GlobeNewswire Inc | Jul 15, 2021 08:15AM EDT

July 15, 2021

CONWAY, Ark., July 15, 2021 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, released quarterly earnings today.

Highlights of the Second Quarter of 2021:

Metric Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020Net Income $79.1million $91.6 $81.8 $69.3 $62.8 million million million millionTotal Revenue (net) $172.4 million $193.4 $181.9 $176.1 $173.7 million million million millionIncome (loss) before $104.1million $120.5 $107.7 $90.4 $82.1income taxes million million million millionPre-tax, pre-provision, $120.5 $107.7 $104.4 $102.7net income (PPNR) $99.4 million million million million million(non-GAAP)^(^1^)Pre-tax net income to 60.42% 62.32% 59.19% 51.32% 47.25%total revenue (net)P5[NR] (Pre-tax,pre-provision, profitpercentage) (PPNR to total 57.66% 62.32% 59.19% 59.28% 59.15%revenue (net)) (non-GAAP)^(1)ROA 1.81% 2.22% 1.97% 1.66% 1.55%NIM 3.61% 4.02% 4.00% 3.92% 4.11%NIM, excluding PPP loans 3.54% 3.87% 3.97% 3.98% 4.16%(non-GAAP)^(^1^)Purchase Accounting $5.8 million $5.5 $5.7 $7.0 $7.0Accretion million million million millionROE 11.92% 14.15% 12.72% 10.97% 10.27%ROTCE (non-GAAP)^(1) 19.12% 22.90% 20.96% 18.29% 17.40%Diluted Earnings Per Share $0.48 $0.55 $0.50 $0.42 $0.38Non-Performing Assets to 0.35% 0.38% 0.48% 0.47% 0.39%Total AssetsCommon Equity Tier 1 15.0% 14.3% 13.4% 12.6% 12.0%CapitalLeverage 10.9% 11.1% 10.8% 10.4% 10.3%Tier 1 Capital 15.6% 14.9% 14.0% 13.2% 12.6%Total Risk-Based Capital 19.5% 18.8% 17.8% 16.9% 16.2%Allowance for Credit 2.36% 2.25% 2.19% 2.12% 1.99%Losses to Total LoansAllowance for CreditLosses to Total Loans, 2.47% 2.40% 2.33% 2.28% 2.14%excluding PPP loans(non-GAAP)^(^1^)

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

An annualized look at gross revenue and pre-tax, pre-provision, net income (PPNR) shows us on a steady track for the last four years, said John Allison, Chairman. Net income for the six-month period ended June 30, 2021 was $170.7 million, or $1.03 earnings per share, which is a record for the Company, Allison stated. The continued stable performance our team delivers each quarter brings both a sense of pride and comfort during these unstable economic times, Allison continued.

Jamie Dimon recently stated that JP Morgan Chase is effectively stockpiling cash with plans to be patient because he believes in being prepared for higher rates and more inflation, quoted Tracy French, Centennial Bank President and Chief Executive Officer. One of the hardest things we do is maintain our discipline, and although loan growth might seem a little slow, we too plan to be patient as we do not intend to sell the future of our Company. We wont be one to reach out in the market for short term gain to create long term pain, French added.

Operating Highlights

Net income for the three-month period ended June30, 2021 was $79.1 million, or $0.48 earnings per share. Net income for the six-month period ended June 30, 2021 was $170.7 million, or $1.03 earnings per share, which is a record for the Company.

During the second quarter of 2021, the Company recorded a negative provision for unfunded commitments of $4.8 million, or $0.02 per share. This was primarily due to a single commercial & industrial loan for which a reserve was no longer considered necessary due to the borrowers current cash flow position. 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 June 30, 2021.

Our net interest margin was 3.61% for the three-month period ended June30, 2021 compared to 4.02% for the three-month period ended March31, 2021. The yield on loans was 5.40% and 5.56% for the three months ended June30, 2021 and March31, 2021, respectively, as average loans decreased from $11.02 billion to $10.54 billion. Additionally, the rate on interest bearing deposits decreased to 0.26% as of June30, 2021 from 0.33% as of March31, 2021, with average balances of $9.81 billion and $9.55 billion, respectively.

As of June30, 2021, we had $473.9 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 June 30, 2021 was 3.54%.(1) The PPP loans were accretive to the net interest margin by 7 basis points for the three-month period ended June 30, 2021 compared to 15 basis points for the three-month period ended March 31, 2021. This was primarily due to approximately $243.2 million of the Companys PPP loans being forgiven during the second quarter of 2021 as well as the acceleration of deferred fees for the loans that were forgiven. The $243.2 million of PPP loans forgiven during the second quarter of 2021 were partially offset by $70.7 million in new PPP loan originations and funding during the second quarter of 2021. The deferred fee income decreased from $10.4 million to $6.3 million for the three-month periods ended March 31, 2021 and June30, 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 $966.6 million of average interest-bearing cash balances in the second quarter of 2021 compared to the first quarter of 2021. This excess liquidity diluted the net interest margin by 23 basis points for the three-month period ended June 30, 2021.

Purchase accounting accretion on acquired loans was $5.8 million and $5.5 million and average purchase accounting loan discounts were $38.6 million and $43.9 million for the three-month periods ended June30, 2021 and March31, 2021, respectively. Net amortization of time deposit premiums was $30,000 per quarter and net average remaining time deposit premiums were $85,000 and $115,000 for the three-month periods ended June30, 2021 and March31, 2021, respectively.

