CONWAY, Ark., Jan. 16, 2014 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced record net income for the year ended December 31, 2013 of $66.5 million compared to $63.0 million for the year ended 2012. Diluted earnings per share for the year ended 2013 was $1.14 per share compared to $1.11 per share for 2012. Excluding the $18.4 million of 2013 merger expenses associated with the recently completed acquisition of Liberty Bancshares, Inc. (Liberty), diluted earnings per share for the year ended 2013 was $1.33 per share. Excluding the net total expense of $2.0 million for merger expenses and gain on acquisition associated with the three acquisitions completed during 2012, diluted earnings per share for the year ended 2012 was $1.13 per share. Excluding merger expenses and acquisition gain, this represents an increase of $0.20 per share or 17.7% for the year ended 2013 when compared to the previous year.
For the fourth quarter of 2013, the Company recorded quarterly net income of $13.0 million, or $0.19 diluted earnings per common share, compared to $16.9 million of net income, or $0.30 diluted earnings per common share for the same quarter in 2012. Excluding the $17.3 million of fourth quarter 2013 merger expenses associated with the Liberty Bancshares, Inc. acquisition, diluted earnings per share for the fourth quarter 2013 was $0.37 per share. Excluding the net total income of $36,000 for merger expenses and gain on acquisition associated with the two acquisitions completed during the fourth quarter of 2012, diluted earnings per share for the fourth quarter 2012 was $0.30 per share. Excluding merger expenses and acquisition gain, this represents an increase of $0.07 per share or 23.3% for the fourth quarter 2013 when compared to the fourth quarter 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 share excluding intangible amortization for the fourth quarter of 2013 was $0.21 compared to $0.31 diluted earnings per share excluding intangible amortization (split adjusted) for the same period in 2012.
"During the fourth quarter we made a game-changing purchase with the Liberty acquisition. It was a historical accomplishment for Home BancShares to be able to complete Arkansas's largest ever in-state bank acquisition plus convert the core operating systems in the same quarter. This impressive execution has the Company in position to realize the anticipated cost savings, thereby rewarding our shareholders," said John Allison, Chairman. "Our team is focused on this important task and is working to recognize these enhancements as quickly as possible. I am looking forward to watching our team succeed in this process. As a result, I believe there is a bright future for us during 2014."
"We have been able to achieve many successes throughout the year that positioned us to be ready to handle the acquisition of Liberty," said Randy Sims, Chief Executive Officer. "As for the financial results, we are proud of the record profit reported for 2013. It was a truly remarkable financial performance year with the Company reporting net income of $66.5 million and diluted earnings per share of $1.14 per share or net income of $77.7 million and diluted earnings per share of $1.33 excluding merger expenses. During the year we have been focused on our efficiency ratio and net interest margin. These efforts have paid off as we are pleased to report an impressive 45.49% core efficiency ratio and 5.19% net interest margin for the year."
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 fourth quarter 2013 impairment testing, eight FDIC loss sharing pools evaluated by the Company were determined to have a material projected credit improvement. As a result of this improvement, the Company will recognize approximately $14.1 million as an adjustment to yield over the weighted average life of the loans ($1.8 million was recognized during the fourth 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 $8.4 million ($1.3 was recognized for the fourth quarter of 2013) and increase our FDIC true-up liability by $1.3 million ($46,000 was recognized for the fourth quarter of 2013). The $8.4 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 $1.3 million will be expensed over the remaining true-up measurement date as other non-interest expense.
Additionally, during our fourth quarter 2013 impairment testing, five FDIC loss sharing pools evaluated by the Company were determined to have material projected credit deterioration. As a result of the deterioration, the Company recognized $3.9 million in the allowance for loan losses for covered loans. Since these losses will be under loss share with the FDIC, the Company was able to establish an additional $3.1 million of indemnification asset. The financial impact of this impairment testing was $891,000 of provision for loan losses for covered loans.
Net interest income for the fourth quarter of 2013 increased 62.4% to $67.1 million from $41.3 million during the fourth quarter of 2012. For the fourth quarter of 2013, the effective yield on non-covered loans and covered loans was 6.00% and 12.93%, respectively. Net interest margin, on a fully taxable equivalent basis, was 5.09% for the quarter just ended compared to 4.86% in the fourth quarter of 2012, an increase of 23 basis points. The pools which have been determined to have material projected credit improvement as a result of the quarterly impairment testing during 2013 and the acquisition of Liberty have significantly changed the mix and metrics on the net interest margin over the year. Although there have been many changes throughout the year, the Company continues to remain focused on expanding its net interest margin through opportunities such as improved pricing on interest-bearing deposits.
