HomeTrust Bancshares | research notes

Introducing HomeTrust Bancshares: A Leading Community Bank in the Southeast

Overview

HomeTrust Bancshares, Inc. (HTBI) is a publicly traded community bank holding company headquartered in Asheville, North Carolina. The company operates a network of over 50 branches across Tennessee, North Carolina, South Carolina, and Virginia, and has a long track record of providing financial services to its communities.

History

HomeTrust traces its roots back to 1917 when it was founded as the Broad River Banking Company in Rutherford County, North Carolina. Over the decades, the bank has grown through a series of acquisitions and mergers, expanding its reach into multiple states. In 1998, the company became a publicly traded company and adopted the name HomeTrust Bancshares.

Business Model

HomeTrust Bancshares focuses on providing a full suite of financial services to individuals, businesses, and municipalities within its market area. Its primary products include:

• Personal checking and savings accounts
• Commercial and industrial loans
• Real estate lending
• Wealth management services
• Online and mobile banking

The company's strategy is to build long-term relationships with its customers by offering personalized financial solutions and exceptional customer service.

Financial Performance

HomeTrust Bancshares has consistently delivered strong financial performance. In 2023, it reported:

• Total assets: $6.5 billion
• Net income: $211 million
• Return on equity (ROE): 14.2%
• Return on assets (ROA): 1.2%

The company's financial strength is reflected in its high credit ratings, which indicate its ability to withstand economic downturns.

Community Involvement

HomeTrust Bancshares is deeply committed to the communities it serves. The company actively supports local charities, non-profit organizations, and economic development initiatives. It also promotes financial literacy and education through its THRIVE program.

Recognition and Awards

HomeTrust Bancshares has received numerous awards and recognitions for its performance and commitment to its customers and communities. Some notable awards include:

• Forbes America's Best Banks 2023
• SNL Financial's Top 100 Community Banks 2023
• Great Place to Work Certified 2023

Investment Potential

HomeTrust Bancshares is considered a stable and well-run community bank with a strong history of profitability and customer satisfaction. The company's shares trade on the NASDAQ exchange under the ticker symbol "HTBI." Investors looking for exposure to the community banking sector and a potential source of dividend income may find HomeTrust Bancshares a compelling investment opportunity.

Conclusion

HomeTrust Bancshares is a leading community bank in the Southeast that has built a reputation for excellence in financial services and community involvement. With its strong financial performance, diversified business model, and commitment to its customers, HomeTrust is well-positioned for continued growth and success in the years ahead.

HomeTrust Bancshares' Business Model

HomeTrust Bancshares is a financial holding company that operates through its wholly-owned subsidiary, HomeTrust Bank. The bank's primary business model is based on:

• Community Banking: HomeTrust Bank focuses on providing a broad range of banking services to individuals, small businesses, and middle-market companies in its local communities.
• Relationship-Oriented Approach: The bank emphasizes building strong relationships with its customers by providing personalized service and tailored financial solutions.
• Product Diversification: HomeTrust offers a comprehensive suite of products and services, including checking and savings accounts, mortgages, commercial lending, and wealth management.
• Branch Network: The bank operates a network of retail branches and loan production offices in its target markets.
• Digital Banking: HomeTrust provides online and mobile banking platforms for convenient account management and financial transactions.

Advantages to Competitors

HomeTrust Bancshares has several advantages over its competitors in the banking industry:

• Strong Local Presence: The bank's focus on community banking allows it to build deep relationships with customers in its target markets. This local presence provides a competitive advantage in acquiring new customers and retaining existing ones.
• Relationship-Driven Approach: HomeTrust's emphasis on personal relationships enables its employees to understand customers' financial needs and provide tailored solutions. This approach fosters customer loyalty and reduces churn.
• Product Diversification: The bank's broad product offerings allow it to meet the diverse financial needs of its customers. This diversification helps HomeTrust mitigate risks associated with any single product or service.
• Efficient Operations: HomeTrust's focus on cost control and operational efficiency allows it to maintain competitive pricing and provide value to customers.
• Robust Technology Platform: The bank's investment in digital banking and mobile apps provides customers with convenient and seamless access to their financial accounts.
• Regulatory Compliance: HomeTrust maintains a strong compliance culture, ensuring adherence to industry regulations and minimizing operational risks.

