HomeTrust Bancshares, Inc. Announces Financial Results for the First Quarter of Fiscal 2021 and an Increase in Quarterly Dividend

Nachrichtenquelle: globenewswire
29.10.2020, 14:15  |  110   |   |   

ASHEVILLE, N.C., Oct. 29, 2020 (GLOBE NEWSWIRE) -- HomeTrust Bancshares, Inc. (NASDAQ: HTBI) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the first quarter of fiscal 2021, an increase in its quarterly cash dividend, and its updated response to the COVID-19 pandemic.

For the quarter ended September 30, 2020 compared to the corresponding quarter in the previous year:

  • net income was $5.8 million, compared to $8.8 million;
  • diluted earnings per share ("EPS") was $0.35, compared to $0.49;
  • return on assets ("ROA") was 0.62%, compared to 0.99%;
  • return on equity ("ROE") was 5.74%, compared to 8.57%;
  • provision for credit losses was $950,000, compared to no provision;
  • noninterest income increased $979,000, or 12.8% to $8.6 million from $7.7 million;
  • organic net loan growth, which excludes one-to-four family loans transferred to held for sale, U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) loans, and purchases of home equity lines of credit, was $10.4 million, or 1.6% annualized compared to $73.0 million, or 11.3% annualized; and
  • quarterly cash dividends continued at $0.07 per share totaling $1.1 million.

Earnings during the first quarter of fiscal 2021 continues to be negatively impacted by an economy weakened by COVID-19 as well as a lower interest rate margin due to the decrease in interest rates over the past year.

The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.08 per common share, reflecting a $0.01, or 14% increase over the previous quarter's dividend. This is the second increase of the quarterly dividend since the Company initiated cash dividends in November 2018. The dividend is payable on December 3, 2020 to shareholders of record as of the close of business on November 19, 2020.

COVID-19 Update

Loan Programs. The Company continues to offer a variety of relief options designed to support its customers and communities, including participating in the SBA PPP. As of September 30, 2020, the Company had originated $80.8 million of PPP loans for 290 customers. Net origination fees on these loans were approximately $2.1 million which were deferred and are being accreted into interest income over the life of the loans. Due to demand exceeding its capacity, the Company partnered with a third party to process and fund additional PPP loans, which to date total $32.1 million for almost 1,000 customers. The Company also continues to work with its clients to assist them with accessing other borrowing options, including the Main Street Lending Program and other government sponsored lending programs, as appropriate.

Loan Modifications. The Company is closely monitoring the effects of COVID-19 on its loan portfolio and will continue to monitor all the associated risks to minimize any potential losses. The Bank is offering payment and financial relief programs for borrowers impacted by COVID-19. These programs include loan payment deferrals for up to 90 days, waived late fees, and suspension of foreclosure proceedings and repossessions. Since March, the Company has received numerous requests from borrowers for some type of payment relief, however, the majority of these payment deferrals have ended and borrowers are again making regular loan payments. The breakout of loans deferred by loan type as of the dates indicated is as follows:

Payment Deferrals by Loan Type                
    September 30, 2020   August 31, 2020   June 30, 2020
    Deferral   Percent of Total Loan Portfolio   Deferral   Percent of Total Loan Portfolio   Deferral   Percent of Total Loan Portfolio
Lodging   $ 60,782     2.2 %   $ 64,686     2.4 %   $ 108,171     4.0 %
Other commercial real estate, construction and development, and commercial and industrial   27,169     1.0     43,056     1.6     367,443     13.7  
Equipment finance   2,187     0.1     4,547     0.2     33,693     1.3  
One-to-four family   684         2,360     0.1     36,821     1.4  
Other consumer loans   422         589         5,203     0.2  
Total   $ 91,244     3.3 %   $ 115,238     4.3 %   $ 551,331     20.5 %

The Company believes the steps it is taking are necessary to effectively manage its portfolio and assist its customers through the ongoing uncertainty surrounding the duration, impact and government response to the COVID-19 pandemic. In addition, the Company will continue to work with its customers to determine the best option for repayment of accrued interest on the deferred payments.

Branch Operations. Since the beginning of the pandemic, the Company has taken various steps to ensure the safety of its customers and its team members by limiting branch activities to appointment only and use of its drive-up facilities, and by encouraging the use of its digital and electronic banking channels, all the while adjusting for evolving State and Federal guidelines. On October 13, 2020, the Company reopened the lobbies of all its branches across its four state footprint with appropriate protective measures to help ensure the safety of its customers and retail banking employees.

