×

Home BancShares, Inc. Announces Record Quarterly Net Income of $18.4 Million

Home BancShares logo

CONWAY, Ark., Oct. 17, 2013 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced third quarter net income of $18.4 million, or $0.33 diluted earnings per common share, compared to $16.1 million of net income, or $0.28 diluted earnings per common share (split adjusted) for the same quarter in 2012. The Company increased its third quarter earnings by $2.3 million or 14.1% for the three months ended September 30, 2013 compared to the same period of the previous year.

Because acquisitions are growth and capital management strategies, earnings excluding amortization of intangibles after-tax are useful in evaluating the Company. Diluted earnings per common share excluding intangible amortization for the third quarter of 2013 was $0.33 compared to $0.29 diluted earnings per common share excluding intangible amortization (split adjusted) for the same period in 2012.

"Home BancShares has achieved yet another record quarter for net income, making it the tenth consecutive quarter to meet this outstanding accomplishment," said John Allison, Chairman. "Our strong capital levels continue to remain considerably above the regulators' capital requirements, while our strong reserves have placed us in a position to partake in an opportunity like the upcoming Liberty Bank market acquisition. This game-changing merger of these two similarly sized Arkansas-based companies with comparable cultures and history makes us confidently optimistic of the Company's continued bright future when Liberty gets on board."

Randy Sims, Chief Executive Officer, added, "The $704,000 or 4.0% increase from our previously reported record earnings is truly another outstanding achievement. The Company also reported exceptional results for return on average assets of 1.80%, net interest margin of 5.41% and efficiency ratio of 45.67%."

Operating Highlights

Net interest income for the third quarter of 2013 increased 20.0% to $46.4 million from $38.6 million during the third quarter of 2012. For the third quarter of 2013, the effective yield on non-covered loans and covered loans was 5.88% and 12.76%, respectively. Net interest margin, on a fully taxable equivalent basis, was 5.41% for the quarter just ended compared to 4.65% in the third quarter of 2012, an increase of 76 basis points. The Company was able to expand its net interest margin because of its ability to improve pricing on interest bearing deposits combined with additional yield on FDIC loss sharing loans which more than offset the lower interest rates on newly originated loans in the loan portfolio during this historically low rate environment.

The Company reported $9.3 million of non-interest income for the third quarter of 2013, compared to $10.6 million for the third quarter of 2012. The most important components of the third quarter non-interest income were $4.1 million from service charges on deposits accounts, $3.7 million from other service charges and fees, $1.5 million from mortgage lending income, $1.0 million from other income, $777,000 from gain on sale of other real estate owned, $519,000 from insurance commissions, and $303,000 from gain on sale of assets offset by the $3.2 million of net amortization on the FDIC indemnification asset.

Non-interest expense for the third quarter of 2013 was $26.7 million compared to $24.0 million for the third quarter of 2012. This increase is primarily associated with the acquisition of Heritage Bank of Florida and Premier Bank during the fourth quarter of 2012. Excluding merger expenses non-interest expense improved by $173,000 for the third quarter of 2013 from the second quarter of 2013. For the third quarter of 2013, our core efficiency ratio was 44.8% which was an enhancement of 100 basis points from the second quarter of 2013.

Financial Condition

Total non-covered loans were $2.38 billion at September 30, 2013 compared to $2.33 billion at December 31, 2012. Total covered loans were $308.1 million at September 30, 2013 compared to $384.9 million at December 31, 2012. Total deposits were $3.25 billion at September 30, 2013 compared to $3.48 billion at December 31, 2012. Total assets were $4.16 billion at September 30, 2013 compared to $4.24 billion at December 31, 2012.

Non-performing non-covered loans were $28.4 million as of September 30, 2013, of which $21.3 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 1.20% as of September 30, 2013 compared to 1.17% as of December 31, 2012. Non-performing non-covered assets were $42.8 million as of September 30, 2013, of which $25.5 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 1.15% as of September 30, 2013 compared to 1.30% as of December 31, 2012.

The Company's allowance for loan losses for non-covered loans was $37.6 million at September 30, 2013, or 1.58% of total non-covered loans, compared to $45.2 million, or 1.94% of total non-covered loans, at December 31, 2012. As of September 30, 2013 and December 31, 2012, the allowance for loan losses for non-covered loans plus discount for credit losses on non-covered loans acquired to total non-covered loans plus discount for credit losses on non-covered loans acquired was 4.68% and 5.26%, respectively. As of September 30, 2013 and December 31, 2012, the Company's allowance for loan losses for non-covered loans was 132% and 166% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $545.1 million at September 30, 2013 compared to $515.5 million at December 31, 2012, an increase of $29.7 million. Book value per common share was $9.69 at September 30, 2013 compared to $9.17 (split adjusted) at December 31, 2012.

