Home BancShares, Inc. Announces a 22.0% Increase in Third Quarter Earnings

CONWAY, Ark., Oct. 20, 2016 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ:HOMB), parent company of Centennial Bank, today announced a record quarterly profit of $43.6 million, or $0.31 diluted earnings per share for the third quarter of 2016 compared to $35.7 million or $0.26 diluted earnings per share (split adjusted) for the same quarter in 2015.  Excluding the $3.8 million of FDIC loss share buy-out expense, diluted earnings per share for the third quarter of 2016 was $0.33 per share.  The Company increased its third quarter earnings by $7.9 million or 22.0% for the three months ended September 30, 2016 compared to the same period of the previous year.  The Company also announced $90.1 million in quarterly organic loan growth during the third quarter of 2016, a core efficiency ratio of 36.51% and a quarterly return on assets excluding FDIC loss share buy-out of 1.90%. 

“We are pleased with the earnings performance this quarter, excluding expenses incurred to buy-out the FDIC loss share portfolio,” said John Allison, Chairman.  “For the quarter, the Company reported outstanding results for diluted earnings per share excluding the FDIC loss share buy-out of $0.33 per share.  We continue to see growth in loans and earnings and are committed to finding more efficient ways to provide exceptional service to our customers.”

“The third quarter of 2016 marked the twenty-second consecutive quarter we have successively reported the most profitable quarter in the Company's history,” said Randy Sims, Home BancShares, Inc. Chief Executive Officer. “During the third quarter of 2016, we again improved our core efficiency ratio, reaching 36.51%.  Our Company continues to search for opportunities to not only maximize our efficiencies but also increase earnings for the benefit of the shareholders.”

“Our financial results and organic loan growth for the quarter just ended are giving us momentum to continue to seek additional growth opportunities in attractive markets,” added Tracy French, Centennial Bank President and Chief Executive Officer.  “We will remain diligent in our commitment to both generate and retain a substantial amount of capital each quarter so we are consistently in a position to support organic growth that will also produce additional earnings and increase shareholder value.” 

Operating Highlights

Each quarter we perform credit impairment tests on the loans acquired in our acquisitions.  During our third quarter 2016 impairment testing, several pools were determined to have a material projected credit improvement. This projected credit improvement offset by the expected decline in accretion income from the maturing of acquired loan portfolios, resulted in a net improvement of recognized accretion income when compared to the second quarter of 2016.  Consequently, yields on loans and net interest margin for the quarter just ended are slightly increased when compared to the second quarter of 2016.

Net interest margin, on a fully taxable equivalent basis, was 4.86% for the quarter just ended compared to 5.03% for the same quarter in 2015 and compared to 4.83% for the second quarter of 2016.  Accretion yield on purchased loans increased approximately $920,000 from $11.0 million for the second quarter of 2016 to $11.9 million for third quarter of 2016.  The net interest margin, excluding accretion yield on purchased loans increased slightly from the second quarter of 2016 to the third quarter of 2016 at 4.24% and 4.25%, respectively.

During the third quarter of 2016, the Company recorded a provision for loan loss of $5.5 million compared to $7.1 million in the third quarter of 2015.  The $5.5 million of provision for loan loss is a reflection of the organic loan growth and net charge-offs for the third quarter of 2016.

The Company reported $22.0 million of non-interest income for the third quarter of 2016, compared to $16.5 million for the third quarter of 2015.  The most important components of the third quarter non-interest income were $7.5 million from other service charges and fees, $6.5 million from service charges on deposits accounts, $3.9 million from mortgage lending income and $1.6 million from other income.

Non-interest expense for the third quarter of 2016 was $51.0 million compared to $44.6 million for the third quarter of 2015.  This increase is primarily associated with the establishment of the Centennial Commercial Finance Group (“Centennial CFG”) in New York City during the second quarter of 2015, the acquisition of FBBI during the fourth quarter of 2015 and $3.8 million FDIC loss-share buy-out expense recognized during the third quarter of 2016.  For the third quarter of 2016, our core efficiency ratio was 36.51% which is improved from the 39.30% reported for third quarter of 2015.

