Summary of Home BancShares FY Conference Call (November 18, 2025) Company Overview - **Company**: Home BancShares - **Location**: Conway, Arkansas - **Assets**: $23 billion - **Industry**: Banking - **Key Performance Indicator**: ROA above 2% in 2025, significantly higher than peers at approximately 1.20% [1][17] Core Points and Arguments Loan Demand and Borrower Sentiment - Overall borrower sentiment is described as good, with a loan growth of $300 million for the quarter, indicating strong demand [3] - Notable projects from large customers, particularly in Florida, are contributing positively to loan growth [4] M&A Activity - M&A is a primary focus, with the company being one of the most prolific acquirers in the banking industry since its IPO [1][2] - The company is currently involved in due diligence for a potential acquisition, with expectations of it being a "triple accretive" deal [28][37] - The regulatory environment is perceived as favorable for M&A, with quicker processing times for applications compared to previous years [42] Financial Performance and Margins - Home BancShares maintains a margin over 4.5%, significantly higher than peers at 3-3.5% [17] - The company avoided long-term securities investments, which helped maintain high margins during fluctuating interest rates [18] - The efficiency ratio has improved from 62% to below 40%, showcasing strong operational efficiency [25] Challenges and Risks - The company faces challenges with past due loans in the marine lending segment, particularly related to a single yacht loan that constitutes a significant portion of past dues [10][11] - Concerns about potential dilution from M&A activities and the impact on shareholder value were expressed, emphasizing the need for non-dilutive deals [30][56] Market Presence and Expansion - Florida is highlighted as a strong market for growth, with limited acquisition opportunities due to scarcity [55] - The company is open to expanding in Texas and Florida but remains cautious about potential dilution from acquisitions [40] Shareholder Focus - There is a strong emphasis on the importance of shareholder value, with frustrations expressed over the dilution of tangible book value through poorly structured M&A deals [30][56] - The CEO is committed to ensuring that any future acquisitions are accretive to EPS from day one [37] Other Important Insights - The company has a robust capital position, operating with a tangible common equity ratio of 14% and generating significant capital annually [43][46] - The management team is proactive in maintaining operational efficiency and profitability, with a focus on improving ROA and managing costs effectively [25][44] - The CEO's candid remarks reflect a commitment to transparency and accountability in the banking sector, particularly regarding shareholder interests [33][57] This summary encapsulates the key points discussed during the Home BancShares FY Conference Call, highlighting the company's strong performance, strategic focus on M&A, and commitment to shareholder value.

Financial Performance - The company reported a net income of $XX million for the three months ended September 30, 2025, compared to $XX million for the same period in 2024, reflecting a year-over-year change of XX%[18] - Net income for the three months ended September 30, 2025, was $123,604,000, compared to $100,038,000 for the same period in 2024, representing a 23.5% increase[19] - Net income for the nine months ended September 30, 2025, was $357,216,000, compared to $301,677,000 for the same period in 2024, representing an increase of 18.5%[29] - Total consolidated revenues for the three months ended September 30, 2025, were $375,037 thousand, slightly down from $375,624 thousand in the same period of 2024[187] - Segment net income for the three months ended September 30, 2025, increased to $123,604 thousand, up from $100,038 thousand in the same period of 2024, representing a growth of approximately 23.5%[187] Asset and Liability Management - Total assets increased to $22,707,802, up from $22,490,748 as of December 31, 2024, representing a growth of 0.97%[17] - Total liabilities decreased slightly to $18,492,838 from $18,529,723, a reduction of 0.20%[17] - Total deposits grew to $17,327,696, reflecting an increase of 1.06% from $17,146,297[17] - The company reported a net increase in deposits of $181,399,000 for the nine months ended September 30, 2025, compared to a net decrease of $82,001,000 in 2024[29] - The total cash and cash equivalents at the end of the period were $800,920,000, down from $1,017,677,000 at the end of the same period in 2024, a decrease of 21.4%[29] Loan Portfolio and Credit Quality - Loans receivable rose to $15,285,972, an increase of 3.53% compared to $14,764,500 at the end of 2024[17] - The company experienced a net increase in loans of $460,582,000 during the nine months ended September 30, 2025, compared to an increase of $428,985,000 in 2024[29] - The provision for credit losses on loans for the three months ended September 30, 2025, was $6,700,000, compared to $18,200,000 in 2024, indicating a significant decrease of 63.2%[19] - The provision for credit losses on loans decreased to $6,700 for the three months ended September 30, 2025, compared to $18,200 for the same period in 2024[19] - The allowance for credit losses was $285,649, compared to $275,880 at the end of 2024, indicating a slight increase in provisions[17] Income and Expense Analysis - Total interest income for the nine months ended September 30, 2025, was $977,063,000, up from $955,189,000 in 2024, reflecting a growth of 2.3%[19] - Net interest income after credit loss expense for the nine months ended September 30, 2025, was $600,262,000, compared to $654,268,000 in 2024, indicating a decrease of 8.2%[19] - Total non-interest income for the three months ended September 30, 2025, was $51,505,000, an increase from $42,779,000 in 2024, marking a growth of 20.2%[19] - Total non-interest expense for the nine months ended September 30, 2025, was $334,726,000, slightly down from $343,806,000 in 2024, showing a decrease of 2.1%[19] - Interest expense applicable to certificates in excess of $100,000 totaled $12.9 million for the three months ended September 30, 2025, compared to $12.7 million for the same period in 2024[119] Shareholder