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Home BancShares, Inc. Announces a 30.6% Increase in Third Quarter Earnings, $350.8 Million of Quarterly Organic Loan Growth and a 39% Efficiency Ratio

CONWAY, Ark., Oct. 15, 2015 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ:HOMB), parent company of Centennial Bank, today announced a 30.6% increase in quarterly profit to $35.7 million, or $0.52 diluted earnings per share, for the third quarter of 2015 compared to $27.4 million, or $0.41 diluted earnings per share, for the same quarter in 2014. Excluding the $474,000 of merger expenses associated with the recently completed acquisition of Florida Business BancGroup, Inc., diluted earnings per share for the third quarter of 2015 was $0.53 per share. The Company also announced $350.8 million in quarterly organic non-covered loan growth during the third quarter of 2015 and a core efficiency ratio of 39.30%.

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 2015 was $0.53 compared to $0.42 diluted earnings per share excluding intangible amortization for the same period in 2014.

"In the last six months, there has been a $906.1 million increase in our total loan portfolio," said John Allison, Chairman. "By maintaining a strong capital position, Home BancShares was adequately prepared to support loan growth when the opportunities presented themselves. We will continue seeking growth opportunities in areas within and surrounding our existing footprint while supporting additional loan growth in our legacy organization so we can enhance the franchise value of HOMB and maximize returns to our shareholders."

Tracy French, Centennial Bank President and Chief Executive Officer, added, "We are pleased with the third quarter's strong financial results and another active quarter of loan growth. We are busy maintaining this growth momentum with our recently closed acquisition of Bay Cities on October 1, 2015, which is due to have its systems conversion on November 6, 2015."

"In the last several quarters our Chairman has made it known that his goal for us was to reach a 39.99% core efficiency ratio," said Donna Townsell, Centennial Bank Vice President of Corporate Efficiencies. "Since we started tracking the core efficiency in 2008, we have dropped from 59.25% to 39.30% while acquiring fifteen banks. This group of bankers worked hard to get us there and know it will be hard work to stay there, but measuring revenue versus expense has become part of the culture at Home BancShares."

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 2015 impairment testing, several non-loss share pools were determined to have a material projected credit improvement. This projected credit improvement offset by the expected decline in accretion income from the other purchase accounting loans, resulted in a net improvement of $2.1 million of recognized accretion income when compared to the second quarter of 2015. Consequently, yields on loans and net interest margin for the quarter just ended are slightly increased when compared to the second quarter of 2015.

Net interest income for the third quarter of 2015 increased 15.9% to $91.1 million from $78.6 million during the third quarter of 2014. For the third quarter of 2015, the effective yield on non-covered loans and covered loans was 5.77% and 19.04%, respectively. Net interest margin, on a fully taxable equivalent basis, was 5.03% for the quarter just ended.

During the third quarter of 2015, the Company recorded a provision for loan loss of $7.1 million compared to $4.2 million in the third quarter of 2014. This expected increase of $2.9 million is primarily a reflection of the organic loan growth generated during 2015.

The Company reported $16.5 million of non-interest income for the third quarter of 2015, compared to $10.8 million for the third quarter of 2014. The most important components of the third quarter non-interest income were $6.6 million from other service charges and fees, $6.3 million from service charges on deposits accounts, $3.1 million from mortgage lending income, $993,000 from other income, $548,000 from insurance commissions, and $398,000 from trust fees offset by the $2.0 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 $5.0 million decline of FDIC indemnification amortization from the third quarter of 2014 to the third quarter of 2015.

Non-interest expense for the third quarter of 2015 was $44.6 million compared to $42.8 million for the third quarter of 2014. This increase is primarily associated with the establishment of the Centennial Commercial Finance Group (Centennial CFG) in New York City during the second quarter of 2015. For the third quarter of 2015, our core efficiency ratio was 39.30% which is improved from the 41.88% reported for third quarter of 2014.

Financial Condition

Total non-covered loans were $5.90 billion at September 30, 2015 compared to $4.82 billion at December 31, 2014. Total covered loans were $105.4 million at September 30, 2015 compared to $240.2 million at December 31, 2014. Total deposits were $5.95 billion at September 30, 2015 compared to $5.42 billion at December 31, 2014. Total assets were $8.52 billion at September 30, 2015 compared to $7.40 billion at December 31, 2014.

