HomeTrust Bancshares, Inc. Announces Financial Results for the Second Quarter of the Year Ending December 31, 2026 and Declaration of a Quarterly Dividend
Rhea-AI Summary
HomeTrust Bancshares (NYSE: HTB) reported preliminary net income of $15.6 million, or $0.94 diluted EPS, for the quarter ended June 30, 2026, down from $16.8 million, or $0.99, in the prior quarter. Quarterly ROA was 1.46% and ROE 10.44%, while net interest margin improved to 4.41% from 4.31%.
Results reflected lower noninterest income (down $784,000) and higher noninterest expense (up $1.0 million), including a $1.1 million loss on redemption of junior subordinated debt, partly offset by a $1.0 million increase in net interest income. The Board raised the quarterly cash dividend by $0.02 to $0.15 per share, payable August 27, 2026, and the Company repurchased 153,606 shares at an average price of $46.31. For the first six months of 2026, net income was $32.4 million versus $31.7 million a year earlier, and net interest margin rose to 4.36%. The Company also launched a new Healthcare Banking Division after quarter end.
Positive
- Six‑month 2026 net income $32.4M vs. $31.7M in 2025
- Six‑month 2026 diluted EPS $1.93 vs. $1.84 prior year
- Net interest margin up to 4.41% from 4.31% QoQ; 4.36% vs. 4.25% YoY
- Deposit interest expense down $1.3M, or 7.5%, QoQ
- Provision for credit losses $1.3M six‑month vs. $2.8M prior year
- Quarterly dividend increased 15.4% to $0.15 per share
- Share repurchases 686,846 shares YTD at $43.62 average price
Negative
- Quarterly net income down 6.8% QoQ to $15.6M
- Quarterly diluted EPS down to $0.94 from $0.99 QoQ
- Provision for credit losses up 149% QoQ to $920K
- Noninterest income down $784K, or 7.8%, QoQ
- Noninterest expense up $1.0M, or 3.0%, QoQ
- Loss on redemption of junior subordinated debt securities $1.1M in current quarter
- Gain on sale of loans held for sale down $780K, or 29%, QoQ
News Market Reaction – HTB
In the Jul 23 session, HTB gained 0.54%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Dividends,earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 23 | First-quarter earnings | Positive | +3.6% | Quarterly earnings and dividend increase accompanied a 3.63% positive reaction. |
| Jan 22 | Fourth-quarter earnings | Positive | -2.4% | Fourth-quarter earnings and dividend declaration accompanied a 2.38% negative reaction. |
| Oct 22 | Third-quarter earnings | Positive | +1.6% | Third-quarter earnings and dividend increase accompanied a 1.62% positive reaction. |
| Jul 22 | Second-quarter earnings | Positive | +3.6% | Second-quarter earnings and dividend declaration accompanied a 3.61% positive reaction. |
| Apr 24 | First-quarter earnings | Positive | -0.9% | First-quarter earnings and dividend declaration accompanied a 0.92% negative reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific history showed four positive reactions and one negative divergence to dividends-and-earnings announcements.
Key Terms
net interest margin financial
provision for credit losses financial
junior subordinated debt securities financial
allowance for credit losses financial
annualized return on assets financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
ASHEVILLE, N.C., July 23, 2026 (GLOBE NEWSWIRE) -- HomeTrust Bancshares, Inc. (NYSE: HTB) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the second quarter of the year ending December 31, 2026 and approval of its quarterly cash dividend.
For the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026:
- net income was
$15.6 million compared to$16.8 million ; - diluted earnings per share ("EPS") were
$0.94 compared to$0.99 ; - annualized return on assets ("ROA") was
1.46% compared to1.55% ; - annualized return on equity ("ROE") was
10.44% compared to11.35% ; - net interest margin was
4.41% compared to4.31% ; - provision for credit losses was
$920,000 compared to$370,000 ; - gain on the sale of real estate was
$1.1 million compared to$377,000 ; - loss on the redemption of junior subordinated debt securities was
$1.1 million compared to$0 ; - quarterly cash dividends increased
$0.02 per share, or15.4% , to$0.15 per share totaling$2.4 million compared to$0.13 per share totaling$2.2 million ; and - 153,606 shares of Company common stock were repurchased during the current quarter at an average price of
$46.31 compared to 533,240 shares repurchased at an average price of$42.85 in the prior quarter.
For the six months ended June 30, 2026 compared to the six months ended June 30, 2025:
- net income was
$32.4 million compared to$31.7 million ; - diluted EPS were
$1.93 compared to$1.84 ; - annualized ROA was
1.51% compared to1.46% ; - annualized ROE was
10.89% compared to11.26% ; - net interest margin was
4.36% compared to4.25% ; - provision for credit losses was
$1.3 million compared to$2.8 million ; - cash dividends were
$0.28 per share totaling$4.6 million compared to$0.24 per share totaling$4.1 million ; and - 686,846 shares of Company common stock were repurchased at an average price of
$43.62 compared to 93,212 shares of Company common stock repurchased at an average price of$35.41 in the same period last year.
The Company also announced today that its Board of Directors declared a quarterly cash dividend of
“We are pleased to report the continuation of our strong quarterly financial results driven by the expansion of our top-quartile net interest margin,” said Hunter Westbrook, President and Chief Executive Officer. “The quarter was highlighted by loan growth of
“Shortly after quarter end we were excited to announce the launch of our new Healthcare Banking Division. This is another important strategic step in expanding our relationship-oriented approach to banking, while ensuring we continue to meet the needs of the communities we are proud to serve.
