• HomeTrust Bancshares, Inc. Announces Financial Results for the Third Quarter of the Year Ending December 31, 2024 and an Increase in the Quarterly Dividend

    来源: Nasdaq GlobeNewswire / 24 10月 2024 07:30:01   America/Chicago

    ASHEVILLE, N.C., Oct. 24, 2024 (GLOBE NEWSWIRE) -- HomeTrust Bancshares, Inc. (NASDAQ: HTBI) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the third quarter of the year ending December 31, 2024 and an increase in its quarterly cash dividend.

    For the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024:

    • net income was $13.1 million compared to $12.4 million;
    • diluted earnings per share ("EPS") were $0.76 compared to $0.73;
    • annualized return on assets ("ROA") was 1.17% compared to 1.13%;
    • annualized return on equity ("ROE") was 9.76% compared to 9.58%;
    • net interest margin was 4.00% compared to 4.08%;
    • provision for credit losses was $3.0 million compared to $4.3 million; and
    • quarterly cash dividends continued at $0.11 per share totaling $1.9 million for both periods.

    For the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023:

    • net income was $40.6 million compared to $36.6 million;
    • diluted EPS were $2.37 compared to $2.18;
    • annualized ROA was 1.22% compared to 1.15%;
    • annualized ROE was 10.39% compared to 10.56%;
    • net interest margin was 4.03% compared to 4.29%;
    • provision for credit losses was $8.4 million compared to $11.7 million;
    • tax-free death benefit proceeds from life insurance were $1.1 million for both periods; and
    • cash dividends of $0.33 per share totaling $5.6 million compared to $0.30 per share totaling $5.1 million.

    Results for the nine months ended September 30, 2023 include 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 nine months ended September 30, 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, reflecting a $0.01, or 9.0%, increase over the previous quarter's dividend. This is the sixth increase of the quarterly dividend since the Company initiated cash dividends in November 2018. The dividend is payable on November 27, 2024 to shareholders of record as of the close of business on November 14, 2024.

    “We are pleased to report another quarter of strong financial results,” said Hunter Westbrook, President and Chief Executive Officer. “We maintained our top quartile net interest margin, our ninth straight quarter at 4.00% or more. In addition, noninterest income and expense were both in line with prior quarters. Our provision for credit losses of $3.0 million included an additional $2.2 million as a reserve build for the potential impact of Hurricane Helene upon our loan portfolio. We have begun working with our loan customers on payment deferrals of up to six months, and although we aren’t currently aware of any collectability issues, we will continue assessing the impact of the storm upon our customer base.

    “As you know, many of the communities we serve were affected by this storm, impacting both our employees and customers. I’d first like to thank our employees who have assisted in maintaining bank operations while also tending to their personal and familial responsibilities. It has been amazing to watch the teamwork, collaboration and personal sacrifice across all areas of the Bank as we remained functionally operational throughout the storm, including our electronic banking services and online operations. Currently, all of our banking locations are open with most of the affected areas in our markets recovering well and operating close to normal. As for our customers in the affected areas, it will take time to assess, react and recover from Hurricane Helene. We are committed to working with them to provide the banking support needed for their businesses and homes.

    “Lastly, I am thankful for the Company's financial strength and geographic diversification which we have built over the last decade, with respect to both our employees and customer base, which provides the foundation to overcome unforeseen events such as this storm. We remain optimistic as we work together to continue the recovery.”