Since the second quarter of 2015, non-covered loans increased $401.1 million. During the third 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 Coastal and Bayside concluded. As a result, $50.3 million of these loans including their associated discounts previously classified as covered loans have migrated to non-covered loans status. As a result, the Company produced approximately $350.8 million of organic non-covered loan growth since June 30, 2015, of which $169.5 million is associated with loan originations in the legacy footprint with the remaining $181.3 million being associated with Centennial CFG.

Non-performing non-covered loans were $48.8 million as of September 30, 2015, of which $29.4 million, $18.4 million and $985,000 were located in Arkansas, Florida and Alabama, respectively. Non-performing non-covered loans as a percent of total non-covered loans were 0.83% as of September 30, 2015 compared to 0.82% as of December 31, 2014. Non-performing non-covered assets were $67.0 million as of September 30, 2015, of which $41.4 million, $24.7 million and $985,000 were located in Arkansas, Florida and Alabama, respectively. Non-performing non-covered assets as a percent of total non-covered assets were 0.80% as of September 30, 2015 compared to 0.79% as of December 31, 2014.

The Company's allowance for loan losses for non-covered loans was $60.6 million at September 30, 2015, or 1.03% of total non-covered loans, compared to $52.5 million, or 1.09% of total non-covered loans, at December 31, 2014. As of September 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 3.23% 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 September 30, 2015 and December 31, 2014, the Company's allowance for loan losses for non-covered loans was 124% and 133% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $1.09 billion at September 30, 2015 compared to $1.02 billion at December 31, 2014, an increase of $76.0 million. Book value per common share was $16.05 at September 30, 2015 compared to $15.03 at December 31, 2014. Tangible book value per common share was $11.03 at September 30, 2015 compared to $9.90 at December 31, 2014 for an annualized increase of 15.3%.

