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Home BancShares Income Falls 9% in Q3

2 min read

Home Bancshares Inc. (NYSE: HOMB) of Conway on Thursday reported that net income fell 9.4% in the third quarter and deposits continued sliding as the bank navigated what CEO John Allison called a “tough economy.”

The parent company of Centennial Bank posted income of $98.5 million, down from $108.7 million in the same period last year. The decline was greater on an adjusted basis, with income falling nearly 16% to $94.7 million from $109.9 million a year ago.

Adjusted earnings per share came to 47 cents, down from 54 cents per share.

Still, the results met Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was also for earnings of 47 cents per share.

Net revenue in the third quarter totaled $245.4 million, down 4.3% from a year ago, falling just short of Wall Street forecasts. Three analysts surveyed by Zacks expected $245.5 million.

The bank’s net available liquidity shrunk on a quarterly basis from $6.61 billion to $6.12 billion, an amount that exceeds uninsured and uncollateralized deposits by $1.38 billion. The company has been limiting its exposure to uninsured deposits.

Total deposits in the quarter came to $16.52 billion, down nearly 11% from a year ago. Since Home BancShares acquired Happy Bancshares Inc. of Texas in the second quarter of 2022, deposits have fallen more than 15.7% from $19.6 billion.

Home Bancshares reported net interest margin of 4.19% in the third quarter, compared to 4.28% for the same period in 2022.

Loans in the quarter grew by 0.6% to $14.2 billion after declining for two consecutive quarters. Compared to the third quarter of 2022, loans were up 3.2%.

Total assets were $21.95 billion at the end of the quarter, down from $22.13 billion the year before.

The company currently has 76 branches in Arkansas, 78 branches in Florida, 63 branches in Texas, five branches in Alabama and one branch in New York City.

Shares of the company were down about 2% to $20.76 on Thursday morning. Year to date, shares were down about 7.5%.

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