Home BancShares, Inc. Announces Record Quarterly Net Income Of $18.4 Million

CONWAY, Ark., Oct. 17, 2013 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced third quarter net income of $18.4 million, or $0.33 diluted earnings per common share, compared to $16.1 million of net income, or $0.28 diluted earnings per common share (split adjusted) for the same quarter in 2012. The Company increased its third quarter earnings by $2.3 million or 14.1% for the three months ended September 30, 2013 compared to the same period of the previous year.

Because acquisitions are growth and capital management strategies, earnings excluding amortization of intangibles after-tax are useful in evaluating the Company. Diluted earnings per common share excluding intangible amortization for the third quarter of 2013 was $0.33 compared to $0.29 diluted earnings per common share excluding intangible amortization (split adjusted) for the same period in 2012.

"Home BancShares has achieved yet another record quarter for net income, making it the tenth consecutive quarter to meet this outstanding accomplishment," said John Allison, Chairman. "Our strong capital levels continue to remain considerably above the regulators' capital requirements, while our strong reserves have placed us in a position to partake in an opportunity like the upcoming Liberty Bank market acquisition. This game-changing merger of these two similarly sized Arkansas-based companies with comparable cultures and history makes us confidently optimistic of the Company's continued bright future when Liberty gets on board."

Randy Sims, Chief Executive Officer, added, "The $704,000 or 4.0% increase from our previously reported record earnings is truly another outstanding achievement. The Company also reported exceptional results for return on average assets of 1.80%, net interest margin of 5.41% and efficiency ratio of 45.67%."

Operating Highlights

Net interest income for the third quarter of 2013 increased 20.0% to $46.4 million from $38.6 million during the third quarter of 2012.  For the third quarter of 2013, the effective yield on non-covered loans and covered loans was 5.88% and 12.76%, respectively.  Net interest margin, on a fully taxable equivalent basis, was 5.41% for the quarter just ended compared to 4.65% in the third quarter of 2012, an increase of 76 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 $9.3 million of non-interest income for the third quarter of 2013, compared to $10.6 million for the third quarter of 2012. The most important components of the third quarter non-interest income were $4.1 million from service charges on deposits accounts, $3.7 million from other service charges and fees, $1.5 million from mortgage lending income, $1.0 million from other income, $777,000 from gain on sale of other real estate owned, $519,000 from insurance commissions, and $303,000 from gain on sale of assets offset by the $3.2 million of net amortization on the FDIC indemnification asset.  

Non-interest expense for the third quarter of 2013 was $26.7 million compared to $24.0 million for the third quarter of 2012. This increase is primarily associated with the acquisition of Heritage Bank of Florida and Premier Bank during the fourth quarter of 2012. Excluding merger expenses non-interest expense improved by $173,000 for the third quarter of 2013 from the second quarter of 2013. For the third quarter of 2013, our core efficiency ratio was 44.8% which was an enhancement of 100 basis points from the second quarter of 2013.

Financial Condition

Total non-covered loans were $2.38 billion at September 30, 2013 compared to $2.33 billion at December 31, 2012.  Total covered loans were $308.1 million at September 30, 2013 compared to $384.9 million at December 31, 2012. Total deposits were $3.25 billion at September 30, 2013 compared to $3.48 billion at December 31, 2012.  Total assets were $4.16 billion at September 30, 2013 compared to $4.24 billion at December 31, 2012.

Non-performing non-covered loans were $28.4 million as of September 30, 2013, of which $21.3 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 1.20% as of September 30, 2013 compared to 1.17% as of December 31, 2012.  Non-performing non-covered assets were $42.8 million as of September 30, 2013, of which $25.5 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 1.15% as of September 30, 2013 compared to 1.30% as of December 31, 2012. 