Returns and Stock Activity - Cash dividends for common stock were $0.20 per share for the three months ended September 30, 2025, consistent with the previous quarter[24] - The company repurchased 1,000,000 shares of common stock during the period, costing $26,932,000[29] - The Company repurchased a total of 2,350,000 shares during the nine months ended September 30, 2025, at a weighted-average price of $28.33 per share[135] - The remaining balance available for stock repurchase as of September 30, 2025, is 17,650,000 shares[135] Regulatory and Compliance Matters - The independent auditor expressed an unqualified opinion on the consolidated financial statements for the year ended December 31, 2024[197] - The Company has reviewed its interim financial statements for the three-month and nine-month periods ended September 30, 2025, and found no material modifications needed for conformity with accounting principles[196] - The Company met all capital adequacy requirements as of September 30, 2025[158] - The Company’s CET1 risk-based capital ratio was 16.08% as of September 30, 2025, exceeding the 6.5% requirement for a well-capitalized institution[161] Market Expansion and Strategic Initiatives - The company plans to expand into new markets through potential acquisitions, enhancing its competitive position in the banking industry[13] - Management anticipates continued growth in loan demand and improvements in credit quality, contingent on economic conditions[13] - The company is focused on integrating new technologies to improve operational efficiency and customer service[13]

Core Insights - Home BancShares (HOMB) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates [1][3] - The Zacks rating system focuses on earnings estimate revisions, which are strongly correlated with stock price movements, making it a valuable tool for investors [2][4] Earnings Estimates - For the fiscal year ending December 2025, Home BancShares is expected to earn $2.35 per share, unchanged from the previous year [8] - Over the past three months, the Zacks Consensus Estimate for Home BancShares has increased by 0.4% [8] Investment Implications - The upgrade reflects an improvement in the company's underlying business, suggesting that investors may push the stock price higher [5][10] - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating potential for market-beating returns [9][10]

Financial Data and Key Metrics Changes - The company reported record net income of $123.6 million and record EPS of $0.63 for Q3 2025, with revenue of $277.7 million and pretax pre-provision net revenue of $162.8 million, resulting in a profit percentage of 58.64% [5][14] - The efficiency ratio improved to 40.21%, marking the best performance in the last twelve months, while the net interest margin increased by 12 basis points to 4.56% [5][24] - Return on tangible common equity (ROTCE) remained strong at 18.28%, with common equity assets at 18.56% and tangible equity at 13.08% [6][7] Business Line Data and Key Metrics Changes - Loan production was robust, reaching nearly $1.3 billion, with $800 million coming from the Community Bank footprint, particularly strong in Florida [25] - The lending portfolio showed improvements in asset quality, with reductions in non-performing loans (NPLs) and criticized loans, while organic loan growth was recorded at $105 million for the quarter [27][28] Market Data and Key Metrics Changes - Deposits decreased slightly by $161 million, primarily due to customer tax payments made in July, but the company continues to focus on growing core deposits [24][44] - The company opened a new branch in San Antonio, indicating expansion into new markets [15] Company Strategy and Development Direction - The management emphasized a conservative approach to growth, focusing on resolving existing issues before pursuing new opportunities, particularly in light of past challenges from the Hapi acquisition [9][12] - The company is preparing for potential acquisitions, with a focus on finding the right targets and maintaining a strong balance sheet [75][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining net interest margin despite potential rate cuts, highlighting their proactive approach to adjusting rates [39][40] - The company remains optimistic about future growth opportunities, particularly in a lower rate environment that may stimulate demand for loans [93] Other Important Information - The Texas lawsuit has been settled, with the company receiving a partial payment and expecting further payments in Q4 [7][105] - The company reported gains from various sources, including a $1.9 million gain from sub-debt paydown and a $1.75 million gain related to the lawsuit [81][105] Q&A Session Summary Question: How is the company thinking about NIM and NII trends given recent rate cuts? - Management acknowledged that while lower rates typically pressure net interest income, they have historically maintained margins through quick adjustments and proactive management [39][40] Question: What is the outlook for deposit growth in a lower rate environment? - The company does not engage in aggressive CD promotions and prefers to maintain a strong position with insured depositors, indicating confidence in deposit stability [44] Question: How is the company addressing concerns about the government shutdown? - Management has not seen any immediate impact from the government shutdown and is prepared to offer deferments if necessary [49][51] Question: What is the company's perspective on credit quality amid broader market concerns? - Management reported a positive outlook on credit quality, noting improvements in asset quality metrics and a low level of expected losses [56][60] Question: What is the company's strategy regarding M&A? - The company is actively seeking acquisition opportunities and has signed a letter of intent for a potential deal, indicating readiness to move forward [75][78] Question: How does the company view profitability and expense management going forward? - Management indicated that while expenses were slightly up, there is potential for further reductions, which could enhance profitability [80][90]