“We have has previously stated our goal is to be a consistently high-performing regional community bank and a regionally and nationally recognized ‘Best Place to Work.’ Reflecting our progress, for a third straight year the Company was included in Forbes’ America’s Best Banks for 2026 and for a second straight year was included in the 2026 KBW Bank Honor Roll, a distinction granted to only
WEBSITE: WWW.HTB.COM
Comparison of Results of Operations for the Three Months Ended June 30, 2026 and March 31, 2026
Net Income. Net income totaled
Net Interest Income. The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.
| Three Months Ended | |||||||||||||||||||
| June 30, 2026 | March 31, 2026 | ||||||||||||||||||
| (Dollars in thousands) | Average Balance Outstanding | Interest Earned / Paid | Yield / Rate | Average Balance Outstanding | Interest Earned / Paid | Yield / Rate | |||||||||||||
| Assets | |||||||||||||||||||
| Interest-earning assets | |||||||||||||||||||
| Loans receivable(1) | $ | 3,770,898 | $ | 57,507 | 6.12 | % | $ | 3,793,994 | $ | 57,725 | 6.17 | % | |||||||
| Debt securities available for sale | 152,647 | 1,667 | 4.38 | 144,520 | 1,604 | 4.50 | |||||||||||||
| Other interest-earning assets(2) | 199,135 | 1,999 | 4.03 | 227,051 | 2,168 | 3.87 | |||||||||||||
| Total interest-earning assets | 4,122,680 | 61,173 | 5.95 | 4,165,565 | 61,497 | 5.99 | |||||||||||||
| Other assets | 175,077 | 218,936 | |||||||||||||||||
| Total assets | $ | 4,297,757 | $ | 4,384,501 | |||||||||||||||
| Liabilities and equity | |||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||
| Interest-bearing checking accounts | $ | 556,610 | $ | 1,128 | 0.81 | % | $ | 561,216 | $ | 1,101 | 0.80 | % | |||||||
| Money market accounts | 1,376,199 | 8,678 | 2.53 | 1,369,569 | 8,616 | 2.55 | |||||||||||||
| Savings accounts | 170,067 | 28 | 0.07 | 170,227 | 28 | 0.07 | |||||||||||||
| Certificate accounts | 712,224 | 5,744 | 3.23 | 830,675 | 7,105 | 3.47 | |||||||||||||
| Total interest-bearing deposits | 2,815,100 | 15,578 | 2.22 | 2,931,687 | 16,850 | 2.33 | |||||||||||||
| Junior subordinated debt | 8,449 | 151 | 7.17 | 10,231 | 188 | 7.45 | |||||||||||||
| Borrowings | 15,978 | 150 | 3.77 | 16,667 | 154 | 3.75 | |||||||||||||
| Total interest-bearing liabilities | 2,839,527 | 15,879 | 2.24 | 2,958,585 | 17,192 | 2.36 | |||||||||||||
| Noninterest-bearing deposits | 806,566 | 759,493 | |||||||||||||||||
| Other liabilities | 50,949 | 67,106 | |||||||||||||||||
| Total liabilities | 3,697,042 | 3,785,184 | |||||||||||||||||
| Stockholders' equity | 600,715 | 599,317 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 4,297,757 | $ | 4,384,501 | |||||||||||||||
| Net earning assets | $ | 1,283,153 | $ | 1,206,980 | |||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 145.19 | % | 140.80 | % | |||||||||||||||
| Non-tax-equivalent | |||||||||||||||||||
| Net interest income | $ | 45,294 | $ | 44,305 | |||||||||||||||
| Interest rate spread | 3.71 | % | 3.63 | % | |||||||||||||||
| Net interest margin(3) | 4.41 | % | 4.31 | % | |||||||||||||||
| Tax-equivalent(4) | |||||||||||||||||||
| Net interest income | $ | 45,752 | $ | 44,740 | |||||||||||||||
| Interest rate spread | 3.76 | % | 3.67 | % | |||||||||||||||
| Net interest margin(3) | 4.45 | % | 4.36 | % | |||||||||||||||
(1) Average loans receivable balances include loans held for sale and nonaccruing loans.
(2) Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks.
(3) Net interest income divided by average interest-earning assets.
(4) Tax-equivalent results include adjustments to interest income of
Total interest and dividend income for the three months ended June 30, 2026 decreased
Total interest expense for the three months ended June 30, 2026 decreased
The following table shows the effects that changes in average balances (volume), including differences in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:
| Increase / (Decrease) Due to | Total Increase/ (Decrease) | ||||||||||
| (Dollars in thousands) | Volume | Rate | |||||||||
| Interest-earning assets | |||||||||||
| Loans receivable | $ | 281 | $ | (499 | ) | $ | (218 | ) | |||
| Debt securities available for sale | 109 | (46 | ) | 63 | |||||||
| Other interest-earning assets | (245 | ) | 76 | (169 | ) | ||||||
| Total interest-earning assets | 145 | (469 | ) | (324 | ) | ||||||
| Interest-bearing liabilities | |||||||||||
| Interest-bearing checking accounts | 3 | 24 | 27 | ||||||||
| Money market accounts | 137 | (75 | ) | 62 | |||||||
| Savings accounts | — | — | — | ||||||||
| Certificate accounts | (950 | ) | (411 | ) | (1,361 | ) | |||||
| Junior subordinated debt | (31 | ) | (6 | ) | (37 | ) | |||||
| Borrowings | (5 | ) | 1 | (4 | ) | ||||||
| Total interest-bearing liabilities | (846 | ) | (467 | ) | (1,313 | ) | |||||
| Increase in net interest income | $ | 989 | |||||||||
Provision for Credit Losses. The provision for credit losses is the amount of expense that, based on our judgment, is required to maintain the allowance for credit losses ("ACL") at an appropriate level under the current expected credit losses model.
The following table presents a breakdown of the components of the provision for credit losses:
| Three Months Ended | |||||||||||||
| (Dollars in thousands) | June 30, 2026 | March 31, 2026 | $ Change | % Change | |||||||||
| Provision for credit losses | |||||||||||||
| Loans | $ | 1,020 | $ | 945 | $ | 75 | 8 | % | |||||
| Off-balance sheet credit exposure | (100 | ) | (575 | ) | 475 | 83 | |||||||
| Total provision for credit losses | $ | 920 | $ | 370 | $ | 550 | 149 | % | |||||
For the quarter ended June 30, 2026, the "loans" portion of the provision for credit losses was primarily the result of the following, offset by net charge-offs of
$0.2 million provision driven by changes in the loan mix.$0.4 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.$0.6 million decrease in specific reserves on individually evaluated loans.
For the quarter ended March 31, 2026, the "loans" portion of the provision for credit losses was primarily the result of the following, offset by net charge-offs of
$0.5 million benefit driven by changes in the loan mix.$0.2 million provision due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.$0.6 million decrease in specific reserves on individually evaluated loans.
For the quarters ended June 30, 2026 and March 31, 2026, the amounts recorded for off-balance sheet credit exposure were the result of changes in the balance of loan commitments, loan mix, projected economic forecast and qualitative allocations as outlined above.
