CONWAY, Ark., Oct. 18, 2007 (PRIME NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB) today announced a 21.9% increase in the third quarter 2007 earnings over the earnings for the same period last year. The record third quarter earnings were $5.2 million, or $0.30 diluted earnings per share for the quarter ended September 30, 2007, compared to earnings of $4.3 million, or $0.25 diluted earnings per share for the same period in 2006.
For the nine months ended September 30, 2007, net income totaled $15.1 million, a 31.6% increase over net income of $11.4 million for the first nine months of 2006. Diluted earnings per share for the first nine months of 2007 were $0.86, compared to $0.74 for the comparable period in 2006, an increase of $0.12 per share.
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 $0.31 and $0.26 for the third quarter of 2007 and 2006, respectively. Cash diluted earnings per share for the first nine months of 2007 were $0.90, compared to $0.79 for the comparable period in 2006, an increase of $0.11 per share.
"The third quarter for our Company couldn't have gone any better," said John W. Allison, Chairman and Chief Executive Officer. "The hard work of our partners, associates and boards of directors is proving to be successful. Their dedication has resulted in record earnings, strong loan growth, improving net interest margin and solid asset quality".
Operating Highlights
Net interest income for the third quarter of 2007 increased 5.4% to $17.3 million compared to $16.4 million for the third quarter of 2006. Net interest margin, on a fully taxable equivalent basis, was 3.55% in the quarter just ended compared to 3.57% in the third quarter of 2006, a modest decrease of two basis points. The Company's third quarter 2007 net interest margin of 3.55% reflected an increase of four basis points from the second quarter's 3.51%. During 2006, competitive pressures and a slightly inverted yield curve put pressure on the Company's net interest margin. The easing of competitive pressures during 2007 combined with the Company's strong loan growth which was partially funded by maturities in the investment portfolio have allowed the Company to improve net interest margin on a linked quarter basis.
Net interest income for the nine months ended September 30, 2007 increased 7.6% to $50.1 million compared to $46.6 million for the nine months ended September 30, 2006. The Company's net interest margin, on a fully taxable equivalent basis, for the nine months ended September 30, 2007 was 3.49%, a decrease of five basis points from 3.54% for the comparable period in 2006.
Non-interest income for the third quarter of 2007 was $6.3 million compared with $4.7 million for the third quarter of 2006, a 34.4% increase. Non-interest income for the nine months ended September 30, 2007 was $19.1 million compared to $13.7 million for the nine months ended September 30, 2006, a 39.4% 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 third quarter of 2007 was $15.6 million compared with $14.2 million for the third quarter of 2006, an increase of 9.6%. Non-interest expense for the nine months ended September 30, 2007 was $45.9 million compared to $42.0 million for the nine months ended September 30, 2006, a 9.2% increase. The increase is the result of the de novo expansion particularly in the Florida market combined with the normal increased cost of doing business.
Financial Condition
Total loans were $1.56 billion at September 30, 2007 compared to $1.39 billion at September 30, 2006, an increase of 12.5% or $173 million. Total deposits were $1.60 billion at September 30, 2007 compared to $1.56 billion at September 30, 2006, an increase of $41 million. Total assets were $2.27 billion at September 30, 2007, a $154 million increase from $2.11 billion at September 30, 2006.
Nonperforming loans as a percent of total loans was 0.17% as of September 30, 2007 compared to 0.45% as of September 30, 2006. Nonperforming assets as a percent of total assets were 0.34% as of September 30, 2007 compared to 0.33% as of September 30, 2006.
The Company's allowance for loan losses was $28.6 million at September 30, 2007, or 1.84% of total loans, compared to $26.0 million, or 1.87% of total loans, at September 30, 2006. As of September 30, 2007, the Company's allowance for loan losses equaled 1052% of its total nonperforming loans compared to 417% as of September 30, 2006.
Stockholders' equity was $246.6 million at September 30, 2007 compared to $225.6 million at September 30, 2006, an increase of 9.3%. Book value per common share was $14.30 at September 30, 2007 compared to $13.12 at September 30, 2006, a 9.0% increase.
