CONWAY, Ark., Oct. 19, 2006 (PRIMEZONE) -- Home BancShares, Inc. (Nasdaq:HOMB) today announced earnings for the quarter ended September 30, 2006. Net income for the quarter was $4.3 million, a 28.8% increase over net income of $3.3 million for the third quarter of 2005. Diluted earnings per share were $0.25 for the third quarter of 2006 compared to $0.24 for the third quarter of 2005, an increase of 4.2%.
For the nine months ended September 30, 2006, net income totaled $11.4 million, a 45.0% increase over net income of $7.9 million for the first nine months of 2005. Diluted earnings per share for the first nine months of 2006 were $0.74, compared to $0.57 for the comparable period in 2005, an increase of 29.8%.
Because of acquisitions as both a growth and a capital management strategy, cash earnings (net income excluding amortization of intangibles after-tax) are useful in evaluating the Company. Cash diluted earnings per share were $0.26 for the third quarter of 2006 and 2005. Cash diluted earnings per share for the first nine months of 2006 were $0.79, compared to $0.62 for the comparable period in 2005, an increase of 27.4%.
"With annualized loan growth exceeding 17% for the third quarter, we are obviously pleased with our performance," said John W. Allison, Chairman and Chief Executive Officer. "Initially our IPO was expected to be dilutive to earnings per share but the loan growth allowed us to quickly put the proceeds from our IPO to work. As a result, dilutive earnings per share for the third quarter were equal to the earnings of the previous quarter."
Operating Highlights
Net interest income for the third quarter of 2006 increased 22.1% to $16.4 million compared to $13.5 million for the third quarter of 2005. Net interest margin, on a fully taxable equivalent basis, was 3.57% in the quarter just ended compared to 3.38% in the third quarter of 2005, an increase of 19 basis points. The Company's third quarter 2006 net interest margin of 3.57% reflected an increase of five basis points from the second quarter's 3.52%. Competitive pressures and a slightly inverted yield curve have put pressure on the Company's net interest margin. Yet, the Company was able to improve the net interest margin on a linked quarter basis. This improvement was primarily the result of the $47.2 million of net proceeds from the Company's recently completed IPO.
Net interest income for the nine months ended September 30, 2006 increased 34.4% to $46.6 million compared with $34.7 million for the nine months ended September 30, 2005. The Company's net interest margin, on a fully taxable equivalent basis, for the first nine months of 2006 was 3.54%, an increase of 22 basis points from 3.32% in the first nine months of 2005.
Non-interest income for the third quarter of 2006 was $4.7 million compared with $4.5 million for the third quarter of 2005, a 4.5% increase. Non-interest income for the nine months ended September 30, 2006 was $13.7 million compared to $11.7 million for the nine months ended September 30, 2005, a 17.6% increase. The increase in non-interest income is the result of various items including the acquisitions completed during 2005, organic growth, growth in dividends and gain on sale of premises and equipment.
Non-interest expense for the third quarter of 2006 was $14.2 million compared with $12.2 million for the third quarter of 2005, an increase of 16.8%. Non-interest expense for the first nine months of 2006 was $42.0 million compared with $32.2 million for the first nine months of 2005, an increase of 30.4%. The increase in non-interest expense is the result of the acquisitions completed during 2005 combined with continued expansion of the Company.
Financial Condition
Total loans were $1.39 billion at September 30, 2006 compared to $1.19 billion at September 30, 2005, an increase of 17.0%. Total deposits were $1.56 billion at September 30, 2006 compared to $1.48 billion at September 30, 2005, an increase of 4.9%. Total assets were $2.11 billion at September 30, 2006, a 9.39% increase from $1.93 billion at September 30, 2005.
Nonperforming loans as a percent of total loans improved to 0.45% as of September 30, 2006 when compared to 0.66% as of September 30, 2005. Nonperforming assets as a percent of total assets were 0.33% as of September 30, 2006 compared to 0.43% as of September 30, 2005.
