Financial Data and Key Metrics Changes - Home Bancshares reported record earnings of $119.4 million for Q2 2025, translating to $0.60 earnings per share, with a return on assets of 2.08%, slightly up from 2.07% in the previous quarter [8][9] - The non-GAAP return on tangible common equity was 18.26%, compared to 17.68% in the prior quarter [8] - Loan loss reserves remained strong at 1.86%, with Tier 1 capital at 15.6% and a leverage ratio of 13.4% [9] Business Line Data and Key Metrics Changes - The Trust, Wealth Management, and Mortgage divisions showed meaningful improvements, contributing positively to the bottom line [16] - CCFG closed approximately $500 million in new commitments for the quarter, bringing the year-to-date total to over $800 million, with portfolio growth of about CAD 122 million [22] Market Data and Key Metrics Changes - Deposits decreased by $53 million in Q2 due to seasonal tax payments, but balances grew in May and June, indicating a recovery in deposit activity [15] - The reported net interest margin was 4.44%, consistent with the prior quarter, while the core margin excluding event income increased to 4.43% from 4.42% in Q1 [15] Company Strategy and Development Direction - The company aims to acquire additional assets to enhance income, targeting approximately $450 million in income for 2025 and $500 million for 2026 [12][13] - Management is actively pursuing several acquisition opportunities, with a focus on deals that are accretive to earnings per share [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining strong performance in Q3, expecting results to be similar to the first two quarters of 2025 [28] - The company is cautious about potential rapid interest rate cuts, emphasizing the need for a gradual approach to avoid inflation [37] Other Important Information - The company has been aggressive in stock buybacks, repurchasing over 3 million shares worth approximately $86 million this year [9][11] - A lawsuit settlement resulted in elevated expenses for the quarter, amounting to about $3.5 million, but management expects expenses to normalize in future quarters [80][81] Q&A Session Summary Question: What is driving the recent loan growth? - Management noted that while they are not being more aggressive, they are capitalizing on strong market conditions in certain regions [32][33] Question: What size opportunities are being targeted for M&A? - Management is looking at opportunities in the $2 billion to $6 billion range, focusing on deals that are in or near their market footprint [42][143] Question: What is the outlook for deposit pricing? - Management indicated that deposit pricing remains stable, with some competition but they are able to negotiate slightly lower rates than competitors [52][53] Question: How will the removal of subordinated debt impact margins? - The removal of subordinated debt is expected to benefit the net interest margin by about 5 to 6 basis points, with full benefits realized in Q4 [146] Question: What are the hiring plans for lenders? - Management stated that they do not plan to aggressively hire lenders from competitors, preferring to develop talent internally [131][133] Question: How is the company approaching potential growth opportunities in California? - Management expressed caution regarding the rebuilding opportunities in California, noting that it may take time for significant activity to resume [135]

Financial Data and Key Metrics Changes - The company reported record earnings of $119.4 million for Q2 2025, translating to $0.60 earnings per share, with a return on assets of 2.08%, compared to $115.2 million and a return on assets of 2.07% in the previous quarter [7][8] - Non-GAAP return on tangible common equity was 18.26%, while GAAP return was 17.68% [7] - Loan loss reserves remained strong at 1.86%, with Tier 1 capital at 15.6% and a leverage ratio of 13.4% [8] Business Line Data and Key Metrics Changes - The Trust, Wealth Management, and Mortgage divisions showed meaningful improvements, contributing positively to the bottom line [16] - CCFG closed approximately $500 million in new commitments for Q2, bringing the year-to-date total to over $800 million, with portfolio growth of CAD 122 million [24] Market Data and Key Metrics Changes - Deposits decreased by $53 million in Q2 due to seasonal tax payments, but balances grew in May and June, indicating a recovery in deposit activity [16] - The company operates in dynamic and growing states such as Arkansas, Texas, Alabama, and Florida, which are contributing to its performance [16] Company Strategy and Development Direction - The company aims to acquire additional assets to enhance income, targeting approximately $450 million in income for the current year and $500 million for the next year [12][11] - Management is actively looking at several acquisition opportunities and intends to make an announcement before the next quarterly report [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of margins and expects the third quarter to perform similarly to the first two quarters of 2025 [30] - The company is cautious about potential rapid interest rate cuts, emphasizing the need for a gradual approach to avoid inflation [36] Other Important Information - The company has been aggressive in stock buybacks, purchasing over 3 million shares worth approximately $86 million and paying out about $150 million in dividends [8][10] - A lawsuit settlement resulted in elevated expenses for the quarter, amounting to approximately $3.5 million, but management expects expenses to normalize in the following quarters [81][82] Q&A Session Summary Question: Loan growth and customer base aggressiveness - Management noted that while they are not being more aggressive, they are benefiting from strong markets where their teams are performing well [32][34] Question: M&A opportunities and deal sizes - The company is looking at potential acquisitions in the range of $2 billion to $6 billion, focusing on opportunities that align with their growth strategy [131][132] Question: Deposit pricing and competition - Management indicated that deposit pricing remains competitive but they are able to negotiate slightly lower rates than competitors [56] Question: Impact of sub debt on margin - The removal of sub debt is expected to benefit the net interest margin by about 5 to 6 basis points, with full benefits realized in Q4 [137] Question: Hiring plans - The company does not plan to aggressively hire lenders, preferring to develop talent internally rather than poaching from competitors [120][126] Question: Mortgage banking outlook - The mortgage banking segment has shown variability, with no strong multi-month trends expected until interest rates decrease significantly [90][91]

