Home Bancshares sees rising net income in Q3

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by Roby Brock ([email protected]) October 21, 2021 7:35 am 443 views 

Home Bancshares recorded a $75 million profit in the third quarter as the Conway-based financial enterprise racked up year-to-date net income of $245.7 million, the company said on Thursday (Oct. 21).

The $75 million quarter was an improvement over the $69.3 million Home Bancshares reported a year ago.

Home Bancshares is the parent company of Centennial Bank.

“We had a great third quarter and a great first nine months as our company is continuing on to another $300 million plus year for the fourth year in a row. On the Happy HOMB front, there may not have been a better deal done in the last several years, unless it was an MOE or a complete franchise overlap that eliminated almost all of the branches. As a well-known analyst said, ‘HOMB threaded the needle perfectly on this deal.’ The market reaction has been favorable and a nod to the work we put into the structure of a triple accretive deal,” said John Allison, Chairman.

Home Bancshares announced in mid-September it would acquire Texas-based Happy State Bank in a $918 million blockbuster deal. The acquisition is expected to close in the first quarter of 2022.

Bank leaders said they are seeing a return to some normalcy in the post-pandemic world when government-backed lending helped prop up the U.S. economy.

“September saw the first quality loan growth we have seen in some time. Loans recorded an increase of $55 million ex-PPP for the month – couple that with a $250 million increase in unfunded commitments for the quarter, and we are optimistic that quality loans will continue to build. I am personally excited about our partnership with Happy State Bank and am looking forward to working with their team in 2022 and beyond. I could not be happier with this deal as it works for both Happy and HOMB employees and shareholders,” said Tracy French, Centennial Bank president and CEO.

Highlights for the quarter included:

  • Net income for the three-month period ended September 30, 2021 was $75.0 million, or $0.46 earnings per share.
  • Net income for the nine-month period ended September 30, 2021 was $245.7 million, or $1.49 earnings per share, both of which are records for the company.
  • Net interest income on a fully taxable equivalent basis was $146.4 million for the three-month period ended September 30, 2021.
  • The company reported $29.2 million of non-interest income for the third quarter of 2021.
  • Total loans receivable were $9.90 billion at September 30, 2021 compared to $10.20 billion at June 30, 2021.
  • Total deposits were $14.00 billion at September 30, 2021 compared to $13.89 billion at June 30, 2021.
  • Total assets were $17.77 billion at September 30, 2021 compared to $17.63 billion at June 30, 2021.

Home Bancshares currently has 76 branches in Arkansas, 78 branches in Florida, 5 branches in Alabama and one branch in New York City.

Home Bancshares (NASDAQ: HOMB) stock closed trading on Wednesday at $23.86. Shares were up in pre-market activity on Thursday to around $24.16 per share.

The company’s shares have traded between a 52-week low of $15.83 and a high of $29.76.