# HOME BANCSHARES INC (HOMB) Informational only - not investment advice. CIK: 0001331520 SIC: 6022 State Commercial Banks SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6022 State Commercial Banks](/industry/6022/) Latest 10-K filed: 2026-02-27 SEC page: https://www.sec.gov/edgar/browse/?CIK=1331520 Filing source: https://www.sec.gov/Archives/edgar/data/1331520/000133152026000051/homb-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0001331520-26-000051 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001331520.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 1,278,820,000 USD | 2025 | verified | | Net income | 475,441,000 USD | 2025 | verified | | Assets | 22,881,879,000 USD | 2025 | verified | | Free cash flow | 377,016,000 USD | 2025 | computed | | Net margin | 37.18% | 2025 | computed | | Revenue YoY | -1.61% | 2025 | computed | | ROE | 11.06% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | HOMB | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 37.2% | 21.9% | 97 | 149 | | Revenue growth | -1.6% | 6.0% | 16 | 148 | | FCF margin | 29.5% | 23.8% | 74 | 133 | | ROE | 11.1% | 9.6% | 63 | 149 | | ROA | 2.1% | 1.1% | 99 | 149 | | Liabilities / equity | 4.33 | 8.04 | 2 | 149 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6022 State Commercial Banks, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1278820000 | USD | 2025 | 2026-02-27 | | Net income | 475441000 | USD | 2025 | 2026-02-27 | | Assets | 22881879000 | USD | 2025 | 2026-02-27 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001331520.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | | | 436,537,000 | 520,251,000 | 685,368,000 | 717,988,000 | 675,962,000 | 625,171,000 | 877,766,000 | 1,175,053,000 | 1,299,777,000 | 1,278,820,000 | | Net income | 26,806,000 | 17,591,000 | 54,741,000 | 63,022,000 | 66,520,000 | 113,063,000 | | | | | | | | 392,929,000 | 402,241,000 | 475,441,000 | | Diluted EPS | | | | | | | 1.26 | 0.89 | 1.73 | 1.73 | 1.30 | 1.94 | 1.57 | 1.94 | 2.01 | 2.41 | | Operating cash flow | | | | | | | 175,701,000 | 140,071,000 | 303,902,000 | 247,415,000 | 291,728,000 | 389,380,000 | 413,172,000 | 379,670,000 | 460,646,000 | 399,281,000 | | Capital expenditures | | | | | | | 3,082,000 | 5,191,000 | 7,950,000 | 14,898,000 | 11,547,000 | 10,282,000 | 19,579,000 | 22,465,000 | 38,531,000 | 22,265,000 | | Dividends paid | | | | | | | 48,096,000 | 60,373,000 | 79,867,000 | 85,627,000 | 87,677,000 | 92,142,000 | 128,424,000 | 145,904,000 | 150,003,000 | 158,920,000 | | Share buybacks | | | | | | | 9,817,000 | 20,825,000 | 104,276,000 | 84,888,000 | 25,690,000 | 44,480,000 | 70,856,000 | 48,771,000 | 86,493,000 | 82,220,000 | | Assets | | | | | | | 9,808,465,000 | 14,449,760,000 | 15,302,438,000 | 15,032,047,000 | 16,398,804,000 | 18,052,138,000 | 22,883,588,000 | 22,656,658,000 | 22,490,748,000 | 22,881,879,000 | | Liabilities | | | | | | | 8,480,975,000 | 12,245,469,000 | 12,952,552,000 | 12,520,516,000 | 13,793,046,000 | 15,286,417,000 | 19,357,226,000 | 18,865,583,000 | 18,529,723,000 | 18,585,008,000 | | Stockholders' equity | | | | | | | 1,327,490,000 | 2,204,291,000 | 2,349,886,000 | 2,511,531,000 | 2,605,758,000 | 2,765,721,000 | 3,526,362,000 | 3,791,075,000 | 3,961,025,000 | 4,296,871,000 | | Cash and cash equivalents | | | | | | | 216,649,000 | 635,933,000 | 657,939,000 | 490,601,000 | 1,263,788,000 | 3,650,315,000 | 724,790,000 | 1,000,213,000 | 910,347,000 | 667,337,000 | | Free cash flow | | | | | | | 172,619,000 | 134,880,000 | 295,952,000 | 232,517,000 | 280,181,000 | 379,098,000 | 393,593,000 | 357,205,000 | 422,115,000 | 377,016,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | | | | | | | | | | 33.44% | 30.95% | 37.18% | | Return on equity | | | | | | | | | | | | | | 10.36% | 10.15% | 11.06% | | Return on assets | | | | | | | | | | | | | | 1.73% | 1.79% | 2.08% | | Liabilities / equity | | | | | | | 6.39 | 5.56 | 5.51 | 4.99 | 5.29 | 5.53 | 5.49 | 4.98 | 4.68 | 4.33 | ## As-reported value updates 2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/HOMB/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001331520.