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Home BancShares, Inc. Announces Record Quarterly Earnings of $16.1 Million

CONWAY, Ark., Oct. 18, 2012 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced third quarter earnings of $16.1 million, or $0.57 diluted earnings per common share, compared to $13.8 million of net income available to common shareholders, or $0.48 diluted earnings per common share for the same quarter in 2011. The Company increased its third quarter earnings by $2.3 million or 16.4% for the three months ended September 30, 2012 compared to the same period of the previous year.

Because acquisitions are growth and capital management strategies, earnings excluding amortization of intangibles after-tax are useful in evaluating the Company. Diluted earnings per common share excluding intangible amortization for the third quarter of 2012 was $0.58 compared to $0.50 diluted earnings per common share excluding intangible amortization for the same period in 2011.

"The results our Company was able to attain this quarter are no doubt impressive," said John Allison, Chairman. "This was the most profitable quarter in the Company's history, and it continues to be displayed through our reported improvements in our non-performing non-covered loans and assets and an improvement in our core efficiency. Our team continues to do an excellent job of controlling expenses. For example, excluding merger expenses we have a lower non-interest expense this quarter than a year ago even though we added 15 branch locations with the Vision transaction in the first quarter of 2012."

Randy Sims, Chief Executive Officer, added, "Home BancShares has once again reached the most profitable quarter in its history. The record earnings reported during the third quarter 2012 are $605,000 or 4% above Home BancShares' previously reported record earnings. We have once again reported strong reserves and capital levels for the Company, leaving us in a strong financial position for both FDIC and market acquisition transaction opportunities."

Operating Highlights

Net interest income for the third quarter of 2012 increased 8.2% to $38.6 million from $35.7 million during the third quarter of 2011. For the third quarter of 2012, the effective yield on non-covered loans and covered loans was 6.05% and 7.84%, respectively. Net interest margin, on a fully taxable equivalent basis, was 4.65% for the third quarter in a row.

The Company reported $10.6 million of non-interest income for the third quarter of 2012, compared to $10.0 million for the third quarter of 2011. The most significant components of the third quarter non-interest income were $3.8 million from service charges on deposits accounts, $3.1 million from other service charges and fees, $1.6 million from mortgage lending income, $512,000 from insurance commissions, $373,000 of accretion on the FDIC indemnification asset, $206,000 from gains on sale of SBA loans and $222,000 loss on sale of OREO.

Non-interest expense for the third quarter of 2012 was $24.0 million compared to $23.7 million for the third quarter of 2011. Excluding merger expenses, non-interest expense for the third quarter of 2012 was $23.7 million or $51,000 lower than during the third quarter of 2011. The new overhead from the Vision acquisition completed in the first quarter of 2012 has been offset through various expense reductions throughout the Company, such as advertising, FDIC assessments and cost savings associated with Vision. For the third quarter of 2012, our core efficiency ratio was 45.63% or improved by 368 basis points from the same period of the previous year.

Financial Condition

Total non-covered loans were $2.08 billion at September 30, 2012 compared to $1.76 billion at December 31, 2011. Total covered loans were $407.4 million at September 30, 2012 compared to $481.7 million at December 31, 2011. Total deposits were $3.13 billion at September 30, 2012 compared to $2.86 billion at December 31, 2011. Total assets were $3.89 billion at September 30, 2012 compared to $3.60 billion at December 31, 2011.

Non-performing non-covered loans were $22.6 million as of September 30, 2012, of which $14.0 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 1.09% as of September 30, 2012 compared to 1.56% as of December 31, 2011. Non-performing non-covered assets were $37.6 million as of September 30, 2012, of which $17.0 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 1.14% as of September 30, 2012 compared to the 1.53% reported for December 31, 2011.

The Company's allowance for loan losses for non-covered loans was $47.3 million at September 30, 2012, or 2.28% of total non-covered loans, compared to $52.1 million, or 2.96% of total non-covered loans, at December 31, 2011. As of September 30, 2012 and December 31, 2011, the allowance for loan losses for non-covered loans plus acquisition discount to total non-covered loans plus acquisition discount was 2.97% and 3.10%, respectively. As of September 30, 2012 and December 31, 2011, the Company's allowance for loan losses for non-covered loans was 209% and 190% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $510.0 million at September 30, 2012 compared to $474.1 million at December 31, 2011, an increase of $35.9 million. Book value per common share was $18.10 at September 30, 2012 compared to $16.77 at December 31, 2011.

Stock Repurchase Program

During the third quarter of 2012, the Company repurchased a total of 13,810 shares with a weighted average stock price of $32.46. For the first nine months of 2012, the Company repurchased a total of 252,044 shares with a weighted average stock price of $26.00. The Company believes the stock repurchased at these prices is an exceptional investment. The 2012 earnings were used to fund these repurchases.

Branches

Presently, the Company is evaluating opportunities but has no firm commitments for additional de novo branch locations. During the first part of July, the Company closed two branches acquired in the Vision acquisition. These branch closures were completed to eliminate repetitive branches and maximize profitability from the Vision transaction. After these closures the Company now has 47 branches in Arkansas, 46 branches in Florida and 8 branches in Alabama.

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, October 18, 2012. Interested parties can listen to this call by calling 1-877-317-6789 and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-344-7529, Passcode: 10018596, which will be available until October 29, 2012 at 8:00 a.m. CT (9:00 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 are included in its Annual Report on Form 10-K for the year ended December 31, 2011 filed with the Securities and Exchange Commission.

Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Our wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has locations in central Arkansas, north central Arkansas, southern Arkansas, the Florida Keys, southwestern Florida, central Florida, the Florida Panhandle and south Alabama. 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)
(In thousands) Sep. 30, 2012 Jun. 30, 2012 Mar. 31, 2012 Dec. 31, 2011 Sep. 30, 2011
ASSETS
Cash and due from banks $ 86,381 $ 71,078 $ 76,837 $ 57,337 $ 48,748
Interest-bearing deposits with other banks 69,248 287,452 269,401 126,967 104,053
Cash and cash equivalents 155,629 358,530 346,238 184,304 152,801
Federal funds sold 1,775 575 1,375 1,100 3,670
Investment securities - available for sale 755,197 712,820 759,959 671,221 610,522
Loans receivable not covered by loss share 2,076,248 2,035,487 2,046,108 1,760,086 1,826,373
Loans receivable covered by FDIC loss share 407,416 432,422 455,435 481,739 511,326
Allowance for loan losses (54,440) (56,511) (51,014) (52,129) (54,508)
Loans receivable, net 2,429,224 2,411,398 2,450,529 2,189,696 2,283,191
Bank premises and equipment, net 105,131 100,694 100,674 88,465 89,894
Foreclosed assets held for sale not covered by loss share 14,942 14,481 14,634 16,660 16,541
Foreclosed assets held for sale covered by FDIC loss share 31,799 35,008 39,744 35,178 32,183
FDIC indemnification asset 153,758 162,439 181,884 193,856 201,211
Cash value of life insurance 53,366 53,167 52,955 52,700 52,422
Accrued interest receivable 14,872 14,834 15,845 15,551 15,038
Deferred tax asset, net 33,680 31,115 34,680 22,850 21,998
Goodwill 77,090 77,090 77,090 59,663 59,663
Core deposit and other intangibles 9,792 10,486 11,180 8,620 9,325
Other assets 51,654 73,768 61,165 64,253 73,707
Total assets $ 3,887,909 $ 4,056,405 $ 4,147,952 $ 3,604,117 $ 3,622,166
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing $ 596,746 $ 597,374 $ 583,951 $ 464,581 $ 479,512
Savings and interest-bearing transaction accounts 1,527,829 1,521,869 1,514,812 1,189,098 1,143,335
Time deposits 1,007,894 1,174,286 1,281,636 1,204,352 1,262,202
Total deposits 3,132,469 3,293,529 3,380,399 2,858,031 2,885,049
Federal funds purchased -- -- -- -- --
