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Home BancShares Reports Record Q3 Net Income of $129.5 Million

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HOMB$28.29 −0.25%

Home BancShares, Inc. (HOMB) delivered record profitability in the third quarter, posting net income of $129.5 million and diluted earnings per share of $0.65. Earnings were buoyed by an expanding net interest margin, which rose to 4.53% from 4.51% in the second quarter, along with a tight efficiency ratio of 40.78%.

Strong profitability helped counter sequential contraction across the bank's balance sheet. Total loans fell to $16.91 billion from $17.13 billion in the prior quarter, while total deposits decreased to $18.76 billion from $19.11 billion. Credit metrics also showed slight weakness as non-performing loans climbed to 1.19% of loans from 1.08%.

Going forward, investors will watch whether the financial institution can stabilize loan and deposit volumes. Restoring balance sheet growth and maintaining credit quality will be critical to sustaining earnings performance.

Key points

  • Home BancShares earned record third-quarter net income of $129.5 million, with diluted earnings per share of $0.65.
  • Net interest margin expanded to 4.53% in the third quarter, up from 4.51% in the prior quarter.
  • Total loans decreased to $16.91 billion and total deposits dropped to $18.76 billion quarter-over-quarter.
  • Non-performing loans increased to 1.19% of total loans, compared to 1.08% in the previous quarter.

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Questions and answers

What were Home BancShares Q3 earnings?

Home BancShares reported record third-quarter net income of $129.5 million and diluted earnings per share of $0.65.

How did Home BancShares loan and deposit levels change in Q3?

Total loans fell to $16.91 billion from $17.13 billion in the previous quarter, while total deposits decreased to $18.76 billion from $19.11 billion.

What was Home BancShares net interest margin in Q3?

The bank's net interest margin rose to 4.53% in the third quarter, compared to 4.51% in the second quarter.