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Home BancShares, Inc. Announces 22.2% Increase in 2015 Earnings

CONWAY, Ark., Jan. 21, 2016 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ:HOMB), parent company of Centennial Bank, today announced net income for the year ended December 31, 2015 of $138.2 million compared to $113.1 million for the year ended 2014 for a 22.2% increase. Diluted earnings per share for the year ended 2015 was $2.02 per share compared to $1.70 per share for 2014. Excluding the $4.8 million of 2015 merger expenses associated with the 2015 acquisitions, diluted earnings per share for the year ended 2015 was $2.06 per share.

For the fourth quarter of 2015, the Company recorded a 25.1% increase in quarterly profit to $37.4 million, for the fourth quarter of 2015 compared to $29.9 million, for the same quarter in 2014. Excluding the $2.9 million of merger expenses associated with the acquisition of Florida Business BancGroup, Inc. (“FBBI”), diluted earnings per share for the fourth quarter of 2015 was $0.56 per share. The Company also announced $232.3 million in quarterly organic loan growth during the fourth quarter of 2015 and a core efficiency ratio of 37.86%.

“I am pleased to report the Company’s outstanding quarterly and annual earnings and financial metrics,” said John Allison, Chairman. “This past year, our team was diligent and motivated to reach and, in some cases, exceed our financial goals. We improved the efficiency ratio to less than 39.99%, executed three acquisition opportunities, and grew organic loans by $881.6 million. We intend to keep up this momentum in 2016 by continuing to improve the Company's earnings and financial metrics.”

“We are pleased to report the fourth quarter of 2015 as the nineteenth consecutive quarter reporting the most profitable quarter in the Company's history,” said Randy Sims, Home BancShares, Inc. Chief Executive Officer. “For the quarter, the Company reported outstanding results for diluted earnings per share excluding merger expenses of $0.56 per share and a core efficiency ratio of 37.86%.”

“During the fourth quarter, we closed the acquisition and completed the systems conversion of FBBI and are now in a position to accelerate the process of improving the Company’s results to maximize shareholder return,” added Tracy French, Centennial Bank President and Chief Executive Officer. “As a result of our strong capital position, we are well-positioned during the coming year to continue seeking opportunities to enter new markets or expand our reach in our existing footprints while supporting additional loan growth in our legacy organization.”

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 2015 impairment testing, no pools were determined to have a material projected credit improvement. However, during the fourth quarter of 2015 one of our borrowers from the Liberty transaction paid off a $26.1 million credit relationship, which resulted in approximately $650,000 of accretion income to be recognized in the fourth quarter. As a result, there was a $116,000 increase in recognized accretion yield to $13.2 million during the fourth quarter of 2015 when compared to $13.1 million during the third quarter of 2015.

Net interest income for the fourth quarter of 2015 increased 20.1% to $100.1 million from $83.4 million during the fourth quarter of 2014. For the fourth quarter of 2015, the effective yield on non-covered loans and covered loans was 5.63% and 29.75%, respectively. Net interest margin, on a fully taxable equivalent basis, was 4.95% for the quarter just ended.

During the fourth quarter of 2015, the Company recorded a provision for loan loss of $8.9 million compared to $5.4 million in the fourth quarter of 2014. This expected increase of $3.5 million is primarily a reflection of the organic loan growth generated during 2015.

The Company reported $17.3 million of non-interest income for the fourth quarter of 2015, compared to $10.2 million for the fourth quarter of 2014. The most important components of the fourth quarter non-interest income were $6.8 million from other service charges and fees, $6.5 million from service charges on deposits accounts, $2.4 million from mortgage lending income, $1.1 million from other income, and $513,000 from insurance commissions offset by the $1.2 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 has expired and only the ten-year loss-share remains. Consequently, there was a $6.2 million decline of FDIC indemnification amortization from the fourth quarter of 2014 to the fourth quarter of 2015.

