Home BancShares Profit Falls 29% in Q1

Home BancShares Profit Falls 29% in Q1
Home BancShares Chairman & CEO John Allison (Karen E. Segrave)

Home BancShares Inc. of Conway (NYSE: HOMB) on Thursday reported first-quarter net income of $64.9 million, down 29.1% from the $91.6 million profit it reported a year ago. 

The parent company of Centennial Bank said it had earnings of 40 cents per share. Earnings, adjusted for non-recurring gains, came to 37 cents per share.

The results missed Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 39 cents per share.

Chairman & CEO John Allison said record high wholesale prices, rising interest rates, recession fears and global unrest made the quarter "one of the most volatile quarters on record during my business career."

"During this time," he said in a statement, "HOMB has stayed true to our discipline and still delivered solid performance during the quarter. We like how we have positioned ourselves in the market with over $3.5 billion in excess cash, and with rising interest rates, it seems as though we have played the chess game very well so far. We believe the Fed will be forced to continue raising rates at a faster pace in the near term. As a result, we could be poised to start deploying some of the cash in the remainder of the year."

The bank holding company posted revenue of $175.6 million in the period. Its revenue net of interest expense was $161.8 million, exceeding Street forecasts. Three analysts surveyed by Zacks expected $160.7 million.

Total assets were $18.62 billion as of March 31. Total loans receivable were $10.05 billion and deposits were $14.58 billion.

Those figures do not include the acquisition of Happy Bancshares Inc. of Happy, Texas, and its subsidiary, Happy State Bank, which was completed on April 1. Happy had about $6.76 billion in total assets, $3.6 billion in loans, and $5.85 billion in  deposits

Home Bancshares now operates 62 branches in Texas, 76 branches in Arkansas, 78 branches in Florida, five in Alabama and one in New York City.

The Associated Press contributed to this report.

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