The Company's allowance for loan losses for non-covered loans was $37.6 million at September 30, 2013, or 1.58% of total non-covered loans, compared to $45.2 million, or 1.94% of total non-covered loans, at December 31, 2012. As of September 30, 2013 and December 31, 2012, the allowance for loan losses for non-covered loans plus discount for credit losses on non-covered loans acquired to total non-covered loans plus discount for credit losses on non-covered loans acquired was 4.68% and 5.26%, respectively. As of September 30, 2013 and December 31, 2012, the Company's allowance for loan losses for non-covered loans was 132% and 166% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $545.1 million at September 30, 2013 compared to $515.5 million at December 31, 2012, an increase of $29.7 million. Book value per common share was $9.69 at September 30, 2013 compared to $9.17 (split adjusted) at December 31, 2012.

Branches

During the third quarter, the Company opened two de novo branch locations one on Highway 30A in Seagrove, Florida and the other in Pensacola, Florida. The Company currently has no plans for additional de novo branch locations. During the fourth quarter of 2013, the Company has plans to close one branch in Panama City, Florida.

Upon completion of the Liberty Bank transaction announced at the end of the second quarter, Centennial Bank will have 46 additional branch locations across Northeast Arkansas, Northwest Arkansas and Western Arkansas. The acquisition is expected to close the day following the Home BancShares and Liberty Bancshares shareholder meetings to be held on October 23, 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, October 17, 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: 10033818, which will be available until October 25, 2013 at 8:00 a.m. CT (9:00 ET). Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com under "Investor Relations" for 12 months.

General

This release contains forward-looking statements regarding the Company's plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand, the ability to successfully integrate new acquisitions and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Home BancShares, Inc.'s financial results is included in its Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission.

Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Our wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has locations in Central Arkansas, North Central Arkansas, Southern Arkansas, the Florida Keys, Southwestern Florida, Central Florida, the Florida Panhandle and South Alabama. Upon completion of the Liberty Bank transaction, Centennial Bank will have additional locations in Northeast Arkansas, Northwest Arkansas and Western Arkansas. The Company's common stock is traded through the NASDAQ Global Select Market under the symbol "HOMB."

 
 
 Home BancShares, Inc. 
 Consolidated End of Period Balance Sheets 
 (Unaudited) 
           
   Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30, 
 (In thousands)   2013   2013   2013   2012   2012 
           
ASSETS          
           
 Cash and due from banks   $ 77,261  $ 75,148  $ 95,604  $ 101,972  $ 86,381
 Interest-bearing deposits with other banks   35,080  97,576  206,753  129,883  69,248
 Cash and cash equivalents   112,341  172,724  302,357  231,855  155,629
 Federal funds sold   10,700  2,475  2,850  17,148  1,775
 Investment securities - available-for-sale   839,560  736,406  724,929  726,223  755,197
 Investment securities - held-to-maturity   9,528  --   --   --   -- 
 Loans receivable not covered by loss share   2,378,838  2,339,242  2,309,146  2,331,199  2,076,248
 Loans receivable covered by FDIC loss share   308,072  329,802  358,669  384,884  407,416
 Allowance for loan losses   (38,748)  (41,450)  (45,935)  (50,632)  (54,440)
 Loans receivable, net   2,648,162  2,627,594  2,621,880  2,665,451  2,429,224
 Bank premises and equipment, net   119,637  119,737  117,534  113,883  105,131
 Foreclosed assets held for sale not covered by loss share   14,158  15,985  18,861  20,393  14,942
 Foreclosed assets held for sale covered by FDIC loss share   24,320  27,073  29,928  31,526  31,799
 FDIC indemnification asset   101,192  116,071  126,275  139,646  153,758
 Cash value of life insurance   59,602  59,401  59,185  59,219  53,366
 Accrued interest receivable   14,275  14,424  14,367  16,305  14,872
 Deferred tax asset, net   46,045  46,655  40,907  46,998  33,680
 Goodwill   85,681  85,681  85,681  85,681  77,090
 Core deposit and other intangibles   9,655  10,457  11,259  12,061  9,792
 Other assets   66,450  56,654  69,494  75,741  51,654
 Total assets   $ 4,161,306  $ 4,091,337  $ 4,225,507  $ 4,242,130  $ 3,887,909
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
Liabilities          
 Deposits:           
 Demand and non-interest-bearing   $ 757,328  $ 733,374  $ 717,830  $ 666,414  $ 596,746
 Savings and interest-bearing transaction accounts   1,683,010  1,735,280  1,810,957  1,784,047  1,527,829
 Time deposits   808,480  856,581  936,649  1,032,991  1,007,894
 Total deposits   3,248,818  3,325,235  3,465,436  3,483,452  3,132,469
 Federal funds purchased   --   --   --   --   -- 
 Securities sold under agreements to repurchase   71,307  73,461  77,194  66,278  61,499
 FHLB borrowed funds   270,232  130,251  130,369  130,388  130,506
 Accrued interest payable and other liabilities   22,714  25,787  21,020  17,672  24,590
 Subordinated debentures   3,093  3,093  3,093  28,867  28,867
 Total liabilities   3,616,164  3,557,827  3,697,112  3,726,657  3,377,931
           
