CONWAY, Ark., Jan. 17, 2008 (PRIME NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB) today announced record net income for the year ended December 31, 2007 of $20.4 million, a 28.4% increase over net income of $15.9 million for 2006. Diluted earnings per share for 2007 were $1.17, compared to $1.00 for 2006, an increase of 17.0%.
Net income for the fourth quarter of 2007 was $5.4 million, a 20.5% increase over net income of $4.5 million for same period last year. Diluted earnings per share were $0.31 for the fourth quarter of 2007 compared to $0.26 for the fourth quarter of 2006, an increase of 19.2%.
"Once again, the hard work of our partners, associates and boards of directors proved to be successful in attracting quality customers," said John W. Allison, Chairman and Chief Executive Officer. "As a result of their efforts, I am pleased to report record earnings, strong loan growth, improving net interest margin and solid asset quality in these turbulent financial times."
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 for the year ended December 31, 2007 was $1.23, compared to $1.07 for 2006, an increase of 15.0%. Cash diluted earnings per share were $0.33 and $0.28 for the fourth quarter of 2007 and 2006, respectively, an increase of 17.9%.
Operating Highlights
Net interest income for the fourth quarter of 2007 increased 10.1% to $17.9 million compared to $16.2 million for the fourth quarter of 2006. Net interest margin, on a fully taxable equivalent basis, was 3.61% in the quarter just ended compared to 3.42% in the fourth quarter of 2006, an increase of 19 basis points. The Company's fourth quarter 2007 net interest margin of 3.61% reflected an increase of six basis points from the third quarter's 3.55%. 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 run off in the investment portfolio have allowed the Company to improve net interest margin.
Net interest income for the year ended December 31, 2007 increased 8.2% to $68.0 million compared with $62.8 million for the year ended December 31, 2006. The Company's net interest margin, on a fully taxable equivalent basis, for 2007 was 3.52%, an increase of 1 basis point from 3.51% in 2006.
Non-interest income for the fourth quarter of 2007 was $6.7 million compared with $5.4 million for the fourth quarter of 2006, a 22.6% increase. Non-interest income for the year ended December 31, 2007 was $25.8 million compared to $19.1 million for the year ended December 31, 2006, a 34.6% 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 fourth quarter of 2007 was $15.7 million compared with $14.5 million for the fourth quarter of 2006, an increase of 8.3%. Non-interest expense for the year ended December 31, 2007 was $61.5 million compared with $56.5 million for 2006, an increase of 9.0%. The increase is primarily the result of the de novo expansion particularly in the Florida market and additional costs associated with our ability to retain more interchange fee income combined with the normal increased cost of doing business.
Financial Condition
Total loans were $1.61 billion at December 31, 2007 compared to $1.42 billion at December 31, 2006, an increase of 13.5%. Total deposits were $1.59 billion at December 31, 2007 compared to $1.61 billion at December 31, 2006, a decrease of 0.9%. Total assets were $2.29 billion at December 31, 2007, a 4.6% increase from $2.19 billion at December 31, 2006.
Nonperforming loans as a percent of total loans improved to 0.20% as of December 31, 2007 when compared to 0.32% as of December 31, 2006. Nonperforming assets as a percent of total assets were 0.36% as of December 31, 2007 compared to 0.23% as of December 31, 2006.
The Company's allowance for loan losses was $29.4 million at December 31, 2007, or 1.83% of total loans, compared to $26.1 million, or 1.84% of total loans, at December 31, 2006. As of December 31, 2007, the Company's allowance for loan losses equaled 904% of its total nonperforming loans compared to 574% as of December 31, 2006.
Stockholders' equity was $253.1 million at December 31, 2007 compared to $231.4 million at December 31, 2006, an increase of 9.3%. Book value per common share was $14.67 at December 31, 2007 compared to $13.45 at December 31, 2006, a 9.1% increase.
