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HomeTrust Bancshares, Inc. (HTBI)·Q1 2024 Earnings Summary

Executive Summary

  • Q1 2024 delivered solid profitability with net income of $15.1M and diluted EPS of $0.88; net interest margin held at 4.02% and ROA/ROE were 1.37%/11.91% .
  • Against Street expectations, HTBI posted an EPS beat and a revenue beat: EPS $0.88 vs $0.70 consensus, and total revenue $50.04M vs $47.66M consensus; the press release breakdown reconciles revenue as net interest income plus noninterest income (41.23 + 8.81 ≈ $50.04M) .
  • Quarter-over-quarter improvements were driven by a lower provision for credit losses ($1.2M vs $3.4M prior quarter) and higher noninterest income (+$563K), partially offset by lower net interest income (-$693K) .
  • Strategic actions: re-authorization to repurchase the remaining 266,639 shares under the 2022 plan and continuation of the $0.11 quarterly dividend—key capital return catalysts .
  • Credit remained strong but equipment finance continued to drive nonperformers; management ceased originations in the transportation sector of equipment finance loans during the quarter, reducing future risk .

What Went Well and What Went Wrong

What Went Well

  • Deposit expansion and margin resilience: “expansion of customer deposits by over $100 million, maintaining our net interest margin above 4.00% and continuing our strong credit quality” (CEO) .
  • EPS and revenue beats vs consensus, with total revenue of $50.04M and EPS of $0.88 (MarketBeat), supported by strong SBA loan sale gains ($1.1M on $12.9M sold) and improved hedging results .
  • Provision declined meaningfully to $1.2M, aided by favorable macro/unemployment inputs and qualitative adjustments, with net charge-offs improving QoQ ($2.3M vs $2.8M) .

What Went Wrong

  • Net interest income declined $693K QoQ as deposit costs rose (rate paid on interest-bearing liabilities increased to 2.90% from 2.74%), offsetting higher interest income on other assets .
  • Nonperforming assets rose to $20.2M (0.43% of assets) vs $19.3M, driven by equipment finance (over-the-road trucks) and select exposures; NPL/loans increased to 0.55% from 0.53% .
  • BOLI income decreased due to lower tax-free death benefit proceeds ($1.1M current vs $1.6M prior quarter), creating a headwind within noninterest income .

Financial Results

Metric ($USD Millions unless noted)Q3 2023 (oldest)Q4 2023Q1 2024 (newest)
Total interest & dividend income$61.865 $62.819 $63.355
Total interest expense$19.705 $20.896 $22.125
Net interest income$42.160 $41.923 $41.230
Provision for credit losses$2.570 $3.360 $1.165
Noninterest income$8.627 $8.248 $8.811
Noninterest expense$29.564 $29.781 $29.864
Net income$14.833 $13.464 $15.067
Diluted EPS ($)$0.88 $0.79 $0.88
Net interest margin (%)4.02% 4.02% 4.02%
ROA (%)1.33% 1.21% 1.37%
ROE (%)12.23% 10.81% 11.91%
Efficiency ratio (%)58.21% 59.36% 59.69%

Segment/Portfolio Breakdown – Loans

Loans ($USD Thousands)Sep 30, 2023 (oldest)Dec 31, 2023Mar 31, 2024 (newest)
CRE – Construction & land dev.$352,143 $305,269 $304,727
CRE – Owner occupied$526,534 $536,545 $532,547
CRE – Non-owner occupied$880,348 $875,694 $881,143
Multifamily$83,430 $88,623 $89,692
Commercial & industrial$237,366 $237,255 $243,732
Equipment finance$470,387 $465,573 $462,649
Municipal leases$147,821 $150,292 $151,894
Residential construction & land dev.$103,381 $96,646 $85,840
One-to-four family$560,399 $584,405 $605,570
HELOCs$185,289 $185,878 $184,274
Consumer$112,816 $113,842 $106,084
Total loans$3,659,914 $3,640,022 $3,648,152

Deposits Composition

Deposits ($USD Thousands)Sep 30, 2023 (oldest)Dec 31, 2023Mar 31, 2024 (newest)
Noninterest-bearing$827,362 $784,950 $773,901
NOW accounts$602,804 $591,270 $600,561
Money market$1,195,482 $1,246,807 $1,308,467
Savings$202,971 $194,486 $191,302
Core deposits$2,828,619 $2,817,513 $2,874,231
Certificates of deposit$812,342 $843,860 $925,576
Total deposits$3,640,961 $3,661,373 $3,799,807

