Happy at HOMB: Third Quarter 2021 Beats on Net Income and EPS With New Nine-Month Record on Both, While Tacking on September Loan Growth

Rhea-AI Summary

Home BancShares, Inc. (NASDAQ GS: HOMB) reported a net income of $75.0 million for Q3 2021, reflecting a decline from $79.1 million in Q2 2021. Total revenue increased slightly to $173.8 million. The company maintained an ROA of 1.68% and ROE of 10.97%. Non-performing assets to total assets decreased to 0.29%. Additionally, loans recorded an increase of $55 million ex-PPP. The acquisition of Happy Bancshares is set to close in Q1 2022, pending approvals.

Positive

• Net income increased to $75.0 million in Q3 2021 from $69.3 million in Q3 2020.
• Total assets rose to $17.77 billion as of September 30, 2021, up from $17.63 billion in Q2 2021.
• Non-performing assets to total assets decreased to 0.29%, suggesting improved asset quality.
• Executed a $250 million increase in unfunded commitments during the quarter.

Negative

• Net income decreased from $79.1 million in Q2 2021, indicating potential trend concerns.
• Total loans receivable decreased to $9.90 billion at September 30, 2021, down from $10.20 billion.
• Non-performing loans increased to $15.5 million, highlighting risks in specific markets.

CONWAY, Ark., Oct. 21, 2021 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ GS: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.

Highlights of the Third Quarter of 2021:

Metric	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020
Net Income	$75.0 million	$79.1 million	$91.6 million	$81.8 million	$69.3 million
Total Revenue (net)	$173.8 million	$172.4 million	$193.4 million	$181.9 million	$176.1 million
Income (loss) before income taxes	$98.2 million	$104.1 million	$120.5 million	$107.7 million	$90.4 million
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)	$98.2 million	$99.4 million	$120.5 million	$107.7 million	$104.4 million
Pre-tax net income to total revenue (net)	56.50%	60.42%	62.32%	59.19%	51.32%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)	56.50%	57.66%	62.32%	59.19%	59.28%
ROA	1.68%	1.81%	2.22%	1.97%	1.66%
NIM	3.60%	3.61%	4.02%	4.00%	3.92%
NIM, excluding PPP loans (non-GAAP)(1)	3.43%	3.54%	3.87%	3.97%	3.98%
Purchase Accounting Accretion	$4.9 million	$5.8 million	$5.5 million	$5.7 million	$7.0 million
ROE	10.97%	11.92%	14.15%	12.72%	10.97%
ROTCE (non-GAAP)(1)	17.39%	19.12%	22.90%	20.96%	18.29%
Diluted Earnings Per Share	$0.46	$0.48	$0.55	$0.50	$0.42
Non-Performing Assets to Total Assets	0.29%	0.35%	0.38%	0.48%	0.47%
Common Equity Tier 1 Capital	15.2%	15.0%	14.3%	13.4%	12.6%
Leverage	11.0%	10.9%	11.1%	10.8%	10.4%
Tier 1 Capital	15.8%	15.6%	14.9%	14.0%	13.2%
Total Risk-Based Capital	19.6%	19.5%	18.8%	17.8%	16.9%
Allowance for Credit Losses to Total Loans	2.41%	2.36%	2.25%	2.19%	2.12%
Allowance for Credit Losses to Total Loans, excluding PPP loans (non-GAAP)(1)	2.47%	2.47%	2.40%	2.33%	2.28%

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

“We had a great third quarter and a great first nine months as our company is continuing on to another $300 million plus year for the fourth year in a row. On the Happy HOMB front, there may not have been a better deal done in the last several years, unless it was an MOE or a complete franchise overlap that eliminated almost all of the branches. As a well-known analyst said, ‘HOMB threaded the needle perfectly on this deal.’ The market reaction has been favorable and a nod to the work we put into the structure of a triple accretive deal,” said John Allison, Chairman.

“September saw the first quality loan growth we have seen in some time. Loans recorded an increase of $55 million ex-PPP for the month - couple that with a $250 million increase in unfunded commitments for the quarter, and we are optimistic that quality loans will continue to build. I am personally excited about our partnership with Happy State Bank and am looking forward to working with their team in 2022 and beyond. I could not be happier with this deal as it works for both Happy and HOMB employees and shareholders,” said Tracy French, Centennial Bank President and Chief Executive Officer.

Operating Highlights

Net income for the three-month period ended September 30, 2021 was $75.0 million, or $0.46 earnings per share. Net income for the nine-month period ended September 30, 2021 was $245.7 million, or $1.49 earnings per share, both of which are records for the Company.

During the third quarter of 2021, the Company did not record any credit loss expense. The Company’s provisioning model is closely tied to unemployment rate projections which have continued to improve since the fourth quarter of 2020. The Company determined that an additional provision for credit losses on loans was not necessary as the current level of the allowance for credit losses was considered adequate as of September 30, 2021. In addition, the Company determined that the current level of the unfunded commitment reserve was adequate and no additional provision for unfunded commitments was necessary.

Our net interest margin was 3.60% for the three-month period ended September 30, 2021 compared to 3.61% for the three-month period ended June 30, 2021. The yield on loans was 5.64% and 5.40% for the three months ended September 30, 2021 and June 30, 2021, respectively, as average loans decreased from $10.54 billion to $10.04 billion. Additionally, the rate on interest bearing deposits decreased to 0.23% as of September 30, 2021 from 0.26% as of June 30, 2021, with average balances of $9.86 billion and $9.81 billion, respectively.

As of September 30, 2021, we had $241.5 million of Paycheck Protection Program (PPP) loans outstanding. These loans are at 1.00% plus the accretion of the origination fee. Excluding PPP loans, our net interest margin (non-GAAP) for the three-month period ended September 30, 2021 was 3.43%.⁽¹⁾ The PPP loans were accretive to the net interest margin by 17 basis points for the three-month period ended September 30, 2021 compared to 7 basis points for the three-month period ended June 30, 2021. This was primarily due to approximately $232.4 million of the Company’s PPP loans being forgiven during the third quarter of 2021 as well as the acceleration of deferred fees for the loans that were forgiven. The deferred fee income increased from $6.3 million to $9.3 million for the three-month periods ended June 30, 2021 and September 30, 2021, respectively.

