Home Bancshares Posts Another Record Quarter

Business

by Talk Business & Politics staff ([email protected]) April 17, 2014 11:24 am 83 views 

Home Bancshares, parent company of Centennial Bank, reported a record first quarter profit on Thursday (April 17).

The Conway-based financial institution posted profits of $27.3 million, up from $17.5 million one year ago. Home Bancshares acquired Jonesboro-based Liberty Bancshares last year for approximately $280 million.

“The company has achieved yet another historically record quarter during the first quarter of 2014,” said Home Bancshares Chairman John Allison. “Our team continues to be dedicated on working toward recognizing the anticipated cost savings as quickly as possible from last quarter’s acquisition of Liberty. I am looking forward to watching our team succeed in this process and pass along the results to our deserving shareholders.”

Home Bancshares reported that it saw improvements in several of its loan pools associated with acquisitions made with the help of the FDIC. Home Bancshares went on an acquisition tear in the post-recession period buying several Florida banks that were financially troubled.

“During our first quarter 2014 impairment testing, four FDIC loss sharing pools evaluated by the company were determined to have a material projected credit improvement. As a result of this improvement, the company will recognize approximately $11.4 million as an adjustment to yield over the weighted average life of the loans ($2.0 million was recognized during the first quarter of 2014),” Home Bancshares disclosed in its earnings statement.

Other financial highlights for the quarter included:

  • Net interest income for the first quarter of 2014 increased 73.6% to $77.0 million from $44.3 million during the first quarter of 2013.
  • The company reported $12.2 million of non-interest income for the first quarter of 2014, compared to $9.0 million for the first quarter of 2013.
  • Total non-covered loans were $4.13 billion at March 31, 2014 compared to $4.19 billion at December 31, 2013.
  • Total covered loans were $270.6 million at March 31, 2014 compared to $282.5 million at December 31, 2013.
  • Total deposits were $5.34 billion at March 31, 2014 compared to $5.39 billion at December 31, 2013.
  • Total assets were $6.78 billion at March 31, 2014 compared to $6.81 billion at December 31, 2013.

Home Bancshares also announced plans to close or merge four Arkansas and two Florida locations during the second quarter of 2014. The company currently has 88 branches in Arkansas, 52 branches in Florida and 7 branches in Alabama.

Shares of Home Bancshares (NASDAQ: HOMB) opened trading on Thursday at $33.11. The company’s stock has traded between $18.88 and $38.98 during the past 52 weeks.