Home BancShares, Inc. Announces Record Quarterly Profit of $28.4 Million

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| Source: Home BancShares, Inc.

CONWAY, Ark., July 17, 2014 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced a record quarterly profit of $28.4 million, or $0.43 diluted earnings per share for the second quarter of 2014 compared to $17.7 million or $0.31 diluted earnings per share for the same quarter in 2013. The Company increased its second quarter earnings by $10.8 million or 61.0% for the three months ended June 30, 2014 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 share excluding intangible amortization for the second quarter of 2014 was $0.44 compared to $0.32 diluted earnings per share excluding intangible amortization for the same period in 2013.

"I am pleased to report the Company has again accomplished another record quarter," said John Allison, Chairman. "During the upcoming quarters, we recognize there is a need for organic loan growth. We are encouraged by the opportunities we have in front of us because we currently have the largest unfunded loan pipeline in our history. For the Florida Traditions acquisition, we plan to achieve the anticipated cost savings as quickly as possible in order to maximize the returns to our shareholders."

Randy Sims, Chief Executive Officer, added, "When compared to the second quarter of 2013, we are delighted to report our diluted earnings per share and net interest margin improved 12 cents and 32 basis points, respectively, during the quarter just ended. For the thirteenth consecutive quarter, excluding merger expenses, we have again reported the most profitable quarter in the Company's history. Additionally, two outstanding metrics were a 41.56% core efficiency ratio and a 1.70% return on average assets for the second quarter of 2014. These improvements and metrics reported by the Company during the second quarter of 2014 are impressive."

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 second quarter 2014 impairment testing, there were FDIC loss sharing pools evaluated by the Company which were determined to have a material projected credit improvement. As a result of this improvement, the Company will recognize approximately $23.4 million as an adjustment to yield over the weighted average life of the loans ($3.7 million was recognized during the second quarter of 2014). 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 $17.3 million ($3.0 million was recognized for the second quarter of 2014) and increase our FDIC true-up liability by $1.1 million ($42,000 was recognized for the second quarter of 2014). The $17.3 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 $1.1 million will be expensed over the remaining true-up measurement date as other non-interest expense.

Net interest income for the second quarter of 2014 increased 74.0% to $78.0 million from $44.8 million during the second quarter of 2013. For the second quarter of 2014, the effective yield on non-covered loans and covered loans was 6.08% and 19.38%, respectively. Net interest margin, on a fully taxable equivalent basis, was 5.50% for the quarter just ended compared to 5.18% in the second quarter of 2013, an increase of 32 basis points. The pools which have been determined to have material projected credit improvement as a result of the quarterly impairment testing and the acquisition of Liberty have significantly changed the mix and metrics on the net interest margin since December 31, 2012. Although there have been many changes since 2012, the Company continues to remain focused on expanding its net interest margin through opportunities such as improved pricing on interest-bearing deposits.

The Company experienced a $5.4 million increase in the provision for loan losses for non-covered loans during the second quarter of 2014 versus 2013. This expected increase is not an indication of a decline in asset quality, but primarily a reflection of the migration of the Liberty loans from purchased loan accounting treatment to originated loan accounting treatment. Based upon current accounting guidance the allowance for loan losses is not carried over in an acquisition. As a result, virtually none of the Liberty footprint loans had any allocation of the allowance for loan losses at year end. This is the result of all loans acquired on October 24, 2013 from Liberty being recorded at fair value in accordance with the fair value methodology prescribed in ASC Topic 820. However, as the acquired Liberty loans payoff or renew and the Liberty footprint originates new loan production, it is necessary to establish an allowance which represents an amount that, in management's judgment, will be adequate to absorb credit losses.

The Company reported $11.5 million of non-interest income for the second quarter of 2014, compared to $9.8 million for the second quarter of 2013. The most important components of the second quarter non-interest income were $6.2 million from service charges on deposits accounts, $6.0 million from other service charges and fees, $1.8 million from mortgage lending income, $934,000 from insurance commissions, $859,000 from gain on sale of OREO, $793,000 from other income, $445,000 gain on sale of premises and equipment and $323,000 from trust fees offset by the $6.6 million of net amortization on the FDIC indemnification asset.

