×

Home BancShares, Inc. Announces Record Net Income of $63.0 Million for 2012

CONWAY, Ark., Jan. 17, 2013 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced record net income for the year ended December 31, 2012 of $63.0 million compared to $54.7 million for the year ended 2011. Diluted earnings per share for the year ended 2012 were $2.23 per share compared to $1.85 per share for 2011, an increase of $0.38 per share or 20.5%.

For the fourth quarter of 2012, the Company recorded record quarterly net income of $16.9 million, or $0.60 diluted earnings per common share, compared to $14.2 million of net income, or $0.50 diluted earnings per common share for the same quarter in 2011, an increase of $0.10 per share or 20.0%.

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 fourth quarter of 2012 was $0.62 compared to $0.51 diluted earnings per common share excluding intangible amortization for the same period in 2011.

"The record net income reported for 2012 is an exceptional achievement for our Company," said John Allison, Chairman. "The hard work this year to expand earnings was successful. Not only did we reach annual record earnings during 2012, but we also achieved record earnings each quarter consecutively during the year. Throughout the year, we continued to keep our traditionally strong capital levels considerably above the regulators' capital requirements. It is possible, therefore, to remain in a position to benefit from opportunistic deals as they are presented."

Randy Sims, Chief Executive Officer, added, "This quarter the Company increased its earnings above our previously recorded record earnings by $844,000 or 5.2%. During the fourth quarter of 2012, we improved our net interest margin 13 basis points when compared to the fourth quarter of 2011. The achievements reached during 2012 are no doubt impressive and encouraging for the year ahead."

Operating Highlights

Net interest income for the fourth quarter of 2012 increased 16.9% to $41.3 million from $35.3 million during the fourth quarter of 2011. For the fourth quarter of 2012, the effective yield on non-covered loans and covered loans was 6.03% and 7.83%, respectively. Net interest margin, on a fully taxable equivalent basis, was 4.86% for the quarter just ended compared to 4.73% in the fourth quarter of 2011, an increase of 13 basis points. The Company's ability to improve pricing on interest bearing deposits and hold the changes of interest rates on loans to a minimum allowed the Company to improve net interest margin.

The Company reported $16.2 million of non-interest income for the fourth quarter of 2012, compared to $12.2 million for the fourth quarter of 2011. The most important components of the fourth quarter non-interest income were $5.2 million from gain on acquisition, $4.1 million from service charges on deposits accounts, $3.1 million from other service charges and fees, $1.5 million from mortgage lending income, $635,000 in dividends, $368,000 from insurance commissions, $229,000 of accretion on the FDIC indemnification asset and $121,000 gain on sale of OREO. The $635,000 in dividends includes a non-recurring dividend of approximately $463,000 from our investment in a private equity and venture capital firm which invests in small and lower middle market companies located in Arkansas and across the Midwest and Southeast United States.

Non-interest expense for the fourth quarter of 2012 was $29.6 million compared to $23.3 million for the fourth quarter of 2011. Excluding merger expenses, non-interest expense only increased 5.5% when compared to 17.7% in asset growth. For the fourth quarter of 2012, our core efficiency ratio was 44.40% or improved by 436 basis points from the same period of the previous year.

Financial Condition

Total non-covered loans were $2.33 billion at December 31, 2012 compared to $1.76 billion at December 31, 2011. Total covered loans were $384.9 million at December 31, 2012 compared to $481.7 million at December 31, 2011. Total deposits were $3.48 billion at December 31, 2012 compared to $2.86 billion at December 31, 2011. Total assets were $4.24 billion at December 31, 2012 compared to $3.60 billion at December 31, 2011.

Non-performing non-covered loans were $27.3 million as of December 31, 2012, of which $15.2 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 1.17% as of December 31, 2012 compared to 1.56% as of December 31, 2011. Non-performing non-covered assets were $47.8 million as of December 31, 2012, of which $23.2 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 1.30% as of December 31, 2012 compared to the 1.53% reported for December 31, 2011.

