CONWAY, Ark., Jan. 15, 2009 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB) today announced net income for the year ended December 31, 2008 of $10.1 million compared to $20.4 million for the year ended 2007. Diluted earnings per share for the year ended 2008 were $0.50, compared to $1.08 for the comparable period in 2007.
For the fourth quarter of 2008, the net loss was $9.4 million, or $0.46 diluted loss per share compared to net income of $5.4 million, or $0.28 diluted earnings per share for the same period in 2007.
Because acquisitions are 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 loss per share was $0.45 for the fourth quarter of 2008 compared to earnings of $0.30 for the fourth quarter of 2007. Cash diluted earnings per share for the year ended 2008 were $0.55, compared to $1.14 for the same period in 2007.
During the fourth quarter of 2008, the Company experienced several items that it does not consider part of its core earnings going forward. These items include a $19.0 million increased provision for loan losses over our normal quarterly provision, $2.4 million of write-downs on other real estate owned, $1.8 million of merger expenses from our bank charter consolidation, a $3.9 million impairment write-down on two trust preferred investment securities and $448,000 of other income resulting from our ownership of Arkansas Banker's Bank stock during their fourth quarter reorganization. The combined financial impact of these items to the Company on an after-tax basis is a loss of $16.2 million or $0.80 diluted per share. If adjusted for these non core items the announced loss for the fourth quarter of 2008 would reflect core net income of $6.8 million or $0.34 diluted earnings per share.
"Reporting a quarterly loss is an abnormal event for us. Even after absorbing our asset quality issues, predominantly Florida real estate, you will find a solid Company. Our hallmark continues to be strong reserves and excess capital," said John Allison, Chairman and Chief Executive Officer. "The good news is our core earnings remain steady."
During the fourth quarter of 2008, we applied for the Treasury Department's Capital Purchase Program. An additional $50.0 million of capital has been approved by the government and by the vote of our shareholders. This additional capital will increase our Tier 1 and Total Risk Based Capital ratios by approximately 2.2 percentage points to 14.9% and 16.2%, respectively. These ratios will continue to be significantly above the well capitalized guidelines established by the bank regulatory agencies of 6.0% and 10.0%, respectively. The Company anticipates receiving this $50.0 million on January 16, 2009.
Operating Highlights
Net interest income for the fourth quarter of 2008 increased 21.1% to $21.6 million compared to $17.9 million for the fourth quarter of 2007. Net interest margin, on a fully taxable equivalent basis, was 3.78% in the quarter just ended compared to 3.61% in the fourth quarter of 2007, an increase of 17 basis points. The Company's fourth quarter 2008 net interest margin of 3.78% reflected a slight decrease of 4 basis points from 3.82% in the third quarter of 2008. The Company's strong loan growth which was funded by run off in the investment portfolio and deposit growth in 2008 combined with improved pricing on our deposits allowed the Company to improve net interest margin from 2007 to 2008. The slight decrease in the 2008 linked quarters is a result of our increase in non-accrual loans and margin pressure from the most recent cuts in the Federal Funds rate.
Core non-interest income (non-interest income excluding write-downs of other real estate owned and security impairments offset by the other income from Arkansas Bankers Bank) for the fourth quarter of 2008 was $7.6 million compared with $6.7 million for the fourth quarter of 2007. The recurring improvements during the past year are the result of various items including our acquisition of Centennial Bancshares on January 1, 2008, organic growth from service charges on deposits and other service charges and fees.
Core non-interest expense (non-interest expense excluding merger expenses) for the fourth quarter of 2008 improved by $194,000 to $18.3 million when compared with $18.5 million for the third quarter of 2008. This improvement is the result of our successful efforts to control costs and the early stages of implementing improvements from our efficiency study.
Financial Condition
Total loans were $1.96 billion at December 31, 2008 compared to $1.61 billion at December 31, 2007, an increase of 21.7%. Total deposits were $1.85 billion at December 31, 2008 compared to $1.59 billion at December 31, 2007, an increase of 16.1%. Total assets were $2.58 billion at December 31, 2008, a 12.6% increase from $2.29 billion at December 31, 2007.
