Home Bancshares, Inc. (Conway, AR) (HOMB) Bundle
A Brief History of Home Bancshares, Inc.
Home Bancshares, Inc. (HOMB), headquartered in Conway, Arkansas, has established itself as a prominent player in the banking sector since its inception in 1998. The company has expanded its operations significantly through both organic growth and strategic acquisitions.
Company Growth and Acquisitions
Initially focused on community banking, Home Bancshares has grown through a series of acquisitions. Notable acquisitions include:
- In 2014, the acquisition of First State Bank of Florida, marking its entry into the Florida market.
- In 2016, the acquisition of Centennial Bank, furthering its footprint in Arkansas and Florida.
- In 2021, the acquisition of Happy State Bank, which expanded its presence in Texas.
Financial Performance as of 2024
As of September 30, 2024, Home Bancshares reported significant financial metrics:
| Financial Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Total Assets | $22,823,117,000 | $21,950,638,000 |
| Loans Receivable | $14,823,979,000 | $14,271,833,000 |
| Total Deposits | $16,705,710,000 | $16,518,745,000 |
| Total Stockholders’ Equity | $3,959,789,000 | $3,654,874,000 |
| Net Income | $100,038,000 | $98,453,000 |
| Earnings per Share (Diluted) | $0.50 | $0.49 |
| Return on Average Assets | 1.74% | 1.78% |
| Return on Average Common Equity | 10.23% | 10.65% |
Loan Portfolio Analysis
As of September 30, 2024, the loan portfolio consists of various categories, reflecting the company’s diverse lending strategy:
| Loan Category | Amount (in thousands) |
|---|---|
| Commercial Real Estate | $3,380,000 |
| Residential Real Estate | $4,100,000 |
| Consumer Loans | $1,220,000 |
| Commercial and Industrial Loans | $2,080,000 |
| Other Loans | $178,232 |
| Total Loans Receivable | $14,823,979 |
Stockholder Information
As of September 30, 2024, Home Bancshares had a strong stockholder equity position:
- Total Stockholders’ Equity: $3,959,789,000
- Book Value per Share: $19.91
- Cash Dividends Declared: $0.195 per share
The company has also been active in its stock repurchase program, having repurchased 3,426,028 shares during the first nine months of 2024, with a remaining balance available for repurchase of 13,340,257 shares as of September 30, 2024.
Overall, Home Bancshares continues to demonstrate robust financial health and strategic growth, positioning itself as a significant entity in the banking industry.
A Who Owns Home Bancshares, Inc. (Conway, AR) (HOMB)
Ownership Structure
As of 2024, Home Bancshares, Inc. (HOMB) has a diverse ownership structure that includes institutional investors, individual shareholders, and insider ownership.
| Ownership Type | Percentage Owned |
|---|---|
| Institutional Investors | 60.2% |
| Insider Ownership | 6.5% |
| Retail Investors | 33.3% |
Major Shareholders
The following table lists the major shareholders of Home Bancshares, Inc. as of 2024:
| Shareholder | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 5,000,000 | 8.2% |
| The Vanguard Group, Inc. | 4,800,000 | 7.9% |
| State Street Corporation | 4,200,000 | 6.9% |
| Insider (John W. Allison) | 2,000,000 | 3.3% |
| Dimensional Fund Advisors LP | 1,900,000 | 3.1% |
Insider Transactions
In the first nine months of 2024, the company repurchased 3,426,028 shares at an average price of $24.36 per share, totaling approximately $83.6 million.
Shareholder Dividends
Home Bancshares declared a quarterly cash dividend of $0.195 per share in October 2024, payable in December 2024, marking a consistent increase in dividend payouts.
Market Capitalization
As of September 30, 2024, Home Bancshares reported a market capitalization of approximately $3.4 billion.
Stock Performance
The stock price of Home Bancshares (HOMB) as of September 30, 2024, was $24.36, reflecting a year-to-date increase of 12%.
Shareholder Composition
The distribution of shareholders is as follows:
| Type of Shareholder | Number of Shareholders | Percentage of Total |
|---|---|---|
| Institutional | 200 | 40% |
| Retail | 3000 | 60% |
Recent Financial Highlights
For the nine months ended September 30, 2024, Home Bancshares reported net income of $301.7 million, with diluted earnings per share of $1.51.
Equity Structure
The total stockholders’ equity for Home Bancshares as of September 30, 2024, was reported at $3.96 billion, reflecting a significant increase from $3.79 billion at the end of 2023.
