EXHIBIT 99.1
Home BancShares, Inc. Announces Third Quarter Earnings of $27.4 Million and Third Quarter Organic Loan Growth of $208.3 Million
CONWAY, Ark., Oct. 16, 2014 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced a quarterly profit of $27.4 million, or $0.41 diluted earnings per share for the third quarter of 2014 compared to $18.4 million or $0.33 diluted earnings per share for the same quarter in 2013. The Company increased its third quarter earnings by $9.0 million or 49.1% for the three months ended September 30, 2014 compared to the same period of the previous year. Excluding the $3.8 million of merger expenses associated with the recently completed acquisition of Florida Traditions Bank (Traditions), diluted earnings per share for the third quarter of 2014 was $0.45 per share.
On July 17, 2014, the Company completed its acquisition of Traditions. As of acquisition date, Traditions had $297.6 million in total assets, $241.6 million in loans after $8.5 million of loan discounts, and $267.3 million in deposits. From June 30, 2014 to September 30, 2014, the Company had $449.9 million growth in non-covered loans. Excluding the loans acquired from Traditions, the Company produced $208.3 million of organic non-covered loan growth.
Because acquisitions are growth and capital management strategies, earnings excluding amortization of intangibles after-tax are useful in evaluating the Company. Diluted earnings per share excluding intangible amortization for the third quarter of 2014 was $0.42 compared to $0.33 diluted earnings per share excluding intangible amortization for the same period in 2013.
"I am eager to report the Company has achieved $208.3 million in organic non-covered loan growth since the second quarter 2014," said John Allison, Chairman. "At this point, we know there is still an ongoing need for organic loan growth and are diligently pursuing the opportunities set before us. Additionally, on September 26, 2014, we completed the systems conversion of Traditions and now can speed up the process of improving the financial metrics to maximize returns to our shareholders."
Randy Sims, Chief Executive Officer, added, "We are pleased to report our diluted earnings per share improved eight cents, during the quarter just ended when compared to the third quarter of 2013. Excluding merger expenses, we have again, for the fourteenth consecutive quarter, reported the most profitable quarter in the Company's history with a diluted earnings per share excluding merger expenses of $0.45 per share. We were also happy to be reporting a 41.88% core efficiency ratio and 1.69% return on average assets excluding merger expenses for the third quarter of 2014."
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 third quarter 2014 impairment testing, there were non-loss sharing pools evaluated by the Company which were determined to have a material projected credit improvement. As a result of this improvement, the Company will recognize approximately $4.7 million as an adjustment to yield over the weighted average life of the loans ($1.1 million was recognized during the third quarter of 2014).
Net interest income for the third quarter of 2014 increased 69.6% to $78.6 million from $46.4 million during the third quarter of 2013. For the third quarter of 2014, the effective yield on non-covered loans and covered loans was 5.84% and 17.23%, respectively. Net interest margin, on a fully taxable equivalent basis, was 5.26% for the quarter just ended. The pools which have been determined to have material projected credit improvement as a result of the quarterly impairment testing and the acquisition of Liberty and Traditions have significantly changed the mix and metrics on the net interest margin since December 31, 2012. Although there have been many changes since 2012, the Company continues to remain focused on expanding its net interest margin through opportunities such as improved pricing on interest-bearing deposits.
The Company experienced a $4.2 million increase in the provision for loan losses for non-covered loans during the third quarter of 2014 versus 2013. This expected increase is not an indication of a decline in asset quality, but primarily a reflection of the migration of the Liberty loans (and to a lesser extent Traditions loans) from purchased-loan accounting treatment to originated-loan accounting treatment. Based upon current accounting guidance the allowance for loan losses is not carried over in an acquisition. As a result, virtually none of the Liberty footprint loans had any allocation of the allowance for loan losses at year end. This is the result of all loans acquired on October 24, 2013 from Liberty being recorded at fair value in accordance with the fair value methodology prescribed in ASC Topic 820. However, as the acquired Liberty loans payoff or renew and the Liberty footprint originates new loan production, it is necessary to establish an allowance which represents an amount that, in management's judgment, will be adequate to absorb credit losses.
The Company reported $10.8 million of non-interest income for the third quarter of 2014, compared to $9.3 million for the third quarter of 2013. The most important components of the third quarter non-interest income were $6.3 million from service charges on deposits accounts, $6.0 million from other service charges and fees, $1.9 million from mortgage lending income, $984,000 from insurance commissions, $888,000 from other income, $529,000 from gain on sale of OREO, $306,000 from trust fees, and $183,000 from gain on sale of SBA loans offset by the $6.9 million of net amortization on the FDIC indemnification asset and $35,000 loss on sale of premises and equipment.
