|
(Mark One)
|
[X]
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Maryland
|
45-5055422
|
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification No.)
|
|
10 Woodfin Street, Asheville, North Carolina
|
28801
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Title of Each Class
|
Name of Each Exchange on Which Registered
|
|
Common Stock, par value $0.01 per share
|
The NASDAQ Stock Market LLC
|
Large Accelerated Filer [ ]
|
Accelerated Filer [X]
|
|
Non-Accelerated Filer [ ] (Do not check if a smaller reporting company)
|
Smaller reporting company [ ]
|
|
|
Page
|
PART I
|
||
Item 1
|
Business
|
4
|
Item 1A.
|
Risk Factors
|
47
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Item 1B.
|
Unresolved Staff Comments
|
57
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Item 2
|
Properties
|
57
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Item 3
|
Legal Proceedings
|
57
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Item 4
|
Mine Safety Disclosures
|
57
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PART II
|
||
Item 5
|
Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases
of Equity Securities
|
58
|
Item 6
|
Selected Financial Data
|
60
|
Item 7
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
63
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
81
|
Item 8
|
Financial Statements and Supplementary Data
|
82
|
Item 9
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
126
|
Item 9A.
|
Control and Procedures
|
126
|
Item 9B.
|
Other Information
|
127
|
PART III
|
||
Item 10
|
Directors, Executive Officers and Corporate Governance
|
128
|
Item 11
|
Executive Compensation
|
128
|
Item 12
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
128
|
Item 13
|
Certain Relationships and Related Transactions, and Director Independence
|
128
|
Item 14
|
Principal Accountant Fees and Services
|
128
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PART IV
|
||
Item 15
|
Exhibits and Financial Statement Schedules
|
129
|
Signatures
|
130
|
|
·
|
HomeTrust Bank, since 1926, Asheville, North Carolina
|
|
·
|
Tryon Federal Bank, since 1935, Tryon, North Carolina
|
|
·
|
Shelby Savings Bank, since 1905, Shelby, North Carolina
|
|
·
|
Home Savings Bank, since 1909, Eden, North Carolina
|
|
·
|
Industrial Federal Bank, since 1929, Lexington, North Carolina
|
|
·
|
Cherryville Federal Bank, since 1912, Cherryville, North Carolina
|
|
·
|
Rutherford County Bank, since 2007, Forest City, North Carolina
|
|
Tennessee calls Knoxville home, with over 27,000 students, making an array of educational and cultural opportunities available to area residents. Affordable housing, health care costs below the national average, a low crime rate, and a pleasant climate with lakes and mountains nearby are factors which make Knoxville an attractive place to settle. Major employment sectors in the Knoxville area include government, education, and healthcare. The estimated population of the Knoxville, TN MSA in 2013 was 852,715, an increase of 21.0% from 2011. The average unemployment rate in the Knoxville, TN metropolitan area in 2013 was 6.9%, a slight increase from 6.7% in 2012, and a decrease from 7.5% in 2011.
|
At June 30,
|
||||||||||||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||||||||||||||||||||||
One- to four-family
|
$ | 660,200 | 44.08 | % | $ | 602,980 | 51.69 | % | $ | 620,486 | 50.36 | % | $ | 610,528 | 45.88 | % | $ | 509,464 | 39.50 | % | ||||||||||||||||||||
Home equity
|
148,379 | 9.91 | 125,676 | 10.77 | 143,052 | 11.61 | 156,720 | 11.78 | 157,050 | 12.18 | ||||||||||||||||||||||||||||||
Construction and land/lots
|
59,249 | 3.96 | 51,546 | 4.42 | 53,572 | 4.35 | 68,199 | 5.12 | 79,007 | 6.13 | ||||||||||||||||||||||||||||||
Consumer
|
15,164 | 1.01 | 3,349 | 0.29 | 3,819 | 0.31 | 4,265 | 0.32 | 3,769 | 0.29 | ||||||||||||||||||||||||||||||
Total retail consumer loans
|
882,992 | 58.95 | 783,551 | 67.17 | 820,2929 | 66.63 | 839,712 | 63.10 | 749,290 | 58.09 | ||||||||||||||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||||||||||||||||||
Commercial real estate
|
377,769 | 25.22 | 231,086 | 19.81 | 238,644 | 19.37 | 269,449 | 20.24 | 270,272 | 20.95 | ||||||||||||||||||||||||||||||
Construction and development
|
56,457 | 3.77 | 23,994 | 2.06 | 42,362 | 3.44 | 79,458 | 5.97 | 127,054 | 9.85 | ||||||||||||||||||||||||||||||
Commercial and industrial
|
74,435 | 4.97 | 11,452 | 0.98 | 14,578 | 1.18 | 19,250 | 1.45 | 20,117 | 1.56 | ||||||||||||||||||||||||||||||
Municipal leases
|
106,215 | 7.09 | 116,377 | 9.98 | 115,516 | 9.38 | 122,921 | 9.24 | 123,099 | 9.54 | ||||||||||||||||||||||||||||||
Total commercial loans
|
614,876 | 41.05 | 382,909 | 32.83 | 411,100 | 33.37 | 491,078 | 36.90 | 540,542 | 41.91 | ||||||||||||||||||||||||||||||
Total loans
|
1,497,868 | 100.00 | % | 1,166,460 | 100.00 | % | 1,232,029 | 100.00 | % | 1,330,790 | 100.00 | % | 1,289,832 | 100.00 | % | |||||||||||||||||||||||||
Less
:
|
||||||||||||||||||||||||||||||||||||||||
Deferred fees
|
(1,340 | ) | (2,277 | ) | (2,984 | ) | (4,273 | ) | (4,509 | ) | ||||||||||||||||||||||||||||||
Allowance for losses
|
(23,429 | ) | (32,073 | ) | (35,100 | ) | (50,140 | ) | (41,713 | ) | ||||||||||||||||||||||||||||||
Total loans receivable, net
|
$ | 1,473,099 | $ | 1,132,110 | $ | 1,193,945 | $ | 1,276,377 | $ | 1,243,610 | ||||||||||||||||||||||||||||||
At June 30,
|
||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Fixed-rate loans
:
|
||||||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||||||
One- to four-family
|
$ | 350,725 | 23.42 | % | $ | 340,399 | 29.18 | % | $ | 329,171 | 26.72 | % | ||||||||||||
Home equity
|
- | - | 711 | 0.06 | 201 | 0.02 | ||||||||||||||||||
Construction and land/lots
|
37,484 | 2.50 | 30,163 | 2.59 | 24,652 | 2.00 | ||||||||||||||||||
Consumer
|
14,911 | 1.00 | 3,327 | 0.29 | 3,797 | 0.31 | ||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||
Commercial real estate
|
258,272 | 17.24 | 167,168 | 14.33 | 157,209 | 12.76 | ||||||||||||||||||
Construction and development
|
36,070 | 2.41 | 15,933 | 1.37 | 21,566 | 1.75 | ||||||||||||||||||
Commercial and industrial
|
40,606 | 2.71 | 8,732 | 0.75 | 8,660 | 0.70 | ||||||||||||||||||
Municipal leases
|
106,215 | 7.09 | 116,377 | 9.98 | 115,516 | 9.38 | ||||||||||||||||||
Total fixed-rate loans
|
844,283 | 56.37 | 682,810 | 58.54 | 660,772 | 53.63 | ||||||||||||||||||
Adjustable-rate loans
:
|
||||||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||||||
One- to four-family
|
309,475 | 20.66 | 262,581 | 22.51 | 291,315 | 23.65 | ||||||||||||||||||
Home equity
|
148,379 | 9.91 | 124,965 | 10.71 | 142,851 | 11.59 | ||||||||||||||||||
Construction and land/lots
|
21,765 | 1.45 | 21,383 | 1.83 | 28,920 | 2.35 | ||||||||||||||||||
Consumer
|
253 | 0.02 | 22 | - | 22 | - | ||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||
Commercial real estate
|
119,497 | 7.98 | 63,918 | 5.48 | 81,435 | 6.61 | ||||||||||||||||||
Construction and development
|
20,387 | 1.36 | 8,061 | 0.69 | 20,796 | 1.69 | ||||||||||||||||||
Commercial and industrial
|
33,829 | 2.26 | 2,720 | 0.23 | 5,918 | 0.48 | ||||||||||||||||||
Municipal leases
|
- | - | - | - | - | - | ||||||||||||||||||
Total adjustable-rate loans
|
653,585 | 43.63 | 483,650 | 41.46 | 571,257 | 46.37 | ||||||||||||||||||
Total loans
|
1,497,868 | 100.00 | % | 1,166,460 | 100.00 | % | 1,232,029 | 100.00 | % | |||||||||||||||
Less
:
|
||||||||||||||||||||||||
Deferred fees
|
(1,340 | ) | (2,277 | ) | (2,984 | ) | ||||||||||||||||||
Allowance for losses
|
(23,429 | ) | (32,073 | ) | (35,100 | ) | ||||||||||||||||||
Total loans receivable, net
|
$ | 1,473,099 | $ | 1,132,110 | $ | 1,193,945 |
Retail Consumer
|
||||||||||||||||||||||||||||||||
One- to Four-Family
|
Home Equity
|
Construction and land/lots
|
Consumer
|
|||||||||||||||||||||||||||||
Amount
|
Weighted
Average
Rate
|
Amount
|
Weighted
Average
Rate
|
Amount
|
Weighted
Average
Rate
|
Amount
|
Weighted
Average
Rate
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Due During
Years Ending June 30,
|
||||||||||||||||||||||||||||||||
2015
|
$ | 15,788 | 5.58 | % | $ | 1,577 | 4.55 | % | $ | 1,997 | 6.37 | % | $ | 1,876 | 3.15 | % | ||||||||||||||||
2016
|
8,120 | 5.56 | 2,632 | 4.17 | 2,207 | 5.91 | 793 | 5.00 | ||||||||||||||||||||||||
2017
|
9,009 | 5.75 | 4,838 | 3.96 | 1,412 | 6.66 | 1,114 | 5.55 | ||||||||||||||||||||||||
2018 and 2019
|
30,156 | 5.14 | 21,139 | 4.10 | 1,646 | 6.53 | 2,809 | 4.80 | ||||||||||||||||||||||||
2020 to 2023
|
99,745 | 4.08 | 61,603 | 4.37 | 4,016 | 5.83 | 7,499 | 4.67 | ||||||||||||||||||||||||
2024 to 2028
|
106,033 | 4.16 | 44,174 | 3.94 | 11,309 | 5.88 | 276 | 4.50 | ||||||||||||||||||||||||
2029 and following
|
391,349 | 4.14 | 12,416 | 2.87 | 36,662 | 4.09 | 797 | 14.14 | ||||||||||||||||||||||||
Total
|
$ | 660,200 | 4.25 | % | $ | 148,379 | 4.04 | % | $ | 59,249 | 4.82 | % | $ | 15,164 | 4.93 | % |
Commercial Loans
|
||||||||||||||||||||||||||||||||
Commercial Real Estate
|
Construction and
Development
|
Commercial and Industrial
|
Municipal Leases
(1)
|
|||||||||||||||||||||||||||||
Amount
|
Weighted
Average
Rate
|
Amount
|
Weighted
Average
Rate
|
Amount
|
Weighted
Average
Rate
|
Amount
|
Weighted
Average
Rate
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Due During
Years Ending June 30,
|
||||||||||||||||||||||||||||||||
2015
|
$ | 51,314 | 5.22 | % | $ | 25,562 | 4.94 | % | $ | 37,811 | 4.62 | % | $ | 1,254 | 5.97 | % | ||||||||||||||||
2016
|
22,574 | 5.36 | 4,942 | 4.64 | 4,614 | 4.54 | 1,534 | 6.95 | ||||||||||||||||||||||||
2017
|
34,302 | 4.96 | 5,955 | 4.61 | 5,280 | 4.89 | 2,227 | 7.42 | ||||||||||||||||||||||||
2018 and 2019
|
150,813 | 4.31 | 12,556 | 4.43 | 16,474 | 4.30 | 8,178 | 6.38 | ||||||||||||||||||||||||
2020 to 2023
|
81,675 | 4.40 | 4,941 | 3.97 | 5,443 | 4.14 | 14,895 | 7.06 | ||||||||||||||||||||||||
2024 to 2028
|
28,168 | 4.53 | 2,249 | 4.29 | 4,111 | 4.92 | 38,659 | 7.34 | ||||||||||||||||||||||||
2029 and following
|
8,923 | 3.17 | 252 | 6.16 | 702 | 5.81 | 39,468 | 7.31 | ||||||||||||||||||||||||
Total
|
$ | 377,769 | 4.50 | % | $ | 56,457 | 4.68 | % | $ | 74,435 | 4.55 | % | $ | 106,215 | 7.19 | % |
Total
|
||||||||
Amount
|
Weighted
Average
Rate
|
|||||||
(Dollars in thousands)
|
||||||||
Due During Years Ending June 30,
|
||||||||
2015
|
$ | 137,179 | 5.06 | % | ||||
2016
|
47,416 | 5.24 | ||||||
2017
|
64,137 | 5.09 | ||||||
2018 and 2019
|
243,770 | 4.49 | ||||||
2020 to 2023
|
279,817 | 4.43 | ||||||
2024 to 2028
|
234,980 | 4.78 | ||||||
2029 and following
|
490,569 | 4.29 | ||||||
Total
|
$ | 1,497,868 | 4.56 | % |
(1)
|
The weighted average rate of municipal loans is adjusted for a 34% federal tax rate since the interest income from these leases is tax exempt.