The effects of the COVID-19 pandemic continued to create a significant amount of excess liquidity in the market. As a result of this excess liquidity, we had an increase of $337.7 million of average interest-bearing cash balances in the third quarter of 2021 compared to the second quarter of 2021. This excess liquidity diluted the net interest margin by 8 basis points for the three-month period ended September 30, 2021.

During the third quarter of 2021, there was $3.5 million of event interest income compared to event interest income of $942,000 for the second quarter of 2021. This increased the net interest margin by 6 basis points.

Purchase accounting accretion on acquired loans was $4.9 million and $5.8 million and average purchase accounting loan discounts were $36.5 million and $38.6 million for the three-month periods ended September 30, 2021 and June 30, 2021, respectively. The reduction in accretion income reduced the net interest margin by 2 basis points for the three-month period ended September 30, 2021.

Net interest income on a fully taxable equivalent basis was $146.4 million for the three-month period ended September 30, 2021 and $143.0 million for the three-month period ended June 30, 2021. This increase in net interest income for the three-month period ended September 30, 2021 was the result of a $2.6 million increase in interest income and a $780,000 decrease in interest expense. The $2.6 million increase in interest income was primarily the result of a $1.2 million net increase in investment income, a $911,000 increase in loan interest income, and a $410,000 increase in interest-bearing balances due from banks. The $780,000 decrease in interest expense was primarily the result of a decrease in interest expense on deposits.

The Company reported $29.2 million of non-interest income for the third quarter of 2021. The most important components of the second quarter non-interest income were $8.1 million from other service charges and fees, $5.9 million in mortgage lending income, $5.9 million from service charges on deposit accounts, $4.3 million from other income and $2.7 million from dividends from FHLB, FRB, FNBB and other. Included in the $2.7 million in dividends from FHLB, FRB, FNBB and other were $2.2 million in special dividends from equity investments. The Company is still currently involved in these investments; however, past performance does not guarantee future performance.

Non-interest expense for the third quarter of 2021 was $75.6 million. The most important components of the second quarter non-interest expense were $42.5 million from salaries and employee benefits, $16.8 million in other expense, $9.3 million in occupancy and equipment expenses and $6.0 million in data processing expenses. Also included within non-interest expense was $1.0 million in merger and acquisition expenses, the majority of which is non-deductible for tax purposes. For the third quarter of 2021, our efficiency ratio was 42.26%.

Financial Condition

Total loans receivable were $9.90 billion at September 30, 2021 compared to $10.20 billion at June 30, 2021. Total deposits were $14.00 billion at September 30, 2021 compared to $13.89 billion at June 30, 2021. Total assets were $17.77 billion at September 30, 2021 compared to $17.63 billion at June 30, 2021.

During the third quarter 2021, the Company experienced approximately $298.1 million in loan decline. Centennial CFG experienced $76.1 million of organic loan growth and had loans of $1.64 billion at September 30, 2021. Our legacy footprint experienced $141.8 million in organic loan decline and $232.4 million in PPP loan decline during the quarter.

Non-performing loans to total loans was 0.51% as of September 30, 2021 compared to 0.58% as of June 30, 2021. Non-performing assets to total assets decreased from 0.35% as of June 30, 2021 to 0.29% as of September 30, 2021. Net charge-offs were $1.8 million and $2.5 million for the three months ended September 30, 2021 and June 30, 2021, respectively.

Non-performing loans at September 30, 2021 were $15.5 million, $25.2 million, $523,000, $1.9 million and $7.8 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $50.9 million. Non-performing assets at September 30, 2021 were $16.1 million, $25.8 million, $523,000, $1.9 million and $7.8 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $52.1 million.

The Company’s allowance for credit losses on loans was $238.7 million at September 30, 2021, or 2.41% of total loans, compared to the allowance for credit losses of $240.5 million, or 2.36% of total loans, at June 30, 2021. The Company’s allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.47%⁽¹⁾ at both September 30, 2021 and June 30, 2021. As of September 30, 2021 and June 30, 2021, the Company’s allowance for credit losses on loans was 468.77% and 407.99% of its total non-performing loans, respectively.

Stockholders’ equity was $2.74 billion at September 30, 2021 compared to $2.70 billion at June 30, 2021, an increase of approximately $39.9 million. The increase in stockholders’ equity was primarily associated with the $52.0 million increase in retained earnings, which was partially offset by a $3.1 million decrease in accumulated other comprehensive income and net stock repurchases and share-based compensation activity of $9.0 million. Book value per common share was $16.68 at September 30, 2021 compared to $16.39 at June 30, 2021. Tangible book value per common share (non-GAAP) was $10.59⁽¹⁾ at September 30, 2021 compared to $10.31⁽¹⁾ at June 30, 2021, an increase of 10.77% on an annualized basis.   

______________________________
(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, 5 branches in Alabama and one branch in New York City.

Acquisition

The Company’s previously announced acquisition of Happy Bancshares, Inc. (“Happy”) and its bank subsidiary, Happy State Bank, is currently expected to close during the first quarter of 2022 and is subject to the approval of the shareholders of each company, regulatory approvals and other customary closing conditions.

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, October 21, 2021. We encourage all participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10160407/ed8432fe7e. Callers who pre-register will be given dial-in instructions and a unique PIN 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 1-877-508-9586 and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-344-7529, Passcode: 10160407, which will be available until October 28, 2021 at 10:59 p.m. CT (11:59 ET). Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com under “Investor Relations” for 12 months.