The Company's allowance for loan losses for non-covered loans was $45.2 million at December 31, 2012, or 1.94% of total non-covered loans, compared to $52.1 million, or 2.96% of total non-covered loans, at December 31, 2011. As of December 31, 2012 and December 31, 2011, 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 5.26% and 3.10%, respectively. As of December 31, 2012 and December 31, 2011, the Company's allowance for loan losses for non-covered loans was 166% and 190% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $515.5 million at December 31, 2012 compared to $474.1 million at December 31, 2011, an increase of $41.4 million. Book value per common share was $18.34 at December 31, 2012 compared to $16.77 at December 31, 2011.

Stock Repurchase Program

During the fourth quarter of 2012, the Company repurchased a total of 203,404 shares with a weighted average stock price of $34.33. For 2012, the Company repurchased a total of 455,448 shares with a weighted average stock price of $29.72. The Company believes the stock repurchased at these prices is a good 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 December, the Company closed two branches acquired in the Vision acquisition—one in Florida and one in Alabama. These branch closures were completed to eliminate repetitive branches and maximize profitability from the Vision transaction. During the first part of January 2013, one branch in south Arkansas was closed. It is anticipated three to four branches will close in the Tallahassee, FL area early in the second quarter of 2013. The Company currently has 46 branches in Arkansas, 54 branches in Florida and 7 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, January 17, 2013. 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: 10022263, which will be available until January 25, 2013 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)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(In thousands) 2012 2012 2012 2012 2011
ASSETS
Cash and due from banks $ 101,972 $ 86,381 $ 71,078 $ 76,837 $ 57,337
Interest-bearing deposits with other banks 129,883 69,248 287,452 269,401 126,967
Cash and cash equivalents 231,855 155,629 358,530 346,238 184,304
Federal funds sold 17,148 1,775 575 1,375 1,100
Investment securities - available for sale 726,223 755,197 712,820 759,959 671,221
Loans receivable not covered by loss share 2,331,199 2,076,248 2,035,487 2,046,108 1,760,086
Loans receivable covered by FDIC loss share 384,884 407,416 432,422 455,435 481,739
Allowance for loan losses (50,632) (54,440) (56,511) (51,014) (52,129)
Loans receivable, net 2,665,451 2,429,224 2,411,398 2,450,529 2,189,696
Bank premises and equipment, net 113,883 105,131 100,694 100,674 88,465
Foreclosed assets held for sale not covered by loss share 20,393 14,942 14,481 14,634 16,660
Foreclosed assets held for sale covered by FDIC loss share 31,526 31,799 35,008 39,744 35,178
FDIC indemnification asset 139,646 153,758 162,439 181,884 193,856
Cash value of life insurance 59,219 53,366 53,167 52,955 52,700
Accrued interest receivable 16,305 14,872 14,834 15,845 15,551
Deferred tax asset, net 46,998 33,680 31,115 34,680 22,850
Goodwill 85,681 77,090 77,090 77,090 59,663
Core deposit and other intangibles 12,061 9,792 10,486 11,180 8,620
Other assets 75,741 51,654 73,768 61,165 64,253
Total assets $ 4,242,130 $ 3,887,909 $ 4,056,405 $ 4,147,952 $ 3,604,117
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing $ 666,414 $ 596,746 $ 597,374 $ 583,951 $ 464,581
Savings and interest-bearing transaction accounts 1,784,047 1,527,829 1,521,869 1,514,812 1,189,098
