Bear State Earnings Boosted by Income Tax Benefit
by February 27, 2015 12:58 pm 117 views
Bear State Financial, Inc. reported fourth quarter earnings of $4.8 million, or 14 cents per share, rallying from flat earnings a year ago of nearly $200,000. For the full year of 2014, net income was $24.3 million, or 84 cents per share, compared to earnings of $729,000, or three cents, in fiscal 2013.
The Harrison-based banking group said the improved earnings resulted from an income tax benefit that reversed its valuation allowance against its deferred tax assets. Those gains profited the bank in the fourth quarter and full year 2014 to the tune of $1.6 million and $21.9 million, respectively,
Overall, fourth quarter 2014 core earnings were $3.4 million or 10 cents per common share, compared to core earnings of $248,000 or one cents common share in the fourth quarter of 2013.
Earlier this summer, Bear State completed its merger of First National Security Co. in Hot Springs and Heritage Bank headquartered in Jonesboro, Arkansas. The Harrison financial institution, whose board of directors includes former Alltel Corp. officers Rick Massey and Scott Ford, has improved its balance sheet over the past year and said this summer that it “expects further public announcements regarding its management and key operations as the (bank’s) integration project nears completion.”
For the year, Bear State’s total assets were $1.51 billion at December 31, 2014, a 176% increase compared to $549 million in 2013. Total deposits were $1.26 billion, a 169% boost to $470 million from a year ago. The increase in both assets and deposits were primarily due to the First National merger, officials said.
Total loans, including those acquired and held for sale, were $1.06 billion at the end of fiscal 2014, an increase of $673 million, or 173%, compared to the same period in 2013.
Common stockholders’ equity jumped 140% to $170 million for the period ended Dec. 31, 2014, up 140% from $71 million at end of fiscal 2013.
In late December, the Arkansas bank completed an 11% stock dividend by issuing one share of common stock for every nine shares of such stock outstanding as of December 1, 2014. Total shares outstanding at the end of fiscal 2014 were 33.3 million.
The former First Federal Bancshares currently operates 46 branch offices throughout Arkansas and Southeast Oklahoma. In Friday’s session, Bear State shares were up 3% at $10.84.