Core Viewpoint - Home BancShares reported quarterly earnings of $0.58 per share, matching the Zacks Consensus Estimate and showing an increase from $0.52 per share a year ago [1] - The company posted revenues of $271.03 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 3.99% and up from $254.6 million year-over-year [2] Earnings Performance - The earnings surprise for the previous quarter was +3.7%, with actual earnings of $0.56 per share compared to an expected $0.54 [1] - Over the last four quarters, Home BancShares has surpassed consensus EPS estimates only once [1] Revenue Performance - Home BancShares has topped consensus revenue estimates four times over the last four quarters [2] Stock Performance - Since the beginning of the year, Home BancShares shares have increased by approximately 0.7%, while the S&P 500 has gained 6.2% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.57 on revenues of $263.9 million, and for the current fiscal year, it is $2.29 on revenues of $1.05 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 in the top 25% of over 250 Zacks industries, suggesting a favorable outlook [8]

[Executive Summary and Financial Highlights](index=1&type=section&id=Executive%20Summary%20and%20Financial%20Highlights) This section provides an overview of Home BancShares, Inc.'s Q2 2025 financial performance, highlighting record earnings and key profitability metrics [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) Home BancShares, Inc. reported record diluted EPS of $0.60 and net income of $118.4 million for Q2 2025, reflecting consistent strong performance. Total revenue increased to $271.0 million, and key profitability metrics like ROA and ROE also saw improvements - Diluted EPS of **$0.60** and net income of **$118.4 million** are both records for HOMB, highlighting consistent performance[2](index=2&type=chunk) Q2 2025 Performance Metrics | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net income (millions USD) | $118.4 | $115.2 | $100.6 | $100.0 | $101.5 | | Total revenue (net) (millions USD) | $271.0 | $260.1 | $258.4 | $258.0 | $254.6 | | Diluted earnings per share (USD) | $0.60 | $0.58 | $0.51 | $0.50 | $0.51 | | ROA (%) | 2.08 | 2.07 | 1.77 | 1.74 | 1.79 | | ROE (%) | 11.77 | 11.75 | 10.13 | 10.23 | 10.73 | | NIM (%) | 4.44 | 4.44 | 4.39 | 4.28 | 4.27 | | Non-performing assets to total assets (%) | 0.60 | 0.56 | 0.63 | 0.63 | 0.56 | | Common equity tier 1 capital (%) | 15.6 | 15.4 | 15.1 | 14.7 | 14.4 | | Book value per share (USD) | $20.71 | $20.40 | $19.92 | $19.91 | $19.30 | | Dividends per share (USD) | $0.20 | $0.195 | $0.195 | $0.195 | $0.18 | [Stock Repurchases and Dividends](index=3&type=section&id=Stock%20Repurchases%20and%20Dividends) This section details the company's capital return strategy, including share repurchases and dividend payments, reflecting commitment to shareholder value [Shareholder Returns](index=3&type=section&id=Shareholder%20Returns) The Company repurchased 1.0 million shares of common stock in Q2 2025, maintaining a consistent repurchase volume with Q1 2025, resulting in a shareholder buyback yield of 0.49%. Additionally, a cash dividend of $0.20 per share was paid, marking a 2.6% increase from the previous quarter - The Company repurchased **1.0 million shares** of common stock in Q2 2025, consistent with Q1 2025[4](index=4&type=chunk) Shareholder Return Metrics | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Shares repurchased (millions) | 1.0 | 1.0 | | Shareholder buyback yield (%) | 0.49 | 0.53 | | Dividends per share (USD) | $0.20 | $0.195 | | Dividend increase (QoQ) (%) | 2.6 | - | [Operating Highlights](index=3&type=section&id=Operating%20Highlights) This section highlights the company's core operational performance, including net income, earnings per share, net interest margin, and a detailed breakdown of non-interest income and expenses [Net Income and EPS](index=3&type=section&id=Net%20Income%20and%20EPS) For Q2 2025, net income reached a record $118.4 million, with diluted earnings per share at $0.60. Adjusted for non-fundamental items, net income was $114.6 million and diluted EPS was $0.58 Net Income and EPS Performance | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net income (millions USD) | $118.4 | $115.2 | | Diluted earnings per share (USD) | $0.60 | $0.58 | | Net income, as adjusted (non-GAAP) (millions USD) | $114.6 | $111.9 | | Diluted earnings per share, as adjusted (non-GAAP) (USD) | $0.58 | $0.56 | [Net Interest Margin and Income](index=3&type=section&id=Net%20Interest%20Margin%20and%20Income) The net interest margin remained stable at 4.44% for Q2 2025. Net interest income on a fully taxable equivalent basis increased to $222.5 million, driven by a $6.6 million increase in interest income, partially offset by a $1.3 million rise in interest expense Net Interest Margin and Income Metrics | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net interest margin (NIM) (%) | 4.44 | 4.44 | | Yield on loans (%) | 7.36 | 7.38 | | Rate on interest bearing deposits (%) | 2.64 | 2.67 | | Average loans (billions USD) | $15.06 | $14.89 | | Average interest-bearing deposits (billions USD) | $13.43 | $13.20 | | Net interest income (FTE) (millions USD) | $222.5 | $217.2 | | Event interest income (thousands USD) | $516 | $1.3 | | Purchase accounting accretion on acquired loans (millions USD) | $1.2 | $1.4 | - The increase in net interest income was primarily due to a **$5.3 million** increase in loan income and a **$2.3 million** increase in income from deposits with other banks, partially offset by a **$1.0 million** decrease in investment income[8](index=8&type=chunk) [Non-Interest Income and Expense](index=3&type=section&id=Non-Interest%20Income%20and%20Expense) Non-interest income for Q2 2025 