GlobeNewswire Inc | Oct 15, 2020 08:15AM EDT

October 15, 2020

CONWAY, Ark., Oct. 15, 2020 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, released third quarter earnings today.

Highlights of the Third Quarter of 2020:

Metric Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019Net Income $69.3 $62.8 $507,000 $73.3 $72.8 million million million millionTotal Revenue (net) $176.1 $173.7 $162.7 $167.8 $167.7 million million million million millionIncome (loss) before income taxes $90.4 $82.1 ($2.4 $96.5 $100.0 million million million) million millionPre-tax net income, excludingprovision for credit losses and $104.4 $102.7 $92.2 $96.5 $100.0unfunded commitment expense (PPNR) million million million million million(non-GAAP)^(^1^)Pre-tax net income to total revenue 51.32% 47.25% -1.49% 57.49% 59.60%(net)P5[NR](Pre-tax, pre-provision,profit percentage) (PPNR to total 59.28% 59.15% 56.67% 57.49% 59.60%revenue (net)) (non-GAAP)^(^1^)ROA 1.66% 1.55% 0.01% 1.94% 1.93%ROA (pre-tax net income, excludingprovision for credit losses and 2.50% 2.53% 2.45% 2.56% 2.65%unfunded commitment expense)(non-GAAP)^(^1^)ROA, excluding provision for creditlosses and unfunded commitment 1.91% 1.92% 1.87% 1.94% 1.93%expense(non-GAAP)^(^1^)NIM 3.92% 4.11% 4.22% 4.24% 4.32%NIM, excluding PPP loans (non-GAAP)^ 3.98% 4.16% 4.22% 4.24% 4.32%(^1^)Purchase Accounting Accretion $7.0 $7.0 $7.6 $9.1 $8.5 million million million million millionROE 10.97% 10.27% 0.08% 11.71% 11.84%ROTCE (non-GAAP)^(1) 18.29% 17.40% 0.14% 19.55% 20.04%Diluted Earnings Per Share $0.42 $0.38 $0.00 $0.44 $0.44Non-Performing Assets to Total Assets 0.47% 0.39% 0.44% 0.43% 0.45%Common Equity Tier 1 Capital 12.6% 12.0% 11.5% 12.4% 12.2%Leverage 10.4% 10.3% 10.8% 11.3% 10.9%Tier 1 Capital 13.2% 12.6% 12.1% 13.0% 12.8%Total Risk-Based Capital 16.9% 16.2% 15.7% 16.4% 16.2%Allowance for Credit Losses to Total 2.12% 1.99% 2.01% 0.94% 0.97%LoansAllowance for Credit Losses to TotalLoans, excluding PPP loans (non-GAAP) 2.29% 2.15% 2.01% 0.94% 0.97%^(^1^)

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

To deliver record setting performance in Pre-Tax, Pre-Provision Net Revenue, while navigating a pandemic, CECL and economic volatility is even beyond my expectations, said John Allison, Chairman. Im now tracking a new measure of profitability that I think is extremely important that I call P5NR = Pre-Tax, Pre-Provision, Profit Percentage, which was 59.28% for the third quarter, up from 59.15% in the second quarter, Allison continued. While current economic times remain uncertain, one thing remains certain and that is the strong earnings power of Home BancShares, added Allison.

PPNR has received increased focus within the industry in recent months. Our ability to reach a record setting $104.4 million PPNR is certainly a highlight of this quarter, said Tracy French, Centennial Bank President and Chief Executive Officer.

Operating Highlights

Net income increased $6.5 million, or 10.3%, to $69.3 million for the three-month period ended September 30, 2020, from $62.8 million for the three-month period ended June 30, 2020, and income before income taxes (pre-tax net income) increased $8.3 million, or 10.1%, to $90.4 million for the three-month period ended September 30, 2020, from $82.1 million for the three-month period ended June 30, 2020. Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (PPNR) (non-GAAP) for the third quarter of 2020 was a record for the Company. PPNR increased $1.6 million, or 1.6%, to $104.4 million(1) for three-month period ended September 30, 2020, from $102.7 million(1) for the three-month period ended June 30, 2020. Total revenue for the third quarter of 2020 was also a record for the Company. Total revenue increased $2.4 million, or 1.4%, to $176.1 million for the three-month period ended September 30, 2020, from $173.7 million for the three-month period ended June 30, 2020. Pre-tax net income to total revenue (net) increased from 47.25% for the quarter ended June 30, 2020, to 51.32% for the quarter ended September 30, 2020, while pre-tax, pre-provision, profit percentage (P5NR) (non-GAAP), increased from 59.15%(1) for the second quarter 2020 to 59.28%(1) for the third quarter 2020.

During the third quarter of 2020, we recorded $14.0 million of total credit loss expense which was primarily due to the Company increasing reserves on deferred loans resulting from ongoing uncertainties related to the COVID-19 pandemic. Due to the inherent risk associated with deferred loans, management recorded an additional reserve on the deferred loans. As of September 30, 2020, we had deferrals of $933.8 million on 330 loans.

Our net interest margin was 3.92% for the three-month period ended September 30, 2020 compared to 4.11% for the three-month period ended June 30, 2020. The yield on loans was 5.24% and 5.43% for the three months ended September 30, 2020 and June 30, 2020, respectively, as average loans decreased from $11.79 billion to $11.76 billion. Additionally, the rate on interest bearing deposits decreased to 0.54% as of September 30, 2020 from 0.64% as of June 30, 2020, with average balances of $9.68 billion and $9.51 billion, respectively.

As of September 30, 2020, we had $848.7 million of Paycheck Protection Program (PPP) loans. 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, 2020 was 3.98%.(1) The PPP loans had an 18-basis point dilutive impact to the yield on loans. The PPP loans were dilutive to the net interest margin by 6 basis points.

The COVID-19 pandemic has created a significant amount of excess liquidity in the market. As a result of this excess liquidity, we had an increase of $173.7 million of average interest-bearing cash balances in the third quarter of 2020 compared to the second quarter of 2020. This excess liquidity diluted the net interest margin by 5 basis points.

During the third quarter of 2020, there was zero event interest income compared to event interest income of $1.5 million for the second quarter of 2020. This lowered the net interest margin by 4 basis points.

