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HomeTrust Bancshares, Inc. Announces Financial Results for the Fourth Quarter of the Year Ending December 31, 2024 and Quarterly Dividend

ASHEVILLE, N.C., Jan. 23, 2025 (GLOBE NEWSWIRE) — HomeTrust Bancshares, Inc. (NASDAQ: HTBI) (“Company”), the holding company of HomeTrust Bank (“Bank”), today announced preliminary net income for the fourth quarter of the year ending December 31, 2024 and approval of its quarterly cash dividend.

For the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024:

  • net income was $14.2 million compared to $13.1 million;
  • diluted earnings per share (“EPS”) was $0.83 compared to $0.76;
  • annualized return on assets (“ROA”) was 1.27% compared to 1.17%;
  • annualized return on equity (“ROE”) was 10.32% compared to 9.76%;
  • net interest margin was 4.09% compared to 4.00%;
  • provision for credit losses was a benefit of $855,000 compared to a provision of $3.0 million; and
  • quarterly cash dividends increased $0.01 per share, or 9.09%, to $0.12 per share totaling $2.1 million compared to $0.11 per share totaling $1.9 million.

For the year ended December 31, 2024 compared to the year ended December 31, 2023:

  • net income was $54.8 million compared to $50.0 million;
  • diluted EPS was $3.20 compared to $2.97;
  • ROA was 1.23% compared to 1.17%;
  • ROE was 10.37% compared to 10.62%;
  • net interest margin was 4.05% compared to 4.22%;
  • provision for credit losses was $7.5 million compared to $15.1 million; and
  • cash dividends of $0.45 per share totaling $7.7 million compared to $0.41 per share totaling $6.9 million.

Results for the year ended December 31, 2023 includes the impact of the merger of Quantum Capital Corp. (“Quantum”) into the Company effective February 12, 2023. The addition of Quantum contributed total assets of $656.7 million, including loans of $561.9 million, and $570.6 million of deposits, all reflecting the impact of purchase accounting adjustments. Merger-related expenses of $4.7 million were recognized during the year ended December 31, 2023, while a $5.3 million provision for credit losses was recognized during the same period to establish allowances for credit losses on both Quantum’s loan portfolio and off-balance-sheet credit exposure.

The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.12 per common share payable on February 27, 2025 to shareholders of record as of the close of business on February 13, 2025.

“Fiscal year 2024 ended with another quarter of strong financial results,” said Hunter Westbrook, President and Chief Executive Officer. “We reported our tenth consecutive quarter with a net interest margin at or above 4.00% and have grown our tangible book value per share by 11% over the past year. I am convinced our ability to deliver strong financial results is directly correlated to creating a nationally and regionally recognized best place to work. Building on the recognition received in 2024, we recently announced we were named a 2025 America’s Best Workplace as well as 2025 Best Place to Work in Tennessee and Virginia by the Best Companies Group.

“During the quarter, the Bank engaged a consultant to assist in the renewal of our largest core IT processing contract, which resulted in the recognition of $3 million in consulting expense. This renewal will result both in future cost savings and the expansion of our technology solutions, supporting the Company’s growth initiatives and digital strategies all with the goal of enhancing the customer experience.

“Lastly, it’s hard to believe it’s been almost four months since Hurricane Helene impacted a portion of the communities we live in and serve. I continue to be amazed and impressed by the resilience of our teammates and customers, and with recovery well underway, we remain committed to working with those in the affected areas.”


WEBSITE: WWW.HTB.COM

Comparison of Results of Operations for the Three Months Ended December 31, 2024 and September 30,
2024


Net Income.
  Net income totaled $14.2 million, or $0.83 per diluted share, for the three months ended December 31, 2024 compared to $13.1 million, or $0.76 per diluted share, for the three months ended September 30, 2024, an increase of $1.1 million, or 8.4%. The results for the three months ended December 31, 2024 compared to the quarter ended September 30, 2024 were positively impacted by an increase of $1.1 million in net interest income and a decrease of $3.8 million in the provision for credit losses, partially offset by a $3.4 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.

  Three Months Ended
  December 31, 2024   September 30, 2024
(Dollars in thousands) Average

Balance

Outstanding 		  Interest

Earned/

Paid 		  Yield/

Rate 		  Average

Balance

Outstanding 		  Interest

Earned/

Paid 		  Yield/

Rate
Assets                      
Interest-earning assets                      
Loans receivable(1) $ 3,890,775     $ 62,224   6.36%     $ 3,899,460     $ 63,305   6.46%  
Debt securities available for sale   147,023       1,621   4.39       140,246       1,616   4.58  
Other interest-earning assets(2)   160,064       2,353   5.85       144,931       1,728   4.74  
Total interest-earning assets   4,197,862       66,198   6.27       4,184,637       66,649   6.34  
Other assets   263,750               264,579          
Total assets $ 4,461,612             $ 4,449,216          
Liabilities and equity                      
Interest-bearing liabilities                      
Interest-bearing checking accounts $ 559,033     $ 1,271   0.90%     $ 548,024     $ 1,278   0.93%  
Money market accounts   1,343,609       10,038   2.97       1,335,798       10,757   3.20  
Savings accounts   180,546       40   0.09       182,618       40   0.09  
Certificate accounts   1,005,914       11,225   4.44       1,012,765       11,617   4.56  
Total interest-bearing deposits   3,089,102       22,574   2.91       3,079,205       23,692   3.06  
Junior subordinated debt   10,104       223   8.78       10,079       235   9.28  
Borrowings   14,689       196   5.31       40,399       648   6.38  
Total interest-bearing liabilities   3,113,895       22,993   2.94       3,129,683       24,575   3.12  
Noninterest-bearing deposits   731,745               719,710          
Other liabilities   68,261               65,097          
Total liabilities   3,913,901               3,914,490          
Stockholders’ equity   547,711               534,726          
Total liabilities and stockholders’ equity $ 4,461,612             $ 4,449,216          
Net earning assets $ 1,083,967             $ 1,054,954          
Average interest-earning assets to average interest-bearing liabilities   134.81%               133.71%          
Non-tax-equivalent                      
Net interest income     $ 43,205           $ 42,074    
Interest rate spread         3.33%             3.22%  
Net interest margin(3)         4.09%             4.00%  
Tax-equivalent(4)                      
Net interest income     $ 43,594           $ 42,442    
Interest rate spread         3.37%             3.25%  
Net interest margin(3)         4.13%             4.03%  