was $51.1 million, with significant contributions from other income ($13.5 million) and service charges ($12.6 million). Non-interest expense totaled $116.0 million, primarily driven by salaries and employee benefits ($64.3 million). The efficiency ratio was 41.68% Non-Interest Income and Expense Breakdown | Metric | Q2 2025 | | :--- | :--- | | Non-interest income (millions USD) | $51.1 | | Other income (millions USD) | $13.5 | | Other service charges and fees (millions USD) | $12.6 | | Service charges on deposit accounts (millions USD) | $9.6 | | Trust fees (millions USD) | $5.2 | | Mortgage lending income (millions USD) | $4.8 | | Dividends from FHLB, FRB, FNBB and other (millions USD) | $2.7 | | Increase in cash value of life insurance (millions USD) | $1.4 | | Gain on sale of branches, equipment and other assets, net (thousands USD) | $972 | | Non-interest expense (millions USD) | $116.0 | | Salaries and employee benefits (millions USD) | $64.3 | | Other operating expense (millions USD) | $29.3 | | Occupancy and equipment expenses (millions USD) | $14.0 | | Data processing expenses (millions USD) | $8.4 | | Efficiency ratio (%) | 41.68 | | Efficiency ratio, as adjusted (non-GAAP) (%) | 42.01 | - Included within other income was **$3.5 million** in special income from equity investments and **$885,000** in legal fee reimbursements. Other expense included **$3.3 million** in legal claims expense, partially offset by a **$1.5 million** FDIC assessment reduction[9](index=9&type=chunk)[10](index=10&type=chunk) [Financial Condition](index=4&type=section&id=Financial%20Condition) This section analyzes the company's financial position, including trends in loans, deposits, and total assets, alongside a detailed assessment of asset quality and changes in stockholders' equity [Loans, Deposits, and Assets](index=4&type=section&id=Loans%2C%20Deposits%2C%20and%20Assets) Total loans receivable reached a record $15.18 billion at June 30, 2025, an increase of $228.5 million from the prior quarter, driven by both community banking and Centennial CFG organic growth. Total deposits slightly decreased to $17.49 billion, while total assets also saw a minor decrease to $22.91 billion Loans, Deposits, and Assets Overview | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total loans receivable (billions USD) | $15.18 | $14.95 | | Total deposits (billions USD) | $17.49 | $17.54 | | Total assets (billions USD) | $22.91 | $22.99 | | Organic loan growth (Community Banking) (millions USD) | $106.8 | - | | Organic loan growth (Centennial CFG) (millions USD) | $121.7 | - | - Total loans receivable of **$15.18 billion** were a record for the Company[12](index=12&type=chunk) [Asset Quality](index=4&type=section&id=Asset%20Quality) Non-performing loans and assets increased slightly in Q2 2025, with non-performing loans to total loans at 0.63% and non-performing assets to total assets at 0.60%. Net loans charged-off were $1.1 million for the quarter, a shift from net recoveries in the prior quarter Asset Quality Metrics | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Non-performing loans to total loans (%) | 0.63 | 0.60 | | Non-performing assets to total assets (%) | 0.60 | 0.56 | | Net loans charged-off (recoveries) (millions USD) | $1.1 | ($4.1) | | Non-performing loans (millions USD) | $96.3 | $89.6 | | Non-performing assets (millions USD) | $137.8 | $129.4 | | Allowance for credit losses to total loans (%) | 1.86 | 1.87 | | Allowance for credit losses to total non-performing loans (%) | 292.72 | 312.27 | Net Charge-offs (Recoveries) by Region (Q2 2025) | Region | Charge-offs (thousands USD) | Recoveries (thousands USD) | Net charge-offs (recoveries) (thousands USD) | | :--- | :--- | :--- | :--- | | Texas | 2,588 | (2,172) | 416 | | Arkansas | 462 | (223) | 239 | | Centennial CFG | 181 | — | 181 | | Shore Premier Finance | 582 | (22) | 560 | | Florida | 245 | (577) | (332) | | Alabama | 13 | (2) | 11 | | Total | 4,071 | (2,996) | 1,075 | Non-Performing Loans and Assets by Region (June 30, 2025) | Region | Non-accrual loans (thousands USD) | Loans 90+ days past due (thousands USD) | Total non-performing loans (thousands USD) | Foreclosed assets held for sale (thousands USD) | Total non-performing assets (thousands USD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Texas | 22,487 | 3,557 | 26,044 | 17,259 | 43,303 | | Arkansas | 16,276 | 2,341 | 18,617 | 863 | 19,480 | | Centennial CFG | 787 | — | 787 | 22,842 | 23,629 | | Shore Premier Finance | 11,716 | — | 11,716 | — | 11,716 | | Florida | 37,833 | 1,133 | 38,966 | 565 | 39,531 | | Alabama | 162 | — | 162 | — | 162 | | Total | 89,261 | 7,031 | 96,292 | 41,529 | 137,821 | [Stockholders' Equity](index=5&type=section&id=Stockholders%27%20Equity) Stockholders' equity increased by $42.8 million to $4.09 billion at June 30, 2025, primarily due to a $78.9 million increase in retained earnings, partially offset by an increase in accumulated other comprehensive loss and stock repurchases. Book value per common share and tangible book value per common share both reached record highs Stockholders' Equity Metrics | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Stockholders' equity (billions USD) | $4.09 | $4.04 | | Increase in stockholders' equity (QoQ) (millions USD) | $42.8 | - | | Increase in retained earnings (millions USD) | $78.9 | - | | Increase in accumulated other comprehensive loss (millions USD) | $11.4 | - | | Stock repurchases (millions USD) | $27.5 | - | | Book value per common share (USD) | $20.71 | $20.40 | | Tangible book value per common share (non-GAAP) (USD) | $13.44 | $13.15 | - Book value per common share and tangible book value per common share, as of June 30, 2025, were both records for the Company[19](index=19&type=chunk) [Branches](index=5&type=section&id=Branches) This section provides an overview of the company's physical presence, detailing the number of branches operated across its various geographic markets [Branch Network](index=5&type=section&id=Branch%20Network) Home BancShares, Inc. operates a total of 217 branches across five states: Arkansas (75), Florida (78), Texas (58), Alabama (5), and New York City (1) Branch Count by State/City | State/City | Number of Branches | | :--- | :--- | | Arkansas | 75 | | Florida | 78 | | Texas | 58 | | Alabama | 5 | | New York City | 1 | | Total | 217 | [Conference Call](index=6&type=section&id=Conference%20Call) This section provides details for the upcoming conference call where management will discuss the Q2 2025 financial results and outlook [Q2 2025 Earnings Call Details](index=6&type=section&id=Q2%202025%20Earnings%20Call%20Details) Management will host a conference call on Thursday, July 17, 2025, at 1:00 p.m. CT (2:00 p.m. ET) to discuss the Q2 2025 results. Participants are encouraged to pre-register via webcast or live call links, with replay options available until July 24, 2025 - A conference call to review Q2 2025 results will be held on **Thursday, July 17, 2025, at 1:00 p.m. CT (2:00 p.m. ET)**[23](index=23&type=chunk) - Participants can pre-register for the webcast or live call, and a replay will be available until **July 24, 2025**[23](index=23&type=chunk)[24](index=24&type=chunk) [About Home BancShares](index=6&type=section&id=About%20Home%20BancShares) This section provides a concise overview of Home BancShares, Inc., including its history, operational scope through Centennial Bank, and stock exchange listing [Company Profile](index=6&type=section&id=Company%20Profile) Home BancShares, Inc. is an Arkansas-based bank holding company, founded in 1998, with its wholly-owned subsidiary Centennial Bank offering commercial and retail banking services across Arkansas, Florida, Texas, South Alabama, and New York City. Its common stock is traded on the NYSE under the symbol "HOMB." - Home BancShares, Inc. is a bank holding company headquartered in Conway, Arkansas, founded in **1998**[26](index=26&type=chunk) - Its subsidiary, Centennial Bank, provides commercial and retail banking services with branches in Arkansas, Florida, Texas, South Alabama, and New York City[26](index=26&type=chunk) - The Company's common stock is traded on the New York Stock Exchange under the symbol **"HOMB."**[26](index=26&type=chunk) [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) This section clarifies the use and limitations of non-GAAP financial measures, explaining their purpose in providing supplemental insights into the company's core performance [Explanation of Non-GAAP Measures](index=7&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The press release includes non-GAAP financial measures, such as adjusted net income, PPNR, adjusted ROA, ROE, ROTCE, and tangible book value, which management uses to provide supplemental information on performance. These measures adjust GAAP figures for tax benefits and significant non-recurring items to better reflect core business operations, but are not substitutes for GAAP results and may not be comparable to other companies' non-GAAP measures - The Company uses non-GAAP financial measures (e.g., adjusted net income, PPNR, adjusted ROA, ROE, ROTCE, tangible book value) to provide supplemental information on performance[28](index=28&type=chunk) - These measures adjust GAAP performance for tax benefits and significant items not indicative of primary business operations[28](index=28&type=chunk) - Non-GAAP disclosures should not be viewed as a substitute for GAAP results and may not be comparable to other companies' measures[28](index=28&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This section provides a disclaimer regarding forward-looking statements, outlining the inherent risks and uncertainties that could cause actual results to differ from projections [Disclaimer and Risk Factors](index=8&type=section&id=Disclaimer%20and%20Risk%20Factors) The release contains forward-looking statements about future plans and financial results, which are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially include economic conditions, credit quality, interest rates, acquisitions, regulatory changes, technological risks, and other factors detailed in SEC filings - The release contains forward-looking statements regarding future plans, expectations, goals, and outlook, which are not guarantees of future events[31](index=31&type=chunk) - Forward-looking statements involve inherent risks and uncertainties, including economic conditions, credit quality, interest rates, loan demand, real estate values, and unemployment[31](index=31&type=chunk) - Other factors include the ability to integrate acquisitions, access to capital, legislative and regulatory changes, technological risks, and impacts from natural disasters or public health crises[31](index=31&type=chunk) [Financial Statements and Non-GAAP Reconciliations](index=9&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliations) This section presents comprehensive financial statements, including balance sheets and income statements, along with detailed reconciliations of GAAP to non-GAAP measures and shareholder buyback yield analysis [Consolidated End of Period Balance Sheets](index=9&type=section&id=Consolidated%20End%20of%20Period%20Balance%20Sheets) The balance sheet shows total assets at $22.91 billion as of June 30, 2025, a slight decrease from March 31, 2025. Loans receivable increased to a record $15.18 billion, while total deposits saw a minor decrease to $17.49 billion. Stockholders' equity increased to $4.09 billion Consolidated End of Period Balance Sheets (Key Metrics) | Metric | Jun 30, 2025 (thousands USD) | Mar 31, 2025 (thousands USD) | Dec 31, 2024 (thousands USD) | Sep 30, 2024 (thousands USD) | Jun 30, 2024 (thousands USD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total assets | $22,907,022 | $22,992,203 | $22,490,748 | $22,823,117 | $22,919,905 | | Loans receivable, net | $14,898,755 | $14,672,172 | $14,488,620 | $14,511,405 | $14,485,601 | | Total deposits | $17,488,432 | $17,541,491 | $17,146,297 | $16,705,710 | $16,955,803 | | Total liabilities | $18,821,706 | $18,949,648 | $18,529,723 | $18,863,328 | $19,064,402 | | Total stockholders' equity | $4,085,316 | $4,042,555 | $3,961,025 | $3,959,789 | $3,855,503 | [Consolidated Statements of Income](index=10&type=section&id=Consolidated%20Statements%20of%20Income) For Q2 2025, total interest income was $319.1 million, with total interest expense at $99.2 million, resulting in net interest income of $219.9 million. Non-interest income was $51.1 million, and non-interest expense was $116.0 million. Net income for the quarter was $118.4 million Consolidated Statements of Income (Key Metrics) | Metric | Jun 30, 2025 (thousands USD) | Mar 31, 2025 (thousands USD) | Dec 31, 2024 (thousands USD) | Sep 30, 2024 (thousands USD) | Jun 30, 2024 (thousands USD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total interest income | $319,115 | $312,542 | $322,714 | $332,845 | $327,303 | | Total interest expense | $99,163 | $97,886 | $105,572 | $117,625 | $115,481 | | Net interest income | $219,952 | $214,656 | $217,142 | $215,220 | $211,822 | | Total credit loss expense | $3,000 | $— | $16,700 | $18,870 | $8,000 | | Total non-interest income | $51,079 | $45,426 | $41,222 | $42,779 | $42,774 | | Total non-interest expense | $116,040 | $112,928 | $112,210 | $110,045 | $113,185 | | Income before income taxes | $151,991 | $147,154 | $129,454 | $129,084 | $133,411 | | Net income | $118,403 | $115,209 | $100,564 | $100,038 | $101,530 | [Selected Financial Information](index=11&type=section&id=Selected%20Financial%20Information) This section provides detailed per share data, annualized performance metrics, efficiency ratios, net interest margin, and a breakdown of other operating expenses. It also includes balance sheet ratios, a detailed loans receivable breakdown, allowance for credit losses, and non-performing assets Per Share Data | Metric | Jun 30, 2025 (USD) | Mar 31, 2025 (USD) | Dec 31, 2024 (USD) | Sep 30, 2024 (USD) | Jun 30, 2024 (USD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Diluted earnings per common share | $0.60 | $0.58 | $0.51 | $0.50 | $0.51 | | Dividends per share - common | $0.20 | $0.195 | $0.195 | $0.20 | $0.18 | | Book value per common share | $20.71 | $20.40 | $19.92 | $19.91 | $19.30 | | Tangible book value per common share (non-GAAP) | $13.44 | $13.15 | $12.68 | $12.67 | $12.08 | Annualized Performance Metrics | Metric | Jun 30, 2025 (%) | Mar 31, 2025 (%) | Dec 31, 2024 (%) | Sep 30, 2024 (%) | Jun 30, 2024 (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Return on average assets (ROA) | 2.08 | 2.07 | 1.77 | 1.74 | 1.79 | | Return on average common equity (ROE) | 11.77 | 11.75 | 10.13 | 10.23 | 10.73 | | Return on average tangible common equity (ROTCE) (non-GAAP) | 18.26 | 18.39 | 15.94 | 16.26 | 17.29 | Efficiency and Profitability Ratios | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Efficiency ratio (%) | 41.68 | 42.22 | 42.24 | 41.42 | 43.17 | | Net interest margin - FTE (NIM) (%) | 4.44 | 4.44 | 4.39 | 4.28 | 4.27 | | Pre-tax, pre-provision, net income (PPNR) (non-GAAP) (thousands USD) | $154,991 | $147,154 | $146,154 | $147,954 | $141,411 | | PPNR to total revenue (net) (non-GAAP) (%) | 57.19 | 56.58 | 56.57 | 57.35 | 55.54 | Loans Receivable Breakdown (In thousands) | Loan Type | Jun 30, 2025 (thousands USD) | Mar 31, 2025 (thousands USD) | Dec 31, 2024 (thousands USD) | Sep 30, 2024 (thousands USD) | Jun 30, 2024 (thousands USD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial real estate loans | $5,553,182 | $5,588,681 | $5,426,780 | $5,496,536 | $5,599,925 | | Construction/land development | $2,695,561 | $2,735,760 | $2,736,214 | $2,741,419 | $2,511,817 | | Residential 1-4 family | $2,138,990 | $1,947,872 | $1,956,489 | $1,932,352 | $1,910,143 | | Consumer | $1,218,834 | $1,227,745 | $1,234,361 | $1,219,197 | $1,189,386 | | Commercial and industrial | $2,107,326 | $2,045,036 | $2,022,775 | $2,084,667 | $2,242,072 | | Total loans receivable | $15,180,624 | $14,952,116 | $14,764,500 | $14,823,979 | $14,781,457 | Non-Performing Assets (In thousands) | Metric | Jun 30, 2025 (thousands USD) | Mar 31, 2025 (thousands USD) | Dec 31, 2024 (thousands USD) | Sep 30, 2024 (thousands USD) | Jun 30, 2024 (thousands USD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total non-performing loans | $96,292 | $89,647 | $98,887 | $101,103 | $86,341 | | Total other non-performing assets | $41,529 | $39,743 | $43,470 | $43,103 | $41,410 | | Total non-performing assets | $137,821 | $129,390 | $142,357 | $144,206 | $127,751 | | Non-performing loans to total loans (%) | 0.63 | 0.60 | 0.67 | 0.68 | 0.58 | | Non-performing assets to total assets (%) | 0.60 | 0.56 | 0.63 | 0.63 | 0.56 | [Consolidated Net Interest Margin](index=14&type=section&id=Consolidated%20Net%20Interest%20Margin) The consolidated net interest margin (FTE) remained stable at 4.44% for Q2 2025 and for the six months ended June 30, 2025. This section details average balances, income/expense, and rates for earning assets and interest-bearing liabilities Consolidated Net Interest Margin - FTE (Quarterly) | Metric | Jun 30, 2025 | Mar 31, 2025 | | :--- | :--- | :--- | | Total interest-earning assets (Average Balance) (thousands USD) | $20,082,933 | $19,826,038 | | Total interest-earning assets (Income) (thousands USD) | $321,641 | $315,076 | | Total interest-earning assets (Yield) (%) | 6.42 | 6.45 | | Total interest-bearing liabilities (Average Balance) (thousands USD) | $14,577,597 | $14,399,906 | | Total interest-bearing liabilities (Expense) (thousands USD) | $99,163 | $97,886 | | Total interest-bearing liabilities (Rate) (%) | 2.73 | 2.76 | | Net interest spread (%) | 3.69 | 3.69 | | Net interest income and margin - FTE (thousands USD) (%) | $222,478 (4.44) | $217,190 (4.44) | Consolidated Net Interest Margin - FTE (Six Months Ended) | Metric | Jun 30, 2025 | Jun 30, 2024 | | :--- | :--- | :--- | | Total interest-earning assets (Average Balance) (thousands USD) | $19,955,195 | $20,119,503 | | Total interest-earning assets (Income) (thousands USD) | $636,717 | $647,738 | | Total interest-earning assets (Yield) (%) | 6.43 | 6.47 | | Total interest-bearing liabilities (Average Balance) (thousands USD) | $14,489,242 | $14,694,387 | | Total interest-bearing liabilities (Expense) (thousands USD) | $197,049 | $227,806 | | Total interest-bearing liabilities (Rate) (%) | 2.74 | 3.12 | | Net interest spread (%) | 3.69 | 3.35 | | Net interest income and margin - FTE (thousands USD) (%) | $439,668 (4.44) | $419,932 (4.20) | [Non-GAAP Reconciliations](index=16&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including adjusted earnings, return on average assets, return on average common equity, return on average tangible common equity, efficiency ratio, PPNR, tangible