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Home BancShares, Inc. Announces Record Quarterly Profit of $27.3 Million

Home BancShares logo

CONWAY, Ark., April 17, 2014 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced a record quarterly profit of $27.3 million, or $0.42 diluted earnings per share for the first quarter of 2014 compared to $17.5 million or $0.31 diluted earnings per share for the same quarter in 2013. The Company increased its first quarter earnings by $9.8 million or 55.8% for the three months ended March 31, 2014 compared to the same period of the previous year. Excluding the $849,000 of merger expenses associated with the recently completed acquisition of Liberty Bancshares, Inc. (Liberty), diluted earnings per share for the first quarter of 2014 was $0.43 per share.

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 first quarter of 2014 was $0.43 compared to $0.32 diluted earnings per share excluding intangible amortization (split adjusted) for the same period in 2013.

"The Company has achieved yet another historically record quarter during the first quarter of 2014," said John Allison, Chairman. "During the first quarter, the Company exhibited a notable diluted earnings per share metric of $0.43 per share. Our team continues to be dedicated on working toward recognizing the anticipated cost savings as quickly as possible from last quarter's acquisition of Liberty. I am looking forward to watching our team succeed in this process and pass along the results to our deserving shareholders."

Randy Sims, Chief Executive Officer, added, "We saw our diluted earnings per share and net interest margin improve 11 cents and 33 basis points during the first quarter of 2014 when compared to the prior year first quarter. Our core efficiency ratio also made a significant improvement to 41.39% for the quarter just ended when compared to the 46.39% and 45.22% from the first and fourth quarters of 2013, respectively. Another important item of note for the first quarter of 2014 is a 1.67% return on average assets excluding merger expenses. This ratio demonstrates we are making the necessary earnings improvements to get the acquired Liberty franchise up to our standards. I, for one, am pleased with the continued achievements the Company has realized during the first quarter of 2014."

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 first quarter 2014 impairment testing, four 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 $11.4 million as an adjustment to yield over the weighted average life of the loans ($2.0 million was recognized during the first quarter of 2014). 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 $8.3 million ($2.1 million was recognized for the first quarter of 2014) and increase our FDIC true-up liability by $1.1 million ($71,000 was recognized for the first quarter of 2014). The $8.3 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 $1.1 million will be expensed over the remaining true-up measurement date as other non-interest expense.

Net interest income for the first quarter of 2014 increased 73.6% to $77.0 million from $44.3 million during the first quarter of 2013. For the first quarter of 2014, the effective yield on non-covered loans and covered loans was 6.26% and 16.02%, respectively. Net interest margin, on a fully taxable equivalent basis, was 5.48% for the quarter just ended compared to 5.15% in the first quarter of 2013, an increase of 33 basis points. The pools which have been determined to have material projected credit improvement as a result of the quarterly impairment testing and the acquisition of Liberty have significantly changed the mix and metrics on the net interest margin since December 31, 2012. Although there have been many changes since 2012, the Company continues to remain focused on expanding its net interest margin through opportunities such as improved pricing on interest-bearing deposits.

The Company experienced a $6.9 million increase in the provision for loan losses for non-covered loans during the first quarter of 2014 versus 2013. This expected increase is not an indication of a decline in asset quality but primarily a reflection of the migration of the Liberty loans from purchased loan accounting treatment to originated loan accounting treatment. Based upon current accounting guidance the allowance for loan losses is not carried over in an acquisition. As a result virtually none of the Liberty footprint loans had any allocation of the allowance for loan losses at year end. This is the result of all loans acquired on October 24, 2013 from Liberty being recorded at fair value in accordance with the fair value methodology prescribed in ASC Topic 820. However, as the acquired Liberty loans payoff and the Liberty footprint originates loan productions, it is necessary to establish an allowance which represents an amount that, in management's judgment, will be adequate to absorb credit losses.

The Company reported $12.2 million of non-interest income for the first quarter of 2014, compared to $9.0 million for the first quarter of 2013. The most important components of the first quarter non-interest income were $5.9 million from service charges on deposits accounts, $5.7 million from other service charges and fees, $1.5 million from mortgage lending income, $1.4 million from insurance commissions, $761,000 from other income, $539,000 from gain on sale of OREO and $436,000 from trust fees offset by the $4.7 million of net amortization on the FDIC indemnification asset.

