Arkansas bank doubles loan loss reserves from Florida storms to $33.4M

The Arkansas-based parent company of Centennial Bank, which has a large presence in Florida and on the west coast of the state, has doubled its initial portfolio of reserves for loan losses in place for the past summer’s hurricanes, to now $33.4 million.

The company, Conway, Arkansas-based Home BancShares Inc., announced the second round of reserves, for $16.7 million, in a Tuesday statement. It follows an Oct. 11 announcement of the same amount, which was geared toward Hurricane Helene.

“Out of an abundance of caution, HOMB has decided to make an additional $16.7 million reserve following the second Florida hurricane,” Home BancShares Chairman John Allison says in the statement. “The two hurricanes spanned across the third and fourth quarter and the amount of time it takes for customers to settle with insurance will no doubt increase, with two back-to-back events.”

The bank, Allison adds, has some $110 million currently on deferral as a result of the two hurricanes and the latest move “is a prudent and predictable course of action.”

Centennial Bank has 78 branches in Florida, 76 in Arkansas, 58 in Texas, five in Alabama and one in New York City.The Company currently has 76 branches in Arkansas, 78 branches in Florida, 58 branches in Texas, 5 branches in Alabama and one branch in New York City. It was founded in 1998 and now has $22.84 billion in assets.