234		$	285,562		$	285,683		$	287,169		$	289,669
Net charge-offs to average total loans		0.08	%		0.08	%		0.11	%		0.10	%		0.13	%
Allowance for credit losses to total loans		2.00	%		2.00	%		2.01	%		2.00	%		2.01	%
NON-PERFORMING ASSETS
Non-performing loans
Non-accrual loans	$	59,971		$	84,184		$	49,627		$	65,401		$	51,011
Loans past due 90 days or more		4,130			6,674			10,869			8,567			9,845
Total non-performing loans		64,101			90,858			60,496			73,968			60,856
Other non-performing assets
Foreclosed assets held for sale, net		30,486			691			725			425			546
Other non-performing assets		785			64			64			74			74
Total other non-performing assets		31,271			755			789			499			620
Total non-performing assets	$	95,372		$	91,613		$	61,285		$	74,467		$	61,476
Allowance for credit losses for loans to non-performing loans		449.66	%		314.29	%		472.23	%		388.23	%		475.99	%
Non-performing loans to total loans		0.44	%		0.64	%		0.43	%		0.51	%		0.42	%
Non-performing assets to total assets		0.42	%		0.42	%		0.28	%		0.33	%		0.27	%

(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
	December 31, 2023						September 30, 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	$	337,821	$	4,281	5.03	%	$	197,336	$	2,328	4.68	%
Federal funds sold		4,716		65	5.47	%		4,859		82	6.70	%
Investment securities - taxable		3,444,715		34,016	3.92	%		3,598,513		34,520	3.81	%
Investment securities - non-taxable - FTE		1,263,567		8,880	2.79	%		1,272,680		9,034	2.82	%
Loans receivable - FTE		14,336,613		260,069	7.20	%		14,191,461		249,591	6.98	%
Total interest-earning assets		19,387,432		307,311	6.29	%		19,264,849		295,555	6.09	%
Non-earning assets		2,669,008						2,637,585
Total assets	$	22,056,440					$	21,902,434

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	10,912,668	$	73,026	2.65	%	$	10,923,936	$	68,067	2.47	%
Time deposits		1,564,682		14,945	3.79	%		1,319,126		10,631	3.20	%
Total interest-bearing deposits		12,477,350		87,971	2.80	%		12,243,062		78,698	2.55	%
Federal funds purchased		—		—	—	%		54		1	7.35	%
Securities sold under agreement to repurchase		162,102		1,480	3.62	%		154,687		1,344	3.45	%
FHLB borrowed funds		905,689		9,878	4.33	%		773,345		8,161	4.19	%
Subordinated debentures		439,906		4,121	3.72	%		440,054		4,121	3.72	%
Total interest-bearing liabilities		13,985,047		103,450	2.93	%		13,611,202		92,325	2.69	%
Non-interest bearing liabilities
Non-interest bearing deposits		4,212,665						4,434,394
Other liabilities		202,008						189,499
Total liabilities		18,399,720						18,235,095
Shareholders' equity		3,656,720						3,667,339
Total liabilities and shareholders' equity	$	22,056,440					$	21,902,434
Net interest spread					3.36	%					3.40	%
Net interest income and margin - FTE			$	203,861	4.17	%			$	203,230	4.19	%

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

	Year Ended
	December 31, 2023						December 31, 2022
(Dollars in thousands)	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
ASSETS
Earning assets
Interest-bearing balances due from banks	$	319,733	$	15,023	4.70	%	$	2,444,541	$	29,110	1.19	%
Federal funds sold		3,864		221	5.72	%		1,519		25	1.65	%
Investment securities - taxable		3,655,632		138,575	3.79	%		3,582,664		91,933	2.57	%
Investment securities - non-taxable - FTE		1,276,566		36,727	2.88	%		1,178,561		36,363	3.09	%
Loans receivable - FTE		14,314,732		990,013	6.92	%		12,940,998		728,998	5.63	%
Total interest-earning assets		19,570,527		1,180,559	6.03	%		20,148,283		886,429	4.40	%
Non-earning assets		2,647,383						2,405,057
Total assets	$	22,217,910					$	22,553,340

