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HomeTrust Bancshares, Inc. Announces Financial Results for the First Quarter of the Year Ending December 31, 2025 and Declaration of a Quarterly Dividend

1. HTB announces Q1 2025 net income of $14.5 million, up 2.3%. 2. Quarterly cash dividend maintained at $0.12 per share. 3. ROA and ROE increased to 1.33% and 10.52%, respectively. 4. Transition to NYSE listing expected to improve visibility. 5. Noninterest expense decreased significantly, enhancing financial efficiency.

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Why Bullish?

HTB's consistent financial growth and dividend policy reflect strong management. Historical examples include growth periods where effective cost management led to price appreciation.

How important is it?

Strong quarterly performance, combined with a steady dividend, indicates financial health, likely boosting stock interest.

Why Short Term?

Immediate impacts from Q1 results and dividend continuation are likely to influence investor sentiment quickly.

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ASHEVILLE, N.C., April 24, 2025 (GLOBE NEWSWIRE) -- HomeTrust Bancshares, Inc. (NYSE: HTB) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the first quarter of the year ending December 31, 2025 and approval of its quarterly cash dividend. For the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024: net income was $14.5 million compared to $14.2 million;diluted earnings per share ("EPS") was $0.84 compared to $0.83;annualized return on assets ("ROA") was 1.33% compared to 1.27%;annualized return on equity ("ROE") was 10.52% compared to 10.32%;net interest margin was 4.18% compared to 4.09%;provision for credit losses was $1.5 million compared to a benefit of $855,000;quarterly cash dividends continued at $0.12 per share totaling $2.1 million for both periods; and14,800 shares of Company common stock were repurchased during the quarter at an average price of $33.64 compared to none in the prior quarter. The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.12 per common share payable on May 29, 2025 to shareholders of record as of the close of business on May 15, 2025. “We are pleased to report another quarter of strong financial results,” said Hunter Westbrook, President and Chief Executive Officer. “Our top quartile net interest margin expanded to 4.18% as the reduction in our funding costs outpaced a slight decline in our asset yields. This improvement reflects our focus on financial performance rather than loan growth for the sake of growth. “During the first quarter, we transitioned our common stock listing to the New York Stock Exchange under the ticker ‘HTB’, which we believe will provide greater exposure for our Company and long-term value for our stockholders. We also announced the sale of our two branches and exit from Knoxville, Tennessee, which will tighten our geographic footprint, improve our branch efficiencies, and allow us to better allocate capital to support long-term growth in other core markets. “In response to the recent turbulence in the economic environment, we currently do not anticipate a significant impact upon our business, but we are committed to working with our customers to provide the banking support that may be needed. As in past periods of uncertainty, we are confident that the resilience of our balance sheet and customers, coupled with our conservative approach to risk management, will position HomeTrust to succeed.” WEBSITE: WWW.HTB.COM Comparison of Results of Operations for the Three Months Ended March 31, 2025 and December 31, 2024Net Income.  Net income totaled $14.5 million, or $0.84 per diluted share, for the three months ended March 31, 2025 compared to $14.2 million, or $0.83 per diluted share, for the three months ended December 31, 2024, an increase of $331,000, or 2.3%. Results for the three months ended March 31, 2025 benefited from a $3.0 million decrease in noninterest expense, partially offset by a $2.4 million increase in the provision for credit losses. Details of the changes in the various components of net income are further discussed below. Net Interest Income.  The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.  