Home BancShares Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Home BancShares Inc. has filed its annual 10-K report for the fiscal year 2023, detailing its financial performance and operations.</b>

AI Summary

HOME BANCSHARES INC (HOMB) filed a Annual Report (10-K) with the SEC on February 26, 2024. Home BancShares Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is commercial banking. Home BancShares Inc. is incorporated in Arkansas (AR). The filing was submitted on February 26, 2024.

Why It Matters

For investors and stakeholders tracking HOME BANCSHARES INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Home BancShares Inc.'s financial health, operational strategies, and risk factors for the fiscal year 2023, which is crucial for investors to assess the company's performance and future outlook. As a commercial bank, understanding the details within this filing is essential for stakeholders to evaluate its asset quality, loan portfolio, deposit base, and regulatory compliance, all of which are key indicators in the banking sector.

Risk Assessment

Risk Level: medium — HOME BANCSHARES INC shows moderate risk based on this filing. The company operates in the highly regulated banking industry, which presents inherent risks related to economic downturns, interest rate fluctuations, and compliance requirements, as detailed in its 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Home BancShares Inc.'s performance and potential challenges in the current economic environment.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-26 — Filing Date (FILED AS OF DATE)
• 141 — Public Document Count (PUBLIC DOCUMENT COUNT)
• 001-41093 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• Home BancShares Inc. (company) — FILER
• AR (location) — STATE OF INCORPORATION
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240226 (date) — FILED AS OF DATE
• 0001331520 (company) — CENTRAL INDEX KEY
• 6022 (industry) — STANDARD INDUSTRIAL CLASSIFICATION
• 501-339-2929 (phone) — BUSINESS PHONE
• USD (currency) — iso4217:USD

FAQ

Risk Factors

• Regulatory Environment [medium — regulatory]: The company is subject to extensive regulation by federal and state banking authorities, which can impact its operations and profitability.
• Interest Rate Risk [medium — financial]: Changes in interest rates can affect the company's net interest income and the market value of its securities.
• Economic Conditions [medium — market]: Deterioration in general economic conditions, particularly in its primary markets, could adversely affect the company's financial performance.
• Cybersecurity Risks [medium — operational]: The company faces risks related to data security and cyberattacks, which could disrupt operations and damage its reputation.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-26: Filing Date — Date the 10-K was officially filed with the SEC.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share HOMB New York Stock Exchange
• $22.80 — orted on the New York Stock Exchange of $22.80. Indicate the number of shares outstan
• $10 billion — applies as a result of our having over $10 billion in total assets; legislation and regul
• $421.2 million — a cash purchase price of approximately $421.2 million. Like SPF, LH-Finance provides direct c
• $409.1 million — tion date, LH-Finance had approximately $409.1 million in total assets, including $407.4 milli
• $407.4 million — 09.1 million in total assets, including $407.4 million in total loans, which resulted in goodw
• $14.6 million — al loans, which resulted in goodwill of $14.6 million being recorded. The acquired portfolio
• $242.2 million — lub, the Company acquired approximately $242.2 million of yacht loans. This portfolio of loans
• $958.8 million — ts common stock valued at approximately $958.8 million as of April 1, 2022. In addition, the h
• $3.7 million — ock-based awards received approximately $3.7 million in cash in cancellation of such awards,
• $962.5 million — otal transaction value of approximately $962.5 million. Including the purchase accounting adj
• $6.69 billion — quisition date, Happy had approximately $6.69 billion in total assets, $3.65 billion in loans
• $3.65 billion — ximately $6.69 billion in total assets, $3.65 billion in loans and $5.86 billion in customer
• $5.86 billion — otal assets, $3.65 billion in loans and $5.86 billion in customer deposits. Happy formerly op
• $6.0 million — powered with lending authority of up to $6.0 million in their respective geographic areas. T

Filing Documents

• homb-20231231.htm (10-K) — 5930KB
• exhibit4220231231-10k.htm (EX-4.2) — 11KB
• exhibit21120231231-10k.htm (EX-21.1) — 9KB
• exhibit23120231231-10k.htm (EX-23.1) — 2KB
• homb-20231231x10kexx311.htm (EX-31.1) — 10KB
• homb-20231231x10kexx312.htm (EX-31.2) — 10KB
• homb-20231231x10kexx321.htm (EX-32.1) — 4KB
• homb-20231231x10kexx322.htm (EX-32.2) — 4KB
• exhibit971clawbackpolicy.htm (EX-97.1) — 21KB
• homb-20231231_g1.jpg (GRAPHIC) — 80KB
• 0001331520-24-000080.txt (&nbsp;) — 27251KB
• homb-20231231.xsd (EX-101.SCH) — 136KB
• homb-20231231_cal.xml (EX-101.CAL) — 228KB
• homb-20231231_def.xml (EX-101.DEF) — 717KB
• homb-20231231_lab.xml (EX-101.LAB) — 1505KB
• homb-20231231_pre.xml (EX-101.PRE) — 1057KB
• homb-20231231_htm.xml (XML) — 6406KB

Business

Business 5 - 23 Item 1A.

