CONWAY, Ark., July 22, 2010 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced second quarter earnings of $9.0 million, or $0.29 diluted earnings per common share, compared to $5.4 million, or $0.22 diluted earnings per common share (adjusted for the 10% stock dividend) for the same quarter in 2009. This represents a $3.5 million, or 64.6% increase in the 2010 earnings over 2009. Additionally, the $9.0 million operating earnings (net income excluding gain on acquisitions) for the second quarter of 2010 were the best operating earnings in the Company's history.
Because acquisitions are 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 second quarter of 2010 was $0.30, compared to $0.23 (adjusted for the 10% stock dividend) for the same period in 2009.
"The Company continues to be an active player in the pursuit of FDIC assisted transactions," said John Allison, Chairman. "As a result of our healthy reserves and capital levels, we remain a strong financial institution positioned to take advantage of FDIC deals as they become economically opportunistic."
"The second quarter of 2010 was another strong quarter for our company," said Randy Sims, Chief Executive Officer. "There are a lot of positives for our company this quarter; we had record quarterly net interest income, a sub 50 core efficiency ratio, a growing net interest margin and improvement in selected asset quality ratios."
Operating Highlights
Net interest income for the second quarter of 2010 was a quarterly record for the Company, increasing 23.2% to $28.0 million compared to $22.7 million for the second quarter of 2009. Net interest margin, on a fully taxable equivalent basis, was 4.30% in the quarter just ended compared to 4.08% in the second quarter of 2009, an increase of 22 basis points. The Company's ability to improve pricing on our deposits and hold the decline of interest rates on earning assets to a minimum allowed the Company to improve net interest margin.
The Company reported $8.2 million of non-interest income for the second quarter of 2010, an increase of 3.3% compared to $8.0 million for the second quarter of 2009. The most significant components of the second quarter non-interest income were $3.6 million from service charges on deposits accounts, $1.9 million from other service charges and fees, $663,000 of accretion on the FDIC indemnification asset, $650,000 from mortgage lending income and $348,000 increase in cash value of life insurance offset by a loss on sale of OREO of $404,000.
Non-interest expense for the second quarter of 2010 was $19.0 million compared to $20.3 million for the second quarter of 2009. Our core efficiency ratio improved 7.9 points to 48.2% for the second quarter of 2010 from the 56.1% reported in the second quarter of 2009. This improvement is associated with the on-going implementation of the efficiency study and the charter consolidation last year.
Financial Condition
Total non-covered loans were $1.97 billion at June 30, 2010 compared to $1.95 billion at December 31, 2009. Total deposits were $2.19 billion at June 30, 2010 compared to $1.84 billion at December 31, 2009. Total assets were $3.04 billion at June 30, 2010 compared to $2.68 billion at December 31, 2009.
Non-performing non-covered loans were $38.1 million as of June 30, 2010, of which $26.0 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 1.94% as of June 30, 2010 compared to 2.05% as of December 31, 2009. Non-performing non-covered assets were $50.1 million as of June 30, 2010, of which $32.3 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 1.83% as of June 30, 2010 compared to the 2.12% reported for December 31, 2009.
The Company's allowance for loan losses was $43.6 million at June 30, 2010, or 2.22% of total non-covered loans, compared to $43.0 million, or 2.20% of total non-covered loans, at December 31, 2009. As of June 30, 2010, the Company's allowance for loan losses equaled 114% of its total non-performing non-covered loans compared to 108% as of December 31, 2009.
Stockholders' equity was $488.6 million at June 30, 2010 compared to $465.0 million at December 31, 2009, an increase of $23.6 million. Book value per common share was $15.50 at June 30, 2010 compared to $14.71 (adjusted for the 10% stock dividend) at December 31, 2009.
New Branches
During 2010, Centennial Bank entered into two loss sharing agreements with the FDIC. Through these two transactions, the Company acquired a total of eight branch locations in Florida. These branch locations include three in Orlando, one in Winter Park, two in Longwood, one in Clermont and one in Key West. The Company plans to keep all of these branches except for one location in downtown Orlando. Presently, the Company is evaluating additional opportunities but has no firm commitments for any additional de novo branch locations.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, July 22, 2010. Interested parties can listen to this call by calling 1-877-317-6789 and asking for the Home BancShares conference call. A replay of the call will be available by calling 1-877-344-7529, Passcode: 442162, which will be available until July 30, 2010 at 4:00 p.m. CT (5:00 ET). 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 are included in its Form 10-K, filed with the Securities and Exchange Commission in March 2010.
Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Our wholly-owned subsidiary Centennial Bank provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has locations in central Arkansas, north central Arkansas, southern Arkansas, the Florida Keys, central Florida 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) | 2010 | 2010 | 2009 | 2009 | 2009 |
| ASSETS | |||||
| Cash and due from banks | $ 34,912 | $ 36,237 | $ 39,970 | $ 39,036 | $ 41,531 |
| Interest-bearing deposits with other banks | 153,302 | 156,772 | 133,520 | 84,921 | 4,553 |
| Cash and cash equivalents | 188,214 | 193,009 | 173,490 | 123,957 | 46,084 |
| Federal funds sold | 8,665 | 11,207 | 11,760 | 660 | 31,805 |
| Investment securities - available for sale | 346,621 | 362,710 | 322,115 | 315,269 | 309,989 |
| Loans receivable not covered by loss share | 1,965,489 | 1,959,666 | 1,950,285 | 1,971,039 | 1,972,704 |
| Loans receivable covered by FDIC loss share | 218,283 | 225,885 | -- | -- | -- |
| Allowance for loan losses | (43,614) | (42,845) | (42,968) | (41,210) | (41,804) |
| Loans receivable, net | 2,140,158 | 2,142,706 | 1,907,317 | 1,929,829 | 1,930,900 |
| Bank premises and equipment, net | 75,314 | 69,997 | 70,810 | 70,991 | 71,914 |
| Foreclosed assets held for sale not covered by loss share | 11,638 | 17,610 | 16,484 | 19,111 | 17,606 |
| Foreclosed assets held for sale covered by FDIC loss share | 7,420 | 8,672 | -- | -- | -- |
| FDIC indemnification asset | 85,718 | 88,274 | -- | -- | -- |
| Cash value of life insurance | 51,366 | 51,019 | 52,176 | 51,742 | 51,249 |
| Accrued interest receivable | 13,071 | 14,854 | 13,137 | 12,815 | 12,840 |
| Deferred tax asset, net | 8,689 | 10,072 | 14,777 | 13,423 | 14,669 |
| Goodwill | 53,039 | 53,039 | 53,039 | 53,039 | 53,039 |
| Core deposit and other intangibles | 6,406 | 6,989 | 4,698 | 5,160 | 5,622 |
| Mortgage servicing rights | -- | 872 | 1,090 | 1,308 | 1,526 |
| Other assets | 44,063 | 47,169 | 43,972 | 34,432 | 32,683 |
| Total assets | $ 3,040,382 | $ 3,078,199 | $ 2,684,865 | $ 2,631,736 | $ 2,579,926 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Liabilities | |||||
| Deposits: | |||||
| Demand and non-interest-bearing | $ 337,073 | $ 354,663 | $ 302,228 | $ 295,755 | $ 294,339 |
| Savings and interest-bearing transaction accounts | 833,912 | 863,988 | 714,744 | 660,533 | 661,387 |
| Time deposits | 1,015,507 | 1,002,437 | 818,451 | 823,997 | 876,339 |
| Total deposits | 2,186,492 | 2,221,088 | 1,835,423 | 1,780,285 | 1,832,065 |
| Federal funds purchased | -- | -- | -- | -- | -- |
| Securities sold under agreements to repurchase | 62,869 | 55,403 | 62,000 | 63,264 | 65,232 |
| FHLB borrowed funds | 232,416 | 254,548 | 264,360 | 282,550 | 277,640 |
| Accrued interest payable and other liabilities | 22,558 | 21,360 | 10,625 | 11,594 | 14,105 |
| Subordinated debentures | 47,439 | 47,462 | 47,484 | 47,507 | 47,530 |
| Total liabilities | 2,551,774 | 2,599,861 | 2,219,892 | 2,185,200 | 2,236,572 |
| Stockholders' equity | |||||
| Preferred stock | 49,366 | 49,320 | 49,275 | 49,230 | 49,185 |
| Common stock | 283 | 257 | 257 | 249 | 199 |
| Capital surplus | 431,343 | 363,870 | 363,519 | 349,429 | 255,009 |
