HOMB Announces Record Third Quarter

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 2019
Net Income	$69.3 million	$62.8 million	$507,000	$73.3 million	$72.8 million
Total Revenue (net)	$176.1 million	$173.7 million	$162.7 million	$167.8 million	$167.7 million
Income (loss) before income taxes	$90.4 million	$82.1 million	($2.4 million)	$96.5 million	$100.0 million
Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (PPNR) (non-GAAP)(1)	$104.4 million	$102.7 million	$92.2 million	$96.5 million	$100.0 million
Pre-tax net income to total revenue (net)	51.32%	47.25%	-1.49%	57.49%	59.60%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)	59.28%	59.15%	56.67%	57.49%	59.60%
ROA	1.66%	1.55%	0.01%	1.94%	1.93%
ROA (pre-tax net income, excluding provision for credit losses and unfunded commitment expense) (non-GAAP)(1)	2.50%	2.53%	2.45%	2.56%	2.65%
ROA, excluding provision for credit losses and unfunded commitment expense (non-GAAP)(1)	1.91%	1.92%	1.87%	1.94%	1.93%
NIM	3.92%	4.11%	4.22%	4.24%	4.32%
NIM, excluding PPP loans (non-GAAP)(1)	3.98%	4.16%	4.22%	4.24%	4.32%
Purchase Accounting Accretion	$7.0 million	$7.0 million	$7.6 million	$9.1 million	$8.5 million
ROE	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	$0.44
Non-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 Loans	2.12%	1.99%	2.01%	0.94%	0.97%
Allowance for Credit Losses to Total Loans, excluding PPP loans (non-GAAP)(1)	2.29%	2.15%	2.01%	0.94%	0.97%

⁽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. “I’m now tracking a new measure of profitability that I think is extremely important that I call ‘P5_NR = 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 (“P5_NR”) (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 Company’s 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 Company’s 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 Company’s 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.   
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(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 Company’s 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 Company’s primary business operating results. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

General

This release may contain forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements 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 Company’s common stock is traded through the NASDAQ Global Select Market under the symbol “HOMB.”

FOR MORE INFORMATION CONTACT:
Donna Townsell
Director of Investor Relations
Home BancShares, Inc.
[phone]

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 banks		$	144,197			$	185,047			$	147,200			$	168,914			$	171,492
Interest-bearing deposits with other banks			899,140				1,030,609				424,235				321,687				270,804
Cash and cash equivalents			1,043,337				1,215,656				571,435				490,601				442,296
Federal funds sold			-				-				-				-				1,650
Investment securities - available-for-sale, net of allowance for credit losses			2,361,900				2,238,005				2,098,000				2,083,838				2,087,508
Loans receivable			11,691,470				11,955,743				11,384,982				10,869,710				10,771,946
Allowance for credit losses			(248,224	)			(238,340	)			(228,923	)			(102,122	)			(104,304	)
Loans receivable, net			11,443,246				11,717,403				11,156,059				10,767,588				10,667,642
Bank premises and equipment, net			280,364				279,498				281,795				280,103				277,966
Foreclosed assets held for sale			4,322				6,292				8,204				9,143				8,639
Cash value of life insurance			102,989				102,443				103,120				102,562				102,003
Accrued interest receivable			72,599				80,274				50,295				45,086				47,557
Deferred tax asset, net			75,167				74,333				77,110				44,301				53,436
Goodwill			973,025				973,025				973,025				958,408				958,408
Core deposit and other intangibles			32,149				33,569				35,055				36,572				38,136
