CONWAY, Ark., Jan. 18, 2007 (PRIME NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB) today announced record net income for the year ended December 31, 2006 of $15.9 million, a 39.1% increase over net income of $11.4 million for 2005. Diluted earnings per share for 2006 were $1.00, compared to $0.82 for 2005, an increase of 22.0%. "2006 was a milestone year for our Company with the successful launch of our initial public offering and record net income for the year," said John W. Allison, Chairman and Chief Executive Officer.
Net income for the fourth quarter of 2006 was $4.5 million, a 26.0% increase over net income of $3.6 million for same period last year. Diluted earnings per share were $0.26 for the fourth quarter of 2006 compared to $0.25 for the fourth quarter of 2005, an increase of 4.0%. "With growth in diluted earnings per share on a quarterly basis, we are obviously pleased with the results for this quarter," said John W. Allison, Chairman and Chief Executive Officer. "Even though we experienced compression in our net interest margin, we were still able to achieve earnings improvements through development of our non-interest income."
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 $0.28 and $0.27 for the fourth quarter of 2006 and 2005, respectively. Cash diluted earnings per share for 2006 were $1.07, compared to $0.89 for 2005, an increase of 20.2%.
Operating Highlights
Net interest income for the fourth quarter of 2006 increased 9.7% to $16.2 million compared to $14.8 million for the fourth quarter of 2005. Net interest margin, on a fully taxable equivalent basis, was 3.42% in the quarter just ended compared to 3.48% in the fourth quarter of 2005, a decrease of six basis points. The Company's fourth quarter 2006 net interest margin of 3.42% reflected a decrease of 15 basis points from the third quarter's 3.57%. Competitive pressures and a slightly inverted yield curve have put pressure on the Company's net interest margin.
Net interest income for the year ended December 31, 2006 increased 27.0% to $62.8 million compared with $49.5 million for the year ended December 31, 2005. The Company's net interest margin, on a fully taxable equivalent basis, for 2006 was 3.51%, an increase of 14 basis points from 3.37% in 2005.
Non-interest income for the fourth quarter of 2006 was $5.4 million compared with $4.0 million for the fourth quarter of 2005, a 34.5% increase. Non-interest income for the year ended December 31, 2006 was $19.1 million compared to $15.7 million for the year ended December 31, 2005, a 21.9% 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. The 2005 acquisitions also contributed to the increase in non-interest income for the year-end comparisons.
Non-interest expense for the fourth quarter of 2006 was $14.5 million compared with $12.7 million for the fourth quarter of 2005, an increase of 13.7%. Non-interest expense for 2006 was $56.5 million compared with $44.9 million for 2005, an increase of 25.7%. On a linked quarter basis, non-interest expense for the fourth quarter of 2006 resulted in a more modest increase of 6.7% on an annualized basis. These increases are the result of the continued expansion of the Company including the 2005 acquisitions for the year-end comparisons.
Financial Condition
Total loans were $1.42 billion at December 31, 2006 compared to $1.20 billion at December 31, 2005, an increase of 17.6%. Total deposits were $1.61 billion at December 31, 2006 compared to $1.43 billion at December 31, 2005, an increase of 12.6%. Total assets were $2.19 billion at December 31, 2006, a 14.6% increase from $1.91 billion at December 31, 2005.
Nonperforming loans as a percent of total loans improved to 0.32% as of December 31, 2006 when compared to 0.69% as of December 31, 2005. Nonperforming assets as a percent of total assets were 0.23% as of December 31, 2006 compared to 0.47% as of December 31, 2005.
The Company's allowance for loan losses was $26.1 million at December 31, 2006, or 1.84% of total loans, compared to $24.2 million, or 2.01% of total loans, at December 31, 2005. As of December 31, 2006, the Company's allowance for loan losses equaled 574% of its total nonperforming loans compared to 292% as of December 31, 2005.
Stockholders' equity was $231.4 million at December 31, 2006 compared to $165.9 million at December 31, 2005, an increase of 39.5%. Book value per common share was $13.45 at December 31, 2006 compared to book value per common share with preferred converted to common of $11.63 at December 31, 2005, an 15.6% increase. The increases in stockholders' equity and book value per share were primarily the result of the proceeds from the Company's initial public offering, which was completed during 2006, and retained earnings during the prior twelve months.
Branch Expansion
During 2006, the Company opened six de novo branch locations including Arkansas's only mobile branch. These branch locations are located in the Arkansas communities of Searcy and Beebe plus Port Charlotte, Marco Island and Punta Gorda, Florida. Presently, the Company has two pending Florida de novo branch locations in Key West and Key Largo scheduled to open in 2007. Currently the Company has plans for two additional de novo branch locations in Searcy, Arkansas and one in Saline County, 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 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: 225544, which will be available until January 25, 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 S-1, as amended, filed with the Securities and Exchange Commission.
Home BancShares, Inc. is a financial holding company, headquartered in Conway, Arkansas, with five wholly owned bank subsidiaries that provide a broad range of commercial and retail banking and related financial services to businesses, real estate developers and investors, individuals and municipalities. Three of the bank subsidiaries are located in the central Arkansas market area, a fourth serves Stone County in north central Arkansas, and a fifth serves the Florida Keys and southwestern Florida.
Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)
Dec. 31, Sep. 30, Jun. 30,
(In thousands) 2006 2006 2006
---------------- ---------- ---------- ----------
ASSETS
------
Cash and due from banks $ 53,004 $ 45,216 $ 50,516
Interest-bearing deposits with
other banks 6,696 831 1,406
---------- ---------- ----------
Cash and cash equivalents 59,700 46,047 51,922
Federal funds sold 9,003 31,081 11,102
Investment securities -
available for sale 531,891 509,203 515,063
Loans receivable 1,416,295 1,387,279 1,328,351
Allowance for loan losses (26,111) (25,952) (25,245)
---------- ---------- ----------
Loans receivable, net 1,390,184 1,361,327 1,303,106
Bank premises and equipment, net 57,339 54,407 52,556
Foreclosed assets held for sale 435 732 611
Cash value of life insurance 42,149 7,008 6,954
Investments in unconsolidated
affiliates 12,449 12,609 12,634
Accrued interest receivable 13,736 13,894 12,587
Deferred tax asset, net 8,361 9,043 11,903
Goodwill 37,527 37,527 37,527
Core deposit and other
intangibles 9,458 9,897 10,336
Other assets 18,416 20,723 17,186
---------- ---------- ----------
Total assets $2,190,648 $2,113,498 $2,043,487
========== ========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
--------------------
Liabilities
Deposits:
Demand and non-interest-
bearing $ 258,673 $ 262,013 $ 230,818
Savings and interest-bearing
transaction accounts 538,894 489,412 531,319
Time deposits 809,627 806,108 757,070
---------- ---------- ----------
Total deposits 1,607,194 1,557,533 1,519,207
Federal funds purchased 25,270 -- 10,005
Securities sold under
agreements to repurchase 118,825 116,339 121,826
FHLB and other borrowed funds 151,768 157,117 126,319
Accrued interest payable and
other liabilities 11,509 12,233 11,069
Subordinated debentures 44,663 44,686 44,708
---------- ---------- ----------
Total liabilities 1,959,229 1,887,908 1,833,134
---------- ---------- ----------
Stockholders' equity
Preferred stock A -- -- 21
Preferred stock B -- -- 2
Common stock 172 172 146
Capital surplus 194,595 194,406 187,847
Retained earnings 41,544 37,496 33,687
