CONWAY, Ark., July 19, 2007 (PRIME NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB) today announced a 39.2% increase in the second quarter 2007 earnings over the earnings for the same period last year. The record second quarter earnings were $5.1 million, or $0.29 diluted earnings per share for the quarter ended June 30, 2007, compared to earnings of $3.6 million, or $0.25 diluted earnings per share for the same period in 2006.
For the six months ended June 30, 2007, net income totaled $9.8 million, a 37.3% increase over net income of $7.2 million for the first six months of 2006. Diluted earnings per share for the first six months of 2007 were $0.56, compared to $0.49 for the comparable period in 2006, an increase of $0.07 per share.
Because of acquisitions as both a growth and a capital management strategy, cash earnings (net income excluding amortization of intangibles after-tax) are useful in evaluating the Company. Cash diluted earnings per share were $0.30 and $0.27 for the second quarter of 2007 and 2006, respectively. Cash diluted earnings per share for the first six months of 2007 were $0.59, compared to $0.53 for the comparable period in 2006, an increase of $0.06 per share.
"With record net income and solid loan growth combined with an improvement in net interest margin, we are pleased with our financial performance during the second quarter of 2007," said John W. Allison, Chairman and Chief Executive Officer.
Operating Highlights
Net interest income for the second quarter of 2007 increased 9.0% to $16.7 million compared to $15.4 million for the second quarter of 2006. Net interest margin, on a fully taxable equivalent basis, was 3.51% in the quarter just ended compared to 3.52% in the second quarter of 2006, a modest decrease of one basis point. The Company's second quarter 2007 net interest margin of 3.51% reflected an increase of nine basis points from the first quarter's 3.42%. During 2006, competitive pressures and a slightly inverted yield curve put pressure on the Company's net interest margin. The current competitive pressures have eased somewhat during 2007 allowing the Company to improve net interest margin on a linked quarter basis by achieving strong loan growth that was funded by both the run off in the investment portfolio and more reasonably priced interest-bearing liabilities.
Net interest income for the six months ended June 30, 2007 increased 8.7% to $32.8 million compared to $30.2 million for the six months ended June 30, 2006. The Company's net interest margin, on a fully taxable equivalent basis, for the first half of 2007 was 3.47%, a decrease of six basis points from 3.53% in the first half of 2006.
Non-interest income for the second quarter of 2007 was $6.6 million compared with $4.6 million for the second quarter of 2006, a 43.1% increase. Non-interest income for the six months ended June 30, 2007 was $12.8 million compared to $9.0 million for the six months ended June 30, 2006, a 42.1% 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 second quarter of 2007 also includes a $167,000 gain on premises and equipment. This gain was associated with the final settlement of insurance proceeds associated with the damage incurred by the storm surge during hurricane Wilma, which struck the Florida Keys during the fourth quarter of 2005.
Non-interest expense for the second quarter of 2007 was $15.5 million compared with $14.1 million for the second quarter of 2006, an increase of 9.7%. Non-interest expense for the six months ended June 30, 2007 was $30.3 million compared to $27.8 million for the six months ended June 30, 2006, a 9.0% increase. The increase is the result of the continued expansion of the Florida market combined with the normal increased cost of doing business.
Financial Condition
Total loans were $1.53 billion at June 30, 2007 compared to $1.33 billion at June 30, 2006, an increase of 14.8%. Total deposits were $1.64 billion at June 30, 2007 compared to $1.52 billion at June 30, 2006, an increase of 8.1%. Total assets were $2.24 billion at June 30, 2007, a 9.6% increase from $2.04 billion at June 30, 2006.
Nonperforming loans as a percent of total loans was 1.25% as of June 30, 2007 compared to 0.60% as of June 30, 2006. Nonperforming assets as a percent of total assets were 0.86% as of June 30, 2007 compared to 0.42% as of June 30, 2006.
The Company's allowance for loan losses was $28.1 million at June 30, 2007, or 1.84% of total loans, compared to $25.2 million, or 1.90% of total loans, at June 30, 2006. As of June 30, 2007, the Company's allowance for loan losses equaled 147% of its total nonperforming loans compared to 319% as of June 30, 2006.