Time deposits 1,032,991 1,007,894 1,174,286 1,281,636 1,204,352
Total deposits 3,483,452 3,132,469 3,293,529 3,380,399 2,858,031
Federal funds purchased -- -- -- -- --
Securities sold under agreements to repurchase 66,278 61,499 66,620 72,531 62,319
FHLB borrowed funds 130,388 130,506 140,523 142,753 142,777
Accrued interest payable and other liabilities 17,672 24,590 15,967 27,403 22,593
Subordinated debentures 28,867 28,867 44,331 44,331 44,331
Total liabilities 3,726,657 3,377,931 3,560,970 3,667,417 3,130,051
Stockholders' equity
Common stock 281 282 281 281 283
Capital surplus 416,354 420,595 420,538 421,006 425,649
Retained earnings 86,837 77,190 64,478 51,800 40,130
Accumulated other comprehensive income 12,001 11,911 10,138 7,448 8,004
Total stockholders' equity 515,473 509,978 495,435 480,535 474,066
Total liabilities and stockholders' equity $ 4,242,130 $ 3,887,909 $ 4,056,405 $ 4,147,952 $ 3,604,117
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) 2012 2012 2012 2012 2011 2012 2011
Interest income
Loans $ 41,203 $ 39,285 $ 40,365 $ 38,506 $ 38,110 $ 159,359 $ 155,954
Investment securities
Taxable 2,708 2,598 3,060 2,860 2,451 11,226 9,244
Tax-exempt 1,544 1,541 1,534 1,535 1,562 6,154 6,179
Deposits - other banks 52 115 127 85 87 379 418
Federal funds sold 9 3 3 2 2 17 11
Total interest income 45,516 43,542 45,089 42,988 42,212 177,135 171,806
Interest expense
Interest on deposits 2,877 3,288 4,164 4,660 5,084 14,989 22,968
Federal funds purchased 1 -- -- -- -- 1 --
FHLB borrowed funds 1,030 1,040 1,134 1,160 1,172 4,364 4,940
Securities sold under agreements to repurchase 79 107 111 110 99 407 483
Subordinated debentures 247 482 521 524 540 1,774 2,160
Total interest expense 4,234 4,917 5,930 6,454 6,895 21,535 30,551
Net interest income 41,282 38,625 39,159 36,534 35,317 155,600 141,255
Provision for loan losses 1,250 167 1,333 -- 2,250 2,750 3,500
Net interest income after provision for loan losses 40,032 38,458 37,826 36,534 33,067 152,850 137,755
Non-interest income
Service charges on deposit accounts 4,062 3,834 3,668 3,505 3,659 15,069 14,087
Other service charges and fees 3,062 3,119 3,223 3,024 2,554 12,428 9,929
Mortgage lending income 1,461 1,550 1,277 904 904 5,192 2,993
Insurance commissions 368 512 438 551 351 1,869 1,856
Income from title services 133 112 129 88 121 462 448
Increase in cash value of life insurance 202 200 214 257 279 873 1,128
Dividends from FHLB, FRB, bankers' bank & other 635 182 175 175 174 1,167 680
Gain on acquisitions 5,205 -- -- -- -- 5,205 --
Gain on sale of SBA loans -- 206 198 -- -- 404 259
Gain (loss) on sale of premises & equip, net (30) (5) 359 -- (6) 324 73
Gain (loss) on OREO, net 121 (222) 159 (107) 394 (49) (638)
Gain (loss) on securities, net (1) -- (9) 19 2,243 9 2,248
FDIC indemnification accretion 229 373 449 670 903 1,721 5,517
Other income 740 765 773 1,017 606 3,295 2,729
Total non-interest income 16,187 10,626 11,053 10,103 12,182 47,969 41,309
Non-interest expense
Salaries and employee benefits 12,348 11,652 11,903 11,386 10,376 47,289 42,825
Occupancy and equipment 3,712 3,805 3,552 3,431 3,274 14,500 14,197
Data processing expense 1,331 1,137 1,371 1,091 994 4,930 4,601
Other operating expenses 12,186 7,387 7,598 8,478 8,625 35,649 33,099
Total non-interest expense 29,577 23,981 24,424 24,386 23,269 102,368 94,722
Income before income taxes 26,642 25,103 24,455 22,251 21,980 98,451 84,342
Income tax expense 9,703 9,008 8,965 7,753 7,813 35,429 29,601
Net income 16,939 16,095 15,490 14,498 14,167 63,022 54,741