Net interest income on a fully taxable equivalent basis was $143.1 million for the three-month period ended June30, 2021 and $149.9 million for the three-month period ended March31, 2021. This decrease in net interest income for the three-month period ended June30, 2021 was the result of an $8.2 million decrease in interest income, which was partially offset by a $1.3 million decrease in interest expense. The $8.2 million decrease in interest income was primarily the result of a $9.2 million decrease in loan interest income, which was partially offset by a $727,000 net increase in investment income and a $297,000 increase in interest-bearing balances due from banks. The $1.3 million decrease in interest expense was primarily the result of a decrease in interest expense on deposits.

The Company reported $31.1 million of non-interest income for the second quarter of 2021. The most important components of the second quarter non-interest income were $9.7 million from other service charges and fees, $6.2 million from mortgage lending income, $5.1 million from service charges on deposit accounts, $3.0 million from other income, $2.6 million from dividends from FHLB, FRB, FNBB and other, and a $1.3 million adjustment for the increase in fair market value of marketable securities. Included in the $2.6 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 second quarter of 2021 was $73.0 million. The most important components of the second quarter non-interest expense were $42.5 million from salaries and employee benefits, $15.6 million in other expense and $9.0 million in occupancy and equipment expenses. For the second quarter of 2021, our efficiency ratio was 41.08%.

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

Financial Condition

Total loans receivable were $10.20 billion at June30, 2021 compared to $10.78 billion at March31, 2021. Total deposits were $13.89 billion at June30, 2021 compared to $13.51 billion at March31, 2021. Total assets were $17.63 billion at June30, 2021 compared to $17.24 billion at March31, 2021.

During the second quarter 2021, the Company experienced approximately $579.3 million in loan decline. Centennial CFG experienced $41.1 million of organic loan growth and had loans of $1.56 billion at June30, 2021. Our legacy footprint experienced $447.9 million in organic loan decline and $172.5 million in PPP loan decline during the quarter.

Non-performing loans to total loans was 0.58% as of June30, 2021 compared to 0.59% as of March31, 2021. Non-performing assets to total assets decreased from 0.38% as of March31, 2021 to 0.35% as of June30, 2021. Net charge-offs were $2.5 million for both the first and second quarter of 2021.

Non-performing loans at June30, 2021 were $22.4 million, $31.8 million, $380,000, $1.6 million and $2.7 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $58.9 million. Non-performing assets at June30, 2021 were $23.2 million, $32.9 million, $424,000, $1.6 million and $2.8 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $60.9 million.

The Companys allowance for credit losses on loans was $240.5 million at June30, 2021, or 2.36% of total loans, compared to the allowance for credit losses of $242.9 million, or 2.25% of total loans, at March31, 2021. The Companys allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.47%(1) at June30, 2021. As of June30, 2021 and March31, 2021, the Companys allowance for credit losses on loans was 407.99% and 383.47% of its total non-performing loans, respectively.

Stockholders equity was $2.70 billion at June30, 2021 compared to $2.65 billion at March31, 2021, an increase of approximately $51.0 million. The increase in stockholders equity was primarily associated with the $56.0 million increase in retained earnings and a $9.7 million increase in accumulated other comprehensive income, which was partially offset by net stock repurchases and share-based compensation activity of $14.7 million. Book value per common share was $16.39 at June30, 2021 compared to $16.02 at March31, 2021. Tangible book value per common share (non-GAAP) was $10.31(1) at June30, 2021 compared to $9.95(1) at March31, 2021, an increase of 14.51% 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.

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, July 15, 2021. We encourage all participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10157552/e986b17690. 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: 10157552, which will be available until July 22, 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 Companys website at www.homebancshares.com under Investor Relations for 12 months.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Companys management uses these non-GAAP financial measuresincluding 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 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 assetsto 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 Companys 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 Companys 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 Companys 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 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 ability to identify, complete and successfully integrate new 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.

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 Companys common stock is traded through the NASDAQ Global Select Market under the symbol HOMB.

FOR MORE INFORMATION CONTACT:Donna TownsellDirector of Investor RelationsHome BancShares, Inc.(501) 328-4625

Home BancShares, Inc.Consolidated End of Period Balance Sheets(Unaudited)

Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, (In thousands) 2021 2021 2020 2020 2020 ASSETS Cash and due from $ 182,226 $ 218,814 $ 242,173 $ 144,197 $ 185,047 banksInterest-bearingdeposits with other 2,759,027 2,259,734 1,021,615 899,140 1,030,609 banksCash and cash 2,941,253 2,478,548 1,263,788 1,043,337 1,215,656 equivalentsInvestmentsecurities - available-for-sale,net ofallowance for credit 3,053,712 2,539,123 2,473,781 2,361,900 2,238,005 lossesLoans receivable 10,199,175 10,778,493 11,220,721 11,691,470 11,955,743 Allowance for credit (240,451 ) (242,932 ) (245,473 ) (248,224 ) (238,340 )lossesLoans receivable, 9,958,724 10,535,561 10,975,248 11,443,246 11,717,403 netBank premises and 278,502 278,620 278,614 280,364 279,498 equipment, netForeclosed assets 1,969 3,004 4,420 4,322 6,292 held for saleCash value of life 104,132 103,599 103,519 102,989 102,443 insuranceAccrued interest 48,725 55,495 60,528 72,599 80,274 receivableDeferred tax asset, 72,273 77,145 70,249 75,167 74,333 netGoodwill 973,025 973,025 973,025 973,025 973,025 Core deposit and 27,886 29,307 30,728 32,149 33,569 other intangiblesOther assets 166,991 166,814 164,904 160,660 174,908 Total assets $ 17,627,192 $ 17,240,241 $ 16,398,804 $ 16,549,758 $ 16,895,406 LIABILITIES AND STOCKHOLDERS? EQUITY Liabilities Deposits: Demand and $ 4,076,570 $ 3,859,722 $ 3,266,753 $ 3,207,967 $ 3,413,727 non-interest-bearingSavings andinterest-bearing 8,744,900 8,477,208 8,212,240 8,011,200 7,970,979 transaction accountsTime deposits 1,069,871 1,175,664 1,246,797 1,718,299 1,793,230 Total deposits 13,891,341 13,512,594 12,725,790 12,937,466 13,177,936 Securities soldunder agreements to 150,540 162,929 168,931 158,447 162,858 repurchaseFHLB and other 400,000 400,000 400,000 403,428 531,432 borrowed fundsAccrued interestpayable and other 118,415 148,999 127,999 139,485 161,095 liabilitiesSubordinated 370,707 370,515 370,326 370,133 369,939 debenturesTotal liabilities 14,931,003 14,595,037 13,793,046 14,008,959 14,403,260 Stockholders? equity Common stock 1,645 1,651 1,651 1,652 1,652 Capital surplus 1,501,615 1,516,286 1,520,617 1,520,103 1,518,631 Retained earnings 1,163,810 1,107,818 1,039,370 980,699 932,856 Accumulated other 29,119 19,449 44,120 38,345 39,007 comprehensive incomeTotal stockholders? 2,696,189 2,645,204 2,605,758 2,540,799 2,492,146 equityTotal liabilitiesand stockholders? $ 17,627,192 $ 17,240,241 $ 16,398,804 $ 16,549,758 $ 16,895,406 equity

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

Quarter Ended Six Months Ended Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Jun. 30, Jun. 30, (In 2021 2021 2020 2020 2020 2021 2020 thousands) Interest incomeLoans $ 141,684 $ 150,917 $ 153,407 $ 154,787 $ 158,996 $ 292,601 $ 317,144 Investment securitiesTaxable 7,185 6,253 6,900 7,227 8,693 13,438 18,469 Tax-exempt 4,905 5,071 4,979 4,367 3,698 9,976 6,812 Deposits - 707 410 270 252 211 1,117 1,327 other banksFederal - - - - - - 21 funds soldTotalinterest 154,481 162,651 165,556 166,633 171,598 317,132 343,773 income Interest expenseInterest on 6,434 7,705 10,596 13,200 15,116 14,139 39,314 depositsFederalfunds - - - - - - 13 purchasedFHLBborrowed 1,896 1,875 1,917 2,235 2,656 3,771 5,354 fundsSecuritiessold underagreements 107 190 208 237 260 297 722 torepurchaseSubordinated 4,792 4,793 4,810 4,823 4,899 9,585 9,978 debenturesTotalinterest 13,229 14,563 17,531 20,495 22,931 27,792 55,381 expense Net interest 141,252 148,088 148,025 146,138 148,667 289,340 288,392 income Provisionfor credit - - - 14,000 11,441 - 98,264 losses -loansProvisionfor creditloss - (4,752 ) - - - 9,214 (4,752 ) 16,989 unfundedcommitmentsTotal credit (4,752 ) - - 14,000 20,655 (4,752 ) 115,253 loss expense Net interestincome afterprovision 146,004 148,088 148,025 132,138 128,012 294,092 173,139 for creditlosses Non-interest incomeServicecharges on 5,116 5,002 5,544 4,910 4,296 10,118 10,927 depositaccountsOtherservice 9,659 7,608 8,425 8,539 7,666 17,267 13,722 charges andfeesTrust fees 444 522 420 378 397 966 835 Mortgagelending 6,202 8,167 10,071 10,177 6,196 14,369 8,817 incomeInsurance 478 492 366 271 533 970 1,211 commissionsIncrease incash value 537 502 534 548 558 1,039 1,118 of lifeinsuranceDividendsfrom FHLB, 2,646 8,609 967 3,433 230 11,255 8,072 FRB, FNBB &otherGain on SBA 1,149 - 304 - - 1,149 341 loans(Loss) gainon branches, equipmentandother (23 ) (29 ) 217 (27 ) 54 (52 ) 136 assets, netGain on 619 401 150 470 235 1,020 512 OREO, netGain onsecurities, - 219 - - - 219 - netFair valueadjustmentfor 1,250 5,782 4,271 (1,350 ) 919 7,032 (4,899 )marketablesecuritiesOther income 3,043 8,001 2,616 2,602 3,939 11,044 7,158 Totalnon-interest 31,120 45,276 33,885 29,951 25,023 76,396 47,950 income Non-interest expenseSalaries andemployee 42,462 42,059 43,022 41,511 40,088 84,521 79,417 benefitsOccupancyand 9,042 9,237 9,801 9,566 10,172 18,279 19,045 equipmentDataprocessing 5,893 5,870 5,171 4,921 4,614 11,763 8,940 expenseOtheroperating 15,585 15,700 16,247 15,714 16,084 31,285 34,030 expensesTotalnon-interest 72,982 72,866 74,241 71,712 70,958 145,848 141,432 expense Income(loss) 104,142 120,498 107,669 90,377 82,077 224,640 79,657 beforeincome taxesIncome taxexpense 25,072 28,896 25,875 21,057 19,250 53,968 16,323 (benefit)Net income $ 79,070 $ 91,602 $ 81,794 $ 69,320 $ 62,827 $ 170,672 $ 63,334

Home BancShares, Inc.Selected Financial Information(Unaudited)

Quarter Ended Six Months Ended (Dollars and shares in Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Jun. 30, Jun. 30, thousands,except per share data) 2021 2021 2020 2020 2020 2021 2020 PER SHARE DATA Diluted earnings per $ 0.48 $ 0.55 $ 0.50 $ 0.42 $ 0.38 $ 1.03 $ 0.38 common shareDiluted earnings percommon share, as adjusted,excluding fair valueadjustment formarketablesecurities,special dividend fromequityinvestment,gain on securities,recoveries onhistoric 0.46 0.47 0.48 0.41 0.38 0.93 0.39 losses, branchwrite-offexpense,outsourcedspecial project expense& mergerandacquisition expenses(non-GAAP)^(1)Basic earnings per 0.48 0.55 0.50 0.42 0.38 1.03 0.38 common shareDividends per share - 0.14 0.14 0.14 0.13 0.13 0.28 0.26 commonBook value per common 16.39 16.02 15.78 15.38 15.09 16.39 15.09 shareTangible book value percommon share (non-GAAP) 10.31 9.95 9.70 9.30 8.99 10.31 8.99 ^(1) STOCK INFORMATION Average common shares 164,781 165,257 165,119 165,200 165,163 165,018 165,588 outstandingAverage diluted shares 165,226 165,446 165,119 165,200 165,163 165,314 165,588 outstandingEnd of period common 164,488 165,141 165,095 165,163 165,206 164,488 165,206 shares outstanding ANNUALIZED PERFORMANCE METRICS Return on average 1.81 % 2.22 % 1.97 % 1.66 % 1.55 % 2.01 % 0.81 %assetsReturn on averageassets excluding fair value adjustmentfor marketablesecurities, specialdividend fromequityinvestment,gain on securities,recoveries onhistoriclosses, 1.75 % 1.88 % 1.90 % 1.63 % 1.55 % 1.81 % 0.82 %branch write-offexpense, outsourcedspecialprojectexpense & merger andacquisition expenses:(ROA, as adjusted)(non-GAAP)^(1)Return on averageassets excluding intangibleamortization (non-GAAP) 1.95 % 2.39 % 2.13 % 1.80 % 1.68 % 2.16 % 0.90 %^(1)Return on average 11.92 % 14.15 % 12.72 % 10.97 % 10.27 % 13.02 % 5.16 %common equityReturn on averagecommon equity excluding fair valueadjustment formarketable securities,special dividendfromequity investment, gainon securities,recoverieson historiclosses, branch 11.54 % 11.96 % 12.23 % 10.76 % 10.28 % 11.75 % 5.20 %write-off expense,outsourcedspecialproject expense &merger andacquisitionexpenses:(ROE, as adjusted)(non-GAAP)^(1)Return on average tangible common equity(non-GAAP)^(1) 19.12 % 22.90 % 20.96 % 18.29 % 17.40 % 20.98 % 8.68 %Return on averagetangible common equity excludingintangible amortization 19.38 % 23.16 % 21.22 % 18.56 % 17.70 % 21.24 % 8.98 %(non-GAAP)^(1)Return on averagetangible common equity excluding fairvalue adjustment formarketable securities,specialdividend fromequity investment, gainonsecurities,recoverieson historic losses,branch write-off 18.51 % 19.35 % 20.15 % 17.93 % 17.41 % 18.92 % 8.75 %expense,outsourcedspecial project expense& mergerandacquisitionexpenses: (ROTCE, asadjusted)(non-GAAP)^(1)

