EXHIBIT 99.1
Home BancShares, Inc. Announces a 28.2% Increase in 2016 Earnings
CONWAY, Ark., Jan. 19, 2017 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NASDAQ:HOMB), parent company of Centennial Bank, today announced net income for the year ended December 31, 2016 of $177.1 million compared to $138.2 million for the year ended 2015 for a 28.2% increase. Diluted earnings per share for the year ended 2016 was $1.26 per share compared to $1.01 per share (split adjusted) for 2015, representing an increase of $0.25 per share or 24.8% for the year ended 2016 when compared to the previous year.
For the fourth quarter of 2016, the Company recorded a 29.8% increase in quarterly profit to $48.6 million, for the fourth quarter of 2016 compared to $37.4 million, for the same quarter in 2015. Diluted earnings per share for the fourth quarter of 2016 was $0.35 per share compared to $0.27 per share (split adjusted) for 2015, representing an increase of $0.08 per share or 29.6% for the fourth quarter of 2016 when compared to the same quarter in the prior year. Excluding a $4.5 million of reduced provision for loan losses as a result of a significant loan recovery offset by $433,000 of merger expenses associated with the upcoming acquisitions, diluted earnings per share for the fourth quarter of 2016 was $0.33 per share. The Company also announced $275.4 million in quarterly organic loan growth and a 35.97% core efficiency ratio during the fourth quarter of 2016.
“The annual and quarterly earnings performance for 2016 exceeded expectations,” said John Allison, Chairman. “At the beginning of 2016, we had what we considered an aggressive goal in place to reach annual diluted earnings per share of $1.25. While it took both discipline and hard work, the Company exceeded this goal for the year by reporting exceptional results for diluted earnings per share of $1.26 per share.”
“We are proud to report the fourth quarter of 2016 as the twenty-third consecutive quarter reporting the most profitable quarter in the Company’s history,” said Randy Sims, Home BancShares, Inc. Chief Executive Officer. “Not only did the Company report an outstanding $5.0 million or 11.4% increase from our previously reported record earnings, but we also reported record results for diluted earnings per share of $0.35 per share and core efficiency ratio of 35.97%.”
“As the fourth quarter organic loan growth and financial results show, the efforts made by our team of associates are rewarding. We are pleased with the strong finish for 2016, and look forward to the opportunities that 2017 will create,” added Tracy French, Centennial Bank President and Chief Executive Officer. “We aim to continue growing loans and cutting expenses to improve earnings, while continuing to look for acquisition opportunities in attractive markets to increase our return to our shareholders.”
Operating Highlights
Each quarter we perform credit impairment tests on the loans acquired in our acquisitions. During our fourth 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 and reduction of pay-offs in the acquired loan portfolios, resulted in a net decline of recognized accretion income when compared to the third quarter of 2016. Accretion yield decreased approximately $3.3 million from $11.9 million for the third quarter of 2016 to $8.6 million for fourth quarter of 2016. This $3.3 million decline is primarily the result of reduced accretion income from acquired loan pay-offs, which were $4.3 million during the third quarter of 2016 compared to $1.9 million in the fourth quarter of 2016.
Net interest margin, on a fully taxable equivalent basis, was 4.75% for the quarter just ended compared to 4.95% for the same quarter in 2015 and compared to 4.86% for the third quarter of 2016. The net interest margin, excluding accretion yield increased slightly from the third quarter of 2016 to the fourth quarter of 2016 at 4.25% and 4.31%, respectively.
During the fourth quarter of 2016, the Company recorded a provision for loan loss of $1.7 million compared to $8.9 million in the fourth quarter of 2015. The Company was able to reduce fourth quarter 2016 provision for loan losses as a result of a significant loan recovery from a borrower which was charged-off in 2010. The Company estimates that the fourth quarter 2016 provision for loan losses was reduced by $4.5 million as a result of this loan recovery. For the fourth quarter of 2016, net recoveries were $1.9 million compared to net charge-offs of $3.3 million for the fourth quarter of 2015.
The Company reported $23.8 million of non-interest income for the fourth quarter of 2016, compared to $17.3 million for the fourth quarter of 2015. The most important components of the fourth quarter non-interest income were $7.6 million from other service charges and fees, $6.4 million from service charges on deposits accounts, $4.1 million from mortgage lending income and $2.1 million from other income.
Non-interest expense for the fourth quarter of 2016 was $47.5 million compared to $49.0 million for the fourth quarter of 2015. Non-interest expense excluding merger expenses for the fourth quarter of 2016 was $47.1 million compared to $46.1 million for the fourth quarter of 2015. This increase excluding merger expenses is primarily the result of $1.4 million growth in non-interest expense related to the Centennial Commercial Finance Group (“Centennial CFG”) offset by efficiencies achieved throughout the Company including the Bay Cities acquisition in the fourth quarter of 2015. The fourth quarter of 2016 includes $231,000 of write-downs on vacant properties from closed facilities. For the fourth quarter of 2016, our core efficiency ratio was 35.97% which is improved from the 37.86% reported for fourth quarter of 2015.
