0001538263FALSE00015382632024-10-242024-10-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 24, 2024

HOMETRUST BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
 
Maryland 001-35593 45-5055422
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
10 Woodfin Street, Asheville, North Carolina
 28801
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code: (828) 259-3939
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities Registered Pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareHTBIThe NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐



Item 2.02  Results of Operations and Financial Condition
On October 24, 2024, HomeTrust Bancshares, Inc., (the "Company") the holding company for HomeTrust Bank, issued a press release reporting financial results for the third quarter of the year ending December 31, 2024 and the declaration and approval of its quarterly cash dividend. A copy of the press release, including unaudited financial information released as a part thereof, is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
 
Item 9.01  Financial Statements and Exhibits
(d)           Exhibits
 
Press release dated October 24, 2024


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

HOMETRUST BANCSHARES, INC.
Date: October 24, 2024 By:/s/ Tony J. VunCannon
Tony J. VunCannon
Executive Vice President, Chief Financial Officer, Corporate Secretary and Treasurer

2

htbi_imagea09.jpg
HomeTrust Bancshares, Inc. Announces Financial Results for the Third Quarter of the Year Ending
December 31, 2024 and an Increase in the Quarterly Dividend

ASHEVILLE, N.C., October 24, 2024 – 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
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
1

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 sale140,2461,616 4.58 134,3341,495 4.48 
Other interest-earning assets(2)
144,9311,728 4.74 140,3761,758 5.04 
Total interest-earning assets4,184,63766,649 6.34 4,159,93265,414 6.32 
Other assets264,579266,983
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 accounts1,335,79810,757 3.20 1,298,17710,221 3.17 
Savings accounts182,61840 0.09 188,02841 0.09 
Certificate accounts1,012,76511,617 4.56 902,8649,976 4.44 
Total interest-bearing deposits3,079,20523,692 3.06 2,975,46521,683 2.93 
Junior subordinated debt10,079235 9.28 10,054234 9.36 
Borrowings40,399648 6.38 87,3151,331 6.13 
Total interest-bearing liabilities3,129,68324,575 3.12 3,072,83423,248 3.04 
Noninterest-bearing deposits719,710769,016
Other liabilities65,09763,503
Total liabilities3,914,4903,905,353
Stockholders' equity534,726521,562
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 liabilities133.71 %135.38 %
Non-tax-equivalent
Net interest income$42,074 $42,166 
Interest rate spread3.22 %3.28 %
Net interest margin(3)
4.00 %4.08 %
Tax-equivalent(4)
Net interest income$42,442 $42,520 
Interest rate spread3.25 %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.
2

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)VolumeRate
Interest-earning assets
Loans receivable$916 $228 $1,144 
Debt securities available for sale83 38 121 
Other interest-earning assets76 (106)(30)
Total interest-earning assets1,075 160 1,235 
Interest-bearing liabilities
Interest-bearing checking accounts(81)(86)(167)
Money market accounts413 123 536 
Savings accounts(1)— (1)
Certificate accounts1,341 300 1,641 
Junior subordinated debt3 (2)1 
Borrowings(708)25 (683)
Total interest-bearing liabilities967 360 1,327 
Decrease in net interest income$(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.

3

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 fees684 647 37 6 
Gain on sale of loans held for sale1,900 1,828 72 4 
Bank owned life insurance ("BOLI") income828 807 21 3 
Operating lease income1,637 1,591 46 3 
Other897 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, net2,436 2,419 17 1 
Computer services3,192 3,116 76 2 
Telephone, postage and supplies547 580 (33)(6)
Marketing and advertising408 606 (198)(33)
Deposit insurance premiums589 531 58 11 
Core deposit intangible amortization567 567 — — 
Other5,764 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.
4

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, 2024September 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 sale133,7794,424 4.42 155,8843,780 3.24 
Other interest-earning assets(2)
138,9565,576 5.36 137,0655,356 5.22 
Total interest-earning assets4,155,775195,418 6.28 3,977,467171,662 5.77 
Other assets276,516266,867
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 accounts1,305,21730,642 3.14 1,206,11918,604 2.06 
Savings accounts187,447124 0.09 218,683143 0.09 
Certificate accounts934,70230,778 4.40 649,75514,967 3.08 
Total interest-bearing deposits3,002,32065,693 2.92 2,701,75736,955 1.83 
Junior subordinated debt10,054705 9.37 8,428563 8.93 
Borrowings76,8233,550 6.17 158,9656,634 5.58 
Total interest-bearing liabilities3,089,19769,948 3.02 2,869,15044,152 2.06 
Noninterest-bearing deposits766,110857,315
Other liabilities55,21754,513
Total liabilities3,910,5243,780,978
Stockholders' equity521,767463,356
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 liabilities134.53 %138.63 %
Non-tax-equivalent
Net interest income$125,470 $127,510 
Interest rate spread3.26 %3.71 %
Net interest margin(3)
4.03 %4.29 %
Tax-equivalent
Net interest income$126,542 $128,413 
Interest rate spread3.30 %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.
5