Other 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 non-interest-bearing		$	3,207,967			$	3,413,727			$	2,425,036			$	2,367,091			$	2,394,207
Savings and interest-bearing transaction accounts			8,011,200				7,970,979				7,149,644				6,933,964				6,620,616
Time 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 purchased			-				-				-				5,000				50,000
Securities sold under agreements to repurchase			158,447				162,858				126,884				143,727				157,038
FHLB and other borrowed funds			403,428				531,432				951,436				621,439				691,443
Accrued interest payable and other liabilities			139,485				161,095				138,479				102,410				117,332
Subordinated debentures			370,133				369,939				369,748				369,557				369,363
Total 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 other comprehensive (loss) income			38,345				39,007				20,971				16,221				19,882
Total stockholders' equity			2,540,799				2,492,146				2,430,271				2,511,531				2,469,389
Total liabilities and stockholders' equity		$	16,549,758			$	16,895,406			$	15,531,732			$	15,032,047			$	14,901,935

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)		2020				2020			2020				2019				2019			2020			2019
Interest income
Loans		$	154,787			$	158,996		$	158,148			$	161,211			$	167,470		$	471,931		$	497,134
Investment securities
Taxable			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 - other banks			252				211			1,116				949				1,068			1,579			4,239
Federal funds sold			-				-			21				5				8			21			29
Total interest income			166,633				171,598			172,175				175,132				182,082			510,406			542,856
Interest expense
Interest on deposits			13,200				15,116			24,198				26,823				29,566			52,514			87,281
Federal funds purchased			-				-			13				33				21			13			21
FHLB borrowed funds			2,235				2,656			2,698				2,686				3,683			7,589			14,523
Securities sold under agreements to repurchase			237				260			462				652				628			959			1,892
Subordinated debentures			4,823				4,899			5,079				5,155				5,207			14,801			15,705
Total interest expense			20,495				22,931			32,450				35,349				39,105			75,876			119,422
Net interest income			146,138				148,667			139,725				139,783				142,977			434,530			423,434
Provision for credit loss - loans			14,000				11,441			76,672				-				-			102,113			1,325
Provision for credit loss - acquired loans			-				-			9,309				-				-			9,309			-
Provision for credit loss - investment securities			-				-			842				-				-			842			-
Total credit loss expense			14,000				11,441			86,823				-				-			112,264			1,325
Net interest income after
provision for credit losses			132,138				137,226			52,902				139,783				142,977			322,266			422,109
Non-interest income
Service charges on deposit accounts			4,910				4,296			6,631				6,778				6,492			15,837			19,152
Other service charges and fees			8,539				7,666			6,056				10,636				8,710			22,261			23,450
Trust fees			378				397			438				390				382			1,213			1,176
Mortgage lending income			10,177				6,196			2,621				3,801				4,610			18,994			10,502
Insurance commissions			271				533			678				551				603			1,482			1,727
Increase in cash value of life insurance			548				558			560				562				714			1,666			2,190
Dividends from FHLB, FRB, FNBB & other			3,433				230			7,842				1,952				1,101			11,505			5,755
Gain on SBA loans			-				-			341				686				291			341			887
(Loss) gain on branches, equipment and other assets, net			(27	)			54			82				35				12			109			(38	)
Gain on OREO, net			470				235			277				159				334			982			598
Gain (loss) on securities, net			-				-			-				(2	)			-			-			-
Fair value adjustment for marketable securities			(1,350	)			919			(5,818	)			-				-			(6,249	)		-
Other income			2,602				3,939			3,219				2,481				1,500			9,760			6,088
Total non-interest income			29,951				25,023			22,927				28,029				24,749			77,901			71,487
Non-interest expense
Salaries and employee benefits			41,511				40,088			39,329				38,446				39,919			120,928			115,731
Occupancy and equipment			9,566				10,172			8,873				8,729				9,047			28,611			26,723