Three Months Ended March 31, 2025 December 31, 2024(Dollars in thousands)AverageBalanceOutstanding InterestEarned /Paid Yield /Rate AverageBalanceOutstanding InterestEarned /Paid Yield /RateAssets           Interest-earning assets           Loans receivable(1)$3,802,003  $58,613 6.25%  $3,890,775  $62,224 6.36% Debt securities available for sale 152,659   1,787 4.75   147,023   1,621 4.39 Other interest-earning assets(2) 206,242   3,235 6.36   160,064   2,353 5.85 Total interest-earning assets 4,160,904   63,635 6.20   4,197,862   66,198 6.27 Other assets 266,141       263,750     Total assets$4,427,045      $4,461,612     Liabilities and equity           Interest-bearing liabilities           Interest-bearing checking accounts$573,316  $1,324 0.94%  $559,033  $1,271 0.90% Money market accounts 1,345,575   9,177 2.77   1,343,609   10,038 2.97 Savings accounts 183,354   38 0.08   180,546   40 0.09 Certificate accounts 951,715   9,824 4.19   1,005,914   11,225 4.44 Total interest-bearing deposits 3,053,960   20,363 2.70   3,089,102   22,574 2.91 Junior subordinated debt 10,129   205 8.21   10,104   223 8.87 Borrowings 12,301   160 5.28   14,689   196 5.31 Total interest-bearing liabilities 3,076,390   20,728 2.73   3,113,895   22,993 2.94 Noninterest-bearing deposits 719,522       731,745     Other liabilities 70,821       68,261     Total liabilities 3,866,733       3,913,901     Stockholders' equity 560,312       547,711     Total liabilities and stockholders' equity$4,427,045      $4,461,612     Net earning assets$1,084,514      $1,083,967     Average interest-earning assets to average interest-bearing liabilities 135.25%       134.81%     Non-tax-equivalent           Net interest income  $42,907     $43,205  Interest rate spread    3.47%      3.33% Net interest margin(3)    4.18%      4.09% Tax-equivalent(4)           Net interest income  $43,325     $43,594  Interest rate spread    3.51%      3.37% Net interest margin(3)    4.22%      4.13%  (1)  Average loans receivable balances include loans held for sale and nonaccruing loans.(2)  Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks.(3)  Net interest income divided by average interest-earning assets.(4)  Tax-equivalent results include adjustments to interest income of $418 and $389 for the three months ended March 31, 2025 and December 31, 2024, respectively, calculated based on a combined federal and state tax rate of 24%. Total interest and dividend income for the three months ended March 31, 2025 decreased $2.6 million, or 3.9%, compared to the three months ended December 31, 2024, which was driven by a $3.6 million, or 5.8%, decrease in loan interest income primarily due to a decline in the average balance, a decrease in accretion income on acquired loans of $881,000, or 73.3%, and fewer days in the current quarter. In addition, income on SBIC investments increased $452,000, or 54.0%, due to investment appreciation. Total interest expense for the three months ended March 31, 2025 decreased $2.3 million, or 9.9%, compared to the three months ended December 31, 2024. The decrease was the result of a decline in the average balance of certificate accounts, specifically brokered deposits, a decline in the average cost of funds across funding categories, and fewer days in the current quarter. The following table shows the effects that changes in average balances (volume), including the difference in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:  Increase / (Decrease)Due to TotalIncrease /(Decrease)(Dollars in thousands)Volume Rate Interest-earning assets     Loans receivable$(2,559)  $(1,052)  $(3,611) Debt securities available for sale 27   139   166 Other interest-earning assets 616   266   882 Total interest-earning assets (1,916)   (647)   (2,563) Interest-bearing liabilities     Interest-bearing checking accounts 7   46   53 Money market accounts (164)   (697)   (861) Savings accounts —   (2)   (2) Certificate accounts (796)   (605)   (1,401) Junior subordinated debt (3)   (15)   (18) Borrowings (35)   (1)   (36) Total interest-bearing liabilities (991)   (1,274)   (2,265) Decrease in net interest income    $(298)  Provision for Credit Losses.  The provision for credit losses is the amount of expense that, based on our judgment, is required to maintain the allowance for credit losses ("ACL") at an appropriate level under the current expected credit losses model. The following table presents a breakdown of the components of the provision (benefit) for credit losses:  Three Months Ended  (Dollars in thousands)March 31, 2025 December 31, 2024 $ Change % ChangeProvision (benefit) for credit losses       Loans$800 $(975)  $1,775 182% Off-balance-sheet credit exposure 740  120   620 517 Total provision (benefit) for credit losses$1,540 $(855)  $2,395 280%  For the quarter ended March 31, 2025, the "loans" portion of the provision for credit losses was the result of the following, offset by net charge-offs of $1.3 million during the quarter: $0.6 million benefit driven by changes in the loan mix.The slight improvement in the projected economic forecast, specifically the national unemployment rate, was offset by changes in qualitative adjustments. Of note, we retained the $2.2 million qualitative allocation for the potential impact of Hurricane Helene upon our loan portfolio established in the quarter ended September 30, 2024.