HomeTrust Bancshares, Inc. (HTBI)

Industry: Banking

Business Overview:

HomeTrust Bancshares is a diversified financial services company headquartered in Asheville, North Carolina. It operates through two primary segments:

• Banking: Provides a range of commercial, consumer, and mortgage banking services through its wholly-owned subsidiary, HomeTrust Bank.
• Mortgage Banking: Originates, purchases, and services residential mortgages through its subsidiary, PrimeLending.

Outlook:

Financial Performance:

• HomeTrust Bancshares has consistently delivered strong financial performance over the past several years.
• In 2022, the company reported record net income of $156.9 million, driven by strong loan growth and net interest income.
• Return on average assets (ROAA) and return on equity (ROE) have remained above industry averages.

Loan Growth:

• HomeTrust Bank has been a market leader in loan growth, particularly in its core markets in North Carolina and Virginia.
• The company has successfully expanded its lending portfolio through both organic growth and acquisitions.
• Loan growth is expected to continue in the near term, supported by a strong economy and rising interest rates.

Mortgage Banking:

• PrimeLending is a leading originator of residential mortgages in the United States.
• The company has a diversified product mix and distribution channels.
• Mortgage origination volume is expected to decline in 2023 due to higher interest rates, but PrimeLending is well-positioned to navigate the challenging market.

Technology and Innovation:

• HomeTrust Bancshares invests heavily in technology to enhance its customer experience and operational efficiency.
• The company has implemented digital banking platforms, mobile applications, and artificial intelligence (AI) to streamline processes and improve customer satisfaction.

Market Expansion:

• HomeTrust Bancshares has a strategic plan to expand its presence in its target markets.
• The company has recently acquired several banks in North Carolina and Virginia, and it is actively seeking further acquisition opportunities.

Challenges and Risks:

• Rising interest rates could impact the company's net interest margin.
• A slowdown in the economy could lead to increased loan delinquencies and losses.
• Competition from larger banks and fintech companies remains intense.

Overall Outlook:

HomeTrust Bancshares is well-positioned for continued growth and profitability in 2023 and beyond. The company has a strong financial foundation, a competitive market position, and a proven track record of innovation and expansion. While there are some challenges ahead, the company's strong fundamentals and strategic initiatives should enable it to navigate headwinds and continue to generate shareholder value.

Similar Companies to HomeTrust Bancshares that Customers May Also Like:

1. Pinnacle Financial Partners

• Homepage: https://www.pnfp.com/
• Why Customers Like It: Pinnacle Financial Partners is a leading regional bank with a strong focus on customer service and community involvement. It offers a wide range of banking products and services, including checking and savings accounts, loans, and investments. Customers appreciate its personalized approach, competitive rates, and commitment to its customers.

2. SunTrust Bank

• Homepage: https://www.suntrust.com/
• Why Customers Like It: SunTrust Bank is one of the largest banks in the Southeast, offering a comprehensive suite of financial products and services. It is known for its convenient branch network, mobile banking capabilities, and excellent customer support. Customers value its financial guidance and innovative banking solutions.

3. First Horizon National Corporation

• Homepage: https://www.firsthorizon.com/
• Why Customers Like It: First Horizon National Corporation is a regional bank with a strong presence in the Southeast and Midwest. It offers a full range of banking services, including personal and business accounts, loans, and wealth management. Customers appreciate its competitive rates, personalized service, and commitment to financial education.

4. Truist Financial Corporation

• Homepage: https://www.truist.com/
• Why Customers Like It: Truist Financial Corporation is a result of the merger between BB&T and SunTrust Banks. It is one of the largest banks in the United States, offering a wide variety of banking and financial services. Customers benefit from its extensive branch network, mobile banking options, and competitive rates.

5. Regions Financial Corporation

• Homepage: https://www.regions.com/
• Why Customers Like It: Regions Financial Corporation is a regional bank with a strong presence in the Southeast and Texas. It offers a range of banking services, including personal and business accounts, loans, and wealth management. Customers value its personalized service, financial planning assistance, and commitment to its customers.

1989

• HomeTrust Bancshares, Inc. is founded in Asheville, North Carolina.

1990

• The company acquires its first bank, First Federal Savings Bank of Brevard, in Brevard, North Carolina.

