Centennial Bank parent company Home BancShares set quarterly records at the end of 2020 for its net income and earnings per share.
According to the company’s latest financial report, Home Bancshares hauled in $81.8 million in the fourth quarter of 2020. This was a $12.5 million, or 17.99 percent, increase from the third quarter net income of $69.3 million. The 2020 fourth quarter net income also exceeded the net income from 2019’s fourth quarter, when the company reported $73.3 million, by $8.5 million.
Home Bancshares also set a quarterly record for earnings per share, which rose to $0.50 per share for the period ending Dec. 31, 2020. This was an increase of 19.05 percent, or $0.08 per share. In the third quarter of 2020, earnings per share totaled $0.42 per share.
The company also saw its total net revenue rise by more than $5 million in the last quarter. In Q4 2020, Home Bancshares had a total revenue of $181.9 million, compared to $176.1 million in Q3 2020. Income for Home Bancshares has steadily risen throughout 2020, reaching $107.7 million after a $2.4 million loss in Q1 2020. In Q2, the company saw its income rebound to $82.1 million and to $90.4 million in Q3.
“While 2020 was dark in many ways, the lights were definitely on at Home BancShares,” chairman and CEO John Allison said in a statement. “Q1 was an anomaly with the implementation of CECL, but it was followed up with record numbers in quarters two, three and four, and for that, I couldn’t be more pleased. Fifty cents earnings per share is a record I’m particularly proud of.”
COVID-19 has various impacts on Home Bancshares and Centennial Bank, particularly with loans and liquidity. According to the financial report, the pandemic has resulted in a “significant amount of excess liquidity in the market.” As a result, the bank saw an increase of $102.3 million in average interest-bearing cash balances in 4Q 2020 compared to the previous quarter.
The bank also had $691.7 million in Paycheck Protection Program (PPP) loans outstanding at the end of the fourth quarter.