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htbi-20220727
0001538263FALSE00015382632022-07-272022-07-27

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 27, 2022

HOMETRUST BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
 
Maryland 001-35593 45-5055422
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
10 Woodfin Street, Asheville, North Carolina
 28801
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code: (828) 259-3939
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities Registered Pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareHTBIThe NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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.☐



Item 2.02  Results of Operations and Financial Condition
 
On July 27, 2022, HomeTrust Bancshares, Inc., (the "Company") the holding company for HomeTrust Bank, issued a press release reporting fourth quarter and fiscal year 2022 financial results and approval of its quarterly cash dividend. A copy of the press release, including unaudited financial information released as a part thereof, is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

 
Item 9.01  Financial Statements and Exhibits
 
(d)           Exhibits
 
Press release dated July 27, 2022



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HOMETRUST BANCSHARES, INC.
Date: July 27, 2022 By:/s/ Tony J. VunCannon
Tony J. VunCannon
Executive Vice President, Chief Financial Officer, Corporate Secretary and Treasurer

2
Document


https://cdn.kscope.io/0f8bb9d0df2eb7d2d423035822dfed56-htbi_imagea09.jpg
HomeTrust Bancshares, Inc. Announces Fourth Quarter and Fiscal Year 2022 Financial Results and Quarterly Dividend
ASHEVILLE, N.C., July 27, 2022 - HomeTrust Bancshares, Inc. (NASDAQ: HTBI) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the fourth quarter and fiscal year 2022 and approval of its quarterly cash dividend.
For the quarter ended June 30, 2022 compared to the corresponding quarter in the previous year:
•net income was $6.0 million compared to a net loss of $7.4 million;
•diluted earnings per share ("EPS") was $0.39 compared to a loss per share of ($0.46);
•annualized return on assets ("ROA") was 0.68% compared to (0.81)%;
•annualized return on equity ("ROE") was 6.19% compared to (7.30)%;
•net interest income was $28.9 million compared to $26.0 million;
•provision for credit losses was $3.4 million compared to a net benefit of $955,000;
•noninterest income was $9.7 million compared to $11.2 million;
•no prepayment penalties on borrowings compared to $19.0 million;
•387,196 shares of Company common stock were repurchased during the quarter at an average price of $28.49 per share;
•net loan growth was $69.8 million, or 10.3% annualized, compared to $43.1 million, or 6.4% annualized; and
•quarterly cash dividends continued at $0.09 per share totaling $1.4 million.

For the fiscal year ended June 30, 2022 compared to the previous year:
•net income was $35.7 million compared to $15.7 million;
•diluted EPS was $2.23 compared to $0.94;
•ROA was 1.01% compared to 0.42%;
•ROE was 9.00% compared to 3.88%;
•net interest income was $110.8 million compared to $103.3 million;
•provision for credit losses was a net benefit of $592,000 compared to a net benefit of $7.1 million;
•noninterest income was $39.2 million compared to $39.8 million;
•no prepayment penalties on borrowings compared to $22.7 million;
•1,482,959 shares of Company common stock were repurchased during the year at an average price of $29.23 per share; and
•net loan growth was $36.0 million, or 5.3%, compared to a decrease of $35.9 million, or 5.2%.

The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.09 per common share payable on September 1, 2022 to shareholders of record as of the close of business on August 18, 2022.
“In the fourth quarter we saw a continuation of many of the trends highlighted last quarter,” said Dana Stonestreet, Chairman and Chief Executive Officer. “We continue to be focused on opportunities for diversified loan growth, increasing loans by $69.8 million or 10.3% annualized this quarter. Once again, the upward movement in interest rates resulted in a decline in the volume of residential mortgage sales; however, we have already begun to benefit from an increase in yield on our loan and investment portfolios as our net interest margin increased by 14 basis points over the prior quarter. Our asset sensitivity and further expected rate increases by the Federal Reserve should continue to drive increases in our net interest margin.

“Beyond our organic growth, we recently partnered with a fintech which contributed to growth in the commercial and industrial loan segment, supplementing the Company’s existing partnership with a fintech specializing in HELOCs. These relationships present a unique opportunity for HomeTrust to expand the Company’s origination sources and enhance our management team’s understanding of the credit modeling approaches being deployed outside of traditional banking. We plan to continue to prudently grow these portfolios in future quarters and explore relationships with other fintechs as mutually beneficial opportunities arise.

“Lastly, as disclosed earlier this week, we were excited to announce the signing of a definitive merger agreement where HomeTrust will acquire Quantum Capital Corporation, the holding company of Quantum National Bank, a high-performing $660 million asset bank operating in the Atlanta metro area. This transaction presents a unique opportunity for HomeTrust to expand our franchise and meaningfully enhance our profitability.”