The Company's allowance for loan losses increased to $26.0 million at September 30, 2006, or 1.87% of total loans, compared to $23.3 million, or 1.96% of total loans, at September 30, 2005. As of September 30, 2006, the Company's allowance for loan losses equaled 417% of its total nonperforming loans compared to 297% as of September 30, 2005.
Stockholders' equity was $225.6 million at September 30, 2006 compared to $166.6 million at September 30, 2005, an increase of 35.4%. Book value per common share was $13.12 at September 30, 2006 compared to book value per common share with preferred converted to common of $11.72 at September 30, 2005, an 11.9% increase. The increases in stockholders' equity and book value per share were primarily the result of the proceeds from the Company's initial public offering, which was completed on June 22, 2006, and retained earnings during the prior twelve months.
Branch Expansion
During 2006, the Company opened four de novo branch locations plus Arkansas's only mobile branch. These branch locations are located in the Arkansas communities of Searcy and Beebe plus Port Charlotte and Marco Island, Florida. Presently, the Company has three pending Florida de novo branch locations in Key West, Key Largo and Punta Gorda. These locations are scheduled to open in three to six months.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CST (2:00 EST) on Thursday, October 19, 2006. Interested parties can listen to this call by calling 1-877-407-0778 (United States and Canada only) and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-660-6853, Account Number: 286, Conference ID: 215496, which will be available until October 27, 2006 at 11:59 p.m. 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 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 the Company's Form S-1, as amended, filed with the Securities and Exchange Commission.
Home BancShares, Inc. is a financial holding company, headquartered in Conway, Arkansas, with five wholly-owned bank subsidiaries that provide a broad range of commercial and retail banking and related financial services to businesses, real estate developers and investors, individuals and municipalities. Three of the bank subsidiaries are located in the central Arkansas market area, a fourth serves Stone County in north central Arkansas, and a fifth serves the Florida Keys and southwestern Florida.
Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)
Sep. 30, Jun. 30, Mar. 31,
(In thousands) 2006 2006 2006
-------------- ----------- ----------- -----------
ASSETS
------
Cash and due from banks $ 45,216 $ 50,516 $ 42,700
Interest-bearing deposits
with other banks 831 1,406 5,323
----------- ----------- -----------
Cash and cash equivalents 46,047 51,922 48,023
Federal funds sold 31,081 11,102 19,558
Investment securities -
available for sale 509,203 515,063 525,257
Loans receivable 1,387,279 1,328,351 1,246,146
Allowance for loan losses (25,952) (25,245) (24,435)
----------- ----------- -----------
Loans receivable, net 1,361,327 1,303,106 1,221,711
Bank premises and equipment,
net 54,407 52,556 52,376
Foreclosed assets held for
sale 732 611 663
Cash value of life insurance 7,008 6,954 6,900
Investments in unconsolidated
affiliates 12,609 12,634 12,689
Accrued interest receivable 13,894 12,587 11,540
Deferred tax asset, net 9,043 11,903 9,433
Goodwill 37,527 37,527 37,527
Core deposit and other
intangibles 9,897 10,336 10,775
Other assets 20,723 17,186 14,458
----------- ----------- -----------
Total assets $ 2,113,498 $ 2,043,487 $ 1,970,910
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities
Deposits:
Demand and non-interest-
bearing $ 262,013 $ 230,818 $ 225,340
Savings and interest-
bearing transaction
accounts 489,412 531,319 538,860
Time deposits 806,108 757,070 743,243
----------- ----------- -----------