The Company is currently in negotiations with the FDIC regarding the remaining loss share agreements associated with the Key West Bank loan portfolio acquired on March 26, 2010. At this point, the Company has not reached an agreement with the FDIC to buyout the Key West Bank loss share. As a result, during the third quarter, the Company began accreting the credit improvement ($186,000) and amortized the indemnification asset ($1.1 million) and recorded a true-up expense ($41,000) similar to the other impairment tests we have completed in the past. Therefore, it created a negative third quarter 2014 financial impact to earnings for the Company of approximately $1.0 million on a pre-tax basis.
Non-interest expense for the third quarter of 2014 was $42.8 million compared to $26.7 million for the third quarter of 2013. These increases are primarily associated with the acquisitions of Liberty during the fourth quarter of 2013 and Traditions during the third quarter of 2014. For the third quarter of 2014, our core efficiency ratio was 41.88% which is improved from the 44.76% reported for third quarter of 2013.
Financial Condition
Total non-covered loans were $4.58 billion at September 30, 2014 compared to $4.19 billion at December 31, 2013. Total covered loans were $251.0 million at September 30, 2014 compared to $282.5 million at December 31, 2013. Total deposits were $5.28 billion at September 30, 2014 compared to $5.39 billion at December 31, 2013. Total assets were $7.20 billion at September 30, 2014 compared to $6.81 billion at December 31, 2013.
Non-performing non-covered loans were $41.0 million as of September 30, 2014, of which $16.3 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 0.90% as of September 30, 2014 compared to 0.91% as of December 31, 2013. Non-performing non-covered assets were $60.4 million as of September 30, 2014, of which $20.7 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 0.88% as of September 30, 2014 compared to 1.07% as of December 31, 2013.
The Company's allowance for loan losses for non-covered loans was $50.7 million at September 30, 2014, or 1.11% of total non-covered loans, compared to $39.0 million, or 0.93% of total non-covered loans, at December 31, 2013. As of September 30, 2014 and December 31, 2013, the allowance for loan losses for non-covered loans plus discount for credit losses on non-covered loans acquired to total non-covered loans plus discount for credit losses on non-covered loans acquired was 4.20% and 4.89%, respectively. As of September 30, 2014 and December 31, 2013, the Company's allowance for loan losses for non-covered loans was 124% and 102% of its total non-performing non-covered loans, respectively.
Stockholders' equity was $958.7 million at September 30, 2014 compared to $841.0 million at December 31, 2013, an increase of $117.7 million. Book value per common share was $14.42 at September 30, 2014 compared to $12.92 at December 31, 2013. Tangible book value per common share was $9.39 at September 30, 2014 compared to $7.94 December 31, 2013.
Branches
During the third quarter of 2014, the Company opened one de novo branch in Naples, Florida and acquired eight branches through the acquisition of Traditions. In an effort to achieve efficiencies primarily from the recent acquisitions, the Company closed or merged two Arkansas locations during the third quarter of 2014. The Company has 82 branches in Arkansas, 59 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 16, 2014. Interested parties can listen to this call by calling 1-877-508-9586 and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-344-7529, Passcode: 10052237, which will be available until October 24, 2014 at 8:00 a.m. CT (9:00 ET). Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com under "Investor Relations" for 12 months.
General
This release contains forward-looking statements regarding the Company's plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand, the ability to successfully integrate new acquisitions and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Home BancShares, Inc.'s financial results is included in its Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission.
Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Our wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has locations in Arkansas, Florida and South Alabama. The Company's common stock is traded through the NASDAQ Global Select Market under the symbol "HOMB."
