EX-99.1 2 homb033123earningsrelease.htm EX-99.1 Document

EXHIBIT 99.1
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For Immediate Release:April 20, 2023

HOMB’s Balance Sheet Continues to Weather the Storm
Conway, AR – Home BancShares, Inc. (NYSE: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.
Highlights of the First Quarter of 2023:
MetricQ1 2023Q4 2022Q3 2022Q2 2022Q1 2022
Net income
$103.0 million
$115.7 million
$108.7 million
$16.0 million
$64.9 million
Total revenue (net)
$248.8 million
$272.3 million
$256.3 million
$243.3 million
$161.8 million
Income before income taxes
$132.9 million
$148.4 million
$142.0 million
$19.3 million
$84.9 million
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)
$134.1 million
$153.4 million
$142.0 million
$77.9 million
$84.9 million
Pre-tax net income to total revenue (net)
53.43%
54.50%
55.39%
7.92%
52.48%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)
53.91%
56.34%
55.39%
32.00%
52.48%
ROA
1.84%
1.98%
1.81%0.26%1.43%
NIM
4.37%
4.21%
4.05%3.64%3.21%
Purchase accounting accretion
$3.2 million
$3.5 million
$4.6 million
$5.2 million
$3.1 million
ROE
11.70%
13.29%
12.25%1.78%9.58%
ROTCE (non-GAAP)(1)
19.75%
22.96%
20.93%2.96%15.03%
Diluted earnings per share
$0.51
$0.57
$0.53$0.08$0.40
Non-performing assets to total assets
0.33%
0.27%
0.27%0.25%0.25%
Common equity tier 1 capital13.2%12.9%13.0%12.8%14.9%
Leverage11.4%10.9%10.4%9.8%10.8%
Tier 1 capital13.2%12.9%13.0%12.9%15.5%
Total risk-based capital16.8%16.5%16.7%16.6%21.6%
Allowance for credit losses to total loans
2.00%
2.01%
2.09%2.11%2.34%
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
“The strength of Home BancShares’ liquidity and availability provides more than 100% coverage for all uninsured and uncollateralized depositors as of March 31, 2023,” stated John Allison, Chairman and CEO of HOMB. “The strong liquidity of HOMB would have allowed HOMB to pay all uninsured and uncollateralized deposits in excess of the FDIC limits of $250,000 and still have $1.7 billion remaining,” Allison continued.
“We are very proud of the fortress balance sheet we have built at Home BancShares. Home BancShares with its wholly-owned subsidiary Centennial Bank is one of the strongest financial institutions in America. There are only a handful of banks in the country that can make that statement. Our strength and liquidity have put HOMB in an enviable position,” Allison added.
“As the banking environment continues to be volatile, our ability to pay uninsured and uncollateralized deposits at Centennial Bank and deliver strong earnings for our shareholders is nothing less than remarkable,” said Tracy French, President and CEO of Centennial Bank.




Liquidity and Funding Sources

At March 31, 2023, the Company held $2.74 billion in net available internal liquidity. This balance consisted of $2.15 billion in unpledged investment securities which could be used for additional secured borrowing capacity, $407.2 million in cash with the Federal Reserve Bank (FRB) and $185.9 million in other liquid cash accounts.
Consistent with the Company’s practice of maintaining access to significant external liquidity, the Company had $4.18 billion in net available external liquidity as of March 31, 2023. This included $5.20 billion in available liquidity with the Federal Home Loan Bank (FHLB), of which $1.80 billion has been drawn upon in the ordinary course of business, resulting in $3.40 billion in net available liquidity with the FHLB as of March 31, 2023. The $1.80 billion consisted of $650.0 million in outstanding FHLB advances and $1.15 billion used for pledging purposes. The Company also had access to approximately $677.7 million in liquidity with the FRB as of March 31, 2023. This consisted of $71.8 million available from the Discount Window and $605.9 million available through the Bank Term Funding Program (BTFP). As of March 31, 2023, the Company also had access to $55.0 million from First National Bankers’ Bank (FNBB), and $45.0 million from other various external sources.
Overall, the Company had $6.92 billion net available liquidity as of March 31, 2023, which consisted of $2.74 billion of net available internal liquidity and $4.18 billion in net available external liquidity. Details on the Company’s available liquidity as of March 31, 2023 is available below.
(in thousands)Total AvailableAmount UsedNet Availability
Internal Sources
Unpledged investment securities (market value)$2,150,186 $— $2,150,186 
Cash at FRB407,210 — 407,210 
Other liquid cash accounts185,943 — 185,943 
   Total Internal Liquidity2,743,339 — 2,743,339 
External Sources
FHLB5,201,603 1,798,490 3,403,113 
FRB Discount Window71,755 — 71,755 
BTFP (par value)605,896 — 605,896 
FNBB55,000 — 55,000 
Other45,000 — 45,000 
    Total External Liquidity5,979,254 1,798,490 4,180,764 
         Total Available Liquidity$8,722,593 $1,798,490 $6,924,103 





