HomeTrust Bancshares Inc (HTBI) Announces Q1 Financial Results and Dividend Increase
HomeTrust Bancshares Inc (NASDAQ:HTBI) reports a net income of $14.8 million for Q1, a slight decrease from $15.0 million in the previous quarter.
Quarterly cash dividend increases by 10% to $0.11 per common share.
Net interest income stands at $42.2 million, compared to $43.9 million in the previous quarter.
Noninterest income increases to $8.6 million from $6.9 million in the previous quarter.
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HomeTrust Bancshares Inc (NASDAQ:HTBI), the holding company of HomeTrust Bank, announced its preliminary net income for the first quarter of the six-month transition period ending December 31, 2023, on October 25, 2023. The company reported a net income of $14.8 million, slightly down from $15.0 million in the previous quarter. Despite this, the company announced an increase in its quarterly cash dividend, reflecting a $0.01, or 10.0%, increase over the previous quarter's dividend.
Financial Performance
HTBI's diluted earnings per share (EPS) was $0.88, compared to $0.90 in the previous quarter. The annualized return on assets (ROA) was 1.33%, compared to 1.39%, and the annualized return on equity (ROE) was 12.23%, compared to 12.85%. Net interest income was $42.2 million, compared to $43.9 million, and the net interest margin was 4.02%, compared to 4.32%. The provision for credit losses was $2.6 million, compared to $405,000.
Dividend Increase
The company's Board of Directors declared a quarterly cash dividend of $0.11 per common share, reflecting a $0.01, or 10.0%, increase over the previous quarter's dividend. This is the fifth increase of the quarterly dividend since the company initiated cash dividends in November 2018. The dividend is payable on November 30, 2023, to shareholders of record as of the close of business on November 16, 2023.
Commentary
President and Chief Executive Officer, Hunter Westbrook, commented on the results,
We are pleased to report another quarter of strong financial results. Our well-positioned balance sheet and resilient performance despite the most challenging interest rate environment of my 35-year banking career validates the strategic makeover of HomeTrust Bank."
Financial Tables
The company's net portfolio loan growth was $1.1 million, or 0.1% annualized, compared to $9.8 million, or 1.1% annualized. Noninterest income was $8.6 million, compared to $6.9 million, driven primarily by tax-free death benefit proceeds from life insurance of $1.1 million. The unrealized loss on the available for sale investment portfolio was $6.0 million, or 4.3% of book value, compared to $5.3 million, or 3.4% of book value as of September 30, 2023, and June 30, 2023, respectively.
Analysis
Despite a slight decrease in net income, HTBI has shown resilience in a challenging interest rate environment. The increase in the quarterly cash dividend reflects the company's confidence in its financial position. However, the increase in the provision for credit losses and the decrease in net interest income are areas that may require attention moving forward.
This article first appeared on GuruFocus.
