EXHIBIT 99.1
Home BancShares, Inc. Announces First Quarter 2010 Earnings
CONWAY, Ark., April 20, 2010 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced first quarter earnings of $15.1 million, or $0.56 diluted earnings per common share, compared to $6.2 million, or $0.28 diluted earnings per common share for the same quarter in 2009.
Near the end of the first quarter of 2010, Centennial Bank acquired the banking operations of Old Southern Bank, headquartered in Orlando, Florida and Key West Bank, headquartered in Key West, Florida through a loss sharing agreement with the Federal Deposit Insurance Corporation ("FDIC"). All acquired assets and liabilities were recorded at their estimated fair market values as of the date of acquisition, and identifiable intangible assets were recorded at their estimated fair value. The estimated fair value of assets acquired exceeded the estimated fair value of liabilities assumed, resulting in a bargain purchase gain of $9.7 million and $3.3 million for Old Southern Bank and Key West Bank, respectively. These estimated fair market values are considered preliminary and are subject to change for up to one year after the acquisitions date as additional information relative to closing date fair values becomes available. Also, the tax treatment of FDIC assisted acquisitions is complex and subj ect to interpretations that may result in future adjustments of deferred taxes as of the acquisition dates. The Company anticipates the final determination of the fair values of these assets and liabilities will be completed in the second quarter of 2010.
In addition to the combined $13.0 million gain on the acquisitions, the Company incurred $1.1 million of acquisition expenses for the transactions during the first quarter of 2010. The combined financial impact of these items to the Company on an after-tax basis is a profit of $7.2 million or $0.28 diluted earnings per common share. If adjusted for these non core items, the announced profit for the first quarter of 2010 would reflect core net income of $7.9 million or $0.28 diluted earnings per share.
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 for the first quarter of 2010 was $0.57, compared to $0.30 for the same period in 2009.
"We are proud of the financial results and the acquisitions completed during the first quarter of 2010," said John Allison, Chairman. "Orlando and Key West are both great destinations and provide many opportunities for our Company. Old Southern Bank is a strong opportunistic acquisition which allows us to expand our footprint into central Florida. Key West Bank is a great in-market acquisition which allows us to enhance our existing presence and leverage our present infrastructure in Key West. Additionally, theses acquisitions are accretable to tangible book value for the company through the generation of additional capital."
"Over the last few quarters we have been positioning ourselves to acquire assisted transactions through the FDIC," said Randy Sims, Chief Executive Officer. "It was incredible to see how well our team performed in assuming these new banks and welcoming them into the Centennial Bank family. Without a doubt, we are prepared and are looking forward to our next opportunity."
Operating Highlights
Net interest income for the first quarter of 2010 was a quarterly record for the Company, increasing 14.2% to $24.9 million compared to $21.8 million for the first quarter of 2009. Net interest margin, on a fully taxable equivalent basis, was 4.26% in the quarter just ended compared to 3.93% in the first quarter of 2009, an increase of 33 basis points. The Company's ability to improve pricing on our deposits and hold the decline of interest rates on earning assets to a minimum allowed the Company to improve net interest margin.
The Company reported $20.3 million of non-interest income for the first quarter of 2010, an increase of 167.5% compared to $7.6 million for the first quarter of 2009. The most significant components of the first quarter non-interest income were $13.0 million from gain on acquisitions, $3.1 million from service charges on deposits accounts, $1.6 million from other service charges and fees, $428,000 increase in cash value of life insurance and $412,000 from mortgage lending income.
Non-interest expense for the first quarter of 2010 was $18.6 million compared to $19.3 million for the first quarter of 2009. Excluding the $1.1 million and $742,000 of merger and acquisition expenses for the first quarter of 2010 and 2009, respectively, non-interest expense for the first quarter of 2010 improved by $1.0 million or 5.5% when compared to the first quarter of 2009. Our core efficiency ratio improved 8.2 points to 51.2% for the first quarter of 2010 from the 59.4% reported in the first quarter of 2009. This improvement is associated with the on-going implementation of the efficiency study and the recently completed charter consolidation.
