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Home BancShares, Inc. Announces Third Quarter Earnings of $27.4 Million and Third Quarter Organic Loan Growth of $208.3 Million

CONWAY, Ark., Oct. 16, 2014 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced a quarterly profit of $27.4 million, or $0.41 diluted earnings per share for the third quarter of 2014 compared to $18.4 million or $0.33 diluted earnings per share for the same quarter in 2013. The Company increased its third quarter earnings by $9.0 million or 49.1% for the three months ended September 30, 2014 compared to the same period of the previous year. Excluding the $3.8 million of merger expenses associated with the recently completed acquisition of Florida Traditions Bank (Traditions), diluted earnings per share for the third quarter of 2014 was $0.45 per share.

On July 17, 2014, the Company completed its acquisition of Traditions. As of acquisition date, Traditions had $297.6 million in total assets, $241.6 million in loans after $8.5 million of loan discounts, and $267.3 million in deposits. From June 30, 2014 to September 30, 2014, the Company had $449.9 million growth in non-covered loans. Excluding the loans acquired from Traditions, the Company produced $208.3 million of organic non-covered loan growth.

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 third quarter of 2014 was $0.42 compared to $0.33 diluted earnings per share excluding intangible amortization for the same period in 2013.

"I am eager to report the Company has achieved $208.3 million in organic non-covered loan growth since the second quarter 2014," said John Allison, Chairman. "At this point, we know there is still an ongoing need for organic loan growth and are diligently pursuing the opportunities set before us. Additionally, on September 26, 2014, we completed the systems conversion of Traditions and now can speed up the process of improving the financial metrics to maximize returns to our shareholders."

Randy Sims, Chief Executive Officer, added, "We are pleased to report our diluted earnings per share improved eight cents, during the quarter just ended when compared to the third quarter of 2013. Excluding merger expenses, we have again, for the fourteenth consecutive quarter, reported the most profitable quarter in the Company's history with a diluted earnings per share excluding merger expenses of $0.45 per share. We were also happy to be reporting a 41.88% core efficiency ratio and 1.69% return on average assets excluding merger expenses for the third 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 third quarter 2014 impairment testing, there were non-loss sharing pools evaluated by the Company which were determined to have a material projected credit improvement. As a result of this improvement, the Company will recognize approximately $4.7 million as an adjustment to yield over the weighted average life of the loans ($1.1 million was recognized during the third quarter of 2014).

Net interest income for the third quarter of 2014 increased 69.6% to $78.6 million from $46.4 million during the third quarter of 2013. For the third quarter of 2014, the effective yield on non-covered loans and covered loans was 5.84% and 17.23%, respectively. Net interest margin, on a fully taxable equivalent basis, was 5.26% for the quarter just ended. 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 and Traditions 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 $4.2 million increase in the provision for loan losses for non-covered loans during the third 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 (and to a lesser extent Traditions 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 or renew and the Liberty footprint originates new loan production, 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 $10.8 million of non-interest income for the third quarter of 2014, compared to $9.3 million for the third quarter of 2013. The most important components of the third quarter non-interest income were $6.3 million from service charges on deposits accounts, $6.0 million from other service charges and fees, $1.9 million from mortgage lending income, $984,000 from insurance commissions, $888,000 from other income, $529,000 from gain on sale of OREO, $306,000 from trust fees, and $183,000 from gain on sale of SBA loans offset by the $6.9 million of net amortization on the FDIC indemnification asset and $35,000 loss on sale of premises and equipment.

The Company is currently in negotiations with the FDIC regarding the remaining loss share agreements associated with the Key West Bank loan portfolio acquired on March 26, 2010. At this point, the Company has not reached an agreement with the FDIC to buyout the Key West Bank loss share. As a result, during the third quarter, the Company began accreting the credit improvement ($186,000) and amortized the indemnification asset ($1.1 million) and recorded a true-up expense ($41,000) similar to the other impairment tests we have completed in the past. Therefore, it created a negative third quarter 2014 financial impact to earnings for the Company of approximately $1.0 million on a pre-tax basis.

Non-interest expense for the third quarter of 2014 was $42.8 million compared to $26.7 million for the third quarter of 2013. These increases are primarily associated with the acquisitions of Liberty during the fourth quarter of 2013 and Traditions during the third quarter of 2014. For the third quarter of 2014, our core efficiency ratio was 41.88% which is improved from the 44.76% reported for third quarter of 2013.