book value per common share, and tangible common equity to tangible assets. Adjustments primarily relate to non-fundamental items like FDIC special assessment, BOLI death benefits, gains/losses on asset sales, and special income from equity investments Earnings, As Adjusted (Non-GAAP Reconciliation) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | GAAP net income available to common shareholders (thousands USD) | $118,403 | $115,209 | $100,564 | $100,038 | $101,530 | | Total adjustments after-tax (thousands USD) | ($3,770) | ($3,274) | ($737) | ($1,044) | $2,386 | | Earnings, as adjusted (non-GAAP) (thousands USD) | $114,633 | $111,935 | $99,827 | $98,994 | $103,916 | | GAAP diluted earnings per share (USD) | $0.60 | $0.58 | $0.51 | $0.50 | $0.51 | | Diluted earnings per common share, as adjusted (non-GAAP) (USD) | $0.58 | $0.56 | $0.50 | $0.50 | $0.52 | Tangible Book Value Per Common Share (Non-GAAP Reconciliation) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Book value per common share (USD) | $20.71 | $20.40 | $19.92 | $19.91 | $19.30 | | Tangible book value per common share (non-GAAP) (USD) | $13.44 | $13.15 | $12.68 | $12.67 | $12.08 | | Total stockholders' equity (thousands USD) | $4,085,316 | $4,042,555 | $3,961,025 | $3,959,789 | $3,855,503 | | Goodwill (thousands USD) | $1,398,253 | $1,398,253 | $1,398,253 | $1,398,253 | $1,398,253 | | Core deposit and other intangibles (thousands USD) | $36,255 | $38,280 | $40,327 | $42,395 | $44,490 | Tangible Common Equity to Tangible Assets (Non-GAAP Reconciliation) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity to assets (%) | 17.83 | 17.58 | 17.61 | 17.35 | 16.82 | | Tangible common equity to tangible assets (non-GAAP) (%) | 12.35 | 12.09 | 11.98 | 11.78 | 11.23 | | Total assets (thousands USD) | $22,907,022 | $22,992,203 | $22,490,748 | $22,823,117 | $22,919,905 | [Shareholder Buyback Yield](index=20&type=section&id=Shareholder%20Buyback%20Yield) The shareholder buyback yield for Q2 2025 was 0.49%, resulting from the repurchase of 1.0 million shares at a total cost of $27.4 million. This metric reflects the percentage of market capitalization spent on share repurchases Shareholder Buyback Yield | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Shareholder buyback yield (%) | 0.49 | 0.53 | 0.05 | 0.56 | 0.67 | | Shares repurchased (thousands) | 1,000 | 1,000 | 96 | 1,000 | 1,400 | | Total share repurchase cost (thousands USD) | $27,448 | $29,785 | $2,454 | $26,965 | $32,847 | | Market capitalization beginning of period (thousands USD) | $5,603,284 | $5,628,361 | $5,387,632 | $4,785,914 | $4,933,582 | - Shareholder buyback yield is defined as the percentage of the Company's market capitalization spent on share repurchases, reflecting capital returned to shareholders by reducing outstanding shares[4](index=4&type=chunk)

Core Points - Home BancShares, Inc. reported record quarterly earnings with net income of $118.4 million and diluted earnings per share of $0.60 for Q2 2025 [3][8] - The company achieved total revenue of $271.0 million for the quarter, an increase from $260.1 million in Q1 2025 [2] - The net interest margin remained stable at 4.44%, with an increase in average loans from $14.89 billion to $15.06 billion [9][11] Financial Performance - Net income for Q2 2025 was $118.4 million, up from $115.2 million in Q1 2025 [2][8] - Adjusted net income was $114.6 million, with diluted earnings per share adjusted to $0.58 [8] - Total revenue increased to $271.0 million from $260.1 million in the previous quarter [2] Operating Metrics - The company’s efficiency ratio was 41.68%, indicating effective cost management [13] - Return on assets (ROA) improved to 2.08% from 2.07% in the previous quarter [2] - Return on equity (ROE) was reported at 11.77%, slightly up from 11.75% in Q1 2025 [2] Capital and Shareholder Returns - The company repurchased 1.0 million shares during Q2 2025, resulting in a shareholder buyback yield of 0.49% [5][6] - A cash dividend of $0.20 per share was declared, representing a 2.6% increase from the previous quarter [6] - Book value per share increased to $20.71 from $20.40 in Q1 2025 [21] Loan and Asset Quality - Total loans receivable reached a record $15.18 billion, up from $14.95 billion in Q1 2025 [15] - Non-performing loans to total loans were 0.63%, slightly up from 0.60% in the previous quarter [17] - The allowance for credit losses on loans was $281.9 million, or 1.86% of total loans [20] Non-Interest Income and Expenses - Non-interest income for Q2 2025 was $51.1 million, with significant contributions from service charges and other income [12] - Non-interest expenses totaled $116.0 million, with salaries and employee benefits being the largest component at $64.3 million [13]

Group 1 - Home BancShares, Inc.'s stock price has declined by 7% since the downgrade to a hold rating in January 2025 [1] - The decline in stock price has made the stock's valuation somewhat attractive [1]

Core Viewpoint - Home BancShares, Inc. is set to release its Second Quarter 2025 earnings on July 16, 2025, followed by a conference call on July 17, 2025, to discuss the results [1]. Group 1: Earnings Release and Conference Call - The earnings release will occur after market close on July 16, 2025 [1]. - A conference call to review the earnings will take place at 1:00 p.m. CT (2:00 p.m. ET) on July 17, 2025 [1]. Group 2: Pre-registration for Conference Call - Participants are encouraged to pre-register for the conference call webcast or live call through provided links [2]. - Pre-registered participants will receive a unique link or phone number with access codes for immediate entry into the call [2]. Group 3: Accessing the Call - Those without internet access can listen to the live call by dialing 1-833-470-1428 with the passcode 171523 [3]. - A replay of the call will be available until July 24, 2025, by calling 1-866-813-9403 with the passcode 539251 [3]. Group 4: Company Overview - Home BancShares, Inc. is a bank holding company based in Conway, Arkansas, with its subsidiary, Centennial Bank, offering a range of banking services [4]. - Centennial Bank operates branches in Arkansas, Florida, South Alabama, Texas, and New York City, with Texas branches functioning as Happy State Bank [4].

