Home BancShares, Inc. Announces Record Net Income of $66.5 Million for 2013

Home BancShares, Inc. Announces Record Net Income of $66.5 Million for 2013

CONWAY, Ark., Jan. 16, 2014 (GLOBE NEWSWIRE) -- Home BancShares, Inc.
(Nasdaq:HOMB), parent company of Centennial Bank, today announced record net
income for the year ended December 31, 2013 of $66.5 million compared to $63.0
million for the year ended 2012. Diluted earnings per share for the year ended
2013 was $1.14 per share compared to $1.11 per share for 2012. Excluding the
$18.4 million of 2013 merger expenses associated with the recently completed
acquisition of Liberty Bancshares, Inc. (Liberty), diluted earnings per share
for the year ended 2013 was $1.33 per share. Excluding the net total expense
of $2.0 million for merger expenses and gain on acquisition associated with
the three acquisitions completed during 2012, diluted earnings per share for
the year ended 2012 was $1.13 per share. Excluding merger expenses and
acquisition gain, this represents an increase of $0.20 per share or 17.7% for
the year ended 2013 when compared to the previous year.

For the fourth quarter of 2013, the Company recorded quarterly net income of
$13.0 million, or $0.19 diluted earnings per common share, compared to $16.9
million of net income, or $0.30 diluted earnings per common share for the same
quarter in 2012. Excluding the $17.3 million of fourth quarter 2013 merger
expenses associated with the Liberty Bancshares, Inc. acquisition, diluted
earnings per share for the fourth quarter 2013 was $0.37 per share. Excluding
the net total income of $36,000 for merger expenses and gain on acquisition
associated with the two acquisitions completed during the fourth quarter of
2012, diluted earnings per share for the fourth quarter 2012 was $0.30 per
share. Excluding merger expenses and acquisition gain, this represents an
increase of $0.07 per share or 23.3% for the fourth quarter 2013 when compared
to the fourth quarter of the previous year.

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
fourth quarter of 2013 was $0.21 compared to $0.31 diluted earnings per share
excluding intangible amortization (split adjusted) for the same period in
2012.

"During the fourth quarter we made a game-changing purchase with the Liberty
acquisition. It was a historical accomplishment for Home BancShares to be able
to complete Arkansas's largest ever in-state bank acquisition plus convert the
core operating systems in the same quarter. This impressive execution has the
Company in position to realize the anticipated cost savings, thereby rewarding
our shareholders," said John Allison, Chairman. "Our team is focused on this
important task and is working to recognize these enhancements as quickly as
possible. I am looking forward to watching our team succeed in this process.
As a result, I believe there is a bright future for us during 2014."

"We have been able to achieve many successes throughout the year that
positioned us to be ready to handle the acquisition of Liberty," said Randy
Sims, Chief Executive Officer. "As for the financial results, we are proud of
the record profit reported for 2013. It was a truly remarkable financial
performance year with the Company reporting net income of $66.5 million and
diluted earnings per share of $1.14 per share or net income of $77.7 million
and diluted earnings per share of $1.33 excluding merger expenses. During the
year we have been focused on our efficiency ratio and net interest margin.
These efforts have paid off as we are pleased to report an impressive 45.49%
core efficiency ratio and 5.19% net interest margin for the year."

                             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 fourth quarter
2013 impairment testing, eight 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 $14.1
million as an adjustment to yield over the weighted average life of the loans
($1.8 million was recognized during the fourth quarter of 2013). 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 $8.4 million ($1.3 was recognized for
the fourth quarter of 2013) and increase our FDIC true-up liability by $1.3
million ($46,000 was recognized for the fourth quarter of 2013). The $8.4
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 $1.3 million will be expensed over
the remaining true-up measurement date as other non-interest expense.

Additionally, during our fourth quarter 2013 impairment testing, five FDIC
loss sharing pools evaluated by the Company were determined to have material
projected credit deterioration.As a result of the deterioration, the Company
recognized $3.9 million in the allowance for loan losses for covered
loans.Since these losses will be under loss share with the FDIC, the Company
was able to establish an additional $3.1 million of indemnification asset.The
financial impact of this impairment testing was $891,000 of provision for loan
losses for covered loans.

