HomeTrust Bancshares, Inc. (NASDAQ: HTBI) ("Company"), the holding
company of HomeTrust Bank ("Bank"), today announced preliminary net
income for the second quarter of fiscal 2022 and approval of its
quarterly dividend.
For the quarter ended December 31, 2021 compared
to the corresponding quarter in the previous year:
- net income was
$11.1 million, compared to $9.5 million;
- diluted earnings
per share ("EPS") was $0.68, compared to $0.57;
- annualized
return on assets ("ROA") was 1.24%, compared to 1.03%;
- annualized
return on equity ("ROE") was 11.02%, compared to 9.41%;
- provision for
credit losses was a net benefit of $2.5 million, compared to a net
benefit of $3.0 million;
- noninterest
income was $10.2 million compared to $9.3 million;
- 299,397 shares
of Company common stock were repurchased during the quarter at an
average price of $29.96 per share;
- net commercial
loan growth, excluding U.S. Small Business Administration's ("SBA")
Paycheck Protection Program ("PPP") loans, was $41.9 million, or
8.6% annualized compared to a decline of $44.6 million, or 9.8%
annualized, in the prior year; and
- quarterly cash
dividends increased $0.01 per share, or 12.5%, to $0.09 per share,
totaling $1.4 million.
For the six months ended December 31, 2021
compared to the previous year:
- net income was $21.6 million,
compared to $15.2 million;
- diluted earnings per share ("EPS")
was $1.33, compared to $0.92;
- annualized return on assets ("ROA")
was 1.21%, compared to 0.83%;
- annualized return on equity ("ROE")
was 10.78%, compared to 7.58%;
- provision for credit losses was a
net benefit of $4.0 million, compared to a net benefit of $2.1
million;
- noninterest income was $20.5 million
compared to $18.0 million;
- 675,832 shares of Company common
stock were repurchased during the six months at an average price of
$28.71 per share; and
- net commercial
loan growth, excluding PPP loans, was $78.9 million, or 8.2%
annualized compared to a decline of $11.0 million, or 1.2%
annualized in the prior year.
The Company also announced today that its Board
of Directors declared a quarterly cash dividend of $0.09 per common
share payable on March 3, 2022 to shareholders of record as of the
close of business on February 17, 2022.
“We continue to be encouraged by the positive
trends within our commercial loan portfolio, both in terms of the
volume of originations and the performance of the portfolio,” said
Dana Stonestreet, Chairman and Chief Executive Officer. “Our
commercial portfolio continues to grow at an annual rate in the
mid- to high-single digits which we've maintained for several
years. While the main driver of this growth has been our equipment
finance portfolio, all commercial lines of business have
experienced growth over the past year. In addition, the levels of
nonperforming and classified credits remain at historically low
levels. As a reflection of both the strong credit quality of our
loan portfolio and a continued improvement in forecasted economic
conditions, we were again able to release reserves this quarter
recording a $2.5 million benefit for credit losses. Going forward
we will continue to focus on the asset origination capacity of all
of our lines of business, while maintaining the credit culture that
has supported our growth in recent years.”
Comparison of Results of Operations for
the Three Months Ended December 31, 2021 and 2020
Net interest income increased by $1.1 million,
or 4.0%, to $27.2 million for the quarter ended December 31, 2021,
compared to $26.1 million for the comparative quarter in fiscal
2021. Interest and dividend income decreased by $1.7 million, or
5.5%, primarily driven by lower average balances on
interest-earning assets combined with lower loan yields. This
decrease was offset by a $2.7 million, or 67.3% decrease in
interest expense. Average interest-earning assets decreased $139.2
million, or 4.1%, to $3.3 billion for the quarter ended December
31, 2021. The main drivers of the change were decreases of $103.5
million, or 24.8%, in the average balance of commercial paper and
deposits in other banks and $11.9 million, or 8.9%, in debt
securities available for sale as the Company continues to use
excess liquidity to reduce borrowings, which declined by $417.8
million, or 88.0%, when compared to the prior period. Net interest
margin (on a fully taxable-equivalent basis) for the three months
ended December 31, 2021 increased to 3.33% from 3.07% for the same
period a year ago as all higher rate long-term borrowings were
repaid during the quarter ended June 30, 2021.
Total interest and dividend income decreased
$1.7 million, or 5.5%, for the quarter ended December 31, 2021 as
compared to the same quarter last year, which was primarily a
result of a $1.4 million, or 5.0%, decrease in loan interest
income, and a $146,000, or 23.8%, decrease in interest income from
commercial paper and deposits in other banks. The lower interest
income in each category was mainly driven by the overall decrease
in average balances as discussed above, in addition to declines in
the average yields on loans of 19 basis points, from 4.02% to
3.83%, and debt securities available for sale of 16 basis points,
from 1.50% to 1.34%. Loan interest income for the quarter included
the amortization of $286,000 of PPP loan origination fees, a
decline of $202,000 when compared to the $488,000 recognized in the
prior period. The overall average yield on interest-earning assets
decreased 5 basis points to 3.49% for the current quarter compared
to 3.54% in the same quarter last year primarily due to the change
in mix of interest-earning assets, as excess liquidity was used to
repay long-term borrowings and reduce short-term interest-earning
assets with lower yields.
Total interest expense decreased $2.7 million,
or 67.3%, for the quarter ended December 31, 2021 compared to the
same period last year. The decrease was driven by a $1.7 million,
or 99.1%, decrease in interest expense on borrowings as discussed
above and a $1.0 million, or 44.4%, decrease in interest expense on
deposits. The average balance of total deposits increased by $296.8
million, or 10.8%, with noninterest-bearing deposits and
interest-bearing deposits increasing $212.8 million and $84.0
million, respectively. The increase in interest-bearing deposits
was driven by a $149.5 million, or 17.6% increase in money market
accounts, partially offset by a $132.5 million, or 23.0%, decrease
in certificates of deposit. As stated above, average borrowings for
the quarter ended December 31, 2021 decreased $417.8 million, or
88.0%, along with a 130 basis point decrease in the average cost of
borrowings compared to the same period last year. The increase in
average deposits (interest and noninterest-bearing) was due to
successful deposit gathering campaigns and the effect of government
stimulus. The decrease in the average cost of borrowings was
primarily driven by the early retirement of long-term borrowings
reducing the average balance and partially driven by a shift to
short-term borrowings at lower rates. The overall average cost of
funds decreased 37 basis points to 0.22% for the current quarter
compared to 0.59% in the same quarter last year.
Noninterest income increased $0.9 million, or
8.9%, to $10.2 million for the quarter ended December 31, 2021 from
$9.3 million for the same period in the previous year. This change
was primarily due to a $369,000, or 27.3%, increase in operating
lease income, a $236,000, or 41.5%, increase in loan income and
fees, and a $197,000, or 5.3%, increase in gain on sale of loans.
