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HomeTrust Bancshares, Inc. (HTBI)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 2024 EPS was $0.73, down from $0.88 in Q1; net income fell to $12.4M as provision for credit losses increased by $3.1M, concentrated in equipment finance and SBA portfolios; net interest margin expanded to 4.08% sequentially .
  • Management highlighted strong margin (above 4.00%) and stable noninterest income/expense, but noted an allowance build tied to individually evaluated equipment finance and SBA loans undergoing collateral/collectability evaluation .
  • Dividend maintained at $0.11 per share (payable Aug 29, 2024); 23,483 shares repurchased at $27.48 average during the quarter .
  • S&P Global consensus estimates were unavailable via our data connector; public sources indicate consensus EPS was $0.73, implying an in-line quarter; revenue comparisons are inconsistent across third-party sources and are not relied upon here .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded to 4.08% from 4.02% sequentially, with net interest income up $936K QoQ; spread held at 3.28% .
  • Management reiterated a high-performance focus and culture achievements: “Our performance remained strong, aided by the expansion of our top quartile net interest margin... The decrease in our net income this quarter is reflective of an allowance build...” — Hunter Westbrook (CEO) .
  • Noninterest expense was stable QoQ (+$346K), with efficiency ratio near 60%; adjusted efficiency ratio 59.66% .

What Went Wrong

  • Provision for credit losses rose to $4.26M (from $1.17M), including a $2.0M increase in specific reserves on individually evaluated loans (equipment finance and SBA), and net charge-offs of $2.6M in the quarter .
  • Noninterest income declined by $698K QoQ, driven by the absence of $1.1M BOLI death benefit proceeds and higher losses on previously leased equipment .
  • Asset quality mixed: nonperforming assets rose to 0.54% of total assets; nonperforming loans increased to 0.68% of total loans; ACL coverage of NPLs declined to 194.8% from 235.2% QoQ .

Financial Results

Core P&L and Margins (Quarterly)

MetricQ4 2023Q1 2024Q2 2024
Net Income ($M)$13.5 $15.1 $12.4
Diluted EPS ($)$0.79 $0.88 $0.73
Net Interest Income ($M)$41.923 $41.230 $42.166
Noninterest Income ($M)$8.248 $8.811 $8.113
Provision for Credit Losses ($M)$3.360 $1.165 $4.260
Net Interest Margin (%)4.02 4.02 4.08
Efficiency Ratio (%)59.36 59.69 60.08
ROA (Annualized, %)1.21 1.37 1.13
ROE (Annualized, %)10.81 11.91 9.58

Prior-Year Period Context (Six Months)

Metric6M Ended Jun 30, 20236M Ended Jun 30, 2024
Net Income ($M)$21.747 $27.485
Diluted EPS ($)$1.30 $1.61
Net Interest Margin (%)4.43 4.05
Provision for Credit Losses ($M)$9.165 $5.425

Asset Quality KPIs

MetricDec 31, 2023Mar 31, 2024Jun 30, 2024
NPA / Total Assets (%)0.41 0.43 0.54
NPL / Total Loans (%)0.53 0.55 0.68
ACL / Total Loans (%)1.34 1.30 1.33
ACL / NPL (%)251.60 235.18 194.80
Net Charge-offs to Avg Loans (Annualized, %)0.29 0.24 0.27

Balance Sheet Highlights

MetricDec 31, 2023Mar 31, 2024Jun 30, 2024
Total Assets ($B)$4.673 $4.684 $4.671
Total Deposits ($B)$3.661 $3.800 $3.708
Total Loans ($B)$3.640 $3.648 $3.701
Borrowings ($B)$0.434 $0.292 $0.365
Stockholders’ Equity ($B)$0.500 $0.513 $0.524

Loan Portfolio Mix (Selected)

Category ($M)Dec 31, 2023Mar 31, 2024Jun 30, 2024
Commercial RE – NOO$875.694 $881.143 $892.653
Equipment Finance$465.573 $462.649 $461.010
SBA (Guaranteed sales disclosed in NI)———
HELOCs$185.878 $184.274 $188.465
1–4 Family$584.405 $605.570 $621.196

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Formal financial guidanceFY/QuarterNone providedNone providedMaintained (no guidance)
Dividend per shareQ2 2024$0.11 (Q1 2024) $0.11 (Payable 8/29/24) Maintained

Earnings Call Themes & Trends

Note: No public Q2 2024 earnings call transcript was available in our document catalog or investor site; themes are drawn from management commentary in press releases.

