HomeTrust Bancshares, Inc. announced preliminary net income of $17.2 million, or $1.00 per diluted share, for the second quarter ended June 30, 2025. This marks an 18.4% increase from the $14.5 million, or $0.84 per diluted share, reported in the prior quarter. The results benefited from a $1.3 million increase in net interest income and a $2.1 million increase in noninterest income, which included a $1.4 million gain on the sale of two branch locations.
The net interest margin further expanded to 4.32% in Q2 2025, demonstrating continued effective balance sheet management. Total interest expense decreased by $1.3 million, or 6.3%, primarily due to a decline in the average balance of brokered deposits and a lower average cost of funds. For the six months ended June 30, 2025, net income totaled $31.7 million, or $1.84 per diluted share, an increase of 15.5% from $27.5 million, or $1.61 per diluted share, in the same period last year.
During the quarter, HomeTrust Bancshares completed the previously announced sale of its two Knoxville, Tennessee branches. This transaction is part of the company's strategy to optimize its geographic footprint and improve branch efficiencies, allowing for better capital allocation to support growth in other core markets. The sale included the assumption of $34.3 million in customer deposits by the purchaser.
Asset quality metrics showed some shifts, with nonperforming assets increasing by $2.5 million, or 8.9%, to $30.5 million, or 0.67% of total assets, at June 30, 2025, compared to March 31, 2025. Net loan charge-offs totaled $2.0 million for the quarter, up from $1.3 million in the prior quarter. However, for the six months ended June 30, 2025, net loan charge-offs decreased to $3.3 million compared to $4.9 million in the same period last year.
The allowance for credit losses on loans stood at $44.1 million, representing 1.20% of total loans, at June 30, 2025. Total deposits declined by $113.0 million over the six months ended June 30, 2025, mainly due to a $96.5 million reduction in brokered deposits and the deposits assumed in the branch sale. The Board of Directors declared a quarterly cash dividend of $0.12 per common share, payable on August 28, 2025.
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