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Home BancShares, Inc. Announces 70% Growth in Earnings for 2014 Plus Fourth Quarter Organic Loan Growth of $113.2 Million

CONWAY, Ark., Jan. 15, 2015 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced record net income for the year ended December 31, 2014 of $113.1 million compared to $66.5 million for the year ended 2013 for a 70.0% increase. Diluted earnings per share for the year ended 2014 was $1.70 per share compared to $1.14 per share for 2013. Excluding the $6.4 million of 2014 merger expenses associated with the acquisitions of Florida Traditions (Traditions) and Broward Financial Holdings, Inc. (Broward), diluted earnings per share for the year ended 2014 was $1.76 per share. Excluding the $18.4 million of 2013 merger expenses associated with the acquisition of Liberty Bancshares, Inc. (Liberty), diluted earnings per share for the year ended 2013 was $1.33 per share. Excluding merger expenses, this represents an increase of $0.43 per share or 32.3% for the year ended 2014 when compared to the previous year.

For the fourth quarter of 2014, the Company recorded a record quarterly profit of $29.9 million, or $0.44 diluted earnings per share for the fourth quarter of 2014 compared to $13.0 million, or $0.19 diluted earnings per share for the same quarter in 2013. The Company increased its fourth quarter earnings by $17.0 million, or 131.1%, for the three months ended December 31, 2014 compared to the same period of the previous year. Excluding the $1.7 million of merger expenses associated with the recently completed acquisition of Broward, diluted earnings per share for the fourth quarter of 2014 was $0.46 per share.

On October 23, 2014, the Company completed its acquisition of Broward. As of acquisition date, Broward had approximately $174.6 million in total assets, $121.1 million in total loans after $3.0 million of loan discounts, and $134.2 million in deposits. From September 30, 2014 to December 31, 2014, the Company had $234.3 million growth in non-covered loans. Excluding the loans acquired from Broward, the Company produced $113.2 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 fourth quarter of 2014 was $0.46 compared to $0.21 diluted earnings per share excluding intangible amortization for the same period in 2013.

"I am excited to report the Company has achieved another record quarter and record year with outstanding metrics," said John Allison, Chairman. "Our team stayed focused throughout the year on improving efficiencies, executing acquisition opportunities and growing loans and we've reaped the benefits of this hard work through record results. I am looking forward to watching our team succeed again in the coming year as they continue to improve the Company's financial metrics in order to maximize returns to our shareholders."

"We are pleased with another quarter of significant organic loan growth totaling $113.2 million for the fourth quarter of 2014," said Randy Sims, Chief Executive Officer. "On the income side, diluted earnings per share excluding merger expenses was $0.46 per share which brings us to the fifteenth consecutive quarter reporting the most profitable quarter in the Company's history. We once again improved both the core efficiency ratio and return on average assets excluding merger expenses ratio to 40.15% and 1.67%, respectively, for the fourth 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 fourth quarter 2014 impairment testing, no pools were determined to have a material projected credit improvement since the third quarter of 2014 testing. As a result, yields on loans and net interest margin for the quarter just ended are relatively comparable to the third quarter of 2014.

Net interest income for the fourth quarter of 2014 increased 24.3% to $83.4 million from $67.1 million during the fourth quarter of 2013. For the fourth quarter of 2014, the effective yield on non-covered loans and covered loans was 5.89% and 16.53%, 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, Traditions and Broward 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 $1.0 million increase in the provision for loan losses for non-covered loans during the fourth 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 and Broward 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 December 31, 2013. 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 $10.2 million of non-interest income for the fourth quarter of 2014, compared to $12.2 million for the fourth quarter of 2013. The most important components of the fourth quarter non-interest income were $6.3 million from other service charges and fees, $6.1 million from service charges on deposits accounts, $2.3 million from mortgage lending income, $977,000 from insurance commissions, $652,000 from other income, $313,000 from trust fees, and $264,000 from gain on sale of OREO offset by the $7.4 million of net amortization on the FDIC indemnification asset and $97,000 loss on sale of premises and equipment.

Non-interest expense for the fourth quarter of 2014 was $41.1 million compared to $54.9 million for the fourth quarter of 2013. Non-interest expense excluding merger expenses was $39.4 million for the fourth quarter of 2014 compared to $37.6 million for the same quarter in 2013. The increase in non-interest expense excluding merger expenses this quarter was only $1.8 million more than a year ago even though we had the Liberty acquisition for 24 extra days, the Broward acquisition for 69 days and the Traditions acquisition for a full quarter during 2014. As a result, for the fourth quarter of 2014, our core efficiency ratio was 40.15% which is improved from the 45.22% reported for fourth quarter of 2013.

