"you can't fix stupid... they run their banks in the ground"
— John Allison
03Detailed Report
HOMB
Company HOMB
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 26, 2026
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Executive Summary
- Home Bancshares (HOMB) reported solid Q2 2024 results with revenue of $368.3 million, net income of $101.5 million and earnings per share (EPS) of $0.51. The quarter featured a 14 bps expansion in net interest margin (NIM) to 4.27% (4.23% ex-event income), driven by loan yields and a favorable deposit-cost environment in a rising-rate regime.
- The company delivered robust loan growth, with ending loan balances rising by about $270 million in Q2 2024, contributing to an annualized yield that supported a 0.50+% return on assets and a modestly improving efficiency profile (adjusted cost-to-income effectively around 42.6%). Deposit growth continued for a third straight quarter, with total deposits up about $90 million in the quarter and a loan-to-deposit ratio remaining well below historical norms at ~87%.
- Management emphasized a fortress balance sheet, disciplined expense control, and a constructive outlook on capital deployment, including ongoing buybacks and a potential M&A agenda. The earnings call reinforced a cautious but constructive view on the bank sector, noting the upcoming end of the Bank Term Funding Program (BTFP) in 2025 and potential opportunities in a stressed regional banking environment. Overall, HOMB appears well-positioned to navigate a higher-rate environment with durable profitability, strong liquidity, and substantial capital buffers.
Key Performance Indicators
Revenue
Increasing
368.30M
QoQ: 2.96% | YoY: 10.74%
Gross Profit
Increasing
338.88M
92.01% margin
QoQ: 2.43% | YoY: 36.49%
Operating Income
Decreasing
133.41M
QoQ: 2.31% | YoY: -2.54%
Net Income
Decreasing
101.53M
QoQ: 1.42% | YoY: -3.55%
EPS
Decreasing
0.51
QoQ: 2.00% | YoY: -1.92%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $368.299 million (YoY +10.7%, QoQ +2.96%)
- Gross Profit: $338.884 million (YoY +36.5%, QoQ +2.4%)
- Operating Income: $133.411 million (YoY -2.5%, QoQ +2.3%)
- Net Income: $101.530 million (YoY -3.6%, QoQ +1.4%)
- EPS: $0.51 (Diluted)
- Net Interest Margin (NIM): 4.27% reported; 4.23% ex-event income (QoQ up 12–15 bps)
- Efficiency/Operating expenses: Adjusted efficiency ratio 42.59% (vs 44.43% prior quarter)
- Loan growth: Ending loans +$268–$270 million QoQ; originations ~$1.19 billion in Q2
- Deposits: Total deposits +$90 million QoQ; non-interest-bearing deposits ~24% of total deposits; cost of deposits ~2.3% at quarter end
- Capital & liquidity: Tangible common equity ratio and reserve coverage robust; Total assets ~$22.9B; cash & equivalents ~$1.06B; liquidity metrics favorable with significant cash & securities on balance sheet
- Cash flow: Net cash provided by operating activities ~$109.4 million; free cash flow ~$99.2 million; net change in cash negative by ~$116.5 million due to investing/financing activities
- Key balance sheet items: Goodwill ~$1.39B; total assets ~$22.92B; total liabilities ~$19.06B; total equity ~$3.86B
- Outlook signals: expectation of mid-single-digit loan growth in the back half of 2024; ongoing emphasis on deposit gathering, cost of funds management, and selective higher-quality loan origination; potential M&A opportunities in 2025 (BTFP end)
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
368.30M
10.74%
2.96%
Gross Profit
338.88M
36.49%
2.43%
Operating Income
133.41M
-2.54%
2.31%
Net Income
101.53M
-3.55%
1.42%
EPS
0.51
-1.92%
2.00%
Key Financial Ratios
Gross Profit Margin
Excellent
92.00%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
36.20%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
27.60%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Weak
0.44%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.63%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.29
Current ratio below safe levels, potential liquidity risk
Debt to Equity
Moderate
0.50
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Value
11.70x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.23x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.
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