Financial Condition
Total loans receivable were $7.39 billion at December 31, 2016 compared to $6.64 billion at December 31, 2015. Total deposits were $6.94 billion at December 31, 2016 compared to $6.44 billion at December 31, 2015. Total assets were $9.81 billion at December 31, 2016 compared to $9.29 billion at December 31, 2015.
From December 31, 2015 to December 31, 2016, the Company produced approximately $746.1 million of organic loan growth, of which $353.4 million is associated with loan originations in the legacy footprint with the remaining $392.7 million being associated with Centennial CFG. Centennial CFG had loans of $1.11 billion at December 31, 2016.
From September 30, 2016 to December 31, 2016, the Company produced approximately $275.4 million of organic loan growth, of which $130.8 million is associated with loan originations in the legacy footprint with the remaining $144.6 million being associated with Centennial CFG.
Non-performing loans at December 31, 2016 are $28.5 million, $34.0 million, $656,000 and zero in the Arkansas, Florida, Alabama and Centennial CFG markets, respectively, for a total of $63.1 million. Non-performing loans as a percent of total loans were 0.85% as of December 31, 2016 compared to 0.96% as of December 31, 2015. Non-performing assets at December 31, 2016 are $41.0 million, $36.8 million, $1.2 million and zero in the Arkansas, Florida and Alabama and Centennial CFG markets, respectively, for a total of $79.1 million. Non-performing assets as a percent of total assets were 0.81% as of December 31, 2016 compared to 0.89% as of December 31, 2015.
The Company’s allowance for loan losses was $80.0 million at December 31, 2016, or 1.08% of total loans, compared to $69.2 million, or 1.04% of total loans, at December 31, 2015. As of December 31, 2016 and 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 2.41% 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 December 31, 2016 and 2015, the Company’s allowance for loan losses was 127% and 109% of its total non-performing loans, respectively.
Stockholders’ equity was $1.32 billion at December 31, 2016 compared to $1.20 billion at December 31, 2015, an increase of $125.1 million. Book value per common share was $9.43 at December 31, 2016 compared to $8.55 (split adjusted) at December 31, 2015. Tangible book value per common share was $6.61 at December 31, 2016 compared to $5.71 (split adjusted) at December 31, 2015 for an increase of 15.8%.
Branches
In an effort to achieve efficiencies primarily from our acquisitions, during the fourth quarter the Company closed one branch in Mountain Home, Arkansas. During the first quarter of 2017, the Company has plans to open a branch location in Clearwater, Florida and a loan production office in Los Angeles under the management of Centennial CFG. The Company currently has 76 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, January 19, 2017. We encourage all participants to pre-register for the conference call using the following link: http://dpregister.com/10098283. 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: 10098283, which will be available until January 26, 2017 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) | ||||||||||||||||||||
| Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
| (In thousands) | 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 123,758 | $ | 123,126 | $ | 136,632 | $ | 115,206 | $ | 111,258 | ||||||||||
| Interest-bearing deposits with other banks | 92,891 | 173,034 | 48,762 | 42,866 | 144,565 | |||||||||||||||
| Cash and cash equivalents | 216,649 | 296,160 | 185,394 | 158,072 | 255,823 | |||||||||||||||
| Federal funds sold | 1,550 | 1,850 | 525 | 7,050 | 1,550 | |||||||||||||||
