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Jun 30, 2021
Hometrust Q4 2021 Earnings Report
Announced a preliminary net loss due to expenses related to branch closures and balance sheet restructuring, including a prepayment penalty on long-term borrowings.
Key Takeaways
HomeTrust Bancshares, Inc. reported a net loss for Q4 2021, driven by branch closure expenses and balance sheet restructuring costs, including a $19.0 million pre-tax prepayment penalty. Excluding these charges, adjusted net income was $8.3 million, up from $3.6 million in the same quarter last year.
Net loss was $7.4 million, compared to net income of $3.6 million in the same quarter last year.
Diluted loss per share was ($0.46), compared to earnings per share of $0.22 last year.
Noninterest income increased $4.0 million, or 54.5% to $11.2 million.
Adjusted net income was $8.3 million, compared to $3.6 million in the same quarter last year.
Hometrust
Hometrust
Forward Guidance
HomeTrust Bancshares is focusing on strategic initiatives to enhance profitability by reducing ongoing costs and increasing revenues across all lines of business.
Positive Outlook
- Successful transition of SBA servicing operations to in-house to increase gain on sale and create servicing income.
- Continued focus on increasing SBA loan origination volume to leverage investment and increase profitability.
- Mortgage area produced another strong quarter with the sale of $106 million in residential mortgages.
- Equipment finance division had another strong year; the portfolio grew $89 million to $340 million.
- Credit quality continues to hold up nicely.
Challenges Ahead
- The company faced challenges during the pandemic.
- GAAP net income includes a $14.6 million after-tax prepayment penalty.
- GAAP net income includes $1.2 million of after-tax costs associated with the plan to close nine branches.
- Net interest margin decreased to 3.04% from 3.17% in prior year.
- Nonperforming assets decreased by $3.5 million, or 21.3% to $12.8 million