Non-interest expense for the first quarter of 2014 was $39.4 million compared to $25.9 million for the first quarter of 2013. These increases are primarily associated with the acquisition of Liberty during the fourth quarter of 2013. For the first quarter of 2014, our core efficiency ratio was 41.39% which is improved from the 46.39% reported for first quarter of 2013. As a result of the integration of Liberty during the fourth quarter of 2013, the Company anticipates it will be able to continue achieving cost savings during 2014.

Financial Condition

Total non-covered loans were $4.13 billion at March 31, 2014 compared to $4.19 billion at December 31, 2013. Total covered loans were $270.6 million at March 31, 2014 compared to $282.5 million at December 31, 2013. Total deposits were $5.34 billion at March 31, 2014 compared to $5.39 billion at December 31, 2013. Total assets were $6.78 billion at March 31, 2014 compared to $6.81 billion at December 31, 2013.

Non-performing non-covered loans were $42.7 million as of March 31, 2014, of which $20.4 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 1.03% as of March 31, 2014 compared to 0.91% as of December 31, 2013. Non-performing non-covered assets were $66.2 million as of March 31, 2014, of which $24.7 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 1.03% as of March 31, 2014 compared to 1.07% as of December 31, 2013.

The Company's allowance for loan losses for non-covered loans was $44.0 million at March 31, 2014, or 1.07% of total non-covered loans, compared to $39.0 million, or 0.93% of total non-covered loans, at December 31, 2013. As of March 31, 2014 and December 31, 2013, 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 4.86% and 4.89%, respectively. As of March 31, 2014 and December 31, 2013, the Company's allowance for loan losses for non-covered loans was 103% and 102% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $868.9 million at March 31, 2014 compared to $841.0 million at December 31, 2013, an increase of $27.9 million. Book value per common share was $13.34 at March 31, 2014 compared to $12.92 at December 31, 2013. Tangible book value per common share was $8.38 at March 31, 2014 compared to $7.94 December 31, 2013.