| Investment securities - available-for-sale | 1,072,920 | 1,233,269 | 1,221,778 | 1,207,773 | 1,206,580 | |||||||||||||||
| Investment securities - held-to-maturity | 284,176 | 275,544 | 287,725 | 299,050 | 309,042 | |||||||||||||||
| Loans receivable | 7,387,699 | 7,112,291 | 7,022,156 | 6,852,212 | 6,641,571 | |||||||||||||||
| Allowance for loan losses | (80,002 | ) | (76,370 | ) | (74,341 | ) | (72,306 | ) | (69,224 | ) | ||||||||||
| Loans receivable, net | 7,307,697 | 7,035,921 | 6,947,815 | 6,779,906 | 6,572,347 | |||||||||||||||
| Bank premises and equipment, net | 205,301 | 208,137 | 207,932 | 210,764 | 212,163 | |||||||||||||||
| Foreclosed assets held for sale | 15,951 | 17,053 | 17,778 | 20,202 | 19,140 | |||||||||||||||
| Cash value of life insurance | 86,491 | 86,230 | 85,889 | 85,538 | 85,146 | |||||||||||||||
| Accrued interest receivable | 30,838 | 29,398 | 28,548 | 28,833 | 29,132 | |||||||||||||||
| Deferred tax asset, net | 61,298 | 56,435 | 61,613 | 69,564 | 71,565 | |||||||||||||||
| Goodwill | 377,983 | 377,983 | 377,983 | 377,983 | 377,983 | |||||||||||||||
| Core deposit and other intangibles | 18,311 | 19,073 | 19,835 | 20,597 | 21,443 | |||||||||||||||
| Other assets | 129,300 | 127,185 | 139,311 | 132,119 | 127,208 | |||||||||||||||
| Total assets | $ | 9,808,465 | $ | 9,764,238 | $ | 9,582,126 | $ | 9,397,451 | $ | 9,289,122 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand and non-interest-bearing | $ | 1,695,184 | $ | 1,717,467 | $ | 1,645,472 | $ | 1,562,565 | $ | 1,456,624 | ||||||||||
| Savings and interest-bearing transaction accounts | 3,963,241 | 3,792,229 | 3,678,546 | 3,602,868 | 3,551,684 | |||||||||||||||
| Time deposits | 1,284,002 | 1,330,597 | 1,388,930 | 1,412,086 | 1,430,201 | |||||||||||||||
| Total deposits | 6,942,427 | 6,840,293 | 6,712,948 | 6,577,519 | 6,438,509 | |||||||||||||||
| Federal funds purchased | - | - | - | - | - | |||||||||||||||
| Securities sold under agreements to repurchase | 121,290 | 109,350 | 111,072 | 121,906 | 128,389 | |||||||||||||||
| FHLB and other borrowed funds | 1,305,198 | 1,420,369 | 1,380,889 | 1,336,233 | 1,405,945 | |||||||||||||||
| Accrued interest payable and other liabilities | 53,891 | 37,382 | 51,476 | 73,185 | 55,696 | |||||||||||||||
| Subordinated debentures | 60,826 | 60,826 | 60,826 | 60,826 | 60,826 | |||||||||||||||
| Total liabilities | 8,483,632 | 8,468,220 | 8,317,211 | 8,169,669 | 8,089,365 | |||||||||||||||
| Stockholders' equity | ||||||||||||||||||||
| Common stock | 1,405 | 1,405 | 1,404 | 702 | 701 | |||||||||||||||
| Capital surplus | 867,080 | 866,310 | 863,560 | 862,827 | 867,981 | |||||||||||||||
| Retained earnings | 455,948 | 419,999 | 389,014 | 357,788 | 326,898 | |||||||||||||||
| Accumulated other comprehensive income | 400 | 8,304 | 10,937 | 6,465 | 4,177 | |||||||||||||||
| Total stockholders' equity | 1,324,833 | 1,296,018 | 1,264,915 | 1,227,782 | 1,199,757 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 9,808,465 | $ | 9,764,238 | $ | 9,582,126 | $ | 9,397,451 | $ | 9,289,122 | ||||||||||
| Home BancShares, Inc. | ||||||||||||||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| Quarter Ended | Year Ended | |||||||||||||||||||||||||||
| Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| (In thousands) | 2016 | 2016 | 2016 | 2015 | 2015 | 2016 | 2015 | |||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||||
| Loans | $ | 103,113 | $ | 102,953 | $ | 100,415 | $ | 96,913 | $ | 97,772 | $ | 403,394 | $ | 344,290 | ||||||||||||||
| Investment securities | ||||||||||||||||||||||||||||
| Taxable | 5,068 | 5,583 | 5,145 | 5,450 | 5,865 | 21,246 | 21,695 | |||||||||||||||||||||
| Tax-exempt | 3,059 | 2,720 | 2,823 | 2,815 | 2,879 | 11,417 | 11,194 | |||||||||||||||||||||