$0.1 million increase in specific reserves on individually evaluated loans. For the quarter ended December 31, 2024, the "loans" portion of the provision (benefit) for credit losses was the result of the following, offset by net charge-offs of $1.9 million during the quarter: $1.3 million benefit driven by changes in the loan mix and a $50.6 million decrease in the loan portfolio.$0.7 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments. Of note, we retained the $2.2 million qualitative allocation for the potential impact of Hurricane Helene upon our loan portfolio established in the prior quarter.$0.9 million decrease in specific reserves on individually evaluated credits. For the quarter ended March 31, 2025, the amount recorded for off-balance-sheet credit exposure was the result of an increase in the balance of loan commitments and changes in the loan mix and projected economic forecast as outlined above. For the quarter ended December 31, 2024, the amount recorded for off-balance-sheet credit exposure was the result of a decrease in the balance of loan commitments and changes in the loan mix and projected economic forecast as outlined above. Noninterest Income.  Noninterest income for the three months ended March 31, 2025 decreased $216,000, or 2.6%, when compared to the quarter ended December 31, 2024. Changes in the components of noninterest income are discussed below:  Three Months Ended  (Dollars in thousands)March 31, 2025 December 31, 2024 $ Change % ChangeNoninterest income       Service charges and fees on deposit accounts$2,244 $2,326 $(82)  (4)% Loan income and fees 721  728  (7)  (1) Gain on sale of loans held for sale 1,908  1,068  840  79 Bank owned life insurance ("BOLI") income 842  842  —  — Operating lease income 1,379  2,259  (880)  (39) Other 933  1,020  (87)  (9) Total noninterest income$8,027 $8,243 $(216)  (3)%  Gain on sale of loans held for sale: The increase was primarily driven by HELOCs sold during the period. There were $89.4 million of HELOCs originated for sale which were sold during the current quarter with gains of $1.1 million compared to no sales in the prior quarter. There were $18.8 million of residential mortgage loans sold for a gain of $473,000 during the current quarter compared to $23.8 million sold with gains of $269,000 in the prior quarter. There were $4.6 million in sales of the guaranteed portion of SBA commercial loans with gains of $366,000 for the current quarter compared to $10.2 million sold and gains of $733,000 for the prior quarter. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a gain of $13,000 for the current quarter compared to a gain of $66,000 for the prior quarter.Operating lease income: The decrease was primarily the result of a $306,000 increase in losses incurred on the sale of, and a $529,000 increase in the valuation allowance against, previously leased equipment. Noninterest Expense.  Noninterest expense for the three months ended March 31, 2025 decreased $3.0 million, or 9.0%, when compared to the three months ended December 31, 2024. Changes in the components of noninterest expense are discussed below:  Three Months Ended  (Dollars in thousands)March 31, 2025 December 31, 2024 $ Change % ChangeNoninterest expense       Salaries and employee benefits$17,699 $17,234 $465  3% Occupancy expense, net 2,511  2,476  35  1 Computer services 2,805  3,110  (305)  (10) Operating lease depreciation expense 1,868  2,068  (200)  (10) Telephone, postage and supplies 546  541  5  1 Marketing and advertising 452  234  218  93 Deposit insurance premiums 511  556  (45)  (8) Core deposit intangible amortization 515  567  (52)  (9) Contract renewal consulting fee —  2,965  (2,965)  (100) Other 4,054  4,258  (204)  (5) Total noninterest expense$30,961 $34,009 $(3,048)  (9)%  Computer services: As noted below, in the prior quarter we finalized the multiyear renewal of our largest core processing contract. The decrease in expense quarter-over-quarter is a reflection of the improved vendor pricing negotiated through this effort.Marketing and advertising: The increase in expense was the result of a reduction in advertising in the prior quarter due to the election and holiday season.Contract renewal consulting fee: In the prior quarter we paid a fee to a consultant to negotiate the multiyear renewal of our largest core processing contract, with no similar fee in the current quarter. Income Taxes.  