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Home BancShares, Inc. Announces a 33.1% Increase in First Quarter Earnings

CONWAY, Ark., April 21, 2016 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ:HOMB), parent company of Centennial Bank, today announced a record quarterly profit of $41.4 million, or $0.59 diluted earnings per share for the first quarter of 2016 compared to $31.1 million or $0.46 diluted earnings per share for the same quarter in 2015. The Company increased its first quarter earnings by $10.3 million or 33.1% for the three months ended March 31, 2016 compared to the same period of the previous year. The Company also announced $212.8 million in quarterly organic loan growth during the first quarter of 2016 and a core efficiency ratio of 37.52%.

“As anticipated, the Company has started the year with another outstanding quarter,” said John Allison, Chairman. “During the first quarter of 2016, we have continued to achieve and, in some cases, exceed our internal goals. We organically grew loans by $212.8 million while further improving the core efficiency ratio to 37.52%. We are well-positioned and committed to making 2016 another remarkable year of maximizing the returns to our shareholders.”

“We are happy to report the first quarter of 2016 as the twentieth consecutive quarter reporting the most profitable quarter in the Company's history,” said Randy Sims, Home BancShares, Inc. Chief Executive Officer. “The 10.7%, or $4.0 million increase in earnings over our previously reported record quarterly earnings is an impressive accomplishment. For the quarter just ended, the Company also reported excellent results for diluted earnings per share of $0.59 per share and a 1.79% return on average assets.”

“We are pleased with the first quarter’s strong financial results and organic loan growth," added Tracy French, Centennial Bank President and Chief Executive Officer. “We will continue to use this momentum to seek opportunities to expand our existing footprint or enter new markets. Our ability to generate and retain a significant amount of capital each quarter leaves us in a position to continue supporting organic growth, but also taking advantage of new opportunities as they are presented.”

Operating Highlights

Net interest margin, on a fully taxable equivalent basis, was 4.81% for the quarter just ended compared to 4.94% for the same quarter in 2015 and compared to 4.95% for the fourth quarter of 2015. As was expected, accretion yield on purchased loans decreased $2.5 million from $13.2 million for the fourth quarter of 2015 to $10.7 million for first quarter of 2016. This decline is a result of a slow-down in payoff accretion and the maturing of our acquired loan portfolios. Our loan interest income per day for the first quarter 2016 was approximately $1,065,000 compared to $1,063,000 for the fourth quarter of 2015. Although we had a decline in yield accretion on purchased loans there was approximately a $2,000 per day improvement in loan interest income due to our first quarter organic loan growth. If there had been 92 days in the first quarter of 2016 versus 91 days our proforma loan interest income would have been approximately $98.0 million or a $200,000 increase from the $97.8 million in the fourth quarter of 2015. As a result, the net interest margin, excluding accretion yield on purchased loans was relatively flat from fourth quarter 2015 to first quarter of 2016 at 4.23% and 4.22%, respectively.

During the first quarter of 2016, the Company recorded a provision for loan loss of $5.7 million compared to $3.8 million in the first quarter of 2015. This increase of $1.9 million is primarily a result of the $212.8 million organic loan growth generated during the first quarter of 2016 compared to $18.5 million generated in the first quarter of 2015.

The Company reported $19.4 million of non-interest income for the first quarter of 2016, compared to $14.7 million for the first quarter of 2015. The most important components of the first quarter non-interest income were $7.1 million from other service charges and fees, $5.9 million from service charges on deposits accounts, $2.9 million from mortgage lending income, $1.8 million from other income, and $657,000 from insurance commissions offset by the $362,000 of net amortization on the FDIC indemnification asset. Other income includes loan recoveries on our FDIC covered transactions and other purchased loans of $594,000.

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 $3.6 million decline of FDIC indemnification amortization from the first quarter of 2015 to the first quarter of 2016.

Non-interest expense, excluding merger expenses for the first quarter of 2016 was $45.6 million compared to $39.3 million for the first quarter of 2015. 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, the acquisition of FBBI during the fourth quarter of 2015 and write-downs on vacant properties from closed branches. For the first quarter of 2016, our core efficiency ratio was 37.52% which is improved from the 40.84% reported for first quarter of 2015.

Financial Condition

Total non-covered loans were $6.79 billion at March 31, 2016 compared to $6.58 billion at December 31, 2015. Total covered loans were $60.0 million at March 31, 2016 compared to $62.2 million at December 31, 2015. Total deposits were $6.58 billion at March 31, 2016 compared to $6.44 billion at December 31, 2015. Total assets were $9.40 billion at March 31, 2016 compared to $9.29 billion at December 31, 2015.

