Document


Metric	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021
Net Income	$64.9 million	$73.4 million	$75.0 million	$79.1 million	$91.6 million
Total Revenue (net)	$161.8 million	$171.0 million	$173.8 million	$172.4 million	$193.4 million
Income before income taxes	$84.9 million	$93.9 million	$98.2 million	$104.1 million	$120.5 million
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)	$84.9 million	$93.9 million	$98.2 million	$99.4 million	$120.5 million
Pre-tax net income to total revenue (net)	52.48%	54.94%	56.50%	60.42%	62.32%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)	52.48%	54.94%	56.50%	57.66%	62.32%
ROA	1.43%	1.62%	1.68%	1.81%	2.22%
NIM	3.21%	3.42%	3.60%	3.61%	4.02%
NIM, excluding PPP loans (non-GAAP)(1)	3.17%	3.32%	3.43%	3.54%	3.86%
Purchase Accounting Accretion	$3.1 million	$4.0 million	$4.9 million	$5.8 million	$5.5 million
ROE	9.58%	10.63%	10.97%	11.92%	14.15%
ROTCE (non-GAAP)(1)	15.03%	16.73%	17.39%	19.12%	22.90%
Diluted Earnings Per Share	$0.40	$0.45	$0.46	$0.48	$0.55
Non-Performing Assets to Total Assets	0.25%	0.29%	0.29%	0.35%	0.38%
Common Equity Tier 1 Capital	14.9%	15.4%	15.2%	15.0%	14.3%
Leverage	10.8%	11.1%	11.0%	10.9%	11.1%
Tier 1 Capital	15.4%	16.0%	15.8%	15.6%	14.9%
Total Risk-Based Capital	21.6%	19.8%	19.6%	19.5%	18.8%
Allowance for Credit Losses to Total Loans	2.34%	2.41%	2.41%	2.36%	2.25%
Allowance for Credit Losses to Total Loans, excluding PPP loans (non-GAAP)(1)	2.35%	2.43%	2.47%	2.47%	2.40%

“The first quarter brought about record high wholesale prices, rising interest rates, future recession fears and global unrest, thus creating one of the most volatile quarters on record during my business career,” said John Allison, Chairman. “During this time, HOMB has stayed true to our discipline and still delivered solid performance during the quarter. We like how we have positioned ourselves in the market with over $3.5 billion in excess cash, and with rising interest rates, it seems as though we have played the chess game very well so far. We believe the Fed will be forced to continue raising rates at a faster pace in the near term. As a result, we could be poised to start deploying some of the cash in the remainder of the year,” continued Allison.

As of March 31, 2022, we had $59.6 million of Paycheck Protection Program (PPP) loans outstanding. These loans are at 1.00% plus the accretion of the origination fee. Excluding PPP loans, our net interest margin (non-GAAP) for the three-month period ended March 31, 2022 was 3.17%(1). The PPP loans were accretive to the net interest margin by 4 basis points for the three-month period ended March 31, 2022 compared to 10 basis points for the three-month period ended December 31, 2021. This was primarily due to approximately $53.2 million of the Company’s PPP loans being forgiven during the first quarter of 2022 as well as the acceleration of deferred fees for the loans that were forgiven. The deferred fee income decreased from $5.4 million to $2.0 million for the three-month periods ended December 31, 2021 and March 31, 2022, respectively.

Net interest income on a fully taxable equivalent basis was $132.9 million for the three-month period ended March 31, 2022 and $140.8 million for the three-month period ended December 31, 2021. This decrease in net interest income for the three-month period ended March 31, 2022 was the result of a $6.1 million decrease in interest income and a $1.8 million increase in interest expense. The $6.1 million decrease in interest income was primarily the result of a $7.3 million decrease in loan interest income, partially offset by an $835,000 increase in investment income. The $1.8 million increase in interest expense was due to a $2.1 million increase in interest expense on subordinated debentures, which was partially offset by a $261,000 decrease in interest expense on deposits. The increase in interest expense on subordinated debentures was the result of the Company completing an underwritten public offering of $300.0 million in aggregate principal of its 3.125% Fixed-to-Floating Rate Subordinated Notes due 2032 during the first quarter of 2022. The new subordinated debt was dilutive to the net interest margin by 5 basis points.

