HomeTrust Signs Blue Ridge Deal, Lifts Buybacks

The Tip Desk · October 22, 2026 · 3 min read

Net interest margin reached 4.46% and the company completed its August repurchase program in October after buying 923,897 shares in the quarter.

HomeTrust Bancshares, Inc. (HTB), the holding company of HomeTrust Bank, signed a definitive merger agreement on August 16, 2026 to acquire Blue Ridge Bankshares, Inc., and accelerated share repurchases during the third quarter.

The transaction is expected to close early in the first quarter of 2027, subject to regulatory and shareholder approvals, and would create a commercial bank with more than $7 billion in assets and over 60 locations across the Southeast. Blue Ridge shareholders are expected to own approximately 35% of the combined company, which will continue to trade as HTB. President and Chief Executive Officer Hunter Westbrook said Blue Ridge brings a deposit franchise, a growing commercial loan portfolio, and Virginia relationships that complement HomeTrust’s existing footprint.

The quarter also included $904,000 of merger-related expense for professional fees and due diligence, with no such costs in the prior quarter.

Net income was $18.0 million, or $1.11 a share, compared with $15.6 million, or $0.94 a share, in the quarter ended June 30, 2026. Annualized return on assets was 1.65% and return on equity 12.06%. The company said results were lifted by a $1.2 million increase in net interest income and a $1.4 million decrease in income tax expense from utilization of purchased renewable energy income tax credits, which produced a $1.9 million federal tax benefit. The effective tax rate fell to 12.7% from 20.4%.

Net interest margin expanded 5 basis points to 4.46% from 4.41%, after a 10 basis point expansion in the prior quarter. Non-tax-equivalent net interest income rose $1.2 million to $46.5 million. Average loans receivable increased to $3.80 billion from $3.77 billion, and the loan yield rose to 6.19% from 6.12%. The volume/rate table attributed a $1.17 million increase in net interest income, including a $1.82 million rise in loan interest income.

Total interest-bearing deposits averaged $2.84 billion at a cost of 2.27%, up from $2.82 billion at 2.22%. Money market and certificate balances and rates both rose. Noninterest-bearing deposits averaged $812.3 million.

The provision for credit losses fell to $805,000 from $920,000. The loans portion was $790,000. Net charge-offs were $1.1 million in the September quarter versus $1.8 million in the June quarter. The company said the loans provision reflected a $0.5 million benefit from loan mix and a $0.2 million provision tied to the projected national unemployment rate and qualitative adjustments, offset by the charge-offs.

Noninterest income declined $178,000, or 1.9%, to $9.07 million. Gain on sale of premises and equipment fell to $21,000 from $1.10 million, and gains on sale of loans held for sale dropped to $1.59 million from $1.87 million, as sales of the guaranteed portion of SBA commercial loans and residential mortgages declined. Loan income and fees rose $677,000, primarily from higher prepayment penalties. Operating lease income increased on net gains of $274,000 upon contract termination.

Noninterest expense rose $158,000, or 0.5%, to $34.14 million, including the merger-related costs and a $1.08 million reduction from the prior quarter’s loss on redemption of junior subordinated debt. Salaries and employee benefits were $20.13 million.

The company repurchased 923,897 shares at an average $48.03, compared with 153,606 shares at $46.31 in the prior quarter. Westbrook said the company completed the stock repurchase program initiated in August 2026 and authorized the repurchase of an additional 5% of outstanding shares, actions he said allow the company to deploy excess capital. The board declared a quarterly cash dividend of $0.15 a share, payable November 25, 2026.