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Home BancShares, Inc. Announces Record Quarterly Net Income of $17.7 Million

Home BancShares logo

CONWAY, Ark., July 18, 2013 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced second quarter net income of $17.7 million, or $0.31 diluted earnings per common share, compared to $15.5 million of net income, or $0.27 diluted earnings per common share (split adjusted) for the same quarter in 2012. The Company increased its second quarter earnings by $2.2 million or 14.0% for the three months ended June 30, 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 second quarter of 2013 was $0.32 compared to $0.28 diluted earnings per common share excluding intangible amortization (split adjusted) for the same period in 2012.

"The second quarter's record net income is another exceptional achievement for Home BancShares," said John Allison, Chairman. "We also continue to exhibit strong capital levels, which remain considerably above the regulators' capital requirements. These strong reserves placed us in a position to participate in an opportunity like the recently announced Liberty Bank market acquisition. Merging these two similarly sized Arkansas-based companies with comparable cultures and history is a game-changer for Home BancShares. We are confidently optimistic of the Company's continued bright future when Liberty gets on board."

Randy Sims, Chief Executive Officer, added, "For the ninth consecutive quarter in the Company's history, we have again reported the most profitable quarter, increasing net income by $111,000 or 0.6% from our previously reported record earnings. Not only did the Company display an outstanding return on average assets of 1.71% for the second quarter of 2013, but we also improved our net interest margin by 53 basis points when comparing the second quarter of 2013 to the second quarter of 2012."

Operating Highlights

Net interest income for the second quarter of 2013 increased 14.5% to $44.8 million from $39.2 million during the second quarter of 2012. For the second quarter of 2013, the effective yield on non-covered loans and covered loans was 6.04% and 10.78%, respectively. Net interest margin, on a fully taxable equivalent basis, was 5.18% for the quarter just ended compared to 4.65% in the second quarter of 2012, an increase of 53 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 $9.8 million of non-interest income for the second quarter of 2013, compared to $11.1 million for the second quarter of 2012. The most important components of the second quarter non-interest income were $4.1 million from service charges on deposits accounts, $3.5 million from other service charges and fees, $1.6 million from mortgage lending income, $750,000 from other income, $444,000 from insurance commissions, $441,000 from gain on sale of other real estate owned, and $394,000 from gain on sale of assets offset by the $2.3 million of net amortization on the FDIC indemnification asset.

Non-interest expense for the second quarter of 2013 was $25.9 million compared to $24.4 million for the second quarter of 2012. For the second quarter of 2013, our efficiency ratio was 45.0% which was an improvement of 124 basis points from the same period of the previous year.

Financial Condition

Total non-covered loans were $2.34 billion at June 30, 2013 compared to $2.33 billion at December 31, 2012. Total covered loans were $329.8 million at June 30, 2013 compared to $384.9 million at December 31, 2012. Total deposits were $3.33 billion at June 30, 2013 compared to $3.48 billion at December 31, 2012. Total assets were $4.09 billion at June 30, 2013 compared to $4.24 billion at December 31, 2012.

Non-performing non-covered loans were $31.0 million as of June 30, 2013, of which $22.8 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 1.33% as of June 30, 2013 compared to 1.17% as of December 31, 2012. Non-performing non-covered assets were $47.2 million as of June 30, 2013, of which $28.4 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 1.30% as of both June 30, 2013 and December 31, 2012.

The Company's allowance for loan losses for non-covered loans was $40.5 million at June 30, 2013, or 1.73% of total non-covered loans, compared to $45.2 million, or 1.94% of total non-covered loans, at December 31, 2012. As of June 30, 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 4.99% and 5.26%, respectively. As of June 30, 2013 and December 31, 2012, the Company's allowance for loan losses for non-covered loans was 130% and 166% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $533.5 million at June 30, 2013 compared to $515.5 million at December 31, 2012, an increase of $18.0 million. Book value per common share was $9.49 at June 30, 2013 compared to $9.17 (split adjusted) at December 31, 2012.

Branches

During the second quarter, the Company opened a loan production office in Pensacola, Florida and subsequently converted it to a full-service branch. As a result of our acquisition of Premier Bank in the fourth quarter of 2012, three branches closed in the Tallahassee, FL area during the second quarter of 2013. In addition, the Company opened one de novo branch location on Highway 30A in Seagrove, Florida during the first part of July and has plans to open two additional de novo branches in the Florida Panhandle during the third quarter of 2013.

