10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended June 30, 2022

or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition period from ______ to ______

Commission File Number: 001-41093

HOME BANCSHARES, INC.

(Exact Name of Registrant as Specified in Its Charter)

Arkansas	71-0682831
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
719 Harkrider, Suite 100 ,Conway, Arkansas	72032
(Address of principal executive offices)	(Zip Code)
(501) 339-2929
(Registrant's telephone number, including area code)
Not Applicable
Former name, former address and former fiscal year, if changed since last report

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	HOMB	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large Accelerated Filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

Common Stock Issued and Outstanding: 205,065,089 shares as of August 8, 2022.

HOME BANCSHARES, INC. FORM 10-Q June 30, 2022
INDEX
		Page No.
Part I:	Financial Information
Item 1:	Financial Statements
	Consolidated Balance Sheets – June 30, 2022 (Unaudited) and December 31, 2021	4
	Consolidated Statements of Income (Unaudited) – Three and six months ended June 30, 2022 and 2021	5
	Consolidated Statements of Comprehensive (Loss) Income (Unaudited) – Three and six months ended June 30, 2022 and 2021	6
	Consolidated Statements of Stockholders’ Equity (Unaudited) – Three and six months ended June 30, 2022 and 2021	7-8
	Consolidated Statements of Cash Flows (Unaudited) – Six months ended June 30, 2022 and 2021	9
	Condensed Notes to Consolidated Financial Statements (Unaudited)	10-53
	Report of Independent Registered Public Accounting Firm	54
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	55-94
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	94-95
Item 4:	Controls and Procedures	96
Part II:	Other Information
Item 1:	Legal Proceedings	96
Item 1A:	Risk Factors	96
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	96
Item 3:	Defaults Upon Senior Securities	96
Item 4:	Mine Safety Disclosures	96
Item 5:	Other Information	96
Item 6:	Exhibits	97-98
Signatures		99

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Some of our statements contained in this document, including matters discussed under the caption “Management's Discussion and Analysis of Financial Condition and Results of Operation,” are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to future events or our future financial performance and include statements about the competitiveness of the banking industry, potential regulatory obligations, our entrance and expansion into other markets, including through prospective or potential acquisitions, our other business strategies and other statements that are not historical facts. Forward-looking statements are not guarantees of performance or results. When we use words like “may,” “plan,” “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. These forward-looking statements involve risks and uncertainties and are based on our beliefs and assumptions, and on the information available to us at the time that these disclosures were prepared. These forward-looking statements involve risks and uncertainties and may not be realized due to a variety of factors, including, but not limited to, the following:

•the effects of future local, regional, national and international economic conditions, including inflation or a decrease in commercial real estate and residential housing values;

•changes in the level of nonperforming assets and charge-offs, and credit risk generally;

•the risks of changes in interest rates or the level and composition of deposits, loan demand and the values of loan collateral, securities and interest-sensitive assets and liabilities;

•disruptions, uncertainties and related effects on credit quality, liquidity, other aspects of our business and our operations as a result of the ongoing COVID-19 pandemic and measures that have been or may be implemented or imposed in response to the pandemic;

•the effect of any mergers, acquisitions or other transactions to which we or our bank subsidiary may from time to time be a party, including our ability to successfully integrate our recent acquisition of Happy Bancshares, Inc. and its bank subsidiary, as well as any other businesses that we may acquire;

•the risk that expected cost savings and other benefits from acquisitions may not be fully realized or may take longer to realize than expected;

•the possibility that an acquisition does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all;

•the reaction to a proposed acquisition transaction of the respective companies’ customers, employees and counterparties;

•diversion of management time on acquisition-related issues;

•the ability to enter into and/or close additional acquisitions;

•the availability of and access to capital on terms acceptable to us;

•increased regulatory requirements and supervision that applies as a result of our exceeding $10 billion in total assets;

•legislation and regulation affecting the financial services industry as a whole, and the Company and its subsidiaries in particular, including the effects resulting from the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), recent reforms to the Dodd-Frank Act, legislation and regulations in response to the COVID-19 pandemic and other future legislative and regulatory changes;

•changes in governmental monetary and fiscal policies;

•the effects of terrorism and efforts to combat it;

•political instability, war, military conflicts (including the ongoing military conflict between Russia and Ukraine) and other major domestic or international events;

•adverse weather events, including hurricanes, and other natural disasters;

•the ability to keep pace with technological changes, including changes regarding cybersecurity;

•an increase in the incidence or severity of fraud, illegal payments, cybersecurity breaches or other illegal acts impacting our bank subsidiary, our vendors or our customers;

•the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market area and elsewhere, including institutions operating regionally, nationally and internationally, together with competitors offering banking products and services by mail, telephone and the Internet;

•potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions;

•the effect of changes in accounting policies and practices and auditing requirements, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters;

•higher defaults on our loan portfolio than we expect; and

•the failure of assumptions underlying the establishment of our allowance for credit losses or changes in our estimate of the adequacy of the allowance for credit losses.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this Cautionary Note. Our actual results may differ significantly from those we discuss in these forward-looking statements. For other factors, risks and uncertainties that could cause our actual results to differ materially from estimates and projections contained in these forward-looking statements, see the “Risk Factors” section of our Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 24, 2022.

PART I: FINANCIAL INFORMATION

Item 1: Financial Statements

Home BancShares, Inc.

Consolidated Balance Sheets

(In thousands, except share data)	June 30, 2022		December 31, 2021
	(Unaudited)
Assets
Cash and due from banks	$	287,451	$	119,908
Interest-bearing deposits with other banks	2,528,925		3,530,407
Cash and cash equivalents	2,816,376		3,650,315
Investment securities – available-for-sale, net of allowance for credit losses	3,791,509		3,119,807
Investment securities — held-to-maturity, net of allowance for credit losses	1,366,781		—
Total investment securities	5,158,290		3,119,807
Loans receivable	13,923,873		9,836,089
Allowance for credit losses	(294,267)		(236,714)
Loans receivable, net	13,629,606		9,599,375
Bank premises and equipment, net	415,056		275,760
Foreclosed assets held for sale	373		1,630
Cash value of life insurance	211,811		105,135
Accrued interest receivable	80,274		46,736
Deferred tax asset, net	208,585		78,290
Goodwill	1,398,400		973,025
Core deposit and other intangibles	63,410		25,045
Other assets	270,987		177,020
Total assets	$	24,253,168	$	18,052,138
Liabilities and Stockholders’ Equity
Deposits:
Demand and non-interest-bearing	$	6,036,583	$	4,127,878
Savings and interest-bearing transaction accounts	12,424,192		9,251,805
Time deposits	1,119,297		880,887
Total deposits	19,580,072		14,260,570
Securities sold under agreements to repurchase	118,573		140,886
FHLB and other borrowed funds	400,000		400,000
Accrued interest payable and other liabilities	197,503		113,868
Subordinated debentures	458,455		371,093
Total liabilities	20,754,603		15,286,417
Stockholders’ equity:
Common stock, par value $0.01; shares authorized 300,000,000 in 2022 and 2021; shares issued and outstanding 205,290,527 in 2022 and 163,699,282 in 2021	2,053		1,637
Capital surplus	2,426,271		1,487,373
Retained earnings	1,286,146		1,266,249
Accumulated other comprehensive (loss) income	(215,905)		10,462
Total stockholders’ equity	3,498,565		2,765,721
Total liabilities and stockholders’ equity	$	24,253,168	$	18,052,138

See Condensed Notes to Consolidated Financial Statements.

4

Home BancShares, Inc.

Consolidated Statements of Income

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except per share data)	2022		2021		2022		2021
	(Unaudited)
Interest income:
Loans	$	181,779	$	141,684	$	311,221	$	292,601
Investment securities
Taxable	20,941		7,185		30,021		13,438
Tax-exempt	7,725		4,905		12,432		9,976
Deposits – other banks	6,565		707		8,238		1,117
Federal funds sold	3		—		4		—
Total interest income	217,013		154,481		361,916		317,132
Interest expense:
Interest on deposits	10,729		6,434		15,623		14,139
Federal funds purchased	2		—		2		—
FHLB and other borrowed funds	1,896		1,896		3,771		3,771
Securities sold under agreements to repurchase	187		107		295		297
Subordinated debentures	5,441		4,792		12,319		9,585
Total interest expense	18,255		13,229		32,010		27,792
Net interest income	198,758		141,252		329,906		289,340
Provision for credit losses on acquired loans	45,170		—		45,170		—
Provision for credit losses on acquired unfunded commitments	11,410		—		11,410		—
Provision for credit losses on unfunded commitments	—		(4,752)		—		(4,752)
Provision for credit losses on acquired held-to-maturity investment securities	2,005		—		2,005		—
Total credit loss expense (benefit)	58,585		(4,752)		58,585		(4,752)
Net interest income after credit loss expense (benefit)	140,173		146,004		271,321		294,092
Non-interest income:
Service charges on deposit accounts	10,084		5,116		16,224		10,118
Other service charges and fees	12,541		9,659		20,274		17,267
Trust fees	4,320		444		4,894		966
Mortgage lending income	5,996		6,202		9,912		14,369
Insurance commissions	658		478		1,138		970
Increase in cash value of life insurance	1,140		537		1,632		1,039
Dividends from FHLB, FRB, FNBB & other	3,945		2,646		4,643		11,255
Gain on sale of SBA loans	—		1,149		95		1,149
Gain (loss) on sale of branches, equipment and other assets, net	2		(23)		18		(52)
Gain on OREO, net	9		619		487		1,020
Gain on securities, net	—		—		—		219
Fair value adjustment for marketable securities	(1,801)		1,250		324		7,032
Other income	7,687		3,043		15,609		11,044
Total non-interest income	44,581		31,120		75,250		76,396
Non-interest expense:
Salaries and employee benefits	65,795		42,462		109,346		84,521
Occupancy and equipment	14,256		9,042		23,400		18,279
Data processing expense	10,094		5,893		17,133		11,763
Merger and acquisition expenses	48,731		—		49,594		—
Other operating expenses	26,606		15,585		42,905		31,285
Total non-interest expense	165,482		72,982		242,378		145,848
Income before income taxes	19,272		104,142		104,193		224,640
Income tax expense	3,294		25,072		23,323		53,968
Net income	$	15,978	$	79,070	$	80,870	$	170,672
Basic earnings per share	$	0.08	$	0.48	$	0.44	$	1.03
Diluted earnings per share	$	0.08	$	0.48	$	0.44	$	1.03

See Condensed Notes to Consolidated Financial Statements.

5

Home BancShares, Inc.

Consolidated Statements of Comprehensive (Loss) Income

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
	(Unaudited)
Net income	$	15,978	$	79,070	$	80,870	$	170,672
Net unrealized (loss) gain on available-for-sale securities	(146,888)		13,091		(302,603)		(20,309)
Other comprehensive (loss) income before tax effect	(146,888)		13,091		(302,603)		(20,309)
Tax effect on other comprehensive loss (income)	35,540		(3,421)		76,236		5,308
Other comprehensive (loss) income	(111,348)		9,670		(226,367)		(15,001)
Comprehensive (loss) income	$	(95,370)	$	88,740	$	(145,497)	$	155,671

See Condensed Notes to Consolidated Financial Statements.

6

Home BancShares, Inc.

Consolidated Statements of Stockholders’ Equity

Three and Six Months Ended June 30, 2022
(In thousands, except share data)	Common Stock		Capital Surplus		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total
Balances at January 1, 2022	$	1,637	$	1,487,373	$	1,266,249	$	10,462	$	2,765,721
Comprehensive income:
Net income	—		—		64,892		—		64,892
Other comprehensive loss	—		—		—		(115,019)		(115,019)
Net issuance of 15,909 shares of common stock from exercise of stock options	1		129		—		—		130
Repurchase of 180,000 shares of common stock	(2)		(4,087)		—		—		(4,089)
Share-based compensation net issuance of 222,717 shares of restricted common stock	2		2,109		—		—		2,111
Cash dividends – Common Stock, $0.165 per share	—		—		(27,043)		—		(27,043)
Balances at March 31, 2022 (unaudited)	$	1,638	$	1,485,524	$	1,304,098	$	(104,557)	$	2,686,703
Comprehensive income:
Net Income	—		—		15,978		—		15,978
Other comprehensive loss	—		—		—		(111,348)		(111,348)
Net issuance of 1,500 shares of common stock from exercise of stock options	—		26		—		—		26
Issuance of 42,425,352 shares of common stock including approximately $2.5 million in certain stock award settlements and stock issuance costs - Happy Bancshares acquisition	424		960,866		—		—		961,290
Repurchase of 1,032,732 shares of common stock	(10)		(22,482)		—		—		(22,492)
Share-based compensation net issuance of 138,499 shares of restricted common stock	1		2,337		—		—		2,338
Cash dividends – Common Stock, $0.165 per share	—		—		(33,930)		—		(33,930)
Balances at June 30, 2022 (unaudited)	$	2,053	$	2,426,271	$	1,286,146	$	(215,905)	$	3,498,565

See Condensed Notes to Consolidated Financial Statements.

7

Home BancShares, Inc.

Consolidated Statements of Stockholders’ Equity

For the Three and Six Months Ended June 30, 2021
(In thousands, except share data)	Common Stock		Capital Surplus		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total
Balances at January 1, 2021	$	1,651	$	1,520,617	$	1,039,370	$	44,120	$	2,605,758
Comprehensive income:
Net income	—		—		91,602		—		91,602
Other comprehensive loss	—		—		—		(24,671)		(24,671)
Net issuance of 161,434 shares of common stock from exercise of stock options	1		2,321		—		—		2,322
Repurchase of 330,000 shares of common stock	(3)		(8,767)		—		—		(8,770)
Share-based compensation net issuance of 214,684 shares of restricted common stock	2		2,115		—		—		2,117
Cash dividends – Common Stock, $0.14 per share	—		—		(23,154)		—		(23,154)
Balances at March 31, 2021 (unaudited)	$	1,651	$	1,516,286	$	1,107,818	$	19,449	$	2,645,204
Comprehensive income:
Net income	—		—		79,070		—		79,070
Other comprehensive income	—		—		—		9,670		9,670
Net issuance of 3,628 shares of common stock from exercise of stock options	—		—		—		—		—
Repurchase of 635,000 shares of common stock	(6)		(16,947)		—		—		(16,953)
Share-based compensation net issuance of 21,500 shares of restricted common stock	—		2,276		—		—		2,276
Cash dividends – Common Stock, $0.14 per share	—		—		(23,078)		—		(23,078)
Balances at June 30, 2021 (unaudited)	$	1,645	$	1,501,615	$	1,163,810	$	29,119	$	2,696,189

See Condensed Notes to Consolidated Financial Statements.

8

Home BancShares, Inc.

Consolidated Statements of Cash Flows

	Six Months Ended June 30, 2022
(In thousands)	2022		2021
	(Unaudited)
Operating Activities
Net income	$	80,870	$	170,672
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization	15,480		9,535
Increase in value of equity securities	(324)		(7,032)
Amortization of securities, net	12,874		13,693
Accretion of purchased loans	(8,266)		(11,282)
Share-based compensation	4,449		4,393
Gain on assets	(600)		(2,336)
Provision for credit losses - acquired loans	45,170		—
Provision for credit losses - acquired unfunded commitments	11,410		—
Provision for credit losses - unfunded commitments	—		(4,752)
Provision for credit losses - acquired held-to-maturity investment securities	2,005		—
Deferred income tax effect	(18,645)		3,311
Increase in cash value of life insurance	(1,632)		(1,039)
Originations of mortgage loans held for sale	(308,850)		(393,886)
Proceeds from sales of mortgage loans held for sale	243,823		419,052
Changes in assets and liabilities:
Accrued interest receivable	(1,548)		11,803
Other assets	(1,067)		5,116
Accrued interest payable and other liabilities	27,466		(4,832)
Net cash provided by operating activities	102,615		212,416
Investing Activities
Net (increase) decrease in loans, excluding purchased loans	(126,794)		989,477
Purchases of investment securities – available-for-sale	(655,393)		(968,660)
Purchases of investment securities - held-to-maturity	(501,882)		—
Proceeds from maturities of investment securities – available-for-sale	333,315		336,834
Proceeds from maturities of investment securities – held-to-maturity	250,020		—
Proceeds from sales of investment securities – available-for-sale	—		18,112
Purchases of equity securities	(29,975)		(10,460)
Proceeds from sales of equity securities	13,778		15,354
Purchase of other investments	(27,867)		(5,084)
Proceeds from foreclosed assets held for sale	1,874		5,422
Proceeds from sale of SBA loans	2,859		12,361
Purchases of premises and equipment, net	(6,596)		(6,252)
Return of investment on cash value of life insurance	—		418
Purchase of marine loan portfolio	(242,617)		—
Net cash received - market acquisition	858,898		—
Net cash (used in) provided by investing activities	(130,380)		387,522
Financing Activities
Net (decrease) increase in deposits	(535,708)		1,165,551
Net decrease in securities sold under agreements to repurchase	(22,313)		(18,391)
Net decrease in FHLB and other borrowed funds	(78,330)		—
Retirement of subordinated debentures	(300,000)		—
Proceeds from issuance of subordinated debentures	296,444		—
Redemption of trust preferred securities	(78,869)		—
Proceeds from exercise of stock options	156		2,322
Repurchase of common stock	(26,581)		(25,723)
Dividends paid on common stock	(60,973)		(46,232)
Net cash (used in) provided by financing activities	(806,174)		1,077,527
Net change in cash and cash equivalents	(833,939)		1,677,465
Cash and cash equivalents – beginning of year	3,650,315		1,263,788
Cash and cash equivalents – end of period	$	2,816,376	$	2,941,253

See Condensed Notes to Consolidated Financial Statements.

9

Home BancShares, Inc.

Condensed Notes to Consolidated Financial Statements

(Unaudited)

1. Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

Home BancShares, Inc. (the “Company” or “HBI”) is a bank holding company headquartered in Conway, Arkansas. The Company is primarily engaged in providing a full range of banking services to individual and corporate customers through its wholly-owned community bank subsidiary – Centennial Bank (sometimes referred to as “Centennial” or the “Bank”). The Bank has branch locations in Arkansas, Florida, South Alabama, Texas and New York City. The Company is subject to competition from other financial institutions. The Company also is subject to the regulation of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities.

A summary of the significant accounting policies of the Company follows:

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Bank is the only significant subsidiary upon which management makes decisions regarding how to allocate resources and assess performance. Each of the branches of the Bank provide a group of similar banking services, including such products and services as commercial, real estate and consumer loans, time deposits, checking and savings accounts. The individual bank branches have similar operating and economic characteristics. While the chief decision maker monitors the revenue streams of the various products, services and branch locations, operations are managed, and financial performance is evaluated on a company-wide basis. Accordingly, all of the banking services and branch locations are considered by management to be aggregated into one reportable operating segment.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, the valuation of investment securities, the valuation of foreclosed assets and the valuations of assets acquired, and liabilities assumed in business combinations. In connection with the determination of the allowance for credit losses and the valuation of foreclosed assets, management obtains independent appraisals for significant properties.

Principles of Consolidation

The consolidated financial statements include the accounts of HBI and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Various items within the accompanying consolidated financial statements for previous years have been reclassified to provide more comparative information. These reclassifications had no effect on net earnings or stockholders’ equity.

Interim financial information

The accompanying unaudited consolidated financial statements as of June 30, 2022 and 2021 have been prepared in condensed format, and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

10

The information furnished in these interim statements reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year. The interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2021 Form 10-K, filed with the Securities and Exchange Commission.

Loans Receivable and Allowance for Credit Losses

Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balance adjusted for any charge-offs, deferred fees or costs on originated loans. Interest income on loans is accrued over the term of the loans based on the principal balance outstanding. Loan origination fees and direct origination costs are capitalized and recognized as adjustments to yield on the related loans.

The allowance for credit losses on loans receivable is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed and expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, commercial real estate price index, housing price index and national retail sales index.

The allowance for credit losses is measured based on call report segment as these types of loans exhibit similar risk characteristics. The identified loan segments are as follows:

•1-4 family construction

•All other construction

•1-4 family revolving home equity lines of credit (“HELOC”) & junior liens

•1-4 family senior liens

•Multifamily

•Owner occupied commercial real estate

•Non-owner occupied commercial real estate

•Commercial & industrial, agricultural, non-depository financial institutions, purchase/carry securities, other

•Consumer auto

•Other consumer

•Other consumer - SPF

The allowance for credit losses for each segment is measured through the use of the discounted cash flow method. Loans evaluated individually that are considered to be collateral dependent are not included in the collective evaluation. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. For loans that are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation if a specific reserve is not recorded.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies:

•Management has a reasonable expectation at the reporting date that troubled debt restructuring will be executed with an individual borrower.

•The extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

11

Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factors ("Q-Factors") and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions.

Loans considered impaired, according to ASC 326, are loans for which, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. The aggregate amount of impairment of loans is utilized in evaluating the adequacy of the allowance for credit losses and amount of provisions thereto. Losses on impaired loans are charged against the allowance for credit losses when in the process of collection, it appears likely that such losses will be realized. The accrual of interest on impaired loans is discontinued when, in management’s opinion the collection of interest is doubtful or generally when loans are 90 days or more past due. When accrual of interest is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Loans are placed on non-accrual status when management believes that the borrower’s financial condition, after giving consideration to economic and business conditions and collection efforts, is such that collection of interest is doubtful, or generally when loans are 90 days or more past due. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Accrued interest related to non-accrual loans is generally charged against the allowance for credit losses when accrued in prior years and reversed from interest income if accrued in the current year. Interest income on non-accrual loans may be recognized to the extent cash payments are received, although the majority of payments received are usually applied to principal. Non-accrual loans are generally returned to accrual status when principal and interest payments are less than 90 days past due, the customer has made required payments for at least six months, and we reasonably expect to collect all principal and interest.

Acquisition Accounting and Acquired Loans

The Company accounts for its acquisitions under FASB ASC Topic 805, Business Combinations, which requires the use of the purchase method of accounting. All identifiable assets acquired, including loans, are recorded at fair value. In accordance with ASC 326, the Company records both a discount or premium and an allowance for credit losses on acquired loans. All purchased loans are recorded at fair value in accordance with the fair value methodology prescribed in FASB ASC Topic 820, Fair Value Measurements. The fair value estimates associated with the loans include estimates related to expected prepayments and the amount and timing of undiscounted expected principal, interest and other cash flows.

Purchased loans that have experienced more than insignificant credit deterioration since origination are purchase credit deteriorated (“PCD”) loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for impairment. These models utilize a peer group benchmark in order to determine the probability of default and loss given default to be used in the calculation. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses.

For further discussion of the Company’s acquisitions, see Note 2 to the Condensed Notes to Consolidated Financial Statements.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

12

Revenue Recognition

Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as our loans, letters of credit, investment securities and mortgage lending income, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our significant revenue-generating activities that are within the scope of ASC Topic 606, which are presented in our income statements as components of non-interest income are as follows:

•Service charges on deposit accounts – These represent general service fees for monthly account maintenance and activity or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied.

•Other service charges and fees – These represent credit card interchange fees and Centennial Commercial Finance Group (“Centennial CFG”) loan fees. The interchange fees are recorded in the period the performance obligation is satisfied which is generally the cash basis based on agreed upon contracts. The Centennial CFG loan fees are based on loan or other negotiated agreements with customers and are accounted for under ASC Topic 310.

Earnings per Share

Basic earnings per share is computed based on the weighted-average number of shares outstanding during each year. Diluted earnings per share is computed using the weighted-average shares and all potential dilutive shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the following periods:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands)
Net income	$	15,978	$	79,070	$	80,870	$	170,672
Average shares outstanding	205,683		164,781		184,851		165,018
Effect of common stock options	332		445		372		296
Average diluted shares outstanding	206,015		165,226		185,223		165,314
Basic earnings per share	$	0.08	$	0.48	$	0.44	$	1.03
Diluted earnings per share	$	0.08	$	0.48	$	0.44	$	1.03

2. Business Combinations

Acquisition of Happy Bancshares, Inc.

On April 1, 2022, the Company completed the acquisition of Happy Bancshares, Inc. (“Happy”), and merged Happy State Bank into Centennial Bank. The Company issued approximately 42.4 million shares of its common stock valued at approximately $958.8 million as of April 1, 2022. In addition, the holders of certain Happy stock-based awards received approximately $3.7 million in cash in cancellation of such awards, for a total transaction value of approximately $962.5 million. The acquisition added new markets for expansion and brings complementary businesses together to drive synergies and growth.

Including the effects of the known purchase accounting adjustments, as of the acquisition date, Happy had approximately $6.68 billion in total assets, $3.65 billion in loans and $5.86 billion in customer deposits. Happy formerly operated its banking business from 62 locations in Texas.

13

The purchase price allocation and certain fair value measurements remain preliminary due to the timing of the acquisition. The Company will continue to review the estimated fair values of loans, deposits and intangible assets, and to evaluate the assumed tax positions and contingencies.

The Company has determined that the acquisition of the net assets of Happy constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired and liabilities assumed are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. The following schedule is a preliminary breakdown of the assets acquired and liabilities assumed as of the acquisition date:

	Happy Bancshares, Inc.
	Acquired from Happy		Fair Value Adjustments		As Recorded by HBI
	(Dollars in thousands)
Assets
Cash and due from banks	$	112,999	$	(132)	$	112,867
Interest-bearing deposits with other banks	746,031		—		746,031
Cash and cash equivalents	859,030		(132)		858,898
Investment securities - available-for-sale, net of allowance for credit losses	1,773,540		8,485		1,782,025
Total investment securities	1,773,540		8,485		1,782,025
Loans receivable	3,657,009		(4,303)		3,652,706
Allowance for credit losses	(42,224)		25,408		(16,816)
Loans receivable, net	3,614,785		21,105		3,635,890
Bank premises and equipment, net	153,642		(11,575)		142,067
Foreclosed assets held for sale	193		(77)		116
Cash value of life insurance	105,049		3		105,052
Accrued interest receivable	31,575		—		31,575
Deferred tax asset, net	32,908		2,506		35,414
Goodwill	130,428		(130,428)		—
Core deposit and other intangibles	10,672		31,591		42,263
Other assets	43,330		6,422		49,752
Total assets acquired	$	6,755,152	$	(72,100)	$	6,683,052
Liabilities
Deposits
Demand and non-interest-bearing	$	1,932,756	$	—	$	1,932,756
Savings and interest-bearing transaction accounts	3,519,652		—		3,519,652
Time deposits	401,899		903		402,802
Total deposits	5,854,307		903		5,855,210
FHLB and other borrowed funds	74,212		4,118		78,330
Accrued interest payable and other liabilities	50,889		(6,130)		44,759
Subordinated debentures	159,965		7,625		167,590
Total liabilities assumed	$	6,139,373	$	6,516	$	6,145,889
Equity
Total equity assumed	615,779		(615,779)		—
Total liabilities and equity assumed	$	6,755,152	$	(609,263)	$	6,145,889
Net assets acquired					537,163
Purchase price					962,538
Goodwill					$	425,375

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The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above:

Cash and due from banks, interest-bearing deposits with other banks and federal funds sold – The carrying amount of these assets was deemed a reasonable estimate of fair value based on the short-term nature of these assets.

Investment securities – Investment securities were acquired from Happy with an approximately $8.5 million adjustment to fair value based upon quoted market prices. Otherwise the book value was deemed to approximate fair value.

Loans – Fair values for loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan, whether or not the loan was amortizing and current discount rates. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity concerns. The discount rate does not include a factor for credit losses as that has been included in the estimated cash flows. Loans were grouped together according to similar characteristics and were treated in the aggregate when applying various valuation techniques. See Note 5 to the Condensed Notes to Consolidated Financial Statements, for additional information related to purchased financial assets with credit deterioration.

Bank premises and equipment – Bank premises and equipment were acquired from Happy with a $11.6 million adjustment to fair value. This represents the difference between current appraisals completed in connection with the acquisition and book value acquired.

Foreclosed assets held for sale – These assets are presented at the estimated fair values that management expects to receive when the properties are sold, net of related costs of disposal.

Cash value of life insurance – Bank owned life insurance is carried at its current cash surrender value, which is the most reasonable estimate of fair value.

Accrued interest receivable – The carrying amount of these assets was deemed a reasonable estimate of the fair value.

Core deposit intangible and other intangibles – This core deposit intangible asset represents the value of the relationships that Happy had with its deposit customers. The fair value of this intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base, and the net maintenance cost attributable to customer deposits.

Deposits – The fair values used for the demand and savings deposits that comprise the transaction accounts acquired, by definition, equal the amount payable on demand at the acquisition date. The $903,000 fair value adjustment applied for time deposits was because the weighted-average interest rate of Happy’s certificates of deposits were estimated to be below the current market rates.

FHLB borrowed funds – The fair value of FHLB borrowed funds is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

Accrued interest payable and other liabilities – The fair value adjustment results from certain liabilities whose value was estimated to be more or less than book value, such as certain accounts payable and other miscellaneous liabilities. The carrying amount of accrued interest and the remainder of other liabilities was deemed to be a reasonable estimate of fair value.

Subordinated debentures – The fair value of subordinated debentures is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

15

The unaudited pro-forma combined consolidated financial information presents how the combined financial information of HBI and Happy might have appeared had the businesses actually been combined. The following schedule represents the unaudited pro forma combined financial information as of the three and six-month periods ended June 30, 2022 and 2021, assuming the acquisition was completed as of January 1, 2021:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands, except per share data)
Total interest income	$	217,013	$	211,279	$	419,318	$	418,143
Total non-interest income	44,581		44,427		88,151		101,485
Net income available to all shareholders	96,923		34,536		182,557		129,653
Basic earnings per common share	$	0.47	$	0.17	$	0.89	$	0.63
Diluted earnings per common share	$	0.47	$	0.17	$	0.88	$	0.62

The unaudited pro-forma consolidated financial information is presented for illustrative purposes only and does not indicate the financial results of the combined company had the companies actually been combined at the beginning of the period presented and had the impact of possible significant revenue enhancements and expense efficiencies from in-market cost savings, among other factors, been considered and, accordingly, does not attempt to predict or suggest future results. Pro-forma results include Happy merger expenses of $48.7 million and $49.6 million, provision for credit losses on acquired loans of $45.2 million, provision for credit losses on acquired unfunded commitments of $11.4 million and provision for credit losses on acquired investment securities of $2.0 million for the three and six months ended June 30, 2022 and 2021, respectively. The pro-forma financial information also does not necessarily reflect what the historical results of the combined company would have been had the companies been combined during this period.

Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. For PCD loans, the initial estimate of expected credit losses is recognized in the allowance for credit losses on the date of acquisition using the same methodology as other loans and leases held-for-investment. The following table provides a summary of loans purchased as part of the Happy acquisition with credit deterioration at acquisition:

	April 1, 2022
	(In thousands)
Purchased Loans with Credit Deterioration:
Par value	$	165,028
Allowance for credit losses at acquisition	(16,816)
Premium on acquired loans	684
Purchase price	$	148,896

16

3. Investment Securities

The following table summarizes the amortized cost and fair value of securities that are classified as available-for-sale and held-to-maturity are as follows:

	June 30, 2022
	Available-for-Sale
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	465,293	$	—	$	465,293	$	2,822	$	(16,658)	$	451,457
Residential mortgage-backed securities	1,780,519		—		1,780,519		657		(152,990)		1,628,186
Commercial mortgage-backed securities	363,117		—		363,117		14		(13,067)		350,064
State and political subdivisions	1,027,748		(842)		1,026,906		1,111		(93,486)		934,531
Other securities	444,184		—		444,184		131		(17,044)		427,271
Total	$	4,080,861	$	(842)	$	4,080,019	$	4,735	$	(293,245)	$	3,791,509

	June 30, 2022
	Held-to-Maturity
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. Treasuries	$	277,688	$	—	$	277,688	$	—	$	(1,659)	$	276,029
State and political subdivisions	1,091,098		(2,005)		1,089,093		26		(91,868)		997,251
Total	$	1,368,786	$	(2,005)	$	1,366,781	$	26	$	(93,527)	$	1,273,280

	December 31, 2021
	Available-for-Sale
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	433,829	$	—	$	433,829	$	2,375	$	(3,225)	$	432,979
Residential mortgage-backed securities	1,175,185		—		1,175,185		4,085		(18,551)		1,160,719
Commercial mortgage-backed securities	372,702		—		372,702		6,521		(1,968)		377,255
State and political subdivisions	973,318		(842)		972,476		26,296		(1,794)		996,978
Other securities	151,449		—		151,449		1,781		(1,354)		151,876
Total	$	3,106,483	$	(842)	$	3,105,641	$	41,058	$	(26,892)	$	3,119,807

On April 1, 2022, the Company completed the acquisition of Happy. Including the effects of the known purchase accounting adjustments, as of the acquisition date, Happy had approximately $1.78 billion in investments, net of purchase accounting adjustments. The Company classified approximately $1.12 billion of investments acquired from Happy as held-to-maturity at the acquisition date.

17

Assets, principally investment securities, having a carrying value of approximately $2.77 billion and $1.15 billion at June 30, 2022 and December 31, 2021, respectively, were pledged to secure public deposits, as collateral for repurchase agreements, and for other purposes required or permitted by law. Investment securities pledged as collateral for repurchase agreements totaled approximately $118.6 million and $140.9 million at June 30, 2022 and December 31, 2021, respectively.

The amortized cost and estimated fair value of securities classified as available-for-sale and held-to-maturity at June 30, 2022, by contractual maturity, are shown below. Expected maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	21,153	$	21,175	$	249,949	$	249,689
Due after one year through five years	145,743		140,380		4,757		4,690
Due after five years through ten years	487,573		459,863		181,961		168,691
Due after ten years	1,277,149		1,186,305		932,119		850,210
Mortgage - backed securities: Residential	1,780,519		1,628,186		—		—
Mortgage - backed securities: Commercial	363,117		350,064		—		—
Other	5,607		5,536		—		—
Total	$	4,080,861	$	3,791,509	$	1,368,786	$	1,273,280

During the three and six months ended June 30, 2022, no available-for-sale securities were sold.

During the three months ended June 30, 2021, no available-for-sale securities were sold. There were no realized gains or losses recorded on sales for the three months ended June 30, 2021. During the six months ended June 30, 2021, $17.9 million in available-for-sale securities were sold. The gross realized gains on the sales totaled $219,000 for the six months ended June 30, 2021.

The following table shows gross unrealized losses and estimated fair value of investment securities classified as available-for-sale and held-to-maturity, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of June 30, 2022 and December 31, 2021.

	June 30, 2022
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Available-for-sale:
U.S. government-sponsored enterprises	$	115,827	$	(10,132)	$	67,691	$	(6,526)	$	183,518	$	(16,658)
Residential mortgage-backed securities	1,205,092		(105,830)		253,686		(47,160)		1,458,778		(152,990)
Commercial mortgage-backed securities	299,151		(9,507)		44,291		(3,560)		343,442		(13,067)
State and political subdivisions	789,862		(89,276)		22,922		(4,210)		812,784		(93,486)
Other securities	293,266		(15,278)		17,222		(1,766)		310,488		(17,044)
Total	$	2,703,198	$	(230,023)	$	405,812	$	(63,222)	$	3,109,010	$	(293,245)
Held-to-maturity:
U.S. Treasuries	276,029		(1,659)		—		—		276,029		(1,659)
State and political subdivisions	998,550		(91,868)		—		—		998,550		(91,868)
Total	$	1,274,579	$	(93,527)	$	—	$	—	$	1,274,579	$	(93,527)

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	December 31, 2021
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. government-sponsored enterprises	$	120,730	$	(1,356)	$	78,124	$	(1,869)	$	198,854	$	(3,225)
Residential mortgage-backed securities	854,807		(15,246)		104,897		(3,305)		959,704		(18,551)
Commercial mortgage-backed securities	100,702		(1,251)		28,711		(717)		129,413		(1,968)
State and political subdivisions	136,135		(1,282)		18,647		(512)		154,782		(1,794)
Other securities	75,744		(1,316)		2,703		(38)		78,447		(1,354)
Total	$	1,288,118	$	(20,451)	$	233,082	$	(6,441)	$	1,521,200	$	(26,892)

The Company evaluates all securities quarterly to determine if any debt securities in a loss position require a provision for credit losses in accordance with ASC 326, Measurement of Credit Losses on Financial Instruments. The Company first assesses whether it intends to sell or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities that do not meet this criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

The Company recorded a $2.0 million provision for credit losses on the held-to-maturity investment securities during the second quarter of 2022 as a result of the investment securities acquired as part of the Happy acquisition. Of the Company's held-to-maturity securities, $1.09 billion, or 79.7% are municipal securities. To estimate the necessary loss provision, the Company utilized historical default and recovery rates of the municipal bond sector and applied these rates using a pooling method. The remainder of investments classified as held-to-maturity are U.S. Treasury securities. Due to the inherent low risk in U.S. Treasury securities, no provision for credit loss was established on that portion of the portfolio.

At June 30, 2022, the Company determined that the allowance for credit losses of $842,000, resulting from economic uncertainty, was adequate for the available-for-sale investment portfolio, and the allowance for credit losses for the held-to-maturity portfolio resulting from the Happy acquisition was considered adequate. No additional provision for credit losses was considered necessary for the portfolio.

Available-for-Sale Investment Securities
	June 30, 2022		December 31, 2021
	(In thousands)
Allowance for credit losses:
Beginning balance	$	842	$	842
Provision for credit loss	—		—
Balance, June 30	$	842	$	842
Provision for credit loss			—
Balance, December 31, 2021			$	842

19

Held-to-Maturity Investment Securities
	June 30, 2022				December 31, 2021
	State and Political Subdivisions		U.S. Treasuries		State and Political Subdivisions		U.S. Treasuries
Allowance for credit losses:	(In thousands)
Beginning balance	$	—	$	—	$	—	$	—
Provision for credit loss - acquired securities	(2,005)		—		—		—
Securities charged-off	—		—		—		—
Recoveries	—		—		—		—
Balance, June 30, 2022	$	(2,005)	$	—	$	—	$	—

For the six months ended June 30, 2022, the Company had investment securities with approximately $63.2 million in unrealized losses, which have been in continuous loss positions for more than twelve months. The Company’s assessments indicated that the cause of the market depreciation was primarily due to the change in interest rates and not the issuer’s financial condition or downgrades by rating agencies. In addition, approximately 33.4% of the principal balance from the Company’s investment portfolio will mature or are expected to pay down within five years or less. As a result, the Company has the ability and intent to hold such securities until maturity.

As of June 30, 2022, the Company's available-for-sale securities portfolio consisted of 1,644 investment securities, 1,333 of which were in an unrealized loss position. As noted in the table above, the total amount of the unrealized loss was $293.2 million. The U.S. government-sponsored enterprises portfolio contained unrealized losses of $16.7 million on 58 securities. The residential mortgage-backed securities portfolio contained $153.0 million of unrealized losses on 575 securities, and the commercial mortgage-backed securities portfolio contained $13.1 million of unrealized losses on 152 securities. The state and political subdivisions portfolio contained $93.5 million of unrealized losses on 466 securities. In addition, the other securities portfolio contained $17.0 million of unrealized losses on 82 securities. The unrealized losses on the Company's investments were a result of interest rate changes. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value was attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company has determined that an additional provision for credit losses is not necessary as of June 30, 2022.

As of June 30, 2022, the Company's held-to-maturity securities portfolio consisted of 482 investment securities, 480 of which were in an unrealized loss position. As noted in the table above, the total amount of the unrealized loss was $93.5 million. The U.S Treasury portfolio contained unrealized losses of $1.7 million on 5 securities, and the state and political subdivisions portfolio contained $91.9 million of unrealized losses on 475 securities.

The following table summarizes bond ratings for the Company’s held-to-maturity portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of June 30, 2022:

	State and Political Subdivisions		U.S. Treasuries		Total
	(In thousands)
Aaa/AAA	$	217,912	$	277,688	$	495,600
Aa/AA	837,675		—		837,675
A	33,677		—		33,677
Baa/BBB	—		—		—
Not rated	1,834		—		1,834
Total	$	1,091,098	$	277,688	$	1,368,786

20

Income earned on securities for the three and six months ended June 30, 2022 and 2021, is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands)
Taxable
Available-for-sale	$	14,493	$	7,185	$	23,238	$	13,438
Held-to-maturity	6,448		—		6,783		—
Non-taxable
Available-for-sale	4,751		4,905		9,459		9,976
Held-to-maturity	2,974		—		2,973		—
Total	$	28,666	$	12,090	$	42,453	$	23,414

4. Loans Receivable

The various categories of loans receivable are summarized as follows:

	June 30, 2022		December 31, 2021
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	5,092,539	$	3,889,284
Construction/land development	2,595,384		1,850,050
Agricultural	329,106		130,674
Residential real estate loans
Residential 1-4 family	1,708,221		1,274,953
Multifamily residential	389,633		280,837
Total real estate	10,114,883		7,425,798
Consumer	1,106,343		825,519
Commercial and industrial	2,187,771		1,386,747
Agricultural	324,630		43,920
Other	190,246		154,105
Total loans receivable	13,923,873		9,836,089
Allowance for credit losses	(294,267)		(236,714)
Loans receivable, net	$	13,629,606	$	9,599,375

On April 1, 2022, the Company completed the acquisition of Happy. Including the effects of the known purchase accounting adjustments, as of the acquisition date, Happy had approximately $3.65 billion in loans.

During the three months ended June 30, 2022, the Company did not sell any guaranteed portions of certain SBA loans. During the six months ended June 30, 2022, the Company sold $2.8 million of the guaranteed portions of certain SBA loans, which resulted in a gain of approximately $95,000. During the three months ended June 30, 2021, the Company did not sell any guaranteed portions of certain SBA loans. During the six months ended June 30, 2021, the Company sold $11.1 million of the guaranteed portions of certain SBA loans, which resulted in a gain of approximately $1.1 million.

21

Mortgage loans held for sale of approximately $137.8 million and $72.7 million at June 30, 2022 and December 31, 2021, respectively, are included in residential 1-4 family loans. Mortgage loans held for sale are carried at the lower of cost or fair value, determined using an aggregate basis. Gains and losses resulting from sales of mortgage loans are recognized when the respective loans are sold to investors. Gains and losses are determined by the difference between the selling price and the carrying amount of the loans sold, net of discounts collected or paid. The Company obtains forward commitments to sell mortgage loans to reduce market risk on mortgage loans in the process of origination and mortgage loans held for sale. The forward commitments acquired by the Company for mortgage loans in process of origination are considered mandatory forward commitments. Because these commitments are structured on a mandatory basis, the Company is required to substitute another loan or to buy back the commitment if the original loan does not fund. These commitments are derivative instruments and their fair values at June 30, 2022 and December 31, 2021 were not material.

Purchased loans that have experienced more than insignificant credit deterioration since origination are purchase credit deteriorated (“PCD”) loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for impairment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses. The Company held approximately $152.3 million and $448,000 in PCD loans, as of June 30, 2022 and December 31, 2021, respectively. The balance consisted of $151.8 million resulting from the acquisition of Happy and $432,000 from the acquisition of LH-Finance.

A description of our accounting policies for loans, impaired loans and non-accrual loans are set forth in our 2021 Form 10-K filed with the SEC on February 24, 2022.

5. Allowance for Credit Losses, Credit Quality and Other

The Company uses the discounted cash flow (“DCF”) method to estimate expected losses for all of the Company’s loan pools. These pools are as follows: construction & land development; other commercial real estate; residential real estate; commercial & industrial; and consumer & other. The loan portfolio pools were selected in order to generally align with the loan categories specified in the quarterly call reports required to be filed with the Federal Financial Institutions Examination Council. For each of these loan pools, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers.

Management qualitatively adjusts model results for risk factors ("Q-Factors") that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These Q-Factors and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions.

Each year management evaluates the performance of the selected models used in the CECL calculation through backtesting. Based on the results of the testing, management determines if the various models produced accurate results compared to the actual losses incurred for the current economic environment. Management then determines if changes to the input assumptions and economic factors would produce a stronger overall calculation that is more responsive to changes in economic conditions. The Company continues to use regression analysis to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default for the changes in the economic factors for the loss driver segments. Based on this analysis during the second quarter of 2022, management determined the previously selected economic factors for the various loss driver segments were appropriate and no changes were necessary. The identified loss drivers by segment are included below as of both June 30, 2022 and December 31, 2021.

22

Loss Driver Segment	Call Report Segment(s)	Modeled Economic Factors
1-4 Family Construction	1a1	National Unemployment (%) & Housing Price Index (%)
All Other Construction	1a2	National Unemployment (%) & Gross Domestic Product (%)
1-4 Family Revolving HELOC & Junior Liens	1c1	National Unemployment (%) & Housing Price Index – CoreLogic (%)
1-4 Family Revolving HELOC & Junior Liens	1c2b	National Unemployment (%) & Gross Domestic Product (%)
1-4 Family Senior Liens	1c2a	National Unemployment (%) & Gross Domestic Product (%)
Multifamily	1d	Rental Vacancy Rate (%) & Housing Price Index – Case-Schiller (%)
Owner Occupied CRE	1e1	National Unemployment (%) & Gross Domestic Product (%)
Non-Owner Occupied CRE	1e2,1b,8	National Unemployment (%) & Gross Domestic Product (%)
Commercial & Industrial, Agricultural, Non-Depository Financial Institutions, Purchase/Carry Securities, Other	4a, 3, 9a, 9b1, 9b2, 10, Other	National Unemployment (%) & National Retail Sales (%)
Consumer Auto	6c	National Unemployment (%) & National Retail Sales (%)
Other Consumer	6b, 6d	National Unemployment (%) & National Retail Sales (%)
Other Consumer - SPF	6d	National Unemployment (%)

For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts to a historical loss rate over four quarters on a straight-line basis. Management leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics.

The combination of adjustments for credit expectations (default and loss) and time expectations prepayment, curtailment, and time to recovery produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (“NPV”). An allowance for credit loss is established for the difference between the instrument’s NPV and amortized cost basis.

Construction/Land Development and Other Commercial Real Estate Loans. We originate non-farm and non-residential loans (primarily secured by commercial real estate), construction/land development loans, and agricultural loans, which are generally secured by real estate located in our market areas. Our commercial mortgage loans are generally collateralized by first liens on real estate and amortized (where defined) over a 15 to 30 year period with balloon payments due at the end of one to five years. These loans are generally underwritten by assessing cash flow (debt service coverage), primary and secondary source of repayment, the financial strength of any guarantor, the strength of the tenant (if any), the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. Generally, we will loan up to 85% of the value of improved property, 65% of the value of raw land and 75% of the value of land to be acquired and developed. A first lien on the property and assignment of lease is required if the collateral is rental property, with second lien positions considered on a case-by-case basis.

Residential Real Estate Loans. We originate one to four family, residential mortgage loans generally secured by property located in our primary market areas. Residential real estate loans generally have a loan-to-value ratio of up to 90%. These loans are underwritten by giving consideration to many factors including the borrower’s ability to pay, stability of employment or source of income, debt-to-income ratio, credit history and loan-to-value ratio.

Commercial and Industrial Loans. Commercial and industrial loans are made for a variety of business purposes, including working capital, inventory, equipment and capital expansion. The terms for commercial loans are generally one to seven years Commercial loan applications must be supported by current financial information on the borrower and, where appropriate, by adequate collateral. Commercial loans are generally underwritten by addressing cash flow (debt service coverage), primary and secondary sources of repayment, the financial strength of any guarantor, the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. The loan to value ratio depends on the type of collateral. Generally, accounts receivable are financed at between 50% and 80% of accounts receivable less than 60 days past due. Inventory financing will range between 50% and 80% (with no work in process) depending on the borrower and nature of inventory. We require a first lien position for those loans.

Consumer & Other Loans. Our consumer & other loans are primarily composed of loans to finance USCG registered high-end sail and power boats. The performance of consumer & other loans will be affected by the local and regional economies as well as the rates of personal bankruptcies, job loss, divorce and other individual-specific characteristics.

23

Off-Balance Sheet Credit Exposures. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit loss on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The Company uses the DCF method to estimate expected losses for all of the Company’s off-balance sheet credit exposures through the use of the existing DCF models for the Company’s loan portfolio pools. The off-balance sheet credit exposures exhibit similar risk characteristics as loans currently in the Company’s loan portfolio.

ASC 326 requires that both a discount and allowance for credit losses be recorded on loans during an acquisition. The Company completed the acquisition of Happy on April 1, 2022. As a result, the Company recorded $4.3 million in net loan discounts and a $16.8 million increase in the allowance for credit losses related to PCD loans. In addition, the Company recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count" and an $11.4 million provision for credit losses on acquired unfunded commitments.

The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2022:

	Three Months Ended June 30, 2022
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	26,349	$	95,876	$	37,111	$	52,492	$	22,940	$	234,768
Allowance for credit losses on PCD loans - Happy acquisition	950		9,283		980		5,596		7		16,816
Loans charged off	—		—		(39)		—		(3,226)		(3,265)
Recoveries of loans previously charged off	302		52		23		221		180		778
Net loans recovered (charged off)	302		52		(16)		221		(3,046)		(2,487)
Provision for credit losses - acquired loans	7,205		18,711		7,380		11,303		571		45,170
Provision for credit losses	1,883		(8,727)		5,691		(1,303)		2,456		—
Balance, June 30	$	36,689	$	115,195	$	51,146	$	68,309	$	22,928	$	294,267

	Six Months Ended June 30, 2022
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	28,415	$	87,218	$	48,458	$	53,062	$	19,561	$	236,714
Allowance for credit losses on PCD loans - Happy acquisition	950		9,283		980		5,596		7		16,816
Loans charged off	—		—		(289)		(1,416)		(3,870)		(5,575)
Recoveries of loans previously charged off	317		78		49		330		368		1,142
Net loans recovered (charged off)	317		78		(240)		(1,086)		(3,502)		(4,433)
Provision for credit losses - acquired loans	7,205		18,711		7,380		11,303		571		45,170
Provision for credit losses	(198)		(95)		(5,432)		(566)		6,291		—
Balance, June 30	$	36,689	$	115,195	$	51,146	$	68,309	$	22,928	$	294,267

24

The following table presents the balances in the allowance for credit losses for the six-month period ended June 30, 2021 and the year ended December 31, 2021:

	Six Months Ended June 30, 2021 and Year Ended December 31, 2021
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	32,861	$	88,453	$	53,216	$	46,530	$	24,413	$	245,473
Loans charged off	—		(637)		(323)		(4,210)		(900)		(6,070)
Recoveries of loans previously charged    off	39		68		166		302		473		1,048
Net loans recovered (charged off)	39		(569)		(157)		(3,908)		(427)		(5,022)
Provision for credit loss - loans	(10,755)		5,243		(1,877)		9,660		(2,271)		—
Balance, June 30	22,145		93,127		51,182		52,282		21,715		240,451
Loans charged off	—		(9)		(222)		(4,032)		(1,328)		(5,591)
Recoveries of loans previously charged     off	19		717		517		289		312		1,854
Net loans recovered (charged off)	19		708		295		(3,743)		(1,016)		(3,737)
Provision for credit loss - loans	6,251		(6,617)		(3,019)		4,523		(1,138)		—
Balance, December 31	$	28,415	$	87,218	$	48,458	$	53,062	$	19,561	$	236,714

The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing as of June 30, 2022 and December 31, 2021:

	June 30, 2022
	Nonaccrual		Nonaccrual with Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	14,247	$	2,137	$	10,712
Construction/land development	1,050		—		246
Agricultural	194		—		711
Residential real estate loans
Residential 1-4 family	17,210		—		2,378
Multifamily residential	156		—		—
Total real estate	32,857		2,137		14,047
Consumer	1,321		—		43
Commercial and industrial	8,698		2,268		2,342
Agricultural & other	1,294		—		—
Total	$	44,170	$	4,405	$	16,432

25

	December 31, 2021
	Nonaccrual		Nonaccrual with Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	11,923	$	2,212	$	2,225
Construction/land development	1,445		—		—
Agricultural	897		—		—
Residential real estate loans
Residential 1-4 family	16,198		3,000		701
Multifamily residential	156		—		—
Total real estate	30,619		5,212		2,926
Consumer	1,648		—		2
Commercial and industrial	13,875		4,018		107
Agricultural & other	1,016		—		—
Total	$	47,158	$	9,230	$	3,035

The Company had $44.2 million and $47.2 million in nonaccrual loans for the periods ended June 30, 2022 and December 31, 2021, respectively. In addition, the Company had $16.4 million and $3.0 million in loans past due 90 days or more and still accruing for the periods ended June 30, 2022 and December 31, 2021, respectively.

The Company had $4.4 million and $9.2 million in nonaccrual loans with a specific reserve as of June 30, 2022 and December 31, 2021, respectively. The Company did not recognize any interest income on nonaccrual loans during the period ended June 30, 2022 or June 30, 2021.

The following table presents the amortized cost basis of collateral-dependent impaired loans by class of loans as of June 30, 2022 and December 31, 2021:

	June 30, 2022
	Commercial Real Estate		Residential Real Estate		Other
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	330,460	$	—	$	—
Construction/land development	1,296		—		—
Agricultural	905		—		—
Residential real estate loans
Residential 1-4 family	—		20,714		—
Multifamily residential	—		1,108		—
Total real estate	332,661		21,822		—
Consumer	—		—		1,376
Commercial and industrial	—		—		27,326
Agricultural & other	—		—		1,915
Total	$	332,661	$	21,822	$	30,617

26

	December 31, 2021
	Commercial Real Estate		Residential Real Estate		Other
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	283,919	$	—	$	—
Construction/land development	4,775		—		—
Agricultural	897		—		—
Residential real estate loans
Residential 1-4 family	—		19,775		—
Multifamily residential	—		1,300		—
Total real estate	289,591		21,075		—
Consumer	—		—		1,663
Commercial and industrial	—		—		18,193
Agricultural & other	—		—		1,016
Total	$	289,591	$	21,075	$	20,872

The Company had $385.1 million and $331.5 million in collateral-dependent impaired loans for the periods ended June 30, 2022 and December 31, 2021, respectively.

Loans that do not share risk characteristics are evaluated on an individual basis. For collateral-dependent impaired loans, excluding lodging and assisted living loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the fair value of the underlying collateral less estimated costs to sell. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan.

27

The following is an aging analysis for loans receivable as of June 30, 2022 and December 31, 2021:

	June 30, 2022
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	14,579	$	1,871	$	24,959	$	41,409	$	5,051,130	$	5,092,539	$	10,712
Construction/land development	3,553		2,145		1,296		6,994		2,588,390		2,595,384		246
Agricultural	4,106		337		905		5,348		323,758		329,106		711
Residential real estate loans
Residential 1-4 family	3,729		4,404		19,588		27,721		1,680,500		1,708,221		2,378
Multifamily residential	54		—		156		210		389,423		389,633		—
Total real estate	26,021		8,757		46,904		81,682		10,033,201		10,114,883		14,047
Consumer	701		122		1,364		2,187		1,104,156		1,106,343		43
Commercial and industrial	7,996		1,140		11,040		20,176		2,167,595		2,187,771		2,342
Agricultural & other	658		72		1,294		2,024		512,852		514,876		—
Total	$	35,376	$	10,091	$	60,602	$	106,069	$	13,817,804	$	13,923,873	$	16,432

	December 31, 2021
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	1,434	$	576	$	14,148	$	16,158	$	3,873,126	$	3,889,284	$	2,225
Construction/land development	92		22		1,445		1,559		1,848,491		1,850,050		—
Agricultural	—		472		897		1,369		129,305		130,674		—
Residential real estate loans
Residential 1-4 family	1,633		3,560		16,899		22,092		1,252,861		1,274,953		701
Multifamily residential	—		—		156		156		280,681		280,837		—
Total real estate	3,159		4,630		33,545		41,334		7,384,464		7,425,798		2,926
Consumer	60		205		1,650		1,915		823,604		825,519		2
Commercial and industrial	958		316		13,982		15,256		1,371,491		1,386,747		107
Agricultural and other	587		2		1,016		1,605		196,420		198,025		—
Total	$	4,764	$	5,153	$	50,193	$	60,110	$	9,775,979	$	9,836,089	$	3,035

Non-accruing loans at June 30, 2022 and December 31, 2021 were $44.2 million and $47.2 million, respectively.

Interest recognized on impaired loans, including those loans with a specific reserve, during the three and six months ended June 30, 2022 was approximately $4.8 million and $9.5 million, respectively. Interest recognized on impaired loans, including those loans with a specific reserve, during the three and six months ended June 30, 2021 was approximately $3.6 million and $7.1 million, respectively. The amount of interest recognized on impaired loans on the cash basis is not materially different than the accrual basis.

28

Credit Quality Indicators. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk rating of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) non-performing loans and (v) the general economic conditions in Arkansas, Florida, Texas, Alabama and New York.

The Company utilizes a risk rating matrix to assign a risk rating to each of its loans. Loans are rated on a scale from 1 to 8. Descriptions of the general characteristics of the 8 risk ratings are as follows:

•Risk rating 1 – Excellent. Loans in this category are to persons or entities of unquestionable financial strength, a highly liquid financial position, with collateral that is liquid and well margined. These borrowers have performed without question on past obligations, and the Bank expects their performance to continue. Internally generated cash flow covers current maturities of long-term debt by a substantial margin. Loans secured by bank certificates of deposit and savings accounts, with appropriate holds placed on the accounts, are to be rated in this category.

•Risk rating 2 – Good. These are loans to persons or entities with strong financial condition and above-average liquidity that have previously satisfactorily handled their obligations with the Bank. Collateral securing the Bank’s debt is margined in accordance with policy guidelines. Internally generated cash flow covers current maturities of long-term debt more than adequately. Unsecured loans to individuals supported by strong financial statements and on which repayment is satisfactory may be included in this classification.

•Risk rating 3 – Satisfactory. Loans to persons or entities with an average financial condition, adequate collateral margins, adequate cash flow to service long-term debt, and net worth comprised mainly of fixed assets are included in this category. These entities are minimally profitable now, with projections indicating continued profitability into the foreseeable future. Closely held corporations or businesses where a majority of the profits are withdrawn by the owners or paid in dividends are included in this rating category. Overall, these loans are basically sound.

•Risk rating 4 – Watch. Borrowers who have marginal cash flow, marginal profitability or have experienced an unprofitable year and a declining financial condition characterize these loans. The borrower has in the past satisfactorily handled debts with the Bank, but in recent months has either been late, delinquent in making payments, or made sporadic payments. While the Bank continues to be adequately secured, margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition. Other characteristics of borrowers in this class include inadequate credit information, weakness of financial statement and repayment capacity, but with collateral that appears to limit exposure.

•Risk rating 5 – Other Loans Especially Mentioned (“OLEM”). A loan criticized as OLEM has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. OLEM assets are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification.

•Risk rating 6 – Substandard. A loan classified as substandard is inadequately protected by the sound worth and paying capacity of the borrower or the collateral pledged. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual assets.

•Risk rating 7 – Doubtful. A loan classified as doubtful has all the weaknesses inherent in a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time; in fact, there is permanent impairment in the collateral securing the loan.

•Risk rating 8 – Loss. Assets classified as loss are considered uncollectible and of such little value that the continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may occur in the future. This classification is based upon current facts, not probabilities. Assets classified as loss should be charged-off in the period in which they became uncollectible.

The Company’s classified loans include loans in risk ratings 6, 7 and 8. Loans may be classified, but not considered impaired, due to one of the following reasons: (1) The Company has established minimum dollar amount thresholds for loan impairment testing. All loans over $2.0 million that are rated 5 – 8 are individually assessed for impairment on a quarterly basis. Loans rated 5 – 8 that fall under the threshold amount are not individually tested for impairment and therefore are not included in impaired loans; (2) of the loans that are above the threshold amount and tested for impairment, after testing, some are considered to not be impaired and are not included in impaired loans.

29

Based on the most recent analysis performed, the risk category of loans by class of loans as of June 30, 2022 and December 31, 2021 is as follows:

	June 30, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	245	$	—	$	161	$	—	$	406
Risk rating 2	—		—		—		122		—		4,188		—		4,310
Risk rating 3	168,978		512,718		295,392		299,302		354,655		970,977		219,357		2,821,379
Risk rating 4	185,605		310,791		184,980		177,523		400,884		464,893		134,386		1,859,062
Risk rating 5	8,462		—		4,181		14,622		36,376		232,972		95		296,708
Risk rating 6	876		—		12,785		29,675		5,630		61,442		266		110,674
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	363,921		823,509		497,338		521,489		797,545		1,734,633		354,104		5,092,539
Construction/land development
Risk rating 1	$	—	$	12	$	—	$	—	$	—	$	—	$	—	$	12
Risk rating 2	1,262		—		—		—		—		221		—		1,483
Risk rating 3	202,232		310,042		119,690		103,278		25,526		40,011		122,957		923,736
Risk rating 4	331,263		544,674		212,516		468,082		12,562		49,210		18,033		1,636,340
Risk rating 5	3,975		—		21,126		353		—		1,167		—		26,621
Risk rating 6	—		—		—		743		1		6,448		—		7,192
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total construction/land development	538,732		854,728		353,332		572,456		38,089		97,057		140,990		2,595,384
Agricultural
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		2,111		—		—		—		—		—		2,111
Risk rating 3	29,103		46,291		36,778		17,266		11,114		42,619		5,317		188,488
Risk rating 4	16,094		26,835		20,058		15,415		1,916		46,253		4,774		131,345
Risk rating 5	4,005		—		—		—		—		—		—		4,005
Risk rating 6	—		—		1,757		—		—		1,400		—		3,157
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	49,202		75,237		58,593		32,681		13,030		90,272		10,091		329,106
Total commercial real estate loans	$	951,855	$	1,753,474	$	909,263	$	1,126,626	$	848,664	$	1,921,962	$	505,185	$	8,017,029
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	118	$	37	$	155
Risk rating 2	—		—		—		—		—		115		—		115
Risk rating 3	228,300		254,988		183,584		122,093		105,793		361,623		105,987		1,362,368
Risk rating 4	25,964		41,184		66,127		12,130		18,418		71,178		70,261		305,262
Risk rating 5	2,734		180		—		3,066		501		1,557		186		8,224
Risk rating 6	—		2,180		2,413		3,825		2,414		17,814		3,450		32,096
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		1		—		1
Total residential 1-4 family	256,998		298,532		252,124		141,114		127,126		452,406		179,921		1,708,221

30

	June 30, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	3,583		18,192		17,855		14,667		16,076		55,525		39,631		165,529
Risk rating 4	8,034		29,526		121,156		23,503		12,113		15,609		270		210,211
Risk rating 5	—		—		—		—		3,183		7,984		—		11,167
Risk rating 6	—		—		—		747		—		1,823		—		2,570
Risk rating 7	—		—		—		—		—		156		—		156
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	11,617		47,718		139,011		38,917		31,372		81,097		39,901		389,633
Total real estate	$	1,220,470	$	2,099,724	$	1,300,398	$	1,306,657	$	1,007,162	$	2,455,465	$	725,007	$	10,114,883
Consumer
Risk rating 1	$	3,194	$	5,020	$	1,607	$	955	$	703	$	1,370	$	1,476	$	14,325
Risk rating 2	—		—		1		224		631		—		—		856
Risk rating 3	146,607		310,018		186,953		146,049		131,267		151,552		6,150		1,078,596
Risk rating 4	3,207		1,284		621		2,177		552		2,336		74		10,251
Risk rating 5	33		12		110		—		12		559		—		726
Risk rating 6	17		71		30		172		—		1,215		7		1,512
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		77		—		77
Total consumer	153,058		316,405		189,322		149,577		133,165		157,109		7,707		1,106,343
Commercial and industrial
Risk rating 1	$	920	$	32,090	$	6,644	$	304	$	29	$	21,677	$	7,979	$	69,643
Risk rating 2	170		307		81		197		—		254		546		1,555
Risk rating 3	176,716		166,123		89,398		79,402		48,010		95,750		282,994		938,393
Risk rating 4	26,642		231,306		49,175		123,869		80,950		57,810		494,944		1,064,696
Risk rating 5	283		6,156		28,092		361		7,239		9,480		806		52,417
Risk rating 6	18		577		12,237		4,462		24,553		11,165		6,122		59,134
Risk rating 7	—		—		—		—		1,634		299		—		1,933
Risk rating 8	—		—		—		—		—		—		—		—
Total commercial and industrial	204,749		436,559		185,627		208,595		162,415		196,435		793,391		2,187,771
Agricultural and other
Risk rating 1	$	136	$	727	$	114	$	—	$	—	$	5	$	746	$	1,728
Risk rating 2	73		123		—		3,467		34		968		1,795		6,460
Risk rating 3	107,154		41,975		32,179		6,170		10,553		48,565		123,477		370,073
Risk rating 4	8,981		18,330		3,635		13,824		2,101		11,582		75,742		134,195
Risk rating 5	—		8		203		—		—		1,311		—		1,522
Risk rating 6	—		57		194		16		—		631		—		898
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	116,344		61,220		36,325		23,477		12,688		63,062		201,760		514,876
Total	$	1,694,621	$	2,913,908	$	1,711,672	$	1,688,306	$	1,315,430	$	2,872,071	$	1,727,865	$	13,923,873

31

	December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	284,127		281,982		266,990		341,642		195,301		891,035		194,640		2,455,717
Risk rating 4	111,697		32,788		115,989		301,520		90,747		345,254		90,028		1,088,023
Risk rating 5	—		10,930		2,239		23,117		49,926		189,038		—		275,250
Risk rating 6	—		—		23,723		2,224		11,751		32,372		224		70,294
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	395,824		325,700		408,941		668,503		347,725		1,457,699		284,892		3,889,284
Construction/land development
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		231		—		231
Risk rating 3	301,719		183,715		108,491		23,574		13,760		41,860		149,433		822,552
Risk rating 4	226,230		217,267		448,899		33,617		45,679		38,122		7,297		1,017,111
Risk rating 5	—		—		388		—		—		1,174		176		1,738
Risk rating 6	—		134		825		3		—		7,456		—		8,418
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total construction/land development	527,949		401,116		558,603		57,194		59,439		88,843		156,906		1,850,050
Agricultural
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	21,480		27,931		7,768		6,564		5,103		21,689		7,026		97,561
Risk rating 4	4,305		964		365		970		655		22,143		2,065		31,467
Risk rating 5	—		166		—		—		—		—		—		166
Risk rating 6	—		44		—		—		—		1,436		—		1,480
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	25,785		29,105		8,133		7,534		5,758		45,268		9,091		130,674
Total commercial real estate loans	$	949,558	$	755,921	$	975,677	$	733,231	$	412,922	$	1,591,810	$	450,889	$	5,870,008
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	76	$	89	$	165
Risk rating 2	—		—		—		—		—		29		—		29
Risk rating 3	210,970		147,523		119,861		94,848		82,474		296,687		85,836		1,038,199
Risk rating 4	8,885		3,397		56,839		16,887		21,874		53,578		36,642		198,102
Risk rating 5	—		—		3,065		1,220		582		1,366		193		6,426
Risk rating 6	1,136		2,252		2,432		2,063		1,263		16,305		6,580		32,031
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		1		—		1
Total residential 1-4 family	220,991		153,172		182,197		115,018		106,193		368,042		129,340		1,274,953

32

	December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	11,898		5,211		34,492		17,375		9,430		43,804		3,583		125,793
Risk rating 4	3,755		44,294		30,060		3,412		2,981		18,805		33,723		137,030
Risk rating 5	—		—		—		7,591		8,105		—		—		15,696
Risk rating 6	—		—		—		—		890		1,428		—		2,318
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	15,653		49,505		64,552		28,378		21,406		64,037		37,306		280,837
Total real estate	$	1,186,202	$	958,598	$	1,222,426	$	876,627	$	540,521	$	2,023,889	$	617,535	$	7,425,798
Consumer
Risk rating 1	$	4,441	$	1,799	$	1,237	$	920	$	226	$	1,383	$	1,893	$	11,899
Risk rating 2	—		—		45		639		—		8		—		692
Risk rating 3	221,986		173,511		132,148		109,810		67,992		92,076		1,098		798,621
Risk rating 4	3,547		923		2,944		1,776		158		2,641		79		12,068
Risk rating 5	—		116		—		15		—		131		—		262
Risk rating 6	69		34		39		117		—		1,711		7		1,977
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total consumer	230,043		176,383		136,413		113,277		68,376		97,950		3,077		825,519
Commercial and industrial
Risk rating 1	$	99,579	$	12,752	$	350	$	118	$	102	$	21,436	$	9,851	$	144,188
Risk rating 2	175		16		—		—		66		276		168		701
Risk rating 3	125,071		59,056		77,130		67,944		34,733		42,905		145,247		552,086
Risk rating 4	244,927		35,350		89,558		91,840		23,616		34,566		88,750		608,607
Risk rating 5	6,185		609		480		8,258		5,712		2,851		582		24,677
Risk rating 6	492		15,377		5,913		24,941		5,477		2,233		342		54,775
Risk rating 7	—		—		—		1,696		—		—		—		1,696
Risk rating 8	—		—		—		—		—		16		1		17
Total commercial and industrial	476,429		123,160		173,431		194,797		69,706		104,283		244,941		1,386,747
Agricultural and other
Risk rating 1	$	5,042	$	—	$	40	$	—	$	—	$	110	$	552	$	5,744
Risk rating 2	—		—		3,467		—		—		909		983		5,359
Risk rating 3	54,534		44,030		5,158		7,092		2,009		46,570		8,750		168,143
Risk rating 4	1,544		218		154		1,590		1,226		1,224		10,842		16,798
Risk rating 5	—		—		—		—		—		1,297		—		1,297
Risk rating 6	53		—		23		13		33		562		—		684
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	61,173		44,248		8,842		8,695		3,268		50,672		21,127		198,025
Total	$	1,953,847	$	1,302,389	$	1,541,112	$	1,193,396	$	681,871	$	2,276,794	$	886,680	$	9,836,089

33

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company also evaluates credit quality based on the aging status of the loan, which was previously presented and by payment activity. The following tables present the amortized cost of performing and nonperforming loans as of June 30, 2022 and December 31, 2021.