TopicPrevious Mentions (Q4 2023 and Q1 2024)Current Period (Q2 2024)Trend
Net interest margin resilienceMaintained above 4.00%; prudent balance sheet; optimism on stabilizing funding costs Expanded to 4.08%; top quartile margin reiterated Improving
Credit costs in equipment finance/SBAElevated charge-offs; ceased indirect auto originations; right-sized mortgage banking; transportation sector equipment finance originations ceased in Q1 2024 Provision increased; specific reserves up in equipment finance/SBA; early-stage collateral evaluation Pressured
Deposits/core fundingQ1: customer deposits +$100M; focus on core expansion Deposits down sequentially; core mix stable; CDs up QoQ Mixed
BOLI incomeQ4/Q1 benefited from tax-free death benefits ($1.6M; $1.1M) No death benefits recognized; BOLI income lower Normalizing lower
Expense discipline/efficiencyEfficiency ~59–60%; targeted cost rationalization Efficiency ~60%; adjusted 59.66% Stable
Culture/recognitionEmphasis on “Best Place to Work” and national rankings Named 2024 Best Place to Work in South Carolina; Most Loved Workplace Positive

Management Commentary

  • “Our financial results for the second quarter continue to reflect our goal of high performance... net interest margin... again above 4.00%... decrease in our net income... reflective of an allowance build for potential credit losses on individual equipment finance and SBA loans...” — C. Hunter Westbrook, CEO .
  • Q1 2024: Focus on strengthening balance sheet, expanding customer deposits by over $100M, maintaining NIM above 4.00%, and strong credit quality; re-authorization to repurchase remaining 266,639 shares under prior buyback plan .
  • Q4 2023: Strategic changes to cease indirect auto originations and right-size mortgage banking; expected annual cost savings of ~$0.8M and ~$1.0M incremental BOLI income from portfolio restructuring .

Q&A Highlights

  • No earnings call transcript identified for Q2 2024; no Q&A available in public documents. We rely on press release disclosures and quantitative tables for analysis .

Estimates Context

  • S&P Global consensus estimates were unavailable via our connector for HTBI (CIQ mapping error). Values from S&P Global could not be retrieved; if available, they would be used as the benchmark.
  • Alternative public source indicates consensus EPS for Q2 2024 was $0.73, with actual EPS of $0.73 — in line; revenue estimates are inconsistent across third-party sites for banks and are not used here .
  • Implication: No material EPS surprise; estimate revisions likely hinge on credit cost trajectory and NIM sustainability rather than top-line variance.

Key Takeaways for Investors

  • Sequential NIM expansion and steady net interest income underscore core earnings durability; however, credit costs tied to equipment finance/SBA are the swing factor for near-term EPS variability .
  • Asset quality metrics deteriorated modestly (higher NPAs/NPLs; lower ACL coverage to NPLs); watch management’s continued runoff/containment in transportation-related equipment finance and outcomes of individually evaluated loans .
  • Fee lines were resilient ex-BOLI; mortgage/SBA/HELOC sales contributed gains, but BOLI death benefits normalized — a headwind vs Q1 .
  • Capital remains solid; equity increased to $523.6M; dividend maintained; limited buybacks executed; balance sheet nimbleness provides flexibility .
  • Near-term trading: stock likely reacts to updates on credit resolution and forward margin commentary; a stable/declining provision could be a positive catalyst, while further reserve builds or NPL migration would pressure multiples.
  • Medium-term thesis: sustained top-quartile NIM, disciplined expenses, and cultural/market recognition support profitability; credit normalization and consistent core deposit growth are key to re-rating toward peers.

Appendix: Additional Press Release (Q2 Window)

  • HomeTrust Bank named a 2024 Best Place to Work in South Carolina (July 3, 2024), reinforcing culture/corporate recognition initiatives .