The amount of income tax expense is influenced by the amount of pre-tax income, tax-exempt income, changes in the statutory rate and the effect of changes in valuation allowances maintained against deferred tax benefits. The effective tax rates for the three months ended March 31, 2025 and December 31, 2024 were 21.1% and 22.3%, respectively. Balance Sheet ReviewTotal assets decreased by $37.4 million to $4.6 billion and total liabilities decreased by $51.1 million to $4.0 billion, respectively, at March 31, 2025 as compared to December 31, 2024. These changes can be traced to the use of loan sale proceeds and a $61.5 million increase in customer deposits to pay down brokered deposits by $104.3 million and borrowings by $11.0 million. Stockholders' equity increased $13.7 million to $565.4 million at March 31, 2025 as compared to December 31, 2024. Activity within stockholders' equity included $14.5 million in net income and $1.0 million in stock-based compensation and stock option exercises, partially offset by $2.1 million in cash dividends declared and $498,000 in stock repurchases. In addition, accumulated other comprehensive income improved primarily due to a $1.1 million reduction of the unrealized loss on available for sale securities as a result of a decrease in market interest rates. As of March 31, 2025, the Bank was considered "well capitalized" in accordance with its regulatory capital guidelines and exceeded all regulatory capital requirements. Asset QualityThe ACL on loans was $44.7 million, or 1.23% of total loans, at March 31, 2025 compared to $45.3 million, or 1.24% of total loans, at December 31, 2024. The drivers of this change are discussed in the "Comparison of Results of Operations for the Three Months Ended March 31, 2025 and December 31, 2024 – Provision for Credit Losses" section above. Net loan charge-offs totaled $1.3 million for the three months ended March 31, 2025 compared to $1.9 million and $2.3 million for the three months ended December 31, 2024 and March 31, 2024, respectively. Annualized net charge-offs as a percentage of average loans were 0.14% for the three months ended March 31, 2025 as compared to 0.19% and 0.24% for the three months ended December 31, 2024 and March 31, 2024, respectively. Nonperforming assets, made up of nonaccrual loans and repossessed assets, decreased by $753,000, or 2.6%, to $28.0 million, or 0.61% of total assets, at March 31, 2025 compared to $28.8 million, or 0.63% of total assets, at December 31, 2024. Owner occupied commercial real estate ("CRE") made up the largest portion of nonperforming assets at $8.6 million and $8.5 million, respectively, at these same dates. One relationship made up $5.0 million of the totals at both dates but no loss is anticipated. In addition, equipment finance loans made up $5.1 million and $4.7 million, respectively, at these same dates, concentrated in the transportation sector. The ratio of nonperforming loans to total loans was 0.74% at March 31, 2025 compared to 0.76% at December 31, 2024. The ratio of classified assets to total assets decreased to 0.85% at March 31, 2025 from 1.06% at December 31, 2024 as classified assets decreased $10.0 million, or 20.5%, to $38.8 million at March 31, 2025 compared to $48.8 million at December 31, 2024. The largest portfolios of classified assets at March 31, 2025 included $12.9 million of owner-occupied CRE loans, $6.6 million of 1-4 family residential real estate loans, $5.4 million of equipment finance loans, $4.2 million of commercial and industrial loans, $4.2 million of HELOCs, and $3.8 million of non-owner occupied CRE loans. Lastly, in an effort to assist customers in their post-Hurricane Helene recovery and clean-up efforts, in the prior quarter we granted payment deferrals of up to six months to provide short-term relief to impacted customers. The outstanding balance of these deferrals declined from $136.0 million at December 31, 2024 to $109.9 million at March 31, 2025 and $68.4 million at April 21, 2025. The Company retained the prior quarter $2.2 million ACL allocation for the potential impact of the storm on this portion of our loan portfolio. To date, no charge-offs have been recognized which were directly related to Hurricane Helene. About HomeTrust Bancshares, Inc.HomeTrust Bancshares, Inc. is the holding company for the Bank. As of March 31, 2025, the Company