Home BancShares 2019 net income down 3.6%, total revenue up

by Talk Business & Politics staff ([email protected]) 312 views 

Conway-based Home BancsShares, the parent company of Centennial Bank, posted full year net income of $289.539 million, down 3.6% compared with 2018 net income. Full year revenue totaled $817.504 million, up 3.7% from the 2018 period.

Fourth quarter net income was $73.3 million, better than the $71 million in the same quarter of 2018. Earnings per share of 44 cents beat the consensus estimate of 42 cents. Revenue during the quarter was $167.8 million, up from the $163.8 million in the same quarter of 2018. The fourth quarter revenue also beat the consensus estimate of $164.69 million.

“I am very pleased with our fourth quarter results as well as our performance for all of 2019,” John Allison, Home BancShares board chairman, said in the earnings report posted Thursday (Jan. 16). “Increasing our profitability during a year of fluctuating interest rates is certainly an accomplishment to be proud of.”

Full year interest income for the bank was $717.988 million, better than the $685.368 million in 2018. Non-interest income for the year was $99.516 million, down from $102.832 million in 2018.

Following are some of the key metrics in the quarterly and full-year earnings report.
• Total loans receivable were $10.87 billion at Dec. 31, 2019 compared to $11.07 billion at Dec. 31, 2018.
• Total deposits were $11.28 billion at Dec. 31, 2019 compared to $10.9 billion at Dec. 31, 2018.
• Total assets were $15.03 billion at Dec. 31, 2019 compared to $15.3 billion at Dec 31, 2018.
• The allowance for loan losses was $102.1 million at Dec. 31, 2019, or 0.94% of total loans, compared to $108.8 million, or 0.98% of total loans, at Dec. 31, 2018.
• Return on Assets in the fourth quarter of 2019 was 1.94%, better than the 1.9% in the fourth quarter of 2018.
• Return on Equity in the fourth quarter of 2019 was 11.71%, down from the 12.05% in the fourth quarter of 2018.

“Our steady increase in two key banking metrics: diluted earnings per share and return on assets, showcase the solid foundation of Home BancShares,” Tracy French, Centennial Bank president and CEO, said in the report.

The bank has 77 branches in Arkansas, 78 branches in Florida, 5 branches in Alabama and one branch in New York City.

The share price of Home BancShares (NASDAQ: HOMB) closed at $19.17 on Wednesday and was trading Thursday around 6% higher. In the past 52 weeks the share price has ranged between $16.38 to $20.37.

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