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Unpacking Q3 Earnings: Home Bancshares (NYSE:HOMB) In The Context Of Other Regional Banks Stocks

HOMB Cover Image

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Home Bancshares (NYSE: HOMB) and the best and worst performers in the regional banks industry.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Luckily, regional banks stocks have performed well with share prices up 10.8% on average since the latest earnings results.

Home Bancshares (NYSE: HOMB)

Founded in Conway, Arkansas in 1998 and growing through strategic acquisitions across the Southeast, Home Bancshares (NYSE: HOMB) operates as the bank holding company for Centennial Bank, providing commercial and retail banking services to businesses and individuals across multiple states.

Home Bancshares reported revenues of $275.5 million, up 6.3% year on year. This print exceeded analysts’ expectations by 1.6%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ tangible book value per share estimates but a narrow beat of analysts’ EPS estimates.

Home Bancshares Total Revenue

Interestingly, the stock is up 4.8% since reporting and currently trades at $28.76.

Is now the time to buy Home Bancshares? Access our full analysis of the earnings results here, it’s free.

Best Q3: Customers Bancorp (NYSE: CUBI)

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE: CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

Customers Bancorp Total Revenue

The market seems happy with the results as the stock is up 23.6% since reporting. It currently trades at $81.

Is now the time to buy Customers Bancorp? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: The Bancorp (NASDAQ: TBBK)

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ: TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9% since the results and currently trades at $70.27.

Read our full analysis of The Bancorp’s results here.

Independent Bank (NASDAQ: INDB)

Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. (NASDAQ: INDB) operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.

Independent Bank reported revenues of $243.7 million, up 39.1% year on year. This print met analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced an impressive beat of analysts’ tangible book value per share estimates but a narrow beat of analysts’ EPS estimates.

The stock is up 18.3% since reporting and currently trades at $76.19.

Read our full, actionable report on Independent Bank here, it’s free.

Hilltop Holdings (NYSE: HTH)

Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings (NYSE: HTH) is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services.

Hilltop Holdings reported revenues of $331.1 million, up 7.8% year on year. This number beat analysts’ expectations by 6.6%. Overall, it was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 8.3% since reporting and currently trades at $35.12.

Read our full, actionable report on Hilltop Holdings here, it’s free.


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