Securities sold under agreements to repurchase 61,499 66,620 72,531 62,319 62,407
FHLB borrowed funds 130,506 140,523 142,753 142,777 142,901
Accrued interest payable and other liabilities 24,590 15,967 27,403 22,593 24,339
Subordinated debentures 28,867 44,331 44,331 44,331 44,331
Total liabilities 3,377,931 3,560,970 3,667,417 3,130,051 3,159,027
Stockholders' equity
Common stock 282 281 281 283 283
Capital surplus 420,595 420,538 421,006 425,649 425,852
Retained earnings 77,190 64,478 51,800 40,130 28,218
Accumulated other comprehensive income 11,911 10,138 7,448 8,004 8,786
Total stockholders' equity 509,978 495,435 480,535 474,066 463,139
Total liabilities and stockholders' equity $ 3,887,909 $ 4,056,405 $ 4,147,952 $ 3,604,117 $ 3,622,166
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended Nine Months Ended
(In thousands) Sep. 30, 2012 Jun. 30, 2012 Mar. 31, 2012 Dec. 31, 2011 Sep. 30, 2011 Sep. 30, 2012 Sep. 30, 2011
Interest income
Loans $ 39,285 $ 40,365 $ 38,506 $ 38,110 $ 39,199 $ 118,156 $ 117,844
Investment securities
Taxable 2,598 3,060 2,860 2,451 2,429 8,518 6,793
Tax-exempt 1,541 1,534 1,535 1,562 1,546 4,610 4,617
Deposits - other banks 115 127 85 87 84 327 331
Federal funds sold 3 3 2 2 1 8 9
Total interest income 43,542 45,089 42,988 42,212 43,259 131,619 129,594
Interest expense
Interest on deposits 3,288 4,164 4,660 5,084 5,638 12,112 17,884
Federal funds purchased -- -- -- -- -- -- --
FHLB borrowed funds 1,040 1,134 1,160 1,172 1,250 3,334 3,768
Securities sold under
agreements to repurchase 107 111 110 99 120 328 384
Subordinated debentures 482 521 524 540 539 1,527 1,620
Total interest expense 4,917 5,930 6,454 6,895 7,547 17,301 23,656
Net interest income 38,625 39,159 36,534 35,317 35,712 114,318 105,938
Provision for loan losses 167 1,333 -- 2,250 -- 1,500 1,250
Net interest income after
provision for loan losses 38,458 37,826 36,534 33,067 35,712 112,818 104,688
Non-interest income
Service charges on deposit accounts 3,834 3,668 3,505 3,659 3,638 11,007 10,428
Other service charges and fees 3,119 3,223 3,024 2,554 2,489 9,366 7,375
Mortgage lending income 1,550 1,277 904 904 783 3,731 2,089
Insurance commissions 512 438 551 351 428 1,501 1,505
Income from title services 112 129 88 121 126 329 327
Increase in cash value of life insurance 200 214 257 279 323 671 849
Dividends from FHLB, FRB & bankers' bank 182 175 175 174 184 532 506
Gain on sale of SBA loans 206 198 -- -- -- 404 259
Gain (loss) on sale of premises & equip, net (5) 359 -- (6) 6 354 79
Gain (loss) on OREO, net (222) 159 (107) 394 69 (170) (1,032)
Gain (loss) on securities, net -- (9) 19 2,243 5 10 5
FDIC indemnification accretion 373 449 670 903 1,314 1,492 4,614
Other income 765 773 1,017 606 595 2,555 2,123
Total non-interest income 10,626 11,053 10,103 12,182 9,960 31,782 29,127
Non-interest expense
Salaries and employee benefits 11,652 11,903 11,386 10,376 10,691 34,941 32,449
Occupancy and equipment 3,805 3,552 3,431 3,274 3,562 10,788 10,923
Data processing expense 1,137 1,371 1,091 994 1,185 3,599 3,607
Other operating expenses 7,387 7,598 8,478 8,625 8,298 23,463 24,474
Total non-interest expense 23,981 24,424 24,386 23,269 23,736 72,791 71,453
Income before income taxes 25,103 24,455 22,251 21,980 21,936 71,809 62,362
Income tax expense 9,008 8,965 7,753 7,813 7,624 25,726 21,788
Net income 16,095 15,490 14,498 14,167 14,312 46,083 40,574
Preferred stock dividends & accretion of
discount on preferred stock
-- -- -- -- 488 -- 1,828
Net income available to common
shareholders
$ 16,095 $ 15,490 $ 14,498 $ 14,167 $ 13,824 $ 46,083 $ 38,746
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter Ended Nine Months Ended