 Stockholders' equity           
 Common stock   563  562  281  281  282
 Capital surplus   417,627  416,795  416,741  416,354  420,595
 Retained earnings   128,316  114,172  100,730  86,837  77,190
 Accumulated other comprehensive income   (1,364)  1,981  10,643  12,001  11,911
 Total stockholders' equity   545,142  533,510  528,395  515,473  509,978
 Total liabilities and stockholders' equity   $ 4,161,306  $ 4,091,337  $ 4,225,507  $ 4,242,130  $ 3,887,909
 
 Home BancShares, Inc. 
 Consolidated Statements of Income 
 (Unaudited) 
               
   Quarter Ended   Nine Months Ended 
   Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,   Sep. 30,   Sep. 30, 
 (In thousands)   2013   2013   2013   2012   2012   2013   2012 
               
               
 Interest income               
 Loans   $ 45,003  $ 44,036  $ 44,159  $ 41,203  $ 39,285  $ 133,198  $ 118,156
 Investment securities               
 Taxable   2,645  2,490  2,403  2,708  2,598  7,538  8,518
 Tax-exempt   1,507  1,467  1,481  1,544  1,541  4,455  4,610
 Deposits - other banks   19  86  98  52  115  203  327
 Federal funds sold   2  6  7  9  3  15  8
               
 Total interest income   49,176  48,085  48,148  45,516  43,542  145,409  131,619
               
 Interest expense               
 Interest on deposits   1,810  2,129  2,485  2,877  3,288  6,424  12,112
 Federal funds purchased   3  --   --   1  --   3  -- 
 FHLB borrowed funds   910  1,012  1,004  1,030  1,040  2,926  3,334
 Securities sold under agreements to repurchase   87  86  80  79  107  253  328
 Subordinated debentures   16  17  230  247  482  263  1,527
               
 Total interest expense   2,826  3,244  3,799  4,234  4,917  9,869  17,301
               
 Net interest income   46,350  44,841  44,349  41,282  38,625  135,540  114,318
 Provision for loan losses   --   850  --   1,250  167  850  1,500
 Net interest income after provision for loan losses   46,350  43,991  44,349  40,032  38,458  134,690  112,818
               
 Non-interest income               
 Service charges on deposit accounts   4,072  4,088  3,709  4,062  3,834  11,869  11,007
 Other service charges and fees   3,671  3,479  3,437  3,062  3,119  10,587  9,366
 Mortgage lending income   1,527  1,619  1,372  1,461  1,550  4,518  3,731
 Insurance commissions   519  444  679  368  512  1,642  1,501
 Income from title services   156  136  109  133  112  401  329
 Increase in cash value of life insurance   203  218  180  202  200  601  671
 Dividends from FHLB, FRB, bankers' bank & other   179  401  175  635  182  755  532
 Gain on acquisitions   --   --   --   5,205  --   --   -- 
 Gain on sale of SBA loans   79  --   56  --   206  135  404
 Gain (loss) on sale of premises & equip, net   303  394  15  (30)  (5)  712  354
 Gain (loss) on OREO, net   777  441  86  121  (222)  1,304  (170)
 Gain (loss) on securities, net   --   111  --   (1)  --   111  10
 FDIC indemnification accretion/amortization, net   (3,177)  (2,283)  (1,992)  229  373  (7,452)  1,492
 Other income   1,009  757  1,199  740  765  2,965  2,555
               