Non-interest expense excluding merger expenses for the fourth quarter of 2015 was $46.1 million compared to $39.4 million for the fourth 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 plus the acquisition of FBBI during the fourth quarter of 2015. For the fourth quarter of 2015, our core efficiency ratio was 37.86% which is improved from the 40.15% reported for fourth quarter of 2014.

Financial Condition

Total non-covered loans were $6.58 billion at December 31, 2015 compared to $4.82 billion at December 31, 2014. Total covered loans were $62.2 million at December 31, 2015 compared to $240.2 million at December 31, 2014. Total deposits were $6.44 billion at December 31, 2015 compared to $5.42 billion at December 31, 2014. Total assets were $9.29 billion at December 31, 2015 compared to $7.40 billion at December 31, 2014.

Since the third quarter of 2015, non-covered loans increased $679.2 million. During the fourth 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 Wakulla and Gulf State concluded, which concludes all five-year loss-share agreements. As a result, $38.6 million of these loans including their associated discounts previously classified as covered loans have migrated to non-covered loans status. Including the effect of purchase accounting adjustments, we acquired approximately $408.3 million in loans through the acquisition of FBBI. As a result, the Company produced approximately $232.3 million of organic non-covered loan growth since September 30, 2015, of which $43.2 million is associated with loan originations in the legacy footprint with the remaining $189.1 million being associated with Centennial CFG.

Non-performing non-covered loans were $60.2 million as of December 31, 2015, of which $28.3 million, $31.8 million and $132,000 were located in Arkansas, Florida and Alabama, respectively. Non-performing non-covered loans as a percent of total non-covered loans were 0.92% as of December 31, 2015 compared to 0.82% as of December 31, 2014. Non-performing non-covered assets were $78.8 million as of December 31, 2015, of which $40.3 million, $37.5 million and $892,000 were located in Arkansas, Florida and Alabama, respectively. Non-performing non-covered assets as a percent of total non-covered assets were 0.85% as of December 31, 2015 compared to 0.79% as of December 31, 2014.

The Company’s allowance for loan losses for non-covered loans was $66.6 million at December 31, 2015, or 1.01% of total non-covered loans, compared to $52.5 million, or 1.09% of total non-covered loans, at December 31, 2014. As of December 31, 2015 and 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 3.07% and 3.88%, respectively. This decrease is primarily the result of the increase in non-covered loans during 2015 plus projected credit improvement from previous periods on the acquired impaired loans. As of December 31, 2015 and 2014, the Company’s allowance for loan losses for non-covered loans was 111% and 133% of its total non-performing non-covered loans, respectively.

Stockholders’ equity was $1.20 billion at December 31, 2015 compared to $1.02 billion at December 31, 2014, an increase of $184.5 million. Book value per common share was $17.11 at December 31, 2015 compared to $15.03 at December 31, 2014. Tangible book value per common share was $11.41 at December 31, 2015 compared to $9.90 at December 31, 2014 for an annualized increase of 15.3%.

Branches

During the fourth quarter of 2015, the Company acquired six branches through the acquisition of FBBI and has plans to open a deposit-only branch location in New York City during the first quarter of 2016. In an effort to achieve efficiencies primarily from the acquisitions, the Company closed one Arkansas location and three Florida locations during the fourth quarter of 2015 and has plans to close two Arkansas locations and two Florida locations during the first quarter of 2016. The Company currently has 79 branches in Arkansas, 61 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, January 21, 2016. We encourage all participants to pre-register for the conference call using the following link: http://dpregister.com/10077754. Callers who pre-register will be given dial-in instructions and a unique PIN to gain immediate access to the live call. Participants may pre-register at any time prior to the call and will immediately receive simple instructions via email. The Home BancShares conference call will also be automatically scheduled as an event in your Outlook calendar.

