HTB

HomeTrust is a textbook compounding community bank that the market is pricing as if growth has stalled. Net income has marched from $15.7M in FY2021 to $64.4M in FY2025 — a quadrupling in four years — with FY2025 alone delivering +17.4% net income growth and +16.3% diluted EPS growth to $3.72. At $49.27, the stock trades at just 13.2x trailing earnings, which is undemanding for a bank growing earnings in the mid-teens and shrinking its share count. (Note: the 'revenue' line and resulting P/S and net-margin figures are not meaningful here — banks report net interest income, not GAAP contract revenue, so the $10.4M FY2021 figure and the 620% 'net margin' are XBRL tag artifacts and should be ignored.)

The balance sheet is the anchor of the thesis. Equity grew +8.9% to $601M while total assets contracted -1.1% to $4.55B, meaning management is rebuilding the capital ratio rather than chasing asset growth — exactly what you want from a community bank in a still-uncertain rate cycle. Cash rose +16.3% to $325M, retained earnings climbed +14.7% to $437M, and ROE of 10.7% is respectable for a bank tightening its footprint. The 10-K confirms the discipline: management sold two Knoxville branches in May 2025 (booking a $1.4M gain), exited indirect auto and right-sized mortgage banking in 2024, and the Hurricane Helene deferral overhang has collapsed from $136.0M to just $318,000 with only $165,000 in related charge-offs — a near-best-case outcome for what was a real tail risk a year ago.