Home Bancshares, Inc. (NYSE: HOMB) has announced additional reserves for loan losses related to Hurricane Helene FEMA disaster area for the third quarter of 2024. As a result of Hurricane Helene, the company recorded additional loan loss reserves of approximately $16.7 million. The company has also mentioned that it will be evaluating the impact of Hurricane Milton, which made landfall on October 9, 2024, and may result in a substantial increase in hurricane-related loan reserves for the fourth quarter.
Home Bancshares currently operates 76 branches in Arkansas, 78 branches in Florida, 58 branches in Texas, 5 branches in Alabama, and one branch in New York City.
The company's common stock is traded through the New York Stock Exchange under the symbol "HOMB." Home Bancshares, Inc. was founded in 1998.
These developments come in the wake of Hurricane Helene making landfall on September 26, 2024, as a category 4 hurricane, causing widespread devastation. The company stated that it will take time to get clarity from customers on damages incurred, needed deferrals, or potential losses on a little over $1 billion worth of loans in the path of the storm.
John Allison, Chairman of Home Bancshares, mentioned, "We always like to get out in front and be prepared for events like this, and I’m proud that we have the strength in our balance sheet to prepare for unfortunate events such as this."
It's essential to note that the impact of Hurricane Milton, which crossed the state of Florida, is also being assessed, and the company is bracing for potential effects on its loan reserves for the fourth quarter.
This announcement reflects the company's proactive approach to addressing the financial implications of natural disasters, especially in regions where it has a significant presence. The market has reacted to these announcements by moving the company's shares 2.7% to a price of $26.96. For more information, read the company's full 8-K submission here.