|
Years Ended June 30,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
(In thousands)
|
||||||||||||
Originations by type:
|
||||||||||||
Retail consumer:
|
||||||||||||
One- to four-family
|
$ | 141,743 | $ | 347,925 | $ | 330,106 | ||||||
Home equity
|
30,030 | 13,716 | 17,782 | |||||||||
Construction and land/lots
|
49,455 | 35,907 | 33,668 | |||||||||
Consumer
|
12,892 | 2,123 | 2,963 | |||||||||
Commercial loans:
|
||||||||||||
Commercial real estate
|
35,773 | 28,649 | 16,008 | |||||||||
Construction and development
|
13,389 | 3,971 | 1,636 | |||||||||
Commercial and industrial
|
18,960 | 4,013 | 2,993 | |||||||||
Total loans originated
|
$ | 302,242 | $ | 436,304 | $ | 405,156 | ||||||
Purchases:
|
||||||||||||
Commercial loans:
|
||||||||||||
Commercial real estate
|
$ | 330 | $ | 205 | $ | 580 | ||||||
Municipal leases
|
15,814 | 23,540 | 16,428 | |||||||||
Loans acquired through business combination
|
377,093 | - | - | |||||||||
Total loans purchased or acquired
|
$ | 393,237 | $ | 23,745 | $ | 17,008 | ||||||
Sales and repayments:
|
||||||||||||
Retail consumer:
One- to four-family sales
|
$ | 4,095 | $ | 227,117 | $ | 192,383 | ||||||
Home equity
|
117 | 141 | 95 | |||||||||
Construction and land/lots
|
219 | - | - | |||||||||
Consumer
|
27 | - | - | |||||||||
Commercial loans:
Commercial real estate
|
427 | 827 | 534 | |||||||||
Construction and development
|
213 | 500 | 6,273 | |||||||||
Total sales
|
5,098 | 228,585 | 199,285 | |||||||||
Principal repayments
|
366,276 | 297,033 | 315,423 | |||||||||
Total reductions
|
$ | 371,374 | $ | 525,618 | $ | 514,708 | ||||||
Net increase (decrease)
|
$ | 324,105 | $ | (65,569 | ) | $ | (92,544 | ) |
Loans Delinquent For:
|
||||||||||||||||||||||||||||||||||||
Total Loans Delinquent
|
||||||||||||||||||||||||||||||||||||
30-89 Days
|
90 Days and Over
|
30 Days or More
|
||||||||||||||||||||||||||||||||||
Percent of
|
Percent of
|
Percent of
|
||||||||||||||||||||||||||||||||||
Loan
|
Loan
|
Loan
|
||||||||||||||||||||||||||||||||||
Number
|
Amount
|
Category
|
Number
|
Amount
|
Category
|
Number
|
Amount
|
Category
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||||||||||||||||||
One-to four-family
|
62 | $ | 4,929 | 0.75 | % | 64 | $ | 8,208 | 1.24 | % | 126 | $ | 13,137 | 1.99 | % | |||||||||||||||||||||
Home equity
|
9 | 400 | 0.27 | % | 24 | 939 | 0.63 | % | 33 | 1,339 | 0.90 | % | ||||||||||||||||||||||||
Construction and land/lots
|
6 | 508 | 0.86 | % | 5 | 122 | 0.20 | % | 11 | 630 | 1.06 | % | ||||||||||||||||||||||||
Consumer
|
8 | 34 | 0.18 | % | 14 | 16 | 0.15 | % | 22 | 50 | 0.33 | % | ||||||||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||||||||||||||
Commercial real estate
|
2 | 306 | 0.08 | % | 19 | 6,729 | 1.78 | % | 21 | 7,035 | 1.86 | % | ||||||||||||||||||||||||
Construction and development
|
5 | 1,165 | 2.06 | % | 14 | 3,789 | 6.71 | % | 19 | 4,954 | 8.77 | % | ||||||||||||||||||||||||
Commercial and industrial
|
4 | 183 | 0.25 | % | 14 | 576 | 0.77 | % | 18 | 759 | 1.02 | % | ||||||||||||||||||||||||
Municipal leases
|
0 | - | - | % | 0 | - | - | % | 0 | - | - | % | ||||||||||||||||||||||||
Total
|
96 | $ | 7,525 | 0.50 | % | 154 | $ | 20,379 | 1.36 | % | 250 | $ | 27,904 | 1.86 | % |
At June 30,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Non-accruing loans:
Retail consumer loans:
|
||||||||||||||||||||
One-to four-family
|
$ | 17,967 | $ | 29,811 | $ | 27,659 | $ | 17,821 | $ | 9,076 | ||||||||||
Home equity
|
3,114 | 3,793 | 4,781 | 2,536 | 4,059 | |||||||||||||||
Construction and land/lots
|
688 | 2,172 | 3,437 | 2,766 | 2,549 | |||||||||||||||
Consumer
|
27 | 42 | 76 | 23 | 28 | |||||||||||||||
Commercial loans:
|
||||||||||||||||||||
Commercial real estate
|
16,941 | 21,149 | 15,008 | 8,197 | 12,097 | |||||||||||||||
Construction and development
|
6,270 | 10,172 | 12,583 | 16,620 | 18,005 | |||||||||||||||
Commercial and industrial
|
2,004 | 1,422 | 637 | 40 | - | |||||||||||||||
Municipal leases
|
- | - | - | 474 | 486 | |||||||||||||||
Total non-accruing loans
|
47,011 | 68,561 | 64,181 | 48,477 | 46,300 | |||||||||||||||
REO assets:
|
||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||
One-to four-family
|
3,876 | 4,276 | 7,297 | 4,299 | 6,764 | |||||||||||||||
Home equity
|
627 | 642 | - | 32 | 268 | |||||||||||||||
Construction and land/lots
|
1,613 | 1,861 | 1,616 | 1,326 | 416 | |||||||||||||||
Consumer
|
- | - | - | - | - | |||||||||||||||
Commercial loans:
|
||||||||||||||||||||
Commercial real estate
|
4,884 | 2,016 | 2,449 | 2,023 | 4,095 | |||||||||||||||
Construction and development
|
4,725 | 2,943 | 4,768 | 6,177 | 5,744 | |||||||||||||||
Commercial and industrial
|
- | - | - | - | - | |||||||||||||||
Municipal leases
|
- | - | - | - | - | |||||||||||||||
Total foreclosed assets
|
15,725 | 11,738 | 16,130 | 13,857 | 17,287 | |||||||||||||||
Total non-performing assets
|
$ | 62,736 | $ | 80,299 | $ | 80,311 | $ | 62,334 | $ | 63,587 | ||||||||||
Total non-performing assets as a percentage of total assets
|
3.02 | % | 5.07 | % | 4.67 | % | 3.81 | % | 3.87 | % | ||||||||||
Performing Troubled Debt Restructurings
|
$ | 22,179 | $ | 14,012 | $ | 20,588 | $ | 49,379 | $ | 28,655 |
Amount
|
Percent of Total
Non-Accruing Loans
|
Collateral Securing the Indebtedness
|
Geographic Location
|
|||||
$ | 1,372 | 2.92 | % |
1
st
Lien on 1-4 Family Residential Real Estate
|
Buncombe County, NC
|
|||
1,368 | 2.91 |
1
st
Lien on 1-4 Family Residential Real Estate
|
Buncombe County, NC
|
|||||
1,357 | 2.89 |
1
st
Lien on Non Owner Occupied Medical Office
Commercial Real Estate
|
Cleveland County, NC
|
|||||
1,144 | 2.43 |
1
st
Lien on Improved Land for Commercial
Development
|
Buncombe County, NC
|
|||||
1,104 | 2.35 |
1
st
Lien on 1-4 Family Residential Real Estate
|
Polk County, NC
|
|||||
1,101 | 2.34 |
1
st
Lien on Non Owner Occupied RV Campground
Commercial Real Estate
|
Sullivan County, TN
|
|||||
1,016 | 2.16 |
1
st
Lien on Owner Occupied Industrial Warehouse
Commercial Real Estate
|
Hamblen County, TN
|
|||||
$ | 8,462 | 18.00 | % |
At June 30,
|
||||||||
2014
|
2013
|
|||||||
(In thousands)
|
||||||||
Classified Assets:
|
||||||||
Loss
|
$ | 18 | $ | 43 | ||||
Doubtful
|
5,967 | 9,159 | ||||||
Substandard – performing
|
31,374 | 36,710 | ||||||
– non-accruing
|
41,531 | 59,911 | ||||||
Total Classified Loans
|
78,890 | 105,823 | ||||||
Real Estate Owned
|
15,725 | 11,738 | ||||||
Total Classified Assets
|
94,615 | 117,561 | ||||||
Special Mention loans
|
45,927 | 41,402 | ||||||
Total Classified Assets and Special Mention Loans
|
$ | 140,542 | $ | 158,963 |
At June 30,
|
||||||||||||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||||||||||||||||||||||
Amount
|
Percent
of loans
in each
category
to total
loans
|
Amount
|
Percent
of loans
in each
category
to total
loans
|
Amount
|
Percent
of loans
in each
category
to total
loans
|
Amount
|
Percent
of loans
in each
category
to total
loans
|
Amount
|
Percent
of loans
in each
category
to total
loans
|
|||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Allocated at end of period to:
|
||||||||||||||||||||||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||||||||||||||||||||||
One- to four-family
|
$ | 10,527 | 44.08 | % | $ | 15,098 | 51.69 | % | $ | 14,557 | 50.36 | % | $ | 14,108 | 45.88 | % | $ | 9,188 | 39.50 | % | ||||||||||||||||||||
Home equity
|
2,487 | 9.91 | 3,827 | 10.77 | 3,531 | 11.61 | 3,710 | 11.78 | 3,251 | 12.18 | ||||||||||||||||||||||||||||||
Construction and land/lots
|
2,420 | 3.96 | 2,890 | 4.42 | 2,955 | 4.35 | 5,507 | 5.12 | 2,177 | 6.13 | ||||||||||||||||||||||||||||||
Consumer
|
297 | 1.01 | 138 | 0.29 | 129 | 0.31 | 213 | 0.32 | 132 | 0.29 | ||||||||||||||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||||||||||||||||||
Commercial real estate
|
5,439 | 25.22 | 6,583 | 19.81 | 6,454 | 19.37 | 9,427 | 20.24 | 10,668 | 20.95 | ||||||||||||||||||||||||||||||
Construction and
|
||||||||||||||||||||||||||||||||||||||||
development
|
1,241 | 3.77 | 2,399 | 2.06 | 6,253 | 3.44 | 15,599 | 5.97 | 14,648 | 9.85 | ||||||||||||||||||||||||||||||
Commercial and industrial
|
249 | 4.97 | 156 | 0.98 | 315 | 1.18 | 453 | 1.45 | 411 | 1.56 | ||||||||||||||||||||||||||||||
Municipal leases
|
769 | 7.09 | 982 | 9.98 | 906 | 9.38 | 1,123 | 9.24 | 1,238 | 9.54 | ||||||||||||||||||||||||||||||
Total loans
|
$ | 23,429 | 100.00 | % | $ | 32,073 | 100.00 | % | $ | 35,100 | 100.00 | % | $ | 50,140 | 100.00 | % | $ | 41,713 | 100.00 | % |
Years Ended June 30,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Balance at beginning of period:
|
$ | 32,073 | $ | 35,100 | $ | 50,140 | $ | 41,713 | $ | 24,996 | ||||||||||
Provision for (recovery of) loan losses
|
(6,300 | ) | 1,100 | 15,600 | 42,800 | 38,600 | ||||||||||||||
Charge-offs:
|
||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||
One- to four-family
|
3,269 | 1,855 | 9,355 | 3,572 | 8,450 | |||||||||||||||
Home equity
|
330 | 1,023 | 3,573 | 743 | 1,473 | |||||||||||||||
Construction and land/lots
|
804 | 770 | 3,690 | 2,510 | 3,275 | |||||||||||||||
Consumer
|
33 | 67 | 131 | 10 | 71 | |||||||||||||||
Total retail consumer loans
|
4,436 | 3,715 | 16,749 | 6,835 | 13,269 | |||||||||||||||
Commercial loans:
|
||||||||||||||||||||
Commercial real estate
|
413 | 1,624 | 3,083 | 6,736 | 4,978 | |||||||||||||||
Construction and development
|
377 | 1,568 | 12,770 | 21,629 | 3,574 | |||||||||||||||
Commercial and industrial
|
110 | 84 | 210 | 130 | 299 | |||||||||||||||
Municipal leases
|
- | - | - | - | - | |||||||||||||||
Total commercial loans
|
900 | 3,276 | 16,063 | 28,495 | 8,851 | |||||||||||||||
Total charge-offs
|
5,336 | 6,991 | 32,812 | 35,330 | 22,120 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||
One-to four-family
|