Data processing expense			4,921				4,614			4,326				4,294				4,059			13,861			11,867
Other operating expenses			15,714				25,298			25,721				19,873				14,739			66,733			50,124
Total non-interest expense			71,712				80,172			78,249				71,342				67,764			230,133			204,445
Income (loss) before income taxes			90,377				82,077			(2,420	)			96,470				99,962			170,034			289,151
Income tax expense (benefit)			21,057				19,250			(2,927	)			23,208				27,199			37,380			72,874
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 and shares in thousands, except per share data)		2020					2020			2020				2019				2019				2020				2019
PER SHARE DATA
Diluted earnings per common share		$	0.42			$	0.38			$	-			$	0.44			$	0.44			$	0.80			$	1.29
Diluted earnings per common share, as adjusted, excluding special
dividend from equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax (non-GAAP)(1)			0.47				0.47				0.43				0.44				0.44				1.37				1.30
Basic earnings per common share			0.42				0.38				-				0.44				0.44				0.80				1.29
Dividends per share - common			0.1300				0.1300				0.1300				0.1300				0.1300				0.3900				0.3800
Book value per common share			15.38				15.09				14.72				15.10				14.80				15.38				14.80
Tangible book value per common share (non-GAAP)(1)			9.30				8.99				8.61				9.12				8.83				9.30				8.83
STOCK INFORMATION
Average common shares outstanding			165,200				165,163				166,014				166,696				167,178				165,458				168,178
Average diluted shares outstanding			165,200				165,163				166,014				166,696				167,178				165,458				168,178
End of period common shares outstanding			165,163				165,206				165,148				166,373				166,860				165,163				166,860
ANNUALIZED PERFORMANCE METRICS
Return on average assets			1.66	%			1.55	%			0.01	%			1.94	%			1.93	%			1.11	%			1.92	%
Return on average assets excluding special dividend from equity
investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROA, as adjusted) (non-GAAP)(1)			1.88	%			1.93	%			1.88	%			1.94	%			1.96	%			1.90	%			1.94	%
Return on average assets excluding intangible amortization (non-GAAP)(1)			1.80	%			1.68	%			0.05	%			2.12	%			2.10	%			1.21	%			2.09	%
Return on average common equity			10.97	%			10.27	%			0.08	%			11.71	%			11.84	%			7.13	%			12.12	%
Return on average common equity excluding special dividend from
equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROE, as adjusted) (non-GAAP)(1)			12.39	%			12.77	%			11.48	%			11.68	%			12.08	%			12.22	%			12.27	%
Return on average tangible common equity (non-GAAP)(1)			18.29	%			17.40	%			0.14	%			19.55	%			20.04	%			11.96	%			20.84	%
Return on average tangible common equity excluding intangible amortization (non-GAAP)(1)			18.56	%			17.70	%			0.44	%			19.86	%			20.36	%			12.26	%			21.18	%
Return on average tangible common equity excluding special
dividend from equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROTCE, as adjusted) (non-GAAP)(1)			20.66	%			21.63	%			19.22	%			19.51	%			20.45	%			20.50	%			21.10	%
(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 and shares in thousands, except per share data)		2020				2020				2020				2019				2019						2020				2019
Efficiency ratio			39.56	%			44.93	%			46.82	%			41.26	%			39.16	%				43.69	%			40.03	%
Efficiency ratio, as adjusted (non-GAAP)(1)			40.08	%			39.38	%			41.37	%			41.14	%			40.60	%				40.25	%			40.35	%
Net interest margin - FTE			3.92	%			4.11	%			4.22	%			4.24	%			4.32	%				4.08	%			4.30	%
Net interest margin - FTE, excluding PPP loans (non-GAAP)(1)			3.98	%			4.16	%			4.22	%			4.24	%			4.32	%				4.12	%			4.30	%
Fully taxable equivalent adjustment		$	1,576			$	1,434			$	1,227			$	1,322			$	1,247				$	4,237			$	3,933
Total revenue (net)			176,089				173,690				162,652				167,812				167,726					512,431				494,921
Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (PPNR) (non-GAAP)(1)			104,377				102,732				92,178				96,470				99,962					299,287				290,476
