The final quarter of '24 did not disappoint, with strong performance of another $100 million profit quarter, and that is after taking a hurricane reserve of $16.7 million as an abundance of caution we had as the second hurricane hit.
— John Allison
03Detailed Report
HOMB
Company HOMB
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 26, 2026
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Executive Summary
Home Bancshares delivered a standout fourth quarter of 2024, continuing a run of earnings power that culminated in a record annual revenue of $1.17 billion and a quarterly net income of $100.6 million ($0.51 per share, diluted $0.51). Management highlighted resilient operating momentum in a higher-for-longer rate environment, with the net interest margin (NIM) expanding to 4.39% for Q4 and ending the quarter at 4.42% excluding event income. Deposit costs declined meaningfully, supporting margin resilience as total deposits rose by $441 million QoQ to support an improved loan-to-deposit ratio of 86.1%. The quarter included a $53.4 million charge-off primarily tied to Texas C&I credits, part of an ongoing “Texas cleanup,” with management signaling anticipated recoveries of more than $30 million over time and substantial disposition work expected to reduce NPAs in early 2025. The balance sheet remains fortress-like: very high liquidity (cash and short-term investments around $3.0 billion combined at year-end), CET1 at 15.1% and risk-based capital at 18.7%, and a track record of capital discipline as evidenced by a full payoff of the Fed facility and a robust tangible book value per share of $12.68. Management signaled an active but disciplined M&A posture for 2025, aiming to deploy excess capital into accretive deals and seeking regulatory relief to streamline execution. Looking ahead, the company projects a stronger 2025, anchored by regional market growth (notably Florida and Texas), prudent expense management, and a continued emphasis on deposit retention and capital efficiency. Investors should monitor: (1) the pace of loan growth returning in 2025, (2) recoveries from the Texas charge-off cycle, (3) ongoing deposit funding dynamics as rate expectations evolve, and (4) regulatory and policy developments that could expedite M&A activity and reduce compliance drag.
Key Performance Indicators
Revenue
Increasing
360.33M
QoQ: 41.63% | YoY: 5.07%
Gross Profit
Increasing
238.06M
66.07% margin
QoQ: -0.45% | YoY: 1.08%
Operating Income
Increasing
154.95M
QoQ: 20.07% | YoY: 37.38%
Net Income
Increasing
100.56M
QoQ: 0.53% | YoY: 16.61%
EPS
Increasing
0.50
QoQ: 0.00% | YoY: 16.28%
Revenue Trend
Margin Analysis
Financial Highlights
Inflation-adjusted quarterly performance and pivotal efficiency metrics:
- Revenue (Q4 2024): $360.33 million; YoY +5.07%, QoQ +41.63% according to earnings data; for the full year 2024, revenue exceeded $1.17 billion (record).
- Gross profit: $238.06 million; gross margin reported around 66.1% for the period (gross profit margin data in the filing shows a high gross profitability base).
- Operating income: $154.95 million; operating income margin approximately 43.0% in Q4.
- Net income: $100.56 million; net income margin around 27.9% for the quarter; full-year net income surpassed $400 million (record $402.24 million).
- EPS: $0.50 per basic share, $0.51 diluted; YoY EPS growth ~16.3% (per transcript framing).
- Net interest margin (NIM): 4.39% in Q4, with exit rate of 4.42% excluding event income; Q3 exited at 4.33% (implied from commentary), reflecting continued yield management and funded balance sheet strength.
- Yield on loans (ex-event): 7.45% in Q4 (ex-event income).
- Deposit costs: 2.75% at quarter-end, down 22 basis points in Q4 to 2.80% average for the quarter; growth in deposits of $441 million QoQ, with noninterest-bearing deposits up $69 million and now 23.4% of total deposits.
- Efficiency: fourth-quarter efficiency ratio 42.24% (vs. 46.21% in 2023), indicating meaningful operating leverage and cost discipline.
- Balance sheet health: total assets $22.49 billion; CET1 15.1%; risk-based capital 18.7%; cash and cash equivalents $910.3 million; short-term investments $1.74 billion; total liquidity, including investments, is robust.
- Credit quality and reserves: charge-offs in Q4 2024 totaled $53.39 million, concentrated in Texas; NPLs/NPAs essentially flat QoQ; allowance coverage around 278% of NPLs; $110 million in hurricane-related deferrals remaining at year-end; management expects recoveries of >$30 million over time and ongoing resolutions in 1Q25.
- Capital deployment: Fed BTFP payoff completed; remaining Fed balance ~ $0.5 billion; common equity position remains solid as record CET1 and risk-based capital levels indicate ample capital headroom for growth and potential acquisitions.
- Valuation context: price-to-book around 1.42x, indicative of a solid premium relative to tangible book value for a high-quality regional bank franchise.
- Cash flow: cash from operating activities $75.1 million; free cash flow $60.9 million; cash at period end $910.3 million; net cash used in financing activities was $317.1 million (reflecting debt repayment and capital actions).
- Outlook context: management indicated optimism for 2025 with a potential cadence of 1–2 meaningful deals, a continuing focus on deposit stability, and margin discipline in a cautious macro environment.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
360.33M
5.07%
41.63%
Gross Profit
238.06M
1.08%
-0.45%
Operating Income
154.95M
37.38%
20.07%
Net Income
100.56M
16.61%
0.53%
EPS
0.50
16.28%
0.00%
Key Financial Ratios
Gross Profit Margin
Weak
1.00%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Excellent
64.10%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
41.60%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Weak
0.45%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.54%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
45.28
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.24
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Value
13.99x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.42x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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