Purchase accounting accretion on acquired loans was $7.0 million for the three-month periods ended September 30, 2020 and June 30, 2020 and average purchase accounting loan discounts were $55.8 million and $62.8 million for the three-month periods ended September 30, 2020 and June 30, 2020, respectively. Net amortization of time deposit premiums was $30,000 per quarter and net average remaining time deposit premiums were $176,000 and $206,000 for the three-month periods ended September 30, 2020 and June 30, 2020, respectively.

The net interest margin experienced 14 basis points of noise for the three-months ended September 30, 2020, compared to the three months ended June 30, 2020 primarily resulting from a 5 basis point decline for excess liquidity, a 4 basis point decline for event interest income, a 3 basis point decline for investment premium amortizations, a 1 basis point decline for PPP loans, and a 1 basis point decline for adjustments as a result of the conversion of LH Finance, which we acquired on February 29, 2020.

Net interest income on a fully taxable equivalent basis decreased $2.4 million, or 1.6%, to $147.7 million for the three-month period ended September 30, 2020, from $150.1 million for the three-month period ended June 30, 2020. This decrease in net interest income for the three-month period ended September 30, 2020 was the result of a $4.8 million decrease in interest income, which was partially offset by a $2.4 million decrease in interest expense. The $4.8 million decrease in interest income was primarily the result of a $4.2 million decrease in loan interest income and a $625,000 net decrease in investment income. The $2.4 million decrease in interest expense was primarily the result of a $1.9 million decrease in interest expense on deposits and a $421,000 decrease in interest expense on FHLB borrowings.

The Company reported $30.0 million of non-interest income for the third quarter of 2020. The most important components of the third quarter non-interest income were $10.2 million from mortgage lending income, $8.5 million from other service charges and fees, $4.9 million from service charges on deposits accounts, $3.4 million from FHLB, FRB, FNBB & other equity investments and $2.6 million from other income. Non-interest income for the third quarter of 2020 included $3.2 million in dividends related to a special dividend from an equity investment and a $1.4 million adjustment for the decline in fair market value of marketable securities.

Mortgage lending income increased $4.0 million, or 64.3%, to $10.2 million for the three-month period ended September 30, 2020, from $6.2 million for the three-month period ended June 30, 2020. The housing market continues to benefit from the current low interest rate environment. The Company experienced an increase in secondary market loan sales of $50 million for the third quarter of 2020 compared to the second quarter of 2020. In addition, reduced hedging expenses led to higher margins on secondary market loan sales.

Non-interest expense for the third quarter of 2020 was $71.7 million. The most important components of the third quarter non-interest expense were $41.5 million from salaries and employee benefits, $15.7 million in other expense and $9.6 million in occupancy and equipment expenses. For the third quarter of 2020, our efficiency ratio was 39.56% compared to 44.93% for the second quarter of 2020.__________________(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release

Financial Condition

Total loans receivable were $11.69 billion at September 30, 2020 compared to $11.96 billion at June 30, 2020. Total deposits were $12.94 billion at September 30, 2020 compared to $13.18 billion at June 30, 2020. Total assets were $16.55 billion at September 30, 2020 compared to $16.90 billion at June 30, 2020.

During the third quarter 2020, the Company experienced approximately $264.3 million in organic loan decline. Centennial CFG experienced $72.4 million of organic loan decline and had loans of $1.68 billion at September 30, 2020. Our legacy footprint experienced $191.9 million in organic loan decline during the quarter.

Non-performing loans to total loans was 0.63% as of September 30, 2020 compared to 0.50% as of June 30, 2020. Non-performing assets to total assets increased from 0.39% as of June 30, 2020 to 0.47% as of September 30, 2020. For the third quarter of 2020, net charge-offs were $4.1 million compared to net charge-offs of $2.0 million for the second quarter of 2020.

Non-performing loans at September 30, 2020 were $23.3 million, $40.2 million, $489,000, $4.4 million and $5.4 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $73.8 million. Non-performing assets at September 30, 2020 were $24.8 million, $43.3 million, $523,000, $4.4 million and $5.4 million in the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $78.4 million.

The Companys allowance for credit losses on loans was $248.2 million at September 30, 2020, or 2.12% of total loans, compared to the allowance for loan losses of $238.3 million, or 1.99% of total loans, at June 30, 2020. The Companys allowance for credit losses on loans to total loans, excluding PPP loans (non-GAAP), was 2.29%(1) at September 30, 2020.As of September 30, 2020 and June 30, 2020, the Companys allowance for credit losses on loans and allowance for loan losses was 336.4% and 397.9% of its total non-performing loans, respectively. The increase in the allowance for credit losses at September 30, 2020 is primarily attributable to the ongoing uncertainties of the COVID-19 pandemic.

Stockholders equity was $2.54 billion at September 30, 2020 compared to $2.49 billion at June 30, 2020, an increase of approximately $48.7 million. The increase in stockholders equity is primarily associated with the $47.8 million increase in retained earnings. Book value per common share was $15.38 at September 30, 2020 compared to $15.09 at June 30, 2020. Tangible book value per common share (non-GAAP) was $9.30(1) at September 30, 2020 compared to $8.99(1) at June 30, 2020, an increase of 13.72% 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 77 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, October 15, 2020. We encourage all participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10147893/d8db6749be. 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: 10147893, which will be available until October 22, 2020 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.

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 measures--including net income (earnings), as adjusted; pre-tax net income, excluding provision for credit losses and unfunded commitment expense; pre-tax, pre-provision, profit percentage; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets (pre-tax net income, excluding provision for credit losses and unfunded commitment expense); return on average assets, excluding provision for credit losses and unfunded commitment expense; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity, as adjusted; efficiency ratio, as adjusted; net interest margin, excluding PPP loans; yield on loans, 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 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, including from the adoption of the current expected credit loss (CECL) model on January 1, 2020; 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, 2019, filed with the SEC on February 26, 2020, and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, filed with the SEC on August 5, 2020.