Branch Expansion
During 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, January 17, 2008. 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: 414677, which will be available until January 25, 2008 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 six 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. Four of the bank subsidiaries are located in the central Arkansas market area, a fifth serves Stone County in north central Arkansas, and a sixth serves the Florida Keys and southwestern Florida. 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)
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(In thousands) 2007 2007 2007 2007 2006
-------------- ---------- ---------- ---------- ---------- ----------
ASSETS
------
Cash and due
from banks $ 51,468 $ 46,471 $ 51,110 $ 57,998 $ 53,004
Interest-
bearing
deposits with
other banks 3,553 2,573 2,431 2,962 6,696
---------- ---------- ---------- ---------- ----------
Cash and cash
equivalents 55,021 49,044 53,541 60,960 59,700
Federal funds
sold 76 11,145 10,182 10,685 9,003
Investment
securities -
available for
sale 430,399 447,826 458,782 476,534 531,891
Loans
receivable 1,606,994 1,560,374 1,525,013 1,475,376 1,416,295
Allowance for
loan losses (29,406) (28,636) (28,112) (26,934) (26,111)
---------- ---------- ---------- ---------- ----------
Loans
receivable,
net 1,577,588 1,531,738 1,496,901 1,448,442 1,390,184
Bank premises
and equipment,
net 67,702 66,770 64,656 60,751 57,339
Foreclosed
assets held
for sale 5,083 4,915 182 327 435
Cash value of
life insurance 48,093 47,468 46,862 42,746 42,149
Investments in
unconsolidated
affiliates 15,084 14,982 14,836 12,336 12,449
Accrued
interest
receivable 14,321 15,186 14,847 14,331 13,736
Deferred tax
asset, net 9,163 9,499 11,023 8,455 8,361
Goodwill 37,527 37,527 37,527 37,527 37,527
Core deposit
and other
intangibles 7,702 8,141 8,580 9,019 9,458
Other assets 23,871 23,431 22,002 21,463 18,416
---------- ---------- ---------- ---------- ----------
Total assets $2,291,630 $2,267,672 $2,239,921 $2,203,576 $2,190,648
========== ========== ========== ========== ==========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
---------------
Liabilities
Deposits:
Demand and
non-
interest-
bearing $ 211,993 $ 217,666 $ 224,675 $ 228,716 $ 215,142
Savings and
interest-
bearing
transaction
accounts 582,477 569,797 612,853 606,593 582,425
Time deposits 797,736 811,108 805,485 792,951 809,627
---------- ---------- ---------- ---------- ----------
Total
deposits 1,592,206 1,598,571 1,643,013 1,628,260 1,607,194
Federal funds
purchased 16,407 8,690 -- 25,450 25,270
Securities
sold under
agreements
to repurchase 120,572 131,007 127,392 128,335 118,825
FHLB and other
borrowed
funds 251,750 226,028 175,455 127,842 151,768
Accrued
interest
payable and
other
liabilities 13,067 12,204 11,061 12,192 11,509
Subordinated
debentures 44,572 44,595 44,618 44,640 44,663
---------- ---------- ---------- ---------- ----------
Total
liabilities 2,038,574 2,021,095 2,001,539 1,966,719 1,959,229
---------- ---------- ---------- ---------- ----------
Stockholders'
equity
Common stock 173 172 172 172 172
Capital
surplus 195,649 195,429 195,257 194,930 194,595
Retained
earnings 59,489 54,871 50,333 45,875 41,544
Accumulated
other
comprehensive
loss (2,255) (3,895) (7,380) (4,120) (4,892)
---------- ---------- ---------- ---------- ----------
Total
stock-
holders'