The Company has continued to limit its exposure to uninsured deposits and has been actively monitoring this in light of the current banking environment. As of March 31, 2023, the Company held approximately $7.89 billion in uninsured deposits of which $2.68 billion were collateralized deposits, for a net position of $5.21 billion. This represents approximately 29.9% of total deposits. In addition, net available liquidity exceeded uninsured and uncollateralized deposits by $1.71 billion.
(in thousands)As of
March 31, 2023
Uninsured Deposits$7,892,121 
Collateralized Deposits2,683,804 
Net Uninsured Position$5,208,317 
Total Available Liquidity$6,924,103 
Net Uninsured Position5,208,317 
Net Available Liquidity in Excess of Uninsured Deposits$1,715,786 
In the event the Company’s $5.21 billion net position of uninsured deposits had been called by depositors during the first quarter of 2023, the Company estimates that interest expense would have increased by approximately $64.2 million for the period ended March 31, 2023, assuming the event occurred on January 1, 2023. The outflow of deposits could have been funded through available sources of liquidity. In this event, the Company estimates that it would still have achieved return on average assets (ROA) of 1.21% for the period ended March 31, 2023.
Subsequent to the end of the quarter, the Company made the decision to pledge additional investment securities with a market value of $761.5 million in order to increase the Company’s BTFP borrowing capacity by $825.5 million, which represents the par value of the pledged investment securities. This increased the net available liquidity exceeding uninsured deposits by $64.0 million.

Operating Highlights
Net income for the three-month period ended March 31, 2023 was $103.0 million, or $0.51 diluted earnings per share. When adjusting for non-fundamental items, net income and diluted earnings per share on an as-adjusted basis (non-GAAP), was $108.9 million(1), or $0.54 per share(1) for the three months ended March 31, 2023.
Our net interest margin was 4.37% for the three-month period ended March 31, 2023, compared to 4.21% for the three-month period ended December 31, 2022. The yield on loans was 6.64% and 6.23% for the three months ended March 31, 2023 and December 31, 2022, respectively, as average loans increased from $14.11 billion to $14.47 billion. Additionally, the rate on interest bearing deposits increased to 1.90% as of March 31, 2023, from 1.45% as of December 31, 2022, while average interest-bearing balances decreased from $12.85 billion to $12.65 billion.
During the first quarter of 2023, there was $2.1 million of event interest income compared to event interest income of $871,000 for the fourth quarter of 2022.
Purchase accounting accretion on acquired loans was $3.2 million and $3.5 million and average purchase accounting loan discounts were $35.5 million and $38.6 million for the three-month periods ended March 31, 2023 and December 31, 2022, respectively.




Net interest income on a fully taxable equivalent basis was $216.2 million for the three-month period ended March 31, 2023, and $217.7 million for the three-month period ended December 31, 2022. This reduction in net interest income for the three-month period ended March 31, 2023, was the result of a $13.1 million increase in interest expense, partially offset by an $11.7 million increase in interest income. The $13.1 million increase in interest expense was due to a $12.1 million increase in interest expense on deposits and an $802,000 increase in interest expense on FHLB borrowed funds. The increase in interest expense on deposits and FHLB borrowed funds is a result of the rising interest rate environment. The $11.7 million increase in interest income was primarily the result of a $15.6 million increase in loan interest income and a $1.5 million increase in investment income, partially offset by a $5.4 million decrease in income from interest-bearing balances due from banks. The increase in interest income is a result of the rising interest rate environment as well as an increase in average loan balances during the quarter.
The Company reported $34.2 million of non-interest income for the first quarter of 2023. The most important components of first quarter non-interest income were $11.9 million from other income, $11.9 million from other service charges and fees, $9.8 million from service charges on deposit accounts, $4.9 million from trust fees, $2.8 million from dividends from FHLB, FRB, FNBB and other, $2.6 million in mortgage lending income and a $1.1 million increase in cash value of life insurance, partially offset by an $11.4 million fair value adjustment for marketable securities. The $11.9 million in other income includes $3.5 million in recoveries on historic losses.
Non-interest expense for the first quarter of 2023 was $114.6 million. The most important components of non-interest expense were $64.5 million from salaries and employee benefits, $26.2 million in other operating expense, $15.0 million in occupancy and equipment expenses and $9.0 million in data processing expenses. For the first quarter of 2023, our efficiency ratio was 44.80%; and our efficiency ratio, as adjusted (non-GAAP), was 43.42%(1).

Financial Condition
Total loans receivable were $14.39 billion at March 31, 2023, compared to $14.41 billion at December 31, 2022. Total deposits were $17.45 billion at March 31, 2023, compared to $17.94 billion at December 31, 2022. Total assets were $22.52 billion at March 31, 2023, compared to $22.88 billion at December 31, 2022.
During the first quarter of 2023, the Company experienced approximately $22.8 million in loan decline. Centennial CFG experienced $94.6 million of organic loan decline and had loans of $2.18 billion at March 31, 2023. Our remaining footprint experienced $73.9 million in organic loan growth and $2.1 million in PPP loan decline during the quarter.
Non-performing loans to total loans was 0.51% and 0.42% at March 31, 2023 and December 31, 2022, respectively. Non-performing assets to total assets was 0.33% and 0.27% at March 31, 2023 and December 31, 2022, respectively. Net charge-offs were $3.7 million and $4.5 million for the three months ended March 31, 2023 and December 31, 2022, respectively.
Non-performing loans at March 31, 2023 were $11.2 million, $20.0 million, $26.9 million, $390,000, $2.1 million and $13.4 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $74.0 million. Non-performing assets at March 31, 2023 were $11.2 million, $20.2 million, $27.2 million, $390,000, $2.1 million and $13.4 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $74.5 million.