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.53 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.51 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.52 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | 105,271,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 294,262,000 | | 0.49 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 306,220,000 | 86,243,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 316,915,000 | 100,109,000 | 0.50 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | 100,109,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 327,303,000 | | 0.51 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | 101,530,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 332,845,000 | | 0.50 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 322,714,000 | 100,564,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 312,542,000 | 115,209,000 | 0.58 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 319,115,000 | 118,403,000 | 0.60 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 323,532,000 | 123,604,000 | 0.63 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 323,631,000 | 118,225,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 311,023,000 | 118,209,000 | 0.60 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 336,836,000 | 119,327,000 | 0.59 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from HOMB's latest 10-K: [/company/HOMB/business/](/company/HOMB/business/). ## Risk Factors Verbatim Item 1A Risk Factors from HOMB's latest 10-K: [/company/HOMB/risk-factors/](/company/HOMB/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1331520/000133152026000112/homb-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-08-07 Report date: 2026-06-30 Item 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with our Form 10-K, filed with the Securities and Exchange Commission on February 27, 2026, which includes the audited financial statements for the year ended December 31, 2025. Unless the context requires otherwise, the terms "Company," "us," "we," and "our" refer to Home BancShares, Inc. on a consolidated basis. General We are a bank holding company headquartered in Conway, Arkansas, offering a broad array of financial services through our wholly-owned bank subsidiary, Centennial Bank (sometimes referred to as "Centennial" or the "Bank"). As of June 30, 2026, we had, on a consolidated basis, total assets of $24.71 billion, loans receivable, net of allowance for credit losses, of $16.80 billion, total deposits of $19.11 billion, and stockholders’ equity of $4.55 billion. We generate the majority of our revenue from interest on loans and investments, service charges, and mortgage banking income. Deposits and Federal Home Loan Bank ("FHLB") and other borrowed funds are our primary sources of funding. Our largest expenses are interest on our funding sources, salaries and related employee benefits and occupancy and equipment. We measure our performance by calculating our return on average common equity, return on average assets and net interest margin. We also measure our performance by our efficiency ratio, which is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income. The efficiency ratio, as adjusted, is a non-GAAP measure and is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income excluding adjustments such as merger and acquisition expenses and/or certain gains, losses and other non-interest income and expenses. Table 1: Key Financial Measures [[GREPCENT_TABLE]] [["","As of or for the Three Months Ended June 30,","","As of or for the Six Months Ended June 30,"],["","2026","","2025","","2026","","2025"],["","(Dollars in thousands, except per share data)"],["Total assets","$","24,713,248","","$","22,907,022","","$","24,713,248","","$","22,907,022"],["Loans receivable","17,127,208","","15,180,624","","17,127,208","","15,180,624"],["Allowance for credit losses","(328,369)","","(281,869)","","(328,369)","","(281,869)"],["Total deposits","19,113,105","","17,488,432","","19,113,105","","17,488,432"],["Total stockholders\u2019 equity","4,547,435","","4,085,316","","4,547,435","","4,085,316"],["Net income","119,327","","118,403","","237,536","","233,612"],["Basic earnings per share","0.59","","0.60","","1.19","","1.18"],["Diluted earnings per share","0.59","","0.60","","1.19","","1.18"],["Book value per share","22.68","","20.71","","22.68","","20.71"],["Tangible book value per share (non-GAAP)(1)","15.32","","13.44","","15.32","","13.44"],["Annualized net interest margin - FTE","4.51%","","4.44%","","4.51%","","4.44%"],["Efficiency ratio","44.54","","41.68","","43.14","","41.94"],["Efficiency ratio, as adjusted (non-GAAP)(2)","40.46","","42.01","","41.19","","42.42"],["Return on average assets","1.95","","2.08","","2.02","","2.08"],["Return on average common equity","10.55","","11.77","","10.78","","11.76"]] [[/GREPCENT_TABLE]] (1)See Table 25 for the non-GAAP tabular reconciliation. (2)See Table 29 for the non-GAAP tabular reconciliation. 