equity 253,056 246,577 238,382 236,857 231,419
---------- ---------- ---------- ---------- ----------
Total
liabilities
and stock-
holders'
equity $2,291,630 $2,267,672 $2,239,921 $2,203,576 $2,190,648
========== ========== ========== ========== ==========
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended
-------------------------------------------
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(In thousands) 2007 2007 2007 2007 2006
------------------------ ------- ------- ------- ------- -------
Interest income
Loans $30,887 $31,116 $29,776 $28,288 $27,559
Investment securities
Taxable 4,011 4,133 4,273 4,586 4,705
Tax-exempt 1,093 1,043 1,025 1,026 938
Deposits - other banks 34 53 30 49 36
Federal funds sold 31 36 40 235 447
------- ------- ------- ------- -------
Total interest income 36,056 36,381 35,144 34,184 33,685
------- ------- ------- ------- -------
Interest expense
Interest on deposits 13,592 14,416 14,091 14,133 13,530
Federal funds purchased 170 194 247 205 53
FHLB and other borrowed
funds 2,712 2,426 2,033 1,811 1,840
Securities sold under
agreements to repurchase 974 1,267 1,281 1,224 1,298
Subordinated debentures 748 758 747 749 746
------- ------- ------- ------- -------
Total interest expense 18,196 19,061 18,399 18,122 17,467
------- ------- ------- ------- -------
Net interest income 17,860 17,320 16,745 16,062 16,218
Provision for loan losses 1,195 547 680 820 584
------- ------- ------- ------- -------
Net interest income after
provision for loan losses 16,665 16,773 16,065 15,242 15,634
------- ------- ------- ------- -------
Non-interest income
Service charges on
deposit accounts 3,129 2,816 2,669 2,588 2,778
Other service charges
and fees 1,294 1,342 1,334 1,500 906
Trust fees 50 27 30 24 184
Data processing fees 165 192 209 218 176
Mortgage banking income 385 451 478 348 451
Insurance commissions 149 153 171 289 140
Income from title
services 138 181 238 156 205
Increase in cash value
of life insurance 626 607 617 598 143
Dividends from FHLB, FRB
& bankers' bank 259 218 207 227 219
Equity in earnings of
unconsolidated affiliate 37 47 (56) (114) (166)
Gain on sale of SBA loans -- -- 170 -- 38
Gain (loss) on sale of
premises & equip, net (14) (31) 167 14 6
Gain on sale of
securities, net -- -- -- -- --
Other income 436 309 349 357 349
------- ------- ------- ------- -------
Total non-interest income 6,654 6,312 6,583 6,205 5,429
------- ------- ------- ------- -------
Non-interest expense
Salaries and employee
benefits 7,560 7,739 7,757 7,440 7,190
Occupancy and equipment 2,461 2,446 2,342 2,210 2,361
Data processing expense 690 644 670 644 618
Other operating expenses 4,967 4,770 4,748 4,447 4,310
------- ------- ------- ------- -------
Total non-interest expense 15,678 15,599 15,517 14,741 14,479
------- ------- ------- ------- -------
Income before income taxes 7,641 7,486 7,131 6,706 6,584
Income tax expense 2,246 2,258 2,070 1,945 2,106
------- ------- ------- ------- -------
Net income $ 5,395 $ 5,228 $ 5,061 $ 4,761 $ 4,478
======= ======= ======= ======= =======
Year Ended
---------------------
Dec. 31, Dec. 31,
2007 2006
--------- ---------
Interest income
Loans $ 120,067 $ 100,152
Investment securities
Taxable 17,003 18,879
Tax-exempt 4,187 3,753
Deposits - other banks 166 139
Federal funds sold 342 840
--------- ---------
Total interest income 141,765 123,763
--------- ---------
Interest expense
