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Home BancShares, Inc. Announces Record Net Income of $66.5 Million for 2013

Home BancShares logo

CONWAY, Ark., Jan. 16, 2014 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced record net income for the year ended December 31, 2013 of $66.5 million compared to $63.0 million for the year ended 2012. Diluted earnings per share for the year ended 2013 was $1.14 per share compared to $1.11 per share for 2012. Excluding the $18.4 million of 2013 merger expenses associated with the recently completed acquisition of Liberty Bancshares, Inc. (Liberty), diluted earnings per share for the year ended 2013 was $1.33 per share. Excluding the net total expense of $2.0 million for merger expenses and gain on acquisition associated with the three acquisitions completed during 2012, diluted earnings per share for the year ended 2012 was $1.13 per share. Excluding merger expenses and acquisition gain, this represents an increase of $0.20 per share or 17.7% for the year ended 2013 when compared to the previous year.

For the fourth quarter of 2013, the Company recorded quarterly net income of $13.0 million, or $0.19 diluted earnings per common share, compared to $16.9 million of net income, or $0.30 diluted earnings per common share for the same quarter in 2012. Excluding the $17.3 million of fourth quarter 2013 merger expenses associated with the Liberty Bancshares, Inc. acquisition, diluted earnings per share for the fourth quarter 2013 was $0.37 per share. Excluding the net total income of $36,000 for merger expenses and gain on acquisition associated with the two acquisitions completed during the fourth quarter of 2012, diluted earnings per share for the fourth quarter 2012 was $0.30 per share. Excluding merger expenses and acquisition gain, this represents an increase of $0.07 per share or 23.3% for the fourth quarter 2013 when compared to the fourth quarter 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 share excluding intangible amortization for the fourth quarter of 2013 was $0.21 compared to $0.31 diluted earnings per share excluding intangible amortization (split adjusted) for the same period in 2012.

"During the fourth quarter we made a game-changing purchase with the Liberty acquisition. It was a historical accomplishment for Home BancShares to be able to complete Arkansas's largest ever in-state bank acquisition plus convert the core operating systems in the same quarter. This impressive execution has the Company in position to realize the anticipated cost savings, thereby rewarding our shareholders," said John Allison, Chairman. "Our team is focused on this important task and is working to recognize these enhancements as quickly as possible. I am looking forward to watching our team succeed in this process. As a result, I believe there is a bright future for us during 2014."

"We have been able to achieve many successes throughout the year that positioned us to be ready to handle the acquisition of Liberty," said Randy Sims, Chief Executive Officer. "As for the financial results, we are proud of the record profit reported for 2013. It was a truly remarkable financial performance year with the Company reporting net income of $66.5 million and diluted earnings per share of $1.14 per share or net income of $77.7 million and diluted earnings per share of $1.33 excluding merger expenses. During the year we have been focused on our efficiency ratio and net interest margin. These efforts have paid off as we are pleased to report an impressive 45.49% core efficiency ratio and 5.19% net interest margin for the year."

Operating Highlights

Each quarter we perform credit impairment tests on the loans acquired in our FDIC loss sharing and non-loss sharing acquisitions. During our fourth quarter 2013 impairment testing, eight FDIC loss sharing pools evaluated by the Company were determined to have a material projected credit improvement. As a result of this improvement, the Company will recognize approximately $14.1 million as an adjustment to yield over the weighted average life of the loans ($1.8 million was recognized during the fourth quarter of 2013). Improvements in credit quality decrease the basis in the related indemnification asset and increase our FDIC true-up liability. This positive event will reduce the indemnification asset by approximately $8.4 million ($1.3 was recognized for the fourth quarter of 2013) and increase our FDIC true-up liability by $1.3 million ($46,000 was recognized for the fourth quarter of 2013). The $8.4 million will be amortized over the weighted average life of the shared-loss agreement. This amortization will be shown as a reduction to FDIC indemnification non-interest income. The $1.3 million will be expensed over the remaining true-up measurement date as other non-interest expense.