(Dollars and shares in thousands,
except per share data)
Sep. 30,
2012
Jun. 30,
2012
Mar. 31,
2012
Dec. 31,
2011
Sep. 30,
2011
Sep. 30,
2012
Sep. 30,
2011
PER SHARE DATA
Diluted earnings per common share $ 0.57 $ 0.55 $ 0.51 $ 0.50 $ 0.48 $ 1.63 $ 1.35
Diluted earnings per common share excluding
intangible amortization
0.58 0.57 0.52 0.51 0.50 1.67 1.40
Basic earnings per common share 0.58 0.55 0.51 0.50 0.48 1.64 1.36
Dividends per share - common 0.120 0.100 0.100 0.080 0.080 0.320 0.188
Book value per common share 18.10 17.64 17.11 16.77 16.39 18.10 16.39
Tangible book value per common share 15.01 14.53 13.96 14.35 13.95 15.01 13.95
STOCK INFORMATION
Average common shares outstanding 28,150 28,095 28,230 28,274 28,434 28,158 28,464
Average diluted shares outstanding 28,341 28,283 28,411 28,459 28,633 28,344 28,665
End of period common shares outstanding 28,181 28,079 28,091 28,276 28,259 28,181 28,259
ANNUALIZED PERFORMANCE METRICS
Return on average assets 1.61% 1.53% 1.52% 1.56% 1.56% 1.56% 1.48%
Return on average assets excluding
intangible amortization
1.69% 1.61% 1.60% 1.64% 1.64% 1.63% 1.55%
Return on average assets excluding intangible
amortization, provision for loan losses, merger
expenses and income taxes (Core ROA)
2.69% 2.67% 2.64% 2.81% 2.52% 1.67% 1.55%
Return on average common equity 12.78% 12.80% 12.21% 12.06% 12.00% 12.60% 11.67%
Return on average tangible common equity
excluding intangible amortization
15.88% 16.05% 15.03% 14.57% 14.59% 15.66% 14.32%
Efficiency ratio 46.24% 46.22% 49.75% 46.40% 49.23% 47.35% 50.09%
Core efficiency ratio 45.63% 46.87% 46.12% 48.76% 49.31% 46.21% 49.95%
Net interest margin - FTE 4.65% 4.65% 4.65% 4.73% 4.75% 4.65% 4.68%
Fully taxable equivalent adjustment $ 1,112 $ 1,126 $ 1,115 $ 1,130 $ 1,112 $ 3,353 $ 3,337
Total revenue 54,168 56,142 53,091 54,394 53,219 163,401 158,721
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to
common shareholders
$ 16,095 $ 15,490 $ 14,498 $ 14,167 $ 13,824 $ 46,083 $ 38,746
Intangible amortization after-tax 421 422 383 428 429 1,226 1,290
Earnings excluding intangible amortization $ 16,516 $ 15,912 $ 14,881 $ 14,595 $ 14,253 $ 47,309 $ 40,036
GAAP diluted earnings per share $ 0.57 $ 0.55 $ 0.51 $ 0.50 $ 0.48 $ 1.63 $ 1.35
Intangible amortization after-tax 0.01 0.02 0.01 0.01 0.02 0.04 0.05
Diluted earnings per share excluding
intangible amortization
$ 0.58 $ 0.57 $ 0.52 $ 0.51 $ 0.50 $ 1.67 $ 1.40
OTHER OPERATING EXPENSES
Advertising $ 534 $ 904 $ 460 $ 1,224 $ 1,033 $ 1,898 $ 3,046
Merger and acquisition expenses 296 -- 1,692 134 -- 1,988 11
Amortization of intangibles 694 694 630 705 705 2,018 2,122
Electronic banking expense 809 728 793 695 682 2,330 2,038
Directors' fees 206 193 212 217 230 611 594
Due from bank service charges 137 159 116 118 119 412 378
FDIC and state assessment 588 516 638 1,070 1,062 1,742 3,213
Insurance 448 424 401 447 447 1,273 1,226
Legal and accounting 231 287 322 327 367 840 1,276
Other professional fees 411 354 498 450 522 1,263 1,504
Operating supplies 280 291 264 297 260 835 871
Postage 219 240 221 212 243 680 730
Telephone 270 276 246 221 234 792 756
Other expense 2,264 2,532 1,985 2,508 2,394 6,781 6,709
Total other operating expenses $ 7,387 $ 7,598 $ 8,478 $ 8,625 $ 8,298 $ 23,463 $ 24,474
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
(Dollars in thousands) Sep. 30, 2012 Jun. 30, 2012 Mar. 31, 2012 Dec. 31, 2011 Sep. 30, 2011
BALANCE SHEET RATIOS
Total loans to total deposits 79.29% 74.93% 74.00% 78.44% 81.03%
Common equity to assets 13.1% 12.2% 11.6% 13.2% 12.8%
