HomeTrust Bancshares Files Q2 2024 10-Q

Ticker: HTB · Form: 10-Q · Filed: Aug 9, 2024 · CIK: 1538263

Sentiment: neutral

Topics: 10-Q, financials, quarterly-report

TL;DR

HTBI 10-Q filed: Q2 2024 financials are in. Check it out.

AI Summary

HomeTrust Bancshares, Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter of 2024, detailing financial performance and operational updates. Key financial data and disclosures relevant to investors and stakeholders are presented in this report.

Why It Matters

This filing provides crucial financial details for HomeTrust Bancshares, Inc., allowing investors to assess the company's performance and make informed decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is the quarter ended June 30, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed on August 9, 2024.

What is the Central Index Key (CIK) for HomeTrust Bancshares, Inc.?

The Central Index Key for HomeTrust Bancshares, Inc. is 0001538263.

What is the fiscal year end for HomeTrust Bancshares, Inc.?

The fiscal year end for HomeTrust Bancshares, Inc. is December 31.

What is the Standard Industrial Classification (SIC) code for HomeTrust Bancshares, Inc.?

The Standard Industrial Classification code for HomeTrust Bancshares, Inc. is 6035, which corresponds to Savings Institution, Federally Chartered.

Filing Stats: 4,783 words · 19 min read · ~16 pages · Grade level 20 · Accepted 2024-08-09 16:31:18

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1 Financial Statements Consolidated Balance Sheets at Jun e 30 , 2024 (Unaudited) and December 31, 2023 3 Consolidated Statements of Income (Unaudited) for the Three and Six Months Ended June 30 , 2024 and 2023 4 Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Six Months Ended June 30 , 2024 and 2023 5 Consolidated Statements of Changes in Stockholders' Equity (Unaudited) for the Three and Six Months Ended June 30 , 2024 and 2023 6 Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30 , 2024 and 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures about Market Risk

Item 3 Quantitative and Qualitative Disclosures about Market Risk 44

Controls and Procedures

Item 4 Controls and Procedures 44

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1 Legal Proceedings 45

Risk Factors

Item 1A Risk Factors 45

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 45

Defaults Upon Senior Securities

Item 3 Defaults Upon Senior Securities 45

Mine Safety Disclosures

Item 4 Mine Safety Disclosures 45

Other Information

Item 5 Other Information 45

SIGNATURES

SIGNATURES 48 1 Glossary of Defined Terms The following terms may be used throughout this Form 10-Q, including the Notes to Consolidated Financial Statements in Item 1 and Management's Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of this Form 10-Q. Term Definition ACL Allowance for Credit Losses AFS Available-For-Sale ASC Accounting Standards Codification ASU Accounting Standards Update BOLI Bank Owned Life Insurance CD Certificate of Deposit CDA Collateral Dependent Asset CECL Current Expected Credit Losses CET1 Common Equity Tier 1 COVID-19 Coronavirus Disease 2019 DCF Discounted Cash Flows Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act ECL Expected Credit Losses EPS Earnings Per Share ESOP Employee Stock Ownership Plan FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation Federal Reserve Board of Governors of the Federal Reserve System FHLB or FHLB of Atlanta Federal Home Loan Bank FRB Federal Reserve Bank of Richmond GSE Government-Sponsored Enterprises HELOC Home Equity Line of Credit IRLC Interest Rate Lock Commitments MBS Mortgage-Backed Security NCCOB North Carolina Office of the Commissioner of Banks OREO Other Real Estate Owned PCD Purchased Financial Assets with Credit Deterioration Quantum Quantum Capital Corp. and its wholly owned subsidiary, Quantum National Bank ROA Return on Assets ROE Return on Equity ROU Right of Use RSU Restricted Stock Unit SBA U.S. Small Business Administration SBIC Small Business Investment Companies SEC Securities and Exchange Commission SOFR Secured Overnight Financing Rate TBA To-be-announced US GAAP Generally Accepted Accounting Principles in the United States 2