Interest on deposits 56,232 46,213
Federal funds purchased 816 689
FHLB and other borrowed funds 8,982 6,627
Securities sold under
agreements to repurchase 4,746 4,420
Subordinated debentures 3,002 2,991
--------- ---------
Total interest expense 73,778 60,940
--------- ---------
Net interest income 67,987 62,823
Provision for loan losses 3,242 2,307
--------- ---------
Net interest income after
provision for loan losses 64,745 60,516
--------- ---------
Non-interest income
Service charges on deposit accounts 11,202 9,447
Other service charges and fees 5,470 2,642
Trust fees 131 671
Data processing fees 784 799
Mortgage banking income 1,662 1,736
Insurance commissions 762 782
Income from title services 713 957
Increase in cash value of life insurance 2,448 304
Dividends from FHLB, FRB & bankers' bank 911 659
Equity in earnings of unconsolidated affiliate (86) (379)
Gain on sale of SBA loans 170 72
Gain (loss) on sale of premises & equip, net 136 163
Gain on sale of securities, net -- 1
Other income 1,451 1,273
--------- ---------
Total non-interest income 25,754 19,127
--------- ---------
Non-interest expense
Salaries and employee benefits 30,496 29,313
Occupancy and equipment 9,459 8,712
Data processing expense 2,648 2,506
Other operating expenses 18,932 15,947
--------- ---------
Total non-interest expense 61,535 56,478
--------- ---------
Income before income taxes 28,964 23,165
Income tax expense 8,519 7,247
--------- ---------
Net income $ 20,445 $ 15,918
========= =========
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter Ended
(Dollars and shares in -------------------------------------------
thousands, except per Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
share data) 2007 2007 2007 2007 2006
------------------------ ------- ------- ------- ------- -------
PER SHARE DATA
--------------
Diluted earnings per
share $ 0.31 $ 0.30 $ 0.29 $ 0.27 $ 0.26
Diluted cash earnings per
share 0.33 0.31 0.30 0.29 0.28
Basic earnings per share 0.32 0.30 0.29 0.28 0.25
Dividends per share -
common 0.045 0.040 0.035 0.025 0.025
Book value per common
share 14.67 14.30 13.83 13.75 13.45
Tangible book value per
common share 12.05 11.65 11.15 11.05 10.72
STOCK INFORMATION
-----------------
Average common shares
outstanding 17,246 17,239 17,235 17,219 17,202
Average diluted shares
outstanding 17,538 17,537 17,544 17,501 17,438
End of period common
shares outstanding 17,250 17,243 17,238 17,222 17,206
Dividends paid on
preferred stock -- -- -- -- --
ANNUALIZED PERFORMANCE
RATIOS
----------------------
Return on average assets 0.94% 0.92% 0.92% 0.88% 0.83%
Cash return on average
assets 1.01% 0.99% 0.99% 0.95% 0.90%
Return on average equity 8.56% 8.60% 8.52% 8.30% 7.82%
Cash return on average
tangible equity 10.98% 11.16% 11.14% 10.96% 10.46%
Efficiency ratio 60.54% 62.47% 62.95% 62.52% 63.10%
Net interest margin - FTE 3.61% 3.55% 3.51% 3.42% 3.42%
Fully taxable equivalent
adjustment 659 634 623 610 553
RECONCILIATION OF CASH
EARNINGS
----------------------
GAAP net income $ 5,395 $ 5,228 $ 5,061 $ 4,761 $ 4,478
Intangible amortization
after-tax 267 267 267 267 267
------- ------- ------- ------- -------
Cash earnings $ 5,662 $ 5,495 $ 5,328 $ 5,028 $ 4,745
======= ======= ======= ======= =======
GAAP diluted earnings per
share $ 0.31 $ 0.30 $ 0.29 $ 0.27 $ 0.26
Intangible amortization
after-tax 0.02 0.01 0.01 0.02 0.02
------- ------- ------- ------- -------
