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Home BancShares, Inc. Announces Record Quarterly Earnings of $33.9 Million Plus Record Quarterly Organic Loan Growth of $279.9 Million

CONWAY, Ark., July 16, 2015 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ:HOMB), parent company of Centennial Bank, today announced a record quarterly profit of $33.9 million, or $0.50 diluted earnings per share for the second quarter of 2015 compared to $28.4 million or $0.43 diluted earnings per share for the same quarter in 2014. The Company increased its second quarter earnings by $5.5 million or 19.3% for the three months ended June 30, 2015 compared to the same period of the previous year. Additionally, the Company produced record quarterly organic non-covered loan growth of $279.9 million during the second quarter of 2015.

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 second quarter of 2015 was $0.51 compared to $0.44 diluted earnings per share excluding intangible amortization for the same period in 2014.

"I'm pleased to report the non-covered loan portfolio has increased $569.0 million since the first quarter. Excluding the acquisition of $289.1 million of national commercial real estate loans, our momentum for generating non-covered organic loan growth was great this quarter, growing non-covered loans organically by a record $279.9 million," said John Allison, Chairman. "As a result of our strong capital position, we are adequately prepared to continue entertaining strategic opportunities in areas within and surrounding our existing footprint and supporting loan growth in our legacy organization."

"For the seventeenth consecutive quarter, the second quarter of 2015 has become the most profitable quarter in the Company's history," said Randy Sims, Home BancShares, Inc. Chief Executive Officer. "Not only did the Company report an outstanding $2.8 million or 9.0% increase from our previously reported record earnings, but we also reported record results for diluted earnings per share of $0.50 per share and core efficiency ratio of 40.30%. Additionally, on July 11, 2015, we completed the systems conversion of Doral Florida and now can speed up the process of improving the financial metrics to maximize returns to our shareholders."

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 second quarter 2015 impairment testing, no pools were determined to have a material projected credit improvement. There have been no projected credit improvements since the third quarter of 2014 testing. As a result, there was only a $59,000 decline of recognized accretion yield from the first quarter of 2015 to the second quarter of 2015. Consequently, yields on loans and net interest margin for the quarter just ended are relatively comparable to the first quarter of 2015.

Net interest income for the second quarter of 2015 increased 9.5% to $85.4 million from $78.0 million during the second quarter of 2014. For the second quarter of 2015, the effective yield on non-covered loans and covered loans was 5.63% and 18.40%, respectively. Net interest margin, on a fully taxable equivalent basis, was 5.00% for the quarter just ended.

The Company experienced an $814,000 decrease in the provision for loan losses for non-covered loans during the second 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 offset by provisioning for second quarter 2015 organic loan growth. 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 $17.0 million of non-interest income for the second quarter of 2015, compared to $11.5 million for the second quarter of 2014. The most important components of the second quarter non-interest income were $6.5 million from other service charges and fees, $6.1 million from service charges on deposits accounts, $3.0 million from mortgage lending income, $1.4 million from other income, $1.2 million from trust fees (includes a $788,000 one-time receipt of trust fees), $640,000 from insurance commissions offset by the $2.2 million of net amortization on the FDIC indemnification asset.

As a result of the recognized credit improvements in prior years, the Company has been decreasing 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 $1.8 million decline of FDIC indemnification amortization from the first quarter of 2015 to the second quarter of 2015.

Non-interest expense for the second quarter of 2015 was $43.3 million compared to $38.6 million for the second quarter of 2014. This increase is primarily associated with the establishment of the Centennial Commercial Finance Group (Centennial CFG) in New York City. For the second quarter of 2015, our core efficiency ratio was 40.30% which is improved from the 41.56% reported for second quarter of 2014.

Financial Condition

Total non-covered loans were $5.50 billion at June 30, 2015 compared to $4.82 billion at December 31, 2014. Total covered loans were $159.9 million at June 30, 2015 compared to $240.2 million at December 31, 2014. Total deposits were $5.88 billion at June 30, 2015 compared to $5.42 billion at December 31, 2014. Total assets were $8.07 billion at June 30, 2015 compared to $7.40 billion at December 31, 2014.

Since the first quarter of 2015, non-covered loans increased $569.0 million. On April 1, 2015, the Company acquired a pool of national commercial real estate loans from J.C. Flowers & Co. LLC totaling approximately $289.1 million. The Company produced approximately $279.9 million of organic non-covered loan growth since March 31, 2015, of which $223.7 million is associated with loan originations in the legacy footprint with the remaining $56.2 million being associated with Centennial CFG.

Non-performing non-covered loans were $39.9 million as of June 30, 2015, of which $25.6 million, $13.6 million and $686,000 were located in Arkansas, Florida and Alabama, respectively. Non-performing non-covered loans as a percent of total non-covered loans were 0.73% as of June 30, 2015 compared to 0.82% as of December 31, 2014. Non-performing non-covered assets were $56.4 million as of June 30, 2015, of which $37.5 million, $18.2 million and $701,000 were located in Arkansas, Florida and Alabama, respectively. Non-performing non-covered assets as a percent of total non-covered assets were 0.71% as of June 30, 2015 compared to 0.79% as of December 31, 2014.

The Company's allowance for loan losses for non-covered loans was $55.9 million at June 30, 2015, or 1.02% of total non-covered loans, compared to $52.5 million, or 1.09% of total non-covered loans, at December 31, 2014. As of June 30, 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 3.33% and 3.88%, respectively. This decrease is primarily the result of the increase in non-covered loans during 2015 plus projected credit improvement on the acquired impaired loans. As of June 30, 2015 and December 31, 2014, the Company's allowance for loan losses for non-covered loans was 140% and 133% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $1.06 billion at June 30, 2015 compared to $1.02 billion at December 31, 2014, an increase of $46.4 million. Book value per common share was $15.67 at June 30, 2015 compared to $15.03 at December 31, 2014. Tangible book value per common share was $10.61 at June 30, 2015 compared to $9.90 December 31, 2014 for an annualized increase of 14.5%.

Branches

In an effort to achieve efficiencies primarily from the acquisitions prior to 2015, the Company closed one Arkansas location during the second quarter of 2015 and has plans to close two Arkansas, one Alabama and two Florida locations during the third quarter of 2015. The Company currently has 82 branches in Arkansas, 59 branches in Florida, 7 branches in Alabama and has opened 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, July 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: 10067277, which will be available until July 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 (the "SEC") on February 27, 2015, and in its Registration Statement on Form S-4 filed with the SEC on July 2, 2015.