Those without internet access or unable to pre-register may dial in and listen to the live 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: 10077754, which will be available until January 28, 2016 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 September 30, 2015 filed with the SEC on November 5, 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)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(In thousands) 2015 2015 2015 2015 2014
ASSETS
Cash and due from banks$ 111,258 $ 120,262 $ 116,682 $ 115,448 $ 105,438
Interest-bearing deposits with other banks 144,565 108,394 87,729 82,123 7,090
Cash and cash equivalents 255,823 228,656 204,411 197,571 112,528
Federal funds sold 1,550 - - 6,100 250
Investment securities - available-for-sale 1,206,580 1,141,405 1,080,000 1,069,745 1,067,287
Investment securities - held-to-maturity 309,042 324,949 336,993 344,518 356,790
Loans receivable not covered by loss share 6,579,401 5,900,175 5,499,028 4,929,989 4,817,314
Loans receivable covered by FDIC loss share 62,170 105,414 159,891 169,460 240,188
Allowance for loan losses (69,224) (63,659) (60,258) (56,526) (55,011)
Loans receivable, net 6,572,347 5,941,930 5,598,661 5,042,923 5,002,491
Bank premises and equipment, net 212,163 205,505 209,425 209,326 206,912
Foreclosed assets held for sale not covered by loss share 18,526 18,204 16,539 17,402 16,951
Foreclosed assets held for sale covered by FDIC loss share 614 2,612 4,472 6,309 7,871
FDIC indemnification asset 9,284 11,290 15,874 19,435 28,409
Cash value of life insurance 85,146 75,281 75,015 74,722 74,444
Accrued interest receivable 29,132 26,977 24,447 23,542 24,075
Deferred tax asset, net 71,565 63,075 62,088 59,594 65,227
Goodwill 377,983 322,728 322,728 322,728 325,423
Core deposit and other intangibles 21,443 18,828 19,816 20,916 20,925
Other assets 117,924 134,113 103,913 99,143 93,689
Total assets$ 9,289,122 $ 8,515,553 $ 8,074,382 $ 7,513,974 $ 7,403,272
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing$ 1,456,624 $ 1,409,949 $ 1,406,051 $ 1,328,689 $ 1,203,306
Savings and interest-bearing transaction accounts 3,551,684 3,230,722 3,099,522 3,120,803 2,974,850
Time deposits 1,430,201 1,312,343 1,372,463 1,452,733 1,245,815
Total deposits 6,438,509 5,953,014 5,878,036 5,902,225 5,423,971
Federal funds purchased - - - - -
Securities sold under agreements to repurchase 128,389 134,142 150,746 178,615 176,465
FHLB borrowed funds 1,405,945 1,216,152 866,907 277,477 697,957
Accrued interest payable and other liabilities 55,696 60,141 56,166 55,268 28,761
Subordinated debentures 60,826 60,826 60,826 60,826 60,826
Total liabilities 8,089,365 7,424,275 7,012,681 6,474,411 6,387,980
Stockholders' equity
Common stock 701 680 677 676 676
Capital surplus 867,981 782,500 780,731 779,856 781,328
Retained earnings 326,898 299,984 274,409 248,951 226,279
Accumulated other comprehensive income 4,177 8,114 5,884 10,080 7,009
Total stockholders' equity 1,199,757 1,091,278 1,061,701 1,039,563 1,015,292
Total liabilities and stockholders' equity $ 9,289,122 $ 8,515,553 $ 8,074,382 $ 7,513,974 $ 7,403,272




