Home Bancshares reports record net income of $319 million in 2021

by Roby Brock ([email protected]) 371 views 

A solid fourth quarter capped a record year for Home Bancshares, parent company to Centennial Bank, and with its pending entry into the Texas market, the future looks bright.

The Conway-based financial institution reported Thursday (Jan. 20) fourth quarter net income of $73.4 million, or 45 cents per share, down from $81.8 million a year ago. Fourth quarter revenue was $171 million, down from $181.9 million in the comparable year’s fourth quarter.

Home Bancshares reported net income for the year ended December 31, 2021 of $319.021 million, or $1.94 earnings per share, better than the $214.448 million in 2020. Net income and earnings per share for the year ended December 31, 2021 were both records for the bank holding company.

This week, Home Bancshares completed a $300 million public offering that it intends to use for general corporate purposes and growth capital.

“The year 2021 delivered numerous exceptional results for Home Bancshares including several record-setting metrics. As we end 2021 with record profits and peer leading asset quality, combined with our recent sub-debt note issuance, Home Bancshares is starting out 2022 with a fortress balance sheet and poised to pivot in any direction where opportunities arise,” said Home Bancshares Chairman John Allison.

Other financial highlights for the end of the fiscal year included:

  • Total loans receivable were $9.84 billion on December 31, 2021 compared to $9.9 billion on September 30, 2021.
  • Total deposits were $14.26 billion on December 31, 2021 compared to $14 billion on September 30, 2021.
  • Total assets were $18.05 billion on December 31, 2021 compared to $17.77 billion on September 30, 2021.

“A strong fourth quarter assisted Home Bancshares in reaching records for both net income and earnings per share for the year ended December 31, 2021. The fourth quarter also saw continued strong asset quality as the company determined an additional provision for credit loss was not necessary. Another year where our solid offense and defense have played well for us,” said Centennial Bank President and CEO Tracy French.

Home Bancshares said its previously announced $918 million acquisition of Happy Bancshares, Inc. of Texas is expected to close during the first quarter of 2022, subject to Federal Reserve Board approval. The bank currently has 76 branches in Arkansas, 78 branches in Florida, 5 branches in Alabama and one branch in New York City. Happy State Bank has 64 branches in Texas. Upon completion of the transaction, Home Bancshares will be among the 75 largest banks headquartered in the U.S.

Shares of Home Bancshares (NYSE: HOMB) closed trading on Wednesday at $24.87. The company’s stock has traded between a low of $20.69 per share and a high of $29.76 per share over the past year.