    WEBSITE: WWW.HTB.COM

    Comparison of Results of Operations for the Three Months Ended September 30, 2024 and June 30, 2024
    Net Income.  Net income totaled $13.1 million, or $0.76 per diluted share, for the three months ended September 30, 2024 compared to $12.4 million, or $0.73 per diluted share, for the three months ended June 30, 2024, an increase of $694,000, or 5.6%. Results for the three months ended September 30, 2024 were positively impacted by a decrease of $1.3 million in the provision for credit losses. 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
     September 30, 2024 June 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)$3,899,460  $63,305 6.46% $3,885,222  $62,161 6.43%
    Debt securities available for sale 140,246   1,616 4.58   134,334   1,495 4.48 
    Other interest-earning assets(2) 144,931   1,728 4.74   140,376   1,758 5.04 
    Total interest-earning assets 4,184,637   66,649 6.34   4,159,932   65,414 6.32 
    Other assets 264,579       266,983     
    Total assets$4,449,216      $4,426,915     
    Liabilities and equity           
    Interest-bearing liabilities           
    Interest-bearing checking accounts$548,024  $1,278 0.93% $586,396  $1,445 0.99%
    Money market accounts 1,335,798   10,757 3.20   1,298,177   10,221 3.17 
    Savings accounts 182,618   40 0.09   188,028   41 0.09 
    Certificate accounts 1,012,765   11,617 4.56   902,864   9,976 4.44 
    Total interest-bearing deposits 3,079,205   23,692 3.06   2,975,465   21,683 2.93 
    Junior subordinated debt 10,079   235 9.28   10,054   234 9.36 
    Borrowings 40,399   648 6.38   87,315   1,331 6.13 
    Total interest-bearing liabilities 3,129,683   24,575 3.12   3,072,834   23,248 3.04 
    Noninterest-bearing deposits 719,710       769,016     
    Other liabilities 65,097       63,503     
    Total liabilities 3,914,490       3,905,353     
    Stockholders' equity 534,726       521,562     
    Total liabilities and stockholders' equity$4,449,216      $4,426,915     
    Net earning assets$1,054,954      $1,087,098     
    Average interest-earning assets to average interest-bearing liabilities 133.71%      135.38%    
    Non-tax-equivalent           
    Net interest income  $42,074     $42,166  
    Interest rate spread    3.22%     3.28%
    Net interest margin(3)    4.00%     4.08%
    Tax-equivalent(4)           
    Net interest income  $42,442     $42,520  
    Interest rate spread    3.25%     3.32%
    Net interest margin(3)    4.03%     4.11%

    (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 $368 and $354 for the three months ended September 30, 2024 and June 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 September 30, 2024 increased $1.2 million, or 1.9%, compared to the three months ended June 30, 2024, which was driven by a $1.1 million, or 1.8%, increase in loan interest income primarily due to the difference in the number of days in each quarter. Accretion income on acquired loans of $640,000 and $678,000 was recognized during the same periods, respectively, and was included in interest income on loans.

    Total interest expense for the three months ended September 30, 2024 increased $1.3 million, or 5.7%, compared to the three months ended June 30, 2024. The increase was primarily the result of increases in the average balances of money market and certificate accounts, partially offset by a decline in average borrowings outstanding.

    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    		 Total
    Increase /
    (Decrease)
    (Dollars in thousands)Volume Rate 
    Interest-earning assets     
    Loans receivable$916  $228  $1,144 
    Debt securities available for sale 83   38   121 
    Other interest-earning assets 76   (106)  (30)
    Total interest-earning assets 1,075   160   1,235 
    Interest-bearing liabilities     
    Interest-bearing checking accounts (81)  (86)  (167)
    Money market accounts 413   123   536 
    Savings accounts (1)  —   (1)
    Certificate accounts 1,341   300   1,641 
    Junior subordinated debt 3   (2)  1 
    Borrowings (708)  25   (683)
    Total interest-bearing liabilities 967   360   1,327 
    Decrease in net interest income    $(92)


    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)September 30, 2024 June 30, 2024 $ Change % Change
    Provision for credit losses        
    Loans$2,990  $4,300  $(1,310) (30)%
    Off-balance-sheet credit exposure (15)  (40)  25  63 
    Total provision for credit losses$2,975  $4,260  $(1,285) (30)%


    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 quarter ended June 30, 2024, the "loans" portion of the provision for credit losses was the result of the following, in addition to net charge-offs of $2.6 million during the quarter:

    • $0.1 million provision driven by changes in the loan mix.
    • $0.4 million benefit due to changes in the projected economic forecast and changes in qualitative adjustments.
    • $2.0 million increase in specific reserves on individually evaluated loans which was proportional to the increase in the associated loan balances which increased from $8.3 million to $16.3 million quarter-over-quarter, concentrated in the equipment finance and SBA portfolios.

    For the quarters ended September 30, 2024 and June 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 projected economic forecast as outlined above.

    Noninterest Income.  Noninterest income for the three months ended September 30, 2024 increased $169,000, or 2.1%, when compared to the quarter ended June 30, 2024. Changes in the components of noninterest income are discussed below:

     Three Months Ended  
    (Dollars in thousands)September 30, 2024 June 30, 2024 $ Change % Change
    Noninterest income       
    Service charges and fees on deposit accounts$2,336  $2,354  $(18) (1)%
    Loan income and fees 684   647   37  6 
    Gain on sale of loans held for sale 1,900   1,828   72  4 
    Bank owned life insurance ("BOLI") income 828   807   21  3 
    Operating lease income 1,637   1,591   46  3 
    Other 897   886   11  1 
    Total noninterest income$8,282  $8,113  $169  2%
                   
