0001538263FALSE00015382632024-07-242024-07-24

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): July 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 July 24, 2024, HomeTrust Bancshares, Inc., (the "Company") the holding company for HomeTrust Bank, issued a press release reporting financial results for the second 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 July 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: July 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 Second Quarter
of the Year Ending December 31, 2024 and Declaration of a Quarterly Dividend

ASHEVILLE, N.C., July 24, 2024 – HomeTrust Bancshares, Inc. (NASDAQ: HTBI) ("Company" or "HomeTrust"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the second quarter of the year ending December 31, 2024 and approval of its quarterly cash dividend.
For the quarter ended June 30, 2024 compared to the quarter ended March 31, 2024:
•net income was $12.4 million compared to $15.1 million;
•diluted earnings per share ("EPS") were $0.73 compared to $0.88;
•annualized return on assets ("ROA") was 1.13% compared to 1.37%;
•annualized return on equity ("ROE") was 9.58% compared to 11.91%;
•net interest margin was 4.08% compared to 4.02%;
•provision for credit losses was $4.3 million compared to $1.2 million;
•tax-free death benefit proceeds from life insurance were $0 compared to $1.1 million;
•The Company repurchased 23,483 shares of its outstanding common stock during the quarter at an average price of $27.48; and
•quarterly cash dividends continued at $0.11 per share totaling $1.9 million for both periods.
For the six months ended June 30, 2024 compared to the six months ended June 30, 2023:
•net income was $27.5 million compared to $21.8 million;
•diluted EPS were $1.61 compared to $1.30;
•annualized ROA was 1.25% compared to 1.06%;
•annualized ROE was 10.73% compared to 9.65%;
•net interest margin was 4.05% compared to 4.43%;
•provision for credit losses was $5.4 million compared to $9.2 million;
•tax-free death benefit proceeds from life insurance were $1.1 million compared to $0; and
•cash dividends of $0.22 per share totaling $3.7 million compared to $0.20 per share totaling $3.4 million.
Results for the six months ended June 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 six months ended June 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 $0.11 per common share payable on August 29, 2024 to shareholders of record as of the close of business on August 15, 2024.
“Our financial results for the second quarter continue to reflect our goal of high performance combined with our strategy of being a best place to work,” said Hunter Westbrook, President and Chief Executive Officer. “Our performance remained strong, aided by the expansion of our top quartile net interest margin which remains was again above 4.00%, while noninterest income and expense were both in line with the prior quarter. The decrease in our net income this quarter is reflective of an allowance build for potential credit losses on individual equipment finance and SBA loans that are in the early stages of collateral and collectability evaluation.
“As previously announced, HomeTrust was recently named a 2024 Best Place to Work in South Carolina by the Best Companies Group, supplementing our prior quarter Newsweek certification as a 2024 Most Loved Workplace. This is further validation of the culture we have developed at HomeTrust, which directly impacts our ability to continue as a high-performing, regional community bank.”

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 June 30, 2024 and March 31, 2024
Net Income.  Net income totaled $12.4 million, or $0.73 per diluted share, for the three months ended June 30, 2024 compared to net income of $15.1 million, or $0.88 per diluted share, for the three months ended March 31, 2024, a decrease of $2.7 million, or 17.6%. Results for the three months ended June 30, 2024 were negatively impacted by an increase of $3.1 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
 June 30, 2024
March 31, 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)
$3,885,222$62,161 6.43 %$3,864,258$59,952 6.24 %
Debt securities available for sale134,3341,495 4.48 126,6861,313 4.17 
Other interest-earning assets(2)
140,3761,758 5.04 131,4952,090 6.39 
Total interest-earning assets4,159,93265,414 6.32 4,122,43963,355 6.18 
Other assets266,983298,117
Total assets$4,426,915$4,420,556
Liabilities and equity
Interest-bearing liabilities
Interest-bearing checking accounts$586,396$1,445 0.99 %$590,738$1,426 0.97 %
Money market accounts1,298,17710,221 3.17 1,281,3409,664 3.03 
Savings accounts188,02841 0.09 191,74743 0.09 
Certificate accounts902,8649,976 4.44 887,6189,185 4.16 
Total interest-bearing deposits2,975,46521,683 2.93 2,951,44320,318 2.77 
Junior subordinated debt10,054234 9.36 10,029236 9.46 
Borrowings87,3151,331 6.13 103,1551,571 6.13 
Total interest-bearing liabilities3,072,83423,248 3.04 3,064,62722,125 2.90 
Noninterest-bearing deposits769,016810,114
Other liabilities63,50336,945
Total liabilities3,905,3533,911,686
Stockholders' equity521,562508,870
Total liabilities and stockholders' equity$4,426,915$4,420,556
Net earning assets$1,087,098$1,057,812
Average interest-earning assets to average interest-bearing liabilities135.38 %134.52 %
Non-tax-equivalent
Net interest income$42,166 $41,230 
Interest rate spread3.28 %3.28 %
Net interest margin(3)
4.08 %4.02 %
Tax-equivalent(4)
Net interest income$42,520 $41,579 
Interest rate spread3.32 %3.32 %
Net interest margin(3)
4.11 %4.06 %
(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 $354 and $349 for the three months ended June 30, 2024 and March 31, 2024, respectively, calculated based on a combined federal and state tax rate of 24%.
