Consistency, Strength & Earnings Power Remain the Story at HOMB

Core Points - Home BancShares, Inc. reported record quarterly earnings with net income of $118.4 million and diluted earnings per share of $0.60 for Q2 2025 [3][8] - The company achieved total revenue of $271.0 million for the quarter, an increase from $260.1 million in Q1 2025 [2] - The net interest margin remained stable at 4.44%, with an increase in average loans from $14.89 billion to $15.06 billion [9][11] Financial Performance - Net income for Q2 2025 was $118.4 million, up from $115.2 million in Q1 2025 [2][8] - Adjusted net income was $114.6 million, with diluted earnings per share adjusted to $0.58 [8] - Total revenue increased to $271.0 million from $260.1 million in the previous quarter [2] Operating Metrics - The company’s efficiency ratio was 41.68%, indicating effective cost management [13] - Return on assets (ROA) improved to 2.08% from 2.07% in the previous quarter [2] - Return on equity (ROE) was reported at 11.77%, slightly up from 11.75% in Q1 2025 [2] Capital and Shareholder Returns - The company repurchased 1.0 million shares during Q2 2025, resulting in a shareholder buyback yield of 0.49% [5][6] - A cash dividend of $0.20 per share was declared, representing a 2.6% increase from the previous quarter [6] - Book value per share increased to $20.71 from $20.40 in Q1 2025 [21] Loan and Asset Quality - Total loans receivable reached a record $15.18 billion, up from $14.95 billion in Q1 2025 [15] - Non-performing loans to total loans were 0.63%, slightly up from 0.60% in the previous quarter [17] - The allowance for credit losses on loans was $281.9 million, or 1.86% of total loans [20] Non-Interest Income and Expenses - Non-interest income for Q2 2025 was $51.1 million, with significant contributions from service charges and other income [12] - Non-interest expenses totaled $116.0 million, with salaries and employee benefits being the largest component at $64.3 million [13]