(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 $389 and $368 for the three months ended December 31, 2024 and September 30, 2024, respectively, calculated based on a combined federal and state tax rate of 24%.

Total interest and dividend income for the three months ended December 31, 2024 decreased $451,000, or 0.7%, compared to the three months ended September 30, 2024, which was driven by a $1.1 million decrease in loan interest income, partially offset by a $625,000 increase in interest income on other investments and interest-bearing accounts. Accretion income on acquired loans of $1.2 million and $640,000 was recognized during the same periods, respectively, and was included in loan interest income.

Total interest expense for the three months ended December 31, 2024 decreased $1.6 million, or 6.4%, compared to the three months ended September 30, 2024, the result of a $1.1 million, or 4.7%, decrease in interest expense on deposits and a $452,000, or 69.8%, decrease in interest expense on borrowings. The decrease in interest expense on deposits can primarily be traced to decreases in the average cost of funds, while the decrease in interest expense on borrowings was the result of a decline in average borrowings outstanding.

The following table shows the effects that changes in average balances (volume), including differences 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 		  Total

Increase/

(Decrease)
(Dollars in thousands) Volume   Rate  
Interest-earning assets          
Loans receivable $ (141)     $ (940)     $ (1,081)  
Debt securities available for sale   78       (73)       5  
Other interest-earning assets   180       445       625  
Total interest-earning assets   117       (568)       (451)  
Interest-bearing liabilities          
Interest-bearing checking accounts   26       (33)       (7)  
Money market accounts   63       (782)       (719)  
Savings accounts   —       —       —  
Certificate accounts   (79)       (313)       (392)  
Junior subordinated debt   1       (13)       (12)  
Borrowings   (412)       (40)       (452)  
Total interest-bearing liabilities   (401)       (1,181)       (1,582)  
Increase in net interest income         $ 1,131  


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) December 31, 2024   September 30, 2024   $ Change   % Change
Provision for credit losses              
Loans $ (975)     $ 2,990     $ (3,965)     (133)%
Off-balance-sheet credit exposure   120       (15)       135     900
Total provision (benefit) for credit losses $ (855)     $ 2,975     $ (3,830)     (129)%

For the quarter ended December 31, 2024, the “loans” portion of the provision for credit losses was primarily the result of the following, offset by net charge-offs of $1.9 million during the quarter:

  • $1.3 million benefit driven by changes in the loan mix and a $50.6 million decrease in the loan portfolio.
  • $0.7 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments. Of note, we retained the $2.2 million qualitative allocation for the potential impact of Hurricane Helene upon our loan portfolio established in the prior quarter.
  • $0.9 million decrease in specific reserves on individually evaluated credits.

For the quarter ended September 30, 2024, the “loans” portion of the provision for credit losses was the result of the following, offset by net charge-offs of $4.1 million during the quarter:

  • $0.4 million benefit driven by changes in the loan mix.
  • $1.2 million provision due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments. Included in this change was the addition of a $2.2 million qualitative allocation for the potential impact of Hurricane Helene upon our loan portfolio.
  • $1.9 million decrease in specific reserves on individually evaluated loans as we charged-off specific reserves which had previously been established.

For the quarters ended December 31, 2024 and September 30, 2024, the amounts recorded for off-balance-sheet credit exposure were the result of changes in the balance of loan commitments, loan mix and the projected economic forecast as outlined above.


Noninterest Income.
  Noninterest income for the three months ended December 31, 2024 decreased $39,000, or 0.5%, when compared to the quarter ended September 30, 2024. Changes in the components of noninterest income are discussed below:

  Three Months Ended    
(Dollars in thousands) December 31, 2024   September 30, 2024   $ Change   % Change
Noninterest income              
Service charges and fees on deposit accounts $ 2,326   $ 2,336   $ (10)     —%  
Loan income and fees   728     684     44     6  
Gain on sale of loans held for sale   1,068     1,900     (832)     (44)  
Bank owned life insurance (“BOLI”) income   842     828     14     2  
Operating lease income   2,259     1,637     622     38  
Other   1,020     897     123     14  
Total noninterest income $ 8,243   $ 8,282   $ (39)     —%  
  • Gain on sale of loans held for sale: The decrease was driven by declines in the volume of HELOCs, Small Business Administration (“SBA”) commercial loans, and residential mortgage loans sold during the period. There were $23.8 million of residential mortgages originated for sale sold during the current quarter with gains of $269,000 compared to $21.7 million sold with gains of $479,000 in the prior quarter, with the decrease in profitability due to movement in interest rates. There were $10.2 million in sales of the guaranteed portion of SBA commercial loans with gains of $733,000 for the current quarter compared to $12.9 million sold and gains of $1.0 million for the prior quarter. No HELOCs were sold during the current quarter compared to $54.6 million sold with gains of $414,000 in the prior quarter. Lastly, our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in gains of $66,000 and $18,000 in the same periods, respectively.
  • Operating lease income: The increase was primarily the result of a $136,000 decrease in losses incurred on the sale of, and a $475,000 reduction in the valuation allowance against, previously leased equipment.