Total deposits 1,557,533 1,519,207 1,507,443
Federal funds purchased -- 10,005 --
Securities sold under
agreements to repurchase 116,339 121,826 98,545
FHLB and other borrowed
funds 157,117 126,319 139,305
Accrued interest payable
and other liabilities 12,233 11,069 11,846
Subordinated debentures 44,686 44,708 44,731
----------- ----------- -----------
Total liabilities 1,887,908 1,833,134 1,801,870
----------- ----------- -----------
Stockholders' equity
Preferred stock A -- 21 21
Preferred stock B -- 2 2
Common stock 172 146 121
Capital surplus 194,406 187,847 146,638
Retained earnings 37,496 33,687 30,449
Accumulated other
comprehensive loss (6,484) (11,350) (8,191)
Treasury stock -- -- --
----------- ----------- -----------
Total stockholders' equity 225,590 210,353 169,040
----------- ----------- -----------
Total liabilities and
stockholders' equity $ 2,113,498 $ 2,043,487 $ 1,970,910
=========== =========== ===========
Dec. 31, Sep. 30,
2005 2005
----------- -----------
ASSETS
------
Cash and due from banks $ 39,248 $ 48,272
Interest-bearing deposits with other
banks 5,431 6,851
----------- -----------
Cash and cash equivalents 44,679 55,123
Federal funds sold 7,055 16,048
Investment securities - available
for sale 530,302 550,470
Loans receivable 1,204,589 1,185,494
Allowance for loan losses (24,175) (23,252)
----------- -----------
Loans receivable, net 1,180,414 1,162,242
Bank premises and equipment, net 51,762 50,180
Foreclosed assets held for sale 758 435
Cash value of life insurance 6,850 6,787
Investments in unconsolidated affiliates 9,813 9,498
Accrued interest receivable 11,158 10,680
Deferred tax asset, net 8,821 6,107
Goodwill 37,527 38,448
Core deposit and other intangibles 11,200 11,693
Other assets 11,152 14,366
----------- -----------
Total assets $ 1,911,491 $ 1,932,077
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities
Deposits:
Demand and non-interest-bearing $ 209,974 $ 215,761
Savings and interest-bearing
transaction accounts 512,184 531,891
Time deposits 704,950 736,764
----------- -----------
Total deposits 1,427,108 1,484,416
Federal funds purchased 44,495 --
Securities sold under agreements to
repurchase 103,718 105,143
FHLB and other borrowed funds 117,054 136,346
Accrued interest payable and other
liabilities 8,504 10,295
Subordinated debentures 44,755 29,312
----------- -----------
Total liabilities 1,745,634 1,765,512
----------- -----------
Stockholders' equity
Preferred stock A 21 21
Preferred stock B 2 2
Common stock 121 121
Capital surplus 146,285 146,368
Retained earnings 27,331 24,110
Accumulated other
comprehensive loss (7,903) (3,488)
Treasury stock -- (569)
----------- -----------
Total stockholders' equity 165,857 166,565
----------- -----------
Total liabilities and stockholders'
equity $ 1,911,491 $ 1,932,077
=========== ===========
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended
------------------------------------------------
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
(In thousands) 2006 2006 2006 2005 2005
-------------- -------- -------- -------- -------- --------
Interest income
Loans $ 26,748 $ 24,003 $ 21,842 $ 20,882 $ 18,628
Investment
securities
Taxable 4,738 4,711 4,725 4,612 4,136
Tax-exempt 883 965 967 1,011 681
Deposits - other
banks 38 24 41 43 29
Federal funds sold 51 183 159 120 131
-------- -------- -------- -------- --------
Total interest
income 32,458 29,886 27,734 26,668 23,605
-------- -------- -------- -------- --------
Interest expense
Interest on
deposits 12,010 11,144 9,529 8,871 7,624
Federal funds
purchased 178 154 304 69 104
FHLB and other
borrowed funds 1,825 1,486 1,476 1,358 1,184
Securities sold
under agreements
to repurchase 1,258 994 870 930 717
Subordinated
debentures 751 745 749 652 510
-------- -------- -------- -------- --------
Total interest
expense 16,022 14,523 12,928 11,880 10,139