    • Gain on sale of loans held for sale: The increase was primarily driven by residential mortgage loans sold during the period. There were $21.7 million of residential mortgage loans originated for sale which were sold during the current quarter with gains of $479,000 compared to $21.3 million sold with gains of $351,000 in the prior quarter, with the improvement in profitability due to movement in interest rates. There were $54.6 million of HELOCs sold for a gain of $414,000 compared to $32.9 million sold with gains of $457,000 in the prior quarter. There were $12.9 million in sales of the guaranteed portion of SBA commercial loans with gains of $1.0 million for the quarter compared to $12.7 million sold and gains of $1.1 million for the prior quarter. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a gain of $18,000 for the quarter ended September 30, 2024 versus a loss of $58,000 for the quarter ended June 30, 2024.

    Noninterest Expense.  Noninterest expense for the three months ended September 30, 2024 increased $375,000, or 1.2%, when compared to the three months ended June 30, 2024. Changes in the components of noninterest expense are discussed below:

     Three Months Ended  
    (Dollars in thousands)September 30, 2024 June 30, 2024 $ Change % Change
    Noninterest expense       
    Salaries and employee benefits$17,082  $16,608  $474  3%
    Occupancy expense, net 2,436   2,419   17  1 
    Computer services 3,192   3,116   76  2 
    Telephone, postage and supplies 547   580   (33) (6)
    Marketing and advertising 408   606   (198) (33)
    Deposit insurance premiums 589   531   58  11 
    Core deposit intangible amortization 567   567   —  — 
    Other 5,764   5,783   (19) — 
    Total noninterest expense$30,585  $30,210  $375  1%
                   
    • Salaries and employee benefits: The quarter-over-quarter increase was primarily the result of executive pay increases effective this quarter and additional stock incentive expense associated with the vesting of performance-based equity awards.
    • Marketing and advertising: The decrease in expense was the result of both differences in the timing of when expenses were incurred quarter-over-quarter as well as a reduction in traditional media advertising (print, billboards, etc.) in favor of digital platforms at lower costs.

    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 September 30, 2024 and June 30, 2024 were 21.9% and 21.4%, respectively.

    Comparison of Results of Operations for the Nine Months Ended September 30, 2024 and September 30, 2023
    Net Income.  Net income totaled $40.6 million, or $2.37 per diluted share, for the nine months ended September 30, 2024 compared to $36.6 million, or $2.18 per diluted share, for the nine months ended September 30, 2023, an increase of $4.0 million, or 11.0%. The results for the nine months ended September 30, 2024 were positively impacted by a decrease of $3.3 million in the provision for credit losses, a $1.4 million increase in noninterest income, and a $2.6 million decrease in noninterest expense, partially offset by a $2.0 million decrease in net interest income and a $1.3 million increase in income tax 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.

     Nine Months Ended
     September 30, 2024 September 30, 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)$3,883,040  $185,418 6.38% $3,684,518  $162,526 5.90%
    Debt securities available for sale 133,779   4,424 4.42   155,884   3,780 3.24 
    Other interest-earning assets(2) 138,956   5,576 5.36   137,065   5,356 5.22 
    Total interest-earning assets 4,155,775   195,418 6.28   3,977,467   171,662 5.77 
    Other assets 276,516       266,867     
    Total assets$4,432,291      $4,244,334     
    Liabilities and equity           
    Interest-bearing liabilities           
    Interest-bearing checking accounts$574,954  $4,149 0.96% $627,200  $3,241 0.69%
    Money market accounts 1,305,217   30,642 3.14   1,206,119   18,604 2.06 
    Savings accounts 187,447   124 0.09   218,683   143 0.09 
    Certificate accounts 934,702   30,778 4.40   649,755   14,967 3.08 
    Total interest-bearing deposits 3,002,320   65,693 2.92   2,701,757   36,955 1.83 
    Junior subordinated debt 10,054   705 9.37   8,428   563 8.93 
    Borrowings 76,823   3,550 6.17   158,965   6,634 5.58 
    Total interest-bearing liabilities 3,089,197   69,948 3.02   2,869,150   44,152 2.06 
    Noninterest-bearing deposits 766,110       857,315     
    Other liabilities 55,217       54,513     
    Total liabilities 3,910,524       3,780,978     
    Stockholders' equity 521,767       463,356     
    Total liabilities and stockholders' equity$4,432,291      $4,244,334     
    Net earning assets$1,066,578      $1,108,317     
    Average interest-earning assets to average interest-bearing liabilities 134.53%      138.63%    
    Non-tax-equivalent           
    Net interest income  $125,470     $127,510  
    Interest rate spread    3.26%     3.71%
    Net interest margin(3)    4.03%     4.29%
    Tax-equivalent           
    Net interest income  $126,542     $128,413  
    Interest rate spread    3.30%     3.74%
    Net interest margin(3)    4.07%     4.32%

    (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 $1,072 and $903 for the nine months ended September 30, 2024 and September 30, 2023, respectively, calculated based on a combined federal and state tax rate of 24%.