The increase in operating lease income was driven by increases in
loan originations and higher outstanding lease balances during the
period. The increase in loan income and fees was largely a result
of transitioning SBA loan servicing processes in-house, which began
July 1, 2021. During the quarter ended December 31, 2021, $86.9
million of residential mortgage loans originated for sale were sold
with gains of $2.2 million compared to $108.9 million sold and
gains of $2.8 million in the corresponding period in the prior
year. There were $12.6 million of sales of the guaranteed portion
of SBA commercial loans with gains of $1.3 million in the current
quarter compared to $9.3 million sold and gains of $778,000 million
for the same period last year. The Company sold $24.8 million of
home equity lines of credit (HELOC) during the quarter for a gain
of $159,000 compared to $23.2 million sold and gains of $158,000 in
the corresponding period last year. Lastly, $11.5 million of
indirect auto finance loans were sold in the current quarter out of
the held for investment portfolio for a gain of $205,000. No such
sales occurred in the same period in the prior year.
Noninterest expense decreased $534,000, or 2.0%,
for the quarter ended December 31, 2021 as compared to the same
period last year, which was primarily a result of a decrease of
$828,000, or 5.3%, in salaries and benefits expense due to branch
closures and lower mortgage banking incentive pay in the period
partially offset by an increase of $505,000, or 154.4%, in
marketing and advertising expense driven by reduced media
advertising in the prior period as a result of the pandemic.
For the quarter ended December 31, 2021, the
Company's income tax expense increased $269,000, or 10.4%, to $2.9
million from $2.6 million as a result of higher taxable income. The
effective tax rates for the quarters ended December 31, 2021 and
2020 were 20.5% and 21.5%, respectively.
Comparison of Results of Operations for
the Six Months Ended December 31, 2021 and 2020
Net interest income increased by $3.2 million,
or 6.3%, to $54.9 million for the six months ended December 31,
2021, compared to the same period last year. Interest and dividend
income decreased by $2.8 million, or 4.6%, primarily driven by
lower average balances on interest-earning assets combined with
lower loan yields. This decrease was offset by a $6.1 million, or
67.5%, decrease in interest expense. Average interest-earning
assets decreased $163.4 million, or 4.8%, to $3.3 billion for the
six months ended December 31, 2021. The biggest reason for the
change was a decrease of $125.0 million, or 29.7%, in commercial
paper and deposits in other banks, as the Company used excess
liquidity to reduce borrowings, where the average balance declined
from $475.0 million to $56.4 million. Net interest margin (on a
fully taxable-equivalent basis) for the six months ended December
31, 2021 increased to 3.37% from 3.02% for the same period a year
ago as all higher rate long-term borrowings were repaid during the
quarter ended June 30, 2021.
Total interest and dividend income decreased
$2.8 million, or 4.6%, for the six months ended December 31, 2021
as compared to the same period last year, which was primarily a
result of a $2.1 million, or 3.7%, decrease in loan interest income
and a $696,000, or 46.6%, decrease in interest income from
commercial paper and deposits in other banks. The lower interest
income in each category was mainly driven by the decrease in
average balances as discussed above. In addition, average loan
yields decreased 10 basis points to 3.90% for the quarter ended
December 31, 2021 from 4.00% in the corresponding quarter last
year, average yields on debt securities available for sale
decreased 28 basis points to 1.43% from 1.71%, and average yields
on commercial paper and deposits in other banks decreased 16 basis
points to 0.54% from 0.70%. Loan interest income for the six months
included the amortization of $710,000 of PPP loan origination fees,
a decline of $32,000 when compared to the $742,000 recognized in
the prior period. The overall average yield on interest-earning
assets increased one basis point to 3.55% for the six months
compared to 3.54% in the same period last year primarily due to the
use of excess liquidity to repay long-term borrowings.
Total interest expense decreased $6.1 million,
or 67.5%, for the six months ended December 31, 2021 compared to
the same period last year. The decrease was driven by a $3.3
million, or 98.8%, decrease in interest expense on borrowings as
discussed above and a $2.7 million, or 48.6%, decrease in interest
expense on deposits. The average balance of total deposits
increased by $272.2 million, or 9.9%, with noninterest-bearing
deposits and interest-bearing deposits increasing $215.4 million
and $56.8 million, respectively. The increase in interest-bearing
deposits was driven by a $62.9 million, or 11.0%, increase in
interest-bearing checking accounts and $156.5 million, or 18.7%,
increase in money market accounts, partially offset by a $182.2
million, or 28.8%, decrease in certificates of deposit. As stated
above average borrowings for the six months ended December 31, 2021
decreased $418.6 million, or 88.1%, along with a 126 basis point
decrease in the average cost of borrowings compared to the same
period last year. The increase in average deposits (interest and
noninterest-bearing) was due to successful deposit gathering
campaigns and the effect of government stimulus. The decrease in
the average cost of borrowings was primarily driven by the early
retirement of long-term borrowings reducing the average balance and
partially driven by a shift to short-term borrowings at lower
rates. The overall average cost of funds decreased 40 basis points
to 0.25% for the six months compared to 0.65% in the same period
last year.
Noninterest income increased $2.5 million, or
14.2%, to $20.5 million for the six months ended December 31, 2021
from $18.0 million for the same period in the previous year. This
change was due to a $910,000, or 12.9%, increase in the gain on
sale of loans, a $741,000, or 71.0%, increase in loan income and
fees, a $583,000, or 21.8%, increase in operating lease income, and
a $372,000, or 8.2%, increase in service charges and fees on
deposit accounts. During the six months ended December 31, 2021,
$150.7 million of residential mortgage loans originated for sale
were sold with gains of $4.3 million compared to $190.7 million
sold and gains of $5.0 million in the corresponding period in the
prior year. There were $27.0 million of sales of the guaranteed
portion of SBA commercial loans with gains of $3.1 million in the
six months compared to $24.5 million sold and gains of $1.8 million
for the same period last year. The Company sold $72.2 million of
HELOCs during the six months ended December 31, 2021 for a gain of
$426,000 compared to $42.1 million sold and gains of $258,000 in
the corresponding period last year. Lastly, $11.5 million of
indirect auto finance loans were sold out of the held for
investment portfolio during the current period for a gain of
$205,000. No such sales occurred in the same period in the prior
year. The $741,000, or 71.0%, increase in loan income and fees was
primarily a result of $536,000 in additional loan servicing fees as
a result of bringing the Company's SBA loan servicing process
in-house, which began July 1, 2021, and $279,000 in additional
prepayment fee income from our equipment finance line of business.
The increase in operating lease income was primarily driven by
increases in loan originations and higher outstanding lease
balances during the period. Lastly, the increase in service charges
on deposit accounts was the result of a $290,000 increase in
interchange income driven by higher debit card usage.
Noninterest expense decreased $518,000, or 1.0%,
for the six months ended December 31, 2021 as compared to the same
period last year, which was primarily a result of a decrease of
$755,000, or 2.4%, in salaries and benefits expense due to branch
closures and lower mortgage banking incentive pay in the period and
a reduction of core deposit amortization expense of $282,000, or
64.1%, partially offset by an increase of $885,000, or 135.7%, in
marketing and advertising expense driven by reduced media
advertising in the prior period as a result of the pandemic.
For the six months ended December 31, 2021, the
Company's income tax expense increased $1.8 million, or 44.6%, to
$5.8 million from $4.0 million as a result of higher taxable
income. The effective tax rates for the six months ended December
31, 2021 and 2020 were 21.3% and 21.0%, respectively.
Balance Sheet Review
Total assets and liabilities decreased by $21.9
million and $27.1 million to $3.5 billion and $3.1 billion,
respectively, at December 31, 2021 as compared to June 30, 2021.
