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HOMB’s Safe Harbor: Patience, Liquidity, Asset Quality, Capital, Reserves and Net Interest Margin Result in Record Setting Quarterly Revenue
来源: Nasdaq GlobeNewswire / 21 7月 2022 08:15:01 America/New_York
CONWAY, Ark., July 21, 2022 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NYSE: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.
Highlights of the Second Quarter of 2022:
Metric Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Net income $16.0 million $64.9 million $73.4 million $75.0 million $79.1 million Net income, as adjusted (non-GAAP)(1) $97.0 million $61.6 million $74.0 million $74.3 million $76.5 million Total revenue (net) $243.3 million $161.8 million $171.0 million $173.8 million $172.4 million Income before income taxes $19.3 million $84.9 million $93.9 million $98.2 million $104.1 million Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) $77.9 million $84.9 million $93.9 million $98.2 million $99.4 million PPNR, as adjusted (non-GAAP)(1) $126.7 million $80.4 million $94.7 million $96.9 million $95.9 million Pre-tax net income to total revenue (net) 7.92% 52.48% 54.94% 56.50% 60.42% Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1) 52.06% 49.67% 55.40% 55.76% 58.42% P5NR (Pre-tax, pre-provision, profit percentage)
(PPNR to total revenue (net)) (non-GAAP)(1)32.00% 52.48% 54.94% 56.50% 57.66% P5NR, as adjusted (non-GAAP)(1) 52.06% 49.67% 55.40% 55.76% 55.66% ROA 0.26% 1.43% 1.62% 1.68% 1.81% ROA, as adjusted (non-GAAP)(1) 1.57% 1.36% 1.64% 1.67% 1.75% NIM 3.64% 3.21% 3.42% 3.60% 3.61% Purchase accounting accretion $5.2 million $3.1 million $4.0 million $4.9 million $5.8 million ROE 1.78% 9.58% 10.63% 10.97% 11.92% ROE, as adjusted (non-GAAP)(1) 10.83% 9.09% 10.72% 10.87% 11.54% ROTCE (non-GAAP)(1) 2.96% 15.03% 16.73% 17.39% 19.12% ROTCE, as adjusted (non-GAAP)(1) 17.94% 14.26% 16.87% 17.23% 18.50% Diluted earnings per share $0.08 $0.40 $0.45 $0.46 $0.48 Diluted earnings per share, as adjusted $0.47 $0.37 $0.45 $0.45 $0.46 Non-performing assets to total assets 0.25% 0.25% 0.29% 0.29% 0.35% Common equity tier 1 capital 12.8% 14.9% 15.4% 15.2% 15.0% Leverage 9.8% 10.8% 11.1% 11.0% 10.9% Tier 1 capital 12.9% 15.5% 16.0% 15.8% 15.6% Total risk-based capital 16.6% 21.6% 19.8% 19.6% 19.5% Allowance for credit losses to total loans 2.11% 2.34% 2.41% 2.41% 2.36% (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
“Patience is not just the ability to wait; it’s what you do while you’re waiting. We have remained disciplined and implemented our defensive initiatives: not making low rate loans, not deploying all of our cash in low rate securities, paying off debt and managing our loan to deposit ratio, among other things. As it appears, the pendulum is about to swing back toward defensive stocks from growth stocks, and when it does, HOMB is sitting in the catbird seat,” said John Allison, Chairman.
“It was a very busy quarter, and I’m very pleased with the operating results. We are much farther ahead than I thought we would be after only one full quarter of the combined company. We expected a $100 million run rate for Happy by the second or third quarter of 2023, so this moves the ball down the field even quicker than we had hoped,” said Tracy French, Centennial Bank President and Chief Executive Officer.
Operating Highlights
Net income for the three-month period ended June 30, 2022 was $16.0 million, or $0.08 earnings per share. Net income for the six-month period ended June 30, 2022 was $80.9 million, or 0.44 earnings per share. However, when adjusting for merger related and other non-fundamental items, net income, as adjusted, (non-GAAP) was $97.0 million(1), or $0.47 earnings per share(1), and $158.6 million(1), or $0.86 earnings per share(1), for the three-month and six-month periods ended June 30, 2022, respectively.
During the second quarter of 2022, the Company completed its previously announced acquisition of Happy Bancshares, Inc. (“Happy”). As a result of the acquisition of Happy, which we completed on April 1, 2022, the Company recorded a $45.2 million provision for credit losses on loans for the CECL “double count,” an $11.4 million provision for credit losses on unfunded commitments, a $2.0 million provision for credit losses on investment securities held-to-maturity and incurred $48.7 million in merger expenses. 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.
Our net interest margin was 3.64% for the three-month period ended June 30, 2022 compared to 3.21% for the three-month period ended March 31, 2022. The yield on loans was 5.27% and 5.29% for the three months ended June 30, 2022 and March 31, 2022, respectively, as average loans increased from $9.94 billion to $13.84 billion. Additionally, the rate on interest bearing deposits increased to 0.31% as of June 30, 2022 from 0.19% as of March 31, 2022, as average balances increased from $10.22 billion to $13.80 billion.
During the second quarter of 2022, there was $602,000 of event interest income compared to event interest income of $1.4 million for the first quarter of 2022. The reduction in event income reduced the net interest margin by one basis point for the three-month period ended June 30, 2022.
Purchase accounting accretion on acquired loans was $5.2 million and $3.1 million and average purchase accounting loan discounts were $48.4 million and $25.4 million for the three-month periods ended June 30, 2022 and March 31, 2022, respectively. The increase in accretion income increased the net interest margin by 4 basis points for the three-month period ended June 30, 2022.
