Home BancShares, Inc. (HOMB) has reported a 13.10 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $46.86 million, or $0.33 a share in the quarter, compared with $41.43 million, or $0.29 a share for the same period last year.
Revenue during the quarter grew 13.91 percent to $127.37 million from $111.82 million in the previous year period. Net interest income for the quarter rose 6.89 percent over the prior year period to $104.82 million. Non-interest income for the quarter rose 36.18 percent over the last year period to $26.47 million.
Home BancShares, Inc. has made provision of $3.91 million for loan losses during the quarter, down 31.06 percent from $5.68 million in the same period last year.
Efficiency ratio for the quarter deteriorated to 40.76 percent from 37.50 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"We are pleased with reporting our twenty-fourth consecutive most profitable quarter in the Company's history, when excluding the $4.5 million of reduced provision for loan losses as a result of a significant loan recovery offset by $433,000 of merger expenses associated with the GHI and Commerce acquisitions from the fourth quarter of 2016, record net interest income for the first quarter of 2017 and improvements in our non-performing assets," said Randy Sims, Home BancShares, Inc. chief executive officer. "Our team continues to do an excellent job of controlling expenses. We have been able to maintain a strong core efficiency ratio of 36.96%, even though we added nine branch locations with the GHI and Commerce transactions in the first quarter of 2017."
Assets outpace liabilities growth
Total assets stood at $10,717.47 million as on Mar. 31, 2017, up 14.05 percent compared with $9,397.45 million on Mar. 31, 2016. On the other hand, total liabilities stood at $9,275.90 million as on Mar. 31, 2017, up 13.54 percent from $8,169.67 million on Mar. 31, 2016.
Loans outpace deposit growth
Net loans stood at $7,769.33 million as on Mar. 31, 2017, up 14.59 percent compared with $6,779.91 million on Mar. 31, 2016. Deposits stood at $7,567.21 million as on Mar. 31, 2017, up 15.05 percent compared with $6,577.52 million on Mar. 31, 2016.
Loans to deposits ratio was 103.73 percent for the quarter, down from 104.18 percent for the previous year quarter.
Investments stood at $1,527.19 million as on Mar. 31, 2017, up 1.35 percent or $20.37 million from year-ago. Shareholders equity stood at $1,441.57 million as on Mar. 31, 2017, up 17.41 percent or $213.79 million from year-ago.
Return on average assets moved up 7 basis points to 1.86 percent in the quarter from 1.79 percent in the last year period. At the same time, return on average equity increased 8 basis points to 13.85 percent in the quarter from 13.77 percent in the last year period.
Nonperforming assets moved down 2.84 percent or $2.24 million to $76.52 million on Mar. 31, 2017 from $78.76 million on Mar. 31, 2016. Meanwhile, nonperforming assets to total assets was 0.71 percent in the quarter, down from 0.84 percent in the last year period.
Equity to assets ratio was 13.45 percent for the quarter, up from 13.07 percent for the previous year quarter. Book value per share was $10.05 for the quarter, up 14.86 percent or $1.30 compared to $8.75 for the same period last year.
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