The decrease in assets was primarily driven by a combined decrease
of $56.9 million, or 23.0%, in cash and cash equivalents,
certificates of deposit in other banks, and debt securities
available for sale, and a $37.2 million, or 1.4%, decrease in loans
receivable as the Company redirected its excess liquidity to
continue paying down borrowings during the period. These decreases
were partially offset by a $64.6 million, or 34.1%, increase in
commercial paper and a $8.5 million, or 9.1%, increase in loans
held for sale.
Total loans decreased $37.2 million, or 1.4%, to
$2.7 billion at December 31, 2021 from the balance at June 30,
2021. The decrease was driven by PPP forgiveness of $27.6 million
and an $88.5 million, or 11.6%, decrease in retail consumer loans
primarily resulting from a reduction in one-to-four family loans
and indirect auto finance loans, partially as a result of the sale
of $11.5 million of these loans in November 2021. This decrease was
partially offset by a $78.9 million, or 4.1%, increase in
commercial loans (excluding PPP loans) as the Company continues its
focus on the growth of this loan segment.
Stockholders' equity increased $5.2 million, or
1.3%, to $401.7 million at December 31, 2021 as compared to June
30, 2021. Activity within stockholders' equity included $21.6
million in net income, $4.8 million in stock-based compensation
expense, stock repurchases of $19.4 million, and $2.7 million in
cash dividends declared. As of December 31, 2021, the Bank was
considered "well capitalized" in accordance with its regulatory
capital guidelines and exceeded all regulatory capital
requirements.
Asset Quality
The allowance for credit losses on loans was
$30.9 million, or 1.15%, of total loans at December 31, 2021
compared to $35.5 million, or 1.30%, of total loans at June 30,
2021. The overall decrease was driven by lower expected credit
losses estimated by management based on an improving economic
outlook.
The provision for credit losses was a net
benefit of $4.0 million for the six months ended December 31, 2021,
compared to a net benefit of $2.1 million for the corresponding
period in fiscal year 2021. Net loan charge-offs totaled $760,000
for the six months ended December 31, 2021, compared to $637,000
for the same period last year. Net charge-offs as a percentage of
average loans were 0.05% for the six months ended December 31, 2021
compared to 0.04% for the corresponding period last year.
Nonperforming assets decreased by $6.6 million,
or 51.4%, to $6.2 million, or 0.18%, of total assets at December
31, 2021 compared to $12.8 million, or 0.36% of total assets at
June 30, 2021. The significant decrease from June 30, 2021 was
primarily a result of the payoff of two commercial real estate loan
relationships totaling $5.1 million in the prior quarter.
Nonperforming assets included $6.2 million in nonaccruing loans and
$45,000 in REO at December 31, 2021, compared to $12.6 million and
$188,000 in nonaccruing loans and REO, respectively, at June 30,
2021. Nonperforming loans to total loans was 0.23% at December 31,
2021 and 0.46% at June 30, 2021.
As of December 31, 2021, the Company had
$652,000 in loans with full principal and interest payment
deferrals related to COVID-19 compared to $107,000 at June 30,
2021. Substantially all loans placed on full payment deferral
during the pandemic have come out of deferral and borrowers are
either making regular loan payments or interest-only payments. As
of December 31, 2021, the Company had $15.6 million in commercial
loan deferrals on interest-only payments compared to $78.9 million
at June 30, 2021.
The ratio of classified assets to total assets
decreased to 0.65% at December 31, 2021 from 0.76% at June 30,
2021. Classified assets decreased $3.8 million, or 14.2%, to $22.9
million at December 31, 2021 compared to $26.7 million at June 30,
2021 primarily due to the payoff of two commercial real estate loan
relationships discussed above. The Company's overall asset quality
metrics continue to demonstrate its commitment to growing and
maintaining a loan portfolio with a moderate risk profile; however,
the Company will remain diligent in its monitoring of the portfolio
during these uncertain times.
About HomeTrust Bancshares,
Inc.
HomeTrust Bancshares, Inc. is the holding
company for the Bank. As of December 31, 2021, the Company had
assets of $3.5 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 (including the Asheville metropolitan area, the
"Piedmont" region, Charlotte, and Raleigh/Cary), Upstate South
Carolina (Greenville), East Tennessee (including Kingsport/Johnson
City, Knoxville, and Morristown) and Southwest Virginia (including
the Roanoke Valley).
Forward-Looking Statements
This press release includes "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements often include words such as
"believe," "expect," "anticipate," "estimate," and "intend" or
future or conditional verbs such as "will," "would," "should,"
"could," or "may." Forward-looking statements are not historical
facts but instead represent management's current expectations and
forecasts regarding future events, many of which are inherently
uncertain and outside of the Company's control. Actual results may
differ, possibly materially, from those currently expected or
projected in these forward-looking statements. Factors that could
cause the Company's actual results to differ materially from those
described in the forward-looking statements include: the effect of
the COVID-19 pandemic, including on the Company's credit quality
and business operations, as well as its impact on general economic
and financial market conditions and other uncertainties resulting
from the COVID-19 pandemic, such as the extent and duration of the
impact on public health, the U.S. and global economies, and
consumer and corporate customers, including economic activity,
employment levels and market liquidity; increased competitive
pressures; changes in the interest rate environment; changes in
general economic conditions and conditions within the securities
markets; legislative and regulatory changes; and other factors
described in HomeTrust'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 their website at www.htb.com and on the SEC's
website at www.sec.gov. These risks could cause the Company's
actual results for fiscal 2022 and beyond to differ materially from
those expressed in any forward-looking statements by, or on behalf
of, the Company and could negatively affect its operating and stock
performance. Any of the forward-looking statements that the Company
makes in this press release or the documents they file with or
furnish 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 they might make, because of the
factors described above or because of other factors that they
cannot foresee. The Company does not undertake and specifically
disclaim 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.
