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Home BancShares in Conway, Ark., has found another opportunity in the failure of Doral Bank.
April 2 -
Umpqua Holdings in Portland, Ore., posted lower profit from a quarter earlier, largely reflecting a decline in net interest income.
April 15 -
More than 70 banks are set to hit their seventh anniversary this year, crossing a threshold where they will have reduced regulatory scrutiny and relaxed capital ratios. While many are excited about the potential to growth, they are aiming to do so carefully.
April 14
Home BancShares in Conway, Ark., reported higher first-quarter profit and assets after it acquired branches and loans from the failed Doral Bank in Puerto Rico.
First-quarter profit rose 13.8% to $31.1 million, from a year earlier. Earnings per share of 46 cents missed the 47.8-cent average estimate of analysts polled by Bloomberg. After excluding several one-time items, earnings were 47 cents per share.
Total assets at the parent company of Centennial Bank rose 11% to $7.5 billion.
Home acquired assets from Doral Bank in two separate transactions. It first
Earlier this month, Home acquired $289 million of former Doral commercial real estate loans from J.C. Flowers & Co., a private-equity firm. J.C. Flowers had acquired the loans during Doral's failure proceedings.
Net interest income increased 2.7% to $79.1 million. Noninterest income rose 20% to $14.7 million, mainly on a $1.6 million one-time gain stemming from the company's purchase of Doral's operations in the Florida Panhandle.
Noninterest expense rose 3% to $40.7 million on higher merger-related expenses. The efficiency ratio fell 66 basis points to 41.41%, as it closed one Florida branch during the quarter. Home BancShares plans to close two more locations this quarter.
Also in the first quarter, Home moved $56.3 million in commercial real estate and commercial-and-industrial loans to non-covered status, after five-year loss-share agreements expired. The loans were acquired from two failed banks, Old Southern Bank in Orlando, Fla., and Key West Bank in Key West, Fla.