Key Takeaways
📈 HomeTrust offers a 1.33% dividend yield with a low 14.56% payout ratio, showing room for future growth and strong coverage.
💵 Operating cash flow reached $125.7 million over the trailing twelve months, with free cash flow improving to $109.8 million, supporting ongoing shareholder returns.
🔍 Analysts maintain a positive outlook with a consensus price target of $43.50, following recent upgrades driven by strong earnings and a stable outlook.
Updated 5/13/25
HomeTrust Bancshares, Inc. is a North Carolina-based regional bank with a growing presence across the Southeastern United States. The company has built a solid foundation through disciplined lending, careful risk management, and a focus on long-term performance rather than short-term growth spikes. Its leadership team, led by CEO Hunter Westbrook, continues to prioritize operational efficiency, conservative financial practices, and strategic market positioning.
The bank recently posted strong quarterly results, highlighted by growing earnings, a rising net interest margin, and a healthy return on equity. With a stable dividend, a low payout ratio, and a steadily increasing stock price, HomeTrust continues to attract attention from dividend-focused investors and analysts who see potential for further upside.
Recent Events
In the most recent quarter ending March 2025, HomeTrust delivered diluted earnings per share of $3.16 on a trailing twelve-month basis. Revenues for the same period came in at $193.95 million, showing a slight uptick of 1.1% from the year before. While not explosive growth, the consistency is important—especially considering that many regional banks are struggling with tighter margins in the current interest rate climate.
Net income is holding strong, with a profit margin of nearly 28% and an operating margin north of 39%. Return on equity is sitting comfortably above 10%, which tells us that management is using shareholder capital effectively. There’s a healthy buffer here between earnings and payouts, and that’s exactly what income investors should want to see.
The stock itself has been climbing, too. It’s up over 28% in the past 12 months, pushing the company’s market cap above $630 million. That price momentum isn’t a fluke—it reflects investor confidence in a business that keeps things simple and efficient.
Key Dividend Metrics
📈 Forward Dividend Yield: 1.33%
💰 Annual Dividend Rate: $0.48
🔁 Payout Ratio: 14.56%
📅 Next Dividend Date: May 29, 2025
⏰ Ex-Dividend Date: May 15, 2025
📊 5-Year Average Yield: 1.45%
🧮 Trailing Dividend Yield: 1.27%
🛡️ Dividend Safety Indicator: Strong coverage, low payout risk
Dividend Overview
A 1.33% yield might not grab attention right away, but that figure only tells part of the story. What makes HomeTrust’s dividend compelling isn’t how big it is—it’s how sustainable it is. The company is only using about 15% of its earnings to fund the dividend. That leaves a lot of room to maneuver, especially in a sector where unpredictability is always a concern.
This low payout ratio gives the bank flexibility. Should earnings dip or credit conditions tighten, the dividend isn’t likely to be in jeopardy. In fact, the conservative approach suggests management could even boost payouts in the future, assuming profits remain steady.
The next dividend is just around the corner, scheduled for late May, with shares going ex-dividend on the 15th. It’s part of the regular rhythm investors can count on, with payments that keep showing up quarter after quarter.
Dividend Growth and Safety
Over the past few years, HomeTrust hasn’t made dramatic moves with its dividend, but it has steadily increased it. The trailing annual payout of $0.46 has moved up to $0.48, and while that may not seem huge, the consistency matters. Each raise signals confidence from management and a desire to reward patient investors.
The company’s dividend track record also benefits from strong balance sheet fundamentals. With over $325 million in cash and only around $197 million in debt, the capital structure looks healthy. The return on assets is 1.17%, not eye-popping, but respectable—and more importantly, it’s consistent.
What’s really encouraging is how little the business depends on volatility to perform. The stock has a beta of just 0.73, which means it tends to move less than the broader market. That kind of calm behavior can be especially valuable for income investors who are more focused on collecting reliable payouts than riding the market’s rollercoaster.
HomeTrust’s dividend doesn’t try to be flashy. It’s not a high-yield play, and it’s not built on aggressive financial engineering. What it does offer is a stable, well-covered stream of income, backed by a conservative management team that seems to understand the long game.