Financial Condition

Total non-covered loans were $4.58 billion at September 30, 2014 compared to $4.19 billion at December 31, 2013. Total covered loans were $251.0 million at September 30, 2014 compared to $282.5 million at December 31, 2013. Total deposits were $5.28 billion at September 30, 2014 compared to $5.39 billion at December 31, 2013. Total assets were $7.20 billion at September 30, 2014 compared to $6.81 billion at December 31, 2013.

Non-performing non-covered loans were $41.0 million as of September 30, 2014, of which $16.3 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 0.90% as of September 30, 2014 compared to 0.91% as of December 31, 2013. Non-performing non-covered assets were $60.4 million as of September 30, 2014, of which $20.7 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 0.88% as of September 30, 2014 compared to 1.07% as of December 31, 2013.

The Company's allowance for loan losses for non-covered loans was $50.7 million at September 30, 2014, or 1.11% of total non-covered loans, compared to $39.0 million, or 0.93% of total non-covered loans, at December 31, 2013. As of September 30, 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 4.20% and 4.89%, respectively. As of September 30, 2014 and December 31, 2013, the Company's allowance for loan losses for non-covered loans was 124% and 102% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $958.7 million at September 30, 2014 compared to $841.0 million at December 31, 2013, an increase of $117.7 million. Book value per common share was $14.42 at September 30, 2014 compared to $12.92 at December 31, 2013. Tangible book value per common share was $9.39 at September 30, 2014 compared to $7.94 December 31, 2013.

