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Sep 30, 2024
Hometrust Q1 2025 Earnings Report
Net income and EPS increased, driven by a decrease in the provision for credit losses and maintenance of a top-quartile net interest margin.
Key Takeaways
HomeTrust Bancshares reported a strong third quarter with increased net income and diluted earnings per share. The company maintained a top-quartile net interest margin and saw positive impacts from a decrease in the provision for credit losses.
Net income increased to $13.1 million, up from $12.4 million in the previous quarter.
Diluted earnings per share rose to $0.76, compared to $0.73 in the prior quarter.
Annualized return on assets increased to 1.17%, up from 1.13% in the previous quarter.
The Board of Directors declared a quarterly cash dividend of $0.12 per common share, a 9% increase over the previous quarter's dividend.
Hometrust
Hometrust
Forward Guidance
The company is optimistic about its financial strength and geographic diversification, which provides a foundation to overcome unforeseen events.
Positive Outlook
- Strong financial results reported for the quarter.
- Maintained top quartile net interest margin for the ninth straight quarter.
- Noninterest income and expense were in line with prior quarters.
- All banking locations are open and operating close to normal after Hurricane Helene.
- Committed to working with customers affected by Hurricane Helene to provide banking support.
Challenges Ahead
- Provision for credit losses included an additional $2.2 million as a reserve build for the potential impact of Hurricane Helene.
- Potential collectability issues from loan customers due to Hurricane Helene.
- Time needed to assess, react, and recover from Hurricane Helene for affected customers.
- Increase in nonperforming assets, particularly in the equipment finance portfolio.
- Increase in net loan charge-offs concentrated in the equipment finance portfolio.