HomeTrust Bancshares, Inc. (NASDAQ: HTBI) ("Company"), the holding
company of HomeTrust Bank ("Bank"), today announced preliminary net
income for the third quarter of fiscal 2021 and approval of its
quarterly dividend.
For the quarter ended March 31, 2021 compared to
the corresponding quarter in the previous year:
- net income was
$7.9 million, compared to $1.2 million;
- diluted earnings
per share ("EPS") was $0.48, compared to $0.07;
- return on assets
("ROA") was 0.84%, compared to 0.14%;
- return on equity
("ROE") was 7.78%, compared to 1.15%;
- provision for
credit losses was a net benefit of $4.1 million, compared to a
provision of $5.4 million;
- noninterest
income increased $4.3 million, or 67.5% to $10.7 million from $6.4
million;
- 289,333 shares
were repurchased during the quarter at an average price of $22.62
per share; and
- quarterly cash
dividends continued at $0.08 per share totaling $1.3 million.
For the nine months ended March 31, 2021
compared to the previous year:
- net income was
$23.1 million, compared to $19.2 million;
- diluted EPS was
$1.40, compared to $1.08;
- ROA was 0.83%,
compared to 0.72%;
- ROE was 7.64%,
compared to 6.19%;
- provision for
credit losses was a net benefit of $6.2 million, compared to a
provision of $5.8 million; and
- noninterest
income increased $5.6 million, or 24.0% to $28.7 million from $23.1
million.
Net income for the three and nine months ended
March 31, 2021 was positively impacted by a $3.4 million and $4.4
million, respectively, increase in gain on sale of loans mainly
driven by the origination and sale of residential mortgage loans
given the continued low rate environment as well as the net benefit
for credit losses over the same two periods compared to prior year.
Partially offsetting these for the three and nine months ended
March 31, 2021 was a $3.7 million prepayment penalty related to the
early retirement of $200.0 million in borrowings as well as a lower
net interest margin than the same periods last year, due to the
decrease in interest rates over the past year.
The Company also announced today that its Board
of Directors declared a quarterly cash dividend of $0.08 per common
share payable on June 3, 2021 to shareholders of record as of the
close of business on May 20, 2021.
“While we’ve faced extraordinary challenges
during this pandemic, our financial results are reflective of the
positive momentum continuing in all of our lines of business,” said
Dana Stonestreet, Chairman, President, and Chief Executive Officer.
“Again, we were able to release reserves this quarter with a $4.1
million benefit for credit losses resulting from the continued
financial strength of our borrowers and improvement in the economic
forecast. In addition, we reduced borrowings by $200 million to
lower our cost of funds going forward, paying a prepayment penalty
of $2.8 million (after-tax), and repurchased 289,333 of our shares
during the quarter.
“HomeTrust had another strong quarter with the
sale of $107 million of residential mortgages producing a gain of
$2.7 million which was a 220% increase from the same quarter last
year as well as a record quarter for the gain on sale of SBA loans
of $1.8 million which was up 295% over the same quarter last year.
Our equipment finance portfolio grew $64 million to $317 million
which was a 33% annualized increase year-to-date as this new line
of business continues to build momentum. We continue to focus on
enhancing the asset origination capacity of all of our lines of
business.
“We continue to focus on the overall digital
experience of our customers including making online account opening
easier and faster. The pandemic drove home the importance of
strengthening all our service delivery channels to be able to scale
according to customer preferences on how they want our services to
be delivered. We expect continued growth in all of our diversified
lines of business as we focus on achieving improved financial
results that create shareholder value.”
COVID-19 Update
Loan Programs. The Company continues to offer
certain relief options designed to support its customers and
communities, including participating in the additional (or second
round) Small Business Administration ("SBA") Paycheck Protection
Program ("PPP") funds approved in December's stimulus bill. The
Company originated $29.7 million in second round PPP loans during
the three months ended March 31, 2021. As of March 31, 2021, PPP
loans totaled $73.1 million which included $1.4 million in net
deferred fees that will be accreted into interest income over the
remaining life of the loans unless the loans are forgiven at which
point these fees would be accelerated into income. For the three
and nine months ended March 31, 2021, the Company earned $614,000
and $1.4 million, respectively, in fees through accretion including
some accelerated accretion resulting from loan forgiveness. The
Company has worked with the SBA and its customers to forgive a
total of $38.9 million in PPP loans during its participation in the
program.
Loan Modifications. The Company
continues to closely monitor the effects of COVID-19 on its loan
portfolio and all associated risks to minimize any potential
losses. For the quarter ended March 31, 2021, the Bank continued to
experience declines in requests by borrowers for payment and
financial relief programs; however, the Company will continue to
work with individual borrowers in order to minimize the impact on
both the Bank and its customers. A majority of loans placed on
payment deferral during 2020 have come out of deferral and
borrowers are either making regular loan payments or interest-only
payments until the latter part of 2021 as a form of continued
relief to the borrower. As of March 31, 2021, the Company had $76.8
million in commercial loan deferrals on interest-only payments. As
of March 31, 2021, the Company had $5.8 million in loans with full
principal and interest payment deferrals compared to $551.3 million
at June 30, 2020.
The Company believes the steps it is taking are
necessary to effectively manage its portfolio and assist customers
through the ongoing uncertainty surrounding the duration, impact
and government response to the COVID-19 pandemic. In addition, the
Company will continue to work with its customers to determine the
best option for repayment of accrued interest on the deferred
payments.
Branch Operations. Since October 13, 2020, all
of the Company's branch lobbies across its four state footprint
have been open with appropriate protective measures to help ensure
the safety of its customers and retail banking employees. In its
response to navigate through the pandemic, the Bank plans to carry
forward certain improvements that can translate into better
customer service and Bank performance, such as 1) lowering call
center wait times for phone calls by allowing overflow to be routed
to branches, 2) reducing staffing in branches to lower cost as
customers continue their digital adoption and branch transactions
decline, and 3) lowering future need for back office overhead by
allowing more remote work when appropriate.
Income Statement Review
Net interest income increased by $384,000, or
1.5% to $25.7 million for the quarter ended March 31, 2021,
compared to $25.3 million for the comparative quarter in fiscal
2020. Interest and dividend income decreased by $3.7 million, or
11.2%, primarily driven by lower yields on loans and commercial
paper as a result of lower federal funds and other market interest
rates. This decrease was more than offset by a $4.1 million
decrease in interest expense. Average interest-earning assets
increased $254.3 million, or 7.9% to $3.5 billion for the quarter
ended March 31, 2021. The average balance of total loans receivable
increased by $109.3 million, or 4.1% compared to the same quarter
last year primarily due to PPP loan originations and to a lesser
extent organic loan growth. The average balance of commercial paper
and deposits in other banks increased $144.0 million, or 38.1%
driven by increases in deposits in other bank investments as a
result of the Company's increased liquidity between the periods.
The Company's investments in commercial paper have short-term
maturities and limited exposure of $15.0 million or less per each
highly-rated company. The overall increase in interest-earning
assets was primarily funded by a $297.1 million, or 11.7% increase
in average interest and noninterest-bearing deposits as compared to
the same quarter last year. Net interest margin (on a fully
taxable-equivalent basis) for the three months ended March 31, 2021
decreased to 3.02% from 3.16% for the same period a year ago.
Total interest and dividend income decreased
$3.7 million, or 11.2% for the three months ended March 31, 2021 as
compared to the same period last year, which was primarily driven
by a $2.2 million, or 7.2% decrease in loan interest income, a $1.2
million, or 65.9% decrease in interest income from commercial paper
and deposits in other banks, and a $416,000, or 45.6% decrease in
interest income on securities available for sale. The lower
interest income in each category was driven by the decrease in
yields caused by the significant reduction in current market rates
compared to the same quarter last year. Average loan yields
decreased 43 basis points to 4.08% for the quarter ended March 31,
2021 from 4.51% in the corresponding quarter last year. Average
yields on commercial paper and deposits in other banks decreased
143 basis points to 0.47% for the quarter ended March 31, 2021 from
1.90% in the corresponding quarter last year. Average yields on
securities available for sale decreased 106 basis points to 1.31%
for the quarter ended March 31, 2021 from 2.37% in the
corresponding quarter last year.