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, South Alabama and New York City. The Company’s common stock is traded through the NASDAQ Global Select Market under the symbol “HOMB.” The company was founded in 1998 and is headquartered in Conway, Arkansas. 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; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets excluding intangible amortization; return on average assets excluding excess liquidity; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity excluding intangible amortization; return on average tangible common equity, as adjusted; efficiency ratio, as adjusted; net interest margin, excluding PPP loans; allowance for credit losses to total loans, excluding PPP loans; tangible book value per common share and tangible common equity to tangible assets--to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions (including the effect of the PPP loans) that management believes are not indicative of the Company’s primary business operating results. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

General

This release may contain forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future, as well as statements about the benefits of the business combination transaction involving Home and Happy. 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 of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors include, but are not limited to, the following:  economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment; disruptions, uncertainties and related effects on our business and operations as a result of the ongoing coronavirus (COVID-19) pandemic and measures that have been or may be implemented or imposed in response to the pandemic, including the impact on, among other things, credit quality and liquidity; the possibility that the proposed acquisition of Happy 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 possibility that such transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, ongoing or future effects of the COVID-19 pandemic, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Home and Happy operate; the ability to promptly and effectively integrate the businesses of Home and Happy; the reaction to the transaction of the companies’ customers, employees and counterparties; diversion of management time on acquisition-related issues; the effect of any future mergers, acquisitions or other transactions to which we or our bank subsidiary may from time to time be a party, including as a result of one or more of the factors described above as they would relate to such transaction; the ability to identify, enter into and/or close additional acquisitions; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations, including those in response to the COVID-19 pandemic; technological changes and cybersecurity risks; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; changes in the assumptions used in making the forward-looking statements; and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021.

Additional Important Information and Where to Find It

This press release may be deemed to be solicitation material in respect of the proposed transaction by Home and Happy. In connection with the proposed acquisition, Home intends to file with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 (the “Registration Statement”) to register the shares of Home common stock to be issued to shareholders of Happy in connection with the transaction. The Registration Statement will include a joint proxy statement of Home and Happy and a prospectus of Home (the “Joint Proxy Statement/Prospectus”), as well as other relevant materials regarding the proposed merger transaction involving Home and Happy. The definitive Joint Proxy Statement/Prospectus will be mailed to shareholders of Home and Happy. INVESTORS AND SECURITY HOLDERS OF HOME AND HAPPY ARE ADVISED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE JOINT PROXY STATEMENT/PROSPECTUS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER TRANSACTION. Investors and security holders may obtain free copies of these documents, once they are filed, and other documents filed with the SEC on the SEC’s website at http://www.sec.gov. Investors and security holders may also obtain free copies of the documents filed with the SEC by Home at Home’s website at http://www.homebancshares.com, Investor Relations, or by contacting Donna Townsell, by telephone at (501) 328-4625.

Participants in Solicitation

Home and Happy and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Home and Happy in connection with the merger transaction. Information about the directors and executive officers of Home and their ownership of Home common stock is set forth in the proxy statement for Home’s 2021 Annual Meeting of Shareholders, as filed with the SEC on Schedule 14A on March 2, 2021. Information about the directors and executive officers of Happy and their ownership of Happy common stock will be set forth in the Joint Proxy Statement/Prospectus to be included in the Registration Statement. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the Joint Proxy Statement/Prospectus regarding the merger transaction. Free copies of this document may be obtained as described in the preceding paragraph when it becomes available.

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)

		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(In thousands)		2021			2021			2021			2020			2020
ASSETS
Cash and due from banks		$	146,378		$	182,226		$	218,814		$	242,173		$	144,197
Interest-bearing deposits with other banks			3,133,878			2,759,027			2,259,734			1,021,615			899,140
Cash and cash equivalents			3,280,256			2,941,253			2,478,548			1,263,788			1,043,337
Investment securities - available-for-sale, net of allowance for credit losses			3,150,608			3,053,712			2,539,123			2,473,781			2,361,900
Loans receivable			9,901,100			10,199,175			10,778,493			11,220,721			11,691,470
Allowance for credit losses			(238,673	)		(240,451	)		(242,932	)		(245,473	)		(248,224	)
Loans receivable, net			9,662,427			9,958,724			10,535,561			10,975,248			11,443,246
Bank premises and equipment, net			276,972			278,502			278,620			278,614			280,364
Foreclosed assets held for sale			1,171			1,969			3,004			4,420			4,322
Cash value of life insurance			104,638			104,132			103,599			103,519			102,989
Accrued interest receivable			48,577			48,725			55,495			60,528			72,599
Deferred tax asset, net			69,724			72,273			77,145			70,249			75,167
Goodwill			973,025			973,025			973,025			973,025			973,025
Core deposit and other intangibles			26,466			27,886			29,307			30,728			32,149
Other assets			171,192			166,991			166,814			164,904			160,660
Total assets		$	17,765,056		$	17,627,192		$	17,240,241		$	16,398,804		$	16,549,758
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing		$	4,139,149		$	4,076,570		$	3,859,722		$	3,266,753		$	3,207,967
Savings and interest-bearing transaction accounts			8,813,326			8,744,900			8,477,208			8,212,240			8,011,200
Time deposits			1,050,896			1,069,871			1,175,664			1,246,797			1,718,299
Total deposits			14,003,371			13,891,341			13,512,594			12,725,790			12,937,466
Securities sold under agreements to repurchase			141,002			150,540			162,929			168,931			158,447
FHLB and other borrowed funds			400,000			400,000			400,000			400,000			403,428
Accrued interest payable and other liabilities			113,721			118,415			148,999			127,999			139,485
Subordinated debentures			370,900			370,707			370,515			370,326			370,133
Total liabilities			15,028,994			14,931,003			14,595,037			13,793,046			14,008,959
Stockholders' equity
Common stock			1,640			1,645			1,651			1,651			1,652
Capital surplus			1,492,588			1,501,615			1,516,286			1,520,617			1,520,103
Retained earnings			1,215,831			1,163,810			1,107,818			1,039,370			980,699
Accumulated other comprehensive income			26,003			29,119			19,449			44,120			38,345
Total stockholders' equity			2,736,062			2,696,189			2,645,204			2,605,758			2,540,799
Total liabilities and stockholders' equity		$	17,765,056		$	17,627,192		$	17,240,241		$	16,398,804		$	16,549,758