(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 Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Jun. 30, Jun. 30, (Dollars in 2021 2021 2020 2020 2020 2021 2020 thousands) Efficiency 41.08 % 36.60 % 39.64 % 39.56 % 39.67 % 38.71 % 40.83 %ratioEfficiencyratio, as 42.06 % 40.67 % 40.67 % 40.08 % 39.38 % 41.35 % 40.34 %adjusted(non-GAAP)^(1)Net interest 3.61 % 4.02 % 4.00 % 3.92 % 4.11 % 3.81 % 4.17 %margin - FTENet interestmargin - FTE, excluding PPPloans(non-GAAP)^(1) 3.54 % 3.87 % 3.97 % 3.98 % 4.16 % 3.70 % 4.19 %Fully taxableequivalent $ 1,810 $ 1,857 $ 1,778 $ 1,576 $ 1,434 $ 3,667 $ 2,661 adjustmentTotal revenue 172,372 193,364 181,910 176,089 173,690 365,736 336,342 (net)Pre-tax,pre-provision,net income 99,390 120,498 107,669 104,377 102,732 219,888 194,910 (PPNR)(non-GAAP)^(1)Pre-tax netincome to 60.42 % 62.32 % 59.19 % 51.32 % 47.25 % 61.42 % 23.68 %total revenue(net)P5[NR](Pre-tax,pre-provision, profitpercentage)(PPNR to totalrevenue (net)) 57.66 % 62.32 % 59.19 % 59.28 % 59.15 % 60.12 % 57.95 %(non-GAAP)^(1)Total purchaseaccounting 5,797 5,485 5,736 6,957 7,036 11,282 14,683 accretionAveragepurchase 38,568 43,940 49,563 55,835 62,822 41,218 66,105 accountingloan discounts OTHEROPERATING EXPENSES Advertising $ 1,194 $ 1,046 $ 1,076 $ 902 $ 795 $ 2,240 $ 2,021 Merger andacquisition - - - - - - 711 expensesAmortization 1,421 1,421 1,421 1,420 1,486 2,842 3,003 of intangiblesElectronicbanking 2,616 2,238 2,282 2,426 2,054 4,854 3,769 expenseDirectors? 414 383 359 429 412 797 836 feesDue from bankservice 273 249 254 259 239 522 462 chargesFDIC and state 1,108 1,363 1,493 1,607 1,846 2,471 3,394 assessmentInsurance 787 781 795 766 711 1,568 1,457 Legal and 1,058 846 790 1,235 1,278 1,904 2,197 accountingOtherprofessional 1,796 1,613 1,528 1,661 1,735 3,409 4,961 feesOperating 465 487 440 460 553 952 1,088 suppliesPostage 292 338 315 328 313 630 640 Telephone 365 346 347 321 310 711 634 Other expense 3,796 4,589 5,147 3,900 4,352 8,385 8,857 Total otheroperating $ 15,585 $ 15,700 $ 16,247 $ 15,714 $ 16,084 $ 31,285 $ 34,030 expenses

(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)

Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, (Dollars in 2021 2021 2020 2020 2020 thousands) BALANCE SHEET RATIOS Total loans to 73.42 % 79.77 % 88.17 % 90.37 % 90.73 %total depositsCommon equity 15.30 % 15.34 % 15.89 % 15.35 % 14.75 %to assetsTangible commonequity to 10.20 % 10.12 % 10.41 % 9.88 % 9.35 %tangible assets(non-GAAP)^(1) LOANS RECEIVABLE Real estate Commercial real estate loansNon-farm/ $ 4,144,375 $ 4,289,142 $ 4,429,060 $ 4,342,141 $ 4,325,795 non-residentialConstruction/land 1,541,482 1,612,973 1,562,298 1,748,928 1,818,151 developmentAgricultural 126,293 113,382 114,431 89,476 105,554 Residentialreal estate loansResidential 1-4 1,316,485 1,437,546 1,536,257 1,665,628 1,730,716 familyMultifamily 332,256 377,661 536,538 491,380 482,635 residentialTotal real 7,460,891 7,830,704 8,178,584 8,337,553 8,462,851 estateConsumer 824,938 839,819 864,690 883,568 851,344 Commercial and 1,612,826 1,794,787 1,896,442 2,161,818 2,228,816 industrialAgricultural 69,152 65,017 66,869 85,365 80,023 Other 231,368 248,166 214,136 223,166 332,709 Loans $ 10,199,175 $ 10,778,493 $ 11,220,721 $ 11,691,470 $ 11,955,743 receivable PaycheckProtectionProgram (PPP) loans (net ofdiscounts)(included intotal loans 473,894 646,382 675,225 825,362 819,154 receivable) ALLOWANCE FOR CREDIT LOSSES Balance,beginning of $ 242,932 $ 245,473 $ 248,224 $ 238,340 $ 228,923 periodLoans charged 3,023 3,047 3,040 4,599 2,582 offRecoveries ofloans 542 506 289 483 558 previouslycharged offNet loans 2,481 2,541 2,751 4,116 2,024 charged offProvision forcredit losses - - - - 14,000 11,441 loansBalance, end of $ 240,451 $ 242,932 $ 245,473 $ 248,224 $ 238,340 period Net charge-offsto average 0.09 % 0.09 % 0.10 % 0.14 % 0.07 %total loansAllowance forcredit losses 2.36 % 2.25 % 2.19 % 2.12 % 1.99 %to total loansAllowance forcredit lossesto total loans, 2.47 % 2.40 % 2.33 % 2.28 % 2.14 %excluding PPPloans NON-PERFORMING ASSETS Non-performing loansNon-accrual $ 55,269 $ 59,142 $ 64,528 $ 65,148 $ 52,074 loansLoans past due 3,667 4,209 9,610 8,635 7,824 90 days or moreTotalnon-performing 58,936 63,351 74,138 73,783 59,898 loansOthernon-performing assetsForeclosedassets held for 1,969 3,004 4,420 4,322 6,292 sale, netOthernon-performing - - - 247 247 assetsTotal othernon-performing 1,969 3,004 4,420 4,569 6,539 assetsTotalnon-performing $ 60,905 $ 66,355 $ 78,558 $ 78,352 $ 66,437 assets Allowance forcredit lossesfor loans to 407.99 % 383.47 % 331.10 % 336.42 % 397.91 %non-performingloansNon-performingloans to total 0.58 % 0.59 % 0.66 % 0.63 % 0.50 %loansNon-performingassets to total 0.35 % 0.38 % 0.48 % 0.47 % 0.39 %assets

