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Home BancShares, Inc. Announces Record Quarterly Earnings of $31.1 Million

CONWAY, Ark., April 16, 2015 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced a record quarterly profit of $31.1 million, or $0.46 diluted earnings per share for the first quarter of 2015 compared to $27.3 million or $0.42 diluted earnings per share for the same quarter in 2014. The Company increased its first quarter earnings by $3.8 million or 13.8% for the three months ended March 31, 2015 compared to the same period of the previous year. Excluding the $1.4 million of merger expenses offset by $1.6 million of one-time gain on acquisition associated with the recently completed acquisition of Doral Bank's Florida Panhandle operations ("Doral Florida"), diluted earnings per share for the first quarter of 2015 remained $0.46 per share. Excluding the $918,000 of net provision for loan loss on covered loans, the diluted earnings per share for the first quarter of 2015 was $0.47 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 2015 was $0.47 compared to $0.43 diluted earnings per share excluding intangible amortization for the same period in 2014.

"With the recent acquisition of $289.1 million of national commercial real estate loans and the creation of the Centennial Commercial Finance Group, we are in a potentially prime position to ramp-up our momentum for generating organic loan growth, resulting in increased income for the Company," said John Allison, Chairman. "It's exciting to be well-positioned to take advantage of opportunities to enter new markets or expand our reach in our existing footprints as a result of our strong capital position."

"We are pleased to report the first quarter of 2015 as the sixteenth consecutive quarter reporting the most profitable quarter in the Company's history," said Randy Sims, Home BancShares, Inc. Chief Executive Officer. "The $1.2 million or 4.0% increase from our previously reported record earnings is truly another outstanding achievement. The Company also reported outstanding results for diluted earnings per share excluding merger expenses and one-time acquisition gain of $0.46 per share and core efficiency ratio of 40.84%."

Operating Highlights

Each quarter we perform credit impairment tests on the loans acquired in our FDIC loss-sharing and non-loss-sharing acquisitions. The first quarter 2015 impairment testing noted a slight decline in asset quality in a couple of covered loan pools which resulted in a net covered provision for loan loss of $918,000. Conversely, during 2014 and 2013, the quarterly impairment testing projected material credit improvements. As a result of these credit improvements, $78.3 million of adjustments to yield were determined to be recognized over the weighted average life of the loans. The recognition of these additional credit improvements has begun to slow down. Plus, the accretion income on the Liberty portfolio has begun to slow down. As result, there was a $4.7 million decline of recognized accretion yield from the fourth quarter of 2014 to the first quarter of 2015. Consequently, yields on loans and net interest margin for the quarter just ended are reduced when compared to the fourth quarter of 2014.

Net interest income for the first quarter of 2015 increased 2.7% to $79.1 million from $77.0 million during the first quarter of 2014. For the first quarter of 2015, the effective yield on non-covered loans and covered loans was 5.65% and 14.65%, respectively. Net interest margin, on a fully taxable equivalent basis, was 4.94% for the quarter just ended.

The Company experienced a $4.1 million decrease in the provision for loan losses for non-covered loans during the first quarter of 2015 versus 2014. This expected decrease is primarily a reflection of a slowdown in the migration of the acquired Liberty loans from purchased-loan accounting treatment to originated-loan accounting treatment combined with a lower level of non-performing loans. Based upon current accounting guidance, the allowance for loan losses is not carried over in an acquisition. As a result, none of the acquired loans had any allocation of the allowance for loan losses at merger date. This is the result of all loans acquired being recorded at fair value in accordance with the fair value methodology prescribed in ASC Topic 820. However, as the acquired loans payoff or renew and the acquired 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. Traditionally, there is a large migration of these loans during the first year after acquisition, which can create an elevated provision for loan losses as was the case during 2014 with respect to the Liberty acquisition.

The Company reported $14.7 million of non-interest income for the first quarter of 2015, compared to $12.2 million for the first quarter of 2014. The most important components of the first quarter non-interest income were $6.2 million from other service charges and fees, $5.4 million from service charges on deposits accounts, $1.9 million from mortgage lending income, $1.6 million one-time gain on acquisition, $1.2 million from other income, $567,000 from insurance commissions, $493,000 from gain on sale of OREO and $432,000 from trust fees offset by the $4.0 million of net amortization on the FDIC indemnification asset.

As a result of the previously mentioned 2013 and 2014 credit improvements, there was a $54.7 million decrease in the base of the indemnification asset to be recognized as FDIC amortization over the weighted average life of the loss-share agreements. The recognition of this amortization has begun to slow down as the five-year loss-share is beginning to expire. Consequently, there was a $3.5 million decline of FDIC indemnification amortization from the fourth quarter of 2014 to the first quarter of 2015.

Non-interest expense for the first quarter of 2015 was $40.7 million compared to $39.4 million for the first quarter of 2014. Non-interest expense excluding merger expenses was $39.3 million for the first quarter of 2015 compared to $38.5 million for the same quarter in 2014. The change in non-interest expense excluding merger expenses this quarter was relatively flat when compared to a year ago even though we completed the acquisitions of Florida Traditions Bank and Broward Financial Holdings, Inc. during the second half of 2014 and Doral Florida during the first quarter of 2015. As a result, for the first quarter of 2015, our core efficiency ratio was 40.84% which is improved from the 41.39% reported for first quarter of 2014.

Financial Condition

Total non-covered loans were $4.93 billion at March 31, 2015 compared to $4.82 billion at December 31, 2014. Total covered loans were $169.5 million at March 31, 2015 compared to $240.2 million at December 31, 2014. Total deposits were $5.90 billion at March 31, 2015 compared to $5.42 billion at December 31, 2014. Total assets were $7.51 billion at March 31, 2015 compared to $7.40 billion at December 31, 2014.

On February 27, 2015, the Company acquired all the deposits and substantially all the assets of Doral Florida through an alliance agreement with Banco Popular of Puerto Rico ("Popular") who was the successful lead bidder with the Federal Deposit Insurance Corporation ("FDIC") on the failed Doral Bank of San Juan, Puerto Rico. The Doral Florida acquisition provided approximately $37.9 million in total loans after $4.3 million of loan discounts and approximately $466.3 million in deposits.

During the first quarter of 2015, the five-year loss share agreements on the commercial real estate and commercial and industrial loans acquired through the FDIC-assisted acquisitions of Old Southern and Key West concluded. As a result, $56.3 million of these loans including their associated discounts previously classified as covered loans have migrated to non-covered loans status.

From December 31, 2014 to March 31, 2015, the Company had $112.7 million growth in non-covered loans. Excluding the loans acquired from Doral Florida and the migration of loans from covered to non-covered status, the Company produced approximately $18.5 million of organic non-covered loan growth since December 31, 2014.

Non-performing non-covered loans were $37.5 million as of March 31, 2015, of which $15.2 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 0.76% as of March 31, 2015 compared to 0.82% as of December 31, 2014. Non-performing non-covered assets were $54.9 million as of March 31, 2015, of which $18.1 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 0.75% as of March 31, 2015 compared to 0.79% as of December 31, 2014.

The Company's allowance for loan losses for non-covered loans was $52.7 million at March 31, 2015, or 1.07% of total non-covered loans, compared to $52.5 million, or 1.09% of total non-covered loans, at December 31, 2014. As of March 31, 2015 and December 31, 2014, 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 3.70% and 3.88%, respectively. This decrease is the result of projected credit improvement on the acquired impaired loans. As of March 31, 2015 and December 31, 2014, the Company's allowance for loan losses for non-covered loans was 141% and 133% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $1.04 billion at March 31, 2015 compared to $1.02 billion at December 31, 2014, an increase of $24.3 million. Book value per common share was $15.38 at March 31, 2015 compared to $15.03 at December 31, 2014. Tangible book value per common share was $10.30 at March 31, 2015 compared to $9.90 December 31, 2014 for an increase of 4.0%.