Branch Expansion
During the first nine months of 2007, the Company opened six de novo branch locations. These branch locations are located in the Arkansas communities of Quitman, Searcy (2 branches), and Bryant plus Key West and Key Largo, Florida. Presently, the Company is evaluating additional opportunities and has plans for two additional de novo branch locations in Morrilton and Cabot, Arkansas.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CST (2:00 EST) on Thursday, October 18, 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: 255751, which will be available until October 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. As previously announced, the Corporation has entered into a definitive agreement to purchase Centennial Bancshares, Inc., Little Rock, Arkansas. This transaction is expected to close on January 1, 2008. Upon completion of this acquisition, the Corporation will own six wholly owned banks, four in the central Arkansas market. The Company's common stock is traded through the NASDAQ Global Select Market under the symbol "HOMB".
Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)
(In thousands)
-------------
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
2007 2007 2007 2006 2006
---------- ---------- ---------- ---------- ----------
ASSETS
Cash and
due from
banks $ 46,471 $ 51,110 $ 57,998 $ 53,004 $ 45,216
Interest-
bearing
deposits
with other
banks 2,573 2,431 2,962 6,696 831
---------- ---------- ---------- ---------- ----------
Cash and
cash equi-
valents 49,044 53,541 60,960 59,700 46,047
Federal
funds
sold 11,145 10,182 10,685 9,003 31,081
Investment
securities
- available
for sale 447,826 458,782 476,534 531,891 509,203
Loans re-
ceivable 1,560,374 1,525,013 1,475,376 1,416,295 1,387,279
Allowance
for loan
losses (28,636) (28,112) (26,934) (26,111) (25,952)
---------- ---------- ---------- ---------- ----------
Loans re-
ceivable,
net 1,531,738 1,496,901 1,448,442 1,390,184 1,361,327
Bank
premises
and
equipment,
net 66,770 64,656 60,751 57,339 54,407
Foreclosed
assets
held for
sale 4,915 182 327 435 732
Cash value
of life
insurance 47,468 46,862 42,746 42,149 7,008
Investments
in uncon-
solidated
affiliates 14,982 14,836 12,336 12,449 12,609
Accrued
interest
receivable 15,186 14,847 14,331 13,736 13,894
Deferred
tax asset,
net 9,499 11,023 8,455 8,361 9,043
Goodwill 37,527 37,527 37,527 37,527 37,527
Core de-
posit and
other in-
tangibles 8,141 8,580 9,019 9,458 9,897
Other
assets 23,431 22,002 21,463 18,416 20,723
---------- ---------- ---------- ---------- ----------
Total
assets $2,267,672 $2,239,921 $2,203,576 $2,190,648 $2,113,498
========== ========== ========== ========== ==========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Liabilities
Deposits:
Demand and
non-
interest-
bearing $ 217,666 $ 224,675 $ 228,716 $ 215,142 $ 218,846
Savings
and
interest-
bearing
trans-
action
accounts 569,797 612,853 606,593 582,425 532,579
Time
deposits 811,108 805,485 792,951 809,627 806,108
---------- ---------- ---------- ---------- ----------
Total de-
posits 1,598,571 1,643,013 1,628,260 1,607,194 1,557,533
Federal
funds
purchased 8,690 -- 25,450 25,270 --
Securities
sold under
agreements
to repur-
chase 131,007 127,392 128,335 118,825 116,339
FHLB and
other
borrowed
funds 226,028 175,455 127,842 151,768 157,117
Accrued
interest
payable and
other lia-
bilities 12,204 11,061 12,192 11,509 12,233
Subordi-
nated de-
bentures 44,595 44,618 44,640 44,663 44,686
---------- ---------- ---------- ---------- ----------
Total lia-
bilities 2,021,095 2,001,539 1,966,719 1,959,229 1,887,908
---------- ---------- ---------- ---------- ----------
Stockholders'