Noninterest Expense.
  Noninterest expense for the three months ended December 31, 2024 increased $3.4 million, or 11.2%, when compared to the three months ended September 30, 2024. Changes in the components of noninterest expense are discussed below:

  Three Months Ended    
(Dollars in thousands) December 31, 2024   September 30, 2024   $ Change   % Change
Noninterest expense              
Salaries and employee benefits $ 17,234   $ 17,082   $ 152     1%  
Occupancy expense, net   2,476     2,436     40     2  
Computer services   3,110     3,192     (82)     (3)  
Operating lease depreciation expense   2,068     2,101     (33)     (2)  
Telephone, postage and supplies   541     547     (6)     (1)  
Marketing and advertising   234     408     (174)     (43)  
Deposit insurance premiums   556     589     (33)     (6)  
Core deposit intangible amortization   567     567     —     —  
Contract renewal consulting fee   2,965     —     2,965     100  
Other   4,258     3,663     595     16  
Total noninterest expense $ 34,009   $ 30,585   $ 3,424     11%  
  • Marketing and advertising: The decrease is the result of a reduction in advertising in the current quarter in response to the election, and the holiday season.
  • Contract renewal consulting fee: In the current quarter we paid a fee to a consultant to negotiate the multiyear renewal of our largest core processing contract.
  • Other: The increase is primarily the result of referral fees paid to expand our community association banking deposit line of business.


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 December 31, 2024 and September 30, 2024 were 22.3% and 21.9%, respectively.

Comparison of Results of Operations for the Years Ended December 31
,
2024
and December 31, 2023


Net Income.
  Net income totaled $54.8 million, or $3.20 per diluted share, for the year ended December 31, 2024 compared to $50.0 million, or $2.97 per diluted share, for the year ended December 31, 2023, an increase of $4.8 million, or 9.5%. The results for the year ended December 31, 2024 compared to the prior year were positively impacted by a $7.6 million decrease in the provision for credit losses and a $1.4 million increase in noninterest income, partially offset by a $758,000 decrease in net interest income and 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.

  Years Ended December 31,
    2024       2023  
(Dollars in thousands) Average

Balance

Outstanding 		  Interest

Earned/

Paid 		  Yield/

Rate 		  Average

Balance

Outstanding 		  Interest

Earned/

Paid 		  Yield/

Rate
Assets                      
Interest-earning assets                      
Loans receivable(1) $ 3,884,984     $ 247,642   6.37%     $ 3,732,796     $ 222,595   5.96%  
Debt securities available for sale   137,108       6,045   4.41       151,110       5,037   3.33  
Other interest-earning assets(2)   144,262       7,929   5.50       133,108       6,849   5.15  
Total interest-earning assets   4,166,354       261,616   6.28       4,017,014       234,481   5.84  
Other assets   273,307               268,102          
Total assets $ 4,439,661             $ 4,285,116          
Liabilities and equity                      
Interest-bearing liabilities                      
Interest-bearing checking accounts $ 570,952     $ 5,420   0.95%     $ 619,034     $ 4,450   0.72%  
Money market accounts   1,314,867       40,680   3.09       1,217,474       27,534   2.26  
Savings accounts   185,712       164   0.09       213,601       188   0.09  
Certificate accounts   952,602       42,003   4.41       692,338       23,072   3.33  
Total interest-bearing deposits   3,024,133       88,267   2.92       2,742,447       55,244   2.01  
Junior subordinated debt   10,067       928   9.22       8,826       802   9.09  
Borrowings   61,205       3,746   6.12       158,374       9,002   5.68  
Total interest-bearing liabilities   3,095,405       92,941   3.00       2,909,647       65,048   2.24  
Noninterest-bearing deposits   757,472               852,207          
Other liabilities   58,496               52,155          
Total liabilities   3,911,373               3,814,009          
Stockholders’ equity   528,288               471,107          
Total liabilities and stockholders’ equity $ 4,439,661             $ 4,285,116          
Net earning assets $ 1,070,949             $ 1,107,367          
Average interest-earning assets to average interest-bearing liabilities   134.60%               138.06%          
Non-tax-equivalent                      
Net interest income     $ 168,675           $ 169,433    
Interest rate spread         3.28%             3.60%  
Net interest margin(3)         4.05%             4.22%  
Tax-equivalent(4)                      
Net interest income     $ 170,135           $ 170,677    
Interest rate spread         3.31%             3.63%  
Net interest margin(3)         4.08%             4.25%  

(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 $1,460 and $1,244 for the years ended December 31, 2024 and 2023, respectively, calculated based on a combined federal and state tax rate of 24%.