Branches

In an effort to achieve efficiencies primarily from the acquisitions, the Company closed two Arkansas, one Alabama and two Florida locations during the third quarter of 2015 and has plans to close one Arkansas and three Florida locations during the fourth quarter of 2015. The Company currently has 80 branches in Arkansas, 58 branches in Florida, 6 branches in Alabama and 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, October 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: 10072538, which will be available until October 22, 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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 filed with the SEC on August 6, 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 branch locations in Arkansas, Florida, South Alabama and 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)
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
(In thousands) 2015 2015 2015 2014 2014
ASSETS
Cash and due from banks $ 120,262 $ 116,682 $ 115,448 $ 105,438 $ 109,067
Interest-bearing deposits with other banks 108,394 87,729 82,123 7,090 28,416
Cash and cash equivalents 228,656 204,411 197,571 112,528 137,483
Federal funds sold -- -- 6,100 250 44,275
Investment securities - available-for-sale 1,141,405 1,080,000 1,069,745 1,067,287 1,067,617
Investment securities - held-to-maturity 324,949 336,993 344,518 356,790 296,036
Loans receivable not covered by loss share 5,900,175 5,499,028 4,929,989 4,817,314 4,583,015
Loans receivable covered by FDIC loss share 105,414 159,891 169,460 240,188 250,970
Allowance for loan losses (63,659) (60,258) (56,526) (55,011) (52,844)
Loans receivable, net 5,941,930 5,598,661 5,042,923 5,002,491 4,781,141
Bank premises and equipment, net 205,505 209,425 209,326 206,912 211,726
Foreclosed assets held for sale not covered by loss share 18,204 16,539 17,402 16,951 19,367
Foreclosed assets held for sale covered by FDIC loss share 2,612 4,472 6,309 7,871 13,513
FDIC indemnification asset 11,290 15,874 19,435 28,409 42,104
Cash value of life insurance 75,281 75,015 74,722 74,444 70,913
Accrued interest receivable 26,977 24,447 23,542 24,075 23,366
Deferred tax asset, net 63,075 62,088 59,594 65,227 68,070
Goodwill 322,728 322,728 322,728 325,423 313,320
Core deposit and other intangibles 18,828 19,816 20,916 20,925 21,004
Other assets 134,113 103,913 99,143 93,689 86,436
Total assets $ 8,515,553 $ 8,074,382 $ 7,513,974 $ 7,403,272 $ 7,196,371
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing $ 1,409,949 $ 1,406,051 $ 1,328,689 $ 1,203,306 $ 1,170,441
Savings and interest-bearing transaction accounts 3,230,722 3,099,522 3,120,803 2,974,850 2,830,829
Time deposits 1,312,343 1,372,463 1,452,733 1,245,815 1,276,001
Total deposits 5,953,014 5,878,036 5,902,225 5,423,971 5,277,271
Federal funds purchased -- -- -- -- --
Securities sold under agreements to repurchase 134,142 150,746 178,615 176,465 160,895
FHLB borrowed funds 1,216,152 866,907 277,477 697,957 713,553
Accrued interest payable and other liabilities 60,141 56,166 55,268 28,761 25,145
Subordinated debentures 60,826 60,826 60,826 60,826 60,826
Total liabilities 7,424,275 7,012,681 6,474,411 6,387,980 6,237,690
Stockholders' equity
Common stock 680 677 676 676 665
Capital surplus 782,500 780,731 779,856 781,328 749,573
Retained earnings 299,984 274,409 248,951 226,279 203,107
Accumulated other comprehensive income 8,114 5,884 10,080 7,009 5,336
Total stockholders' equity 1,091,278 1,061,701 1,039,563 1,015,292 958,681
Total liabilities and stockholders' equity $ 8,515,553 $ 8,074,382 $ 7,513,974 $ 7,403,272 $ 7,196,371
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended Nine Months Ended
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Sep. 30, Sep. 30,
(In thousands) 2015 2015 2015 2014 2014 2015 2014
Interest income
Loans $ 88,671 $ 82,360 $ 75,487 $ 80,011 $ 75,917 $ 246,518 $ 226,334
Investment securities
Taxable 5,157 5,130 5,543 5,168 4,905 15,830 14,137
Tax-exempt 2,789 2,774 2,752 2,843 2,552 8,315 7,248
Deposits - other banks 32 44 91 24 20 167 73
Federal funds sold 4 3 8 15 7 15 35
Total interest income 96,653 90,311 83,881 88,061 83,401 270,845 247,827
Interest expense
Interest on deposits 3,045 3,311 3,258 3,074 3,243 9,614 9,722
Federal funds purchased 1 1 1 1 2 3 2
FHLB borrowed funds 2,030 1,053 1,050 1,108 1,035 4,133 2,933