Financial Condition

Total loans receivable were $7.11 billion at September 30, 2016 compared to $6.64 billion at December 31, 2015.  Total deposits were $6.84 billion at September 30, 2016 compared to $6.44 billion at December 31, 2015.  Total assets were $9.76 billion at September 30, 2016 compared to $9.29 billion at December 31, 2015.

From December 31, 2015 to September 30, 2016, the Company produced approximately $470.7 million of organic loan growth, of which $222.7 million is associated with loan originations in the legacy footprint with the remaining $248.0 million being associated with Centennial CFG.  Centennial CFG had loans of $963.8 million at September 30, 2016.

From June 30, 2016 to September 30, 2016, the Company produced approximately $90.1 million of organic loan growth, of which $17.6 million is associated with loan originations in the legacy footprint with the remaining $72.5 million being associated with Centennial CFG.

Non-performing loans at September 30, 2016 are $25.1 million, $33.9 million, $1.1 million and zero in the Arkansas, Florida, Alabama and Centennial CFG markets, respectively, for a total of $60.1 million.  Non-performing loans as a percent of total loans were 0.84% as of September 30, 2016 compared to 0.96% as of December 31, 2015.  Non-performing assets at September 30, 2016 are $38.1 million, $37.3 million, $1.7 million and zero in the Arkansas, Florida and Alabama and Centennial CFG markets, respectively, for a total of $77.1 million.  Non-performing assets as a percent of total assets were 0.79% as of September 30, 2016 compared to 0.89% as of December 31, 2015.

The Company’s allowance for loan losses was $76.4 million at September 30, 2016, or 1.07% of total loans, compared to $69.2 million, or 1.04% of total loans, at December 31, 2015.  As of September 30, 2016 and December 31, 2015, the allowance for loan losses plus discount for credit losses on loans acquired to total loans plus discount for credit losses on loans acquired was 2.55% and 3.22%, respectively.  This decrease is primarily the result of organic loan growth in 2016 plus projected credit improvement from previous periods on the acquired impaired loans and write-downs on purchased credit impaired loans.  As of September 30, 2016 and December 31, 2015, the Company’s allowance for loan losses was 127% and 109% of its total non-performing loans, respectively.

Stockholders’ equity was $1.30 billion at September 30, 2016 compared to $1.20 billion at December 31, 2015, an increase of $96.3 million.  Book value per common share was $9.22 at September 30, 2016 compared to $8.55 (split adjusted) at December 31, 2015.  Tangible book value per common share was $6.40 at September 30, 2016 compared to $5.71 (split adjusted) at December 31, 2015 for an annualized increase of 16.1%. 

Branches

In an effort to achieve efficiencies primarily from our acquisitions, during the third quarter the Company added deposit operations to its loan production office in New York City and opened one branch location in Davie, Florida.  During the fourth quarter of 2016, the Company has plans to close one Arkansas location.  The Company currently has 77 branches in Arkansas, 59 branches in Florida, 6 branches in Alabama and one branch in New York City.

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, October 20, 2016.  We encourage all participants to pre-register for the conference call using the following link: http://dpregister.com/10092972.  Callers who pre-register will be given dial-in instructions and a unique PIN to gain immediate access to the live call.  Participants may pre-register now, or at any time prior to the call, and will immediately receive simple instructions via email.  The Home BancShares conference call will also be automatically scheduled as an event in your Outlook calendar.

Those without internet access or unable to pre-register may dial in and listen to the live 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: 10092972, which will be available until October 27, 2016 at 10:59 p.m. CT (11:59 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, 2015 filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2016.

Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its 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 branch locations in Arkansas, Florida, South Alabama and New York City. 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)		2016			2016			2016			2015			2015
ASSETS
Cash and due from banks	$	123,126		$	136,632		$	115,206		$	111,258		$	120,262
Interest-bearing deposits with other banks		173,034			48,762			42,866			144,565			108,394
Cash and cash equivalents		296,160			185,394			158,072			255,823			228,656
Federal funds sold		1,850			525			7,050			1,550			-
Investment securities - available-for-sale		1,233,269			1,221,778			1,207,773			1,206,580			1,141,405
Investment securities - held-to-maturity		275,544			287,725			299,050			309,042			324,949
Loans receivable		7,112,291			7,022,156			6,852,212			6,641,571			6,005,589
Allowance for loan losses		(76,370	)		(74,341	)		(72,306	)		(69,224	)		(63,659	)
Loans receivable, net		7,035,921			6,947,815			6,779,906			6,572,347			5,941,930
Bank premises and equipment, net		208,137			207,932			210,764			212,163			205,505
Foreclosed assets held for sale		17,053			17,778			20,202			19,140			20,816
Cash value of life insurance		86,230			85,889			85,538			85,146			75,281
Accrued interest receivable		29,398			28,548			28,833			29,132			26,977
Deferred tax asset, net		56,435			61,613			69,564			71,565			63,075
Goodwill		377,983			377,983			377,983			377,983			322,728
Core deposit and other intangibles		19,073			19,835			20,597			21,443			18,828
Other assets		127,185			139,311			132,119			127,208			145,403
Total assets	$	9,764,238		$	9,582,126		$	9,397,451		$	9,289,122		$	8,515,553
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand and non-interest-bearing	$	1,717,467		$	1,645,472		$	1,562,565		$	1,456,624		$	1,409,949
Savings and interest-bearing transaction accounts		3,792,229			3,678,546			3,602,868			3,551,684			3,230,722
Time deposits		1,330,597			1,388,930			1,412,086			1,430,201			1,312,343
Total deposits		6,840,293			6,712,948			6,577,519			6,438,509			5,953,014
Federal funds purchased		-			-			-			-			-
Securities sold under agreements to repurchase		109,350			111,072			121,906			128,389			134,142
FHLB and other borrowed funds		1,420,369			1,380,889			1,336,233			1,405,945			1,216,152
Accrued interest payable and other liabilities		37,382			51,476			73,185			55,696			60,141
Subordinated debentures		60,826			60,826			60,826			60,826			60,826
Total liabilities		8,468,220			8,317,211			8,169,669			8,089,365			7,424,275
Stockholders' equity
Common stock		1,405			1,404			702			701			680
Capital surplus		866,310			863,560			862,827			867,981			782,500
Retained earnings		419,999			389,014			357,788			326,898			299,984
Accumulated other comprehensive income		8,304			10,937			6,465			4,177			8,114
Total stockholders' equity		1,296,018			1,264,915			1,227,782			1,199,757			1,091,278
Total liabilities and stockholders' equity	$	9,764,238		$	9,582,126		$	9,397,451		$	9,289,122		$	8,515,553

 