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements HOMETRUST BANCSHARES, INC. AND SUBSIDIARY Consolidated Balance Sheets (Dollars in thousands, except per share data) (Unaudited) June 30, 2024 December 31, 2023 Assets Cash $ 18,382 $ 18,307 Interest-bearing deposits 275,808 328,833 Cash and cash equivalents 294,190 347,140 Certificates of deposit in other banks 32,131 34,722 Debt securities available for sale, at fair value (amortized cost of $ 137,212 and $ 128,964 at June 30, 2024 and December 31, 2023, respectively) 134,135 126,950 FHLB and FRB stock 19,637 18,393 SBIC investments, at cost 15,462 13,789 Loans held for sale, at fair value 1,614 3,359 Loans held for sale, at the lower of cost or fair value 224,976 198,433 Loans, net of deferred loan fees and costs 3,701,454 3,640,022 Allowance for credit losses – loans ( 49,223 ) ( 48,641 ) Loans, net 3,652,231 3,591,381 Premises and equipment, net 69,880 70,937 Accrued interest receivable 18,412 16,902 Deferred income taxes, net 10,512 11,796 BOLI 89,176 88,257 Goodwill 34,111 34,111 Core deposit intangibles, net 7,730 9,059 Other assets 66,667 107,404 Total assets $ 4,670,864 $ 4,672,633 Liabilities and stockholders' equity Liabilities Deposits $ 3,707,779 $ 3,661,373 Junior subordinated debt 10,070 10,021 Borrowings 364,513 433,763 Other liabilities 64,874 67,583 Total liabilities 4,147,236 4,172,740 Commitments and contingencies – See Note 12 Stockholders' equity Preferred stock, $ 0.01 par value, 10,000,000 shares authorized, none issued or outstanding — — Common stock, $ 0.01 par value, 60,000,000 shares authorized, 17,437,326 shares issued and outstanding at June 30, 2024; 17,387,069 at December 31, 2023 175 174 Additional paid in capital 172,907 172,366 Retained earnings 357,147 333,401 Unearned ESOP shares ( 4,232 ) ( 4,497 ) Accumulated other comprehensive loss ( 2,369 ) ( 1,551 ) Total stockholders' equity 523,628 499,893 Total liabilities and stockholders' equity $ 4,670,864

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Dollars in thousands, except per share data) 1. Summary of Significant Accounting Policies The consolidated unaudited financial statements presented in this report include the accounts of HomeTrust Bancshares, Inc., a Maryland corporation ("HomeTrust"), and its wholly-owned subsidiary, HomeTrust Bank (the "Bank"). As used throughout this report, the term the "Company" refers to HomeTrust and its consolidated subsidiary, unless the context otherwise requires. HomeTrust is a bank holding company primarily engaged in the business of planning, directing and coordinating the business activities of the Bank. The Bank is a North Carolina state chartered bank and provides a wide range of retail and commercial banking products within its geographic footprint, which includes: North Carolina (the Asheville metropolitan area, the "Piedmont" region, Charlotte and Raleigh/Cary), South Carolina (Greenville and Charleston), East Tennessee (Kingsport/Johnson City, Knoxville and Morristown), Southwest Virginia (the Roanoke Valley) and Georgia (Greater Atlanta). The Bank operates under a single set of corporate policies and procedures and is recognized as a single banking segment for financial reporting purposes. As a result of its merger with Quantum on February 12, 2023, HomeTrust became the 100 % successor owner of the Quantum Capital Statutory Trust II Delaware trust. The sole assets of the trust represent the proceeds of offerings loaned in exchange for subordinated debentures with similar terms to the trust preferred securities. The accompanying unaudited consolidated financial statements have been prepared in accordance with US GAAP for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the SEC. Accordingly, they do not include all the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, al

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Dollars in thousands, except per share data) 3. Merger with Quantum On February 12, 2023, the Company merged with Quantum which operated two locations in the Atlanta metro area. The aggregate amount of consideration to be paid per the purchase agreement of approximately $ 70,771 , inclusive of consideration of common stock, other cash consideration, and cash in lieu of fractional shares, included $ 15,869 of cash consideration paid by Quantum to its stockholders in advance of the closing date as is further described below. These distributions reduced Quantum's stockholders' equity by an equal amount prior to the transaction closing date. The following table provides a summary of the assets acquired, liabilities assumed, associated preliminary fair value adjustments and provisional period adjustments by the Company as of the merger date. As provided for under US GAAP, management had up to 12 months following the date of merger to finalize the fair value adjustments. Management completed its evaluation in the first quarter of calendar year 2024, and the values in the table below are considered final. Quantum Fair Value Adjustments Provisional Period Adjustments As Recorded by HomeTrust Assets acquired Cash and cash equivalents $ 47,769 $ — $ — $ 47,769 Debt securities available for sale 10,608 — — 10,608 FHLB and FRB stock 1,125 — — 1,125 Loans (1) 567,140 ( 5,207 ) — 561,933 Premises and equipment 4,415 4,668 — 9,083 Accrued interest receivable 1,706 — — 1,706 BOLI 9,066 — — 9,066 Core deposit intangibles — 12,210 — 12,210 Other assets 2,727 569 ( 179 ) 3,117 Total assets acquired $ 644,556 $ 12,240 $ ( 179 ) $ 656,617 Liabilities assumed Deposits $ 570,419 $ 183 $ — $ 570,602 Junior subordinated debt 11,341 ( 1,408 ) — 9,933 Other borrowings 24,728 — — 24,728 Deferred income taxes — 1,341 250 1,591 Other liabilities 3,334 — — 3,334 Total liabilities assumed $ 609,822 $ 116 $ 250 $ 610,188 Net

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Dollars in thousands, except per share data) 4. Debt Securities Debt securities available for sale consist of the following at the dates indicated: June 30, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value MBS, resid

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