STOCK TITAN

HOMB Takes Additional Hurricane Reserve Out of Abundance of Caution

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Negative)
Tags

Home BancShares (NYSE: HOMB) has announced an additional $16.7 million reserve for loan losses due to Hurricane Milton, bringing the total hurricane reserve to $33.4 million for the year. This follows an earlier $16.7 million reserve established for Hurricane Helene.

The company reports approximately $110 million currently on deferral due to both hurricanes. Hurricane Milton, which made landfall on October 9, 2024, caused more than two dozen tornados, while Hurricane Helene made landfall on September 26, 2024. The events span across the third and fourth quarters, with expected delays in insurance settlements due to the back-to-back nature of these events.

Home BancShares (NYSE: HOMB) ha annunciato una riserva aggiuntiva di 16,7 milioni di dollari per perdite sui prestiti a causa dell'Uragano Milton, portando la riserva totale per gli uragani a 33,4 milioni di dollari per l'anno. Questo segue una precedente riserva di 16,7 milioni di dollari stabilita per l'Uragano Helene.

L'azienda riporta circa 110 milioni di dollari attualmente in sospensione a causa degli entrambi gli uragani. L'Uragano Milton, che ha toccato terra il 9 ottobre 2024, ha causato più di due dozzine di tornado, mentre l'Uragano Helene ha toccato terra il 26 settembre 2024. Gli eventi si sono verificati nel terzo e quarto trimestre, con ritardi attesi nei regolamenti assicurativi a causa della sequenza ravvicinata di questi eventi.

Home BancShares (NYSE: HOMB) ha anunciado una reserva adicional de 16.7 millones de dólares para pérdidas en préstamos debido al Huracán Milton, llevando la reserva total por huracanes a 33.4 millones de dólares para el año. Esto sigue a una reserva anterior de 16.7 millones de dólares establecida para el Huracán Helene.

La empresa informa que actualmente hay aproximadamente 110 millones de dólares en aplazamiento debido a ambos huracanes. El Huracán Milton, que tocó tierra el 9 de octubre de 2024, causó más de dos docenas de tornados, mientras que el Huracán Helene tocó tierra el 26 de septiembre de 2024. Los eventos abarcan el tercer y cuarto trimestre, con retrasos esperados en los acuerdos de seguros debido a la naturaleza consecutiva de estos eventos.

홈 뱅크쉐어스 (NYSE: HOMB)허리케인 밀턴으로 인한 대출 손실을 위한 추가 1,670만 달러의 준비금을 발표하며, 올해의 허리케인 준비금 총액을 3,340만 달러로 늘렸습니다. 이는 허리케인 헬렌을 위해 설정된 이전의 1,670만 달러 준비금에 이어진 것입니다.

회사는 현재 두 허리케인으로 인해 약 1억 1천만 달러가 일시 중지 상태에 있다고 보고하였습니다. 2024년 10월 9일에 상륙한 허리케인 밀턴은 20개 이상의 토네이도를 발생시켰고, 허리케인 헬렌은 2024년 9월 26일에 상륙하였습니다. 이 사건들은 3분기와 4분기를 아우르며, 이러한 사건들이 연달아 발생함에 따라 보험 합의의 지연이 예상됩니다.

Home BancShares (NYSE: HOMB) a annoncé une réserve supplémentaire de 16,7 millions de dollars pour pertes sur prêts à cause de l'Ouragan Milton, portant la réserve totale pour ouragans à 33,4 millions de dollars pour l'année. Cela fait suite à une réserve précédente de 16,7 millions de dollars établie pour l'Ouragan Helene.

L'entreprise rapporte qu'environ 110 millions de dollars sont actuellement en attente en raison des deux ouragans. L'Ouragan Milton, qui a touché terre le 9 octobre 2024, a causé plus de deux douzaines de tornades, tandis que l'Ouragan Helene a touché terre le 26 septembre 2024. Les événements s'étalent sur le troisième et le quatrième trimestre, avec des retards attendus dans les règlements d'assurance en raison de la nature consécutive de ces événements.

Home BancShares (NYSE: HOMB) hat zusätzlich 16,7 Millionen US-Dollar für Kreditverluste aufgrund des Hurrikans Milton zurückgestellt, was die Gesamtrückstellung für Hurrikane in diesem Jahr auf 33,4 Millionen US-Dollar erhöht. Dies folgt auf eine frühere Rückstellung von 16,7 Millionen US-Dollar, die für den Hurrikan Helene eingerichtet wurde.

Das Unternehmen berichtet, dass derzeit etwa 110 Millionen US-Dollar aufgrund beider Hurrikane ausgesetzt sind. Der Hurrikan Milton, der am 9. Oktober 2024 auf Land traf, verursachte mehr als zwei Dutzend Tornados, während der Hurrikan Helene am 26. September 2024 auf Land traf. Die Ereignisse erstrecken sich über das dritte und vierte Quartal, wobei aufgrund der aufeinanderfolgenden Natur dieser Ereignisse mit Verzögerungen bei den Versicherungsleistungen zu rechnen ist.