Total interest and dividend income for the year ended December 31, 2024 increased $27.1 million, or 11.6%, compared to the year ended December 31, 2023, which was driven by a $25.0 million increase in loan interest income, a $1.1 million increase in interest income on other investments and interest-bearing accounts, and a $1.0 million increase in interest income on debt securities available for sale. Accretion income on acquired loans of $3.2 million and $2.1 million was recognized during the same periods, respectively, and was included in loan interest income.

Total interest expense for the year ended December 31, 2024 increased $27.9 million, or 42.9%, compared to the year ended December 31, 2023, the result of a $33.0 million, or 59.8%, increase in interest expense on deposits and a $5.3 million, or 58.4%, decrease in interest expense on borrowings. The increase in interest expense on deposits was primarily the result of both increases in the average cost of funds across funding sources and average deposits, while the decrease in interest expense on borrowings was the result of a decline in average borrowings outstanding.

The following table shows the effects that changes in average balances (volume), including differences 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 		  Total

Increase/

(Decrease)
(Dollars in thousands) Volume   Rate  
Interest-earning assets          
Loans receivable $ 9,075     $ 15,972   $ 25,047  
Debt securities available for sale   (467)       1,475     1,008  
Other interest-earning assets   574       506     1,080  
Total interest-earning assets   9,182       17,953     27,135  
Interest-bearing liabilities          
Interest-bearing checking accounts   (346)       1,316     970  
Money market accounts   2,203       10,943     13,146  
Savings accounts   (25)       1     (24)  
Certificate accounts   8,673       10,258     18,931  
Junior subordinated debt   113       13     126  
Borrowings   (5,523)       267     (5,256)  
Total interest-bearing liabilities   5,095       22,798     27,893  
Decrease in net interest income         $ (758)  


Provision for Credit Losses.
  The following table presents a breakdown of the components of the provision for credit losses:

  Years Ended December 31,    
(Dollars in thousands)   2024     2023     $ Change   % Change
Provision for credit losses              
Loans $ 7,460   $ 16,170     $ (8,710)     (54)%
Off-balance-sheet credit exposure   85     (1,075)       1,160     108
Total provision for credit losses $ 7,545   $ 15,095     $ (7,550)     (50)%

For the year ended December 31, 2024, the “loans” portion of the provision for credit losses was the result of the following, offset by net charge-offs of $10.8 million during the period:

  • $1.6 million benefit driven by changes in the loan mix.
  • $0.7 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.
  • $1.0 million decrease in specific reserves on individually evaluated credits.

For the year ended December 31, 2023, the “loans” portion of the provision for credit losses was the result of the following, offset by net charge-offs of $6.7 million during the period:

  • $4.9 million provision to establish an allowance on Quantum’s loan portfolio.
  • $1.4 million provision driven by changes in the loan mix.
  • $2.1 million provision due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.
  • $1.1 million increase in specific reserves on individually evaluated credits.

For the years ended December 31, 2024 and December 31, 2023, the amounts recorded for off-balance-sheet credit exposure were the result of changes in the balance of loan commitments, loan mix and the projected economic forecast as outlined above.


Noninterest Income.
  Noninterest income for the year ended December 31, 2024 increased $1.4 million, or 4.3%, when compared to the same period last year. Changes in the components of noninterest income are discussed below:

  Years Ended December 31,    
(Dollars in thousands)   2024       2023   $ Change   % Change
Noninterest income              
Service charges and fees on deposit accounts $ 9,165     $ 9,335   $ (170)     (2)%  
Loan income and fees   2,737       2,336     401     17  
Gain on sale of loans held for sale   6,253       5,250     1,003     19  
BOLI income   4,312       4,996     (684)     (14)  
Operating lease income   7,346       6,107     1,239     20  
Gain (loss) on sale of premises and equipment   (9)       734     (743)     (101)  
Other   3,645       3,315     330     10  
Total noninterest income $ 33,449     $ 32,073   $ 1,376     4%  
  • Loan income and fees: The increase was primarily driven by loan servicing income associated with SBA loans.
  • Gain on sale of loans held for sale: The increase was primarily driven by an increase in the premiums received on SBA loans sold during the current period. During the year ended December 31, 2024, there were $48.7 million of sales of the guaranteed portion of SBA commercial loans with gains of $3.9 million compared to $46.7 million sold with gains of $3.0 million during the prior year, with the improvement in profitability due to more favorable pricing on the secondary market. There were $95.4 million of HELOCs sold during the current period with gains of $887,000 compared to $104.0 million sold with gains of $873,000 in the prior year. There were $82.0 million of residential mortgages originated for sale sold with gains of $1.4 million compared to $69.3 million sold with gains of $1.1 million in the prior year. Lastly, our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in gains of $81,000 and $284,000 in the same periods, respectively.
  • BOLI income: The decrease was primarily the result of a $1.5 million decrease in tax-free gains on death benefit proceeds in excess of the cash surrender value of the policies compared to the prior year, partially offset by the impact of higher yielding policies due to the partial restructuring of the portfolio at the end of the prior year.
  • Operating lease income: The increase was the result of $2.1 million in additional contract earnings on a higher average outstanding balance of associated contracts, partially offset by an $805,000 increase in the valuation allowance against previously leased equipment.
  • Gain (loss) on sale of premises and equipment: During the prior year, three properties were sold for a combined net gain of $734,000. No material disposal activity occurred during the year ended December 31, 2024.