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) Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, (In thousands) 2020 2020 2020 2019 2019 ASSETS Cash and due from $ 144,197 $ 185,047 $ 147,200 $ 168,914 $ 171,492 banksInterest-bearingdeposits with other 899,140 1,030,609 424,235 321,687 270,804 banksCash and cash 1,043,337 1,215,656 571,435 490,601 442,296 equivalentsFederal funds sold - - - - 1,650 Investmentsecurities -available-for-sale, 2,361,900 2,238,005 2,098,000 2,083,838 2,087,508 net of allowance forcredit lossesLoans receivable 11,691,470 11,955,743 11,384,982 10,869,710 10,771,946 Allowance for credit (248,224 ) (238,340 ) (228,923 ) (102,122 ) (104,304 )lossesLoans receivable, 11,443,246 11,717,403 11,156,059 10,767,588 10,667,642 netBank premises and 280,364 279,498 281,795 280,103 277,966 equipment, netForeclosed assets 4,322 6,292 8,204 9,143 8,639 held for saleCash value of life 102,989 102,443 103,120 102,562 102,003 insuranceAccrued interest 72,599 80,274 50,295 45,086 47,557 receivableDeferred tax asset, 75,167 74,333 77,110 44,301 53,436 netGoodwill 973,025 973,025 973,025 958,408 958,408 Core deposit and 32,149 33,569 35,055 36,572 38,136 other intangiblesOther assets 160,660 174,908 177,634 213,845 216,694 Total assets $ 16,549,758 $ 16,895,406 $ 15,531,732 $ 15,032,047 $ 14,901,935 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits: Demand and $ 3,207,967 $ 3,413,727 $ 2,425,036 $ 2,367,091 $ 2,394,207 non-interest-bearingSavings andinterest-bearing 8,011,200 7,970,979 7,149,644 6,933,964 6,620,616 transaction accountsTime deposits 1,718,299 1,793,230 1,940,234 1,977,328 2,032,547 Total deposits 12,937,466 13,177,936 11,514,914 11,278,383 11,047,370 Federal funds - - - 5,000 50,000 purchasedSecurities soldunder agreements to 158,447 162,858 126,884 143,727 157,038 repurchaseFHLB and other 403,428 531,432 951,436 621,439 691,443 borrowed fundsAccrued interestpayable and other 139,485 161,095 138,479 102,410 117,332 liabilitiesSubordinated 370,133 369,939 369,748 369,557 369,363 debenturesTotal liabilities 14,008,959 14,403,260 13,101,461 12,520,516 12,432,546 Stockholders' equity Common stock 1,652 1,652 1,651 1,664 1,669 Capital surplus 1,520,103 1,518,631 1,516,151 1,537,091 1,542,858 Retained earnings 980,699 932,856 891,498 956,555 904,980 Accumulated othercomprehensive (loss) 38,345 39,007 20,971 16,221 19,882 incomeTotal stockholders' 2,540,799 2,492,146 2,430,271 2,511,531 2,469,389 equityTotal liabilitiesand stockholders' $ 16,549,758 $ 16,895,406 $ 15,531,732 $ 15,032,047 $ 14,901,935 equity

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 2020 2020 2020 2019 2019 2020 2019 thousands) Interest incomeLoans $ 154,787 $ 158,996 $ 158,148 $ 161,211 $ 167,470 $ 471,931 $ 497,134 Investment securitiesTaxable 7,227 8,693 9,776 9,707 10,343 25,696 31,699 Tax-exempt 4,367 3,698 3,114 3,260 3,193 11,179 9,755 Deposits - 252 211 1,116 949 1,068 1,579 4,239 other banksFederal - - 21 5 8 21 29 funds sold Totalinterest 166,633 171,598 172,175 175,132 182,082 510,406 542,856 income Interest expenseInterest on 13,200 15,116 24,198 26,823 29,566 52,514 87,281 depositsFederalfunds - - 13 33 21 13 21 purchasedFHLBborrowed 2,235 2,656 2,698 2,686 3,683 7,589 14,523 fundsSecuritiessold underagreements 237 260 462 652 628 959 1,892 torepurchaseSubordinated 4,823 4,899 5,079 5,155 5,207 14,801 15,705 debentures Totalinterest 20,495 22,931 32,450 35,349 39,105 75,876 119,422 expense Net interest 146,138 148,667 139,725 139,783 142,977 434,530 423,434 income Provisionfor credit 14,000 11,441 76,672 - - 102,113 1,325 loss - loansProvisionfor creditloss - - - 9,309 - - 9,309 - acquiredloansProvisionfor creditloss - - - 842 - - 842 - investmentsecuritiesTotal credit 14,000 11,441 86,823 - - 112,264 1,325 loss expenseNet interest income afterprovisionfor credit 132,138 137,226 52,902 139,783 142,977 322,266 422,109 losses Non-interest incomeServicecharges on 4,910 4,296 6,631 6,778 6,492 15,837 19,152 depositaccountsOtherservice 8,539 7,666 6,056 10,636 8,710 22,261 23,450 charges andfeesTrust fees 378 397 438 390 382 1,213 1,176 Mortgagelending 10,177 6,196 2,621 3,801 4,610 18,994 10,502 incomeInsurance 271 533 678 551 603 1,482 1,727 commissionsIncrease incash value 548 558 560 562 714 1,666 2,190 of lifeinsuranceDividendsfrom FHLB, 3,433 230 7,842 1,952 1,101 11,505 5,755 FRB, FNBB &otherGain on SBA - - 341 686 291 341 887 loans(Loss) gainon branches,equipment (27 ) 54 82 35 12 109 (38 )and otherassets, netGain on 470 235 277 159 334 982 598 OREO, netGain (loss)on - - - (2 ) - - - securities,netFair valueadjustmentfor (1,350 ) 919 (5,818 ) - - (6,249 ) - marketablesecuritiesOther income 2,602 3,939 3,219 2,481 1,500 9,760 6,088 Totalnon-interest 29,951 25,023 22,927 28,029 24,749 77,901 71,487 income Non-interest expenseSalaries andemployee 41,511 40,088 39,329 38,446 39,919 120,928 115,731 benefitsOccupancyand 9,566 10,172 8,873 8,729 9,047 28,611 26,723 equipmentDataprocessing 4,921 4,614 4,326 4,294 4,059 13,861 11,867 expenseOtheroperating 15,714 25,298 25,721 19,873 14,739 66,733 50,124 expenses Totalnon-interest 71,712 80,172 78,249 71,342 67,764 230,133 204,445 expense Income(loss) 90,377 82,077 (2,420 ) 96,470 99,962 170,034 289,151 beforeincome taxesIncome taxexpense 21,057 19,250 (2,927 ) 23,208 27,199 37,380 72,874 (benefit)Net income $ 69,320 $ 62,827 $ 507 $ 73,262 $ 72,763 $ 132,654 $ 216,277