Accumulated other
comprehensive loss (4,892) (6,484) (11,350)
Treasury stock -- -- --
---------- ---------- ----------
Total stockholders' equity 231,419 225,590 210,353
---------- ---------- ----------
Total liabilities and
stockholders' equity $2,190,648 $2,113,498 $2,043,487
========== ========== ==========
Mar. 31, Dec. 31,
2006 2005
----------- -----------
ASSETS
------
Cash and due from banks $ 42,700 $ 39,248
Interest-bearing deposits with other banks 5,323 5,431
----------- -----------
Cash and cash equivalents 48,023 44,679
Federal funds sold 19,558 7,055
Investment securities - available for sale 525,257 530,302
Loans receivable 1,246,146 1,204,589
Allowance for loan losses (24,435) (24,175)
----------- -----------
Loans receivable, net 1,221,711 1,180,414
Bank premises and equipment, net 52,376 51,762
Foreclosed assets held for sale 663 758
Cash value of life insurance 6,900 6,850
Investments in unconsolidated affiliates 12,689 9,813
Accrued interest receivable 11,540 11,158
Deferred tax asset, net 9,433 8,821
Goodwill 37,527 37,527
Core deposit and other intangibles 10,775 11,200
Other assets 14,458 11,152
----------- -----------
Total assets $ 1,970,910 $ 1,911,491
=========== ===========
LIABILITIES AND
STOCKHOLDERS' EQUITY
--------------------
Liabilities
Deposits:
Demand and non-interest-bearing $ 225,340 $ 209,974
Savings and interest-bearing
transaction accounts 538,860 512,184
Time deposits 743,243 704,950
----------- -----------
Total deposits 1,507,443 1,427,108
Federal funds purchased -- 44,495
Securities sold under agreements
to repurchase 98,545 103,718
FHLB and other borrowed funds 139,305 117,054
Accrued interest payable and
other liabilities 11,846 8,504
Subordinated debentures 44,731 44,755
----------- -----------
Total liabilities 1,801,870 1,745,634
----------- -----------
Stockholders' equity
Preferred stock A 21 21
Preferred stock B 2 2
Common stock 121 121
Capital surplus 146,638 146,285
Retained earnings 30,449 27,331
Accumulated other comprehensive loss (8,191) (7,903)
Treasury stock -- --
----------- -----------
Total stockholders' equity 169,040 165,857
----------- -----------
Total liabilities and
stockholders' equity $ 1,970,910 $ 1,911,491
=========== ===========
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended
-----------------------------------------------
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(In thousands) 2006 2006 2006 2006 2005
------------------- ------- ------- ------- ------- -------
Interest income
Loans $27,559 $26,748 $24,003 $21,842 $20,882
Investment securities
Taxable 4,705 4,738 4,711 4,725 4,612
Tax-exempt 938 883 965 967 1,011
Deposits - other
banks 36 38 24 41 43
Federal funds sold 447 51 183 159 120
------- ------- ------- ------- -------
Total interest income 33,685 32,458 29,886 27,734 26,668
------- ------- ------- ------- -------
Interest expense
Interest on deposits 13,530 12,010 11,144 9,529 8,871
Federal funds
purchased 53 178 154 304 69
FHLB and other
borrowed funds 1,840 1,825 1,486 1,476 1,358
Securities sold under
agreements to
repurchase 1,298 1,258 994 870 930
Subordinated
debentures 746 751 745 749 652
------- ------- ------- ------- -------
Total interest
expense 17,467 16,022 14,523 12,928 11,880
------- ------- ------- ------- -------
Net interest income 16,218 16,436 15,363 14,806 14,788
Provision for
loan losses 584 649 590 484 979
------- ------- ------- ------- -------
Net interest income
after provision for
loan losses 15,634 15,787 14,773 14,322 13,809
------- ------- ------- ------- -------
Non-interest income
Service charges on
deposit accounts 2,778 2,354 2,263 2,052 2,318
Other service charges
and fees 906 541 584 611 544
Trust fees 184 166 169 152 110
Data processing fees 176 215 215 193 205
Mortgage banking income 451 435 439 411 441
Insurance commissions 140 153 205 284 143
Income from title
services 205 233 282 237 218