The Company reported $12.2 million of non-interest income for the fourth quarter of 2013, compared to $16.2 million for the fourth quarter of 2012. Excluding gain on acquisitions, non-interest income for the fourth quarter of 2013 was $12.2 million compared to $11.0 million for the fourth quarter of 2012. The most important components of the fourth quarter non-interest income were $6.0 million from service charges on deposits accounts, $5.4 million from other service charges and fees, $1.5 million from mortgage lending income, $840,000 from other income, $778,000 from insurance commissions, and $347,000 from gain on sale of OREO offset by the $2.9 million of net amortization on the FDIC indemnification asset.
Non-interest expense for the fourth quarter of 2013 was $54.9 million compared to $29.6 million for the fourth quarter of 2012. Excluding merger expenses, non-interest expense for the fourth quarter of 2013 was $37.6 million compared to $24.4 million for the fourth quarter of 2012. These increases are primarily associated with the acquisition of Liberty during the fourth quarter of 2013. Excluding merger expenses, non-interest expense only increased 53.9% when compared to 60.6% in asset growth. For the fourth quarter of 2013, our core efficiency ratio was 45.22% which is comparable to the 44.40% reported for fourth quarter of 2012. On December 6, 2013, the Company completed the integration of Liberty's operating systems. As a result, during 2014 the Company anticipates it will be able to continue achieving cost savings from the Liberty transaction.
Financial Condition
Total non-covered loans were $4.19 billion at December 31, 2013 compared to $2.33 billion at December 31, 2012. Total covered loans were $282.5 million at December 31, 2013 compared to $384.9 million at December 31, 2012. Total deposits were $5.39 billion at December 31, 2013 compared to $3.48 billion at December 31, 2012. Total assets were $6.81 billion at December 31, 2013 compared to $4.24 billion at December 31, 2012. All of these increases are primarily related to the acquisition of Liberty during the fourth quarter of 2013.
Non-performing non-covered loans were $38.3 million as of December 31, 2013, of which $20.3 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 0.91% as of December 31, 2013 compared to 1.17% as of December 31, 2012. Non-performing non-covered assets were $68.4 million as of December 31, 2013, of which $24.9 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 1.07% as of December 31, 2013 compared to 1.30% as of December 31, 2012.
The Company's allowance for loan losses for non-covered loans was $39.0 million at December 31, 2013, or 0.93% of total non-covered loans, compared to $45.2 million, or 1.94% of total non-covered loans, at December 31, 2012. As of December 31, 2013 and 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 4.89% and 5.26%, respectively. As of December 31, 2013 and 2012, the Company's allowance for loan losses for non-covered loans was 102% and 166% of its total non-performing non-covered loans, respectively.
Stockholders' equity was $841.0 million at December 31, 2013 compared to $515.5 million at December 31, 2012, an increase of $325.5 million. During the fourth quarter of 2013, the Company issued $290.1 million of common stock to the shareholders of Liberty. Book value per common share was $12.92 at December 31, 2013 compared to $9.17 (split adjusted) at December 31, 2012. Tangible book value per common share was $7.94 at December 31, 2013 compared to $7.99 and $7.43 (split adjusted) at September 30, 2013 and December 31, 2012, respectively. Excluding the decline of accumulated other comprehensive income (i.e. UGL on investments) in equity and the quarterly dividend on the common stock the December 31, 2013 tangible book value would have increased by $0.07 from the amount reported as of September 30, 2013.
