Home Bancshares $30 Million Q4 Leads To Record Annual Profits

BusinessCentral ArkansasNortheast ArkansasNorthwest Arkansas

by Talk Business & Politics staff ([email protected]) January 15, 2015 8:36 am 78 views 

Home Bancshares, parent company of Centennial Bank, reported fourth quarter net income of $29.9 million, which led to full year earnings of $113.1 million – a 70% increase over the previous year.

The Conway-based financial institution also reported diluted earnings per share for the year ended 2014 of $1.70 compared to $1.14 per share for 2013.

Home Bancshares was not as visible on the acquisition scene in 2014 as it has been in previous years, but it still made headlines. It completed its acquisition of Florida Traditions and Broward Financial Holdings, Inc., as well as its megamerger with Liberty Bancshares of Jonesboro.

“I am excited to report the company has achieved another record quarter and record year with outstanding metrics,” said John Allison, Home Bancshares Chairman. “Our team stayed focused throughout the year on improving efficiencies, executing acquisition opportunities and growing loans and we’ve reaped the benefits of this hard work through record results. I am looking forward to watching our team succeed again in the coming year as they continue to improve the company’s financial metrics in order to maximize returns to our shareholders.”

Key financial highlights for the bank included:

  • Net interest income for the fourth quarter of 2014 increased 24.3% to $83.4 million from $67.1 million during the fourth quarter of 2013.
  • Home Bancshares reported $10.2 million of non-interest income for the fourth quarter of 2014, compared to $12.2 million for the fourth quarter of 2013.
  • Total non-covered loans were $4.82 billion at December 31, 2014 compared to $4.19 billion at December 31, 2013.
  • Total covered loans were $240.2 million at December 31, 2014 compared to $282.5 million at December 31, 2013.
  • Total deposits were $5.42 billion at December 31, 2014 compared to $5.39 billion at December 31, 2013.
  • Total assets were $7.40 billion at December 31, 2014 compared to $6.81 billion at December 31, 2013.

“We are pleased with another quarter of significant organic loan growth totaling $113.2 million for the fourth quarter of 2014,” said Randy Sims, Home Bancshares CEO. “On the income side, diluted earnings per share excluding merger expenses was $0.46 per share which brings us to the fifteenth consecutive quarter reporting the most profitable quarter in the company’s history. We once again improved both the core efficiency ratio and return on average assets excluding merger expenses ratio to 40.15% and 1.67%, respectively, for the fourth quarter of 2014.”

Shares of Home Bancshares (NASDAQ: HOMB) closed trading on Wednesday at $28.95. The company’s stock has traded between $27.60 per share and $36.88 per share during the past year.

Home Bancshares has 82 branches in Arkansas, 61 branches in Florida and 7 branches in Alabama.