Home Bancshares (Conway, AR) (HOMB) Q2 2026 earnings summary

Executive summary

• Achieved record adjusted net income of $128.1 million in Q2 2026, up 8.4% sequentially and nearly 12% year-over-year, driven by the Mountain Commerce acquisition and strong operating performance.

• Successfully integrated Mountain Commerce Bank, which contributed earlier and stronger than expected, driving both revenue and cost synergies.

• Maintained robust credit discipline and asset quality, with improvements in non-performing loans and assets.

• Stepped up share repurchases, buying back 1.5 million shares in Q2, approaching the halfway mark of shares issued in the Mountain Commerce transaction.

• Completed the acquisition of Mountain Commerce Bancorp, incurring $12.7 million in merger-related expenses.

Financial highlights

• Total revenue reached a record $295.1 million, up 10.6% sequentially from $266.7 million.

• Adjusted pre-tax, pre-provision net revenue hit a record $171.2 million, up from $152.7 million in the prior quarter.

• Adjusted EPS was $0.64, excluding $12.7 million in merger-related expenses.

• Adjusted ROA was 2.09%, and return on tangible common equity was 16.82% on a TCE ratio of 13.22%.

• Net interest margin held steady at 4.51%, with core margin at 4.47%.

• Tangible book value per share grew $0.45 to $15.32, annualized increase of 12.1%.

• Non-interest income exceeded $53 million, driven by higher loan recovery, fee income, and SBIC investment gains.

• Net interest income after credit loss expense was $236.4 million, a 5.8% increase from the previous quarter.

• Total expenses increased, with interest expense at $95.2 million and non-interest expense at $135.5 million, reflecting merger costs and higher deposit interest.

Outlook and guidance

• Management expects continued strong profitability and efficiency, with further cost savings from the Mountain Commerce integration to be realized in Q4 and into 2027.

• Loan growth remains difficult to forecast due to unpredictable customer activity, but the pipeline is robust, especially in Florida and Texas.

• Margin expected to remain stable, with potential upside if rates rise; deposit competition is the main risk.

• Non-interest income expected to average around $50 million per quarter, with some variability from loan recoveries and payoffs.