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)VolumeRate
Interest-earning assets
Loans receivable$8,927 $13,965 $22,892 
Debt securities available for sale(532)1,176 644 
Other interest-earning assets79 141 220 
Total interest-earning assets8,474 15,282 23,756 
Interest-bearing liabilities
Interest-bearing checking accounts(266)1,174 908 
Money market accounts1,557 10,481 12,038 
Savings accounts(20)1 (19)
Certificate accounts6,592 9,219 15,811 
Junior subordinated debt109 33 142 
Borrowings(3,425)341 (3,084)
Total interest-bearing liabilities4,547 21,249 25,796 
Decrease in net interest income$(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.
6

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 fees2,009 1,913 96 5 
Gain on sale of loans held for sale5,185 4,213 972 23 
BOLI income3,470 2,844 626 22 
Operating lease income5,087 4,515 572 13 
Gain (loss) on sale of premises and equipment(9)982 (991)(101)
Other2,625 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, net7,292 7,556 (264)(3)
Computer services9,396 9,386 10 — 
Telephone, postage and supplies1,712 1,942 (230)(12)
Marketing and advertising1,659 1,555 104 7 
Deposit insurance premiums1,674 1,878 (204)(11)
Core deposit intangible amortization1,896 2,324 (428)(18)
Merger-related expenses— 4,741 (4,741)(100)
Other16,364 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.
7

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.
8

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 deposits274,497 275,808 364,359 328,833 306,924 
Cash and cash equivalents293,477 294,190 380,493 347,140 325,014 
Certificates of deposit in other banks29,290 32,131 33,625 34,722 35,380 
Debt securities available for sale, at fair value140,552 134,135 120,807 126,950 134,348 
FHLB and FRB stock18,384 19,637 13,691 18,393 19,612 
SBIC investments, at cost15,489 15,462 14,568 13,789 14,586 
Loans held for sale, at fair value2,968 1,614 2,764 3,359 4,616 
Loans held for sale, at the lower of cost or fair value189,722 224,976 220,699 198,433 200,834 
Total loans, net of deferred loan fees and costs3,698,892 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, net3,650,761 3,652,231 3,600,650 3,591,381 3,612,497 
Premises and equipment, net69,603 69,880 70,588 70,937 72,463 
Accrued interest receivable17,523 18,412 16,944 16,902 16,513 
Deferred income taxes, net10,100 10,512 11,222 11,796 9,569 
BOLI90,021 89,176 88,369 88,257 106,059 
Goodwill34,111 34,111 34,111 34,111 34,111 
Core deposit intangibles, net7,162 7,730 8,297 9,059 9,918 
Other assets68,130 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 debt10,096 10,070 10,045 10,021 9,995 
Borrowings260,013 364,513 291,513 433,763 452,263 
Other liabilities65,592 64,874 69,473 67,583 64,367 
Total liabilities4,097,289 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 capital175,495 172,907 172,919 172,366 171,663 
Retained earnings368,383 357,147 346,598 333,401 321,799 
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' equity540,004 523,628 513,173 499,893 484,411 
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.

9

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 sale1,616 1,495 4,424 3,780 
Other investments and interest-bearing deposits1,728 1,758 5,576 5,356 
Total interest and dividend income66,649 65,414 195,418 171,662 
Interest expense
Deposits23,692 21,683 65,693 36,955 
Junior subordinated debt235 234 705 563 
Borrowings648 1,331 3,550 6,634 
Total interest expense24,575 23,248 69,948 44,152 
Net interest income42,074 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 losses39,099 37,906 117,070 115,775 
Noninterest income  
Service charges and fees on deposit accounts2,336 2,354 6,839 6,967 
Loan income and fees684 647 2,009 1,913 
Gain on sale of loans held for sale1,900 1,828 5,185 4,213 
BOLI income828 807 3,470 2,844 
Operating lease income1,637 1,591 5,087 4,515 
Gain (loss) on sale of premises and equipment— — (9)982 
Other897 886 2,625 2,391 
Total noninterest income8,282 8,113 25,206 23,825 
Noninterest expense  
Salaries and employee benefits17,082 16,608 50,666 49,436 
Occupancy expense, net2,436 2,419 7,292 7,556 
Computer services3,192 3,116 9,396 9,386 
Telephone, postage and supplies547 580 1,712 1,942 
Marketing and advertising408 606 1,659 1,555 
Deposit insurance premiums589 531 1,674 1,878 
Core deposit intangible amortization567 567 1,896 2,324 
Merger-related expenses— — — 4,741 
Other5,764 5,783 16,364 14,490 
Total noninterest expense30,585 30,210 90,659 93,308 
Income before income taxes16,796 15,809 51,617 46,292 
Income tax expense3,684 3,391 11,020 9,712 
Net income$13,112 $12,418 $40,597 $36,580 
10