WEBSITE: WWW.HTB.COM
Consolidated Balance Sheets (Unaudited)
| (Dollars in thousands) |
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021(1) |
|
March 31, 2021 |
|
December 31, 2020 |
| Assets |
|
|
|
|
|
|
|
|
|
|
Cash |
$ |
20,586 |
|
|
$ |
22,431 |
|
|
$ |
22,312 |
|
|
$ |
24,621 |
|
|
$ |
27,365 |
|
|
Interest-bearing deposits |
|
14,240 |
|
|
|
20,142 |
|
|
|
28,678 |
|
|
|
139,474 |
|
|
|
198,979 |
|
|
Cash and cash equivalents |
|
34,826 |
|
|
|
42,573 |
|
|
|
50,990 |
|
|
|
164,095 |
|
|
|
226,344 |
|
|
Commercial paper |
|
254,157 |
|
|
|
196,652 |
|
|
|
189,596 |
|
|
|
238,445 |
|
|
|
183,778 |
|
|
Certificates of deposit in other banks |
|
34,002 |
|
|
|
35,495 |
|
|
|
40,122 |
|
|
|
42,015 |
|
|
|
48,637 |
|
|
Debt securities available for sale, at fair value |
|
121,851 |
|
|
|
124,576 |
|
|
|
156,459 |
|
|
|
162,417 |
|
|
|
153,540 |
|
|
Other investments, at cost |
|
22,117 |
|
|
|
20,891 |
|
|
|
23,710 |
|
|
|
28,899 |
|
|
|
39,572 |
|
|
Loans held for sale |
|
102,070 |
|
|
|
105,161 |
|
|
|
93,539 |
|
|
|
86,708 |
|
|
|
118,439 |
|
|
Total loans, net of deferred loan fees and costs |
|
2,696,072 |
|
|
|
2,719,642 |
|
|
|
2,733,267 |
|
|
|
2,690,153 |
|
|
|
2,678,624 |
|
|
Allowance for credit losses - loans |
|
(30,933 |
) |
|
|
(34,406 |
) |
|
|
(35,468 |
) |
|
|
(36,059 |
) |
|
|
(39,844 |
) |
|
Loans, net |
|
2,665,139 |
|
|
|
2,685,236 |
|
|
|
2,697,799 |
|
|
|
2,654,094 |
|
|
|
2,638,780 |
|
|
Premises and equipment, net |
|
69,461 |
|
|
|
68,568 |
|
|
|
70,909 |
|
|
|
70,886 |
|
|
|
70,104 |
|
|
Accrued interest receivable |
|
8,200 |
|
|
|
8,429 |
|
|
|
7,933 |
|
|
|
8,271 |
|
|
|
9,796 |
|
|
Real estate owned ("REO") |
|
45 |
|
|
|
45 |
|
|
|
188 |
|
|
|
143 |
|
|
|
252 |
|
|
Deferred income taxes, net |
|
12,019 |
|
|
|
15,722 |
|
|
|
16,901 |
|
|
|
16,889 |
|
|
|
18,626 |
|
|
Bank owned life insurance ("BOLI") |
|
94,209 |
|
|
|
93,679 |
|
|
|
93,108 |
|
|
|
93,877 |
|
|
|
93,326 |
|
|
Goodwill |
|
25,638 |
|
|
|
25,638 |
|
|
|
25,638 |
|
|
|
25,638 |
|
|
|
25,638 |
|
|
Core deposit intangibles, net |
|
185 |
|
|
|
250 |
|
|
|
343 |
|
|
|
473 |
|
|
|
638 |
|
|
Other assets |
|
58,900 |
|
|
|
58,445 |
|
|
|
57,488 |
|
|
|
55,763 |
|
|
|
52,501 |
|
|
Total assets |
$ |
3,502,819 |
|
|
$ |
3,481,360 |
|
|
$ |
3,524,723 |
|
|
$ |
3,648,613 |
|
|
$ |
3,679,971 |
|
| Liabilities and
stockholders' equity |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
2,998,691 |
|
|
$ |
2,987,284 |
|
|
$ |
2,955,541 |
|
|
$ |
2,908,478 |
|
|
$ |
2,743,269 |
|
|
Borrowings |
|
48,000 |
|
|
|
40,000 |
|
|
|
115,000 |
|
|
|
275,000 |
|
|
|
475,000 |
|
|
Other liabilities |
|
54,382 |
|
|
|
57,565 |
|
|
|
57,663 |
|
|
|
58,683 |
|
|
|
56,978 |
|
|
Total liabilities |
|
3,101,073 |
|
|
|
3,084,849 |
|
|
|
3,128,204 |
|
|
|
3,242,161 |
|
|
|
3,275,247 |
|
| 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) |
|
163 |
|
|
|
163 |
|
|
|
167 |
|
|
|
167 |
|
|
|
168 |
|
|
Additional paid in capital |
|
147,552 |
|
|
|
151,425 |
|
|
|
160,582 |
|
|
|
162,010 |
|
|
|
166,352 |
|
|
Retained earnings |
|
258,986 |
|
|
|
249,331 |
|
|
|
240,075 |
|
|
|
248,767 |
|
|
|
242,182 |
|
|
Unearned Employee Stock Ownership Plan ("ESOP") shares |
|
(5,555 |
) |
|
|
(5,687 |
) |
|
|
(5,819 |
) |
|
|
(5,951 |
) |
|
|
(6,083 |
) |
|
Accumulated other comprehensive income |
|
600 |
|
|
|
1,279 |
|
|
|
1,514 |
|
|
|
1,459 |
|
|
|
2,105 |
|
|
Total stockholders' equity |
|
401,746 |
|
|
|
396,511 |
|
|
|
396,519 |
|
|
|
406,452 |
|
|
|
404,724 |
|
|
Total liabilities and stockholders' equity |
$ |
3,502,819 |
|
|
$ |
3,481,360 |
|
|
$ |
3,524,723 |
|
|
$ |
3,648,613 |
|
|
$ |
3,679,971 |
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Derived from audited financial statements. |
| (2) |
Shares of common stock issued and outstanding were
16,303,461 at December 31, 2021; 16,307,658 at September 30, 2021;
16,636,483 at June 30, 2021; 16,655,347 at March 31, 2021; and
16,791,027 at December 31, 2020. |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income
(Unaudited)
| |
Three Months Ended |
|
Six Months Ended |
| (Dollars in thousands) |
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
| Interest and dividend
income |
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
26,929 |
|
|
$ |
27,895 |
|
|
$ |
28,343 |
|
|
$ |
54,824 |
|
|
$ |
56,935 |
|
|
Commercial paper and interest-bearing deposits |
|
468 |
|
|
|
331 |
|
|
|
614 |
|
|
$ |
799 |
|
|
|
1,495 |
|
|
Debt securities available for sale |
|
411 |
|
|
|
524 |
|
|
|
504 |
|
|
|
935 |
|
|
|
1,032 |
|
|
Other investments |
|
680 |
|
|
|
555 |
|
|
|
696 |
|
|
|
1,235 |
|
|
|
1,144 |
|
|
Total interest and dividend income |
|
28,488 |
|
|
|
29,305 |
|
|
|
30,157 |
|
|
|
57,793 |
|
|
|
60,606 |
|
| Interest
expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
1,305 |
|
|
|
1,572 |
|
|
|
2,347 |
|
|
|
2,877 |
|
|
|
5,600 |
|
|
Borrowings |
|
15 |
|
|
|
26 |
|
|
|
1,688 |
|
|
|
41 |
|
|
|
3,375 |
|
|
Total interest expense |
|
1,320 |
|
|
|
1,598 |
|
|
|
4,035 |
|
|
|
2,918 |
|
|
|
8,975 |
|
| Net interest
income |
|
27,168 |
|
|
|
27,707 |
|
|
|
26,122 |
|
|
|
54,875 |
|
|
|
51,631 |
|
| Provision (benefit)
for credit losses |
|
(2,500 |
) |
|
|
(1,460 |
) |
|
|
(3,030 |
) |
|
|
(3,960 |
) |
|