Financial Condition

Total non-covered loans were $4.82 billion at December 31, 2014 compared to $4.19 billion at December 31, 2013. Total covered loans were $240.2 million at December 31, 2014 compared to $282.5 million at December 31, 2013. Total deposits were $5.42 billion at December 31, 2014 compared to $5.39 billion at December 31, 2013. Total assets were $7.40 billion at December 31, 2014 compared to $6.81 billion at December 31, 2013.

Non-performing non-covered loans were $39.6 million as of December 31, 2014, of which $14.8 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 0.82% as of December 31, 2014 compared to 0.91% as of December 31, 2013. Non-performing non-covered assets were $56.5 million as of December 31, 2014, of which $17.0 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 0.79% as of December 31, 2014 compared to 1.07% as of December 31, 2013.

The Company's allowance for loan losses for non-covered loans was $52.5 million at December 31, 2014, or 1.09% of total non-covered loans, compared to $39.0 million, or 0.93% of total non-covered loans, at December 31, 2013. As of December 31, 2014 and 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 3.88% and 4.89%, respectively. This decrease is the result of projected credit improvement on the acquired impaired loans. As of December 31, 2014 and 2013, the Company's allowance for loan losses for non-covered loans was 133% and 102% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $1.02 billion at December 31, 2014 compared to $841.0 million at December 31, 2013, an increase of $174.3 million. Book value per common share was $15.03 at December 31, 2014 compared to $12.92 at December 31, 2013. Tangible book value per common share was $9.90 at December 31, 2014 compared to $7.94 December 31, 2013 for an increase of 24.7%.