The Company’s allowance for credit losses on loans was $287.2 million at March 31, 2023, or 2.00% of total loans, compared to the allowance for credit losses on loans of $289.7 million, or 2.01% of total loans, at December 31, 2022. As of March 31, 2023 and December 31, 2022, the Company’s allowance for credit losses on loans was 388.23% and 475.99% of its total non-performing loans, respectively.
Stockholders’ equity was $3.63 billion at March 31, 2023, compared to $3.53 billion at December 31, 2022, an increase of approximately $104.5 million. The increase in stockholders’ equity is primarily associated with the $66.3 million increase in retained earnings and the $49.2 million decrease in accumulated other comprehensive loss, which were partially offset by $13.5 million in stock repurchases. Book value per common share was $17.87 at March 31, 2023, compared to $17.33 at December 31, 2022. Tangible book value per common share (non-GAAP) was $10.71(1) at March 31, 2023, compared to $10.17(1) at December 31, 2022.
Office Loan Portfolio Detail

The following charts and graphs provide additional information related to our loan portfolio secured by commercial office space, which represents an aggregate outstanding principal balance of $1.03 billion, or 7.1% of our total loans receivable as of December 31, 2022.

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Branches
The Company currently has 76 branches in Arkansas, 78 branches in Florida, 63 branches in Texas, 5 branches in Alabama and one branch in New York City.




Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 p.m. ET) on Thursday, April 20, 2023. We strongly encourage all participants to pre-register for the conference call webcast or the live call using one of the following links. First, participants can pre-register for the conference call webcast using the following link: https://events.q4inc.com/attendee/775702912. Participants who pre-register will be given a unique webcast link to gain immediate access to the conference call webcast. Second, participants can pre-register for the live call using the following link: https://www.netroadshow.com/events/login?show=a2c2eedd&confId=48539. Participants who pre-register will be given the phone number and unique access codes to gain immediate access to the live call. Participants may pre-register now, or at any time prior to the call, and will immediately receive simple instructions via email. The Home BancShares conference call will also be scheduled as an event in your Outlook calendar.
Those without internet access or unable to pre-register may dial in and listen to the live call by calling 1-833-470-1428, Passcode: 716837. A replay of the call will be available by calling 1-866-813-9403, Passcode: 964704, which will be available until April 27, 2023, at 10:59 p.m. CT (11:59 p.m. ET). Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com.
About Home BancShares
Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, Texas, South Alabama and New York City. The Company’s common stock is traded through the New York Stock Exchange under the symbol “HOMB.” The Company was founded in 1998. Visit www.homebancshares.com or www.my100bank.com for more information.
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.




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




General
This release may contain forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future events, performance or results. When we use words like “may,” “plan,” “propose,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,” “would,” and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risks and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors include, but are not limited to, the following: economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment, including the ongoing impacts of inflation; disruptions, uncertainties and related effects on our business and operations that may result from any future outbreaks of the COVID-19 pandemic, including the impact on, among other things, credit quality and liquidity; the ability to identify, complete and successfully integrate new acquisitions; the risk that expected cost savings and other benefits from acquisitions may not be fully realized or may take longer to realize than expected; diversion of management time on acquisition-related issues; the availability of and access to capital and liquidity on terms acceptable to us; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations; technological changes and cybersecurity risks and incidents; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability, military conflicts and other major domestic or international events; adverse weather events, including hurricanes, and other natural disasters; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; potential increases in deposit insurance assessments, increased regulatory scrutiny or market disruptions resulting from financial challenges in the banking industry; changes in the assumptions used in making the forward-looking statements; and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 24, 2023.

