SA News • Wed, Oct. 22
From other sites
at MarketWatch.com (Jun 26, 2013)
at MarketWatch.com (May 27, 2013)
at MarketWatch.com (Jan 4, 2011)
at CNBC.com (Jul 13, 2010)
at MarketWatch.com (Jul 1, 2010)
There are 3 articles on this stock available only to PRO subscribers.
- Home BancShares is an expensive bank (P/TBV=4 and PE=30) that trades at historically high valuations, which do not seem to be justified by growth rates.
- Growth through acquisitions strategy has resulted in modest BV gains.
- As management plans to continue the M&A streak, possibility of further value creation is uncertain.
Home BancShares: Efficiently Taking M&A To A New Level
- Home Bancshares has a history of successful acquisitions.
- The bank's purchase of Liberty Bank could accelerate earnings growth beyond expectations.
- Another acquisition should occur this year.
Home Bancshares: 30% Upside For This Bank M&A King
Home BancShares Inc. Q3 2009 Earnings Call TranscriptOct. 15, 2009
Home BancShares, Inc. Q3 2008 Earnings Call TranscriptOct. 16, 2008
Home BancShares, Inc. Q2 2008 Earnings Call TranscriptJul. 17, 2008
Home BancShares, Inc. Q1 2008 Earnings Call TranscriptApr. 17, 2008
Home BancShares Q4 2007 Earnings Call TranscriptJan. 22, 2008
Home BancShares Q3 2007 Earnings Call TranscriptOct. 18, 2007
Wed, Oct. 22, 5:39 PM
Thu, Oct. 16, 1:45 PM
- Core EPS of 0.45, excl. $3.8M merger expenses.
- Total Revenue rose 61% y/y to $94.23M due to 69.6% increase in net interest income to $78.6M.
- NIM of 5.26% down 24bps from 2Q14
- Core efficiency ratio 41.88% vs. 41.56% in 2Q14
- ROA excl. merger expenses 1.69%
- Conference call today at 2:00 PM ET. Webcast here.
- HOMB +5.5%.
- Previously: Home BancShares EPS in-line, misses on revenue
Thu, Oct. 16, 9:19 AM
Wed, Oct. 15, 5:30 PM
Mon, Jul. 21, 10:27 AM
Thu, Jul. 17, 9:31 AM
Fri, May. 16, 11:56 AM
- Raymond James upgrades Bank of the Ozarks (OZRK -0.2%) to Outperform with $67 PT.
- Home Bancshares (HOMB +1.8%) is boosted to a Buy at both KBW and Drexel Hamilton
- Credit Suisse upgrades NASDAQ OMX (NDAQ -0.6%) to Buy with $42 PT.
- Bank of America boosts Protective Life (PL +0.1%) to Buy and sets a $62 PT.
- KBW upgrades Stonegate Mortgage (SGM +4.4%) to Outperform with $17 PT after the company reported earnings yesterday.
- Bank of America downgrades Assurant (AIZ -1.3%) to Under Perform with a $73 PT.
Thu, May. 8, 2:40 PM
- Trustmark (TRMK) started at Hold.
- Texas Capital Bancshares (TCBI) started at Buy.
- Renasant (RNST) started at Buy.
- Provident Financial Services (PFS) started at Buy.
- National Penn Bancshares (NPBC) started at Hold.
- Independent Bank (INDB) started at Buy.
- Home Bancshares (HOMB) started at Hold.
- Hancock Holding (HBHC) started at Buy.
- Fulton Financial (FULT) started at Hold.
- Commerce Bancshares (CBSH) started at Buy.
- BankUnited (BKU) started at Buy.
- BancorpSouth (BXS) started at Hold.
Wed, Apr. 23, 5:41 PM
Thu, Apr. 17, 9:19 AM
Tue, Mar. 4, 10:47 AM
- The fast pace of smaller bank roll-ups looks set to take a pause as acquirers shy away from higher prices and instead focus on integrating recent purchases. Deal prices this year have climbed to an average of 136.8% of TBV vs. 128.7% in 2013 and 120.3% in 2012, according to SNL Financial.