Financial Condition
Total non-covered loans were $1.96 billion at March 31, 2010 compared to $1.95 billion at December 31, 2009. Total deposits were $2.22 billion at March 31, 2010 compared to $1.84 billion at December 31, 2009. Total assets were $3.08 billion at March 31, 2010 compared to $2.68 billion at December 31, 2009.
Non-performing non-covered loans were $37.8 million as of March 31, 2010, of which $28.1 million were located in Florida. Non-performing non-covered loans as a percent of total non-covered loans were 1.93% as of March 31, 2010 compared to 2.05% as of December 31, 2009. Non-performing non-covered assets were $55.8 million as of March 31, 2010, of which $40.3 million were located in Florida. Non-performing non-covered assets as a percent of total non-covered assets were 2.03% as of March 31, 2010 compared to the 2.12% reported for December 31, 2009.
The Company's allowance for loan losses was $42.8 million at March 31, 2010, or 2.19% of total non-covered loans, compared to $43.0 million, or 2.20% of total non-covered loans, at December 31, 2009. As of March 31, 2010, the Company's allowance for loan losses equaled 113% of its total non-performing non-covered loans compared to 108% as of December 31, 2009.
Stockholders' equity was $479.1 million at March 31, 2010 compared to $465.0 million at December 31, 2009, an increase of $14.1 million. Book value per common share was $16.71 at March 31, 2010 compared to $16.18 at December 31, 2009.
New Branches
During 2010, Centennial Bank entered into two loss sharing agreements with the FDIC. Through these two transactions, the company added a total of eight branch locations in Florida. These branch locations include three in Orlando, one in Winter Park, two in Longwood, one in Clermont and one in Key West. Presently, the Company is evaluating additional opportunities but has no firm commitments for any additional de novo branch locations.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 ET) on Thursday, April 22, 2010. 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: 439004, which will be available until April 30, 2010 at 8:00 a.m. CT (9:00 ET). 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 are included in its Form 10-K, filed with the Securities and Exchange Commission in March 2010.
Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Our wholly-owned subsidiary Centennial Bank provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has locations in central Arkansas, north central Arkansas, southern Arkansas, the Florida Keys, central Florida and southwestern Florida. 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) | |||||
Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | |
(In thousands) | 2010 | 2009 | 2009 | 2009 | 2009 |
ASSETS | |||||
Cash and due from banks | $ 36,237 | $ 39,970 | $ 39,036 | $ 41,531 | $ 41,396 |
Interest-bearing deposits with other banks | 156,772 | 133,520 | 84,921 | 4,553 | 9,025 |
