CONWAY, Ark., Jan. 21, 2026 (GLOBE NEWSWIRE) -- Home BancShares, Inc. (NYSE: HOMB), parent company of Centennial Bank, today announced that its Board of Directors has declared a regular $0.21 per share quarterly cash dividend payable March 4, 2026, to shareholders of record February 11, 2026. This cash dividend is consistent with the dividend paid during the fourth quarter of 2025. Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Ban ...

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Core Insights - Home BancShares reported a record year in 2025, with significant profit growth and strong profitability metrics, including a net profit of approximately $475 million, an 18.2% increase from 2024, and earnings per share (EPS) of $2.41, up about 20% [4][6] Financial Performance - The company achieved an adjusted return on assets of 2.05% and an adjusted diluted EPS of $0.60 for the fourth quarter [2] - The reported net interest margin (NIM) was 4.61%, up 5 basis points from the third quarter and 22 basis points year-over-year [2] - Full-year return on investment (ROI) was 2.05%, with an efficiency ratio of 41.29% [3][6] Loan Growth and Credit Quality - Fourth-quarter loan growth was reported at $400 million, with full-year loan growth of $922 million, representing a 6.24% increase [8] - Asset quality remained strong, with a decline in criticized assets and stable non-performing asset ratios [11] - The company noted competitive pressures in loan pricing, which could impact margins in 2026 [11] Capital Management and Share Repurchases - Home BancShares maintained a common equity tier 1 (CET1) ratio of 16.3% and total risk-based capital of 19.1% [15] - The company repurchased 2.89 million shares for $81.3 million during 2025, with additional repurchases planned in connection with the Mountain Commerce acquisition [16][17] Acquisition Strategy - The company filed regulatory applications to acquire Mountain Commerce Bank, which is expected to provide immediate benefits and expand operations into Tennessee [5][17] - Management expressed optimism about the acquisition, highlighting its "triple accretive" nature and potential for deposit growth [17][18]

Financial Data and Key Metrics Changes - For the full year of 2025, the company earned over $475 million in net profit, an 18.2% increase over 2024, with a return on assets (ROA) of 2.05% and an efficiency ratio of 41.29% [5][6] - The fourth quarter profit was reported at $118 million, an 18% increase from the previous year, with a net interest margin of 4.61% [6][7] - Earnings per share (EPS) for the year was $2.41, a 20% increase over 2024 [5] Business Line Data and Key Metrics Changes - Loan production for the fourth quarter exceeded $2.1 billion, with nearly $1.2 billion originating from the community bank footprint [17] - CCFG originated over $800 million in loan commitments in the fourth quarter, resulting in $236 million in net loan growth [25] - Total loan growth for the year was $922 million, representing a 6.24% increase [21] Market Data and Key Metrics Changes - Deposit balances improved by over $150 million in the fourth quarter, with total deposit costs at 1.91% [17] - Non-interest-bearing deposits comprised 22% of total deposits, indicating stable deposit growth [17] Company Strategy and Development Direction - The company announced an acquisition of Mountain Commerce Bank, which is expected to enhance its presence in Tennessee [7][18] - Management emphasized a focus on improving performance and avoiding dilution through acquisitions, advocating for stock buybacks instead [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, anticipating a strong performance in 2026, with a focus on maintaining high reserve levels [43][44] - The CEO highlighted the need for banks to improve their practices to regain investor confidence and avoid shareholder dilution [11][12] Other Important Information - The company reported a significant increase in capital levels, with common equity tier one capital at 16.3% and total risk-based capital at 19.1% [17] - Management noted that the efficiency ratio for the fourth quarter was 39.53%, indicating strong operational performance [17] Q&A Session Summary Question: What do you attribute the growth to for the quarter? - Management attributed growth to a combination of larger loans being fully funded and stable pipelines, with