Noninterest Expense.
  Noninterest expense for the year ended December 31, 2024 increased $1.6 million, or 1.3%, when compared to the same period last year. Changes in the components of noninterest expense are discussed below:

  Years Ended December 31,    
(Dollars in thousands)   2024     2023   $ Change   % Change
Noninterest expense              
Salaries and employee benefits $ 67,900   $ 65,692   $ 2,208     3%  
Occupancy expense, net   9,768     9,999     (231)     (2)  
Computer services   12,506     12,388     118     1  
Operating lease depreciation expense   7,734     5,406     2,328     43  
Telephone, postage and supplies   2,253     2,545     (292)     (11)  
Marketing and advertising   1,893     2,180     (287)     (13)  
Deposit insurance premiums   2,230     2,580     (350)     (14)  
Core deposit intangible amortization   2,463     3,184     (721)     (23)  
Merger-related expenses   —     4,741     (4,741)     (100)  
Contract renewal consulting fee   2,965     —     2,965     100  
Other   14,956     14,374     582     4  
Total noninterest expense $ 124,668   $ 123,089   $ 1,579     1%  
  • Salaries and employee benefits: The increase was primarily the result of pay increases, partially offset by reductions in incentive pay.
  • Operating lease depreciation expense: The increase was due to a higher average outstanding balance of associated contracts.
  • Core deposit intangible amortization: The intangible recorded associated with the Quantum merger is being amortized on an accelerated basis, so the rate of amortization slowed year-over-year.
  • Merger-related expenses: The prior period included expenses associated with the Company’s merger with Quantum. No such expenses were incurred in the year ended December 31, 2024.
  • Contract renewal consulting fee: In the current quarter we paid a fee to a consultant to negotiate the multiyear renewal of our largest core processing contract.


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 year ended December 31, 2024 and 2023 were 21.6% and 21.0%, respectively.

Balance Sheet Review

Total assets decreased by $77.2 million to $4.6 billion and total liabilities decreased by $129.1 million to $4.0 billion at December 31, 2024 as compared to December 31, 2023. The majority of these changes were the result of an increase in deposits, which, combined with the collection of BOLI redemption proceeds and cash and cash equivalents, were used to pay down borrowings.

Stockholders’ equity increased $51.9 million, or 10.4%, to $551.8 million at December 31, 2024 as compared to December 31, 2023. Activity within stockholders’ equity included $54.8 million in net income and $5.9 million in stock-based compensation and stock option exercises, partially offset by $7.7 million in cash dividends declared.

As of December 31, 2024, the Bank was considered “well capitalized” in accordance with its regulatory capital guidelines and exceeded all regulatory capital requirements.

Asset Quality

The ACL on loans was $45.3 million, or 1.24% of total loans, at December 31, 2024 compared to $48.6 million, or 1.34% of total loans, at December 31, 2023. The drivers of this change are discussed in the “Comparison of Results of Operations for the Years Ended December 31, 2024 and December 31, 2023 – Provision for Credit Losses” section above.

Net loan charge-offs totaled $10.8 million for the year ended December 31, 2024 compared to $6.7 million for the prior year. As discussed in previous quarters, the increase in net charge-offs has been concentrated in our equipment finance portfolio, primarily smaller over-the-road truck loans, with net charge-offs of $6.7 million during the year ended December 31, 2024. In response, during the first quarter of calendar year 2024 the Company elected to cease further originations within the transportation sector of equipment finance loans. Annualized net charge-offs as a percentage of average assets for the loan portfolio as a whole were 0.28% and 0.18% for the years ended December 31, 2024 and 2023, respectively.

Nonperforming assets, made up of nonaccrual loans and repossessed assets, increased by $9.4 million, or 48.8%, to $28.8 million, or 0.63% of total assets, at December 31, 2024 compared to $19.3 million, or 0.41% of total assets, at December 31, 2023. Owner occupied commercial real estate (“CRE”) made up the largest portion of nonperforming assets at $8.5 million and $912,000, respectively, at these same dates. Of the December 31, 2024 balance, one relationship made up $5.0 million of the total and a loss is not anticipated. In addition, equipment finance loans made up $4.7 million and $6.5 million, respectively, at these same dates, concentrated in the transportation sector consistent with the change in net charge-offs. The ratio of nonperforming loans to total loans was 0.76% at December 31, 2024 compared to 0.53% at December 31, 2023.

The ratio of classified assets to total assets increased to 1.06% at December 31, 2024 from 0.88% at December 31, 2023 as classified assets increased $7.6 million to $48.8 million at December 31, 2024 compared to $41.2 million at December 31, 2023. The largest portfolios of classified assets at December 31, 2024 included $11.3 million of non-owner occupied CRE loans, $9.2 million of SBA loans, $7.5 million of equipment finance loans, $6.7 million of 1-4 family residential real estate loans, $5.9 million of owner occupied CRE loans, and $4.7 million of revolving mortgages.

Lastly, in an effort to assist customers in their post-Hurricane Helene recovery and clean-up efforts, this quarter we granted payment deferrals of up to six months to provide short-term relief to impacted customers. The outstanding balance of these deferrals was $136.0 million at December 31, 2024. As of this same date, the Company maintained the prior quarter $2.2 million ACL allocation for the potential impact of the storm on this portion of our loan portfolio.

About HomeTrust Bancshares, Inc.
HomeTrust Bancshares, Inc. is the holding company for the Bank. As of December 31, 2024, the Company had assets of $4.6 billion. The Bank, founded in 1926, is a North Carolina state chartered, community-focused financial institution committed to providing value added relationship banking with over 30 locations as well as online/mobile channels. Locations include: North Carolina (the Asheville metropolitan area, the “Piedmont” region, Charlotte and Raleigh/Cary), South Carolina (Greenville and Charleston), East Tennessee (Kingsport/Johnson City, Knoxville and Morristown), Southwest Virginia (the Roanoke Valley) and Georgia (Greater Atlanta).