Financial Data and Key Metrics Changes - Home BancShares reported record net income of $123.6 million and record EPS of $0.63 for Q3 2025, with revenue of $277.7 million and pre-tax, pre-provision net revenue of $162.8 million, achieving a profit percentage of 58.64% [4][5] - The efficiency ratio improved to 40.21%, marking the best performance in 12 months, while the net interest margin increased by 12 basis points to 4.56% [5][21] - Return on tangible common equity (ROTCE) remained strong at 18.28% [5] Business Line Data and Key Metrics Changes - Loan production was robust, reaching nearly $1.3 billion, with $800 million coming from the community bank footprint, particularly strong in Florida [21][26] - The lending portfolio showed organic loan growth of $105 million for Q3, marking eight times in the last nine quarters of linked quarter loan growth [26] - Centennial Commercial Finance Group originated over $1 billion in new loans through Q3, although total assets decreased by about $60 million due to payoffs outpacing new funding [30] Market Data and Key Metrics Changes - Deposits decreased by $161 million in Q3, primarily due to customer tax payments made in July, but the company continues to focus on growing core deposits [21] - Wholesale deposits comprised only 2.3% of total liabilities, indicating a strong focus on core deposit relationships [21] Company Strategy and Development Direction - The company is preparing for potential acquisitions, with management indicating readiness to pursue large transactions or several smaller ones [11][64] - Home BancShares has been conservative in its growth strategy, focusing on resolving existing issues before pursuing new opportunities [6][10] - The company aims to maintain its strong performance metrics while exploring growth avenues, with a target of $500 million in income for 2026 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain net interest margin despite potential rate cuts, emphasizing a proactive approach to adjusting rates [36][38] - The company has not yet seen significant impacts from the government shutdown, with management indicating a willingness to offer deferments if necessary [42][44] - Overall asset quality remains stable, with management reporting low levels of potential losses in their asset quality meetings [53][54] Other Important Information - The Texas lawsuit has been settled, with the company receiving a partial payment and expecting the remainder in Q4 [5][91] - The company opened a new branch in San Antonio, indicating expansion into new markets [13] Q&A Session Summary Question: How is the company thinking about NIM and NII trends going forward? - Management indicated that they react quickly to rate changes and have historically maintained margins better than peers [36][38] Question: How does the company view deposit growth in a lower-rate environment? - The company does not run CD ads and focuses on maintaining strength in deposits, with a preference for core deposits over wholesale [39][40] Question: What is the company's perspective on credit quality amid broader market concerns? - Management reported a positive outlook on credit quality, with minimal concerns noted in their asset quality meetings [52][54] Question: Can the company provide insights on M&A activity and challenges? - Management confirmed they are actively looking for acquisition opportunities and have signed a letter of intent for a potential deal [64][68] Question: What are the expectations for profitability moving into 2026? - Management believes there is still room for improvement in expenses and profitability metrics, with a focus on maintaining efficiency [70][72]

Core Insights - Home BancShares reported revenue of $277.67 million for the quarter ended September 2025, reflecting a year-over-year increase of 7.6% and a surprise of +2.68% over the Zacks Consensus Estimate of $270.43 million [1] - The earnings per share (EPS) for the quarter was $0.61, compared to $0.50 in the same quarter last year, resulting in an EPS surprise of +1.67% against the consensus estimate of $0.60 [1] Financial Performance Metrics - Efficiency Ratio was reported at 40.2%, better than the estimated 41.2% by three analysts [4] - Net Interest Margin stood at 4.6%, slightly above the average estimate of 4.5% from three analysts [4] - Total non-performing assets amounted to $126.48 million, lower than the estimated $131.5 million by two analysts [4] - Total non-performing loans were reported at $85.21 million, compared to the estimated $85.58 million by two analysts [4] - Average balance of total interest-earning assets was $19.94 billion, below the estimated $20.14 billion by two analysts [4] - Net charge-offs to average total loans were at 0.1%, matching the estimate from two analysts [4] - Net Interest Income was $226.17 million, exceeding the average estimate of $224.38 million from three analysts [4] - Total Non-Interest Income reached $51.51 million, significantly higher than the average estimate of $43.47 million from three analysts [4] - Net Interest Income (FTE) was reported at $229.08 million, above the average estimate of $226.72 million from two analysts [4] Stock Performance - Home BancShares shares have returned -2.2% over the past month, while the Zacks S&P 500 composite has changed by +1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Home BancShares reported quarterly earnings of $0.61 per share, exceeding the Zacks Consensus Estimate of $0.60 per share, and showing an increase from $0.50 per share a year ago, indicating a positive earnings surprise of +1.67% [1] Financial Performance - The company achieved revenues of $277.67 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.68% and up from $258 million year-over-year [2] - Over the last four quarters, Home BancShares has exceeded consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - Home BancShares shares have increased by approximately 0.1% since the beginning of the year, in contrast to the S&P 500's gain of 13% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.60 on revenues of $271.73 million, while for the current fiscal year, the estimate is $2.34 on revenues of $1.07 billion [7] - The estimate revisions trend for Home BancShares was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Southeast industry, to which Home BancShares belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - HomeTrust Bancshares, another company in the same industry, is expected to report quarterly earnings of $0.88 per share, reflecting a year-over-year increase of +15.8% [9]