-------- -------- -------- -------- --------
Net interest income 16,436 15,363 14,806 14,788 13,466
Provision for loan
losses 649 590 484 979 934
-------- -------- -------- -------- --------
Net interest income
after provision
for loan losses 15,787 14,773 14,322 13,809 12,532
-------- -------- -------- -------- --------
Non-interest income
Service charges on
deposit accounts 2,354 2,263 2,052 2,318 2,247
Other service
charges and fees 541 584 611 544 600
Trust fees 166 169 152 110 109
Data processing
fees 215 215 193 205 201
Mortgage banking
income 435 439 411 441 549
Insurance
commissions 153 205 284 143 148
Income from title
services 233 282 237 218 247
Increase in cash
value of life
insurance 55 55 51 64 62
Dividends from
FHLB, FRB &
bankers' bank 180 154 106 90 86
Equity in (loss)
income of
unconsolidated
affiliate (65) (32) (116) (136) 53
Gain on sale of
equity investment -- -- -- -- 465
Gain on sale of
SBA loans -- -- 34 -- 83
Gain on sale of
premises and
equipment 129 26 2 -- --
Gain (loss) on
sale of
securities, net -- 1 -- -- (386)
Other income 302 238 384 39 32
-------- -------- -------- -------- --------
Total non-interest
income 4,698 4,599 4,401 4,036 4,496
-------- -------- -------- -------- --------
Non-interest
expense
Salaries and
employee benefits 7,376 7,399 7,348 6,328 6,549
Occupancy and
equipment 2,223 2,123 2,005 2,095 1,815
Data processing
expense 651 670 567 569 546
Other operating
expenses 3,987 3,951 3,699 3,747 3,276
-------- -------- -------- -------- --------
Total non-interest
expense 14,237 14,143 13,619 12,739 12,186
-------- -------- -------- -------- --------
Income before taxes 6,248 5,229 5,104 5,106 4,842
Income tax expense 1,960 1,593 1,588 1,551 1,512
-------- -------- -------- -------- --------
Net income $ 4,288 $ 3,636 $ 3,516 $ 3,555 $ 3,330
======== ======== ======== ======== ========
Nine Months Ended
Sep. 30, Sep. 30,
2006 2005
-------- --------
Interest income
Loans $ 72,593 $ 44,362
Investment securities
Taxable 14,174 12,491
Tax-exempt 2,815 1,715
Deposits - other banks 103 58
Federal funds sold 393 164
-------- --------
Total interest income 90,078 58,790
-------- --------
Interest expense
Interest on deposits 32,683 18,012
Federal funds purchased 636 330
FHLB and other borrowed funds 4,787 2,688
Securities sold under agreements to
repurchase 3,122 1,727
Subordinated debentures 2,245 1,365
-------- --------
Total interest expense 43,473 24,122
-------- --------
Net interest income 46,605 34,668
Provision for loan losses 1,723 2,848
-------- --------
Net interest income after provision for
loan losses 44,882 31,820
-------- --------
Non-interest income
Service charges on deposit accounts 6,669 6,001
Other service charges and fees 1,736 1,555
Trust fees 487 348
Data processing fees 623 463
Mortgage banking income 1,285 1,210
Insurance commissions 642 531
Income from title services 752 605
Increase in cash value of life insurance 161 192
Dividends from FHLB, FRB & bankers' bank 440 225
Equity in (loss) income of unconsolidated
affiliate (213) (456)
Gain on sale of equity investment -- 465
Gain on sale of SBA loans 34 529
Gain on sale of premises and equipment 157 324
Gain (loss) on sale of securities, net 1 (539)
Other income 924 198
-------- --------
Total non-interest income 13,698 11,651
-------- --------
Non-interest expense
Salaries and employee benefits 22,123 17,573
Occupancy and equipment 6,351 4,774
Data processing expense 1,888 1,422
Other operating expenses 11,637 8,427
-------- --------
Total non-interest expense 41,999 32,196
-------- --------
Income before taxes 16,581 11,275
Income tax expense 5,141 3,384
-------- --------
Net income $ 11,440 $ 7,891
======== ========
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter Ended
-------------------------------------------
(Dollars and shares