Non-interest expense for the second quarter of 2014 was $38.6 million compared to $25.9 million for the second quarter of 2013. These increases are primarily associated with the acquisition of Liberty during the fourth quarter of 2013. For the second quarter of 2014, our core efficiency ratio was 41.56% which is improved from the 45.76% reported for second quarter of 2013.

Financial Condition

Total non-covered loans were $4.13 billion at June 30, 2014 compared to $4.19 billion at December 31, 2013. Total covered loans were $263.2 million at June 30, 2014 compared to $282.5 million at December 31, 2013. Total deposits were $5.19 billion at June 30, 2014 compared to $5.39 billion at December 31, 2013. Total assets were $6.67 billion at June 30, 2014 compared to $6.81 billion at December 31, 2013.

Non-performing non-covered loans were $45.0 million as of June 30, 2014, of which $20.7 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 1.09% as of June 30, 2014 compared to 0.91% as of December 31, 2013. Non-performing non-covered assets were $66.0 million as of June 30, 2014, of which $26.4 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 1.04% as of June 30, 2014 compared to 1.07% as of December 31, 2013.

The Company's allowance for loan losses for non-covered loans was $48.2 million at June 30, 2014, or 1.17% of total non-covered loans, compared to $39.0 million, or 0.93% of total non-covered loans, at December 31, 2013. As of June 30, 2014 and December 31, 2013, 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 4.80% and 4.89%, respectively. As of June 30, 2014 and December 31, 2013, the Company's allowance for loan losses for non-covered loans was 107% and 102% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $897.2 million at June 30, 2014 compared to $841.0 million at December 31, 2013, an increase of $56.3 million. Book value per common share was $13.77 at June 30, 2014 compared to $12.92 at December 31, 2013. Tangible book value per common share was $8.83 at June 30, 2014 compared to $7.94 December 31, 2013.

Branches

During the second quarter of 2014, in an effort to achieve efficiencies primarily from the recent acquisitions, the Company closed or merged four Arkansas and two Florida locations. The Company currently has plans for an additional de novo branch location in Naples, Florida, scheduled to open during the third quarter. The Company currently has 83 branches in Arkansas, 50 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 17, 2014. Interested parties can listen to this call by calling 1-877-508-9586 and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-344-7529, Passcode: 10048164, which will be available until July 25, 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, 2013 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) 
           
   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30, 
 (In thousands)   2014   2014   2013   2013   2013 
           
ASSETS          
           
Cash and due from banks   $ 122,167  $ 124,662  $ 104,005  $ 77,261  $ 75,148
Interest-bearing deposits with other banks   21,385  89,897  61,529  35,080  97,576
Cash and cash equivalents   143,552  214,559  165,534  112,341  172,724
Federal funds sold   850  22,925  4,275  10,700  2,475
Investment securities - available-for-sale   1,122,803  1,175,827  1,175,484  839,560  736,406
Investment securities - held-to-maturity   205,566  132,363  114,621  9,528  -- 
Loans receivable not covered by loss share   4,133,109  4,126,564  4,194,437  2,378,838  2,339,242
Loans receivable covered by FDIC loss share   263,157  270,641  282,516  308,072  329,802
Allowance for loan losses   (51,173)  (48,991)  (43,815)  (38,748)  (41,450)
Loans receivable, net   4,345,093  4,348,214  4,433,138  2,648,162  2,627,594
Bank premises and equipment, net   196,194  196,392  197,224  119,637  119,737
Foreclosed assets held for sale not covered by loss share   20,960  23,484  29,869  14,158  15,985
Foreclosed assets held for sale covered by FDIC loss share   17,196  20,201  20,999  24,320  27,073
FDIC indemnification asset   56,626  73,348  89,611  101,192  116,071
Cash value of life insurance   64,066  63,787  63,501  59,602  59,401
Accrued interest receivable   20,847  21,865  22,944  14,275  14,424
Deferred tax asset, net   73,151  82,886  89,412  46,045  46,655
Goodwill   301,736  301,736  301,736  85,681  85,681
Core deposit and other intangibles   19,984  21,131  22,298  9,655  10,457
Other assets   77,516  82,058  81,215  66,450  56,654
Total assets   $ 6,666,140  $ 6,780,776  $ 6,811,861  $ 4,161,306  $ 4,091,337
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
Liabilities          
Deposits:           
Demand and non-interest-bearing   $ 1,129,073  $ 1,057,148  $ 991,161  $ 757,328  $ 733,374
Savings and interest-bearing transaction accounts   2,756,060  2,827,787  2,792,423  1,683,010  1,735,280
Time deposits   1,306,876  1,453,575  1,609,462  808,480  856,581
Total deposits   5,192,009  5,338,510  5,393,046  3,248,818  3,325,235
Federal funds purchased   --   --   --   --   -- 
Securities sold under agreements to repurchase   144,602  137,524  160,984  71,307  73,461
FHLB borrowed funds   349,110  354,935  350,661  270,232  130,251
Accrued interest payable and other liabilities   22,358  20,113  5,389  22,714  25,787
Subordinated debentures   60,826  60,826  60,826  3,093  3,093
Total liabilities   5,768,905  5,911,908  5,970,906  3,616,164  3,557,827
           