“We were diligent in working with our customers to provide loan payment deferrals during the highest level of uncertainty of the pandemic as they adjusted their business plans to manage in the best way possible going forward,” said Dana Stonestreet, Chairman, President, and Chief Executive Officer. “In turn, our customers have been outstanding in moving back to their regular payment schedules. The 83% decline in loan payment deferrals since June 30 speaks well of our asset quality and the strength of our customers and banking markets.

“In addition, we are pleased with the positive accomplishments during this first quarter of our 2021 fiscal year. We set a new quarterly record of $96.0 million of mortgage loans originated for sale, which resulted in a gain on sale of $2.2 million. Coupled with a $1.1 million gain from the sales of SBA and home equity loans, we achieved a 41% increase in the gain on sale of loans over the prior quarter and a 45% increase over the same quarter last year. Diversifying our lines of business in recent years continues to pay dividends in operating results during this challenging pandemic operating environment. The energy, enthusiasm, and confidence of our team will continue to drive our success as we focus on maturing all of our newer and diversified lines of business to achieve financial results that create shareholder value."

Income Statement Review

Net interest income decreased to $25.5 million for the quarter ended September 30, 2020, compared to $27.1 million for the comparative quarter in fiscal 2020. The $1.6 million, or 5.8% decrease was due to a $5.8 million decrease in interest and dividend income primarily driven by lower rates on loans and commercial paper as a result of lower federal funds and other market interest rates, which was partially offset by a $4.2 million decrease in interest expense. Average interest-earning assets increased $147.6 million, or 4.5% to $3.4 billion for the quarter ended September 30, 2020. The average balance of total loans receivable increased by $125.8 million, or 4.6% compared to the same quarter last year due to organic loan growth and PPP loan originations. The average balance of commercial paper and deposits in other banks increased $61.0 million, or 16.8% driven by increases in commercial paper investments as a result of the Company's increased liquidity between the periods. The Company's investments in commercial paper have short-term maturities and limited exposure of $15.0 million or less per each highly-rated company. The overall increase in interest-earning assets was partially funded by a $158.2 million, or 48.5% increase in average noninterest-bearing deposits partially offset by a $10.0 million, or 0.4% decrease in total interest-bearing liabilities as compared to the same quarter last year. Net interest margin (on a fully taxable-equivalent basis) for the three months ended September 30, 2020 decreased to 3.00% from 3.32% for the same period a year ago.

Total interest and dividend income decreased $5.8 million, or 16.0% for the three months ended September 30, 2020 as compared to the same period last year, which was primarily driven by a $3.7 million, or 11.4% decrease in loan interest income, a $1.4 million, or 60.9% decrease in interest income from commercial paper and deposits in other banks, a $384,000, or 46.2% decrease in interest income on other interest-earning assets, and a $368,000, or 41.1% decrease in interest income on securities available for sale. The lower interest income in each category was primarily driven by the decrease in yields caused by the significant reduction in current market rates. Average loan yields decreased 72 basis points to 4.02% for the quarter ended September 30, 2020 from 4.74% in the corresponding quarter last year. Average yields on commercial paper and deposits in other banks decreased 165 basis points to 0.83% for the quarter ended September 30, 2020 from 2.48% in the corresponding quarter last year.

Total interest expense decreased $4.2 million, or 46.2% for the quarter ended September 30, 2020 compared to the same period last year. The decrease was driven by a $2.6 million, or 44.4% decrease in interest expense on deposits and a $1.6 million, or 49.2% decrease in interest expense on borrowings. Average interest-bearing deposits for the quarter ended September 30, 2020 increased $198.4 million, or 9.6%, but was more than offset by the corresponding cost of funds decrease of 56 basis points down to 0.57% compared to 1.13%. Average borrowings for the quarter ended September 30, 2020 decreased $208.4 million, or 30.5% along with a 52 basis point decrease in the average cost of borrowings compared to the same period last year. The increase in average deposits (interest and noninterest-bearing) was due to successful deposit gathering campaigns and funds from PPP loans and other government stimulus. The decrease in the average cost of borrowing was driven by the lower federal funds rate during the current quarter compared to the prior year. The overall average cost of funds decreased 61 basis points to 0.72% for the current quarter compared to 1.33% in the same quarter last year due primarily to the impact of the lower amount of borrowings and rates.

Noninterest income increased $979,000, or 12.8% to $8.6 million for the three months ended September 30, 2020 from $7.7 million for the same period in the previous year primarily due to a $1.0 million, or 45.5% increase in gain on the sale of loans, a $853,000, or 63.7% increase in other noninterest income, partially offset by a $408,000, or 46.3% decrease in loan income and fees and a $346,000, or 14.2% decrease in service charges and fees on deposit accounts. The increase in gain on the sale of loans was driven by an increase in sales of mortgage loans, home equity loans, and SBA loans. There were $96.0 million of residential mortgage loans originated for sale which were sold with gains of $2.2 million compared to $55.2 million sold and gains of $1.3 million in the corresponding quarter in the prior year. During the quarter ended September 30, 2020, $15.1 million of the guaranteed portion of SBA commercial loans were sold with gains of $1.0 million compared to $12.7 million sold and gains of $1.0 million in the corresponding quarter in the prior year. In addition, $20.0 million of home equity loans were sold during the quarter for a gain of $100,000. The increase in other noninterest income primarily related to operating lease income from the equipment finance line of business. The decrease in loan income and fees is primarily a result of lower fees from our adjustable rate conversion program and prepayment fees on equipment finance loans. The decrease in service charges on deposit accounts was a result of fewer transactions as customers have decreased spending during the pandemic.

Noninterest expense for the three months ended September 30, 2020 increased $2.5 million, or 10.5% to $26.0 million compared to $23.5 million for the three months ended September 30, 2019. The increase was primarily due to a $1.3 million, or 9.3% increase in salaries and employee benefits as a result of new positions, mortgage loan origination incentives, and annual salary increases; a $1.1 million, or 35.9% increase in other expenses, mainly driven by depreciation from our equipment finance line of business; a $511,000, or 100% increase in deposit insurance premiums as a result of credits being issued by the Federal Deposit Insurance Corporation in the prior year period, and a $283,000, or 14.0% increase in computer services. Partially offsetting these increases was a cumulative decrease of $716,000, or 16.9% in net occupancy expense; marketing and advertising expense; telephone, postage, and supplies expense; and core deposit intangible amortization for the three months ended September 30, 2020 compared to the same period last year.

For the three months ended September 30, 2020, the Company's income tax expense decreased $951,000, or 39.7% to $1.4 million from $2.4 million as a result of lower taxable income. The effective tax rate for the three months ended September 30, 2020 and 2019 was 20.1% and 21.4%, respectively.

Balance Sheet Review

Total assets and liabilities remained at $3.7 billion and $3.3 billion, at September 30, 2020 as compared to June 30, 2020, respectively. The cumulative decrease of $82.0 million, or 14.8% in cash and cash equivalents, commercial paper, and securities available for sale was mainly used to fund the $47.8 million, or 61.9% increase in loans held for sale and the $43.7 million, or 1.6% decrease in deposits. The increase in loans held for sale primarily relates to home equity loans originated for sale during the period.

On July 1, 2020, the Company adopted the current expected credit loss ("CECL") accounting standard in accordance with Accounting Standards Update ("ASU") 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The cumulative effect adjustment from this change in accounting policy resulted in an increase in our allowance for credit loss for loans of $14.8 million, additional deferred tax assets of $3.9 million, additional reserve for unfunded loan commitments of $2.3 million, and a reduction to retained earnings of $13.2 million. In addition, an allowance for credit loss for commercial paper was established for $250,000 with a deferred tax asset of $58,000. The adoption of this ASU did not have an effect on available for sale debt securities for the three months ended September 30, 2020.

Stockholders' equity at September 30, 2020 decreased $7.9 million, or 1.9% to $400.4 million compared to $408.3 million at June 30, 2020. Changes within stockholders' equity included $5.8 million in net income and $506,000 in stock-based compensation, offset by $13.4 million related to the adoption of the new CECL accounting standard and $1.1 million related to cash dividends declared. As of September 30, 2020, the Bank and the Company were considered "well capitalized" in accordance with their regulatory capital guidelines and exceeded all regulatory capital requirements.

Asset Quality

The allowance for credit losses was $43.1 million, or 1.56% of total loans, at September 30, 2020 compared to $28.1 million, or 1.01% of total loans, at June 30, 2020. The allowance for credit losses to total gross loans excluding PPP loans was 1.61% at September 30, 2020, compared to 1.04% at June 30, 2020. The overall increase was driven by additional allowance stemming from the Company's adoption of the new CECL accounting standard.