Branches

During the fourth quarter of 2014, the Company acquired two branches through the acquisition of Broward. During the first quarter of 2015, the Company has plans to close one branch in Longwood, Florida. The Company has 82 branches in Arkansas, 61 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 15, 2015. 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: 10057513, which will be available until January 23, 2015 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)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(In thousands) 2014 2014 2014 2014 2013
ASSETS
Cash and due from banks $ 105,438 $ 109,067 $ 122,167 $ 124,662 $ 104,005
Interest-bearing deposits with other banks 7,090 28,416 21,385 89,897 61,529
Cash and cash equivalents 112,528 137,483 143,552 214,559 165,534
Federal funds sold 250 44,275 850 22,925 4,275
Investment securities - available-for-sale 1,067,287 1,067,617 1,122,803 1,175,827 1,175,484
Investment securities - held-to-maturity 356,790 296,036 205,566 132,363 114,621
Loans receivable not covered by loss share 4,817,314 4,583,015 4,133,109 4,126,564 4,194,437
Loans receivable covered by FDIC loss share 240,188 250,970 263,157 270,641 282,516
Allowance for loan losses (55,011) (52,844) (51,173) (48,991) (43,815)
Loans receivable, net 5,002,491 4,781,141 4,345,093 4,348,214 4,433,138
Bank premises and equipment, net 206,912 211,726 196,194 196,392 197,224
Foreclosed assets held for sale not covered by loss share 16,951 19,367 20,960 23,484 29,869
Foreclosed assets held for sale covered by FDIC loss share 7,871 13,513 17,196 20,201 20,999
FDIC indemnification asset 28,409 42,104 56,626 73,348 89,611
Cash value of life insurance 74,444 70,913 64,066 63,787 63,501
Accrued interest receivable 24,075 23,366 20,847 21,865 22,944
Deferred tax asset, net 65,227 68,070 73,151 82,886 89,412
Goodwill 325,423 313,320 301,736 301,736 301,736
Core deposit and other intangibles 20,925 21,004 19,984 21,131 22,298
Other assets 93,689 86,436 77,516 82,058 81,215
Total assets $ 7,403,272 $ 7,196,371 $ 6,666,140 $ 6,780,776 $ 6,811,861
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing $ 1,203,306 $ 1,170,441 $ 1,129,073 $ 1,057,148 $ 991,161
Savings and interest-bearing transaction accounts 2,974,850 2,830,829 2,756,060 2,827,787 2,792,423
Time deposits 1,245,815 1,276,001 1,306,876 1,453,575 1,609,462
Total deposits 5,423,971 5,277,271 5,192,009 5,338,510 5,393,046
Federal funds purchased -- -- -- -- --
Securities sold under agreements to repurchase 176,465 160,895 144,602 137,524 160,984
FHLB borrowed funds 697,957 713,553 349,110 354,935 350,661
Accrued interest payable and other liabilities 28,761 25,145 22,358 20,113 5,389
Subordinated debentures 60,826 60,826 60,826 60,826 60,826
Total liabilities 6,387,980 6,237,690 5,768,905 5,911,908 5,970,906
Stockholders' equity
Common stock 676 665 651 651 651
Capital surplus 781,328 749,573 709,516 708,868 708,058
Retained earnings 226,279 203,107 182,382 158,838 136,386
Accumulated other comprehensive income (loss) 7,009 5,336 4,686 511 (4,140)
Total stockholders' equity 1,015,292 958,681 897,235 868,868 840,955
Total liabilities and stockholders' equity $ 7,403,272 $ 7,196,371 $ 6,666,140 $ 6,780,776 $ 6,811,861
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) 2014 2014 2014 2014 2013 2014 2013
Interest income
Loans $ 80,011 $ 75,917 $ 75,404 $ 75,013 $ 65,338 $ 306,345 $ 198,536
Investment securities
Taxable 5,168 4,905 4,762 4,470 4,760 19,305 12,298
Tax-exempt 2,843 2,552 2,379 2,317 1,554 10,091 6,009
Deposits - other banks 24 20 29 24 51 97 254
Federal funds sold 15 7 12 16 14 50 29
Total interest income 88,061 83,401 82,586 81,840 71,717 335,888 217,126
Interest expense
Interest on deposits 3,074 3,243 3,095 3,384 3,320 12,796 9,744
Federal funds purchased 1 2 -- -- 1 3 4
FHLB borrowed funds 1,108 1,035 952 946 915 4,041 3,841
Securities sold under agreements to repurchase 181 186 168 182 171 717 424
Subordinated debentures 327 330 328 328 255 1,313 518
Total interest expense 4,691 4,796 4,543 4,840 4,662 18,870 14,531
Net interest income 83,370 78,605 78,043 77,000 67,055 317,018 202,595