Branches

During the third quarter of 2014, the Company opened one de novo branch in Naples, Florida and acquired eight branches through the acquisition of Traditions. In an effort to achieve efficiencies primarily from the recent acquisitions, the Company closed or merged two Arkansas locations during the third quarter of 2014. The Company has 82 branches in Arkansas, 59 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 16, 2014. Interested parties can listen to this call by calling 1-877-508-9586 and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-344-7529, Passcode: 10052237, which will be available until October 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, 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)
(In thousands) Sep. 30,
2014
Jun. 30,
2014
Mar. 31,
2014
Dec. 31,
2013
Sep. 30,
2013
ASSETS
Cash and due from banks $ 109,067 $ 122,167 $ 124,662 $ 104,005 $ 77,261
Interest-bearing deposits with other banks 28,416 21,385 89,897 61,529 35,080
Cash and cash equivalents 137,483 143,552 214,559 165,534 112,341
Federal funds sold 44,275 850 22,925 4,275 10,700
Investment securities - available-for-sale 1,067,617 1,122,803 1,175,827 1,175,484 839,560
Investment securities - held-to-maturity 296,036 205,566 132,363 114,621 9,528
Loans receivable not covered by loss share 4,583,015 4,133,109 4,126,564 4,194,437 2,378,838
Loans receivable covered by FDIC loss share 250,970 263,157 270,641 282,516 308,072
Allowance for loan losses (52,844) (51,173) (48,991) (43,815) (38,748)
Loans receivable, net 4,781,141 4,345,093 4,348,214 4,433,138 2,648,162
Bank premises and equipment, net 211,726 196,194 196,392 197,224 119,637
Foreclosed assets held for sale not covered by loss share 19,367 20,960 23,484 29,869 14,158
Foreclosed assets held for sale covered by FDIC loss share 13,513 17,196 20,201 20,999 24,320
FDIC indemnification asset 42,104 56,626 73,348 89,611 101,192
Cash value of life insurance 70,913 64,066 63,787 63,501 59,602
Accrued interest receivable 23,366 20,847 21,865 22,944 14,275
Deferred tax asset, net 68,070 73,151 82,886 89,412 46,045
Goodwill 313,320 301,736 301,736 301,736 85,681
Core deposit and other intangibles 21,004 19,984 21,131 22,298 9,655
Other assets 86,436 77,516 82,058 81,215 66,450
Total assets $ 7,196,371 $ 6,666,140 $ 6,780,776 $ 6,811,861 $ 4,161,306
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing $ 1,170,441 $ 1,129,073 $ 1,057,148 $ 991,161 $ 757,328
Savings and interest-bearing transaction accounts 2,830,829 2,756,060 2,827,787 2,792,423 1,683,010
Time deposits 1,276,001 1,306,876 1,453,575 1,609,462 808,480
Total deposits 5,277,271 5,192,009 5,338,510 5,393,046 3,248,818
Federal funds purchased -- -- -- -- --
Securities sold under agreements to repurchase 160,895 144,602 137,524 160,984 71,307
FHLB borrowed funds 713,553 349,110 354,935 350,661 270,232
Accrued interest payable and other liabilities 25,145 22,358 20,113 5,389 22,714
Subordinated debentures 60,826 60,826 60,826 60,826 3,093
Total liabilities 6,237,690 5,768,905 5,911,908 5,970,906 3,616,164
Stockholders' equity
Common stock 665 651 651 651 563
Capital surplus 749,573 709,516 708,868 708,058 417,627
Retained earnings 203,107 182,382 158,838 136,386 128,316
Accumulated other comprehensive income (loss) 5,336 4,686 511 (4,140) (1,364)
Total stockholders' equity 958,681 897,235 868,868 840,955 545,142
Total liabilities and stockholders' equity $ 7,196,371 $ 6,666,140 $ 6,780,776 $ 6,811,861 $ 4,161,306
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended Nine Months Ended
(In thousands) Sep. 30,
2014
Jun. 30,
2014
Mar. 31,
2014
Dec. 31,
2013
Sep. 30,
2013
Sep. 30,
2014
Sep. 30,
2013
Interest income
Loans $ 75,917 $ 75,404 $ 75,013 $ 65,338 $ 45,003 $ 226,334 $ 133,198
Investment securities
Taxable 4,905 4,762 4,470 4,760 2,645 14,137 7,538
Tax-exempt 2,552 2,379 2,317 1,554 1,507 7,248 4,455
Deposits - other banks 20 29 24 51 19 73 203
Federal funds sold 7 12 16 14 2 35 15
Total interest income 83,401 82,586 81,840 71,717 49,176 247,827 145,409
Interest expense
Interest on deposits 3,243 3,095 3,384 3,320 1,810 9,722 6,424
Federal funds purchased 2 -- -- 1 3 2 3
FHLB borrowed funds 1,035 952 946 915 910 2,933 2,926
Securities sold under agreements to repurchase 186 168 182 171 87 536 253
