Executive Summary

Q4 2024 delivered solid profitability with diluted EPS of $0.83, ROA 1.27%, ROE 10.32%, and net interest margin (NIM) at 4.09% while absorbing a one-time $2.965 million consulting fee tied to renewal of the largest core IT processing contract .
Credit costs swung to a benefit (-$0.855 million), driven by loan mix shifts, lower loan balances, improved macro projections, and reduced specific reserves; net charge-offs moderated quarter-over-quarter (annualized NCOs/avg loans 0.19% vs 0.42% in Q3) .
Noninterest income was stable ($8.24 million) despite lower gain-on-sale activity, aided by improved operating lease dynamics; efficiency ratio increased to 66.10% due to the consulting fee, with adjusted efficiency ratio at 59.89% .
Dividend raised to $0.12 per share (+9%), reinforcing capital strength and TBVPS growth to $29.24; Bank remained well-capitalized with equity/assets at 12.01% .
S&P Global Wall Street consensus estimates were unavailable for HTBI this quarter; no beat/miss can be quantified versus consensus (see Estimates Context section).

What Went Well and What Went Wrong

What Went Well

Maintained top-quartile margin performance: NIM held at 4.09%, marking the tenth consecutive quarter ≥4.00%; CEO highlighted tangible book value per share growth of 11% YoY and workplace awards recognition .
Credit provision benefit: Provision swung to a benefit of $0.855 million, supported by favorable loan mix changes, balance declines ($50.6 million decrease in loans), improved unemployment forecast, and reduced specific reserves .
Capital and dividend: Equity/assets improved to 12.01%; TBVPS rose to $29.24; quarterly dividend increased to $0.12 per share, payable Feb 27, 2025 .

What Went Wrong

Efficiency ratio deterioration from one-time consulting expense: Reported efficiency ratio rose to 66.10% due to a $2.965 million contract renewal consulting fee tied to core IT processing; adjusted efficiency remained at 59.89% .
Gain-on-sale softness: Gain on sale of loans fell sequentially ($1.068 million vs $1.900 million) on lower HELOC and SBA sale volumes and mortgage profitability .
Asset quality mixed: Nonperforming assets increased YoY to $28.8 million (0.63% of assets), with concentration in owner-occupied CRE and equipment finance; Hurricane Helene-related short-term deferrals totaled $136.0 million outstanding, with a retained $2.2 million qualitative ACL allocation .

Financial Results

Metric	Q2 2024	Q3 2024	Q4 2024
Diluted EPS ($)	$0.73	$0.76	$0.83
Total interest & dividend income ($mm)	$65.414	$66.649	$66.198
Net interest income ($mm)	$42.166	$42.074	$43.205
Noninterest income ($mm)	$8.113	$8.282	$8.243
Provision for credit losses ($mm)	$4.260	$2.975	($0.855)
Net interest margin (%)	4.08%	4.00%	4.09%
ROA (%)	1.13%	1.17%	1.27%
ROE (%)	9.58%	9.76%	10.32%
Efficiency ratio (%)	60.08%	60.74%	66.10%
Efficiency ratio – adjusted (%)	59.66%	60.30%	59.89%
Dividend per share ($)	$0.11	$0.11	$0.12

Segment/portfolio composition (loans, end of period):

Loan Category ($mm)	Q2 2024	Q3 2024	Q4 2024
CRE – Construction & Land Dev.	$316.050	$300.905	$274.356
CRE – Owner Occupied	$545.631	$544.689	$545.490
CRE – Non-Owner Occupied	$892.653	$881.340	$866.094
Multifamily	$92.292	$114.155	$120.425
Commercial & Industrial	$266.136	$286.809	$316.159
Equipment Finance	$461.010	$443.033	$406.400
Municipal Leases	$152.509	$158.560	$165.984
Residential – 1–4 Family	$621.196	$627.845	$630.391
Residential – HELOCs	$188.465	$194.909	$195.288
Consumer	$94.833	$83.631	$74.029
Total Loans (gross)	$3,701.454	$3,698.892	$3,648.299

KPIs (asset quality and capital):

KPI	Q2 2024	Q3 2024	Q4 2024
Nonperforming assets / total assets (%)	0.54%	0.64%	0.63%
Nonperforming loans / total loans (%)	0.68%	0.78%	0.76%
ACL / total loans (%)	1.33%	1.30%	1.24%
Allowance / nonperforming loans (%)	194.80%	166.51%	163.68%
Net charge-offs to avg loans (annualized, %)	0.27%	0.42%	0.19%
Equity / total assets (%)	11.21%	11.64%	12.01%
Tangible equity / tangible assets (%)	10.44%	10.88%	11.25%

Note: S&P Global consensus estimates for HTBI were unavailable; “vs estimates” comparisons cannot be provided this quarter.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q4 2024	$0.11	$0.12	Raised
Revenue, margins (NIM), OpEx, OI&E, tax rate	Q4 2024/FY 2024	Not provided	Not provided	Maintained “no formal guidance”
Segment-specific guidance	Q4 2024/FY 2024	Not provided	Not provided	N/A

Management did not issue formal quantitative guidance; tax rates disclosed as effective rates (22.3% Q4; 21.6% FY) rather than forward guidance .

