2 months ago
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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.
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"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) |
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