875 | 617 | 120 | 189 | 156 | |||||||||||||||
Home equity
|
153 | 95 | 59 | 31 | - | |||||||||||||||
Construction and land/lots
|
625 | 137 | 183 | 1 | - | |||||||||||||||
Consumer
|
10 | 5 | - | - | 27 | |||||||||||||||
Total retail consumer loans
|
1,663 | 854 | 362 | 221 | 183 | |||||||||||||||
Commercial loans:
|
||||||||||||||||||||
Commercial real estate
|
120 | 252 | 1,202 | 581 | 13 | |||||||||||||||
Construction and development
|
1,051 | 1,656 | 516 | 48 | - | |||||||||||||||
Commercial and industrial
|
159 | 102 | 92 | 107 | 41 | |||||||||||||||
Municipal leases
|
- | - | - | - | - | |||||||||||||||
Total commercial loans
|
1,330 | 2,010 | 1,810 | 736 | 54 | |||||||||||||||
Total recoveries
|
2,993 | 2,864 | 2,172 | 957 | 237 | |||||||||||||||
Net charge-offs
|
2,343 | 4,127 | 30,640 | 34,373 | 21,883 | |||||||||||||||
Balance at end of period
|
$ | 23,429 | $ | 32,073 | $ | 35,100 | $ | 50,140 | $ | 41,713 | ||||||||||
Net charge-offs during the period to
average loans outstanding during
the period
|
0.19 | % | 0.34 | % | 2.34 | % (1) | 2.59 | % | 1.71 | % | ||||||||||
Net charge-offs during the period to
average non-performing assets
|
3.40 | % | 4.99 | % | 38.73 | % (1) | 54.59 | % | 46.33 | % | ||||||||||
Allowance as a percentage of non-
performing assets
|
49.84 | % | 39.94 | % | 43.71 | % | 80.44 | % | 65.60 | % | ||||||||||
Allowance as a percentage of total
loans (end of period)
|
1.56 | % (2) | 2.75 | % | 2.85 | % | 3.77 | % | 3.23 | % |
At June 30,
|
||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||
Book
Value
|
Fair
Value
|
Book
Value
|
Fair
Value
|
Book
Value
|
Fair
Value
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||
U.S. government and federal agency
|
$ | 38,085 | $ | 38,093 | $ | 6,000 | $ | 6,002 | $ | 6,102 | $ | 6,102 | ||||||||||||
Mortgage-backed securities
|
111,430 | 111,411 | 18,794 | 18,748 | 24,958 | 25,233 | ||||||||||||||||||
Municipal bonds
|
15,951 | 16,220 | - | - | - | - | ||||||||||||||||||
Corporate bonds
|
2,912 | 3,025 | - | - | - | - | ||||||||||||||||||
Total securities available for sale
|
168,378 | 168,749 | 24,794 | 24,750 | 31,060 | 31,335 | ||||||||||||||||||
Federal Home Loan Bank stock
|
3,697 | 3,697 | 1,854 | 1,854 | 6,300 | 6,300 | ||||||||||||||||||
Total securities
|
$ | 172,075 | $ | 172,446 | $ | 26,648 | $ | 26,604 | $ | 37,360 | $ | 37,635 |
June 30, 2014
|
||||||||||||||||||||||||||||||||||||||||||||
1 year or less
|
Over 1 year to 5 years
|
Over 5 to 10 years
|
Over 10 years
|
Total Securities
|
||||||||||||||||||||||||||||||||||||||||
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
Fair
Value
|
||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||||||||||||||||||||||
U.S. government and
federal agency
|
$ | 8,021 | 0.26 | % | $ | 18,215 | 0.79 | % | $ | 10,918 | 1.96 | % | $ | 931 | 3.66 | % | $ | 38,085 | 1.09 | % | $ | 38,093 | ||||||||||||||||||||||
Mortgage-backed securities
|
- | - | % | 1,578 | 1.98 | % | 9,732 | 1.45 | % | 100,120 | 1.88 | % | 111,430 | 1.85 | % | 111,411 | ||||||||||||||||||||||||||||
Municipal bonds
|
534 | 0.81 | % | 2,358 | 1.70 | % | 8,921 | 3.31 | % | 4,138 | 3.18 | % | 15,951 | 2.94 | % | 16,220 | ||||||||||||||||||||||||||||
Corporate bonds
|
- | - | % | 428 | 2.65 | % | 2,484 | 3.35 | % | - | - | % | 2,912 | 3.25 | % | 3,025 | ||||||||||||||||||||||||||||
Total investment securities
|
$ | 8,555 | 0.29 | % | $ | 22,579 | 1.00 | % | $ | 32,055 | 2.27 | % | $ | 105,189 | 1.95 | % | $ | 168,378 | 1.80 | % | $ | 168,749 |
Years Ended June 30,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Beginning balance
|
$
|
1,154,750
|
$
|
1,466,175
|
$
|
1,264,585
|
||||||
Deposits acquired from business combination
|
466,463
|
-
|
-
|
|||||||||
Net deposits (withdrawals)
|
(43,430
|
)
|
(318,392
|
)
|
191,199
|
|||||||
Interest credited
|
5,264
|
6,967
|
10,391
|
|||||||||
Ending balance
|
$
|
1,583,047
|
$
|
1,154,750
|
$
|
1,466,175
|
||||||
Net increase (decrease)
|
$
|
428,297
|
$
|
(311,425
|
)
|
$
|
201,590
|
|||||
Percent increase (decrease)
|
37.09
|
%
|
(21.24
|
)%
|
15.94
|
%
|
At June 30,
|
|||||||||||||||||||||||||
2014
|
2013
|
2012
|
|||||||||||||||||||||||
Amount
|
Percent
of Total
|
Amount
|
Percent
of Total
|
Amount
|
Percent
of Total
|
||||||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||||||
Transactions and Savings Deposits:
|
|||||||||||||||||||||||||
Interest-bearing checking
|
$ | 295,386 | 18.66 | % | $ | 195,659 | 16.94 | % | $ | 173,574 | 11.84 |
%
|
|||||||||||||
Noninterest-bearing checking
|
123,285 | 7.79 | 60,828 | 5.27 | 57,109 | 3.90 | |||||||||||||||||||
Savings
|
175,974 | 11.12 | 82,158 | 7.11 | 347,669 | (1) | 23.71 | ||||||||||||||||||
Money market
|
354,247 | 22.38 | 275,718 | 23.88 | 257,865 | 17.59 | |||||||||||||||||||
Total non-certificates
|
$ | 948,892 | 59.94 | % | $ | 614,363 | 53.20 | % | $ | 836,217 | 57.03 |
%
|
|||||||||||||
Certificates:
|
|||||||||||||||||||||||||
0.00-0.99%
|
$ | 480,437 | 30.35 | % | $ | 351,093 | 30.40 | % | $ | 320,476 | 21.86 |
%
|
|||||||||||||
1.00-1.99%
|
107,730 | 6.81 | 126,914 | 10.99 | 205,728 | 14.03 | |||||||||||||||||||
2.00-2.99%
|
33,660 | 2.13 | 44,245 | 3.83 | 75,766 | 5.17 | |||||||||||||||||||
3.00-3.99%
|
7,900 | 0.50 | 10,815 | 0.94 | 13,688 | 0.93 | |||||||||||||||||||
4.00-4.99%
|
4,428 | 0.28 | 6,498 | 0.56 | 13,263 | 0.90 | |||||||||||||||||||
5.00% and over
|
- | - | 822 | 0.07 | 1,037 | 0.07 | |||||||||||||||||||
Total certificates
|
$ | 634,155 | 40.06 | % | $ | 540,387 | 46.80 | % | $ | 629,958 | 42.97 |
%
|
|||||||||||||
Total deposits
|
$ | 1,583,047 | 100.00 | % | $ | 1,154,750 | 100.00 | % | $ | 1,466,175 | 100.00 |
%
|
0.00-
0.99%
|
1.00-
1.99%
|
2.00-
2.99%
|
3.00-
3.99%
|
4.00-
4.99%
|
5.00%
or
greater
|
Total
|
Percent
of
Total
|
||||||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||||||||
Certificate accounts maturing
|
|||||||||||||||||||||||||||
in quarter ending:
|
|||||||||||||||||||||||||||
September 30, 2014
|
$
|
213,322
|
$
|
18,993
|
$
|
2,408
|
$
|
102
|
$
|
13
|
$
|
-
|
$
|
234,838
|
37.03
|
%
|
|||||||||||
December 31, 2014
|
68,813
|
16,026
|
2,775
|
91
|
-
|
-
|
87,705
|
13.83
|
|||||||||||||||||||
March 31, 2015
|
57,321
|
10,826
|
2,383
|
-
|
-
|
-
|
70,530
|
11.12
|
|||||||||||||||||||
June 30, 2015
|
49,413
|
4,902
|
3,688
|
-
|
-
|
-
|
58,003
|
9.15
|
|||||||||||||||||||
September 30, 2015
|
21,411
|
6,578
|
5,314
|
578
|
-
|
-
|
33,881
|
5.34
|
|||||||||||||||||||
December 31, 2015
|
16,566
|
2,419
|
10,057
|
-
|
-
|
-
|
29,042
|
4.58
|
|||||||||||||||||||
March 31, 2016
|
9,099
|
5,731
|
3,419
|
-
|
-
|
-
|
18,249
|
2.88
|
|||||||||||||||||||
June 30, 2016
|
9,084
|
1,742
|
2,920
|
-
|
-
|
-
|
13,746
|
2.17
|
|||||||||||||||||||
September 30, 2016
|
6,251
|
6,896
|
694
|
3,995
|
-
|
-
|
17,836
|
2.81
|
|||||||||||||||||||
December 31, 2016
|
6,676
|
6,687
|
2
|
-
|
-
|
-
|
13,365
|
2.11
|
|||||||||||||||||||
March 31, 2017
|
6,244
|
4,462
|
-
|
-
|
-
|
-
|
10,706
|
1.69
|
|||||||||||||||||||
June 30, 2017
|
6,997
|
4,005
|
-
|
-
|
-
|
-
|
11,002
|
1.73
|
|||||||||||||||||||
Thereafter
|
9,240
|
18,462
|
-
|
3,135
|
4,415
|
-
|
35,252
|
5.56
|
|||||||||||||||||||
Total
|
$
|
480,437
|
$
|
107,729
|
$
|
33,660
|
$
|
7,901
|
$
|
4,428
|
$
|
-
|
$
|
634,155
|
100.00
|
%
|
|||||||||||
Percent of total
|
75.76
|
%
|
16.99
|
%
|
5.31
|
%
|
1.25
|
%
|
0.70
|
%
|
-
|
%
|
100.00
|
%
|
|||||||||||||
Maturity
|
||||||||||||||||||||
3 Months
or Less
|
Over
3 to 6
Months
|
Over
6 to 12
Months
|
Over
12 Months
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Certificates of deposit less than $100,000
|
$ | 107,308 | $ | 36,457 | $ | 47,822 | $ | 91,920 | $ | 283,507 | ||||||||||
Certificates of deposit of $100,000 or more
|
109,519 | 44,565 | 67,279 | 83,797 | 305,160 | |||||||||||||||
Public funds
(1)
|
18,012 | 6,684 | 13,432 | 7,360 | 45,488 | |||||||||||||||
Total certificates of deposit
|
$ | 234,839 | $ | 87,706 | $ | 128,533 | $ | 183,077 | $ | 634,155 |
Years ended June 30,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Maximum balance:
|
||||||||||||
Federal Home Loan Bank advances
|
$ | 55,939 | $ | 15,080 | $ | 111,082 | ||||||
Securities sold under agreements to repurchase
|
- | 8,475 | 8,190 | |||||||||
Federal Reserve Bank
|
- | - | 5,000 | |||||||||
Average balances:
|
||||||||||||
Federal Home Loan Bank advances
|
$ | 6,109 | $ | 5,378 | $ | 85,521 | ||||||
Securities sold under agreements to repurchase
|
- | 5,015 | 6,772 | |||||||||
Federal Reserve Bank
|
- | - | 13 | |||||||||
Weighted average interest rate:
|
||||||||||||
Federal Home Loan Bank advances
|
0.20 | % | 4.93 | % | 1.77 | % | ||||||
Securities sold under agreements to repurchase
|
- | 0.24 | 0.35 | |||||||||
Federal Reserve Bank
|
- | - | 0.75 |
At June 30,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Balance outstanding at end of period:
|
||||||||||||
Federal Home Loan Bank advances
|
$ | 50,000 | $ | - | $ | 15,080 | ||||||
Securities sold under agreements to repurchase
|
- | - | 7,185 | |||||||||
Federal Reserve Bank
|
- | - | - | |||||||||
Weighted average interest rate of:
|
||||||||||||
Federal Home Loan Bank advances
|
0.20 | % | - | % | 4.94 | % | ||||||
Securities sold under agreements to repurchase
|
- | - | 0.24 | |||||||||
Federal Reserve Bank
|
- | - | - |
·
|
Dodd-Frank Act established the CFPB and empowered it to exercise broad regulatory, supervisory and enforcement authority with respect to both new and existing consumer financial protection laws. HomeTrust Bank is subject to consumer protection regulations issued by the CFPB, but as a smaller financial institution, HomeTrust Bank is generally subject to OCC supervision and enforcement with respect to its compliance with consumer financial protection laws and CFPB regulations.
