Home BancShares Net Profit Up 26%, Loan Growth Slows

Home BancShares, the parent company of Centennial Bank, posted second quarter net income of $ 79.1 million, up 26% from $ 62.8 million in the same quarter of 2020. The gain, which exceeded the consensus estimate, came in despite a drop of more than 12% in quarterly loan income.

Second-quarter earnings per share hit 48 cents, better than the consensus estimate of 46 cents among analysts following the company. Revenue for the quarter was $ 172.4 million, lower than the $ 173.7 million in the same quarter of 2020 and lower than the consensus estimate of $ 174.17 million.

First-half net profit was $ 170.672 million, well ahead of the $ 63.334 million recorded during the same period in 2020.

“An annualized review of gross income and net income before tax, before provision and (PPNR) shows us that we are on a stable trajectory over the past four years,” said the Chairman of the Board of Home BancShares, John Allison, in the earnings report released early Thursday (July). 15). “Net income for the six-month period ended June 30, 2021 was $ 170.7 million, or $ 1.03 in earnings per share, which is a record for the company. The continued stable performance our team delivers each quarter brings both a sense of pride and comfort in these volatile economic times. “

A combination of monetary stimulus efforts by the Federal Reserve and Congress has reduced demand for consumer loans. Home BancShares recorded a loan decline of $ 579.3 million in the second quarter, with loan income at $ 141.684 million in the quarter, down 12.2% from the same period in 2020. Loan income in the first six months of the year amounted to $ 292.601 million, down 7.7%. from the same period in 2020.

Centennial Bank President and CEO Tracy French said the bank will continue to adhere to its lending principles.

“One of the hardest things we do is maintain our discipline, and while loan growth may seem a bit slow, we also plan to be patient as we have no intention of selling it. future of our business. We will not be the type to seek short-term gains in the market to create long-term problems, ”French noted in the results report.

Below are more stats in the revenue report.
• The bank had $ 17.627 billion in total assets at the end of the second quarter, up from $ 16.895 billion at the end of the second quarter in 2020.

• The bank had $ 13.891 billion in total deposits at the end of the second quarter, up from $ 13.177 billion at the end of the second quarter in 2020.

• Return on assets, a key measure in the banking industry, was 1.81% at the end of the second quarter, compared to 1.55% in the second quarter of 2020.

• Non-performing loans as at June 30, 2021 amounted to $ 22.4 million, $ 31.8 million, $ 380,000, $ 1.6 million and $ 2.7 million in the markets of the Arkansas, Florida, Alabama, Shore Premier Finance and Centennial CFG, respectively, for a total of $ 58.9 million.

The bank holding company has 76 branches in Arkansas, 78 branches in Florida, 5 branches in Alabama and one branch in New York. Bank stocks (NASDAQ: HOMB) closed at $ 23.50 on Wednesday. Since the start of the year, the share price is up 20.4%. Over the past 52 weeks, the stock price has fluctuated from $ 29.76 to $ 14.42.

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