HomeTrust Bancshares, Inc. Announces Financial Results for the Second Quarter of the Year Ending December 31, 2025 and Declaration of a Quarterly Dividend
ASHEVILLE, N.C., July 22, 2025 (GLOBE NEWSWIRE) -- HomeTrust Bancshares, Inc. (NYSE:HTB) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the second quarter of the year ending December 31, 2025 and approval of its quarterly cash dividend.
For the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025:
net income was $17.2 million compared to $14.5 million;
diluted earnings per share ("EPS") were $1.00 compared to $0.84;
annualized return on assets ("ROA") was 1.58% compared to 1.33%;
annualized return on equity ("ROE") was 11.97% compared to 10.52%;
net interest margin was 4.32% compared to 4.18%;
provision for credit losses was $1.3 million compared to $1.5 million;
gain on the sale of our two Knoxville, Tennessee branches was $1.4 million compared to $0;
quarterly cash dividends continued at $0.12 per share totaling $2.1 million for both periods; and
78,412 shares of Company common stock were repurchased during the current quarter at an average price of $35.74 compared to 14,800 shares repurchased at an average price of $33.64 in the prior quarter.
For the six months ended June 30, 2025 compared to the six months ended June 30, 2024:
net income was $31.7 million compared to $27.5 million;
diluted EPS were $1.84 compared to $1.61;
annualized ROA was 1.46% compared to 1.25%;
annualized ROE was 11.26% compared to 10.73%;
net interest margin was 4.25% compared to 4.08%;
provision for credit losses was $2.8 million compared to $5.4 million;
tax-free death benefit proceeds from life insurance were $0 compared to $1.1 million;
cash dividends of $0.24 per share totaling $4.1 million compared to $0.22 per share totaling $3.7 million; and
93,212 shares of Company common stock were repurchased during the six months at an average price of $35.41 compared to 23,483 shares repurchased at an average price of $27.48 in the same period last year.
The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.12 per common share payable on August 28, 2025 to shareholders of record as of the close of business on August 14, 2025.
"Given the current economic uncertainty, we are pleased to report another quarter of strong financial results," said C. Hunter Westbrook, President and Chief Executive Officer. "These results reflect HTB's commitment to remain nimble and be prudent balance sheet managers. Our earnings story over recent quarters has primarily been driven by our top quartile net interest margin, which expanded to 4.32% this quarter, and our ability to limit growth in our expense base.
"HTB previously set a goal to be a consistently high-performing regional community bank that is a regionally and nationally recognized ‘Best Place to Work.' As a result of this strong financial performance, for the second year in a row, the Company was named one of Forbes' America's Best Banks for 2025 and recognized as a Top 50 Community Bank in the 2024 S&P Global Market Intelligence annual rankings, awards based on the overall financial performance and strength of financial institutions. The Company was also recently included in the coveted 2025 KBW Bank Honor Roll, a distinction granted to only 5% of eligible banks based on their best-in-class earnings growth over the past ten years. Over the last year, HTB has been recognized as a best place to work in all five states we serve as well as nationally by Newsweek and American Banker.
"Lastly, during the quarter we completed the previously announced sale of our two Knoxville, Tennessee branches. This transaction reflects our efforts to tighten our geographic footprint, improve our branch efficiencies, and allow us to better allocate capital to support long-term growth in other core markets."
WEBSITE: WWW.HTB.COM
Comparison of Results of Operations for the Three Months Ended June 30, 2025 and March 31, 2025Net Income. Net income totaled $17.2 million, or $1.00 per diluted share, for the three months ended June 30, 2025 compared to $14.5 million, or $0.84 per diluted share, for the three months ended March 31, 2025, an increase of $2.7 million, or 18.4%. Results for the three months ended June 30, 2025 benefited from a $1.3 million increase in net interest income and a $2.1 million increase in noninterest income due to a $1.4 million gain on the sale of two branch locations. Details of the changes in the various components of net income are further discussed below.
Net Interest Income. The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.
