Home BancShares, Inc. Announces a 28.2% Increase in 2016 Earnings

1/19/2017

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

Home Bancshares Linked Logo

 

Source: Home BancShares, Inc.

< Back to News

Top
Key icon

Bank Owned Real Estate

Browse Centennial Bank's Properties for Sale, or Real Estate Owned List, including but not limited to residential and commercial properties acquired by Centennial Bank, their Affiliates, or as Servicer, through foreclosure.

Search Listings
Sallie Mae logo

Smart Option
Student Loans®

The Centennial Bank Smart Option Student Loan® by Sallie Mae® is an ideal solution to help bridge that gap between federal loans and the cost of your education expenses.

View Student Loans

Community News