Risk Factors

Risk Factors 23 - 33 Item 1B. Unresolved Staff Comments 33 Item 1C. C ybersecurity 3 4 -36 Item 2.

Properties

Properties 36 Item 3.

Legal Proceedings

Legal Proceedings 36 Item 4. Mine Safety Disclosure 36 PART II: Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 36 -3 7 Item 6.

Selected Financial Data

Selected Financial Data 38 - 39 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operation

Management's Discussion and Analysis of Financial Condition and Results of Operation 40 - 88 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 89 - 90 Item 8. Consolidated Financial Statements and Supplementary Data 90 - 152 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 152 Item 9A.

Controls and Procedures

Controls and Procedures 152 -153 Item 9B. Other Information 153 PART III: Item 10. Directors, Executive Officers and Corporate Governance 153 Item 11.

Executive Compensation

Executive Compensation 153 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 153 Item 13. Certain Relationships and Related Transactions, and Director Independence 153 Item 14. Principal Accounting Fees and Services 154 PART IV: Item 15. Exhibits, Financial Statement Schedules 154 - 156 Item 16. Form 10-K Summary 156

Signatures

Signatures 157 Consent and Certifications After page 157 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Some of our statements contained in this document, including matters discussed under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operation," are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to expectations, beliefs, projections, future financial performance, future plans and strategies, and anticipated events or trends, and include statements about the competitiveness of the banking industry, potential regulatory obligations, our entrance and expansion into other markets, including through potential acquisitions, our other business strategies and other statements that are not historical facts. Forward-looking statements are not guarantees of performance or results. When we use words like "may," "plan," "contemplate," "anticipate," "believe," "intend," "continue," "expect," "project," "predict," "estimate," "could," "should," "would," and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. These forward-looking statements involve risks and uncertainties and are based on our beliefs and assumptions, and on the information available to us at the time that these disclosures were prepared. These forward-looking statements involve risks and uncertainties and may not be realized due to a variety of factors, including, but not limited to, the following: the effects of future local, regional, national and international economic conditions, including inflation or a decrease in commercial real estate and residential housing values; changes in the level of nonperforming assets and charge-offs, and credit risk generally; the risks of changes in interest rates or the l

BUSINESS

Item 1. BUSINESS Company Overview Home BancShares, Inc. ("Home BancShares") which may also be referred to in this document as "we," "us," "HBI" or the "Company") is a Conway, Arkansas headquartered bank holding company registered under the federal Bank Holding Company Act of 1956. The Company's common stock is traded through the New York Stock Exchange under the symbol "HOMB." We are primarily engaged in providing a broad range of commercial and retail banking and related financial services to businesses, real estate developers and investors, individuals and municipalities through our wholly owned community bank subsidiary – Centennial Bank. Centennial Bank has branch locations in Arkansas, Florida, Texas, South Alabama and New York City. Although the Company has a diversified loan portfolio, at December 31, 2023 and 2022, commercial real estate loans represented 56.7% and 56.3% of gross loans and 215.5% and 230.1% of total stockholders' equity, respectively. The Company's total assets, total deposits, total revenue and net income for each of the past three years are as follows: December 31, 2023 2022 2021 (In thousands) Total assets $ 22,656,658 $ 22,883,588 $ 18,052,138 Total deposits 16,787,711 17,938,783 14,260,570 Total revenue (net interest income plus non-interest income) 996,879 933,787 710,540 Net income 392,929 305,262 319,021 Home BancShares acquires, organizes and invests in community banks that serve attractive markets. Our community banking team is built around experienced bankers with strong local relationships. The Company was formed in 1998 by an investor group led by John W. Allison, our Chairman, and Robert H. "Bunny" Adcock, Jr., one of our directors. Since opening our first subsidiary bank in 1999, we have acquired and integrated a total of 23 banks with locations in Arkansas, Florida, Texas and Alabama, including 18 banks since 2010, seven of which we acquired through Federal Deposit Insurance Corporation ("FDIC") assisted transacti

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View this 10-K filing on SEC EDGAR