 Total non-interest income   9,318  9,805  9,025  16,187  10,626  28,148  31,782
               
 Non-interest expense               
 Salaries and employee benefits   12,981  12,957  12,952  12,348  11,652  38,890  34,941
 Occupancy and equipment   4,010  3,894  3,594  3,712  3,805  11,498  10,788
 Data processing expense   1,114  1,231  1,510  1,331  1,137  3,855  3,599
 Other operating expenses   8,610  7,773  7,807  12,186  7,387  24,190  23,463
               
 Total non-interest expense   26,715  25,855  25,863  29,577  23,981  78,433  72,791
               
 Income before income taxes   28,953  27,941  27,511  26,642  25,103  84,405  71,809
 Income tax expense   10,590  10,282  9,963  9,703  9,008  30,835  25,726
 Net income available to all shareholders   $ 18,363  $ 17,659  $ 17,548  $ 16,939  $ 16,095  $ 53,570  $ 46,083
 
 Home BancShares, Inc. 
 Selected Financial Information 
 (Unaudited)               
               
   Quarter Ended  Nine Months Ended
 (Dollars and shares in thousands,   Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,   Sep. 30,   Sep. 30, 
 except per share data)   2013   2013   2013   2012   2012   2013   2012 
               
               
PER SHARE DATA              
               
 Diluted earnings per common share   $ 0.33  $ 0.31  $ 0.31  $ 0.30  $ 0.28  $ 0.95  $ 0.81
 Diluted earnings per common share excluding      intangible amortization   0.33  0.32  0.32  0.31  0.29  0.97  0.83
 Basic earnings per common share   0.33  0.32  0.31  0.30  0.29  0.96  0.82
 Dividends per share - common   0.075  0.075  0.065  0.130  0.060  0.215  0.160
 Book value per common share   9.69  9.49  9.40  9.17  9.05  9.69  9.05
 Tangible book value per common share   7.99  7.78  7.67  7.43  7.51  7.99  7.51
               
STOCK INFORMATION              
               
 Average common shares outstanding   56,256  56,234  56,222  56,145  56,299  56,238  56,316
 Average diluted shares outstanding   56,620  56,577  56,535  56,486  56,680  56,577  56,688
 End of period common shares outstanding   56,278  56,243  56,229  56,213  56,363  56,278  56,363
               
ANNUALIZED PERFORMANCE METRICS              
               
 Return on average assets  1.80% 1.71% 1.70% 1.67% 1.61% 1.73% 1.56%
 Return on average assets excluding      intangible amortization  1.89% 1.80% 1.79% 1.75% 1.69% 1.82% 1.63%
 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)  3.09% 2.93% 2.77% 2.88% 2.69% 2.93% 2.67%
 Return on average common equity  13.63% 13.27% 13.68% 13.19% 12.78% 13.53% 12.60%
 Return on average tangible common equity      excluding intangible amortization  17.04% 16.65% 17.29% 16.46% 15.88% 16.99% 15.66%
 Efficiency ratio  45.67% 44.98% 46.03% 49.21% 46.24% 45.56% 47.35%
 Core efficiency ratio  44.76% 45.76% 46.39% 44.40% 45.63% 45.63% 46.21%
 Net interest margin - FTE  5.41% 5.18% 5.15% 4.86% 4.65% 5.25% 4.65%
 Fully taxable equivalent adjustment   $ 1,073  $ 1,051  $ 1,075  $ 1,122  $ 1,112  $ 3,199  $ 3,353
 Total revenue   58,494  57,890  57,173  61,703  54,168  173,557  163,401
               
EARNINGS EXCLUDING              
INTANGIBLE AMORTIZATION              
               
 GAAP net income available to      common shareholders   $ 18,363  $ 17,659  $ 17,548  $ 16,939  $ 16,095  $ 53,570  $ 46,083
 Intangible amortization after-tax   487  488  487  452  421  1,462  1,226
 Earnings excluding intangible amortization   $ 18,850  $ 18,147  $ 18,035  $ 17,391  $ 16,516  $ 55,032  $ 47,309
               