Branches

In an effort to achieve efficiencies primarily from the acquisitions prior to 2015, the Company closed one Florida location during the first quarter of 2015 and has plans to close one Arkansas and one Florida location during the second quarter of 2015. The Company currently has 82 branches in Arkansas, 60 branches in Florida, 7 branches in Alabama and has plans to open a loan production office in New York City.

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, April 16, 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: 10062460, which will be available until April 23, 2015 at 10:59 p.m. CT (11:59 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, 2014 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, South Alabama and has plans to open a loan production office in New York City. 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) 2015 2014 2014 2014 2014
ASSETS
Cash and due from banks $ 115,448 $ 105,438 $ 109,067 $ 122,167 $ 124,662
Interest-bearing deposits with other banks 82,123 7,090 28,416 21,385 89,897
Cash and cash equivalents 197,571 112,528 137,483 143,552 214,559
Federal funds sold 6,100 250 44,275 850 22,925
Investment securities - available-for-sale 1,069,745 1,067,287 1,067,617 1,122,803 1,175,827
Investment securities - held-to-maturity 344,518 356,790 296,036 205,566 132,363
Loans receivable not covered by loss share 4,929,989 4,817,314 4,583,015 4,133,109 4,126,564
Loans receivable covered by FDIC loss share 169,460 240,188 250,970 263,157 270,641
Allowance for loan losses (56,526) (55,011) (52,844) (51,173) (48,991)
Loans receivable, net 5,042,923 5,002,491 4,781,141 4,345,093 4,348,214
Bank premises and equipment, net 209,326 206,912 211,726 196,194 196,392
Foreclosed assets held for sale not covered by loss share 17,402 16,951 19,367 20,960 23,484
Foreclosed assets held for sale covered by FDIC loss share 6,309 7,871 13,513 17,196 20,201
FDIC indemnification asset 19,435 28,409 42,104 56,626 73,348
Cash value of life insurance 74,722 74,444 70,913 64,066 63,787
Accrued interest receivable 23,542 24,075 23,366 20,847 21,865
Deferred tax asset, net 59,594 65,227 68,070 73,151 82,886
Goodwill 322,728 325,423 313,320 301,736 301,736
Core deposit and other intangibles 20,916 20,925 21,004 19,984 21,131
Other assets 99,143 93,689 86,436 77,516 82,058
Total assets $ 7,513,974 $ 7,403,272 $ 7,196,371 $ 6,666,140 $ 6,780,776
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing $ 1,328,689 $ 1,203,306 $ 1,170,441 $ 1,129,073 $ 1,057,148
Savings and interest-bearing transaction accounts 3,120,803 2,974,850 2,830,829 2,756,060 2,827,787
Time deposits 1,452,733 1,245,815 1,276,001 1,306,876 1,453,575
Total deposits 5,902,225 5,423,971 5,277,271 5,192,009 5,338,510
Federal funds purchased -- -- -- -- --
Securities sold under agreements to repurchase 178,615 176,465 160,895 144,602 137,524
FHLB borrowed funds 277,477 697,957 713,553 349,110 354,935
Accrued interest payable and other liabilities 55,268 28,761 25,145 22,358 20,113
Subordinated debentures 60,826 60,826 60,826 60,826 60,826
Total liabilities 6,474,411 6,387,980 6,237,690 5,768,905 5,911,908
Stockholders' equity
Common stock 676 676 665 651 651
Capital surplus 779,856 781,328 749,573 709,516 708,868
Retained earnings 248,951 226,279 203,107 182,382 158,838
Accumulated other comprehensive income (loss) 10,080 7,009 5,336 4,686 511
