CONWAY, Ark., Oct. 18, 2007 (PRIME NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB) today announced a 21.9% increase in the third quarter 2007 earnings over the earnings for the same period last year. The record third quarter earnings were $5.2 million, or $0.30 diluted earnings per share for the quarter ended September 30, 2007, compared to earnings of $4.3 million, or $0.25 diluted earnings per share for the same period in 2006.
For the nine months ended September 30, 2007, net income totaled $15.1 million, a 31.6% increase over net income of $11.4 million for the first nine months of 2006. Diluted earnings per share for the first nine months of 2007 were $0.86, compared to $0.74 for the comparable period in 2006, an increase of $0.12 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 $0.31 and $0.26 for the third quarter of 2007 and 2006, respectively. Cash diluted earnings per share for the first nine months of 2007 were $0.90, compared to $0.79 for the comparable period in 2006, an increase of $0.11 per share.
"The third quarter for our Company couldn't have gone any better," said John W. Allison, Chairman and Chief Executive Officer. "The hard work of our partners, associates and boards of directors is proving to be successful. Their dedication has resulted in record earnings, strong loan growth, improving net interest margin and solid asset quality".
Operating Highlights
Net interest income for the third quarter of 2007 increased 5.4% to $17.3 million compared to $16.4 million for the third quarter of 2006. Net interest margin, on a fully taxable equivalent basis, was 3.55% in the quarter just ended compared to 3.57% in the third quarter of 2006, a modest decrease of two basis points. The Company's third quarter 2007 net interest margin of 3.55% reflected an increase of four basis points from the second quarter's 3.51%. During 2006, competitive pressures and a slightly inverted yield curve put pressure on the Company's net interest margin. The easing of competitive pressures during 2007 combined with the Company's strong loan growth which was partially funded by maturities in the investment portfolio have allowed the Company to improve net interest margin on a linked quarter basis.
Net interest income for the nine months ended September 30, 2007 increased 7.6% to $50.1 million compared to $46.6 million for the nine months ended September 30, 2006. The Company's net interest margin, on a fully taxable equivalent basis, for the nine months ended September 30, 2007 was 3.49%, a decrease of five basis points from 3.54% for the comparable period in 2006.
Non-interest income for the third quarter of 2007 was $6.3 million compared with $4.7 million for the third quarter of 2006, a 34.4% increase. Non-interest income for the nine months ended September 30, 2007 was $19.1 million compared to $13.7 million for the nine months ended September 30, 2006, a 39.4% 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.
Non-interest expense for the third quarter of 2007 was $15.6 million compared with $14.2 million for the third quarter of 2006, an increase of 9.6%. Non-interest expense for the nine months ended September 30, 2007 was $45.9 million compared to $42.0 million for the nine months ended September 30, 2006, a 9.2% increase. The increase is the result of the de novo expansion particularly in the Florida market combined with the normal increased cost of doing business.
Financial Condition
Total loans were $1.56 billion at September 30, 2007 compared to $1.39 billion at September 30, 2006, an increase of 12.5% or $173 million. Total deposits were $1.60 billion at September 30, 2007 compared to $1.56 billion at September 30, 2006, an increase of $41 million. Total assets were $2.27 billion at September 30, 2007, a $154 million increase from $2.11 billion at September 30, 2006.
Nonperforming loans as a percent of total loans was 0.17% as of September 30, 2007 compared to 0.45% as of September 30, 2006. Nonperforming assets as a percent of total assets were 0.34% as of September 30, 2007 compared to 0.33% as of September 30, 2006.
The Company's allowance for loan losses was $28.6 million at September 30, 2007, or 1.84% of total loans, compared to $26.0 million, or 1.87% of total loans, at September 30, 2006. As of September 30, 2007, the Company's allowance for loan losses equaled 1052% of its total nonperforming loans compared to 417% as of September 30, 2006.
Stockholders' equity was $246.6 million at September 30, 2007 compared to $225.6 million at September 30, 2006, an increase of 9.3%. Book value per common share was $14.30 at September 30, 2007 compared to $13.12 at September 30, 2006, a 9.0% increase.