Pre-tax net income to total revenue (net)			51.32	%			47.25	%			-1.49	%			57.49	%			59.60	%				33.18	%			58.42	%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)			59.28	%			59.15	%			56.67	%			57.49	%			59.60	%				58.41	%			58.69	%
Net income, excluding provision for credit losses and unfunded commitment expense			79,661				78,084				70,382				73,262				72,763					228,127				217,260
Return on average assets (pre-tax net income, excluding provision for credit losses and unfunded commitment expense) (non-GAAP)(1)			2.50	%			2.53	%			2.45	%			2.56	%			2.65	%				2.50	%			2.58	%
Return on average assets, excluding provision for credit losses and unfunded commitment expense (non-GAAP)(1)			1.91	%			1.92	%			1.87	%			1.94	%			1.93	%				1.90	%			1.93	%
Total purchase accounting accretion			6,957				7,036				7,647				9,133				8,462					21,640				26,757
Average purchase accounting loan discounts			55,835				62,822				69,365				91,869				112,623					62,662				122,121
OTHER OPERATING EXPENSES
Advertising		$	902			$	795			$	1,226			$	1,340			$	1,201				$	2,923			$	3,347
Merger and acquisition expenses			-				-				711				-				-					711				-
Amortization of intangibles			1,420				1,486				1,517				1,565				1,587					4,423				4,760
Electronic banking expense			2,426				2,054				1,715				1,870				1,901					6,195				5,655
Directors' fees			429				412				424				396				380					1,265				1,206
Due from bank service charges			259				239				223				289				272					721				792
FDIC and state assessment			1,607				1,846				1,548				1,635				(532	)				5,001				2,833
Hurricane expense			-				-				-				-				-					-				897
Insurance			766				711				746				790				698					2,223				2,056
Legal and accounting			1,235				1,278				919				1,633				1,414					3,432				3,384
Other professional fees			1,661				1,735				3,226				3,189				1,906					6,622				7,024
Operating supplies			460				553				535				469				511					1,548				1,552
Postage			328				313				327				327				320					968				939
Telephone			321				310				324				312				289					955				898
Unfunded commitments			-				9,214				7,775				-				-					16,989				-
Other expense			3,900				4,352				4,505				6,058				4,792					12,757				14,781
Total other operating expenses		$	15,714			$	25,298			$	25,721			$	19,873			$	14,739				$	66,733			$	50,124
(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)		2020			2020			2020			2019			2019
BALANCE SHEET RATIOS
Total loans to total deposits		90.37	%		90.73	%		98.87	%		96.38	%		97.51	%
Common equity to assets		15.35	%		14.75	%		15.65	%		16.71	%		16.57	%
Tangible common equity to tangible assets (non-GAAP)(1)		9.88	%		9.35	%		9.79	%		10.80	%		10.59	%
LOANS RECEIVABLE
Real estate
Commercial real estate loans
Non-farm/non-residential	$	4,342,212		$	4,325,795		$	4,357,007		$	4,412,769		$	4,375,970
Construction/land development		1,748,857			1,818,151			1,892,394			1,776,689			1,827,454
Agricultural		89,476			105,554			89,630			88,400			87,087
Residential real estate loans
Residential 1-4 family		1,665,628			1,730,716			1,775,610			1,819,221			1,808,099
Multifamily residential		491,380			482,635			411,960			488,278			498,079
Total real estate		8,337,553			8,462,851			8,526,601			8,585,357			8,596,689
Consumer		883,568			851,344			852,174			511,909			469,741
Commercial and industrial		2,161,818			2,228,816			1,759,752			1,528,003			1,479,724
Agricultural		85,365			80,023			64,582			63,644			90,343
Other		223,166			332,709			181,873			180,797			135,449
Loans receivable	$	11,691,470		$	11,955,743		$	11,384,982		$	10,869,710		$	10,771,946
Paycheck Protection Program (PPP) loans (included in total loans receivable)		848,745			848,628			-			-			-
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period	$	238,340		$	228,923		$	102,122		$	104,304		$	106,066
Impact of adopting ASC 326		-			-			43,988			-			-
Allowance for credit losses on acquired loans		-			-			357			-			-