59 Table of Contents Overview Results of Operations for the Three Months Ended June 30, 2026 and 2025 Our net income increased $924,000, or 0.8%, to $119.3 million for the three-month period ended June 30, 2026, from $118.4 million for the same period in 2025. On a diluted earnings per share basis, our earnings were $0.59 per share for the three-month period ended June 30, 2026 compared to $0.60 per share for the three-month period ended June 30, 2025. During the three months ended June 30, 2026, the Company recorded $5.2 million in provision for credit losses on loans. Also, during the three months ended June 30, 2026, the Company recorded $274,000 in BOLI death benefit income, $817,000 in income from the fair value adjustment for marketable securities and $12.7 million in merger and acquisition expense due to the completion of the previously announced acquisition of Mountain Commerce Bancorp, Inc ("MCBI") during the second quarter of 2026. The merger and acquisition expense reduced earnings per share by $0.05 per share for the three-month period ended June 30, 2026. Total interest income increased $17.7 million, or 5.6%, total interest expense decreased $4.0 million, or 4.0% and non-interest income increased $2.4 million, or 4.6%. This was partially offset by a $19.5 million, or 16.8%, increase in non-interest expense. The increase in interest income resulted from a $22.0 million, or 8.0%, increase in loan interest income, which was partially offset by a $3.8 million, or 42.6%, decrease in interest income on deposits at other banks and a $472,000, or 1.4%, decrease in investment interest income. The decrease in interest expense was primarily due to a $1.8 million, or 42.8%, decrease in interest on subordinated debentures, a $1.2 million, or 21.5%, decrease in interest on FHLB and other borrowed funds and a $1.1 million, or 1.2%, decrease in interest on deposits. The increase in non-interest income was primarily due to a $1.1 million, or 443.3%, increase in the fair value adjustment for marketable securities, an $875,000, or 16.7%, increase in trust fees, a $478,000, or 5.0%, increase in service charges on deposit accounts, a $330,000, or 2.6%, increase in other service charges and fees and a $319,000, or 2,453.8%, increase in gain (loss) on OREO, which was partially offset by a $969,000, or 99.7%, decrease in gain (loss) on sale of branches, equipment and other assets and a $383,000, or 2.8%, decrease in other income. The increase in non-interest expense was primarily due to the $12.7 million increase in merger and acquisition expense as a result of the acquisition of MCBI, a $4.4 million, or 6.9%, increase in salaries and employee benefits expense, $1.8 million, or 12.6%, increase in occupancy and equipment expense and a $943,000, or 11.3%, increase in data processing expense. These expenses were partially offset by a $403,000, or 1.4%, decrease in other operating expenses. Our net interest margin increased from 4.44% for the three-month period ended June 30, 2025 to 4.51% for the three-month period ended June 30, 2026. The yield on interest earning assets decreased from 6.42% for the three months ended June 30, 2025 to 6.26% for the three months ended June 30, 2026, and average interest earning assets increased from $20.08 billion to $21.74 billion. The increase in average interest earning assets is primarily due to a $2.03 billion increase in average loans receivable, partially offset by a $258.6 million decrease in average interest bearing balances due from banks and a $106.9 million decrease in average investment securities. For the three months ended June 30, 2026 and 2025, we recognized $3.6 million and $1.2 million, respectively, in total net accretion for acquired loans and deposits, and average purchase accounting loan discounts were $42.0 million and $16.2 million for the three months ended June 30, 2026 and 2025, respectively. The increase