Loading...
•
Dec 31, 2021
Home BancShares Q4 2021 Earnings Report
Ended 2021 with record annual profits and a fortress balance sheet.
Key Takeaways
Home BancShares reported a net income of $73.4 million and diluted earnings per share of $0.45 for the fourth quarter of 2021. The company's strong asset quality and strategic balance sheet positioning contributed to the positive results.
Net income for Q4 2021 was $73.4 million, or $0.45 earnings per share.
Net interest margin was 3.42% for the three-month period ended December 31, 2021.
Total loans receivable were $9.84 billion at December 31, 2021.
Non-performing assets to total assets was 0.29% as of December 31, 2021.
Home BancShares
Home BancShares
Forward Guidance
The company expects to close the acquisition of Happy Bancshares, Inc. during the first quarter of 2022.
Positive Outlook
- The Company is starting out 2022 with a fortress balance sheet.
- The Company is poised to pivot in any direction where opportunities arise.
- The Company continues strong asset quality.
- The Company determined an additional provision for credit loss was not necessary.
- The Company received approval for the merger from the Arkansas State Banking Board and the Arkansas State Bank Commissioner as well as the approval of the shareholders of each company in December of 2021.
Challenges Ahead
- The possibility that the proposed acquisition of Happy does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all.
- The possibility that such transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events.
- The risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, ongoing or future effects of the COVID-19 pandemic, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Home and Happy operate.
- Diversion of management time on acquisition-related issues.
- Economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment.