HomeTrust Bancshares, Inc. Announces Financial Results for the Fourth Quarter of the Year Ended December 31, 2025 and Declaration of a Quarterly Dividend | HTB Stock News

ASHEVILLE, N.C., Jan. 22, 2026 (GLOBE NEWSWIRE) -- HomeTrust Bancshares, Inc. (NYSE: HTB) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the fourth quarter of the year ended December 31, 2025 and approval of its quarterly cash dividend. For the quarter ended December 31, 2025 compared to the quarter ended September 30, 2025: net income was $16.1 million compared to $16.5 million;diluted earnings per share ("EPS") were $0.93 compared to $0.95;annualized return on assets ("ROA") was 1.44% compared to 1.48%;annualized return on equity ("ROE") was 10.63% compared to 11.10%;net interest margin was 4.20% compared to 4.31%;provision for credit losses was $2.1 million compared to $2.0 million;tax free bank owned life insurance ("BOLI") death benefit proceeds in excess of cash surrender value was $92,000 compared to $0;quarterly cash dividends increased $0.01 per share, or 8.3%, to $0.13 per share totaling $2.2 million compared to $0.12 per share totaling $2.1 million; and241,201 shares of Company common stock were repurchased during the current quarter at an average price of $42.19 compared to none in the prior quarter. For the year ended December 31, 2025 compared to the year ended December 31, 2024: net income was $64.4 million compared to $54.8 million;diluted EPS was $3.72 compared to $3.20;ROA was 1.46% compared to 1.23%;ROE was 11.06% compared to 10.37%;net interest margin was 4.25% compared to 4.07%;provision for credit losses was $6.9 million compared to $7.5 million;gain on the sale of our two Knoxville, Tennessee branches was $1.4 million compared to $0;tax free BOLI death benefit proceeds in excess of cash surrender value of $92,000 compared to $1.1 million;cash dividends of $0.49 per share totaling $8.4 million compared to $0.45 per share totaling $7.7 million; and334,413 shares of Company common stock were repurchased during the current year at an average price was $40.30 compared to 23,483 shares repurchased at an average price of $27.48 in the prior year. The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.13 per common share payable on February 26, 2026 to shareholders of record as of the close of business on February 18, 2026. “Fiscal year 2025 ended with another quarter of strong financial performance,” said Hunter Westbrook, President and Chief Executive Officer. “For the second consecutive year, we delivered 11% growth in our tangible book value per share – driven by our top quartile net interest margin of 4.25%, strong gains on the sale of loans, and continued expense discipline. With our robust capital base and clear strategic vision, we are poised to accelerate loan growth in 2026. “As previously announced, HomeTrust was once again recognized as one of the 2025 America’s Top 100 Most Loved Workplaces by the Best Practice Institute, a 2025 Best Bank to Work For by American Banker, and one of the 2026 America’s Best Workplaces by Best Companies Group. These recognitions affirm the culture we’ve built – one rooted in empowering teammates, strengthening communities and cultivating a workplace where belonging fuels excellence – so we can make a lasting difference together. Our culture is the engine behind the momentum, and the reason HomeTrust continues to be a consistently high-performing community bank.” WEBSITE: WWW.HTB.COM Comparison of Results of Operations for the Three Months Ended December 31, 2025 and September 30, 2025Net Income. Net income totaled $16.1 million, or $0.93 per diluted share, for the three months ended December 31, 2025 compared to $16.5 million, or $0.95 per diluted share, for the three months ended September 30, 2025, a decrease of $367,000, or 2.2%. The results for the three months ended December 31, 2025 compared to the quarter ended September 30, 2025 were impacted by a $1.2 million decrease in net interest income, partially offset by a $645,000 increase in noninterest income. Details of the changes in the various components of net income are further discussed below. 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 December 31, 2025 September 30, 2025(Dollars in thousands)AverageBalanceOutstanding InterestEarned /Paid Yield /Rate AverageBalanceOutstanding InterestEarned /Paid Yield /RateAssets Interest-earning assets Loans receivable(1)$3,809,902 $59,597 6.21% $3,876,200 $61,749 6.32%Debt securities available for sale 147,247 1,599 4.31 146,374 1,662 4.50 Other interest-earning assets(2) 223,267 2,271 4.04 152,130 1,984 5.17 Total interest-earning assets 4,180,416 63,467 6.02 4,174,704 65,395 6.21 Other assets 255,547 256,449 Total assets$4,435,963 $4,431,153 Liabilities and equity Interest-bearing liabilities Interest-bearing checking accounts$540,889 $1,013 0.74% $544,229 $1,081 0.79%Money market accounts 1,361,620 9,192 2.68 1,330,856 9,276 2.77 Savings accounts 171,803 30 0.07 176,660 31 0.07 Certificate accounts 926,678 8,674 3.71 932,361 9,086 3.87 Total interest-bearing deposits 3,000,990 18,909 2.50 2,984,106 19,474 2.59 Junior