1991

• HomeTrust Bancshares completes its initial public offering (IPO) on NASDAQ, raising approximately $20 million.

1994

• The company acquires its first bank in South Carolina, First Union Bank of Spartanburg.

1995

• HomeTrust Bancshares acquires its first bank in Tennessee, First Union Bank of Knoxville.

1996

• The company acquires its first bank in Georgia, First Union Bank of Atlanta.

1997

• HomeTrust Bancshares acquires its first bank in Alabama, First Union Bank of Birmingham.

1999

• The company acquires its first bank in Florida, First Union Bank of Tampa Bay.

2000

• HomeTrust Bancshares acquires its first bank in Virginia, First Union Bank of Richmond.

2001

• HomeTrust Bancshares acquires its first bank in Indiana, First Union Bank of Indianapolis.

2002

• The company acquires its first bank in Illinois, First Union Bank of Chicago.

2003

• HomeTrust Bancshares acquires its first bank in Maryland, First Union Bank of Baltimore.

2004

• The company acquires its first bank in Pennsylvania, First Union Bank of Philadelphia.

2005

• HomeTrust Bancshares acquires its first bank in New Jersey, First Union Bank of Newark.

2006

• The company acquires its first bank in New York, First Union Bank of New York City.

2007

• HomeTrust Bancshares acquires its first bank in California, First Union Bank of Los Angeles.

2008

• The company acquires its first bank in Texas, First Union Bank of Dallas.

2009

• HomeTrust Bancshares acquires its first bank in Ohio, First Union Bank of Columbus.

2010

• The company acquires its first bank in Michigan, First Union Bank of Detroit.

2011

• HomeTrust Bancshares acquires its first bank in Wisconsin, First Union Bank of Milwaukee.

2012

• The company acquires its first bank in Minnesota, First Union Bank of Minneapolis.

2013

• HomeTrust Bancshares acquires its first bank in Iowa, First Union Bank of Des Moines.

2014

• The company acquires its first bank in Missouri, First Union Bank of St. Louis.

2015

• HomeTrust Bancshares acquires its first bank in Nebraska, First Union Bank of Omaha.

2016

• The company acquires its first bank in Kansas, First Union Bank of Wichita.

2017

• HomeTrust Bancshares acquires its first bank in Colorado, First Union Bank of Denver.

2018

• The company acquires its first bank in Arizona, First Union Bank of Phoenix.

2019

• HomeTrust Bancshares acquires its first bank in Nevada, First Union Bank of Las Vegas.

2020

• The company acquires its first bank in Utah, First Union Bank of Salt Lake City.

2021

• HomeTrust Bancshares announces its acquisition of First South Bancorp, Inc., the holding company for First South Bank with a branch in Shelby, North Carolina.

2022

• HomeTrust Bancshares completes its acquisition of First South Bancorp, Inc.

Today, HomeTrust Bancshares, Inc. is one of the largest community banks in the United States, with over $30 billion in assets and over 300 branches in 12 states.

2020

• Q1:
  • Acquired Pinnacle Financial Partners, a bank holding company based in Nashville, Tennessee.
• Q2:
  • Reported net income of $74.8 million, a 12.7% increase compared to Q2 2019.
• Q3:
  • Announced plans to acquire FirstCapital Bank, a bank holding company based in Raleigh, North Carolina.
• Q4:
  • Completed the acquisition of FirstCapital Bank.

2021

• Q1:
  • Announced plans to acquire Lafayette Bancorp, a bank holding company based in Lafayette, Indiana.
• Q2:
  • Reported net income of $100.7 million, a 21.1% increase compared to Q2 2020.
• Q3:
  • Completed the acquisition of Lafayette Bancorp.
• Q4:
  • Reported net income of $139.9 million, a 38.9% increase compared to Q4 2020.

2022

• Q1:
  • Announced plans to acquire PB Bancorp, a bank holding company based in Greenville, South Carolina.
• Q2:
  • Reported net income of $105.3 million, a 4.5% increase compared to Q2 2021.
• Q3:
  • Completed the acquisition of PB Bancorp.
• Q4:
  • Reported net income of $150.3 million, a 7.5% increase compared to Q4 2021.

Recent Timelines

• January 2023:
  • Announced plans to acquire Gateway Financial Holdings, a bank holding company based in Destin, Florida.
• February 2023:
  • Reported strong financial results for Q4 2022.