| Retained earnings | 4,073 | 63,907 | 51,746 | 46,074 | 40,704 |
| Accumulated other comprehensive gain (loss) | 3,543 | 984 | 176 | 1,554 | (1,743) |
| Total stockholders' equity | 488,608 | 478,338 | 464,973 | 446,536 | 343,354 |
| Total liabilities and stockholders' equity | $ 3,040,382 | $ 3,078,199 | $ 2,684,865 | $ 2,631,736 | $ 2,579,926 |
| RATIOS | |||||
| Total loans to total deposits | 99.88% | 98.40% | 106.26% | 110.71% | 107.68% |
| Common equity to assets | 14.4% | 13.9% | 15.5% | 15.1% | 11.4% |
| Tangible common equity to tangible assets | 12.7% | 12.2% | 13.6% | 13.2% | 9.3% |
| Home BancShares, Inc. | |||||||
| Consolidated Statements of Income | |||||||
| (Unaudited) | |||||||
| Quarter Ended | Year Ended | ||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Jun. 30, | Jun. 30, | |
| (In thousands) | 2010 | 2010 | 2009 | 2009 | 2009 | 2010 | 2009 |
| Interest income | |||||||
| Loans | $ 33,136 | $ 29,866 | $ 29,625 | $ 30,056 | $ 29,389 | $ 63,002 | $ 58,527 |
| Investment securities | |||||||
| Taxable | 1,935 | 1,627 | 1,646 | 1,768 | 2,252 | 3,562 | 4,905 |
| Tax-exempt | 1,500 | 1,479 | 1,491 | 1,463 | 1,343 | 2,979 | 2,641 |
| Deposits - other banks | 81 | 85 | 89 | 7 | 8 | 166 | 20 |
| Federal funds sold | 5 | 5 | 3 | 1 | 4 | 10 | 11 |
| Total interest income | 36,657 | 33,062 | 32,854 | 33,295 | 32,996 | 69,719 | 66,104 |
| Interest expense | |||||||
| Interest on deposits | 5,872 | 5,295 | 5,704 | 6,489 | 7,131 | 11,167 | 15,249 |
| Federal funds purchased | -- | -- | -- | 2 | 2 | -- | 4 |
| FHLB borrowed funds | 2,082 | 2,177 | 2,338 | 2,379 | 2,359 | 4,259 | 4,749 |
| Securities sold under agreements to repurchase | 118 | 94 | 116 | 126 | 124 | 212 | 235 |
| Subordinated debentures | 600 | 597 | 594 | 623 | 659 | 1,197 | 1,335 |
| Total interest expense | 8,672 | 8,163 | 8,752 | 9,619 | 10,275 | 16,835 | 21,572 |
| Net interest income | 27,985 | 24,899 | 24,102 | 23,676 | 22,721 | 52,884 | 44,532 |
| Provision for loan losses | 3,750 | 3,100 | 3,850 | 3,550 | 2,750 | 6,850 | 3,750 |
| Net interest income after provision for loan losses | 24,235 | 21,799 | 20,252 | 20,126 | 19,971 | 46,034 | 40,782 |
| Non-interest income | |||||||
| Service charges on deposit accounts | 3,583 | 3,141 | 3,759 | 3,785 | 3,633 | 6,724 | 7,007 |
| Other service charges and fees | 1,899 | 1,638 | 1,527 | 1,705 | 1,841 | 3,537 | 3,625 |
| Mortgage lending income | 650 | 412 | 555 | 488 | 815 | 1,062 | 1,695 |
| Mortgage servicing income | 154 | 160 | 164 | 171 | 191 | 314 | 391 |
| Insurance commissions | 309 | 347 | 253 | 173 | 198 | 656 | 455 |
| Income from title services | 148 | 107 | 134 | 150 | 151 | 255 | 291 |
| Increase in cash value of life insurance | 348 | 428 | 435 | 495 | 574 | 776 | 1,051 |
| Dividends from FHLB, FRB & bankers' bank | 142 | 126 | 120 | 114 | 99 | 268 | 206 |
| Gain on acquisitions | -- | 11,790 | -- | -- | -- | 11,790 | -- |
| Gain on sale of SBA loans | 18 | -- | 51 | -- | -- | 18 | -- |
| Gain (loss) on sale of premises & equip, net | 12 | 207 | 4 | (21) | (19) | 219 | (12) |
| Gain (loss) on OREO, net | (404) | 159 | 97 | 4 | (28) | (245) | (145) |