Net interest income for the fourth quarter of 2013 increased 62.4% to $67.1
million from $41.3 million during the fourth quarter of 2012. For the fourth
quarter of 2013, the effective yield on non-covered loans and covered loans
was 6.00% and 12.93%, respectively. Net interest margin, on a fully taxable
equivalent basis, was 5.09% for the quarter just ended compared to 4.86% in
the fourth quarter of 2012, an increase of 23 basis points.The pools which
have been determined to have material projected credit improvement as a result
of the quarterly impairment testing during 2013 and the acquisition of Liberty
have significantly changed the mix and metrics on the net interest margin over
the year.Although there have been many changes throughout the year, the
Company continues to remain focused on expanding its net interest margin
through opportunities such as improved pricing on interest-bearing deposits.

The Company reported $12.2 million of non-interest income for the fourth
quarter of 2013, compared to $16.2 million for the fourth quarter of
2012.Excluding gain on acquisitions, non-interest income for the fourth
quarter of 2013 was $12.2 million compared to $11.0 million for the fourth
quarter of 2012.The most important components of the fourth quarter
non-interest income were $6.0 million from service charges on deposits
accounts, $5.4 million from other service charges and fees, $1.5 million from
mortgage lending income, $840,000 from other income, $778,000 from insurance
commissions, and $347,000 from gain on sale of OREO offset by the $2.9 million
of net amortization on the FDIC indemnification asset. 

Non-interest expense for the fourth quarter of 2013 was $54.9 million compared
to $29.6 million for the fourth quarter of 2012.Excluding merger expenses,
non-interest expense for the fourth quarter of 2013 was $37.6 million compared
to $24.4 million for the fourth quarter of 2012. These increases are primarily
associated with the acquisition of Liberty during the fourth quarter of
2013.Excluding merger expenses, non-interest expense only increased 53.9%
when compared to 60.6% in asset growth.For the fourth quarter of 2013, our
core efficiency ratio was 45.22% which is comparable to the 44.40% reported
for fourth quarter of 2012.On December 6, 2013, the Company completed the
integration of Liberty's operating systems.As a result, during 2014 the
Company anticipates it will be able to continue achieving cost savings from
the Liberty transaction.

                             Financial Condition

Total non-covered loans were $4.19 billion at December 31, 2013 compared to
$2.33 billion at December 31, 2012. Total covered loans were $282.5 million
at December 31, 2013 compared to $384.9 million at December 31, 2012. Total
deposits were $5.39 billion at December 31, 2013 compared to $3.48 billion at
December 31, 2012. Total assets were $6.81 billion at December 31, 2013
compared to $4.24 billion at December 31, 2012.All of these increases are
primarily related to the acquisition of Liberty during the fourth quarter of
2013.

Non-performing non-covered loans were $38.3 million as of December 31, 2013,
of which $20.3 million were located in Florida.Non-performing non-covered
loans as a percent of total non-covered loans were 0.91% as of December 31,
2013 compared to 1.17% as of December 31, 2012. Non-performing non-covered
assets were $68.4 million as of December 31, 2013, of which $24.9 million were
located in Florida.Non-performing non-covered assets as a percent of total
non-covered assets were 1.07% as of December 31, 2013 compared to 1.30% as of
December 31, 2012.

The Company's allowance for loan losses for non-covered loans was $39.0
million at December 31, 2013, or 0.93% of total non-covered loans, compared to
$45.2 million, or 1.94% of total non-covered loans, at December 31, 2012. As
of December 31, 2013 and 2012, 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 4.89% and 5.26%, respectively.As of December 31, 2013 and 2012,
the Company's allowance for loan losses for non-covered loans was 102% and
166% of its total non-performing non-covered loans, respectively.