The Company reported $30.7 million of non-interest income for the first quarter of 2022. The most important components of the first quarter non-interest income were $7.7 million from other service charges and fees, $6.1 million from service charges on deposit accounts, $3.9 million in mortgage lending income, $7.9 million from other income, $2.1 million income from the fair value adjustment for marketable securities, $698,000 million from dividends from FHLB, FRB, FNBB and other, $574,000 from trust fees, $492,000 increase in cash value of life insurance, $480,000 from insurance commissions and $478,000 from gain on OREO. The $7.9 million in other income includes $3.3 million in recoveries on historic losses for a single borrower.

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, April 21, 2022. We strongly encourage all participants to pre-register for the conference call webcast or the live call using one of the following links. First, participants can pre-register for the conference call webcast using the following link: https://events.q4inc.com/attendee/468089456. 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.incommglobalevents.com/registration/q4inc/10378/home-bancshares-inc-1st-quarter-earnings-call/. Participants who pre-register will be given the phone number and unique access codes to gain immediate access to the live call. Participants may pre-register now, or at any time prior to the call, and will immediately receive simple instructions via email. The Home BancShares conference call will also be automatically scheduled as an event in your Outlook calendar.

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

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


(In thousands)	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
ASSETS
Cash and due from banks	$	173,134	$	119,908	$	146,378	$	182,226	$	218,814
Interest-bearing deposits with other banks	3,446,324		3,530,407		3,133,878		2,759,027		2,259,734
Cash and cash equivalents	3,619,458		3,650,315		3,280,256		2,941,253		2,478,548
Investment securities - available-for sale, net of allowance for credit losses	2,957,322		3,119,807		3,150,608		3,053,712		2,539,123
Investment securities - held-to-maturity	499,265		—		—		—		—
Loans receivable	10,052,714		9,836,089		9,901,100		10,199,175		10,778,493
Allowance for credit losses	(234,768)		(236,714)		(238,673)		(240,451)		(242,932)
Loans receivable, net	9,817,946		9,599,375		9,662,427		9,958,724		10,535,561
Bank premises and equipment, net	274,503		275,760		276,972		278,502		278,620
Foreclosed assets held for sale	1,144		1,630		1,171		1,969		3,004
Cash value of life insurance	105,623		105,135		104,638		104,132		103,599
Accrued interest receivable	46,934		46,736		48,577		48,725		55,495
Deferred tax asset, net	116,605		78,290		69,724		72,273		77,145
Goodwill	973,025		973,025		973,025		973,025		973,025
Core deposit and other intangibles	23,624		25,045		26,466		27,886		29,307
Other assets	182,546		177,020		171,192		166,991		166,814
Total assets	$	18,617,995	$	18,052,138	$	17,765,056	$	17,627,192	$	17,240,241
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand and non-interest-bearing	$	4,311,400	$	4,127,878	$	4,139,149	$	4,076,570	$	3,859,722
Savings and interest-bearing transaction accounts	9,461,393		9,251,805		8,813,326		8,744,900		8,477,208
Time deposits	808,141		880,887		1,050,896		1,069,871		1,175,664
Total deposits	14,580,934		14,260,570		14,003,371		13,891,341		13,512,594
Securities sold under agreements to repurchase	151,151		140,886		141,002		150,540		162,929
FHLB and other borrowed funds	400,000		400,000		400,000		400,000		400,000
Accrued interest payable and other liabilities	131,339		113,868		113,721		118,415		148,999
Subordinated debentures	667,868		371,093		370,900		370,707		370,515
Total liabilities	15,931,292		15,286,417		15,028,994		14,931,003		14,595,037
Stockholders' equity
Common stock	1,638		1,637		1,640		1,645		1,651
Capital surplus	1,485,524		1,487,373		1,492,588		1,501,615		1,516,286
Retained earnings	1,304,098		1,266,249		1,215,831		1,163,810		1,107,818
Accumulated other comprehensive (loss) income	(104,557)		10,462		26,003		29,119		19,449
Total stockholders' equity	2,686,703		2,765,721		2,736,062		2,696,189		2,645,204
Total liabilities and stockholders' equity	$	18,617,995	$	18,052,138	$	17,765,056	$	17,627,192	$	17,240,241


	Quarter Ended										Three Months Ended
(In thousands)	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Mar 31, 2022		Mar 31, 2021

Interest income
Loans	$	129,442	$	136,750	$	142,609	$	141,684	$	150,917	$	129,442	$	150,917
Investment securities
Taxable	9,080		8,121		8,495		7,185		6,253		9,080		6,253
Tax-exempt	4,707		4,827		4,839		4,905		5,071		4,707		5,071
Deposits - other banks	1,673		1,281		1,117		707		410		1,673		410
Federal funds sold	1		—		—		—		—		1		—
Total interest income	144,903		150,979		157,060		154,481		162,651		144,903		162,651

Interest expense
Interest on deposits	4,894		5,155		5,642		6,434		7,705		4,894		7,705

FHLB borrowed funds	1,875		1,916		1,917		1,896		1,875		1,875		1,875
Securities sold under agreements to repurchase	108		98		102		107		190		108		190
Subordinated debentures	6,878		4,790		4,788		4,792		4,793		6,878		4,793
Total interest expense	13,755		11,959		12,449		13,229		14,563		13,755		14,563

Net interest income	131,148		139,020		144,611		141,252		148,088		131,148		148,088

Provision for credit losses	—		—		—		—		—		—		—
Provision for credit loss - unfunded commitments	—		—		—		(4,752)		—		—		—
Total credit loss expense	—		—		—		(4,752)		—		—		—

Net interest income after provision for credit losses	131,148		139,020		144,611		146,004		148,088		131,148		148,088

Non-interest income
Service charges on deposit accounts	6,140		6,217		5,941		5,116		5,002		6,140		5,002
Other service charges and fees	7,733		11,133		8,051		9,659		7,608		7,733		7,608
Trust fees	574		515		479		444		522		574		522
Mortgage lending income	3,916		5,359		5,948		6,202		8,167		3,916		8,167
Insurance commissions	480		387		586		478		492		480		492
Increase in cash value of life insurance	492		501		509		537		502		492		502
Dividends from FHLB, FRB, FNBB & other	698		919		2,661		2,646		8,609		698		8,609
Gain on SBA loans	95		792		439		1,149		—		95		—
Gain (loss) on branches, equipment and other assets, net	16		(19)		(34)		(23)		(29)		16		(29)
Gain on OREO, net	478		737		246		619		401		478		401
Gain on securities, net	—		—		—		—		219		—		219
Fair value adjustment for marketable securities	2,125		85		61		1,250		5,782		2,125		5,782
Other income	7,922		5,338		4,322		3,043		8,001		7,922		8,001
Total non-interest income	30,669		31,964		29,209		31,120		45,276		30,669		45,276

Non-interest expense
Salaries and employee benefits	43,551		43,765		42,469		42,462		42,059		43,551		42,059
Occupancy and equipment	9,144		9,047		9,305		9,042		9,237		9,144		9,237
Data processing expense	7,039		6,493		6,024		5,893		5,870		7,039		5,870
Merger and acquisition expenses	863		880		1,006		—		—		863		—
Other operating expenses	16,299		16,865		16,815		15,585		15,700		16,299		15,700
Total non-interest expense	76,896		77,050		75,619		72,982		72,866		76,896		72,866

Income before income taxes	84,921		93,934		98,201		104,142		120,498		84,921		120,498
Income tax expense	20,029		20,577		23,209		25,072		28,896		20,029		28,896
Net income	$	64,892	$	73,357	$	74,992	$	79,070	$	91,602	$	64,892	$	91,602


	Quarter Ended															Three Months Ended
(Dollars and shares in thousands, except per share data)	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Mar 31, 2022			Mar 31, 2021

PER SHARE DATA

Diluted earnings per common share	$	0.40		$	0.45		$	0.46		$	0.48		$	0.55		$	0.40		$	0.55
Diluted earnings per common share, as adjusted, excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses & merger and acquisition expenses (non-GAAP)(1)	0.37			0.45			0.45			0.46			0.47			0.37			0.47
Basic earnings per common share	0.40			0.45			0.46			0.48			0.55			0.40			0.55
Dividends per share - common	0.165			0.14			0.14			0.14			0.14			0.165			0.14
Book value per common share	16.41			16.90			16.68			16.39			16.02			16.41			16.02
Tangible book value per common share (non-GAAP)(1)	10.32			10.80			10.59			10.31			9.95			10.32			9.95