Mr. Allison stated, "As we have noted in previous quarterly reports, one of our acquisition and development loans in the northwest Arkansas market is experiencing cash flow problems. Even though this $11.3 million credit is not past due; we felt it prudent to put the loan on non-accrual status during the second quarter resulting in a $160,000 reduction in interest income during the quarter. We believe that this conservative stance is the right thing to do at this time and the best way to move forward. In spite of an 83 basis point increase in our non-performing loans to total loans on a linked quarter basis, we are comfortable the Company's reserves levels are adequate to absorb any losses in the loan portfolio."
Stockholders' equity was $238.4 million at June 30, 2007 compared to $210.4 million at June 30, 2006, an increase of 13.3%. Book value per common share was $13.83 at June 30, 2007 compared to book value per common share with preferred converted to common of $12.52 at June 30, 2006, a 10.5% increase. The increases in stockholders' equity and book value per share during the prior twelve months were primarily the result of the proceeds from the over-allotment associated with Company's initial public offering and retained earnings.
Branch Expansion
During the first six months of 2007, the Company opened three de novo branch locations. These branch locations are located in the Florida communities of Key West and Key Largo plus Quitman, Arkansas. Presently, the Company has plans for three additional de novo branch locations in the Arkansas communities of Searcy (2) and Bryant.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CDT (2:00 EDT) on Thursday, July 19, 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: 244181, which will be available until July 27, 2007 at 11:59 p.m. Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com under "Investor Relations" for 12 months.
General
This release contains forward-looking statements regarding the Company's plans, expectations, goals and outlook for the future. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Home BancShares Inc.'s financial results is included in the Company's Form 10-K filed with the Securities and Exchange Commission.
Home BancShares, Inc. is a financial holding company, headquartered in Conway, Arkansas, with five wholly owned bank subsidiaries that provide a broad range of commercial and retail banking and related financial services to businesses, real estate developers and investors, individuals and municipalities. Three of the bank subsidiaries are located in the central Arkansas market area, a fourth serves Stone County in north central Arkansas, and a fifth serves the Florida Keys and southwestern Florida.
Home BancShares, Inc.
Consolidated End of Period Balance Sheets
(Unaudited)
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
(In thousands) 2007 2007 2006 2006 2006
------------ ---------- ---------- ---------- ---------- ----------
ASSETS
------
Cash and due
from banks $ 51,110 $ 57,998 $ 53,004 $ 45,216 $ 50,516
Interest-
bearing
deposits
with other
banks 2,431 2,962 6,696 831 1,406
---------- ---------- ---------- ---------- ----------
Cash and
cash
equivalents 53,541 60,960 59,700 46,047 51,922
Federal funds
sold 10,182 10,685 9,003 31,081 11,102
Investment
securities -
available
for sale 458,782 476,534 531,891 509,203 515,063
Loans
receivable 1,525,013 1,475,376 1,416,295 1,387,279 1,328,351
Allowance for
loan losses (28,112) (26,934) (26,111) (25,952) (25,245)
---------- ---------- ---------- ---------- ----------
Loans
receivable,
net 1,496,901 1,448,442 1,390,184 1,361,327 1,303,106
Bank premises
and
equipment,
net 64,656 60,751 57,339 54,407 52,556
Foreclosed
assets held
for sale 182 327 435 732 611
