CONWAY, Ark., July 17, 2008 (PRIME NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB) today announced second quarter earnings of $5.7 million, or $0.30 diluted earnings per share for the quarter ended June 30, 2008, compared to earnings of $5.1 million, or $0.29 diluted earnings per share for the same period in 2007. This represents a $593,000, or 11.7% increase in the 2008 earnings over 2007.
For the six months ended June 30, 2008, net income totaled $12.9 million, a 31.7% increase over net income of $9.8 million for the first six months of 2007. Diluted earnings per share for the first six months of 2008 were $0.69, compared to $0.56 for the comparable period in 2007, an increase of $0.13 per share or 23.2%.
Because acquisitions are 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 $0.32 and $0.30 for the second quarter of 2008 and 2007, respectively. Cash diluted earnings per share for the first six months of 2008 were $0.72, compared to $0.59 for the comparable period in 2007, an increase of $0.13 per share.
"Excluding the impairment write-down, we were able to report strong improvements in earnings combined with solid loan growth this quarter," said John Allison, Chairman and Chief Executive Officer. "With the improvements in our core earnings, growth in loans and an improved net interest margin, we are pleased with our financial performance during the second quarter of 2008."
Operating Highlights
Net interest income for the second quarter of 2008 increased 29.8% to $21.7 million compared to $16.7 million for the second quarter of 2007. Net interest margin, on a fully taxable equivalent basis, was 3.89% in the quarter just ended compared to 3.51% in the second quarter of 2007, an increase of 38 basis points. The Company's second quarter 2008 net interest margin of 3.89% reflected an increase of 11 basis points from 3.78% in the first quarter of 2008. The Company's strong loan growth which was funded by run off in the investment portfolio and deposit growth combined with improved pricing on our deposits allowed the Company to improve net interest margin.
Net interest income for the six months ended June 30, 2008 increased 29.8% to $42.6 million compared to $32.8 million for the six months ended June 30, 2007. The Company's net interest margin, on a fully taxable equivalent basis, for the six months ended June 30, 2008 was 3.83%, an increase of 36 basis points from 3.47% for the comparable period in 2007.
During the second quarter of 2008, the Company became aware that one of its investment securities had become other than temporarily impaired. As a result of this impairment the security was written-down by $2.1 million or $0.07 diluted earnings per share for the second quarter of 2008. This investment security is a pool of various other bank holding companies' subordinated debentures throughout the country. The Company has only two securities of this nature with a remaining balance of $3.9 million which was put on non-accrual at June 30, 2008. The Company will continue to monitor its investments in these subordinated debentures and make additional write-downs if appropriate.
Non-interest income for the second quarter of 2008 was $5.7 million compared with $6.6 million for the second quarter of 2007, a 13.9% decrease. The decrease in non-interest income is the result of the $2.1 million impairment on the investment security noted above. Excluding this write-down, non-interest income for the second quarter of 2008 would have been $7.7 million or an increase of $1.2 million or 17.5%. Non-interest income excluding the $2.1 million security write-down and the $6.1 million gain on sale of our equity investment in White River Bancshares for the six months ended June 30, 2008 was $15.2 million compared to $12.8 million for the six months ended June 30, 2008, a 18.6% increase. The recurring improvements are the result of various items including our acquisition of Centennial Bancshares on January 1, 2008, organic growth from service charges on deposits and other service charges and fees.
Non-interest expense for the second quarter of 2008 was $18.5 million compared with $15.5 million for the second quarter of 2007, an increase of 19.3%. Non-interest expense for the six months ended June 30, 2008 was $37.2 million compared to $30.3 million for the six months ended June 30, 2008, a 22.9% increase. The increase is primarily the result of our acquisition of Centennial Bancshares on January 1, 2008, de novo expansion, additional costs associated with our efficiency study and the normal increased cost of doing business.
Financial Condition
Total loans were $1.95 billion at June 30, 2008 compared to $1.53 billion at June 30, 2007, an increase of 28.0%. Total deposits were $1.90 billion at June 30, 2008 compared to $1.64 billion at June 30, 2007, an increase of 15.8%. Total assets were $2.61 billion at June 30, 2008, a 16.6% increase from $2.24 billion at June 30, 2007.