Total interest and dividend income for the three months ended June 30, 2024 increased $2.1 million, or 3.2%, compared to the three months ended March 31, 2024, which was driven by a $2.2 million, or 3.7%, increase in loan interest income primarily due to changes in interest rates. Accretion income on acquired loans of $678,000 and $715,000 was recognized during the same periods, respectively, and was included in interest income on loans.
2

Total interest expense for the three months ended June 30, 2024 increased $1.1 million, or 5.1%, compared to the three months ended March 31, 2024. The increase was the result of both increases in the average cost of funds, due to increased market rates, and average balances across interest-bearing deposit types, partially offset by a decline in average borrowings outstanding.
The following table shows the effects that changes in average balances (volume), including differences in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:
Increase / (Decrease)
Due to		Total
Increase /
(Decrease)
(Dollars in thousands)VolumeRate
Interest-earning assets
Loans receivable$325 $1,884 $2,209 
Debt securities available for sale79 103 182 
Other interest-earning assets141 (473)(332)
Total interest-earning assets545 1,514 2,059 
Interest-bearing liabilities
Interest-bearing checking accounts(10)29 19 
Money market accounts127 430 557 
Savings accounts(1)(1)(2)
Certificate accounts158 633 791 
Junior subordinated debt1 (3)(2)
Borrowings(241)1 (240)
Total interest-bearing liabilities34 1,089 1,123 
Increase in net interest income$936 
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)
June 30, 2024
March 31, 2024
$ Change% Change
Provision for credit losses
Loans$4,300 $1,145 $3,155 276 %
Off-balance-sheet credit exposure(40)20 (60)(300)
Total provision for credit losses$4,260 $1,165 $3,095 266 %
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. Further information on the change in nonperforming loans may be found in the "Asset Quality" section.
For the quarter ended March 31, 2024, the "loans" portion of the provision for credit losses was the result of the following, offset by net charge-offs of $2.3 million during the quarter:
•$0.1 million benefit driven by changes in the loan mix.
•$0.9 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.
•$0.2 million decrease in specific reserves on individually evaluated credits.
For the quarters ended June 30, 2024 and March 31, 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 June 30, 2024 decreased $698,000, or 7.9%, when compared to the quarter ended March 31, 2024. Changes in the components of noninterest income are discussed below:
Three Months Ended
(Dollars in thousands)
June 30, 2024
March 31, 2024
$ Change% Change
Noninterest income
Service charges and fees on deposit accounts$2,354 $2,149 $205 10 %
Loan income and fees647 678 (31)(5)
Gain on sale of loans held for sale1,828 1,457 371 25 
Bank owned life insurance ("BOLI") income807 1,835 (1,028)(56)
Operating lease income1,591 1,859 (268)(14)
Loss on sale of premises and equipment— (9)9 100 
Other886 842 44 5 
Total noninterest income$8,113 $8,811 $(698)(8)%
•Service charges and fees on deposit accounts: The change was due to a $154,000 increase in debit card fees quarter-over-quarter.