Loans charged off		4,599			2,582			4,265			2,631			2,302
Recoveries of loans previously charged off		483			558			740			449			540
Net loans (recovered)/charged off		4,116			2,024			3,525			2,182			1,762
Provision for credit loss - loans		14,000			11,441			76,672			-			-
Provision for credit loss - acquired loans		-			-			9,309			-			-
Total credit loss expense excluding provision for credit loss - investment securities		14,000			11,441			85,981			-			-
Balance, end of period	$	248,224		$	238,340		$	228,923		$	102,122		$	104,304
Net (recoveries) charge-offs to average total loans		0.14	%		0.07	%		0.13	%		0.08	%		0.06	%
Allowance for credit losses to total loans		2.12	%		1.99	%		2.01	%		0.94	%		0.97	%
Allowance for credit losses to total loans, excluding PPP loans		2.29	%		2.15	%		2.01	%		0.94	%		0.97	%
NON-PERFORMING ASSETS
Non-performing loans
Non-accrual loans	$	65,148		$	52,074		$	52,131		$	47,607		$	48,640
Loans past due 90 days or more		8,635			7,824			7,760			7,238			9,964
Total non-performing loans		73,783			59,898			59,891			54,845			58,604
Other non-performing assets
Foreclosed assets held for sale, net		4,322			6,292			8,204			9,143			8,639
Other non-performing assets		247			247			447			447			447
Total other non-performing assets		4,569			6,539			8,651			9,590			9,086
Total non-performing assets	$	78,352		$	66,437		$	68,542		$	64,435		$	67,690
Allowance for credit losses for loans to non-performing loans		336.42	%		397.91	%		382.23	%		186.20	%		177.98	%
Non-performing loans to total loans		0.63	%		0.50	%		0.53	%		0.50	%		0.54	%
Non-performing assets to total assets		0.47	%		0.39	%		0.44	%		0.43	%		0.45	%
(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 thousands)		Balance			Expense			Rate			Balance			Expense			Rate
ASSETS
Earning assets
Interest-bearing balances due from banks		$	926,754		$	252		0.11	%		$	753,093		$	211		0.11	%
Federal funds sold			124			-		0.00	%			-			-		0.00	%
Investment securities - taxable			1,618,058			7,227		1.78	%			1,673,334			8,693		2.09	%
Investment securities - non-taxable - FTE			672,067			5,731		3.39	%			461,640			4,890		4.26	%
Loans receivable - FTE			11,758,143			154,999		5.24	%			11,790,398			159,238		5.43	%
Total interest-earning assets			14,975,146			168,209		4.47	%			14,678,465			173,032		4.74	%
Non-earning assets			1,619,349									1,640,741
Total assets		$	16,594,495								$	16,319,206
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts		$	7,937,412		$	6,651		0.33	%		$	7,651,259		$	7,818		0.41	%
Time deposits			1,745,279			6,549		1.49	%			1,855,626			7,298		1.58	%
Total interest-bearing deposits			9,682,691			13,200		0.54	%			9,506,885			15,116		0.64	%
Securities sold under agreement to repurchase			157,172			237		0.60	%			154,628			260		0.68	%
FHLB borrowed funds			464,799			2,235		1.91	%			652,354			2,656		1.64	%
Subordinated debentures			370,038			4,823		5.19	%			369,846			4,899		5.33	%
Total interest-bearing liabilities			10,674,700			20,495		0.76	%			10,683,713			22,931		0.86	%
Non-interest bearing liabilities
Non-interest bearing deposits			3,259,501									3,038,490
Other liabilities			146,502									137,062
Total liabilities			14,080,703									13,859,265
Shareholders' equity			2,513,792									2,459,941
Total liabilities and shareholders' equity		$	16,594,495								$	16,319,206
Net interest spread								3.71	%								3.88	%
Net interest income and margin - FTE					$	147,714		3.92	%					$	150,101		4.11	%

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 thousands)		Balance			Expense			Rate			Balance			Expense			Rate
ASSETS
Earning assets
Interest-bearing balances due from banks		$	671,231		$	1,579		0.31	%		$	261,419		$	4,239		2.17	%
Federal funds sold			1,775			21		1.58	%			1,510			29		2.57	%
Investment securities - taxable			1,665,900			25,696		2.06	%			1,647,781			31,699		2.57	%
Investment securities - non-taxable - FTE			503,253			14,712		3.90	%			380,115			12,741		4.48	%
