Home BancShares, Inc. (NASDAQ GS: HOMB), parent company of Centennial Bank, on Thursday announced second quarter earnings of $15.5 million, or $0.55 diluted earnings per common share, compared to $12.9 million of net income available to common shareholders, or $0.45 diluted earnings per common share for the same quarter in 2011.
The company increased its second quarter net income by $2.6 million or 20.3% for the three months ended June 30, 2012 compared to the same period of the previous year.
Because acquisitions are growth and capital management strategies, earnings excluding amortization of intangibles after-tax are useful in evaluating the Company.
Diluted earnings per common share excluding intangible amortization for the second quarter of 2012 was $0.57 compared to $0.46 diluted earnings per common share excluding intangible amortization for the same period in 2011.
“I am exceptionally proud of our second quarter results, as our company was able to once again boost our quarterly earnings to new highs,” said John Allison, Chairman.
“Not only was this significantly the most profitable quarter in the company’s history, but we also reported improvements in our non-performing non-covered loans and assets, record net interest income, plus a 252 basis point improvement in our core efficiency ratio from the second quarter of 2011 to the second quarter of 2012.”
Randy Sims, Chief Executive Officer, added, “The earnings reported during the second quarter 2012 are by far the best ever. The second quarter earnings are $1 million or 7% better than the previous record earnings reported for Home BancShares. We are also pleased with once again reporting strong reserves and capital levels. This strong financial position puts us in a favorable position for both FDIC and market acquisition transaction opportunities.”
The company is evaluating opportunities but has no firm commitments for additional purchase of branch locations.
During the first part of July, the Company closed two branches acquired in the Vision acquisition.
These branch closures were completed to eliminate repetitive branches and maximize profitability from the Vision transaction, Sims said.
After these closures the company now has 47 branches in Arkansas, 46 branches in Florida and 8 branches in Alabama.