ASHEVILLE, N.C. - HomeTrust Bancshares, Inc. (NASDAQ: HTBI), the parent company of HomeTrust Bank, disclosed its financial results for the second quarter ending June 30, 2024, alongside its decision to uphold the quarterly cash dividend. The bank reported a decrease in net income to $12.4 million for the quarter, down from $15.1 million in the previous quarter. Diluted earnings per share (EPS) also dropped to $0.73 from $0.88.
The bank's net interest margin improved slightly to 4.08% from 4.02%, while the provision for credit losses rose significantly to $4.3 million, up from $1.2 million in the prior quarter. This increase reflects an allowance build for potential credit losses on individual equipment finance and Small Business Administration (SBA) loans.
Despite the decline in net income, HomeTrust Bancshares maintained its quarterly cash dividend at $0.11 per share, totaling $1.9 million for the quarter, consistent with the previous period.
For the six-month period ending June 30, 2024, the bank's net income saw an increase to $27.5 million from $21.8 million for the same period in the previous year. Diluted EPS rose to $1.61 from $1.30, and the annualized return on assets (ROA) and return on equity (ROE) also showed improvements. The net interest margin for the six-month period was 4.05%, down from 4.43% in the previous year, indicating a tighter spread between interest income earned and interest paid.
The bank's asset quality metrics revealed an increase in nonperforming assets to 0.54% of total assets, up from 0.41% at the end of December 2023. The allowance for loan and lease losses was 1.33% of total loans as of June 30, 2024.
HomeTrust Bancshares' President and CEO, Hunter Westbrook, stated that the results continue to reflect the bank's goal of high performance, with net interest margin remaining above 4.00%. Westbrook also highlighted the bank's recognition as a 2024 Best Place to Work in South Carolina and a 2024 Most Loved Workplace by Newsweek.
The quarterly cash dividend of $0.11 per common share is payable on August 29, 2024, to shareholders of record as of August 15, 2024. This announcement is based on a press release statement from HomeTrust Bancshares, Inc.
In other recent news, HomeTrust Bancshares, Inc., is gearing up to announce its second quarter earnings for fiscal year 2024, as disclosed in a recent 8-K filing with the Securities and Exchange Commission. The details of this report, expected to provide key financial results and performance indicators, are eagerly awaited by both investors and analysts.
In parallel, HomeTrust Bancshares has witnessed a significant leadership change with the appointment of Charles "Chuck" Sivley as the new Chief Technology Officer (CTO). Sivley, backed by a robust three-decade career in technology, will guide the bank's technological direction and strategy, focusing on the reliability, performance, and scalability of its technology infrastructure.
He replaces Marty T. Caywood, who is stepping down after a long 29-year tenure with the company. Sivley's previous roles include CIO positions at American National Bank, Highlands Union Bank, and First State Bank of the Southeast. These recent developments align with HomeTrust Bancshares' ongoing efforts to stay competitive in the evolving landscape of the banking industry.
InvestingPro Insights
HomeTrust Bancshares, Inc. (NASDAQ: HTBI) has recently shared its financial performance for the second quarter, showcasing a commitment to shareholder returns amidst a challenging environment. In light of these developments, investors may find the following insights from InvestingPro particularly informative:
The company has demonstrated a consistent dedication to its shareholders, as evidenced by a dividend increase for the sixth consecutive year. This aligns with the bank's commitment to maintaining its quarterly cash dividend, reinforcing the stability and investor confidence in HomeTrust Bancshares' financial practices.
Moreover, analysts have a positive outlook on the company's profitability, projecting a profitable year ahead. These InvestingPro Tips could be crucial for investors considering long-term income potential and the bank's future financial health.
From a valuation perspective, HomeTrust Bancshares is trading at a low P/E ratio of 9.34, which may suggest an attractive entry point relative to near-term earnings growth. Moreover, the PEG ratio stands at a mere 0.13 for the last twelve months as of Q1 2024, potentially indicating that the stock is undervalued given its earnings growth rate.
With a price to book ratio of 1.19, the company's market value is closely aligned with its book value, which could appeal to value-oriented investors. The bank's revenue growth, at 22.41% for the last twelve months as of Q1 2024, further underscores its strong top-line performance.
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