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Home BancShares, Inc. Announces Record Quarterly Profit of $27.3 Million
Company Release - 04/17/2014 09:15

CONWAY, Ark., April 17, 2014 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced a record quarterly profit of $27.3 million, or $0.42 diluted earnings per share for the first quarter of 2014 compared to $17.5 million or $0.31 diluted earnings per share for the same quarter in 2013. The Company increased its first quarter earnings by $9.8 million or 55.8% for the three months ended March 31, 2014 compared to the same period of the previous year. Excluding the $849,000 of merger expenses associated with the recently completed acquisition of Liberty Bancshares, Inc. (Liberty), diluted earnings per share for the first quarter of 2014 was $0.43 per share.

Because acquisitions are growth and capital management strategies, earnings excluding amortization of intangibles after-tax are useful in evaluating the Company. Diluted earnings per share excluding intangible amortization for the first quarter of 2014 was $0.43 compared to $0.32 diluted earnings per share excluding intangible amortization (split adjusted) for the same period in 2013.

"The Company has achieved yet another historically record quarter during the first quarter of 2014," said John Allison, Chairman. "During the first quarter, the Company exhibited a notable diluted earnings per share metric of $0.43 per share. Our team continues to be dedicated on working toward recognizing the anticipated cost savings as quickly as possible from last quarter's acquisition of Liberty. I am looking forward to watching our team succeed in this process and pass along the results to our deserving shareholders."

Randy Sims, Chief Executive Officer, added, "We saw our diluted earnings per share and net interest margin improve 11 cents and 33 basis points during the first quarter of 2014 when compared to the prior year first quarter. Our core efficiency ratio also made a significant improvement to 41.39% for the quarter just ended when compared to the 46.39% and 45.22% from the first and fourth quarters of 2013, respectively. Another important item of note for the first quarter of 2014 is a 1.67% return on average assets excluding merger expenses. This ratio demonstrates we are making the necessary earnings improvements to get the acquired Liberty franchise up to our standards. I, for one, am pleased with the continued achievements the Company has realized during the first quarter of 2014."

Operating Highlights

Each quarter we perform credit impairment tests on the loans acquired in our FDIC loss sharing and non-loss sharing acquisitions. During our first quarter 2014 impairment testing, four FDIC loss sharing pools evaluated by the Company were determined to have a material projected credit improvement. As a result of this improvement, the Company will recognize approximately $11.4 million as an adjustment to yield over the weighted average life of the loans ($2.0 million was recognized during the first quarter of 2014). Improvements in credit quality decrease the basis in the related indemnification asset and increase our FDIC true-up liability. This positive event will reduce the indemnification asset by approximately $8.3 million ($2.1 million was recognized for the first quarter of 2014) and increase our FDIC true-up liability by $1.1 million ($71,000 was recognized for the first quarter of 2014). The $8.3 million will be amortized over the weighted average life of the shared-loss agreement. This amortization will be shown as a reduction to FDIC indemnification non-interest income. The $1.1 million will be expensed over the remaining true-up measurement date as other non-interest expense.

Net interest income for the first quarter of 2014 increased 73.6% to $77.0 million from $44.3 million during the first quarter of 2013. For the first quarter of 2014, the effective yield on non-covered loans and covered loans was 6.26% and 16.02%, respectively. Net interest margin, on a fully taxable equivalent basis, was 5.48% for the quarter just ended compared to 5.15% in the first quarter of 2013, an increase of 33 basis points. The pools which have been determined to have material projected credit improvement as a result of the quarterly impairment testing and the acquisition of Liberty have significantly changed the mix and metrics on the net interest margin since December 31, 2012. Although there have been many changes since 2012, the Company continues to remain focused on expanding its net interest margin through opportunities such as improved pricing on interest-bearing deposits.