There was a $950,000 provision for credit losses for the quarter ended September 30, 2020, compared to no provision for the corresponding period in fiscal year 2020. The increase in the current quarter provision was primarily driven by changes in the mix of loans. Net loan charge-offs totaled $699,000 for the three months ended September 30, 2020, compared to $115,000 for the same period last year. Net charge-offs as a percentage of average loans were 0.10% and 0.02% for the quarter ended September 30, 2020 and 2019, respectively.

Nonperforming assets decreased by $1.7 million, or 10.4% to $14.6 million, or 0.40% of total assets at September 30, 2020 compared to $16.3 million, or 0.44% of total assets at June 30, 2020. Nonperforming assets included $14.4 million in nonaccruing loans and $144,000 in REO at September 30, 2020, compared to $15.9 million and $337,000 in nonaccruing loans and REO, respectively, at June 30, 2020. Included in nonperforming loans are $5.3 million of loans restructured from their original terms of which $4.2 million were current at September 30, 2020, with respect to their modified payment terms. Nonperforming loans to total loans was 0.52% at September 30, 2020 and 0.58% at June 30, 2020.

The ratio of classified assets to total assets decreased to 0.73% at September 30, 2020 from 0.84% at June 30, 2020 due to the decrease in classified loans during fiscal 2021. Classified assets decreased to $26.9 million at September 30, 2020 compared to $31.1 million at June 30, 2020 primarily due to $2.1 million in payoffs and $1.8 million in charge-offs during the quarter. The Company's overall asset quality metrics continue to demonstrate its commitment to growing and maintaining a loan portfolio with a moderate risk profile; however, the Company will remain diligent in its review of the portfolio and overall economy as it continues to maneuver through the uncertainty surrounding COVID-19.

About HomeTrust Bancshares, Inc.

HomeTrust Bancshares, Inc. is the holding company for HomeTrust Bank. As of September 30, 2020, the Company had assets of $3.7 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 40 locations as well as online/mobile channels. Locations include: North Carolina (including the Asheville metropolitan area, the "Piedmont" region, Charlotte, and Raleigh/Cary), Upstate South Carolina (Greenville), East Tennessee (including Kingsport/Johnson City/Bristol, Knoxville, and Morristown) and Southwest Virginia (including the Roanoke Valley). The Bank is the 2nd largest community bank headquartered in North Carolina.

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 our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. Factors that could cause our actual results to differ materially from those described in the forward-looking statements include: the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions and other uncertainties resulting from the COVID-19 pandemic, such as the extent and duration of the impact on public health, the U.S. and global economies, and consumer and corporate customers, including economic activity, employment levels and market liquidity; increased competitive pressures; changes in the interest rate environment; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; and other factors described in HomeTrust's latest annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission - which are available on our website at www.htb.com and on the SEC's website at www.sec.gov. These risks could cause our actual results for fiscal 2021 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect our operating and stock performance. Any of the forward-looking statements that we make in this press release or the documents we 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 we might make, because of the factors described above or because of other factors that we cannot foresee. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

WEBSITE: WWW.HOMETRUSTBANCSHARES.COM

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


Consolidated Balance Sheets (Unaudited)

