Home BancShares, Inc.

Greetings, ladies and gentlemen. Welcome to the Home Bank Shares Incorporated second quarter 2025 earnings call. The purpose of this call is to discuss the information and data provided in the quarterly earnings release issued after the market closed yesterday. The company presenters will begin with prepared remarks, then entertain questions. Please know that if you would like to ask a question during question and answer session, please press star then one on your touch-tone phone. If you decide you want to withdraw your question, please press star then two to remove yourself from the list. The company has asked me to remind everyone to refer to their cautionary notes regarding the forward-looking statements. You will find this note on page three of their form 10K filed with the SEC in February 2025. At this time, all participants are in listen-only mode and this conference is being recorded. If you need operator assistance during the conference, please press star then zero. It is now my pleasure to turn the call over to Donna Townsall, Director of Investor Relations.

Thank you. Good afternoon and welcome to our second quarter conference call. With me for today's discussion is our Chairman, John Allison, Stephen Tipton, Chief Executive Officer of Centennial Bank, Kevin Hester, President and Chief Lending Officer, Brian Davis, our Chief Financial Officer, Chris Fulton, President of CCFG, and Scott Walter of Shore Premier Finance. Opening remarks today will be from our chairman, John Allison.

Thank you. Welcome, everyone. I want to thank you for joining today. Today is the 76th quarter that we've had the privilege to report to our shareholders since going public in June of 06. I have to say that we've come a long way since June of 06, and even a long way from the day in 1998 when my co-founder, Buddy Adcock, and myself made our original purchase of the $22 million Holly Grove Bank in Holly Grove, Arkansas. We've come from $22 million in total assets then to almost $23 billion now, from five employees then to 2,600 now, and from one small office in Holly Grove, Arkansas to 217 banking offices in five states, from a pre-tax There's a pre-tax now income of $400,000 then to an after-tax income of over $400 million now. And from our purchase price of $4.5 million in 1998 to today's New York Stock Exchange market cap of just short of $6 billion. I have to say that HomeBankShare's story is certainly one for the record books. Many of you have been with us and enjoyed this amazing ride through the years. and we're extremely appreciative of your long-term loyalty to what has turned into one of America's best and most profitable banks. For that money, thank you, and I thank you, and our 2,600 associates thank you. We have moved from one of the smallest, it was about 10,000 banks as I recall, to number 64 in total asset size, USY. But with our $5.9 billion New York Stock Exchange market cap, Our company ranks number 35 in the U.S. in market value. I said on the conference call last quarter that the second quarter would look a lot like the first quarter, and we were right on the button. However, this quarter was a little better with a record earnings of $118.4 million, or $0.60 earnings per share, producing a return on assets of $2.08. versus last quarter, $115.2 million in earnings producing and return on assets of $2.07. Pretty consistent, I'd say, in the quarter. Those were non-GAAP numbers, but I'll take them. The non-GAAP ROTCE, Return on Tangible Common Equity, was $18.26, and $17.68 GAAP, Return on Tangible Common Equity. Low-loss reserve remained strong at $186. Tier 1 capital continues to build at 15.6%, leverage raised over 13.4%, total risk-based capital of 19.3%. Over the past 12 months, we have grown tangible common equity by $1.36, or 11.25%, from 1208 to 1344, while at the same time, the company bought back over 3 million shares, equaling about $86 million worth of our common stock, and paid out about $150 million in dividends to our shareholders, all while continuing to grow Casual Common Equity. That performance displays the earnings power of your company. We continue to add more strength to our already-forteous balance sheet, and as we say, strength is no accident, and you never know when you're going to use it, and it's comforting to know that you have it. We've continued to be aggressive on stock buybacks, buying 1 million shares for both the first and the second quarter. That's 2 million shares so far this year. And we introduced for the first time the buyback yield. That's an incremental increase value for each individual shareholder based on the reduction in the number of shares. In addition to that, paying 20 cents per share for quarterly dividends to reward our shareholders. Over the last eight years, we have bought back $520 million of our stock, approximately 22 million shares, and an average value of $22.60, while at the same time, continue to grow Tangible Common Equity. Donna, it is what it is. So far, so good. Nice start to 2025, with already $233.6 million in non-GAAP earnings, and that certainly is a record income for this country. Last year at this time, I think we're around 201 in non-GAAP and 203 in GAAP. So for the first six months so far this year, we're up a little over 15%. I certainly can't ask for much more of these assets. We need to find something to buy that will be additive to our income. I was looking this year for about $450 million in the income, and next year I kind of had targeted half a billion. That just rings the bell with me. who used the term $500 million, half a billion, kind of rings a bell, for 26. But we need to acquire some more assets to get that done. We are presently looking at several opportunities, and we will pick the best of the line to keep the forward progress moving in a positive direction. The intention is to hopefully have an announcement before the next quarter's report. Back to you, Ms. Dobbin.