Home Bancshares, the parent company of Centennial Bank of Conway, Ark., announced Thursday quarterly earnings of $13 million, down 23% from the same period in 2012.
Its earnings per share fell 37%, to 19 cents, missing by 7 cents the estimates of analysts polled by Bloomberg.
The drag on earning was directly attributed to the $17.3 million in fourth-quarter expenses related to Home Bancshares $280 million cash and stock acquisition of Liberty Bancshares. If not for the merger expenses, it would have earned 37 cents per share in the quarter.
For the year, the $6.8 billion-sset Home Bancshares achieved record net income of $66.5 million, up 5.5% from 2012.
Net interest Income for the fourth quarter of 2013 increased 62.4%, to $67.1 million, from the fourth quarter of 2012. Net interest margin was 5.09% for the quarter, an increase in 23 basis points year over year.
"During the year we have been focused on our efficiency ratio and net interest margin. These efforts have paid off as we are pleased to report an impressive 45.49% core efficiency ratio and 5.19% net interest margin for the year," Home Bancshares Chief Executive Randy Sims said in a news release.
Total noninterest income for the fourth quarter was $12.2 million, down 25% year over year. Total noninterest expense nearly doubled, to $54.9 million, due largely to the merger costs.