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 opened 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)
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
(In thousands) 2015 2015 2014 2014 2014
ASSETS
Cash and due from banks $ 116,682 $ 115,448 $ 105,438 $ 109,067 $ 122,167
Interest-bearing deposits with other banks 87,729 82,123 7,090 28,416 21,385
Cash and cash equivalents 204,411 197,571 112,528 137,483 143,552
Federal funds sold -- 6,100 250 44,275 850
Investment securities - available-for-sale 1,080,000 1,069,745 1,067,287 1,067,617 1,122,803
Investment securities - held-to-maturity 336,993 344,518 356,790 296,036 205,566
Loans receivable not covered by loss share 5,499,028 4,929,989 4,817,314 4,583,015 4,133,109
Loans receivable covered by FDIC loss share 159,891 169,460 240,188 250,970 263,157
Allowance for loan losses (60,258) (56,526) (55,011) (52,844) (51,173)
Loans receivable, net 5,598,661 5,042,923 5,002,491 4,781,141 4,345,093
Bank premises and equipment, net 209,425 209,326 206,912 211,726 196,194
Foreclosed assets held for sale not covered by loss share 16,539 17,402 16,951 19,367 20,960
Foreclosed assets held for sale covered by FDIC loss share 4,472 6,309 7,871 13,513 17,196
FDIC indemnification asset 15,874 19,435 28,409 42,104 56,626
Cash value of life insurance 75,015 74,722 74,444 70,913 64,066
Accrued interest receivable 24,447 23,542 24,075 23,366 20,847
Deferred tax asset, net 62,088 59,594 65,227 68,070 73,151
Goodwill 322,728 322,728 325,423 313,320 301,736
Core deposit and other intangibles 19,816 20,916 20,925 21,004 19,984
Other assets 103,913 99,143 93,689 86,436 77,516
Total assets $ 8,074,382 $ 7,513,974 $ 7,403,272 $ 7,196,371 $ 6,666,140
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing $ 1,406,051 $ 1,328,689 $ 1,203,306 $ 1,170,441 $ 1,129,073
Savings and interest-bearing transaction accounts 3,099,522 3,120,803 2,974,850 2,830,829 2,756,060
Time deposits 1,372,463 1,452,733 1,245,815 1,276,001 1,306,876
Total deposits 5,878,036 5,902,225 5,423,971 5,277,271 5,192,009
Federal funds purchased -- -- -- -- --
Securities sold under agreements to repurchase 150,746 178,615 176,465 160,895 144,602
FHLB borrowed funds 866,907 277,477 697,957 713,553 349,110
Accrued interest payable and other liabilities 56,166 55,268 28,761 25,145 22,358
Subordinated debentures 60,826 60,826 60,826 60,826 60,826
Total liabilities 7,012,681 6,474,411 6,387,980 6,237,690 5,768,905
Stockholders' equity
Common stock 677 676 676 665 651
Capital surplus 780,731 779,856 781,328 749,573 709,516
Retained earnings 274,409 248,951 226,279 203,107 182,382
Accumulated other comprehensive income 5,884 10,080 7,009 5,336 4,686
Total stockholders' equity 1,061,701 1,039,563 1,015,292 958,681 897,235
Total liabilities and stockholders' equity $ 8,074,382 $ 7,513,974 $ 7,403,272 $ 7,196,371 $ 6,666,140
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended Six Months Ended
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Jun. 30, Jun. 30,
(In thousands) 2015 2015 2014 2014 2014 2015 2014
Interest income
Loans $ 82,360 $ 75,487 $ 80,011 $ 75,917 $ 75,404 $ 157,847 $ 150,417
Investment securities
Taxable 5,130 5,543 5,168 4,905 4,762 10,673 9,232
Tax-exempt 2,774 2,752 2,843 2,552 2,379 5,526 4,696
Deposits - other banks 44 91 24 20 29 135 53
Federal funds sold 3 8 15 7 12 11 28
Total interest income 90,311 83,881 88,061 83,401 82,586 174,192 164,426
Interest expense
Interest on deposits 3,311 3,258 3,074 3,243 3,095 6,569 6,479
Federal funds purchased 1 1 1 2 -- 2 --
FHLB borrowed funds 1,053 1,050 1,108 1,035 952 2,103 1,898
Securities sold under agreements to repurchase 163 172 181 186 168 335 350
Subordinated debentures 334 329 327 330 328 663 656
Total interest expense 4,862 4,810 4,691 4,796 4,543 9,672 9,383
Net interest income 85,449 79,071 83,370 78,605 78,043 164,520 155,043
Provision for loan losses 5,381 3,787 5,370 4,241 6,115 9,168 13,053
Net interest income after provision for loan losses 80,068 75,284 78,000 74,364 71,928 155,352 141,990
Non-interest income
Service charges on deposit accounts 6,056 5,418 6,143 6,275 6,193 11,474 12,104