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



Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)
 (In thousands) Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
ASSETS
 Cash and due from banks $250,841 $263,893 $268,929 $287,451 $173,134 
 Interest-bearing deposits with other banks 437,213 460,897 1,311,492 2,528,925 3,446,324 
    Cash and cash equivalents 688,054 724,790 1,580,421 2,816,376 3,619,458 
Federal funds sold— — 2,700 — — 
Investment securities - available-for sale,
     net of allowance for credit losses
3,772,138 4,041,590 4,085,102 3,791,509 2,957,322 
 Investment securities - held-to-maturity,
     net of allowance for credit losses
1,286,373 1,287,705 1,251,007 1,366,781 499,265 
    Total investment securities 5,058,511 5,329,295 5,336,109 5,158,290 3,456,587 
 Loans receivable 14,386,634 14,409,480 13,829,311 13,923,873 10,052,714 
 Allowance for credit losses (287,169)(289,669)(289,203)(294,267)(234,768)
    Loans receivable, net 14,099,465 14,119,811 13,540,108 13,629,606 9,817,946 
 Bank premises and equipment, net 402,094 405,073 411,479 415,056 274,503 
 Foreclosed assets held for sale 425 546 365 373 1,144 
 Cash value of life insurance 214,792 213,693 212,619 211,811 105,623 
 Accrued interest receivable 102,740 103,199 88,671 80,274 46,934 
 Deferred tax asset, net 193,334 209,321 228,979 208,585 116,605 
 Goodwill 1,398,253 1,398,253 1,394,353 1,398,400 973,025 
 Core deposit intangible55,978 58,455 60,932 63,410 23,624 
 Other assets 304,609 321,152 300,634 270,987 182,546 
    Total assets $22,518,255 $22,883,588 $23,157,370 $24,253,168 $18,617,995 
LIABILITIES AND STOCKHOLDERS' EQUITY
 Deposits:
    Demand and non-interest-bearing $4,945,729 $5,164,997 $5,540,539 $6,036,583 $4,311,400 
    Savings and interest-bearing transaction
        accounts
11,392,566 11,730,552 11,968,519 12,424,192 9,461,393 
    Time deposits 1,107,171 1,043,234 1,033,266 1,119,297 808,141 
       Total deposits 17,445,466 17,938,783 18,542,324 19,580,072 14,580,934 
 Securities sold under agreements to repurchase 138,742 131,146 121,555 118,573 151,151 
 FHLB and other borrowed funds 650,000 650,000 400,000 400,000 400,000 
 Accrued interest payable and other liabilities 212,887 196,877 192,908 197,503 131,339 
 Subordinated debentures 440,275 440,420 440,568 458,455 667,868 
    Total liabilities 18,887,370 19,357,226 19,697,355 20,754,603 15,931,292 
 Stockholders' equity
 Common stock 2,032 2,034 2,042 2,053 1,638 
 Capital surplus 2,375,754 2,386,699 2,404,388 2,426,271 1,485,524 
 Retained earnings 1,509,400 1,443,087 1,361,040 1,286,146 1,304,098 
 Accumulated other comprehensive loss(256,301)(305,458)(307,455)(215,905)(104,557)
    Total stockholders' equity 3,630,885 3,526,362 3,460,015 3,498,565 2,686,703 
     Total liabilities and stockholders' equity $22,518,255 $22,883,588 $23,157,370 $24,253,168 $18,617,995 



Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
 Quarter Ended Three Months Ended
(In thousands)Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Mar 31,
2023
Mar 31,
2022
 Interest income:
   Loans $236,997 $221,280 $195,841 $181,779 $129,442 $236,997 $129,442 
   Investment securities
       Taxable 35,288 33,639 28,273 20,941 9,080 35,288 9,080 
       Tax-exempt 7,963 7,855 8,069 7,725 4,707 7,963 4,707 
   Deposits - other banks 4,685 10,109 10,763 6,565 1,673 4,685 1,673 
   Federal funds sold 12 
 Total interest income 284,939 272,895 242,955 217,013 144,903 284,939 144,903 
 Interest expense:
    Interest on deposits 59,162 47,019 23,347 10,729 4,894 59,162 4,894 
    Federal funds purchased — — — — — — 
    FHLB borrowed funds 6,190 5,388 1,917 1,896 1,875 6,190 1,875 
    Securities sold under agreements to
        repurchase
868 701 434 187 108 868 108 
    Subordinated debentures 4,124 4,121 4,153 5,441 6,878 4,124 6,878 
 Total interest expense 70,344 57,229 29,851 18,255 13,755 70,344 13,755 
 Net interest income 214,595 215,666 213,104 198,758 131,148 214,595 131,148 
    Provision for credit losses on loans 1,200 5,000 — 45,170 — 1,200 — 
    Provision for credit losses on unfunded
        commitments
— — — 11,410 — — — 
    Provision for credit losses on investment
        securities
— — — 2,005 — — — 
 Total credit loss expense1,200 5,000 — 58,585 — 1,200 — 
 Net interest income after credit loss expense 213,395 210,666 213,104 140,173 131,148 213,395 131,148 
 Non-interest income:
    Service charges on deposit accounts 9,842 10,134 10,756 10,084 6,140 9,842 6,140 
    Other service charges and fees 11,875 10,363 13,951 12,541 7,733 11,875 7,733 
    Trust fees 4,864 3,981 3,980 4,320 574 4,864 574 
    Mortgage lending income 2,571 3,566 4,179 5,996 3,916 2,571 3,916 
    Insurance commissions 526 453 601 658 480 526 480 
    Increase in cash value of life insurance 1,104 1,079 1,089 1,140 492 1,104 492 
    Dividends from FHLB, FRB, FNBB & other 2,794 2,814 1,741 3,945 698 2,794 698 
    Gain on SBA loans 139 30 58 — 95 139 95 
    Gain (loss) on branches, equipment and other
       assets, net
10 (13)16 16 
    Gain on OREO, net — 13 — 478 — 478 
    Fair value adjustment for marketable
        securities
(11,408)1,032 (2,628)(1,801)2,125 (11,408)2,125 
    Other income 11,850 23,185 9,487 7,687 7,922 11,850 7,922 
 Total non-interest income 34,164 56,660 43,201 44,581 30,669 34,164 30,669 
 Non-interest expense:
    Salaries and employee benefits 64,490 64,249 65,290 65,795 43,551 64,490 43,551 
    Occupancy and equipment 14,952 14,884 15,133 14,256 9,144 14,952 9,144 
    Data processing expense 8,968 9,062 8,747 10,094 7,039 8,968 7,039 
    Merger and acquisition expenses — — — 48,731 863 — 863 
    Other operating expenses 26,234 30,708 25,176 26,606 16,299 26,234 16,299 
 Total non-interest expense 114,644 118,903 114,346 165,482 76,896 114,644 76,896 
 Income before income taxes 132,915 148,423 141,959 19,272 84,921 132,915 84,921 
    Income tax expense29,953 32,736 33,254 3,294 20,029 29,953 20,029 
 Net income $102,962 $115,687 $108,705 $15,978 $64,892 $102,962 $64,892 



Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter EndedThree Months Ended
(Dollars and shares in thousands, except per share data)Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Mar 31, 2023Mar 31, 2022
PER SHARE DATA
Diluted earnings per common share$0.51$0.57$0.53$0.08$0.40$0.51$0.40
Diluted earnings per common share, as adjusted
    (non-GAAP)(1)
0.540.530.540.470.370.540.37
Basic earnings per common share0.510.570.530.080.400.510.40
Dividends per share - common0.1800.1650.1650.1650.1650.180.165
Book value per common share17.8717.3316.9417.0416.4117.8716.41
Tangible book value per common share
     (non-GAAP)(1)
10.7110.179.829.9210.3210.7110.32
STOCK INFORMATION
Average common shares outstanding203,456203,924204,829205,683163,787203,456163,787
Average diluted shares outstanding203,625204,179205,135206,015164,196203,625164,196
End of period common shares outstanding203,168203,434204,219205,291163,758203,168163,758
ANNUALIZED PERFORMANCE METRICS
Return on average assets (ROA)1.84 %1.98 %1.81 %0.26 %1.43 %1.84 %1.43 %
Return on average assets, as adjusted:
     (ROA, as adjusted) (non-GAAP)(1)
1.95 1.84 1.83 1.57 1.36 1.95 1.36 
Return on average assets excluding intangible
     amortization (non-GAAP)(1)
2.00 2.15 1.97 0.31 1.54 2.00 1.54 
Return on average assets, as adjusted, excluding
     intangible amortization (non-GAAP)(1)
2.12 2.00 1.99 1.70 1.46 2.12 1.46 
Return on average common equity (ROE)11.70 13.29 12.25 1.78 9.58 11.70 9.58 
Return on average common equity, as adjusted:
     (ROE, as adjusted) (non-GAAP)(1)
12.38 12.35 12.39 10.83 9.09 12.38 9.09 
Return on average tangible common equity
     (ROTCE) (non-GAAP)(1)
19.75 22.96 20.93 2.96 15.03 19.75 15.03 
Return on average tangible common equity, as adjusted:
     (ROTCE, as adjusted) (non-GAAP)(1)
20.90 21.33 21.16 17.94 14.26 20.90 14.26 
Return on average tangible common equity excluding
     intangible amortization (non-GAAP)(1)
20.11 23.33 21.29 3.30 15.28 20.11 15.28 
Return on average tangible common equity, as adjusted,
     excluding intangible amortization (non-GAAP)(1)
21.26 21.70 21.52 18.29 14.50 21.26 14.50 
(1)  Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.



Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter EndedThree Months Ended
(Dollars in thousands)Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Mar 31, 2023Mar 31, 2022
Efficiency ratio44.80 %42.44 %43.24 %66.31 %46.15 %44.80 %46.15 %
Efficiency ratio, as adjusted (non-GAAP)(1)
43.42 43.07 42.97 46.02 47.33 43.42 47.33 
Net interest margin - FTE (NIM)4.37 4.21 4.05 3.64 3.21 4.37 3.21 
Fully taxable equivalent adjustment$1,628$2,017$2,437$2,471$1,738$1,628$1,738
Total revenue (net)248,759272,326256,305243,339161,817248,759161,817
Pre-tax, pre-provision, net income (PPNR)
     (non-GAAP)(1)
134,115153,423141,95977,85784,921134,11584,921
PPNR, as adjusted (non-GAAP)(1)
142,062142,567143,522126,68380,371142,06280,371
Pre-tax net income to total revenue (net)53.43 %54.50 %55.39 %7.92 %52.48 %53.43 %52.48 %
Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1)
56.63 50.52 56.00 52.06 49.67 56.63 49.67 
P5NR ((Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)
53.91 56.34 55.39 32.00 52.48 53.91 52.48 
P5NR, as adjusted (non-GAAP)(1)
57.11 52.35 56.00 52.06 49.67 57.11 49.67 
Total purchase accounting accretion$3,172$3,497$4,578$5,177$3,089$3,172$3,089
Average purchase accounting loan discounts35,48238,55242,05046,25825,35935,48225,359
OTHER OPERATING EXPENSES
Hurricane expense$$176$$$$$
Advertising2,2312,5672,0242,1171,2662,2311,266
Amortization of intangibles2,4772,4782,4772,4771,4212,4771,421
Electronic banking expense3,3303,9143,8283,3522,5383,3302,538
Directors' fees460358354375404460404
Due from bank service charges273273316396270273270
FDIC and state assessment3,5002,2242,1462,3901,6683,5001,668
Insurance8891,003959973770889770
Legal and accounting1,0885,9621,5811,0617971,088797
Other professional fees2,2842,5522,4662,2541,6092,2841,609
Operating supplies738690681995754738754
Postage501602614556306501306
Telephone528576593384337528337
Other expense7,9357,3337,1379,2764,1597,9354,159
        Total other operating expenses $26,234$30,708$25,176$26,606$16,299$26,234$16,299
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.