| Gain (loss) on securities, net | -- | -- | 4 | -- | (3) | -- | (3) |
| FDIC indemnification accretion | 663 | 73 | -- | -- | -- | 736 | -- |
| Other income | 698 | 513 | 448 | 500 | 507 | 1,211 | 983 |
| Total non-interest income | 8,220 | 19,101 | 7,551 | 7,564 | 7,959 | 27,321 | 15,544 |
| Non-interest expense | |||||||
| Salaries and employee benefits | 9,080 | 8,534 | 7,672 | 7,987 | 8,432 | 17,614 | 17,376 |
| Occupancy and equipment | 2,973 | 2,799 | 2,549 | 2,706 | 2,667 | 5,772 | 5,344 |
| Data processing expense | 954 | 862 | 834 | 790 | 813 | 1,816 | 1,590 |
| Other operating expenses | 5,983 | 6,360 | 5,260 | 5,556 | 8,355 | 12,343 | 15,219 |
| Total non-interest expense | 18,990 | 18,555 | 16,315 | 17,039 | 20,267 | 37,545 | 39,529 |
| Income before income taxes | 13,465 | 22,345 | 11,488 | 10,651 | 7,663 | 35,810 | 16,797 |
| Income tax expense | 4,508 | 7,971 | 3,607 | 3,412 | 2,222 | 12,479 | 5,111 |
| Net income | 8,957 | 14,374 | 7,881 | 7,239 | 5,441 | 23,331 | 11,686 |
| Preferred stock dividends & accretion of discount on preferred stock | 670 | 670 | 670 | 670 | 670 | 1,340 | 1,236 |
| Net income available to common shareholders | $ 8,287 | $ 13,704 | $ 7,211 | $ 6,569 | $ 4,771 | $ 21,991 | $ 10,450 |
| Home BancShares, Inc. | |||||||
| Selected Financial Information | |||||||
| (Unaudited) | |||||||
| Quarter Ended | Year Ended | ||||||
| (Dollars and shares in thousands, | Jun. 30, | Mar. 31, | Dec. 31, | Sept. 30, | Jun. 30, | Jun. 30, | Jun. 30, |
| except per share data) | 2010 | 2010 | 2009 | 2009 | 2009 | 2010 | 2009 |
| PER SHARE DATA | |||||||
| (Adjusted for 10% Stock Dividend) | |||||||
| Diluted earnings per common share | $ 0.29 | $ 0.48 | $ 0.25 | $ 0.29 | $ 0.22 | $ 0.77 | $ 0.48 |
| Diluted cash earnings per common share | 0.30 | 0.49 | 0.26 | 0.30 | 0.23 | 0.79 | 0.50 |
| Basic earnings per common share | 0.29 | 0.48 | 0.25 | 0.29 | 0.22 | 0.78 | 0.47 |
| Dividends per share - common | 0.0545 | 0.0545 | 0.0545 | 0.0545 | 0.0545 | 0.1090 | 0.1090 |
| Book value per common share | 15.50 | 15.16 | 14.71 | 14.49 | 13.44 | 15.50 | 13.44 |
| Tangible book value per common share | 13.40 | 13.05 | 12.66 | 12.36 | 10.75 | 13.40 | 10.75 |
| STOCK INFORMATION | |||||||
| (Adjusted for 10% Stock Dividend) | |||||||
| Average common shares outstanding | 28,320 | 28,278 | 28,196 | 22,528 | 21,877 | 28,299 | 21,863 |
| Average diluted shares outstanding | 28,586 | 28,530 | 28,433 | 22,773 | 22,134 | 28,554 | 22,133 |
| End of period common shares outstanding | 28,344 | 28,288 | 28,259 | 27,424 | 21,893 | 28,344 | 21,893 |
| ANNUALIZED PERFORMANCE RATIOS | |||||||
| Return on average assets | 1.17% | 2.12% | 1.17% | 1.12% | 0.84% | 1.62% | 0.91% |
| Cash return on average assets | 1.25% | 2.21% | 1.24% | 1.19% | 0.91% | 1.70% | 0.97% |
| Return on average common equity | 7.69% | 13.28% | 6.95% | 8.46% | 6.53% | 10.42% | 7.26% |
| Cash return on average tangible common equity | 9.30% | 15.75% | 8.40% | 10.89% | 8.66% | 12.45% | 9.57% |
| Efficiency ratio | 49.39% | 40.12% | 48.39% | 51.38% | 62.67% | 44.32% | 62.40% |
| Core efficiency ratio | 48.17% | 51.41% | 49.30% | 51.38% | 56.11% | 49.69% | 57.74% |