Nonperforming loans as a percent of total loans were 1.53% as of December 31, 2008 compared to 0.20% as of December 31, 2007. Nonperforming assets as a percent of total assets were 1.42% as of December 31, 2008 compared to 0.36% as of December 31, 2007.
The Company's allowance for loan losses was $40.4 million at December 31, 2008, or 2.06% of total loans, compared to $29.4 million, or 1.83% of total loans, at December 31, 2007. As of December 31, 2008, the Company's allowance for loan losses equaled 135% of its total nonperforming loans compared to 904% as of December 31, 2007.
Stockholders' equity was $283.0 million at December 31, 2008 compared to $253.1 million at December 31, 2007, an increase of 11.9%. Book value per common share was $14.25 at December 31, 2008 compared to $13.58 at December 31, 2007, a 4.9% increase.
Branch Expansion
During 2008, the Company opened Arkansas branch locations in Morrilton and Cabot. Presently, the Company is evaluating additional opportunities and has one commitment for an additional de novo branch in Heber Springs, Arkansas during the next several months.
Charter Consolidation
In the fourth quarter of 2008, First State Bank and Marine Bank consolidated and adopted Centennial Bank as its new name. Community Bank and Bank of Mountain View will follow suit in the first quarter of 2009, and Twin City Bank and the original Centennial Bank will complete the process in the summer of 2009. All of the banks will, at that time, have the same name, logo and charter allowing for a more customer-friendly banking experience and seamless transactions across our entire banking network.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, January 15, 2009. Interested parties can listen to this call by calling 1-800-860-2442 and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-344-7529, Passcode: 426358, which will be available until January 23, 2009 at 9:00 a.m. 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
Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas, with 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. The bank subsidiaries have locations in central Arkansas, north central Arkansas, southern Arkansas, the Florida Keys and southwestern Florida. Recently, the Company announced plans to combine the charters of its banks into a single charter and adopt Centennial Bank as their common name. This combination is in process and is expected to be completed by the middle of this year. The Company's common stock is traded through the NASDAQ Global Select Market under the symbol "HOMB."
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 are included in its Form 10-K, filed with the Securities and Exchange Commission in March 2008.
Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)
(In Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
thousands) 2008 2008 2008 2008 2007
---------- ---------- ---------- ---------- ---------- ----------
ASSETS
------
Cash and
due from
banks $ 46,765 $ 50,445 $ 60,915 $ 53,862 $ 51,468
Interest-
bearing
deposits
with
other
banks 7,403 10,290 4,845 5,828 3,553
---------- ---------- ---------- ---------- ----------
Cash and
cash
equi-
valents 54,168 60,735 65,760 59,690 55,021
Federal
funds
sold 7,865 28,347 7,436 37,331 76
Investment
securi-
ties -
available
for sale 355,244 381,564 383,285 403,755 430,399
Loans
receiv-
able 1,956,232 1,967,923 1,951,272 1,866,969 1,606,994
Allowance
for loan
losses (40,385) (36,372) (36,563) (37,075) (29,406)
---------- ---------- ---------- ---------- ----------
Loans
receiv-
able,