Financial Performance - Net income for the three months ended March 31, 2025, was $115,209 thousand, compared to $100,109 thousand for the same period in 2024, reflecting a year-over-year increase of 15.1%[14] - Basic earnings per share for Q1 2025 was $0.58, an increase from $0.50 in Q1 2024, representing a growth of 16%[14] - Comprehensive income for the three months ended March 31, 2025, was $146,777 thousand, compared to $77,759 thousand in Q1 2024, indicating a significant increase of 88.7%[16] - Net income for Q1 2025 was $115,209,000, an increase of 15.5% compared to $100,109,000 in Q1 2024[25] - Total consolidated revenues for the three months ended March 31, 2025, were $357,968,000, slightly down from $358,714,000 in the same period of 2024[180] Asset and Liability Growth - Total assets increased to $22,992,203 thousand as of March 31, 2025, up from $22,490,748 thousand at December 31, 2024, representing a growth of 2.2%[12] - Total liabilities increased to $18,949,648 thousand as of March 31, 2025, from $18,529,723 thousand at December 31, 2024, a rise of 2.3%[12] - Total deposits increased to $17,541,491 thousand as of March 31, 2025, up from $17,146,297 thousand at December 31, 2024, indicating a rise of 2.3%[12] - The company’s total stockholders' equity at the end of Q1 2025 was $4,042,555,000, an increase from $3,811,401,000 at the end of Q1 2024[25] Income and Expense Analysis - Net interest income after credit loss expense rose to $214,656 thousand for Q1 2025, compared to $200,090 thousand in Q1 2024, marking a growth of 7.3%[14] - Non-interest income totaled $45,426 thousand for the three months ended March 31, 2025, compared to $41,799 thousand in the same period of 2024, reflecting an increase of 8.5%[14] - Total non-interest expense for the three months ended March 31, 2025, was $112.9 million, compared to $111.5 million for the same period in 2024, reflecting an increase of 1.3%[137] - Total interest expense decreased to $97,886,000 in Q1 2025 from $112,325,000 in Q1 2024, a decrease of approximately 12.9%[180] Credit Losses and Allowance - The allowance for credit losses on loans was $279,944 thousand as of March 31, 2025, slightly up from $275,880 thousand at December 31, 2024[12] - The provision for credit losses was $0 for the three months ended March 31, 2025, compared to $4,500,000 in the same period of 2024, showing a significant reduction[180] - The Company recorded $4.1 million in net recoveries for credit losses on loans during the three months ended March 31, 2025, compared to a provision of $5.5 million for the same period in 2024[78] Loan Portfolio and Quality - Total loans receivable increased to $14,952.1 million as of March 31, 2025, up from $14,764.5 million at December 31, 2024, reflecting growth in commercial real estate and consumer loans[64] - The Company reported a net increase in loans of $177,767,000 in Q1 2025, compared to an increase of $99,450,000 in Q1 2024[25] - Nonaccrual loans amounted to $86.4 million as of March 31, 2025, down from $93.9 million as of December 31, 2024[82] - The total past due loans as of March 31, 2025, were $119.54 million, compared to $160.08 million as of December 31, 2024, reflecting a decrease of approximately 25.3%[86][87] Securities and Investments - The total fair value of available-for-sale securities was $2,742.8 million as of March 31, 2025[54] - The total amortized cost of investment securities classified as available-for-sale and held-to-maturity is approximately $3.30 billion as of March 31, 2025[49] - The unrealized losses on investments were primarily attributed to changes in interest rates rather than credit quality[60] Stock Repurchase and Dividends - The company repurchased 1,000,000 shares of common stock in Q1 2025, resulting in a total repurchase cost of $29,699,000[25] - Cash dividends paid on common stock were $38,758,000 in Q1 2025, compared to $36,227,000 in Q1 2024, reflecting a 4.2% increase[25] Regulatory and Compliance - The company reported an unqualified opinion on its consolidated financial statements for the year ended December 31, 2024, indicating compliance with accounting principles[190] - The Company adopted an interim final rule allowing a two-year delay of certain effects of CECL on regulatory capital, impacting its risk-based capital ratios[154] Future Outlook - The company anticipates potential market expansion and acquisitions as part of its future strategies, although specific targets were not disclosed[9] - The company noted risks related to economic conditions, regulatory changes, and competition in the banking industry that could impact future performance[10]

Financial Data and Key Metrics Changes - The company reported record earnings of $115.2 million, translating to $0.58 per share, marking a significant increase from previous quarters where earnings were around $100 million [15][16] - Core earnings were reported at $111.9 million or $0.56 per share, with a non-recurring expense of $2 million related to a Texas lawsuit impacting this quarter [16][17] - Revenue grew to $260.1 million, surpassing the previous quarter by $700,000 and the same quarter last year by $13.1 million [17] - The net interest margin improved to 4.44% from 4.39% in the previous quarter and 4.13% a year ago [18] - Nonperforming loans decreased to 0.60% from 0.67%, and nonperforming assets improved to 0.56% from 0.63% [22] Business Line Data and Key Metrics Changes - The community banking segment saw a net loan growth of $187.6 million, with total loans reaching a record level of $14.95 billion [19] - The CCFG segment experienced a decline of $103 million in loans, primarily in the commercial and industrial loan portfolio [19][38] - The commercial real estate book remained stable, with a 5% increase over the past year [41] Market