Home BancShares tops $305 million in net income in 2022

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by Roby Brock ([email protected]) January 19, 2023 7:48 am 950 views 

Conway-based Home BancShares, the parent company of Centennial Bank, reported net income of $305 million, surviving “headwinds” it said it encountered in West Texas where it picked up new assets in its buyout of Happy Bancshares of Texas.

Home BancShares reported revenue of $933.7 million for the year, with $272.3 million coming in the fourth quarter. Net income was $305.3 million for 2022, with $115.7 million reported in the fourth quarter. Earnings per share was $1.57.

One year ago, the financial firm reported net income of $319 million, or $1.94 earnings per share.

Since then, Home BancShares completed its merger with Happy Bancshares of Texas bringing its presence in the Lone Star State to 63 branches. The bank has 76 branches in Arkansas, 78 branches in Florida, five branches in Alabama, and one branch in New York City.

“It’s obvious all banks are not created equal. HOMB continues to try and separate ourselves from the pack. Financial strength is paramount, and I’m proud that Home BancShares is able to provide strength to our customers, especially during tough economic times. Despite the headwinds that arose out of West Texas, HOMB was able to rely on the patience and strength of the full franchise to deliver strong performance for the year,” said Home BancShares Chairman John Allison.

Financial highlights included:

  • Net interest income on a fully taxable equivalent basis was $217.7 million for the three-month period ended December 31, 2022;
  • The company reported $56.7 million of non-interest income for the fourth quarter of 2022;
  • Total loans receivable were $14.41 billion at December 31, 2022, compared to $13.83 billion at September 30, 2022;
  • Total deposits were $17.94 billion at December 31, 2022, compared to $18.54 billion at September 30, 2022; and
  • Total assets were $22.88 billion at December 31, 2022, compared to $23.16 billion at September 30, 2022.

“As a result of the discipline, patience and liquidity maintained by HOMB, we were able to profitably grow loans by $580 million in the fourth quarter, increasing loan yield to 6.23% from 5.63%, which is impressive by any standard in a rising rate environment,” said Tracy French, Centennial Bank President and Chief Executive Officer.

Shares of Home BancShares (NYSE: HOMB) closed trading Wednesday (Jan. 18) at $23.12. The company’s stock has traded between a low of $19.83 per share and a high of $26.20 per share over the past year.