Branches
During the fourth quarter of 2013, the Company acquired 46 Arkansas locations as a result of Liberty. In an effort to achieve efficiencies from this transaction, the Company subsequently closed or merged 4 locations. Also during the fourth quarter of 2013, the Company closed one branch in Panama City, Florida. The Company currently has no plans for additional de novo branch locations. During the first quarter of 2014, the Company has plans to close one branch in Panacea, Florida. The Company currently has 88 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, January 16, 2014. 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: 10038852, which will be available until January 24, 2014 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 Arkansas, Florida 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) | 2013 | 2013 | 2013 | 2013 | 2012 |
ASSETS | |||||
Cash and due from banks | $ 104,005 | $ 77,261 | $ 75,148 | $ 95,604 | $ 101,972 |
Interest-bearing deposits with other banks | 61,529 | 35,080 | 97,576 | 206,753 | 129,883 |
Cash and cash equivalents | 165,534 | 112,341 | 172,724 | 302,357 | 231,855 |
Federal funds sold | 4,275 | 10,700 | 2,475 | 2,850 | 17,148 |
Investment securities - available-for-sale | 1,175,484 | 839,560 | 736,406 | 724,929 | 726,223 |
Investment securities - held-to-maturity | 114,621 | 9,528 | -- | -- | -- |
Loans receivable not covered by loss share | 4,194,437 | 2,378,838 | 2,339,242 | 2,309,146 | 2,331,199 |
Loans receivable covered by FDIC loss share | 282,516 | 308,072 | 329,802 | 358,669 | 384,884 |
Allowance for loan losses | (43,815) | (38,748) | (41,450) | (45,935) | (50,632) |
Loans receivable, net | 4,433,138 | 2,648,162 | 2,627,594 | 2,621,880 | 2,665,451 |
Bank premises and equipment, net | 197,224 | 119,637 | 119,737 | 117,534 | 113,883 |
Foreclosed assets held for sale not covered by loss share | 29,869 | 14,158 | 15,985 | 18,861 | 20,393 |
Foreclosed assets held for sale covered by FDIC loss share | 20,999 | 24,320 | 27,073 | 29,928 | 31,526 |
FDIC indemnification asset | 89,611 | 101,192 | 116,071 | 126,275 | 139,646 |
Cash value of life insurance | 63,501 | 59,602 | 59,401 | 59,185 | 59,219 |
Accrued interest receivable | 22,944 | 14,275 | 14,424 | 14,367 | 16,305 |
Deferred tax asset, net | 89,412 | 46,045 | 46,655 | 40,907 | 46,998 |
Goodwill | 301,736 | 85,681 | 85,681 | 85,681 | 85,681 |
Core deposit and other intangibles | 22,298 | 9,655 | 10,457 | 11,259 | 12,061 |
Other assets | 81,215 | 66,450 | 56,654 | 69,494 | 75,741 |
Total assets | $ 6,811,861 | $ 4,161,306 | $ 4,091,337 | $ 4,225,507 | $ 4,242,130 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Liabilities | |||||
Deposits: | |||||
Demand and non-interest-bearing | $ 991,161 | $ 757,328 | $ 733,374 | $ 717,830 | $ 666,414 |
Savings and interest-bearing transaction accounts | 2,792,423 | 1,683,010 | 1,735,280 | 1,810,957 | 1,784,047 |
Time deposits | 1,609,462 | 808,480 | 856,581 | 936,649 | 1,032,991 |
Total deposits | 5,393,046 | 3,248,818 | 3,325,235 | 3,465,436 | 3,483,452 |
Federal funds purchased | -- | -- | -- | -- | -- |
Securities sold under agreements to repurchase | 160,984 | 71,307 | 73,461 | 77,194 | 66,278 |
FHLB borrowed funds | 350,661 | 270,232 | 130,251 | 130,369 | 130,388 |
Accrued interest payable and other liabilities | 5,389 | 22,714 | 25,787 | 21,020 | 17,672 |
Subordinated debentures | 60,826 | 3,093 | 3,093 | 3,093 | 28,867 |