|
·
|
Bank holding companies and savings and loan holding companies are required to serve as a source of strength for their banking subsidiaries.
|
·
|
The federal banking agencies must promulgate new rules on regulatory capital, for both depository institutions and their holding companies. These are described below.
|
·
|
The prohibition on payment of interest on demand deposits was repealed.
|
·
|
State consumer financial protection laws are preempted only if they would have a discriminatory effect on a federal savings association or are specifically preempted by any federal law. The OCC must make a preemption determination with respect to a state consumer financial protection law on a case-by-case basis with respect to a particular state law or other state law with substantively equivalent terms.
|
·
|
Deposit insurance was permanently increased to $250,000.
|
·
|
The deposit insurance assessment base for FDIC insurance became the depository institution's total average assets minus the sum of its average tangible equity during the assessment period, rather than being based on the level of deposits.
|
·
|
The minimum reserve ratio of the FDIC deposit insurance fund increased to 1.35% of estimated annual insured deposits or assessment base; however, the FDIC is directed to "offset the effect" of the increased reserve ratio for insured depository institutions with total consolidated assets of less than $10.0 billion.
|
Name
|
Age
(1)
|
Position
|
|||
Dana L. Stonestreet
|
60 |
Chairman, President and Chief Executive Officer
|
|||
Tony J. VunCannon
|
49 |
Senior Vice President, Chief Financial Officer and Treasurer
|
|||
Howard L. Sellinger
|
61 |
Senior Vice President and Chief Information Officer
|
|||
C. Hunter Westbrook
|
51 |
Senior Vice President and Chief Banking Officer
|
|||
Teresa White
|
57 |
Senior Vice President, Chief Administration Officer and Corporate Secretary
|
|||
Keith Houghton
|
52 |
Senior Vice President and Chief Credit Officer
|
|||
(1)
|
As of June 30, 2014.
|
|
·
|
loan delinquencies may increase;
|
|
·
|
problem assets and foreclosures may increase;
|
|
·
|
demand for our products and services may decline;
|
|
·
|
collateral for our loans may decline in value, in turn reducing a customer’s borrowing power and reducing the value of collateral securing our loans; and
|
|
·
|
the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us.
|
|
·
|
cash flow of the borrower and/or the project being financed;
|
|
·
|
the changes and uncertainties as to the future value of the collateral, in the case of a collateralized loan;
|
|
·
|
the duration of the loan;
|
|
·
|
the character and creditworthiness of a particular borrower; and
|
|
·
|
changes in economic and industry conditions.
|
|
·
|
our general reserve, based on our historical default and loss experience, certain macroeconomic factors, and management’s expectations of future events;
|
|
·
|
our specific reserve, based on our evaluation of non-accruing loans and their underlying collateral; and
|
|
·
|
an unallocated reserve to provide for other credit losses inherent in our portfolio that may not have been contemplated in the other loss factors.
|
|
·
|
we record interest income only on a cash basis for nonaccrual loans and any nonperforming investment securities; and do not record interest income for REO;
|
|
·
|
we must provide for probable loan losses through a current period charge to the provision for loan losses;
|
|
·
|
non-interest expense increases when we write down the value of properties in our REO portfolio to reflect changing market values or recognize other-than-temporary impairment (“OTTI”) on nonperforming investment securities;
|
|
·
|
there are legal fees associated with the resolution of problem assets, as well as, carrying costs, such as taxes, insurance, and maintenance fees related to our REO; and
|
|
·
|
the resolution of nonperforming assets requires the active involvement of management, which can distract them from more profitable activity.
|
|
·
|
We may be exposed to potential asset quality issues or unknown or contingent liabilities of the banks, businesses, assets and liabilities we acquire. If these issues or liabilities exceed our estimates, our results of operations and financial condition may be materially negatively affected;
|
|
·
|
Prices at which future acquisitions can be made may not be acceptable to us;
|
|
·
|
Our growth initiatives may require us to recruit experienced personnel to assist in such initiatives. The failure to identify and retain such personnel would place significant limitations on our ability to execute our growth strategy;
|
|
·
|
Our strategic efforts may divert resources or management’s attention from ongoing business operations and may subject us to additional regulatory scrutiny;
|
|
·
|
The acquisition of other entities generally requires integration of systems, procedures and personnel of the acquired entity into our company to make the transaction economically successful. This integration process is complicated and time consuming and can also be disruptive to the customers of the acquired business. If the integration process is not conducted successfully and with minimal effect on the acquired business and its customers, we may not realize the anticipated economic benefits of particular acquisitions within the expected time frame, and we may lose customers or employees of the acquired business. We may also experience greater than anticipated customer losses even if the integration process is successful;
|
|
·
|
To finance a future acquisition, we may borrow funds, thereby increasing our leverage and diminishing our liquidity, or raise additional capital, which could dilute the interests of our existing shareholders;
|
|
·
|
We have completed five mergers during the past five fiscal years that enhanced our rate of growth. We may not be able to continue to sustain our past rate of growth or to grow at all in the future; and
|
|
·
|
We expect our net income will increase following our acquisitions, however, we also expect our general and administrative expenses and consequently our efficiency rates will also increase. Ultimately, we would expect our efficiency ratio to improve; however, if we are not successful in our integration process, this may not occur, and our acquisitions or branching activities may not be accretive to earnings in the short or long-term.
|
|
·
|
the ability to develop, maintain and build upon long-term customer relationships based on top-quality service, high ethical standards and safe, sound assets;
|
|
·
|
the ability to expand our market position;
|
|
·
|
the scope, relevance and pricing of products and services offered to meet customer needs and demands;
|
|
·
|
the rate at which we introduce new products and services relative to our competitors;
|
|
·
|
customer satisfaction with our level of service; and
|
|
·
|
industry and general economic trends.
|
Year Ended June 30, 2014
|
High
|
Low
|
Cash Dividend Declared
|
|||||||||
First quarter
|
$
|
17.00
|
$
|
16.00
|
$
|
--
|
||||||
Second quarter
|
16.55
|
15.89
|
--
|
|||||||||
Third quarter
|
16.11
|
15.26
|
--
|
|||||||||
Fourth quarter
|
16.00
|
14.87
|
--
|
Total Number of
|
Maximum Number of
|
|||||||||||||||
Shares Purchased as
|
Shares that May
|
|||||||||||||||
Total Number
|
Average
|
Part of Publicly
|
Yet Be Purchased
|
|||||||||||||
of Shares
|
Price Paid per
|
Announced Plans or
|
Under the Plans or
|
|||||||||||||
Period
|
Purchased
|
Share
|
Programs
|
Programs
|
||||||||||||
April 1 to April 30, 2014
|
457,863
|
$
|
15.88
|
457,863
|
315,285
|
|||||||||||
May 1 to May 30, 2013
|
-
|
-
|
-
|
-
|
||||||||||||
June 1 to June 30, 2013
|
130,601
|
15.63
|
130,601
|
184,684
|
||||||||||||
1
|
||||||||||||||||
Total
|
588,464
|
$
|
15.82
|
588,464
|
184,684
|
|||||||||||
At June 30,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Selected Financial Condition Data:
|
||||||||||||||||||||
Total assets
|
$ | 2,074,454 | $ | 1,583,323 | $ | 1,720,056 | $ | 637,643 | $ | 1,641,145 | ||||||||||
Loans receivable, net
(1)
|
1,473,099 | 1,132,110 | 1,193,945 | 1,276,377 | 1,243,610 | |||||||||||||||
Allowance for loan losses
|
23,429 | 32,073 | 35,100 | 50,140 | 41,713 | |||||||||||||||
Certificates of deposit in other banks
|
163,780 | 136,617 | 108,010 | 118,846 | 99,140 | |||||||||||||||
Securities available for sale, at fair value
|
168,749 | 24,750 | 31,335 | 59,016 | 36,483 | |||||||||||||||
Federal Home Loan Bank stock
|
3,697 | 1,854 | 6,300 | 9,630 | 10,790 | |||||||||||||||
Deposits
|
1,583,047 | 1,154,750 | 1,466,175 | 1,264,585 | 1,289,549 | |||||||||||||||
Other borrowings
|
50,000 | - | 22,265 | 145,278 | 122,199 | |||||||||||||||
Stockholders’ equity
|
377,151 | 367,515 | 172,485 | 167,769 | 174,815 |
Years Ended June 30,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Selected Operations Data:
|
||||||||||||||||||||
Total interest and dividend income
|
$ | 60,281 | $ | 60,389 | $ | 67,491 | $ | 72,087 | $ | 71,300 | ||||||||||
Total interest expense
|
5,432 | 7,255 | 11,778 | 20,529 | 25,617 | |||||||||||||||
Net interest income
|
54,849 | 53,134 | 55,713 | 51,558 | 45,683 | |||||||||||||||
Provision for (recovery of ) loan losses
|
(6,300 | ) | 1,100 | 15,600 | 42,800 | 38,600 | ||||||||||||||
Net interest income after provision for
|
||||||||||||||||||||
loan losses
|
61,149 | 52,034 | 40,113 | 8,758 | 7,083 | |||||||||||||||
Fees and service charges
|
2,783 | 2,589 | 2,679 | 2,929 | 2,986 | |||||||||||||||
Mortgage banking income and fees
|
3,218 | 5,107 | 3,846 | 3,211 | 2,692 | |||||||||||||||
Gain on sale of securities
|
10 | - | - | 430 | 191 | |||||||||||||||
Gain from business combination
|
- | - | - | 5,844 | 17,391 | |||||||||||||||
Gain on sale of fixed assets
|
- | - | 1,503 | - | - | |||||||||||||||
Other non-interest income
|
2,727 | 2,691 | 2,400 | 4,382 | 1,292 | |||||||||||||||
Total non-interest income
|
8,738 | 10,387 | 10,428 | 16,796 | 24,552 | |||||||||||||||
Total non-interest expense
|
55,032 | 51,393 | 46,661 | 53,554 | 42,171 | |||||||||||||||
Income (loss) before provision
|
||||||||||||||||||||
(benefit) for income taxes
|
14,855 | 11,028 | 3,880 | (28,000 | ) | (10,536 | ) | |||||||||||||
Income tax expense (benefit)
|
4,513 | 1,975 | (647 | ) | (13,263 | ) | (17,577 | ) | ||||||||||||
Net income (loss)
|