Net interest income on a fully taxable equivalent basis was $201.2 million for the three-month period ended June 30, 2022 and $132.9 million for the three-month period ended March 31, 2022. This increase in net interest income for the three-month period ended June 30, 2022 was the result of a $72.8 million increase in interest income partially offset by a $4.5 million increase in interest expense. The $72.8 million increase in interest income was primarily the result of a $52.3 million increase in loan interest income and a $15.6 million increase in investment income resulting from the acquisition of Happy during the quarter as well as the rising interest rate environment. The $4.5 million increase in interest expense was due to a $5.8 million increase in interest expense on deposits, which was partially offset by a $1.4 decrease in interest expense on subordinated debentures. The increase in interest expense on deposits is a result of the acquisition of Happy during the quarter as well as the rising rate environment. The decrease in interest expense on subordinated debentures is primarily the result of the Company paying off $300.0 million of subordinated debentures with a 5.265% rate on April 15, 2022 and issuing $300.0 million of new subordinated debt with a rate of 3.125% on January 18, 2022. In addition, the Company redeemed $78.9 million of trust preferred securities (“TRUPS”) during the quarter. The reduction in subordinated debt and the related interest expense was accretive to the net interest margin by 3 basis points.
The Company reported $44.6 million of non-interest income for the second quarter of 2022. The most important components of the second quarter non-interest income were $12.5 million from other service charges and fees, $10.1 million from service charges on deposit accounts, $6.0 million in mortgage lending income, $7.7 million from other income, $3.9 million from dividends from FHLB, FRB, FNBB and other, $4.3 million from trust fees, $1.1 million increase in cash value of life insurance, and $658,000 from insurance commissions. These amounts were partially offset by a $1.8 million loss from the fair value adjustment for marketable securities. The $3.9 million from dividends from FHLB, FRB, FNBB and other includes $1.4 million in special dividends. The $7.7 million in other income includes $2.4 million in recoveries on historic losses of loans acquired that were written off prior to acquisition.
Non-interest expense for the second quarter of 2022 was $165.5 million. The most important components of the second quarter non-interest expense were $65.8 million from salaries and employee benefits, $48.7 million in merger and acquisition expenses, $26.6 million in other expense, $14.3 million in occupancy and equipment expenses and $10.1 million in data processing expenses. Included within non-interest expense was $2.1 million in TRUPS redemption fees. For the second quarter of 2022, our efficiency ratio was 66.31%; however, our efficiency ratio, as adjusted (non-GAAP) was 46.02%(1).
Financial Condition
Total loans receivable were $13.92 billion at June 30, 2022 compared to $10.05 billion at March 31, 2022. Total deposits were $19.58 billion at June 30, 2022 compared to $14.58 billion at March 31, 2022. Total assets were $24.25 billion at June 30, 2022 compared to $18.62 billion at March 31, 2022.
During the second quarter of 2022, the Company experienced approximately $3.87 billion in loan growth. During the quarter we acquired $3.65 billion of loans, net of purchase accounting discounts, from Happy. Centennial CFG experienced $273.0 million of organic loan growth and had loans of $2.42 billion at June 30, 2022. Our legacy footprint experienced $20.1 million in organic loan growth and $74.6 million in PPP loan decline during the quarter.
Non-performing loans to total loans was 0.44% at both June 30, 2022 and March 31, 2022, respectively. Non-performing assets to total assets was 0.25% at both June 30, 2022 and March 31, 2022, respectively. Net charge-offs were $2.5 million and $1.9 million for the three months ended June 30, 2022 and March 31, 2022, 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, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $60.6 million. Non-performing assets at June 30, 2022 were $15.0 million, $33.6 million, $5.7 million, $813,000, $1.3 million and $4.7 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $61.1 million.
The Company’s allowance for credit losses on loans was $294.3 million at June 30, 2022, or 2.11% of total loans, compared to the allowance for credit losses of $234.8 million, or 2.34% of total loans, at March 31, 2022. The increase in the allowance was primarily due to the Company recording a $16.8 million allowance on purchase credit deteriorated loans and a $45.2 million provision for credit losses on acquired loans as part of the Happy acquisition which was partially offset by $2.5 million in net charge-offs for the quarter ended June 30, 2022. The Company’s allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.12%(1) and 2.35%(1) at June 30, 2022 and March 31, 2022, respectively. As of June 30, 2022 and March 31, 2022, the Company’s allowance for credit losses on loans was 485.57% and 525.50% of its total non-performing loans, respectively.
Stockholders’ equity was $3.50 billion at June 30, 2022 compared to $2.69 billion at March 31, 2022, an increase of approximately $811.9 million. The increase in stockholders’ equity is primarily associated with the $961.3 million of common stock, net of issuance costs, issued to the Happy shareholders which was partially offset by a $111.3 million increase in accumulated other comprehensive loss, net stock repurchases and share-based compensation activity of $20.1 million and an $18.0 million decrease in retained earnings. Book value per common share was $17.04 at June 30, 2022 compared to $16.41 at March 31, 2022. Tangible book value per common share (non-GAAP) was $9.92(1) at June 30, 2022 compared to $10.32(1) at March 31, 2022.
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
Branches
The Company currently has 76 branches in Arkansas, 78 branches in Florida, 62 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 ET) on Thursday, July 21, 2022. We strongly encourage all participants to pre-register for the conference call webcast or the live call using one of the following links. First, participants can pre-register for the conference call webcast using the following link: https://events.q4inc.com/attendee/373803075. 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://ige.netroadshow.com/registration/q4inc/11147/home-bancshares-inc-2nd-quarter-earnings-call/. Participants who pre-register will be given the phone number and unique access codes to gain immediate access to the live call. Participants may pre-register now, or at any time prior to the call, and will immediately receive simple instructions via email. The Home BancShares conference call will also be automatically scheduled as an event in your Outlook calendar.
