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

10/20/2016

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

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

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

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

Operating Highlights

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

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

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

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

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

Financial Condition

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

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

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

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

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

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

Branches

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

Conference Call

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

Those without internet access or unable to pre-register may dial in and listen to the live call by calling 1-877-508-9586 and asking for the Home BancShares conference call.  A replay of the call will be available by calling 1-877-344-7529, Passcode: 10092972, which will be available until October 27, 2016 at 10:59 p.m. CT (11:59 ET).  Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com under “Investor Relations” for 12 months.

General

This release contains forward-looking statements regarding the Company's plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand, the ability to successfully integrate new acquisitions and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Home BancShares, Inc.'s financial results is included in its Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2016.

Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, South Alabama and New York City. The Company's common stock is traded through the NASDAQ Global Select Market under the symbol “HOMB.”

 

   
 Home BancShares, Inc.   
 Consolidated End of Period Balance Sheets   
 (Unaudited)   
             
   Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,   
 (In thousands)     2016       2016       2016       2015       2015     
             
ASSETS            
             
Cash and due from banks $   123,126   $   136,632   $   115,206   $   111,258   $   120,262    
Interest-bearing deposits with other banks     173,034       48,762       42,866       144,565       108,394    
Cash and cash equivalents     296,160       185,394       158,072       255,823       228,656    
Federal funds sold     1,850       525       7,050       1,550       -     
Investment securities - available-for-sale     1,233,269       1,221,778       1,207,773       1,206,580       1,141,405    
Investment securities - held-to-maturity     275,544       287,725       299,050       309,042       324,949    
Loans receivable   7,112,291     7,022,156     6,852,212     6,641,571     6,005,589    
Allowance for loan losses   (76,370 )   (74,341 )   (72,306 )   (69,224 )   (63,659 )  
Loans receivable, net     7,035,921       6,947,815       6,779,906       6,572,347       5,941,930    
Bank premises and equipment, net     208,137       207,932       210,764       212,163       205,505    
Foreclosed assets held for sale     17,053       17,778       20,202       19,140       20,816    
Cash value of life insurance     86,230       85,889       85,538       85,146       75,281    
Accrued interest receivable     29,398       28,548       28,833       29,132       26,977    
Deferred tax asset, net     56,435       61,613       69,564       71,565       63,075    
Goodwill     377,983       377,983       377,983       377,983       322,728    
Core deposit and other intangibles     19,073       19,835       20,597       21,443       18,828    
Other assets     127,185       139,311       132,119       127,208       145,403    
Total assets  $   9,764,238   $   9,582,126   $   9,397,451   $   9,289,122   $   8,515,553    
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
             
Liabilities            
Deposits:            
Demand and non-interest-bearing $   1,717,467   $   1,645,472   $   1,562,565   $   1,456,624   $   1,409,949    
Savings and interest-bearing transaction accounts     3,792,229       3,678,546       3,602,868       3,551,684       3,230,722    
Time deposits     1,330,597       1,388,930       1,412,086       1,430,201       1,312,343    
Total deposits     6,840,293       6,712,948       6,577,519       6,438,509       5,953,014    
Federal funds purchased     -        -        -        -        -     
Securities sold under agreements to repurchase     109,350       111,072       121,906       128,389       134,142    
FHLB and other borrowed funds     1,420,369       1,380,889       1,336,233       1,405,945       1,216,152    
Accrued interest payable and other liabilities     37,382       51,476       73,185       55,696       60,141    
Subordinated debentures     60,826       60,826       60,826       60,826       60,826    
Total liabilities      8,468,220       8,317,211       8,169,669       8,089,365       7,424,275    
             
Stockholders' equity             
Common stock     1,405       1,404       702       701       680    
Capital surplus     866,310       863,560       862,827       867,981       782,500    
Retained earnings     419,999       389,014       357,788       326,898       299,984    
Accumulated other comprehensive income     8,304       10,937       6,465       4,177       8,114    
Total stockholders' equity      1,296,018       1,264,915       1,227,782       1,199,757       1,091,278    
Total liabilities and stockholders' equity  $   9,764,238   $   9,582,126   $   9,397,451   $   9,289,122   $   8,515,553    
             

 

 Home BancShares, Inc.   
 Consolidated Statements of Income   
 (Unaudited)   
                   
   Quarter Ended     Nine Months Ended   
   Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,     Sep. 30,   Sep. 30,   
(In thousands)     2016       2016       2015       2015       2015         2016       2015     
                   