| Net interest margin - FTE | 4.30% | 4.26% | 4.14% | 4.26% | 4.08% | 4.28% | 4.01% |
| Fully taxable equivalent adjustment | 1,067 | 1,050 | 1,106 | 1,023 | 923 | 2,117 | 1,788 |
| RECONCILIATION OF CASH EARNINGS (LOSS) | |||||||
| (Adjusted for 10% Stock Dividend) | |||||||
| GAAP net income available to common shareholders | $ 8,287 | $ 13,704 | $ 7,211 | $ 6,569 | $ 4,771 | $ 21,991 | $ 10,450 |
| Intangible amortization after-tax | 354 | 291 | 281 | 282 | 281 | 645 | 562 |
| Cash earnings | $ 8,641 | $ 13,995 | $ 7,492 | $ 6,851 | $ 5,052 | $ 22,636 | $ 11,012 |
| GAAP diluted earnings per share | $ 0.29 | $ 0.48 | $ 0.25 | $ 0.29 | $ 0.22 | $ 0.77 | $ 0.48 |
| Intangible amortization after-tax | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 |
| Diluted cash earnings per share | $ 0.30 | $ 0.49 | $ 0.26 | $ 0.30 | $ 0.23 | $ 0.79 | $ 0.50 |
| OTHER OPERATING EXPENSES | |||||||
| Advertising | $ 453 | $ 366 | $ 591 | $ 567 | $ 856 | $ 819 | $ 1,456 |
| Merger and acquisition expenses | 258 | 1,059 | (129) | 2 | 896 | 1,317 | 1,638 |
| Amortization of intangibles | 583 | 479 | 462 | 462 | 462 | 1,062 | 925 |
| Amortization of mortgage servicing rights | 218 | 218 | 218 | 218 | 218 | 436 | 365 |
| Electronic banking expense | 496 | 477 | 465 | 686 | 889 | 973 | 1,752 |
| Directors' fees | 181 | 145 | 226 | 239 | 237 | 326 | 521 |
| Due from bank service charges | 103 | 90 | 103 | 104 | 107 | 193 | 207 |
| FDIC and state assessment | 986 | 898 | 862 | 913 | 1,949 | 1,884 | 2,914 |
| Insurance | 296 | 300 | 274 | 278 | 271 | 596 | 568 |
| Legal and accounting | 356 | 388 | 38 | 74 | 368 | 744 | 803 |
| Mortgage servicing expense | 76 | 84 | 78 | 75 | 78 | 160 | 150 |
| Other professional fees | 368 | 313 | 300 | 278 | 250 | 681 | 509 |
| Operating supplies | 207 | 186 | 215 | 217 | 192 | 393 | 405 |
| Postage | 164 | 150 | 153 | 163 | 173 | 314 | 349 |
| Telephone | 152 | 138 | 145 | 164 | 181 | 290 | 359 |
| Other expense | 1,086 | 1,069 | 1,259 | 1,116 | 1,228 | 2,155 | 2,298 |
| Total other operating expenses | $ 5,983 | $ 6,360 | $ 5,260 | $ 5,556 | $ 8,355 | $ 12,343 | $ 15,219 |
| Home BancShares, Inc. | |||||
| Selected Financial Information | |||||
| (Unaudited) | |||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | |
| (Dollars in thousands) | 2010 | 2010 | 2009 | 2009 | 2009 |
| LOANS NOT COVERED BY LOSS SHARE | |||||
| Real estate | |||||
| Commercial real estate loans | |||||
| Non-farm/non-residential | $ 823,465 | $ 822,252 | $ 808,983 | $ 812,195 | $ 794,675 |
| Construction/land development | 365,779 | 363,738 | 368,723 | 353,645 | 347,028 |
| Agricultural | 26,989 | 30,943 | 33,699 | 36,675 | 38,379 |
| Residential real estate loans | |||||
| Residential 1-4 family | 376,196 | 381,451 | 382,504 | 394,626 | 407,642 |
| Multifamily residential | 65,147 | 63,602 | 62,609 | 63,025 | 72,673 |
| Total real estate | 1,657,576 | 1,661,986 | 1,656,518 | 1,660,166 | 1,660,397 |
| Consumer | 33,566 | 33,206 | 39,084 | 40,288 | 41,814 |
| Commercial and industrial | 222,403 | 231,867 | 219,847 | 220,511 | 224,043 |
| Agricultural | 23,307 | 12,122 | 10,280 | 21,126 | 21,566 |
