Regional banking company Home Bancshares (NYSE: HOMB) reported revenue ahead of Wall Street’s expectations in Q3 CY2025, with sales up 7.6% year on year to $277.7 million. Its non-GAAP profit of $0.61 per share was 2.2% above analysts’ consensus estimates.
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Home Bancshares (HOMB) Q3 CY2025 Highlights:
- Net Interest Income: $226.2 million vs analyst estimates of $225.3 million (5.1% year-on-year growth, in line)
- Net Interest Margin: 4.6% vs analyst estimates of 4.5% (8.9 basis point beat)
- Revenue: $277.7 million vs analyst estimates of $268.4 million (7.6% year-on-year growth, 3.5% beat)
- Efficiency Ratio: 40.2% vs analyst estimates of 41.2% (94.5 basis point beat)
- Adjusted EPS: $0.61 vs analyst estimates of $0.60 (2.2% beat)
- Tangible Book Value per Share: $14.13 vs analyst estimates of $13.82 (11.6% year-on-year growth, 2.2% beat)
- Market Capitalization: $5.59 billion
Company Overview
Founded in Conway, Arkansas in 1998 and growing through strategic acquisitions across the Southeast, Home Bancshares (NYSE: HOMB) operates as the bank holding company for Centennial Bank, providing commercial and retail banking services to businesses and individuals across multiple states.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Luckily, Home Bancshares’s revenue grew at an impressive 9.4% compounded annual growth rate over the last five years. Its growth beat the average banking company and shows its offerings resonate with customers, a helpful starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Home Bancshares’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 2.1% over the last two years was well below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Home Bancshares reported year-on-year revenue growth of 7.6%, and its $277.7 million of revenue exceeded Wall Street’s estimates by 3.5%.
Net interest income made up 82% of the company’s total revenue during the last five years, meaning Home Bancshares barely relies on non-interest income to drive its overall growth.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
Home Bancshares’s TBVPS grew at an excellent 8.7% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 13.8% annually over the last two years from $10.90 to $14.13 per share.
Over the next 12 months, Consensus estimates call for Home Bancshares’s TBVPS to grow by 8.6% to $15.35, decent growth rate.
Key Takeaways from Home Bancshares’s Q3 Results
We enjoyed seeing Home Bancshares beat analysts’ revenue expectations this quarter. We were also happy its tangible book value per share outperformed Wall Street’s estimates. On the other hand, its EPS slightly beat. Overall, this print had some key positives. The stock remained flat at $27.43 immediately following the results.
So should you invest in Home Bancshares right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