The Company experienced a $6.9 million increase in the provision for loan losses for non-covered loans during the first quarter of 2014 versus 2013. This expected increase is not an indication of a decline in asset quality but primarily a reflection of the migration of the Liberty loans from purchased loan accounting treatment to originated loan accounting treatment. Based upon current accounting guidance the allowance for loan losses is not carried over in an acquisition.  As a result virtually none of the Liberty footprint loans had any allocation of the allowance for loan losses at year end.  This is the result of all loans acquired on October 24, 2013 from Liberty being recorded at fair value in accordance with the fair value methodology prescribed in ASC Topic 820.  However, as the acquired Liberty loans payoff and the Liberty footprint originates loan productions, it is necessary to establish an allowance which represents an amount that, in management's judgment, will be adequate to absorb credit losses.

The Company reported $12.2 million of non-interest income for the first quarter of 2014, compared to $9.0 million for the first quarter of 2013. The most important components of the first quarter non-interest income were $5.9 million from service charges on deposits accounts, $5.7 million from other service charges and fees, $1.5 million from mortgage lending income, $1.4 million from insurance commissions, $761,000 from other income, $539,000 from gain on sale of OREO and $436,000 from trust fees offset by the $4.7 million of net amortization on the FDIC indemnification asset.  

Non-interest expense for the first quarter of 2014 was $39.4 million compared to $25.9 million for the first quarter of 2013. These increases are primarily associated with the acquisition of Liberty during the fourth quarter of 2013.    For the first quarter of 2014, our core efficiency ratio was 41.39% which is improved from the 46.39% reported for first quarter of 2013. As a result of the integration of Liberty during the fourth quarter of 2013, the Company anticipates it will be able to continue achieving cost savings during 2014.

Financial Condition

Total non-covered loans were $4.13 billion at March 31, 2014 compared to $4.19 billion at December 31, 2013. Total covered loans were $270.6 million at March 31, 2014 compared to $282.5 million at December 31, 2013.  Total deposits were $5.34 billion at March 31, 2014 compared to $5.39 billion at December 31, 2013.  Total assets were $6.78 billion at March 31, 2014 compared to $6.81 billion at December 31, 2013.

Non-performing non-covered loans were $42.7 million as of March 31, 2014, of which $20.4 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 1.03% as of March 31, 2014 compared to 0.91% as of December 31, 2013.  Non-performing non-covered assets were $66.2 million as of March 31, 2014, of which $24.7 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 1.03% as of March 31, 2014 compared to 1.07% as of December 31, 2013. 

The Company's allowance for loan losses for non-covered loans was $44.0 million at March 31, 2014, or 1.07% of total non-covered loans, compared to $39.0 million, or 0.93% of total non-covered loans, at December 31, 2013. As of March 31, 2014 and December 31, 2013, the allowance for loan losses for non-covered loans plus discount for credit losses on non-covered loans acquired to total non-covered loans plus discount for credit losses on non-covered loans acquired was 4.86% and 4.89%, respectively. As of March 31, 2014 and December 31, 2013, the Company's allowance for loan losses for non-covered loans was 103% and 102% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $868.9 million at March 31, 2014 compared to $841.0 million at December 31, 2013, an increase of $27.9 million. Book value per common share was $13.34 at March 31, 2014 compared to $12.92 at December 31, 2013.  Tangible book value per common share was $8.38 at March 31, 2014 compared to $7.94 December 31, 2013.  

Branches

During the first quarter of 2014, the Company closed one branch in Panacea, Florida. The Company currently has no plans for additional de novo branch locations. In an effort to achieve efficiencies primarily from the recent acquisitions, the Company plans to close or merge four Arkansas and two Florida locations during the second quarter of 2014. The Company currently has 88 branches in Arkansas, 52 branches in Florida and 7 branches in Alabama.

Conference Call

Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, April 17, 2014. Interested parties can listen to this call by calling 1-888-317-6016 and asking for the Home BancShares conference call.  A replay of the call will be available by calling 1-877-344-7529, Passcode: 10042673, which will be available until April 25, 2014 at 8:00 a.m. CT (9:00 ET).  Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com under "Investor Relations" for 12 months.