| Other | 28,637 | 20,485 | 24,556 | 28,948 | 24,884 |
| Loans receivable not covered by loss share | 1,965,489 | 1,959,666 | 1,950,285 | 1,971,039 | 1,972,704 |
| ALLOWANCE FOR LOAN LOSSES | |||||
| Balance, beginning of period | $ 42,845 | $ 42,968 | $ 41,210 | $ 41,804 | $ 40,822 |
| Loans charged off | 4,052 | 3,720 | 2,639 | 4,491 | 2,324 |
| Recoveries of loans previously charged off | 1,071 | 497 | 547 | 347 | 556 |
| Net loans charged off | 2,981 | 3,223 | 2,092 | 4,144 | 1,768 |
| Provision for loan losses | 3,750 | 3,100 | 3,850 | 3,550 | 2,750 |
| Balance, end of period | $ 43,614 | $ 42,845 | $ 42,968 | $ 41,210 | $ 41,804 |
| Net charge-offs to average non-covered loans | 0.61% | 0.67% | 0.42% | 0.83% | 0.36% |
| Allowance for loan losses to total non-covered loans | 2.22% | 2.19% | 2.20% | 2.09% | 2.12% |
| NON-PERFORMING ASSETS | |||||
| NOT COVERED BY LOSS SHARE | |||||
| Non-performing non-covered loans | |||||
| Non-accrual non-covered loans | $ 38,069 | $ 33,907 | $ 37,056 | $ 32,585 | $ 29,977 |
| Non-covered loans past due 90 days or more | 53 | 3,915 | 2,889 | 2,089 | 5,291 |
| Total non-performing non-covered loans | 38,122 | 37,822 | 39,945 | 34,674 | 35,268 |
| Other non-performing non-covered assets | |||||
| Non-covered foreclosed assets held for sale, net | 11,638 | 17,610 | 16,484 | 19,111 | 17,606 |
| Other non-performing non-covered assets | 307 | 394 | 371 | 128 | 2 |
| Total other non-performing non-covered assets | 11,945 | 18,004 | 16,855 | 19,239 | 17,608 |
| Total non-performing non-covered assets | $ 50,067 | $ 55,826 | $ 56,800 | $ 53,913 | $ 52,876 |
| Allowance for loan losses to non-performing non-covered loans | 114.41% | 113.28% | 107.57% | 118.85% | 118.53% |
| Non-performing non-covered loans to total non-covered loans | 1.94% | 1.93% | 2.05% | 1.76% | 1.79% |
| Non-performing non-covered assets to total non-covered assets | 1.83% | 2.03% | 2.12% | 2.05% | 2.05% |
| Home BancShares, Inc. | ||||||
| Consolidated Net Interest Margin | ||||||
| (Unaudited) | ||||||
| Three Months Ended | ||||||
| June 30, 2010 | March 31, 2010 | |||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | |
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate |
| ASSETS | ||||||
| Earning assets | ||||||
| Interest-bearing balances due from banks | $ 155,563 | $ 81 | 0.21% | $ 137,747 | $ 85 | 0.25% |
| Federal funds sold | 5,948 | 5 | 0.34% | 7,361 | 5 | 0.28% |
| Investment securities - taxable | 222,483 | 1,934 | 3.49% | 194,329 | 1,627 | 3.40% |
| Investment securities - non-taxable - FTE | 137,420 | 2,427 | 7.08% | 138,128 | 2,387 | 7.01% |
| Loans receivable - FTE | 2,188,297 | 33,277 | 6.10% | 1,993,626 | 30,008 | 6.10% |
| Total interest-earning assets | 2,709,711 | 37,724 | 5.58% | 2,471,191 | 34,112 | 5.60% |
| Non-earning assets | 348,243 | 282,956 | ||||
| Total assets | $ 3,057,954 | $ 2,754,147 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Liabilities | ||||||
| Interest-bearing liabilities | ||||||
| Savings and interest-bearing transaction accounts | $ 861,757 | $ 1,305 | 0.61% | $ 756,412 | $ 1,084 | 0.58% |
| Time deposits | 1,004,269 | 4,567 | 1.82% | 862,437 | 4,211 | 1.98% |