Branch Expansion
During the first nine months of 2007, the Company opened six de novo branch locations. These branch locations are located in the Arkansas communities of Quitman, Searcy (2 branches), and Bryant plus Key West and Key Largo, Florida. Presently, the Company is evaluating additional opportunities and has plans for two additional de novo branch locations in Morrilton and Cabot, Arkansas.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CST (2:00 EST) on Thursday, October 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: 255751, which will be available until October 26, 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. As previously announced, the Corporation has entered into a definitive agreement to purchase Centennial Bancshares, Inc., Little Rock, Arkansas. This transaction is expected to close on January 1, 2008. Upon completion of this acquisition, the Corporation will own six wholly owned banks, four in the central Arkansas market. 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) (In thousands) ------------- Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, 2007 2007 2007 2006 2006 ---------- ---------- ---------- ---------- ---------- ASSETS Cash and due from banks $ 46,471 $ 51,110 $ 57,998 $ 53,004 $ 45,216 Interest- bearing deposits with other banks 2,573 2,431 2,962 6,696 831 ---------- ---------- ---------- ---------- ---------- Cash and cash equi- valents 49,044 53,541 60,960 59,700 46,047 Federal funds sold 11,145 10,182 10,685 9,003 31,081 Investment securities - available for sale 447,826 458,782 476,534 531,891 509,203 Loans re- ceivable 1,560,374 1,525,013 1,475,376 1,416,295 1,387,279 Allowance for loan losses (28,636) (28,112) (26,934) (26,111) (25,952) ---------- ---------- ---------- ---------- ---------- Loans re- ceivable, net 1,531,738 1,496,901 1,448,442 1,390,184 1,361,327 Bank premises and equipment, net 66,770 64,656 60,751 57,339 54,407 Foreclosed assets held for sale 4,915 182 327 435 732 Cash value of life insurance 47,468 46,862 42,746 42,149 7,008 Investments in uncon- solidated affiliates 14,982 14,836 12,336 12,449 12,609 Accrued interest receivable 15,186 14,847 14,331 13,736 13,894 Deferred tax asset, net 9,499 11,023 8,455 8,361 9,043 Goodwill 37,527 37,527 37,527 37,527 37,527 Core de- posit and other in- tangibles 8,141 8,580 9,019 9,458 9,897 Other assets 23,431 22,002 21,463 18,416 20,723 ---------- ---------- ---------- ---------- ---------- Total assets $2,267,672 $2,239,921 $2,203,576 $2,190,648 $2,113,498 ========== ========== ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits: Demand and non- interest- bearing $ 217,666 $ 224,675 $ 228,716 $ 215,142 $ 218,846 Savings and interest- bearing trans- action accounts 569,797 612,853 606,593 582,425 532,579 Time deposits 811,108 805,485 792,951 809,627 806,108 ---------- ---------- ---------- ---------- ---------- Total de- posits 1,598,571 1,643,013 1,628,260 1,607,194 1,557,533 Federal funds purchased 8,690 -- 25,450 25,270 -- Securities sold under agreements to repur- chase 131,007 127,392 128,335 118,825 116,339 FHLB and other borrowed funds 226,028 175,455 127,842 151,768 157,117 Accrued interest payable and other lia- bilities 12,204 11,061 12,192 11,509 12,233 Subordi- nated de- bentures 44,595 44,618 44,640 44,663 44,686 ---------- ---------- ---------- ---------- ---------- Total lia- bilities 2,021,095 2,001,539 1,966,719 1,959,229 1,887,908 ---------- ---------- ---------- ---------- ---------- Stockholders' equity Common stock 172 172 172 172 172 Capital surplus 195,429 195,257 194,930 194,595 194,406 Retained earnings 54,871 50,333 45,875 41,544 37,496 