Home BancShares Inc. (HOMB, Financial) has announced an increase in its quarterly cash dividend, elevating it to 20 cents per share. This marks a 0.5 cent rise, or a 2.6% increase, compared to the previous dividend of 19.5 cents distributed in the first quarter of 2025.
The newly declared dividend is set to be paid on June 4 to all shareholders recorded by May 14. This increase underscores Home BancShares' commitment to returning value to its shareholders.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Home BancShares Inc (HOMB, Financial) is $32.00 with a high estimate of $35.00 and a low estimate of $28.00. The average target implies an upside of 16.24% from the current price of $27.53. More detailed estimate data can be found on the Home BancShares Inc (HOMB) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Home BancShares Inc's (HOMB, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Home BancShares Inc (HOMB, Financial) in one year is $27.59, suggesting a upside of 0.22% from the current price of $27.53. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Home BancShares Inc (HOMB) Summary page.
HOMB Key Business Developments
Release Date: April 17, 2025
- Earnings: $115.2 million, $0.58 per share; core earnings $111.9 million, $0.56 per share.
- Revenue: $260.1 million, up $13.1 million year-over-year.
- Net Interest Margin: 4.44%, up from 4.39% in Q4 2024.
- Net Interest Spread: Improved to 3.69% from 3.58% in December 2024.
- Loan Growth: Net loan growth of $187.6 million; total loans at $14.950 billion.
- Deposits: Increased by over $395 million to $17.5 billion.
- Loan-to-Deposit Ratio: Decreased to 85.24%.
- Nonperforming Loans: Improved to 0.60% from 0.67%.
- Capital Ratios: CET1 at 15.4%, leverage at 13.3%, total risk-based at 19.1%.
- Tangible Book Value: Increased to $13.15, up $1.86 year-over-year.
- Return on Tangible Common Equity: 18.39% for the quarter.
- Stock Buyback: Purchased approximately 1 million shares during the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Home BancShares Inc (HOMB, Financial) reported a record first quarter earnings of $115.2 million, or $0.58 per share, marking a significant breakout from previous quarters.
- The company set six new performance records, demonstrating strong capital, excessive loan loss reserves, excellent liquidity, good asset quality, and strong operating efficiencies.
- Net interest margin improved to 4.44% from 4.39% in the previous quarter, with a net interest spread increase of 11 basis points.
- Strong loan growth was reported, with a net increase of $187.6 million for the quarter, reaching a record level of loans at $14.950 billion.
- Deposits increased by over $395 million in Q1, taking the total to $17.5 billion, and the loan-to-deposit ratio decreased to 85.24%.
Negative Points
- The earnings were achieved during uncertain economic times, which could overshadow the positive results.
- The Texas lawsuit incurred a $2 million after-tax expense this quarter, although it is expected to be non-recurring in the future.
- Loan yields dropped on a linked quarter basis to 7.38% from 7.49%, indicating potential pressure on future margins.
- The CCFG portfolio declined by approximately $100 million, primarily in the commercial and industrial loan book.
- There is uncertainty in the market due to tariffs, which may impact borrower sentiment and slow down some projects.