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 andshares inthousands, 2020 2020 2020 2019 2019 2020 2019except pershare data) PER SHARE DATA Dilutedearnings per $ 0.42 $ 0.38 $ - $ 0.44 $ 0.44 $ 0.80 $ 1.29 common shareDilutedearnings percommonshare, as adjusted,excludingspecialdividendfrom equityinvestment,provisionfor creditlosses, fairvalueadjustmentformarketablesecurities,branchwrite-offexpense,unfundedcommitmentexpense,outsourcedspecial 0.47 0.47 0.43 0.44 0.44 1.37 1.30 projectexpense,merger andacquisitionexpenses,FDIC SmallBankAssessmentCredit,hurricaneexpense,Florida taxsavings andBOLIredemptiontax(non-GAAP)^(1)Basicearnings per 0.42 0.38 - 0.44 0.44 0.80 1.29 common shareDividendsper share - 0.1300 0.1300 0.1300 0.1300 0.1300 0.3900 0.3800 commonBook valueper common 15.38 15.09 14.72 15.10 14.80 15.38 14.80 shareTangiblebook valueper common 9.30 8.99 8.61 9.12 8.83 9.30 8.83 share(non-GAAP)^(1) STOCK INFORMATION Averagecommon 165,200 165,163 166,014 166,696 167,178 165,458 168,178 sharesoutstandingAveragediluted 165,200 165,163 166,014 166,696 167,178 165,458 168,178 sharesoutstandingEnd ofperiodcommon 165,163 165,206 165,148 166,373 166,860 165,163 166,860 sharesoutstanding ANNUALIZEDPERFORMANCE METRICS Return onaverage 1.66 % 1.55 % 0.01 % 1.94 % 1.93 % 1.11 % 1.92 %assetsReturn onaverageassetsexcluding specialdividendfrom equityinvestment,provisionfor creditlosses, fairvalueadjustmentformarketablesecurities,branchwrite-offexpense,unfundedcommitmentexpense,outsourcedspecialproject 1.88 % 1.93 % 1.88 % 1.94 % 1.96 % 1.90 % 1.94 %expense,merger andacquisitionexpenses,FDIC SmallBankAssessmentCredit,hurricaneexpense,Florida taxsavings andBOLIredemptiontax: (ROA,as adjusted)(non-GAAP)^(1)Return onaverageassetsexcluding 1.80 % 1.68 % 0.05 % 2.12 % 2.10 % 1.21 % 2.09 %intangibleamortization(non-GAAP)^(1)Return onaverage 10.97 % 10.27 % 0.08 % 11.71 % 11.84 % 7.13 % 12.12 %commonequityReturn onaveragecommonequity excludingspecialdividendfromequityinvestment,provisionfor creditlosses, fairvalueadjustmentformarketablesecurities,branchwrite-offexpense,unfundedcommitmentexpense,outsourcedspecialproject 12.39 % 12.77 % 11.48 % 11.68 % 12.08 % 12.22 % 12.27 %expense,merger andacquisitionexpenses,FDIC SmallBankAssessmentCredit,hurricaneexpense,Florida taxsavings andBOLIredemptiontax: (ROE,as adjusted)(non-GAAP)^(1)Return onaveragetangiblecommon 18.29 % 17.40 % 0.14 % 19.55 % 20.04 % 11.96 % 20.84 %equity(non-GAAP)^(1)Return onaveragetangiblecommonequity 18.56 % 17.70 % 0.44 % 19.86 % 20.36 % 12.26 % 21.18 %excludingintangibleamortization(non-GAAP)^(1)Return onaveragetangiblecommon equityexcludingspecialdividendfrom equityinvestment,provisionfor creditlosses, fairvalueadjustmentformarketablesecurities,branchwrite-offexpense,unfundedcommitmentexpense,outsourcedspecial 20.66 % 21.63 % 19.22 % 19.51 % 20.45 % 20.50 % 21.10 %projectexpense,merger andacquisitionexpenses,FDIC SmallBankAssessmentCredit,hurricaneexpense,Florida taxsavings andBOLIredemptiontax: (ROTCE,as adjusted)(non-GAAP)^(1) (1) Calculation of this metric and the reconciliation to GAAP are included inthe 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 andshares inthousands, 2020 2020 2020 2019 2019 2020 2019 except pershare data) Efficiency 39.56 % 44.93 % 46.82 % 41.26 % 39.16 % 43.69 % 40.03 %ratioEfficiencyratio, as 40.08 % 39.38 % 41.37 % 41.14 % 40.60 % 40.25 % 40.35 %adjusted(non-GAAP)^(1)Net interest 3.92 % 4.11 % 4.22 % 4.24 % 4.32 % 4.08 % 4.30 %margin - FTENet interestmargin - FTE,excluding PPP 3.98 % 4.16 % 4.22 % 4.24 % 4.32 % 4.12 % 4.30 %loans(non-GAAP)^(1)Fully taxableequivalent $ 1,576 $ 1,434 $ 1,227 $ 1,322 $ 1,247 $ 4,237 $ 3,933 adjustmentTotal revenue 176,089 173,690 162,652 167,812 167,726 512,431 494,921 (net)Pre-tax netincome,excludingprovision forcredit losses 104,377 102,732 92,178 96,470 99,962 299,287 290,476 and unfundedcommitmentexpense (PPNR)(non-GAAP)^(1)Pre-tax netincome to 51.32 % 47.25 % -1.49 % 57.49 % 59.60 % 33.18 % 58.42 %total revenue(net)P5[NR](Pre-tax,pre-provision,profit 59.28 % 59.15 % 56.67 % 57.49 % 59.60 % 58.41 % 58.69 %percentage)(PPNR to totalrevenue (net))(non-GAAP)^(1)Net income,excludingprovision forcredit losses 79,661 78,084 70,382 73,262 72,763 228,127 217,260 and unfundedcommitmentexpenseReturn onaverage assets(pre-tax netincome,excludingprovision for 2.50 % 2.53 % 2.45 % 2.56 % 2.65 % 2.50 % 2.58 %credit lossesand unfundedcommitmentexpense)(non-GAAP)^(1)Return onaverageassets,excludingprovision for 1.91 % 1.92 % 1.87 % 1.94 % 1.93 % 1.90 % 1.93 %credit lossesand unfundedcommitmentexpense(non-GAAP)^(1)Total purchaseaccounting 6,957 7,036 7,647 9,133 8,462 21,640 26,757 accretionAveragepurchase 55,835 62,822 69,365 91,869 112,623 62,662 122,121 accountingloan discounts OTHEROPERATING EXPENSES Advertising $ 902 $ 795 $ 1,226 $ 1,340 $ 1,201 $ 2,923 $ 3,347 Merger andacquisition - - 711 - - 711 - expensesAmortization 1,420 1,486 1,517 1,565 1,587 4,423 4,760 of intangiblesElectronicbanking 2,426 2,054 1,715 1,870 1,901 6,195 5,655 expenseDirectors' 429 412 424 396 380 1,265 1,206 feesDue from bankservice 259 239 223 289 272 721 792 chargesFDIC and state 1,607 1,846 1,548 1,635 (532 ) 5,001 2,833 assessmentHurricane - - - - - - 897 expenseInsurance 766 711 746 790 698 2,223 2,056 Legal and 1,235 1,278 919 1,633 1,414 3,432 3,384 accountingOtherprofessional 1,661 1,735 3,226 3,189 1,906 6,622 7,024 feesOperating 460 553 535 469 511 1,548 1,552 suppliesPostage 328 313 327 327 320 968 939 Telephone 321 310 324 312 289 955 898 Unfunded - 9,214 7,775 - - 16,989 - commitmentsOther expense 3,900 4,352 4,505 6,058 4,792 12,757 14,781 Total otheroperating $ 15,714 $ 25,298 $ 25,721 $ 19,873 $ 14,739 $ 66,733 $ 50,124 expenses (1) Calculation of this metric and the reconciliation to GAAP are included inthe schedules accompanying this release.