Increase in cash
value of life
insurance 143 55 55 51 64
Dividends from FHLB,
FRB & bankers' bank 219 180 154 106 90
Equity in (loss)
income of uncon-
solidated affiliate (166) (65) (32) (116) (136)
Gain on sale of
equity investment -- -- -- -- --
Gain on sale of
SBA loans 38 -- -- 34 --
Gain on sale of
premises and
equipment 6 129 26 2 --
Gain (loss) on sale
of securities, net -- -- 1 -- --
Other income 349 302 238 384 39
------- ------- ------- ------- -------
Total non-interest
income 5,429 4,698 4,599 4,401 4,036
------- ------- ------- ------- -------
Non-interest expense
Salaries and employee
benefits 7,190 7,376 7,399 7,348 6,328
Occupancy and
equipment 2,361 2,223 2,123 2,005 2,095
Data processing
expense 618 651 670 567 569
Other operating
expenses 4,310 3,987 3,951 3,699 3,747
------- ------- ------- ------- -------
Total non-interest
expense 14,479 14,237 14,143 13,619 12,739
------- ------- ------- ------- -------
Income before taxes 6,584 6,248 5,229 5,104 5,106
Income tax expense 2,106 1,960 1,593 1,588 1,551
------- ------- ------- ------- -------
Net income $ 4,478 $ 4,288 $ 3,636 $ 3,516 $ 3,555
======= ======= ======= ======= =======
Year Ended
----------------------
Dec. 31, Dec. 31,
(In thousands) 2006 2005
---------------- --------- ---------
Interest income
Loans $ 100,152 $ 65,244
Investment securities
Taxable 18,879 17,103
Tax-exempt 3,753 2,726
Deposits - other banks 139 101
Federal funds sold 840 284
--------- ---------
Total interest income 123,763 85,458
--------- ---------
Interest expense
Interest on deposits 46,213 26,883
Federal funds purchased 689 399
FHLB and other borrowed funds 6,627 4,046
Securities sold under
agreements to repurchase 4,420 2,657
Subordinated debentures 2,991 2,017
--------- ---------
Total interest expense 60,940 36,002
--------- ---------
Net interest income 62,823 49,456
Provision for loan losses 2,307 3,827
--------- ---------
Net interest income after
provision for loan losses 60,516 45,629
--------- ---------
Non-interest income
Service charges on deposit accounts 9,447 8,319
Other service charges and fees 2,642 2,099
Trust fees 671 458
Data processing fees 799 668
Mortgage banking income 1,736 1,651
Insurance commissions 782 674
Income from title services 957 823
Increase in cash value of life insurance 304 256
Dividends from FHLB, FRB & bankers' bank 659 315
Equity in (loss) income of
unconsolidated affiliate (379) (592)
Gain on sale of equity investment -- 465
Gain on sale of SBA loans 72 529
Gain on sale of premises and equipment 163 324
Gain (loss) on sale of securities, net 1 (539)
Other income 1,273 237
--------- ---------
Total non-interest income 19,127 15,687
--------- ---------
Non-interest expense
Salaries and employee benefits 29,313 23,901
Occupancy and equipment 8,712 6,869
Data processing expense 2,506 1,991
Other operating expenses 15,947 12,174
--------- ---------
Total non-interest expense 56,478 44,935
--------- ---------
Income before taxes 23,165 16,381
Income tax expense 7,247 4,935
--------- ---------
Net income $ 15,918 $ 11,446
========= =========
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter Ended
(Dollars and shares -----------------------------------------------
in thousands, except Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
per share data) 2006 2006 2006 2006 2005
--------------------- ------- ------- ------- ------- -------
PER SHARE DATA
--------------
Diluted earnings
per share $ 0.26 $ 0.25 $ 0.25 $ 0.24 $ 0.25
Diluted cash earnings
per share 0.28 0.26 0.27 0.26 0.27
Basic earnings
per share 0.25 0.26 0.28 0.28 0.28
Dividends per share
- common 0.025 0.025 0.020 0.020 0.020
Book value per
common share 13.45 13.12 12.49 11.68 11.45
Book value per common
share with preferred
converted to common 13.45 13.12 12.52 11.83 11.63
Tangible book value
per common share 10.72 10.36 9.23 7.70 7.43
Tangible book value
per common share with
preferred converted