Stockholders' equity was $841.0 million at December 31, 2013 compared to
$515.5 million at December 31, 2012, an increase of $325.5 million.During the
fourth quarter of 2013, the Company issued $290.1 million of common stock to
the shareholders of Liberty.Book value per common share was $12.92 at
December 31, 2013 compared to $9.17 (split adjusted) at December 31, 2012.
Tangible book value per common share was $7.94 at December 31, 2013 compared
to $7.99 and $7.43 (split adjusted) at September 30, 2013 and December 31,
2012, respectively.Excluding the decline of accumulated other comprehensive
income (i.e. UGL on investments) in equity and the quarterly dividend on the
common stock the December 31, 2013 tangible book value would have increased by
$0.07 from the amount reported as of September 30, 2013.

                                   Branches

During the fourth quarter of 2013, the Company acquired 46 Arkansas locations
as a result of Liberty.In an effort to achieve efficiencies from this
transaction, the Company subsequently closed or merged 4 locations. Also
during the fourth quarter of 2013, the Company closed one branch in Panama
City, Florida.The Company currently has no plans for additional de novo
branch locations.During the first quarter of 2014, the Company has plans to
close one branch in Panacea, Florida.The Company currently has 88 branches in
Arkansas, 53 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, January 16, 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: 10038852, which will be available until January 24,
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, 2012 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)
                                                                     
                     Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,
(In thousands)       2013       2013       2013       2013       2012
                                                                     
ASSETS                                                                
                                                                     
Cash and due from     $104,005   $77,261    $75,148    $95,604    $101,972
banks
Interest-bearing
deposits with other   61,529      35,080      97,576      206,753     129,883
banks
Cash and cash         165,534     112,341     172,724     302,357     231,855
equivalents
Federal funds sold   4,275       10,700      2,475       2,850       17,148
Investment securities 1,175,484   839,560     736,406     724,929     726,223
- available-for-sale
Investment securities 114,621     9,528       --         --         --
- held-to-maturity
Loans receivable not
covered by loss       4,194,437   2,378,838   2,339,242   2,309,146   2,331,199
share
Loans receivable
covered by FDIC loss  282,516     308,072     329,802     358,669     384,884
share
Allowance for loan    (43,815)    (38,748)    (41,450)    (45,935)    (50,632)
losses
Loans receivable,     4,433,138   2,648,162   2,627,594   2,621,880   2,665,451
net
Bank premises and     197,224     119,637     119,737     117,534     113,883
equipment, net
Foreclosed assets
held for sale not     29,869      14,158      15,985      18,861      20,393
covered by loss
share
Foreclosed assets
held for sale covered 20,999      24,320      27,073      29,928      31,526
by FDIC loss share
FDIC indemnification  89,611      101,192     116,071     126,275     139,646
asset
Cash value of life    63,501      59,602      59,401      59,185      59,219
insurance
Accrued interest      22,944      14,275      14,424      14,367      16,305
receivable
Deferred tax asset,   89,412      46,045      46,655      40,907      46,998
net
Goodwill             301,736     85,681      85,681      85,681      85,681
Core deposit and      22,298      9,655       10,457      11,259      12,061
other intangibles
Other assets         81,215      66,450      56,654      69,494      75,741
Total assets         $6,811,861 $4,161,306 $4,091,337 $4,225,507 $4,242,130
                                                                     
LIABILITIES AND                                                       
STOCKHOLDERS' EQUITY
                                                                     
Liabilities                                                           
Deposits:                                                            
Demand and            $991,161   $757,328   $733,374   $717,830   $666,414
non-interest-bearing
Savings and
interest-bearing      2,792,423   1,683,010   1,735,280   1,810,957   1,784,047
transaction accounts
Time deposits        1,609,462   808,480     856,581     936,649     1,032,991
Total deposits       5,393,046   3,248,818   3,325,235   3,465,436   3,483,452
Federal funds         --         --         --         --         --
purchased
Securities sold under
agreements to         160,984     71,307      73,461      77,194      66,278
repurchase
FHLB borrowed funds  350,661     270,232     130,251     130,369     130,388
Accrued interest
payable and other     5,389       22,714      25,787      21,020      17,672
liabilities
Subordinated          60,826      3,093       3,093       3,093       28,867
debentures
Total liabilities    5,970,906   3,616,164   3,557,827   3,697,112   3,726,657
                                                                     