Total interest expense decreased $4.1 million,
or 53.1% for the quarter ended March 31, 2021 compared to the same
period last year. The decrease was driven by a $4.0 million, or
66.6% decrease in interest expense on deposits and a $125,000, or
7.1% decrease in interest expense on borrowings. Average
interest-bearing deposits for the quarter ended March 31, 2021
increased $86.6 million, or 4.0%, but was more than offset by the
73 basis point decrease in cost of deposits, down to 0.36% compared
to 1.09% in the same period last year. Average borrowings for the
quarter ended March 31, 2021 decreased $8.2 million, or 1.7% along
with a six basis point decrease in the average cost of borrowings
compared to the same period last year. The increase in average
deposits (interest and noninterest-bearing) was due to successful
deposit gathering campaigns and funds from PPP loans and other
government stimulus. The decrease in the average cost of borrowing
was driven by the lower federal funds rate during the current
quarter compared to the prior year. The overall average cost of
funds decreased 62 basis points to 0.54% for the current quarter
compared to 1.16% in the same quarter last year due primarily to
the impact of lower rates.
Net interest income decreased to $77.3 million
for the nine months ended March 31, 2021, compared to $79.4 million
for the comparative period in fiscal 2020. The $2.1 million, or
2.6% decrease was due to a $15.3 million decrease in interest and
dividend income partially offset by a $13.2 million decrease in
interest expense, both of which were driven by the lower rate
environment in the current period. Average interest-earning assets
increased $159.7 million, or 4.8% to $3.5 billion for the nine
months ended March 31, 2021 compared to $3.3 billion in the
corresponding prior period. The average balance of total loans
receivable increased by $92.6 million, or 3.4% compared to the same
period last year. The average balance of commercial paper and
deposits in other banks increased $92.0 million, or 25.4% between
the periods. These increases were funded by a $21.5 million, or
14.1% decrease in securities available for sale, a $3.5 million, or
8.3% decrease in other interest-earning assets and a $185.9
million, or 55.3% increase in average noninterest-bearing deposits
partially offset by a $11.9 million, or 0.4% decrease in average
interest-bearing liabilities as compared to the same period last
year. Net interest margin (on a fully taxable-equivalent basis) for
the nine months ended March 31, 2021 decreased to 3.02% from 3.25%
for the same period a year ago.
Total interest and dividend income decreased
$15.3 million, or 14.5% for the nine months ended March 31, 2021 as
compared to the same period last year, which was primarily driven
by a $9.6 million, or 10.2% decrease in loan interest income, a
$3.8 million, or 64.7% decrease in interest income from commercial
paper and deposits in other banks, a $1.4 million, or 47.3%
decrease in interest income on securities available for sale, and a
$425,000, or 19.7% decrease in interest income on other
interest-earning assets. The lower interest income was driven by
the decrease in market yields compared to the prior year period.
Average loan yields decreased 60 basis points to 4.03% for the nine
months ended March 31, 2021 from 4.63% in the corresponding period
last year. Average yields on commercial paper and deposits in other
banks decreased 157 basis points to 0.62% for the nine months ended
March 31, 2021 from 2.19% in the corresponding period last year.
Average yields on securities available for sale decreased 98 basis
points to 1.55% for the nine months ended March 31, 2021 from 2.53%
in the corresponding period last year.
Total interest expense decreased $13.2 million,
or 51.1% for the nine months ended March 31, 2021 compared to the
same period last year. The decrease was driven by a $10.5 million,
or 58.1% decrease in interest expense on deposits and a $2.6
million, or 34.3% decrease in interest expense on borrowings. The
$104.2 million, or 4.8% increase in average interest-bearing
deposits for the nine months ended March 31, 2021 was more than
offset by the 67 basis point decrease down to 0.45% in the
corresponding cost of funds compared to 1.12%. Average borrowings
for the nine months ended March 31, 2021 decreased $116.1 million,
or 19.8% along with a 32 basis point decrease in the average cost
of borrowings compared to the same period last year. The overall
average cost of funds decreased 63 basis points to 0.62% for the
nine month period compared to 1.25% in the same period last year
due primarily to the impact of the lower amount of borrowings and
rates.
Noninterest income increased $4.3 million, or
67.5% to $10.7 million for the three months ended March 31, 2021
from $6.4 million for the same period in the previous year
primarily due to a $3.4 million, or 224.8% increase in gain on sale
of loans, a $703,000, or 40.0% increase in other noninterest
income, a $342,000, or 116.3% increase in loan income and fees,
partially offset by a $110,000, or 4.8% decrease in service charges
and fees on deposit accounts. The increase in gain on the sale of
loans was driven by an increase in gains from sales of mortgage,
home equity, and SBA loans. During the quarter ended March 31,
2021, $20.2 million of the guaranteed portion of SBA commercial
loans were sold with gains of $1.8 million compared to $6.8 million
sold and gains of $468,000 in the corresponding quarter in the
prior year. There were $106.5 million of residential mortgage loans
originated for sale which were sold with gains of $2.7 million
compared to $32.2 million sold and gains of $852,000 in the
corresponding quarter in the prior year. In addition, $43.8 million
of home equity loans were sold during the quarter ended March 31,
2021 for a gain of $301,000 compared to $18.0 million sold and
gains of $183,000 in the corresponding quarter. The increase in
other noninterest income primarily related to operating lease
income from the continued growth in the equipment finance line of
business. The increase in loan income and fees is primarily a
result of higher fees from the adjustable rate conversion program
and other servicing fees. The decrease in service charges on
deposit accounts was primarily related to lower nonsufficient fund
fees as customers have decreased spending during the pandemic.
Noninterest income increased $5.6 million, or
24.0% to $28.7 million for the nine months ended March 31, 2021
from $23.1 million for the same period in the previous year
primarily due to a $4.4 million, or 57.4% increase in gain on sale
of loans and a $2.4 million, or 54.1% increase in other noninterest
income, partially offset by a $645,000, or 8.8% decrease in service
charges and fees on deposit accounts, a $368,000, or 18.0% decrease
in loan income and fees, and a $173,000, or 10.0% decrease in
income from Bank Owned Life Insurance ("BOLI"). The increase in
gain on the sale of loans was driven by an increase in sales of
mortgage, home equity, and SBA loans. There were $297.2 million of
residential mortgage loans originated for sale which were sold with
gains of $7.7 million compared to $135.4 million sold and gains of
$3.6 million in the corresponding period in the prior year.
Included in prior year's gain on sale of loans was an additional
$1.3 million non-recurring gain related to one-to-four family loans
of $154.9 million that were sold during the corresponding period
last year. During the nine months ended March 31, 2021, $44.6
million of the guaranteed portion of SBA commercial loans were sold
with gains of $3.7 million compared to $36.0 million sold and gains
of $2.5 million in the corresponding period in the prior year. In
addition, $85.9 million of home equity loans were sold during the
nine months ended March 31, 2021 for a gain of $559,000 compared to
$18.0 million sold and gains of $183,000 million in the
corresponding period in the prior year. The increase in other
noninterest income primarily related to operating lease income from
the equipment finance line of business. The decrease in service
charges on deposit accounts was primarily related to lower
nonsufficient fund fees as customers have decreased spending during
the pandemic. The decrease in loan income and fees was primarily a
result of lower fees from the Company's adjustable rate conversion
program. The decrease in BOLI income was driven by lower interest
rates.
Noninterest expense for the three months ended
March 31, 2021 increased $5.6 million, or 22.5% to $30.5 million
compared to $24.9 million for the three months ended March 31,
2020. The increase was primarily due to a $3.7 million prepayment
penalty on the early retirement of $200.0 million of borrowings
completed in an effort to improve future profitability; a $1.3
million, or 9.2% increase in salaries and employee benefits as a
result of new positions, mortgage loan origination incentives, and
annual salary increases; a $558,000, or 27.6% increase in computer
services as a result of increased processing charges; a $396,000,
or 10.2% increase in other expenses, mainly driven by depreciation
from the Company's equipment finance line of business; and a
$210,000, or 9.3% increase in net occupancy expense from
investments in infrastructure. Partially offsetting these increases
was a cumulative decrease of $394,000, or 19.2% in telephone,
postage, and supplies expense; marketing and advertising expense;
deposit insurance premiums, and core deposit intangible
amortization for the three months ended March 31, 2021 compared to
the same period last year. In addition, there was a $152,000, or
60.8% decrease in real estate owned ("REO") related expenses as a
result of fewer properties held and no post-foreclosure
writedowns.
Noninterest expense for the nine months ended
March 31, 2021 increased $10.5 million, or 14.4% to $82.9 million
compared to $72.5 million for the corresponding period last year.