Other service charges and fees 6,499 6,216 6,273 5,977 5,978 12,715 11,664
Trust fees 1,186 432 313 306 323 1,618 759
Mortgage lending income 2,955 1,932 2,341 1,901 1,801 4,887 3,314
Insurance commissions 640 567 977 984 934 1,207 2,350
Income from title services 36 34 60 59 53 70 103
Increase in cash value of life insurance 295 308 319 322 281 603 569
Dividends from FHLB, FRB, Bankers' bank & other 419 415 405 389 501 834 817
Gain on acquisitions -- 1,635 -- -- -- 1,635 --
Gain on sale of SBA loans -- -- -- 183 -- -- --
Gain (loss) on sale of premises & equipment, net 21 8 (97) (35) 445 29 454
Gain (loss) on OREO, net (263) 493 264 529 859 230 1,398
Gain (loss) on securities, net -- 4 -- -- -- 4 --
FDIC indemnification accretion/(amortization), net (2,202) (3,956) (7,439) (6,947) (6,622) (6,158) (11,366)
Other income 1,385 1,164 652 888 793 2,549 1,554
Total non-interest income 17,027 14,670 10,211 10,831 11,539 31,697 23,720
Non-interest expense
Salaries and employee benefits 22,056 19,390 19,911 19,368 18,813 41,446 37,746
Occupancy and equipment 6,678 6,049 6,320 6,234 6,251 12,727 12,477
Data processing expense 3,063 2,419 1,842 1,801 1,793 5,482 3,586
Other operating expenses 11,453 12,855 13,076 15,414 11,763 24,308 24,168
Total non-interest expense 43,250 40,713 41,149 42,817 38,620 83,963 77,977
Income before income taxes 53,845 49,241 47,062 42,378 44,847 103,086 87,733
Income tax expense 19,939 18,122 17,136 15,007 16,418 38,061 31,967
Net income $ 33,906 $ 31,119 $ 29,926 $ 27,371 $ 28,429 $ 65,025 $ 55,766
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter Ended Six Months Ended
(Dollars and shares in thousands, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Jun. 30, Jun. 30,
except per share data) 2015 2015 2014 2014 2014 2015 2014
PER SHARE DATA
Diluted earnings per common share $ 0.50 $ 0.46 $ 0.44 $ 0.41 $ 0.43 $ 0.96 $ 0.85
Diluted earnings per common share excluding intangible amortization 0.51 0.47 0.46 0.42 0.44 0.98 0.87
Basic earnings per common share 0.50 0.46 0.44 0.41 0.44 0.96 0.86
Dividends per share - common 0.125 0.125 0.100 0.100 0.075 0.250 0.150
Book value per common share 15.67 15.38 15.03 14.42 13.77 15.67 13.77
Tangible book value per common share 10.61 10.30 9.90 9.39 8.83 10.61 8.83
STOCK INFORMATION
Average common shares outstanding 67,632 67,589 67,291 66,223 65,140 67,611 65,131
Average diluted shares outstanding 67,915 67,923 67,653 66,616 65,545 67,912 65,523
End of period common shares outstanding 67,774 67,577 67,571 66,483 65,142 67,774 65,142
ANNUALIZED PERFORMANCE METRICS
Return on average assets 1.72% 1.67% 1.62% 1.56% 1.70% 1.70% 1.67%
Return on average assets excluding intangible amortization 1.83% 1.79% 1.74% 1.68% 1.83% 1.81% 1.80%
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) 3.20% 3.04% 3.13% 3.08% 3.27% 3.12% 3.27%
Return on average common equity 12.98% 12.33% 11.96% 11.58% 12.96% 12.66% 12.98%
Return on average tangible common equity excluding intangible amortization 19.68% 18.99% 18.72% 18.46% 20.94% 19.34% 21.20%
Efficiency ratio 40.39% 41.41% 41.87% 45.70% 41.09% 40.88% 41.58%
Core efficiency ratio 40.30% 40.84% 40.15% 41.88% 41.56% 40.55% 41.48%
Net interest margin - FTE 5.00% 4.94% 5.26% 5.26% 5.50% 4.97% 5.49%
Fully taxable equivalent adjustment $ 1,879 $ 1,855 $ 1,911 $ 1,728 $ 1,624 $ 3,734 $ 3,215
Total revenue 107,338 98,551 98,272 94,232 94,125 205,889 188,146
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to common shareholders $ 33,906 $ 31,119 $ 29,926 $ 27,371 $ 28,429 $ 65,025 $ 55,766
Intangible amortization after-tax 669 686 707 701 697 1,355 1,406
Earnings excluding intangible amortization $ 34,575 $ 31,805 $ 30,633 $ 28,072 $ 29,126 $ 66,380 $ 57,172
GAAP diluted earnings per share $ 0.50 $ 0.46 $ 0.44 $ 0.41 $ 0.43 $ 0.96 $ 0.85
Intangible amortization after-tax 0.01 0.01 0.02 0.01 0.01 0.02 0.02
Diluted earnings per share excluding intangible amortization $ 0.51 $ 0.47 $ 0.46 $ 0.42 $ 0.44 $ 0.98 $ 0.87
OTHER OPERATING EXPENSES
Advertising $ 657 $ 779 $ 792 $ 673 $ 581 $ 1,436 $ 1,103
Merger and acquisition expenses -- 1,417 1,711 3,772 106 1,417 955
Amortization of intangibles 1,100 1,129 1,163 1,153 1,147 2,229 2,314
