Home BancShares, Inc. Announces 32.1% Increase In Third Quarter Earnings

CONWAY, Ark., Oct. 21, 2010 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced third quarter earnings of $9.6 million, or $0.31 diluted earnings per common share, compared to $7.2 million, or $0.29 diluted earnings per common share for the same quarter in 2009. This represents a $2.3 million, or 32.1% increase in the 2010 earnings over 2009. Additionally, the $9.6 million base earnings (net income excluding gain on acquisitions) for the third quarter of 2010 were the best base earnings in the Company's history.

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 third quarter of 2010 was $0.33, compared to $0.30 for the same period in 2009.

"We are pleased with the exceptional results for the quarter just ended," said John Allison, Chairman. "The FDIC acquisitions of Coastal Community Bank, Bayside Savings Bank and Wakulla Bank are strong opportunistic acquisitions for our Company allowing us to expand our footprint into the Florida Panhandle. We continue to uphold our status as a 'well-capitalized' financial institution positioned to take advantage of FDIC deals as they become reasonably opportunistic."

"Our Company has continued to pick up momentum during the third quarter of 2010. We've had another solid quarter with a record quarterly net interest income, a sub 50 core efficiency ratio, and an improving net interest margin," said Randy Sims, Chief Executive Officer. "To see our Company attain three additional FDIC acquisition opportunities since our last earnings release was tremendous. We are proud to welcome these banks into the Centennial Bank family."

Operating Highlights

Net interest income for the third quarter of 2010 was a quarterly record for the Company, increasing 27.4% to $30.2 million compared to $23.7 million for the third quarter of 2009. Net interest margin, on a fully taxable equivalent basis, was 4.35% in the quarter just ended compared to 4.26% in the third quarter of 2009, an increase of 9 basis points. The Company's ability to improve pricing on our deposits and minimize the decline of interest rates on earning assets allowed the Company to improve net interest margin.