in thousands, except Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
per share data) 2006 2006 2006 2005 2005
-------------------- ------- ------- ------- ------- -------
PER SHARE DATA
--------------
Diluted earnings
per share $ 0.25 $ 0.25 $ 0.24 $ 0.25 $ 0.24
Diluted cash
earnings per share 0.26 0.27 0.26 0.27 0.26
Basic earnings per
share 0.26 0.28 0.28 0.28 0.27
Dividends per share
- common 0.025 0.020 0.020 0.020 0.020
Book value per
common share 13.12 12.49 11.68 11.45 11.55
Book value per
common share with
preferred converted
to common 13.12 12.52 11.83 11.63 11.72
Tangible book value
per common share 10.36 9.23 7.70 7.43 7.40
Tangible book value
per common share
with preferred
converted to common 10.36 9.67 8.45 8.21 8.19
STOCK INFORMATION
-----------------
Average common
shares outstanding 16,361 12,224 12,123 12,098 11,855
Average diluted
shares outstanding 17,291 14,530 14,392 14,330 14,093
End of period common
shares outstanding 17,196 14,647 12,129 12,114 12,081
End of period common
shares outstanding
with preferred
converted to common 17,196 16,807 14,289 14,260 14,211
Dividends paid on
preferred stock 49 155 155 153 161
ANNUALIZED PERFORMANCE RATIOS
-----------------------------
Return on average
assets 0.83% 0.73% 0.74% 0.74% 0.74%
Cash return on
average assets 0.90% 0.81% 0.81% 0.82% 0.81%
Return on average
equity 7.81% 8.56% 8.51% 8.53% 8.20%
Cash return on
average tangible
equity 10.61% 12.80% 12.86% 13.14% 11.57%
Efficiency ratio 63.72% 66.74% 66.68% 63.46% 63.90%
Net interest margin
- FTE 3.57% 3.52% 3.53% 3.48% 3.38%
Fully taxable
equivalent
adjustment 521 572 583 559 494
RECONCILIATION OF CASH EARNINGS
-------------------------------
GAAP net income 4,288 3,636 3,516 3,555 3,330
Intangible
amortization
after-tax 267 267 258 276 241
------- ------- ------- ------- -------
Cash earnings 4,555 3,903 3,774 3,831 3,571
======= ======= ======= ======= =======
GAAP diluted
earnings per share 0.25 0.25 0.24 0.25 0.24
Intangible
amortization
after-tax 0.01 0.02 0.02 0.02 0.02
------- ------- ------- ------- -------
Diluted cash
earnings per share 0.26 0.27 0.26 0.27 0.26
======= ======= ======= ======= =======
OTHER OPERATING EXPENSES
------------------------
Advertising $ 568 $ 612 $ 558 $ 582 $ 490
Amortization of
intangibles 439 439 425 438 392
ATM expense 152 160 118 114 104
Directors' fees 203 202 204 182 136
Due from bank
service charges 91 84 70 70 68
FDIC and state
assessment 142 127 125 146 112
Insurance 285 233 223 132 129
Legal and accounting 191 274 282 177 323
Other professional
fees 204 149 134 230 81
Operating supplies 202 253 229 243 189
Postage 171 166 163 173 140
Telephone 251 284 220 216 182
Other expense 1,088 968 948 1,044 930
------- ------- ------- ------- -------
Total other
operating
expenses $ 3,987 $ 3,951 $ 3,699 $ 3,747 $ 3,276
======= ======= ======= ======= =======
Nine Months Ended
-----------------
Sep. 30, Sep. 30,
2006 2005
------- -------
PER SHARE DATA
--------------
Diluted earnings per share $ 0.74 $ 0.57
Diluted cash earnings per share 0.79 0.62
Basic earnings per share 0.82 0.64
Dividends per share - common 0.065 0.050
Book value per common share 13.12 11.55
Book value per common share with
preferred converted to common 13.12 11.72
Tangible book value per common share 10.36 7.40
Tangible book value per common share with
preferred converted to common 10.36 8.19
STOCK INFORMATION
-----------------
Average common shares outstanding 13,585 11,782
Average diluted shares outstanding 15,415 14,016
End of period common shares outstanding 17,196 12,081
End of period common shares outstanding with
preferred converted to common 17,196 14,211
Dividends paid on preferred stock 359 421
ANNUALIZED PERFORMANCE RATIOS
-----------------------------
Return on average assets 0.77% 0.67%
Cash return on average assets 0.84% 0.74%
Return on average equity 8.25% 6.81%