in accretion income along with the increase in the purchase accounting loan discounts, both of which resulted from the acquisition of Mountain Commerce, increased the net interest margin by five basis points for the three-month period ended June 30, 2026. We recognized $1.7 million in event income for the three months ended June 30, 2026 compared to $516,000 for the three months ended June 30, 2025. The increase in event income was accretive to the net interest margin by three basis points. The cost of interest bearing liabilities decreased from 2.73% for the three months ended June 30, 2025 to 2.45% for the three months ended June 30, 2026, and average interest-bearing liabilities increased from $14.58 billion to $15.61 billion. The increase in average interest-bearing liabilities is primarily due to a $1.27 billion increase in average interest-bearing deposits, which was partially offset by a $159.5 million decrease in average subordinated debentures and a $100.3 million decrease in FHLB and other borrowed funds. The reduction in subordinated debentures was due to the Company completing the payoff of its $140.0 million 5.50% Fixed-to-Floating Rate Subordinated Notes due 2030 and the Company also repurchasing $20.0 million of its $300.0 million Fixed-to-Floating Rate Subordinated Notes due 2032 during the third quarter of 2025. The two payoff events were accretive to the net interest margin by approximately four basis points. The overall increase in the net interest margin was due to an increase in interest income resulting from the increase in the average balance of interest-earning assets and a decrease in interest expense resulting from a decrease in interest rates paid on interest-bearing liabilities, which were partially offset by a decrease in interest income due to a reduction in asset yields and an increase in interest expense resulting from an increase in the average balance of interest-bearing liabilities. Our efficiency ratio was 44.54% for the three months ended June 30, 2026, compared to 41.68% for the same period in 2025. For the three months ended June 30, 2026, our efficiency ratio, as adjusted (non-GAAP), was 40.46%, compared to 42.01% reported for the same period in 2025. (See Table 29 for the non-GAAP tabular reconciliation). 60 Table of Contents Our annualized return on average assets was 1.95% for the three months ended June 30, 2026, compared to 2.08% for the same period in 2025. (See Table 26 for the related non-GAAP financial measures and tabular reconciliation). Our annualized return on average common equity was 10.55% and 11.77% for the three months ended June 30, 2026, and 2025, respectively. (See Table 27 for the related non-GAAP financial measures and tabular reconciliation). Results of Operations for the Six Months Ended June 30, 2026 and 2025 Our net income increased $3.9 million, or 1.7%, to $237.5 million for the six-month period ended June 30, 2026, from $233.6 million for the same period in 2025. On a diluted earnings per share basis, our earnings were $1.19 per share for the six-month period ended June 30, 2026 compared to $1.18 per share for the six-month period ended June 30, 2025. During the six months ended June 30, 2026, the Company recorded $6.7 million in provision for credit losses on loans, and the Company recorded a $1.0 million recovery of credit losses on unfunded commitments. As a result, total credit loss expense for the six-month period ended June 30, 2026 was $5.7 million. During the six months ended June 30, 2026, the Company recorded $1.7 million in income from an FDIC special assessment credit, $274,000 in BOLI death benefits, $431,000 in expense from the fair value adjustment for marketable securities and $13.1 million in merger and acquisition expense due to the completion of the previously announced acquisition of MCBI during the second quarter of 2026. The merger and acquisition expense reduced earnings per share by $0.05 per share for the six-month period ended June 30, 2026. Total interest income increased $16.2 million, or 2.6%, interest expense decreased $14.7 million, or 7.5%. This was partially offset by a $20.5 million, or 9.0%, increase in non-interest expense and a $248,000, or 0.3%, decrease in non-interest income. The increase in interest income resulted from a $24.7 million, or 4.5%, increase in loan