Simmons, Home Bancshares post income gains

Editor’s note: Roby Brock, with our content partner Talk Business, wrote this report. He can be reached at [email protected]

Arkansas-based banks continue post positive numbers, with Conway-based Home Bancshares reporting record quarterly income.

Home Bancshares and Pine Bluff-based Simmons First National posted second quarter earnings reports on Thursday (July 21).

HOME BANCSHARES
On the strength of recent acquisitions, Home Bancshares posted record second quarter profits of $13.5 million.

The Conway-based bank holding company, parent firm to Centennial Bank, announced second quarter earnings of $13.5 million, or $0.45 diluted earnings per common share, compared to $9.0 million, or $0.29 diluted earnings per common share for the same quarter in 2010.

The improvement in earnings is 51% higher than one year ago and it beat first quarter results when Home Bancshares recorded earnings of $12.7 million.

Recently, Home Bancshares announced it was exiting the federal government’s TARP (Troubled Asset Relief Program), which it entered during the economic crisis of late 2008 and early 2009. That capitalization led the bank on an acquisition spree as it added banks to its portfolio throughout Florida.

Bank chairman John Allison suggested that the bank buyout opportunities aren’t over.

"The second quarter of 2011 is the most profitable quarter in the history of the company," Allison in the earnings report. "In addition, we have continued to show consistency in our strong reserves as well as keeping our capital levels considerably above the regulators’ capital requirements. This leaves us well positioned to take advantage of opportunistic FDIC deals as they become available."

Shares of the bank holding company (NASDAQ: HOMB) were up more than 25 cents in early morning trading. During the past 52 weeks, the share price has ranged from a $25 high to a $19.88 low.

SIMMONS FIRST
Blaming most of the results on soft loan demand, Simmons First National Bank Corp. announced quarterly net income of $6.7 million, a 15% slip from last year’s second quarter results.

The Pine Bluff-based bank noted several smaller one-time items that impacted results, but the bottom line resulted in diluted earnings per share of $0.39 for the quarter ended June 30, 2011 compared to diluted earnings per share of $0.46 one year ago.

"While we remain disappointed with the lack of loan demand throughout our markets, it was expected based on the economy and it is likely to continue throughout 2011. Considering the negative impact on non-interest income created by regulatory and legislative actions, coupled with the negative impact of historically low interest rates on margins, we are pleased with our second quarter earnings performance," said J. Thomas May, Simmons First Chairman and CEO.

Total assets for Simmons First were $3.3 billion at June 30, 2011, an increase of 7.9% from $3.0 billion at June 30, 2010.

Shares of Simmons First (NASDAQ: SFNC) were up more than 20 cents in early morning trading. During the past 52 weeks, the share price has ranged from a $30.16 high to a $24.18 low.