ASHEVILLE, N.C., April 24, 2024 (GLOBE NEWSWIRE) -- HomeTrust Bancshares, Inc. (NASDAQ:HTBI) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the first quarter of the year ending December 31, 2024 and approval of its quarterly cash dividend. In addition, on April 22, 2024, the Company's Board of Directors re-authorized the repurchase the remaining 266,639 shares of the Company's common stock under the repurchase plan originally authorized in February of 2022. The shares may be purchased in the open market or in privately negotiated transactions from time to time depending upon market conditions and other factors. For the quarter ended March 31, 2024 compared to the quarter ended December 31, 2023: net income was $15.1 million compared to $13.5 million; diluted earnings per share ("EPS") was $0.88 compared to $0.79; annualized return on assets ("ROA") was 1.37% compared to 1.21%; annualized return on equity ("ROE") was 11.91% compared to 10.81%; net interest margin was 4.02% for both periods; provision for credit losses was $1.2 million compared to $3.4 million; tax-free death benefit proceeds from life insurance of $1.1 million compared to $1.6 million; quarterly cash dividends continued at $0.11 per share totaling $1.9 million for both periods. The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.11 per common share payable on May 30, 2024 to shareholders of record as of the close of business on May 16, 2024. "Once again, I am pleased with the continuation of HomeTrust's top quartile financial performance which has led to national recognition from both Forbes and S&P Global," said Hunter Westbrook, President and Chief Executive Officer. "This quarter, we remained focused on further strengthening the balance sheet which resulted in the expansion of customer deposits by over $100 million, maintaining our net interest margin above 4.00% and continuing our strong credit quality. This is a direct reflection of HomeTrust's philosophy of prudent, sound and profitable balance sheet management, its strong culture of engaged teammates and demonstrates the Company's resilience through economic rate cycles. "As previously stated, our Board of Directors re-authorized the repurchase of shares of the Company's stock. 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. "Lastly, it has been over one year since the merger with, and integration of, Quantum National Bank, and I am extremely pleased that the legacy Quantum employees have embraced our culture and operating philosophies. The performance of these employees, combined with further hires in the Atlanta market, have validated this strategic opportunity." WEBSITE: WWW.HTB.COM Comparison of Results of Operations for the Three Months Ended March 31, 2024 and December 31, 2023Net Income.  Net income totaled $15.1 million, or $0.88 per diluted share, for the three months ended March 31, 2024 compared to net income of $13.5 million, or $0.79 per diluted share, for the three months ended December 31, 2023, an increase of $1.6 million, or 11.9%. Results for the three months ended March 31, 2024 were positively impacted by a decrease of $2.2 million in the provision for credit losses and a $563,000 increase in noninterest income, partially offset by a decrease of $693,000 in net interest income. Details of the changes in the various components of net income are further discussed below. Net Interest Income.  The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.   Three Months Ended   March 31, 2024   December 31, 2023 (Dollars in thousands) AverageBalanceOutstanding   InterestEarned /Paid   Yield /Rate   AverageBalanceOutstanding   InterestEarned /Paid   Yield /Rate Assets                       Interest-earning assets                       Loans receivable(1) $ 3,864,258     $ 59,952       6.24 %   $ 3,876,051     $ 60,069       6.15 % Debt securities available for sale   126,686       1,313       4.17       136,945       1,257       3.64   Other interest-earning assets(2)   131,495       2,090       6.39       121,366       1,493       4.88   Total interest-earning assets   4,122,439       63,355       6.18       4,134,362       62,819       6.03   Other assets   298,117               271,767           Total assets $ 4,420,556             $ 4,406,129           Liabilities and equity                       Interest-bearing liabilities                       Interest-bearing checking accounts $ 590,738     $ 1,426       0.97 %   $ 594,805     $ 1,209       0.81 % Money market accounts   1,281,340       9,664       3.03       1,251,170       8,930       2.83   Savings accounts   191,747       43       0.09       198,522       45       0.09   Certificate accounts   887,618       9,185       4.16       818,698       8,105       3.93   Total interest-bearing deposits   2,951,443       20,318       2.77       2,863,195       18,289       2.53   Junior subordinated debt   10,029       236       9.46       10,005       239       9.48   Borrowings   103,155       1,571       6.13       156,619       2,368       6.00   Total interest-bearing liabilities   3,064,627       22,125       2.90       3,029,819       20,896       2.74   Noninterest-bearing deposits   810,114               837,048           Other liabilities   36,945               45,156           Total liabilities   3,911,686               3,912,023           Stockholders' equity   508,870               494,106           Total liabilities and stockholders' equity $ 4,420,556             $ 4,406,129           Net earning assets $ 1,057,812             $ 1,104,543           Average interest-earning assets to average interest-bearing liabilities   134.52 %             136.46 %         Non-tax-equivalent                       Net interest income     $ 41,230             $ 41,923       Interest rate spread           3.28 %             3.29 % Net interest margin(3)           4.02 %             4.02 % Tax-equivalent(4)                       Net interest income     $ 41,579             $ 42,264       Interest rate spread           3.32 %             3.32 % Net interest margin(3)           4.06 %             4.06 %                                 (1) Average loans receivable balances include loans held for sale and nonaccruing loans.(2) Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks.(3) Net interest income divided by average interest-earning assets.