 GAAP diluted earnings per share   $ 0.33  $ 0.31  $ 0.31  $ 0.30  $ 0.28  $ 0.95  $ 0.81
 Intangible amortization after-tax   --   0.01  0.01  0.01  0.01  0.02  0.02
 Diluted earnings per share excluding      intangible amortization   $ 0.33  $ 0.32  $ 0.32  $ 0.31  $ 0.29  $ 0.97  $ 0.83
               
OTHER OPERATING EXPENSES              
               
 Advertising   $ 363  $ 120  $ 693  $ 549  $ 534  $ 1,176  $ 1,898
 Merger and acquisition expenses   1,034  1  28  5,169  296  1,063  1,988
 Amortization of intangibles   802  802  802  743  694  2,406  2,018
 Electronic banking expense   926  960  863  845  809  2,749  2,330
 Directors' fees   188  210  190  196  206  588  611
 Due from bank service charges   136  168  133  124  137  437  412
 FDIC and state assessment   684  677  630  571  588  1,991  1,742
 Insurance   572  555  566  501  448  1,693  1,273
 Legal and accounting   227  394  322  225  231  943  840
 Other professional fees   404  490  473  392  411  1,367  1,263
 Operating supplies   309  332  343  299  280  984  835
 Postage   212  231  207  216  219  650  680
 Telephone   291  291  303  282  270  885  792
 Other expense   2,462  2,542  2,254  2,074  2,264  7,258  6,781
               
 Total other operating expenses   $ 8,610  $ 7,773  $ 7,807  $ 12,186  $ 7,387  $ 24,190  $ 23,463
 
 Home BancShares, Inc. 
 Selected Financial Information 
 (Unaudited) 
           
   Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30, 
 (Dollars in thousands)   2013   2013   2013   2012   2012 
           
BALANCE SHEET RATIOS          
           
 Total loans to total deposits  82.70% 80.27% 76.98% 77.97% 79.29%
 Common equity to assets  13.1% 13.0% 12.5% 12.2% 13.1%
 Tangible common equity to tangible assets  11.1% 10.9% 10.5% 10.1% 11.1%
           
ALLOWANCE FOR LOAN LOSSES          
           
 Non-Covered           
 Balance, beginning of period   $ 40,498  $ 42,302  $ 45,170  $ 47,292  $ 49,846
 Loans charged off   5,101  3,361  3,318  3,739  3,984
 Recoveries of loans previously charged off   2,245  807  450  367  1,430
 Net loans charged off   2,856  2,554  2,868  3,372  2,554
 Provision for loan losses   --   750  --   1,250  -- 
 Balance, end of period   $ 37,642  $ 40,498  $ 42,302  $ 45,170  $ 47,292
           
 Discount for credit losses on non-covered loans acquired   77,413  80,322  80,305  81,717  14,712
 Net charge-offs on loans not covered by loss share      to average non-covered loans  0.48% 0.44% 0.50% 0.61% 0.50%
 Allowance for loan losses for non-covered loans      to total non-covered loans  1.58% 1.73% 1.83% 1.94% 2.28%
 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  4.68% 4.99% 5.13% 5.26% 2.97%
           
Covered          
 Balance, beginning of period   $ 952  $ 3,633  $ 5,462  $ 7,148  $ 6,665
 Loans charged off   --   3,187  1,840  1,688  354
 Recoveries of loans previously charged off   154  6  11  2  -- 
 Net loans charged off   (154)  3,181  1,829  1,686  354
 Provision for loan losses before benefit attributable      to FDIC loss share agreements   --   500  --   --   837
 Benefit attributable to FDIC loss share agreements   --   (400)  --   --   (670)
 Net provision for loan losses   --   100  --   --   167
 Increase in FDIC indemnificaton asset   --   400  --   --   670
 Balance, end of period   $ 1,106  $ 952  $ 3,633  $ 5,462  $ 7,148
           
 Total Allowance for Loan Losses   $ 38,748  $ 41,450  $ 45,935  $ 50,632  $ 54,440
           