|
(2,080 |
) |
| Net interest income
after provision (benefit) for credit losses |
|
29,668 |
|
|
|
29,167 |
|
|
|
29,152 |
|
|
|
58,835 |
|
|
|
53,711 |
|
| Noninterest
income |
|
|
|
|
|
|
|
|
|
|
Service charges and fees on deposit accounts |
|
2,513 |
|
|
|
2,372 |
|
|
|
2,416 |
|
|
|
4,885 |
|
|
|
4,513 |
|
|
Loan income and fees |
|
805 |
|
|
|
979 |
|
|
|
569 |
|
|
|
1,784 |
|
|
|
1,043 |
|
|
Gain on sale of loans held for sale |
|
3,901 |
|
|
|
4,057 |
|
|
|
3,704 |
|
|
|
7,958 |
|
|
|
7,048 |
|
|
BOLI income |
|
490 |
|
|
|
518 |
|
|
|
511 |
|
|
|
1,008 |
|
|
|
1,043 |
|
|
Operating lease income |
|
1,718 |
|
|
|
1,540 |
|
|
|
1,349 |
|
|
|
3,258 |
|
|
|
2,675 |
|
|
Other |
|
753 |
|
|
|
886 |
|
|
|
795 |
|
|
|
1,639 |
|
|
|
1,661 |
|
|
Total noninterest income |
|
10,180 |
|
|
|
10,352 |
|
|
|
9,344 |
|
|
|
20,532 |
|
|
|
17,983 |
|
| Noninterest
expense |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
14,872 |
|
|
|
15,280 |
|
|
|
15,700 |
|
|
|
30,152 |
|
|
|
30,907 |
|
|
Occupancy expense, net |
|
2,401 |
|
|
|
2,317 |
|
|
|
2,261 |
|
|
|
4,718 |
|
|
|
4,554 |
|
|
Computer services |
|
2,369 |
|
|
|
2,324 |
|
|
|
2,220 |
|
|
|
4,693 |
|
|
|
4,527 |
|
|
Telephone, postage, and supplies |
|
735 |
|
|
|
712 |
|
|
|
871 |
|
|
|
1,447 |
|
|
|
1,533 |
|
|
Marketing and advertising |
|
832 |
|
|
|
705 |
|
|
|
327 |
|
|
|
1,537 |
|
|
|
652 |
|
|
Deposit insurance premiums |
|
302 |
|
|
|
566 |
|
|
|
487 |
|
|
|
868 |
|
|
|
998 |
|
|
Gain on sale of REO |
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
(35 |
) |
|
REO related expense |
|
116 |
|
|
|
145 |
|
|
|
165 |
|
|
|
261 |
|
|
|
413 |
|
|
Core deposit intangible amortization |
|
65 |
|
|
|
93 |
|
|
|
202 |
|
|
|
158 |
|
|
|
440 |
|
|
Other |
|
4,217 |
|
|
|
3,877 |
|
|
|
4,210 |
|
|
|
8,094 |
|
|
|
8,454 |
|
|
Total noninterest expense |
|
25,909 |
|
|
|
26,016 |
|
|
|
26,443 |
|
|
|
51,925 |
|
|
|
52,443 |
|
| Net income before
income taxes |
|
13,939 |
|
|
|
13,503 |
|
|
|
12,053 |
|
|
|
27,442 |
|
|
|
19,251 |
|
| Income tax
expense |
|
2,861 |
|
|
|
2,976 |
|
|
|
2,592 |
|
|
|
5,837 |
|
|
|
4,037 |
|
| Net
income |
$ |
11,078 |
|
|
$ |
10,527 |
|
|
$ |
9,461 |
|
|
$ |
21,605 |
|
|
$ |
15,214 |
|
| |
| |
Per Share Data
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
| Net income per common
share:(1) |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.70 |
|
$ |
0.66 |
|
$ |
0.58 |
|
$ |
1.36 |
|
$ |
0.93 |
|
Diluted |
|
$ |
0.68 |
|
$ |
0.65 |
|
$ |
0.57 |
|
$ |
1.33 |
|
$ |
0.92 |
| Average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
15,632,283 |
|
|
15,761,247 |
|
|
16,202,844 |
|
|
15,696,765 |
|
|
16,216,917 |
|
Diluted |
|
|
15,989,606 |
|
|
16,146,611 |
|
|
16,563,359 |
|
|
16,057,607 |
|
|
16,514,831 |
| Book value per share at end of
period |
|
$ |
24.64 |
|
$ |
24.31 |
|
$ |
24.10 |
|
$ |
24.64 |
|
$ |
24.10 |
| Tangible book value per share
at end of period (2) |
|
$ |
23.06 |
|
$ |
22.73 |
|
$ |
22.55 |
|
$ |
23.06 |
|
$ |
22.55 |
| Cash dividends declared per
common share |
|
$ |
0.09 |
|
$ |
0.08 |
|
$ |
0.08 |
|
$ |
0.17 |
|
$ |
0.15 |
| Total shares outstanding at
end of period |
|
|
16,303,461 |
|
|
16,307,658 |
|
|
16,791,027 |
|
|
16,303,461 |
|
|
16,791,027 |
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Basic and diluted net income per common share have
been prepared in accordance with the two-class method. |
| (2) |
See Non-GAAP reconciliation tables below for
adjustments. |
| |
|
| |
|
Selected Financial Ratios and Other Data
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
| Performance
ratios: (1) |
|
|
|
|
|
|
|
Return on assets (ratio of net income to average total assets) |
|
1.24 |
% |
|
1.20 |
% |
|
1.03 |
% |
|
1.21 |
% |
|
0.83 |
% |
| Return on equity (ratio of net
income to average equity) |
|
11.02 |
|
|
10.62 |
|
|
9.41 |
|
|
10.78 |
|
|
7.58 |
|
| Tax equivalent yield on earning
assets(2) |
|
3.49 |
|
|
3.61 |
|
|
3.54 |
|
|
3.55 |
|
|
3.54 |
|
| Rate paid on interest-bearing
liabilities |
|
0.22 |
|
|
0.27 |
|
|
0.59 |
|
|
0.25 |
|
|
0.65 |
|
| Tax equivalent average
interest rate spread (2) |
|
3.27 |
|
|
3.34 |
|
|
2.95 |
|
|
3.30 |
|
|
2.89 |
|
| Tax equivalent net interest
margin(2) (3) |
|
3.33 |
|
|
3.41 |
|
|
3.07 |
|
|
3.37 |
|
|
3.02 |
|
| Average interest-earning assets
to average interest-bearing liabilities |
|
139.06 |
|
|
137.94 |
|
|
126.99 |
|
|
138.50 |
|
|
126.09 |
|
| Operating expense to average
total assets |
|
2.91 |
|
|
2.96 |
|
|
2.88 |
|
|
2.92 |
|
|
2.85 |
|
| Efficiency ratio |
|
69.37 |
|
|
68.36 |
|
|
74.56 |
|
|
68.86 |
|
|
75.33 |
|
| Efficiency ratio - adjusted
(4) |
|
68.81 |
|
|
67.80 |
|
|
73.92 |
|
|
68.30 |
|
|
74.67 |
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Ratios are annualized where appropriate. |
| (2) |
The weighted average rate for municipal leases is
adjusted for a 24% combined federal and state tax rate since the
interest from these leases is tax exempt. |
| (3) |
Net interest income divided by average
interest-earning assets. |
| (4) |
See Non-GAAP reconciliation tables below for
adjustments. |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
| |
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
| Asset quality
ratios: |