Three Months Ended
June 30, 2025
March 31, 2025
(Dollars in thousands)
AverageBalanceOutstanding
InterestEarned /Paid
Yield /Rate
AverageBalanceOutstanding
InterestEarned /Paid
Yield /Rate
Assets
Interest-earning assets
Loans receivable(1)
$
3,804,502
$
60,440
6.37
%
$
3,802,003
$
58,613
6.25
%
Debt securities available for sale
149,611
1,658
4.45
152,659
1,787
4.75
Other interest-earning assets(2)
149,175
1,543
4.15
206,242
3,235
6.36
Total interest-earning assets
4,103,288
63,641
6.22
4,160,904
63,635
6.20
Other assets
263,603
266,141
Total assets
$
4,366,891
$
4,427,045
Liabilities and equity
Interest-bearing liabilities
Interest-bearing checking accounts
$
563,817
$
1,251
0.89
%
$
573,316
$
1,324
0.94
%
Money market accounts
1,329,973
9,004
2.72
1,345,575
9,177
2.77
Savings accounts
182,340
37
0.08
183,354
38
0.08
Certificate accounts
868,321
8,564
3.96
951,715
9,824
4.19
Total interest-bearing deposits
2,944,451
18,856
2.57
3,053,960
20,363
2.70
Junior subordinated debt
10,154
206
8.14
10,129
205
8.21
Borrowings
31,154
350
4.51
12,301
160
5.28
Total interest-bearing liabilities
2,985,759
19,412
2.61
3,076,390
20,728
2.73
Noninterest-bearing deposits
744,585
719,522
Other liabilities
59,973
70,821
Total liabilities
3,790,317
3,866,733
Stockholders' equity
576,574
560,312
Total liabilities and stockholders' equity
$
4,366,891
$
4,427,045
Net earning assets
$
1,117,529
$
1,084,514
Average interest-earning assets to average interest-bearing liabilities
137.43
%
135.25
%
Non-tax-equivalent
Net interest income
$
44,229
$
42,907
Interest rate spread
3.61
%
3.47
%
Net interest margin(3)
4.32
%
4.18
%
Tax-equivalent(4)
Net interest income
$
44,660
$
43,325
Interest rate spread
3.65
%
3.51
%
Net interest margin(3)
4.37
%
4.22
%
(1) Average loans receivable balances include loans held for sale and nonaccruing loans.(2) Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks.(3) Net interest income divided by average interest-earning assets.(4) Tax-equivalent results include adjustments to interest income of $431 and $418 for the three months ended June 30, 2025 and March 31, 2025, respectively, calculated based on a combined federal and state tax rate of 24%.
Total interest and dividend income for the three months ended June 30, 2025 did not vary significantly when compared to the three months ended March 31, 2025. Regarding the components of this income, loan interest income increased $1.8 million, or 3.1%, primarily due to an increase in yield on loans and an additional day in the current quarter, which was offset by a $1.7 million, or 52.3%, decrease in other investments and interest-bearing deposits income, mainly due to a $1.0 million, or 78.9%, decrease in SBIC investment income where significant investment appreciation was recognized in the prior quarter. Accretion income on acquired loans of $1.0 million and $322,000 was recognized during the same periods, respectively, and was included in interest income on loans.
Total interest expense for the three months ended June 30, 2025 decreased $1.3 million, or 6.3%, compared to the three months ended March 31, 2025. The decrease was primarily the result of a decline in the average balance of certificate accounts, specifically brokered deposits, and a decline in the average cost of funds across funding categories.
The following table shows the effects that changes in average balances (volume), including the difference in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:
Increase / (Decrease)Due to
TotalIncrease /(Decrease)
(Dollars in thousands)
Volume
Rate
Interest-earning assets
Loans receivable
$
703
$
1,124
$
1,827
Debt securities available for sale
(17
)
(112
)
(129
)
Other interest-earning assets
(878
)
(814
)
(1,692
)
Total interest-earning assets
(192
)
198
6
Interest-bearing liabilities
Interest-bearing checking accounts
(8
)
(65
)
(73
)
Money market accounts
(7
)
(166
)
(173
)
Savings accounts
—
(1
)
(1
)
Certificate accounts
(767
)
(493
)
(1,260
)
Junior subordinated debt
3
(2
)
1
Borrowings
249
(59
)
190
Total interest-bearing liabilities
(530
)
(786
)
(1,316
)
Increase in net interest income
$
1,322
Provision for Credit Losses. The provision for credit losses is the amount of expense that, based on our judgment, is required to maintain the allowance for credit losses ("ACL") at an appropriate level under the current expected credit losses model.