Securities sold under agreements to repurchase 146 163 172 181 186 481 536
Subordinated debentures 340 334 329 327 330 1,003 986
Total interest expense 5,562 4,862 4,810 4,691 4,796 15,234 14,179
Net interest income 91,091 85,449 79,071 83,370 78,605 255,611 233,648
Provision for loan losses 7,106 5,381 3,787 5,370 4,241 16,274 17,294
Net interest income after provision for loan losses 83,985 80,068 75,284 78,000 74,364 239,337 216,354
Non-interest income
Service charges on deposit accounts 6,250 6,056 5,418 6,143 6,275 17,724 18,379
Other service charges and fees 6,644 6,499 6,216 6,273 5,977 19,359 17,641
Trust fees 398 1,186 432 313 306 2,016 1,065
Mortgage lending income 3,132 2,955 1,932 2,341 1,901 8,019 5,215
Insurance commissions 548 640 567 977 984 1,755 3,334
Income from title services 28 36 34 60 59 98 162
Increase in cash value of life insurance 268 295 308 319 322 871 891
Dividends from FHLB, FRB, Bankers' bank & other 433 419 415 405 389 1,267 1,206
Gain on acquisitions -- -- 1,635 -- -- 1,635 --
Gain on sale of SBA loans 151 -- -- -- 183 151 183
Gain (loss) on sale of premises & equipment, net (266) 21 8 (97) (35) (237) 419
Gain (loss) on OREO, net (40) (263) 493 264 529 190 1,927
Gain (loss) on securities, net -- -- 4 -- -- 4 --
FDIC indemnification accretion/(amortization), net (1,994) (2,202) (3,956) (7,439) (6,947) (8,152) (18,313)
Other income 993 1,385 1,164 652 888 3,542 2,442
Total non-interest income 16,545 17,027 14,670 10,211 10,831 48,242 34,551
Non-interest expense
Salaries and employee benefits 22,225 22,056 19,390 19,911 19,368 63,671 57,114
Occupancy and equipment 6,540 6,678 6,049 6,320 6,234 19,267 18,711
Data processing expense 2,619 3,063 2,419 1,842 1,801 8,101 5,387
Other operating expenses 13,209 11,453 12,855 13,076 15,414 37,517 39,582
Total non-interest expense 44,593 43,250 40,713 41,149 42,817 128,556 120,794
Income before income taxes 55,937 53,845 49,241 47,062 42,378 159,023 130,111
Income tax expense 20,196 19,939 18,122 17,136 15,007 58,257 46,974
Net income $ 35,741 $ 33,906 $ 31,119 $ 29,926 $ 27,371 $ 100,766 $ 83,137
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) 2015 2015 2015 2014 2014 2015 2014
PER SHARE DATA
Diluted earnings per common share $ 0.52 $ 0.50 $ 0.46 $ 0.44 $ 0.41 $ 1.48 $ 1.26
Diluted earnings per common share excluding merger expenses 0.53 0.50 0.47 0.46 0.45 1.50 1.31
Diluted earnings per common share excluding intangible amortization 0.53 0.51 0.47 0.46 0.42 1.51 1.29
Basic earnings per common share 0.53 0.50 0.46 0.44 0.41 1.49 1.27
Dividends per share - common 0.150 0.125 0.125 0.100 0.100 0.400 0.250
Book value per common share 16.05 15.67 15.38 15.03 14.42 16.05 14.42
Tangible book value per common share 11.03 10.61 10.30 9.90 9.39 11.03 9.39
STOCK INFORMATION
Average common shares outstanding 67,869 67,632 67,589 67,291 66,223 67,698 65,499
Average diluted shares outstanding 68,081 67,915 67,923 67,653 66,616 67,971 65,889
End of period common shares outstanding 68,000 67,774 67,577 67,571 66,483 68,000 66,483
ANNUALIZED PERFORMANCE METRICS
Return on average assets 1.72% 1.72% 1.67% 1.62% 1.56% 1.71% 1.63%
Return on average assets excluding intangible amortization 1.83% 1.83% 1.79% 1.74% 1.68% 1.82% 1.76%
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) 3.24% 3.20% 3.04% 3.13% 3.08% 3.17% 3.20%
Return on average common equity 13.23% 12.98% 12.33% 11.96% 11.58% 12.86% 12.48%
Return on average tangible common equity excluding intangible amortization 19.76% 19.68% 18.99% 18.72% 18.46% 19.49% 20.21%
Efficiency ratio 39.79% 40.39% 41.41% 41.87% 45.70% 40.49% 42.95%
Core efficiency ratio 39.30% 40.30% 40.84% 40.15% 41.88% 40.11% 41.61%
Net interest margin - FTE 5.03% 5.00% 4.94% 5.26% 5.26% 4.99% 5.41%
Fully taxable equivalent adjustment $ 1,951 $ 1,879 $ 1,855 $ 1,911 $ 1,728 $ 5,685 $ 4,943
Total revenue 113,198 107,338 98,551 98,272 94,232 319,087 282,378
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to common shareholders $ 35,741 $ 33,906 $ 31,119 $ 29,926 $ 27,371 $ 100,766 $ 83,137
Intangible amortization after-tax 600 669 686 707 701 1,955 2,107
Earnings excluding intangible amortization $ 36,341 $ 34,575 $ 31,805 $ 30,633 $ 28,072 $ 102,721 $ 85,244
GAAP diluted earnings per share $ 0.52 $ 0.50 $ 0.46 $ 0.44 $ 0.41 $ 1.48 $ 1.26