Home BancShares, Inc. | |||||
Consolidated End of Period Balance Sheets | |||||
(Unaudited) | |||||
(In thousands) | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
ASSETS | |||||
Cash and due from banks | $ 109,067 | $ 122,167 | $ 124,662 | $ 104,005 | $ 77,261 |
Interest-bearing deposits with other banks | 28,416 | 21,385 | 89,897 | 61,529 | 35,080 |
Cash and cash equivalents | 137,483 | 143,552 | 214,559 | 165,534 | 112,341 |
Federal funds sold | 44,275 | 850 | 22,925 | 4,275 | 10,700 |
Investment securities - available-for-sale | 1,067,617 | 1,122,803 | 1,175,827 | 1,175,484 | 839,560 |
Investment securities - held-to-maturity | 296,036 | 205,566 | 132,363 | 114,621 | 9,528 |
Loans receivable not covered by loss share | 4,583,015 | 4,133,109 | 4,126,564 | 4,194,437 | 2,378,838 |
Loans receivable covered by FDIC loss share | 250,970 | 263,157 | 270,641 | 282,516 | 308,072 |
Allowance for loan losses | (52,844) | (51,173) | (48,991) | (43,815) | (38,748) |
Loans receivable, net | 4,781,141 | 4,345,093 | 4,348,214 | 4,433,138 | 2,648,162 |
Bank premises and equipment, net | 211,726 | 196,194 | 196,392 | 197,224 | 119,637 |
Foreclosed assets held for sale not covered by loss share | 19,367 | 20,960 | 23,484 | 29,869 | 14,158 |
Foreclosed assets held for sale covered by FDIC loss share | 13,513 | 17,196 | 20,201 | 20,999 | 24,320 |
FDIC indemnification asset | 42,104 | 56,626 | 73,348 | 89,611 | 101,192 |
Cash value of life insurance | 70,913 | 64,066 | 63,787 | 63,501 | 59,602 |
Accrued interest receivable | 23,366 | 20,847 | 21,865 | 22,944 | 14,275 |
Deferred tax asset, net | 68,070 | 73,151 | 82,886 | 89,412 | 46,045 |
Goodwill | 313,320 | 301,736 | 301,736 | 301,736 | 85,681 |
Core deposit and other intangibles | 21,004 | 19,984 | 21,131 | 22,298 | 9,655 |
Other assets | 86,436 | 77,516 | 82,058 | 81,215 | 66,450 |
Total assets | $ 7,196,371 | $ 6,666,140 | $ 6,780,776 | $ 6,811,861 | $ 4,161,306 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Liabilities | |||||
Deposits: | |||||
Demand and non-interest-bearing | $ 1,170,441 | $ 1,129,073 | $ 1,057,148 | $ 991,161 | $ 757,328 |
Savings and interest-bearing transaction accounts | 2,830,829 | 2,756,060 | 2,827,787 | 2,792,423 | 1,683,010 |
Time deposits | 1,276,001 | 1,306,876 | 1,453,575 | 1,609,462 | 808,480 |
Total deposits | 5,277,271 | 5,192,009 | 5,338,510 | 5,393,046 | 3,248,818 |
Federal funds purchased | -- | -- | -- | -- | -- |
Securities sold under agreements to repurchase | 160,895 | 144,602 | 137,524 | 160,984 | 71,307 |
FHLB borrowed funds | 713,553 | 349,110 | 354,935 | 350,661 | 270,232 |
Accrued interest payable and other liabilities | 25,145 | 22,358 | 20,113 | 5,389 | 22,714 |
Subordinated debentures | 60,826 | 60,826 | 60,826 | 60,826 | 3,093 |
Total liabilities | 6,237,690 | 5,768,905 | 5,911,908 | 5,970,906 | 3,616,164 |
Stockholders' equity | |||||
Common stock | 665 | 651 | 651 | 651 | 563 |
Capital surplus | 749,573 | 709,516 | 708,868 | 708,058 | 417,627 |
Retained earnings | 203,107 | 182,382 | 158,838 | 136,386 | 128,316 |
Accumulated other comprehensive income (loss) | 5,336 | 4,686 | 511 | (4,140) | (1,364) |
Total stockholders' equity | 958,681 | 897,235 | 868,868 | 840,955 | 545,142 |
Total liabilities and stockholders' equity | $ 7,196,371 | $ 6,666,140 | $ 6,780,776 | $ 6,811,861 | $ 4,161,306 |
Home BancShares, Inc. | |||||||
Consolidated Statements of Income | |||||||
(Unaudited) | |||||||
Quarter Ended | Nine Months Ended | ||||||
(In thousands) | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest income | |||||||
Loans | $ 75,917 | $ 75,404 | $ 75,013 | $ 65,338 | $ 45,003 | $ 226,334 | $ 133,198 |
Investment securities | |||||||
Taxable | 4,905 | 4,762 | 4,470 | 4,760 | 2,645 | 14,137 | 7,538 |
Tax-exempt | 2,552 | 2,379 | 2,317 | 1,554 | 1,507 | 7,248 | 4,455 |
Deposits - other banks | 20 | 29 | 24 | 51 | 19 | 73 | 203 |
Federal funds sold | 7 | 12 | 16 | 14 | 2 | 35 | 15 |
Total interest income | 83,401 | 82,586 | 81,840 | 71,717 | 49,176 | 247,827 | 145,409 |
Interest expense | |||||||
Interest on deposits | 3,243 | 3,095 | 3,384 | 3,320 | 1,810 | 9,722 | 6,424 |
Federal funds purchased | 2 | -- | -- | 1 | 3 | 2 | 3 |
FHLB borrowed funds | 1,035 | 952 | 946 | 915 | 910 | 2,933 | 2,926 |
Securities sold under agreements to repurchase | 186 | 168 | 182 | 171 | 87 | 536 | 253 |
Subordinated debentures | 330 | 328 | 328 | 255 | 16 | 986 | 263 |
Total interest expense | 4,796 | 4,543 | 4,840 | 4,662 | 2,826 | 14,179 | 9,869 |
Net interest income | 78,605 | 78,043 | 77,000 | 67,055 | 46,350 | 233,648 | 135,540 |
Provision for loan losses | 4,241 | 6,115 | 6,938 | 4,330 | -- | 17,294 | 850 |
Net interest income after provision for loan losses | 74,364 | 71,928 | 70,062 | 62,725 | 46,350 | 216,354 | 134,690 |
Non-interest income | |||||||
Service charges on deposit accounts | 6,275 | 6,193 | 5,911 | 6,001 | 4,072 | 18,379 | 11,869 |
Other service charges and fees | 5,977 | 5,978 | 5,686 | 5,146 | 3,671 | 17,641 | 10,587 |
Trust fees | 306 | 323 | 436 | 284 | 15 | 1,065 | 51 |
Mortgage lending income | 1,901 | 1,801 | 1,513 | 1,470 | 1,527 | 5,215 | 4,518 |
Insurance commissions | 984 | 934 | 1,416 | 778 | 519 | 3,334 | 1,642 |
Income from title services | 59 | 53 | 50 | 122 | 156 | 162 | 401 |
Increase in cash value of life insurance | 322 | 281 | 288 | 235 | 203 | 891 | 601 |
Dividends from FHLB, FRB, Bankers' bank & other | 389 | 501 | 316 | 273 | 179 | 1,206 | 755 |
Gain on sale of SBA loans | 183 | -- | -- | -- | 79 | 183 | 135 |
Gain (loss) on sale of premises & equipment, net | (35) | 445 | 9 | (315) | 303 | 419 | 712 |
Gain (loss) on OREO, net | 529 | 859 | 539 | 347 | 777 | 1,927 | 1,304 |
Gain (loss) on securities, net | -- | -- | -- | -- | -- | -- | 111 |
FDIC indemnification accretion/(amortization), net | (6,947) | (6,622) | (4,744) | (2,949) | (3,177) | (18,313) | (7,452) |
Other income | 888 | 793 | 761 | 825 | 994 | 2,442 | 2,914 |
Total non-interest income | 10,831 | 11,539 | 12,181 | 12,217 | 9,318 | 34,551 | 28,148 |
Non-interest expense | |||||||
Salaries and employee benefits | 19,368 | 18,813 | 18,933 | 19,504 | 12,981 | 57,114 | 38,890 |
Occupancy and equipment | 6,234 | 6,251 | 6,226 | 5,670 | 4,010 | 18,711 | 11,498 |
Data processing expense | 1,801 | 1,793 | 1,793 | 1,538 | 1,114 | 5,387 | 3,855 |
Other operating expenses | 15,414 | 11,763 | 12,405 | 28,162 | 8,610 | 39,582 | 24,190 |
Total non-interest expense | 42,817 | 38,620 | 39,357 | 54,874 | 26,715 | 120,794 | 78,433 |
Income before income taxes | 42,378 | 44,847 | 42,886 | 20,068 | 28,953 | 130,111 | 84,405 |
Income tax expense | 15,007 | 16,418 | 15,549 | 7,118 | 10,590 | 46,974 | 30,835 |
Net income | $ 27,371 | $ 28,429 | $ 27,337 | $ 12,950 | $ 18,363 | $ 83,137 | $ 53,570 |
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) | 2014 | 2014 | 2014 | 2013 | 2013 | 2014 | 2013 | ||