Accumulated other comprehen- sive loss (3,895) (7,380) (4,120) (4,892) (6,484) ---------- ---------- ---------- ---------- ---------- Total stock- holders' equity 246,577 238,382 236,857 231,419 225,590 ---------- ---------- ---------- ---------- ---------- Total lia- bilities and stock- holders' equity $2,267,672 $2,239,921 $2,203,576 $2,190,648 $2,113,498 ========== ========== ========== ========== ========== Home BancShares, Inc. Consolidated Statements of Income (Unaudited) (In thousands) -------------- Quarter Ended ----------------------------------------------- Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, 2007 2007 2007 2006 2006 ------- ------- ------- ------- ------- Interest income Loans $31,116 $29,776 $28,288 $27,559 $26,748 Investment securities Taxable 4,133 4,273 4,586 4,705 4,738 Tax-exempt 1,043 1,025 1,026 938 883 Deposits - other banks 53 30 49 36 38 Federal funds sold 36 40 235 447 51 ------- ------- ------- ------- ------- Total interest income 36,381 35,144 34,184 33,685 32,458 ------- ------- ------- ------- ------- Interest expense Interest on deposits 14,416 14,091 14,133 13,530 12,010 Federal funds purchased 194 247 205 53 178 FHLB and other borrowed funds 2,426 2,033 1,811 1,840 1,825 Securities sold under agreements to repurchase 1,267 1,281 1,224 1,298 1,258 Subordinated debentures 758 747 749 746 751 ------- ------- ------- ------- ------- Total interest expense 19,061 18,399 18,122 17,467 16,022 ------- ------- ------- ------- ------- Net interest income 17,320 16,745 16,062 16,218 16,436 Provision for loan losses 547 680 820 584 649 ------- ------- ------- ------- ------- Net interest income after provision for loan losses 16,773 16,065 15,242 15,634 15,787 ------- ------- ------- ------- ------- Non-interest income Service charges on deposit accounts 2,816 2,669 2,588 2,778 2,354 Other service charges and fees 1,342 1,334 1,500 906 541 Trust fees 27 30 24 184 166 Data processing fees 192 209 218 176 215 Mortgage banking income 451 478 348 451 435 Insurance commissions 153 171 289 140 153 Income from title services 181 238 156 205 233 Increase in cash value of life insurance 607 617 598 143 55 Dividends from FHLB, FRB & bankers' bank 218 207 227 219 180 Equity in earnings of unconsolidated affiliate 47 (56) (114) (166) (65) Gain on sale of SBA loans -- 170 -- 38 -- Gain (loss) on sale of premises & equip, net (31) 167 14 6 129 Gain on sale of securities, net -- -- -- -- -- Other income 309 349 357 349 302 ------- ------- ------- ------- ------- Total non-interest income 6,312 6,583 6,205 5,429 4,698 ------- ------- ------- ------- ------- Non-interest expense Salaries and employee benefits 7,739 7,757 7,440 7,190 7,376 Occupancy and equipment 2,446 2,342 2,210 2,361 2,223 Data processing expense 644 670 644 618 651 Other operating expenses 4,770 4,748 4,447 4,310 3,987 ------- ------- ------- ------- ------- Total non-interest expense 15,599 15,517 14,741 14,479 14,237 ------- ------- ------- ------- ------- Income before income taxes 7,486 7,131 6,706 6,584 6,248 Income tax expense 2,258 2,070 1,945 2,106 1,960 ------- ------- ------- ------- ------- Net income $ 5,228 $ 5,061 $ 4,761 $ 4,478 $ 4,288 ======= ======= ======= ======= ======= Nine Months Ended -------------------- Sep. 30, Sep. 30, 2007 2006 -------- -------- Interest income Loans $ 89,180 $ 72,593 Investment securities Taxable 12,992 14,174 Tax-exempt 3,094 2,815 Deposits - other banks 132 103 Federal funds sold 311 393 -------- -------- Total interest income 105,709 90,078 -------- -------- Interest expense Interest on deposits 42,640 32,683 Federal funds purchased 646 636 FHLB and other