Provision for loan losses 5,370 4,241 6,115 6,938 4,330 22,664 5,180
Net interest income after provision for loan losses 78,000 74,364 71,928 70,062 62,725 294,354 197,415
Non-interest income
Service charges on deposit accounts 6,143 6,275 6,193 5,911 6,001 24,522 17,870
Other service charges and fees 6,273 5,977 5,978 5,686 5,146 23,914 15,733
Trust fees 313 306 323 436 284 1,378 335
Mortgage lending income 2,341 1,901 1,801 1,513 1,470 7,556 5,988
Insurance commissions 977 984 934 1,416 778 4,311 2,420
Income from title services 60 59 53 50 122 222 523
Increase in cash value of life insurance 319 322 281 288 235 1,210 836
Dividends from FHLB, FRB, Bankers' bank & other 405 389 501 316 273 1,611 1,028
Gain on sale of SBA loans -- 183 -- -- -- 183 135
Gain (loss) on sale of premises & equipment, net (97) (35) 445 9 (315) 322 397
Gain (loss) on OREO, net 264 529 859 539 347 2,191 1,651
Gain (loss) on securities, net -- -- -- -- -- -- 111
FDIC indemnification accretion/(amortization), net (7,439) (6,947) (6,622) (4,744) (2,949) (25,752) (10,401)
Other income 652 888 793 761 825 3,094 3,739
Total non-interest income 10,211 10,831 11,539 12,181 12,217 44,762 40,365
Non-interest expense
Salaries and employee benefits 19,911 19,368 18,813 18,933 19,504 77,025 58,394
Occupancy and equipment 6,320 6,234 6,251 6,226 5,670 25,031 17,168
Data processing expense 1,842 1,801 1,793 1,793 1,538 7,229 5,393
Other operating expenses 13,076 15,414 11,763 12,405 28,162 52,658 52,352
Total non-interest expense 41,149 42,817 38,620 39,357 54,874 161,943 133,307
Income before income taxes 47,062 42,378 44,847 42,886 20,068 177,173 104,473
Income tax expense 17,136 15,007 16,418 15,549 7,118 64,110 37,953
Net income $ 29,926 $ 27,371 $ 28,429 $ 27,337 $ 12,950 $ 113,063 $ 66,520
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) 2014 2014 2014 2014 2013 2014 2013
PER SHARE DATA
Diluted earnings per common share $ 0.44 $ 0.41 $ 0.43 $ 0.42 $ 0.19 $ 1.70 $ 1.14
Diluted earnings per common share excluding intangible amortization 0.46 0.42 0.44 0.43 0.21 1.75 1.18
Basic earnings per common share 0.44 0.41 0.44 0.42 0.19 1.71 1.15
Dividends per share - common 0.100 0.100 0.075 0.075 0.075 0.350 0.290
Book value per common share 15.03 14.42 13.77 13.34 12.92 15.03 12.92
Tangible book value per common share 9.90 9.39 8.83 8.38 7.94 9.90 7.94
STOCK INFORMATION
Average common shares outstanding 67,291 66,223 65,140 65,123 62,865 65,951 57,908
Average diluted shares outstanding 67,653 66,616 65,545 65,511 63,234 66,331 58,252
End of period common shares outstanding 67,571 66,483 65,142 65,135 65,082 67,571 65,082
ANNUALIZED PERFORMANCE METRICS
Return on average assets 1.62% 1.56% 1.70% 1.64% 0.83% 1.63% 1.43%
Return on average assets excluding intangible amortization 1.74% 1.68% 1.83% 1.77% 0.91% 1.75% 1.52%
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) 3.13% 3.08% 3.27% 3.26% 2.86% 3.19% 2.91%
Return on average common equity 11.96% 11.58% 12.96% 13.00% 6.68% 12.34% 11.27%
Return on average tangible common equity excluding intangible amortization 18.72% 18.46% 20.94% 21.48% 10.83% 19.80% 15.26%
Efficiency ratio 41.87% 45.70% 41.09% 42.07% 66.73% 42.67% 52.44%
Core efficiency ratio 40.15% 41.88% 41.56% 41.39% 45.22% 41.23% 45.49%
Net interest margin - FTE 5.26% 5.26% 5.50% 5.48% 5.09% 5.37% 5.19%
Fully taxable equivalent adjustment $ 1,911 $ 1,728 $ 1,624 $ 1,591 $ 1,133 $ 6,854 $ 4,332
Total revenue 98,272 94,232 94,125 94,021 83,934 380,650 257,491
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to common shareholders $ 29,926 $ 27,371 $ 28,429 $ 27,337 $ 12,950 $ 113,063 $ 66,520
Intangible amortization after-tax 707 701 697 709 740 2,814 2,202
Earnings excluding intangible amortization $ 30,633 $ 28,072 $ 29,126 $ 28,046 $ 13,690 $ 115,877 $ 68,722
GAAP diluted earnings per share $ 0.44 $ 0.41 $ 0.43 $ 0.42 $ 0.19 $ 1.70 $ 1.14
Intangible amortization after-tax 0.02 0.01 0.01 0.01 0.02 0.05 0.04
Diluted earnings per share excluding intangible amortization $ 0.46 $ 0.42 $ 0.44 $ 0.43 $ 0.21 $ 1.75 $ 1.18
OTHER OPERATING EXPENSES
