ASHEVILLE, N.C., July 23, 2026 (GLOBE NEWSWIRE) -- HomeTrust Bancshares, Inc. (NYSE: HTB) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the second quarter of the year ending December 31, 2026 and approval of its quarterly cash dividend.
For the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026:
-- net income was $15.6 million compared to $16.8 million;
-- diluted earnings per share ("EPS") were $0.94 compared to $0.99;
-- annualized return on assets ("ROA") was 1.46% compared to 1.55%;
-- annualized return on equity ("ROE") was 10.44% compared to 11.35%;
-- net interest margin was 4.41% compared to 4.31%;
-- provision for credit losses was $920,000 compared to $370,000;
-- gain on the sale of real estate was $1.1 million compared to $377,000;
-- loss on the redemption of junior subordinated debt securities was $1.1
million compared to $0;
-- quarterly cash dividends increased $0.02 per share, or 15.4%, to $0.15
per share totaling $2.4 million compared to $0.13 per share totaling $2.2
million; and
-- 153,606 shares of Company common stock were repurchased during the
current quarter at an average price of $46.31 compared to 533,240 shares
repurchased at an average price of $42.85 in the prior quarter.
For the six months ended June 30, 2026 compared to the six months ended June 30, 2025:
-- net income was $32.4 million compared to $31.7 million;
-- diluted EPS were $1.93 compared to $1.84;
-- annualized ROA was 1.51% compared to 1.46%;
-- annualized ROE was 10.89% compared to 11.26%;
-- net interest margin was 4.36% compared to 4.25%;
-- provision for credit losses was $1.3 million compared to $2.8 million;
-- cash dividends were $0.28 per share totaling $4.6 million compared to
$0.24 per share totaling $4.1 million; and
-- 686,846 shares of Company common stock were repurchased at an average
price of $43.62 compared to 93,212 shares of Company common stock
repurchased at an average price of $35.41 in the same period last year.
The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.15 per common share payable on August 27, 2026 to shareholders of record as of the close of business on August 13, 2026.
"We are pleased to report the continuation of our strong quarterly financial results driven by the expansion of our top-quartile net interest margin," said Hunter Westbrook, President and Chief Executive Officer. "The quarter was highlighted by loan growth of 8.5% annualized, which increases to 14.6% after excluding portfolios we are intentionally reducing. This growth is consistent with our intention to accelerate loan growth, reflecting the strength of our franchise and dedication of our team.
"Shortly after quarter end we were excited to announce the launch of our new Healthcare Banking Division. This is another important strategic step in expanding our relationship-oriented approach to banking, while ensuring we continue to meet the needs of the communities we are proud to serve.
"We have has previously stated our goal is to be a consistently high-performing regional community bank and a regionally and nationally recognized 'Best Place to Work.' Reflecting our progress, for a third straight year the Company was included in Forbes' America's Best Banks for 2026 and for a second straight year was included in the 2026 KBW Bank Honor Roll, a distinction granted to only 6% of eligible banks based on best-in-class earnings growth over the past ten years. HTB was also recognized on American Banker's 'Best Banks to Work For' list for the second consecutive year and as a best place to work for multiple years in all five states we serve. These recognitions demonstrate continued progress toward our goal and our commitment to building on that momentum. We remain focused on executing our strategy to continue delivering sustainable results and long-term value for all stakeholders."
WEBSITE: WWW.HTB.COM
Comparison of Results of Operations for the Three Months Ended June 30, 2026 and March 31, 2026
Net Income. Net income totaled $15.6 million, or $0.94 per diluted share, for the three months ended June 30, 2026 compared to $16.8 million, or $0.99 per diluted share, for the three months ended March 31, 2026, a decrease of $1.2 million, or 6.8%. The results for the three months ended June 30, 2026 compared to the three months ended March 31, 2026 were negatively impacted by a $784,000 decrease in noninterest income and a $1.0 million increase in noninterest expense due to a $1.1 million loss resulting from the redemption of junior subordinated debt securities, partially offset by a $1.0 million increase in net interest income. Details of the changes in the various components of net income are further discussed below.
Net Interest Income. The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.