Additionally, during our fourth quarter 2013 impairment testing, five FDIC loss sharing pools evaluated by the Company were determined to have material projected credit deterioration. As a result of the deterioration, the Company recognized $3.9 million in the allowance for loan losses for covered loans. Since these losses will be under loss share with the FDIC, the Company was able to establish an additional $3.1 million of indemnification asset. The financial impact of this impairment testing was $891,000 of provision for loan losses for covered loans.

Net interest income for the fourth quarter of 2013 increased 62.4% to $67.1 million from $41.3 million during the fourth quarter of 2012. For the fourth quarter of 2013, the effective yield on non-covered loans and covered loans was 6.00% and 12.93%, respectively. Net interest margin, on a fully taxable equivalent basis, was 5.09% for the quarter just ended compared to 4.86% in the fourth quarter of 2012, an increase of 23 basis points. The pools which have been determined to have material projected credit improvement as a result of the quarterly impairment testing during 2013 and the acquisition of Liberty have significantly changed the mix and metrics on the net interest margin over the year. Although there have been many changes throughout the year, the Company continues to remain focused on expanding its net interest margin through opportunities such as improved pricing on interest-bearing deposits.

The Company reported $12.2 million of non-interest income for the fourth quarter of 2013, compared to $16.2 million for the fourth quarter of 2012. Excluding gain on acquisitions, non-interest income for the fourth quarter of 2013 was $12.2 million compared to $11.0 million for the fourth quarter of 2012. The most important components of the fourth quarter non-interest income were $6.0 million from service charges on deposits accounts, $5.4 million from other service charges and fees, $1.5 million from mortgage lending income, $840,000 from other income, $778,000 from insurance commissions, and $347,000 from gain on sale of OREO offset by the $2.9 million of net amortization on the FDIC indemnification asset.

Non-interest expense for the fourth quarter of 2013 was $54.9 million compared to $29.6 million for the fourth quarter of 2012. Excluding merger expenses, non-interest expense for the fourth quarter of 2013 was $37.6 million compared to $24.4 million for the fourth quarter of 2012. These increases are primarily associated with the acquisition of Liberty during the fourth quarter of 2013. Excluding merger expenses, non-interest expense only increased 53.9% when compared to 60.6% in asset growth. For the fourth quarter of 2013, our core efficiency ratio was 45.22% which is comparable to the 44.40% reported for fourth quarter of 2012. On December 6, 2013, the Company completed the integration of Liberty's operating systems. As a result, during 2014 the Company anticipates it will be able to continue achieving cost savings from the Liberty transaction.

Financial Condition

Total non-covered loans were $4.19 billion at December 31, 2013 compared to $2.33 billion at December 31, 2012. Total covered loans were $282.5 million at December 31, 2013 compared to $384.9 million at December 31, 2012. Total deposits were $5.39 billion at December 31, 2013 compared to $3.48 billion at December 31, 2012. Total assets were $6.81 billion at December 31, 2013 compared to $4.24 billion at December 31, 2012. All of these increases are primarily related to the acquisition of Liberty during the fourth quarter of 2013.

Non-performing non-covered loans were $38.3 million as of December 31, 2013, of which $20.3 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 0.91% as of December 31, 2013 compared to 1.17% as of December 31, 2012. Non-performing non-covered assets were $68.4 million as of December 31, 2013, of which $24.9 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 1.07% as of December 31, 2013 compared to 1.30% as of December 31, 2012.

The Company's allowance for loan losses for non-covered loans was $39.0 million at December 31, 2013, or 0.93% of total non-covered loans, compared to $45.2 million, or 1.94% of total non-covered loans, at December 31, 2012. As of December 31, 2013 and 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 4.89% and 5.26%, respectively. As of December 31, 2013 and 2012, the Company's allowance for loan losses for non-covered loans was 102% and 166% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $841.0 million at December 31, 2013 compared to $515.5 million at December 31, 2012, an increase of $325.5 million. During the fourth quarter of 2013, the Company issued $290.1 million of common stock to the shareholders of Liberty. Book value per common share was $12.92 at December 31, 2013 compared to $9.17 (split adjusted) at December 31, 2012. Tangible book value per common share was $7.94 at December 31, 2013 compared to $7.99 and $7.43 (split adjusted) at September 30, 2013 and December 31, 2012, respectively. Excluding the decline of accumulated other comprehensive income (i.e. UGL on investments) in equity and the quarterly dividend on the common stock the December 31, 2013 tangible book value would have increased by $0.07 from the amount reported as of September 30, 2013.