(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 June30, 2021 March 31, 2021 Average Income/ Yield/ Average Income/ Yield/ (Dollars in Balance Expense Rate Balance Expense Rate thousands) ASSETS Earning assets Interest-bearingbalances due $ 2,577,101 $ 707 0.11 % $ 1,610,463 $ 410 0.10 %from banksFederal funds 51 - 0.00 % 119 - 0.00 %soldInvestmentsecurities - 1,909,485 7,185 1.51 % 1,637,061 6,253 1.55 %taxableInvestmentsecurities - 864,416 6,527 3.03 % 848,158 6,732 3.22 %non-taxable -FTELoans receivable 10,541,466 141,872 5.40 % 11,023,139 151,113 5.56 %- FTETotalinterest-earning 15,892,519 156,291 3.94 % 15,118,940 164,508 4.41 %assetsNon-earning 1,598,840 1,599,950 assetsTotal assets $ 17,491,359 $ 16,718,890 LIABILITIES ANDSHAREHOLDERS? EQUITYLiabilities Interest-bearing liabilitiesSavings andinterest-bearing $ 8,684,726 $ 3,960 0.18 % $ 8,338,791 $ 4,716 0.23 %transactionaccountsTime deposits 1,123,287 2,474 0.88 % 1,209,431 2,989 1.00 %Totalinterest-bearing 9,808,013 6,434 0.26 % 9,548,222 7,705 0.33 %depositsFederal funds - - 0.00 % - - 0.00 %purchasedSecurities soldunder agreement 157,570 107 0.27 % 159,697 190 0.48 %to repurchaseFHLB borrowed 400,000 1,896 1.90 % 400,000 1,875 1.90 %fundsSubordinated 370,613 4,792 5.19 % 370,421 4,793 5.25 %debenturesTotalinterest-bearing 10,736,196 13,229 0.49 % 10,478,340 14,563 0.56 %liabilitiesNon-interestbearing liabilitiesNon-interest 3,966,968 3,480,050 bearing depositsOther 128,048 134,882 liabilitiesTotal 14,831,212 14,093,272 liabilitiesShareholders? 2,660,147 2,625,618 equityTotalliabilities and $ 17,491,359 $ 16,718,890 shareholders?equityNet interest 3.45 % 3.85 %spreadNet interestincome and $ 143,062 3.61 % $ 149,945 4.02 %margin - FTE

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

Six Months Ended June30, 2021 June30, 2020 Average Income/ Yield/ Average Income/ Yield/ (Dollars in Balance Expense Rate Balance Expense Rate thousands) ASSETS Earning assets Interest-bearingbalances due $ 2,096,452 $ 1,117 0.11 % $ 542,066 $ 1,327 0.49 %from banksFederal funds 84 - 0.00 % 2,609 21 1.62 %soldInvestmentsecurities - 1,774,026 13,438 1.53 % 1,690,083 18,469 2.20 %taxableInvestmentsecurities - 856,332 13,259 3.12 % 417,919 8,981 4.32 %non-taxable -FTELoans receivable 10,780,972 292,985 5.48 % 11,399,178 317,636 5.60 %- FTETotalinterest-earning 15,507,866 320,799 4.17 % 14,051,855 346,434 4.96 %assetsNon-earning 1,599,393 1,674,486 assetsTotal assets $ 17,107,259 $ 15,726,341 LIABILITIES ANDSHAREHOLDERS? EQUITYLiabilities Interest-bearing liabilitiesSavings andinterest-bearing $ 8,512,714 $ 8,677 0.21 % $ 7,346,281 $ 23,621 0.65 %transactionaccountsTime deposits 1,166,121 5,462 0.94 % 1,899,673 15,693 1.66 %Totalinterest-bearing 9,678,835 14,139 0.29 % 9,245,954 39,314 0.86 %depositsFederal funds - - 0.00 % 3,132 13 0.83 %purchasedSecurities soldunder agreement 158,628 297 0.38 % 146,404 722 0.99 %to repurchaseFHLB borrowed 400,000 3,771 1.90 % 637,940 5,354 1.69 %fundsSubordinated 370,518 9,585 5.22 % 369,749 9,978 5.43 %debenturesTotalinterest-bearing 10,607,981 27,792 0.53 % 10,403,179 55,381 1.07 %liabilitiesNon-interestbearing liabilitiesNon-interest 3,724,854 2,724,537 bearing depositsOther 131,446 128,102 liabilitiesTotal 14,464,281 13,255,818 liabilitiesShareholders? 2,642,978 2,470,523 equityTotalliabilities and $ 17,107,259 $ 15,726,341 shareholders?equityNet interest 3.64 % 3.89 %spreadNet interestincome and $ 293,007 3.81 % $ 291,053 4.17 %margin - FTE