borrowed funds 6,270 4,787 Securities sold under agreements to repurchase 3,772 3,122 Subordinated debentures 2,254 2,245 -------- -------- Total interest expense 55,582 43,473 -------- -------- Net interest income 50,127 46,605 Provision for loan losses 2,047 1,723 -------- -------- Net interest income after provision for loan losses 48,080 44,882 -------- -------- Non-interest income Service charges on deposit accounts 8,073 6,669 Other service charges and fees 4,176 1,736 Trust fees 81 487 Data processing fees 619 623 Mortgage banking income 1,277 1,285 Insurance commissions 613 642 Income from title services 575 752 Increase in cash value of life insurance 1,822 161 Dividends from FHLB, FRB & bankers' bank 652 440 Equity in earnings of unconsolidated affiliate (123) (213) Gain on sale of SBA loans 170 34 Gain (loss) on sale of premises & equip, net 150 157 Gain on sale of securities, net -- 1 Other income 1,015 924 -------- -------- Total non-interest income 19,100 13,698 -------- -------- Non-interest expense Salaries and employee benefits 22,936 22,123 Occupancy and equipment 6,998 6,351 Data processing expense 1,958 1,888 Other operating expenses 13,965 11,637 -------- -------- Total non-interest expense 45,857 41,999 -------- -------- Income before income taxes 21,323 16,581 Income tax expense 6,273 5,141 -------- -------- Net income $ 15,050 $ 11,440 ======== ======== Home BancShares, Inc. Selected Financial Information (Unaudited) (Dollars and shares in thousands, except per share data) -------------------------------- Quarter Ended ----------------------------------------------- Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, 2007 2007 2007 2006 2006 ------- ------- ------- ------- ------- PER SHARE DATA -------------- Diluted earnings per share $ 0.30 $ 0.29 $ 0.27 $ 0.26 $ 0.25 Diluted cash earnings per share 0.31 0.30 0.29 0.28 0.26 Basic earnings per share 0.30 0.29 0.28 0.25 0.26 Dividends per share - common 0.040 0.035 0.025 0.025 0.025 Book value per common share 14.30 13.83 13.75 13.45 13.12 Tangible book value per common share 11.65 11.15 11.05 10.72 10.36 STOCK INFORMATION ----------------- Average common shares outstanding 17,239 17,235 17,219 17,202 16,361 Average diluted shares outstanding 17,537 17,544 17,501 17,438 17,291 End of period common shares outstanding 17,243 17,238 17,222 17,206 17,196 Dividends paid on preferred stock -- -- -- -- 49 ANNUALIZED PERFORMANCE RATIOS ---------------------- Return on average assets 0.92% 0.92% 0.88% 0.83% 0.83% Cash return on average assets 0.99% 0.99% 0.95% 0.90% 0.90% Return on average equity 8.60% 8.52% 8.30% 7.82% 7.81% Cash return on average tangible equity 11.16% 11.14% 10.96% 10.46% 10.61% Efficiency ratio 62.47% 62.95% 62.52% 63.10% 63.72% Net interest margin - FTE 3.55% 3.51% 3.42% 3.42% 3.57% Fully taxable equivalent adjustment 634 623 610 553 521 RECONCILIATION OF CASH EARNINGS ---------------- GAAP net income $ 5,228 $ 5,061 $ 4,761 $ 4,478 $ 4,288 Intangible amortiza- tion after-tax 267 267 267 267 267 ------- ------- ------- ------- ------- Cash earnings $ 5,495 $ 5,328 $ 5,028 $ 4,745 $ 4,555 ======= ======= ======= ======= ======= GAAP diluted earnings per share $ 0.30 $ 0.29 $ 0.27 $ 0.26 $ 0.25 Intangible amortiza- tion after-tax 0.01 0.01 0.02 0.02 0.01 ------- ------- ------- ------- ------- Diluted cash earnings per share $ 0.31 $ 0.30 $ 0.29 $ 0.28 $ 0.26 ======= ======= ======= ======= ======= OTHER OPERATING EXPENSES --------------- Advertising $ 646 $ 580 $ 629 $ 645 $ 568 Amortization of intangibles 439 439 439 439 439 Electronic banking expense 618 655 530 359 152 Directors' fees 225 218 174 165 203 