EXHIBIT 99.1
Home BancShares, Inc. Announces Record Third Quarter Net Income
CONWAY, Ark., Oct. 15, 2009 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced record third quarter net income. Net income for the quarter ended September 30, 2009 was $7.2 million, a 10.3% increase over net income of $6.6 million for the third quarter of 2008. Diluted earnings per common share were $0.32 for both the third quarter of 2009 and 2008.
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 $0.33 and $0.34 for the third quarter of 2009 and 2008, respectively.
"This was a great quarter for our Company, especially considering the weak economy in our Florida market," said John Allison, Chairman. "There are a lot of positives for our Company; we have an improving efficiency ratio and net interest margin, healthy reserves and top of the line capital levels. Based upon the strong demand for our recent capital raise, the optimistic view we have in this company is also shared by others."
Operating Highlights
Net interest income for the third quarter of 2009 increased 8.3% to $23.7 million compared to $21.9 million for the third quarter of 2008. Net interest margin, on a fully taxable equivalent basis, was 4.26% in the quarter just ended compared to 3.82% in the third quarter of 2008, an increase of 44 basis points. The Company's third quarter 2009 net interest margin of 4.26% reflected an increase of 18 basis points from 4.08% in the second quarter of 2009. The Company's ability to improve pricing on our deposits and hold the decline of interest rates on loans to a minimum allowed the Company to improve net interest margin.
Non-interest income for the third quarter of 2009 was $7.6 million compared with $7.8 million of non-interest income for the third quarter of 2008, a decrease of $183,000 or 2.4%. The decrease in the third quarter of 2009 is primarily the result of a decline in mortgage origination volume, data processing fees and lower dividend yields.
Non-interest expense for the third quarter of 2009 was $17.1 million compared with $18.5 million for the third quarter of 2008. This marks a $1.4 million or 7.6% improvement when compared to the third quarter of 2008. Our core efficiency ratio improved 476 basis points to 51.44% for the third quarter of 2009 from the 56.20% reported in the second 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 loans were $1.97 billion at September 30, 2009 compared to $1.97 billion at September 30, 2008. Total deposits were $1.78 billion at September 30, 2009 compared to $1.91 billion at September 30, 2008. Total assets were $2.63 billion at September 30, 2009 compared to $2.65 billion at September 30, 2008.
Non-performing loans were $34.7 million as of September 30, 3009, of which $24.2 million were located in Florida. On a linked quarter basis, non-performing loans decreased approximately $600,000. Non-performing loans as a percent of total loans were 1.76% as of September 30, 2009 compared to 1.79% as of June 30, 2009. Non-performing assets were $53.9 million as of September 30, 2009, of which $36.7 million were located in Florida. Non-performing assets as a percent of total assets were 2.05% as of September 30, 2009 equal to the 2.05% reported for June 30, 2009. However, this is a 20 basis point improvement from the 2.25% we reported for August 31, 2009.
The Company's allowance for loan losses was $41.2 million at September 30, 2009, or 2.09% of total loans, compared to $36.4 million, or 1.85% of total loans, at September 30, 2008. As of September 30, 2009, the Company's allowance for loan losses equaled 119% of its total non-performing loans compared to 226% as of September 30, 2008.
Stockholders' equity was $446.5 million at September 30, 2009 compared to $291.0 million at September 30, 2008, an increase of $155.5 million. Book value per common share was $15.94 at September 30, 2009 compared to $14.68 at September 30, 2008.
New Branches
During 2009, the Company opened an Arkansas branch location in Heber Springs. 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, October 15, 2009. 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: 434043, which will be available until October 23, 2009. 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 2009.
