HOMB’s Top-Tier Performance Continues into 2026 with First Quarter Earnings of $118.2 Million, EPS of $0.60 and ROA of 2.09% (Form 8-K)

HOMB's Top-Tier Performance Continues into 2026 with First Quarter

Earnings of $118.2 Million, EPS of $0.60 and ROA of 2.09%

Conway, AR - Home BancShares, Inc. (NYSE: HOMB) ("Home" or the "Company"), parent company of Centennial Bank, released quarterly earnings today.

Quarterly Highlights

Metric			Q1 2026			Q4 2025			Q3 2025			Q2 2025			Q1 2025
Net income			$118.2 million			$118.2 million			$123.6 million			$118.4 million			$115.2 million
Net income, as adjusted (non-GAAP)(1)			$118.2 million			$117.9 million			$119.7 million			$114.6 million			$111.9 million
Total revenue (net)			$266.7 million			$282.1 million			$277.7 million			$271.0 million			$260.1 million
Income before income taxes			$152.2 million			$153.3 million			$159.3 million			$152.0 million			$147.2 million
Pre-tax, pre-provision, net income (PPNR) (non-GAAP)(1)			$152.7 million			$167.7 million			$162.8 million			$155.0 million			$147.2 million
PPNR, as adjusted (non-GAAP)(1)			$152.7 million			$167.1 million			$157.7 million			$150.4 million			$142.8 million
Pre-tax net income to total revenue (net)			57.08%			54.35%			57.38%			56.08%			56.58%
Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP)(1)			57.06%			54.14%			55.53%			54.39%			54.91%
P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP)(1)			57.27%			59.46%			58.64%			57.19%			56.58%
P5NR, as adjusted (non-GAAP)(1)			57.25%			59.25%			56.80%			55.49%			54.91%
ROA			2.09%			2.06%			2.17%			2.08%			2.07%
ROA, as adjusted (non-GAAP)(1)			2.09%			2.05%			2.10%			2.02%			2.01%
NIM			4.51%			4.61%			4.56%			4.44%			4.44%
Purchase accounting accretion			$1.1 million			$1.3 million			$1.3 million			$1.2 million			$1.4 million
ROE			11.09%			11.04%			11.91%			11.77%			11.75%
ROE, as adjusted (non-GAAP)(1)			11.08%			11.01%			11.54%			11.39%			11.41%
ROTCE (non-GAAP)(1)			16.56%			16.65%			18.28%			18.26%			18.39%
ROTCE, as adjusted (non-GAAP)(1)			16.55%			16.60%			17.70%			17.68%			17.87%
Diluted earnings per share			$0.60			$0.60			$0.63			$0.60			$0.58
Diluted earnings per share, as adjusted (non-GAAP)(1)			$0.60			$0.60			$0.61			$0.58			$0.56
Non-performing assets to total assets			0.97%			0.55%			0.56%			0.60%			0.56%
Common equity tier 1 capital			16.7%			16.3%			16.1%			15.6%			15.4%
Leverage			14.3%			14.1%			13.8%			13.4%			13.3%
Tier 1 capital			16.7%			16.3%			16.1%			15.6%			15.4%
Total risk-based capital			19.5%			19.1%			18.9%			19.3%			19.1%
Allowance for credit losses to total loans			1.90%			1.90%			1.87%			1.86%			1.87%
Book value per share			$22.15			$21.88			$21.41			$20.71			$20.40
Tangible book value per share (non-GAAP)(1)			$14.87			$14.60			$14.13			$13.44			$13.15
Dividends per share			$0.21			$0.21			$0.20			$0.20			$0.195
Shareholder buyback yield(2)			0.25%			0.27%			0.18%			0.49%			0.53%

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

(2) Calculation of this metric is included in the schedules accompanying this release.

"HOMB works for the shareholder each and every day. Our strong, consistent philosophy continues to deliver performance results that ranked us #2 in the U.S. on S&P's banks over $10 billion for the year 2025. During current uncertain economic and geopolitical times, I am very proud that HOMB continues to be a safe place with a strong balance sheet for our customers and shareholders," said John Allison, Chairman.