Upon completion of the Liberty Bank transaction announced at the end of the second quarter, Centennial Bank will have 46 additional branch locations across Northeast Arkansas, Northwest Arkansas and Western Arkansas. The acquisition is expected to close late in the third quarter or early in the fourth quarter of 2013 and is subject to Home and Liberty shareholder approval, regulatory approval, and other conditions set forth in the merger agreement.

The Company currently has 46 branches in Arkansas, 53 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, July 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: 10029906, which will be available until July 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. Upon completion of the Liberty Bank transaction, Centennial Bank will have additional locations in Northeast Arkansas, Northwest Arkansas and Western Arkansas. 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) Jun. 30,
2013
Mar. 31,
2013
Dec. 31,
2012
Sep. 30,
2012
Jun. 30,
2012
ASSETS
Cash and due from banks $ 75,148 $ 95,604 $ 101,972 $ 86,381 $ 71,078
Interest-bearing deposits with other banks 97,576 206,753 129,883 69,248 287,452
Cash and cash equivalents 172,724 302,357 231,855 155,629 358,530
Federal funds sold 2,475 2,850 17,148 1,775 575
Investment securities - available for sale 736,406 724,929 726,223 755,197 712,820
Loans receivable not covered by loss share 2,339,242 2,309,146 2,331,199 2,076,248 2,035,487
Loans receivable covered by FDIC loss share 329,802 358,669 384,884 407,416 432,422
Allowance for loan losses (41,450) (45,935) (50,632) (54,440) (56,511)
Loans receivable, net 2,627,594 2,621,880 2,665,451 2,429,224 2,411,398
Bank premises and equipment, net 119,737 117,534 113,883 105,131 100,694
Foreclosed assets held for sale not covered by loss share 15,985 18,861 20,393 14,942 14,481
Foreclosed assets held for sale covered by FDIC loss share 27,073 29,928 31,526 31,799 35,008
FDIC indemnification asset 116,071 126,275 139,646 153,758 162,439
Cash value of life insurance 59,401 59,185 59,219 53,366 53,167
Accrued interest receivable 14,424 14,367 16,305 14,872 14,834
Deferred tax asset, net 46,655 40,907 46,998 33,680 31,115
Goodwill 85,681 85,681 85,681 77,090 77,090
Core deposit and other intangibles 10,457 11,259 12,061 9,792 10,486
Other assets 56,654 69,494 75,741 51,654 73,768
Total assets $ 4,091,337 $ 4,225,507 $ 4,242,130 $ 3,887,909 $ 4,056,405
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing $ 733,374 $ 717,830 $ 666,414 $ 596,746 $ 597,374
Savings and interest-bearing transaction accounts 1,735,280 1,810,957 1,784,047 1,527,829 1,521,869
Time deposits 856,581 936,649 1,032,991 1,007,894 1,174,286
Total deposits 3,325,235 3,465,436 3,483,452 3,132,469 3,293,529
Federal funds purchased -- -- -- -- --
Securities sold under agreements to repurchase 73,461 77,194 66,278 61,499 66,620
FHLB borrowed funds 130,251 130,369 130,388 130,506 140,523
Accrued interest payable and other liabilities 25,787 21,020 17,672 24,590 15,967
Subordinated debentures 3,093 3,093 28,867 28,867 44,331
Total liabilities 3,557,827 3,697,112 3,726,657 3,377,931 3,560,970
Stockholders' equity
Common stock 562 281 281 282 281
Capital surplus 416,795 416,741 416,354 420,595 420,538
Retained earnings 114,172 100,730 86,837 77,190 64,478
Accumulated other comprehensive income 1,981 10,643 12,001 11,911 10,138