Stockholders' equity           
Common stock   651  651  651  563  562
Capital surplus   709,516  708,868  708,058  417,627  416,795
Retained earnings   182,382  158,838  136,386  128,316  114,172
Accumulated other comprehensive income (loss)   4,686  511  (4,140)  (1,364)  1,981
Total stockholders' equity   897,235  868,868  840,955  545,142  533,510
Total liabilities and stockholders' equity   $ 6,666,140  $ 6,780,776  $ 6,811,861  $ 4,161,306  $ 4,091,337
 
 
 
Home BancShares, Inc. 
Consolidated Statements of Income 
(Unaudited) 
               
   Quarter Ended   Six Months Ended 
   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Jun. 30,   Jun. 30, 
 (In thousands)   2014   2014   2013   2013   2013   2014   2013 
               
               
Interest income               
Loans   $ 75,404  $ 75,013  $ 65,338  $ 45,003  $ 44,036  $ 150,417  $ 88,195
Investment securities               
Taxable   4,762  4,470  4,760  2,645  2,490  9,232  4,893
Tax-exempt   2,379  2,317  1,554  1,507  1,467  4,696  2,948
Deposits - other banks   29  24  51  19  86  53  184
Federal funds sold   12  16  14  2  6  28  13
               
Total interest income   82,586  81,840  71,717  49,176  48,085  164,426  96,233
               
Interest expense               
Interest on deposits   3,095  3,384  3,320  1,810  2,129  6,479  4,614
Federal funds purchased   --   --   1  3  --   --   -- 
FHLB borrowed funds   952  946  915  910  1,012  1,898  2,016
Securities sold under agreements to repurchase   168  182  171  87  86  350  166
Subordinated debentures   328  328  255  16  17  656  247
               
Total interest expense   4,543  4,840  4,662  2,826  3,244  9,383  7,043
               
Net interest income   78,043  77,000  67,055  46,350  44,841  155,043  89,190
Provision for loan losses   6,115  6,938  4,330  --   850  13,053  850
Net interest income after provision for loan losses   71,928  70,062  62,725  46,350  43,991  141,990  88,340
               
Non-interest income               
Service charges on deposit accounts   6,193  5,911  6,001  4,072  4,088  12,104  7,797
Other service charges and fees   5,978  5,686  5,146  3,671  3,479  11,664  6,916
Trust fees   323  436  284  15  17  759  36
Mortgage lending income   1,801  1,513  1,470  1,527  1,619  3,314  2,991
Insurance commissions   934  1,416  778  519  444  2,350  1,123
Income from title services   53  50  122  156  136  103  245
Increase in cash value of life insurance   281  288  235  203  218  569  398
Dividends from FHLB, FRB, Bankers' bank & other   501  316  273  179  401  817  576
Gain on sale of SBA loans   --   --   --   79  --   --   56
Gain (loss) on sale of premises & equipment, net   445  9  (315)  303  394  454  409
Gain (loss) on OREO, net   859  539  347  777  441  1,398  527
Gain (loss) on securities, net   --   --   --   --   111  --   111
FDIC indemnification accretion/(amortization), net   (6,622)  (4,744)  (2,949)  (3,177)  (2,283)  (11,366)  (4,275)
Other income   793  761  825  994  740  1,554  1,920
               