Cash value of
life
insurance 46,862 42,746 42,149 7,008 6,954
Investments in
unconsolidated
affiliates 14,836 12,336 12,449 12,609 12,634
Accrued
interest
receivable 14,847 14,331 13,736 13,894 12,587
Deferred
tax asset,
net 11,023 8,455 8,361 9,043 11,903
Goodwill 37,527 37,527 37,527 37,527 37,527
Core deposit
and other
intangibles 8,580 9,019 9,458 9,897 10,336
Other assets 22,002 21,463 18,416 20,723 17,186
---------- ---------- ---------- ---------- ----------
Total
assets $2,239,921 $2,203,576 $2,190,648 $2,113,498 $2,043,487
========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities
Deposits:
Demand and
non-
interest-
bearing $ 224,675 $ 228,716 $ 215,142 $ 218,846 $ 230,818
Savings and
interest-
bearing
transaction
accounts 612,853 606,593 582,425 532,579 531,319
Time
deposits 805,485 792,951 809,627 806,108 757,070
---------- ---------- ---------- ---------- ----------
Total
deposits 1,643,013 1,628,260 1,607,194 1,557,533 1,519,207
Federal funds
purchased -- 25,450 25,270 -- 10,005
Securities
sold under
agreements
to
repurchase 127,392 128,335 118,825 116,339 121,826
FHLB and
other
borrowed
funds 175,455 127,842 151,768 157,117 126,319
Accrued
interest
payable and
other
liabilities 11,061 12,192 11,509 12,233 11,069
Subordinated
debentures 44,618 44,640 44,663 44,686 44,708
---------- ---------- ---------- ---------- ----------
Total
liabilities 2,001,539 1,966,719 1,959,229 1,887,908 1,833,134
---------- ---------- ---------- ---------- ----------
Stockholders'
equity
Preferred
stock A -- -- -- -- 21
Preferred
stock B -- -- -- -- 2
Common stock 172 172 172 172 146
Capital
surplus 195,257 194,930 194,595 194,406 187,847
Retained
earnings 50,333 45,875 41,544 37,496 33,687
Accumulated
other
comprehensive
loss (7,380) (4,120) (4,892) (6,484) (11,350)
---------- ---------- ---------- ---------- ----------
Total
stockholders'
equity 238,382 236,857 231,419 225,590 210,353
---------- ---------- ---------- ---------- ----------
Total
liabilities
and
stockholders'
equity $2,239,921 $2,203,576 $2,190,648 $2,113,498 $2,043,487
========== ========== ========== ========== ==========
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended
-------------------------------------------
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
(In thousands) 2007 2007 2006 2006 2006
---------------- ------- ------- ------- ------- -------
Interest income
Loans $29,776 $28,288 $27,559 $26,748 $24,003
Investment securities
Taxable 4,273 4,586 4,705 4,738 4,711
Tax-exempt 1,025 1,026 938 883 965
Deposits - other banks 30 49 36 38 24
Federal funds sold 40 235 447 51 183
------- ------- ------- ------- -------
Total interest income 35,144 34,184 33,685 32,458 29,886
------- ------- ------- ------- -------
Interest expense
Interest on deposits 14,091 14,133 13,530 12,010 11,144
Federal funds
purchased 247 205 53 178 154
FHLB and other
borrowed funds 2,033 1,811 1,840 1,825 1,486
Securities sold
under agreements
to repurchase 1,281 1,224 1,298 1,258 994
Subordinated
debentures 747 749 746 751 745
------- ------- ------- ------- -------
Total interest expense 18,399 18,122 17,467 16,022 14,523
------- ------- ------- ------- -------
Net interest income 16,745 16,062 16,218 16,436 15,363
Provision for loan
losses 680 820 584 649 590
------- ------- ------- ------- -------
Net interest income
after provision for
loan losses 16,065 15,242 15,634 15,787 14,773
------- ------- ------- ------- -------
Non-interest income
Service charges on
deposit accounts 2,669 2,588 2,778 2,354 2,263
Other service
charges and fees 1,334 1,500 906 541 584
Trust fees 30 24 184 166 169
Data processing fees 209 218 176 215 215
Mortgage banking income 478 348 451 435 439
Insurance commissions 171 289 140 153 205
Income from title
