Mar 31, 2022

Home BancShares Q1 2022 Earnings Report

Home BancShares reported earnings that beat EPS estimates for the first quarter of 2022.

Key Takeaways

Home BancShares, Inc. reported a solid performance in the first quarter of 2022, with net income of $64.9 million, or $0.40 earnings per share, despite a volatile economic environment.

Net income for the three-month period ended March 31, 2022 was $64.9 million, or $0.40 earnings per share.

The Company did not record any credit loss expense during the first quarter of 2022.

Net interest margin was 3.21% for the three-month period ended March 31, 2022.

Total loans receivable were $10.05 billion at March 31, 2022 compared to $9.84 billion at December 31, 2021.

Total Revenue
$162M
Previous year: $193M
-16.3%
EPS
$0.37
Previous year: $0.55
-32.7%
Efficiency Ratio
46.15%
Previous year: 36.6%
+26.1%
Net Interest Margin
3.21%
Previous year: 4.02%
-20.1%
Cash and Equivalents
$3.62B
Previous year: $2.48B
+46.0%
Free Cash Flow
$87.4M
Previous year: $118M
-25.9%
Total Assets
$18.6B
Previous year: $17.2B
+8.0%

Home BancShares

Home BancShares

Forward Guidance

Management anticipates continued rate hikes by the Federal Reserve and is positioned to deploy excess cash in the remainder of the year.

Positive Outlook

  • Company has over $3.5 billion in excess cash.
  • Rising interest rates could benefit the Company.
  • Company's discipline has delivered solid performance.
  • Positioned well in the market.
  • Expectation of continued rate hikes by the Fed.

Challenges Ahead

  • Record high wholesale prices.
  • Rising interest rates.
  • Future recession fears.
  • Global unrest.
  • Volatile quarter.