- Of course, higher stock prices make it easier to pay, with SNL's Bank & Thrift Index now trading near 170% of TBV from 145% about a year earlier.
- Speaking at a recent conference, BankUnited (BKU +1.9%)CEO John Kanas says a strong currency is of little use if the target bank can't grow its business at the same multiple as his bank. Further, any buyer should be prepared to spend a year distracted with regulators.
- Still on the hunt, Home BancShares (HOMB +3.3%) CEO Randy Sims takes note of frothy seller expectations, noting a number of deals where the seller has baked in 50% growth into its asking price.
- Hancock Holdings (HBHC +3.1%) chief Carl Chaney agrees prices are rising, but so too is the quality of the books he's looking at.
- Trustmark (TRMK +3.7%) CEO Gerard Host says growth is necessary now that the bank's passed $10B in assets and faces a whole host of new regulations and costs. "We're going to have to pay to do the deals we want to do ... It's not just about money."
- Old National Bancorp (ONB +2.5%) CEO Bob Jones says he spends nearly 20% of his time talking to CEOs and boards of potential targets and these things take time. The recently closed purchase of Tower Financial, he says, was 10 years in the making.
- Also presenting: BXS, FFCH, UBSH, PB
Fri, Feb. 14, 7:25 AM
- HOMB has been relatively quiet on the acquisition front since last summer, says Wunderlich's Kevin Reynolds, instead focusing its energies on integrating the purchase of Liberty Bancshares. But with initial results coming in ahead of schedule, HOMB will soon be getting off the sidelines maybe as soon as this quarter and could add $3 per share in incremental value.
- "Our analysis assumes that HOMB will acquire the average FL target ($1.75 billion in assets) for 1.6x TBV in a 75% stock/25% cash transaction. Further assuming that HOMB achieves a 1.00% ROAA within two to three years yields incremental EPS between $0.20 and $0.30 per share. Valuing this at an LTM P/E multiple of 15x (vs. 20x LTM EPS for Southern peers) suggests incremental value added of $3/share or more to HOMB shareholders."
- He upgrades from Hold to Buy with new price target of $38.
Wed, Jan. 22, 6:50 PM
Nov. 19, 2013, 12:50 PM
- Regional bank stocks face plenty of challenges after big moves higher this year while loan growth and margins haven't really kept up, but Stephens' Matt Olney says the tailwinds of higher interest rates, continued expense cuts, and more M&A activity are on the way.
- For the expense management theme, BancorpSouth (BXS +0.3%) is a favorite as a new management team moves in - specifically CEO James Rollins who comes over from the "very efficient" Prosperity Bancshares (PB -0.1%).
- In M&A, those best positioned as acquirers are Home Bancshares (HOMB -0.3%), Bank of the Ozarks (OZRK +0.3%), Renasant Corp. (RNST +0.8%), Hilltop Holdings (HTH -1.1%), and First Financial Bancshares (FFIN +0.7%). The management team at HOMB is particularly noteworthy as the management team's "been acquiring banks their whole career and they know how to do it," and the valuation at 4x tangible book gives them valuable currency.
- How about acquirees? The midtier banks aren't yet ready to sell he says, and most of the names being acquired are small, private ones.
- Texas is a favorite area for growth and the pick there (in addition to Hilltop) is Texas Capital Bancshares (TCBI -0.2%) for its exposure to the energy sector.
- Newly added to Olney's Buy list is Pittsburgh's Tristate Capital (TSC -0.5%) at 1.2x tangible equity with the unique kicker of a wealth management division being leveraged to generate loan growth.
- Regional bank ETF: KRE
Oct. 24, 2013, 5:23 PM
Oct. 17, 2013, 9:21 AM
HOMB vs. ETF Alternatives
Home BancShares, Inc., through its wholly owned community bank subsidiary, Centennial Bank provides commercial and retail banking and related financial services to businesses, real estate developers and investors, individuals and municipalities.
Other News & PR