Branches

During the fourth quarter of 2013, the Company acquired 46 Arkansas locations as a result of Liberty. In an effort to achieve efficiencies from this transaction, the Company subsequently closed or merged 4 locations. Also during the fourth quarter of 2013, the Company closed one branch in Panama City, Florida. The Company currently has no plans for additional de novo branch locations. During the first quarter of 2014, the Company has plans to close one branch in Panacea, Florida. The Company currently has 88 branches in Arkansas, 53 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, January 16, 2014. 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: 10038852, which will be available until January 24, 2014 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 Arkansas, Florida and South Alabama. 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)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(In thousands) 2013 2013 2013 2013 2012
ASSETS
Cash and due from banks $ 104,005 $ 77,261 $ 75,148 $ 95,604 $ 101,972
Interest-bearing deposits with other banks 61,529 35,080 97,576 206,753 129,883
Cash and cash equivalents 165,534 112,341 172,724 302,357 231,855
Federal funds sold 4,275 10,700 2,475 2,850 17,148
Investment securities - available-for-sale 1,175,484 839,560 736,406 724,929 726,223
Investment securities - held-to-maturity 114,621 9,528 -- -- --
Loans receivable not covered by loss share 4,194,437 2,378,838 2,339,242 2,309,146 2,331,199
Loans receivable covered by FDIC loss share 282,516 308,072 329,802 358,669 384,884
Allowance for loan losses (43,815) (38,748) (41,450) (45,935) (50,632)
Loans receivable, net 4,433,138 2,648,162 2,627,594 2,621,880 2,665,451
Bank premises and equipment, net 197,224 119,637 119,737 117,534 113,883
Foreclosed assets held for sale not covered by loss share 29,869 14,158 15,985 18,861 20,393
Foreclosed assets held for sale covered by FDIC loss share 20,999 24,320 27,073 29,928 31,526
FDIC indemnification asset 89,611 101,192 116,071 126,275 139,646
Cash value of life insurance 63,501 59,602 59,401 59,185 59,219
Accrued interest receivable 22,944 14,275 14,424 14,367 16,305
Deferred tax asset, net 89,412 46,045 46,655 40,907 46,998
Goodwill 301,736 85,681 85,681 85,681 85,681
Core deposit and other intangibles 22,298 9,655 10,457 11,259 12,061
Other assets 81,215 66,450 56,654 69,494 75,741
Total assets $ 6,811,861 $ 4,161,306 $ 4,091,337 $ 4,225,507 $ 4,242,130
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing $ 991,161 $ 757,328 $ 733,374 $ 717,830 $ 666,414
Savings and interest-bearing transaction accounts 2,792,423 1,683,010 1,735,280 1,810,957 1,784,047
Time deposits 1,609,462 808,480 856,581 936,649 1,032,991
Total deposits 5,393,046 3,248,818 3,325,235 3,465,436 3,483,452
Federal funds purchased -- -- -- -- --
Securities sold under agreements to repurchase 160,984 71,307 73,461 77,194 66,278
FHLB borrowed funds 350,661 270,232 130,251 130,369 130,388
Accrued interest payable and other liabilities 5,389 22,714 25,787 21,020 17,672
Subordinated debentures 60,826 3,093 3,093 3,093 28,867
Total liabilities 5,970,906 3,616,164 3,557,827 3,697,112 3,726,657
Stockholders' equity
Common stock 651 563 562 281 281
Capital surplus 708,058 417,627 416,795 416,741 416,354
Retained earnings 136,386 128,316 114,172 100,730 86,837
Accumulated other comprehensive income (loss) (4,140) (1,364) 1,981 10,643 12,001
