Company Overview - Home Bancshares (NYSE: HOMB) is the parent company of Centennial Bank, a regional banking institution based in Conway, Arkansas [1] - The bank has expanded its operations across much of the Southeastern United States and into Texas [1] Investment Focus - Grassroots Trading emphasizes providing objective, unbiased, and balanced research, supported by solid data without emotional influences [1] - The focus is primarily on small- to mid-cap companies, offering compelling investment perspectives on often overlooked opportunities [1] - The scope also includes identifying potential opportunities in large- and mega-cap companies, thereby providing comprehensive coverage of the equity markets [1]

Core Points - Home BancShares, Inc. is set to release its First Quarter 2025 earnings on April 16, 2025, after market close [1] - A conference call to discuss the earnings will take place on April 17, 2025, at 1:00 p.m. CT [1] - The company encourages participants to pre-register for the conference call via provided links [2] - For those without internet access, a dial-in option is available for the live call [3] - Home BancShares, Inc. operates as a bank holding company with its subsidiary, Centennial Bank, offering a range of banking services [4] - Centennial Bank has branches in multiple states including Arkansas, Florida, South Alabama, Texas, and New York City [4]

Financial Performance - Total revenue for 2024 was $1.02 billion, up from $996.88 million in 2023, indicating a growth of 2.3%[15] - Net income for 2024 reached $402.24 million, compared to $392.93 million in 2023, representing an increase of 2.8%[15] - Basic earnings per common share for 2024 were $2.01, up from $1.94 in 2023, indicating a growth of approximately 3.6%[210] - The company declared a quarterly dividend of $0.75 per common share, compared to $0.66 in the previous year, marking an increase of about 13.6%[210] - The efficiency ratio improved to 42.74% in 2024 from 46.21% in 2023, demonstrating better operational efficiency[210] - The return on average assets remained stable at 1.77% for both 2024 and 2023[210] Asset and Deposit Trends - Total assets as of December 31, 2024, were $22.49 billion, a slight decrease from $22.66 billion in 2023[15] - Total deposits increased to $17.15 billion in 2024 from $16.79 billion in 2023, reflecting a growth of 2.2%[15] - Loans receivable increased to $14,764,500 thousand in 2024, up from $14,424,728 thousand in 2023, representing a growth of about 2.35%[213] - Total deposits rose to $17,146,297 thousand in 2024, compared to $16,787,711 thousand in 2023, an increase of approximately 2.14%[213] Loan Portfolio Composition - Commercial real estate loans constituted 57.6% of gross loans as of December 31, 2024[15] - The loan portfolio as of December 31, 2024, totaled $14.76 billion, with commercial real estate loans making up 36.8% of the portfolio[34] - As of December 31, 2024, approximately 74.2% of the total loan portfolio was comprised of real estate loans, including $5.76 billion in commercial real estate loans, $2.74 billion in construction/land development loans, and $2.45 billion in residential real estate loans[147] - As of December 31, 2024, commercial real estate and construction/land development loans comprised 57.6% of the total loan portfolio, while residential real estate loans made up 16.6%[148] Capital and Regulatory Compliance - The required minimum capital ratios under Basel III as of December 31, 2024, include CET1 capital of 7.0%, Tier 1 risk-based capital of 8.5%, total risk-based capital of 10.5%, and a leverage ratio of 4.0%[70] - As of December 31, 2024, the capital conservation buffer was 9.11%, with CET1 capital, Tier 1 risk-based capital, total risk-based capital, and leverage ratios at 15.11%, 15.11%, 18.74%, and 13.05%, respectively[70] - The bank subsidiary's total assets exceed $10 billion, subjecting it to additional supervision and regulation by the Consumer Financial Protection Bureau (CFPB) [60] - The company is subject to heightened regulatory requirements due to total assets exceeding $10 billion, impacting compliance costs and operational flexibility[133] Risk Factors - The company faces significant risks from interest rate fluctuations, with the Federal Reserve having implemented eleven interest rate increases since March 2022[141] - Economic downturns have historically adversely impacted the banking industry, particularly community banks, affecting credit performance and asset values[136] - The company has exposure to other financial institutions, which could lead to losses if those institutions experience instability or fail[142] - The company’s profitability is vulnerable to changes in monetary policy and interest rates, which can affect loan demand and borrower repayment capabilities[140] Competition and Market Presence - The company faces substantial competition from various financial institutions, including commercial banks, credit unions, and mortgage banking firms[168] - Economic conditions, regulatory changes, and competition may impede the company's ability to expand its market presence and grow its business[158] - The company faces competitive disadvantages against larger national and regional financial institutions due to its smaller size and resources, which may limit its ability to offer competitive products and services[169] - The company is experiencing increased competition from community banks that target the same small and mid-sized businesses, potentially impacting asset growth and financial results[170] Cybersecurity and Information Security - Cybersecurity threats, including ransomware and denial-of-service attacks, pose significant risks to the company's operations and customer data, necessitating ongoing investment in security measures[183] - The company has a formal Information Security Program that includes regular risk assessments and incident monitoring to protect its information systems[184] - The company maintains a cybersecurity program evaluated by both internal and third-party audits to ensure effectiveness against evolving threats[189] Investment Securities - The company owned $3.07 billion of available-for-sale investment securities as of December 31, 2024, which may be adversely affected by market conditions[156] - The company has $1.28 billion of held-to-maturity investment securities, with expected credit losses evaluated on a collective basis by major security type[157] Employee and Community Engagement - The bank's employee count was 2,552 full-time equivalent employees as of December 31, 2024[53] - 69% of the bank's employees were women, and 28% identified as persons of color as of December 31, 2024[55] - The bank's community banking philosophy emphasizes personal relationships and quality service provided by experienced bankers[52]