Interest income                   
Loans $ 102,953   $ 100,415   $ 96,913   $ 97,772   $ 88,671     $ 300,281   $ 246,518    
Investment securities                  
Taxable   5,583     5,145     5,450     5,865     5,157       16,178     15,830    
Tax-exempt   2,720     2,823     2,815     2,879     2,789       8,358     8,315    
Deposits - other banks   117     106     102     66     32       325     167    
Federal funds sold   2     1     4     9     4       7     15    
                   
Total interest income   111,375     108,490     105,284     106,591     96,653       325,149     270,845    
                   
Interest expense                   
Interest on deposits     4,040       3,854       3,634       3,357       3,045         11,528       9,614    
Federal funds purchased     -        1       1       1       1         2       3    
FHLB borrowed funds   3,139     3,074     3,070     2,641     2,030       9,283     4,133    
Securities sold under agreements to repurchase   142     134     145     140     146       421     481    
Subordinated debentures   401     386     377     351     340       1,164     1,003    
                   
Total interest expense   7,722     7,449     7,227     6,490     5,562       22,398     15,234    
                   
Net interest income    103,653     101,041     98,057     100,101     91,091       302,751     255,611    
Provision for loan losses   5,536     5,692     5,677     8,890     7,106       16,905     16,274    
Net interest income after                   
provision for loan losses    98,117     95,349     92,380     91,211     83,985       285,846     239,337    
                   
Non-interest income                   
Service charges on deposit accounts   6,527     6,151     5,929     6,528     6,250       18,607     17,724    
Other service charges and fees   7,504     7,968     7,117     6,827     6,644       22,589     19,359    
Trust fees   365     359     404     365     398       1,128     2,016    
Mortgage lending income   3,932     3,481     2,863     2,404     3,132       10,276     8,019    
Insurance commissions   534     617     657     513     548       1,808     1,755    
Increase in cash value of life insurance   344     353     395     328     268       1,092     871    
Dividends from FHLB, FRB, Bankers' bank & other     808       719       620       431       433         2,147       1,267    
Gain on acquisitions   -     -     -     -     -       -     1,635    
Gain on sale of SBA loans   364     79     -     390     151       443     151    
Gain (loss) on sale of branches, equipment and other assets, net   (86 )   840     (53 )   23     (266 )     701     (237 )  
Gain (loss) on OREO, net   132     (941 )   96     (507 )   (40 )     (713 )   190    
Gain (loss) on securities, net   -     15     10     -     -       25     4    
FDIC indemnification accretion/(amortization), net   -     (410 )   (362 )   (1,239 )   (1,994 )     (772 )   (8,152 )  
Other income   1,590     2,541     1,761     1,193     1,021       5,892     3,640    
                   
Total non-interest income   22,014     21,772     19,437     17,256     16,545       63,223     48,242    
                   
Non-interest expense                   
Salaries and employee benefits   25,623     25,437     23,958     23,841     22,225       75,018     63,671    
Occupancy and equipment   6,668     6,509     6,671     6,700     6,540       19,848     19,267    
Data processing expense   2,791     2,766     2,664     2,673     2,619       8,221     8,101    
Other operating expenses   15,944     12,875     12,355     15,785     13,209       41,174     37,517    
                   
Total non-interest expense   51,026     47,587     45,648     48,999     44,593       144,261     128,556    
                   
Income before income taxes    69,105     69,534     66,169     59,468     55,937       204,808     159,023    
Income tax expense   25,485     26,025     24,742     22,035     20,196       76,252     58,257    
Net income  $ 43,620   $ 43,509   $ 41,427   $ 37,433   $ 35,741     $ 128,556   $ 100,766    
                   

 

 Home BancShares, Inc.   
 Selected Financial Information   
 (Unaudited)   
                   
   Quarter Ended     Nine Months Ended   
(Dollars and shares in thousands,   Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,     Sep. 30,   Sep. 30,   
except per share data)     2016       2016       2015       2015       2015         2016       2015     
                   
                   
PER SHARE DATA                  
                   
Diluted earnings per common share $ 0.31   $ 0.31   $ 0.29   $ 0.27   $ 0.26     $ 0.91   $ 0.74    
Diluted earnings per common share excluding merger expenses & FDIC loss share buy-out expense   0.33     0.31     0.29     0.28     0.26       0.93     0.75    
Diluted earnings per common share excluding intangible amortization   0.31     0.31     0.30     0.27     0.27       0.92     0.76    
Basic earnings per common share   0.31     0.31     0.30     0.27     0.26       0.92     0.74    
Dividends per share - common   0.0900     0.0875     0.0750     0.0750     0.0750       0.2525     0.2000    
Book value per common share   9.22     9.01     8.75     8.55     8.02       9.22     8.02    
Tangible book value per common share   6.40     6.18     5.91     5.71     5.51       6.40     5.51    
                   