Total non-interest income   11,539  12,181  12,217  9,318  9,805  23,720  18,830
               
Non-interest expense               
Salaries and employee benefits   18,813  18,933  19,504  12,981  12,957  37,746  25,909
Occupancy and equipment   6,251  6,226  5,670  4,010  3,894  12,477  7,488
Data processing expense   1,793  1,793  1,538  1,114  1,231  3,586  2,741
Other operating expenses   11,763  12,405  28,162  8,610  7,773  24,168  15,580
               
Total non-interest expense   38,620  39,357  54,874  26,715  25,855  77,977  51,718
               
Income before income taxes   44,847  42,886  20,068  28,953  27,941  87,733  55,452
Income tax expense   16,418  15,549  7,118  10,590  10,282  31,967  20,245
Net income   $ 28,429  $ 27,337  $ 12,950  $ 18,363  $ 17,659  $ 55,766  $ 35,207
 
 
 
Home BancShares, Inc. 
Selected Financial Information 
(Unaudited) 
               
   Quarter Ended  Six Months Ended
   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Jun. 30,   Jun. 30, 
(Dollars and shares in thousands, except per share data)   2014   2014   2013   2013   2013   2014   2013 
               
               
PER SHARE DATA              
               
Diluted earnings per common share   $ 0.43  $ 0.42  $ 0.19  $ 0.33  $ 0.31  $ 0.85  $ 0.62
Diluted earnings per common share excluding intangible amortization   0.44  0.43  0.21  0.33  0.32  0.87  0.64
Basic earnings per common share   0.44  0.42  0.19  0.33  0.32  0.86  0.63
Dividends per share - common   0.075  0.075  0.075  0.075  0.075  0.150  0.140
Book value per common share   13.77  13.34  12.92  9.69  9.49  13.77  9.49
Tangible book value per common share   8.83  8.38  7.94  7.99  7.78  8.83  7.78
               
STOCK INFORMATION              
               
Average common shares outstanding   65,140  65,123  62,865  56,256  56,234  65,131  56,228
Average diluted shares outstanding   65,545  65,511  63,234  56,620  56,577  65,523  56,555
End of period common shares outstanding   65,142  65,135  65,082  56,278  56,243  65,142  56,243
               
ANNUALIZED PERFORMANCE METRICS              
               
Return on average assets  1.70% 1.64% 0.83% 1.80% 1.71% 1.67% 1.70%
Return on average assets excluding intangible amortization  1.83% 1.77% 0.91% 1.89% 1.80% 1.80% 1.79%
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)  3.27% 3.26% 2.86% 3.09% 2.93% 3.27% 2.85%
Return on average common equity  12.96% 13.00% 6.68% 13.63% 13.27% 12.98% 13.47%
Return on average tangible common equity excluding intangible amortization  20.94% 21.48% 10.83% 17.04% 16.65% 21.20% 16.97%
Efficiency ratio  41.09% 42.07% 66.73% 45.67% 44.98% 41.58% 45.50%
Core efficiency ratio  41.56% 41.39% 45.22% 44.76% 45.76% 41.48% 46.07%
Net interest margin - FTE  5.50% 5.48% 5.09% 5.41% 5.18% 5.49% 5.16%
Fully taxable equivalent adjustment   $ 1,624  $ 1,591  $ 1,133  $ 1,073  $ 1,051  $ 3,215  $ 2,126
Total revenue   94,125  94,021  83,934  58,494  57,890  188,146  115,063
               
EARNINGS EXCLUDING              
INTANGIBLE AMORTIZATION              
               
GAAP net income available to common shareholders   $ 28,429  $ 27,337  $ 12,950  $ 18,363  $ 17,659  $ 55,766  $ 35,207
Intangible amortization after-tax   697  709  740  487  488  1,406  975
Earnings excluding intangible amortization   $ 29,126  $ 28,046  $ 13,690  $ 18,850  $ 18,147  $ 57,172  $ 36,182
               