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

		Quarter Ended																Nine Months Ended
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,				Sep. 30,			Sep. 30,
(In thousands)		2021			2021			2021			2020			2020				2021			2020
Interest income
Loans		$	142,609		$	141,684		$	150,917		$	153,407		$	154,787			$	435,210		$	471,931
Investment securities
Taxable			8,495			7,185			6,253			6,900			7,227				21,933			25,696
Tax-exempt			4,839			4,905			5,071			4,979			4,367				14,815			11,179
Deposits - other banks			1,117			707			410			270			252				2,234			1,579
Federal funds sold			-			-			-			-			-				-			21
Total interest income			157,060			154,481			162,651			165,556			166,633				474,192			510,406
Interest expense
Interest on deposits			5,642			6,434			7,705			10,596			13,200				19,781			52,514
Federal funds purchased			-			-			-			-			-				-			13
FHLB borrowed funds			1,917			1,896			1,875			1,917			2,235				5,688			7,589
Securities sold under agreements to repurchase			102			107			190			208			237				399			959
Subordinated debentures			4,788			4,792			4,793			4,810			4,823				14,373			14,801
Total interest expense			12,449			13,229			14,563			17,531			20,495				40,241			75,876
Net interest income			144,611			141,252			148,088			148,025			146,138				433,951			434,530
Provision for credit losses			-			-			-			-			14,000				-			112,264
Provision for credit loss - unfunded commitments			-			(4,752	)		-			-			-				(4,752	)		16,989
Total credit loss expense			-			(4,752	)		-			-			14,000				(4,752	)		129,253
Net interest income after provision for credit losses			144,611			146,004			148,088			148,025			132,138				438,703			305,277
Non-interest income
Service charges on deposit accounts			5,941			5,116			5,002			5,544			4,910				16,059			15,837
Other service charges and fees			8,051			9,659			7,608			8,425			8,539				25,318			22,261
Trust fees			479			444			522			420			378				1,445			1,213
Mortgage lending income			5,948			6,202			8,167			10,071			10,177				20,317			18,994
Insurance commissions			586			478			492			366			271				1,556			1,482
Increase in cash value of life insurance			509			537			502			534			548				1,548			1,666
Dividends from FHLB, FRB, FNBB & other			2,661			2,646			8,609			967			3,433				13,916			11,505
Gain on SBA loans			439			1,149			-			304			-				1,588			341
(Loss) gain on branches, equipment and other assets, net			(34	)		(23	)		(29	)		217			(27	)			(86	)		109
Gain on OREO, net			246			619			401			150			470				1,266			982
Gain on securities, net			-			-			219			-			-				219			-
Fair value adjustment for marketable securities			61			1,250			5,782			4,271			(1,350	)			7,093			(6,249	)
Other income			4,322			3,043			8,001			2,616			2,602				15,366			9,760
Total non-interest income			29,209			31,120			45,276			33,885			29,951				105,605			77,901
Non-interest expense
Salaries and employee benefits			42,469			42,462			42,059			43,022			41,511				126,990			120,928
Occupancy and equipment			9,305			9,042			9,237			9,801			9,566				27,584			28,611
Data processing expense			6,024			5,893			5,870			5,171			4,921				17,787			13,861
Merger and acquisition expenses			1,006			-			-			-			-				1,006			711
Other operating expenses			16,815			15,585			15,700			16,247			15,714				48,100			49,033
Total non-interest expense			75,619			72,982			72,866			74,241			71,712				221,467			213,144
Income (loss) before income taxes			98,201			104,142			120,498			107,669			90,377				322,841			170,034
Income tax expense (benefit)			23,209			25,072			28,896			25,875			21,057				77,177			37,380
Net income		$	74,992		$	79,070		$	91,602		$	81,794		$	69,320			$	245,664		$	132,654

Home BancShares, Inc.
Selected Financial Information
(Unaudited)

		Quarter Ended																Nine Months Ended
(Dollars and shares in thousands,		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,				Sep. 30,			Sep. 30,
except per share data)		2021			2021			2021			2020			2020				2021			2020
PER SHARE DATA
Diluted earnings per common share		$	0.46		$	0.48		$	0.55		$	0.50		$	0.42			$	1.49		$	0.80
Diluted earnings per common share, as adjusted, excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses (non-GAAP)(1)			0.45			0.46			0.47			0.48			0.41				1.38			0.80
Basic earnings per common share			0.46			0.48			0.55			0.50			0.42				1.49			0.80
Dividends per share - common			0.14			0.14			0.14			0.14			0.13				0.42			0.39
Book value per common share			16.68			16.39			16.02			15.78			15.38				16.68			15.38
Tangible book value per common share (non-GAAP)(1)			10.59			10.31			9.95			9.70			9.30				10.59			9.30
STOCK INFORMATION
Average common shares outstanding			164,126			164,781			165,257			165,119			165,200				164,717			165,458
Average diluted shares outstanding			164,603			165,226			165,446			165,119			165,200				165,050			165,458
End of period common shares outstanding			164,008			164,488			165,141			165,095			165,163				164,008			165,163
ANNUALIZED PERFORMANCE METRICS
Return on average assets			1.68	%		1.81	%		2.22	%		1.97	%		1.66	%			1.90	%		1.11	%
Return on average assets excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROA, as adjusted) (non-GAAP)(1)			1.67	%		1.75	%		1.88	%		1.90	%		1.63	%			1.76	%		1.10	%
Return on average assets excluding intangible amortization (non-GAAP)(1)			1.81	%		1.95	%		2.39	%		2.13	%		1.80	%			2.04	%		1.21	%
Return on average assets excluding excess liquidity (non-GAAP)(1)			1.98	%		2.09	%		2.42	%		2.07	%		1.74	%			2.17	%		1.14	%
Return on average common equity			10.97	%		11.92	%		14.15	%		12.72	%		10.97	%			12.32	%		7.13	%
Return on average common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROE, as adjusted) (non-GAAP)(1)			10.87	%		11.54	%		11.95	%		12.23	%		10.76	%			11.44	%		7.08	%
Return on average tangible common equity (non-GAAP)(1)			17.39	%		19.12	%		22.90	%		20.96	%		18.29	%			19.74	%		11.96	%
Return on average tangible common equity excluding intangible amortization (non-GAAP)(1)			17.64	%		19.38	%		23.16	%		21.22	%		18.56	%			19.99	%		12.26	%
Return on average tangible common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROTCE, as adjusted) (non-GAAP)(1)			17.23	%		18.50	%		19.33	%		20.15	%		17.93	%			18.33	%		11.89	%

