| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 65 | 12.3x | 17.8x | Around median | |
Growth | 23 | 2.0% | 7.1% | Bottom tier | |
Quality | 65 | — | — | Around median | |
Safety | 24 | — | — | Bottom tier | |
Capital Return | 76 | 2.70% | 2.12% | Top tier | |
Momentum | 70 | 3.5% | 2.9% | Top tier | |
Sentiment | 43 | 6 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Home Bancshares operates through Centennial Bank and specialized lending platforms including CCFG and Shore Premier Finance. Its model is based on gathering deposits, funding loans, and benefiting from the spread between loan yields and funding costs, alongside fees from services, wealth management, mortgage banking, and investments. In Q2 fiscal 2026, the average loan yield, excluding event income, was 6.96%, versus 2.38% for the cost of interest-bearing deposits and 1.85% for the total cost of deposits, supporting a reported net interest margin of 4.51% and a core margin of 4.47%.
In Q2 fiscal 2026, the company reported revenue of $295 million, up 10.6% from $266.7 million in the previous quarter, record adjusted net income of $128.1 million, and adjusted earnings per share of $0.64. Adjusted return on assets was 2.09%, return on tangible equity was 16.82%, and adjusted pre-tax, pre-provision revenue reached a record $171 million, while the adjusted efficiency ratio was 40.46%.
The business mix expanded in Q2 fiscal 2026 after adding approximately $1.5 billion in loans and deposits from Mountain Commerce Bank in Tennessee, while the legacy Centennial Bank portfolio generated organic growth of $26 million instead of the expected decline of $600 million. Loan production exceeded $1.4 billion, with nearly $1 billion coming from the community bank network, and noninterest income exceeded $53 million, supported by loan recoveries, CCFG fees, and SBIC investments. The latest available EDGAR figures, for Q1 fiscal 2026, showed revenue of $353.8 million, net income of $118.2 million, and earnings per share of $0.60.
Automated analysis for informational purposes only — not investment advice.
Analyst consensus on HOMB is Hold, with an average price target of $33, a low of $31, and a high of $36. The average target is above the 52-week range high of $31.7, while the target range extends from within the 52-week range of $25.5–$31.7 to a level above it; the dispersion in targets reflects a balance between strong profitability and efficiency and uncertainty surrounding loan growth and competitive pressure on margins.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Adjusted net income was $128.1 million and adjusted earnings per share were $0.64 in Q2 fiscal 2026, with revenue of $295 million. Results benefited from the integration of Mountain Commerce Bank, a stable net interest margin of 4.51%, and an increase in noninterest income to more than $53 million. Adjusted pre-tax, pre-provision revenue also reached a record $171 million, and the adjusted efficiency ratio was 40.46%. Reported results absorbed approximately $12.7 million in merger-related expenses.
Mountain Commerce Bank added approximately $1.5 billion in loans and deposits in Q2 fiscal 2026, and its income contribution began earlier and was stronger than management expected. The legacy company conversion was completed in June 2026, while the Mountain Commerce Bank conversion was scheduled for November 2026. Management expects annual savings of approximately $5.5 million, equal to about 20% of the acquired bank's cost base, with part of the impact appearing in Q4 fiscal 2026. Merger-related expenses totaled approximately $12.7 million during Q2 fiscal 2026.
The bank generated organic growth of $26 million in legacy loans during Q2 fiscal 2026, instead of the expected decline of $600 million. Loan production exceeded $1.4 billion, with nearly $1 billion coming from the community bank network, and the loan committee approved approximately $350 million in facilities after quarter-end. Conversely, repayments may exceed $1 billion in Q3 fiscal 2026, so management did not provide a numerical growth target. Management emphasized that it would not lower credit standards or compromise loan structure to increase volume.
The reported net interest margin was 4.51%, and the core margin was 4.47% in Q2 fiscal 2026. The average loan yield, excluding event income, was 6.96%, versus a cost of 2.38% for interest-bearing deposits and 1.85% for total deposits. The company has approximately $1.25 billion of certificates of deposit maturing in the second half of fiscal 2026 at an average cost in the mid-3% range, in addition to approximately $300 million of Mountain Commerce Bank certificates. Management sees an opportunity to lower some of these costs, but competition for deposits at rates above 4% remains the main risk to the margin.
Nonperforming loans declined by 8 basis points, and nonperforming assets declined by 4 basis points in Q2 fiscal 2026, while early-stage delinquencies remained below 50 basis points. Allowance for loan loss coverage of nonperforming loans increased to 177%, and the allowance-to-total-loans ratio was 1.92%. The largest nonperforming loan remained just under $100 million, and the company did not recognize income from it during the quarter. Management reiterated its expectation that no additional loss would be recorded on it, while work to resolve the exposure continues.
Home Bancshares repurchased 1.5 million shares for $40.4 million in Q2 fiscal 2026, compared with half a million shares in the previous quarter. As of June 30, 2026, the remaining authorization exceeded 15 million shares, and liquidity at the parent company was approximately $450 million. The company ended the quarter with a common equity tier 1 capital ratio of 16.4% and total risk-based capital of 19%. Tangible book value per share increased to $15.32, up $0.45 sequentially and representing calculated annual growth of 12.1%.