From December 31, 2015 to March 31, 2016, the Company produced approximately $212.8 million of organic non-covered loan growth, of which $77.2 million is associated with loan originations in the legacy footprint with the remaining $135.6 million being associated with Centennial CFG. Centennial CFG had loans of $851.4 million at March 31, 2016.

Non-performing non-covered loans were $55.4 million as of March 31, 2016, of which $27.4 million, $28.0 million and $25,000 were located in Arkansas, Florida and Alabama, respectively. Non-performing non-covered loans as a percent of total non-covered loans were 0.82% as of March 31, 2016 compared to 0.92% as of December 31, 2015. Non-performing non-covered assets were $75.1 million as of March 31, 2016, of which $41.7 million, $32.8 million and $626,000 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 March 31, 2016 compared to 0.85% as of December 31, 2015. There were no non-performing assets from Centennial CFG at March 31, 2016.

The Company’s allowance for loan losses for non-covered loans was $69.8 million at March 31, 2016, or 1.03% of total non-covered loans, compared to $66.6 million, or 1.01% of total non-covered loans, at December 31, 2015. As of March 31, 2016 and December 31, 2015, 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 2.88% and 3.07%, respectively. This decrease is primarily the result of organic loan growth in 2016 plus projected credit improvement from previous periods on the acquired impaired loans. As of March 31, 2016 and December 31, 2015, the Company’s allowance for loan losses for non-covered loans was 126% and 111% of its total non-performing non-covered loans, respectively.

Stockholders’ equity was $1.23 billion at March 31, 2016 compared to $1.20 billion at December 31, 2015, an increase of $28.0 million. Book value per common share was $17.49 at March 31, 2016 compared to $17.11 at December 31, 2015. Tangible book value per common share was $11.81 at March 31, 2016 compared to $11.41 at December 31, 2015 for an annualized increase of 14.1%.

Branches

During the first quarter of 2016, the Company received approval to open a deposit-only branch location in New York City during the second quarter of 2016. In an effort to achieve efficiencies primarily from the acquisitions, the Company closed two Arkansas locations and two Florida locations during the first quarter of 2016 and has plans to close one Florida location during the second quarter of 2016. The Company currently has 77 branches in Arkansas, 59 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, April 21, 2016. We encourage all participants to pre-register for the conference call using the following link: http://dpregister.com/10082807. 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: 10082807, which will be available until April 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, 2015 filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2016.

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)
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(In thousands) 2016 2015 2015 2015 2015
ASSETS
Cash and due from banks $ 115,206 $ 111,258 $ 120,262 $ 116,682 $ 115,448
Interest-bearing deposits with other banks 42,866 144,565 108,394 87,729 82,123
Cash and cash equivalents 158,072 255,823 228,656 204,411 197,571
Federal funds sold 7,050 1,550 - - 6,100
Investment securities - available-for-sale 1,207,773 1,206,580 1,141,405 1,080,000 1,069,745
Investment securities - held-to-maturity 299,050 309,042 324,949 336,993 344,518
Loans receivable not covered by loss share 6,792,170 6,579,401 5,900,175 5,499,028 4,929,989
Loans receivable covered by FDIC loss share 60,042 62,170 105,414 159,891 169,460
Allowance for loan losses (72,306) (69,224) (63,659) (60,258) (56,526)
Loans receivable, net 6,779,906 6,572,347 5,941,930 5,598,661 5,042,923
Bank premises and equipment, net 210,764 212,163 205,505 209,425 209,326
Foreclosed assets held for sale not covered by loss share 19,657 18,526 18,204 16,539 17,402
Foreclosed assets held for sale covered by FDIC loss share 545 614 2,612 4,472 6,309
FDIC indemnification asset 8,656 9,284 11,290 15,874 19,435
Cash value of life insurance 85,538 85,146 75,281 75,015 74,722
Accrued interest receivable 28,833 29,132 26,977 24,447 23,542
Deferred tax asset, net 69,564 71,565 63,075 62,088 59,594
Goodwill 377,983 377,983 322,728 322,728 322,728
Core deposit and other intangibles 20,597 21,443 18,828 19,816 20,916
Other assets 123,463 117,924 134,113 103,913 99,143
Total assets $ 9,397,451 $ 9,289,122 $ 8,515,553 $ 8,074,382 ��$ 7,513,974
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing $ 1,562,565 $ 1,456,624 $ 1,409,949 $ 1,406,051 $ 1,328,689
Savings and interest-bearing transaction accounts 3,602,868 3,551,684 3,230,722 3,099,522 3,120,803
Time deposits 1,412,086 1,430,201 1,312,343 1,372,463 1,452,733
Total deposits 6,577,519 6,438,509 5,953,014 5,878,036 5,902,225
Federal funds purchased - - - - -
Securities sold under agreements to repurchase 121,906 128,389 134,142 150,746 178,615
FHLB borrowed funds 1,336,233 1,405,945 1,216,152 866,907 277,477
Accrued interest payable and other liabilities 73,185 55,696 60,141 56,166 55,268
Subordinated debentures 60,826 60,826 60,826 60,826 60,826
Total liabilities 8,169,669 8,089,365 7,424,275 7,012,681 6,474,411
Stockholders' equity
Common stock 702 701 680 677 676
Capital surplus 862,827 867,981 782,500 780,731 779,856
Retained earnings 357,788 326,898 299,984 274,409 248,951
Accumulated other comprehensive income 6,465 4,177 8,114 5,884 10,080
Total stockholders' equity 1,227,782 1,199,757 1,091,278 1,061,701 1,039,563
Total liabilities and stockholders' equity $ 9,397,451 $ 9,289,122 $ 8,515,553 $ 8,074,382 $ 7,513,974