equity
Common
stock 172 172 172 172 172
Capital
surplus 195,429 195,257 194,930 194,595 194,406
Retained
earnings 54,871 50,333 45,875 41,544 37,496
Accumulated
other
comprehen-
sive loss (3,895) (7,380) (4,120) (4,892) (6,484)
---------- ---------- ---------- ---------- ----------
Total
stock-
holders'
equity 246,577 238,382 236,857 231,419 225,590
---------- ---------- ---------- ---------- ----------
Total lia-
bilities
and stock-
holders'
equity $2,267,672 $2,239,921 $2,203,576 $2,190,648 $2,113,498
========== ========== ========== ========== ==========
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
(In thousands)
-------------- Quarter Ended
-----------------------------------------------
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
2007 2007 2007 2006 2006
------- ------- ------- ------- -------
Interest income
Loans $31,116 $29,776 $28,288 $27,559 $26,748
Investment
securities
Taxable 4,133 4,273 4,586 4,705 4,738
Tax-exempt 1,043 1,025 1,026 938 883
Deposits - other
banks 53 30 49 36 38
Federal funds sold 36 40 235 447 51
------- ------- ------- ------- -------
Total interest
income 36,381 35,144 34,184 33,685 32,458
------- ------- ------- ------- -------
Interest expense
Interest on
deposits 14,416 14,091 14,133 13,530 12,010
Federal funds
purchased 194 247 205 53 178
FHLB and other
borrowed funds 2,426 2,033 1,811 1,840 1,825
Securities sold
under agreements
to repurchase 1,267 1,281 1,224 1,298 1,258
Subordinated
debentures 758 747 749 746 751
------- ------- ------- ------- -------
Total interest
expense 19,061 18,399 18,122 17,467 16,022
------- ------- ------- ------- -------
Net interest income 17,320 16,745 16,062 16,218 16,436
Provision for
loan losses 547 680 820 584 649
------- ------- ------- ------- -------
Net interest
income after
provision for
loan losses 16,773 16,065 15,242 15,634 15,787
------- ------- ------- ------- -------
Non-interest income
Service charges on
deposit accounts 2,816 2,669 2,588 2,778 2,354
Other service
charges and fees 1,342 1,334 1,500 906 541
Trust fees 27 30 24 184 166
Data processing fees 192 209 218 176 215
Mortgage banking
income 451 478 348 451 435
Insurance commissions 153 171 289 140 153
Income from title
services 181 238 156 205 233
Increase in cash
value of life
insurance 607 617 598 143 55
Dividends from FHLB,
FRB & bankers' bank 218 207 227 219 180
Equity in earnings
of unconsolidated
affiliate 47 (56) (114) (166) (65)
Gain on sale of
SBA loans -- 170 -- 38 --
Gain (loss) on sale
of premises & equip,
net (31) 167 14 6 129
Gain on sale of
securities, net -- -- -- -- --
Other income 309 349 357 349 302
------- ------- ------- ------- -------
Total non-interest
income 6,312 6,583 6,205 5,429 4,698
------- ------- ------- ------- -------
Non-interest expense
Salaries and
employee benefits 7,739 7,757 7,440 7,190 7,376
Occupancy and
equipment 2,446 2,342 2,210 2,361 2,223
Data processing
expense 644 670 644 618 651
Other operating
expenses 4,770 4,748 4,447 4,310 3,987
------- ------- ------- ------- -------
Total non-interest
expense 15,599 15,517 14,741 14,479 14,237
------- ------- ------- ------- -------
Income before income
taxes 7,486 7,131 6,706 6,584 6,248
Income tax expense 2,258 2,070 1,945 2,106 1,960
------- ------- ------- ------- -------
Net income $ 5,228 $ 5,061 $ 4,761 $ 4,478 $ 4,288
======= ======= ======= ======= =======
Nine Months Ended
--------------------
Sep. 30, Sep. 30,
2007 2006
-------- --------
Interest income
Loans $ 89,180 $ 72,593
Investment securities
Taxable 12,992 14,174
Tax-exempt 3,094 2,815
Deposits - other banks 132 103
Federal funds sold 311 393
-------- --------
Total interest income 105,709 90,078