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets(1) |
0.18 |
% |
|
0.19 |
% |
|
0.36 |
% |
|
0.37 |
% |
|
0.40 |
% |
| Nonperforming loans to total
loans(1) |
0.23 |
|
|
0.25 |
|
|
0.46 |
|
|
0.49 |
|
|
0.54 |
|
| Total classified assets to
total assets |
0.65 |
|
|
0.65 |
|
|
0.76 |
|
|
0.76 |
|
|
0.74 |
|
| Allowance for credit losses to
nonperforming loans(1) |
500.70 |
|
|
510.63 |
|
|
281.38 |
|
|
272.64 |
|
|
274.05 |
|
| Allowance for credit losses to
total loans |
1.15 |
|
|
1.27 |
|
|
1.30 |
|
|
1.34 |
|
|
1.49 |
|
| Allowance for credit losses to
total gross loans excluding PPP loans(2) |
1.16 |
|
|
1.28 |
|
|
1.32 |
|
|
1.38 |
|
|
1.52 |
|
| Net charge-offs (recoveries)
to average loans (annualized) |
0.15 |
|
|
(0.04 |
) |
|
(0.04 |
) |
|
(0.03 |
) |
|
(0.01 |
) |
| Capital
ratios: |
|
|
|
|
|
|
|
|
|
| Equity to total assets at end
of period |
11.47 |
% |
|
11.39 |
% |
|
11.25 |
% |
|
11.14 |
% |
|
11.00 |
% |
| Tangible equity to total
tangible assets(2) |
10.81 |
|
|
10.73 |
|
|
10.59 |
|
|
10.50 |
|
|
10.36 |
|
| Average equity to average
assets |
11.28 |
|
|
11.27 |
|
|
11.06 |
|
|
10.79 |
|
|
10.95 |
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Nonperforming assets
include nonaccruing loans, consisting of certain restructured
loans, and REO. There were no accruing loans more than 90 days past
due at the dates indicated. At December 31, 2021, there were
$919,000 of restructured loans included in nonaccruing loans and
$2.4 million, or 39.4% of nonaccruing loans were current on their
loan payments. |
| (2) |
See Non-GAAP
reconciliation tables below for adjustments. |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Average Balance Sheet Data
| |
Three Months Ended |
| (Dollars in thousands) |
December 31, 2021 |
|
December 31, 2020 |
| |
AverageBalanceOutstanding |
|
InterestEarned/Paid(2) |
|
Yield/Rate(2) |
|
AverageBalanceOutstanding |
|
InterestEarned/Paid(2) |
|
Yield/Rate(2) |
| |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable(1) |
$ |
2,819,262 |
|
|
$ |
27,236 |
|
3.83 |
% |
|
$ |
2,826,133 |
|
|
$ |
28,648 |
|
4.02 |
% |
| Commercial paper and deposits
in other banks |
|
313,882 |
|
|
|
468 |
|
0.59 |
% |
|
|
417,401 |
|
|
|
614 |
|
0.58 |
% |
| Debt securities available for
sale |
|
121,987 |
|
|
|
411 |
|
1.34 |
% |
|
|
133,856 |
|
|
|
504 |
|
1.50 |
% |
| Other interest-earning
assets(3) |
|
22,327 |
|
|
|
680 |
|
12.09 |
% |
|
|
39,290 |
|
|
|
696 |
|
7.03 |
% |
|
Total interest-earning assets |
|
3,277,458 |
|
|
|
28,795 |
|
3.49 |
% |
|
|
3,416,680 |
|
|
|
30,462 |
|
3.54 |
% |
| Other assets |
|
259,591 |
|
|
|
|
|
|
|
257,572 |
|
|
|
|
|
|
Total assets |
$ |
3,537,049 |
|
|
|
|
|
|
$ |
3,674,252 |
|
|
|
|
|
| Liabilities and
equity: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing checking
accounts |
|
635,268 |
|
|
|
331 |
|
0.21 |
% |
|
|
584,530 |
|
|
|
353 |
|
0.24 |
% |
| Money market accounts |
|
998,297 |
|
|
|
349 |
|
0.14 |
% |
|
|
848,760 |
|
|
|
414 |
|
0.19 |
% |
| Savings accounts |
|
222,464 |
|
|
|
40 |
|
0.07 |
% |
|
|
206,205 |
|
|
|
38 |
|
0.07 |
% |
| Certificate accounts |
|
443,546 |
|
|
|
585 |
|
0.52 |
% |
|
|
576,078 |
|
|
|
1,542 |
|
1.06 |
% |
|
Total interest-bearing deposits |
|
2,299,575 |
|
|
|
1,305 |
|
0.23 |
% |
|
|
2,215,573 |
|
|
|
2,347 |
|
0.42 |
% |
| Borrowings |
|
57,248 |
|
|
|
15 |
|
0.11 |
% |
|
|
475,000 |
|
|
|
1,688 |
|
1.41 |
% |
| Total
interest-bearing liabilities |
|
2,356,823 |
|
|
|
1,320 |
|
0.22 |
% |
|
|
2,690,573 |
|
|
|
4,035 |
|
0.59 |
% |
| Noninterest-bearing
deposits |
|
736,271 |
|
|
|
|
|
|
|
523,488 |
|
|
|
|
|
| Other liabilities |
|
44,974 |
|
|
|
|
|
|
|
57,813 |
|
|
|
|
|
|
Total liabilities |
|
3,138,068 |
|
|
|
|
|
|
|
3,271,874 |
|
|
|
|
|
| Stockholders' equity |
|
398,981 |
|
|
|
|
|
|
|
402,378 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,537,049 |
|
|
|
|
|
|
$ |
3,674,252 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net earning assets |
$ |
920,635 |
|
|
|
|
|
|
$ |
726,107 |
|
|
|
|
|
| Average interest-earning
assets to average interest-bearing liabilities |
|
139.06 |
% |
|
|
|
|
|
|
126.99 |
% |
|
|
|
|
| Tax-equivalent: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
27,475 |
|
|
|
|
|
$ |
26,427 |
|
|
|
Interest rate spread |
|
|
|
|
3.27 |
% |
|
|
|
|
|
2.95 |
% |
|
Net interest margin(4) |
|
|
|
|
3.33 |
% |
|
|
|
|
|
3.07 |
% |
| Non-tax-equivalent: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
27,168 |
|
|
|
|
|
$ |
26,122 |
|
|
|
Interest rate spread |
|
|
|
|
3.23 |
% |
|
|
|
|
|
2.91 |
% |
|
Net interest margin(4) |
|
|
|
|
3.29 |
% |
|
|
|
|
|
3.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The average loans
receivable balances include loans held for sale and nonaccruing
loans. |
| (2) |
Interest income used
in the average interest earned and yield calculation includes the
tax equivalent adjustment of $307 and $305 for the three months
ended December 31, 2021 and 2020, respectively, calculated based on
a combined federal and state tax rate of 24%. |
| (3) |
The average other
interest-earning assets consist of FRB stock, FHLB stock, and SBIC
investments. |
| (4) |
Net interest income
divided by average interest-earning assets. |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Six Months Ended |