Cash and cash equivalents | 193,009 | 173,490 | 123,957 | 46,084 | 50,421 |
Federal funds sold | 11,207 | 11,760 | 660 | 31,805 | 15,510 |
Investment securities - available for sale | 362,710 | 322,115 | 315,269 | 309,989 | 334,916 |
Loans receivable not covered by loss share | 1,959,666 | 1,950,285 | 1,971,039 | 1,972,704 | 1,966,572 |
Loans receivable covered by FDIC loss share | 223,519 | -- | -- | -- | -- |
Allowance for loan losses | (42,845) | (42,968) | (41,210) | (41,804) | (40,822) |
Loans receivable, net | 2,140,340 | 1,907,317 | 1,929,829 | 1,930,900 | 1,925,750 |
Bank premises and equipment, net | 69,997 | 70,810 | 70,991 | 71,914 | 72,815 |
Foreclosed assets held for sale not covered by loss share | 17,610 | 16,484 | 19,111 | 17,606 | 15,397 |
Foreclosed assets held for sale covered by FDIC loss share | 8,672 | -- | -- | -- | -- |
FDIC indemnification asset | 91,888 | -- | -- | -- | -- |
Cash value of life insurance | 51,019 | 52,176 | 51,742 | 51,249 | 50,676 |
Investments in unconsolidated affiliates | 1,424 | 1,424 | 1,424 | 1,424 | 1,424 |
Accrued interest receivable | 14,854 | 13,137 | 12,815 | 12,840 | 12,850 |
Deferred tax asset, net | 9,607 | 14,777 | 13,423 | 14,669 | 16,659 |
Goodwill | 53,039 | 53,039 | 53,039 | 53,039 | 53,138 |
Core deposit and other intangibles | 7,341 | 4,698 | 5,160 | 5,622 | 6,084 |
Mortgage servicing rights | 872 | 1,090 | 1,308 | 1,526 | 1,744 |
Other assets | 45,745 | 42,548 | 33,008 | 31,259 | 28,767 |
Total assets | $ 3,079,334 | $ 2,684,865 | $ 2,631,736 | $ 2,579,926 | $ 2,586,151 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Liabilities | |||||
Deposits: | |||||
Demand and non-interest-bearing | $ 354,663 | $ 302,228 | $ 295,755 | $ 294,339 | $ 297,146 |
Savings and interest-bearing transaction accounts | 863,988 | 714,744 | 660,533 | 661,387 | 664,964 |
Time deposits | 1,002,437 | 818,451 | 823,997 | 876,339 | 874,337 |
Total deposits | 2,221,088 | 1,835,423 | 1,780,285 | 1,832,065 | 1,836,447 |
Federal funds purchased | -- | -- | -- | -- | -- |
Securities sold under agreements to repurchase | 55,403 | 62,000 | 63,264 | 65,232 | 74,478 |
FHLB borrowed funds | 254,548 | 264,360 | 282,550 | 277,640 | 277,827 |
Accrued interest payable and other liabilities | 21,774 | 10,625 | 11,594 | 14,105 | 11,034 |
Subordinated debentures | 47,462 | 47,484 | 47,507 | 47,530 | 47,552 |
Total liabilities | 2,600,275 | 2,219,892 | 2,185,200 | 2,236,572 | 2,247,338 |
Stockholders' equity | |||||
Preferred stock | 49,320 | 49,275 | 49,230 | 49,185 | 49,139 |
Common stock | 257 | 257 | 249 | 199 | 199 |
Capital surplus | 363,870 | 363,519 | 349,429 | 255,009 | 254,501 |
Retained earnings | 64,628 | 51,746 | 46,074 | 40,704 | 37,126 |
Accumulated other comprehensive gain (loss) | 984 | 176 | 1,554 | (1,743) | (2,152) |
Total stockholders' equity | 479,059 | 464,973 | 446,536 | 343,354 | 338,813 |
Total liabilities and stockholders' equity | $ 3,079,334 | $ 2,684,865 | $ 2,631,736 | $ 2,579,926 | $ 2,586,151 |