    Total interest and dividend income for the nine months ended September 30, 2024 increased $23.8 million, or 13.8%, compared to the nine months ended September 30, 2023, which was driven by a $22.9 million, or 14.1%, increase in interest income on loans. Accretion income on acquired loans of $2.0 million and $1.7 million was recognized during the same periods, respectively, and was included in interest income on loans. The overall increase in average yield on interest-earning assets was the result of both higher average balances and rising interest rates.

    Total interest expense for the nine months ended September 30, 2024 increased $25.8 million, or 58.4%, compared to the nine months ended September 30, 2023. The change was primarily the result of increases in the cost of funds across all funding sources driven by higher market interest rates and increases in the average balances of money market and certificate accounts, partially offset by a decline in average borrowings outstanding.

    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    		 Total
    Increase /
    (Decrease)
    (Dollars in thousands)Volume Rate 
    Interest-earning assets     
    Loans receivable$8,927  $13,965  $22,892 
    Debt securities available for sale (532)  1,176   644 
    Other interest-earning assets 79   141   220 
    Total interest-earning assets 8,474   15,282   23,756 
    Interest-bearing liabilities     
    Interest-bearing checking accounts (266)  1,174   908 
    Money market accounts 1,557   10,481   12,038 
    Savings accounts (20)  1   (19)
    Certificate accounts 6,592   9,219   15,811 
    Junior subordinated debt 109   33   142 
    Borrowings (3,425)  341   (3,084)
    Total interest-bearing liabilities 4,547   21,249   25,796 
    Decrease in net interest income    $(2,040)


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

     Nine Months Ended   
    (Dollars in thousands)September 30, 2024 September 30, 2023 $ Change % Change
    Provision for credit losses        
    Loans$8,435  $12,120  $(3,685) (30)%
    Off-balance-sheet credit exposure (35)  (385)  350  91 
    Total provision for credit losses$8,400  $11,735  $(3,335) (28)%


    For the nine months ended September 30, 2024, the "loans" portion of the provision for credit losses was the result of net charge-offs of $8.9 million during the period, partially offset by a $0.4 million benefit due to changes in the loan mix.

    For the nine months ended September 30, 2023, the "loans" portion of the provision for credit losses was the result of the following, in addition to net charge-offs of $3.9 million during the period:

    • $4.9 million provision to establish an allowance on Quantum's loan portfolio.
    • $3.0 million provision due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.
    • $0.3 million increase in specific reserves on individually evaluated credits.

    For the nine months ended September 30, 2024 and September 30, 2023, the amounts recorded for off-balance-sheet credit exposure were the result of changes in the balance of loan commitments, loan mix and projected economic forecast as outlined above.

    Noninterest Income.  Noninterest income for the nine months ended September 30, 2024 increased $1.4 million, or 5.8%, when compared to the same period last year. Changes in the components of noninterest income are discussed below:

     Nine Months Ended  
    (Dollars in thousands)September 30, 2024 September 30, 2023 $ Change % Change
    Noninterest income       
    Service charges and fees on deposit accounts$6,839  $6,967  $(128) (2)%
    Loan income and fees 2,009   1,913   96  5 
    Gain on sale of loans held for sale 5,185   4,213   972  23 
    BOLI income 3,470   2,844   626  22 
    Operating lease income 5,087   4,515   572  13 
    Gain (loss) on sale of premises and equipment (9)  982   (991) (101)
    Other 2,625   2,391   234  10 
    Total noninterest income$25,206  $23,825  $1,381  6%
                   