•Gain on sale of loans held for sale: The increase was primarily driven by HELOCs sold during the period. There were $32.9 million of HELOCs sold for a gain of $457,000 compared to $7.8 million sold with gains of $16,000 in the prior quarter. There were $21.3 million of residential mortgage loans originated for sale which were sold during the current quarter with gains of $351,000 compared to $15.3 million sold with gains of $316,000 in the prior quarter. There were $12.7 million in sales of the guaranteed portion of SBA commercial loans with gains of $1.1 million for the quarter compared to $12.9 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 loss of $58,000 for the quarter ended June 30, 2024 versus a gain of $55,000 for the quarter ended March 31, 2024.
•BOLI income: The decrease was due to $1.1 million in tax-free gains on death benefit proceeds in excess of the cash surrender value of the policies recognized during the prior quarter. No death benefit proceeds were recognized during the current quarter.
•Operating lease income: The decrease was the result of an increase of $497,000 in losses incurred on previously leased equipment, partially offset by an increase of $228,000 in contractual earnings on a larger average outstanding balance.
Noninterest Expense.  Noninterest expense for the three months ended June 30, 2024 decreased $346,000, or 1.2%, when compared to the three months ended March 31, 2024. Changes in the components of noninterest expense are discussed below:
Three Months Ended
(Dollars in thousands)
June 30, 2024
March 31, 2024
$ Change% Change
Noninterest expense
Salaries and employee benefits$16,608 $16,976 $(368)(2)%
Occupancy expense, net2,419 2,437 (18)(1)
Computer services3,116 3,088 28 1 
Telephone, postage and supplies580 585 (5)(1)
Marketing and advertising606 645 (39)(6)
Deposit insurance premiums531 554 (23)(4)
Core deposit intangible amortization567 762 (195)(26)
Other5,783 4,817 966 20 
Total noninterest expense$30,210 $29,864 $346 1 %
•Core deposit intangible amortization: The intangible recorded associated with the QNB merger is being amortized on an accelerated basis, so the rate of amortization slowed quarter-over-quarter.
•Other: The increase quarter-over-quarter was primarily the result of $279,000 of additional depreciation expense on equipment subject to operating leases in addition to smaller increases across several other expense categories.
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 June 30, 2024 and March 31, 2024 were 21.4% and 20.8%, respectively. The increase was primarily driven by $1.1 million of tax-free gains on BOLI death benefit proceeds in excess of the cash surrender value of the policies during the prior quarter.
4

Comparison of Results of Operations for the Six Months Ended June 30, 2024 and June 30, 2023
Net Income.  Net income totaled $27.5 million, or $1.61 per diluted share, for the six months ended June 30, 2024 compared to net income of $21.7 million, or $1.30 per diluted share, for the six months ended June 30, 2023, an increase of $5.7 million, or 26.4%. The results for the six months ended June 30, 2024 were positively impacted by a decrease of $3.7 million in the provision for credit losses and a $4.7 million decrease in merger-related expenses. 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.
 
Six Months Ended
 June 30, 2024June 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)
$3,874,740$122,113 6.34 %$3,592,527$104,030 5.84 %
Debt securities available for sale130,5102,808 4.33 160,4622,521 3.17 
Other interest-earning assets(2)
135,9363,848 5.69 131,3103,246 4.98 
Total interest-earning assets4,141,186128,769 6.25 3,884,299109,797 5.70 
Other assets282,550262,118
Total assets$4,423,736$4,146,417
Liabilities and equity
Interest-bearing liabilities
Interest-bearing checking accounts$588,567$2,870 0.98 %$642,115$2,124 0.67 %
Money market accounts1,289,75819,885 3.10 1,197,85610,877 1.83 
Savings accounts189,88784 0.09 224,37397 0.09 
Certificate accounts895,24219,162 4.30 578,6397,428 2.59 
Total interest-bearing deposits2,963,45442,001 2.85 2,642,98320,526 1.57 
Junior subordinated debt10,042470 9.41 7,640327 8.63 
Borrowings95,2352,902 6.13 133,9623,594 5.41 
Total interest-bearing liabilities3,068,73145,373 2.97 2,784,58524,447 1.78 
Noninterest-bearing deposits789,565855,041
Other liabilities50,22452,480
Total liabilities3,908,5203,692,106
Stockholders' equity515,216454,311
Total liabilities and stockholders' equity$4,423,736$4,146,417
Net earning assets$1,072,455$1,099,714
Average interest-earning assets to average interest-bearing liabilities134.95 %139.49 %
Non-tax-equivalent
Net interest income$83,396 $85,350 
Interest rate spread3.28 %3.92 %
Net interest margin(3)
4.05 %4.43 %
Tax-equivalent(4)
Net interest income$84,100 $85,938 
Interest rate spread3.32 %3.95 %
Net interest margin(3)
4.08 %4.46 %
(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 $704 and $588 for the six months ended June 30, 2024 and June 30, 2023, respectively, calculated based on a combined federal and state tax rate of 24%.