interest income which was partially offset by a $5.5 million, or 35.3%, decrease in interest income on deposits at oth [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1331520/000133152026000051/homb-20251231.htm Complete FY 2025 MD&A: /company/HOMB/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-27 Report date: 2025-12-31 Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis presents our consolidated financial condition and results of operations for the years ended December 31, 2025, 2024 and 2023. This discussion should be read together with the “Summary Consolidated Financial Data,” our consolidated financial statements and the notes thereto, and other financial data included in this document. In addition to the historical information provided below, we have made certain estimates and forward-looking statements that involve risks and uncertainties. Our actual results could differ significantly from those anticipated in these estimates and in the forward-looking statements as a result of certain factors, including those discussed in the section of this document captioned “Risk Factors,” and elsewhere in this document. Unless the context requires otherwise, the terms “Company,” “HBI,” “us,” “we” and “our” refer to Home BancShares, Inc. on a consolidated basis. General We are a bank holding company headquartered in Conway, Arkansas, offering a broad array of financial services through our wholly owned bank subsidiary, Centennial Bank (“Centennial” or the "Bank"). As of December 31, 2025, we had, on a consolidated basis, total assets of $22.88 billion, loans receivable, net, of $15.39 billion, total deposits of $17.48 billion, and stockholders’ equity of $4.30 billion. We generate most of our revenue from interest on loans and investments, service charges, and mortgage banking income. Deposits and Federal Home Loan Bank ("FHLB") borrowed funds are our primary source of funding. Our largest expenses are interest on our funding sources, salaries and related employee benefits and occupancy and equipment. We measure our performance by calculating our net interest margin, return on average assets and return on average common equity. We also measure our performance by our efficiency ratio and efficiency ratio, as adjusted (non-GAAP). The efficiency ratio is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income. The efficiency ratio, as adjusted, is a meaningful non-GAAP measure for management, as it excludes certain items and is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income excluding certain items such as merger expenses, hurricane expenses and/or gains and losses. Table 1: Key Financial Measures [[GREPCENT_TABLE]] [["","As of or for the Years Ended December 31,"],["","2025","","2024","","2023"],["","(Dollars in thousands, except per share data)"],["Total assets","$","22,881,879","","","$","22,490,748","","","$","22,656,658"],["Loans receivable","15,686,209","","","14,764,500","","","14,424,728"],["Allowance for credit losses","(297,583)","","","(275,880)","","","(288,234)"],["Total deposits","17,479,957","","","17,146,297","","","16,787,711"],["Total stockholders\u2019 equity","4,296,871","","","3,961,025","","","3,791,075"],["Net income","475,441","","","402,241","","","392,929"],["Basic earnings per share","$","2.41","","","$","2.01","","","$","1.94"],["Diluted earnings per share","2.41","","","2.01","","","1.94"],["Book value per share","21.88","","","19.92","","","18.81"],["Tangible book value per share (non-GAAP)(1)","14.60","","","12.68","","","11.63"],["Net interest margin(2)","4.51","%","","4.27","%","","4.25","%"],["Efficiency ratio","40.88","","","42.74","","","46.21"],["Efficiency ratio, as adjusted (non-GAAP)(3)","41.29","","","42.65","","","45.24"],["Return on average assets","2.10","","","1.77","","","1.77"],["Return on average common equity","11.61","","","10.43","","","10.82"]] [[/GREPCENT_TABLE]] (1)See Table 31 for the non-GAAP tabular reconciliation. (2)Fully taxable equivalent (assuming an income tax rate of 24.989% for 2023, 24.433% for 2024 and 24.359% for 2025). (3)See Table 35 for the non-GAAP tabular reconciliation. 