Home BancShares, Inc.Selected Financial Information(Unaudited) Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, (Dollars in 2020 2020 2020 2019 2019 thousands) BALANCE SHEET RATIOS Total loans to 90.37 % 90.73 % 98.87 % 96.38 % 97.51 %total depositsCommon equity 15.35 % 14.75 % 15.65 % 16.71 % 16.57 %to assetsTangible commonequity to 9.88 % 9.35 % 9.79 % 10.80 % 10.59 %tangible assets(non-GAAP)^(1) LOANS RECEIVABLE Real estate Commercial real estate loansNon-farm/ $ 4,342,212 $ 4,325,795 $ 4,357,007 $ 4,412,769 $ 4,375,970 non-residentialConstruction/land 1,748,857 1,818,151 1,892,394 1,776,689 1,827,454 developmentAgricultural 89,476 105,554 89,630 88,400 87,087 Residentialreal estate loansResidential 1-4 1,665,628 1,730,716 1,775,610 1,819,221 1,808,099 familyMultifamily 491,380 482,635 411,960 488,278 498,079 residentialTotal real 8,337,553 8,462,851 8,526,601 8,585,357 8,596,689 estateConsumer 883,568 851,344 852,174 511,909 469,741 Commercial and 2,161,818 2,228,816 1,759,752 1,528,003 1,479,724 industrialAgricultural 85,365 80,023 64,582 63,644 90,343 Other 223,166 332,709 181,873 180,797 135,449 Loans $ 11,691,470 $ 11,955,743 $ 11,384,982 $ 10,869,710 $ 10,771,946 receivable PaycheckProtectionProgram (PPP) 848,745 848,628 - - - loans (includedin total loansreceivable) ALLOWANCE FOR CREDIT LOSSES Balance,beginning of $ 238,340 $ 228,923 $ 102,122 $ 104,304 $ 106,066 periodImpact ofadopting ASC - - 43,988 - - 326Allowance forcredit losses - - 357 - - on acquiredloansLoans charged 4,599 2,582 4,265 2,631 2,302 offRecoveries ofloans 483 558 740 449 540 previouslycharged offNet loans(recovered)/ 4,116 2,024 3,525 2,182 1,762 charged offProvision forcredit loss - 14,000 11,441 76,672 - - loansProvision forcredit loss - - - 9,309 - - acquired loansTotal creditloss expenseexcludingprovision for 14,000 11,441 85,981 - - credit loss -investmentsecuritiesBalance, end of $ 248,224 $ 238,340 $ 228,923 $ 102,122 $ 104,304 period Net(recoveries)charge-offs to 0.14 % 0.07 % 0.13 % 0.08 % 0.06 %average totalloansAllowance forcredit losses 2.12 % 1.99 % 2.01 % 0.94 % 0.97 %to total loansAllowance forcredit lossesto total loans, 2.29 % 2.15 % 2.01 % 0.94 % 0.97 %excluding PPPloans NON-PERFORMING ASSETS Non-performing loansNon-accrual $ 65,148 $ 52,074 $ 52,131 $ 47,607 $ 48,640 loansLoans past due 8,635 7,824 7,760 7,238 9,964 90 days or moreTotalnon-performing 73,783 59,898 59,891 54,845 58,604 loansOthernon-performing assetsForeclosedassets held for 4,322 6,292 8,204 9,143 8,639 sale, netOthernon-performing 247 247 447 447 447 assetsTotal othernon-performing 4,569 6,539 8,651 9,590 9,086 assetsTotalnon-performing $ 78,352 $ 66,437 $ 68,542 $ 64,435 $ 67,690 assets Allowance forcredit lossesfor loans to 336.42 % 397.91 % 382.23 % 186.20 % 177.98 %non-performingloansNon-performingloans to total 0.63 % 0.50 % 0.53 % 0.50 % 0.54 %loansNon-performingassets to total 0.47 % 0.39 % 0.44 % 0.43 % 0.45 %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 September 30, 2020 June 30, 2020 Average Income/ Yield/ Average Income/ Yield/(Dollars in Balance Expense Rate Balance Expense Ratethousands) ASSETS Earning assets Interest-bearingbalances due $ 926,754 $ 252 0.11 % $ 753,093 $ 211 0.11 %from banksFederal funds 124 - 0.00 % - - 0.00 %soldInvestmentsecurities - 1,618,058 7,227 1.78 % 1,673,334 8,693 2.09 %taxableInvestmentsecurities - 672,067 5,731 3.39 % 461,640 4,890 4.26 %non-taxable -FTELoans receivable 11,758,143 154,999 5.24 % 11,790,398 159,238 5.43 %- FTETotalinterest-earning 14,975,146 168,209 4.47 % 14,678,465 173,032 4.74 %assetsNon-earning 1,619,349 1,640,741 assetsTotal assets $ 16,594,495 $ 16,319,206 LIABILITIES ANDSHAREHOLDERS' EQUITYLiabilities Interest-bearing liabilitiesSavings andinterest-bearing $ 7,937,412 $ 6,651 0.33 % $ 7,651,259 $ 7,818 0.41 %transactionaccountsTime deposits 1,745,279 6,549 1.49 % 1,855,626 7,298 1.58 %Totalinterest-bearing 9,682,691 13,200 0.54 % 9,506,885 15,116 0.64 %depositsSecurities soldunder agreement 157,172 237 0.60 % 154,628 260 0.68 %to repurchaseFHLB borrowed 464,799 2,235 1.91 % 652,354 2,656 1.64 %fundsSubordinated 370,038 4,823 5.19 % 369,846 4,899 5.33 %debenturesTotalinterest-bearing 10,674,700 20,495 0.76 % 10,683,713 22,931 0.86 %liabilitiesNon-interestbearing liabilitiesNon-interest 3,259,501 3,038,490 bearing depositsOther 146,502 137,062 liabilitiesTotal 14,080,703 13,859,265 liabilitiesShareholders' 2,513,792 2,459,941 equityTotalliabilities and $ 16,594,495 $ 16,319,206 shareholders'equityNet interest 3.71 % 3.88 %spreadNet interestincome and $ 147,714 3.92 % $ 150,101 4.11 %margin - FTE