Intangible amortization after-tax 0.01 0.01 0.01 0.02 0.01 0.03 0.03
Diluted earnings per share excluding intangible amortization $ 0.53 $ 0.51 $ 0.47 $ 0.46 $ 0.42 $ 1.51 $ 1.29
OTHER OPERATING EXPENSES
Advertising $ 906 $ 657 $ 779 $ 792 $ 673 $ 2,342 $ 1,776
Merger and acquisition expenses 474 -- 1,417 1,711 3,772 1,891 4,727
Amortization of intangibles 988 1,100 1,129 1,163 1,153 3,217 3,467
Electronic banking expense 1,352 1,299 1,232 1,351 1,307 3,883 3,957
Directors' fees 233 281 295 243 236 809 669
Due from bank service charges 291 286 215 199 200 792 604
FDIC and state assessment 1,276 1,172 1,396 1,144 972 3,844 3,144
Insurance 617 617 666 685 657 1,900 1,853
Legal and accounting 338 706 447 666 510 1,491 1,346
Other professional fees 947 560 488 394 716 1,995 1,806
Operating supplies 464 509 434 473 468 1,407 1,455
Postage 293 295 309 329 323 897 1,002
Telephone 444 470 504 503 548 1,418 1,465
Other expense 4,586 3,501 3,544 3,423 3,879 11,631 12,311
Total other operating expenses $ 13,209 $ 11,453 $ 12,855 $ 13,076 $ 15,414 $ 37,517 $ 39,582
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
(Dollars in thousands) 2015 2015 2015 2014 2014
BALANCE SHEET RATIOS
Total loans to total deposits 100.88% 96.27% 86.40% 93.24% 91.60%
Common equity to assets 12.8% 13.1% 13.8% 13.7% 13.3%
Tangible common equity to tangible assets 9.2% 9.3% 9.7% 9.5% 9.1%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period $ 55,877 $ 52,731 $ 52,471 $ 50,695 $ 48,248
Loans charged off 3,966 3,339 3,150 3,811 2,544
Recoveries of loans previously charged off 535 1,184 541 1,121 750
Net loans (recovered)/charged off 3,431 2,155 2,609 2,690 1,794
Provision for loan losses 7,106 5,301 2,869 4,466 4,241
Reclass of provision for loan losses attributable to FDIC loss share agreements 1,029 -- -- -- --
Balance, end of period $ 60,581 $ 55,877 $ 52,731 $ 52,471 $ 50,695
Discount for credit losses on non-covered loans acquired 134,131 131,746 134,699 139,720 148,172
Net (recoveries) charge-offs on loans not covered by loss share to average non-covered loans 0.24% 0.16% 0.22% 0.23% 0.16%
Allowance for loan losses for non-covered loans to total non-covered loans 1.03% 1.02% 1.07% 1.09% 1.11%
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 3.23% 3.33% 3.70% 3.88% 4.20%
Covered
Balance, beginning of period $ 4,381 $ 3,795 $ 2,540 $ 2,149 $ 2,925
Loans charged off 251 -- 772 858 863
Recoveries of loans previously charged off (318) 186 265 345 87
Net loans charged off/(recovered) 569 (186) 507 513 776
Provision for loan losses forecasted outside of loss share 295 -- (295) 904 --
Provision for loan losses before benefit attributable to FDIC loss share agreements -- 400 2,057 -- --
Benefit attributable to FDIC loss share agreements (295) (320) (844) -- --
Net provision for loan losses -- 80 918 904 --
Reclass of provision for loan losses attributable to FDIC loss share agreements (1,029) -- -- -- --
Increase (decrease) in FDIC indemnification asset 295 320 844 -- --
Balance, end of period $ 3,078 $ 4,381 $ 3,795 $ 2,540 $ 2,149
Total allowance for loan losses $ 63,659 $ 60,258 $ 56,526 $ 55,011 $ 52,844
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans $ 37,405 $ 29,033 $ 25,354 $ 24,691 $ 22,381
Non-covered loans past due 90 days or more 11,390 10,847 12,160 14,871 18,644
Total non-performing non-covered loans 48,795 39,880 37,514 39,562 41,025
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 18,204 16,539 17,402 16,951 19,367
Other non-performing non-covered assets 14 12 -- -- --
Total other non-performing non-covered assets 18,218 16,551 17,402 16,951 19,367
Total non-performing non-covered assets $ 67,013 $ 56,431 $ 54,916 $ 56,513 $ 60,392
Allowance for loan losses for non-covered loans to non-performing non-covered loans 124.15% 140.11% 140.56% 132.63% 123.57%
Non-performing non-covered loans to total non-covered loans 0.83% 0.73% 0.76% 0.82% 0.90%
Non-performing non-covered assets to total non-covered assets 0.80% 0.71% 0.75% 0.79% 0.88%
Home BancShares, Inc.
Loan Information
(Unaudited)
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
(Dollars in thousands) 2015 2015 2015 2014 2014
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 2,655,882 $ 2,477,688 $ 2,042,781 $ 1,987,890 $ 1,918,827
Construction/land development 805,003 796,589 733,564 700,139 660,107