```markdown [Executive Summary & Quarterly Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Quarterly%20Highlights) This section provides an overview of the company's record-breaking quarterly performance, highlighting key financial metrics and strategic achievements [Company Overview](index=1&type=section&id=Company%20Overview) Home BancShares, Inc. (HOMB), parent company of Centennial Bank, reported a record-breaking third quarter in 2025, driven by strong margins, efficiencies, and revenues - Home BancShares, Inc. (HOMB) reported a **record-breaking third quarter for 2025**, with **strong performance attributed to powerful, peer-leading margins, efficiencies, and robust revenues**[1](index=1&type=chunk)[2](index=2&type=chunk) [Key Financial Metrics (Q3 2025 vs. Prior Quarters)](index=1&type=section&id=Key%20Financial%20Metrics%20(Q3%202025%20vs.%20Prior%20Quarters)) The company achieved record net income and diluted EPS in Q3 2025, alongside improvements in ROA, ROE, and NIM, while asset quality remained strong with robust capital ratios Quarterly Financial Highlights | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net income | $123.6 million | $118.4 million | $115.2 million | $100.6 million | $100.0 million | | Net income, as adjusted (non-GAAP) | $119.7 million | $114.6 million | $111.9 million | $99.8 million | $99.0 million | | Total revenue (net) | $277.7 million | $271.0 million | $260.1 million | $258.4 million | $258.0 million | | Income before income taxes | $159.3 million | $152.0 million | $147.2 million | $129.5 million | $129.1 million | | Pre-tax, pre-provision, net income (PPNR) (non-GAAP) | $162.8 million | $155.0 million | $147.2 million | $146.2 million | $148.0 million | | ROA | 2.17% | 2.08% | 2.07% | 1.77% | 1.74% | | NIM | 4.56% | 4.44% | 4.44% | 4.39% | 4.28% | | ROE | 11.91% | 11.77% | 11.75% | 10.13% | 10.23% | | Diluted earnings per share | $0.63 | $0.60 | $0.58 | $0.51 | $0.50 | | Non-performing assets to total assets | 0.56% | 0.60% | 0.56% | 0.63% | 0.63% | | Common equity tier 1 capital | 16.1% | 15.6% | 15.4% | 15.1% | 14.7% | | Book value per share | $21.41 | $20.71 | $20.40 | $19.92 | $19.91 | | Dividends per share | $0.20 | $0.20 | $0.195 | $0.195 | $0.195 | - Net income reached a **record $123.6 million** in Q3 2025, with **diluted earnings per share at $0.63**, also a record[2](index=2&type=chunk)[12](index=12&type=chunk) - **Return on average assets (ROA) showed a steady upward trend, reaching 2.17%** in Q3 2025, reflecting **disciplined asset management and operational efficiency**[2](index=2&type=chunk)[6](index=6&type=chunk) [Financial Performance Trends](index=2&type=section&id=Financial%20Performance%20Trends) This section analyzes the company's profitability, operational efficiency, and net interest metrics over recent quarters, demonstrating consistent financial improvement [Profitability Metrics (Net Income, PPNR, ROA)](index=2&type=section&id=Profitability%20Metrics%20(Net%20Income,%20PPNR,%20ROA)) Home BancShares demonstrated consistent improvement in profitability over the past five quarters, with record net income and adjusted net income in Q3 2025, robust PPNR, and a steady upward trend in ROA - Net income reached a **record $123.6 million** in Q3 2025, and **adjusted net income (non-GAAP) also set a new high at $119.7 million**, indicating **sustained upward profitability**[4](index=4&type=chunk) - **Pre-tax, pre-provision, net income (PPNR) (non-GAAP) demonstrated robust operational performance** over the past five quarters, reflecting **strong earnings power before credit loss provisions and taxes**[4](index=4&type=chunk) - **Return on average assets (ROA) showed a strong and consistent upward trend, reaching 2.17%** in Q3 2025, highlighting **efficient asset utilization**[6](index=6&type=chunk) [Operational Efficiency (Efficiency Ratio)](index=2&type=section&id=Operational%20Efficiency%20(Efficiency%20Ratio)) The company maintained strong and consistent performance in managing operating expenses, as evidenced by its efficiency ratio over the past five quarters, indicating effective conversion of revenue into net income - The efficiency ratio, a key metric for operational efficiency, reflects **strong and consistent performance** in managing operating expenses over the past five quarters[7](index=7&type=chunk) Efficiency Ratio Trend | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Efficiency ratio | 40.21% | 41.68% | 42.22% | 42.24% | 41.42% | | Efficiency ratio, as adjusted (non-GAAP) | 40.95% | 42.01% | 42.84% | 42.00% | 41.66% | [Net Interest Metrics (NIM, Yields, Spreads)](index=3&type=section&id=Net%20Interest%20Metrics%20(NIM,%20Yields,%20Spreads)) The company's net interest margin (NIM) improved in Q3 2025, driven by a higher yield on loans and a slight decrease in the rate on interest-bearing deposits, indicating enhanced profitability and operational efficiency - **Net interest margin (NIM) increased to 4.56%** in Q3 2025 **from 4.44%** in Q2 2025[2](index=2&type=chunk)[13](index=13&type=chunk) - The yield on loans **rose to 7.39%** in Q3 2025 **from 7.36%** in Q2 2025, while **average loans increased from $15.06 billion to $15.22 billion**[13](index=13&type=chunk) - The rate on interest-bearing deposits **slightly decreased to 2.62%** in Q3 2025 **from 2.64%** in Q2 2025, with **average interest-bearing deposits decreasing from $13.43 billion to $13.32 billion**[13](index=13&type=chunk) [Operating Highlights](index=3&type=section&id=Operating%20Highlights) This section details the company's net income, earnings per share, credit loss provisions, and the drivers of net interest and non-interest income and expenses for the quarter [Net Income and EPS Analysis](index=3&type=section&id=Net%20Income%20and%20EPS%20Analysis) Home BancShares achieved record net income of $123.6 million and diluted earnings per share of $0.63 for Q3 2025, with adjusted figures of $119.7 million and $0.61 per share respectively - **Net income for Q3 2025 was a record $123.6 million**, with **diluted earnings per share at $0.63**[12](index=12&type=chunk) - **Adjusted net income (non-GAAP) was $119.7 million**, and **adjusted diluted earnings per share (non-GAAP) was $0.61** for Q3 2025[12](index=12&type=chunk) [Credit Loss Provision and Recoveries](index=3&type=section&id=Credit%20Loss%20Provision%20and%20Recoveries) The company recorded a provision for credit losses on loans of $6.7 million in Q3 2025, partially offset by recoveries on unfunded commitments and investment securities, resulting in a total credit loss expense of $3.5 million - **Provision for credit losses on loans was $6.7 million** for Q3 2025[12](index=12&type=chunk) - The company recorded a **$1.0 million recovery of credit losses on unfunded commitments and a $2.2 million recovery on investment securities**[12](index=12&type=chunk) - **Total credit loss expense for Q3 2025 was $3.5 million**[12](index=12&type=chunk) [Net Interest Income Drivers](index=3&type=section&id=Net%20Interest%20Income%20Drivers) Net interest income on a fully taxable equivalent basis increased to $229.1 million in Q3 2025, primarily due to a $4.8 million increase in interest income (driven by higher loan income) and a $1.8 million decrease in interest expense (due to lower subordinated debt and deposit interest expense) - **Net interest income on a fully taxable equivalent basis increased to $229.1 million in Q3 2025 from $222.5 million in Q2 2025**[15](index=15&type=chunk) - The increase was driven by a **$4.8 million rise in interest income, primarily from a $7.5 million increase in loan income**, partially offset by a $2.7 million decrease in income from deposits with other banks[15](index=15&type=chunk) - **Interest expense decreased by $1.8 million**, mainly due to a **$1.1 million reduction in subordinated debt interest expense (following a $20.0 million repurchase)** and a $527,000 decrease in deposit interest expense[15](index=15&type=chunk) [Non-Interest Income Breakdown](index=4&type=section&id=Non-Interest%20Income%20Breakdown) Non-interest income for Q3 2025 totaled $51.5 million, with significant contributions from other income, service charges and fees, and mortgage lending income, including recoveries on historic losses and a gain on subordinated debt retirement - **Total non-interest income for Q3 2025 was $51.5 million**[16](index=16&type=chunk) - Key components of non-interest income: * **Other income: $14.0 million (including $2.0 million from recoveries on historic losses and $1.9 million gain on subordinated debt retirement)** * **Other service charges and fees: $12.1 million** * **Service charges on deposit accounts: $10.5 million** * **Mortgage lending income: $4.7 million** * **Trust fees: $4.6 million** [Non-Interest Expense Breakdown](index=4&type=section&id=Non-Interest%20Expense%20Breakdown) Non-interest expense for Q3 2025 was $114.8 million, primarily driven by salaries and employee benefits, other operating expenses, and occupancy and equipment costs, resulting in an efficiency ratio of 40.21% - **Total non-interest expense for Q3 2025 was $114.8 million**[17](index=17&type=chunk) - Major components of non-interest expense: * **Salaries and employee benefits: $63.8 million** * **Other operating expense: $27.3 million** * **Occupancy and equipment expenses: $14.8 million** * **Data processing expenses: $8.9 million** - **The efficiency ratio for Q3 2025 was 40.21%**, and the **adjusted efficiency ratio (non-GAAP) was 40.95%**[17](index=17&type=chunk) [Financial Condition](index=4&type=section&id=Financial%20Condition) This section reviews the company's balance sheet, loan portfolio growth, asset quality, capital management, and shareholders' equity, reflecting its financial strength [Balance Sheet Overview (Loans, Deposits, Assets)](index=4&type=section&id=Balance%20Sheet%20Overview%20(Loans,%20Deposits,%20Assets)) Total loans receivable reached a record $15.29 billion at September 30, 2025, showing growth from the prior quarter, while total deposits and total assets experienced slight decreases - **Total loans receivable reached a record $15.29 billion** at September 30, 2025, **up from $15.18 billion** at June 30, 2025[19](index=19&type=chunk) - **Total deposits were $17.33 billion** at September 30, 2025, a **decrease from $17.49 billion** at June 30, 2025[19](index=19&type=chunk) - **Total assets were $22.71 billion** at September 30, 2025, **down from $22.91 billion** at June 30, 2025[19](index=19&type=chunk) [Loan Portfolio Growth and Composition](index=4&type=section&id=Loan%20Portfolio%20Growth%20and%20Composition) The company experienced a $105.3 million increase in total loans during Q3 2025, driven by $164.8 million in organic loan growth from its community banking footprint, partially offset by a decline in Centennial CFG loans - The Company had a **$105.3 million increase in total loans** during Q3 2025[20](index=20&type=chunk) - Community banking footprint generated **$164.8 million in organic loan growth**[20](index=20&type=chunk) - **Centennial CFG experienced a $59.4 million organic loan decline**, with **total loans of $1.78 billion** at quarter-end[20](index=20&type=chunk) [Asset Quality and Non-Performing Assets](index=4&type=section&id=Asset%20Quality%20and%20Non-Performing%20Assets) Asset quality improved in Q3 2025, with non-performing loans and non-performing assets decreasing both in absolute terms and as a percentage of total loans/assets, while the allowance for credit losses remained strong relative to non-performing loans - **Non-performing loans to total loans decreased to 0.56%** at September 30, 2025, **from 0.63%** at June 30, 2025[21](index=21&type=chunk) - **Total non-performing assets decreased to $126.5 million** at September 30, 2025, **from $137.8 million** at June 30, 2025[23](index=23&type=chunk) - The allowance for credit losses on loans was **$285.6 million** (**1.87%** of total loans) at September 30, 2025, **covering 335.22%** of total non-performing loans[23](index=23&type=chunk) Net Charge-offs (Recoveries) by Region (in thousands) | Region | Q3 2025 Net Charge-offs (Recoveries) | Q2 2025 Net Charge-offs (Recoveries) | | :--- | :--- | :--- | | Texas | $1,045 | $416 | | Arkansas | $380 | $239 | | Centennial CFG | $0 | $181 | | Shore Premier Finance | $730 | $560 | | Florida | $760 | $(332) | | Alabama | $5 | $11 | | Total | $2,920 | $1,075 | [Capital Management and Subordinated Debt](index=5&type=section&id=Capital%20Management%20and%20Subordinated%20Debt) The