Total interest and dividend income for the six months ended June 30, 2024 increased $19.0 million, or 17.3%, compared to the six months ended June 30, 2023, which was driven by an $18.1 million, or 17.4%, increase in interest income on loans and an increase of $602,000, or 18.5%, in interest income on other interest-earning assets. The overall increase in average yield on interest-earning assets was the result of both higher average balances and rising interest rates.
5

Total interest expense for the six months ended June 30, 2024 increased $20.9 million, or 85.6%, compared to the six months ended June 30, 2023. The increase was primarily the result of increases in the average balances and cost of funds across all funding sources driven by higher market interest rates, as well as the inclusion of Quantum's portfolio for the entire period, unlike last year.
The following table shows the effects that changes in average balances (volume), including differences in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:
Increase / (Decrease)
Due to		Total
Increase /
(Decrease)
(Dollars in thousands)VolumeRate
Interest-earning assets
Loans receivable$8,510 $9,573 $18,083 
Debt securities available for sale(463)750 287 
Other interest-earning assets125 477 602 
Total interest-earning assets8,172 10,800 18,972 
Interest-bearing liabilities
Interest-bearing checking accounts(169)915 746 
Money market accounts890 8,118 9,008 
Savings accounts(15)2 (13)
Certificate accounts4,117 7,617 11,734 
Junior subordinated debt104 39 143 
Borrowings(1,031)339 (692)
Total interest-bearing liabilities3,896 17,030 20,926 
Decrease in net interest income$(1,954)
Provision for Credit Losses.  The following table presents a breakdown of the components of the provision for credit losses:
Six Months Ended
(Dollars in thousands)
June 30, 2024
June 30, 2023
$ Change% Change
Provision for credit losses
Loans$5,445 $9,270 $(3,825)(41)%
Off-balance-sheet credit exposure(20)(105)85 81 
Total provision for credit losses$5,425 $9,165 $(3,740)(41)%
For the six months 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 $4.9 million during the period:
•$1.3 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.
•$1.8 million increase in specific reserves on individually evaluated loans which was proportional to the increase in the associated loan balances which increased from $8.1 million to $16.3 million during the six month period, concentrated in the equipment finance and SBA portfolios. Further information on the change in nonperforming loans may be found in the "Asset Quality" section.
For the six months ended June 30, 2023, the "loans" portion of the provision for credit losses was the result of the following, in addition to net charge-offs of $1.3 million during the period:
•$4.9 million provision to establish an allowance on Quantum's loan portfolio.
•$2.1 million provision driven by loan growth and changes in the loan mix.
•$0.9 million provision due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.
•$0.1 million increase in specific reserves on individually evaluated credits.
For the six months ended June 30, 2024 and June 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 six months ended June 30, 2024 increased $1.7 million, or 11.4%, when compared to the same period last year. Changes in the components of noninterest income are discussed below:
Six Months Ended
(Dollars in thousands)
June 30, 2024
June 30, 2023
$ Change% Change
Noninterest income
Service charges and fees on deposit accounts$4,503 $4,649 $(146)(3)%
Loan income and fees1,325 1,354 (29)(2)
Gain on sale of loans held for sale3,285 2,920 365 13 
BOLI income2,642 1,095 1,547 141 
Operating lease income3,450 2,730 720 26 
Gain (loss) on sale of premises and equipment(9)982 (991)(101)
Other1,728 1,468 260 18 
Total noninterest income$16,924 $15,198 $1,726 11 %
•Gain on sale of loans held for sale: The increase in the gain on sale of loans held for sale was primarily driven by HELOCs and SBA loans sold during the period. During the six months ended June 30, 2024, there were $40.7 million of HELOCs sold for a gain of $473,000 compared to $35.2 million sold and gains of $354,000 for the corresponding period in the prior year. There were $25.6 million of sales of the guaranteed portion of SBA commercial loans with gains of $2.1 million compared to $28.8 million sold and gains of $1.9 million for the corresponding period in the prior year. There were $36.6 million of residential mortgage loans originated for sale which were sold during the current period with gains of $667,000 compared to $28.4 million sold with gains of $382,000 for the corresponding period in the prior year. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a loss of $3,000 for the six months ended June 30, 2024 versus a gain of $268,000 for the six months ended June 30, 2023.