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	11,162,244	$	258,586	2.32	%	$	11,520,781	$	81,061	0.70	%
Time deposits		1,284,156		37,392	2.91	%		1,033,431		4,928	0.48	%
Total interest-bearing deposits		12,446,400		295,978	2.38	%		12,554,212		85,989	0.68	%
Federal funds purchased		44		3	6.82	%		220		2	0.91	%
Securities sold under agreement to repurchase		149,014		4,813	3.23	%		129,006		1,430	1.11	%
FHLB borrowed funds		753,152		30,825	4.09	%		473,839		11,076	2.34	%
Subordinated debentures		440,125		16,489	3.75	%		515,049		20,593	4.00	%
Total interest-bearing liabilities		13,788,735		348,108	2.52	%		13,672,326		119,090	0.87	%
Non-interest bearing liabilities
Non-interest bearing deposits		4,599,241						5,378,906
Other liabilities		198,634						171,390
Total liabilities		18,586,610						19,222,622
Shareholders' equity		3,631,300						3,330,718
Total liabilities and shareholders' equity	$	22,217,910					$	22,553,340
Net interest spread					3.51	%					3.53	%
Net interest income and margin - FTE			$	832,451	4.25	%			$	767,339	3.81	%

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

	Quarter Ended															Year Ended
(Dollars and shares in thousands, except per share data)	Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Dec. 31, 2023			Dec. 31, 2022
EARNINGS, AS ADJUSTED
GAAP net income available to common shareholders (A)	$	86,243		$	98,453		$	105,271		$	102,962		$	115,687		$	392,929		$	305,262
Pre-tax adjustments
FDIC special assessment		12,983			—			—			—			—			12,983			—
BOLI death benefits		—			(338	)		(2,779	)		—			—			(3,117	)		—
Merger and acquisition expenses		—			—			—			—			—			—			49,594
Initial provision for credit losses - acquisition		—			—			—			—			—			—			58,585
Fair value adjustment for marketable securities		(5,024	)		(4,507	)		(783	)		11,408			(1,032	)		1,094			1,272
Special dividend from equity investment		—			—			—			—			—			—			(1,434	)
TRUPS redemption fees		—			—			—			—			—			—			2,081
Special lawsuit settlement, net of expense		—			—			—			—			(10,000	)		—			(10,000	)
Recoveries on historic losses		—			—			—			(3,461	)		—			(3,461	)		(6,706	)
Hurricane expense		—			—			—			—			176			—			176
Total pre-tax adjustments		7,959			(4,845	)		(3,562	)		7,947			(10,856	)		7,499			93,568
Tax-effect of adjustments		1,989			(1,112	)		(879	)		1,961			(2,679	)		1,959			22,890
Total adjustments after-tax (B)		5,970			(3,733	)		(2,683	)		5,986			(8,177	)		5,540			70,678
Earnings, as adjusted (C)	$	92,213		$	94,720		$	102,588		$	108,948		$	107,510		$	398,469		$	375,940

Average diluted shares outstanding (D)		201,891			202,650			202,923			203,625			204,179			202,773			195,019

GAAP diluted earnings per share: (A/D)	$	0.43		$	0.49		$	0.52		$	0.51		$	0.57		$	1.94		$	1.57
Adjustments after-tax: (B/D)		0.03			(0.02	)		(0.01	)		0.03			(0.04	)		0.03			0.36
Diluted earnings per common share, as adjusted: (C/D)	$	0.46		$	0.47		$	0.51		$	0.54		$	0.53		$	1.97		$	1.93

EARNINGS, EXCLUDING FDIC SPECIAL ASSESSMENT
GAAP net income available to common shareholders	$	86,243		$	98,453		$	105,271		$	102,962		$	115,687		$	392,929		$	305,262
FDIC special assessment		12,983			—			—			—			—			12,983			—
Tax-effect of FDIC special assessment		3,244			—			—			—			—			3,244			—
Adjustment after-tax		9,739			—			—			—			—			9,739			—
Earnings, excluding FDIC special assessment (A)	$	95,982		$	98,453		$	105,271		$	102,962		$	115,687		$	402,668		$	305,262

Average diluted shares outstanding (B)		201,891			202,650			202,923			203,625			204,179			202,773			195,019

Diluted earnings per common share, as adjusted: (A/B)	$	0.48		$	0.49		$	0.52		$	0.51		$	0.57		$	1.99		$	1.57

