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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
Home BancShares Revenue by Geographic Location
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.