Forward-Looking Statements


This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but instead are based on certain assumptions including statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by forward-looking statements. The factors that could result in material differentiation include, but are not limited to, the impact of bank failures or adverse developments involving other banks and related negative press about the banking industry in general on investor and depositor sentiment; the remaining effects of the COVID-19 pandemic on general economic and financial market conditions and on public health, both nationally and in the Company’s market areas; natural disasters, including the effects of Hurricane Helene; expected revenues, cost savings, synergies and other benefits from merger and acquisition activities might not be realized to the extent anticipated, within the anticipated time frames, or at all, costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected, and goodwill impairment charges might be incurred; increased competitive pressures among financial services companies; changes in the interest rate environment; changes in general economic conditions, both nationally and in our market areas; legislative and regulatory changes; and the effects of inflation, a potential recession, and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission – which are available on the Company’s website at www.htb.com and on the SEC’s website at www.sec.gov. Any of the forward-looking statements that the Company makes in this press release or in the documents the Company files with or furnishes to the SEC are based upon management’s beliefs and assumptions at the time they are made and may turn out to be wrong because of inaccurate assumptions, the factors described above or other factors that management cannot foresee. The Company does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.


Consolidated Balance Sheets (Unaudited)

(Dollars in thousands) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023

(1)
Assets                  
Cash $ 18,778     $ 18,980     $ 18,382     $ 16,134     $ 18,307  
Interest-bearing deposits   260,441       274,497       275,808       364,359       328,833  
Cash and cash equivalents   279,219       293,477       294,190       380,493       347,140  
Certificates of deposit in other banks   28,538       29,290       32,131       33,625       34,722  
Debt securities available for sale, at fair value   152,011       140,552       134,135       120,807       126,950  
FHLB and FRB stock   13,630       18,384       19,637       13,691       18,393  
SBIC investments, at cost   15,117       15,489       15,462       14,568       13,789  
Loans held for sale, at fair value   4,144       2,968       1,614       2,764       3,359  
Loans held for sale, at the lower of cost or fair value   202,018       189,722       224,976       220,699       198,433  
Total loans, net of deferred loan fees and costs   3,648,299       3,698,892       3,701,454       3,648,152       3,640,022  
Allowance for credit losses – loans   (45,285)       (48,131)       (49,223)       (47,502)       (48,641)  
Loans, net   3,603,014       3,650,761       3,652,231       3,600,650       3,591,381  
Premises and equipment, net   69,872       69,603       69,880       70,588       70,937  
Accrued interest receivable   18,336       17,523       18,412       16,944       16,902  
Deferred income taxes, net   10,735       10,100       10,512       11,222       11,796  
BOLI   90,868       90,021       89,176       88,369       88,257  
Goodwill   34,111       34,111       34,111       34,111       34,111  
Core deposit intangibles, net   6,595       7,162       7,730       8,297       9,059  
Other assets   67,222       68,130       66,667       67,183       107,404  
Total assets $ 4,595,430     $ 4,637,293     $ 4,670,864     $ 4,684,011     $ 4,672,633  
Liabilities and stockholders’ equity                  
Liabilities                  
Deposits $ 3,779,203     $ 3,761,588     $ 3,707,779     $ 3,799,807     $ 3,661,373  
Junior subordinated debt   10,120       10,096       10,070       10,045       10,021  
Borrowings   188,000       260,013       364,513       291,513       433,763  
Other liabilities   66,349       65,592       64,874       69,473       67,583  
Total liabilities   4,043,672       4,097,289       4,147,236       4,170,838       4,172,740  
Stockholders’ equity                  
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding   —       —       —       —       —  
Common stock, $0.01 par value, 60,000,000 shares authorized (2)   175       175       175       175       174  
Additional paid in capital   176,693       175,495       172,907       172,919       172,366  
Retained earnings   380,541       368,383       357,147       346,598       333,401  
Unearned Employee Stock Ownership Plan (“ESOP”) shares   (3,966)       (4,099)       (4,232)       (4,364)       (4,497)  
Accumulated other comprehensive income (loss)   (1,685)       50       (2,369)       (2,155)       (1,551)  
Total stockholders’ equity   551,758       540,004       523,628       513,173       499,893  
Total liabilities and stockholders’ equity $ 4,595,430     $ 4,637,293     $ 4,670,864     $ 4,684,011     $ 4,672,633  

(1) Derived from audited financial statements.
(2) Shares of common stock issued and outstanding were 17,527,709 at December 31, 2024; 17,514,922 at September 30, 2024; 17,437,326 at June 30, 2024; 17,444,787 at March 31, 2024; and 17,387,069 at December 31, 2023.