General

This release contains forward-looking statements regarding the Company's plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand, the ability to successfully integrate new acquisitions and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Home BancShares, Inc.'s financial results is included in its Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission.

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

 Home BancShares, Inc. 
 Consolidated End of Period Balance Sheets 
 (Unaudited) 
           
   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, 
 (In thousands)   2014   2013   2013   2013   2013 
           
ASSETS          
           
Cash and due from banks   $ 124,662  $ 104,005  $ 77,261  $ 75,148  $ 95,604
Interest-bearing deposits with other banks   89,897  61,529  35,080  97,576  206,753
Cash and cash equivalents   214,559  165,534  112,341  172,724  302,357
Federal funds sold   22,925  4,275  10,700  2,475  2,850
Investment securities - available-for-sale   1,175,827  1,175,484  839,560  736,406  724,929
Investment securities - held-to-maturity   132,363  114,621  9,528  --   -- 
Loans receivable not covered by loss share   4,126,564  4,194,437  2,378,838  2,339,242  2,309,146
Loans receivable covered by FDIC loss share   270,641  282,516  308,072  329,802  358,669
Allowance for loan losses   (48,991)  (43,815)  (38,748)  (41,450)  (45,935)
Loans receivable, net   4,348,214  4,433,138  2,648,162  2,627,594  2,621,880
Bank premises and equipment, net   196,392  197,224  119,637  119,737  117,534
Foreclosed assets held for sale not covered by loss share   23,484  29,869  14,158  15,985  18,861
Foreclosed assets held for sale covered by FDIC loss share   20,201  20,999  24,320  27,073  29,928
FDIC indemnification asset   73,348  89,611  101,192  116,071  126,275
Cash value of life insurance   63,787  63,501  59,602  59,401  59,185
Accrued interest receivable   21,865  22,944  14,275  14,424  14,367
Deferred tax asset, net   82,886  89,412  46,045  46,655  40,907
Goodwill   301,736  301,736  85,681  85,681  85,681
Core deposit and other intangibles   21,131  22,298  9,655  10,457  11,259
Other assets   82,058  81,215  66,450  56,654  69,494
Total assets   $ 6,780,776  $ 6,811,861  $ 4,161,306  $ 4,091,337  $ 4,225,507
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
Liabilities          
Deposits:           
Demand and non-interest-bearing   $ 1,057,148  $ 991,161  $ 757,328  $ 733,374  $ 717,830
Savings and interest-bearing transaction accounts   2,827,787  2,792,423  1,683,010  1,735,280  1,810,957
Time deposits   1,453,575  1,609,462  808,480  856,581  936,649
Total deposits   5,338,510  5,393,046  3,248,818  3,325,235  3,465,436
Federal funds purchased   --   --   --   --   -- 
Securities sold under agreements to repurchase   137,524  160,984  71,307  73,461  77,194
FHLB borrowed funds   354,935  350,661  270,232  130,251  130,369
Accrued interest payable and other liabilities   20,113  5,389  22,714  25,787  21,020
Subordinated debentures   60,826  60,826  3,093  3,093  3,093
Total liabilities   5,911,908  5,970,906  3,616,164  3,557,827  3,697,112
           
Stockholders' equity           
Common stock   651  651  563  562  281
Capital surplus   708,868  708,058  417,627  416,795  416,741
Retained earnings   158,838  136,386  128,316  114,172  100,730
Accumulated other comprehensive income (loss)   511  (4,140)  (1,364)  1,981  10,643
Total stockholders' equity   868,868  840,955  545,142  533,510  528,395
Total liabilities and stockholders' equity   $ 6,780,776  $ 6,811,861  $ 4,161,306  $ 4,091,337  $ 4,225,507
           