Tangible common equity to tangible assets 11.1% 10.3% 9.7% 11.5% 11.1%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period $ 49,846 $ 51,014 $ 52,129 $ 54,508 $ 56,784
Loans charged off 3,984 1,601 1,469 5,143 6,370
Recoveries of loans previously charged off 1,430 433 354 514 4,094
Net loans charged off 2,554 1,168 1,115 4,629 2,276
Provision for loan losses -- -- -- 2,250 --
Balance, end of period $ 47,292 $ 49,846 $ 51,014 $ 52,129 $ 54,508
Discount on non-covered loans acquired 14,712 16,112 17,154 2,513 3,596
Net charge-offs on loans not covered by loss share
to average non-covered loans
0.50% 0.23% 0.23% 1.02% 0.50%
Allowance for loan losses for non-covered loans
to total non-covered loans
2.28% 2.45% 2.49% 2.96% 2.98%
Allowance for loan losses for non-covered loans plus
acquisition discount to total non-covered loans plus
acquisition discount
2.97% 3.21% 3.30% 3.10% 3.18%
Covered
Balance, beginning of period $ 6,665 $ -- $ -- $ -- $ --
Loans charged off 354 -- -- -- --
Recoveries of loans previously charged off -- -- -- -- --
Net loans charged off 354 -- -- -- --
Provision for loan losses before benefit attributable
to FDIC loss share agreements
837 6,665 -- -- --
Benefit attributable to FDIC loss share agreements (670) (5,332) -- -- --
Net provision for loan losses 167 1,333 -- -- --
Increase in FDIC indemnificaton asset 670 5,332 -- -- --
Balance, end of period $ 7,148 $ 6,665 $ -- $ -- $ --
Total Allowance for Loan Losses $ 54,440 $ 56,511 $ 51,014 $ 52,129 $ 54,508
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans $ 20,183 $ 24,810 $ 27,425 $ 26,496 $ 25,373
Non-covered loans past due 90 days or more 2,424 1,326 289 993 2,481
Total non-performing non-covered loans 22,607 26,136 27,714 27,489 27,854
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 14,942 14,481 14,634 16,660 16,541
Other non-performing non-covered assets 1 79 71 8 222
Total other non-performing non-covered assets 14,943 14,560 14,705 16,668 16,763
Total non-performing non-covered assets $ 37,550 $ 40,696 $ 42,419 $ 44,157 $ 44,617
Allowance for loan losses for non-covered loans to non--
performing non-covered loans
209.19% 190.72% 184.07% 189.64% 195.69%
Non-performing non-covered loans to total
non-covered loans
1.09% 1.28% 1.35% 1.56% 1.53%
Non-performing non-covered assets to total
non-covered assets
1.14% 1.19% 1.22% 1.53% 1.55%
Home BancShares, Inc.
Loan Information
(Unaudited)
(Dollars in thousands) Sep. 30, 2012 Jun. 30, 2012 Mar. 31, 2012 Dec. 31, 2011 Sep. 30, 2011
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 887,895 $ 856,334 $ 780,520 $ 698,986 $ 744,749
Construction/land development 282,269 269,371 413,093 361,846 366,926
Agricultural 28,403 28,570 28,120 28,535 26,683
Residential real estate loans
Residential 1-4 family 473,412 481,018 471,439 349,543 353,110
Multifamily residential 105,369 106,206 65,226 56,909 59,974
Total real estate 1,777,348 1,741,499 1,758,398 1,495,819 1,551,442
Consumer 35,433 37,146 38,254 37,923 40,225
Commercial and industrial 200,160 197,278 196,165 176,276 170,695
Agricultural 36,239 31,741 21,275 21,784 35,238
Other 27,068 27,823 32,016 28,284 28,773
Loans receivable not covered by loss share $ 2,076,248 $ 2,035,487 $ 2,046,108 $ 1,760,086 $ 1,826,373
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 175,195 $ 187,802 $ 179,360 $ 189,380 $ 189,558
Construction/land development 71,958 74,989 99,996 103,535 117,143
Agricultural 2,289 2,737 3,092 3,155 3,413
Residential real estate loans
Residential 1-4 family 130,425 136,498 139,819 148,692 158,701
Multifamily residential 10,062 10,216 9,077 8,933 9,010
Total real estate 389,929 412,242 431,344 453,695 477,825
Consumer 70 71 549 334 454
