Earnings up for Home Bancshares, Simmons First

by The City Wire staff ([email protected]) 49 views 

Two expanding Arkansas-based banks reported positive earnings in the third quarter, with Conway-based Home Bancshares posting its 10th consecutive quarter of record increases.

For two-and-a-half years, it’s been the same song, different verse.

Home Bancshares, Inc., parent company of Centennial Bank, announced record third quarter profits of $18.36 million in its third quarter compared to $16.1 million one year ago. The Conway-based financial institution increased its third quarter earnings by $2.3 million or 14.1% for the three months ended Sept. 30, 2013 compared to the same period of the previous year.

Net income is likely to set more records in the future as Home Bancshares completes its $280 million buyout of Jonesboro-based Liberty Bancshares later this year.

“Home Bancshares has achieved yet another record quarter for net income, making it the tenth consecutive quarter to meet this outstanding accomplishment,” said Chairman John Allison. “Our strong capital levels continue to remain considerably above the regulators’ capital requirements, while our strong reserves have placed us in a position to partake in an opportunity like the upcoming Liberty Bank market acquisition. This game-changing merger of these two similarly sized Arkansas-based companies with comparable cultures and history makes us confidently optimistic of the company’s continued bright future when Liberty gets on board.”

Operating highlights for the quarter include:
• Net interest income for the third quarter of 2013 increased 20.0% to $46.4 million from $38.6 million during the third quarter of 2012.
• The company reported $9.3 million of non-interest income for the third quarter of 2013, compared to $10.6 million for the third quarter of 2012.
• Total non-covered loans were $2.38 billion at Sept. 30, 2013 compared to $2.33 billion at Dec. 31, 2012.
• Total covered loans were $308.1 million at Sept. 30, 2013 compared to $384.9 million at Dec. 31, 2012.
• Total deposits were $3.25 billion at Sept. 30, 2013 compared to $3.48 billion at Dec. 31, 2012.
• Total assets were $4.16 billion at Sept. 30, 2013 compared to $4.24 billion at Dec. 31, 2012.

Home Bancshares announced its acquisition of Liberty Bancshares in June of this year. The $280 million deal will give Home Bancshares a statewide footprint of 92 branches and an overall banking operation with $7.1 billion in assets.

Home Bancshares (NASDAQ: HOMB) stock closed trading on Wednesday at $31.53 a share. The company’s shares have been trading in the $15.39 to $33.10 range in the last year.

SIMMONS FIRST
Simmons First National Corp. posted third quarter net income of $6.93 million, an increase from one year ago when profits topped $6.76 million.

The Pine Bluff-based bank warned that it would encounter one-time expenses in the near future, in large part due to its $53 million acquisition of Little Rock-based Metropolitan National Bank.

“We are pleased with the core earnings results for the third-quarter,” said George Makris Jr., CEO-elect. “As a result of recent acquisitions and efficiency initiatives, we have and will continue to recognize one-time revenue and expense items which may skew our short-term core business results but provide long-term performance benefits. Our focus continues to be improvement in core operating income.”

Topline financials for the bank were generally positive. Key metrics include:
• Total loans, including those acquired, were $2.0 billion at Sept. 30, 2013, an increase of $98.1 million, or 5.3%, compared to the same period in 2012.
• At Sept. 30, 2013, total deposits were $2.8 billion, an increase of $43.5 million, or 1.6%, compared to the same period in 2012.
• Net interest income for the third quarter of 2013 was $31.6 million, an increase of $3.6 million, or 13.0%, from the same period of 2012.
• Non-interest income for the third quarter was $10.3 million, a decrease of $1.5 million, compared to the third quarter of 2012.

In early Sept., Simmons First National Corporation placed the winning bid for Metropolitan National Bank, as a result of Metropolitan’s parent company, Rogers Bancshares, bankruptcy proceeding. The $53.6 million acquisition of the bank is expected to close in December.

Shares of Simmons First (NASDAQ: SFNC) closed trading Wednesday at $31.88. The company’s stock has traded between $22.36 and $32.10 a share during the past 52 weeks.

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