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Common Stock, Compensation Plans and Other | 9 Months Ended
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Sep. 30, 2024
Equity [Abstract] |
Common Stock, Compensation Plans and Other | 13. Common Stock, Compensation Plans and Other Common Stock The Company’s Restated Articles of Incorporation, as amended, authorize the issuance of up to 300,000,000 shares of common stock, par value $0.01 per share. The Company also has the authority to issue up to 5,500,000 shares of preferred stock, par value $0.01 per share under the Company’s Restated Articles of Incorporation, as amended. Stock Repurchases During the nine months ended September 30, 2024, the Company repurchased a total of 3,426,028 shares with a weighted-average stock price of $24.36 per share. Shares repurchased under the program as of September 30, 2024 since its inception total 26,411,743 shares. The remaining balance available for repurchase is 13,340,257 shares at September 30, 2024. Stock Compensation Plans The Company has a stock option and performance incentive plan known as the Home BancShares, Inc. 2022 Equity Incentive Plan (the “Plan”). The purpose of the Plan is to attract and retain highly qualified officers, directors, key employees, and other persons, and to motivate those persons to improve the Company’s business results. As of September 30, 2024, the maximum total number of shares of the Company’s common stock available for issuance under the Plan was 14,788,000 shares. At September 30, 2024, the Company had 2,072,278 shares of common stock available for future grants and 3,863,313 shares of common stock reserved for issuance pursuant to the Plan. The intrinsic value of the stock options outstanding was $8.4 million, which includes the intrinsic value of vested stock options of $6.2 million at September 30, 2024. The intrinsic value of stock options exercised during the nine months ended September 30, 2024 was approximately $6.8 million. Total unrecognized compensation cost related to non-vested stock option awards, which are expected to be recognized over the vesting periods, was approximately $1.7 million as of September 30, 2024. The table below summarizes the stock option transactions under the Plan at September 30, 2024 and December 31, 2023 and changes during the nine-month period and year then ended:
| For the Nine Months Ended September 30, 2024 |  | For the Year Ended December 31, 2023
| Shares (000) |  | Weighted- Average Exercisable Price |  | Shares (000) |  | Weighted- Average Exercisable Price
Outstanding, beginning of year | 2,776 |  |  | $ | 20.95 |  |  | 2,971 |  |  | $ | 20.45 |
Granted | — |  |  | — |  |  | 25 |  |  | 22.63 |
Forfeited/Expired | (33) |  |  | 21.87 |  |  | (10) |  |  | 23.38 |
Exercised | (952) |  |  | 18.13 |  |  | (210) |  |  | 14.01 |
Outstanding, end of period | 1,791 |  |  | 22.43 |  |  | 2,776 |  |  | 20.95 |
Exercisable, end of period | 1,253 |  |  | 22.11 |  |  | 1,940 |  |  | 20.05 |
Stock-based compensation expense for stock-based compensation awards granted is based on the grant-date fair value. For stock option awards, the fair value is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Accordingly, while management believes that the Black-Scholes option-pricing model provides a reasonable estimate of fair value, the model does not necessarily provide the best single measure of fair value for the Company's employee stock options. There were no options granted during the nine months ended September 30, 2024. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model based on the weighted-average assumptions for expected dividend yield, expected stock price volatility, risk-free interest rate, and expected life of options granted. The assumptions used in determining the fair value of the 2024 and 2023 stock option grants were as follows:
| For the Nine Months Ended September 30, 2024 |  | For the Year Ended December 31, 2023
Expected dividend yield | Not Applicable |  | 2.98 | %
Expected stock price volatility | Not Applicable |  | 27.97 | %
Risk-free interest rate | Not Applicable |  | 3.37 | %
Expected life of options | Not Applicable |  | 6.5 years
The following is a summary of currently outstanding and exercisable options at September 30, 2024:
Options Outstanding |  | Options Exercisable
Exercise Prices |  | Options Outstanding Shares (000) |  | Weighted- Average Remaining Contractual Life (in years) |  | Weighted- Average Exercise Price |  | Options Exercisable Shares (000) |  | Weighted- Average Exercise Price
$16.00 to $17.99 |  | 40 |  |  | 0.54 |  | $ | 17.12 |  |  | 40 |  |  | $ | 17.12 |
$18.00 to $19.99 |  | 188 |  |  | 1.32 |  | 18.53 |  |  | 188 |  |  | 18.53 |
$20.00 to $21.99 |  | 220 |  |  | 3.73 |  | 20.88 |  |  | 186 |  |  | 20.92 |
$22.00 to $23.99 |  | 1,253 |  |  | 3.90 |  | 23.22 |  |  | 767 |  |  | 23.19 |
$24.00 to $25.99 |  | 90 |  |  | 3.65 |  | 25.59 |  |  | 72 |  |  | 25.93 |
|  | 1,791 |  |  |  |  |  |  | 1,253 |  |  |
The table below summarized the activity for the Company’s restricted stock issued and outstanding at September 30, 2024 and December 31, 2023 and changes during the period and year then ended:
| As of September 30, 2024 |  | As of December 31, 2023
| (In thousands)
Beginning of year | 1,429 |  |  | 1,381 |
Issued | 516 |  |  | 261 |
Vested | (461) |  |  | (152) |
Forfeited | (59) |  |  | (61) |
End of period | 1,425 |  |  | 1,429 |
Amount of expense for the nine months and twelve months ended, respectively | $ | 5,963 |  |  | $ | 8,016 |
Total unrecognized compensation cost related to non-vested restricted stock awards, which are expected to be recognized over the vesting periods, was approximately $16.5 million as of September 30, 2024.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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