Preferred stock dividends & accretion of discount on preferred stock -- -- -- -- -- -- 1,828
Net income available to common shareholders $ 16,939 $ 16,095 $ 15,490 $ 14,498 $ 14,167 $ 63,022 $ 52,913
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) 2012 2012 2012 2012 2011 2012 2011
PER SHARE DATA
Diluted earnings per common share $ 0.60 $ 0.57 $ 0.55 $ 0.51 $ 0.50 $ 2.23 $ 1.85
Diluted earnings per common share excluding intangible amortization 0.62 0.58 0.57 0.52 0.51 2.29 1.91
Basic earnings per common share 0.60 0.58 0.55 0.51 0.50 2.24 1.86
Dividends per share - common 0.260 0.120 0.100 0.100 0.080 0.580 0.268
Book value per common share 18.34 18.10 17.64 17.11 16.77 18.34 16.77
Tangible book value per common share 14.86 15.01 14.53 13.96 14.35 14.86 14.35
STOCK INFORMATION
Average common shares outstanding 28,073 28,150 28,095 28,230 28,274 28,137 28,416
Average diluted shares outstanding 28,244 28,341 28,283 28,411 28,459 28,315 28,612
End of period common shares outstanding 28,107 28,181 28,079 28,091 28,276 28,107 28,276
ANNUALIZED PERFORMANCE METRICS
Return on average assets 1.67% 1.61% 1.53% 1.52% 1.56% 1.58% 1.50%
Return on average assets excluding intangible amortization 1.75% 1.69% 1.61% 1.60% 1.64% 1.66% 1.57%
Return on average assets excluding intangible amortization, provision for loan losses, merger expenses, bargain purchase gain and income taxes (Core ROA) 2.88% 2.69% 2.67% 2.64% 2.81% 2.72% 2.53%
Return on average common equity 13.19% 12.78% 12.80% 12.21% 12.06% 12.75% 11.77%
Return on average tangible common equity excluding intangible amortization 16.46% 15.88% 16.05% 15.03% 14.57% 15.87% 14.39%
Efficiency ratio 49.21% 46.24% 46.22% 49.75% 46.40% 47.88% 49.13%
Core efficiency ratio 44.40% 45.63% 46.87% 46.12% 48.76% 45.73% 49.65%
Net interest margin - FTE 4.86% 4.65% 4.65% 4.65% 4.73% 4.70% 4.69%
Fully taxable equivalent adjustment $ 1,122 $ 1,112 $ 1,126 $ 1,115 $ 1,130 $ 4,475 $ 4,467
Total revenue 61,703 54,168 56,142 53,091 54,394 225,104 213,115
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to common shareholders $ 16,939 $ 16,095 $ 15,490 $ 14,498 $ 14,167 $ 63,022 $ 52,913
Intangible amortization after-tax 452 421 422 383 428 1,678 1,718
Earnings excluding intangible amortization $ 17,391 $ 16,516 $ 15,912 $ 14,881 $ 14,595 $ 64,700 $ 54,631
GAAP diluted earnings per share $ 0.60 $ 0.57 $ 0.55 $ 0.51 $ 0.50 $ 2.23 $ 1.85
Intangible amortization after-tax 0.02 0.01 0.02 0.01 0.01 0.06 0.06
Diluted earnings per share excluding intangible amortization $ 0.62 $ 0.58 $ 0.57 $ 0.52 $ 0.51 $ 2.29 $ 1.91
OTHER OPERATING EXPENSES
Advertising $ 549 $ 534 $ 904 $ 460 $ 1,224 $ 2,447 $ 4,270
Merger and acquisition expenses 5,169 296 -- 1,692 134 7,157 145
Amortization of intangibles 743 694 694 630 705 2,761 2,827
Electronic banking expense 845 809 728 793 695 3,175 2,733
Directors' fees 196 206 193 212 217 807 811
Due from bank service charges 124 137 159 116 118 536 496
FDIC and state assessment 571 588 516 638 1,070 2,313 4,283
Insurance 501 448 424 401 447 1,774 1,673
Legal and accounting 225 231 287 322 327 1,065 1,603
Other professional fees 392 411 354 498 450 1,655 1,954
Operating supplies 299 280 291 264 297 1,134 1,168
Postage 216 219 240 221 212 896 942
Telephone 282 270 276 246 221 1,074 977
Other expense 2,074 2,264 2,532 1,985 2,508 8,855 9,217
Total other operating expenses $ 12,186 $ 7,387 $ 7,598 $ 8,478 $ 8,625 $ 35,649 $ 33,099
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(Dollars in thousands) 2012 2012 2012 2012 2011
BALANCE SHEET RATIOS
Total loans to total deposits 77.97% 79.29% 74.93% 74.00% 78.44%