 Home BancShares, Inc. 
 Consolidated Statements of Income 
 (Unaudited) 
               
   Quarter Ended   Three Months Ended 
   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,   Mar. 31,   Mar. 31, 
 (In thousands)   2014   2013   2013   2013   2013   2014   2013 
               
               
Interest income               
Loans   $ 75,013  $ 65,338  $ 45,003  $ 44,036  $ 44,159  $ 75,013  $ 44,159
Investment securities               
Taxable   4,470  4,760  2,645  2,490  2,403  4,470  2,403
Tax-exempt   2,317  1,554  1,507  1,467  1,481  2,317  1,481
Deposits - other banks   24  51  19  86  98  24  98
Federal funds sold   16  14  2  6  7  16  7
               
Total interest income   81,840  71,717  49,176  48,085  48,148  81,840  48,148
               
Interest expense               
Interest on deposits   3,384  3,320  1,810  2,129  2,485  3,384  2,485
Federal funds purchased   --   1  3  --   --   --   -- 
FHLB borrowed funds   946  915  910  1,012  1,004  946  1,004
Securities sold under agreements to repurchase   182  171  87  86  80  182  80
Subordinated debentures   328  255  16  17  230  328  230
               
Total interest expense   4,840  4,662  2,826  3,244  3,799  4,840  3,799
               
Net interest income   77,000  67,055  46,350  44,841  44,349  77,000  44,349
Provision for loan losses   6,938  4,330  --   850  --   6,938  -- 
Net interest income after provision for loan losses   70,062  62,725  46,350  43,991  44,349  70,062  44,349
               
Non-interest income               
Service charges on deposit accounts   5,911  6,001  4,072  4,088  3,709  5,911  3,709
Other service charges and fees   5,686  5,146  3,671  3,479  3,437  5,686  3,437
Trust fees   436  284  15  17  19  436  19
Mortgage lending income   1,513  1,470  1,527  1,619  1,372  1,513  1,372
Insurance commissions   1,416  778  519  444  679  1,416  679
Income from title services   50  122  156  136  109  50  109
Increase in cash value of life insurance   288  235  203  218  180  288  180
Dividends from FHLB, FRB, Bankers' bank & other   316  273  179  401  175  316  175
Gain on sale of SBA loans   --   --   79  --   56  --   56
Gain (loss) on sale of premises & equipment, net   9  (315)  303  394  15  9  15
Gain (loss) on OREO, net   539  347  777  441  86  539  86
Gain (loss) on securities, net   --   --   --   111  --   --   -- 
FDIC indemnification accretion/(amortization), net   (4,744)  (2,949)  (3,177)  (2,283)  (1,992)  (4,744)  (1,992)
Other income   761  825  994  740  1,180  761  1,180
               
Total non-interest income   12,181  12,217  9,318  9,805  9,025  12,181  9,025
               
Non-interest expense               
Salaries and employee benefits   18,933  19,504  12,981  12,957  12,952  18,933  12,952
Occupancy and equipment   6,226  5,670  4,010  3,894  3,594  6,226  3,594
Data processing expense   1,793  1,538  1,114  1,231  1,510  1,793  1,510
Other operating expenses   12,405  28,162  8,610  7,773  7,807  12,405  7,807
               
Total non-interest expense   39,357  54,874  26,715  25,855  25,863  39,357  25,863
               
Income before income taxes   42,886  20,068  28,953  27,941  27,511  42,886  27,511
Income tax expense   15,549  7,118  10,590  10,282  9,963  15,549  9,963
Net income   $ 27,337  $ 12,950  $ 18,363  $ 17,659  $ 17,548  $ 27,337  $ 17,548
               
 Home BancShares, Inc. 
 Selected Financial Information 
 (Unaudited) 
               
   Quarter Ended   Three Months Ended 
 (Dollars and shares in thousands,   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,   Mar. 31,   Mar. 31, 
 except per share data)   2014   2013   2013   2013   2013   2014   2013 
               
