United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 18, 2013
Home BancShares, Inc.
(Exact name of registrant as specified in its charter)
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Arkansas |
000-51904 |
71-0682831 |
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(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
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719 Harkrider, Suite 100, Conway, Arkansas |
72032 |
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| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (501) 328-4770
Not Applicable
(Former name or former address, if changed since last report)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | ||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Item 2.02. Results of Operations and Financial Condition.
The Registrant hereby furnishes its April 18, 2013 press release announcing first quarter 2013 earnings, which is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 7.01. Regulation FD Disclosure.
See Item 2.02. Results of Operations and Financial Condition.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release: Home BancShares, Inc. Announces Record Quarterly Net Income of $17.5 Million.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Home BancShares, Inc.
(Registrant) |
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April 18, 2013
(Date) |
/s/ BRIAN DAVIS
Brian Davis Chief Accounting Officer |
EXHIBIT 99.1
CONWAY, Ark., April 17, 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