Total liabilities | 5,970,906 | 3,616,164 | 3,557,827 | 3,697,112 | 3,726,657 |
Stockholders' equity | |||||
Common stock | 651 | 563 | 562 | 281 | 281 |
Capital surplus | 708,058 | 417,627 | 416,795 | 416,741 | 416,354 |
Retained earnings | 136,386 | 128,316 | 114,172 | 100,730 | 86,837 |
Accumulated other comprehensive income (loss) | (4,140) | (1,364) | 1,981 | 10,643 | 12,001 |
Total stockholders' equity | 840,955 | 545,142 | 533,510 | 528,395 | 515,473 |
Total liabilities and stockholders' equity | $ 6,811,861 | $ 4,161,306 | $ 4,091,337 | $ 4,225,507 | $ 4,242,130 |
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) | 2013 | 2013 | 2013 | 2013 | 2012 | 2013 | 2012 |
Interest income | |||||||
Loans | $ 65,338 | $ 45,003 | $ 44,036 | $ 44,159 | $ 41,203 | $ 198,536 | $ 159,359 |
Investment securities | |||||||
Taxable | 4,760 | 2,645 | 2,490 | 2,403 | 2,708 | 12,298 | 11,226 |
Tax-exempt | 1,554 | 1,507 | 1,467 | 1,481 | 1,544 | 6,009 | 6,154 |
Deposits - other banks | 51 | 19 | 86 | 98 | 52 | 254 | 379 |
Federal funds sold | 14 | 2 | 6 | 7 | 9 | 29 | 17 |
Total interest income | 71,717 | 49,176 | 48,085 | 48,148 | 45,516 | 217,126 | 177,135 |
Interest expense | |||||||
Interest on deposits | 3,320 | 1,810 | 2,129 | 2,485 | 2,877 | 9,744 | 14,989 |
Federal funds purchased | 1 | 3 | -- | -- | 1 | 4 | 1 |
FHLB borrowed funds | 915 | 910 | 1,012 | 1,004 | 1,030 | 3,841 | 4,364 |
Securities sold under agreements to repurchase | 171 | 87 | 86 | 80 | 79 | 424 | 407 |
Subordinated debentures | 255 | 16 | 17 | 230 | 247 | 518 | 1,774 |
Total interest expense | 4,662 | 2,826 | 3,244 | 3,799 | 4,234 | 14,531 | 21,535 |
Net interest income | 67,055 | 46,350 | 44,841 | 44,349 | 41,282 | 202,595 | 155,600 |
Provision for loan losses | 4,330 | -- | 850 | -- | 1,250 | 5,180 | 2,750 |
Net interest income after provision for loan losses | 62,725 | 46,350 | 43,991 | 44,349 | 40,032 | 197,415 | 152,850 |
Non-interest income | |||||||
Service charges on deposit accounts | 6,001 | 4,072 | 4,088 | 3,709 | 4,062 | 17,870 | 15,069 |
Other service charges and fees | 5,415 | 3,671 | 3,479 | 3,437 | 3,062 | 16,002 | 12,428 |
Mortgage lending income | 1,470 | 1,527 | 1,619 | 1,372 | 1,461 | 5,988 | 5,192 |
Insurance commissions | 778 | 519 | 444 | 679 | 368 | 2,420 | 1,869 |
Income from title services | 122 | 156 | 136 | 109 | 133 | 523 | 462 |
Increase in cash value of life insurance | 235 | 203 | 218 | 180 | 202 | 836 | 873 |
Dividends from FHLB, FRB, bankers' bank & other | 273 | 179 | 401 | 175 | 635 | 1,028 | 1,167 |
Gain on acquisitions | -- | -- | -- | -- | 5,205 | -- | 5,205 |
Gain on sale of SBA loans | -- | 79 | -- | 56 | -- | 135 | 404 |
Gain (loss) on sale of premises & equip, net | (315) | 303 | 394 | 15 | (30) | 397 | 324 |
Gain (loss) on OREO, net | 347 | 777 | 441 | 86 | 121 | 1,651 | (49) |
Gain (loss) on securities, net | -- | -- | 111 | -- | (1) | 111 | 9 |
FDIC indemnification accretion/amortization, net | (2,949) | (3,177) | (2,283) | (1,992) | 229 | (10,401) | 1,721 |
Other income | 840 | 1,009 | 757 | 1,199 | 740 | 3,805 | 3,295 |
Total non-interest income | 12,217 | 9,318 | 9,805 | 9,025 | 16,187 | 40,365 | 47,969 |
Non-interest expense | |||||||
Salaries and employee benefits | 19,504 | 12,981 | 12,957 | 12,952 | 12,348 | 58,394 | 47,289 |
Occupancy and equipment | 5,670 | 4,010 | 3,894 | 3,594 | 3,712 | 17,168 | 14,500 |