(Dollars in thousands) September 30, 2020   June 30, 2020(1)   March 31, 2020   December 31, 2019   September 30, 2019
Assets                  
Cash $ 29,472       $ 31,908       $ 41,206       $ 47,213       $ 52,082    
Interest-bearing deposits 141,672       89,714       40,855       41,705       65,011    
Cash and cash equivalents 171,144       121,622       82,061       88,918       117,093    
Commercial paper 204,867       304,967       281,955       253,794       254,302    
Certificates of deposit in other banks 52,361       55,689       57,544       47,628       50,117    
Securities available for sale, at fair value 96,159       127,537       158,621       146,022       165,714    
Other investments, at cost 38,949       38,946       41,201       36,898       45,900    
Loans held for sale 124,985       77,177       38,682       118,055       289,319    
Total loans, net of deferred loan costs 2,769,396       2,769,119       2,663,524       2,554,541       2,508,730    
Allowance for credit losses (43,132 )     (28,072 )     (26,850 )     (22,031 )     (21,314 )  
Net loans 2,726,264       2,741,047       2,636,674       2,532,510       2,487,416    
Premises and equipment, net 59,418       58,462       58,738       58,020       58,509    
Accrued interest receivable 10,648       12,312       9,501       9,714       10,434    
Real estate owned ("REO") 144       337       1,075       1,451       2,582    
Deferred income taxes 19,209       16,334       21,750       22,066       24,257    
Bank owned life insurance ("BOLI") 92,775       92,187       91,612       91,048       90,499    
Goodwill 25,638       25,638       25,638       25,638       25,638    
Core deposit intangibles 840       1,078       1,381       1,715       2,088    
Other assets 50,633       49,519       41,600       36,755       31,441    
Total Assets $ 3,674,034       $ 3,722,852       $ 3,548,033       $ 3,470,232       $ 3,655,309    
Liabilities and Stockholders' Equity                  
Liabilities                  
Deposits $ 2,742,046       $ 2,785,756       $ 2,554,787       $ 2,557,769       $ 2,494,194    
Borrowings 475,000       475,000       535,000       435,000       685,000    
Other liabilities 56,637       53,833       52,806       60,468       63,047    
Total liabilities 3,273,683       3,314,589       3,142,593       3,053,237       3,242,241    
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) 170       170       171       177       178    
Additional paid in capital 170,204       169,648       170,368       182,366       186,359    
Retained earnings 234,023       242,776       240,325       240,312       232,315    
Unearned Employee Stock Ownership Plan ("ESOP") shares (6,216 )     (6,348 )     (6,480 )     (6,612 )     (6,744 )  
Accumulated other comprehensive income 2,170       2,017       1,056       752       960    
Total stockholders' equity 400,351       408,263       405,440       416,995       413,068    
Total Liabilities and Stockholders' Equity $ 3,674,034       $ 3,722,852       $ 3,548,033       $ 3,470,232       $ 3,655,309    

_________________________________

(1)   Derived from audited financial statements.
(2) Shares of common stock issued and outstanding were 17,020,724 at September 30, 2020; 17,021,357 at June 30, 2020; 17,101,954 at March 31, 2020; 17,664,384 at December 31, 2019; and 17,818,145 at September 30, 2019.


Consolidated Statements of Income (Unaudited)

    Three Months Ended
    September 30,   June 30,   September 30,
(Dollars in thousands)   2020   2020   2019
Interest and Dividend Income            
Loans   $ 28,592     $ 28,008     $ 32,266  
Commercial paper and interest-bearing deposits   881     1,740     2,253  
Securities available for sale   528     786     896  
Other investments   448     540     832  
Total interest and dividend income   30,449     31,074     36,247  
Interest Expense            
Deposits   3,253     4,692     5,853  
Borrowings   1,687     1,694     3,321  
Total interest expense   4,940     6,386     9,174  
Net Interest Income   25,509     24,688     27,073  
Provision for Credit Losses   950     2,700      
Net Interest Income after Provision for Credit Losses   24,559     21,988     27,073  
Noninterest Income            
Service charges and fees on deposit accounts   2,097     2,030     2,443  
Loan income and fees   474     447     882  
Gain on sale of loans held for sale   3,344     2,369     2,299  
BOLI income   532     522     697  
Other, net   2,192     1,855     1,339  
Total noninterest income   8,639     7,223     7,660  
Noninterest Expense            
Salaries and employee benefits   15,207     14,172     13,912  
Net occupancy expense   2,293     2,256     2,342  
Computer services   2,307     2,121     2,024  
Telephone, postage, and supplies   662     813     802  
Marketing and advertising   325     156     679  
Deposit insurance premiums   511     426      
Loss (gain) on sale and impairment of REO   (35 )   448     (19 )
REO expense   248     193     258  
Core deposit intangible amortization   238     303     411  
Other   4,244     3,764     3,124  
Total noninterest expense   26,000     24,652     23,533  
Income Before Income Taxes   7,198     4,559     11,200  
Income Tax Expense   1,445     964     2,396  
Net Income   $ 5,753     $ 3,595     $ 8,804  


Per Share Data

    Three months ended
    September 30,   June 30,   September 30,
    2020   2020   2019
Net income per common share:(1)            
Basic   $ 0.35     $ 0.22     $ 0.51  
Diluted   $ 0.35     $ 0.22     $ 0.49  
Average shares outstanding:            
Basic   16,230,990     16,217,185     17,097,647  
Diluted   16,469,242     16,489,125     17,753,657  
Book value per share at end of period   $ 23.52     $ 23.99     $ 23.18  
Tangible book value per share at end of period (2)   $ 21.98     $ 22.44     $ 21.65  
Cash dividends declared per common share   $ 0.07     $ 0.07     $ 0.06  
Total shares outstanding at end of period   17,020,724     17,021,357     17,818,145  

__________________________________________________

(1)   Basic and diluted net income per common share have been prepared in accordance with the two-class method.
(2) See Non-GAAP reconciliation tables below for adjustments.