	June 30, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	363,921	$	823,509	$	483,438	$	476,985	$	774,705	$	1,485,540	$	353,981	$	4,762,079
Non-performing	—		—		13,900		44,504		22,840		249,093		123		330,460
Total non-farm/non-residential	363,921		823,509		497,338		521,489		797,545		1,734,633		354,104		5,092,539
Construction/land development
Performing	$	538,732	$	854,677	$	353,332	$	571,712	$	37,933	$	96,712	$	140,990	$	2,594,088
Non-performing	—		51		—		744		156		345		—		1,296
Total construction/ land development	538,732		854,728		353,332		572,456		38,089		97,057		140,990		2,595,384
Agricultural
Performing	$	49,202	$	75,237	$	58,593	$	32,681	$	13,030	$	89,367	$	10,091	$	328,201
Non-performing	—		—		—		—		—		905		—		905
Total agricultural	49,202		75,237		58,593		32,681		13,030		90,272		10,091		329,106
Total commercial real estate loans	$	951,855	$	1,753,474	$	909,263	$	1,126,626	$	848,664	$	1,921,962	$	505,185	$	8,017,029
Residential real estate loans
Residential 1-4 family
Performing	$	256,998	$	297,261	$	249,716	$	137,945	$	125,699	$	442,616	$	177,272	$	1,687,507
Non-performing	—		1,271		2,408		3,169		1,427		9,790		2,649		20,714
Total residential 1-4 family	256,998		298,532		252,124		141,114		127,126		452,406		179,921		1,708,221
Multifamily residential
Performing	$	11,617	$	47,718	$	139,011	$	38,917	$	31,372	$	79,989	$	39,901	$	388,525
Non-performing	—		—		—		—		—		1,108		—		1,108
Total multifamily residential	11,617		47,718		139,011		38,917		31,372		81,097		39,901		389,633
Total real estate	$	1,220,470	$	2,099,724	$	1,300,398	$	1,306,657	$	1,007,162	$	2,455,465	$	725,007	$	10,114,883
Consumer
Performing	$	153,058	$	316,350	$	189,302	$	149,430	$	133,165	$	155,962	$	7,700	$	1,104,967
Non-performing	—		55		20		147		—		1,147		7		1,376
Total consumer	153,058		316,405		189,322		149,577		133,165		157,109		7,707		1,106,343
Commercial and industrial
Performing	$	204,749	$	435,803	$	182,667	$	204,643	$	153,210	$	192,144	$	787,229	$	2,160,445
Non-performing	—		756		2,960		3,952		9,205		4,291		6,162		27,326
Total commercial and industrial	204,749		436,559		185,627		208,595		162,415		196,435		793,391		2,187,771
Agricultural and other
Performing	$	116,344	$	61,220	$	36,122	$	23,461	$	12,688	$	61,852	$	201,274	$	512,961
Non-performing	—		—		203		16		—		1,210		486		1,915
Total agricultural and other	116,344		61,220		36,325		23,477		12,688		63,062		201,760		514,876
Total	$	1,694,621	$	2,913,908	$	1,711,672	$	1,688,306	$	1,315,430	$	2,872,071	$	1,727,865	$	13,923,873

34

	December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	395,824	$	315,447	$	394,061	$	648,351	$	298,086	$	1,268,731	$	284,865	$	3,605,365
Non-performing	—		10,253		14,880		20,152		49,639		188,968		27		283,919
Total non-farm/non-residential	395,824		325,700		408,941		668,503		347,725		1,457,699		284,892		3,889,284
Construction/land development
Performing	$	527,949	$	400,982	$	557,778	$	57,024	$	59,439	$	85,197	$	156,906	$	1,845,275
Non-performing	—		134		825		170		—		3,646		—		4,775
Total construction/land development	527,949		401,116		558,603		57,194		59,439		88,843		156,906		1,850,050
Agricultural
Performing	$	25,785	$	28,939	$	8,133	$	7,534	$	5,758	$	44,537	$	9,091	$	129,777
Non-performing	—		166		—		—		—		731		—		897
Total agricultural	25,785		29,105		8,133		7,534		5,758		45,268		9,091		130,674
Total commercial real estate loans	$	949,558	$	755,921	$	975,677	$	733,231	$	412,922	$	1,591,810	$	450,889	$	5,870,008
Residential real estate loans
Residential 1-4 family
Performing	$	220,380	$	151,459	$	180,113	$	113,845	$	105,129	$	360,700	$	123,552	$	1,255,178
Non-performing	611		1,713		2,084		1,173		1,064		7,342		5,788		19,775
Total residential 1-4 family	220,991		153,172		182,197		115,018		106,193		368,042		129,340		1,274,953
Multifamily residential
Performing	$	15,653	$	49,505	$	64,552	$	28,378	$	21,406	$	62,737	$	37,306	$	279,537
Non-performing	—		—		—		—		—		1,300		—		1,300
Total multifamily residential	15,653		49,505		64,552		28,378		21,406		64,037		37,306		280,837
Total real estate	$	1,186,202	$	958,598	$	1,222,426	$	876,627	$	540,521	$	2,023,889	$	617,535	$	7,425,798
Consumer
Performing	$	229,986	$	176,355	$	136,403	$	113,160	$	68,376	$	96,506	$	3,070	$	823,856
Non-performing	57		28		10		117		—		1,444		7		1,663
Total consumer	230,043		176,383		136,413		113,277		68,376		97,950		3,077		825,519
Commercial and industrial
Performing	$	476,424	$	122,999	$	168,984	$	185,569	$	66,928	$	103,391	$	244,259	$	1,368,554
Non-performing	5		161		4,447		9,228		2,778		892		682		18,193
Total commercial and industrial	476,429		123,160		173,431		194,797		69,706		104,283		244,941		1,386,747
Agricultural and other
Performing	$	61,173	$	44,248	$	8,819	$	8,682	$	3,235	$	49,725	$	21,127	$	197,009
Non-performing	—		—		23		13		33		947		—		1,016
Total agricultural and other	61,173		44,248		8,842		8,695		3,268		50,672		21,127		198,025
Total	$	1,953,847	$	1,302,389	$	1,541,112	$	1,193,396	$	681,871	$	2,276,794	$	886,680	$	9,836,089

The Company had approximately $13.8 million or 83 total revolving loans convert to term loans for the six months ended June 30, 2022 compared to $21.7 million or 140 total revolving loans convert to term loans for the six months ended June 30, 2021. These loans were considered immaterial for vintage disclosure inclusion.

35

The following is a presentation of troubled debt restructurings (“TDRs”) by class as of June 30, 2022 and December 31, 2021:

	June 30, 2022
	Number of Loans	Pre- Modification Outstanding Balance		Rate Modification		Term Modification		Rate & Term Modification		Post- Modification Outstanding Balance
	(Dollars in thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	11	$	6,085	$	3,404	$	608	$	82	$	4,094
Construction/land development	1	216		199		—		—		199
Agricultural	—	—		—		—		—		—
Residential real estate loans
Residential 1-4 family	14	2,166		660		112		299		1,071
Multifamily residential	1	1,130		952		—		—		952
Total real estate	27	9,597		5,215		720		381		6,316
Consumer	4	23		12		—		3		15
Commercial and industrial	10	2,099		152		41		74		267
Total	41	$	11,719	$	5,379	$	761	$	458	$	6,598

	December 31, 2021
	Number of Loans	Pre- Modification Outstanding Balance		Rate Modification		Term Modification		Rate & Term Modification		Post- Modification Outstanding Balance
	(Dollars in thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	12	$	6,119	$	3,581	$	623	$	85	$	4,289
Construction/land development	2	240		210		1		—		211
Agricultural	1	282		262		—		—		262
Residential real estate loans
Residential 1-4 family	15	2,328		844		117		332		1,293
Multifamily residential	1	1,130		1,144		—		—		1,144
Total real estate	31	10,099		6,041		741		417		7,199
Consumer	4	22		13		—		3		16
Commercial and industrial	9	2,353		172		65		74		311
Total	44	$	12,474	$	6,226	$	806	$	494	$	7,526

36

The following is a presentation of TDRs on non-accrual status as of June 30, 2022 and December 31, 2021 because they are not in compliance with the modified terms:

	June 30, 2022			December 31, 2021
	Number of Loans	Recorded Balance		Number of Loans	Recorded Balance
	(Dollars in thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	1	$	5	2	$	7
Construction/land development	1	199		1	210
Agricultural	—	—		1	262
Residential real estate loans
Residential 1-4 family	5	352		5	388
Total real estate	7	556		9	867
Consumer	3	3		3	3
Commercial and industrial	8	176		6	206
Total	18	$	735	18	$	1,076

The following is a presentation of total foreclosed assets as of June 30, 2022 and December 31, 2021:

	June 30, 2022		December 31, 2021
	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	49	$	536
Construction/land development	55		834
Residential real estate loans
Residential 1-4 family	269		260
Total foreclosed assets held for sale	$	373	$	1,630

The Company has purchased loans for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. As of June 30, 2022 and December 31, 2021, the balance of purchase credit deteriorated loans was approximately $152.3 million and $448,000, respectively. This balance, as of June 30, 2022, consisted of $151.8 million resulting from the acquisition of Happy and $432,000 from the acquisition of LH-Finance.

6. Goodwill and Core Deposits and Other Intangibles

Changes in the carrying amount and accumulated amortization of the Company’s goodwill and core deposits and other intangibles at June 30, 2022 and December 31, 2021, were as follows:

	June 30, 2022		December 31, 2021
	(In thousands)
Goodwill
Balance, beginning of period	$	973,025	$	973,025
Acquisition of Happy Bancshares	425,375		—
Balance, end of period	$	1,398,400	$	973,025

37

	June 30, 2022		December 31, 2021
	(In thousands)
Core Deposit and Other Intangibles
Balance, beginning of period	$	25,045	$	30,728
Acquisition of Happy Bancshares	42,263		—
Amortization expense	(3,898)		(2,842)
Balance, June 30	63,410		27,886
Amortization expense			(2,841)
Balance, end of year			$	25,045

The carrying basis and accumulated amortization of core deposits and other intangibles at June 30, 2022 and December 31, 2021 were:

	June 30, 2022		December 31, 2021
	(In thousands)
Gross carrying basis	$	128,888	$	86,625
Accumulated amortization	(65,478)		(61,580)
Net carrying amount	$	63,410	$	25,045

Core deposit and other intangible amortization expense was approximately $2.5 million and $1.4 million for the three months ended June 30, 2022 and 2021, respectively. Core deposit and other intangible amortization expense was approximately $3.9 million and $2.8 million for the six months ended June 30, 2022 and 2021, respectively. The Company’s estimated amortization expense of core deposits and other intangibles for each of the years 2022 through 2026 is approximately: 2022 – $8.9 million; 2023 – $9.7 million; 2024 – $8.5 million; 2025 – $8.1 million; 2026 – $7.8 million.

The carrying amount of the Company’s goodwill was $1.40 billion and $973.0 million at June 30, 2022 and December 31, 2021, respectively. Goodwill is tested annually for impairment during the fourth quarter or more often if events and circumstances indicate there may be an impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements.

7. Other Assets

Other assets consist primarily of equity securities without a readily determinable fair value and other miscellaneous assets. As of June 30, 2022 and December 31, 2021, other assets were $271.0 million and $177.0 million, respectively.

The Company has equity securities without readily determinable fair values such as stock holdings in the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“Federal Reserve”) which are outside the scope of ASC Topic 321, Investments – Equity Securities (“ASC Topic 321”). These equity securities without a readily determinable fair value were $112.1 million and $88.2 million at June 30, 2022 and December 31, 2021, and are accounted for at cost.

The Company has equity securities such as stock holdings in First National Bankers’ Bank and other miscellaneous holdings which are accounted for under ASC Topic 321. These equity securities without a readily determinable fair value were $70.3 million and $36.4 million at June 30, 2022 and December 31, 2021. There were no observable transactions during the period that would indicate a material change in fair value. Therefore, these investments were accounted for at cost, less impairment.

38

8. Deposits

The aggregate amount of time deposits with a minimum denomination of $250,000 was $353.2 million and $321.6 million at June 30, 2022 and December 31, 2021. The aggregate amount of time deposits with a minimum denomination of $100,000 was $688.2 million and $537.4 million at June 30, 2022 and December 31, 2021, respectively. Interest expense applicable to certificates in excess of $100,000 totaled $661,000 and $2.0 million for the three months ended June 30, 2022 and 2021. Interest expense applicable to certificates in excess of $100,000 totaled $1.4 million and $4.4 million for the six months ended June 30, 2022 and 2021. As of June 30, 2022 and December 31, 2021, brokered deposits were $626.9 million and $625.7 million, respectively.

Deposits totaling approximately $2.69 billion and $1.91 billion at June 30, 2022 and December 31, 2021, respectively, were public funds obtained primarily from state and political subdivisions in the United States.

9. Securities Sold Under Agreements to Repurchase

At June 30, 2022 and December 31, 2021, securities sold under agreements to repurchase totaled $118.6 million and $140.9 million, respectively. For the three-month periods ended June 30, 2022 and 2021, securities sold under agreements to repurchase daily weighted-average totaled $123.1 million and $157.6 million, respectively. For the six-month periods ended June 30, 2022 and 2021, securities sold under agreements to repurchase daily weighted-average totaled $130.2 million and $158.6 million, respectively.

The remaining contractual maturity of securities sold under agreements to repurchase in the consolidated balance sheets as of June 30, 2022 and December 31, 2021 is presented in the following tables:

	June 30, 2022
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	6,540	$	—	$	—	$	—	$	6,540
Mortgage-backed securities	3,300		—		—		—		3,300
State and political subdivisions	105,319		—		—		—		105,319
Other securities	3,414		—		—		—		3,414
Total borrowings	$	118,573	$	—	$	—	$	—	$	118,573

	December 31, 2021
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	8,433	$	—	$	—	$	—	$	8,433
Mortgage-backed securities	7,920		—		—		—		7,920
State and political subdivisions	122,173		—		—		—		122,173
Other securities	2,360		—		—		—		2,360
Total borrowings	$	140,886	$	—	$	—	$	—	$	140,886

39

10. FHLB and Other Borrowed Funds

The Company’s FHLB borrowed funds, which are secured by our loan portfolio, were $400.0 million at both June 30, 2022 and December 31, 2021. The Company had no other borrowed funds as of June 30, 2022 or December 31, 2021. At June 30, 2022 and December 31, 2021, all of the outstanding balances were classified as long-term advances. The FHLB advances mature in 2033 with fixed interest rates ranging from 1.76% to 2.26%. Expected maturities could differ from contractual maturities because FHLB may have the right to call or the Company may have the right to prepay certain obligations.

Additionally, the Company had $1.09 billion and $1.07 billion at June 30, 2022 and December 31, 2021, in letters of credit under a FHLB blanket borrowing line of credit, which are used to collateralize public deposits at June 30, 2022 and December 31, 2021, respectively.

The parent company took out a $20.0 million line of credit for general corporate purposes during 2015. The balance on this line of credit at June 30, 2022 and December 31, 2021 was zero.

11. Subordinated Debentures

Subordinated debentures at June 30, 2022 and December 31, 2021 consisted of subordinated debt securities and guaranteed payments on trust preferred securities with the following components:

	As of June 30, 2022		As of December 31, 2021
	(In thousands)
Trust preferred securities
Subordinated debentures, issued in 2004, due 2034, floating rate of 4.00% above the three-month LIBOR rate, reset quarterly, currently callable without penalty	$	2,165	$	—
Subordinated debentures, issued in 2003, due 2034, floating rate of 2.95% above the three-month LIBOR rate, reset quarterly, currently callable without penalty	10,310		—
Subordinated debentures, issued in 2005, due 2035, floating rate of 2.15% above the three-month LIBOR rate, reset quarterly, currently callable without penalty	5,155		4,501
Subordinated debentures, issued in 2006, due 2036, fixed rate of 6.75% during the first five years and at a floating rate of 1.85% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		3,093
Subordinated debentures, issued in 2004, due 2034, fixed rate of 6.00% during the first five years and at a floating rate of 2.00% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		15,464
Subordinated debentures, issued in 2005, due 2035, fixed rate of 5.84% during the first five years and at a floating rate of 1.45% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		25,774
Subordinated debentures, issued in 2004, due 2034, fixed rate of 4.29% during the first five years and at a floating rate of 2.50% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		16,495
Subordinated debentures, issued in 2006, due 2036, fixed rate of 7.38% during the first five years and at a floating rate of 1.62% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		5,942
Subordinated debt securities
Subordinated notes, net of issuance costs, issued in 2020, due 2030, fixed rate of 5.50% during the first five years and at a floating rate of 534.5 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2025 without penalty	144,063		—
Subordinated notes, net of issuance costs, issued in 2022, due 2032, fixed rate of 3.125% during the first five years and at a floating rate of 182 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2027 without penalty	296,762		—
Subordinated notes, net of issuance costs, issued in 2017, due 2027, fixed rate of 5.625% during the first five years and at a floating rate of 3.575% above the then three-month LIBOR rate, reset quarterly, thereafter, callable in 2022 without penalty	—		299,824
Total	$	458,455	$	371,093

40

Trust Preferred Securities. The Company holds trust preferred securities with a face amount of $17.6 million which are currently callable without penalty based on the terms of the specific agreements. The trust preferred securities are tax-advantaged issues that previously qualified for Tier 1 capital treatment subject to certain limitations. However, now that the Company has exceeded $15 billion in assets and has completed the acquisition of Happy Bancshares, the Tier 1 treatment of the Company’s outstanding trust preferred securities has been eliminated, and these securities are now treated as Tier 2 capital. Distributions on these securities are included in interest expense. Each of the trusts is a statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in the Company’s subordinated debentures, the sole asset of each trust. The trust preferred securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the subordinated debentures held by the trust. The Company wholly owns the common securities of each trust. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related subordinated debentures. The Company’s obligations under the subordinated securities and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each respective trust’s obligations under the trust securities issued by each respective trust. The Company has received approval from the Federal Reserve to redeem the trust preferred securities, and is in the process of redeeming all of its trust preferred securities.

On April 1, 2022, the Company acquired $23.2 million in trust preferred securities from Happy which were currently callable without penalty based on the terms of the specific agreements. During the quarter, $10.7 million of these trust preferred securities were paid off without penalty. As of June 30, 2022, the Company held a face amount of $12.5 million in trust preferred securities acquired from Happy.

During the second quarter of 2022, the Company chose to redeem an additional $68.1 million in trust preferred securities held prior to the acquisition of Happy. As of June 30, 2022, the Company's remaining balance of trust preferred securities which were held prior to the acquisition of Happy was $5.1 million.

Subordinated Debt Securities. On April 1, 2022, the Company acquired $140.0 million of subordinated notes from Happy. These notes have a maturity date of July 31, 2030 and carry a fixed rate of 5.500% for the first five years. Thereafter, the notes bear interest at 3-month Secured Overnight Funding Rate (SOFR) plus 5.345% resetting quarterly. Interest payments are due semi-annually and the notes include a right of prepayment without penalty on or after July 31, 2025.

On January 18, 2022, the Company completed an underwritten public offering of $300.0 million in aggregate principal amount of its 3.125% Fixed-to-Floating Rate Subordinated Notes due 2032 (the “2032 Notes”) for net proceeds, after underwriting discounts and issuance costs of approximately $296.4 million. The 2032 Notes are unsecured, subordinated debt obligations of the Company and will mature on January 30, 2032. From and including the date of issuance to, but excluding January 30, 2027 or the date of earlier redemption, the 2032 Notes will bear interest at an initial rate of 3.125% per annum, payable in arrears on January 30 and July 30 of each year. From and including January 30, 2027 to, but excluding the maturity date or earlier redemption, the 2032 Notes will bear interest at a floating rate equal to the Benchmark rate (which is expected to be Three-Month Term SOFR), each as defined in and subject to the provisions of the applicable supplemental indenture for the 2032 Notes, plus 182 basis points, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, commencing on April 30, 2027.

The Company may, beginning with the interest payment date of January 30, 2027, and on any interest payment date thereafter, redeem the 2032 Notes, in whole or in part, subject to prior approval of the Federal Reserve if then required, at a redemption price equal to 100% of the principal amount of the 2032 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. The Company may also redeem the 2032 Notes at any time, including prior to January 30, 2027, at the Company’s option, in whole but not in part, subject to prior approval of the Federal Reserve if then required, if certain events occur that could impact the Company’s ability to deduct interest payable on the 2032 Notes for U.S. federal income tax purposes or preclude the 2032 Notes from being recognized as Tier 2 capital for regulatory capital purposes, or if the Company is required to register as an investment company under the Investment Company Act of 1940, as amended. In each case, the redemption would be at a redemption price equal to 100% of the principal amount of the 2032 Notes plus any accrued and unpaid interest to, but excluding, the redemption date.

On April 3, 2017, the Company completed an underwritten public offering of $300.0 million in aggregate principal amount of its 5.625% Fixed-to-Floating Rate Subordinated Notes due 2027 (the “2027 Notes”) for net proceeds, after underwriting discounts and issuance costs, of approximately $297.0 million. The 2027 Notes are unsecured, subordinated debt obligations and mature on April 15, 2027. From and including the date of issuance to, but excluding April 15, 2022, the 2027 Notes bear interest at an initial rate of 5.625% per annum. From and including April 15, 2022 to, but excluding the maturity date or earlier redemption, the 2027 Notes bear interest at a floating rate equal to three-month LIBOR as calculated on each applicable date of determination plus a spread of 3.575%; provided, however, that in the event three-month LIBOR is less than zero, then three-month LIBOR shall be deemed to be zero.

41

The Company, beginning with the interest payment date of April 15, 2022, and on any interest payment date thereafter, was permitted to redeem the 2027 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2027 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. On April 15, 2022, the Company completed the payoff of the 2027 Notes in aggregate principal amount of $300.0 million. Each 2027 Note was redeemed pursuant to the terms of the Subordinated Indenture, as supplemented by the First Supplemental Indenture, each dated as of April 3, 2017, between the Company and U.S. Bank Trust Company, National Association, the Trustee for the 2027 Notes, at the redemption price of 100% of its principal amount, plus accrued and unpaid interest to, but excluding, the Redemption Date.

12. Income Taxes

The following is a summary of the components of the provision for income taxes for the three and six months ended June 30, 2022 and 2021:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands)
Current:
Federal	$	19,242	$	15,175	$	33,207	$	38,058
State	5,077		5,024		8,761		12,599
Total current	24,319		20,199		41,968		50,657
Deferred:
Federal	(16,636)		3,661		(14,752)		2,488
State	(4,389)		1,212		(3,893)		823
Total deferred	(21,025)		4,873		(18,645)		3,311
Income tax expense	$	3,294	$	25,072	$	23,323	$	53,968

The reconciliation between the statutory federal income tax rate and effective income tax rate is as follows for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Statutory federal income tax rate	21.00	%	21.00	%	21.00	%	21.00	%
Effect of non-taxable interest income	(8.30)		(1.03)		(2.53)		(0.97)
Stock compensation	0.90		0.16		0.58		0.25
State income taxes, net of federal benefit	(4.38)		4.18		2.56		4.22
Executive officer compensation & other	7.87		(0.24)		0.77		(0.48)
Effective income tax rate	17.09	%	24.07	%	22.38	%	24.02	%

42

The types of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:

	June 30, 2022		December 31, 2021
	(In thousands)
Deferred tax assets:
Allowance for credit losses	$	84,584	$	68,644
Deferred compensation	5,310		5,342
Stock compensation	6,211		5,044
Non-accrual interest income	1,914		694
Real estate owned	109		109
Unrealized loss on investment securities, available-for-sale	72,534		—
Loan discounts	8,550		4,169
Tax basis premium/discount on acquisitions	2,216		3,220
Investments	34,527		263
Deposits	207		—
Other	17,392		5,283
Gross deferred tax assets	233,554		92,768
Deferred tax liabilities:
Accelerated depreciation on premises and equipment	4,095		761
Unrealized gain on securities	—		4,220
Core deposit intangibles	15,360		5,736
FHLB dividends	2,782		2,820
Other	2,732		941
Gross deferred tax liabilities	24,969		14,478
Net deferred tax assets	$	208,585	$	78,290

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and the states of Alabama, Arizona, Arkansas, California, Florida, Georgia, Illinois, Kansas, Kentucky, Maryland, Mississippi, Missouri, New Hampshire, New Jersey, New York, New Mexico, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas and Wisconsin. The Company is no longer subject to U.S. federal and state tax examinations by tax authorities for years before 2018.

13. Common Stock, Compensation Plans and Other

Common Stock

The Company’s Restated Articles of Incorporation, as amended, authorize the issuance of up to 300,000,000 shares of common stock, par value $0.01 per share.

The Company also has the authority to issue up to 5,500,000 shares of preferred stock, par value $0.01 per share under the Company’s Restated Articles of Incorporation, as amended.

Stock Repurchases

On January 22, 2021, the Company’s Board of Directors authorized the repurchase of up to an additional 20,000,000 shares of its common stock under the previously approved stock repurchase program. During the first six months of 2022, the Company repurchased a total of 1,212,732 shares with a weighted-average stock price of $21.89 per share. Shares repurchased under the program as of June 30, 2022 since its inception total 18,874,067 shares. The remaining balance available for repurchase is 20,877,933 shares at June 30, 2022.

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Stock Compensation Plans

On January 21, 2022, the Company’s Board of Directors adopted, and on April 21, 2022, the Company's shareholders approved, the Home BancShares, Inc. 2022 Equity Incentive Plan (the “2022 Plan”). The 2022 Plan replaced the Company’s Amended and Restated 2006 Stock Option and Performance Incentive Plan (the “2006 Plan” and, together with the 2022 Plan, the “Plans”), which expired on February 27, 2022. The purpose of the Plans is to attract and retain highly qualified officers, directors, key employees, and other persons, and to motivate those persons to improve the Company’s business results. As of June 30, 2022, the maximum total number of shares of the Company’s common stock available for issuance under the 2022 Plan, subject to shareholder approval of the Plan, was 14,788,000 shares (representing 13,288,000 shares approved for issuance under the 2006 Plan plus 1,500,000 shares added upon adoption of the 2022 Plan). At June 30, 2022, the Company had 2,617,211 shares of common stock available for future grants under 2022 Plan, subject to shareholder approval of the 2022 Plan. As of June 30, 2022, a total of 5,761,527 shares of common stock were reserved for issuance pursuant to the Plans.

The intrinsic value of the stock options outstanding and stock options vested at June 30, 2022 was $5.7 million and $5.4 million, respectively. The intrinsic value of stock options exercised during the six months ended June 30, 2022 was approximately $259,000. Total unrecognized compensation cost, net of income tax benefit, related to non-vested stock option awards, which are expected to be recognized over the vesting periods, was approximately $5.5 million as of June 30, 2022.

The table below summarizes the stock option transactions under the 2022 Plan at June 30, 2022 and December 31, 2021 and changes during the three-month period and year then ended:

	For the Six Months Ended June 30, 2022			For the Year Ended December 31, 2021
	Shares (000)	Weighted- Average Exercisable Price		Shares (000)	Weighted- Average Exercisable Price
Outstanding, beginning of year	3,015	$	20.06	3,254	$	19.77
Granted	178	21.04		15	21.68
Forfeited/Expired	(29)	22.83		(57)	22.44
Exercised	(20)	10.63		(197)	14.78
Outstanding, end of period	3,144	20.14		3,015	20.06
Exercisable, end of period	1,813	$	18.46	1,543	$	17.46

Stock-based compensation expense for stock-based compensation awards granted is based on the grant-date fair value. For stock option awards, the fair value is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Accordingly, while management believes that the Black-Scholes option-pricing model provides a reasonable estimate of fair value, the model does not necessarily provide the best single measure of fair value for the Company's employee stock options. The weighted-average fair value of options granted during the six months ended June 30, 2022 was $5.17 per share. There were 178,000 options granted during the six months ended June 30, 2022. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model based on the weighted-average assumptions for expected dividend yield, expected stock price volatility, risk-free interest rate, and expected life of options granted.

The assumptions used in determining the fair value of the 2022 and 2021 stock option grants were as follows:

	For the Six Months Ended June 30, 2022		For the Year Ended December 31, 2021
Expected dividend yield	3.15	%	2.59	%
Expected stock price volatility	31.22	%	70.13	%
Risk-free interest rate	2.80	%	0.75	%
Expected life of options	6.5 years		6.5 years

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The following is a summary of currently outstanding and exercisable options at June 30, 2022:

Options Outstanding					Options Exercisable
Exercise Prices	Options Outstanding Shares (000)	Weighted- Average Remaining Contractual Life (in years)	Weighted- Average Exercise Price		Options Exercisable Shares (000)	Weighted- Average Exercise Price
$6.56 to $8.62	140	0.55	$	8.62	140	$	8.62
$9.54 to $14.71	140	2.05	13.23		140	13.23
$16.77 to $16.86	130	2.14	16.80		130	16.80
$17.12 to $17.36	92	2.72	17.13		92	17.13
$17.40 to $18.46	871	3.13	18.45		738	18.45
$18.50 to $20.16	41	6.78	19.05		23	19.05
$20.46 to $21.25	293	6.58	20.79		149	21.10
$21.31 to $22.22	132	6.68	22.18		82	22.21
$22.70 to $23.32	1,208	6.06	23.32		246	23.32
$23.51 to $25.96	99	5.81	25.39		73	25.85
	3,144				1,813

The table below summarized the activity for the Company’s restricted stock issued and outstanding at June 30, 2022 and December 31, 2021 and changes during the period and year then ended:

	As of June 30, 2022		As of December 31, 2021
	(In thousands)
Beginning of year	1,231		1,371
Issued	391		216
Vested	(177)		(320)
Forfeited	(31)		(36)
End of period	1,414		1,231
Amount of expense for six months and twelve months ended, respectively	$	3,664	$	7,112

Total unrecognized compensation cost, net of income tax benefit, related to non-vested restricted stock awards, which are expected to be recognized over the vesting periods, was approximately $19.2 million as of June 30, 2022.

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14. Non-Interest Expense

The table below shows the components of non-interest expense for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands)
Salaries and employee benefits	$	65,795	$	42,462	$	109,346	$	84,521
Occupancy and equipment	14,256		9,042		23,400		18,279
Data processing expense	10,094		5,893		17,133		11,763
Merger and acquisition expenses	48,731		—		49,594		—
Other operating expenses:
Advertising	2,117		1,194		3,383		2,240
Amortization of intangibles	2,477		1,421		3,898		2,842
Electronic banking expense	3,352		2,616		5,890		4,854
Directors’ fees	375		414		779		797
Due from bank service charges	396		273		666		522
FDIC and state assessment	2,390		1,108		4,058		2,471
Insurance	973		787		1,743		1,568
Legal and accounting	1,061		1,058		1,858		1,904
Other professional fees	2,254		1,796		3,863		3,409
Operating supplies	995		465		1,749		952
Postage	556		292		862		630
Telephone	384		365		721		711
Other expense	9,276		3,796		13,435		8,385
Total other operating expenses	26,606		15,585		42,905		31,285
Total non-interest expense	$	165,482	$	72,982	$	242,378	$	145,848

15. Leases

The Company leases land and office facilities under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2044 and do not include renewal options based on economic factors that would have implied that continuation of the lease was reasonably certain. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. The leases generally include real estate taxes and common area maintenance (“CAM”) charges in the rental payments. Short-term leases are leases having a term of twelve months or less. In accordance with ASU 2018-11, the Company does not separate nonlease components from the associated lease component of our operating leases. As a result, the Company accounts for these components as a single component under Topic 842 since (i) the timing and pattern of transfer of the nonlease components and the associated lease component are the same and (ii) the lease component, if accounted for separately, would be classified as an operating lease. The Company recognizes short term leases on a straight-line basis and does not record a related ROU asset and liability for such leases. In addition, equipment leases were determined to be immaterial and a related ROU asset and liability for such leases is not recorded.

As of June 30, 2022, the balances of the right-of-use asset and lease liability was $45.6 million and $48.7 million, respectively. As of December 31, 2021, the balances of the right-of-use asset and lease liability was $39.6 million and $42.4 million, respectively The right-of-use asset is included in bank premises and equipment, net, and the lease liability is included in accrued interest payable and other liabilities.

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The minimum rental commitments under these noncancelable operating leases are as follows (in thousands) as of June 30, 2022 and December 31, 2021:

	June 30, 2022		December 31, 2021
2022	$	4,547	$	7,714
2023	8,153		6,574
2024	7,296		6,001
2025	6,568		5,510
2026	6,308		5,389
Thereafter	30,335		24,999
Total future minimum lease payments	$	63,207	$	56,187
Discount effect of cash flows	(14,505)		(13,778)
Present value of net future minimum lease payments	$	48,702	$	42,409

Additional information (dollar amounts in thousands):

	For the Three Months Ended						Six Months Ended
Lease expense:	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Operating lease expense	$	2,116		$	1,981		$	3,939		$	3,990
Short-term lease expense	—			1			1			5
Variable lease expense	218			251			443			508
Total lease expense	$	2,334		$	2,233		$	4,383		$	4,503
Other information:
Cash paid for amounts included in the measurement of lease liabilities	$	2,154		$	1,974		$	3,983		$	3,968
Weighted-average remaining lease term (in years)	9.33			9.75			9.42			9.84
Weighted-average discount rate	3.38		%	3.53		%	3.39		%	3.53		%

The Company currently leases three properties from three related parties. Total rent expense from the leases was $36,000 or 1.56% of total lease expense and $73,000 or 1.66% of total lease expense for the three and six months ended June 30, 2022.

16. Significant Estimates and Concentrations of Credit Risks

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for credit losses and certain concentrations of credit risk are reflected in Note 5, while deposit concentrations are reflected in Note 8.

The Company’s primary market areas are in Arkansas, Florida, Texas, South Alabama and New York. The Company primarily grants loans to customers located within these markets unless the borrower has an established relationship with the Company.

The diversity of the Company’s economic base tends to provide a stable lending environment. Although the Company has a loan portfolio that is diversified in both industry and geographic area, a substantial portion of its debtors’ ability to honor their contracts is dependent upon real estate values, tourism demand and the economic conditions prevailing in its market areas.

Although the Company has a diversified loan portfolio, at June 30, 2022 and December 31, 2021, commercial real estate loans represented 57.6% and 59.7% of total loans receivable, respectively, and 229.2% and 212.2% of total stockholders’ equity at June 30, 2022 and December 31, 2021, respectively. Residential real estate loans represented 15.1% and 15.8% of total loans receivable and 60.0% and 56.3% of total stockholders’ equity at June 30, 2022 and December 31, 2021, respectively.

Approximately 78.0% of the Company’s total loans and 82.1% of the Company’s real estate loans as of June 30, 2022, are to borrowers whose collateral is located in Alabama, Arkansas, Florida, Texas and New York, the states in which the Company has its branch locations.

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As of June 30, 2022, the markets in which we operate have been experiencing significant economic uncertainty primarily related to inflationary concerns, continuing supply chain issues and the potential impacts of international unrest. However, excluding the impact of the acquisition of Happy Bancshares, the Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2022. In addition, excluding the impact of the acquisition of Happy Bancshares, the Company determined no additional provision for unfunded commitments was necessary as of June 30, 2022.

Any future volatility in the economy could cause the values of assets and liabilities recorded in the financial statements to change rapidly, resulting in material future adjustments in asset values, the allowance for credit losses and capital that could negatively impact the Company’s ability to meet regulatory capital requirements and maintain sufficient liquidity.

17. Commitments and Contingencies

In the ordinary course of business, the Company makes various commitments and incurs certain contingent liabilities to fulfill the financing needs of its customers. These commitments and contingent liabilities include lines of credit and commitments to extend credit and issue standby letters of credit. The Company applies the same credit policies and standards as they do in the lending process when making these commitments. The collateral obtained is based on the assessed creditworthiness of the borrower.

At June 30, 2022 and December 31, 2021, commitments to extend credit of $4.47 billion and $3.05 billion, respectively, were outstanding. A percentage of these balances are participated out to other banks; therefore, the Company can call on the participating banks to fund future draws. Since some of these commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

Outstanding standby letters of credit are contingent commitments issued by the Company, generally to guarantee the performance of a customer in third-party borrowing arrangements. The term of the guarantee is dependent upon the creditworthiness of the borrower, some of which are long-term. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments. The maximum amount of future payments the Company could be required to make under these guarantees at June 30, 2022 and December 31, 2021, was $164.9 million and $110.8 million, respectively.

The Company and/or its bank subsidiary have various unrelated legal proceedings, most of which involve loan foreclosure activity pending, which, in the aggregate, are not expected to have a material adverse effect on the financial position or results of operations or cash flows of the Company and its subsidiary.

18. Regulatory Matters

The Bank is subject to a legal limitation on dividends that can be paid to the parent company without prior approval of the applicable regulatory agencies. Arkansas bank regulators have specified that the maximum dividend limit state banks may pay to the parent company without prior approval is 75% of the current year earnings plus 75% of the retained net earnings of the preceding year. Since the Bank is also under supervision of the Federal Reserve, it is further limited if the total of all dividends declared in any calendar year by the Bank exceeds the Bank’s net profits to date for that year combined with its retained net profits for the preceding two years. During the first six months of 2022, the Company requested approximately $53.1 million in regular dividends from its banking subsidiary.

The Company’s banking subsidiary is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s regulators could require adjustments to regulatory capital not reflected in the consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total, common Tier 1 equity and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes that, as of June 30, 2022, the Company meets all capital adequacy requirements to which it is subject.

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On December 31, 2018, the federal banking agencies issued a joint final rule to revise their regulatory capital rules to permit bank holding companies and banks to phase-in, for regulatory capital purposes, the day-one impact of the new CECL accounting rule on retained earnings over a period of three years. As part of its response to the impact of COVID-19, on March 27, 2020, the federal banking regulatory agencies issued an interim final rule that provided the option to temporarily delay certain effects of CECL on regulatory capital for two years, followed by a three-year transition period. The interim final rule allows bank holding companies and banks to delay for two years 100% of the day-one impact of adopting CECL and 25% of the cumulative change in the reported allowance for credit losses since adopting CECL. The Company elected to adopt the interim final rule, which is reflected in the Company's risk-based capital ratios.

In July 2013, the Federal Reserve Board and the other federal bank regulatory agencies issued a final rule to revise their risk-based and leverage capital requirements and their method for calculating risk-weighted assets to make them consistent with the agreements that were reached by the Basel Committee on Banking Supervision in “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems” and certain provisions of the Dodd-Frank Act (“Basel III”). Basel III applies to all depository institutions, bank holding companies with total consolidated assets of $500 million or more, and savings and loan holding companies. Basel III became effective for the Company and its bank subsidiary on January 1, 2015. Basel III limits a banking organization’s capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” of 2.5% of common equity Tier 1 capital to risk-weighted assets, which is in addition to the amount necessary to meet its minimum risk-based capital requirements. The capital conservation buffer requirement began being phased in beginning January 1, 2016 at the 0.625% level and increased by 0.625% on each subsequent January 1, until it reached 2.5% on January 1, 2019 when the phase-in period ended, and the full capital conservation buffer requirement became effective.

Basel III permanently grandfathers trust preferred securities and other non-qualifying capital instruments that were issued and outstanding as of May 19, 2010 in the Tier 1 capital of bank holding companies with total consolidated assets of less than $15 billion as of December 31, 2009. The rule phases out of Tier 1 capital these non-qualifying capital instruments issued before May 19, 2010 by all other bank holding companies. However, now that the Company has exceeded $15 billion in assets and has completed the acquisition of Happy Bancshares, the Tier 1 treatment of the Company’s outstanding trust preferred securities has been eliminated, and these securities are now treated as Tier 2 capital.

Basel III also amended the prompt corrective action rules to incorporate a “common equity Tier 1 capital” requirement and to raise the capital requirements for certain capital categories. In order to be adequately capitalized for purposes of the prompt corrective action rules, a banking organization will be required to have at least a 4.5% “common equity Tier 1 risk-based capital” ratio, a 4% “Tier 1 leverage capital” ratio, a 6% “Tier 1 risk-based capital” ratio and an 8% “total risk-based capital” ratio.

The Federal Reserve Board’s risk-based capital guidelines include the definitions for (1) a well-capitalized institution, (2) an adequately-capitalized institution, and (3) an undercapitalized institution. Under Basel III, the criteria for a well-capitalized institution are now: a 6.5% “common equity Tier 1 risk-based capital” ratio, a 5% “Tier 1 leverage capital” ratio, an 8% “Tier 1 risk-based capital” ratio, and a 10% “total risk-based capital” ratio. As of June 30, 2022, the Bank met the capital standards for a well-capitalized institution. The Company’s “common equity Tier 1 risk-based capital” ratio, “Tier 1 leverage capital” ratio, “Tier 1 risk-based capital” ratio, and “total risk-based capital” ratio were 12.78%, 9.77%, 12.88%, and 16.61%, respectively, as of June 30, 2022.

19. Additional Cash Flow Information

In connection with the Happy acquisition, accounted for under ASC Topic 805, the Company acquired approximately $6.68 billion in assets, including $858.9 million in cash and cash equivalents, assumed $6.15 billion in liabilities, issued approximately 42.4 million shares of its common stock valued at approximately $958.8 million as of April 1, 2022. In addition, the holders of certain Happy stock-based awards received approximately $3.7 million in cash in cancellation of such awards, for a total transaction value of approximately $962.5 million.

The following is a summary of the Company’s additional cash flow information during the six-month periods ended:

	June 30,
	2022		2021
	(In thousands)
Interest paid	$	27,605	$	28,428
Income taxes paid	38,553		58,685
Assets acquired by foreclosure	9		1,951

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20. Financial Instruments

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is a hierarchy of three levels of inputs that may be used to measure fair values:

Level 1	Quoted prices in active markets for identical assets or liabilities
Level 2	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Transfers of financial instruments between levels within the fair value hierarchy are recognized on the date management determines that the underlying circumstances or assumptions have changed.

Financial Assets and Liabilities Measured on a Recurring Basis

Available-for-sale securities and marketable equity securities are the only material instruments valued on a recurring basis which are held by the Company at fair value. Primarily all of the Company's securities are considered to be Level 2 securities, with the exception of the marketable equity securities, which are considered to be Level 1 securities. The Level 2 securities consist primarily of U.S. government-sponsored enterprises, mortgage-backed securities plus state and political subdivisions. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. As of June 30, 2022 and December 31, 2021, Level 3 securities were immaterial. In addition, there were no material transfers between hierarchy levels during 2022 and 2021. See Note 3 to the Condensed Notes to Consolidated Financial Statements for additional detail related to investment securities.

The Company reviews the prices supplied by the independent pricing service, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. In general, the Company does not purchase investment portfolio securities with complicated structures. Pricing for the Company’s investment securities is fairly generic and is easily obtained. The Company uses a third-party comparison pricing vendor in order to reflect consistency in the fair values of the investment securities sampled by the Company each quarter.

Financial Assets and Liabilities Measured on a Nonrecurring Basis

Held-to-maturity investment securities and impaired loans that are collateral dependent are the only material financial assets valued on a non-recurring basis which are held by the Company at fair value. The held-to-maturity investment securities consist primarily of state and political subdivisions plus U.S. Treasury securities. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Loan impairment is reported when full payment under the loan terms is not expected. Impaired loans are carried at the net realizable value of the collateral if the loan is collateral dependent. A portion of the allowance for credit losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for credit losses to require an increase, such increase is reported as a component of the provision for credit losses. The fair value of loans with specific allocated losses was $323.1 million and $280.0 million as of June 30, 2022 and December 31, 2021, respectively. This valuation is considered Level 3, consisting of appraisals of underlying collateral. The Company reversed approximately $77,000 and $126,000 of accrued interest receivable when impaired loans were put on non-accrual status during the three months ended June 30, 2022 and 2021, respectively. The Company reversed approximately $149,000 and $184,000 of accrued interest receivable when impaired loans were put on non-accrual status during the six months ended June 30, 2022 and 2021, respectively.

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Nonfinancial Assets and Liabilities Measured on a Nonrecurring Basis

Foreclosed assets held for sale are the only material non-financial assets valued on a non-recurring basis which are held by the Company at fair value, less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Company’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for credit losses. Additionally, valuations are periodically performed by management and any subsequent reduction in value is recognized by a charge to income. The fair value of foreclosed assets held for sale is estimated using Level 3 inputs based on appraisals of underlying collateral. As of June 30, 2022 and December 31, 2021, the fair value of foreclosed assets held for sale, less estimated costs to sell, was $373,000 and $1.6 million, respectively.

No foreclosed assets held for sale were remeasured during the six months ended June 30, 2022. Regulatory guidelines require the Company to reevaluate the fair value of foreclosed assets held for sale on at least an annual basis. The Company’s policy is to comply with the regulatory guidelines.

The significant unobservable (Level 3) inputs used in the fair value measurement of collateral for collateral-dependent impaired loans and foreclosed assets primarily relate to customized discounting criteria applied to the customer’s reported amount of collateral. The amount of the collateral discount depends upon the condition and marketability of the underlying collateral. As the Company’s primary objective in the event of default would be to monetize the collateral to settle the outstanding balance of the loan, less marketable collateral would receive a larger discount. During the reported periods, collateral discounts ranged from 10% to 60% for commercial and residential real estate collateral.

Fair Values of Financial Instruments

The following table presents the estimated fair values of the Company’s financial instruments. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

	June 30, 2022
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	2,816,376	$	2,816,376	1
Investment securities - available for sale	3,791,509		3,791,509		2
Investment securities - held-to-maturity (U.S. Treasuries)	277,688		276,029		1
Investment securities - held-to-maturity (state and political subdivisions)	1,089,093		997,251		2
Loans receivable, net of impaired loans and allowance	13,302,682		13,695,308		3
Accrued interest receivable	80,274		80,274		1
FHLB, FRB & FNBB Bank stock; other equity investments	182,399		182,399		3
Marketable equity securities	33,631		33,631		1
Financial liabilities:
Deposits:
Demand and non-interest bearing	$	6,036,583	$	6,036,583	1
Savings and interest-bearing transaction accounts	12,424,192		12,424,192		1
Time deposits	1,119,297		1,096,797		3
Securities sold under agreements to repurchase	118,573		118,573		1
FHLB and other borrowed funds	400,000		400,025		2
Accrued interest payable	9,203		9,203		1
Subordinated debentures	458,455		430,470		3

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	December 31, 2021
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	3,650,315	$	3,650,315	1
Investment securities - available for sale	3,119,807		3,119,807		2
Loans receivable, net of impaired loans and allowance	9,319,421		9,503,261		3
Accrued interest receivable	46,736		46,736		1
FHLB, FRB & FNBB Bank stock; other equity investments	124,638		124,638		3
Marketable equity securities	17,110		17,110		1
Financial liabilities:
Deposits:
Demand and non-interest bearing	$	4,127,878	$	4,127,878	1
Savings and interest-bearing transaction accounts	9,251,805		9,251,805		1
Time deposits	880,887		901,280		3
Securities sold under agreements to repurchase	140,886		140,886		1
FHLB and other borrowed funds	400,000		401,362		2
Accrued interest payable	4,798		4,798		1
Subordinated debentures	371,093		374,894		3

21. Recent Accounting Pronouncements

In December 31, 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in the update simplify the accounting for income taxes by removing the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items and the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in the update also simplify the accounting for income taxes by requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction, specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; however, an entity may elect to do so on an entity-by-entity basis for a legal entity that is both not subject to tax and disregarded by the taxing authority. The amendments require that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company adopted the guidance effective January 1, 2021, and its adoption did not have a significant impact on our financial position or financial statement disclosures.

In March 2020, the FASB issued ASU 2020-04,“Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022.

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In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope.” The amendments in the update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, certain provisions in Topic 848, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Amendments in the update to the expedients and exceptions in Topic 848 capture the incremental consequences of the scope clarification and tailor the existing guidance to derivative instruments affected by the discounting transition. The amendments in this Update do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022.

In March 2022, the FASB issued ASU 2022-02, "Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The amendments require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with Subtopic 326-20, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. ASU 2022-02 is effective for entities that have adopted ASU No. 2016-13 for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. These amendments should be applied prospectively. However, for the transition method related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Early adoption is permitted if an entity has adopted ASU 2016-13. If an entity elects to early adopt ASU 2022-02 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company is currently evaluating the potential impacts related to the adoption of the ASU.

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Report of Independent Registered Public Accounting Firm

Audit Committee, Board of Directors and Stockholders

Home BancShares, Inc.

Conway, Arkansas

Results of Review of Interim Consolidated Financial Statements

We have reviewed the condensed consolidated balance sheet of Home BancShares, Inc. and subsidiaries (the “Company”) as of June 30, 2022, and the related condensed consolidated statements of income, comprehensive (loss) income and stockholders’ equity for the three-month and six-month periods ended June 30, 2022 and 2021 and cash flows for the six month periods ended June 30, 2022 and 2021, and the related notes (collectively referred to as the “interim financial information” or “statements”). Based on our reviews, we are not aware of any material modifications that should be made to the condensed financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheet of the Company and subsidiaries as of December 31, 2021, and the related consolidated statements of income, comprehensive income, stockholders’ equity and cash flows for the year then ended (not presented herein), and in our report dated February 24, 2022, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2021, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ FORVIS, LLP

(Formerly BKD,LLP)

Little Rock, Arkansas

August 9, 2022

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Item 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with our Form 10-K, filed with the Securities and Exchange Commission on February 24, 2022, which includes the audited financial statements for the year ended December 31, 2021. Unless the context requires otherwise, the terms “Company,” “us,” “we,” and “our” refer to Home BancShares, Inc. on a consolidated basis.

General

We are a bank holding company headquartered in Conway, Arkansas, offering a broad array of financial services through our wholly-owned bank subsidiary, Centennial Bank (sometimes referred to as “Centennial” or the “Bank”). As of June 30, 2022, we had, on a consolidated basis, total assets of $24.25 billion, loans receivable, net of allowance for credit losses of $13.63 billion, total deposits of $19.58 billion, and stockholders’ equity of $3.50 billion.

We generate most of our revenue from interest on loans and investments, service charges, and mortgage banking income. Deposits and Federal Home Loan Bank (“FHLB”) and other borrowed funds are our primary source of funding. Our largest expenses are interest on our funding sources, salaries and related employee benefits and occupancy and equipment. We measure our performance by calculating our return on average common equity, return on average assets and net interest margin. We also measure our performance by our efficiency ratio, which is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income. The efficiency ratio, as adjusted, is a non-GAAP measure and is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income excluding adjustments such as merger and acquisition expenses and/or certain gains, losses and other non-interest income and expenses.

Table 1: Key Financial Measures

	As of or for the Three Months Ended June 30,				As of or for the Six Months Ended June 30,
	2022		2021		2022		2021
	(Dollars in thousands, except per share data)
Total assets	$	24,253,168	$	17,627,192	$	24,253,168	$	17,627,192
Loans receivable	13,923,873		10,199,175		13,923,873		10,199,175
Allowance for credit losses	(294,267)		(240,451)		(294,267)		(240,451)
Total deposits	19,580,072		13,891,341		19,580,072		13,891,341
Total stockholders’ equity	3,498,565		2,696,189		3,498,565		2,696,189
Net income	15,978		79,070		80,870		170,672
Basic earnings per share	0.08		0.48		0.44		1.03
Diluted earnings per share	0.08		0.48		0.44		1.03
Book value per share	17.04		16.39		17.04		16.39
Tangible book value per share (non-GAAP)(1)	9.92		10.31		9.92		10.31
Annualized net interest margin - FTE	3.64%		3.61%		3.46%		3.81%
Efficiency ratio	66.31		41.09		58.26		38.72
Efficiency ratio, as adjusted (non-GAAP)(2)	46.02		42.07		46.53		41.36
Return on average assets	0.26		1.81		0.75		2.01
Return on average common equity	1.78		11.92		5.14		13.02

(1)See Table 19 for the non-GAAP tabular reconciliation.

(2)See Table 23 for the non-GAAP tabular reconciliation.

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Results of Operations for the Three Months Ended June 30, 2022 and 2021

Our net income decreased $63.1 million, or 79.8%, to $16.0 million for the three-month period ended June 30, 2022, from $79.1 million for the same period in 2021. On a diluted earnings per share basis, our earnings were $0.08 per share for the three-month period ended June 30, 2022 compared to $0.48 per share for the three-month period ended June 30, 2021. During the second quarter of 2022, we completed the previously announced acquisition of Happy Bancshares, Inc. ("Happy"). As a result of the acquisition of Happy, which we completed on April 1, 2022, we incurred $48.7 million in merger expenses and recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count," an $11.4 million provision for credit losses on acquired unfunded commitments, a $2.0 million provision for credit losses on acquired held-to-maturity investment securities. The summation of these items reduced earnings by $107.3 million and earnings per share by $0.39 per share for the three-month period ended June 30, 2022. The markets in which we operate have been experiencing significant economic uncertainty primarily related to inflationary concerns, continuing supply chain issues and the potential impacts of international unrest. However, excluding the impact of the acquisition of Happy, the Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2022. In addition, excluding the impact of the acquisition of Happy, the Company determined no additional provision for unfunded commitments was necessary as of June 30, 2022. During the three months ended June 30, 2022, the Company recorded $1.4 million in special dividend from equity investments, $2.4 million in recoveries on historic losses, $1.8 million loss for the decrease in the fair value of marketable securities and $2.1 million in trust preferred securities ("TRUPS") redemption fees.

Total interest income increased by $62.5 million, or 40.5%, and non-interest income increased by $13.5 million, or 43.3%. This was more than offset by a $5.0 million, or 38.0%, increase in total interest expense and a $92.5 million, or 126.7%, increase in non-interest expense. The increase in interest income was due to a $40.1 million, or 28.3%, increase in loan interest income, a $16.6 million, or 137.1%, increase in investment income and a $5.9 million, or 828.6%, increase in interest income on deposits at other banks. The increase in non-interest income was primarily due to a $5.0 million, or 97.1%, increase in service charges on deposit accounts, a $4.6 million, or 152.6%, increase in other income, a $3.9 million, or 873.0%, increase in trust fees, a $2.9 million, or 29.8%, increase in other services charges and fees and $1.3 million, or 49.1%, increase in dividends from FHLB, FRB, FNBB and other which was partially offset by a $3.1 million, or 244.1%, decrease in the fair value adjustment for marketable securities resulting from a $1.8 million loss for the decrease in the fair value of marketable securities, and a $1.1 million, or 100.0%, decrease in gain on sale of SBA loans. Included within other income was $2.4 million in recoveries on historic losses, and included within dividends from FHLB, FRB, FNBB and other was $1.4 million in special dividends. The increase in interest expense was primarily due to a $4.3 million, or 66.8%, increase in interest on deposits and a $649,000, or 13.5%, increase in interest on subordinated debentures as a result of the acquisition of $140.0 million of subordinated debt and $23.2 million in trust preferred securities from Happy during the quarter. The increase in non-interest expense was due to $48.7 million in merger and acquisition expenses, a $23.3 million, or 55.0%, increase in salaries and employee benefits, an $11.0 million, or 70.7%, increase in other operating expenses, a $5.2 million, or 57.7%, increase in occupancy and equipment and a $4.2 million, or 71.3%, increase in data processing expense. Included within other operating expense was $2.1 million in TRUPS redemption fees. Income tax expense decreased by $21.8 million, or 86.9%, during the quarter due to a decrease in net income. These fluctuations are primarily due to the acquisition of Happy during the quarter and the rising rate environment.

Our net interest margin increased from 3.61% for the three-month period ended June 30, 2021 to 3.64% for the three-month period ended June 30, 2022. The yield on interest earning assets was 3.97% and 3.94% for the three months ended June 30, 2022 and 2021, respectively, as average interest earning assets increased from $15.89 billion to $22.18 billion. The increase in average earning assets is primarily due to a $3.30 billion increase in average loans receivable, a $2.31 billion increase in average investment securities, and $675.6 million increase in average interest-bearing balances due from banks due to the acquisition of Happy during the quarter. For the three months ended June 30, 2022 and 2021, we recognized $5.2 million and $5.8 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by one basis point. We recognized $1.4 million in event interest income for the three months ended June 30, 2022 compared to $942,000 for the three months ended June 30, 2021. This increased the net interest margin by one basis point.

Our efficiency ratio was 66.31% for the three months ended June 30, 2022, compared to 41.09% for the same period in 2021. For the second quarter of 2022, our efficiency ratio, as adjusted (non-GAAP), was 46.02%, compared to 42.07% reported for the second quarter of 2021. (See Table 23 for the non-GAAP tabular reconciliation).

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Our annualized return on average assets was 0.26% for the three months ended June 30, 2022, compared to 1.81% for the same period in 2021. Our annualized return on average assets, as adjusted (non-GAAP), was 1.57% for the three months ended June 30, 2022, compared to 1.75% for the same period in 2021. (See Table 20 for the non-GAAP tabular reconciliation). Our annualized return on average common equity was 1.78% and 11.92% for the three months ended June 30, 2022, and 2021, respectively. Our annualized return on average common equity, as adjusted (non-GAAP), was 10.83% for the three months ended June 30, 2022 and 11.54% for the same period in 2021. (See Table 21 for the non-GAAP tabular reconciliation).

Results of Operations for the Six Months Ended June 30, 2022 and 2021

Our net income decreased $89.8 million, or 52.6%, to $80.9 million for the six-month period ended June 30, 2022, from $170.7 million for the same period in 2021. On a diluted earnings per share basis, our earnings were $0.44 per share for the six-month period ended June 30, 2022 compared to $1.03 per share for the six-month period ended June 30, 2021. As a result of the acquisition of Happy, which we completed on April 1, 2022, we incurred $49.6 million in merger expenses and recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count," an $11.4 million provision for credit losses on acquired unfunded commitments, a $2.0 million provision for credit losses on acquired held-to-maturity investment securities. The summation of these items reduced earnings by $108.2 million and earnings per share by $0.44 per share for the six-month period ended June 30, 2022. The markets in which we operate have been experiencing significant economic uncertainty primarily related to inflationary concerns, continuing supply chain issues and the potential impacts of international unrest. However, excluding the impact of the acquisition of Happy, the Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2022. In addition, excluding the impact of the acquisition of Happy, the Company determined no additional provision for unfunded commitments was necessary as of June 30, 2022. During the six months ended June 30, 2022, the Company recorded a $324,000 adjustment for the increase in fair value of marketable securities, $1.4 million special dividend from equity investments, $2.1 million in TRUPS redemption fees and a $5.6 million recovery on historic losses.

Total interest income increased by $44.8 million, or 14.1%. This was more than offset by a $1.1 million, or 1.5%, decrease in non-interest income, a $4.2 million, or 15.2%, increase in interest expense and a $96.5 million, or 66.2%, increase in non-interest expense. The increase in interest income was due to an $18.6 million, or 6.4%, increase in loan interest income, a $19.0 million, or 81.3%, increase in investment income and a $7.1 million, or 637.5%, increase in interest income on deposits at other banks. The decrease in non-interest income was primarily due to a $6.7 million, or 95.4%, decrease in income for the fair value adjustment for marketable securities resulting from a $324,000 increase in the fair value of marketable securities for the six months ended June 30, 2022 compared to a $7.0 million increase for the six months ended June 30, 2021, a $6.6 million, or 58.7%, decrease in dividends from FHLB, FRB, FNBB and other, a $4.5 million, or 31.0%, decrease in mortgage lending income, which was partially offset by a $6.1 million, or 60.3%, increase in service charges on deposit accounts, a $4.6 million, or 41.3%, increase in other income, a $3.9 million, or 406.6%, increase in trust fees and a $3.0 million, or 17.4%, increase in other service charges and fees. Included within other income was $5.6 million recovery on historic losses, and included within dividends from FHLB, FRB, FNBB and other was $1.4 million in special dividends. The increase in interest expense was primarily due to a $2.7 million, or 28.5%, increase in interest on subordinated debentures as a result of the acquisition of $140.0 million of subordinated debt and $23.2 million in trust preferred securities from Happy during the second quarter, and a $1.5 million, or 10.5%, increase in interest on deposits. The increase in non-interest expense was due to $49.6 million in merger and acquisition expenses, a $24.8 million, or 29.4%, increase in salaries and employee benefits, an $11.6 million, or 37.1%, increase in other operating expenses, a $5.4 million, or 45.7%, increase in data processing expense and a $5.1 million, or 28.0% increase in occupancy and equipment. Included within other operating expense was $2.1 million in TRUPS redemption fees. Income tax expense decreased by $30.6 million, or 56.8%, during the quarter due to a decrease in net income. These fluctuations are primarily due to the acquisition of Happy during the second quarter of 2022 and the rising rate environment.

Our net interest margin decreased from 3.81% for the six-month period ended June 30, 2021 to 3.46% for the six-month period ended June 30, 2022. The yield on interest earning assets was 3.79% and 4.17% for the six-month period ended June 30, 2022 and 2021, respectively, as average interest earning assets increased from $15.51 billion to $19.49 billion. The increase in average earning assets is primarily the result of a $1.59 billion increase in average investment securities, a $1.28 billion increase in average interest-bearing balances due from banks and a $1.12 billion increase in average loans receivable. For the six months ended June 30, 2022 and 2021, we recognized $8.3 million and $11.3 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by 3 basis points. The Company experienced an $18.8 million reduction in interest income from PPP loans due to the forgiveness of the PPP loans and the acceleration of the deferred fees for the loans that were forgiven. This was dilutive to the net interest margin by approximately 9 basis points.

Our efficiency ratio was 58.26% for the six-month period ended June 30, 2022, compared to 38.72% for the same period in 2021. For the first six months of 2022, our efficiency ratio, as adjusted (non-GAAP), was 46.53%, compared to 41.36% reported for the first six months of 2021. (See Table 23 for the non-GAAP tabular reconciliation).

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Our annualized return on average assets was 0.75% for the six-month period ended June 30, 2022, compared to 2.01% for the same period in 2021. Our annualized return on average assets, as adjusted (non-GAAP), was 1.48% for the six months ended June 30, 2022, compared to 1.81% for the same period in 2021. (See Table 20 for the non-GAAP tabular reconciliation). Our annualized return on average common equity was 5.14% and 13.02% for the six-month period ended June 30, 2022, and 2021, respectively. Our annualized return on average common equity, as adjusted (non-GAAP), was 10.08% for the six months ended June 30, 2022 and 11.74% for the same period in 2021. (See Table 21 for the non-GAAP tabular reconciliation).