net 1,915,847 1,931,551 1,914,709 1,829,894 1,577,588
Bank
premises
and
equipment,
net 73,610 70,500 70,745 71,155 67,702
Foreclosed
assets
held for
sale 6,763 9,392 5,284 5,097 5,083
Cash value
of life
insurance 50,201 49,731 49,189 48,678 48,093
Investments
in uncon-
solidated
affiliates 1,424 1,424 1,424 1,424 15,084
Accrued
interest
receivable 13,115 13,804 13,962 14,649 14,321
Deferred
tax asset,
net 16,267 14,530 12,420 10,583 9,163
Goodwill 50,038 50,038 49,849 49,849 37,527
Core
deposit
and other
intang-
ibles 6,547 7,009 7,471 7,934 7,702
Mortgage
servicing
rights 1,891 2,039 2,186 2,333 --
Other
assets 27,113 29,926 27,899 28,773 23,871
---------- ---------- ---------- ---------- ----------
Total
assets $2,580,093 $2,650,590 $2,611,619 $2,571,145 $2,291,630
========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities
Deposits:
Demand
and
non-
interest-
bearing $ 249,349 $ 263,410 $ 248,036 $ 255,532 $ 211,993
Savings
and
interest-
bearing
trans-
action
accounts 656,758 680,217 722,877 687,252 582,477
Time
deposits 941,801 969,444 930,890 911,954 797,736
---------- ---------- ---------- ---------- ----------
Total
depo-
sits 1,847,908 1,913,071 1,901,803 1,854,738 1,592,206
Federal
funds
purchased -- -- 8,485 -- 16,407
Securities
sold
under
agreements
to
repur-
chase 113,389 108,350 116,865 114,589 120,572
FHLB
borrowed
funds 282,975 278,182 238,551 249,848 251,750
Accrued
interest
payable
and other
liabili-
ties 5,202 12,350 10,440 17,936 13,067
Subordinated
debentures 47,575 47,598 47,620 47,643 44,572
---------- ---------- ---------- ---------- ----------
Total
liabil-
ities 2,297,049 2,359,551 2,323,764 2,284,754 2,038,574
---------- ---------- ---------- ---------- ----------
Stockholders'
equity
Common
stock 199 198 183 183 173
Capital
surplus 253,581 252,836 220,248 220,052 195,649
Retained
earnings 32,639 43,310 70,220 65,575 59,489
Accumulated
other
compre-
hensive
gain
(loss) (3,375) (5,305) (2,796) 581 (2,255)
---------- ---------- ---------- ---------- ----------
Total
stock-
holders'
equity 283,044 291,039 287,855 286,391 253,056
---------- ---------- ---------- ---------- ----------
Total
liabilities
and
stock-
holders'
equity $2,580,093 $2,650,590 $2,611,619 $2,571,145 $2,291,630
========== ========== ========== ========== ==========
Home BancShares, Inc.
Consolidated Statements of (Loss) Income
(Unaudited)
Quarter Ended
---------------------------------------------------
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(In thousands) 2008 2008 2008 2008 2007
---------------- ----- ----- ----- ----- -----
Interest income
Loans $ 30,527 $ 31,831 $ 32,209 $ 33,245 $ 30,887
Investment
securities
Taxable 2,870 2,982 2,996 3,762 4,011
Tax-exempt 1,267 1,216 1,199 1,168 1,093
Deposits -
other banks 6 35 37 55 34
Federal funds
sold 24 24 99 166 31
-------- -------- -------- -------- --------
Total interest
income 34,694 36,088 36,540 38,396 36,056
-------- -------- -------- -------- --------
Interest expense
Interest on
deposits 9,700 10,752 11,619 13,522 13,592
Federal
funds
purchased 14 79 20 69 170
FHLB borrowed
funds 2,382 2,239 2,059 2,575 2,712
Securities
sold under
agreements
to repurchase 173 394 367 588 974
Subordinated
debentures 800 769 734 811 748
-------- -------- -------- -------- --------
Total interest
expense 13,069 14,233 14,799 17,565 18,196
-------- -------- -------- -------- --------
Net interest
income 21,625 21,855 21,741 20,831 17,860
Provision
for loan
losses 20,064 1,439 704 4,809 1,195
-------- -------- -------- -------- --------
Net interest
income after
