Home BancShares, Inc. filed a Form 8-K on November 5, 2026, disclosing receipt of approximately $80.7 million from a borrower's partial collateral sale, completing the first phase of resolving a previously disclosed $92.1 million non-performing lending relationship in its Texas market.

Key Highlights

  • Payment received: Approximately $80.7 million was received from the borrower's sale of a portion of the collateral securing the $92.1 million non-performing lending relationship.
  • Remaining balance: After application of the payment to principal, a remaining carrying amount of approximately $11.4 million continues to be classified as nonaccrual.
  • Collateral sale proceeds: According to the filing, proceeds represented approximately 95% of the appraised value of the collateral sold.
  • Non-performing loan ratio impact: Based on September 30, 2026 balances, the payment reduces the ratio of non-performing loans to total loans by approximately 48 basis points.
  • Non-performing asset ratio impact: The payment reduces the ratio of non-performing assets to total assets by approximately 34 basis points, per the filing.
  • Allowance coverage improvement: The allowance for credit losses to non-performing loans ratio increases by approximately 109 percentage points, the company disclosed.
  • Prior concentration: As of September 30, 2026, the loans in this relationship represented approximately 45.9% of the company's non-performing loans and 37.5% of its non-performing assets.

Home BancShares Discloses First Phase of Texas Non-Performing Credit Resolution

Home BancShares, Inc. (NYSE:HOMB), an Arkansas-based banking company headquartered at 719 Harkrider, Suite 100, Conway, Arkansas, reported in its November 5, 2026 filing that it received approximately $80.7 million from a borrower's sale of collateral tied to a previously disclosed non-performing lending relationship in Texas. The payment completes what the company described as the first of two phases in resolving that credit. The original relationship totaled $92.1 million, and as of September 30, 2026, it accounted for approximately 45.9% of the company's non-performing loans and 37.5% of its non-performing assets.

According to the filing, the $80.7 million payment has been applied to reduce the principal balance of the loans, leaving a remaining carrying amount of approximately $11.4 million. That remaining balance will continue to be classified as nonaccrual pending the second phase. The company disclosed that proceeds from the collateral sale represented approximately 95% of appraised value, and stated it "believes lends credence to its underwriting and management of the credit."

The filing states the company anticipates completing the second phase during the fourth quarter of 2026 through the borrower's sale of remaining collateral. If completed as anticipated, the company expects the borrower to use those proceeds to repay the remaining carrying balance, which "may result in the recovery of a portion of the amount of this credit previously charged off in the fourth quarter of 2024." The filing contains forward-looking statements subject to the company's cautionary language, noting there can be no assurance the remaining balance will be repaid within the anticipated timeframe or on the terms currently expected, or at all. The filing was signed by Jennifer C. Floyd, Chief Accounting Officer.

What Was Disclosed

Home BancShares disclosed receipt of approximately $80.7 million on a $92.1 million non-performing Texas lending relationship, reducing the remaining carrying balance to approximately $11.4 million and improving multiple non-performing asset ratios as of September 30, 2026 balances.