NON-PERFORMING ASSETS          
NOT COVERED BY LOSS SHARE          
           
 Non-performing non-covered loans           
 Non-accrual non-covered loans   $ 17,187  $ 17,798  $ 19,078  $ 21,336  $ 20,183
 Non-covered loans past due 90 days or more   11,248  11,514  6,692  5,937  2,424
 Total non-performing non-covered loans   28,435  29,312  25,770  27,273  22,607
 Other non-performing non-covered assets           
 Non-covered foreclosed assets held for sale, net   14,158  15,985  18,861  20,393  14,942
 Other non-performing non-covered assets   185  172  285  164  1
 Total other non-performing non-covered assets   14,343  16,157  19,146  20,557  14,943
 Total non-performing non-covered assets   $ 42,778  $ 45,469  $ 44,916  $ 47,830  $ 37,550
           
 Allowance for loan losses for non-covered loans to      non-performing non-covered loans  132.38% 138.16% 164.15% 165.62% 209.19%
 Non-performing non-covered loans to total      non-covered loans  1.20% 1.25% 1.12% 1.17% 1.09%
 Non-performing non-covered assets to total      non-covered assets  1.15% 1.26% 1.21% 1.30% 1.14%
 
 Home BancShares, Inc. 
 Loan Information 
 (Unaudited) 
           
   Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30, 
 (Dollars in thousands)   2013   2013   2013   2012   2012 
           
           
LOANS NOT COVERED BY LOSS SHARE          
           
 Real estate           
 Commercial real estate loans           
 Non-farm/non-residential   $ 1,026,937  $ 1,003,391  $ 1,014,301  $ 1,019,039  $ 887,895
 Construction/land development   314,232  281,994  254,673  254,800  282,269
 Agricultural   31,906  31,119  34,288  32,513  28,403
 Residential real estate loans           
 Residential 1-4 family   529,732  528,260  531,698  549,269  473,412
 Multifamily residential   117,639  120,899  122,998  129,742  105,369
 Total real estate   2,020,446  1,965,663  1,957,958  1,985,363  1,777,348
 Consumer   30,478  32,671  33,823  37,462  35,433
 Commercial and industrial   268,900  287,351  269,463  256,908  200,160
 Agricultural   30,612  26,462  16,573  19,825  36,239
 Other   28,402  27,095  31,329  31,641  27,068
 Loans receivable not covered by loss share   $ 2,378,838  $ 2,339,242  $ 2,309,146  $ 2,331,199  $ 2,076,248
           
           
           
LOANS COVERED BY LOSS SHARE          
           
 Real estate           
 Commercial real estate loans           
 Non-farm/non-residential   $ 134,843  $ 143,922  $ 155,345  $ 164,723  $ 175,195
 Construction/land development   51,492  56,447  58,384  66,713  71,958
 Agricultural   1,253  1,784  2,256  2,282  2,289
 Residential real estate loans           
 Residential 1-4 family   102,673  107,612  120,246  125,625  130,425
 Multifamily residential   10,525  10,644  9,443  9,567  10,062
 Total real estate   300,786  320,409  345,674  368,910  389,929
 Consumer   17  20  28  39  70
 Commercial and industrial   6,291  8,193  11,712  14,668  16,878
 Agricultural   --   --   --   --   -- 
 Other   978  1,180  1,255  1,267  539
 Loans receivable covered by loss share   $ 308,072  $ 329,802  $ 358,669  $ 384,884  $ 407,416
 
 Home BancShares, Inc. 
 Consolidated Net Interest Margin 
 (Unaudited) 
             
   Three Months Ended 
   September 30, 2013   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   $ 40,756  $ 19 0.18%  $ 135,431  $ 86 0.25%
 Federal funds sold   4,411  2 0.18%  10,169  6 0.24%
 Investment securities - taxable   579,867  2,645 1.81%  572,997  2,490 1.74%
 Investment securities - non-taxable - FTE   183,341  2,462 5.33%  172,439  2,394 5.57%
 Loans receivable - FTE   2,668,421  45,121 6.71%  2,663,627  44,160 6.65%
 Total interest-earning assets   3,476,796  50,249 5.73%  3,554,663  49,136 5.54%
 Non-earning assets   569,829      592,822    
 Total assets   $ 4,046,625      $ 4,147,485    
             
