Home BancShares Posts 'Stable' Q1 With Strong Profitability Despite Headwinds, RBC Says

MT Newswires Live04-17

Home BancShares (HOMB) reported a "stable" Q1, with strong execution driving peer-leading profitability despite modest headwinds, RBC Capital Markets said in a note Thursday.

The analysts said the company reported Q1 earnings per share of $0.60, in line with expectations.

"Overall, this was a stable quarter with paydowns driving a slight decline in period end loans though average balances were higher, manageable margin headwinds, and strong expense control," the analysts added.

Looking ahead, the analysts expect low levels of net charge-offs, stable margins, and controlled expenses. Management expects paydowns to offset loan growth in the near term, while the analysts see the Mountain Commerce acquisition supporting future pipelines.

Overall, the outlook remains consistent, with continued peer-leading profitability and an active, opportunistic share repurchase program, the analysts said, adding that they are maintaining earnings estimates for 2026 and 2027 at $2.50 and $2.60 per share, respectively.

RBC has a sector perform rating and a price target of $31 on Home BancShares.

Price: 27.07, Change: +0.33, Percent Change: +1.23

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