CONWAY, Ark., April 19, 2007 (PRIME NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB) today announced record first quarter earnings of $4.8 million, or $0.27 diluted earnings per share for the quarter ended March 31, 2007, compared to earnings of $3.5 million, or $0.24 diluted earnings per share for the same period in 2006. This represents a $1.3 million, or 35.4% increase in the 2007 earnings over 2006.
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 $0.29 and $0.26 for the first quarter of 2007 and 2006, respectively.
"The first quarter of 2007 was a great quarter for our Company," said John W. Allison, Chairman and Chief Executive Officer. "Anytime you have record first quarter earnings and strong loan growth combined with a steady net interest margin, you have to be proud."
Operating Highlights
Net interest income for the first quarter of 2007 increased 8.5% to $16.1 million compared to $14.8 million for the first quarter of 2006. Net interest margin, on a fully taxable equivalent basis, was 3.42% in the quarter just ended compared to 3.53% in the first quarter of 2006, a decrease of eleven basis points. The Company's first quarter 2007 net interest margin of 3.42% was unchanged from the fourth quarter of 2006. During 2006, competitive pressures and a slightly inverted yield curve put pressure on the Company's net interest margin. While the current competitive pressures have eased somewhat during 2007, the Company's net interest margin on a linked quarter basis was still projected to decline as a result of the $35 million purchase of bank owned life insurance late in the fourth quarter of 2006. Yet, the Company was able to rise above this expectation by achieving strong loan growth that was funded by both the run off in the investment portfolio and more reasonably priced interest-bearing liabilities.
Non-interest income for the first quarter of 2007 was $6.2 million compared with $4.4 million for the first quarter of 2006, a 41.0% increase. The increase in non-interest income is the result of various items including organic growth, particularly from service charges on deposits; an increase in other service charges and fees related to our improved position to retain more of the interchange fees on our electronic banking transactions and benefits associated with our recent purchase of bank owned life insurance.
Non-interest expense for the first quarter of 2007 was $14.7 million compared with $13.6 million for the first quarter of 2006, an increase of 8.2%. The increase is the result of the continued expansion of the Company combined with the normal increased cost of doing business.
Financial Condition
Total loans were $1.48 billion at March 31, 2007 compared to $1.25 billion at March 31, 2006, an increase of 18.4%. Total deposits were $1.63 billion at March 31, 2007 compared to $1.51 billion at March 31, 2006, an increase of 8.0%. Total assets were $2.20 billion at March 31, 2007, an 11.8% increase from $1.97 billion at March 31, 2006.
Nonperforming loans as a percent of total loans improved to 0.42% as of March 31, 2007 when compared to 0.66% as of March 31, 2006. Nonperforming assets as a percent of total assets were 0.30% as of March 31, 2007 compared to 0.45% as of March 31, 2006.
The Company's allowance for loan losses was $26.9 million at March 31, 2007, or 1.83% of total loans, compared to $24.4 million, or 1.96% of total loans, at March 31, 2006. As of March 31, 2007, the Company's allowance for loan losses equaled 436% of its total nonperforming loans compared to 297% as of March 31, 2006.
Stockholders' equity was $236.9 million at March 31, 2007 compared to $169.0 million at March 31, 2006, an increase of 40.1%. Book value per common share was $13.75 at March 31, 2007 compared to book value per common share with preferred converted to common of $11.83 at March 31, 2006, a 16.2% 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 during 2006, and retained earnings during the prior twelve months.
