Regional banking company Home Bancshares (NYSE: HOMB) reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 7.6% year on year to $282.1 million. Its non-GAAP profit of $0.60 per share was in line with analysts’ consensus estimates.
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Home Bancshares (HOMB) Q4 CY2025 Highlights:
- Net Interest Income: $231.6 million vs analyst estimates of $226.2 million (6.7% year-on-year growth, 2.4% beat)
- Net Interest Margin: 4.6% vs analyst estimates of 4.5% (9.4 basis point beat)
- Revenue: $282.1 million vs analyst estimates of $274 million (7.6% year-on-year growth, 2.9% beat)
- Efficiency Ratio: 39.5% vs analyst estimates of 41.4% (187.3 basis point beat)
- Adjusted EPS: $0.60 vs analyst estimates of $0.60 (in line)
- Tangible Book Value per Share: $14.60 vs analyst estimates of $14.52 (15.1% year-on-year growth, 0.5% beat)
- Market Capitalization: $5.48 billion
“HOMB delivered a record $475.4 million in annual income, driven by strong fourth-quarter results: a sub-40% efficiency ratio, $400.2 million in loan growth, robust margin and resolution of the Texas lawsuit which provided additional income. These accomplishments underscore our commitment to operational excellence and shareholder value,” said John Allison, Chairman.
Company Overview
Founded in Conway, Arkansas in 1998 and growing through strategic acquisitions across the Southeast, Home Bancshares (NYSE: HOMB) operates as the bank holding company for Centennial Bank, providing commercial and retail banking services to businesses and individuals across multiple states.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Regrettably, Home Bancshares’s revenue grew at a mediocre 9.2% compounded annual growth rate over the last five years. This fell short of our benchmark for the banking sector and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Home Bancshares’s recent performance shows its demand has slowed as its annualized revenue growth of 4.4% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Home Bancshares reported year-on-year revenue growth of 7.6%, and its $282.1 million of revenue exceeded Wall Street’s estimates by 2.9%.
Net interest income made up 82.7% of the company’s total revenue during the last five years, meaning Home Bancshares barely relies on non-interest income to drive its overall growth.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
Home Bancshares’s TBVPS grew at an excellent 8.5% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 12% annually over the last two years from $11.63 to $14.60 per share.
Over the next 12 months, Consensus estimates call for Home Bancshares’s TBVPS to grow by 10.4% to $16.12, mediocre growth rate.
Key Takeaways from Home Bancshares’s Q4 Results
We enjoyed seeing Home Bancshares beat analysts’ revenue expectations this quarter. We were also happy its net interest income outperformed Wall Street’s estimates. On the other hand, its EPS was in line. Overall, this print had some key positives. The stock remained flat at $28.37 immediately after reporting.
Is Home Bancshares an attractive investment opportunity at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