Common equity to assets 12.2% 13.1% 12.2% 11.6% 13.2%
Tangible common equity to tangible assets 10.1% 11.1% 10.3% 9.7% 11.5%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period $ 47,292 $ 49,846 $ 51,014 $ 52,129 $ 54,508
Loans charged off 3,739 3,984 1,601 1,469 5,143
Recoveries of loans previously charged off 367 1,430 433 354 514
Net loans charged off 3,372 2,554 1,168 1,115 4,629
Provision for loan losses 1,250 -- -- -- 2,250
Balance, end of period $ 45,170 $ 47,292 $ 49,846 $ 51,014 $ 52,129
Discount for credit losses on non-covered loans acquired 81,717 14,712 16,112 17,154 2,513
Net charge-offs on loans not covered by loss share to average non-covered loans 0.61% 0.50% 0.23% 0.23% 1.02%
Allowance for loan losses for non-covered loans to total non-covered loans 1.94% 2.28% 2.45% 2.49% 2.96%
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 5.26% 2.97% 3.21% 3.30% 3.10%
Covered
Balance, beginning of period $ 7,148 $ 6,665 $ -- $ -- $ --
Loans charged off 1,688 354 -- -- --
Recoveries of loans previously charged off 2 -- -- -- --
Net loans charged off 1,686 354 -- -- --
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 indemnification asset -- 670 5,332 -- --
Balance, end of period $ 5,462 $ 7,148 $ 6,665 $ -- $ --
Total Allowance for Loan Losses $ 50,632 $ 54,440 $ 56,511 $ 51,014 $ 52,129
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans $ 21,336 $ 20,183 $ 24,810 $ 27,425 $ 26,496
Non-covered loans past due 90 days or more 5,937 2,424 1,326 289 993
Total non-performing non-covered loans 27,273 22,607 26,136 27,714 27,489
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 20,393 14,942 14,481 14,634 16,660
Other non-performing non-covered assets 164 1 79 71 8
Total other non-performing non-covered assets 20,557 14,943 14,560 14,705 16,668
Total non-performing non-covered assets $ 47,830 $ 37,550 $ 40,696 $ 42,419 $ 44,157
Allowance for loan losses for non-covered loans to non-performing non-covered loans 165.62% 209.19% 190.72% 184.07% 189.64%
Non-performing non-covered loans to total non-covered loans 1.17% 1.09% 1.28% 1.35% 1.56%
Non-performing non-covered assets to total non-covered assets 1.30% 1.14% 1.19% 1.22% 1.53%
Home BancShares, Inc.
Loan Information
(Unaudited)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(Dollars in thousands) 2012 2012 2012 2012 2011
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 1,019,039 $ 887,895 $ 856,334 $ 780,520 $ 698,986
Construction/land development 254,800 282,269 269,371 413,093 361,846
Agricultural 32,513 28,403 28,570 28,120 28,535
Residential real estate loans
Residential 1-4 family 549,269 473,412 481,018 471,439 349,543
Multifamily residential 129,742 105,369 106,206 65,226 56,909
Total real estate 1,985,363 1,777,348 1,741,499 1,758,398 1,495,819
Consumer 37,462 35,433 37,146 38,254 37,923
Commercial and industrial 256,908 200,160 197,278 196,165 176,276
Agricultural 19,825 36,239 31,741 21,275 21,784
Other 31,641 27,068 27,823 32,016 28,284
Loans receivable not covered by loss share $ 2,331,199 $ 2,076,248 $ 2,035,487 $ 2,046,108 $ 1,760,086
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 164,723 $ 175,195 $ 187,802 $ 179,360 $ 189,380
Construction/land development 66,713 71,958 74,989 99,996 103,535
Agricultural 2,282 2,289 2,737 3,092 3,155
Residential real estate loans
Residential 1-4 family 125,625 130,425 136,498 139,819 148,692
Multifamily residential 9,567 10,062 10,216 9,077 8,933
Total real estate 368,910 389,929 412,242 431,344 453,695
Consumer 39 70 71 549 334
Commercial and industrial 14,668 16,878 19,541 22,843 26,884