no significant changes in loan sizes or geography [36][38] Question: Is 190 enough for reserve levels considering stable credit quality? - Management indicated that a 2% reserve is preferred, and while current levels are sufficient, they remain cautious about future uncertainties [43] Question: How do you feel about deposit growth to fund loan opportunities? - Management expressed confidence in achieving mid-90% loan-to-deposit ratios, with optimism about deposit growth in Tennessee and Florida [51][52] Question: What are the expectations for multifamily loans? - Management noted that recent multifamily loans were driven by existing client relationships and market opportunities, with potential for continued growth in this sector [74][76] Question: How is the Texas franchise performing? - Management reported that the Texas operations are now performing as expected, with improvements in loan quality and growth [108]

Financial Data and Key Metrics Changes - For the full year of 2025, the company earned over $475 million in net profit, an 18.2% increase over 2024, with a return on investment (ROI) of 2.05% and an efficiency ratio of 41.29% [5][6] - The fourth quarter profit was reported at $118 million, an 18% increase from the previous year, with a net interest margin of 4.61% and a record revenue of $282.1 million [6][7] - Earnings per share (EPS) for the year was $2.41, reflecting a 20% increase over 2024 [5] Business Line Data and Key Metrics Changes - Loan production for the fourth quarter exceeded $2.1 billion, with nearly $1.2 billion originating from the community bank footprint, particularly $600 million from Florida [17] - CCFG originated over $800 million in loan commitments in the fourth quarter, resulting in $236 million in net loan growth, marking a 10% growth for the year [25] Market Data and Key Metrics Changes - Total deposit costs were reported at 1.91% in Q4, with deposit balances improving by over $150 million in the quarter and $334 million for the full year [17] - Non-interest-bearing balances remained stable, comprising 22% of total deposits [17] Company Strategy and Development Direction - The company announced an acquisition of Mountain Commerce Bank, which is expected to enhance its presence in the Tennessee market [7][18] - Management emphasized a focus on improving performance and avoiding dilution through acquisitions, advocating for stock buybacks instead [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, indicating that 2026 may be a good year for the company, with expectations of continued strong performance [39] - Concerns were raised about the overall banking industry's performance and the need for banks to avoid poor deals that dilute shareholder value [10][11] Other Important Information - The company purchased 2,890,706 shares for $81.3 million throughout the year, with 540,706 shares bought back in the fourth quarter alone [6][7] - The company maintained a common equity tier one capital ratio of 16.3% and total risk-based capital at 19.1% [17] Q&A Session Summary Question: What do you attribute the growth to for the quarter? - Kevin Hester attributed the growth to a mix of larger loans being fully funded and strong pipelines, with no significant changes in loan size or geography [34] Question: Are there any changes in the loan pricing environment? - Kevin Hester noted competitive pressures with some aggressive pricing in the market, but the company has navigated this well [58][59] Question: How do you view the reserve levels? - John Allison stated that a 2% reserve is preferred, and while the current reserve is sufficient, there is a willingness to increase it if opportunities arise [39] Question: What is the outlook for multifamily loans? - Christopher Poulton indicated that recent multifamily loans were driven by existing client relationships and market opportunities, with potential for continued growth in this area [70][71] Question: How is the Texas franchise performing? - John Allison reported that the Texas operations are now performing as expected, with improvements seen in the Dallas-Fort Worth and West Texas areas [102][103]