PER SHARE DATA | |||||||||
Diluted earnings per common share | $ 0.41 | $ 0.43 | $ 0.42 | $ 0.19 | $ 0.33 | $ 1.26 | $ 0.95 | ||
Diluted earnings per common share excluding intangible amortization | 0.42 | 0.44 | 0.43 | 0.21 | 0.33 | 1.29 | 0.97 | ||
Basic earnings per common share | 0.41 | 0.44 | 0.42 | 0.19 | 0.33 | 1.27 | 0.96 | ||
Dividends per share - common | 0.100 | 0.075 | 0.075 | 0.075 | 0.075 | 0.250 | 0.215 | ||
Book value per common share | 14.42 | 13.77 | 13.34 | 12.92 | 9.69 | 14.42 | 9.69 | ||
Tangible book value per common share | 9.39 | 8.83 | 8.38 | 7.94 | 7.99 | 9.39 | 7.99 | ||
STOCK INFORMATION | |||||||||
Average common shares outstanding | 66,223 | 65,140 | 65,123 | 62,865 | 56,256 | 65,499 | 56,238 | ||
Average diluted shares outstanding | 66,616 | 65,545 | 65,511 | 63,234 | 56,620 | 65,889 | 56,577 | ||
End of period common shares outstanding | 66,483 | 65,142 | 65,135 | 65,082 | 56,278 | 66,483 | 56,278 | ||
ANNUALIZED PERFORMANCE METRICS | |||||||||
Return on average assets | 1.56% | 1.70% | 1.64% | 0.83% | 1.80% | 1.63% | 1.73% | ||
Return on average assets excluding intangible amortization | 1.68% | 1.83% | 1.77% | 0.91% | 1.89% | 1.76% | 1.82% | ||
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) | 3.08% | 3.27% | 3.26% | 2.86% | 3.09% | 3.20% | 2.93% | ||
Return on average common equity | 11.58% | 12.96% | 13.00% | 6.68% | 13.63% | 12.48% | 13.53% | ||
Return on average tangible common equity excluding intangible amortization | 18.46% | 20.94% | 21.48% | 10.83% | 17.04% | 20.21% | 16.99% | ||
Efficiency ratio | 45.70% | 41.09% | 42.07% | 66.73% | 45.67% | 42.95% | 45.56% | ||
Core efficiency ratio | 41.88% | 41.56% | 41.39% | 45.22% | 44.76% | 41.61% | 45.63% | ||
Net interest margin - FTE | 5.26% | 5.50% | 5.48% | 5.09% | 5.41% | 5.41% | 5.25% | ||
Fully taxable equivalent adjustment | $ 1,728 | $ 1,624 | $ 1,591 | $ 1,133 | $ 1,073 | $ 4,943 | $ 3,199 | ||
Total revenue | 94,232 | 94,125 | 94,021 | 83,934 | 58,494 | 282,378 | 173,557 | ||
EARNINGS EXCLUDING | |||||||||
INTANGIBLE AMORTIZATION | |||||||||
GAAP net income available to common shareholders | $ 27,371 | $ 28,429 | $ 27,337 | $ 12,950 | $ 18,363 | $ 83,137 | $ 53,570 | ||
Intangible amortization after-tax | 701 | 697 | 709 | 740 | 487 | 2,107 | 1,462 | ||
Earnings excluding intangible amortization | $ 28,072 | $ 29,126 | $ 28,046 | $ 13,690 | $ 18,850 | $ 85,244 | $ 55,032 | ||
GAAP diluted earnings per share | $ 0.41 | $ 0.43 | $ 0.42 | $ 0.19 | $ 0.33 | $ 1.26 | $ 0.95 | ||
Intangible amortization after-tax | 0.01 | 0.01 | 0.01 | 0.02 | -- | 0.03 | 0.02 | ||
Diluted earnings per share excluding intangible amortization | $ 0.42 | $ 0.44 | $ 0.43 | $ 0.21 | $ 0.33 | $ 1.29 | $ 0.97 | ||
OTHER OPERATING EXPENSES | |||||||||
Advertising | $ 673 | $ 581 | $ 522 | $ 653 | $ 363 | $ 1,776 | $ 1,176 | ||
Merger and acquisition expenses | 3,772 | 106 | 849 | 17,315 | 1,034 | 4,727 | 1,063 | ||
Amortization of intangibles | 1,153 | 1,147 | 1,167 | 1,218 | 802 | 3,467 | 2,406 | ||
Electronic banking expense | 1,307 | 1,312 | 1,338 | 1,458 | 926 | 3,957 | 2,749 | ||
Directors' fees | 236 | 206 | 227 | 179 | 188 | 669 | 588 | ||
Due from bank service charges | 200 | 205 | 199 | 179 | 136 | 604 | 437 | ||
FDIC and state assessment | 972 | 1,058 | 1,114 | 858 | 684 | 3,144 | 1,991 | ||
Insurance | 657 | 582 | 614 | 756 | 572 | 1,853 | 1,693 | ||