Earnings Call Themes & Trends

Note: A Q4 2024 earnings call transcript was not available in our document set. Themes below reflect management’s press release commentary across periods.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Technology & digital initiatives	Emphasis on culture and performance; recognition as “Best Place to Work”; margin at/above 4.00%	Renewal of largest core IT processing contract; $3.0mm consulting fee; expected future cost savings and expanded technology solutions supporting growth and digital strategies	Positive investment; near-term OpEx, longer-term efficiency tailwind
Hurricane Helene impacts	Initial reserve build $2.2mm qualitative; commitment to customer deferrals up to six months	$136.0mm in outstanding deferrals; retained $2.2mm qualitative ACL allocation	Managed exposure; monitoring normalization
Credit trends (equipment finance)	Allowance builds tied to specific credits; nonperforming assets rising; cessation of transportation sector originations	NCOs concentrated in equipment finance (FY EF NCOs $6.7mm); improved quarter NCOs pace; NPLs mix detailed	Stabilizing pace; mix still a watch item
Margin & deposit costs	NIM at/above 4%; deposit costs rising, CDs expanding	NIM 4.09%; deposit interest expense down 4.7% QoQ; rate paid on interest-bearing liabilities fell to 2.94%	Incremental easing in deposit costs; margin resilient
Noninterest income (SBA/mortgage/HELOC)	Gains supported by SBA and HELOC; BOLI death benefits boosted Q1, normalized Q2	Lower gain-on-sale QoQ; lease income improved via valuation allowance reduction	Mixed: GOS softer; leases helped
Capital/regulatory	Well-capitalized status maintained	Well-capitalized; equity/assets 12.01%; TBVPS up	Strengthening capital ratios

Management Commentary

“Fiscal year 2024 ended with another quarter of strong financial results… tenth consecutive quarter with a net interest margin at or above 4.00% and have grown our tangible book value per share by 11% over the past year.” — Hunter Westbrook, President & CEO .
“During the quarter, the Bank engaged a consultant to assist in the renewal of our largest core IT processing contract, which resulted in the recognition of $3 million in consulting expense. This renewal will result both in future cost savings and the expansion of our technology solutions…” .
“We maintained our top quartile net interest margin, our ninth straight quarter at 4.00% or more… Our provision… included an additional $2.2 million as a reserve build for the potential impact of Hurricane Helene…” — Q3 release .
“Our performance remained strong, aided by the expansion of our top quartile net interest margin… The decrease in our net income… reflective of an allowance build for potential credit losses on individual equipment finance and SBA loans…” — Q2 release .

Q&A Highlights

No Q4 2024 earnings call transcript was available; therefore, Q&A specifics, guidance clarifications, and tone assessment from live Q&A cannot be provided.
Press release clarifications: management retained the $2.2 million qualitative ACL allocation for Hurricane Helene and reported $136.0 million outstanding payment deferrals; one large OO CRE relationship ($5.0 million) not expected to incur loss .
Effective tax rate context: 22.3% in Q4; FY 2024 21.6% .

Estimates Context

S&P Global consensus estimates for HTBI could not be retrieved due to a CIQ mapping issue; as a result, beat/miss versus Wall Street consensus cannot be assessed this quarter. Values retrieved from S&P Global were unavailable for HTBI due to mapping limitations.
Implication: Sell-side models may revisit OpEx trajectories (one-time consulting fee), credit normalization assumptions (equipment finance, Helene-related deferrals), and NIM resiliency given deposit cost improvements and lower borrowings .

Key Takeaways for Investors

Margin durability remains a differentiator: tenth straight quarter ≥4% NIM, with deposit costs easing QoQ—supportive for near-term NII stability .
One-time tech consulting fee obscures underlying efficiency progress; adjusted efficiency ratio stayed ~60%—monitor forward run-rate OpEx reductions from core contract renewal .
Credit normalization continues: provision benefit this quarter and slower NCO pace, but equipment finance and Helene deferrals warrant continued monitoring into 1H 2025 .
Capital and shareholder returns improving: dividend raised to $0.12; TBVPS and tangible equity/TA trending up—provides flexibility for disciplined growth and buybacks as appropriate .
Noninterest income mix: SBA premiums healthy over the year, while mortgage/HELOC gains can be rate-sensitive; operating lease income benefits from valuation allowance changes—expect variability quarter-to-quarter .
Loan mix shift continues: commercial & industrial growth, pullback in construction and equipment finance; watch CRE exposures and classified asset trends as credit cycles evolve .
With consensus unavailable, focus on internal trajectories: margin, credit, and OpEx run-rate post-renewal are likely the key stock drivers near term; medium-term thesis centers on stable NIM, improved efficiency, and controlled credit costs .

HomeTrust Bancshares, Inc. (HTBI)·Q4 2024 Earnings Summary