Due from bank service charges 55 51 56 86 91 FDIC and state assessment 266 231 260 133 142 Insurance 211 228 244 289 285 Legal and accounting 308 303 319 278 191 Other professional fees 201 214 170 284 204 Operating supplies 241 227 226 256 202 Postage 163 171 164 163 171 Telephone 227 233 228 220 251 Other expense 1,170 1,198 1,008 993 1,088 ------- ------- ------- ------- ------- Total other operating expenses $ 4,770 $ 4,748 $ 4,447 $ 4,310 $ 3,987 ======= ======= ======= ======= ======= Nine Months Ended ------------------ Sep. 30, Sep. 30, 2007 2006 ------- ------- PER SHARE DATA -------------- Diluted earnings per share $ 0.86 $ 0.74 Diluted cash earnings per share 0.90 0.79 Basic earnings per share 0.87 0.82 Dividends per share - common 0.100 0.065 Book value per common share 14.30 13.12 Tangible book value per common share 11.65 10.36 STOCK INFORMATION ----------------- Average common shares outstanding 17,231 13,585 Average diluted shares outstanding 17,521 15,415 End of period common shares outstanding 17,243 17,196 Dividends paid on preferred stock -- 359 ANNUALIZED PERFORMANCE RATIOS ----------------------------- Return on average assets 0.91% 0.77% Cash return on average assets 0.98% 0.84% Return on average equity 8.48% 8.25% Cash return on average tangible equity 11.09% 11.90% Efficiency ratio 62.65% 65.66% Net interest margin - FTE 3.49% 3.54% Fully taxable equivalent adjustment 1,867 1,676 RECONCILIATION OF CASH EARNINGS ------------------------------- GAAP net income $15,050 $11,440 Intangible amortization after-tax 801 792 ------- ------- Cash earnings $15,851 $12,232 ======= ======= GAAP diluted earnings per share $ 0.86 $ 0.74 Intangible amortization after-tax 0.04 0.05 ------- ------- Diluted cash earnings per share $ 0.90 $ 0.79 ======= ======= OTHER OPERATING EXPENSES ------------------------ Advertising $ 1,855 $ 1,738 Amortization of intangibles 1,317 1,303 Electronic banking expense 1,803 430 Directors' fees 617 609 Due from bank service charges 162 245 FDIC and state assessment 757 394 Insurance 683 741 Legal and accounting 930 747 Other professional fees 585 487 Operating supplies 694 684 Postage 498 500 Telephone 688 755 Other expense 3,376 3,004 ------- ------- Total other operating expenses $13,965 $11,637 ======= ======= Home BancShares, Inc. Selected Financial Information (Unaudited) (Dollars in thousands) Sep. 30, Jun. 30, Mar. 31, ---------------------- 2007 2007 2007 ---------- ---------- ---------- LOAN BALANCES ------------- Real estate Commercial real estate loans Non-farm/non-residential $ 590,083 $ 555,466 $ 519,680 Construction/land development 365,236 368,632 369,022 Agricultural 22,432 32,235 33,245 Residential real estate loans Residential 1-4 family 251,057 240,003 231,788 Multifamily residential 38,528 37,559 39,329 ---------- ---------- ---------- Total real estate 1,267,336 1,233,895 1,193,064 Consumer 45,212 43,964 42,345 Commercial and industrial 206,744 205,760 205,531 Agricultural 25,506 24,969 16,986 Other 15,576 16,425 17,450 ---------- ---------- ---------- Total loans receivable before allowance for loan losses 1,560,374 1,525,013 1,475,376 Allowance for loan losses 28,636 28,112 26,934 ---------- ---------- ---------- Total loans receivable, net $1,531,738 $1,496,901 $1,448,442 ========== ========== ========== Loans to deposits 97.61% 92.82% 90.61% ALLOWANCE FOR LOAN LOSSES ------------------------- Balance, beginning of period $ 28,112 $ 26,934 $ 26,111 Loans charged off 172 68 100 Recoveries of loans previously charged off 149 566 103 ---------- ---------- ---------- Net (recoveries) loans charged off 23 (498) (3) Provision for loan