GAAP diluted earnings per share   $ 0.43  $ 0.42  $ 0.19  $ 0.33  $ 0.31  $ 0.85  $ 0.62
Intangible amortization after-tax   0.01  0.01  0.02  --   0.01  0.02  0.02
Diluted earnings per share excluding intangible amortization   $ 0.44  $ 0.43  $ 0.21  $ 0.33  $ 0.32  $ 0.87  $ 0.64
               
OTHER OPERATING EXPENSES              
               
Advertising   $ 581  $ 522  $ 653  $ 363  $ 120  $ 1,103  $ 813
Merger and acquisition expenses   106  849  17,315  1,034  1  955  29
Amortization of intangibles   1,147  1,167  1,218  802  802  2,314  1,604
Electronic banking expense   1,312  1,338  1,458  926  960  2,650  1,823
Directors' fees   206  227  179  188  210  433  400
Due from bank service charges   205  199  179  136  168  404  301
FDIC and state assessment   1,058  1,114  858  684  677  2,172  1,307
Insurance   582  614  756  572  555  1,196  1,121
Legal and accounting   419  417  450  227  394  836  716
Other professional fees   583  507  561  404  490  1,090  963
Operating supplies   515  472  455  309  332  987  675
Postage   327  352  295  212  231  679  438
Telephone   463  454  375  291  291  917  594
Other expense   4,259  4,173  3,410  2,462  2,542  8,432  4,796
               
Total other operating expenses   $ 11,763  $ 12,405  $ 28,162  $ 8,610  $ 7,773  $ 24,168  $ 15,580
 
 
 
Home BancShares, Inc. 
Selected Financial Information 
(Unaudited) 
           
   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30, 
(Dollars in thousands)   2014   2014   2013   2013   2013 
           
BALANCE SHEET RATIOS          
           
Total loans to total deposits  84.67% 82.37% 83.01% 82.70% 80.27%
Common equity to assets  13.5% 12.8% 12.3% 13.1% 13.0%
Tangible common equity to tangible assets  9.1% 8.5% 8.0% 11.1% 10.9%
           
ALLOWANCE FOR LOAN LOSSES          
           
Non-Covered           
Balance, beginning of period   $ 44,024  $ 39,022  $ 37,642  $ 40,498  $ 42,302
Loans charged off   2,526  2,424  2,417  5,101  3,361
Recoveries of loans previously charged off   635  488  358  2,245  807
Net loans charged off   1,891  1,936  2,059  2,856  2,554
Provision for loan losses   6,115  6,938  3,439  --   750
Balance, end of period   $ 48,248  $ 44,024  $ 39,022  $ 37,642  $ 40,498
           
Discount for credit losses on non-covered loans acquired   157,705  164,324  174,637  77,413  80,322
Net charge-offs on loans not covered by loss share to average non-covered loans  0.18% 0.19% 0.22% 0.48% 0.44%
Allowance for loan losses for non-covered loans to total non-covered loans  1.17% 1.07% 0.93% 1.58% 1.73%
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  4.80% 4.86% 4.89% 4.68% 4.99%
           
Covered          
Balance, beginning of period   $ 4,967  $ 4,793  $ 1,106  $ 952  $ 3,633
Loans charged off   1,051  --   287  --   3,187
Recoveries of loans previously charged off   128  174  29  154  6
Net loans charged off/(recovered)   923  (174)  258  (154)  3,181
Provision for loan losses forecasted outside of loss share   280  --   --   --   -- 
Provision for loan losses before benefit attributable to FDIC loss share agreements   (1,399)  --   3,945  --   500
Benefit attributable to FDIC loss share agreements   1,119  --   (3,054)  --   (400)
Net provision for loan losses   --   --   891  --   100
Increase (decrease) in FDIC indemnification asset   (1,119)  --   3,054  --   400
Balance, end of period   $ 2,925  $ 4,967  $ 4,793  $ 1,106  $ 952
           