provision
for loan
losses 1,561 20,416 21,037 16,022 16,665
-------- -------- -------- -------- --------
Non-interest
income
Service
charges on
deposit
accounts 3,650 3,557 3,352 3,097 3,129
Other service
charges and
fees 1,513 1,698 1,699 1,654 1,294
Data
processing
fees 256 239 225 210 165
Mortgage
lending
income 629 695 706 741 385
Mortgage
servicing
income 199 206 217 231 --
Insurance
commissions 155 164 184 272 149
Income from
title services 145 141 189 168 138
Increase
in cash
value of life
insurance 471 544 513 585 626
Dividends
from FHLB,
FRB &
bankers' bank 126 194 227 281 259
Equity in
earnings
of
unconsolidated
affiliate -- -- -- 102 37
Gain on
sale of
equity
investment -- -- -- 6,102 --
Gain on sale
of SBA loans -- 26 -- 101 --
Gain (loss)
on sale
of premises
& equip, net 105 -- -- (2) (14)
Gain (loss)
on OREO, net (2,422) (28) (50) (380) 54
Gain (loss) on
securities,
net (3,860) -- (2,067) -- --
Other income 765 348 472 372 432
-------- -------- -------- -------- --------
Total
non-interest
income 1,732 7,784 5,667 13,534 6,654
-------- -------- -------- -------- --------
Non-interest
expense
Salaries and
employee
benefits 8,618 8,739 8,931 9,278 7,560
Occupancy and
equipment 2,800 2,825 2,726 2,702 2,461
Data
processing
expense 942 815 833 786 690
Other
operating
expenses 7,699 6,099 6,007 5,917 4,967
-------- -------- -------- -------- --------
Total
non-interest
expense 20,059 18,478 18,497 18,683 15,678
-------- -------- -------- -------- --------
(Loss) income
before income
taxes (16,766) 9,722 8,207 10,873 7,641
Income tax
(benefit)
expense (7,386) 3,158 2,553 3,595 2,246
-------- -------- -------- -------- --------
Net (loss)
income $ (9,380) $ 6,564 $ 5,654 $ 7,278 $ 5,395
======== ======== ======== ======== ========
(In thousands) Year Ended
---------------- --------------------------
Dec. 31, Dec. 31,
2008 2007
----- -----
Interest income
Loans $ 127,812 $ 120,067
Investment securities
Taxable 12,610 17,003
Tax-exempt 4,850 4,187
Deposits - other banks 133 166
Federal funds sold 313 342
--------- ---------
Total interest income 145,718 141,765
--------- ---------
Interest expense
Interest on deposits 45,593 56,232
Federal funds purchased 182 816
FHLB borrowed funds 9,255 8,982
Securities sold under
agreements to repurchase 1,522 4,746
Subordinated debentures 3,114 3,002
--------- ---------
Total interest expense 59,666 73,778
--------- ---------
Net interest income 86,052 67,987
Provision for loan losses 27,016 3,242
--------- ---------
Net interest income after
provision for loan losses 59,036 64,745
--------- ---------
Non-interest income
Service charges on deposit accounts 13,656 11,202
Other service charges and fees 6,564 5,470
Data processing fees 930 784
Mortgage lending income 2,771 1,662
Mortgage servicing income 853 --
Insurance commissions 775 762
Income from title services 643 713
Increase in cash value
of life insurance 2,113 2,448
Dividends from FHLB, FRB &
bankers' bank 828 911
Equity in earnings of
unconsolidated affiliate 102 (86)
Gain on sale of equity investment 6,102 --
Gain on sale of SBA loans 127 170
Gain (loss) on sale of premises
& equip, net 103 136
Gain (loss) on OREO, net (2,880) 251
Gain (loss) on securities, net (5,927) --
Other income 1,957 1,331
--------- ---------
Total non-interest income 28,717 25,754
--------- ---------
Non-interest expense
Salaries and employee benefits 35,566 30,496
Occupancy and equipment 11,053 9,459
Data processing expense 3,376 2,648
Other operating expenses 25,722 18,932
--------- ---------
Total non-interest expense 75,717 61,535