Total stockholders' equity 1,039,563 1,015,292 958,681 897,235 868,868
Total liabilities and stockholders' equity $ 7,513,974 $ 7,403,272 $ 7,196,371 $ 6,666,140 $ 6,780,776
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) 2015 2014 2014 2014 2014 2015 2014
Interest income
Loans $ 75,487 $ 80,011 $ 75,917 $ 75,404 $ 75,013 $ 75,487 $ 75,013
Investment securities
Taxable 5,543 5,168 4,905 4,762 4,470 5,543 4,470
Tax-exempt 2,752 2,843 2,552 2,379 2,317 2,752 2,317
Deposits - other banks 91 24 20 29 24 91 24
Federal funds sold 8 15 7 12 16 8 16
Total interest income 83,881 88,061 83,401 82,586 81,840 83,881 81,840
Interest expense
Interest on deposits 3,258 3,074 3,243 3,095 3,384 3,258 3,384
Federal funds purchased 1 1 2 -- -- 1 --
FHLB borrowed funds 1,050 1,108 1,035 952 946 1,050 946
Securities sold under agreements to repurchase 172 181 186 168 182 172 182
Subordinated debentures 329 327 330 328 328 329 328
Total interest expense 4,810 4,691 4,796 4,543 4,840 4,810 4,840
Net interest income 79,071 83,370 78,605 78,043 77,000 79,071 77,000
Provision for loan losses 3,787 5,370 4,241 6,115 6,938 3,787 6,938
Net interest income after provision for loan losses 75,284 78,000 74,364 71,928 70,062 75,284 70,062
Non-interest income
Service charges on deposit accounts 5,418 6,143 6,275 6,193 5,911 5,418 5,911
Other service charges and fees 6,216 6,273 5,977 5,978 5,686 6,216 5,686
Trust fees 432 313 306 323 436 432 436
Mortgage lending income 1,932 2,341 1,901 1,801 1,513 1,932 1,513
Insurance commissions 567 977 984 934 1,416 567 1,416
Income from title services 34 60 59 53 50 34 50
Increase in cash value of life insurance 308 319 322 281 288 308 288
Dividends from FHLB, FRB, Bankers' bank & other 415 405 389 501 316 415 316
Gain on acquisitions 1,635 -- -- -- -- 1,635 --
Gain on sale of SBA loans -- -- 183 -- -- -- --
Gain (loss) on sale of premises & equipment, net 8 (97) (35) 445 9 8 9
Gain (loss) on OREO, net 493 264 529 859 539 493 539
Gain (loss) on securities, net 4 -- -- -- -- 4 --
FDIC indemnification accretion/(amortization), net (3,956) (7,439) (6,947) (6,622) (4,744) (3,956) (4,744)
Other income 1,164 652 888 793 761 1,164 761
Total non-interest income 14,670 10,211 10,831 11,539 12,181 14,670 12,181
Non-interest expense
Salaries and employee benefits 19,390 19,911 19,368 18,813 18,933 19,390 18,933
Occupancy and equipment 6,049 6,320 6,234 6,251 6,226 6,049 6,226
Data processing expense 2,419 1,842 1,801 1,793 1,793 2,419 1,793
Other operating expenses 12,855 13,076 15,414 11,763 12,405 12,855 12,405
Total non-interest expense 40,713 41,149 42,817 38,620 39,357 40,713 39,357
Income before income taxes 49,241 47,062 42,378 44,847 42,886 49,241 42,886
Income tax expense 18,122 17,136 15,007 16,418 15,549 18,122 15,549
Net income $ 31,119 $ 29,926 $ 27,371 $ 28,429 $ 27,337 $ 31,119 $ 27,337
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) 2015 2014 2014 2014 2014 2015 2014
PER SHARE DATA
Diluted earnings per common share $ 0.46 $ 0.44 $ 0.41 $ 0.43 $ 0.42 $ 0.46 $ 0.42
Diluted earnings per common share excluding intangible amortization 0.47 0.46 0.42 0.44 0.43 0.47 0.43
Basic earnings per common share 0.46 0.44 0.41 0.44 0.42 0.46 0.42
Dividends per share - common 0.125 0.100 0.100 0.075 0.075 0.125 0.075
Book value per common share 15.38 15.03 14.42 13.77 13.34 15.38 13.34