               
PER SHARE DATA              
               
Diluted earnings per common share   $ 0.42  $ 0.19  $ 0.33  $ 0.31  $ 0.31  $ 0.42  $ 0.31
Diluted earnings per common share excluding intangible amortization   0.43  0.21  0.33  0.32  0.32  0.43  0.32
Basic earnings per common share   0.42  0.19  0.33  0.32  0.31  0.42  0.31
Dividends per share - common   0.075  0.075  0.075  0.075  0.065  0.075  0.065
Book value per common share   13.34  12.92  9.69  9.49  9.40  13.34  9.40
Tangible book value per common share   8.38  7.94  7.99  7.78  7.67  8.38  7.67
               
STOCK INFORMATION              
               
Average common shares outstanding   65,123  62,865  56,256  56,234  56,222  65,123  56,222
Average diluted shares outstanding   65,511  63,234  56,620  56,577  56,535  65,511  56,535
End of period common shares outstanding   65,135  65,082  56,278  56,243  56,229  65,135  56,229
               
ANNUALIZED PERFORMANCE METRICS              
               
Return on average assets  1.64% 0.83% 1.80% 1.71% 1.70% 1.64% 1.70%
Return on average assets excluding intangible amortization  1.77% 0.91% 1.89% 1.80% 1.79% 1.77% 1.79%
Return on average assets excluding intangible amortization, provision for loan losses, merger expenses, bargain purchase gain, gain on life insurance proceeds and income taxes (Core ROA)  3.26% 2.86% 3.09% 2.93% 2.77% 3.26% 2.77%
Return on average common equity  13.00% 6.68% 13.63% 13.27% 13.68% 13.00% 13.68%
Return on average tangible common equity excluding intangible amortization  21.48% 10.83% 17.04% 16.65% 17.29% 21.48% 17.29%
Efficiency ratio  42.07% 66.73% 45.67% 44.98% 46.03% 42.07% 46.03%
Core efficiency ratio  41.39% 45.22% 44.76% 45.76% 46.39% 41.39% 46.39%
Net interest margin - FTE  5.48% 5.09% 5.41% 5.18% 5.15% 5.48% 5.15%
Fully taxable equivalent adjustment   $ 1,591  $ 1,133  $ 1,073  $ 1,051  $ 1,075  $ 1,591  $ 1,075
Total revenue   94,021  83,934  58,494  57,890  57,173  94,021  57,173
               
EARNINGS EXCLUDING              
INTANGIBLE AMORTIZATION              
               
GAAP net income available to common shareholders   $ 27,337  $ 12,950  $ 18,363  $ 17,659  $ 17,548  $ 27,337  $ 17,548
Intangible amortization after-tax   709  740  487  488  487  709  487
Earnings excluding intangible amortization   $ 28,046  $ 13,690  $ 18,850  $ 18,147  $ 18,035  $ 28,046  $ 18,035
               
GAAP diluted earnings per share   $ 0.42  $ 0.19  $ 0.33  $ 0.31  $ 0.31  $ 0.42  $ 0.31
Intangible amortization after-tax   0.01  0.02  --   0.01  0.01  0.01  0.01
Diluted earnings per share excluding intangible amortization   $ 0.43  $ 0.21  $ 0.33  $ 0.32  $ 0.32  $ 0.43  $ 0.32
               
OTHER OPERATING EXPENSES              
               
Advertising   $ 522  $ 653  $ 363  $ 120  $ 693  $ 522  $ 693
Merger and acquisition expenses   849  17,315  1,034  1  28  849  28
 Amortization of intangibles   1,167  1,218  802  802  802  1,167  802
Electronic banking expense   1,338  1,458  926  960  863  1,338  863
Directors' fees   227  179  188  210  190  227  190
Due from bank service charges   199  179  136  168  133  199  133
FDIC and state assessment   1,114  858  684  677  630  1,114  630
Insurance   614  756  572  555  566  614  566
Legal and accounting   417  450  227  394  322  417  322
Other professional fees   507  561  404  490  473  507  473
Operating supplies   472  455  309  332  343  472  343
Postage   352  295  212  231  207  352  207
Telephone   454  375  291  291  303  454  303
Other expense   4,173  3,410  2,462  2,542  2,254  4,173  2,254
               