Diluted cash earnings per
share $ 0.33 $ 0.31 $ 0.30 $ 0.29 $ 0.28
======= ======= ======= ======= =======
OTHER OPERATING EXPENSES
------------------------
Advertising $ 836 $ 646 $ 580 $ 629 $ 645
Amortization of
intangibles 439 439 439 439 439
Electronic banking
expense 556 618 655 530 359
Directors' fees 226 225 218 174 165
Due from bank service
charges 52 55 51 56 86
FDIC and state assessment 259 266 231 260 133
Insurance 218 211 228 244 289
Legal and accounting 276 308 303 319 278
Other professional fees 317 201 214 170 284
Operating supplies 289 241 227 226 256
Postage 165 163 171 164 163
Telephone 263 227 233 228 220
Other expense 1,071 1,170 1,198 1,008 993
------- ------- ------- ------- -------
Total other operating
expenses $ 4,967 $ 4,770 $ 4,748 $ 4,447 $ 4,310
======= ======= ======= ======= =======
Year Ended
-------------------
Dec. 31, Dec. 31,
2007 2006
-------- --------
PER SHARE DATA
--------------
Diluted earnings per share $ 1.17 $ 1.00
Diluted cash earnings per share 1.23 1.07
Basic earnings per share 1.19 1.07
Dividends per share - common 0.145 0.090
Book value per common share 14.67 13.45
Tangible book value per common share 12.05 10.72
STOCK INFORMATION
-----------------
Average common shares outstanding 17,235 14,497
Average diluted shares outstanding 17,525 15,923
End of period common shares outstanding 17,250 17,206
Dividends paid on preferred stock -- 359
ANNUALIZED PERFORMANCE RATIOS
-----------------------------
Return on average assets 0.92% 0.78%
Cash return on average assets 0.98% 0.86%
Return on average equity 8.50% 8.12%
Cash return on average tangible equity 11.06% 11.46%
Efficiency ratio 62.10% 64.99%
Net interest margin - FTE 3.52% 3.51%
Fully taxable equivalent adjustment 2,526 2,229
RECONCILIATION OF CASH EARNINGS
-------------------------------
GAAP net income $ 20,445 $ 15,918
Intangible amortization after-tax 1,068 1,059
-------- --------
Cash earnings $ 21,513 $ 16,977
======== ========
GAAP diluted earnings per share $ 1.17 $ 1.00
Intangible amortization after-tax 0.06 0.07
-------- --------
Diluted cash earnings per share $ 1.23 $ 1.07
======== ========
OTHER OPERATING EXPENSES
------------------------
Advertising $ 2,691 $ 2,383
Amortization of intangibles 1,756 1,742
Electronic banking expense 2,359 789
Directors' fees 843 774
Due from bank service charges 214 331
FDIC and state assessment 1,016 527
Insurance 901 1,030
Legal and accounting 1,206 1,025
Other professional fees 902 771
Operating supplies 983 940
Postage 663 663
Telephone 951 975
Other expense 4,447 3,997
-------- --------
Total other operating expenses $ 18,932 $ 15,947
======== ========
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
(Dollars in Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
thousands) 2007 2007 2007 2007 2006
------------- ---------- ---------- ---------- ---------- ----------
LOAN BALANCES
-------------
Real estate
Commercial
real estate
loans
Non-farm/non-
residential $ 607,638 $ 590,083 $ 555,466 $ 519,680 $ 465,306
Construction/
land
development 367,422 365,236 368,632 369,022 393,410
Agricultural 22,605 22,432 32,235 33,245 11,659
Residential
real estate
loans
Residential
1-4 family 259,975 251,057 240,003 231,788 229,588
Multifamily
residential 45,428 38,528 37,559 39,329 37,440
---------- ---------- ---------- ---------- ----------
Total real
estate 1,303,068 1,267,336 1,233,895 1,193,064 1,137,403