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)		2016			2016			2015			2015			2015				2016			2015
Interest income
Loans	$	102,953		$	100,415		$	96,913		$	97,772		$	88,671			$	300,281		$	246,518
Investment securities
Taxable		5,583			5,145			5,450			5,865			5,157				16,178			15,830
Tax-exempt		2,720			2,823			2,815			2,879			2,789				8,358			8,315
Deposits - other banks		117			106			102			66			32				325			167
Federal funds sold		2			1			4			9			4				7			15
Total interest income		111,375			108,490			105,284			106,591			96,653				325,149			270,845
Interest expense
Interest on deposits		4,040			3,854			3,634			3,357			3,045				11,528			9,614
Federal funds purchased		-			1			1			1			1				2			3
FHLB borrowed funds		3,139			3,074			3,070			2,641			2,030				9,283			4,133
Securities sold under agreements to repurchase		142			134			145			140			146				421			481
Subordinated debentures		401			386			377			351			340				1,164			1,003
Total interest expense		7,722			7,449			7,227			6,490			5,562				22,398			15,234
Net interest income		103,653			101,041			98,057			100,101			91,091				302,751			255,611
Provision for loan losses		5,536			5,692			5,677			8,890			7,106				16,905			16,274
Net interest income after
provision for loan losses		98,117			95,349			92,380			91,211			83,985				285,846			239,337
Non-interest income
Service charges on deposit accounts		6,527			6,151			5,929			6,528			6,250				18,607			17,724
Other service charges and fees		7,504			7,968			7,117			6,827			6,644				22,589			19,359
Trust fees		365			359			404			365			398				1,128			2,016
Mortgage lending income		3,932			3,481			2,863			2,404			3,132				10,276			8,019
Insurance commissions		534			617			657			513			548				1,808			1,755
Increase in cash value of life insurance		344			353			395			328			268				1,092			871
Dividends from FHLB, FRB, Bankers' bank & other		808			719			620			431			433				2,147			1,267
Gain on acquisitions		-			-			-			-			-				-			1,635
Gain on sale of SBA loans		364			79			-			390			151				443			151
Gain (loss) on sale of branches, equipment and other assets, net		(86	)		840			(53	)		23			(266	)			701			(237	)
Gain (loss) on OREO, net		132			(941	)		96			(507	)		(40	)			(713	)		190
Gain (loss) on securities, net		-			15			10			-			-				25			4
FDIC indemnification accretion/(amortization), net		-			(410	)		(362	)		(1,239	)		(1,994	)			(772	)		(8,152	)
Other income		1,590			2,541			1,761			1,193			1,021				5,892			3,640
Total non-interest income		22,014			21,772			19,437			17,256			16,545				63,223			48,242
Non-interest expense
Salaries and employee benefits		25,623			25,437			23,958			23,841			22,225				75,018			63,671
Occupancy and equipment		6,668			6,509			6,671			6,700			6,540				19,848			19,267
Data processing expense		2,791			2,766			2,664			2,673			2,619				8,221			8,101
Other operating expenses		15,944			12,875			12,355			15,785			13,209				41,174			37,517
Total non-interest expense		51,026			47,587			45,648			48,999			44,593				144,261			128,556
Income before income taxes		69,105			69,534			66,169			59,468			55,937				204,808			159,023
Income tax expense		25,485			26,025			24,742			22,035			20,196				76,252			58,257
Net income	$	43,620		$	43,509		$	41,427		$	37,433		$	35,741			$	128,556		$	100,766

 