Total other operating expenses   $ 12,405  $ 28,162  $ 8,610  $ 7,773  $ 7,807  $ 12,405  $ 7,807
               
 Home BancShares, Inc. 
 Selected Financial Information 
 (Unaudited) 
           
   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, 
 (Dollars in thousands)   2014   2013   2013   2013   2013 
           
BALANCE SHEET RATIOS          
           
Total loans to total deposits  82.37% 83.01% 82.70% 80.27% 76.98%
Common equity to assets  12.8% 12.3% 13.1% 13.0% 12.5%
Tangible common equity to tangible assets  8.5% 8.0% 11.1% 10.9% 10.5%
           
ALLOWANCE FOR LOAN LOSSES          
           
 Non-Covered           
Balance, beginning of period   $ 39,022  $ 37,642  $ 40,498  $ 42,302  $ 45,170
Loans charged off   2,424  2,417  5,101  3,361  3,318
Recoveries of loans previously charged off   488  358  2,245  807  450
Net loans charged off   1,936  2,059  2,856  2,554  2,868
Provision for loan losses   6,938  3,439  --   750  -- 
Balance, end of period   $ 44,024  $ 39,022  $ 37,642  $ 40,498  $ 42,302
           
Discount for credit losses on non-covered loans acquired   164,324  174,637  77,413  80,322  80,305
Net charge-offs on loans not covered by loss share to average non-covered loans  0.19% 0.22% 0.48% 0.44% 0.50%
Allowance for loan losses for non-covered loans to total non-covered loans  1.07% 0.93% 1.58% 1.73% 1.83%
Allowance for loan losses for non-covered loans plus discount for credit losses on non-covered loans
acquired to total non-covered loans plus discount for credit losses on non-covered loans acquired 
4.86% 4.89% 4.68% 4.99% 5.13%
           
Covered          
Balance, beginning of period   $ 4,793  $ 1,106  $ 952  $ 3,633  $ 5,462
Loans charged off   --   287  --   3,187  1,840
Recoveries of loans previously charged off   174  29  154  6  11
Net loans charged off/(recovered)   (174)  258  (154)  3,181  1,829
Provision for loan losses before benefit attributable to FDIC loss share agreements   --   3,945  --   500  -- 
Benefit attributable to FDIC loss share agreements   --   (3,054)  --   (400)  -- 
Net provision for loan losses   --   891  --   100  -- 
Increase in FDIC indemnificaton asset   --   3,054  --   400  -- 
Balance, end of period   $ 4,967  $ 4,793  $ 1,106  $ 952  $ 3,633
           
Total allowance for loan losses   $ 48,991  $ 43,815  $ 38,748  $ 41,450  $ 45,935
           
NON-PERFORMING ASSETS          
NOT COVERED BY LOSS SHARE          
           
Non-performing non-covered loans           
Non-accrual non-covered loans   $ 20,697  $ 15,133  $ 17,187  $ 17,798  $ 19,078
Non-covered loans past due 90 days or more   21,981  23,141  11,248  11,514  6,692
Total non-performing non-covered loans   42,678  38,274  28,435  29,312  25,770
Other non-performing non-covered assets           
Non-covered foreclosed assets held for sale, net   23,484  29,869  14,158  15,985  18,861
Other non-performing non-covered assets   47  281  185  172  285
Total other non-performing non-covered assets   23,531  30,150  14,343  16,157  19,146
Total non-performing non-covered assets   $ 66,209  $ 68,424  $ 42,778  $ 45,469  $ 44,916
           
