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1. Company Snapshot

1.a. Company Description

Home Bancshares, Inc.(Conway, AR) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities.Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit.


The company's loan portfolio comprises non-farm/non-residential real estate, construction/land development, residential mortgage, consumer, agricultural, and commercial and industrial loans.It also provides internet banking, mobile banking and voice response information, cash management, overdraft protection, direct deposit, and automatic account transfer services, as well as safe deposit boxes and the United States savings bonds.In addition, the company writes policies for commercial and personal lines of business, including insurance for property, casualty, life, health, and employee benefits.


As of December 31, 2021, it operated through 160 branch locations that included 76 branches in Arkansas, 78 branches in Florida, 5 branches in Alabama, and 1 branch in New York City.Home Bancshares, Inc.(Conway, AR) was founded in 1998 and is headquartered in Conway, Arkansas.

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1.b. Last Insights on HOMB

Negative drivers include a decrease in stake by Copeland Capital Management LLC, which sold 144,043 shares during Q3. Additionally, Corient Private Wealth LLC cut its position by 30.7% in Q2, owning 58,847 shares after selling 26,070 shares. According to Marketbeat Ratings, three analysts have rated the stock with a hold recommendation, citing concerns over deposit trends and valuation multiples.

1.c. Company Highlights

2. Home Bancshares Q1 2026: Solid Earnings, Strong Capital, and a Strategic Acquisition

Home Bancshares delivered a robust first‑quarter 2026, posting net income of $118.2 million and a net interest margin of 4.51%, slightly down 10 basis points from Q4 2025. Earnings per share matched consensus at $0.60, underscoring consistent profitability. With a P/E of 11.01 and a P/B of 1.21, the stock trades well below peer averages, offering a 3.07% dividend yield that signals shareholder friendliness.

Publication Date: Apr -17

📋 Highlights
  • Record Book Value Growth:: Book value per share rose to $22.15 (+13% YoY) and tangible book value to $14.87, driven by strong earnings and capital discipline.
  • Strong Capital Position:: CET1 ratio at 16.7%, leverage at 14.3%, and Tier 1 at 16.7%, reflecting robust liquidity and regulatory compliance.
  • Aggressive Share Buybacks:: Repurchased 507,000 shares for $1.314 billion, maintaining a disciplined approach to stock repurchases to enhance shareholder value.
  • Loan Growth & Acquisition Synergies:: $917 million in loan production and $1.4 billion from the Mountain Commerce acquisition, with $7-7.5 million quarterly integration costs until cost savings materialize.
  • High Loan Loss Reserves & Credit Quality:: Reserves of $300 million (160% coverage of nonperforming loans) and early-stage past dues below 50 basis points, signaling conservative risk management.

Financial Highlights

The quarter saw book value per share climb to $22.15 and tangible book per share to $14.87, a 13% YoY increase. Net income of $118.2 million supported a 2.09% return on assets and 16.56% return on tangible common equity, while the P/TBV ratio of 1.21 reflects a healthy balance sheet.

Capital Position

Home Bancshares maintained a CET1 ratio of 16.7% and a Tier 1 ratio of 16.7%, comfortably above regulatory thresholds. The leverage ratio of 14.3% and a negative Net Debt/EBITDA of –0.28 indicate ample liquidity for growth initiatives and share buybacks.

Loan Production & Credit Quality

Total loan production reached $917 million, with early‑stage past‑dues below 50 bps and a reserve coverage of 160% for nonperforming loans. The company’s $300 million loan loss reserves rank among the highest globally, providing a cushion against potential credit stresses.

Deposit Growth

Deposits surged $258 million, driven by Florida expansion, while non‑interest‑bearing balances rose $126 million to $4 billion, representing 22.5% of total deposits. The deposit rate of 1.82% offers room to reprice and manage cost pressure.

Share Repurchase & Capital Allocation

Home Bancshares repurchased 507,000 shares for $1.314 billion, continuing an active buyback program that underscores management’s commitment to shareholder value without dilution.

Acquisition Impact

The Mountain Commerce Bank acquisition is expected to add over $1.4 billion in loans and deliver cost savings by late 2026. While the deal adds $7–7.5 million in quarterly expenses initially, the long‑term benefit is projected to lift earnings and enhance the bank’s asset base.