--------- ---------
(Loss) income
before income taxes 12,036 28,964
Income tax
(benefit) expense 1,920 8,519
--------- ---------
Net (loss) income $ 10,116 $ 20,445
========= =========
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
(Dollars and shares in thousands,
except per share data)
---------------------------------
Quarter Ended
-----------------------------------------------
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
2008 2008 2008 2008 2007
-------- -------- -------- -------- --------
PER SHARE DATA
--------------
(Adjusted for 8% Stock Dividend)
Diluted (loss)
earnings
per share $ (0.46) $ 0.32 $ 0.28 $ 0.36 $ 0.28
Diluted cash
(loss) earnings
per share (0.45) 0.34 0.29 0.37 0.30
Basic (loss)
earnings
per share (0.47) 0.32 0.29 0.37 0.29
Dividends per
share - common 0.065 0.060 0.051 0.046 0.042
Book value per
common share 14.25 14.68 14.53 14.46 13.58
Tangible book
value per
common share 11.40 11.80 11.64 11.55 11.16
STOCK INFORMATION
-----------------
(Adjusted for 8% Stock Dividend)
Average common
shares
outstanding 19,840 19,814 19,810 19,802 18,626
Average diluted
shares
outstanding 20,340 20,323 20,298 20,295 18,941
End of period
common shares
outstanding 19,860 19,823 19,810 19,804 18,630
ANNUALIZED PERFORMANCE RATIOS
-----------------------------
Return on
average assets -1.43% 1.00% 0.89% 1.15% 0.94%
Cash return on
average assets -1.41% 1.07% 0.95% 1.22% 1.01%
Return on
average equity -12.80% 9.02% 7.91% 10.35% 8.56%
Cash return on
average
tangible equity -15.43% 11.72% 10.38% 13.53% 10.98%
Efficiency ratio 80.96% 59.25% 64.04% 51.94% 60.54%
Net interest
margin - FTE 3.78% 3.82% 3.89% 3.78% 3.61%
Fully taxable
equivalent
adjustment 848 768 752 716 659
RECONCILIATION OF CASH (LOSS) EARNINGS
--------------------------------------
(Adjusted for 8% Stock Dividend)
GAAP net (loss)
income $ (9,380) $ 6,564 $ 5,654 $ 7,278 $ 5,395
Intangible
amortization
after-tax 281 281 280 282 267
-------- -------- -------- -------- --------
Cash (loss)
earnings $ (9,099) $ 6,845 $ 5,934 $ 7,560 $ 5,662
======== ======== ======== ======== ========
GAAP diluted
(loss) earnings
per share $ (0.46) $ 0.32 $ 0.28 $ 0.36 $ 0.28
Intangible
amortization
after-tax 0.01 0.02 0.01 0.01 0.02
-------- -------- -------- -------- --------
Diluted cash
(loss) earnings
per share $ (0.45) $ 0.34 $ 0.29 $ 0.37 $ 0.30
======== ======== ======== ======== ========
OTHER OPERATING EXPENSES
------------------------
Advertising $ 669 $ 670 $ 691 $ 614 $ 836
Merger Expenses 1,775 -- -- -- --
Amortization of
intangibles 462 462 463 462 439
Amortization of
mortgage
servicing
rights 147 148 147 147 --
Electronic
banking expense 665 740 823 752 556
Directors' fees 275 254 231 231 226
Due from bank
service charges 89 73 82 62 52
FDIC and state
assessment 479 524 429 372 333
Insurance 241 244 235 228 218
Legal and
accounting 406 382 316 280 276
Mortgage
servicing
expense 77 59 74 87 --
Other
professional
fees 165 184 444 833 317
Operating
supplies 236 234 245 244 289
Postage 185 189 188 180 165
Telephone 199 238 233 231 263
Other expense 1,629 1,698 1,406 1,194 997
-------- -------- -------- -------- --------
Total other
operating
expenses $ 7,699 $ 6,099 $ 6,007 $ 5,917 $ 4,967
======== ======== ======== ======== ========
(Dollars and shares in thousands,
except per share data)
---------------------------------
Year Ended
--------------------
Dec. 31, Dec. 31,
2008 2007
-------- --------
PER SHARE DATA
--------------
(Adjusted for 8% Stock Dividend)
Diluted earnings
per share $ 0.50 $ 1.08
Diluted cash