Financial Data and Key Metrics Changes - For the full year of 2025, the company earned over $475 million in net profit, an 18.2% increase over 2024, with a return on investment (ROI) of 2.05% and an efficiency ratio of 41.29% [4][5] - The fourth quarter profit was reported at $118 million, an 18% increase from the previous year, with a net interest margin of 4.61% and a return on tangible common equity (ROTCE) of 16.65% [5][15] - The company reported record revenue of $1.09 billion for the year, with earnings per share (EPS) of $2.41, a 20% increase over 2024 [4][5] Business Line Data and Key Metrics Changes - Loan production for the fourth quarter exceeded $2.1 billion, with nearly $1.2 billion originating from the community bank footprint, particularly $600 million from Florida [15][19] - CCFG originated over $800 million in loan commitments in the fourth quarter, resulting in $236 million in net loan growth, marking a 10% growth for the year [23] - Total loan growth for the year was $922 million, representing a 6.24% increase [19] Market Data and Key Metrics Changes - Deposit balances improved by over $150 million in the fourth quarter, with total deposit costs at 1.91% [16] - Non-interest-bearing deposits comprised 22% of total deposits, indicating stable growth in this area [16] Company Strategy and Development Direction - The company announced a letter of intent (LOI) with Mountain Commerce Bank, marking its entry into the Tennessee market, which is expected to be accretive from day one [5][6][17] - Management emphasized a focus on avoiding dilution through acquisitions and improving performance by buying back stock instead [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, indicating that 2026 may be a good year for the company, with expectations of continued strong performance [41] - The management acknowledged the challenges faced by the banking industry but highlighted the company's resilience and strong asset quality metrics [20][12] Other Important Information - The company purchased 2,890,706 shares for $81.3 million in 2025, with 540,706 shares bought back for $14.7 million in the fourth quarter [5][4] - The company maintained a common equity tier one capital ratio of 16.3% and total risk-based capital at 19.1% [16] Q&A Session Summary Question: What do you attribute the growth to for the quarter? - Management noted that the growth was driven by a combination of larger loans being fully funded and strong pipelines, with no significant changes in loan sizes or geography [35][36] Question: Is the reserve level of 190 sufficient considering stable credit quality? - Management indicated that they prefer to maintain a 2% reserve and are open to increasing it if opportunities arise, expressing confidence in the current reserve level [41][42] Question: How do you view the competitive pressures in loan pricing? - Management acknowledged that there are competitive pressures with some aggressive pricing in the market, but they believe their team is navigating this environment well [61][62] Question: What is the outlook for the Texas franchise? - Management reported that the Texas operations are performing as expected and are now growing, indicating improvements in the Dallas-Fort Worth and West Texas areas [106][108]

Core Viewpoint - Home BancShares, Inc. (HOMB) demonstrates strong financial performance with consistent earnings and revenue growth, positioning itself effectively within the regional banking sector [1][6]. Financial Performance - HOMB reported earnings per share (EPS) of $0.60, matching estimates, and achieved revenue of approximately $282.1 million, exceeding expectations of $272.5 million [2][6]. - The revenue figure represents a 9.2% increase from the previous year, surpassing the consensus estimate of $270.2 million, resulting in a positive surprise of 4.4% [2]. - The company's net income for the quarter ending December 31, 2025, was $118.2 million, translating to an EPS of $0.60 [4]. Growth Metrics - HOMB experienced $400 million in loan growth, contributing to an 18% year-over-year increase in income [3][6]. - The company maintains a sub-40% efficiency ratio, indicating strong operational efficiency [3][6]. Market Valuation - HOMB's market valuation includes a price-to-earnings (P/E) ratio of approximately 12.32 and a price-to-sales ratio of about 4.13 [5][6]. - The enterprise value to sales ratio is around 4.26, while the enterprise value to operating cash flow ratio is approximately 15.03 [5]. - The company has a debt-to-equity ratio of 0.23 and a current ratio of 0.14, reflecting a strong financial structure [5].

