NYSE$HOMB

Home BancShares Inc/AR · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Ended 2021 with record annual profits and a fortress balance sheet.

Home BancShares reported a net income of $73.4 million and diluted earnings per share of $0.45 for the fourth quarter of 2021. The company's strong asset quality and strategic balance sheet positioning contributed to the positive results.

  • Net income for Q4 2021 was $73.4 million, or $0.45 earnings per share.
  • Net interest margin was 3.42% for the three-month period ended December 31, 2021.
  • Total loans receivable were $9.84 billion at December 31, 2021.
  • Non-performing assets to total assets was 0.29% as of December 31, 2021.

Headline financials

Total Revenue

$171M

Previous: $182M-6.0%
EPS (adj)

$0.45

Previous: $0.50-10.0%
Efficiency Ratio

43.8%

Previous: 39.6%+10.5%
Net Interest Margin

3.4%

Previous: 4.0%-14.5%
NPA to Total Assets

0.3%

Previous: 0.5%-39.6%
Common Equity Tier 1

15.4%

Previous: 13.4%+14.9%
Capital Expenditures

$2.22M

Previous: $1.27M+75.3%
Free Cash Flow

$85.7M

Previous: $90.3M-5.1%
Net Income

$73.4M

Previous: $81.8M-10.3%
Operating Income

$93.9M

Previous: $108M-12.8%
Cash & Equivalents

$3.65B

Previous: $1.26B+188.8%
Total Assets

$18.1B

Previous: $16.4B+10.1%
Stock-Based Comp

$2.21M

Previous: $2.17M+1.6%

Revenue & EPS history

Home BancShares · Revenue · Quarterly

$171M

Q4 2021-6%vs Q4 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

The company expects to close the acquisition of Happy Bancshares, Inc. during the first quarter of 2022.

Tailwinds

  • The Company is starting out 2022 with a fortress balance sheet.
  • The Company is poised to pivot in any direction where opportunities arise.
  • The Company continues strong asset quality.
  • The Company determined an additional provision for credit loss was not necessary.
  • The Company received approval for the merger from the Arkansas State Banking Board and the Arkansas State Bank Commissioner as well as the approval of the shareholders of each company in December of 2021.

Headwinds

  • The possibility that the proposed acquisition of Happy does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all.
  • The possibility that such transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events.
  • The risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, ongoing or future effects of the COVID-19 pandemic, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Home and Happy operate.
  • Diversion of management time on acquisition-related issues.
  • Economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment.

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 Q4 2021

Historical avgQ4 2021

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro