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HomeTrust Bancshares, Inc. (HTB)·Q2 2025 Earnings Summary

Executive Summary

  • EPS of $1.00 beat S&P Global consensus of $0.77 by ~$0.23; revenue of ~$$53.08M beat consensus ~$$50.62M, driven by net interest margin expansion to 4.32% and a $1.4M gain on branch sale .*
  • Operating leverage improved as the efficiency ratio fell to 57.47% from 60.79% in Q1, with net interest income up $1.3M and noninterest income up $2.1M .
  • Asset quality mixed: NPAs rose to 0.67% of assets and classified assets to 1.07% of assets, with equipment finance and owner-occupied CRE driving increases; ACL/loans held at 1.20% .
  • Capital returns continued: $0.12 dividend declared (payable Aug 28) and 78,412 shares repurchased at $35.74; deposit mix optimized with brokered CDs reduced and exit from two Knoxville branches creating a $1.4M gain .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded to 4.32% (4.37% TE) as deposit costs fell across categories, boosting net interest income by $1.3M QoQ .
  • Noninterest income rose 27% QoQ to $10.2M, supported by SBA guaranteed sales gains ($570K), HELOC sales gains ($954K), and residential mortgage gains ($558K), plus a $1.4M branch sale gain .
  • Management emphasized disciplined balance sheet management and culture as performance drivers: “Our earnings story... primarily been driven by our top quartile net interest margin... and our ability to limit growth in our expense base” — C. Hunter Westbrook, CEO .

What Went Wrong

  • Asset quality pressure: NPAs increased to 0.67% of assets (from 0.61%), NPL ratio to 0.81% (from 0.74%), and classified assets to 1.07% of assets (from 0.85%) QoQ, with equipment finance (transportation) and CRE exposures highlighted .
  • Provision for credit losses was $1.3M (though down vs Q1), including a $1.3M increase in specific reserves on individually evaluated loans; net charge-offs rose to $2.0M in the quarter .
  • Deposits declined by $70.2M QoQ (to $3.67B), reflecting $34.3M transferred with branch sale and $96.5M brokered deposit reduction; borrowings increased by $88.0M to support liquidity .

Financial Results

EPS and Revenue vs Prior Periods and Estimates (S&P Global definitions)

MetricQ2 2024Q1 2025Q2 2025
Diluted EPS ($)$0.73*$0.84 $1.00
Revenue ($USD)$46.56M*$49.39M*$53.08M*

Notes: Values marked with * retrieved from S&P Global.

Actual Components vs Prior Quarter

MetricQ1 2025Q2 2025
Net Interest Income ($USD)$42.91M $44.23M
Total Noninterest Income ($USD)$8.03M $10.16M
Provision for Credit Losses ($USD)$1.54M $1.30M
Efficiency Ratio (%)60.79% 57.47%
Net Interest Margin (%)4.18% 4.32%
ROA (annualized) (%)1.33% 1.58%
ROE (annualized) (%)10.52% 11.97%

Segment/Portfolio Breakdown (Loans, period-end)

Category ($USD thousands)Q1 2025Q2 2025
Total Loans3,648,609 3,671,951
Equipment Finance380,166 360,499
Commercial & Industrial349,085 367,359
Owner-Occupied CRE570,150 561,623
Non-Owner Occupied CRE867,711 877,440
HELOCs199,747 205,918
One-to-Four Family631,537 640,287

KPIs and Asset Quality

KPIQ1 2025Q2 2025
Deposits ($USD thousands)3,736,360 3,666,178
Core Deposits ($USD thousands)2,837,916 2,764,109
Certificates of Deposit ($USD thousands)898,444 902,069
Borrowings ($USD thousands)177,000 265,000
NPAs / Assets (%)0.61% 0.67%
NPLs / Loans (%)0.74% 0.81%
Classified Assets / Assets (%)0.85% 1.07%
ACL / Loans (%)1.23% 1.20%
Net Charge-offs / Avg Loans (annualized) (%)0.14% 0.21%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quarterly DividendQ3 2025 payable Aug 28$0.12/share (Q1 2025) $0.12/share; record Aug 14, payable Aug 28 Maintained
Quantitative Financial GuidanceFY/Q3None disclosedNone disclosedMaintained (no formal guidance)

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was found in the document set; theme tracking is derived from company press releases.