-------- --------
Interest expense
Interest on deposits 42,640 32,683
Federal funds purchased 646 636
FHLB and other borrowed funds 6,270 4,787
Securities sold under
agreements to repurchase 3,772 3,122
Subordinated debentures 2,254 2,245
-------- --------
Total interest expense 55,582 43,473
-------- --------
Net interest income 50,127 46,605
Provision for loan losses 2,047 1,723
-------- --------
Net interest income after
provision for loan losses 48,080 44,882
-------- --------
Non-interest income
Service charges on deposit accounts 8,073 6,669
Other service charges and fees 4,176 1,736
Trust fees 81 487
Data processing fees 619 623
Mortgage banking income 1,277 1,285
Insurance commissions 613 642
Income from title services 575 752
Increase in cash value of
life insurance 1,822 161
Dividends from FHLB, FRB
& bankers' bank 652 440
Equity in earnings of unconsolidated
affiliate (123) (213)
Gain on sale of SBA loans 170 34
Gain (loss) on sale of premises
& equip, net 150 157
Gain on sale of securities, net -- 1
Other income 1,015 924
-------- --------
Total non-interest income 19,100 13,698
-------- --------
Non-interest expense
Salaries and employee benefits 22,936 22,123
Occupancy and equipment 6,998 6,351
Data processing expense 1,958 1,888
Other operating expenses 13,965 11,637
-------- --------
Total non-interest expense 45,857 41,999
-------- --------
Income before income taxes 21,323 16,581
Income tax expense 6,273 5,141
-------- --------
Net income $ 15,050 $ 11,440
======== ========
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
(Dollars and shares in thousands,
except per share data)
--------------------------------
Quarter Ended
-----------------------------------------------
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
2007 2007 2007 2006 2006
------- ------- ------- ------- -------
PER SHARE DATA
--------------
Diluted earnings
per share $ 0.30 $ 0.29 $ 0.27 $ 0.26 $ 0.25
Diluted cash
earnings per share 0.31 0.30 0.29 0.28 0.26
Basic earnings
per share 0.30 0.29 0.28 0.25 0.26
Dividends per share
- common 0.040 0.035 0.025 0.025 0.025
Book value per
common share 14.30 13.83 13.75 13.45 13.12
Tangible book value
per common share 11.65 11.15 11.05 10.72 10.36
STOCK INFORMATION
-----------------
Average common shares
outstanding 17,239 17,235 17,219 17,202 16,361
Average diluted
shares outstanding 17,537 17,544 17,501 17,438 17,291
End of period common
shares outstanding 17,243 17,238 17,222 17,206 17,196
Dividends paid on
preferred stock -- -- -- -- 49
ANNUALIZED PERFORMANCE
RATIOS
----------------------
Return on average
assets 0.92% 0.92% 0.88% 0.83% 0.83%
Cash return on
average assets 0.99% 0.99% 0.95% 0.90% 0.90%
Return on average
equity 8.60% 8.52% 8.30% 7.82% 7.81%
Cash return on average
tangible equity 11.16% 11.14% 10.96% 10.46% 10.61%
Efficiency ratio 62.47% 62.95% 62.52% 63.10% 63.72%
Net interest margin
- FTE 3.55% 3.51% 3.42% 3.42% 3.57%
Fully taxable
equivalent adjustment 634 623 610 553 521
RECONCILIATION OF
CASH EARNINGS
----------------
GAAP net income $ 5,228 $ 5,061 $ 4,761 $ 4,478 $ 4,288
Intangible amortiza-
tion after-tax 267 267 267 267 267
------- ------- ------- ------- -------
Cash earnings $ 5,495 $ 5,328 $ 5,028 $ 4,745 $ 4,555
======= ======= ======= ======= =======
GAAP diluted earnings
per share $ 0.30 $ 0.29 $ 0.27 $ 0.26 $ 0.25
Intangible amortiza-
tion after-tax 0.01 0.01 0.02 0.02 0.01
------- ------- ------- ------- -------
Diluted cash earnings
per share $ 0.31 $ 0.30 $ 0.29 $ 0.28 $ 0.26
======= ======= ======= ======= =======
OTHER OPERATING
EXPENSES
---------------
Advertising $ 646 $ 580 $ 629 $ 645 $ 568
Amortization of