The increase was primarily due to a $4.2 million, or 9.8% increase
in salaries and employee benefits; the previously mentioned $3.7
million prepayment penalty; a $2.4 million, or 23.3% increase in
other expenses, driven by depreciation from the Company's equipment
finance line of business; a $1.1 million, or 17.8% increase in
computer services; and a $887,000 increase in deposit insurance
premiums as a result of credits issued by the Federal Deposit
Insurance Corporation being utilized in the prior year period.
Partially offsetting these increases was a cumulative decrease of
$1.4 million, or 26.0% in telephone, postage, and supplies expense;
marketing and advertising expense; and core deposit intangible
amortization for the nine months ended March 31, 2021 compared to
the same period last year. In addition, there was a $372,000, or
44.6% decrease in REO related expenses as a result of fewer
properties held, no post-foreclosure writedowns, and a gain on on
the sale of REO in the current period compared to a loss in the
comparative period last year.
For the three months ended March 31, 2021, the
Company's income tax expense increased $1.9 million to $2.1 million
from $188,000 as a result of higher taxable income. The effective
tax rate for the three months ended March 31, 2021 and 2020 was
21.0% and 13.6%, respectively.
For the nine months ended March 31, 2021, the
Company's income tax expense increased $1.1 million, or 21.2% to
$6.1 million from $5.1 million as a result of higher taxable
income. The effective tax rate for the nine months ended March 31,
2021 and 2020 was 21.0% and 20.9%, respectively.
Balance Sheet Review
Total assets and liabilities decreased by $74.2
million and $72.4 million down to $3.7 billion and $3.2 billion,
respectively, at March 31, 2021 as compared to June 30, 2020. The
cumulative increase of $77.4 million, or 31.0% in cash and cash
equivalents and securities held for sale was more than offset by
the cumulative decrease of $80.2 million, or 22.2% in commercial
paper and deposits in other banks as the Company repositioned its
liquidity due to maturities and lower short-term rates during the
period. The $9.5 million, or 12.3% increase in loans held for sale
primarily relates to additional 1-4 family and home equity loans
originated for sale during the period. The $10.0 million, or 25.8%
decrease in other investments, at cost was due to Federal Home Loan
Bank ("FHLB") stock being sold back in connection with the
previously mentioned early retirement of borrowings.
Total loans decreased $79.0 million, or 2.9% to
$2.7 billion at March 31, 2021 from $2.8 billion at June 30, 2020.
The decrease was driven by two large commercial relationship
payoffs totaling $52.8 million, PPP loan forgiveness totaling $37.3
million, and the continued payoff of purchased HELOCs of $25.7
million.
Total deposits increased $122.7 million, or 4.4%
to $2.9 billion at March 31, 2021 from $2.8 billion at June 30,
2020 which was driven by a $358.4 million, or 17.5% increase in
core deposits as a result of additional funds to customers from
government stimulus and the Company's focused effort to realign the
deposit mix. Partially offsetting the increase was a managed runoff
of certificates of deposit and brokered deposits totaling $235.7
million, or 31.9% down to $503.5 million at March 31, 2021. Total
borrowings decreased $200.0 million, or 42.1% to $275.0 million at
March 31, 2021 from $475.0 million at June 30, 2020 due to the
early retirement of FHLB borrowings discussed previously.
On July 1, 2020, the Company adopted the current
expected credit loss ("CECL") accounting standard in accordance
with Accounting Standards Update ("ASU") 2016-13, "Financial
Instruments-Credit Losses (Topic 326): Measurement of Credit Losses
on Financial Instruments." The cumulative effect adjustment from
this change in accounting policy resulted in an increase in its
allowance for credit losses for loans of $14.8 million, additional
deferred tax assets of $3.9 million, additional reserve for
unfunded loan commitments of $2.3 million, and a reduction to
retained earnings of $13.2 million. In addition, an allowance for
credit loss for commercial paper was established for $250,000 with
a deferred tax asset of $58,000. The adoption of this ASU did not
have an effect on available for sale debt securities for the nine
months ended March 31, 2021.
Stockholders' equity at March 31, 2021 decreased
$1.8 million, or 0.4% to $406.5 million compared to $408.3 million
at June 30, 2020. Changes within stockholders' equity included
$23.1 million in net income and $4.7 million in stock-based
compensation and stock option exercises, offset by $13.4 million
related to the adoption of the new CECL accounting standard,
566,455 shares of common stock being repurchased at an average cost
of $20.69, or approximately $11.7 million in total, and $3.7
million related to cash dividends declared. As of March 31, 2021,
the Bank was considered "well capitalized" in accordance with its
regulatory capital guidelines and exceeded all regulatory capital
requirements.
Asset Quality
The allowance for credit losses was $36.1
million, or 1.34% of total loans, at March 31, 2021 compared to
$28.1 million, or 1.01% of total loans, at June 30, 2020. The
allowance for credit losses to total gross loans excluding PPP
loans was 1.38% at March 31, 2021, compared to 1.04% at June 30,
2020. The overall increase was driven by additional allowance
stemming from the Company's adoption of the new CECL accounting
standard.
Provision for credit losses was a net benefit of
$6.2 million for the nine months ended March 31, 2021, compared to
a $5.8 provision for the corresponding period in fiscal year 2020.
The net benefit of provision was primarily driven by changes in the
economic forecast which continue to improve since the adoption of
the standard and a decline in the balance of total loans. Net loan
recoveries totaled $185,000 for the three months ended March 31,
2021, compared to charge-offs of $581,000 for the same period last
year. Net recoveries as a percentage of average loans were (0.03)%
for the quarter ended March 31, 2021 compared to net charge-offs of
0.09% for the corresponding quarter in 2020. Net loan charge-offs
totaled $452,000 and $379,000 for the nine months ended March 31,
2021 and 2020, respectively. Net charge-offs as a percentage of
average loans were 0.02% for each of the nine months ended March
31, 2021 and 2020.
Nonperforming assets decreased by $2.9 million,
or 17.8% to $13.4 million, or 0.37% of total assets at March 31,
2021 compared to $16.3 million, or 0.44% of total assets at June
30, 2020. Nonperforming assets included $13.2 million in
nonaccruing loans and $143,000 in REO at March 31, 2021, compared
to $15.9 million and $337,000 in nonaccruing loans and REO,
respectively, at June 30, 2020. Included in nonperforming loans are
$5.9 million of loans restructured from its original terms of which
$4.1 million were current at March 31, 2021, with respect to its
modified payment terms. Nonperforming loans to total loans was
0.49% at March 31, 2021 and 0.58% at June 30, 2020.
The ratio of classified assets to total assets
decreased to 0.76% at March 31, 2021 from 0.84% at June 30, 2020
due to the decrease in classified loans during fiscal 2021.
Classified assets decreased to $27.8 million at March 31, 2021
compared to $31.1 million at June 30, 2020 primarily due to $4.9
million in payoffs and $1.5 million in charge-offs during the
period. The Company's overall asset quality metrics continue to
demonstrate its commitment to growing and maintaining a loan
portfolio with a moderate risk profile; however, the Company will
remain diligent in its review of the portfolio and overall economy
as it continues to maneuver through the uncertainty surrounding
COVID-19.
About HomeTrust Bancshares,
Inc.
HomeTrust Bancshares, Inc. is the holding
company for the Bank. As of March 31, 2021, the Company had assets
of $3.6 billion. The Bank, founded in 1926, is a North Carolina
state chartered, community-focused financial institution committed
to providing value added relationship banking with 41 locations as
well as online/mobile channels. Locations include: North Carolina
(including the Asheville metropolitan area, the "Piedmont" region,
Charlotte, and Raleigh/Cary), Upstate South Carolina (Greenville),
East Tennessee (including Kingsport/Johnson City/Bristol,
Knoxville, and Morristown) and Southwest Virginia (including the
Roanoke Valley).
