Bear State Earnings Jump To $22.7 Million On Tax Benefit
by November 6, 2014 4:38 pm 99 views
Bear State Financial reported third quarter earnings of $22.7 million compared to earnings of $143,000 one year ago.
The huge net income spike includes an income tax benefit of $20.3 million primarily resulting from the reversal of the company’s valuation allowance against its deferred tax assets.
On June 13, 2014, Harrison-based Bear State completed its previously announced merger of First National Security Company, the parent company for First National Bank headquartered in Hot Springs and Heritage Bank headquartered in Jonesboro. Bear State is also the holding company for First Federal Bank.
Bear State said it expects the bulk of integration projects tied to the bank buys to be completed by the second quarter of 2015. It also expects further public announcements regarding its management and key operations as the integration project nears completion.
Key quarterly highlights included:
- Total assets were $1.53 billion at September 30, 2014, a 189% increase compared to $530 million at September 30, 2013.
- Total deposits were $1.28 billion at September 30, 2014, a 181% increase compared to $455 million at September 30, 2013. The increase in both assets and deposits was primarily due to the First National merger.
- Total loans, including those acquired, were $1.06 billion at September 30, 2014, an increase of $701 million, or 194%, compared to the same period in 2013.
- Net interest income for the third quarter 2014 was $14.7 million, compared to $3.8 million for the same period in 2013.
- Non-interest income is generated primarily through deposit account fee income, profit on sale of loans, and earnings on life insurance policies.
Shares of Bear State Financial (NASDAQ: BSF) closed Thursday at $9.05. The company’s stock has been trading between $7.00 and $9.63 per share during the past year.