Total allowance for loan losses   $ 51,173  $ 48,991  $ 43,815  $ 38,748  $ 41,450
           
NON-PERFORMING ASSETS          
NOT COVERED BY LOSS SHARE          
           
Non-performing non-covered loans           
Non-accrual non-covered loans   $ 21,900  $ 20,697  $ 15,133  $ 17,187  $ 17,798
Non-covered loans past due 90 days or more   23,081  21,981  23,141  11,248  11,514
Total non-performing non-covered loans   44,981  42,678  38,274  28,435  29,312
Other non-performing non-covered assets           
Non-covered foreclosed assets held for sale, net   20,960  23,484  29,869  14,158  15,985
Other non-performing non-covered assets   10  47  281  185  172
Total other non-performing non-covered assets   20,970  23,531  30,150  14,343  16,157
Total non-performing non-covered assets   $ 65,951  $ 66,209  $ 68,424  $ 42,778  $ 45,469
           
Allowance for loan losses for non-covered loans to non-performing non-covered loans  107.26% 103.15% 101.95% 132.38% 138.16%
Non-performing non-covered loans to total non-covered loans  1.09% 1.03% 0.91% 1.20% 1.25%
Non-performing non-covered assets to total non-covered assets  1.04% 1.03% 1.07% 1.15% 1.26%
 
 
 
Home BancShares, Inc. 
Loan Information 
(Unaudited) 
           
   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30, 
(Dollars in thousands)   2014   2014   2013   2013   2013 
           
           
LOANS NOT COVERED BY LOSS SHARE          
           
Real estate           
Commercial real estate loans           
Non-farm/non-residential   $ 1,733,029  $ 1,722,910  $ 1,739,668  $ 1,026,937  $ 1,003,391
Construction/land development   603,216  566,205  562,667  314,232  281,994
Agricultural   64,409  74,775  81,618  31,906  31,119
Residential real estate loans           
Residential 1-4 family   887,097  890,981  913,332  529,732  528,260
Multifamily residential   218,615  206,348  213,232  117,639  120,899
Total real estate   3,506,366  3,461,219  3,510,517  2,020,446  1,965,663
Consumer   56,197  60,735  69,570  30,478  32,671
Commercial and industrial   447,459  491,525  511,421  268,900  287,351
Agricultural   56,852  44,017  37,129  30,612  26,462
Other   66,235  69,068  65,800  28,402  27,095
Loans receivable not covered by loss share   $ 4,133,109  $ 4,126,564  $ 4,194,437  $ 2,378,838  $ 2,339,242
           
           
           
LOANS COVERED BY LOSS SHARE          
           
Real estate           
Commercial real estate loans           
Non-farm/non-residential   $ 107,171  $ 113,593  $ 117,164  $ 134,843  $ 143,922
Construction/land development   44,763  45,381  48,388  51,492  56,447
Agricultural   1,145  1,184  1,232  1,253  1,784
Residential real estate loans           
Residential 1-4 family   91,706  92,918  98,403  102,673  107,612
Multifamily residential   10,002  10,043  10,378  10,525  10,644
Total real estate   254,787  263,119  275,565  300,786  320,409
Consumer   20  16  20  17  20
Commercial and industrial   7,368  6,440  5,852  6,291  8,193
Agricultural   --   --   --   --   -- 
Other   982  1,066  1,079  978  1,180
Loans receivable covered by loss share   $ 263,157  $ 270,641  $ 282,516  $ 308,072  $ 329,802
 
 
 
Home BancShares, Inc. 
Consolidated Net Interest Margin 
(Unaudited) 
             
   Three Months Ended 
   June 30, 2014   March 31, 2014 
   Average   Income/   Yield/   Average   Income/   Yield/ 
(Dollars in thousands)   Balance   Expense   Rate   Balance   Expense   Rate 
             