Branch Expansion
During 2007, the Company opened its second branch location in the Florida community of Key West. Presently, the Company has one pending Florida de novo branch location in Key Largo scheduled to open in 2007 and has plans for four additional de novo branch locations in the Arkansas communities of Searcy (2), Bryant, and Quitman.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CST (2:00 EST) on Thursday, April 19, 2007. 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: 235356, which will be available until April 26, 2007 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 10-K 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)
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(In thousands) 2007 2006 2006 2006 2006
------------- ---------- ---------- ---------- ---------- ----------
ASSETS
------
Cash and due
from banks $ 57,998 $ 53,004 $ 45,216 $ 50,516 $ 42,700
Interest-
bearing
deposits
with other
banks 2,962 6,696 831 1,406 5,323
---------- ---------- ---------- ---------- ----------
Cash and
cash
equivalents 60,960 59,700 46,047 51,922 48,023
Federal
funds
sold 10,685 9,003 31,081 11,102 19,558
Investment
securities
- available
for sale 476,534 531,891 509,203 515,063 525,257
Loans
receivable 1,475,376 1,416,295 1,387,279 1,328,351 1,246,146
Allowance
for loan
losses (26,934) (26,111) (25,952) (25,245) (24,435)
---------- ---------- ---------- ---------- ----------
Loans
receivable,
net 1,448,442 1,390,184 1,361,327 1,303,106 1,221,711
Bank
premises and
equipment,
net 60,751 57,339 54,407 52,556 52,376
Foreclosed
assets held
for sale 327 435 732 611 663
Cash value
of life
insurance 42,746 42,149 7,008 6,954 6,900
Investments
in
unconsolidated
affiliates 12,336 12,449 12,609 12,634 12,689
Accrued
interest
receivable 14,331 13,736 13,894 12,587 11,540
Deferred tax
asset, net 8,455 8,361 9,043 11,903 9,433
Goodwill 37,527 37,527 37,527 37,527 37,527
Core deposit
and other
intangibles 9,019 9,458 9,897 10,336 10,775
Other assets 21,463 18,416 20,723 17,186 14,458
---------- ---------- ---------- ---------- ----------
Total
assets $2,203,576 $2,190,648 $2,113,498 $2,043,487 $1,970,910
========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities
Deposits:
Demand and
non-interest-
bearing $ 228,716 $ 215,142 $ 218,846 $ 230,818 $ 225,340
Savings and
interest-
bearing
transaction
accounts 606,593 582,425 532,579 531,319 538,860
Time
deposits 792,951 809,627 806,108 757,070 743,243
---------- ---------- ---------- ---------- ----------
Total
deposits 1,628,260 1,607,194 1,557,533 1,519,207 1,507,443
Federal funds
purchased 25,450 25,270 -- 10,005 --
Securities
sold under
agreements
to
repurchase 128,335 118,825 116,339 121,826 98,545
FHLB and
other
borrowed
funds 127,842 151,768 157,117 126,319 139,305
Accrued
interest
payable and
other
liabilities 12,192 11,509 12,233 11,069 11,846
Subordinated
debentures 44,640 44,663 44,686 44,708 44,731
---------- ---------- ---------- ---------- ----------
Total
liabilities 1,966,719 1,959,229 1,887,908 1,833,134 1,801,870
---------- ---------- ---------- ---------- ----------
Stockholders'
equity
Preferred
stock A -- -- -- 21 21
Preferred
stock B -- -- -- 2 2
Common stock 172 172 172 146 121
Capital
surplus 194,930 194,595 194,406 187,847 146,638
Retained
earnings 45,875 41,544 37,496 33,687 30,449
Accumulated
other
comprehensive
loss (4,120) (4,892) (6,484) (11,350) (8,191)
---------- ---------- ---------- ---------- ----------
Total
stockholders'
equity 236,857 231,419 225,590 210,353 169,040
---------- ---------- ---------- ---------- ----------
Total
liabilities
and
stockholders'
equity $2,203,576 $2,190,648 $2,113,498 $2,043,487 $1,970,910
========== ========== ========== ========== ==========
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended
------------------------------------------------
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(In thousands) 2007 2006 2006 2006 2006
-------------- -------- -------- -------- -------- --------
Interest income
Loans $ 28,288 $ 27,559 $ 26,748 $ 24,003 $ 21,842
Investment
securities
Taxable 4,586 4,705 4,738 4,711 4,725
Tax-exempt 1,026 938 883 965 967
Deposits - other
banks 49 36 38 24 41
Federal funds sold 235 447 51 183 159
-------- -------- -------- -------- --------
Total interest
income 34,184 33,685 32,458 29,886 27,734
-------- -------- -------- -------- --------
Interest expense
Interest on
deposits 14,133 13,530 12,010 11,144 9,529
Federal funds
purchased 205 53 178 154 304
FHLB and other
borrowed funds 1,811 1,840 1,825 1,486 1,476
Securities sold
under agreements
to repurchase 1,224 1,298 1,258 994 870
Subordinated
debentures 749 746 751 745 749
-------- -------- -------- -------- --------
Total interest
expense 18,122 17,467 16,022 14,523 12,928
-------- -------- -------- -------- --------
Net interest income 16,062 16,218 16,436 15,363 14,806
Provision for
loan losses 820 584 649 590 484
-------- -------- -------- -------- --------
Net interest
income after
provision for
loan losses 15,242 15,634 15,787 14,773 14,322
-------- -------- -------- -------- --------
Non-interest income
Service charges
on deposit
accounts 2,588 2,778 2,354 2,263 2,052
Other service
charges and fees 1,500 906 541 584 611
Trust fees 24 184 166 169 152
Data processing
fees 218 176 215 215 193
Mortgage banking
income 348 451 435 439 411
Insurance
commissions 289 140 153 205 284
Income from title
services 156 205 233 282 237
Increase in cash
value of life
insurance 598 143 55 55 51
Dividends from
FHLB, FRB &
bankers' bank 227 219 180 154 106
Equity in loss of
unconsolidated
affiliate (114) (166) (65) (32) (116)
Gain on sale of
SBA loans -- 38 -- -- 34
Gain on sale of
premises and
equipment, net 14 6 129 26 2
Gain (loss) on
sale of
securities, net -- -- -- 1 --
Other income 357 349 302 238 384
-------- -------- -------- -------- --------
Total non-interest
income 6,205 5,429 4,698 4,599 4,401
-------- -------- -------- -------- --------
Non-interest
expense
Salaries and
employee benefits 7,440 7,190 7,376 7,399 7,348
Occupancy and
equipment 2,210 2,361 2,223 2,123 2,005
Data processing
expense 644 618 651 670 567
Other operating
expenses 4,447 4,310 3,987 3,951 3,699
-------- -------- -------- -------- --------
Total non-interest
expense 14,741 14,479 14,237 14,143 13,619
-------- -------- -------- -------- --------
Income before taxes 6,706 6,584 6,248 5,229 5,104
Income tax expense 1,945 2,106 1,960 1,593 1,588
-------- -------- -------- -------- --------
Net income $ 4,761 $ 4,478 $ 4,288 $ 3,636 $ 3,516
======== ======== ======== ======== ========
Three Months Ended
--------------------
Mar. 31, Mar. 31,
(In thousands) 2007 2006
-------------- -------- --------
Interest income
Loans $ 28,288 $ 21,842
Investment securities
Taxable 4,586 4,725
Tax-exempt 1,026 967
Deposits - other banks 49 41
Federal funds sold 235 159
-------- --------
Total interest income 34,184 27,734
-------- --------
Interest expense
Interest on deposits 14,133 9,529
Federal funds purchased 205 304
FHLB and other borrowed funds 1,811 1,476
Securities sold under
agreements to repurchase 1,224 870
Subordinated debentures 749 749
-------- --------
Total interest expense 18,122 12,928
-------- --------
Net interest income 16,062 14,806
Provision for loan losses 820 484
-------- --------
Net interest income after
provision for loan losses 15,242 14,322
-------- --------
Non-interest income
Service charges on deposit accounts 2,588 2,052
Other service charges and fees 1,500 611
Trust fees 24 152
Data processing fees 218 193