Agricultural 75,233 81,633 82,985 72,211 78,243
Residential real estate loans
Residential 1-4 family 1,055,504 997,952 976,719 963,990 935,547
Multifamily residential 392,483 321,593 274,515 250,222 251,726
Total real estate 4,984,105 4,675,455 4,110,564 3,974,452 3,844,450
Consumer 46,677 48,320 51,852 56,720 57,821
Commercial and industrial 749,846 658,501 641,411 670,124 547,706
Agricultural 78,217 72,766 58,317 48,833 64,875
Other 41,330 43,986 67,845 67,185 68,163
Loans receivable not covered by loss share $ 5,900,175 $ 5,499,028 $ 4,929,989 $ 4,817,314 $ 4,583,015
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 25,903 $ 54,777 $ 58,251 $ 93,979 $ 99,518
Construction/land development 7,836 24,003 25,495 39,946 42,713
Agricultural 735 848 875 943 1,039
Residential real estate loans
Residential 1-4 family 66,447 72,002 76,758 87,309 90,088
Multifamily residential 1,200 1,394 1,421 8,617 8,263
Total real estate 102,121 153,024 162,800 230,794 241,621
Consumer 10 17 17 16 22
Commercial and industrial 2,682 6,118 5,887 8,651 8,295
Agricultural -- -- -- -- --
Other 601 732 756 727 1,032
Loans receivable covered by loss share $ 105,414 $ 159,891 $ 169,460 $ 240,188 $ 250,970
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
September 30, 2015 June 30, 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 $ 78,783 $ 32 0.16% $ 84,443 $ 44 0.21%
Federal funds sold 5,293 4 0.30% 4,355 3 0.28%
Investment securities - taxable 1,129,453 5,157 1.81% 1,082,113 5,130 1.90%
Investment securities - non-taxable - FTE 326,069 4,557 5.54% 327,088 4,543 5.57%
Loans receivable - FTE 5,800,688 88,854 6.08% 5,507,405 82,470 6.01%
Total interest-earning assets 7,340,286 98,604 5.33% 7,005,404 92,190 5.28%
Non-earning assets 890,551 895,317
Total assets $ 8,230,837 $ 7,900,721
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 3,157,279 $ 1,514 0.19% $ 3,149,490 $ 1,576 0.20%
Time deposits 1,320,995 1,531 0.46% 1,418,803 1,735 0.49%
Total interest-bearing deposits 4,478,274 3,045 0.27% 4,568,293 3,311 0.29%
Federal funds purchased 1,250 1 0.32% 213 1 1.88%
Securities sold under agreement to repurchase 143,672 146 0.40% 168,314 163 0.39%
FHLB borrowed funds 1,044,369 2,030 0.77% 677,108 1,053 0.62%
Subordinated debentures 60,826 340 2.22% 60,826 334 2.20%
Total interest-bearing liabilities 5,728,391 5,562 0.39% 5,474,754 4,862 0.36%
Non-interest bearing liabilities
Non-interest bearing deposits 1,371,924 1,344,580
Other liabilities 58,729 33,622
Total liabilities 7,159,044 6,852,956
Shareholders' equity 1,071,793 1,047,765
Total liabilities and shareholders' equity $ 8,230,837 $ 7,900,721
Net interest spread 4.94% 4.92%
Net interest income and margin - FTE $ 93,042 5.03% $ 87,328 5.00%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Nine Months Ended
September 30, 2015 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 $ 104,764 $ 167 0.21% $ 52,741 $ 73 0.19%
Federal funds sold 8,276 15 0.24% 22,746 35 0.21%
Investment securities - taxable 1,097,901 15,830 1.93% 1,029,496 14,137 1.84%
Investment securities - non-taxable - FTE 327,040 13,604 5.56% 292,349 11,852 5.42%
Loans receivable - FTE 5,461,573 246,914 6.04% 4,498,643 226,674 6.74%
Total interest-earning assets 6,999,554 276,530 5.28% 5,895,975 252,771 5.73%
Non-earning assets 894,092 923,800
Total assets $ 7,893,646 $ 6,819,775
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 3,116,308 $ 4,564 0.20% $ 2,809,963 $ 3,882 0.18%
Time deposits 1,358,539 5,050 0.50% 1,407,255 5,840 0.55%
Total interest-bearing deposits 4,474,847 9,614 0.29% 4,217,218 9,722 0.31%
Federal funds purchased 863 3 0.46% 1,001 2 0.27%
Securities sold under agreement to repurchase 163,718 481 0.39% 145,348 536 0.49%
FHLB borrowed funds 788,393 4,133 0.70% 416,531 2,933 0.94%
Subordinated debentures 60,826 1,003 2.20% 60,826 986 2.17%
Total interest-bearing liabilities 5,488,647 15,234 0.37% 4,840,924 14,179 0.39%
Non-interest bearing liabilities
Non-interest bearing deposits 1,315,160 1,068,626
Other liabilities 41,982 19,642
Total liabilities 6,845,789 5,929,192
Shareholders' equity 1,047,857 890,583
Total liabilities and shareholders' equity $ 7,893,646 $ 6,819,775
Net interest spread 4.91% 5.34%
Net interest income and margin - FTE $ 261,296 4.99% $ 238,592 5.41%

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

Source:Home BancShares, Inc.