Home Bancshares Reports Record Q2 Earnings
by July 18, 2012 5:19 pm 83 views
Home BancShares, Inc. reported a rise in second quarter earnings as its rapid growth strategy paid dividends, but a predicted acquisition has yet to materialize.
The Conway-based bank holding company, parent to Centennial Bank, reported second quarter earnings of $15.5 million, or $0.55 diluted earnings per common share, compared to $12.9 million, or $0.45 diluted earnings per common share, one year ago.
“I am exceptionally proud of our second quarter results, as our company was able to once again boost our quarterly earnings to new highs,” said Home Bancshares Chairman John Allison. “Not only was this significantly the most profitable quarter in the company’s history, but we also reported improvements in our non-performing non-covered loans and assets, record net interest income, plus a 252 basis point improvement in our core efficiency ratio from the second quarter of 2011 to the second quarter of 2012.”
Other key highlights for the quarter included:
- Net interest income of $39.2 million, up from $35.7 million during the second quarter of 2011.
- Non-interest income of $11.1 million of non-interest income compared to $9.1 million for the second quarter of 2011.
- Total non-covered loans were $2.04 billion at June 30, 2012 compared to $1.76 billion at December 31, 2011.
- Total covered loans were $432.4 million at June 30, 201
2 compared to $481.7 million at December 31, 2011.
- Total deposits were $3.29 billion at June 30, 2012 compared to $2.86 billion at December 31, 2011.
- Total assets were $4.06 billion at June 30, 2012 compared to $3.60 billion at December 31, 2011.
CEO Randy Sims said, “The earnings reported during the second quarter 2012 are by far the best ever. The second quarter earnings are $1 million, or 7%, better than the previous record earnings reported for Home BancShares. We are also pleased with once again reporting strong reserves and capital levels. This strong financial position puts us in a favorable position for both FDIC and market acquisition transaction opportunities.”
Last month, Allison told reporters he expected to move on several target banks for acquisition within the next 30 days; however, no transaction has been announced.
The bank's leaders are expected to host a conference call on Thursday morning and analysts are likely to ask for an update on acquisition prospects.
Home Bancshares' stock closed trading Wednesday (July 18) at $31.20 a share. The stock has traded between $20.00 and $31.68 during the last year.