40 Table of Contents 2025 Overview Results of Operations for the Years Ended December 31, 2025 and 2024 Our net income increased $73.2 million, or 18.2%, to $475.4 million for the year ended December 31, 2025, from $402.2 million for the same period in 2024. On a diluted earnings per share basis, our earnings were $2.41 per share for the year ended December 31, 2025 and $2.01 per share for the year ended December 31, 2024. The Company recorded $20.9 million in credit loss expense for the year ended December 31, 2025. This consisted of a $24.1 million provision for credit losses on loans, which was partially offset by a $2.2 million recovery of credit losses on available-for-sale investments and a $1.0 million recovery of credit losses on unfunded commitments. For the year ended December 31, 2025, the Company recorded $7.4 million in special income from equity investments, a $2.4 million increase in the fair value of marketable securities, $2.0 million in recoveries on historic losses, a $1.9 million gain on the retirement of subordinated debentures, $1.5 million in income from a Federal Deposit Insurance Corporation ("FDIC") assessment reduction, $1.4 million in bank owned life insurance ("BOLI") death benefits, a $983,000 gain on sale of a building from our Texas market and $885,000 in legal fee reimbursements, which were partially offset by $3.3 million in legal claims expense and $580,000 in merger expense. Interest expense decreased by $64.5 million, or 14.3%, and non-interest income increased by $29.9 million, or 17.8%. This was partially offset by a $21.0 million, or 1.6%, decrease in interest income and an $11.2 million, or 2.5%, increase in non-interest expense. The decrease in interest expense was primarily due to a $30.7 million, or 58.4%, decrease in interest on FHLB and other borrowed funds, a $29.7 million, or 7.9%, decrease in interest on deposits, a $2.8 million, or 17.3%, decrease in interest on subordinated debentures and a $1.4 million, or 25.3%, decrease in interest on securities sold under agreements to repurchase. The increase in non-interest income was primarily due to a $21.7 million, or 72.6%, increase in other income, a $3.6 million, or 8.4% increase, in other service charges and fees, a $2.1 million, or 92.9% decrease, in the loss on OREO, a $2.0 million, or 12.4%, increase in mortgage lending income, and a $1.2 million, or 25.0%, increase in cash value of life insurance, which were partially offset by a $1.3 million, or 64.1%, decrease in gain on branches, equipment and other assets, a $751,000, or 6.6%, decrease in dividends from FHLB, FRB, FNBB and other and a $574,000, or 19.3%, decrease in income from the fair value adjustment for marketable securities. Included within other income was the $7.4 million in special income from equity investments, $2.0 million in recoveries on historic losses, $1.9 million gain on retirement of subordinated debt, $1.4 million in BOLI death benefits and $885,000 in legal fee reimbursements. The decrease in interest income resulted from a $19.8 million, or 12.7%, decrease in investment income and a $16.6 million, or 38.7%, decrease in interest income on deposits at other banks, which was partially offset by a $15.5 million, or 1.4%, increase in loan interest income. The increase in non-interest expense was due to an $11.8 million, or 4.9%, increase in salaries and employee benefits and a $1.2 million, or 1.1%, increase in other operating expenses, which was partially offset by a $2.0 million, or 5.6%, decrease in data processing expense. Our net interest margin on a fully taxable equivalent basis increased from 4.27% for the year ended December 31, 2024 to 4.51% for the year ended December 31, 2025. The yield on interest earning assets was 6.45% and 6.51% for the year ended December 31, 2025 and 2024, respectively, as average interest earning assets decreased from $20.09 billion to $20.00 billion. The decrease in average interest earning assets is primarily due to a $379.3 million decrease in average investment securities and a $209.1 million decrease in average interest-bearing balances due from banks, which was partially offset by a $494.9 million increase in average loans receivable. For the years ended December 31, 2025 and 2024, we recognized $5.1 million and $8.1 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by approximately 2 basis points. We recognized $6.0 million in event income for the year ended December 31, 2025, compared to $4.9 million for the year ended December 31, 2024. The cost of interest-bearing