Home BancShares, Inc. Announces Record Quarterly Net Income of $17.5 Million

CONWAY, Ark., April 18, 2013 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced first quarter net income of $17.5 million, or $0.62 diluted earnings per common share, compared to $14.5 million of net income, or $0.51 diluted earnings per common share for the same quarter in 2012. The Company increased its first quarter earnings by $3.1 million or 21.0% for the three months ended March 31, 2013 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 first quarter of 2013 was $0.64 compared to $0.52 diluted earnings per common share excluding intangible amortization for the same period in 2012.

"This is the eighth consecutive quarter we have reported the most profitable quarter in the Company's history," said John Allison, Chairman. "The Company has demonstrated an improvement in our non-performing non-covered loans and assets this quarter plus a very impressive return on average assets of 1.70% for the first quarter of 2013. We continue to remain strong in our capital levels, which are considerably above the regulators' capital requirements. These strong reserves place us in a position to benefit from both FDIC and market acquisition transaction opportunities as they are presented."

Randy Sims, Chief Executive Officer, added, "The record net income reported for the first quarter is an outstanding accomplishment for our Company. This quarter the Company increased its earnings above our previously recorded record earnings by $609,000 or 3.6%. We improved our net interest margin 50 basis points during the first quarter of 2013 when compared to the first quarter of 2012."

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 first quarter 2013 impairment testing, five FDIC loss sharing pools evaluated by the Company were determined to have a materially projected credit improvement. As a result of this improvement, the Company will recognize approximately $15.6 million as an adjustment to yield over the weighted average life of the loans ($2.2 million was recognized during the first quarter of 2013). Improvements in credit quality decrease the basis in the related indemnification asset and increase our FDIC true up liability. This positive event will reduce the indemnification asset by approximately $12.5 million ($2.1 was recognized for the first quarter of 2013) and increase our FDIC true-up liability by $1.6 million ($57,000 was recognized for the first quarter of 2013). The $12.5 million will be amortized over the weighted average life of the shared-loss agreement. This amortization will be shown as a reduction to FDIC indemnification non-interest income. The $1.6 million will be expensed over the remaining true-up measurement date as other non-interest expense. In October 2012, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2012-06, Business Combinations (Topic 805): "Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution". ASU 2012-06 did not impact or change the first quarter 2013 impairment tests or results; the Company was already following the guidance provided for in this new standard.

Net interest income for the first quarter of 2013 increased 21.4% to $44.3 million from $36.5 million during the first quarter of 2012. For the first quarter of 2013, the effective yield on non-covered loans and covered loans was 6.11% and 10.30%, respectively. Excluding the $2.2 million of additional yield for first quarter, the pro-forma effective yield on covered loans was 7.94%. Net interest margin, on a fully taxable equivalent basis, was 5.15% for the quarter just ended compared to 4.65% in the first quarter of 2012, an increase of 50 basis points. When adjusted for the previously discussed $2.2 million, net interest margin, on a fully taxable equivalent basis, was 4.91% for the quarter just ended compared to 4.65% in the first quarter of 2012, an increase of 26 basis points. The Company was able to expand its net interest margin because of its ability to improve pricing on interest bearing deposits combined with additional yield on FDIC loss sharing loans which more than offset the lower interest rates on newly originated loans in the loan portfolio during this historically low rate environment.

The Company reported $9.0 million of non-interest income for the first quarter of 2013, compared to $10.1 million for the first quarter of 2012. The most important components of the first quarter non-interest income were $3.7 million from service charges on deposits accounts, $3.4 million from other service charges and fees, $1.4 million from mortgage lending income, $1.2 million from other income, and $679,000 from insurance commissions offset by the $2.0 million of net amortization on the FDIC indemnification asset. Included in other income was $326,000 of tax-free life insurance proceeds. The proceeds were in connection with two former associates who were not currently with the Company.

Non-interest expense for the first quarter of 2013 was $25.9 million compared to $24.4 million for the first quarter of 2012. For the first quarter of 2013, our efficiency ratio was 46.03% or improved by 372 basis points from the same period of the previous year.