subordinated debt 10,204 199 7.74 10,179 207 8.07 Borrowings 10,152 146 5.71 28,716 325 4.49 Total interest-bearing liabilities 3,021,346 19,254 2.53 3,023,001 20,006 2.63 Noninterest-bearing deposits 751,864 757,828 Other liabilities 61,085 60,692 Total liabilities 3,834,295 3,841,521 Stockholders' equity 601,668 589,632 Total liabilities and stockholders' equity$4,435,963 $4,431,153 Net earning assets$1,159,070 $1,151,703 Average interest-earning assets to average interest-bearing liabilities 138.36% 138.10% Non-tax-equivalent Net interest income $44,213 $45,389 Interest rate spread 3.49% 3.58%Net interest margin(3) 4.20% 4.31%Tax-equivalent(4) Net interest income $44,661 $45,829 Interest rate spread 3.54% 3.63%Net interest margin(3) 4.24% 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 $448 and $440 for the three months ended December 31, 2025 and September 30, 2025, respectively, calculated based on a combined federal and state tax rate of 24%. Total interest and dividend income for the three months ended December 31, 2025 decreased $1.9 million, or 2.9%, when compared to the three months ended September 30, 2025. Regarding the components of this income, loan interest income decreased $2.2 million, or 3.5%, primarily due to an overall decrease in average loan balances and the impact of decreases in the federal funds rate upon loan yields, and was partially offset by a $287,000 increase in interest income on other investments and interest-bearing accounts. Accretion income on acquired loans of $519,000 and $352,000 was recognized during the same periods, respectively, and was included in loan interest income. Total interest expense for the three months ended December 31, 2025 decreased $752,000, or 3.8%, compared to the three months ended September 30, 2025, the result of a $565,000, or 2.9%, decrease in interest expense on deposits and a $187,000, or 35.2%, decrease in interest expense on borrowings. The decrease in interest expense on deposits can primarily be traced to decreases in the average cost of funds, while the decrease in interest expense on borrowings was the result of a decline in average borrowings outstanding. The following table shows the effects that changes in average balances (volume), including differences in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities: Increase / (Decrease)Due to TotalIncrease/(Decrease)(Dollars in thousands)Volume Rate Interest-earning assets Loans receivable$(1,056) $(1,096) $(2,152)Debt securities available for sale 10 (73) (63)Other interest-earning assets 928 (641) 287 Total interest-earning assets (118) (1,810) (1,928)Interest-bearing liabilities Interest-bearing checking accounts (7) (61) (68)Money market accounts 214 (298) (84)Savings accounts (1) — (1)Certificate accounts (55) (357) (412)Junior subordinated debt 1 (9) (8)Borrowings (210) 31 (179)Total interest-bearing liabilities (58) (694) (752)Decrease in net interest income $(1,176) 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)December 31, 2025 September 30, 2025 $ Change % ChangeProvision for credit losses Loans$1,525 $1,755 $(230) (13)%Off-balance-sheet credit exposure 555 260 295 113 Total provision for credit losses$2,080 $2,015 $65 3% For the quarter ended December 31, 2025, the "loans" portion of the provision for credit losses was primarily the result of the following, offset by net charge-offs of $3.1 million during the quarter: $0.9 million benefit driven by changes in the loan mix.$0.1 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 September 30, 2025, the "loans" portion of the provision for credit losses was the result of the following, offset by net charge-offs of $2.8 million during the quarter: $0.6 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 December 31, 2025 and September 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 three months ended December 31, 2025 increased $645,000, or 7.4%, when compared to the quarter ended September 30, 2025. Changes in the components of noninterest income are discussed below: Three Months Ended (Dollars in thousands)December 31, 2025 September 30, 2025 $ Change % ChangeNoninterest income Service charges and fees on deposit accounts$2,534 $2,527 $7 —%Loan income and fees 926 577 349 60 Gain on sale of loans held for sale 1,926 1,725 201 12 BOLI income 976 882 94 11 Operating lease income 2,032 1,777 255 14 Gain on sale of premises and equipment 65 — 65 100 Other 937 1,263 (326) (26)Total noninterest income$9,396 $8,751 $645 7% Loan income and fees: The increase was primarily the result of a $144,000 increase in interest rate swap fees in addition to smaller increases across several other loan fee categories.Gain on sale of loans held for sale: The increase was primarily driven by an increase in the sales volume of SBA commercial loans originated for sale, partially offset by decreased sales volume of residential mortgage loans and HELOCs. There were $18.9 million in sales of the guaranteed portion of SBA commercial loans with gains of $1.5 million for the current quarter compared to $9.8 million sold and gains of $595,000 for the prior quarter. There were $31.1 million of residential mortgage loans sold for gains of $606,000 during the current quarter compared to $33.3 million sold with gains of $764,000 in the prior quarter. There were $13.7 million of HELOCs originated for sale which were sold during the current quarter with gains of $121,000 compared to $45.3 million sold with gains of $243,000 in the prior quarter. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a net loss of $295,000 for the current quarter compared to a net gain of $123,000 for the prior quarter.BOLI income: The increase was primarily related to $92,000 in tax-free gains on death benefit proceeds in excess of the cash surrender value in the current quarter, with no such income being recognized in the prior quarter.Operating lease income: The increase was primarily the result of a $359,000 reduction in losses upon contract termination, partially offset by a $104,000 decrease in contract earnings.Other: The decrease was driven by a $226,000 reduction of investment services income quarter-over-quarter. Noninterest Expense. Noninterest expense for the three months ended December 31, 2025 increased $428,000, or 1.4%, when compared to the three months ended September 30, 2025. Changes in the components of noninterest expense are discussed below: Three Months Ended (Dollars in thousands)December 31, 2025 September 30, 2025 $ Change % ChangeNoninterest expense Salaries and employee benefits$18,541 $18,508 $33 —%Occupancy expense, net 2,572 2,563 9 — Computer services 2,798 2,562 236 9 Operating lease depreciation expense 1,582 1,770 (188) (11)Telecom, postage and supplies 542 539 3 1 Marketing and advertising 514 471 43 9 Deposit insurance premiums 483 468 15 3 Core deposit intangible amortization 411 410 1 — Other 4,251 3,975 276 7 Total noninterest expense$31,694 $31,266 $428 1% Operating lease depreciation expense: The decrease was due to a decline in the population of operating lease contracts (assets being depreciated) quarter-over-quarter.Other: The change was driven by a $110,000 increase in ATM expense period-over-period in addition to smaller increases across several other expense categories. 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 December 31, 2025 and September 30, 2025 were 18.7% and 20.9%, respectively, with the quarter-over-quarter decline driven by the Company's investment in a tax credit equity fund. Comparison of Results of Operations for the Years Ended December 31, 2025 and December 31, 2024Net Income. Net income totaled $64.4 million, or $3.72 per diluted share, for the year ended December 31, 2025 compared to $54.8 million, or $3.20 per diluted share, for the year ended December 31, 2024, an increase of $9.6 million, or 17.4%. The results for the year ended December 31, 2025 compared to the prior year were positively impacted by a $7.2 million increase in net interest income, a $2.9 million increase in noninterest income, a $607,000 decrease in the provision for credit losses and a $321,000 decrease in noninterest expense. Details of the changes in the various components of net income are further discussed below. 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. Years Ended December 31, 2025 2024 (Dollars in thousands)AverageBalanceOutstanding InterestEarned /Paid Yield /Rate AverageBalanceOutstanding InterestEarned /Paid Yield /RateAssets Interest-earning assets Loans receivable(1)$3,823,319 $240,399 6.29% $3,884,984 $247,642 6.37%Debt securities available for sale 148,951 6,706 4.50 137,108 6,045 4.41 Other interest-earning assets(2) 182,666 9,033 4.95 144,262 7,929 5.50 Total interest-earning assets 4,154,936 256,138 6.16 4,166,354 261,616 6.28 Other assets 260,395 273,307 Total assets$4,415,331 $4,439,661 Liabilities and equity Interest-bearing liabilities Interest-bearing checking accounts$555,443 $4,669 0.84% $570,952 $5,420 0.95%Money market accounts 1,342,019 36,648 2.73 1,314,867 39,851 3.03 Savings accounts 178,503 136 0.08 185,712 164 0.09 Certificate accounts 919,734 36,149 3.93 952,602 42,003 4.41 Total interest-bearing deposits 2,995,699 77,602 2.59 3,024,133 87,438 2.89 Junior subordinated debt 10,167 817 8.04 10,067 928 9.22 Borrowings 20,597 981 4.76 61,205 3,746 6.12 Total interest-bearing liabilities 3,026,463 79,400 2.62 3,095,405 92,112 2.98 Noninterest-bearing deposits 743,578 757,472 Other liabilities 63,109 58,496 Total liabilities 3,833,150 3,911,373 Stockholders' equity 582,181 528,288 Total liabilities and stockholders' equity$4,415,331 $4,439,661 Net earning assets$1,128,473 $1,070,949 Average interest-earning assets to average interest-bearing liabilities 137.29% 134.60% Non-tax-equivalent Net interest income $176,738 $169,504 Interest rate spread 3.54% 3.30%Net interest margin(3) 4.25% 4.07%Tax-equivalent(4) Net interest income $178,475 $170,964 Interest rate spread 3.58% 3.34%Net interest margin(3) 4.30% 4.10% (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 $1,737 and $1,460 for the years ended December 31, 2025 and 2024, respectively, calculated based on a combined federal and state tax rate of 24%. Total interest and dividend income for the year ended December 31, 2025 decreased $5.5 million, or 2.1%, compared to the year ended December 31, 2024. Regarding the components of this income, loan interest income decreased $7.2 million, or 2.9%, primarily due to an overall decrease in average loan balances and the impact of decreases in the federal funds rate upon loan yields, partially offset by a $1.1 million increase in interest income on other investments and interest-bearing accounts, and a $661,000 increase in interest income on debt securities available for sale. Accretion income on acquired loans of $2.2 million and $3.2 million was recognized during the same periods, respectively, and was included in loan interest income. Total interest expense for the year ended December 31, 2025 decreased $12.7 million, or 13.8%, compared to the year ended December 31, 2024, the result of a $9.8 million, or 11.2%, decrease in interest expense on deposits and a $2.9 million, or 61.5%, decrease in interest expense on borrowings. The decrease in interest expense on deposits can primarily be traced to decreases in the average cost of funds, while the decrease in interest expense on borrowings was primarily the result of a decline in average borrowings outstanding. The following table shows the effects that changes in average balances (volume), including differences in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities: Increase / (Decrease)Due to TotalIncrease /(Decrease)(Dollars in thousands)Volume Rate Interest-earning assets Loans receivable$(3,931) $(3,312) $(7,243)Debt securities available for sale 522 139 661 Other interest-earning assets 2,111 (1,007) 1,104 Total interest-earning assets (1,298) (4,180) (5,478)Interest-bearing liabilities Interest-bearing checking accounts (147) (604) (751)Money market accounts 823 (4,026) (3,203)Savings accounts (6) (22) (28)Certificate accounts (1,449) (4,405) (5,854)Junior subordinated debt 9 (120) (111)Borrowings (2,485) (280) (2,765)Total interest-bearing liabilities (3,255) (9,457) (12,712)Increase in net interest income $7,234 Provision for Credit Losses. The following table presents a breakdown of the components of the provision for credit losses: Years Ended December 31, (Dollars in thousands) 2025 2024 $ Change % ChangeProvision for credit losses Loans$5,465 $7,460 $(1,995) (27)%Off-balance-sheet credit exposure 1,473 85 1,388 1,633 Total provision for credit losses$6,938 $7,545 $(607) (8)% For the year ended December 31, 2025, the "loans" portion of the provision for credit losses was the result of the following, offset by net charge-offs of $9.3 million during the period: $2.5 million benefit driven by changes in the loan mix.$1.5 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments. Of note, in the quarter ended June 30, 2025, we released the $2.2 million qualitative allocation previously established in the prior year for the potential impact of Hurricane Helene on our loan portfolio. Any residual impact of the Hurricane is believed to have now been reflected elsewhere within the ACL calculation.$0.2 million increase in specific reserves on individually evaluated credits. For the year ended December 31, 2024, the "loans" portion of the provision for credit losses was the result of the following, offset by net charge-offs of $10.8 million during the period: $1.6 million benefit driven by changes in the loan mix.$0.7 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments. Included in this change was the addition of a $2.2 million qualitative allocation in the quarter ended September 30, 2024 for the potential impact of Hurricane Helene on our loan portfolio.$1.0 million decrease in specific reserves on individually evaluated credits. For the years ended December 31, 2025 and December 31, 2024, the amounts recorded for off-balance-sheet credit exposure were the result of changes in the balance of loan commitments, loan mix and the projected economic forecast as outlined above. Noninterest Income. Noninterest income for the year ended December 31, 2025 increased $2.9 million, or 8.6%, when compared to the same period last year. Changes in the components of noninterest income are discussed below: Years Ended December 31, (Dollars in thousands) 2025 2024 $ Change % ChangeNoninterest income Service charges and fees on deposit accounts$9,807 $9,165 $642 7%Loan income and fees 2,772 2,737 35 1 Gain on sale of loans held for sale 7,668 6,253 1,415 23 BOLI income 3,552 4,312 (760) (18)Operating lease income 7,064 7,346 (282) (4)Gain on sale of branches 1,448 — 1,448 100 Gain (loss) on sale of premises and equipment 93 (9) 102 1,133 Other 3,927 3,645 282 8 Total noninterest income$36,331 $33,449 $2,882 9% Gain on sale of loans held for sale: The increase was primarily driven by growth in the volume of HELOCs and residential mortgage loans sold during the current period, partially offset by a reduction in the sales volume of the guaranteed portion of SBA commercial loans. During the year ended December 31, 2025, there were $257.2 million of HELOCs sold with gains of $2.4 million compared to $95.4 million sold with gains of $887,000 in the prior year. There were $113.5 million of residential