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

Quarter Ended Six Months Ended (Dollars and shares in Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Jun. 30, Jun. 30, thousands,except per share data) 2021 2021 2020 2020 2020 2021 2020 EARNINGS, AS ADJUSTED GAAP net incomeavailable to common $ 79,070 $ 91,602 $ 81,794 $ 69,320 $ 62,827 $ 170,672 $ 63,334 shareholders (A)Pre-tax adjustments Fair value adjustmentfor marketable (1,250 ) (5,782 ) (4,271 ) 1,350 (919 ) (7,032 ) 4,899 securitiesSpecial dividend from (2,200 ) (8,073 ) - (3,181 ) - (10,273 ) (7,004 )equity investmentGain on securities - (219 ) - - - (219 ) - Recoveries on historic - (5,107 ) - - - (5,107 ) - lossesBranch write-off - - - - 981 - 981 expenseOutsourced special - - - - - - 1,092 project expenseMerger and acquisition - - - - - - 711 expensesTotal pre-tax (3,450 ) (19,181 ) (4,271 ) (1,831 ) 62 (22,631 ) 679 adjustmentsTax-effect of (902 ) (5,013 ) (1,116 ) (479 ) 16 (5,915 ) 177 adjustmentsTotal adjustments (2,548 ) (14,168 ) (3,155 ) (1,352 ) 46 (16,716 ) 502 after-tax (B)Earnings, as adjusted $ 76,522 $ 77,434 $ 78,639 $ 67,968 $ 62,873 $ 153,956 $ 63,836 (C) Average diluted shares 165,226 165,446 165,119 165,200 165,163 165,314 165,588 outstanding (D) GAAP diluted earnings $ 0.48 $ 0.55 $ 0.50 $ 0.42 $ 0.38 $ 1.03 $ 0.38 per share: (A/D)Adjustments after-tax: (0.02 ) (0.08 ) (0.02 ) (0.01 ) - (0.10 ) 0.01 (B/D)Diluted earnings per common share, asadjusted, excludingfair valueadjustmentformarketable securities,special dividendfromequity investment, gainonsecurities,recoveries $ 0.46 $ 0.47 $ 0.48 $ 0.41 $ 0.38 $ 0.93 $ 0.39 on historic losses,branchwrite-offexpense, outsourcedspecialprojectexpense & merger andacquisitionexpenses:(C/D) ANNUALIZED RETURN ON AVERAGE ASSETS Return on average 1.81 % 2.22 % 1.97 % 1.66 % 1.55 % 2.01 % 0.81 %assets: (A/G)Return on average assets excluding fairvalue adjustment formarketablesecurities,special dividend fromequityinvestment,gain on securities,recoverieson historiclosses, branch 1.75 % 1.88 % 1.90 % 1.63 % 1.55 % 1.81 % 0.82 %write-offexpense,outsourced specialprojectexpense &merger andacquisitionexpenses:(ROA, as adjusted)((A+F)/G)Return on averageassets excluding intangibleamortization: ((A+E)/ 1.95 % 2.39 % 2.13 % 1.80 % 1.68 % 2.16 % 0.90 %(G-H)) GAAP net incomeavailable to common $ 79,070 $ 91,602 $ 81,794 $ 69,320 $ 62,827 $ 170,672 $ 63,334 shareholders (A)Amortization of 1,421 1,421 1,421 1,420 1,486 2,842 3,003 intangibles (D)Amortization ofintangibles after-tax 1,049 1,049 1,049 1,049 1,098 2,098 2,218 (E)Adjustments after-tax (2,548 ) (14,168 ) (3,155 ) (1,352 ) 46 (16,716 ) 502 (F)Average assets (G) 17,491,359 16,718,890 16,493,066 16,594,495 16,319,206 17,107,259 15,726,341 Average goodwill, core deposits & otherintangible assets (H) 1,001,598 1,003,011 1,004,432 1,005,864 1,007,307 1,002,301 1,003,156