Total stockholders' equity 840,955 545,142 533,510 528,395 515,473
Total liabilities and stockholders' equity $ 6,811,861 $ 4,161,306 $ 4,091,337 $ 4,225,507 $ 4,242,130
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended Year Ended
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Dec. 31, Dec. 31,
(In thousands) 2013 2013 2013 2013 2012 2013 2012
Interest income
Loans $ 65,338 $ 45,003 $ 44,036 $ 44,159 $ 41,203 $ 198,536 $ 159,359
Investment securities
Taxable 4,760 2,645 2,490 2,403 2,708 12,298 11,226
Tax-exempt 1,554 1,507 1,467 1,481 1,544 6,009 6,154
Deposits - other banks 51 19 86 98 52 254 379
Federal funds sold 14 2 6 7 9 29 17
Total interest income 71,717 49,176 48,085 48,148 45,516 217,126 177,135
Interest expense
Interest on deposits 3,320 1,810 2,129 2,485 2,877 9,744 14,989
Federal funds purchased 1 3 -- -- 1 4 1
FHLB borrowed funds 915 910 1,012 1,004 1,030 3,841 4,364
Securities sold under agreements to repurchase 171 87 86 80 79 424 407
Subordinated debentures 255 16 17 230 247 518 1,774
Total interest expense 4,662 2,826 3,244 3,799 4,234 14,531 21,535
Net interest income 67,055 46,350 44,841 44,349 41,282 202,595 155,600
Provision for loan losses 4,330 -- 850 -- 1,250 5,180 2,750
Net interest income after provision for loan losses 62,725 46,350 43,991 44,349 40,032 197,415 152,850
Non-interest income
Service charges on deposit accounts 6,001 4,072 4,088 3,709 4,062 17,870 15,069
Other service charges and fees 5,415 3,671 3,479 3,437 3,062 16,002 12,428
Mortgage lending income 1,470 1,527 1,619 1,372 1,461 5,988 5,192
Insurance commissions 778 519 444 679 368 2,420 1,869
Income from title services 122 156 136 109 133 523 462
Increase in cash value of life insurance 235 203 218 180 202 836 873
Dividends from FHLB, FRB, bankers' bank & other 273 179 401 175 635 1,028 1,167
Gain on acquisitions -- -- -- -- 5,205 -- 5,205
Gain on sale of SBA loans -- 79 -- 56 -- 135 404
Gain (loss) on sale of premises & equip, net (315) 303 394 15 (30) 397 324
Gain (loss) on OREO, net 347 777 441 86 121 1,651 (49)
Gain (loss) on securities, net -- -- 111 -- (1) 111 9
FDIC indemnification accretion/amortization, net (2,949) (3,177) (2,283) (1,992) 229 (10,401) 1,721
Other income 840 1,009 757 1,199 740 3,805 3,295
Total non-interest income 12,217 9,318 9,805 9,025 16,187 40,365 47,969
Non-interest expense
Salaries and employee benefits 19,504 12,981 12,957 12,952 12,348 58,394 47,289
Occupancy and equipment 5,670 4,010 3,894 3,594 3,712 17,168 14,500
Data processing expense 1,538 1,114 1,231 1,510 1,331 5,393 4,930
Other operating expenses 28,162 8,610 7,773 7,807 12,186 52,352 35,649
Total non-interest expense 54,874 26,715 25,855 25,863 29,577 133,307 102,368
Income before income taxes 20,068 28,953 27,941 27,511 26,642 104,473 98,451
Income tax expense 7,118 10,590 10,282 9,963 9,703 37,953 35,429
Net income available to all shareholders $ 12,950 $ 18,363 $ 17,659 $ 17,548 $ 16,939 $ 66,520 $ 63,022
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter Ended Year Ended
(Dollars and shares in thousands, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Dec. 31, Dec. 31,
except per share data) 2013 2013 2013 2013 2012 2013 2012
PER SHARE DATA
Diluted earnings per common share $ 0.19 $ 0.33 $ 0.31 $ 0.31 $ 0.30 $ 1.14 $ 1.11
Diluted earnings per common share excluding intangible amortization 0.21 0.33 0.32 0.32 0.31 1.18 1.14
