ASHEVILLE, N.C. - HomeTrust Bancshares, Inc. (NASDAQ: HTBI), the parent company of HomeTrust Bank, disclosed its financial results for the third quarter ending September 30, 2024, revealing a rise in net income and a boost in its quarterly cash dividend.
The bank reported a net income of $13.1 million for the quarter, up from $12.4 million in the previous quarter. Diluted earnings per share (EPS) also climbed to $0.76 from $0.73. The bank's annualized return on assets (ROA) increased to 1.17% from 1.13%, while the return on equity (ROE) saw a slight rise to 9.76% from 9.58%.
Despite a strong net interest margin of 4.00%, down from 4.08% in the previous quarter, the bank made a provision for credit losses of $3.0 million, which is a decrease from $4.3 million. The quarterly cash dividends were maintained at $0.11 per share, totaling $1.9 million for both periods.
For the nine-month period ended September 30, 2024, net income was $40.6 million compared to $36.6 million for the same period in the previous year. The diluted EPS increased to $2.37 from $2.18. The annualized ROA improved to 1.22% from 1.15%, while the annualized ROE decreased slightly to 10.39% from 10.56%. The net interest margin was reported at 4.03%, down from 4.29%. The provision for credit losses for the nine-month period was $8.4 million, a decrease from $11.7 million in the previous year.
The results reflect the impact of the merger with Quantum (NASDAQ:QMCO) Capital Corp., which was completed on February 12, 2023. This merger brought additional assets, loans, and deposits to HomeTrust Bancshares.
The bank's board of directors declared a quarterly cash dividend of $0.12 per common share, representing a 9.0% increase over the previous quarter's dividend. This marks the sixth increase of the quarterly dividend since the company initiated cash dividends in November 2018. The dividend is payable on November 27, 2024, to shareholders of record as of November 14, 2024.
President and CEO Hunter Westbrook commented on the bank's resilience in the face of Hurricane Helene, highlighting the commitment to supporting customers and communities affected by the storm. Westbrook also noted the bank's financial strength and geographic diversification as key factors in its ability to overcome such unforeseen events.
HomeTrust Bancshares, Inc., based on its press release statement, continues to focus on providing value-added relationship banking across its branches and digital platforms.
This financial summary is based on a press release statement and reflects the key points of HomeTrust Bancshares, Inc.'s performance for the third quarter and nine-month period ending September 30, 2024.
In other recent news, HomeTrust Bancshares is set to release its third-quarter earnings for 2024. This announcement follows the company's second-quarter results, which showed a decrease in net income to $12.4 million from $15.1 million, even as the net income for the six-month period ending June 30, 2024, increased to $27.5 million from $21.8 million. The company also maintained its quarterly cash dividend at $0.11 per share.
Furthermore, HomeTrust Bancshares experienced a significant leadership change, with Charles "Chuck" Sivley appointed as Chief Technology Officer, succeeding the outgoing Chief Information Officer, Marty T. Caywood.
In the realm of financial analysis, Keefe, Bruyette & Woods adjusted its outlook on HomeTrust Bancshares, raising the price target to $38.00. This adjustment was made in light of stable credit trends and strong net interest margin and net interest income. The firm also adjusted future earnings estimates for 2024 and 2025 to $3.03 and $2.83, respectively.
These recent developments provide insights into the company's financial performance and strategic changes.
InvestingPro Insights
HomeTrust Bancshares, Inc. (NASDAQ: HTBI) continues to demonstrate financial strength and resilience, as evidenced by its recent quarterly results and the insights provided by InvestingPro.
The company's decision to increase its quarterly cash dividend by 9.0% aligns with an InvestingPro Tip highlighting that HTBI has raised its dividend for 6 consecutive years. This consistent dividend growth underscores the bank's commitment to returning value to shareholders and reflects its stable financial position.
InvestingPro Data shows that HTBI's revenue growth stands at 23.19% for the last twelve months as of Q2 2024, indicating robust top-line performance. This growth is complemented by a strong operating income margin of 39.26% for the same period, suggesting effective cost management and operational efficiency.
The bank's valuation metrics are also noteworthy. With a P/E ratio of 9.2 and a price-to-book ratio of 1.11, HTBI appears to be trading at attractive levels relative to its earnings and book value. An InvestingPro Tip points out that the company is trading at a low P/E ratio relative to near-term earnings growth, which could signal potential upside for investors.
Moreover, HTBI's impressive one-year price total return of 73.37% as of the latest data reflects strong market performance and investor confidence in the bank's strategy and execution.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 8 more InvestingPro Tips available for HTBI, providing a deeper understanding of the company's financial health and market position.
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