$ | 10,342 | $ | 9,053 | $ | 4,527 | $ | (14,737 | ) | $ | 7,041 | |||||||||
Per Share Data:
|
||||||||||||||||||||
Net income per common share:
|
||||||||||||||||||||
Basic
|
$ | 0.54 | $ | 0.45 | n/a | n/a | n/a | |||||||||||||
Diluted
|
$ | 0.54 | $ | 0.45 | n/a | n/a | n/a |
At or For the
|
||||||||||||||||||||
Years Ended June 30,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Selected Financial Ratios and Other Data:
|
||||||||||||||||||||
Performance ratios:
|
||||||||||||||||||||
Return on assets (ratio of net income to average total
|
||||||||||||||||||||
assets)
|
0.62 | % | 0.56 | % | 0.29 | % | (0.88 | ) % | 0.46 | % | ||||||||||
Return on equity (ratio of net income to average
|
||||||||||||||||||||
equity)
|
2.86 | 2.48 | 2.67 | (8.15 | ) | 4.50 | ||||||||||||||
Tax equivalent yield on earning assets
(2)
|
4.15 | 4.30 | 4.82 | 4.83 | 5.06 | |||||||||||||||
Rate paid on interest-bearing liabilities
|
0.46 | 0.65 | 0.91 | 1.48 | 1.99 | |||||||||||||||
Tax equivalent average interest rate spread
(2)
|
3.69 | 3.65 | 3.91 | 3.35 | 3.07 | |||||||||||||||
Tax equivalent net interest margin
(2)(3)
|
3.79 | 3.81 | 4.02 | 3.52 | 3.33 | |||||||||||||||
Operating expense to average total assets
|
3.29 | 3.21 | 2.95 | 3.21 | 2.75 | |||||||||||||||
Average interest-earning assets to average interest-bearing
|
||||||||||||||||||||
liabilities
|
130.20 | 132.54 | 113.61 | 113.01 | 115.06 | |||||||||||||||
Efficiency ratio
(4)
|
75.37 | 67.63 | 56.77 | 61.94 | 55.59 | |||||||||||||||
Asset quality ratios:
|
||||||||||||||||||||
Non-performing assets to total assets
(5)
|
3.02 | % | 5.07 | % | 4.67 | % | 3.81 | % | 3.87 | % | ||||||||||
Non-accruing loans to total loans
(5)
|
3.14 | 5.88 | 5.21 | 3.64 | 3.59 | |||||||||||||||
Total classified assets to total assets
|
4.56 | 7.43 | 7.75 | 9.83 | 9.20 | |||||||||||||||
Allowance for loan losses to non-accruing loans
(5)(6)
|
49.84 | 46.78 | 54.69 | 103.43 | 90.09 | |||||||||||||||
Allowance for loan losses to total loans
|
1.56 | 2.75 | 2.85 | 3.77 | 3.23 | |||||||||||||||
Net charge-offs to average loans
|
0.19 | 0.34 | 2.34 | 2.59 | 1.71 | |||||||||||||||
Capital ratios:
|
||||||||||||||||||||
Equity to total assets at end of period
(7)
|
18.18 | % | 23.21 | % | 10.03 | % | 10.24 | % | 10.65 | % | ||||||||||
Average equity to average assets
|
21.62 | 23.09 | 10.71 | 10.82 | 10.21 | |||||||||||||||
Dividend payout to common shareholders
|
- | - | n/a | n/a | n/a |
|
______________________
|
(1)
|
Net of allowances for loan losses, loans in process and deferred loan fees.
|
(2)
|
The weighted average rate for municipal leases is adjusted for a 34% federal tax rate since the interest from these leases is tax exempt.
|
(3)
|
Net interest income divided by average interest earning assets.
|
(4)
|
As presented, this is a non-GAAP (Generally Accepted Accounting Principles) measure calculated by dividing total non-interest expense, net of FHLB advance prepayment penalties, REO-related expenses and merger-related expenses, by the sum of net interest income, total non-interest income and the tax equivalent adjustment, net of realized gain/loss on securities. The Company believes the efficiency ratio as presented is useful for both investors and management to understand the effects of certain non-interest items and provides an alternative view of the Company's performance over time and in comparison to the Company's competitors. This non-GAAP financial measure should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies. Set forth below is a reconciliation to GAAP of the non-GAAP efficiency ratio shown in the table:
|
At or for the years ended June 30,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Non-interest expense
|
$ | 55,032 | $ | 51,393 | $ | 46,661 | $ | 53,554 | $ | 42,171 | ||||||||||
Less FHLB advance prepayment expense
|
- | 3,069 | 2,111 | 3,988 | - | |||||||||||||||
Less REO-related expenses
|
2,089 | 3,086 | 4,991 | 5,306 | 1,231 | |||||||||||||||
Less merger-related expenses
|
2,708 | - | - | - | - | |||||||||||||||
Non-interest expense – as adjusted
|
50,235 | 45,238 | 39,559 | 44,260 | 40,940 | |||||||||||||||
Net interest income
|
54,849 | 53,134 | 55,713 | 51,558 | 45,683 | |||||||||||||||
Plus non-interest income
|
8,738 | 10,387 | 10,428 | 16,796 | 24,552 | |||||||||||||||
Plus tax equivalent adjustment
|
3,076 | 3,371 | 3,539 | 3,527 | 3,598 | |||||||||||||||
Less realized gain/loss on securities
|
10 | - | - | 430 | 191 | |||||||||||||||
Net interest income plus non-interest income – as adjusted
|
66,673 | 66,892 | 69,680 | 71,451 | 73,642 | |||||||||||||||
Efficiency ratio
|
75.37 | % | 67.63 | % | 56.77 | % | 61.94 | % | 55.59 | % | ||||||||||
Efficiency ratio (without adjustments)
|
86.55 | % | 80.91 | % | 70.55 | % | 78.35 | % | 60.04 | % |
(5)
|
Non-performing assets include non-accruing loans including certain restructured loans and real estate owned. In the year ended June 30, 2012, $25.7 million of loans were reclassified from impaired loans still accruing interest to non-accruing loans pursuant to regulatory guidance. At June 30, 2014, there were $13.9 million of restructured loans included in non-accruing loans and $23.9 million, or 50.9%, of non-accruing loans were current on their loan payments.
|
(6)
|
The decline in the allowance for loan losses during the year ended June 30, 2012 occurred primarily as a result of the charge-off of specific reserves, totaling $16.7 million, in accordance with regulatory guidance. The ratio of allowance for loan losses to non-accruing loans was reduced during this period by the charge-off, as well as by the reclassification of impaired loans discussed in note (5) above.
|
(7)
|
Does not include proceeds from the Conversion consummated on July 10, 2012 for years ended prior to June 30, 2013.
|
Years Ended June 30,
|
||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||||||||
Average
Balance
Outstanding
|
Interest
Earned/
Paid
(2)
|
Yield/
Rate
(2)
|
Average
Balance
Outstanding
|
Interest
Earned/
Paid
(2)
|
Yield/
Rate
(2)
|
Average
Balance
Outstanding
|
Interest
Earned/
Paid
(2)
|
Yield/
Rate
(2)
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||||
Loans receivable
(1)
|
$
|
1,213,271
|
|
$
|
59,911
|
|
|
4.94
|
%
|
$
|
1,210,153
|
$
|
61,775
|
5.10
|
%
|
|
$
|
1,293,747
|
$
|
69,195
|
5.35
|
%
|
||||||||
Deposits in other financial
institutions
|
211,254
|
1,749
|
0.83
|
%
|
221,943
|
1,509
|
0.68
|
%
|
133,905
|
1,331
|
0.99
|
%
|
||||||||||||||||||
Investment securities
|
89,781
|
1,578
|
1.76
|
%
|
28,862
|
324
|
1.12
|
%
|
37,905
|
413
|
1.09
|
%
|
||||||||||||||||||
Other
|
13,730
|
119
|
0.87
|
%
|
20,769
|
152
|
0.73
|
%
|
8,003
|
91
|
1.14
|
%
|
||||||||||||||||||
Total interest-earning assets
|
1,528,036
|
63,357
|
4.15
|
%
|
1,481,727
|
63,760
|
4.30
|
%
|
1,473,560
|
71,030
|
4.82
|
%
|
||||||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|||||||||||||||||||||||||||
Interest-bearing checking accounts
|
220,427
|
275
|
0.12
|
%
|
181,849
|
212
|
0.12
|
%
|
161,780
|
320
|
0.20
|
%
|
||||||||||||||||||
Money market accounts
|
306,747
|
788
|
0.26
|
%
|
263,826
|
895
|
0.34
|
%
|
255,513
|
1,397
|
0.55
|
%
|
||||||||||||||||||
Savings accounts
|
92,374
|
156
|
0.17
|
%
|
90,545
|
199
|
0.22
|
%
|
84,106
|
314
|
0.37
|
%
|
||||||||||||||||||
Certificate accounts
|
547,929
|
4,198
|
0.77
|
%
|
571,324
|
5,669
|
0.99
|
%
|
705,537
|
8,213
|
1.16
|
%
|
||||||||||||||||||
Borrowings
|
6,109
|
15
|
0.25
|
%
|
10,434
|
280
|
2.68
|
%
|
90,060
|
1,534
|
1.70
|
%
|
||||||||||||||||||
Total interest-bearing liabilities
|
1,173,586
|
5,432
|
0.46
|
%
|
1,117,978
|
7,255
|
0.65
|
%
|
1,296,996
|
11,778
|
0.91
|
%
|
||||||||||||||||||
Tax-equivalent net interest income
|
$
|
57,925
|
$
|
56,505
|
$
|
59,252
|
||||||||||||||||||||||||
Tax equivalent interest rate spread
|
3.69
|
%
|
3.65
|
%
|
3.91
|
%
|
||||||||||||||||||||||||
Net earning assets
|
$
|
354,450
|
$
|
363,749
|
$
|
176,564
|
||||||||||||||||||||||||
Tax equivalent net interest margin
|
3.79
|
%
|
3.81
|
%
|
4.02
|
%
|
||||||||||||||||||||||||
Average interest-earning assets to
average interest-bearing liabilities
|
130.20
|
%
|
132.54
|
%
|
113.61
|
%
|
||||||||||||||||||||||||
Year Ended
June 30,
|
Years Ended
June 30,
|
|||||||||||||||||||||||
2014 vs. 2013
|
2013 vs. 2012
|
|||||||||||||||||||||||
Increase/
(decrease)
due to
|
Total
increase/
(decrease)
|
Increase/
(decrease)
due to
|
Total
increase/
decrease
|
|||||||||||||||||||||
Volume
|
Rate
|
Volume
|
Rate
|
|||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable
|
$ | 159 | $ | (2,023 | ) | $ | (1,864 | ) | $ | (4,471 | ) | $ | (2,949 | ) | $ | (7,420 | ) | |||||||
Deposits in other financial institutions
|
(73 | ) | 313 | 240 | 875 | (697 | ) | 178 | ||||||||||||||||
Investment securities
|
684 | 570 | 1,254 | (99 | ) | 10 | (89 | ) | ||||||||||||||||
Other
|
(52 | ) | 19 | (33 | ) | 145 | (84 | ) | 61 | |||||||||||||||
Total interest-earning assets
|
$ | 718 | $ | (1,121 | ) | $ | (403 | ) | $ | (3,550 | ) | $ | (3,720 | ) | $ | (7,270 | ) | |||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest-bearing checking accounts
|
$ | 45 | $ | 18 | $ | 63 | $ | 40 | $ | (148 | ) | $ | (108 | ) | ||||||||||
Money market accounts
|
146 | (253 | ) | (107 | ) | 45 | (547 | ) | (502 | ) | ||||||||||||||
Savings accounts
|
4 | (47 | ) | (43 | ) | 24 | (139 | ) | (115 | ) | ||||||||||||||
Certificate accounts
|
(232 | ) | (1,239 | ) | (1,471 | ) | (1,562 | ) | (982 | ) | (2,544 | ) | ||||||||||||
Borrowings
|
(116 | ) | (149 | ) | (265 | ) | (1,356 | ) | 102 | (1,254 | ) | |||||||||||||
Total interest-bearing liabilities
|
$ | (153 | ) | $ | (1,670 | ) | $ | (1,823 | ) | $ | (2,809 | ) | $ | (1,714 | ) | $ | (4,523 | ) | ||||||
|
||||||||||||||||||||||||
Net increase (decrease) in tax equivalent
interest income
|
$ | 1,420 | $ | (2,747 | ) |
|
·
|
a pre-tax loss of $28.0 million for the year ended June 30, 2011. This loss was due to a $42.8 million provision for loan losses, as well as, a $3.8 million FHLB prepayment penalty and a $4.5 million check kiting loss; and
|
|
·
|
a high level of net chargeoffs, totaling $30.6 million and $34.4 million for the years ended June 30, 2012 and 2011, respectively. Net charge-offs decreased to $2.3 million and $4.1 million for the fiscal years ended June 30, 2014 and 2013, respectively.
