|
| |||||||||||||||||||||||
Home BancShares, Inc. Announces 25.6 Percent Increase in Earnings CONWAY, Ark., Oct. 16, 2008 (GLOBE NEWSWIRE) -- Home BancShares,
Inc. (NasdaqGS:HOMB - News) today announced third quarter earnings
of $6.6 million, or $0.32 diluted earnings per share for
the quarter ended September 30, 2008, compared to earnings
of $5.2 million, or $0.28 diluted earnings per share for
the same period in 2007. This represents a $1.4 million,
or 25.6% increase in the 2008 earnings over 2007.
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 were $0.34 and $0.29 for the third quarter of 2008 and 2007, respectively, an increase of $0.05 per share. Cash diluted earnings per share for the first nine months of 2008 were $1.00, compared to $0.84 for the comparable period in 2007, an increase of $0.16 per share. ``This was a solid quarter for our Company, especially considering the current worldwide financial crisis,'' said John Allison, Chairman and Chief Executive Officer. ``We are confident that our Company is well positioned with healthy reserves and capital levels. We believe that the Company will continue to be a strong performer during these turbulent times. This confidence in our Company is also shared by others, as we have been recently included in Sandler O'Neill's Sm-All Star list for 2008 identifying the top high quality small-cap banks and thrifts in the nation.'' During the third quarter of 2008, we were one of 33 banks and thrifts that comprise the Sandler O'Neill Sm-All Stars - Class of 2008. Five hundred seventy-four publicly traded banks and thrifts with a market cap of less than $2 billion were evaluated to determine the small-cap depository institutions that are excelling among their peer group. The objective of the Sm-All Stars is to identify the top performing small-cap banks and thrifts in the nation. Sandler O'Neill's evaluation focused primarily on growth, profitability, credit quality, and capital strength. Operating Highlights Net interest income for the third quarter of 2008 increased 26.2% to $21.9 million compared to $17.3 million for the third quarter of 2007. Net interest margin, on a fully taxable equivalent basis, was 3.82% in the quarter just ended compared to 3.55% in the third quarter of 2007, an increase of 27 basis points. The Company's third quarter 2008 net interest margin of 3.82% reflected a slight decrease of 7 basis points from 3.89% in the second 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 from 2007 to 2008. The slight decrease in the 2008 linked quarters is a result of our $3.8 million increase in non-accrual loans. Net interest income for the nine months ended September 30, 2008 increased 28.5% to $64.4 million compared to $50.1 million for the nine months ended September 30, 2007. The Company's net interest margin, on a fully taxable equivalent basis, for the nine months ended September 30, 2008 was 3.83%, an increase of 34 basis points from 3.49% for the comparable period in 2007. Non-interest income for the third quarter of 2008 was $7.8 million compared with $6.3 million for the third quarter of 2007, a 23.3% increase. Non-interest income for the nine months ended September 30, 2008 was $27.0 million compared to $19.1 million for the nine months ended September 30, 2008, a 41.3% 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 third quarter of 2008 was $18.5 million compared with $15.6 million for the third quarter of 2007, an increase of 18.5%. Non-interest expense for the nine months ended September 30, 2008 was $55.7 million compared to $45.9 million for the nine months ended September 30, 2008, a 21.4% 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 $1.97 billion at September 30, 2008 compared to $1.56 billion at September 30, 2007, an increase of 26.1%. Total deposits were $1.91 billion at September 30, 2008 