Outlook & Guidance

CEO John W. Allison highlighted the company’s disciplined acquisition strategy and focus on non‑dilutive growth. With a 4% PPI and modest margin pressure, the firm remains optimistic about managing the balance sheet, targeting a 2% ROA and maintaining a 3.07% dividend yield.

3. NewsRoom

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Comparing Home BancShares (NYSE:HOMB) and First NBC Bank (OTCMKTS:FNBCQ)

Apr -27

Source: defenseworld.net

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Home BancShares, Inc. Announces Second Quarter Dividend

Apr -22

Source: globenewswire.com

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Home BancShares, Inc. Announces Second Quarter Dividend

Apr -22

Source: globenewswire.com

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Home BancShares, Inc. (HOMB) Q1 2026 Earnings Call Transcript

Apr -17

Source: seekingalpha.com

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Home BancShares (HOMB) Reports Q1 Earnings: What Key Metrics Have to Say

Apr -16

Source: zacks.com

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Home BancShares (HOMB) Matches Q1 Earnings Estimates

Apr -15

Source: zacks.com

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HOMB's Top-Tier Performance Continues into 2026 with First Quarter Earnings of $118.2 Million, EPS of $0.60 and ROA of 2.09%

Apr -15

Source: globenewswire.com

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Home BancShares Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

Apr -14

Source: benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Banking and Related Activities

Expected Growth: 3.0%

Home Bancshares' 3.0% growth in Banking and Related Activities is driven by strategic acquisitions, expanding loan portfolios, and increased deposit growth. The bank's focus on community banking, diversified revenue streams, and cost control measures have also contributed to its growth. Additionally, a strong presence in the Arkansas market and a solid risk management framework have enabled the bank to capitalize on market opportunities.

7. Detailed Products

Checking Accounts

Personal and business checking accounts with various features such as online banking, mobile banking, and bill pay

Savings Accounts

Personal and business savings accounts with competitive interest rates and online banking access

Loans

Personal and commercial loans, including mortgages, home equity loans, and lines of credit

Credit Cards

Personal and business credit cards with rewards programs and online account management

Investment Services

Brokerage services, investment advice, and retirement planning

Treasury Management

Cash management services, including wire transfers, ACH payments, and account reconciliation

Online Banking

Secure online access to account information, bill pay, and fund transfers

Mobile Banking

Mobile app access to account information, bill pay, and fund transfers

8. Home Bancshares, Inc. (Conway, AR)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Home Bancshares, Inc. operates in a highly competitive industry, and customers have various alternatives for their banking needs. However, the company's strong brand presence and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Home Bancshares, Inc. has a diverse customer base, and no single customer has significant bargaining power. The company's customer-centric approach and personalized services also reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Home Bancshares, Inc. has a diversified supplier base, and no single supplier has significant bargaining power. The company's strong relationships with suppliers and its ability to negotiate favorable terms also reduce the bargaining power of suppliers.

Threat Of New Entrants

The banking industry has significant barriers to entry, including regulatory hurdles and capital requirements. While new entrants may emerge, Home Bancshares, Inc.'s established brand and customer base provide a competitive advantage.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Home Bancshares, Inc. faces intense competition from larger banks and fintech companies, which may erode its market share and profitability.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.30%
Debt Cost 3.95%
Equity Weight 66.70%
Equity Cost 9.42%
WACC 7.60%
Leverage 49.92%

11. Quality Control: Home Bancshares, Inc. (Conway, AR) passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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United Bankshares

A-Score: 6.6/10

Value: 6.5

Growth: 5.0

Quality: 7.7

Yield: 8.0

Momentum: 4.0

Volatility: 8.7

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Huntington Bancshares

A-Score: 6.4/10

Value: 6.7

Growth: 4.8

Quality: 6.0

Yield: 8.0

Momentum: 6.0

Volatility: 6.7

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Columbia Banking System

A-Score: 6.2/10

Value: 6.9

Growth: 7.1

Quality: 6.3

Yield: 8.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

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Home Bancshares

A-Score: 6.2/10

Value: 5.6

Growth: 5.6

Quality: 7.9

Yield: 6.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

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Cullen Frost Bankers

A-Score: 5.7/10

Value: 3.9

Growth: 6.9

Quality: 5.6

Yield: 6.0

Momentum: 3.5

Volatility: 8.0

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United Community Banks

A-Score: 5.6/10

Value: 6.7

Growth: 5.0

Quality: 7.6

Yield: 5.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.87$

Current Price

26.87$

Potential

-0.00%

Expected Cash-Flows