Legal and accounting | 510 | 419 | 417 | 450 | 227 | 1,346 | 943 | ||
Other professional fees | 716 | 583 | 507 | 561 | 404 | 1,806 | 1,367 | ||
Operating supplies | 468 | 515 | 472 | 455 | 309 | 1,455 | 984 | ||
Postage | 323 | 327 | 352 | 295 | 212 | 1,002 | 650 | ||
Telephone | 548 | 463 | 454 | 375 | 291 | 1,465 | 885 | ||
Other expense | 3,879 | 4,259 | 4,173 | 3,410 | 2,462 | 12,311 | 7,258 | ||
Total other operating expenses | $ 15,414 | $ 11,763 | $ 12,405 | $ 28,162 | $ 8,610 | $ 39,582 | $ 24,190 |
Home BancShares, Inc. | |||||
Selected Financial Information | |||||
(Unaudited) | |||||
(Dollars in thousands) | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
BALANCE SHEET RATIOS | |||||
Total loans to total deposits | 91.60% | 84.67% | 82.37% | 83.01% | 82.70% |
Common equity to assets | 13.3% | 13.5% | 12.8% | 12.3% | 13.1% |
Tangible common equity to tangible assets | 9.1% | 9.1% | 8.5% | 8.0% | 11.1% |
ALLOWANCE FOR LOAN LOSSES | |||||
Non-Covered | |||||
Balance, beginning of period | $ 48,248 | $ 44,024 | $ 39,022 | $ 37,642 | $ 40,498 |
Loans charged off | 2,544 | 2,526 | 2,424 | 2,417 | 5,101 |
Recoveries of loans previously charged off | 750 | 635 | 488 | 358 | 2,245 |
Net loans (recovered)/charged off | 1,794 | 1,891 | 1,936 | 2,059 | 2,856 |
Provision for loan losses | 4,241 | 6,115 | 6,938 | 3,439 | -- |
Balance, end of period | $ 50,695 | $ 48,248 | $ 44,024 | $ 39,022 | $ 37,642 |
Discount for credit losses on non-covered loans acquired | 148,172 | 157,705 | 164,324 | 174,637 | 77,413 |
Net (recoveries) charge-offs on loans not covered by loss share to average non-covered loans | 0.16% | 0.18% | 0.19% | 0.22% | 0.48% |
Allowance for loan losses for non-covered loans to total non-covered loans | 1.11% | 1.17% | 1.07% | 0.93% | 1.58% |
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 | 4.20% | 4.80% | 4.86% | 4.89% | 4.68% |
Covered | |||||
Balance, beginning of period | $ 2,925 | $ 4,967 | $ 4,793 | $ 1,106 | $ 952 |
Loans charged off | 863 | 1,051 | -- | 287 | -- |
Recoveries of loans previously charged off | 87 | 128 | 174 | 29 | 154 |
Net loans charged off/(recovered) | 776 | 923 | (174) | 258 | (154) |
Provision for loan losses forecasted outside of loss share | -- | 280 | -- | -- | -- |
Provision for loan losses before benefit attributable to FDIC loss share agreements | -- | (1,399) | -- | 3,945 | -- |
Benefit attributable to FDIC loss share agreements | -- | 1,119 | -- | (3,054) | -- |
Net provision for loan losses | -- | -- | -- | 891 | -- |
Increase (decrease) in FDIC indemnificaton asset | -- | (1,119) | -- | 3,054 | -- |
Balance, end of period | $ 2,149 | $ 2,925 | $ 4,967 | $ 4,793 | $ 1,106 |
Total allowance for loan losses | $ 52,844 | $ 51,173 | $ 48,991 | $ 43,815 | $ 38,748 |
NON-PERFORMING ASSETS | |||||
NOT COVERED BY LOSS SHARE | |||||
Non-performing non-covered loans | |||||
Non-accrual non-covered loans | $ 22,381 | $ 21,900 | $ 20,697 | $ 15,133 | $ 17,187 |
Non-covered loans past due 90 days or more | 18,644 | 23,081 | 21,981 | 23,141 | 11,248 |
Total non-performing non-covered loans | 41,025 | 44,981 | 42,678 | 38,274 | 28,435 |
Other non-performing non-covered assets | |||||
Non-covered foreclosed assets held for sale, net | 19,367 | 20,960 | 23,484 | 29,869 | 14,158 |
Other non-performing non-covered assets | -- | 10 | 47 | 281 | 185 |
Total other non-performing non-covered assets | 19,367 | 20,970 | 23,531 | 30,150 | 14,343 |