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) 2015 2015 2015 2015 2014 2015 2014
Interest income
Loans$ 97,772 $ 88,671 $ 82,360 $ 75,487 $ 80,011 $ 344,290 $ 306,345
Investment securities
Taxable 5,865 5,157 5,130 5,543 5,168 21,695 19,305
Tax-exempt 2,879 2,789 2,774 2,752 2,843 11,194 10,091
Deposits - other banks 66 32 44 91 24 233 97
Federal funds sold 9 4 3 8 15 24 50
Total interest income 106,591 96,653 90,311 83,881 88,061 377,436 335,888
Interest expense
Interest on deposits 3,357 3,045 3,311 3,258 3,074 12,971 12,796
Federal funds purchased 1 1 1 1 1 4 3
FHLB borrowed funds 2,641 2,030 1,053 1,050 1,108 6,774 4,041
Securities sold under agreements to repurchase 140 146 163 172 181 621 717
Subordinated debentures 351 340 334 329 327 1,354 1,313
Total interest expense 6,490 5,562 4,862 4,810 4,691 21,724 18,870
Net interest income 100,101 91,091 85,449 79,071 83,370 355,712 317,018
Provision for loan losses 8,890 7,106 5,381 3,787 5,370 25,164 22,664
Net interest income after
provision for loan losses 91,211 83,985 80,068 75,284 78,000 330,548 294,354
Non-interest income
Service charges on deposit accounts 6,528 6,250 6,056 5,418 6,143 24,252 24,522
Other service charges and fees 6,827 6,644 6,499 6,216 6,273 26,186 23,914
Trust fees 365 398 1,186 432 313 2,381 1,378
Mortgage lending income 2,404 3,132 2,955 1,932 2,341 10,423 7,556
Insurance commissions 513 548 640 567 977 2,268 4,311
Income from title services 54 28 36 34 60 152 222
Increase in cash value of life insurance 328 268 295 308 319 1,199 1,210
Dividends from FHLB, FRB, Bankers' bank & other 431 433 419 415 405 1,698 1,611
Gain on acquisitions - - - 1,635 - 1,635 -
Gain on sale of SBA loans 390 151 - - - 541 183
Gain (loss) on sale of premises & equipment, net 23 (266) 21 8 (97) (214) 322
Gain (loss) on OREO, net (507) (40) (263) 493 264 (317) 2,191
Gain (loss) on securities, net - - - 4 - 4 -
FDIC indemnification accretion/(amortization), net (1,239) (1,994) (2,202) (3,956) (7,439) (9,391) (25,752)
Other income 1,139 993 1,385 1,164 652 4,681 3,094
Total non-interest income 17,256 16,545 17,027 14,670 10,211 65,498 44,762
Non-interest expense
Salaries and employee benefits 23,841 22,225 22,056 19,390 19,911 87,512 77,025
Occupancy and equipment 6,700 6,540 6,678 6,049 6,320 25,967 25,031
Data processing expense 2,673 2,619 3,063 2,419 1,842 10,774 7,229
Other operating expenses 15,785 13,209 11,453 12,855 13,076 53,302 52,658
Total non-interest expense 48,999 44,593 43,250 40,713 41,149 177,555 161,943
Income before income taxes 59,468 55,937 53,845 49,241 47,062 218,491 177,173
Income tax expense 22,035 20,196 19,939 18,122 17,136 80,292 64,110
Net income $ 37,433 $ 35,741 $ 33,906 $ 31,119 $ 29,926 $ 138,199 $ 113,063