RATIOS | |||||
Total loans to total deposits | 98.29% | 106.26% | 110.71% | 107.68% | 107.09% |
Common equity to assets | 14.0% | 15.5% | 15.1% | 11.4% | 11.2% |
Tangible common equity to tangible assets | 12.2% | 13.6% | 13.2% | 9.3% | 9.1% |
Home BancShares, Inc. | |||||||
Consolidated Statements of Income | |||||||
(Unaudited) | |||||||
Quarter Ended | Year Ended | ||||||
Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Mar. 31, | Mar. 31, | |
(In thousands) | 2010 | 2009 | 2009 | 2009 | 2009 | 2010 | 2009 |
Interest income | |||||||
Loans | $ 29,866 | $ 29,625 | $ 30,056 | $ 29,389 | $ 29,138 | $ 29,866 | $ 29,138 |
Investment securities | |||||||
Taxable | 1,627 | 1,646 | 1,768 | 2,252 | 2,653 | 1,627 | 2,653 |
Tax-exempt | 1,479 | 1,491 | 1,463 | 1,343 | 1,298 | 1,479 | 1,298 |
Deposits - other banks | 85 | 89 | 7 | 8 | 12 | 85 | 12 |
Federal funds sold | 5 | 3 | 1 | 4 | 7 | 5 | 7 |
Total interest income | 33,062 | 32,854 | 33,295 | 32,996 | 33,108 | 33,062 | 33,108 |
Interest expense | |||||||
Interest on deposits | 5,295 | 5,704 | 6,489 | 7,131 | 8,118 | 5,295 | 8,118 |
Federal funds purchased | -- | -- | 2 | 2 | 2 | -- | 2 |
FHLB borrowed funds | 2,177 | 2,338 | 2,379 | 2,359 | 2,390 | 2,177 | 2,390 |
Securities sold under agreements to repurchase | 94 | 116 | 126 | 124 | 111 | 94 | 111 |
Subordinated debentures | 597 | 594 | 623 | 659 | 676 | 597 | 676 |
Total interest expense | 8,163 | 8,752 | 9,619 | 10,275 | 11,297 | 8,163 | 11,297 |
Net interest income | 24,899 | 24,102 | 23,676 | 22,721 | 21,811 | 24,899 | 21,811 |
Provision for loan losses | 3,100 | 3,850 | 3,550 | 2,750 | 1,000 | 3,100 | 1,000 |
Net interest income after | |||||||
provision for loan losses | 21,799 | 20,252 | 20,126 | 19,971 | 20,811 | 21,799 | 20,811 |
Non-interest income | |||||||
Service charges on deposit accounts | 3,141 | 3,759 | 3,785 | 3,633 | 3,374 | 3,141 | 3,374 |
Other service charges and fees | 1,638 | 1,527 | 1,705 | 1,841 | 1,784 | 1,638 | 1,784 |
Mortgage lending income | 412 | 555 | 488 | 815 | 880 | 412 | 880 |
Mortgage servicing income | 160 | 164 | 171 | 191 | 200 | 160 | 200 |
Insurance commissions | 347 | 253 | 173 | 198 | 257 | 347 | 257 |
Income from title services | 107 | 134 | 150 | 151 | 140 | 107 | 140 |
Increase in cash value of life insurance | 428 | 435 | 495 | 574 | 477 | 428 | 477 |
Dividends from FHLB, FRB & bankers' bank | 126 | 120 | 114 | 99 | 107 | 126 | 107 |
Gain on acquisitions | 12,976 | -- | -- | -- | -- | 12,976 | -- |
Gain on sale of SBA loans | -- | 51 | -- | -- | -- | -- | -- |
Gain (loss) on sale of premises & equip, net | 207 | 4 | (21) | (19) | 7 | 207 | 7 |
Gain (loss) on OREO, net | 159 | 97 | 4 | (28) | (117) | 159 | (117) |
Gain (loss) on securities, net | -- | 4 | -- | (3) | -- | -- | -- |
Other income | 586 | 448 | 500 | 507 | 476 | 586 | 476 |
Total non-interest income | 20,287 | 7,551 | 7,564 | 7,959 | 7,585 | 20,287 | 7,585 |