Total stockholders' equity 533,510 528,395 515,473 509,978 495,435
Total liabilities and stockholders' equity $ 4,091,337 $ 4,225,507 $ 4,242,130 $ 3,887,909 $ 4,056,405
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended Six Months Ended
(In thousands) Jun. 30,
2013
Mar. 31,
2013
Dec. 31,
2012
Sep. 30,
2012
Jun. 30,
2012
Jun. 30,
2013
Jun. 30,
2012
Interest income
Loans $ 44,036 $ 44,159 $ 41,203 $ 39,285 $ 40,365 $ 88,195 $ 78,871
Investment securities
Taxable 2,490 2,403 2,708 2,598 3,060 4,893 5,920
Tax-exempt 1,467 1,481 1,544 1,541 1,534 2,948 3,069
Deposits - other banks 86 98 52 115 127 184 212
Federal funds sold 6 7 9 3 3 13 5
Total interest income 48,085 48,148 45,516 43,542 45,089 96,233 88,077
Interest expense
Interest on deposits 2,129 2,485 2,877 3,288 4,164 4,614 8,824
Federal funds purchased -- -- 1 -- -- -- --
FHLB borrowed funds 1,012 1,004 1,030 1,040 1,134 2,016 2,294
Securities sold under agreements to repurchase 86 80 79 107 111 166 221
Subordinated debentures 17 230 247 482 521 247 1,045
Total interest expense 3,244 3,799 4,234 4,917 5,930 7,043 12,384
Net interest income 44,841 44,349 41,282 38,625 39,159 89,190 75,693
Provision for loan losses 850 -- 1,250 167 1,333 850 1,333
Net interest income after provision for loan losses 43,991 44,349 40,032 38,458 37,826 88,340 74,360
Non-interest income
Service charges on deposit accounts 4,088 3,709 4,062 3,834 3,668 7,797 7,173
Other service charges and fees 3,479 3,437 3,062 3,119 3,223 6,916 6,247
Mortgage lending income 1,619 1,372 1,461 1,550 1,277 2,991 2,181
Insurance commissions 444 679 368 512 438 1,123 989
Income from title services 136 109 133 112 129 245 217
Increase in cash value of life insurance 218 180 202 200 214 398 471
Dividends from FHLB, FRB, bankers' bank & other 401 175 635 182 175 576 350
Gain on acquisitions -- -- 5,205 -- -- -- --
Gain on sale of SBA loans -- 56 -- 206 198 56 198
Gain (loss) on sale of premises & equip, net 394 15 (30) (5) 359 409 359
Gain (loss) on OREO, net 441 86 121 (222) 159 527 52
Gain (loss) on securities, net 111 -- (1) -- (9) 111 10
FDIC indemnification accretion/amortization, net (2,283) (1,992) 229 373 449 (4,275) 1,119
Other income 757 1,199 740 765 773 1,956 1,790
Total non-interest income 9,805 9,025 16,187 10,626 11,053 18,830 21,156
Non-interest expense
Salaries and employee benefits 12,957 12,952 12,348 11,652 11,903 25,909 23,289
Occupancy and equipment 3,894 3,594 3,712 3,805 3,552 7,488 6,983
Data processing expense 1,231 1,510 1,331 1,137 1,371 2,741 2,462
Other operating expenses 7,773 7,807 12,186 7,387 7,598 15,580 16,076
Total non-interest expense 25,855 25,863 29,577 23,981 24,424 51,718 48,810
Income before income taxes 27,941 27,511 26,642 25,103 24,455 55,452 46,706
Income tax expense 10,282 9,963 9,703 9,008 8,965 20,245 16,718
Net income available to all shareholders $ 17,659 $ 17,548 $ 16,939 $ 16,095 $ 15,490 $ 35,207 $ 29,988
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter Ended Six Months Ended
(Dollars and shares in thousands,
except per share data)
Jun. 30,
2013
Mar. 31,
2013
Dec. 31,
2012
Sep. 30,
2012
Jun. 30,
2012
Jun. 30,
2013
Jun. 30,
2012
PER SHARE DATA
Diluted earnings per common share $ 0.31 $ 0.31 $ 0.30 $ 0.28 $ 0.27 $ 0.62 $ 0.53
Diluted earnings per common share excluding intangible amortization 0.32 0.32 0.31 0.29 0.28 0.64 0.54
Basic earnings per common share 0.32 0.31 0.30 0.29 0.28 0.63 0.53