(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																Nine Months Ended
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,				Sep. 30,			Sep. 30,
(Dollars in thousands)		2021			2021			2021			2020			2020				2021			2020
Efficiency ratio			42.26	%		41.09	%		36.60	%		39.64	%		39.56	%			39.86	%		40.40	%
Efficiency ratio, as adjusted (non-GAAP)(1)			42.29	%		42.07	%		40.68	%		40.67	%		40.08	%			41.67	%		40.25	%
Net interest margin - FTE			3.60	%		3.61	%		4.02	%		4.00	%		3.92	%			3.74	%		4.08	%
Net interest margin - FTE, excluding PPP loans (non-GAAP)(1)			3.43	%		3.54	%		3.87	%		3.97	%		3.98	%			3.61	%		4.12	%
Fully taxable equivalent adjustment		$	1,748		$	1,774		$	1,821		$	1,778		$	1,576			$	5,343		$	4,237
Total revenue (net)			173,820			172,372			193,364			181,910			176,089				539,556			512,431
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)			98,201			99,390			120,498			107,669			104,377				318,089			299,287
Pre-tax net income to total revenue (net)			56.50	%		60.42	%		62.32	%		59.19	%		51.32	%			59.83	%		33.18	%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)			56.50	%		57.66	%		62.32	%		59.19	%		59.28	%			58.95	%		58.41	%
Total purchase accounting accretion			4,868			5,797			5,485			5,736			6,957				16,150			21,640
Average purchase accounting loan discounts			36,456			38,568			43,940			49,563			55,835				38,587			62,662
OTHER OPERATING EXPENSES
Advertising		$	1,204		$	1,194		$	1,046		$	1,076		$	902			$	3,444		$	2,923
Amortization of intangibles			1,421			1,421			1,421			1,421			1,420				4,263			4,423
Electronic banking expense			2,521			2,616			2,238			2,282			2,426				7,375			6,195
Directors' fees			395			414			383			359			429				1,192			1,265
Due from bank service charges			265			273			249			254			259				787			721
FDIC and state assessment			1,648			1,108			1,363			1,493			1,607				4,119			5,001
Insurance			749			787			781			795			766				2,317			2,223
Legal and accounting			1,050			1,058			846			790			1,235				2,954			3,432
Other professional fees			1,787			1,796			1,613			1,528			1,661				5,196			6,622
Operating supplies			474			465			487			440			460				1,426			1,548
Postage			301			292			338			315			328				931			968
Telephone			371			365			346			347			321				1,082			955
Other expense			4,629			3,796			4,589			5,147			3,900				13,014			12,757
Total other operating expenses		$	16,815		$	15,585		$	15,700		$	16,247		$	15,714			$	48,100		$	49,033

(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)

		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(Dollars in thousands)		2021			2021			2021			2020			2020
BALANCE SHEET RATIOS
Total loans to total deposits			70.71	%		73.42	%		79.77	%		88.17	%		90.37	%
Common equity to assets			15.40	%		15.30	%		15.34	%		15.89	%		15.35	%
Tangible common equity to tangible assets (non-GAAP)(1)			10.36	%		10.20	%		10.12	%		10.41	%		9.88	%
LOANS RECEIVABLE
Real estate
Commercial real estate loans
Non-farm/non-residential		$	4,005,841		$	4,144,375		$	4,289,142		$	4,429,060		$	4,342,141
Construction/land development			1,742,687			1,541,482			1,612,973			1,562,298			1,748,928
Agricultural			138,881			126,293			113,382			114,431			89,476
Residential real estate loans
Residential 1-4 family			1,273,988			1,316,485			1,437,546			1,536,257			1,665,628
Multifamily residential			274,131			332,256			377,661			536,538			491,380
Total real estate			7,435,528			7,460,891			7,830,704			8,178,584			8,337,553
Consumer			814,732			824,938			839,819			864,690			883,568
Commercial and industrial			1,414,079			1,612,826			1,794,787			1,896,442			2,161,818
Agricultural			68,272			69,152			65,017			66,869			85,365
Other			168,489			231,368			248,166			214,136			223,166
Loans receivable		$	9,901,100		$	10,199,175		$	10,778,493		$	11,220,721		$	11,691,470
Paycheck Protection Program (PPP) loans (net of discounts) (included in total loans receivable)			241,476			473,894			646,382			675,225			825,362
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period		$	240,451		$	242,932		$	245,473		$	248,224		$	238,340
Loans charged off			2,469			3,023			3,047			3,040			4,599
Recoveries of loans previously charged off			691			542			506			289			483
Net loans charged off			1,778			2,481			2,541			2,751			4,116
Provision for credit losses - loans			-			-			-			-			14,000
Balance, end of period		$	238,673		$	240,451		$	242,932		$	245,473		$	248,224
Net charge-offs to average total loans			0.07	%		0.09	%		0.09	%		0.10	%		0.14	%
Allowance for credit losses to total loans			2.41	%		2.36	%		2.25	%		2.19	%		2.12	%
Allowance for credit losses to total loans, excluding PPP loans			2.47	%		2.47	%		2.40	%		2.33	%		2.28	%
NON-PERFORMING ASSETS
Non-performing loans
Non-accrual loans		$	47,604		$	55,269		$	59,142		$	64,528		$	65,148
Loans past due 90 days or more			3,311			3,667			4,209			9,610			8,635
Total non-performing loans			50,915			58,936			63,351			74,138			73,783
Other non-performing assets
Foreclosed assets held for sale, net			1,171			1,969			3,004			4,420			4,322
Other non-performing assets			-			-			-			-			247
Total other non-performing assets			1,171			1,969			3,004			4,420			4,569
Total non-performing assets		$	52,086		$	60,905		$	66,355		$	78,558		$	78,352
Allowance for credit losses for loans to non-performing loans			468.77	%		407.99	%		383.47	%		331.10	%		336.42	%
Non-performing loans to total loans			0.51	%		0.58	%		0.59	%		0.66	%		0.63	%
Non-performing assets to total assets			0.29	%		0.35	%		0.38	%		0.48	%		0.47	%

