Home Bancshares: Taking Advantage Of Rising Rates

Reid Hudson profile picture
Reid Hudson


  • Home Bancshares has traditionally been focused on lending at high rates, earning an average interest rate of 5-6% on its loan book even when rates were extremely low.
  • HOMB is a safe lender, keeping its leverage low and a large chunk of assets liquid.
  • Still, it has been able to maintain ROAAs of around 2%.
  • Now, HOMB is focused on taking advantage of rising rates, hopefully deploying its cash, securities, and maturing/floating rate loans at rates that can double pre-tax earnings over the next year.
  • Regardless, HOMB is an efficient bank that operates in high-growth environments while making multiple successful acquisitions over its history.

St. Petersburg, Florida, USA Downtown City Skyline From the Pier

Sean Pavone/iStock via Getty Images

I was going to start this article by talking about Home Bancshares' (NYSE:HOMB) current strategy, and how it positioned them to take advantage of rising rates. I was going to talk about how HOMB was going

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HOMB Q3 2022 10-Q


HOMB Sept. 2021 Happy Bancshares Acquisition Presentation

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My own calculations


HOMB Sept. 2021 Happy Bancshares Acquisition Presentation


HOMB Sept. 2021 Happy Bancshares Acquisition Presentation


FRED - St. Louis Federal Reserve Branch

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HOMB Sept. 30, 2022 FDIC Call Report



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HOMB 2022 Q3 10-Q

This article was written by

Reid Hudson profile picture
Most of my investing and writing focuses on smaller and/or overlooked companies. But I will also write about other interesting opportunities that I find from time-to-time.

Disclosure: I/we have a beneficial long position in the shares of HOMB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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