Stockholders' equity                                                 
Common stock         651         563         562         281         281
Capital surplus      708,058     417,627     416,795     416,741     416,354
Retained earnings    136,386     128,316     114,172     100,730     86,837
Accumulated other
comprehensive income  (4,140)     (1,364)     1,981       10,643      12,001
(loss)
Total stockholders'   840,955     545,142     533,510     528,395     515,473
equity
Total liabilities and $6,811,861 $4,161,306 $4,091,337 $4,225,507 $4,242,130
stockholders' equity



Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
                                                                              
                       Quarter Ended                                   Year Ended
                       Dec.     Sep.     Jun.     Mar.     Dec.     Dec. 31, Dec. 31,
                        31,      30,      30,      31,      31,
(In thousands)         2013    2013    2013    2013    2012    2013     2012
                                                                              
Interest income                                                               
Loans                  $65,338 $45,003 $44,036 $44,159 $41,203 $198,536 $159,359
Investment securities                                                         
Taxable                4,760    2,645    2,490    2,403    2,708    12,298    11,226
Tax-exempt             1,554    1,507    1,467    1,481    1,544    6,009     6,154
Deposits - other banks 51       19       86       98       52       254       379
Federal funds sold     14       2        6        7        9        29        17
                                                                              
Total interest income  71,717   49,176   48,085   48,148   45,516   217,126   177,135
                                                                              
Interest expense                                                              
Interest on deposits   3,320    1,810    2,129    2,485    2,877    9,744     14,989
Federal funds           1        3        --      --      1        4         1
purchased
FHLB borrowed funds    915      910      1,012    1,004    1,030    3,841     4,364
Securities sold
underagreements to     171      87       86       80       79       424       407
repurchase
Subordinated            255      16       17       230      247      518       1,774
debentures
                                                                              
Total interest expense 4,662    2,826    3,244    3,799    4,234    14,531    21,535
                                                                              
Net interest income    67,055   46,350   44,841   44,349   41,282   202,595   155,600
Provision for loan      4,330    --      850      --      1,250    5,180     2,750
losses
Net interest income
afterprovision for     62,725   46,350   43,991   44,349   40,032   197,415   152,850
loan losses
                                                                              
Non-interest income                                                           
Service charges on      6,001    4,072    4,088    3,709    4,062    17,870    15,069
deposit accounts
Other service charges   5,415    3,671    3,479    3,437    3,062    16,002    12,428
and fees
Mortgage lending        1,470    1,527    1,619    1,372    1,461    5,988     5,192
income
Insurance commissions  778      519      444      679      368      2,420     1,869
Income from title       122      156      136      109      133      523       462
services
Increase in cash value  235      203      218      180      202      836       873
of life insurance
Dividends from FHLB,
FRB, bankers' bank &    273      179      401      175      635      1,028     1,167
other
Gain on acquisitions   --      --      --      --      5,205    --       5,205
Gain on sale of SBA     --      79       --      56       --      135       404
loans
Gain (loss) on sale of  (315)    303      394      15       (30)     397       324
premises & equip, net
Gain (loss) on OREO,    347      777      441      86       121      1,651     (49)
net
Gain (loss) on          --      --      111      --      (1)      111       9
securities, net
FDIC indemnification
accretion/amortization, (2,949)  (3,177)  (2,283)  (1,992)  229      (10,401)  1,721
net
Other income           840      1,009    757      1,199    740      3,805     3,295
                                                                              
Total non-interest      12,217   9,318    9,805    9,025    16,187   40,365    47,969
income
                                                                              
Non-interest expense                                                          
Salaries and employee   19,504   12,981   12,957   12,952   12,348   58,394    47,289
benefits
Occupancy and           5,670    4,010    3,894    3,594    3,712    17,168    14,500
equipment
Data processing         1,538    1,114    1,231    1,510    1,331    5,393     4,930
expense
Other operating         28,162   8,610    7,773    7,807    12,186   52,352    35,649
expenses
                                                                              
Total non-interest      54,874   26,715   25,855   25,863   29,577   133,307   102,368
expense
                                                                              