Core Insights - Home BancShares (HOMB) reported revenue of $282.09 million for Q4 2025, marking a year-over-year increase of 9.2% and exceeding the Zacks Consensus Estimate of $270.2 million by 4.4% [1] - The company's earnings per share (EPS) for the quarter was $0.60, up from $0.50 a year ago, aligning with the consensus EPS estimate [1] Financial Performance Metrics - Net Interest Margin (FTE) was reported at 4.6%, slightly above the estimated 4.5% by analysts [4] - The Efficiency Ratio stood at 39.5%, outperforming the average estimate of 41.6% [4] - Total non-performing loans amounted to $84.98 million, exceeding the average estimate of $78.32 million [4] - Average Balance of Total interest-earning assets was $20.13 billion, compared to the estimated $20.02 billion [4] - Total non-performing assets were reported at $124.81 million, higher than the average estimate of $120.45 million [4] - Net charge-offs to average total loans were at 0.1%, matching the average estimate [4] - Net Interest Income was $231.59 million, surpassing the average estimate of $225.19 million [4] - Total Non-Interest Income reached $50.5 million, exceeding the average estimate of $44.99 million [4] - Net Interest Income (FTE) was reported at $233.84 million, above the estimated $224.76 million [4] Stock Performance - Home BancShares shares have returned -2.2% over the past month, while the Zacks S&P 500 composite has increased by 2.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Financial Performance - Net income for Q4 2025 was $118.2 million, with an adjusted net income of $117.9 million, reflecting a year-over-year increase of 18% in annual income to $475.4 million[2][12] - Total revenue (net) reached $282.1 million in Q4 2025, up from $258.4 million in Q4 2024, demonstrating consistent quarterly growth throughout the year[3][6] - Diluted earnings per share (DEPS) for Q4 2025 was $0.60, consistent with the adjusted DEPS, marking a significant increase from $0.51 in Q4 2024[3][17] - Net income for the quarter was $118.2 million, down from $123.6 million in the previous quarter, with total net income for the year at $475.4 million[54] - GAAP net income available to common shareholders for the year ended December 31, 2025, was $475,441 thousand, an increase from $402,241 thousand in 2024, reflecting a growth of 18.2%[67] - Total pre-tax net income for Q4 2025 was $153,323,000, up from $129,454,000 in Q4 2024, marking a 18.4% increase[69] Operational Efficiency - The efficiency ratio improved to 39.54% in Q4 2025, indicating effective operational management, with a sub-40% efficiency ratio for the quarter[2][21] - The efficiency ratio improved to 39.54% for the quarter ended December 31, 2025, down from 42.74% in the previous year, indicating enhanced operational efficiency[59] - Non-interest expense for the quarter was $114.4 million, slightly down from $114.8 million in the previous quarter, with total non-interest expense for the year at $458.2 million[54] Loan and Deposit Growth - Loan growth for Q4 2025 was $400.2 million, contributing to total loans receivable of $15.69 billion, a record for the company[2][23] - The Company reported a $400.2 million increase in loans during Q4 2025, with organic loan growth of $164.3 million in community banking and $235.9 million in Centennial CFG, totaling $2.01 billion in loans as of December 31, 2025[24] - Total deposits increased to $17.48 billion at the end of Q4 2025, up from $17.33 billion at the end of Q3 2025[23] - Loans receivable reached $15,686,209 thousand, up from $14,764,500 thousand year-over-year, indicating an increase of about 6.25%[52] - Total deposits rose to $17,479,957 thousand, compared to $17,146,297 thousand in the previous year, marking an increase of approximately 1.94%[52] Asset Quality - Non-performing loans to total loans were 0.54% as of December 31, 2025, down from 0.56% at September 30, 2025, while non-performing assets to total assets also decreased from 0.56% to 0.55% in the same period[25] - The Company's allowance for credit losses on loans was $297.6 million at December 31, 2025, representing 1.90% of total loans, an increase from 1.87% at September 30, 2025[28] - Non-performing loans totaled $85.0 million and non-performing assets were $124.8 million as of December 31, 2025, showing a slight decrease from the previous quarter[28] Capital Management - The company maintained a common equity tier 1 capital ratio of 16.3% and