HomeTrust Bancshares, Inc. [HTBI] Filings

10-Q 1 htbi-20220331.htm 10-Q htbi-20220331

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to ________

Commission file number: 001-35593

HOMETRUST BANCSHARES, INC.

(Exact name of registrant as specified in its charter)


Maryland						45-5055422
(State or other jurisdiction of incorporation of organization)						(I.R.S. Employer Identification No.)

10 Woodfin Street, Asheville, North Carolina 28801

(Address of principal executive offices; Zip Code)

(828) 259-3939

(Registrant's telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01 per share	HTBI	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 and 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐

Accelerated filer ☒

Non-accelerated filer ☐

Smaller reporting company ☐

Emerging growth company ☐


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 15,720,503 shares of common stock, par value of $.01 per share, issued and outstanding as of May 4, 2022.

HOMETRUST BANCSHARES, INC. AND SUBSIDIARIES

10-Q

TABLE OF CONTENTS


			Page Number
PART I FINANCIAL INFORMATION

Item 1.	Financial Statements

		Consolidated Balance Sheets (Unaudited) at March 31, 2022 and June 30, 2021	3

		Consolidated Statements of Income (Unaudited) for the Three and Nine Months Ended March 31, 2022 and 2021	4

		Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended March 31, 2022 and 2021	5

		Consolidated Statements of Changes in Stockholders' Equity (Unaudited) for the Three and Nine Months Ended March 31, 2022 and 2021	6

		Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended March 31, 2022 and 2021	8

		Notes to Consolidated Financial Statements	10

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		34

Item 3.	Quantitative and Qualitative Disclosures about Market Risk		47

Item 4.	Controls and Procedures		47

PART II OTHER INFORMATION

Item 1.	Legal Proceedings		47

Item 1A.	Risk Factors		47

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		47

Item 3.	Defaults Upon Senior Securities		48

Item 4.	Mine Safety Disclosures		48

Item 5	Other Information		48

Item 6.	Exhibits		48

SIGNATURES			50

Glossary of Defined Terms

The following items 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
CARES Act						Coronavirus Aid, Relief, and Economic Security Act of 2020
CD						Certificate of Deposit
CDA						Collateral Dependent Asset
CECL						Current Expected Credit Losses
CET1						Common Equity Tier 1
COVID-19						Coronavirus Disease 2019
CPI						Consumer Price Index
DCF						Discounted Cash Flow
ECL						Expected Credit Losses
EPS						Earnings Per Share
ESOP						Employee Stock Ownership Plan
FASB						Financial Accounting Standards Board
FDIC						Federal Deposit Insurance Corporation
FHLB						Federal Home Loan Bank
FRB						Federal Reserve Bank of Richmond
GAAP						Generally Accepted Accounting Principles in the United States
GSE						Government-Sponsored Enterprises
HELOC						Home Equity Line of Credit
LIBOR						London Interbank Offered Rate
MBS						Mortgage-Backed Securities
NCCOB						North Carolina Office of the Commissioner of Banks
OTTI						Other Than Temporary Impairment
PCD						Purchased Financial Assets with Credit Deterioration
PCI						Purchase Credit Impaired
PPP						Paycheck Protection Program
REO						Real Estate Owned
ROU						Right of Use
RSU						Restricted Stock Unit
SEC						Securities and Exchange Commission
SBA						U.S. Small Business Administration
SBIC						Small Business Investment Companies
TDR						Troubled Debt Restructuring

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Balance Sheets

(Dollars in thousands, except per share data)