Income before income    20,068   28,953   27,941   27,511   26,642   104,473   98,451
taxes
Income tax expense     7,118    10,590   10,282   9,963    9,703    37,953    35,429
Net income available to $12,950 $18,363 $17,659 $17,548 $16,939 $66,520  $63,022
all shareholders



Home BancShares, Inc.
Selected Financial Information
(Unaudited)
                                                                   
             Quarter Ended                                   Year Ended
(Dollars and  Dec.     Sep.     Jun.     Mar.     Dec.     Dec.     Dec.
shares in     31,      30,      30,      31,      31,      31,      31,
thousands,
except per    2013    2013    2013    2013    2012    2013    2012
share data)
                                                                   
                                                                   
PER SHARE                                                           
DATA
                                                                   
Diluted
earnings per  $0.19   $0.33   $0.31   $0.31   $0.30   $1.14   $1.11
common share
Diluted
earnings per
common share  0.21     0.33     0.32     0.32     0.31     1.18     1.14
excluding
intangible
amortization
Basic
earnings per  0.19     0.33     0.32     0.31     0.30     1.15     1.12
common share
Dividends per
share -       0.075    0.075    0.075    0.065    0.130    0.290    0.290
common
Book value
per common    12.92    9.69     9.49     9.40     9.17     12.92    9.17
share
Tangible book
value per     7.94     7.99     7.78     7.67     7.43     7.94     7.43
common share
                                                                   
STOCK                                                               
INFORMATION
                                                                   
Average
common shares 62,865   56,256   56,234   56,222   56,145   57,908   56,274
outstanding
Average
diluted       63,234   56,620   56,577   56,535   56,486   58,252   56,630
shares
outstanding
End of period
common shares 65,082   56,278   56,243   56,229   56,213   65,082   56,213
outstanding
                                                                   
ANNUALIZED
PERFORMANCE                                                         
METRICS
                                                                   
Return on
average       0.83%     1.80%     1.71%     1.70%     1.67%     1.43%     1.58%
assets
Return on
average
assets        0.91%     1.89%     1.80%     1.79%     1.75%     1.52%     1.66%
excluding
intangible
amortization
Return on
average
assets
excluding
intangible
amortization,
provision for
loan losses,
merger        2.86%     3.09%     2.93%     2.77%     2.88%     2.91%     2.72%
expenses,
bargain
purchase
gain, gain on
life
insurance
proceeds and
income taxes
(Core ROA)
Return on
average       6.68%     13.63%    13.27%    13.68%    13.19%    11.27%    12.75%
common
equity
Return on
average
tangible
common equity 10.83%    17.04%    16.65%    17.29%    16.46%    15.26%    15.87%
excluding
intangible
amortization
Efficiency    66.73%    45.67%    44.98%    46.03%    49.21%    52.44%    47.88%
ratio
Core
efficiency    45.22%    44.76%    45.76%    46.39%    44.40%    45.49%    45.73%
ratio
Net interest  5.09%     5.41%     5.18%     5.15%     4.86%     5.19%     4.70%
margin - FTE
Fully taxable
equivalent    $1,133  $1,073  $1,051  $1,075  $1,122  $4,332  $4,475
adjustment
Total         83,934   58,494   57,890   57,173   61,703   257,491  225,104
revenue
                                                                   
EARNINGS                                                            
EXCLUDING
INTANGIBLE                                                          
AMORTIZATION
                                                                   
GAAP net
income
available to  $12,950 $18,363 $17,659 $17,548 $16,939 $66,520 $63,022
common
shareholders
Intangible
amortization  740      487      488      487      452      2,202    1,678
after-tax
Earnings
excluding     $13,690 $18,850 $18,147 $18,035 $17,391 $68,722 $64,700
intangible
amortization
                                                                   
GAAP diluted
earnings per  $0.19   $0.33   $0.31   $0.31   $0.30   $1.14   $1.11
share
Intangible
amortization  0.02     --      0.01     0.01     0.01     0.04     0.03
after-tax
Diluted
earnings per
share         $0.21   $0.33   $0.32   $0.32   $0.31   $1.18   $1.14
excluding
intangible
amortization
                                                                   