Tangible book value per common share 10.30 9.90 9.39 8.83 8.38 10.30 8.38
STOCK INFORMATION
Average common shares outstanding 67,589 67,291 66,223 65,140 65,123 67,589 65,123
Average diluted shares outstanding 67,923 67,653 66,616 65,545 65,511 67,923 65,511
End of period common shares outstanding 67,577 67,571 66,483 65,142 65,135 67,577 65,135
ANNUALIZED PERFORMANCE METRICS
Return on average assets 1.67% 1.62% 1.56% 1.70% 1.64% 1.67% 1.64%
Return on average assets excluding intangible amortization 1.79% 1.74% 1.68% 1.83% 1.77% 1.79% 1.77%
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) 3.04% 3.13% 3.08% 3.27% 3.26% 3.04% 3.26%
Return on average common equity 12.33% 11.96% 11.58% 12.96% 13.00% 12.33% 13.00%
Return on average tangible common equity excluding intangible amortization 18.99% 18.72% 18.46% 20.94% 21.48% 18.99% 21.48%
Efficiency ratio 41.41% 41.87% 45.70% 41.09% 42.07% 41.41% 42.07%
Core efficiency ratio 40.84% 40.15% 41.88% 41.56% 41.39% 40.84% 41.39%
Net interest margin - FTE 4.94% 5.26% 5.26% 5.50% 5.48% 4.94% 5.48%
Fully taxable equivalent adjustment $ 1,855 $ 1,911 $ 1,728 $ 1,624 $ 1,591 $ 1,855 $ 1,591
Total revenue 98,551 98,272 94,232 94,125 94,021 98,551 94,021
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to common shareholders $ 31,119 $ 29,926 $ 27,371 $ 28,429 $ 27,337 $ 31,119 $ 27,337
Intangible amortization after-tax 686 707 701 697 709 686 709
Earnings excluding intangible amortization $ 31,805 $ 30,633 $ 28,072 $ 29,126 $ 28,046 $ 31,805 $ 28,046
GAAP diluted earnings per share $ 0.46 $ 0.44 $ 0.41 $ 0.43 $ 0.42 $ 0.46 $ 0.42
Intangible amortization after-tax 0.01 0.02 0.01 0.01 0.01 0.01 0.01
Diluted earnings per share excluding intangible amortization $ 0.47 $ 0.46 $ 0.42 $ 0.44 $ 0.43 $ 0.47 $ 0.43
OTHER OPERATING EXPENSES
Advertising $ 779 $ 792 $ 673 $ 581 $ 522 $ 779 $ 522
Merger and acquisition expenses 1,417 1,711 3,772 106 849 1,417 849
Amortization of intangibles 1,129 1,163 1,153 1,147 1,167 1,129 1,167
Electronic banking expense 1,232 1,351 1,307 1,312 1,338 1,232 1,338
Directors' fees 295 243 236 206 227 295 227
Due from bank service charges 215 199 200 205 199 215 199
FDIC and state assessment 1,396 1,144 972 1,058 1,114 1,396 1,114
Insurance 666 685 657 582 614 666 614
Legal and accounting 447 666 510 419 417 447 417
Other professional fees 488 394 716 583 507 488 507
Operating supplies 434 473 468 515 472 434 472
Postage 309 329 323 327 352 309 352
Telephone 504 503 548 463 454 504 454
Other expense 3,544 3,423 3,879 4,259 4,173 3,544 4,173
Total other operating expenses $ 12,855 $ 13,076 $ 15,414 $ 11,763 $ 12,405 $ 12,855 $ 12,405
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(Dollars in thousands) 2015 2014 2014 2014 2014
BALANCE SHEET RATIOS
Total loans to total deposits 86.40% 93.24% 91.60% 84.67% 82.37%
Common equity to assets 13.8% 13.7% 13.3% 13.5% 12.8%
Tangible common equity to tangible assets 9.7% 9.5% 9.1% 9.1% 8.5%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period $ 52,471 $ 50,695 $ 48,248 $ 44,024 $ 39,022
Loans charged off 3,150 3,811 2,544 2,526 2,424
Recoveries of loans previously charged off 541 1,121 750 635 488
Net loans (recovered)/charged off 2,609 2,690 1,794 1,891 1,936
Provision for loan losses 2,869 4,466 4,241 6,115 6,938
Balance, end of period $ 52,731 $ 52,471 $ 50,695 $ 48,248 $ 44,024
