Home BancShares, Inc. (HOMB) Misses Q3 EPS by 4c

Home BancShares, Inc. (NASDAQ: HOMB) reported Q3 EPS of $0.41, $0.04 worse than the analyst estimate of $0.45.

n July 17, 2014, the Company completed its acquisition of Traditions. As of acquisition date, Traditions had $297.6 million in total assets, $241.6 million in loans after $8.5 million of loan discounts, and $267.3 million in deposits. From June 30, 2014 to September 30, 2014, the Company had $449.9 million growth in non-covered loans. Excluding the loans acquired from Traditions, the Company produced $208.3 million of organic non-covered loan growth.

Because acquisitions are growth and capital management strategies, earnings excluding amortization of intangibles after-tax are useful in evaluating the Company. Diluted earnings per share excluding intangible amortization for the third quarter of 2014 was $0.42 compared to $0.33 diluted earnings per share excluding intangible amortization for the same period in 2013.

"I am eager to report the Company has achieved $208.3 million in organic non-covered loan growth since the second quarter 2014," said John Allison, Chairman. "At this point, we know there is still an ongoing need for organic loan growth and are diligently pursuing the opportunities set before us. Additionally, on September 26, 2014, we completed the systems conversion of Traditions and now can speed up the process of improving the financial metrics to maximize returns to our shareholders."

Randy Sims, Chief Executive Officer, added, "We are pleased to report our diluted earnings per share improved eight cents, during the quarter just ended when compared to the third quarter of 2013. Excluding merger expenses, we have again, for the fourteenth consecutive quarter, reported the most profitable quarter in the Company's history with a diluted earnings per share excluding merger expenses of $0.45 per share. We were also happy to be reporting a 41.88% core efficiency ratio and 1.69% return on average assets excluding merger expenses for the third quarter of 2014."

For earnings history and earnings-related data on Home BancShares, Inc. (HOMB) click here.

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