2022 Centennial Bank Corporate Social Responsibility Report

A MESSAGE FROM THE CEO

As a customer- and community-focused bank, Centennial Bank is committed to delivering on each of our core values while balancing the interests of our customers, communities and shareholders.

Throughout our daily operations, we seek ways to reduce our environmental impact. One example is by eliminating or reducing the use of paper. Over 70% of our customer accounts utilize E-statements, and we recycled 1.2 million pounds of paper in 2022 due to a new policy to recycle 100% of shredded paper. We also recycled an estimated 13,777 pounds of electronic waste last year.

Our bankers continue to lend a helping hand in the local communities by serving on boards of non-profit organizations, teaching financial literacy classes in local schools and participating in local grill events supporting local non-profit organizations. Plus, our corporation has donated millions of dollars to local schools, non-profits and law enforcement agencies throughout our footprint.

Attention to governance matters has certainly grown in the financial spotlight throughout the past year and continues to be an area of focus at Centennial Bank, where we hold ourselves to a high standard of ongoing process improvement.

In 2022, our company completed our largest conversion to date as we welcomed the customers of Happy State Bank to the Centennial family. The employees from Happy State are active members of their communities and continuously work to identify new opportunities to lead, serve and make a difference. Such parallel mindsets have made us great partners.

Instead of just quoting statistics, the next few pages illustrate some of the ongoing efforts of corporate citizenship here at Centennial Bank, where we believe in making tomorrow better than today.

Tracy French President and CEO Centennial Bank

CORPORATE GOVERNANCE

TONE AT THE TOP

Our Board of Directors and management team lead by example, bringing a wealth of knowledge and experience with them each day. This experienced team collectively provides sound guidance that fuels our operating model, including local leadership and local decisions in every market we serve. We maintain a strong corporate governance framework to ensure adherence to effective policies, accurate and timely reporting and ethical business standards. The result is an environment that allows us to strive for integrity in everything we do.

THE ESSENTIALS

We have strong risk management practices, including the 3 Lines of Defense methodology.

1ST LINE

• We identify & manage risks.

2ND LINE

• We establish the Risk Appetite Tolerance and ensure it’s managed effectively throughout the enterprise.

3RD LINE

• We provide independent assurance to the bank’s board and regulators regarding the effectiveness of the risk management framework.

• Our board-level committees then oversee decision making for key lines of business.

• Our management-level committees provide operational and risk oversight throughout the enterprise.

OUR COMBINED HBI & CENTENNIAL BOARD EXPERIENCE TOTALS

459 YEARS of Director and Operator Experience.

OUR COMBINED MANAGEMENT TEAM EXPERIENCE TOTALS

189 YEARS of Banking Experience.

OUR REGIONAL BOARDS ARE

13% WOMEN

FOOTPRINT

Centennial Bank serves customers in 223 branches in five states, guided by our mission to consistently exceed expectations.

76 Arkansas

63 Texas

5 Alabama

1 New York

78 Florida

5 States served

223 Branches

2,856 Employees

$22.9 Billion in assets for parent company Home BancShares

WHO WE ARE

VISION:

We put service first, so our customers can trust us as the premier bank in the communities we serve. We strive to be a bank that finds opportunities where others may see obstacles while allowing our associates to thrive in a challenging and meaningful banking career.

VALUES:

• We dedicate ourselves to consistent quality service.

• Our commitment to our customers is our top priority.

• We assist with quality financial performance.

• We encourage community involvement through leadership

• We strive for excellence in products, standards and impact.

MISSION:

Through our community banking philosophy, we are dedicated to consistently exceeding the expectations of our customers, shareholders and bankers while enriching the communities we serve.

ENVIRONMENTAL

2022 Annualized Data

1,164,350 POUNDS OF PAPER SHREDDED AND RECYCLED

9,652 TREES SAVED

216,427 GALLONS OF OIL SAVED

2,250,955 KILOWATTS OF ENERGY SAVED

2,108 CUBIC YARDS OF LANDFILLS SAVED

4,280,143 GALLONS OF WATER SAVED

ELECTRONIC NOTICES & STATEMENTS INFORMATION

(Numbers as of 12/31/22)

161,486

E-Notices were delivered in 2022.

70% of checking accounts & 62% of savings accounts enrolled in E-notices.

3,172,987

E-Statements were delivered in 2022.

70% of checking accounts & 63% of savings enrolled in E-statements.

SHRED-IT REPORT DATA

100% of shredded paper is recycled annually.

ENVIRONMENTAL

2022 Annualized data

DATA HARDWARE

99% of the company’s 2,700 computers are Energy Star Rated.

95% of the 600 printing devices in our fleet are Energy Star Rated.

99% of our 4,000 installed computer monitors carry a TCO or Energy Star Rating.

CORPORATE BANKING OFFICES

Our Corporate Office and many of our branch locations utilize various energy-saving features, such as smart thermostats, energy-efficient mechanical units, LED Lighting (many with motion detection sensors, energy-efficient water heaters and low water flow plumbing.

13,777 POUNDS OF ELECTRONIC WASTE WAS RECYCLED THROUGHOUT 2022.

OUR STAFF

2022 Annualized Data

We have a staff of 2,856 full-time equivalent (FTE) employees.

