Home BancShares Posts Record Second Quarter Profits

BusinessCentral ArkansasNortheast ArkansasNorthwest Arkansas

by Talk Business & Politics staff ([email protected]) July 17, 2014 11:13 am 89 views 

Home BancShares Inc. on Thursday reported record second quarter earnings, easily beating a year ago profits and matching Wall Street expectations to the penny.

For the period ended June 30, the Conway-based parent of Centennial Bank posted quarterly profit of $28.4 million, or 43 cents per share, up nearly 60.5 percent, or $10.8 million, from $17.7 million and 31 cents a year ago. A survey of analysts polled by MarketWatch had expected the fast-growing Arkansas bank to report earnings of 43 cents per share.

Excluding after tax items, Home Bancshares reported second quarter earnings of 44 cents per share versus 32 cents a share a year ago. Company Chairman John Allison said he was pleased with the record quarterly results and is looking to continue to grow in the future.

“During the upcoming quarters, we recognize there is a need for organic loan growth,” Allison said. “We are encouraged by the opportunities we have in front of us because we currently have the largest unfunded loan pipeline in our history.”

Randy Sims, CEO of the Conway holding bank, added that the second quarter earnings reported represented “the most profitable quarter in the company’s history.”

“These improvements and metrics reported by the company during the second quarter of 2014 are impressive,” Sims said.

During the second quarter, Home BancShares said it closed or merged four Arkansas and two Florida locations. In late April, Home BancShares purchased Traditions Bank of Florida in a stock deal worth $43 million. That transaction closed on Thursday (July 17).  Following that deal, the Arkansas bank said it had $7.1 billion in total assets, $5.6 billion in deposits, $4.6 billion in loans and 156 branches across Arkansas, Florida and South Alabama.

Here are additional highlights of Home BancShares second quarter results:

  • Net interest income for the second quarter of 2014 increased 74.0% to $78.0 million from $44.8 million during the second quarter of 2013.
  • Total non-covered loans were $4.13 billion at June 30, 2014. Total covered loans came in at $263.2 million for the same period.
  • Stockholders’ equity was $897.2 million at June 30, 2014 compared to $841.0 million at December 31, 2013, an increase of $56.3 million.

In the past year, Home BancShares stock has touched a 52-week low of $24.83 in late September and hit a 52-week peak of $38.98 on the last day of trading in 2013. At Thursday’s opening bell, shares of the Conway-based bank were trading at $30.40, down 59 cents.