Home BancShares produces healthy Q2 profits

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by Roby Brock ([email protected]) July 20, 2023 7:50 am 591 views 

After completing its big Texas merger, riding rising interest rates and navigating mixed signals in the economy, Home BancShares posted healthy second quarter profits.

The Conway-based financial institution, parent company to Centennial Bank and Happy State Bank, reported second quarter net income of $105.3 million, or 52 cents diluted earnings per share, versus $16 million one year ago when merger costs took a toll on earnings.

“The first six months of 2023 have been a challenging time for the banking industry; however, I am proud of the fortitude shown by Home BancShares,” said Home BancShares Chairman and CEO John Allison.

“Our performance metrics in the second quarter were impressive, and I am the most proud of the fact that we can more than cover our uninsured and uncollateralized deposits. We have worked hard to protect all deposits, our shareholders, our customers and our employees. It is our committed goal to keep Home BancShares, Centennial Bank and Happy State Bank in this position,” Allison added.

Financial highlights for the quarter included:

  • Net interest income on a fully taxable equivalent basis was $209.1 million for the three-month period ended June 30, 2023;
  • An $11.6 million increase in interest expense stemming from an $11 million increase in interest expense on deposits – a result of the rising interest rate environment;
  • Non-interest income of $49.5 million for the second quarter of 2023;
  • Total loans receivable were $14.18 billion at June 30, 2023, compared to $14.39 billion at March 31, 2023;
  • Total deposits were $17 billion at June 30, 2023, compared to $17.45 billion at March 31, 2023; and
  • Total assets were $22.13 billion at June 30, 2023, compared to $22.52 billion at March 31, 2023.

“Our asset quality continues to remain strong with improvements from the first quarter in nonperforming loans to total loans, nonperforming assets to total assets and non-accruals. Our disciplined underwriting is a core focus for Centennial Bank, and the proof is certainly in the pudding,” said Tracy French, President and CEO of Centennial Bank.

Home BancShares (NYSE: HOMB) closed trading on Wednesday (July 19) at $24.98 per share. The company’s stock has traded between $19.77 per share and $26.20 per share over the last 52 weeks.

Home BancShares has 76 branches in Arkansas, 78 branches in Florida, 63 branches in Texas, 5 branches in Alabama and one branch in New York City.