Acquisition-hungry Home BancShares Inc. said Thursday (Oct. 15) that third quarter profit jumped 30.6% after the Conway-based regional bank completed the takeover of another Florida bank and continued growing the company’s loan portfolio.
For the period ended Sept. 30, the parent company of Centennial Bank reported a quarterly profit of $35.7 million, or 52 cents per share, compared to $27.4 million, or 41 cents per share, for the same quarter in 2014.
Excluding the $474,000 of merger expenses associated with the recently completed acquisition of Florida Business BancGroup Inc., third quarter earnings were 53 cents per share. Bank officials also noted the third quarter financial results included nearly $350.8 million in quarterly organic non-covered loan growth and a core efficiency ratio of 39.3%.
Diluted earnings per share excluding intangible amortization for the third quarter of 2015 was 53 cents per share, compared to 42 cents a year ago. Wall Street had expected the Arkansas regional bank to report third quarter earnings of 52 cents per share, according to analysts surveyed by Thomson Reuters
"In the last six months, there has been a $906.1 million increase in our total loan portfolio," John Allison, board chairman, said in a statement. "By maintaining a strong capital position, Home BancShares was adequately prepared to support loan growth when the opportunities presented themselves. We will continue seeking growth opportunities in areas within and surrounding our existing footprint while supporting additional loan growth in our legacy organization so we can enhance the franchise value of HOMB and maximize returns to our shareholders."
Added Centennial Bank President and CEO Tracy French said the “growth momentum” continues with the Oct. 1 acquisition of Bay Cities (BancGroup) on Oct. 1.
Following are key financial highlights for the bank’s first quarter included.
• Net interest income for the third quarter of 2015 increased 15.9% to $91.1 million from $78.6 million during the third quarter of 2014.
• Total non-covered loans were $5.9 billion at September 30, 2015 compared to $4.82 billion at Dec. 31, 2014.
• The Arkansas bank reported $16.5 million of non-interest income for the third quarter of 2015, compared to $10.8 million for the third quarter of 2014. The extra income came from $6.6 million in service charges and fees, $6.3 million from service charges on deposits accounts, $3.1 million from mortgage lending income, $993,000 from other income, $548,000 from insurance commissions, and $398,000 from trust fees offset by the $2 million of net amortization on the FDIC indemnification asset.
• Total assets were $8.5 billion as of Sept. 30, 2015 compared to nearly $8.1billion a year ago.
• Total deposits rose slight to $5.95 billion versus $5.87 billion in the third quarter of 2014.
• Stockholders' equity was $1.09 billion at Sept. 30, 2015 compared to $1.02 billion at Dec. 31, 2014, an increase of $76 million.
As in the previous quarter, Home Bancshares continued to close non-performing and some acquired banks to improve synergies. There were two banks closed in Arkansas and Florida, and one Alabama location during the third quarter of 2015. There are plans to close one Arkansas and three Florida locations during the fourth quarter of 2015. Today, the Conway regional bank has 80 branches in Arkansas, 58 branches in Florida, 6 branches in Alabama and a loan production office in New York City.
Shares of the Arkansas regional bank (NASDAQ: HOMB) had settled at $39.80, down 1.31 or 3.2% after Wednesday’s closing bell. The company’s stock has traded in the range of $38.41 per share and $41.99 per share during the past 52 weeks.