HomeTrust Bancshares, Inc. Announces Profitability Improvement Plan by Closing Nine Bank Branches
June 15, 2021 at 09:15 am EDT
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HomeTrust Bancshares, Inc., the holding company of HomeTrust Bank announced its plans to further improve profitability by closing nine bank branches and restructuring its balance sheet with the prepayment of its remaining long-term borrowings. In addition, beginning July 1, 2021, the Bank will bring its back-office Small Business Administration (“SBA”) loan servicing process in-house, which is expected to provide additional servicing fee and gain on sale income. The Bank plans to close nine branches in North Carolina, Tennessee, and Virginia, which represents 22% of its total branch footprint and will reduce operating expenses and provide additional company-wide efficiencies. As a result of these closures, the Company expects to record a total pre-tax charge of approximately $1.5 million for costs associated with impacted employees, impairment of an operating lease asset, the write-down of branch facilities, and other net costs, during the fourth quarter of fiscal year 2021. The branch closures are part of the Company’s ongoing strategic initiatives to respond to changing customer preferences and to improve the financial performance of the Company. The Bank expects to service customers of the closed branches through its remaining network of 32 branches and digital banking services.
HomeTrust Bancshares, Inc. is the holding company for HomeTrust Bank (the Bank). The Bank is a North Carolina state chartered, community-focused financial institution. The Bank provides value-added relationship banking with over 30 locations, as well as online/mobile channels. The Bank's principal business consists of attracting deposits from the general public and investing those funds, along with borrowed funds, in commercial real estate loans, construction and development loans, commercial and industrial loans, equipment finance leases, municipal leases, loans secured by first and second mortgages on one-to-four family residences, including home equity loans, and other consumer loans. In addition, it invests in debt securities issued by United States Government agencies and GSEs, municipal bonds, corporate bonds, commercial paper and certificates of deposit insured by the FDIC. It offers a variety of deposit accounts for individuals, businesses and nonprofit organizations.