Electronic banking expense 1,299 1,232 1,351 1,307 1,312 2,531 2,650
Directors' fees 281 295 243 236 206 576 433
Due from bank service charges 286 215 199 200 205 501 404
FDIC and state assessment 1,172 1,396 1,144 972 1,058 2,568 2,172
Insurance 617 666 685 657 582 1,283 1,196
Legal and accounting 706 447 666 510 419 1,153 836
Other professional fees 560 488 394 716 583 1,048 1,090
Operating supplies 509 434 473 468 515 943 987
Postage 295 309 329 323 327 604 679
Telephone 470 504 503 548 463 974 917
Other expense 3,501 3,544 3,423 3,879 4,259 7,045 8,432
Total other operating expenses $ 11,453 $ 12,855 $ 13,076 $ 15,414 $ 11,763 $ 24,308 $ 24,168
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
(Dollars in thousands) 2015 2015 2014 2014 2014
BALANCE SHEET RATIOS
Total loans to total deposits 96.27% 86.40% 93.24% 91.60% 84.67%
Common equity to assets 13.1% 13.8% 13.7% 13.3% 13.5%
Tangible common equity to tangible assets 9.3% 9.7% 9.5% 9.1% 9.1%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period $ 52,731 $ 52,471 $ 50,695 $ 48,248 $ 44,024
Loans charged off 3,339 3,150 3,811 2,544 2,526
Recoveries of loans previously charged off 1,184 541 1,121 750 635
Net loans (recovered)/charged off 2,155 2,609 2,690 1,794 1,891
Provision for loan losses 5,301 2,869 4,466 4,241 6,115
Balance, end of period $ 55,877 $ 52,731 $ 52,471 $ 50,695 $ 48,248
Discount for credit losses on non-covered loans acquired 131,746 134,699 139,720 148,172 157,705
Net (recoveries) charge-offs on loans not covered by loss share to average non-covered loans 0.16% 0.22% 0.23% 0.16% 0.18%
Allowance for loan losses for non-covered loans to total non-covered loans 1.02% 1.07% 1.09% 1.11% 1.17%
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 3.33% 3.70% 3.88% 4.20% 4.80%
Covered
Balance, beginning of period $ 3,795 $ 2,540 $ 2,149 $ 2,925 $ 4,967
Loans charged off -- 772 858 863 1,051
Recoveries of loans previously charged off 186 265 345 87 128
Net loans charged off/(recovered) (186) 507 513 776 923
Provision for loan losses forecasted outside of loss share 1 (295) 904 -- 280
Provision for loan losses before benefit attributable to FDIC loss share agreements 399 2,057 -- -- (1,399)
Benefit attributable to FDIC loss share agreements (320) (844) -- -- 1,119
Net provision for loan losses 80 918 904 -- --
Increase (decrease) in FDIC indemnificaton asset 320 844 -- -- (1,119)
Balance, end of period $ 4,381 $ 3,795 $ 2,540 $ 2,149 $ 2,925
Total allowance for loan losses $ 60,258 $ 56,526 $ 55,011 $ 52,844 $ 51,173
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans $ 29,033 $ 25,354 $ 24,691 $ 22,381 $ 21,900
Non-covered loans past due 90 days or more 10,847 12,160 14,871 18,644 23,081
Total non-performing non-covered loans 39,880 37,514 39,562 41,025 44,981
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 16,539 17,402 16,951 19,367 20,960
Other non-performing non-covered assets 12 -- -- -- 10
Total other non-performing non-covered assets 16,551 17,402 16,951 19,367 20,970
Total non-performing non-covered assets $ 56,431 $ 54,916 $ 56,513 $ 60,392 $ 65,951
Allowance for loan losses for non-covered loans to non-performing non-covered loans 140.11% 140.56% 132.63% 123.57% 107.26%
Non-performing non-covered loans to total non-covered loans 0.73% 0.76% 0.82% 0.90% 1.09%
Non-performing non-covered assets to total non-covered assets 0.71% 0.75% 0.79% 0.88% 1.04%
Home BancShares, Inc.
Loan Information
(Unaudited)
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
(Dollars in thousands) 2015 2015 2014 2014 2014
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 2,477,688 $ 2,042,781 $ 1,987,890 $ 1,918,827 $ 1,733,029
Construction/land development 796,589 733,564 700,139 660,107 603,216
Agricultural 81,633 82,985 72,211 78,243 64,409
Residential real estate loans
Residential 1-4 family 997,952 976,719 963,990 935,547 887,097
Multifamily residential 321,593 274,515 250,222 251,726 218,615
Total real estate 4,675,455 4,110,564 3,974,452 3,844,450 3,506,366
Consumer 48,320 51,852 56,720 57,821 56,197
Commercial and industrial 658,501 641,411 670,124 547,706 447,459