KPIs – Asset Quality and Capital

KPIQ3 2023 (oldest)Q4 2023Q1 2024 (newest)
NPA / Assets (%)0.25% 0.41% 0.43%
NPL / Loans (%)0.32% 0.53% 0.55%
ACL / Loans (%)1.30% 1.34% 1.30%
Net charge-offs / Avg loans (annualized)0.27% 0.29% 0.24%
Equity / Assets (%)10.41% 10.70% 10.96%
Tangible equity / tangible assets (%)9.60% 9.91% 10.18%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quarterly dividend per shareOngoing$0.11 (Q4 2023) $0.11 (Q1 2024) Maintained
Share repurchase authorizationOngoingPlan authorized Feb 2022; remaining shares outstanding Re-authorized to repurchase remaining 266,639 shares Re-authorized
Tax rate, revenue, margins, OpExOngoingNo formal guidance providedNo formal guidance providedN/A

Earnings Call Themes & Trends

Note: A Q1 2024 earnings call transcript was not available in our document catalog; we relied on management commentary across recent press releases.

TopicPrevious Mentions (Q-2: Q3 2023)Previous Mentions (Q-1: Q4 2023)Current Period (Q1 2024)Trend
Net interest marginTop quartile; NIM 4.02% with prudent balance sheet management NIM 4.02%; funding costs stabilizing NIM 4.02%; margin maintained above 4% Stable, resilient
Deposits/core fundingDeposits grew $39.8M; uninsured deposits detailed Deposits up $20.4M QoQ; brokered deposits 9.7% Deposits $3.80B; >$100M expansion emphasized Improving core and CDs
Credit quality/charge-offsCharge-offs concentrated in equipment finance & SBA; NPL increased modestly Continued concentration; NPL/loans up to 0.53% NPL/loans 0.55%; ceased transportation sector originations in equipment finance Proactive risk mitigation
BOLI income$1.1M tax-free death benefit proceeds $1.6M tax-free death benefit proceeds; portfolio restructuring $1.1M tax-free death benefit proceeds; lower QoQ Volatile, one-off driven
Capital returnDividend increased to $0.11 Dividend maintained; fiscal year change noted Dividend maintained; buyback re-authorization Consistent returns

Management Commentary

  • “Continuation of HomeTrust’s top quartile financial performance… expansion of customer deposits by over $100 million, maintaining our net interest margin above 4.00% and continuing our strong credit quality.” — Hunter Westbrook, President & CEO .
  • “This action allows the Company to take advantage of its low stock price as compared to its tangible book value while also publicly exhibiting our optimism regarding the Company’s future financial performance.” — on buyback re-authorization .
  • “As part of our internal focus on expense rationalization, we… cease indirect auto originations and right-size our mortgage banking… expected to result in annual cost savings of $800,000.” — Prior quarter structural actions .

Q&A Highlights

  • A Q1 2024 earnings call transcript was not available via our filings/documents catalog; therefore, specific Q&A themes and management responses cannot be verified for this period [No transcript found via ListDocuments for earnings-call-transcript].

Estimates Context

  • Consensus EPS: $0.70; Actual EPS: $0.88 — Beat by $0.18 .
  • Consensus Revenue: $47.66M; Actual Revenue: $50.04M — Beat by $2.38M (press release components: net interest income $41.23M and noninterest income $8.81M) .
  • S&P Global consensus was unavailable due to CIQ mapping constraints; MarketBeat data used as a secondary source .

Key Takeaways for Investors

  • Margin durability: Maintaining a 4.02% NIM despite rising deposit costs signals robust asset yield management and pricing discipline .
  • Credit containment: Lower provision and proactive cessation of transportation-sector equipment finance originations reduce forward loss risk; NCOs improved QoQ .
  • Revenue drivers: Strong SBA sale gains and better hedge results supported noninterest income; this diversified revenue contribution can underpin earnings in a flat NIM environment .
  • Capital returns: Re-authorized buyback and steady dividend provide downside support and optionality given tangible book valuation commentary .
  • Deposit momentum: Core and CD growth lifted total deposits to $3.80B, enhancing funding and liquidity flexibility for 2024 .
  • Asset quality watchlist: NPLs and NPAs edged up, concentrated in equipment finance; monitor trajectory as origination changes flow through .
  • Estimate revisions: With beats on EPS and revenue, Street models may need to reflect lower provisioning and steadier NIM, while factoring deposit cost pressures and noninterest income cadence .