(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
		September 30, 2021									June 30, 2021
		Average			Income/			Yield/			Average			Income/			Yield/
(Dollars in thousands)		Balance			Expense			Rate			Balance			Expense			Rate
ASSETS
Earning assets
Interest-bearing balances due from banks		$	2,914,785		$	1,117			0.15	%	$	2,577,101		$	707			0.11	%
Federal funds sold			82			-			0.00	%		51			-			0.00	%
Investment securities - taxable			2,289,680			8,495			1.47	%		1,909,485			7,185			1.51	%
Investment securities - non-taxable - FTE			862,586			6,416			2.95	%		864,416			6,494			3.01	%
Loans receivable - FTE			10,043,393			142,780			5.64	%		10,541,466			141,869			5.40	%
Total interest-earning assets			16,110,526			158,808			3.91	%		15,892,519			156,255			3.94	%
Non-earning assets			1,584,700									1,598,840
Total assets		$	17,695,226								$	17,491,359
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts		$	8,794,657		$	3,613			0.16	%	$	8,684,726		$	3,960			0.18	%
Time deposits			1,063,500			2,029			0.76	%		1,123,287			2,474			0.88	%
Total interest-bearing deposits			9,858,157			5,642			0.23	%		9,808,013			6,434			0.26	%
Securities sold under agreement to repurchase			143,937			102			0.28	%		157,570			107			0.27	%
FHLB borrowed funds			400,000			1,917			1.90	%		400,000			1,896			1.90	%
Subordinated debentures			370,805			4,788			5.12	%		370,613			4,792			5.19	%
Total interest-bearing liabilities			10,772,899			12,449			0.46	%		10,736,196			13,229			0.49	%
Non-interest bearing liabilities
Non-interest bearing deposits			4,091,174									3,966,968
Other liabilities			120,200									128,048
Total liabilities			14,984,273									14,831,212
Shareholders' equity			2,710,953									2,660,147
Total liabilities and shareholders' equity		$	17,695,226								$	17,491,359
Net interest spread									3.45	%								3.45	%
Net interest income and margin - FTE					$	146,359			3.60	%				$	143,026			3.61	%

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

		Nine Months Ended
		September 30, 2021										September 30, 2020
		Average			Income/			Yield/				Average			Income/			Yield/
(Dollars in thousands)		Balance			Expense			Rate				Balance			Expense			Rate
ASSETS
Earning assets
Interest-bearing balances due from banks		$	2,372,227		$	2,234			0.13	%		$	671,231		$	1,579			0.31	%
Federal funds sold			83			-			0.00	%			1,775			21			1.58	%
Investment securities - taxable			1,947,799			21,933			1.51	%			1,665,900			25,696			2.06	%
Investment securities - non-taxable - FTE			858,440			19,610			3.05	%			503,253			14,712			3.90	%
Loans receivable - FTE			10,532,411			435,758			5.53	%			11,519,706			472,635			5.48	%
Total interest-earning assets			15,710,960			479,535			4.08	%			14,361,865			514,643			4.79	%
Non-earning assets			1,594,442										1,655,973
Total assets		$	17,305,402									$	16,017,838
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts		$	8,607,728		$	12,289			0.19	%		$	7,544,763		$	30,272			0.54	%
Time deposits			1,131,538			7,492			0.89	%			1,847,833			22,242			1.61	%
Total interest-bearing deposits			9,739,266			19,781			0.27	%			9,392,596			52,514			0.75	%
Federal funds purchased			-			-			0.00	%			2,080			13			0.83	%
Securities sold under agreement to repurchase			153,677			399			0.35	%			150,020			959			0.85	%
FHLB borrowed funds			400,000			5,688			1.90	%			579,805			7,589			1.75	%
Subordinated debentures			370,615			14,373			5.19	%			369,846			14,801			5.35	%
Total interest-bearing liabilities			10,663,558			40,241			0.50	%			10,494,347			75,876			0.97	%
Non-interest bearing liabilities
Non-interest bearing deposits			3,848,302										2,904,159
Other liabilities			127,656										134,281
Total liabilities			14,639,516										13,532,787
Shareholders' equity			2,665,886										2,485,051
Total liabilities and shareholders' equity		$	17,305,402									$	16,017,838
Net interest spread									3.58	%									3.82	%
Net interest income and margin - FTE					$	439,294			3.74	%					$	438,767			4.08	%