Mortgage banking income 348 411
Insurance commissions 289 284
Income from title services 156 237
Increase in cash value of life insurance 598 51
Dividends from FHLB, FRB & bankers' bank 227 106
Equity in loss of unconsolidated affiliate (114) (116)
Gain on sale of SBA loans -- 34
Gain on sale of premises and equipment, net 14 2
Gain (loss) on sale of securities, net -- --
Other income 357 384
-------- --------
Total non-interest income 6,205 4,401
-------- --------
Non-interest expense
Salaries and employee benefits 7,440 7,348
Occupancy and equipment 2,210 2,005
Data processing expense 644 567
Other operating expenses 4,447 3,699
-------- --------
Total non-interest expense 14,741 13,619
-------- --------
Income before taxes 6,706 5,104
Income tax expense 1,945 1,588
-------- --------
Net income $ 4,761 $ 3,516
======== ========
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter Ended
------------------------------------------------
(Dollars and shares
in thousands,
except per share Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
data) 2007 2006 2006 2006 2006
------------------- -------- -------- -------- -------- --------
PER SHARE DATA
--------------
Diluted earnings per
share $ 0.27 $ 0.26 $ 0.25 $ 0.25 $ 0.24
Diluted cash
earnings per share 0.29 0.28 0.26 0.27 0.26
Basic earnings per
share 0.28 0.25 0.26 0.28 0.28
Dividends per share
- common 0.025 0.025 0.025 0.020 0.020
Book value per
common share 13.75 13.45 13.12 12.49 11.68
Book value per
common share with
preferred converted
to common 13.75 13.45 13.12 12.52 11.83
Tangible book value
per common share 11.05 10.72 10.36 9.23 7.70
Tangible book value
per common share
with preferred
converted to common 11.05 10.72 10.36 9.67 8.45
STOCK INFORMATION
-----------------
Average common
shares outstanding 17,219 17,202 16,361 12,224 12,123
Average diluted
shares outstanding 17,501 17,438 17,291 14,530 14,392
End of period common
shares outstanding 17,222 17,206 17,196 14,647 12,129
End of period common
shares outstanding
with preferred
converted to common 17,222 17,206 17,196 16,807 14,289
Dividends paid on
preferred stock -- -- 49 155 155
ANNUALIZED PERFORMANCE RATIOS
-----------------------------
Return on average
assets 0.88% 0.83% 0.83% 0.73% 0.74%
Cash return on
average assets 0.95% 0.90% 0.90% 0.81% 0.81%
Return on average
equity 8.30% 7.82% 7.81% 8.56% 8.51%
Cash return on
average tangible
equity 10.96% 10.46% 10.61% 12.80% 12.86%
Efficiency ratio 62.52% 63.10% 63.72% 66.74% 66.68%
Net interest margin
- FTE 3.42% 3.42% 3.57% 3.52% 3.53%
Fully taxable
equivalent
adjustment 610 553 521 572 583
RECONCILIATION OF CASH EARNINGS
-------------------------------
GAAP net income 4,761 4,478 4,288 3,636 3,516
Intangible
amortization
after-tax 267 267 267 267 258
-------- -------- -------- -------- --------
Cash earnings 5,028 4,745 4,555 3,903 3,774
======== ======== ======== ======== ========
GAAP diluted
earnings per share 0.27 0.26 0.25 0.25 0.24
Intangible
amortization
after-tax 0.02 0.02 0.01 0.02 0.02
-------- -------- -------- -------- --------
Diluted cash
earnings per share 0.29 0.28 0.26 0.27 0.26
======== ======== ======== ======== ========
OTHER OPERATING EXPENSES
------------------------
Advertising $ 629 $ 645 $ 568 $ 612 $ 558
Amortization of
intangibles 439 439 439 439 425
Electronic banking
expense 530 359 152 160 118
Directors' fees 174 165 203 202 204
Due from bank
service charges 56 86 91 84 70
FDIC and state
assessment 260 133 142 127 125
Insurance 244 289 285 233 223
Legal and accounting 319 278 191 274 282
Other professional
fees 170 284 204 149 134
Operating supplies 226 256 202 253 229
Postage 164 163 171 166 163
Telephone 228 220 251 284 220
Other expense 1,008 993 1,088 968 948
-------- -------- -------- -------- --------
Total other