services 238 156 205 233 282
Increase in cash value
of life insurance 617 598 143 55 55
Dividends from FHLB,
FRB & bankers' bank 207 227 219 180 154
Equity in loss of
unconsolidated
affiliate (56) (114) (166) (65) (32)
Gain on sale of
SBA loans 170 -- 38 -- --
Gain on sale of
premises and
equipment, net 167 14 6 129 26
Gain on sale of
securities, net -- -- -- -- 1
Other income 349 357 349 302 238
------- ------- ------- ------- -------
Total non-interest
income 6,583 6,205 5,429 4,698 4,599
------- ------- ------- ------- -------
Non-interest expense
Salaries and
employee benefits 7,757 7,440 7,190 7,376 7,399
Occupancy and
equipment 2,342 2,210 2,361 2,223 2,123
Data processing
expense 670 644 618 651 670
Other operating
expenses 4,748 4,447 4,310 3,987 3,951
------- ------- ------- ------- -------
Total non-interest
expense 15,517 14,741 14,479 14,237 14,143
------- ------- ------- ------- -------
Income before
income taxes 7,131 6,706 6,584 6,248 5,229
Income tax expense 2,070 1,945 2,106 1,960 1,593
------- ------- ------- ------- -------
Net income $ 5,061 $ 4,761 $ 4,478 $ 4,288 $ 3,636
======= ======= ======= ======= =======
Six Months Ended
------------------
Jun. 30, Jun. 30,
2007 2006
------- -------
(In thousands)
----------------
Interest income
Loans $58,064 $45,845
Investment securities
Taxable 8,859 9,436
Tax-exempt 2,051 1,932
Deposits - other banks 79 65
Federal funds sold 275 342
------- -------
Total interest income 69,328 57,620
------- -------
Interest expense
Interest on deposits 28,224 20,673
Federal funds
purchased 452 458
FHLB and other
borrowed funds 3,844 2,962
Securities sold
under agreements
to repurchase 2,505 1,864
Subordinated
debentures 1,496 1,494
------- -------
Total interest expense 36,521 27,451
------- -------
Net interest income 32,807 30,169
Provision for loan
losses 1,500 1,074
------- -------
Net interest income
after provision for
loan losses 31,307 29,095
------- -------
Non-interest income
Service charges on
deposit accounts 5,257 4,315
Other service
charges and fees 2,834 1,195
Trust fees 54 321
Data processing fees 427 408
Mortgage banking income 826 850
Insurance commissions 460 489
Income from title
services 394 519
Increase in cash value
of life insurance 1,215 106
Dividends from FHLB,
FRB & bankers' bank 434 260
Equity in loss of
unconsolidated
affiliate (170) (148)
Gain on sale of
SBA loans 170 34
Gain on sale of
premises and
equipment, net 181 28
Gain on sale of
securities, net -- 1
Other income 706 622
------- -------
Total non-interest
income 12,788 9,000
------- -------
Non-interest expense
Salaries and
employee benefits 15,197 14,747
Occupancy and
equipment 4,552 4,128
Data processing
expense 1,314 1,237
Other operating
expenses 9,195 7,650
------- -------
Total non-interest
expense 30,258 27,762
------- -------
Income before income
taxes 13,837 10,333
Income tax expense 4,015 3,181
------- -------
Net income $ 9,822 $ 7,152
======= =======
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter Ended
-------------------------------------------------
(Dollars and shares
in thousands,
except per share Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
data) 2007 2007 2006 2006 2006
------------------- --------- --------- --------- --------- ---------
PER SHARE DATA
--------------
Diluted earnings
per share $ 0.29 $ 0.27 $ 0.26 $ 0.25 $ 0.25
Diluted cash
earnings per share 0.30 0.29 0.28 0.26 0.27
Basic earnings per
share 0.29 0.28 0.25 0.26 0.28
Dividends per share
- common 0.035 0.025 0.025 0.025 0.020
Book value per
common share 13.83 13.75 13.45 13.12 12.49
Book value per
common share with
preferred
converted to
common 13.83 13.75 13.45 13.12 12.52
Tangible book value
per common share 11.15 11.05 10.72 10.36 9.23
Tangible book value
