HomeTrust Bancshares(US:HTBI)2025-05-08 20:17PART I FINANCIAL INFORMATION Item 1. Financial Statements This section presents HomeTrust Bancshares, Inc.'s unaudited consolidated financial statements and detailed notes for the period Consolidated Balance Sheets Total assets slightly decreased to $4.56 billion, while equity increased to $565.4 million as of March 31, 2025 Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | $4,558,060 | $4,595,430 | -0.8% | | Cash and cash equivalents | $299,825 | $279,219 | +7.4% | | Loans, net | $3,603,867 | $3,603,014 | +0.02% | | Total Liabilities | $3,992,611 | $4,043,672 | -1.3% | | Deposits | $3,736,360 | $3,779,203 | -1.1% | | Borrowings | $177,000 | $188,000 | -5.9% | | Total Stockholders' Equity | $565,449 | $551,758 | +2.5% | Consolidated Statements of Income Net income for Q1 2025 was $14.5 million, a slight decrease due to higher expenses and credit loss provisions Consolidated Income Statement Summary (Unaudited) | Account | Three Months Ended Mar 31, 2025 ($ in thousands) | Three Months Ended Mar 31, 2024 ($ in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $42,907 | $41,230 | +4.1% | | Provision for credit losses | $1,540 | $1,165 | +32.2% | | Noninterest Income | $8,027 | $8,811 | -8.9% | | Noninterest Expense | $30,961 | $29,864 | +3.7% | | Net Income | $14,539 | $15,067 | -3.5% | | Diluted EPS | $0.84 | $0.88 | -4.5% | Consolidated Statements of Comprehensive Income Comprehensive income for Q1 2025 increased to $15.6 million, driven by a $1.1 million unrealized gain on AFS debt securities Comprehensive Income Summary (Unaudited) | Account | Three Months Ended Mar 31, 2025 ($ in thousands) | Three Months Ended Mar 31, 2024 ($ in thousands) | | :--- | :--- | :--- | | Net Income | $14,539 | $15,067 | | Total other comprehensive income (loss) | $1,085 | $(604) | | Comprehensive Income | $15,624 | $14,463 | Consolidated Statements of Changes in Stockholders' Equity Stockholders' equity increased to $565.4 million at March 31, 2025, primarily due to $14.5 million in net income and $1.1 million in other comprehensive income - Key drivers for the change in stockholders' equity in Q1 2025 included net income of $14.5 million, cash dividends of $2.1 million ($0.12/share), and common stock repurchases of $0.5 million20 Consolidated Statements of Cash Flows Cash and cash equivalents increased by $20.6 million in Q1 2025, driven by operating and investing activities Cash Flow Summary (Unaudited) | Activity | Three Months Ended Mar 31, 2025 ($ in thousands) | Three Months Ended Mar 31, 2024 ($ in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $71,689 | $(9,034) | | Net cash provided by investing activities | $5,648 | $48,147 | | Net cash used in financing activities | $(56,731) | $(5,760) | | Net increase in cash and cash equivalents | $20,606 | $33,353 | Notes to Consolidated Financial Statements This section provides detailed disclosures for debt securities, loan portfolios, credit losses, deposits, borrowings, and fair value measurements Debt Securities Available for Sale (AFS) at Fair Value | Security Type | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | | :--- | :--- | :--- | | MBS, residential | $144,221 | $144,147 | | Municipal bonds | $1,888 | $3,396 | | Corporate bonds | $4,468 | $4,468 | | Total AFS | $150,577 | $152,011 | - At March 31, 2025, the company had gross unrealized losses of $2.2 million on its AFS debt securities, with the majority ($2.1 million) having been in a loss position for 12 months or more. Management does not believe a credit loss exists and does not intend to sell these securities4041 Loan Portfolio Composition | Loan Category | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | | :--- | :--- | :--- | | Commercial real estate | $1,803,494 | $1,806,365 | | Commercial | $892,805 | $888,543 | | Residential real estate | $888,142 | $879,362 | | Consumer | $64,168 | $74,029 | | Total Loans | $3,648,609 | $3,648,299 | Allowance for Credit Losses (ACL) - Loans | ACL Activity | Three Months Ended Mar 31, 2025 ($ in thousands) | | :--- | :--- | | Beginning Balance (Dec 31, 2024) | $45,285 | | Provision for credit losses | $800 | | Charge-offs | $(1,796) | | Recoveries | $453 | | Ending Balance (Mar 31, 2025) | $44,742 | - Nonaccrual loans totaled $27.0 million at March 31, 2025, a slight decrease from $27.7 million at December 31, 202473 - As of March 31, 2025, the company had $295.3 million in available borrowing capacity from the FHLB and $98.0 million from the FRB, in addition to $165.0 million in unused lines of credit with other banks9697178 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 financial results, highlighting net income of $14.5 million, improved net interest margin, and stable asset quality Q1 2025 vs Q4 2024 Financial Highlights | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net Income | $14.5 million | $14.2 million | | Diluted EPS | $0.84 | $0.83 | | Net Interest Margin | 4.18% | 4.09% | | Provision for Credit Losses | $1.5 million | ($0.86 million) benefit | | Annualized ROA | 1.33% | 1.27% | | Annualized ROE | 10.52% | 10.32% | - Net interest income decreased slightly by $298,000 quarter-over-quarter, as a $2.6 million decrease in interest income (due to lower average loan balances and fewer days) was mostly offset by a $2.3 million decrease in interest expense (due to lower-cost funding mix and fewer days)158159160 - The provision for credit losses was a $1.5 million expense in Q1 2025, a significant shift from the $0.9 million benefit in Q4 2024. The change was driven by a $1.8 million increase in the provision for loans and a $0.6 million increase for off-balance-sheet exposure161 - Noninterest expense decreased by $3.0 million (9.0%) from the prior quarter, primarily due to a $3.0 million one-time contract renewal consulting fee that was present in Q4 2024 but not in Q1 2025164169 - Asset quality remained stable, with nonperforming assets at 0.61% of total assets at March 31, 2025, compared to 0.63% at year-end 2024. The outstanding balance of Hurricane Helene-related payment deferrals decreased from $136.0 million to $109.9 million during the quarter170172 - The company and the bank both exceeded all regulatory capital requirements and were categorized as 'well-capitalized' as of March 31, 2025. The CET1 capital ratio for the company was 13.00%185186 Item 3. Quantitative and Qualitative Disclosures about Market Risk No material changes in the company's market risk disclosures since the 2024 Annual Report on Form 10-K - There has been no material change in the market risk disclosures contained in the 2024 Form 10-K189 Item 4. Controls and Procedures Disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025190 - No material changes to the company's internal control over financial reporting occurred during the quarter ended March 31, 2025193 PART II OTHER INFORMATION Item 1. Legal Proceedings No pending legal proceedings are expected to materially adversely affect the company's financial condition or operations - The company is not a party to any pending legal proceedings that management believes would have a material adverse effect on its financial condition or operations126194 Item 1A. Risk Factors No material changes in the company's risk factors since the 2024 Annual Report on Form 10-K - There have been no material changes in the Risk Factors previously disclosed in the 2024 Form 10-K195 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds In Q1 2025, the company repurchased 14,800 shares at $33.64/share, with 228,356 shares remaining for repurchase Common Stock Repurchases - Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 0 | $0.00 | | Feb 2025 | 0 | $0.00 | | Mar 2025 | 14,800 | $33.64 | | Total | 14,800 | $33.64 | - As of March 31, 2025, 228,356 shares remained authorized for repurchase under the existing plan196 Item 5. Other Information No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q1 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the first quarter of 2025199 Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data