compared to $1.60 billion at September 30, 2007, an increase of 19.7%. Total assets were $2.65 billion at September 30, 2008, a 16.9% increase from $2.27 billion at September 30, 2007. Nonperforming loans as a percent of total loans were 0.82% as of September 30, 2008 compared to 0.17% as of September 30, 2007. Nonperforming assets as a percent of total assets were 1.11% as of September 30, 2008 compared to 0.34% as of September 30, 2007. The Company's allowance for loan losses was $36.4 million at September 30, 2008, or 1.85% of total loans, compared to $28.6 million, or 1.84% of total loans, at September 30, 2007. As of September 30, 2008, the Company's allowance for loan losses equaled 226% of its total nonperforming loans compared to 1,052% as of September 30, 2007. Stockholders' equity was $291.0 million at September 30, 2008 compared to $246.6 million at September 30, 2007, an increase of 18.0%. Book value per common share was $14.68 at September 30, 2008 compared to $13.24 at September 30, 2007, a 10.9% 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 six of the Company's individually charted banks into one charter. The six banks will adopt Centennial Bank as their common name. Assuming regulatory approvals are received, we are projecting name changes to Centennial Bank and charter consolidations will be phased in beginning in late 2008 when First State Bank and Marine Bank will be the first to consolidate and adopt the new name. Community Bank and Bank of Mountain View will follow suit in the first quarter of 2009, and Twin City Bank and the current Centennial Bank will complete the process in the summer of 2009. All of the banks will, at that time, have the same name, logo and charter allowing for a more customer-friendly banking experience and seamless transactions across all of our banks. Conference Call Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, October 16, 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: 423241, which will be available until October 28, 2008 at 2:00 p.m. ET. Internet access to the call will be available live or in recorded version on the Company's website at http://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. Recently, the Company announced plans to combine the charters of its six banks into a single charter and adopt Centennial Bank as their common name. This combination is expected to be completed by the middle of next year. 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)
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
(In thousands) 2008 2008 2008 2007 2007
------------- ---------- ---------- ---------- ---------- ----------
ASSETS
------
Cash and due
from banks $ 50,445 $ 60,915 $ 53,862 $ 51,468 $ 46,471
Interest-
bearing
deposits
with other
banks 10,290 4,845 5,828 3,553 2,573
---------- ---------- ---------- ---------- ----------
Cash and
cash
equivalents 60,735 65,760 59,690 55,021 49,044
Federal funds
sold 28,347 7,436 37,331 76 11,145
Investment
securities -
available
for sale 381,564 383,285 403,755 430,399 447,826
Loans
receivable 1,967,923 1,951,272 1,866,969 1,606,994 1,560,374
Allowance for
loan losses (36,372) (36,563) (37,075) (29,406) (28,636)
---------- ---------- ---------- ---------- ----------
Loans
receivable,
net 1,931,551 1,914,709 1,829,894 1,577,588 1,531,738
Bank premises
and equipment,
net 70,500 70,745 71,155 67,702 66,770
Foreclosed
assets held
for sale 9,392 5,284 5,097 5,083 4,915
Cash value
of life
insurance 49,731 49,189 48,678 48,093 47,468
Investments in
unconsolidated
affiliates 1,424 1,424 1,424 15,084 14,982
Accrued
interest
receivable 13,804 13,962 14,649 14,321 15,186
Deferred tax
asset, net 14,530 12,420 10,583 9,163 9,499
Goodwill 50,038 49,849 49,849 37,527 37,527
Core deposit
and other
intangibles 7,009 7,471 7,934 7,702 8,141
Mortgage
servicing
rights 2,039 2,186 2,333 -- --