Financial Condition as of and for the Period Ended June 30, 2022 and December 31, 2021

Our total assets as of June 30, 2022 increased $6.20 billion to $24.25 billion from the $18.05 billion reported as of December 31, 2021. The increase in total assets is primarily due to the acquisition of $6.68 billion in total assets, net of purchase accounting adjustments, from Happy during the second quarter of 2022. Cash and cash equivalents decreased $833.9 million, for the six months ended June 30, 2022. Our loan portfolio balance increased to $13.92 billion as of June 30, 2022 from $9.84 billion at December 31, 2021. The increase in loans was primarily due to the acquisition of $3.65 billion in loans, net of purchase accounting adjustments, from Happy in the second quarter of 2022 and $242.2 million in marine loans from LendingClub Bank during the first quarter of 2022, as well as $192.9 million in organic loan growth. Total deposits increased $5.32 billion to $19.58 billion as of June 30, 2022 from $14.26 billion as of December 31, 2021. The increase in deposits was primarily due to the acquisition of $5.86 billion in deposits, net of purchase accounting adjustments, from Happy in the second quarter of 2022. Stockholders’ equity increased $732.8 million to $3.50 billion as of June 30, 2022, compared to $2.77 billion as of December 31, 2021. The $732.8 million increase in stockholders’ equity is primarily associated with the $961.3 million in common stock issued to Happy shareholders for the acquisition of Happy on April 1, 2022 and the $80.9 million in net income for the six months ended June 30, 2022, partially offset by the $226.4 million in other comprehensive loss, the $61.0 million of shareholder dividends paid and stock repurchases of $26.6 million in 2022.

Our non-performing loans were $60.6 million, or 0.44% of total loans as of June 30, 2022, compared to $50.2 million, or 0.51% of total loans as of December 31, 2021. The allowance for credit losses as a percentage of non-performing loans increased to 485.57% as of June 30, 2022, from 471.61% as of December 31, 2021. Non-performing loans from our Arkansas franchise were $15.0 million at June 30, 2022 compared to $13.9 million as of December 31, 2021. Non-performing loans from our Florida franchise were $33.3 million at June 30, 2022 compared to $26.8 million as of December 31, 2021. Non-performing loans from our Texas franchise were $5.5 million at June 30, 2022 compared to zero as of December 31, 2021. Non-performing loans from our Alabama franchise were $813,000 at June 30, 2022 compared to $470,000 as of December 31, 2021. Non-performing loans from our Shore Premier Finance ("SPF") franchise were $1.3 million at June 30, 2022 compared to $1.5 million as of December 31, 2021. Non-performing loans from our Centennial Commercial Finance Group (“CFG”) franchise were $4.7 million at June 30, 2022 compared to $7.5 million as of December 31, 2021.

As of June 30, 2022, our non-performing assets increased to $61.1 million, or 0.25% of total assets, from $51.8 million, or 0.29% of total assets, as of December 31, 2021. Non-performing assets from our Arkansas franchise were $15.0 million at June 30, 2022 compared to $14.4 million as of December 31, 2021. Non-performing assets from our Florida franchise were $33.6 million at June 30, 2022 compared to $27.9 million as of December 31, 2021. Non-performing assets from our Texas franchise were $5.7 million at June 30, 2022 compared to zero as of December 31, 2021. Non-performing assets from our Alabama franchise were $813,000 at June 30, 2022 compared to $470,000 as of December 31, 2021. Non-performing assets from our SPF franchise were $1.3 million at June 30, 2022 compared to $1.5 million as of December 31, 2021. Non-performing assets from our CFG franchise were $4.7 million at June 30, 2022 compared to $7.5 million as of December 31, 2021.

The $4.7 million balance of non-accrual loans for our Centennial CFG market consists of one loan that is assessed for credit risk by the Federal Reserve under the Shared National Credit Program. The decision to place this loan on non-accrual status was made by the Federal Reserve and not the Company. The loan that makes up the total balance is still current on both principal and interest. However, all interest payments are currently being applied to the principal balance. Because the Federal Reserve required us to place this loan on non-accrual status, we have reversed any interest that had accrued subsequent to the non-accrual date designated by the Federal Reserve.

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Critical Accounting Policies and Estimates

Overview. We prepare our consolidated financial statements based on the selection of certain accounting policies, generally accepted accounting principles and customary practices in the banking industry. These policies, in certain areas, require us to make significant estimates and assumptions. Our accounting policies are described in detail in the notes to our consolidated financial statements included as part of this document.

We consider a policy critical if (i) the accounting estimate requires assumptions about matters that are highly uncertain at the time of the accounting estimate; and (ii) different estimates that could reasonably have been used in the current period, or changes in the accounting estimate that are reasonably likely to occur from period to period, would have a material impact on our financial statements. Using these criteria, we believe that the accounting policies most critical to us are those associated with our lending practices, including revenue recognition and the accounting for the allowance for credit losses, foreclosed assets, investments, intangible assets, income taxes and stock options.

Revenue Recognition. Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as our loans, letters of credit and investment securities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC Topic 606, which are presented in our income statements as components of non-interest income are as follows:

•Service charges on deposit accounts – These represent general service fees for monthly account maintenance and activity or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied.

•Other service charges and fees – These represent credit card interchange fees and Centennial CFG loan fees. The interchange fees are recorded in the period the performance obligation is satisfied which is generally the cash basis based on agreed upon contracts. Centennial CFG loan fees are based on loan or other negotiated agreements with customers and are accounted for under ASC Topic 310. Interchange fees were $6.5 million, $10.5 million, $4.3 million and $8.1 million for the three and six months ended June 30, 2022 and 2021, respectively. Centennial CFG loan fees were $3.3 million, $5.1 million, $3.3 million and $5.3 million and for the three and six months ended June 30, 2022 and 2021, respectively.

Investments – Available-for-sale. Securities available-for-sale are reported at fair value with unrealized holding gains and losses reported as a separate component of stockholders’ equity and other comprehensive income (loss), net of taxes. Securities that are held as available-for-sale are used as a part of our asset/liability management strategy. Securities that may be sold in response to interest rate changes, changes in prepayment risk, the need to increase regulatory capital, and other similar factors are classified as available-for-sale. The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326, Measurement of Credit Losses on Financial Instruments ("CECL"). The Company first assesses whether it intends to sell or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities that do not meet this criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, and changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

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Investments – Held-to-Maturity. Securities held-to-maturity ("HTM"), which include any security for which we have the positive intent and ability to hold until maturity, are reported at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized/accreted to the call date to interest income using the constant effective yield method over the estimated life of the security. The Company measures expected credit losses on HTM securities on a collective basis by major security type, with each type sharing similar risk characteristics. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company has made the election to exclude accrued interest receivable on HTM securities from the estimate of credit losses and report accrued interest separately on the consolidated balance sheets.

Loans Receivable and Allowance for Credit Losses. Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balance adjusted for any charge-offs, deferred fees or costs on originated loans. Interest income on loans is accrued over the term of the loans based on the principal balance outstanding. Loan origination fees and direct origination costs are capitalized and recognized as adjustments to yield on the related loans.

The allowance for credit losses on loans receivable is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, rental vacancy rate, housing price index and national retail sales index.

The allowance for credit losses is measured based on call report segment as these types of loans exhibit similar risk characteristics. The identified loan segments are as follows:

•1-4 family construction

•All other construction

•1-4 family revolving home equity lines of credit (“HELOC”) & junior liens

•1-4 family senior liens

•Multifamily

•Owner occupied commercial real estate

•Non-owner occupied commercial real estate

•Commercial & industrial, agricultural, non-depository financial institutions, purchase/carry securities, other

•Consumer auto

•Other consumer

•Other consumer - SPF

The allowance for credit losses for each segment is measured through the use of the discounted cash flow method. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. For loans that are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation if a specific reserve is not recorded.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies:

•Management has a reasonable expectation at the reporting date that troubled debt restructuring will be executed with an individual borrower.

•The extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

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Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factors ("Q-Factors") and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions.

Loans considered impaired, according to ASC 326, are loans for which, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. The aggregate amount of impairment of loans is utilized in evaluating the adequacy of the allowance for credit losses and amount of provisions thereto. Losses on impaired loans are charged against the allowance for credit losses when in the process of collection, it appears likely that such losses will be realized. The accrual of interest on impaired loans is discontinued when, in management’s opinion the collection of interest is doubtful or generally when loans are 90 days or more past due. When accrual of interest is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Loans are placed on non-accrual status when management believes that the borrower’s financial condition, after giving consideration to economic and business conditions and collection efforts, is such that collection of interest is doubtful, or generally when loans are 90 days or more past due. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Accrued interest related to non-accrual loans is generally charged against the allowance for credit losses when accrued in prior years and reversed from interest income if accrued in the current year. Interest income on non-accrual loans may be recognized to the extent cash payments are received, although the majority of payments received are usually applied to principal. Non-accrual loans are generally returned to accrual status when principal and interest payments are less than 90 days past due, the customer has made required payments for at least six months, and we reasonably expect to collect all principal and interest.

Acquisition Accounting and Acquired Loans. We account for our acquisitions under FASB ASC Topic 805, Business Combinations, which requires the use of the acquisition method of accounting. All identifiable assets acquired, including loans, are recorded at fair value. In accordance with ASC 326, the Company records both a discount and an allowance for credit losses on acquired loans. All purchased loans are recorded at fair value in accordance with the fair value methodology prescribed in FASB ASC Topic 820, Fair Value Measurements. The fair value estimates associated with the loans include estimates related to expected prepayments and the amount and timing of undiscounted expected principal, interest and other cash flows.

Purchased loans that have experienced more than insignificant credit deterioration since origination are purchase credit deteriorated (“PCD”) loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for impairment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures: The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for credit loss. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Foreclosed Assets Held for Sale. Real estate and personal properties acquired through or in lieu of loan foreclosure are to be sold and are initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Valuations are periodically performed by management, and the real estate and personal properties are carried at fair value less costs to sell. Gains and losses from the sale of other real estate and personal properties are recorded in non-interest income, and expenses used to maintain the properties are included in non-interest expenses.

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Intangible Assets. Intangible assets consist of goodwill and core deposit intangibles. Goodwill represents the excess purchase price over the fair value of net assets acquired in business acquisitions. The core deposit intangible represents the excess intangible value of acquired deposit customer relationships as determined by valuation specialists. The core deposit intangibles are being amortized over 48 to 121 months on a straight-line basis. Goodwill is not amortized but rather is evaluated for impairment on at least an annual basis. We perform an annual impairment test of goodwill and core deposit intangibles as required by FASB ASC 350, Intangibles - Goodwill and Other, in the fourth quarter or more often if events and circumstances indicate there may be an impairment.

Income Taxes. We account for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. We determine deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term “more likely than not” means a likelihood of more than 50 percent; the terms “examined” and “upon examination” also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to the management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

Both we and our subsidiary file consolidated tax returns. Our subsidiary provides for income taxes on a separate return basis, and remits to us amounts determined to be currently payable.

Stock Compensation. In accordance with FASB ASC 718, Compensation - Stock Compensation, and FASB ASC 505-50, Equity-Based Payments to Non-Employees, the fair value of each option award is estimated on the date of grant. We recognize compensation expense for the grant-date fair value of the option award over the vesting period of the award.

Acquisitions

Acquisition of Marine Portfolio

On February 4, 2022, the Company completed the purchase of the performing marine loan portfolio of Utah-based LendingClub Bank (“LendingClub”). Under the terms of the purchase agreement with LendingClub, the Company acquired yacht loans totaling approximately $242.2 million. This portfolio of loans is housed within the Company's Shore Premier Finance division, which is responsible for servicing the acquired loan portfolio and originating new loan production.

Acquisition of Happy Bancshares, Inc.

On April 1, 2022, the Company completed the acquisition of Happy Bancshares, Inc. (“Happy”), and merged Happy State Bank into Centennial Bank. The Company issued approximately 42.4 million shares of its common stock valued at approximately $958.8 million as of April 1, 2022. In addition, the holders of certain Happy stock-based awards received approximately $3.7 million in cash in cancellation of such awards, for a total transaction value of approximately $962.5 million.

Including the effects of the known purchase accounting adjustments, as of the acquisition date, Happy had approximately $6.68 billion in total assets, $3.65 billion in loans and $5.86 billion in customer deposits. Happy formerly operated its banking business from 62 locations in Texas.

For further discussion of the acquisition, see Note 2 "Business Combinations" to the Condensed Notes to Consolidated Financial Statements.

We will continue evaluating all types of potential bank acquisitions, which may include FDIC-assisted acquisitions as opportunities arise, to determine what is in the best interest of our Company. Our goal in making these decisions is to maximize the return to our investors.

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Branches

As opportunities arise, we will continue to open new (commonly referred to as de novo) branches in our current markets and in other attractive market areas.

As of June 30, 2022, we had 222 branch locations. There were 76 branches in Arkansas, 78 branches in Florida, 62 branches in Texas, five branches in Alabama and one branch in New York City.

Results of Operations

For the three and six months ended June 30, 2022 and 2021

Our net income decreased $63.1 million, or 79.8%, to $16.0 million for the three-month period ended June 30, 2022, from $79.1 million for the same period in 2021. On a diluted earnings per share basis, our earnings were $0.08 per share for the three-month period ended June 30, 2022 compared to $0.48 per share for the three-month period ended June 30, 2021. During the second quarter of 2022, we completed the previously announced acquisition of Happy Bancshares, Inc. ("Happy"). As a result of the acquisition of Happy, which we completed on April 1, 2022, we incurred $48.7 million in merger expenses and recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count," an $11.4 million provision for credit losses on acquired unfunded commitments, a $2.0 million provision for credit losses on acquired held-to-maturity investment securities. The summation of these items reduced earnings by $107.3 million and earnings per share by $0.39 per share for the three-month period ended June 30, 2022. The markets in which we operate have been experiencing significant economic uncertainty primarily related to inflationary concerns, continuing supply chain issues and the potential impacts of international unrest. However, excluding the impact of the acquisition of Happy, the Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2022. In addition, excluding the impact of the acquisition of Happy, the Company determined no additional provision for unfunded commitments was necessary as of June 30, 2022. During the three months ended June 30, 2022, the Company recorded $1.4 million in special dividend from equity investments, $2.4 million in recoveries on historic losses, $1.8 million loss for the decrease in the fair value of marketable securities and $2.1 million in TRUPS redemption fees.

Our net income decreased $89.8 million, or 52.6%, to $80.9 million for the six-month period ended June 30, 2022, from $170.7 million for the same period in 2021. On a diluted earnings per share basis, our earnings were $0.44 per share for the six-month period ended June 30, 2022 compared to $1.03 per share for the six-month period ended June 30, 2021. As a result of the acquisition of Happy, which we completed on April 1, 2022, we incurred $49.6 million in merger expenses and recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count," an $11.4 million provision for credit losses on acquired unfunded commitments, a $2.0 million provision for credit losses on acquired held-to-maturity investment securities. The summation of these items reduced earnings by $108.2 million and earnings per share by $0.44 per share for the six-month period ended June 30, 2022. The markets in which we operate have been experiencing significant economic uncertainty primarily related to inflationary concerns, continuing supply chain issues and the potential impacts of international unrest. However, excluding the impact of the acquisition of Happy, the Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2022. In addition, excluding the impact of the acquisition of Happy, the Company determined no additional provision for unfunded commitments was necessary as of June 30, 2022. During the six months ended June 30, 2022, the Company recorded a $324,000 adjustment for the increase in fair value of marketable securities, $1.4 million special dividend from equity investments, $2.1 million in TRUPS redemption fees and a $5.6 million recovery on historic losses.

Net Interest Income

Net interest income, our principal source of earnings, is the difference between the interest income generated by earning assets and the total interest cost of the deposits and borrowings obtained to fund those assets. Factors affecting the level of net interest income include the volume of earning assets and interest-bearing liabilities, yields earned on loans and investments, rates paid on deposits and other borrowings, the level of non-performing loans and the amount of non-interest-bearing liabilities supporting earning assets. Net interest income is analyzed in the discussion and tables below on a fully taxable equivalent basis. The adjustment to convert certain income to a fully taxable equivalent basis consists of dividing tax-exempt income by one minus the combined federal and state income tax rate (25.1475% for 2022 and 25.74% for 2021).

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The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the deposit and loan rates offered by financial institutions. In 2020, the Federal Reserve lowered the target rate to 0.00% to 0.25%. This remained in effect throughout all of 2021. On March 16, 2022, the target rate was increased to 0.25% to 0.50%. On May 4, 2022, the target rate was increased to 0.75% to 1.00%. On June 15, 2022, the target rate was increased to 1.50% to 1.75%. Presently, the Federal Reserve has indicated they are anticipating multiple rate increases for 2022.

Our net interest margin increased from 3.61% for the three-month period ended June 30, 2021 to 3.64% for the three-month period ended June 30, 2022. The yield on interest earning assets was 3.97% and 3.94% for the three months ended June 30, 2022 and 2021, respectively, as average interest earning assets increased from $15.89 billion to $22.18 billion. The increase in average earning assets is primarily due to a $3.30 billion increase in average loans receivable, a $2.31 billion increase in average investment securities, and $675.6 million increase in average interest-bearing balances due from banks due to the acquisition of Happy during the quarter. For the three months ended June 30, 2022 and 2021, we recognized $5.2 million and $5.8 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by one basis point. We recognized $1.4 million in event interest income for the three months ended June 30, 2022 compared to $942,000 for the three months ended June 30, 2021. This increased the net interest margin by one basis point.

Our net interest margin decreased from 3.81% for the six-month period ended June 30, 2021 to 3.46% for the six-month period ended June 30, 2022. The yield on interest earning assets was 3.79% and 4.17% for the six-month period ended June 30, 2022 and 2021, respectively, as average interest earning assets increased from $15.51 billion to $19.49 billion. The increase in average earning assets is primarily the result of a $1.59 billion increase in average investment securities, a $1.28 billion increase in average interest-bearing balances due from banks and a $1.12 billion increase in average loans receivable. For the six months ended June 30, 2022 and 2021, we recognized $8.3 million and $11.3 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by 3 basis points. The Company experienced an $18.8 million reduction in interest income from PPP loans due to the forgiveness of the PPP loans and the acceleration of the deferred fees for the loans that were forgiven. This was dilutive to the net interest margin by approximately 9 basis points.

Net interest income on a fully taxable equivalent basis increased $58.2 million, or 40.7%, to $201.2 million for the three-month period ended June 30, 2022, from $143.0 million for the same period in 2021. This increase in net interest income for the three-month period ended June 30, 2022 was the result of a $63.2 million increase in interest income, partially offset by an $5.0 million increase in interest expense, on a fully taxable equivalent basis. The $63.2 million increase in interest income was primarily the result of the higher level of average interest earning assets due to the acquisition of Happy during the second quarter of 2022 and the increasing interest rate environment. The higher yield on earning assets resulted in an increase in interest income of approximately $6.9 million, and the increase in earning assets resulted in an increase in interest income of approximately $56.3 million. The $5.0 million increase in interest expense is primarily the result of the higher level of average interest bearing liabilities due to the acquisition of Happy during the second quarter of 2022 and the increasing interest rate environment. The higher yield on interest bearing liabilities resulted in an increase in interest expense of approximately $548,000 and the increase in interest bearing liabilities resulted in an increase in interest expense of approximately $4.5 million.

Net interest income on a fully taxable equivalent basis increased $41.2 million, or 14.1%, to $334.1 million for the six-month period ended June 30, 2022, from $292.9 million for the same period in 2021. This increase in net interest income for the six-month period ended June 30, 2022 was the result of a $45.4 million increase in interest income, partially offset by a $4.2 million increase in interest expense, on a fully taxable equivalent basis. The $45.4 million increase in interest income was primarily the result of the higher level of average interest earning assets due to the acquisition of Happy during the second quarter of 2022 partially offset by lower earning asset yields. The lower yield on earning assets resulted in a decrease in interest income of approximately $844,000, and the increase in earning assets resulted in an increase in interest income of approximately $46.2 million. The $4.2 million increase in interest expense is primarily the result of the higher level of average interest bearing liabilities due to the acquisition of Happy during the second quarter of 2022 partially offset by lower interest rates paid on interest-bearing liabilities. The lower yield on interest bearing liabilities resulted in an decrease in interest expense of approximately $2.8 million and the increase in interest bearing liabilities resulted in an increase in interest expense of approximately $7.0 million.

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Tables 2 and 3 reflect an analysis of net interest income on a fully taxable equivalent basis for the three and six months ended June 30, 2022 and 2021, as well as changes in fully taxable equivalent net interest margin for the three and six months ended June 30, 2022 compared to the same period in 2021.

Table 2: Analysis of Net Interest Income

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
	(Dollars in thousands)
Interest income	$	217,013		$	154,481		$	361,916		$	317,132
Fully taxable equivalent adjustment	2,471			1,774			4,209			3,595
Interest income – fully taxable equivalent	219,484			156,255			366,125			320,727
Interest expense	18,255			13,229			32,010			27,792
Net interest income – fully taxable equivalent	$	201,229		$	143,026		$	334,115		$	292,935
Yield on earning assets – fully taxable equivalent	3.97		%	3.94		%	3.79		%	4.17		%
Cost of interest-bearing liabilities	0.49			0.49			0.49			0.53
Net interest spread – fully taxable equivalent	3.48			3.45			3.30			3.64
Net interest margin – fully taxable equivalent	3.64			3.61			3.46			3.81

Table 3: Changes in Fully Taxable Equivalent Net Interest Margin

	Three Months Ended June 30,		Six Months Ended June 30,
	2022 vs. 2021		2022 vs. 2021
	(In thousands)
Increase in interest income due to change in earning assets	$	56,278	$	46,242
Increase (decrease) increase in interest income due to change in earning asset yields	6,951		(844)
Increase in interest expense due to change in interest-bearing liabilities	(4,478)		(7,014)
(Increase) decrease in interest expense due to change in interest rates paid on interest-bearing liabilities	(548)		2,796
Increase (decrease) increase in net interest income	$	58,203	$	41,180

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Table 4 shows, for each major category of earning assets and interest-bearing liabilities, the average amount outstanding, the interest income or expense on that amount and the average rate earned or expensed for the three and six months ended June 30, 2022 and 2021, respectively. The table also shows the average rate earned on all earning assets, the average rate expensed on all interest-bearing liabilities, the net interest spread and the net interest margin for the same periods. The analysis is presented on a fully taxable equivalent basis. Non-accrual loans were included in average loans for the purpose of calculating the rate earned on total loans.

Table 4: Average Balance Sheets and Net Interest Income Analysis

	Three Months Ended June 30,
	2022						2021
	Average Balance		Income / Expense		Yield / Rate		Average Balance		Income / Expense		Yield / Rate
	(Dollars in thousands)
ASSETS
Earnings assets
Interest-bearing balances due from     banks	$	3,252,674	$	6,565	0.81	%	$	2,577,101	$	707	0.11	%
Federal funds sold	1,857		3		0.65		51		—		—
Investment securities – taxable	3,817,209		20,941		2.20		1,909,485		7,185		1.51
Investment securities – non-taxable	1,270,602		10,055		3.17		864,416		6,494		3.01
Loans receivable	13,838,687		181,920		5.27		10,541,466		141,869		5.40
Total interest-earning assets	22,181,029		219,484		3.97	%	15,892,519		156,255		3.94	%
Non-earning assets	2,607,336						1,598,840
Total assets	$	24,788,365					$	17,491,359
LIABILITIES AND     STOCKHOLDERS’ EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction     accounts	$	12,632,612	$	9,770	0.31	%	$	8,684,726	3,960		0.18	%
Time deposits	1,170,860		959		0.33		1,123,287		2,474		0.88
Total interest-bearing deposits	13,803,472		10,729		0.31		9,808,013		6,434		0.26
Federal funds purchased	869		2		0.92		—		—		—
Securities sold under agreement to repurchase	123,011		187		0.61		157,570		107		0.27
FHLB and other borrowed funds	400,000		1,896		1.90		400,000		1,896		1.90
Subordinated debentures	568,187		5,441		3.84		370,613		4,792		5.19
Total interest-bearing liabilities	14,895,539		18,255		0.49	%	10,736,196		13,229		0.49	%
Non-interest-bearing liabilities
Non-interest-bearing deposits	6,138,497						3,966,968
Other liabilities	162,571						128,048
Total liabilities	21,196,607						14,831,212
Stockholders’ equity	3,591,758						2,660,147
Total liabilities and stockholders’ equity	$	24,788,365					$	17,491,359
Net interest spread					3.48	%					3.45	%
Net interest income and margin			$	201,229	3.64	%			$	143,026	3.61	%

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	Six Months Ended June 30,
	2022						2021
	Average Balance		Income / Expense		Yield / Rate		Average Balance		Income / Expense		Yield / Rate
	(Dollars in thousands)
ASSETS
Earnings assets
Interest-bearing balances due from banks	$	3,374,606	$	8,238	0.49	%	$	2,096,452	$	1,117	0.11	%
Federal funds sold	1,805		4		0.45		84		—		—
Investment securities – taxable	3,155,481		30,021		1.92		1,774,026		13,438		1.53
Investment securities – non-taxable	1,061,822		16,339		3.10		856,332		13,194		3.11
Loans receivable	11,899,115		311,523		5.28		10,780,972		292,978		5.48
Total interest-earning assets	19,492,829		366,125		3.79	%	15,507,866		320,727		4.17	%
Non-earning assets	2,115,558						1,599,393
Total assets	$	21,608,387					$	17,107,259
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest- bearing transaction accounts	$	11,007,232	$	13,643	0.25	%	$	8,512,714	8,677		0.21	%
Time deposits	1,013,600		1,980		0.39		1,166,121		5,462		0.94
Total interest-bearing deposits	12,020,832		15,623		0.26		9,678,835		14,139		0.29
Federal funds purchased	437		2		0.92		—		—		—
Securities sold under agreement to repurchase	130,248		295		0.46		158,628		297		0.38
FHLB borrowed funds	400,000		3,771		1.90		400,000		3,771		1.90
Subordinated debentures	589,917		12,319		4.21		370,518		9,585		5.22
Total interest-bearing liabilities	13,141,434		32,010		0.49	%	10,607,981		27,792		0.53	%
Non-interest-bearing liabilities
Non-interest-bearing deposits	5,152,673						3,724,854
Other liabilities	142,080						131,446
Total liabilities	18,436,187						14,464,281
Stockholders’ equity	3,172,200						2,642,978
Total liabilities and stockholders’ equity	$	21,608,387					$	17,107,259
Net interest spread					3.30	%					3.64	%
Net interest income and margin			$	334,115	3.46	%			$	292,935	3.81	%

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Table 5 shows changes in interest income and interest expense resulting from changes in volume and changes in interest rates for the three and six months ended June 30, 2022 compared to the same period in 2021, on a fully taxable basis. The changes in interest rate and volume have been allocated to changes in average volume and changes in average rates, in proportion to the relationship of absolute dollar amounts of the changes in rates and volume.

Table 5: Volume/Rate Analysis

	Three Months Ended June 30,						Six Months Ended June 30,
	2022 over 2021						2022 over 2021
	Volume		Yield / Rate		Total		Volume		Yield / Rate		Total
	(In thousands)
Increase (decrease) in:
Interest income:
Interest-bearing balances due from banks	$	232	$	5,626	$	5,858	$	1,036	$	6,085	$	7,121
Federal funds sold	—		3		3		—		4		4
Investment securities – taxable	9,432		4,324		13,756		12,480		4,103		16,583
Investment securities – non-taxable	3,198		363		3,561		3,162		(17)		3,145
Loans receivable	43,416		(3,365)		40,051		29,564		(11,019)		18,545
Total interest income	56,278		6,951		63,229		46,242		(844)		45,398
Interest expense:
Interest-bearing transaction and savings deposits	2,295		3,515		5,810		2,859		2,107		4,966
Time deposits	101		(1,616)		(1,515)		(638)		(2,844)		(3,482)
Federal funds purchased	1		1		2		1		1		2
Securities sold under agreement to repurchase	(28)		108		80		(58)		56		(2)
FHLB borrowed funds	—		—		—		—		—		—
Subordinated debentures	2,109		(1,460)		649		4,850		(2,116)		2,734
Total interest expense	4,478		548		5,026		7,014		(2,796)		4,218
Increase (decrease) in net interest income	$	51,800	$	6,403	$	58,203	$	39,228	$	1,952	$	41,180

Provision for Credit Losses

The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credits, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. ASC 326 requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses as well as the credit quality and underwriting standards of a company’s portfolio. In addition, ASC 326 requires credit losses to be presented as an allowance rather than as a write-down on available for sale debt securities management does not intend to sell or believes that it is more likely than not, they will be required to sell.

Loans. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, rental vacancy rate, housing price index and national retail sales index.

Acquired loans. In accordance with ASC 326, the Company records both a discount and an allowance for credit losses on acquired loans. This is commonly referred to as “double accounting" (or "double count").

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The allowance for credit losses is measured based on call report segment as these types of loans exhibit similar risk characteristics. The identified loan segments are as follows:

•1-4 family construction

•All other construction

•1-4 family revolving HELOC & junior liens

•1-4 family senior liens

•Multifamily

•Owner occupied commercial real estate

•Non-owner occupied commercial real estate

•Commercial & industrial, agricultural, non-depository financial institutions, purchase/carry securities, other

•Consumer auto

•Other consumer

•Other consumer - SPF

The allowance for credit losses for each segment is measured through the use of the discounted cash flow method. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan.

During the three-month and six-month periods ended June 30, 2022, the Company recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count" and an $11.4 million provision for credit losses on acquired unfunded commitments resulting from the acquisition of Happy on April 1, 2022. As of June 30, 2022, the markets in which we operate have been experiencing significant economic uncertainty primarily related to inflationary concerns, continuing supply chain issues and the potential impacts of international unrest. However, excluding the impact of the acquisition of Happy, the Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2022. In addition, excluding the impact of the acquisition of Happy, the Company determined no additional provision for unfunded commitments was necessary as of June 30, 2022.

Net charge-offs to average total loans was 0.07% for the three months ended June 30, 2022 compared to 0.09% for the three months ended June 30, 2021. Net charge-offs to average total loans was 0.08% for the six months ended June 30, 2022 compared to 0.09% for the six months ended June 30, 2021.

Investments – Available-for-sale: The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326, Measurement of Credit Losses on Financial Instruments. The Company first assesses whether it intends to sell or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities that do not meet this criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, and changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Investments – Held-to-Maturity. The Company measures expected credit losses on HTM securities on a collective basis by major security type, with each type sharing similar risk characteristics. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company has made the election to exclude accrued interest receivable on HTM securities from the estimate of credit losses and report accrued interest separately on the consolidated balance sheets.

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The Company recorded a $2.0 million provision for credit losses on the held-to-maturity investment securities during the second quarter of 2022 as a result of the investment securities acquired as part of the Happy acquisition. Of the Company's held-to-maturity securities, $1.09 billion, or 79.7% are municipal securities. To estimate the necessary loss provision, the Company utilized historical default and recovery rates of the municipal bond sector and applied these rates using a pooling method. The remainder of investments classified as held-to-maturity are U.S. Treasury securities. Due to the inherent low risk in U.S. Treasury securities, no provision for credit loss was established on that portion of the portfolio.

At June 30, 2022, the Company determined that the allowance for credit losses of $842,000, resulting from economic uncertainty, was adequate for the available-for-sale investment portfolio, and the allowance for credit losses for the HTM portfolio resulting from the Happy acquisition was considered adequate. No additional provision for credit losses was considered necessary for the portfolio.

Non-Interest Income

Total non-interest income was $44.6 million and $75.3 million for the three and six months ended June 30, 2022, compared to $31.1 million and $76.4 million for the same period in 2021. Our recurring non-interest income includes service charges on deposit accounts, other service charges and fees, trust fees, mortgage lending income, insurance commissions, increase in cash value of life insurance, fair value adjustment for marketable securities and dividends.

Table 6 measures the various components of our non-interest income for the three and six months ended June 30, 2022 and 2021, respectively, as well as changes for the three and six months ended June 30, 2022 compared to the same period in 2021.

Table 6: Non-Interest Income

	Three Months Ended June 30,				2021 Change from 2020				Six Months Ended June 30,				2021 Change from 2020
	2022		2021						2022		2021
	(Dollars in thousands)
Service charges on deposit accounts	$	10,084	$	5,116	$	4,968	97.1	%	$	16,224	$	10,118	$	6,106	60.3	%
Other service charges and fees	12,541		9,659		2,882		29.8		20,274		17,267		3,007		17.4
Trust fees	4,320		444		3,876		873.0		4,894		966		3,928		406.6
Mortgage lending income	5,996		6,202		(206)		(3.3)		9,912		14,369		(4,457)		(31.0)
Insurance commissions	658		478		180		37.7		1,138		970		168		17.3
Increase in cash value of life insurance	1,140		537		603		112.3		1,632		1,039		593		57.1
Dividends from FHLB, FRB, FNBB & other	3,945		2,646		1,299		49.1		4,643		11,255		(6,612)		(58.7)
Gain on sale of SBA loans	—		1,149		(1,149)		(100.0)		95		1,149		(1,054)		(91.7)
Gain (loss) on sale of branches, equipment and other assets, net	2		(23)		25		108.7		18		(52)		70		134.6
Gain on OREO, net	9		619		(610)		(98.5)		487		1,020		(533)		(52.3)
Gain on securities, net	—		—		—		0.0		—		219		(219)		(100.0)
Fair value adjustment for marketable securities	(1,801)		1,250		(3,051)		(244.1)		324		7,032		(6,708)		(95.4)
Other income	7,687		3,043		4,644		152.6		15,609		11,044		4,565		41.3
Total non-interest income	$	44,581	$	31,120	$	13,461	43.3	%	$	75,250	$	76,396	$	(1,146)	(1.5)	%

Non-interest income increased $13.5 million, or 43.3%, to $44.6 million for the three months ended June 30, 2022 from $31.1 million for the same period in 2021. The primary factors that resulted in this increase were the increase in service charges on deposit account and the increase in other income. Other factors were changes related to other services charges and fees, trust fees, dividends from FHLB, FRB, FNBB and other, gain on sale of SBA loans, gain on OREO and fair value adjustment for marketable securities.

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Additional details for the three months ended June 30, 2022 on some of the more significant changes are as follows:

•The $5.0 million increase in service charges on deposit accounts is primarily related to an increase in overdraft fees resulting from the acquisition of Happy.

•The $2.9 million increase in other service charges and fees is primarily related to an increase in interchange fees resulting from the acquisition of Happy.

•The $3.9 million increase in trust fees is primarily related to an increase in trust fees resulting from the acquisition of Happy.

•The $1.3 million increase for dividends from FHLB, FRB, FNBB & other is primarily due to an increase in special dividends from equity investments and an increase in FRB stock holdings related to the acquisition of Happy.

•The $1.1 million decrease in gains on sales of SBA loans was due to no SBA loan sales taking place during the second quarter of 2022.

•The $610,000 decrease in gains on OREO resulted from a reduction in the level of sales of OREO during 2022.

•The $3.1 million decrease in the fair value adjustment for marketable securities is due to a reduction in the fair market values of marketable securities held by the Company.

•The $4.6 million increase in other income is primarily due to a $2.8 million increase in additional income for items previously charged off, a $878,000 increase in investment brokerage fee income, a $260,000 increase in real estate rental income and a $492,000 increase in building rental income related to the acquisition of Happy.

Non-interest income decreased $1.1 million, or 1.5%, to $75.3 million for the six months ended June 30, 2022 from $76.4 million for the same period in 2021. The primary factors that resulted in this decrease were the reduction in dividends from FHLB, FRB, FNBB & other, the reduction in fair value adjustment for marketable securities and the reduction in mortgage lending income which was partially offset by the increase in service charges on deposit accounts, increase in other income and increase in trust fees. Other factors were changes related to other service charges and fees and gain on sale of SBA loans.

Additional details for the six months ended June 30, 2022 on some of the more significant changes are as follows:

•The $6.1 million increase in service charges on deposit accounts is primarily related to an increase in overdraft fees resulting from the acquisition of Happy.

•The $3.0 million increase in other service charges and fees is primarily related to an increase in interchange acquisition fees resulting from the acquisition of Happy.

•The $3.9 million increase in trust fees is primarily related to an increase in employee and personal trust fees resulting from the acquisition of Happy.

•The $4.5 million decrease in mortgage lending income is primarily due to a decrease in volume of secondary market loans from the high volume of loans during 2021.

•The $6.6 million decrease for dividends from FHLB, FRB, FNBB & other is primarily due to a decrease in special dividends from equity investments, partially offset by an increase in FRB stock holdings related to the acquisition of Happy.

•The $1.1 million decrease in gains on sales of SBA loans is primarily due to decrease in the volume of SBA loan sales during 2022.

•The $533,000 decrease in gains on OREO resulted from a reduction in the level of sales of OREO during 2022.

•The $6.7 million decrease in the fair value adjustment for marketable securities is due to a reduction in the increase of the fair market values of marketable securities held by the Company.

•The $4.6 million increase in other income is primarily due to a $2.8 million increase in additional income for items previously charged off and a $1.4 million increase in investment brokerage fee income related to the acquisition of Happy.

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Non-Interest Expense

Non-interest expense primarily consists of salaries and employee benefits, occupancy and equipment, data processing, and other expenses such as advertising, merger and acquisition expenses, amortization of intangibles, electronic banking expense, FDIC and state assessment, insurance, legal and accounting fees and other professional fees.

Table 7 below sets forth a summary of non-interest expense for the three and six months ended June 30, 2022 and 2021, as well as changes for the three and six months ended June 30, 2022 compared to the same period in 2021.

Table 7: Non-Interest Expense

	Three Months Ended June 30,				2022 Change from 2021				Six Months Ended June 30,				2022 Change from 2021
	2022		2021						2022		2021
	(Dollars in thousands)
Salaries and employee benefits	$	65,795	$	42,462	$	23,333	55.0	%	$	109,346	$	84,521	$	24,825	29.4	%
Occupancy and equipment	14,256		9,042		5,214		57.7		23,400		18,279		5,121		28.0
Data processing expense	10,094		5,893		4,201		71.3		17,133		11,763		5,370		45.7
Merger and acquisition expenses	48,731		—		48,731		100.0		49,594		—		49,594		100.0
Other operating expenses:
Advertising	2,117		1,194		923		77.3		3,383		2,240		1,143		51.0
Amortization of intangibles	2,477		1,421		1,056		74.3		3,898		2,842		1,056		37.2
Electronic banking expense	3,352		2,616		736		28.1		5,890		4,854		1,036		21.3
Directors' fees	375		414		(39)		(9.4)		779		797		(18)		(2.3)
Due from bank service charges	396		273		123		45.1		666		522		144		27.6
FDIC and state assessment	2,390		1,108		1,282		115.7		4,058		2,471		1,587		64.2
Insurance	973		787		186		23.6		1,743		1,568		175		11.2
Legal and accounting	1,061		1,058		3		0.3		1,858		1,904		(46)		(2.4)
Other professional fees	2,254		1,796		458		25.5		3,863		3,409		454		13.3
Operating supplies	995		465		530		114.0		1,749		952		797		83.7
Postage	556		292		264		90.4		862		630		232		36.8
Telephone	384		365		19		5.2		721		711		10		1.4
Other expense	9,276		3,796		5,480		144.4		13,435		8,385		5,050		60.2
Total non-interest expense	$	165,482	$	72,982	$	92,500	126.7	%	$	242,378	$	145,848	$	96,530	66.2	%

Non-interest expense increased $92.5 million, or 126.7%, to $165.5 million for the three months ended June 30, 2022 from $73.0 million for the same period in 2021. The primary factors that resulted in this increase were the changes related to salaries and employee benefits and merger and acquisition expense. Other factors were changes related to occupancy and equipment, data processing expense, amortization of intangibles, FDIC and state assessment fees and other expenses.

Additional details for the three months ended June 30, 2022 on some of the more significant changes are as follows:

•The $23.3 million increase in salaries and employee benefits expense is primarily due to increased salary expenses and insurance expenses related to the acquisition of Happy.

•The $5.2 million increase in occupancy and equipment expenses is primarily due to increases in depreciation on buildings, machinery and equipment, increases in utility expenses and increases in property taxes related to the acquisition of Happy.

•The $4.2 million increase in data processing expense is primarily due to increases in telecommunication fees, computer software fees, licensing fee and increases in internet banking and cash management expenses related to the acquisition of Happy.

•The $48.7 increase in merger and acquisition expense is related to costs associated with the acquisition of Happy.

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•The $923,000 increase in advertising expense is related to the acquisition of Happy.

•The $1.1 million increase in amortization of intangibles is due to the acquisition of Happy.

•The $736,000 increase in electronic banking expense is due to increased debit card processing fees and interchange network expenses resulting from the acquisition of Happy.

•The $1.3 million increase in FDIC and state assessment expense is primarily due to FDIC assessment reductions for 2021 and the acquisition of Happy during the second quarter of 2022.

•The $5.5 million increase in other expenses is primarily related to the acquisition of Happy as well as $2.1 million in TRUPS redemption fees.

Non-interest expense increased $96.5 million, or 66.2%, to $242.4 million for the three months ended June 30, 2022 from $145.8 million for the same period in 2021. The primary factors that resulted in this increase were the changes related to salaries and employee benefits and merger and acquisition expense. Other factors were changes related to occupancy and equipment expense, data processing expense, advertising, amortization of intangibles, electronic banking expense, FDIC and state assessment fees and other expenses.

Additional details for the six months ended June 30, 2022 on some of the more significant changes are as follows:

•The $24.8 million increase in salaries and employee benefits expense is primarily due to the acquisition of Happy.

•The $5.1 million increase in occupancy and equipment expense is primarily due to increases in depreciation on buildings, machinery and equipment, increases in utility expenses and increases in property taxes related to the acquisition of Happy.

•The $5.4 million increase in data processing expense is primarily due to increases in telecommunication fees, computer software fees, licensing fee and increases in internet banking and cash management expenses related to the acquisition of Happy.

•The $49.6 million increase in merger and acquisition expense is related to costs associated with the acquisition of Happy.

•The $1.1 million increase in advertising expense is related to the acquisition of Happy.

•The $1.1 million increase in amortization of intangibles is due to the acquisition of Happy.

•The $1.0 million increase in electronic banking expense is due to increased debit card processing fees and interchange network expenses resulting from the acquisition of Happy.

•The $1.6 million increase in FDIC and state assessment expense is primarily due to FDIC assessment reductions for 2021 and the acquisition of Happy during the second quarter of 2022.

•The $5.1 million increase in other expenses is primarily related to the acquisition of Happy. as well as $2.1 million in TRUPS redemption fees.

Income Taxes

Income tax expense decreased $21.8 million, or 86.9%, to $3.3 million for the three-month period ended June 30, 2022, from $25.1 million for the same period in 2021. Income tax expense decreased $30.6 million, or 56.8%, to $23.3 million for the six-month period ended June 30, 2022, from $54.0 million for the same period in 2021. The effective income tax rate was 17.09% and 22.38% for the three and six months ended June 30, 2022, compared to 24.07% and 24.02% for the same periods in 2021. The marginal tax rate was 25.1475% and 25.74% 2022 and 2021, respectively.

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Financial Condition as of and for the Period Ended June 30, 2022 and December 31, 2021

Our total assets as of June 30, 2022 increased $6.20 billion to $24.25 billion from the $18.05 billion reported as of December 31, 2021. The increase in total assets is primarily due to the acquisition of $6.68 billion in total assets, net of purchase accounting adjustments, from Happy during the second quarter of 2022. Cash and cash equivalents decreased $833.9 million, for the six months ended June 30, 2022. Our loan portfolio balance increased to $13.92 billion as of June 30, 2022 from $9.84 billion at December 31, 2021. The increase in loans was primarily due to the acquisition of $3.65 billion in loans, net of purchase accounting adjustments, from Happy in the second quarter of 2022 and $242.2 million in marine loans from LendingClub Bank during the first quarter of 2022, as well as $192.9 million in organic loan growth. Total deposits increased $5.32 billion to $19.58 billion as of June 30, 2022 from $14.26 billion as of December 31, 2021. The increase in deposits was primarily due to the acquisition of $5.86 billion in deposits, net of purchase accounting adjustments, from Happy in the second quarter of 2022. Stockholders’ equity increased $732.8 million to $3.50 billion as of June 30, 2022, compared to $2.77 billion as of December 31, 2021. The $732.8 million increase in stockholders’ equity is primarily associated with the $961.3 million in common stock issued to Happy shareholders for the acquisition of Happy on April 1, 2022 and the $80.9 million in net income for the six months ended June 30, 2022, partially offset by the $226.4 million in other comprehensive loss, the $61.0 million of shareholder dividends paid and stock repurchases of $26.6 million in 2022.

Loan Portfolio

Loans Receivable

Our loan portfolio averaged $13.84 billion and $10.54 billion during the three months ended June 30, 2022 and 2021, respectively. Our loan portfolio averaged $11.90 billion and $10.78 billion during the six months ended June 30, 2022 and 2021, respectively. Loans receivable were $13.92 billion and $9.84 billion as of June 30, 2022 and December 31, 2021, respectively.

From December 31, 2021 to June 30, 2022, the Company experienced an increase of approximately $4.09 billion in loans. The increase in loans was primarily due to the acquisition of $3.65 billion in loans, net of purchase accounting adjustments, from Happy in the second quarter of 2022 and $242.2 million in marine loans from LendingClub Bank during the first quarter of 2022, as well as $192.9 million in organic loan growth. The $192.9 million in organic loan growth included $498.6 million in loan growth for Centennial CFG which was partially offset by $177.9 million in loan decline within the remaining footprint as well as $127.8 million in PPP loan decline. As of June 30, 2022, the Company had $37.2 million of PPP loans.

The most significant components of the loan portfolio were commercial real estate, residential real estate, consumer and commercial and industrial loans. These loans are generally secured by residential or commercial real estate or business or personal property. Although these loans are primarily originated within our franchises in Arkansas, Florida, Texas, Alabama and Centennial CFG, the property securing these loans may not physically be located within our market areas of Arkansas, Florida, Texas, Alabama and New York. Loans receivable were approximately $3.03 billion, $3.49 billion, $3.66 billion, $202.5 million, $1.12 billion and $2.42 billion as of June 30, 2022 in Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG, respectively.

As of June 30, 2022, we had approximately $1.05 billion of construction land development loans which were collateralized by land. This consisted of approximately $136.8 million for raw land and approximately $912.5 million for land with commercial and/or residential lots.

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Table 8 presents our loans receivable balances by category as of June 30, 2022 and December 31, 2021.

Table 8: Loans Receivable

	June 30, 2022		December 31, 2021
	(In thousands)
Real estate:
Commercial real estate loans:
Non-farm/non-residential	$	5,092,539	$	3,889,284
Construction/land development	2,595,384		1,850,050
Agricultural	329,106		130,674
Residential real estate loans:
Residential 1-4 family	1,708,221		1,274,953
Multifamily residential	389,633		280,837
Total real estate	10,114,883		7,425,798
Consumer	1,106,343		825,519
Commercial and industrial	2,187,771		1,386,747
Agricultural	324,630		43,920
Other	190,246		154,105
Total loans receivable	$	13,923,873	$	9,836,089

Commercial Real Estate Loans. We originate non-farm and non-residential loans (primarily secured by commercial real estate), construction/land development loans, and agricultural loans, which are generally secured by real estate located in our market areas. Our commercial mortgage loans are generally collateralized by first liens on real estate and amortized (where defined) over a 15 to 30-year period with balloon payments due at the end of one to five years. These loans are generally underwritten by assessing cash flow (debt service coverage), primary and secondary source of repayment, the financial strength of any guarantor, the strength of the tenant (if any), the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. Generally, we will loan up to 85% of the value of improved property, 65% of the value of raw land and 75% of the value of land to be acquired and developed. A first lien on the property and assignment of lease is required if the collateral is rental property, with second lien positions considered on a case-by-case basis.

As of June 30, 2022, commercial real estate loans totaled $8.02 billion, or 57.6%, of loans receivable, as compared to $5.87 billion, or 59.7%, of loans receivable, as of December 31, 2021. Commercial real estate loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $1.97 billion, $2.27 billion, $2.14 billion, $87.9 million, zero and $1.55 billion at June 30, 2022, respectively.

Residential Real Estate Loans. We originate one to four family, residential mortgage loans generally secured by property located in our primary market areas. Approximately 38.6% and 51.6% of our residential mortgage loans consist of owner occupied 1-4 family properties and non-owner occupied 1-4 family properties (rental), respectively, as of June 30, 2022, with the remaining 9.8% relating to condos and mobile homes. Residential real estate loans generally have a loan-to-value ratio of up to 90%. These loans are underwritten by giving consideration to the borrower’s ability to pay, stability of employment or source of income, debt-to-income ratio, credit history and loan-to-value ratio.

As of June 30, 2022, residential real estate loans totaled $2.10 billion, or 15.1%, of loans receivable, compared to $1.56 billion, or 15.8%, of loans receivable, as of December 31, 2021. Residential real estate loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $416.6 million, $862.2 million, $562.8 million, $49.3 million, zero and $206.9 million at June 30, 2022, respectively.

Consumer Loans. Our consumer loans are composed of secured and unsecured loans originated by our bank, the primary portion of which consists of loans to finance USCG registered high-end sail and power boats within our SPF division. The performance of consumer loans will be affected by the local and regional economies as well as the rates of personal bankruptcies, job loss, divorce and other individual-specific characteristics.

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As of June 30, 2022, consumer loans totaled $1.11 billion, or 7.9%, of loans receivable, compared to $825.5 million, or 8.4%, of loans receivable, as of December 31, 2021. Consumer loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $23.2 million, $7.8 million, $31.3 million, $977,000, $1.04 billion and zero at June 30, 2022, respectively.

Commercial and Industrial Loans. Commercial and industrial loans are made for a variety of business purposes, including working capital, inventory, equipment and capital expansion. The terms for commercial loans are generally one to seven years. Commercial loan applications must be supported by current financial information on the borrower and, where appropriate, by adequate collateral. Commercial loans are generally underwritten by addressing cash flow (debt service coverage), primary and secondary sources of repayment, the financial strength of any guarantor, the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. The loan to value ratio depends on the type of collateral. Generally, accounts receivable are financed at between 50% and 80% of accounts receivable less than 60 days past due. Inventory financing will range between 50% and 80% (with no work in process) depending on the borrower and nature of inventory. We require a first lien position for those loans.

As of June 30, 2022, commercial and industrial loans totaled $2.19 billion, or 15.7%, of loans receivable, compared to $1.39 billion, or 14.1%, of loans receivable, as of December 31, 2021. Commercial and industrial loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $453.9 million, $288.4 million, $653.0 million, $56.4 million, $73.1 million and $662.9 million at June 30, 2022, respectively.

Non-Performing Assets

We classify our problem loans into three categories: past due loans, special mention loans and classified loans (accruing and non-accruing).

When management determines that a loan is no longer performing, and that collection of interest appears doubtful, the loan is placed on non-accrual status. Loans that are 90 days past due are placed on non-accrual status unless they are adequately secured and there is reasonable assurance of full collection of both principal and interest. Our management closely monitors all loans that are contractually 90 days past due, treated as “special mention” or otherwise classified or on non-accrual status.

Purchased loans that have experienced more than insignificant credit deterioration since origination are purchase credit deteriorated (“PCD”) loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for impairment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses. The Company held approximately $152.3 million and $448,000 in PCD loans, as of June 30, 2022 and December 31, 2021, respectively.

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Table 9 sets forth information with respect to our non-performing assets as of June 30, 2022 and December 31, 2021. As of these dates, all non-performing restructured loans are included in non-accrual loans.

Table 9: Non-performing Assets

	As of June 30, 2022			As of December 31, 2021
	(Dollars in thousands)
Non-accrual loans	$	44,170		$	47,158
Loans past due 90 days or more (principal or interest payments)	16,432			3,035
Total non-performing loans	60,602			50,193
Other non-performing assets
Foreclosed assets held for sale, net	373			1,630
Other non-performing assets	104			—
Total other non-performing assets	477			1,630
Total non-performing assets	$	61,079		$	51,823
Allowance for credit losses to non-accrual loans	666.21		%	501.96		%
Allowance for credit losses to non-performing loans	485.57			471.61
Non-accrual loans to total loans	0.32			0.48
Non-performing loans to total loans	0.44			0.51
Non-performing assets to total assets	0.25			0.29

Our non-performing loans are comprised of non-accrual loans and accruing loans that are contractually past due 90 days. Our bank subsidiary recognizes income principally on the accrual basis of accounting. When loans are classified as non-accrual, the accrued interest is charged off and no further interest is accrued, unless the credit characteristics of the loan improve. If a loan is determined by management to be uncollectible, the portion of the loan determined to be uncollectible is then charged to the allowance for credit losses.

Total non-performing loans were $60.6 million and $50.2 million as of June 30, 2022 and December 31, 2021, respectively. Non-performing loans at June 30, 2022 were $15.0 million, $33.3 million, $5.5 million, $813,000, $1.3 million and $4.7 million in the Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets, respectively.

The $4.7 million balance of non-accrual loans for our Centennial CFG market consists of one loan that is assessed for credit risk by the Federal Reserve under the Shared National Credit Program. The decision to place this loan on non-accrual status was made by the Federal Reserve and not the Company. The loan that makes up the total balance is still current on both principal and interest. However, all interest payments are currently being applied to the principal balance. Because the Federal Reserve required us to place this loan on non-accrual status, we have reversed any interest that had accrued subsequent to the non-accrual date designated by the Federal Reserve.

Troubled debt restructurings (“TDRs”) generally occur when a borrower is experiencing, or is expected to experience, financial difficulties in the near term. As a result, we will work with the borrower to prevent further difficulties, and ultimately to improve the likelihood of recovery on the loan. In those circumstances it may be beneficial to restructure the terms of a loan and work with the borrower for the benefit of both parties, versus forcing the property into foreclosure and having to dispose of it in an unfavorable and depressed real estate market. When we have modified the terms of a loan, we usually either reduce the monthly payment and/or interest rate for generally about three to twelve months. For our TDRs that accrue interest at the time the loan is restructured, it would be a rare exception to have charged-off any portion of the loan. As of June 30, 2022, we had $5.9 million of restructured loans that are in compliance with the modified terms and are not reported as past due or non-accrual in Table 9. Our Florida market contains $3.6 million and our Arkansas market contains $2.3 million of these restructured loans.

A loan modification that might not otherwise be considered may be granted resulting in classification as a TDR. These loans can involve loans remaining on non-accrual, moving to non-accrual, or continuing on an accrual status, depending on the individual facts and circumstances of the borrower. Generally, a non-accrual loan that is restructured remains on non-accrual for a period of nine months to demonstrate that the borrower can meet the restructured terms. However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can pay under the new terms and may result in the loan being returned to an accrual status after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan will remain in a non-accrual status.

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The majority of the Bank’s loan modifications relates to commercial lending and involves reducing the interest rate, changing from a principal and interest payment to interest-only, lengthening the amortization period, or a combination of some or all of the three. In addition, it is common for the Bank to seek additional collateral or guarantor support when modifying a loan. At June 30, 2022 and December 31, 2021, the amount of TDRs was $6.6 million and $7.5 million, respectively. As of June 30, 2022 and December 31, 2021, 88.9% and 85.7%, respectively, of all restructured loans were performing to the terms of the restructure.

Total foreclosed assets held for sale were $373,000 as of June 30, 2022, compared to $1.6 million as of December 31, 2021 for a decrease of $1.3 million. The foreclosed assets held for sale as of June 30, 2022 are comprised of $8,000 of assets located in Arkansas, $260,000 located in Florida, $105,000 located in Texas and zero from Alabama, SPF and Centennial CFG.

Table 10 shows the summary of foreclosed assets held for sale as of June 30, 2022 and December 31, 2021.

Table 10: Foreclosed Assets Held For Sale

	As of June 30, 2022		As of December 31, 2021
	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	49	$	536
Construction/land development	55		834
Residential real estate loans
Residential 1-4 family	269		260
Multifamily residential	—		—
Total foreclosed assets held for sale	$	373	$	1,630

A loan is considered impaired when it is probable that we will not receive all amounts due according to the contracted terms of the loans. Impaired loans include non-performing loans (loans past due 90 days or more and non-accrual loans), criticized and/or classified loans with a specific allocation, loans categorized as TDRs and certain other loans identified by management that are still performing (loans included in multiple categories are only included once). As of June 30, 2022 and December 31, 2021, impaired loans were $385.1 million and $331.5 million, respectively. The amortized cost balance for loans with a specific allocation increased from $284.0 million to $323.1 million, and the specific allocation for impaired loans increased by approximately $6.6 million for the period ended June 30, 2022 compared to the period ended December 31, 2021. The Company is continuing to monitor these impaired loans and will adjust the discount as necessary. As of June 30, 2022, our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets accounted for approximately $176.3 million, $145.0 million, $57.1 million, $813,000, $1.3 million and $4.7 million of the impaired loans, respectively.

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Past Due and Non-Accrual Loans

Table 11 shows the summary of non-accrual loans as of June 30, 2022 and December 31, 2021:

Table 11: Total Non-Accrual Loans

	As of June 30, 2022		As of December 31, 2021
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	14,247	$	11,923
Construction/land development	1,050		1,445
Agricultural	194		897
Residential real estate loans
Residential 1-4 family	17,210		16,198
Multifamily residential	156		156
Total real estate	32,857		30,619
Consumer	1,321		1,648
Commercial and industrial	8,698		13,875
Agricultural & other	1,294		1,016
Total non-accrual loans	$	44,170	$	47,158

If non-accrual loans had been accruing interest in accordance with the original terms of their respective agreements, interest income of approximately $672,000 and $795,000, respectively, would have been recorded for the three-month periods ended June 30, 2022 and 2021. If non-accrual loans had been accruing interest in accordance with the original terms of their respective agreements, interest income of approximately $1.3 million and $1.6 million, respectively, would have been recorded for the six month periods ended June 30, 2022 and 2021. The interest income recognized on non-accrual loans for the three and six months ended June 30, 2022 and 2021 was considered immaterial.

Table 12 shows the summary of accruing past due loans 90 days or more as of June 30, 2022 and December 31, 2021:

Table 12: Loans Accruing Past Due 90 Days or More

	As of June 30, 2022		As of December 31, 2021
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	10,712	$	2,225
Construction/land development	246		—
Agricultural	711		—
Residential real estate loans
Residential 1-4 family	2,378		701
Multifamily residential	—		—
Total real estate	14,047		2,926
Consumer	43		2
Commercial and industrial	2,342		107
Other	—		—
Total loans accruing past due 90 days or more	$	16,432	$	3,035

Our ratio of total loans accruing past due 90 days or more and non-accrual loans to total loans was 0.44% and 0.51% at June 30, 2022 and December 31, 2021, respectively.

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Allowance for Credit Losses

Overview. The allowance for credit losses on loans receivable is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

The Company uses the discounted cash flow (“DCF”) method to estimate expected losses for all of the Company’s loan pools. These pools are as follows: construction & land development; other commercial real estate; residential real estate; commercial & industrial; and consumer & other. The loan portfolio pools were selected in order to generally align with the loan categories specified in the quarterly call reports required to be filed with the Federal Financial Institutions Examination Council. For each of these loan pools, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers.

For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts to a historical loss rate over four quarters on a straight-line basis. Management leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, rental vacancy rate, housing price index and national retail sales index.

The combination of adjustments for credit expectations (default and loss) and time expectations prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (“NPV”). An allowance for credit loss is established for the difference between the instrument’s NPV and amortized cost basis.

The allowance for credit losses is measured based on call report segment as these types of loans exhibit similar risk characteristics. The allowance for credit losses for each segment is measured through the use of the discounted cash flow method. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless Management has a reasonable expectation at the reporting date that troubled debt restructuring will be executed with an individual borrower or

the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

Management qualitatively adjusts model results for risk factors ("Q-Factors") that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These Q-Factors and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions.

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Loans considered impaired, according to ASC 326, are loans for which, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. The aggregate amount of impairment of loans is utilized in evaluating the adequacy of the allowance for credit losses and amount of provisions thereto. Losses on impaired loans are charged against the allowance for credit losses when in the process of collection, it appears likely that such losses will be realized. The accrual of interest on impaired loans is discontinued when, in management’s opinion the collection of interest is doubtful or generally when loans are 90 days or more past due. When accrual of interest is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Loans are placed on non-accrual status when management believes that the borrower’s financial condition, after giving consideration to economic and business conditions and collection efforts, is such that collection of interest is doubtful, or generally when loans are 90 days or more past due. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Accrued interest related to non-accrual loans is generally charged against the allowance for credit losses when accrued in prior years and reversed from interest income if accrued in the current year. Interest income on non-accrual loans may be recognized to the extent cash payments are received, although the majority of payments received are usually applied to principal. Non-accrual loans are generally returned to accrual status when principal and interest payments are less than 90 days past due, the customer has made required payments for at least six months, and we reasonably expect to collect all principal and interest.

Acquisition Accounting and Acquired Loans. We account for our acquisitions under FASB ASC Topic 805, Business Combinations, which requires the use of the acquisition method of accounting. All identifiable assets acquired, including loans, are recorded at fair value. In accordance with ASC 326, the Company records both a discount and an allowance for credit losses on acquired loans. All purchased loans are recorded at fair value in accordance with the fair value methodology prescribed in FASB ASC Topic 820, Fair Value Measurements. The fair value estimates associated with the loans include estimates related to expected prepayments and the amount and timing of undiscounted expected principal, interest and other cash flows.

Purchased loans that have experienced more than insignificant credit deterioration since origination are PCD loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for impairment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Specific Allocations. As a general rule, if a specific allocation is warranted, it is the result of an analysis of a previously classified credit or relationship. Typically, when it becomes evident through the payment history or a financial statement review that a loan or relationship is no longer supported by the cash flows of the asset and/or borrower and has become collateral dependent, we will use appraisals or other collateral analysis to determine if collateral impairment has occurred. The amount or likelihood of loss on this credit may not yet be evident, so a charge-off would not be prudent. However, if the analysis indicates that an impairment has occurred, then a specific allocation will be determined for this loan. If our existing appraisal is outdated or the collateral has been subject to significant market changes, we will obtain a new appraisal for this impairment analysis. The majority of our impaired loans are collateral dependent at the present time, so third-party appraisals were used to determine the necessary impairment for these loans. Cash flow available to service debt was used for the other impaired loans. This analysis is performed each quarter in connection with the preparation of the analysis of the adequacy of the allowance for credit losses, and if necessary, adjustments are made to the specific allocation provided for a particular loan.

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For collateral dependent loans, we do not consider an appraisal outdated simply due to the passage of time. However, if an appraisal is older than 13 months and if market or other conditions have deteriorated and we believe that the current market value of the property is not within approximately 20% of the appraised value, we will consider the appraisal outdated and order either a new appraisal or an internal validation report for the impairment analysis. The recognition of any provision or related charge-off on a collateral dependent loan is either through annual credit analysis or, many times, when the relationship becomes delinquent. If the borrower is not current, we will update our credit and cash flow analysis to determine the borrower's repayment ability. If we determine this ability does not exist and it appears that the collection of the entire principal and interest is not likely, then the loan could be placed on non-accrual status. In any case, loans are classified as non-accrual no later than 105 days past due. If the loan requires a quarterly impairment analysis, this analysis is completed in conjunction with the completion of the analysis of the adequacy of the allowance for credit losses. Any exposure identified through the impairment analysis is shown as a specific reserve on the individual impairment. If it is determined that a new appraisal or internal validation report is required, it is ordered and will be taken into consideration during completion of the next impairment analysis.

In estimating the net realizable value of the collateral, management may deem it appropriate to discount the appraisal based on the applicable circumstances. In such case, the amount charged off may result in loan principal outstanding being below fair value as presented in the appraisal.

Between the receipt of the original appraisal and the updated appraisal, we monitor the loan's repayment history. If the loan is $3.0 million or greater or the total loan relationship is $5.0 million or greater, our policy requires an annual credit review. For these loans, our policy requires financial statements from the borrowers and guarantors at least annually. In addition, we calculate the global repayment ability of the borrower/guarantors at least annually on these loans.

As a general rule, when it becomes evident that the full principal and accrued interest of a loan may not be collected, or by law at 105 days past due, we will reflect that loan as non-performing. It will remain non-performing until it performs in a manner that it is reasonable to expect that we will collect the full principal and accrued interest.

When the amount or likelihood of a loss on a loan has been determined, a charge-off should be taken in the period it is determined. If a partial charge-off occurs, the quarterly impairment analysis will determine if the loan is still impaired, and thus continues to require a specific allocation.

The Company had $385.1 million and $331.5 million in collateral-dependent impaired loans for the periods ended June 30, 2022 and December 31, 2021, respectively.

Loans Collectively Evaluated for Impairment. Loans receivable collectively evaluated for impairment increased by approximately $4.04 billion from $9.54 billion at December 31, 2021 to $13.57 billion at June 30, 2022. The percentage of the allowance for credit losses allocated to loans receivable collectively evaluated for impairment to the total loans collectively evaluated for impairment was 1.74% and 1.94% at June 30, 2022 and December 31, 2021, respectively.

Charge-offs and Recoveries. Total charge-offs increased to $3.3 million for the three months ended June 30, 2022, compared to $3.0 million for the same period in 2021. Total charge-offs decreased to $5.6 million for the six months ended June 30, 2022, compared to $6.1 million for the same period in 2021. Total recoveries were $778,000 and $542,000 for the three months ended June 30, 2022 and 2021, respectively. Total recoveries were $1.1 million and $1.0 million for the six months ended June 30, 2022 and 2021, respectively. For the three months ended June 30, 2022, net charge-offs were $262,000 for Arkansas, $1.5 million for Florida, $724,000 for Texas, $35,000 for Alabama and zero for Centennial CFG, partially offset by net recoveries of $63,000 for SPF. These equal a net charge-off position of $2.5 million. For the six months ended June 30, 2022, net charge-offs were $530,000 for Arkansas, $2.7 million for Florida, $724,000 for Texas, $36,000 for Alabama, $395,000 for SPF and zero for Centennial CFG. These equal a net charge-off position of $4.4 million.

We have not charged off an amount less than what was determined to be the fair value of the collateral as presented in the appraisal, less estimated costs to sell (for collateral dependent loans), for any period presented. Loans partially charged-off are placed on non-accrual status until it is proven that the borrower's repayment ability with respect to the remaining principal balance can be reasonably assured. This is usually established over a period of 6-12 months of timely payment performance.