WEBSITE: WWW.HTB.COM

Contact:
Dana L. Stonestreet - Chairman and Chief Executive Officer
C. Hunter Westbrook - President and Chief Operating Officer
Tony J. VunCannon - Executive Vice President, Chief Financial Officer, Corporate Secretary and Treasurer
828-259-3939

1



Comparison of Results of Operations for the Three Months Ended June 30, 2022 and June 30, 2021

Net Income (Loss).  Net income totaled $6.0 million, or $0.39 per diluted share, for the three months ended June 30, 2022 compared to a net loss of $7.4 million, or ($0.46) per diluted share, for the three months ended June 30, 2021, an increase of $13.4 million, or 181.3%. The results for the three months ended June 30, 2022 compared to the quarter ended June 30, 2021 were positively impacted by no prepayment penalties on borrowings and $1.9 million of gains on the sale of securities available for sale, partially offset by an increase in the provision for credit losses of $4.4 million and $1.8 million in officer transition agreement expense. Details of the changes in the various components of net income (loss) are further discussed below.
Net Interest Income.  The following table presents the distribution of average assets, liabilities and equity, as well as interest income 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 June 30,
 20222021
(Dollars in thousands)Average
Balance
Outstanding
Interest
Earned/
Paid(2)
Yield/
Rate(2)
Average
Balance
Outstanding
Interest
Earned/
Paid(2)
Yield/
Rate(2)
Assets:
Interest-earning assets:
Loans receivable (1)
$2,807,969 $28,457 4.06 %$2,796,063 $27,559 3.95 %
Commercial paper295,485 852 1.16 245,234 217 0.35 
Debt securities available for sale118,075 483 1.64 157,455 496 1.26 
Other interest-earning assets(3)
92,026 628 2.74 210,480 859 1.64 
Total interest-earning assets3,313,555 30,420 3.68 3,409,232 29,131 3.43 
Other assets255,596 260,365 
Total assets3,569,151 3,669,597 
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing checking accounts$664,966 $340 0.20 %$657,748 $411 0.25 %
Money market accounts979,816 350 0.14 948,739 363 0.15 
Savings accounts235,848 42 0.07 225,385 41 0.07 
Certificate accounts485,978 500 0.41 489,155 959 0.79 
Total interest-bearing deposits2,366,608 1,232 0.21 2,321,027 1,774 0.31 
Borrowings26,761 35 0.52 251,538 1,034 1.65 
Total interest-bearing liabilities2,393,369 1,267 0.21 2,572,565 2,808 0.44 
Noninterest-bearing deposits738,734 633,841 
Other liabilities46,928 57,258 
Total liabilities3,179,031 3,263,664 
Stockholders' equity390,120 405,933 
Total liabilities and stockholders' equity3,569,151 3,669,597 
Net earning assets$920,186 $836,667 
Average interest-earning assets to average interest-bearing liabilities138.45 %132.52 %
Tax-equivalent:
Net interest income$29,153 $26,323 
Interest rate spread3.47 %2.99 %
Net interest margin(4)
3.53 %3.10 %
Non-tax-equivalent:
Net interest income$28,859 $25,998 
Interest rate spread3.43 %2.95 %
Net interest margin(4)
3.49 %3.06 %
__________________________________________
(1)The average loans receivable 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 $294 and $325 for the three months ended June 30, 2022 and 2021, 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, SBIC investments, and deposits in other banks.
(4)Net interest income divided by average interest-earning assets.

2


Total interest and dividend income for the three months ended June 30, 2022 increased $1.3 million, or 4.6%, compared to the three months ended June 30, 2021, which was driven by a $929,000, or 3.4%, increase in interest income on loans, a $635,000, or 292.6%, increase in interest income on commercial paper, partially offset by a $231,000, or 26.9%, decrease in interest income on other interest-earning assets. The overall increase in average yield on interest-earning assets was the result of rising interest rates, while the rate paid on interest-bearing liabilities has not increased as rapidly. Specific to the commercial paper and debt securities available for sale, the Company has intentionally maintained relatively short-term duration portfolios which has allowed and will continue to allow the Company to take advantage of rising rates when reinvesting the proceeds of maturing instruments.
Total interest expense for the three months ended June 30, 2022 decreased $1.5 million, or 54.9%, compared to the three months ended June 30, 2021. The decrease was driven by a $1.0 million, or 96.6%, decrease in interest expense on borrowings and a $542,000, or 30.6%, decrease in interest expense on deposits compared to the same period last year. The overall average cost of funds decreased 23 basis points compared to the same period last year primarily due to the prepayment of long-term borrowings in the prior year and reduced market rates.
The following table shows the effects that changes in average balances (volume) and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:

(Dollars in thousands)Increase/
(Decrease)
Due to		Total
Increase/
(Decrease)
VolumeRate
Interest-earning assets:
Loans receivable$117 $781 $898 
Commercial paper44 591 635 
Debt securities available for sale(124)111 (13)
Other interest-earning assets(483)252 (231)
Total interest-earning assets(446)1,735 1,289 
Interest-bearing liabilities:
Interest-bearing checking accounts5 (76)(71)
Money market accounts11 (24)(13)
Savings accounts2 (1)1 
Certificate accounts(6)(453)(459)
Borrowings(924)(75)(999)
Total interest-bearing liabilities(912)(629)(1,541)
Net increase in tax equivalent interest income$2,830 

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 ("CECL") model.

The following table presents a breakdown of the components of the provision (benefit) for credit losses:

Three Months Ended June 30,
20222021$ Change% Change
Provision (benefit) for credit losses:
Loans$2,942 $(900)$3,842 (427)%
Off-balance-sheet credit exposure566 25 541 2,164 
Commercial paper(95)(80)(15)19 
Total provision (benefit) for credit losses$3,413 $(955)$4,368 (457)%

For the quarter ended June 30, 2022, the "loans" portion of the provision for credit losses was primarily the result of the following, offset by net recoveries of $714,000 during the quarter:
•$1.2 million provision specific to fintech portfolios which have a riskier credit profile than loans originated in-house. The elevated credit risk is offset by the higher yields earned on the portfolios.
•$0.8 million provision driven by a projected worsening of the economic forecast, specifically the national unemployment rate.
•$0.8 million provision driven by loan growth, changes in the loan mix, and qualitative adjustments.
•$0.8 million provision to fully reserve a single individually evaluated commercial loan relationship where the borrower's financial performance deteriorated during the quarter.