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 and related financial services to businesses, real estate developers and investors, individuals and municipalities. Centennial Bank has locations in central Arkansas, north central Arkansas, southern Arkansas, the Florida Keys 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) (In thousands) Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, 2009 2009 2009 2008 2008 ---------- ---------- ---------- ---------- ---------- ASSETS Cash and due from banks $ 39,036 $ 41,531 $ 41,396 $ 46,765 $ 50,445 Interest- bearing deposits with other banks 84,921 4,553 9,025 7,403 10,290 ---------- ---------- ---------- ---------- ---------- Cash and cash equivalents 123,957 46,084 50,421 54,168 60,735 Federal funds sold 660 31,805 15,510 7,865 28,347 Investment securities - available for sale 315,269 309,989 334,916 355,244 381,564 Loans receivable 1,971,039 1,972,704 1,966,572 1,956,232 1,967,923 Allowance for loan losses (41,210) (41,804) (40,822) (40,385) (36,372) ---------- ---------- ---------- ---------- ---------- Loans receivable, net 1,929,829 1,930,900 1,925,750 1,915,847 1,931,551 Bank premises and equipment, net 70,991 71,914 72,815 73,610 70,500 Foreclosed assets held for sale 19,111 17,606 15,397 6,763 9,392 Cash value of life insurance 51,742 51,249 50,676 50,201 49,731 Investments in unconsolidated affiliates 1,424 1,424 1,424 1,424 1,424 Accrued interest receivable 12,815 12,840 12,850 13,115 13,804 Deferred tax asset, net 13,423 14,669 16,659 16,267 14,530 Goodwill 53,039 53,039 53,138 50,038 50,038 Core deposit and other intangibles 5,160 5,622 6,084 6,547 7,009 Mortgage servicing rights 1,308 1,526 1,744 1,891 2,039 Other assets 33,008 31,259 28,767 27,113 29,926 ---------- ---------- ---------- ---------- ---------- Total assets $2,631,736 $2,579,926 $2,586,151 $2,580,093 $2,650,590 ========== ========== ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits: Demand and non- interest- bearing $ 295,755 $ 294,339 $ 297,146 $ 249,349 $ 263,410 Savings and interest- bearing transaction accounts 660,533 661,387 664,964 656,758 680,217 Time deposits 823,997 876,339 874,337 941,801 969,444 ---------- ---------- ---------- ---------- ---------- Total deposits 1,780,285 1,832,065 1,836,447 1,847,908 1,913,071 Federal funds purchased -- -- -- -- -- Securities sold under agreements to repurchase 63,264 65,232 74,478 113,389 108,350 FHLB borrowed funds 282,550 277,640 277,827 282,975 278,182 Accrued interest payable and other liabilities 11,594 14,105 11,034 5,202 12,350 Subordinated debentures 47,507 47,530 47,552 47,575 47,598 ---------- ---------- ---------- ---------- ---------- Total liabilities 2,185,200 2,236,572 2,247,338 2,297,049 2,359,551 ---------- ---------- ---------- ---------- ---------- Stockholders' equity Preferred stock 49,230 49,185 49,139 -- -- Common stock 249 199 199 199 198 Capital surplus 349,429 255,009 254,501 253,581 252,836 Retained earnings 46,074 40,704 37,126 32,639 43,310 Accumulated other comprehensive gain (loss) 1,554 (1,743) (2,152) (3,375) (5,305) ---------- ---------- ---------- ---------- ---------- Total stockholders' equity 446,536 343,354 338,813 283,044 291,039 ---------- ---------- ---------- ---------- ---------- Total liabilities and stockholders' equity $2,631,736 $2,579,926 $2,586,151 $2,580,093 $2,650,590 ========== ========== ========== ========== ========== CAPITAL RATIOS Common equity to assets 15.1% 11.4% 11.2% 11.0% 11.0% Tangible common