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Table 13 shows the allowance for credit losses, charge-offs and recoveries as of and for the three and six months ended June 30, 2022 and 2021.

Table 13: Analysis of Allowance for Credit Losses

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
	(Dollars in thousands)
Balance, beginning of year	$	234,768		$	242,932		$	236,714		$	245,473
Allowance for credit losses on PCD loans - Happy acquisition	16,816			—			16,816			—
Loans charged off
Real estate:
Commercial real estate loans:
Non-farm/non-residential	—			576			—			595
Construction/land development	—			—			—			—
Agricultural	—			42			—			42
Residential real estate loans:
Residential 1-4 family	39			97			289			323
Multifamily residential	—			—			—			—
Total real estate	39			715			289			960
Consumer	2,174			55			2,237			122
Commercial and industrial	—			1,931			1,416			4,210
Agricultural	—			—			—			—
Other	1,052			322			1,633			778
Total loans charged off	3,265			3,023			5,575			6,070
Recoveries of loans previously charged off
Real estate:
Commercial real estate loans:
Non-farm/non-residential	52			54			78			68
Construction/land development	302			17			317			39
Agricultural	—			—			—			—
Residential real estate loans:
Residential 1-4 family	23			104			49			166
Multifamily residential	—			—			—			—
Total real estate	377			175			444			273
Consumer	37			(14)			48			32
Commercial and industrial	221			226			330			302
Agricultural	—			—			—			—
Other	143			155			320			441
Total recoveries	778			542			1,142			1,048
Net loans charged off	2,487			2,481			4,433			5,022
Provision for credit loss - acquired loans	45,170			—			45,170			—
Balance, June 30	$	294,267		$	240,451		$	294,267		$	240,451
Net charge-offs to average loans receivable	0.07		%	0.09		%	0.08		%	0.09		%
Allowance for credit losses to total loans	2.11			2.36			2.11			2.36
Allowance for credit losses to net charge-offs	2,949.95			2,416.29			3,291.77			2,374.30

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Table 14 presents the allocation of allowance for credit losses as of June 30, 2022 and December 31, 2021.

Table 14: Allocation of Allowance for Credit Losses

	As of June 30, 2022				As of December 31, 2021
	Allowance Amount		% of loans(1)		Allowance Amount		% of loans(1)
	(Dollars in thousands)
Real estate:
Commercial real estate loans:
Non-farm/non- residential	$	113,645	36.6	%	$	86,910	39.5	%
Construction/land development	36,689		18.6		28,415		18.8
Agricultural residential real estate loans	1,550		2.4		308		1.3
Residential real estate loans:
Residential 1-4 family	47,343		12.3		45,364		13.0
Multifamily residential	3,803		2.8		3,094		2.9
Total real estate	203,030		72.7		164,091		75.5
Consumer	20,460		7.9		16,612		8.4
Commercial and industrial	66,894		15.7		52,910		14.1
Agricultural	1,415		2.3		152		0.4
Other	2,468		1.4		2,949		1.6
Total	$	294,267	100.0	%	$	236,714	100.0	%

(1)Percentage of loans in each category to total loans receivable.

Investment Securities

Our securities portfolio is the second largest component of earning assets and provides a significant source of revenue. Securities within the portfolio are classified as held-to-maturity, available-for-sale, or trading based on the intent and objective of the investment and the ability to hold to maturity. Fair values of securities are based on quoted market prices where available. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable securities. The estimated effective duration of our securities portfolio was 5.2 years as of June 30, 2022.

Securities held-to-maturity, which include any security for which we have the positive intent and ability to hold until maturity, are reported at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized/accreted to the call date to interest income using the constant effective yield method over the estimated life of the security. As of June 30, 2022, we had $1.37 billion of held-to-maturity securities. Of the $1.37 billion of held-to-maturity securities as of June 30, 2022, $1.09 billion, or 79.7%, is invested in obligations of state and political subdivisions and the other $277.7 million, or 20.3%, is invested in U.S. Treasury securities.

Securities available-for-sale are reported at fair value with unrealized holding gains and losses reported as a separate component of stockholders’ equity as other comprehensive (loss) income. Securities that may be sold in response to interest rate changes, changes in prepayment risk, the need to increase regulatory capital, and other similar factors are classified as available-for-sale. Available-for-sale securities were $3.79 billion and $3.12 billion as June 30, 2022 and December 31, 2021, respectively.

As of June 30, 2022, $1.98 billion, or 52.2%, of our available-for-sale securities were invested in mortgage-backed securities, compared to $1.54 billion, or 49.3%, of our available-for-sale securities as of December 31, 2021. To reduce our income tax burden, $934.5 million, or 24.6%, of our available-for-sale securities portfolio as of June 30, 2022, were primarily invested in tax-exempt obligations of state and political subdivisions, compared to $997.0 million, or 32.0%, of our available-for-sale securities as of December 31, 2021. We had $451.5 million, or 11.9%, invested in obligations of U.S. Government-sponsored enterprises as of June 30, 2022, compared to $433.0 million, or 13.9%, of our available-for-sale securities as of December 31, 2021. Also, we had approximately $427.3 million, or 11.3%, invested in other securities as of June 30, 2022, compared to $151.9 million, or 4.9% of our available-for-sale securities as of December 31, 2021.

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The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326, Measurement of Credit Losses on Financial Instruments. The Company first assesses whether it intends to sell or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities that do not meet this criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

The Company recorded a $2.0 million provision for credit losses on the held-to-maturity investment securities during the second quarter of 2022 as a result of the investment securities acquired as part of the Happy acquisition. Of the Company's held-to-maturity securities, $1.09 billion, or 79.7% are municipal securities. To estimate the necessary loss provision, the Company utilized historical default and recovery rates of the municipal bond sector and applied these rates using a pooling method. The remainder of investments classified as held-to-maturity are U.S. Treasury securities. Due to the inherent low risk in U.S. Treasury securities, no provision for credit loss was established on that portion of the portfolio.

At June 30, 2022, the Company determined that the allowance for credit losses of $842,000, resulting from economic uncertainty, was adequate for the available-for-sale investment portfolio, and the allowance for credit losses for the HTM portfolio resulting from the Happy acquisition was considered adequate. No additional provision for credit losses was considered necessary for the portfolio.

See Note 3 to the Condensed Notes to Consolidated Financial Statements for the carrying value and fair value of investment securities.

Deposits

Our deposits averaged $19.94 billion and $17.17 billion for the three and six months ended June 30, 2022, respectively. Our deposits averaged $13.77 billion and $13.40 billion for the three and six months ended June 30, 2021, respectively. Total deposits were $19.58 billion as of June 30, 2022, and $14.26 billion as of December 31, 2021. Deposits are our primary source of funds. We offer a variety of products designed to attract and retain deposit customers. Those products consist of checking accounts, regular savings deposits, NOW accounts, money market accounts and certificates of deposit. Deposits are gathered from individuals, partnerships and corporations in our market areas. In addition, we obtain deposits from state and local entities and, to a lesser extent, U.S. Government and other depository institutions.

Our policy also permits the acceptance of brokered deposits. From time to time, when appropriate in order to fund strong loan demand, we accept brokered time deposits, generally in denominations of less than $250,000, from a regional brokerage firm, and other national brokerage networks. We also participate in the One-Way Buy Insured Cash Sweep (“ICS”) service and similar services, which provide for one-way buy transactions among banks for the purpose of purchasing cost-effective floating-rate funding without collateralization or stock purchase requirements. Management believes these sources represent a reliable and cost-efficient alternative funding source for the Company. However, to the extent that our condition or reputation deteriorates, or to the extent that there are significant changes in market interest rates which we do not elect to match, we may experience an outflow of brokered deposits. In that event we would be required to obtain alternate sources for funding.

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Table 15 reflects the classification of the brokered deposits as of June 30, 2022 and December 31, 2021.

Table 15: Brokered Deposits

	June 30, 2022		December 31, 2021
	(In thousands)
Time Deposits	$	—	$	—
CDARS	—		—
Insured Cash Sweep and Other Transaction Accounts	626,929		625,704
Total Brokered Deposits	$	626,929	$	625,704

The interest rates paid are competitively priced for each particular deposit product and structured to meet our funding requirements. We will continue to manage interest expense through deposit pricing. We may allow higher rate deposits to run off during periods of limited loan demand. We believe that additional funds can be attracted, and deposit growth can be realized through deposit pricing if we experience increased loan demand or other liquidity needs.

The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the deposit and loan rates offered by financial institutions. In 2020, the Federal Reserve lowered the target rate to 0.00% to 0.25%. This remained in effect throughout all of 2021. On March 16, 2022, the target rate was increased to 0.25% to 0.50%. On May 4, 2022, the target rate was increased to 0.75% to 1.00%. On June 15, 2022, the target rate was increased to 1.50% to 1.75%. Presently, the Federal Reserve has indicated they are anticipating multiple rate increases for 2022.

Table 16 reflects the classification of the average deposits and the average rate paid on each deposit category, which are in excess of 10 percent of average total deposits, for the three and six months ended June 30, 2022 and 2021.

Table 16: Average Deposit Balances and Rates

	Three Months Ended June 30,
	2022				2021
	Average Amount		Average Rate Paid		Average Amount		Average Rate Paid
	(Dollars in thousands)
Non-interest-bearing transaction accounts	$	6,138,497	—	%	$	3,966,968	—	%
Interest-bearing transaction accounts	10,999,598		0.35		7,816,822		0.20
Savings deposits	1,633,014		0.07		867,904		0.06
Time deposits:
$100,000 or more	731,761		0.36		761,017		1.06
Other time deposits	439,099		0.27		362,270		0.51
Total	$	19,941,969	0.22	%	$	13,774,981	0.19	%

	Six Months Ended June 30,
	2022				2021
	Average Amount		Average Rate Paid		Average Amount		Average Rate Paid
	(Dollars in thousands)
Non-interest-bearing transaction accounts	$	5,152,673	—	%	$	3,724,854	—	%
Interest-bearing transaction accounts	9,701,529		0.27		7,682,933		0.22
Savings deposits	1,305,703		0.07		829,781		0.06
Time deposits:
$100,000 or more	625,901		0.46		797,619		1.12
Other time deposits	387,699		0.29		368,502		0.56
Total	$	17,173,505	0.18	%	$	13,403,689	0.21	%

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Securities Sold Under Agreements to Repurchase

We enter into short-term purchases of securities under agreements to resell (resale agreements) and sales of securities under agreements to repurchase (repurchase agreements) of substantially identical securities. The amounts advanced under resale agreements and the amounts borrowed under repurchase agreements are carried on the balance sheet at the amount advanced. Interest incurred on repurchase agreements is reported as interest expense. Securities sold under agreements to repurchase decreased $22.3 million, or 15.8%, from $140.9 million as of December 31, 2021 to $118.6 million as of June 30, 2022.

FHLB and Other Borrowed Funds

The Company’s FHLB borrowed funds, which are secured by our loan portfolio, were $400.0 million at both June 30, 2022 and December 31, 2021. The Company had no other borrowed funds as of June 30, 2022 or December 31, 2021. At June 30, 2022 and December 31, 2021, all of the outstanding balances were classified as long-term advances. The FHLB advances mature in 2033 with fixed interest rates ranging from 1.76% to 2.26%. Expected maturities could differ from contractual maturities because FHLB may have the right to call or the Company may have the right to prepay certain obligations.

Subordinated Debentures

Subordinated debentures, which consist of subordinated debt securities and guaranteed payments on trust preferred securities, were $458.5 million and $371.1 million as of June 30, 2022 and December 31, 2021, respectively.

The Company holds trust preferred securities with a face amount of $17.6 million which are currently callable without penalty based on the terms of the specific agreements. The trust preferred securities are tax-advantaged issues that previously qualified for Tier 1 capital treatment subject to certain limitations. However, now that the Company has exceeded $15 billion in assets and has completed the acquisition of Happy Bancshares, the Tier 1 treatment of the Company’s outstanding trust preferred securities has been eliminated, and these securities are now treated as Tier 2 capital. Distributions on these securities are included in interest expense. Each of the trusts is a statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in the Company’s subordinated debentures, the sole asset of each trust. The trust preferred securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the subordinated debentures held by the trust. The Company wholly owns the common securities of each trust. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related subordinated debentures. The Company’s obligations under the subordinated securities and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each respective trust’s obligations under the trust securities issued by each respective trust. The Company has received approval from the Federal Reserve to redeem the trust preferred securities, and is in the process of redeeming all of its trust preferred securities.

On April 1, 2022, the Company acquired $23.2 million in trust preferred securities from Happy which were currently callable without penalty based on the terms of the specific agreements. During the quarter, $10.7 million of these trust preferred securities were paid off without penalty. As of June 30, 2022, the Company held a face amount of $12.5 million in trust preferred securities acquired from Happy.

During the second quarter, the Company chose to redeem an additional $68.1 million in trust preferred securities held prior to the acquisition of Happy. As of June 30, 2022, the Company's remaining balance of trust preferred securities which were held prior to the acquisition of Happy was $5.1 million.

On April 1, 2022, the Company acquired $140.0 million of subordinated notes from Happy. These notes have a maturity date of July 31, 2030 and carry a fixed rate of 5.500% for the first five years. Thereafter, the notes bear interest at 3-month Secured Overnight Funding Rate (SOFR) plus 5.345% resetting quarterly. Interest payments are due semi-annually and the notes include a right of prepayment without penalty on or after July 31, 2025.

On January 18, 2022, the Company completed an underwritten public offering of $300.0 million in aggregate principal amount of its 3.125% Fixed-to-Floating Rate Subordinated Notes due 2032 (the “2032 Notes”) for net proceeds, after underwriting discounts and issuance costs, of approximately $296.4 million. The 2032 Notes are unsecured, subordinated debt obligations of the Company and will mature on January 30, 2032. From and including the date of issuance to, but excluding January 30, 2027 or the date of earlier redemption, the 2032 Notes will bear interest at an initial rate of 3.125% per annum, payable in arrears on January 30 and July 30 of each year. From and including January 30, 2027 to, but excluding the maturity date or earlier redemption, the 2032 Notes will bear interest at a floating rate equal to the Benchmark rate (which is expected to be Three-Month Term SOFR), each as defined in and subject to the provisions of the applicable supplemental indenture for the 2032 Notes, plus 182 basis points, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, commencing on April 30, 2027.

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The Company may, beginning with the interest payment date of January 30, 2027, and on any interest payment date thereafter, redeem the 2032 Notes, in whole or in part, subject to prior approval of the Federal Reserve if then required, at a redemption price equal to 100% of the principal amount of the 2032 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. The Company may also redeem the 2032 Notes at any time, including prior to January 30, 2027, at the Company’s option, in whole but not in part, subject to prior approval of the Federal Reserve if then required, if certain events occur that could impact the Company’s ability to deduct interest payable on the 2032 Notes for U.S. federal income tax purposes or preclude the 2032 Notes from being recognized as Tier 2 capital for regulatory capital purposes, or if the Company is required to register as an investment company under the Investment Company Act of 1940, as amended. In each case, the redemption would be at a redemption price equal to 100% of the principal amount of the 2032 Notes plus any accrued and unpaid interest to, but excluding, the redemption date.

On April 3, 2017, the Company completed an underwritten public offering of $300.0 million in aggregate principal amount of its 5.625% Fixed-to-Floating Rate Subordinated Notes due 2027 (the “2027 Notes”) for net proceeds, after underwriting discounts and issuance costs, of approximately $297.0 million. The 2027 Notes are unsecured, subordinated debt obligations and mature on April 15, 2027. From and including the date of issuance to, but excluding April 15, 2022, the 2027 Notes bear interest at an initial rate of 5.625% per annum. From and including April 15, 2022 to, but excluding the maturity date or earlier redemption, the 2027 Notes bear interest at a floating rate equal to three-month LIBOR as calculated on each applicable date of determination plus a spread of 3.575%; provided, however, that in the event three-month LIBOR is less than zero, then three-month LIBOR shall be deemed to be zero.

The Company, beginning with the interest payment date of April 15, 2022, and on any interest payment date thereafter, was permitted to redeem the 2027 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2027 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. On April 15, 2022, the Company completed the payoff of the 2027 Notes in aggregate principal amount of $300.0 million. Each 2027 Note was redeemed pursuant to the terms of the Subordinated Indenture, as supplemented by the First Supplemental Indenture, each dated as of April 3, 2017, between the Company and U.S. Bank Trust Company, National Association, the Trustee for the 2027 Notes, at the redemption price of 100% of its principal amount, plus accrued and unpaid interest to, but excluding, the Redemption Date.

Stockholders’ Equity

Stockholders’ equity increased $732.8 million to $3.50 billion as of June 30, 2022, compared to $2.77 billion as of December 31, 2021. The $732.8 million increase in stockholders’ equity is primarily associated with the $961.3 million in common stock issued to Happy shareholders for the acquisition of Happy on April 1, 2022 and the $80.9 million in net income for the six months ended June 30, 2022, partially offset by the $226.4 million in other comprehensive loss, the $61.0 million of shareholder dividends paid and stock repurchases of $26.6 million in 2022. As of June 30, 2022 and December 31, 2021, our equity to asset ratio was 14.43% and 15.32%, respectively. Book value per share was $17.04 as of June 30, 2022, compared to $16.90 as of December 31, 2021, a 3.5% annualized increase.

Common Stock Cash Dividends. We declared cash dividends on our common stock of $0.165 and $0.14 per share for the three months ended June 30, 2022 and 2021, respectively. The common stock dividend payout ratio for the three months ended June 30, 2022 and 2021 was 212.4% and 29.2%, respectively. The common stock dividend payout ratio for the six months ended June 30, 2022 and 2021 was 75.4% and 27.1%, respectively. On July 22, 2022, the Board of Directors declared a regular $0.165 per share quarterly cash dividend payable September 7, 2022, to shareholders of record August 17, 2022.

Stock Repurchase Program. On January 22, 2021, the Company’s Board of Directors authorized the repurchase of up to an additional 20,000,000 shares of its common stock under the previously approved stock repurchase program. We repurchased a total of 1,212,732 shares with a weighted-average stock price of $21.89 per share during the first six months of 2022. The remaining balance available for repurchase was 20,877,933 shares at June 30, 2022.

Liquidity and Capital Adequacy Requirements

Risk-Based Capital. We, as well as our bank subsidiary, are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and other discretionary actions by regulators that, if enforced, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. Our capital amounts and classifications are also subject to qualitative judgments by the regulators as to components, risk weightings and other factors.

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In July 2013, the Federal Reserve Board and the other federal bank regulatory agencies issued a final rule to revise their risk-based and leverage capital requirements and their method for calculating risk-weighted assets to make them consistent with the agreements that were reached by the Basel Committee on Banking Supervision in “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems” and certain provisions of the Dodd-Frank Act (“Basel III”). Basel III applies to all depository institutions, bank holding companies with total consolidated assets of $500 million or more, and savings and loan holding companies. Basel III became effective for the Company and its bank subsidiary on January 1, 2015. Basel III limits a banking organization’s capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” of 2.5% of common equity Tier 1 capital to risk-weighted assets, which is in addition to the amount necessary to meet its minimum risk-based capital requirements. The capital conservation buffer requirement began being phased in beginning January 1, 2016 at the 0.625% level and increased by 0.625% on each subsequent January 1, until it reached 2.5% on January 1, 2019 when the phase-in period ended, and the full capital conservation buffer requirement became effective.

Basel III permanently grandfathers trust preferred securities and other non-qualifying capital instruments that were issued and outstanding as of May 19, 2010 in the Tier 1 capital of bank holding companies with total consolidated assets of less than $15 billion as of December 31, 2009. The rule phases out of Tier 1 capital these non-qualifying capital instruments issued before May 19, 2010 by all other bank holding companies. However, now that the Company has exceeded $15 billion in assets and has completed the acquisition of Happy Bancshares, the Tier 1 treatment of the Company’s outstanding trust preferred securities has been eliminated, and these securities are now treated as Tier 2 capital.

Basel III also amended the prompt corrective action rules to incorporate a “common equity Tier 1 capital” requirement and to raise the capital requirements for certain capital categories. In order to be adequately capitalized for purposes of the prompt corrective action rules, a banking organization will be required to have at least a 4.5% “common equity Tier 1 risk-based capital” ratio, a 4% “Tier 1 leverage capital” ratio, a 6% “Tier 1 risk-based capital” ratio and an 8% “total risk-based capital” ratio.

Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. Management believes that, as of June 30, 2022 and December 31, 2021, we met all regulatory capital adequacy requirements to which we were subject.

On January 18, 2022, the Company completed an underwritten public offering of the 2032 Notes in aggregate principal amount of $300.0 million. The 2032 Notes are unsecured, subordinated debt obligations of the Company and will mature on January 30, 2032. The Company may, beginning with the interest payment date of January 30, 2027, and on any interest payment date thereafter, redeem the 2032 Notes, in whole or in part, subject to prior approval of the Federal Reserve if then required, at a redemption price equal to 100% of the principal amount of the 2032 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. The Company may also redeem the 2032 Notes at any time, including prior to January 30, 2027, at the Company’s option, in whole but not in part, subject to prior approval of the Federal Reserve if then required, if certain events occur that could impact the Company’s ability to deduct interest payable on the 2032 Notes for U.S. federal income tax purposes or preclude the 2032 Notes from being recognized as Tier 2 capital for regulatory capital purposes, or if the Company is required to register as an investment company under the Investment Company Act of 1940, as amended. In each case, the redemption would be at a redemption price equal to 100% of the principal amount of the 2032 Notes plus any accrued and unpaid interest to, but excluding, the redemption date.

On April 1, 2022, the Company acquired $140.0 million of subordinated notes from Happy. These notes have a maturity date of July 31, 2030 and carry a fixed rate of 5.500% for the first five years. Thereafter, the notes bear interest at 3-month Secured Overnight Funding Rate (SOFR) plus 5.345% resetting quarterly. Interest payments are due semi-annually and the notes include a right of prepayment without penalty on or after July 31, 2025.

On April 3, 2017, the Company completed an underwritten public offering of the 2027 Notes in aggregate principal amount of $300.0 million. The 2027 Notes are unsecured, subordinated debt obligations and mature on April 15, 2027. On April 15, 2022, the Company completed the payoff of the 2027 Notes in aggregate principal amount of $300.0 million. Each 2027 Note was redeemed pursuant to the terms of the Subordinated Indenture, as supplemented by the First Supplemental Indenture, each dated as of April 3, 2017, between the Company and U.S. Bank Trust Company, National Association, the Trustee for the 2027 Notes, at the redemption price of 100% of its principal amount, plus accrued and unpaid interest to, but excluding, the Redemption Date.

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On December 21, 2018, the federal banking agencies issued a joint final rule to revise their regulatory capital rules to permit bank holding companies and banks to phase-in, for regulatory capital purposes, the day-one impact of the new CECL accounting rule on retained earnings over a period of three years. As part of its response to the impact of COVID-19, on March 27, 2020, the federal banking regulatory agencies issued an interim final rule that provided the option to temporarily delay certain effects of CECL on regulatory capital for two years, followed by a three-year transition period. The interim final rule allows bank holding companies and banks to delay for two years 100% of the day-one impact of adopting CECL and 25% of the cumulative change in the reported allowance for credit losses since adopting CECL. The Company has elected to adopt the interim final rule, which is reflected in the risk-based capital ratios presented below.

Table 17 presents our risk-based capital ratios on a consolidated basis as of June 30, 2022 and December 31, 2021.

Table 17: Risk-Based Capital

	As of June 30, 2022			As of December 31, 2021
	(Dollars in thousands)
Tier 1 capital
Stockholders’ equity	$	3,498,565		$	2,765,721
ASC 326 transitional period adjustment	24,369			55,143
Goodwill and core deposit intangibles, net	(1,461,362)			(997,605)
Unrealized (gain) loss on available-for-sale securities	215,905			(10,462)
Total common equity Tier 1 capital	2,277,477			1,812,797
Qualifying trust preferred securities	17,630			71,270
Total Tier 1 capital	2,295,107			1,884,067
Tier 2 capital
Allowance for credit losses	294,267			236,714
ASC 326 transitional period adjustment	(24,369)			(55,143)
Disallowed allowance for credit losses (limited to 1.25% of risk weighted assets)	(46,178)			(33,514)
Qualifying allowance for credit losses	223,720			148,057
Qualifying subordinated notes	440,825			299,824
Total Tier 2 capital	664,545			447,881
Total risk-based capital	$	2,959,652		$	2,331,948
Average total assets for leverage ratio	$	23,482,743		$	16,960,683
Risk weighted assets	$	17,817,635		$	11,793,539
Ratios at end of period
Common equity Tier 1 capital	12.78		%	15.37		%
Leverage ratio	9.77			11.11
Tier 1 risk-based capital	12.88			15.98
Total risk-based capital	16.61			19.77
Minimum guidelines – Basel III
Common equity Tier 1 capital	7.00		%	7.00		%
Leverage ratio	4.00			4.00
Tier 1 risk-based capital	8.50			8.50
Total risk-based capital	10.50			10.50
Well-capitalized guidelines
Common equity Tier 1 capital	6.50		%	6.50		%
Leverage ratio	5.00			5.00
Tier 1 risk-based capital	8.00			8.00
Total risk-based capital	10.00			10.00

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As of the most recent notification from regulatory agencies, our bank subsidiary was “well-capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized,” we, as well as our banking subsidiary, must maintain minimum common equity Tier 1 capital, leverage, Tier 1 risk-based capital, and total risk-based capital ratios as set forth in the table. There are no conditions or events since that notification that we believe have changed the bank subsidiary’s category.

Non-GAAP Financial Measurements

Our accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, this report contains financial information determined by methods other than in accordance with GAAP, including earnings, as adjusted; diluted earnings per common share, as adjusted; tangible book value per share; return on average assets, excluding intangible amortization; return on average assets, as adjusted; return on average common equity, as adjusted; return on average tangible equity, excluding intangible amortization; return on average tangible equity, as adjusted; tangible equity to tangible assets; and efficiency ratio, as adjusted.

We believe these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding our performance. We believe investors benefit from referring to these non-GAAP measures and ratios in assessing our operating results and related trends, and when planning and forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP.

The tables below present non-GAAP reconciliations of earnings, as adjusted, and diluted earnings per share, as adjusted, as well as the non-GAAP computations of tangible book value per share; return on average assets, excluding intangible amortization; return on average assets, as adjusted; return on average common equity, as adjusted; return on average tangible equity excluding intangible amortization; return on average tangible equity, as adjusted; tangible equity to tangible assets; and efficiency ratio, as adjusted. The items used in these calculations are included in financial results presented in accordance with GAAP.

Earnings, as adjusted, and diluted earnings per common share, as adjusted, are meaningful non-GAAP financial measures for management, as they exclude certain items such as merger expenses and/or certain gains and losses. Management believes the exclusion of these items in expressing earnings provides a meaningful foundation for period-to-period and company-to-company comparisons, which management believes will aid both investors and analysts in analyzing our financial measures and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of our business, because management does not consider these items to be relevant to ongoing financial performance.

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In Table 18 below, we have provided a reconciliation of the non-GAAP calculation of the financial measure for the periods indicated.

Table 18: Earnings, As Adjusted

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(Dollars in thousands)
GAAP net income available to common shareholders (A)	$	15,978	$	79,070	$	80,870	$	170,672
Pre-tax adjustments:
Merger and acquisition expenses	48,731		—		49,594		—
Initial provision for credit losses - acquisition	58,585		—		58,585		—
Fair value adjustment for marketable securities	1,801		(1,250)		(324)		(7,032)
Special dividend from equity investment	(1,434)		(2,200)		(1,434)		(10,273)
TRUPS redemption fees	2,081		—		2,081		—
Recoveries on historic losses	(2,353)		—		(5,641)		(5,107)
Gain on securities	—		—		—		(219)
Total pre-tax adjustments	107,411		(3,450)		102,861		(22,631)
Tax-effect of adjustments(1)	26,396		(888)		25,176		(5,825)
Total adjustments after-tax (B)	81,015		(2,562)		77,685		(16,806)
Earnings, as adjusted (C)	$	96,993	$	76,508	$	158,555	$	153,866
Average diluted shares outstanding (D)	206,015		165,226		185,223		165,314
GAAP diluted earnings per share: A/D	$	0.08	$	0.48	$	0.44	$	1.03
Adjustments after-tax: B/D	0.39		(0.02)		0.42		(0.10)
Diluted earnings per common share excluding adjustments: C/D	$	0.47	$	0.46	$	0.86	$	0.93

(1) Blended statutory rate of 25.1475% for 2022 and 25.74% for 2021

We had $1.46 billion, $998.1 million, and $1.00 billion total goodwill, core deposit intangibles and other intangible assets as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively. Because of our level of intangible assets and related amortization expenses, management believes tangible book value per share, return on average assets excluding intangible amortization, return on average tangible equity, return on average tangible equity excluding intangible amortization, and tangible equity to tangible assets are useful in evaluating our company. Management also believes return on average assets, as adjusted, return on average equity, as adjusted, and return on average tangible equity, as adjusted, are meaningful non-GAAP financial measures, as they exclude items such as certain non-interest income and expenses that management believes are not indicative of our primary business operating results. These calculations, which are similar to the GAAP calculations of book value per share, return on average assets, return on average equity, and equity to assets, are presented in Tables 19 through 22, respectively.

Table 19: Tangible Book Value Per Share

	As of June 30, 2022		As of December 31, 2021
	(In thousands, except per share data)
Book value per share: A/B	$	17.04	$	16.90
Tangible book value per share: (A-C-D)/B	9.92		10.80
(A) Total equity	$	3,498,565	$	2,765,721
(B) Shares outstanding	205,291		163,699
(C) Goodwill	1,398,400		973,025
(D) Core deposit and other intangibles	63,410		25,045

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Table 20: Return on Average Assets

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
	(Dollars in thousands)
Return on average assets: A/D	0.26		%	1.81		%	0.75		%	2.01		%
Return on average assets excluding intangible amortization: (A+B)/(D-E)	0.31			1.95			0.83			2.16
Return on average assets, as adjusted: (A+C)/D	1.57			1.75			1.48			1.81
(A) Net income	$	15,978		$	79,070		$	80,870		$	170,672
Intangible amortization after-tax	1,854			1,055			2,903			2,110
(B) Earnings excluding intangible amortization	$	17,832		$	80,125		$	83,773		$	172,782
(C) Adjustments after-tax	$	81,015		$	(2,562)		$	77,685		$	(16,806)
(D) Average assets	24,788,365			17,491,359			21,608,387			17,107,259
(E) Average goodwill, core deposits and other intangible assets	1,423,466			1,001,598			1,211,580			1,002,301

Table 21: Return on Average Equity

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
	(Dollars in thousands)
Return on average equity: A/D	1.78		%	11.92		%	5.14		%	13.02		%
Return on average common equity, as adjusted: (A+C)/D	10.83			11.54			10.08			11.74
Return on average tangible equity excluding intangible amortization: B/(D-E)	3.30			19.38			8.62			21.24
Return on average tangible common equity, as adjusted: (A+C)/(D-E)	17.94			18.50			16.31			18.91
(A) Net income	$	15,978		$	79,070		$	80,870		$	170,672
(B) Earnings excluding intangible amortization	17,832			80,125			83,773			172,782
(C) Adjustments after-tax	81,015			(2,562)			77,685			(16,806)
(D) Average equity	3,591,758			2,660,147			3,172,200			2,642,978
(E) Average goodwill, core deposits and other intangible assets	1,423,466			1,001,598			1,211,580			1,002,301

Table 22: Tangible Equity to Tangible Assets

	As of June 30, 2022			As of December 31, 2021
	(Dollars in thousands)
Equity to assets: B/A	14.43		%	15.32		%
Tangible equity to tangible assets: (B-C-D)/(A-C-D)	8.94			10.36
(A) Total assets	$	24,253,168		$	18,052,138
(B) Total equity	3,498,565			2,765,721
(C) Goodwill	1,398,400			973,025
(D) Core deposit and other intangibles	63,410			25,045

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The efficiency ratio is a standard measure used in the banking industry and is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income. The efficiency ratio, as adjusted, is a meaningful non-GAAP measure for management, as it excludes certain items and is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income excluding items such as merger expenses and/or certain gains, losses and other non-interest income and expenses. In Table 23 below, we have provided a reconciliation of the non-GAAP calculation of the financial measure for the periods indicated.

Table 23: Efficiency Ratio, As Adjusted

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
	(Dollars in thousands)
Net interest income (A)	$	198,758		$	141,252		$	329,906		$	289,340
Non-interest income (B)	44,581			31,120			75,250			76,396
Non-interest expense (C)	165,482			72,982			242,378			145,848
FTE Adjustment (D)	2,471			1,774			4,209			3,595
Amortization of intangibles (E)	2,477			1,421			3,898			2,842
Adjustments:
Non-interest income:
Fair value adjustment for marketable securities	$	(1,801)		$	1,250		$	324		$	7,032
Special dividend from equity investment	1,434			2,200			1,434			10,273
Gain on OREO, net	9			619			487			1,020
Gain (loss) on branches, equipment and other assets, net	2			(23)			18			(52)
Gain on securities, net	—			—			—			219
Recoveries on historic losses	2,353			—			5,641			5,107
Total non-interest income adjustments (F)	$	1,997		$	4,046		$	7,904		$	23,599
Non-interest expense:
Merger and acquisition expenses	48,731			—			49,594			—
Total non-core non-interest expense (G)	$	50,812		$	—		$	51,675		$	—
Efficiency ratio (reported): ((C-E)/(A+B+D))	66.31		%	41.09		%	58.26		%	38.72		%
Efficiency ratio, as adjusted (non-GAAP): ((C-E-G)/(A+B+D-F))	46.02			42.07			46.53			41.36

Recently Issued Accounting Pronouncements

See Note 21 to the Condensed Notes to Consolidated Financial Statements for a discussion of certain recently issued and recently adopted accounting pronouncements.

Item 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Liquidity and Market Risk Management

Asset/Liability Management. Our management actively measures and manages interest rate risk. The asset/liability committees of the boards of directors of our holding company and bank subsidiary are also responsible for approving our asset/liability management policies, overseeing the formulation and implementation of strategies to improve balance sheet positioning and earnings, and reviewing our interest rate sensitivity position.

Our objective is to manage liquidity in a way that ensures cash flow requirements of depositors and borrowers are met in a timely and orderly fashion while ensuring the reliance on various funding sources does not become so heavily weighted to any one source that it causes undue risk to the bank. Our liquidity sources are prioritized based on availability and ease of activation. Our current liquidity condition is a primary driver in determining our funding needs and is a key component of our asset liability management.

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Various sources of liquidity are available to meet the cash flow needs of depositors and borrowers. Our principal source of funds is core deposits, including checking, savings, money market accounts and certificates of deposit. We may also from time to time obtain wholesale funding through brokered deposits. Secondary sources of funding include advances from the Federal Home Loan Bank of Dallas, the Federal Reserve Bank Discount Window and other borrowings, such as through correspondent banking relationships. These secondary sources enable us to borrow funds at rates and terms which, at times, are more beneficial to us. Additionally, as needed, we can liquidate or utilize our available for sale investment portfolio as collateral to provide funds for an intermediate source of liquidity.

Interest Rate Sensitivity. Our primary business is banking and the resulting earnings, primarily net interest income, are susceptible to changes in market interest rates. It is management’s goal to maximize net interest income within acceptable levels of interest rate and liquidity risks.

A key element in the financial performance of financial institutions is the level and type of interest rate risk assumed. The single most significant measure of interest rate risk is the relationship of the repricing periods of earning assets and interest-bearing liabilities. The more closely the repricing periods are correlated, the less interest rate risk we assume. We use net interest income simulation modeling and economic value of equity as the primary methods in analyzing and managing interest rate risk.

One of the tools that our management uses to measure short-term interest rate risk is a net interest income simulation model. This analysis calculates the difference between net interest income forecasted using base market rates and using a rising and a falling interest rate scenario. The income simulation model includes various assumptions regarding the re-pricing relationships for each of our products. Many of our assets are floating rate loans, which are assumed to re-price immediately, and proportional to the change in market rates, depending on their contracted index. Some loans and investments include the opportunity of prepayment (embedded options), and accordingly, the simulation model uses indexes to estimate these prepayments and reinvest their proceeds at current yields. Our non-term deposit products re-price overnight in the model while we project certain other deposits by product type to have stable balances based on our deposit history. This accounts for the portion of our portfolio that moves more slowly than market rates and changes at our discretion.

This analysis indicates the impact of changes in net interest income for the given set of rate changes and assumptions. It assumes the balance sheet remains static and that its structure does not change over the course of the year. It does not account for all factors that impact this analysis, including changes by management to mitigate the impact of interest rate changes or secondary impacts such as changes to our credit risk profile as interest rates change.

Furthermore, loan prepayment rate estimates and spread relationships change regularly. Interest rate changes create changes in actual loan prepayment rates that will differ from the market estimates incorporated in this analysis. Changes that vary significantly from the assumptions may have significant effects on our net interest income.

For the rising and falling interest rate scenarios, the base market interest rate forecast was increased and decreased over twelve months by 200 and 100 basis points, respectively. At June 30, 2022, our net interest margin exposure related to these hypothetical changes in market interest rates was within the current guidelines established by us.

Table 24 presents our sensitivity to net interest income as of June 30, 2022.

Table 24: Sensitivity of Net Interest Income

Interest Rate Scenario	Percentage Change from Base
Up 200 basis points	12.10	%
Up 100 basis points	6.20
Down 100 basis points	(5.90)
Down 200 basis points	(9.60)

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Item 4: CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls

Based on their evaluation as of the end of the period covered by this Quarterly Report on Form 10-Q, the Chief Executive Officer and Chief Financial Officer have concluded that the disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. Additionally, our disclosure controls and procedures were also effective in ensuring that information required to be disclosed in our Exchange Act report is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting

On April 1, 2022, we completed our acquisition of Happy Bancshares, Inc. ("Happy"), and as a result, we extended our oversight and monitoring processes that support our internal control over financial reporting during the second quarter of 2022, to include the operations of Happy. Otherwise, there were no changes in the Company’s internal controls over financial reporting during the quarter ended June 30, 2022, which have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II: OTHER INFORMATION

Item 1: Legal Proceedings

There are no material pending legal proceedings, other than ordinary routine litigation incidental to its business, to which the Company or its subsidiaries are a party or of which any of their property is the subject.

Item 1A: Risk Factors

There were no material changes from the risk factors set forth in Part I, Item 1A, “Risk Factors,” of our Form 10-K for the year ended December 31, 2021. See the discussion of our risk factors in the Form 10-K, as filed with the SEC. The risks described are not the only risks facing the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds

The following table sets forth information with respect to purchases made by or on behalf of the Company of shares of the Company’s common stock during the periods indicated:

Period	Number of Shares Purchased	Average Price Paid Per Share Purchased		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs(1)
April 1 through April 30, 2022	572,732	$	22.22	572,732	21,337,933
May 1 through May 31, 2022	180,000	21.55		180,000	21,157,933
June 1 through June 30, 2022	280,000	20.92		280,000	20,877,933
Total	1,032,732			1,032,732

(1)The above described stock repurchase program has no expiration date.

Item 3: Defaults Upon Senior Securities

Not applicable.

Item 4: Mine Safety Disclosures

Not applicable.

Item 5: Other Information

Not applicable.

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Item 6: Exhibits

Exhibit No.	Description of Exhibit
2.1	Agreement and Plan of Merger, dated as of September 15, 2021, by and among Home BancShares, Inc., Centennial Bank, Happy Bancshares, Inc., and Happy State Bank (incorporated by reference to Exhibit 2.1 of Home BancShares’s Current Report on Form 8-K filed on September 15, 2021)**
2.2	Amendment and Joinder Agreement, dated as of October 18, 2021, by and among Home Bancshares, Inc., Centennial Bank, Happy Bancshares, Inc., Happy State Bank and HOMB Acquisition Sub III, Inc. (incorporated by reference to Appendix A of Home BancShares’s registration statement on Form S-4 (File No. 333-260446)), as amended)
2.3	Second Amendment to Agreement and Plan of Merger, dated as of November 8, 2021, by and among Home BancShares, Inc., Centennial Bank, HOMB Acquisition Sub III, Inc., Happy Bancshares, Inc. and Happy State Bank (incorporated by reference to Appendix A of Home BancShares’s registration statement on Form S-4 (File No. 333-260446), as amended)
3.1	Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)
3.2	Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.2 of Home BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)
3.3	Second Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.3 of Home BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)
3.4	Third Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.4 of Home BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)
3.5	Fourth Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, filed on August 8, 2007)
3.6	Fifth Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 4.6 of Home BancShares’s registration statement on Form S-3 (File No. 333-157165))
3.7	Certificate of Designations of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, filed with the Secretary of State of the State of Arkansas on January 14, 2009 (incorporated by reference to Exhibit 3.1 of Home BancShares’s Current Report on Form 8-K, filed on January 21, 2009)
3.8	Seventh Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s Current Report on Form 8-K filed on April 19, 2013)
3.9	Eighth Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s Current Report on Form 8-K filed on April 22, 2016)
3.10	Ninth Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s Current Report on Form 8-K filed on April 23, 2019)
3.11	Tenth Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 4.11 of Home BancShares’s registration statement on Form S-8 (File No. 333-264409))
3.12	Amended and Restated Bylaws of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s Current Report on Form 8-K filed on January 28, 2021)
3.13	Amendment to the Amended and Restated Bylaws of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s Current Report on Form 8-K filed on April 22, 2022)
4.1	Specimen Stock Certificate representing Home BancShares, Inc. Common Stock (incorporated by reference to Exhibit 4.12 of the Company’s registration statement on Form S-3ASR (File No. 333-261495))

97

4.2	Instruments defining the rights of security holders including indentures. Home BancShares hereby agrees to furnish to the SEC upon request copies of instruments defining the rights of holders of long-term debt of Home BancShares and its consolidated subsidiaries. No issuance of debt exceeds ten percent of the assets of Home BancShares and its subsidiaries on a consolidated basis.
10.1	Employment Agreement by and between Mikel Williamson and Centennial Bank, effective April 1, 2022.***
15	Awareness of Independent Registered Public Accounting Firm*
31.1	CEO Certification Pursuant Rule 13a-14(a)/15d-14(a)*
31.2	CFO Certification Pursuant Rule 13a-14(a)/15d-14(a)*
32.1	CEO Certification Pursuant 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes – Oxley Act of 2002*
32.2	CFO Certification Pursuant 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes – Oxley Act of 2002*
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.*
101.SCH	Inline XBRL Taxonomy Extension Schema Document*
101.CAL	InlineXBRL Taxonomy Extension Calculation Linkbase Document*
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document*
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document*
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document*
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

*    Filed herewith

**    The disclosure schedules referenced in the Agreement and Plan of Merger have been omitted pursuant to Item 601(a)(5) of SEC Regulation S-K. The Company hereby agrees to furnish supplementally a copy of any omitted disclosure schedule to the SEC upon request.

*** Filed herewith. Portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv) of SEC Regulation S-K. The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon request.

98

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HOME BANCSHARES, INC.

(Registrant)

Date:	August 9, 2022	/s/ John W. Allison
		John W. Allison, Chairman and Chief Executive Officer
Date:	August 9, 2022	/s/ Brian S. Davis
		Brian S. Davis, Chief Financial Officer
Date:	August 9, 2022	/s/ Jennifer C. Floyd
		Jennifer C. Floyd, Chief Accounting Officer

99

EX-10.1

Exhibit 10.1

Certain identified information has been redacted from this exhibit because it is both (i) not material and (ii) a type that the registrant treats as private or confidential. Information that has been omitted has been identified in this document with a placeholder identified by the mark “[***].”

EMPLOYMENT AGREEMENT

This Employment Agreement (the “Agreement”) is entered into this 30th day of March, 2022, to be effective on the date of the Effective Time, by and between Mikel Williamson (“Employee”) and Centennial Bank (“Centennial”).

WHEREAS, Happy Bancshares, Inc. (“Happy”), Happy State Bank (“Target Bank”), Home BancShares, Inc. (“HBI”) and Centennial entered into that certain Agreement and Plan of Merger of even date herewith (the “Merger Agreement”), whereby Happy will merge with and into HBI and Target Bank will merge with and into Centennial (the “Merger”);

WHEREAS, Employee is employed by Target Bank, and Centennial has offered employment to Employee upon the closing of the Merger on the terms set forth in this Agreement;

WHEREAS, Centennial is an at-will employer operating as an Arkansas state bank;

WHEREAS, Centennial maintains a highly skilled management team by providing an attractive employee-benefit package and on-going technical and management training;

WHEREAS, in connection with Employee’s employment with Target Bank prior to the Merger, Employee and Target Bank entered into that certain Executive Employment Agreement, dated January 1, 2021 (the “Executive Employment Agreement”), as amended by the First Amendment to the Executive Employment Agreement, dated August 10, 2021 (the “First Amendment”) (collectively, the “Happy Employment Agreements”), and the Retention Bonus Agreement, dated August 3, 2021, (the “Retention Bonus Agreement”) pursuant to which Employee may be entitled to receive a payment following the closing the Merger;

WHEREAS, it is of material benefit to Centennial to reasonably restrict the availability of Employee’s skills and talents in a competitive market place and to maintain the confidentiality of certain confidential information; and

WHEREAS, the parties desire to memorialize their agreements related to the termination of the Happy Employment Agreements and the continued employment of Employee by Centennial.

NOW THEREFORE, for good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, Employee and Centennial agree:

1.Representations and Warranties related to and Termination of Happy Employment Agreements.

(a)Employee represents and warrants that, other than as provided in the following sentence, there are no payments and benefits due Employee under the Happy Employment Agreements or any payments and benefits owed under any severance or retention plans or agreements with Happy or Target Bank. Notwithstanding the foregoing, nothing in this paragraph 1(a) shall preclude payment of (i) $3,000,000 that may be owed to Employee pursuant to the Retention Bonus Agreement if the conditions therein are satisfied, (ii) amounts owed pursuant to that certain Happy State Bank Executive Salary Continuation Plan Agreement dated January 1, 2015, by and between Happy and Employee, and (iii) amounts owed for securities issued under the Happy Bancshares, Inc. Incentive Stock Option and Nonstatutory Option Plan (Effective April 5, 1994) and the Happy Bancshares, Inc. Restricted Stock and Stock Appreciation Rights Plan (Effective October 18, 2012), all of which is further described on Exhibit A hereto. Employee understands that upon execution hereof, the Happy Employment

Agreements will terminate and any payments owed thereunder will be deemed fully satisfied. Employee agrees that no rights or obligations survive the termination of the Happy Employment Agreements other than those obligations of Employee that expressly survive Closing.

2.Compensation and Benefits for Services. The Employee’s employment shall be effective as of the Effective Time and shall continue until the second anniversary thereof, unless earlier terminated (the “Term”). Beginning on the Effective Time and ending on May 31, 2022, Centennial shall pay Employee the base salary set forth in the First Amendment. Beginning on June 1, 2022, and ending on the first anniversary of the Effective Time, Centennial shall pay to Employee a base salary of $500,000 per year. In addition, during the initial twelve (12) month period of the Term, Employee will be eligible to receive incentive compensation based on the results of a performance evaluation conducted by the Board. The Board shall conduct a performance evaluation of the divisions for which Employee is responsible based on the following performance metrics:

Return on Assets: [***]

Texas Ratio: [***]

Loan Growth: [***]

Efficiency Ratio: [***]

(each a “Performance Metric” and collectively the “Performance Metrics”). The financial data on which the Board will determine whether a Performance Metric have been satisfied shall be for the same calendar year in which the Effective Time falls. For each Performance Metric achieved, Employee shall receive incentive compensation equal to $150,000 (for up to a total amount of $600,000). Payment of such incentive compensation (if any) shall occur in the second pay period of the second calendar month after the calendar year for which the incentive compensation is calculated.

During the second twelve (12) month period of the Term, Centennial shall pay to Employee a base salary of $700,000 per year (the “Second Year Base Salary”). In addition, for calendar year 2023, Employee will be eligible to receive a discretionary bonus of up to 60% of his Base Salary pursuant to the Performance-Based Executive Incentive Bonus Plan if still in effect or any other substitute executive bonus plan adopted by the Board (“Bonus Plan”). During such two-year period, Employee shall be provided with employee benefits which, in the aggregate, are no less favorable than employee benefits provided by Centennial to similarly situated employees of Centennial.

3.Stock Grant. In addition to the compensation described in paragraph 2, within sixty (60) days of the Effective Time, HBI will issue to Employee 50,000 shares of HBI restricted common stock which, subject to paragraph 5 below, shall vest in its entirety on the third annual anniversary of the Effective Time; provided, however that the issuance of such award will be subject to Employee’s employment on the grant date, the registration of such shares on a Form S-8 registration statement (if not otherwise registered), and such other conditions as the HBI compensation committee determines are appropriate and customary for grants of restricted stock to employees.

4.At-Will Employment. Employee will be an at-will employee of Centennial. Nothing herein shall be deemed to grant Employee employment for a specified term, and upon termination of Employee’s employment, Centennial shall have no obligation to continue any

2

salary or benefits beyond the termination date. However, if Centennial terminates Employee’s employment for any reason other than for cause, as determined by Centennial, prior to the end of the Term, then: (a) Employee shall be entitled to receive any unpaid Base Salary described in paragraph 2 for the remainder of the Term; and (b) all shares of restricted common stock awarded to Employee pursuant to Paragraph 3 above, shall become fully vested as of the effective date of Employee’s termination. For purposes of this Agreement, “for cause” means: (i) Employee’s failure to satisfactorily perform his or her duties or (ii) Employee’s engagement in illegal conduct, gross misconduct or any conduct that would result in violations of Section 19 of the Federal Deposit Insurance Act.

5.Change in Control.

(a)Vesting Acceleration Upon a Change in Control. If Centennial or HBI is subject to an event constituting a Change in Control during the Term, all shares of restricted common stock awarded to Employee pursuant to Paragraph 3 above, shall become fully vested as of the date of the event constituting a Change in Control.

(b)Definitions. For purposes of this paragraph 5, and except as otherwise defined herein, the following terms shall have the following meanings:

i.“Beneficial Owner” has the meaning ascribed to it in Rule 13d-3 and Rule 13d-5 under the Exchange Act; except that, in calculating the beneficial ownership of any particular Person, such Person shall be deemed to have beneficial ownership of all securities that such Person has the right to acquire by conversion or exercise of other securities, provided such right is currently exercisable or is exercisable only after the passage of time. The term “Beneficial Ownership” has a corresponding meaning.

ii.“Board” means the board of directors of HBI.

iii.“Change in Control” means, after the Effective Date, the first occurrence of any of the following:

a.one Person (or more than one Person acting as a group) acquires Beneficial Ownership of stock of Centennial or HBI that, together with the stock held by such Person or group, constitutes more than forty percent (40%) of the total fair market value or total voting power of the stock of Centennial or HBI;

b.a majority of the members of the Board are replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the Board before the date of appointment or election; or

c.one Person (or more than one Person acting as a group), acquires (or has acquired during the twelve-month period ending on the date of the most recent acquisition) assets from Centennial or HBI that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of Centennial or HBI immediately before such acquisition(s).

3

A Change in Control will be deemed to occur: (i) with respect to a Change in Control pursuant to subparagraph (a) above, on the date that any Person or group first becomes the Beneficial Owner, directly or indirectly, of stock representing more than forty percent (40%) of the combined voting power of Centennial’s or HBI’s then-outstanding stock entitled generally to vote for the election of directors; (ii) with respect to subparagraph (b) above, on the date members of the incumbent board first cease to constitute at least a majority of the Board, and (iii) with respect to a Change in Control pursuant to subparagraph (c) above, on the date the applicable transaction closes. There shall be no more than one Change in Control event under this Agreement.

iv.“Exchange Act” means the Securities and Exchange Act of 1934, as amended.

v.“Person” has the meaning ascribed to it in Section 13(d)(3) of the Exchange Act.

6.Confidentiality. Employee recognizes and acknowledges that, during the course of his employment with Happy, Target Bank, and Centennial, Employee has and will continue to learn proprietary or confidential business information and has and will continue to have access to other confidential information related to the business of Happy, Target Bank, and Centennial (the “Confidential Information”), all of which Employee agrees to keep confidential at all times. Such Confidential Information includes, but is not limited to: customer lists and sources of customers, customer needs, sales history and financial strengths, vendors and sources of vendors, trade secrets, pricing information, financial information, corporate information, personnel information, methods of operation, the identity and source of markets, marketing information and strategies, data processing and management information system programs and practices, and other proprietary information. Confidential Information does not include any information that is or has been publicly disclosed by any person (other than by Employee in violation of this Agreement) or that is otherwise publicly available. Employee acknowledges that Centennial has a legitimate business interest in its relationships with vendors, customers and clients, as well as vendor, customer and client goodwill associated with Centennial’s trade name, trademark, service mark, trade dress, geographic location, and sales, marketing and trade area. With respect to this Confidential Information, Employee agrees as follows:

(a)Employee will use all such information only in connection with the performance of duties on behalf of Centennial and agrees not to copy, disclose or otherwise use such information other than in connection with the conduct of his duties;

(b)Employee will not, during or after the term of his employment: (1) publish, disclose, or make accessible any Confidential Information, or any part thereof, to any person, firm, corporation, or association or other entity for any reason whatsoever; or (2) use or generate benefit from such information, except during employment with Centennial and for the benefit of Centennial, without the prior written permission of Centennial;

(c)Employee shall return all tangible evidence of such Confidential Information, including, but not limited to, any files, papers, memoranda, records, documents, lists, books, files, and electronically stored or generated information, including any information stored on any computer hard drive, diskettes, tapes, or other format, and copies of the foregoing, to Centennial prior to or at the termination of employment with Centennial;

4

(d)Employee acknowledges and agrees that disclosure of any Confidential Information of Centennial by Employee would cause irreparable harm to Centennial and that Centennial will be irreparably damaged if the provisions of this paragraph are not specifically enforced, that monetary damages will not provide an adequate remedy to Centennial, and that Centennial is entitled to an injunction (preliminary, temporary and final), restraining any violation of this paragraph (without bond or other security being required), or any other appropriate decree of specific performance. In the event there is a breach or a threatened breach by Employee of the provisions of this paragraph, Centennial shall be entitled to an injunction restraining Employee from disclosing in whole or in part such information, generating a benefit from such information, or rendering a service to any person, firm, corporation, association, or other entity, to whom such information has been disclosed. It is agreed that such remedies are not exclusive and shall be in addition to any other remedy to which Centennial may be entitled at law or in equity; and

(e)Employee acknowledges and agrees that the restrictive covenants contained in this Agreement are reasonably necessary to protect the legitimate business interests of Centennial and that the restrictions stated are not overbroad or overlong and are otherwise reasonably necessary to protect the established legitimate business interests of Centennial.

This paragraph 6 shall survive the termination of this Agreement and the termination of Employee’s employment and shall be cumulative with and shall not replace the Trade Secrets and Restrictions on Conduct provisions of the Happy Employment Agreements and the Non-Disclosure of Confidential Information provisions of the Retention Bonus Agreement.

7.Non-competition and Non-Solicitation Covenants:

(a)Employee covenants and agrees that for a period of twenty-four (24) months after the Effective Time, Employee will not directly or indirectly, other than in the ordinary course of performing his duties hereunder or as agreed by Centennial in writing, engage in any business of Centennial or HBI, directly as an individual, partner, shareholder, director, officer, principal, agent, employee, trustee, consultant, or in any relationship or capacity, with any state or nationally chartered bank that has a branch or loan production office within fifty (50) miles of any branch or loan production office of the Target Bank as of the Effective Time.  Employee shall not be deemed to be in violation of this Section 6(a) by reason of the fact that he owns or acquires, solely as an investment, up to two (2%) percent of the outstanding equity securities (measured by value) of any entity.

(b)Employee covenants and agrees that for a period of twenty-four (24) months after the Effective Time, Employee will not without the prior written consent of Centennial, directly or indirectly, hire any employee or independent contractor of Centennial or HBI, or knowingly solicit or encourage any such employee or independent contractor to leave the employ of Centennial or HBI, nor knowingly solicit or encourage any customer or supplier of Centennial or HBI to reduce or cease its business with Centennial or HBI or otherwise knowingly interfere with the relationship of Centennial or HBI or with their customers or suppliers.

5

(c)The purpose of this Agreement, among other things, is to protect Centennial and HBI from unfair or inappropriate competition and to protect its business relationships.  Employee agrees that if the scope of enforcement of this Agreement is ever disputed, a court or other competent trier of fact may modify and enforce it to the extent it believes is lawful and appropriate.

(d)Employee acknowledges that compliance with this Agreement is necessary to protect the business and goodwill of Centennial and HBI and that any actual or prospective breach will cause injury or damage to Centennial and HBI which may be irreparable and for which money damages may not be adequate.  Employee therefore agrees that if he breaches or attempts to breach this Agreement, Centennial and HBI shall be entitled to obtain temporary, preliminary and permanent equitable relief, without bond, to prevent irreparable harm or injury, and to money damages, together with any and all other remedies available under applicable law.  Employee understands that he shall be liable to pay Centennial’s and HBI’s reasonable attorneys’ fees and costs in any successful action by Centennial or HBI to enforce this Agreement.

This paragraph 7 shall survive the termination of this Agreement and the termination of Employee’s employment and shall be cumulative with and shall not replace the Non-competition and Non-solicitation provisions of the Happy Employment Agreements and Retention Bonus Agreement.

8.Compliance with Federal and State Laws. Employee agrees that he shall comply with all requirements of applicable federal and state banking and civil rights laws, including, but not limited to, those arising under the Federal Deposit and Insurance Act, Title VII of the Civil Rights Act of 1964 (Title VII), the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA), the Fair Labor Standards Act (FLSA), the Equal Pay Act, the Employee Retirement Income Security Act (ERISA), the Civil Rights Act of 1991, Section 1981 of U.S.C. Title 42, the Fair Credit Reporting Act (FCRA), the Worker Adjustment and Retraining Notification (WARN) Act, the National Labor Relations Act (NLRA), the Age Discrimination in Employment Act (ADEA), the Uniform Services Employment and Reemployment Rights Act (USERRA), the Genetic Information Nondiscrimination Act (GINA), the Immigration Reform and Control Act (IRCA), the Arkansas Civil Rights Act, the Texas Labor Code including the Texas Payday Act, the Texas Anti-Retaliation Act, Chapter 21 of the Texas Labor Code, and the Texas Whistleblower Act. Employee agrees thatduring the course of his employment with Centennial, he will not engage in unlawful harassment, including, but not limited to harassment based on race, gender, religion, color, age, disability, national origin, genetic information, veteran status, or any other status protected by law. By Employee’s signature below, Employee hereby affirms that he has received an explanation of Centennial’s anti-discrimination and anti-harassment policies as set forth in the current Employee Handbook and Centennial’s policies. Employee further affirms that he understands Centennial’s policies and the procedure whereby employees can complain of discriminatory or harassing behavior, and obtain redress for their complaints. Employee agrees that he will follow such policies and procedures, as they may be amended from time to time, and report to the persons charged with receiving such reports or complaints any instance of discriminatory or harassing behavior in or relating to the workplace, whether that behavior is directed at the Employee or at another person, as explained in more detail in Centennial’s policies against discrimination and harassment, as they may be amended from time to time. Employee will not retaliate against any employee for making an internal or external complaint about any conduct he believes is in violation of Centennial’s policies and procedures or the law.

6

9.Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of any of the other provisions and applications of this Agreement shall not, in any way, be affected or impaired.

10.Entire Agreement; No Oral Modification. This Agreement sets forth the entire understanding between the parties and the subject matter hereof and may not be modified, changed or amended, except by a writing signed by both parties.

11.Binding Effect. This Agreement shall be binding upon and inure to the benefit of the officers, directors, partners, shareholders, other affiliated or related persons, entities or representatives and successors and assigns of the parties.

12.Construction. This Agreement and all provisions contained herein have been jointly reviewed, negotiated and agreed to by the parties and are to be construed accordingly. All titles, headings and captions contained in this Agreement are inserted only as a matter of convenience and in no way define, limit or extend the scope or intent of this Agreement or any provision hereof.

13.Applicable Law. This Agreement shall be governed by, construed, and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Agreement shall be governed by, the laws of the State of Arkansas without giving effect to the State’s principles regarding conflict of laws.

14.Survivorship. The respective rights and obligations of the parties hereunder, including, without limitation, Section 1, Section 4, Section 5, Section 6, Section 8, Section 10, Section 11, Section 12, Section 13, and Section 14 shall survive any termination of the Employee’s employment and termination or expiration of this Agreement to the extent necessary to preserve the rights and obligations set forth herein.

15.Confidentiality of Agreement. Employee agrees and covenants that he shall not disclose any of the negotiations or terms of this Agreement to any individual or entity; provided, however, that the Employee is not be prohibited from making disclosures to the Employee’s spouse or domestic partner, attorney, tax advisors, or as may be required by law.

16.Counterparts and Facsimile Execution. This Agreement may be executed in two or more counterparts each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. To facilitate the execution of this Agreement, this Agreement may be executed by facsimile signature which shall have the same effect as an original signature.

17.Capitalized Terms. All capitalized terms used herein but not otherwise defined shall have the meaning as set out in the Merger Agreement.

18.Effect of Failure to Constitute Merger. If the Merger Agreement is terminated prior to the Effective Time, this Agreement is null and void.

    IN WITNESS WHEREOF, Employee and Centennial have executed this Agreement as of the date first above written.

7

EMPLOYEE:                    CENTENNIAL:

CENTENNIAL BANK

/s/ Mikel Williamson                    By: /s/ Tracy French            

Mikel Williamson                    Tracy French, Chief Executive Officer

Signature Page to Employment Agreement

Exhibit Index*

Exhibit A – Schedule of Employee’s awards and benefits pursuant to the Happy Bancshares, Inc. Incentive Stock Option and Nonstatutory Option Plan, the Happy Bancshares, Inc. Restricted Stock and Stock Appreciation Rights Plan, the Retention Bonus Agreement between Employee and Happy Bancshares, Inc., and the Happy State Bank Executive Salary Continuation Plan Agreement.

* The exhibit listed above has been omitted pursuant to Item 601(a)(5) of SEC Regulation S-K. The registrant hereby agrees to furnish supplementally a copy of such omitted exhibit to the SEC upon request.

EX-15

Exhibit 15

Awareness of Independent Registered

Public Accounting Firm

We are aware that our report dated August 9, 2022, included with the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, is incorporated by reference in Forms S-8 (Nos. 333-136645, 333-148763, 333-188591, 333-211116, 333-226608, 333-229805 and 333-264409) and Form S-3 (No. 333-261495). Pursuant to Rule 436(c) under the Securities Act of 1933 (the Act), this report should not be considered a part of these registration statements prepared or certified by us within the meaning of Sections 7 and 11 of the Act.