Financial Condition

Total non-covered loans were $2.31 billion at March 31, 2013 compared to $2.33 billion at December 31, 2012. Total covered loans were $358.7 million at March 31, 2013 compared to $384.9 million at December 31, 2012. Total deposits were $3.47 billion at March 31, 2013 compared to $3.48 billion at December 31, 2012. Total assets were $4.23 billion at March 31, 2013 compared to $4.24 billion at December 31, 2012.

Non-performing non-covered loans were $25.8 million as of March 31, 2013, of which $16.3 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 1.12% as of March 31, 2013 compared to 1.17% as of December 31, 2012. Non-performing non-covered assets were $44.9 million as of March 31, 2013, of which $23.0 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 1.21% as of March 31, 2013 compared to the 1.30% reported for December 31, 2012.

The Company's allowance for loan losses for non-covered loans was $42.3 million at March 31, 2013, or 1.83% of total non-covered loans, compared to $45.2 million, or 1.94% of total non-covered loans, at December 31, 2012. As of March 31, 2013 and December 31, 2012, 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 5.13% and 5.26%, respectively. As of March 31, 2013 and December 31, 2012, the Company's allowance for loan losses for non-covered loans was 164% and 166% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $528.4 million at March 31, 2013 compared to $515.5 million at December 31, 2012, an increase of $12.9 million. Book value per common share was $18.79 at March 31, 2013 compared to $18.34 at December 31, 2012.

