Home Bancshares Q2 Profits Rise To $17.7 Million

Business

by Talk Business & Politics staff ([email protected]) July 18, 2013 8:39 am 73 views 

Home BancShares, Inc., parent company of Centennial Bank, saw second quarter net income rise to $17.7 million, up from $15.5 million one year ago.

The Conway-based bank holding company recently acquired Jonesboro-based Liberty Bancshares for $280 million.

“The second quarter’s record net income is another exceptional achievement for Home BancShares,” said John Allison, Chairman. “We also continue to exhibit strong capital levels, which remain considerably above the regulators’ capital requirements. These strong reserves placed us in a position to participate in an opportunity like the recently announced Liberty Bank market acquisition. Merging these two similarly sized Arkansas-based companies with comparable cultures and history is a game-changer for Home BancShares. We are confidently optimistic of the company’s continued bright future when Liberty gets on board.”

Key operational highlights from the quarter include:

  • Net interest income for the second quarter of 2013 increased 14.5% to $44.8 million from $39.2 million during the second quarter of 2012.
  • Non-interest income fell to $9.8 million compared to $11.1 million for the second quarter of 2012.
  • Total non-covered loans were $2.34 billion at June 30, 2013 compared to $2.33 billion at December 31, 2012.
  • Total covered loans were $329.8 million at June 30, 2013 compared to $384.9 million at December 31, 2012.
  • Total deposits were $3.33 billion at June 30, 2013 compared to $3.48 billion at December 31, 2012.
  • Total assets were $4.09 billion at June 30, 2013 compared to $4.24 billion at December 31, 2012.

“For the ninth consecutive quarter in the company’s history, we have again reported the most profitable quarter, increasing net income by $111,000 or 0.6% from our previously reported record earnings,” said Randy Sims, Chief Executive Officer. “Not only did the company display an outstanding return on average assets of 1.71% for the second quarter of 2013, but we also improved our net interest margin by 53 basis points when comparing the second quarter of 2013 to the second quarter of 2012.”

Home Bancshares (NASDAQ: HOMB) closed trading on Wednesday at $27.23 per share. The company’s stock has traded between $14.75-$27.93 in the last 52 weeks.