Nonperforming loans as a percent of total loans were 0.63% as of June 30, 2008 compared to 1.25% as of June 30, 2007. Nonperforming assets as a percent of total assets were 0.82% as of June 30, 2008 compared to 0.86% as of June 30, 2007.
The Company's allowance for loan losses was $36.6 million at June 30, 2008, or 1.87% of total loans, compared to $28.1 million, or 1.84% of total loans, at June 30, 2007. As of June 30, 2008, the Company's allowance for loan losses equaled 299% of its total nonperforming loans compared to 147% as of June 30, 2007.
Stockholders' equity was $287.9 million at June 30, 2008 compared to $238.4 million at June 30, 2007, an increase of 20.8%. Book value per common share was $15.69 at June 30, 2008 compared to $13.83 at June 30, 2007, a 13.4% increase.
Branch Expansion
During 2008, the Company opened Arkansas branch locations in Morrilton and Cabot. Presently, the Company is evaluating additional opportunities but has no firm commitments for any additional de novo branch locations.
Charter Consolidation
Management of Home BancShares, Inc. has approved the combining of all of the Company's individually charted banks into one charter. This decision is based in part on the Company's continuing efforts to improve efficiency and the results of a study conducted for the Company by the Metavante Corporation. Assuming regulatory approvals are received, the Company anticipates the consolidation will be completed in the next twelve months. The Company remains committed to its community banking philosophy and will continue to rely on local management and boards of directors.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, July 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: 420924, which will be available until July 25, 2008 at 9:00 a.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 bank 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. Three of the bank subsidiaries are located in the central Arkansas market area, a fourth serves central and southern Arkansas, 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)
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
(In thousands) 2008 2008 2007 2007 2007
-------------- ---------- ---------- ---------- ---------- ----------
ASSETS
------
Cash and due
from banks $ 60,915 $ 53,862 $ 51,468 $ 46,471 $ 51,110
Interest-
bearing
deposits
with other
banks 4,845 5,828 3,553 2,573 2,431
---------- ---------- ---------- ---------- ----------
Cash and
cash
equivalents 65,760 59,690 55,021 49,044 53,541
Federal funds
sold 7,436 37,331 76 11,145 10,182
Investment
securities -
available
for sale 383,285 403,755 430,399 447,826 458,782
Loans
receivable 1,951,272 1,866,969 1,606,994 1,560,374 1,525,013
Allowance
for loan
losses (36,563) (37,075) (29,406) (28,636) (28,112)
---------- ---------- ---------- ---------- ----------
Loans
receivable,
net 1,914,709 1,829,894 1,577,588 1,531,738 1,496,901
Bank premises
and equipment,
net 70,745 71,155 67,702 66,770 64,656
Foreclosed
assets held
for sale 5,284 5,097 5,083 4,915 182
Cash value of
life insurance 49,189 48,678 48,093 47,468 46,862
Investments in
unconsolidated
affiliates 1,424 1,424 15,084 14,982 14,836
Accrued
interest
receivable 13,962 14,649 14,321 15,186 14,847
Deferred tax
asset, net 12,420 10,583 9,163 9,499 11,023
Goodwill 49,849 49,849 37,527 37,527 37,527
Core deposit
and other
intangibles 7,471 7,934 7,702 8,141 8,580
Mortgage
servicing
rights 2,186 2,333 -- -- --
Other assets 27,899 28,773 23,871 23,431 22,002
---------- ---------- ---------- ---------- ----------
Total
assets $2,611,619 $2,571,145 $2,291,630 $2,267,672 $2,239,921
========== ========== ========== ========== ==========
LIABILITIES
AND
STOCKHOLDERS'
EQUITY
-------------
Liabilities
Deposits:
Demand
and non-
interest-
bearing $ 248,036 $ 255,532 $ 211,993 $ 217,666 $ 224,675
Savings and
interest-
bearing
transaction
accounts 722,877 687,252 582,477 569,797 612,853
Time deposits 930,890 911,954 797,736 811,108 805,485
---------- ---------- ---------- ---------- ----------
Total
deposits 1,901,803 1,854,738 1,592,206 1,598,571 1,643,013
Federal funds
purchased 8,485 -- 16,407 8,690 --
Securities
sold under
agreements
to repurchase 116,865 114,589 120,572 131,007 127,392
FHLB borrowed
funds 238,551 249,848 251,750 226,028 175,455
Accrued
interest
payable
and other
liabilities 10,440 17,936 13,067 12,204 11,061
Subordinated
debentures 47,620 47,643 44,572 44,595 44,618
---------- ---------- ---------- ---------- ----------
Total
liabilities 2,323,764 2,284,754 2,038,574 2,021,095 2,001,539
---------- ---------- ---------- ---------- ----------
Stockholders'
equity
Common stock 183 183 173 172 172
Capital
surplus 220,248 220,052 195,649 195,429 195,257
Retained
earnings 70,220 65,575 59,489 54,871 50,333
Accumulated
other
comprehensive
gain (loss) (2,796) 581 (2,255) (3,895) (7,380)
---------- ---------- ---------- ---------- ----------
Total stock-
holders'
equity 287,855 286,391 253,056 246,577 238,382
---------- ---------- ---------- ---------- ----------
Total
liabilities
and
stock-
holders'
equity $2,611,619 $2,571,145 $2,291,630 $2,267,672 $2,239,921
========== ========== ========== ========== ==========
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended
-------------------------------------------
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
(In thousands) 2008 2008 2007 2007 2007
------------------------ ------- ------- ------- ------- -------
Interest income
Loans $32,209 $33,245 $30,887 $31,116 $29,776
Investment securities
Taxable 2,996 3,762 4,011 4,133 4,273
Tax-exempt 1,199 1,168 1,093 1,043 1,025
Deposits - other banks 37 55 34 53 30
Federal funds sold 99 166 31 36 40
------- ------- ------- ------- -------
Total interest income 36,540 38,396 36,056 36,381 35,144
------- ------- ------- ------- -------
Interest expense
Interest on deposits 11,619 13,522 13,592 14,416 14,091
Federal funds purchased 20 69 170 194 247
FHLB borrowed funds 2,059 2,575 2,712 2,426 2,033
Securities sold under
agreements to
repurchase 367 588 974 1,267 1,281
Subordinated debentures 734 811 748 758 747
------- ------- ------- ------- -------
Total interest expense 14,799 17,565 18,196 19,061 18,399
------- ------- ------- ------- -------
Net interest income 21,741 20,831 17,860 17,320 16,745
Provision for loan
losses 704 4,809 1,195 547 680
------- ------- ------- ------- -------
Net interest income
after provision for
loan losses 21,037 16,022 16,665 16,773 16,065
------- ------- ------- ------- -------
Non-interest income
Service charges on
deposit accounts 3,352 3,097 3,129 2,816 2,669
Other service charges
and fees 1,849 1,763 1,294 1,342 1,334
Data processing fees 225 210 165 192 209
Mortgage lending income 606 632 385 451 478
Mortgage servicing
income 217 231 -- -- --
Insurance commissions 184 272 149 153 171
Income from title
services 189 168 138 181 238
Increase in cash value
of life insurance 513 585 626 607 617
Dividends from FHLB,
FRB & bankers' bank 227 281 259 218 207
Equity in earnings of
unconsolidated
affiliate -- 102 37 47 (56)
Gain on sale of equity
investment -- 6,102 -- -- --
Gain on sale of SBA
loans -- 101 -- -- 170
Gain (loss) on sale
of premises & equip,
net -- (2) (14) (31) 167
Gain (loss) on OREO,
net (50) (380) 54 87 73
Gain (loss) on
securities, net (2,067) -- -- -- --
Other income 422 372 432 249 306