    • Gain on sale of loans held for sale: The increase in the gain on sale of loans held for sale was primarily driven by residential mortgage and SBA loans sold during the period. During the nine months ended September 30, 2024, there were $58.3 million of residential mortgage loans originated for sale which were sold with gains of $1.1 million compared to $48.7 million sold with gains of $633,000 for the corresponding period in the prior year, with the improvement in profitability due to movement in interest rates. There were $38.5 million of sales of the guaranteed portion of SBA commercial loans with gains of $3.1 million compared to $41.1 million sold and gains of $2.6 million for the corresponding period in the prior year. There were $95.4 million of HELOCs sold during the current period for a gain of $887,000 compared to $66.4 million sold and gains of $552,000 for the corresponding period in the prior year. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a gain of $15,000 for the nine months ended September 30, 2024 versus a gain of $426,000 for the nine months ended September 30, 2023.
    • BOLI income: The increase was due to higher yielding policies as a result of restructuring the portfolio at the end of the prior calendar year.
    • Operating lease income: The increase in operating lease income was the result of $1.7 million in additional contractual earnings on a higher average outstanding balance of the associated contracts, partially offset by losses incurred on previously leased equipment, where we recognized a net loss of $1.3 million for the nine months ended September 30, 2024 versus a net loss of $210,000 in the same period last year.
    • Gain (loss) on sale of premises and equipment: During the nine months ended September 30, 2023, two properties were sold for a combined gain of $982,000. No material disposal activity occurred during the nine months ended September 30, 2024.

    Noninterest Expense.  Noninterest expense for the nine months ended September 30, 2024 decreased $2.6 million, or 2.8%, when compared to the same period last year. Changes in the components of noninterest expense are discussed below:

     Nine Months Ended  
    (Dollars in thousands)September 30, 2024 September 30, 2023 $ Change % Change
    Noninterest expense       
    Salaries and employee benefits$50,666  $49,436  $1,230  2%
    Occupancy expense, net 7,292   7,556   (264) (3)
    Computer services 9,396   9,386   10  — 
    Telephone, postage and supplies 1,712   1,942   (230) (12)
    Marketing and advertising 1,659   1,555   104  7 
    Deposit insurance premiums 1,674   1,878   (204) (11)
    Core deposit intangible amortization 1,896   2,324   (428) (18)
    Merger-related expenses —   4,741   (4,741) (100)
    Other 16,364   14,490   1,874  13 
    Total noninterest expense$90,659  $93,308  $(2,649) (3)%
                  
    • Salaries and employee benefits: The increase was primarily the result of pay increases, partially offset by reductions in incentive pay.
    • 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 nine months ended September 30, 2024.
    • Other: The increase period-over-period was primarily driven by $1.7 million of additional depreciation expense on equipment subject to operating leases.

    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 nine months ended September 30, 2024 and September 30, 2023 were 21.3% and 21.0%, respectively.

    Balance Sheet Review
    Total assets decreased by $35.3 million to $4.6 billion and total liabilities decreased by $75.5 million to $4.1 billion, respectively, at September 30, 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 fund growth in loans and pay down borrowings.

    Stockholders' equity increased $40.1 million to $540.0 million at September 30, 2024 as compared to December 31, 2023. Activity within stockholders' equity included $40.6 million in net income and $4.5 million in stock-based compensation and stock option exercises, partially offset by $5.6 million in cash dividends declared. In addition, the improvement in the accumulated other comprehensive income was driven by a $1.6 million reduction of the unrealized loss on available for sale securities as a result of a decrease in market interest rates.

    As of September 30, 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 $48.1 million, or 1.30% of total loans, at September 30, 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 Nine Months Ended September 30, 2024 and September 30, 2023 – Provision for Credit Losses" section above.

    Net loan charge-offs totaled $8.9 million for the nine months ended September 30, 2024 compared to $3.9 million for the same period last 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 $5.1 million during the nine months ended September 30, 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. In spite of the increase, annualized net charge-offs as a percentage of average assets for the loan portfolio as a whole were 0.31% for the nine months ended September 30, 2024, in line with the Company's historical experience, as compared to 0.14% for the nine months ended September 30, 2023.

    Nonperforming assets, made up of nonaccrual loans and repossessed assets, increased by $10.4 million, or 54.0%, to $29.8 million, or 0.64% of total assets, at September 30, 2024 compared to $19.3 million, or 0.41% of total assets, at December 31, 2023. Consistent with the change in net charge-offs, equipment finance loans made up the largest portion of nonperforming assets at $8.5 million and $6.5 million, respectively, at these same dates. In addition, owner occupied commercial real estate totaled $7.2 million and $912,000, respectively, at these same dates. These increases were mainly the result of a $3.1 million medical equipment relationship and $5.1 million owner occupied commercial real estate (OO CRE) relationship; however, in both cases losses are not currently anticipated. The ratio of nonperforming loans to total loans was 0.78% at September 30, 2024 compared to 0.53% at December 31, 2023.