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

Quarter Ended Six Months Ended Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Jun. 30, Jun. 30, (Dollars in 2021 2021 2020 2020 2020 2021 2020 thousands) ANNUALIZED RETURN ONAVERAGE COMMON EQUITY Return on average 11.92 % 14.15 % 12.72 % 10.97 % 10.27 % 13.02 % 5.16 %common equity: (A/D)Return on averagecommon equity excluding fair valueadjustment formarketablesecurities, specialdividendfromequity investment,gain on securities,recoveriesonhistoric losses, 11.54 % 11.96 % 12.23 % 10.76 % 10.28 % 11.75 % 5.20 %branch write-offexpense,outsourcedspecial projectexpense & mergerandacquisitionexpenses: (ROE, asadjusted) ((A+C)/D)Return on averagetangible common 19.12 % 22.90 % 20.96 % 18.29 % 17.40 % 20.98 % 8.68 %equity: (A/(D-E))Return on averagetangible common equityexcluding intangibleamortization: (B/ 19.38 % 23.16 % 21.22 % 18.56 % 17.70 % 21.24 % 8.98 %(D-E))Return on averagetangible common equity excludingfair valueadjustment formarketablesecurities,specialdividend from equityinvestment, gainonsecurities,recoveries onhistoric losses, 18.51 % 19.35 % 20.15 % 17.93 % 17.41 % 18.92 % 8.75 %branchwrite-offexpense, outsourcedspecial projectexpense& mergerand acquisitionexpenses:(ROTCE,as adjusted) ((A+C)/(D-E)) GAAP net incomeavailable to common $ 79,070 $ 91,602 $ 81,794 $ 69,320 $ 62,827 $ 170,672 $ 63,334 shareholders (A)Earnings excludingintangible 80,119 92,651 82,843 70,369 63,925 172,770 65,553 amortization (B)Adjustments (2,548 ) (14,168 ) (3,155 ) (1,352 ) 46 (16,716 ) 502 after-tax (C)Average common 2,660,147 2,625,618 2,557,251 2,513,792 2,459,941 2,642,978 2,470,523 equity (D)Average goodwill,core deposits & 1,001,598 1,003,011 1,004,432 1,005,864 1,007,307 1,002,301 1,003,156 other intangibleassets (E) EFFICIENCY RATIO & P5NR Efficiency ratio: 41.08 % 36.60 % 39.64 % 39.56 % 39.67 % 38.71 % 40.83 %((D-F)/(B+C+E))Efficiency ratio, asadjusted: ((D-F-H)/ 42.06 % 40.67 % 40.67 % 40.08 % 39.38 % 41.35 % 40.34 %(B+C+E-G)) Pre-tax net incometo total revenue 60.42 % 62.32 % 59.19 % 51.32 % 47.25 % 61.42 % 23.68 %(net) (A/(B+C))Pre-tax,pre-provision, net $ 99,390 $ 120,498 $ 107,669 $ 104,377 $ 102,732 $ 219,888 $ 194,910 income (PPNR)(B+C-D)P5NR (Pre-tax,pre-provision, profitpercentage) PPNR tototal revenue (net) 57.66 % 62.32 % 59.19 % 59.28 % 59.15 % 60.12 % 57.95 %(B+C-D)/(B+C) Pre-tax net income $ 104,142 $ 120,498 $ 107,669 $ 90,377 $ 82,077 $ 224,640 $ 79,657 (A)Net interest income 141,252 148,088 148,025 146,138 148,667 289,340 288,392 (B)Non-interest income 31,120 45,276 33,885 29,951 25,023 76,396 47,950 (C)Non-interest expense 72,982 72,866 74,241 71,712 70,958 145,848 141,432 (D)Fully taxableequivalent 1,810 1,857 1,778 1,576 1,434 3,667 2,661 adjustment (E)Amortization of 1,421 1,421 1,421 1,420 1,486 2,842 3,003 intangibles (F) Adjustments: Non-interest income: Fair valueadjustment for $ 1,250 $ 5,782 $ 4,271 $ (1,350 ) $ 919 $ 7,032 $ (4,899 )marketablesecuritiesGain (loss) on OREO 619 401 150 470 235 1,020 512 Gain (loss) onbranches, equipment (23 ) (29 ) 217 (27 ) 54 (52 ) 136 and other assets,netSpecial dividendfrom equity 2,200 8,073 - 3,181 - 10,273 7,004 investmentGain (loss) on - 219 - - - 219 - securitiesRecoveries on - 5,107 - - - 5,107 - historic lossesTotal non-interestincome adjustments $ 4,046 $ 19,553 $ 4,638 $ 2,274 $ 1,208 $ 23,599 $ 2,753 (G) Non-interest expense:Branch write-off $ - $ - $ - $ - $ 981 $ - $ 981 expenseMerger Expenses - - - - - - 711 Outsourced special - - - - - - 1,092 project expenseTotal non-interestexpense adjustments $ - $ - $ - $ - $ 981 $ - $ 2,784 (H)

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

Quarter Ended Six Months Ended Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Jun. 30, Jun. 30, (Dollars in 2021 2021 2020 2020 2020 2021 2020 thousands) ANNUALIZED NET INTEREST MARGIN Net interest 3.61 % 4.02 % 4.00 % 3.92 % 4.11 % 3.81 % 4.17 %margin: (A/C)Net interestmargin, excluding PPP loans:(B/D) 3.54 % 3.87 % 3.97 % 3.98 % 4.16 % 3.70 % 4.19 % Net interest $ 143,062 $ 149,945 $ 149,803 $ 147,714 $ 150,101 $ 293,007 $ 291,053 income - FTE (A)PPP loan interest& discount accretionincome 7,802 11,878 8,841 5,943 4,450 19,680 4,450 Net interestincome - FTE, excludingPPP loans (B) $ 135,260 $ 138,067 $ 140,962 $ 141,771 $ 145,651 $ 273,327 $ 286,603 Averageinterest-earning $ 15,892,519 $ 15,118,940 $ 14,900,381 $ 14,975,146 $ 14,678,465 $ 15,507,866 $ 14,051,855 assets (C)Average PPP loans 581,371 633,790 775,861 821,977 585,946 607,436 292,973 Averageinterest-earning assets, excludingPPP loans (D) $ 15,311,148 $ 14,485,150 $ 14,124,520 $ 14,153,169 $ 14,092,519 $ 14,900,430 $ 13,758,882 Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, 2021 2021 2020 2020 2020 TANGIBLE BOOKVALUE PER COMMON SHARE Book value percommon share: (A/ $ 16.39 $ 16.02 $ 15.78 $ 15.38 $ 15.09 B)Tangible bookvalue per common share:((A-C-D)/B) 10.31 9.95 9.70 9.30 8.99 Totalstockholders? $ 2,696,189 $ 2,645,204 $ 2,605,758 $ 2,540,799 $ 2,492,146 equity (A)End of periodcommon shares 164,488 165,141 165,095 165,163 165,206 outstanding (B)Goodwill (C) 973,025 973,025 973,025 973,025 973,025 Core deposit andother intangibles 27,886 29,307 30,728 32,149 33,569 (D) TANGIBLE COMMONEQUITY TO TANGIBLEASSETS Equity to assets: 15.30 % 15.34 % 15.89 % 15.35 % 14.75 % (B/A)Tangible commonequity to tangible assets:((B-C-D)/(A-C-D)) 10.20 % 10.12 % 10.41 % 9.88 % 9.35 % Total assets (A) $ 17,627,192 $ 17,240,241 $ 16,398,804 $ 16,549,758 $ 16,895,406 Totalstockholders? 2,696,189 2,645,204 2,605,758 2,540,799 2,492,146 equity (B)Goodwill (C) 973,025 973,025 973,025 973,025 973,025 Core deposit andother intangibles 27,886 29,307 30,728 32,149 33,569 (D)