to common 10.72 10.36 9.67 8.45 8.21
STOCK INFORMATION
-----------------
Average common shares
outstanding 17,202 16,361 12,224 12,123 12,098
Average diluted
shares outstanding 17,438 17,291 14,530 14,392 14,330
End of period common
shares outstanding 17,206 17,196 14,647 12,129 12,114
End of period common
shares outstanding
with preferred
converted to common 17,206 17,196 16,807 14,289 14,260
Dividends paid on
preferred stock -- 49 155 155 153
ANNUALIZED PERFORMANCE
RATIOS
----------------------
Return on average
assets 0.83% 0.83% 0.73% 0.74% 0.74%
Cash return on
average assets 0.90% 0.90% 0.81% 0.81% 0.82%
Return on average
equity 7.82% 7.81% 8.56% 8.51% 8.53%
Cash return on average
tangible equity 10.46% 10.61% 12.80% 12.86% 13.14%
Efficiency ratio 63.10% 63.72% 66.74% 66.68% 63.46%
Net interest margin
- FTE 3.42% 3.57% 3.52% 3.53% 3.48%
Fully taxable
equivalent adjustment 553 521 572 583 559
RECONCILIATION OF
CASH EARNINGS
-----------------
GAAP net income 4,478 4,288 3,636 3,516 3,555
Intangible amortization
after-tax 267 267 267 258 276
------- ------- ------- ------- -------
Cash earnings 4,745 4,555 3,903 3,774 3,831
======= ======= ======= ======= =======
GAAP diluted earnings
per share 0.26 0.25 0.25 0.24 0.25
Intangible amortization
after-tax 0.02 0.01 0.02 0.02 0.02
------- ------- ------- ------- -------
Diluted cash earnings
per share 0.28 0.26 0.27 0.26 0.27
======= ======= ======= ======= =======
OTHER OPERATING
EXPENSES
---------------
Advertising $ 645 $ 568 $ 612 $ 558 $ 582
Amortization of
intangibles 439 439 439 425 438
Electronic banking
expense 359 152 160 118 114
Directors' fees 165 203 202 204 182
Due from bank service
charges 86 91 84 70 70
FDIC and state
assessment 133 142 127 125 146
Insurance 289 285 233 223 132
Legal and accounting 278 191 274 282 177
Other professional
fees 284 204 149 134 230
Operating supplies 256 202 253 229 243
Postage 163 171 166 163 173
Telephone 220 251 284 220 216
Other expense 993 1,088 968 948 1,044
------- ------- ------- ------- -------
Total other operating
expenses $ 4,310 $ 3,987 $ 3,951 $ 3,699 $ 3,747
======= ======= ======= ======= =======
Year Ended
(Dollars and shares in --------------------
thousands, except per Dec. 31, Dec. 31,
share data) 2006 2005
---------------------- ------- -------
PER SHARE DATA
--------------
Diluted earnings per share $ 1.00 $ 0.82
Diluted cash earnings per share 1.07 0.89
Basic earnings per share 1.07 0.92
Dividends per share - common 0.090 0.070
Book value per common share 13.45 11.45
Book value per common share with
preferred converted to common 13.45 11.63
Tangible book value per common share 10.72 7.43
Tangible book value per common share with
preferred converted to common 10.72 8.21
STOCK INFORMATION
-----------------
Average common shares outstanding 14,497 11,862
Average diluted shares outstanding 15,923 13,889
End of period common shares outstanding 17,206 12,114
End of period common shares outstanding with
preferred converted to common 17,206 14,260
Dividends paid on preferred stock 359 574
ANNUALIZED PERFORMANCE RATIOS
-----------------------------
Return on average assets 0.78% 0.69%
Cash return on average assets 0.86% 0.76%
Return on average equity 8.12% 7.27%
Cash return on average tangible equity 11.46% 10.16%
Efficiency ratio 64.99% 64.94%
Net interest margin - FTE 3.51% 3.37%
Fully taxable equivalent adjustment 2,229 1,790
RECONCILIATION OF CASH EARNINGS
-------------------------------
GAAP net income 15,918 11,446
Intangible amortization after-tax 1,059 891
------- -------
Cash earnings 16,977 12,337
======= =======
GAAP diluted earnings per share 1.00 0.82
Intangible amortization after-tax 0.07 0.07
------- -------
Diluted cash earnings per share 1.07 0.89
======= =======
OTHER OPERATING EXPENSES
------------------------
Advertising $ 2,383 $ 2,067
Amortization of intangibles 1,742 1,466
Electronic banking expense 789 427