STOCK INFORMATION                  
                   
Average common shares outstanding   140,436     140,382     140,390     140,234     135,738       140,403     135,396    
Average diluted shares outstanding   140,703     140,608     140,687     140,617     136,162       140,685     135,999    
End of period common shares outstanding   140,490     140,382     140,380     140,241     136,001       140,490     136,001    
                   
ANNUALIZED PERFORMANCE METRICS                  
                   
Return on average assets   1.81 %   1.83 %   1.79 %   1.62 %   1.72 %     1.81 %   1.71 %  
Return on average assets excluding intangible amortization   1.91 %   1.93 %   1.89 %   1.72 %   1.83 %     1.91 %   1.82 %  
Return on average assets excluding intangible amortization, provision for loan losses, merger expenses, gain on acquisitions, loss on FDIC loss share buyout and income taxes (Core ROA)   3.43 %   3.33 %   3.27 %   3.27 %   3.24 %     3.35 %   3.17 %  
Return on average common equity   13.62 %   14.11 %   13.77 %   12.53 %   13.23 %     13.83 %   12.86 %  
Return on average tangible common equity excluding intangible amortization   20.01 %   21.01 %   20.79 %   19.07 %   19.76 %     20.59 %   19.49 %  
Efficiency ratio   39.41 %   37.52 %   37.50 %   40.32 %   39.79 %     38.16 %   40.49 %  
Core efficiency ratio   36.51 %   36.84 %   36.92 %   37.86 %   39.30 %     36.75 %   40.11 %  
Net interest margin - FTE   4.86 %   4.83 %   4.81 %   4.95 %   5.03 %     4.83 %   4.99 %  
Fully taxable equivalent adjustment $ 1,869   $ 1,974   $ 1,973   $ 2,025   $ 1,951     $ 5,816   $ 5,685    
Total revenue   133,389     130,262     124,721     123,847     113,198       388,372     319,087    
                   
EARNINGS EXCLUDING                  
INTANGIBLE AMORTIZATION                  
                   
GAAP net income available to common shareholders $ 43,620   $ 43,509   $ 41,427   $ 37,433   $ 35,741     $ 128,556   $ 100,766    
Intangible amortization after-tax   463     463     514     524     600       1,440     1,955    
Earnings excluding intangible amortization $ 44,083   $ 43,972   $ 41,941   $ 37,957   $ 36,341     $ 129,996   $ 102,721    
                   
GAAP diluted earnings per share $ 0.31   $ 0.31   $ 0.29   $ 0.27   $ 0.26     $ 0.91   $ 0.74    
Intangible amortization after-tax   -     -     0.01     -     0.01       0.01     0.02    
Diluted earnings per share excluding intangible amortization $ 0.31   $ 0.31   $ 0.30   $ 0.27   $ 0.27     $ 0.92   $ 0.76    
                   
OTHER OPERATING EXPENSES                  
                   
Advertising $ 866   $ 733   $ 823   $ 644   $ 906     $ 2,422   $ 2,342    
Merger and acquisition expenses   -     -     -     2,909     474       -     1,891    
FDIC loss share buy-out expense     3,849       -        -        -        -          3,849       -     
Amortization of intangibles     762       763       845       862       988         2,370       3,217    
Electronic banking expense     1,428       1,237       1,456       1,283       1,352         4,121       3,883    
Directors' fees     292       289       275       262       233         856       809    
Due from bank service charges     319       337       305       304       291         961       792    
FDIC and state assessment     1,502       1,446       1,446       1,443       1,276         4,394       3,844    
Insurance     553       544       533       642       617         1,630       1,900    
Legal and accounting     583       658       523       537       338         1,764       1,491    
Other professional fees     1,137       1,044       925       1,231       947         3,106       1,995    
Operating supplies     437       419       436       473       464         1,292       1,407    
Postage     269       260       286       299       293         815       897    
Telephone     449       455       487       499       444         1,391       1,418    
Other expense     3,498       4,690       4,015       4,397       4,586         12,203       11,631    
                   
Total other operating expenses $   15,944   $   12,875   $   12,355   $   15,785   $   13,209     $   41,174   $   37,517    
                   

 

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

 

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

 

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

 

FOR MORE INFORMATION CONTACT:

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

Homebancshares Logo

 

Source: Home BancShares, Inc.

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