------- ------- ------- ------- -------
Total non-interest income 5,667 13,534 6,654 6,312 6,583
------- ------- ------- ------- -------
Non-interest expense
Salaries and employee
benefits 8,931 9,278 7,560 7,739 7,757
Occupancy and equipment 2,726 2,702 2,461 2,446 2,342
Data processing expense 833 786 690 644 670
Other operating expenses 6,007 5,917 4,967 4,770 4,748
------- ------- ------- ------- -------
Total non-interest
expense 18,497 18,683 15,678 15,599 15,517
------- ------- ------- ------- -------
Income before income
taxes 8,207 10,873 7,641 7,486 7,131
Income tax expense 2,553 3,595 2,246 2,258 2,070
------- ------- ------- ------- -------
Net income $ 5,654 $ 7,278 $ 5,395 $ 5,228 $ 5,061
======= ======= ======= ======= =======
Six Months Ended
----------------
Jun. 30, Jun. 30,
(In thousands) 2008 2007
--------------------------------------------------- ------- -------
Interest income
Loans $65,454 $58,064
Investment securities
Taxable 6,758 8,859
Tax-exempt 2,367 2,051
Deposits - other banks 92 79
Federal funds sold 265 275
------- -------
Total interest income 74,936 69,328
------- -------
Interest expense
Interest on deposits 25,141 28,224
Federal funds purchased 89 452
FHLB borrowed funds 4,634 3,844
Securities sold under agreements to repurchase 955 2,505
Subordinated debentures 1,545 1,496
------- -------
Total interest expense 32,364 36,521
------- -------
Net interest income 42,572 32,807
Provision for loan losses 5,513 1,500
------- -------
Net interest income after provision for
loan losses 37,059 31,307
------- -------
Non-interest income
Service charges on deposit accounts 6,449 5,257
Other service charges and fees 3,612 2,834
Data processing fees 435 427
Mortgage lending income 1,238 826
Mortgage servicing income 448 --
Insurance commissions 456 460
Income from title services 357 394
Increase in cash value of life insurance 1,098 1,215
Dividends from FHLB, FRB & bankers' bank 508 434
Equity in earnings of unconsolidated affiliate 102 (170)
Gain on sale of equity investment 6,102 --
Gain on sale of SBA loans 101 170
Gain (loss) on sale of premises & equip, net (2) 181
Gain (loss) on OREO, net (430) 110
Gain (loss) on securities, net (2,067) --
Other income 794 650
------- -------
Total non-interest income 19,201 12,788
------- -------
Non-interest expense
Salaries and employee benefits 18,209 15,197
Occupancy and equipment 5,428 4,552
Data processing expense 1,619 1,314
Other operating expenses 11,924 9,195
------- -------
Total non-interest expense 37,180 30,258
------- -------
Income before income taxes 19,080 13,837
Income tax expense 6,148 4,015
------- -------
Net income $12,932 $ 9,822
======= =======
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter Ended
(Dollars and shares in -------------------------------------------
thousands, except per Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
share data) 2008 2008 2007 2007 2007
------------------------ ------- ------- ------- ------- -------
PER SHARE DATA
--------------
Diluted earnings per
share $ 0.30 $ 0.39 $ 0.31 $ 0.30 $ 0.29
Diluted cash earnings
per share 0.32 0.40 0.33 0.31 0.30
Basic earnings per share 0.31 0.40 0.32 0.30 0.29
Dividends per share -
common 0.055 0.050 0.045 0.040 0.035
Book value per common
share 15.69 15.62 14.67 14.30 13.83
Tangible book value per
common share 12.57 12.47 12.05 11.65 11.15
STOCK INFORMATION
-----------------
Average common shares
outstanding 18,343 18,335 17,246 17,239 17,235
Average diluted shares
outstanding 18,794 18,792 17,538 17,537 17,544
End of period common
shares outstanding 18,343 18,337 17,250 17,243 17,238
ANNUALIZED PERFORMANCE
RATIOS
----------------------
Return on average assets 0.89% 1.15% 0.94% 0.92% 0.92%
Cash return on average
assets 0.95% 1.22% 1.01% 0.99% 0.99%
Return on average equity 7.91% 10.35% 8.56% 8.60% 8.52%
Cash return on average
tangible equity 10.38% 13.53% 10.98% 11.16% 11.14%
Efficiency ratio 64.04% 51.94% 60.54% 62.47% 62.95%
Net interest margin - FTE 3.89% 3.78% 3.61% 3.55% 3.51%
Fully taxable equivalent
adjustment 752 716 659 634 623
RECONCILIATION OF
CASH EARNINGS
-----------------
GAAP net income $ 5,654 $ 7,278 $ 5,395 $ 5,228 $ 5,061
Intangible amortization
after-tax 280 282 267 267 267
------- ------- ------- ------- -------
Cash earnings $ 5,934 $ 7,560 $ 5,662 $ 5,495 $ 5,328
======= ======= ======= ======= =======
GAAP diluted earnings
per share $ 0.30 $ 0.39 $ 0.31 $ 0.30 $ 0.29
Intangible amortization
after-tax 0.02 0.01 0.02 0.01 0.01
------- ------- ------- ------- -------
Diluted cash earnings
per share $ 0.32 $ 0.40 $ 0.33 $ 0.31 $ 0.30
======= ======= ======= ======= =======
OTHER OPERATING EXPENSES
------------------------
Advertising $ 691 $ 614 $ 836 $ 646 $ 580
Amortization of
intangibles 463 462 439 439 439
Amortization of
mortgage servicing
rights 147 147 -- -- --
Electronic banking
expense 823 752 556 618 655
Directors' fees 231 231 226 225 218
Due from bank service
charges 82 62 52 55 51
FDIC and state assessment 356 315 259 266 231
Insurance 235 228 218 211 228
Legal and accounting 316 280 276 308 303
Mortgage servicing
expense 74 87 -- -- --
Other professional fees 444 833 317 201 214
Operating supplies 245 244 289 241 227
Postage 188 180 165 163 171
Telephone 233 231 263 227 233
Other expense 1,479 1,251 1,071 1,170 1,198
------- ------- ------- ------- -------
Total other
operating expenses $ 6,007 $ 5,917 $ 4,967 $ 4,770 $ 4,748
======= ======= ======= ======= =======
Six Months Ended
----------------
(Dollars and shares in thousands, Jun. 30, Jun. 30,
except per share data) 2008 2007
------- -------
PER SHARE DATA
--------------
Diluted earnings per share $ 0.69 $ 0.56
Diluted cash earnings per share 0.72 0.59
Basic earnings per share 0.71 0.57
Dividends per share - common 0.105 0.060
Book value per common share 15.69 13.83
Tangible book value per common share 12.57 11.15
STOCK INFORMATION
-----------------
Average common shares outstanding 18,339 17,227
Average diluted shares outstanding 18,796 17,516
End of period common shares outstanding 18,343 17,238
ANNUALIZED PERFORMANCE RATIOS
-----------------------------
Return on average assets 1.02% 0.90%
Cash return on average assets 1.08% 0.97%
Return on average equity 9.12% 8.41%
Cash return on average tangible equity 11.94% 11.05%
Efficiency ratio 57.33% 62.74%
Net interest margin - FTE 3.83% 3.47%
Fully taxable equivalent adjustment 1,468 1,233
RECONCILIATION OF CASH EARNINGS
-------------------------------
GAAP net income $12,932 $ 9,822
Intangible amortization after-tax 562 534
------- -------
Cash earnings $13,494 $10,356
======= =======
GAAP diluted earnings per share $ 0.69 $ 0.56
Intangible amortization after-tax 0.03 0.03
------- -------
Diluted cash earnings per share $ 0.72 $ 0.59
======= =======
OTHER OPERATING EXPENSES
------------------------
Advertising $ 1,305 $ 1,209
Amortization of intangibles 925 878
Amortization of mortgage servicing rights 294 --
Electronic banking expense 1,575 1,185
Directors' fees 462 392
Due from bank service charges 144 107
FDIC and state assessment 671 491
Insurance 463 472
Legal and accounting 596 622
Mortgage servicing expense 161 --
Other professional fees 1,277 384
Operating supplies 489 453
Postage 368 335
Telephone 464 461
Other expense 2,730 2,206
------- -------
Total other operating expenses $11,924 $ 9,195
======= =======
