We have all read the stories. Best bank in America. Amazingly low Efficiency Ratio.
But what's really going on here?
HOMB claims to have a franchise based on "community banking", a phrase which connotes friendly service, long-term relationships, and bankers that stick to what they know.
Community banks typically grow their loans by wooing customers from "big" or "out of town" banks, which purportedly don't care about service and engage in risky activities.
In HOMB's case, shareholders get the rock bottom Efficiency Ratio, but where is the compelling organic loan/deposit growth?
Instead of practicing community banking, HOMB chases loan growth by using shareholders' capital to pay market clearing prices for specialty loan pools.
And what about the integrity of HOMB's financials? Every quarter is better than the last and an off balance sheet Mystery Entity exists that HOMB refuses to disclose.
But what's really going on here?
HOMB claims to have a franchise based on "community banking", a phrase which connotes friendly service, long-term relationships, and bankers that stick to what they know.
Community banks typically grow their loans by wooing customers from "big" or "out of town" banks, which purportedly don't care about service and engage in risky activities.
In HOMB's case, shareholders get the rock bottom Efficiency Ratio, but where is the compelling organic loan/deposit growth?
Instead of practicing community banking, HOMB chases loan growth by using shareholders' capital to pay market clearing prices for specialty loan pools.
And what about the integrity of HOMB's financials? Every quarter is better than the last and an off balance sheet Mystery Entity exists that HOMB refuses to disclose.
Who Are The Bad Apples?
"This has been a 3-year battle, but Davy and his management team has cleaned out the bad apples in the group, removing the poor managers and poor loan office. From a profitability perspective, the deal has been an absolute HOMB run and has been -- but the challenge has been quality from Day 1. It's not over, but congrats to the team, they've done a great job and come a long way." John W. Allison, Home Bancshares, Inc. (HOMB) Chairman Comments regarding acquisition of Liberty Bank of Arkansas July 20, 2017 |
Why Did Randy Mayor, HOMB's CFO and Director, Abruptly "Retire", Without Notice, After 16 Years?
One day, Mr. Mayor abruptly departs, without notice, after 16 years with the company, purportedly to pursue his "non-banking interests". Really? HOMB's announcement of the departure contains no comment from Mr. Mayor. Instead new CFO Brian Davis is left to comment about the one time 12b-1 fees, and sign SarBox docs. |
"I want to thank Randy for his many years of dedicated service to the Company," said John Allison, Chairman. "We are very grateful for his numerous contributions to the Company's success, his stewardship of our finance department, and his positive influences on our Company culture and employees. I wish him the best of luck in retirement as he focuses his energy on pursuing his non-banking interests and spending time with his family." |
July 8, 2015 Press Release
Update: A Few Months After His Abrupt Departure To Pursue Non-Banking Interests In Retirement, Randy Is Back HOMB
"Late in 2015, we had two former employees rejoin the team. Randy E. Mayor has rejoined as a DFAST consultant"
HOMB's 2015 Annual Report To Shareholders
Why Did HOMB Need To Hire A Former U.S. Attorney To Lead
Centennial Bank's "Trust Department"?
Centennial Bank's "Trust Department"?
Chris Thyer, the former U.S. attorney for the Eastern District of Arkansas, has joined Centennial Bank as a senior vice president in the bank's trust department.
Davy Carter, a regional president for the bank, announced the hire Wednesday. He said Thyer will work closely with the department's manager, Steve Baker, "over the next year as Baker prepares for retirement."
"We are very fortunate for the tremendous leadership that Baker has provided our trust department, which currently manages nearly $500 million in assets," Carter said in a news release. "We will miss him dearly."
Arkansas Business, May 10, 2017