For the quarter ended March 31, 2026 compared to the quarter ended December 31, 2025:
net income was $16.8 million compared to $16.1 million;
diluted earnings per share ("EPS") were $0.99 compared to $0.93;
annualized return on assets ("ROA") was 1.55% compared to 1.44%;
annualized return on equity ("ROE") was 11.35% compared to 10.63%;
net interest margin was 4.31% compared to 4.20%;
provision for credit losses was $370,000 compared to $2.1 million;
quarterly cash dividends continued at $0.13 per share totaling $2.2 million for both periods; and
533,240 shares of Company common stock were repurchased during the current quarter at an average price of $42.85 compared to 241,201 shares repurchased at an average price of $42.19 in the prior quarter.
The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.15 per common share, reflecting a $0.02, or 15.4%, increase over the previous quarter's dividend. This is the eighth increase of the quarterly dividend since the Company initiated cash dividends in November 2018. The dividend is payable on May 28, 2026 to shareholders of record as of the close of business on May 14, 2026.
"During the first quarter, we accelerated our pace of stock buybacks as part of our ongoing and prudent capital allocation strategy," said Hunter Westbrook, President and Chief Executive Officer. "We also announced today an increase in our quarterly dividend, further demonstrating our confidence in the Company's strength and future financial performance. Looking ahead, we remain poised to accelerate loan growth in the second half of 2026.
"Our strong 2025 financial results carried into the first quarter of 2026, highlighted by our top quartile net interest margin which expanded to 4.31%, as deposit mix changes and reductions in funding costs outpaced a slight decline in asset yields.
"Lastly, earlier this month we announced our partnership with the Asheville Tourists Baseball Team, the High-A affiliate of the Houston Astros, where their newly renovated ballpark has been renamed HomeTrust Park. This initiative reflects our continued commitment to supporting the people and communities we are proud to serve."
WEBSITE: WWW.HTB.COM
Comparison of Results of Operations for the Three Months Ended March 31, 2026 and December 31, 2025Net Income. Net income totaled $16.8 million, or $0.99 per diluted share, for the three months ended March 31, 2026 compared to $16.1 million, or $0.93 per diluted share, for the three months ended December 31, 2025, an increase of $648,000, or 4.0%. The results for the three months ended March 31, 2026 compared to the three months ended December 31, 2025 benefited from a $1.7 million decrease in the provision for credit losses and a $635,000 increase in noninterest income, partially offset by a $1.3 million increase in the 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.
Three Months Ended
March 31, 2026
December 31, 2025
(Dollars in thousands)
AverageBalanceOutstanding
InterestEarned /Paid
Yield /Rate
AverageBalanceOutstanding
InterestEarned /Paid
Yield /Rate
Assets
Interest-earning assets
Loans receivable(1)
$
3,793,994
$
57,725
6.17
%
$
3,809,902
$
59,597
6.21
%
Debt securities available for sale
144,520
1,604
4.50
147,247
1,599
4.31
Other interest-earning assets(2)
227,051
2,168
3.87
223,267
2,271
4.04
Total interest-earning assets
4,165,565
61,497
5.99
4,180,416
63,467
6.02
Other assets
218,936
255,547
Total assets
$
4,384,501
$
4,435,963
Liabilities and equity
Interest-bearing liabilities
Interest-bearing checking accounts
$
561,216
$
1,101
0.80
%
$
540,889
$
1,013
0.74
%
Money market accounts
1,369,569
8,616
2.55
1,361,620
9,192
2.68
Savings accounts
170,227
28
0.07
171,803
30
0.07
Certificate accounts
830,675
7,105
3.47
926,678
8,674
3.71
Total interest-bearing deposits
2,931,687
16,850
2.33
3,000,990
18,909
2.50
Junior subordinated debt
10,231
188
7.45
10,204
199
7.74
Borrowings
16,667
154
3.75
10,152
146
5.71
Total interest-bearing liabilities
2,958,585
17,192
2.36
3,021,346
19,254
2.53
Noninterest-bearing deposits
759,493
751,864
Other liabilities
67,106
61,085
Total liabilities
3,785,184
3,834,295
Stockholders' equity
599,317
601,668
Total liabilities and stockholders' equity
$
4,384,501
$
4,435,963
Net earning assets
$
1,206,980
$
1,159,070
Average interest-earning assets to average interest-bearing liabilities
140.80
%
138.36
%
Non-tax-equivalent
Net interest income
$
44,305
$
44,213
Interest rate spread
3.63
%
3.49
%
Net interest margin(3)
4.31
%
4.20
%
Tax-equivalent(4)
Net interest income
$
44,740
$
44,661
Interest rate spread
3.67
%
3.54
%
Net interest margin(3)
4.36
%
4.24
%
(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 $435 and $448 for the three months ended March 31, 2026 and December 31, 2025, respectively, calculated based on combined federal and state tax rates of 23% and 24% for the same periods, respectively.