Other assets 29,926 27,899 28,773 23,871 23,431
---------- ---------- ---------- ---------- ----------
Total
assets $2,650,590 $2,611,619 $2,571,145 $2,291,630 $2,267,672
========== ========== ========== ========== ==========
LIABILITIES
AND
STOCKHOLDERS'
EQUITY
-------------
Liabilities
Deposits:
Demand
and non-
interest-
bearing $263,410 $ 248,036 $ 255,532 $ 211,993 $ 217,666
Savings and
interest-
bearing
transaction
accounts 680,217 722,877 687,252 582,477 569,797
Time
deposits 969,444 930,890 911,954 797,736 811,108
---------- ---------- ---------- ---------- ----------
Total
deposits 1,913,071 1,901,803 1,854,738 1,592,206 1,598,571
Federal funds
purchased -- 8,485 -- 16,407 8,690
Securities
sold under
agreements
to repurchase 108,350 116,865 114,589 120,572 131,007
FHLB borrowed
funds 278,182 238,551 249,848 251,750 226,028
Accrued
interest
payable and
other
liabilities 12,350 10,440 17,936 13,067 12,204
Subordinated
debentures 47,598 47,620 47,643 44,572 44,595
---------- ---------- ---------- ---------- ----------
Total
liabilities 2,359,551 2,323,764 2,284,754 2,038,574 2,021,095
---------- ---------- ---------- ---------- ----------
Stockholders'
equity
Common stock 198 183 183 173 172
Capital
surplus 252,836 220,248 220,052 195,649 195,429
Retained
earnings 43,310 70,220 65,575 59,489 54,871
Accumulated
other
comprehensive
gain (loss) (5,305) (2,796) 581 (2,255) (3,895)
---------- ---------- ---------- ---------- ----------
Total
stock-
holders'
equity 291,039 287,855 286,391 253,056 246,577
---------- ---------- ---------- ---------- ----------
Total
liabilities
and stock-
holders'
equity $2,650,590 $2,611,619 $2,571,145 $2,291,630 $2,267,672
========== ========== ========== ========== ==========
Home BancShares, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended
--------------------------------------------
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
(In thousands) 2008 2008 2008 2007 2007
---------------------- -------- -------- -------- -------- --------
Interest income
Loans $31,831 $32,209 $33,245 $30,887 $31,116
Investment securities
Taxable 2,982 2,996 3,762 4,011 4,133
Tax-exempt 1,216 1,199 1,168 1,093 1,043
Deposits - other banks 35 37 55 34 53
Federal funds sold 24 99 166 31 36
------- ------- ------- ------- -------
Total interest income 36,088 36,540 38,396 36,056 36,381
------- ------- ------- ------- -------
Interest expense
Interest on deposits 10,752 11,619 13,522 13,592 14,416
Federal funds purchased 79 20 69 170 194
FHLB borrowed funds 2,239 2,059 2,575 2,712 2,426
Securities sold under
agreements to
repurchase 394 367 588 974 1,267
Subordinated debentures 769 734 811 748 758
------- ------- ------- ------- -------
Total interest expense 14,233 14,799 17,565 18,196 19,061
------- ------- ------- ------- -------
Net interest income 21,855 21,741 20,831 17,860 17,320
Provision for loan
losses 1,439 704 4,809 1,195 547
------- ------- ------- ------- -------
Net interest income
after provision for
loan losses 20,416 21,037 16,022 16,665 16,773
------- ------- ------- ------- -------
Non-interest income
Service charges on
deposit accounts 3,557 3,352 3,097 3,129 2,816
Other service charges
and fees 1,698 1,699 1,654 1,294 1,342
Data processing fees 239 225 210 165 192
Mortgage lending income 695 706 741 385 451
Mortgage servicing
income 206 217 231 -- --
Insurance commissions 164 184 272 149 153
Income from title
services 141 189 168 138 181
Increase in cash value
of life insurance 544 513 585 626 607
Dividends from FHLB,
FRB & bankers' bank 194 227 281 259 218
Equity in earnings of
unconsolidated
affiliate -- -- 102 37 47
Gain on sale of
equity investment -- -- 6,102 -- --
Gain on sale of SBA
loans 26 -- 101 -- --
Gain (loss) on sale of
premises & equip, net -- -- (2) (14) (31)
Gain (loss) on OREO,
net (28) (50) (380) 54 87
Gain (loss) on