Advertising $ 792 $ 673 $ 581 $ 522 $ 653 $ 2,568 $ 1,829
Merger and acquisition expenses 1,711 3,772 106 849 17,315 6,438 18,378
Amortization of intangibles 1,163 1,153 1,147 1,167 1,218 4,630 3,624
Electronic banking expense 1,351 1,307 1,312 1,338 1,458 5,308 4,207
Directors' fees 243 236 206 227 179 912 767
Due from bank service charges 199 200 205 199 179 803 616
FDIC and state assessment 1,144 972 1,058 1,114 858 4,288 2,849
Insurance 685 657 582 614 756 2,538 2,449
Legal and accounting 666 510 419 417 450 2,012 1,393
Other professional fees 394 716 583 507 561 2,200 1,928
Operating supplies 473 468 515 472 455 1,928 1,439
Postage 329 323 327 352 295 1,331 945
Telephone 503 548 463 454 375 1,968 1,260
Other expense 3,423 3,879 4,259 4,173 3,410 15,734 10,668
Total other operating expenses $ 13,076 $ 15,414 $ 11,763 $ 12,405 $ 28,162 $ 52,658 $ 52,352
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(Dollars in thousands) 2014 2014 2014 2014 2013
BALANCE SHEET RATIOS
Total loans to total deposits 93.24% 91.60% 84.67% 82.37% 83.01%
Common equity to assets 13.7% 13.3% 13.5% 12.8% 12.3%
Tangible common equity to tangible assets 9.5% 9.1% 9.1% 8.5% 8.0%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period $ 50,695 $ 48,248 $ 44,024 $ 39,022 $ 37,642
Loans charged off 3,811 2,544 2,526 2,424 2,417
Recoveries of loans previously charged off 1,121 750 635 488 358
Net loans (recovered)/charged off 2,690 1,794 1,891 1,936 2,059
Provision for loan losses 4,466 4,241 6,115 6,938 3,439
Balance, end of period $ 52,471 $ 50,695 $ 48,248 $ 44,024 $ 39,022
Discount for credit losses on non-covered loans acquired 139,720 148,172 157,705 164,324 174,637
Net (recoveries) charge-offs on loans not covered by loss share to average non-covered loans 0.23% 0.16% 0.18% 0.19% 0.22%
Allowance for loan losses for non-covered loans to total non-covered loans 1.09% 1.11% 1.17% 1.07% 0.93%
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 3.88% 4.20% 4.80% 4.86% 4.89%
Covered
Balance, beginning of period $ 2,149 $ 2,925 $ 4,967 $ 4,793 $ 1,106
Loans charged off 858 863 1,051 -- 287
Recoveries of loans previously charged off 345 87 128 174 29
Net loans charged off/(recovered) 513 776 923 (174) 258
Provision for loan losses forecasted outside of loss share 904 -- 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 904 -- -- -- 891
Increase (decrease) in FDIC indemnificaton asset -- -- (1,119) -- 3,054
Balance, end of period $ 2,540 $ 2,149 $ 2,925 $ 4,967 $ 4,793
Total allowance for loan losses $ 55,011 $ 52,844 $ 51,173 $ 48,991 $ 43,815
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans $ 24,691 $ 22,381 $ 21,900 $ 20,697 $ 15,133
Non-covered loans past due 90 days or more 14,871 18,644 23,081 21,981 23,141
Total non-performing non-covered loans 39,562 41,025 44,981 42,678 38,274
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 16,951 19,367 20,960 23,484 29,869
Other non-performing non-covered assets -- -- 10 47 281
Total other non-performing non-covered assets 16,951 19,367 20,970 23,531 30,150
Total non-performing non-covered assets $ 56,513 $ 60,392 $ 65,951 $ 66,209 $ 68,424
Allowance for loan losses for non-covered loans to non-performing non-covered loans 132.63% 123.57% 107.26% 103.15% 101.95%
Non-performing non-covered loans to total non-covered loans 0.82% 0.90% 1.09% 1.03% 0.91%
Non-performing non-covered assets to total non-covered assets 0.79% 0.88% 1.04% 1.03% 1.07%
Home BancShares, Inc.
Loan Information
(Unaudited)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(Dollars in thousands) 2014 2014 2014 2014 2013
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 1,987,890 $ 1,918,827 $ 1,733,029 $ 1,722,910 $ 1,739,668
Construction/land development 700,139 660,107 603,216 566,205 562,667
Agricultural 72,211 78,243 64,409 74,775 81,618
Residential real estate loans
Residential 1-4 family 963,990 935,547 887,097 890,981 913,332
Multifamily residential 250,222 251,726 218,615 206,348 213,232
Total real estate 3,974,452 3,844,450 3,506,366 3,461,219 3,510,517
Consumer 56,720 57,821 56,197 60,735 69,570