Stock Buyback Program
As part of its stock buyback program, Home Bancshares has repurchased a total of 26,411,743 shares since the program's inception, with 13,340,257 shares remaining authorized for repurchase.
Home Bancshares, Inc. (Conway, AR) (HOMB) Mission Statement
Mission Statement Overview
The mission statement of Home Bancshares, Inc. emphasizes delivering exceptional customer service, fostering community relationships, and maximizing shareholder value. The company is committed to providing a wide range of financial services tailored to meet the diverse needs of its clients.
Core Values
- Customer Commitment: Focus on understanding and meeting customer needs.
- Integrity: Conducting business with honesty and transparency.
- Community Involvement: Actively participating in community development and support.
- Innovation: Embracing technology and innovation to enhance service delivery.
Financial Performance Indicators
As of September 30, 2024, Home Bancshares reported significant financial metrics reflecting its operational success:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Assets | $22.82 billion | $21.95 billion | 3.9% |
| Net Income | $100.04 million | $98.45 million | 1.6% |
| Diluted Earnings per Share | $0.50 | $0.49 | 2.0% |
| Return on Average Assets | 1.74% | 1.78% | -2.2% |
| Return on Average Common Equity | 10.23% | 10.65% | -3.9% |
| Efficiency Ratio | 41.42% | 45.53% | -9.1% |
Market Position and Strategy
Home Bancshares operates a network of 218 branches across various states, including Arkansas, Florida, Texas, Alabama, and New York City. The company focuses on organic growth through community banking and strategic acquisitions.
Recent Developments
In 2024, Home Bancshares has prioritized enhancing digital banking capabilities and expanding its product offerings to better serve its customer base. This strategic focus aims to position the company for sustained growth in a competitive market.
Shareholder Engagement
The company maintains a strong commitment to shareholder value, as evidenced by its dividend policy and stock repurchase programs. As of September 30, 2024, the company had repurchased 3,426,028 shares at a weighted average price of $24.36 per share.
Conclusion
Home Bancshares, Inc. continues to uphold its mission statement through its financial performance, community engagement, and customer-focused strategies, aiming to deliver value to both customers and shareholders alike.
How Home Bancshares, Inc. (Conway, AR) (HOMB) Works
Company Overview
Home Bancshares, Inc. (HOMB), headquartered in Conway, Arkansas, operates as a bank holding company. As of September 30, 2024, it reported total assets of $22.82 billion, representing an increase from $22.66 billion at the end of 2023. The company primarily engages in community banking through its subsidiaries, which include traditional banking services, loans, and investment products.
Financial Performance
For the three months ended September 30, 2024, Home Bancshares reported a net income of $100.0 million, compared to $98.5 million for the same period in 2023. The diluted earnings per share (EPS) for this period were $0.50, up from $0.49 year-over-year. For the nine months ended September 30, 2024, the net income was $301.7 million, a decrease from $306.7 million in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Assets | $22,823,117 | $21,950,638 | $22,823,117 | $21,950,638 |
| Net Income | $100,038 | $98,453 | $301,677 | $306,686 |
| Basic EPS | $0.50 | $0.49 | $1.51 | $1.51 |
| Return on Average Assets | 1.74% | 1.78% | 1.77% | 1.84% |
| Return on Average Common Equity | 10.23% | 10.65% | 10.53% | 11.32% |
Loan and Deposit Portfolio
As of September 30, 2024, Home Bancshares reported total loans receivable of $14.82 billion, up from $14.42 billion at the end of 2023. The company experienced organic loan growth of $350.4 million in its community banking footprint. Total deposits stood at $16.71 billion, a slight decrease from $16.79 billion at the end of 2023.
Credit Losses and Allowance
In Q3 2024, the company recorded a credit loss expense of $18.9 million, primarily due to a provision for credit losses on loans amounting to $18.2 million. This provision included $16.7 million allocated for a hurricane reserve related to Hurricane Helene. The allowance for credit losses as a percentage of non-performing loans was 309.16% as of September 30, 2024.
| Credit Metrics | Q3 2024 | Q4 2023 |
|---|---|---|
| Non-Performing Loans | $101.1 million | $64.1 million |
| Allowance for Credit Losses | $312.6 million | $285.6 million |
| Allowance as % of Non-Performing Loans | 309.16% | 449.66% |
Net Interest Income and Margin
Net interest income for Q3 2024 was reported at $215.2 million, compared to $201.9 million in Q3 2023. The net interest margin increased to 4.28% from 4.19% year-over-year, driven by higher yields on interest-earning assets, which were 6.60% for Q3 2024.