FORVIS, LLP

(Formerly BKD,LLP)

Little Rock, Arkansas

August 9, 2022

EX-31.1

Exhibit 31.1

I, John W. Allison, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Home BancShares, Inc. for the period ended June 30, 2022;

2.Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d)disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2022	/s/ John W. Allison
	John W. Allison
	Chief Executive Officer

EX-31.2

Exhibit 31.2

I, Brian S. Davis, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Home BancShares, Inc. for the period ended June 30, 2022;

2.Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d)disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2022	/s/ Brian S. Davis
	Brian S. Davis
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report of Home BancShares, Inc. (the Company) on Form 10-Q for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, John W. Allison, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 9, 2022	/s/ John W. Allison
	John W. Allison
	Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report of Home BancShares, Inc. (the Company) on Form 10-Q for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Brian S. Davis, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 9, 2022	/s/ Brian S. Davis
	Brian S. Davis
	Chief Financial Officer

XML

Cover - shares	6 Months Ended
	Jun. 30, 2022	Aug. 08, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-41093
Entity Registrant Name	HOME BANCSHARES, INC.
Entity Incorporation, State or Country Code	AR
Entity Tax Identification Number	71-0682831
Entity Address, Address Line One	719 Harkrider, Suite 100
Entity Address, City or Town	Conway
Entity Address, State or Province	AR
Entity Address, Postal Zip Code	72032
City Area Code	501
Local Phone Number	339-2929
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	HOMB
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		205,065,089
Entity Central Index Key	0001331520
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets
Cash and due from banks	$ 287,451	$ 119,908
Interest-bearing deposits with other banks	2,528,925	3,530,407
Cash and cash equivalents	2,816,376	3,650,315
Investment securities – available-for-sale, net of allowance for credit losses	3,791,509	3,119,807
Investment securities — held-to-maturity, net of allowance for credit losses	1,366,781	0
Total investment securities	5,158,290	3,119,807
Loans receivable	13,923,873	9,836,089
Allowance for credit losses	(294,267)	(236,714)
Loans receivable, net	13,629,606	9,599,375
Bank premises and equipment, net	415,056	275,760
Foreclosed assets held for sale	373	1,630
Cash value of life insurance	211,811	105,135
Accrued interest receivable	80,274	46,736
Deferred tax asset, net	208,585	78,290
Goodwill	1,398,400	973,025
Core deposit and other intangibles	63,410	25,045
Other assets	270,987	177,020
Total assets	24,253,168	18,052,138
Deposits:
Demand and non-interest-bearing	6,036,583	4,127,878
Savings and interest-bearing transaction accounts	12,424,192	9,251,805
Time deposits	1,119,297	880,887
Total deposits	19,580,072	14,260,570
Securities sold under agreements to repurchase	118,573	140,886
FHLB and other borrowed funds	400,000	400,000
Accrued interest payable and other liabilities	197,503	113,868
Subordinated debentures	458,455	371,093
Total liabilities	20,754,603	15,286,417
Stockholders’ equity:
Common stock, par value $0.01; shares authorized 300,000,000 in 2022 and 2021; shares issued and outstanding 205,290,527 in 2022 and 163,699,282 in 2021	2,053	1,637
Capital surplus	2,426,271	1,487,373
Retained earnings	1,286,146	1,266,249
Accumulated other comprehensive (loss) income	(215,905)	10,462
Total stockholders’ equity	3,498,565	2,765,721
Total liabilities and stockholders’ equity	$ 24,253,168	$ 18,052,138

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	205,290,527	163,699,282
Common stock, shares outstanding	205,290,527	163,699,282

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Interest income:
Loans	$ 181,779	$ 141,684	$ 311,221	$ 292,601
Investment securities
Taxable	20,941	7,185	30,021	13,438
Tax-exempt	7,725	4,905	12,432	9,976
Deposits – other banks	6,565	707	8,238	1,117
Federal funds sold	3	0	4	0
Total interest income	217,013	154,481	361,916	317,132
Interest expense:
Interest on deposits	10,729	6,434	15,623	14,139
Federal funds purchased	2	0	2	0
FHLB and other borrowed funds	1,896	1,896	3,771	3,771
Securities sold under agreements to repurchase	187	107	295	297
Subordinated debentures	5,441	4,792	12,319	9,585
Total interest expense	18,255	13,229	32,010	27,792
Net interest income	198,758	141,252	329,906	289,340
Provision for credit losses	45,170	0	45,170	0
Provision for credit losses on acquired unfunded commitments	11,410	0	11,410	0
Provision for credit losses on acquired unfunded commitments	0	(4,752)	0	(4,752)
Provision for credit losses on acquired held-to-maturity investment securities	2,005	0	2,005	0
Total credit loss expense (benefit)	58,585	(4,752)	58,585	(4,752)
Net interest income after credit loss expense (benefit)	140,173	146,004	271,321	294,092
Non-interest income:
Trust fees	4,320	444	4,894	966
Mortgage lending income	5,996	6,202	9,912	14,369
Insurance commissions	658	478	1,138	970
Increase in cash value of life insurance	1,140	537	1,632	1,039
Dividends from FHLB, FRB, FNBB & other	3,945	2,646	4,643	11,255
Gain on sale of SBA loans	0	1,149	95	1,149
Gain (loss) on sale of branches, equipment and other assets, net	2	(23)	18	(52)
Gain on OREO, net	9	619	487	1,020
Gain on securities, net	0	0	0	219
Fair value adjustment for marketable securities	(1,801)	1,250	324	7,032
Other income	7,687	3,043	15,609	11,044
Total non-interest income	44,581	31,120	75,250	76,396
Non-interest expense:
Salaries and employee benefits	65,795	42,462	109,346	84,521
Occupancy and equipment	14,256	9,042	23,400	18,279
Data processing expense	10,094	5,893	17,133	11,763
Merger and acquisition expenses	48,731	0	49,594	0
Other operating expenses	26,606	15,585	42,905	31,285
Total non-interest expense	165,482	72,982	242,378	145,848
Income before income taxes	19,272	104,142	104,193	224,640
Income tax expense	3,294	25,072	23,323	53,968
Net income	$ 15,978	$ 79,070	$ 80,870	$ 170,672
Basic earnings per share (in dollars per share)	$ 0.08	$ 0.48	$ 0.44	$ 1.03
Diluted earnings per share (in dollars per share)	$ 0.08	$ 0.48	$ 0.44	$ 1.03
Service charges on deposit accounts
Non-interest income:
Service charges	$ 10,084	$ 5,116	$ 16,224	$ 10,118
Other service charges and fees
Non-interest income:
Service charges	$ 12,541	$ 9,659	$ 20,274	$ 17,267

XML

Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 15,978	$ 79,070	$ 80,870	$ 170,672
Net unrealized (loss) gain on available-for-sale securities	(146,888)	13,091	(302,603)	(20,309)
Other comprehensive (loss) income before tax effect	(146,888)	13,091	(302,603)	(20,309)
Tax effect on other comprehensive loss (income)	35,540	(3,421)	76,236	5,308
Other comprehensive (loss) income	(111,348)	9,670	(226,367)	(15,001)
Comprehensive (loss) income	$ (95,370)	$ 88,740	$ (145,497)	$ 155,671

XML

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Capital Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Dec. 31, 2020	$ 2,605,758	$ 1,651	$ 1,520,617	$ 1,039,370	$ 44,120
Comprehensive income:
Net income	91,602			91,602
Other comprehensive income (loss)	(24,671)				(24,671)
Net issuance of shares of common stock from exercise of stock options	2,322	1	2,321
Repurchase of shares of common stock	(8,770)	(3)	(8,767)
Share-based compensation net issuance of shares of restricted common stock	2,117	2	2,115
Cash dividends - Common Stock	(23,154)			(23,154)
Ending balance at Mar. 31, 2021	2,645,204	1,651	1,516,286	1,107,818	19,449
Beginning Balance at Dec. 31, 2020	2,605,758	1,651	1,520,617	1,039,370	44,120
Comprehensive income:
Net income	170,672
Other comprehensive income (loss)	(15,001)
Ending balance at Jun. 30, 2021	2,696,189	1,645	1,501,615	1,163,810	29,119
Beginning Balance at Mar. 31, 2021	2,645,204	1,651	1,516,286	1,107,818	19,449
Comprehensive income:
Net income	79,070			79,070
Other comprehensive income (loss)	9,670				9,670
Repurchase of shares of common stock	(16,953)	(6)	(16,947)
Share-based compensation net issuance of shares of restricted common stock	2,276		2,276
Cash dividends - Common Stock	(23,078)			(23,078)
Ending balance at Jun. 30, 2021	2,696,189	1,645	1,501,615	1,163,810	29,119
Beginning Balance at Dec. 31, 2021	2,765,721	1,637	1,487,373	1,266,249	10,462
Comprehensive income:
Net income	64,892			64,892
Other comprehensive income (loss)	(115,019)				(115,019)
Net issuance of shares of common stock from exercise of stock options	130	1	129
Repurchase of shares of common stock	(4,089)	(2)	(4,087)
Share-based compensation net issuance of shares of restricted common stock	2,111	2	2,109
Cash dividends - Common Stock	(27,043)			(27,043)
Ending balance at Mar. 31, 2022	2,686,703	1,638	1,485,524	1,304,098	(104,557)
Beginning Balance at Dec. 31, 2021	2,765,721	1,637	1,487,373	1,266,249	10,462
Comprehensive income:
Net income	80,870
Other comprehensive income (loss)	(226,367)
Ending balance at Jun. 30, 2022	3,498,565	2,053	2,426,271	1,286,146	(215,905)
Beginning Balance at Mar. 31, 2022	2,686,703	1,638	1,485,524	1,304,098	(104,557)
Comprehensive income:
Net income	15,978			15,978
Other comprehensive income (loss)	(111,348)				(111,348)
Net issuance of shares of common stock from exercise of stock options	26		26
Issuance of common stock including certain stock award settlements and stock issuance costs - Happy Bancshares acquisition	961,290	424	960,866
Repurchase of shares of common stock	(22,492)	(10)	(22,482)
Share-based compensation net issuance of shares of restricted common stock	2,338	1	2,337
Cash dividends - Common Stock	(33,930)			(33,930)
Ending balance at Jun. 30, 2022	$ 3,498,565	$ 2,053	$ 2,426,271	$ 1,286,146	$ (215,905)

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Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021
Net issuance of shares of common stock from exercise of stock options (in shares)	1,500	15,909	3,628	161,434
Issuance of common stock shares - Happy Bancshares Acquisition (in shares)	42,425,352
Common stock shares repurchased (in shares)	1,032,732	180,000	635,000	330,000
Issuance of restricted common stock (in shares)	138,499	222,717	21,500	214,684
Common stock, cash dividends per share (in dollars per share)	$ 0.165	$ 0.165	$ 0.14	$ 0.14
Happy Bancshares, Inc.
Common stock issuance costs - market acquisition	$ 2,500

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended				6 Months Ended			12 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2021
Operating Activities
Net income	$ 15,978	$ 64,892	$ 79,070	$ 91,602	$ 80,870		$ 170,672
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization					15,480		9,535
Increase in value of equity securities	1,801		(1,250)		(324)		(7,032)
Amortization of securities, net					12,874		13,693
Accretion of purchased loans					(8,266)		(11,282)
Share-based compensation					4,449		4,393
Gain on assets					(600)		(2,336)
Provision for credit losses	45,170		0		45,170	$ 0	0
Provision for credit losses on acquired unfunded commitments	11,410		0		11,410		0
Provision for credit losses on acquired unfunded commitments	0		(4,752)		0		(4,752)
Provision for credit losses on acquired held-to-maturity investment securities	2,005		0		2,005		0
Deferred income tax effect	(21,025)		4,873		(18,645)		3,311
Increase in cash value of life insurance	(1,140)		(537)		(1,632)		(1,039)
Originations of mortgage loans held for sale					(308,850)		(393,886)
Proceeds from sales of mortgage loans held for sale					243,823		419,052
Changes in assets and liabilities:
Accrued interest receivable					(1,548)		11,803
Other assets					(1,067)		5,116
Accrued interest payable and other liabilities					27,466		(4,832)
Net cash provided by operating activities					102,615		212,416
Investing Activities
Net (increase) decrease in loans, excluding purchased loans					(126,794)		989,477
Purchases of investment securities – available-for-sale					(655,393)		(968,660)
Purchases of investment securities - held-to-maturity					(501,882)		0
Proceeds from maturities of investment securities – available-for-sale					333,315		336,834
Proceeds from maturities of investment securities – held-to-maturity					250,020		0
Proceeds from sales of investment securities – available-for-sale					0		18,112
Purchases of equity securities					(29,975)		(10,460)
Proceeds from sales of equity securities					13,778		15,354
Purchase of other investments					(27,867)		(5,084)
Proceeds from foreclosed assets held for sale					1,874		5,422
Proceeds from sale of SBA loans					2,859		12,361
Purchases of premises and equipment, net					(6,596)		(6,252)
Return of investment on cash value of life insurance					0		418
Purchase of marine loan portfolio					(242,617)		0
Net cash received - market acquisition					858,898		0
Net cash (used in) provided by investing activities					(130,380)		387,522
Financing Activities
Net (decrease) increase in deposits					(535,708)		1,165,551
Net decrease in securities sold under agreements to repurchase					(22,313)		(18,391)
Net decrease in FHLB and other borrowed funds					(78,330)		0
Retirement of subordinated debentures					(300,000)		0
Proceeds from issuance of subordinated debentures					296,444		0
Redemption of trust preferred securities					(78,869)		0
Proceeds from exercise of stock options					156		2,322
Repurchase of common stock					(26,581)		(25,723)
Dividends paid on common stock					(60,973)		(46,232)
Net cash (used in) provided by financing activities					(806,174)		1,077,527
Net change in cash and cash equivalents					(833,939)		1,677,465
Cash and cash equivalents – beginning of year		$ 3,650,315		$ 1,263,788	3,650,315	2,941,253	1,263,788	$ 1,263,788
Cash and cash equivalents – end of period	$ 2,816,376		$ 2,941,253		$ 2,816,376	$ 3,650,315	$ 2,941,253	$ 3,650,315

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Nature of Operations and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Summary of Significant Accounting Policies

1. Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

Home BancShares, Inc. (the “Company” or “HBI”) is a bank holding company headquartered in Conway, Arkansas. The Company is primarily engaged in providing a full range of banking services to individual and corporate customers through its wholly-owned community bank subsidiary – Centennial Bank (sometimes referred to as “Centennial” or the “Bank”). The Bank has branch locations in Arkansas, Florida, South Alabama, Texas and New York City. The Company is subject to competition from other financial institutions. The Company also is subject to the regulation of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities.

A summary of the significant accounting policies of the Company follows:

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Bank is the only significant subsidiary upon which management makes decisions regarding how to allocate resources and assess performance. Each of the branches of the Bank provide a group of similar banking services, including such products and services as commercial, real estate and consumer loans, time deposits, checking and savings accounts. The individual bank branches have similar operating and economic characteristics. While the chief decision maker monitors the revenue streams of the various products, services and branch locations, operations are managed, and financial performance is evaluated on a company-wide basis. Accordingly, all of the banking services and branch locations are considered by management to be aggregated into one reportable operating segment.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, the valuation of investment securities, the valuation of foreclosed assets and the valuations of assets acquired, and liabilities assumed in business combinations. In connection with the determination of the allowance for credit losses and the valuation of foreclosed assets, management obtains independent appraisals for significant properties.

Principles of Consolidation

The consolidated financial statements include the accounts of HBI and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Various items within the accompanying consolidated financial statements for previous years have been reclassified to provide more comparative information. These reclassifications had no effect on net earnings or stockholders’ equity.

Interim financial information

The accompanying unaudited consolidated financial statements as of June 30, 2022 and 2021 have been prepared in condensed format, and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

The information furnished in these interim statements reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year. The interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2021 Form 10-K, filed with the Securities and Exchange Commission.

Loans Receivable and Allowance for Credit Losses

Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balance adjusted for any charge-offs, deferred fees or costs on originated loans. Interest income on loans is accrued over the term of the loans based on the principal balance outstanding. Loan origination fees and direct origination costs are capitalized and recognized as adjustments to yield on the related loans.

The allowance for credit losses on loans receivable is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed and expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, commercial real estate price index, housing price index and national retail sales index.

The allowance for credit losses is measured based on call report segment as these types of loans exhibit similar risk characteristics. The identified loan segments are as follows:

•1-4 family construction

•All other construction

•1-4 family revolving home equity lines of credit (“HELOC”) & junior liens

•1-4 family senior liens

•Multifamily

•Owner occupied commercial real estate

•Non-owner occupied commercial real estate

•Commercial & industrial, agricultural, non-depository financial institutions, purchase/carry securities, other

•Consumer auto

•Other consumer

•Other consumer - SPF

The allowance for credit losses for each segment is measured through the use of the discounted cash flow method. Loans evaluated individually that are considered to be collateral dependent are not included in the collective evaluation. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. For loans that are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation if a specific reserve is not recorded.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies:

•Management has a reasonable expectation at the reporting date that troubled debt restructuring will be executed with an individual borrower.

•The extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factors ("Q-Factors") and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions.

Loans considered impaired, according to ASC 326, are loans for which, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. The aggregate amount of impairment of loans is utilized in evaluating the adequacy of the allowance for credit losses and amount of provisions thereto. Losses on impaired loans are charged against the allowance for credit losses when in the process of collection, it appears likely that such losses will be realized. The accrual of interest on impaired loans is discontinued when, in management’s opinion the collection of interest is doubtful or generally when loans are 90 days or more past due. When accrual of interest is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Loans are placed on non-accrual status when management believes that the borrower’s financial condition, after giving consideration to economic and business conditions and collection efforts, is such that collection of interest is doubtful, or generally when loans are 90 days or more past due. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Accrued interest related to non-accrual loans is generally charged against the allowance for credit losses when accrued in prior years and reversed from interest income if accrued in the current year. Interest income on non-accrual loans may be recognized to the extent cash payments are received, although the majority of payments received are usually applied to principal. Non-accrual loans are generally returned to accrual status when principal and interest payments are less than 90 days past due, the customer has made required payments for at least six months, and we reasonably expect to collect all principal and interest.

Acquisition Accounting and Acquired Loans

The Company accounts for its acquisitions under FASB ASC Topic 805, Business Combinations, which requires the use of the purchase method of accounting. All identifiable assets acquired, including loans, are recorded at fair value. In accordance with ASC 326, the Company records both a discount or premium and an allowance for credit losses on acquired loans. All purchased loans are recorded at fair value in accordance with the fair value methodology prescribed in FASB ASC Topic 820, Fair Value Measurements. The fair value estimates associated with the loans include estimates related to expected prepayments and the amount and timing of undiscounted expected principal, interest and other cash flows.

Purchased loans that have experienced more than insignificant credit deterioration since origination are purchase credit deteriorated (“PCD”) loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for impairment. These models utilize a peer group benchmark in order to determine the probability of default and loss given default to be used in the calculation. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses.

For further discussion of the Company’s acquisitions, see Note 2 to the Condensed Notes to Consolidated Financial Statements.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Revenue Recognition

Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as our loans, letters of credit, investment securities and mortgage lending income, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our significant revenue-generating activities that are within the scope of ASC Topic 606, which are presented in our income statements as components of non-interest income are as follows:

•Service charges on deposit accounts – These represent general service fees for monthly account maintenance and activity or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied.

•Other service charges and fees – These represent credit card interchange fees and Centennial Commercial Finance Group (“Centennial CFG”) loan fees. The interchange fees are recorded in the period the performance obligation is satisfied which is generally the cash basis based on agreed upon contracts. The Centennial CFG loan fees are based on loan or other negotiated agreements with customers and are accounted for under ASC Topic 310.

Earnings per Share

Basic earnings per share is computed based on the weighted-average number of shares outstanding during each year. Diluted earnings per share is computed using the weighted-average shares and all potential dilutive shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the following periods:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands)
Net income	$	15,978	$	79,070	$	80,870	$	170,672
Average shares outstanding	205,683		164,781		184,851		165,018
Effect of common stock options	332		445		372		296
Average diluted shares outstanding	206,015		165,226		185,223		165,314
Basic earnings per share	$	0.08	$	0.48	$	0.44	$	1.03
Diluted earnings per share	$	0.08	$	0.48	$	0.44	$	1.03

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Business Combinations

6 Months Ended

Jun. 30, 2022

Business Combinations [Abstract]

Business Combinations

2. Business Combinations

Acquisition of Happy Bancshares, Inc.

On April 1, 2022, the Company completed the acquisition of Happy Bancshares, Inc. (“Happy”), and merged Happy State Bank into Centennial Bank. The Company issued approximately 42.4 million shares of its common stock valued at approximately $958.8 million as of April 1, 2022. In addition, the holders of certain Happy stock-based awards received approximately $3.7 million in cash in cancellation of such awards, for a total transaction value of approximately $962.5 million. The acquisition added new markets for expansion and brings complementary businesses together to drive synergies and growth.

Including the effects of the known purchase accounting adjustments, as of the acquisition date, Happy had approximately $6.68 billion in total assets, $3.65 billion in loans and $5.86 billion in customer deposits. Happy formerly operated its banking business from 62 locations in Texas.

The purchase price allocation and certain fair value measurements remain preliminary due to the timing of the acquisition. The Company will continue to review the estimated fair values of loans, deposits and intangible assets, and to evaluate the assumed tax positions and contingencies.

The Company has determined that the acquisition of the net assets of Happy constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired and liabilities assumed are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. The following schedule is a preliminary breakdown of the assets acquired and liabilities assumed as of the acquisition date:

	Happy Bancshares, Inc.
	Acquired from Happy		Fair Value Adjustments		As Recorded by HBI
	(Dollars in thousands)
Assets
Cash and due from banks	$	112,999	$	(132)	$	112,867
Interest-bearing deposits with other banks	746,031		—		746,031
Cash and cash equivalents	859,030		(132)		858,898
Investment securities - available-for-sale, net of allowance for credit losses	1,773,540		8,485		1,782,025
Total investment securities	1,773,540		8,485		1,782,025
Loans receivable	3,657,009		(4,303)		3,652,706
Allowance for credit losses	(42,224)		25,408		(16,816)
Loans receivable, net	3,614,785		21,105		3,635,890
Bank premises and equipment, net	153,642		(11,575)		142,067
Foreclosed assets held for sale	193		(77)		116
Cash value of life insurance	105,049		3		105,052
Accrued interest receivable	31,575		—		31,575
Deferred tax asset, net	32,908		2,506		35,414
Goodwill	130,428		(130,428)		—
Core deposit and other intangibles	10,672		31,591		42,263
Other assets	43,330		6,422		49,752
Total assets acquired	$	6,755,152	$	(72,100)	$	6,683,052
Liabilities
Deposits
Demand and non-interest-bearing	$	1,932,756	$	—	$	1,932,756
Savings and interest-bearing transaction accounts	3,519,652		—		3,519,652
Time deposits	401,899		903		402,802
Total deposits	5,854,307		903		5,855,210
FHLB and other borrowed funds	74,212		4,118		78,330
Accrued interest payable and other liabilities	50,889		(6,130)		44,759
Subordinated debentures	159,965		7,625		167,590
Total liabilities assumed	$	6,139,373	$	6,516	$	6,145,889
Equity
Total equity assumed	615,779		(615,779)		—
Total liabilities and equity assumed	$	6,755,152	$	(609,263)	$	6,145,889
Net assets acquired					537,163
Purchase price					962,538
Goodwill					$	425,375

The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above:

Cash and due from banks, interest-bearing deposits with other banks and federal funds sold – The carrying amount of these assets was deemed a reasonable estimate of fair value based on the short-term nature of these assets.

Investment securities – Investment securities were acquired from Happy with an approximately $8.5 million adjustment to fair value based upon quoted market prices. Otherwise the book value was deemed to approximate fair value.

Loans – Fair values for loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan, whether or not the loan was amortizing and current discount rates. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity concerns. The discount rate does not include a factor for credit losses as that has been included in the estimated cash flows. Loans were grouped together according to similar characteristics and were treated in the aggregate when applying various valuation techniques. See Note 5 to the Condensed Notes to Consolidated Financial Statements, for additional information related to purchased financial assets with credit deterioration.

Bank premises and equipment – Bank premises and equipment were acquired from Happy with a $11.6 million adjustment to fair value. This represents the difference between current appraisals completed in connection with the acquisition and book value acquired.

Foreclosed assets held for sale – These assets are presented at the estimated fair values that management expects to receive when the properties are sold, net of related costs of disposal.

Cash value of life insurance – Bank owned life insurance is carried at its current cash surrender value, which is the most reasonable estimate of fair value.

Accrued interest receivable – The carrying amount of these assets was deemed a reasonable estimate of the fair value.

Core deposit intangible and other intangibles – This core deposit intangible asset represents the value of the relationships that Happy had with its deposit customers. The fair value of this intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base, and the net maintenance cost attributable to customer deposits.

Deposits – The fair values used for the demand and savings deposits that comprise the transaction accounts acquired, by definition, equal the amount payable on demand at the acquisition date. The $903,000 fair value adjustment applied for time deposits was because the weighted-average interest rate of Happy’s certificates of deposits were estimated to be below the current market rates.

FHLB borrowed funds – The fair value of FHLB borrowed funds is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

Accrued interest payable and other liabilities – The fair value adjustment results from certain liabilities whose value was estimated to be more or less than book value, such as certain accounts payable and other miscellaneous liabilities. The carrying amount of accrued interest and the remainder of other liabilities was deemed to be a reasonable estimate of fair value.

Subordinated debentures – The fair value of subordinated debentures is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

The unaudited pro-forma combined consolidated financial information presents how the combined financial information of HBI and Happy might have appeared had the businesses actually been combined. The following schedule represents the unaudited pro forma combined financial information as of the three and six-month periods ended June 30, 2022 and 2021, assuming the acquisition was completed as of January 1, 2021:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands, except per share data)
Total interest income	$	217,013	$	211,279	$	419,318	$	418,143
Total non-interest income	44,581		44,427		88,151		101,485
Net income available to all shareholders	96,923		34,536		182,557		129,653
Basic earnings per common share	$	0.47	$	0.17	$	0.89	$	0.63
Diluted earnings per common share	$	0.47	$	0.17	$	0.88	$	0.62

The unaudited pro-forma consolidated financial information is presented for illustrative purposes only and does not indicate the financial results of the combined company had the companies actually been combined at the beginning of the period presented and had the impact of possible significant revenue enhancements and expense efficiencies from in-market cost savings, among other factors, been considered and, accordingly, does not attempt to predict or suggest future results. Pro-forma results include Happy merger expenses of $48.7 million and $49.6 million, provision for credit losses on acquired loans of $45.2 million, provision for credit losses on acquired unfunded commitments of $11.4 million and provision for credit losses on acquired investment securities of $2.0 million for the three and six months ended June 30, 2022 and 2021, respectively. The pro-forma financial information also does not necessarily reflect what the historical results of the combined company would have been had the companies been combined during this period.

Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. For PCD loans, the initial estimate of expected credit losses is recognized in the allowance for credit losses on the date of acquisition using the same methodology as other loans and leases held-for-investment. The following table provides a summary of loans purchased as part of the Happy acquisition with credit deterioration at acquisition:

	April 1, 2022
	(In thousands)
Purchased Loans with Credit Deterioration:
Par value	$	165,028
Allowance for credit losses at acquisition	(16,816)
Premium on acquired loans	684
Purchase price	$	148,896

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Investment Securities

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investment Securities

3. Investment Securities

The following table summarizes the amortized cost and fair value of securities that are classified as available-for-sale and held-to-maturity are as follows:

	June 30, 2022
	Available-for-Sale
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	465,293	$	—	$	465,293	$	2,822	$	(16,658)	$	451,457
Residential mortgage-backed securities	1,780,519		—		1,780,519		657		(152,990)		1,628,186
Commercial mortgage-backed securities	363,117		—		363,117		14		(13,067)		350,064
State and political subdivisions	1,027,748		(842)		1,026,906		1,111		(93,486)		934,531
Other securities	444,184		—		444,184		131		(17,044)		427,271
Total	$	4,080,861	$	(842)	$	4,080,019	$	4,735	$	(293,245)	$	3,791,509

	June 30, 2022
	Held-to-Maturity
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. Treasuries	$	277,688	$	—	$	277,688	$	—	$	(1,659)	$	276,029
State and political subdivisions	1,091,098		(2,005)		1,089,093		26		(91,868)		997,251
Total	$	1,368,786	$	(2,005)	$	1,366,781	$	26	$	(93,527)	$	1,273,280

	December 31, 2021
	Available-for-Sale
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	433,829	$	—	$	433,829	$	2,375	$	(3,225)	$	432,979
Residential mortgage-backed securities	1,175,185		—		1,175,185		4,085		(18,551)		1,160,719
Commercial mortgage-backed securities	372,702		—		372,702		6,521		(1,968)		377,255
State and political subdivisions	973,318		(842)		972,476		26,296		(1,794)		996,978
Other securities	151,449		—		151,449		1,781		(1,354)		151,876
Total	$	3,106,483	$	(842)	$	3,105,641	$	41,058	$	(26,892)	$	3,119,807

On April 1, 2022, the Company completed the acquisition of Happy. Including the effects of the known purchase accounting adjustments, as of the acquisition date, Happy had approximately $1.78 billion in investments, net of purchase accounting adjustments. The Company classified approximately $1.12 billion of investments acquired from Happy as held-to-maturity at the acquisition date.

Assets, principally investment securities, having a carrying value of approximately $2.77 billion and $1.15 billion at June 30, 2022 and December 31, 2021, respectively, were pledged to secure public deposits, as collateral for repurchase agreements, and for other purposes required or permitted by law. Investment securities pledged as collateral for repurchase agreements totaled approximately $118.6 million and $140.9 million at June 30, 2022 and December 31, 2021, respectively.

The amortized cost and estimated fair value of securities classified as available-for-sale and held-to-maturity at June 30, 2022, by contractual maturity, are shown below. Expected maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	21,153	$	21,175	$	249,949	$	249,689
Due after one year through five years	145,743		140,380		4,757		4,690
Due after five years through ten years	487,573		459,863		181,961		168,691
Due after ten years	1,277,149		1,186,305		932,119		850,210
Mortgage - backed securities: Residential	1,780,519		1,628,186		—		—
Mortgage - backed securities: Commercial	363,117		350,064		—		—
Other	5,607		5,536		—		—
Total	$	4,080,861	$	3,791,509	$	1,368,786	$	1,273,280

During the three and six months ended June 30, 2022, no available-for-sale securities were sold.

During the three months ended June 30, 2021, no available-for-sale securities were sold. There were no realized gains or losses recorded on sales for the three months ended June 30, 2021. During the six months ended June 30, 2021, $17.9 million in available-for-sale securities were sold. The gross realized gains on the sales totaled $219,000 for the six months ended June 30, 2021.

The following table shows gross unrealized losses and estimated fair value of investment securities classified as available-for-sale and held-to-maturity, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of June 30, 2022 and December 31, 2021.

	June 30, 2022
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Available-for-sale:
U.S. government-sponsored enterprises	$	115,827	$	(10,132)	$	67,691	$	(6,526)	$	183,518	$	(16,658)
Residential mortgage-backed securities	1,205,092		(105,830)		253,686		(47,160)		1,458,778		(152,990)
Commercial mortgage-backed securities	299,151		(9,507)		44,291		(3,560)		343,442		(13,067)
State and political subdivisions	789,862		(89,276)		22,922		(4,210)		812,784		(93,486)
Other securities	293,266		(15,278)		17,222		(1,766)		310,488		(17,044)
Total	$	2,703,198	$	(230,023)	$	405,812	$	(63,222)	$	3,109,010	$	(293,245)
Held-to-maturity:
U.S. Treasuries	276,029		(1,659)		—		—		276,029		(1,659)
State and political subdivisions	998,550		(91,868)		—		—		998,550		(91,868)
Total	$	1,274,579	$	(93,527)	$	—	$	—	$	1,274,579	$	(93,527)

	December 31, 2021
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. government-sponsored enterprises	$	120,730	$	(1,356)	$	78,124	$	(1,869)	$	198,854	$	(3,225)
Residential mortgage-backed securities	854,807		(15,246)		104,897		(3,305)		959,704		(18,551)
Commercial mortgage-backed securities	100,702		(1,251)		28,711		(717)		129,413		(1,968)
State and political subdivisions	136,135		(1,282)		18,647		(512)		154,782		(1,794)
Other securities	75,744		(1,316)		2,703		(38)		78,447		(1,354)
Total	$	1,288,118	$	(20,451)	$	233,082	$	(6,441)	$	1,521,200	$	(26,892)

The Company evaluates all securities quarterly to determine if any debt securities in a loss position require a provision for credit losses in accordance with ASC 326, Measurement of Credit Losses on Financial Instruments. The Company first assesses whether it intends to sell or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities that do not meet this criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

The Company recorded a $2.0 million provision for credit losses on the held-to-maturity investment securities during the second quarter of 2022 as a result of the investment securities acquired as part of the Happy acquisition. Of the Company's held-to-maturity securities, $1.09 billion, or 79.7% are municipal securities. To estimate the necessary loss provision, the Company utilized historical default and recovery rates of the municipal bond sector and applied these rates using a pooling method. The remainder of investments classified as held-to-maturity are U.S. Treasury securities. Due to the inherent low risk in U.S. Treasury securities, no provision for credit loss was established on that portion of the portfolio.

At June 30, 2022, the Company determined that the allowance for credit losses of $842,000, resulting from economic uncertainty, was adequate for the available-for-sale investment portfolio, and the allowance for credit losses for the held-to-maturity portfolio resulting from the Happy acquisition was considered adequate. No additional provision for credit losses was considered necessary for the portfolio.

Available-for-Sale Investment Securities
	June 30, 2022		December 31, 2021
	(In thousands)
Allowance for credit losses:
Beginning balance	$	842	$	842
Provision for credit loss	—		—
Balance, June 30	$	842	$	842
Provision for credit loss			—
Balance, December 31, 2021			$	842

Held-to-Maturity Investment Securities
	June 30, 2022				December 31, 2021
	State and Political Subdivisions		U.S. Treasuries		State and Political Subdivisions		U.S. Treasuries
Allowance for credit losses:	(In thousands)
Beginning balance	$	—	$	—	$	—	$	—
Provision for credit loss - acquired securities	(2,005)		—		—		—
Securities charged-off	—		—		—		—
Recoveries	—		—		—		—
Balance, June 30, 2022	$	(2,005)	$	—	$	—	$	—

For the six months ended June 30, 2022, the Company had investment securities with approximately $63.2 million in unrealized losses, which have been in continuous loss positions for more than twelve months. The Company’s assessments indicated that the cause of the market depreciation was primarily due to the change in interest rates and not the issuer’s financial condition or downgrades by rating agencies. In addition, approximately 33.4% of the principal balance from the Company’s investment portfolio will mature or are expected to pay down within five years or less. As a result, the Company has the ability and intent to hold such securities until maturity.

As of June 30, 2022, the Company's available-for-sale securities portfolio consisted of 1,644 investment securities, 1,333 of which were in an unrealized loss position. As noted in the table above, the total amount of the unrealized loss was $293.2 million. The U.S. government-sponsored enterprises portfolio contained unrealized losses of $16.7 million on 58 securities. The residential mortgage-backed securities portfolio contained $153.0 million of unrealized losses on 575 securities, and the commercial mortgage-backed securities portfolio contained $13.1 million of unrealized losses on 152 securities. The state and political subdivisions portfolio contained $93.5 million of unrealized losses on 466 securities. In addition, the other securities portfolio contained $17.0 million of unrealized losses on 82 securities. The unrealized losses on the Company's investments were a result of interest rate changes. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value was attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company has determined that an additional provision for credit losses is not necessary as of June 30, 2022.

As of June 30, 2022, the Company's held-to-maturity securities portfolio consisted of 482 investment securities, 480 of which were in an unrealized loss position. As noted in the table above, the total amount of the unrealized loss was $93.5 million. The U.S Treasury portfolio contained unrealized losses of $1.7 million on 5 securities, and the state and political subdivisions portfolio contained $91.9 million of unrealized losses on 475 securities.

The following table summarizes bond ratings for the Company’s held-to-maturity portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of June 30, 2022:

	State and Political Subdivisions		U.S. Treasuries		Total
	(In thousands)
Aaa/AAA	$	217,912	$	277,688	$	495,600
Aa/AA	837,675		—		837,675
A	33,677		—		33,677
Baa/BBB	—		—		—
Not rated	1,834		—		1,834
Total	$	1,091,098	$	277,688	$	1,368,786

Income earned on securities for the three and six months ended June 30, 2022 and 2021, is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands)
Taxable
Available-for-sale	$	14,493	$	7,185	$	23,238	$	13,438
Held-to-maturity	6,448		—		6,783		—
Non-taxable
Available-for-sale	4,751		4,905		9,459		9,976
Held-to-maturity	2,974		—		2,973		—
Total	$	28,666	$	12,090	$	42,453	$	23,414

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Loans Receivable

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Loans Receivable

4. Loans Receivable

The various categories of loans receivable are summarized as follows:

	June 30, 2022		December 31, 2021
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	5,092,539	$	3,889,284
Construction/land development	2,595,384		1,850,050
Agricultural	329,106		130,674
Residential real estate loans
Residential 1-4 family	1,708,221		1,274,953
Multifamily residential	389,633		280,837
Total real estate	10,114,883		7,425,798
Consumer	1,106,343		825,519
Commercial and industrial	2,187,771		1,386,747
Agricultural	324,630		43,920
Other	190,246		154,105
Total loans receivable	13,923,873		9,836,089
Allowance for credit losses	(294,267)		(236,714)
Loans receivable, net	$	13,629,606	$	9,599,375

On April 1, 2022, the Company completed the acquisition of Happy. Including the effects of the known purchase accounting adjustments, as of the acquisition date, Happy had approximately $3.65 billion in loans.

During the three months ended June 30, 2022, the Company did not sell any guaranteed portions of certain SBA loans. During the six months ended June 30, 2022, the Company sold $2.8 million of the guaranteed portions of certain SBA loans, which resulted in a gain of approximately $95,000. During the three months ended June 30, 2021, the Company did not sell any guaranteed portions of certain SBA loans. During the six months ended June 30, 2021, the Company sold $11.1 million of the guaranteed portions of certain SBA loans, which resulted in a gain of approximately $1.1 million.

Mortgage loans held for sale of approximately $137.8 million and $72.7 million at June 30, 2022 and December 31, 2021, respectively, are included in residential 1-4 family loans. Mortgage loans held for sale are carried at the lower of cost or fair value, determined using an aggregate basis. Gains and losses resulting from sales of mortgage loans are recognized when the respective loans are sold to investors. Gains and losses are determined by the difference between the selling price and the carrying amount of the loans sold, net of discounts collected or paid. The Company obtains forward commitments to sell mortgage loans to reduce market risk on mortgage loans in the process of origination and mortgage loans held for sale. The forward commitments acquired by the Company for mortgage loans in process of origination are considered mandatory forward commitments. Because these commitments are structured on a mandatory basis, the Company is required to substitute another loan or to buy back the commitment if the original loan does not fund. These commitments are derivative instruments and their fair values at June 30, 2022 and December 31, 2021 were not material.

Purchased loans that have experienced more than insignificant credit deterioration since origination are purchase credit deteriorated (“PCD”) loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for impairment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses. The Company held approximately $152.3 million and $448,000 in PCD loans, as of June 30, 2022 and December 31, 2021, respectively. The balance consisted of $151.8 million resulting from the acquisition of Happy and $432,000 from the acquisition of LH-Finance.

A description of our accounting policies for loans, impaired loans and non-accrual loans are set forth in our 2021 Form 10-K filed with the SEC on February 24, 2022.

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Allowance for Credit Losses, Credit Quality and Other

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Allowance for Credit Losses, Credit Quality and Other

5. Allowance for Credit Losses, Credit Quality and Other

The Company uses the discounted cash flow (“DCF”) method to estimate expected losses for all of the Company’s loan pools. These pools are as follows: construction & land development; other commercial real estate; residential real estate; commercial & industrial; and consumer & other. The loan portfolio pools were selected in order to generally align with the loan categories specified in the quarterly call reports required to be filed with the Federal Financial Institutions Examination Council. For each of these loan pools, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers.

Management qualitatively adjusts model results for risk factors ("Q-Factors") that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These Q-Factors and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions.

Each year management evaluates the performance of the selected models used in the CECL calculation through backtesting. Based on the results of the testing, management determines if the various models produced accurate results compared to the actual losses incurred for the current economic environment. Management then determines if changes to the input assumptions and economic factors would produce a stronger overall calculation that is more responsive to changes in economic conditions. The Company continues to use regression analysis to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default for the changes in the economic factors for the loss driver segments. Based on this analysis during the second quarter of 2022, management determined the previously selected economic factors for the various loss driver segments were appropriate and no changes were necessary. The identified loss drivers by segment are included below as of both June 30, 2022 and December 31, 2021.

Loss Driver Segment	Call Report Segment(s)	Modeled Economic Factors
1-4 Family Construction	1a1	National Unemployment (%) & Housing Price Index (%)
All Other Construction	1a2	National Unemployment (%) & Gross Domestic Product (%)
1-4 Family Revolving HELOC & Junior Liens	1c1	National Unemployment (%) & Housing Price Index – CoreLogic (%)
1-4 Family Revolving HELOC & Junior Liens	1c2b	National Unemployment (%) & Gross Domestic Product (%)
1-4 Family Senior Liens	1c2a	National Unemployment (%) & Gross Domestic Product (%)
Multifamily	1d	Rental Vacancy Rate (%) & Housing Price Index – Case-Schiller (%)
Owner Occupied CRE	1e1	National Unemployment (%) & Gross Domestic Product (%)
Non-Owner Occupied CRE	1e2,1b,8	National Unemployment (%) & Gross Domestic Product (%)
Commercial & Industrial, Agricultural, Non-Depository Financial Institutions, Purchase/Carry Securities, Other	4a, 3, 9a, 9b1, 9b2, 10, Other	National Unemployment (%) & National Retail Sales (%)
Consumer Auto	6c	National Unemployment (%) & National Retail Sales (%)
Other Consumer	6b, 6d	National Unemployment (%) & National Retail Sales (%)
Other Consumer - SPF	6d	National Unemployment (%)

For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts to a historical loss rate over four quarters on a straight-line basis. Management leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics.

The combination of adjustments for credit expectations (default and loss) and time expectations prepayment, curtailment, and time to recovery produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (“NPV”). An allowance for credit loss is established for the difference between the instrument’s NPV and amortized cost basis.

Construction/Land Development and Other Commercial Real Estate Loans. We originate non-farm and non-residential loans (primarily secured by commercial real estate), construction/land development loans, and agricultural loans, which are generally secured by real estate located in our market areas. Our commercial mortgage loans are generally collateralized by first liens on real estate and amortized (where defined) over a 15 to 30 year period with balloon payments due at the end of one to five years. These loans are generally underwritten by assessing cash flow (debt service coverage), primary and secondary source of repayment, the financial strength of any guarantor, the strength of the tenant (if any), the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. Generally, we will loan up to 85% of the value of improved property, 65% of the value of raw land and 75% of the value of land to be acquired and developed. A first lien on the property and assignment of lease is required if the collateral is rental property, with second lien positions considered on a case-by-case basis.

Residential Real Estate Loans. We originate one to four family, residential mortgage loans generally secured by property located in our primary market areas. Residential real estate loans generally have a loan-to-value ratio of up to 90%. These loans are underwritten by giving consideration to many factors including the borrower’s ability to pay, stability of employment or source of income, debt-to-income ratio, credit history and loan-to-value ratio.

Commercial and Industrial Loans. Commercial and industrial loans are made for a variety of business purposes, including working capital, inventory, equipment and capital expansion. The terms for commercial loans are generally one to seven years Commercial loan applications must be supported by current financial information on the borrower and, where appropriate, by adequate collateral. Commercial loans are generally underwritten by addressing cash flow (debt service coverage), primary and secondary sources of repayment, the financial strength of any guarantor, the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. The loan to value ratio depends on the type of collateral. Generally, accounts receivable are financed at between 50% and 80% of accounts receivable less than 60 days past due. Inventory financing will range between 50% and 80% (with no work in process) depending on the borrower and nature of inventory. We require a first lien position for those loans.

Consumer & Other Loans. Our consumer & other loans are primarily composed of loans to finance USCG registered high-end sail and power boats. The performance of consumer & other loans will be affected by the local and regional economies as well as the rates of personal bankruptcies, job loss, divorce and other individual-specific characteristics.

Off-Balance Sheet Credit Exposures. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit loss on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The Company uses the DCF method to estimate expected losses for all of the Company’s off-balance sheet credit exposures through the use of the existing DCF models for the Company’s loan portfolio pools. The off-balance sheet credit exposures exhibit similar risk characteristics as loans currently in the Company’s loan portfolio.

ASC 326 requires that both a discount and allowance for credit losses be recorded on loans during an acquisition. The Company completed the acquisition of Happy on April 1, 2022. As a result, the Company recorded $4.3 million in net loan discounts and a $16.8 million increase in the allowance for credit losses related to PCD loans. In addition, the Company recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count" and an $11.4 million provision for credit losses on acquired unfunded commitments.

The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2022:

	Three Months Ended June 30, 2022
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	26,349	$	95,876	$	37,111	$	52,492	$	22,940	$	234,768
Allowance for credit losses on PCD loans - Happy acquisition	950		9,283		980		5,596		7		16,816
Loans charged off	—		—		(39)		—		(3,226)		(3,265)
Recoveries of loans previously charged off	302		52		23		221		180		778
Net loans recovered (charged off)	302		52		(16)		221		(3,046)		(2,487)
Provision for credit losses - acquired loans	7,205		18,711		7,380		11,303		571		45,170
Provision for credit losses	1,883		(8,727)		5,691		(1,303)		2,456		—
Balance, June 30	$	36,689	$	115,195	$	51,146	$	68,309	$	22,928	$	294,267

	Six Months Ended June 30, 2022
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	28,415	$	87,218	$	48,458	$	53,062	$	19,561	$	236,714
Allowance for credit losses on PCD loans - Happy acquisition	950		9,283		980		5,596		7		16,816
Loans charged off	—		—		(289)		(1,416)		(3,870)		(5,575)
Recoveries of loans previously charged off	317		78		49		330		368		1,142
Net loans recovered (charged off)	317		78		(240)		(1,086)		(3,502)		(4,433)
Provision for credit losses - acquired loans	7,205		18,711		7,380		11,303		571		45,170
Provision for credit losses	(198)		(95)		(5,432)		(566)		6,291		—
Balance, June 30	$	36,689	$	115,195	$	51,146	$	68,309	$	22,928	$	294,267

The following table presents the balances in the allowance for credit losses for the six-month period ended June 30, 2021 and the year ended December 31, 2021:

	Six Months Ended June 30, 2021 and Year Ended December 31, 2021
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	32,861	$	88,453	$	53,216	$	46,530	$	24,413	$	245,473
Loans charged off	—		(637)		(323)		(4,210)		(900)		(6,070)
Recoveries of loans previously charged    off	39		68		166		302		473		1,048
Net loans recovered (charged off)	39		(569)		(157)		(3,908)		(427)		(5,022)
Provision for credit loss - loans	(10,755)		5,243		(1,877)		9,660		(2,271)		—
Balance, June 30	22,145		93,127		51,182		52,282		21,715		240,451
Loans charged off	—		(9)		(222)		(4,032)		(1,328)		(5,591)
Recoveries of loans previously charged     off	19		717		517		289		312		1,854
Net loans recovered (charged off)	19		708		295		(3,743)		(1,016)		(3,737)
Provision for credit loss - loans	6,251		(6,617)		(3,019)		4,523		(1,138)		—
Balance, December 31	$	28,415	$	87,218	$	48,458	$	53,062	$	19,561	$	236,714

The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing as of June 30, 2022 and December 31, 2021:

	June 30, 2022
	Nonaccrual		Nonaccrual with Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	14,247	$	2,137	$	10,712
Construction/land development	1,050		—		246
Agricultural	194		—		711
Residential real estate loans
Residential 1-4 family	17,210		—		2,378
Multifamily residential	156		—		—
Total real estate	32,857		2,137		14,047
Consumer	1,321		—		43
Commercial and industrial	8,698		2,268		2,342
Agricultural & other	1,294		—		—
Total	$	44,170	$	4,405	$	16,432

	December 31, 2021
	Nonaccrual		Nonaccrual with Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	11,923	$	2,212	$	2,225
Construction/land development	1,445		—		—
Agricultural	897		—		—
Residential real estate loans
Residential 1-4 family	16,198		3,000		701
Multifamily residential	156		—		—
Total real estate	30,619		5,212		2,926
Consumer	1,648		—		2
Commercial and industrial	13,875		4,018		107
Agricultural & other	1,016		—		—
Total	$	47,158	$	9,230	$	3,035

The Company had $44.2 million and $47.2 million in nonaccrual loans for the periods ended June 30, 2022 and December 31, 2021, respectively. In addition, the Company had $16.4 million and $3.0 million in loans past due 90 days or more and still accruing for the periods ended June 30, 2022 and December 31, 2021, respectively.

The Company had $4.4 million and $9.2 million in nonaccrual loans with a specific reserve as of June 30, 2022 and December 31, 2021, respectively. The Company did not recognize any interest income on nonaccrual loans during the period ended June 30, 2022 or June 30, 2021.

The following table presents the amortized cost basis of collateral-dependent impaired loans by class of loans as of June 30, 2022 and December 31, 2021:

	June 30, 2022
	Commercial Real Estate		Residential Real Estate		Other
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	330,460	$	—	$	—
Construction/land development	1,296		—		—
Agricultural	905		—		—
Residential real estate loans
Residential 1-4 family	—		20,714		—
Multifamily residential	—		1,108		—
Total real estate	332,661		21,822		—
Consumer	—		—		1,376
Commercial and industrial	—		—		27,326
Agricultural & other	—		—		1,915
Total	$	332,661	$	21,822	$	30,617

	December 31, 2021
	Commercial Real Estate		Residential Real Estate		Other
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	283,919	$	—	$	—
Construction/land development	4,775		—		—
Agricultural	897		—		—
Residential real estate loans
Residential 1-4 family	—		19,775		—
Multifamily residential	—		1,300		—
Total real estate	289,591		21,075		—
Consumer	—		—		1,663
Commercial and industrial	—		—		18,193
Agricultural & other	—		—		1,016
Total	$	289,591	$	21,075	$	20,872

The Company had $385.1 million and $331.5 million in collateral-dependent impaired loans for the periods ended June 30, 2022 and December 31, 2021, respectively.

Loans that do not share risk characteristics are evaluated on an individual basis. For collateral-dependent impaired loans, excluding lodging and assisted living loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the fair value of the underlying collateral less estimated costs to sell. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan.

The following is an aging analysis for loans receivable as of June 30, 2022 and December 31, 2021:

	June 30, 2022
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	14,579	$	1,871	$	24,959	$	41,409	$	5,051,130	$	5,092,539	$	10,712
Construction/land development	3,553		2,145		1,296		6,994		2,588,390		2,595,384		246
Agricultural	4,106		337		905		5,348		323,758		329,106		711
Residential real estate loans
Residential 1-4 family	3,729		4,404		19,588		27,721		1,680,500		1,708,221		2,378
Multifamily residential	54		—		156		210		389,423		389,633		—
Total real estate	26,021		8,757		46,904		81,682		10,033,201		10,114,883		14,047
Consumer	701		122		1,364		2,187		1,104,156		1,106,343		43
Commercial and industrial	7,996		1,140		11,040		20,176		2,167,595		2,187,771		2,342
Agricultural & other	658		72		1,294		2,024		512,852		514,876		—
Total	$	35,376	$	10,091	$	60,602	$	106,069	$	13,817,804	$	13,923,873	$	16,432

	December 31, 2021
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	1,434	$	576	$	14,148	$	16,158	$	3,873,126	$	3,889,284	$	2,225
Construction/land development	92		22		1,445		1,559		1,848,491		1,850,050		—
Agricultural	—		472		897		1,369		129,305		130,674		—
Residential real estate loans
Residential 1-4 family	1,633		3,560		16,899		22,092		1,252,861		1,274,953		701
Multifamily residential	—		—		156		156		280,681		280,837		—
Total real estate	3,159		4,630		33,545		41,334		7,384,464		7,425,798		2,926
Consumer	60		205		1,650		1,915		823,604		825,519		2
Commercial and industrial	958		316		13,982		15,256		1,371,491		1,386,747		107
Agricultural and other	587		2		1,016		1,605		196,420		198,025		—
Total	$	4,764	$	5,153	$	50,193	$	60,110	$	9,775,979	$	9,836,089	$	3,035

Non-accruing loans at June 30, 2022 and December 31, 2021 were $44.2 million and $47.2 million, respectively.

Interest recognized on impaired loans, including those loans with a specific reserve, during the three and six months ended June 30, 2022 was approximately $4.8 million and $9.5 million, respectively. Interest recognized on impaired loans, including those loans with a specific reserve, during the three and six months ended June 30, 2021 was approximately $3.6 million and $7.1 million, respectively. The amount of interest recognized on impaired loans on the cash basis is not materially different than the accrual basis.

Credit Quality Indicators. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk rating of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) non-performing loans and (v) the general economic conditions in Arkansas, Florida, Texas, Alabama and New York.

The Company utilizes a risk rating matrix to assign a risk rating to each of its loans. Loans are rated on a scale from 1 to 8. Descriptions of the general characteristics of the 8 risk ratings are as follows:

•Risk rating 1 – Excellent. Loans in this category are to persons or entities of unquestionable financial strength, a highly liquid financial position, with collateral that is liquid and well margined. These borrowers have performed without question on past obligations, and the Bank expects their performance to continue. Internally generated cash flow covers current maturities of long-term debt by a substantial margin. Loans secured by bank certificates of deposit and savings accounts, with appropriate holds placed on the accounts, are to be rated in this category.

•Risk rating 2 – Good. These are loans to persons or entities with strong financial condition and above-average liquidity that have previously satisfactorily handled their obligations with the Bank. Collateral securing the Bank’s debt is margined in accordance with policy guidelines. Internally generated cash flow covers current maturities of long-term debt more than adequately. Unsecured loans to individuals supported by strong financial statements and on which repayment is satisfactory may be included in this classification.

•Risk rating 3 – Satisfactory. Loans to persons or entities with an average financial condition, adequate collateral margins, adequate cash flow to service long-term debt, and net worth comprised mainly of fixed assets are included in this category. These entities are minimally profitable now, with projections indicating continued profitability into the foreseeable future. Closely held corporations or businesses where a majority of the profits are withdrawn by the owners or paid in dividends are included in this rating category. Overall, these loans are basically sound.

•Risk rating 4 – Watch. Borrowers who have marginal cash flow, marginal profitability or have experienced an unprofitable year and a declining financial condition characterize these loans. The borrower has in the past satisfactorily handled debts with the Bank, but in recent months has either been late, delinquent in making payments, or made sporadic payments. While the Bank continues to be adequately secured, margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition. Other characteristics of borrowers in this class include inadequate credit information, weakness of financial statement and repayment capacity, but with collateral that appears to limit exposure.

•Risk rating 5 – Other Loans Especially Mentioned (“OLEM”). A loan criticized as OLEM has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. OLEM assets are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification.

•Risk rating 6 – Substandard. A loan classified as substandard is inadequately protected by the sound worth and paying capacity of the borrower or the collateral pledged. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual assets.

•Risk rating 7 – Doubtful. A loan classified as doubtful has all the weaknesses inherent in a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time; in fact, there is permanent impairment in the collateral securing the loan.

•Risk rating 8 – Loss. Assets classified as loss are considered uncollectible and of such little value that the continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may occur in the future. This classification is based upon current facts, not probabilities. Assets classified as loss should be charged-off in the period in which they became uncollectible.

The Company’s classified loans include loans in risk ratings 6, 7 and 8. Loans may be classified, but not considered impaired, due to one of the following reasons: (1) The Company has established minimum dollar amount thresholds for loan impairment testing. All loans over $2.0 million that are rated 5 – 8 are individually assessed for impairment on a quarterly basis. Loans rated 5 – 8 that fall under the threshold amount are not individually tested for impairment and therefore are not included in impaired loans; (2) of the loans that are above the threshold amount and tested for impairment, after testing, some are considered to not be impaired and are not included in impaired loans.

Based on the most recent analysis performed, the risk category of loans by class of loans as of June 30, 2022 and December 31, 2021 is as follows:

	June 30, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	245	$	—	$	161	$	—	$	406
Risk rating 2	—		—		—		122		—		4,188		—		4,310
Risk rating 3	168,978		512,718		295,392		299,302		354,655		970,977		219,357		2,821,379
Risk rating 4	185,605		310,791		184,980		177,523		400,884		464,893		134,386		1,859,062
Risk rating 5	8,462		—		4,181		14,622		36,376		232,972		95		296,708
Risk rating 6	876		—		12,785		29,675		5,630		61,442		266		110,674
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	363,921		823,509		497,338		521,489		797,545		1,734,633		354,104		5,092,539
Construction/land development
Risk rating 1	$	—	$	12	$	—	$	—	$	—	$	—	$	—	$	12
Risk rating 2	1,262		—		—		—		—		221		—		1,483
Risk rating 3	202,232		310,042		119,690		103,278		25,526		40,011		122,957		923,736
Risk rating 4	331,263		544,674		212,516		468,082		12,562		49,210		18,033		1,636,340
Risk rating 5	3,975		—		21,126		353		—		1,167		—		26,621
Risk rating 6	—		—		—		743		1		6,448		—		7,192
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total construction/land development	538,732		854,728		353,332		572,456		38,089		97,057		140,990		2,595,384
Agricultural
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		2,111		—		—		—		—		—		2,111
Risk rating 3	29,103		46,291		36,778		17,266		11,114		42,619		5,317		188,488
Risk rating 4	16,094		26,835		20,058		15,415		1,916		46,253		4,774		131,345
Risk rating 5	4,005		—		—		—		—		—		—		4,005
Risk rating 6	—		—		1,757		—		—		1,400		—		3,157
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	49,202		75,237		58,593		32,681		13,030		90,272		10,091		329,106
Total commercial real estate loans	$	951,855	$	1,753,474	$	909,263	$	1,126,626	$	848,664	$	1,921,962	$	505,185	$	8,017,029
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	118	$	37	$	155
Risk rating 2	—		—		—		—		—		115		—		115
Risk rating 3	228,300		254,988		183,584		122,093		105,793		361,623		105,987		1,362,368
Risk rating 4	25,964		41,184		66,127		12,130		18,418		71,178		70,261		305,262
Risk rating 5	2,734		180		—		3,066		501		1,557		186		8,224
Risk rating 6	—		2,180		2,413		3,825		2,414		17,814		3,450		32,096
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		1		—		1
Total residential 1-4 family	256,998		298,532		252,124		141,114		127,126		452,406		179,921		1,708,221

	June 30, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	3,583		18,192		17,855		14,667		16,076		55,525		39,631		165,529
Risk rating 4	8,034		29,526		121,156		23,503		12,113		15,609		270		210,211
Risk rating 5	—		—		—		—		3,183		7,984		—		11,167
Risk rating 6	—		—		—		747		—		1,823		—		2,570
Risk rating 7	—		—		—		—		—		156		—		156
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	11,617		47,718		139,011		38,917		31,372		81,097		39,901		389,633
Total real estate	$	1,220,470	$	2,099,724	$	1,300,398	$	1,306,657	$	1,007,162	$	2,455,465	$	725,007	$	10,114,883
Consumer
Risk rating 1	$	3,194	$	5,020	$	1,607	$	955	$	703	$	1,370	$	1,476	$	14,325
Risk rating 2	—		—		1		224		631		—		—		856
Risk rating 3	146,607		310,018		186,953		146,049		131,267		151,552		6,150		1,078,596
Risk rating 4	3,207		1,284		621		2,177		552		2,336		74		10,251
Risk rating 5	33		12		110		—		12		559		—		726
Risk rating 6	17		71		30		172		—		1,215		7		1,512
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		77		—		77
Total consumer	153,058		316,405		189,322		149,577		133,165		157,109		7,707		1,106,343
Commercial and industrial
Risk rating 1	$	920	$	32,090	$	6,644	$	304	$	29	$	21,677	$	7,979	$	69,643
Risk rating 2	170		307		81		197		—		254		546		1,555
Risk rating 3	176,716		166,123		89,398		79,402		48,010		95,750		282,994		938,393
Risk rating 4	26,642		231,306		49,175		123,869		80,950		57,810		494,944		1,064,696
Risk rating 5	283		6,156		28,092		361		7,239		9,480		806		52,417
Risk rating 6	18		577		12,237		4,462		24,553		11,165		6,122		59,134
Risk rating 7	—		—		—		—		1,634		299		—		1,933
Risk rating 8	—		—		—		—		—		—		—		—
Total commercial and industrial	204,749		436,559		185,627		208,595		162,415		196,435		793,391		2,187,771
Agricultural and other
Risk rating 1	$	136	$	727	$	114	$	—	$	—	$	5	$	746	$	1,728
Risk rating 2	73		123		—		3,467		34		968		1,795		6,460
Risk rating 3	107,154		41,975		32,179		6,170		10,553		48,565		123,477		370,073
Risk rating 4	8,981		18,330		3,635		13,824		2,101		11,582		75,742		134,195
Risk rating 5	—		8		203		—		—		1,311		—		1,522
Risk rating 6	—		57		194		16		—		631		—		898
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	116,344		61,220		36,325		23,477		12,688		63,062		201,760		514,876
Total	$	1,694,621	$	2,913,908	$	1,711,672	$	1,688,306	$	1,315,430	$	2,872,071	$	1,727,865	$	13,923,873

	December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	284,127		281,982		266,990		341,642		195,301		891,035		194,640		2,455,717
Risk rating 4	111,697		32,788		115,989		301,520		90,747		345,254		90,028		1,088,023
Risk rating 5	—		10,930		2,239		23,117		49,926		189,038		—		275,250
Risk rating 6	—		—		23,723		2,224		11,751		32,372		224		70,294
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	395,824		325,700		408,941		668,503		347,725		1,457,699		284,892		3,889,284
Construction/land development
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		231		—		231
Risk rating 3	301,719		183,715		108,491		23,574		13,760		41,860		149,433		822,552
Risk rating 4	226,230		217,267		448,899		33,617		45,679		38,122		7,297		1,017,111
Risk rating 5	—		—		388		—		—		1,174		176		1,738
Risk rating 6	—		134		825		3		—		7,456		—		8,418
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total construction/land development	527,949		401,116		558,603		57,194		59,439		88,843		156,906		1,850,050
Agricultural
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	21,480		27,931		7,768		6,564		5,103		21,689		7,026		97,561
Risk rating 4	4,305		964		365		970		655		22,143		2,065		31,467
Risk rating 5	—		166		—		—		—		—		—		166
Risk rating 6	—		44		—		—		—		1,436		—		1,480
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	25,785		29,105		8,133		7,534		5,758		45,268		9,091		130,674
Total commercial real estate loans	$	949,558	$	755,921	$	975,677	$	733,231	$	412,922	$	1,591,810	$	450,889	$	5,870,008
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	76	$	89	$	165
Risk rating 2	—		—		—		—		—		29		—		29
Risk rating 3	210,970		147,523		119,861		94,848		82,474		296,687		85,836		1,038,199
Risk rating 4	8,885		3,397		56,839		16,887		21,874		53,578		36,642		198,102
Risk rating 5	—		—		3,065		1,220		582		1,366		193		6,426
Risk rating 6	1,136		2,252		2,432		2,063		1,263		16,305		6,580		32,031
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		1		—		1
Total residential 1-4 family	220,991		153,172		182,197		115,018		106,193		368,042		129,340		1,274,953

	December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	11,898		5,211		34,492		17,375		9,430		43,804		3,583		125,793
Risk rating 4	3,755		44,294		30,060		3,412		2,981		18,805		33,723		137,030
Risk rating 5	—		—		—		7,591		8,105		—		—		15,696
Risk rating 6	—		—		—		—		890		1,428		—		2,318
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	15,653		49,505		64,552		28,378		21,406		64,037		37,306		280,837
Total real estate	$	1,186,202	$	958,598	$	1,222,426	$	876,627	$	540,521	$	2,023,889	$	617,535	$	7,425,798
Consumer
Risk rating 1	$	4,441	$	1,799	$	1,237	$	920	$	226	$	1,383	$	1,893	$	11,899
Risk rating 2	—		—		45		639		—		8		—		692
Risk rating 3	221,986		173,511		132,148		109,810		67,992		92,076		1,098		798,621
Risk rating 4	3,547		923		2,944		1,776		158		2,641		79		12,068
Risk rating 5	—		116		—		15		—		131		—		262
Risk rating 6	69		34		39		117		—		1,711		7		1,977
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total consumer	230,043		176,383		136,413		113,277		68,376		97,950		3,077		825,519
Commercial and industrial
Risk rating 1	$	99,579	$	12,752	$	350	$	118	$	102	$	21,436	$	9,851	$	144,188
Risk rating 2	175		16		—		—		66		276		168		701
Risk rating 3	125,071		59,056		77,130		67,944		34,733		42,905		145,247		552,086
Risk rating 4	244,927		35,350		89,558		91,840		23,616		34,566		88,750		608,607
Risk rating 5	6,185		609		480		8,258		5,712		2,851		582		24,677
Risk rating 6	492		15,377		5,913		24,941		5,477		2,233		342		54,775
Risk rating 7	—		—		—		1,696		—		—		—		1,696
Risk rating 8	—		—		—		—		—		16		1		17
Total commercial and industrial	476,429		123,160		173,431		194,797		69,706		104,283		244,941		1,386,747
Agricultural and other
Risk rating 1	$	5,042	$	—	$	40	$	—	$	—	$	110	$	552	$	5,744
Risk rating 2	—		—		3,467		—		—		909		983		5,359
Risk rating 3	54,534		44,030		5,158		7,092		2,009		46,570		8,750		168,143
Risk rating 4	1,544		218		154		1,590		1,226		1,224		10,842		16,798
Risk rating 5	—		—		—		—		—		1,297		—		1,297
Risk rating 6	53		—		23		13		33		562		—		684
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	61,173		44,248		8,842		8,695		3,268		50,672		21,127		198,025
Total	$	1,953,847	$	1,302,389	$	1,541,112	$	1,193,396	$	681,871	$	2,276,794	$	886,680	$	9,836,089

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company also evaluates credit quality based on the aging status of the loan, which was previously presented and by payment activity. The following tables present the amortized cost of performing and nonperforming loans as of June 30, 2022 and December 31, 2021.