Loans receivable - FTE			11,519,706			472,635		5.48	%			10,993,686			498,081		6.06	%
Total interest-earning assets			14,361,865			514,643		4.79	%			13,284,511			546,789		5.50	%
Non-earning assets			1,655,973									1,772,341
Total assets		$	16,017,838								$	15,056,852
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts		$	7,544,763		$	30,272		0.54	%		$	6,634,809		$	59,788		1.20	%
Time deposits			1,847,833			22,242		1.61	%			1,954,182			27,493		1.88	%
Total interest-bearing deposits			9,392,596			52,514		0.75	%			8,588,991			87,281		1.36	%
Federal funds purchased			2,080			13		0.83	%			1,618			21		1.74	%
Securities sold under agreement to repurchase			150,020			959		0.85	%			146,277			1,892		1.73	%
FHLB borrowed funds			579,805			7,589		1.75	%			945,351			14,523		2.05	%
Subordinated debentures			369,846			14,801		5.35	%			369,078			15,705		5.69	%
Total interest-bearing liabilities			10,494,347			75,876		0.97	%			10,051,315			119,422		1.59	%
Non-interest bearing liabilities
Non-interest bearing deposits			2,904,159									2,508,082
Other liabilities			134,281									110,715
Total liabilities			13,532,787									12,670,112
Shareholders' equity			2,485,051									2,386,740
Total liabilities and shareholders' equity		$	16,017,838								$	15,056,852
Net interest spread								3.82	%								3.91	%
Net interest income and margin - FTE					$	438,767		4.08	%					$	427,367		4.30	%

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)		2020			2020			2020			2019			2019					2020			2019
EARNINGS, AS ADJUSTED
GAAP net income available to common shareholders (A)		$	69,320		$	62,827		$	507		$	73,262		$	72,763				$	132,654		$	216,277
Pre-tax adjustments
Special dividend from equity investment			(3,181	)		-			(7,004	)		(861	)		-					(10,185	)		(2,134	)
Provision for credit losses			14,000			11,441			86,823			-			-					112,264			1,325
Fair value adjustment for marketable securities			1,350			(919	)		5,818			-			-					6,249			-
Branch write-off expense			-			981			-			-			-					981			-
Unfunded commitment expense			-			9,214			7,775			-			-					16,989			-
Outsourced special project expense			-			-			1,092			631			-					1,092			900
Merger and acquisition expenses			-			-			711			-			-					711			-
FDIC Small Bank Assessment Credit			-			-			-			-			(2,291	)				-			(2,291	)
Hurricane expenses			-			-			-			-			-					-			897
Total pre-tax adjustments			12,169			20,717			95,215			(230	)		(2,291	)				128,101			(1,303	)
Tax-effect of adjustments			3,181			5,414			24,884			(59	)		(592	)				33,479			(336	)
Adjustments after-tax			8,988			15,303			70,331			(171	)		(1,699	)				94,622			(967	)
Florida tax savings			-			-			-			-			(497	)				-			-
BOLI redemption tax			-			-			-			-			3,667					-			3,667
Total adjustments after-tax (B)			8,988			15,303			70,331			(171	)		1,471					94,622			2,700
Earnings, as adjusted (C)		$	78,308		$	78,130		$	70,838		$	73,091		$	74,234				$	227,276		$	218,977
Average diluted shares outstanding (D)			165,200			165,163			166,014			166,696			167,178					165,458			168,178
GAAP diluted earnings per share: (A/D)		$	0.42		$	0.38		$	-		$	0.44		$	0.44				$	0.80		$	1.29
Adjustments after-tax: (B/D)			0.05			0.09			0.43			-			-					0.57			0.01
Diluted earnings per common share, as adjusted, excluding special dividend from equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (C/D)		$	0.47		$	0.47		$	0.43		$	0.44		$	0.44				$	1.37		$	1.30
ANNUALIZED RETURN ON AVERAGE ASSETS
Return on average assets: (A/G)			1.66%			1.55%			0.01%			1.94%			1.93%					1.11%			1.92%
Return on average assets excluding special dividend from equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROA, as adjusted) ((A+F)/G)			1.88%			1.93%			1.88%			1.94%			1.96%					1.90%			1.94%
Return on average assets (pre-tax net income, excluding provision for credit losses and unfunded commitment expense): (B/G)			2.50%			2.53%			2.45%			2.56%			2.65%					2.50%			2.58%