operating
expenses $ 4,447 $ 4,310 $ 3,987 $ 3,951 $ 3,699
======== ======== ======== ======== ========
Three Months Ended
--------------------
Mar. 31, Mar. 31,
2007 2006
-------- --------
PER SHARE DATA
--------------
Diluted earnings per share $ 0.27 $ 0.24
Diluted cash earnings per share 0.29 0.26
Basic earnings per share 0.28 0.28
Dividends per share - common 0.025 0.020
Book value per common share 13.75 11.68
Book value per common share with
preferred converted to common 13.75 11.83
Tangible book value per common share 11.05 7.70
Tangible book value per common share with
preferred converted to common 11.05 8.45
STOCK INFORMATION
-----------------
Average common shares outstanding 17,219 12,123
Average diluted shares outstanding 17,501 14,392
End of period common shares outstanding 17,222 12,129
End of period common shares outstanding with
preferred converted to common 17,222 14,289
Dividends paid on preferred stock -- 155
ANNUALIZED PERFORMANCE RATIOS
-----------------------------
Return on average assets 0.88% 0.74%
Cash return on average assets 0.95% 0.81%
Return on average equity 8.30% 8.51%
Cash return on average tangible equity 10.96% 12.86%
Efficiency ratio 62.52% 66.68%
Net interest margin - FTE 3.42% 3.53%
Fully taxable equivalent adjustment 610 583
RECONCILIATION OF CASH EARNINGS
-------------------------------
GAAP net income 4,761 3,516
Intangible amortization after-tax 267 258
-------- --------
Cash earnings 5,028 3,774
======== ========
GAAP diluted earnings per share 0.27 0.24
Intangible amortization after-tax 0.02 0.02
-------- --------
Diluted cash earnings per share 0.29 0.26
======== ========
OTHER OPERATING EXPENSES
------------------------
Advertising $ 629 $ 558
Amortization of intangibles 439 425
Electronic banking expense 530 118
Directors' fees 174 204
Due from bank service charges 56 70
FDIC and state assessment 260 125
Insurance 244 223
Legal and accounting 319 282
Other professional fees 170 134
Operating supplies 226 229
Postage 164 163
Telephone 228 220
Other expense 1,008 948
-------- --------
Total other operating expenses $ 4,447 $ 3,699
======== ========
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
(Dollars in Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
thousands) 2007 2006 2006 2006 2006
------------ ---------- ---------- ---------- ---------- ----------
LOAN BALANCES
-------------
Real estate
Commercial
real estate
loans
Non-farm/
non-
residen-
tial $ 519,680 $ 465,306 $ 454,227 $ 424,645 $ 422,618
Construction/
land
development 369,022 393,410 394,036 379,820 331,532
Agricultural 33,245 11,659 11,598 12,805 13,197
Residential
real estate
loans
Residential
1-4 family 231,788 229,588 228,347 226,129 220,273
Multifamily
residential 39,329 37,440 34,527 35,017 36,425
---------- ---------- ---------- ---------- ----------
Total real
estate 1,193,064 1,137,403 1,122,735 1,078,416 1,024,045
Consumer 42,345 45,056 43,716 41,920 39,599
Commercial
and industrial 205,531 206,559 181,673 173,715 166,025
Agricultural 16,986 13,520 26,439 22,665 8,287
Other 17,450 13,757 12,716 11,635 8,190
---------- ---------- ---------- ---------- ----------
Total loans
receivable
before
allowance
for loan
losses 1,475,376 1,416,295 1,387,279 1,328,351 1,246,146
Allowance for
loan losses 26,934 26,111 25,952 25,245 24,435
---------- ---------- ---------- ---------- ----------
Total loans
receivable,
net $1,448,442 $1,390,184 $1,361,327 $1,303,106 $1,221,711
========== ========== ========== ========== ==========
Loans to
deposits 90.61% 88.12% 89.07% 87.44% 82.67%
ALLOWANCE FOR LOAN LOSSES
-------------------------
Balance,
beginning of
period $ 26,111 $ 25,952 $ 25,245 $ 24,435 $ 24,175
Loans charged
off 100 529 210 289 486
Recoveries of
loans
previously
charged off 103 104 268 509 262
