Home BancShares(US:HOMB)2022-11-04 15:04Financial Performance - The company reported a net income of $XX million for the nine months ended September 30, 2022, compared to $XX million for the same period in 2021, reflecting a year-over-year growth of XX%[14] - Net income for the three months ended September 30, 2022, was $108,705,000, compared to $74,992,000 for the same period in 2021, reflecting a 45.0% increase[17] - Net income for the nine months ended September 30, 2022, was $189,575, compared to $245,664 for the same period in 2021, reflecting a decrease of approximately 23%[25] - The company reported a net unrealized loss on available-for-sale securities of $122,307,000 for the three months ended September 30, 2022[17] - Comprehensive income for the three months ended September 30, 2022, was $17,155,000, compared to $71,876,000 in the same quarter of 2021[17] - The company reported a net income of $108.7 million for the three months ended September 30, 2022, compared to $75.0 million for the same period in 2021, representing a 44% increase[49] - Basic earnings per share for the three months ended September 30, 2022, was $0.53, up from $0.46 in the same quarter of 2021[15] - Net income available to all shareholders for the nine months ended September 30, 2022, was $291.26 million, compared to $220.50 million in 2021, reflecting a year-over-year increase of 32%[70] Asset Growth - Total assets increased to $23.16 billion as of September 30, 2022, up from $18.05 billion at December 31, 2021, representing a growth of 28.5%[13] - Loans receivable rose to $13.83 billion, a significant increase of 40.4% from $9.84 billion in the previous year[13] - Total deposits grew to $18.54 billion, up 30.5% from $14.26 billion at the end of 2021[13] - Stockholders' equity reached $3.46 billion, an increase of 25.2% from $2.77 billion at the end of 2021[13] - Total cash and cash equivalents at the end of the period were $1,580,421, down from $3,280,256 at the end of the same period in 2021, representing a decrease of approximately 51.9%[25] Credit Losses and Risk Management - The allowance for credit losses increased to $289.20 million, compared to $236.71 million in the prior year, indicating a rise of 22.1%[13] - The provision for credit losses on acquired loans for the nine months ended September 30, 2022, was $45,170,000, indicating a focus on managing credit risk[15] - The company recorded a provision for credit losses of $2.0 million on held-to-maturity securities due to the Happy acquisition, with 88.7% of these being municipal securities[80] - The company determined that the allowance for credit losses of $842,000 for the available-for-sale investment portfolio was adequate as of September 30, 2022[81] - The company recorded a $45.2 million provision for credit losses on acquired loans related to the CECL "double count" following the acquisition of Happy[101] Acquisitions and Market Expansion - The company plans to expand into new markets through potential acquisitions, including the recent acquisition of Happy Bancshares, Inc.[8] - The acquisition of Happy Bancshares, Inc. was completed on April 1, 2022, with a total transaction value of approximately $962.5 million, enhancing market presence and operational synergies[50] - Happy Bancshares had approximately $6.69 billion in total assets, $3.65 billion in loans, and $5.86 billion in customer deposits at the time of acquisition[51] Income and Expenses - Total non-interest expense for the nine months ended September 30, 2022, was $356,724,000, an increase of 60.9% compared to $221,467,000 in the prior year[15] - Salaries and employee benefits for the three months ended September 30, 2022, were $65.3 million, up from $42.5 million in the same period of 2021[156] - Interest paid during the nine months ended September 30, 2022, was $65.123 million, compared to $36.757 million in the same period of 2021[179] Investment Securities - The total amortized cost of investment securities classified as available-for-sale was approximately $4.50 billion, with an estimated fair value of $4.08 billion as of September 30, 2022[72] - The fair value of loans receivable from Happy was recorded at $3.65 billion, with an allowance for credit losses of $(42.2 million)[54] - The fair value adjustment for time deposits was $963,000, as the weighted-average interest rate of Happy's certificates of deposits was below current market rates[63] Loan Portfolio - The total loan portfolio stands at $13,829.3 million, reflecting a decrease of 11.4% from $15,617.6 million in 2021[119] - Total commercial real estate loans amounted to $1,434.7 million, a decrease of 17.1% from $1,730.3 million in 2021[119] - Total consumer loans reached $221,625,000 in 2022, down from $302,788,000 in 2021, indicating a decrease of about 26.8%[115] Regulatory and Economic Factors - Future performance may be impacted by economic conditions, regulatory changes, and integration challenges from recent acquisitions[8] - The company expects to continue monitoring economic conditions in key states including Arkansas, Florida, Texas, Alabama, and New York[112] Stockholder Activities - The company has engaged in share repurchases, with 1,045,799 shares repurchased during the period[20] - The company repurchased 2,258,531 shares of common stock at a weighted-average price of $22.50 per share during the first nine months of 2022[148] - The remaining balance available for stock repurchase as of September 30, 2022, was 19,832,134 shares[148]