	June 30, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	363,921	$	823,509	$	483,438	$	476,985	$	774,705	$	1,485,540	$	353,981	$	4,762,079
Non-performing	—		—		13,900		44,504		22,840		249,093		123		330,460
Total non-farm/non-residential	363,921		823,509		497,338		521,489		797,545		1,734,633		354,104		5,092,539
Construction/land development
Performing	$	538,732	$	854,677	$	353,332	$	571,712	$	37,933	$	96,712	$	140,990	$	2,594,088
Non-performing	—		51		—		744		156		345		—		1,296
Total construction/ land development	538,732		854,728		353,332		572,456		38,089		97,057		140,990		2,595,384
Agricultural
Performing	$	49,202	$	75,237	$	58,593	$	32,681	$	13,030	$	89,367	$	10,091	$	328,201
Non-performing	—		—		—		—		—		905		—		905
Total agricultural	49,202		75,237		58,593		32,681		13,030		90,272		10,091		329,106
Total commercial real estate loans	$	951,855	$	1,753,474	$	909,263	$	1,126,626	$	848,664	$	1,921,962	$	505,185	$	8,017,029
Residential real estate loans
Residential 1-4 family
Performing	$	256,998	$	297,261	$	249,716	$	137,945	$	125,699	$	442,616	$	177,272	$	1,687,507
Non-performing	—		1,271		2,408		3,169		1,427		9,790		2,649		20,714
Total residential 1-4 family	256,998		298,532		252,124		141,114		127,126		452,406		179,921		1,708,221
Multifamily residential
Performing	$	11,617	$	47,718	$	139,011	$	38,917	$	31,372	$	79,989	$	39,901	$	388,525
Non-performing	—		—		—		—		—		1,108		—		1,108
Total multifamily residential	11,617		47,718		139,011		38,917		31,372		81,097		39,901		389,633
Total real estate	$	1,220,470	$	2,099,724	$	1,300,398	$	1,306,657	$	1,007,162	$	2,455,465	$	725,007	$	10,114,883
Consumer
Performing	$	153,058	$	316,350	$	189,302	$	149,430	$	133,165	$	155,962	$	7,700	$	1,104,967
Non-performing	—		55		20		147		—		1,147		7		1,376
Total consumer	153,058		316,405		189,322		149,577		133,165		157,109		7,707		1,106,343
Commercial and industrial
Performing	$	204,749	$	435,803	$	182,667	$	204,643	$	153,210	$	192,144	$	787,229	$	2,160,445
Non-performing	—		756		2,960		3,952		9,205		4,291		6,162		27,326
Total commercial and industrial	204,749		436,559		185,627		208,595		162,415		196,435		793,391		2,187,771
Agricultural and other
Performing	$	116,344	$	61,220	$	36,122	$	23,461	$	12,688	$	61,852	$	201,274	$	512,961
Non-performing	—		—		203		16		—		1,210		486		1,915
Total agricultural and other	116,344		61,220		36,325		23,477		12,688		63,062		201,760		514,876
Total	$	1,694,621	$	2,913,908	$	1,711,672	$	1,688,306	$	1,315,430	$	2,872,071	$	1,727,865	$	13,923,873

	December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	395,824	$	315,447	$	394,061	$	648,351	$	298,086	$	1,268,731	$	284,865	$	3,605,365
Non-performing	—		10,253		14,880		20,152		49,639		188,968		27		283,919
Total non-farm/non-residential	395,824		325,700		408,941		668,503		347,725		1,457,699		284,892		3,889,284
Construction/land development
Performing	$	527,949	$	400,982	$	557,778	$	57,024	$	59,439	$	85,197	$	156,906	$	1,845,275
Non-performing	—		134		825		170		—		3,646		—		4,775
Total construction/land development	527,949		401,116		558,603		57,194		59,439		88,843		156,906		1,850,050
Agricultural
Performing	$	25,785	$	28,939	$	8,133	$	7,534	$	5,758	$	44,537	$	9,091	$	129,777
Non-performing	—		166		—		—		—		731		—		897
Total agricultural	25,785		29,105		8,133		7,534		5,758		45,268		9,091		130,674
Total commercial real estate loans	$	949,558	$	755,921	$	975,677	$	733,231	$	412,922	$	1,591,810	$	450,889	$	5,870,008
Residential real estate loans
Residential 1-4 family
Performing	$	220,380	$	151,459	$	180,113	$	113,845	$	105,129	$	360,700	$	123,552	$	1,255,178
Non-performing	611		1,713		2,084		1,173		1,064		7,342		5,788		19,775
Total residential 1-4 family	220,991		153,172		182,197		115,018		106,193		368,042		129,340		1,274,953
Multifamily residential
Performing	$	15,653	$	49,505	$	64,552	$	28,378	$	21,406	$	62,737	$	37,306	$	279,537
Non-performing	—		—		—		—		—		1,300		—		1,300
Total multifamily residential	15,653		49,505		64,552		28,378		21,406		64,037		37,306		280,837
Total real estate	$	1,186,202	$	958,598	$	1,222,426	$	876,627	$	540,521	$	2,023,889	$	617,535	$	7,425,798
Consumer
Performing	$	229,986	$	176,355	$	136,403	$	113,160	$	68,376	$	96,506	$	3,070	$	823,856
Non-performing	57		28		10		117		—		1,444		7		1,663
Total consumer	230,043		176,383		136,413		113,277		68,376		97,950		3,077		825,519
Commercial and industrial
Performing	$	476,424	$	122,999	$	168,984	$	185,569	$	66,928	$	103,391	$	244,259	$	1,368,554
Non-performing	5		161		4,447		9,228		2,778		892		682		18,193
Total commercial and industrial	476,429		123,160		173,431		194,797		69,706		104,283		244,941		1,386,747
Agricultural and other
Performing	$	61,173	$	44,248	$	8,819	$	8,682	$	3,235	$	49,725	$	21,127	$	197,009
Non-performing	—		—		23		13		33		947		—		1,016
Total agricultural and other	61,173		44,248		8,842		8,695		3,268		50,672		21,127		198,025
Total	$	1,953,847	$	1,302,389	$	1,541,112	$	1,193,396	$	681,871	$	2,276,794	$	886,680	$	9,836,089

The Company had approximately $13.8 million or 83 total revolving loans convert to term loans for the six months ended June 30, 2022 compared to $21.7 million or 140 total revolving loans convert to term loans for the six months ended June 30, 2021. These loans were considered immaterial for vintage disclosure inclusion.

The following is a presentation of troubled debt restructurings (“TDRs”) by class as of June 30, 2022 and December 31, 2021:

	June 30, 2022
	Number of Loans	Pre- Modification Outstanding Balance		Rate Modification		Term Modification		Rate & Term Modification		Post- Modification Outstanding Balance
	(Dollars in thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	11	$	6,085	$	3,404	$	608	$	82	$	4,094
Construction/land development	1	216		199		—		—		199
Agricultural	—	—		—		—		—		—
Residential real estate loans
Residential 1-4 family	14	2,166		660		112		299		1,071
Multifamily residential	1	1,130		952		—		—		952
Total real estate	27	9,597		5,215		720		381		6,316
Consumer	4	23		12		—		3		15
Commercial and industrial	10	2,099		152		41		74		267
Total	41	$	11,719	$	5,379	$	761	$	458	$	6,598

	December 31, 2021
	Number of Loans	Pre- Modification Outstanding Balance		Rate Modification		Term Modification		Rate & Term Modification		Post- Modification Outstanding Balance
	(Dollars in thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	12	$	6,119	$	3,581	$	623	$	85	$	4,289
Construction/land development	2	240		210		1		—		211
Agricultural	1	282		262		—		—		262
Residential real estate loans
Residential 1-4 family	15	2,328		844		117		332		1,293
Multifamily residential	1	1,130		1,144		—		—		1,144
Total real estate	31	10,099		6,041		741		417		7,199
Consumer	4	22		13		—		3		16
Commercial and industrial	9	2,353		172		65		74		311
Total	44	$	12,474	$	6,226	$	806	$	494	$	7,526

The following is a presentation of TDRs on non-accrual status as of June 30, 2022 and December 31, 2021 because they are not in compliance with the modified terms:

	June 30, 2022			December 31, 2021
	Number of Loans	Recorded Balance		Number of Loans	Recorded Balance
	(Dollars in thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	1	$	5	2	$	7
Construction/land development	1	199		1	210
Agricultural	—	—		1	262
Residential real estate loans
Residential 1-4 family	5	352		5	388
Total real estate	7	556		9	867
Consumer	3	3		3	3
Commercial and industrial	8	176		6	206
Total	18	$	735	18	$	1,076

The following is a presentation of total foreclosed assets as of June 30, 2022 and December 31, 2021:

	June 30, 2022		December 31, 2021
	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	49	$	536
Construction/land development	55		834
Residential real estate loans
Residential 1-4 family	269		260
Total foreclosed assets held for sale	$	373	$	1,630

The Company has purchased loans for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. As of June 30, 2022 and December 31, 2021, the balance of purchase credit deteriorated loans was approximately $152.3 million and $448,000, respectively. This balance, as of June 30, 2022, consisted of $151.8 million resulting from the acquisition of Happy and $432,000 from the acquisition of LH-Finance

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Goodwill and Core Deposits and Other Intangibles

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Core Deposits and Other Intangibles

6. Goodwill and Core Deposits and Other Intangibles

Changes in the carrying amount and accumulated amortization of the Company’s goodwill and core deposits and other intangibles at June 30, 2022 and December 31, 2021, were as follows:

	June 30, 2022		December 31, 2021
	(In thousands)
Goodwill
Balance, beginning of period	$	973,025	$	973,025
Acquisition of Happy Bancshares	425,375		—
Balance, end of period	$	1,398,400	$	973,025

	June 30, 2022		December 31, 2021
	(In thousands)
Core Deposit and Other Intangibles
Balance, beginning of period	$	25,045	$	30,728
Acquisition of Happy Bancshares	42,263		—
Amortization expense	(3,898)		(2,842)
Balance, June 30	63,410		27,886
Amortization expense			(2,841)
Balance, end of year			$	25,045

The carrying basis and accumulated amortization of core deposits and other intangibles at June 30, 2022 and December 31, 2021 were:

	June 30, 2022		December 31, 2021
	(In thousands)
Gross carrying basis	$	128,888	$	86,625
Accumulated amortization	(65,478)		(61,580)
Net carrying amount	$	63,410	$	25,045

Core deposit and other intangible amortization expense was approximately $2.5 million and $1.4 million for the three months ended June 30, 2022 and 2021, respectively. Core deposit and other intangible amortization expense was approximately $3.9 million and $2.8 million for the six months ended June 30, 2022 and 2021, respectively. The Company’s estimated amortization expense of core deposits and other intangibles for each of the years 2022 through 2026 is approximately: 2022 – $8.9 million; 2023 – $9.7 million; 2024 – $8.5 million; 2025 – $8.1 million; 2026 – $7.8 million.

The carrying amount of the Company’s goodwill was $1.40 billion and $973.0 million at June 30, 2022 and December 31, 2021, respectively. Goodwill is tested annually for impairment during the fourth quarter or more often if events and circumstances indicate there may be an impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements.

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Other Assets

6 Months Ended

Jun. 30, 2022

Other Assets [Abstract]

Other Assets

7. Other Assets

Other assets consist primarily of equity securities without a readily determinable fair value and other miscellaneous assets. As of June 30, 2022 and December 31, 2021, other assets were $271.0 million and $177.0 million, respectively.

The Company has equity securities without readily determinable fair values such as stock holdings in the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“Federal Reserve”) which are outside the scope of ASC Topic 321, Investments – Equity Securities (“ASC Topic 321”). These equity securities without a readily determinable fair value were $112.1 million and $88.2 million at June 30, 2022 and December 31, 2021, and are accounted for at cost.

The Company has equity securities such as stock holdings in First National Bankers’ Bank and other miscellaneous holdings which are accounted for under ASC Topic 321. These equity securities without a readily determinable fair value were $70.3 million and $36.4 million at June 30, 2022 and December 31, 2021. There were no observable transactions during the period that would indicate a material change in fair value. Therefore, these investments were accounted for at cost, less impairment.

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Deposits

6 Months Ended

Jun. 30, 2022

Deposits [Abstract]

Deposits

8. Deposits

The aggregate amount of time deposits with a minimum denomination of $250,000 was $353.2 million and $321.6 million at June 30, 2022 and December 31, 2021. The aggregate amount of time deposits with a minimum denomination of $100,000 was $688.2 million and $537.4 million at June 30, 2022 and December 31, 2021, respectively. Interest expense applicable to certificates in excess of $100,000 totaled $661,000 and $2.0 million for the three months ended June 30, 2022 and 2021. Interest expense applicable to certificates in excess of $100,000 totaled $1.4 million and $4.4 million for the six months ended June 30, 2022 and 2021. As of June 30, 2022 and December 31, 2021, brokered deposits were $626.9 million and $625.7 million, respectively.

Deposits totaling approximately $2.69 billion and $1.91 billion at June 30, 2022 and December 31, 2021, respectively, were public funds obtained primarily from state and political subdivisions in the United States.

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Securities Sold Under Agreements to Repurchase

6 Months Ended

Jun. 30, 2022

Securities Sold under Agreements to Repurchase [Abstract]

Securities Sold Under Agreements to Repurchase

9. Securities Sold Under Agreements to Repurchase

At June 30, 2022 and December 31, 2021, securities sold under agreements to repurchase totaled $118.6 million and $140.9 million, respectively. For the three-month periods ended June 30, 2022 and 2021, securities sold under agreements to repurchase daily weighted-average totaled $123.1 million and $157.6 million, respectively. For the six-month periods ended June 30, 2022 and 2021, securities sold under agreements to repurchase daily weighted-average totaled $130.2 million and $158.6 million, respectively.

The remaining contractual maturity of securities sold under agreements to repurchase in the consolidated balance sheets as of June 30, 2022 and December 31, 2021 is presented in the following tables:

	June 30, 2022
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	6,540	$	—	$	—	$	—	$	6,540
Mortgage-backed securities	3,300		—		—		—		3,300
State and political subdivisions	105,319		—		—		—		105,319
Other securities	3,414		—		—		—		3,414
Total borrowings	$	118,573	$	—	$	—	$	—	$	118,573

	December 31, 2021
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	8,433	$	—	$	—	$	—	$	8,433
Mortgage-backed securities	7,920		—		—		—		7,920
State and political subdivisions	122,173		—		—		—		122,173
Other securities	2,360		—		—		—		2,360
Total borrowings	$	140,886	$	—	$	—	$	—	$	140,886

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FHLB and Other Borrowed Funds

6 Months Ended

Jun. 30, 2022

Advances from Federal Home Loan Banks [Abstract]

FHLB and Other Borrowed Funds

10. FHLB and Other Borrowed Funds

The Company’s FHLB borrowed funds, which are secured by our loan portfolio, were $400.0 million at both June 30, 2022 and December 31, 2021. The Company had no other borrowed funds as of June 30, 2022 or December 31, 2021. At June 30, 2022 and December 31, 2021, all of the outstanding balances were classified as long-term advances. The FHLB advances mature in 2033 with fixed interest rates ranging from 1.76% to 2.26%. Expected maturities could differ from contractual maturities because FHLB may have the right to call or the Company may have the right to prepay certain obligations.

Additionally, the Company had $1.09 billion and $1.07 billion at June 30, 2022 and December 31, 2021, in letters of credit under a FHLB blanket borrowing line of credit, which are used to collateralize public deposits at June 30, 2022 and December 31, 2021, respectively.

The parent company took out a $20.0 million line of credit for general corporate purposes during 2015. The balance on this line of credit at June 30, 2022 and December 31, 2021 was

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Subordinated Debentures

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Subordinated Debentures

11. Subordinated Debentures

Subordinated debentures at June 30, 2022 and December 31, 2021 consisted of subordinated debt securities and guaranteed payments on trust preferred securities with the following components:

	As of June 30, 2022		As of December 31, 2021
	(In thousands)
Trust preferred securities
Subordinated debentures, issued in 2004, due 2034, floating rate of 4.00% above the three-month LIBOR rate, reset quarterly, currently callable without penalty	$	2,165	$	—
Subordinated debentures, issued in 2003, due 2034, floating rate of 2.95% above the three-month LIBOR rate, reset quarterly, currently callable without penalty	10,310		—
Subordinated debentures, issued in 2005, due 2035, floating rate of 2.15% above the three-month LIBOR rate, reset quarterly, currently callable without penalty	5,155		4,501
Subordinated debentures, issued in 2006, due 2036, fixed rate of 6.75% during the first five years and at a floating rate of 1.85% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		3,093
Subordinated debentures, issued in 2004, due 2034, fixed rate of 6.00% during the first five years and at a floating rate of 2.00% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		15,464
Subordinated debentures, issued in 2005, due 2035, fixed rate of 5.84% during the first five years and at a floating rate of 1.45% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		25,774
Subordinated debentures, issued in 2004, due 2034, fixed rate of 4.29% during the first five years and at a floating rate of 2.50% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		16,495
Subordinated debentures, issued in 2006, due 2036, fixed rate of 7.38% during the first five years and at a floating rate of 1.62% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		5,942
Subordinated debt securities
Subordinated notes, net of issuance costs, issued in 2020, due 2030, fixed rate of 5.50% during the first five years and at a floating rate of 534.5 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2025 without penalty	144,063		—
Subordinated notes, net of issuance costs, issued in 2022, due 2032, fixed rate of 3.125% during the first five years and at a floating rate of 182 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2027 without penalty	296,762		—
Subordinated notes, net of issuance costs, issued in 2017, due 2027, fixed rate of 5.625% during the first five years and at a floating rate of 3.575% above the then three-month LIBOR rate, reset quarterly, thereafter, callable in 2022 without penalty	—		299,824
Total	$	458,455	$	371,093

Trust Preferred Securities. The Company holds trust preferred securities with a face amount of $17.6 million which are currently callable without penalty based on the terms of the specific agreements. The trust preferred securities are tax-advantaged issues that previously qualified for Tier 1 capital treatment subject to certain limitations. However, now that the Company has exceeded $15 billion in assets and has completed the acquisition of Happy Bancshares, the Tier 1 treatment of the Company’s outstanding trust preferred securities has been eliminated, and these securities are now treated as Tier 2 capital. Distributions on these securities are included in interest expense. Each of the trusts is a statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in the Company’s subordinated debentures, the sole asset of each trust. The trust preferred securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the subordinated debentures held by the trust. The Company wholly owns the common securities of each trust. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related subordinated debentures. The Company’s obligations under the subordinated securities and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each respective trust’s obligations under the trust securities issued by each respective trust. The Company has received approval from the Federal Reserve to redeem the trust preferred securities, and is in the process of redeeming all of its trust preferred securities.

On April 1, 2022, the Company acquired $23.2 million in trust preferred securities from Happy which were currently callable without penalty based on the terms of the specific agreements. During the quarter, $10.7 million of these trust preferred securities were paid off without penalty. As of June 30, 2022, the Company held a face amount of $12.5 million in trust preferred securities acquired from Happy.

During the second quarter of 2022, the Company chose to redeem an additional $68.1 million in trust preferred securities held prior to the acquisition of Happy. As of June 30, 2022, the Company's remaining balance of trust preferred securities which were held prior to the acquisition of Happy was $5.1 million.

Subordinated Debt Securities. On April 1, 2022, the Company acquired $140.0 million of subordinated notes from Happy. These notes have a maturity date of July 31, 2030 and carry a fixed rate of 5.500% for the first five years. Thereafter, the notes bear interest at 3-month Secured Overnight Funding Rate (SOFR) plus 5.345% resetting quarterly. Interest payments are due semi-annually and the notes include a right of prepayment without penalty on or after July 31, 2025.

On January 18, 2022, the Company completed an underwritten public offering of $300.0 million in aggregate principal amount of its 3.125% Fixed-to-Floating Rate Subordinated Notes due 2032 (the “2032 Notes”) for net proceeds, after underwriting discounts and issuance costs of approximately $296.4 million. The 2032 Notes are unsecured, subordinated debt obligations of the Company and will mature on January 30, 2032. From and including the date of issuance to, but excluding January 30, 2027 or the date of earlier redemption, the 2032 Notes will bear interest at an initial rate of 3.125% per annum, payable in arrears on January 30 and July 30 of each year. From and including January 30, 2027 to, but excluding the maturity date or earlier redemption, the 2032 Notes will bear interest at a floating rate equal to the Benchmark rate (which is expected to be Three-Month Term SOFR), each as defined in and subject to the provisions of the applicable supplemental indenture for the 2032 Notes, plus 182 basis points, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, commencing on April 30, 2027.

The Company may, beginning with the interest payment date of January 30, 2027, and on any interest payment date thereafter, redeem the 2032 Notes, in whole or in part, subject to prior approval of the Federal Reserve if then required, at a redemption price equal to 100% of the principal amount of the 2032 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. The Company may also redeem the 2032 Notes at any time, including prior to January 30, 2027, at the Company’s option, in whole but not in part, subject to prior approval of the Federal Reserve if then required, if certain events occur that could impact the Company’s ability to deduct interest payable on the 2032 Notes for U.S. federal income tax purposes or preclude the 2032 Notes from being recognized as Tier 2 capital for regulatory capital purposes, or if the Company is required to register as an investment company under the Investment Company Act of 1940, as amended. In each case, the redemption would be at a redemption price equal to 100% of the principal amount of the 2032 Notes plus any accrued and unpaid interest to, but excluding, the redemption date.

On April 3, 2017, the Company completed an underwritten public offering of $300.0 million in aggregate principal amount of its 5.625% Fixed-to-Floating Rate Subordinated Notes due 2027 (the “2027 Notes”) for net proceeds, after underwriting discounts and issuance costs, of approximately $297.0 million. The 2027 Notes are unsecured, subordinated debt obligations and mature on April 15, 2027. From and including the date of issuance to, but excluding April 15, 2022, the 2027 Notes bear interest at an initial rate of 5.625% per annum. From and including April 15, 2022 to, but excluding the maturity date or earlier redemption, the 2027 Notes bear interest at a floating rate equal to three-month LIBOR as calculated on each applicable date of determination plus a spread of 3.575%; provided, however, that in the event three-month LIBOR is less than zero, then three-month LIBOR shall be deemed to be zero.

The Company, beginning with the interest payment date of April 15, 2022, and on any interest payment date thereafter, was permitted to redeem the 2027 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2027 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. On April 15, 2022, the Company completed the payoff of the 2027 Notes in aggregate principal amount of $300.0 million. Each 2027 Note was redeemed pursuant to the terms of the Subordinated Indenture, as supplemented by the First Supplemental Indenture, each dated as of April 3, 2017, between the Company and U.S. Bank Trust Company, National Association, the Trustee for the 2027 Notes, at the redemption price of 100% of its principal amount, plus accrued and unpaid interest to, but excluding, the Redemption Date.

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Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

The following is a summary of the components of the provision for income taxes for the three and six months ended June 30, 2022 and 2021:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands)
Current:
Federal	$	19,242	$	15,175	$	33,207	$	38,058
State	5,077		5,024		8,761		12,599
Total current	24,319		20,199		41,968		50,657
Deferred:
Federal	(16,636)		3,661		(14,752)		2,488
State	(4,389)		1,212		(3,893)		823
Total deferred	(21,025)		4,873		(18,645)		3,311
Income tax expense	$	3,294	$	25,072	$	23,323	$	53,968

The reconciliation between the statutory federal income tax rate and effective income tax rate is as follows for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Statutory federal income tax rate	21.00	%	21.00	%	21.00	%	21.00	%
Effect of non-taxable interest income	(8.30)		(1.03)		(2.53)		(0.97)
Stock compensation	0.90		0.16		0.58		0.25
State income taxes, net of federal benefit	(4.38)		4.18		2.56		4.22
Executive officer compensation & other	7.87		(0.24)		0.77		(0.48)
Effective income tax rate	17.09	%	24.07	%	22.38	%	24.02	%

The types of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:

	June 30, 2022		December 31, 2021
	(In thousands)
Deferred tax assets:
Allowance for credit losses	$	84,584	$	68,644
Deferred compensation	5,310		5,342
Stock compensation	6,211		5,044
Non-accrual interest income	1,914		694
Real estate owned	109		109
Unrealized loss on investment securities, available-for-sale	72,534		—
Loan discounts	8,550		4,169
Tax basis premium/discount on acquisitions	2,216		3,220
Investments	34,527		263
Deposits	207		—
Other	17,392		5,283
Gross deferred tax assets	233,554		92,768
Deferred tax liabilities:
Accelerated depreciation on premises and equipment	4,095		761
Unrealized gain on securities	—		4,220
Core deposit intangibles	15,360		5,736
FHLB dividends	2,782		2,820
Other	2,732		941
Gross deferred tax liabilities	24,969		14,478
Net deferred tax assets	$	208,585	$	78,290

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and the states of Alabama, Arizona, Arkansas, California, Florida, Georgia, Illinois, Kansas, Kentucky, Maryland, Mississippi, Missouri, New Hampshire, New Jersey, New York, New Mexico, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas and Wisconsin. The Company is no longer subject to U.S. federal and state tax examinations by tax authorities for years before 2018.

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Common Stock, Compensation Plans and Other

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Common Stock, Compensation Plans and Other

13. Common Stock, Compensation Plans and Other

Common Stock

The Company’s Restated Articles of Incorporation, as amended, authorize the issuance of up to 300,000,000 shares of common stock, par value $0.01 per share.

The Company also has the authority to issue up to 5,500,000 shares of preferred stock, par value $0.01 per share under the Company’s Restated Articles of Incorporation, as amended.

Stock Repurchases

On January 22, 2021, the Company’s Board of Directors authorized the repurchase of up to an additional 20,000,000 shares of its common stock under the previously approved stock repurchase program. During the first six months of 2022, the Company repurchased a total of 1,212,732 shares with a weighted-average stock price of $21.89 per share. Shares repurchased under the program as of June 30, 2022 since its inception total 18,874,067 shares. The remaining balance available for repurchase is 20,877,933 shares at June 30, 2022.

Stock Compensation Plans

On January 21, 2022, the Company’s Board of Directors adopted, and on April 21, 2022, the Company's shareholders approved, the Home BancShares, Inc. 2022 Equity Incentive Plan (the “2022 Plan”). The 2022 Plan replaced the Company’s Amended and Restated 2006 Stock Option and Performance Incentive Plan (the “2006 Plan” and, together with the 2022 Plan, the “Plans”), which expired on February 27, 2022. The purpose of the Plans is to attract and retain highly qualified officers, directors, key employees, and other persons, and to motivate those persons to improve the Company’s business results. As of June 30, 2022, the maximum total number of shares of the Company’s common stock available for issuance under the 2022 Plan, subject to shareholder approval of the Plan, was 14,788,000 shares (representing 13,288,000 shares approved for issuance under the 2006 Plan plus 1,500,000 shares added upon adoption of the 2022 Plan). At June 30, 2022, the Company had 2,617,211 shares of common stock available for future grants under 2022 Plan, subject to shareholder approval of the 2022 Plan. As of June 30, 2022, a total of 5,761,527 shares of common stock were reserved for issuance pursuant to the Plans.

The intrinsic value of the stock options outstanding and stock options vested at June 30, 2022 was $5.7 million and $5.4 million, respectively. The intrinsic value of stock options exercised during the six months ended June 30, 2022 was approximately $259,000. Total unrecognized compensation cost, net of income tax benefit, related to non-vested stock option awards, which are expected to be recognized over the vesting periods, was approximately $5.5 million as of June 30, 2022.

The table below summarizes the stock option transactions under the 2022 Plan at June 30, 2022 and December 31, 2021 and changes during the three-month period and year then ended:

	For the Six Months Ended June 30, 2022			For the Year Ended December 31, 2021
	Shares (000)	Weighted- Average Exercisable Price		Shares (000)	Weighted- Average Exercisable Price
Outstanding, beginning of year	3,015	$	20.06	3,254	$	19.77
Granted	178	21.04		15	21.68
Forfeited/Expired	(29)	22.83		(57)	22.44
Exercised	(20)	10.63		(197)	14.78
Outstanding, end of period	3,144	20.14		3,015	20.06
Exercisable, end of period	1,813	$	18.46	1,543	$	17.46

Stock-based compensation expense for stock-based compensation awards granted is based on the grant-date fair value. For stock option awards, the fair value is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Accordingly, while management believes that the Black-Scholes option-pricing model provides a reasonable estimate of fair value, the model does not necessarily provide the best single measure of fair value for the Company's employee stock options. The weighted-average fair value of options granted during the six months ended June 30, 2022 was $5.17 per share. There were 178,000 options granted during the six months ended June 30, 2022. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model based on the weighted-average assumptions for expected dividend yield, expected stock price volatility, risk-free interest rate, and expected life of options granted.

The assumptions used in determining the fair value of the 2022 and 2021 stock option grants were as follows:

	For the Six Months Ended June 30, 2022		For the Year Ended December 31, 2021
Expected dividend yield	3.15	%	2.59	%
Expected stock price volatility	31.22	%	70.13	%
Risk-free interest rate	2.80	%	0.75	%
Expected life of options	6.5 years		6.5 years

The following is a summary of currently outstanding and exercisable options at June 30, 2022:

Options Outstanding					Options Exercisable
Exercise Prices	Options Outstanding Shares (000)	Weighted- Average Remaining Contractual Life (in years)	Weighted- Average Exercise Price		Options Exercisable Shares (000)	Weighted- Average Exercise Price
$6.56 to $8.62	140	0.55	$	8.62	140	$	8.62
$9.54 to $14.71	140	2.05	13.23		140	13.23
$16.77 to $16.86	130	2.14	16.80		130	16.80
$17.12 to $17.36	92	2.72	17.13		92	17.13
$17.40 to $18.46	871	3.13	18.45		738	18.45
$18.50 to $20.16	41	6.78	19.05		23	19.05
$20.46 to $21.25	293	6.58	20.79		149	21.10
$21.31 to $22.22	132	6.68	22.18		82	22.21
$22.70 to $23.32	1,208	6.06	23.32		246	23.32
$23.51 to $25.96	99	5.81	25.39		73	25.85
	3,144				1,813

The table below summarized the activity for the Company’s restricted stock issued and outstanding at June 30, 2022 and December 31, 2021 and changes during the period and year then ended:

	As of June 30, 2022		As of December 31, 2021
	(In thousands)
Beginning of year	1,231		1,371
Issued	391		216
Vested	(177)		(320)
Forfeited	(31)		(36)
End of period	1,414		1,231
Amount of expense for six months and twelve months ended, respectively	$	3,664	$	7,112

Total unrecognized compensation cost, net of income tax benefit, related to non-vested restricted stock awards, which are expected to be recognized over the vesting periods, was approximately $19.2 million as of June 30, 2022.

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Non-Interest Expense

6 Months Ended

Jun. 30, 2022

Other Income and Expenses [Abstract]

Non-Interest Expense

14. Non-Interest Expense

The table below shows the components of non-interest expense for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands)
Salaries and employee benefits	$	65,795	$	42,462	$	109,346	$	84,521
Occupancy and equipment	14,256		9,042		23,400		18,279
Data processing expense	10,094		5,893		17,133		11,763
Merger and acquisition expenses	48,731		—		49,594		—
Other operating expenses:
Advertising	2,117		1,194		3,383		2,240
Amortization of intangibles	2,477		1,421		3,898		2,842
Electronic banking expense	3,352		2,616		5,890		4,854
Directors’ fees	375		414		779		797
Due from bank service charges	396		273		666		522
FDIC and state assessment	2,390		1,108		4,058		2,471
Insurance	973		787		1,743		1,568
Legal and accounting	1,061		1,058		1,858		1,904
Other professional fees	2,254		1,796		3,863		3,409
Operating supplies	995		465		1,749		952
Postage	556		292		862		630
Telephone	384		365		721		711
Other expense	9,276		3,796		13,435		8,385
Total other operating expenses	26,606		15,585		42,905		31,285
Total non-interest expense	$	165,482	$	72,982	$	242,378	$	145,848

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Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

15. Leases

The Company leases land and office facilities under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2044 and do not include renewal options based on economic factors that would have implied that continuation of the lease was reasonably certain. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. The leases generally include real estate taxes and common area maintenance (“CAM”) charges in the rental payments. Short-term leases are leases having a term of twelve months or less. In accordance with ASU 2018-11, the Company does not separate nonlease components from the associated lease component of our operating leases. As a result, the Company accounts for these components as a single component under Topic 842 since (i) the timing and pattern of transfer of the nonlease components and the associated lease component are the same and (ii) the lease component, if accounted for separately, would be classified as an operating lease. The Company recognizes short term leases on a straight-line basis and does not record a related ROU asset and liability for such leases. In addition, equipment leases were determined to be immaterial and a related ROU asset and liability for such leases is not recorded.

As of June 30, 2022, the balances of the right-of-use asset and lease liability was $45.6 million and $48.7 million, respectively. As of December 31, 2021, the balances of the right-of-use asset and lease liability was $39.6 million and $42.4 million, respectively The right-of-use asset is included in bank premises and equipment, net, and the lease liability is included in accrued interest payable and other liabilities.

The minimum rental commitments under these noncancelable operating leases are as follows (in thousands) as of June 30, 2022 and December 31, 2021:

	June 30, 2022		December 31, 2021
2022	$	4,547	$	7,714
2023	8,153		6,574
2024	7,296		6,001
2025	6,568		5,510
2026	6,308		5,389
Thereafter	30,335		24,999
Total future minimum lease payments	$	63,207	$	56,187
Discount effect of cash flows	(14,505)		(13,778)
Present value of net future minimum lease payments	$	48,702	$	42,409

Additional information (dollar amounts in thousands):

	For the Three Months Ended						Six Months Ended
Lease expense:	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Operating lease expense	$	2,116		$	1,981		$	3,939		$	3,990
Short-term lease expense	—			1			1			5
Variable lease expense	218			251			443			508
Total lease expense	$	2,334		$	2,233		$	4,383		$	4,503
Other information:
Cash paid for amounts included in the measurement of lease liabilities	$	2,154		$	1,974		$	3,983		$	3,968
Weighted-average remaining lease term (in years)	9.33			9.75			9.42			9.84
Weighted-average discount rate	3.38		%	3.53		%	3.39		%	3.53		%

The Company currently leases three properties from three related parties. Total rent expense from the leases was $36,000 or 1.56% of total lease expense and $73,000 or 1.66% of total lease expense for the three and six months ended June 30, 2022.

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Significant Estimates and Concentrations of Credit Risks

6 Months Ended

Jun. 30, 2022

Text Block [Abstract]

Significant Estimates and Concentrations of Credit Risks

16. Significant Estimates and Concentrations of Credit Risks

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for credit losses and certain concentrations of credit risk are reflected in Note 5, while deposit concentrations are reflected in Note 8.

The Company’s primary market areas are in Arkansas, Florida, Texas, South Alabama and New York. The Company primarily grants loans to customers located within these markets unless the borrower has an established relationship with the Company.

The diversity of the Company’s economic base tends to provide a stable lending environment. Although the Company has a loan portfolio that is diversified in both industry and geographic area, a substantial portion of its debtors’ ability to honor their contracts is dependent upon real estate values, tourism demand and the economic conditions prevailing in its market areas.

Although the Company has a diversified loan portfolio, at June 30, 2022 and December 31, 2021, commercial real estate loans represented 57.6% and 59.7% of total loans receivable, respectively, and 229.2% and 212.2% of total stockholders’ equity at June 30, 2022 and December 31, 2021, respectively. Residential real estate loans represented 15.1% and 15.8% of total loans receivable and 60.0% and 56.3% of total stockholders’ equity at June 30, 2022 and December 31, 2021, respectively.

Approximately 78.0% of the Company’s total loans and 82.1% of the Company’s real estate loans as of June 30, 2022, are to borrowers whose collateral is located in Alabama, Arkansas, Florida, Texas and New York, the states in which the Company has its branch locations.

As of June 30, 2022, the markets in which we operate have been experiencing significant economic uncertainty primarily related to inflationary concerns, continuing supply chain issues and the potential impacts of international unrest. However, excluding the impact of the acquisition of Happy Bancshares, the Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2022. In addition, excluding the impact of the acquisition of Happy Bancshares, the Company determined no additional provision for unfunded commitments was necessary as of June 30, 2022.

Any future volatility in the economy could cause the values of assets and liabilities recorded in the financial statements to change rapidly, resulting in material future adjustments in asset values, the allowance for credit losses and capital that could negatively impact the Company’s ability to meet regulatory capital requirements and maintain sufficient liquidity.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

17. Commitments and Contingencies

In the ordinary course of business, the Company makes various commitments and incurs certain contingent liabilities to fulfill the financing needs of its customers. These commitments and contingent liabilities include lines of credit and commitments to extend credit and issue standby letters of credit. The Company applies the same credit policies and standards as they do in the lending process when making these commitments. The collateral obtained is based on the assessed creditworthiness of the borrower.

At June 30, 2022 and December 31, 2021, commitments to extend credit of $4.47 billion and $3.05 billion, respectively, were outstanding. A percentage of these balances are participated out to other banks; therefore, the Company can call on the participating banks to fund future draws. Since some of these commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

Outstanding standby letters of credit are contingent commitments issued by the Company, generally to guarantee the performance of a customer in third-party borrowing arrangements. The term of the guarantee is dependent upon the creditworthiness of the borrower, some of which are long-term. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments. The maximum amount of future payments the Company could be required to make under these guarantees at June 30, 2022 and December 31, 2021, was $164.9 million and $110.8 million, respectively.

The Company and/or its bank subsidiary have various unrelated legal proceedings, most of which involve loan foreclosure activity pending, which, in the aggregate, are not expected to have a material adverse effect on the financial position or results of operations or cash flows of the Company and its subsidiary.

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Regulatory Matters

6 Months Ended

Jun. 30, 2022

Regulatory Matters [Abstract]

Regulatory Matters

18. Regulatory Matters

The Bank is subject to a legal limitation on dividends that can be paid to the parent company without prior approval of the applicable regulatory agencies. Arkansas bank regulators have specified that the maximum dividend limit state banks may pay to the parent company without prior approval is 75% of the current year earnings plus 75% of the retained net earnings of the preceding year. Since the Bank is also under supervision of the Federal Reserve, it is further limited if the total of all dividends declared in any calendar year by the Bank exceeds the Bank’s net profits to date for that year combined with its retained net profits for the preceding two years. During the first six months of 2022, the Company requested approximately $53.1 million in regular dividends from its banking subsidiary.

The Company’s banking subsidiary is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s regulators could require adjustments to regulatory capital not reflected in the consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total, common Tier 1 equity and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes that, as of June 30, 2022, the Company meets all capital adequacy requirements to which it is subject.

On December 31, 2018, the federal banking agencies issued a joint final rule to revise their regulatory capital rules to permit bank holding companies and banks to phase-in, for regulatory capital purposes, the day-one impact of the new CECL accounting rule on retained earnings over a period of three years. As part of its response to the impact of COVID-19, on March 27, 2020, the federal banking regulatory agencies issued an interim final rule that provided the option to temporarily delay certain effects of CECL on regulatory capital for two years, followed by a three-year transition period. The interim final rule allows bank holding companies and banks to delay for two years 100% of the day-one impact of adopting CECL and 25% of the cumulative change in the reported allowance for credit losses since adopting CECL. The Company elected to adopt the interim final rule, which is reflected in the Company's risk-based capital ratios.

In July 2013, the Federal Reserve Board and the other federal bank regulatory agencies issued a final rule to revise their risk-based and leverage capital requirements and their method for calculating risk-weighted assets to make them consistent with the agreements that were reached by the Basel Committee on Banking Supervision in “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems” and certain provisions of the Dodd-Frank Act (“Basel III”). Basel III applies to all depository institutions, bank holding companies with total consolidated assets of $500 million or more, and savings and loan holding companies. Basel III became effective for the Company and its bank subsidiary on January 1, 2015. Basel III limits a banking organization’s capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” of 2.5% of common equity Tier 1 capital to risk-weighted assets, which is in addition to the amount necessary to meet its minimum risk-based capital requirements. The capital conservation buffer requirement began being phased in beginning January 1, 2016 at the 0.625% level and increased by 0.625% on each subsequent January 1, until it reached 2.5% on January 1, 2019 when the phase-in period ended, and the full capital conservation buffer requirement became effective.

Basel III permanently grandfathers trust preferred securities and other non-qualifying capital instruments that were issued and outstanding as of May 19, 2010 in the Tier 1 capital of bank holding companies with total consolidated assets of less than $15 billion as of December 31, 2009. The rule phases out of Tier 1 capital these non-qualifying capital instruments issued before May 19, 2010 by all other bank holding companies. However, now that the Company has exceeded $15 billion in assets and has completed the acquisition of Happy Bancshares, the Tier 1 treatment of the Company’s outstanding trust preferred securities has been eliminated, and these securities are now treated as Tier 2 capital.

Basel III also amended the prompt corrective action rules to incorporate a “common equity Tier 1 capital” requirement and to raise the capital requirements for certain capital categories. In order to be adequately capitalized for purposes of the prompt corrective action rules, a banking organization will be required to have at least a 4.5% “common equity Tier 1 risk-based capital” ratio, a 4% “Tier 1 leverage capital” ratio, a 6% “Tier 1 risk-based capital” ratio and an 8% “total risk-based capital” ratio.

The Federal Reserve Board’s risk-based capital guidelines include the definitions for (1) a well-capitalized institution, (2) an adequately-capitalized institution, and (3) an undercapitalized institution. Under Basel III, the criteria for a well-capitalized institution are now: a 6.5% “common equity Tier 1 risk-based capital” ratio, a 5% “Tier 1 leverage capital” ratio, an 8% “Tier 1 risk-based capital” ratio, and a 10% “total risk-based capital” ratio. As of June 30, 2022, the Bank met the capital standards for a well-capitalized institution. The Company’s “common equity Tier 1 risk-based capital” ratio, “Tier 1 leverage capital” ratio, “Tier 1 risk-based capital” ratio, and “total risk-based capital” ratio were 12.78%, 9.77%, 12.88%, and 16.61%, respectively, as of June 30, 2022.

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Additional Cash Flow Information

6 Months Ended

Jun. 30, 2022

Supplemental Cash Flow Elements [Abstract]

Additional Cash Flow Information

19. Additional Cash Flow Information

In connection with the Happy acquisition, accounted for under ASC Topic 805, the Company acquired approximately $6.68 billion in assets, including $858.9 million in cash and cash equivalents, assumed $6.15 billion in liabilities, issued approximately 42.4 million shares of its common stock valued at approximately $958.8 million as of April 1, 2022. In addition, the holders of certain Happy stock-based awards received approximately $3.7 million in cash in cancellation of such awards, for a total transaction value of approximately $962.5 million.

The following is a summary of the Company’s additional cash flow information during the six-month periods ended:

	June 30,
	2022		2021
	(In thousands)
Interest paid	$	27,605	$	28,428
Income taxes paid	38,553		58,685
Assets acquired by foreclosure	9		1,951

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Financial Instruments

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Financial Instruments

20. Financial Instruments

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is a hierarchy of three levels of inputs that may be used to measure fair values:

Level 1	Quoted prices in active markets for identical assets or liabilities
Level 2	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Transfers of financial instruments between levels within the fair value hierarchy are recognized on the date management determines that the underlying circumstances or assumptions have changed.

Financial Assets and Liabilities Measured on a Recurring Basis

Available-for-sale securities and marketable equity securities are the only material instruments valued on a recurring basis which are held by the Company at fair value. Primarily all of the Company's securities are considered to be Level 2 securities, with the exception of the marketable equity securities, which are considered to be Level 1 securities. The Level 2 securities consist primarily of U.S. government-sponsored enterprises, mortgage-backed securities plus state and political subdivisions. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. As of June 30, 2022 and December 31, 2021, Level 3 securities were immaterial. In addition, there were no material transfers between hierarchy levels during 2022 and 2021. See Note 3 to the Condensed Notes to Consolidated Financial Statements for additional detail related to investment securities.

The Company reviews the prices supplied by the independent pricing service, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. In general, the Company does not purchase investment portfolio securities with complicated structures. Pricing for the Company’s investment securities is fairly generic and is easily obtained. The Company uses a third-party comparison pricing vendor in order to reflect consistency in the fair values of the investment securities sampled by the Company each quarter.

Financial Assets and Liabilities Measured on a Nonrecurring Basis

Held-to-maturity investment securities and impaired loans that are collateral dependent are the only material financial assets valued on a non-recurring basis which are held by the Company at fair value. The held-to-maturity investment securities consist primarily of state and political subdivisions plus U.S. Treasury securities. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Loan impairment is reported when full payment under the loan terms is not expected. Impaired loans are carried at the net realizable value of the collateral if the loan is collateral dependent. A portion of the allowance for credit losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for credit losses to require an increase, such increase is reported as a component of the provision for credit losses. The fair value of loans with specific allocated losses was $323.1 million and $280.0 million as of June 30, 2022 and December 31, 2021, respectively. This valuation is considered Level 3, consisting of appraisals of underlying collateral. The Company reversed approximately $77,000 and $126,000 of accrued interest receivable when impaired loans were put on non-accrual status during the three months ended June 30, 2022 and 2021, respectively. The Company reversed approximately $149,000 and $184,000 of accrued interest receivable when impaired loans were put on non-accrual status during the six months ended June 30, 2022 and 2021, respectively.

Nonfinancial Assets and Liabilities Measured on a Nonrecurring Basis

Foreclosed assets held for sale are the only material non-financial assets valued on a non-recurring basis which are held by the Company at fair value, less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Company’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for credit losses. Additionally, valuations are periodically performed by management and any subsequent reduction in value is recognized by a charge to income. The fair value of foreclosed assets held for sale is estimated using Level 3 inputs based on appraisals of underlying collateral. As of June 30, 2022 and December 31, 2021, the fair value of foreclosed assets held for sale, less estimated costs to sell, was $373,000 and $1.6 million, respectively.

No foreclosed assets held for sale were remeasured during the six months ended June 30, 2022. Regulatory guidelines require the Company to reevaluate the fair value of foreclosed assets held for sale on at least an annual basis. The Company’s policy is to comply with the regulatory guidelines.

The significant unobservable (Level 3) inputs used in the fair value measurement of collateral for collateral-dependent impaired loans and foreclosed assets primarily relate to customized discounting criteria applied to the customer’s reported amount of collateral. The amount of the collateral discount depends upon the condition and marketability of the underlying collateral. As the Company’s primary objective in the event of default would be to monetize the collateral to settle the outstanding balance of the loan, less marketable collateral would receive a larger discount. During the reported periods, collateral discounts ranged from 10% to 60% for commercial and residential real estate collateral.

Fair Values of Financial Instruments

The following table presents the estimated fair values of the Company’s financial instruments. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

	June 30, 2022
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	2,816,376	$	2,816,376	1
Investment securities - available for sale	3,791,509		3,791,509		2
Investment securities - held-to-maturity (U.S. Treasuries)	277,688		276,029		1
Investment securities - held-to-maturity (state and political subdivisions)	1,089,093		997,251		2
Loans receivable, net of impaired loans and allowance	13,302,682		13,695,308		3
Accrued interest receivable	80,274		80,274		1
FHLB, FRB & FNBB Bank stock; other equity investments	182,399		182,399		3
Marketable equity securities	33,631		33,631		1
Financial liabilities:
Deposits:
Demand and non-interest bearing	$	6,036,583	$	6,036,583	1
Savings and interest-bearing transaction accounts	12,424,192		12,424,192		1
Time deposits	1,119,297		1,096,797		3
Securities sold under agreements to repurchase	118,573		118,573		1
FHLB and other borrowed funds	400,000		400,025		2
Accrued interest payable	9,203		9,203		1
Subordinated debentures	458,455		430,470		3

	December 31, 2021
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	3,650,315	$	3,650,315	1
Investment securities - available for sale	3,119,807		3,119,807		2
Loans receivable, net of impaired loans and allowance	9,319,421		9,503,261		3
Accrued interest receivable	46,736		46,736		1
FHLB, FRB & FNBB Bank stock; other equity investments	124,638		124,638		3
Marketable equity securities	17,110		17,110		1
Financial liabilities:
Deposits:
Demand and non-interest bearing	$	4,127,878	$	4,127,878	1
Savings and interest-bearing transaction accounts	9,251,805		9,251,805		1
Time deposits	880,887		901,280		3
Securities sold under agreements to repurchase	140,886		140,886		1
FHLB and other borrowed funds	400,000		401,362		2
Accrued interest payable	4,798		4,798		1
Subordinated debentures	371,093		374,894		3

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2022

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

21. Recent Accounting Pronouncements

In December 31, 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in the update simplify the accounting for income taxes by removing the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items and the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in the update also simplify the accounting for income taxes by requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction, specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; however, an entity may elect to do so on an entity-by-entity basis for a legal entity that is both not subject to tax and disregarded by the taxing authority. The amendments require that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company adopted the guidance effective January 1, 2021, and its adoption did not have a significant impact on our financial position or financial statement disclosures.

In March 2020, the FASB issued ASU 2020-04,“Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022.

In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope.” The amendments in the update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, certain provisions in Topic 848, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Amendments in the update to the expedients and exceptions in Topic 848 capture the incremental consequences of the scope clarification and tailor the existing guidance to derivative instruments affected by the discounting transition. The amendments in this Update do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022.In March 2022, the FASB issued ASU 2022-02, "Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The amendments require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with Subtopic 326-20, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. ASU 2022-02 is effective for entities that have adopted ASU No. 2016-13 for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. These amendments should be applied prospectively. However, for the transition method related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Early adoption is permitted if an entity has adopted ASU 2016-13. If an entity elects to early adopt ASU 2022-02 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company is currently evaluating the potential impacts related to the adoption of the ASU.

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Nature of Operations and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operating Segments

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Bank is the only significant subsidiary upon which management makes decisions regarding how to allocate resources and assess performance. Each of the branches of the Bank provide a group of similar banking services, including such products and services as commercial, real estate and consumer loans, time deposits, checking and savings accounts. The individual bank branches have similar operating and economic characteristics. While the chief decision maker monitors the revenue streams of the various products, services and branch locations, operations are managed, and financial performance is evaluated on a company-wide basis. Accordingly, all of the banking services and branch locations are considered by management to be aggregated into one reportable operating segment.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, the valuation of investment securities, the valuation of foreclosed assets and the valuations of assets acquired, and liabilities assumed in business combinations. In connection with the determination of the allowance for credit losses and the valuation of foreclosed assets, management obtains independent appraisals for significant properties.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of HBI and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Reclassifications

Various items within the accompanying consolidated financial statements for previous years have been reclassified to provide more comparative information. These reclassifications had no effect on net earnings or stockholders’ equity.

Interim financial information

Interim financial information

The accompanying unaudited consolidated financial statements as of June 30, 2022 and 2021 have been prepared in condensed format, and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

The information furnished in these interim statements reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year. The interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2021 Form 10-K, filed with the Securities and Exchange Commission.

Loans Receivable and Allowance for Credit Losses

Loans Receivable and Allowance for Credit Losses

Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balance adjusted for any charge-offs, deferred fees or costs on originated loans. Interest income on loans is accrued over the term of the loans based on the principal balance outstanding. Loan origination fees and direct origination costs are capitalized and recognized as adjustments to yield on the related loans.

The allowance for credit losses on loans receivable is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed and expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, commercial real estate price index, housing price index and national retail sales index.

The allowance for credit losses is measured based on call report segment as these types of loans exhibit similar risk characteristics. The identified loan segments are as follows:

•1-4 family construction

•All other construction

•1-4 family revolving home equity lines of credit (“HELOC”) & junior liens

•1-4 family senior liens

•Multifamily

•Owner occupied commercial real estate

•Non-owner occupied commercial real estate

•Commercial & industrial, agricultural, non-depository financial institutions, purchase/carry securities, other

•Consumer auto

•Other consumer

•Other consumer - SPF

The allowance for credit losses for each segment is measured through the use of the discounted cash flow method. Loans evaluated individually that are considered to be collateral dependent are not included in the collective evaluation. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. For loans that are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation if a specific reserve is not recorded.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies:

•Management has a reasonable expectation at the reporting date that troubled debt restructuring will be executed with an individual borrower.

•The extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factors ("Q-Factors") and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions.

Loans considered impaired, according to ASC 326, are loans for which, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. The aggregate amount of impairment of loans is utilized in evaluating the adequacy of the allowance for credit losses and amount of provisions thereto. Losses on impaired loans are charged against the allowance for credit losses when in the process of collection, it appears likely that such losses will be realized. The accrual of interest on impaired loans is discontinued when, in management’s opinion the collection of interest is doubtful or generally when loans are 90 days or more past due. When accrual of interest is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Loans are placed on non-accrual status when management believes that the borrower’s financial condition, after giving consideration to economic and business conditions and collection efforts, is such that collection of interest is doubtful, or generally when loans are 90 days or more past due. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Accrued interest related to non-accrual loans is generally charged against the allowance for credit losses when accrued in prior years and reversed from interest income if accrued in the current year. Interest income on non-accrual loans may be recognized to the extent cash payments are received, although the majority of payments received are usually applied to principal. Non-accrual loans are generally returned to accrual status when principal and interest payments are less than 90 days past due, the customer has made required payments for at least six months, and we reasonably expect to collect all principal and interest.

Acquisition Accounting and Acquired Loans

Acquisition Accounting and Acquired Loans

The Company accounts for its acquisitions under FASB ASC Topic 805, Business Combinations, which requires the use of the purchase method of accounting. All identifiable assets acquired, including loans, are recorded at fair value. In accordance with ASC 326, the Company records both a discount or premium and an allowance for credit losses on acquired loans. All purchased loans are recorded at fair value in accordance with the fair value methodology prescribed in FASB ASC Topic 820, Fair Value Measurements. The fair value estimates associated with the loans include estimates related to expected prepayments and the amount and timing of undiscounted expected principal, interest and other cash flows.

Purchased loans that have experienced more than insignificant credit deterioration since origination are purchase credit deteriorated (“PCD”) loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for impairment. These models utilize a peer group benchmark in order to determine the probability of default and loss given default to be used in the calculation. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses.

For further discussion of the Company’s acquisitions, see Note 2 to the Condensed Notes to Consolidated Financial Statements.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Revenue Recognition

Revenue Recognition

Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as our loans, letters of credit, investment securities and mortgage lending income, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our significant revenue-generating activities that are within the scope of ASC Topic 606, which are presented in our income statements as components of non-interest income are as follows:

•Service charges on deposit accounts – These represent general service fees for monthly account maintenance and activity or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied.

•Other service charges and fees – These represent credit card interchange fees and Centennial Commercial Finance Group (“Centennial CFG”) loan fees. The interchange fees are recorded in the period the performance obligation is satisfied which is generally the cash basis based on agreed upon contracts. The Centennial CFG loan fees are based on loan or other negotiated agreements with customers and are accounted for under ASC Topic 310.

Earnings per Share

Earnings per ShareBasic earnings per share is computed based on the weighted-average number of shares outstanding during each year. Diluted earnings per share is computed using the weighted-average shares and all potential dilutive shares outstanding during the period.

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Nature of Operations and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Computation of Basic and Diluted Earnings per Common Share (EPS)

The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the following periods:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands)
Net income	$	15,978	$	79,070	$	80,870	$	170,672
Average shares outstanding	205,683		164,781		184,851		165,018
Effect of common stock options	332		445		372		296
Average diluted shares outstanding	206,015		165,226		185,223		165,314
Basic earnings per share	$	0.08	$	0.48	$	0.44	$	1.03
Diluted earnings per share	$	0.08	$	0.48	$	0.44	$	1.03

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Business Combinations and Asset Acquisitions (Tables)

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following schedule is a preliminary breakdown of the assets acquired and liabilities assumed as of the acquisition date:

	Happy Bancshares, Inc.
	Acquired from Happy		Fair Value Adjustments		As Recorded by HBI
	(Dollars in thousands)
Assets
Cash and due from banks	$	112,999	$	(132)	$	112,867
Interest-bearing deposits with other banks	746,031		—		746,031
Cash and cash equivalents	859,030		(132)		858,898
Investment securities - available-for-sale, net of allowance for credit losses	1,773,540		8,485		1,782,025
Total investment securities	1,773,540		8,485		1,782,025
Loans receivable	3,657,009		(4,303)		3,652,706
Allowance for credit losses	(42,224)		25,408		(16,816)
Loans receivable, net	3,614,785		21,105		3,635,890
Bank premises and equipment, net	153,642		(11,575)		142,067
Foreclosed assets held for sale	193		(77)		116
Cash value of life insurance	105,049		3		105,052
Accrued interest receivable	31,575		—		31,575
Deferred tax asset, net	32,908		2,506		35,414
Goodwill	130,428		(130,428)		—
Core deposit and other intangibles	10,672		31,591		42,263
Other assets	43,330		6,422		49,752
Total assets acquired	$	6,755,152	$	(72,100)	$	6,683,052
Liabilities
Deposits
Demand and non-interest-bearing	$	1,932,756	$	—	$	1,932,756
Savings and interest-bearing transaction accounts	3,519,652		—		3,519,652
Time deposits	401,899		903		402,802
Total deposits	5,854,307		903		5,855,210
FHLB and other borrowed funds	74,212		4,118		78,330
Accrued interest payable and other liabilities	50,889		(6,130)		44,759
Subordinated debentures	159,965		7,625		167,590
Total liabilities assumed	$	6,139,373	$	6,516	$	6,145,889
Equity
Total equity assumed	615,779		(615,779)		—
Total liabilities and equity assumed	$	6,755,152	$	(609,263)	$	6,145,889
Net assets acquired					537,163
Purchase price					962,538
Goodwill					$	425,375

Business Acquisition, Pro Forma Information

The following schedule represents the unaudited pro forma combined financial information as of the three and six-month periods ended June 30, 2022 and 2021, assuming the acquisition was completed as of January 1, 2021:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands, except per share data)
Total interest income	$	217,013	$	211,279	$	419,318	$	418,143
Total non-interest income	44,581		44,427		88,151		101,485
Net income available to all shareholders	96,923		34,536		182,557		129,653
Basic earnings per common share	$	0.47	$	0.17	$	0.89	$	0.63
Diluted earnings per common share	$	0.47	$	0.17	$	0.88	$	0.62

Purchased Financial Assets with Credit Deterioration

The following table provides a summary of loans purchased as part of the Happy acquisition with credit deterioration at acquisition:

	April 1, 2022
	(In thousands)
Purchased Loans with Credit Deterioration:
Par value	$	165,028
Allowance for credit losses at acquisition	(16,816)
Premium on acquired loans	684
Purchase price	$	148,896

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Fair Value of Securities Available-for-Sale

The following table summarizes the amortized cost and fair value of securities that are classified as available-for-sale and held-to-maturity are as follows:

	June 30, 2022
	Available-for-Sale
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	465,293	$	—	$	465,293	$	2,822	$	(16,658)	$	451,457
Residential mortgage-backed securities	1,780,519		—		1,780,519		657		(152,990)		1,628,186
Commercial mortgage-backed securities	363,117		—		363,117		14		(13,067)		350,064
State and political subdivisions	1,027,748		(842)		1,026,906		1,111		(93,486)		934,531
Other securities	444,184		—		444,184		131		(17,044)		427,271
Total	$	4,080,861	$	(842)	$	4,080,019	$	4,735	$	(293,245)	$	3,791,509

	June 30, 2022
	Held-to-Maturity
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. Treasuries	$	277,688	$	—	$	277,688	$	—	$	(1,659)	$	276,029
State and political subdivisions	1,091,098		(2,005)		1,089,093		26		(91,868)		997,251
Total	$	1,368,786	$	(2,005)	$	1,366,781	$	26	$	(93,527)	$	1,273,280

	December 31, 2021
	Available-for-Sale
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	433,829	$	—	$	433,829	$	2,375	$	(3,225)	$	432,979
Residential mortgage-backed securities	1,175,185		—		1,175,185		4,085		(18,551)		1,160,719
Commercial mortgage-backed securities	372,702		—		372,702		6,521		(1,968)		377,255
State and political subdivisions	973,318		(842)		972,476		26,296		(1,794)		996,978
Other securities	151,449		—		151,449		1,781		(1,354)		151,876
Total	$	3,106,483	$	(842)	$	3,105,641	$	41,058	$	(26,892)	$	3,119,807

Amortized Cost and Estimated Fair Value of Securities Contractual Maturity

The amortized cost and estimated fair value of securities classified as available-for-sale and held-to-maturity at June 30, 2022, by contractual maturity, are shown below. Expected maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	21,153	$	21,175	$	249,949	$	249,689
Due after one year through five years	145,743		140,380		4,757		4,690
Due after five years through ten years	487,573		459,863		181,961		168,691
Due after ten years	1,277,149		1,186,305		932,119		850,210
Mortgage - backed securities: Residential	1,780,519		1,628,186		—		—
Mortgage - backed securities: Commercial	363,117		350,064		—		—
Other	5,607		5,536		—		—
Total	$	4,080,861	$	3,791,509	$	1,368,786	$	1,273,280

Unrealized Losses and Estimated Fair Value of Investment Securities Available for Sale

The following table shows gross unrealized losses and estimated fair value of investment securities classified as available-for-sale and held-to-maturity, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of June 30, 2022 and December 31, 2021.