company completed the payoff of $140.0 million in subordinated notes due 2030 and repurchased $20.0 million of notes due 2032, which negatively impacted the total risk-based capital ratio by 87 basis points - The company paid off **$140.0 million** of 5.50% Fixed-to-Floating Rate Subordinated Notes due 2030[24](index=24&type=chunk) - An additional **$20.0 million** of **$300.0 million** Fixed-to-Floating Rate Subordinated Notes due 2032 were repurchased[24](index=24&type=chunk) - These debt management activities **negatively impacted the total risk-based capital ratio by 87 basis points**[24](index=24&type=chunk) [Shareholders' Equity and Book Value](index=5&type=section&id=Shareholders'%20Equity%20and%20Book%20Value) Shareholders' equity increased by approximately $129.6 million in Q3 2025, primarily due to an increase in retained earnings and a decrease in accumulated other comprehensive loss, partially offset by stock repurchases, leading to a record high book value per common share - **Shareholders' equity increased by approximately $129.6 million to $4.21 billion** at September 30, 2025[25](index=25&type=chunk) - The increase was mainly driven by an **$84.2 million increase in retained earnings and a $52.8 million decrease in accumulated other comprehensive loss**, partially offset by **$9.9 million in stock repurchases**[25](index=25&type=chunk) - **Book value per common share reached a record $21.41** at September 30, 2025, **up from $20.71** at June 30, 2025. Tangible book value per common share (non-GAAP) also **increased to $14.13**[25](index=25&type=chunk) [Capital Allocation & Operations](index=6&type=section&id=Capital%20Allocation%20%26%20Operations) This section outlines the company's capital allocation strategies, including stock repurchases and dividends, alongside its branch network expansion initiatives [Stock Repurchases and Dividends](index=6&type=section&id=Stock%20Repurchases%20and%20Dividends) The company repurchased 350,000 shares of common stock in Q3 2025, a decrease from the prior quarter, resulting in a shareholder buyback yield of 0.18%, while paying a consistent cash dividend of $0.20 per share - The company repurchased **350,000 shares** of common stock in Q3 2025, **equating to a shareholder buyback yield of 0.18%**[27](index=27&type=chunk) - In Q2 2025, **1.0 million shares** were repurchased, with a **shareholder buyback yield of 0.49%**[27](index=27&type=chunk) - A **cash dividend of $0.20 per share** was paid in Q3 2025, consistent with the previous quarter[27](index=27&type=chunk) [Branch Network Expansion](index=6&type=section&id=Branch%20Network%20Expansion) Home BancShares expanded its branch network by opening a new branch in San Antonio, Texas, during Q3 2025, adding to its existing presence across multiple states - The company opened a **new branch in San Antonio, Texas**, during Q3 2025[29](index=29&type=chunk) - Current branch count by state: * Arkansas: **75 branches** * Florida: **78 branches** * Texas: **59 branches** * Alabama: **5 branches** * New York City: **1 branch** [Corporate Information & Disclosures](index=6&type=section&id=Corporate%20Information%20%26%20Disclosures) This section provides essential corporate information, including conference call details, company overview, non-GAAP measure explanations, and forward-looking statements [Conference Call Information](index=6&type=section&id=Conference%20Call%20Information) Management will host a conference call on October 16, 2025, to discuss the earnings, with participants encouraged to pre-register via webcast or live call links, or dial in directly - A **conference call to review earnings information will be held on Thursday, October 16, 2025, at 1:00 p.m. CT (2:00 p.m. ET)**[31](index=31&type=chunk) - Participants can **pre-register for the webcast or live call using provided links, or dial in directly**[31](index=31&type=chunk)[32](index=32&type=chunk) [About Home BancShares](index=6&type=section&id=About%20Home%20BancShares) Home BancShares, Inc. is an Arkansas-headquartered bank holding company, operating through its wholly-owned subsidiary, Centennial Bank, which offers a full range of commercial and retail banking services across multiple states, with its common stock traded on the NYSE under 'HOMB' - **Home BancShares, Inc. is a bank holding company headquartered in Conway, Arkansas, founded in 1998**[34](index=34&type=chunk) - Its **wholly-owned subsidiary, Centennial Bank, provides commercial and retail banking services to various clients**[34](index=34&type=chunk) - **Centennial Bank has branch locations in Arkansas, Florida, Texas, South Alabama, and New York City, and HOMB's common stock is traded on the NYSE**[34](index=34&type=chunk) [Non-GAAP Financial Measures Explanation](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The press release includes non-GAAP financial measures, which management uses to provide supplemental information on performance by adjusting GAAP measures for tax benefits and significant non-recurring items, though these are not substitutes for GAAP results and may not be comparable to those of other companies - The press release utilizes **non-GAAP financial measures, such as adjusted net income, PPNR, and tangible book value, to provide supplemental information on the company's performance**[36](index=36&type=chunk) - **Management uses these non-GAAP measures to adjust for tax benefits and significant items not indicative of primary business operations, believing they offer a better understanding of operating results**[36](index=36&type=chunk) - **Non-GAAP disclosures should not replace GAAP results and may not be comparable to measures presented by other companies**[36](index=36&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements subject to inherent risks and uncertainties, with various factors, including economic conditions, credit quality, interest rates, regulatory changes, and technological risks, potentially causing actual results to differ materially from projections - The release includes **forward-looking statements regarding future plans, expectations, goals, and financial outlook, which are not guarantees of future events or results**[39](index=39&type=chunk) - These statements involve **inherent risks and uncertainties, with various factors potentially