Branches

During the first quarter of 2014, the Company closed one branch in Panacea, Florida. The Company currently has no plans for additional de novo branch locations. In an effort to achieve efficiencies primarily from the recent acquisitions, the Company plans to close or merge four Arkansas and two Florida locations during the second quarter of 2014. The Company currently has 88 branches in Arkansas, 52 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, April 17, 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: 10042673, which will be available until April 25, 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, 2013 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)
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(In thousands) 2014 2013 2013 2013 2013
ASSETS
Cash and due from banks $ 124,662 $ 104,005 $ 77,261 $ 75,148 $ 95,604
Interest-bearing deposits with other banks 89,897 61,529 35,080 97,576 206,753
Cash and cash equivalents 214,559 165,534 112,341 172,724 302,357
Federal funds sold 22,925 4,275 10,700 2,475 2,850
Investment securities - available-for-sale 1,175,827 1,175,484 839,560 736,406 724,929
Investment securities - held-to-maturity 132,363 114,621 9,528 -- --
Loans receivable not covered by loss share 4,126,564 4,194,437 2,378,838 2,339,242 2,309,146
Loans receivable covered by FDIC loss share 270,641 282,516 308,072 329,802 358,669
Allowance for loan losses (48,991) (43,815) (38,748) (41,450) (45,935)
Loans receivable, net 4,348,214 4,433,138 2,648,162 2,627,594 2,621,880
Bank premises and equipment, net 196,392 197,224 119,637 119,737 117,534
Foreclosed assets held for sale not covered by loss share 23,484 29,869 14,158 15,985 18,861
Foreclosed assets held for sale covered by FDIC loss share 20,201 20,999 24,320 27,073 29,928
FDIC indemnification asset 73,348 89,611 101,192 116,071 126,275
Cash value of life insurance 63,787 63,501 59,602 59,401 59,185
Accrued interest receivable 21,865 22,944 14,275 14,424 14,367
Deferred tax asset, net 82,886 89,412 46,045 46,655 40,907
Goodwill 301,736 301,736 85,681 85,681 85,681
Core deposit and other intangibles 21,131 22,298 9,655 10,457 11,259
Other assets 82,058 81,215 66,450 56,654 69,494
Total assets $ 6,780,776 $ 6,811,861 $ 4,161,306 $ 4,091,337 $ 4,225,507
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing $ 1,057,148 $ 991,161 $ 757,328 $ 733,374 $ 717,830
Savings and interest-bearing transaction accounts 2,827,787 2,792,423 1,683,010 1,735,280 1,810,957
Time deposits 1,453,575 1,609,462 808,480 856,581 936,649
Total deposits 5,338,510 5,393,046 3,248,818 3,325,235 3,465,436
Federal funds purchased -- -- -- -- --
Securities sold under agreements to repurchase 137,524 160,984 71,307 73,461 77,194
FHLB borrowed funds 354,935 350,661 270,232 130,251 130,369
Accrued interest payable and other liabilities 20,113 5,389 22,714 25,787 21,020
Subordinated debentures 60,826 60,826 3,093 3,093 3,093
Total liabilities 5,911,908 5,970,906 3,616,164 3,557,827 3,697,112
Stockholders' equity
Common stock 651 651 563 562 281
Capital surplus 708,868 708,058 417,627 416,795 416,741
Retained earnings 158,838 136,386 128,316 114,172 100,730
Accumulated other comprehensive income (loss) 511 (4,140) (1,364) 1,981 10,643
Total stockholders' equity 868,868 840,955 545,142 533,510 528,395
Total liabilities and stockholders' equity $ 6,780,776 $ 6,811,861 $ 4,161,306 $ 4,091,337 $ 4,225,507
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended Three Months Ended
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Mar. 31, Mar. 31,
(In thousands) 2014 2013 2013 2013 2013 2014 2013
Interest income
Loans $ 75,013 $ 65,338 $ 45,003 $ 44,036 $ 44,159 $ 75,013 $ 44,159
Investment securities
Taxable 4,470 4,760 2,645 2,490 2,403 4,470 2,403
Tax-exempt 2,317 1,554 1,507 1,467 1,481 2,317 1,481
Deposits - other banks 24 51 19 86 98 24 98
Federal funds sold 16 14 2 6 7 16 7
Total interest income 81,840 71,717 49,176 48,085 48,148 81,840 48,148
Interest expense
Interest on deposits 3,384 3,320 1,810 2,129 2,485 3,384 2,485
Federal funds purchased -- 1 3 -- -- -- --