•BOLI income: The increase was due to the combined effect of $1.1 million in tax-free gains on death benefit proceeds in excess of the cash surrender value of the policies recognized and higher yielding policies as a result of restructuring the portfolio at the end of the prior calendar year.
•Operating lease income: The increase was the result of $1.2 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 net losses of $787,000 and $262,000 in the six months ended June 30, 2024 and June 30, 2023, respectively.
•Gain (loss) on sale of premises and equipment: During the six months ended June 30, 2023, two properties were sold for a combined gain of $982,000. No material disposal activity occurred during the six months ended June 30, 2024.
•Other: The increase was driven by a $270,000 increase in investment services income recognized period-over-period.
Noninterest Expense.  Noninterest expense for the six months ended June 30, 2024 decreased $3.7 million, or 5.8%, when compared to the same period last year. Changes in the components of noninterest expense are discussed below:
Six Months Ended
(Dollars in thousands)
June 30, 2024
June 30, 2023
$ Change% Change
Noninterest expense
Salaries and employee benefits$33,584 $32,922 $662 2 %
Occupancy expense, net4,856 5,067 (211)(4)
Computer services6,204 6,213 (9)— 
Telephone, postage and supplies1,165 1,290 (125)(10)
Marketing and advertising1,251 1,068 183 17 
Deposit insurance premiums1,085 1,161 (76)(7)
Core deposit intangible amortization1,329 1,465 (136)(9)
Merger-related expenses— 4,741 (4,741)(100)
Other10,600 9,817 783 8 
Total noninterest expense$60,074 $63,744 $(3,670)(6)%
•Marketing and advertising: The increase was the result of differences in the timing of when expenses were incurred quarter-over-quarter.
•Merger-related expenses: The prior period included expenses associated with the Company's merger with Quantum. No such expenses were incurred in the six months ended June 30, 2024.
•Other: The increase period-over-period was primarily driven by $1.0 million of additional depreciation expense on equipment subject to operating leases, partially offset by a decrease of $314,000 in fraud losses.
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 six months ended June 30, 2024 and June 30, 2023 were 21.1% and 21.3%, respectively.
7

Balance Sheet Review
Total assets decreased by $1.8 million to $4.7 billion and total liabilities decreased by $25.5 million to $4.1 billion, respectively, at June 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, were used to fund growth in loans and pay down borrowings.
Stockholders' equity increased $23.7 million to $523.6 million at June 30, 2024 as compared to December 31, 2023. Activity within stockholders' equity included $27.5 million in net income, partially offset by $3.7 million in cash dividends declared. As of June 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 $49.2 million, or 1.33% of total loans, at June 30, 2024 compared to $48.6 million, or 1.34% of total loans, at December 31, 2023. The drivers of the changes between periods are discussed in the "Comparison of Results of Operations for the Six Months Ended June 30, 2024 and June 30, 2023 – Provision for Credit Losses" section above.
Net loan charge-offs totaled $4.9 million for the six months ended June 30, 2024 compared to $1.3 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 $3.4 million during the identified period. 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 were 0.25% for the six months ended June 30, 2024, in line with the Company's historical experience, as compared to 0.07% for the six months ended June 30, 2023.
Nonperforming assets, made up entirely of nonaccrual loans for both periods, increased by $5.9 million, or 30.7%, to $25.3 million, or 0.54% of total assets, at June 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 $10.6 million and $6.5 million, respectively, at these same dates; however, the increase between these two dates was mainly the result of a $3.1 million medical equipment relationship where a loss is not currently anticipated. The ratio of nonperforming loans to total loans was 0.68% at June 30, 2024 compared to 0.53% at December 31, 2023.