securities, net -- (2,067) -- -- --
Other income 348 472 372 432 249
------- ------- ------- ------- -------
Total non-interest income 7,784 5,667 13,534 6,654 6,312
------- ------- ------- ------- -------
Non-interest expense
Salaries and employee
benefits 8,739 8,931 9,278 7,560 7,739
Occupancy and equipment 2,825 2,726 2,702 2,461 2,446
Data processing expense 815 833 786 690 644
Other operating
expenses 6,099 6,007 5,917 4,967 4,770
------- ------- ------- ------- -------
Total non-interest
expense 18,478 18,497 18,683 15,678 15,599
------- ------- ------- ------- -------
Income before income
taxes 9,722 8,207 10,873 7,641 7,486
Income tax expense 3,158 2,553 3,595 2,246 2,258
------- ------- ------- ------- -------
Net income $ 6,564 $ 5,654 $ 7,278 $ 5,395 $ 5,228
======= ======= ======= ======= =======
Nine Months Ended
-----------------
Sep. 30, Sep. 30,
(In thousands) 2008 2007
-------------------------------------------------- -------- --------
Interest income
Loans $97,285 $89,180
Investment securities
Taxable 9,740 12,992
Tax-exempt 3,583 3,094
Deposits - other banks 127 132
Federal funds sold 289 311
------- -------
Total interest income 111,024 105,709
------- -------
Interest expense
Interest on deposits 35,893 42,640
Federal funds purchased 168 646
FHLB borrowed funds 6,873 6,270
Securities sold under agreements to repurchase 1,349 3,772
Subordinated debentures 2,314 2,254
------- -------
Total interest expense 46,597 55,582
------- -------
Net interest income 64,427 50,127
Provision for loan losses 6,952 2,047
------- -------
Net interest income after provision for
loan losses 57,475 48,080
------- -------
Non-interest income
Service charges on deposit accounts 10,006 8,073
Other service charges and fees 5,051 4,176
Data processing fees 674 619
Mortgage lending income 2,142 1,277
Mortgage servicing income 654 --
Insurance commissions 620 613
Income from title services 498 575
Increase in cash value of life insurance 1,642 1,822
Dividends from FHLB, FRB & bankers' bank 702 652
Equity in earnings of unconsolidated affiliate 102 (123)
Gain on sale of equity investment 6,102 --
Gain on sale of SBA loans 127 170
Gain (loss) on sale of premises & equip, net (2) 150
Gain (loss) on OREO, net (458) 197
Gain (loss) on securities, net (2,067) --
Other income 1,192 899
------- -------
Total non-interest income 26,985 19,100
------- -------
Non-interest expense
Salaries and employee benefits 26,948 22,936
Occupancy and equipment 8,253 6,998
Data processing expense 2,434 1,958
Other operating expenses 18,023 13,965
------- -------
Total non-interest expense 55,658 45,857
------- -------
Income before income taxes 28,802 21,323
Income tax expense 9,306 6,273
------- -------
Net income $19,496 $15,050
======= =======
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
Quarter Ended
(Dollars and shares --------------------------------------------
in thousands, except Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
per share data) 2008 2008 2008 2007 2007
----------------------- -------- -------- -------- -------- --------
PER SHARE DATA
--------------
(Adjusted for 8%
Stock Dividend)
Diluted earnings per
share $ 0.32 $ 0.28 $ 0.36 $ 0.28 $ 0.28
Diluted cash earnings
per share 0.34 0.29 0.37 0.30 0.29
Basic earnings per share 0.32 0.29 0.37 0.29 0.28
Dividends per share -
common 0.060 0.051 0.046 0.042 0.037
Book value per common
share 14.68 14.53 14.46 13.58 13.24
Tangible book value per
common share 11.80 11.64 11.55 11.16 10.79
STOCK INFORMATION
-----------------
(Adjusted for 8%
Stock Dividend)
Average common shares
outstanding 19,814 19,810 19,802 18,626 18,618
Average diluted shares
outstanding 20,323 20,298 20,295 18,941 18,940
End of period common
shares outstanding 19,823 19,810 19,804 18,630 18,622
ANNUALIZED PERFORMANCE
RATIOS
----------------------
Return on average assets 1.00% 0.89% 1.15% 0.94% 0.92%