    The ratio of classified assets to total assets increased to 0.99% at September 30, 2024 from 0.90% at December 31, 2023 as classified assets increased $4.1 million, or 9.8%, to $46.1 million at September 30, 2024 compared to $42.0 million at December 31, 2023. The largest portfolios of classified assets at September 30, 2024 included $11.7 million of non-owner occupied commercial real estate loans, $8.4 million of equipment finance loans, $7.1 million of SBA loans, $6.0 million of 1-4 family residential real estate loans, and $6.0 million of OO CRE loans.

    About HomeTrust Bancshares, Inc.
    HomeTrust Bancshares, Inc. is the holding company for the Bank. As of September 30, 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)September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    (1)    		 September 30,
    2023
    Assets         
    Cash$18,980  $18,382  $16,134  $18,307  $18,090 
    Interest-bearing deposits 274,497   275,808   364,359   328,833   306,924 
    Cash and cash equivalents 293,477   294,190   380,493   347,140   325,014 
    Certificates of deposit in other banks 29,290   32,131   33,625   34,722   35,380 
    Debt securities available for sale, at fair value 140,552   134,135   120,807   126,950   134,348 
    FHLB and FRB stock 18,384   19,637   13,691   18,393   19,612 
    SBIC investments, at cost 15,489   15,462   14,568   13,789   14,586 
    Loans held for sale, at fair value 2,968   1,614   2,764   3,359   4,616 
    Loans held for sale, at the lower of cost or fair value 189,722   224,976   220,699   198,433   200,834 
    Total loans, net of deferred loan fees and costs 3,698,892   3,701,454   3,648,152   3,640,022   3,659,914 
    Allowance for credit losses – loans (48,131)  (49,223)  (47,502)  (48,641)  (47,417)
    Loans, net 3,650,761   3,652,231   3,600,650   3,591,381   3,612,497 
    Premises and equipment, net 69,603   69,880   70,588   70,937   72,463 
    Accrued interest receivable 17,523   18,412   16,944   16,902   16,513 
    Deferred income taxes, net 10,100   10,512   11,222   11,796   9,569 
    BOLI 90,021   89,176   88,369   88,257   106,059 
    Goodwill 34,111   34,111   34,111   34,111   34,111 
    Core deposit intangibles, net 7,162   7,730   8,297   9,059   9,918 
    Other assets 68,130   66,667   67,183   107,404   56,477 
    Total assets$4,637,293  $4,670,864  $4,684,011  $4,672,633  $4,651,997 
    Liabilities and stockholders' equity         
    Liabilities         
    Deposits$3,761,588  $3,707,779  $3,799,807  $3,661,373  $3,640,961 
    Junior subordinated debt 10,096   10,070   10,045   10,021   9,995 
    Borrowings 260,013   364,513   291,513   433,763   452,263 
    Other liabilities 65,592   64,874   69,473   67,583   64,367 
    Total liabilities 4,097,289   4,147,236   4,170,838   4,172,740   4,167,586 
    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   174   174 
    Additional paid in capital 175,495   172,907   172,919   172,366   171,663 
    Retained earnings 368,383   357,147   346,598   333,401   321,799 
    Unearned Employee Stock Ownership Plan ("ESOP") shares (4,099)  (4,232)  (4,364)  (4,497)  (4,629)
    Accumulated other comprehensive income (loss) 50   (2,369)  (2,155)  (1,551)  (4,596)
    Total stockholders' equity 540,004   523,628   513,173   499,893   484,411 
    Total liabilities and stockholders' equity$4,637,293  $4,670,864  $4,684,011  $4,672,633  $4,651,997 

    (1)  Derived from audited financial statements.
    (2)  Shares of common stock issued and outstanding were 17,514,922 at September 30, 2024; 17,437,326 at June 30, 2024; 17,444,787 at March 31, 2024; 17,387,069 at December 31, 2023; and 17,380,307 at September 30, 2023.


    Consolidated Statements of Income (Unaudited)