Branches

Presently, the Company has plans in the second quarter of 2013 to open a loan production office in Pensacola, Florida which will convert to a full-service branch shortly thereafter. During the middle of 2013, the Company has plans for one additional de novo branch location on Highway 30A in Seagrove, Florida. In January 2013, one branch in south Arkansas was closed to improve operational efficiency. As a result of our acquisition of Premier Bank in the fourth quarter of 2012, it is anticipated three to four branches will close in the Tallahassee, FL area 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, April 18, 2013. Interested parties can listen to this call by calling 1-888-317-6016 and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-344-7529, Passcode: 10026428, which will be available until April 26, 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 is included in its Annual Report on Form 10-K for the year ended December 31, 2012 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)
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(In thousands) 2013 2012 2012 2012 2012
ASSETS
Cash and due from banks $ 95,604 $ 101,972 $ 86,381 $ 71,078 $ 76,837
Interest-bearing deposits with other banks 206,753 129,883 69,248 287,452 269,401
Cash and cash equivalents 302,357 231,855 155,629 358,530 346,238
Federal funds sold 2,850 17,148 1,775 575 1,375
Investment securities - available for sale 724,929 726,223 755,197 712,820 759,959
Loans receivable not covered by loss share 2,309,146 2,331,199 2,076,248 2,035,487 2,046,108
Loans receivable covered by FDIC loss share 358,669 384,884 407,416 432,422 455,435
Allowance for loan losses (45,935) (50,632) (54,440) (56,511) (51,014)
Loans receivable, net 2,621,880 2,665,451 2,429,224 2,411,398 2,450,529
Bank premises and equipment, net 117,534 113,883 105,131 100,694 100,674
Foreclosed assets held for sale not covered by loss share 18,861 20,393 14,942 14,481 14,634
Foreclosed assets held for sale covered by FDIC loss share 29,928 31,526 31,799 35,008 39,744
FDIC indemnification asset 126,275 139,646 153,758 162,439 181,884
Cash value of life insurance 59,185 59,219 53,366 53,167 52,955
Accrued interest receivable 14,367 16,305 14,872 14,834 15,845
Deferred tax asset, net 40,907 46,998 33,680 31,115 34,680
Goodwill 85,681 85,681 77,090 77,090 77,090
Core deposit and other intangibles 11,259 12,061 9,792 10,486 11,180
Other assets 69,494 75,741 51,654 73,768 61,165
Total assets $ 4,225,507 $ 4,242,130 $ 3,887,909 $ 4,056,405 $ 4,147,952
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing $ 717,830 $ 666,414 $ 596,746 $ 597,374 $ 583,951
Savings and interest-bearing transaction accounts 1,810,957 1,784,047 1,527,829 1,521,869 1,514,812
Time deposits 936,649 1,032,991 1,007,894 1,174,286 1,281,636
Total deposits 3,465,436 3,483,452 3,132,469 3,293,529 3,380,399
Federal funds purchased -- -- -- -- --
Securities sold under agreements to repurchase 77,194 66,278 61,499 66,620 72,531
FHLB borrowed funds 130,369 130,388 130,506 140,523 142,753
Accrued interest payable and other liabilities 21,020 17,672 24,590 15,967 27,403
Subordinated debentures 3,093 28,867 28,867 44,331 44,331
Total liabilities 3,697,112 3,726,657 3,377,931 3,560,970 3,667,417
Stockholders' equity
Common stock 281 281 282 281 281
Capital surplus 416,741 416,354 420,595 420,538 421,006
Retained earnings 100,730 86,837 77,190 64,478 51,800
Accumulated other comprehensive income 10,643 12,001 11,911 10,138 7,448
Total stockholders' equity 528,395 515,473 509,978 495,435 480,535
Total liabilities and stockholders' equity $ 4,225,507 $ 4,242,130 $ 3,887,909 $ 4,056,405 $ 4,147,952
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) 2013 2012 2012 2012 2012 2013 2012
Interest income
Loans $ 44,159 $ 41,203 $ 39,285 $ 40,365 $ 38,506 $ 44,159 $ 38,506
Investment securities
Taxable 2,403 2,708 2,598 3,060 2,860 2,403 2,860
Tax-exempt 1,481 1,544 1,541 1,534 1,535 1,481 1,535
Deposits - other banks 98 52 115 127 85 98 85
Federal funds sold 7 9 3 3 2 7 2
Total interest income 48,148 45,516 43,542 45,089 42,988 48,148 42,988