Data processing expense | 1,538 | 1,114 | 1,231 | 1,510 | 1,331 | 5,393 | 4,930 |
Other operating expenses | 28,162 | 8,610 | 7,773 | 7,807 | 12,186 | 52,352 | 35,649 |
Total non-interest expense | 54,874 | 26,715 | 25,855 | 25,863 | 29,577 | 133,307 | 102,368 |
Income before income taxes | 20,068 | 28,953 | 27,941 | 27,511 | 26,642 | 104,473 | 98,451 |
Income tax expense | 7,118 | 10,590 | 10,282 | 9,963 | 9,703 | 37,953 | 35,429 |
Net income available to all shareholders | $ 12,950 | $ 18,363 | $ 17,659 | $ 17,548 | $ 16,939 | $ 66,520 | $ 63,022 |
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) | 2013 | 2013 | 2013 | 2013 | 2012 | 2013 | 2012 |
PER SHARE DATA | |||||||
Diluted earnings per common share | $ 0.19 | $ 0.33 | $ 0.31 | $ 0.31 | $ 0.30 | $ 1.14 | $ 1.11 |
Diluted earnings per common share excluding intangible amortization | 0.21 | 0.33 | 0.32 | 0.32 | 0.31 | 1.18 | 1.14 |
Basic earnings per common share | 0.19 | 0.33 | 0.32 | 0.31 | 0.30 | 1.15 | 1.12 |
Dividends per share - common | 0.075 | 0.075 | 0.075 | 0.065 | 0.130 | 0.290 | 0.290 |
Book value per common share | 12.92 | 9.69 | 9.49 | 9.40 | 9.17 | 12.92 | 9.17 |
Tangible book value per common share | 7.94 | 7.99 | 7.78 | 7.67 | 7.43 | 7.94 | 7.43 |
STOCK INFORMATION | |||||||
Average common shares outstanding | 62,865 | 56,256 | 56,234 | 56,222 | 56,145 | 57,908 | 56,274 |
Average diluted shares outstanding | 63,234 | 56,620 | 56,577 | 56,535 | 56,486 | 58,252 | 56,630 |
End of period common shares outstanding | 65,082 | 56,278 | 56,243 | 56,229 | 56,213 | 65,082 | 56,213 |
ANNUALIZED PERFORMANCE METRICS | |||||||
Return on average assets | 0.83% | 1.80% | 1.71% | 1.70% | 1.67% | 1.43% | 1.58% |
Return on average assets excluding intangible amortization | 0.91% | 1.89% | 1.80% | 1.79% | 1.75% | 1.52% | 1.66% |
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) | 2.86% | 3.09% | 2.93% | 2.77% | 2.88% | 2.91% | 2.72% |
Return on average common equity | 6.68% | 13.63% | 13.27% | 13.68% | 13.19% | 11.27% | 12.75% |
Return on average tangible common equity excluding intangible amortization | 10.83% | 17.04% | 16.65% | 17.29% | 16.46% | 15.26% | 15.87% |
Efficiency ratio | 66.73% | 45.67% | 44.98% | 46.03% | 49.21% | 52.44% | 47.88% |
Core efficiency ratio | 45.22% | 44.76% | 45.76% | 46.39% | 44.40% | 45.49% | 45.73% |
Net interest margin - FTE | 5.09% | 5.41% | 5.18% | 5.15% | 4.86% | 5.19% | 4.70% |
Fully taxable equivalent adjustment | $ 1,133 | $ 1,073 | $ 1,051 | $ 1,075 | $ 1,122 | $ 4,332 | $ 4,475 |
Total revenue | 83,934 | 58,494 | 57,890 | 57,173 | 61,703 | 257,491 | 225,104 |
EARNINGS EXCLUDING | |||||||
INTANGIBLE AMORTIZATION | |||||||
GAAP net income available to common shareholders | $ 12,950 | $ 18,363 | $ 17,659 | $ 17,548 | $ 16,939 | $ 66,520 | $ 63,022 |
Intangible amortization after-tax | 740 | 487 | 488 | 487 | 452 | 2,202 | 1,678 |
Earnings excluding intangible amortization | $ 13,690 | $ 18,850 | $ 18,147 | $ 18,035 | $ 17,391 | $ 68,722 | $ 64,700 |
GAAP diluted earnings per share | $ 0.19 | $ 0.33 | $ 0.31 | $ 0.31 | $ 0.30 | $ 1.14 | $ 1.11 |
Intangible amortization after-tax | 0.02 | -- | 0.01 | 0.01 | 0.01 | 0.04 | 0.03 |
Diluted earnings per share excluding intangible amortization | $ 0.21 | $ 0.33 | $ 0.32 | $ 0.32 | $ 0.31 | $ 1.18 | $ 1.14 |
OTHER OPERATING EXPENSES | |||||||
Advertising | $ 653 | $ 363 | $ 120 | $ 693 | $ 549 | $ 1,829 | $ 2,447 |