STOCK INFORMATION

Average common shares outstanding	163,787			163,859			164,126			164,781			165,257			163,787			165,257
Average diluted shares outstanding	164,196			164,306			164,603			165,226			165,446			164,196			165,446
End of period common shares outstanding	163,758			163,699			164,008			164,488			165,141			163,758			165,141

ANNUALIZED PERFORMANCE METRICS

Return on average assets (ROA)	1.43		%	1.62		%	1.68		%	1.81		%	2.22		%	1.43		%	2.22		%
Return on average assets excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses & merger and acquisition expenses: (ROA, as adjusted) (non-GAAP)(1)	1.36			1.64			1.67			1.75			1.88			1.36			1.88
Return on average assets excluding intangible amortization (non-GAAP)(1)	1.54			1.75			1.81			1.95			2.39			1.54			2.39
Return on average assets excluding excess liquidity (non-GAAP)(1)	1.74			1.96			1.98			2.09			2.42			1.74			2.42
Return on average common equity (ROE)	9.58			10.63			10.97			11.92			14.15			9.58			14.15
Return on average common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses & merger and acquisition expenses: (ROE, as adjusted) (non-GAAP)(1)	9.09			10.72			10.87			11.54			11.95			9.09			11.95
Return on average tangible common equity (ROTCE) (non-GAAP)(1)	15.03			16.73			17.39			19.12			22.90			15.03			22.90
Return on average tangible common equity excluding intangible amortization (non-GAAP)(1)	15.28			16.97			17.64			19.38			23.16			15.28			23.16
Return on average tangible common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses & merger and acquisition expenses: (ROTCE, as adjusted) (non-GAAP)(1)	14.26			16.87			17.23			18.50			19.33			14.26			19.33


	Quarter Ended															Three Months Ended
(Dollars in thousands)	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Mar 31, 2022			Mar 31, 2021

Efficiency ratio	46.15		%	43.79		%	42.26		%	41.09		%	36.60		%	46.15		%	36.60		%
Efficiency ratio, as adjusted (non-GAAP)(1)	47.33			43.48			42.29			42.07			40.68			47.33			40.68
Net interest margin - FTE (NIM)	3.21			3.42			3.60			3.61			4.02			3.21			4.02
Net interest margin - FTE, excluding PPP loans (non-GAAP)(1)	3.17			3.32			3.43			3.54			3.86			3.17			3.86
Fully taxable equivalent adjustment	$	1,738		$	1,736		$	1,748		$	1,774		$	1,821		$	1,738		$	1,821
Total revenue (net)	161,817			170,984			173,820			172,372			193,364			161,817			193,364
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)	84,921			93,934			98,201			99,390			120,498			84,921			120,498
Pre-tax net income to total revenue (net)	52.48		%	54.94		%	56.50		%	60.42		%	62.32		%	52.48		%	62.32		%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)	52.48			54.94			56.50			57.66			62.32			52.48			62.32
Total purchase accounting accretion	$	3,089		$	4,001		$	4,868		$	5,797		$	5,485		$	3,089		$	5,485
Average purchase accounting loan discounts	25,359			28,882			33,320			38,568			43,940			25,359			43,940


OTHER OPERATING EXPENSES

Advertising	$	1,266		$	1,411		$	1,204		$	1,194		$	1,046		$	1,266		$	1,046
Amortization of intangibles	1,421			1,420			1,421			1,421			1,421			1,421			1,421
Electronic banking expense	2,538			2,442			2,521			2,616			2,238			2,538			2,238
Directors' fees	404			422			395			414			383			404			383
Due from bank service charges	270			257			265			273			249			270			249
FDIC and state assessment	1,668			1,353			1,648			1,108			1,363			1,668			1,363
Insurance	770			801			749			787			781			770			781
Legal and accounting	797			749			1,050			1,058			846			797			846
Other professional fees	1,609			1,754			1,787			1,796			1,613			1,609			1,613
Operating supplies	754			489			474			465			487			754			487
Postage	306			352			301			292			338			306			338
Telephone	337			343			371			365			346			337			346
Other expense	4,159			5,072			4,629			3,796			4,589			4,159			4,589

Total other operating expenses	$	16,299		$	16,865		$	16,815		$	15,585		$	15,700		$	16,299		$	15,700