Discount for credit losses on non-covered loans acquired 134,699 139,720 148,172 157,705 164,324
Net (recoveries) charge-offs on loans not covered by loss share to average non-covered loans 0.22% 0.23% 0.16% 0.18% 0.19%
Allowance for loan losses for non-covered loans to total non-covered loans 1.07% 1.09% 1.11% 1.17% 1.07%
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 3.70% 3.88% 4.20% 4.80% 4.86%
Covered
Balance, beginning of period $ 2,540 $ 2,149 $ 2,925 $ 4,967 $ 4,793
Loans charged off 772 858 863 1,051 --
Recoveries of loans previously charged off 265 345 87 128 174
Net loans charged off/(recovered) 507 513 776 923 (174)
Provision for loan losses forecasted outside of loss share (295) 904 -- 280 --
Provision for loan losses before benefit attributable to FDIC loss share agreements 2,057 -- -- (1,399) --
Benefit attributable to FDIC loss share agreements (844) -- -- 1,119 --
Net provision for loan losses 918 904 -- -- --
Increase (decrease) in FDIC indemnification asset 844 -- -- (1,119) --
Balance, end of period $ 3,795 $ 2,540 $ 2,149 $ 2,925 $ 4,967
Total allowance for loan losses $ 56,526 $ 55,011 $ 52,844 $ 51,173 $ 48,991
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans $ 25,354 $ 24,691 $ 22,381 $ 21,900 $ 20,697
Non-covered loans past due 90 days or more 12,160 14,871 18,644 23,081 21,981
Total non-performing non-covered loans 37,514 39,562 41,025 44,981 42,678
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 17,402 16,951 19,367 20,960 23,484
Other non-performing non-covered assets -- -- -- 10 47
Total other non-performing non-covered assets 17,402 16,951 19,367 20,970 23,531
Total non-performing non-covered assets $ 54,916 $ 56,513 $ 60,392 $ 65,951 $ 66,209
Allowance for loan losses for non-covered loans to non-performing non-covered loans 140.56% 132.63% 123.57% 107.26% 103.15%
Non-performing non-covered loans to total non-covered loans 0.76% 0.82% 0.90% 1.09% 1.03%
Non-performing non-covered assets to total non-covered assets 0.75% 0.79% 0.88% 1.04% 1.03%
Home BancShares, Inc.
Loan Information
(Unaudited)
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(Dollars in thousands) 2015 2014 2014 2014 2014
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 2,042,781 $ 1,987,890 $ 1,918,827 $ 1,733,029 $ 1,722,910
Construction/land development 733,564 700,139 660,107 603,216 566,205
Agricultural 82,985 72,211 78,243 64,409 74,775
Residential real estate loans
Residential 1-4 family 976,719 963,990 935,547 887,097 890,981
Multifamily residential 274,515 250,222 251,726 218,615 206,348
Total real estate 4,110,564 3,974,452 3,844,450 3,506,366 3,461,219
Consumer 51,852 56,720 57,821 56,197 60,735
Commercial and industrial 641,411 670,124 547,706 447,459 491,525
Agricultural 58,317 48,833 64,875 56,852 44,017
Other 67,845 67,185 68,163 66,235 69,068
Loans receivable not covered by loss share $ 4,929,989 $ 4,817,314 $ 4,583,015 $ 4,133,109 $ 4,126,564
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 58,251 $ 93,979 $ 99,518 $ 107,171 $ 113,593
Construction/land development 25,495 39,946 42,713 44,763 45,381
Agricultural 875 943 1,039 1,145 1,184
Residential real estate loans
Residential 1-4 family 76,758 87,309 90,088 91,706 92,918
Multifamily residential 1,421 8,617 8,263 10,002 10,043
Total real estate 162,800 230,794 241,621 254,787 263,119
Consumer 17 16 22 20 16