For the quarter ended June 30, 2021, the "loans" portion of the provision for credit losses was driven by a slight improvement in the economic forecast, as more clarity was gained regarding the impact of COVID-19 upon the loan portfolio.

For both periods presented, the provision for credit losses for off-balance-sheet credit exposure was the result of loan growth and changes in the loan mix and qualitative adjustments.
3


Noninterest Income.  Noninterest income for the three months ended June 30, 2022 decreased $1.4 million, or 12.9%, when compared to the quarter ended June 30, 2021. Changes in selected components of noninterest income are discussed below:
Three Months Ended June 30,
20222021$ Change% Change
Noninterest income:
Service charges and fees on deposit accounts$2,361 $2,376 $(15)(1)%
Loan income and fees649 529 120 23 
Gain on sale of loans held for sale1,949 5,423 (3,474)(64)
BOLI income500 605 (105)(17)
Operating lease income1,472 1,494 (22)(1)
Gain on sale of debt securities available for sale1,895 — 1,895 100 
Other890 733 157 21 
Total noninterest income$9,716 $11,160 $(1,444)(13)%
•Gain on sale of loans held for sale: The decrease in the gain on sale of loans held for sale was primarily driven by a decrease in volume of residential mortgage loans and U.S. Small Business Administration ("SBA") commercial loans sold during the period as a result of rising interest rates. During the quarter ended June 30, 2022, $38.3 million of residential mortgage loans originated for sale were sold with gains of $835,000 compared to $105.6 million sold with gains of $2.8 million for the quarter ended June 30, 2021. There were $11.2 million of sales of the guaranteed portion of SBA commercial loans with gains of $904,000 in the current quarter compared to $21.4 million sold and gains of $2.4 million for the same period in the prior year. Lastly, the Company sold $22.8 million of home equity lines of credit ("HELOC") during the quarter for a gain of $210,000 compared to $13.6 million sold and gains of $164,000 in the same period last year.
•Gain on sale of debt securities available for sale: The increase in the gain was driven by the sale of seven trust preferred securities during the quarter ended June 30, 2022 which had previously been written down to zero through purchase accounting adjustments from a merger in a prior period. No other securities were sold during either period presented.

Noninterest Expense.  Noninterest expense for the three months ended June 30, 2022 decreased $20.8 million, or 43.1%, when compared to the quarter ended June 30, 2021. Changes in selected components of noninterest expense are discussed below:
Three Months Ended June 30,
20222021$ Change% Change
Noninterest expense:
Salaries and employee benefits$14,709 $16,265 $(1,556)(10)%
Occupancy expense, net2,491 2,511 (20)(1)
Computer services2,613 2,499 114 5 
Telephone, postage and supplies621 777 (156)(20)
Marketing and advertising473 655 (182)(28)
Deposit insurance premiums432 438 (6)(1)
REO related expense, net110 120 (10)(8)
Core deposit intangible amortization42 130 (88)(68)
Branch closure and restructuring expenses— 1,513 (1,513)(100)
Officer transition agreement expense1,795 — 1,795 100 
Prepayment penalties on borrowings— 19,034 (19,034)(100)
Other4,173 4,291 (118)(3)
Total noninterest expense$27,459 $48,233 $(20,774)(43)%
•Salaries and employee benefits: The decrease in salaries and employee benefits is primarily the result of branch closures and lower mortgage banking incentive pay as a result of the reduction of the volume of originations.
•Branch closure and restructuring expenses: In June 2021, the Company announced plans to close nine branches as part of its efforts to further improve profitability (occurred in September 2021), incurring $1.5 million in expenses associated with the decision. No such expenses were incurred in the current quarter.
•Officer transition agreement expense: In May 2022, the Company entered into an amended and restated employment and transition agreement with the Company's Chairman and CEO, Dana Stonestreet. As part of this agreement, the full amount of the estimated separation payment was accrued in the current quarter. No such expenses were incurred in the corresponding period in 2021.
•Prepayment penalties on borrowings: In June 2021, the Company prepaid its remaining $275 million in long-term debt, incurring a prepayment penalty of $19.0 million. No such expenses were incurred in the current quarter.