The ratio of classified assets to total assets increased to 0.91% at June 30, 2024 from 0.90% at December 31, 2023 as classified assets increased $696,000, or 1.7%, to $42.7 million at June 30, 2024 compared to $42.0 million at December 31, 2023. The largest portfolios of classified assets at June 30, 2024 included $11.8 million of non-owner occupied commercial real estate (NOO CRE) loans, $10.6 million of equipment finance loans, $8.1 million of SBA loans, and $5.2 million of 1-4 family residential real estate loans.
About HomeTrust Bancshares, Inc.
HomeTrust Bancshares, Inc. is the holding company for the Bank. As of June 30, 2024, the Company had assets of $4.7 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; 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)
June 30, 2024
March 31, 2024
December 31, 2023(1)
September 30, 2023
June 30, 2023(1)
Assets
Cash$18,382 $16,134 $18,307 $18,090 $19,266 
Interest-bearing deposits275,808 364,359 328,833 306,924 284,231 
Cash and cash equivalents294,190 380,493 347,140 325,014 303,497 
Certificates of deposit in other banks32,131 33,625 34,722 35,380 33,152 
Debt securities available for sale, at fair value134,135 120,807 126,950 134,348 151,926 
FHLB and FRB stock19,637 13,691 18,393 19,612 20,208 
SBIC investments, at cost15,462 14,568 13,789 14,586 14,927 
Loans held for sale, at fair value1,614 2,764 3,359 4,616 6,947 
Loans held for sale, at the lower of cost or fair value224,976 220,699 198,433 200,834 161,703 
Loans, net of deferred loan fees and costs3,701,454 3,648,152 3,640,022 3,659,914 3,658,823 
Allowance for credit losses – loans(49,223)(47,502)(48,641)(47,417)(47,193)
Loans, net3,652,231 3,600,650 3,591,381 3,612,497 3,611,630 
Premises and equipment, net69,880 70,588 70,937 72,463 73,171 
Accrued interest receivable18,412 16,944 16,902 16,513 14,829 
Deferred income taxes, net10,512 11,222 11,796 9,569 10,912 
BOLI89,176 88,369 88,257 106,059 106,572 
Goodwill34,111 34,111 34,111 34,111 34,111 
Core deposit intangibles, net7,730 8,297 9,059 9,918 10,778 
Other assets66,667 67,183 107,404 56,477 53,124 
Total assets$4,670,864 $4,684,011 $4,672,633 $4,651,997 $4,607,487 
Liabilities and stockholders' equity
Liabilities
Deposits$3,707,779 $3,799,807 $3,661,373 $3,640,961 $3,601,168 
Junior subordinated debt10,070 10,045 10,021 9,995 9,971 
Borrowings364,513 291,513 433,763 452,263 457,263 
Other liabilities64,874 69,473 67,583 64,367 67,899 
Total liabilities4,147,236 4,170,838 4,172,740 4,167,586 4,136,301 
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)
175 175 174 174 174 
Additional paid in capital172,907 172,919 172,366 171,663 171,222 
Retained earnings357,147 346,598 333,401 321,799 308,651 
Unearned Employee Stock Ownership Plan ("ESOP") shares(4,232)(4,364)(4,497)(4,629)(4,761)
Accumulated other comprehensive loss(2,369)(2,155)(1,551)(4,596)(4,100)
Total stockholders' equity523,628 513,173 499,893 484,411 471,186 
Total liabilities and stockholders' equity$4,670,864 $4,684,011 $4,672,633 $4,651,997 $4,607,487 
(1)Derived from audited financial statements.
(2)Shares of common stock issued and outstanding were 17,437,326 at June 30, 2024; 17,444,787 at March 31, 2024; 17,387,069 at December 31, 2023; 17,380,307 at September 30, 2023; and 17,366,673 at June 30, 2023.