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) 2016 2015 2015 2015 2015 2016 2015
Interest income
Loans $ 96,913 $ 97,772 $ 88,671 $ 82,360 $ 75,487 $ 96,913 $ 75,487
Investment securities
Taxable 5,450 5,865 5,157 5,130 5,543 5,450 5,543
Tax-exempt 2,815 2,879 2,789 2,774 2,752 2,815 2,752
Deposits - other banks 102 66 32 44 91 102 91
Federal funds sold 4 9 4 3 8 4 8
Total interest income 105,284 106,591 96,653 90,311 83,881 105,284 83,881
Interest expense
Interest on deposits 3,634 3,357 3,045 3,311 3,258 3,634 3,258
Federal funds purchased 1 1 1 1 1 1 1
FHLB borrowed funds 3,070 2,641 2,030 1,053 1,050 3,070 1,050
Securities sold under agreements to repurchase 145 140 146 163 172 145 172
Subordinated debentures 377 351 340 334 329 377 329
Total interest expense 7,227 6,490 5,562 4,862 4,810 7,227 4,810
Net interest income 98,057 100,101 91,091 85,449 79,071 98,057 79,071
Provision for loan losses 5,677 8,890 7,106 5,381 3,787 5,677 3,787
Net interest income after
provision for loan losses 92,380 91,211 83,985 80,068 75,284 92,380 75,284
Non-interest income
Service charges on deposit accounts 5,929 6,528 6,250 6,056 5,418 5,929 5,418
Other service charges and fees 7,117 6,827 6,644 6,499 6,216 7,117 6,216
Trust fees 404 365 398 1,186 432 404 432
Mortgage lending income 2,863 2,404 3,132 2,955 1,932 2,863 1,932
Insurance commissions 657 513 548 640 567 657 567
Income from title services 4 54 28 36 34 4 34
Increase in cash value of life insurance 395 328 268 295 308 395 308
Dividends from FHLB, FRB, Bankers' bank & other 620 431 433 419 415 620 415
Gain on acquisitions - - - - 1,635 - 1,635
Gain on sale of SBA loans - 390 151 - - - -
Gain (loss) on sale of premises & equipment, net (53) 23 (266) 21 8 (53) 8
Gain (loss) on OREO, net 96 (507) (40) (263) 493 96 493
Gain (loss) on securities, net 10 - - - 4 10 4
FDIC indemnification accretion/(amortization), net (362) (1,239) (1,994) (2,202) (3,956) (362) (3,956)
Other income 1,757 1,139 993 1,385 1,164 1,757 1,164
Total non-interest income 19,437 17,256 16,545 17,027 14,670 19,437 14,670
Non-interest expense
Salaries and employee benefits 23,958 23,841 22,225 22,056 19,390 23,958 19,390
Occupancy and equipment 6,671 6,700 6,540 6,678 6,049 6,671 6,049
Data processing expense 2,664 2,673 2,619 3,063 2,419 2,664 2,419
Other operating expenses 12,355 15,785 13,209 11,453 12,855 12,355 12,855
Total non-interest expense 45,648 48,999 44,593 43,250 40,713 45,648 40,713
Income before income taxes 66,169 59,468 55,937 53,845 49,241 66,169 49,241
Income tax expense 24,742 22,035 20,196 19,939 18,122 24,742 18,122
Net income $ 41,427 $ 37,433 $ 35,741 $ 33,906 $ 31,119 $ 41,427 $ 31,119