Dividends per share - common 0.075 0.065 0.130 0.060 0.050 0.140 0.100
Book value per common share 9.49 9.40 9.17 9.05 8.82 9.49 8.82
Tangible book value per common share 7.78 7.67 7.43 7.51 7.26 7.78 7.26
STOCK INFORMATION
Average common shares outstanding 56,234 56,222 56,145 56,299 56,190 56,228 56,325
Average diluted shares outstanding 56,577 56,535 56,486 56,680 56,566 56,555 56,691
End of period common shares outstanding 56,243 56,229 56,213 56,363 56,158 56,243 56,158
ANNUALIZED PERFORMANCE METRICS
Return on average assets 1.71% 1.70% 1.67% 1.61% 1.53% 1.70% 1.53%
Return on average assets excluding intangible amortization 1.80% 1.79% 1.75% 1.69% 1.61% 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) 2.93% 2.77% 2.88% 2.69% 2.67% 2.85% 2.66%
Return on average common equity 13.27% 13.68% 13.19% 12.78% 12.80% 13.47% 12.51%
Return on average tangible common equity excluding intangible amortization 16.65% 17.29% 16.46% 15.88% 16.05% 16.97% 15.54%
Efficiency ratio 44.98% 46.03% 49.21% 46.24% 46.22% 45.50% 47.92%
Core efficiency ratio 45.76% 46.39% 44.40% 45.63% 46.87% 46.07% 46.51%
Net interest margin - FTE 5.18% 5.15% 4.86% 4.65% 4.65% 5.16% 4.65%
Fully taxable equivalent adjustment $ 1,051 $ 1,075 $ 1,122 $ 1,112 $ 1,126 $ 2,126 $ 2,241
Total revenue 57,890 57,173 61,703 54,168 56,142 115,063 109,233
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to common shareholders $ 17,659 $ 17,548 $ 16,939 $ 16,095 $ 15,490 $ 35,207 $ 29,988
Intangible amortization after-tax 488 487 452 421 422 975 805
Earnings excluding intangible amortization $ 18,147 $ 18,035 $ 17,391 $ 16,516 $ 15,912 $ 36,182 $ 30,793
GAAP diluted earnings per share $ 0.31 $ 0.31 $ 0.30 $ 0.28 $ 0.27 $ 0.62 $ 0.53
Intangible amortization after-tax 0.01 0.01 0.01 0.01 0.01 0.02 0.01
Diluted earnings per share excluding intangible amortization $ 0.32 $ 0.32 $ 0.31 $ 0.29 $ 0.28 $ 0.64 $ 0.54
OTHER OPERATING EXPENSES
Advertising $ 120 $ 693 $ 549 $ 534 $ 904 $ 813 $ 1,364
Merger and acquisition expenses 1 28 5,169 296 -- 29 1,692
Amortization of intangibles 802 802 743 694 694 1,604 1,324
Electronic banking expense 960 863 845 809 728 1,823 1,521
Directors' fees 210 190 196 206 193 400 405
Due from bank service charges 168 133 124 137 159 301 275
FDIC and state assessment 677 630 571 588 516 1,307 1,154
Insurance 555 566 501 448 424 1,121 825
Legal and accounting 394 322 225 231 287 716 609
Other professional fees 490 473 392 411 354 963 852
Operating supplies 332 343 299 280 291 675 555
Postage 231 207 216 219 240 438 461
Telephone 291 303 282 270 276 594 522
Other expense 2,542 2,254 2,074 2,264 2,532 4,796 4,517
Total other operating expenses $ 7,773 $ 7,807 $ 12,186 $ 7,387 $ 7,598 $ 15,580 $ 16,076
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
(Dollars in thousands) Jun. 30,
2013
Mar. 31,
2013
Dec. 31,
2012
Sep. 30,
2012
Jun. 30,
2012
BALANCE SHEET RATIOS
Total loans to total deposits 80.27% 76.98% 77.97% 79.29% 74.93%
Common equity to assets 13.0% 12.5% 12.2% 13.1% 12.2%
Tangible common equity to tangible assets 10.9% 10.5% 10.1% 11.1% 10.3%
ALLOWANCE FOR LOAN LOSSES
Non-Covered
Balance, beginning of period $ 42,302 $ 45,170 $ 47,292 $ 49,846 $ 51,014
Loans charged off 3,361 3,318 3,739 3,984 1,601
Recoveries of loans previously charged off 807 450 367 1,430 433
Net loans charged off 2,554 2,868 3,372 2,554 1,168
Provision for loan losses 750 -- 1,250 -- --