---------- ---------- ---------- ---------- ----------
Net
(recoveries)
loans
charged off (3) 425 (58) (220) 224
Provision for
loan losses 820 584 649 590 484
---------- ---------- ---------- ---------- ----------
Balance, end
of period $ 26,934 $ 26,111 $ 25,952 $ 25,245 $ 24,435
========== ========== ========== ========== ==========
Net (recoveries)
charge-offs
to average
loans 0.00% 0.12% -0.02% -0.07% 0.07%
Allowance for
loan losses
to total
loans 1.83% 1.84% 1.87% 1.90% 1.96%
NON-PERFORMING ASSETS
---------------------
Non-performing
loans
Non-accrual
loans $ 5,059 $ 3,905 $ 5,347 $ 6,697 $ 7,824
Loans past
due 90 days
or more 1,116 641 879 1,208 411
---------- ---------- ---------- ---------- ----------
Total
non-performing
loans 6,175 4,546 6,226 7,905 8,235
---------- ---------- ---------- ---------- ----------
Other non-
performing
assets
Foreclosed
assets held
for sale 327 435 732 611 663
Other non-
performing
assets 1 13 15 -- 4
---------- ---------- ---------- ---------- ----------
Total other
non-performing
assets 328 448 747 611 667
---------- ---------- ---------- ---------- ----------
Total non-
performing
assets $ 6,503 $ 4,994 $ 6,973 $ 8,516 $ 8,902
========== ========== ========== ========== ==========
Allowance for
loan losses
to non-
performing
loans 436.18% 574.37% 416.83% 319.35% 296.72%
Non-performing
loans to
total loans 0.42% 0.32% 0.45% 0.60% 0.66%
Non-performing
assets to
total assets 0.30% 0.23% 0.33% 0.42% 0.45%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
March 31, 2007
--------------------------------
Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate
---------- ---------- ------
ASSETS
------
Earning assets
Interest-bearing balances
due from banks $ 3,793 $ 49 5.24%
Federal funds sold 18,031 235 5.29%
Investment securities -
taxable 407,373 4,586 4.57%
Investment securities -
non-taxable - FTE 97,785 1,581 6.56%
Loans receivable - FTE 1,450,789 28,343 7.92%
---------- ----------
Total interest-earning
assets 1,977,771 34,794 7.13%
----------
Non-earning assets 219,924
----------
Total assets $2,197,695
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities
Interest-bearing
liabilities
Interest-bearing
transaction and savings
deposits $ 592,101 $ 4,335 2.97%
Time deposits 820,942 9,798 4.84%
---------- ----------
Total interest-bearing
deposits 1,413,043 14,133 4.06%
Federal funds purchased 15,397 205 5.40%
Securities sold under
agreement to repurchase 115,754 1,224 4.29%
FHLB and other borrowed
funds 148,897 1,811 4.93%
Subordinated debentures 44,654 749 6.80%
---------- ----------
Total interest-bearing
liabilities 1,737,745 18,122 4.23%
----------
Non-interest bearing
liabilities
Non-interest-bearing
deposits 214,461
Other liabilities 12,718
----------
Total liabilities 1,964,924
Shareholders' equity 232,771
----------
Total liabilities and
shareholders' equity $2,197,695
==========
Net interest spread 2.90%
Net interest income and
margin - FTE $ 16,672 3.42%
==========
Three Months Ended
December 31, 2006
--------------------------------
Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate
---------- ---------- ------
ASSETS
------
Earning assets
Interest-bearing balances
due from banks $ 3,004 $ 36 4.75%
Federal funds sold 34,080 447 5.20%
Investment securities -
taxable 431,131 4,705 4.33%
Investment securities -
non-taxable - FTE 88,391 1,447 6.49%
Loans receivable - FTE 1,388,843 27,603 7.89%
---------- ----------
Total interest-earning
assets 1,945,449 34,238 6.98%
----------
Non-earning assets 187,114
----------
Total assets $2,132,563
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities
Interest-bearing
liabilities
Interest-bearing
transaction and savings
deposits $ 549,138 $ 3,857 2.79%
Time deposits 809,312 9,673 4.74%