Directors' fees 774 505
Due from bank service charges 331 284
FDIC and state assessment 527 503
Insurance 1,030 504
Legal and accounting 1,025 941
Other professional fees 771 534
Operating supplies 940 745
Postage 663 580
Telephone 975 669
Other expense 3,997 2,949
------- -------
Total other operating expenses $15,947 $12,174
======= =======
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Dec. 31, Sep. 30, Jun. 30,
(Dollars in thousands) 2006 2006 2006
---------------------- ---------- ---------- ----------
LOAN BALANCES
-------------
Real estate
Commercial real estate loans
Non-farm/non-residential $ 465,306 $ 454,227 $ 424,645
Construction/land development 393,410 394,036 379,820
Agricultural 11,659 11,598 12,805
Residential real estate loans
Residential 1-4 family 229,588 228,347 226,129
Multifamily residential 37,440 34,527 35,017
---------- ---------- ----------
Total real estate 1,137,403 1,122,735 1,078,416
Consumer 45,056 43,716 41,920
Commercial and industrial 206,559 181,673 173,715
Agricultural 13,520 26,439 22,665
Other 13,757 12,716 11,635
---------- ---------- ----------
Total loans receivable before
allowance for loan losses 1,416,295 1,387,279 1,328,351
Allowance for loan losses 26,111 25,952 25,245
---------- ---------- ----------
Total loans receivable, net $1,390,184 $1,361,327 $1,303,106
========== ========== ==========
Loans to deposits 88.12% 89.07% 87.44%
ALLOWANCE FOR LOAN LOSSES
-------------------------
Balance, beginning of period $ 25,952 $ 25,245 $ 24,435
Loans charged off 529 210 289
Recoveries of loans previously
charged off 104 268 509
---------- ---------- ----------
Net (recoveries) loans
charged off 425 (58) (220)
Allowance for loan losses of
acquired institutions -- -- --
Provision for loan losses 584 649 590
---------- ---------- ----------
Balance, end of period $ 26,111 $ 25,952 $ 25,245
========== ========== ==========
Net (recoveries) charge-offs
to average loans 0.12% -0.02% -0.07%
Allowance for loan losses to
total loans 1.84% 1.87% 1.90%
NON-PERFORMING ASSETS
---------------------
Non-performing loans
Non-accrual loans $ 3,905 $ 5,347 $ 6,697
Loans past due 90 days
or more 641 879 1,208
---------- ---------- ----------
Total non-performing loans 4,546 6,226 7,905
---------- ---------- ----------
Other non-performing assets
Foreclosed assets held
for sale 435 732 611
Other non-performing assets 13 15 --
---------- ---------- ----------
Total other non-performing
assets 448 747 611
---------- ---------- ----------
Total non-performing assets $ 4,994 $ 6,973 $ 8,516
========== ========== ==========
Allowance for loan losses to
non-performing loans 574.37% 416.83% 319.35%
Non-performing loans to
total loans 0.32% 0.45% 0.60%
Non-performing assets to
total assets 0.23% 0.33% 0.42%
Mar. 31, Dec. 31,
2006 2005
---------- ----------
LOAN BALANCES
-------------
Real estate
Commercial real estate loans
Non-farm/non-residential $ 422,618 $ 411,839
Construction/land development 331,532 291,515
Agricultural 13,197 13,112
Residential real estate loans
Residential 1-4 family 220,273 221,831
Multifamily residential 36,425 34,939
---------- ----------
Total real estate 1,024,045 973,236
Consumer 39,599 39,447
Commercial and industrial 166,025 175,396
Agricultural 8,287 8,466
Other 8,190 8,044
---------- ----------
Total loans receivable before
allowance for loan losses 1,246,146 1,204,589
Allowance for loan losses 24,435 24,175
---------- ----------
Total loans receivable, net $1,221,711 $1,180,414
========== ==========
Loans to deposits 82.67% 84.41%
ALLOWANCE FOR LOAN LOSSES
-------------------------
Balance, beginning of period $ 24,175 $ 23,252
Loans charged off 486 504
Recoveries of loans previously charged off 262 448
---------- ----------
Net (recoveries) loans charged off 224 56
Allowance for loan losses of acquired
institutions -- --
Provision for loan losses 484 979
---------- ----------
Balance, end of period $ 24,435 $ 24,175