Cash return on average tangible equity 11.90% 9.21%
Efficiency ratio 65.66% 65.55%
Net interest margin - FTE 3.54% 3.32%
Fully taxable equivalent adjustment 1,676 1,231
RECONCILIATION OF CASH EARNINGS
-------------------------------
GAAP net income 11,440 7,891
Intangible amortization after-tax 792 615
------- -------
Cash earnings 12,232 8,506
======= =======
GAAP diluted earnings per share 0.74 0.57
Intangible amortization after-tax 0.05 0.05
------- -------
Diluted cash earnings per share 0.79 0.62
======= =======
OTHER OPERATING EXPENSES
------------------------
Advertising $ 1,738 $ 1,485
Amortization of intangibles 1,303 1,028
ATM expense 430 313
Directors' fees 609 323
Due from bank service charges 245 214
FDIC and state assessment 394 357
Insurance 741 372
Legal and accounting 747 764
Other professional fees 487 304
Operating supplies 684 502
Postage 500 407
Telephone 755 453
Other expense 3,004 1,905
------- -------
Total other operating expenses $11,637 $ 8,427
======= =======
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Sep. 30, Jun. 30, Mar. 31,
(Dollars in thousands) 2006 2006 2006
---------------------- ---------- ---------- ----------
LOAN BALANCES
-------------
Real estate
Commercial real estate loans
Non-farm/non-residential $ 454,227 $ 424,645 $ 422,618
Construction/land development 394,036 379,820 331,532
Agricultural 11,598 12,805 13,197
Residential real estate loans
Residential 1-4 family 228,347 226,129 220,273
Multifamily residential 34,527 35,017 36,425
---------- ---------- ----------
Total real estate 1,122,735 1,078,416 1,024,045
Consumer 43,716 41,920 39,599
Commercial and industrial 181,673 173,715 166,025
Agricultural 26,439 22,665 8,287
Other 12,716 11,635 8,190
---------- ---------- ----------
Total loans receivable before
allowance for loan losses 1,387,279 1,328,351 1,246,146
Allowance for loan losses 25,952 25,245 24,435
---------- ---------- ----------
Total loans receivable, net $1,361,327 $1,303,106 $1,221,711
========== ========== ==========
Loans to deposits 89.07% 87.44% 82.67%
ALLOWANCE FOR LOAN LOSSES
-------------------------
Balance, beginning of period $ 25,245 $ 24,435 $ 24,175
Loans charged off 210 289 486
Recoveries of loans previously
charged off 268 509 262
---------- ---------- ----------
Net (recoveries) loans
charged off (58) (220) 224
Allowance for loan losses of
acquired institutions -- -- --
Provision for loan losses 649 590 484
---------- ---------- ----------
Balance, end of period $ 25,952 $ 25,245 $ 24,435
========== ========== ==========
Net (recoveries) charge-offs
to average loans -0.02% -0.07% 0.07%
Allowance for loan losses to
total loans 1.87% 1.90% 1.96%
NON-PERFORMING ASSETS
---------------------
Non-performing loans
Non-accrual loans $ 5,347 $ 6,697 $ 7,824
Loans past due 90 days or more 879 1,208 411
---------- ---------- ----------
Total non-performing loans 6,226 7,905 8,235
---------- ---------- ----------
Other non-performing assets
Foreclosed assets held for sale 732 611 663
Other non-performing assets 15 -- 4
---------- ---------- ----------
Total other non-performing
assets 747 611 667
---------- ---------- ----------
Total non-performing assets $ 6,973 $ 8,516 $ 8,902
========== ========== ==========
Allowance for loan losses to
non-performing loans 416.83% 319.35% 296.72%
Non-performing loans to total
loans 0.45% 0.60% 0.66%
Non-performing assets to total
assets 0.33% 0.42% 0.45%
Dec. 31, Sep. 30,
2005 2005
---------- ----------
LOAN BALANCES
-------------
Real estate
Commercial real estate loans
Non-farm/non-residential $ 411,839 $ 401,292
Construction/land development 291,515 281,942
Agricultural 13,112 14,022
Residential real estate loans
Residential 1-4 family 221,831 225,849
Multifamily residential 34,939 27,512
---------- ----------
Total real estate 973,236 950,617
Consumer 39,447 39,316