Total non-performing non-covered assets | $ 60,392 | $ 65,951 | $ 66,209 | $ 68,424 | $ 42,778 |
Allowance for loan losses for non-covered loans to non-performing non-covered loans | 123.57% | 107.26% | 103.15% | 101.95% | 132.38% |
Non-performing non-covered loans to total non-covered loans | 0.90% | 1.09% | 1.03% | 0.91% | 1.20% |
Non-performing non-covered assets to total non-covered assets | 0.88% | 1.04% | 1.03% | 1.07% | 1.15% |
Home BancShares, Inc. | |||||
Loan Information | |||||
(Unaudited) | |||||
(Dollars in thousands) | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
LOANS NOT COVERED BY LOSS SHARE | |||||
Real estate | |||||
Commercial real estate loans | |||||
Non-farm/non-residential | $ 1,918,827 | $ 1,733,029 | $ 1,722,910 | $ 1,739,668 | $ 1,026,937 |
Construction/land development | 660,107 | 603,216 | 566,205 | 562,667 | 314,232 |
Agricultural | 78,243 | 64,409 | 74,775 | 81,618 | 31,906 |
Residential real estate loans | |||||
Residential 1-4 family | 935,547 | 887,097 | 890,981 | 913,332 | 529,732 |
Multifamily residential | 251,726 | 218,615 | 206,348 | 213,232 | 117,639 |
Total real estate | 3,844,450 | 3,506,366 | 3,461,219 | 3,510,517 | 2,020,446 |
Consumer | 57,821 | 56,197 | 60,735 | 69,570 | 30,478 |
Commercial and industrial | 547,706 | 447,459 | 491,525 | 511,421 | 268,900 |
Agricultural | 64,875 | 56,852 | 44,017 | 37,129 | 30,612 |
Other | 68,163 | 66,235 | 69,068 | 65,800 | 28,402 |
Loans receivable not covered by loss share | $ 4,583,015 | $ 4,133,109 | $ 4,126,564 | $ 4,194,437 | $ 2,378,838 |
LOANS COVERED BY LOSS SHARE | |||||
Real estate | |||||
Commercial real estate loans | |||||
Non-farm/non-residential | $ 99,518 | $ 107,171 | $ 113,593 | $ 117,164 | $ 134,843 |
Construction/land development | 42,713 | 44,763 | 45,381 | 48,388 | 51,492 |
Agricultural | 1,039 | 1,145 | 1,184 | 1,232 | 1,253 |
Residential real estate loans | |||||
Residential 1-4 family | 90,088 | 91,706 | 92,918 | 98,403 | 102,673 |
Multifamily residential | 8,263 | 10,002 | 10,043 | 10,378 | 10,525 |
Total real estate | 241,621 | 254,787 | 263,119 | 275,565 | 300,786 |
Consumer | 22 | 20 | 16 | 20 | 17 |
Commercial and industrial | 8,295 | 7,368 | 6,440 | 5,852 | 6,291 |
Agricultural | -- | -- | -- | -- | -- |
Other | 1,032 | 982 | 1,066 | 1,079 | 978 |
Loans receivable covered by loss share | $ 250,970 | $ 263,157 | $ 270,641 | $ 282,516 | $ 308,072 |
Home BancShares, Inc. | |||||||
Consolidated Net Interest Margin | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
September 30, 2014 | June 30, 2014 | ||||||
(Dollars in thousands) | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | |
ASSETS | |||||||
Earning assets | |||||||
Interest-bearing balances due from banks | $ 40,723 | $ 20 | 0.19% | $ 54,726 | $ 29 | 0.21% | |
Federal funds sold | 13,604 | 7 | 0.20% | 23,349 | 12 | 0.21% | |
Investment securities - taxable | 1,044,732 | 4,905 | 1.86% | 1,038,011 | 4,762 | 1.84% | |
Investment securities - non-taxable - FTE | 302,859 | 4,174 | 5.47% | 287,679 | 3,889 | 5.42% | |
Loans receivable - FTE | 4,661,600 | 76,024 | 6.47% | 4,403,767 | 75,518 | 6.88% | |
Total interest-earning assets | 6,063,518 | 85,130 | 5.57% | 5,807,532 | 84,210 | 5.82% | |
Non-earning assets | 907,407 | 914,388 | |||||
Total assets | $ 6,970,925 | $ 6,721,920 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Liabilities | |||||||
Interest-bearing liabilities | |||||||