MALE OFFICERS COMPRISED

9% OF ALL STAFF

26% OF OUR ST AFF IDENTIFIED AS A PERSON OF COLOR IN 2022

66% OF LEADERSHIP ROLES IN THE COMPANY ARE HELD BY FEMALES

18% OF BANK OFFICERS ARE FEMALE

EMPLOYEE BENEFITS

Our employees are among our most important assets, and their benefits are our way of caring for them. In that spirit, we also care for each other through the Home BancCares Employee Assistance Fund.

This employee-funded program is designed to help employees cope with unexpected financial hardships that place undue stress on an employee and their families.

Each approved applicant is eligible for one grant per calendar year. It’s just another way the Centennial Bank Family takes care of each other.

The company also provides benefit-eligible employees with benefits such as group term life, long-term disability, a 401(k) and Health Savings Account (HSA) matching with additional employer contributions based on wellness initiatives

EDUCATION

EMPLOYEE TRAINING:

All Centennial Bank staff receive in-person and computer-based training, including regulatory compliance issues relevant to their job duties, hands-on new employee orientation, company policies and procedures, software applications and professional development. Just a few examples of the diverse curriculum are below:

• Diversity & Inclusion: Race, LGBTQ, Religion & other Protected Characteristics

• CRA Program and Services

• Detecting Elder Abuse

• UDAAP: Mitigating Risks

• Sales Leadership: Ethics

• A Military Lending Act (MLA) Guide

• Fair Credit Reporting Act (FCRA): Essentials

• American with Disabilities Act

• Fair Lending

• Diversity: Valuing Differences

OUR EMPLOYEE CLASSES TOTALED

174,368 IN 2022.

WE SPENT A TOTAL OF

31,492 HOURS IN TRAINING.

COMMUNITY INVOLVEMENT

● We have in-house loan products, known as and Happy Home Buyer, to provide loans to those otherwise not qualified for a traditional mortgage loan product. In 2022, we funded 102 loans with 100% financing for a total of $17,530,573.00.

● In 2022, our in-house Affinity Loan Program customers employed in fields related to education, emergency med services, firefighting, law enforcement and nursing for a primary purchase or refinancing.

● Centennial Bank and the Federal Home Loan Bank of Dallas (FHLB Dallas) have awarded a $750,000 Affordable Housing Program (AHP) subsidy to Searcy Housing Authority to demolish 28 outdated homes and rebuild 60 modernized, affordable housing rental units in “The South Grove” project.

● Centennial facilitated FHLB Home Equity Leverage Partnership (HELP) grants to 22 first-time homebuyers to help with down payment assistance for a total of $202,919.00.

● Our Bank On certified account, Simply 100, resulted in 1,515 account openings in 2022.

● Centennial participated as a Bronze Sponsor the National Association of Minority Mortgage Bankers of America.

THE DREAM LOAN PROGRAM AND HAPPY HOME BUYER PROGRAMS FUNDED 102 LOANS WITH 100% FINANCING FOR A TOTAL OF $17,530,573.00 IN 2022.

OUR BANKERS IN THE COMMUNITY

Habitat for Humanity is one of our longstanding passions. Whether we’re serving on the local board or hammering nails, no job is too small!

OUR BANKERS IN THE COMMUNITY

Financial literacy is another passion we’re committed to at Centennial, and our partnership with Junior Achievement and Greenpath Financial Wellness ensures we’re educating tomorrow’s leaders today.

OUR BANKERS IN THE COMMUNITY

● Our Kids Bank Program provides children the opportunity to learn how to manage money and develop their skills to grow their funds throughout each phase of life. The program is supported by our Financial Literacy Bank Officer.

● Sponsored the Women’s Foundation of Arkansas Save 10 Program, which provided financial education and resources to promote financial independence among women.

● AR Next Money Magazine Distributed

78,500 copies to Arkansas High Schools after its March 31, 2022 publication date.

BANK STAFF LOGGED

1,531 HOURS DEDICATED TO FINANCIAL LITERACY ACROSS OUR FOOTPRINT IN 2022.

VOLUNTEER SPOTLIGHT (POSTHUMOUSLY):

John Primeau is the focus of our Volunteer Spotlight for 2022. John was always generous with his time and talents while spreading financial awareness and expertise throughout the entire South Florida region. In 2022 alone, John sat on the Board of Trustees of Women in Distress of Broward County, the Board of Directors of Broward Partnership for the Homeless, the Board of Trustees of Barry University, and the State of Florida Consumer Affairs Council. John provided expertise and leadership by helping to provide services for the homeless within Broward County. His work helped to sustain crisis shelters that support the victims of domestic violence and their children, and he advocated for higher education amongst students within South Florida.

John was formerly the President of the Area Agency on Aging (AAA) of Broward County. This organization was particularly special to John, as it is a nonprofit organization serving Broward County’s senior residents, age 60 or older. The AAA of Broward County also operates the Aging and Disability Resource Center, a one-stop source of information regarding services available for seniors, persons 18 and over with disabilities, their families and caregivers. While serving as President, John always displayed astounding leadership by assisting in planning, developing, coordinating, and evaluating programs.

John also served as a member of the Broward County Housing Finance Authority Committee and the United Way Audit Committee. John always brought a special light and life to many charitable and community endeavors with his continuous support of his community. At Centennial, we pride ourselves in our community banking philosophy which leads to exceptional service and strong customer relationships. We have consistently maintained a strong commitment to the communities we serve through our involvement with and support of local charities. We would like to recognize John for setting the standard for being a good corporate neighbor. His commitment to his community and the bank will be greatly missed by many.