4


Income Taxes.  The amount of income tax expense is influenced by the amount of pre-tax income, the amount of tax-exempt income, changes in the statutory rate and the effect of changes in valuation allowances maintained against deferred tax benefits. Income tax expense for the three months ended June 30, 2022 increased $4.4 million as a result of taxable income in the current quarter versus a pre-tax loss in the corresponding period in the prior year. The effective tax rate for the quarter ended June 30, 2022 was 21.8%.
Comparison of Results of Operations for the Years Ended June 30, 2022 and June 30, 2021

Net Income.  Net income totaled $35.7 million, or $2.23 per diluted share, for the year ended June 30, 2022 compared to $15.7 million, or $0.94 per diluted share, for the year ended June 30, 2021, an increase of $20.0 million, or 127.5%. The results for the year ended June 30, 2022 compared to the year ended June 30, 2021 were positively impacted by higher net interest income and no prepayment penalties on borrowings, partially offset by a lower benefit for credit losses. 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 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.
 Year Ended June 30,
 20222021
(Dollars in thousands)Average
Balance
Outstanding
Interest
Earned/
Paid(2)
Yield/
Rate(2)
Average
Balance
Outstanding
Interest
Earned/
Paid(2)
Yield/
Rate(2)
Assets:
Interest-earning assets:
Loans receivable (1)
$2,809,673 $110,834 3.94 %$2,819,180 $113,065 4.01 %
Commercial paper232,676 1,721 0.74 217,457 1,206 0.55 
Debt securities available for sale122,558 1,802 1.47 137,863 2,024 1.47 
Other interest-earning assets(3)
114,458 2,988 2.61 266,783 3,705 1.39 
Total interest-earning assets3,279,365 117,345 3.58 3,441,283 120,000 3.49 
Other assets258,550 257,111 
Total assets3,537,915 3,698,394 
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing checking accounts$646,370 $1,378 0.21 %$609,754 $1,552 0.25 %
Money market accounts996,876 1,406 0.14 882,252 1,699 0.19 
Savings accounts227,452 163 0.07 211,192 155 0.07 
Certificate accounts457,186 2,313 0.51 568,284 5,964 1.05 
Total interest-bearing deposits2,327,884 5,260 0.23 2,271,482 9,370 0.41 
Borrowings43,376 80 0.18 416,822 6,041 1.45 
Total interest-bearing liabilities2,371,260 5,340 0.23 2,688,304 15,411 0.57 
Noninterest-bearing deposits724,588 550,265 
Other liabilities45,834 56,315 
Total liabilities3,141,682 3,294,884 
Stockholders' equity396,233 403,510 
Total liabilities and stockholders' equity3,537,915 3,698,394 
Net earning assets$908,105 $752,979 
Average interest-earning assets to average interest-bearing liabilities138.30 %128.01 %
Tax-equivalent:
Net interest income$112,005 $104,589 
Interest rate spread3.35 %2.92 %
Net interest margin(4)
3.42 %3.04 %
Non-tax-equivalent:
Net interest income$110,774 $103,322 
Interest rate spread3.32 %2.88 %
Net interest margin(4)
3.38 %3.00 %
__________________________________________
(1)The average loans receivable 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 $1,231 and $1,267 for the years ended June 30, 2022 and 2021, 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, SBIC investments, and deposits in other banks.
(4)Net interest income divided by average interest-earning assets.

5


Total interest and dividend income for the year ended June 30, 2022 decreased $2.6 million, or 2.2%, compared to the year ended June 30, 2021, which was driven by a $2.2 million, or 2.0%, decrease in interest income on loans, a $515,000, or 42.7%, increase in interest income on commercial paper, a $222,000, or 11.0%, decrease in interest income on debt securities available for sale, and a $718,000, or 19.4%, decrease in interest income on other interest-earning assets.
Total interest expense for the year ended June 30, 2022 decreased $10.1 million, or 65.3%, compared to the year ended June 30, 2021. The decrease was driven by a $6.0 million, or 98.7%, decrease in interest expense on borrowings and a $4.1 million, or 43.9%, decrease in interest expense on deposits compared to the same period last year. The overall average cost of funds decreased 34 basis points compared to the same period last year primarily due to the prepayment of long-term borrowings in the prior year and reduced market rates.
The following table shows the effects that changes in average balances (volume) and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:

(Dollars in thousands)Increase/
(Decrease)
Due to		Total
Increase/
(Decrease)
VolumeRate
Interest-earning assets:
Loans receivable$(381)$(1,850)$(2,231)
Commercial paper84 431 515 
Debt securities available for sale(225)3 (222)
Other interest-earning assets(2,115)1,398 (717)
Total interest-earning assets(2,637)(18)(2,655)
Interest-bearing liabilities:
Interest-bearing checking accounts93 (267)(174)
Money market accounts221 (514)(293)
Savings accounts12 (4)8 
Certificate accounts(1,166)(2,485)(3,651)
Borrowings(5,412)(549)(5,961)
Total interest-bearing liabilities(6,252)(3,819)(10,071)
Net increase in tax equivalent interest income$7,416 

Provision for Credit Losses.  The following table presents a breakdown of the components of the provision (benefit) for credit losses:

Year Ended June 30,
20222021$ Change% Change
Provision (benefit) for credit losses:
Loans$(1,473)$(7,270)$5,797 (80)%
Off-balance-sheet credit exposure981 35 946 2,703 
Commercial paper(100)100 (200)(200)
Total provision (benefit) for credit losses$(592)$(7,135)$6,543 (92)%

The Company adopted CECL on July 1, 2020 when there was significant uncertainty regarding the impact of COVID-19 upon the economy and the Bank's loan portfolio more specifically. Since that time, more clarity has been gained regarding COVID-19's impact, and the economic forecast, specifically the national unemployment rate, improved significantly, driving the changes in the "loans" specific portion of the provision for credit losses for both periods.

For both periods presented, the provision for credit losses for off-balance-sheet credit exposure was the result of growth in unfunded commitments and changes in the commitments mix and qualitative adjustments.

See further discussion in the “Asset Quality” section below.