Subordinated debentures 330 328 328 255 16 986 263
Total interest expense 4,796 4,543 4,840 4,662 2,826 14,179 9,869
Net interest income 78,605 78,043 77,000 67,055 46,350 233,648 135,540
Provision for loan losses 4,241 6,115 6,938 4,330 -- 17,294 850
Net interest income after provision for loan losses 74,364 71,928 70,062 62,725 46,350 216,354 134,690
Non-interest income
Service charges on deposit accounts 6,275 6,193 5,911 6,001 4,072 18,379 11,869
Other service charges and fees 5,977 5,978 5,686 5,146 3,671 17,641 10,587
Trust fees 306 323 436 284 15 1,065 51
Mortgage lending income 1,901 1,801 1,513 1,470 1,527 5,215 4,518
Insurance commissions 984 934 1,416 778 519 3,334 1,642
Income from title services 59 53 50 122 156 162 401
Increase in cash value of life insurance 322 281 288 235 203 891 601
Dividends from FHLB, FRB, Bankers' bank & other 389 501 316 273 179 1,206 755
Gain on sale of SBA loans 183 -- -- -- 79 183 135
Gain (loss) on sale of premises & equipment, net (35) 445 9 (315) 303 419 712
Gain (loss) on OREO, net 529 859 539 347 777 1,927 1,304
Gain (loss) on securities, net -- -- -- -- -- -- 111
FDIC indemnification accretion/(amortization), net (6,947) (6,622) (4,744) (2,949) (3,177) (18,313) (7,452)
Other income 888 793 761 825 994 2,442 2,914
Total non-interest income 10,831 11,539 12,181 12,217 9,318 34,551 28,148
Non-interest expense
Salaries and employee benefits 19,368 18,813 18,933 19,504 12,981 57,114 38,890
Occupancy and equipment 6,234 6,251 6,226 5,670 4,010 18,711 11,498
Data processing expense 1,801 1,793 1,793 1,538 1,114 5,387 3,855
Other operating expenses 15,414 11,763 12,405 28,162 8,610 39,582 24,190
Total non-interest expense 42,817 38,620 39,357 54,874 26,715 120,794 78,433
Income before income taxes 42,378 44,847 42,886 20,068 28,953 130,111 84,405
Income tax expense 15,007 16,418 15,549 7,118 10,590 46,974 30,835
Net income $ 27,371 $ 28,429 $ 27,337 $ 12,950 $ 18,363 $ 83,137 $ 53,570
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) 2014 2014 2014 2013 2013 2014 2013
PER SHARE DATA
Diluted earnings per common share $ 0.41 $ 0.43 $ 0.42 $ 0.19 $ 0.33 $ 1.26 $ 0.95
Diluted earnings per common share excluding intangible amortization 0.42 0.44 0.43 0.21 0.33 1.29 0.97
Basic earnings per common share 0.41 0.44 0.42 0.19 0.33 1.27 0.96
Dividends per share - common 0.100 0.075 0.075 0.075 0.075 0.250 0.215
Book value per common share 14.42 13.77 13.34 12.92 9.69 14.42 9.69
Tangible book value per common share 9.39 8.83 8.38 7.94 7.99 9.39 7.99
STOCK INFORMATION
Average common shares outstanding 66,223 65,140 65,123 62,865 56,256 65,499 56,238
Average diluted shares outstanding 66,616 65,545 65,511 63,234 56,620 65,889 56,577
End of period common shares outstanding 66,483 65,142 65,135 65,082 56,278 66,483 56,278
ANNUALIZED PERFORMANCE METRICS
Return on average assets 1.56% 1.70% 1.64% 0.83% 1.80% 1.63% 1.73%
Return on average assets excluding intangible amortization 1.68% 1.83% 1.77% 0.91% 1.89% 1.76% 1.82%
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) 3.08% 3.27% 3.26% 2.86% 3.09% 3.20% 2.93%
Return on average common equity 11.58% 12.96% 13.00% 6.68% 13.63% 12.48% 13.53%
Return on average tangible common equity excluding intangible amortization 18.46% 20.94% 21.48% 10.83% 17.04% 20.21% 16.99%
Efficiency ratio 45.70% 41.09% 42.07% 66.73% 45.67% 42.95% 45.56%
Core efficiency ratio 41.88% 41.56% 41.39% 45.22% 44.76% 41.61% 45.63%
Net interest margin - FTE 5.26% 5.50% 5.48% 5.09% 5.41% 5.41% 5.25%
Fully taxable equivalent adjustment $ 1,728 $ 1,624 $ 1,591 $ 1,133 $ 1,073 $ 4,943 $ 3,199
Total revenue 94,232 94,125 94,021 83,934 58,494 282,378 173,557
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to common shareholders $ 27,371 $ 28,429 $ 27,337 $ 12,950 $ 18,363 $ 83,137 $ 53,570
Intangible amortization after-tax 701 697 709 740 487 2,107 1,462
Earnings excluding intangible amortization $ 28,072 $ 29,126 $ 28,046 $ 13,690 $ 18,850 $ 85,244 $ 55,032
GAAP diluted earnings per share $ 0.41 $ 0.43 $ 0.42 $ 0.19 $ 0.33 $ 1.26 $ 0.95
Intangible amortization after-tax 0.01 0.01 0.01 0.02 -- 0.03 0.02
Diluted earnings per share excluding intangible amortization $ 0.42 $ 0.44 $ 0.43 $ 0.21 $ 0.33 $ 1.29 $ 0.97
