Posted in home improvement loans

Home Bancshares: Relatively Cheap Valuation Sets Up A H-O-M-B Run Opportunity (NASDAQ:HOMB)

Investment Thesis

Headquartered in Conway, Arkansas, Home BancShares, Inc. (HOMB) is a $16.9 billion asset holding company and parent to Centennial Bank, a Southeastern commercial and retail bank. Centennial provides a wide range of commercial and retail banking services to businesses, developers, and individuals. With its more than 165 branch location, Centennial offers services across the state of Arkansas, the panhandle and south Florida, Alabama’s Gulf Coast and New York City.

While HOMB has continued to grow much faster than bank peers, some have called into question the long-term net interest margin (NIM) potential juxtaposed against the rate of future earnings growth. While credit is difficult to forecast, I do believe future net charge-offs (NCOs) are going to be limited in nature. Expense management has been a clear priority for the management team, and in my mind, it will be the swing factor for future profitability.

Today, my bullish stance

Read More
Continue Reading Home Bancshares: Relatively Cheap Valuation Sets Up A H-O-M-B Run Opportunity (NASDAQ:HOMB)