Data and Key Metrics Changes - Deposits increased by over $395 million, bringing the total to $17.5 billion, which led to a decrease in the loan-to-deposit ratio to 85.24% [20] - The rise in interest-bearing deposits decreased to 2.67% from 2.80% at year-end [20] Company Strategy and Development Direction - The company aims to reward shareholders and maintain a conservative approach with strong capital and liquidity [10][12] - Management is focused on maintaining strong asset quality and operational efficiencies while navigating uncertain economic conditions [10][11] - The company is open to M&A opportunities but emphasizes the need for deals that make financial sense [123][136] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance despite economic uncertainties, highlighting a strong quarter and potential for continued growth [10][11] - There is a focus on maintaining a disciplined approach to loan growth and managing expenses effectively [76][156] Other Important Information - The tangible book value increased to $13.15 from $11.79 a year ago, and the return on tangible common equity for the quarter was 18.39% [24] - The company continues to buy back stock, having purchased approximately 1 million shares in the quarter [25] Q&A Session Summary Question: Insights on borrower demand and boat lending - Management noted elevated volume in boat lending due to manufacturer subsidies, but there is some uncertainty affecting project developments [49][53][55] Question: Margin outlook and loan yields - New loan production yields were reported at 7.75%, with competition affecting deposit pricing strategies [57][59] Question: Credit cleanup and industry concerns - Management indicated that there are no new material concerns and that recoveries from previous charge-offs are ongoing [63][64] Question: Legal expenses and future expense control - Elevated legal expenses related to the Texas lawsuit are expected to decrease, with management aiming to maintain expenses around $111 million [74][76] Question: M&A strategy and deal flow - Management is open to smaller deals and multiple transactions, emphasizing the need for accretive opportunities [132][136]

Financial Data and Key Metrics Changes - The company reported record earnings of $115.2 million, translating to $0.58 per share, marking a significant increase from previous quarters [13] - Core earnings were reported at $111.9 million, or $0.56 per share, with a non-recurring expense of $2 million related to a Texas lawsuit impacting this quarter [14] - Revenue reached $260.1 million, surpassing both the fourth quarter of 2024 and the first quarter of 2024 [16] - The net interest margin improved to 4.44%, up from 4.39% in the previous quarter [25] - Non-performing loans improved to 0.6% from 0.67%, and non-performing assets decreased to 0.56% from 0.63% [19][20] - Capital ratios showed strong growth, with CET1 at 15.4% and tangible book value increasing to $13.15 from $11.79 a year ago [21] Business Line Data and Key Metrics Changes - The community bank segment saw strong loan growth of $291.5 million, while the Centennial Commercial Finance Group (CCFG) experienced a decline of $103 million [17] - The total loan portfolio reached a record level of $14.95 billion, with deposits increasing by over $395 million to $17.5 billion [17][18] - The commercial real estate book remained stable, with a 5% increase over the past year [34] Market Data and Key Metrics Changes - The company noted strong deposit growth across all Florida regions, contributing to the overall increase in deposits [26] - The interest rate on interest-bearing deposits decreased to 2.67% from 2.8% at year-end [18] Company Strategy and Development Direction - The management emphasized a conservative approach with strong capital reserves, excellent liquidity, and good asset quality as key to their performance [10] - The company is open to M&A opportunities but remains cautious, focusing on finding the right deals that align with their performance metrics [120][122] - The management plans to continue stock buybacks while also paying down debt, indicating a balanced approach to capital management [86][87] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance despite uncertain economic conditions, highlighting a strong quarter as a potential breakout [10][11] - There is a focus on maintaining strong margins and managing expenses effectively, with expectations of continued loan growth [12][68] - The management is closely monitoring the economic environment and potential impacts from tariffs and interest rate changes [60][72] Other Important Information - The company celebrated the tenth anniversary of CCFG, which has funded over $15 billion in loans [31] - The management highlighted the importance of maintaining a conservative reserve strategy, aiming for a 2% reserve ratio in the future [102][104] Q&A Session Summary Question: Insights on borrower demand and boat lending - Management noted elevated volume in boat lending due to manufacturer subsidies, but acknowledged some uncertainty in the market [49][50] Question: Update on margin and loan yields - New loan production yields were reported at over 7%, with expectations of maintaining margins despite competitive pressures [55][70] Question: Credit cleanup and industry concerns - Management indicated that credit cleanup is nearing completion, with no significant new concerns noted in core markets [58][60] Question: Thoughts on M&A environment - Management expressed readiness to pursue M&A opportunities, particularly smaller deals, while emphasizing the need for sensible pricing [120][122] Question: Future loan growth and market conditions - Management highlighted strong activity in Southeast Florida and Dallas metro areas, with some headwinds from higher payoffs expected [91]