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)		2016			2016			2015			2015			2015				2016			2015
PER SHARE DATA
Diluted earnings per common share	$	0.31		$	0.31		$	0.29		$	0.27		$	0.26			$	0.91		$	0.74
Diluted earnings per common share excluding merger expenses & FDIC loss share buy-out expense		0.33			0.31			0.29			0.28			0.26				0.93			0.75
Diluted earnings per common share excluding intangible amortization		0.31			0.31			0.30			0.27			0.27				0.92			0.76
Basic earnings per common share		0.31			0.31			0.30			0.27			0.26				0.92			0.74
Dividends per share - common		0.0900			0.0875			0.0750			0.0750			0.0750				0.2525			0.2000
Book value per common share		9.22			9.01			8.75			8.55			8.02				9.22			8.02
Tangible book value per common share		6.40			6.18			5.91			5.71			5.51				6.40			5.51
STOCK INFORMATION
Average common shares outstanding		140,436			140,382			140,390			140,234			135,738				140,403			135,396
Average diluted shares outstanding		140,703			140,608			140,687			140,617			136,162				140,685			135,999
End of period common shares outstanding		140,490			140,382			140,380			140,241			136,001				140,490			136,001
ANNUALIZED PERFORMANCE METRICS
Return on average assets		1.81	%		1.83	%		1.79	%		1.62	%		1.72	%			1.81	%		1.71	%
Return on average assets excluding intangible amortization		1.91	%		1.93	%		1.89	%		1.72	%		1.83	%			1.91	%		1.82	%
Return on average assets excluding intangible amortization, provision for loan losses, merger expenses, gain on acquisitions, loss on FDIC loss share buyout and income taxes (Core ROA)		3.43	%		3.33	%		3.27	%		3.27	%		3.24	%			3.35	%		3.17	%
Return on average common equity		13.62	%		14.11	%		13.77	%		12.53	%		13.23	%			13.83	%		12.86	%
Return on average tangible common equity excluding intangible amortization		20.01	%		21.01	%		20.79	%		19.07	%		19.76	%			20.59	%		19.49	%
Efficiency ratio		39.41	%		37.52	%		37.50	%		40.32	%		39.79	%			38.16	%		40.49	%
Core efficiency ratio		36.51	%		36.84	%		36.92	%		37.86	%		39.30	%			36.75	%		40.11	%
Net interest margin - FTE		4.86	%		4.83	%		4.81	%		4.95	%		5.03	%			4.83	%		4.99	%
Fully taxable equivalent adjustment	$	1,869		$	1,974		$	1,973		$	2,025		$	1,951			$	5,816		$	5,685
Total revenue		133,389			130,262			124,721			123,847			113,198				388,372			319,087
EARNINGS EXCLUDING
INTANGIBLE AMORTIZATION
GAAP net income available to common shareholders	$	43,620		$	43,509		$	41,427		$	37,433		$	35,741			$	128,556		$	100,766
Intangible amortization after-tax		463			463			514			524			600				1,440			1,955
Earnings excluding intangible amortization	$	44,083		$	43,972		$	41,941		$	37,957		$	36,341			$	129,996		$	102,721
GAAP diluted earnings per share	$	0.31		$	0.31		$	0.29		$	0.27		$	0.26			$	0.91		$	0.74
Intangible amortization after-tax		-			-			0.01			-			0.01				0.01			0.02
Diluted earnings per share excluding intangible amortization	$	0.31		$	0.31		$	0.30		$	0.27		$	0.27			$	0.92		$	0.76
OTHER OPERATING EXPENSES
Advertising	$	866		$	733		$	823		$	644		$	906			$	2,422		$	2,342
Merger and acquisition expenses		-			-			-			2,909			474				-			1,891
FDIC loss share buy-out expense		3,849			-			-			-			-				3,849			-
Amortization of intangibles		762			763			845			862			988				2,370			3,217
Electronic banking expense		1,428			1,237			1,456			1,283			1,352				4,121			3,883
Directors' fees		292			289			275			262			233				856			809
Due from bank service charges		319			337			305			304			291				961			792
FDIC and state assessment		1,502			1,446			1,446			1,443			1,276				4,394			3,844
Insurance		553			544			533			642			617				1,630			1,900
Legal and accounting		583			658			523			537			338				1,764			1,491
Other professional fees		1,137			1,044			925			1,231			947				3,106			1,995
Operating supplies		437			419			436			473			464				1,292			1,407
Postage		269			260			286			299			293				815			897
Telephone		449			455			487			499			444				1,391			1,418
Other expense		3,498			4,690			4,015			4,397			4,586				12,203			11,631
Total other operating expenses	$	15,944		$	12,875		$	12,355		$	15,785		$	13,209			$	41,174		$	37,517

 