per common share
with preferred
converted to
common 11.15 11.05 10.72 10.36 9.67
STOCK INFORMATION
-----------------
Average common
shares outstanding 17,235 17,219 17,202 16,361 12,224
Average diluted
shares outstanding 17,544 17,501 17,438 17,291 14,530
End of period
common shares
outstanding 17,238 17,222 17,206 17,196 14,647
End of period
common shares
outstanding
with preferred
converted to
common 17,238 17,222 17,206 17,196 16,807
Dividends paid on
preferred stock -- -- -- 49 155
ANNUALIZED PERFORMANCE RATIOS
-----------------------------
Return on average
assets 0.92% 0.88% 0.83% 0.83% 0.73%
Cash return on
average assets 0.99% 0.95% 0.90% 0.90% 0.81%
Return on average
equity 8.52% 8.30% 7.82% 7.81% 8.56%
Cash return on
average tangible
equity 11.14% 10.96% 10.46% 10.61% 12.80%
Efficiency ratio 62.95% 62.52% 63.10% 63.72% 66.74%
Net interest margin
- FTE 3.51% 3.42% 3.42% 3.57% 3.52%
Fully taxable
equivalent
adjustment 623 610 553 521 572
RECONCILIATION OF CASH EARNINGS
-------------------------------
GAAP net income 5,061 4,761 4,478 4,288 3,636
Intangible
amortization
after-tax 267 267 267 267 267
--------- --------- --------- --------- ---------
Cash earnings 5,328 5,028 4,745 4,555 3,903
========= ========= ========= ========= =========
GAAP diluted
earnings per share 0.29 0.27 0.26 0.25 0.25
Intangible
amortization
after-tax 0.01 0.02 0.02 0.01 0.02
--------- --------- --------- --------- ---------
Diluted cash
earnings per share 0.30 0.29 0.28 0.26 0.27
========= ========= ========= ========= =========
OTHER OPERATING EXPENSES
------------------------
Advertising $ 580 $ 629 $ 645 $ 568 $ 612
Amortization of
intangibles 439 439 439 439 439
Electronic banking
expense 655 530 359 152 160
Directors' fees 218 174 165 203 202
Due from bank
service charges 51 56 86 91 84
FDIC and state
assessment 231 260 133 142 127
Insurance 228 244 289 285 233
Legal and
accounting 303 319 278 191 274
Other professional
fees 214 170 284 204 149
Operating supplies 227 226 256 202 253
Postage 171 164 163 171 166
Telephone 233 228 220 251 284
Other expense 1,198 1,008 993 1,088 968
--------- --------- --------- --------- ---------
Total other
operating
expenses $ 4,748 $ 4,447 $ 4,310 $ 3,987 $ 3,951
========= ========= ========= ========= =========
Six Months Ended
--------------------
Jun. 30, Jun. 30,
2007 2006
-------- --------
PER SHARE DATA
--------------
Diluted earnings per share $ 0.56 $ 0.49
Diluted cash earnings per share 0.59 0.53
Basic earnings per share 0.57 0.56
Dividends per share - common 0.060 0.040
Book value per common share 13.83 12.49
Book value per common share with
preferred converted to common 13.83 12.52
Tangible book value per common share 11.15 9.23
Tangible book value per common share with
preferred converted to common 11.15 9.67
STOCK INFORMATION
-----------------
Average common shares outstanding 17,227 12,174
Average diluted shares outstanding 17,516 14,463
End of period common shares outstanding 17,238 14,647
End of period common shares outstanding
with preferred converted to common 17,238 16,807
Dividends paid on preferred stock -- 310
ANNUALIZED PERFORMANCE RATIOS
-----------------------------
Return on average assets 0.90% 0.74%
Cash return on average assets 0.97% 0.81%
Return on average equity 8.41% 8.53%
Cash return on average tangible equity 11.05% 12.83%
Efficiency ratio 62.74% 66.70%
Net interest margin - FTE 3.47% 3.53%
Fully taxable equivalent adjustment 1,233 1,155
RECONCILIATION OF CASH EARNINGS
-------------------------------
GAAP net income 9,822 7,152
Intangible amortization after-tax 534 525
-------- --------
Cash earnings 10,356 7,677
======== ========
GAAP diluted earnings per share 0.56 0.49
Intangible amortization after-tax 0.03 0.04
-------- --------
