Simmons, Home BancShares see quarterly income rise

Simmons First National Corp. posted second quarter 2013 net income of $6.58 million, a slight increase from the $6.54 million it reported one year ago.

The Pine Bluff-based financial institution pointed to several improvements in its metrics.

“Considering interest rates continue at historical lows, we were pleased with our 5.3% quarterly EPS increase. More so, we were pleased with the positive trends in our balance sheet, as reflected in our normalized organic loan growth of approximately 3%, which enabled us to produce a net interest margin of 3.96%. The organic loan growth, coupled with strong asset quality, bodes well for the balance of the year,” said George Makris, CEO-Elect.

Makris also noted that loan growth was improving, but he stopped short of declaring a full-blown rebound in lending activity.

“This was the third consecutive quarter of organic loan growth. While still not enough to call a trend, we believe it is very positive in that the growth is coming throughout our markets in Arkansas, Kansas and Missouri. Needless to say, the economy remains in a slow recovery, which makes this growth even more significant,” Makris said.

Key operational highlights from the quarter include:
• Total loans were $1.9 billion at June 30, 2013, an increase of $149.7 million, or 8.8%, compared to the same period in 2012.

• Loans acquired in FDIC-assisted acquisitions grew $113.0 million, net of discounts, and legacy loans (excluding acquired loans) grew $35.7 million.

• At June 30, 2013, total deposits were $2.8 billion, an increase of $183.8 million, or 7.0%, compared to the same period in 2012.

• Net interest income for the second quarter of 2013 was $29.6 million, an increase of $2.3 million, or 8.6%, from the same period of 2012.

• Non-interest income for the second quarter was $11.3 million, an increase of $180,000, or 1.6%, compared to the second quarter of 2012.

Simmons First (NASDAQ: SFNC) shares closed trading on Wednesday at $27.95. During the past year, the company’s stock has ranged between a low of $22.36 and a trading high of $28.00 per share.

HOMEBANCSHARES
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 Dec. 31, 2012.

• Total covered loans were $329.8 million at June 30, 2013 compared to $384.9 million at Dec. 31, 2012.

• Total deposits were $3.33 billion at June 30, 2013 compared to $3.48 billion at Dec. 31, 2012.

• Total assets were $4.09 billion at June 30, 2013 compared to $4.24 billion at Dec. 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.