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
Basic16,931,793 16,883,028 16,891,619 16,532,335 
Diluted17,027,824 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 period17,514,922 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, 2023September 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.
11

Loans
(Dollars in thousands)
September 30, 2024June 30,
2024		March 31, 2024December 31, 2023September 30, 2023
Commercial real estate loans
Construction and land development$300,905 $316,050 $304,727 $305,269 $352,143 
Commercial real estate – owner occupied544,689 545,631 532,547 536,545 526,534 
Commercial real estate – non-owner occupied881,340 892,653 881,143 875,694 880,348 
Multifamily114,155 92,292 89,692 88,623 83,430 
Total commercial real estate loans1,841,089 1,846,626 1,808,109 1,806,131 1,842,455 
Commercial loans
Commercial and industrial286,809 266,136 243,732 237,255 237,366 
Equipment finance443,033 461,010 462,649 465,573 470,387 
Municipal leases158,560 152,509 151,894 150,292 147,821 
Total commercial loans888,402 879,655 858,275 853,120 855,574 
Residential real estate loans
Construction and land development63,016 70,679 85,840 96,646 103,381 
One-to-four family627,845 621,196 605,570 584,405 560,399 
HELOCs194,909 188,465 184,274 185,878 185,289 
Total residential real estate loans885,770 880,340 875,684 866,929 849,069 
Consumer loans83,631 94,833 106,084 113,842 112,816 
Total loans, net of deferred loan fees and costs3,698,892 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, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Core deposits
Noninterest-bearing accounts$684,501 $683,346 $773,901 $784,950 $827,362 
NOW accounts534,517 561,789 600,561 591,270 602,804 
Money market accounts1,345,289 1,311,940 1,308,467 1,246,807 1,195,482 
Savings accounts179,762 185,499 191,302 194,486 202,971 
Total core deposits2,744,069 2,742,574 2,874,231 2,817,513 2,828,619 
Certificates of deposit1,017,519 965,205 925,576 843,860 812,342 
Total$3,761,588 $3,707,779 $3,799,807 $3,661,373 $3,640,961 

12

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 EndedNine Months Ended
(Dollars in thousands)September 30, 2024June 30, 2024September 30, 2024September 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 adjustment368 354 1,072 903 
Plus: noninterest income8,282 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 ratio60.74 %60.08 %60.17 %61.66 %
Efficiency ratio – adjusted60.30 %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, 2024June 30,
2024		March 31, 2024December 31, 2023September 30, 2023
Total stockholders' equity$540,004 $523,628 $513,173 $499,893 $484,411 
Less: goodwill, core deposit intangibles, net of taxes39,626 40,063 40,500 41,086 41,748 
Tangible book value$500,378 $483,565 $472,673 $458,807 $442,663 
Common shares outstanding17,514,922 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, 2024June 30,
2024		March 31, 2024December 31, 2023September 30, 2023
Tangible equity(1)
$500,378 $483,565 $472,673 $458,807 $442,663 
Total assets4,637,293 4,670,864 4,684,011 4,672,633 4,651,997 
Less: goodwill, core deposit intangibles, net of taxes39,626 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 assets10.88 %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.
13
v3.24.3
Document and Entity Information
Oct. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 24, 2024
Entity Registrant Name HOMETRUST BANCSHARES, INC.
Entity Incorporation, State or Country Code MD
Entity File Number 001-35593
Entity Tax Identification Number 45-5055422
Entity Address, Address Line One 10 Woodfin Street
Entity Address, City or Town Asheville
Entity Address, State or Province NC
Entity Address, Postal Zip Code 28801
City Area Code (828)
Local Phone Number 259-3939
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol HTBI
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001538263
Amendment Flag false
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