equity to tangible assets 13.2% 9.3% 9.1% 9.0% 9.0% Home BancShares, Inc. Consolidated Statements of Income (Loss) (Unaudited) (In thousands) Quarter Ended ------------------------------------------------ Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, 2009 2009 2009 2008 2008 -------- -------- -------- -------- -------- Interest income Loans $ 30,056 $ 29,389 $ 29,138 $ 30,527 $ 31,831 Investment securities Taxable 1,768 2,252 2,653 2,870 2,982 Tax-exempt 1,463 1,343 1,298 1,267 1,216 Deposits - other banks 7 8 12 6 35 Federal funds sold 1 4 7 24 24 -------- -------- -------- -------- -------- Total interest income 33,295 32,996 33,108 34,694 36,088 -------- -------- -------- -------- -------- Interest expense Interest on deposits 6,489 7,131 8,118 9,700 10,752 Federal funds purchased 2 2 2 14 79 FHLB borrowed funds 2,379 2,359 2,390 2,382 2,239 Securities sold under agreements to repurchase 126 124 111 173 394 Subordinated debentures 623 659 676 800 769 -------- -------- -------- -------- -------- Total interest expense 9,619 10,275 11,297 13,069 14,233 -------- -------- -------- -------- -------- Net interest income 23,676 22,721 21,811 21,625 21,855 Provision for loan losses 3,550 2,750 1,000 20,064 1,439 -------- -------- -------- -------- -------- Net interest income after provision for loan losses 20,126 19,971 20,811 1,561 20,416 -------- -------- -------- -------- -------- Non-interest income Service charges on deposit accounts 3,785 3,633 3,374 3,650 3,557 Other service charges and fees 1,705 1,841 1,784 1,513 1,698 Mortgage lending income 488 815 880 629 695 Mortgage servicing income 171 191 200 199 206 Insurance commissions 173 198 257 155 164 Income from title services 150 151 140 145 141 Increase in cash value of life insurance 495 574 477 471 544 Dividends from FHLB, FRB & bankers' bank 114 99 107 126 194 Equity in earnings of unconsolidated affiliate -- -- -- -- -- Gain on sale of equity investment -- -- -- -- -- Gain on sale of SBA loans -- -- -- -- 26 Gain (loss) on sale of premises & equip, net (21) (19) 7 105 -- Gain (loss) on OREO, net 4 (28) (117) (2,422) (28) Gain (loss) on securities, net -- (3) -- (3,860) -- Other income 537 538 506 1,021 587 -------- -------- -------- -------- -------- Total non-interest income 7,601 7,990 7,615 1,732 7,784 -------- -------- -------- -------- -------- Non-interest expense Salaries and employee benefits 7,987 8,432 8,944 8,618 8,739 Occupancy and equipment 2,706 2,667 2,677 2,800 2,825 Data processing expense 827 844 807 942 815 Other operating expenses 5,556 8,355 6,864 7,699 6,099 -------- -------- -------- -------- -------- Total non-interest expense 17,076 20,298 19,292 20,059 18,478 -------- -------- -------- -------- -------- Income (loss) before income taxes 10,651 7,663 9,134 (16,766) 9,722 Income tax expense (benefit) 3,412 2,222 2,889 (7,386) 3,158 -------- -------- -------- -------- -------- Net income (loss) 7,239 5,441 6,245 (9,380) 6,564 Preferred stock dividends & accretion of discount on preferred stock 670 670 566 -- -- -------- -------- -------- -------- -------- Net income (loss) available to common shareholders $ 6,569 $ 4,771 $ 5,679 $ (9,380) $ 6,564 ======== ======== ======== ======== ======== (In thousands) Nine Months Ended -------------------- Sep. 30, Sep. 30, 2009 2008 --------- --------- Interest income Loans $ 88,583 $ 97,285 Investment securities Taxable 6,673 9,740 Tax-exempt 4,104 3,583 Deposits - other banks 27 127 Federal funds sold 12 289 --------- --------- Total interest income 99,399 111,024 --------- --------- Interest expense Interest on deposits 21,738 35,893 Federal funds purchased 6 168 FHLB borrowed funds 7,128 6,873 Securities sold under agreements to repurchase 361 1,349 Subordinated debentures 1,958 2,314 --------- --------- Total interest expense 31,191 46,597 --------- --------- Net interest income 68,208 64,427 Provision for loan losses 7,300 6,952 --------- --------- Net interest income after provision for loan losses 60,908 57,475 --------- --------- Non-interest income Service charges on deposit accounts 10,792 10,006 Other service charges and fees 5,330 5,051 Mortgage lending income 2,183 2,142 Mortgage servicing income 562 654 Insurance commissions 628 620 Income from title services 441 498 Increase in cash value of life insurance 1,546 1,642 Dividends from FHLB, FRB & bankers' bank 320 702 Equity in earnings of unconsolidated affiliate -- 102 Gain on sale of equity investment -- 6,102 Gain on sale of SBA loans -- 127 Gain (loss) on sale of premises & equip, net (33) (2) Gain (loss) on OREO, net (141) (458) Gain (loss) on securities, net (3) (2,067) Other income 1,581 1,866 --------- --------- Total non-interest income 23,206 26,985 --------- --------- Non-interest expense Salaries and employee benefits 25,363 26,948 Occupancy and equipment 8,050 8,253 Data processing expense 2,478 2,434 Other operating expenses 20,775 18,023 --------- --------- Total non-interest expense 56,666 55,658 --------- --------- Income (loss) before income taxes 27,448 28,802 Income tax expense (benefit) 8,523 9,306 --------- --------- Net income (loss) 18,925 19,496 Preferred stock dividends & accretion of discount on preferred stock 1,906 -- --------- --------- Net income (loss) available to common shareholders $ 17,019 $ 19,496 ========= ========= 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, 2009 2009 2009 2008 2008 -------- -------- -------- -------- -------- PER SHARE DATA Diluted earnings (loss) per common share $ 0.32 $ 0.24 $ 0.28 $ (0.46) $ 0.32 Diluted cash earnings (loss) per common share 0.33 0.25 0.30 (0.45) 0.34 Basic earnings (loss) per common share 0.32 0.24 0.29 (0.47) 0.32 Dividends per share - common 0.060 0.060 0.060 0.065 0.060 Book value per common share 15.94 14.78 14.58 14.25 14.68 Tangible book value per common share 13.60 11.83 11.60 11.40 11.80 STOCK INFORMATION Average common shares outstanding 20,480 19,888 19,863 19,840 19,814 Average diluted shares outstanding 20,703 20,122 20,119 20,340 20,323 End of period common shares outstanding 24,931 19,903 19,865 19,860 19,823 ANNUALIZED PERFORMANCE RATIOS Return on average assets 1.12% 0.84% 0.97% -1.43% 1.00% Cash return on average assets 1.19% 0.91% 1.04% -1.41% 1.07% Return on average common equity 8.46% 6.53% 8.02% -12.80% 9.02% Cash return on average tangible common equity 10.89% 8.66% 10.50% -15.43% 11.72% Efficiency ratio 51.44% 62.70% 62.16% 80.96% 59.25% Core efficiency ratio 51.44% 56.20% 59.71% 59.33% 59.25% Net interest margin - FTE 4.26% 4.08% 3.93% 3.78% 3.82% Fully taxable equivalent adjustment 1,023 923 865 848 768 RECONCILIATION OF CASH EARNINGS (LOSS) GAAP net income (loss) available to common shareholders $ 6,569 $ 4,771 $ 5,679 $ (9,380) $ 6,564 Intangible amortization after-tax 282 281 281 281 281 -------- -------- -------- -------- -------- Cash earnings (loss) $ 6,851 $ 5,052 $ 5,960 $ (9,099) $ 6,845 ======== ======== ======== ======== ======== GAAP diluted earnings (loss) per share $ 0.32 $ 