Home BancShares Inc. of Conway on Thursday again reported record quarterly earnings, with net income of $76 million, up 52 percent from the same quarter last year.
The publicly traded (Nasdaq: HOMB) part company of Centennial Bank also touted record quarterly loan originations — $958 million — as it works to add a new line of loans to its portfolio with the acquisition of Shore Premier Finance, announced earlier this month. Meanwhile, total assets grew to $14.92 billion as of June 30, compared to $14.45 billion at Dec. 31.
"I have no complaints about our results for this quarter. They were outstanding," John Allison, Home BancShares' chairman, said in a news release.
Allison noted that average assets have grown $3.77 billion, or 36 percent, and earnings per share increased 9 cents, or 26 percent, compared to previous year.
"In addition, the loan portfolio increased $572.2 million, or 5.5%, through $198.8 million of organic loan growth and the acquisition of Shore Premier Finance this quarter," Allison said.
The company reported an efficiency ratio of 36.74 percent, down from 37.83 percent in the first quarter and down from 37.48 percent in the same quarter last year.
From March 31 to June 30, the company saw $198.8 million in organic loan growth. Centennial CFG produced $140.3 million of organic loan growth and had loans of $1.65 billion at June 30. The company's legacy footprint produced about 81 percent of the $958 million in loan originations during the second quarter of 2018.
On July 2, Home BancShares announced it had acquired Shore Premier Finance, a division of Union Bank & Trust of Richmond, Virginia, in a deal that included $374.5 million in cash and 1.25 million shares of Home BancShares stock.
Shore Premier Finance provides direct consumer financing to U.S. Coast Guard-registered high-end sail and power boats. The company also provides inventory floor plan lines of credit to marine dealers. The company has about $384.2 million in total assets, including $383.4 million in total loans.
During the quarter, the company opened a branch in Jonesboro. As part of its acquisition of Shore Premier Finance, the company plans to open a new loan production office, in Chesapeake, Virginia. The company has branches in Arkansas, Florida, Alabama and New York City.