| Deposits - other banks | 146 | 117 | 106 | 102 | 66 | 471 | 233 | |||||||||||||||||||||
| Federal funds sold | 2 | 2 | 1 | 4 | 9 | 9 | 24 | |||||||||||||||||||||
| Total interest income | 111,388 | 111,375 | 108,490 | 105,284 | 106,591 | 436,537 | 377,436 | |||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||
| Interest on deposits | 4,398 | 4,040 | 3,854 | 3,634 | 3,357 | 15,926 | 12,971 | |||||||||||||||||||||
| Federal funds purchased | - | - | 1 | 1 | 1 | 2 | 4 | |||||||||||||||||||||
| FHLB borrowed funds | 3,201 | 3,139 | 3,074 | 3,070 | 2,641 | 12,484 | 6,774 | |||||||||||||||||||||
| Securities sold under agreements to repurchase | 153 | 142 | 134 | 145 | 140 | 574 | 621 | |||||||||||||||||||||
| Subordinated debentures | 429 | 401 | 386 | 377 | 351 | 1,593 | 1,354 | |||||||||||||||||||||
| Total interest expense | 8,181 | 7,722 | 7,449 | 7,227 | 6,490 | 30,579 | 21,724 | |||||||||||||||||||||
| Net interest income | 103,207 | 103,653 | 101,041 | 98,057 | 100,101 | 405,958 | 355,712 | |||||||||||||||||||||
| Provision for loan losses | 1,703 | 5,536 | 5,692 | 5,677 | 8,890 | 18,608 | 25,164 | |||||||||||||||||||||
| Net interest income after | ||||||||||||||||||||||||||||
| provision for loan losses | 101,504 | 98,117 | 95,349 | 92,380 | 91,211 | 387,350 | 330,548 | |||||||||||||||||||||
| Non-interest income | ||||||||||||||||||||||||||||
| Service charges on deposit accounts | 6,442 | 6,527 | 6,151 | 5,929 | 6,528 | 25,049 | 24,252 | |||||||||||||||||||||
| Other service charges and fees | 7,611 | 7,504 | 7,968 | 7,117 | 6,827 | 30,200 | 26,186 | |||||||||||||||||||||
| Trust fees | 329 | 365 | 359 | 404 | 365 | 1,457 | 2,381 | |||||||||||||||||||||
| Mortgage lending income | 4,123 | 3,932 | 3,481 | 2,863 | 2,404 | 14,399 | 10,423 | |||||||||||||||||||||
| Insurance commissions | 488 | 534 | 617 | 657 | 513 | 2,296 | 2,268 | |||||||||||||||||||||
| Increase in cash value of life insurance | 320 | 344 | 353 | 395 | 328 | 1,412 | 1,199 | |||||||||||||||||||||
| Dividends from FHLB, FRB, Bankers' bank & other | 944 | 808 | 719 | 620 | 431 | 3,091 | 1,698 | |||||||||||||||||||||
| Gain on acquisitions | - | - | - | - | - | - | 1,635 | |||||||||||||||||||||
| Gain on sale of SBA loans | 645 | 364 | 79 | - | 390 | 1,088 | 541 | |||||||||||||||||||||
| Gain (loss) on sale of branches, equipment and other assets, net | (1 | ) | (86 | ) | 840 | (53 | ) | 23 | 700 | (214 | ) | |||||||||||||||||
| Gain (loss) on OREO, net | 159 | 132 | (941 | ) | 96 | (507 | ) | (554 | ) | (317 | ) | |||||||||||||||||
| Gain (loss) on securities, net | 644 | - | 15 | 10 | - | 669 | 4 | |||||||||||||||||||||
| FDIC indemnification accretion/(amortization), net | - | - | (410 | ) | (362 | ) | (1,239 | ) | (772 | ) | (9,391 | ) | ||||||||||||||||
| Other income | 2,124 | 1,590 | 2,541 | 1,761 | 1,193 | 8,016 | 4,833 | |||||||||||||||||||||
| Total non-interest income | 23,828 | 22,014 | 21,772 | 19,437 | 17,256 | 87,051 | 65,498 | |||||||||||||||||||||
| Non-interest expense | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 26,944 | 25,623 | 25,437 | 23,958 | 23,841 | 101,962 | 87,512 | |||||||||||||||||||||
| Occupancy and equipment | 6,281 | 6,668 | 6,509 | 6,671 | 6,700 | 26,129 | 25,967 | |||||||||||||||||||||
| Data processing expense | 2,278 | 2,791 | 2,766 | 2,664 | 2,673 | 10,499 | 10,774 | |||||||||||||||||||||
| Other operating expenses | 11,991 | 15,944 | 12,875 | 12,355 | 15,785 | 53,165 | 53,302 | |||||||||||||||||||||
| Total non-interest expense | 47,494 | 51,026 | 47,587 | 45,648 | 48,999 | 191,755 | 177,555 | |||||||||||||||||||||
| Income before income taxes | 77,838 | 69,105 | 69,534 | 66,169 | 59,468 | 282,646 | 218,491 | |||||||||||||||||||||