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

		Quarter Ended															Nine Months Ended
(Dollars and shares in thousands,		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Sep. 30,			Sep. 30,
except per share data)		2021			2021			2021			2020			2020			2021			2020
EARNINGS, AS ADJUSTED
GAAP net income available to common shareholders (A)		$	74,992		$	79,070		$	91,602		$	81,794		$	69,320		$	245,664		$	132,654
Pre-tax adjustments
Fair value adjustment for marketable securities			(61	)		(1,250	)		(5,782	)		(4,271	)		1,350			(7,093	)		6,249
Special dividend from equity investment			(2,227	)		(2,200	)		(8,073	)		-			(3,181	)		(12,500	)		(10,185	)
Gain on securities			-			-			(219	)		-			-			(219	)		-
Recoveries on historic losses			-			-			(5,107	)		-			-			(5,107	)		-
Branch write-off expense			-			-			-			-			-			-			981
Outsourced special project expense			-			-			-			-			-			-			1,092
Merger and acquisition expenses			1,006			-			-			-			-			1,006			711
Total pre-tax adjustments			(1,282	)		(3,450	)		(19,181	)		(4,271	)		(1,831	)		(23,913	)		(1,152	)
Tax-effect of adjustments			(587	)		(888	)		(4,937	)		(1,116	)		(479	)		(6,412	)		(301	)
Total adjustments after-tax (B)			(695	)		(2,562	)		(14,244	)		(3,155	)		(1,352	)		(17,501	)		(851	)
Earnings, as adjusted (C)		$	74,297		$	76,508		$	77,358		$	78,639		$	67,968		$	228,163		$	131,803
Average diluted shares outstanding (D)			164,603			165,226			165,446			165,119			165,200			165,050			165,458
GAAP diluted earnings per share: (A/D)		$	0.46		$	0.48		$	0.55		$	0.50		$	0.42		$	1.49		$	0.80
Adjustments after-tax: (B/D)			(0.01	)		(0.02	)		(0.08	)		(0.02	)		(0.01	)		(0.11	)		-
Diluted earnings per common share, as adjusted, excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (C/D)		$	0.45		$	0.46		$	0.47		$	0.48		$	0.41		$	1.38		$	0.80
ANNUALIZED RETURN ON AVERAGE ASSETS
Return on average assets: (A/G)			1.68	%		1.81	%		2.22	%		1.97	%		1.66	%		1.90	%		1.11	%
Return on average assets excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROA, as adjusted) ((A+F)/G)			1.67	%		1.75	%		1.88	%		1.90	%		1.63	%		1.76	%		1.10	%
Return on average assets excluding intangible amortization: ((A+E)/(G-H))			1.81	%		1.95	%		2.39	%		2.13	%		1.80	%		2.04	%		1.21	%
Return on average assets excluding excess liquidity: (A/(G-I))			1.98	%		2.09	%		2.42	%		2.07	%		1.74	%		2.17	%		1.14	%
GAAP net income available to common shareholders (A)		$	74,992		$	79,070		$	91,602		$	81,794		$	69,320		$	245,664		$	132,654
Amortization of intangibles (D)			1,421			1,421			1,421			1,421			1,420			4,263			4,423
Amortization of intangibles after-tax (E)			1,055			1,055			1,055			1,049			1,049			3,165			3,268
Adjustments after-tax (F)			(695	)		(2,562	)		(14,244	)		(3,155	)		(1,352	)		(17,501	)		(851	)
Average assets (G)			17,695,226			17,491,359			16,718,890			16,493,066			16,594,495			17,305,402			16,017,838
Average goodwill, core deposits & other intangible assets (H)			1,000,175			1,001,598			1,003,011			1,004,432			1,005,864			1,001,585			1,004,065
Average interest bearing cash balance			2,914,785			2,577,101			1,610,463			1,029,047			926,754			2,372,227			671,231
Average historical interest bearing cash balance			225,000			225,000			225,000			225,000			225,000			225,000			225,000
Average excess cash balance (I)			2,689,785			2,352,101			1,385,463			804,047			701,754			2,147,227			446,231