Selected Financial Ratios and Other Data

    Three Months Ended
    September 30,   June 30,   September 30,
    2020   2020   2019
Performance ratios: (1)            
Return on assets (ratio of net income to average total assets)   0.62 %   0.39 %   0.99 %
Return on equity (ratio of net income to average equity)   5.74     3.54     8.57  
Tax equivalent yield on earning assets(2)   3.57     3.66     4.43  
Rate paid on interest-bearing liabilities   0.72     0.95     1.33  
Tax equivalent average interest rate spread (2)   2.85     2.71     3.10  
Tax equivalent net interest margin(2) (3)   3.00     2.92     3.32  
Average interest-earning assets to average interest-bearing liabilities   125.21     127.89     119.41  
Operating expense to average total assets   2.81     2.67     2.64  
Efficiency ratio   76.14     77.25     67.75  
Efficiency ratio - adjusted (4)   75.45     76.51     67.20  

_____________________________

(1)   Ratios are annualized where appropriate.
(2) The weighted average rate for municipal leases is adjusted for a 24% combined federal and state tax rate since the interest from these leases is tax exempt.
(3) Net interest income divided by average interest-earning assets.
(4) See Non-GAAP reconciliation tables below for adjustments.


  At or For the Three Months Ended
  September 30,   June 30,   March 31,   December 31,   September 30,
  2020   2020   2020   2019   2019
Asset quality ratios:                  
Nonperforming assets to total assets(1) 0.40 %   0.44 %   0.47 %   0.45   %   0.37 %
Nonperforming loans to total loans(1) 0.52     0.58     0.59     0.56       0.43  
Total classified assets to total assets 0.73     0.84     0.86     0.90       0.84  
Allowance for credit losses to nonperforming loans(1) 299.11     176.30     171.40     154.48       195.88  
Allowance for credit losses to total loans 1.56     1.01     1.01     0.86       0.85  
Allowance for credit losses to total gross loans excluding PPP loans(2) 1.61     1.04     N/A   N/A   N/A
Net charge-offs (recoveries) to average loans (annualized) 0.10     0.21     0.09     (0.05 )     0.02  
Capital ratios:                  
Equity to total assets at end of period 10.90 %   10.97 %   11.43 %   12.02   %   11.30 %
Tangible equity to total tangible assets(2) 10.25     10.33     10.76     11.33       10.63  
Average equity to average assets 10.85     11.02     11.80     11.52       11.54  

__________________________________________

(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 September 30, 2020, there were $5.3 million of restructured loans included in nonaccruing loans and $7.2 million, or 50.3% of nonaccruing loans were current on their loan payments.
(2) See Non-GAAP reconciliation tables below for adjustments.


Average Balance Sheet Data

  For the Three Months Ended September 30,
  2020   2019
  Average
Balance
Outstanding
  Interest
Earned/
Paid(2)
  Yield/
Rate(2)
  Average
Balance
Outstanding
  Interest
Earned/
Paid(2)
  Yield/
Rate(2)
(Dollars in thousands)  
Assets:                      
Interest-earning assets:                      
Loans receivable(1) $ 2,875,432     $ 28,902     4.02 %   $ 2,749,635     $ 32,551     4.74 %
Commercial paper and deposits in other banks 424,170     881     0.83 %   363,123     2,253     2.48 %
Securities available for sale 106,268     528     1.99 %   138,709     896     2.58 %
Other interest-earning assets(3) 38,946     448     4.61 %   45,710     832     7.28 %
Total interest-earning assets 3,444,816     30,759     3.57 %   3,297,177     36,532     4.43 %
Other assets 251,648             264,375          
Total assets $ 3,696,464             $ 3,561,552          
Liabilities and equity:                      
Interest-bearing deposits:                      
Interest-bearing checking accounts 560,481     397     0.28 %   441,524     319     0.29 %
Money market accounts 825,545     550     0.27 %   718,981     1,761     0.98 %
Savings accounts 200,543     37     0.07 %   172,393     52     0.12 %
Certificate accounts 689,709     2,269     1.32 %   744,956     3,721     2.00 %
Total interest-bearing deposits 2,276,278     3,253     0.57 %   2,077,854     5,853     1.13 %
Borrowings 475,000     1,687     1.42 %   683,413     3,321     1.94 %
Total interest-bearing liabilities 2,751,278     4,940     0.72 %   2,761,267     9,174     1.33 %
Noninterest-bearing deposits 484,336             326,105          
Other liabilities 59,935             63,101          
Total liabilities 3,295,549             3,150,473          
Stockholders' equity 400,915             411,079          
Total liabilities and stockholders' equity $ 3,696,464             $ 3,561,552          
                       