|
|
·
|
cumulative pre-tax income of $29.8 million for the three years ended June 30, 2014;
|
|
·
|
our long sustained history prior to 2010 (more than twenty consecutive years) of generating taxable income and realizing the income tax benefits of our deferred tax assets and income tax credits. This history provided evidence, as supported by recent profitability, that we would be able to return to a profitability level that will allow full utilization of deferred tax assets;
|
|
·
|
no prior history of generating loss carry forwards or of expiration of loss carry forwards. Taxable losses generated in fiscal 2010 were carried back to prior years, to realize approximately $4.3 million of the deferred tax asset at June 30, 2010;
|
|
·
|
HomeTrust Bank was “well capitalized” under regulatory definitions, allowing management sufficient resources to continue to manage through the current economic conditions and return to profitability;
|
|
·
|
The Company raised $208.2 million of additional capital in its July 2012 Conversion.
|
|
·
|
based on certain improving credit quality indicators, the credit quality issues that gave rise to the net operating loss carry forward and deferred tax asset related to the loan loss allowance were believed to a large extent limited to fiscal years 2010 and 2011. The recovery for loan losses was $6.3 million for fiscal year 2014. Specifically, we reduced our higher risk commercial construction and development loan portfolio by 68.4% from $179.3 million at June 30, 2008 to $56.5 million at June 30, 2014. This portfolio accounted for 39% of all net loan charge-offs over the past six years. Further, the consumer construction and land/lot loan portfolio decreased by 34.9% from $90.9 million at June 30, 2008 to $59.2 million at June 30, 2014. This portfolio accounted for 11% of all net loan charge-offs over the
|
|
·
|
the deferred compensation deferred tax asset will reverse as those plans are paid, which generally will be at least over twenty years or more based on the retirement dates of the individuals in the plans. The deferred tax asset related to the net operating loss carry-forwards has a 20 year life, which will allow a significant amount of time for us to utilize the asset. The other significant deferred tax asset relates to the allowance for loan losses. This asset is expected to reverse over the next five years as we realize these losses through charge-offs or recoveries of the loan losses; and
|
|
·
|
our projections for future earnings do not assume significant changes in margin, levels of non-interest income, or significant reductions of non-interest expense.
|
|
·
|
the tax-free municipal lease portfolio could be sold to generate a taxable gain as well as provide over $100 million to reinvest into taxable investments; in doing so, we could convert substantial tax-free income into taxable income.
|
June 30, 2014
|
||||||||||||||||||
Change in Interest Rates in
|
Present Value Equity
|
PVE
|
||||||||||||||||
Basis Points
|
Amount
|
$ Change
|
% Change
|
Ratio
|
||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||
+400 | $ | 430,566 | $ | (72,118 | ) | (14 | )% | 24 | % | |||||||||
+300 | 446,496 | (56,188 | ) | (11 | ) | 24 | ||||||||||||
+200 | 462,920 | (39,764 | ) | (8 | ) | 24 | ||||||||||||
+100 | 481,619 | (21,065 | ) | (4 | ) | 24 | ||||||||||||
Base
|
502,684 | - | - | 25 | ||||||||||||||
-100 | 503,887 | 1,203 | 0 | 24 |
Regulatory Requirements
|
||||||||||||||||||||||||
Minimum for Capital
|
Minimum to Be
|
|||||||||||||||||||||||
Actual
|
Adequacy Purposes
|
Well Capitalized
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As of June 30, 2014:
|
||||||||||||||||||||||||
Tier I Capital (to Total Adjusted Assets)
|
$ | 264,041 | 13.37 | % | $ | 78,985 | 4.00 | % | $ | 98,719 | 5.00 | % | ||||||||||||
Tier I Capital (to Risk-weighted Assets)
|
$ | 264,041 | 18.29 | % | $ | - | - | % | $ | 86,625 | 6.00 | % | ||||||||||||
Total Risk-based Capital (to Risk-weighted Assets)
|
$ | 282,160 | 19.54 | % | $ | 115,501 | 8.00 | % | $ | 144,376 | 10.00 | % | ||||||||||||
As of June 30, 2013:
|
||||||||||||||||||||||||
Tier I Capital (to Total Adjusted Assets)
|
$ | 228,454 | 15.25 | % | $ | 59,920 | 4.00 | % | $ | 74,901 | 5.00 | % | ||||||||||||
Tier I Capital (to Risk-weighted Assets)
|
$ | 228,454 | 21.89 | % | $ | - | - | % | $ | 62,620 | 6.00 | % | ||||||||||||
Total Risk-based Capital (to Risk-weighted Assets)
|
$ | 241,736 | 23.16 | % | $ | 83,493 | 8.00 | % | $ | 104,367 | 10.00 | % |
|
Page
|
Report of Independent Registered Public Accounting Firm
|
83
|
Consolidated Balance Sheets, June 30, 2014 and 2013
|
84
|
Consolidated Statements of Income for the Years Ended June 30, 2014, 2013 and 2012
|
85
|
Consolidated Statements of Comprehensive Income for the Years Ended June 30, 2014, 2013 and 2012
|
86
|
Consolidated Statements of Changes in Stockholders’ Equity for the Years Ended June 30, 2014, 2013 and 2012
|
87
|
Consolidated Statements of Cash Flows for the Years Ended June 30, 2014, 2013 and 2012
|
88
|
Notes to Consolidated Financial Statements for the Years Ended June 30, 2014, 2013 and 2012
|
90
|
June 30,
|
||||||||
2014
|
2013
|
|||||||
Assets
|
||||||||
Cash
|
$ | 19,801 | $ | 13,251 | ||||
Interest-bearing deposits
|
26,029 | 112,462 | ||||||
Cash and cash equivalents
|
45,830 | 125,713 | ||||||
Certificates of deposit in other banks
|
163,780 | 136,617 | ||||||
Securities available for sale, at fair value
|
168,749 | 24,750 | ||||||
Loans held for sale
|
2,537 | 10,770 | ||||||
Total loans, net of deferred loan fees and discount
|
1,496,528 | 1,164,183 | ||||||
Allowance for loan losses
|
(23,429 | ) | (32,073 | ) | ||||
Net loans
|
1,473,099 | 1,132,110 | ||||||
Premises and equipment, net
|
47,411 | 22,400 | ||||||
Federal Home Loan Bank (FHLB) stock, at cost
|
3,697 | 1,854 | ||||||
Accrued interest receivable
|
6,787 | 5,549 | ||||||
Real estate owned (REO)
|
15,725 | 11,739 | ||||||
Deferred income taxes
|
58,381 | 47,428 | ||||||
Bank owned life insurance
|
71,285 | 62,242 | ||||||
Goodwill
|
9,815 | - | ||||||
Core deposit intangibles
|
4,014 | 120 | ||||||
Other assets
|
3,344 | 2,031 | ||||||
Total Assets
|
$ | 2,074,454 | $ | 1,583,323 | ||||
Liabilities and Stockholders’ Equity
|
||||||||
Liabilities
|
||||||||
Deposits
|
$ | 1,583,047 | $ | 1,154,750 | ||||
Other borrowings
|
50,000 | - | ||||||
Capital lease obligations
|
1,998 | 2,016 | ||||||
Other liabilities
|
62,258 | 59,042 | ||||||
Total liabilities
|
1,697,303 | 1,215,808 | ||||||
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, 20,632,008
|
||||||||
shares issued and outstanding at June 30, 2014; 20,824,900 at June 30, 2013
|
207 | 208 | ||||||
Additional paid in capital
|
225,889 | 227,397 | ||||||
Retained earnings
|
160,332 | 149,990 | ||||||
Unearned Employee Stock Ownership Plan (ESOP) shares
|
(9,522 | ) | (10,051 | ) | ||||
Accumulated other comprehensive income (loss)
|
245 | (29 | ) | |||||
Total stockholders’ equity
|
377,151 | 367,515 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 2,074,454 | $ | 1,583,323 |
June 30,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Interest and Dividend Income
|
||||||||||||
Loans
|
$ | 56,835 | $ | 58,404 | $ | 65,656 | ||||||
Securities available for sale
|
1,578 | 324 | 413 | |||||||||
Certificates of deposit and other interest-bearing
deposits
|
1,789 | 1,578 | 1,331 | |||||||||
FHLB stock
|
79 | 83 | 91 | |||||||||
Total interest and dividend income
|
60,281 | 60,389 | 67,491 | |||||||||
Interest Expense
|
||||||||||||
Deposits
|
5,417 | 6,975 | 10,244 | |||||||||
Other borrowings
|
15 | 280 | 1,534 | |||||||||
Total interest expense
|
5,432 | 7,255 | 11,778 | |||||||||
Net Interest Income
|
54,849 | 53,134 | 55,713 | |||||||||
Provision for (Recovery of) Loan Losses
|
(6,300 | ) | 1,100 | 15,600 | ||||||||
Net Interest Income after Provision for Loan Losses
|
61,149 | 52,034 | 40,113 | |||||||||
Noninterest Income
|
||||||||||||
Service charges on deposit accounts
|
2,783 | 2,589 | 2,679 | |||||||||
Mortgage banking income and fees
|
3,218 | 5,107 | 3,846 | |||||||||
Gain from sales of securities available for sale
|
10 | - | - | |||||||||
Gain on sale of premises and equipment
|
- | - | 1,503 | |||||||||
Other, net
|
2,727 | 2,691 | 2,400 | |||||||||
Total noninterest income
|
8,738 | 10,387 | 10,428 | |||||||||
Noninterest Expense
|
||||||||||||
Salaries and employee benefits
|
30,366 | 26,438 | 21,679 | |||||||||
Net occupancy expense
|
5,322 | 5,497 | 4,975 | |||||||||
Marketing and advertising
|
1,360 | 1,705 | 1,546 | |||||||||
Telephone, postage, and supplies
|
1,799 | 1,737 | 1,459 | |||||||||
Deposit insurance premiums
|
1,312 | 1,407 | 2,097 | |||||||||
Computer services
|
3,690 | 2,386 | 1,853 | |||||||||
FHLB advance prepayment penalty
|
- | 3,069 | 2,111 | |||||||||
Loss on sale and impairment of REO
|
646 | 951 | 3,040 | |||||||||
REO expense
|
1,443 | 2,135 | 1,951 | |||||||||
Merger-related expenses
|
2,708 | - | - | |||||||||
Other
|
6,386 | 6,068 | 5,950 | |||||||||
Total noninterest expense
|
55,032 | 51,393 | 46,661 | |||||||||
Income Before Income Taxes
|
14,855 | 11,028 | 3,880 | |||||||||
Income Tax Expense (Benefit)
|
4,513 | 1,975 | (647 | ) | ||||||||
Net Income
|
$ | 10,342 | $ | 9,053 | $ | 4,527 | ||||||
Per Share Data:
|
||||||||||||
Net income per common share:
|
||||||||||||
Basic
|
$ | 0.54 | $ | 0.45 | n/a | |||||||
Diluted
|
$ | 0.54 | $ | 0.45 | n/a | |||||||
Average shares outstanding:
|
||||||||||||
Basic
|
18,630,774 | 19,922,283 | n/a | |||||||||
Diluted
|
18,715,669 | 19,941,687 | n/a |
June 30,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Net Income
|
$ | 10,342 | $ | 9,053 | $ | 4,527 | ||||||
Other Comprehensive Income (Loss)
|
||||||||||||
Unrealized holding gains (losses) on securities available for sale
|
||||||||||||
Gains (losses) arising during the period
|
$ | 415 | $ | (318 | ) | $ | 286 | |||||
Deferred income tax benefit (expense)
|
(141 | ) | 108 | (97 | ) | |||||||
Total other comprehensive income (loss)
|
$ | 274 | $ | (210 | ) | $ | 189 | |||||
Comprehensive Income
|
$ | 10,616 | $ | 8,843 | $ | 4,716 |
Accumulated
|
||||||||||||||||||||||||
Additional
|
Unearned
|
Other
|
Total
|
|||||||||||||||||||||
Common
|
Paid In
|
Retained
|
ESOP
|
Comprehensive
|
Stockholders’
|
|||||||||||||||||||
Stock
|
Capital
|
Earnings
|
Shares
|
Income (Loss)
|
Equity
|
|||||||||||||||||||
Balance at June 30, 2011
|
$ | - | $ | 31,367 | $ | 136,410 | $ | - | $ | (8 | ) | $ | 167,769 | |||||||||||
Net income
|
- | - | 4,527 | - | - | 4,527 | ||||||||||||||||||
