| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 31.86 | -26 |
| Intrinsic value (DCF) | 32.38 | -25 |
| Graham-Dodd Method | 39.97 | -7 |
| Graham Formula | 60.37 | 40 |
HomeTrust Bancshares, Inc. (NYSE: HTB) is a regional bank holding company operating through its subsidiary, HomeTrust Bank, providing a comprehensive suite of retail and commercial banking services. Founded in 1926 and headquartered in Asheville, North Carolina, the bank serves customers across North Carolina, Upstate South Carolina, East Tennessee, and Southwest Virginia through 41 branches. HomeTrust offers a diversified portfolio of deposit products, including savings, money market, and demand accounts, alongside certificates of deposit tailored for individuals, businesses, and nonprofits. Its lending operations span residential mortgages, home equity lines, commercial real estate, SBA loans, and indirect auto financing. With a market cap of approximately $620 million, HomeTrust emphasizes community banking with digital capabilities, including online and mobile banking services. The bank’s conservative risk profile (beta: 0.73) and steady profitability (EPS: $3.22 in latest reporting) position it as a stable player in the competitive Southeast U.S. regional banking sector.
HomeTrust Bancshares presents a moderate-risk investment opportunity with stable fundamentals. Its low beta (0.73) suggests resilience to market volatility, while a diluted EPS of $3.22 and net income of $54.8 million reflect consistent profitability. The bank’s focus on community lending and diversified loan portfolio mitigates concentration risks, though its regional exposure limits growth scalability compared to national peers. A modest dividend yield (~1.5% at current share price) adds income appeal, but investors should monitor rising interest rate pressures on net interest margins. Capital expenditures ($16.7 million) indicate ongoing digital and operational investments, which could enhance efficiency. Valuation appears reasonable given its market cap and regional positioning, but competition from larger banks and fintechs remains a headwind.
HomeTrust Bancshares competes in the crowded Southeast U.S. regional banking market, differentiating itself through hyper-localized service and a diversified loan book. Its competitive advantages include deep community ties, a low-cost deposit base (evidenced by $307.8 million in cash equivalents), and a conservative balance sheet (total debt of just $10.1 million). The bank’s focus on SBA lending and indirect auto finance provides niche revenue streams less reliant on interest rate swings. However, its small scale (41 branches) limits economies of scale compared to national players, and its digital offerings lag behind tech-forward competitors. HomeTrust’s ROA and net interest margin align with regional peers, but its growth trajectory is constrained by geographic concentration. The bank’s strength lies in relationship banking, but it must accelerate digital transformation to retain younger demographics. Competitive pricing on deposits and loans is challenging amid aggressive moves by larger banks like Truist and First Citizens.