Home BancShares reported record full-year 2025 results with a net profit of about $475 million, EPS of $2.41, NIM of 4.61%, ROTCE of 16.65%, and an efficiency ratio around 41%. The company also announced the acquisition of Mountain Commerce Bank to enter Tennessee and continued share repurchases.

Chairman John Allison highlighted Home BancShares’ strong financial performance in 2025, with a net profit of over $475 million, up 18.2% from the previous year. The company also reported a record revenue of $1.09 billion, EPS growth of 20%, and maintained a healthy efficiency ratio of 41.29%.

For the fourth quarter of 2025, Home BancShares posted $118 million in profit, with PPNR of $167.7 million, ROI of 2.06%, and an efficiency ratio of 39.53%. The company reported NIM of 4.61% and ROTCE of 16.65%, along with building reserves to about 1.90%.

CEO Stephen Tipton highlighted strong revenue and NIM expansion in the quarter, resulting in an adjusted return on assets of 2.05% and adjusted diluted EPS of $0.60. Loan yields fell slightly, but interest-bearing deposit costs also declined, contributing to overall growth.

President and Chief Lending Officer Kevin Hester reported significant loan growth in 2025, with fourth-quarter loan growth of $400 million and full-year loan growth of $922 million. However, he cautioned that expected payoffs not occurring as scheduled could impact early loan growth in 2026.

Management discussed competitive loan pricing pressures and emphasized expense discipline. CFO Brian Davis highlighted an adjusted efficiency ratio of 39.53% for the quarter and outlined a standalone expense outlook with approximately 1% growth.

Chris Poulton, president of CCFG, discussed strong loan origination and net loan growth in the fourth quarter, as well as the challenges of elevated paydowns. He expects new funding and volume to help offset paydowns over time.

Executives addressed a rise in 90-day delinquencies in the Shore Premier Finance portfolio, attributing it to delays in repossession processes. They described the issues as scattered and not indicative of a major trend.

Home BancShares ended 2025 with a common equity tier 1 ratio of 16.3% and total risk-based capital of 19.1%, indicating continued capital growth throughout the year.

Management reiterated optimism about the acquisition of Mountain Commerce Bank and potential integration opportunities. They emphasized benefits accruing on day one and the company’s commitment to shareholder value.

In conclusion, Home BancShares remains open to additional M&A opportunities post-Mountain Commerce acquisition while focusing on maintaining shareholder value and strategic growth.

Read more at Yahoo Finance: Home BancShares Q4 Earnings Call Highlights