(Dollars in thousands)	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021

BALANCE SHEET RATIOS

Total loans to total deposits	68.94		%	68.97		%	70.71		%	73.42		%	79.77		%
Common equity to assets	14.43			15.32			15.40			15.30			15.34
Tangible common equity to tangible assets (non-GAAP)(1)	9.59			10.36			10.36			10.20			10.12
							.
LOANS RECEIVABLE

Real estate
Commercial real estate loans
Non-farm/non-residential	$	3,810,383		$	3,889,284		$	4,005,841		$	4,144,375		$	4,289,142
Construction/land development	1,856,096			1,850,050			1,742,687			1,541,482			1,612,973
Agricultural	142,920			130,674			138,881			126,293			113,382
Residential real estate loans
Residential 1-4 family	1,223,890			1,274,953			1,273,988			1,316,485			1,437,546
Multifamily residential	248,650			280,837			274,131			332,256			377,661
Total real estate	7,281,939			7,425,798			7,435,528			7,460,891			7,830,704
Consumer	1,059,342			825,519			814,732			824,938			839,819
Commercial and industrial	1,510,205			1,386,747			1,414,079			1,612,826			1,794,787
Agricultural	48,095			43,920			68,272			69,152			65,017
Other	153,133			154,105			168,489			231,368			248,166
Loans receivable	$	10,052,714		$	9,836,089		$	9,901,100		$	10,199,175		$	10,778,493

Paycheck Protection Program (PPP) loans (net of discounts) (included in total loans receivable)	59,609			112,814			241,476			473,894			646,382

ALLOWANCE FOR CREDIT LOSSES

Balance, beginning of period	$	236,714		$	238,673		$	240,451		$	242,932		$	245,473
Loans charged off	2,310			3,125			2,469			3,023			3,047
Recoveries of loans previously charged off	364			1,166			691			542			506
Net loans charged off	1,946			1,959			1,778			2,481			2,541
Provision for credit losses - loans	—			—			—			—			—
Balance, end of period	$	234,768		$	236,714		$	238,673		$	240,451		$	242,932

Net charge-offs to average total loans	0.08		%	0.08		%	0.07		%	0.09		%	0.09		%
Allowance for credit losses to total loans	2.34			2.41			2.41			2.36			2.25
Allowance for credit losses to total loans, excluding PPP loans	2.35			2.43			2.47			2.47			2.40

NON-PERFORMING ASSETS

Non-performing loans
Non-accrual loans	$	44,629		$	47,158		$	47,604		$	55,269		$	59,142
Loans past due 90 days or more	46			3,035			3,311			3,667			4,209
Total non-performing loans	44,675			50,193			50,915			58,936			63,351
Other non-performing assets
Foreclosed assets held for sale, net	1,144			1,630			1,171			1,969			3,004
Other non-performing assets	—			—			—			—			—
Total other non-performing assets	1,144			1,630			1,171			1,969			3,004
Total non-performing assets	$	45,819		$	51,823		$	52,086		$	60,905		$	66,355

Allowance for credit losses for loans to non-performing loans	525.50		%	471.61		%	468.77		%	407.99		%	383.47		%
Non-performing loans to total loans	0.44			0.51			0.51			0.58			0.59
Non-performing assets to total assets	0.25			0.29			0.29			0.35			0.38


	Three Months Ended
	March 31, 2022						December 31, 2021
(Dollars in thousands)	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate

ASSETS
Earning assets
Interest-bearing balances due from banks	$	3,497,894	$	1,673	0.19	%	$	3,261,846	$	1,281	0.16	%
Federal funds sold	1,751		1		0.23		33		—		—
Investment securities - taxable	2,486,401		9,080		1.48		2,278,440		8,121		1.41
Investment securities - non-taxable - FTE	850,722		6,284		3.00		858,692		6,408		2.96
Loans receivable - FTE	9,937,993		129,603		5.29		9,909,711		136,905		5.48
Total interest-earning assets	16,774,761		146,641		3.55		16,308,722		152,715		3.72
Non-earning assets	1,618,314						1,606,005
Total assets	$	18,393,075					$	17,914,727