earnings per
share 0.55 1.14
Basic earnings
per share 0.51 1.10
Dividends per
share - common 0.222 0.134
Book value per
common share 14.25 13.58
Tangible book
value per
common share 11.40 11.16
STOCK INFORMATION
-----------------
(Adjusted for 8% Stock Dividend)
Average common
shares
outstanding 19,816 18,614
Average diluted
shares
outstanding 20,313 18,927
End of period
common shares
outstanding 19,860 18,630
ANNUALIZED PERFORMANCE RATIOS
-----------------------------
Return on
average assets 0.39% 0.92%
Cash return on
average assets 0.44% 0.98%
Return on
average equity 3.51% 8.50%
Cash return on
average
tangible equity 4.88% 11.06%
Efficiency ratio 62.68% 62.10%
Net interest
margin - FTE 3.82% 3.52%
Fully taxable
equivalent
adjustment 3,084 2,526
RECONCILIATION OF CASH EARNINGS
-------------------------------
(Adjusted for 8% Stock Dividend)
GAAP net income $ 10,116 $ 20,445
Intangible
amortization
after-tax 1,124 1,068
-------- --------
Cash earnings $ 11,240 $ 21,513
======== ========
GAAP diluted
earnings per
share $ 0.50 $ 1.08
Intangible
amortization
after-tax 0.05 0.06
-------- --------
Diluted cash
earnings per
share $ 0.55 $ 1.14
======== ========
OTHER OPERATING EXPENSES
------------------------
Advertising $ 2,644 $ 2,691
Merger Expenses 1,775 --
Amortization of
intangibles 1,849 1,756
Amortization of
mortgage
servicing
rights 589 --
Electronic
banking expense 2,980 2,359
Directors' fees 991 843
Due from bank
service charges 307 214
FDIC and state
assessment 1,804 1,016
Insurance 947 901
Legal and
accounting 1,384 1,206
Mortgage
servicing
expense 297 --
Other
professional
fees 1,626 902
Operating
supplies 959 983
Postage 742 663
Telephone 901 951
Other expense 5,927 4,447
Total other
operating
expenses $ 25,722 $ 18,932
========= ========
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Dec. 31, Sep. 30, Jun. 30,
(Dollars in thousands) 2008 2008 2008
------------------------ ----- ----- -----
LOAN BALANCES
-------------
Real estate
Commercial real
estate loans
Non-farm/non-residential $ 816,603 $ 798,447 $ 787,824
Construction/land
development 320,398 339,691 353,415
Agricultural 23,603 25,097 24,033
Residential real estate loans
Residential 1-4 family 391,255 376,722 365,577
Multifamily residential 56,440 61,341 74,065
---------- ---------- ----------
Total real estate 1,608,299 1,601,298 1,604,914
Consumer 46,615 49,600 54,060
Commercial and industrial 255,153 255,933 238,870
Agricultural 23,625 38,431 33,794
Other 22,540 22,661 19,634
---------- ---------- ----------
Total loans receivable
before allowance
for loan losses 1,956,232 1,967,923 1,951,272
Allowance for loan losses 40,385 36,372 36,563
---------- ---------- ----------
Total loans receivable, net $1,915,847 $1,931,551 $1,914,709
========== ========== ==========
Loans to deposits 105.86% 102.87% 102.60%
ALLOWANCE FOR LOAN LOSSES
-------------------------
Balance, beginning of period $ 36,372 $ 36,563 $ 37,075
Loans charged off 16,141 1,673 2,483
Recoveries of loans
previously charged off 90 43 1,267
---------- ---------- ----------
Net loans charged off 16,051 1,630 1,216
Provision for loan losses 20,064 1,439 704
Allowance for loan losses of
acquired institution -- -- --
---------- ---------- ----------
Balance, end of period $ 40,385 $ 36,372 $ 36,563
========== ========== ==========
Net charge-offs to average
loans 3.23% 0.33% 0.26%
Allowance for loan losses to
total loans 2.06% 1.85% 1.87%
NON-PERFORMING ASSETS
---------------------
Non-performing loans
Non-accrual loans $ 28,524 $ 15,571 $ 11,772
Loans past due 90 days