Merger and acquisition expenses | 17,315 | 1,034 | 1 | 28 | 5,169 | 18,378 | 7,157 |
Amortization of intangibles | 1,218 | 802 | 802 | 802 | 743 | 3,624 | 2,761 |
Electronic banking expense | 1,458 | 926 | 960 | 863 | 845 | 4,207 | 3,175 |
Directors' fees | 179 | 188 | 210 | 190 | 196 | 767 | 807 |
Due from bank service charges | 179 | 136 | 168 | 133 | 124 | 616 | 536 |
FDIC and state assessment | 858 | 684 | 677 | 630 | 571 | 2,849 | 2,313 |
Insurance | 756 | 572 | 555 | 566 | 501 | 2,449 | 1,774 |
Legal and accounting | 450 | 227 | 394 | 322 | 225 | 1,393 | 1,065 |
Other professional fees | 561 | 404 | 490 | 473 | 392 | 1,928 | 1,655 |
Operating supplies | 455 | 309 | 332 | 343 | 299 | 1,439 | 1,134 |
Postage | 295 | 212 | 231 | 207 | 216 | 945 | 896 |
Telephone | 375 | 291 | 291 | 303 | 282 | 1,260 | 1,074 |
Other expense | 3,410 | 2,462 | 2,542 | 2,254 | 2,074 | 10,668 | 8,855 |
Total other operating expenses | $ 28,162 | $ 8,610 | $ 7,773 | $ 7,807 | $ 12,186 | $ 52,352 | $ 35,649 |
Home BancShares, Inc. | |||||
Selected Financial Information | |||||
(Unaudited) | |||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |
(Dollars in thousands) | 2013 | 2013 | 2013 | 2013 | 2012 |
BALANCE SHEET RATIOS | |||||
Total loans to total deposits | 83.01% | 82.70% | 80.27% | 76.98% | 77.97% |
Common equity to assets | 12.3% | 13.1% | 13.0% | 12.5% | 12.2% |
Tangible common equity to tangible assets | 8.0% | 11.1% | 10.9% | 10.5% | 10.1% |
ALLOWANCE FOR LOAN LOSSES | |||||
Non-Covered | |||||
Balance, beginning of period | $ 37,642 | $ 40,498 | $ 42,302 | $ 45,170 | $ 47,292 |
Loans charged off | 2,417 | 5,101 | 3,361 | 3,318 | 3,739 |
Recoveries of loans previously charged off | 358 | 2,245 | 807 | 450 | 367 |
Net loans charged off | 2,059 | 2,856 | 2,554 | 2,868 | 3,372 |
Provision for loan losses | 3,439 | -- | 750 | -- | 1,250 |
Balance, end of period | $ 39,022 | $ 37,642 | $ 40,498 | $ 42,302 | $ 45,170 |
Discount for credit losses on non-covered loans acquired | 174,637 | 77,413 | 80,322 | 80,305 | 81,717 |
Net charge-offs on loans not covered by loss share to average non-covered loans | 0.22% | 0.48% | 0.44% | 0.50% | 0.61% |
Allowance for loan losses for non-covered loans to total non-covered loans | 0.93% | 1.58% | 1.73% | 1.83% | 1.94% |
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 | 4.89% | 4.68% | 4.99% | 5.13% | 5.26% |
Covered | |||||
Balance, beginning of period | $ 1,106 | $ 952 | $ 3,633 | $ 5,462 | $ 7,148 |
Loans charged off | 287 | -- | 3,187 | 1,840 | 1,688 |
Recoveries of loans previously charged off | 29 | 154 | 6 | 11 | 2 |
Net loans charged off | 258 | (154) | 3,181 | 1,829 | 1,686 |
Provision for loan losses before benefit attributable to FDIC loss share agreements | 3,945 | -- | 500 | -- | -- |
Benefit attributable to FDIC loss share agreements | (3,054) | -- | (400) | -- | -- |
Net provision for loan losses | 891 | -- | 100 | -- | -- |
Increase in FDIC indemnification asset | 3,054 | -- | 400 | -- | -- |
Balance, end of period | $ 4,793 | $ 1,106 | $ 952 | $ 3,633 | $ 5,462 |
Total Allowance for Loan Losses | $ 43,815 | $ 38,748 | $ 41,450 | $ 45,935 | $ 50,632 |
NON-PERFORMING ASSETS | |||||
NOT COVERED BY LOSS SHARE | |||||
Non-performing non-covered loans | |||||
Non-accrual non-covered loans | $ 15,133 | $ 17,187 | $ 17,798 | $ 19,078 | $ 21,336 |
Non-covered loans past due 90 days or more | 23,141 | 11,248 | 11,514 | 6,692 | 5,937 |