Balance, end of period $ 40,498 $ 42,302 $ 45,170 $ 47,292 $ 49,846
Discount for credit losses on non-covered loans acquired 80,322 80,305 81,717 14,712 16,112
Net charge-offs on loans not covered by loss share to average non-covered loans 0.45% 0.50% 0.61% 0.50% 0.23%
Allowance for loan losses for non-covered loans to total non-covered loans 1.73% 1.83% 1.94% 2.28% 2.45%
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 4.99% 5.13% 5.26% 2.97% 3.21%
Covered
Balance, beginning of period $ 3,633 $ 5,462 $ 7,148 $ 6,665 $ --
Loans charged off 3,187 1,840 1,688 354 --
Recoveries of loans previously charged off 6 11 2 -- --
Net loans charged off 3,181 1,829 1,686 354 --
Provision for loan losses before benefit attributable to FDIC loss share agreements 500 -- -- 837 6,665
Benefit attributable to FDIC loss share agreements (100) -- -- (670) (5,332)
Net provision for loan losses 400 -- -- 167 1,333
Increase in FDIC indemnificaton asset 100 -- -- 670 5,332
Balance, end of period $ 952 $ 3,633 $ 5,462 $ 7,148 $ 6,665
Total Allowance for Loan Losses $ 41,450 $ 45,935 $ 50,632 $ 54,440 $ 56,511
NON-PERFORMING ASSETS
NOT COVERED BY LOSS SHARE
Non-performing non-covered loans
Non-accrual non-covered loans $ 17,798 $ 19,078 $ 21,336 $ 20,183 $ 24,810
Non-covered loans past due 90 days or more 13,243 6,692 5,937 2,424 1,326
Total non-performing non-covered loans 31,041 25,770 27,273 22,607 26,136
Other non-performing non-covered assets
Non-covered foreclosed assets held for sale, net 15,985 18,861 20,393 14,942 14,481
Other non-performing non-covered assets 172 285 164 1 79
Total other non-performing non-covered assets 16,157 19,146 20,557 14,943 14,560
Total non-performing non-covered assets $ 47,198 $ 44,916 $ 47,830 $ 37,550 $ 40,696
Allowance for loan losses for non-covered loans to non-performing non-covered loans 130.47% 164.15% 165.62% 209.19% 190.72%
Non-performing non-covered loans to total non-covered loans 1.33% 1.12% 1.17% 1.09% 1.28%
Non-performing non-covered assets to total non-covered assets 1.30% 1.21% 1.30% 1.14% 1.19%
Home BancShares, Inc.
Loan Information
(Unaudited)
(Dollars in thousands) Jun. 30,
2013
Mar. 31,
2013
Dec. 31,
2012
Sep. 30,
2012
Jun. 30,
2012
LOANS NOT COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 1,003,391 $ 1,014,301 $ 1,019,039 $ 887,895 $ 856,334
Construction/land development 281,994 254,673 254,800 282,269 269,371
Agricultural 31,119 34,288 32,513 28,403 28,570
Residential real estate loans
Residential 1-4 family 528,260 531,698 549,269 473,412 481,018
Multifamily residential 120,899 122,998 129,742 105,369 106,206
Total real estate 1,965,663 1,957,958 1,985,363 1,777,348 1,741,499
Consumer 32,671 33,823 37,462 35,433 37,146
Commercial and industrial 287,351 269,463 256,908 200,160 197,278
Agricultural 26,462 16,573 19,825 36,239 31,741
Other 27,095 31,329 31,641 27,068 27,823
Loans receivable not covered by loss share $ 2,339,242 $ 2,309,146 $ 2,331,199 $ 2,076,248 $ 2,035,487
LOANS COVERED BY LOSS SHARE
Real estate
Commercial real estate loans
Non-farm/non-residential $ 143,922 $ 155,345 $ 164,723 $ 175,195 $ 187,802
Construction/land development 56,447 58,384 66,713 71,958 74,989
Agricultural 1,784 2,256 2,282 2,289 2,737
Residential real estate loans
Residential 1-4 family 107,612 120,246 125,625 130,425 136,498
Multifamily residential 10,644 9,443 9,567 10,062 10,216
Total real estate 320,409 345,674 368,910 389,929 412,242
Consumer 20 28 39 70 71