a total risk-based capital ratio of 19.1% as of December 31, 2025[3][23] - Shareholders' equity increased by approximately $81.9 million to $4.30 billion at December 31, 2025, driven by a $77.0 million increase in retained earnings[29] - The book value per common share reached a record $21.88 at December 31, 2025, up from $21.41 at September 30, 2025[29] - The tangible book value per common share increased to $14.60 as of December 31, 2025, compared to $12.68 in 2024, representing a growth of 15.1%[56] Shareholder Returns - The Company repurchased 540,706 shares of common stock during Q4 2025, resulting in a shareholder buyback yield of 0.27%, compared to 0.18% in the previous quarter[31] - A cash dividend of $0.21 per share was declared, reflecting a 5.0% increase from the $0.20 dividend paid in Q3 2025[31] - The company reported a shareholder buyback yield of 1.46% for the year ended December 31, 2025, compared to 1.69% in 2024, indicating a slight decrease in buyback activity[56] Acquisition Plans - The company is set to acquire Mountain Commerce Bancshares, Inc. and its bank subsidiary, with the transaction expected to close in the first half of 2026, pending necessary approvals[35] - The company is in the process of acquiring MCBI, with potential risks including regulatory approvals and integration challenges[45] - The proposed acquisition may incur higher costs than anticipated, influenced by various economic factors[45] - The company anticipates that the benefits from the acquisition may take longer to realize than expected due to market conditions[45] - The company continues to focus on integrating its operations and exploring additional acquisition opportunities to enhance growth[45] Interest Income and Expense - Total interest income for the quarter was $323.6 million, slightly up from $323.5 million in the previous quarter, while total interest income for the year reached $1.3 billion[54] - Net interest income after credit loss expense was $231.6 million for the quarter, compared to $226.2 million in the previous quarter, with a total of $892.4 million for the year[54] - Total interest expense for the quarter was $92.0 million, compared to $97.4 million in the previous quarter, with total interest expense for the year at $386.5 million[54] - The company reported a net interest spread of 3.77% for 2025, up from 3.43% in 2024, indicating better profitability on interest-earning assets[65] Market Performance - Market capitalization at the beginning of Q4 2025 was $5,571,959 thousand, slightly down from $5,613,422 thousand in Q3 2025[73] - The price per share at the beginning of Q4 2025 was $28.30, compared to $28.46 in Q3 2025[73]

Core Insights - Home BancShares, Inc. reported a record annual income of $475.4 million for 2025, driven by strong fourth-quarter results, including a sub-40% efficiency ratio and $400.2 million in loan growth [4][16]. Quarterly Highlights - Net income for Q4 2025 was $118.2 million, slightly down from $123.6 million in Q3 2025, while adjusted net income was $117.9 million [3][20]. - Total revenue (net) reached $282.1 million in Q4 2025, up from $277.7 million in Q3 2025 [3][8]. - Pre-tax, pre-provision, net income (PPNR) for Q4 2025 was $167.1 million, reflecting consistent growth throughout the year [3][6]. Financial Performance Trends - Net income increased from $305.3 million in 2022 to $475.4 million in 2025, marking an 18% year-over-year increase [16]. - Diluted earnings per share rose from $1.57 in 2022 to $2.41 in 2025, a 53% increase [17]. - The efficiency ratio improved to 39.54% in Q4 2025, indicating enhanced operational efficiency [25]. Financial Condition - Total loans receivable reached a record $15.69 billion at December 31, 2025, up from $15.29 billion at September 30, 2025 [27]. - Total deposits increased to $17.48 billion at December 31, 2025, compared to $17.33 billion at September 30, 2025 [27]. - Shareholders' equity rose to $4.30 billion at December 31, 2025, reflecting a $81.9 million increase from the previous quarter [32]. Stock Repurchases and Dividends - The company repurchased 540,706 shares during Q4 2025, resulting in a shareholder buyback yield of 0.27% [34]. - A cash dividend of $0.21 per share was declared, representing a 5% increase from the previous quarter [35]. Acquisition - The acquisition of Mountain Commerce Bancshares, Inc. is expected to close in the first half of 2026, pending necessary approvals [39].