| Income tax expense | 29,248 | 25,485 | 26,025 | 24,742 | 22,035 | 105,500 | 80,292 | |||||||||||||||||||||
| Net income | $ | 48,590 | $ | 43,620 | $ | 43,509 | $ | 41,427 | $ | 37,433 | $ | 177,146 | $ | 138,199 | ||||||||||||||
| Home BancShares, Inc. | ||||||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| Quarter Ended | Year Ended | |||||||||||||||||||||||||||
| (Dollars and shares in thousands, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||||
| except per share data) | 2016 | 2016 | 2016 | 2015 | 2015 | 2016 | 2015 | |||||||||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||||||||||
| Diluted earnings per common share | $ | 0.35 | $ | 0.31 | $ | 0.31 | $ | 0.29 | $ | 0.27 | $ | 1.26 | $ | 1.01 | ||||||||||||||
| Diluted earnings per common share excluding merger expenses & FDIC loss share buy-out expense | 0.35 | 0.33 | 0.31 | 0.29 | 0.28 | 1.28 | 1.03 | |||||||||||||||||||||
| Diluted earnings per common share excluding intangible amortization | 0.35 | 0.31 | 0.31 | 0.30 | 0.27 | 1.27 | 1.03 | |||||||||||||||||||||
| Basic earnings per common share | 0.35 | 0.31 | 0.31 | 0.30 | 0.27 | 1.26 | 1.01 | |||||||||||||||||||||
| Dividends per share - common | 0.0900 | 0.0900 | 0.0875 | 0.0750 | 0.0750 | 0.3425 | 0.2750 | |||||||||||||||||||||
| Book value per common share | 9.43 | 9.22 | 9.01 | 8.75 | 8.55 | 9.43 | 8.55 | |||||||||||||||||||||
| Tangible book value per common share | 6.61 | 6.40 | 6.18 | 5.91 | 5.71 | 6.61 | 5.71 | |||||||||||||||||||||
| STOCK INFORMATION | ||||||||||||||||||||||||||||
| Average common shares outstanding | 140,465 | 140,436 | 140,382 | 140,390 | 140,234 | 140,418 | 136,615 | |||||||||||||||||||||
| Average diluted shares outstanding | 140,781 | 140,703 | 140,608 | 140,687 | 140,617 | 140,713 | 137,130 | |||||||||||||||||||||
| End of period common shares outstanding | 140,472 | 140,490 | 140,382 | 140,380 | 140,241 | 140,472 | 140,241 | |||||||||||||||||||||
| ANNUALIZED PERFORMANCE METRICS | ||||||||||||||||||||||||||||
| Return on average assets | 1.98 | % | 1.81 | % | 1.83 | % | 1.79 | % | 1.62 | % | 1.85 | % | 1.68 | % | ||||||||||||||
| Return on average assets excluding intangible amortization | 2.08 | % | 1.91 | % | 1.93 | % | 1.89 | % | 1.72 | % | 1.95 | % | 1.79 | % | ||||||||||||||
| 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) | 3.42 | % | 3.43 | % | 3.33 | % | 3.27 | % | 3.27 | % | 3.37 | % | 3.20 | % | ||||||||||||||
| Return on average common equity | 14.79 | % | 13.62 | % | 14.11 | % | 13.77 | % | 12.53 | % | 14.08 | % | 12.77 | % | ||||||||||||||
| Return on average tangible common equity excluding intangible amortization | 21.45 | % | 20.01 | % | 21.01 | % | 20.79 | % | 19.07 | % | 20.82 | % | 19.37 | % | ||||||||||||||
| Efficiency ratio | 36.19 | % | 39.41 | % | 37.52 | % | 37.50 | % | 40.32 | % | 37.65 | % | 40.44 | % | ||||||||||||||
| Core efficiency ratio | 35.97 | % | 36.51 | % | 36.84 | % | 36.92 | % | 37.86 | % | 36.55 | % | 39.48 | % | ||||||||||||||
| Net interest margin - FTE | 4.75 | % | 4.86 | % | 4.83 | % | 4.81 | % | 4.95 | % | 4.81 | % | 4.98 | % | ||||||||||||||
| Fully taxable equivalent adjustment | $ | 2,108 | $ | 1,869 | $ | 1,974 | $ | 1,973 | $ | 2,025 | $ | 7,924 | $ | 7,710 | ||||||||||||||
| Total revenue | 135,216 | 133,389 | 130,262 | 124,721 | 123,847 | 523,588 | 442,934 | |||||||||||||||||||||
| EARNINGS EXCLUDING | ||||||||||||||||||||||||||||
| INTANGIBLE AMORTIZATION | ||||||||||||||||||||||||||||
| GAAP net income available to common shareholders | $ | 48,590 | $ | 43,620 | $ | 43,509 | $ | 41,427 | $ | 37,433 | $ | 177,146 | $ | 138,199 | ||||||||||||||
| Intangible amortization after-tax | 463 | 463 | 463 | 514 | 524 | 1,903 | 2,479 | |||||||||||||||||||||