intangibles 439 439 439 439 439
Electronic banking
expense 618 655 530 359 152
Directors' fees 225 218 174 165 203
Due from bank service
charges 55 51 56 86 91
FDIC and state
assessment 266 231 260 133 142
Insurance 211 228 244 289 285
Legal and accounting 308 303 319 278 191
Other professional
fees 201 214 170 284 204
Operating supplies 241 227 226 256 202
Postage 163 171 164 163 171
Telephone 227 233 228 220 251
Other expense 1,170 1,198 1,008 993 1,088
------- ------- ------- ------- -------
Total other
operating expenses $ 4,770 $ 4,748 $ 4,447 $ 4,310 $ 3,987
======= ======= ======= ======= =======
Nine Months Ended
------------------
Sep. 30, Sep. 30,
2007 2006
------- -------
PER SHARE DATA
--------------
Diluted earnings per share $ 0.86 $ 0.74
Diluted cash earnings per share 0.90 0.79
Basic earnings per share 0.87 0.82
Dividends per share - common 0.100 0.065
Book value per common share 14.30 13.12
Tangible book value per common share 11.65 10.36
STOCK INFORMATION
-----------------
Average common shares outstanding 17,231 13,585
Average diluted shares outstanding 17,521 15,415
End of period common shares outstanding 17,243 17,196
Dividends paid on preferred stock -- 359
ANNUALIZED PERFORMANCE RATIOS
-----------------------------
Return on average assets 0.91% 0.77%
Cash return on average assets 0.98% 0.84%
Return on average equity 8.48% 8.25%
Cash return on average tangible equity 11.09% 11.90%
Efficiency ratio 62.65% 65.66%
Net interest margin - FTE 3.49% 3.54%
Fully taxable equivalent adjustment 1,867 1,676
RECONCILIATION OF CASH EARNINGS
-------------------------------
GAAP net income $15,050 $11,440
Intangible amortization after-tax 801 792
------- -------
Cash earnings $15,851 $12,232
======= =======
GAAP diluted earnings per share $ 0.86 $ 0.74
Intangible amortization after-tax 0.04 0.05
------- -------
Diluted cash earnings per share $ 0.90 $ 0.79
======= =======
OTHER OPERATING EXPENSES
------------------------
Advertising $ 1,855 $ 1,738
Amortization of intangibles 1,317 1,303
Electronic banking expense 1,803 430
Directors' fees 617 609
Due from bank service charges 162 245
FDIC and state assessment 757 394
Insurance 683 741
Legal and accounting 930 747
Other professional fees 585 487
Operating supplies 694 684
Postage 498 500
Telephone 688 755
Other expense 3,376 3,004
------- -------
Total other operating expenses $13,965 $11,637
======= =======
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
(Dollars in thousands) Sep. 30, Jun. 30, Mar. 31,
---------------------- 2007 2007 2007
---------- ---------- ----------
LOAN BALANCES
-------------
Real estate
Commercial real estate loans
Non-farm/non-residential $ 590,083 $ 555,466 $ 519,680
Construction/land development 365,236 368,632 369,022
Agricultural 22,432 32,235 33,245
Residential real estate loans
Residential 1-4 family 251,057 240,003 231,788
Multifamily residential 38,528 37,559 39,329
---------- ---------- ----------
Total real estate 1,267,336 1,233,895 1,193,064
Consumer 45,212 43,964 42,345
Commercial and industrial 206,744 205,760 205,531
Agricultural 25,506 24,969 16,986
Other 15,576 16,425 17,450
---------- ---------- ----------
Total loans receivable before
allowance for loan losses 1,560,374 1,525,013 1,475,376
Allowance for loan losses 28,636 28,112 26,934
---------- ---------- ----------
Total loans receivable, net $1,531,738 $1,496,901 $1,448,442
========== ========== ==========
Loans to deposits 97.61% 92.82% 90.61%
ALLOWANCE FOR LOAN LOSSES
-------------------------
Balance, beginning of period $ 28,112 $ 26,934 $ 26,111
Loans charged off 172 68 100
Recoveries of loans previously
charged off 149 566 103