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) 2016 2015 2015 2015 2015 2016 2015
PER SHARE DATA
Diluted earnings per common share $ 0.59 $ 0.54 $ 0.52 $ 0.50 $ 0.46 $ 0.59 $ 0.46
Diluted earnings per common share excluding
merger expenses
0.59 0.56 0.53 0.50 0.47 0.59 0.47
Diluted earnings per common share excluding
intangible amortization
0.60 0.54 0.53 0.51 0.47 0.60 0.47
Basic earnings per common share 0.59 0.53 0.53 0.50 0.46 0.59 0.46
Dividends per share - common 0.150 0.150 0.150 0.125 0.125 0.150 0.125
Book value per common share 17.49 17.11 16.05 15.67 15.38 17.49 15.38
Tangible book value per common share 11.81 11.41 11.03 10.61 10.30 11.81 10.30
STOCK INFORMATION
Average common shares outstanding 70,195 70,117 67,869 67,632 67,589 70,195 67,589
Average diluted shares outstanding 70,344 70,308 68,081 67,915 67,923 70,344 67,923
End of period common shares outstanding 70,190 70,121 68,000 67,774 67,577 70,190 67,577
ANNUALIZED PERFORMANCE METRICS
Return on average assets 1.79% 1.62% 1.72% 1.72% 1.67% 1.79% 1.67%
Return on average assets excluding
intangible amortization
1.89% 1.72% 1.83% 1.83% 1.79% 1.89% 1.79%
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% 3.27% 3.24% 3.20% 3.04% 3.27% 3.04%
Return on average common equity 13.77% 12.53% 13.23% 12.98% 12.33% 13.77% 12.33%
Return on average tangible common equity
excluding intangible amortization
20.79% 19.07% 19.76% 19.68% 18.99% 20.79% 18.99%
Efficiency ratio 37.50% 40.32% 39.79% 40.39% 41.41% 37.50% 41.41%
Core efficiency ratio 37.52% 37.86% 39.30% 40.30% 40.84% 37.52% 40.84%
Net interest margin - FTE 4.81% 4.95% 5.03% 5.00% 4.94% 4.81% 4.94%
Fully taxable equivalent adjustment $ 1,973 $ 2,025 $ 1,951 $ 1,879 $ 1,855 $ 1,973 $ 1,855
Total revenue 124,721 123,847 113,198 107,338 98,551 124,721 98,551
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to
common shareholders
$ 41,427 $ 37,433 $ 35,741 $ 33,906 $ 31,119 $ 41,427 $ 31,119
Intangible amortization after-tax 514 524 600 669 686 514 686
Earnings excluding intangible amortization $ 41,941 $ 37,957 $ 36,341 $ 34,575 $ 31,805 $ 41,941 $ 31,805
GAAP diluted earnings per share $ 0.59 $ 0.54 $ 0.52 $ 0.50 $ 0.46 $ 0.59 $ 0.46
Intangible amortization after-tax 0.01 - 0.01 0.01 0.01 0.01 0.01
Diluted earnings per share excluding
intangible amortization
$ 0.60 $ 0.54 $ 0.53 $ 0.51 $ 0.47 $ 0.60 $ 0.47
OTHER OPERATING EXPENSES
Advertising $ 823 $ 644 $ 906 $ 657 $ 779 $ 823 $ 779
Merger and acquisition expenses - 2,909 474 - 1,417 - 1,417
Amortization of intangibles 845 862 988 1,100 1,129 845 1,129
Electronic banking expense 1,456 1,283 1,352 1,299 1,232 1,456 1,232
Directors' fees 275 262 233 281 295 275 295
Due from bank service charges 305 304 291 286 215 305 215
FDIC and state assessment 1,446 1,443 1,276 1,172 1,396 1,446 1,396
Insurance 533 642 617 617 666 533 666
Legal and accounting 523 537 338 706 447 523 447
Other professional fees 925 1,231 947 560 488 925 488
Operating supplies 436 473 464 509 434 436 434
Postage 286 299 293 295 309 286 309
Telephone 487 499 444 470 504 487 504
Other expense 4,015 4,397 4,586 3,501 3,544 4,015 3,544
Total other operating expenses $ 12,355 $ 15,785 $ 13,209 $ 11,453 $ 12,855 $ 12,355 $ 12,855


Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(Dollars in thousands) 2016 2015 2015 2015 2015
BALANCE SHEET RATIOS
Total loans to total deposits 104.18% 103.15% 100.88% 96.27% 86.40%
Common equity to assets 13.1% 12.9% 12.8% 13.1% 13.8%
Tangible common equity to tangible assets 9.2% 9.0% 9.2% 9.3% 9.7%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period $ 66,636 $ 60,581 $ 55,877 $ 52,731 $ 52,471
Loans charged off 3,876 4,316 3,966 3,339 3,150
Recoveries of loans previously charged off 1,343 1,188 535 1,184 541
Net loans (recovered)/charged off 2,533 3,128 3,431 2,155 2,609
Provision for loan losses 5,677 8,890 7,106 5,301 2,869
Reclass of provision for loan losses attributable to
FDIC loss share agreements
- 293 1,029 - -
Balance, end of period $ 69,780 $ 66,636 $ 60,581 $ 55,877 $ 52,731
Discount for credit losses on non-covered loans acquired 129,837 139,498 134,131 131,746 134,699
Net (recoveries) charge-offs on loans not covered by loss
share to average non-covered loans
0.15% 0.19% 0.24% 0.16% 0.22%
Allowance for loan losses for non-covered loans
to total non-covered loans
1.03% 1.01% 1.03% 1.02% 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
2.88% 3.07% 3.23% 3.33% 3.70%
Covered
Balance, beginning of period $ 2,588 $ 3,078 $ 4,381 $ 3,795 $ 2,540
Loans charged off 71 158 251 - 772
Recoveries of loans previously charged off 9 (39) (318) 186 265
Net loans charged off/(recovered) 62 197 569 (186) 507
Provision for loan losses forecasted outside of loss share - - 295 - (295)
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
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 $ 2,526 $ 2,588 $ 3,078 $ 4,381 $ 3,795
Total allowance for loan losses $ 72,306 $ 69,224 $ 63,659 $ 60,258 $ 56,526
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans $ 33,409 $ 36,374 $ 37,405 $ 29,033 $ 25,354
Non-covered loans past due 90 days or more 22,008 23,845 11,390 10,847 12,160
Total non-performing non-covered loans 55,417 60,219 48,795 39,880 37,514
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 19,657 18,526 18,204 16,539 17,402
Other non-performing non-covered assets - 38 14 12 -
Total other non-performing non-covered assets 19,657 18,564 18,218 16,551 17,402
Total non-performing non-covered assets $ 75,074 $ 78,783 $ 67,013 $ 56,431 $ 54,916
Allowance for loan losses for non-covered loans to
non-performing non-covered loans
125.92% 110.66% 124.15% 140.11% 140.56%
Non-performing non-covered loans to total
non-covered loans
0.82% 0.92% 0.83% 0.73% 0.76%
Non-performing non-covered assets to total
non-covered assets
0.80% 0.85% 0.80% 0.71% 0.75%


Home BancShares, Inc.
Loan Information
(Unaudited)
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(Dollars in thousands) 2016 2015 2015 2015 2015
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 2,889,735 $ 2,968,147 $ 2,655,882 $ 2,477,688 $ 2,042,781
Construction/land development 976,098 943,095 805,003 796,589 733,564
Agricultural 75,763 75,027 75,233 81,633 82,985
Residential real estate loans
Residential 1-4 family 1,145,080 1,130,714 1,055,504 997,952 976,719
Multifamily residential 437,721 429,872 392,483 321,593 274,515
Total real estate 5,524,397 5,546,855 4,984,105 4,675,455 4,110,564
Consumer 50,090 52,258 46,677 48,320 51,852
Commercial and industrial 1,070,139 850,357 749,846 658,501 641,411
Agricultural 63,482 67,109 78,217 72,766 58,317
Other 84,062 62,822 41,330 43,986 67,845
Loans receivable not covered by loss share $ 6,792,170 $ 6,579,401 $ 5,900,175 $ 5,499,028 $ 4,929,989
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 192 $ 188 $ 25,903 $ 54,777 $ 58,251
Construction/land development 1,702 1,692 7,836 24,003 25,495
Agricultural - - 735 848 875
Residential real estate loans
Residential 1-4 family 57,243 59,565 66,447 72,002 76,758
Multifamily residential 379 384 1,200 1,394 1,421
Total real estate 59,516 61,829 102,121 153,024 162,800
Consumer - - 10 17 17
Commercial and industrial 414 230 2,682 6,118 5,887
Agricultural - - - - -
Other 112 111 601 732 756
Loans receivable covered by loss share $ 60,042 $ 62,170 $ 105,414 $ 159,891 $ 169,460


Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
March 31, 2016 December 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 $ 113,831 $ 102 0.36% $ 118,854 $ 66 0.22%
Federal funds sold 3,049 4 0.53% 12,143 9 0.29%
Investment securities - taxable 1,177,595 5,450 1.86% 1,165,060 5,865 2.00%
Investment securities - non-taxable - FTE 338,988 4,598 5.46% 346,909 4,705 5.38%
Loans receivable - FTE 6,729,060 97,103 5.80% 6,535,714 97,971 5.95%
Total interest-earning assets 8,362,523 107,257 5.16% 8,178,680 108,616 5.27%
Non-earning assets 968,099 973,962
Total assets $ 9,330,622 $ 9,152,642
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 3,593,914 $ 2,018 0.23% $ 3,522,713 $ 1,742 0.20%
Time deposits 1,393,591 1,616 0.47% 1,449,881 1,615 0.44%
Total interest-bearing deposits 4,987,505 3,634 0.29% 4,972,594 3,357 0.27%
Federal funds purchased 610 1 0.66% 708 1 0.56%
Securities sold under agreement to repurchase 128,897 145 0.45% 135,134 140 0.41%
FHLB borrowed funds 1,368,457 3,070 0.90% 1,242,496 2,641 0.84%
Subordinated debentures 60,826 377 2.49% 60,826 351 2.29%
Total interest-bearing liabilities 6,546,295 7,227 0.44% 6,411,758 6,490 0.40%
Non-interest bearing liabilities
Non-interest bearing deposits 1,514,169 1,488,714
Other liabilities 59,891 66,531
Total liabilities 8,120,355 7,967,003
Shareholders' equity 1,210,267 1,185,639
Total liabilities and shareholders' equity $ 9,330,622 $ 9,152,642
Net interest spread 4.72% 4.87%
Net interest income and margin - FTE $ 100,030 4.81% $ 102,126 4.95%


Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
March 31, 2016 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 $ 113,831 $ 102 0.36% $ 151,693 $ 91 0.24%
Federal funds sold 3,049 4 0.53% 15,290 8 0.21%
Investment securities - taxable 1,177,595 5,450 1.86% 1,081,613 5,543 2.08%
Investment securities - non-taxable - FTE 338,988 4,598 5.46% 327,984 4,504 5.57%
Loans receivable - FTE 6,729,060 97,103 5.80% 5,068,580 75,590 6.05%
Total interest-earning assets 8,362,523 107,257 5.16% 6,645,160 85,736 5.23%
Non-earning assets 968,099 896,648
Total assets $ 9,330,622 $ 7,541,808
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 3,593,914 $ 2,018 0.23% $ 3,040,876 $ 1,474 0.20%
Time deposits 1,393,591 1,616 0.47% 1,335,984 1,784 0.54%
Total interest-bearing deposits 4,987,505 3,634 0.29% 4,376,860 3,258 0.30%
Federal funds purchased 610 1 0.66% 1,125 1 0.36%
Securities sold under agreement to repurchase 128,897 145 0.45% 179,561 172 0.39%
FHLB borrowed funds 1,368,457 3,070 0.90% 639,251 1,050 0.67%
Subordinated debentures 60,826 377 2.49% 60,826 329 2.19%
Total interest-bearing liabilities 6,546,295 7,227 0.44% 5,257,623 4,810 0.37%
Non-interest bearing liabilities
Non-interest bearing deposits 1,514,169 1,227,323
Other liabilities 59,891 33,381
Total liabilities 8,120,355 6,518,327
Shareholders' equity 1,210,267 1,023,481
Total liabilities and shareholders' equity $ 9,330,622 $ 7,541,808
Net interest spread 4.72% 4.86%
Net interest income and margin - FTE $ 100,030 4.81% $ 80,926 4.94%

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

Source:Home BancShares, Inc.