Home BancShares, Inc.
Selected Financial Information
(Unaudited)
(Dollars in thousands)Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
BALANCE SHEET RATIOS
Total loans to total deposits82.47 %80.33 %74.58 %71.11 %68.94 %
Common equity to assets16.12 15.41 14.94 14.43 14.43 
Tangible common equity to tangible assets
     (non-GAAP)(1)
10.33 9.66 9.24 8.94 9.59 
LOANS RECEIVABLE
Real estate
Commercial real estate loans
     Non-farm/non-residential$5,524,125$5,632,063$5,156,438$5,092,539$3,810,383
Construction/land development2,160,5142,135,2662,232,9062,595,3841,856,096
Agricultural342,814346,811330,748329,106142,920
Residential real estate loans
Residential 1-4 family1,748,2311,748,5511,704,8501,708,2211,223,890
Multifamily residential637,633578,052525,110389,633248,650
Total real estate10,413,31710,440,7439,950,05210,114,8837,281,939
Consumer1,173,3251,149,8961,120,2501,106,3431,059,342
Commercial and industrial2,368,4282,349,2632,268,7502,187,7711,510,205
Agricultural250,851285,235313,693324,63048,095
Other180,713184,343176,566190,246153,133
Loans receivable$14,386,634$14,409,480$13,829,311$13,923,873$10,052,714
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period$289,669$289,203$294,267$234,768$236,714
Allowance for credit losses on PCD loans -
    Happy acquisition
16,816
Loans charged off4,2885,3796,3133,2652,310
Recoveries of loans previously charged off5888451,249778364
Net loans charged off3,7004,5345,0642,4871,946
Provision for credit losses - Happy acquisition45,170
Provision for credit losses - loans 1,2005,000
Balance, end of period$287,169$289,669$289,203$294,267$234,768
Net charge-offs to average total loans0.10 %0.13 %0.15 %0.07 %0.08 %
Allowance for credit losses to total loans2.00 2.01 2.09 2.11 2.34 
NON-PERFORMING ASSETS
Non-performing loans
Non-accrual loans$65,401$51,011$56,796$44,170$44,629
Loans past due 90 days or more8,5679,8454,89816,43246
Total non-performing loans73,96860,85661,69460,60244,675
Other non-performing assets
Foreclosed assets held for sale, net4255463653731,144
Other non-performing assets7474104104
Total other non-performing assets4996204694771,144
Total non-performing assets$74,467$61,476$62,163$61,079$45,819
Allowance for credit losses for loans to non-performing loans388.23 %475.99 %468.77 %485.57 %525.50 %
Non-performing loans to total loans0.51 0.42 0.45 0.44 0.44 
Non-performing assets to total assets0.33 0.27 0.27 0.25 0.25 
(1) Calculation of this metric and the reconciliation to GAAP is included in the schedules accompanying this release.



Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
March 31, 2023December 31, 2022
(Dollars in thousands)Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
ASSETS
Earning assets
Interest-bearing balances due from banks$426,051 $4,685 4.46 %$1,094,144 $10,109 3.67 %
Federal funds sold474 5.13 1,300 12 3.66 
Investment securities - taxable3,867,737 35,288 3.70 4,002,678 33,639 3.33 
Investment securities - non-taxable - FTE1,289,564 9,482 2.98 1,294,096 9,653 2.96 
Loans receivable - FTE14,474,072 237,106 6.64 14,109,329 221,499 6.23 
Total interest-earning assets20,057,898 286,567 5.79 20,501,547 274,912 5.32 
Non-earning assets2,637,957 2,685,458 
Total assets$22,695,855 $23,187,005 
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts$11,579,329 $54,857 1.92 %$11,818,158 $45,029 1.51 %
Time deposits1,072,094 4,305 1.63 1,027,765 1,990 0.77 
Total interest-bearing deposits12,651,423 59,162 1.90 12,845,923 47,019 1.45 
     Securities sold under agreement to
         repurchase
134,934 868 2.61 128,798 701 2.16 
     FHLB borrowed funds651,111 6,190 3.86 692,935 5,388 3.08 
     Subordinated debentures440,346 4,124 3.80 440,492 4,121 3.71 
    Total interest-bearing liabilities13,877,814 70,344 2.06 14,108,148 57,229 1.61 
Non-interest bearing liabilities
Non-interest bearing deposits5,043,219 5,423,821 
Other liabilities205,230 201,031 
Total liabilities19,126,263 19,733,000 
Shareholders' equity3,569,592 3,454,005 
Total liabilities and shareholders' equity$22,695,855 $23,187,005 
Net interest spread3.73 %3.71 %
Net interest income and margin - FTE$216,223 4.37 $217,683 4.21 



Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
March 31, 2023March 31, 2022
(Dollars in thousands)Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
ASSETS
Earning assets
Interest-bearing balances due from banks$426,051 $4,685 4.46 %$3,497,894 $1,673 0.19 %
Federal funds sold474 5.13 1,751 0.23 
Investment securities - taxable3,867,737 35,288 3.70 2,486,401 9,080 1.48 
Investment securities - non-taxable - FTE1,289,564 9,482 2.98 850,722 6,284 3.00 
Loans receivable - FTE14,474,072 237,106 6.64 9,937,993 129,603 5.29 
Total interest-earning assets20,057,898 286,567 5.79 16,774,761 146,641 3.55 
Non-earning assets2,637,957 1,618,314 
Total assets$22,695,855 $18,393,075 
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts$11,579,329 $54,857 1.92 %$9,363,793 $3,873 0.17 %
Time deposits1,072,094 4,305 1.63 854,593 1,021 0.48 
Total interest-bearing deposits12,651,423 59,162 1.90 10,218,386 4,894 0.19 
     Securities sold under agreement to
         repurchase
134,934 868 2.61 137,565 108 0.32 
     FHLB borrowed funds651,111 6,190 3.86 400,000 1,875 1.90 
     Subordinated debentures440,346 4,124 3.80 611,888 6,878 4.56 
    Total interest-bearing liabilities13,877,814 70,344 2.06 11,367,839 13,755 0.49 
Non-interest bearing liabilities
Non-interest bearing deposits5,043,219 4,155,894 
Other liabilities205,230 121,362 
Total liabilities19,126,263 15,645,095 
Shareholders' equity3,569,592 2,747,980 
Total liabilities and shareholders' equity$22,695,855 $18,393,075 
Net interest spread3.73 %3.06 %
Net interest income and margin - FTE$216,223 4.37 $132,886 3.21 



Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
 Quarter EndedThree Months Ended
(Dollars and shares in thousands,
except per share data)
Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Mar 31,
2023
Mar 31,
2022
EARNINGS, AS ADJUSTED
GAAP net income available to common shareholders (A)$102,962$115,687$108,705$15,978$64,892$102,962$64,892
Pre-tax adjustments
Merger and acquisition expenses48,731863863
Initial provision for credit losses - acquisition58,585
Fair value adjustment for marketable securities11,408(1,032)2,6281,801(2,125)11,408(2,125)
Special dividend from equity investment(1,434)
TRUPS redemption fees2,081
Special lawsuit settlement, net of expense(10,000)
Recoveries on historic losses(3,461)(1,065)(2,353)(3,288)(3,461)(3,288)
Hurricane expense176
Total pre-tax adjustments7,947(10,856)1,563107,411(4,550)7,947(4,550)
Tax-effect of adjustments1,961(2,679)39326,396(1,220)1,961(1,220)
Total adjustments after-tax (B)5,986(8,177)1,17081,015(3,330)5,986(3,330)
Earnings, as adjusted (C)$108,948$107,510$109,875$96,993$61,562$108,948$61,562
Average diluted shares outstanding (D)203,625204,179205,135206,015164,196203,625164,196
GAAP diluted earnings per share: (A/D)$0.51$0.57$0.53$0.08$0.40$0.51$0.40
Adjustments after-tax: (B/D)0.03(0.04)0.010.39(0.03)0.03(0.03)
Diluted earnings per common share, as adjusted: (C/D)$0.54$0.53$0.54$0.47$0.37$0.54$0.37
ANNUALIZED RETURN ON AVERAGE ASSETS
Return on average assets: (A/E)1.84 %1.98 %1.81 %0.26 %1.43 %1.84 %1.43 %
Return on average assets, as adjusted: (ROA, as adjusted) ((A+D)/E)1.95 1.84 1.83 1.57 1.36 1.95 1.36 
Return on average assets excluding intangible amortization: ((A+C)/(E-F))2.00 2.15 1.97 0.31 1.54 2.00 1.54 
Return on average assets, as adjusted, excluding intangible amortization: ((A+C+D)/(E-F))2.12 2.00 1.99 1.70 1.46 2.12 1.46 
GAAP net income available to common shareholders (A)$102,962$115,687$108,705$15,978$64,892$102,962$64,892
Amortization of intangibles (B)2,4772,4782,4772,4771,4212,4771,421
Amortization of intangibles after-tax (C)1,8661,8671,8541,8541,0491,8661,049
Adjustments after-tax (D)5,986(8,177)1,17081,015(3,330)5,986(3,330)
Average assets (E)22,695,85523,187,00523,778,76924,788,36518,393,07522,695,85518,393,075
Average goodwill & core deposit intangible (F)1,455,4231,454,6391,459,0341,423,466997,3381,455,423997,338



Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
 Quarter EndedThree Months Ended
(Dollars in thousands)Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Mar 31,
2023
Mar 31,
2022
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY
Return on average common equity: (A/D)11.70 %13.29 %12.25 %1.78 %9.58 %11.70 %9.58 %
Return on average common equity, as adjusted: (ROE, as adjusted) ((A+C)/D)12.38 12.35 12.39 10.83 9.09 12.38 9.09 
Return on average tangible common equity:
    (A/(D-E))
19.75 22.96 20.93 2.96 15.03 19.75 15.03 
Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) ((A+C)/(D-E))20.90 21.33 21.16 17.94 14.26 20.90 14.26 
Return on average tangible common equity excluding intangible amortization: (B/(D-E))20.11 23.33 21.29 3.30 15.28 20.11 15.28 
Return on average tangible common equity, as adjusted, excluding intangible amortization: ((B+C)/(D-E))21.26 21.70 21.52 18.29 14.50 21.26 14.50 
GAAP net income available to common shareholders (A)$102,962$115,687$108,705$15,978$64,892$102,962$64,892
Earnings excluding intangible amortization (B)104,828117,554110,55917,83265,941104,82865,941
Adjustments after-tax (C)5,986(8,177)1,17081,015(3,330)5,986(3,330)
Average common equity (D)3,569,5923,454,0053,519,2963,591,7582,747,9803,569,5922,747,980
Average goodwill & core deposits intangible (E)1,455,4231,454,6391,459,0341,423,466997,3381,455,423997,338
EFFICIENCY RATIO & P5NR
Efficiency ratio: ((D-H)/(B+C+E))44.80 %42.44 %43.24 %66.31 %46.15 %44.80 %46.15 %
Efficiency ratio, as adjusted: ((D-H-J)/(B+C+E-I))43.42 43.07 42.97 46.02 47.33 43.42 47.33 
Pre-tax net income to total revenue (net) (A/(B+C))53.43 54.50 55.39 7.92 52.48 53.43 52.48 
Pre-tax net income, as adjusted, to total revenue (net) ((A+F)/(B+C))56.63 50.52 56.00 52.06 49.67 56.63 49.67 
Pre-tax, pre-provision, net income (PPNR) (B+C-D)$134,115$153,423$141,959$77,857$84,921$134,115$84,921
Pre-tax, pre-provision, net income, as adjusted (B+C-D+F-G)142,062142,567143,522126,68380,371142,06280,371
P5NR ((Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C)
53.91 %56.34 %55.39 %32.00 %52.48 %53.91 %52.48 %
P5NR, as adjusted (B+C-D+F-G)/(B+C)
57.11 52.35 56.00 52.06 49.67 57.11 49.67 
Pre-tax net income (A)$132,915$148,423$141,959$19,272$84,921$132,915$84,921
Net interest income (B)214,595215,666213,104198,758131,148214,595131,148
Non-interest income (C)34,16456,66043,20144,58130,66934,16430,669
Non-interest expense (D)114,644118,903114,346165,48276,896114,64476,896
Fully taxable equivalent adjustment (E)1,6282,0172,4372,4711,7381,6281,738
Total pre-tax adjustments (F)7,947(10,856)1,563107,411(4,550)7,947(4,550)
Initial provision for credit losses - acquisition (G)58,585
Amortization of intangibles (H)2,4772,4782,4772,4771,4212,4771,421
Adjustments:
Non-interest income:
Fair value adjustment for marketable securities$(11,408)$1,032$(2,628)$(1,801)$2,125$(11,408)$2,125
Gain on OREO139478478
Gain (loss) on branches, equipment and other assets, net710(13)216716
Special dividend from equity investment1,434
Lawsuit settlement - special lawsuit15,000
Recoveries on historic losses3,4611,0652,3533,2883,4613,288
Total non-interest income adjustments (I)$(7,940)$16,055$(1,576)$1,997$5,907$(7,940)$5,907
Non-interest expense:
Merger and acquisition expenses48,731863863
Hurricane expense176
Legal expense - special lawsuit5,000
TRUPS redemption fees2,081
Total non-interest expense adjustments (J)$$5,176$$50,812$863$$863



Home BancShares, Inc.
Non-GAAP Reconciliations
(Unaudited)
Quarter Ended
Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
TANGIBLE BOOK VALUE PER COMMON SHARE
Book value per common share: (A/B)$17.87$17.33$16.94$17.04$16.41
Tangible book value per common share: ((A-C-D)/B)10.7110.179.829.9210.32
Total stockholders' equity (A)$3,630,885$3,526,362$3,460,015$3,498,565$2,686,703
End of period common shares outstanding (B)203,168203,434204,219205,291163,758
Goodwill (C)1,398,2531,398,2531,394,3531,398,400973,025
Core deposit and other intangibles (D)55,97858,45560,93263,41023,624
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
Equity to assets: (B/A)16.12 %15.41 %14.94 %14.43 %14.43 %
Tangible common equity to tangible assets: ((B-C-D)/(A-C-D))10.33 9.66 9.24 8.94 9.59 
Total assets (A)$22,518,255$22,883,588$23,157,370$24,253,168$18,617,995
Total stockholders' equity (B)3,630,8853,526,3623,460,0153,498,5652,686,703
Goodwill (C)1,398,2531,398,2531,394,3531,398,400973,025
Core deposit and other intangibles (D)55,97858,45560,93263,41023,624