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Dec 31, 2023
Hometrust Q2 2024 Earnings Report
Reported preliminary net income and approved quarterly cash dividend.
Key Takeaways
HomeTrust Bancshares reported a net income of $13.5 million for the quarter ended December 31, 2023, with a net interest margin above 4.00%. The company is focusing on expense rationalization and strategic loan growth.
Net income was $13.5 million, a decrease from $14.8 million in the previous quarter.
Diluted earnings per share (EPS) was $0.79, compared to $0.88 in the previous quarter.
Net interest income was $41.9 million, slightly down from $42.2 million in the previous quarter.
The company's Board of Directors declared a quarterly cash dividend of $0.11 per common share.
Forward Guidance
HomeTrust expects annual cost savings of $800,000 from ceasing indirect auto originations and right-sizing the mortgage banking line of business. Restructuring of the BOLI portfolio is expected to contribute $1.0 million in additional noninterest income annually.
Positive Outlook
- Stabilizing funding costs are expected to improve marginal spreads.
- Strategic loan growth will continue, emphasizing the expansion of the core deposit base.
- Expense rationalization efforts are expected to result in annual cost savings.
- Restructuring the BOLI portfolio into higher-yielding policies is expected to increase noninterest income.
- Changes and strategies should help HomeTrust continue its strong financial performance.
Challenges Ahead
- Until marginal spreads become more attractive, loan growth will remain strategic.
- Decision to cease indirect auto originations and right-size mortgage banking line of business.
- Company recognized $625,000 of expense to impair the remaining right of use asset associated with a previously closed branch
Historical Earnings Impact
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Avg. Return Before/After Earnings
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