The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Home in Ark. keen on failed banks, lukewarm on other deals

Though unsuccessful in an effort to buy Silicon Valley Bank and Signature Bank, Johnny Allison is still interested in bidding on other failed banks.

Allison, president and CEO of Home BancShares in Conway, Ark., confirmed that the $22.5 billion-asset company vied for the failed banks but fell short to New York Community Bancorp and First Citizens BancShares.

Home is also interested in buying what is left of the bridge banks created by the Federal Deposit Insurance Corp.

“We were not successful, but there’s still some stuff left, so we’ll see about that — see if there’s something there that makes sense for us,” Allison said during a conference call to discuss quarterly results.

“Based on what we saw, what happened in the marketplace, I also think there might be some opportunities on the buy side maybe to pick up some assets over a period of time,” Allison added.

Home was an aggressive buyer of failed banks during the last financial crisis, successfully bidding on seven banks between March 2010 and November 2012.

Allison, known to doggedly go after traditional acquisitions as well, said he is not as excited about those deals under current circumstances.

“I’m struggling [with] why I’d want to do that and why I’d want to take your mess that you’ve created and put on my balance sheet and put my balance sheet that is not stressed under any conditions,” Allison said.

Home’s net income rose by 59% from a year earlier, to $103 million, reflecting its April 2022 purchase of Happy Bancshares. Profit fell 11% from the fourth quarter.

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