Commercial and industrial 5,887 8,651 8,295 7,368 6,440
Agricultural -- -- -- -- --
Other 756 727 1,032 982 1,066
Loans receivable covered by loss share $ 169,460 $ 240,188 $ 250,970 $ 263,157 $ 270,641
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
March 31, 2015 December 31, 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 $ 151,693 $ 91 0.24% $ 41,048 $ 24 0.23%
Federal funds sold 15,290 8 0.21% 27,792 15 0.21%
Investment securities - taxable 1,081,613 5,543 2.08% 1,076,415 5,168 1.90%
Investment securities - non-taxable - FTE 327,984 4,504 5.57% 326,873 4,650 5.64%
Loans receivable - FTE 5,068,580 75,590 6.05% 4,955,990 80,114 6.41%
Total interest-earning assets 6,645,160 85,736 5.23% 6,428,118 89,971 5.55%
Non-earning assets 896,648 917,892
Total assets $ 7,541,808 $ 7,346,010
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 3,040,876 $ 1,474 0.20% $ 2,926,471 $ 1,396 0.19%
Time deposits 1,335,984 1,784 0.54% 1,272,433 1,678 0.52%
Total interest-bearing deposits 4,376,860 3,258 0.30% 4,198,904 3,074 0.29%
Federal funds purchased 1,125 1 0.36% 824 1 0.48%
Securities sold under agreement to repurchase 179,561 172 0.39% 170,192 181 0.42%
FHLB borrowed funds 639,251 1,050 0.67% 695,085 1,108 0.63%
Subordinated debentures 60,826 329 2.19% 60,826 327 2.13%
Total interest-bearing liabilities 5,257,623 4,810 0.37% 5,125,831 4,691 0.36%
Non-interest bearing liabilities
Non-interest bearing deposits 1,227,323 1,200,726
Other liabilities 33,381 26,892
Total liabilities 6,518,327 6,353,449
Shareholders' equity 1,023,481 992,561
Total liabilities and shareholders' equity $ 7,541,808 $ 7,346,010
Net interest spread 4.86% 5.19%
Net interest income and margin - FTE $ 80,926 4.94% $ 85,280 5.26%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
March 31, 2015 March 31, 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 $ 151,693 $ 91 0.24% $ 63,018 $ 24 0.15%
Federal funds sold 15,290 8 0.21% 31,482 16 0.21%
Investment securities - taxable 1,081,613 5,543 2.08% 1,005,313 4,470 1.80%
Investment securities - non-taxable - FTE 327,984 4,504 5.57% 286,328 3,789 5.37%
Loans receivable - FTE 5,068,580 75,590 6.05% 4,427,994 75,132 6.88%
Total interest-earning assets 6,645,160 85,736 5.23% 5,814,135 83,431 5.82%
Non-earning assets 896,648 952,470
Total assets $ 7,541,808 $ 6,766,605
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 3,040,876 $��1,474 0.20% $ 2,785,216 $ 1,279 0.19%
Time deposits 1,335,984 1,784 0.54% 1,528,079 2,105 0.56%
Total interest-bearing deposits 4,376,860 3,258 0.30% 4,313,295 3,384 0.32%
Federal funds purchased 1,125 1 0.36% 508 -- 0.00%
Securities sold under agreement to repurchase 179,561 172 0.39% 149,352 182 0.49%
FHLB borrowed funds 639,251 1,050 0.67% 377,326 946 1.02%
Subordinated debentures 60,826 329 2.19% 60,826 328 2.19%
Total interest-bearing liabilities 5,257,623 4,810 0.37% 4,901,307 4,840 0.40%
Non-interest bearing liabilities
Non-interest bearing deposits 1,227,323 1,003,495
Other liabilities 33,381 8,825
Total liabilities 6,518,327 5,913,627
Shareholders' equity 1,023,481 852,978
Total liabilities and shareholders' equity $ 7,541,808 $ 6,766,605
Net interest spread 4.86% 5.42%
Net interest income and margin - FTE $ 80,926 4.94% $ 78,591 5.48%

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

Source:Home BancShares, Inc.

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