0.24 $ 0.28 $ (0.46) $ 0.32 Intangible amortization after-tax 0.01 0.01 0.02 0.01 0.02 -------- -------- -------- -------- -------- Diluted cash earnings (loss) per share $ 0.33 $ 0.25 $ 0.30 $ (0.45) $ 0.34 ======== ======== ======== ======== ======== OTHER OPERATING EXPENSES Advertising $ 567 $ 856 $ 600 $ 669 $ 670 Merger expenses 2 896 742 1,775 -- Amortization of intangibles 462 462 463 462 462 Amortization of mortgage servicing rights 218 218 147 147 148 Electronic banking expense 686 889 863 665 740 Directors' fees 239 237 284 275 254 Due from bank service charges 104 107 100 89 73 FDIC and state assessment 913 1,949 965 479 524 Insurance 278 271 297 241 244 Legal and accounting 74 368 435 406 382 Mortgage servicing expense 75 78 72 77 59 Other professional fees 278 250 259 165 184 Operating supplies 217 192 213 236 234 Postage 163 173 176 185 189 Telephone 164 181 178 199 238 Other expense 1,116 1,228 1,070 1,629 1,698 -------- -------- -------- -------- -------- Total other operating expenses $ 5,556 $ 8,355 $ 6,864 $ 7,699 $ 6,099 ======== ======== ======== ======== ======== (Dollars and shares in thousands, except per share data) Nine Months Ended -------------------- Sep. 30, Sep. 30, 2009 2008 --------- --------- PER SHARE DATA Diluted earnings (loss) per common share $ 0.84 $ 0.96 Diluted cash earnings (loss) per common share 0.88 1.00 Basic earnings (loss) per common share 0.85 0.98 Dividends per share - common 0.180 0.157 Book value per common share 15.94 14.68 Tangible book value per common share 13.60 11.80 STOCK INFORMATION Average common shares outstanding 20,079 19,808 Average diluted shares outstanding 20,319 20,309 End of period common shares outstanding 24,931 19,823 ANNUALIZED PERFORMANCE RATIOS Return on average assets 0.98% 1.01% Cash return on average assets 1.05% 1.08% Return on average common equity 7.69% 9.09% Cash return on average tangible common equity 10.04% 11.86% Efficiency ratio 58.67% 57.95% Core efficiency ratio 55.61% 59.30% Net interest margin - FTE 4.09% 3.83% Fully taxable equivalent adjustment 2,811 2,236 RECONCILIATION OF CASH EARNINGS (LOSS) GAAP net income (loss) available to common shareholders $ 17,019 $ 19,496 Intangible amortization after-tax 844 843 --------- --------- Cash earnings (loss) $ 17,863 $ 20,339 ========= ========= GAAP diluted earnings (loss) per share $ 0.84 $ 0.96 Intangible amortization after-tax 0.04 0.04 --------- --------- Diluted cash earnings (loss) per share $ 0.88 $ 1.00 ========= ========= OTHER OPERATING EXPENSES Advertising $ 2,023 $ 1,975 Merger expenses 1,640 -- Amortization of intangibles 1,387 1,387 Amortization of mortgage servicing rights 583 442 Electronic banking expense 2,438 2,315 Directors' fees 760 716 Due from bank service charges 311 217 FDIC and state assessment 3,827 1,325 Insurance 846 707 Legal and accounting 877 978 Mortgage servicing expense 225 220 Other professional fees 787 1,461 Operating supplies 622 723 Postage 512 557 Telephone 523 702 Other expense 3,414 4,298 --------- --------- Total other operating expenses $ 20,775 $ 18,023 ========= ========= Home BancShares, Inc. Selected Financial Information (Unaudited) (Dollars in thousands) Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, 2009 2009 2009 2008 2008 ---------- ---------- ---------- ---------- ---------- LOAN BALANCES Real estate Commercial real estate loans Non-farm/ non- residential $ 812,195 $ 794,675 $ 814,353 $ 816,603 $ 798,447 Construction/ land development 353,645 347,028 