Updated 3/10/25
HomeTrust Bancshares, Inc. (NASDAQ: HTB) is a regional bank holding company based in North Carolina, operating through HomeTrust Bank. It serves customers across several Southeastern states, offering everything from mortgage lending to commercial banking and deposit services. Over the years, HomeTrust has expanded its footprint through acquisitions and organic growth, maintaining a steady financial position along the way.
For investors focused on dividends, HTB might not be a high-yield pick, but it does offer a stable and well-managed payout. The company’s approach to dividends reflects a balance between returning cash to shareholders and reinvesting in future growth. With solid earnings coverage and financial strength, this stock is an interesting option for those prioritizing steady, long-term dividend income.
Key Dividend Metrics
🔹 Dividend Yield: 1.37%
🔹 Annual Dividend Per Share: $0.48
🔹 Payout Ratio: 14.06% (low, suggesting sustainability)
🔹 5-Year Average Dividend Yield: 1.46%
🔹 Dividend Growth: Positive trend in recent years
🔹 Ex-Dividend Date: February 13, 2025
🔹 Next Dividend Payment Date: February 27, 2025
Dividend Overview
HTB’s dividend yield of 1.37% isn’t going to make headlines, but it’s steady and well-covered. The company keeps its payout ratio low, which means there’s plenty of room for increases in the future. Compared to some higher-yielding regional banks, this stock prioritizes financial discipline over aggressive payouts, which can be appealing to long-term investors.
The consistency in payments signals management’s commitment to rewarding shareholders while maintaining flexibility. A modest yield combined with strong fundamentals makes HTB a solid choice for investors looking for a mix of growth and stability.
Dividend Growth and Safety
HTB has been increasing its dividend over time, though at a measured pace. The five-year average yield of 1.46% shows that the stock has provided relatively stable income over time.
One of the standout aspects is the company’s payout ratio of just 14.06%. That’s incredibly low for a bank, meaning there’s no strain on earnings when it comes to paying dividends. This also leaves plenty of room for increases, which is something dividend investors should appreciate.
The return on equity (ROE) of 10.42% also indicates that management is using shareholder capital efficiently. A strong ROE combined with a conservative payout strategy suggests dividends can continue growing steadily without jeopardizing financial stability.
Chart Analysis
Price Movement and Trend
The stock has been in an overall uptrend since mid-2024, with a clear push higher that started around June. The price gained momentum in the second half of the year, reaching its peak near $39 before pulling back. It is currently trading around $35.07 after showing some recent weakness.
The 50-day moving average has been acting as a support level for much of this run, but the price has now slipped below it. This could indicate that the bullish momentum is fading, and traders may start looking at the 200-day moving average for the next potential support zone.
Moving Averages
The 50-day moving average has been trending well above the 200-day moving average, a sign of a strong longer-term uptrend. However, the stock has started hovering near the 50-day moving average, suggesting that short-term sentiment may be shifting.
The 200-day moving average remains in an upward trajectory, indicating that the long-term trend is still positive. If the price continues to decline, a test of this level could be on the horizon.
Volume Activity
Volume has been relatively stable, with no significant spikes in recent sessions. The biggest volume surges occurred in mid-July and early October, coinciding with large price movements. The lack of volume in recent days suggests that there is no major buying interest stepping in at current levels.
A volume increase on a strong upward move would signal renewed buying pressure, while a surge in volume on a downward move could indicate that more sellers are stepping in.
RSI and Momentum
The Relative Strength Index (RSI) has been declining, showing that momentum is weakening. It has moved down from overbought levels in early 2025 and is now approaching a more neutral zone. If the RSI continues to slide, it could indicate further downside potential.
A bounce from oversold conditions could attract buyers, but at the moment, the RSI suggests that the stock is losing steam rather than gearing up for another strong move higher.
Recent Candlestick Action
The last five trading sessions show a mix of indecision and selling pressure. The wicks on some of these candles indicate attempts to push higher, but sellers have been in control, capping gains.
The most recent candle shows a close near the lower end of the day’s range, which suggests that sellers had the upper hand going into the session close. If this pattern continues, the stock may struggle to regain upward momentum in the short term.
Analyst Ratings
HomeTrust Bancshares, Inc. (HTBI) has recently experienced a mix of analyst upgrades and downgrades, reflecting diverse opinions on the company’s future performance.
Upgrades:
- 🟢 Keefe, Bruyette & Woods (KBW): In October 2024, KBW analyst Wood Lay reiterated a Buy rating on HTBI, setting a price target of $39.00. This positive stance suggests confidence in the company’s strategic direction and financial health.
Downgrades:
- 🔴 Raymond James: On October 28, 2024, Raymond James downgraded HTBI from Outperform to Market Perform. This adjustment indicates a more cautious outlook, possibly due to valuation concerns or anticipated challenges in the regional banking sector.
Consensus Price Target:
📈 The average price target for HTBI stands at $43.00, based on recent analyst reports. This consensus reflects an optimistic view of the company’s prospects, suggesting potential for stock appreciation.
