Dec 31, 2022

Home BancShares Q4 2022 Earnings Report

Home BancShares demonstrated financial strength and delivered strong performance despite headwinds.

Key Takeaways

Home BancShares, Inc. reported a net income of $115.7 million for Q4 2022, with diluted earnings per share of $0.57. The company experienced loan growth and an increase in net interest margin, while also managing deposit costs effectively. The results reflect a disciplined strategy and the strength of the full franchise.

Net income for Q4 2022 reached $115.7 million, or $0.57 earnings per share.

Net interest margin improved to 4.21% for the quarter.

Loans grew by $580 million during the fourth quarter.

The company maintained a strong allowance for credit losses.

Total Revenue
$272M
Previous year: $171M
+59.3%
EPS
$0.53
Previous year: $0.45
+17.8%
Efficiency Ratio
42.44%
Previous year: 43.79%
-3.1%
Cash and Equivalents
$725M
Previous year: $3.65B
-80.1%
Free Cash Flow
$139M
Previous year: $85.7M
+62.3%
Total Assets
$22.9B
Previous year: $18.1B
+26.8%

Home BancShares

Home BancShares

Home BancShares Revenue by Geographic Location

Forward Guidance

Management expects to continue focusing on disciplined growth and maintaining financial strength.

Positive Outlook

  • Continued loan growth momentum.
  • Rising interest rate environment benefiting loan yields.
  • Strength in the full franchise supporting performance.
  • Effective management of deposit costs.
  • Disciplined approach to capital allocation.

Challenges Ahead

  • Potential headwinds from West Texas market.
  • Rising interest expenses on deposits.
  • Fair value adjustment for marketable securities.
  • Legal expense from a lawsuit.
  • Uncertainties related to economic conditions.