Noninterest Income. Noninterest income for the three months ended June 30, 2026 decreased
| Three Months Ended | ||||||||||||
| (Dollars in thousands) | June 30, 2026 | March 31, 2026 | $ Change | % Change | ||||||||
| Noninterest income | ||||||||||||
| Service charges and fees on deposit accounts | $ | 2,627 | $ | 2,414 | $ | 213 | 9 | % | ||||
| Loan income and fees | 501 | 692 | (191 | ) | (28 | ) | ||||||
| Gain on sale of loans held for sale | 1,874 | 2,654 | (780 | ) | (29 | ) | ||||||
| Bank owned life insurance ("BOLI") income | 893 | 892 | 1 | — | ||||||||
| Operating lease income | 1,407 | 1,892 | (485 | ) | (26 | ) | ||||||
| Gain on sale of premises and equipment | 1,101 | 377 | 724 | 192 | ||||||||
| Other | 844 | 1,110 | (266 | ) | (24 | ) | ||||||
| Total noninterest income | $ | 9,247 | $ | 10,031 | $ | (784 | ) | (8)% | ||||
- Loan income and fees: The decrease was primarily the result of
$251,000 less in prepayment penalties, partially offset by a$68,000 increase in other servicing fees. - Gain on sale of loans held for sale: The decrease was primarily driven by a drop in the sales volume of HELOC loans originated for sale, partially offset by an increase in the sales volume of residential mortgage loans. There were
$17.2 million of HELOCs originated for sale which were sold during the current quarter with gains of$93,000 compared to$103.0 million sold with gains of$934,000 in the prior quarter. There were$39.9 million of residential mortgage loans sold for gains of$481,000 during the current quarter compared to$23.3 million sold with gains of$431,000 in the prior quarter. There were$15.3 million in sales of the guaranteed portion of SBA commercial loans with gains of$1.3 million for the current quarter compared to$16.4 million sold and gains of$1.2 million for the prior quarter. Lastly, our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a net gain of$4,000 for the current quarter compared to$68,000 for the prior quarter. - Operating lease income: The decrease was the result of a
$402,000 increase in losses upon contract termination in addition to a$83,000 decrease in contract earnings. - Gain on sale of premises and equipment: In both periods presented, gains were recognized on the sale of excess real estate.
- Other: The decrease was primarily driven by a
$108,000 reduction in investment services income quarter-over-quarter.
Noninterest Expense. Noninterest expense for the three months ended June 30, 2026 increased
| Three Months Ended | ||||||||||||
| (Dollars in thousands) | June 30, 2026 | March 31, 2026 | $ Change | % Change | ||||||||
| Noninterest expense | ||||||||||||
| Salaries and employee benefits | $ | 20,169 | $ | 19,877 | $ | 292 | 1 | % | ||||
| Occupancy expense, net | 2,417 | 2,630 | (213 | ) | (8 | ) | ||||||
| Computer services | 3,027 | 2,877 | 150 | 5 | ||||||||
| Operating lease depreciation expense | 1,378 | 1,516 | (138 | ) | (9 | ) | ||||||
| Telecom, postage and supplies | 509 | 581 | (72 | ) | (12 | ) | ||||||
| Marketing and advertising | 584 | 417 | 167 | 40 | ||||||||
| Deposit insurance premiums | 481 | 484 | (3 | ) | (1 | ) | ||||||
| Core deposit intangible amortization | 302 | 374 | (72 | ) | (19 | ) | ||||||
| Loss on redemption of junior subordinated debt securities | 1,079 | — | 1,079 | 100 | ||||||||
| Other | 4,033 | 4,219 | (186 | ) | (4 | ) | ||||||
| Total noninterest expense | $ | 33,979 | $ | 32,975 | $ | 1,004 | 3 | % | ||||
- Marketing and advertising: The increase was associated with the launch of online deposit account opening.
- Loss on redemption of junior subordinated debt securities: We previously established a fair value mark (discount) on the junior subordinated debt securities assumed through our merger with Quantum Capital Corp. and had been accreting the discount into interest expense. Associated with our redemption of the debt instruments in the current quarter, we wrote-off the remaining discount as an expense.
Income Taxes. The amount of income tax expense is influenced by the amount of pre-tax income, tax-exempt income, changes in the statutory rate and the effect of changes in valuation allowances maintained against deferred tax benefits. The effective tax rates for the three months ended June 30, 2026 and March 31, 2026 were
Comparison of Results of Operations for the Six Months Ended June 30, 2026 and June 30, 2025
Net Income. Net income totaled
Net Interest Income. The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.
| Six Months Ended | |||||||||||||||||||
| June 30, 2026 | June 30, 2025 | ||||||||||||||||||
| (Dollars in thousands) | Average Balance Outstanding | Interest Earned / Paid | Yield / Rate | Average Balance Outstanding | Interest Earned / Paid | Yield / Rate | |||||||||||||
| Assets | |||||||||||||||||||
| Interest-earning assets | |||||||||||||||||||
| Loans receivable(1) | $ | 3,782,382 | $ | 115,232 | 6.14 | % | $ | 3,803,259 | $ | 119,053 | 6.31 | % | |||||||
| Debt securities available for sale | 148,606 | 3,271 | 4.44 | 151,127 | 3,445 | 4.60 | |||||||||||||
| Other interest-earning assets(2) | 213,016 | 4,167 | 3.94 | 177,551 | 4,778 | 5.43 | |||||||||||||
| Total interest-earning assets | 4,144,004 | 122,670 | 5.97 | 4,131,937 | 127,276 | 6.21 | |||||||||||||
| Other assets | 196,886 | 264,865 | |||||||||||||||||
| Total assets | $ | 4,340,890 | $ | 4,396,802 | |||||||||||||||
| Liabilities and equity | |||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||
| Interest-bearing checking accounts | $ | 558,900 | $ | 2,229 | 0.80 | % | $ | 568,540 | $ | 2,575 | 0.91 | % | |||||||
| Money market accounts | 1,372,902 | 17,293 | 2.54 | 1,337,731 | 18,180 | 2.74 | |||||||||||||
| Savings accounts | 170,147 | 57 | 0.07 | 182,844 | 75 | 0.08 | |||||||||||||
| Certificate accounts | 771,122 | 12,849 | 3.36 | 909,787 | 18,389 | 4.08 | |||||||||||||
| Total interest-bearing deposits | 2,873,071 | 32,428 | 2.28 | 2,998,902 | 39,219 | 2.64 | |||||||||||||
| Junior subordinated debt | 9,335 | 339 | 7.32 | 10,142 | 411 | 8.17 | |||||||||||||
| Borrowings | 16,321 | 304 | 3.76 | 21,780 | 510 | 4.72 | |||||||||||||
| Total interest-bearing liabilities | 2,898,727 | 33,071 | 2.30 | 3,030,824 | 40,140 | 2.67 | |||||||||||||
| Noninterest-bearing deposits | 783,159 | 732,123 | |||||||||||||||||
| Other liabilities | 58,984 | 65,367 | |||||||||||||||||
| Total liabilities | 3,740,870 | 3,828,314 | |||||||||||||||||
| Stockholders' equity | 600,020 | 568,488 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 4,340,890 | $ | 4,396,802 | |||||||||||||||
| Net earning assets | $ | 1,245,277 | $ | 1,101,113 | |||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 142.96 | % | 136.33 | % | |||||||||||||||
| Non-tax-equivalent | |||||||||||||||||||
| Net interest income | $ | 89,599 | $ | 87,136 | |||||||||||||||
| Interest rate spread | 3.67 | % | 3.54 | % | |||||||||||||||
| Net interest margin(3) | 4.36 | % | 4.25 | % | |||||||||||||||
| Tax-equivalent(4) | |||||||||||||||||||
| Net interest income | $ | 90,491 | $ | 87,985 | |||||||||||||||
| Interest rate spread | 3.71 | % | 3.58 | % | |||||||||||||||
| Net interest margin(3) | 4.40 | % | 4.29 | % | |||||||||||||||
(1) Average loans receivable balances include loans held for sale and nonaccruing loans.
(2) Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks.
(3) Net interest income divided by average interest-earning assets.
(4) Tax-equivalent results include adjustments to interest income of
Total interest and dividend income for the six months ended June 30, 2026 decreased
Total interest expense for the six months ended June 30, 2026 decreased
The following table shows the effects that changes in average balances (volume), including differences in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:
| Increase / (Decrease) Due to | Total Increase / (Decrease) | ||||||||||
| (Dollars in thousands) | Volume | Rate | |||||||||
| Interest-earning assets | |||||||||||
| Loans receivable | $ | (654 | ) | $ | (3,167 | ) | $ | (3,821 | ) | ||
| Debt securities available for sale | (57 | ) | (117 | ) | (174 | ) | |||||
| Other interest-earning assets | 954 | (1,565 | ) | (611 | ) | ||||||
| Total interest-earning assets | 243 | (4,849 | ) | (4,606 | ) | ||||||
| Interest-bearing liabilities | |||||||||||
| Interest-bearing checking accounts | (44 | ) | (302 | ) | (346 | ) | |||||
| Money market accounts | 478 | (1,365 | ) | (887 | ) | ||||||
| Savings accounts | (5 | ) | (13 | ) | (18 | ) | |||||
| Certificate accounts | (2,803 | ) | (2,737 | ) | (5,540 | ) | |||||
| Junior subordinated debt | (33 | ) | (39 | ) | (72 | ) | |||||
| Borrowings | (128 | ) | (78 | ) | (206 | ) | |||||
| Total interest-bearing liabilities | (2,535 | ) | (4,534 | ) | (7,069 | ) | |||||
| Increase in net interest income | $ | 2,463 | |||||||||
Provision for Credit Losses. The following table presents a breakdown of the components of the provision for credit losses:
| Six Months Ended | |||||||||||||
| (Dollars in thousands) | June 30, 2026 | June 30, 2025 | $ Change | % Change | |||||||||
| Provision for credit losses | |||||||||||||
| Loans | $ | 1,965 | $ | 2,185 | $ | (220 | ) | (10)% | |||||
| Off-balance sheet credit exposure | (675 | ) | 658 | (1,333 | ) | (203 | ) | ||||||
| Total provision for credit losses | $ | 1,290 | $ | 2,843 | $ | (1,553 | ) | (55)% | |||||
For the six months ended June 30, 2026, the "loans" portion of the provision for credit losses was the result of the following, offset by net charge-offs of
$0.2 million benefit driven by changes in the loan mix.$0.3 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.$1.2 million decrease in specific reserves on individually evaluated credits.
For the six months June 30, 2025, the "loans" portion of the provision for credit losses was the result of the following, offset by net charge-offs of
$0.9 million benefit driven by changes in the loan mix.$1.6 million benefit due to changes in qualitative adjustments, partially offset by a slight worsening of the projected economic forecast, specifically the national unemployment rate. Of note, we released the$2.2 million qualitative allocation previously established for the potential impact of Hurricane Helene upon our loan portfolio which had been established in the quarter ended September 30, 2024.$1.4 million increase in specific reserves on individually evaluated loans.
For the six months ended June 30, 2026 and June 30, 2025, the amounts recorded for off-balance sheet credit exposure were the result of changes in the balance of loan commitments, loan mix, projected economic forecast and qualitative allocations as outlined above.
Noninterest Income. Noninterest income for the six months ended June 30, 2026 increased
| Six Months Ended | ||||||||||||
| (Dollars in thousands) | June 30, 2026 | June 30, 2025 | $ Change | % Change | ||||||||
| Noninterest income | ||||||||||||
| Service charges and fees on deposit accounts | $ | 5,041 | $ | 4,746 | $ | 295 | 6 | % | ||||
| Loan income and fees | 1,193 | 1,269 | (76 | ) | (6 | ) | ||||||
| Gain on sale of loans held for sale | 4,528 | 4,017 | 511 | 13 | ||||||||
| BOLI income | 1,785 | 1,694 | 91 | 5 | ||||||||
| Operating lease income | 3,299 | 3,255 | 44 | 1 | ||||||||
| Gain on sale of branches | — | 1,448 | (1,448 | ) | (100 | ) | ||||||
| Gain on sale of premises and equipment | 1,478 | 28 | 1,450 | 5,179 | ||||||||
| Other | 1,954 | 1,727 | 227 | 13 | ||||||||
| Total noninterest income | $ | 19,278 | $ | 18,184 | $ | 1,094 | 6 | % | ||||
- Gain on sale of loans held for sale: The increase was primarily driven by an increase in the sales volume of the guaranteed portion of SBA commercial loans, partially offset by a reduction in the sales volume of HELOC loans. During the six months ended June 30, 2026, there were
$31.7 million of sales of the guaranteed portion of SBA commercial loans with gains of$2.5 million compared to$11.9 million sold with gains of$936,000 for the corresponding period in the prior year. There were$63.2 million of residential mortgage loans sold during the current period for gains of$912,000 compared to$49.1 million sold with gains of$1.0 million for the corresponding period in the prior year. There were$120.2 million of HELOCs originated for sale which were sold during the current period with gains of$1.0 million compared to$198.2 million sold with gains of$2.0 million for the corresponding period in the prior year. Lastly, our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a net gain of$72,000 for the six months ended June 30, 2026 compared to$40,000 for the six months ended June 30, 2025. - Gain on sale of branches: During the prior year we completed the sale of our two Knoxville, Tennessee branches, recognizing a gain of
$1.4 million , with no similar activity occurring in the current year. - Gain on sale of premises and equipment: In both periods presented, gains were recognized on the sale of excess parcels of real estate.
Noninterest Expense. Noninterest expense for the six months ended June 30, 2026 increased
| Six Months Ended | ||||||||||||
| (Dollars in thousands) | June 30, 2026 | June 30, 2025 | $ Change | % Change | ||||||||
| Noninterest expense | ||||||||||||
| Salaries and employee benefits | $ | 40,046 | $ | 35,907 | $ | 4,139 | 12 | % | ||||
| Occupancy expense, net | 5,047 | 4,886 | 161 | 3 | ||||||||
| Computer services | 5,904 | 5,293 | 611 | 12 | ||||||||
| Operating lease depreciation expense | 2,894 | 3,657 | (763 | ) | (21 | ) | ||||||
| Telecom, postage and supplies | 1,090 | 1,107 | (17 | ) | (2 | ) | ||||||
| Marketing and advertising | 1,001 | 894 | 107 | 12 | ||||||||
| Deposit insurance premiums | 965 | 984 | (19 | ) | (2 | ) | ||||||
| Core deposit intangible amortization | 676 | 926 | (250 | ) | (27 | ) | ||||||
| Loss on redemption of junior subordinated debt securities | 1,079 | — | 1,079 | 100 | ||||||||
| Other | 8,252 | 8,562 | (310 | ) | (4 | ) | ||||||
| Total noninterest expense | $ | 66,954 | $ | 62,216 | $ | 4,738 | 8 | % | ||||
- Salaries and employee benefits: The increase was primarily the result of increases in both pay and incentive compensation.
- Computer services: The increase year-over-year reflects the Company's further investment in both our internal- and external-facing technological capabilities.
- Operating lease depreciation expense: The decrease was due to a decline in the population of operating lease contracts (assets being depreciated) year-over-year.
- Core deposit intangible amortization: The intangible recorded associated with the Quantum merger is being amortized on an accelerated basis, so the rate of amortization slowed year-over-year.
- Loss on redemption of junior subordinated debt securities: See explanation in the "Comparison of Results of Operations for the Three Months Ended June 30, 2026 and March 31, 2026 – Noninterest Expense" section above.
Income Taxes. The amount of income tax expense is influenced by the amount of pre-tax income, tax-exempt income, changes in the statutory rate and the effect of changes in valuation allowances maintained against deferred tax benefits. The effective tax rates for the six months ended June 30, 2026 and 2025 were
Balance Sheet Review
Total assets decreased by
Stockholders' equity decreased
As of June 30, 2026, 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
Net loan charge-offs totaled
The following table sets forth the composition of nonperforming assets, made up of nonaccrual loans and repossessed assets, across our asset categories.
| (Dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | ||||||||
| Nonaccruing loans | |||||||||||
| Commercial real estate | |||||||||||
| Construction and land development | $ | 472 | $ | 854 | $ | 381 | |||||
| Commercial real estate – owner occupied | 11,996 | 11,256 | 10,467 | ||||||||
| Commercial real estate – non-owner occupied | 4,273 | 6,704 | 6,566 | ||||||||
| Multifamily | 838 | — | — | ||||||||
| Total commercial real estate | 17,579 | 18,814 | 17,414 | ||||||||
| Commercial | |||||||||||
| Commercial and industrial | 14,617 | 10,578 | 9,786 | ||||||||
| Equipment finance | 5,003 | 6,096 | 6,690 | ||||||||
| Total commercial | 19,620 | 16,674 | 16,476 | ||||||||
| Residential real estate | |||||||||||
| One-to-four family | 5,168 | 3,632 | 2,961 | ||||||||
| HELOCs | 7,797 | 7,140 | 6,523 | ||||||||
| Total residential real estate | 12,965 | 10,772 | 9,484 | ||||||||
| Consumer | 438 | 479 | 402 | ||||||||
| Total nonaccruing loans | $ | 50,602 | $ | 46,739 | $ | 43,776 | |||||
| Total repossessed assets | 4,049 | 316 | 657 | ||||||||
| Total nonperforming assets | $ | 54,651 | $ | 47,055 | $ | 44,433 | |||||
| Total nonperforming assets as a percentage of total assets | 1.23 | % | 1.07 | % | 0.98 | % | |||||
| Total SBA loans included in nonaccrual loans | $ | 30,254 | $ | 22,720 | $ | 20,647 | |||||
| Portion of SBA loans fully guaranteed by the SBA | 23,563 | 16,348 | 14,885 | ||||||||
| Total nonaccruing loans, excluding the balance fully guaranteed by the SBA | 27,039 | 30,391 | 28,891 | ||||||||
| Total repossessed assets | 4,049 | 316 | 657 | ||||||||
| Total nonperforming assets, excluding the balance fully guaranteed by the SBA | $ | 31,088 | $ | 30,707 | $ | 29,548 | |||||
| Total nonperforming assets, excluding the balance fully guaranteed by the SBA, as a percentage of total assets | 0.70 | % | 0.70 | % | 0.65 | % | |||||
SBA loans made up
Classified assets decreased by
About HomeTrust Bancshares, Inc.
HomeTrust Bancshares, Inc. (NYSE: HTB), headquartered in Asheville, North Carolina, is the holding company for HomeTrust Bank, a state-chartered community bank operating over 30 locations across North Carolina, South Carolina, East Tennessee, Southwest Virginia, and Georgia. With total assets of
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but instead are based on certain assumptions including statements with respect to the Company's beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by forward-looking statements. The factors that could result in material differentiation include, but are not limited to expected revenues, cost savings, synergies and other benefits from merger and acquisition activities might not be realized to the extent anticipated, within the anticipated time frames, or at all, costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected, and goodwill impairment charges might be incurred; increased competitive pressures among financial services companies; changes in the interest rate environment; changes in general economic conditions, both nationally and in our market areas; the impact of geopolitical instability and trade policies on our operations including the imposition of tariffs and retaliatory tariffs; natural disasters; 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 the Company's 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 in the documents the Company files with or furnishes 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, the factors described above or other factors that management cannot foresee. The Company does not undertake, and specifically disclaims 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.
Consolidated Balance Sheets (Unaudited)
| (Dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025(1) | September 30, 2025 | June 30, 2025 | ||||||||||||||
| Assets | |||||||||||||||||||
| Cash | $ | 17,141 | $ | 14,505 | $ | 14,411 | $ | 15,435 | $ | 16,662 | |||||||||
| Interest-bearing deposits | 255,403 | 286,188 | 310,281 | 300,395 | 280,547 | ||||||||||||||
| Cash and cash equivalents | 272,544 | 300,693 | 324,692 | 315,830 | 297,209 | ||||||||||||||
| Certificates of deposit in other banks | 11,629 | 13,619 | 18,841 | 20,833 | 23,319 | ||||||||||||||
| Debt securities available for sale, at fair value | 145,880 | 149,729 | 142,540 | 145,682 | 143,942 | ||||||||||||||
| FHLB and FRB stock | 13,620 | 13,614 | 13,636 | 14,325 | 15,263 | ||||||||||||||
| SBIC investments | 20,398 | 19,461 | 18,818 | 18,346 | 17,720 | ||||||||||||||
| Loans held for sale, at fair value | 2,999 | 6,562 | 7,005 | 7,907 | 1,106 | ||||||||||||||
| Loans held for sale, at the lower of cost or fair value | 117,891 | 101,930 | 198,688 | 189,047 | 169,835 | ||||||||||||||
| Total loans, net of deferred loan fees and costs | 3,622,244 | 3,546,580 | 3,578,154 | 3,643,619 | 3,671,951 | ||||||||||||||
| Allowance for credit losses – loans | (39,789 | ) | (40,607 | ) | (41,479 | ) | (43,086 | ) | (44,139 | ) | |||||||||
| Loans, net | 3,582,455 | 3,505,973 | 3,536,675 | 3,600,533 | 3,627,812 | ||||||||||||||
| Premises and equipment, net | 62,485 | 62,210 | 62,400 | 62,437 | 62,706 | ||||||||||||||
| Accrued interest receivable | 14,530 | 14,636 | 15,973 | 17,077 | 16,554 | ||||||||||||||
| Deferred income taxes, net | 9,395 | 8,514 | 9,922 | 9,789 | 9,968 | ||||||||||||||
| BOLI | 95,456 | 94,555 | 93,930 | 93,474 | 92,576 | ||||||||||||||
| Goodwill | 34,111 | 34,111 | 34,111 | 34,111 | 34,111 | ||||||||||||||
| Core deposit intangibles, net | 4,172 | 4,474 | 4,848 | 5,259 | 5,670 | ||||||||||||||
| Other assets | 52,713 | 56,260 | 63,556 | 57,487 | 60,262 | ||||||||||||||
| Total assets | $ | 4,440,278 | $ | 4,386,341 | $ | 4,545,635 | $ | 4,592,137 | $ | 4,578,053 | |||||||||
| Liabilities and stockholders' equity | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Deposits | $ | 3,606,847 | $ | 3,639,542 | $ | 3,709,997 | $ | 3,698,227 | $ | 3,666,178 | |||||||||
| Junior subordinated debt | — | 10,245 | 10,220 | 10,195 | 10,170 | ||||||||||||||
| Borrowings | 175,000 | 90,000 | 165,000 | 230,000 | 265,000 | ||||||||||||||
| Other liabilities | 57,831 | 54,147 | 59,728 | 57,882 | 57,431 | ||||||||||||||
| Total liabilities | 3,839,678 | 3,793,934 | 3,944,945 | 3,996,304 | 3,998,779 | ||||||||||||||
| Stockholders' equity | |||||||||||||||||||
| Preferred stock, | — | — | — | — | — | ||||||||||||||
| Common stock, | 168 | 168 | 173 | 175 | 175 | ||||||||||||||
| Additional paid in capital | 139,759 | 144,465 | 166,856 | 176,289 | 174,900 | ||||||||||||||
| Retained earnings | 464,285 | 451,127 | 436,524 | 422,615 | 408,178 | ||||||||||||||
| Unearned Employee Stock Ownership Plan ("ESOP") shares | (3,174 | ) | (3,306 | ) | (3,438 | ) | (3,571 | ) | (3,703 | ) | |||||||||
| Accumulated other comprehensive income (loss) | (438 | ) | (47 | ) | 575 | 325 | (276 | ) | |||||||||||
| Total stockholders' equity | 600,600 | 592,407 | 600,690 | 595,833 | 579,274 | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 4,440,278 | $ | 4,386,341 | $ | 4,545,635 | $ | 4,592,137 | $ | 4,578,053 | |||||||||
(1) Derived from audited financial statements.
(2) Shares of common stock issued and outstanding were 16,727,821 at June 30, 2026; 16,803,185 at March 31, 2026; 17,286,289 at December 31, 2025; 17,520,425 at September 30, 2025; and 17,492,143 at June 30, 2025.