Allowance for loan losses for non-covered loans to non-performing non-covered loans  103.15% 101.95% 132.38% 138.16% 164.15%
Non-performing non-covered loans to total non-covered loans  1.03% 0.91% 1.20% 1.25% 1.12%
Non-performing non-covered assets to total non-covered assets  1.03% 1.07% 1.15% 1.26% 1.21%
           
 Home BancShares, Inc. 
 Loan Information 
 (Unaudited) 
           
   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, 
 (Dollars in thousands)   2014   2013   2013   2013   2013 
           
           
LOANS NOT COVERED BY LOSS SHARE          
           
 Real estate           
 Commercial real estate loans           
 Non-farm/non-residential   $ 1,722,910  $ 1,739,668  $ 1,026,937  $ 1,003,391  $ 1,014,301
 Construction/land development   566,205  562,667  314,232  281,994  254,673
 Agricultural   74,775  81,618  31,906  31,119  34,288
 Residential real estate loans           
 Residential 1-4 family   890,981  913,332  529,732  528,260  531,698
 Multifamily residential   206,348  213,232  117,639  120,899  122,998
 Total real estate   3,461,219  3,510,517  2,020,446  1,965,663  1,957,958
 Consumer   60,735  69,570  30,478  32,671  33,823
 Commercial and industrial   491,525  511,421  268,900  287,351  269,463
 Agricultural   44,017  37,129  30,612  26,462  16,573
 Other   69,068  65,800  28,402  27,095  31,329
 Loans receivable not covered by loss share   $ 4,126,564  $ 4,194,437  $ 2,378,838  $ 2,339,242  $ 2,309,146
           
           
           
LOANS COVERED BY LOSS SHARE          
           
 Real estate           
 Commercial real estate loans           
 Non-farm/non-residential   $ 113,593  $ 117,164  $ 134,843  $ 143,922  $ 155,345
 Construction/land development   45,381  48,388  51,492  56,447  58,384
 Agricultural   1,184  1,232  1,253  1,784  2,256
 Residential real estate loans           
 Residential 1-4 family   92,918  98,403  102,673  107,612  120,246
 Multifamily residential   10,043  10,378  10,525  10,644  9,443
 Total real estate   263,119  275,565  300,786  320,409  345,674
 Consumer   16  20  17  20  28
 Commercial and industrial   6,440  5,852  6,291  8,193  11,712
 Agricultural   --   --   --   --   -- 
 Other   1,066  1,079  978  1,180  1,255
 Loans receivable covered by loss share   $ 270,641  $ 282,516  $ 308,072  $ 329,802  $ 358,669
           
 Home BancShares, Inc. 
 Consolidated Net Interest Margin 
 (Unaudited) 
               
   Three Months Ended 
   March 31, 2014     December 31, 2013 
   Average   Income/   Yield/     Average   Income/   Yield/ 
 (Dollars in thousands)   Balance   Expense   Rate     Balance   Expense   Rate 
               
               
ASSETS              
 Earning assets               
 Interest-bearing balances due from banks   $ 63,018  $ 24 0.15%    $ 85,360  $ 51 0.24%
 Federal funds sold   31,482  16 0.21%    24,180  14 0.23%
 Investment securities - taxable   1,005,313  4,470 1.80%    944,786  4,760 2.00%
 Investment securities - non-taxable - FTE   286,328  3,789 5.37%    270,606  2,539 3.72%
 Loans receivable - FTE   4,427,994  75,132 6.88%    3,994,744  65,486 6.50%
 Total interest-earning assets   5,814,135  83,431 5.82%    5,319,676  72,850 5.43%
 Non-earning assets   952,470        894,828    
 Total assets   $ 6,766,605        $ 6,214,504    
               