Diluted cash earnings per share 0.59 0.53
======== ========
OTHER OPERATING EXPENSES
------------------------
Advertising $ 1,209 $ 1,170
Amortization of intangibles 878 864
Electronic banking expense 1,185 278
Directors' fees 392 406
Due from bank service charges 107 154
FDIC and state assessment 491 252
Insurance 472 456
Legal and accounting 622 556
Other professional fees 384 283
Operating supplies 453 482
Postage 335 329
Telephone 461 504
Other expense 2,206 1,916
-------- --------
Total other operating expenses $ 9,195 $ 7,650
======== ========
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
(Dollars in Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
thousands) 2007 2007 2006 2006 2006
----------- ---------- ---------- ---------- ---------- ----------
LOAN BALANCES
-------------
Real estate
Commercial
real estate
loans
Non-farm/
non-
resid-
ential $ 555,466 $ 519,680 $ 465,306 $ 454,227 $ 424,645
Construction/
land
development 368,632 369,022 393,410 394,036 379,820
Agricultural 32,235 33,245 11,659 11,598 12,805
Residential
real estate
loans
Residential
1-4 family 240,003 231,788 229,588 228,347 226,129
Multifamily
residential 37,559 39,329 37,440 34,527 35,017
---------- ---------- ---------- ---------- ----------
Total real
estate 1,233,895 1,193,064 1,137,403 1,122,735 1,078,416
Consumer 43,964 42,345 45,056 43,716 41,920
Commercial and
industrial 205,760 205,531 206,559 181,673 173,715
Agricultural 24,969 16,986 13,520 26,439 22,665
Other 16,425 17,450 13,757 12,716 11,635
---------- ---------- ---------- ---------- ----------
Total loans
receivable
before
allowance
for loan
losses 1,525,013 1,475,376 1,416,295 1,387,279 1,328,351
Allowance
for loan
losses 28,112 26,934 26,111 25,952 25,245
---------- ---------- ---------- ---------- ----------
Total loans
receivable,
net $1,496,901 $1,448,442 $1,390,184 $1,361,327 $1,303,106
========== ========== ========== ========== ==========
Loans to
deposits 92.82% 90.61% 88.12% 89.07% 87.44%
ALLOWANCE FOR LOAN LOSSES
-------------------------
Balance,
beginning of
period $ 26,934 $ 26,111 $ 25,952 $ 25,245 $ 24,435
Loans charged
off 68 100 529 210 289
Recoveries of
loans
previously
charged off 566 103 104 268 509
---------- ---------- ---------- ---------- ----------
Net
(recoveries)
loans
charged off (498) (3) 425 (58) (220)
Provision for
loan losses 680 820 584 649 590
---------- ---------- ---------- ---------- ----------
Balance, end
of period $ 28,112 $ 26,934 $ 26,111 $ 25,952 $ 25,245
========== ========== ========== ========== ==========
Net
(recoveries)
charge-offs
to average
loans -0.13% 0.00% 0.12% -0.02% -0.07%
Allowance for
loan losses
to total
loans 1.84% 1.83% 1.84% 1.87% 1.90%
NON-PERFORMING ASSETS
---------------------
Non-performing
loans
Non-accrual
loans $ 18,964 $ 5,059 $ 3,905 $ 5,347 $ 6,697
Loans past
due 90 days
or more 105 1,116 641 879 1,208
---------- ---------- ---------- ---------- ----------
Total non-
performing
loans 19,069 6,175 4,546 6,226 7,905
---------- ---------- ---------- ---------- ----------
Other non-
performing
assets
Foreclosed
assets
held for
sale 182 327 435 732 611
Other non-
performing
assets 1 1 13 15 --
---------- ---------- ---------- ---------- ----------
Total other
non-
performing
assets 183 328 448 747 611
---------- ---------- ---------- ---------- ----------
Total non-
performing
assets $ 19,252 $ 6,503 $ 4,994 $ 6,973 $ 8,516
========== ========== ========== ========== ==========
Allowance for
loan losses
to non-
performing
loans 147.42% 436.18% 574.37% 416.83% 319.35%
Non-performing
loans to
total loans 1.25% 0.42% 0.32% 0.45% 0.60%
Non-performing
assets to
total assets 0.86% 0.30% 0.23% 0.33% 0.42%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