Those without internet access or unable to pre-register may dial in and listen to the live call by calling 1-844-200-6205, Passcode: 478807. A replay of the call will be available by calling 1-866-813-9403, Passcode: 165968, which will be available until July 28, 2022, 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.
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); 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 assets excluding excess liquidity; return on average assets, as adjusted, excluding excess liquidity; 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; allowance for credit losses to total loans, excluding PPP loans; tangible book value per common share and tangible common equity to tangible assets--to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions (including the effect of the PPP loans) that management believes are not indicative of the Company’s primary business operating results. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
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 risk and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors include, but are not limited to, the following: economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment; disruptions, uncertainties and related effects on our business and operations as a result of the ongoing coronavirus (COVID-19) pandemic and measures that have been or may be implemented or imposed in response to the pandemic, including the impact on, among other things, credit quality and liquidity; the risk that the benefits from the acquisition of Happy may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, ongoing or future effects of the COVID-19 pandemic, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Home and Happy operate; the ability to promptly and effectively integrate the businesses of Home and Happy; the reaction to the transaction of the companies’ customers, employees and counterparties; diversion of management time on acquisition-related issues; the effect of any future mergers, acquisitions or other transactions to which we or our bank subsidiary may from time to time be a party, including as a result of one or more of the factors described above as they would relate to such transaction; the ability to identify, enter into and/or close additional acquisitions; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations, including those in response to the COVID-19 pandemic; technological changes and cybersecurity risks; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; changes in the assumptions used in making the forward-looking statements; and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 24, 2022.
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) Jun. 30, 2022 Mar. 31, 2022 Dec. 31, 2021 Sep. 30, 2021 Jun. 30, 2021 ASSETS Cash and due from banks $ 287,451 $ 173,134 $ 119,908 $ 146,378 $ 182,226 Interest-bearing deposits with other banks 2,528,925 3,446,324 3,530,407 3,133,878 2,759,027 Cash and cash equivalents 2,816,376 3,619,458 3,650,315 3,280,256 2,941,253 Investment securities - available-for sale, net of allowance for credit losses 3,791,509 2,957,322 3,119,807 3,150,608 3,053,712 Investment securities - held-to-maturity, net of allowance for credit losses 1,366,781 499,265 - - - Total investment securities 5,158,290 3,456,587 3,119,807 3,150,608 3,053,712 Loans receivable 13,923,873 10,052,714 9,836,089 9,901,100 10,199,175 Allowance for credit losses (294,267 ) (234,768 ) (236,714 ) (238,673 ) (240,451 ) Loans receivable, net 13,629,606 9,817,946 9,599,375 9,662,427 9,958,724 Bank premises and equipment, net 415,056 274,503 275,760 276,972 278,502 Foreclosed assets held for sale 373 1,144 1,630 1,171 1,969 Cash value of life insurance 211,811 105,623 105,135 104,638 104,132 Accrued interest receivable 80,274 46,934 46,736 48,577 48,725 Deferred tax asset, net 208,585 116,605 78,290 69,724 72,273 Goodwill 1,398,400 973,025 973,025 973,025 973,025 Core deposit and other intangibles 63,410 23,624 25,045 26,466 27,886 Other assets 270,987 182,546 177,020 171,192 166,991 Total assets $ 24,253,168 $ 18,617,995 $ 18,052,138 $ 17,765,056 $ 17,627,192 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Demand and non-interest-bearing $ 6,036,583 $ 4,311,400 $ 4,127,878 $ 4,139,149 $ 4,076,570 Savings and interest-bearing transaction accounts 12,424,192 9,461,393 9,251,805 8,813,326 8,744,900 Time deposits 1,119,297 808,141 