Forward-Looking Statements
This press release includes "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements often include words such as
"believe," "expect," "anticipate," "estimate," and "intend" or
future or conditional verbs such as "will," "would," "should,"
"could," or "may." Forward-looking statements are not historical
facts but instead represent management's current expectations and
forecasts regarding future events, many of which are inherently
uncertain and outside of the Company's control. Actual results may
differ, possibly materially, from those currently expected or
projected in these forward-looking statements. Factors that could
cause the Company's actual results to differ materially from those
described in the forward-looking statements include: the effect of
the COVID-19 pandemic, including on the Company's credit quality
and business operations, as well as its impact on general economic
and financial market conditions and other uncertainties resulting
from the COVID-19 pandemic, such as the extent and duration of the
impact on public health, the U.S. and global economies, and
consumer and corporate customers, including economic activity,
employment levels and market liquidity; increased competitive
pressures; changes in the interest rate environment; changes in
general economic conditions and conditions within the securities
markets; legislative and regulatory changes; and other factors
described in HomeTrust's latest annual Report on Form 10-K and
Quarterly Reports on Form 10-Q and other documents filed with or
furnished to the Securities and Exchange Commission - which are
available on their website at www.htb.com and on the SEC's
website at www.sec.gov. These risks could cause the Company's
actual results for fiscal 2021 and beyond to differ materially from
those expressed in any forward-looking statements by, or on behalf
of, the Company and could negatively affect its operating and stock
performance. Any of the forward-looking statements that the Company
makes in this press release or the documents they file with or
furnish to the SEC are based upon management's beliefs and
assumptions at the time they are made and may turn out to be wrong
because of inaccurate assumptions they might make, because of the
factors described above or because of other factors that they
cannot foresee. The Company does not undertake and specifically
disclaim any obligation to revise any forward-looking statements to
reflect the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements.
| WEBSITE:
WWW.HOMETRUSTBANCSHARES.COM |
| Contact: |
|
| |
Dana L. Stonestreet – Chairman, President and Chief Executive
Officer |
| |
Tony J. VunCannon – Executive Vice President, Chief Financial
Officer, Corporate Secretary and Treasurer |
| |
828-259-3939 |
Consolidated Balance Sheets
(Unaudited)
| (Dollars in thousands) |
March 31, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020(1) |
|
March 31, 2020 |
| Assets |
|
|
|
|
|
|
|
|
|
| Cash |
$ |
24,621 |
|
|
|
$ |
27,365 |
|
|
|
$ |
29,472 |
|
|
|
$ |
31,908 |
|
|
|
$ |
41,206 |
|
|
| Interest-bearing deposits |
139,474 |
|
|
|
198,979 |
|
|
|
141,672 |
|
|
|
89,714 |
|
|
|
40,855 |
|
|
|
Cash and cash equivalents |
164,095 |
|
|
|
226,344 |
|
|
|
171,144 |
|
|
|
121,622 |
|
|
|
82,061 |
|
|
| Commercial paper, net |
238,445 |
|
|
|
183,778 |
|
|
|
204,867 |
|
|
|
304,967 |
|
|
|
281,955 |
|
|
| Certificates of deposit in
other banks |
42,015 |
|
|
|
48,637 |
|
|
|
52,361 |
|
|
|
55,689 |
|
|
|
57,544 |
|
|
| Securities available for sale,
at fair value |
162,417 |
|
|
|
153,540 |
|
|
|
96,159 |
|
|
|
127,537 |
|
|
|
158,621 |
|
|
| Other investments, at
cost |
28,899 |
|
|
|
39,572 |
|
|
|
38,949 |
|
|
|
38,946 |
|
|
|
41,201 |
|
|
| Loans held for sale |
86,708 |
|
|
|
118,439 |
|
|
|
124,985 |
|
|
|
77,177 |
|
|
|
38,682 |
|
|
| Total loans, net of deferred
loan costs |
2,690,153 |
|
|
|
2,678,624 |
|
|
|
2,769,396 |
|
|
|
2,769,119 |
|
|
|
2,663,524 |
|
|
| Allowance for credit
losses |
(36,059 |
) |
|
|
(39,844 |
) |
|
|
(43,132 |
) |
|
|
(28,072 |
) |
|
|
(26,850 |
) |
|
|
Net loans |
2,654,094 |
|
|
|
2,638,780 |
|
|
|
2,726,264 |
|
|
|
2,741,047 |
|
|
|
2,636,674 |
|
|
| Premises and equipment,
net |
70,886 |
|
|
|
70,104 |
|
|
|
59,418 |
|
|
|
58,462 |
|
|
|
58,738 |
|
|
| Accrued interest
receivable |
8,271 |
|
|
|
9,796 |
|
|
|
10,648 |
|
|
|
12,312 |
|
|
|
9,501 |
|
|
| Real estate owned ("REO") |
143 |
|
|
|
252 |
|
|
|
144 |
|
|
|
337 |
|
|
|
1,075 |
|
|
| Deferred income taxes |
16,889 |
|
|
|
18,626 |
|
|
|
19,209 |
|
|
|
16,334 |
|
|
|
21,750 |
|
|
| Bank owned life insurance
("BOLI") |
93,877 |
|
|
|
93,326 |
|
|
|
92,775 |
|
|
|
92,187 |
|
|
|
91,612 |
|
|
| Goodwill |
25,638 |
|
|
|
25,638 |
|
|
|
25,638 |
|
|
|
25,638 |
|
|
|
25,638 |
|
|
| Core deposit intangibles |
473 |
|
|
|
638 |
|
|
|
840 |
|
|
|
1,078 |
|
|
|
1,381 |
|
|
| Other assets |
55,763 |
|
|
|
52,501 |
|
|
|
50,633 |
|
|
|
49,519 |
|
|
|
41,600 |
|
|
|
Total Assets |
$ |
3,648,613 |
|
|
|
$ |
3,679,971 |
|
|
|
$ |
3,674,034 |
|
|
|
$ |
3,722,852 |
|
|
|
$ |
3,548,033 |
|
|
| Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
| Deposits |
$ |
2,908,478 |
|
|
|
$ |
2,743,269 |
|
|
|
$ |
2,742,046 |
|
|
|
$ |
2,785,756 |
|
|
|
$ |
2,554,787 |
|
|
| Borrowings |
275,000 |
|
|
|
475,000 |
|
|
|
475,000 |
|
|
|
475,000 |
|
|
|
535,000 |
|
|
| Other liabilities |
58,683 |
|
|
|
56,978 |
|
|
|
56,637 |
|
|
|
53,833 |
|
|
|
52,806 |
|
|
|
Total liabilities |
3,242,161 |
|
|
|
3,275,247 |
|
|
|
3,273,683 |
|
|
|
3,314,589 |
|
|
|
3,142,593 |
|
|
| 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 (2) |
167 |
|
|
|
168 |
|
|
|
170 |
|
|
|
170 |
|
|
|
171 |
|
|
| Additional paid in
capital |
162,010 |
|
|
|
166,352 |
|
|
|
170,204 |
|
|
|
169,648 |
|
|
|
170,368 |
|
|
| Retained earnings |
248,767 |
|
|
|
242,182 |
|
|
|
234,023 |
|
|
|
242,776 |
|
|
|
240,325 |
|
|
| Unearned Employee Stock
Ownership Plan ("ESOP") shares |
(5,951 |
) |
|
|
(6,083 |
) |
|
|
(6,216 |
) |
|
|
(6,348 |
) |
|
|
(6,480 |
) |
|
| Accumulated other
comprehensive income |
1,459 |
|
|
|
2,105 |
|
|
|
2,170 |
|
|
|
2,017 |
|
|
|
1,056 |
|
|
|
Total stockholders' equity |
406,452 |
|
|
|
404,724 |
|
|
|
400,351 |
|
|
|
408,263 |
|
|
|
405,440 |
|
|
|
Total Liabilities and Stockholders' Equity |
$ |
3,648,613 |
|
|
|
$ |
3,679,971 |
|
|
|
$ |
3,674,034 |
|
|
|
$ |
3,722,852 |
|
|
|
$ |
3,548,033 |
|
|
_________________________________(1)
Derived from audited financial statements. (2) Shares of
common stock issued and outstanding were 16,655,347 at March 31,
2021, 16,791,027 at December 31, 2020; 17,020,724 at September 30,
2020; 17,021,357 at June 30, 2020; and 17,101,954 at March 31,
2020.
