Home Bancshares Inc (NYSE:HOMB) stock rose 2.83% (As on January 15, 11:24:10 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings that met expectations despite stronger-than-anticipated revenue. The quarter was marked by $400.2 million in loan growth, pushing total loans to a record $15.69 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. The company’s net interest margin improved to 4.61% in Q4 from 4.56% in the previous quarter, while its efficiency ratio stood at 39.54%, reflecting strong cost management. Return on average assets was 2.06% for the quarter. The bank maintained strong credit quality with non-performing loans to total loans at 0.54%, down from 0.56% in the previous quarter. The allowance for credit losses was $297.6 million, representing 1.90% of total loans. During the quarter, Home Bancshares repurchased 540,706 shares of common stock and paid a dividend of $0.21 per share, a 5% increase over the previous quarter’s dividend of $0.20. The company’s previously announced acquisition of Mountain Commerce Bancshares is expected to close during the first half of 2026, subject to regulatory and shareholder approvals. ROA demonstrated strong improvement in 2025, rising from 1.77% in Q4 2024 to a peak of 2.17% in Q3 2025.

Moreover, net income increased steadily through the first three quarters of 2025, reaching a peak of $123.6 million in Q3. Net income, as adjusted (non-GAAP) followed a similar trend, ending the year at $117.9 million. PPNR (non-GAAP) grew from $146.2 million at Q4 2024 to $167.7 million at Q4 2025. PPNR, as adjusted, (non-GAAP) increased to $167.1 million in Q4 2025 from $145.2 million in Q4 2024.

HOMB in the fourth quarter of FY25 has reported the adjusted earnings per share of 60 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 60 cents. The company had reported the adjusted revenue growth of 35.9 percent to $282.1 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $272.48 million. Interest expense declined steadily throughout 2025, decreasing from $105.6 million in Q4 2024 to $92.0 million in Q4 2025. Non-interest expense remained relatively stable, ranging from $112.2 million in Q4 2024 to $114.4 million in Q4 2025, with a peak of $116.0 million in Q2 2025, primarily due to legal claims expense.