Home BancShares, Inc.Consolidated Net Interest Margin(Unaudited) Nine Months Ended September 30, 2020 September 30, 2019 Average Income/ Yield/ Average Income/ Yield/(Dollars in Balance Expense Rate Balance Expense Ratethousands) ASSETS Earning assets Interest-bearingbalances due $ 671,231 $ 1,579 0.31 % $ 261,419 $ 4,239 2.17 %from banksFederal funds 1,775 21 1.58 % 1,510 29 2.57 %soldInvestmentsecurities - 1,665,900 25,696 2.06 % 1,647,781 31,699 2.57 %taxableInvestmentsecurities - 503,253 14,712 3.90 % 380,115 12,741 4.48 %non-taxable -FTELoans receivable 11,519,706 472,635 5.48 % 10,993,686 498,081 6.06 %- FTETotalinterest-earning 14,361,865 514,643 4.79 % 13,284,511 546,789 5.50 %assetsNon-earning 1,655,973 1,772,341 assetsTotal assets $ 16,017,838 $ 15,056,852 LIABILITIES ANDSHAREHOLDERS' EQUITYLiabilities Interest-bearing liabilitiesSavings andinterest-bearing $ 7,544,763 $ 30,272 0.54 % $ 6,634,809 $ 59,788 1.20 %transactionaccountsTime deposits 1,847,833 22,242 1.61 % 1,954,182 27,493 1.88 %Totalinterest-bearing 9,392,596 52,514 0.75 % 8,588,991 87,281 1.36 %depositsFederal funds 2,080 13 0.83 % 1,618 21 1.74 %purchasedSecurities soldunder agreement 150,020 959 0.85 % 146,277 1,892 1.73 %to repurchaseFHLB borrowed 579,805 7,589 1.75 % 945,351 14,523 2.05 %fundsSubordinated 369,846 14,801 5.35 % 369,078 15,705 5.69 %debenturesTotalinterest-bearing 10,494,347 75,876 0.97 % 10,051,315 119,422 1.59 %liabilitiesNon-interestbearing liabilitiesNon-interest 2,904,159 2,508,082 bearing depositsOther 134,281 110,715 liabilitiesTotal 13,532,787 12,670,112 liabilitiesShareholders' 2,485,051 2,386,740 equityTotalliabilities and $ 16,017,838 $ 15,056,852 shareholders'equityNet interest 3.82 % 3.91 %spreadNet interestincome and $ 438,767 4.08 % $ 427,367 4.30 %margin - FTE