FHLB borrowed funds 946 915 910 1,012 1,004 946 1,004
Securities sold under agreements to repurchase 182 171 87 86 80 182 80
Subordinated debentures 328 255 16 17 230 328 230
Total interest expense 4,840 4,662 2,826 3,244 3,799 4,840 3,799
Net interest income 77,000 67,055 46,350 44,841 44,349 77,000 44,349
Provision for loan losses 6,938 4,330 -- 850 -- 6,938 --
Net interest income after provision for loan losses 70,062 62,725 46,350 43,991 44,349 70,062 44,349
Non-interest income
Service charges on deposit accounts 5,911 6,001 4,072 4,088 3,709 5,911 3,709
Other service charges and fees 5,686 5,146 3,671 3,479 3,437 5,686 3,437
Trust fees 436 284 15 17 19 436 19
Mortgage lending income 1,513 1,470 1,527 1,619 1,372 1,513 1,372
Insurance commissions 1,416 778 519 444 679 1,416 679
Income from title services 50 122 156 136 109 50 109
Increase in cash value of life insurance 288 235 203 218 180 288 180
Dividends from FHLB, FRB, Bankers' bank & other 316 273 179 401 175 316 175
Gain on sale of SBA loans -- -- 79 -- 56 -- 56
Gain (loss) on sale of premises & equipment, net 9 (315) 303 394 15 9 15
Gain (loss) on OREO, net 539 347 777 441 86 539 86
Gain (loss) on securities, net -- -- -- 111 -- -- --
FDIC indemnification accretion/(amortization), net (4,744) (2,949) (3,177) (2,283) (1,992) (4,744) (1,992)
Other income 761 825 994 740 1,180 761 1,180
Total non-interest income 12,181 12,217 9,318 9,805 9,025 12,181 9,025
Non-interest expense
Salaries and employee benefits 18,933 19,504 12,981 12,957 12,952 18,933 12,952
Occupancy and equipment 6,226 5,670 4,010 3,894 3,594 6,226 3,594
Data processing expense 1,793 1,538 1,114 1,231 1,510 1,793 1,510
Other operating expenses 12,405 28,162 8,610 7,773 7,807 12,405 7,807
Total non-interest expense 39,357 54,874 26,715 25,855 25,863 39,357 25,863
Income before income taxes 42,886 20,068 28,953 27,941 27,511 42,886 27,511
Income tax expense 15,549 7,118 10,590 10,282 9,963 15,549 9,963
Net income $ 27,337 $ 12,950 $ 18,363 $ 17,659 $ 17,548 $ 27,337 $ 17,548
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter Ended Three Months Ended
(Dollars and shares in thousands, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Mar. 31, Mar. 31,
except per share data) 2014 2013 2013 2013 2013 2014 2013
PER SHARE DATA
Diluted earnings per common share $ 0.42 $ 0.19 $ 0.33 $ 0.31 $ 0.31 $ 0.42 $ 0.31
Diluted earnings per common share excluding intangible amortization 0.43 0.21 0.33 0.32 0.32 0.43 0.32
Basic earnings per common share 0.42 0.19 0.33 0.32 0.31 0.42 0.31
Dividends per share - common 0.075 0.075 0.075 0.075 0.065 0.075 0.065
Book value per common share 13.34 12.92 9.69 9.49 9.40 13.34 9.40
Tangible book value per common share 8.38 7.94 7.99 7.78 7.67 8.38 7.67
STOCK INFORMATION
Average common shares outstanding 65,123 62,865 56,256 56,234 56,222 65,123 56,222
Average diluted shares outstanding 65,511 63,234 56,620 56,577 56,535 65,511 56,535
End of period common shares outstanding 65,135 65,082 56,278 56,243 56,229 65,135 56,229
ANNUALIZED PERFORMANCE METRICS
Return on average assets 1.64% 0.83% 1.80% 1.71% 1.70% 1.64% 1.70%
Return on average assets excluding intangible amortization 1.77% 0.91% 1.89% 1.80% 1.79% 1.77% 1.79%
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) 3.26% 2.86% 3.09% 2.93% 2.77% 3.26% 2.77%
Return on average common equity 13.00% 6.68% 13.63% 13.27% 13.68% 13.00% 13.68%
Return on average tangible common equity excluding intangible amortization 21.48% 10.83% 17.04% 16.65% 17.29% 21.48% 17.29%
Efficiency ratio 42.07% 66.73% 45.67% 44.98% 46.03% 42.07% 46.03%
Core efficiency ratio 41.39% 45.22% 44.76% 45.76% 46.39% 41.39% 46.39%
Net interest margin - FTE 5.48% 5.09% 5.41% 5.18% 5.15% 5.48% 5.15%
Fully taxable equivalent adjustment $ 1,591 $ 1,133 $ 1,073 $ 1,051 $ 1,075 $ 1,591 $ 1,075
Total revenue 94,021 83,934 58,494 57,890 57,173 94,021 57,173
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to common shareholders $ 27,337 $ 12,950 $ 18,363 $ 17,659 $ 17,548 $ 27,337 $ 17,548
Intangible amortization after-tax 709 740 487 488 487 709 487
