Home BancShares Q3 2026 Net Income Hits Record $129.5 Million

Home BancShares, Inc. (NYSE: HOMB) reported record third-quarter net income as stronger net interest income, lower credit-loss expense and the absence of prior-quarter acquisition costs outweighed weaker fee-based revenue.

Net income reached $129.5 million for the quarter ended September 30, 2026, up from $119.3 million in the second quarter and $123.6 million a year earlier. Adjusted net income, a non-GAAP measure, rose 0.8% sequentially and 7.9% year over year to a record $129.1 million.

Pretax, pre-provision net income, or PPNR, totaled $166.9 million, compared with $159.6 million in the prior quarter and $162.8 million in the third quarter of 2025. Adjusted PPNR was $166.6 million, down from $171.2 million sequentially but above the $157.7 million reported a year earlier.

Interest Income Supports Results

Net interest income after credit-loss expense increased to $242.0 million from $236.4 million in the second quarter and $222.7 million in the year-earlier period. Home BancShares attributed the gains to strong net interest income generation and lower credit-loss expense. Interest expense also declined from both comparison periods, reflecting improved funding costs.

Those benefits were partly offset by lower non-interest income, which fell to $46.4 million from $53.5 million in the prior quarter and $51.5 million a year earlier. The company said the result reflected normal variability across fee-based revenue categories.

Total net revenue was $288.4 million, down from $295.1 million in the second quarter but up from $277.7 million in the third quarter of 2025. The year-over-year increase reflected strength in net interest income and the company’s banking operations.

Acquisition Costs Roll Off

Non-interest expense declined to $121.5 million from $135.5 million in the second quarter, primarily because acquisition-related expenses recognized in that period did not recur. Expenses remained above the $114.8 million recorded a year earlier, reflecting franchise growth and continued investment in operations.

The reported efficiency ratio improved to 40.78% from 44.54% in the prior quarter, though it was slightly higher than 40.21% a year earlier. Excluding specified items, the non-GAAP adjusted efficiency ratio was 40.84%, compared with 40.46% sequentially and 40.95% in the prior-year quarter. The company characterized the adjusted measure as relatively stable quarter over quarter, with modest year-over-year improvement.

Return on average assets was 2.12%, up from 1.95% in the second quarter but below 2.17% a year earlier. Adjusted ROA was 2.11%, compared with 2.09% in the prior quarter and 2.10% in the third quarter of 2025.

Book value per share increased to $22.74 at September 30 from $22.68 at the end of June and $21.41 a year earlier. Tangible book value per share, a non-GAAP measure, rose to $15.35 from $15.32 sequentially and $14.13 year over year. Home BancShares attributed the increases to earnings generation and disciplined capital management.

The presentation did not provide a quantitative forward outlook. It highlighted continued operating investment and franchise growth, while identifying variability in fee-based revenue as a factor affecting quarterly results. The company also noted that its non-GAAP measures are supplemental, are not substitutes for GAAP results and may not be directly comparable with similarly named measures reported by other companies.