---------- ---------- ----------
Net (recoveries) loans
charged off 23 (498) (3)
Provision for loan losses 547 680 820
---------- ---------- ----------
Balance, end of period $ 28,636 $ 28,112 $ 26,934
========== ========== ==========
Net (recoveries) charge-offs to
average loans 0.01% -0.13% 0.00%
Allowance for loan losses to
total loans 1.84% 1.84% 1.83%
NON-PERFORMING ASSETS
---------------------
Non-performing loans
Non-accrual loans $ 2,572 $ 18,964 $ 5,059
Loans past due 90 days or more 150 105 1,116
---------- ---------- ----------
Total non-performing loans 2,722 19,069 6,175
---------- ---------- ----------
Other non-performing assets
Foreclosed assets held for sale 4,915 182 327
Other non-performing assets -- 1 1
---------- ---------- ----------
Total other non-performing
assets 4,915 183 328
---------- ---------- ----------
Total non-performing assets $ 7,637 $ 19,252 $ 6,503
========== ========== ==========
Allowance for loan losses to
non-performing loans 1052.02% 147.42% 436.18%
Non-performing loans to
total loans 0.17% 1.25% 0.42%
Non-performing assets to
total assets 0.34% 0.86% 0.30%
Dec. 31, Sep. 30,
2006 2006
---------- ----------
LOAN BALANCES
-------------
Real estate
Commercial real estate loans
Non-farm/non-residential $ 465,306 $ 454,227
Construction/land development 393,410 394,036
Agricultural 11,659 11,598
Residential real estate loans
Residential 1-4 family 229,588 228,347
Multifamily residential 37,440 34,527
---------- ----------
Total real estate 1,137,403 1,122,735
Consumer 45,056 43,716
Commercial and industrial 206,559 181,673
Agricultural 13,520 26,439
Other 13,757 12,716
---------- ----------
Total loans receivable before
allowance for loan losses 1,416,295 1,387,279
Allowance for loan losses 26,111 25,952
---------- ----------
Total loans receivable, net $1,390,184 $1,361,327
========== ==========
Loans to deposits 88.12% 89.07%
ALLOWANCE FOR LOAN LOSSES
-------------------------
Balance, beginning of period $ 25,952 $ 25,245
Loans charged off 529 210
Recoveries of loans previously
charged off 104 268
---------- ----------
Net (recoveries) loans charged off 425 (58)
Provision for loan losses 584 649
---------- ----------
Balance, end of period $ 26,111 $ 25,952
========== ==========
Net (recoveries) charge-offs to
average loans 0.12% -0.02%
Allowance for loan losses to total loans 1.84% 1.87%
NON-PERFORMING ASSETS
---------------------
Non-performing loans
Non-accrual loans $ 3,905 $ 5,347
Loans past due 90 days or more 641 879
---------- ----------
Total non-performing loans 4,546 6,226
---------- ----------
Other non-performing assets
Foreclosed assets held for sale 435 732
Other non-performing assets 13 15
---------- ----------
Total other non-performing assets 448 747
---------- ----------
Total non-performing assets $ 4,994 $ 6,973
========== ==========
Allowance for loan losses to
non-performing loans 574.37% 416.83%
Non-performing loans to total loans 0.32% 0.45%
Non-performing assets to total assets 0.23% 0.33%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
(Dollars in thousands)
----------------------
Three Months Ended
-----------------------------------------------------
September 30, 2007 June 30, 2007
------------------------- -------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
---------- ------- ---- ---------- ------- ----
ASSETS
------
Earning assets
Interest-bearing
balances due
from banks $ 3,894 $ 53 5.40% $ 2,319 $ 30 5.19%
Federal funds
sold 2,995 36 4.77% 3,058 40 5.25%
Investment
securities -
taxable 366,530 4,133 4.47% 375,609 4,273 4.56%
Investment
securities -
non-taxable
- FTE 87,953 1,614 7.28% 96,943 1,586 6.56%
Loans receivable