LIABILITIES AND SHAREHOLDERS' EQUITY              
 Liabilities               
 Interest-bearing liabilities               
 Savings and interest-bearing transaction accounts   $ 2,785,216  $ 1,279 0.19%    $ 2,510,593  $ 1,245 0.20%
 Time deposits   1,528,079  2,105 0.56%    1,430,625  2,075 0.58%
 Total interest-bearing deposits   4,313,295  3,384 0.32%    3,941,218  3,320 0.33%
 Federal funds purchased   508  --  0.00%    552  1 0.72%
 Securities sold under agreement to repurchase   149,352  182 0.49%    135,569  171 0.50%
 FHLB borrowed funds   377,326  946 1.02%    357,922  915 1.01%
 Subordinated debentures   60,826  328 2.19%    46,393  255 2.18%
 Total interest-bearing liabilities   4,901,307  4,840 0.40%    4,481,654  4,662 0.41%
 Non-interest bearing liabilities               
 Non-interest bearing deposits  1,003,495        931,918    
 Other liabilities   8,825        31,312    
 Total liabilities   5,913,627        5,444,884    
 Shareholders' equity   852,978        769,620    
 Total liabilities and shareholders' equity   $ 6,766,605        $ 6,214,504    
 Net interest spread      5.42%       5.02%
 Net interest income and margin - FTE     $ 78,591 5.48%      $ 68,188 5.09%
               
 Home BancShares, Inc. 
 Consolidated Net Interest Margin 
 (Unaudited) 
             
   Three Months Ended 
   March 31, 2014   March 31, 2013 
   Average   Income/   Yield/   Average   Income/   Yield/ 
 (Dollars in thousands)   Balance   Expense   Rate   Balance   Expense   Rate 
             
             
ASSETS            
Earning assets             
Interest-bearing balances due from banks   $ 63,018  $ 24 0.15%  $ 148,744  $ 98 0.27%
Federal funds sold   31,482  16 0.21%  15,724  7 0.18%
Investment securities - taxable   1,005,313  4,470 1.80%  561,056  2,403 1.74%
Investment securities - non-taxable - FTE   286,328  3,789 5.37%  165,411  2,419 5.93%
Loans receivable - FTE   4,427,994  75,132 6.88%  2,684,376  44,296 6.69%
Total interest-earning assets   5,814,135  83,431 5.82%  3,575,311  49,223 5.58%
Non-earning assets   952,470      617,582    
Total assets   $ 6,766,605      $ 4,192,893    
             
LIABILITIES AND SHAREHOLDERS' EQUITY            
Liabilities             
Interest-bearing liabilities             
Savings and interest-bearing transaction accounts   $ 2,785,216  $ 1,279 0.19%  $ 1,771,631  $ 814 0.19%
Time deposits   1,528,079  2,105 0.56%  986,787  1,671 0.69%
Total interest-bearing deposits   4,313,295  3,384 0.32%  2,758,418  2,485 0.37%
Federal funds purchased   508  --  0.00%  --   --  0.00%
Securities sold under agreement to repurchase   149,352  182 0.49%  69,664  80 0.47%
FHLB borrowed funds   377,326  946 1.02%  130,376  1,004 3.12%
Subordinated debentures   60,826  328 2.19%  27,149  230 3.44%
Total interest-bearing liabilities   4,901,307  4,840 0.40%  2,985,607  3,799 0.52%
Non-interest bearing liabilities             
Non-interest bearing deposits  1,003,495      668,222    
Other liabilities   8,825      18,769    
Total liabilities   5,913,627      3,672,598    
Shareholders' equity   852,978      520,295    
Total liabilities and shareholders' equity   $ 6,766,605      $ 4,192,893    
Net interest spread      5.42%     5.06%
Net interest income and margin - FTE     $ 78,591 5.48%    $ 45,424 5.15%
             
CONTACT: Brian S. Davis
         Chief Accounting Officer &
         Investor Relations Officer
         Home BancShares, Inc.
         (501) 328-4770

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Source: Home BancShares, Inc.
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