880,887 1,050,896 1,069,871 Total deposits 19,580,072 14,580,934 14,260,570 14,003,371 13,891,341 Securities sold under agreements to repurchase 118,573 151,151 140,886 141,002 150,540 FHLB and other borrowed funds 400,000 400,000 400,000 400,000 400,000 Accrued interest payable and other liabilities 197,503 131,339 113,868 113,721 118,415 Subordinated debentures 458,455 667,868 371,093 370,900 370,707 Total liabilities 20,754,603 15,931,292 15,286,417 15,028,994 14,931,003 Stockholders' equity Common stock 2,053 1,638 1,637 1,640 1,645 Capital surplus 2,426,271 1,485,524 1,487,373 1,492,588 1,501,615 Retained earnings 1,286,146 1,304,098 1,266,249 1,215,831 1,163,810 Accumulated other comprehensive (loss) income (215,905 ) (104,557 ) 10,462 26,003 29,119 Total stockholders' equity 3,498,565 2,686,703 2,765,721 2,736,062 2,696,189 Total liabilities and stockholders' equity $ 24,253,168 $ 18,617,995 $ 18,052,138 $ 17,765,056 $ 17,627,192 Home BancShares, Inc. Consolidated Statements of Income (Unaudited) Quarter Ended Six Months Ended (In thousands) Jun. 30, 2022 Mar. 31, 2022 Dec. 31, 2021 Sep. 30, 2021 Jun. 30, 2021 Jun. 30, 2022 Jun. 30, 2021 Interest income: Loans $ 181,779 $ 129,442 $ 136,750 $ 142,609 $ 141,684 $ 311,221 $ 292,601 Investment securities Taxable 20,941 9,080 8,121 8,495 7,185 30,021 13,438 Tax-exempt 7,725 4,707 4,827 4,839 4,905 12,432 9,976 Deposits - other banks 6,565 1,673 1,281 1,117 707 8,238 1,117 Federal funds sold 3 1 - - - 4 - Total interest income 217,013 144,903 150,979 157,060 154,481 361,916 317,132 Interest expense: Interest on deposits 10,729 4,894 5,155 5,642 6,434 15,623 14,139 Federal funds purchased 2 - - - - 2 - FHLB borrowed funds 1,896 1,875 1,916 1,917 1,896 3,771 3,771 Securities sold under agreements to repurchase 187 108 98 102 107 295 297 Subordinated debentures 5,441 6,878 4,790 4,788 4,792 12,319 9,585 Total interest expense 18,255 13,755 11,959 12,449 13,229 32,010 27,792 Net interest income 198,758 131,148 139,020 144,611 141,252 329,906 289,340 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 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) 140,173 131,148 139,020 144,611 146,004 271,321 294,092 Non-interest income: Service charges on deposit accounts 10,084 6,140 6,217 5,941 5,116 16,224 10,118 Other service charges and fees 12,541 7,733 11,133 8,051 9,659 20,274 17,267 Trust fees 4,320 574 515 479 444 4,894 966 Mortgage lending income 5,996 3,916 5,359 5,948 6,202 9,912 14,369 Insurance commissions 658 480 387 586 478 1,138 970 Increase in cash value of life insurance 1,140 492 501 509 537 1,632 1,039 Dividends from FHLB, FRB, FNBB & other 3,945 698 919 2,661 2,646 4,643 11,255 Gain on SBA loans - 95 792 439 1,149 95 1,149 Gain (loss) on branches, equipment and other assets, net 2 16 (19 ) (34 ) (23 ) 18 (52 ) Gain on OREO, net 9 478 737 246 619 487 1,020 Gain on securities, net - - - - - - 219 Fair value adjustment for marketable securities (1,801 ) 2,125 85 61 1,250 324 7,032 Other income 7,687 7,922 5,338 4,322 3,043 15,609 11,044 Total non-interest income 44,581 30,669 31,964 29,209 31,120 75,250 76,396 Non-interest expense: Salaries and employee benefits 65,795 43,551 43,765 42,469 42,462 109,346 84,521 Occupancy and equipment 14,256 9,144 9,047 9,305 9,042 23,400 18,279 Data processing expense 10,094 7,039 6,493 6,024 5,893 17,133 11,763 Merger and acquisition expenses 48,731 863 880 1,006 - 49,594 - Other operating expenses 26,606 16,299 16,865 16,815 15,585 42,905 31,285 Total non-interest expense 165,482 76,896 77,050 75,619 72,982 242,378 145,848 Income before income taxes 19,272 84,921 93,934 98,201 104,142 104,193 224,640 Income tax expense 3,294 20,029 20,577 23,209 25,072 23,323 53,968 Net income $ 15,978 $ 64,892 $ 73,357 $ 74,992 $ 79,070 $ 80,870 $ 170,672 Home BancShares, Inc. Selected Financial Information (Unaudited) Quarter Ended Six Months Ended (Dollars and shares in thousands, except per share data) Jun. 30, 2022 Mar. 31, 2022 Dec. 31, 2021 Sep. 30, 2021 Jun. 30, 2021 Jun. 30, 2022 Jun. 30, 2021 PER SHARE DATA Diluted earnings per common share $ 0.08 $ 0.40 $ 0.45 $ 0.46 $ 0.48 $ 0.44 $ 1.03 Diluted earnings per common share, as adjusted (non-GAAP)(1) 0.47 0.37 0.45 0.45 0.46 0.86 0.93 Basic earnings per common share 0.08 0.40 0.45 0.46 0.48 0.44 1.03 Dividends per share - common 0.165 0.165 0.14 0.14 0.14 0.33 0.28 Book value per common share 17.04 16.41 16.90 16.68 16.39 17.04 