Basic earnings per common share 0.19 0.33 0.32 0.31 0.30 1.15 1.12
Dividends per share - common 0.075 0.075 0.075 0.065 0.130 0.290 0.290
Book value per common share 12.92 9.69 9.49 9.40 9.17 12.92 9.17
Tangible book value per common share 7.94 7.99 7.78 7.67 7.43 7.94 7.43
STOCK INFORMATION
Average common shares outstanding 62,865 56,256 56,234 56,222 56,145 57,908 56,274
Average diluted shares outstanding 63,234 56,620 56,577 56,535 56,486 58,252 56,630
End of period common shares outstanding 65,082 56,278 56,243 56,229 56,213 65,082 56,213
ANNUALIZED PERFORMANCE METRICS
Return on average assets 0.83% 1.80% 1.71% 1.70% 1.67% 1.43% 1.58%
Return on average assets excluding intangible amortization 0.91% 1.89% 1.80% 1.79% 1.75% 1.52% 1.66%
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) 2.86% 3.09% 2.93% 2.77% 2.88% 2.91% 2.72%
Return on average common equity 6.68% 13.63% 13.27% 13.68% 13.19% 11.27% 12.75%
Return on average tangible common equity excluding intangible amortization 10.83% 17.04% 16.65% 17.29% 16.46% 15.26% 15.87%
Efficiency ratio 66.73% 45.67% 44.98% 46.03% 49.21% 52.44% 47.88%
Core efficiency ratio 45.22% 44.76% 45.76% 46.39% 44.40% 45.49% 45.73%
Net interest margin - FTE 5.09% 5.41% 5.18% 5.15% 4.86% 5.19% 4.70%
Fully taxable equivalent adjustment $ 1,133 $ 1,073 $ 1,051 $ 1,075 $ 1,122 $ 4,332 $ 4,475
Total revenue 83,934 58,494 57,890 57,173 61,703 257,491 225,104
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to common shareholders $ 12,950 $ 18,363 $ 17,659 $ 17,548 $ 16,939 $ 66,520 $ 63,022
Intangible amortization after-tax 740 487 488 487 452 2,202 1,678
Earnings excluding intangible amortization $ 13,690 $ 18,850 $ 18,147 $ 18,035 $ 17,391 $ 68,722 $ 64,700
GAAP diluted earnings per share $ 0.19 $ 0.33 $ 0.31 $ 0.31 $ 0.30 $ 1.14 $ 1.11
Intangible amortization after-tax 0.02 -- 0.01 0.01 0.01 0.04 0.03
Diluted earnings per share excluding intangible amortization $ 0.21 $ 0.33 $ 0.32 $ 0.32 $ 0.31 $ 1.18 $ 1.14
OTHER OPERATING EXPENSES
Advertising $ 653 $ 363 $ 120 $ 693 $ 549 $ 1,829 $ 2,447
Merger and acquisition expenses 17,315 1,034 1 28 5,169 18,378 7,157
Amortization of intangibles 1,218 802 802 802 743 3,624 2,761
Electronic banking expense 1,458 926 960 863 845 4,207 3,175
Directors' fees 179 188 210 190 196 767 807
Due from bank service charges 179 136 168 133 124 616 536
FDIC and state assessment 858 684 677 630 571 2,849 2,313
Insurance 756 572 555 566 501 2,449 1,774
Legal and accounting 450 227 394 322 225 1,393 1,065
Other professional fees 561 404 490 473 392 1,928 1,655
Operating supplies 455 309 332 343 299 1,439 1,134
Postage 295 212 231 207 216 945 896
Telephone 375 291 291 303 282 1,260 1,074
Other expense 3,410 2,462 2,542 2,254 2,074 10,668 8,855
Total other operating expenses $ 28,162 $ 8,610 $ 7,773 $ 7,807 $ 12,186 $ 52,352 $ 35,649
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(Dollars in thousands) 2013 2013 2013 2013 2012
BALANCE SHEET RATIOS
Total loans to total deposits 83.01% 82.70% 80.27% 76.98% 77.97%
Common equity to assets 12.3% 13.1% 13.0% 12.5% 12.2%
Tangible common equity to tangible assets 8.0% 11.1% 10.9% 10.5% 10.1%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period $ 37,642 $ 40,498 $ 42,302 $ 45,170 $ 47,292
Loans charged off 2,417 5,101 3,361 3,318 3,739
Recoveries of loans previously charged off 358 2,245 807 450 367