Branches

During the third quarter, the Company opened two de novo branch locations one on Highway 30A in Seagrove, Florida and the other in Pensacola, Florida. The Company currently has no plans for additional de novo branch locations. During the fourth quarter of 2013, the Company has plans to close one branch in Panama City, Florida.

Upon completion of the Liberty Bank transaction announced at the end of the second quarter, Centennial Bank will have 46 additional branch locations across Northeast Arkansas, Northwest Arkansas and Western Arkansas. The acquisition is expected to close the day following the Home BancShares and Liberty Bancshares shareholder meetings to be held on October 23, 2013. The Company currently has 46 branches in Arkansas, 54 branches in Florida and 7 branches in Alabama.

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, October 17, 2013. Interested parties can listen to this call by calling 1-888-317-6016 and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-344-7529, Passcode: 10033818, which will be available until October 25, 2013 at 8:00 a.m. CT (9:00 ET). Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com under "Investor Relations" for 12 months.

General

This release contains forward-looking statements regarding the Company's plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand, the ability to successfully integrate new acquisitions and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Home BancShares, Inc.'s financial results is included in its Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission.

Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Our 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 locations in Central Arkansas, North Central Arkansas, Southern Arkansas, the Florida Keys, Southwestern Florida, Central Florida, the Florida Panhandle and South Alabama. Upon completion of the Liberty Bank transaction, Centennial Bank will have additional locations in Northeast Arkansas, Northwest Arkansas and Western Arkansas. The Company's common stock is traded through the NASDAQ Global Select Market under the symbol "HOMB."

Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
(In thousands) 2013 2013 2013 2012 2012
ASSETS
Cash and due from banks $ 77,261 $ 75,148 $ 95,604 $ 101,972 $ 86,381
Interest-bearing deposits with other banks 35,080 97,576 206,753 129,883 69,248
Cash and cash equivalents 112,341 172,724 302,357 231,855 155,629
Federal funds sold 10,700 2,475 2,850 17,148 1,775
Investment securities - available-for-sale 839,560 736,406 724,929 726,223 755,197
Investment securities - held-to-maturity 9,528 -- -- -- --
Loans receivable not covered by loss share 2,378,838 2,339,242 2,309,146 2,331,199 2,076,248
Loans receivable covered by FDIC loss share 308,072 329,802 358,669 384,884 407,416
Allowance for loan losses (38,748) (41,450) (45,935) (50,632) (54,440)
Loans receivable, net 2,648,162 2,627,594 2,621,880 2,665,451 2,429,224
Bank premises and equipment, net 119,637 119,737 117,534 113,883 105,131
Foreclosed assets held for sale not covered by loss share 14,158 15,985 18,861 20,393 14,942
Foreclosed assets held for sale covered by FDIC loss share 24,320 27,073 29,928 31,526 31,799
FDIC indemnification asset 101,192 116,071 126,275 139,646 153,758
Cash value of life insurance 59,602 59,401 59,185 59,219 53,366
Accrued interest receivable 14,275 14,424 14,367 16,305 14,872
Deferred tax asset, net 46,045 46,655 40,907 46,998 33,680
Goodwill 85,681 85,681 85,681 85,681 77,090
Core deposit and other intangibles 9,655 10,457 11,259 12,061 9,792
Other assets 66,450 56,654 69,494 75,741 51,654
Total assets $ 4,161,306 $ 4,091,337 $ 4,225,507 $ 4,242,130 $ 3,887,909
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing $ 757,328 $ 733,374 $ 717,830 $ 666,414 $ 596,746
Savings and interest-bearing transaction accounts 1,683,010 1,735,280 1,810,957 1,784,047 1,527,829
Time deposits 808,480 856,581 936,649 1,032,991 1,007,894
Total deposits 3,248,818 3,325,235 3,465,436 3,483,452 3,132,469
Federal funds purchased -- -- -- -- --
Securities sold under agreements to repurchase 71,307 73,461 77,194 66,278 61,499
FHLB borrowed funds 270,232 130,251 130,369 130,388 130,506
Accrued interest payable and other liabilities 22,714 25,787 21,020 17,672 24,590
Subordinated debentures 3,093 3,093 3,093 28,867 28,867
Total liabilities 3,616,164 3,557,827 3,697,112 3,726,657 3,377,931
Stockholders' equity
Common stock 563 562 281 281 282
Capital surplus 417,627 416,795 416,741 416,354 420,595
Retained earnings 128,316 114,172 100,730 86,837 77,190
Accumulated other comprehensive income (1,364) 1,981 10,643 12,001 11,911
Total stockholders' equity 545,142 533,510 528,395 515,473 509,978
Total liabilities and stockholders' equity $ 4,161,306 $ 4,091,337 $ 4,225,507 $ 4,242,130 $ 3,887,909
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended Nine Months Ended
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Sep. 30, Sep. 30,
(In thousands) 2013 2013 2013 2012 2012 2013 2012
Interest income
Loans $ 45,003 $ 44,036 $ 44,159 $ 41,203 $ 39,285 $ 133,198 $ 118,156
Investment securities
Taxable 2,645 2,490 2,403 2,708 2,598 7,538 8,518
Tax-exempt 1,507 1,467 1,481 1,544 1,541 4,455 4,610
Deposits - other banks 19 86 98 52 115 203 327
Federal funds sold 2 6 7 9 3 15 8
Total interest income 49,176 48,085 48,148 45,516 43,542 145,409 131,619
Interest expense
Interest on deposits 1,810 2,129 2,485 2,877 3,288 6,424 12,112
Federal funds purchased 3 -- -- 1 -- 3 --
FHLB borrowed funds 910 1,012 1,004 1,030 1,040 2,926 3,334
Securities sold under agreements to repurchase 87 86 80 79 107 253 328
Subordinated debentures 16 17 230 247 482 263 1,527
Total interest expense 2,826 3,244 3,799 4,234 4,917 9,869 17,301
Net interest income 46,350 44,841 44,349 41,282 38,625 135,540 114,318
Provision for loan losses -- 850 -- 1,250 167 850 1,500
Net interest income after provision for loan losses 46,350 43,991 44,349 40,032 38,458 134,690 112,818
Non-interest income
Service charges on deposit accounts 4,072 4,088 3,709 4,062 3,834 11,869 11,007
Other service charges and fees 3,671 3,479 3,437 3,062 3,119 10,587 9,366
Mortgage lending income 1,527 1,619 1,372 1,461 1,550 4,518 3,731
Insurance commissions 519 444 679 368 512 1,642 1,501
