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Mar 31, 2023
Home BancShares Q1 2023 Earnings Report
HOMB's balance sheet weathered the storm.
Key Takeaways
Home BancShares reported a strong first quarter with a net income of $103.0 million and diluted earnings per share of $0.51. The company's liquidity and availability provide more than 100% coverage for all uninsured and uncollateralized depositors.
Net income for Q1 2023 was $103.0 million, or $0.51 diluted earnings per share.
Net interest margin was 4.37% for the three-month period ended March 31, 2023.
Total loans receivable were $14.39 billion at March 31, 2023.
Total deposits were $17.45 billion at March 31, 2023.
Home BancShares
Home BancShares
Forward Guidance
The company's management expressed confidence in its strong liquidity and balance sheet, positioning it favorably amidst a volatile banking environment. They anticipate continued strong earnings for shareholders.
Positive Outlook
- Strong liquidity position with significant coverage for uninsured depositors.
- Ability to pay all uninsured and uncollateralized deposits in excess of FDIC limits and still have $1.7 billion remaining.
- Fortress balance sheet built at Home BancShares.
- Ability to deliver strong earnings for shareholders.
- Net available liquidity exceeded uninsured and uncollateralized deposits by $1.71 billion.
Challenges Ahead
- Rising interest rate environment may increase interest expenses.
- Potential increase in interest expense by approximately $64.2 million if all net uninsured deposits were called.
- Experienced approximately $22.8 million in loan decline during the first quarter of 2023.
- Non-performing loans to total loans was 0.51% at March 31, 2023, compared to 0.42% at December 31, 2022.
- Non-performing assets to total assets was 0.33% at March 31, 2023, compared to 0.27% at December 31, 2022.