causing actual results to differ materially**[39](index=39&type=chunk) - Key risk factors include: * Economic conditions (inflation, interest rates, loan demand) * Credit quality and real estate values * Acquisition integration risks * Legislative and regulatory changes * Technological changes and cybersecurity risks * Impacts of natural disasters and public health crises [Investor Relations Contact](index=8&type=section&id=Investor%20Relations%20Contact) For further information, investors can contact Donna Townsell, Director of Investor Relations for Home BancShares, Inc - **Contact information for investor relations is provided: Donna Townsell, Director of Investor Relations, Home BancShares, Inc., (501) 328-4625**[40](index=40&type=chunk) [Detailed Financial Tables](index=9&type=section&id=Detailed%20Financial%20Tables) This section presents comprehensive financial tables, including balance sheets, income statements, selected financial data, net interest margin analysis, and non-GAAP reconciliations [Consolidated End of Period Balance Sheets](index=9&type=section&id=Consolidated%20End%20of%20Period%20Balance%20Sheets) The consolidated balance sheet provides a snapshot of the company's financial position at the end of each quarter, detailing assets, liabilities, and shareholders' equity, with key trends including a record high in loans receivable and an increase in shareholders' equity in Q3 2025 Consolidated End of Period Balance Sheets (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | | | Cash and cash equivalents | $800,920 | $1,101,073 | $1,295,730 | $910,347 | $1,017,677 | | Total investment securities | $4,188,696 | $4,165,260 | $4,273,216 | $4,347,843 | $4,547,710 | | Loans receivable, net | $15,000,323 | $14,898,755 | $14,672,172 | $14,488,620 | $14,511,405 | | Total assets | $22,707,802 | $22,907,022 | $22,992,203 | $22,490,748 | $22,823,117 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | | | | Total deposits | $17,327,696 | $17,488,432 | $17,541,491 | $17,146,297 | $16,705,710 | | Subordinated debentures | $279,093 | $438,957 | $439,102 | $439,246 | $439,394 | | Total liabilities | $18,492,838 | $18,821,706 | $18,949,648 | $18,529,723 | $18,863,328 | | Total shareholders' equity | $4,214,964 | $4,085,316 | $4,042,555 | $3,961,025 | $3,959,789 | [Consolidated Statements of Income](index=10&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income detail the company's revenues and expenses, culminating in net income for the quarter and year-to-date periods, with Q3 2025 seeing a significant increase in net interest income and non-interest income, contributing to record net income Consolidated Statements of Income (in thousands) | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | 9 Months 2025 | 9 Months 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total interest income | $323,532 | $319,115 | $312,542 | $322,714 | $332,845 | $955,189 | $977,063 | | Total interest expense | $97,366 | $99,163 | $97,886 | $105,572 | $117,625 | $294,415 | $345,431 | | Net interest income | $226,166 | $219,952 | $214,656 | $217,142 | $215,220 | $660,774 | $631,632 | | Total credit loss expense | $3,506 | $3,000 | $0 | $16,700 | $18,870 | $6,506 | $31,370 | | Total non-interest income | $51,505 | $51,079 | $45,426 | $41,222 | $42,779 | $148,010 | $127,352 | | Total non-interest expense | $114,838 | $116,040 | $112,928 | $112,210 | $110,045 | $343,806 | $334,726 | | Income before income taxes | $159,327 | $151,991 | $147,154 | $129,454 | $129,084 | $458,472 | $392,888 | | Net income | $123,604 | $118,403 | $115,209 | $100,564 | $100,038 | $357,216 | $301,677 | [Selected Financial Information (Per Share, Performance, Ratios, Expenses)](index=11&type=section&id=Selected%20Financial%20Information%20(Per%20Share,%20Performance,%20Ratios,%20Expenses)) This section provides detailed selected financial information, including per share data, annualized performance metrics, efficiency ratios, and a breakdown of other operating expenses, highlighting the company's strong diluted EPS, ROA, ROE, and ROTCE, along with improving efficiency Per Share Data | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Diluted earnings per common share | $0.63 | $0.60 | $0.58 | $0.51 | $0.50 | | Book value per common share | $21.41 | $20.71 | $20.40 | $19.92 | $19.91 | | Tangible book value per common share (non-GAAP) | $14.13 | $13.44 | $13.15 | $12.68 | $12.67 | Annualized Performance Metrics | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Return on average assets (ROA) | 2.17% | 2.08% | 2.07% | 1.77% | 1.74% | | Return on average common equity (ROE) | 11.91% | 11.77% | 11.75% | 10.13% | 10.23% | | Return on average tangible common equity (ROTCE) (non-GAAP) | 18.28% | 18.26% | 18.39% | 15.94% | 16.26% | Balance Sheet Ratios and Asset Quality | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total loans to total deposits | 88.22% | 86.80% | 85.24% | 86.11% | 88.74% | | Common equity to assets | 18.56% | 17.83% | 17.58% | 17.61% | 17.35% | | Non-performing loans to total loans | 0.56% | 0.63% | 0.60% | 0.67% | 0.68% | | Allowance for credit losses to total loans | 1.87% | 1.86% | 1.87% | 1.87% | 2.11% | | Allowance for credit losses for loans to non-performing loans | 335.22% | 292.72% | 312.27% | 278.99% | 309.16% | [Consolidated Net Interest Margin Analysis](index=14&type=section&id=Consolidated%20Net%20Interest%20Margin%20Analysis) The net interest margin analysis provides a detailed breakdown of interest income and expense components, illustrating the drivers of the company's net interest spread and margin, with Q3 2025 seeing an improvement compared to the previous quarter and year-to-date Net Interest Margin - Three Months Ended September 30, 2025 vs. June 30, 2025 (in thousands) | Metric | Sep 30, 2025 (Avg Balance) | Sep 30, 2025 (Income/Expense) | Sep 30, 2025 (Yield/Rate) | Jun 30, 2025 (Avg Balance) | Jun 30, 2025 (Income/Expense) | Jun 30, 2025 (Yield/Rate) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total interest-earning assets | $19,944,288 | $326,448 | 6.49% | $20,082,933 | $321,641 | 6.42% | | Total interest-bearing liabilities | $14,355,171 | $97,366 | 2.69% | $14,577,597 | $99,163 | 2.73% | | Net interest spread | | | 3.80% | | | 3.69% | | Net interest income and margin - FTE | | $229,082 | 4.56% | | $222,478 | 4.44% | Net Interest Margin - Nine Months Ended September 30, 2025 vs. September 30, 2024 (in thousands) | Metric | Sep 30, 2025 (Avg Balance) | Sep 30, 2025 (Income/Expense) | Sep 30, 2025 (Yield/Rate) | Sep 30, 2024 (Avg Balance) | Sep 30, 2024 (Income/Expense) | Sep 30, 2024 (Yield/Rate) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total interest-earning assets | $19,951,520 | $963,165 | 6.45% | $20,155,315 | $983,199 | 6.52% | | Total interest-bearing liabilities | $14,444,061 | $294,415 | 2.73% | $14,717,454 | $345,431 | 3.14% | | Net interest spread | | | 3.72% | | | 3.38% | | Net interest income and margin - FTE | | $668,750 | 4.48% | | $637,768 | 4.23% | [Non-GAAP Reconciliations](index=16&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures, including adjustments for earnings, return on average assets, return on average common equity, efficiency ratio, PPNR, and tangible book value, offering transparency into the calculation of these adjusted metrics Earnings, As Adjusted (in thousands, except per share data) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | GAAP net income available to common shareholders | $123,604 | $118,403 | $115,209 | $100,564 | $100,038 | | Total adjustments after-tax | $(3,922) | $(3,770) | $(3,274) | $(737) | $(1,044) | | Earnings, as adjusted | $119,682 | $114,633 | $111,935 | $99,827 | $98,994 | | GAAP diluted earnings per share | $0.63 | $0.60 | $0.58 | $0.51 | $0.50 | | Diluted earnings per common share, as adjusted | $0.61 | $0.58 | $0.56 | $0.50 | $0.50 | Tangible Book Value Per Common Share | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Book value per common share | $21.41 | $20.71 | $20.40 | $19.92 | $19.91 | | Tangible book value per common share | $14.13 | $13.44 | $13.15 | $12.68 | $12.67 | Tangible Common Equity to Tangible Assets | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity to assets | 18.56% | 17.83% | 17.58% | 17.61% | 17.35% | | Tangible common equity to tangible assets | 13.08% | 12.35% | 12.09% | 11.98% | 11.78% | [Shareholder Buyback Yield Calculation](index=20&type=section&id=Shareholder%20Buyback%20Yield%20Calculation) This table details the calculation of the shareholder buyback yield, showing the number of shares repurchased, average price, and total cost relative to market capitalization, with the yield decreasing in Q3 2025 compared to the prior quarter Shareholder Buyback Yield (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Shareholder buyback yield | 0.18% | 0.49% | 0.53% | 0.05% | 0.56% | | Shares repurchased | 350 | 1,000 | 1,000 | 96 | 1,000 | | Total share repurchase cost | $10,011 | $27,448 | $29,785 | $2,454 | $26,965 | | Market capitalization beginning of period | $5,613,422 | $5,603,284 | $5,628,361 | $5,387,632 | $4,785,914 | ```

Core Insights - Home BancShares, Inc. reported record net income of $123.6 million for Q3 2025, reflecting strong operational performance and effective management of expenses [3][6][17] - The company achieved a net income, as adjusted (non-GAAP), of $119.7 million, also a record high, indicating consistent profitability improvement [3][6][17] - The efficiency ratio for Q3 2025 was 40.21%, demonstrating effective cost management and operational efficiency [23] Financial Performance - Total revenue (net) for Q3 2025 was $277.7 million, up from $271.0 million in Q2 2025 [3] - Pre-tax, pre-provision, net income (PPNR) reached $162.8 million, reflecting strong earnings power [3][10] - Return on average assets (ROA) improved to 2.17% in Q3 2025, up from 2.08% in Q2 2025, showcasing efficient asset utilization [3][9] - Return on equity (ROE) was 11.91% for Q3 2025, an increase from 11.77% in Q2 2025 [3] Operational Highlights - Net interest margin (NIM) increased to 4.56% in Q3 2025 from 4.44% in Q2 2025, indicating improved profitability from interest-earning assets [3][19] - Non-interest income for Q3 2025 was $51.5 million, with significant contributions from various service charges and fees [22] - Non-performing loans to total loans decreased to 0.56% in Q3 2025 from 0.63% in Q2 2025, reflecting improved credit quality [27] Financial Condition - Total loans receivable reached a record $15.29 billion at September 30, 2025, up from $15.18 billion at June 30, 2025 [25] - Total deposits were $17.33 billion at September 30, 2025, down from $17.49 billion at June 30, 2025 [25] - Shareholders' equity increased to $4.21 billion at September 30, 2025, primarily due to an increase in retained earnings [32] Stock Repurchases and Dividends - The company repurchased 350,000 shares during Q3 2025, resulting in a shareholder buyback yield of 0.18% [34] - A cash dividend of $0.20 per share was paid during the quarter, consistent with the previous quarter [35]

Core Viewpoint - Home BancShares (HOMB) is expected to report a quarterly earnings per share (EPS) of $0.60, reflecting a year-over-year increase of 20%, with revenues projected at $270.43 million, a 4.8% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not reassessed their initial estimates during this period [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Key Financial Metrics - Analysts predict that the 'Net Interest Margin' will reach 4.5%, up from 4.3% a year ago [5]. - The 'Efficiency Ratio' is estimated at 41.2%, slightly down from 41.4% in the same quarter last year [5]. - The consensus for 'Total non-performing loans' is $85.58 million, a decrease from $101.10 million year-over-year [5]. - The 'Average balance - Total interest-earning assets' is expected to be $20.14 billion, down from $20.23 billion a year ago [6]. - The estimated 'Total non-performing assets' is $131.50 million, compared to $144.21 million last year [6]. - 'Net Interest Income' is projected to be $224.38 million, an increase from $215.22 million in the same quarter last year [7]. - 'Total Non-Interest Income' is expected to reach $43.47 million, up from $42.78 million a year ago [7]. - 'Net Interest Income (FTE)' is forecasted at $226.72 million, compared to $217.84 million last year [8]. Stock Performance - Over the past month, Home BancShares shares have declined by 5.4%, while the Zacks S&P 500 composite has increased by 3.5% [8]. - Based on its Zacks Rank 3 (Hold), HOMB is expected to perform in line with the overall market in the near future [8].