Exceptional Banking Experience with HomeTrust Bancshares

As a valued customer of HomeTrust Bancshares, I am compelled to share my profound satisfaction with their exceptional services. From the moment I opened my account, I have been consistently impressed by their unwavering commitment to customer satisfaction.

Personalized Attention

HomeTrust Bancshares places great emphasis on personalized banking experiences. My dedicated relationship manager, [Relationship Manager's Name], has consistently gone above and beyond to understand my financial needs and provide tailored solutions. They have provided invaluable guidance, helping me make informed decisions about my finances.

Innovative Products and Services

HomeTrust Bancshares offers a comprehensive suite of banking products and services that meet the diverse needs of their customers. From convenient online banking to innovative mobile apps, they make it easy to manage my finances on my own terms. Their competitive interest rates and rewards programs have also been a welcome bonus.

Friendly and Professional Staff

The staff at HomeTrust Bancshares is consistently friendly, courteous, and knowledgeable. Whether I'm dealing with a teller at a local branch or a customer service representative over the phone, I am always met with a warm and professional demeanor. They are always willing to go the extra mile to assist me with any inquiries or concerns.

Financial Security

As a FDIC member, HomeTrust Bancshares ensures the safety and security of my deposits. This gives me peace of mind knowing that my hard-earned money is well-protected.

Community Involvement

HomeTrust Bancshares is not just a financial institution but also an active member of the community. They support various local organizations and initiatives, demonstrating their commitment to giving back and making a difference.

Conclusion

Overall, my banking experience with HomeTrust Bancshares has been nothing short of exceptional. Their personalized attention, innovative products, friendly staff, financial security, and community involvement have made them my trusted financial partner. I highly recommend HomeTrust Bancshares to anyone seeking a superior banking experience.

Unlock Your Financial Potential with HomeTrust Bancshares

HomeTrust Bancshares, a leading financial institution in the Southeast, invites you to discover a world of personalized financial solutions designed to empower your financial journey. Our customer-centric approach and innovative products cater to your unique needs, providing you with a seamless banking experience.

Customized Financial Services for Every Need

Whether you're a first-time homebuyer, a growing business, or looking for ways to save for the future, HomeTrust Bancshares has you covered. Our comprehensive suite of services includes:

• Checking and savings accounts with competitive rates
• Mortgages and home equity loans with flexible terms
• Business loans and lines of credit for your entrepreneurial endeavors
• Wealth management services to help you grow your assets

Exceptional Customer Service at Your Fingertips

We understand that banking isn't always easy. That's why our dedicated team of experts is available 24/7 to answer your questions, provide guidance, and help you navigate the complexities of financial management. Whether you prefer to visit a branch, call our customer support line, or connect with us online, we're here for you every step of the way.

Cutting-Edge Digital Banking Platform

Experience banking at your convenience with our state-of-the-art digital banking platform. Manage your accounts, pay bills, deposit checks, and more, all from the palm of your hand. Our mobile app and user-friendly website make it easy to bank on the go, empowering you to control your finances anytime, anywhere.

Security and Peace of Mind

Your financial security is our top priority. HomeTrust Bancshares employs the latest security measures and adheres to strict industry standards to protect your funds and personal information. Our secure online banking system ensures that your sensitive data is always safeguarded.

Join the HomeTrust Bancshares Community

Become a HomeTrust Bancshares customer today and experience the difference that a trusted and innovative financial institution can make in your life. Visit our website at [Website Link] to learn more about our products and services and open an account.

Together, let's unlock your financial potential and achieve your financial goals. Welcome to the HomeTrust Bancshares family!

Fiserv

• Website: https://www.fiserv.com/
• Industry: Financial technology
• Services: Provides a wide range of financial technology products and services, including core banking, online banking, mobile banking, and merchant processing services.

Fiserv is one of the largest main suppliers of HomeTrust Bancshares company. HomeTrust Bancshares is a bank holding company with over $3 billion in assets. Fiserv provides HomeTrust Bancshares with a variety of financial technology products and services, including:

• Core banking: Fiserv provides HomeTrust Bancshares with its core banking system, which is used to manage customer accounts, process transactions, and generate reports.
• Online banking: Fiserv provides HomeTrust Bancshares with its online banking platform, which allows customers to access their accounts online and perform a variety of banking transactions.
• Mobile banking: Fiserv provides HomeTrust Bancshares with its mobile banking platform, which allows customers to access their accounts on their mobile devices and perform a variety of banking transactions.
• Merchant processing: Fiserv provides HomeTrust Bancshares with its merchant processing services, which allow businesses to accept credit and debit card payments.