Commercial and industrial 8,193 11,712 14,668 16,878 19,541
Agricultural -- -- -- -- --
Other 1,180 1,255 1,267 539 568
Loans receivable covered by loss share $ 329,802 $ 358,669 $ 384,884 $ 407,416 $ 432,422
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
June 30, 2013 March 31, 2013
(Dollars in thousands) Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield
/Rate
ASSETS
Earning assets
Interest-bearing balances due from banks $ 135,431 $ 86 0.25% $ 148,744 $ 98 0.27%
Federal funds sold 10,169 6 0.24% 15,724 7 0.18%
Investment securities - taxable 572,997 2,490 1.74% 561,056 2,403 1.74%
Investment securities - non-taxable - FTE 172,439 2,394 5.57% 165,411 2,419 5.93%
Loans receivable - FTE 2,663,627 44,160 6.65% 2,684,376 44,296 6.69%
Total interest-earning assets 3,554,663 49,136 5.54% 3,575,311 49,223 5.58%
Non-earning assets 592,822 617,582
Total assets $ 4,147,485 $ 4,192,893
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 1,779,269 $ 741 0.17% $ 1,771,631 $ 814 0.19%
Time deposits 900,809 1,388 0.62% 986,787 1,671 0.69%
Total interest-bearing deposits 2,680,078 2,129 0.32% 2,758,418 2,485 0.37%
Federal funds purchased 1 -- 0.00% -- -- 0.00%
Securities sold under agreement to repurchase 72,599 86 0.48% 69,664 80 0.47%
FHLB borrowed funds 130,282 1,012 3.12% 130,376 1,004 3.12%
Subordinated debentures 3,093 17 2.20% 27,149 230 3.44%
Total interest-bearing liabilities 2,886,053 3,244 0.45% 2,985,607 3,799 0.52%
Non-interest bearing liabilities
Non-interest bearing deposits 704,847 668,222
Other liabilities 22,939 18,769
Total liabilities 3,613,839 3,672,598
Shareholders' equity 533,646 520,295
Total liabilities and shareholders' equity $ 4,147,485 $ 4,192,893
Net interest spread 5.09% 5.06%
Net interest income and margin - FTE $ 45,892 5.18% $ 45,424 5.15%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Six Months Ended
June 30, 2013 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 $ 143,153 $ 184 0.26% $ 187,196 $ 212 0.23%
Federal funds sold 12,931 13 0.20% 4,920 5 0.20%
Investment securities - taxable 567,059 4,893 1.74% 584,238 5,920 2.04%
Investment securities - non-taxable - FTE 168,945 4,813 5.74% 153,303 4,993 6.55%
Loans receivable - FTE 2,673,952 88,456 6.67% 2,443,163 79,188 6.52%
Total interest-earning assets 3,566,040 98,359 5.56% 3,372,820 90,318 5.39%
Non-earning assets 603,930 576,573
Total assets $ 4,169,970 $ 3,949,393
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts $ 1,775,486 $ 1,554 0.18% $ 1,423,645 $ 2,014 0.28%
Time deposits 943,561 3,060 0.65% 1,234,986 6,810 1.11%
Total interest-bearing deposits 2,719,047 4,614 0.34% 2,658,631 8,824 0.67%
Federal funds purchased -- -- 0.00% 342 -- 0.00%
Securities sold under agreement to repurchase 71,140 166 0.47% 70,268 221 0.63%
FHLB borrowed funds 130,328 2,016 3.12% 141,669 2,294 3.26%
Subordinated debentures 15,054 247 3.31% 44,331 1,045 4.74%
Total interest-bearing liabilities 2,935,569 7,043 0.48% 2,915,241 12,384 0.85%
Non-interest bearing liabilities
Non-interest bearing deposits 686,636 528,547
Other liabilities 20,757 23,507
Total liabilities 3,642,962 3,467,295
Shareholders' equity 527,008 482,098
Total liabilities and shareholders' equity $ 4,169,970 $ 3,949,393
Net interest spread 5.08% 4.54%
Net interest income and margin - FTE $ 91,316 5.16% $ 77,934 4.65%

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

Source:Home BancShares, Inc.