16.39 Tangible book value per common share (non-GAAP)(1) 9.92 10.32 10.80 10.59 10.31 9.92 10.31 STOCK INFORMATION Average common shares outstanding 205,683 163,787 163,859 164,126 164,781 184,851 165,018 Average diluted shares outstanding 206,015 164,196 164,306 164,603 165,226 185,223 165,314 End of period common shares outstanding 205,291 163,758 163,699 164,008 164,488 205,291 164,488 ANNUALIZED PERFORMANCE METRICS Return on average assets (ROA) 0.26 % 1.43 % 1.62 % 1.68 % 1.81 % 0.75 % 2.01 % Return on average assets, as adjusted: (ROA, as adjusted) (non-GAAP)(1) 1.57 % 1.36 % 1.64 % 1.67 % 1.75 % 1.48 % 1.81 % Return on average assets excluding intangible amortization (non-GAAP)(1) 0.31 % 1.54 % 1.75 % 1.81 % 1.95 % 0.83 % 2.16 % Return on average assets, as adjusted, excluding intangible amortization (non-GAAP)(1) 1.70 % 1.46 % 1.76 % 1.79 % 1.89 % 1.60 % 1.95 % Return on average assets excluding excess liquidity (non-GAAP)(1) 0.29 % 1.74 % 1.96 % 1.98 % 2.09 % 0.88 % 2.26 % Return on average assets, as adjusted, excluding excess liquidity (non-GAAP)(1) 1.79 % 1.65 % 1.97 % 1.96 % 2.03 % 1.73 % 2.04 % Return on average common equity (ROE) 1.78 % 9.58 % 10.63 % 10.97 % 11.92 % 5.14 % 13.02 % Return on average common equity, as adjusted: (ROE, as adjusted) (non-GAAP)(1) 10.83 % 9.09 % 10.72 % 10.87 % 11.54 % 10.08 % 11.75 % Return on average tangible common equity (ROTCE) (non-GAAP)(1) 2.96 % 15.03 % 16.73 % 17.39 % 19.12 % 8.32 % 20.98 % Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) (non-GAAP)(1) 17.94 % 14.26 % 16.87 % 17.23 % 18.50 % 16.31 % 18.92 % Return on average tangible common equity excluding intangible amortization (non-GAAP)(1) 3.30 % 15.28 % 16.97 % 17.64 % 19.38 % 8.62 % 21.24 % Return on average tangible common equity, as adjusted, excluding intangible amortization (non-GAAP)(1) 18.29 % 14.50 % 17.11 % 17.47 % 18.76 % 16.61 % 19.18 % (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release. Home BancShares, Inc. Selected Financial Information (Unaudited) Quarter Ended Six Months Ended (Dollars in thousands) Jun. 30, 2022 Mar. 31, 2022 Dec. 31, 2021 Sep. 30, 2021 Jun. 30, 2021 Jun. 30, 2022 Jun. 30, 2021 Efficiency ratio 66.31 % 46.15 % 43.79 % 42.26 % 41.09 % 58.26 % 38.71 % Efficiency ratio, as adjusted (non-GAAP)(1) 46.02 % 47.33 % 43.48 % 42.29 % 42.07 % 46.53 % 41.35 % Net interest margin - FTE (NIM) 3.64 % 3.21 % 3.42 % 3.60 % 3.61 % 3.46 % 3.81 % Fully taxable equivalent adjustment $ 2,471 $ 1,738 $ 1,736 $ 1,748 $ 1,774 $ 4,209 $ 3,667 Total revenue (net) 243,339 161,817 170,984 173,820 172,372 405,156 365,736 Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1) 77,857 84,921 93,934 98,201 99,390 162,778 219,888 PPNR, as adjusted (non-GAAP)(1) 126,683 80,371 94,729 96,919 95,940 207,054 197,257 Pre-tax net income to total revenue (net) 7.92 % 52.48 % 54.94 % 56.50 % 60.42 % 25.72 % 61.42 % Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1) 52.06 % 49.67 % 55.40 % 55.76 % 58.42 % 51.10 % 55.23 % P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1) 32.00 % 52.48 % 54.94 % 56.50 % 57.66 % 40.18 % 60.12 % P5NR, as adjusted (non-GAAP)(1) 52.06 % 49.67 % 55.40 % 55.76 % 55.66 % 51.10 % 53.93 % Total purchase accounting accretion $ 5,177 $ 3,089 $ 4,001 $ 4,868 $ 5,797 $ 8,266 $ 11,282 Average purchase accounting loan discounts 48,432 25,359 28,882 33,320 38,568 35,814 41,218 OTHER OPERATING EXPENSES Advertising $ 2,117 $ 1,266 $ 1,411 $ 1,204 $ 1,194 $ 3,383 $ 2,240 Amortization of intangibles 2,477 1,421 1,420 1,421 1,421 3,898 2,842 Electronic banking expense 3,352 2,538 2,442 2,521 2,616 5,890 4,854 Directors' fees 375 404 422 395 414 779 797 Due from bank service charges 396 270 257 265 273 666 522 FDIC and state assessment 2,390 1,668 1,353 1,648 1,108 4,058 2,471 Insurance 973 770 801 749 787 1,743 1,568 Legal and accounting 1,061 797 749 1,050 1,058 1,858 1,904 Other professional fees 2,254 1,609 1,754 1,787 1,796 3,863 3,409 Operating supplies 995 754 489 474 465 1,749 952 Postage 556 306 352 301 292 862 630 Telephone 384 337 343 371 365 721 711 Other expense 9,276 4,159 5,072 4,629 3,796 13,435 8,385 Total other operating expenses $ 26,606 $ 16,299 $ 16,865 $ 16,815 $ 15,585 $ 42,905 $ 31,285 (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) Jun. 30, 2022 Mar. 31, 2022 Dec. 31, 2021 Sep. 30, 2021 Jun. 30, 2021 BALANCE SHEET RATIOS Total loans to total deposits 71.11 % 68.94 % 68.97 % 70.71 % 73.42 % Common