Other comprehensive income
|
- | - | - | - | 189 | 189 | ||||||||||||||||||
Balance at June 30, 2012
|
$ | - | $ | 31,367 | $ | 140,937 | $ | - | $ | 181 | $ | 172,485 | ||||||||||||
Net income
|
- | - | 9,053 | - | - | 9,053 | ||||||||||||||||||
Issuance of common stock
|
212 | 211,388 | - | - | - | 211,600 | ||||||||||||||||||
Common stock issuance cost
|
- | (3,396 | ) | - | - | - | (3,396 | ) | ||||||||||||||||
Loan to ESOP for purchase
of shares
|
- | - | - | (10,580 | ) | - | (10,580 | ) | ||||||||||||||||
Stock repurchased for equity
incentive plan
|
(9 | ) | (13,290 | ) | - | - | - | (13,299 | ) | |||||||||||||||
Granted restricted stock
|
5 | (5 | ) | - | - | - | ||||||||||||||||||
Stock option expense
|
- | 541 | - | - | - | 541 | ||||||||||||||||||
Restricted stock expense
|
- | 572 | - | - | - | 572 | ||||||||||||||||||
ESOP shares allocated
|
- | 220 | - | 529 | - | 749 | ||||||||||||||||||
Other comprehensive loss
|
- | - | - | - | (210 | ) | (210 | ) | ||||||||||||||||
Balance at June 30, 2013
|
$ | 208 | $ | 227,397 | $ | 149,990 | $ | (10,051 | ) | $ | (29 | ) | $ | 367,515 | ||||||||||
Net income
|
- | - | 10,342 | - | - | 10,342 | ||||||||||||||||||
Stock repurchased
|
(18 | ) | (29,668 | ) | - | - | - | (29,686 | ) | |||||||||||||||
Shares issued for Jefferson
Bancshares, Inc. merger
|
17 | 25,222 | - | - | - | 25,239 | ||||||||||||||||||
Stock option expense
|
- | 1,273 | - | - | - | 1,273 | ||||||||||||||||||
Restricted stock expense
|
- | 1,350 | - | - | - | 1,350 | ||||||||||||||||||
ESOP shares allocated
|
- | 315 | - | 529 | - | 844 | ||||||||||||||||||
Other comprehensive income
|
- | - | - | - | 274 | 274 | ||||||||||||||||||
Balance at June 30, 2014
|
$ | 207 | $ | 225,889 | $ | 160,332 | $ | (9,522 | ) | $ | 245 | $ | 377,151 |
June 30,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Operating Activities:
|
||||||||||||
Net income
|
$ | 10,342 | $ | 9,053 | $ | 4,527 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Provision for (recovery of) loan losses
|
(6,300 | ) | 1,100 | 15,600 | ||||||||
Depreciation
|
2,369 | 2,287 | 2,276 | |||||||||
Deferred income tax expense (benefit)
|
4,378 | 1,607 | (537 | ) | ||||||||
Net amortization and accretion
|
(1,272 | ) | (210 | ) | (187 | ) | ||||||
FHLB advance prepayment penalty
|
- | 3,069 | 2,111 | |||||||||
Gain on sale of premises and equipment
|
- | - | (1,503 | ) | ||||||||
Loss on sale and impairment of REO
|
646 | 951 | 3,040 | |||||||||
Earnings from bank owned life insurance
|
(1,484 | ) | (1,553 | ) | (1,037 | ) | ||||||
Gain from sales of securities available for sale
|
(10 | ) | - | - | ||||||||
Gain on sale of loans held for sale
|
(1,603 | ) | (3,751 | ) | (2,900 | ) | ||||||
Origination of loans held for sale
|
(73,501 | ) | (227,117 | ) | (196,708 | ) | ||||||
Proceeds from sales of loans held for sale
|
87,895 | 230,885 | 193,391 | |||||||||
Decrease in deferred loan fees, net
|
(7 | ) | (513 | ) | (853 | ) | ||||||
Decrease (increase) in accrued interest receivable and other assets
|
(853 | ) | 4,326 | 3,523 | ||||||||
ESOP compensation expense
|
844 | 749 | - | |||||||||
Restricted stock and stock option expense
|
2,623 | 1,113 | - | |||||||||
Decrease (increase) in other liabilities
|
(307 | ) | 1,935 | (873 | ) | |||||||
Net cash provided by operating activities
|
23,760 | 23,931 | 19,870 | |||||||||
Investing Activities:
|
||||||||||||
Purchase of securities available for sale
|
(81,565 | ) | (6,000 | ) | (12,539 | ) | ||||||
Proceeds from sales of securities available for sale
|
2,086 | - | - | |||||||||
Proceeds from maturities of securities available for sale
|
45,225 | 6,100 | 37,332 | |||||||||
Purchase of certificates of deposit in other banks
|
(45,132 | ) | (79,927 | ) | (35,816 | ) | ||||||
Maturities of certificates of deposit in other banks
|
17,969 | 51,320 | 46,652 | |||||||||
Principal repayments of mortgage-backed securities
|
9,850 | 6,101 | 3,067 | |||||||||
Net redemptions of FHLB Stock
|
3,239 | 4,446 | 3,330 | |||||||||
Net decrease in loans
|
30,011 | 54,445 | 53,296 | |||||||||
Purchase of bank owned life insurance
|
- | (16,000 | ) | (31,000 | ) | |||||||
Proceeds from redemption of bank owned life insurance
|
- | - | 21,580 | |||||||||
Purchase of premises and equipment
|
(1,688 | ) | (1,581 | ) | (3,218 | ) | ||||||
Capital improvements to REO
|
(236 | ) | (542 | ) | (316 | ) | ||||||
Proceeds from sale of premises and equipment
|
- | - | 1,745 | |||||||||
Proceeds from sale of REO
|
10,592 | 11,061 | 9,688 | |||||||||
Acquisition of BankGreenville Financial Corporation, net of cash paid
|
1,475 | - | - | |||||||||
Acquisition of Jefferson Bancshares, Inc., net of cash paid
|
(6,926 | ) | - | - | ||||||||
Net cash provided by (used in) investing activities
|
(15,100 | ) | 29,423 | 93,801 | ||||||||
Financing Activities:
|
||||||||||||
Net increase (decrease) in deposits
|
(38,166 | ) | (311,425 | ) | 201,590 | |||||||
Net decrease in other borrowings
|
(10,673 | ) | (25,334 | ) | (125,124 | ) | ||||||
Repayment of subordinated debentures
|
(10,000 | ) | - | - | ||||||||
Proceeds from stock conversion
|
- | 208,204 | - | |||||||||
Loan to ESOP for purchase of shares
|
- | (10,580 | ) | - | ||||||||
Common stock repurchased
|
(29,686 | ) | (13,299 | ) | - | |||||||
Decrease in capital lease obligations
|
(18 | ) | (8 | ) | (7 | ) | ||||||
Net cash provided by (used in) financing activities
|
(88,543 | ) | (152,442 | ) | 76,459 | |||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
(79,883 | ) | (99,088 | ) | 190,130 | |||||||
Cash and Cash Equivalents at Beginning of Period
|
125,713 | 224,801 | 34,671 | |||||||||
Cash and Cash Equivalents at End of Period
|
$ | 45,830 | $ | 125,713 | $ | 224,801 | ||||||
June 30,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Supplemental Disclosures:
|
||||||||||||
Cash paid during the period for:
|
||||||||||||
Interest
|
$ | 5,271 | $ | 7,414 | $ | 11,981 | ||||||
Income taxes
|
150 | 123 | 97 | |||||||||
Noncash transactions:
|
||||||||||||
Unrealized gain (loss) in value of securities available for sale, net of
income taxes
|
274 | (210 | ) | 189 | ||||||||
Transfers of loans to REO
|
9,645 | 7,730 | 16,137 | |||||||||
Transfers of loans to held for sale
|
4,340 | - | - | |||||||||
Loans originated to finance the sale of REO
|
94 | 651 | 1,452 | |||||||||
Business Combinations:
|
||||||||||||
Assets acquired
|
600,022 | - | - | |||||||||
Liabilities assumed
|
539,979 | - | - | |||||||||
Net assets acquired
|
60,043 | - | - | |||||||||
1.
|
Summary of Significant Accounting Policies
|
2.
|
Business Combinations
|
Fair Value and
|
||||||||||||
As Recorded
|
Other Merger
|
As Recorded
|
||||||||||
by
|
Related
|
by the
|
||||||||||
Jefferson
|
Adjustments
|
Company
|
||||||||||
Consideration Paid
|
||||||||||||
Cash paid including cash in lieu of fractional shares
|
$ | 25,251 | ||||||||||
Fair value of HomeTrust common stock at $15.03 per share
|
25,239 | |||||||||||
Total consideration
|
$ | 50,490 | ||||||||||
Assets
|
||||||||||||
Cash and cash equivalents
|
$ | 18,325 | $ | - | $ | 18,325 | ||||||
Securities available for sale
|
85,744 | (700 | ) | 85,044 | ||||||||
Loans, net of allowance
|
338,616 | (9,134 | ) | 329,482 | ||||||||
FHLB Stock
|
4,635 | - | 4,635 | |||||||||
REO
|
3,288 | - | 3,288 | |||||||||
Premises and equipment, net
|
24,662 | (1,311 | ) | 23,351 | ||||||||
Accrued interest receivable
|
1,367 | (90 | ) | 1,277 | ||||||||
Deferred income taxes
|
9,606 | 3,395 | 13,001 | |||||||||
Core deposit intangibles
|
847 | 2,683 | 3,530 | |||||||||
Other assets
|
7,171 | - | 7,171 | |||||||||
Total assets acquired
|
$ | 494,261 | $ | (5,157 | ) | $ | 489,104 | |||||
Liabilities
|
||||||||||||
Deposits
|
$ | 376,985 | $ | 371 | $ | 377,356 | ||||||
Other borrowings
|
55,081 | 858 | 55,939 | |||||||||
Subordinated debentures
|
7,460 | 2,540 | 10,000 | |||||||||
Other liabilities
|
2,332 | - | 2,332 | |||||||||
Total liabilities assumed
|
$ | 441,858 | $ | 3,769 | $ | 445,627 | ||||||
Net identifiable assets acquired over liabilities assumed
|
$ | 52,403 | $ | (8,926 | ) | 43,477 | ||||||
Goodwill
|
$ | 7,013 |
Actual
|
Pro Forma
|
Pro Forma
|
||||||||||
Year Ended
|
Year Ended
|
Year Ended
|
||||||||||
June 30, 2014
|
June 30, 2014
|
June 30, 2013
|
||||||||||
Total revenues*
|
$ | 63,587 | $ | 81,663 | $ | 84,060 | ||||||
Net income
|
12,225 | 11,406 | 11,868 |
Purchased
|
Purchased
|
Total
|
||||||||||
Performing
|
Impaired
|
Loans
|
||||||||||
Retail Consumer Loans:
|
||||||||||||
One-to four- family
|
$ | 74,378 | $ | 6,066 | $ | 80,444 | ||||||
Home equity lines of credit
|
16,857 | 18 | 16,875 | |||||||||
Construction and land/lots
|
7,810 | 924 | 8,734 | |||||||||
Consumer
|
3,690 | 2 | 3,692 | |||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
118,534 | 15,649 | 134,183 | |||||||||
Construction and development
|
24,658 | 1,012 | 25,670 | |||||||||
Commercial and industrial
|
52,863 | 6,350 | 59,213 | |||||||||
Total
|
$ | 298,790 | $ | 30,021 | $ | 328,811 |
Fair Value and
|
||||||||||||
As Recorded
|
Other Merger
|
As Recorded
|
||||||||||
by
|
Related
|
by the
|
||||||||||
BankGreenville
|
Adjustments
|
Company
|
||||||||||
Consideration Paid
|
||||||||||||
Cash
|
$ | 7,823 | ||||||||||
Repayment of BankGreenville preferred stock
|
1,050 | |||||||||||
Contingent cash consideration
(1)
|
680 | |||||||||||
Total consideration
|
$ | 9,553 | ||||||||||
Assets
|
||||||||||||
Cash and cash equivalents
|
$ | 10,348 | $ | - | $ | 10,348 | ||||||
Securities available for sale
|
34,345 | - | 34,345 | |||||||||
Loans, net of allowance
|
51,622 | (3,792 | ) | 47,830 | ||||||||
FHLB Stock
|
447 | - | 447 | |||||||||
REO
|
2,317 | (168 | ) | 2,149 | ||||||||
Premises and equipment, net
|
2,458 | (117 | ) | 2,341 | ||||||||
Accrued interest receivable
|
429 | - | 429 | |||||||||
Deferred tax asset
|
- | 2,470 | 2,470 | |||||||||
Core deposit intangibles
|
- | 530 | 530 | |||||||||
Other assets
|
214 | - | 214 | |||||||||
Total assets acquired
|
$ | 102,180 | $ | (1,077 | ) | $ | 101,103 | |||||
Liabilities
|
||||||||||||
Deposits
|
$ | 88,906 | $ | 201 | $ | 89,107 | ||||||
Other borrowings
|
4,700 | 34 | 4,734 | |||||||||
Other liabilities
|
511 | - | 511 | |||||||||
Total liabilities assumed
|
$ | 94,117 | $ | 235 | $ | 94,352 | ||||||
Net identifiable assets acquired over liabilities assumed
|
$ | 8,063 | $ | (1,312 | ) | 6,751 | ||||||
Goodwill
|
$ | 2,802 |
(1)
|
Estimate of additional amount to be paid to shareholders on or about July 31, 2015 based on performance of a select pool of loans totaling approximately $8.0 million.