Consumer 46,275 45,212 43,964 42,345 45,056
Commercial and
industrial 219,062 206,744 205,760 205,531 206,559
Agricultural 20,429 25,506 24,969 16,986 13,520
Other 18,160 15,576 16,425 17,450 13,757
---------- ---------- ---------- ---------- ----------
Total loans
receivable
before
allowance
for loan
losses 1,606,994 1,560,374 1,525,013 1,475,376 1,416,295
Allowance for
loan losses 29,406 28,636 28,112 26,934 26,111
---------- ---------- ---------- ---------- ----------
Total loans
receivable,
net $1,577,588 $1,531,738 $1,496,901 $1,448,442 $1,390,184
========== ========== ========== ========== ==========
Loans to
deposits 100.93% 97.61% 92.82% 90.61% 88.12%
ALLOWANCE FOR
LOAN LOSSES
-------------
Balance,
beginning of
period $ 28,636 $ 28,112 $ 26,934 $ 26,111 $ 25,952
Loans charged
off 486 172 68 100 529
Recoveries of
loans
previously
charged off 61 149 566 103 104
---------- ---------- ---------- ---------- ----------
Net
(recoveries)
loans charged
off 425 23 (498) (3) 425
Provision for
loan losses 1,195 547 680 820 584
---------- ---------- ---------- ---------- ----------
Balance, end
of period $ 29,406 $ 28,636 $ 28,112 $ 26,934 $ 26,111
========== ========== ========== ========== ==========
Net
(recoveries)
charge-offs
to average
loans 0.11% 0.01% -0.13% 0.00% 0.12%
Allowance for
loan losses to
total loans 1.83% 1.84% 1.84% 1.83% 1.84%
NON-PERFORMING
ASSETS
--------------
Non-performing
loans
Non-accrual
loans $ 2,952 $ 2,572 $ 18,964 $ 5,059 $ 3,905
Loans past due
90 days or
more 301 150 105 1,116 641
---------- ---------- ---------- ---------- ----------
Total non-
performing
loans 3,253 2,722 19,069 6,175 4,546
---------- ---------- ---------- ---------- ----------
Other non-
performing
assets
Foreclosed
assets held
for sale 5,083 4,915 182 327 435
Other non-
performing
assets 15 -- 1 1 13
---------- ---------- ---------- ---------- ----------
Total other
non-
performing
assets 5,098 4,915 183 328 448
---------- ---------- ---------- ---------- ----------
Total non-
performing
assets $ 8,351 $ 7,637 $ 19,252 $ 6,503 $ 4,994
========== ========== ========== ========== ==========
Allowance for
loan losses
to non-
performing
loans 903.97% 1052.02% 147.42% 436.18% 574.37%
Non-performing
loans to
total loans 0.20% 0.17% 1.25% 0.42% 0.32%
Non-performing
assets to
total assets 0.36% 0.34% 0.86% 0.30% 0.23%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
--------------------------------------------------
December 31, 2007 September 30, 2007
------------------------ ------------------------
(Dollars in Average Income/ Yield/ Average Income/ Yield/
thousands) Balance Expense Rate Balance Expense Rate
----------------- ---------- ------- ----- ---------- ------- -----
ASSETS
------
Earning assets
Interest-bearing
balances due
from banks $ 2,935 $ 34 4.60% $ 3,894 $ 53 5.40%
Federal funds
sold 2,855 31 4.31% 2,995 36 4.77%
Investment
securities -
taxable 347,838 4,011 4.57% 366,530 4,133 4.47%
Investment
securities -
non-taxable -
FTE 102,475 1,687 6.53% 87,953 1,614 7.28%
Loans receivable
- FTE 1,580,926 30,952 7.77% 1,547,858 31,179 7.99%
---------- ------- ---------- -------
Total interest-
earning assets 2,037,029 36,715 7.15% 2,009,230 37,015 7.31%
------- -------
Non-earning
assets 242,079 234,003
---------- ----------
Total assets $2,279,108 $2,243,233
========== ==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