     Three Months Ended Nine Months Ended
    (Dollars in thousands)September 30,
    2024    		 June 30,
    2024    		 September 30,
    2024    		 September 30,
    2023
    Interest and dividend income       
    Loans$63,305  $62,161  $185,418  $162,526 
    Debt securities available for sale 1,616   1,495   4,424   3,780 
    Other investments and interest-bearing deposits 1,728   1,758   5,576   5,356 
    Total interest and dividend income 66,649   65,414   195,418   171,662 
    Interest expense       
    Deposits 23,692   21,683   65,693   36,955 
    Junior subordinated debt 235   234   705   563 
    Borrowings 648   1,331   3,550   6,634 
    Total interest expense 24,575   23,248   69,948   44,152 
    Net interest income 42,074   42,166   125,470   127,510 
    Provision for credit losses 2,975   4,260   8,400   11,735 
    Net interest income after provision for credit losses 39,099   37,906   117,070   115,775 
    Noninterest income       
    Service charges and fees on deposit accounts 2,336   2,354   6,839   6,967 
    Loan income and fees 684   647   2,009   1,913 
    Gain on sale of loans held for sale 1,900   1,828   5,185   4,213 
    BOLI income 828   807   3,470   2,844 
    Operating lease income 1,637   1,591   5,087   4,515 
    Gain (loss) on sale of premises and equipment —   —   (9)  982 
    Other 897   886   2,625   2,391 
    Total noninterest income 8,282   8,113   25,206   23,825 
    Noninterest expense       
    Salaries and employee benefits 17,082   16,608   50,666   49,436 
    Occupancy expense, net 2,436   2,419   7,292   7,556 
    Computer services 3,192   3,116   9,396   9,386 
    Telephone, postage and supplies 547   580   1,712   1,942 
    Marketing and advertising 408   606   1,659   1,555 
    Deposit insurance premiums 589   531   1,674   1,878 
    Core deposit intangible amortization 567   567   1,896   2,324 
    Merger-related expenses —   —   —   4,741 
    Other 5,764   5,783   16,364   14,490 
    Total noninterest expense 30,585   30,210   90,659   93,308 
    Income before income taxes 16,796   15,809   51,617   46,292 
    Income tax expense 3,684   3,391   11,020   9,712 
    Net income$13,112  $12,418  $40,597  $36,580 


    Per Share Data

      Three Months Ended  Nine Months Ended
      September 30,
    2024    		 June 30,
    2024    		 September 30,
    2024    		 September 30,
    2023
    Net income per common share(1)        
    Basic $0.77  $0.73  $2.38  $2.19 
    Diluted $0.76  $0.73  $2.37  $2.18 
    Average shares outstanding        
    Basic  16,931,793   16,883,028   16,891,619   16,532,335 
    Diluted  17,027,824   16,904,098   16,938,328   16,553,319 
    Book value per share at end of period $30.83  $30.03  $30.83  $27.87 
    Tangible book value per share at end of period(2) $28.57  $27.73  $28.57  $25.47 
    Cash dividends declared per common share $0.11  $0.11  $0.33  $0.30 
    Total shares outstanding at end of period  17,514,922   17,437,326   17,514,922   17,380,307 

    (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 Nine Months Ended
     September 30,
    2024    		 June 30,
    2024    		 September 30,
    2024    		 September 30,
    2023
    Performance ratios(1)     
    Return on assets (ratio of net income to average total assets)1.17% 1.13% 1.22% 1.15%
    Return on equity (ratio of net income to average equity)9.76  9.58  10.39  10.56 
    Yield on earning assets6.34  6.32  6.28  5.77 
    Rate paid on interest-bearing liabilities3.12  3.04  3.02  2.06 
    Average interest rate spread3.22  3.28  3.26  3.71 
    Net interest margin(2)4.00  4.08  4.03  4.29 
    Average interest-earning assets to average interest-bearing liabilities133.71  135.38  134.53  138.63 
    Noninterest expense to average total assets2.73  2.74  2.73  2.94 
    Efficiency ratio60.74  60.08  60.17  61.66 
    Efficiency ratio – adjusted(3)60.30  59.66  60.19  58.98 

    (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
     September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023
    Asset quality ratios         
    Nonperforming assets to total assets(1)0.64% 0.54% 0.43% 0.41% 0.25%
    Nonperforming loans to total loans(1)0.78  0.68  0.55  0.53  0.32 
    Total classified assets to total assets0.99  0.91  0.80  0.90  0.76 
    Allowance for credit losses to nonperforming loans(1)166.51  194.80  235.18  251.60  400.41 
    Allowance for credit losses to total loans1.30  1.33  1.30  1.34  1.30 
    Net charge-offs to average loans (annualized)0.42  0.27  0.24  0.29  0.27 
    Capital ratios         
    Equity to total assets at end of period11.64% 11.21% 10.96% 10.70% 10.41%
    Tangible equity to total tangible assets(2)10.88  10.44  10.18  9.91  9.60 
    Average equity to average assets12.02  11.78  11.51  11.03  10.84 

    (1)  Nonperforming assets include nonaccruing loans and repossessed assets. There were no accruing loans more than 90 days past due at the dates indicated. At September 30, 2024, $8.7 million, or 30.4%, of nonaccruing loans were current on their loan payments as of that date.
    (2)  See Non-GAAP reconciliations below for adjustments.