Net loans charged off 2,059 2,856 2,554 2,868 3,372
Provision for loan losses 3,439 -- 750 -- 1,250
Balance, end of period $ 39,022 $ 37,642 $ 40,498 $ 42,302 $ 45,170
Discount for credit losses on non-covered loans acquired 174,637 77,413 80,322 80,305 81,717
Net charge-offs on loans not covered by loss share to average non-covered loans 0.22% 0.48% 0.44% 0.50% 0.61%
Allowance for loan losses for non-covered loans to total non-covered loans 0.93% 1.58% 1.73% 1.83% 1.94%
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 4.89% 4.68% 4.99% 5.13% 5.26%
Covered
Balance, beginning of period $ 1,106 $ 952 $ 3,633 $ 5,462 $ 7,148
Loans charged off 287 -- 3,187 1,840 1,688
Recoveries of loans previously charged off 29 154 6 11 2
Net loans charged off 258 (154) 3,181 1,829 1,686
Provision for loan losses before benefit attributable to FDIC loss share agreements 3,945 -- 500 -- --
Benefit attributable to FDIC loss share agreements (3,054) -- (400) -- --
Net provision for loan losses 891 -- 100 -- --
Increase in FDIC indemnification asset 3,054 -- 400 -- --
Balance, end of period $ 4,793 $ 1,106 $ 952 $ 3,633 $ 5,462
Total Allowance for Loan Losses $ 43,815 $ 38,748 $ 41,450 $ 45,935 $ 50,632
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans $ 15,133 $ 17,187 $ 17,798 $ 19,078 $ 21,336
Non-covered loans past due 90 days or more 23,141 11,248 11,514 6,692 5,937
Total non-performing non-covered loans 38,274 28,435 29,312 25,770 27,273
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 29,869 14,158 15,985 18,861 20,393
Other non-performing non-covered assets 281 185 172 285 164
Total other non-performing non-covered assets 30,150 14,343 16,157 19,146 20,557
Total non-performing non-covered assets $ 68,424 $ 42,778 $ 45,469 $ 44,916 $ 47,830
Allowance for loan losses for non-covered loans to non-performing non-covered loans 101.95% 132.38% 138.16% 164.15% 165.62%
Non-performing non-covered loans to total non-covered loans 0.91% 1.20% 1.25% 1.12% 1.17%
Non-performing non-covered assets to total non-covered assets 1.07% 1.15% 1.26% 1.21% 1.30%
Home BancShares, Inc.
Loan Information
(Unaudited)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(Dollars in thousands) 2013 2013 2013 2013 2012
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 1,739,668 $ 1,026,937 $ 1,003,391 $ 1,014,301 $ 1,019,039
Construction/land development 562,667 314,232 281,994 254,673 254,800
Agricultural 81,618 31,906 31,119 34,288 32,513
Residential real estate loans
Residential 1-4 family 913,332 529,732 528,260 531,698 549,269
Multifamily residential 213,232 117,639 120,899 122,998 129,742
Total real estate 3,510,517 2,020,446 1,965,663 1,957,958 1,985,363
Consumer 69,570 30,478 32,671 33,823 37,462
Commercial and industrial 511,421 268,900 287,351 269,463 256,908
Agricultural 37,129 30,612 26,462 16,573 19,825
Other 65,800 28,402 27,095 31,329 31,641
Loans receivable not covered by loss share $ 4,194,437 $ 2,378,838 $ 2,339,242 $ 2,309,146 $ 2,331,199
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 117,164 $ 134,843 $ 143,922 $ 155,345 $ 164,723
Construction/land development 48,388 51,492 56,447 58,384 66,713
Agricultural 1,232 1,253 1,784 2,256 2,282
Residential real estate loans
Residential 1-4 family 98,403 102,673 107,612 120,246 125,625
Multifamily residential 10,378 10,525 10,644 9,443 9,567