	(Unaudited)
	March 31, 2022		June 30, 2021
Assets
Cash	$	19,783	$	22,312
Interest-bearing deposits	32,267		28,678
Cash and cash equivalents	52,050		50,990
Commercial paper	312,918		189,596
Certificates of deposit in other banks	28,125		40,122
Debt securities available for sale, at fair value (amortized cost of $108,130 and $154,493 at March 31, 2022 and June 30, 2021, respectively)	106,315		156,459
Other investments, at cost	23,040		23,710
Loans held for sale	85,263		93,539
Total loans, net of deferred loan fees and costs	2,699,538		2,733,267
Allowance for credit losses on loans	(31,034)		(35,468)
Loans, net	2,668,504		2,697,799
Premises and equipment, net	69,629		70,909
Accrued interest receivable	7,980		7,933
REO	—		188
Deferred income taxes, net	12,494		16,901
BOLI	94,740		93,108
Goodwill	25,638		25,638
Core deposit intangibles, net	135		343
Other assets	54,954		57,488
Total Assets	$	3,541,785	$	3,524,723
Liabilities and stockholders' equity
Liabilities
Deposits	$	3,059,157	$	2,955,541
Borrowings	30,000		115,000

Other liabilities	57,497		57,663
Total liabilities	3,146,654		3,128,204
Commitments and Contingencies - See Note 9
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, 15,978,262 shares issued and outstanding at March 31, 2022; 16,636,483 at June 30, 2021	160		167
Additional paid in capital	136,181		160,582
Retained earnings	265,609		240,075
Unearned ESOP shares	(5,422)		(5,819)
Accumulated other comprehensive income (loss)	(1,397)		1,514
Total stockholders' equity	395,131		396,519
Total liabilities and stockholders' equity	$	3,541,785	$	3,524,723

The accompanying notes are an integral part of these consolidated financial statements.

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Income

(Dollars in thousands, except per share data)


	(Unaudited)
	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Interest and dividend income
Loans	$	26,616	$	27,629	$	81,440	$	84,564
Commercial paper and interest-bearing deposits	563		611		1,362		2,106
Debt securities available for sale	384		496		1,319		1,528
Other investments	632		585		1,867		1,729
Total interest and dividend income	28,195		29,321		85,988		89,927
Interest expense
Deposits	1,151		1,996		4,028		7,596
Borrowings	4		1,632		45		5,007
Total interest expense	1,155		3,628		4,073		12,603
Net interest income	27,040		25,693		81,915		77,324
Provision (benefit) for credit losses	(45)		(4,100)		(4,005)		(6,180)
Net interest income after provision (benefit) for credit losses	27,085		29,793		85,920		83,504
Noninterest income
Service charges and fees on deposit accounts	2,216		2,194		7,101		6,707
Loan income and fees	752		636		2,536		1,679
Gain on sale of loans held for sale	2,969		4,881		10,927		11,929
BOLI income	492		508		1,500		1,551


Operating lease income	1,661		1,432		4,920		4,107
Other	857		1,027		2,496		2,688
Total noninterest income	8,947		10,678		29,480		28,661
Noninterest expense
Salaries and employee benefits	14,730		15,784		44,882		46,691
Occupancy expense, net	2,483		2,456		7,201		7,010
Computer services	2,455		2,581		7,148		7,108
Telephone, postage, and supplies	686		812		2,133		2,345
Marketing and advertising	573		319		2,110		971
Deposit insurance premiums	412		363		1,280		1,361
REO related expense, net	220		84		478		462
Core deposit intangible amortization	50		165		208		605

Prepayment penalties on borrowings	—		3,656		—		3,656
Other	4,190		4,286		12,285		12,740
Total noninterest expense	25,799		30,506		77,725		82,949
Net income before income taxes	10,233		9,965		37,675		29,216
Income tax expense	2,210		2,096		8,047		6,133
Net income	$	8,023	$	7,869	$	29,628	$	23,083
Per share data:
Net income per common share:
Basic	$	0.51	$	0.49	$	1.87	$	1.42
Diluted	$	0.51	$	0.48	$	1.84	$	1.40

Average shares outstanding:
Basic	15,523,813		15,979,590		15,666,093		16,139,059
Diluted	15,793,012		16,485,718		15,997,377		16,339,130

The accompanying notes are an integral part of these consolidated financial statements.