Agricultural 72,766 58,317 48,833 64,875 56,852
Other 43,986 67,845 67,185 68,163 66,235
Loans receivable not covered by loss share $ 5,499,028 $ 4,929,989 $ 4,817,314 $ 4,583,015 $ 4,133,109
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 54,777 $ 58,251 $ 93,979 $ 99,518 $ 107,171
Construction/land development 24,003 25,495 39,946 42,713 44,763
Agricultural 848 875 943 1,039 1,145
Residential real estate loans
Residential 1-4 family 72,002 76,758 87,309 90,088 91,706
Multifamily residential 1,394 1,421 8,617 8,263 10,002
Total real estate 153,024 162,800 230,794 241,621 254,787
Consumer 17 17 16 22 20
Commercial and industrial 6,118 5,887 8,651 8,295 7,368
Agricultural -- -- -- -- --
Other 732 756 727 1,032 982
Loans receivable covered by loss share $ 159,891 $ 169,460 $ 240,188 $ 250,970 $ 263,157
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
June 30, 2015 March 31, 2015
Average Income/ Yield/ Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate Balance Expense Rate
ASSETS
Earning assets
Interest-bearing balances due from banks $ 84,443 $ 44 0.21% $ 151,693 $ 91 0.24%
Federal funds sold 4,355 3 0.28% 15,290 8 0.21%
Investment securities - taxable 1,082,113 5,130 1.90% 1,081,613 5,543 2.08%
Investment securities - non-taxable - FTE 327,088 4,543 5.57% 327,984 4,504 5.57%
Loans receivable - FTE 5,507,405 82,470 6.01% 5,068,580 75,590 6.05%
Total interest-earning assets 7,005,404 92,190 5.28% 6,645,160 85,736 5.23%
Non-earning assets 895,317 896,648
Total assets $ 7,900,721 $ 7,541,808
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 3,149,490 $ 1,576 0.20% $ 3,040,876 $ 1,474 0.20%
Time deposits 1,418,803 1,735 0.49% 1,335,984 1,784 0.54%
Total interest-bearing deposits 4,568,293 3,311 0.29% 4,376,860 3,258 0.30%
Federal funds purchased 213 1 1.88% 1,125 1 0.36%
Securities sold under agreement to repurchase 168,314 163 0.39% 179,561 172 0.39%
FHLB borrowed funds 677,108 1,053 0.62% 639,251 1,050 0.67%
Subordinated debentures 60,826 334 2.20% 60,826 329 2.19%
Total interest-bearing liabilities 5,474,754 4,862 0.36% 5,257,623 4,810 0.37%
Non-interest bearing liabilities
Non-interest bearing deposits 1,344,580 1,227,323
Other liabilities 33,622 33,381
Total liabilities 6,852,956 6,518,327
Shareholders' equity 1,047,765 1,023,481
Total liabilities and shareholders' equity $ 7,900,721 $ 7,541,808
Net interest spread 4.92% 4.86%
Net interest income and margin - FTE $ 87,328 5.00% $ 80,926 4.94%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Six Months Ended
June 30, 2015 June 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 $ 117,883 $ 135 0.23% $ 58,849 $ 53 0.18%
Federal funds sold 9,792 11 0.23% 27,393 28 0.21%
Investment securities - taxable 1,081,864 10,673 1.99% 1,021,752 9,232 1.82%
Investment securities - non-taxable - FTE 327,534 9,047 5.57% 287,007 7,678 5.39%
Loans receivable - FTE 5,289,205 158,060 6.03% 4,415,814 150,650 6.88%
Total interest-earning assets 6,826,278 177,926 5.26% 5,810,815 167,641 5.82%
Non-earning assets 895,978 933,324
Total assets $ 7,722,256 $ 6,744,139
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 3,095,483 $ 3,050 0.20% $ 2,797,102 $ 2,506 0.18%
Time deposits 1,377,623 3,519 0.52% 1,453,755 3,973 0.55%
Total interest-bearing deposits 4,473,106 6,569 0.30% 4,250,857 6,479 0.31%
Federal funds purchased 666 2 0.61% 308 -- 0.00%
Securities sold under agreement to repurchase 173,906 335 0.39% 142,862 350 0.49%
FHLB borrowed funds 658,284 2,103 0.64% 376,823 1,898 1.02%
Subordinated debentures 60,826 663 2.20% 60,826 656 2.17%
Total interest-bearing liabilities 5,366,788 9,672 0.36% 4,831,676 9,383 0.39%
Non-interest bearing liabilities
Non-interest bearing deposits 1,286,275 1,029,004
Other liabilities 33,502 16,873
Total liabilities 6,686,565 5,877,553
Shareholders' equity 1,035,691 866,586
Total liabilities and shareholders' equity $ 7,722,256 $ 6,744,139
Net interest spread 4.90% 5.43%
Net interest income and margin - FTE $ 168,254 4.97% $ 158,258 5.49%

CONTACT: FOR MORE INFORMATION CONTACT: Jennifer C. Floyd Chief Accounting Officer & Investor Relations Officer Home BancShares, Inc. (501) 339-2929

Source:Home BancShares, Inc.