336,941 320,398 339,691 Agricultural 36,675 38,379 16,943 23,603 25,097 Residential real estate loans Residential 1-4 family 394,626 407,642 395,688 391,255 376,722 Multifamily residential 63,025 72,673 61,751 56,440 61,341 ---------- ---------- ---------- ---------- ---------- Total real estate 1,660,166 1,660,397 1,625,676 1,608,299 1,601,298 Consumer 40,288 41,814 43,354 46,615 49,600 Commercial and industrial 220,511 224,043 250,172 255,153 255,933 Agricultural 21,126 21,566 23,706 23,625 38,431 Other 28,948 24,884 23,664 22,540 22,661 ---------- ---------- ---------- ---------- ---------- Total loans receivable before allowance for loan losses 1,971,039 1,972,704 1,966,572 1,956,232 1,967,923 Allowance for loan losses 41,210 41,804 40,822 40,385 36,372 ---------- ---------- ---------- ---------- ---------- Total loans receivable, net $1,929,829 $1,930,900 $1,925,750 $1,915,847 $1,931,551 ========== ========== ========== ========== ========== Loans to deposits 110.71% 107.68% 107.09% 105.86% 102.87% ALLOWANCE FOR LOAN LOSSES Balance, beginning of period $ 41,804 $ 40,822 $ 40,385 $ 36,372 $ 36,563 Loans charged off 4,491 2,324 1,015 16,141 1,673 Recoveries of loans previously charged off 347 556 452 90 43 ---------- ---------- ---------- ---------- ---------- Net loans charged off 4,144 1,768 563 16,051 1,630 Provision for loan losses 3,550 2,750 1,000 20,064 1,439 ---------- ---------- ---------- ---------- ---------- Balance, end of period $ 41,210 $ 41,804 $ 40,822 $ 40,385 $ 36,372 ========== ========== ========== ========== ========== Net charge-offs to average loans 0.83% 0.36% 0.12% 3.23% 0.33% Allowance for loan losses to total loans 2.09% 2.12% 2.08% 2.06% 1.85% NON-PERFORMING ASSETS Non-performing loans Non-accrual loans $ 32,585 $ 29,977 $ 24,024 $ 28,524 $ 15,571 Loans past due 90 days or more 2,089 5,291 284 1,374 490 ---------- ---------- ---------- ---------- ---------- Total non- performing loans 34,674 35,268 24,308 29,898 16,061 ---------- ---------- ---------- ---------- ---------- Other non-performing assets Foreclosed assets held for sale 19,111 17,606 15,397 6,763 9,392 Non-accrual investments -- -- -- -- 3,860 Other non- performing assets 128 2 2 16 13 ---------- ---------- ---------- ---------- ---------- Total other non- performing assets 19,239 17,608 15,399 6,779 13,265 ---------- ---------- ---------- ---------- ---------- Total non- performing assets $ 53,913 $ 52,876 $ 39,707 $ 36,677 $ 29,326 ========== ========== ========== ========== ========== Allowance for loan losses to non- performing loans 118.85% 118.53% 167.94% 135.08% 226.46% Non-performing loans to total loans 1.76% 1.79% 1.24% 1.53% 0.82% Non-performing assets to total assets 2.05% 2.05% 1.54% 1.42% 1.11% Home BancShares, Inc. Consolidated Net Interest Margin (Unaudited) Three Months Ended ------------------------------------------------------ September 30, 2009 June 30, 2009 -------------------------- -------------------------- (Dollars in Average Income/ Yield/ Average Income/ Yield/ thousands) Balance Expense Rate Balance Expense Rate ----------- ---------- ------- ------ ---------- ------- ------ ASSETS ------ Earning assets Interest- bearing balances due from banks $ 5,860 $ 7 0.47%$ 5,854 $ 8 0.55% Federal funds sold 2,056 1 0.19% 11,513 4 0.14% Investment securities - taxable 173,940 1,768 4.03% 209,597 2,252 4.31% Investment securities - non-taxable - FTE 137,653 2,343 6.75% 120,364 2,146 7.15% Loans receivable - FTE 1,979,967 30,199 6.05% 1,979,837 