Savings and interest-bearing transaction accounts | $ 2,835,267 | $ 1,376 | 0.19% | $ 2,808,856 | $ 1,227 | 0.18% | |
Time deposits | 1,315,772 | 1,867 | 0.56% | 1,380,249 | 1,868 | 0.54% | |
Total interest-bearing deposits | 4,151,039 | 3,243 | 0.31% | 4,189,105 | 3,095 | 0.30% | |
Federal funds purchased | 2,364 | 2 | 0.34% | 110 | -- | 0.00% | |
Securities sold under agreement to repurchase | 150,239 | 186 | 0.49% | 136,444 | 168 | 0.49% | |
FHLB borrowed funds | 494,650 | 1,035 | 0.83% | 376,326 | 952 | 1.01% | |
Subordinated debentures | 60,826 | 330 | 2.15% | 60,826 | 328 | 2.16% | |
Total interest-bearing liabilities | 4,859,118 | 4,796 | 0.39% | 4,762,811 | 4,543 | 0.38% | |
Non-interest bearing liabilities | |||||||
Non-interest bearing deposits | 1,148,923 | 1,054,233 | |||||
Other liabilities | 25,090 | 24,832 | |||||
Total liabilities | 6,033,131 | 5,841,876 | |||||
Shareholders' equity | 937,794 | 880,044 | |||||
Total liabilities and shareholders' equity | $ 6,970,925 | $ 6,721,920 | |||||
Net interest spread | 5.18% | 5.44% | |||||
Net interest income and margin - FTE | $ 80,334 | 5.26% | $ 79,667 | 5.50% |
Home BancShares, Inc. | |||||||
Consolidated Net Interest Margin | |||||||
(Unaudited) | |||||||
Nine Months Ended | |||||||
September 30, 2014 | September 30, 2013 | ||||||
(Dollars in thousands) | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | |
ASSETS | |||||||
Earning assets | |||||||
Interest-bearing balances due from banks | $ 52,741 | $ 73 | 0.19% | $ 108,646 | $ 203 | 0.25% | |
Federal funds sold | 22,746 | 35 | 0.21% | 10,060 | 15 | 0.20% | |
Investment securities - taxable | 1,029,496 | 14,137 | 1.84% | 571,375 | 7,538 | 1.76% | |
Investment securities - non-taxable - FTE | 292,349 | 11,852 | 5.42% | 173,796 | 7,275 | 5.60% | |
Loans receivable - FTE | 4,498,643 | 226,674 | 6.74% | 2,672,088 | 133,577 | 6.68% | |
Total interest-earning assets | 5,895,975 | 252,771 | 5.73% | 3,535,965 | 148,608 | 5.62% | |
Non-earning assets | 923,800 | 592,438 | |||||
Total assets | $ 6,819,775 | $ 4,128,403 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Liabilities | |||||||
Interest-bearing liabilities | |||||||
Savings and interest-bearing transaction accounts | $ 2,809,963 | $ 3,882 | 0.18% | $ 1,747,040 | $ 2,191 | 0.17% | |
Time deposits | 1,407,255 | 5,840 | 0.55% | 906,015 | 4,233 | 0.62% | |
Total interest-bearing deposits | 4,217,218 | 9,722 | 0.31% | 2,653,055 | 6,424 | 0.32% | |
Federal funds purchased | 1,001 | 2 | 0.27% | 510 | 3 | 0.00% | |
Securities sold under agreement to repurchase | 145,348 | 536 | 0.49% | 72,078 | 253 | 0.47% | |
FHLB borrowed funds | 416,531 | 2,933 | 0.94% | 135,093 | 2,926 | 2.90% | |
Subordinated debentures | 60,826 | 986 | 2.17% | 11,023 | 263 | 3.19% | |
Total interest-bearing liabilities | 4,840,924 | 14,179 | 0.39% | 2,871,759 | 9,869 | 0.46% | |
Non-interest bearing liabilities | |||||||
Non-interest bearing deposits | 1,068,626 | 704,123 | |||||
Other liabilities | 19,642 | 22,967 | |||||
Total liabilities | 5,929,192 | 3,598,849 | |||||
Shareholders' equity | 890,583 | 529,554 | |||||
Total liabilities and shareholders' equity | $ 6,819,775 | $ 4,128,403 | |||||
Net interest spread | 5.34% | 5.16% | |||||
Net interest income and margin - FTE | $ 238,592 | 5.41% | $ 138,739 | 5.25% |
CONTACT: FOR MORE INFORMATION CONTACT: Brian S. Davis Chief Accounting Officer & Investor Relations Officer Home BancShares, Inc. (501) 328-4770