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) 328-4770

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