had assets of $4.6 billion. The Bank, founded in 1926, is a North Carolina state chartered, community-focused financial institution committed to providing value added relationship banking with over 30 locations as well as online/mobile channels. Locations include: North Carolina (the Asheville metropolitan area, the "Piedmont" region, Charlotte and Raleigh/Cary), South Carolina (Greenville and Charleston), East Tennessee (Kingsport/Johnson City, Knoxville and Morristown), Southwest Virginia (the Roanoke Valley) and Georgia (Greater Atlanta). Forward-Looking StatementsThis press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but instead are based on certain assumptions including statements with respect to the Company's beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by forward-looking statements. The factors that could result in material differentiation include, but are not limited to, natural disasters, including the effects of Hurricane Helene; expected revenues, cost savings, synergies and other benefits from merger and acquisition activities might not be realized to the extent anticipated, within the anticipated time frames, or at all, costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected, and goodwill impairment charges might be incurred; increased competitive pressures among financial services companies; changes in the interest rate environment; changes in general economic conditions, both nationally and in our market areas; legislative and regulatory changes; and the effects of inflation, a potential recession, and other factors described in the Company's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission - which are available on the Company's website at www.htb.com and on the SEC's website at www.sec.gov. Any of the forward-looking statements that the Company makes in this press release or in the documents the Company files with or furnishes to the SEC are based upon management's beliefs and assumptions at the time they are made and may turn out to be wrong because of inaccurate assumptions, the factors described above or other factors that management cannot foresee. The Company does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. Consolidated Balance Sheets (Unaudited) (Dollars in thousands)March 31, 2025 December 31, 2024(1) September 30, 2024 June 30, 2024 March 31, 2024Assets         Cash$14,303  $18,778  $18,980  $18,382  $16,134 Interest-bearing deposits 285,522   260,441   274,497   275,808   364,359 Cash and cash equivalents 299,825   279,219   293,477   294,190   380,493 Certificates of deposit in other banks 25,806   28,538   29,290   32,131   33,625 Debt securities available for sale, at fair value 150,577   152,011   140,552   134,135   120,807 FHLB and FRB stock 13,602   13,630   18,384   19,637   13,691 SBIC investments, at cost 17,746   15,117   15,489   15,462   14,568 Loans held for sale, at fair value 2,175   4,144   2,968   1,614   2,764 Loans held for sale, at the lower of cost or fair value 151,164   202,018   189,722   224,976   220,699 Total loans, net of deferred loan fees and costs 3,648,609   3,648,299   3,698,892   3,701,454   3,648,152 Allowance for credit losses – loans (44,742)   (45,285)   (48,131)   (49,223)   (47,502) Loans, net 3,603,867   3,603,014   3,650,761   3,652,231   3,600,650 Premises and equipment held for sale, at the lower of cost or fair value 8,240   616   616   616   616 Premises and equipment, net 62,347   69,872   69,603   69,880   70,588 Accrued interest receivable 18,269   18,336   17,523   18,412   16,944 Deferred income taxes, net 9,288   10,735   10,100   10,512   11,222 BOLI 91,715   90,868   90,021   89,176   88,369 Goodwill 34,111   34,111   34,111   34,111   34,111 Core deposit intangibles, net 6,080   6,595   7,162   7,730   8,297 Other assets 63,248   66,606   68,130   66,051   67,183 Total assets$4,558,060  $4,595,430  $4,637,293  $4,670,864  $4,684,011 Liabilities and stockholders' equity         Liabilities         Deposits$3,736,360  $3,779,203  $3,761,588  $3,707,779  $3,799,807 Junior subordinated debt 10,145   10,120   10,096   10,070   10,045 Borrowings 177,000   188,000   260,013   364,513   291,513 Other liabilities 69,106   66,349   65,592   64,874   69,473 Total liabilities 3,992,611   4,043,672   4,097,289   4,147,236   4,170,838 Stockholders' equity         Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding —   —   —   —   — Common stock, $0.01 par value, 60,000,000 shares authorized(2) 176   175   175   175   175 Additional paid in capital 176,682   176,693   175,495   172,907   172,919 Retained earnings 393,026   380,541   368,383   357,147   346,598 Unearned Employee Stock Ownership Plan ("ESOP") shares (3,835)   (3,966)   (4,099)   (4,232)   (4,364) Accumulated other comprehensive income (loss) (600)   (1,685)   50   (2,369)   (2,155) Total stockholders' equity 565,449   551,758   540,004   523,628   513,173 Total liabilities and stockholders' equity$4,558,060  $4,595,430  $4,637,293  $4,670,864  $4,684,011  (1)  Derived from audited financial statements.