Total interest and dividend income for the three months ended March 31, 2026 decreased $2.0 million, or 3.1%, when compared to the three months ended December 31, 2025. A decline of $1.9 million, or 3.1%, in loan interest income drove this change, primarily due to fewer days in the current quarter and the impact of decreases in the federal funds rate upon loan yields, partially offset by an increase of $348,000 in accretion income.
Total interest expense for the three months ended March 31, 2026 decreased $2.1 million, or 10.7%, when compared to the three months ended December 31, 2025. A decline of $2.1 million, or 10.9%, in deposit interest expense drove this change, the result of a decline in the average balance of certificate accounts, specifically brokered deposits, a decline in the average cost of funds across funding categories, and fewer days in the current quarter.
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
$
(1,532
)
$
(340
)
$
(1,872
)
Debt securities available for sale
(65
)
70
5
Other interest-earning assets
(10
)
(93
)
(103
)
Total interest-earning assets
(1,607
)
(363
)
(1,970
)
Interest-bearing liabilities
Interest-bearing checking accounts
14
74
88
Money market accounts
(138
)
(438
)
(576
)
Savings accounts
(1
)
(1
)
(2
)
Certificate accounts
(1,057
)
(512
)
(1,569
)
Junior subordinated debt
(3
)
(8
)
(11
)
Borrowings
91
(83
)
8
Total interest-bearing liabilities
(1,094
)
(968
)
(2,062
)
Increase in net interest income
$
92
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)
March 31, 2026
December 31, 2025
$ Change
% Change
Provision for credit losses
Loans
$
945
$
1,525
$
(580
)
(38
)%
Off-balance sheet credit exposure
(575
)
555
(1,130
)
(204
)
Total provision for credit losses
$
370
$
2,080
$
(1,710
)
(82
)%
For the quarter ended March 31, 2026, the "loans" portion of the provision for credit losses was primarily the result of the following, offset by net charge-offs of $1.8 million during the quarter:
$0.5 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 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 quarters ended March 31, 2026 and December 31, 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 March 31, 2026 increased $635,000, or 6.8%, when compared to the quarter ended December 31, 2025. Changes in the components of noninterest income are discussed below:
Three Months Ended
(Dollars in thousands)
March 31, 2026
December 31, 2025
$ Change
% Change
Noninterest income
Service charges and fees on deposit accounts
$
2,414
$
2,534
$
(120
)
(5
)%
Loan income and fees
692
926
(234
)
(25
)
Gain on sale of loans held for sale
2,654
1,926
728
38
Bank owned life insurance ("BOLI") income
892
976
(84
)
(9
)
Operating lease income
1,892
2,032
(140
)
(7
)
Gain on sale of premises and equipment
377
65
312
480
Other
1,110
937
173
18
Total noninterest income
$
10,031
$
9,396
$
635
7
%
Loan income and fees: The decrease was primarily the result of $144,000 less in interest rate swap fees in addition to smaller decreases 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 HELOC loans originated for sale, partially offset by reduced sales volume of residential mortgage loans and SBA commercial loans. There were $103.0 million of HELOCs originated for sale which were sold during the current quarter with gains of $934,000 compared to $13.7 million sold with gains of $121,000 in the prior quarter. There were $23.3 million of residential mortgage loans sold for gains of $431,000 during the current quarter compared to $31.1 million sold with gains of $606,000 in the prior quarter. There were $16.4 million in sales of the guaranteed portion of SBA commercial loans with gains of $1.2 million for the current quarter compared to $18.9 million sold and gains of $1.5 million for the prior quarter. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a net gain of $68,000 for the current quarter compared to a net loss of $295,000 for the prior quarter.
Gain on sale of premises and equipment: In both periods presented, gains were recognized on the sale of excess parcels of land.
Noninterest Expense. Noninterest expense for the three months ended March 31, 2026 increased $1.3 million, or 4.0%, when compared to the three months ended December 31, 2025. Changes in the components of noninterest expense are discussed below:
Three Months Ended
(Dollars in thousands)
March 31, 2026
December 31, 2025
$ Change
% Change
Noninterest expense
Salaries and employee benefits
$
19,877
$
18,541
$
1,336
7
%
Occupancy expense, net
2,630
2,572
58
2
Computer services
2,877
2,798
79
3
Operating lease depreciation expense
1,516
1,582
(66
)
(4
)
Telecom, postage and supplies
581
542
39
7
Marketing and advertising
417
514
(97
)
(19
)
Deposit insurance premiums
484
483
1
—
Core deposit intangible amortization
374
411
(37
)
(9
)
Other
4,219
4,251
(32
)
(1
)
Total noninterest expense
$
32,975
$
31,694