If you’re looking for a dependable addition to a dividend-focused portfolio—one that prioritizes strength, coverage, and long-term value over short-term buzz—HomeTrust Bancshares fits that mold well.
Cash Flow Statement
HomeTrust Bancshares has generated a solid $125.7 million in operating cash flow over the trailing twelve months (TTM), which marks a significant uptick from the $44.97 million posted at the end of 2024. This strong internal cash generation is especially noteworthy considering the bank’s earlier periods of volatility, including a negative figure just two years ago. Free cash flow followed suit, climbing to $109.8 million—evidence that the company is not just profitable on paper but is also converting earnings into usable, tangible cash.
On the investing side, outflows of $21.2 million suggest continued investment activity, though at a far more tempered pace than in prior years. Financing cash flow tells the other half of the story: HomeTrust returned a substantial $185.1 million to shareholders and debt holders combined. The largest component here is debt repayment, which totaled $131.25 million. With capital expenditures steady around $15.9 million and minimal share repurchases, the company appears to be prioritizing balance sheet strength and liquidity. That focus is reflected in the rising cash position, which stands at $299.8 million—a marked increase from $105.1 million just a few years ago.
Analyst Ratings
HomeTrust Bancshares has recently caught the eye of analysts with a more optimistic outlook. In March 2025, one firm initiated coverage with an “Overweight” rating 🟢 and set a price target of $43. The reasoning behind the upgrade points to the bank’s consistent earnings trajectory, solid credit performance, and conservative management style that has kept the institution resilient despite broader headwinds in the banking sector.
Earlier in 2024, another analyst moved the stock from a “Market Perform” 🟡 to “Outperform” 🟢 rating. This shift was grounded in improving financial health, notably a strong capital position and a disciplined lending approach. The analysts noted that HomeTrust’s ability to manage interest rate sensitivity more effectively than peers played a role in that outlook adjustment.
Right now, the consensus 12-month price target sits around $43.50 📈, suggesting there’s still some room to run from the current price. That expectation hinges on the bank maintaining its steady earnings pace and continuing to manage risk well—both of which seem likely given recent trends. The sentiment from the analyst community leans toward cautious optimism, with appreciation for the company’s methodical growth strategy and durable fundamentals.
Earning Report Summary
Solid Start to 2025
HomeTrust Bancshares kicked off 2025 with a steady and confident performance. The bank reported net income of $14.5 million for the quarter, which worked out to $0.84 per diluted share. That’s a slight bump from the previous quarter, where earnings came in at $0.83 per share. These aren’t dramatic leaps, but they reflect a business that’s been managing its balance sheet carefully and executing with discipline.
Return on assets moved up to 1.33%, and return on equity reached 10.52%. Those numbers show HomeTrust is doing a solid job putting both its capital and assets to work. What really stood out this quarter was the improvement in net interest margin, which edged up to 4.18%. That uptick came from the company managing to lower its funding costs even as asset yields dipped a bit. It’s a subtle but meaningful shift, and one that gives the bank a little more breathing room in its core lending business.
Credit provisions ticked up to $1.5 million this quarter, compared to a credit benefit in the prior period. It’s a move that suggests the bank is preparing for potential challenges rather than reacting to current ones. That kind of cautious stance has been part of HomeTrust’s playbook for a while now, and it shows up in other decisions too.
The company held its dividend steady at $0.12 per share, distributing about $2.1 million back to shareholders. On top of that, HomeTrust repurchased nearly 15,000 shares at an average price of $33.64. These aren’t huge numbers, but they’re deliberate and show a leadership team that believes in the long-term value of the business.
Strategic Shifts and Future Outlook
A couple of strategic moves were also worth noting. HomeTrust made the switch to the New York Stock Exchange, now trading under the symbol HTB. It’s a shift that brings a bit more visibility and might attract new investors. At the same time, the company announced plans to sell two branches in Knoxville. That’s part of a broader strategy to sharpen its focus on core markets and streamline its operations.
CEO Hunter Westbrook commented that the company is concentrating on solid financial performance over chasing loan growth just for the sake of it. His message was clear: HomeTrust isn’t trying to outpace the market; it’s working to stay strong, predictable, and sustainable. He also pointed out that the company doesn’t expect to see much disruption from broader economic headwinds, which adds a little more reassurance for investors who value stability.