Consolidated Statements of Income (Unaudited)
| Three Months Ended | Six Month Ended | ||||||||||
| (Dollars in thousands) | June 30, 2026 | March 31, 2026 | June 30, 2026 | June 30, 2025 | |||||||
| Interest and dividend income | |||||||||||
| Loans | $ | 57,507 | $ | 57,725 | $ | 115,232 | $ | 119,053 | |||
| Debt securities available for sale | 1,667 | 1,604 | 3,271 | 3,445 | |||||||
| Other investments and interest-bearing deposits | 1,999 | 2,168 | 4,167 | 4,778 | |||||||
| Total interest and dividend income | 61,173 | 61,497 | 122,670 | 127,276 | |||||||
| Interest expense | |||||||||||
| Deposits | 15,578 | 16,850 | 32,428 | 39,219 | |||||||
| Junior subordinated debt | 151 | 188 | 339 | 411 | |||||||
| Borrowings | 150 | 154 | 304 | 510 | |||||||
| Total interest expense | 15,879 | 17,192 | 33,071 | 40,140 | |||||||
| Net interest income | 45,294 | 44,305 | 89,599 | 87,136 | |||||||
| Provision for credit losses | 920 | 370 | 1,290 | 2,843 | |||||||
| Net interest income after provision for credit losses | 44,374 | 43,935 | 88,309 | 84,293 | |||||||
| Noninterest income | |||||||||||
| Service charges and fees on deposit accounts | 2,627 | 2,414 | 5,041 | 4,746 | |||||||
| Loan income and fees | 501 | 692 | 1,193 | 1,269 | |||||||
| Gain on sale of loans held for sale | 1,874 | 2,654 | 4,528 | 4,017 | |||||||
| BOLI income | 893 | 892 | 1,785 | 1,694 | |||||||
| Operating lease income | 1,407 | 1,892 | 3,299 | 3,255 | |||||||
| Gain on sale of branches | — | — | — | 1,448 | |||||||
| Gain on sale of premises and equipment | 1,101 | 377 | 1,478 | 28 | |||||||
| Other | 844 | 1,110 | 1,954 | 1,727 | |||||||
| Total noninterest income | 9,247 | 10,031 | 19,278 | 18,184 | |||||||
| Noninterest expense | |||||||||||
| Salaries and employee benefits | 20,169 | 19,877 | 40,046 | 35,907 | |||||||
| Occupancy expense, net | 2,417 | 2,630 | 5,047 | 4,886 | |||||||
| Computer services | 3,027 | 2,877 | 5,904 | 5,293 | |||||||
| Operating lease depreciation expense | 1,378 | 1,516 | 2,894 | 3,657 | |||||||
| Telecom, postage and supplies | 509 | 581 | 1,090 | 1,107 | |||||||
| Marketing and advertising | 584 | 417 | 1,001 | 894 | |||||||
| Deposit insurance premiums | 481 | 484 | 965 | 984 | |||||||
| Core deposit intangible amortization | 302 | 374 | 676 | 926 | |||||||
| Loss on redemption of junior subordinated debt securities | 1,079 | — | 1,079 | — | |||||||
| Other | 4,033 | 4,219 | 8,252 | 8,562 | |||||||
| Total noninterest expense | 33,979 | 32,975 | 66,954 | 62,216 | |||||||
| Income before income taxes | 19,642 | 20,991 | 40,633 | 40,261 | |||||||
| Income tax expense | 4,012 | 4,219 | 8,231 | 8,512 | |||||||
| Net income | $ | 15,630 | $ | 16,772 | $ | 32,402 | $ | 31,749 | |||
Per Share Data
| Three Months Ended | Six Months Ended | ||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2026 | June 30, 2025 | ||||||||
| Net income per common share(1) | |||||||||||
| Basic | $ | 0.95 | $ | 1.00 | $ | 1.95 | $ | 1.85 | |||
| Diluted | $ | 0.94 | $ | 0.99 | $ | 1.93 | $ | 1.84 | |||
| Average shares outstanding | |||||||||||
| Basic | 16,311,782 | 16,582,376 | 16,446,295 | 17,008,699 | |||||||
| Diluted | 16,423,442 | 16,716,089 | 16,569,902 | 17,109,842 | |||||||
| Book value per share at end of period | $ | 35.90 | $ | 35.26 | $ | 35.90 | $ | 33.12 | |||
| Tangible book value per share at end of period(2) | $ | 33.67 | $ | 33.02 | $ | 33.67 | $ | 30.92 | |||
| Cash dividends declared per common share | $ | 0.15 | $ | 0.13 | $ | 0.28 | $ | 0.24 | |||
| Total shares outstanding at end of period | 16,727,821 | 16,803,185 | 16,727,821 | 17,492,143 | |||||||
(1) Basic and diluted net income 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 Ended | Six Months Ended | ||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2026 | June 30, 2025 | ||||||||
| Performance ratios(1) | |||||||||||
| Return on assets (ratio of net income to average total assets) | 1.46 | % | 1.55 | % | 1.51 | % | 1.46 | % | |||
| Return on equity (ratio of net income to average equity) | 10.44 | 11.35 | 10.89 | 11.26 | |||||||
| Yield on earning assets | 5.95 | 5.99 | 5.97 | 6.21 | |||||||
| Rate paid on interest-bearing liabilities | 2.24 | 2.36 | 2.30 | 2.67 | |||||||
| Average interest rate spread | 3.71 | 3.63 | 3.67 | 3.54 | |||||||
| Net interest margin(2) | 4.41 | 4.31 | 4.36 | 4.25 | |||||||
| Average interest-earning assets to average interest-bearing liabilities | 145.19 | 140.80 | 142.96 | 136.33 | |||||||
| Noninterest expense to average total assets | 3.17 | 3.05 | 3.11 | 2.85 | |||||||
| Efficiency ratio | 62.30 | 60.69 | 61.50 | 59.07 | |||||||
| Efficiency ratio – adjusted(3) | 61.04 | 60.62 | 60.83 | 59.43 | |||||||
(1) Ratios are annualized where appropriate.
(2) Net interest income divided by average interest-earning assets.
(3) See Non-GAAP reconciliations below for adjustments.
| At or For the Three Months Ended | ||||||||||||||
| June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | ||||||||||
| Asset quality ratios | ||||||||||||||
| Nonperforming assets to total assets(1) | 1.23 | % | 1.07 | % | 0.98 | % | 0.72 | % | 0.67 | % | ||||
| Nonperforming loans to total loans(1) | 1.40 | 1.32 | 1.22 | 0.89 | 0.81 | |||||||||
| Total classified assets to total assets | 1.59 | 1.65 | 1.46 | 1.23 | 1.07 | |||||||||
| Allowance for credit losses to nonperforming loans(1) | 78.63 | 86.88 | 94.75 | 132.26 | 147.98 | |||||||||
| Allowance for credit losses to total loans | 1.10 | 1.14 | 1.16 | 1.18 | 1.20 | |||||||||
| Net charge-offs to average loans (annualized) | 0.19 | 0.19 | 0.33 | 0.29 | 0.21 | |||||||||
| Capital ratios | ||||||||||||||
| Equity to total assets at end of period | 13.53 | % | 13.51 | % | 13.21 | % | 12.98 | % | 12.65 | % | ||||
| Tangible equity to total tangible assets(2) | 12.79 | 12.76 | 12.49 | 12.25 | 11.91 | |||||||||
| Average equity to average assets | 13.98 | 13.67 | 13.56 | 13.31 | 13.20 | |||||||||
(1) Nonperforming assets include nonaccruing loans and repossessed assets. There were no accruing loans more than 90 days past due at the dates indicated. For the periods presented, as shown in the "Asset Quality" section above, a portion of the nonaccrual loan balances was fully guaranteed by the SBA.
(2) See Non-GAAP reconciliations below for adjustments.