Commercial and industrial 175,396 168,672
Agricultural 8,466 19,077
Other 8,044 7,812
---------- ----------
Total loans receivable before allowance
for loan losses 1,204,589 1,185,494
Allowance for loan losses 24,175 23,252
---------- ----------
Total loans receivable, net $1,180,414 $1,162,242
========== ==========
Loans to deposits 84.41% 79.86%
ALLOWANCE FOR LOAN LOSSES
-------------------------
Balance, beginning of period $ 23,252 $ 24,827
Loans charged off 504 3,324
Recoveries of loans previously charged off 448 155
---------- ----------
Net (recoveries) loans charged off 56 3,169
Allowance for loan losses of acquired
institutions -- 660
Provision for loan losses 979 934
---------- ----------
Balance, end of period $ 24,175 $ 23,252
========== ==========
Net (recoveries) charge-offs to average
loans 0.02% 1.12%
Allowance for loan losses to total loans 2.01% 1.96%
NON-PERFORMING ASSETS
----------------------
Non-performing loans
Non-accrual loans $ 7,864 $ 7,664
Loans past due 90 days or more 426 169
---------- ----------
Total non-performing loans 8,290 7,833
---------- ----------
Other non-performing assets
Foreclosed assets held for sale 758 435
Other non-performing assets 11 35
---------- ----------
Total other non-performing assets 769 470
---------- ----------
Total non-performing assets $ 9,059 $ 8,303
========== ==========
Allowance for loan losses to non-
performing loans 291.62% 296.85%
Non-performing loans to total loans 0.69% 0.66%
Non-performing assets to total assets 0.47% 0.43%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
----------------------------------
September 30, 2006
----------------------------------
Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate
---------------------- ---------- ---------- ----------
ASSETS
------
Earning assets
Interest-bearing balances due
from banks $ 2,927 $ 38 5.15%
Federal funds sold 3,887 51 5.21%
Investment securities -
taxable 418,753 4,738 4.49%
Investment securities -
non-taxable - FTE 91,931 1,361 5.87%
Loans receivable - FTE 1,364,587 26,791 7.79%
---------- ----------
Total interest-earning assets 1,882,085 32,979 6.95%
----------
Non-earning assets 177,846
----------
Total assets $2,059,931
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities
Interest-bearing liabilities
Interest-bearing transaction
and savings deposits $ 473,482 $ 3,358 2.81%
Time deposits 769,271 8,652 4.46%
---------- ----------
Total interest-bearing
deposits 1,242,753 12,010 3.83%
Federal funds purchased 13,232 178 5.34%
Securities sold under agreement
to repurchase 118,796 1,258 4.20%
FHLB and other borrowed funds 153,921 1,825 4.70%
Subordinated debentures 44,699 751 6.67%
---------- ----------
Total interest-bearing
liabilities 1,573,401 16,022 4.04%
----------
Non-interest bearing
liabilities
Non-interest-bearing deposits 256,407
Other liabilities 12,179
----------
Total liabilities 1,841,987
Shareholders' equity 217,944
----------
Total liabilities and
shareholders' equity $2,059,931
==========
Net interest spread 2.91%
Net interest income and margin
- FTE $ 16,957 3.57%
==========
Three Months Ended
----------------------------------
June 30, 2006
----------------------------------
Average Income/ Yield/
Balance Expense Rate
---------- ---------- ----------
ASSETS
------
Earning assets
Interest-bearing balances due
from banks $ 2,125 $ 24 4.53%
Federal funds sold 14,823 183 4.95%
Investment securities -
taxable 430,923 4,711 4.38%
Investment securities -
non-taxable - FTE 91,979 1,496 6.52%
Loans receivable - FTE 1,277,789 24,044 7.55%
---------- ----------
Total interest-earning assets 1,817,639 30,458 6.72%
----------
Non-earning assets 174,109
----------
Total assets $1,991,748
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities
Interest-bearing liabilities
Interest-bearing transaction
and savings deposits $ 535,077 $ 3,226 2.42%