Non-interest expense | |||||||
Salaries and employee benefits | 8,534 | 7,672 | 7,987 | 8,432 | 8,944 | 8,534 | 8,944 |
Occupancy and equipment | 2,799 | 2,549 | 2,706 | 2,667 | 2,677 | 2,799 | 2,677 |
Data processing expense | 862 | 834 | 790 | 813 | 777 | 862 | 777 |
Other operating expenses | 6,360 | 5,260 | 5,556 | 8,355 | 6,864 | 6,360 | 6,864 |
Total non-interest expense | 18,555 | 16,315 | 17,039 | 20,267 | 19,262 | 18,555 | 19,262 |
Income before income taxes | 23,531 | 11,488 | 10,651 | 7,663 | 9,134 | 23,531 | 9,134 |
Income tax expense | 8,436 | 3,607 | 3,412 | 2,222 | 2,889 | 8,436 | 2,889 |
Net income | 15,095 | 7,881 | 7,239 | 5,441 | 6,245 | 15,095 | 6,245 |
Preferred stock dividends & accretion of discount on preferred stock | 670 | 670 | 670 | 670 | 566 | 670 | 566 |
Net income available to common shareholders | $ 14,425 | $ 7,211 | $ 6,569 | $ 4,771 | $ 5,679 | $ 14,425 | $ 5,679 |
Home BancShares, Inc. | |||||||
Selected Financial Information | |||||||
(Unaudited) | |||||||
Quarter Ended | Year Ended | ||||||
(Dollars and shares in thousands, | Mar. 31, | Dec. 31, | Sept. 30, | Jun. 30, | Mar. 31, | Mar. 31, | Mar. 31, |
except per share data) | 2010 | 2009 | 2009 | 2009 | 2009 | 2010 | 2009 |
PER SHARE DATA | |||||||
Diluted earnings per common share | $ 0.56 | $ 0.28 | $ 0.32 | $ 0.24 | $ 0.28 | $ 0.56 | $ 0.28 |
Diluted cash earnings per common share | 0.57 | 0.29 | 0.33 | 0.25 | 0.30 | 0.57 | 0.30 |
Basic earnings per common share | 0.56 | 0.28 | 0.32 | 0.24 | 0.29 | 0.56 | 0.29 |
Dividends per share - common | 0.060 | 0.060 | 0.060 | 0.060 | 0.060 | 0.060 | 0.060 |
Book value per common share | 16.71 | 16.18 | 15.94 | 14.78 | 14.58 | 16.71 | 14.58 |
Tangible book value per common share | 14.36 | 13.93 | 13.60 | 11.83 | 11.60 | 14.36 | 11.60 |
STOCK INFORMATION | |||||||
Average common shares outstanding | 25,707 | 25,633 | 20,480 | 19,888 | 19,863 | 25,707 | 19,863 |
Average diluted shares outstanding | 25,936 | 25,848 | 20,703 | 20,122 | 20,119 | 25,936 | 20,119 |
End of period common shares outstanding | 25,716 | 25,690 | 24,931 | 19,903 | 19,865 | 25,716 | 19,865 |
ANNUALIZED PERFORMANCE RATIOS | |||||||
Return on average assets | 2.22% | 1.17% | 1.12% | 0.84% | 0.97% | 2.22% | 0.97% |
Cash return on average assets | 2.31% | 1.24% | 1.19% | 0.91% | 1.04% | 2.31% | 1.04% |
Return on average common equity | 13.98% | 6.95% | 8.46% | 6.53% | 8.02% | 13.98% | 8.02% |
Cash return on average tangible common equity | 16.57% | 8.40% | 10.89% | 8.66% | 10.50% | 16.57% | 10.50% |
Efficiency ratio | 39.13% | 48.39% | 51.38% | 62.67% | 62.12% | 39.13% | 62.12% |
Core efficiency ratio | 51.21% | 49.30% | 51.38% | 56.11% | 59.44% | 51.21% | 59.44% |
Net interest margin - FTE | 4.26% | 4.14% | 4.26% | 4.08% | 3.93% | 4.26% | 3.93% |
Fully taxable equivalent adjustment | 1,050 | 1,106 | 1,023 | 923 | 865 | 1,050 | 865 |
RECONCILIATION OF CASH EARNINGS (LOSS) | |||||||