Home BancShares, Inc.Non-GAAP Reconciliations(Unaudited) Quarter Ended Nine Months Ended (Dollars andshares in Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Sep. 30, Sep. 30, thousands,except per 2020 2020 2020 2019 2019 2020 2019 share data) EARNINGS, AS ADJUSTED GAAP netincomeavailable to $ 69,320 $ 62,827 $ 507 $ 73,262 $ 72,763 $ 132,654 $ 216,277 commonshareholders(A)Pre-tax adjustmentsSpecialdividend from (3,181 ) - (7,004 ) (861 ) - (10,185 ) (2,134 )equityinvestmentProvision for 14,000 11,441 86,823 - - 112,264 1,325 credit lossesFair valueadjustmentfor 1,350 (919 ) 5,818 - - 6,249 - marketablesecuritiesBranchwrite-off - 981 - - - 981 - expenseUnfundedcommitment - 9,214 7,775 - - 16,989 - expenseOutsourcedspecial - - 1,092 631 - 1,092 900 projectexpenseMerger andacquisition - - 711 - - 711 - expensesFDIC SmallBank - - - - (2,291 ) - (2,291 )AssessmentCreditHurricane - - - - - - 897 expensesTotal pre-tax 12,169 20,717 95,215 (230 ) (2,291 ) 128,101 (1,303 )adjustmentsTax-effect of 3,181 5,414 24,884 (59 ) (592 ) 33,479 (336 )adjustmentsAdjustments 8,988 15,303 70,331 (171 ) (1,699 ) 94,622 (967 )after-taxFlorida tax - - - - (497 ) - - savingsBOLIredemption - - - - 3,667 - 3,667 taxTotaladjustments 8,988 15,303 70,331 (171 ) 1,471 94,622 2,700 after-tax (B)Earnings, as $ 78,308 $ 78,130 $ 70,838 $ 73,091 $ 74,234 $ 227,276 $ 218,977 adjusted (C) Averagedilutedshares 165,200 165,163 166,014 166,696 167,178 165,458 168,178 outstanding(D) GAAP dilutedearnings per $ 0.42 $ 0.38 $ - $ 0.44 $ 0.44 $ 0.80 $ 1.29 share: (A/D)Adjustmentsafter-tax: (B 0.05 0.09 0.43 - - 0.57 0.01 /D)Dilutedearnings percommon share,as adjusted,excludingspecialdividend fromequityinvestment,provision forcreditlosses, fairvalueadjustmentformarketablesecurities,branchwrite-offexpense,unfunded $ 0.47 $ 0.47 $ 0.43 $ 0.44 $ 0.44 $ 1.37 $ 1.30 commitmentexpense,outsourcedspecialprojectexpense,merger andacquisitionexpenses,FDIC SmallBankAssessmentCredit,hurricaneexpense,Florida taxsavings andBOLIredemptiontax: (C/D) ANNUALIZEDRETURN ON AVERAGEASSETS Return onaverage 1.66% 1.55% 0.01% 1.94% 1.93% 1.11% 1.92% assets: (A/G)Return onaverageassetsexcludingspecialdividend fromequityinvestment,provision forcreditlosses, fairvalueadjustmentformarketablesecurities,branchwrite-offexpense,unfundedcommitment 1.88% 1.93% 1.88% 1.94% 1.96% 1.90% 1.94% expense,outsourcedspecialprojectexpense,merger andacquisitionexpenses,FDIC SmallBankAssessmentCredit,hurricaneexpense,Florida taxsavings andBOLIredemptiontax: (ROA, asadjusted)((A+F)/G)Return onaverageassets(pre-tax netincome,excluding 2.50% 2.53% 2.45% 2.56% 2.65% 2.50% 2.58% provision forcredit lossesand unfundedcommitmentexpense): (B/G)Return onaverageassets,excludingprovision for 1.91% 1.92% 1.87% 1.94% 1.93% 1.90% 1.93% credit lossesand unfundedcommitmentexpense: (C/G)Return onaverageassetsexcluding 1.80% 1.68% 0.05% 2.12% 2.10% 1.21% 2.09% intangibleamortization:((A+E)/(G-H)) GAAP netincomeavailable to $ 69,320 $ 62,827 $ 507 $ 73,262 $ 72,763 $ 132,654 $ 216,277 commonshareholders(A)Pre-tax netincome,excludingprovision for $ 104,377 $ 102,732 $ 92,178 $ 96,470 $ 99,962 $ 299,287 $ 290,476 credit lossesand unfundedcommitmentexpense (B)Net income,excludingprovision forcredit losses $ 79,661 $ 78,084 $ 70,382 $ 73,262 $ 72,763 $ 228,127 $ 217,260 and unfundedcommitmentexpense (C)Amortizationof 1,420 1,486 1,517 1,565 1,587 4,423 4,760 intangibles(D)Amortizationof 1,049 1,098 1,121 1,161 1,177 3,268 3,531 intangiblesafter-tax (E)Adjustments 8,988 15,303 70,331 (171 ) 1,471 94,622 2,700 after-tax (F)Average 16,594,495 16,319,206 15,133,475 14,944,368 14,993,232 16,017,838 15,056,852 assets (G)Averagegoodwill,core deposits 1,005,864 1,007,307 999,004 995,721 997,309 1,004,065 998,889 & otherintangibleassets (H)