Cash return on average
assets 1.07% 0.95% 1.22% 1.01% 0.99%
Return on average equity 9.02% 7.91% 10.35% 8.56% 8.60%
Cash return on average
tangible equity 11.72% 10.38% 13.53% 10.98% 11.16%
Efficiency ratio 59.25% 64.04% 51.94% 60.54% 62.47%
Net interest margin -
FTE 3.82% 3.89% 3.78% 3.61% 3.55%
Fully taxable equivalent
adjustment 768 752 716 659 634
RECONCILIATION OF
CASH EARNINGS
-----------------
(Adjusted for 8%
Stock Dividend)
GAAP net income $ 6,564 $ 5,654 $ 7,278 $ 5,395 $ 5,228
Intangible amortization
after-tax 281 280 282 267 267
------- ------- ------- ------- -------
Cash earnings $ 6,845 $ 5,934 $ 7,560 $ 5,662 $ 5,495
======= ======= ======= ======= =======
GAAP diluted earnings
per share $ 0.32 $ 0.28 $ 0.36 $ 0.28 $ 0.28
Intangible amortization
after-tax 0.02 0.01 0.01 0.02 0.01
------- ------- ------- ------- -------
Diluted cash earnings
per share $ 0.34 $ 0.29 $ 0.37 $ 0.30 $ 0.29
======= ======= ======= ======= =======
OTHER OPERATING
EXPENSES
----------------
Advertising $ 670 $ 691 $ 614 $ 836 $ 646
Amortization of
intangibles 462 463 462 439 439
Amortization of mortgage
servicing rights 148 147 147 -- --
Electronic banking
expense 740 823 752 556 618
Directors' fees 254 231 231 226 225
Due from bank service
charges 73 82 62 52 55
FDIC and state assessment 524 429 372 333 341
Insurance 244 235 228 218 211
Legal and accounting 382 316 280 276 308
Mortgage servicing
expense 59 74 87 -- --
Other professional fees 184 444 833 317 201
Operating supplies 234 245 244 289 241
Postage 189 188 180 165 163
Telephone 238 233 231 263 227
Other expense 1,698 1,406 1,194 997 1,095
------- ------- ------- ------- -------
Total other operating
expenses $ 6,099 $ 6,007 $ 5,917 $ 4,967 $ 4,770
======= ======= ======= ======= =======
Nine Months Ended
-----------------
(Dollars and shares in thousands, Sep. 30, Sep. 30,
except per share data) 2008 2007
-------------------------------------------------- -------- --------
PER SHARE DATA
--------------
(Adjusted for 8% Stock Dividend)
Diluted earnings per share $ 0.96 $ 0.80
Diluted cash earnings per share 1.00 0.84
Basic earnings per share 0.98 0.81
Dividends per share - common 0.157 0.093
Book value per common share 14.68 13.24
Tangible book value per common share 11.80 10.79
STOCK INFORMATION
-----------------
(Adjusted for 8% Stock Dividend)
Average common shares outstanding 19,808 18,609
Average diluted shares outstanding 20,309 18,923
End of period common shares outstanding 19,823 18,622
ANNUALIZED PERFORMANCE RATIOS
-----------------------------
Return on average assets 1.01% 0.91%
Cash return on average assets 1.08% 0.98%
Return on average equity 9.09% 8.48%
Cash return on average tangible equity 11.86% 11.09%
Efficiency ratio 57.95% 62.65%
Net interest margin - FTE 3.83% 3.49%
Fully taxable equivalent adjustment 2,236 1,867
RECONCILIATION OF CASH EARNINGS
-------------------------------
(Adjusted for 8% Stock Dividend)
GAAP net income $19,496 $15,050
Intangible amortization after-tax 843 801
------- -------
Cash earnings $20,339 $15,851
======= =======
GAAP diluted earnings per share $ 0.96 $ 0.80
Intangible amortization after-tax 0.04 0.04
------- -------
Diluted cash earnings per share $ 1.00 $ 0.84
======= =======
OTHER OPERATING EXPENSES
------------------------
Advertising $ 1,975 $ 1,855
Amortization of intangibles 1,387 1,317
Amortization of mortgage servicing rights 442 --
Electronic banking expense 2,315 1,803
Directors' fees 716 617
Due from bank service charges 217 162
FDIC and state assessment 1,325 926
Insurance 707 683
Legal and accounting 978 930
Mortgage servicing expense 220 --
Other professional fees 1,461 585
Operating supplies 723 694
Postage 557 498
Telephone 702 688
Other expense 4,298 3,207
------- -------
Total other operating expenses $18,023 $13,965
======= =======
Home BancShares, Inc.