Return on average assets, excluding provision for credit losses and unfunded commitment expense: (C/G)			1.91%			1.92%			1.87%			1.94%			1.93%					1.90%			1.93%
Return on average assets excluding intangible amortization: ((A+E)/(G-H))			1.80%			1.68%			0.05%			2.12%			2.10%					1.21%			2.09%
GAAP net income available to common shareholders (A)		$	69,320		$	62,827		$	507		$	73,262		$	72,763				$	132,654		$	216,277
Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (B)		$	104,377		$	102,732		$	92,178		$	96,470		$	99,962				$	299,287		$	290,476
Net income, excluding provision for credit losses and unfunded commitment expense (C)		$	79,661		$	78,084		$	70,382		$	73,262		$	72,763				$	228,127		$	217,260
Amortization of intangibles (D)			1,420			1,486			1,517			1,565			1,587					4,423			4,760
Amortization of intangibles after-tax (E)			1,049			1,098			1,121			1,161			1,177					3,268			3,531
Adjustments after-tax (F)			8,988			15,303			70,331			(171	)		1,471					94,622			2,700
Average assets (G)			16,594,495			16,319,206			15,133,475			14,944,368			14,993,232					16,017,838			15,056,852
Average goodwill, core deposits & other intangible assets (H)			1,005,864			1,007,307			999,004			995,721			997,309					1,004,065			998,889

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)		2020			2020			2020			2019			2019					2020			2019
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY
Return on average common equity: (A/D)			10.97%			10.27%			0.08%			11.71%			11.84%					7.13%			12.12%
Return on average common equity excluding special dividend from equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROE, as adjusted) ((A+C)/D)			12.39%			12.77%			11.48%			11.68%			12.08%					12.22%			12.27%
Return on average tangible common equity: (A/(D-E))			18.29%			17.40%			0.14%			19.55%			20.04%					11.96%			20.84%
Return on average tangible common equity excluding intangible amortization: (B/(D-E))			18.56%			17.70%			0.44%			19.86%			20.36%					12.26%			21.18%
Return on average tangible common equity excluding special dividend from equity investment, provision for credit losses, fair value adjustment for marketable securities, branch write-off expense, unfunded commitment expense, outsourced special project expense, merger and acquisition expenses, FDIC Small Bank Assessment Credit, hurricane expense, Florida tax savings and BOLI redemption tax: (ROTCE, as adjusted) ((A+C)/(D-E))			20.66%			21.63%			19.22%			19.51%			20.45%					20.50%			21.10%
GAAP net income available to common shareholders (A)		$	69,320		$	62,827		$	507		$	73,262		$	72,763				$	132,654		$	216,277
Earnings excluding intangible amortization (B)			70,369			63,925			1,628			74,423			73,940					135,922			219,808
Adjustments after-tax (C)			8,988			15,303			70,331			(171	)		1,471					94,622			2,700
Average common equity (D)			2,513,792			2,459,941			2,481,104			2,482,406			2,437,820					2,485,051			2,386,740
Average goodwill, core deposits & other intangible assets (E)			1,005,864			1,007,307			999,004			995,721			997,309					1,004,065			998,889
EFFICIENCY RATIO
Efficiency ratio: ((C-E)/(A+B+D))			39.56	%		44.93	%		46.82	%		41.26	%		39.16	%				43.69	%		40.03	%
Efficiency ratio, as adjusted: ((C-E-G)/(A+B+D-F))			40.08	%		39.38	%		41.37	%		41.14	%		40.60	%				40.25	%		40.35	%
																				-			-
Net interest income (A)		$	146,138		$	148,667		$	139,725		$	139,783		$	142,977				$	434,530		$	423,434
Non-interest income (B)			29,951			25,023			22,927			28,029			24,749					77,901			71,487
Non-interest expense (C)			71,712			80,172			78,249			71,342			67,764					230,133			204,445
Fully taxable equivalent adjustment (D)			1,576			1,434			1,227			1,322			1,247					4,237			3,933
Amortization of intangibles (E)			1,420			1,486			1,517			1,565			1,587					4,423			4,760
Adjustments:
Non-interest income:
Special dividend from equity investment		$	3,181		$	-		$	7,004		$	861		$	-				$	10,185		$	2,134