Earnings excluding intangible amortization $ 28,046 $ 13,690 $ 18,850 $ 18,147 $ 18,035 $ 28,046 $ 18,035
GAAP diluted earnings per share $ 0.42 $ 0.19 $ 0.33 $ 0.31 $ 0.31 $ 0.42 $ 0.31
Intangible amortization after-tax 0.01 0.02 -- 0.01 0.01 0.01 0.01
Diluted earnings per share excluding intangible amortization $ 0.43 $ 0.21 $ 0.33 $ 0.32 $ 0.32 $ 0.43 $ 0.32
OTHER OPERATING EXPENSES
Advertising $ 522 $ 653 $ 363 $ 120 $ 693 $ 522 $ 693
Merger and acquisition expenses 849 17,315 1,034 1 28 849 28
Amortization of intangibles 1,167 1,218 802 802 802 1,167 802
Electronic banking expense 1,338 1,458 926 960 863 1,338 863
Directors' fees 227 179 188 210 190 227 190
Due from bank service charges 199 179 136 168 133 199 133
FDIC and state assessment 1,114 858 684 677 630 1,114 630
Insurance 614 756 572 555 566 614 566
Legal and accounting 417 450 227 394 322 417 322
Other professional fees 507 561 404 490 473 507 473
Operating supplies 472 455 309 332 343 472 343
Postage 352 295 212 231 207 352 207
Telephone 454 375 291 291 303 454 303
Other expense 4,173 3,410 2,462 2,542 2,254 4,173 2,254
Total other operating expenses $ 12,405 $ 28,162 $ 8,610 $ 7,773 $ 7,807 $ 12,405 $ 7,807
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(Dollars in thousands) 2014 2013 2013 2013 2013
BALANCE SHEET RATIOS
Total loans to total deposits 82.37% 83.01% 82.70% 80.27% 76.98%
Common equity to assets 12.8% 12.3% 13.1% 13.0% 12.5%
Tangible common equity to tangible assets 8.5% 8.0% 11.1% 10.9% 10.5%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period $ 39,022 $ 37,642 $ 40,498 $ 42,302 $ 45,170
Loans charged off 2,424 2,417 5,101 3,361 3,318
Recoveries of loans previously charged off 488 358 2,245 807 450
Net loans charged off 1,936 2,059 2,856 2,554 2,868
Provision for loan losses 6,938 3,439 -- 750 --
Balance, end of period $ 44,024 $ 39,022 $ 37,642 $ 40,498 $ 42,302
Discount for credit losses on non-covered loans acquired 164,324 174,637 77,413 80,322 80,305
Net charge-offs on loans not covered by loss share to average non-covered loans 0.19% 0.22% 0.48% 0.44% 0.50%
Allowance for loan losses for non-covered loans to total non-covered loans 1.07% 0.93% 1.58% 1.73% 1.83%
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
4.86% 4.89% 4.68% 4.99% 5.13%
Covered
Balance, beginning of period $ 4,793 $ 1,106 $ 952 $ 3,633 $ 5,462
Loans charged off -- 287 -- 3,187 1,840
Recoveries of loans previously charged off 174 29 154 6 11
Net loans charged off/(recovered) (174) 258 (154) 3,181 1,829
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 indemnificaton asset -- 3,054 -- 400 --
Balance, end of period $ 4,967 $ 4,793 $ 1,106 $ 952 $ 3,633
Total allowance for loan losses $ 48,991 $ 43,815 $ 38,748 $ 41,450 $ 45,935
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans $ 20,697 $ 15,133 $ 17,187 $ 17,798 $ 19,078
Non-covered loans past due 90 days or more 21,981 23,141 11,248 11,514 6,692
Total non-performing non-covered loans 42,678 38,274 28,435 29,312 25,770
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 23,484 29,869 14,158 15,985 18,861
Other non-performing non-covered assets 47 281 185 172 285
Total other non-performing non-covered assets 23,531 30,150 14,343 16,157 19,146
Total non-performing non-covered assets $ 66,209 $ 68,424 $ 42,778 $ 45,469 $ 44,916
Allowance for loan losses for non-covered loans to non-performing non-covered loans 103.15% 101.95% 132.38% 138.16% 164.15%
Non-performing non-covered loans to total non-covered loans 1.03% 0.91% 1.20% 1.25% 1.12%
Non-performing non-covered assets to total non-covered assets 1.03% 1.07% 1.15% 1.26% 1.21%
Home BancShares, Inc.
Loan Information
(Unaudited)
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(Dollars in thousands) 2014 2013 2013 2013 2013
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 1,722,910 $ 1,739,668 $ 1,026,937 $ 1,003,391 $ 1,014,301
Construction/land development 566,205 562,667 314,232 281,994 254,673
Agricultural 74,775 81,618 31,906 31,119 34,288
Residential real estate loans
Residential 1-4 family 890,981 913,332 529,732 528,260 531,698
Multifamily residential 206,348 213,232 117,639 120,899 122,998