| Earnings excluding intangible amortization | $ | 49,053 | $ | 44,083 | $ | 43,972 | $ | 41,941 | $ | 37,957 | $ | 179,049 | $ | 140,678 | ||||||||||||||
| GAAP diluted earnings per share | $ | 0.35 | $ | 0.31 | $ | 0.31 | $ | 0.29 | $ | 0.27 | $ | 1.26 | $ | 1.01 | ||||||||||||||
| Intangible amortization after-tax | - | - | - | 0.01 | - | 0.01 | 0.02 | |||||||||||||||||||||
| Diluted earnings per share excluding intangible amortization | $ | 0.35 | $ | 0.31 | $ | 0.31 | $ | 0.30 | $ | 0.27 | $ | 1.27 | $ | 1.03 | ||||||||||||||
| OTHER OPERATING EXPENSES | ||||||||||||||||||||||||||||
| Advertising | $ | 910 | $ | 866 | $ | 733 | $ | 823 | $ | 644 | $ | 3,332 | $ | 2,986 | ||||||||||||||
| Merger and acquisition expenses | 433 | - | - | - | 2,909 | 433 | 4,800 | |||||||||||||||||||||
| FDIC loss share buy-out expense | - | 3,849 | - | - | - | 3,849 | - | |||||||||||||||||||||
| Amortization of intangibles | 762 | 762 | 763 | 845 | 862 | 3,132 | 4,079 | |||||||||||||||||||||
| Electronic banking expense | 1,621 | 1,428 | 1,237 | 1,456 | 1,283 | 5,742 | 5,166 | |||||||||||||||||||||
| Directors' fees | 294 | 292 | 289 | 275 | 262 | 1,150 | 1,071 | |||||||||||||||||||||
| Due from bank service charges | 393 | 319 | 337 | 305 | 304 | 1,354 | 1,096 | |||||||||||||||||||||
| FDIC and state assessment | 1,097 | 1,502 | 1,446 | 1,446 | 1,443 | 5,491 | 5,287 | |||||||||||||||||||||
| Insurance | 563 | 553 | 544 | 533 | 642 | 2,193 | 2,542 | |||||||||||||||||||||
| Legal and accounting | 442 | 583 | 658 | 523 | 537 | 2,206 | 2,028 | |||||||||||||||||||||
| Other professional fees | 943 | 1,137 | 1,044 | 925 | 1,231 | 4,049 | 3,226 | |||||||||||||||||||||
| Operating supplies | 466 | 437 | 419 | 436 | 473 | 1,758 | 1,880 | |||||||||||||||||||||
| Postage | 269 | 269 | 260 | 286 | 299 | 1,084 | 1,196 | |||||||||||||||||||||
| Telephone | 360 | 449 | 455 | 487 | 499 | 1,751 | 1,917 | |||||||||||||||||||||
| Other expense | 3,438 | 3,498 | 4,690 | 4,015 | 4,397 | 15,641 | 16,028 | |||||||||||||||||||||
| Total other operating expenses | $ | 11,991 | $ | 15,944 | $ | 12,875 | $ | 12,355 | $ | 15,785 | $ | 53,165 | $ | 53,302 | ||||||||||||||
| Home BancShares, Inc. | ||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
| (Dollars in thousands) | 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
| BALANCE SHEET RATIOS | ||||||||||||||||||||
| Total loans to total deposits | 106.41 | % | 103.98 | % | 104.61 | % | 104.18 | % | 103.15 | % | ||||||||||
| Common equity to assets | 13.51 | % | 13.27 | % | 13.20 | % | 13.07 | % | 12.92 | % | ||||||||||
| Tangible common equity to tangible assets | 9.87 | % | 9.60 | % | 9.44 | % | 9.21 | % | 9.00 | % | ||||||||||
| LOANS RECEIVABLE | ||||||||||||||||||||
| Real estate | ||||||||||||||||||||
| Commercial real estate loans | ||||||||||||||||||||
| Non-farm/non-residential | $ | 3,153,121 | $ | 2,954,618 | $ | 2,884,162 | $ | 2,889,927 | $ | 2,968,335 | ||||||||||
| Construction/land development | 1,135,843 | 1,065,204 | 1,068,544 | 977,800 | 944,787 | |||||||||||||||
| Agricultural | 77,736 | 77,556 | 78,535 | 75,763 | 75,027 | |||||||||||||||
| Residential real estate loans | ||||||||||||||||||||
| Residential 1-4 family | 1,356,136 | 1,264,384 | 1,262,416 | 1,202,323 | 1,190,279 | |||||||||||||||
| Multifamily residential | 340,926 | 328,089 | 395,352 | 438,100 | 430,256 | |||||||||||||||
| Total real estate | 6,063,762 | 5,689,851 | 5,689,009 | 5,583,913 | 5,608,684 | |||||||||||||||
| Consumer | 41,745 | 42,487 | 48,933 | 50,090 | 52,258 | |||||||||||||||
| Commercial and industrial | 1,123,213 | 1,225,043 | 1,130,776 | 1,070,553 | 850,587 | |||||||||||||||
| Agricultural | 74,673 | 73,413 | 69,666 | 63,482 | 67,109 | |||||||||||||||