| Total interest-bearing deposits | 1,866,026 | 5,872 | 1.26% | 1,618,849 | 5,295 | 1.33% |
| Federal funds purchased | 32 | -- | 0.00% | 44 | -- | 0.00% |
| Securities sold under agreement to repurchase | 60,803 | 118 | 0.78% | 53,795 | 94 | 0.71% |
| FHLB borrowed funds | 243,544 | 2,082 | 3.43% | 247,514 | 2,177 | 3.57% |
| Subordinated debentures | 47,453 | 600 | 5.07% | 47,476 | 597 | 5.10% |
| Total interest-bearing liabilities | 2,217,858 | 8,672 | 1.57% | 1,967,678 | 8,163 | 1.68% |
| Non-interest bearing liabilities | ||||||
| Non-interest bearing deposits | 338,208 | 306,512 | ||||
| Other liabilities | 20,070 | 12,300 | ||||
| Total liabilities | 2,576,136 | 2,286,490 | ||||
| Shareholders' equity | 481,818 | 467,657 | ||||
| Total liabilities and shareholders' equity | $ 3,057,954 | $ 2,754,147 | ||||
| Net interest spread | 4.01% | 3.92% | ||||
| Net interest income and margin - FTE | $ 29,052 | 4.30% | $ 25,949 | 4.26% | ||
| Home BancShares, Inc. | ||||||
| Consolidated Net Interest Margin | ||||||
| (Unaudited) | ||||||
| Six Months Ended | ||||||
| June 30, 2010 | June 30, 2009 | |||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | |
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate |
| ASSETS | ||||||
| Earning assets | ||||||
| Interest-bearing balances due from banks | $ 148,294 | $ 166 | 0.23% | $ 7,221 | $ 20 | 0.56% |
| Federal funds sold | 6,650 | 10 | 0.30% | 12,673 | 11 | 0.18% |
| Investment securities - taxable | 208,482 | 3,562 | 3.45% | 220,130 | 4,905 | 4.49% |
| Investment securities - non-taxable - FTE | 137,774 | 4,814 | 7.05% | 118,723 | 4,210 | 7.15% |
| Loans receivable - FTE | 2,091,764 | 63,284 | 6.10% | 1,973,420 | 58,746 | 6.00% |
| Total interest-earning assets | 2,592,964 | 71,836 | 5.59% | 2,332,167 | 67,892 | 5.87% |
| Non-earning assets | 313,912 | 262,071 | ||||
| Total assets | $ 2,906,876 | $ 2,594,238 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Liabilities | ||||||
| Interest-bearing liabilities | ||||||
| Savings and interest-bearing transaction accounts | $ 809,666 | $ 2,389 | 0.60% | $ 670,687 | $ 2,461 | 0.74% |
| Time deposits | 933,745 | 8,778 | 1.90% | 893,087 | 12,788 | 2.89% |
| Total interest-bearing deposits | 1,743,411 | 11,167 | 1.29% | 1,563,774 | 15,249 | 1.97% |
| Federal funds purchased | 38 | -- | 0.00% | 4,450 | 4 | 0.18% |
| Securities sold under agreement to repurchase | 57,319 | 212 | 0.75% | 78,348 | 235 | 0.60% |
| FHLB borrowed funds | 245,518 | 4,259 | 3.50% | 279,280 | 4,749 | 3.43% |
| Subordinated debentures | 47,464 | 1,197 | 5.09% | 47,554 | 1,335 | 5.66% |
| Total interest-bearing liabilities | 2,093,750 | 16,835 | 1.62% | 1,973,406 | 21,572 | 2.20% |
| Non-interest bearing liabilities | ||||||
| Non-interest bearing deposits | 322,157 | 275,175 | ||||
| Other liabilities | 16,192 | 10,517 | ||||
| Total liabilities | 2,432,099 | 2,259,098 | ||||
| Shareholders' equity | 474,777 | 335,140 | ||||
| Total liabilities and shareholders' equity | $ 2,906,876 | $ 2,594,238 | ||||
| Net interest spread | 3.97% | 3.67% | ||||
| Net interest income and margin - FTE | $ 55,001 | 4.28% | $ 46,320 | 4.01% | ||