             
ASSETS            
Earning assets             
Interest-bearing balances due from banks   $ 54,726  $ 29 0.21%  $ 63,018  $ 24 0.15%
Federal funds sold   23,349  12 0.21%  31,482  16 0.21%
Investment securities - taxable   1,038,011  4,762 1.84%  1,005,313  4,470 1.80%
Investment securities - non-taxable - FTE   287,679  3,889 5.42%  286,328  3,789 5.37%
Loans receivable - FTE   4,403,767  75,518 6.88%  4,427,994  75,132 6.88%
Total interest-earning assets   5,807,532  84,210 5.82%  5,814,135  83,431 5.82%
Non-earning assets   914,388      952,470    
Total assets   $ 6,721,920      $ 6,766,605    
             
LIABILITIES AND SHAREHOLDERS' EQUITY            
Liabilities             
Interest-bearing liabilities             
Savings and interest-bearing transaction accounts   $ 2,808,856  $ 1,227 0.18%  $ 2,785,216  $ 1,279 0.19%
Time deposits   1,380,249  1,868 0.54%  1,528,079  2,105 0.56%
Total interest-bearing deposits   4,189,105  3,095 0.30%  4,313,295  3,384 0.32%
Federal funds purchased   110  --  0.00%  508  --  0.00%
Securities sold under agreement to repurchase   136,444  168 0.49%  149,352  182 0.49%
FHLB borrowed funds   376,326  952 1.01%  377,326  946 1.02%
Subordinated debentures   60,826  328 2.16%  60,826  328 2.19%
Total interest-bearing liabilities   4,762,811  4,543 0.38%  4,901,307  4,840 0.40%
Non-interest bearing liabilities             
Non-interest bearing deposits  1,054,233      1,003,495    
Other liabilities   24,832      8,825    
Total liabilities   5,841,876      5,913,627    
Shareholders' equity   880,044      852,978    
Total liabilities and shareholders' equity   $ 6,721,920      $ 6,766,605    
Net interest spread      5.44%     5.42%
Net interest income and margin - FTE     $ 79,667 5.50%    $ 78,591 5.48%
 
 
 
Home BancShares, Inc. 
Consolidated Net Interest Margin 
(Unaudited) 
             
   Six Months Ended 
   June 30, 2014   June 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   $ 58,849  $ 53 0.18%  $ 143,153  $ 184 0.26%
Federal funds sold   27,393  28 0.21%  12,931  13 0.20%
Investment securities - taxable   1,021,752  9,232 1.82%  567,059  4,893 1.74%
Investment securities - non-taxable - FTE   287,007  7,678 5.39%  168,945  4,813 5.74%
Loans receivable - FTE   4,415,814  150,650 6.88%  2,673,952  88,456 6.67%
Total interest-earning assets   5,810,815  167,641 5.82%  3,566,040  98,359 5.56%
Non-earning assets   933,324      603,930    
Total assets   $ 6,744,139      $ 4,169,970    
             
LIABILITIES AND SHAREHOLDERS' EQUITY            
Liabilities             
Interest-bearing liabilities             
Savings and interest-bearing transaction accounts   $ 2,797,102  $ 2,506 0.18%  $ 1,775,486  $ 1,554 0.18%
Time deposits   1,453,755  3,973 0.55%  943,561  3,060 0.65%
Total interest-bearing deposits   4,250,857  6,479 0.31%  2,719,047  4,614 0.34%
Federal funds purchased   308  --  0.00%  --   --  0.00%
Securities sold under agreement to repurchase   142,862  350 0.49%  71,140  166 0.47%
FHLB borrowed funds   376,823  1,898 1.02%  130,328  2,016 3.12%
Subordinated debentures   60,826  656 2.17%  15,054  247 3.31%
Total interest-bearing liabilities   4,831,676  9,383 0.39%  2,935,569  7,043 0.48%
Non-interest bearing liabilities             
Non-interest bearing deposits  1,029,004      686,636    
Other liabilities   16,873      20,757    
Total liabilities   5,877,553      3,642,962    
Shareholders' equity   866,586      527,008    
Total liabilities and shareholders' equity   $ 6,744,139      $ 4,169,970    
Net interest spread      5.43%     5.08%
Net interest income and margin - FTE     $ 158,258 5.49%    $ 91,316 5.16%
Brian S. Davis
Chief Accounting Officer &
Investor Relations Officer
Home BancShares, Inc.
(501) 328-4770