losses 547 680 820 ---------- ---------- ---------- Balance, end of period $ 28,636 $ 28,112 $ 26,934 ========== ========== ========== Net (recoveries) charge-offs to average loans 0.01% -0.13% 0.00% Allowance for loan losses to total loans 1.84% 1.84% 1.83% NON-PERFORMING ASSETS --------------------- Non-performing loans Non-accrual loans $ 2,572 $ 18,964 $ 5,059 Loans past due 90 days or more 150 105 1,116 ---------- ---------- ---------- Total non-performing loans 2,722 19,069 6,175 ---------- ---------- ---------- Other non-performing assets Foreclosed assets held for sale 4,915 182 327 Other non-performing assets -- 1 1 ---------- ---------- ---------- Total other non-performing assets 4,915 183 328 ---------- ---------- ---------- Total non-performing assets $ 7,637 $ 19,252 $ 6,503 ========== ========== ========== Allowance for loan losses to non-performing loans 1052.02% 147.42% 436.18% Non-performing loans to total loans 0.17% 1.25% 0.42% Non-performing assets to total assets 0.34% 0.86% 0.30% Dec. 31, Sep. 30, 2006 2006 ---------- ---------- LOAN BALANCES ------------- Real estate Commercial real estate loans Non-farm/non-residential $ 465,306 $ 454,227 Construction/land development 393,410 394,036 Agricultural 11,659 11,598 Residential real estate loans Residential 1-4 family 229,588 228,347 Multifamily residential 37,440 34,527 ---------- ---------- Total real estate 1,137,403 1,122,735 Consumer 45,056 43,716 Commercial and industrial 206,559 181,673 Agricultural 13,520 26,439 Other 13,757 12,716 ---------- ---------- Total loans receivable before allowance for loan losses 1,416,295 1,387,279 Allowance for loan losses 26,111 25,952 ---------- ---------- Total loans receivable, net $1,390,184 $1,361,327 ========== ========== Loans to deposits 88.12% 89.07% ALLOWANCE FOR LOAN LOSSES ------------------------- Balance, beginning of period $ 25,952 $ 25,245 Loans charged off 529 210 Recoveries of loans previously charged off 104 268 ---------- ---------- Net (recoveries) loans charged off 425 (58) Provision for loan losses 584 649 ---------- ---------- Balance, end of period $ 26,111 $ 25,952 ========== ========== Net (recoveries) charge-offs to average loans 0.12% -0.02% Allowance for loan losses to total loans 1.84% 1.87% NON-PERFORMING ASSETS --------------------- Non-performing loans Non-accrual loans $ 3,905 $ 5,347 Loans past due 90 days or more 641 879 ---------- ---------- Total non-performing loans 4,546 6,226 ---------- ---------- Other non-performing assets Foreclosed assets held for sale 435 732 Other non-performing assets 13 15 ---------- ---------- Total other non-performing assets 448 747 ---------- ---------- Total non-performing assets $ 4,994 $ 6,973 ========== ========== Allowance for loan losses to non-performing loans 574.37% 416.83% Non-performing loans to total loans 0.32% 0.45% Non-performing assets to total assets 0.23% 0.33% Home BancShares, Inc. Consolidated Net Interest Margin (Unaudited) (Dollars in thousands) ---------------------- Three Months Ended ----------------------------------------------------- September 30, 2007 June 30, 2007 ------------------------- ------------------------- Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate ---------- ------- ---- ---------- ------- ---- ASSETS ------ Earning assets Interest-bearing balances due from banks $ 3,894 $ 53 5.40% $ 2,319 $ 30 5.19% Federal funds sold 2,995 36 4.77% 3,058 40 5.25% Investment securities - taxable 366,530 4,133 4.47% 375,609 4,273 4.56% Investment securities - non-taxable - FTE 87,953 1,614 7.28% 96,943 1,586 6.56% Loans receivable - FTE 1,547,858 31,179 7.99% 1,506,237 29,838 