OTHER OPERATING EXPENSES
Advertising $ 673 $ 581 $ 522 $ 653 $ 363 $ 1,776 $ 1,176
Merger and acquisition expenses 3,772 106 849 17,315 1,034 4,727 1,063
Amortization of intangibles 1,153 1,147 1,167 1,218 802 3,467 2,406
Electronic banking expense 1,307 1,312 1,338 1,458 926 3,957 2,749
Directors' fees 236 206 227 179 188 669 588
Due from bank service charges 200 205 199 179 136 604 437
FDIC and state assessment 972 1,058 1,114 858 684 3,144 1,991
Insurance 657 582 614 756 572 1,853 1,693
Legal and accounting 510 419 417 450 227 1,346 943
Other professional fees 716 583 507 561 404 1,806 1,367
Operating supplies 468 515 472 455 309 1,455 984
Postage 323 327 352 295 212 1,002 650
Telephone 548 463 454 375 291 1,465 885
Other expense 3,879 4,259 4,173 3,410 2,462 12,311 7,258
Total other operating expenses $ 15,414 $ 11,763 $ 12,405 $ 28,162 $ 8,610 $ 39,582 $ 24,190
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
(Dollars in thousands) Sep. 30,
2014
Jun. 30,
2014
Mar. 31,
2014
Dec. 31,
2013
Sep. 30,
2013
BALANCE SHEET RATIOS
Total loans to total deposits 91.60% 84.67% 82.37% 83.01% 82.70%
Common equity to assets 13.3% 13.5% 12.8% 12.3% 13.1%
Tangible common equity to tangible assets 9.1% 9.1% 8.5% 8.0% 11.1%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period $ 48,248 $ 44,024 $ 39,022 $ 37,642 $ 40,498
Loans charged off 2,544 2,526 2,424 2,417 5,101
Recoveries of loans previously charged off 750 635 488 358 2,245
Net loans (recovered)/charged off 1,794 1,891 1,936 2,059 2,856
Provision for loan losses 4,241 6,115 6,938 3,439 --
Balance, end of period $ 50,695 $ 48,248 $ 44,024 $ 39,022 $ 37,642
Discount for credit losses on non-covered loans acquired 148,172 157,705 164,324 174,637 77,413
Net (recoveries) charge-offs on loans not covered by loss share to average non-covered loans 0.16% 0.18% 0.19% 0.22% 0.48%
Allowance for loan losses for non-covered loans to total non-covered loans 1.11% 1.17% 1.07% 0.93% 1.58%
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 4.20% 4.80% 4.86% 4.89% 4.68%
Covered
Balance, beginning of period $ 2,925 $ 4,967 $ 4,793 $ 1,106 $ 952
Loans charged off 863 1,051 -- 287 --
Recoveries of loans previously charged off 87 128 174 29 154
Net loans charged off/(recovered) 776 923 (174) 258 (154)
Provision for loan losses forecasted outside of loss share -- 280 -- -- --
Provision for loan losses before benefit attributable to FDIC loss share agreements -- (1,399) -- 3,945 --
Benefit attributable to FDIC loss share agreements -- 1,119 -- (3,054) --
Net provision for loan losses -- -- -- 891 --
Increase (decrease) in FDIC indemnificaton asset -- (1,119) -- 3,054 --
Balance, end of period $ 2,149 $ 2,925 $ 4,967 $ 4,793 $ 1,106
Total allowance for loan losses $ 52,844 $ 51,173 $ 48,991 $ 43,815 $ 38,748
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans $ 22,381 $ 21,900 $ 20,697 $ 15,133 $ 17,187
Non-covered loans past due 90 days or more 18,644 23,081 21,981 23,141 11,248
Total non-performing non-covered loans 41,025 44,981 42,678 38,274 28,435
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 19,367 20,960 23,484 29,869 14,158
Other non-performing non-covered assets -- 10 47 281 185
Total other non-performing non-covered assets 19,367 20,970 23,531 30,150 14,343
Total non-performing non-covered assets $ 60,392 $ 65,951 $ 66,209 $ 68,424 $ 42,778
Allowance for loan losses for non-covered loans to non-performing non-covered loans 123.57% 107.26% 103.15% 101.95% 132.38%
Non-performing non-covered loans to total non-covered loans 0.90% 1.09% 1.03% 0.91% 1.20%
Non-performing non-covered assets to total non-covered assets 0.88% 1.04% 1.03% 1.07% 1.15%
Home BancShares, Inc.
Loan Information
(Unaudited)
(Dollars in thousands) Sep. 30,
2014
Jun. 30,
2014
Mar. 31,
2014
Dec. 31,
2013
Sep. 30,
2013
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 1,918,827 $ 1,733,029 $ 1,722,910 $ 1,739,668 $ 1,026,937
Construction/land development 660,107 603,216 566,205 562,667 314,232
Agricultural 78,243 64,409 74,775 81,618 31,906
Residential real estate loans
Residential 1-4 family 935,547 887,097 890,981 913,332 529,732
Multifamily residential 251,726 218,615 206,348 213,232 117,639
Total real estate 3,844,450 3,506,366 3,461,219 3,510,517 2,020,446
