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Sep 30, 2020
Hometrust Q1 2021 Earnings Report
Net income decreased due to the weakened economy from COVID-19, and lower interest rate margin because of decreased interest rates.
Key Takeaways
HomeTrust Bancshares, Inc. reported a net income of $5.8 million for the first quarter of fiscal year 2021, a decrease compared to the $8.8 million reported in the same quarter of the previous year. The company's diluted earnings per share were $0.35, down from $0.49 year-over-year. The Board of Directors declared a quarterly cash dividend of $0.08 per common share.
Net income was $5.8 million, compared to $8.8 million in the corresponding quarter of the previous year.
Diluted earnings per share (EPS) was $0.35, compared to $0.49 year-over-year.
Noninterest income increased by $979,000, or 12.8%, reaching $8.6 million.
The Board of Directors declared a quarterly cash dividend of $0.08 per common share, reflecting a 14% increase over the previous quarter's dividend.
Hometrust
Hometrust
Hometrust Revenue by Geographic Location
Revenue by Geographic Location
Piedmont Region Revenue
CapyFin.com Forward Guidance
The company did not provide specific forward guidance, but expressed optimism.
Positive Outlook
- The company set a new quarterly record of $96.0 million of mortgage loans originated for sale, which resulted in a gain on sale of $2.2 million.
- Gain from the sales of SBA and home equity loans totaled $1.1 million.
- Gain on sale of loans increased 41% over the prior quarter and 45% over the same quarter last year.
- Diversifying lines of business in recent years continues to pay dividends in operating results during this challenging pandemic operating environment.
- The energy, enthusiasm, and confidence of the team will continue to drive success as they focus on maturing newer and diversified lines of business to achieve financial results that create shareholder value.
Challenges Ahead
- Earnings during the first quarter of fiscal 2021 continues to be negatively impacted by an economy weakened by COVID-19.
- Earnings were negatively impacted by a lower interest rate margin due to the decrease in interest rates over the past year.
- Net interest income decreased to $25.5 million, compared to $27.1 million for the comparative quarter in fiscal 2020.
- The decrease in service charges on deposit accounts was a result of fewer transactions as customers have decreased spending during the pandemic.
- Noninterest expense increased $2.5 million, or 10.5% to $26.0 million.