(2)  Shares of common stock issued and outstanding were 17,552,626 at March 31, 2025; 17,527,709 at December 31, 2024; 17,514,922 at September 30, 2024; 17,437,326 at June 30, 2024; and 17,444,787 at March 31, 2024. Consolidated Statements of Income (Unaudited)  Three Months Ended(Dollars in thousands)March 31, 2025 December 31, 2024Interest and dividend income   Loans$58,613 $62,224 Debt securities available for sale 1,787  1,621 Other investments and interest-bearing deposits 3,235  2,353 Total interest and dividend income 63,635  66,198 Interest expense   Deposits 20,363  22,574 Junior subordinated debt 205  223 Borrowings 160  196 Total interest expense 20,728  22,993 Net interest income 42,907  43,205 Provision (benefit) for credit losses 1,540  (855) Net interest income after provision (benefit) for credit losses 41,367  44,060 Noninterest income   Service charges and fees on deposit accounts 2,244  2,326 Loan income and fees 721  728 Gain on sale of loans held for sale 1,908  1,068 BOLI income 842  842 Operating lease income 1,379  2,259 Other 933  1,020 Total noninterest income 8,027  8,243 Noninterest expense   Salaries and employee benefits 17,699  17,234 Occupancy expense, net 2,511  2,476 Computer services 2,805  3,110 Operating lease depreciation expense 1,868  2,068 Telephone, postage and supplies 546  541 Marketing and advertising 452  234 Deposit insurance premiums 511  556 Core deposit intangible amortization 515  567 Contract renewal consulting fee —  2,965 Other 4,054  4,258 Total noninterest expense 30,961  34,009 Income before income taxes 18,433  18,294 Income tax expense 3,894  4,086 Net income$14,539 $14,208  Per Share Data   Three Months Ended   March 31, 2025 December 31, 2024Net income per common share(1)    Basic $0.84 $0.83Diluted $0.84 $0.83Average shares outstanding    Basic  17,011,359  16,983,751Diluted  17,113,424  17,084,943Book value per share at end of period $32.21 $31.48Tangible book value per share at end of period(2) $30.00 $29.24Cash dividends declared per common share $0.12 $0.12Total shares outstanding at end of period  17,552,626  17,527,709 (1)  Basic and diluted net income per common share have been prepared in accordance with the two-class method. (2)  See Non-GAAP reconciliations below for adjustments. Selected Financial Ratios and Other Data  Three Months Ended March 31, 2025 December 31, 2024Performance ratios(1) Return on assets (ratio of net income to average total assets)1.33%  1.27% Return on equity (ratio of net income to average equity)10.52  10.32 Yield on earning assets6.20  6.27 Rate paid on interest-bearing liabilities2.73  2.94 Average interest rate spread3.47  3.33 Net interest margin(2)4.18  4.09 Average interest-earning assets to average interest-bearing liabilities135.25  134.81 Noninterest expense to average total assets2.84  3.03 Efficiency ratio60.79  66.10 Efficiency ratio – adjusted(3)60.29  59.89  (1)  Ratios are annualized where appropriate.(2)  Net interest income divided by average interest-earning assets.(3)  See Non-GAAP reconciliations below for adjustments.  At or For the Three Months Ended March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024Asset quality ratios         Nonperforming assets to total assets(1)0.61%  0.63%  0.64%  0.54%  0.43% Nonperforming loans to total loans(1)0.74  0.76  0.78  0.68  0.55 Total classified assets to total assets0.85  1.06  0.99  0.91  0.80 Allowance for credit losses to nonperforming loans(1)165.96  163.68  166.51  194.80  235.18 Allowance for credit losses to total loans1.23  1.24  1.30  1.33  1.30 Net charge-offs to average loans (annualized)0.14  0.19  0.42  0.27  0.24 Capital ratios         Equity to total assets at end of period12.41%  12.01%  11.64%  11.21%  10.96% Tangible equity to total tangible assets(2)11.65  11.25  10.88  10.44  10.18 Average equity to average assets12.66  12.28  12.02  11.78  11.51  (1)  Nonperforming assets include nonaccruing loans and repossessed assets. There were no accruing loans more than 90 days past due at the dates indicated. At March 31, 2025, $7.5 million, or 27.9%, of nonaccruing loans were current on their loan payments as of that date.