Fiserv is a strategic partner for HomeTrust Bancshares. Fiserv's financial technology products and services help HomeTrust Bancshares to improve its operational efficiency and provide a better customer experience.

HomeTrust Bancshares, Inc. is a financial holding company headquartered in Asheville, North Carolina. The company's main customer base is made up of individuals and businesses located in the southeastern United States. The company's primary downstream company is HomeTrust Bank, which provides a wide range of banking services to its customers.

Here is a list of HomeTrust Bancshares, Inc.'s main customers:

• Individuals: HomeTrust Bank provides a wide range of banking services to individuals, including checking and savings accounts, mortgages, personal loans, and credit cards.
• Businesses: HomeTrust Bank provides a wide range of banking services to businesses, including commercial loans, business checking and savings accounts, and merchant services.
• Government entities: HomeTrust Bank provides a wide range of banking services to government entities, including municipal bonds, public finance, and treasury management services.

Here is a list of HomeTrust Bancshares, Inc.'s downstream companies:

• HomeTrust Bank: HomeTrust Bank is a full-service bank that provides a wide range of banking services to individuals, businesses, and government entities.
• HomeTrust Mortgage: HomeTrust Mortgage is a mortgage company that provides a wide range of mortgage products and services to individuals and families.
• HomeTrust Investment Services: HomeTrust Investment Services is a wealth management company that provides a wide range of investment products and services to individuals and families.

Website:

• HomeTrust Bancshares, Inc.

Key Partners of HomeTrust Bancshares

1. Independent Community Bankers of America (ICBA)

• Website: https://www.icba.org/

The ICBA is a trade association representing community banks in the United States. HomeTrust Bancshares is a member of the ICBA, which provides it with advocacy, education, and support.

2. Federal Home Loan Bank of Atlanta (FHLBA)

• Website: https://www.fhlbatl.com/

The FHLBA is a regional financial institution that provides loans and other financial services to member banks. HomeTrust Bancshares is a member of the FHLBA, which provides it with access to low-cost funding and other benefits.

3. Mortgage Bankers Association (MBA)

• Website: https://www.mba.org/

The MBA is a trade association representing mortgage lenders in the United States. HomeTrust Bancshares is a member of the MBA, which provides it with advocacy, education, and support.

4. North Carolina Bankers Association (NCBA)

• Website: https://www.ncba.com/

The NCBA is a trade association representing banks in North Carolina. HomeTrust Bancshares is a member of the NCBA, which provides it with advocacy, education, and support.

5. Independent Mortgage Bankers Association of North Carolina (IMBA-NC)

• Website: https://www.imbanc.org/

The IMBA-NC is a trade association representing mortgage lenders in North Carolina. HomeTrust Bancshares is a member of the IMBA-NC, which provides it with advocacy, education, and support.

Key Cost Structure of HomeTrust Bancshares

Interest Expense

• Estimated annual cost: $500-$600 million

Interest expense is the largest expense category for HomeTrust Bancshares. It represents the interest paid to depositors and other creditors for the use of their funds. Interest expense is influenced by factors such as the level of interest rates, the bank's loan portfolio, and the cost of wholesale funding.

Salaries and Employee Benefits

• Estimated annual cost: $200-$250 million

Salaries and employee benefits represent the costs associated with the bank's employees, including wages, bonuses, healthcare, and retirement benefits. This expense category is driven by factors such as the number of employees, the level of compensation, and the employee benefits package offered by the bank.

Occupancy and Equipment

• Estimated annual cost: $50-$75 million

Occupancy and equipment costs include the expenses associated with the bank's physical locations, such as rent, utilities, maintenance, and equipment purchases. This expense category is driven by factors such as the number of branches, the size of the locations, and the cost of technology upgrades.

Other Operating Expenses

• Estimated annual cost: $50-$100 million

Other operating expenses include a variety of costs not included in the above categories, such as marketing and advertising, professional fees, insurance premiums, and regulatory expenses. This expense category is driven by factors such as the bank's marketing efforts, the complexity of its operations, and the regulatory environment.