OTHER
OPERATING                                                           
EXPENSES
                                                                   
Advertising  $653    $363    $120    $693    $549    $1,829  $2,447
Merger and
acquisition   17,315   1,034    1        28       5,169    18,378   7,157
expenses
Amortization
of            1,218    802      802      802      743      3,624    2,761
intangibles
Electronic
banking       1,458    926      960      863      845      4,207    3,175
expense
Directors'    179      188      210      190      196      767      807
fees
Due from bank
service       179      136      168      133      124      616      536
charges
FDIC and
state         858      684      677      630      571      2,849    2,313
assessment
Insurance    756      572      555      566      501      2,449    1,774
Legal and     450      227      394      322      225      1,393    1,065
accounting
Other
professional  561      404      490      473      392      1,928    1,655
fees
Operating     455      309      332      343      299      1,439    1,134
supplies
Postage      295      212      231      207      216      945      896
Telephone    375      291      291      303      282      1,260    1,074
Other         3,410    2,462    2,542    2,254    2,074    10,668   8,855
expense
                                                                   
Total other
operating     $28,162 $8,610  $7,773  $7,807  $12,186 $52,352 $35,649
expenses



Home BancShares, Inc.
Selected Financial Information
(Unaudited)
                                                               
                       Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(Dollars in thousands) 2013     2013     2013     2013     2012
                                                               
BALANCE SHEET RATIOS                                            
                                                               
Total loans to total    83.01%     82.70%     80.27%     76.98%     77.97%
deposits
Common equity to        12.3%      13.1%      13.0%      12.5%      12.2%
assets
Tangible common equity  8.0%       11.1%      10.9%      10.5%      10.1%
to tangible assets
                                                               
ALLOWANCE FOR LOAN                                              
LOSSES
                                                               
Non-Covered                                                    
Balance, beginning of   $37,642  $40,498  $42,302  $45,170  $47,292
period
Loans charged off      2,417     5,101     3,361     3,318     3,739
Recoveries of loans     358       2,245     807       450       367
previously charged off
Net loans charged off  2,059     2,856     2,554     2,868     3,372
Provision for loan      3,439     --       750       --       1,250
losses
Balance, end of period $39,022  $37,642  $40,498  $42,302  $45,170
                                                               
Discount for credit
losses on non-covered   174,637   77,413    80,322    80,305    81,717
loans acquired
Net charge-offs on
loans not covered by    0.22%      0.48%      0.44%      0.50%      0.61%
loss share to average
non-covered loans
Allowance for loan
losses for non-covered  0.93%      1.58%      1.73%      1.83%      1.94%
loans to total
non-covered loans
Allowance for loan
losses for non-covered
loans plus discount for
credit losses on
non-covered loans       4.89%      4.68%      4.99%      5.13%      5.26%
acquired to total
non-covered loans plus
discount for credit
losses on non-covered
loans acquired
                                                               
Covered                                                         
Balance, beginning of   $1,106   $952     $3,633   $5,462   $7,148
period
Loans charged off      287       --       3,187     1,840     1,688
Recoveries of loans     29        154       6         11        2
previously charged off
Net loans charged off  258       (154)     3,181     1,829     1,686
Provision for loan
losses before benefit   3,945     --       500       --       --
attributable to FDIC
loss share agreements
Benefit attributable to
FDIC loss share         (3,054)   --       (400)     --       --
agreements
Net provision for loan  891       --       100       --       --
losses
Increase in FDIC        3,054     --       400       --       --
indemnification asset
Balance, end of period $4,793   $1,106   $952     $3,633   $5,462
                                                               
Total Allowance for     $43,815  $38,748  $41,450  $45,935  $50,632
Loan Losses
                                                               
NON-PERFORMING ASSETS                                           
NOT COVERED BY LOSS                                             
SHARE
                                                               