========== ==========
Net (recoveries) charge-offs to
average loans 0.07% 0.02%
Allowance for loan losses to total loans 1.96% 2.01%
NON-PERFORMING ASSETS
---------------------
Non-performing loans
Non-accrual loans $ 7,824 $ 7,864
Loans past due 90 days or more 411 426
---------- ----------
Total non-performing loans 8,235 8,290
---------- ----------
Other non-performing assets
Foreclosed assets held for sale 663 758
Other non-performing assets 4 11
---------- ----------
Total other non-performing assets 667 769
---------- ----------
Total non-performing assets $ 8,902 $ 9,059
========== ==========
Allowance for loan losses to
non-performing loans 296.72% 291.62%
Non-performing loans to total loans 0.66% 0.69%
Non-performing assets to total assets 0.45% 0.47%
Home BancShares Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
-------------------------------
December 31, 2006
-------------------------------
Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate
--------------------- ---------- ------- ------
ASSETS
------
Earning assets
Interest-bearing balances due
from banks $ 3,004 $ 36 4.75%
Federal funds sold 34,080 447 5.20%
Investment securities - taxable 431,131 4,705 4.33%
Investment securities -
non-taxable - FTE 88,391 1,447 6.49%
Loans receivable - FTE 1,388,843 27,603 7.89%
---------- -------
Total interest-earning assets 1,945,449 34,238 6.98%
-------
Non-earning assets 187,114
----------
Total assets $2,132,563
==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
--------------------
Liabilities
Interest-bearing liabilities
Interest-bearing transaction and
savings deposits $ 505,730 $ 3,857 3.03%
Time deposits 809,312 9,673 4.74%
---------- -------
Total interest-bearing deposits 1,315,042 13,530 4.08%
Federal funds purchased 3,980 53 5.28%
Securities sold under agreement
to repurchase 123,023 1,298 4.19%
FHLB and other borrowed funds 150,247 1,840 4.86%
Subordinated debentures 44,676 746 6.62%
---------- -------
Total interest-bearing
liabilities 1,636,968 17,467 4.23%
-------
Non-interest bearing liabilities
Non-interest-bearing deposits 254,650
Other liabilities 13,708
----------
Total liabilities 1,905,326
Shareholders' equity 227,237
----------
Total liabilities and
shareholders' equity $2,132,563
==========
Net interest spread 2.75%
Net interest income and margin - FTE $16,771 3.42%
=======
Three Months Ended
-------------------------------
September 30, 2006
-------------------------------
Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate
--------------------- ---------- ------- ------
ASSETS
------
Earning assets
Interest-bearing balances due
from banks $ 2,927 $ 38 5.15%
Federal funds sold 3,887 51 5.21%
Investment securities - taxable 418,753 4,738 4.49%
Investment securities -
non-taxable - FTE 91,931 1,361 5.87%
Loans receivable - FTE 1,364,587 26,791 7.79%
---------- -------
Total interest-earning assets 1,882,085 32,979 6.95%
-------
Non-earning assets 177,846
----------
Total assets $2,059,931
==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
--------------------
Liabilities
Interest-bearing liabilities
Interest-bearing transaction and
savings deposits $ 473,482 $ 3,358 2.81%
Time deposits 769,271 8,652 4.46%
---------- -------
Total interest-bearing deposits 1,242,753 12,010 3.83%
Federal funds purchased 13,232 178 5.34%
Securities sold under agreement
to repurchase 118,796 1,258 4.20%
FHLB and other borrowed funds 153,921 1,825 4.70%
Subordinated debentures 44,699 751 6.67%
---------- -------
Total interest-bearing
liabilities 1,573,401 16,022 4.04%
-------
Non-interest bearing liabilities
Non-interest-bearing deposits 256,407
Other liabilities 12,179
----------
Total liabilities 1,841,987
Shareholders' equity 217,944
----------
Total liabilities and
shareholders' equity $2,059,931
==========
Net interest spread 2.91%
Net interest income and margin - FTE $16,957 3.57%
=======
Home BancShares Inc.
