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Business Description We are a financial holding company headquartered in Conway, Arkansas. Our five wholly owned community bank subsidiaries 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 our 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. We have achieved significant growth through acquisitions, organic growth and establishing new (also commonly referred to as de novo) branches. Our diluted earnings per share increased from $0.29 for the year ended December 31, 2001, to $0.82 for 2005. In addition from December 31, 2001, to March 31, 2006, we have: • increased our total assets from $322.0 million to $2.0 billion; • increased our loans receivable from $235.7 million to $1.2 billion; • increased our total deposits from $237.3 million to $1.5 billion; and • expanded our branch network from eight to 48. We were established in 1998 when an investor group led by John W. Allison, our Chairman and Chief Executive Officer, and Robert H. Adcock, Jr., our former Vice Chairman and the current Arkansas State Bank Commissioner, formed Home BancShares, Inc. to acquire a bank charter and establish First State Bank in Conway, Arkansas. We or members of our management team have also been involved in the formation of two of our other bank subsidiaries — Twin City Bank and Marine Bank — both of which we acquired in 2005. We have also acquired and integrated our two other bank subsidiaries — Community Bank and Bank of Mountain View — in 2003 and 2005, respectively. Between Home BancShares and TCBancorp (a bank holding company in which we were the largest investor, and which we subsequently acquired in 2005), we have raised $131.8 million in cash through intrastate offerings of common stock since 1999. We acquire, organize and invest in community banks that serve attractive markets, and build our community banks around experienced bankers with strong local relationships. The historical growth of our two largest bank subsidiaries compares favorably with the fastest growing newly chartered (also commonly referred to as de novo) banks in the United States: First State Bank would rank 20th compared with the 140 commercial banks established in 1998 (based on total asset growth from December 31, 1998, to December 31, 2005), and Twin City Bank would rank seventh compared with the 173 commercial banks established in 2000 (based on total asset growth from December 31, 2000, to December 31, 2005). Our Bank Subsidiaries and Investments We believe that many individuals and businesses prefer banking with a locally managed community bank capable of providing flexibility and quick decisions. The execution of our community banking strategy has allowed us to rapidly build our network of bank subsidiaries. First State Bank — In October 1998, we acquired Holly Grove Bancshares, Inc. for the purpose of obtaining a bank charter. Following the purchase, we changed the name of the bank subsidiary to First State Bank and relocated the charter to Conway, Arkansas, to serve the central Arkansas market. Since December 31, 1998, First State Bank’s assets have grown from $28.9 million to $469.0 million as of March 31, 2006. Twin City Bank — In May 2000, we were the largest investor in a group that formed a holding company (subsequently renamed TCBancorp), acquired an existing bank charter, and relocated the charter to North Little Rock, Arkansas. The holding company named its subsidiary “Twin City Bank,” which had been used by North Little Rock’s largest bank until its sale in 1994, and hired Robert F. Birch, Jr., who had been president of the former Twin City Bank. Twin City Bank grew quickly in North Little Rock and, in 2003, expanded into the adjacent Little Rock market. In January 2005, we acquired through merger the 68% of TCBancorp’s common stock we did not already own. Since December 31, 2000, Twin City Bank’s total assets have grown from $59.9 million to $636.9 million as of March 31, 2006. Community Bank — In December 2003, we acquired Community Financial Group, Inc., the holding company for Community Bank of Cabot. Prior to this acquisition, we had established a branch in Cabot, Arkansas, and had planned to branch further into this market. These plans were changed when the opportunity to acquire Community Bank of Cabot arose. At the time of the acquisition, Community Bank of Cabot was operating under a supervisory action primarily due to asset quality concerns. After we acquired the bank, the supervisory action was removed and management has worked diligently to improve asset quality. Community Bank’s non-performing loans have decreased from $6.7 million as of September 30, 2003, to $4.3 million as of December 31, 2005. Community Bank had total assets of $332.0 million as of March 31, 2006, and had a deposit market share in Cabot of 46% as of June 30, 2005. Marine Bank — In June 2005, we acquired Marine Bancorp, Inc., and its subsidiary, Marine Bank, in Marathon, Florida. Marine Bank was established in 1995. Our Chairman and Chief Executive Officer, John W. Allison, was a founding board member and the largest shareholder of Marine Bancorp, owning approximately 13.9% of its stock at the time of our acquisition. In 2002, to better position itself for growth, Marine Bank hired a new president and added other experienced bankers to its management team. Since December 31, 2002, Marine Bank’s total assets have grown from $114.7 million to $306.9 million as of March 31, 2006. Bank of Mountain View — In September 2005, we acquired Mountain View Bancshares, Inc., and its subsidiary, Bank of Mountain View. We were attracted to the Bank of Mountain View because of its strong profitability and 85% deposit market share in Mountain View as of June 30, 2005. Bank of Mountain View had $205.1 million total assets as of March 31, 2006. Investment in White River Bancshares — In May 2005, we invested $9.0 million to acquire 20% of the common stock of White River Bancshares, Inc., the holding company for Signature Bank in Fayetteville, Arkansas. In January 2006, we invested an additional $3.0 million to maintain this 20% ownership position. Signature Bank serves the growing northwest Arkansas market and is led by an experienced community banker with local relationships. Ron W. Strother, our President and Chief Operating Officer, serves on the boards of White River Bancshares and Signature Bank. Since opening in May 2005, Signature Bank has grown to $217.0 million in total assets as of March 31, 2006. ------- Our headquarters are located at 719 Harkrider, Conway, Arkansas 72032, and our telephone number is (501)328-4757. We maintain a website at www.homebancshares.com.