| (Dollars in thousands) |
December 31, 2021 |
|
December 31, 2020 |
| |
AverageBalanceOutstanding |
|
InterestEarned/Paid(2) |
|
Yield/Rate(2) |
|
AverageBalanceOutstanding |
|
InterestEarned/Paid(2) |
|
Yield/Rate(2) |
| |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable(1) |
$ |
2,819,482 |
|
|
$ |
55,441 |
|
3.90 |
% |
|
$ |
2,850,783 |
|
|
$ |
57,550 |
|
4.00 |
% |
| Commercial paper and deposits in
other banks |
|
295,746 |
|
|
|
799 |
|
0.54 |
% |
|
|
420,785 |
|
|
|
1,495 |
|
0.70 |
% |
| Debt securities available for
sale |
|
130,143 |
|
|
|
935 |
|
1.43 |
% |
|
|
120,062 |
|
|
|
1,032 |
|
1.71 |
% |
| Other interest-earning
assets(3) |
|
22,020 |
|
|
|
1,235 |
|
11.13 |
% |
|
|
39,118 |
|
|
|
1,144 |
|
5.80 |
% |
|
Total interest-earning assets |
|
3,267,391 |
|
|
|
58,410 |
|
3.55 |
% |
|
|
3,430,748 |
|
|
|
61,221 |
|
3.54 |
% |
| Other assets |
|
260,288 |
|
|
|
|
|
|
|
254,610 |
|
|
|
|
|
|
Total assets |
$ |
3,527,679 |
|
|
|
|
|
|
$ |
3,685,358 |
|
|
|
|
|
| Liabilities and
equity: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing checking
accounts |
|
635,362 |
|
|
|
728 |
|
0.23 |
% |
|
|
572,505 |
|
|
|
750 |
|
0.26 |
% |
| Money market accounts |
|
993,643 |
|
|
|
716 |
|
0.14 |
% |
|
|
837,153 |
|
|
|
964 |
|
0.23 |
% |
| Savings accounts |
|
223,061 |
|
|
|
81 |
|
0.07 |
% |
|
|
203,374 |
|
|
|
75 |
|
0.07 |
% |
| Certificate accounts |
|
450,706 |
|
|
|
1,352 |
|
0.60 |
% |
|
|
632,894 |
|
|
|
3,811 |
|
1.19 |
% |
|
Total interest-bearing deposits |
|
2,302,772 |
|
|
|
2,877 |
|
0.25 |
% |
|
|
2,245,926 |
|
|
|
5,600 |
|
0.49 |
% |
| Borrowings |
|
56,356 |
|
|
|
41 |
|
0.15 |
% |
|
|
475,000 |
|
|
|
3,375 |
|
1.41 |
% |
|
Total interest-bearing
liabilities |
|
2,359,128 |
|
|
|
2,918 |
|
0.25 |
% |
|
|
2,720,926 |
|
|
|
8,975 |
|
0.65 |
% |
| Noninterest-bearing
deposits |
|
722,432 |
|
|
|
|
|
|
|
507,087 |
|
|
|
|
|
| Other liabilities |
|
48,393 |
|
|
|
|
|
|
|
55,699 |
|
|
|
|
|
|
Total liabilities |
|
3,129,953 |
|
|
|
|
|
|
|
3,283,712 |
|
|
|
|
|
| Stockholders' equity |
|
397,726 |
|
|
|
|
|
|
|
401,646 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,527,679 |
|
|
|
|
|
|
$ |
3,685,358 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net earning assets |
$ |
908,263 |
|
|
|
|
|
|
$ |
709,822 |
|
|
|
|
|
| Average interest-earning
assets to average interest-bearing liabilities |
|
138.50 |
% |
|
|
|
|
|
|
126.09 |
% |
|
|
|
|
| Tax-equivalent: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
55,492 |
|
|
|
|
|
$ |
52,246 |
|
|
|
Interest rate spread |
|
|
|
|
3.30 |
% |
|
|
|
|
|
2.89 |
% |
|
Net interest margin(4) |
|
|
|
|
3.37 |
% |
|
|
|
|
|
3.02 |
% |
| Non-tax-equivalent: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
54,875 |
|
|
|
|
|
$ |
51,631 |
|
|
|
Interest rate spread |
|
|
|
|
3.26 |
% |
|
|
|
|
|
2.85 |
% |
|
Net interest margin(4) |
|
|
|
|
3.33 |
% |
|
|
|
|
|
2.99 |
% |
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The average loans
receivable balances include loans held for sale and nonaccruing
loans. |
| (2) |
Interest income used
in the average interest earned and yield calculation includes the
tax equivalent adjustment of $617 and $615 for the six months ended
December 31, 2021 and 2020, respectively, calculated based on a
combined federal and state tax rate of 24%. |
| (3) |
The average other
interest-earning assets consist of FRB stock, FHLB stock, and SBIC
investments. |
| (4) |
Net interest income
divided by average interest-earning assets. |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Loans
| (Dollars in thousands) |
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
| Commercial loans: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
1,113,330 |
|
|
$ |
1,132,764 |
|
|
$ |
1,142,276 |
|
|
$ |
1,088,178 |
|
|
$ |
1,056,971 |
|
|
Construction and development |
|
226,439 |
|
|
|
187,900 |
|
|
|
179,427 |
|
|
|
162,820 |
|
|
|
172,892 |
|
|
Commercial and industrial |
|
162,396 |
|
|
|
153,612 |
|
|
|
141,341 |
|
|
|
140,579 |
|
|
|
138,761 |
|
|
Equipment finance |
|
367,008 |
|
|
|
341,995 |
|
|
|
317,920 |
|
|
|
291,950 |
|
|
|
272,761 |
|
|
Municipal leases |
|
131,078 |
|
|
|
142,100 |
|
|
|
140,421 |
|
|
|
129,141 |
|
|
|
128,549 |
|
|
PPP loans |
|
19,044 |
|
|
|
28,762 |
|
|
|
46,650 |
|
|
|
73,090 |
|
|
|
64,845 |
|
| Total commercial loans |
|
2,019,295 |
|
|
|
1,987,133 |
|
|
|
1,968,035 |
|
|
|
1,885,758 |
|
|
|
1,834,779 |
|
| Retail consumer loans |
|
|
|
|
|
|
|
|
|
|
One-to-four family |
|
356,850 |
|
|
|
384,901 |
|
|
|
406,549 |
|
|
|
430,001 |
|
|
|
452,421 |
|
|
HELOCs - originated |
|
128,189 |
|
|
|
129,791 |
|
|
|
130,225 |
|
|
|
131,867 |
|
|
|
125,397 |
|
|
HELOCs - purchased |
|
30,795 |
|
|
|
33,943 |
|
|
|
38,976 |
|
|
|
46,086 |
|
|
|
58,640 |
|
|
Construction and land/lots |
|
69,253 |
|
|
|
69,835 |
|
|
|
66,027 |
|
|
|
68,118 |
|
|
|
75,108 |
|
|
Indirect auto finance |
|
84,581 |
|
|
|
106,184 |
|
|
|
115,093 |
|
|
|
119,656 |
|
|
|
122,947 |
|
|
Consumer |
|
7,109 |
|
|
|
7,855 |
|
|
|
8,362 |
|
|
|
8,667 |
|
|
|
9,332 |
|
| Total retail consumer
loans |
|
676,777 |
|
|
|
732,509 |
|
|
|
765,232 |
|
|
|
804,395 |
|
|
|
843,845 |
|
| Total loans, net of deferred
loan fees and costs |
|
2,696,072 |
|
