Quarterly income, revenue down for Home BancShares

Home BancShares posted second quarter net income of $101.5 million, down 3.6% from the $105.3 million in the same quarter of 2023. Earnings per share of 51 cents beat the consensus estimate of 49 cents.

Adjusted earnings per share was 52 cents after accounting for a $2.3 million one-time FDIC special assessment to recover losses associated with protecting uninsured depositors following the closures of Silicon Valley Bank of California and Signature Bank of New York.

After one-time adjustments, 2024 second quarter net income was $103.916 million compared to $102.588 million a year ago.

The Conway-based bank, which is the parent company of Centennial Bank, on Wednesday (July 17) reported total revenue in the quarter of $254.6 million, down from the $257.3 million in the same period of 2023, but above the consensus estimate of $247.21 million.

Home BancShares net income in the first half of 2024 was $201.639 million, below the $208.283 million in the same period of 2023. Total revenue in the first half was $500.985 million, down from $505.911 million in the same period of 2023.

“In the second quarter, HOMB saw profitable loan growth and a lower efficiency ratio, while overcoming the additional $2.3 million of FDIC special assessment,” Board Chair John Allison noted in the earnings report. “We hit record highs for book value per common share of $19.30 and tangible book value per common share of $12.08. It was a great quarter with adjusted earnings, quarter over quarter, exceeding a great year in 2023.”

The bank posted non-interest income of $42.774 million in the quarter, down from $49.509 million in the same quarter of 2023. Second quarter non-interest income included $10.7 million from other service charges and fees, $9.7 million from service charges on deposit accounts, $6.7 million from other income, and $4.7 million from trust fees, the bank reported.

Non-performing loans as of June 30, 2024 were $16.2 million, $39.1 million, $24.7 million, $399,000, $3.1 million and $2.8 million in the Arkansas, Florida, Texas, Alabama, Shore Premier Finance and Centennial CFG markets, respectively, for a total of $86.3 million. The bank reported $267.8 million in loan growth in the second quarter.

Following are other financial items from the quarterly report.
• Total assets as of June 30 reached $22.919 billion, up from the $22.126 billion at the same period in 2023.

• Total loans receivable as of June 30 were $14.781 billion, up from the $14.181 billion at the same period in 2023.

• Total deposits as of June 30 were $16.955 billion, up from the $16.996 billion at the same period in 2023.

• The return on assets as of June 30 was 1.79%, down from 1.9% at the same period in 2023.

Founded in 1999, Home BancShares has 76 branches in Arkansas, 78 branches in Florida, 63 branches in Texas, 5 branches in Alabama and one branch in New York City. Shares of Home BancShares (NASDAQ: HOMB) closed Wednesday at $26.80, up 15 cents During the past 52 weeks, the share price has ranged between $26.99 and $19.61.