Income from title services 156 136 109 133 112 401 329
Increase in cash value of life insurance 203 218 180 202 200 601 671
Dividends from FHLB, FRB, bankers' bank & other 179 401 175 635 182 755 532
Gain on acquisitions -- -- -- 5,205 -- -- --
Gain on sale of SBA loans 79 -- 56 -- 206 135 404
Gain (loss) on sale of premises & equip, net 303 394 15 (30) (5) 712 354
Gain (loss) on OREO, net 777 441 86 121 (222) 1,304 (170)
Gain (loss) on securities, net -- 111 -- (1) -- 111 10
FDIC indemnification accretion/amortization, net (3,177) (2,283) (1,992) 229 373 (7,452) 1,492
Other income 1,009 757 1,199 740 765 2,965 2,555
Total non-interest income 9,318 9,805 9,025 16,187 10,626 28,148 31,782
Non-interest expense
Salaries and employee benefits 12,981 12,957 12,952 12,348 11,652 38,890 34,941
Occupancy and equipment 4,010 3,894 3,594 3,712 3,805 11,498 10,788
Data processing expense 1,114 1,231 1,510 1,331 1,137 3,855 3,599
Other operating expenses 8,610 7,773 7,807 12,186 7,387 24,190 23,463
Total non-interest expense 26,715 25,855 25,863 29,577 23,981 78,433 72,791
Income before income taxes 28,953 27,941 27,511 26,642 25,103 84,405 71,809
Income tax expense 10,590 10,282 9,963 9,703 9,008 30,835 25,726
Net income available to all shareholders $ 18,363 $ 17,659 $ 17,548 $ 16,939 $ 16,095 $ 53,570 $ 46,083
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter Ended Nine Months Ended
(Dollars and shares in thousands, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Sep. 30, Sep. 30,
except per share data) 2013 2013 2013 2012 2012 2013 2012
PER SHARE DATA
Diluted earnings per common share $ 0.33 $ 0.31 $ 0.31 $ 0.30 $ 0.28 $ 0.95 $ 0.81
Diluted earnings per common share excluding
intangible amortization
0.33 0.32 0.32 0.31 0.29 0.97 0.83
Basic earnings per common share 0.33 0.32 0.31 0.30 0.29 0.96 0.82
Dividends per share - common 0.075 0.075 0.065 0.130 0.060 0.215 0.160
Book value per common share 9.69 9.49 9.40 9.17 9.05 9.69 9.05
Tangible book value per common share 7.99 7.78 7.67 7.43 7.51 7.99 7.51
STOCK INFORMATION
Average common shares outstanding 56,256 56,234 56,222 56,145 56,299 56,238 56,316
Average diluted shares outstanding 56,620 56,577 56,535 56,486 56,680 56,577 56,688
End of period common shares outstanding 56,278 56,243 56,229 56,213 56,363 56,278 56,363
ANNUALIZED PERFORMANCE METRICS
Return on average assets 1.80% 1.71% 1.70% 1.67% 1.61% 1.73% 1.56%
Return on average assets excluding
intangible amortization
1.89% 1.80% 1.79% 1.75% 1.69% 1.82% 1.63%
Return on average assets excluding intangible
amortization, provision for loan losses, merger
expenses, bargain purchase gain, gain on life
insurance proceeds and income taxes (Core ROA)
3.09% 2.93% 2.77% 2.88% 2.69% 2.93% 2.67%
Return on average common equity 13.63% 13.27% 13.68% 13.19% 12.78% 13.53% 12.60%
Return on average tangible common equity
excluding intangible amortization
17.04% 16.65% 17.29% 16.46% 15.88% 16.99% 15.66%
Efficiency ratio 45.67% 44.98% 46.03% 49.21% 46.24% 45.56% 47.35%
Core efficiency ratio 44.76% 45.76% 46.39% 44.40% 45.63% 45.63% 46.21%
Net interest margin - FTE 5.41% 5.18% 5.15% 4.86% 4.65% 5.25% 4.65%
Fully taxable equivalent adjustment $ 1,073 $ 1,051 $ 1,075 $ 1,122 $ 1,112 $ 3,199 $ 3,353
Total revenue 58,494 57,890 57,173 61,703 54,168 173,557 163,401
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to
common shareholders
$ 18,363 $ 17,659 $ 17,548 $ 16,939 $ 16,095 $ 53,570 $ 46,083
Intangible amortization after-tax 487 488 487 452 421 1,462 1,226
Earnings excluding intangible amortization $ 18,850 $ 18,147 $ 18,035 $ 17,391 $ 16,516 $ 55,032 $ 47,309
GAAP diluted earnings per share $ 0.33 $ 0.31 $ 0.31 $ 0.30 $ 0.28 $ 0.95 $ 0.81
Intangible amortization after-tax -- 0.01 0.01 0.01 0.01 0.02 0.02
Diluted earnings per share excluding
intangible amortization
$ 0.33 $ 0.32 $ 0.32 $ 0.31 $ 0.29 $ 0.97 $ 0.83
OTHER OPERATING EXPENSES
Advertising $ 363 $ 120 $ 693 $ 549 $ 534 $ 1,176 $ 1,898
Merger and acquisition expenses 1,034 1 28 5,169 296 1,063 1,988
Amortization of intangibles 802 802 802 743 694 2,406 2,018
Electronic banking expense 926 960 863 845 809 2,749 2,330
Directors' fees 188 210 190 196 206 588 611
Due from bank service charges 136 168 133 124 137 437 412
FDIC and state assessment 684 677 630 571 588 1,991 1,742
Insurance 572 555 566 501 448 1,693 1,273
Legal and accounting 227 394 322 225 231 943 840
Other professional fees 404 490 473 392 411 1,367 1,263
Operating supplies 309 332 343 299 280 984 835
Postage 212 231 207 216 219 650 680
Telephone 291 291 303 282 270 885 792
Other expense 2,462 2,542 2,254 2,074 2,264 7,258 6,781
Total other operating expenses $ 8,610 $ 7,773 $ 7,807 $ 12,186 $ 7,387 $ 24,190 $ 23,463
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
(Dollars in thousands) 2013 2013 2013 2012 2012
BALANCE SHEET RATIOS
Total loans to total deposits 82.70% 80.27% 76.98% 77.97% 79.29%
Common equity to assets 13.1% 13.0% 12.5% 12.2% 13.1%
Tangible common equity to tangible assets 11.1% 10.9% 10.5% 10.1% 11.1%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period $ 40,498 $ 42,302 $ 45,170 $ 47,292 $ 49,846
Loans charged off 5,101 3,361 3,318 3,739 3,984
Recoveries of loans previously charged off 2,245 807 450 367 1,430
Net loans charged off 2,856 2,554 2,868 3,372 2,554
Provision for loan losses -- 750 -- 1,250 --
Balance, end of period $ 37,642 $ 40,498 $ 42,302 $ 45,170 $ 47,292
Discount for credit losses on non-covered loans acquired 77,413 80,322 80,305 81,717 14,712
Net charge-offs on loans not covered by loss share
to average non-covered loans
0.48% 0.44% 0.50% 0.61% 0.50%
Allowance for loan losses for non-covered loans
to total non-covered loans
1.58% 1.73% 1.83% 1.94% 2.28%
Allowance for loan losses for non-covered loans plus
discount for credit losses on non-covered loans
acquired to total non-covered loans plus discount
for credit losses on non-covered loans acquired
4.68% 4.99% 5.13% 5.26% 2.97%
Covered
Balance, beginning of period $ 952 $ 3,633 $ 5,462 $ 7,148 $ 6,665
Loans charged off -- 3,187 1,840 1,688 354
Recoveries of loans previously charged off 154 6 11 2 --
Net loans charged off (154) 3,181 1,829 1,686 354
Provision for loan losses before benefit attributable
to FDIC loss share agreements
-- 500 -- -- 837
Benefit attributable to FDIC loss share agreements -- (400) -- -- (670)
Net provision for loan losses -- 100 -- -- 167
Increase in FDIC indemnificaton asset -- 400 -- -- 670
Balance, end of period $ 1,106 $ 952 $ 3,633 $ 5,462 $ 7,148
Total Allowance for Loan Losses $ 38,748 $ 41,450 $ 45,935 $ 50,632 $ 54,440
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans $ 17,187 $ 17,798 $ 19,078 $ 21,336 $ 20,183
Non-covered loans past due 90 days or more 11,248 11,514 6,692 5,937 2,424
Total non-performing non-covered loans 28,435 29,312 25,770 27,273 22,607
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 14,158 15,985 18,861 20,393 14,942
Other non-performing non-covered assets 185 172 285 164 1
Total other non-performing non-covered assets 14,343 16,157 19,146 20,557 14,943
Total non-performing non-covered assets $ 42,778 $ 45,469 $ 44,916 $ 47,830 $ 37,550
Allowance for loan losses for non-covered loans to
non-performing non-covered loans
132.38% 138.16% 164.15% 165.62% 209.19%
Non-performing non-covered loans to total
non-covered loans
1.20% 1.25% 1.12% 1.17% 1.09%
Non-performing non-covered assets to total
non-covered assets
1.15% 1.26% 1.21% 1.30% 1.14%
Home BancShares, Inc.
Loan Information
(Unaudited)
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
(Dollars in thousands) 2013 2013 2013 2012 2012
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 1,026,937 $ 1,003,391 $ 1,014,301 $ 1,019,039 $ 887,895
Construction/land development 314,232 281,994 254,673 254,800 282,269
Agricultural 31,906 31,119 34,288 32,513 28,403
Residential real estate loans
Residential 1-4 family 529,732 528,260 531,698 549,269 473,412
Multifamily residential 117,639 120,899 122,998 129,742 105,369
Total real estate 2,020,446 1,965,663 1,957,958 1,985,363 1,777,348
Consumer 30,478 32,671 33,823 37,462 35,433
Commercial and industrial 268,900 287,351 269,463 256,908 200,160
Agricultural 30,612 26,462 16,573 19,825 36,239
Other 28,402 27,095 31,329 31,641 27,068