|
|
2,719,642 |
|
|
|
2,733,267 |
|
|
|
2,690,153 |
|
|
|
2,678,624 |
|
|
Allowance for credit losses - loans |
|
(30,933 |
) |
|
|
(34,406 |
) |
|
|
(35,468 |
) |
|
|
(36,059 |
) |
|
|
(39,844 |
) |
| Loans, net |
$ |
2,665,139 |
|
|
$ |
2,685,236 |
|
|
$ |
2,697,799 |
|
|
$ |
2,654,094 |
|
|
$ |
2,638,780 |
|
Deposits
| (Dollars in thousands) |
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
| Core deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing accounts |
$ |
677,159 |
|
$ |
711,764 |
|
$ |
636,414 |
|
$ |
528,711 |
|
$ |
469,998 |
|
NOW accounts |
|
644,343 |
|
|
621,675 |
|
|
644,958 |
|
|
727,240 |
|
|
654,960 |
|
Money market accounts |
|
1,010,901 |
|
|
987,650 |
|
|
975,001 |
|
|
927,519 |
|
|
882,366 |
|
Savings accounts |
|
224,474 |
|
|
220,614 |
|
|
226,391 |
|
|
221,537 |
|
|
209,699 |
| Total core deposits |
|
2,556,877 |
|
|
2,541,703 |
|
|
2,482,764 |
|
|
2,405,007 |
|
|
2,217,023 |
| Certificates of deposit |
|
441,814 |
|
|
445,581 |
|
|
472,777 |
|
|
503,471 |
|
|
526,246 |
| Total deposits |
$ |
2,998,691 |
|
$ |
2,987,284 |
|
$ |
2,955,541 |
|
$ |
2,908,478 |
|
$ |
2,743,269 |
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; tangible equity
to tangible assets ratio; and the ratio of the allowance for credit
losses to total loans excluding PPP loans. 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 |
|
Six Months Ended |
| (Dollars in thousands) |
|
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
|
Noninterest expense |
|
$ |
25,909 |
|
|
$ |
26,016 |
|
|
$ |
26,443 |
|
|
$ |
51,925 |
|
|
$ |
52,443 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
$ |
27,168 |
|
|
$ |
27,707 |
|
|
$ |
26,122 |
|
|
$ |
54,875 |
|
|
$ |
51,631 |
|
| Plus: noninterest income |
|
|
10,180 |
|
|
|
10,352 |
|
|
|
9,344 |
|
|
|
20,532 |
|
|
|
17,983 |
|
| Plus: tax equivalent
adjustment |
|
|
307 |
|
|
|
310 |
|
|
|
305 |
|
|
|
617 |
|
|
|
615 |
|
| Net interest income plus
noninterest income – adjusted |
|
$ |
37,655 |
|
|
$ |
38,369 |
|
|
$ |
35,771 |
|
|
$ |
76,024 |
|
|
$ |
70,229 |
|
| Efficiency ratio |
|
|
69.37 |
% |
|
|
68.36 |
% |
|
|
74.56 |
% |
|
|
68.86 |
% |
|
|
75.33 |
% |
| Efficiency ratio - adjusted |
|
|
68.81 |
% |
|
|
67.80 |
% |
|
|
73.92 |
% |
|
|
68.30 |
% |
|
|
74.67 |
% |
Set forth below is a reconciliation to GAAP of tangible book
value and tangible book value per share:
| (Dollars in thousands, except per
share data) |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
|
Total stockholders' equity |
|
$ |
401,746 |
|
$ |
396,511 |
|
$ |
396,519 |
|
$ |
406,452 |
|
$ |
404,724 |
| Less: goodwill, core deposit
intangibles, net of taxes |
|
|
25,780 |
|
|
25,830 |
|
|
25,902 |
|
|
26,002 |
|
|
26,130 |
| Tangible book value |
|
$ |
375,966 |
|
$ |
370,681 |
|
$ |
370,617 |
|
$ |
380,450 |
|
$ |
378,594 |
| Common shares outstanding |
|
|
16,303,461 |
|
|
16,307,658 |
|
|
16,636,483 |
|
|
16,655,347 |
|
|
16,791,027 |
| Tangible book value per
share |
|
$ |
23.06 |
|
$ |
22.73 |
|
$ |
22.28 |
|
$ |
22.84 |
|
$ |
22.55 |
| Book value per share |
|
$ |
24.64 |
|
$ |
24.31 |
|
$ |
23.83 |
|
$ |
24.40 |
|
$ |
24.10 |
Set forth below is a reconciliation to GAAP of tangible equity
to tangible assets:
| (Dollars in thousands) |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
|
Tangible equity(1) |
|
$ |
375,966 |
|
|
$ |
370,681 |
|
|
$ |
370,617 |
|
|
$ |
380,450 |
|
|
$ |
378,594 |
|
| Total assets |
|
|
3,502,819 |
|
|
|
3,481,360 |
|
|
|
3,524,723 |
|
|
|
3,648,613 |
|
|
|
3,679,971 |
|
| Less: goodwill, core deposit
intangibles, net of taxes |
|
|
25,780 |
|
|
|
25,830 |
|
|
|
25,902 |
|
|
|
26,002 |
|
|
|
26,130 |
|
| Total tangible assets |
|
$ |
3,477,039 |
|
|
$ |
3,455,530 |
|
|
$ |
3,498,821 |
|
|
$ |
3,622,611 |
|
|
$ |
3,653,841 |
|
| Tangible equity to tangible
assets |
|
|
10.81 |
% |
|
|
10.73 |
% |
|
|
10.59 |
% |
|
|
10.50 |
% |
|
|
10.36 |
% |
_________________________________
(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.
Set forth below is a reconciliation to GAAP of
the allowance for credit losses to total loans and the allowance
for credit losses as adjusted to exclude PPP loans:
| (Dollars in thousands) |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
|
Total gross loans receivable |
|
$ |
2,696,072 |
|
|
$ |
2,719,642 |
|
|
$ |
2,733,267 |
|
|
$ |
2,690,153 |
|
|
$ |
2,678,624 |
|
| Less: PPP loans |
|
|
19,044 |
|
|
|
28,762 |
|
|
|
46,650 |
|
|
|
73,090 |
|
|
|
64,845 |
|
| Adjusted loans |
|
$ |
2,677,028 |
|
|
$ |
2,690,880 |
|
|
$ |
2,686,617 |
|
|
$ |
2,617,063 |
|
|
$ |
2,613,779 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses |
|
$ |
30,933 |
|
|
$ |
34,406 |
|
|
$ |
35,468 |
|
|
$ |
36,059 |
|
|
$ |
39,844 |
|
| Allowance for credit losses /
Adjusted loans |
|
|
1.16 |
% |
|
|
1.28 |
% |
|
|
1.32 |
% |
|
|
1.38 |
% |
|
|
1.52 |
% |
Contact:
Dana L. Stonestreet – Chairman and Chief Executive Officer
C. Hunter Westbrook – President and Chief Operating Officer
Tony J. VunCannon – Executive Vice President, Chief Financial Officer, Corporate Secretary and Treasurer
828-259-3939
HomeTrust Bancshares (NASDAQ:HTBI)
Historical Stock Chart
From Mar 2024 to Apr 2024
HomeTrust Bancshares (NASDAQ:HTBI)
Historical Stock Chart
From Apr 2023 to Apr 2024
