Kevin M. Nunley
About Kevin M. Nunley
Kevin M. Nunley, age 50, is Executive Vice President and Chief Credit Officer (CCO) of HomeTrust Bank, serving in the role since July 2024 after joining the bank in September 2020 and progressing through Director of Loan Review and Director of Commercial Credit roles . He holds a BBA from the University of Tennessee and an MBA from Wake Forest University’s Babcock Graduate School of Business . Company performance in FY2024 included net income of $54.8M (vs. $50.0M in 2023), diluted EPS of $3.20 (vs. $2.97), ROAA of 1.23% (vs. 1.17%), and ROAE of 10.37% (vs. 10.62%), anchoring incentive programs to disciplined profitability and efficiency metrics . HTB’s compensation framework embeds a clawback policy, prohibitions on hedging/pledging, and stock ownership guidelines for executives, aligning leadership incentives with long-term value creation .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| HomeTrust Bank | EVP & Chief Credit Officer | Since Jul 2024 | Leads enterprise credit risk framework supporting growth and asset quality |
| HomeTrust Bank | Director of Commercial Credit | Jun 2023–Jul 2024 | Oversaw commercial credit underwriting and portfolio management standards |
| HomeTrust Bank | Sr. VP & Director of Loan Review | Sep 2020–Jun 2023 | Strengthened independent credit review and risk surveillance |
| First Tennessee Bank / First Horizon Bank | Senior credit officer, portfolio management, relationship management | Not disclosed | Large regional bank credit leadership; portfolio risk governance |
| Wachovia | Relationship manager | Not disclosed | Business development and credit oversight in corporate banking |
| Bayer | Financial analyst | Not disclosed | Analytical foundation supporting financial decision-making |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| None disclosed | — | — | — |
Fixed Compensation
| Component | Terms |
|---|---|
| Target annual cash incentive (Calendar 2025) | 30% of base salary for Kevin Nunley (CCO) |
| Base salary | Not disclosed for Nunley (merit-based increases were disclosed for NEOs only) |
Performance Compensation
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| HTBI Adjusted Pre‑Tax, Pre‑Provision Earnings (corporate) | 100% for Nunley (Calendar 2025 plan) | Not disclosed | Not disclosed | Not disclosed | Cash STIP; subject to clawback |
| Equity awards (RSU/PSU constructs, company-wide policy) | Not specifically disclosed for Nunley | — | — | — | Company grants under 2022 Omnibus Plan; clawback applies |
The Senior Leadership Incentive Plan has threshold/target/stretch payouts (50%/100%/150% of target) with committee discretion and clawback in case of restatement . 2024 PSUs for NEOs were tied to three‑year PTPP income/average assets vs peer index with 25%–150% payout slope; similar structures evidence alignment but specific Nunley PSU grants are not disclosed .
Equity Ownership & Alignment
| Ownership Detail | Amount |
|---|---|
| Direct common shares | 2,237, including 2,114 unvested RS as of Form 3 filing on 07/02/2024 |
| Indirect common shares (KSOP) | 736 |
| Total beneficial ownership | 2,973 (direct + indirect) |
| Options (exercisable/unexercisable) | None disclosed for Nunley in Form 3 |
| Hedging/Pledging | Prohibited for executive officers |
| Stock ownership guideline | 1× base salary for executive officers; 5‑year compliance window; retain 50% of vested full‑value shares if not yet compliant |
| Compliance status | Company states all directors/executives either met or were progressing as of 12/31/2024 (individual detail not provided) |
Employment Terms
| Provision | Detail |
|---|---|
| Change‑in‑Control (CIC) Severance Agreement | Executed July 1, 2024 for Kevin Nunley (EX‑10.20) ; also referenced among exhibits in 10‑Q |
| CIC trigger mechanics | Company uses “double‑trigger” severance for executives—benefits payable only upon CIC plus qualifying termination |
| Cash Compensation definition (CIC agreement) | Highest annual base salary plus higher of prior year annual bonus paid or current year target bonus; includes deferred salary/bonus |
| Clawback | Mandatory clawback policy adopted Nov 7, 2023; SLIP/long‑term awards subject to recovery upon restatement and misconduct |
| Tax gross‑ups | No golden‑parachute excise tax gross‑ups |
| Equity plan governance | 2022 Omnibus Incentive Plan; no repricing/exchanges of underwater options without shareholder approval |
| Ownership/transfer limits | No hedging or pledging of Company securities; retention requirements if under guideline |
Performance & Track Record
| Indicator (FY2024 vs FY2023) | FY2024 | FY2023 |
|---|---|---|
| Net income ($M) | 54.8 | 50.0 |
| Diluted EPS ($) | 3.20 | 2.97 |
| ROAA (%) | 1.23 | 1.17 |
| ROAE (%) | 10.37 | 10.62 |
| Net interest margin (%) | 4.05 | 4.22 |
| Provision for credit losses ($M) | 7.5 | 15.1 |
| Cash dividends ($/share; $M total) | $0.45; $7.7 | $0.41; $6.9 |
Leadership refresh highlighted Nunley’s elevation to CCO within an experienced executive team and board, reinforcing asset quality and credit discipline in high‑growth Southeast markets .
Risk Indicators & Red Flags
- Clawback and ethics provisions explicitly address manipulation of performance results; incentive awards can be revoked/repayments required upon misconduct or restatement .
- No hedging or pledging permitted; stock option repricing prohibited without shareholder approval—reduces misalignment and governance risk .
- CIC arrangements are double‑trigger—mitigates windfalls absent job loss while supporting retention through M&A cycles .
Compensation Peer Group, Say‑on‑Pay, Governance (Company-level context)
- Say‑on‑pay approval ~97% in May 2024, indicating broad shareholder support for compensation design .
- Executive base salaries targeted around 50th percentile of market; merit adjustments implemented in Aug 2024 (NEO detail; Nunley not disclosed) .
- Majority independent board with committee structures and ownership guidelines to align incentives .
Investment Implications
- Alignment: Nunley’s 2025 cash incentive is fully tied to adjusted pre‑tax, pre‑provision earnings (100% weight), reinforcing disciplined credit profitability—critical for a CCO in a rising‑growth footprint .
- Retention: A July 1, 2024 CIC agreement with double‑trigger mechanics and defined cash compensation underpin retention through strategic events, reducing transition risk in credit oversight .
- Selling pressure: Ownership guidelines and prohibition on hedging/pledging, plus Form 3 showing significant unvested RS, suggest constrained insider selling and continued equity alignment near term .
- Execution risk: Credit discipline remains central; 2024 provision reduction and sustained ROAA/ROAE point to stable underwriting and portfolio management during Nunley’s leadership transition, an incremental positive for risk‑adjusted growth .