equity to assets 14.43 % 14.43 % 15.32 % 15.40 % 15.30 % Tangible common equity to tangible assets (non-GAAP)(1) 8.94 % 9.59 % 10.36 % 10.36 % 10.20 % LOANS RECEIVABLE Real estate Commercial real estate loans Non-farm/non-residential $ 5,092,539 $ 3,810,383 $ 3,889,284 $ 4,005,841 $ 4,144,375 Construction/land development 2,595,384 1,856,096 1,850,050 1,742,687 1,541,482 Agricultural 329,106 142,920 130,674 138,881 126,293 Residential real estate loans Residential 1-4 family 1,708,221 1,223,890 1,274,953 1,273,988 1,316,485 Multifamily residential 389,633 248,650 280,837 274,131 332,256 Total real estate 10,114,883 7,281,939 7,425,798 7,435,528 7,460,891 Consumer 1,106,343 1,059,342 825,519 814,732 824,938 Commercial and industrial 2,187,771 1,510,205 1,386,747 1,414,079 1,612,826 Agricultural 324,630 48,095 43,920 68,272 69,152 Other 190,246 153,133 154,105 168,489 231,368 Loans receivable $ 13,923,873 $ 10,052,714 $ 9,836,089 $ 9,901,100 $ 10,199,175 Paycheck Protection Program (PPP) loans (net of discounts) (included in total loans receivable) 37,204 59,609 112,814 241,476 473,894 ALLOWANCE FOR CREDIT LOSSES Balance, beginning of period $ 234,768 $ 236,714 $ 238,673 $ 240,451 $ 242,932 Allowance for credit losses on PCD loans - Happy acquisition 16,816 - - - - Loans charged off 3,265 2,310 3,125 2,469 3,023 Recoveries of loans previously charged off 778 364 1,166 691 542 Net loans charged off 2,487 1,946 1,959 1,778 2,481 Provision for credit losses - Happy acquisition 45,170 - - - - Balance, end of period $ 294,267 $ 234,768 $ 236,714 $ 238,673 $ 240,451 Net charge-offs to average total loans 0.07 % 0.08 % 0.08 % 0.07 % 0.09 % Allowance for credit losses to total loans 2.11 % 2.34 % 2.41 % 2.41 % 2.36 % Allowance for credit losses to total loans, excluding PPP loans 2.12 % 2.35 % 2.43 % 2.47 % 2.47 % NON-PERFORMING ASSETS Non-performing loans Non-accrual loans $ 44,170 $ 44,629 $ 47,158 $ 47,604 $ 55,269 Loans past due 90 days or more 16,432 46 3,035 3,311 3,667 Total non-performing loans 60,602 44,675 50,193 50,915 58,936 Other non-performing assets Foreclosed assets held for sale, net 373 1,144 1,630 1,171 1,969 Other non-performing assets 104 - - - - Total other non-performing assets 477 1,144 1,630 1,171 1,969 Total non-performing assets $ 61,079 $ 45,819 $ 51,823 $ 52,086 $ 60,905 Allowance for credit losses for loans to non-performing loans 485.57 % 525.50 % 471.61 % 468.77 % 407.99 % Non-performing loans to total loans 0.44 % 0.44 % 0.51 % 0.51 % 0.58 % Non-performing assets to total assets 0.25 % 0.25 % 0.29 % 0.29 % 0.35 % (1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release. Home BancShares, Inc. Consolidated Net Interest Margin (Unaudited) Three Months Ended June 30, 2022 March 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 $ 3,252,674 $ 6,565 0.81 % $ 3,497,894 $ 1,673 0.19 % Federal funds sold 1,857 3 0.65 % 1,751 1 0.23 % Investment securities - taxable 3,817,209 20,941 2.20 % 2,486,401 9,080 1.48 % Investment securities - non-taxable - FTE 1,270,602 10,055 3.17 % 850,722 6,284 3.00 % Loans receivable - FTE 13,838,687 181,920 5.27 % 9,937,993 129,603 5.29 % Total interest-earning assets 22,181,029 219,484 3.97 % 16,774,761 146,641 3.55 % Non-earning assets 2,607,336 1,618,314 Total assets $ 24,788,365 $ 18,393,075 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest-bearing liabilities Savings and interest-bearing transaction accounts $ 12,632,612 $ 9,770 0.31 % $ 9,363,793 $ 3,873 0.17 % Time deposits 1,170,860 959 0.33 % 854,593 1,021 0.48 % Total interest-bearing deposits 13,803,472 10,729 0.31 % 10,218,386 4,894 0.19 % Federal funds purchased 869 2 0.92 % - - - % Securities sold under agreement to repurchase 123,011 187 0.61 % 137,565 108 0.32 % FHLB borrowed funds 400,000 1,896 1.90 % 400,000 1,875 1.90 % Subordinated debentures 568,187 5,441 3.84 % 611,888 6,878 4.56 % Total interest-bearing liabilities 14,895,539 18,255 0.49 % 11,367,839 13,755 0.49 % Non-interest bearing liabilities Non-interest bearing deposits 6,138,497 4,155,894 Other liabilities 162,571 121,362 Total liabilities 21,196,607 15,645,095 Shareholders' equity 3,591,758 2,747,980 Total liabilities and shareholders' equity $ 24,788,365 $ 18,393,075 Net interest spread 3.48 % 3.06 % Net interest income and margin - FTE $ 201,229 3.64 % $ 132,886 3.21 % Home BancShares, Inc. Consolidated Net Interest Margin (Unaudited) Six Months Ended June 30, 2022 June 30, 