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
(Dollars in Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
thousands) 2008 2008 2007 2007 2007
------------- ---------- ---------- ---------- ---------- ----------
LOAN BALANCES
-------------
Real estate
Commercial
real estate
loans
Non-farm/
non-resid-
ential $ 787,824 $ 765,881 $ 607,638 $ 590,083 $ 555,466
Construct-
ion/land
development 353,415 341,442 367,422 365,236 368,632
Agricultural 24,033 24,739 22,605 22,432 32,235
Residential
real estate
loans
Residential
1-4 family 365,577 343,475 259,975 251,057 240,003
Multifamily
residential 74,065 73,220 45,428 38,528 37,559
---------- ---------- ---------- ---------- ----------
Total real
estate 1,604,914 1,548,757 1,303,068 1,267,336 1,233,895
Consumer 54,060 55,251 46,275 45,212 43,964
Commercial and
industrial 238,870 224,756 219,062 206,744 205,760
Agricultural 33,794 17,559 20,429 25,506 24,969
Other 19,634 20,646 18,160 15,576 16,425
---------- ---------- ---------- ---------- ----------
Total loans
receivable
before
allowance
for loan
losses 1,951,272 1,866,969 1,606,994 1,560,374 1,525,013
Allowance for
loan losses 36,563 37,075 29,406 28,636 28,112
---------- ---------- ---------- ---------- ----------
Total loans
receivable,
net $1,914,709 $1,829,894 $1,577,588 $1,531,738 $1,496,901
========== ========== ========== ========== ==========
Loans to
deposits 102.60% 100.66% 100.93% 97.61% 92.82%
ALLOWANCE FOR
LOAN LOSSES
-------------
Balance,
beginning of
period $ 37,075 $ 29,406 $ 28,636 $ 28,112 $ 26,934
Loans charged
off 2,483 623 486 172 68
Recoveries of
loans previously
charged off 1,267 101 61 149 566
---------- ---------- ---------- ---------- ----------
Net (recov-
eries) loans
charged off 1,216 522 425 23 (498)
Provision for
loan losses 704 4,809 1,195 547 680
Allowance for
loan loss of
acquired
institution -- 3,382 -- -- --
---------- ---------- ---------- ---------- ----------
Balance, end
of period $ 36,563 $ 37,075 $ 29,406 $ 28,636 $ 28,112
========== ========== ========== ========== ==========
Net (recoveries)
charge-offs to
average loans 0.26% 0.11% 0.11% 0.01% -0.13%
Allowance for
loan losses
to total loans 1.87% 1.99% 1.83% 1.84% 1.84%
NON-PERFORMING
ASSETS
--------------
Non-performing
loans
Non-accrual
loans $ 11,772 $ 12,033 $ 2,952 $ 2,572 $ 18,964
Loans past
due 90 days
or more 446 -- 301 150 105
---------- ---------- ---------- ---------- ----------
Total non-
performing
loans 12,218 12,033 3,253 2,722 19,069
---------- ---------- ---------- ---------- ----------
Other non-perf-
orming assets
Foreclosed
assets held
for sale 5,284 5,097 5,083 4,915 182
Non-accrual
investments 3,860 -- -- -- --
Other non-
performing
assets 59 27 15 -- 1
---------- ---------- ---------- ---------- ----------
Total other
non-perf-
orming
assets 9,203 5,124 5,098 4,915 183
---------- ---------- ---------- ---------- ----------
Total non-
performing
assets $ 21,421 $ 17,157 $ 8,351 $ 7,637 $ 19,252
========== ========== ========== ========== ==========
Allowance for
loan losses to
non-performing
loans 299.26% 308.11% 903.97% 1052.02% 147.42%
Non-performing
loans to total
loans 0.63% 0.64% 0.20% 0.17% 1.25%
Non-performing
assets to
total assets 0.82% 0.67% 0.36% 0.34% 0.86%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
-----------------------------------------------------
June 30, 2008 March 31, 2008
------------------------- -------------------------
(Dollars in Average Income/ Yield/ Average Income/ Yield/
thousands) Balance Expense Rate Balance Expense Rate
-------------- ---------- ------- ---- ---------- ------- ----
ASSETS
------
Earning assets
Interest-
bearing
balances due