mortgage loans originated for sale which were sold with gains of $2.4 million compared to $82.0 million sold with gains of $1.4 million in the prior year. There were $40.4 million of sales of the guaranteed portion of SBA commercial loans with gains of $3.0 million compared to $48.7 million sold with gains of $3.9 million during the prior year. Lastly, our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a net loss of $131,000 for the year ended December 31, 2025 versus $81,000 of a net gain in the prior year.BOLI income: The decrease was due to a $1.0 million decrease in tax-free gains on death benefit proceeds in excess of the cash surrender value of the policies year-over-year, partially offset by higher yielding policies as a result of restructuring the portfolio at the end of the calendar year ended December 31, 2023.Gain on sale of branches: During the current year we completed the sale of our two Knoxville, Tennessee branches, recognizing a gain of $1.4 million in the current year, with no similar activity occurring in the prior year. Noninterest Expense. Noninterest expense for the year ended December 31, 2025 decreased $321,000, or 0.3%, when compared to the same period last year. Changes in the components of noninterest expense are discussed below: Years Ended December 31, (Dollars in thousands) 2025 2024 $ Change % ChangeNoninterest expense Salaries and employee benefits$72,956 $67,900 $5,056 7%Occupancy expense, net 10,021 9,768 253 3 Computer services 10,653 12,506 (1,853) (15)Operating lease depreciation expense 7,009 7,734 (725) (9)Telecom, postage and supplies 2,188 2,253 (65) (3)Marketing and advertising 1,879 1,893 (14) (1)Deposit insurance premiums 1,935 2,230 (295) (13)Core deposit intangible amortization 1,747 2,463 (716) (29)Contract renewal consulting fee — 2,965 (2,965) (100)Other 16,788 15,785 1,003 6 Total noninterest expense$125,176 $125,497 $(321) —% Salaries and employee benefits: The increase was primarily the result of increases in both pay and incentive compensation.Computer services: At the end of the prior calendar year, we finalized a multiyear renewal of our largest core processing contract. The decrease in expense period-over-period is a reflection of the improved vendor pricing negotiated through this effort.Operating lease depreciation expense: The decrease was due to a decline in the population of operating lease contracts (assets being depreciated) year-over-year.Deposit insurance premiums: The decrease period-over-period was the result of higher regulatory capital ratios.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.Contract renewal consulting fee: In the prior year we paid a fee to a consultant to negotiate the multiyear renewal of our largest core processing contract, with no similar fee being recognized in the current year.Other: The change period-over-period was driven by increases of $415,000 in community association banking deposit line of business referral fees, $285,000 in losses on the sale of repossessed equipment, and $226,000 in other consulting fees. 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 rate was 20.5% and 21.6% for the years ended December 31, 2025 and 2024, respectively. Balance Sheet ReviewTotal assets decreased by $49.8 million to $4.5 billion and total liabilities decreased by $98.7 million to $3.9 billion at December 31, 2025 as compared to December 31, 2024. These changes can be traced to the use of the proceeds from both loan paydowns and maturities of debt securities and certificates of deposit to offset a $69.2 million decline in deposits. The decrease in deposits was mainly the result of a $115.8 million reduction in brokered deposits and $34.3 million of deposits which were assumed by the purchaser of our two Knoxville, Tennessee branches, partially offset by an increase of $57.0 million in core deposits. Stockholders' equity increased $48.9 million, or 8.9%, to $600.7 million at December 31, 2025 as compared to December 31, 2024. Activity within stockholders' equity included $64.4 million in net income and $5.6 million in share-based compensation and stock option exercises, partially offset by $8.4 million in cash dividends declared and $13.6 million in stock repurchases. In addition, accumulated other comprehensive income improved by $2.3 million due to a reduction in the unrealized loss on available for sale securities due to lower market interest rates. As of December 31, 2025, the Bank was considered "well capitalized" in accordance with its regulatory capital guidelines and exceeded all regulatory capital requirements. Asset QualityThe ACL on loans was $41.5 million, or 1.16% of total loans, at December 31, 2025 compared to $45.3 million, or 1.24% of total loans, at December 31, 2024. The drivers of this change are discussed in the "Comparison of Results of Operations for the Years Ended December 31, 2025 and December 31, 2024 – Provision for Credit Losses" section above. Of note, as of December 31, 2024, the ACL on loans included a $2.2 million qualitative allocation for the potential impact of Hurricane Helene on our loan portfolio, while this allocation had been