LIABILITIES AND SHAREHOLDERS' EQUITY            
 Liabilities             
 Interest-bearing liabilities             
 Savings and interest-bearing transaction accounts   $ 1,691,077  $ 637 0.15%  $ 1,779,269  $ 741 0.17%
 Time deposits   832,149  1,173 0.56%  900,809  1,388 0.62%
 Total interest-bearing deposits   2,523,226  1,810 0.28%  2,680,078  2,129 0.32%
 Federal funds purchased   1,511  3 0.00%  1  --  0.00%
 Securities sold under agreement to repurchase   73,924  87 0.47%  72,599  86 0.48%
 FHLB borrowed funds   144,467  910 2.50%  130,282  1,012 3.12%
 Subordinated debentures   3,093  16 2.05%  3,093  17 2.20%
 Total interest-bearing liabilities   2,746,221  2,826 0.41%  2,886,053  3,244 0.45%
 Non-interest bearing liabilities             
 Non-interest bearing deposits  738,526      704,847    
 Other liabilities   27,315      22,939    
 Total liabilities   3,512,062      3,613,839    
 Shareholders' equity   534,563      533,646    
 Total liabilities and shareholders' equity   $ 4,046,625      $ 4,147,485    
 Net interest spread      5.32%     5.09%
 Net interest income and margin - FTE     $ 47,423 5.41%    $ 45,892 5.18%
 
 Home BancShares, Inc. 
 Consolidated Net Interest Margin 
 (Unaudited) 
             
   Nine Months Ended 
   September 30, 2013   September 30, 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   $ 108,646  $ 203 0.25%  $ 188,874  $ 327 0.23%
 Federal funds sold   10,060  15 0.20%  4,527  8 0.24%
 Investment securities - taxable   571,375  7,538 1.76%  580,492  8,518 1.96%
 Investment securities - non-taxable - FTE   173,796  7,275 5.60%  155,636  7,505 6.44%
 Loans receivable - FTE   2,672,088  133,577 6.68%  2,451,553  118,614 6.46%
 Total interest-earning assets   3,535,965  148,608 5.62%  3,381,082  134,972 5.33%
 Non-earning assets   592,438      577,227    
 Total assets   $ 4,128,403      $ 3,958,309    
             
LIABILITIES AND SHAREHOLDERS' EQUITY            
 Liabilities             
 Interest-bearing liabilities             
 Savings and interest-bearing transaction accounts   $ 1,747,040  $ 2,191 0.17%  $ 1,457,121  $ 2,788 0.26%
 Time deposits   906,015  4,233 0.62%  1,188,074  9,324 1.05%
 Total interest-bearing deposits   2,653,055  6,424 0.32%  2,645,195  12,112 0.61%
 Federal funds purchased   510  3 0.00%  232  --  0.00%
 Securities sold under agreement to repurchase   72,078  253 0.47%  68,425  328 0.64%
 FHLB borrowed funds   135,093  2,926 2.90%  138,288  3,334 3.22%
 Subordinated debentures   11,023  263 3.19%  43,541  1,527 4.68%
 Total interest-bearing liabilities   2,871,759  9,869 0.46%  2,895,681  17,301 0.80%
 Non-interest bearing liabilities             
 Non-interest bearing deposits  704,123      551,628    
 Other liabilities   22,967      22,563    
 Total liabilities   3,598,849      3,469,872    
 Shareholders' equity   529,554      488,437    
 Total liabilities and shareholders' equity   $ 4,128,403      $ 3,958,309    
 Net interest spread      5.16%     4.53%
 Net interest income and margin - FTE     $ 138,739 5.25%    $ 117,671 4.65%
CONTACT: Brian S. Davis         Chief Accounting Officer &         Investor Relations Officer         Home BancShares, Inc.         (501) 328-4770

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