Bear State’s Profits, Revenue Double On Recent Consolidation And Mergers

by Talk Business & Politics staff ([email protected]) 239 views 

Bear State Financial, Inc. saw a stark improvement in its second quarter profits after the former Harrison-based regional bank consolidated its three subsidiary banks into a single charter earlier this year.

For the period ended June 30, the Little Rock-based banking holding company reported second quarter earnings of $2.5 million, or eight cents per share, well ahead of last year’s net loss of $2.9 million, or 12 cents a share.

Core earnings for the Arkansas bank, which exclude one-time merger and acquisition-related costs, were $2.9 million, or nine cents per share, compared to core earnings of $1 million, or four cents per share, in the second quarter of 2014. Second quarter revenues more than doubled to $15.3 million, up 52% from $7.3 million a year ago.

The second quarter financial results represent the first full quarter of operations following Bear State’s consolidation of First Federal Bank, First National Bank and Heritage Bank under one bank charter, while also integrating all of the bank’s operations to a single technology platform.

In late June, Bear State also agreed to purchase Joplin, Mo.-based Metropolitan National Bank (MNB) in an all-stock deal that will add $444 million in assets to the fast-growing Little Rock bank’s portfolio.

Under terms of that deal, Bear State will acquire 100% of the stock of MNB, which is owned by Marshfield Investment Co. in Springfield, Mo. Marshfield shareholders will then receive proceeds of approximately $70 million, consisting of some $42 million in Bear State common stock and $28 million in cash.

The merger is expected to close during the fourth quarter of 2015, subject to customary regulatory approvals and other conditions, Bear State officials said. Currently, Metropolitan operates eleven full service locations throughout Southwest Missouri and one loan production office in Joplin. The Little Rock bank said it anticipates the deal to be immediately accretive to its earnings and bottom line.

Here are additional highlights of Bear State’s second quarter financial results:

· Net interest income for the second quarter 2015 was $12.0 million, compared to $5.5 million for the same period in 2014. Net interest income for the six months ended June 30, 2015 was $24.5 million, compared to $9.4 million for the same period in 2014.

· Net interest margin measured 3.71% for the second quarter 2015, compared to 3.33% for the same period in 2014. Net interest margin for the six months ended June 30, 2015 was 3.77%, compared to 3.21% for the same period in 2014.

· Total assets were $1.45 billion at both June 30, 2015 and June 30, 2014. Total deposits were $1.21 billion at June 30, 2015, a 2% decrease compared to $1.23 billion at June 30, 2014. Total loans were $1.05 billion at June 30, 2015, an increase of $44 million, or 4%, from June 30, 2014.

· Total stockholders’ equity was $175 million at June 30, 2015, a 22% increase from $143 million at June 30, 2014.

In Friday’s midday trading session, Bear State’s shares were trending higher, up seven cents at $9.08.