Home BancShares, Inc.
Selected Financial Information
(Unaudited)
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(Dollars in thousands)		2016			2016			2016			2015			2015
BALANCE SHEET RATIOS
Total loans to total deposits		103.98	%		104.61	%		104.18	%		103.15	%		100.88	%
Common equity to assets		13.27	%		13.20	%		13.07	%		12.92	%		12.82	%
Tangible common equity to tangible assets		9.60	%		9.44	%		9.21	%		9.00	%		9.17	%
LOANS RECEIVABLE
Real estate
Commercial real estate loans
Non-farm/non-residential	$	2,954,618		$	2,884,162		$	2,889,927		$	2,968,335		$	2,681,785
Construction/land development		1,065,204			1,068,544			977,800			944,787			812,839
Agricultural		77,556			78,535			75,763			75,027			75,968
Residential real estate loans
Residential 1-4 family		1,264,384			1,262,416			1,202,323			1,190,279			1,121,951
Multifamily residential		328,089			395,352			438,100			430,256			393,683
Total real estate		5,689,851			5,689,009			5,583,913			5,608,684			5,086,226
Consumer		42,487			48,933			50,090			52,258			46,687
Commercial and industrial		1,225,043			1,130,776			1,070,553			850,587			752,528
Agricultural		73,413			69,666			63,482			67,109			78,217
Other		81,497			83,772			84,174			62,933			41,931
Loans receivable	$	7,112,291		$	7,022,156		$	6,852,212		$	6,641,571		$	6,005,589
ALLOWANCE FOR LOAN LOSSES
Balance, beginning of period	$	74,341		$	72,306		$	69,224		$	63,659		$	60,258
Loans charged off		4,351			4,367			3,947			4,474			4,217
Recoveries of loans previously charged off		844			710			1,352			1,149			217
Net loans (recovered)/charged off		3,507			3,657			2,595			3,325			4,000
Provision for loan losses		5,536			5,692			5,677			8,890			7,401
Balance, end of period	$	76,370		$	74,341		$	72,306		$	69,224		$	63,659
		-			-			-			-			-
Discount for credit losses on purchased loans		108,017			120,910			142,223			149,394			148,850
Net (recoveries) charge-offs to average total loans		0.20	%		0.21	%		0.16	%		0.20	%		0.27	%
Allowance for loan losses to total loans		1.07	%		1.06	%		1.06	%		1.04	%		1.06	%
Allowance for loan losses plus discount for credit losses on purchased loans to total loans plus discount for credit losses on purchased loans		2.55	%		2.73	%		3.07	%		3.22	%		3.45	%
NON-PERFORMING ASSETS
Non-performing loans
Non-accrual loans	$	39,353		$	36,660		$	33,409		$	36,374		$	37,405
Loans past due 90 days or more		20,737			22,998			25,144			27,137			16,560
Total non-performing loans		60,090			59,658			58,553			63,511			53,965
Other non-performing assets
Foreclosed assets held for sale, net		17,053			17,778			20,202			19,140			20,816
Other non-performing assets		-			-			-			38			14
Total other non-performing assets		17,053			17,778			20,202			19,178			20,830
Total non-performing assets	$	77,143		$	77,436		$	78,755		$	82,689		$	74,795
Allowance for loan losses for loans to non-performing loans		127.09	%		124.61	%		123.49	%		109.00	%		117.96	%
Non-performing loans to total loans		0.84	%		0.85	%		0.85	%		0.96	%		0.90	%
Non-performing assets to total assets		0.79	%		0.81	%		0.84	%		0.89	%		0.88	%

 

Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
	Three Months Ended
	September 30, 2016										June 30, 2016
	Average			Income/			Yield/				Average			Income/			Yield/
(Dollars in thousands)	Balance			Expense			Rate				Balance			Expense			Rate
ASSETS
Earning assets
Interest-bearing balances due from banks	$	110,993		$	117			0.42	%		$	112,537		$	106			0.38	%
Federal funds sold		1,136			2			0.70	%			1,509			1			0.27	%
Investment securities - taxable		1,177,284			5,583			1.89	%			1,170,091			5,145			1.77	%
Investment securities - non-taxable - FTE		328,979			4,407			5.33	%			332,091			4,611			5.58	%
Loans receivable - FTE		7,027,634			103,135			5.84	%			6,969,727			100,601			5.81	%
Total interest-earning assets		8,646,026			113,244			5.21	%			8,585,955			110,464			5.17	%
Non-earning assets		956,337										976,669
Total assets	$	9,602,363									$	9,562,624
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	3,721,019		$	2,268			0.24	%		$	3,677,650		$	2,141			0.23	%
Time deposits		1,361,589			1,772			0.52	%			1,393,023			1,713			0.49	%
Total interest-bearing deposits		5,082,608			4,040			0.32	%			5,070,673			3,854			0.31	%
Federal funds purchased		-			-			0.00	%			330			1			1.22	%
Securities sold under agreement to repurchase		118,183			142			0.48	%			115,849			134			0.47	%
FHLB borrowed funds		1,357,716			3,139			0.92	%			1,402,465			3,074			0.88	%
Subordinated debentures		60,826			401			2.62	%			60,826			386			2.55	%
Total interest-bearing liabilities		6,619,333			7,722			0.46	%			6,650,143			7,449			0.45	%
Non-interest bearing liabilities
Non-interest bearing deposits		1,663,621										1,611,282
Other liabilities		45,332										61,119
Total liabilities		8,328,286										8,322,544
Shareholders' equity		1,274,077										1,240,080
Total liabilities and shareholders' equity	$	9,602,363									$	9,562,624
Net interest spread								4.75	%									4.72	%
Net interest income and margin - FTE				$	105,522			4.86	%					$	103,015			4.83	%

 

Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
	Nine Months Ended
	September 30, 2016										September 30, 2015
	Average			Income/			Yield/				Average			Income/			Yield/
(Dollars in thousands)	Balance			Expense			Rate				Balance			Expense			Rate
ASSETS
Earning assets
Interest-bearing balances due from banks	$	110,893		$	325			0.39	%		$	104,764		$	167			0.21	%
Federal funds sold		1,895			7			0.49	%			8,276			15			0.24	%
Investment securities - taxable		1,174,998			16,178			1.84	%			1,097,901			15,830			1.93	%
Investment securities - non-taxable - FTE		333,336			13,616			5.46	%			327,040			13,604			5.56	%
Loans receivable - FTE		6,909,240			300,839			5.82	%			5,461,573			246,914			6.04	%
Total interest-earning assets		8,530,362			330,965			5.18	%			6,999,554			276,530			5.28	%
Non-earning assets		968,553										894,092
Total assets	$	9,498,915									$	7,893,646
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	3,664,401		$	6,426			0.23	%		$	3,116,308		$	4,564			0.20	%
Time deposits		1,382,657			5,102			0.49	%			1,358,539			5,050			0.50	%
Total interest-bearing deposits		5,047,058			11,528			0.31	%			4,474,847			9,614			0.29	%
Federal funds purchased		312			2			0.86	%			863			3			0.46	%
Securities sold under agreement to repurchase		120,966			421			0.46	%			163,718			481			0.39	%
FHLB borrowed funds		1,376,145			9,283			0.90	%			788,393			4,133			0.70	%
Subordinated debentures		60,826			1,164			2.56	%			60,826			1,003			2.20	%
Total interest-bearing liabilities		6,605,307			22,398			0.45	%			5,488,647			15,234			0.37	%
Non-interest bearing liabilities
Non-interest bearing deposits		1,596,603										1,315,160
Other liabilities		55,411										41,982
Total liabilities		8,257,321										6,845,789
Shareholders' equity		1,241,594										1,047,857
Total liabilities and shareholders' equity	$	9,498,915									$	7,893,646
Net interest spread								4.73	%									4.91	%
Net interest income and margin - FTE				$	308,567			4.83	%					$	261,296			4.99	%

 

FOR MORE INFORMATION CONTACT:

Jennifer C. Floyd
Chief Accounting Officer &
Investor Relations Officer
Home BancShares, Inc.
(501) 339-2929