9

Consolidated Statements of Income (Unaudited)
Three Months Ended
Six Months Ended
(Dollars in thousands)
June 30, 2024
March 31, 2024
June 30, 2024
June 30, 2023
Interest and dividend income
Loans$62,161 $59,952 $122,113 $104,030 
Debt securities available for sale1,495 1,313 2,808 2,521 
Other investments and interest-bearing deposits1,758 2,090 3,848 3,246 
Total interest and dividend income65,414 63,355 128,769 109,797 
Interest expense
Deposits21,683 20,318 42,001 20,526 
Junior subordinated debt234 236 470 327 
Borrowings1,331 1,571 2,902 3,594 
Total interest expense23,248 22,125 45,373 24,447 
Net interest income42,166 41,230 83,396 85,350 
Provision for credit losses 4,260 1,165 5,425 9,165 
Net interest income after provision for credit losses37,906 40,065 77,971 76,185 
Noninterest income  
Service charges and fees on deposit accounts2,354 2,149 4,503 4,649 
Loan income and fees647 678 1,325 1,354 
Gain on sale of loans held for sale1,828 1,457 3,285 2,920 
BOLI income807 1,835 2,642 1,095 
Operating lease income1,591 1,859 3,450 2,730 
Gain (loss) on sale of premises and equipment— (9)(9)982 
Other886 842 1,728 1,468 
Total noninterest income8,113 8,811 16,924 15,198 
Noninterest expense  
Salaries and employee benefits16,608 16,976 33,584 32,922 
Occupancy expense, net2,419 2,437 4,856 5,067 
Computer services3,116 3,088 6,204 6,213 
Telephone, postage and supplies580 585 1,165 1,290 
Marketing and advertising606 645 1,251 1,068 
Deposit insurance premiums531 554 1,085 1,161 
Core deposit intangible amortization567 762 1,329 1,465 
Merger-related expenses— — — 4,741 
Other5,783 4,817 10,600 9,817 
Total noninterest expense30,210 29,864 60,074 63,744 
Income before income taxes15,809 19,012 34,821 27,639 
Income tax expense3,391 3,945 7,336 5,892 
Net income$12,418 $15,067 $27,485 $21,747 
10

Per Share Data
Three Months Ended 
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2024
June 30, 2023
Net income per common share(1)
Basic$0.73 $0.88 $1.61 $1.31 
Diluted$0.73 $0.88 $1.61 $1.30 
Average shares outstanding
Basic16,883,028 16,859,738 16,871,383 16,400,370 
Diluted16,904,098 16,872,840 16,888,550 16,427,587 
Book value per share at end of period$30.03 $29.42 $30.03 $27.13 
Tangible book value per share at end of period(2)
$27.73 $27.10 $27.73 $24.69 
Cash dividends declared per common share$0.11 $0.11 $0.22 $0.20 
Total shares outstanding at end of period17,437,326 17,444,787 17,437,326 17,366,673 
(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
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2024
June 30, 2023
Performance ratios(1)
Return on assets (ratio of net income to average total assets)1.13 %1.37 %1.25 %1.06 %
Return on equity (ratio of net income to average equity)9.58 11.91 10.73 9.65 
Yield on earning assets6.32 6.18 6.25 5.70 
Rate paid on interest-bearing liabilities3.04 2.90 2.97 1.78 
Average interest rate spread3.28 3.28 3.28 3.92 
Net interest margin(2)
4.08 4.02 4.05 4.43 
Average interest-earning assets to average interest-bearing liabilities135.38 134.52 134.95 139.88 
Noninterest expense to average total assets2.74 2.72 2.73 3.10 
Efficiency ratio60.08 59.69 59.88 63.40 
Efficiency ratio – adjusted(3)
59.66 60.64 60.14 58.91 
(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
June 30, 2024
March 31, 2024
December 31, 2023September 30, 2023June 30, 2023
Asset quality ratios
Nonperforming assets to total assets(1)
0.54 %0.43 %0.41 %0.25 %0.18 %
Nonperforming loans to total loans(1)
0.68 0.55 0.53 0.32 0.23 
Total classified assets to total assets0.91 0.80 0.90 0.76 0.53 
Allowance for credit losses to nonperforming loans(1)
194.80 235.18 251.60 400.41 567.56 
Allowance for credit losses to total loans1.33 1.30 1.34 1.30 1.29 
Net charge-offs to average loans (annualized)0.27 0.24 0.29 0.27 0.13 
Capital ratios
Equity to total assets at end of period11.21 %10.96 %10.70 %10.41 %10.23 %
Tangible equity to total tangible assets(2)
10.44 10.18 9.91 9.60 9.39 
Average equity to average assets11.78 11.51 11.03 10.84 10.79 