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	9,363,793	$	3,873	0.17	%	$	9,037,302	$	3,667	0.16	%
Time deposits	854,593		1,021		0.48		958,309		1,488		0.62
Total interest-bearing deposits	10,218,386		4,894		0.19		9,995,611		5,155		0.20
Securities sold under agreement to repurchase	137,565		108		0.32		143,811		98		0.27
FHLB borrowed funds	400,000		1,875		1.90		400,000		1,916		1.90
Subordinated debentures	611,888		6,878		4.56		370,999		4,790		5.12
Total interest-bearing liabilities	11,367,839		13,755		0.49		10,910,421		11,959		0.43
Non-interest bearing liabilities
Non-interest bearing deposits	4,155,894						4,149,978
Other liabilities	121,362						116,023
Total liabilities	15,645,095						15,176,422
Shareholders' equity	2,747,980						2,738,305
Total liabilities and shareholders' equity	$	18,393,075					$	17,914,727
Net interest spread					3.06	%					3.29	%
Net interest income and margin - FTE			$	132,886	3.21				$	140,756	3.42


	Three Months Ended
	March 31, 2022						March 31, 2021
(Dollars in thousands)	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate

ASSETS
Earning assets
Interest-bearing balances due from banks	$	3,497,894	$	1,673	0.19	%	$	1,610,463	$	410	0.10	%
Federal funds sold	1,751		1		0.23		119		—		—
Investment securities - taxable	2,486,401		9,080		1.48		1,637,061		6,253		1.55
Investment securities - non-taxable - FTE	850,722		6,284		3.00		848,158		6,700		3.20
Loans receivable - FTE	9,937,993		129,603		5.29		11,023,139		151,109		5.56
Total interest-earning assets	16,774,761		146,641		3.55		15,118,940		164,472		4.41
Non-earning assets	1,618,314						1,599,950
Total assets	$	18,393,075					$	16,718,890

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	9,363,793	$	3,873	0.17	%	$	8,338,791	$	4,716	0.23	%
Time deposits	854,593		1,021		0.48		1,209,431		2,989		1.00
Total interest-bearing deposits	10,218,386		4,894		0.19		9,548,222		7,705		0.33

Securities sold under agreement to repurchase	137,565		108		0.32		159,697		190		0.48
FHLB borrowed funds	400,000		1,875		1.90		400,000		1,875		1.90
Subordinated debentures	611,888		6,878		4.56		370,421		4,793		5.25
Total interest-bearing liabilities	11,367,839		13,755		0.49		10,478,340		14,563		0.56
Non-interest bearing liabilities
Non-interest bearing deposits	4,155,894						3,480,050
Other liabilities	121,362						134,882
Total liabilities	15,645,095						14,093,272
Shareholders' equity	2,747,980						2,625,618
Total liabilities and shareholders' equity	$	18,393,075					$	16,718,890
Net interest spread					3.06	%					3.85	%
Net interest income and margin - FTE			$	132,886	3.21				$	149,909	4.02


	Quarter Ended															Three Months Ended
(Dollars and shares in thousands, except per share data)	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Mar 31, 2022			Mar 31, 2021

EARNINGS, AS ADJUSTED

GAAP net income available to common shareholders (A)	$	64,892		$	73,357		$	74,992		$	79,070		$	91,602		$	64,892		$	91,602
Pre-tax adjustments
Fair value adjustment for marketable securities	(2,125)			(85)			(61)			(1,250)			(5,782)			(2,125)			(5,782)
Special dividend from equity investment	—			—			(2,227)			(2,200)			(8,073)			—			(8,073)
Gain on securities	—			—			—			—			(219)			—			(219)
Recoveries on historic losses	(3,288)			—			—			—			(5,107)			(3,288)			(5,107)


Merger and acquisition expenses	863			880			1,006			—			—			863			—
Total pre-tax adjustments	(4,550)			795			(1,282)			(3,450)			(19,181)			(4,550)			(19,181)
Tax-effect of adjustments	(1,220)			188			(587)			(888)			(4,937)			(1,220)			(4,937)
Total adjustments after-tax (B)	(3,330)			607			(695)			(2,562)			(14,244)			(3,330)			(14,244)
Earnings, as adjusted (C)	$	61,562		$	73,964		$	74,297		$	76,508		$	77,358		$	61,562		$	77,358

Average diluted shares outstanding (D)	164,196			164,306			164,603			165,226			165,446			164,196			165,446

GAAP diluted earnings per share: (A/D)	$	0.40		$	0.45		$	0.46		$	0.48		$	0.55		$	0.40		$	0.55
Adjustments after-tax: (B/D)	(0.03)			—			(0.01)			(0.02)			(0.08)			(0.03)			(0.08)
Diluted earnings per common share, as adjusted, excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses & merger and acquisition expenses: (C/D)	$	0.37		$	0.45		$	0.45		$	0.46		$	0.47		$	0.37		$	0.47

ANNUALIZED RETURN ON AVERAGE ASSETS

Return on average assets: (A/G)	1.43		%	1.62		%	1.68		%	1.81		%	2.22		%	1.43		%	2.22		%
Return on average assets excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses & merger and acquisition expenses: (ROA, as adjusted) ((A+F)/G)	1.36			1.64			1.67			1.75			1.88			1.36			1.88
Return on average assets excluding intangible amortization: ((A+E)/(G-H))	1.54			1.75			1.81			1.95			2.39			1.54			2.39
Return on average assets excluding excess liquidity: (A/(G-I))	1.74			1.96			1.98			2.09			2.42			1.74			2.42

GAAP net income available to common shareholders (A)	$	64,892		$	73,357		$	74,992		$	79,070		$	91,602		$	64,892		$	91,602
Amortization of intangibles (D)	1,421			1,420			1,421			1,421			1,421			1,421			1,421
Amortization of intangibles after-tax (E)	1,049			1,054			1,055			1,055			1,055			1,049			1,055
Adjustments after-tax (F)	(3,330)			607			(695)			(2,562)			(14,244)			(3,330)			(14,244)
Average assets (G)	18,393,075			17,914,727			17,695,226			17,491,359			16,718,890			18,393,075			16,718,890
Average goodwill, core deposits & other intangible assets (H)	997,338			998,760			1,000,175			1,001,598			1,003,011			997,338			1,003,011

Average interest bearing cash balance	3,497,894			3,261,846			2,914,785			2,577,101			1,610,463			3,497,894			1,610,463
Average historical interest bearing cash balance	225,000			225,000			225,000			225,000			225,000			225,000			225,000
Average excess cash balance (I)	3,272,894			3,036,846			2,689,785			2,352,101			1,385,463			3,272,894			1,385,463


	Quarter Ended															Three Months Ended
(Dollars in thousands)	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Mar 31, 2022			Mar 31, 2021

ANNUALIZED RETURN ON AVERAGE COMMON EQUITY

Return on average common equity: (A/D)	9.58		%	10.63		%	10.97		%	11.92		%	14.15		%	9.58		%	14.15		%
Return on average common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses & merger and acquisition expenses: (ROE, as adjusted) ((A+C)/D)	9.09			10.72			10.87			11.54			11.95			9.09			11.95
Return on average tangible common equity: (A/(D-E))	15.03			16.73			17.39			19.12			22.90			15.03			22.90
Return on average tangible common equity excluding intangible amortization: (B/(D-E))	15.28			16.97			17.64			19.38			23.16			15.28			23.16
Return on average tangible common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses & merger and acquisition expenses: (ROTCE, as adjusted) ((A+C)/(D-E))	14.26			16.87			17.23			18.50			19.33			14.26			19.33

GAAP net income available to common shareholders (A)	$	64,892		$	73,357		$	74,992		$	79,070		$	91,602		$	64,892		$	91,602
Earnings excluding intangible amortization (B)	65,941			74,411			76,047			80,125			92,657			65,941			92,657
Adjustments after-tax (C)	(3,330)			607			(695)			(2,562)			(14,244)			(3,330)			(14,244)
Average common equity (D)	2,747,980			2,738,305			2,710,953			2,660,147			2,625,618			2,747,980			2,625,618
Average goodwill, core deposits & other intangible assets (E)	997,338			998,760			1,000,175			1,001,598			1,003,011			997,338			1,003,011

EFFICIENCY RATIO & P5NR

Efficiency ratio: ((D-F)/(B+C+E))	46.15		%	43.79		%	42.26		%	41.09		%	36.60		%	46.15		%	36.60		%
Efficiency ratio, as adjusted: ((D-F-H)/(B+C+E-G))	47.33			43.48			42.29			42.07			40.68			47.33			40.68
Pre-tax net income to total revenue (net) (A/(B+C))	52.48			54.94			56.50			60.42			62.32			52.48			62.32
Pre-tax, pre-provision, net income (PPNR) (B+C-D)	$	84,921		$	93,934		$	98,201		$	99,390		$	120,498		$	84,921		$	120,498
P5NR (Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C)	52.48		%	54.94		%	56.50		%	57.66		%	62.32		%	52.48		%	62.32		%

