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Home BancShares's Q3 adjusted earnings grow 72.8% over hurricane-hit Q3'17

Conway, Ark.-based Home BancShares Inc.'s third-quarter adjusted earnings rose 72.8% from those reported in the third quarter of 2017, which was severely impacted by Hurricane Irma.

Adjusted earnings for the quarter were $80.3 million, or 46 cents per share, compared to $46.4 million, or 32 cents per share, in the year-ago quarter.

The S&P Global Market Intelligence consensus normalized EPS estimate for the third quarter was 45 cents.

On a GAAP basis, net income applicable to common shares was $80.3 million, or 46 cents per share, for the third quarter, an increase from net income of $14.8 million, or 10 cents per share, in the same quarter of 2017.

Home BancShares' third-quarter 2017 earnings included a hurricane reserve resulting from Hurricane Irma and the company had accrued $33.4 million of pretax hurricane expenses in that period. Excluding the impact of the catastrophe, the $18.2 million of merger expenses associated with the Stonegate Bank acquisition and $20.0 million tax-effect of the adjustments, adjusted third-quarter 2017 earnings were $46.4 million. Consequently, the most recent quarter's earnings of $80.3 million represent an increase of $33.8 million, or 72.8%, from the third-quarter 2017 adjusted earnings, the company said.

Total loans receivable rose 5% compared to the same period in 2017 and fell 1% from the linked quarter to $10.83 billion.

Total deposits rose 2% year over year and lowered 1% from the second quarter to $10.62 billion.

Net interest margin, on a fully taxable equivalent basis, for the most recent quarter was 4.46%, compared to 4.47% for the second quarter and 4.40% for the third quarter of 2017.

The company did not record a provision for loan loss in the third quarter, as compared to $1.6 million, excluding the $33.4 million of hurricane expense, recorded in the prior-year quarter.

Net charge-offs were $1.3 million in the third quarter, compared to net charge-offs of $3.5 million in the year-ago quarter.

Non-interest income for the third quarter was $25.8 million, compared to $21.5 million in the year-ago quarter.

At the end of the third quarter, nonperforming assets totaled $70.4 million, compared to $74.6 million in the linked quarter and $85.7 million a year ago.

During the fourth quarter, the bank plans to open a loan production office in Dallas.