---------- ----------
Total interest-bearing
deposits 1,358,450 13,530 3.95%
Federal funds purchased 3,980 53 5.28%
Securities sold under
agreement to repurchase 123,023 1,298 4.19%
FHLB and other borrowed
funds 150,247 1,840 4.86%
Subordinated debentures 44,676 746 6.62%
---------- ----------
Total interest-bearing
liabilities 1,680,376 17,467 4.12%
----------
Non-interest bearing
liabilities
Non-interest-bearing
deposits 211,242
Other liabilities 13,708
----------
Total liabilities 1,905,326
Shareholders' equity 227,237
----------
Total liabilities and
shareholders' equity $2,132,563
==========
Net interest spread 2.86%
Net interest income and
margin - FTE $ 16,771 3.42%
==========
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
--------------------------------
March 31, 2007
--------------------------------
Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate
----------------------- ---------- ---------- ------
ASSETS
-------
Earning assets
Interest-bearing balances due
from banks $ 3,793 $ 49 5.24%
Federal funds sold 18,031 235 5.29%
Investment securities - taxable 407,373 4,586 4.57%
Investment securities - non-
taxable - FTE 97,785 1,581 6.56%
Loans receivable - FTE 1,450,789 28,343 7.92%
---------- ----------
Total interest-earning assets 1,977,771 34,794 7.13%
----------
Non-earning assets 219,924
----------
Total assets $2,197,695
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities
Interest-bearing liabilities
Interest-bearing transaction
and savings deposits $ 592,101 $ 4,335 2.97%
Time deposits 820,942 9,798 4.84%
---------- ----------
Total interest-bearing
deposits 1,413,043 14,133 4.06%
Federal funds purchased 15,397 205 5.40%
Securities sold under agreement
to repurchase 115,754 1,224 4.29%
FHLB and other borrowed funds 148,897 1,811 4.93%
Subordinated debentures 44,654 749 6.80%
---------- ----------
Total interest-bearing
liabilities 1,737,745 18,122 4.23%
----------
Non-interest bearing liabilities
Non-interest-bearing deposits 214,461
Other liabilities 12,718
----------
Total liabilities 1,964,924
Shareholders' equity 232,771
----------
Total liabilities and
shareholders' equity $2,197,695
==========
Net interest spread 2.90%
Net interest income and margin
- FTE $ 16,672 3.42%
==========
Three Months Ended
--------------------------------
March 31, 2006
--------------------------------
Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate
----------------------- ---------- ---------- ------
ASSETS
------
Earning assets
Interest-bearing balances due
from banks $ 3,706 $ 41 4.49%
Federal funds sold 14,477 159 4.45%
Investment securities - taxable 430,121 4,725 4.46%
Investment securities - non-
taxable - FTE 92,627 1,510 6.61%
Loans receivable - FTE 1,224,871 21,882 7.25%
---------- ----------
Total interest-earning assets 1,765,802 28,317 6.50%
----------
Non-earning assets 169,399
----------
Total assets $1,935,201
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities
Interest-bearing liabilities
Interest-bearing transaction
and savings deposits $ 520,287 $ 2,739 2.14%
Time deposits 715,790 6,790 3.85%
---------- ----------
Total interest-bearing deposits 1,236,077 9,529 3.13%
Federal funds purchased 26,469 304 4.66%
Securities sold under agreement
to repurchase 99,344 870 3.55%
FHLB and other borrowed funds 137,796 1,476 4.34%
Subordinated debentures 44,746 749 6.79%
---------- ----------
Total interest-bearing
liabilities 1,544,432 12,928 3.39%
----------
Non-interest bearing liabilities
Non-interest-bearing deposits 213,135
Other liabilities 10,067
----------
Total liabilities 1,767,634
Shareholders' equity 167,567
----------
Total liabilities and
shareholders' equity $1,935,201
==========
Net interest spread 3.11%
Net interest income and margin
- FTE 15,389 3.53%
==========