The following table presents a breakdown of the components of the provision for credit losses:
Three Months Ended
(Dollars in thousands)
June 30, 2025
March 31, 2025
$ Change
% Change
Provision for credit losses
Loans
$
1,385
$
800
$
585
73
%
Off-balance-sheet credit exposure
(82
)
740
(822
)
(111
)
Total provision for credit losses
$
1,303
$
1,540
$
(237
)
(15
)%
For the quarter ended June 30, 2025, the "loans" portion of the provision for credit losses was the result of the following, offset by net charge-offs of $2.0 million during the quarter:
$0.3 million benefit driven by changes in the loan mix.
$1.6 million benefit due to changes in qualitative adjustments, partially offset by a slight worsening of the projected economic forecast, specifically the national unemployment rate. Of note, we released the $2.2 million qualitative allocation previously established for the potential impact of Hurricane Helene upon our loan portfolio which had been established in the quarter ended September 30, 2024. Any residual impact of the Hurricane is believed to have now been reflected elsewhere within the ACL calculation.
$1.3 million increase in specific reserves on individually evaluated loans.
For the quarter ended March 31, 2025, the "loans" portion of the provision for credit losses was the result of the following, offset by net charge-offs of $1.3 million during the quarter:
$0.6 million benefit driven by changes in the loan mix.
A slight improvement in the projected economic forecast, specifically the national unemployment rate, was offset by changes in qualitative adjustments.
$0.1 million increase in specific reserves on individually evaluated loans.
For the quarter ended June 30, 2025, the amount recorded for off-balance-sheet credit exposure was the result of an increase in the balance of loan commitments offset by changes in the projected economic forecast and qualitative allocation as outlined above. For the quarter ended March 31, 2025, the amount recorded for off-balance-sheet credit exposure was the result of an increase in the balance of loan commitments and changes in the loan mix and projected economic forecast as outlined above.
Noninterest Income. Noninterest income for the three months ended June 30, 2025 increased $2.1 million, or 26.5%, when compared to the quarter ended March 31, 2025. Changes in the components of noninterest income are discussed below:
Three Months Ended
(Dollars in thousands)
June 30, 2025
March 31, 2025
$ Change
% Change
Noninterest income
Service charges and fees on deposit accounts
$
2,502
$
2,244
$
258
11
%
Loan income and fees
548
721
(173
)
(24
)
Gain on sale of loans held for sale
2,109
1,908
201
11
Bank owned life insurance ("BOLI") income
852
842
10
1
Operating lease income
1,876
1,379
497
36
Gain on sale of branches
1,448
—
1,448
100
Gain on sale of premises and equipment
28
—
28
100
Other
794
933
(139
)
(15
)
Total noninterest income
$
10,157
$
8,027
$
2,130
27
%
Gain on sale of loans held for sale: The increase was primarily driven by sales of the guaranteed portion of SBA commercial loans during the period. There were $7.3 million in sales of the guaranteed portion of SBA commercial loans with gains of $570,000 for the current quarter compared to $4.6 million sold and gains of $366,000 for the prior quarter. There were $108.8 million of HELOCs originated for sale which were sold during the current quarter with gains of $954,000 compared to $89.4 million sold with gains of $1.1 million in the prior quarter. There were $30.3 million of residential mortgage loans sold for gains of $558,000 during the current quarter compared to $18.8 million sold with gains of $473,000 in the prior quarter. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a net gain of $27,000 for the current quarter compared to a net gain of $13,000 for the prior quarter.
Operating lease income: The increase was primarily the result of a reduction in losses recognized on the sale of previously leased equipment. We recognized net losses of $358,000 and $745,000 during the three months ended June 30, 2025 and March 31, 2025, respectively.
Gain on sale of branches: On May 23, 2025, we completed the previously announced sale of our two Knoxville, Tennessee branches, recognizing a gain of $1.4 million. The gain was primarily the result of a premium received on the deposits assumed by the purchasing institution, partially offset by expenses associated with the transaction.