Total real estate 275,565 300,786 320,409 345,674 368,910
Consumer 20 17 20 28 39
Commercial and industrial 5,852 6,291 8,193 11,712 14,668
Agricultural -- -- -- -- --
Other 1,079 978 1,180 1,255 1,267
Loans receivable covered by loss share $ 282,516 $ 308,072 $ 329,802 $ 358,669 $ 384,884
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
December 31, 2013 September 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 $ 85,360 $ 51 0.24% $ 40,756 $ 19 0.18%
Federal funds sold 24,180 14 0.23% 4,411 2 0.18%
Investment securities - taxable 944,786 4,760 2.00% 579,867 2,645 1.81%
Investment securities - non-taxable - FTE 270,606 2,539 3.72% 183,341 2,462 5.33%
Loans receivable - FTE 3,994,744 65,486 6.50% 2,668,421 45,121 6.71%
Total interest-earning assets 5,319,676 72,850 5.43% 3,476,796 50,249 5.73%
Non-earning assets 894,828 569,829
Total assets $ 6,214,504 $ 4,046,625
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 2,510,593 $ 1,245 0.20% $ 1,691,077 $ 637 0.15%
Time deposits 1,430,625 2,075 0.58% 832,149 1,173 0.56%
Total interest-bearing deposits 3,941,218 3,320 0.33% 2,523,226 1,810 0.28%
Federal funds purchased 552 1 0.00% 1,511 3 0.00%
Securities sold under agreement to repurchase 135,569 171 0.50% 73,924 87 0.47%
FHLB borrowed funds 357,922 915 1.01% 144,467 910 2.50%
Subordinated debentures 46,393 255 2.18% 3,093 16 2.05%
Total interest-bearing liabilities 4,481,654 4,662 0.41% 2,746,221 2,826 0.41%
Non-interest bearing liabilities
Non-interest bearing deposits 931,918 738,526
Other liabilities 31,312 27,315
Total liabilities 5,444,884 3,512,062
Shareholders' equity 769,620 534,563
Total liabilities and shareholders' equity $ 6,214,504 $ 4,046,625
Net interest spread 5.02% 5.32%
Net interest income and margin - FTE $ 68,188 5.09% $ 47,423 5.41%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Year Ended
December 31, 2013 December 31, 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 $ 102,777 $ 254 0.25% $ 165,862 $ 379 0.23%
Federal funds sold 13,619 29 0.21% 7,175 17 0.24%
Investment securities - taxable 665,495 12,298 1.85% 580,826 11,226 1.93%
Investment securities - non-taxable - FTE 198,198 9,814 4.95% 158,231 10,023 6.33%
Loans receivable - FTE 3,005,470 199,063 6.62% 2,490,901 159,965 6.42%
Total interest-earning assets 3,985,559 221,458 5.56% 3,402,995 181,610 5.34%
Non-earning assets 668,656 575,728
Total assets $ 4,654,215 $ 3,978,723
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 1,939,497 $ 3,437 0.18% $ 1,501,093 $ 3,572 0.24%
Time deposits 1,038,246 6,307 0.61% 1,148,072 11,417 0.99%
Total interest-bearing deposits 2,977,743 9,744 0.33% 2,649,165 14,989 0.57%
Federal funds purchased 520 4 0.00% 273 1 0.00%
Securities sold under agreement to repurchase 88,081 424 0.48% 67,040 407 0.61%
FHLB borrowed funds 191,258 3,841 2.01% 136,312 4,364 3.20%
Subordinated debentures 19,938 518 2.60% 39,852 1,774 4.45%
Total interest-bearing liabilities 3,277,540 14,531 0.44% 2,892,642 21,535 0.74%
Non-interest bearing liabilities
Non-interest bearing deposits 761,540 569,017
Other liabilities 25,071 22,946
Total liabilities 4,064,151 3,484,605
Shareholders' equity 590,064 494,118
Total liabilities and shareholders' equity $ 4,654,215 $ 3,978,723
Net interest spread 5.12% 4.60%
Net interest income and margin - FTE $ 206,927 5.19% $ 160,075 4.70%

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

Source:Home BancShares, Inc.