2021 (Dollars in thousands) Average Balance Income/ Expense Yield/ Rate Average Balance Income/ Expense Yield/ Rate ASSETS Earning assets Interest-bearing balances due from banks $ 3,374,606 $ 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 - FTE 1,061,822 16,339 3.10 % 856,332 13,259 3.12 % Loans receivable - FTE 11,899,115 311,523 5.28 % 10,780,972 292,985 5.48 % Total interest-earning assets 19,492,829 366,125 3.79 % 15,507,866 320,799 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 Shareholders' equity 3,172,200 2,642,978 Total liabilities and shareholders' equity $ 21,608,387 $ 17,107,259 Net interest spread 3.30 % 3.64 % Net interest income and margin - FTE $ 334,115 3.46 % $ 293,007 3.81 % Home BancShares, Inc. Non-GAAP Reconciliations (Unaudited) Quarter Ended Six Months Ended (Dollars and shares in thousands, except per share data) Jun. 30, 2022 Mar. 31, 2022 Dec. 31, 2021 Sep. 30, 2021 Jun. 30, 2021 Jun. 30, 2022 Jun. 30, 2021 EARNINGS, AS ADJUSTED GAAP net income available to common shareholders (A) $ 15,978 $ 64,892 $ 73,357 $ 74,992 $ 79,070 $ 80,870 $ 170,672 Pre-tax adjustments Merger and acquisition expenses 48,731 863 880 1,006 - 49,594 - Initial provision for credit losses - acquisition 58,585 - - - - 58,585 - Fair value adjustment for marketable securities 1,801 (2,125 ) (85 ) (61 ) (1,250 ) (324 ) (7,032 ) Special dividend from equity investment (1,434 ) - - (2,227 ) (2,200 ) (1,434 ) (10,273 ) TRUPS redemption fees 2,081 - - - - 2,081 - Recoveries on historic losses (2,353 ) (3,288 ) - - - (5,641 ) (5,107 ) Gain on securities - - - - - - (219 ) Total pre-tax adjustments 107,411 (4,550 ) 795 (1,282 ) (3,450 ) 102,861 (22,631 ) Tax-effect of adjustments 26,396 (1,220 ) 188 (587 ) (888 ) 25,176 (5,915 ) Total adjustments after-tax (B) 81,015 (3,330 ) 607 (695 ) (2,562 ) 77,685 (16,716 ) Earnings, as adjusted (C) $ 96,993 $ 61,562 $ 73,964 $ 74,297 $ 76,508 $ 158,555 $ 153,956 Average diluted shares outstanding (D) 206,015 164,196 164,306 164,603 165,226 185,223 165,314 GAAP diluted earnings per share: (A/D) $ 0.08 $ 0.40 $ 0.45 $ 0.46 $ 0.48 $ 0.44 $ 1.03 Adjustments after-tax: (B/D) 0.39 (0.03 ) 0.00 (0.01 ) (0.02 ) 0.42 (0.10 ) Diluted earnings per common share, as adjusted: (C/D) $ 0.47 $ 0.37 $ 0.45 $ 0.45 $ 0.46 $ 0.86 $ 0.93 ANNUALIZED RETURN ON AVERAGE ASSETS Return on average assets: (A/E) 0.26 % 1.43 % 1.62 % 1.68 % 1.81 % 0.75 % 2.01 % Return on average assets, as adjusted: (ROA, as adjusted) ((A+D)/E) 1.57 % 1.36 % 1.64 % 1.67 % 1.75 % 1.48 % 1.81 % Return on average assets excluding intangible amortization: ((A+C)/(E-F)) 0.31 % 1.54 % 1.75 % 1.81 % 1.95 % 0.83 % 2.16 % Return on average assets, as adjusted, excluding intangible amortization: ((A+C+D)/(E-F)) 1.70 % 1.46 % 1.76 % 1.79 % 1.89 % 1.60 % 1.95 % Return on average assets excluding excess liquidity: (A/(E-G)) 0.29 % 1.74 % 1.96 % 1.98 % 2.09 % 0.88 % 2.26 % Return on average assets, as adjusted, excluding excess liquidity: ((A+D)/(E-G)) 1.79 % 1.65 % 1.97 % 1.96 % 2.03 % 1.73 % 2.04 % GAAP net income available to common shareholders (A) $ 15,978 $ 64,892 $ 73,357 $ 74,992 $ 79,070 $ 80,870 $ 170,672 Amortization of intangibles (B) 2,477 1,421 1,420 1,421 1,421 3,898 2,842 Amortization of intangibles after-tax (C) 1,854 1,049 1,054 1,055 1,055 2,903 2,098 Adjustments after-tax (D) 81,015 (3,330 ) 607 (695 ) (2,562 ) 77,685 (16,716 ) Average assets (E) 24,788,365 18,393,075 17,914,727 17,695,226 17,491,359 21,608,387 17,107,259 Average goodwill, core deposits & other intangible assets (F) 1,423,466 997,338 998,760 1,000,175 1,001,598 1,211,580 1,002,301 Average interest bearing cash balance 3,252,674 3,497,894 3,261,846 2,914,785 2,577,101 3,374,606 2,096,452 Average historical interest bearing cash balance 225,000 225,000 225,000 225,000 225,000 225,000 225,000 Average excess cash balance (G) 3,027,674 3,272,894 3,036,846 2,689,785 2,352,101 3,149,606 1,871,452 Home BancShares, Inc. Non-GAAP Reconciliations (Unaudited) Quarter Ended Six Months Ended (Dollars in thousands) Jun. 30, 2022 Mar. 31, 2022 Dec. 31, 2021 Sep. 30, 2021 Jun. 30, 2021 Jun. 30, 2022 Jun. 30, 2021 ANNUALIZED RETURN ON AVERAGE COMMON EQUITY Return on average common equity: (A/D) 1.78 % 9.58 % 10.63 % 10.97 % 11.92 % 5.14 % 13.02 % Return on average common equity, as adjusted: (ROE, as adjusted) ((A+C)/D) 10.83 % 9.09 % 10.72 % 10.87 % 11.54 % 10.08 % 11.75 % Return on average tangible common equity: (A/(D-E)) 2.96 % 15.03 % 16.73 % 17.39 % 19.12 % 8.32 % 20.98 % Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) ((A+C)/(D-E)) 17.94 % 14.26 % 16.87 % 17.23 % 18.50 % 16.31 % 18.92 % Return on average tangible common equity excluding intangible amortization: (B/(D-E)) 3.30 % 15.28 % 16.97 % 17.64 % 19.38 % 8.62 % 21.24 % Return on average tangible common equity, as adjusted, excluding intangible amortization: ((B+C)/(D-E)) 18.29 % 14.50 % 17.11 % 17.47 % 18.76 % 16.61 % 19.18 % GAAP net income available to common shareholders (A) $ 15,978 $ 64,892 $ 73,357 $ 74,992 $ 79,070 $ 80,870 $ 170,672 Earnings excluding intangible amortization (B) 17,832 65,941 74,411 76,047 80,125 83,773 172,770 Adjustments after-tax (C) 81,015 (3,330 ) 607 (695 ) (2,562 ) 77,685 (16,716 ) Average common equity (D) 3,591,758 2,747,980 2,738,305 2,710,953 2,660,147 3,172,200 2,642,978 Average goodwill, core deposits & other intangible assets (E) 1,423,466 997,338 998,760 1,000,175 1,001,598 1,211,580 1,002,301 EFFICIENCY RATIO & P5NR Efficiency ratio: ((D-H)/(B+C+E)) 66.31 % 46.15 % 43.79 % 42.26 % 41.09 % 58.26 % 38.71 % Efficiency ratio, as adjusted: ((D-H-J)/(B+C+E-I)) 46.02 % 47.33 % 43.48 % 42.29 % 42.07 % 46.53 % 41.35 % Pre-tax net income to total revenue (net) (A/(B+C)) 7.92 % 52.48 % 54.94 % 56.50 % 60.42 % 25.72 % 61.42 % Pre-tax net income, as adjusted, to total revenue (net) ((A+F)/(B+C)) 52.06 % 49.67 % 55.40 % 55.76 % 58.42 % 51.10 % 55.23 % Pre-tax, pre-provision, net income (PPNR) (B+C-D) $ 77,857 $ 84,921 $ 93,934 $ 98,201 $ 99,390 $ 162,778 $ 219,888 Pre-tax, pre-provision, net income, as adjusted (B+C-D+F-G) $ 126,683 $ 80,371 $ 94,729 $ 96,919 $ 95,940 $ 207,054 $ 197,257 P5NR (Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C) 32.00 % 52.48 % 54.94 % 56.50 % 57.66 % 40.18 % 60.12 % P5NR, as adjusted (B+C-D+F-G)/(B+C) 52.06 % 49.67 % 55.40 % 55.76 % 55.66 % 51.10 % 53.93 % Pre-tax net income (A) $ 19,272 $ 84,921 $ 93,934 $ 98,201 $ 104,142 $ 104,193 $ 224,640 Net interest income (B) 198,758 131,148 139,020 144,611 141,252 329,906 289,340 Non-interest income (C) 44,581 30,669 31,964 29,209 31,120 75,250 76,396 Non-interest expense (D) 165,482 76,896 77,050 75,619 72,982 242,378 145,848 Fully taxable equivalent adjustment (E) 2,471 1,738 1,736 1,748 1,774 4,209 3,667 Total pre-tax adjustments (F) 107,411 (4,550 ) 795 (1,282 ) (3,450 ) 102,861 (22,631 ) Initial provision for credit losses - acquisition (G) 58,585 - - - - 58,585 - Amortization of intangibles (H) 2,477 1,421 1,420 1,421 1,421 3,898 2,842 Adjustments: Non-interest income: Fair value adjustment for marketable securities $ (1,801 ) $ 2,125 $ 85 $ 61 $ 1,250 $ 324 $ 7,032 Gain on OREO 9 478 737 246 619 487 1,020 Gain (loss) on branches, equipment and other assets, net 2 16 (19 ) (34 ) (23 ) 18 (52 ) Special dividend from equity investment 1,434 - - 2,227 2,200 1,434 10,273 Gain on securities - - - - - - 219 Recoveries on historic losses 2,353 3,288 - - - 5,641 5,107 Total non-interest income adjustments (I) $ 1,997 $ 5,907 $ 803 $ 2,500 $ 4,046 $ 7,904 $ 23,599 Non-interest expense: Merger and acquisition expenses 48,731 863 880 1,006 - 49,594 - TRUPS redemption fees 2,081 - - - - 2,081 - Total non-interest expense adjustments (J) $ 50,812 $ 863 $ 880 $ 1,006 $ - $ 51,675 $ - Home BancShares, Inc. Non-GAAP Reconciliations (Unaudited) Quarter Ended Jun. 30, 2022 Mar. 31, 2022 Dec. 31, 2021 Sep. 30, 2021 Jun. 30, 2021 TANGIBLE BOOK VALUE PER COMMON SHARE Book value per common share: (A/B) $ 17.04 $ 16.41 $ 16.90 $ 16.68 $ 16.39 Tangible book value per common share: ((A-C-D)/B) 9.92 10.32 10.80 10.59 10.31 Total stockholders' equity (A) $ 3,498,565 $ 2,686,703 $ 2,765,721 $ 2,736,062 $ 2,696,189 End of period common shares outstanding (B) 205,291 163,758 163,699 164,008 164,488 Goodwill (C) 1,398,400 973,025 973,025 973,025 973,025 Core deposit and other intangibles (D) 63,410 23,624 25,045 26,466 27,886 TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS Equity to assets: (B/A) 14.43 % 14.43 % 15.32 % 15.40 % 15.30 % Tangible common equity to tangible assets: ((B-C-D)/(A-C-D)) 8.94 % 9.59 % 10.36 % 10.36 % 10.20 % Total assets (A) $ 24,253,168 $ 18,617,995 $ 18,052,138 $ 17,765,056 $ 17,627,192 Total stockholders' equity (B) 3,498,565 2,686,703 2,765,721 2,736,062 2,696,189 Goodwill (C) 1,398,400 973,025 973,025 973,025 973,025 Core deposit and other intangibles (D) 63,410 23,624 25,045 26,466 27,886 