(4) Tax-equivalent results include adjustments to interest income of $349 and $341 for the three months ended March 31, 2024 and December 31, 2023, respectively, calculated based on a combined federal and state tax rate of 24%. Total interest and dividend income for the three months ended March 31, 2024 increased $536,000, or 0.9%, compared to the three months ended December 31, 2023, which was driven by a $597,000, or 40.0%, increase in income on other investments and interest-bearing deposits due to the allocation of liquid funds in higher-yielding deposit accounts. Accretion income on acquired loans of $715,000 and $405,000 was recognized during the same periods, respectively, and was included in interest income on loans. Total interest expense for the three months ended March 31, 2024 increased $1.2 million, or 5.9%, compared to the three months ended December 31, 2023. The increase was the result of both increases in the average cost of funds and average balances across interest-bearing deposit types, partially offset by a decline in average borrowings outstanding. The following table shows the effects that changes in average balances (volume), including differences in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:   Increase / (Decrease)Due to   TotalIncrease /(Decrease) (Dollars in thousands) Volume   Rate   Interest-earning assets           Loans receivable $ (1,008 )   $ 891     $ (117 ) Debt securities available for sale   (112 )     168       56   Other interest-earning assets   96       501       597   Total interest-earning assets   (1,024 )     1,560       536   Interest-bearing liabilities           Interest-bearing checking accounts   (28 )     245       217   Money market accounts   82       652       734   Savings accounts   (2 )     —       (2 ) Certificate accounts   556       524       1,080   Junior subordinated debt   (3 )     —       (3 ) Borrowings   (830 )     33       (797 ) Total interest-bearing liabilities   (225 )     1,454       1,229   Decrease in net interest income         $ (693 )                 Provision for Credit Losses.  The provision for credit losses is the amount of expense that, based on our judgment, is required to maintain the allowance for credit losses ("ACL") at an appropriate level under the current expected credit losses model. The following table presents a breakdown of the components of the provision for credit losses:   Three Months Ended     (Dollars in thousands) March 31, 2024   December 31, 2023   $ Change     % Change   Provision for credit losses                   Loans $ 1,145     $ 4,050     $ (2,905 )     (72 )% Off-balance-sheet credit exposure   20       (690 )     710       103   Total provision for credit losses $ 1,165     $ 3,360     $ (2,195 )     (65 )%                                 For the quarter ended March 31, 2024, the "loans" portion of the provision for credit losses was the result of the following, offset by net charge-offs of $2.3 million during the quarter: $0.1 million benefit driven by changes in the loan mix. $0.9 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments. $0.2 million decrease in specific reserves on individually evaluated credits. For the quarter ended December 31, 2023, the "loans" portion of the provision for credit losses was primarily the result of the following, offset by net charge-offs of $2.8 million during the quarter: $0.5 million benefit driven by changes in the loan mix. $0.9 million provision due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments. $0.8 million increase in specific reserves on individually evaluated credits. For the quarters ended March 31, 2024 and December 31, 2023, the amounts recorded for off-balance-sheet credit exposure were the result of changes in the balance of loan commitments, loan mix and projected economic forecast as outlined above. Noninterest Income.  Noninterest income for the three months ended March 31, 2024 increased $572,000, or 6.9%, when compared to the quarter ended December 31, 2023. Changes in the components of noninterest income are discussed below:   Three Months Ended     (Dollars in thousands) March 31, 2024   December 31, 2023   $ Change   % Change Noninterest income               Service charges and fees on deposit accounts $ 2,149     $ 2,368     $ (219 )     (9 )% Loan income and fees   678       423       255       60   Gain on sale of loans held for sale   1,457       1,037       420       41   Bank owned life insurance ("BOLI") income   1,835       2,152       (317 )     (15 ) Operating lease income   1,859       1,592       267       17   Loss on sale of premises and equipment   (9 )     (248 )     239       96   Other   842       924       (82 )     (9 ) Total noninterest income $ 8,811     $ 8,248     $ 563       7 % Loan income and fees: The increase was the result of loan servicing fee income returning to normal levels in the current quarter. The prior quarter included $150,000 of expense associated with the early payoff and/or charge-off of loans being serviced. Gain on sale of loans held for sale: The increase was primarily driven by SBA loans sold during the period. There were $12.9 million in sales of the guaranteed portion of SBA commercial loans with gains of $1.1 million for the quarter compared to $5.6 million sold and gains of $439,000 for the prior quarter. There were $15.3 million of residential mortgage loans originated for sale which were sold during the current quarter with gains of $316,000 compared to $20.5 million sold with gains of $417,000 in the prior quarter. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a gain of $55,000 for the quarter ended March 31, 2024 versus a loss of $142,000 for the quarter ended December 31, 2023. There were $7.8 million of HELOCs sold for a gain of $16,000 compared to $37.5 million sold with gains of $322,000 in the prior quarter. The decrease in the gain on sale of HELOCs was due to only one sale in the current quarter versus three sales in the prior quarter as well as a combined $78,000 in expense recorded in the current quarter to refund premiums previously received under sold loan recourse provisions and to establish a liability for potential future requests. No such expense was recorded in the prior quarter. BOLI income: The decrease was due to only $1.1 million in tax-free gains on death benefit proceeds in excess of the cash surrender value of the policies in the current quarter compared to $1.6 million in the prior quarter, partially offset by an increase in policy earnings as a result of the partial restructuring of the Company's BOLI policies, which was executed at the end of the prior quarter. Operating lease income: The increase was the result of an increase in the average outstanding balance as well as gains/losses incurred on previously leased equipment, where we recognized net losses of $145,000 and $192,000 in the quarters ended March 31, 2024 and December 31, 2023, respectively. Loss on sale of premises and equipment: During the quarter ended December 31, 2023, the Company recognized $625,000 of expense due to the impairment of the remaining right of use asset associated with a previously closed branch, partially offset by a $380,000 gain on the sale of a parcel of land. Noninterest Expense.  Noninterest expense for the three months ended March 31, 2024 increased $92,000, or 0.3%, when compared to the three months ended December 31, 2023. Changes in the components of noninterest expense are discussed below:   Three Months Ended     (Dollars in thousands) March 31, 2024   December 31, 2023   $ Change   % Change Noninterest expense