Consolidated Statements of Income
(Unaudited)
| |
|
Three Months Ended |
|
Nine Months Ended |
| (Dollars in thousands) |
|
March 31, |
|
December 31, |
|
March 31, |
|
March 31, |
|
March 31, |
| |
|
2021 |
|
2020 |
|
2020 |
|
2021 |
|
2020 |
| Interest and Dividend
Income |
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
27,629 |
|
|
|
$ |
28,343 |
|
|
|
$ |
29,781 |
|
|
|
$ |
84,564 |
|
|
|
$ |
94,166 |
|
|
Commercial paper and interest-bearing deposits |
|
611 |
|
|
|
614 |
|
|
|
1,794 |
|
|
|
2,106 |
|
|
|
5,959 |
|
|
Securities available for sale |
|
496 |
|
|
|
504 |
|
|
|
912 |
|
|
|
1,528 |
|
|
|
2,901 |
|
|
Other investments |
|
585 |
|
|
|
696 |
|
|
|
550 |
|
|
|
1,729 |
|
|
|
2,154 |
|
|
Total interest and dividend income |
|
29,321 |
|
|
|
30,157 |
|
|
|
33,037 |
|
|
|
89,927 |
|
|
|
105,180 |
|
| Interest
Expense |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
1,996 |
|
|
|
2,347 |
|
|
|
5,971 |
|
|
|
7,596 |
|
|
|
18,145 |
|
|
Borrowings |
|
1,632 |
|
|
|
1,688 |
|
|
|
1,757 |
|
|
|
5,007 |
|
|
|
7,619 |
|
|
Total interest expense |
|
3,628 |
|
|
|
4,035 |
|
|
|
7,728 |
|
|
|
12,603 |
|
|
|
25,764 |
|
| Net Interest
Income |
|
25,693 |
|
|
|
26,122 |
|
|
|
25,309 |
|
|
|
77,324 |
|
|
|
79,416 |
|
| Provision (Benefit)
for Credit Losses |
|
(4,100 |
) |
|
|
(3,030 |
) |
|
|
5,400 |
|
|
|
(6,180 |
) |
|
|
5,800 |
|
| Net Interest Income
after Provision (Benefit) for Credit Losses |
|
29,793 |
|
|
|
29,152 |
|
|
|
19,909 |
|
|
|
83,504 |
|
|
|
73,616 |
|
| Noninterest
Income |
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees on deposit accounts |
|
2,194 |
|
|
|
2,416 |
|
|
|
2,304 |
|
|
|
6,707 |
|
|
|
7,352 |
|
|
Loan income and fees |
|
636 |
|
|
|
569 |
|
|
|
294 |
|
|
|
1,679 |
|
|
|
2,047 |
|
|
Gain on sale of loans held for sale |
|
4,881 |
|
|
|
3,704 |
|
|
|
1,503 |
|
|
|
11,929 |
|
|
|
7,577 |
|
|
BOLI income |
|
508 |
|
|
|
511 |
|
|
|
518 |
|
|
|
1,551 |
|
|
|
1,724 |
|
|
Other, net |
|
2,459 |
|
|
|
2,144 |
|
|
|
1,756 |
|
|
|
6,795 |
|
|
|
4,409 |
|
|
Total noninterest income |
|
10,678 |
|
|
|
9,344 |
|
|
|
6,375 |
|
|
|
28,661 |
|
|
|
23,109 |
|
| Noninterest
Expense |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
15,784 |
|
|
|
15,700 |
|
|
|
14,455 |
|
|
|
46,691 |
|
|
|
42,537 |
|
|
Net occupancy expense |
|
2,456 |
|
|
|
2,261 |
|
|
|
2,246 |
|
|
|
7,010 |
|
|
|
6,972 |
|
|
Computer services |
|
2,581 |
|
|
|
2,220 |
|
|
|
2,023 |
|
|
|
7,108 |
|
|
|
6,032 |
|
|
Telephone, postage, and supplies |
|
812 |
|
|
|
871 |
|
|
|
862 |
|
|
|
2,345 |
|
|
|
2,462 |
|
|
Marketing and advertising |
|
319 |
|
|
|
327 |
|
|
|
396 |
|
|
|
971 |
|
|
|
1,716 |
|
|
Deposit insurance premiums |
|
363 |
|
|
|
487 |
|
|
|
462 |
|
|
|
1,361 |
|
|
|
474 |
|
|
Loss (gain) on sale and impairment of REO |
|
(14 |
) |
|
|
— |
|
|
|
(15 |
) |
|
|
(49 |
) |
|
|
88 |
|
|
REO expense |
|
98 |
|
|
|
165 |
|
|
|
250 |
|
|
|
511 |
|
|
|
746 |
|
|
Core deposit intangible amortization |
|
165 |
|
|
|
202 |
|
|
|
334 |
|
|
|
605 |
|
|
|
1,118 |
|
|
Prepayment penalty on borrowings |
|
3,656 |
|
|
|
— |
|
|
|
— |
|
|
|
3,656 |
|
|
|
— |
|
|
Other |
|
4,286 |
|
|
|
4,210 |
|
|
|
3,890 |
|
|
|
12,740 |
|
|
|
10,332 |
|
|
Total noninterest expense |
|
30,506 |
|
|
|
26,443 |
|
|
|
24,903 |
|
|
|
82,949 |
|
|
|
72,477 |
|
| Income Before Income
Taxes |
|
9,965 |
|
|
|
12,053 |
|
|
|
1,381 |
|
|
|
29,216 |
|
|
|
24,248 |
|
| Income Tax
Expense |
|
2,096 |
|
|
|
2,592 |
|
|
|
188 |
|
|
|
6,133 |
|
|
|
5,060 |
|
| Net
Income |
|
$ |
7,869 |
|
|
|
$ |
9,461 |
|
|
|
$ |
1,193 |
|
|
|
$ |
23,083 |
|
|
|
$ |
19,188 |
|
Per Share Data
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
March 31, |
|
December 31, |
|
March 31, |
|
March 31, |
|
March 31, |
| |
|
2021 |
|
2020 |
|
2020 |
|
2021 |
|
2020 |
| Net income per common
share:(1) |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.49 |
|
|
$ |
0.58 |
|
|
$ |
0.07 |
|
|
$ |
1.42 |
|
|
$ |
1.12 |
|
|
Diluted |
|
$ |
0.48 |
|
|
$ |
0.57 |
|
|
$ |
0.07 |
|
|
$ |
1.40 |
|
|
$ |
1.08 |
|
| Average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
15,979,590 |
|
|
16,202,844 |
|
|
16,688,646 |
|
|
16,139,059 |
|
|
16,898,391 |
|
|
Diluted |
|
16,485,718 |
|
|
16,563,359 |
|
|
17,258,428 |
|
|
16,339,130 |
|
|
17,524,252 |
|
| Book value per share at end of
period |
|
$ |
24.40 |
|
|
$ |
24.10 |
|
|
$ |
23.71 |
|
|
$ |
24.40 |
|
|
$ |
23.71 |
|
| Tangible book value per share
at end of period (2) |
|
$ |
22.84 |
|
|
$ |
22.55 |
|
|
$ |
22.15 |
|
|
$ |
22.84 |
|
|
$ |
22.15 |
|
| Cash dividends declared per
common share |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
$ |
0.07 |
|
|
$ |
0.23 |
|
|
$ |
0.20 |
|
| Total shares outstanding at
end of period |
|
16,655,347 |
|
|
16,791,027 |
|
|
17,101,954 |
|
|
16,655,347 |
|
|
17,101,954 |
|
__________________________________________________(1) Basic
and diluted net income per common share have been prepared in
accordance with the two-class method.(2) See Non-GAAP
reconciliation tables below for adjustments.