6


Noninterest Income.  Noninterest income for the year ended June 30, 2022 decreased $625,000, or 1.6%, year-over-year. Changes in selected components of noninterest income are discussed below:
Year Ended June 30,
20222021$ Change% Change
Noninterest income:
Service charges and fees on deposit accounts$9,462 $9,083 $379 4 %
Loan income and fees3,185 2,208 977 44 
Gain on sale of loans held for sale12,876 17,352 (4,476)(26)
BOLI income2,000 2,156 (156)(7)
Operating lease income6,392 5,601 791 14 
Gain on sale of debt securities available for sale1,895 — 1,895 100 
Other3,386 3,421 (35)(1)
Total noninterest income$39,196 $39,821 $(625)(2)%
•Loan income and fees: The increase in loan income and fees was primarily due to approximately $1.3 million in SBA servicing income, the result of bringing the servicing of these loans in-house effective July 1, 2021.
•Gain on sale of loans held for sale: The decrease in the gain on sale of loans held for sale was primarily driven by decreases in volume of residential mortgage loans and SBA commercial loans sold during the period as a result of rising interest rates. During the year ended June 30, 2022, $263.0 million of residential mortgage loans originated for sale were sold with gains of $6.4 million compared to $406.5 million sold with gains of $10.5 million in the prior year. There were $54.7 million of sales of the guaranteed portion of SBA commercial loans with recorded gains of $5.4 million in the current year compared to $66.1 million sold with gains of $6.1 million in the prior year. The Company sold $120.0 million of HELOCs during the current year for a gain of $791,000 compared to $110.8 million sold and gains of $724,000 in the prior year. Lastly, $11.5 million of indirect auto finance loans were sold out of the held for investment portfolio during the current year for a gain of $205,000. No such sales occurred in the prior year.
•Operating lease income: The increase in operating lease income year-over-year is a result of increases in equipment lease originations and higher outstanding balances in the current year.
•Gain on sale of debt securities available for sale: See explanation in the "Comparison — for the Three Months Ended June 30, 2022" section above.

Noninterest Expense.  Noninterest expense for the year ended June 30, 2022 decreased $26.0 million, or 19.8%, year-over-year. Changes in selected components of noninterest expense are discussed below:
Year Ended June 30,
20222021$ Change% Change
Noninterest expense:
Salaries and employee benefits$59,591 $62,956 $(3,365)(5)%
Occupancy expense, net9,692 9,521 171 2 
Computer services9,761 9,607 154 2 
Telephone, postage and supplies2,754 3,122 (368)(12)
Marketing and advertising2,583 1,626 957 59 
Deposit insurance premiums1,712 1,799 (87)(5)
REO related expense, net588 582 6 1 
Core deposit intangible amortization250 735 (485)(66)
Branch closure and restructuring expenses— 1,513 (1,513)(100)
Officer transition agreement expense1,795 — 1,795 100 
Prepayment penalties on borrowings— 22,690 (22,690)(100)
Other16,458 17,031 (573)(3)
Total noninterest expense$105,184 $131,182 $(25,998)(20)%
•Salaries and employee benefits: See explanation in the "Comparison — for the Three Months Ended June 30, 2022" section above.
•Marketing and advertising: The increase in marketing and advertising is primarily the result of less media advertising in the prior period during the pandemic.
•Branch closure and restructuring expenses: See explanation in the "Comparison — for the Three Months Ended June 30, 2022" section above.
•Officer transition agreement expense: See explanation in the "Comparison — for the Three Months Ended June 30, 2022" section above.
•Prepayment penalties on borrowings: See explanation in the "Comparison — for the Three Months Ended June 30, 2022" section above.

7


Income Taxes.  Income tax expense for the year ended June 30, 2022 increased $6.3 million, or 184.3%, to $9.7 million from $3.4 million in the prior year as a result of higher taxable income. The effective tax rate for 2022 and 2021 was 21.4% and 17.9%, respectively. The higher effective tax rate in the current year compared to the prior year was driven by a comparable amount of tax-exempt income in each period, compared to a higher pre-tax income in 2022.
Balance Sheet Review

Total assets and liabilities increased by $24.5 million and $32.2 million to $3.5 billion and $3.2 billion, respectively, at June 30, 2022 as compared to June 30, 2021. Deposits increased by $144.2 million, or 4.9%, which were used to pay off all borrowings during the period. The combined decreases in debt securities available for sale, certificates of deposit in other banks, and loans held for sale of $60.3 million was invested in interest-bearing deposits which increased $55.5 million, or 193.6%, during the period.
Stockholders' equity decreased $7.7 million, or 1.9%, to $388.8 million at June 30, 2022 as compared to June 30, 2021. Activity within stockholders' equity included $35.7 million in net income, $8.2 million in stock-based compensation and stock option exercises, offset by stock repurchases of $43.3 million and $5.5 million in cash dividends declared. As of June 30, 2022, the Bank was considered "well capitalized" in accordance with its regulatory capital guidelines and exceeded all regulatory capital requirements.
Asset Quality

The ACL on loans was $34.7 million, or 1.25% of total loans, at June 30, 2022 compared to $35.5 million, or 1.30% of total loans, as of June 30, 2021. The drivers of this year-over-year change are discussed in the "Comparison — for the Year Ended June 30, 2022" section above.
Net loan recoveries totaled $694,000 for the year ended June 30, 2022 compared to net charge-offs of $143,000 for the year ended June 30, 2021. Net recoveries as a percentage of average loans were (0.02)% for the year ended June 30, 2022 compared to net charge-offs of 0.01% for the prior year.
Nonperforming assets decreased by $6.5 million, or 50.6%, to $6.3 million, or 0.18%, of total assets at June 30, 2022 compared to $12.8 million, or 0.36%, of total assets at June 30, 2021. The significant decrease from June 30, 2021 was primarily a result of the payoff of two commercial real estate loan relationships totaling $5.1 million during the period. Nonperforming assets included $6.1 million in nonaccruing loans and $200,000 of real estate owned ("REO") at June 30, 2022, compared to $12.6 million and $188,000 in nonaccruing loans and REO, respectively, at June 30, 2021. Nonperforming loans to total loans was 0.22% at June 30, 2022 and 0.46% at June 30, 2021.
The ratio of classified assets to total assets decreased to 0.61% at June 30, 2022 from 0.76% at June 30, 2021. Classified assets decreased $5.1 million, or 19.2%, to $21.5 million at June 30, 2022 compared to $26.7 million at June 30, 2021, primarily due to the payoff of the two commercial real estate loan relationships discussed above.
About HomeTrust Bancshares, Inc.
HomeTrust Bancshares, Inc. is the holding company for the Bank. As of June 30, 2022, the Company had assets of $3.5 billion. The Bank, founded in 1926, is a North Carolina state chartered, community-focused financial institution committed to providing value added relationship banking with over 30 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, 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 labor shortages, and market liquidity, both nationally and in our market areas; expected revenues, cost savings, synergies and other benefits from our merger and acquisition activities, including the proposed acquisition of Quantum Capital Corp. might not be realized to the extent anticipated, within the anticipated time frames, or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected; 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 the effects of inflation, a potential recession, and other factors described in the Company'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 our website at www.htb.com and on the SEC's website at www.sec.gov. 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.
8


Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
June 30, 2022March 31, 2022December 31, 2021September 30, 2021
June 30, 2021 (1)
Assets
Cash$20,910 $19,783 $20,586 $22,431 $22,312 
Interest-bearing deposits84,209 32,267 14,240 20,142 28,678 
Cash and cash equivalents105,119 52,050 34,826 42,573 50,990 
Commercial paper, net194,427 312,918 254,157 196,652 189,596 
Certificates of deposit in other banks23,551 28,125 34,002 35,495 40,122 
Debt securities available for sale, at fair value126,978 106,315 121,851 124,576 156,459 
FHLB and FRB stock9,326 10,451 10,368 10,360 13,539 
SBIC investments, at cost12,758 12,589 11,749 10,531 10,171 
Loans held for sale79,307 85,263 102,070 105,161 93,539 
Total loans, net of deferred loan fees and costs2,769,295 2,699,538 2,696,072 2,719,642 2,733,267 
Allowance for credit losses – loans(34,690)(31,034)(30,933)(34,406)(35,468)
Loans, net2,734,605 2,668,504 2,665,139 2,685,236 2,697,799 
Premises and equipment, net69,094 69,629 69,461 68,568 70,909 
Accrued interest receivable8,573 7,980 8,200 8,429 7,933 
Deferred income taxes, net11,487 12,494 12,019 15,722 16,901 
Bank owned life insurance ("BOLI")95,281 94,740 94,209 93,679 93,108 
Goodwill25,638 25,638 25,638 25,638 25,638 
Core deposit intangibles, net93 135 185 250 343 
Other assets52,967 54,954 58,945 58,490 57,676 
Total assets$3,549,204 $3,541,785 $3,502,819 $3,481,360 $3,524,723 
Liabilities and stockholders' equity   
Liabilities   
Deposits$3,099,761 $3,059,157 $2,998,691 $2,987,284 $2,955,541 
Borrowings— 30,000 48,000 40,000 115,000 
Other liabilities60,598 57,497 54,382 57,565 57,663 
Total liabilities3,160,359 3,146,654 3,101,073 3,084,849 3,128,204 
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)
156 160 163 163 167 
Additional paid in capital126,106 136,181 147,552 151,425 160,582 
Retained earnings270,276 265,609 258,986 249,331 240,075 
Unearned Employee Stock Ownership Plan ("ESOP") shares(5,290)(5,422)(5,555)(5,687)(5,819)
Accumulated other comprehensive income (loss)(2,403)(1,397)600 1,279 1,514 
Total stockholders' equity388,845 395,131 401,746 396,511 396,519 
Total liabilities and stockholders' equity$3,549,204 $3,541,785 $3,502,819 $3,481,360 $3,524,723 
__________________________________________
(1)Derived from audited financial statements.
(2)Shares of common stock issued and outstanding were 15,591,466 at June 30, 2022; 15,978,262 at March 31, 2022; 16,303,461 at December 31, 2021; 16,307,658 at September 30, 2021; and 16,636,483 at June 30, 2021.