Quarterly Financial Performance Trends
During the first quarter of 2026, the Company delivered stable and resilient earnings performance, with net income of approximately $118.2 million, consistent with the prior quarter and up year over year. Net income, as adjusted (non-GAAP)(1), of approximately $118.2 million further reflects the strength and sustainability of underlying operations.						The chart below reflects solid year-over-year growth in pre-tax, pre-provision net revenue (PPNR) during the first quarter of 2026, reflecting continued strength in operating performance. PPNR totaled approximately $152.7 million, representing an increase of $5.6 million, or 3.8%, compared to the first quarter of 2025. PPNR, as adjusted (non-GAAP)(1), increased $9.9 million, or 6.9%, year over year to approximately $152.7 million, underscoring improved underlying profitability and disciplined expense management.
Dollar amounts presented below in thousands.
Net interest income after credit loss expense increased by $6.2 million from Q4 2025 to Q1 2026 and $8.7 million on a year over year basis. These results reflect a generally upward trend throughout the periods presented, supported by effective balance sheet management and stable credit performance. Despite normal quarterly variability, the Company delivered consistent, high-quality earnings, underscoring the strength and resilience of its net interest income.						Non-interest income was $42.8 million for the first quarter of 2026, reflecting a normalization from the levels experienced in prior quarters, primarily due to certain non-continuing other income items. Results remained supported by a diversified mix of revenue streams, with performance over the prior several quarters demonstrating the Company's ability to generate stable non-interest income despite typical quarterly variability. Management continues to emphasize disciplined execution and strategic growth initiatives to support long-term, sustainable income generation.

Total revenue (net) during the first quarter of 2026 was approximately $266.7 million, representing an increase of $6.6 million, or 2.5%, year over year. While revenue moderated from the fourth quarter, results demonstrate the durability of the Company's revenue base and provide a strong foundation for further growth as 2026 progresses.						During the first quarter of 2026, the Company demonstrated continued expense discipline and effective balance sheet management. Interest expense declined to $87.1 million primarily due to the declining interest rate environment. Non-interest expense remained well controlled at approximately $114.0 million, consistent with prior quarter levels. Together, these trends highlight the Company's focus on cost efficiency and operating discipline, supporting strong operating leverage and overall earnings performance.
The Company continued to demonstrate strong operating discipline throughout Q1 2026, posting an efficiency ratio of 41.6%. While modestly higher than the fourth quarter level, the efficiency ratio reflects continued, effective expense management and remains well controlled. The efficiency ratio, as adjusted (non-GAAP)(1), of approximately 42.0% underscores the consistency of underlying operating efficiency, highlighting the Company's ability to balance investment in growth with disciplined cost management.						The Company delivered strong and improving return on average assets (ROA) during the first quarter of 2026, with an ROA of approximately 2.09%. This performance reflects both a year over year and sequential quarterly increase, underscoring continued balance sheet efficiency and disciplined execution. ROA, as adjusted (non-GAAP)(1), also increased to approximately 2.09%, demonstrating consistent earnings quality and effective asset utilization. Overall, Q1 2026 ROA highlights the Company's ability to generate attractive returns while maintaining operational and financial stability.

The tables below present additional key financial metrics over the past five quarters, including net interest margin (NIM), yield on interest-earning assets, rate on interest-bearing liabilities, and net interest spread. These metrics are fundamental indicators of the Company's profitability and operational efficiency.
Book value per share increased to $22.15 at March 31, 2026, representing steady growth from $20.40 at March 31, 2025. Tangible book value per share (non-GAAP)(1) also rose consistently to $14.87 over the same period. The continued sequential improvement reflects retained earnings growth and disciplined capital management, underscoring the Company's ability to build shareholder value through a range of operating conditions. Book value per share and tangible book value per share (non-GAAP)(1) as of March 31, 2026 are both records for the Company.

Operating Highlights

Net income for the three-month period ended March 31, 2026 was $118.2 million, or $0.60 diluted earnings per share. When adjusting for non-fundamental items, net income and diluted earnings per share on an as-adjusted basis (non-GAAP), were $118.2 million(1) and $0.60 per share(1), respectively, for the three months ended March 31, 2026.

Our net interest margin was 4.51% and 4.61% for the three-month periods ended March 31, 2026 and December 31, 2025, respectively. The yield on loans was 7.08% and 7.30% for the three months ended March 31, 2026 and December 31, 2025, respectively, as average loans increased from $15.51 billion to $15.68 billion. The rate on interest bearing deposits decreased to 2.35% as of March 31, 2026, from 2.47% as of December 31, 2025, while average interest-bearing deposits increased from $13.47 billion to $13.66 billion.

During the first quarter of 2026, there was no event interest income compared to $2.6 million of event interest income for the fourth quarter of 2025. The decrease in event income was dilutive to the net interest margin by six basis points. Purchase accounting accretion on acquired loans was $1.1 million and $1.3 million for the three-month periods ended March 31, 2026 and December 31, 2025, respectively, and average purchase accounting loan discounts were $12.5 million and $13.8 million for the three-month periods ended March 31, 2026 and December 31, 2025, respectively.