29,509 5.98% ---------- ------- ---------- ------- Total interest- earning assets 2,299,476 34,318 5.92% 2,327,165 33,919 5.85% ------- ------- Non-earning assets 271,871 263,118 ---------- ---------- Total assets $2,571,347 $2,590,283 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY --------------- Liabilities Interest- bearing liabilities Savings and interest- bearing transaction account $ 663,387 $ 1,138 0.68% $ 674,055 $ 1,176 0.70% Time deposits 843,286 5,351 2.52% 872,895 5,955 2.74% ---------- ------- ---------- ------- Total interest- bearing deposits 1,506,673 6,489 1.71% 1,546,950 7,131 1.85% Federal funds purchased 2,847 2 0.28% 5,103 2 0.16% Securities sold under agreement to repurchase 63,989 126 0.78% 72,037 124 0.69% FHLB borrowed funds 288,406 2,379 3.27% 277,702 2,359 3.41% Subordinated debentures 47,520 623 5.20% 47,543 659 5.56% ---------- ------- ---------- ------- Total interest- bearing liabilities 1,909,435 9,619 2.00% 1,949,335 10,275 2.11% ------- ------- Non-interest bearing liabilities Non-interest bearing deposits 290,435 285,637 Other liabilities 14,371 13,219 ---------- ---------- Total liabilities 2,214,241 2,248,191 Shareholders' equity 357,106 342,092 ---------- ---------- Total liabilities and shareholders' equity $2,571,347 $2,590,283 ========== ========== Net interest spread 3.92% 3.74% Net interest income and margin - FTE $24,699 4.26% $23,644 4.08% ======= ======= Home BancShares, Inc. Consolidated Net Interest Margin (Unaudited) Nine Months Ended ------------------------------------------------------ September 30, 2009 September 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 $ 6,762 $ 27 0.53% $ 5,795 $ 127 2.93% Federal funds sold 9,095 12 0.18% 15,640 289 2.47% Investment securities - taxable 202,333 6,673 4.41% 289,059 9,740 4.50% Investment securities - non-taxable - FTE 127,333 6,553 6.88% 111,206 5,645 6.78% Loans receivable - FTE 1,975,626 88,945 6.02% 1,903,891 97,459 6.84% ---------- -------- ---------- -------- Total interest- earning assets 2,321,149 102,210 5.89% 2,325,591 113,260 6.51% -------- -------- Non-earning assets 265,375 248,976 ---------- ---------- Total assets $2,586,524 $2,574,567 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY --------------- Liabilities Interest- bearing liabilities Savings and interest- bearing transaction accounts $ 668,227 $ 3,599 0.72% $ 679,667 $ 8,822 1.73% Time deposits 876,304 18,139 2.77% 927,573 27,071 3.90% ---------- -------- ---------- -------- Total interest- bearing deposits 1,544,531 21,738 1.88% 1,607,240 35,893 2.98% Federal funds purchased 3,910 6 0.21% 8,700 168 2.58% Securities sold under agreement to repurchase 73,509 361 0.66% 112,612 1,349 1.60% FHLB borrowed funds 282,356 7,128 3.38% 257,786 6,873 3.56% Subordinated debentures 47,543 1,958 5.51% 47,634 2,314 6.49% ---------- -------- ---------- -------- Total interest- bearing liabilities 1,951,849 31,191 2.14% 2,033,972 46,597 3.06% -------- -------- Non-interest bearing liabilities Non-interest bearing deposits 280,317 240,449 Other liabilities 11,816 13,527 ---------- ---------- Total liabilities 2,243,982 2,287,948 Shareholders' equity 342,542 286,619 ---------- ---------- Total liabilities and shareholders' equity $2,586,524 $2,574,567 ========== ========== Net interest spread 3.75% 3.45% Net interest income and margin - FTE $ 71,019 4.09% $ 66,663 3.83% ======== ========
CONTACT: Home BancShares, Inc. Brian S. Davis, Director of Financial Reporting (501) 328-4770