Selected Financial Ratios and Other Data
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
March 31, |
|
December 31, |
|
March 31, |
|
March 31, |
|
March 31, |
| |
|
2021 |
|
2020 |
|
2020 |
|
2021 |
|
2020 |
| Performance
ratios: (1) |
|
|
|
|
|
|
| Return on assets (ratio of net
income to average total assets) |
|
0.84 |
% |
|
1.03 |
% |
|
0.14 |
% |
|
0.83 |
% |
|
0.72 |
% |
| Return on equity (ratio of net
income to average equity) |
|
7.78 |
|
|
9.41 |
|
|
1.15 |
|
|
7.64 |
|
|
6.19 |
|
| Tax equivalent yield on earning
assets(2) |
|
3.44 |
|
|
3.57 |
|
|
4.12 |
|
|
3.47 |
|
|
4.30 |
|
| Rate paid on interest-bearing
liabilities |
|
0.54 |
|
|
0.60 |
|
|
1.16 |
|
|
0.62 |
|
|
1.25 |
|
| Tax equivalent average interest
rate spread (2) |
|
2.90 |
|
|
2.97 |
|
|
2.96 |
|
|
2.85 |
|
|
3.05 |
|
| Tax equivalent net interest
margin(2) (3) |
|
3.02 |
|
|
3.09 |
|
|
3.16 |
|
|
3.02 |
|
|
3.25 |
|
| Average interest-earning assets
to average interest-bearing liabilities |
|
127.59 |
|
|
126.99 |
|
|
121.79 |
|
|
126.60 |
|
|
120.22 |
|
| Operating expense to average
total assets |
|
3.25 |
|
|
2.88 |
|
|
2.84 |
|
|
2.98 |
|
|
2.72 |
|
| Efficiency ratio |
|
83.87 |
|
|
74.56 |
|
|
78.60 |
|
|
78.26 |
|
|
70.69 |
|
| Efficiency ratio - adjusted
(4) |
|
73.17 |
|
|
73.92 |
|
|
77.85 |
|
|
74.16 |
|
|
70.09 |
|
_____________________________(1) Ratios
are annualized where appropriate.(2) The weighted average
rate for municipal leases is adjusted for a 24% combined federal
and state tax rate since the interest from these leases is tax
exempt. (3) Net interest income divided by average
interest-earning assets.(4) See Non-GAAP reconciliation
tables below for adjustments.
| |
At or For the Three Months Ended |
| |
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
| |
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
| Asset quality
ratios: |
|
|
|
|
|
|
|
|
|
| Nonperforming assets to total
assets(1) |
0.37 |
|
% |
|
0.40 |
|
% |
|
0.40 |
% |
|
0.44 |
% |
|
0.47 |
% |
| Nonperforming loans to total
loans(1) |
0.49 |
|
|
|
0.54 |
|
|
|
0.52 |
|
|
0.58 |
|
|
0.59 |
|
| Total classified assets to
total assets |
0.76 |
|
|
|
0.74 |
|
|
|
0.73 |
|
|
0.84 |
|
|
0.86 |
|
| Allowance for credit losses to
nonperforming loans(1) |
272.64 |
|
|
|
274.05 |
|
|
|
299.11 |
|
|
176.30 |
|
|
171.40 |
|
| Allowance for credit losses to
total loans |
1.34 |
|
|
|
1.49 |
|
|
|
1.56 |
|
|
1.01 |
|
|
1.01 |
|
| Allowance for credit losses to
total gross loans excluding PPP loans(2) |
1.38 |
|
|
|
1.52 |
|
|
|
1.61 |
|
|
1.04 |
|
|
N/A |
| Net charge-offs (recoveries)
to average loans (annualized) |
(0.03 |
) |
|
|
(0.01 |
) |
|
|
0.10 |
|
|
0.21 |
|
|
0.09 |
|
| Capital
ratios: |
|
|
|
|
|
|
|
|
|
| Equity to total assets at end
of period |
11.14 |
|
% |
|
11.00 |
|
% |
|
10.90 |
% |
|
10.97 |
% |
|
11.43 |
% |
| Tangible equity to total
tangible assets(2) |
10.50 |
|
|
|
10.36 |
|
|
|
10.25 |
|
|
10.33 |
|
|
10.76 |
|
| Average equity to average
assets |
10.79 |
|
|
|
10.95 |
|
|
|
10.85 |
|
|
11.02 |
|
|
11.80 |
|
__________________________________________
(1) Nonperforming assets include
nonaccruing loans, consisting of certain restructured loans, and
REO. There were no accruing loans more than 90 days past due at the
dates indicated. At March 31, 2021, there were $5.9 million of
restructured loans included in nonaccruing loans and $7.3 million,
or 55.4% of nonaccruing loans were current on their loan payments.
(2) See Non-GAAP reconciliation tables below for
adjustments.
Average Balance Sheet Data
| |
For the Three Months Ended March 31, |
| (Dollars in thousands) |
2021 |
|
2020 |
| |
AverageBalanceOutstanding |
|
InterestEarned/Paid(2) |
|
Yield/Rate(2) |
|
AverageBalanceOutstanding |
|
InterestEarned/Paid(2) |
|
Yield/Rate(2) |
| |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
| Loans receivable(1) |
$ |
2,779,094 |
|
|
$ |
27,955 |
|
|
4.08 |
% |
|
$ |
2,669,796 |
|
|
$ |
30,086 |
|
|
4.51 |
% |
| Commercial paper and deposits
in other banks |
522,256 |
|
|
611 |
|
|
0.47 |
% |
|
378,296 |
|
|
1,794 |
|
|
1.90 |
% |
| Securities available for
sale |
153,871 |
|
|
496 |
|
|
1.31 |
% |
|
154,108 |
|
|
912 |
|
|
2.37 |
% |
| Other interest-earning
assets(3) |
39,184 |
|
|
585 |
|
|
6.05 |
% |
|
37,877 |
|
|
550 |
|
|
5.81 |
% |
|
Total interest-earning assets |
3,494,405 |
|
|
29,647 |
|
|
3.44 |
% |
|
3,240,077 |
|
|
33,342 |
|
|
4.12 |
% |
| Other assets |
258,858 |
|
|
|
|
|
|
265,139 |
|
|
|
|
|
|
Total assets |
$ |
3,753,263 |
|
|
|
|
|
|
$ |
3,505,216 |
|
|
|
|
|
| Liabilities and
equity: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing checking
accounts |
637,381 |
|
|
391 |
|
|
0.25 |
% |
|
451,335 |
|
|
412 |
|
|
0.36 |
% |
| Money market accounts |
907,228 |
|
|
373 |
|
|
0.17 |
% |
|
792,313 |
|
|
1,916 |
|
|
0.97 |
% |
| Savings accounts |
212,809 |
|
|
39 |
|
|
0.08 |
% |
|
159,641 |
|
|
50 |
|
|
0.12 |
% |
| Certificate accounts |
516,221 |
|
|
1,193 |
|
|
0.94 |
% |
|
783,758 |
|
|
3,593 |
|
|
1.83 |
% |
|
Total interest-bearing deposits |
2,273,639 |
|
|
1,996 |
|
|
0.36 |
% |
|
2,187,047 |
|
|
5,971 |
|
|
1.09 |
% |
| Borrowings |
465,111 |
|
|
1,632 |
|
|
1.42 |
% |
|
473,319 |
|
|
1,757 |
|
|
1.48 |
% |
| Total
interest-bearing liabilities |
2,738,750 |
|
|
3,628 |
|
|
0.54 |
% |
|
2,660,366 |
|
|
7,728 |
|
|
1.16 |
% |
| Noninterest-bearing
deposits |
553,045 |
|
|
|
|
|
|
342,581 |
|
|
|
|
|
| Other liabilities |
56,655 |
|
|
|
|
|
|
88,725 |
|
|
|
|
|
|
Total liabilities |
3,348,450 |
|
|
|
|
|
|
3,091,672 |
|
|
|
|
|
| Stockholders' equity |
404,813 |
|
|
|
|
|
|
413,544 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,753,263 |
|
|
|
|
|
|
$ |
3,505,216 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net earning assets |
$ |
755,655 |
|
|
|
|
|
|
$ |
579,711 |
|
|
|
|
|
| Average interest-earning
assets to |
|
|
|
|
|
|
|
|
|
|
|
|
average interest-bearing liabilities |
127.59 |
% |
|
|
|
|
|
121.79 |
% |
|
|
|
|
| Tax-equivalent: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
26,019 |
|
|
|
|
|
|
$ |
25,614 |
|
|
|
|
Interest rate spread |
|
|
|
|
2.90 |
% |
|
|
|
|
|
2.96 |
% |
|
Net interest margin(4) |
|
|
|
|
3.02 |
% |
|
|
|
|
|
3.16 |
% |
| Non-tax-equivalent: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
25,693 |
|
|
|
|
|
|
$ |
25,309 |
|
|
|
|
Interest rate spread |
|
|
|
|
2.87 |
% |
|
|
|
|
|
2.92 |
% |
|
Net interest margin(4) |
|
|
|
|
2.98 |
% |
|
|
|
|
|
3.12 |
% |
__________________(1) The average loans
receivable, net balances include loans held for sale and
nonaccruing loans.(2) Interest income used in the average
interest earned and yield calculation includes the tax equivalent
adjustment of $326 and $305 for the three months ended March 31,
2021 and 2020, respectively, calculated based on a combined federal
and state tax rate of 24%.(3) The average other
interest-earning assets consist of FRB stock, FHLB stock, and SBIC
investments. (4) Net interest income divided by average
interest-earning assets.