ANNUALIZED RETURN ON AVERAGE ASSETS
Return on average assets: (A/E)		1.55	%		1.78	%		1.90	%		1.84	%		1.98	%		1.77	%		1.35	%
Return on average assets, as adjusted: (ROA, as adjusted) ((A+D)/E)		1.66	%		1.72	%		1.85	%		1.95	%		1.84	%		1.79	%		1.67	%
Return on average assets excluding intangible amortization: ((A+C)/(E-F))		1.69	%		1.95	%		2.07	%		2.00	%		2.15	%		1.93	%		1.47	%
Return on average assets, as adjusted, excluding intangible amortization: ((A+C+D)/(E-F))		1.81	%		1.87	%		2.02	%		2.12	%		2.00	%		1.95	%		1.80	%

GAAP net income available to common shareholders (A)	$	86,243		$	98,453		$	105,271		$	102,962		$	115,687		$	392,929		$	305,262
Amortization of intangibles (B)		2,253			2,477			2,478			2,477			2,478			9,685			8,853
Amortization of intangibles after-tax (C)		1,690			1,866			1,866			1,866			1,866			7,288			6,624
Adjustments after-tax (D)		5,970			(3,733	)		(2,683	)		5,986			(8,177	)		5,540			70,678
Average assets (E)		22,056,440			21,902,434			22,227,404			22,695,855			23,187,005			22,217,910			22,553,340
Average goodwill & core deposit intangible (F)		1,448,061			1,450,478			1,452,951			1,455,423			1,454,639			1,451,705			1,335,216

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

	Quarter Ended															Year Ended
(Dollars in thousands)	Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Dec. 31, 2023			Dec. 31, 2022
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY
Return on average common equity: (A/D)		9.36	%		10.65	%		11.63	%		11.70	%		13.29	%		10.82	%		9.17	%
Return on average common equity, as adjusted: (ROE, as adjusted) ((A+C)/D)		10.00	%		10.25	%		11.33	%		12.38	%		12.35	%		10.97	%		11.29	%
Return on average tangible common equity: (A/(D-E))		15.49	%		17.62	%		19.39	%		19.75	%		22.96	%		18.03	%		15.30	%
Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) ((A+C)/(D-E))		16.56	%		16.95	%		18.90	%		20.90	%		21.33	%		18.28	%		18.84	%
Return on average tangible common equity excluding intangible amortization: (B/(D-E))		15.80	%		17.95	%		19.74	%		20.11	%		23.33	%		18.36	%		15.63	%
Return on average tangible common equity, as adjusted, excluding intangible amortization: ((B+C)/(D-E))		16.87	%		17.29	%		19.24	%		21.26	%		21.70	%		18.62	%		19.17	%

GAAP net income available to common shareholders (A)	$	86,243		$	98,453		$	105,271		$	102,962		$	115,687		$	392,929		$	305,262
Earnings excluding intangible amortization (B)		87,933			100,319			107,137			104,828			117,553			400,217			311,886
Adjustments after-tax (C)		5,970			(3,733	)		(2,683	)		5,986			(8,177	)		5,540			70,678
Average common equity (D)		3,656,720			3,667,339			3,630,194			3,569,592			3,454,005			3,631,300			3,330,718
Average goodwill & core deposits intangible (E)		1,448,061			1,450,478			1,452,951			1,455,423			1,454,639			1,451,705			1,335,216

EFFICIENCY RATIO & P5NR
Efficiency ratio: ((D-H)/(B+C+E))		50.64	%		45.53	%		44.00	%		44.80	%		42.44	%		46.21	%		49.53	%
Efficiency ratio, as adjusted: ((D-H-J)/(B+C+E-I))		46.43	%		46.44	%		44.83	%		43.42	%		43.07	%		45.24	%		44.55	%
Pre-tax net income to total revenue (net) (A/(B+C))		45.92	%		52.70	%		53.23	%		53.43	%		54.50	%		51.35	%		42.26	%
Pre-tax net income, as adjusted, to total revenue (net) ((A+F)/(B+C))		49.16	%		50.72	%		51.85	%		56.63	%		50.52	%		52.10	%		52.28	%
Pre-tax, pre-provision, net income (PPNR) (B+C-D)	$	118,443		$	130,588		$	140,870		$	134,115		$	153,423		$	524,016		$	458,160
Pre-tax, pre-provision, net income, as adjusted (B+C-D+F-G)		126,402			125,743			137,308			142,062			142,567			531,515			493,143
P5_NR (Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C)		48.22	%		53.23	%		54.78	%		53.91	%		56.34	%		52.57	%		49.06	%
P5_NR, as adjusted (B+C-D+F-G)/(B+C)		51.46	%		51.25	%		53.40	%		57.11	%		52.35	%		53.32	%		52.81	%