(1)Nonperforming assets include nonaccruing loans and REO. There were no accruing loans more than 90 days past due at the dates indicated. At June 30, 2024, $8.3 million, or 32.9%, 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)
June 30, 2024
March 31, 2024
December 31, 2023September 30, 2023June 30, 2023
Commercial real estate loans
Construction and land development$316,050 $304,727 $305,269 $352,143 $356,674 
Commercial real estate – owner occupied545,631 532,547 536,545 526,534 529,721 
Commercial real estate – non-owner occupied892,653 881,143 875,694 880,348 901,685 
Multifamily92,292 89,692 88,623 83,430 81,827 
Total commercial real estate loans1,846,626 1,808,109 1,806,131 1,842,455 1,869,907 
Commercial loans
Commercial and industrial266,136 243,732 237,255 237,366 245,428 
Equipment finance461,010 462,649 465,573 470,387 462,211 
Municipal leases152,509 151,894 150,292 147,821 142,212 
Total commercial loans879,655 858,275 853,120 855,574 849,851 
Residential real estate loans
Construction and land development70,679 85,840 96,646 103,381 110,074 
One-to-four family621,196 605,570 584,405 560,399 529,703 
HELOCs188,465 184,274 185,878 185,289 187,193 
Total residential real estate loans880,340 875,684 866,929 849,069 826,970 
Consumer loans94,833 106,084 113,842 112,816 112,095 
Total loans, net of deferred loan fees and costs3,701,454 3,648,152 3,640,022 3,659,914 3,658,823 
Allowance for credit losses – loans(49,223)(47,502)(48,641)(47,417)(47,193)
Loans, net$3,652,231 $3,600,650 $3,591,381 $3,612,497 $3,611,630 
Deposits
(Dollars in thousands)
June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
Core deposits
Noninterest-bearing accounts$683,346 $773,901 $784,950 $827,362 $825,481 
NOW accounts561,789 600,561 591,270 602,804 611,105 
Money market accounts1,311,940 1,308,467 1,246,807 1,195,482 1,241,840 
Savings accounts185,499 191,302 194,486 202,971 212,220 
Total core deposits2,742,574 2,874,231 2,817,513 2,828,619 2,890,646 
Certificates of deposit965,205 925,576 843,860 812,342 710,522 
Total$3,707,779 $3,799,807 $3,661,373 $3,640,961 $3,601,168 

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 EndedSix Months Ended
(Dollars in thousands)June 30, 2024March 31, 2024June 30, 2024June 30, 2023
Noninterest expense$30,210 $29,864 $60,074 $63,744 
Less: merger expense— — — 4,741 
Noninterest expense – adjusted$30,210 $29,864 $60,074 $59,003 
Net interest income$42,166 $41,230 $83,396 $85,350 
Plus: tax-equivalent adjustment354 349 704 588 
Plus: noninterest income8,113 8,811 16,924 15,198 
Less: BOLI death benefit proceeds in excess of cash surrender value— 1,143 1,143 — 
Less: gain (loss) on sale of premises and equipment— (9)(9)982 
Net interest income plus noninterest income – adjusted$50,633 $49,256 $99,890 $100,154 
Efficiency ratio60.08 %59.69 %59.88 %63.40 %
Efficiency ratio – adjusted59.66 %60.64 %60.14 %58.91 %
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)June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
Total stockholders' equity$523,628 $513,173 $499,893 $484,411 $471,186 
Less: goodwill, core deposit intangibles, net of taxes40,063 40,500 41,086 41,748 42,410 
Tangible book value$483,565 $472,673 $458,807 $442,663 $428,776 
Common shares outstanding17,437,326 17,444,787 17,387,069 17,380,307 17,366,673 
Book value per share$30.03 $29.42 $28.75 $27.87 $27.13 
Tangible book value per share$27.73 $27.10 $26.39 $25.47 $24.69 
Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:
As of
(Dollars in thousands)June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
Tangible equity(1)
$483,565 $472,673 $458,807 $442,663 $428,776 
Total assets4,670,864 4,684,011 4,672,633 4,651,997 4,607,487 
Less: goodwill, core deposit intangibles, net of taxes40,063 40,500 41,086 41,748 42,410 
Total tangible assets$4,630,801 $4,643,511 $4,631,547 $4,610,249 $4,565,077 
Tangible equity to tangible assets10.44 %10.18 %9.91 %9.60 %9.39 %
(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
v3.24.2
Document and Entity Information
Jul. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 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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