Loans
| (Dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | ||||||||||||||
| Commercial real estate | |||||||||||||||||||
| Construction and land development | $ | 326,985 | $ | 317,497 | $ | 277,028 | $ | 268,953 | $ | 267,494 | |||||||||
| Commercial real estate – owner occupied | 536,475 | 527,375 | 562,049 | 540,807 | 561,623 | ||||||||||||||
| Commercial real estate – non-owner occupied | 875,143 | 823,672 | 832,502 | 861,244 | 877,440 | ||||||||||||||
| Multifamily | 128,492 | 109,564 | 110,912 | 115,403 | 113,416 | ||||||||||||||
| Total commercial real estate | 1,867,095 | 1,778,108 | 1,782,491 | 1,786,407 | 1,819,973 | ||||||||||||||
| Commercial loans | |||||||||||||||||||
| Commercial and industrial | 392,876 | 392,114 | 378,686 | 399,155 | 367,359 | ||||||||||||||
| Equipment finance | 260,670 | 286,455 | 311,356 | 340,322 | 360,499 | ||||||||||||||
| Municipal leases | 169,611 | 167,371 | 166,396 | 164,967 | 168,623 | ||||||||||||||
| Total commercial | 823,157 | 845,940 | 856,438 | 904,444 | 896,481 | ||||||||||||||
| Residential real estate | |||||||||||||||||||
| Construction and land development | 47,694 | 48,715 | 45,617 | 51,110 | 53,020 | ||||||||||||||
| One-to-four family | 617,469 | 619,735 | 633,511 | 636,857 | 640,287 | ||||||||||||||
| HELOCs | 236,357 | 218,283 | 217,310 | 216,122 | 205,918 | ||||||||||||||
| Total residential real estate | 901,520 | 886,733 | 896,438 | 904,089 | 899,225 | ||||||||||||||
| Consumer | 30,472 | 35,799 | 42,787 | 48,679 | 56,272 | ||||||||||||||
| Total loans, net of deferred loan fees and costs | 3,622,244 | 3,546,580 | 3,578,154 | 3,643,619 | 3,671,951 | ||||||||||||||
| Allowance for credit losses – loans | (39,789 | ) | (40,607 | ) | (41,479 | ) | (43,086 | ) | (44,139 | ) | |||||||||
| Loans, net | $ | 3,582,455 | $ | 3,505,973 | $ | 3,536,675 | $ | 3,600,533 | $ | 3,627,812 | |||||||||
Deposits
| (Dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | |||||||||
| Core deposits | ||||||||||||||
| Noninterest-bearing accounts | $ | 739,787 | $ | 730,666 | $ | 707,748 | $ | 689,352 | $ | 698,843 | ||||
| NOW accounts | 541,807 | 575,525 | 546,387 | 537,954 | 561,524 | |||||||||
| Money market accounts | 1,421,600 | 1,393,120 | 1,374,635 | 1,343,008 | 1,323,762 | |||||||||
| Savings accounts | 165,902 | 171,754 | 171,455 | 172,883 | 179,980 | |||||||||
| Total core deposits | 2,869,096 | 2,871,065 | 2,800,225 | 2,743,197 | 2,764,109 | |||||||||
| Certificates of deposit | 737,751 | 768,477 | 909,772 | 955,030 | 902,069 | |||||||||
| Total | $ | 3,606,847 | $ | 3,639,542 | $ | 3,709,997 | $ | 3,698,227 | $ | 3,666,178 | ||||
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 Ended | Six Months Ended | ||||||||||
| (Dollars in thousands) | June 30, 2026 | March 31, 2026 | June 30, 2026 | June 30, 2025 | |||||||
| Noninterest expense | $ | 33,979 | $ | 32,975 | $ | 66,954 | $ | 62,216 | |||
| Less: loss on redemption of junior subordinated debt securities | 1,079 | — | 1,079 | — | |||||||
| Noninterest expense – adjusted | $ | 32,900 | $ | 32,975 | $ | 65,875 | $ | 62,216 | |||
| Net interest income | $ | 45,294 | $ | 44,305 | $ | 89,599 | $ | 87,136 | |||
| Plus: tax-equivalent adjustment | 458 | 435 | 892 | 849 | |||||||
| Plus: noninterest income | 9,247 | 10,031 | 19,278 | 18,184 | |||||||
| Less: gain on sale of branches | — | — | — | 1,448 | |||||||
| Less: gain on sale of premises and equipment | 1,101 | 377 | 1,478 | 28 | |||||||
| Net interest income plus noninterest income – adjusted | $ | 53,898 | $ | 54,394 | $ | 108,291 | $ | 104,693 | |||
| Efficiency ratio | 62.30 | % | 60.69 | % | 61.50 | % | 59.07 | % | |||
| Efficiency ratio – adjusted | 61.04 | % | 60.62 | % | 60.83 | % | 59.43 | % | |||
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, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | |||||||||
| Total stockholders' equity | $ | 600,600 | $ | 592,407 | $ | 600,690 | $ | 595,833 | $ | 579,274 | ||||
| Less: goodwill, core deposit intangibles, net of taxes | 37,323 | 37,556 | 37,844 | 38,160 | 38,477 | |||||||||
| Tangible book value | $ | 563,277 | $ | 554,851 | $ | 562,846 | $ | 557,673 | $ | 540,797 | ||||
| Common shares outstanding | 16,727,821 | 16,803,185 | 17,286,289 | 17,520,425 | 17,492,143 | |||||||||
| Book value per share | $ | 35.90 | $ | 35.26 | $ | 34.75 | $ | 34.01 | $ | 33.12 | ||||
| Tangible book value per share | $ | 33.67 | $ | 33.02 | $ | 32.56 | $ | 31.83 | $ | 30.92 | ||||
Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:
| As of | ||||||||||||||
| (Dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | |||||||||
| Tangible equity(1) | $ | 563,277 | $ | 554,851 | $ | 562,846 | $ | 557,673 | $ | 540,797 | ||||
| Total assets | 4,440,278 | 4,386,341 | 4,545,635 | 4,592,137 | 4,578,053 | |||||||||
| Less: goodwill, core deposit intangibles, net of taxes | 37,323 | 37,556 | 37,844 | 38,160 | 38,477 | |||||||||
| Total tangible assets | $ | 4,402,955 | $ | 4,348,785 | $ | 4,507,791 | $ | 4,553,977 | $ | 4,539,576 | ||||
| Tangible equity to tangible assets | 12.79 | % | 12.76 | % | 12.49 | % | 12.25 | % | 11.91 | % |
(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.
Contact: C. Hunter Westbrook – President and Chief Executive Officer Tony J. VunCannon – Executive Vice President, Chief Financial Officer, Corporate Secretary and Treasurer 828-259-3939