GAAP net income available to common shareholders | $ 14,425 | $ 7,211 | $ 6,569 | $ 4,771 | $ 5,679 | $ 14,425 | $ 5,679 |
Intangible amortization after-tax | 291 | 281 | 282 | 281 | 281 | 291 | 281 |
Cash earnings | $ 14,716 | $ 7,492 | $ 6,851 | $ 5,052 | $ 5,960 | $ 14,716 | $ 5,960 |
GAAP diluted earnings per share | $ 0.56 | $ 0.28 | $ 0.32 | $ 0.24 | $ 0.28 | $ 0.56 | $ 0.28 |
Intangible amortization after-tax | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.01 | 0.02 |
Diluted cash earnings per share | $ 0.57 | $ 0.29 | $ 0.33 | $ 0.25 | $ 0.30 | $ 0.57 | $ 0.30 |
OTHER OPERATING EXPENSES | |||||||
Advertising | $ 366 | $ 591 | $ 567 | $ 856 | $ 600 | $ 366 | $ 600 |
Merger and acquisition expenses | 1,059 | (129) | 2 | 896 | 742 | 1,059 | 742 |
Amortization of intangibles | 479 | 462 | 462 | 462 | 463 | 479 | 463 |
Amortization of mortgage servicing rights | 218 | 218 | 218 | 218 | 147 | 218 | 147 |
Electronic banking expense | 477 | 465 | 686 | 889 | 863 | 477 | 863 |
Directors' fees | 145 | 226 | 239 | 237 | 284 | 145 | 284 |
Due from bank service charges | 90 | 103 | 104 | 107 | 100 | 90 | 100 |
FDIC and state assessment | 898 | 862 | 913 | 1,949 | 965 | 898 | 965 |
Insurance | 300 | 274 | 278 | 271 | 297 | 300 | 297 |
Legal and accounting | 388 | 38 | 74 | 368 | 435 | 388 | 435 |
Mortgage servicing expense | 84 | 78 | 75 | 78 | 72 | 84 | 72 |
Other professional fees | 313 | 300 | 278 | 250 | 259 | 313 | 259 |
Operating supplies | 186 | 215 | 217 | 192 | 213 | 186 | 213 |
Postage | 150 | 153 | 163 | 173 | 176 | 150 | 176 |
Telephone | 138 | 145 | 164 | 181 | 178 | 138 | 178 |
Other expense | 1,069 | 1,259 | 1,116 | 1,228 | 1,070 | 1,069 | 1,070 |
Total other operating expenses | $ 6,360 | $ 5,260 | $ 5,556 | $ 8,355 | $ 6,864 | $ 6,360 | $ 6,864 |
Home BancShares, Inc. | |||||
Selected Financial Information | |||||
(Unaudited) | |||||
Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | |
(Dollars in thousands) | 2010 | 2009 | 2009 | 2009 | 2009 |
LOANS NOT COVERED BY LOSS SHARE | |||||
Real estate | |||||
Commercial real estate loans | |||||
Non-farm/non-residential | $ 822,252 | $ 808,983 | $ 812,195 | $ 794,675 | $ 814,353 |
Construction/land development | 363,738 | 368,723 | 353,645 | 347,028 | 336,941 |
Agricultural | 30,943 | 33,699 | 36,675 | 38,379 | 16,943 |
Residential real estate loans | |||||
Residential 1-4 family | 381,451 | 382,504 | 394,626 | 407,642 | 395,688 |
Multifamily residential | 63,602 | 62,609 | 63,025 | 72,673 | 61,751 |
Total real estate | 1,661,986 | 1,656,518 | 1,660,166 | 1,660,397 | 1,625,676 |
Consumer | 33,206 | 39,084 | 40,288 | 41,814 | 43,354 |
Commercial and industrial | 231,867 | 219,847 | 220,511 | 224,043 | 250,172 |
Agricultural | 12,122 | 10,280 | 21,126 | 21,566 | 23,706 |
Other | 20,485 | 24,556 | 28,948 | 24,884 | 23,664 |
Loans receivable not covered by loss share | 1,959,666 | 1,950,285 | 1,971,039 | 1,972,704 | 1,966,572 |
ALLOWANCE FOR LOAN LOSSES | |||||
