Mar 31, 2020

Home BancShares Q1 2020 Earnings Report

Home BancShares remained profitable in the first quarter during unprecedented times.

Key Takeaways

Home BancShares, Inc. reported first quarter earnings, demonstrating resilience with profitability despite significant net income noise primarily related to COVID-19 and acquisition-related expenses. The company's earnings power shone through, maintaining profitability even after $95 million of noise, most of which were non-cash expenditures.

The company recorded a $71.7 million provision for credit losses due to COVID-19.

Non-GAAP net earnings were $70.8 million, or $0.43 diluted earnings per share, after adjusting for $95.2 million of net additional expenses.

Net interest margin was 4.22% for the three-month period ended March 31, 2020.

Total assets increased to $15.53 billion at March 31, 2020.

Total Revenue
$163M
Previous year: $163M
-0.3%
EPS
$0.43
Previous year: $0.42
+2.4%
Efficiency Ratio
46.82%
Net Interest Margin
4.22%
NPAs to Total Assets
0.44%

Home BancShares

Home BancShares

Home BancShares Revenue by Geographic Location

Forward Guidance

This release may contain forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future.

Positive Outlook

  • Economic conditions
  • Credit quality
  • Interest rates
  • Loan demand
  • Technological changes and cybersecurity risks

Challenges Ahead

  • Disruptions and uncertainties in our business and operations as a result of the ongoing coronavirus pandemic
  • The ability to successfully integrate new acquisitions
  • Legislative and regulatory changes and risks associated with current and future regulations
  • Competition from other financial institutions
  • Changes in the assumptions used in making the forward-looking statements