	June 30, 2022
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Available-for-sale:
U.S. government-sponsored enterprises	$	115,827	$	(10,132)	$	67,691	$	(6,526)	$	183,518	$	(16,658)
Residential mortgage-backed securities	1,205,092		(105,830)		253,686		(47,160)		1,458,778		(152,990)
Commercial mortgage-backed securities	299,151		(9,507)		44,291		(3,560)		343,442		(13,067)
State and political subdivisions	789,862		(89,276)		22,922		(4,210)		812,784		(93,486)
Other securities	293,266		(15,278)		17,222		(1,766)		310,488		(17,044)
Total	$	2,703,198	$	(230,023)	$	405,812	$	(63,222)	$	3,109,010	$	(293,245)
Held-to-maturity:
U.S. Treasuries	276,029		(1,659)		—		—		276,029		(1,659)
State and political subdivisions	998,550		(91,868)		—		—		998,550		(91,868)
Total	$	1,274,579	$	(93,527)	$	—	$	—	$	1,274,579	$	(93,527)

	December 31, 2021
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. government-sponsored enterprises	$	120,730	$	(1,356)	$	78,124	$	(1,869)	$	198,854	$	(3,225)
Residential mortgage-backed securities	854,807		(15,246)		104,897		(3,305)		959,704		(18,551)
Commercial mortgage-backed securities	100,702		(1,251)		28,711		(717)		129,413		(1,968)
State and political subdivisions	136,135		(1,282)		18,647		(512)		154,782		(1,794)
Other securities	75,744		(1,316)		2,703		(38)		78,447		(1,354)
Total	$	1,288,118	$	(20,451)	$	233,082	$	(6,441)	$	1,521,200	$	(26,892)

Debt Securities, Available-for-Sale, Allowance for Credit Loss

Available-for-Sale Investment Securities
	June 30, 2022		December 31, 2021
	(In thousands)
Allowance for credit losses:
Beginning balance	$	842	$	842
Provision for credit loss	—		—
Balance, June 30	$	842	$	842
Provision for credit loss			—
Balance, December 31, 2021			$	842

Debt Securities, Held-to-maturity, Allowance for Credit Loss

Held-to-Maturity Investment Securities
	June 30, 2022				December 31, 2021
	State and Political Subdivisions		U.S. Treasuries		State and Political Subdivisions		U.S. Treasuries
Allowance for credit losses:	(In thousands)
Beginning balance	$	—	$	—	$	—	$	—
Provision for credit loss - acquired securities	(2,005)		—		—		—
Securities charged-off	—		—		—		—
Recoveries	—		—		—		—
Balance, June 30, 2022	$	(2,005)	$	—	$	—	$	—

Held-to-Maturity Securities Credit Quality Indicators

The following table summarizes bond ratings for the Company’s held-to-maturity portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of June 30, 2022:

	State and Political Subdivisions		U.S. Treasuries		Total
	(In thousands)
Aaa/AAA	$	217,912	$	277,688	$	495,600
Aa/AA	837,675		—		837,675
A	33,677		—		33,677
Baa/BBB	—		—		—
Not rated	1,834		—		1,834
Total	$	1,091,098	$	277,688	$	1,368,786

Schedule of Income Earned on Available-for Sale Securities

Income earned on securities for the three and six months ended June 30, 2022 and 2021, is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands)
Taxable
Available-for-sale	$	14,493	$	7,185	$	23,238	$	13,438
Held-to-maturity	6,448		—		6,783		—
Non-taxable
Available-for-sale	4,751		4,905		9,459		9,976
Held-to-maturity	2,974		—		2,973		—
Total	$	28,666	$	12,090	$	42,453	$	23,414

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Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Summary of Various Categories of Loans Receivable

The various categories of loans receivable are summarized as follows:

	June 30, 2022		December 31, 2021
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	5,092,539	$	3,889,284
Construction/land development	2,595,384		1,850,050
Agricultural	329,106		130,674
Residential real estate loans
Residential 1-4 family	1,708,221		1,274,953
Multifamily residential	389,633		280,837
Total real estate	10,114,883		7,425,798
Consumer	1,106,343		825,519
Commercial and industrial	2,187,771		1,386,747
Agricultural	324,630		43,920
Other	190,246		154,105
Total loans receivable	13,923,873		9,836,089
Allowance for credit losses	(294,267)		(236,714)
Loans receivable, net	$	13,629,606	$	9,599,375

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Allowance for Credit Losses, Credit Quality and Other (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Balance of Allowance for Credit Losses

The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2022:

	Three Months Ended June 30, 2022
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	26,349	$	95,876	$	37,111	$	52,492	$	22,940	$	234,768
Allowance for credit losses on PCD loans - Happy acquisition	950		9,283		980		5,596		7		16,816
Loans charged off	—		—		(39)		—		(3,226)		(3,265)
Recoveries of loans previously charged off	302		52		23		221		180		778
Net loans recovered (charged off)	302		52		(16)		221		(3,046)		(2,487)
Provision for credit losses - acquired loans	7,205		18,711		7,380		11,303		571		45,170
Provision for credit losses	1,883		(8,727)		5,691		(1,303)		2,456		—
Balance, June 30	$	36,689	$	115,195	$	51,146	$	68,309	$	22,928	$	294,267

	Six Months Ended June 30, 2022
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	28,415	$	87,218	$	48,458	$	53,062	$	19,561	$	236,714
Allowance for credit losses on PCD loans - Happy acquisition	950		9,283		980		5,596		7		16,816
Loans charged off	—		—		(289)		(1,416)		(3,870)		(5,575)
Recoveries of loans previously charged off	317		78		49		330		368		1,142
Net loans recovered (charged off)	317		78		(240)		(1,086)		(3,502)		(4,433)
Provision for credit losses - acquired loans	7,205		18,711		7,380		11,303		571		45,170
Provision for credit losses	(198)		(95)		(5,432)		(566)		6,291		—
Balance, June 30	$	36,689	$	115,195	$	51,146	$	68,309	$	22,928	$	294,267

The following table presents the balances in the allowance for credit losses for the six-month period ended June 30, 2021 and the year ended December 31, 2021:

	Six Months Ended June 30, 2021 and Year Ended December 31, 2021
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	32,861	$	88,453	$	53,216	$	46,530	$	24,413	$	245,473
Loans charged off	—		(637)		(323)		(4,210)		(900)		(6,070)
Recoveries of loans previously charged    off	39		68		166		302		473		1,048
Net loans recovered (charged off)	39		(569)		(157)		(3,908)		(427)		(5,022)
Provision for credit loss - loans	(10,755)		5,243		(1,877)		9,660		(2,271)		—
Balance, June 30	22,145		93,127		51,182		52,282		21,715		240,451
Loans charged off	—		(9)		(222)		(4,032)		(1,328)		(5,591)
Recoveries of loans previously charged     off	19		717		517		289		312		1,854
Net loans recovered (charged off)	19		708		295		(3,743)		(1,016)		(3,737)
Provision for credit loss - loans	6,251		(6,617)		(3,019)		4,523		(1,138)		—
Balance, December 31	$	28,415	$	87,218	$	48,458	$	53,062	$	19,561	$	236,714

Amortized Cost Basis of Loans on Nonaccrual Status and Loans Past Due Over 90 Days Still Accruing

The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing as of June 30, 2022 and December 31, 2021:

	June 30, 2022
	Nonaccrual		Nonaccrual with Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	14,247	$	2,137	$	10,712
Construction/land development	1,050		—		246
Agricultural	194		—		711
Residential real estate loans
Residential 1-4 family	17,210		—		2,378
Multifamily residential	156		—		—
Total real estate	32,857		2,137		14,047
Consumer	1,321		—		43
Commercial and industrial	8,698		2,268		2,342
Agricultural & other	1,294		—		—
Total	$	44,170	$	4,405	$	16,432

	December 31, 2021
	Nonaccrual		Nonaccrual with Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	11,923	$	2,212	$	2,225
Construction/land development	1,445		—		—
Agricultural	897		—		—
Residential real estate loans
Residential 1-4 family	16,198		3,000		701
Multifamily residential	156		—		—
Total real estate	30,619		5,212		2,926
Consumer	1,648		—		2
Commercial and industrial	13,875		4,018		107
Agricultural & other	1,016		—		—
Total	$	47,158	$	9,230	$	3,035

Amortized Cost Basis of Collateral-dependent Impaired Loans

The following table presents the amortized cost basis of collateral-dependent impaired loans by class of loans as of June 30, 2022 and December 31, 2021:

	June 30, 2022
	Commercial Real Estate		Residential Real Estate		Other
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	330,460	$	—	$	—
Construction/land development	1,296		—		—
Agricultural	905		—		—
Residential real estate loans
Residential 1-4 family	—		20,714		—
Multifamily residential	—		1,108		—
Total real estate	332,661		21,822		—
Consumer	—		—		1,376
Commercial and industrial	—		—		27,326
Agricultural & other	—		—		1,915
Total	$	332,661	$	21,822	$	30,617

	December 31, 2021
	Commercial Real Estate		Residential Real Estate		Other
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	283,919	$	—	$	—
Construction/land development	4,775		—		—
Agricultural	897		—		—
Residential real estate loans
Residential 1-4 family	—		19,775		—
Multifamily residential	—		1,300		—
Total real estate	289,591		21,075		—
Consumer	—		—		1,663
Commercial and industrial	—		—		18,193
Agricultural & other	—		—		1,016
Total	$	289,591	$	21,075	$	20,872

Summary of Aging Analysis for Loans Receivable

The following is an aging analysis for loans receivable as of June 30, 2022 and December 31, 2021:

	June 30, 2022
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	14,579	$	1,871	$	24,959	$	41,409	$	5,051,130	$	5,092,539	$	10,712
Construction/land development	3,553		2,145		1,296		6,994		2,588,390		2,595,384		246
Agricultural	4,106		337		905		5,348		323,758		329,106		711
Residential real estate loans
Residential 1-4 family	3,729		4,404		19,588		27,721		1,680,500		1,708,221		2,378
Multifamily residential	54		—		156		210		389,423		389,633		—
Total real estate	26,021		8,757		46,904		81,682		10,033,201		10,114,883		14,047
Consumer	701		122		1,364		2,187		1,104,156		1,106,343		43
Commercial and industrial	7,996		1,140		11,040		20,176		2,167,595		2,187,771		2,342
Agricultural & other	658		72		1,294		2,024		512,852		514,876		—
Total	$	35,376	$	10,091	$	60,602	$	106,069	$	13,817,804	$	13,923,873	$	16,432

	December 31, 2021
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	1,434	$	576	$	14,148	$	16,158	$	3,873,126	$	3,889,284	$	2,225
Construction/land development	92		22		1,445		1,559		1,848,491		1,850,050		—
Agricultural	—		472		897		1,369		129,305		130,674		—
Residential real estate loans
Residential 1-4 family	1,633		3,560		16,899		22,092		1,252,861		1,274,953		701
Multifamily residential	—		—		156		156		280,681		280,837		—
Total real estate	3,159		4,630		33,545		41,334		7,384,464		7,425,798		2,926
Consumer	60		205		1,650		1,915		823,604		825,519		2
Commercial and industrial	958		316		13,982		15,256		1,371,491		1,386,747		107
Agricultural and other	587		2		1,016		1,605		196,420		198,025		—
Total	$	4,764	$	5,153	$	50,193	$	60,110	$	9,775,979	$	9,836,089	$	3,035

Presentation of Classified Loans by Class and Risk Rating

Based on the most recent analysis performed, the risk category of loans by class of loans as of June 30, 2022 and December 31, 2021 is as follows:

	June 30, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	245	$	—	$	161	$	—	$	406
Risk rating 2	—		—		—		122		—		4,188		—		4,310
Risk rating 3	168,978		512,718		295,392		299,302		354,655		970,977		219,357		2,821,379
Risk rating 4	185,605		310,791		184,980		177,523		400,884		464,893		134,386		1,859,062
Risk rating 5	8,462		—		4,181		14,622		36,376		232,972		95		296,708
Risk rating 6	876		—		12,785		29,675		5,630		61,442		266		110,674
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	363,921		823,509		497,338		521,489		797,545		1,734,633		354,104		5,092,539
Construction/land development
Risk rating 1	$	—	$	12	$	—	$	—	$	—	$	—	$	—	$	12
Risk rating 2	1,262		—		—		—		—		221		—		1,483
Risk rating 3	202,232		310,042		119,690		103,278		25,526		40,011		122,957		923,736
Risk rating 4	331,263		544,674		212,516		468,082		12,562		49,210		18,033		1,636,340
Risk rating 5	3,975		—		21,126		353		—		1,167		—		26,621
Risk rating 6	—		—		—		743		1		6,448		—		7,192
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total construction/land development	538,732		854,728		353,332		572,456		38,089		97,057		140,990		2,595,384
Agricultural
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		2,111		—		—		—		—		—		2,111
Risk rating 3	29,103		46,291		36,778		17,266		11,114		42,619		5,317		188,488
Risk rating 4	16,094		26,835		20,058		15,415		1,916		46,253		4,774		131,345
Risk rating 5	4,005		—		—		—		—		—		—		4,005
Risk rating 6	—		—		1,757		—		—		1,400		—		3,157
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	49,202		75,237		58,593		32,681		13,030		90,272		10,091		329,106
Total commercial real estate loans	$	951,855	$	1,753,474	$	909,263	$	1,126,626	$	848,664	$	1,921,962	$	505,185	$	8,017,029
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	118	$	37	$	155
Risk rating 2	—		—		—		—		—		115		—		115
Risk rating 3	228,300		254,988		183,584		122,093		105,793		361,623		105,987		1,362,368
Risk rating 4	25,964		41,184		66,127		12,130		18,418		71,178		70,261		305,262
Risk rating 5	2,734		180		—		3,066		501		1,557		186		8,224
Risk rating 6	—		2,180		2,413		3,825		2,414		17,814		3,450		32,096
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		1		—		1
Total residential 1-4 family	256,998		298,532		252,124		141,114		127,126		452,406		179,921		1,708,221

	June 30, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	3,583		18,192		17,855		14,667		16,076		55,525		39,631		165,529
Risk rating 4	8,034		29,526		121,156		23,503		12,113		15,609		270		210,211
Risk rating 5	—		—		—		—		3,183		7,984		—		11,167
Risk rating 6	—		—		—		747		—		1,823		—		2,570
Risk rating 7	—		—		—		—		—		156		—		156
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	11,617		47,718		139,011		38,917		31,372		81,097		39,901		389,633
Total real estate	$	1,220,470	$	2,099,724	$	1,300,398	$	1,306,657	$	1,007,162	$	2,455,465	$	725,007	$	10,114,883
Consumer
Risk rating 1	$	3,194	$	5,020	$	1,607	$	955	$	703	$	1,370	$	1,476	$	14,325
Risk rating 2	—		—		1		224		631		—		—		856
Risk rating 3	146,607		310,018		186,953		146,049		131,267		151,552		6,150		1,078,596
Risk rating 4	3,207		1,284		621		2,177		552		2,336		74		10,251
Risk rating 5	33		12		110		—		12		559		—		726
Risk rating 6	17		71		30		172		—		1,215		7		1,512
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		77		—		77
Total consumer	153,058		316,405		189,322		149,577		133,165		157,109		7,707		1,106,343
Commercial and industrial
Risk rating 1	$	920	$	32,090	$	6,644	$	304	$	29	$	21,677	$	7,979	$	69,643
Risk rating 2	170		307		81		197		—		254		546		1,555
Risk rating 3	176,716		166,123		89,398		79,402		48,010		95,750		282,994		938,393
Risk rating 4	26,642		231,306		49,175		123,869		80,950		57,810		494,944		1,064,696
Risk rating 5	283		6,156		28,092		361		7,239		9,480		806		52,417
Risk rating 6	18		577		12,237		4,462		24,553		11,165		6,122		59,134
Risk rating 7	—		—		—		—		1,634		299		—		1,933
Risk rating 8	—		—		—		—		—		—		—		—
Total commercial and industrial	204,749		436,559		185,627		208,595		162,415		196,435		793,391		2,187,771
Agricultural and other
Risk rating 1	$	136	$	727	$	114	$	—	$	—	$	5	$	746	$	1,728
Risk rating 2	73		123		—		3,467		34		968		1,795		6,460
Risk rating 3	107,154		41,975		32,179		6,170		10,553		48,565		123,477		370,073
Risk rating 4	8,981		18,330		3,635		13,824		2,101		11,582		75,742		134,195
Risk rating 5	—		8		203		—		—		1,311		—		1,522
Risk rating 6	—		57		194		16		—		631		—		898
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	116,344		61,220		36,325		23,477		12,688		63,062		201,760		514,876
Total	$	1,694,621	$	2,913,908	$	1,711,672	$	1,688,306	$	1,315,430	$	2,872,071	$	1,727,865	$	13,923,873

	December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	284,127		281,982		266,990		341,642		195,301		891,035		194,640		2,455,717
Risk rating 4	111,697		32,788		115,989		301,520		90,747		345,254		90,028		1,088,023
Risk rating 5	—		10,930		2,239		23,117		49,926		189,038		—		275,250
Risk rating 6	—		—		23,723		2,224		11,751		32,372		224		70,294
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	395,824		325,700		408,941		668,503		347,725		1,457,699		284,892		3,889,284
Construction/land development
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		231		—		231
Risk rating 3	301,719		183,715		108,491		23,574		13,760		41,860		149,433		822,552
Risk rating 4	226,230		217,267		448,899		33,617		45,679		38,122		7,297		1,017,111
Risk rating 5	—		—		388		—		—		1,174		176		1,738
Risk rating 6	—		134		825		3		—		7,456		—		8,418
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total construction/land development	527,949		401,116		558,603		57,194		59,439		88,843		156,906		1,850,050
Agricultural
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	21,480		27,931		7,768		6,564		5,103		21,689		7,026		97,561
Risk rating 4	4,305		964		365		970		655		22,143		2,065		31,467
Risk rating 5	—		166		—		—		—		—		—		166
Risk rating 6	—		44		—		—		—		1,436		—		1,480
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	25,785		29,105		8,133		7,534		5,758		45,268		9,091		130,674
Total commercial real estate loans	$	949,558	$	755,921	$	975,677	$	733,231	$	412,922	$	1,591,810	$	450,889	$	5,870,008
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	76	$	89	$	165
Risk rating 2	—		—		—		—		—		29		—		29
Risk rating 3	210,970		147,523		119,861		94,848		82,474		296,687		85,836		1,038,199
Risk rating 4	8,885		3,397		56,839		16,887		21,874		53,578		36,642		198,102
Risk rating 5	—		—		3,065		1,220		582		1,366		193		6,426
Risk rating 6	1,136		2,252		2,432		2,063		1,263		16,305		6,580		32,031
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		1		—		1
Total residential 1-4 family	220,991		153,172		182,197		115,018		106,193		368,042		129,340		1,274,953

	December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	11,898		5,211		34,492		17,375		9,430		43,804		3,583		125,793
Risk rating 4	3,755		44,294		30,060		3,412		2,981		18,805		33,723		137,030
Risk rating 5	—		—		—		7,591		8,105		—		—		15,696
Risk rating 6	—		—		—		—		890		1,428		—		2,318
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	15,653		49,505		64,552		28,378		21,406		64,037		37,306		280,837
Total real estate	$	1,186,202	$	958,598	$	1,222,426	$	876,627	$	540,521	$	2,023,889	$	617,535	$	7,425,798
Consumer
Risk rating 1	$	4,441	$	1,799	$	1,237	$	920	$	226	$	1,383	$	1,893	$	11,899
Risk rating 2	—		—		45		639		—		8		—		692
Risk rating 3	221,986		173,511		132,148		109,810		67,992		92,076		1,098		798,621
Risk rating 4	3,547		923		2,944		1,776		158		2,641		79		12,068
Risk rating 5	—		116		—		15		—		131		—		262
Risk rating 6	69		34		39		117		—		1,711		7		1,977
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total consumer	230,043		176,383		136,413		113,277		68,376		97,950		3,077		825,519
Commercial and industrial
Risk rating 1	$	99,579	$	12,752	$	350	$	118	$	102	$	21,436	$	9,851	$	144,188
Risk rating 2	175		16		—		—		66		276		168		701
Risk rating 3	125,071		59,056		77,130		67,944		34,733		42,905		145,247		552,086
Risk rating 4	244,927		35,350		89,558		91,840		23,616		34,566		88,750		608,607
Risk rating 5	6,185		609		480		8,258		5,712		2,851		582		24,677
Risk rating 6	492		15,377		5,913		24,941		5,477		2,233		342		54,775
Risk rating 7	—		—		—		1,696		—		—		—		1,696
Risk rating 8	—		—		—		—		—		16		1		17
Total commercial and industrial	476,429		123,160		173,431		194,797		69,706		104,283		244,941		1,386,747
Agricultural and other
Risk rating 1	$	5,042	$	—	$	40	$	—	$	—	$	110	$	552	$	5,744
Risk rating 2	—		—		3,467		—		—		909		983		5,359
Risk rating 3	54,534		44,030		5,158		7,092		2,009		46,570		8,750		168,143
Risk rating 4	1,544		218		154		1,590		1,226		1,224		10,842		16,798
Risk rating 5	—		—		—		—		—		1,297		—		1,297
Risk rating 6	53		—		23		13		33		562		—		684
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	61,173		44,248		8,842		8,695		3,268		50,672		21,127		198,025
Total	$	1,953,847	$	1,302,389	$	1,541,112	$	1,193,396	$	681,871	$	2,276,794	$	886,680	$	9,836,089

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company also evaluates credit quality based on the aging status of the loan, which was previously presented and by payment activity. The following tables present the amortized cost of performing and nonperforming loans as of June 30, 2022 and December 31, 2021.

	June 30, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	363,921	$	823,509	$	483,438	$	476,985	$	774,705	$	1,485,540	$	353,981	$	4,762,079
Non-performing	—		—		13,900		44,504		22,840		249,093		123		330,460
Total non-farm/non-residential	363,921		823,509		497,338		521,489		797,545		1,734,633		354,104		5,092,539
Construction/land development
Performing	$	538,732	$	854,677	$	353,332	$	571,712	$	37,933	$	96,712	$	140,990	$	2,594,088
Non-performing	—		51		—		744		156		345		—		1,296
Total construction/ land development	538,732		854,728		353,332		572,456		38,089		97,057		140,990		2,595,384
Agricultural
Performing	$	49,202	$	75,237	$	58,593	$	32,681	$	13,030	$	89,367	$	10,091	$	328,201
Non-performing	—		—		—		—		—		905		—		905
Total agricultural	49,202		75,237		58,593		32,681		13,030		90,272		10,091		329,106
Total commercial real estate loans	$	951,855	$	1,753,474	$	909,263	$	1,126,626	$	848,664	$	1,921,962	$	505,185	$	8,017,029
Residential real estate loans
Residential 1-4 family
Performing	$	256,998	$	297,261	$	249,716	$	137,945	$	125,699	$	442,616	$	177,272	$	1,687,507
Non-performing	—		1,271		2,408		3,169		1,427		9,790		2,649		20,714
Total residential 1-4 family	256,998		298,532		252,124		141,114		127,126		452,406		179,921		1,708,221
Multifamily residential
Performing	$	11,617	$	47,718	$	139,011	$	38,917	$	31,372	$	79,989	$	39,901	$	388,525
Non-performing	—		—		—		—		—		1,108		—		1,108
Total multifamily residential	11,617		47,718		139,011		38,917		31,372		81,097		39,901		389,633
Total real estate	$	1,220,470	$	2,099,724	$	1,300,398	$	1,306,657	$	1,007,162	$	2,455,465	$	725,007	$	10,114,883
Consumer
Performing	$	153,058	$	316,350	$	189,302	$	149,430	$	133,165	$	155,962	$	7,700	$	1,104,967
Non-performing	—		55		20		147		—		1,147		7		1,376
Total consumer	153,058		316,405		189,322		149,577		133,165		157,109		7,707		1,106,343
Commercial and industrial
Performing	$	204,749	$	435,803	$	182,667	$	204,643	$	153,210	$	192,144	$	787,229	$	2,160,445
Non-performing	—		756		2,960		3,952		9,205		4,291		6,162		27,326
Total commercial and industrial	204,749		436,559		185,627		208,595		162,415		196,435		793,391		2,187,771
Agricultural and other
Performing	$	116,344	$	61,220	$	36,122	$	23,461	$	12,688	$	61,852	$	201,274	$	512,961
Non-performing	—		—		203		16		—		1,210		486		1,915
Total agricultural and other	116,344		61,220		36,325		23,477		12,688		63,062		201,760		514,876
Total	$	1,694,621	$	2,913,908	$	1,711,672	$	1,688,306	$	1,315,430	$	2,872,071	$	1,727,865	$	13,923,873

	December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	395,824	$	315,447	$	394,061	$	648,351	$	298,086	$	1,268,731	$	284,865	$	3,605,365
Non-performing	—		10,253		14,880		20,152		49,639		188,968		27		283,919
Total non-farm/non-residential	395,824		325,700		408,941		668,503		347,725		1,457,699		284,892		3,889,284
Construction/land development
Performing	$	527,949	$	400,982	$	557,778	$	57,024	$	59,439	$	85,197	$	156,906	$	1,845,275
Non-performing	—		134		825		170		—		3,646		—		4,775
Total construction/land development	527,949		401,116		558,603		57,194		59,439		88,843		156,906		1,850,050
Agricultural
Performing	$	25,785	$	28,939	$	8,133	$	7,534	$	5,758	$	44,537	$	9,091	$	129,777
Non-performing	—		166		—		—		—		731		—		897
Total agricultural	25,785		29,105		8,133		7,534		5,758		45,268		9,091		130,674
Total commercial real estate loans	$	949,558	$	755,921	$	975,677	$	733,231	$	412,922	$	1,591,810	$	450,889	$	5,870,008
Residential real estate loans
Residential 1-4 family
Performing	$	220,380	$	151,459	$	180,113	$	113,845	$	105,129	$	360,700	$	123,552	$	1,255,178
Non-performing	611		1,713		2,084		1,173		1,064		7,342		5,788		19,775
Total residential 1-4 family	220,991		153,172		182,197		115,018		106,193		368,042		129,340		1,274,953
Multifamily residential
Performing	$	15,653	$	49,505	$	64,552	$	28,378	$	21,406	$	62,737	$	37,306	$	279,537
Non-performing	—		—		—		—		—		1,300		—		1,300
Total multifamily residential	15,653		49,505		64,552		28,378		21,406		64,037		37,306		280,837
Total real estate	$	1,186,202	$	958,598	$	1,222,426	$	876,627	$	540,521	$	2,023,889	$	617,535	$	7,425,798
Consumer
Performing	$	229,986	$	176,355	$	136,403	$	113,160	$	68,376	$	96,506	$	3,070	$	823,856
Non-performing	57		28		10		117		—		1,444		7		1,663
Total consumer	230,043		176,383		136,413		113,277		68,376		97,950		3,077		825,519
Commercial and industrial
Performing	$	476,424	$	122,999	$	168,984	$	185,569	$	66,928	$	103,391	$	244,259	$	1,368,554
Non-performing	5		161		4,447		9,228		2,778		892		682		18,193
Total commercial and industrial	476,429		123,160		173,431		194,797		69,706		104,283		244,941		1,386,747
Agricultural and other
Performing	$	61,173	$	44,248	$	8,819	$	8,682	$	3,235	$	49,725	$	21,127	$	197,009
Non-performing	—		—		23		13		33		947		—		1,016
Total agricultural and other	61,173		44,248		8,842		8,695		3,268		50,672		21,127		198,025
Total	$	1,953,847	$	1,302,389	$	1,541,112	$	1,193,396	$	681,871	$	2,276,794	$	886,680	$	9,836,089

Presentation of Troubled Debt Restructurings ("TDRs") by Class

The following is a presentation of troubled debt restructurings (“TDRs”) by class as of June 30, 2022 and December 31, 2021:

	June 30, 2022
	Number of Loans	Pre- Modification Outstanding Balance		Rate Modification		Term Modification		Rate & Term Modification		Post- Modification Outstanding Balance
	(Dollars in thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	11	$	6,085	$	3,404	$	608	$	82	$	4,094
Construction/land development	1	216		199		—		—		199
Agricultural	—	—		—		—		—		—
Residential real estate loans
Residential 1-4 family	14	2,166		660		112		299		1,071
Multifamily residential	1	1,130		952		—		—		952
Total real estate	27	9,597		5,215		720		381		6,316
Consumer	4	23		12		—		3		15
Commercial and industrial	10	2,099		152		41		74		267
Total	41	$	11,719	$	5,379	$	761	$	458	$	6,598

	December 31, 2021
	Number of Loans	Pre- Modification Outstanding Balance		Rate Modification		Term Modification		Rate & Term Modification		Post- Modification Outstanding Balance
	(Dollars in thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	12	$	6,119	$	3,581	$	623	$	85	$	4,289
Construction/land development	2	240		210		1		—		211
Agricultural	1	282		262		—		—		262
Residential real estate loans
Residential 1-4 family	15	2,328		844		117		332		1,293
Multifamily residential	1	1,130		1,144		—		—		1,144
Total real estate	31	10,099		6,041		741		417		7,199
Consumer	4	22		13		—		3		16
Commercial and industrial	9	2,353		172		65		74		311
Total	44	$	12,474	$	6,226	$	806	$	494	$	7,526

Presentation of TDR's on Non-Accrual Status

The following is a presentation of TDRs on non-accrual status as of June 30, 2022 and December 31, 2021 because they are not in compliance with the modified terms:

	June 30, 2022			December 31, 2021
	Number of Loans	Recorded Balance		Number of Loans	Recorded Balance
	(Dollars in thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	1	$	5	2	$	7
Construction/land development	1	199		1	210
Agricultural	—	—		1	262
Residential real estate loans
Residential 1-4 family	5	352		5	388
Total real estate	7	556		9	867
Consumer	3	3		3	3
Commercial and industrial	8	176		6	206
Total	18	$	735	18	$	1,076

Summary of Total Foreclosed Assets

The following is a presentation of total foreclosed assets as of June 30, 2022 and December 31, 2021:

	June 30, 2022		December 31, 2021
	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	49	$	536
Construction/land development	55		834
Residential real estate loans
Residential 1-4 family	269		260
Total foreclosed assets held for sale	$	373	$	1,630

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Goodwill and Core Deposits and Other Intangibles (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Changes in Carrying Amount and Accumulated Amortization of Company's Goodwill and Core Deposits and Other Intangibles

Changes in the carrying amount and accumulated amortization of the Company’s goodwill and core deposits and other intangibles at June 30, 2022 and December 31, 2021, were as follows:

	June 30, 2022		December 31, 2021
	(In thousands)
Goodwill
Balance, beginning of period	$	973,025	$	973,025
Acquisition of Happy Bancshares	425,375		—
Balance, end of period	$	1,398,400	$	973,025

	June 30, 2022		December 31, 2021
	(In thousands)
Core Deposit and Other Intangibles
Balance, beginning of period	$	25,045	$	30,728
Acquisition of Happy Bancshares	42,263		—
Amortization expense	(3,898)		(2,842)
Balance, June 30	63,410		27,886
Amortization expense			(2,841)
Balance, end of year			$	25,045

Summary of Carrying Amount and Accumulated Amortization of Core Deposits and Other Intangibles

The carrying basis and accumulated amortization of core deposits and other intangibles at June 30, 2022 and December 31, 2021 were:

	June 30, 2022		December 31, 2021
	(In thousands)
Gross carrying basis	$	128,888	$	86,625
Accumulated amortization	(65,478)		(61,580)
Net carrying amount	$	63,410	$	25,045

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Securities Sold Under Agreements to Repurchase (Tables)

6 Months Ended

Jun. 30, 2022

Securities Sold under Agreements to Repurchase [Abstract]

Summary of Remaining Contractual Maturity of Securities Sold Under Agreements to Repurchase

The remaining contractual maturity of securities sold under agreements to repurchase in the consolidated balance sheets as of June 30, 2022 and December 31, 2021 is presented in the following tables:

	June 30, 2022
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	6,540	$	—	$	—	$	—	$	6,540
Mortgage-backed securities	3,300		—		—		—		3,300
State and political subdivisions	105,319		—		—		—		105,319
Other securities	3,414		—		—		—		3,414
Total borrowings	$	118,573	$	—	$	—	$	—	$	118,573

	December 31, 2021
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	8,433	$	—	$	—	$	—	$	8,433
Mortgage-backed securities	7,920		—		—		—		7,920
State and political subdivisions	122,173		—		—		—		122,173
Other securities	2,360		—		—		—		2,360
Total borrowings	$	140,886	$	—	$	—	$	—	$	140,886

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Subordinated Debentures (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Preferred Trust Securities and Subordinated Debentures

Subordinated debentures at June 30, 2022 and December 31, 2021 consisted of subordinated debt securities and guaranteed payments on trust preferred securities with the following components:

	As of June 30, 2022		As of December 31, 2021
	(In thousands)
Trust preferred securities
Subordinated debentures, issued in 2004, due 2034, floating rate of 4.00% above the three-month LIBOR rate, reset quarterly, currently callable without penalty	$	2,165	$	—
Subordinated debentures, issued in 2003, due 2034, floating rate of 2.95% above the three-month LIBOR rate, reset quarterly, currently callable without penalty	10,310		—
Subordinated debentures, issued in 2005, due 2035, floating rate of 2.15% above the three-month LIBOR rate, reset quarterly, currently callable without penalty	5,155		4,501
Subordinated debentures, issued in 2006, due 2036, fixed rate of 6.75% during the first five years and at a floating rate of 1.85% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		3,093
Subordinated debentures, issued in 2004, due 2034, fixed rate of 6.00% during the first five years and at a floating rate of 2.00% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		15,464
Subordinated debentures, issued in 2005, due 2035, fixed rate of 5.84% during the first five years and at a floating rate of 1.45% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		25,774
Subordinated debentures, issued in 2004, due 2034, fixed rate of 4.29% during the first five years and at a floating rate of 2.50% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		16,495
Subordinated debentures, issued in 2006, due 2036, fixed rate of 7.38% during the first five years and at a floating rate of 1.62% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	—		5,942
Subordinated debt securities
Subordinated notes, net of issuance costs, issued in 2020, due 2030, fixed rate of 5.50% during the first five years and at a floating rate of 534.5 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2025 without penalty	144,063		—
Subordinated notes, net of issuance costs, issued in 2022, due 2032, fixed rate of 3.125% during the first five years and at a floating rate of 182 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2027 without penalty	296,762		—
Subordinated notes, net of issuance costs, issued in 2017, due 2027, fixed rate of 5.625% during the first five years and at a floating rate of 3.575% above the then three-month LIBOR rate, reset quarterly, thereafter, callable in 2022 without penalty	—		299,824
Total	$	458,455	$	371,093

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Summary of Components of Provision (Benefit) for Income Taxes

The following is a summary of the components of the provision for income taxes for the three and six months ended June 30, 2022 and 2021:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands)
Current:
Federal	$	19,242	$	15,175	$	33,207	$	38,058
State	5,077		5,024		8,761		12,599
Total current	24,319		20,199		41,968		50,657
Deferred:
Federal	(16,636)		3,661		(14,752)		2,488
State	(4,389)		1,212		(3,893)		823
Total deferred	(21,025)		4,873		(18,645)		3,311
Income tax expense	$	3,294	$	25,072	$	23,323	$	53,968

Reconciliation between Statutory Federal Income Tax Rate and Effective Income Tax Rate

The reconciliation between the statutory federal income tax rate and effective income tax rate is as follows for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Statutory federal income tax rate	21.00	%	21.00	%	21.00	%	21.00	%
Effect of non-taxable interest income	(8.30)		(1.03)		(2.53)		(0.97)
Stock compensation	0.90		0.16		0.58		0.25
State income taxes, net of federal benefit	(4.38)		4.18		2.56		4.22
Executive officer compensation & other	7.87		(0.24)		0.77		(0.48)
Effective income tax rate	17.09	%	24.07	%	22.38	%	24.02	%

Differences between Tax Basis of Assets and Liabilities

The types of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:

	June 30, 2022		December 31, 2021
	(In thousands)
Deferred tax assets:
Allowance for credit losses	$	84,584	$	68,644
Deferred compensation	5,310		5,342
Stock compensation	6,211		5,044
Non-accrual interest income	1,914		694
Real estate owned	109		109
Unrealized loss on investment securities, available-for-sale	72,534		—
Loan discounts	8,550		4,169
Tax basis premium/discount on acquisitions	2,216		3,220
Investments	34,527		263
Deposits	207		—
Other	17,392		5,283
Gross deferred tax assets	233,554		92,768
Deferred tax liabilities:
Accelerated depreciation on premises and equipment	4,095		761
Unrealized gain on securities	—		4,220
Core deposit intangibles	15,360		5,736
FHLB dividends	2,782		2,820
Other	2,732		941
Gross deferred tax liabilities	24,969		14,478
Net deferred tax assets	$	208,585	$	78,290

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Common Stock, Compensation Plans and Other (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Summary of Stock Option Transactions under Plan

The table below summarizes the stock option transactions under the 2022 Plan at June 30, 2022 and December 31, 2021 and changes during the three-month period and year then ended:

	For the Six Months Ended June 30, 2022			For the Year Ended December 31, 2021
	Shares (000)	Weighted- Average Exercisable Price		Shares (000)	Weighted- Average Exercisable Price
Outstanding, beginning of year	3,015	$	20.06	3,254	$	19.77
Granted	178	21.04		15	21.68
Forfeited/Expired	(29)	22.83		(57)	22.44
Exercised	(20)	10.63		(197)	14.78
Outstanding, end of period	3,144	20.14		3,015	20.06
Exercisable, end of period	1,813	$	18.46	1,543	$	17.46

Summary of Stock Options on Valuation Assumptions

The assumptions used in determining the fair value of the 2022 and 2021 stock option grants were as follows:

	For the Six Months Ended June 30, 2022		For the Year Ended December 31, 2021
Expected dividend yield	3.15	%	2.59	%
Expected stock price volatility	31.22	%	70.13	%
Risk-free interest rate	2.80	%	0.75	%
Expected life of options	6.5 years		6.5 years

Summary of Currently Outstanding and Exercisable Options

The following is a summary of currently outstanding and exercisable options at June 30, 2022:

Options Outstanding					Options Exercisable
Exercise Prices	Options Outstanding Shares (000)	Weighted- Average Remaining Contractual Life (in years)	Weighted- Average Exercise Price		Options Exercisable Shares (000)	Weighted- Average Exercise Price
$6.56 to $8.62	140	0.55	$	8.62	140	$	8.62
$9.54 to $14.71	140	2.05	13.23		140	13.23
$16.77 to $16.86	130	2.14	16.80		130	16.80
$17.12 to $17.36	92	2.72	17.13		92	17.13
$17.40 to $18.46	871	3.13	18.45		738	18.45
$18.50 to $20.16	41	6.78	19.05		23	19.05
$20.46 to $21.25	293	6.58	20.79		149	21.10
$21.31 to $22.22	132	6.68	22.18		82	22.21
$22.70 to $23.32	1,208	6.06	23.32		246	23.32
$23.51 to $25.96	99	5.81	25.39		73	25.85
	3,144				1,813

Summary of Company's Restricted Stock Issued and Outstanding

The table below summarized the activity for the Company’s restricted stock issued and outstanding at June 30, 2022 and December 31, 2021 and changes during the period and year then ended:

	As of June 30, 2022		As of December 31, 2021
	(In thousands)
Beginning of year	1,231		1,371
Issued	391		216
Vested	(177)		(320)
Forfeited	(31)		(36)
End of period	1,414		1,231
Amount of expense for six months and twelve months ended, respectively	$	3,664	$	7,112

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Non-Interest Expense (Tables)

6 Months Ended

Jun. 30, 2022

Other Income and Expenses [Abstract]

Components of Non-Interest Expense

The table below shows the components of non-interest expense for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands)
Salaries and employee benefits	$	65,795	$	42,462	$	109,346	$	84,521
Occupancy and equipment	14,256		9,042		23,400		18,279
Data processing expense	10,094		5,893		17,133		11,763
Merger and acquisition expenses	48,731		—		49,594		—
Other operating expenses:
Advertising	2,117		1,194		3,383		2,240
Amortization of intangibles	2,477		1,421		3,898		2,842
Electronic banking expense	3,352		2,616		5,890		4,854
Directors’ fees	375		414		779		797
Due from bank service charges	396		273		666		522
FDIC and state assessment	2,390		1,108		4,058		2,471
Insurance	973		787		1,743		1,568
Legal and accounting	1,061		1,058		1,858		1,904
Other professional fees	2,254		1,796		3,863		3,409
Operating supplies	995		465		1,749		952
Postage	556		292		862		630
Telephone	384		365		721		711
Other expense	9,276		3,796		13,435		8,385
Total other operating expenses	26,606		15,585		42,905		31,285
Total non-interest expense	$	165,482	$	72,982	$	242,378	$	145,848

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Leases (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Minimum Rental Commitments under Operating Leases

The minimum rental commitments under these noncancelable operating leases are as follows (in thousands) as of June 30, 2022 and December 31, 2021:

	June 30, 2022		December 31, 2021
2022	$	4,547	$	7,714
2023	8,153		6,574
2024	7,296		6,001
2025	6,568		5,510
2026	6,308		5,389
Thereafter	30,335		24,999
Total future minimum lease payments	$	63,207	$	56,187
Discount effect of cash flows	(14,505)		(13,778)
Present value of net future minimum lease payments	$	48,702	$	42,409

Additional Information of Lease Expense

Additional information (dollar amounts in thousands):

	For the Three Months Ended						Six Months Ended
Lease expense:	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Operating lease expense	$	2,116		$	1,981		$	3,939		$	3,990
Short-term lease expense	—			1			1			5
Variable lease expense	218			251			443			508
Total lease expense	$	2,334		$	2,233		$	4,383		$	4,503
Other information:
Cash paid for amounts included in the measurement of lease liabilities	$	2,154		$	1,974		$	3,983		$	3,968
Weighted-average remaining lease term (in years)	9.33			9.75			9.42			9.84
Weighted-average discount rate	3.38		%	3.53		%	3.39		%	3.53		%

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Additional Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2022

Supplemental Cash Flow Elements [Abstract]

Summary of Additional Cash Flow Information

The following is a summary of the Company’s additional cash flow information during the six-month periods ended:

	June 30,
	2022		2021
	(In thousands)
Interest paid	$	27,605	$	28,428
Income taxes paid	38,553		58,685
Assets acquired by foreclosure	9		1,951

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Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The following table presents the estimated fair values of the Company’s financial instruments. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

	June 30, 2022
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	2,816,376	$	2,816,376	1
Investment securities - available for sale	3,791,509		3,791,509		2
Investment securities - held-to-maturity (U.S. Treasuries)	277,688		276,029		1
Investment securities - held-to-maturity (state and political subdivisions)	1,089,093		997,251		2
Loans receivable, net of impaired loans and allowance	13,302,682		13,695,308		3
Accrued interest receivable	80,274		80,274		1
FHLB, FRB & FNBB Bank stock; other equity investments	182,399		182,399		3
Marketable equity securities	33,631		33,631		1
Financial liabilities:
Deposits:
Demand and non-interest bearing	$	6,036,583	$	6,036,583	1
Savings and interest-bearing transaction accounts	12,424,192		12,424,192		1
Time deposits	1,119,297		1,096,797		3
Securities sold under agreements to repurchase	118,573		118,573		1
FHLB and other borrowed funds	400,000		400,025		2
Accrued interest payable	9,203		9,203		1
Subordinated debentures	458,455		430,470		3

	December 31, 2021
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	3,650,315	$	3,650,315	1
Investment securities - available for sale	3,119,807		3,119,807		2
Loans receivable, net of impaired loans and allowance	9,319,421		9,503,261		3
Accrued interest receivable	46,736		46,736		1
FHLB, FRB & FNBB Bank stock; other equity investments	124,638		124,638		3
Marketable equity securities	17,110		17,110		1
Financial liabilities:
Deposits:
Demand and non-interest bearing	$	4,127,878	$	4,127,878	1
Savings and interest-bearing transaction accounts	9,251,805		9,251,805		1
Time deposits	880,887		901,280		3
Securities sold under agreements to repurchase	140,886		140,886		1
FHLB and other borrowed funds	400,000		401,362		2
Accrued interest payable	4,798		4,798		1
Subordinated debentures	371,093		374,894		3

XML

Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2022 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable operating segment	1

XML

Nature of Operations and Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings per Common Share (EPS) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income	$ 15,978	$ 64,892	$ 79,070	$ 91,602	$ 80,870	$ 170,672
Average shares outstanding (in shares)	205,683		164,781		184,851	165,018
Effect of common stock options (in shares)	332		445		372	296
Average diluted shares outstanding (in shares)	206,015		165,226		185,223	165,314
Basic earnings per share (in dollars per share)	$ 0.08		$ 0.48		$ 0.44	$ 1.03
Diluted earnings per share (in dollars per share)	$ 0.08		$ 0.48		$ 0.44	$ 1.03

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Business Combinations - Additional Information (Detail) - Happy Bancshares, Inc. - USD ($) $ in Thousands, shares in Millions		3 Months Ended	6 Months Ended
	Apr. 01, 2022	Jun. 30, 2022	Jun. 30, 2022
Business Acquisition [Line Items]
Total transaction value	$ 962,538
Total assets acquired	6,755,152	$ 6,683,052	$ 6,683,052
Loans receivable	3,657,009	3,652,706	3,652,706
Total deposits	5,854,307	5,855,210	5,855,210
Adjustment to market value - investment securities	8,485
Adjustment to market value - bank premises and equipment	(11,575)
Fair value adjustment - deposits	$ 903
Pro forma merger expenses		48,700	49,600
Pro forma credit losses on acquired loans		45,200	45,200
Pro forma credit losses on acquired unfunded commitments		11,400	11,400
Pro forma credit losses on acquired investment securities		$ 2,000	$ 2,000
Common Stock
Business Acquisition [Line Items]
Business acquisition, equity interest issuable, number of shares (in shares)	42.4
Business acquisition, equity interest issuable, value	$ 958,800
Total transaction value	962,500
Stock-based Awards
Business Acquisition [Line Items]
Business acquisition, equity interest issuable, value	$ 3,700

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Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
	Apr. 01, 2022	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill		$ 1,398,400	$ 973,025	$ 973,025
Goodwill		425,375	$ 0
Happy Bancshares, Inc.
Business Acquisition [Line Items]
Cash and due from banks	$ 112,999	112,867
Measurement Period Adjustments, Cash and due from banks	(132)
Interest-bearing deposits with other banks	746,031	746,031
Measurement Period Adjustments, Interest-bearing deposits with other banks	0
Cash and cash equivalents	859,030	858,898
Measurement Period Adjustments, Cash and cash equivalents	(132)
Investment securities - available-for-sale, net of allowance for credit losses	1,773,540	1,782,025
Measurement Period Adjustments, Investment securities - available-for-sale, net of allowance for credit losses	8,485
Total investment securities	1,773,540	1,782,025
Measurement Period Adjustments, Total investment securities	8,485
Loans receivable	3,657,009	3,652,706
Measurement Period Adjustments, Loans receivable	(4,303)
Allowance for credit losses	(42,224)	(16,816)
Measurement Period Adjustments, Allowance for credit losses	25,408
Loans receivable, net	3,614,785	3,635,890
Measurement Period Adjustments, Loans receivable, net	21,105
Bank premises and equipment, net	153,642	142,067
Measurement Period Adjustments, Bank premises and equipment, net	(11,575)
Foreclosed assets held for sale	193	116
Measurement Period Adjustments, Foreclosed assets held for sale	(77)
Cash value of life insurance	105,049	105,052
Measurement Period Adjustments, Cash value of life insurance	3
Accrued interest receivable	31,575	31,575
Measurement Period Adjustments, Accrued interest receivable	0
Deferred tax asset, net	32,908	35,414
Measurement Period Adjustments, Deferred tax asset, net	2,506
Goodwill	130,428	0
Measurement Period Adjustments, Goodwill	(130,428)
Core deposit and other intangibles	10,672	42,263
Measurement Period Adjustments, Core deposit and other intangibles	31,591
Other assets	43,330	49,752
Measurement Period Adjustments, Other assets	6,422
Total assets acquired	6,755,152	6,683,052
Measurement Period Adjustments, Total assets acquired	(72,100)
Demand and non-interest-bearing	1,932,756	1,932,756
Measurement Period Adjustments, Demand and non-interest-bearing	0
Savings and interest-bearing transaction accounts	3,519,652	3,519,652
Measurement Period Adjustments, Savings and interest-bearing transaction accounts	0
Time deposits	401,899	402,802
Measurement Period Adjustments, Time deposits	903
Total deposits	5,854,307	5,855,210
Measurement Period Adjustments, Total deposits	903
FHLB and other borrowed funds	74,212	78,330
Measurement Period Adjustments, FHLB and other borrowed funds	4,118
Accrued interest payable and other liabilities	50,889	44,759
Measurement Period Adjustments, Accrued interest payable and other liabilities	(6,130)
Subordinated debentures	159,965	167,590
Measurement Period Adjustments, Subordinated Debt	7,625
Total liabilities assumed	6,139,373	6,145,889
Measurement Period Adjustments, Total liabilities assumed	6,516
Total equity assumed	615,779	0
Measurement Period Adjustments, Total equity assumed	(615,779)
Total liabilities and equity assumed	6,755,152	6,145,889
Measurement Period Adjustments, Total liabilities and equity assumed	(609,263)
Net assets acquired		$ 537,163
Purchase price	962,538
Goodwill	$ 425,375

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Business Combinations - Pro Forma Information (Details) - Happy Bancshares, Inc. - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Business Acquisition [Line Items]
Total interest income	$ 217,013	$ 211,279	$ 419,318	$ 418,143
Total non-interest income	44,581	44,427	88,151	101,485
Net income available to all shareholders	$ 96,923	$ 34,536	$ 182,557	$ 129,653
Basic earnings per common share (in dollars per share)	$ 0.47	$ 0.17	$ 0.89	$ 0.63
Diluted earnings per common share (in dollars per share)	$ 0.47	$ 0.17	$ 0.88	$ 0.62

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Business Combinations PCD Loans (Details) - Happy Bancshares, Inc. - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Apr. 01, 2022	Jun. 30, 2022	Jun. 30, 2022
Business Acquisition [Line Items]
Par value	$ 165,028
Allowance for credit losses at acquisition	(16,816)	$ (16,816)	$ (16,816)
Premium on acquired loans	684
Purchase price	$ 148,896

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Investment Securities - Amortized Cost and Fair Value of Securities Available-for-Sale (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 4,080,861	$ 3,106,483
Allowance for Credit Losses	(842)	(842)	$ (842)	$ (842)
Net Carrying Amount	4,080,019	3,105,641
Gross Unrealized Gains	4,735	41,058
Gross Unrealized (Losses)	(293,245)	(26,892)
Estimated Fair Value	3,791,509	3,119,807
U.S. government-sponsored enterprises
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	465,293	433,829
Allowance for Credit Losses	0	0
Net Carrying Amount	465,293	433,829
Gross Unrealized Gains	2,822	2,375
Gross Unrealized (Losses)	(16,658)	(3,225)
Estimated Fair Value	451,457	432,979
Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,780,519	1,175,185
Allowance for Credit Losses	0	0
Net Carrying Amount	1,780,519	1,175,185
Gross Unrealized Gains	657	4,085
Gross Unrealized (Losses)	(152,990)	(18,551)
Estimated Fair Value	1,628,186	1,160,719
Commercial mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	363,117	372,702
Allowance for Credit Losses	0	0
Net Carrying Amount	363,117	372,702
Gross Unrealized Gains	14	6,521
Gross Unrealized (Losses)	(13,067)	(1,968)
Estimated Fair Value	350,064	377,255
State and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,027,748	973,318
Allowance for Credit Losses	(842)	(842)
Net Carrying Amount	1,026,906	972,476
Gross Unrealized Gains	1,111	26,296
Gross Unrealized (Losses)	(93,486)	(1,794)
Estimated Fair Value	934,531	996,978
Other securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	444,184	151,449
Allowance for Credit Losses	0	0
Net Carrying Amount	444,184	151,449
Gross Unrealized Gains	131	1,781
Gross Unrealized (Losses)	(17,044)	(1,354)
Estimated Fair Value	$ 427,271	$ 151,876

XML

Investment Securities Amortized Cost and Fair Value of Securities Held-to-Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 1,368,786
Allowance for Credit Losses	(2,005)
Amortized Cost	1,366,781	$ 0
Gross Unrealized Gains	26
Gross Unrealized (Losses)	(93,527)
Estimated Fair Value	1,273,280
U.S. Treasuries
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	277,688
Allowance for Credit Losses	0	0	$ 0
Amortized Cost	277,688
Gross Unrealized Gains	0
Gross Unrealized (Losses)	(1,659)
Estimated Fair Value	276,029
State and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,091,098
Allowance for Credit Losses	(2,005)	$ 0	$ 0
Amortized Cost	1,089,093
Gross Unrealized Gains	26
Gross Unrealized (Losses)	(91,868)
Estimated Fair Value	$ 997,251

XML

Investment Securities - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) security	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) security	Jun. 30, 2021 USD ($)	Apr. 01, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Carrying value of investment securities	$ 2,770,000,000		$ 2,770,000,000			$ 1,150,000,000
Investment securities pledged as collateral	118,600,000		118,600,000			140,900,000
Available for sale securities sold	0	$ 0	0	$ 17,900,000
Realized gains (losses) on available for sale securities		0		219,000
Allowance for credit loss, held-to-maturity	2,005,000		2,005,000
Investment securities — held-to-maturity, net of allowance for credit losses	1,366,781,000		1,366,781,000			0
Investment securities, provision for credit losses	842,000	$ 842,000	842,000	$ 842,000		842,000	$ 842,000
Fair value of unrealized losses	$ 63,222,000		$ 63,222,000			6,441,000
Percentage of Company's investment portfolio			33.40%
Maturity description of investment portfolio			five years or less
Number of investment securities available for sale | security	1,644		1,644
Number of investment in debt securities available-for-sale unrealized loss position | security	1,333		1,333
Debt securities available for sale unrealized loss position	$ 293,245,000		$ 293,245,000			26,892,000
Number of investment securities held to maturity | security	482		482
Number of investments in debt securities held-to-maturity unrealized loss position | security	480		480
Unrealized losses	$ 93,527,000		$ 93,527,000
Happy Bancshares, Inc.
Schedule of Available-for-sale Securities [Line Items]
Investment securities - available-for-sale, net of allowance for credit losses	1,782,025,000		1,782,025,000		$ 1,773,540,000
Investments reclassified from available-for-sale to held-to-maturity			1,120,000,000
U.S. government-sponsored enterprises
Schedule of Available-for-sale Securities [Line Items]
Investment securities, provision for credit losses	0		0			0
Fair value of unrealized losses	$ 6,526,000		$ 6,526,000			1,869,000
Number of investment in debt securities available-for-sale unrealized loss position | security	58		58
Debt securities available for sale unrealized loss position	$ 16,658,000		$ 16,658,000			3,225,000
Number of investments in debt securities held-to-maturity unrealized loss position | security	5		5
Unrealized losses	$ 1,700,000		$ 1,700,000
Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Investment securities, provision for credit losses	0		0			0
Fair value of unrealized losses	$ 47,160,000		$ 47,160,000			3,305,000
Number of investment in debt securities available-for-sale unrealized loss position | security	575		575
Debt securities available for sale unrealized loss position	$ 152,990,000		$ 152,990,000			18,551,000
Commercial mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Investment securities, provision for credit losses	0		0			0
Fair value of unrealized losses	$ 3,560,000		$ 3,560,000			717,000
Number of investment in debt securities available-for-sale unrealized loss position | security	152		152
Debt securities available for sale unrealized loss position	$ 13,067,000		$ 13,067,000			1,968,000
State and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Allowance for credit loss, held-to-maturity	2,005,000		2,005,000			0	$ 0
Investment securities — held-to-maturity, net of allowance for credit losses	$ 1,089,093,000		$ 1,089,093,000
Percentage of investment securities - held-to-maturity	79700.00%		79700.00%
Investment securities, provision for credit losses	$ 842,000		$ 842,000			842,000
Fair value of unrealized losses	$ 4,210,000		$ 4,210,000			512,000
Number of investment in debt securities available-for-sale unrealized loss position | security	466		466
Debt securities available for sale unrealized loss position	$ 93,486,000		$ 93,486,000			1,794,000
Number of investments in debt securities held-to-maturity unrealized loss position | security	475		475
Unrealized losses	$ 91,868,000		$ 91,868,000
Other securities
Schedule of Available-for-sale Securities [Line Items]
Investment securities, provision for credit losses	0		0			0
Fair value of unrealized losses	$ 1,766,000		$ 1,766,000			38,000
Number of investment in debt securities available-for-sale unrealized loss position | security	82		82
Debt securities available for sale unrealized loss position	$ 17,044,000		$ 17,044,000			$ 1,354,000

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Investment Securities - Amortized Cost and Estimated Fair Value of Securities Contractual Maturity (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Amortized Cost
Due in one year or less, Amortized Cost	$ 21,153
Due in one year or less, Amortized Cost	249,949
Due after one year through five years, Amortized Cost	145,743
Due after one year through five years, Amortized Cost	4,757
Due after five years through ten years, Amortized Cost	487,573
Due after five years through ten years, Amortized Cost	181,961
Due after ten years, Amortized Cost	1,277,149
Due after ten years, Amortized Cost	932,119
Amortized Cost	4,080,861	$ 3,106,483
Amortized Cost	1,368,786
Estimated Fair Value
Due in one year or less, Estimated Fair Value	21,175
Due in one year or less, Estimated Fair Value	249,689
Due after one year through five years, Estimated Fair Value	140,380
Due after one year through five years, Estimated Fair Value	4,690
Due after five years through ten years, Estimated Fair Value	459,863
Due after five years through ten years, Estimated Fair Value	168,691
Due after ten years, Estimated Fair Value	1,186,305
Due after ten years, Estimated Fair Value	850,210
Total, Estimated Fair Value	3,791,509	3,119,807
Estimated Fair Value	1,273,280
Residential mortgage-backed securities
Amortized Cost
Securities not due at a single maturity date, Amortized Cost	1,780,519
Securities not due at a single maturity date, Amortized Cost	0
Amortized Cost	1,780,519	1,175,185
Estimated Fair Value
Securities not due at a single maturity date, Estimated Fair Value	1,628,186
Securities not due at a single maturity date, Estimated Fair Value	0
Total, Estimated Fair Value	1,628,186	1,160,719
Commercial mortgage-backed securities
Amortized Cost
Securities not due at a single maturity date, Amortized Cost	363,117
Securities not due at a single maturity date, Amortized Cost	0
Amortized Cost	363,117	372,702
Estimated Fair Value
Securities not due at a single maturity date, Estimated Fair Value	350,064
Securities not due at a single maturity date, Estimated Fair Value	0
Total, Estimated Fair Value	350,064	377,255
Other
Amortized Cost
Securities not due at a single maturity date, Amortized Cost	5,607
Securities not due at a single maturity date, Amortized Cost	0
Amortized Cost	444,184	151,449
Estimated Fair Value
Securities not due at a single maturity date, Estimated Fair Value	5,536
Securities not due at a single maturity date, Estimated Fair Value	0
Total, Estimated Fair Value	$ 427,271	$ 151,876

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Investment Securities - Unrealized Losses and Estimated Fair Value of Investment Securities Available for Sale (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Available-for-sale:
Fair Value of Available-for-Sale Securities, Less Than 12 Months	$ 2,703,198	$ 1,288,118
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(230,023)	(20,451)
Fair Value of Available-for-Sale Securities, 12 Months or More	405,812	233,082
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(63,222)	(6,441)
Fair Value of Available-for-Sale Securities, Total	3,109,010	1,521,200
Unrealized Losses of Available-for-Sale Securities, Total	(293,245)	(26,892)
Held-to-maturity:
Fair Value of Held-to-Maturity Securities, Less Than 12 Months	1,274,579
Unrealized Losses of Held-to-Maturity Securities, Less Than 12 Months	(93,527)
Fair Value of Held-to-Maturity Securities, 12 Months or More	0
Unrealized Losses of Held-to-Maturity Securities, 12 Months or More	0
Fair Value of Held-to-Matuirty Securities, Total	1,274,579
Unrealized Losses of Held-to-Maturity Securities	(93,527)
U.S. government-sponsored enterprises
Available-for-sale:
Fair Value of Available-for-Sale Securities, Less Than 12 Months	115,827	120,730
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(10,132)	(1,356)
Fair Value of Available-for-Sale Securities, 12 Months or More	67,691	78,124
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(6,526)	(1,869)
Fair Value of Available-for-Sale Securities, Total	183,518	198,854
Unrealized Losses of Available-for-Sale Securities, Total	(16,658)	(3,225)
Held-to-maturity:
Unrealized Losses of Held-to-Maturity Securities	(1,700)
Residential mortgage-backed securities
Available-for-sale:
Fair Value of Available-for-Sale Securities, Less Than 12 Months	1,205,092	854,807
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(105,830)	(15,246)
Fair Value of Available-for-Sale Securities, 12 Months or More	253,686	104,897
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(47,160)	(3,305)
Fair Value of Available-for-Sale Securities, Total	1,458,778	959,704
Unrealized Losses of Available-for-Sale Securities, Total	(152,990)	(18,551)
Commercial mortgage-backed securities
Available-for-sale:
Fair Value of Available-for-Sale Securities, Less Than 12 Months	299,151	100,702
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(9,507)	(1,251)
Fair Value of Available-for-Sale Securities, 12 Months or More	44,291	28,711
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(3,560)	(717)
Fair Value of Available-for-Sale Securities, Total	343,442	129,413
Unrealized Losses of Available-for-Sale Securities, Total	(13,067)	(1,968)
State and political subdivisions
Available-for-sale:
Fair Value of Available-for-Sale Securities, Less Than 12 Months	789,862	136,135
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(89,276)	(1,282)
Fair Value of Available-for-Sale Securities, 12 Months or More	22,922	18,647
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(4,210)	(512)
Fair Value of Available-for-Sale Securities, Total	812,784	154,782
Unrealized Losses of Available-for-Sale Securities, Total	(93,486)	(1,794)
Held-to-maturity:
Fair Value of Held-to-Maturity Securities, Less Than 12 Months	998,550
Unrealized Losses of Held-to-Maturity Securities, Less Than 12 Months	(91,868)
Fair Value of Held-to-Maturity Securities, 12 Months or More	0
Unrealized Losses of Held-to-Maturity Securities, 12 Months or More	0
Fair Value of Held-to-Matuirty Securities, Total	998,550
Unrealized Losses of Held-to-Maturity Securities	(91,868)
Other securities
Available-for-sale:
Fair Value of Available-for-Sale Securities, Less Than 12 Months	293,266	75,744
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(15,278)	(1,316)
Fair Value of Available-for-Sale Securities, 12 Months or More	17,222	2,703
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(1,766)	(38)
Fair Value of Available-for-Sale Securities, Total	310,488	78,447
Unrealized Losses of Available-for-Sale Securities, Total	(17,044)	$ (1,354)
U.S. Treasuries
Held-to-maturity:
Fair Value of Held-to-Maturity Securities, Less Than 12 Months	276,029
Unrealized Losses of Held-to-Maturity Securities, Less Than 12 Months	(1,659)
Fair Value of Held-to-Maturity Securities, 12 Months or More	0
Unrealized Losses of Held-to-Maturity Securities, 12 Months or More	0
Fair Value of Held-to-Matuirty Securities, Total	276,029
Unrealized Losses of Held-to-Maturity Securities	$ (1,659)

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Investment Securities - Schedule of Allowance for Credit Losses on Investment Securities (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended			12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2021
Available-for-Sale Investment Securities
Beginning balance			$ 842	$ 842	$ 842	$ 842
Provision for credit loss			0	0	0
Ending balance	$ 842	$ 842	842	842	842	842
Held-to-Maturity Investment Securities
Provision for credit loss - acquired securities	(2,005)	$ 0	(2,005)		0
Ending balance	2,005		2,005
State and political subdivisions
Available-for-Sale Investment Securities
Beginning balance			842
Ending balance	842		842	842		842
Held-to-Maturity Investment Securities
Beginning balance			0		0	0
Provision for credit loss - acquired securities			(2,005)			0
Securities charged-off			0			0
Recoveries			0			0
Ending balance	2,005		2,005	0		0
U.S. Treasuries
Held-to-Maturity Investment Securities
Beginning balance			0		$ 0	0
Provision for credit loss - acquired securities			0			0
Securities charged-off			0			0
Recoveries			0			0
Ending balance	$ 0		$ 0	$ 0		$ 0

XML

Investment Securities - Bond Ratings (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 1,368,786
Aaa/AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	495,600
Aa/AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	837,675
A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	33,677
Baa/BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
Not rated
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,834
State and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,091,098
State and political subdivisions | Aaa/AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	217,912
State and political subdivisions | Aa/AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	837,675
State and political subdivisions | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	33,677
State and political subdivisions | Baa/BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
State and political subdivisions | Not rated
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,834
U.S. Treasuries
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	277,688
U.S. Treasuries | Aaa/AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	277,688
U.S. Treasuries | Aa/AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
U.S. Treasuries | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
U.S. Treasuries | Baa/BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
U.S. Treasuries | Not rated
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 0

XML

Investment Securities - Schedule of Income Earned on Available-for Sale Securities (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Investment Income [Line Items]
Income earned on securities, taxable	$ 20,941	$ 7,185	$ 30,021	$ 13,438
Income earned on securities, non-taxable	7,725	4,905	12,432	9,976
Total	28,666	12,090	42,453	23,414
Available-for-sale
Investment Income [Line Items]
Income earned on securities, taxable	14,493	7,185	23,238	13,438
Income earned on securities, non-taxable	4,751	4,905	9,459	9,976
Held-to-maturity
Investment Income [Line Items]
Income earned on securities, taxable	6,448	0	6,783	0
Income earned on securities, non-taxable	$ 2,974	$ 0	$ 2,973	$ 0

XML

Loans Receivable - Summary of Various Categories of Loans Receivable (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	$ 13,923,873		$ 9,836,089
Allowance for credit losses	(294,267)	$ (234,768)	(236,714)	$ (240,451)	$ (245,473)
Loans receivable, net	13,629,606		9,599,375
Commercial real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	8,017,029		5,870,008
Commercial real estate loans | Non-farm/non-residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	5,092,539		3,889,284
Commercial real estate loans | Construction/land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	2,595,384		1,850,050
Allowance for credit losses	(36,689)	(26,349)	(28,415)	(22,145)	(32,861)
Commercial real estate loans | Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	329,106		130,674
Residential real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	(51,146)	(37,111)	(48,458)	(51,182)	(53,216)
Residential real estate loans | Residential 1-4 family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	1,708,221		1,274,953
Residential real estate loans | Multifamily residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	389,633		280,837
Total real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	10,114,883		7,425,798
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	1,106,343		825,519
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	2,187,771		1,386,747
Allowance for credit losses	(68,309)	$ (52,492)	(53,062)	$ (52,282)	$ (46,530)
Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	324,630		43,920
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	$ 190,246		$ 154,105

XML

Loans Receivable - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Apr. 01, 2022	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss	$ 294,267,000	$ 240,451,000	$ 294,267,000	$ 240,451,000		$ 234,768,000	$ 236,714,000	$ 245,473,000
Happy Bancshares, Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	3,652,706,000		3,652,706,000		$ 3,657,009,000
Deteriorated Credit Quality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss	152,300,000		152,300,000				448,000
Deteriorated Credit Quality | Accounting Standards Update 2016-13 | Cumulative Effect Period of Adoption Adjustment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss	152,300,000		152,300,000				448,000
Deteriorated Credit Quality | Happy Bancshares, Inc. | Accounting Standards Update 2016-13 | Cumulative Effect Period of Adoption Adjustment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss	151,800,000		151,800,000
Deteriorated Credit Quality | LH-Finance | Accounting Standards Update 2016-13 | Cumulative Effect Period of Adoption Adjustment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss	432,000		432,000
Mortgage Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans held for sale	137,800,000		137,800,000				$ 72,700,000
SBA Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans sold during period	$ 0	$ 0	2,800,000	11,100,000
Gain on sale of guaranteed portion of loans			$ 95,000	$ 1,100,000

XML

Allowance for Credit Losses, Credit Quality and Other - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) loan	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($) loan	Apr. 01, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2020 USD ($)
Financing Receivable Allowance For Credit Losses [Line Items]
Provision for credit losses	$ 45,170,000	$ 0	$ 45,170,000	$ 0	$ 0
Non-accrual loans	44,170,000		44,170,000	47,158,000
Loans Past Due Over 90 Days Still Accruing	16,432,000		16,432,000	3,035,000
Nonaccrual loans with specific reserve	4,400,000		4,400,000	9,200,000
Interest income on nonaccrual loans			0		0
Collateral-dependent impaired loans	385,100,000		385,100,000	331,500,000
Interest recognized on impaired loans	4,800,000	3,600,000	9,500,000		7,100,000
Amount of loan assessed for impairment on a quarterly basis			2,000,000
Revolver loans converted to term loans			$ 13,800,000		$ 21,700,000
Number of revolving loans convert to term loans | loan			83		140
Allowance for credit loss	294,267,000	240,451,000	$ 294,267,000	236,714,000	$ 240,451,000		$ 234,768,000	$ 245,473,000
Happy Bancshares, Inc.
Financing Receivable Allowance For Credit Losses [Line Items]
Net loan discounts	4,300,000		4,300,000
Allowance for credit losses	16,816,000		16,816,000			$ 42,224,000
Provision for credit losses - acquired loans			45,200,000
Provision for credit losses			11,400,000
Deteriorated Credit Quality
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for credit loss	152,300,000		152,300,000	448,000
Deteriorated Credit Quality | Cumulative Effect Period of Adoption Adjustment | Accounting Standards Update 2016-13
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for credit loss	152,300,000		152,300,000	448,000
Deteriorated Credit Quality | Happy Bancshares, Inc. | Cumulative Effect Period of Adoption Adjustment | Accounting Standards Update 2016-13
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for credit loss	151,800,000		151,800,000
Deteriorated Credit Quality | LH-Finance | Cumulative Effect Period of Adoption Adjustment | Accounting Standards Update 2016-13
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for credit loss	432,000		$ 432,000
Construction / Land Development and Other Commercial Real Estate Loans | Minimum
Financing Receivable Allowance For Credit Losses [Line Items]
Loans collateralized by first liens on real estate amortized period			15 years
Loans collateralized by first liens on real estate balloon payments due period			1 year
Construction / Land Development and Other Commercial Real Estate Loans | Maximum
Financing Receivable Allowance For Credit Losses [Line Items]
Loans collateralized by first liens on real estate amortized period			30 years
Loans collateralized by first liens on real estate balloon payments due period			5 years
Percentage of loan value of improved property			85.00%
Percentage of loan value of raw land			65.00%
Percentage of loan value of land to be acquired and developed			75.00%
Residential real estate loans
Financing Receivable Allowance For Credit Losses [Line Items]
Provision for credit losses	7,380,000		$ 7,380,000	(3,019,000)	(1,877,000)
Allowance for credit loss	51,146,000	51,182,000	$ 51,146,000	48,458,000	51,182,000		37,111,000	53,216,000
Residential real estate loans | Maximum
Financing Receivable Allowance For Credit Losses [Line Items]
Loan-to-value ratio			90.00%
Commercial and Industrial Loans
Financing Receivable Allowance For Credit Losses [Line Items]
Provision for credit losses	11,303,000		$ 11,303,000	4,523,000	9,660,000
Non-accrual loans	8,698,000		8,698,000	13,875,000
Loans Past Due Over 90 Days Still Accruing	2,342,000		2,342,000	107,000
Allowance for credit loss	$ 68,309,000	$ 52,282,000	$ 68,309,000	$ 53,062,000	$ 52,282,000		$ 52,492,000	$ 46,530,000
Commercial and Industrial Loans | Minimum
Financing Receivable Allowance For Credit Losses [Line Items]
Commercial loans terms			1 year
Inventory financing percentage	50.00%		50.00%
Commercial and Industrial Loans | Minimum | Accounts Receivable Less than 60 Days Past Due
Financing Receivable Allowance For Credit Losses [Line Items]
Accounts receivable financed percentage	50.00%		50.00%
Commercial and Industrial Loans | Maximum
Financing Receivable Allowance For Credit Losses [Line Items]
Commercial loans terms			7 years
Inventory financing percentage	80.00%		80.00%
Commercial and Industrial Loans | Maximum | Accounts Receivable Less than 60 Days Past Due
Financing Receivable Allowance For Credit Losses [Line Items]
Accounts receivable financed percentage	80.00%		80.00%