Selected Financial Information
(Unaudited)
(Dollars in Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
thousands) 2008 2008 2008 2007 2007
------------- ---------- ---------- ---------- ---------- ----------
LOAN BALANCES
-------------
Real estate
Commercial
real estate
loans
Non-farm/
non-resi-
dential $ 798,447 $ 787,824 $ 765,881 $ 607,638 $ 590,083
Construc-
tion/land
develop-
ment 339,691 353,415 341,442 367,422 365,236
Agricultural 25,097 24,033 24,739 22,605 22,432
Residential
real estate
loans
Residential
1-4 family 376,722 365,577 343,475 259,975 251,057
Multifamily
residential 61,341 74,065 73,220 45,428 38,528
---------- ---------- ---------- ---------- ----------
Total real
estate 1,601,298 1,604,914 1,548,757 1,303,068 1,267,336
Consumer 49,600 54,060 55,251 46,275 45,212
Commercial and
industrial 255,933 238,870 224,756 219,062 206,744
Agricultural 38,431 33,794 17,559 20,429 25,506
Other 22,661 19,634 20,646 18,160 15,576
---------- ---------- ---------- ---------- ----------
Total loans
receivable
before
allowance
for loan
losses 1,967,923 1,951,272 1,866,969 1,606,994 1,560,374
Allowance for
loan losses 36,372 36,563 37,075 29,406 28,636
---------- ---------- ---------- ---------- ----------
Total loans
receivable,
net $1,931,551 $1,914,709 $1,829,894 $1,577,588 $1,531,738
========== ========== ========== ========== ==========
Loans to
deposits 102.87% 102.60% 100.66% 100.93% 97.61%
ALLOWANCE FOR
LOAN LOSSES
-------------
Balance,
beginning of
period $ 36,563 $ 37,075 $ 29,406 $ 28,636 $ 28,112
Loans charged
off 1,673 2,483 623 486 172
Recoveries
of loans
previously
charged off 43 1,267 101 61 149
---------- ---------- ---------- ---------- ----------
Net loans
charged off 1,630 1,216 522 425 23
Provision for
loan losses 1,439 704 4,809 1,195 547
Allowance for
loan losses
of acquired
institution -- -- 3,382 -- --
---------- ---------- ---------- ---------- ----------
Balance, end
of period $ 36,372 $ 36,563 $ 37,075 $ 29,406 $ 28,636
========== ========== ========== ========== ==========
Net charge-offs
to average
loans 0.33% 0.26% 0.11% 0.11% 0.01%
Allowance for
loan losses
to total loans 1.85% 1.87% 1.99% 1.83% 1.84%
NON-PERFORMING
ASSETS
--------------
Non-performing
loans
Non-accrual
loans $ 15,571 $ 11,772 $ 12,033 $ 2,952 $ 2,572
Loans past
due 90 days
or more 490 446 -- 301 150
---------- ---------- ---------- ---------- ----------
Total non-
performing
loans 16,061 12,218 12,033 3,253 2,722
---------- ---------- ---------- ---------- ----------
Other non-
performing
assets
Foreclosed
assets held
for sale 9,392 5,284 5,097 5,083 4,915
Non-accrual
investments 3,860 3,860 -- -- --
Other non-
performing
assets 13 59 27 15 --
---------- ---------- ---------- ---------- ----------
Total
other non-
performing
assets 13,265 9,203 5,124 5,098 4,915
---------- ---------- ---------- ---------- ----------
Total non-
performing
assets $ 29,326 $ 21,421 $ 17,157 $ 8,351 $ 7,637
========== ========== ========== ========== ==========
Allowance for
loan losses
to non-
performing
loans 226.46% 299.26% 308.11% 903.97% 1052.02%
Non-performing
loans to
total loans 0.82% 0.63% 0.64% 0.20% 0.17%
Non-performing
assets to
total assets 1.11% 0.82% 0.67% 0.36% 0.34%
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
------------------------------------------------------
September 30, 2008 June 30, 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 $ 6,882 $ 35 2.02% $ 5,093 $ 37 2.92%
Federal
funds sold 5,196 24 1.84% 19,138 99 2.08%
Investment
securities -
taxable 266,400 2,982 4.45% 276,903 2,996 4.35%
Investment
securities -
non-taxable
- FTE 113,222 1,925 6.76% 111,082 1,894 6.86%
Loans
receivable -
FTE 1,964,267 31,890 6.46% 1,915,404 32,266 6.78%
---------- ------- ---------- -------
Total
interest-
earning