These varied ratings highlight the differing perspectives among analysts regarding HTBI’s valuation and growth potential. Investors should consider these insights alongside their own research and individual investment strategies when evaluating the stock.
Earnings Report Summary
HomeTrust Bancshares wrapped up the fourth quarter of 2024 on a solid note, posting a net income of $14.2 million. That’s a nice step up from the $13.1 million reported in the previous quarter. Earnings per share landed at $0.83, which was also higher than the prior quarter’s $0.76. The company’s return on assets improved to 1.27%, while return on equity came in at 10.32%, both showing positive movement.
One of the key drivers behind the stronger performance was net interest income, which totaled $43.2 million for the quarter. The net interest margin ticked up slightly to 4.09%, a small but meaningful increase from 4.00% in the previous quarter. Another bright spot was the provision for credit losses, which actually swung in HomeTrust’s favor with a benefit of $855,000 this quarter. That’s a big shift from the $3 million set aside for potential losses in the prior period.
Looking at the full year, HomeTrust brought in $54.8 million in net income, an improvement from the $50 million recorded in the previous year. Earnings per share for the year climbed to $3.20, up from $2.97. The company maintained a return on assets of 1.23% and a return on equity of 10.37%, both solid figures in the banking sector.
While net interest income for the year came in at $168.7 million—just slightly below last year’s $169.4 million—the bank was able to reduce its provision for credit losses significantly, dropping from $15.1 million the previous year to just $7.5 million. That’s a sign of improving credit quality and fewer concerns about loan defaults.
For dividend investors, the board announced a quarterly cash dividend of $0.12 per share, a slight increase from the previous payout of $0.11. Shareholders of record as of February 13, 2025, will receive the payment on February 27.
As of the end of the year, HomeTrust reported total assets of $4.6 billion. The bank continues to focus on strengthening its net interest margin and keeping asset quality high. On top of that, it’s been recognized as one of the best places to work in multiple states, which speaks to the company’s culture and long-term commitment to growth.
Financial Health and Stability
Profitability and Efficiency
- Net Profit Margin: 28.33%
- Operating Margin: 37.12%
- Return on Assets (ROA): 1.18%
- Return on Equity (ROE): 10.42%
These numbers point to a well-run operation with strong margins. The bank is doing a good job of turning revenue into profit, which is crucial for sustaining dividend payments.
Balance Sheet Strength
- Total Cash: $307.76M
- Total Debt: $198.12M
- Book Value Per Share: $31.79
HTB’s balance sheet is in great shape, with cash holdings exceeding total debt. That financial flexibility is a major positive, as it allows the company to continue dividends and reinvest in growth without worrying about debt constraints. The book value per share compared to the stock price suggests that shares are fairly valued.
Valuation and Stock Performance
Current Valuation Metrics
- Price-to-Earnings (P/E) Ratio: 10.96
- Forward P/E: 11.34
- Price-to-Sales: 2.95
- Price-to-Book: 1.11
HTB is trading at a reasonable valuation, with a P/E ratio that’s in line with industry peers. The price-to-book ratio of 1.11 suggests the stock isn’t significantly overvalued, making it an attractive option for those looking for a well-priced regional bank with stable earnings.
Stock Performance
- 52-Week Range: $23.55 – $38.99
- 50-Day Moving Average: $35.55
- 200-Day Moving Average: $33.84
- Beta: 0.84 (less volatile than the market)
The stock has seen solid price movement over the past year, hitting a high of $38.99 before pulling back. While it has fluctuated, the relatively low beta of 0.84 means it’s not as volatile as some other financial stocks. Investors looking for stability will find that appealing.
Risks and Considerations
Interest Rate Sensitivity
As with any bank, HTB’s earnings are tied to interest rate movements. If rates drop, net interest margins could be pressured, impacting profitability.
Moderate Dividend Yield
While the dividend is safe and growing, the yield isn’t particularly high. Investors looking for bigger payouts may prefer other banking stocks with higher yields.
Regional Economic Exposure
Since HTB operates primarily in the Southeastern U.S., any regional economic slowdown could impact loan growth and profitability. A diversified national bank would have broader exposure, reducing that risk.
Stock Price Fluctuations
Even though the company has a solid financial foundation, the stock price has moved significantly over the past year. Investors should be prepared for potential volatility, especially in uncertain economic conditions.
Final Thoughts
HomeTrust Bancshares is a strong, well-managed regional bank that takes a conservative approach to dividends. With a low payout ratio, solid profitability, and a strong balance sheet, the company offers a reliable and sustainable dividend, even if the yield isn’t the highest.
For those focused on dividend safety and long-term growth potential, HTB is worth considering. The company’s track record of financial discipline suggests dividends will continue rising over time. While economic cycles and interest rate risks remain factors to watch, HTB’s fundamentals make it a steady choice for investors who value financial strength over high yields.
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