Net earning assets $ 693,538             $ 535,910          
Average interest-earning assets to                      
average interest-bearing liabilities 125.21 %           119.41 %        
Tax-equivalent:                      
Net interest income     $ 25,819             $ 27,358      
Interest rate spread         2.85 %           3.10 %
Net interest margin(4)         3.00 %           3.32 %
Non-tax-equivalent:                      
Net interest income     $ 25,509             $ 27,073      
Interest rate spread         2.82 %           3.07 %
Net interest margin(4)         2.96 %           3.28 %

__________________

(1)  The average loans receivable, net balances include loans held for sale and nonaccruing loans. 
(2)  Interest income used in the average interest earned and yield calculation includes the tax equivalent adjustment of $310 and $285 for the three months ended September 30, 2020 and 2019, respectively, calculated based on a combined federal and state tax rate of 24%.
(3) The average other interest-earning assets consist of FRB stock, FHLB stock, and SBIC investments. 
(4)  Net interest income divided by average interest-earning assets.


Loans

(Dollars in thousands) September 30, 2020   June 30, 2020   March 31, 2020   December 31, 2019   September 30, 2019
Retail consumer loans:                  
One-to-four family $ 460,315     $ 473,693     $ 487,777     $ 417,255     $ 396,649  
HELOCs - originated 132,986     137,447     144,804     142,989     141,129  
HELOCs - purchased 61,535     71,781     82,232     92,423     104,324  
Construction and land/lots 79,868     81,859     80,765     71,901     85,319  
Indirect auto finance 127,787     132,303     135,449     142,533     147,808  
Consumer 8,767     10,259     11,576     11,102     11,400  
Total retail consumer loans 871,258     907,342     942,603     878,203     886,629  
Commercial loans:                  
Commercial real estate 1,068,464     1,052,906     990,693     998,019     990,787  
Construction and development 217,288     215,934     249,714     223,839     203,494  
Commercial and industrial 151,342     154,825     164,539     152,727     158,706  
Equipment finance 248,071     229,239     198,962     185,427     154,479  
Municipal leases 130,215     127,987     115,992     115,240     114,382  
PPP loans 80,816     80,697              
Total commercial loans 1,896,196     1,861,588     1,719,900     1,675,252     1,621,848  
Total loans 2,767,454     2,768,930     2,662,503     2,553,455     2,508,477  
Deferred loan costs, net 1,942     189     1,021     1,086     253  
Total loans, net of deferred loan costs 2,769,396     2,769,119     2,663,524     2,554,541     2,508,730  
Allowance for credit losses (43,132 )   (28,072 )   (26,850 )   (22,031 )   (21,314 )
Loans, net $ 2,726,264     $ 2,741,047     $ 2,636,674     $ 2,532,510     $ 2,487,416  


Deposits

(Dollars in thousands) September 30, 2020   June 30, 2020   March 31, 2020   December 31, 2019   September 30, 2019
Core deposits:                  
Noninterest-bearing accounts $ 458,157     $ 429,901     $ 322,812     $ 327,320     $ 327,371  
NOW accounts 608,968     582,299     496,561     457,428     449,623  
Money market accounts 826,970     836,738     801,424     815,949     769,000  
Savings accounts 202,787     197,676     169,792     167,520     169,872  
Total core deposits 2,096,882     2,046,614     1,790,589     1,768,217     1,715,866  
Certificates of deposit 645,164     739,142     764,198     789,552     778,328  
Total deposits $ 2,742,046     $ 2,785,756     $ 2,554,787     $ 2,557,769     $ 2,494,194  