Fair value adjustment for marketable securities			(1,350	)		919			(5,818	)		-			-					(6,249	)		-
Gain (loss) on OREO			470			235			277			159			334					982			598
Gain (loss) on branches, equipment and other assets, net			(27	)		54			82			35			12					109			(38	)
Gain (loss) on securities			-			-			-			(2	)		-					-			-
Total non-interest income adjustments (F)		$	2,274		$	1,208		$	1,545		$	1,053		$	346				$	5,027		$	2,694
Non-interest expense:
Branch write-off expense		$	-		$	981		$	-		$	-		$	-				$	981		$	-
Unfunded commitment expense			-			9,214			7,775			-			-					16,989			-
FDIC Small Bank Assessment Credit			-			-			-			-			(2,291	)				-			(2,291	)
Merger Expenses			-			-			711			-			-					711			-
Hurricane damage expense			-			-			-			-			-					-			897
Outsourced special project expense			-			-			1,092			631			-					1,092			900
Total non-interest expense adjustments (G)		$	-		$	10,195		$	9,578		$	631		$	(2,291	)			$	19,773		$	(494	)
ANNUALIZED NET INTEREST MARGIN
Net interest margin: A/C			3.92%			4.11%			4.22%			4.24%			4.32%					4.08%			4.30%
Net interest margin, excluding PPP loans (non-GAAP): B/D			3.98%			4.16%			4.22%			4.24%			4.32%					4.12%			4.30%
Net interest income - FTE (A)		$	147,714		$	150,101		$	140,952		$	141,105		$	144,224				$	438,767		$	427,367
PPP loan interest & discount accretion income			5,943			4,450			-			-			-					10,393			-
Net interest income - FTE, excluding PPP loans (non-GAAP) (B)		$	141,771		$	145,651		$	140,952		$	141,105		$	144,224				$	428,374		$	427,367
Average interest-earning assets (C)		$	14,975,146		$	14,678,465		$	13,428,700		$	13,188,508		$	13,235,774				$	14,361,865		$	13,284,511
Average PPP loans			821,977			585,946			-			-			-					470,595			-
Average interest-earning assets, excluding PPP loans (non-GAAP) (D)		$	14,153,169		$	14,092,519		$	13,428,700		$	13,188,508		$	13,235,774				$	13,891,270		$	13,284,511

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)		2020			2020			2020			2019			2019					2020			2019
Pre-tax net income		$	90,377		$	82,077		$	(2,420	)	$	96,470		$	99,962				$	170,034		$	289,151
Provision for credit losses			14,000			11,441			86,823			-			-					112,264			1,325
Unfunded commitment expense			-			9,214			7,775			-			-					16,989			-
Pre-tax net income, excluding provision for credit losses and unfunded commitment expense (PPNR) (A)		$	104,377		$	102,732		$	92,178		$	96,470		$	99,962				$	299,287		$	290,476
Total revenue (net) (B)			176,089			173,690			162,652			167,812			167,726					512,431			494,921
Pre-tax net income to total revenue (net)			51.32%			47.25%			-1.49	%		57.49%			59.60%					33.18%			58.42%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net))			59.28%			59.15%			56.67%			57.49%			59.60%					58.41%			58.69%
		Quarter Ended
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(Dollars in thousands)			2020			2020			2020			2019			2019
TANGIBLE BOOK VALUE PER COMMON SHARE
Book value per common share: (A/B)		$	15.38		$	15.09		$	14.72		$	15.10		$	14.80
Tangible book value per common share: ((A-C-D)/B)			9.30			8.99			8.61			9.12			8.83
Total stockholders' equity (A)		$	2,540,799		$	2,492,146		$	2,430,271		$	2,511,531		$	2,469,389
End of period common shares outstanding (B)			165,163			165,206			165,148			166,373			166,860
Goodwill (C)			973,025			973,025			973,025			958,408			958,408
Core deposit and other intangibles (D)			32,149			33,569			35,055			36,572			38,136
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
Equity to assets: (B/A)			15.35%			14.75%			15.65%			16.71%			16.57%
Tangible common equity to tangible assets: ((B-C-D)/(A-C-D))			9.88%			9.35%			9.79%			10.80%			10.59%
Total assets (A)		$	16,549,758		$	16,895,406		$	15,531,732		$	15,032,047		$	14,901,935
Total stockholders' equity (B)			2,540,799			2,492,146			2,430,271			2,511,531			2,469,389
Goodwill (C)			973,025			973,025			973,025			958,408			958,408
Core deposit and other intangibles (D)			32,149			33,569			35,055			36,572			38,136