XML

Allowance for Credit Losses, Credit Quality and Other - Schedule of Allowance for Credit Losses (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Apr. 01, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	$ 234,768	$ 234,768		$ 236,714	$ 240,451	$ 245,473
Loans charged off		(3,265)		(5,575)	(5,591)	(6,070)
Recoveries of loans previously charged off		778		1,142	1,854	1,048
Net loans recovered (charged off)		(2,487)		(4,433)	(3,737)	(5,022)
Provision for credit loss - loans		45,170	$ 0	45,170	0	0
Provision for credit losses		0	(4,752)	0		(4,752)
Ending balance		294,267	240,451	294,267	236,714	240,451
Happy Bancshares, Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for credit loss - acquired loans	16,816	16,816		16,816
Provision for credit loss - loans				11,400
Residential real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	37,111	37,111		48,458	51,182	53,216
Loans charged off		(39)		(289)	(222)	(323)
Recoveries of loans previously charged off		23		49	517	166
Net loans recovered (charged off)		(16)		(240)	295	(157)
Provision for credit loss - loans		7,380		7,380	(3,019)	(1,877)
Provision for credit losses		5,691		(5,432)
Ending balance		51,146	51,182	51,146	48,458	51,182
Residential real estate loans | Happy Bancshares, Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for credit loss - acquired loans		980		980
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	52,492	52,492		53,062	52,282	46,530
Loans charged off		0		(1,416)	(4,032)	(4,210)
Recoveries of loans previously charged off		221		330	289	302
Net loans recovered (charged off)		221		(1,086)	(3,743)	(3,908)
Provision for credit loss - loans		11,303		11,303	4,523	9,660
Provision for credit losses		(1,303)		(566)
Ending balance		68,309	52,282	68,309	53,062	52,282
Commercial and industrial | Happy Bancshares, Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for credit loss - acquired loans		5,596		5,596
Consumer & Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	22,940	22,940		19,561	21,715	24,413
Loans charged off		(3,226)		(3,870)	(1,328)	(900)
Recoveries of loans previously charged off		180		368	312	473
Net loans recovered (charged off)		(3,046)		(3,502)	(1,016)	(427)
Provision for credit loss - loans		571		571	(1,138)	(2,271)
Provision for credit losses		2,456		6,291
Ending balance		22,928	21,715	22,928	19,561	21,715
Consumer & Other | Happy Bancshares, Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for credit loss - acquired loans		7		7
Construction/land development | Commercial real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	26,349	26,349		28,415	22,145	32,861
Loans charged off		0		0	0	0
Recoveries of loans previously charged off		302		317	19	39
Net loans recovered (charged off)		302		317	19	39
Provision for credit loss - loans		7,205		7,205	6,251	(10,755)
Provision for credit losses		1,883		(198)
Ending balance		36,689	22,145	36,689	28,415	22,145
Construction/land development | Commercial real estate loans | Happy Bancshares, Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for credit loss - acquired loans		950		950
Other Commercial Real Estate | Commercial real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	$ 95,876	95,876		87,218	93,127	88,453
Loans charged off		0		0	(9)	(637)
Recoveries of loans previously charged off		52		78	717	68
Net loans recovered (charged off)		52		78	708	(569)
Provision for credit loss - loans		18,711		18,711	(6,617)	5,243
Provision for credit losses		(8,727)		(95)
Ending balance		115,195	$ 93,127	115,195	$ 87,218	$ 93,127
Other Commercial Real Estate | Commercial real estate loans | Happy Bancshares, Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for credit loss - acquired loans		$ 9,283		$ 9,283

XML

Allowance for Credit Losses, Credit Quality and Other - Amortized Cost Basis of Loans on Nonaccrual Status and Loans Past Due Over 90 Days Still Accruing (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	$ 44,170	$ 47,158
Nonaccrual with Reserve	4,405	9,230
Loans Past Due Over 90 Days Still Accruing	16,432	3,035
Commercial real estate loans | Non-farm/non-residential
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	14,247	11,923
Nonaccrual with Reserve	2,137	2,212
Loans Past Due Over 90 Days Still Accruing	10,712	2,225
Commercial real estate loans | Construction/land development
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	1,050	1,445
Nonaccrual with Reserve	0	0
Loans Past Due Over 90 Days Still Accruing	246	0
Commercial real estate loans | Agricultural
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	194	897
Nonaccrual with Reserve	0	0
Loans Past Due Over 90 Days Still Accruing	711	0
Residential real estate loans | Residential 1-4 family
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	17,210	16,198
Nonaccrual with Reserve	0	3,000
Loans Past Due Over 90 Days Still Accruing	2,378	701
Residential real estate loans | Multifamily residential
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	156	156
Nonaccrual with Reserve	0	0
Loans Past Due Over 90 Days Still Accruing	0	0
Total real estate
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	32,857	30,619
Nonaccrual with Reserve	2,137	5,212
Loans Past Due Over 90 Days Still Accruing	14,047	2,926
Consumer
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	1,321	1,648
Nonaccrual with Reserve	0	0
Loans Past Due Over 90 Days Still Accruing	43	2
Commercial and industrial
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	8,698	13,875
Nonaccrual with Reserve	2,268	4,018
Loans Past Due Over 90 Days Still Accruing	2,342	107
Agricultural & other
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	1,294	1,016
Nonaccrual with Reserve	0	0
Loans Past Due Over 90 Days Still Accruing	$ 0	$ 0

XML

Allowance for Credit Losses, Credit Quality and Other - Amortized Cost Basis of Collateral-dependent Impaired Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	$ 385,100	$ 331,500
Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	332,661	289,591
Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	21,822	21,075
Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	30,617	20,872
Commercial real estate loans | Non-farm/non-residential | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	330,460	283,919
Commercial real estate loans | Non-farm/non-residential | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial real estate loans | Non-farm/non-residential | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial real estate loans | Construction/land development | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	1,296	4,775
Commercial real estate loans | Construction/land development | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial real estate loans | Construction/land development | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial real estate loans | Agricultural | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	905	897
Commercial real estate loans | Agricultural | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial real estate loans | Agricultural | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Residential real estate loans | Residential 1-4 family | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Residential real estate loans | Residential 1-4 family | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	20,714	19,775
Residential real estate loans | Residential 1-4 family | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Residential real estate loans | Multifamily residential | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Residential real estate loans | Multifamily residential | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	1,108	1,300
Residential real estate loans | Multifamily residential | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Total real estate | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	332,661	289,591
Total real estate | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	21,822	21,075
Total real estate | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Consumer | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Consumer | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Consumer | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	1,376	1,663
Commercial and industrial | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial and industrial | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial and industrial | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	27,326	18,193
Agricultural & other | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Agricultural & other | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Agricultural & other | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	$ 1,915	$ 1,016

XML

Allowance for Credit Losses, Credit Quality and Other - Summary of Aging Analysis for Loans Receivable (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	$ 13,923,873	$ 9,836,089
Accruing Loans Past Due 90 Days or More	16,432	3,035
Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	35,376	4,764
Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	10,091	5,153
Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	60,602	50,193
Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	106,069	60,110
Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	13,817,804	9,775,979
Commercial real estate loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	8,017,029	5,870,008
Commercial real estate loans | Non-farm/non-residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	5,092,539	3,889,284
Accruing Loans Past Due 90 Days or More	10,712	2,225
Commercial real estate loans | Non-farm/non-residential | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	14,579	1,434
Commercial real estate loans | Non-farm/non-residential | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,871	576
Commercial real estate loans | Non-farm/non-residential | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	24,959	14,148
Commercial real estate loans | Non-farm/non-residential | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	41,409	16,158
Commercial real estate loans | Non-farm/non-residential | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	5,051,130	3,873,126
Commercial real estate loans | Construction/land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,595,384	1,850,050
Accruing Loans Past Due 90 Days or More	246	0
Commercial real estate loans | Construction/land development | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	3,553	92
Commercial real estate loans | Construction/land development | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,145	22
Commercial real estate loans | Construction/land development | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,296	1,445
Commercial real estate loans | Construction/land development | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	6,994	1,559
Commercial real estate loans | Construction/land development | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,588,390	1,848,491
Commercial real estate loans | Agricultural
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	329,106	130,674
Accruing Loans Past Due 90 Days or More	711	0
Commercial real estate loans | Agricultural | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	4,106	0
Commercial real estate loans | Agricultural | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	337	472
Commercial real estate loans | Agricultural | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	905	897
Commercial real estate loans | Agricultural | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	5,348	1,369
Commercial real estate loans | Agricultural | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	323,758	129,305
Residential real estate loans | Residential 1-4 family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,708,221	1,274,953
Accruing Loans Past Due 90 Days or More	2,378	701
Residential real estate loans | Residential 1-4 family | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	3,729	1,633
Residential real estate loans | Residential 1-4 family | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	4,404	3,560
Residential real estate loans | Residential 1-4 family | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	19,588	16,899
Residential real estate loans | Residential 1-4 family | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	27,721	22,092
Residential real estate loans | Residential 1-4 family | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,680,500	1,252,861
Residential real estate loans | Multifamily residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	389,633	280,837
Accruing Loans Past Due 90 Days or More	0	0
Residential real estate loans | Multifamily residential | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	54	0
Residential real estate loans | Multifamily residential | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	0	0
Residential real estate loans | Multifamily residential | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	156	156
Residential real estate loans | Multifamily residential | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	210	156
Residential real estate loans | Multifamily residential | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	389,423	280,681
Total real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	10,114,883	7,425,798
Accruing Loans Past Due 90 Days or More	14,047	2,926
Total real estate | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	26,021	3,159
Total real estate | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	8,757	4,630
Total real estate | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	46,904	33,545
Total real estate | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	81,682	41,334
Total real estate | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	10,033,201	7,384,464
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,106,343	825,519
Accruing Loans Past Due 90 Days or More	43	2
Consumer | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	701	60
Consumer | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	122	205
Consumer | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,364	1,650
Consumer | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,187	1,915
Consumer | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,104,156	823,604
Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,187,771	1,386,747
Accruing Loans Past Due 90 Days or More	2,342	107
Commercial and industrial | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	7,996	958
Commercial and industrial | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,140	316
Commercial and industrial | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	11,040	13,982
Commercial and industrial | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	20,176	15,256
Commercial and industrial | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,167,595	1,371,491
Agricultural & other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	514,876	198,025
Accruing Loans Past Due 90 Days or More	0	0
Agricultural & other | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	658	587
Agricultural & other | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	72	2
Agricultural & other | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,294	1,016
Agricultural & other | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,024	1,605
Agricultural & other | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	$ 512,852	$ 196,420

XML

Allowance for Credit Losses, Credit Quality and Other - Summary of Most Recent Analysis Performed, Risk Category of Loans by Class of Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable Allowance For Credit Losses [Line Items]
2022	$ 1,694,621	$ 1,953,847
2021	2,913,908	1,302,389
2020	1,711,672	1,541,112
2019	1,688,306	1,193,396
2018	1,315,430	681,871
Prior	2,872,071	2,276,794
Revolving Loans Amortized Cost Basis	1,727,865	886,680
Total	13,923,873	9,836,089
Commercial real estate loans
Financing Receivable Allowance For Credit Losses [Line Items]
2022	951,855	949,558
2021	1,753,474	755,921
2020	909,263	975,677
2019	1,126,626	733,231
2018	848,664	412,922
Prior	1,921,962	1,591,810
Revolving Loans Amortized Cost Basis	505,185	450,889
Total	8,017,029	5,870,008
Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	363,921	395,824
2021	823,509	325,700
2020	497,338	408,941
2019	521,489	668,503
2018	797,545	347,725
Prior	1,734,633	1,457,699
Revolving Loans Amortized Cost Basis	354,104	284,892
Total	5,092,539	3,889,284
Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
2022	538,732	527,949
2021	854,728	401,116
2020	353,332	558,603
2019	572,456	57,194
2018	38,089	59,439
Prior	97,057	88,843
Revolving Loans Amortized Cost Basis	140,990	156,906
Total	2,595,384	1,850,050
Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
2022	49,202	25,785
2021	75,237	29,105
2020	58,593	8,133
2019	32,681	7,534
2018	13,030	5,758
Prior	90,272	45,268
Revolving Loans Amortized Cost Basis	10,091	9,091
Total	329,106	130,674
Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
2022	256,998	220,991
2021	298,532	153,172
2020	252,124	182,197
2019	141,114	115,018
2018	127,126	106,193
Prior	452,406	368,042
Revolving Loans Amortized Cost Basis	179,921	129,340
Total	1,708,221	1,274,953
Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	11,617	15,653
2021	47,718	49,505
2020	139,011	64,552
2019	38,917	28,378
2018	31,372	21,406
Prior	81,097	64,037
Revolving Loans Amortized Cost Basis	39,901	37,306
Total	389,633	280,837
Total real estate
Financing Receivable Allowance For Credit Losses [Line Items]
2022	1,220,470	1,186,202
2021	2,099,724	958,598
2020	1,300,398	1,222,426
2019	1,306,657	876,627
2018	1,007,162	540,521
Prior	2,455,465	2,023,889
Revolving Loans Amortized Cost Basis	725,007	617,535
Total	10,114,883	7,425,798
Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
2022	153,058	230,043
2021	316,405	176,383
2020	189,322	136,413
2019	149,577	113,277
2018	133,165	68,376
Prior	157,109	97,950
Revolving Loans Amortized Cost Basis	7,707	3,077
Total	1,106,343	825,519
Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
2022	204,749	476,429
2021	436,559	123,160
2020	185,627	173,431
2019	208,595	194,797
2018	162,415	69,706
Prior	196,435	104,283
Revolving Loans Amortized Cost Basis	793,391	244,941
Total	2,187,771	1,386,747
Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
2022	116,344	61,173
2021	61,220	44,248
2020	36,325	8,842
2019	23,477	8,695
2018	12,688	3,268
Prior	63,062	50,672
Revolving Loans Amortized Cost Basis	201,760	21,127
Total	514,876	198,025
Risk rating 1 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	245	0
2018	0	0
Prior	161	0
Revolving Loans Amortized Cost Basis	0	0
Total	406	0
Risk rating 1 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	12	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	12	0
Risk rating 1 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 1 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	118	76
Revolving Loans Amortized Cost Basis	37	89
Total	155	165
Risk rating 1 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 1 | Total real estate
Financing Receivable Allowance For Credit Losses [Line Items]
2022		1,186,202
2021		958,598
2020		1,222,426
2019		876,627
2018		540,521
Prior		2,023,889
Revolving Loans Amortized Cost Basis		617,535
Total		7,425,798
Risk rating 1 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
2022	3,194	4,441
2021	5,020	1,799
2020	1,607	1,237
2019	955	920
2018	703	226
Prior	1,370	1,383
Revolving Loans Amortized Cost Basis	1,476	1,893
Total	14,325	11,899
Risk rating 1 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
2022	920	99,579
2021	32,090	12,752
2020	6,644	350
2019	304	118
2018	29	102
Prior	21,677	21,436
Revolving Loans Amortized Cost Basis	7,979	9,851
Total	69,643	144,188
Risk rating 1 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
2022	136	5,042
2021	727	0
2020	114	40
2019	0	0
2018	0	0
Prior	5	110
Revolving Loans Amortized Cost Basis	746	552
Total	1,728	5,744
Risk rating 2 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	122	0
2018	0	0
Prior	4,188	0
Revolving Loans Amortized Cost Basis	0	0
Total	4,310	0
Risk rating 2 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
2022	1,262	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	221	231
Revolving Loans Amortized Cost Basis	0	0
Total	1,483	231
Risk rating 2 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	2,111	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	2,111	0
Risk rating 2 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	115	29
Revolving Loans Amortized Cost Basis	0	0
Total	115	29
Risk rating 2 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 2 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	1	45
2019	224	639
2018	631	0
Prior	0	8
Revolving Loans Amortized Cost Basis	0	0
Total	856	692
Risk rating 2 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
2022	170	175
2021	307	16
2020	81	0
2019	197	0
2018	0	66
Prior	254	276
Revolving Loans Amortized Cost Basis	546	168
Total	1,555	701
Risk rating 2 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
2022	73	0
2021	123	0
2020	0	3,467
2019	3,467	0
2018	34	0
Prior	968	909
Revolving Loans Amortized Cost Basis	1,795	983
Total	6,460	5,359
Risk rating 3 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	168,978	284,127
2021	512,718	281,982
2020	295,392	266,990
2019	299,302	341,642
2018	354,655	195,301
Prior	970,977	891,035
Revolving Loans Amortized Cost Basis	219,357	194,640
Total	2,821,379	2,455,717
Risk rating 3 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
2022	202,232	301,719
2021	310,042	183,715
2020	119,690	108,491
2019	103,278	23,574
2018	25,526	13,760
Prior	40,011	41,860
Revolving Loans Amortized Cost Basis	122,957	149,433
Total	923,736	822,552
Risk rating 3 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
2022	29,103	21,480
2021	46,291	27,931
2020	36,778	7,768
2019	17,266	6,564
2018	11,114	5,103
Prior	42,619	21,689
Revolving Loans Amortized Cost Basis	5,317	7,026
Total	188,488	97,561
Risk rating 3 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
2022	228,300	210,970
2021	254,988	147,523
2020	183,584	119,861
2019	122,093	94,848
2018	105,793	82,474
Prior	361,623	296,687
Revolving Loans Amortized Cost Basis	105,987	85,836
Total	1,362,368	1,038,199
Risk rating 3 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	3,583	11,898
2021	18,192	5,211
2020	17,855	34,492
2019	14,667	17,375
2018	16,076	9,430
Prior	55,525	43,804
Revolving Loans Amortized Cost Basis	39,631	3,583
Total	165,529	125,793
Risk rating 3 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
2022	146,607	221,986
2021	310,018	173,511
2020	186,953	132,148
2019	146,049	109,810
2018	131,267	67,992
Prior	151,552	92,076
Revolving Loans Amortized Cost Basis	6,150	1,098
Total	1,078,596	798,621
Risk rating 3 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
2022	176,716	125,071
2021	166,123	59,056
2020	89,398	77,130
2019	79,402	67,944
2018	48,010	34,733
Prior	95,750	42,905
Revolving Loans Amortized Cost Basis	282,994	145,247
Total	938,393	552,086
Risk rating 3 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
2022	107,154	54,534
2021	41,975	44,030
2020	32,179	5,158
2019	6,170	7,092
2018	10,553	2,009
Prior	48,565	46,570
Revolving Loans Amortized Cost Basis	123,477	8,750
Total	370,073	168,143
Risk rating 4 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	185,605	111,697
2021	310,791	32,788
2020	184,980	115,989
2019	177,523	301,520
2018	400,884	90,747
Prior	464,893	345,254
Revolving Loans Amortized Cost Basis	134,386	90,028
Total	1,859,062	1,088,023
Risk rating 4 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
2022	331,263	226,230
2021	544,674	217,267
2020	212,516	448,899
2019	468,082	33,617
2018	12,562	45,679
Prior	49,210	38,122
Revolving Loans Amortized Cost Basis	18,033	7,297
Total	1,636,340	1,017,111
Risk rating 4 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
2022	16,094	4,305
2021	26,835	964
2020	20,058	365
2019	15,415	970
2018	1,916	655
Prior	46,253	22,143
Revolving Loans Amortized Cost Basis	4,774	2,065
Total	131,345	31,467
Risk rating 4 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
2022	25,964	8,885
2021	41,184	3,397
2020	66,127	56,839
2019	12,130	16,887
2018	18,418	21,874
Prior	71,178	53,578
Revolving Loans Amortized Cost Basis	70,261	36,642
Total	305,262	198,102
Risk rating 4 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	8,034	3,755
2021	29,526	44,294
2020	121,156	30,060
2019	23,503	3,412
2018	12,113	2,981
Prior	15,609	18,805
Revolving Loans Amortized Cost Basis	270	33,723
Total	210,211	137,030
Risk rating 4 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
2022	3,207	3,547
2021	1,284	923
2020	621	2,944
2019	2,177	1,776
2018	552	158
Prior	2,336	2,641
Revolving Loans Amortized Cost Basis	74	79
Total	10,251	12,068
Risk rating 4 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
2022	26,642	244,927
2021	231,306	35,350
2020	49,175	89,558
2019	123,869	91,840
2018	80,950	23,616
Prior	57,810	34,566
Revolving Loans Amortized Cost Basis	494,944	88,750
Total	1,064,696	608,607
Risk rating 4 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
2022	8,981	1,544
2021	18,330	218
2020	3,635	154
2019	13,824	1,590
2018	2,101	1,226
Prior	11,582	1,224
Revolving Loans Amortized Cost Basis	75,742	10,842
Total	134,195	16,798
Risk rating 5 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	8,462	0
2021	0	10,930
2020	4,181	2,239
2019	14,622	23,117
2018	36,376	49,926
Prior	232,972	189,038
Revolving Loans Amortized Cost Basis	95	0
Total	296,708	275,250
Risk rating 5 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
2022	3,975	0
2021	0	0
2020	21,126	388
2019	353	0
2018	0	0
Prior	1,167	1,174
Revolving Loans Amortized Cost Basis	0	176
Total	26,621	1,738
Risk rating 5 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
2022	4,005	0
2021	0	166
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	4,005	166
Risk rating 5 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
2022	2,734	0
2021	180	0
2020	0	3,065
2019	3,066	1,220
2018	501	582
Prior	1,557	1,366
Revolving Loans Amortized Cost Basis	186	193
Total	8,224	6,426
Risk rating 5 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	7,591
2018	3,183	8,105
Prior	7,984	0
Revolving Loans Amortized Cost Basis	0	0
Total	11,167	15,696
Risk rating 5 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
2022	33	0
2021	12	116
2020	110	0
2019	0	15
2018	12	0
Prior	559	131
Revolving Loans Amortized Cost Basis	0	0
Total	726	262
Risk rating 5 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
2022	283	6,185
2021	6,156	609
2020	28,092	480
2019	361	8,258
2018	7,239	5,712
Prior	9,480	2,851
Revolving Loans Amortized Cost Basis	806	582
Total	52,417	24,677
Risk rating 5 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	8	0
2020	203	0
2019	0	0
2018	0	0
Prior	1,311	1,297
Revolving Loans Amortized Cost Basis	0	0
Total	1,522	1,297
Risk rating 6 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	876	0
2021	0	0
2020	12,785	23,723
2019	29,675	2,224
2018	5,630	11,751
Prior	61,442	32,372
Revolving Loans Amortized Cost Basis	266	224
Total	110,674	70,294
Risk rating 6 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	134
2020	0	825
2019	743	3
2018	1	0
Prior	6,448	7,456
Revolving Loans Amortized Cost Basis	0	0
Total	7,192	8,418
Risk rating 6 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	44
2020	1,757	0
2019	0	0
2018	0	0
Prior	1,400	1,436
Revolving Loans Amortized Cost Basis	0	0
Total	3,157	1,480
Risk rating 6 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	1,136
2021	2,180	2,252
2020	2,413	2,432
2019	3,825	2,063
2018	2,414	1,263
Prior	17,814	16,305
Revolving Loans Amortized Cost Basis	3,450	6,580
Total	32,096	32,031
Risk rating 6 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	747	0
2018	0	890
Prior	1,823	1,428
Revolving Loans Amortized Cost Basis	0	0
Total	2,570	2,318
Risk rating 6 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
2022	17	69
2021	71	34
2020	30	39
2019	172	117
2018	0	0
Prior	1,215	1,711
Revolving Loans Amortized Cost Basis	7	7
Total	1,512	1,977
Risk rating 6 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
2022	18	492
2021	577	15,377
2020	12,237	5,913
2019	4,462	24,941
2018	24,553	5,477
Prior	11,165	2,233
Revolving Loans Amortized Cost Basis	6,122	342
Total	59,134	54,775
Risk rating 6 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	53
2021	57	0
2020	194	23
2019	16	13
2018	0	33
Prior	631	562
Revolving Loans Amortized Cost Basis	0	0
Total	898	684
Risk rating 7 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 7 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 7 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 7 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 7 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	156	0
Revolving Loans Amortized Cost Basis	0	0
Total	156	0
Risk rating 7 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 7 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	1,696
2018	1,634	0
Prior	299	0
Revolving Loans Amortized Cost Basis	0	0
Total	1,933	1,696
Risk rating 7 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 8 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 8 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 8 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 8 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	1	1
Revolving Loans Amortized Cost Basis	0	0
Total	1	1
Risk rating 8 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 8 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	77	0
Revolving Loans Amortized Cost Basis	0	0
Total	77	0
Risk rating 8 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	16
Revolving Loans Amortized Cost Basis	0	1
Total	0	17
Risk rating 8 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	$ 0	$ 0

XML

Allowance for Credit Losses, Credit Quality and Other - Summary of Amortized Cost of Performing and Nonperforming Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable Allowance For Credit Losses [Line Items]
2022	$ 1,694,621	$ 1,953,847
2021	2,913,908	1,302,389
2020	1,711,672	1,541,112
2019	1,688,306	1,193,396
2018	1,315,430	681,871
Prior	2,872,071	2,276,794
Revolving Loans Amortized Cost Basis	1,727,865	886,680
Total	13,923,873	9,836,089
Commercial real estate loans
Financing Receivable Allowance For Credit Losses [Line Items]
2022	951,855	949,558
2021	1,753,474	755,921
2020	909,263	975,677
2019	1,126,626	733,231
2018	848,664	412,922
Prior	1,921,962	1,591,810
Revolving Loans Amortized Cost Basis	505,185	450,889
Total	8,017,029	5,870,008
Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	363,921	395,824
2021	823,509	325,700
2020	497,338	408,941
2019	521,489	668,503
2018	797,545	347,725
Prior	1,734,633	1,457,699
Revolving Loans Amortized Cost Basis	354,104	284,892
Total	5,092,539	3,889,284
Commercial real estate loans | Non-farm/non-residential | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	363,921	395,824
2021	823,509	315,447
2020	483,438	394,061
2019	476,985	648,351
2018	774,705	298,086
Prior	1,485,540	1,268,731
Revolving Loans Amortized Cost Basis	353,981	284,865
Total	4,762,079	3,605,365
Commercial real estate loans | Non-farm/non-residential | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	10,253
2020	13,900	14,880
2019	44,504	20,152
2018	22,840	49,639
Prior	249,093	188,968
Revolving Loans Amortized Cost Basis	123	27
Total	330,460	283,919
Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
2022	538,732	527,949
2021	854,728	401,116
2020	353,332	558,603
2019	572,456	57,194
2018	38,089	59,439
Prior	97,057	88,843
Revolving Loans Amortized Cost Basis	140,990	156,906
Total	2,595,384	1,850,050
Commercial real estate loans | Construction/land development | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	538,732	527,949
2021	854,677	400,982
2020	353,332	557,778
2019	571,712	57,024
2018	37,933	59,439
Prior	96,712	85,197
Revolving Loans Amortized Cost Basis	140,990	156,906
Total	2,594,088	1,845,275
Commercial real estate loans | Construction/land development | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	51	134
2020	0	825
2019	744	170
2018	156	0
Prior	345	3,646
Revolving Loans Amortized Cost Basis	0	0
Total	1,296	4,775
Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
2022	49,202	25,785
2021	75,237	29,105
2020	58,593	8,133
2019	32,681	7,534
2018	13,030	5,758
Prior	90,272	45,268
Revolving Loans Amortized Cost Basis	10,091	9,091
Total	329,106	130,674
Commercial real estate loans | Agricultural | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	49,202	25,785
2021	75,237	28,939
2020	58,593	8,133
2019	32,681	7,534
2018	13,030	5,758
Prior	89,367	44,537
Revolving Loans Amortized Cost Basis	10,091	9,091
Total	328,201	129,777
Commercial real estate loans | Agricultural | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	166
2020	0	0
2019	0	0
2018	0	0
Prior	905	731
Revolving Loans Amortized Cost Basis	0	0
Total	905	897
Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
2022	256,998	220,991
2021	298,532	153,172
2020	252,124	182,197
2019	141,114	115,018
2018	127,126	106,193
Prior	452,406	368,042
Revolving Loans Amortized Cost Basis	179,921	129,340
Total	1,708,221	1,274,953
Residential real estate loans | Residential 1-4 family | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	256,998	220,380
2021	297,261	151,459
2020	249,716	180,113
2019	137,945	113,845
2018	125,699	105,129
Prior	442,616	360,700
Revolving Loans Amortized Cost Basis	177,272	123,552
Total	1,687,507	1,255,178
Residential real estate loans | Residential 1-4 family | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	611
2021	1,271	1,713
2020	2,408	2,084
2019	3,169	1,173
2018	1,427	1,064
Prior	9,790	7,342
Revolving Loans Amortized Cost Basis	2,649	5,788
Total	20,714	19,775
Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
2022	11,617	15,653
2021	47,718	49,505
2020	139,011	64,552
2019	38,917	28,378
2018	31,372	21,406
Prior	81,097	64,037
Revolving Loans Amortized Cost Basis	39,901	37,306
Total	389,633	280,837
Residential real estate loans | Multifamily residential | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	11,617	15,653
2021	47,718	49,505
2020	139,011	64,552
2019	38,917	28,378
2018	31,372	21,406
Prior	79,989	62,737
Revolving Loans Amortized Cost Basis	39,901	37,306
Total	388,525	279,537
Residential real estate loans | Multifamily residential | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	1,108	1,300
Revolving Loans Amortized Cost Basis	0	0
Total	1,108	1,300
Total real estate
Financing Receivable Allowance For Credit Losses [Line Items]
2022	1,220,470	1,186,202
2021	2,099,724	958,598
2020	1,300,398	1,222,426
2019	1,306,657	876,627
2018	1,007,162	540,521
Prior	2,455,465	2,023,889
Revolving Loans Amortized Cost Basis	725,007	617,535
Total	10,114,883	7,425,798
Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
2022	153,058	230,043
2021	316,405	176,383
2020	189,322	136,413
2019	149,577	113,277
2018	133,165	68,376
Prior	157,109	97,950
Revolving Loans Amortized Cost Basis	7,707	3,077
Total	1,106,343	825,519
Consumer | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	153,058	229,986
2021	316,350	176,355
2020	189,302	136,403
2019	149,430	113,160
2018	133,165	68,376
Prior	155,962	96,506
Revolving Loans Amortized Cost Basis	7,700	3,070
Total	1,104,967	823,856
Consumer | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	57
2021	55	28
2020	20	10
2019	147	117
2018	0	0
Prior	1,147	1,444
Revolving Loans Amortized Cost Basis	7	7
Total	1,376	1,663
Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
2022	204,749	476,429
2021	436,559	123,160
2020	185,627	173,431
2019	208,595	194,797
2018	162,415	69,706
Prior	196,435	104,283
Revolving Loans Amortized Cost Basis	793,391	244,941
Total	2,187,771	1,386,747
Commercial and industrial | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	204,749	476,424
2021	435,803	122,999
2020	182,667	168,984
2019	204,643	185,569
2018	153,210	66,928
Prior	192,144	103,391
Revolving Loans Amortized Cost Basis	787,229	244,259
Total	2,160,445	1,368,554
Commercial and industrial | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	5
2021	756	161
2020	2,960	4,447
2019	3,952	9,228
2018	9,205	2,778
Prior	4,291	892
Revolving Loans Amortized Cost Basis	6,162	682
Total	27,326	18,193
Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
2022	116,344	61,173
2021	61,220	44,248
2020	36,325	8,842
2019	23,477	8,695
2018	12,688	3,268
Prior	63,062	50,672
Revolving Loans Amortized Cost Basis	201,760	21,127
Total	514,876	198,025
Agricultural & other | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	116,344	61,173
2021	61,220	44,248
2020	36,122	8,819
2019	23,461	8,682
2018	12,688	3,235
Prior	61,852	49,725
Revolving Loans Amortized Cost Basis	201,274	21,127
Total	512,961	197,009
Agricultural & other | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
2022	0	0
2021	0	0
2020	203	23
2019	16	13
2018	0	33
Prior	1,210	947
Revolving Loans Amortized Cost Basis	486	0
Total	$ 1,915	$ 1,016

XML

Allowance for Credit Losses, Credit Quality and Other - Presentation of Troubled Debt Restructurings ("TDRs") by Class (Detail) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) contract	Dec. 31, 2021 USD ($) contract
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	41	44
Pre- Modification Outstanding Balance	$ 11,719	$ 12,474
Post- Modification Outstanding Balance	6,598	7,526
Rate Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	5,379	6,226
Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	761	806
Rate & Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 458	$ 494
Consumer
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	4	4
Pre- Modification Outstanding Balance	$ 23	$ 22
Post- Modification Outstanding Balance	15	16
Consumer | Rate Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	12	13
Consumer | Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Consumer | Rate & Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 3	$ 3
Commercial real estate loans | Non-farm/non-residential
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	11	12
Pre- Modification Outstanding Balance	$ 6,085	$ 6,119
Post- Modification Outstanding Balance	4,094	4,289
Commercial real estate loans | Non-farm/non-residential | Rate Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	3,404	3,581
Commercial real estate loans | Non-farm/non-residential | Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	608	623
Commercial real estate loans | Non-farm/non-residential | Rate & Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 82	$ 85
Commercial real estate loans | Construction/land development
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	1	2
Pre- Modification Outstanding Balance	$ 216	$ 240
Post- Modification Outstanding Balance	199	211
Commercial real estate loans | Construction/land development | Rate Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	199	210
Commercial real estate loans | Construction/land development | Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	1
Commercial real estate loans | Construction/land development | Rate & Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 0	$ 0
Commercial real estate loans | Agricultural
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	0	1
Pre- Modification Outstanding Balance	$ 0	$ 282
Post- Modification Outstanding Balance	0	262
Commercial real estate loans | Agricultural | Rate Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	262
Commercial real estate loans | Agricultural | Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Commercial real estate loans | Agricultural | Rate & Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 0	$ 0
Residential real estate loans | Residential 1-4 family
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	14	15
Pre- Modification Outstanding Balance	$ 2,166	$ 2,328
Post- Modification Outstanding Balance	1,071	1,293
Residential real estate loans | Residential 1-4 family | Rate Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	660	844
Residential real estate loans | Residential 1-4 family | Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	112	117
Residential real estate loans | Residential 1-4 family | Rate & Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 299	$ 332
Residential real estate loans | Multifamily residential
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	1	1
Pre- Modification Outstanding Balance	$ 1,130	$ 1,130
Post- Modification Outstanding Balance	952	1,144
Residential real estate loans | Multifamily residential | Rate Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	952	1,144
Residential real estate loans | Multifamily residential | Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Residential real estate loans | Multifamily residential | Rate & Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 0	$ 0
Total real estate
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	27	31
Pre- Modification Outstanding Balance	$ 9,597	$ 10,099
Post- Modification Outstanding Balance	6,316	7,199
Total real estate | Rate Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	5,215	6,041
Total real estate | Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	720	741
Total real estate | Rate & Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 381	$ 417
Commercial and industrial
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	10	9
Pre- Modification Outstanding Balance	$ 2,099	$ 2,353
Post- Modification Outstanding Balance	267	311
Commercial and industrial | Rate Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	152	172
Commercial and industrial | Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	41	65
Commercial and industrial | Rate & Term Modification
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 74	$ 74

XML

Allowance for Credit Losses, Credit Quality and Other - Presentation of TDR's on Non-Accrual Status (Detail) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) contract	Dec. 31, 2021 USD ($) contract
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	18	18
Recorded Balance | $	$ 735	$ 1,076
Commercial real estate loans | Non-farm/non-residential
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	1	2
Recorded Balance | $	$ 5	$ 7
Commercial real estate loans | Construction/land development
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	1	1
Recorded Balance | $	$ 199	$ 210
Commercial real estate loans | Agricultural
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	0	1
Recorded Balance | $	$ 0	$ 262
Residential real estate loans | Residential 1-4 family
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	5	5
Recorded Balance | $	$ 352	$ 388
Total real estate
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	7	9
Recorded Balance | $	$ 556	$ 867
Consumer
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	3	3
Recorded Balance | $	$ 3	$ 3
Commercial and industrial
Financing Receivable, Modifications [Line Items]
Number of Loans | contract	8	6
Recorded Balance | $	$ 176	$ 206

XML

Allowance for Credit Losses, Credit Quality and Other - Summary of Total Foreclosed Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Commercial real estate loans | Non-farm/non-residential
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	$ 49	$ 536
Commercial real estate loans | Construction/land development
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	55	834
Residential real estate loans | Residential 1-4 family
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	269	260
Total real estate
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	$ 373	$ 1,630

XML

Goodwill and Core Deposits and Other Intangibles - Summary of Changes in Carrying Amount and Accumulated Amortization of Company's Goodwill and Core Deposits and Other Intangibles (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended			12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2021
Goodwill
Balance, beginning of period			$ 973,025		$ 973,025	$ 973,025
Acquisition of Happy Bancshares			425,375			0
Balance, end of period	$ 1,398,400		1,398,400	$ 973,025		973,025
Core Deposit and Other Intangibles
Balance, beginning of period			25,045	27,886	30,728	30,728
Acquisition of Happy Bancshares			42,263		0
Amortization expense	(2,477)	$ (1,421)	(3,898)	(2,841)	(2,842)
Balance, end of year	$ 63,410	$ 27,886	$ 63,410	$ 25,045	$ 27,886	$ 25,045

XML

Goodwill and Core Deposits and Other Intangibles - Summary of Carrying Amount and Accumulated Amortization of Core Deposits and Other Intangibles (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Gross carrying basis	$ 128,888	$ 86,625
Accumulated amortization	(65,478)	(61,580)
Net carrying amount	$ 63,410	$ 25,045	$ 27,886	$ 30,728

XML

Goodwill and Core Deposits and Other Intangibles - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Core deposit and other intangible amortization	$ 2,477	$ 1,421	$ 3,898	$ 2,841	$ 2,842
Amortization expense for year 2022	8,900		8,900
Amortization expense for year 2023	9,700		9,700
Amortization expense for year 2024	8,500		8,500
Amortization expense for year 2025	8,100		8,100
Amortization expense for year 2026	7,800		7,800
Carrying amount of Company's goodwill	$ 1,398,400		$ 1,398,400	$ 973,025		$ 973,025

XML

Other Assets - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Schedule Of Other Assets [Line Items]
Other assets	$ 270,987	$ 177,020
Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("Federal Reserve")
Schedule Of Other Assets [Line Items]
Fair value of equity securities	112,100	88,200
First National Bankers' Bank and Other Miscellaneous Holdings
Schedule Of Other Assets [Line Items]
Fair value of equity securities	$ 70,300	$ 36,400

XML

Deposits - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Deposits [Line Items]
Time deposits with a minimum denomination of $250,000	$ 353,200		$ 353,200		$ 321,600
Time deposits with a minimum denomination of $100,000	688,200		688,200		537,400
Interest expense applicable to certificate	661	$ 2,000	1,400	$ 4,400
Brokered deposits	626,900		626,900		625,700
Total deposits	19,580,072		19,580,072		14,260,570
State and political subdivisions
Deposits [Line Items]
Total deposits	$ 2,690,000		$ 2,690,000		$ 1,910,000

XML

Securities Sold Under Agreements to Repurchase - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Securities Sold under Agreements to Repurchase [Abstract]
Securities sold under agreements to repurchase	$ 118,573		$ 118,573		$ 140,886
Securities sold under agreements to repurchase daily weighted average	$ 123,100	$ 157,600	$ 130,200	$ 158,600

XML

Securities Sold Under Agreements to Repurchase - Summary of Remaining Contractual Maturity of Securities Sold Under Agreements to Repurchase (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	$ 118,573	$ 140,886
Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	118,573	140,886
Up to 30 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
30-90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
Greater than 90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
U.S. government-sponsored enterprises
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	6,540	8,433
U.S. government-sponsored enterprises | Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	6,540	8,433
U.S. government-sponsored enterprises | Up to 30 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
U.S. government-sponsored enterprises | 30-90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
U.S. government-sponsored enterprises | Greater than 90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
Mortgage-backed securities
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	3,300	7,920
Mortgage-backed securities | Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	3,300	7,920
Mortgage-backed securities | Up to 30 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
Mortgage-backed securities | 30-90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
Mortgage-backed securities | Greater than 90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
State and political subdivisions
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	105,319	122,173
State and political subdivisions | Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	105,319	122,173
State and political subdivisions | Up to 30 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
State and political subdivisions | 30-90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
State and political subdivisions | Greater than 90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
Other securities
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	3,414	2,360
Other securities | Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	3,414	2,360
Other securities | Up to 30 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
Other securities | 30-90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	0	0
Other securities | Greater than 90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	$ 0	$ 0

XML

FHLB and Other Borrowed Funds - Additional Information (Detail) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Borrowed Funds [Line Items]
FHLB borrowed funds	$ 400,000,000	$ 400,000,000
Other short term borrowings	0	0
Line of credit	1,090,000,000.00	1,070,000,000.00
Line of Credit
Borrowed Funds [Line Items]
Line of credit	0	$ 0
Credit facility, maximum borrowing capacity	$ 20,000,000
Minimum
Borrowed Funds [Line Items]
FHLB interest rate	1.76%
Maximum
Borrowed Funds [Line Items]
FHLB interest rate	2.26%

XML

Subordinated Debentures - Preferred Trust Securities and Subordinated Debt Securities (Detail) - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
	Jan. 18, 2022	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total		$ 458,455	$ 371,093
Trust preferred securities
Debt Instrument [Line Items]
Total		5,100
Subordinated debentures, issued in 2004, due 2034, floating rate of 4.00% above the three-month LIBOR rate, reset quarterly, currently callable without penalty | Trust preferred securities
Debt Instrument [Line Items]
Total		$ 2,165	$ 0
Subordinated debentures, issued in 2004, due 2034, floating rate of 4.00% above the three-month LIBOR rate, reset quarterly, currently callable without penalty | Trust preferred securities | LIBOR
Debt Instrument [Line Items]
Floating rate		4.00%	4.00%
Subordinated debentures, issued in 2003, due 2034, floating rate of 2.95% above the three-month LIBOR rate, reset quarterly, currently callable without penalty | Trust preferred securities
Debt Instrument [Line Items]
Total		$ 10,310	$ 0
Subordinated debentures, issued in 2003, due 2034, floating rate of 2.95% above the three-month LIBOR rate, reset quarterly, currently callable without penalty | Trust preferred securities | LIBOR
Debt Instrument [Line Items]
Floating rate		2.95%	2.95%
Subordinated debentures, issued in 2005, due 2035, floating rate of 2.15% above the three-month LIBOR rate, reset quarterly, currently callable without penalty | Trust preferred securities
Debt Instrument [Line Items]
Total		$ 5,155	$ 4,501
Subordinated debentures, issued in 2005, due 2035, floating rate of 2.15% above the three-month LIBOR rate, reset quarterly, currently callable without penalty | Trust preferred securities | LIBOR
Debt Instrument [Line Items]
Floating rate		2.15%	2.15%
Subordinated debentures, issued in 2006, due 2036, fixed rate of 6.75% during the first five years and at a floating rate of 1.85% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty | Trust preferred securities
Debt Instrument [Line Items]
Total		$ 0	$ 3,093
Fixed rate		6.75%	6.75%
Subordinated debentures, issued in 2006, due 2036, fixed rate of 6.75% during the first five years and at a floating rate of 1.85% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty | Trust preferred securities | LIBOR
Debt Instrument [Line Items]
Floating rate		1.85%	1.85%
Subordinated debentures, issued in 2004, due 2034, fixed rate of 6.00% during the first five years and at a floating rate of 2.00% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty | Trust preferred securities
Debt Instrument [Line Items]
Total		$ 0	$ 15,464
Fixed rate		6.00%	6.00%
Subordinated debentures, issued in 2004, due 2034, fixed rate of 6.00% during the first five years and at a floating rate of 2.00% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty | Trust preferred securities | LIBOR
Debt Instrument [Line Items]
Floating rate		2.00%	2.00%
Subordinated debentures, issued in 2005, due 2035, fixed rate of 5.84% during the first five years and at a floating rate of 1.45% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty | Trust preferred securities
Debt Instrument [Line Items]
Total		$ 0	$ 25,774
Fixed rate		5.84%	5.84%
Subordinated debentures, issued in 2005, due 2035, fixed rate of 5.84% during the first five years and at a floating rate of 1.45% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty | Trust preferred securities | LIBOR
Debt Instrument [Line Items]
Floating rate		1.45%	1.45%
Subordinated debentures, issued in 2004, due 2034, fixed rate of 4.29% during the first five years and at a floating rate of 2.50% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty | Trust preferred securities
Debt Instrument [Line Items]
Total		$ 0	$ 16,495
Fixed rate		4.29%	4.29%
Subordinated debentures, issued in 2004, due 2034, fixed rate of 4.29% during the first five years and at a floating rate of 2.50% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty | Trust preferred securities | LIBOR
Debt Instrument [Line Items]
Floating rate		2.50%	2.50%
Subordinated debentures, issued in 2006, due 2036, fixed rate of 7.38% during the first five years and at a floating rate of 1.62% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty | Trust preferred securities
Debt Instrument [Line Items]
Total		$ 0	$ 5,942
Fixed rate		7.38%	7.38%
Subordinated debentures, issued in 2006, due 2036, fixed rate of 7.38% during the first five years and at a floating rate of 1.62% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty | Trust preferred securities | LIBOR
Debt Instrument [Line Items]
Floating rate		1.62%	1.62%
Subordinated notes, net of issuance costs, issued in 2020, due 2030, fixed rate of 5.50% during the first five years and at a floating rate of 534.5 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2025 without penalty | Subordinated debt securities
Debt Instrument [Line Items]
Total		$ 144,063	$ 0
Fixed rate		5.50%
Subordinated notes, net of issuance costs, issued in 2020, due 2030, fixed rate of 5.50% during the first five years and at a floating rate of 534.5 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2025 without penalty | Subordinated debt securities | SOFR
Debt Instrument [Line Items]
Floating rate		5.345%
Subordinated notes, net of issuance costs, issued in 2022, due 2032, fixed rate of 3.125% during the first five years and at a floating rate of 182 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2027 without penalty | SOFR
Debt Instrument [Line Items]
Floating rate	1.82%
Subordinated notes, net of issuance costs, issued in 2022, due 2032, fixed rate of 3.125% during the first five years and at a floating rate of 182 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2027 without penalty | Subordinated debt securities
Debt Instrument [Line Items]
Total		$ 296,762	0
Fixed rate		3.125%
Subordinated notes, net of issuance costs, issued in 2022, due 2032, fixed rate of 3.125% during the first five years and at a floating rate of 182 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2027 without penalty | Subordinated debt securities | SOFR
Debt Instrument [Line Items]
Floating rate		1.82%
Subordinated notes, net of issuance costs, issued in 2017, due 2027, fixed rate of 5.625% during the first five years and at a floating rate of 3.575% above the then three-month LIBOR rate, reset quarterly, thereafter, callable in 2022 without penalty | Subordinated debt securities
Debt Instrument [Line Items]
Total		$ 0	$ 299,824
Fixed rate		5.625%	5.625%
Subordinated notes, net of issuance costs, issued in 2017, due 2027, fixed rate of 5.625% during the first five years and at a floating rate of 3.575% above the then three-month LIBOR rate, reset quarterly, thereafter, callable in 2022 without penalty | Subordinated debt securities | LIBOR
Debt Instrument [Line Items]
Floating rate		3.575%	3.575%

XML

Subordinated Debentures - Additional Information (Detail) - USD ($) $ in Thousands					3 Months Ended	6 Months Ended		12 Months Ended
	Apr. 15, 2022	Apr. 01, 2022	Jan. 18, 2022	Apr. 03, 2017	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Retirement of subordinated debentures						$ 300,000	$ 0
Subordinated debentures					$ 458,455	458,455		$ 371,093
Trust preferred securities, face amount			$ 300,000
Subordinated notes, Interest rate			3.125%
Proceeds from issuance of subordinated debentures			$ 296,400			296,444	$ 0
Happy Bancshares, Inc.
Debt Instrument [Line Items]
Subordinated debentures		$ 159,965			$ 167,590	$ 167,590
5.625% Fixed-to-Floating Rate Subordinated Notes due 2027
Debt Instrument [Line Items]
Trust preferred securities, face amount				$ 300,000
Subordinated notes, Interest rate				5.625%
Proceeds from issuance of subordinated debentures				$ 297,000
Percentage of redemption price on principal					100.00%	100.00%
LIBOR | 5.625% Fixed-to-Floating Rate Subordinated Notes due 2027
Debt Instrument [Line Items]
Floating rate				3.575%
SOFR | 3.125% Fixed to Floating Rate Subordinated Notes due 2032
Debt Instrument [Line Items]
Floating rate			1.82%
Trust preferred securities
Debt Instrument [Line Items]
Face value of company held trust preferred securities					$ 17,600	$ 17,600
Retirement of subordinated debentures					68,100
Subordinated debentures					5,100	5,100
Trust preferred securities | Happy Bancshares, Inc.
Debt Instrument [Line Items]
Subordinated debentures		23,200			12,500	12,500
Retirement of subordinated debentures					10,700
Subordinated debt securities | Happy Bancshares, Inc.
Debt Instrument [Line Items]
Subordinated debentures		$ 140,000
Fixed rate		5.50%
Subordinated debt securities | 3.125% Fixed to Floating Rate Subordinated Notes due 2032
Debt Instrument [Line Items]
Subordinated debentures					$ 296,762	$ 296,762		0
Fixed rate					3.125%	3.125%
Subordinated debt securities | Subordinated notes, net of issuance costs, issued in 2017, due 2027, fixed rate of 5.625% during the first five years and at a floating rate of 3.575% above the then three-month LIBOR rate, reset quarterly, thereafter, callable in 2022 without penalty
Debt Instrument [Line Items]
Retirement of subordinated debentures	$ 300,000
Subordinated debentures					$ 0	$ 0		$ 299,824
Fixed rate					5.625%	5.625%		5.625%
Subordinated debt securities | LIBOR | Subordinated notes, net of issuance costs, issued in 2017, due 2027, fixed rate of 5.625% during the first five years and at a floating rate of 3.575% above the then three-month LIBOR rate, reset quarterly, thereafter, callable in 2022 without penalty
Debt Instrument [Line Items]
Floating rate						3.575%		3.575%
Subordinated debt securities | SOFR | Happy Bancshares, Inc.
Debt Instrument [Line Items]
Floating rate		5.345%
Subordinated debt securities | SOFR | 3.125% Fixed to Floating Rate Subordinated Notes due 2032
Debt Instrument [Line Items]
Floating rate						1.82%

XML

Income Taxes - Summary of Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Current:
Federal	$ 19,242	$ 15,175	$ 33,207	$ 38,058
State	5,077	5,024	8,761	12,599
Total current	24,319	20,199	41,968	50,657
Deferred:
Federal	(16,636)	3,661	(14,752)	2,488
State	(4,389)	1,212	(3,893)	823
Total deferred	(21,025)	4,873	(18,645)	3,311
Income tax expense	$ 3,294	$ 25,072	$ 23,323	$ 53,968

XML

Income Taxes - Reconciliation between Statutory Federal Income Tax Rate and Effective Income Tax Rate (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Statutory federal income tax rate	21.00%	21.00%	21.00%	21.00%
Effect of non-taxable interest income	(8.30%)	(1.03%)	(2.53%)	(0.97%)
Stock compensation	0.90%	0.16%	0.58%	0.25%
State income taxes, net of federal benefit	(4.38%)	4.18%	2.56%	4.22%
Executive officer compensation & other	7.87%	(0.24%)	0.77%	(0.48%)
Effective income tax rate	17.09%	24.07%	22.38%	24.02%

XML

Income Taxes - Differences Between Tax Basis of Assets and Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Deferred tax assets:
Allowance for credit losses	$ 84,584	$ 68,644
Deferred compensation	5,310	5,342
Stock compensation	6,211	5,044
Non-accrual interest income	1,914	694
Real estate owned	109	109
Unrealized loss on investment securities, available-for-sale	72,534	0
Loan discounts	8,550	4,169
Tax basis premium/discount on acquisitions	2,216	3,220
Investments	34,527	263
Deposits	207	0
Other	17,392	5,283
Gross deferred tax assets	233,554	92,768
Deferred tax liabilities:
Accelerated depreciation on premises and equipment	4,095	761
Unrealized gain on securities	0	4,220
Core deposit intangibles	15,360	5,736
FHLB dividends	2,782	2,820
Other	2,732	941
Gross deferred tax liabilities	24,969	14,478
Net deferred tax assets	$ 208,585	$ 78,290

XML

Common Stock, Compensation Plans and Other - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended				6 Months Ended	12 Months Ended	17 Months Ended
	Jan. 22, 2021	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized		300,000,000				300,000,000	300,000,000	300,000,000
Common stock, par value (in dollars per share)		$ 0.01				$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized		5,500,000				5,500,000		5,500,000
Preferred stock, par value (in dollars per share)		$ 0.01				$ 0.01		$ 0.01
Number of additional shares authorized to repurchase (in shares)	20,000,000
Number of shares repurchased during period		1,032,732	180,000	635,000	330,000	1,212,732
Weighted average stock price (in dollars per share)						$ 21.89
Repurchase of combining of all the shares								18,874,067
Remaining balance available for repurchase (in shares)		20,877,933				20,877,933		20,877,933
Shares of common stock reserved for issuance		5,761,527				5,761,527		5,761,527
Intrinsic value of stock options outstanding		$ 5,700				$ 5,700		$ 5,700
Intrinsic value of stock options vested		5,400				5,400		5,400
Intrinsic value of stock options exercised						259
Unrecognized compensation cost net of income tax benefit, related to non-vested awards		$ 5,500				$ 5,500		$ 5,500
Weighted average fair value of options granted (in dollars per share)						$ 5.17
Options granted (in shares)						178,000	15,000
2022 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for grants under the plan (in shares)		14,788,000				14,788,000		14,788,000
Additional shares authorized (in shares)						1,500,000
Remaining shares of common stock available for future grants		2,617,211				2,617,211		2,617,211
2006 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for grants under the plan (in shares)		13,288,000				13,288,000		13,288,000
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost net of income tax benefit, related to non-vested stock option awards		$ 19,200				$ 19,200		$ 19,200

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Common Stock, Compensation Plans and Other - Summary of Stock Option Transactions under Plan (Detail) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Shares
Outstanding, beginning of year (in shares)	3,015,000	3,254,000
Granted (in shares)	178,000	15,000
Forfeited/Expired (in shares)	(29,000)	(57,000)
Exercised (in shares)	(20,000)	(197,000)
Outstanding, end of year (in shares)	3,144,000	3,015,000
Exercisable, end of year (in shares)	1,813,000	1,543,000
Weighted- Average Exercisable Price
Outstanding, beginning of year (in dollars per share)	$ 20.06	$ 19.77
Granted (in dollars per share)	21.04	21.68
Forfeited/Expired (in dollars per share)	22.83	22.44
Exercised (in dollars per share)	10.63	14.78
Outstanding, ending of year (in dollars per share)	20.14	20.06
Exercisable Weighted Average Exercisable Price, end of year (in dollars per share)	$ 18.46	$ 17.46

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Common Stock, Compensation Plans and Other - Summary of Stock Options on Valuation Assumptions (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected dividend yield	3.15%	2.59%
Expected stock price volatility	31.22%	70.13%
Risk-free interest rate	2.80%	0.75%
Expected life of options	6 years 6 months	6 years 6 months

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Common Stock, Compensation Plans and Other - Summary of Currently Outstanding and Exercisable Options (Detail) shares in Thousands	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Options Outstanding Shares | shares	3,144
Options Exercisable Shares | shares	1,813
$6.56 to $8.62
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	$ 6.56
Exercise Prices, Upper Range Limit (in dollars per share)	$ 8.62
Options Outstanding Shares | shares	140
Weighted- Average Remaining Contractual Life (in years)	6 months 18 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 8.62
Options Exercisable Shares | shares	140
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 8.62
$9.54 to $14.71
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	9.54
Exercise Prices, Upper Range Limit (in dollars per share)	$ 14.71
Options Outstanding Shares | shares	140
Weighted- Average Remaining Contractual Life (in years)	2 years 18 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 13.23
Options Exercisable Shares | shares	140
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 13.23
$16.77 to $16.86
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	16.77
Exercise Prices, Upper Range Limit (in dollars per share)	$ 16.86
Options Outstanding Shares | shares	130
Weighted- Average Remaining Contractual Life (in years)	2 years 1 month 20 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 16.80
Options Exercisable Shares | shares	130
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 16.80
$17.12 to $17.36
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	17.12
Exercise Prices, Upper Range Limit (in dollars per share)	$ 17.36
Options Outstanding Shares | shares	92
Weighted- Average Remaining Contractual Life (in years)	2 years 8 months 19 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 17.13
Options Exercisable Shares | shares	92
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 17.13
$17.40 to $18.46
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	17.40
Exercise Prices, Upper Range Limit (in dollars per share)	$ 18.46
Options Outstanding Shares | shares	871
Weighted- Average Remaining Contractual Life (in years)	3 years 1 month 17 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 18.45
Options Exercisable Shares | shares	738
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 18.45
$18.50 to $20.16
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	18.50
Exercise Prices, Upper Range Limit (in dollars per share)	$ 20.16
Options Outstanding Shares | shares	41
Weighted- Average Remaining Contractual Life (in years)	6 years 9 months 10 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 19.05
Options Exercisable Shares | shares	23
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 19.05
$20.46 to $21.25
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	20.46
Exercise Prices, Upper Range Limit (in dollars per share)	$ 21.25
Options Outstanding Shares | shares	293
Weighted- Average Remaining Contractual Life (in years)	6 years 6 months 29 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 20.79
Options Exercisable Shares | shares	149
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 21.10
$21.31 to $22.22
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	21.31
Exercise Prices, Upper Range Limit (in dollars per share)	$ 22.22
Options Outstanding Shares | shares	132
Weighted- Average Remaining Contractual Life (in years)	6 years 8 months 4 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 22.18
Options Exercisable Shares | shares	82
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 22.21
$22.70 to $23.32
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	22.70
Exercise Prices, Upper Range Limit (in dollars per share)	$ 23.32
Options Outstanding Shares | shares	1,208
Weighted- Average Remaining Contractual Life (in years)	6 years 21 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 23.32
Options Exercisable Shares | shares	246
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 23.32
$23.51 to $25.96
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	23.51
Exercise Prices, Upper Range Limit (in dollars per share)	$ 25.96
Options Outstanding Shares | shares	99
Weighted- Average Remaining Contractual Life (in years)	5 years 9 months 21 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 25.39
Options Exercisable Shares | shares	73
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 25.85

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Common Stock, Compensation Plans and Other - Summary of Company's Restricted Stock Issued and Outstanding (Detail) - USD ($) shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
Beginning of year (in shares)	1,231	1,371
Issued (in shares)	391	216
Vested (in shares)	(177)	(320)
Forfeited (in shares)	(31)	(36)
End of year (in shares)	1,414	1,231
Amount of expense for nine months and twelve months ended, respectively (in shares)	$ 3,664	$ 7,112

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Non-Interest Expense - Components of Non-Interest Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Noninterest Expense [Abstract]
Salaries and employee benefits	$ 65,795	$ 42,462	$ 109,346		$ 84,521
Occupancy and equipment	14,256	9,042	23,400		18,279
Data processing expense	10,094	5,893	17,133		11,763
Merger and acquisition expenses	48,731	0	49,594		0
Other operating expenses:
Advertising	2,117	1,194	3,383		2,240
Amortization of intangibles	2,477	1,421	3,898	$ 2,841	2,842
Electronic banking expense	3,352	2,616	5,890		4,854
Directors’ fees	375	414	779		797
Due from bank service charges	396	273	666		522
FDIC and state assessment	2,390	1,108	4,058		2,471
Insurance	973	787	1,743		1,568
Legal and accounting	1,061	1,058	1,858		1,904
Other professional fees	2,254	1,796	3,863		3,409
Operating supplies	995	465	1,749		952
Postage	556	292	862		630
Telephone	384	365	721		711
Other expense	9,276	3,796	13,435		8,385
Total other operating expenses	26,606	15,585	42,905		31,285
Total non-interest expense	$ 165,482	$ 72,982	$ 242,378		$ 145,848

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Leases - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Right of use asset	$ 45,600	$ 45,600	$ 39,600
Lease liability	$ 48,702	$ 48,702	$ 42,409
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Bank premises and equipment, net	Bank premises and equipment, net	Bank premises and equipment, net
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued interest payable and other liabilities	Accrued interest payable and other liabilities	Accrued interest payable and other liabilities
Lease rent expense	$ 36	$ 73
Lease expense rate	1.56%	1.66%

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Leases - Minimum Rental Commitment under Operating Leases (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Remainder of fiscal year	$ 4,547
Year 1	8,153	$ 7,714
Year 2	7,296	6,574
Year 3	6,568	6,001
Year 4	6,308	5,510
Thereafter	30,335
Year 5		5,389
Thereafter		24,999
Total future minimum lease payments	63,207	56,187
Discount effect of cash flows	(14,505)	(13,778)
Present value of net future minimum lease payments	$ 48,702	$ 42,409

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Leases - Additional Information of Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Lease expense:
Operating lease expense	$ 2,116	$ 1,981	$ 3,939	$ 3,990
Short-term lease expense	0	1	1	5
Variable lease expense	218	251	443	508
Total lease expense	2,334	2,233	4,383	4,503
Other information:
Cash paid for amounts included in the measurement of lease liabilities	$ 2,154	$ 1,974	$ 3,983	$ 3,968
Weighted-average remaining lease term (in years)	9 years 3 months 29 days	9 years 9 months	9 years 5 months 1 day	9 years 10 months 2 days
Weighted-average discount rate	3.38%	3.53%	3.39%	3.53%

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Significant Estimates and Concentrations of Credit Risks - Additional Information (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Loans Receivable | Geographic Concentration | South Alabama, Arkansas, Florida and New York City
Commitment And Contingencies [Line Items]
Concentration percentage	78.00%
Loans Receivable | Commercial Real Estate | Credit Concentration
Commitment And Contingencies [Line Items]
Concentration percentage	57.60%	59.70%
Loans Receivable | Residential Real Estate | Credit Concentration
Commitment And Contingencies [Line Items]
Concentration percentage	15.10%	15.80%
Total Stockholders' Equity | Commercial Real Estate | Credit Concentration
Commitment And Contingencies [Line Items]
Concentration percentage	229.20%	212.20%
Total Stockholders' Equity | Residential Real Estate | Credit Concentration
Commitment And Contingencies [Line Items]
Concentration percentage	60.00%	56.30%
Residential Real Estate Loans | Geographic Concentration | South Alabama, Arkansas, Florida and New York City
Commitment And Contingencies [Line Items]
Concentration percentage	82.10%

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Commitments and Contingencies - Additional Information (Detail) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments to extend credit outstanding	$ 4,470,000,000	$ 3,050,000,000.00
Maximum amount of future payments by the company	$ 164,900,000	$ 110,800,000

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Regulatory Matters - Additional Information (Detail) $ in Millions		6 Months Ended
	Mar. 27, 2020	Jun. 30, 2022 USD ($)	Jan. 01, 2019	Jan. 01, 2017	Jan. 01, 2016	Jul. 31, 2013 USD ($)
Regulatory Matters [Line Items]
Percentage of retained earnings plus current year earnings to be paid as maximum dividend		75.00%
Requested dividend by the company from its subsidiary		$ 53.1
Basel III
Regulatory Matters [Line Items]
Consolidated risk weighted asset						$ 500.0
Capital required for capital adequacy to risk weighted assets		0.025
Capital conservation buffer, percentage					0.00625
Increase in capital conservation buffer				0.00625
Capital requirement, ratio			0.025
Basel III | Criteria 1
Regulatory Matters [Line Items]
Tier 1 risk-based capital ratio		0.045
Tier 1 leverage capital ratio		0.04
Risk-based capital ratio		0.06
Risk-based capital ratio		0.08
Basel III | Criteria 2
Regulatory Matters [Line Items]
Risk-based capital ratio		0.1661
Common equity Tier 1 risk-based capital ratio		0.065
Tier 1 leverage capital ratio		0.05
Tier 1 risk-based capital ratio		0.08
Total risk-based capital ratio		0.10
Common equity Tier 1 risk-based capital ratio		0.1278
Tier 1 leverage capital ratio		0.0977
Tier 1 risk-based capital ratio		0.1288
CECL | COVID -19
Regulatory Matters [Line Items]
Allowable percentage of bank holding companies impact	100.00%
Percentage of allowance for credit losses	25.00%

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Additional Cash Flow Information - Additional Information (Details) - Happy Bancshares, Inc. - USD ($) $ in Thousands, shares in Millions	Apr. 01, 2022	Jun. 30, 2022
Business Acquisition [Line Items]
Total assets acquired	$ 6,755,152	$ 6,683,052
Cash and cash equivalents	859,030	858,898
Total liabilities assumed	6,139,373	$ 6,145,889
Total transaction value	$ 962,538
Common Stock
Business Acquisition [Line Items]
Business acquisition, equity interest issuable, number of shares (in shares)	42.4
Business acquisition, equity interest issuable, value	$ 958,800
Total transaction value	962,500
Stock-based Awards
Business Acquisition [Line Items]
Business acquisition, equity interest issuable, value	$ 3,700

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Additional Cash Flow Information - Summary of Additional Cash Flow Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract]
Interest paid	$ 27,605	$ 28,428
Income taxes paid	38,553	58,685
Assets acquired by foreclosure	$ 9	$ 1,951

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Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of foreclosed assets held for sale	$ 0		$ 0
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of collateral discount			10.00%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of collateral discount			60.00%
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of loans with specific allocated losses	323,100,000		$ 323,100,000		$ 280,000,000
Accrued interest receivable reversed	77,000	$ 126,000	149,000	$ 184,000
Fair value of foreclosed assets held for sale	$ 373,000		$ 373,000		$ 1,600,000

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Financial Instruments - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - available for sale	$ 3,791,509	$ 3,119,807
Investment securities - held-to-maturity	1,273,280
U.S. Treasuries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - held-to-maturity	276,029
State and political subdivisions
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - available for sale	934,531	996,978
Investment securities - held-to-maturity	997,251
Fair Value, Inputs, Level 1 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	2,816,376	3,650,315
Accrued interest receivable	80,274	46,736
Marketable equity securities	33,631	17,110
Demand and non-interest bearing	6,036,583	4,127,878
Savings and interest-bearing transaction accounts	12,424,192	9,251,805
Securities sold under agreements to repurchase	118,573	140,886
Accrued interest payable	9,203	4,798
Fair Value, Inputs, Level 1 | Carrying Amount | U.S. Treasuries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - held-to-maturity	277,688
Fair Value, Inputs, Level 1 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	2,816,376	3,650,315
Accrued interest receivable	80,274	46,736
Marketable equity securities	33,631	17,110
Demand and non-interest bearing	6,036,583	4,127,878
Savings and interest-bearing transaction accounts	12,424,192	9,251,805
Securities sold under agreements to repurchase	118,573	140,886
Accrued interest payable	9,203	4,798
Fair Value, Inputs, Level 1 | Fair Value | U.S. Treasuries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - held-to-maturity	276,029
Fair Value, Inputs, Level 2 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - available for sale	3,791,509	3,119,807
FHLB and other borrowed funds	400,000	400,000
Fair Value, Inputs, Level 2 | Carrying Amount | State and political subdivisions
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - held-to-maturity	1,089,093
Fair Value, Inputs, Level 2 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - available for sale	3,791,509	3,119,807
FHLB and other borrowed funds	400,025	401,362
Fair Value, Inputs, Level 2 | Fair Value | State and political subdivisions
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - held-to-maturity	997,251
Fair Value, Inputs, Level 3 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans receivable, net of impaired loans and allowance	13,302,682	9,319,421
FHLB, FRB & FNBB Bank stock; other equity investments	182,399	124,638
Time deposits	1,119,297	880,887
Subordinated debentures	458,455	371,093
Fair Value, Inputs, Level 3 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans receivable, net of impaired loans and allowance	13,695,308	9,503,261
FHLB, FRB & FNBB Bank stock; other equity investments	182,399	124,638
Time deposits	1,096,797	901,280
Subordinated debentures	$ 430,470	$ 374,894