removed prior to December 31, 2025. Net loan charge-offs totaled $9.3 million for the year ended December 31, 2025 compared to $10.8 million for the prior year. For both periods, net charge-offs were concentrated within our equipment finance portfolio, primarily related to over-the-road truck loans, where we recognized net charge-offs of $6.2 million and $6.7 million for the same periods, respectively. Annualized net charge-offs as a percentage of average loans were 0.24% and 0.28% for the years ended December 31, 2025 and 2024, respectively. Nonperforming assets, made up of nonaccrual loans and repossessed assets, increased by $11.3 million, or 34.1%, to $44.4 million, or 0.98% of total assets, at December 31, 2025 compared to $33.1 million, or 0.72% of total assets, at September 30, 2025. SBA loans made up the largest portion of nonperforming assets at $20.6 million and $11.9 million, respectively, at these same dates of which $14.9 million and $6.6 million, respectively, of these amounts were fully guaranteed. Of the remaining nonperforming assets, equipment finance loans (concentrated in the transportation sector) made up $6.6 million and $5.5 million, respectively, and HELOCs totaled $6.5 million and $5.9 million, respectively, both at these same dates. The ratio of nonperforming loans to total loans was 1.22% at December 31, 2025 compared to 0.89% at September 30, 2025. When adjusted for fully guaranteed loans, the ratio of nonperforming loans to total loans was 0.81% at December 31, 2025 compared to 0.71% at September 30, 2025. Nonperforming assets increased by $15.7 million, or 54.4%, to $44.4 million, or 0.98% of total assets, at December 31, 2025 compared to $28.8 million, or 0.63% of total assets, at December 31, 2024. The ratio of nonperforming loans to total loans was 1.22% at December 31, 2025 compared to 0.76% at December 31, 2024. Classified assets increased by $9.5 million, or 16.8%, to $66.2 million, or 1.46% of total assets, as of December 31, 2025 when compared to the balance of $56.6 million, or 1.23% of total assets, as of September 30, 2025. Similarly, classified assets increased by $17.9 million, or 37.1%, to $66.2 million, or 1.46% of total assets, as of December 31, 2025 when compared to the balance of $48.3 million, or 1.06% of total assets, at December 31, 2024. SBA loans made up the largest portion of classified assets at $27.3 million and $20.0 million, respectively, as of December 31, 2025 and September 30, 2025 of which $19.8 million and $12.7 million, respectively, was fully guaranteed. The remaining population of classified assets at December 31, 2025 included $8.9 million of HELOCs, $8.5 million of equipment finance loans (concentrated in the transportation sector), $7.6 million of non-owner occupied CRE loans, and $7.3 million of 1-4 family residential real estate loans. Lastly, in an effort to assist customers in their post-Hurricane Helene recovery and clean-up efforts, at the end of the prior calendar year we granted payment deferrals of up to six months to provide short-term relief to impacted customers. The outstanding balance of these deferrals declined from $136.0 million at December 31, 2024 to $318,000 at December 31, 2025. To date, $165,000 in charge-offs have been recognized which were directly related to Hurricane Helene. 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 $4.5 billion as of December 31, 2025, the Company’s goal is to continue to be recognized as a high-performing, regional community bank, while our strategy to reach that goal is to be a best place to work. As a reflection of these efforts, the Company has been named one of Bank Director’s “Best U.S. Banks,” one of Forbes’ “America’s Best Banks”, one of S&P Global’s “Top 50 Community Banks,” and named to the 2025 KBW Honor Roll. In addition, the Company has been recognized as one of American Banker’s “Best Banks to Work For,” received a “Most Loved Workplace” certification by Best Practices Institute, named as one of Best Companies Group’s “America’s Best Workplaces,” as well as being named a “Best Place to Work” in all five states in which the Company operates. Forward-Looking StatementsThis 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; 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)December 31,2025 September 30,2025 June 30,2025 March 31,2025 December 31,2024(1)Assets Cash$14,411 $15,435 $16,662 $14,303 $18,778 Interest-bearing deposits 310,281 300,395 280,547 285,522 260,441 Cash and cash equivalents 324,692 315,830 297,209 299,825 279,219 Certificates of deposit in other banks 18,841 20,833 23,319 25,806 28,538 Debt securities available for sale, at fair value 142,540 145,682 143,942 150,577 152,011 FHLB and FRB stock 13,636 14,325 15,263 13,602 13,630 SBIC investments, at cost 18,818 18,346 17,720 17,746 15,117 Loans held for sale, at fair value 7,005 7,907 1,106 2,175 4,144 Loans held for sale, at the lower of cost or fair value 198,688 189,047 169,835 151,164 202,018 Total loans, net of deferred loan fees and costs 3,578,154 3,643,619 3,671,951 3,648,609 3,648,299 Allowance for credit losses – loans (41,479) (43,086) (44,139) (44,742) (45,285)Loans, net 3,536,675 3,600,533 3,627,812 3,603,867 3,603,014 Premises and equipment held for sale, at the lower of cost or fair value 616 616 616 8,240 616 Premises and equipment, net 62,400 62,437 62,706 62,347 69,872 Accrued interest receivable 15,973 17,077 16,554 18,269 18,336 Deferred income taxes, net 9,922 9,789 9,968 9,288 10,735 BOLI 93,930 93,474 92,576 91,715 90,868 Goodwill 34,111 34,111 34,111 34,111 34,111 Core deposit intangibles, net 4,848 5,259 5,670 6,080 6,595 Other assets 62,940 56,871 59,646 63,248 66,606 Total assets$4,545,635 $4,592,137 $4,578,053 $4,558,060 $4,595,430 Liabilities and stockholders' equity Liabilities Deposits$3,709,997 $3,698,227 $3,666,178 $3,736,360 $3,779,203 Junior subordinated debt 10,220 10,195 10,170 10,145 10,120 Borrowings 165,000 230,000 265,000 177,000 188,000 Other liabilities 59,728 57,882 57,431 69,106 66,349 Total liabilities 3,944,945 3,996,304 3,998,779 3,992,611 4,043,672 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) 173 175 175 176 175 Additional paid in capital 166,856 176,289 174,900 176,682 176,693 Retained earnings 436,524 422,615 408,178 393,026 380,541 Unearned Employee Stock Ownership Plan ("ESOP") shares (3,438) (3,571) (3,703) (3,835) (3,966)Accumulated other comprehensive income (loss) 575 325 (276) (600) (1,685)Total stockholders' equity 600,690 595,833 579,274 565,449 551,758 Total liabilities and stockholders' equity$4,545,635 $4,592,137 $4,578,053 $4,558,060 $4,595,430 (1) Derived from audited financial statements.(2) Shares of common stock issued and outstanding were 17,286,289 at December 31, 2025; 17,520,425 at September 30, 2025; 17,492,143 at June 30, 2025; 17,552,626 at March 31, 2025; and 17,527,709 at December 31, 2024. Consolidated Statements of Income (Unaudited) Three Months Ended Years Ended(Dollars in thousands)December 31,2025 September 30,2025 December 31,2025 December 31,2024Interest and dividend income Loans$59,597 $61,749 $240,399 $247,642 Debt securities available for sale 1,599 1,662 6,706 6,045 Other investments and interest-bearing deposits 2,271 1,984 9,033 7,929 Total interest and dividend income 63,467 65,395 256,138 261,616 Interest expense Deposits 18,909 19,474 77,602 87,438 Junior subordinated debt 199 207 817 928 Borrowings 146 325 981 3,746 Total interest expense 19,254 20,006 79,400 92,112 Net interest income 44,213 45,389 176,738 169,504 Provision for credit losses 2,080 2,015 6,938 7,545 Net interest income after provision for credit losses 42,133 43,374 169,800 161,959 Noninterest income Service charges and fees on deposit accounts 2,534 2,527 9,807 9,165 Loan income and fees 926 577 2,772 2,737 Gain on sale of loans held for sale 1,926 1,725 7,668 6,253 BOLI income 976 882 3,552 4,312 Operating lease income 2,032 1,777 7,064 7,346 Gain on sale of branches — — 1,448 — Gain (loss) on sale of premises and equipment 65 — 93 (9)Other 937 1,263 3,927 3,645 Total noninterest income 9,396 8,751 36,331 33,449 Noninterest expense Salaries and employee benefits 18,541 18,508 72,956 67,900 Occupancy expense, net 2,572 2,563 10,021 9,768 Computer services 2,798 2,562 10,653 12,506 Operating lease depreciation expense 1,582 1,770 7,009 7,734 Telecom, postage and supplies 542 539 2,188 2,253 Marketing and advertising 514 471 1,879 1,893 Deposit insurance premiums 483 468 1,935 2,230 Core deposit intangible amortization 411 410 1,747 2,463 Contract renewal consulting fee — — — 2,965 Other 4,251 3,975 16,788 15,785 Total noninterest expense 31,694 31,266 125,176 125,497 Income before income taxes 19,835 20,859 80,955 69,911 Income tax expense 3,711 4,368 16,591 15,106 Net income$16,124 $16,491 $64,364 $54,805 Per Share Data Three Months Ended Years Ended December 31,2025 September 30,2025 December 31,2025 December 31,2024Net income per common share(1) Basic$0.94 $0.96 $3.75 $3.21Diluted$0.93 $0.95 $3.72 $3.20Average shares outstanding Basic 16,936,740 16,998,549 16,987,894 16,914,741Diluted 17,070,906 17,130,030 17,106,783 16,977,330Book value per share at end of period$34.75 $34.01 $34.75 $31.48Tangible book value per share at end of period(2)$32.56 $31.83 $32.56 $29.24Cash dividends declared per common share$0.13 $0.12 $0.49 $0.45Total shares outstanding at end of period 17,286,289 17,520,425 17,286,289 17,527,709 (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 Years Ended December 31,2025 September 30,2025 December 31,2025 December 31,2024Performance ratios(1) Return on assets (ratio of net income to average total assets)1.44% 1.48% 1.46% 1.23%Return on equity (ratio of net income to average equity)10.63 11.10 11.06 10.37 Yield on earning assets6.02 6.21 6.16 6.28 Rate paid on interest-bearing liabilities2.53 2.63 2.62 2.98 Average interest rate spread3.49 3.58 3.54 3.30 Net interest margin(2)4.20 4.31 4.25 4.07 Average interest-earning assets to average interest-bearing liabilities138.36 138.10 137.29 134.60 Noninterest expense to average total assets2.83 2.80 2.84 2.83 Efficiency ratio59.12 57.75 58.75 61.84 Efficiency ratio – adjusted(3)58.80 57.28 58.72 60.28 (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 December 31,2025 