Home BancShares Reports Record Annual, Quarterly Net Income

by Arkansas Business Staff  on Thursday, Jan. 17, 2013 8:27 am  

Home BancShares Inc. of Conway on Thursday reported record net income for the year and most recent quarterly.

The public traded bank company (Nasdaq: HOMB), the parent company of Centennial Bank, said net income for the full year reached $63 million, up from $54.7 million for the year ended 2011. Diluted earnings per share for the year ended was $2.23, up 20 percent from $1.85 in the previous year.

For the fourth quarter of 2012, the company recorded net income of $16.9 million, or 60 cents diluted earnings per common share, compared to $14.2 million, or 50 cents diluted earnings per common share for the same quarter in 2011, an increase of 10 cents per share or 20 percent.

"The record net income reported for 2012 is an exceptional achievement for our Company," Chairman John Allison said in the earnings announcement. "The hard work this year to expand earnings was successful. Not only did we reach annual record earnings during 2012, but we also achieved record earnings each quarter consecutively during the year.

"Throughout the year, we continued to keep our traditionally strong capital levels considerably above the regulators' capital requirements," Allison said. "It is possible, therefore, to remain in a position to benefit from opportunistic deals as they are presented."

In the fourth quarter, Home BancShares improved both its net interest income (by 16.9 percent to $41.3 million) and its non-interest income (by 32 percent, to $16.2 million). Part of the non-interest income was $463,000 in dividends from an investment in Diamond State Ventures, the venture capital fund that is part of Arkansas Capital Corp. Group of Little Rock.

The company, which has been on a three-year acquisition spree along the Gulf Coast, closed one Centennial branch each in Florida and Alabama in the fourth quarter. Already this month it closed a Centennial branch in Rison, leaving the Cleveland County seat to the Bank of Rison and FBT Bank & Trust (the recently renamed Fordyce Bank & Trust).

Centennial has 46 branchs in Arkansas, seven in Alabama and 54 in Florida, but it expects to close three or four branches in the Tallahassee, Fla., area in the second quarter of this year, according to the announcement.



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