Balance, beginning of period | $ 42,968 | $ 41,210 | $ 41,804 | $ 40,822 | $ 40,385 |
Loans charged off | 3,720 | 2,639 | 4,491 | 2,324 | 1,015 |
Recoveries of loans previously charged off | 497 | 547 | 347 | 556 | 452 |
Net loans charged off | 3,223 | 2,092 | 4,144 | 1,768 | 563 |
Provision for loan losses | 3,100 | 3,850 | 3,550 | 2,750 | 1,000 |
Balance, end of period | $ 42,845 | $ 42,968 | $ 41,210 | $ 41,804 | $ 40,822 |
Net charge-offs to average non-covered loans | 0.67% | 0.42% | 0.83% | 0.36% | 0.12% |
Allowance for loan losses to total non-covered loans | 2.19% | 2.20% | 2.09% | 2.12% | 2.08% |
NON-PERFORMING ASSETS | |||||
NOT COVERED BY LOSS SHARE | |||||
Non-performing non-covered loans | |||||
Non-accrual non-covered loans | $ 33,907 | $ 37,056 | $ 32,585 | $ 29,977 | $ 24,024 |
Non-covered loans past due 90 days or more | 3,915 | 2,889 | 2,089 | 5,291 | 284 |
Total non-performing non-covered loans | 37,822 | 39,945 | 34,674 | 35,268 | 24,308 |
Other non-performing non-covered assets | |||||
Non-covered foreclosed assets held for sale, net | 17,610 | 16,484 | 19,111 | 17,606 | 15,397 |
Other non-performing non-covered assets | 394 | 371 | 128 | 2 | 2 |
Total other non-performing non-covered assets | 18,004 | 16,855 | 19,239 | 17,608 | 15,399 |
Total non-performing non-covered assets | $ 55,826 | $ 56,800 | $ 53,913 | $ 52,876 | $ 39,707 |
Allowance for loan losses to non-performing non-covered loans | 113.28% | 107.57% | 118.85% | 118.53% | 167.94% |
Non-performing non-covered loans to total non-covered loans | 1.93% | 2.05% | 1.76% | 1.79% | 1.24% |
Non-performing non-covered assets to total non-covered assets | 2.03% | 2.12% | 2.05% | 2.05% | 1.54% |
Home BancShares, Inc. | ||||||
Consolidated Net Interest Margin | ||||||
(Unaudited) | ||||||
Three Months Ended | ||||||
March 31, 2010 | December 31, 2009 | |||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate |
ASSETS | ||||||
Earning assets | ||||||
Interest-bearing balances due from banks | $ 137,747 | $ 85 | 0.25% | $ 129,925 | $ 89 | 0.27% |
Federal funds sold | 7,361 | 5 | 0.28% | 6,772 | 3 | 0.18% |
Investment securities - taxable | 194,329 | 1,627 | 3.40% | 178,558 | 1,646 | 3.66% |
Investment securities - non-taxable - FTE | 138,128 | 2,387 | 7.01% | 138,133 | 2,408 | 6.92% |
Loans receivable - FTE | 1,993,626 | 30,008 | 6.10% | 1,960,098 | 29,814 | 6.03% |
Total interest-earning assets | 2,471,191 | 34,112 | 5.60% | 2,413,486 | 33,960 | 5.58% |
Non-earning assets | 282,956 | 254,177 | ||||
Total assets | $ 2,754,147 | $ 2,667,663 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Liabilities | ||||||
Interest-bearing liabilities | ||||||
Savings and interest-bearing transaction accounts | $ 756,412 | $ 1,084 | 0.58% | $ 696,594 | $ 1,064 | 0.61% |
Time deposits | 862,437 | 4,211 | 1.98% | 815,868 | 4,640 | 2.26% |
Total interest-bearing deposits | 1,618,849 | 5,295 | 1.33% | 1,512,462 | 5,704 | 1.50% |
Federal funds purchased | 44 | -- | 0.00% | -- | -- | 0.00% |
Securities sold under agreement to repurchase | 53,795 | 94 | 0.71% | 62,755 | 116 | 0.73% |
FHLB borrowed funds | 247,514 | 2,177 | 3.57% | 273,654 | 2,338 | 3.39% |
Subordinated debentures | 47,476 | 597 | 5.10% | 47,497 | 594 | 4.96% |
Total interest-bearing liabilities | 1,967,678 | 8,163 | 1.68% | 1,896,368 | 8,752 | 1.83% |
Non-interest bearing liabilities | ||||||
Non-interest bearing deposits | 306,512 | 297,494 | ||||
Other liabilities | 12,300 | 12,688 | ||||
Total liabilities | 2,286,490 | 2,206,550 | ||||
Shareholders' equity | 467,657 | 461,113 | ||||
Total liabilities and shareholders' equity | $ 2,754,147 | $ 2,667,663 | ||||
Net interest spread | 3.92% | 3.75% | ||||
Net interest income and margin - FTE | $ 25,949 | 4.26% | $ 25,208 | 4.14% |
Home BancShares, Inc. | ||||||
Consolidated Net Interest Margin | ||||||
(Unaudited) | ||||||
Three Months Ended | ||||||
March 31, 2010 | March 31, 2009 | |||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate |
ASSETS | ||||||
Earning assets | ||||||
Interest-bearing balances due from banks | $ 137,747 | $ 85 | 0.25% | $ 8,604 | $ 12 | 0.57% |
Federal funds sold | 7,361 | 5 | 0.28% | 13,846 | 7 | 0.21% |
Investment securities - taxable | 194,329 | 1,627 | 3.40% | 230,762 | 2,653 | 4.66% |
Investment securities - non-taxable - FTE | 138,128 | 2,387 | 7.01% | 117,082 | 2,064 | 7.15% |
Loans receivable - FTE | 1,993,626 | 30,008 | 6.10% | 1,966,934 | 29,237 | 6.03% |
Total interest-earning assets | 2,471,191 | 34,112 | 5.60% | 2,337,228 | 33,973 | 5.89% |
Non-earning assets | 282,956 | 261,009 | ||||
Total assets | $ 2,754,147 | $ 2,598,237 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Liabilities | ||||||
Interest-bearing liabilities | ||||||
Savings and interest-bearing transaction accounts | $ 756,412 | $ 1,084 | 0.58% | $ 667,281 | $ 1,285 | 0.78% |
Time deposits | 862,437 | 4,211 | 1.98% | 913,504 | 6,833 | 3.03% |
Total interest-bearing deposits | 1,618,849 | 5,295 | 1.33% | 1,580,785 | 8,118 | 2.08% |
Federal funds purchased | 44 | -- | 0.00% | 3,790 | 2 | 0.21% |
Securities sold under agreement to repurchase | 53,795 | 94 | 0.71% | 84,730 | 111 | 0.53% |
FHLB borrowed funds | 247,514 | 2,177 | 3.57% | 280,876 | 2,390 | 3.45% |
Subordinated debentures | 47,476 | 597 | 5.10% | 47,566 | 676 | 5.76% |
Total interest-bearing liabilities | 1,967,678 | 8,163 | 1.68% | 1,997,747 | 11,297 | 2.29% |
Non-interest bearing liabilities | ||||||
Non-interest bearing deposits | 306,512 | 264,595 | ||||
Other liabilities | 12,300 | 7,786 | ||||
Total liabilities | 2,286,490 | 2,270,128 | ||||
Shareholders' equity | 467,657 | 328,109 | ||||
Total liabilities and shareholders' equity | $ 2,754,147 | $ 2,598,237 | ||||
Net interest spread | 3.92% | 3.60% | ||||
Net interest income and margin - FTE | $ 25,949 | 4.26% | $ 22,676 | 3.93% |
CONTACT: Home BancShares, Inc. Brian S. Davis, Chief Accounting Officer & Investor Relations Officer (501) 328-4770