Pre-tax net income (A)	$	112,793		$	129,288		$	136,887		$	132,915		$	148,423		$	511,883		$	394,575
Net interest income (B)		202,770			201,937			207,643			214,595			215,666			826,945			758,676
Non-interest income (C)		42,848			43,413			49,509			34,164			56,660			169,934			175,111
Non-interest expense (D)		127,175			114,762			116,282			114,644			118,903			472,863			475,627
Fully taxable equivalent adjustment (E)		1,091			1,293			1,494			1,628			2,017			5,506			8,663
Total pre-tax adjustments (F)		7,959			(4,845	)		(3,562	)		7,947			(10,856	)		7,499			93,568
Initial provision for credit losses - acquisition (G)		—			—			—			—			—			—			58,585
Amortization of intangibles (H)		2,253			2,477			2,478			2,477			2,478			9,685			8,853

Adjustments:
Non-interest income:
Fair value adjustment for marketable securities	$	5,024		$	4,507		$	783		$	(11,408	)	$	1,032		$	(1,094	)	$	(1,272	)
Gain on OREO		13			—			319			—			13			332			500
Gain (loss) on branches, equipment and other assets, net		583			—			917			7			10			1,507			15
Special dividend from equity investment		—			—			—			—			—			—			1,434
BOLI death benefits		—			338			2,779			—			—			3,117			—
Lawsuit settlement - special lawsuit		—			—			—			—			15,000			—			15,000
Recoveries on historic losses		—			—			—			3,461			—			3,461			6,706
Total non-interest income adjustments (I)	$	5,620		$	4,845		$	4,798		$	(7,940	)	$	16,055		$	7,323		$	22,383

Non-interest expense:
FDIC special assessment		12,983			—			—			—			—			12,983			—
Merger and acquisition expenses		—			—			—			—			—			—			49,594
Hurricane expense		—			—			—			—			176			—			176
Legal expense - special lawsuit		—			—			—			—			5,000			—			5,000
TRUPS redemption fees		—			—			—			—			—			—			2,081
Total non-interest expense adjustments (J)	$	12,983		$	—		$	—		$	—		$	5,176		$	12,983		$	56,851

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

	Quarter Ended
	Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022
TANGIBLE BOOK VALUE PER COMMON SHARE
Book value per common share: (A/B)	$	18.81		$	18.06		$	18.04		$	17.87		$	17.33
Tangible book value per common share: ((A-C-D)/B)		11.63			10.90			10.87			10.71			10.17

Total stockholders' equity (A)	$	3,791,075		$	3,654,874		$	3,654,084		$	3,630,885		$	3,526,362
End of period common shares outstanding (B)		201,526			202,323			202,573			203,168			203,434
Goodwill (C)		1,398,253			1,398,253			1,398,253			1,398,253			1,398,253
Core deposit and other intangibles (D)		48,770			51,023			53,500			55,978			58,455

TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
Equity to assets: (B/A)		16.73	%		16.65	%		16.51	%		16.12	%		15.41	%
Tangible common equity to tangible assets: ((B-C-D)/(A-C-D))		11.05	%		10.76	%		10.65	%		10.33	%		9.66	%

Total assets (A)	$	22,656,658		$	21,950,638		$	22,126,429		$	22,518,255		$	22,883,588
Total stockholders' equity (B)		3,791,075			3,654,874			3,654,084			3,630,885			3,526,362
Goodwill (C)		1,398,253			1,398,253			1,398,253			1,398,253			1,398,253
Core deposit and other intangibles (D)		48,770			51,023			53,500			55,978			58,455

Results of West Texas Headwinds and FDIC Surprise 4th Quarter Assessment Only Things Standing Between HOMB and Expected 2023 Goal of $400 Million Plus

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