Consolidated Statements of Income (Unaudited)

  Three Months Ended   Years Ended
(Dollars in thousands) December 31, 2024   September 30, 2024   December 31, 2024   December 31, 2023
Interest and dividend income              
Loans $ 62,224     $ 63,305   $ 247,642     $ 222,595
Debt securities available for sale   1,621       1,616     6,045       5,037
Other investments and interest-bearing deposits   2,353       1,728     7,929       6,849
Total interest and dividend income   66,198       66,649     261,616       234,481
Interest expense              
Deposits   22,574       23,692     88,267       55,244
Junior subordinated debt   223       235     928       802
Borrowings   196       648     3,746       9,002
Total interest expense   22,993       24,575     92,941       65,048
Net interest income   43,205       42,074     168,675       169,433
Provision (benefit) for credit losses   (855)       2,975     7,545       15,095
Net interest income after provision (benefit) for credit losses   44,060       39,099     161,130       154,338
Noninterest income              
Service charges and fees on deposit accounts   2,326       2,336     9,165       9,335
Loan income and fees   728       684     2,737       2,336
Gain on sale of loans held for sale   1,068       1,900     6,253       5,250
BOLI income   842       828     4,312       4,996
Operating lease income   2,259       1,637     7,346       6,107
Gain (loss) on sale of premises and equipment   —       —     (9)       734
Other   1,020       897     3,645       3,315
Total noninterest income   8,243       8,282     33,449       32,073
Noninterest expense              
Salaries and employee benefits   17,234       17,082     67,900       65,692
Occupancy expense, net   2,476       2,436     9,768       9,999
Computer services   3,110       3,192     12,506       12,388
Operating lease depreciation expense   2,068       2,101     7,734       5,406
Telephone, postage and supplies   541       547     2,253       2,545
Marketing and advertising   234       408     1,893       2,180
Deposit insurance premiums   556       589     2,230       2,580
Core deposit intangible amortization   567       567     2,463       3,184
Merger-related expenses   —       —     —       4,741
Contract renewal consulting fee   2,965       —     2,965       —
Other   4,258       3,663     14,956       14,374
Total noninterest expense   34,009       30,585     124,668       123,089
Income before income taxes   18,294       16,796     69,911       63,322
Income tax expense   4,086       3,684     15,106       13,278
Net income $ 14,208     $ 13,112   $ 54,805     $ 50,044


Per Share Data

  Three Months Ended    Years Ended
  December 31, 2024   September 30, 2024   December 31, 2024   December 31, 2023
Net income per common share(1)              
Basic $ 0.83   $ 0.77   $ 3.21   $ 2.98
Diluted $ 0.83   $ 0.76   $ 3.20   $ 2.97
Average shares outstanding              
Basic   16,983,751     16,931,793     16,914,741     16,604,881
Diluted   17,084,943     17,027,824     16,977,330     16,622,381
Book value per share at end of period $ 31.48   $ 30.83   $ 31.48   $ 28.75
Tangible book value per share at end of period(2) $ 29.24   $ 28.57   $ 29.24   $ 26.39
Cash dividends declared per common share $ 0.12   $ 0.11   $ 0.45   $ 0.41
Total shares outstanding at end of period   17,527,709     17,514,922     17,527,709     17,387,069

(1) Basic and diluted net income per common share have been prepared in accordance with the two-class method.
(2) See Non-GAAP reconciliations below for adjustments.


Selected Financial Ratios and Other Data

  Three Months Ended   Years Ended
  December 31, 2024   September 30, 2024   December 31, 2024   December 31, 2023
Performance ratios

(1)
 		         
Return on assets (ratio of net income to average total assets) 1.27%     1.17%     1.23%     1.17%  
Return on equity (ratio of net income to average equity) 10.32     9.76     10.37     10.62  
Yield on earning assets 6.27     6.34     6.28     5.84  
Rate paid on interest-bearing liabilities 2.94     3.12     3.00     2.24  
Average interest rate spread 3.33     3.22     3.28     3.60  
Net interest margin(2) 4.09     4.00     4.05     4.22  
Average interest-earning assets to average interest-bearing liabilities 134.81     133.71     134.60     138.06  
Noninterest expense to average total assets 3.03     2.73     2.81     2.87  
Efficiency ratio 66.10     60.74     61.68     61.08  
Efficiency ratio – adjusted(3) 59.89     60.30     60.12     59.36  

(1)   Ratios are annualized where appropriate.
(2)   Net interest income divided by average interest-earning assets.
(3)   See Non-GAAP reconciliations below for adjustments.

  At or For the Three Months Ended
  December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
Asset quality ratios                  
Nonperforming assets to total assets(1) 0.63%     0.64%     0.54%     0.43%     0.41%  
Nonperforming loans to total loans(1) 0.76     0.78     0.68     0.55     0.53  
Total classified assets to total assets 1.06     0.99     0.91     0.80     0.88  
Allowance for credit losses to nonperforming loans(1) 163.68     166.51     194.80     235.18     251.60  
Allowance for credit losses to total loans 1.24     1.30     1.33     1.30     1.34  
Net charge-offs to average loans (annualized) 0.19     0.42     0.27     0.24     0.29  
Capital ratios                  
Equity to total assets at end of period 12.01%     11.64%     11.21%     10.96%     10.70%  
Tangible equity to total tangible assets(2) 11.25     10.88     10.44     10.18     9.91  
Average equity to average assets 12.28     12.02     11.78     11.51     11.03  

(1) Nonperforming assets include nonaccruing loans and REO. There were no accruing loans more than 90 days past due at the dates indicated. At December 31, 2024, $13.0 million, or 47.1%, of nonaccruing loans were current on their loan payments.
(2) See Non-GAAP reconciliations below for adjustments.