Consolidated Net Interest Margin
(Unaudited)
Years Ended
-------------------------------
December 31, 2006
-------------------------------
Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate
--------------------- ---------- ------- ------
ASSETS
------
Earning assets
Interest-bearing balances due
from banks $ 2,939 $ 139 4.73%
Federal funds sold 16,870 840 4.98%
Investment securities - taxable 427,696 18,879 4.41%
Investment securities -
non-taxable - FTE 91,232 5,814 6.37%
Loans receivable - FTE 1,314,611 100,320 7.63%
---------- -------
Total interest-earning assets 1,853,348 125,992 6.80%
-------
Non-earning assets 177,170
----------
Total assets $2,030,518
==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
--------------------
Liabilities
Interest-bearing liabilities
Interest-bearing transaction and
savings deposits $ 492,758 $13,179 2.67%
Time deposits 763,291 33,034 4.33%
---------- -------
Total interest-bearing deposits 1,256,049 46,213 3.68%
Federal funds purchased 13,889 689 4.96%
Securities sold under agreement
to repurchase 111,635 4,420 3.96%
FHLB and other borrowed funds 144,074 6,627 4.60%
Subordinated debentures 44,710 2,991 6.69%
---------- -------
Total interest-bearing
liabilities 1,570,357 60,940 3.88%
-------
Non-interest bearing liabilities
Non-interest-bearing deposits 252,536
Other liabilities 11,611
----------
Total liabilities 1,834,504
Shareholders' equity 196,014
----------
Total liabilities and
shareholders' equity $2,030,518
==========
Net interest spread 2.92%
Net interest income and margin - FTE $65,052 3.51%
=======
Years Ended
-------------------------------
December 31, 2005
-------------------------------
Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate
--------------------- ---------- ------- ------
ASSETS
------
Earning assets
Interest-bearing balances due
from banks $ 3,159 $ 101 3.20%
Federal funds sold 8,048 284 3.53%
Investment securities - taxable 442,168 17,103 3.87%
Investment securities -
non-taxable - FTE 66,960 4,301 6.42%
Loans receivable - FTE 1,000,906 65,459 6.54%
---------- -------
Total interest-earning assets 1,521,241 87,248 5.74%
-------
Non-earning assets 137,601
----------
Total assets $1,658,842
==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
--------------------
Liabilities
Interest-bearing liabilities
Interest-bearing transaction and
savings deposits $ 447,433 $ 8,267 1.85%
Time deposits 624,692 18,616 2.98%
---------- -------
Total interest-bearing deposits 1,072,125 26,883 2.51%
Federal funds purchased 13,996 399 2.85%
Securities sold under agreement
to repurchase 85,876 2,657 3.09%
FHLB and other borrowed funds 109,323 4,046 3.70%
Subordinated debentures 29,408 2,017 6.86%
---------- -------
Total interest-bearing
liabilities 1,310,728 36,002 2.75%
-------
Non-interest bearing liabilities
Non-interest-bearing deposits 177,511
Other liabilities 13,125
----------
Total liabilities 1,501,364
Shareholders' equity 157,478
----------
Total liabilities and
shareholders' equity $1,658,842
==========
Net interest spread 2.99%
Net interest income and margin
- FTE $51,246 3.37%
=======