Non-performing                                                  
non-covered loans
Non-accrual non-covered $15,133  $17,187  $17,798  $19,078  $21,336
loans
Non-covered loans past  23,141    11,248    11,514    6,692     5,937
due 90 days or more
Total non-performing    38,274    28,435    29,312    25,770    27,273
non-covered loans
Other non-performing                                            
non-covered assets
Non-covered foreclosed
assets held for sale,   29,869    14,158    15,985    18,861    20,393
net
Other non-performing    281       185       172       285       164
non-covered assets
Total other
non-performing          30,150    14,343    16,157    19,146    20,557
non-covered assets
Total non-performing    $68,424  $42,778  $45,469  $44,916  $47,830
non-covered assets
                                                               
Allowance for loan
losses for non-covered  101.95%    132.38%    138.16%    164.15%    165.62%
loans to non-performing
non-covered loans
Non-performing
non-covered loans to    0.91%      1.20%      1.25%      1.12%      1.17%
total non-covered
loans
Non-performing
non-covered assets to   1.07%      1.15%      1.26%      1.21%      1.30%
total non-covered
assets



Home BancShares, Inc.
Loan Information
(Unaudited)
                                                                         
                         Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,
(Dollars in thousands)   2013       2013       2013       2013       2012
                                                                         
LOANS NOT COVERED BY LOSS                                                 
SHARE
                                                                         
Real estate                                                              
Commercial real estate                                                    
loans
Non-farm/non-residential $1,739,668 $1,026,937 $1,003,391 $1,014,301 $1,019,039
Construction/land         562,667     314,232     281,994     254,673     254,800
development
Agricultural             81,618      31,906      31,119      34,288      32,513
Residential real estate                                                   
loans
Residential 1-4 family   913,332     529,732     528,260     531,698     549,269
Multifamily residential  213,232     117,639     120,899     122,998     129,742
Total real estate        3,510,517   2,020,446   1,965,663   1,957,958   1,985,363
Consumer                 69,570      30,478      32,671      33,823      37,462
Commercial and            511,421     268,900     287,351     269,463     256,908
industrial
Agricultural             37,129      30,612      26,462      16,573      19,825
Other                    65,800      28,402      27,095      31,329      31,641
Loans receivable not      $4,194,437 $2,378,838 $2,339,242 $2,309,146 $2,331,199
covered by loss share
                                                                         
LOANS COVERED BY LOSS                                                     
SHARE
                                                                         
Real estate                                                              
Commercial real estate                                                    
loans
Non-farm/non-residential $117,164   $134,843   $143,922   $155,345   $164,723
Construction/land         48,388      51,492      56,447      58,384      66,713
development
Agricultural             1,232       1,253       1,784       2,256       2,282
Residential real estate                                                   
loans
Residential 1-4 family   98,403      102,673     107,612     120,246     125,625
Multifamily residential  10,378      10,525      10,644      9,443       9,567
Total real estate        275,565     300,786     320,409     345,674     368,910
Consumer                 20          17          20          28          39
Commercial and            5,852       6,291       8,193       11,712      14,668
industrial
Agricultural             --         --         --         --         --
Other                    1,079       978         1,180       1,255       1,267
Loans receivable covered  $282,516   $308,072   $329,802   $358,669   $384,884
by loss share



Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
                                                                
                  Three Months Ended
                  December 31, 2013           September 30, 2013
                  Average  Income/ Yield/ Average  Income/ Yield/
(Dollars in        Balance  Expense Rate   Balance  Expense Rate
thousands)
                                                                
ASSETS                                                           
Earning assets                                                  
Interest-bearing
balances due from  $85,360  $51     0.24%    $40,756  $19     0.18%
banks
Federal funds      24,180    14       0.23%    4,411     2        0.18%
sold
Investment
securities -       944,786   4,760    2.00%    579,867   2,645    1.81%
taxable
Investment
securities -       270,606   2,539    3.72%    183,341   2,462    5.33%
non-taxable - FTE
Loans receivable - 3,994,744 65,486   6.50%    2,668,421 45,121   6.71%
FTE
Total
interest-earning   5,319,676 72,850   5.43%    3,476,796 50,249   5.73%
assets
Non-earning        894,828                    569,829            
assets
Total assets      $                          $                  
                   6,214,504                     4,046,625
                                                                
