Home BancShares(HOMB) - 2024 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2024 was $100.1 million, or $0.50 diluted earnings per share, with adjusted net income of $99.2 million and $0.49 per share[6]. - Net income for Q1 2024 was $100.1 million, up from $86.2 million in Q4 2023, representing a 16.5% increase[16]. - Total revenue for Q1 2024 was $246.4 million, slightly up from $245.6 million in Q4 2023[16]. - Pre-tax net income to total revenue ratio improved to 52.92% in Q1 2024 from 45.92% in Q4 2023[16]. - Return on assets (ROA) increased to 1.78% in Q1 2024 compared to 1.55% in Q4 2023[16]. - Diluted earnings per share for Q1 2024 was $0.50, an increase from $0.43 in Q4 2023[16]. - GAAP net income available to common shareholders for Q1 2024 was $100,109,000, an increase from $86,243,000 in Q4 2023[37]. - Earnings, as adjusted, for Q1 2024 were $99,195,000, compared to $92,213,000 in Q4 2023, reflecting a growth of 8.6%[37]. - Return on average assets for Q1 2024 was 1.78%, an increase from 1.55% in Q4 2023[37]. - Return on average common equity was 10.64%, an increase from 9.36% in the previous period[38]. Liquidity and Deposits - Total loans receivable increased to $14.51 billion as of March 31, 2024, up from $14.42 billion at December 31, 2023[8]. - Total deposits rose to $16.87 billion at March 31, 2024, compared to $16.79 billion at December 31, 2023[8]. - The company held approximately $8.42 billion in uninsured deposits, representing about 28.4% of total deposits as of March 31, 2024[4]. - Net available liquidity was $3.11 billion as of March 31, 2024, including $2.91 billion with the Federal Home Loan Bank[3]. - The company has access to $798.3 million in liquidity with the Federal Reserve Bank, with $700.0 million drawn upon[3]. - Total available liquidity reached $8,311,627,000, an increase from $5,774,260,000 in the previous quarter[57]. Loan Performance - Non-performing loans totaled $80.0 million as of March 31, 2024, with non-performing assets at $110.7 million[9]. - Non-performing loans to total loans increased to 0.55% as of March 31, 2024, compared to 0.44% at the end of Q4 2023[24]. - The yield on loans improved to 7.37% in Q1 2024, up from 7.20% in Q4 2023, with average loans increasing from $14.34 billion to $14.49 billion[21]. - The allowance for credit losses on loans was $290.3 million at March 31, 2024, representing 2.00% of total loans, consistent with the previous quarter[42]. - Provision for credit losses on loans was $5,500 thousand, down from $5,650 thousand in the previous quarter[34]. Interest Income and Expenses - Interest expense increased by approximately $71.7 million for Q1 2024 due to high interest rates[5]. - Net interest income for Q1 2024 was $205.5 million, an increase from $203.9 million in Q4 2023, driven by a $10.5 million rise in interest income[22]. - The net interest margin for Q1 2024 was 4.13%, slightly down from 4.17% in Q4 2023, impacted by approximately $500 million in excess liquidity[21]. - Total interest income for the quarter ended March 31, 2024, was $316,915,000, an increase from $284,939,000 in the same quarter last year, representing a growth of 11.2%[48]. - Net interest income after credit loss expense was $200,090,000, compared to $213,395,000 in the same quarter last year, reflecting a decrease of 6.2%[48]. Operational Efficiency - Non-interest expense for Q1 2024 totaled $111.5 million, with salaries and employee benefits accounting for $60.9 million[23]. - The efficiency ratio for Q1 2024 was 44.22%, with the adjusted efficiency ratio at 44.43%[23]. - Total other operating expenses decreased to $26,888 thousand from $39,673 thousand in the previous quarter, indicating improved cost management[33]. - Non-interest expenses were reduced by $3 million quarter over quarter, contributing to improved efficiency[61]. - The company is focusing on improving operational efficiency and reducing costs as indicated by the lower efficiency ratio and other operating expenses[33]. Asset Management - Total assets increased to $22,835,721 as of March 31, 2024, compared to $22,656,658 at December 31, 2023[39]. - Stockholders' equity rose to $3.81 billion at March 31, 2024, up from $3.79 billion at December 31, 2023, primarily due to a $63.9 million increase in retained earnings[25]. - Book value per share increased to $18.98 in Q1 2024 from $18.81 in Q4 2023[16]. - Tangible book value per common share rose to $18.98 as of March 31, 2024, compared to $18.81 at the end of the previous quarter[39]. - Total liabilities decreased slightly to $18,899,607 thousand from $19,126,263 thousand[36]. Market Outlook - Forward-looking statements indicate potential risks including economic conditions, credit quality, and regulatory changes[13]. - Management expressed optimism for the upcoming quarters, citing positive trends in net interest income, revenue, and liquidity[61].