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Home BancShares 3Q Profit Up 31 Percent to $36M

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Home BancShares Inc. of Conway on Thursday reported third-quarter profit of $35.7 million, up 30.6 percent from the same quarter last year.

Home BancShares (Nasdaq: HOMB), the parent company of Centennial Bank, said diluted earnings per share reached 52 cents, up from 41 cents in the same quarter last year.

Excluding the $474,000 of merger expenses associated with its recently completed acquisition of Florida Business BancGroup Inc., diluted earnings per share was 53 cents.

The company also announced $350.8 million in quarterly organic non-covered loan growth during the third quarter and a core efficiency ratio of 39.3 percent.

"In the last six months, there has been a $906.1 million increase in our total loan portfolio," Chairman Johnny Allison said in a news release. "By maintaining a strong capital position, Home BancShares was adequately prepared to support loan growth when the opportunities presented themselves. 

"We will continue seeking growth opportunities in areas within and surrounding our existing footprint while supporting additional loan growth in our legacy organization so we can enhance the franchise value of HOMB and maximize returns to our shareholders," he said.

The company reported third-quarter net interest income up 15.9 percent to $91.1 million. The effective yield on non-covered loans and covered loans was 5.77 percent and 19.04 percent, respectively. And net interest margin, on a fully taxable equivalent basis, was 5.03 percent for the quarter. 

Third-quarter non-interest income rose 52.7 percent to $16.5 million, including $6.6 million from other service charges and fees, $6.3 million from service charges on deposits accounts and $3.1 million from mortgage lending income. 

Home BancShares said it closed two branches Arkansas, one in Alabama and two in Florida during the third quarter. It plans to close one in Arkansas and three in Florida during the fourth quarter. The company has 80 branches in Arkansas, 58 branches in Florida, 6 branches in Alabama and a loan production office in New York City. 


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