Non-GAAP Reconciliations

In addition to results presented in accordance with generally accepted accounting principles utilized in the United States ("GAAP"), this earnings release contains certain non-GAAP financial measures, which include: the efficiency ratio; tangible book value; tangible book value per share; tangible equity to tangible assets ratio; and the ratio of the allowance for credit losses to total loans excluding PPP loans. The Company believes these non-GAAP financial measures and ratios as presented are useful for both investors and management to understand the effects of certain items and provides an alternative view of the Company's performance over time and in comparison to the Company's 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 our efficiency ratio:

    Three Months Ended
(Dollars in thousands)   September 30,   June 30,   September 30,
    2020   2020   2019
Noninterest expense   $ 26,000     $ 24,652     $ 23,533  
             
Net interest income   $ 25,509     $ 24,688     $ 27,073  
Plus noninterest income   8,639     7,223     7,660  
Plus tax equivalent adjustment   310     311     285  
Net interest income plus noninterest income – as adjusted   $ 34,458     $ 32,222     $ 35,018  
Efficiency ratio - adjusted   75.45 %   76.51 %   67.20 %
Efficiency ratio   76.14 %   77.25 %   67.75 %

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)   September 30,   June 30,   March 31,   December 31,   September 30,
    2020   2020   2019   2019   2019
Total stockholders' equity   $ 400,351     $ 408,263     $ 405,440     $ 416,995     $ 413,068  
Less: goodwill, core deposit intangibles, net of taxes   26,285     26,468     26,701     26,959     27,246  
Tangible book value (1)   $ 374,066     $ 381,795     $ 378,739     $ 390,036     $ 385,822  
Common shares outstanding   17,020,724     17,016,372     17,101,954     17,664,384     17,818,145  
Tangible book value per share   $ 21.98     $ 22.44     $ 22.15     $ 22.08     $ 21.65  
Book value per share   $ 23.52     $ 23.99     $ 23.71     $ 23.61     $ 23.18  


(1)   Tangible book value is equal to total stockholders' equity less goodwill and core deposit intangibles, net of related deferred tax liabilities.


Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:

    As of
    September 30,   June 30,   March 31,   December 31,   September 30,
    2020   2020   2019   2019   2019
    (Dollars in thousands)
Tangible equity(1)   $ 374,066     $ 381,795     $ 378,739     $ 390,036     $ 385,822  
Total assets   3,674,034     3,722,852     3,548,033     3,470,232     3,655,609  
Less: goodwill, core deposit intangibles, net of taxes   26,285     26,468     26,701     26,959     27,246  
Total tangible assets(2)   $ 3,647,749     $ 3,696,384     $ 3,521,332     $ 3,443,273     $ 3,628,363  
Tangible equity to tangible assets   10.25 %   10.33 %   10.76 %   11.33 %   10.63 %


(1)   Tangible equity (or tangible book value) is equal to total stockholders' equity less goodwill and core deposit intangibles, net of related deferred tax liabilities. 
(2)  Total tangible assets is equal to total assets less goodwill and core deposit intangibles, net of related deferred tax liabilities.


Set forth below is a reconciliation to GAAP of the allowance for credit losses to total loans (excluding net deferred loan costs) and the allowance for credit losses as adjusted to exclude PPP loans:

    As of
(Dollars in thousands)   September 30,   June 30,   March 31,   December 31,   September 30,
    2020   2020   2020   2019   2019
Total gross loans receivable (GAAP)   $ 2,767,454     $ 2,768,930     $ 2,662,503     $ 2,553,455     $ 2,508,477  
Less: PPP loans (1)   80,816     80,697              
Adjusted loans (non-GAAP)   $ 2,686,638     $ 2,688,233     $ 2,662,503     $ 2,553,455     $ 2,508,477  
                     
Allowance for credit losses (GAAP)   $ 43,132     $ 28,072     $ 26,850     $ 22,031     $ 21,314  
Allowance for credit losses / Adjusted loans (non-GAAP)   1.61 %   1.04 %   1.01 %   0.86 %   0.85 %


(1)   PPP loans are fully guaranteed loans by the U.S, government and became available with the CARES Act.

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HomeTrust Bancshares, Inc. Announces Financial Results for the First Quarter of Fiscal 2021 and an Increase in Quarterly Dividend ASHEVILLE, N.C., Oct. 29, 2020 (GLOBE NEWSWIRE) - HomeTrust Bancshares, Inc. (NASDAQ: HTBI) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the first quarter of fiscal 2021, an increase in …

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