September 30,2025 June 30,2025 March 31,2025 December 31,2024Asset quality ratios Nonperforming assets to total assets(1)0.98% 0.72% 0.67% 0.61% 0.63%Nonperforming loans to total loans(1)1.22 0.89 0.81 0.74 0.76 Total classified assets to total assets1.46 1.23 1.07 0.85 1.06 Allowance for credit losses to nonperforming loans(1)94.75 132.26 147.98 165.96 163.68 Allowance for credit losses to total loans1.16 1.18 1.20 1.23 1.24 Net charge-offs to average loans (annualized)0.33 0.29 0.21 0.14 0.19 Capital ratios Equity to total assets at end of period13.21% 12.98% 12.65% 12.41% 12.01%Tangible equity to total tangible assets(2)12.49 12.25 11.91 11.65 11.25 Average equity to average assets13.56 13.31 13.20 12.66 11.90 (1) Nonperforming assets include nonaccruing loans and repossessed assets. There were no accruing loans more than 90 days past due at the dates indicated. At December 31, 2025, $10.1 million, or 23.2%, of nonaccruing loans were current on their loan payments as of that date. For more information, see the "Asset Quality" section above.(2) See Non-GAAP reconciliations below for adjustments. Loans (Dollars in thousands)December 31,2025 September 30,2025 June 30,2025 March 31,2025 December 31,2024Commercial real estate Construction and land development$277,028 $268,953 $267,494 $247,539 $274,356 Commercial real estate – owner occupied 562,049 540,807 561,623 570,150 545,490 Commercial real estate – non-owner occupied 832,502 861,244 877,440 867,711 866,094 Multifamily 110,912 115,403 113,416 118,094 120,425 Total commercial real estate 1,782,491 1,786,407 1,819,973 1,803,494 1,806,365 Commercial loans Commercial and industrial 378,686 399,155 367,359 349,085 316,159 Equipment finance 311,356 340,322 360,499 380,166 406,400 Municipal leases 166,396 164,967 168,623 163,554 165,984 Total commercial 856,438 904,444 896,481 892,805 888,543 Residential real estate Construction and land development 45,617 51,110 53,020 56,858 53,683 One-to-four family 633,511 636,857 640,287 631,537 630,391 HELOCs 217,310 216,122 205,918 199,747 195,288 Total residential real estate 896,438 904,089 899,225 888,142 879,362 Consumer 42,787 48,679 56,272 64,168 74,029 Total loans, net of deferred loan fees and costs 3,578,154 3,643,619 3,671,951 3,648,609 3,648,299 Allowance for credit losses – loans (41,479) (43,086) (44,139) (44,742) (45,285)Loans, net$3,536,675 $3,600,533 $3,627,812 $3,603,867 $3,603,014 Deposits (Dollars in thousands)December 31,2025 September 30,2025 June 30,2025 March 31,2025 December 31,2024Core deposits Noninterest-bearing accounts$707,748 $689,352 $698,843 $721,814 $680,926NOW accounts 546,387 537,954 561,524 573,745 575,238Money market accounts 1,374,635 1,343,008 1,323,762 1,357,961 1,341,995Savings accounts 171,455 172,883 179,980 184,396 181,317Total core deposits 2,800,225 2,743,197 2,764,109 2,837,916 2,779,476Certificates of deposit 909,772 955,030 902,069 898,444 999,727Total$3,709,997 $3,698,227 $3,666,178 $3,736,360 $3,779,203 Non-GAAP ReconciliationsIn 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 Years Ended(Dollars in thousands)December 31,2025 September 30,2025 December 31,2025 December 31,2024Noninterest expense$31,694 $31,266 $125,176 $125,497 Less: contract renewal consulting fee — — — 2,965 Noninterest expense – adjusted$31,694 $31,266 $125,176 $122,532 Net interest income$44,213 $45,389 $176,738 $169,504 Plus: tax-equivalent adjustment 448 440 1,737 1,460 Plus: noninterest income 9,396 8,751 36,331 33,449 Less: BOLI death benefit proceeds in excess of cash surrender value 92 — 92 1,143 Less: gain on sale of branches — — 1,448 — Less: gain (loss) on sale of premises and equipment 65 — 93 (9)Net interest income plus noninterest income – adjusted$53,900 $54,580 $213,173 $203,279 Efficiency ratio 59.12% 57.75% 58.75% 61.84%Efficiency ratio – adjusted 58.80% 57.28% 58.72% 60.28% 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)December 31,2025 September 30,2025 June 30,2025 March 31,2025 December 31,2024Total stockholders' equity$600,690 $595,833 $579,274 $565,449 $551,758Less: goodwill, core deposit intangibles, net of taxes 37,844 38,160 38,477 38,793 39,189Tangible book value$562,846 $557,673 $540,797 $526,656 $512,569Common shares outstanding 17,286,289 17,520,425 17,492,143 17,552,626 17,527,709Book value per share$34.75 $34.01 $33.12 $32.21 $31.48Tangible book value per share$32.56 $31.83 $30.92 $30.00 $29.24 Set forth below is a reconciliation to GAAP of tangible equity to tangible assets: As of(Dollars in thousands)December 31,2025 September 30,2025 June 30,2025 March 31,2025 December 31,2024Tangible equity(1)$562,846 $557,673 $540,797 $526,656 $512,569Total assets 4,545,635 4,592,137 4,578,053 4,558,060 4,595,430Less: goodwill, core deposit intangibles, net of taxes 37,844 38,160 38,477 38,793 39,189Total tangible assets$4,507,791 $4,553,977 $4,539,576 $4,519,267 $4,556,241 Tangible equity to tangible assets 12.49 % 12.25 % 11.91 % 11.65 % 11.25 % (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 OfficerTony J. VunCannon – Executive Vice President, Chief Financial Officer, Corporate Secretary and Treasurer828-259-3939