HomeTrust Bancshares Reports $17.2 Million Net Income for Q2 2025

HomeTrust Bancshares, Inc. reported a net income of $17.2 million for the quarter ending June 30, 2025, translating to earnings per share (EPS) of $1.00, a significant increase from $12.4 million and $0.73 EPS in the same quarter of the previous year. For the first half of 2025, net income reached $31.7 million, or $1.84 per diluted share, compared to $27.5 million and $1.61 per diluted share for the same period in 2024. The company's net interest income rose to $44.2 million for the quarter, up from $42.4 million in the previous quarter, driven by a net interest margin increase to 4.32% from 4.18%. The provision for credit losses decreased to $1.3 million from $4.3 million year-over-year, reflecting improved asset quality.

In terms of operational changes, HomeTrust completed the sale of two branches in Knoxville, Tennessee, resulting in a pre-tax gain of $1.4 million. This transaction involved the sale of $34.3 million in deposits and $6.3 million in branch premises and equipment, while the bank retained all loans associated with the branches. The company also repurchased 78,412 shares of common stock during the quarter at an average price of $35.74, compared to 14,800 shares repurchased at an average price of $33.64 in the prior quarter.

HomeTrust's total assets decreased slightly to $4.58 billion as of June 30, 2025, down from $4.60 billion at the end of 2024. Total liabilities also fell to $4.00 billion, primarily due to a reduction in deposits, which decreased by $113 million, largely attributed to a decline in brokered deposits and the aforementioned branch sale. The bank's loan portfolio increased by $23.7 million to $3.67 billion, with notable growth in commercial and industrial loans, which rose by 16% year-over-year.

The company reported a decrease in its allowance for credit losses (ACL) on loans to $44.1 million, or 1.20% of total loans, down from $45.3 million, or 1.24%, at the end of 2024. Nonperforming assets increased to $30.5 million, representing 0.67% of total assets, compared to $28.0 million, or 0.61%, at the end of the previous quarter. The bank's capital ratios remained strong, with the Common Equity Tier 1 (CET1) capital ratio at 13.12%, significantly above the regulatory minimum.

Looking ahead, HomeTrust anticipates continued focus on prudent loan growth and maintaining asset quality. The company is also evaluating the potential impacts of recent legislative changes on its financial position. Management remains committed to enhancing shareholder value through strategic initiatives, including share repurchases and maintaining a strong capital position.