liabilities decreased from 3.08% for the year ended December 31, 2024 to 2.68% for the year ended December 31, 2025, and average interest-bearing liabilities decreased from $14.63 billion to $14.44 billion. The decrease in average-interest bearing liabilities is primarily due to a $638.8 million decrease in FHLB & other borrowed funds, a $66.0 million decrease in subordinated debentures and a $17.4 million decrease in securities sold under agreement to repurchase, which was partially offset by a $531.3 million increase in average interest-bearing deposits. The reduction in FHLB & other borrowed funds was due to the Company paying off its Bank Term Funding Program ("BTFP") advance in November 2024. Prior to paying off the advance, the Company held approximately $500 million in excess liquidity, which was dilutive to the net interest margin by approximately 8 basis points. The reduction in subordinated debentures was due to the Company completing the payoff of its $140.0 million 5.50% Fixed-to-Floating Rate Subordinated Notes due 2030 and the Company also repurchasing $20.0 million of its $300.0 million Fixed-to-Floating Rate Subordinated Notes due 2032 during the third quarter of 2025. The two payoff events were accretive to the net interest margin by approximately one basis point. The overall increase in the net interest margin was due to a decrease in interest expense resulting from a decrease in interest rates paid on interest-bearing liabilities, a decrease in interest expense resulting from a reduction in the average balance of interest-bearing liabilities and an increase in interest income resulting from the increase in the average balance of interest-earning assets which was partially offset by a decrease in interest income due to a reduction in asset yields. 41 Table of Contents Our efficiency ratio was 40.88% for the year ended December 31, 2025, compared to 42.74% for the same period in 2024. For the year ended December 31, 2025, our efficiency ratio, as adjusted (non-GAAP), was 41.29%, compared to 42.65% reported for the year ended December 31, 2024. (See Table 35 for the non-GAAP tabular reconciliation.) Our return on average assets was 2.10% for the year ended December 31, 2025, compared to 1.77% for the same period in 2024, and our return on average assets, as adjusted (non-GAAP), was 2.05% for the year ended December 31, 2025, compared to 1.77% for the same period in 2024. (See Table 32 for the non-GAAP tabular reconciliation.) Our return on average common equity was 11.61% for the year ended December 31, 2025, compared to 10.43% for the same period in 2024. Financial Condition as of and for the Years Ended December 31, 2025 and 2024 Our total assets as of December 31, 2025 increased $391.1 million to $22.88 billion from the $22.49 billion reported as of December 31, 2024. The increase in total assets is primarily due to a $921.7 million increase in loans receivable, which was partially offset by a $243.0 million decrease in cash and cash equivalents and a $216.7 million decrease in investment securities resulting from paydowns and maturities. Our loan portfolio balance increased $921.7 million to $15.69 billion as of December 31, 202 [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/HOMB/mda/fy2025/ All MD&A years: /company/HOMB/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/HOMB/mda/fy2024/): filed 2025-02-27; accession 0001331520-25-000076 (https://www.sec.gov/Archives/edgar/data/1331520/000133152025000076/homb-20241231.htm) - [FY 2023 MD&A](/company/HOMB/mda/fy2023/): filed 2024-02-26; accession 0001331520-24-000080 (https://www.sec.gov/Archives/edgar/data/1331520/000133152024000080/homb-20231231.htm) - [FY 2022 MD&A](/company/HOMB/mda/fy2022/): filed 2023-02-24; accession 0001331520-23-000011 (https://www.sec.gov/Archives/edgar/data/1331520/000133152023000011/homb-20221231.htm) - [FY 2021 MD&A](/company/HOMB/mda/fy2021/): filed 2022-02-24; accession 0001331520-22-000015 (https://www.sec.gov/Archives/edgar/data/1331520/000133152022000015/homb-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6022 State Commercial Banks) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/HOMB.md · JSON record: /company/HOMB.json · verified financials: /company/HOMB/financials.json / /company/HOMB/financials.csv · machine TOC for the whole site: /llms.txt