assets 2,355,967 36,856 6.22% 2,327,620 37,292 6.44%
------- -------
Non-earning
assets 247,510 241,757
---------- ----------
Total
assets $2,603,477 $2,569,377
========== ==========
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
--------------
Liabilities
Interest-
bearing
liabilities
Savings and
interest-
bearing
transaction
accounts $ 690,564 $2,651 1.53% $ 698,084 $ 2,766 1.59%
Time
deposits 940,558 8,101 3.43% 924,671 8,853 3.85%
---------- ------- ---------- -------
Total
interest-
bearing
deposits 1,631,122 10,752 2.62% 1,622,755 11,619 2.88%
Federal funds
purchased 16,044 79 1.96% 3,396 20 2.37%
Securities
sold under
agreement to
repurchase 111,829 394 1.40% 108,589 367 1.36%
FHLB borrowed
funds 254,230 2,239 3.50% 242,809 2,059 3.41%
Subordinated
debentures 47,611 769 6.43% 47,633 734 6.20%
---------- ------- ---------- -------
Total
interest-
bearing
liabili-
ties 2,060,836 14,233 2.75% 2,025,182 14,799 2.94%
------- -------
Non-interest
bearing
liabilities
Non-interest
bearing
deposits 242,155 242,148
Other
liabilities 10,961 14,493
---------- ----------
Total
liabili-
ties 2,313,952 2,281,823
Shareholders'
equity 289,525 287,554
---------- ----------
Total
liabilities
and share-
holders'
equity $2,603,477 $2,569,377
========== ==========
Net interest
spread 3.47% 3.50%
Net interest
income and
margin - FTE $22,623 3.82% $22,493 3.89%
======= =======
Home BancShares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Nine Months Ended
------------------------------------------------------
September 30, 2008 September 30, 2007
-------------------------- --------------------------
(Dollars in Average Income/ Yield/ Average Income/ Yield/
thousands) Balance Expense Rate Balance Expense Rate
-------------- ---------- ------- ------ ---------- ------- ------
ASSETS
------
Earning assets
Interest-
bearing
balances
due from
banks $ 5,795 $ 127 2.93% $ 3,336 $ 132 5.29%
Federal
funds sold 15,640 289 2.47% 7,973 311 5.22%
Investment
securities -
taxable 289,059 9,740 4.50% 382,985 12,992 4.54%
Investment
securities -
non-taxable
- FTE 111,206 5,645 6.78% 94,227 4,781 6.78%
Loans
receivable -
FTE 1,903,891 97,459 6.84% 1,501,983 89,360 7.95%
---------- ------- ---------- -------
Total
interest-
earning
assets 2,325,591 113,260 6.51% 1,990,504 107,576 7.23%
------- -------
Non-earning
assets 248,976 227,419
---------- ----------
Total
assets $2,574,567 $2,217,923
========== ==========
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
-------------
Liabilities
Interest-
bearing
liabilities
Savings and
interest-
bearing
transaction
accounts $ 679,667 $ 8,822 1.73% $ 598,070 $13,357 2.99%
Time
deposits 927,573 27,071 3.90% 805,125 29,283 4.86%
---------- ------- ---------- -------
Total
interest-
bearing
deposits 1,607,240 35,893 2.98% 1,403,195 42,640 4.06%
Federal funds
purchased 8,700 168 2.58% 16,071 646 5.37%
Securities
sold under
agreement to
repurchase 112,612 1,349 1.60% 120,451 3,772 4.19%
FHLB borrowed
funds 257,786 6,873 3.56% 168,046 6,270 4.99%
Subordinated
debentures 47,634 2,314 6.49% 44,631 2,254 6.75%
---------- ------- ---------- -------
Total
interest-
bearing
liabili-
ties 2,033,972 46,597 3.06% 1,752,394 55,582 4.24%
------- -------
Non-interest
bearing
liabilities
Non-interest
bearing
deposits 240,449 215,716
Other
liabilities 13,527 12,422
---------- ----------
Total
liabili-
ties 2,287,948 1,980,532
Shareholders'
equity 286,619 237,391
---------- ----------
Total
liabilities
and share-
holders'
equity $2,574,567 $2,217,923
========== ==========
Net interest
spread 3.45% 2.99%
Net interest
income and
margin - FTE $66,663 3.83% $51,994 3.49%
======= =======
Contact: Home BancShares, Inc.
Brian S. Davis, Director of Financial Reporting
(501) 328-4770
Source: Home BancShares, Inc.
|  | ||||||||||||||||||||||