| Other | 84,306 | 81,497 | 83,772 | 84,174 | 62,933 | |||||||||||||||
| Loans receivable | $ | 7,387,699 | $ | 7,112,291 | $ | 7,022,156 | $ | 6,852,212 | $ | 6,641,571 | ||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
| Balance, beginning of period | $ | 76,370 | $ | 74,341 | $ | 72,306 | $ | 69,224 | $ | 63,659 | ||||||||||
| Loans charged off | 4,836 | 4,351 | 4,367 | 3,947 | 4,474 | |||||||||||||||
| Recoveries of loans previously charged off | 6,765 | 844 | 710 | 1,352 | 1,149 | |||||||||||||||
| Net loans (recovered)/charged off | (1,929 | ) | 3,507 | 3,657 | 2,595 | 3,325 | ||||||||||||||
| Provision for loan losses | 1,703 | 5,536 | 5,692 | 5,677 | 8,890 | |||||||||||||||
| Balance, end of period | $ | 80,002 | $ | 76,370 | $ | 74,341 | $ | 72,306 | $ | 69,224 | ||||||||||
| Discount for credit losses on purchased loans | 100,148 | 108,017 | 120,910 | 142,223 | 149,394 | |||||||||||||||
| Net (recoveries) charge-offs to average total loans | -0.11 | % | 0.20 | % | 0.21 | % | 0.16 | % | 0.20 | % | ||||||||||
| Allowance for loan losses to total loans | 1.08 | % | 1.07 | % | 1.06 | % | 1.06 | % | 1.04 | % | ||||||||||
| Allowance for loan losses plus discount for credit losses on purchased loans to total loans plus discount for credit losses on purchased loans | 2.41 | % | 2.55 | % | 2.73 | % | 3.07 | % | 3.22 | % | ||||||||||
| NON-PERFORMING ASSETS | ||||||||||||||||||||
| Non-performing loans | ||||||||||||||||||||
| Non-accrual loans | $ | 47,182 | $ | 39,353 | $ | 36,660 | $ | 33,409 | $ | 36,374 | ||||||||||
| Loans past due 90 days or more | 15,942 | 20,737 | 22,998 | 25,144 | 27,137 | |||||||||||||||
| Total non-performing loans | 63,124 | 60,090 | 59,658 | 58,553 | 63,511 | |||||||||||||||
| Other non-performing assets | ||||||||||||||||||||
| Foreclosed assets held for sale, net | 15,951 | 17,053 | 17,778 | 20,202 | 19,140 | |||||||||||||||
| Other non-performing assets | 3 | - | - | - | 38 | |||||||||||||||
| Total other non-performing assets | 15,954 | 17,053 | 17,778 | 20,202 | 19,178 | |||||||||||||||
| Total non-performing assets | $ | 79,078 | $ | 77,143 | $ | 77,436 | $ | 78,755 | $ | 82,689 | ||||||||||
| Allowance for loan losses for loans to non-performing loans | 126.74 | % | 127.09 | % | 124.61 | % | 123.49 | % | 109.00 | % | ||||||||||
| Non-performing loans to total loans | 0.85 | % | 0.84 | % | 0.85 | % | 0.85 | % | 0.96 | % | ||||||||||
| Non-performing assets to total assets | 0.81 | % | 0.79 | % | 0.81 | % | 0.84 | % | 0.89 | % | ||||||||||
| Home BancShares, Inc. | ||||||||||||||||||
| Consolidated Net Interest Margin | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| December 31, 2016 | September 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 | $ | 135,276 | $ | 146 | 0.43 | % | $ | 110,993 | $ | 117 | 0.42 | % | ||||||
| Federal funds sold | 1,374 | 2 | 0.58 | % | 1,136 | 2 | 0.70 | % | ||||||||||
| Investment securities - taxable | 1,121,012 | 5,068 | 1.80 | % | 1,177,284 | 5,583 | 1.89 | % | ||||||||||
| Investment securities - non-taxable - FTE | 349,175 | 4,982 | 5.68 | % | 328,979 | 4,407 | 5.33 | % | ||||||||||
| Loans receivable - FTE | 7,217,631 | 103,298 | 5.69 | % | 7,027,634 | 103,135 | 5.84 | % | ||||||||||
| Total interest-earning assets | 8,824,468 | 113,496 | 5.12 | % | 8,646,026 | 113,244 | 5.21 | % | ||||||||||
| Non-earning assets | 952,680 | 956,337 | ||||||||||||||||
| Total assets | $ | 9,777,148 | $ | 9,602,363 | ||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Liabilities | ||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 3,877,152 | $ | 2,551 | 0.26 | % | $ | 3,721,019 | $ | 2,268 | 0.24 | % | ||||||
| Time deposits | 1,303,182 | 1,847 | 0.56 | % | 1,361,589 | 1,772 | 0.52 | % | ||||||||||