Net interest income on a fully taxable equivalent basis was $226.6 million for the three-month period ended March 31, 2026, and $233.8 million for the three-month period ended December 31, 2025. This decrease in net interest income for the three-month period ended March 31, 2026, was the result of a $12.2 million decrease in interest income, which was partially offset by a $4.9 million decrease in interest expense. The $12.2 million decrease in interest income was primarily the result of an $11.7 million decrease in loan income and a $1.1 million decrease in income from investments. These reductions were partially offset by a $540,000 increase in income from deposits with other banks. The $4.9 million decrease in interest expense was due to a $4.6 million decrease in interest expense on deposits and a $293,000 decrease in interest expense on FHLB and other borrowed funds.

The Company reported $42.8 million of non-interest income for the first quarter of 2026. The most important components of non-interest income were $10.0 million from service charges on deposit accounts, $9.8 million from other service charges and fees, $9.1 million from other income, $5.5 million from trust fees, $4.4 million in mortgage lending income, $2.5 million from dividends from FHLB, FRB, FNBB and other, and $1.4 million from the increase in cash value of life insurance, which were partially offset by $1.2 million in expense from the fair value adjustment for marketable securities.

Non-interest expense for the first quarter of 2026 was $114.0 million. The most important components of non-interest expense were $63.2 million salaries and employee benefits expense, $26.6 million in other operating expense, $14.9 million in occupancy and equipment expenses, $8.9 million in data processing expenses and $394,000 in merger and acquisition expenses. Included within other expense was the FDIC special assessment credit, which lowered expense by $1.7 million. For the first quarter of 2026, our efficiency ratio was 41.59%, and our efficiency ratio, as adjusted (non-GAAP), was 41.99%(1).

Financial Condition

Total loans receivable were $15.63 billion at March 31, 2026, compared to $15.69 billion at December 31, 2025. Total deposits were $17.74 billion at March 31, 2026, compared to $17.48 billion at December 31, 2025. Total assets were $23.20 billion at March 31, 2026, compared to $22.88 billion at December 31, 2025.

During the first quarter of 2026, the Company had a $52.6 million decrease in loans. Our community banking footprint experienced $100.5 million in organic loan decline during the quarter ended March 31, 2026, while Centennial CFG experienced $47.9 million of organic loan growth in the first quarter, with $2.06 billion of loans outstanding at March 31, 2026.

Non-performing loans to total loans were 1.16% and 0.54% at March 31, 2026 and December 31, 2025, respectively. Non-performing assets to total assets were 0.97% and 0.55% at March 31, 2026 and December 31, 2025, respectively. The increase in non-performing loans and assets was primarily due to one loan relationship with a balance of $92.1 million being placed on non-accrual status during the quarter ended March 31, 2026. Net loans charged-off were $1.4 million and $2.5 million for the three months ended March 31, 2026 and December 31, 2025, respectively. The charge-off detail by region for the quarters ended March 31, 2026 and December 31, 2025 can be seen below.

For the Three Months Ended March 31, 2026
(in thousands)						Texas						Arkansas						Centennial CFG						Shore Premier Finance						Florida						Alabama						Total
Charge-offs						$	1,720					$	982					$	-					$	-					$	137					$	10					$	2,849
Recoveries						(788)						(278)						-						(277)						(54)						(3)						(1,400)
Net charge-offs (recoveries)						$	932					$	704					$	-					$	(277)					$	83					$	7					$	1,449

For the Three Months Ended December 31, 2025
(in thousands)						Texas						Arkansas						Centennial CFG						Shore Premier Finance						Florida						Alabama						Total
Charge-offs						$	600					$	1,420					$	-					$	400					$	542					$	101					$	3,063
Recoveries						(345)						(195)						-						(4)						(49)						(4)						(597)
Net charge-offs (recoveries)						$	255					$	1,225					$	-					$	396					$	493					$	97					$	2,466

At March 31, 2026, non-performing loans were $182.1 million, and non-performing assets were $224.1 million. At December 31, 2025, non-performing loans were $85.0 million, and non-performing assets were $124.8 million.

The table below shows the non-performing loans and non-performing assets by region as of March 31, 2026:

(in thousands)						Texas						Arkansas						Centennial CFG						Shore Premier Finance						Florida						Alabama						Total
Non-accrual loans						$	119,333					$	21,833					$	787					$	12,131					$	25,532					$	23					$	179,639
Loans 90+ days past due						1,077						36						-						-						1,368						-						2,481
Total non-performing loans						120,410						21,869						787						12,131						26,900						23						182,120
Foreclosed assets held for sale						16,164						1,638						22,812						-						260						-						40,874
Other non-performing assets						-						-						-						1,140						-						-						1,140
Total other non-performing assets						16,164						1,638						22,812						1,140						260						-						42,014
Total non-performing assets						$	136,574					$	23,507					$	23,599					$	13,271					$	27,160					$	23					$	224,134

The table below shows the non-performing loans and non-performing assets by region as December 31, 2025:

(in thousands)						Texas						Arkansas						Centennial CFG						Shore Premier Finance						Florida						Alabama						Total
Non-accrual loans						$	24,234					$	18,234					$	787					$	10,048					$	24,645					$	54					$	78,002
Loans 90+ days past due						2,383						291						-						3,286						1,020						-						6,980
Total non-performing loans						26,617						18,525						787						13,334						25,665						54						84,982
Foreclosed assets held for sale						15,988						771						22,812						-						260						-						39,831
Total other non-performing assets						15,988						771						22,812						-						260						-						39,831
Total non-performing assets						$	42,605					$	19,296					$	23,599					$	13,334					$	25,925					$	54					$	124,813

The Company's allowance for credit losses on loans was $297.6 million, or 1.90% of total loans, at both March 31, 2026 and December 31, 2025. As of March 31, 2026 and December 31, 2025, the Company's allowance for credit losses on loans was 163.43% and 350.17% of its total non-performing loans, respectively.

Shareholders' equity was $4.35 billion at March 31, 2026, which increased approximately $52.7 million from December 31, 2025. The net increase in shareholders' equity is primarily associated with the $76.9 million increase in retained earnings. This was partially offset by the $13.5 million decrease in accumulated other comprehensive income and the $13.9 million in stock repurchases for the quarter. Book value per common share was $22.15 at March 31, 2026, compared to $21.88 at December 31, 2025. Tangible book value per common share (non-GAAP) was $14.87(1) at March 31, 2026, compared to $14.60(1) at December 31, 2025. Book value per common share and tangible book value per common share, as of March 31, 2026, were both records for the Company.

Stock Repurchases and Dividends

During the three-month period ended March 31, 2026, the Company repurchased 507,622 shares of common stock, which equated to a shareholder buyback yield of 0.25%(2). In comparison, during the three-month period ended December 31, 2025, the Company repurchased 540,706 shares of common stock, which equated to a shareholder buyback yield of 0.27%(2). The Company defines shareholder buyback yield as the percentage of the Company's market capitalization spent on share repurchases. It reflects how much the Company is returning to the shareholders by reducing the number of outstanding shares, and it is calculated by dividing the Company's total share repurchase cost for the period by the Company's total market capitalization at the beginning of the period.

In addition, during the quarter ended March 31, 2026, the Company paid a dividend of $0.21 per share. This cash dividend was consistent with the dividend paid during the fourth quarter of 2025.

Branches

The Company currently has 75 branches in Arkansas, 78 branches in Florida, 59 branches in Texas, 8 branches in Tennessee, 5 branches in Alabama and one branch in New York City.

Acquisition

Effective April 1, 2026, the Company completed its previously announced acquisition of Mountain Commerce Bancorp, Inc. ("Mountain Commerce" or "MCBI"), parent company of Mountain Commerce Bank, pursuant to the terms of a previously disclosed definitive agreement and plan of merger (the "Merger Agreement"). The acquisition was completed through a series of mergers resulting in Mountain Commerce merging into Home and Mountain Commerce Bank merging into Centennial (collectively, the "Merger").

Under the terms of the Merger Agreement, Home issued approximately 5.4 million shares of its common stock valued at approximately $146 million as of April 1, 2026, with MCBI shareholders receiving 0.85 shares of Home common stock for each share of MCBI common stock they owned at closing. No cash consideration was paid in connection with the Merger, except for cash paid in lieu of fractional shares of Home common stock, equal to $26.77 multiplied by any resulting fractional shares of Home common stock to which the former MCBI shareholders would have been entitled.

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 p.m. ET) on Thursday, April 16, 2026. We strongly encourage all participants to pre-register for the conference call webcast or the live call using one of the following links. First, participants can pre-register for the conference call webcast using the following link: https://events.q4inc.com/attendee/401378152. Participants who pre-register will be given a unique webcast link to gain immediate access to the conference call webcast. Second, participants can pre-register for the live call using the following link: https://www.netroadshow.com/events/login/LE9zwo3kRY977wuorjaoPFDRQh4g9LFnhMn. Participants who pre-register will be given the phone number and unique access codes to gain immediate access to the live call. Participants may pre-register now, or at any time prior to the call, and will immediately receive simple instructions via email. The Home BancShares conference call will also be scheduled as an event in your Outlook calendar.

Those without internet access or unable to pre-register may dial in and listen to the live call by calling 1-833-470-1428, Passcode: 493634. A replay of the call will be available by calling 1-866-813-9403, Passcode: 515402, which will be available until April 23, 2026, at 10:59 p.m. CT. Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com.

About Home BancShares

Home BancShares, Inc. is a bank holding company headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, Texas, Tennessee, South Alabama and New York City. The Company's common stock is traded through the New York Stock Exchange under the symbol "HOMB." The Company was founded in 1998. Visit www.homebancshares.com or www.my100bank.com for more information.

Non-GAAP Financial Measures