Time deposits 758,249 7,918 4.19%
---------- ----------
Total interest-bearing
deposits 1,293,326 11,144 3.46%
Federal funds purchased 11,992 154 5.15%
Securities sold under agreement
to repurchase 105,040 994 3.80%
FHLB and other borrowed funds 134,088 1,486 4.45%
Subordinated debentures 44,722 745 6.68%
---------- ----------
Total interest-bearing
liabilities 1,589,168 14,523 3.67%
----------
Non-interest bearing
liabilities
Non-interest-bearing deposits 221,723
Other liabilities 10,443
----------
Total liabilities 1,821,334
Shareholders' equity 170,414
----------
Total liabilities and
shareholders' equity $1,991,748
==========
Net interest spread 3.05%
Net interest income and margin
- FTE $ 15,935 3.52%
==========
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Nine Months Ended
----------------------------------
September 30, 2006
----------------------------------
Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate
---------------------- ---------- ---------- ----------
ASSETS
------
Earning assets
Interest-bearing balances due
from banks $ 2,916 $ 103 4.72%
Federal funds sold 11,062 393 4.75%
Investment securities - taxable 426,549 14,174 4.44%
Investment securities -
non-taxable - FTE 92,179 4,367 6.33%
Loans receivable - FTE 1,289,594 72,717 7.54%
---------- ----------
Total interest-earning assets 1,822,300 91,754 6.73%
----------
Non-earning assets 173,821
----------
Total assets $1,996,121
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities
Interest-bearing liabilities
Interest-bearing transaction
and savings deposits $ 488,386 $ 9,323 2.55%
Time deposits 747,782 23,360 4.18%
---------- ----------
Total interest-bearing
deposits 1,236,168 32,683 3.53%
Federal funds purchased 17,221 636 4.94%
Securities sold under agreement
to repurchase 107,798 3,122 3.87%
FHLB and other borrowed funds 141,994 4,787 4.51%
Subordinated debentures 44,722 2,245 6.71%
---------- ----------
Total interest-bearing
liabilities 1,547,903 43,473 3.75%
----------
Non-interest bearing liabilities
Non-interest-bearing deposits 251,823
Other liabilities 10,903
----------
Total liabilities 1,810,629
Shareholders' equity 185,492
----------
Total liabilities and
shareholders' equity $1,996,121
==========
Net interest spread 2.98%
Net interest income and margin
- FTE $ 48,281 3.54%
==========
Nine Months Ended
----------------------------------
September 30, 2005
----------------------------------
Average Income/ Yield/
Balance Expense Rate
---------- ---------- ----------
ASSETS
------
Earning assets
Interest-bearing balances due
from banks $ 2,741 $ 58 2.83%
Federal funds sold 6,722 164 3.26%
Investment securities - taxable 445,178 12,491 3.75%
Investment securities -
non-taxable - FTE 52,848 2,799 7.08%
Loans receivable - FTE 936,917 44,509 6.35%
---------- ----------
Total interest-earning assets 1,444,406 60,021 5.56%
----------
Non-earning assets 129,014
----------
Total assets $1,573,420
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities
Interest-bearing liabilities
Interest-bearing transaction and
savings deposits $ 423,787 $ 5,502 1.74%
Time deposits 590,111 12,510 2.83%
---------- ----------
Total interest-bearing deposits 1,013,898 18,012 2.38%
Federal funds purchased 14,496 330 3.04%
Securities sold under agreement
to repurchase 78,441 1,727 2.94%
FHLB and other borrowed funds 104,787 2,688 3.43%
Subordinated debentures 26,497 1,365 6.89%
---------- ----------
Total interest-bearing
liabilities 1,238,119 24,122 2.60%
----------
Non-interest bearing liabilities
Non-interest-bearing deposits 166,458
Other liabilities 13,952
----------
Total liabilities 1,418,529
Shareholders' equity 154,891
----------
Total liabilities and
shareholders' equity $1,573,420
==========
Net interest spread 2.96%
Net interest income and margin
- FTE $ 35,899 3.32%
==========