| |
For the Nine Months Ended March 31, |
| (Dollars in thousands) |
2021 |
|
2020 |
| |
AverageBalanceOutstanding |
|
InterestEarned/Paid(2) |
|
Yield/Rate(2) |
|
AverageBalanceOutstanding |
|
InterestEarned/Paid(2) |
|
Yield/Rate(2) |
| |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
| Loans receivable(1) |
$ |
2,826,886 |
|
|
$ |
85,505 |
|
|
4.03 |
% |
|
$ |
2,734,249 |
|
|
$ |
95,045 |
|
|
4.63 |
% |
| Commercial paper and deposits in
other banks |
454,609 |
|
|
2,106 |
|
|
0.62 |
% |
|
362,598 |
|
|
5,959 |
|
|
2.19 |
% |
| Securities available for
sale |
131,332 |
|
|
1,528 |
|
|
1.55 |
% |
|
152,798 |
|
|
2,901 |
|
|
2.53 |
% |
| Other interest-earning
assets(3) |
39,140 |
|
|
1,729 |
|
|
5.88 |
% |
|
42,662 |
|
|
2,154 |
|
|
6.73 |
% |
|
Total interest-earning assets |
3,451,967 |
|
|
90,868 |
|
|
3.51 |
% |
|
3,292,307 |
|
|
106,059 |
|
|
4.30 |
% |
| Other assets |
256,026 |
|
|
|
|
|
|
266,097 |
|
|
|
|
|
|
Total assets |
$ |
3,707,993 |
|
|
|
|
|
|
$ |
3,558,404 |
|
|
|
|
|
| Liabilities and
equity: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing checking
accounts |
593,815 |
|
|
1,142 |
|
|
0.26 |
% |
|
449,560 |
|
|
1,105 |
|
|
0.33 |
% |
| Money market accounts |
860,170 |
|
|
1,337 |
|
|
0.21 |
% |
|
765,492 |
|
|
5,760 |
|
|
1.00 |
% |
| Savings accounts |
206,478 |
|
|
114 |
|
|
0.07 |
% |
|
166,711 |
|
|
153 |
|
|
0.12 |
% |
| Certificate accounts |
594,565 |
|
|
5,003 |
|
|
1.12 |
% |
|
769,073 |
|
|
11,127 |
|
|
1.93 |
% |
|
Total interest-bearing deposits |
2,255,028 |
|
|
7,596 |
|
|
0.45 |
% |
|
2,150,836 |
|
|
18,145 |
|
|
1.12 |
% |
| Borrowings |
471,716 |
|
|
5,007 |
|
|
1.41 |
% |
|
587,822 |
|
|
7,619 |
|
|
1.73 |
% |
|
Total interest-bearing
liabilities |
2,726,744 |
|
|
12,603 |
|
|
0.62 |
% |
|
2,738,658 |
|
|
25,764 |
|
|
1.25 |
% |
| Noninterest-bearing
deposits |
522,406 |
|
|
|
|
|
|
336,496 |
|
|
|
|
|
| Other liabilities |
56,141 |
|
|
|
|
|
|
70,175 |
|
|
|
|
|
|
Total liabilities |
3,305,291 |
|
|
|
|
|
|
3,145,329 |
|
|
|
|
|
| Stockholders' equity |
402,702 |
|
|
|
|
|
|
413,075 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,707,993 |
|
|
|
|
|
|
$ |
3,558,404 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net earning assets |
$ |
725,223 |
|
|
|
|
|
|
$ |
553,649 |
|
|
|
|
|
| Average interest-earning
assets to |
|
|
|
|
|
|
|
|
|
|
|
|
average interest-bearing liabilities |
126.60 |
% |
|
|
|
|
|
120.22 |
% |
|
|
|
|
| Tax-equivalent: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
78,265 |
|
|
|
|
|
|
$ |
80,295 |
|
|
|
|
Interest rate spread |
|
|
|
|
2.89 |
% |
|
|
|
|
|
3.05 |
% |
|
Net interest margin(4) |
|
|
|
|
3.02 |
% |
|
|
|
|
|
3.25 |
% |
| Non-tax-equivalent: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
77,323 |
|
|
|
|
|
|
$ |
79,416 |
|
|
|
|
Interest rate spread |
|
|
|
|
2.85 |
% |
|
|
|
|
|
3.01 |
% |
|
Net interest margin(4) |
|
|
|
|
2.98 |
% |
|
|
|
|
|
3.22 |
% |
__________________(1) The average loans
receivable, net balances include loans held for sale and
nonaccruing loans.(2) Interest income used in the average
interest earned and yield calculation includes the tax equivalent
adjustment of $942 and $879 for the nine months ended March 31,
2021 and 2020, respectively, calculated based on a combined federal
and state tax rate of 24%.(3) The average other
interest-earning assets consist of FRB stock, FHLB stock, and SBIC
investments. (4) Net interest income divided by average
interest-earning assets.
Loans
| (Dollars in thousands) |
March 31, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
| Commercial loans: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
1,088,178 |
|
|
|
$ |
1,056,971 |
|
|
|
$ |
1,068,255 |
|
|
|
$ |
1,052,906 |
|
|
|
$ |
990,693 |
|
|
|
Construction and development |
162,820 |
|
|
|
172,892 |
|
|
|
216,757 |
|
|
|
215,934 |
|
|
|
249,714 |
|
|
|
Commercial and industrial |
140,579 |
|
|
|
138,761 |
|
|
|
148,413 |
|
|
|
154,825 |
|
|
|
164,539 |
|
|
|
Equipment finance |
291,950 |
|
|
|
272,761 |
|
|
|
250,813 |
|
|
|
229,239 |
|
|
|
198,962 |
|
|
|
Municipal leases |
129,141 |
|
|
|
128,549 |
|
|
|
130,337 |
|
|
|
127,987 |
|
|
|
115,992 |
|
|
|
PPP loans |
73,090 |
|
|
|
64,845 |
|
|
|
80,816 |
|
|
|
80,697 |
|
|
|
— |
|
|
| Total commercial loans |
1,885,758 |
|
|
|
1,834,779 |
|
|
|
1,895,391 |
|
|
|
1,861,588 |
|
|
|
1,719,900 |
|
|
| Retail consumer loans |
|
|
|
|
|
|
|
|
|
|
One-to-four family |
430,001 |
|
|
|
452,421 |
|
|
|
459,285 |
|
|
|
473,693 |
|
|
|
487,777 |
|
|
|
HELOCs - originated |
131,867 |
|
|
|
125,397 |
|
|
|
135,885 |
|
|
|
137,447 |
|
|
|
144,804 |
|
|
|
HELOCs - purchased |
46,086 |
|
|
|
58,640 |
|
|
|
61,535 |
|
|
|
71,781 |
|
|
|
82,232 |
|
|
|
Construction and land/lots |
68,118 |
|
|
|
75,108 |
|
|
|
78,799 |
|
|
|
81,859 |
|
|
|
80,765 |
|
|
|
Indirect auto finance |
119,656 |
|
|
|
122,947 |
|
|
|
128,466 |
|
|
|
132,303 |
|
|
|
135,449 |
|
|
|
Consumer |
8,667 |
|
|
|
9,332 |
|
|
|
10,035 |
|
|
|
10,259 |
|
|
|
11,576 |
|
|
| Total retail consumer
loans |
804,395 |
|
|
|
843,845 |
|
|
|
874,005 |
|
|
|
907,342 |
|
|
|
942,603 |
|
|
| Total loans |
2,690,153 |
|
|
|
2,678,624 |
|
|
|
2,769,396 |
|
|
|
2,768,930 |
|
|
|
2,662,503 |
|
|
|
Deferred loan costs, net (1) |
— |
|
|
|
— |
|
|
|
— |
|
|
|
189 |
|
|
|
1,021 |
|
|
| Total loans, net of deferred
loan costs |
2,690,153 |
|
|
|
2,678,624 |
|
|
|
2,769,396 |
|
|
|
2,769,119 |
|
|
|
2,663,524 |
|
|
|
Allowance for credit losses |
(36,059 |
) |
|
|
(39,844 |
) |
|
|
(43,132 |
) |
|
|
(28,072 |
) |
|
|
(26,850 |
) |
|
| Loans, net |
$ |
2,654,094 |
|
|
|
$ |
2,638,780 |
|
|
|
$ |
2,726,264 |
|
|
|
$ |
2,741,047 |
|
|
|
$ |
2,636,674 |
|
|
___________(1) In accordance with the
adoption of ASU 2016-13, the above table reflects the loan
portfolio at the amortized cost basis for all periods in fiscal
2021.
