ASHEVILLE: HomeTrust Bancshares Inc (HTB.N) on Tuesday reported a slight dip in quarterly profit but raised its dividend, citing strong underlying performance and a solid capital position.
The North Carolina-based bank holding company announced preliminary net income of $16.5 million, or $0.95 per diluted share, for the third quarter ending September 30, 2025. This compares to $17.2 million, or $1.00 per share, in the previous quarter, according to a statement.
The quarter-on-quarter decline was primarily due to the absence of a $1.4 million gain from the sale of two Knoxville branches, which had boosted the prior quarter’s results. The company also set aside more money for potential credit losses, with the provision increasing to $2.0 million from $1.3 million.
Despite the quarterly dip, the company’s performance improved significantly compared to the first nine months of the previous year. Net income for the period was $48.2 million, a 19% increase from the $40.6 million reported for the same period in 2024.
In a sign of confidence, HomeTrust’s board declared a quarterly cash dividend of $0.13 per common share, an 8.3% increase from the previous $0.12 payout. This marks the company’s seventh dividend increase since it began paying dividends in 2018.
“We are pleased to report another quarter of strong financial performance,” said Hunter Westbrook, President and Chief Executive Officer. “Our quarterly earnings per share have grown 25% year-over-year, driven by a top quartile net interest margin of 4.31% and continued expense discipline.”
Westbrook added that the company is “well-positioned to accelerate loan growth in future quarters” thanks to a solid capital position and an improving yield curve. He also noted the one-year anniversary of Hurricane Helene, praising the resilience of employees and customers.
The bank’s net interest margin, a key measure of lending profitability, remained stable at 4.31%, compared to 4.32% in the prior quarter. For the nine-month period, the margin improved to 4.27% from 4.06% a year earlier.
The company did not repurchase any shares in the third quarter, after buying back 78,412 shares at an average price of $35.74 in the previous quarter.
The increased dividend is payable on November 28, 2025, to shareholders of record as of November 14, 2025.