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% ==========