- FTE 1,547,858 31,179 7.99% 1,506,237 29,838 7.95%
---------- ------- ---------- -------
Total interest-
earning
assets 2,009,230 37,015 7.31% 1,984,166 35,767 7.23%
------- -------
Non-earning
assets 234,003 228,174
---------- ----------
Total assets $2,243,233 $2,212,340
========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Liabilities
Interest-bearing
liabilities
Interest-bearing
transaction
and savings
deposits $ 586,710 $ 4,375 2.96% $ 615,459 $ 4,648 3.03%
Time deposits 813,676 10,041 4.90% 780,836 9,443 4.85%
---------- ------- ---------- -------
Total interest-
bearing
deposits 1,400,386 14,416 4.08% 1,396,295 14,091 4.05%
Federal funds
purchased 14,446 194 5.33% 18,379 247 5.39%
Securities sold
under agreement
to repurchase 125,877 1,267 3.99% 119,610 1,281 4.30%
FHLB and other
borrowed funds 191,887 2,426 5.02% 162,880 2,033 5.01%
Subordinated
debentures 44,609 758 6.74% 44,631 747 6.71%
---------- ------- ---------- -------
Total interest-
bearing
liabilities 1,777,205 19,061 4.26% 1,741,795 18,399 4.24%
------- -------
Non-interest
bearing
liabilities
Non-interest-
bearing
deposits 212,298 220,411
Other
liabilities 12,577 11,977
---------- ----------
Total
liabilities 2,002,080 1,974,183
Shareholders'
equity 241,153 238,157
---------- ----------
Total
liabilities
and share-
holders'
equity $2,243,233 $2,212,340
========== ==========
Net interest
spread 3.05% 2.99%
Net interest
income and
margin - FTE $17,954 3.55% $17,368 3.51%
======= =======
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
(Dollars in thousands)
----------------------
Nine Months Ended
-----------------------------------------------------
September 30, 2007 September 30, 2006
------------------------- -------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
ASSETS ---------- ------- ---- ---------- ------- ----
------
Earning assets
Interest-bearing
balances due
from banks $ 3,336 $ 132 5.29% $ 2,916 $ 103 4.72%
Federal funds
sold 7,973 311 5.22% 11,062 393 4.75%
Investment
securities -
taxable 382,985 12,992 4.54% 426,549 14,174 4.44%
Investment
securities -
non-taxable
- FTE 94,227 4,781 6.78% 92,179 4,367 6.33%
Loans receivable
- FTE 1,501,983 89,360 7.95% 1,289,594 72,717 7.54%
---------- ------- ---------- -------
Total interest-
earning
assets 1,990,504 107,576 7.23% 1,822,300 91,754 6.73%
------- -------
Non-earning
assets 227,419 173,821
---------- ----------
Total assets $2,217,923 $1,996,121
========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Liabilities
Interest-bearing
liabilities
Interest-
bearing trans-
action and
savings
deposits $ 598,070 $13,357 2.99% $ 523,843 $ 9,323 2.38%
Time deposits 805,125 29,283 4.86% 747,782 23,360 4.18%
---------- ------- ---------- -------
Total interest-
bearing
deposits 1,403,195 42,640 4.06% 1,271,625 32,683 3.44%
Federal funds
purchased 16,071 646 5.37% 17,221 636 4.94%
Securities sold
under agreement
to repurchase 120,451 3,772 4.19% 107,798 3,122 3.87%
FHLB and other
borrowed
funds 168,046 6,270 4.99% 141,994 4,787 4.51%
Subordinated
debentures 44,631 2,254 6.75% 44,722 2,245 6.71%
---------- ------- ---------- -------
Total interest-
bearing
liabilities 1,752,394 55,582 4.24% 1,583,360 43,473 3.67%
------- -------
Non-interest
bearing
liabilities
Non-interest-
bearing
deposits 215,716 216,366
Other
liabilities 12,422 10,903
---------- ----------
Total
liabilities 1,980,532 1,810,629
Shareholders'
equity 237,391 185,492
---------- ----------
Total liabil-
ities and
shareholders'
equity $2,217,923 $1,996,121
========== ==========
Net interest
spread 2.99% 3.06%
Net interest
income and
margin - FTE $51,994 3.49% $48,281 3.54%
======= =======