Consumer 57,821 56,197 60,735 69,570 30,478
Commercial and industrial 547,706 447,459 491,525 511,421 268,900
Agricultural 64,875 56,852 44,017 37,129 30,612
Other 68,163 66,235 69,068 65,800 28,402
Loans receivable not covered by loss share $ 4,583,015 $ 4,133,109 $ 4,126,564 $ 4,194,437 $ 2,378,838
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 99,518 $ 107,171 $ 113,593 $ 117,164 $ 134,843
Construction/land development 42,713 44,763 45,381 48,388 51,492
Agricultural 1,039 1,145 1,184 1,232 1,253
Residential real estate loans
Residential 1-4 family 90,088 91,706 92,918 98,403 102,673
Multifamily residential 8,263 10,002 10,043 10,378 10,525
Total real estate 241,621 254,787 263,119 275,565 300,786
Consumer 22 20 16 20 17
Commercial and industrial 8,295 7,368 6,440 5,852 6,291
Agricultural -- -- -- -- --
Other 1,032 982 1,066 1,079 978
Loans receivable covered by loss share $ 250,970 $ 263,157 $ 270,641 $ 282,516 $ 308,072
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
September 30, 2014 June 30, 2014
(Dollars in thousands) Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
ASSETS
Earning assets
Interest-bearing balances due from banks $ 40,723 $ 20 0.19% $ 54,726 $ 29 0.21%
Federal funds sold 13,604 7 0.20% 23,349 12 0.21%
Investment securities - taxable 1,044,732 4,905 1.86% 1,038,011 4,762 1.84%
Investment securities - non-taxable - FTE 302,859 4,174 5.47% 287,679 3,889 5.42%
Loans receivable - FTE 4,661,600 76,024 6.47% 4,403,767 75,518 6.88%
Total interest-earning assets 6,063,518 85,130 5.57% 5,807,532 84,210 5.82%
Non-earning assets 907,407 914,388
Total assets $ 6,970,925 $ 6,721,920
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 2,835,267 $ 1,376 0.19% $ 2,808,856 $ 1,227 0.18%
Time deposits 1,315,772 1,867 0.56% 1,380,249 1,868 0.54%
Total interest-bearing deposits 4,151,039 3,243 0.31% 4,189,105 3,095 0.30%
Federal funds purchased 2,364 2 0.34% 110 -- 0.00%
Securities sold under agreement to repurchase 150,239 186 0.49% 136,444 168 0.49%
FHLB borrowed funds 494,650 1,035 0.83% 376,326 952 1.01%
Subordinated debentures 60,826 330 2.15% 60,826 328 2.16%
Total interest-bearing liabilities 4,859,118 4,796 0.39% 4,762,811 4,543 0.38%
Non-interest bearing liabilities
Non-interest bearing deposits 1,148,923 1,054,233
Other liabilities 25,090 24,832
Total liabilities 6,033,131 5,841,876
Shareholders' equity 937,794 880,044
Total liabilities and shareholders' equity $ 6,970,925 $ 6,721,920
Net interest spread 5.18% 5.44%
Net interest income and margin - FTE $ 80,334 5.26% $ 79,667 5.50%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Nine Months Ended
September 30, 2014 September 30, 2013
(Dollars in thousands) Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
ASSETS
Earning assets
Interest-bearing balances due from banks $ 52,741 $ 73 0.19% $ 108,646 $ 203 0.25%
Federal funds sold 22,746 35 0.21% 10,060 15 0.20%
Investment securities - taxable 1,029,496 14,137 1.84% 571,375 7,538 1.76%
Investment securities - non-taxable - FTE 292,349 11,852 5.42% 173,796 7,275 5.60%
Loans receivable - FTE 4,498,643 226,674 6.74% 2,672,088 133,577 6.68%
Total interest-earning assets 5,895,975 252,771 5.73% 3,535,965 148,608 5.62%
Non-earning assets 923,800 592,438
Total assets $ 6,819,775 $ 4,128,403
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 2,809,963 $ 3,882 0.18% $ 1,747,040 $ 2,191 0.17%
Time deposits 1,407,255 5,840 0.55% 906,015 4,233 0.62%
Total interest-bearing deposits 4,217,218 9,722 0.31% 2,653,055 6,424 0.32%
Federal funds purchased 1,001 2 0.27% 510 3 0.00%
Securities sold under agreement to repurchase 145,348 536 0.49% 72,078 253 0.47%
FHLB borrowed funds 416,531 2,933 0.94% 135,093 2,926 2.90%
Subordinated debentures 60,826 986 2.17% 11,023 263 3.19%
Total interest-bearing liabilities 4,840,924 14,179 0.39% 2,871,759 9,869 0.46%
Non-interest bearing liabilities
Non-interest bearing deposits 1,068,626 704,123
Other liabilities 19,642 22,967
Total liabilities 5,929,192 3,598,849
Shareholders' equity 890,583 529,554
Total liabilities and shareholders' equity $ 6,819,775 $ 4,128,403
Net interest spread 5.34% 5.16%
Net interest income and margin - FTE $ 238,592 5.41% $ 138,739 5.25%

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

Source:Home BancShares, Inc.