(2)  See Non-GAAP reconciliations below for adjustments. Loans (Dollars in thousands)March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024Commercial real estate         Construction and land development$247,539  $274,356  $300,905  $316,050  $304,727 Commercial real estate – owner occupied 570,150   545,490   544,689   545,631   532,547 Commercial real estate – non-owner occupied 867,711   866,094   881,340   892,653   881,143 Multifamily 118,094   120,425   114,155   92,292   89,692 Total commercial real estate 1,803,494   1,806,365   1,841,089   1,846,626   1,808,109 Commercial         Commercial and industrial 349,085   316,159   286,809   266,136   243,732 Equipment finance 380,166   406,400   443,033   461,010   462,649 Municipal leases 163,554   165,984   158,560   152,509   151,894 Total commercial 892,805   888,543   888,402   879,655   858,275 Residential real estate         Construction and land development 56,858   53,683   63,016   70,679   85,840 One-to-four family 631,537   630,391   627,845   621,196   605,570 HELOCs 199,747   195,288   194,909   188,465   184,274 Total residential real estate 888,142   879,362   885,770   880,340   875,684 Consumer 64,168   74,029   83,631   94,833   106,084 Total loans, net of deferred loan fees and costs 3,648,609   3,648,299   3,698,892   3,701,454   3,648,152 Allowance for credit losses – loans (44,742)   (45,285)   (48,131)   (49,223)   (47,502) Loans, net$3,603,867  $3,603,014  $3,650,761  $3,652,231  $3,600,650  Deposits (Dollars in thousands)March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024Core deposits         Noninterest-bearing accounts$721,814 $680,926 $684,501 $683,346 $773,901NOW accounts 573,745  575,238  534,517  561,789  600,561Money market accounts 1,357,961  1,341,995  1,345,289  1,311,940  1,308,467Savings accounts 184,396  181,317  179,762  185,499  191,302Total core deposits 2,837,916  2,779,476  2,744,069  2,742,574  2,874,231Certificates of deposit 898,444  999,727  1,017,519  965,205  925,576Total$3,736,360 $3,779,203 $3,761,588 $3,707,779 $3,799,807 Non-GAAP ReconciliationsIn addition to results presented in accordance with generally accepted accounting principles utilized in the United States ("GAAP"), this earnings release contains certain non-GAAP financial measures, which include: the efficiency ratio, tangible book value, tangible book value per share and the tangible equity to tangible assets ratio. The Company believes these non-GAAP financial measures and ratios as presented are useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time and in comparison to its competitors. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Set forth below is a reconciliation to GAAP of the Company's efficiency ratio:   Three Months Ended(Dollars in thousands) March 31, 2025 December 31, 2024Noninterest expense $30,961 $34,009Less: contract renewal consulting fee  —  2,965Noninterest expense – adjusted $30,961 $31,044     Net interest income $42,907 $43,205Plus: tax-equivalent adjustment  418  389Plus: noninterest income  8,027  8,243Net interest income plus noninterest income – adjusted $51,352 $51,837 Efficiency ratio 60.79% 66.10%Efficiency ratio – adjusted 60.29% 59.89% Set forth below is a reconciliation to GAAP of tangible book value and tangible book value per share:   As of(Dollars in thousands, except per share data) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024Total stockholders' equity $565,449 $551,758 $540,004 $523,628 $513,173Less: goodwill, core deposit intangibles, net of taxes  38,793  39,189  39,626  40,063  40,500Tangible book value $526,656 $512,569 $500,378 $483,565 $472,673Common shares outstanding  17,552,626  17,527,709  17,514,922  17,437,326  17,444,787Book value per share $32.21 $31.48 $30.83 $30.03 $29.42Tangible book value per share $30.00 $29.24 $28.57 $27.73 $27.10 Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:   As of(Dollars in thousands) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024Tangible equity(1) $526,656 $512,569 $500,378 $483,565 $472,673Total assets  4,558,060  4,595,430  4,637,293  4,670,864  4,684,011Less: goodwill, core deposit intangibles, net of taxes  38,793  39,189  39,626  40,063  40,500Total tangible assets $4,519,267 $4,556,241 $4,597,667 $4,630,801 $4,643,511 Tangible equity to tangible assets 11.65% 11.25% 10.88% 10.44% 10.18% (1)  Tangible equity (or tangible book value) is equal to total stockholders' equity less goodwill and core deposit intangibles, net of related deferred tax liabilities.

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