Home Bancshares, parent company of Centennial Bank, reported a record first quarter profit on Thursday (April 17), and Simmons First National Corp. had an up-and-down quarter depending on how you view their latest financial results.
The Conway-based financial institution posted profits of $27.3 million, up from $17.5 million one year ago. Home Bancshares acquired Jonesboro-based Liberty Bancshares last year for approximately $235 million.
“The company has achieved yet another historically record quarter during the first quarter of 2014,” said Home Bancshares Chairman John Allison. “Our team continues to be dedicated on working toward recognizing the anticipated cost savings as quickly as possible from last quarter’s acquisition of Liberty. I am looking forward to watching our team succeed in this process and pass along the results to our deserving shareholders.”
Home Bancshares reported that it saw improvements in several of its loan pools associated with acquisitions made with the help of the FDIC. Home Bancshares went on an acquisition tear in the post-recession period buying several Florida banks that were financially troubled.
“During our first quarter 2014 impairment testing, four FDIC loss sharing pools evaluated by the company were determined to have a material projected credit improvement. As a result of this improvement, the company will recognize approximately $11.4 million as an adjustment to yield over the weighted average life of the loans ($2.0 million was recognized during the first quarter of 2014),” Home Bancshares disclosed in its earnings statement.
Other financial highlights for the quarter included:
• Net interest income for the first quarter of 2014 increased 73.6% to $77 million from $44.3 million during the first quarter of 2013.
• The company reported $12.2 million of non-interest income for the first quarter of 2014, compared to $9 million for the first quarter of 2013.
• Total non-covered loans were $4.13 billion at March 31, 2014 compared to $4.19 billion at Dec. 31, 2013.
• Total covered loans were $270.6 million at March 31, 2014 compared to $282.5 million at Dec. 31, 2013.
• Total deposits were $5.34 billion at March 31, 2014 compared to $5.39 billion at Dec. 31, 2013.
• Total assets were $6.78 billion at March 31, 2014 compared to $6.81 billion at Dec. 31, 2013.
Home Bancshares also announced plans to close or merge four Arkansas and two Florida locations during the second quarter of 2014. The company has 88 branches in Arkansas, 52 branches in Florida and 7 branches in Alabama.
Shares of Home Bancshares (NASDAQ: HOMB) opened trading on Thursday at $33.11. The company’s stock has traded between $18.88 and $38.98 during the past 52 weeks.
Pine Bluff-based Simmons First posted first quarter net income of $4.35 million compared to $5.94 million one year ago.
However after settling one-time charges associated with its acquisition of Metropolitan National Bank, Simmons First’s core earnings were $7.48 million for the quarter compared to $6.08 million one year ago.
Core earnings exclude one-time charges such as merger-related expense, branch downsizing, and tax effects.
“We are pleased with the core earnings results for the first quarter,” said Simmons First CEO George Makris. “As a result of our fourth quarter acquisition of Metropolitan National Bank, our recently announced acquisition of Delta Trust & Bank, other possible acquisitions and efficiency initiatives, we have and will continue to recognize one-time revenue and expense items which may skew our short-term business results but provide long-term performance benefits. Our focus continues to be improvement in core operating income.”
Financial highlights for the quarter ended March 31, 2014 included:
• Total loans of $2.4 billion, an increase of $518 million, or 28.0%, compared to the same period in 2013.
• Total deposits were $3.7 billion, an increase of $814 million, or 28.2%, compared to the same period in 2013.
• Net interest income for the first quarter of 2014 of $41.5 million, an increase of $11.5 million, or 38.1%, from the same period of 2013.
• Non-interest income for the first quarter of $9.2 million, a decrease of $2.1 million, compared to the first quarter of 2013.
Simmons First (NASDAQ: SFNC) opened trading on Thursday at $35.23 per share. The bank’s stock has traded between $23.57 and $39.05 per share during the past year.