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) 2015 2015 2015 2015 2014 2015 2014
PER SHARE DATA
Diluted earnings per common share$ 0.54 $ 0.52 $ 0.50 $ 0.46 $ 0.44 $ 2.02 $ 1.70
Diluted earnings per common share excluding
merger expenses
0.56 0.53 0.50 0.47 0.46 2.06 1.76
Diluted earnings per common share excluding
intangible amortization
0.54 0.53 0.51 0.47 0.46 2.05 1.75
Basic earnings per common share 0.53 0.53 0.50 0.46 0.44 2.02 1.71
Dividends per share - common 0.150 0.150 0.125 0.125 0.100 0.550 0.350
Book value per common share 17.11 16.05 15.67 15.38 15.03 17.11 15.03
Tangible book value per common share 11.41 11.03 10.61 10.30 9.90 11.41 9.90
STOCK INFORMATION
Average common shares outstanding 70,117 67,869 67,632 67,589 67,291 68,308 65,951
Average diluted shares outstanding 70,308 68,081 67,915 67,923 67,653 68,565 66,331
End of period common shares outstanding 70,121 68,000 67,774 67,577 67,571 70,121 67,571
ANNUALIZED PERFORMANCE METRICS
Return on average assets 1.62% 1.72% 1.72% 1.67% 1.62% 1.68% 1.63%
Return on average assets excluding
intangible amortization
1.72% 1.83% 1.83% 1.79% 1.74% 1.79% 1.75%
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)
3.27% 3.24% 3.20% 3.04% 3.13% 3.20% 3.19%
Return on average common equity 12.53% 13.23% 12.98% 12.33% 11.96% 12.77% 12.34%
Return on average tangible common equity
excluding intangible amortization
19.07% 19.76% 19.68% 18.99% 18.72% 19.37% 19.80%
Efficiency ratio 40.32% 39.79% 40.39% 41.41% 41.87% 40.44% 42.67%
Core efficiency ratio 37.86% 39.30% 40.30% 40.84% 40.15% 39.48% 41.23%
Net interest margin - FTE 4.95% 5.03% 5.00% 4.94% 5.26% 4.98% 5.37%
Fully taxable equivalent adjustment$ 2,025 $ 1,951 $ 1,879 $ 1,855 $ 1,911 $ 7,710 $ 6,854
Total revenue 123,847 113,198 107,338 98,551 98,272 442,934 380,650
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to
common shareholders
$ 37,433 $ 35,741 $ 33,906 $ 31,119 $ 29,926 $ 138,199 $ 113,063
Intangible amortization after-tax 524 600 669 686 707 2,479 2,814
Earnings excluding intangible amortization$ 37,957 $ 36,341 $ 34,575 $ 31,805 $ 30,633 $ 140,678 $ 115,877
GAAP diluted earnings per share$ 0.54 $ 0.52 $ 0.50 $ 0.46 $ 0.44 $ 2.02 $ 1.70
Intangible amortization after-tax - 0.01 0.01 0.01 0.02 0.03 0.05
Diluted earnings per share excluding
intangible amortization
$ 0.54 $ 0.53 $ 0.51 $ 0.47 $ 0.46 $ 2.05 $ 1.75
OTHER OPERATING EXPENSES
Advertising$ 644 $ 906 $ 657 $ 779 $ 792 $ 2,986 $ 2,568
Merger and acquisition expenses 2,909 474 - 1,417 1,711 4,800 6,438
Amortization of intangibles 862 988 1,100 1,129 1,163 4,079 4,630
Electronic banking expense 1,283 1,352 1,299 1,232 1,351 5,166 5,308
Directors' fees 262 233 281 295 243 1,071 912
Due from bank service charges 304 291 286 215 199 1,096 803
FDIC and state assessment 1,443 1,276 1,172 1,396 1,144 5,287 4,288
Insurance 642 617 617 666 685 2,542 2,538
Legal and accounting 537 338 706 447 666 2,028 2,012
Other professional fees 1,231 947 560 488 394 3,226 2,200
Operating supplies 473 464 509 434 473 1,880 1,928
Postage 299 293 295 309 329 1,196 1,331
Telephone 499 444 470 504 503 1,917 1,968
Other expense 4,397 4,586 3,501 3,544 3,423 16,028 15,734
Total other operating expenses$ 15,785 $ 13,209 $ 11,453 $ 12,855 $ 13,076 $ 53,302 $ 52,658




Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(Dollars in thousands) 2015 2015 2015 2015 2014
BALANCE SHEET RATIOS
Total loans to total deposits 103.15% 100.88% 96.27% 86.40% 93.24%
Common equity to assets 12.9% 12.8% 13.1% 13.8% 13.7%
Tangible common equity to tangible assets 9.0% 9.2% 9.3% 9.7% 9.5%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period$ 60,581 $ 55,877 $ 52,731 $ 52,471 $ 50,695
Loans charged off 4,316 3,966 3,339 3,150 3,811
Recoveries of loans previously charged off 1,188 535 1,184 541 1,121
Net loans (recovered)/charged off 3,128 3,431 2,155 2,609 2,690
Provision for loan losses 8,890 7,106 5,301 2,869 4,466
Reclass of provision for loan losses attributable to
FDIC loss share agreements
293 1,029 - - -
Balance, end of period$ 66,636 $ 60,581 $ 55,877 $ 52,731 $ 52,471
Discount for credit losses on non-covered loans acquired 139,498 134,131 131,746 134,699 139,720
Net (recoveries) charge-offs on loans not covered by loss
share to average non-covered loans
0.19% 0.24% 0.16% 0.22% 0.23%
Allowance for loan losses for non-covered loans
to total non-covered loans
1.01% 1.03% 1.02% 1.07% 1.09%
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
3.07% 3.23% 3.33% 3.70% 3.88%
Covered
Balance, beginning of period$ 3,078 $ 4,381 $ 3,795 $ 2,540 $ 2,149
Loans charged off 158 251 - 772 858
Recoveries of loans previously charged off (39) (318) 186 265 345
Net loans charged off/(recovered) 197 569 (186) 507 513
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
(293) (1,029) - - -
Increase (decrease) in FDIC indemnification asset - 295 320 844 -
Balance, end of period$ 2,588 $ 3,078 $ 4,381 $ 3,795 $ 2,540
Total allowance for loan losses$ 69,224 $ 63,659 $ 60,258 $ 56,526 $ 55,011
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans$ 36,374 $ 37,405 $ 29,033 $ 25,354 $ 24,691
Non-covered loans past due 90 days or more 23,845 11,390 10,847 12,160 14,871
Total non-performing non-covered loans 60,219 48,795 39,880 37,514 39,562
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 18,526 18,204 16,539 17,402 16,951
Other non-performing non-covered assets 38 14 12 - -
Total other non-performing non-covered assets 18,564 18,218 16,551 17,402 16,951
Total non-performing non-covered assets$ 78,783 $ 67,013 $ 56,431 $ 54,916 $ 56,513
Allowance for loan losses for non-covered loans to
non-performing non-covered loans
110.66% 124.15% 140.11% 140.56% 132.63%
Non-performing non-covered loans to total
non-covered loans
0.92% 0.83% 0.73% 0.76% 0.82%
Non-performing non-covered assets to total
non-covered assets
0.85% 0.80% 0.71% 0.75% 0.79%




Home BancShares, Inc.
Loan Information
(Unaudited)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(Dollars in thousands) 2015 2015 2015 2015 2014
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential$ 2,968,147 $ 2,655,882 $ 2,477,688 $ 2,042,781 $ 1,987,890
Construction/land development 943,095 805,003 796,589 733,564 700,139
Agricultural 75,027 75,233 81,633 82,985 72,211
Residential real estate loans
Residential 1-4 family 1,130,714 1,055,504 997,952 976,719 963,990
Multifamily residential 429,872 392,483 321,593 274,515 250,222
Total real estate 5,546,855 4,984,105 4,675,455 4,110,564 3,974,452
Consumer 52,258 46,677 48,320 51,852 56,720
Commercial and industrial 850,357 749,846 658,501 641,411 670,124
Agricultural 67,109 78,217 72,766 58,317 48,833
Other 62,822 41,330 43,986 67,845 67,185
Loans receivable not covered by loss share$ 6,579,401 $ 5,900,175 $ 5,499,028 $ 4,929,989 $ 4,817,314
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential$ 188 $ 25,903 $ 54,777 $ 58,251 $ 93,979
Construction/land development 1,692 7,836 24,003 25,495 39,946
Agricultural - 735 848 875 943
Residential real estate loans
Residential 1-4 family 59,565 66,447 72,002 76,758 87,309
Multifamily residential 384 1,200 1,394 1,421 8,617
Total real estate 61,829 102,121 153,024 162,800 230,794
Consumer - 10 17 17 16
Commercial and industrial 230 2,682 6,118 5,887 8,651
Agricultural - - - - -
Other 111 601 732 756 727
Loans receivable covered by loss share$ 62,170 $ 105,414 $ 159,891 $ 169,460 $ 240,188




Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
December 31, 2015 September 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$ 118,854 $ 66 0.22% $ 78,783 $ 32 0.16%
Federal funds sold 12,143 9 0.29% 5,293 4 0.30%
Investment securities - taxable 1,165,060 5,865 2.00% 1,129,453 5,157 1.81%
Investment securities - non-taxable - FTE 346,909 4,705 5.38% 326,069 4,557 5.54%
Loans receivable - FTE 6,535,714 97,971 5.95% 5,800,688 88,854 6.08%
Total interest-earning assets 8,178,680 108,616 5.27% 7,340,286 98,604 5.33%
Non-earning assets 973,962 890,551
Total assets$ 9,152,642 $ 8,230,837
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts$ 3,522,713 $ 1,742 0.20% $ 3,157,279 $ 1,514 0.19%
Time deposits 1,449,881 1,615 0.44% 1,320,995 1,531 0.46%
Total interest-bearing deposits 4,972,594 3,357 0.27% 4,478,274 3,045 0.27%
Federal funds purchased 708 1 0.56% 1,250 1 0.32%
Securities sold under agreement to repurchase 135,134 140 0.41% 143,672 146 0.40%
FHLB borrowed funds 1,242,496 2,641 0.84% 1,044,369 2,030 0.77%
Subordinated debentures 60,826 351 2.29% 60,826 340 2.22%
Total interest-bearing liabilities 6,411,758 6,490 0.40% 5,728,391 5,562 0.39%
Non-interest bearing liabilities
Non-interest bearing deposits 1,488,714 1,371,924
Other liabilities 66,531 58,729
Total liabilities 7,967,003 7,159,044
Shareholders' equity 1,185,639 1,071,793
Total liabilities and shareholders' equity$ 9,152,642 $ 8,230,837
Net interest spread 4.87% 4.94%
Net interest income and margin - FTE $ 102,126 4.95% $ 93,042 5.03%




Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Year Ended
December 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$ 108,315 $ 233 0.22% $ 49,794 $ 97 0.19%
Federal funds sold 9,250 24 0.26% 24,018 50 0.21%
Investment securities - taxable 1,114,829 21,695 1.95% 1,041,322 19,305 1.85%
Investment securities - non-taxable - FTE 332,048 18,309 5.51% 301,051 16,502 5.48%
Loans receivable - FTE 5,732,315 344,885 6.02% 4,613,919 306,788 6.65%
Total interest-earning assets 7,296,757 385,146 5.28% 6,030,104 342,742 5.68%
Non-earning assets 914,225 922,311
Total assets$ 8,210,982 $ 6,952,415
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts$ 3,218,745 $ 6,306 0.20% $ 2,839,329 $ 5,279 0.19%
Time deposits 1,381,562 6,665 0.48% 1,373,273 7,517 0.55%
Total interest-bearing deposits 4,600,307 12,971 0.28% 4,212,602 12,796 0.30%
Federal funds purchased 824 4 0.49% 956 3 0.31%
Securities sold under agreement to repurchase 156,513 621 0.40% 151,610 717 0.47%
FHLB borrowed funds 902,852 6,774 0.75% 486,742 4,041 0.83%
Subordinated debentures 60,826 1,354 2.23% 60,826 1,313 2.16%
Total interest-bearing liabilities 5,721,322 21,724 0.38% 4,912,736 18,870 0.38%
Non-interest bearing liabilities
Non-interest bearing deposits 1,358,905 1,101,923
Other liabilities 48,170 21,469
Total liabilities 7,128,397 6,036,128
Shareholders' equity 1,082,585 916,287
Total liabilities and shareholders' equity$ 8,210,982 $ 6,952,415
Net interest spread 4.90% 5.30%
Net interest income and margin - FTE $ 363,422 4.98% $ 323,872 5.37%



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

Source:Home BancShares, Inc.