Home BancShares 3Q Net Income, Another Record, Up 14 Percent

by Lance Turner  on Thursday, Oct. 17, 2013 8:17 am  

Home BancShares Inc. of Conway, the parent company of Centennial Bank, said Thursday that third-quarter net income reached another quarterly record at $18.4 million, up 14 percent from the same quarter last year.

The company (Nasdaq: HOMB), which expects to close this month on a $280 million deal to acquire Liberty Bancshares Inc. of Jonesboro, reported diluted earnings per share of 33 cents, up from 28 cents in the same quarter last year.

Diluted earnings per common share excluding intangible amortization was also 33 cents, up from 29 cents in the same quarter last year.

"Home BancShares has achieved yet another record quarter for net income, making it the 10th consecutive quarter to meet this outstanding accomplishment," Johnny Allison, company chairman, said in a news release.

"Our strong capital levels continue to remain considerably above the regulators' capital requirements, while our strong reserves have placed us in a position to partake in an opportunity like the upcoming Liberty Bank market acquisition. This game-changing merger of these two similarly sized Arkansas-based companies with comparable cultures and history makes us confidently optimistic of the Company's continued bright future when Liberty gets on board."

Home BancShares is expected to close on the Liberty deal on Oct. 24, the day after Home BancShares and Liberty Bank hold respective shareholder meetings to approve the deal.

The company also reported third-quarter net interest income of $46.4 million, up 20 percent from $38.6 million during the third quarter of 2012. It said the effective yield on non-covered loans and covered loans was 5.88 percent and 12.76 percent, respectively. And net interest margin, on a fully taxable equivalent basis, was 5.41 percent, up 76 basis points from the same time last year.

Non-interest income reached $9.3 million in the quarter, down from $10.6 million last year. Expenses related to its acquisition of Heritage Bank of Florida and Premier Bank contributed to non-interest expense of $26.7 million during the quarter. 



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