- Net income increased to $14.5 million in Q1 2025, up from $14.2 million in Q4 2024.
- Net interest margin improved to 4.18% from 4.09%.
- HomeTrust Bancshares plans strategic market exits and NYSE transition.
HomeTrust Bancshares, Inc. (HTB, Financial) reported robust financial performance for the first quarter ending March 31, 2025, with net income rising to $14.5 million or $0.84 per diluted share, a slight increase from $14.2 million or $0.83 per share recorded in the fourth quarter of 2024. This marks a 2.3% increase in net income, showcasing the bank's consistent growth and profitability.
Key performance indicators reflected improvements, with the net interest margin expanding to 4.18% from the previous quarter’s 4.09%. The return on assets (ROA) increased to 1.33% from 1.27%, and the return on equity (ROE) rose to 10.52% from 10.32%, demonstrating enhanced operational efficiency.
Despite a $2.6 million decrease in total interest and dividend income, attributed mainly to a lower average loan balance, HTB managed to cut its total interest expense by $2.3 million. This improvement was largely due to decreased average balances in certificate accounts and lower funding costs.
The provision for credit losses increased to $1.5 million, compared to a benefit of $855,000 in the preceding quarter, reflecting prudent risk management amid an uncertain economic environment. Net charge-offs decreased to $1.3 million from $1.9 million, indicating improved loan performance.
Strategic moves included the transition to listing on the New York Stock Exchange under the ticker 'HTB' and the decision to sell two branches in Knoxville, Tennessee. These actions aim to refine the bank’s geographic footprint and increase branch efficiency.
HomeTrust Bancshares maintained its quarterly dividend of $0.12 per share, amounting to a total payout of $2.1 million, and repurchased 14,800 shares at an average price of $33.64, signaling continued confidence in its financial health and future prospects.
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