Pre-tax net income (A)	$	84,921		$	93,934		$	98,201		$	104,142		$	120,498		$	84,921		$	120,498
Net interest income (B)	131,148			139,020			144,611			141,252			148,088			131,148			148,088
Non-interest income (C)	30,669			31,964			29,209			31,120			45,276			30,669			45,276
Non-interest expense (D)	76,896			77,050			75,619			72,982			72,866			76,896			72,866
Fully taxable equivalent adjustment (E)	1,738			1,736			1,748			1,774			1,821			1,738			1,821
Amortization of intangibles (F)	1,421			1,420			1,421			1,421			1,421			1,421			1,421

Adjustments:
Non-interest income:
Fair value adjustment for marketable securities	$	2,125		$	85		$	61		$	1,250		$	5,782		$	2,125		$	5,782
Gain on OREO	478			737			246			619			401			478			401
Gain (loss) on branches, equipment and other assets, net	16			(19)			(34)			(23)			(29)			16			(29)
Special dividend from equity investment	—			—			2,227			2,200			8,073			—			8,073
Gain on securities	—			—			—			—			219			—			219
Recoveries on historic losses	3,288			—			—			—			5,107			3,288			5,107
Total non-interest income adjustments (G)	$	5,907		$	803		$	2,500		$	4,046		$	19,553		$	5,907		$	19,553

Non-interest expense:

Merger and acquisition expenses	863			880			1,006			—			—			863			—

Total non-interest expense adjustments (H)	$	863		$	880		$	1,006		$	—		$	—		$	863		$	—


	Quarter Ended															Three Months Ended
(Dollars in thousands)	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Mar 31, 2022			Mar 31, 2021

ANNUALIZED NET INTEREST MARGIN

Net interest margin: (A/C)	3.21		%	3.42		%	3.60		%	3.61		%	4.02		%	3.21		%	4.02		%
Net interest margin, excluding PPP loans:(B/D)	3.17			3.32			3.43			3.54			3.86			3.17			3.86

Net interest income - FTE (A)	$	132,886		$	140,756		$	146,359		$	143,026		$	149,909		$	132,886		$	149,909
PPP loan interest & discount accretion income	2,196			5,786			10,162			7,802			11,878			2,196			11,878
Net interest income - FTE, excluding PPP loans (B)	$	130,690		$	134,970		$	136,197		$	135,224		$	138,031		$	130,690		$	138,031

Average interest-earning assets (C)	$	16,774,761		$	16,308,722		$	16,110,526		$	15,892,519		$	15,118,940		$	16,774,761		$	15,118,940
Average PPP loans	78,008			162,969			371,523			581,371			633,790			78,008			633,790
Average interest-earning assets, excluding PPP loans (D)	$	16,696,753		$	16,145,753		$	15,739,003		$	15,311,148		$	14,485,150		$	16,696,753		$	14,485,150


	Quarter Ended
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021

TANGIBLE BOOK VALUE PER COMMON SHARE

Book value per common share: (A/B)	$	16.41		$	16.90		$	16.68		$	16.39		$	16.02
Tangible book value per common share: ((A-C-D)/B)	10.32			10.80			10.59			10.31			9.95

Total stockholders' equity (A)	$	2,686,703		$	2,765,721		$	2,736,062		$	2,696,189		$	2,645,204
End of period common shares outstanding (B)	163,758			163,699			164,008			164,488			165,141
Goodwill (C)	973,025			973,025			973,025			973,025			973,025
Core deposit and other intangibles (D)	23,624			25,045			26,466			27,886			29,307

TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS

Equity to assets: (B/A)	14.43		%	15.32		%	15.40		%	15.30		%	15.34		%
Tangible common equity to tangible assets: ((B-C-D)/(A-C-D))	9.59			10.36			10.36			10.20			10.12

Total assets (A)	$	18,617,995		$	18,052,138		$	17,765,056		$	17,627,192		$	17,240,241
Total stockholders' equity (B)	2,686,703			2,765,721			2,736,062			2,696,189			2,645,204
Goodwill (C)	973,025			973,025			973,025			973,025			973,025
Core deposit and other intangibles (D)	23,624			25,045			26,466			27,886			29,307


For Immediate Release:			April 21, 2022