Shares of Home BancShares Inc. fell Friday after the Conway, Ark., company said it expects to report a loss of $9.4 million for the fourth quarter, primarily because of the weak Florida housing market.

The $2.3 billion-asset Home BancShares, which earned $13.2 million in the third quarter, said late Thursday that its capital ratios remain strong, despite a $17.1 million earnings hit from a loan-loss provision increase and several charges.

The company expects to report an 86% increase in nonperforming loans from the third quarter, to $29.9 million; a $20.1 million loan-loss provision; and $2.4 million of writedowns related to other real estate owned.

Home BancShares also said it would record $1.8 million of expenses related to its bank charter consolidation and a $3.9 million impairment charge on two trust-preferred securities.

It said it received approval for $50 million of capital from the Treasury Department's Capital Purchase Program that would increase its total risk-based capital ratio by about 2 percentage points, to 16.2%

In a news release late Thursday, chairman and chief executive John W. Allison said the company had been building "strong capital reserves for tough economic times such as these. The strength of our balance sheet afforded us the ability to to take this head on, rather than attempting to deal with the writedowns or provisioning in a piecemeal fashion."

Shares of Home BancShares declined 10.8% Friday, to close at $23.19.

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