Total non-performing non-covered loans | 38,274 | 28,435 | 29,312 | 25,770 | 27,273 |
Other non-performing non-covered assets | |||||
Non-covered foreclosed assets held for sale, net | 29,869 | 14,158 | 15,985 | 18,861 | 20,393 |
Other non-performing non-covered assets | 281 | 185 | 172 | 285 | 164 |
Total other non-performing non-covered assets | 30,150 | 14,343 | 16,157 | 19,146 | 20,557 |
Total non-performing non-covered assets | $ 68,424 | $ 42,778 | $ 45,469 | $ 44,916 | $ 47,830 |
Allowance for loan losses for non-covered loans to non-performing non-covered loans | 101.95% | 132.38% | 138.16% | 164.15% | 165.62% |
Non-performing non-covered loans to total non-covered loans | 0.91% | 1.20% | 1.25% | 1.12% | 1.17% |
Non-performing non-covered assets to total non-covered assets | 1.07% | 1.15% | 1.26% | 1.21% | 1.30% |
Home BancShares, Inc. | |||||
Loan Information | |||||
(Unaudited) | |||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |
(Dollars in thousands) | 2013 | 2013 | 2013 | 2013 | 2012 |
LOANS NOT COVERED BY LOSS SHARE | |||||
Real estate | |||||
Commercial real estate loans | |||||
Non-farm/non-residential | $ 1,739,668 | $ 1,026,937 | $ 1,003,391 | $ 1,014,301 | $ 1,019,039 |
Construction/land development | 562,667 | 314,232 | 281,994 | 254,673 | 254,800 |
Agricultural | 81,618 | 31,906 | 31,119 | 34,288 | 32,513 |
Residential real estate loans | |||||
Residential 1-4 family | 913,332 | 529,732 | 528,260 | 531,698 | 549,269 |
Multifamily residential | 213,232 | 117,639 | 120,899 | 122,998 | 129,742 |
Total real estate | 3,510,517 | 2,020,446 | 1,965,663 | 1,957,958 | 1,985,363 |
Consumer | 69,570 | 30,478 | 32,671 | 33,823 | 37,462 |
Commercial and industrial | 511,421 | 268,900 | 287,351 | 269,463 | 256,908 |
Agricultural | 37,129 | 30,612 | 26,462 | 16,573 | 19,825 |
Other | 65,800 | 28,402 | 27,095 | 31,329 | 31,641 |
Loans receivable not covered by loss share | $ 4,194,437 | $ 2,378,838 | $ 2,339,242 | $ 2,309,146 | $ 2,331,199 |
LOANS COVERED BY LOSS SHARE | |||||
Real estate | |||||
Commercial real estate loans | |||||
Non-farm/non-residential | $ 117,164 | $ 134,843 | $ 143,922 | $ 155,345 | $ 164,723 |
Construction/land development | 48,388 | 51,492 | 56,447 | 58,384 | 66,713 |
Agricultural | 1,232 | 1,253 | 1,784 | 2,256 | 2,282 |
Residential real estate loans | |||||
Residential 1-4 family | 98,403 | 102,673 | 107,612 | 120,246 | 125,625 |
Multifamily residential | 10,378 | 10,525 | 10,644 | 9,443 | 9,567 |
Total real estate | 275,565 | 300,786 | 320,409 | 345,674 | 368,910 |
Consumer | 20 | 17 | 20 | 28 | 39 |
Commercial and industrial | 5,852 | 6,291 | 8,193 | 11,712 | 14,668 |
Agricultural | -- | -- | -- | -- | -- |
Other | 1,079 | 978 | 1,180 | 1,255 | 1,267 |
Loans receivable covered by loss share | $ 282,516 | $ 308,072 | $ 329,802 | $ 358,669 | $ 384,884 |
Home BancShares, Inc. | ||||||
Consolidated Net Interest Margin | ||||||
(Unaudited) | ||||||
Three Months Ended | ||||||
December 31, 2013 | September 30, 2013 | |||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate |
ASSETS | ||||||
Earning assets | ||||||
Interest-bearing balances due from banks | $ 85,360 | $ 51 | 0.24% | $ 40,756 | $ 19 | 0.18% |
Federal funds sold | 24,180 | 14 | 0.23% | 4,411 | 2 | 0.18% |
Investment securities - taxable | 944,786 | 4,760 | 2.00% | 579,867 | 2,645 | 1.81% |
Investment securities - non-taxable - FTE | 270,606 | 2,539 | 3.72% | 183,341 | 2,462 | 5.33% |