Agricultural -- -- -- -- --
Other 1,267 539 568 699 826
Loans receivable covered by loss share $ 384,884 $ 407,416 $ 432,422 $ 455,435 $ 481,739
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
December 31, 2012 September 30, 2012
Average Income/ Yield/ Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate Balance Expense Rate
ASSETS
Earning assets
Interest-bearing balances due from banks $ 97,308 $ 51 0.21% $ 192,192 $ 115 0.24%
Federal funds sold 15,061 9 0.24% 3,749 3 0.32%
Investment securities - taxable 581,840 2,708 1.85% 573,083 2,598 1.80%
Investment securities - non-taxable - FTE 165,957 2,518 6.04% 160,252 2,512 6.24%
Loans receivable - FTE 2,608,090 41,351 6.31% 2,468,151 39,426 6.35%
Total interest-earning assets 3,468,256 46,637 5.35% 3,397,427 44,654 5.23%
Non-earning assets 571,264 578,519
Total assets $ 4,039,520 $ 3,975,946
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 1,632,053 $ 784 0.19% $ 1,523,346 $ 774 0.20%
Time deposits 1,028,938 2,093 0.81% 1,095,268 2,514 0.91%
Total interest-bearing deposits 2,660,991 2,877 0.43% 2,618,614 3,288 0.50%
Federal funds purchased 392 -- 0.00% 15 -- 0.00%
Securities sold under agreement to repurchase 62,913 79 0.50% 64,779 107 0.66%
FHLB borrowed funds 130,427 1,030 3.14% 131,599 1,040 3.14%
Subordinated debentures 28,867 247 3.40% 41,978 482 4.57%
Total interest-bearing liabilities 2,883,590 4,233 0.58% 2,856,985 4,917 0.68%
Non-interest bearing liabilities
Non-interest bearing deposits 620,806 597,287
Other liabilities 24,089 20,695
Total liabilities 3,528,485 3,474,967
Shareholders' equity 511,035 500,979
Total liabilities and shareholders' equity $ 4,039,520 $ 3,975,946
Net interest spread 4.77% 4.55%
Net interest income and margin - FTE $ 42,404 4.86% $ 39,737 4.65%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Year Ended
December 31, 2012 December 31, 2011
Average Income/ Yield/ Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate Balance Expense Rate
ASSETS
Earning assets
Interest-bearing balances due from banks $ 165,862 $ 379 0.23% $ 178,476 $ 418 0.23%
Federal funds sold 7,175 17 0.24% 5,735 11 0.19%
Investment securities - taxable 580,826 11,226 1.93% 400,152 9,244 2.31%
Investment securities - non-taxable - FTE 158,231 10,023 6.33% 150,776 10,017 6.64%
Loans receivable - FTE 2,490,901 159,965 6.42% 2,369,216 156,583 6.61%
Total interest-earning assets 3,402,995 181,610 5.34% 3,104,355 176,273 5.68%
Non-earning assets 575,728 553,901
Total assets $ 3,978,723 $ 3,658,256
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 1,501,093 $ 3,572 0.24% $ 1,132,798 $ 5,084 0.45%
Time deposits 1,148,072 11,417 0.99% 1,318,868 17,884 1.36%
Total interest-bearing deposits 2,649,165 14,989 0.57% 2,451,666 22,968 0.94%
Federal funds purchased 273 1 0.37% 12 -- 0.00%
Securities sold under agreement to repurchase 67,040 407 0.61% 66,851 4,940 7.39%
FHLB borrowed funds 136,312 4,364 3.20% 150,146 483 0.32%
Subordinated debentures 39,852 1,774 4.45% 44,331 2,160 4.87%
Total interest-bearing liabilities 2,892,642 21,535 0.74% 2,713,006 30,551 1.13%
Non-interest bearing liabilities
Non-interest bearing deposits 569,017 443,781
Other liabilities 22,946 26,870
Total liabilities 3,484,605 3,183,657
Shareholders' equity 494,118 474,599
Total liabilities and shareholders' equity $ 3,978,723 $ 3,658,256
Net interest spread 4.60% 4.55%
Net interest income and margin - FTE $ 160,075 4.70% $ 145,722 4.69%

CONTACT: Brian S. Davis Chief Accounting Officer & Investor Relations Officer Home BancShares, Inc. (501) 328-4770Source:Home BancShares, Inc.