Interest expense
Interest on deposits 2,485 2,877 3,288 4,164 4,660 2,485 4,660
Federal funds purchased -- 1 -- -- -- -- --
FHLB borrowed funds 1,004 1,030 1,040 1,134 1,160 1,004 1,160
Securities sold under agreements to repurchase 80 79 107 111 110 80 110
Subordinated debentures 230 247 482 521 524 230 524
Total interest expense 3,799 4,234 4,917 5,930 6,454 3,799 6,454
Net interest income 44,349 41,282 38,625 39,159 36,534 44,349 36,534
Provision for loan losses -- 1,250 167 1,333 -- -- --
Net interest income after provision for loan losses 44,349 40,032 38,458 37,826 36,534 44,349 36,534
Non-interest income
Service charges on deposit accounts 3,709 4,062 3,834 3,668 3,505 3,709 3,505
Other service charges and fees 3,437 3,062 3,119 3,223 3,024 3,437 3,024
Mortgage lending income 1,372 1,461 1,550 1,277 904 1,372 904
Insurance commissions 679 368 512 438 551 679 551
Income from title services 109 133 112 129 88 109 88
Increase in cash value of life insurance 180 202 200 214 257 180 257
Dividends from FHLB, FRB, bankers' bank & other 175 635 182 175 175 175 175
Gain on acquisitions -- 5,205 -- -- -- -- --
Gain on sale of SBA loans 56 -- 206 198 -- 56 --
Gain (loss) on sale of premises & equip, net 15 (30) (5) 359 -- 15 --
Gain (loss) on OREO, net 86 121 (222) 159 (107) 86 (107)
Gain (loss) on securities, net -- (1) -- (9) 19 -- 19
FDIC indemnification accretion/amortization, net (1,992) 229 373 449 670 (1,992) 670
Other income 1,199 740 765 773 1,017 1,199 1,017
Total non-interest income 9,025 16,187 10,626 11,053 10,103 9,025 10,103
Non-interest expense
Salaries and employee benefits 12,952 12,348 11,652 11,903 11,386 12,952 11,386
Occupancy and equipment 3,594 3,712 3,805 3,552 3,431 3,594 3,431
Data processing expense 1,510 1,331 1,137 1,371 1,091 1,510 1,091
Other operating expenses 7,807 12,186 7,387 7,598 8,478 7,807 8,478
Total non-interest expense 25,863 29,577 23,981 24,424 24,386 25,863 24,386
Income before income taxes 27,511 26,642 25,103 24,455 22,251 27,511 22,251
Income tax expense 9,963 9,703 9,008 8,965 7,753 9,963 7,753
Net income available to all shareholders $ 17,548 $ 16,939 $ 16,095 $ 15,490 $ 14,498 $ 17,548 $ 14,498
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) 2013 2012 2012 2012 2012 2013 2012
PER SHARE DATA
Diluted earnings per common share $ 0.62 $ 0.60 $ 0.57 $ 0.55 $ 0.51 $ 0.62 $ 0.51
Diluted earnings per common share excluding intangible amortization 0.64 0.62 0.58 0.57 0.52 0.64 0.52
Basic earnings per common share 0.62 0.60 0.58 0.55 0.51 0.62 0.51
Dividends per share - common 0.130 0.260 0.120 0.100 0.100 0.130 0.100
Book value per common share 18.79 18.34 18.10 17.64 17.11 18.79 17.11
Tangible book value per common share 15.35 14.86 15.01 14.53 13.96 15.35 13.96
STOCK INFORMATION
Average common shares outstanding 28,111 28,073 28,150 28,095 28,230 28,111 28,230
Average diluted shares outstanding 28,267 28,244 28,341 28,283 28,411 28,267 28,411
End of period common shares outstanding 28,114 28,107 28,181 28,079 28,091 28,114 28,091
ANNUALIZED PERFORMANCE METRICS
Return on average assets 1.70% 1.67% 1.61% 1.53% 1.52% 1.70% 1.52%
Return on average assets excluding intangible amortization 1.79% 1.75% 1.69% 1.61% 1.60% 1.79% 1.60%
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) 2.77% 2.88% 2.69% 2.67% 2.64% 2.77% 2.64%
Return on average common equity 13.68% 13.19% 12.78% 12.80% 12.21% 13.68% 12.21%
Return on average tangible common equity excluding intangible amortization 17.29% 16.46% 15.88% 16.05% 15.03% 17.29% 15.03%
Efficiency ratio 46.03% 49.21% 46.24% 46.22% 49.75% 46.03% 49.75%
Core efficiency ratio 46.39% 44.40% 45.63% 46.87% 46.12% 46.39% 46.12%
Net interest margin - FTE 5.15% 4.86% 4.65% 4.65% 4.65% 5.15% 4.65%
Fully taxable equivalent adjustment $ 1,075 $ 1,122 $ 1,112 $ 1,126 $ 1,115 $ 1,075 $ 1,115
Total revenue 57,173 61,703 54,168 56,142 53,091 57,173 53,091
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to common shareholders $ 17,548 $ 16,939 $ 16,095 $ 15,490 $ 14,498 $ 17,548 $ 14,498
Intangible amortization after-tax 487 452 421 422 383 487 383