Commercial and industrial 670,124 547,706 447,459 491,525 511,421
Agricultural 48,833 64,875 56,852 44,017 37,129
Other 67,185 68,163 66,235 69,068 65,800
Loans receivable not covered by loss share $ 4,817,314 $ 4,583,015 $ 4,133,109 $ 4,126,564 $ 4,194,437
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 93,979 $ 99,518 $ 107,171 $ 113,593 $ 117,164
Construction/land development 39,946 42,713 44,763 45,381 48,388
Agricultural 943 1,039 1,145 1,184 1,232
Residential real estate loans
Residential 1-4 family 87,309 90,088 91,706 92,918 98,403
Multifamily residential 8,617 8,263 10,002 10,043 10,378
Total real estate 230,794 241,621 254,787 263,119 275,565
Consumer 16 22 20 16 20
Commercial and industrial 8,651 8,295 7,368 6,440 5,852
Agricultural -- -- -- -- --
Other 727 1,032 982 1,066 1,079
Loans receivable covered by loss share $ 240,188 $ 250,970 $ 263,157 $ 270,641 $ 282,516
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
December 31, 2014 September 30, 2014
Average Income/ Yield/ Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate Balance Expense Rate
ASSETS
Earning assets
Interest-bearing balances due from banks $ 41,048 $ 24 0.23% $ 40,723 $ 20 0.19%
Federal funds sold 27,792 15 0.21% 13,604 7 0.20%
Investment securities - taxable 1,076,415 5,168 1.90% 1,044,732 4,905 1.86%
Investment securities - non-taxable - FTE 326,873 4,650 5.64% 302,859 4,174 5.47%
Loans receivable - FTE 4,955,990 80,114 6.41% 4,661,600 76,024 6.47%
Total interest-earning assets 6,428,118 89,971 5.55% 6,063,518 85,130 5.57%
Non-earning assets 917,892 907,407
Total assets $ 7,346,010 $ 6,970,925
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 2,926,471 $ 1,396 0.19% $ 2,835,267 $ 1,376 0.19%
Time deposits 1,272,433 1,678 0.52% 1,315,772 1,867 0.56%
Total interest-bearing deposits 4,198,904 3,074 0.29% 4,151,039 3,243 0.31%
Federal funds purchased 824 1 0.48% 2,364 2 0.34%
Securities sold under agreement to repurchase 170,192 181 0.42% 150,239 186 0.49%
FHLB borrowed funds 695,085 1,108 0.63% 494,650 1,035 0.83%
Subordinated debentures 60,826 327 2.13% 60,826 330 2.15%
Total interest-bearing liabilities 5,125,831 4,691 0.36% 4,859,118 4,796 0.39%
Non-interest bearing liabilities
Non-interest bearing deposits 1,200,726 1,148,923
Other liabilities 26,892 25,090
Total liabilities 6,353,449 6,033,131
Shareholders' equity 992,561 937,794
Total liabilities and shareholders' equity $ 7,346,010 $ 6,970,925
Net interest spread 5.19% 5.18%
Net interest income and margin - FTE $ 85,280 5.26% $ 80,334 5.26%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Year Ended
December 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 $ 49,794 $ 97 0.19% $ 102,777 $ 254 0.25%
Federal funds sold 24,018 50 0.21% 13,619 29 0.21%
Investment securities - taxable 1,041,322 19,305 1.85% 665,495 12,298 1.85%
Investment securities - non-taxable - FTE 301,051 16,502 5.48% 198,198 9,814 4.95%
Loans receivable - FTE 4,613,919 306,788 6.65% 3,005,470 199,063 6.62%
Total interest-earning assets 6,030,104 342,742 5.68% 3,985,559 221,458 5.56%
Non-earning assets 922,311 668,656
Total assets $ 6,952,415 $ 4,654,215
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 2,839,329 $ 5,279 0.19% $ 1,939,497 $ 3,437 0.18%
Time deposits 1,373,273 7,517 0.55% 1,038,246 6,307 0.61%
Total interest-bearing deposits 4,212,602 12,796 0.30% 2,977,743 9,744 0.33%
Federal funds purchased 956 3 0.31% 520 4 0.77%
Securities sold under agreement to repurchase 151,610 717 0.47% 88,081 424 0.48%
FHLB borrowed funds 486,742 4,041 0.83% 191,258 3,841 2.01%
Subordinated debentures 60,826 1,313 2.16% 19,938 518 2.60%
Total interest-bearing liabilities 4,912,736 18,870 0.38% 3,277,540 14,531 0.44%
Non-interest bearing liabilities
Non-interest bearing deposits 1,101,923 761,540
Other liabilities 21,469 25,071
Total liabilities 6,036,128 4,064,151
Shareholders' equity 916,287 590,064
Total liabilities and shareholders' equity $ 6,952,415 $ 4,654,215
Net interest spread 5.30% 5.12%
Net interest income and margin - FTE $ 323,872 5.37% $ 206,927 5.19%

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

Source:Home BancShares, Inc.