or more 1,374 490 446
---------- ---------- ----------
Total non-performing
loans 29,898 16,061 12,218
---------- ---------- ----------
Other non-performing assets
Foreclosed assets held
for sale 6,763 9,392 5,284
Non-accrual investments -- 3,860 3,860
Other non-performing assets 16 13 59
---------- ---------- ----------
Total other
non-performing assets 6,779 13,265 9,203
---------- ---------- ----------
Total non-performing
assets $ 36,677 $ 29,326 $ 21,421
========== ========== ==========
Allowance for loan losses to
non-performing loans 135.08% 226.46% 299.26%
Non-performing loans to
total loans 1.53% 0.82% 0.63%
Non-performing assets to
total assets 1.42% 1.11% 0.82%
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Mar. 31, Dec. 31,
(Dollars in thousands) 2008 2007
------------------------ ----- -----
LOAN BALANCES
-------------
Real estate
Commercial real estate loans
Non-farm/non-residential $ 765,881 $ 607,638
Construction/land development 341,442 367,422
Agricultural 24,739 22,605
Residential real estate loans
Residential 1-4 family 343,475 259,975
Multifamily residential 73,220 45,428
---------- ----------
Total real estate 1,548,757 1,303,068
Consumer 55,251 46,275
Commercial and industrial 224,756 219,062
Agricultural 17,559 20,429
Other 20,646 18,160
---------- ----------
Total loans receivable before
allowance for loan losses 1,866,969 1,606,994
Allowance for loan losses 37,075 29,406
---------- ----------
Total loans receivable, net $1,829,894 $1,577,588
========== ==========
Loans to deposits 100.66% 100.93%
ALLOWANCE FOR LOAN LOSSES
-------------------------
Balance, beginning of period $ 29,406 $ 28,636
Loans charged off 623 486
Recoveries of loans previously
charged off 101 61
---------- ----------
Net loans charged off 522 425
Provision for loan losses 4,809 1,195
Allowance for loan losses of
acquired institution 3,382 --
---------- ----------
Balance, end of period $ 37,075 $ 29,406
========== ==========
Net charge-offs to average loans 0.11% 0.11%
Allowance for loan losses to total loans 1.99% 1.83%
NON-PERFORMING ASSETS
---------------------
Non-performing loans
Non-accrual loans $ 12,033 $ 2,952
Loans past due 90 days or more -- 301
---------- ----------
Total non-performing loans 12,033 3,253
---------- ----------
Other non-performing assets
Foreclosed assets held for sale 5,097 5,083
Non-accrual investments -- --
Other non-performing assets 27 15
---------- ----------
Total other non-performing assets 5,124 5,098
---------- ----------
Total non-performing assets $ 17,157 $ 8,351
========== ==========
Allowance for loan losses to
non-performing loans 308.11% 903.97%
Non-performing loans to total loans 0.64% 0.20%
Non-performing assets to total assets 0.67% 0.36%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
(Dollars in thousands)
---------------------
Three Months Ended
---------------------------------------------------------
December 31, 2008 September 30, 2008
---------------------------- ---------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
---------- --------- ------ ---------- --------- ------
ASSETS
------
Earning
assets
Interest-
bearing
balances
due from
banks $ 5,381 $ 6 0.44% $ 6,882 $ 35 2.02%
Federal
funds
sold 12,078 24 0.79% 5,196 24 1.84%
Invest-
ment
securities
- taxable 249,614 2,870 4.57% 266,400 2,982 4.45%
Investment
securi-
ties -
non-tax-
able -
FTE 117,278 2,003 6.79% 113,222 1,925 6.76%
Loans
receiv-
able
- FTE 1,979,358 30,639 6.16% 1,964,267 31,890 6.46%
---------- ------- ---------- -------
Total
interest-
earning