Loans receivable not covered by loss share $ 2,378,838 $ 2,339,242 $ 2,309,146 $ 2,331,199 $ 2,076,248
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 134,843 $ 143,922 $ 155,345 $ 164,723 $ 175,195
Construction/land development 51,492 56,447 58,384 66,713 71,958
Agricultural 1,253 1,784 2,256 2,282 2,289
Residential real estate loans
Residential 1-4 family 102,673 107,612 120,246 125,625 130,425
Multifamily residential 10,525 10,644 9,443 9,567 10,062
Total real estate 300,786 320,409 345,674 368,910 389,929
Consumer 17 20 28 39 70
Commercial and industrial 6,291 8,193 11,712 14,668 16,878
Agricultural -- -- -- -- --
Other 978 1,180 1,255 1,267 539
Loans receivable covered by loss share $ 308,072 $ 329,802 $ 358,669 $ 384,884 $ 407,416
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
September 30, 2013 June 30, 2013
Average Income/ Yield/ Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate Balance Expense Rate
ASSETS
Earning assets
Interest-bearing balances due from banks $ 40,756 $ 19 0.18% $ 135,431 $ 86 0.25%
Federal funds sold 4,411 2 0.18% 10,169 6 0.24%
Investment securities - taxable 579,867 2,645 1.81% 572,997 2,490 1.74%
Investment securities - non-taxable - FTE 183,341 2,462 5.33% 172,439 2,394 5.57%
Loans receivable - FTE 2,668,421 45,121 6.71% 2,663,627 44,160 6.65%
Total interest-earning assets 3,476,796 50,249 5.73% 3,554,663 49,136 5.54%
Non-earning assets 569,829 592,822
Total assets $ 4,046,625 $ 4,147,485
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 1,691,077 $ 637 0.15% $ 1,779,269 $ 741 0.17%
Time deposits 832,149 1,173 0.56% 900,809 1,388 0.62%
Total interest-bearing deposits 2,523,226 1,810 0.28% 2,680,078 2,129 0.32%
Federal funds purchased 1,511 3 0.00% 1 -- 0.00%
Securities sold under agreement to repurchase 73,924 87 0.47% 72,599 86 0.48%
FHLB borrowed funds 144,467 910 2.50% 130,282 1,012 3.12%
Subordinated debentures 3,093 16 2.05% 3,093 17 2.20%
Total interest-bearing liabilities 2,746,221 2,826 0.41% 2,886,053 3,244 0.45%
Non-interest bearing liabilities
Non-interest bearing deposits 738,526 704,847
Other liabilities 27,315 22,939
Total liabilities 3,512,062 3,613,839
Shareholders' equity 534,563 533,646
Total liabilities and shareholders' equity $ 4,046,625 $ 4,147,485
Net interest spread 5.32% 5.09%
Net interest income and margin - FTE $ 47,423 5.41% $ 45,892 5.18%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Nine Months Ended
September 30, 2013 September 30, 2012
Average Income/ Yield/ Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate Balance Expense Rate
ASSETS
Earning assets
Interest-bearing balances due from banks $ 108,646 $ 203 0.25% $ 188,874 $ 327 0.23%
Federal funds sold 10,060 15 0.20% 4,527 8 0.24%
Investment securities - taxable 571,375 7,538 1.76% 580,492 8,518 1.96%
Investment securities - non-taxable - FTE 173,796 7,275 5.60% 155,636 7,505 6.44%
Loans receivable - FTE 2,672,088 133,577 6.68% 2,451,553 118,614 6.46%
Total interest-earning assets 3,535,965 148,608 5.62% 3,381,082 134,972 5.33%
Non-earning assets 592,438 577,227
Total assets $ 4,128,403 $ 3,958,309
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 1,747,040 $ 2,191 0.17% $ 1,457,121 $ 2,788 0.26%
Time deposits 906,015 4,233 0.62% 1,188,074 9,324 1.05%
Total interest-bearing deposits 2,653,055 6,424 0.32% 2,645,195 12,112 0.61%
Federal funds purchased 510 3 0.00% 232 -- 0.00%
Securities sold under agreement to repurchase 72,078 253 0.47% 68,425 328 0.64%
FHLB borrowed funds 135,093 2,926 2.90% 138,288 3,334 3.22%
Subordinated debentures 11,023 263 3.19% 43,541 1,527 4.68%
Total interest-bearing liabilities 2,871,759 9,869 0.46% 2,895,681 17,301 0.80%
Non-interest bearing liabilities
Non-interest bearing deposits 704,123 551,628
Other liabilities 22,967 22,563
Total liabilities 3,598,849 3,469,872
Shareholders' equity 529,554 488,437
Total liabilities and shareholders' equity $ 4,128,403 $ 3,958,309
Net interest spread 5.16% 4.53%
Net interest income and margin - FTE $ 138,739 5.25% $ 117,671 4.65%

CONTACT: Brian S. Davis Chief Accounting Officer & Investor Relations Officer Home BancShares, Inc. (501) 328-4770

Source:Home BancShares, Inc.