TopicPrevious Mentions (Q-2: Q4 2024)Previous Mentions (Q-1: Q1 2025)Current Period (Q2 2025)Trend
Net interest margin disciplineFocus on asset yields and funding cost management (contract renewal reduced vendor fees) NIM expanded to 4.18%; funding costs declined NIM expanded to 4.32%; deposit costs declined across categories Improving
Deposit mix optimizationBrokered CDs reduction and paydown of borrowings Deposits up QoQ, brokered CDs reduced Deposits down QoQ; brokered CDs reduced; branch sale transferred $34.3M deposits Mixed (strategic optimization; headline decline)
Branch footprintPreparing for Knoxville exit Announced sale of two Knoxville branches Sale completed; $1.4M gain recognized Executed
Asset quality monitoringClassified assets 1.06%; NPLs 0.76% NPAs 0.61%; NPLs 0.74% NPAs 0.67%; NPLs 0.81%; classified assets 1.07% Slight deterioration
Hurricane Helene impactRetained $2.2M qualitative ACL allocation Deferrals declining; allocation retained $2.2M qualitative ACL released; minimal storm-related charge-offs ($27K YTD) Risk receding

Management Commentary

  • “Our earnings story over recent quarters has primarily been driven by our top quartile net interest margin, which expanded to 4.32% this quarter, and our ability to limit growth in our expense base.” — C. Hunter Westbrook, President & CEO .
  • “This transaction [Knoxville branch sale] reflects our efforts to tighten our geographic footprint, improve our branch efficiencies, and allow us to better allocate capital to support long-term growth in other core markets.” — C. Hunter Westbrook .

Q&A Highlights

No Q2 2025 earnings call transcript was available in the document set; Q&A highlights and any guidance clarifications could not be assessed.

Estimates Context

  • EPS: $1.00 versus S&P Global consensus $0.772 — strong beat; magnitude supported by NIM expansion and lower interest expense, plus noninterest income uplift from SBA/HELOC/residential loan sales and branch sale gain .*
  • Revenue: ~$$53.08M versus S&P Global consensus ~$$50.62M — beat likely reflects operating revenue uplift; internal components show net interest income $44.23M and noninterest income $10.16M .*
  • Prior periods: Q1 2025 EPS $0.84 vs consensus $0.76 (beat); revenue ~$49.39M vs ~$49.76M (slight miss). Prior-year Q2 2024 EPS $0.73 vs ~$0.73 in consensus; revenue ~$46.56M vs ~$48.69M (miss).*

Notes: Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Margin-led earnings strength: With NIM at 4.32% and deposit costs falling, HTB is executing well on spread management amid a cautious loan growth stance .
  • Operating leverage improving: Efficiency ratio fell to 57.47% and computer services expense declined post core processing renewal; expect continued discipline on OpEx .
  • Revenue upside from fee levers: SBA, HELOC, and residential mortgage sale gains materially supported noninterest income; sustainability hinges on market demand and pipeline management .
  • Strategic footprint optimization: Knoxville exit completed with $1.4M gain; watch redeployment into core markets and deposit mix trajectory post brokered CD reduction .
  • Asset quality watch items: NPAs and classified assets ticked up, with equipment finance (transportation) and owner-occupied CRE concentrations noted; ACL remains robust at 1.20% of loans .
  • Capital returns steady: Dividend maintained at $0.12/share and buybacks continued; tangible equity/tangible assets improved to 11.91% .
  • Near-term trading catalyst: The combination of an EPS and revenue beat, margin expansion, and cleaner expense trend is a positive setup; monitor any follow-on disclosures on credit migration and deposit flows for durability of the narrative .
Disclosures: S&P Global consensus and actual revenue/EPS values are marked with * and were retrieved from S&P Global.

Document Sources Read

  • Q2 2025 8-K and attached press release with full financials and disclosures –.
  • Q2 2025 standalone press release (duplicate of Exhibit 99.1 content) –.
  • Q1 2025 press release for prior-quarter comparisons and Q4 2024 references –.
  • Q2 2025 8-K notice of upcoming earnings release .