Earnings excluding intangible amortization $ 18,035 $ 17,391 $ 16,516 $ 15,912 $ 14,881 $ 18,035 $ 14,881
GAAP diluted earnings per share $ 0.62 $ 0.60 $ 0.57 $ 0.55 $ 0.51 $ 0.62 $ 0.51
Intangible amortization after-tax 0.02 0.02 0.01 0.02 0.01 0.02 0.01
Diluted earnings per share excluding intangible amortization $ 0.64 $ 0.62 $ 0.58 $ 0.57 $ 0.52 $ 0.64 $ 0.52
OTHER OPERATING EXPENSES
Advertising $ 693 $ 549 $ 534 $ 904 $ 460 $ 693 $ 460
Merger and acquisition expenses 28 5,169 296 -- 1,692 28 1,692
Amortization of intangibles 802 743 694 694 630 802 630
Electronic banking expense 863 845 809 728 793 863 793
Directors' fees 190 196 206 193 212 190 212
Due from bank service charges 133 124 137 159 116 133 116
FDIC and state assessment 630 571 588 516 638 630 638
Insurance 566 501 448 424 401 566 401
Legal and accounting 322 225 231 287 322 322 322
Other professional fees 473 392 411 354 498 473 498
Operating supplies 343 299 280 291 264 343 264
Postage 207 216 219 240 221 207 221
Telephone 303 282 270 276 246 303 246
Other expense 2,254 2,074 2,264 2,532 1,985 2,254 1,985
Total other operating expenses $ 7,807 $ 12,186 $ 7,387 $ 7,598 $ 8,478 $ 7,807 $ 8,478
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(Dollars in thousands) 2013 2012 2012 2012 2012
BALANCE SHEET RATIOS
Total loans to total deposits 76.98% 77.97% 79.29% 74.93% 74.00%
Common equity to assets 12.5% 12.2% 13.1% 12.2% 11.6%
Tangible common equity to tangible assets 10.5% 10.1% 11.1% 10.3% 9.7%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period $ 45,170 $ 47,292 $ 49,846 $ 51,014 $ 52,129
Loans charged off 3,318 3,739 3,984 1,601 1,469
Recoveries of loans previously charged off 450 367 1,430 433 354
Net loans charged off 2,868 3,372 2,554 1,168 1,115
Provision for loan losses -- 1,250 -- -- --
Balance, end of period $ 42,302 $ 45,170 $ 47,292 $ 49,846 $ 51,014
Discount for credit losses on non-covered loans acquired 80,305 81,717 14,712 16,112 17,154
Net charge-offs on loans not covered by loss share to average non-covered loans 0.50% 0.61% 0.50% 0.23% 0.23%
Allowance for loan losses for non-covered loans to total non-covered loans 1.83% 1.94% 2.28% 2.45% 2.49%
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 5.13% 5.26% 2.97% 3.21% 3.30%
Covered
Balance, beginning of period $ 5,462 $ 7,148 $ 6,665 $ -- $ --
Loans charged off 1,840 1,688 354 -- --
Recoveries of loans previously charged off 11 2 -- -- --
Net loans charged off 1,829 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 indemnificaton asset -- -- 670 5,332 --
Balance, end of period $ 3,633 $ 5,462 $ 7,148 $ 6,665 $ --
Total Allowance for Loan Losses $ 45,935 $ 50,632 $ 54,440 $ 56,511 $ 51,014
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans $ 19,078 $ 21,336 $ 20,183 $ 24,810 $ 27,425
Non-covered loans past due 90 days or more 6,692 5,937 2,424 1,326 289
Total non-performing non-covered loans 25,770 27,273 22,607 26,136 27,714
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 18,861 20,393 14,942 14,481 14,634
Other non-performing non-covered assets 285 164 1 79 71
Total other non-performing non-covered assets 19,146 20,557 14,943 14,560 14,705
Total non-performing non-covered assets $ 44,916 $ 47,830 $ 37,550 $ 40,696 $ 42,419
Allowance for loan losses for non-covered loans to non-performing non-covered loans 164.15% 165.62% 209.19% 190.72% 184.07%
Non-performing non-covered loans to total non-covered loans 1.12% 1.17% 1.09% 1.28% 1.35%
Non-performing non-covered assets to total non-covered assets 1.21% 1.30% 1.14% 1.19% 1.22%
Home BancShares, Inc.
Loan Information
(Unaudited)
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(Dollars in thousands) 2013 2012 2012 2012 2012
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 1,014,301 $ 1,019,039 $ 887,895 $ 856,334 $ 780,520
Construction/land development 254,673 254,800 282,269 269,371 413,093
Agricultural 34,288 32,513 28,403 28,570 28,120
Residential real estate loans
Residential 1-4 family 531,698 549,269 473,412 481,018 471,439
Multifamily residential 122,998 129,742 105,369 106,206 65,226