9


Consolidated Statements of Income (Loss) (Unaudited)
Three Months EndedYear Ended
(Dollars in thousands)
June 30, 2022March 31, 2022June 30, 2021June 30, 2022
June 30, 2021 (1)
Interest and dividend income
Loans$28,163 26,616 $27,234 $109,603 $111,798 
Commercial paper852 411 217 1,721 1,206 
Debt securities available for sale483 384 496 1,802 2,024 
Other investments and interest-bearing deposits628 784 859 2,988 3,705 
Total interest and dividend income30,126 28,195 28,806 116,114 118,733 
Interest expense
Deposits1,232 1,151 1,774 5,260 9,370 
Borrowings35 4 1,034 80 6,041 
Total interest expense1,267 1,155 2,808 5,340 15,411 
Net interest income28,859 27,040 25,998 110,774 103,322 
Provision (benefit) for credit losses 3,413 (45)(955)(592)(7,135)
Net interest income after provision (benefit) for credit losses25,446 27,085 26,953 111,366 110,457 
Noninterest income  
Service charges and fees on deposit accounts2,361 2,216 2,376 9,462 9,083 
Loan income and fees649 752 529 3,185 2,208 
Gain on sale of loans held for sale1,949 2,969 5,423 12,876 17,352 
BOLI income500 492 605 2,000 2,156 
Operating lease income1,472 1,661 1,494 6,392 5,601 
Gain on sale of securities available for sale1,895 — — 1,895 — 
Other890 857 733 3,386 3,421 
Total noninterest income9,716 8,947 11,160 39,196 39,821 
Noninterest expense  
Salaries and employee benefits14,709 14,730 16,265 59,591 62,956 
Occupancy expense, net2,491 2,483 2,511 9,692 9,521 
Computer services2,613 2,455 2,499 9,761 9,607 
Telephone, postage and supplies621 686 777 2,754 3,122 
Marketing and advertising473 573 655 2,583 1,626 
Deposit insurance premiums432 412 438 1,712 1,799 
REO related expense, net110 220 120 588 582 
Core deposit intangible amortization42 50 130 250 735 
Branch closure and restructuring expenses— — 1,513 — 1,513 
Officer transition agreement expense1,795 — — 1,795 — 
Prepayment penalties on borrowings— — 19,034 — 22,690 
Other4,173 4,190 4,291 16,458 17,031 
Total noninterest expense27,459 25,799 48,233 105,184 131,182 
Income (loss) before income taxes7,703 10,233 (10,120)45,378 19,096 
Income tax expense (benefit)1,678 2,210 (2,712)9,725 3,421 
Net income (loss)$6,025 $8,023 $(7,408)$35,653 $15,675 
__________________________________________
(1)Derived from audited financial statements.


10


Per Share Data
Three Months Ended Year Ended
June 30, 2022March 31, 2022June 30, 2021June 30, 2022June 30, 2021
Net income (loss) per common share:(1)
Basic$0.40 $0.51 $(0.46)$2.27 $0.96 
Diluted$0.39 $0.51 $(0.46)$2.23 $0.94 
Average shares outstanding:
Basic15,064,694 15,523,813 15,894,342 15,516,173 16,078,066 
Diluted15,245,673 15,793,012 15,894,342 15,810,409 16,495,115 
Book value per share at end of period$24.94 $24.73 $23.83 $24.94 $23.83 
Tangible book value per share at end of period (2)
$23.29 $23.12 $22.28 $23.29 $22.28 
Cash dividends declared per common share$0.09 $0.09 $0.08 $0.35 $0.31 
Total shares outstanding at end of period15,591,466 15,978,262 16,636,483 15,591,466 16,636,483 
__________________________________________
(1)Basic and diluted net income (loss) per common share have been prepared in accordance with the two-class method.
(2)See Non-GAAP reconciliations below for adjustments.

Selected Financial Ratios and Other Data
Three Months EndedYear Ended
June 30, 2022March 31, 2022June 30, 2021June 30, 2022June 30, 2021
Performance ratios:(1)
Return on assets (ratio of net income (loss) to average total assets)0.68 %0.92 %(0.81)%1.01 %0.42 %
Return on equity (ratio of net income (loss) to average equity)6.19 8.15 (7.30)9.00 3.88 
Tax equivalent yield on earning assets(2)
3.68 3.54 3.43 3.58 3.49 
Rate paid on interest-bearing liabilities0.21 0.20 0.44 0.23 0.57 
Tax equivalent average interest rate spread(2)
3.47 3.34 2.99 3.35 2.92 
Tax equivalent net interest margin(2) (3)
3.53 3.39 3.10 3.42 3.04 
Average interest-earning assets to average interest-bearing liabilities
138.45 137.72 132.52 138.30 128.01 
Noninterest expense to average total assets3.09 2.97 5.26 2.97 3.55 
Efficiency ratio71.18 71.69 129.81 71.18 91.64 
Efficiency ratio – adjusted(4)
69.41 71.06 73.86 69.25 74.08 
__________________________________________
(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 reconciliations below for adjustments.
At or For the Three Months Ended
June 30, 2022March 31, 2022December 31, 2021September 30, 2021June 30, 2021
Asset quality ratios:
Nonperforming assets to total assets(1)
0.18 %0.16 %0.18 %0.19 %0.36 %
Nonperforming loans to total loans(1)
0.22 0.22 0.23 0.25 0.46 
Total classified assets to total assets0.61 0.61 0.65 0.65 0.64 
Allowance for credit losses to nonperforming loans(1)
566.83 534.06 500.70 510.63 281.38 
Allowance for credit losses to total loans1.25 1.15 1.15 1.27 1.30 
Net charge-offs (recoveries) to average loans (annualized)(0.10)(0.11)0.15 (0.04)(0.04)
Capital ratios:
Equity to total assets at end of period10.96 %11.16 %11.47 %11.39 %11.25 %
Tangible equity to total tangible assets(2)
10.31 10.51 10.81 10.73 10.59 
Average equity to average assets10.93 11.32 11.28 11.27 11.06 
__________________________________________
(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 June 30, 2022, there were $2.8 million of restructured loans included in nonaccruing loans and $3.8 million, or 62.5%, of nonaccruing loans were current on their loan payments as of that date.
(2)See Non-GAAP reconciliations below for adjustments.
11