Deposits
| (Dollars in thousands) |
March 31, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
| Core deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing accounts |
$ |
528,711 |
|
|
$ |
469,998 |
|
|
$ |
458,157 |
|
|
$ |
429,901 |
|
|
$ |
322,812 |
|
|
NOW accounts |
727,240 |
|
|
654,960 |
|
|
608,968 |
|
|
582,299 |
|
|
496,561 |
|
|
Money market accounts |
927,519 |
|
|
882,366 |
|
|
826,970 |
|
|
836,738 |
|
|
801,424 |
|
|
Savings accounts |
221,537 |
|
|
209,699 |
|
|
202,787 |
|
|
197,676 |
|
|
169,792 |
|
| Total core deposits |
2,405,007 |
|
|
2,217,023 |
|
|
2,096,882 |
|
|
2,046,614 |
|
|
1,790,589 |
|
| Certificates of deposit |
503,471 |
|
|
526,246 |
|
|
645,164 |
|
|
739,142 |
|
|
764,198 |
|
| Total deposits |
$ |
2,908,478 |
|
|
$ |
2,743,269 |
|
|
$ |
2,742,046 |
|
|
$ |
2,785,756 |
|
|
$ |
2,554,787 |
|
Non-GAAP Reconciliations
In addition to results presented in accordance
with generally accepted accounting principles utilized in the
United States ("GAAP"), this earnings release contains certain
non-GAAP financial measures, which include: the efficiency ratio;
tangible book value; tangible book value per share; tangible equity
to tangible assets ratio; and the ratio of the allowance for credit
losses to total loans excluding PPP loans. The Company believes
these non-GAAP financial measures and ratios as presented are
useful for both investors and management to understand the effects
of certain items and provide an alternative view of its performance
over time and in comparison to its competitors. These non-GAAP
measures have inherent limitations, are not required to be
uniformly applied and are not audited. They should not be
considered in isolation or as a substitute for total stockholders'
equity or operating results determined in accordance with GAAP.
These non-GAAP measures may not be comparable to similarly titled
measures reported by other companies.
Set forth below is a reconciliation to GAAP of the Company's
efficiency ratio:
| |
|
Three Months Ended |
|
Nine Months Ended |
| (Dollars in thousands) |
|
March
31, |
|
December
31, |
|
March
31, |
|
March
31, |
|
March
31, |
| |
|
2021 |
|
2020 |
|
2020 |
|
2021 |
|
2020 |
|
Noninterest expense |
|
$ |
30,506 |
|
|
$ |
26,443 |
|
|
$ |
24,903 |
|
|
$ |
82,949 |
|
|
$ |
72,477 |
|
| Less: prepayment penalty on
borrowings |
|
3,656 |
|
|
— |
|
|
— |
|
|
3,656 |
|
|
— |
|
| Noninterest expense |
|
$ |
26,850 |
|
|
$ |
26,443 |
|
|
$ |
24,903 |
|
|
$ |
79,293 |
|
|
$ |
72,477 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
$ |
25,693 |
|
|
$ |
26,122 |
|
|
$ |
25,309 |
|
|
$ |
77,324 |
|
|
$ |
79,416 |
|
| Plus noninterest income |
|
10,678 |
|
|
9,344 |
|
|
6,375 |
|
|
28,661 |
|
|
23,109 |
|
| Plus tax equivalent
adjustment |
|
326 |
|
|
305 |
|
|
305 |
|
|
942 |
|
|
879 |
|
| Net interest income plus
noninterest income – as adjusted |
|
$ |
36,697 |
|
|
$ |
35,771 |
|
|
$ |
31,989 |
|
|
$ |
106,927 |
|
|
$ |
103,404 |
|
| Efficiency ratio - adjusted |
|
73.17 |
% |
|
73.92 |
% |
|
77.85 |
% |
|
74.16 |
% |
|
70.09 |
% |
| Efficiency ratio |
|
83.87 |
% |
|
74.56 |
% |
|
78.60 |
% |
|
78.26 |
% |
|
70.69 |
% |
Set forth below is a reconciliation to GAAP of
tangible book value and tangible book value per share:
| |
|
As of |
| (Dollars in thousands, except per
share data) |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
| |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
Total stockholders' equity |
|
$ |
406,452 |
|
|
$ |
404,724 |
|
|
$ |
400,351 |
|
|
$ |
408,263 |
|
|
$ |
405,440 |
|
| Less: goodwill, core deposit
intangibles, net of taxes |
|
26,002 |
|
|
26,130 |
|
|
26,285 |
|
|
26,468 |
|
|
26,701 |
|
| Tangible book value (1) |
|
$ |
380,450 |
|
|
$ |
378,594 |
|
|
$ |
374,066 |
|
|
$ |
381,795 |
|
|
$ |
378,739 |
|
| Common shares outstanding |
|
16,655,347 |
|
|
16,791,027 |
|
|
17,020,724 |
|
|
17,021,357 |
|
|
17,101,954 |
|
| Tangible book value per
share |
|
$ |
22.84 |
|
|
$ |
22.55 |
|
|
$ |
21.98 |
|
|
$ |
22.43 |
|
|
$ |
22.15 |
|
| Book value per share |
|
$ |
24.40 |
|
|
$ |
24.10 |
|
|
$ |
23.52 |
|
|
$ |
23.99 |
|
|
$ |
23.71 |
|
(1) Tangible book value is equal to total
stockholders' equity less goodwill and core deposit intangibles,
net of related deferred tax liabilities.
Set forth below is a reconciliation to GAAP of tangible equity
to tangible assets:
| |
|
As of |
| (Dollars in thousands) |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
| |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
Tangible equity(1) |
|
$ |
380,450 |
|
|
$ |
378,594 |
|
|
$ |
374,066 |
|
|
$ |
381,795 |
|
|
$ |
378,739 |
|
| Total assets |
|
3,648,613 |
|
|
3,679,971 |
|
|
3,674,034 |
|
|
3,722,852 |
|
|
3,548,033 |
|
| Less: goodwill, core deposit
intangibles, net of taxes |
|
26,002 |
|
|
26,130 |
|
|
26,285 |
|
|
26,468 |
|
|
26,701 |
|
| Total tangible assets(2) |
|
$ |
3,622,611 |
|
|
$ |
3,653,841 |
|
|
$ |
3,647,749 |
|
|
$ |
3,696,384 |
|
|
$ |
3,521,332 |
|
| Tangible equity to tangible
assets |
|
10.50 |
% |
|
10.36 |
% |
|
10.25 |
% |
|
10.33 |
% |
|
10.76 |
% |
(1) Tangible equity (or tangible book
value) is equal to total stockholders' equity less goodwill and
core deposit intangibles, net of related deferred tax
liabilities.(2) Total tangible assets is equal to total
assets less goodwill and core deposit intangibles, net of related
deferred tax liabilities.
Set forth below is a reconciliation to GAAP of
the allowance for credit losses to total loans (excluding net
deferred loan costs) and the allowance for credit losses as
adjusted to exclude PPP loans:
| |
|
As of |
| (Dollars in thousands) |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
| |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
Total gross loans receivable (GAAP) |
|
$ |
2,690,153 |
|
|
$ |
2,678,624 |
|
|
$ |
2,769,396 |
|
|
$ |
2,768,930 |
|
|
$ |
2,662,503 |
|
| Less: PPP loans (1) |
|
73,090 |
|
|
64,845 |
|
|
80,816 |
|
|
80,697 |
|
|
— |
|
| Adjusted loans (non-GAAP) |
|
$ |
2,617,063 |
|
|
$ |
2,613,779 |
|
|
$ |
2,688,580 |
|
|
$ |
2,688,233 |
|
|
$ |
2,662,503 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses
(GAAP) |
|
$ |
36,059 |
|
|
$ |
39,844 |
|
|
$ |
43,132 |
|
|
$ |
28,072 |
|
|
$ |
26,850 |
|
| Allowance for credit losses /
Adjusted loans (non-GAAP) |
|
1.38 |
% |
|
1.52 |
% |
|
1.60 |
% |
|
1.04 |
% |
|
1.01 |
% |
(1) PPP loans are fully guaranteed loans by the U.S,
government.
HomeTrust Bancshares (NASDAQ:HTBI)
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