HomeTrust Stock Rises on Strong Earnings, Dividend Boost
The regional lender surpassed Q4 profit and revenue forecasts, but a rise in nonperforming assets reflects wider concerns in the banking sector.
Shares of HomeTrust Bancshares (NYSE: HTB) advanced in trading after the Asheville, North Carolina-based bank reported fourth-quarter financial results that exceeded analyst expectations and announced an increase to its quarterly dividend.
The company posted diluted earnings per share of $0.93, beating consensus estimates of $0.78 by nearly 20%. Revenue for the quarter reached $53.6 million, surpassing Wall Street's forecast of $50.8 million. Following the strong performance, HomeTrust's board approved an 8.3% increase in the quarterly cash dividend to $0.13 per share, signaling confidence in the bank's continued financial stability.
In a statement accompanying the results, the company's CEO noted that HomeTrust is "poised to accelerate loan growth in 2026," providing a positive outlook for the coming years. This forward guidance, combined with the robust earnings, appeared to resonate with investors.
The positive report, however, was accompanied by a note of caution. HomeTrust disclosed that its nonperforming assets had increased by 34.1% sequentially. While the absolute level remains manageable relative to the bank's total assets, the significant jump points to potential credit quality pressures.
This development at HomeTrust mirrors a broader trend challenging the U.S. regional banking sector. Many smaller lenders are grappling with troubled loans, particularly within their commercial real estate (CRE) portfolios, as property values and occupancy rates face pressure. Investors have been closely monitoring asset quality metrics across the industry as a key indicator of financial health following a period of rising interest rates.
The sector has recently benefited from stabilizing net interest margins and renewed investor confidence, but concerns over CRE exposure remain a persistent headwind. HomeTrust’s results present a microcosm of this dynamic, showcasing strong core profitability alongside emerging credit risks.
Following the earnings release, market data showed HTB trading near the top of its 52-week range. The stock holds a consensus "Moderate Buy" rating from analysts, with an average price target of $48.50, suggesting further potential upside. For now, investors are balancing the bank's demonstrated earnings power and shareholder returns against the broader economic uncertainties affecting its loan portfolio.