Loans
(Dollars in thousands)
June 30, 2022
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
Commercial real estate loans:
Construction and land development291,202 251,668 226,439 187,900 179,427 
Commercial real estate - owner occupied335,658 332,078 323,434 329,252 324,350 
Commercial real estate - non-owner occupied662,159 688,071 709,825 715,324 727,361 
Multifamily81,086 82,035 80,071 88,188 90,565 
Total commercial real estate loans1,370,105 1,353,852 1,339,769 1,320,664 1,321,703 
Commercial loans:
Commercial and industrial192,652 167,342 162,396 153,612 141,341 
Equipment finance394,541 378,629 367,008 341,995 317,920 
Municipal leases129,766 130,260 131,078 142,100 140,421 
PPP loans661 2,756 19,044 28,762 46,650 
Total commercial loans717,620 678,987 679,526 666,469 646,332 
Residential real estate loans:
Construction and land development81,847 72,735 69,253 69,835 66,027 
One-to-four family354,203 347,945 356,850 384,901 406,549 
HELOCs160,137 155,356 158,984 163,734 169,201 
Total residential real estate loans596,187 576,036 585,087 618,470 641,777 
Consumer loans85,383 90,663 91,690 114,039 123,455 
Total loans, net of deferred loan fees and costs2,769,295 2,699,538 2,696,072 2,719,642 2,733,267 
Allowance for credit losses - loans(34,690)(31,034)(30,933)(34,406)(35,468)
Loans, net$2,734,605 $2,668,504 $2,665,139 $2,685,236 $2,697,799 
Deposits
(Dollars in thousands)
June 30, 2022March 31, 2022December 31, 2021September 30, 2021June 30, 2021
Core deposits:
    Noninterest-bearing accounts$745,746 $704,344 $677,159 $711,764 $636,414 
    NOW accounts654,981 652,577 644,343 621,675 644,958 
    Money market accounts969,661 1,026,595 1,010,901 987,650 975,001 
    Savings accounts238,197 232,831 224,474 220,614 226,391 
Total core deposits2,608,585 2,616,347 2,556,877 2,541,703 2,482,764 
Certificates of deposit491,176 442,810 441,814 445,581 472,777 
Total$3,099,761 $3,059,157 $2,998,691 $2,987,284 $2,955,541 
12


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 and the tangible equity to tangible assets ratio. 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 EndedYear Ended
June 30,March 31,June 30,June 30,June 30,
(Dollars in thousands)20222022202120222021
Noninterest expense$27,459 $25,799 $48,233 $105,184 $131,182 
Less: branch closure and restructuring expenses— — 1,513 — 1,513 
Less: officer transition agreement expense1,795 — — 1,795 — 
Less: prepayment penalties on borrowings— — 19,034 — 22,690 
Noninterest expense – adjusted$25,664 $25,799 $27,686 $103,389 $106,979 
Net interest income$28,859 $27,040 $25,998 $110,774 $103,322 
Plus: tax equivalent adjustment294 320 325 1,231 1,267 
Plus: noninterest income9,716 8,947 11,160 39,196 39,821 
Less: gain on sale of securities available for sale1,895 — — 1,895 — 
Net interest income plus noninterest income – adjusted$36,974 $36,307 $37,483 $149,306 $144,410 
Efficiency ratio71.18 %71.69 %129.81 %70.14 %91.64 %
Efficiency ratio – adjusted69.41 %71.06 %73.86 %69.25 %74.08 %
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)June 30, 2022March 31, 2022December 31, 2021September 30, 2021June 30, 2021
Total stockholders' equity$388,845 $395,131 $401,746 $396,511 $396,519 
Less: goodwill, core deposit intangibles, net of taxes25,710 25,742 25,780 25,830 25,902 
Tangible book value$363,135 $369,389 $375,966 $370,681 $370,617 
Common shares outstanding15,591,466 15,978,262 16,303,461 16,307,658 16,636,483 
Book value per share at end of period$24.94 $24.73 $24.64 $24.31 $23.83 
Tangible book value per share at end of period$23.29 $23.12 $23.06 $22.73 $22.28 

Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:
As of
June 30, 2022March 31, 2022December 31, 2021September 30, 2021June 30, 2021
(Dollars in thousands)
Tangible equity(1)
$363,135 $369,389 $375,966 $370,681 $370,617 
Total assets3,549,204 3,541,785 3,502,819 3,481,360 3,524,723 
Less: goodwill and core deposit intangibles, net of taxes25,710 25,742 25,780 25,830 25,902 
Total tangible assets$3,523,494 $3,516,043 $3,477,039 $3,455,530 $3,498,821 
Tangible equity to tangible assets10.31 %10.51 %10.81 %10.73 %10.59 %
__________________________________________
(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.



13