Positive
  • Proactive risk management through establishment of reserves
  • Strong branch network presence across multiple states (218 total branches)
Negative
  • $33.4 million in total hurricane reserves impacting financial performance
  • $110 million in loans currently on deferral due to hurricane damage
  • Extended insurance settlement timelines likely to affect loan recovery periods

Insights

The additional $16.7 million loan loss reserve, bringing the total to $33.4 million, signals HOMB's conservative risk management approach but will impact Q4 earnings. With $110 million in loans currently on deferral due to hurricane damage, this preemptive measure provides a cushion against potential defaults while insurance claims are processed. The reserve represents approximately 30% of deferred loans, a relatively conservative coverage ratio. This prudent approach, while temporarily affecting profitability, strengthens the bank's resilience against natural disaster risks, particularly important given its significant Florida presence with 78 branches. The dual hurricane impact spanning Q3 and Q4 could create extended pressure on asset quality metrics, though the proactive reserving should help smooth out potential future losses.

The double-hurricane impact presents a complex risk scenario, with insurance claim processing likely to face delays due to the back-to-back nature of the events. The decision to match the initial reserve amount suggests systematic risk assessment rather than panic-driven provisioning. The $110 million in deferrals represents a manageable portion of HOMB's loan portfolio, but the extended timeline for insurance settlements could strain some borrowers' ability to resume regular payments. The bank's geographic diversification across five states helps mitigate the overall impact, though the concentration of branches in Florida (35% of total network) exposes it to continued hurricane risks. The preemptive reserving demonstrates strong risk governance and regulatory compliance.

CONWAY, Ark., Dec. 10, 2024 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NYSE: HOMB) (“Home” or “the Company”), and its wholly-owned subsidiary, Centennial Bank (“Centennial”), announced it has established additional reserves for loan losses as a result of Hurricane Milton.

On October 11, 2024, HOMB announced a $16.7 million reserve as a result of Hurricane Helene, which made landfall September 26, 2024. Upon announcement HOMB indicated the more recent and powerful Hurricane Milton, which made landfall on October 9, 2024, and caused the spin-off of more than two dozen tornados, would likely lead to an increase in this reserve amount.

“Out of an abundance of caution, HOMB has decided to make an additional $16.7 million reserve following the second Florida hurricane, bringing our total hurricane reserve to $33.4 million for the year,” said John Allison, Chairman of HOMB. “The two hurricanes spanned across the third and fourth quarter and the amount of time it takes for customers to settle with insurance will no doubt increase, with two back-to-back events,” continued Allison. “We have approximately $110 million currently on deferral as a result of the two hurricanes and in keeping with our conservative nature, we feel as though this proactive move is a prudent and predictable course of action,” added Allison.

Branches

The Company currently has 76 branches in Arkansas, 78 branches in Florida, 58 branches in Texas, 5 branches in Alabama and one branch in New York City.

About Home BancShares

Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, Texas, South Alabama and New York City. The Company’s common stock is traded through the New York Stock Exchange under the symbol “HOMB.” The Company was founded in 1998. Visit www.homebancshares.com or www.my100bank.com for more information.

General

This release contains forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future, including future financial results. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future events, performance or results. When we use words or phrases like “may,” “plan,” “propose,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,” “would,” “on track” and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risks and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors include, but are not limited to, the following: economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment, including the ongoing impacts of inflation; the ability to identify, complete and successfully integrate new acquisitions; the risk that expected cost savings and other benefits from acquisitions may not be fully realized or may take longer to realize than expected; diversion of management time on acquisition-related issues; the availability of and access to capital and liquidity on terms acceptable to us; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations; technological changes and cybersecurity risks and incidents; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability, military conflicts and other major domestic or international events; the impact of recent or future adverse weather events, including hurricanes, and other natural disasters; disruptions, uncertainties and related effects on credit quality, liquidity and other aspects of our business and operations that may result from any future public health crises; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; potential increases in deposit insurance assessments, increased regulatory scrutiny or market disruptions resulting from financial challenges in the banking industry; changes in the assumptions used in making the forward-looking statements; and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 26, 2024.

FOR MORE INFORMATION CONTACT:
Donna Townsell
Director of Investor Relations
Home BancShares, Inc.
(501) 328-4625


FAQ

How much did HOMB reserve for Hurricane Milton damages in 2024?

HOMB reserved an additional $16.7 million for Hurricane Milton damages, bringing their total hurricane reserve to $33.4 million for 2024.

What is the total amount of HOMB loans on deferral due to hurricanes in 2024?

HOMB reported approximately $110 million in loans currently on deferral as a result of the two hurricanes (Helene and Milton).

When did Hurricane Milton make landfall affecting HOMB operations?

Hurricane Milton made landfall on October 9, 2024, causing the spin-off of more than two dozen tornados.

How many branches does HOMB operate in Florida where the hurricanes hit?

HOMB operates 78 branches in Florida.

Home BancShares, Inc.

NYSE:HOMB

HOMB Rankings

HOMB Latest News

HOMB Stock Data

5.67B
184.15M
7.36%
69.97%
2.11%
Banks - Regional
State Commercial Banks
Link
United States of America
CONWAY