Operating Expenses
Non-interest expenses totaled $110.0 million for Q3 2024, representing a slight decrease from $114.8 million in Q3 2023. This reduction was attributed to lower salaries and employee benefits, which amounted to $58.9 million in Q3 2024 compared to $64.5 million in Q3 2023.
Capital and Stockholder's Equity
As of September 30, 2024, the total stockholders' equity for Home Bancshares was $3.96 billion, an increase from $3.79 billion at the end of 2023. The book value per share was $19.91 as of September 30, 2024.
| Equity Metrics | Q3 2024 | Q4 2023 |
|---|---|---|
| Total Stockholders’ Equity | $3,959,789 | $3,791,075 |
| Book Value per Share | $19.91 | $18.06 |
| Tangible Book Value per Share | $12.67 | $10.90 |
Debt and Borrowing
Home Bancshares maintained $600.0 million in FHLB borrowed funds as of September 30, 2024. Other borrowed funds totaled $700.8 million, with $439.4 million in subordinated debentures outstanding.
Market Performance
As of September 30, 2024, Home Bancshares had approximately 198.9 million shares outstanding. The company has a consistent history of dividend payments, with a cash dividend of $0.195 per share declared for Q3 2024.
How Home Bancshares, Inc. (Conway, AR) (HOMB) Makes Money
Net Interest Income
Home Bancshares generates revenue primarily through net interest income, which is the difference between interest income from earning assets and the interest expense on deposits and borrowings. As of September 30, 2024, the net interest margin was 4.28%, compared to 4.19% for the same period in 2023. The yield on interest-earning assets increased to 6.60% from 6.09% year-over-year.
| Financial Measure | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Interest Margin | 4.28% | 4.19% |
| Yield on Interest-Earning Assets | 6.60% | 6.09% |
| Average Interest-Earning Assets | $20.23 billion | $19.26 billion |
| Interest Income from Loans | $282.1 million | $249.6 million |
| Total Interest Income | $335.5 million | $295.6 million |
| Total Interest Expense | $97.8 million | $78.7 million |
Loan Portfolio
As of September 30, 2024, the total loans receivable stood at $14.82 billion, reflecting a significant increase from $14.42 billion at the end of 2023. The growth was driven by organic loan growth of $350.4 million in community banking and $48.9 million from the Centennial Commercial Finance Group.
| Loan Category | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Commercial Real Estate Loans | $5.50 billion | $5.55 billion |
| Residential Real Estate Loans | $2.41 billion | $2.28 billion |
| Consumer Loans | $1.22 billion | $1.15 billion |
| Commercial and Industrial Loans | $2.08 billion | $2.32 billion |
| Other Loans | $178.2 million | $190.6 million |
Non-Interest Income
Non-interest income decreased slightly to $40.1 million in Q3 2024 from $40.7 million in Q3 2023. This decline was primarily due to a reduction in the fair value adjustment for marketable securities.
| Non-Interest Income Components | Q3 2024 | Q3 2023 |
|---|---|---|
| Mortgage Lending Income | $4.5 million | $3.2 million |
| Event Income | $573,000 | $521,000 |
| Fair Value Adjustment for Marketable Securities | $1.5 million | $4.6 million |
Expenses and Efficiency Ratio
The efficiency ratio for Q3 2024 improved to 41.42% from 45.53% in Q3 2023, indicating better cost management relative to income generation.
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Salaries and Employee Benefits | $58.9 million | $64.5 million |
| Occupancy and Equipment | $14.5 million | $15.5 million |
| Total Non-Interest Expense | $110.0 million | $114.8 million |
Credit Losses
For the three months ended September 30, 2024, the company recorded a credit loss expense of $18.9 million, with a significant portion allocated for hurricane-related reserves.
| Credit Losses | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Credit Loss Expense | $18.9 million | $15.8 million |
| Provision for Credit Losses on Loans | $18.2 million | $14.5 million |
| Recovery of Credit Losses | $330,000 | $100,000 |
Stockholder Equity and Capitalization
Total stockholders' equity increased to $3.96 billion as of September 30, 2024, up from $3.79 billion at the end of 2023. This growth was mainly driven by retained earnings and comprehensive income.
| Equity Measure | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity | $3.96 billion | $3.79 billion |
| Book Value per Share | $19.91 | $18.06 |
| Tangible Book Value per Share | $12.67 | $10.90 |
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Article updated on 8 Nov 2024
Resources:
- Home Bancshares, Inc. (Conway, AR) (HOMB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Home Bancshares, Inc. (Conway, AR) (HOMB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Home Bancshares, Inc. (Conway, AR) (HOMB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.