LIABILITIES AND
SHAREHOLDERS'                                                    
EQUITY
Liabilities                                                     
Interest-bearing                                                 
liabilities
Savings and
interest-bearing   $         $1,245  0.20%    $         $637    0.15%
transaction        2,510,593                     1,691,077
accounts
Time deposits     1,430,625 2,075    0.58%    832,149   1,173    0.56%
Total
interest-bearing   3,941,218 3,320    0.33%    2,523,226 1,810    0.28%
deposits
Federal funds      552       1        0.00%    1,511     3        0.00%
purchased
Securities sold
under agreement to 135,569   171      0.50%    73,924    87       0.47%
repurchase
FHLB borrowed      357,922   915      1.01%    144,467   910      2.50%
funds
Subordinated       46,393    255      2.18%    3,093     16       2.05%
debentures
Total
interest-bearing   4,481,654 4,662    0.41%    2,746,221 2,826    0.41%
liabilities
Non-interest
bearing                                                          
liabilities
Non-interest       931,918                    738,526            
bearing deposits
Other liabilities 31,312                     27,315             
Total liabilities 5,444,884                  3,512,062          
Shareholders'      769,620                    534,563            
equity
Total liabilities  $                            $
and shareholders'  6,214,504                   4,046,625           
equity
Net interest                          5.02%                       5.32%
spread
Net interest
income and margin            $68,188 5.09%              $47,423 5.41%
- FTE



Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
                                                                
                Year Ended
                December 31, 2013            December 31, 2012
                Average  Income/  Yield/ Average  Income/  Yield/
(Dollars in      Balance  Expense  Rate   Balance  Expense  Rate
thousands)
                                                                
ASSETS                                                           
Earning assets                                                  
Interest-bearing
balances due     $102,777 $254     0.25%    $165,862 $379     0.23%
from banks
Federal funds    13,619    29        0.21%    7,175     17        0.24%
sold
Investment
securities -     665,495   12,298    1.85%    580,826   11,226    1.93%
taxable
Investment
securities -     198,198   9,814     4.95%    158,231   10,023    6.33%
non-taxable -
FTE
Loans receivable 3,005,470 199,063   6.62%    2,490,901 159,965   6.42%
- FTE
Total
interest-earning 3,985,559 221,458   5.56%    3,402,995 181,610   5.34%
assets
Non-earning      668,656                     575,728             
assets
Total assets    $                           $                   
                 4,654,215                      3,978,723
                                                                
LIABILITIES AND
SHAREHOLDERS'                                                    
EQUITY
Liabilities                                                     
Interest-bearing                                                 
liabilities
Savings and
interest-bearing $         $3,437   0.18%    $         $3,572   0.24%
transaction      1,939,497                      1,501,093
accounts
Time deposits   1,038,246 6,307     0.61%    1,148,072 11,417    0.99%
Total
interest-bearing 2,977,743 9,744     0.33%    2,649,165 14,989    0.57%
deposits
Federal funds    520       4         0.00%    273       1         0.00%
purchased
Securities sold
under agreement  88,081    424       0.48%    67,040    407       0.61%
to repurchase
FHLB borrowed    191,258   3,841     2.01%    136,312   4,364     3.20%
funds
Subordinated     19,938    518       2.60%    39,852    1,774     4.45%
debentures
Total
interest-bearing 3,277,540 14,531    0.44%    2,892,642 21,535    0.74%
liabilities
Non-interest
bearing                                                          
liabilities
Non-interest     761,540                     569,017             
bearing deposits
Other            25,071                      22,946              
liabilities
Total            4,064,151                   3,484,605           
liabilities
Shareholders'    590,064                     494,118             
equity
Total
liabilities and  $                           $                   
shareholders'    4,654,215                      3,978,723
equity
Net interest                         5.12%                        4.60%
spread
Net interest
income and                 $206,927 5.19%              $160,075 4.70%
margin - FTE

CONTACT: Brian S. Davis
         Chief Accounting Officer &
         Investor Relations Officer
         Home BancShares, Inc.
         (501) 328-4770

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