Noninterest Expense. Noninterest expense for the three months ended June 30, 2025 increased $294,000, or 0.9%, when compared to the three months ended March 31, 2025. Changes in the components of noninterest expense are discussed below:
Three Months Ended
(Dollars in thousands)
June 30, 2025
March 31, 2025
$ Change
% Change
Noninterest expense
Salaries and employee benefits
$
18,208
$
17,699
$
509
3
%
Occupancy expense, net
2,375
2,511
(136
)
(5
)
Computer services
2,488
2,805
(317
)
(11
)
Operating lease depreciation expense
1,789
1,868
(79
)
(4
)
Telephone, postage and supplies
561
546
15
3
Marketing and advertising
442
452
(10
)
(2
)
Deposit insurance premiums
473
511
(38
)
(7
)
Core deposit intangible amortization
411
515
(104
)
(20
)
Other
4,508
4,054
454
11
Total noninterest expense
$
31,255
$
30,961
$
294
1
%
Computer services: At the end of the prior calendar year, we finalized the multiyear renewal of our largest core processing contract. The decrease in expense quarter-over-quarter is a reflection of the improved vendor pricing negotiated through this effort.
Other: The change was driven by an increase in loan workout expenses in addition to smaller increases across several other expense categories.
Income Taxes. The amount of income tax expense is influenced by the amount of pre-tax income, tax-exempt income, changes in the statutory rate and the effect of changes in valuation allowances maintained against deferred tax benefits. The effective tax rates for the three months ended June 30, 2025 and March 31, 2025 were 21.2% and 21.1%, respectively.
Comparison of Results of Operations for the Six Months Ended June 30, 2025 and June 30, 2024Net Income. Net income totaled $31.7 million, or $1.84 per diluted share, for the six months ended June 30, 2025 compared to $27.5 million, or $1.61 per diluted share, for the six months ended June 30, 2024, an increase of $4.3 million, or 15.5%. The results for the six months ended June 30, 2025 were positively impacted by a $3.2 million increase in net interest income, a decrease of $2.6 million in the provision for credit losses, a $1.3 million increase in noninterest income, partially offset by a $1.6 million increase in noninterest expense. Details of the changes in the various components of net income are further discussed below.
Net Interest Income. The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.
Six Months Ended
June 30, 2025
June 30, 2024
(Dollars in thousands)
AverageBalanceOutstanding
InterestEarned /Paid
Yield /Rate
AverageBalanceOutstanding
InterestEarned /Paid
Yield /Rate
Assets
Interest-earning assets
Loans receivable(1)
$
3,803,259
$
119,053
6.31
%
$
3,874,740
$
122,113
6.34
%
Debt securities available for sale
151,127
3,445
4.60
130,510
2,808
4.33
Other interest-earning assets(2)
177,551
4,778
5.43
135,936
3,848
5.69
Total interest-earning assets
4,131,937
127,276
6.21
4,141,186
128,769
6.25
Other assets
264,865
282,550
Total assets
$
4,396,802
$
4,423,736
Liabilities and equity
Interest-bearing liabilities
Interest-bearing checking accounts
$
568,540
$
2,575
0.91
%
$
588,567
$
2,870
0.98
%
Money market accounts
1,337,731
18,180
2.74
1,289,758
19,340
3.02
Savings accounts
182,844
75
0.08
189,887
84
0.09
Certificate accounts
909,787
18,389
4.08
895,242
19,162
4.30
Total interest-bearing deposits
2,998,902
39,219
2.64
2,963,454
41,456
2.81
Junior subordinated debt
10,142
411
8.17
10,042
470
9.41
Borrowings
21,780
510
4.72
95,235
2,902
6.13
Total interest-bearing liabilities
3,030,824
40,140
2.67
3,068,731
44,828
2.94
Noninterest-bearing deposits
732,123
789,565
Other liabilities
65,367
50,224
Total liabilities
3,828,314
3,908,520
Stockholders' equity
568,488
515,216
Total liabilities and stockholders' equity
$
4,396,802
$
4,423,736
