Jun 30, 2021

Home BancShares Q2 2021 Earnings Report

Reported record net income through first six months of 2021 and maintained stable performance.

Key Takeaways

Home BancShares, Inc. reported a net income of $79.1 million, or $0.48 earnings per share, for the three-month period ended June 30, 2021. The company experienced loan decline of approximately $579.3 million during the second quarter 2021.

Net income for the quarter was $79.1 million, or $0.48 earnings per share.

Recorded a negative provision for unfunded commitments of $4.8 million, or $0.02 per share, primarily due to a single commercial & industrial loan.

Net interest margin was 3.61% for the quarter.

Total assets were $17.63 billion as of June 30, 2021, compared to $17.24 billion as of March 31, 2021.

Total Revenue
$172M
Previous year: $174M
-0.8%
EPS
$0.48
Previous year: $0.38
+26.3%
Efficiency Ratio
41.08%
Previous year: 44.93%
-8.6%
Net Interest Margin
3.61%
Previous year: 4.11%
-12.2%
NPAs to Total Assets
0.35%
Cash and Equivalents
$2.94B
Previous year: $1.22B
+141.9%
Free Cash Flow
$88.2M
Previous year: $17.3M
+410.9%
Total Assets
$17.6B
Previous year: $16.9B
+4.3%

Home BancShares

Home BancShares

Home BancShares Revenue by Geographic Location

Forward Guidance

The company plans to be patient and maintain discipline in its approach to loan growth, focusing on long-term value rather than short-term gains, while preparing for potential higher rates and inflation.

Positive Outlook

  • Continued stable performance.
  • Record net income for the six-month period ended June 30, 2021.
  • Maintaining discipline in face of economic instability.
  • Prepared for higher rates.
  • Prepared for more inflation.

Challenges Ahead

  • Potential impact of economic conditions.
  • Credit quality concerns.
  • Interest rate fluctuations.
  • Changes in loan demand.
  • Real estate value uncertainties.