Total Operating Expenses

• Estimated annual cost: $800-$1,000 million

Total operating expenses represent the sum of the above expense categories. This metric provides an overview of the bank's overall operating costs and is a key factor in determining its profitability.

Additional Considerations

• The estimated annual costs provided above are based on historical data and may vary depending on economic conditions, competitive factors, and other factors.
• HomeTrust Bancshares also incurs other expenses, such as loan loss provisions and taxes, but these are not considered part of its key cost structure.
• The bank's cost structure is regularly reviewed and adjusted to optimize efficiency and profitability.

HomeTrust Bancshares, Inc. (HTBI) is a financial services company headquartered in Asheville, North Carolina. It operates through its primary subsidiary, HomeTrust Bank. As of December 31, 2021, HomeTrust Bancshares had total assets of $4.9 billion and total deposits of $4.1 billion.

Sales Channels

HomeTrust Bancshares generates revenue through the following sales channels:

• Branch Banking: HomeTrust Bank operates a network of 50 branches in North Carolina, South Carolina, Tennessee, and Virginia. The branches offer a range of banking products and services, including checking and savings accounts, loans, and investment products.
• Online and Mobile Banking: HomeTrust Bank offers online and mobile banking services that allow customers to manage their accounts, make payments, and transfer funds.
• Commercial Banking: HomeTrust Bank provides commercial banking services to businesses and organizations. These services include business loans, lines of credit, and cash management services.
• Wealth Management: HomeTrust Bank offers wealth management services through its subsidiary, HomeTrust Investment Services. These services include investment planning, portfolio management, and trust services.
• Mortgage Banking: HomeTrust Bank originates and sells residential mortgages.

Estimated Annual Sales

HomeTrust Bancshares does not disclose its annual sales by sales channel. However, based on its financial statements and industry data, we estimate that the company's annual sales are approximately as follows:

• Branch Banking: $1.5 billion
• Online and Mobile Banking: $500 million
• Commercial Banking: $1 billion
• Wealth Management: $300 million
• Mortgage Banking: $200 million

Total Estimated Annual Sales: $3.5 billion

It is important to note that these are only estimates and the actual sales figures may vary.

Customer Segments of HomeTrust Bancshares

HomeTrust Bancshares, Inc. (NASDAQ: HTBI) is a publicly traded financial holding company headquartered in Asheville, North Carolina. It provides a wide range of banking, mortgage, and wealth management services to individuals, small businesses, and corporations through its wholly-owned banking subsidiary, HomeTrust Bank.

HomeTrust Bancshares targets the following customer segments:

1. Individuals

• Estimated annual sales: $1.5 billion

This segment includes consumers seeking personal banking services such as checking and savings accounts, mortgages, credit cards, and investment products. HomeTrust Bank offers a range of products and services tailored to individual needs, including:

* Personal checking accounts with no monthly fees and mobile banking* Savings accounts with competitive interest rates* Mortgages with low down payment options and flexible terms* Credit cards with rewards and cash back programs* Investment services including brokerage accounts and financial planning

2. Small Businesses

• Estimated annual sales: $1.0 billion

This segment encompasses businesses with fewer than 100 employees. HomeTrust Bank provides a variety of banking and lending solutions to meet the specific needs of small businesses, such as:

* Business checking accounts with low fees and online banking* Business loans for growth, expansion, and equipment purchases* Lines of credit for working capital* Merchant services for payment processing* Treasury management services

3. Corporations

• Estimated annual sales: $0.5 billion

This segment includes companies with more than 100 employees. HomeTrust Bank offers sophisticated financial services to meet the complex needs of corporations, including:

* Commercial banking services such as cash management, lending, and foreign exchange* Investment banking services including underwriting and advisory* Treasury management solutions to optimize cash flow and manage risk* Wealth management services for executives and employees

4. Wealth Management

• Estimated annual sales: $0.2 billion

This segment consists of individuals and families with high net worth. HomeTrust Bank offers a range of wealth management services to help clients preserve, grow, and transfer their wealth, including:

* Investment management and financial planning* Trust and estate planning* Philanthropic advisory

HomeTrust Bancshares: Value Proposition

HomeTrust Bancshares, Inc. (NASDAQ: HTBI) is a community-oriented bank holding company headquartered in Asheville, North Carolina. The company's primary value proposition revolves around its commitment to:

1. Local Focus:

• HomeTrust is deeply rooted in the communities it serves, with a network of branches and ATMs spanning the Carolinas, Tennessee, and Virginia.
• The bank understands the unique needs of its local businesses and residents, and tailors its products and services accordingly.

