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