--------------------
Liabilities
Interest-bearing
liabilities
Interest-bearing
transaction and
savings
deposits $ 573,488 $ 3,675 2.54% $ 586,710 $ 4,375 2.96%
Time deposits 815,599 9,917 4.82% 813,676 10,041 4.90%
---------- ------- ---------- -------
Total interest-
bearing
deposits 1,389,087 13,592 3.88% 1,400,386 14,416 4.08%
Federal funds
purchased 13,957 170 4.83% 14,446 194 5.33%
Securities sold
under agreement
to repurchase 125,609 974 3.08% 125,877 1,267 3.99%
FHLB and other
borrowed funds 228,360 2,712 4.71% 191,887 2,426 5.02%
Subordinated
debentures 44,586 748 6.66% 44,609 758 6.74%
---------- ------- ---------- -------
Total interest-
bearing
liabilities 1,801,599 18,196 4.01% 1,777,205 19,061 4.26%
------- -------
Non-interest
bearing
liabilities
Non-interest-
bearing
deposits 213,717 212,298
Other
liabilities 13,843 12,577
---------- ---------
Total
liabilities 2,029,159 2,002,080
Shareholders'
equity 249,949 241,153
---------- ----------
Total liabilities
and
shareholders'
equity $2,279,108 $2,243,233
========== ==========
Net interest spread 3.14% 3.05%
Net interest
income and
margin - FTE $18,519 3.61% $17,954 3.55%
======= =======
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Years Ended
--------------------------------------------------
December 31, 2007 December 31, 2006
------------------------ ------------------------
(Dollars in Average Income/ Yield/ Average Income/ Yield/
thousands) Balance Expense Rate Balance Expense Rate
----------------- ---------- ------- ----- ---------- ------- -----
ASSETS
------
Earning assets
Interest-bearing
balances due
from banks $ 3,235 $ 166 5.13% $ 2,939 $ 139 4.73%
Federal funds
sold 6,683 342 5.12% 16,870 840 4.98%
Investment
securities -
taxable 371,893 17,003 4.57% 427,696 18,879 4.41%
Investment
securities -
non-taxable -
FTE 98,539 6,468 6.56% 91,232 5,814 6.37%
Loans receivable
- FTE 1,521,881 120,312 7.91% 1,314,611 100,320 7.63%
---------- -------- ---------- --------
Total interest-
earning assets 2,002,231 144,291 7.21% 1,853,348 125,992 6.80%
-------- --------
Non-earning
assets 231,114 177,170
---------- ---------
Total assets $2,233,345 $2,030,518
========== ==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
--------------------
Liabilities
Interest-bearing
liabilities
Interest-bearing
transaction and
savings
deposits $ 591,874 $ 17,032 2.88% $ 530,219 $ 13,179 2.49%
Time deposits 807,765 39,200 4.85% 763,291 33,034 4.33%
---------- -------- ---------- --------
Total interest-
bearing
deposits 1,399,639 56,232 4.02% 1,293,510 46,213 3.57%
Federal funds
purchased 15,538 816 5.25% 13,889 689 4.96%
Securities sold
under agreement
to repurchase 121,751 4,746 3.90% 111,635 4,420 3.96%
FHLB and other
borrowed funds 183,248 8,982 4.90% 144,074 6,627 4.60%
Subordinated
debentures 44,620 3,002 6.73% 44,710 2,991 6.69%
---------- -------- ---------- --------
Total interest-
bearing
liabilities 1,764,796 73,778 4.18% 1,607,818 60,940 3.79%
-------- --------
Non-interest
bearing
liabilities
Non-interest-
bearing
deposits 215,212 215,075
Other
liabilities 12,781 11,611
---------- ----------
Total
liabilities 1,992,789 1,834,504
Shareholders'
equity 240,556 196,014
---------- ----------
Total liabilities
and
shareholders'
equity $2,233,345 $2,030,518
========== ==========
Net interest spread 3.03% 3.01%
Net interest
income and margin
- FTE $ 70,513 3.52% $ 65,052 3.51%
======== ========