Total real estate 3,461,219 3,510,517 2,020,446 1,965,663 1,957,958
Consumer 60,735 69,570 30,478 32,671 33,823
Commercial and industrial 491,525 511,421 268,900 287,351 269,463
Agricultural 44,017 37,129 30,612 26,462 16,573
Other 69,068 65,800 28,402 27,095 31,329
Loans receivable not covered by loss share $ 4,126,564 $ 4,194,437 $ 2,378,838 $ 2,339,242 $ 2,309,146
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 113,593 $ 117,164 $ 134,843 $ 143,922 $ 155,345
Construction/land development 45,381 48,388 51,492 56,447 58,384
Agricultural 1,184 1,232 1,253 1,784 2,256
Residential real estate loans
Residential 1-4 family 92,918 98,403 102,673 107,612 120,246
Multifamily residential 10,043 10,378 10,525 10,644 9,443
Total real estate 263,119 275,565 300,786 320,409 345,674
Consumer 16 20 17 20 28
Commercial and industrial 6,440 5,852 6,291 8,193 11,712
Agricultural -- -- -- -- --
Other 1,066 1,079 978 1,180 1,255
Loans receivable covered by loss share $ 270,641 $ 282,516 $ 308,072 $ 329,802 $ 358,669
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
March 31, 2014 December 31, 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 $ 63,018 $ 24 0.15% $ 85,360 $ 51 0.24%
Federal funds sold 31,482 16 0.21% 24,180 14 0.23%
Investment securities - taxable 1,005,313 4,470 1.80% 944,786 4,760 2.00%
Investment securities - non-taxable - FTE 286,328 3,789 5.37% 270,606 2,539 3.72%
Loans receivable - FTE 4,427,994 75,132 6.88% 3,994,744 65,486 6.50%
Total interest-earning assets 5,814,135 83,431 5.82% 5,319,676 72,850 5.43%
Non-earning assets 952,470 894,828
Total assets $ 6,766,605 $ 6,214,504
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 2,785,216 $ 1,279 0.19% $ 2,510,593 $ 1,245 0.20%
Time deposits 1,528,079 2,105 0.56% 1,430,625 2,075 0.58%
Total interest-bearing deposits 4,313,295 3,384 0.32% 3,941,218 3,320 0.33%
Federal funds purchased 508 -- 0.00% 552 1 0.72%
Securities sold under agreement to repurchase 149,352 182 0.49% 135,569 171 0.50%
FHLB borrowed funds 377,326 946 1.02% 357,922 915 1.01%
Subordinated debentures 60,826 328 2.19% 46,393 255 2.18%
Total interest-bearing liabilities 4,901,307 4,840 0.40% 4,481,654 4,662 0.41%
Non-interest bearing liabilities
Non-interest bearing deposits 1,003,495 931,918
Other liabilities 8,825 31,312
Total liabilities 5,913,627 5,444,884
Shareholders' equity 852,978 769,620
Total liabilities and shareholders' equity $ 6,766,605 $ 6,214,504
Net interest spread 5.42% 5.02%
Net interest income and margin - FTE $ 78,591 5.48% $ 68,188 5.09%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
March 31, 2014 March 31, 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 $ 63,018 $ 24 0.15% $ 148,744 $ 98 0.27%
Federal funds sold 31,482 16 0.21% 15,724 7 0.18%
Investment securities - taxable 1,005,313 4,470 1.80% 561,056 2,403 1.74%
Investment securities - non-taxable - FTE 286,328 3,789 5.37% 165,411 2,419 5.93%
Loans receivable - FTE 4,427,994 75,132 6.88% 2,684,376 44,296 6.69%
Total interest-earning assets 5,814,135 83,431 5.82% 3,575,311 49,223 5.58%
Non-earning assets 952,470 617,582
Total assets $ 6,766,605 $ 4,192,893
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 2,785,216 $ 1,279 0.19% $ 1,771,631 $ 814 0.19%
Time deposits 1,528,079 2,105 0.56% 986,787 1,671 0.69%
Total interest-bearing deposits 4,313,295 3,384 0.32% 2,758,418 2,485 0.37%
Federal funds purchased 508 -- 0.00% -- -- 0.00%
Securities sold under agreement to repurchase 149,352 182 0.49% 69,664 80 0.47%
FHLB borrowed funds 377,326 946 1.02% 130,376 1,004 3.12%
Subordinated debentures 60,826 328 2.19% 27,149 230 3.44%
Total interest-bearing liabilities 4,901,307 4,840 0.40% 2,985,607 3,799 0.52%
Non-interest bearing liabilities
Non-interest bearing deposits 1,003,495 668,222
Other liabilities 8,825 18,769
Total liabilities 5,913,627 3,672,598
Shareholders' equity 852,978 520,295
Total liabilities and shareholders' equity $ 6,766,605 $ 4,192,893
Net interest spread 5.42% 5.06%
Net interest income and margin - FTE $ 78,591 5.48% $ 45,424 5.15%

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

Source:Home BancShares, Inc.