Three Months Ended
June 30, 2026 March 31, 2026
---------------------------------- ----------------------------------
Average Interest Average Interest
Balance Earned / Yield / Balance Earned / Yield /
(Dollars in thousands) Outstanding Paid Rate Outstanding Paid Rate
-------------- -------- -------- -------------- -------- --------
Assets
Interest-earning assets
Loans receivable(1) $3,770,898 $ 57,507 6.12% $3,793,994 $ 57,725 6.17%
Debt securities
available for sale 152,647 1,667 4.38 144,520 1,604 4.50
Other
interest-earning
assets(2) 199,135 1,999 4.03 227,051 2,168 3.87
--------- ------- ---- --------- ------- ----
Total
interest-earning
assets 4,122,680 61,173 5.95 4,165,565 61,497 5.99
------- ---- ------- ----
Other assets 175,077 218,936
--------- ---------
Total assets $4,297,757 $4,384,501
========= =========
Liabilities and equity
Interest-bearing
liabilities
Interest-bearing
checking accounts $ 556,610 $ 1,128 0.81% $ 561,216 $ 1,101 0.80%
Money market accounts 1,376,199 8,678 2.53 1,369,569 8,616 2.55
Savings accounts 170,067 28 0.07 170,227 28 0.07
Certificate accounts 712,224 5,744 3.23 830,675 7,105 3.47
--------- ------- ---- --------- ------- ----
Total
interest-bearing
deposits 2,815,100 15,578 2.22 2,931,687 16,850 2.33
Junior subordinated
debt 8,449 151 7.17 10,231 188 7.45
Borrowings 15,978 150 3.77 16,667 154 3.75
--------- ------- ---- --------- ------- ----
Total
interest-bearing
liabilities 2,839,527 15,879 2.24 2,958,585 17,192 2.36
------- ---- ------- ----
Noninterest-bearing
deposits 806,566 759,493
Other liabilities 50,949 67,106
--------- ---------
Total liabilities 3,697,042 3,785,184
Stockholders' equity 600,715 599,317
--------- ---------
Total liabilities and
stockholders'
equity $4,297,757 $4,384,501
========= =========
Net earning assets $1,283,153 $1,206,980
========= =========
Average
interest-earning
assets to average
interest-bearing
liabilities 145.19% 140.80%
Non-tax-equivalent
-------- --------
Net interest income $ 45,294 $ 44,305
======= =======
Interest rate spread 3.71% 3.63%
Net interest
margin(3) 4.41% 4.31%
Tax-equivalent(4)
-------- --------
Net interest income $ 45,752 $ 44,740
======= =======
Interest rate spread 3.76% 3.67%
Net interest
margin(3) 4.45% 4.36%
(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 $458 and $435 for the three months ended June 30, 2026 and March 31, 2026, respectively, calculated based on a combined federal and state tax rate of 23%.
Total interest and dividend income for the three months ended June 30, 2026 decreased $324,000, or 0.5%, when compared to the three months ended March 31, 2026. A decline of $605,000 in accretion income was the primary driver of this change, partially offset by the impact of an additional day in the current quarter.
Total interest expense for the three months ended June 30, 2026 decreased $1.3 million, or 7.6%, when compared to the three months ended March 31, 2026. A decline of $1.3 million, or 7.5%, in deposit interest expense drove this change, the result of a decline in both the average balance of and rate paid on certificate accounts, specifically brokered deposits.
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/
(Dollars in thousands) Volume Rate (Decrease)
---------------- --------- ---------------
Interest-earning assets
Loans receivable $ 281 $ (499) $ (218)
Debt securities
available for sale 109 (46) 63
Other interest-earning
assets (245) 76 (169)
-------- ------- --------
Total
interest-earning
assets 145 (469) (324)
-------- ------- --------
Interest-bearing
liabilities
Interest-bearing
checking accounts 3 24 27
Money market accounts 137 (75) 62
Savings accounts -- -- --
Certificate accounts (950) (411) (1,361)
Junior subordinated
debt (31) (6) (37)
Borrowings (5) 1 (4)
-------- ------- --------
Total
interest-bearing
liabilities (846) (467) (1,313)
-------- ------- --------
Increase in net
interest income $ 989
========
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
June 30, March 31,
(Dollars in thousands) 2026 2026 $ Change % Change
---------- --------- ---------- ----------
Provision for credit
losses
Loans $ 1,020 $ 945 $ 75 8%
Off-balance sheet
credit exposure (100) (575) 475 83
----- ---- --- ----- ----- ---
Total provision for
credit losses $ 920 $ 370 $ 550 149%
===== ==== === ===== =====
For the quarter ended June 30, 2026, the "loans" portion of the provision for credit losses was primarily the result of the following, offset by net charge-offs of $1.8 million during the quarter:
-- $0.2 million provision driven by changes in the loan mix.