---------------------------------------------------
June 30, 2007 June 30, 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 $ 2,319 $ 30 5.19%$ 3,793 $ 49 5.24%
Federal funds
sold 3,058 40 5.25% 18,031 235 5.29%
Investment
securities -
taxable 375,609 4,273 4.56% 407,373 4,586 4.57%
Investment
securities -
non-taxable -
FTE 96,943 1,586 6.56% 97,785 1,581 6.56%
Loans
receivable -
FTE 1,506,237 29,838 7.95% 1,450,789 28,343 7.92%
---------- ------- ---------- -------
Total
interest-
earning
assets 1,984,166 35,767 7.23% 1,977,771 34,794 7.13%
-------- -------
Non-earning
assets 228,174 219,924
---------- ----------
Total assets $2,212,340 $2,197,695
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities
Interest-bearing
liabilities
Interest-
bearing
transaction
and savings
deposit $ 615,459 4,648 3.03% $ 592,101 $ 4,335 2.97%
Time deposits 780,836 9,443 4.85% 820,942 9,798 4.84%
---------- ------- ---------- -------
Total
interest-
bearing
deposits 1,396,295 14,091 4.05% 1,413,043 14,133 4.06%
Federal funds
purchased 18,379 247 5.39% 15,397 205 5.40%
Securities
sold under
agreement to
repurchase 119,610 1,281 4.30% 115,754 1,224 4.29%
FHLB and other
borrowed funds 162,880 2,033 5.01% 148,897 1,811 4.93%
Subordinated
debentures 44,631 747 6.71% 44,654 749 6.80%
---------- ------- ---------- -------
Total interest-
bearing
liabilities 1,741,795 18,399 4.24% 1,737,745 18,122 4.23%
------- -------
Non-interest
bearing
liabilities
Non-interest-
bearing
deposits 220,411 214,461
Other
liabilities 11,977 12,718
---------- -----------
Total
liabilities 1,974,183 1,964,924
Shareholders'
equity 238,157 232,771
---------- -----------
Total
liabilities
and
shareholders'
equity $2,212,340 $2,197,695
========== ==========
Net interest
spread 2.99% 2.90%
Net interest
income and
margin - FTE $17,368 3.51% $16,672 3.42%
======= =======
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Six Months Ended
---------------------------------------------------
June 30, 2007 June 30, 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 $ 3,052 $ 79 5.22% $ 2,911 $ 65 4.50%
Federal funds
sold 10,502 275 5.28% 14,651 342 4.71%
Investment
securities -
taxable 391,401 8,859 4.56% 430,514 9,436 4.42%
Investment
securities -
non-taxable -
FTE 97,364 3,167 6.56% 92,303 3,006 6.57%
Loans
receivable -
FTE 1,478,666 58,181 7.93% 1,251,476 45,926 7.40%
----------- ------- ---------- -------
Total interest-
earning assets 1,980,985 70,561 7.18% 1,791,855 58,775 6.61%
------- -------
Non-earning
assets 224,073 171,776
---------- ----------
Total assets $2,205,058 $1,963,631
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities
Interest-bearing
liabilities
Interest-
bearing
transaction
and savings
deposits 603,845 $ 8,982 3.00% $ 527,723 $ 5,965 2.28%
Time deposits 800,778 19,242 4.85% 737,137 14,708 4.02%
------- ------ ------- ------
Total
interest-
bearing
deposits 1,404,623 28,224 4.05% 1,264,860 20,673 3.30%
Federal funds
purchased 16,896 452 5.39% 19,191 458 4.81%
Securities sold
under agreement
to repurchase 117,693 2,505 4.29% 102,208 1,864 3.68%
FHLB and other
borrowed funds 155,927 3,844 4.97% 135,932 2,962 4.39%
Subordinated
debentures 44,642 1,496 6.76% 44,734 1,494 6.73%
----------- ------- ---------- -------
Total interest-
bearing
liabilities 1,739,781 36,521 4.23% 1,566,925 27,451 3.53%
------- -------
Non-interest
bearing
liabilities
Non-interest-
bearing
deposits 217,453 217,453
Other
liabilities 12,345 10,255
------- -------
Total
liabilities 1,969,579 1,794,633
Shareholders'
equity 235,479 168,998
---------- ----------
Total
liabilities and
shareholders'
equity $2,205,058 $1,963,631
========== ==========
Net interest
spread 2.95% 3.08%
Net interest
income and
margin - FTE $34,040 3.47% $31,324 3.53%
======= =======