Commercial and industrial 16,878 19,541 22,843 26,884 32,183
Agricultural -- -- -- -- --
Other 539 568 699 826 864
Loans receivable covered by loss share $ 407,416 $ 432,422 $ 455,435 $ 481,739 $ 511,326
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
September 30, 2012 June 30, 2012
(Dollars in thousands) Average Balance Income/ Expense Yield/Rate Average Balance Income/Expense Yield/Rate
ASSETS
Earning assets
Interest-bearing balances due from banks $ 192,192 $ 115 0.24% $ 222,822 $ 127 0.23%
Federal funds sold 3,749 3 0.32% 6,875 3 0.18%
Investment securities - taxable 573,083 2,598 1.80% 599,585 3,060 2.05%
Investment securities - non-taxable - FTE 160,252 2,512 6.24% 155,317 2,498 6.47%
Loans receivable - FTE 2,468,151 39,426 6.35% 2,501,464 40,527 6.52%
Total interest-earning assets 3,397,427 44,654 5.23% 3,486,063 46,215 5.33%
Non-earning assets 578,519 586,198
Total assets $ 3,975,946 $ 4,072,261
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 1,523,346 $ 774 0.20% $ 1,519,151 $ 1,003 0.27%
Time deposits 1,095,268 2,514 0.91% 1,228,764 3,161 1.03%
Total interest-bearing deposits 2,618,614 3,288 0.50% 2,747,915 4,164 0.61%
Federal funds purchased 15 -- 0.00% 303 -- 0.00%
Securities sold under agreement to repurchase 64,779 107 0.66% 71,485 111 0.62%
FHLB borrowed funds 131,599 1,040 3.14% 140,577 1,134 3.24%
Subordinated debentures 41,978 482 4.57% 44,331 521 4.73%
Total interest-bearing liabilities 2,856,985 4,917 0.68% 3,004,611 5,930 0.79%
Non-interest bearing liabilities
Non-interest bearing deposits 597,287 559,554
Other liabilities 20,695 21,445
Total liabilities 3,474,967 3,585,610
Shareholders' equity 500,979 486,651
Total liabilities and shareholders' equity $ 3,975,946 $ 4,072,261
Net interest spread 4.55% 4.54%
Net interest income and margin - FTE $ 39,737 4.65% $ 40,285 4.65%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Nine Months Ended
September 30, 2012 September 30, 2011
(Dollars in thousands) Average Balance Income/Expense Yield/Rate Average Balance Income/Expense Yield/Rate
ASSETS
Earning assets
Interest-bearing balances due from banks $ 188,874 $ 327 0.23% $ 188,456 $ 331 0.23%
Federal funds sold 4,527 8 0.24% 6,735 9 0.18%
Investment securities - taxable 580,492 8,518 1.96% 382,011 6,793 2.38%
Investment securities - non-taxable - FTE 155,636 7,505 6.44% 150,587 7,480 6.64%
Loans receivable - FTE 2,451,553 118,614 6.46% 2,392,102 118,318 6.61%
Total interest-earning assets 3,381,082 134,972 5.33% 3,119,891 132,931 5.70%
Non-earning assets 577,227 555,009
Total assets $ 3,958,309 $ 3,674,900
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 1,457,121 $ 2,788 0.26% $ 1,120,279 $ 4,045 0.48%
Time deposits 1,188,074 9,324 1.05% 1,346,247 13,839 1.37%
Total interest-bearing deposits 2,645,195 12,112 0.61% 2,466,526 17,884 0.97%
Federal funds purchased 232 -- 0.00% -- -- 0.00%
Securities sold under agreement to repurchase 68,425 328 0.64% 68,601 384 0.75%
FHLB borrowed funds 138,288 3,334 3.22% 152,619 3,768 3.30%
Subordinated debentures 43,541 1,527 4.68% 44,331 1,620 4.89%
Total interest-bearing liabilities 2,895,681 17,301 0.80% 2,732,077 23,656 1.16%
Non-interest bearing liabilities
Non-interest bearing deposits 551,628 437,964
Other liabilities 22,563 27,385
Total liabilities 3,469,872 3,197,426
Shareholders' equity 488,437 477,474
Total liabilities and shareholders' equity $ 3,958,309 $ 3,674,900
Net interest spread 4.53% 4.54%
Net interest income and margin - FTE $ 117,671 4.65% $ 109,275 4.68%
CONTACT: Brian S. Davis Chief Accounting Officer & Investor Relations Officer Home BancShares, Inc. (501) 328-4770Source:Home BancShares, Inc.