| Total interest-bearing deposits | 5,180,334 | 4,398 | 0.34 | % | 5,082,608 | 4,040 | 0.32 | % | ||||||||||
| Federal funds purchased | 86 | - | 0.00 | % | - | - | 0.00 | % | ||||||||||
| Securities sold under agreement to repurchase | 119,413 | 153 | 0.51 | % | 118,183 | 142 | 0.48 | % | ||||||||||
| FHLB borrowed funds | 1,377,017 | 3,201 | 0.92 | % | 1,357,716 | 3,139 | 0.92 | % | ||||||||||
| Subordinated debentures | 60,826 | 429 | 2.81 | % | 60,826 | 401 | 2.62 | % | ||||||||||
| Total interest-bearing liabilities | 6,737,676 | 8,181 | 0.48 | % | 6,619,333 | 7,722 | 0.46 | % | ||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||
| Non-interest bearing deposits | 1,686,214 | 1,663,621 | ||||||||||||||||
| Other liabilities | 46,687 | 45,332 | ||||||||||||||||
| Total liabilities | 8,470,577 | 8,328,286 | ||||||||||||||||
| Shareholders' equity | 1,306,571 | 1,274,077 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 9,777,148 | $ | 9,602,363 | ||||||||||||||
| Net interest spread | 4.64 | % | 4.75 | % | ||||||||||||||
| Net interest income and margin - FTE | $ | 105,315 | 4.75 | % | $ | 105,522 | 4.86 | % | ||||||||||
| Home BancShares, Inc. | ||||||||||||||||||
| Consolidated Net Interest Margin | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Year Ended | ||||||||||||||||||
| December 31, 2016 | December 31, 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 | $ | 117,022 | $ | 471 | 0.40 | % | $ | 108,315 | $ | 233 | 0.22 | % | ||||||
| Federal funds sold | 1,764 | 9 | 0.51 | % | 9,250 | 24 | 0.26 | % | ||||||||||
| Investment securities - taxable | 1,161,428 | 21,246 | 1.83 | % | 1,114,829 | 21,695 | 1.95 | % | ||||||||||
| Investment securities - non-taxable - FTE | 337,318 | 18,598 | 5.51 | % | 332,048 | 18,309 | 5.51 | % | ||||||||||
| Loans receivable - FTE | 6,986,759 | 404,137 | 5.78 | % | 5,732,315 | 344,885 | 6.02 | % | ||||||||||
| Total interest-earning assets | 8,604,291 | 444,461 | 5.17 | % | 7,296,757 | 385,146 | 5.28 | % | ||||||||||
| Non-earning assets | 964,562 | 914,225 | ||||||||||||||||
| Total assets | $ | 9,568,853 | $ | 8,210,982 | ||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Liabilities | ||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 3,717,880 | $ | 8,978 | 0.24 | % | $ | 3,218,745 | $ | 6,306 | 0.20 | % | ||||||
| Time deposits | 1,362,680 | 6,948 | 0.51 | % | 1,381,562 | 6,665 | 0.48 | % | ||||||||||
| Total interest-bearing deposits | 5,080,560 | 15,926 | 0.31 | % | 4,600,307 | 12,971 | 0.28 | % | ||||||||||
| Federal funds purchased | 255 | 2 | 0.78 | % | 824 | 4 | 0.49 | % | ||||||||||
| Securities sold under agreement to repurchase | 120,576 | 574 | 0.48 | % | 156,513 | 621 | 0.40 | % | ||||||||||
| FHLB borrowed funds | 1,376,364 | 12,484 | 0.91 | % | 902,852 | 6,774 | 0.75 | % | ||||||||||
| Subordinated debentures | 60,826 | 1,593 | 2.62 | % | 60,826 | 1,354 | 2.23 | % | ||||||||||
| Total interest-bearing liabilities | 6,638,581 | 30,579 | 0.46 | % | 5,721,322 | 21,724 | 0.38 | % | ||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||
| Non-interest bearing deposits | 1,619,128 | 1,358,905 | ||||||||||||||||
| Other liabilities | 53,218 | 48,170 | ||||||||||||||||
| Total liabilities | 8,310,927 | 7,128,397 | ||||||||||||||||
| Shareholders' equity | 1,257,926 | 1,082,585 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 9,568,853 | $ | 8,210,982 | ||||||||||||||
| Net interest spread | 4.71 | % | 4.90 | % | ||||||||||||||
| Net interest income and margin - FTE | $ | 413,882 | 4.81 | % | $ | 363,422 | 4.98 | % | ||||||||||
FOR MORE INFORMATION CONTACT:
Jennifer C. Floyd
Chief Accounting Officer &
Investor Relations Officer
Home BancShares, Inc.
(501) 339-2929