assets 2,363,709 35,542 5.98% 2,355,967 36,856 6.22%
------- -------
Non-earning
assets 252,327 247,510
---------- ----------
Total
assets $2,616,036 $2,603,477
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities
Interest-bearing liabilities
Savings
and
interest-
bearing
transaction
accounts $ 681,991 $ 1,914 1.12% $ 690,564 $ 2,651 1.53%
Time
deposits 966,149 7,786 3.21% 940,558 8,101 3.43%
---------- -------- ---------- -------
Total
interest-
bearing
depo-
sits 1,648,140 9,700 2.34% 1,631,122 10,752 2.62%
Federal
funds
purchased 5,320 14 1.05% 16,044 79 1.96%
Securi-
ties
sold
under
agree-
ment to
repur-
chase 107,782 173 0.64% 111,829 394 1.40%
FHLB
borrowed
funds 263,261 2,382 3.60% 254,230 2,239 3.50%
Subordi-
nated
deben-
tures 47,588 800 6.69% 47,611 769 6.43%
---------- -------- ---------- -------
Total
interest-
bearing
liabil-
ities 2,072,091 13,069 2.51% 2,060,836 14,233 2.75%
-------- --------
Non-
interest
bearing
liabil-
ities
Non-
interest
bearing
deposits 238,684 242,155
Other
liabil-
ities 13,836 10,961
---------- ----------
Total
liabil-
ities 2,324,611 2,313,952
Share-
holders'
equity 291,425 289,525
---------- ----------
Total
liabil-
ities
and
share-
holders'
equity $2,616,036 $2,603,477
========== ==========
Net
interest
spread 3.47% 3.47%
Net
interest
income
and
margin -
FTE $ 22,473 3.78% $ 22,623 3.82%
======== ========
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
(Dollars in thousands)
---------------------
Years Ended
---------------------------------------------------------
December 31, 2008 December 31, 2007
---------------------------- ---------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
---------- --------- ------ ---------- --------- ------
ASSETS
------
Earning
assets
Interest-
bearing
balances
due from
banks $ 5,691 $ 133 2.34% $ 3,235 $ 166 5.13%
Federal
funds
sold 14,745 313 2.12% 6,683 342 5.12%
Investment
securi-
ties -
taxable 279,152 12,610 4.52% 371,893 17,003 4.57%
Investment
securi-
ties -
non-
taxable
- FTE 112,724 7,649 6.79% 98,539 6,468 6.56%
Loans
receivable
- FTE 1,922,861 128,097 6.66% 1,521,881 120,312 7.91%
---------- -------- ---------- --------
Total
interest-
earning
assets 2,335,173 148,802 6.37% 2,002,231 144,291 7.21%
-------- --------
Non-
earning
assets 249,767 231,114
---------- ----------
Total
assets $2,584,940 $2,233,345
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities
Interest-
bearing
liabil-
ities
Savings
and
interest-
bearing
trans-
action
accounts $ 684,234 $ 10,736 1.57% $ 591,874 $ 17,032 2.88%
Time
deposits 937,270 34,857 3.72% 807,765 39,200 4.85%
---------- -------- ---------- --------
Total
interest-
bearing
depo-
sits 1,621,504 45,593 2.81% 1,399,639 56,232 4.02%
Federal
funds
pur-
chased 7,850 182 2.32% 15,538 816 5.25%
Securities
sold
under
agree-
ment to
repur-
chase 111,398 1,522 1.37% 121,751 4,746 3.90%
FHLB
borrowed
funds 259,162 9,255 3.57% 183,248 8,982 4.90%
Subordi-
nated
deben-
tures 47,622 3,114 6.54% 44,620 3,002 6.73%
---------- -------- ---------- --------
Total
interest-
bearing
liabil-
ities 2,047,536 59,666 2.91% 1,764,796 73,778 4.18%
-------- --------
Non-
interest
bearing
liabil-
ities
Non-
interest
bearing
depo-
sits 236,009 215,212
Other
liabil-
ities 13,568 12,781
---------- ----------
Total
liabil-
ities 2,297,113 1,992,789
Share-
holders'
equity 287,827 240,556
---------- ----------
Total
liabil-
ities
and
share-
holders'
equity $2,584,940 $2,233,345
========== ==========
Net
interest
spread 3.46% 3.03%
Net
interest
income
and
margin -
FTE $ 89,136 3.82% $ 70,513 3.52%
======== ========