Core Viewpoint - Home BancShares, Inc. has authorized an increase in its stock repurchase program and declared a quarterly cash dividend, reflecting the company's commitment to returning value to shareholders [1][2][3]. Stock Repurchase Program - The Board of Directors has increased the shares available for repurchase to 20,000,000, with approximately 13,244,493 shares remaining available as of January 17, 2025, resulting in an increase of 6,755,507 shares [2]. - The stock repurchase program was originally approved in January 2008 and most recently amended in January 2021 [2]. Dividend Declaration - A quarterly cash dividend of $0.195 per share has been declared, payable on March 5, 2025, to shareholders of record on February 12, 2025 [3]. - This dividend is consistent with the quarterly dividends paid during the third and fourth quarters of 2024 [3]. Company Overview - Home BancShares, Inc. is a bank holding company headquartered in Conway, Arkansas, with its wholly-owned subsidiary, Centennial Bank, providing a range of commercial and retail banking services [5]. - Centennial Bank operates branches in Arkansas, Florida, Texas, South Alabama, and New York City [5]. - The company's common stock is traded on the New York Stock Exchange under the symbol "HOMB" [5].

Core Points - Home BancShares, Inc. has authorized an increase in the shares available for repurchase to 20,000,000 shares, with approximately 13,244,493 shares remaining available as of January 17, 2025, resulting in an increase of 6,755,507 shares [2] - The Board of Directors declared a regular quarterly cash dividend of $0.195 per share, payable on March 5, 2025, to shareholders of record on February 12, 2025, consistent with dividends paid in the third and fourth quarters of 2024 [3] Company Overview - Home BancShares, Inc. is a bank holding company headquartered in Conway, Arkansas, with its wholly-owned subsidiary, Centennial Bank, providing a range of commercial and retail banking services [5] - Centennial Bank operates branch locations in Arkansas, Florida, Texas, South Alabama, and New York City, and the company's common stock is traded on the New York Stock Exchange under the symbol "HOMB" [5]

Company Overview - Home BancShares (HOMB) is a bank holding company headquartered in Conway, with a year-to-date price change of 7.42% [3] - The company currently pays a dividend of $0.19 per share, resulting in a dividend yield of 2.57%, which is higher than the Banks - Southeast industry's yield of 2.28% and the S&P 500's yield of 1.51% [3] Dividend Performance - The annualized dividend of Home BancShares is $0.78, reflecting a 4% increase from the previous year [4] - Over the last 5 years, the company has increased its dividend 4 times year-over-year, averaging an annual increase of 9.70% [4] - The current payout ratio is 39%, indicating that the company paid out 39% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - Home BancShares is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $2.17 per share, representing a year-over-year growth rate of 7.96% [5] Investment Appeal - The company is viewed as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]

Group 1 - Home Bancshares, Inc. is expected to experience continued earnings growth this year due to low organic loan growth [1] - The provision expense for Home Bancshares is anticipated to be lower this year after a spike last year caused by hurricanes [1]

Home Bancshares, Inc. (Conway, AR) (NYSE:HOMB) Q4 2024 Earnings Conference Call January 16, 2025 2:00 PM ET Company Participants Donna Townsell - Director, Investor Relations John Allison - Chairman Brian Davis - Chief Financial Officer Stephen Tipton - Chief Executive Officer, Centennial Bank Kevin Hester - President & Chief Lending Officer Tracy French - Chairman, Centennial Bank Chris Poulton - President, CCFG Conference Call Participants Catherine Mealor – KBW Brett Rabatin - Hovde Group Jon Arfstrom - ...

For the quarter ended December 2024, Home BancShares (HOMB) reported revenue of $258.36 million, up 5.2% over the same period last year. EPS came in at $0.50, compared to $0.48 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $254.6 million, representing a surprise of +1.48%. The company delivered an EPS surprise of -3.85%, with the consensus EPS estimate being $0.52.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- an ...

Core Viewpoint - Home BancShares reported quarterly earnings of $0.50 per share, missing the Zacks Consensus Estimate of $0.52 per share, representing an earnings surprise of -3.85% [1][2] Financial Performance - The company posted revenues of $258.36 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.48%, compared to year-ago revenues of $245.62 million [2] - Over the last four quarters, Home BancShares has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - Home BancShares shares have increased by approximately 0.6% since the beginning of the year, while the S&P 500 has declined by -0.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $251.37 million, and for the current fiscal year, it is $2.14 on revenues of $1.03 billion [7] Industry Outlook - The Zacks Industry Rank for Banks - Southeast is currently in the top 31% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]