Total real estate 1,957,958 1,985,363 1,777,348 1,741,499 1,758,398
Consumer 33,823 37,462 35,433 37,146 38,254
Commercial and industrial 269,463 256,908 200,160 197,278 196,165
Agricultural 16,573 19,825 36,239 31,741 21,275
Other 31,329 31,641 27,068 27,823 32,016
Loans receivable not covered by loss share $ 2,309,146 $ 2,331,199 $ 2,076,248 $ 2,035,487 $ 2,046,108
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 155,345 $ 164,723 $ 175,195 $ 187,802 $ 179,360
Construction/land development 58,384 66,713 71,958 74,989 99,996
Agricultural 2,256 2,282 2,289 2,737 3,092
Residential real estate loans
Residential 1-4 family 120,246 125,625 130,425 136,498 139,819
Multifamily residential 9,443 9,567 10,062 10,216 9,077
Total real estate 345,674 368,910 389,929 412,242 431,344
Consumer 28 39 70 71 549
Commercial and industrial 11,712 14,668 16,878 19,541 22,843
Agricultural -- -- -- -- --
Other 1,255 1,267 539 568 699
Loans receivable covered by loss share $ 358,669 $ 384,884 $ 407,416 $ 432,422 $ 455,435
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
March 31, 2013 December 31, 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 $ 148,744 $ 98 0.27% $ 97,308 $ 51 0.21%
Federal funds sold 15,724 7 0.18% 15,061 9 0.24%
Investment securities - taxable 561,056 2,403 1.74% 581,840 2,708 1.85%
Investment securities - non-taxable - FTE 165,411 2,419 5.93% 165,957 2,518 6.04%
Loans receivable - FTE 2,684,376 44,296 6.69% 2,608,090 41,351 6.31%
Total interest-earning assets 3,575,311 49,223 5.58% 3,468,256 46,637 5.35%
Non-earning assets 617,582 571,264
Total assets $ 4,192,893 $ 4,039,520
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 1,771,631 $ 814 0.19% $ 1,632,053 $ 784 0.19%
Time deposits 986,787 1,671 0.69% 1,028,938 2,093 0.81%
Total interest-bearing deposits 2,758,418 2,485 0.37% 2,660,991 2,877 0.43%
Federal funds purchased -- -- 0.00% 392 -- 0.00%
Securities sold under agreement to repurchase 69,664 80 0.47% 62,913 79 0.50%
FHLB borrowed funds 130,376 1,004 3.12% 130,427 1,030 3.14%
Subordinated debentures 27,149 230 3.44% 28,867 247 3.40%
Total interest-bearing liabilities 2,985,607 3,799 0.52% 2,883,590 4,233 0.58%
Non-interest bearing liabilities
Non-interest bearing deposits 668,222 620,806
Other liabilities 18,769 24,089
Total liabilities 3,672,598 3,528,485
Shareholders' equity 520,295 511,035
Total liabilities and shareholders' equity $ 4,192,893 $ 4,039,520
Net interest spread 5.06% 4.77%
Net interest income and margin - FTE $ 45,424 5.15% $ 42,404 4.86%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
March 31, 2013 March 31, 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 $ 148,744 $ 98 0.27% $ 151,569 $ 85 0.23%
Federal funds sold 15,724 7 0.18% 2,964 2 0.27%
Investment securities - taxable 561,056 2,403 1.74% 568,890 2,860 2.02%
Investment securities - non-taxable - FTE 165,411 2,419 5.93% 151,289 2,495 6.63%
Loans receivable - FTE 2,684,376 44,296 6.69% 2,384,860 38,661 6.52%
Total interest-earning assets 3,575,311 49,223 5.58% 3,259,572 44,103 5.44%
Non-earning assets 617,582 567,043
Total assets $ 4,192,893 $ 3,826,615
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 1,771,631 $ 814 0.19% $ 1,328,139 $ 1,011 0.31%
Time deposits 986,787 1,671 0.69% 1,241,210 3,649 1.18%
Total interest-bearing deposits 2,758,418 2,485 0.37% 2,569,349 4,660 0.73%
Federal funds purchased -- -- 0.00% 382 -- 0.00%
Securities sold under agreement to repurchase 69,664 80 0.47% 69,051 110 0.64%
FHLB borrowed funds 130,376 1,004 3.12% 142,761 1,160 3.27%
Subordinated debentures 27,149 230 3.44% 44,331 524 4.75%
Total interest-bearing liabilities 2,985,607 3,799 0.52% 2,825,874 6,454 0.92%
Non-interest bearing liabilities
Non-interest bearing deposits 668,222 497,634
Other liabilities 18,769 25,563
Total liabilities 3,672,598 3,349,071
Shareholders' equity 520,295 477,544
Total liabilities and shareholders' equity $ 4,192,893 $ 3,826,615
Net interest spread 5.06% 4.52%
Net interest income and margin - FTE $ 45,424 5.15% $ 37,649 4.65%

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