Home Bancshares Inc. Exceeds $1 Billion in Revenue, Achieves Strong Net Interest Margin

Home Bancshares Inc., the parent company of Centennial Bank, has reported a strong performance in its fourth quarter and year-end earnings release. The company's Chairman, John Allison, proudly announced that Home Bancshares had achieved its best performance in 26 years, exceeding $1 billion in revenue for the first time.

With a net income of $100.6 million for the quarter, or $0.51 per share, and record revenue of $258.4 million, Home Bancshares has demonstrated its ability to manage strong loan yields and low interest expense. The company's net interest margin remains at 4.9%, with return on assets (ROA) for the quarter at 1.7%.

One of the key highlights of the quarter was the completion of the "Texas cleanup", a comprehensive effort to clean up asset quality issues in Texas, resulting in a total charge-off of $53.3 million. This move has put Home Bancshares in a strong position for 2025, with expected recoveries in the range of $30 million.

Chairman John Allison praised the company's team, particularly Stephen Tipton and Kevin Hester, for their leadership in managing the net interest margin. He noted that while many models predicted a decrease in income as rates came down, Home Bancshares' strong expense reduction and interest expense have allowed them to maintain a peer-leading margin.

In his remarks, Allison also touched on the company's expectations for 2025, stating that they are running slightly ahead of last year's performance and believe they will continue their strong run rate into 2025. However, he noted that this may be offset by an increase in expenses due to the cleanup efforts.

Home Bancshares' financial performance has been driven by its strong loan yields and low interest expense, as well as its comprehensive asset quality cleanup. The company's record revenue of $1.017 billion for the year is a testament to its success, and it remains confident in its ability to continue this momentum into 2025.