-- $0.4 million benefit due to changes in the projected economic forecast,
specifically the national unemployment rate, and changes in qualitative
adjustments.
-- $0.6 million decrease in specific reserves on individually evaluated
loans.
For the quarter ended March 31, 2026, the "loans" portion of the provision for credit losses was primarily the result of the following, offset by net charge-offs of $1.8 million during the quarter:
-- $0.5 million benefit driven by changes in the loan mix.
-- $0.2 million provision due to changes in the projected economic forecast,
specifically the national unemployment rate, and changes in qualitative
adjustments.
-- $0.6 million decrease in specific reserves on individually evaluated
loans.
For the quarters ended June 30, 2026 and March 31, 2026, the amounts recorded for off-balance sheet credit exposure were the result of changes in the balance of loan commitments, loan mix, projected economic forecast and qualitative allocations as outlined above.
Noninterest Income. Noninterest income for the three months ended June 30, 2026 decreased $784,000, or 7.8%, when compared to the quarter ended March 31, 2026. Changes in the components of noninterest income are discussed below:
Three Months Ended
June 30, March 31,
(Dollars in thousands) 2026 2026 $ Change % Change
---------- ---------- ---------- ----------
Noninterest income
Service charges and
fees on deposit
accounts $ 2,627 $ 2,414 $ 213 9%
Loan income and fees 501 692 (191) (28)
Gain on sale of loans
held for sale 1,874 2,654 (780) (29)
Bank owned life
insurance ("BOLI")
income 893 892 1 --
Operating lease
income 1,407 1,892 (485) (26)
Gain on sale of
premises and
equipment 1,101 377 724 192
Other 844 1,110 (266) (24)
--- ----- ------ --- ---- -----
Total noninterest
income $ 9,247 $ 10,031 $ (784) (8)%
=== ===== ====== === ==== ==========
-- Loan income and fees: The decrease was primarily the result of $251,000
less in prepayment penalties, partially offset by a $68,000 increase in
other servicing fees.
-- Gain on sale of loans held for sale: The decrease was primarily driven by
a drop in the sales volume of HELOC loans originated for sale, partially
offset by an increase in the sales volume of residential mortgage loans.
There were $17.2 million of HELOCs originated for sale which were sold
during the current quarter with gains of $93,000 compared to $103.0
million sold with gains of $934,000 in the prior quarter. There were
$39.9 million of residential mortgage loans sold for gains of $481,000
during the current quarter compared to $23.3 million sold with gains of
$431,000 in the prior quarter. There were $15.3 million in sales of the
guaranteed portion of SBA commercial loans with gains of $1.3 million for
the current quarter compared to $16.4 million sold and gains of $1.2
million for the prior quarter. Lastly, our hedging of mandatory
commitments on the residential mortgage loan pipeline resulted in a net
gain of $4,000 for the current quarter compared to $68,000 for the prior
quarter.
-- Operating lease income: The decrease was the result of a $402,000
increase in losses upon contract termination in addition to a $83,000
decrease in contract earnings.
-- Gain on sale of premises and equipment: In both periods presented, gains
were recognized on the sale of excess real estate.
-- Other: The decrease was primarily driven by a $108,000 reduction in
investment services income quarter-over-quarter.
Noninterest Expense. Noninterest expense for the three months ended June 30, 2026 increased $1.0 million, or 3.0%, when compared to the three months ended March 31, 2026. Changes in the components of noninterest expense are discussed below:
Three Months Ended
June 30, March 31,
(Dollars in thousands) 2026 2026 $ Change % Change
---------- ---------- ---------- ----------
Noninterest expense
Salaries and employee
benefits $ 20,169 $ 19,877 $ 292 1%
Occupancy expense,
net 2,417 2,630 (213) (8)
Computer services 3,027 2,877 150 5
Operating lease
depreciation
expense 1,378 1,516 (138) (9)
Telecom, postage and
supplies 509 581 (72) (12)
Marketing and
advertising 584 417 167 40
Deposit insurance
premiums 481 484 (3) (1)
Core deposit
intangible
amortization 302 374 (72) (19)
Loss on redemption of
junior subordinated
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