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Comprehensive Income

(Dollars in thousands)


	(Unaudited)
	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Net income	$	8,023	$	7,869	$	29,628	$	23,083
Other comprehensive loss
Unrealized holding losses on debt securities available for sale
Losses arising during the period	(2,595)		(839)		(3,781)		(724)
Deferred income tax benefit	598		193		870		166


Total other comprehensive loss	$	(1,997)	$	(646)	(2,911)		(558)
Comprehensive income	$	6,026	$	7,223	$	26,717	$	22,525

The accompanying notes are an integral part of these consolidated financial statements.

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders' Equity

(Dollars in thousands)


	(Unaudited)
	Three Months Ended March 31, 2022
	Common Stock			Additional Paid In Capital		Retained Earnings		Unearned ESOP Shares		Accumulated Other Comprehensive Income		Total Stockholders' Equity
	Shares	Amount
Balance at December 31, 2021	16,303,461	$	163	$	147,552	$	258,986	$	(5,555)	$	600	$	401,746
Net income	—	—		—		8,023		—		—		8,023

Cash dividends declared on common stock, $0.09/ common share	—	—		—		(1,400)		—		—		(1,400)
Common stock repurchased	(419,931)	(4)		(12,911)		—		—		—		(12,915)
Forfeited restricted stock	(2,600)	—		—		—		—		—		—
Retired stock	(8,627)	—		(270)		—		—		—		(270)

Granted restricted stock	40,123	—		—		—		—		—		—
Exercised stock options	65,836	1		1,038		—		—		—		1,039
Share-based compensation expense	—	—		507		—		—		—		507
ESOP compensation expense	—	—		265		—		133		—		398
Other comprehensive loss	—	—		—		—		—		(1,997)		(1,997)
Balance at March 31, 2022	15,978,262	$	160	$	136,181	$	265,609	$	(5,422)	$	(1,397)	$	395,131


	(Unaudited)
	Nine Months Ended March 31, 2022
	Common Stock			Additional Paid In Capital		Retained Earnings		Unearned ESOP Shares		Accumulated Other Comprehensive Income		Total Stockholders' Equity
	Shares	Amount
Balance at June 30, 2021	16,636,483	$	167	$	160,582	$	240,075	$	(5,819)	$	1,514	$	396,519
Net income	—	—		—		29,628		—		—		29,628

Cash dividends declared on common stock, $0.26/common share	—	—		—		(4,094)		—		—		(4,094)
Common stock repurchased	(1,095,763)	(11)		(32,307)		—		—		—		(32,318)
Forfeited restricted stock	(12,000)	—		—		—		—		—		—
Retired stock	(11,335)	—		(345)		—		—		—		(345)
Granted restricted stock	40,123	—		—		—		—		—		—
Stock issued for RSUs	7,118	—		—		—		—		—		—
Exercised stock options	413,636	4		6,077		—		—		—		6,081
Share-based compensation expense	—	—		1,407		—		—		—		1,407
ESOP compensation expense	—	—		767		—		397		—		1,164
Other comprehensive loss	—	—		—		—		—		(2,911)		(2,911)
Balance at March 31, 2022	15,978,262	$	160	$	136,181	$	265,609	$	(5,422)	$	(1,397)	$	395,131

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders' Equity

(Dollars in thousands)


	(Unaudited)
	Three Months Ended March 31, 2021
	Common Stock			Additional Paid In Capital		Retained Earnings		Unearned ESOP Shares		Accumulated Other Comprehensive Income		Total Stockholders' Equity
	Shares	Amount
Balance at December 31, 2020	16,791,027	$	168	$	166,352	$	242,182	$	(6,083)	$	2,105	$	404,724
Net income	—	—		—		7,869		—		—		7,869

Cash dividends declared on common stock, $0.08/common share	—	—		—		(1,284)		—		—		(1,284)
Common stock repurchased	(289,333)	(3)		(6,541)		—		—		—		(6,544)
Forfeited restricted stock		—		—		—		—		—		—
Retired stock	(8,473)	—		(195)		—		—		—		(195)

Granted restricted stock	43,260	—		—		—		—		—

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10-Q	[2017-05-10]
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10-K	[2015-09-11]
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10-K	[2014-09-15]
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10-Q	[2013-11-12]
10-K	[2013-09-13]
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10-K	[2012-09-28]
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