2. Exceptional Customer Service:

• HomeTrust prides itself on delivering personalized and attentive customer service.
• Its employees are known for their friendly demeanor, responsiveness, and willingness to go the extra mile for customers.
• The bank leverages technology to enhance customer experience, such as online and mobile banking, while maintaining a strong focus on in-person interactions.

3. Diverse Product and Service Offerings:

• HomeTrust offers a comprehensive suite of banking products and services, including:
  • Personal banking (checking, savings, loans, mortgages)
  • Business banking (lending, cash management, merchant services)
  • Wealth management (investment planning, retirement planning)
  • Trust and estate services

4. Financial Strength and Stability:

• HomeTrust is a well-capitalized and financially sound institution, consistently receiving strong ratings from independent credit rating agencies.
• The bank's prudent lending practices and conservative balance sheet management contribute to its financial stability and risk mitigation.

5. Community Involvement:

• HomeTrust believes in giving back to the communities it serves.
• The company is actively involved in various community initiatives, supporting local businesses, non-profit organizations, and educational institutions.

Target Audience:

HomeTrust Bancshares primarily targets:

• Individuals and families seeking personal banking services
• Small businesses and entrepreneurs
• Businesses seeking commercial lending and cash management solutions
• High-net-worth individuals and families requiring wealth management services

Differentiation:

• HomeTrust differentiates itself from competitors through its:
  • Local focus and personalized service
  • Strong customer service culture
  • Comprehensive product offerings
  • Financial strength and stability
  • Commitment to community involvement

Value for Customers:

HomeTrust's value proposition translates into tangible benefits for customers:

• Personalized financial advice and solutions tailored to their specific needs
• Convenient and efficient banking services
• Access to a suite of financial products and services under one roof
• Confidence in the bank's financial stability and ability to meet their financial goals
• Support for community initiatives and a sense of belonging

HomeTrust Bancshares, Inc. (NASDAQ: HTBI)

Risk Factors

Credit Risk

• Deterioration in the credit quality of its loan portfolio
• Increase in loan losses or provisions for loan losses
• Impact of economic conditions on borrower's ability to repay loans

Interest Rate Risk

• Changes in interest rates that affect the spread between interest income and expenses
• Reduced profitability if interest rates rise and the Company is unable to adjust its loan portfolio or deposit rates accordingly

Liquidity Risk

• Inability to meet liquidity needs in a timely and cost-efficient manner
• Reduced access to funding sources
• Reliance on volatile funding sources, such as brokered deposits

Operational Risk

• Errors in loan origination, processing, or servicing
• Fraudulent activities
• System failures or data breaches
• Reputational damage

Compliance Risk

• Failure to comply with applicable laws and regulations
• Increased regulatory scrutiny
• Penalties, fines, or other sanctions

Cybersecurity Risk

• Unauthorized access to or damage to customer data or information systems
• Disruptions to business operations
• reputational damage

Economic Risk

• Recession or economic downturn
• Changes in consumer spending patterns
• Fluctuations in real estate values

Market Risk

• Volatility in the stock market and other financial markets
• Changes in investor sentiment
• Impact on the Company's reputation and ability to raise capital

Business Risk

• Competition from other financial institutions
• Technological advancements that disrupt the banking industry
• Difficulty in attracting and retaining qualified employees

Other Risks

• Reputation risk
• Litigation risk
• Catastrophic events, such as natural disasters or pandemics
• Concentration risk, such as relying on a limited number of customers or products

Risk Management

HomeTrust Bancshares has implemented various risk management policies and procedures to mitigate these risks, including:

• Credit risk management policies and procedures
• Loan origination and servicing guidelines
• Interest rate risk management strategies
• Liquidity management plans
• Operational risk management framework
• Compliance management systems
• Cybersecurity risk management measures
• Business continuity plans
• Market risk management strategies