EXHIBIT 99.1
Home BancShares, Inc. Announces 39.2 Percent Increase in Earnings
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% ======= =======
CONTACT: Home BancShares, Inc. Brian S. Davis, Director of Financial Reporting (501) 328-4770