Business
. A financial holding company headquartered in Conway, Arkansas, offering a broad array
of financial services through five wholly owned bank subsidiaries.
. As of March 31, 2006, HOMB had, on a consolidated basis, total assets of $2.0 billion,
loans receivable of $1.2 billion, total deposits of $1.5 billion, and shareholders’ equity of
$169.0 million.
. Generates most of revenue from interest on loans and investments, service charges, and
mortgage banking income.
. Deposits are the primary source of funding.
Acquisitions increase 2006 first quarter’s operating performance
. Net income increased $1.3 million, or 60.6%, to $3.5 million for the three-month period
ended March 31, 2006, from $2.2 million for the same period in 2005.
. The increase in earnings is primarily associated with acquisitions of Marine Bancorp,
Inc. and Mountain View Bancshares during the second and third quarters of 2005,
respectively, combined with organic growth of HOMB bank subsidiaries.
. For the quarter ended March 31, 2006 annualized return average equity was 8.51%,
annualized return on average assets was 0.74%, annualized net interest margin was
3.53%, and HOMB’s efficiency ratio was 66.68% (the efficiency ratio iscalculated by
dividing non-interest expense less amortization of core deposit intangibles by the sum of
net interest income on a tax equivalent basis and non-interest income).
Dividends
. HOMB has paid quarterly cash dividends on its common stock beginning with the
second quarter of 2003.
. $0.02 per common share for the first quarter of 2006, and total dividends in the amount
of $0.07 per common share in 2005, $0.04 per common share in 2004 and $0.01 per
common share in 2003.
. Anticipates continuing to pay cash dividends on the common stock in the foreseeable
future, subject to the prior payment of dividends on outstanding shares of preferred stock
and interest on subordinated debentures.
. Dividends of $0.25 per share must first be paid on Class A preferred stock and $0.57
per share on Class B preferred stock.
Use of $38.7mm in IPO proceeds
For general corporate purposes, which may include, among other things, meeting
working capital needs and providing investments in bank subsidiaries to support growth,
including development of additional banking offices
. Additionally, net proceeds may be used to finance bank acquisitions, although
HOMB has no present plans in that regard.