Loans receivable - FTE | 3,994,744 | 65,486 | 6.50% | 2,668,421 | 45,121 | 6.71% |
Total interest-earning assets | 5,319,676 | 72,850 | 5.43% | 3,476,796 | 50,249 | 5.73% |
Non-earning assets | 894,828 | 569,829 | ||||
Total assets | $ 6,214,504 | $ 4,046,625 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Liabilities | ||||||
Interest-bearing liabilities | ||||||
Savings and interest-bearing transaction accounts | $ 2,510,593 | $ 1,245 | 0.20% | $ 1,691,077 | $ 637 | 0.15% |
Time deposits | 1,430,625 | 2,075 | 0.58% | 832,149 | 1,173 | 0.56% |
Total interest-bearing deposits | 3,941,218 | 3,320 | 0.33% | 2,523,226 | 1,810 | 0.28% |
Federal funds purchased | 552 | 1 | 0.00% | 1,511 | 3 | 0.00% |
Securities sold under agreement to repurchase | 135,569 | 171 | 0.50% | 73,924 | 87 | 0.47% |
FHLB borrowed funds | 357,922 | 915 | 1.01% | 144,467 | 910 | 2.50% |
Subordinated debentures | 46,393 | 255 | 2.18% | 3,093 | 16 | 2.05% |
Total interest-bearing liabilities | 4,481,654 | 4,662 | 0.41% | 2,746,221 | 2,826 | 0.41% |
Non-interest bearing liabilities | ||||||
Non-interest bearing deposits | 931,918 | 738,526 | ||||
Other liabilities | 31,312 | 27,315 | ||||
Total liabilities | 5,444,884 | 3,512,062 | ||||
Shareholders' equity | 769,620 | 534,563 | ||||
Total liabilities and shareholders' equity | $ 6,214,504 | $ 4,046,625 | ||||
Net interest spread | 5.02% | 5.32% | ||||
Net interest income and margin - FTE | $ 68,188 | 5.09% | $ 47,423 | 5.41% |
Home BancShares, Inc. | ||||||
Consolidated Net Interest Margin | ||||||
(Unaudited) | ||||||
Year Ended | ||||||
December 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 | $ 102,777 | $ 254 | 0.25% | $ 165,862 | $ 379 | 0.23% |
Federal funds sold | 13,619 | 29 | 0.21% | 7,175 | 17 | 0.24% |
Investment securities - taxable | 665,495 | 12,298 | 1.85% | 580,826 | 11,226 | 1.93% |
Investment securities - non-taxable - FTE | 198,198 | 9,814 | 4.95% | 158,231 | 10,023 | 6.33% |
Loans receivable - FTE | 3,005,470 | 199,063 | 6.62% | 2,490,901 | 159,965 | 6.42% |
Total interest-earning assets | 3,985,559 | 221,458 | 5.56% | 3,402,995 | 181,610 | 5.34% |
Non-earning assets | 668,656 | 575,728 | ||||
Total assets | $ 4,654,215 | $ 3,978,723 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Liabilities | ||||||
Interest-bearing liabilities | ||||||
Savings and interest-bearing transaction accounts | $ 1,939,497 | $ 3,437 | 0.18% | $ 1,501,093 | $ 3,572 | 0.24% |
Time deposits | 1,038,246 | 6,307 | 0.61% | 1,148,072 | 11,417 | 0.99% |
Total interest-bearing deposits | 2,977,743 | 9,744 | 0.33% | 2,649,165 | 14,989 | 0.57% |
Federal funds purchased | 520 | 4 | 0.00% | 273 | 1 | 0.00% |
Securities sold under agreement to repurchase | 88,081 | 424 | 0.48% | 67,040 | 407 | 0.61% |
FHLB borrowed funds | 191,258 | 3,841 | 2.01% | 136,312 | 4,364 | 3.20% |
Subordinated debentures | 19,938 | 518 | 2.60% | 39,852 | 1,774 | 4.45% |
Total interest-bearing liabilities | 3,277,540 | 14,531 | 0.44% | 2,892,642 | 21,535 | 0.74% |
Non-interest bearing liabilities | ||||||
Non-interest bearing deposits | 761,540 | 569,017 | ||||
Other liabilities | 25,071 | 22,946 | ||||
Total liabilities | 4,064,151 | 3,484,605 | ||||
Shareholders' equity | 590,064 | 494,118 | ||||
Total liabilities and shareholders' equity | $ 4,654,215 | $ 3,978,723 | ||||
Net interest spread | 5.12% | 4.60% | ||||
Net interest income and margin - FTE | $ 206,927 | 5.19% | $ 160,075 | 4.70% |