7.95% ---------- ------- ---------- ------- Total interest- earning assets 2,009,230 37,015 7.31% 1,984,166 35,767 7.23% ------- ------- Non-earning assets 234,003 228,174 ---------- ---------- Total assets $2,243,233 $2,212,340 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY --------------- Liabilities Interest-bearing liabilities Interest-bearing transaction and savings deposits $ 586,710 $ 4,375 2.96% $ 615,459 $ 4,648 3.03% Time deposits 813,676 10,041 4.90% 780,836 9,443 4.85% ---------- ------- ---------- ------- Total interest- bearing deposits 1,400,386 14,416 4.08% 1,396,295 14,091 4.05% Federal funds purchased 14,446 194 5.33% 18,379 247 5.39% Securities sold under agreement to repurchase 125,877 1,267 3.99% 119,610 1,281 4.30% FHLB and other borrowed funds 191,887 2,426 5.02% 162,880 2,033 5.01% Subordinated debentures 44,609 758 6.74% 44,631 747 6.71% ---------- ------- ---------- ------- Total interest- bearing liabilities 1,777,205 19,061 4.26% 1,741,795 18,399 4.24% ------- ------- Non-interest bearing liabilities Non-interest- bearing deposits 212,298 220,411 Other liabilities 12,577 11,977 ---------- ---------- Total liabilities 2,002,080 1,974,183 Shareholders' equity 241,153 238,157 ---------- ---------- Total liabilities and share- holders' equity $2,243,233 $2,212,340 ========== ========== Net interest spread 3.05% 2.99% Net interest income and margin - FTE $17,954 3.55% $17,368 3.51% ======= ======= Home BancShares, Inc. Consolidated Net Interest Margin (Unaudited) (Dollars in thousands) ---------------------- Nine Months Ended ----------------------------------------------------- September 30, 2007 September 30, 2006 ------------------------- ------------------------- Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate ASSETS ---------- ------- ---- ---------- ------- ---- ------ Earning assets Interest-bearing balances due from banks $ 3,336 $ 132 5.29% $ 2,916 $ 103 4.72% Federal funds sold 7,973 311 5.22% 11,062 393 4.75% Investment securities - taxable 382,985 12,992 4.54% 426,549 14,174 4.44% Investment securities - non-taxable - FTE 94,227 4,781 6.78% 92,179 4,367 6.33% Loans receivable - FTE 1,501,983 89,360 7.95% 1,289,594 72,717 7.54% ---------- ------- ---------- ------- Total interest- earning assets 1,990,504 107,576 7.23% 1,822,300 91,754 6.73% ------- ------- Non-earning assets 227,419 173,821 ---------- ---------- Total assets $2,217,923 $1,996,121 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY --------------- Liabilities Interest-bearing liabilities Interest- bearing trans- action and savings deposits $ 598,070 $13,357 2.99% $ 523,843 $ 9,323 2.38% Time deposits 805,125 29,283 4.86% 747,782 23,360 4.18% ---------- ------- ---------- ------- Total interest- bearing deposits 1,403,195 42,640 4.06% 1,271,625 32,683 3.44% Federal funds purchased 16,071 646 5.37% 17,221 636 4.94% Securities sold under agreement to repurchase 120,451 3,772 4.19% 107,798 3,122 3.87% FHLB and other borrowed funds 168,046 6,270 4.99% 141,994 4,787 4.51% Subordinated debentures 44,631 2,254 6.75% 44,722 2,245 6.71% ---------- ------- ---------- ------- Total interest- bearing liabilities 1,752,394 55,582 4.24% 1,583,360 43,473 3.67% ------- ------- Non-interest bearing liabilities Non-interest- bearing deposits 215,716 216,366 Other liabilities 12,422 10,903 ---------- ---------- Total liabilities 1,980,532 1,810,629 Shareholders' equity 237,391 185,492 ---------- ---------- Total liabil- ities and shareholders' equity $2,217,923 $1,996,121 ========== ========== Net interest spread 2.99% 3.06% Net interest income and margin - FTE $51,994 3.49% $48,281 3.54% ======= =======