Loans

(Dollars in thousands) December 31, 2024   September 30, 2024   June 30, 2024   March 31,
2024 		  December 31,
2023
Commercial real estate loans                  
Construction and land development $ 274,356     $ 300,905     $ 316,050     $ 304,727     $ 305,269  
Commercial real estate – owner occupied   545,490       544,689       545,631       532,547       536,545  
Commercial real estate – non-owner occupied   866,094       881,340       892,653       881,143       875,694  
Multifamily   120,425       114,155       92,292       89,692       88,623  
Total commercial real estate loans   1,806,365       1,841,089       1,846,626       1,808,109       1,806,131  
Commercial loans                  
Commercial and industrial   316,159       286,809       266,136       243,732       237,255  
Equipment finance   406,400       443,033       461,010       462,649       465,573  
Municipal leases   165,984       158,560       152,509       151,894       150,292  
Total commercial loans   888,543       888,402       879,655       858,275       853,120  
Residential real estate loans                  
Construction and land development   53,683       63,016       70,679       85,840       96,646  
One-to-four family   630,391       627,845       621,196       605,570       584,405  
HELOCs   195,288       194,909       188,465       184,274       185,878  
Total residential real estate loans   879,362       885,770       880,340       875,684       866,929  
Consumer loans   74,029       83,631       94,833       106,084       113,842  
Total loans, net of deferred loan fees and costs   3,648,299       3,698,892       3,701,454       3,648,152       3,640,022  
Allowance for credit losses – loans   (45,285)       (48,131)       (49,223)       (47,502)       (48,641)  
Loans, net $ 3,603,014     $ 3,650,761     $ 3,652,231     $ 3,600,650     $ 3,591,381  
                   


Deposits

(Dollars in thousands) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
Core deposits                  
Noninterest-bearing accounts $ 680,926   $ 684,501   $ 683,346   $ 773,901   $ 784,950
NOW accounts   575,238     534,517     561,789     600,561     591,270
Money market accounts   1,341,995     1,345,289     1,311,940     1,308,467     1,246,807
Savings accounts   181,317     179,762     185,499     191,302     194,486
Total core deposits   2,779,476     2,744,069     2,742,574     2,874,231     2,817,513
Certificates of deposit   999,727     1,017,519     965,205     925,576     843,860
Total $ 3,779,203   $ 3,761,588   $ 3,707,779   $ 3,799,807   $ 3,661,373


Non-GAAP Reconciliations


In addition to results presented in accordance with generally accepted accounting principles utilized in the United States (“GAAP”), this earnings release contains certain non-GAAP financial measures, which include: the efficiency ratio, tangible book value, tangible book value per share and the tangible equity to tangible assets ratio. The Company believes these non-GAAP financial measures and ratios as presented are useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time and in comparison to its competitors. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders’ equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Set forth below is a reconciliation to GAAP of the Company’s efficiency ratio:

  Three Months Ended   Years Ended
(Dollars in thousands) December 31, 2024   September 30, 2024   December 31, 2024   December 31, 2023
Noninterest expense $ 34,009   $ 30,585   $ 124,668     $ 123,089
Less: merger-related expenses   —     —     —       4,741
Less: contract renewal consulting fee   2,965     —     2,965       —
Noninterest expense – adjusted $ 31,044   $ 30,585   $ 121,703     $ 118,348
               
Net interest income $ 43,205   $ 42,074   $ 168,675     $ 169,433
Plus: tax-equivalent adjustment   389     368     1,460       1,244
Plus: noninterest income   8,243     8,282     33,449       32,073
Less: BOLI death benefit proceeds in excess of cash surrender value   —     —     1,143       2,646
Less: gain (loss) on sale of premises and equipment   —     —     (9)       734
Net interest income plus noninterest income – adjusted $ 51,837   $ 50,724   $ 202,450     $ 199,370

Efficiency ratio 66.10%     60.74%     61.68%     61.08%  
Efficiency ratio – adjusted 59.89%     60.30%     60.12%     59.36%  

Set forth below is a reconciliation to GAAP of tangible book value and tangible book value per share:

  As of
(Dollars in thousands, except per share data) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
Total stockholders’ equity $ 551,758   $ 540,004   $ 523,628   $ 513,173   $ 499,893
Less: goodwill, core deposit intangibles, net of taxes   39,189     39,626     40,063     40,500     41,086
Tangible book value $ 512,569   $ 500,378   $ 483,565   $ 472,673   $ 458,807
Common shares outstanding   17,527,709     17,514,922     17,437,326     17,444,787     17,387,069
Book value per share $ 31.48   $ 30.83   $ 30.03   $ 29.42   $ 28.75
Tangible book value per share $ 29.24   $ 28.57   $ 27.73   $ 27.10   $ 26.39

Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:

  As of
(Dollars in thousands) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
Tangible equity(1) $ 512,569   $ 500,378   $ 483,565   $ 472,673   $ 458,807
Total assets   4,595,430     4,637,293     4,670,864     4,684,011     4,672,633
Less: goodwill, core deposit intangibles, net of taxes   39,189     39,626     40,063     40,500     41,086
Total tangible assets $ 4,556,241   $ 4,597,667   $ 4,630,801   $ 4,643,511   $ 4,631,547

Tangible equity to tangible assets 11.25%     10.88%     10.44%     10.18%     9.91%  

(1) Tangible equity (or tangible book value) is equal to total stockholders’ equity less goodwill and core deposit intangibles, net of related deferred tax liabilities.



Contact:
C. Hunter Westbrook – President and Chief Executive Officer
Tony J. VunCannon – Executive Vice President, Chief Financial Officer, Corporate Secretary and Treasurer
828-259-3939