    Loans

    (Dollars in thousands)September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023
    Commercial real estate loans         
    Construction and land development$300,905  $316,050  $304,727  $305,269  $352,143 
    Commercial real estate – owner occupied 544,689   545,631   532,547   536,545   526,534 
    Commercial real estate – non-owner occupied 881,340   892,653   881,143   875,694   880,348 
    Multifamily 114,155   92,292   89,692   88,623   83,430 
    Total commercial real estate loans 1,841,089   1,846,626   1,808,109   1,806,131   1,842,455 
    Commercial loans         
    Commercial and industrial 286,809   266,136   243,732   237,255   237,366 
    Equipment finance 443,033   461,010   462,649   465,573   470,387 
    Municipal leases 158,560   152,509   151,894   150,292   147,821 
    Total commercial loans 888,402   879,655   858,275   853,120   855,574 
    Residential real estate loans         
    Construction and land development 63,016   70,679   85,840   96,646   103,381 
    One-to-four family 627,845   621,196   605,570   584,405   560,399 
    HELOCs 194,909   188,465   184,274   185,878   185,289 
    Total residential real estate loans 885,770   880,340   875,684   866,929   849,069 
    Consumer loans 83,631   94,833   106,084   113,842   112,816 
    Total loans, net of deferred loan fees and costs 3,698,892   3,701,454   3,648,152   3,640,022   3,659,914 
    Allowance for credit losses – loans (48,131)  (49,223)  (47,502)  (48,641)  (47,417)
    Loans, net$3,650,761  $3,652,231  $3,600,650  $3,591,381  $3,612,497 


    Deposits

    (Dollars in thousands)September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023
    Core deposits         
    Noninterest-bearing accounts$684,501  $683,346  $773,901  $784,950  $827,362 
    NOW accounts 534,517   561,789   600,561   591,270   602,804 
    Money market accounts 1,345,289   1,311,940   1,308,467   1,246,807   1,195,482 
    Savings accounts 179,762   185,499   191,302   194,486   202,971 
    Total core deposits 2,744,069   2,742,574   2,874,231   2,817,513   2,828,619 
    Certificates of deposit 1,017,519   965,205   925,576   843,860   812,342 
    Total$3,761,588  $3,707,779  $3,799,807  $3,661,373  $3,640,961 


    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 Nine Months Ended
    (Dollars in thousands) September 30,
    2024    		 June 30,
    2024    		 September 30,
    2024    		 September 30,
    2023
    Noninterest expense $30,585  $30,210  $90,659  $93,308 
    Less: merger expense  —   —   —   4,741 
    Noninterest expense – adjusted $30,585  $30,210  $90,659  $88,567 
             
    Net interest income $42,074  $42,166  $125,470  $127,510 
    Plus: tax-equivalent adjustment  368   354   1,072   903 
    Plus: noninterest income  8,282   8,113   25,206   23,825 
    Less: BOLI death benefit proceeds in excess of cash surrender value  —   —   1,143   1,092 
    Less: loss (gain) on sale of premises and equipment  —   —   (9)  982 
    Net interest income plus noninterest income – adjusted $50,724  $50,633  $150,614  $150,164 


    Efficiency ratio 60.74% 60.08% 60.17% 61.66%
    Efficiency ratio – adjusted 60.30% 59.66% 60.19% 58.98%
                 

    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) September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023
    Total stockholders' equity $540,004  $523,628  $513,173  $499,893  $484,411 
    Less: goodwill, core deposit intangibles, net of taxes  39,626   40,063   40,500   41,086   41,748 
    Tangible book value $500,378  $483,565  $472,673  $458,807  $442,663 
    Common shares outstanding  17,514,922   17,437,326   17,444,787   17,387,069   17,380,307 
    Book value per share $30.83  $30.03  $29.42  $28.75  $27.87 
    Tangible book value per share $28.57  $27.73  $27.10  $26.39  $25.47 

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

      As of
    (Dollars in thousands) September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023
    Tangible equity(1) $500,378  $483,565  $472,673  $458,807  $442,663 
    Total assets  4,637,293   4,670,864   4,684,011   4,672,633   4,651,997 
    Less: goodwill, core deposit intangibles, net of taxes  39,626   40,063   40,500   41,086   41,748 
    Total tangible assets $4,597,667  $4,630,801  $4,643,511  $4,631,547  $4,610,249 


    Tangible equity to tangible assets 10.88% 10.44% 10.18% 9.91% 9.60%

    (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

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