NYSE$HOMB

Home BancShares Inc/AR · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Home BancShares delivered strong Q3 results, while shifting into hurricane mode.

Home BancShares, Inc. reported a strong third quarter with a net income of $100.0 million, or $0.50 diluted earnings per share. The quarter was impacted by Hurricane Helene, which led to an increase in the loan loss reserve. Despite the hurricane's impact, the company achieved a 1.74% return on average assets.

  • Net income for Q3 2024 was $100.0 million, or $0.50 diluted earnings per share.
  • The company recorded $18.9 million in credit loss expense, including $16.7 million for an additional hurricane reserve.
  • Net interest margin was 4.28% for the three-month period ended September 30, 2024.
  • Total loans receivable were $14.82 billion at September 30, 2024.

Headline financials

Total Revenue

$258M

Previous: $245M+5.2%
EPS

$0.50

Previous: $0.47+6.4%
Return on Assets

1.7%

No prior period
Return on Equity

10.2%

No prior period
Return on Tangible Equity

16.3%

No prior period
Efficiency Ratio

41.4%

Previous: 45.5%-9.0%
Net Interest Margin

4.3%

Previous: 4.2%+2.1%
Book Value per Share

$19.91

No prior period
Tangible Book Value per Share

$12.67

Previous: $10.90+16.2%
NPA to Total Assets

0.6%

Previous: 0.4%+50.0%
Common Equity Tier 1

14.7%

Previous: 14.0%+5.0%
Capital Expenditures

-$24.3M

Previous: -$6.78M-258.1%
Free Cash Flow

$75.8M

Previous: $91.7M-17.4%
Net Income

$100M

Previous: $98.5M+1.6%
Operating Income

$49.2M

Previous: $76.8M-35.9%
Gross Profit

$238M

Previous: $243M-1.9%
Cash & Equivalents

$1.02B

Previous: $488M+108.5%
Total Assets

$22.8B

Previous: $22B+4.0%
Stock-Based Comp

$2.5M

Previous: $2.24M+11.6%

Revenue & EPS history

Home BancShares · Revenue · Quarterly

$258M

Q3 2024+5.2%vs Q3 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

The company's performance was impacted by Hurricane Helene, which required an increase in loan loss reserves. The company expects to navigate the challenges posed by the hurricane and maintain a strong balance sheet.

Tailwinds

  • Strong revenue generation
  • Solid pre-tax, pre-provision net income (PPNR)
  • Adequate net available internal liquidity of $2.50 billion
  • Access to significant external liquidity, totaling $3.15 billion
  • High common equity tier 1 capital ratio of 14.7%

Headwinds

  • Impact of Hurricane Helene on earnings
  • Increase in credit loss expense due to hurricane reserve
  • Potential increase in interest expense due to uninsured deposits
  • Slight increase in non-performing loans to total loans to 0.68%
  • Decrease in total deposits to $16.71 billion

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.2%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+2.5%

Avg return

30 days after

48%

32 / 66 earnings

Positive

+9.7%

Q1 2020

Best reaction

-6.9%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.4%-2.9%-7.3%
Q4 2025+1.0%-0.4%+2.6%
Q3 2025-3.4%-1.0%-0.6%
Q2 2025-2.1%-0.3%+3.6%
Q1 2025+1.8%+4.8%+12.9%
Q4 2024+3.4%+6.8%+5.3%
Q3 2024-0.7%-2.5%+13.5%
Q2 2024+0.1%+3.8%-0.8%
Q1 2024+7.0%+10.1%+10.2%
Q4 2023+6.6%+7.3%+2.5%
Q3 2023-2.8%-4.6%+5.4%
Q2 2023-5.8%-7.8%-9.6%
Q1 2023+0.0%-3.2%-1.7%
Q4 2022-0.4%-0.4%+9.1%
Q3 2022-4.7%-2.4%-0.6%
Q2 2022-0.9%+1.3%+11.4%
Q1 2022-4.5%-6.5%-11.6%
Q4 2021-3.8%+1.5%-6.0%
Q3 2021-0.8%-1.9%+1.6%
Q2 2021-4.9%-6.3%-5.9%
Q1 2021-0.0%-2.0%+4.0%
Q4 2020+4.1%+2.4%+10.5%
Q3 2020-1.1%-0.7%+15.3%
Q2 2020+2.2%+5.4%+11.0%
Q1 2020+9.7%+3.5%+4.8%
Q4 2019+6.6%+3.9%+3.0%
Q3 2019-1.0%+0.7%-2.0%
Q2 2019+2.0%+3.3%-4.1%
Q1 2019-2.0%+0.8%-4.2%
Q4 2018-3.0%-2.0%+6.7%
Q3 2018-6.9%-9.0%-5.1%
Q2 2018+0.1%-0.7%+2.5%
Q1 2018+3.1%+6.9%+7.0%
Q4 2017+0.3%+6.4%+2.1%
Q3 2017-5.4%-10.7%-14.0%
Q2 2017-2.0%+3.9%-6.0%
Q1 2017+0.0%+1.8%-5.3%
Q4 2016-0.4%+1.9%+6.5%
Q3 2016+1.5%+3.7%+27.2%
Q2 2016+1.8%+0.9%+6.9%
Q1 2016+0.8%
Q4 2015-3.7%
Q3 2015+4.2%
Q2 2015+1.6%
Q1 2015-3.7%
Q4 2014+1.1%
Q3 2014+4.0%
Q2 2014-2.4%
Q1 2014+3.4%
Q4 2013+1.5%
Q3 2013+5.0%
Q2 2013-1.3%
Q1 2013+3.7%
Q4 2012+1.2%
Q3 2012+4.9%
Q2 2012+0.7%
Q1 2011-0.7%
Q1 2012-1.0%
Q4 2009+0.2%
Q4 2011+0.2%
Q3 2011-2.3%
Q3 2010-2.3%
Q2 2011-0.5%
Q2 2010-0.5%
Q4 2010-0.5%
Q1 2010+7.0%

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