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

		Quarter Ended																Nine Months Ended
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,				Sep. 30,			Sep. 30,			Sep. 30,
(Dollars in thousands)		2021			2021			2021			2020				2020			2021			2020
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY
Return on average common equity: (A/D)			10.97	%		11.92	%		14.15	%		12.72	%			10.97	%		12.32	%		7.13	%
Return on average common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROE, as adjusted) ((A+C)/D)			10.87	%		11.54	%		11.95	%		12.23	%			10.76	%		11.44	%		7.08	%
Return on average tangible common equity: (A/(D-E))			17.39	%		19.12	%		22.90	%		20.96	%			18.29	%		19.74	%		11.96	%
Return on average tangible common equity excluding intangible amortization: (B/(D-E))			17.64	%		19.38	%		23.16	%		21.22	%			18.56	%		19.99	%		12.26	%
Return on average tangible common equity excluding fair value adjustment for marketable securities, special dividend from equity investment, gain on securities, recoveries on historic losses, branch write-off expense, outsourced special project expense & merger and acquisition expenses: (ROTCE, as adjusted) ((A+C)/(D-E))			17.23	%		18.50	%		19.33	%		20.15	%			17.93	%		18.33	%		11.89	%
GAAP net income available to common shareholders (A)		$	74,992		$	79,070		$	91,602		$	81,794			$	69,320		$	245,664		$	132,654
Earnings excluding intangible amortization (B)			76,047			80,125			92,657			82,843				70,369			248,829			135,922
Adjustments after-tax (C)			(695	)		(2,562	)		(14,244	)		(3,155	)			(1,352	)		(17,501	)		(851	)
Average common equity (D)			2,710,953			2,660,147			2,625,618			2,557,251				2,513,792			2,665,886			2,485,051
Average goodwill, core deposits & other intangible assets (E)			1,000,175			1,001,598			1,003,011			1,004,432				1,005,864			1,001,585			1,004,065
EFFICIENCY RATIO & P5NR
Efficiency ratio: ((D-F)/(B+C+E))			42.26	%		41.09	%		36.60	%		39.64	%			39.56	%		39.86	%		40.40	%
Efficiency ratio, as adjusted: ((D-F-H)/(B+C+E-G))			42.29	%		42.07	%		40.68	%		40.67	%			40.08	%		41.67	%		40.25	%
Pre-tax net income to total revenue (net) (A/(B+C))			56.50	%		60.42	%		62.32	%		59.19	%			51.32	%		59.83	%		33.18	%
Pre-tax, pre-provision, net income (PPNR) (B+C-D)		$	98,201		$	99,390		$	120,498		$	107,669			$	104,377		$	318,089		$	299,287
P5NR (Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C)			56.50	%		57.66	%		62.32	%		59.19	%			59.28	%		58.95	%		58.41	%
Pre-tax net income (A)		$	98,201		$	104,142		$	120,498		$	107,669			$	90,377		$	322,841		$	170,034
Net interest income (B)			144,611			141,252			148,088			148,025				146,138			433,951			434,530
Non-interest income (C)			29,209			31,120			45,276			33,885				29,951			105,605			77,901
Non-interest expense (D)			75,619			72,982			72,866			74,241				71,712			221,467			213,144
Fully taxable equivalent adjustment (E)			1,748			1,774			1,821			1,778				1,576			5,343			4,237
Amortization of intangibles (F)			1,421			1,421			1,421			1,421				1,420			4,263			4,423
Adjustments:
Non-interest income:
Fair value adjustment for marketable securities		$	61		$	1,250		$	5,782		$	4,271			$	(1,350	)	$	7,093		$	(6,249	)
Gain (loss) on OREO			246			619			401			150				470			1,266			982
Gain (loss) on branches, equipment and other assets, net			(34	)		(23	)		(29	)		217				(27	)		(86	)		109
Special dividend from equity investment			2,227			2,200			8,073			-				3,181			12,500			10,185
Gain (loss) on securities			-			-			219			-				-			219			-
Recoveries on historic losses			-			-			5,107			-				-			5,107			-
Total non-interest income adjustments (G)		$	2,500		$	4,046		$	19,553		$	4,638			$	2,274		$	26,099		$	5,027
Non-interest expense:
Branch write-off expense		$	-		$	-		$	-		$	-			$	-		$	-		$	981
Merger and acquisition expenses			1,006			-			-			-				-			1,006			711
Outsourced special project expense			-			-			-			-				-			-			1,092
Total non-interest expense adjustments (H)		$	1,006		$	-		$	-		$	-			$	-		$	1,006		$	2,784

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

		Quarter Ended																Nine Months Ended
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,				Sep. 30,			Sep. 30,
(Dollars in thousands)		2021			2021			2021			2020			2020				2021			2020
ANNUALIZED NET INTEREST MARGIN
Net interest margin: (A/C)			3.60	%		3.61	%		4.02	%		4.00	%		3.92	%			3.74	%		4.08	%
Net interest margin, excluding PPP loans: (B/D)			3.43	%		3.54	%		3.87	%		3.97	%		3.98	%			3.61	%		4.12	%
Net interest income - FTE (A)		$	146,359		$	143,062		$	149,945		$	149,803		$	147,714			$	439,294		$	438,767
PPP loan interest & discount accretion income			10,162			7,802			11,878			8,841			5,943				29,842			10,393
Net interest income - FTE, excluding PPP loans (B)		$	136,197		$	135,260		$	138,067		$	140,962		$	141,771			$	409,452		$	428,374
Average interest-earning assets (C)		$	16,110,526		$	15,892,519		$	15,118,940		$	14,900,381		$	14,975,146			$	15,710,960		$	14,361,865
Average PPP loans			371,523			581,371			633,790			775,861			821,977				525,941			470,595
Average interest-earning assets, excluding PPP loans (D)		$	15,739,003		$	15,311,148		$	14,485,150		$	14,124,520		$	14,153,169			$	15,185,019		$	13,891,270
		Quarter Ended
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
		2021			2021			2021			2020			2020
TANGIBLE BOOK VALUE PER COMMON SHARE
Book value per common share: (A/B)		$	16.68		$	16.39		$	16.02		$	15.78		$	15.38
Tangible book value per common share: ((A-C-D)/B)			10.59			10.31			9.95			9.70			9.30
Total stockholders' equity (A)		$	2,736,062		$	2,696,189		$	2,645,204		$	2,605,758		$	2,540,799
End of period common shares outstanding (B)			164,008			164,488			165,141			165,095			165,163
Goodwill (C)			973,025			973,025			973,025			973,025			973,025
Core deposit and other intangibles (D)			26,466			27,886			29,307			30,728			32,149
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
Equity to assets: (B/A)			15.40	%		15.30	%		15.34	%		15.89	%		15.35	%
Tangible common equity to tangible assets: ((B-C-D)/(A-C-D))			10.36	%		10.20	%		10.12	%		10.41	%		9.88	%
Total assets (A)		$	17,765,056		$	17,627,192		$	17,240,241		$	16,398,804		$	16,549,758
Total stockholders' equity (B)			2,736,062			2,696,189			2,645,204			2,605,758			2,540,799
Goodwill (C)			973,025			973,025			973,025			973,025			973,025
Core deposit and other intangibles (D)			26,466			27,886			29,307			30,728			32,149

FAQ

What are the Q3 2021 earnings for Home BancShares (HOMB)?

Home BancShares reported a net income of $75.0 million for Q3 2021.

How much did Home BancShares' total revenue change in Q3 2021?

Total revenue for Q3 2021 was $173.8 million, slightly higher than $172.4 million in Q2 2021.

What is the non-performing assets ratio for Home BancShares (HOMB)?

Non-performing assets to total assets decreased to 0.29% as of September 30, 2021.

When is Home BancShares' acquisition of Happy Bancshares expected to close?

The acquisition is expected to close in Q1 2022, pending approvals.