Home BancShares, Inc.Non-GAAP Reconciliations(Unaudited) Quarter Ended Nine Months Ended (Dollars andshares in Sep. 30, Jun. 30, Mar. 31, Dec. 31 Sep. 30, Sep. 30, Sep. 30, thousands,except per share 2020 2020 2020 2019 2019 2020 2019 data) ANNUALIZEDRETURN ON AVERAGE COMMONEQUITY Return onaverage common 10.97% 10.27% 0.08% 11.71% 11.84% 7.13% 12.12% equity: (A/D)Return onaverage commonequity excludingspecial dividendfrom equityinvestment,provision forcredit losses,fair valueadjustment formarketablesecurities,branch write-offexpense,unfundedcommitment 12.39% 12.77% 11.48% 11.68% 12.08% 12.22% 12.27% expense,outsourcedspecial projectexpense, mergerand acquisitionexpenses, FDICSmall BankAssessmentCredit,hurricaneexpense, Floridatax savings andBOLI redemptiontax: (ROE, asadjusted) ((A+C)/D)Return onaverage tangible 18.29% 17.40% 0.14% 19.55% 20.04% 11.96% 20.84% common equity:(A/(D-E))Return onaverage tangiblecommon equityexcluding 18.56% 17.70% 0.44% 19.86% 20.36% 12.26% 21.18% intangibleamortization: (B/(D-E))Return onaverage tangiblecommon equityexcludingspecial dividendfrom equityinvestment,provision forcredit losses,fair valueadjustment formarketablesecurities,branch write-offexpense,unfundedcommitment 20.66% 21.63% 19.22% 19.51% 20.45% 20.50% 21.10% expense,outsourcedspecial projectexpense, mergerand acquisitionexpenses, FDICSmall BankAssessmentCredit,hurricaneexpense, Floridatax savings andBOLI redemptiontax: (ROTCE, asadjusted) ((A+C)/(D-E)) GAAP net incomeavailable to $ 69,320 $ 62,827 $ 507 $ 73,262 $ 72,763 $ 132,654 $ 216,277 commonshareholders (A)Earningsexcluding 70,369 63,925 1,628 74,423 73,940 135,922 219,808 intangibleamortization (B)Adjustments 8,988 15,303 70,331 (171 ) 1,471 94,622 2,700 after-tax (C)Average common 2,513,792 2,459,941 2,481,104 2,482,406 2,437,820 2,485,051 2,386,740 equity (D)Averagegoodwill, coredeposits & other 1,005,864 1,007,307 999,004 995,721 997,309 1,004,065 998,889 intangibleassets (E) EFFICIENCY RATIO Efficiencyratio: ((C-E)/ 39.56 % 44.93 % 46.82 % 41.26 % 39.16 % 43.69 % 40.03 %(A+B+D))Efficiencyratio, asadjusted: 40.08 % 39.38 % 41.37 % 41.14 % 40.60 % 40.25 % 40.35 %((C-E-G)/(A+B+D-F)) - - Net interest $ 146,138 $ 148,667 $ 139,725 $ 139,783 $ 142,977 $ 434,530 $ 423,434 income (A)Non-interest 29,951 25,023 22,927 28,029 24,749 77,901 71,487 income (B)Non-interest 71,712 80,172 78,249 71,342 67,764 230,133 204,445 expense (C)Fully taxableequivalent 1,576 1,434 1,227 1,322 1,247 4,237 3,933 adjustment (D)Amortization of 1,420 1,486 1,517 1,565 1,587 4,423 4,760 intangibles (E) Adjustments: Non-interest income:Special dividendfrom equity $ 3,181 $ - $ 7,004 $ 861 $ - $ 10,185 $ 2,134 investmentFair valueadjustment for (1,350 ) 919 (5,818 ) - - (6,249 ) - marketablesecuritiesGain (loss) on 470 235 277 159 334 982 598 OREOGain (loss) onbranches,equipment and (27 ) 54 82 35 12 109 (38 )other assets,netGain (loss) on - - - (2 ) - - - securitiesTotalnon-interest $ 2,274 $ 1,208 $ 1,545 $ 1,053 $ 346 $ 5,027 $ 2,694 incomeadjustments (F) Non-interest expense:Branch write-off $ - $ 981 $ - $ - $ - $ 981 $ - expenseUnfundedcommitment - 9,214 7,775 - - 16,989 - expenseFDIC Small BankAssessment - - - - (2,291 ) - (2,291 )CreditMerger Expenses - - 711 - - 711 - Hurricane damage - - - - - - 897 expenseOutsourcedspecial project - - 1,092 631 - 1,092 900 expenseTotalnon-interest $ - $ 10,195 $ 9,578 $ 631 $ (2,291 ) $ 19,773 $ (494 )expenseadjustments (G) ANNUALIZED NET INTEREST MARGIN Net interest 3.92% 4.11% 4.22% 4.24% 4.32% 4.08% 4.30% margin: A/CNet interestmargin,excluding PPP 3.98% 4.16% 4.22% 4.24% 4.32% 4.12% 4.30% loans(non-GAAP): B/D Net interest $ 147,714 $ 150,101 $ 140,952 $ 141,105 $ 144,224 $ 438,767 $ 427,367 income - FTE (A)PPP loaninterest & 5,943 4,450 - - - 10,393 - discountaccretion income Net interestincome - FTE,excluding PPP $ 141,771 $ 145,651 $ 140,952 $ 141,105 $ 144,224 $ 428,374 $ 427,367 loans (non-GAAP)(B) Averageinterest-earning $ 14,975,146 $ 14,678,465 $ 13,428,700 $ 13,188,508 $ 13,235,774 $ 14,361,865 $ 13,284,511 assets (C)Average PPP 821,977 585,946 - - - 470,595 - loansAverageinterest-earningassets, $ 14,153,169 $ 14,092,519 $ 13,428,700 $ 13,188,508 $ 13,235,774 $ 13,891,270 $ 13,284,511 excluding PPPloans (non-GAAP)(D)

Home BancShares, Inc. Non-GAAP Reconciliations (Unaudited) Quarter Ended Nine Months Ended (Dollars andshares in Sep. 30, Jun. 30, Mar. 31, Dec. 31 Sep. 30, Sep. 30, Sep. 30, thousands,except per 2020 2020 2020 2019 2019 2020 2019 share data) Pre-tax net $ 90,377 $ 82,077 $ (2,420 ) $ 96,470 $ 99,962 $ 170,034 $ 289,151 incomeProvision for 14,000 11,441 86,823 - - 112,264 1,325 credit lossesUnfundedcommitment - 9,214 7,775 - - 16,989 - expensePre-tax netincome,excludingprovision forcredit losses $ 104,377 $ 102,732 $ 92,178 $ 96,470 $ 99,962 $ 299,287 $ 290,476 and unfundedcommitmentexpense (PPNR)(A) Total revenue 176,089 173,690 162,652 167,812 167,726 512,431 494,921 (net) (B) Pre-tax netincome to 51.32% 47.25% -1.49 % 57.49% 59.60% 33.18% 58.42% total revenue(net)P5[NR](Pre-tax,pre-provision,profit 59.28% 59.15% 56.67% 57.49% 59.60% 58.41% 58.69% percentage)(PPNR to totalrevenue (net)) Quarter Ended Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, (Dollars in 2020 2020 2020 2019 2019 thousands) TANGIBLE BOOKVALUE PER COMMON SHARE Book value percommon share: $ 15.38 $ 15.09 $ 14.72 $ 15.10 $ 14.80 (A/B)Tangible bookvalue per 9.30 8.99 8.61 9.12 8.83 common share:((A-C-D)/B) Totalstockholders' $ 2,540,799 $ 2,492,146 $ 2,430,271 $ 2,511,531 $ 2,469,389 equity (A)End of periodcommon shares 165,163 165,206 165,148 166,373 166,860 outstanding(B)Goodwill (C) 973,025 973,025 973,025 958,408 958,408 Core depositand other 32,149 33,569 35,055 36,572 38,136 intangibles(D) TANGIBLECOMMON EQUITY TO TANGIBLEASSETS Equity to 15.35% 14.75% 15.65% 16.71% 16.57% assets: (B/A)Tangiblecommon equityto tangible 9.88% 9.35% 9.79% 10.80% 10.59% assets:((B-C-D)/(A-C-D)) Total assets $ 16,549,758 $ 16,895,406 $ 15,531,732 $ 15,032,047 $ 14,901,935 (A)Totalstockholders' 2,540,799 2,492,146 2,430,271 2,511,531 2,469,389 equity (B)Goodwill (C) 973,025 973,025 973,025 958,408 958,408 Core depositand other 32,149 33,569 35,055 36,572 38,136 intangibles(D)