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CONWAY, Ark., Oct. 17, 2013 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (Nasdaq:HOMB), parent company of Centennial Bank, today announced third quarter net income of $18.4 million, or $0.33 diluted earnings per common share, compared to $16.1 million of net income, or $0.28 diluted earnings per common share (split adjusted) for the same quarter in 2012. The Company increased its third quarter earnings by $2.3 million or 14.1% for the three months ended September 30, 2013 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 third quarter of 2013 was $0.33 compared to $0.29 diluted earnings per common share excluding intangible amortization (split adjusted) for the same period in 2012.
"Home BancShares has achieved yet another record quarter for net income, making it the tenth consecutive quarter to meet this outstanding accomplishment," said John Allison, Chairman. "Our strong capital levels continue to remain considerably above the regulators' capital requirements, while our strong reserves have placed us in a position to partake in an opportunity like the upcoming Liberty Bank market acquisition. This game-changing merger of these two similarly sized Arkansas-based companies with comparable cultures and history makes us confidently optimistic of the Company's continued bright future when Liberty gets on board."
Randy Sims, Chief Executive Officer, added, "The $704,000 or 4.0% increase from our previously reported record earnings is truly another outstanding achievement. The Company also reported exceptional results for return on average assets of 1.80%, net interest margin of 5.41% and efficiency ratio of 45.67%."
Net interest income for the third quarter of 2013 increased 20.0% to $46.4 million from $38.6 million during the third quarter of 2012. For the third quarter of 2013, the effective yield on non-covered loans and covered loans was 5.88% and 12.76%, respectively. Net interest margin, on a fully taxable equivalent basis, was 5.41% for the quarter just ended compared to 4.65% in the third quarter of 2012, an increase of 76 basis points. The Company was able to expand its net interest margin because of its ability to improve pricing on interest bearing deposits combined with additional yield on FDIC loss sharing loans which more than offset the lower interest rates on newly originated loans in the loan portfolio during this historically low rate environment.