from banks $ 5,093 $ 37 2.92% $ 5,397 $ 55 4.10%
Federal funds
sold 19,138 99 2.08% 22,701 166 2.94%
Investment
securities -
taxable 276,903 2,996 4.35% 324,101 3,762 4.67%
Investment
securities -
non-taxable -
FTE 111,082 1,894 6.86% 109,314 1,826 6.72%
Loans
receivable -
FTE 1,915,404 32,266 6.78% 1,831,338 33,303 7.31%
---------- ------- ---------- -------
Total
interest-
earning
assets 2,327,620 37,292 6.44% 2,292,851 39,112 6.86%
------- -------
Non-earning
assets 241,757 257,680
---------- ----------
Total
assets $2,569,377 $2,550,531
========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Liabilities
Interest-
bearing
liabilities
Savings and
interest-
bearing
transaction
accounts $ 698,084 $ 2,766 1.59% $ 650,235 $ 3,405 2.11%
Time
deposits 924,671 8,853 3.85% 917,348 10,117 4.44%
---------- ------- ---------- -------
Total
interest-
bearing
deposits 1,622,755 11,619 2.88% 1,567,583 13,522 3.47%
Federal funds
purchased 3,396 20 2.37% 6,578 69 4.22%
Securities
sold under
agreement to
repurchase 108,589 367 1.36% 117,426 588 2.01%
FHLB borrowed
funds 242,809 2,059 3.41% 276,357 2,575 3.75%
Subordinated
debentures 47,633 734 6.20% 47,656 811 6.84%
---------- ------- ---------- -------
Total
interest-
bearing
liabilities 2,025,182 14,799 2.94% 2,015,600 17,565 3.50%
------- -------
Non-interest
bearing
liabilities
Non-interest
bearing
deposits 242,148 237,028
Other
liabilities 14,493 15,155
---------- ----------
Total
liabil-
ities 2,281,823 2,267,783
Shareholders'
equity 287,554 282,748
---------- ----------
Total
liabilities
and share-
holders'
equity $2,569,377 $2,550,531
========== ==========
Net interest
spread 3.50% 3.36%
Net interest
income and
margin - FTE $22,493 3.89% $21,547 3.78%
======= =======
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Six Months Ended
-----------------------------------------------------
June 30, 2008 June 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 $ 5,245 $ 92 3.53% $ 3,052 $ 79 5.22%
Federal funds
sold 20,919 265 2.55% 10,502 275 5.28%
Investment
securities -
taxable 300,502 6,758 4.52% 391,401 8,859 4.56%
Investment
securities -
non-taxable -
FTE 110,198 3,720 6.79% 97,364 3,167 6.56%
Loans
receivable -
FTE 1,873,371 65,569 7.04% 1,478,666 58,181 7.93%
---------- ------- ---------- -------
Total
interest-
earning
assets 2,310,235 76,404 6.65% 1,980,985 70,561 7.18%
------- -------
Non-earning
assets 249,719 224,073
---------- ----------
Total
assets $2,559,954 $2,205,058
========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Liabilities
Interest-
bearing
liabilities
Savings and
interest-
bearing
transaction
accounts $ 674,159 $ 6,171 1.84% $ 603,845 $ 8,982 3.00%
Time
deposits 921,009 18,970 4.14% 800,778 19,242 4.85%
---------- ------- ---------- -------
Total
interest-
bearing
deposits 1,595,168 25,141 3.17% 1,404,623 28,224 4.05%
Federal funds
purchased 4,987 89 3.59% 16,896 452 5.39%
Securities
sold under
agreement to
repurchase 113,007 955 1.70% 117,693 2,505 4.29%
FHLB borrowed
funds 259,583 4,634 3.59% 155,927 3,844 4.97%
Subordinated
debentures 47,645 1,545 6.52% 44,642 1,496 6.76%
---------- ------- ---------- -------
Total
interest-
bearing
liabilities 2,020,390 32,364 3.22% 1,739,781 36,521 4.23%
------- -------
Non-interest
bearing
liabilities
Non-interest
bearing
deposits 239,588 217,453
Other
liabilities 14,825 12,345
---------- ----------
Total
liabil-
ities 2,274,803 1,969,579
Shareholders'
equity 285,151 235,479
---------- ----------
Total
liabilities
and share-
holders'
equity $2,559,954 $2,205,058
========== ==========
Net interest
spread 3.43% 2.95%
Net interest
income and
margin - FTE $44,040 3.83% $34,040 3.47%
======= =======