|
Actual
|
Pro Forma
|
Pro Forma
|
||||||||||
Year Ended
|
Year Ended
|
Year Ended
|
||||||||||
June 30, 2014
|
June 30, 2014
|
June 30, 2013
|
||||||||||
Total revenues*
|
$ | 63,587 | $ | 63,844 | $ | 65,996 | ||||||
Net income
|
12,481 | 9,588 | 9,326 |
Purchased
|
Purchased
|
Total
|
||||||||||
Performing
|
Impaired
|
Loans
|
||||||||||
Retail Consumer Loans:
|
||||||||||||
One-to four- family
|
$ | 8,274 | $ | 1,392 | $ | 9,666 | ||||||
Home equity lines of credit
|
3,987 | 134 | 4,121 | |||||||||
Consumer
|
522 | - | 522 | |||||||||
Commercial:
|
||||||||||||
Commercial real estate
|
23,073 | 4,552 | 27,625 | |||||||||
Construction and development
|
2,367 | 3,529 | 5,896 | |||||||||
Total
|
$ | 38,223 | $ | 9,607 | $ | 47,830 |
3.
|
Securities Available for Sale
|
|
Securities available for sale consist of the following at the dates indicated:
|
June 30, 2014
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
U.S. Government Agencies
|
$ | 38,085 | $ | 45 | $ | (37 | ) | $ | 38,093 | |||||||
Residential Mortgage-backed Securities
|
||||||||||||||||
of U.S. Government Agencies and
|
||||||||||||||||
Government-Sponsored Enterprises
|
111,430 | 393 | (412 | ) | 111,411 | |||||||||||
Municipal Bonds
|
15,951 | 282 | (13 | ) | 16,220 | |||||||||||
Corporate Bonds
|
2,912 | 113 | - | 3,025 | ||||||||||||
Total
|
$ | 168,378 | $ | 833 | $ | (462 | ) | $ | 168,749 |
June 30, 2013
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
U.S. Government Agencies
|
$ | 6,000 | $ | 2 | $ | - | $ | 6,002 | ||||||||
Residential Mortgage-backed Securities
|
||||||||||||||||
of U.S. Government Agencies and
|
||||||||||||||||
Government-Sponsored Enterprises
|
18,794 | 81 | (127 | ) | 18,748 | |||||||||||
Total
|
$ | 24,794 | $ | 83 | $ | (127 | ) | $ | 24,750 |
June 30, 2014
|
||||||||
Amortized
|
Estimated
|
|||||||
Cost
|
Fair Value
|
|||||||
Due within one year
|
$ | 8,555 | $ | 8,555 | ||||
Due after one year through five years
|
21,001 | 21,008 | ||||||
Due after five years through ten years
|
22,323 | 22,649 | ||||||
Due after ten years
|
5,069 | 5,126 | ||||||
Mortgage-backed securities
|
111,430 | 111,411 | ||||||
Total
|
$ | 168,378 | $ | 168,749 |
June 30, 2013
|
||||||||
Amortized
|
Estimated
|
|||||||
Cost
|
Fair Value
|
|||||||
Due within one year
|
$ | - | $ | - | ||||
Due after one year through five years
|
6,000 | 6,002 | ||||||
Due after five years through ten years
|
- | - | ||||||
Due after ten years
|
- | - | ||||||
Mortgage-backed securities
|
18,794 | 18,748 | ||||||
Total
|
$ | 24,794 | $ | 24,750 |
June 30,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Gross proceeds from sales of securities
|
$ | 2,086 | $ | - | $ | - | ||||||
Gross realized gains from sales of securities
|
42 | - | - | |||||||||
Gross realized losses from sales of securities
|
(32 | ) | - | - |
June 30, 2014
|
||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
U.S. Government Agencies
|
$ | 19,475 | $ | (37 | ) | $ | - | $ | - | $ | 19,475 | $ | (37 | ) | ||||||||||
Residential Mortgage-backed
|
||||||||||||||||||||||||
Securities of U.S. Government
|
||||||||||||||||||||||||
Agencies and Government-
|
||||||||||||||||||||||||
Sponsored Enterprises
|
75,761 | (399 | ) | 162 | (13 | ) | 75,923 | (412 | ) | |||||||||||||||
Municipal Bonds
|
6,668 | (13 | ) | - | - | 6,668 | (13 | ) | ||||||||||||||||
Total
|
$ | 101,904 | $ | (449 | ) | $ | 162 | $ | (13 | ) | $ | 102,066 | $ | (462 | ) |
June 30, 2013
|
||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
Residential Mortgage-backed
|
||||||||||||||||||||||||
Securities of U.S. Government
|
||||||||||||||||||||||||
Agencies and Government-
|
||||||||||||||||||||||||
Sponsored Enterprises
|
$ | 5,707 | $ | (122 | ) | $ | 745 | $ | (5 | ) | $ | 6,452 | $ | (127 | ) | |||||||||
Total
|
$ | 5,707 | $ | (122 | ) | $ | 745 | $ | (5 | ) | $ | 6,452 | $ | (127 | ) |
4.
|
Loans
|
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
|||||||
Retail consumer loans:
|
||||||||
One- to four- family
|
$ | 660,200 | $ | 602,050 | ||||
Home equity lines of credit
|
148,379 | 125,676 | ||||||
Construction and land/lots
|
59,249 | 51,546 | ||||||
Consumer
|
15,164 | 3,349 | ||||||
Total retail consumer loans
|
882,992 | 783,621 | ||||||
Commercial loans:
|
||||||||
Commercial real estate
|
377,769 | 231,086 | ||||||
Construction and development
|
56,457 | 23,994 | ||||||
Commercial and industrial
|
74,435 | 11,452 | ||||||
Municipal leases
|
106,215 | 116,377 | ||||||
Total commercial loans
|
614,876 | 382,909 | ||||||
Total loans
|
1,497,868 | 1,165,530 | ||||||
Deferred loan fees, net
|
(1,340 | ) | (1,347 | ) | ||||
Total loans, net of deferred loan fees and discount
|
1,496,528 | 1,164,183 | ||||||
Allowance for loan and lease losses
|
(23,429 | ) | (32,073 | ) | ||||
Net loans
|
$ | 1,473,099 | $ | 1,132,110 |
Special
|
||||||||||||||||||||||||
Pass
|
Mention
|
Substandard
|
Doubtful
|
Loss
|
Total
|
|||||||||||||||||||
June 30, 2014
|
||||||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||||||
One- to four- family
|
$ | 607,313 | $ | 17,639 | $ | 32,331 | $ | 2,907 | $ | 10 | $ | 660,200 | ||||||||||||
Home equity lines of credit
|
141,015 | 1,605 | 5,337 | 420 | 2 | 148,379 | ||||||||||||||||||
Construction and land/lots
|
56,165 | 1,878 | 1,093 | 113 | - | 59,249 | ||||||||||||||||||
Consumer
|
14,957 | 94 | 97 | 13 | 3 | 15,164 | ||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||
Commercial real estate
|
334,290 | 16,931 | 24,604 | 1,944 | - | 377,769 | ||||||||||||||||||
Construction and development
|
43,779 | 5,096 | 7,012 | 570 | - | 56,457 | ||||||||||||||||||
Commercial and industrial
|
71,128 | 873 | 2,431 | - | 3 | 74,435 | ||||||||||||||||||
Municipal leases
|
104,404 | 1,811 | - | - | - | 106,215 | ||||||||||||||||||
Total loans
|
$ | 1,373,051 | $ | 45,927 | $ | 72,905 | $ | 5,967 | $ | 18 | $ | 1,497,868 |
Special
|
||||||||||||||||||||||||
Pass
|
Mention
|
Substandard
|
Doubtful
|
Loss
|
Total
|
|||||||||||||||||||
June 30, 2013
|
||||||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||||||
One- to four- family
|
$ | 536,603 | $ | 14,003 | $ | 47,753 | $ | 3,671 | $ | 20 | $ | 602,050 | ||||||||||||
Home equity lines of credit
|
117,438 | 1,374 | 6,679 | 184 | 1 | 125,676 | ||||||||||||||||||
Construction and land/lots
|
48,914 | 209 | 2,199 | 224 | - | 51,546 | ||||||||||||||||||
Consumer
|
3,144 | 62 | 134 | 6 | 3 | 3,349 | ||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||
Commercial real estate
|
179,310 | 20,105 | 27,116 | 4,555 | - | 231,086 | ||||||||||||||||||
Construction and development
|
9,872 | 2,853 | 10,950 | 318 | 1 | 23,994 | ||||||||||||||||||
Commercial and industrial
|
8,812 | 835 | 1,647 | 157 | 1 | 11,452 | ||||||||||||||||||
Municipal leases
|
114,418 | 1,959 | - | - | - | 116,377 | ||||||||||||||||||
Total loans
|
$ | 1,018,511 | $ | 41,400 | $ | 96,478 | $ | 9,115 | $ | 26 | $ | 1,165,530 |
Past Due
|
Total
|
|||||||||||||||||||
30-89 Days
|
90 Days+
|
Total
|
Current
|
Loans
|
||||||||||||||||
June 30, 2014
|
||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||
One- to four- family
|
$ | 4,929 | $ | 8,208 | $ | 13,137 | $ | 647,063 | $ | 660,200 | ||||||||||
Home equity lines of credit
|
400 | 939 | 1,339 | 147,040 | 148,379 | |||||||||||||||
Construction and land/lots
|
508 | 122 | 630 | 58,619 | 59,249 | |||||||||||||||
Consumer
|
34 | 16 | 50 | 15,114 | 15,164 | |||||||||||||||
Commercial loans:
|
||||||||||||||||||||
Commercial real estate
|
306 | 6,729 | 7,035 | 370,734 | 377,769 | |||||||||||||||
Construction and development
|
1,165 | 3,789 | 4,954 | 51,503 | 56,457 | |||||||||||||||
Commercial and industrial
|
183 | 576 | 759 | 73,676 | 74,435 | |||||||||||||||
Municipal leases
|
- | - | - | 106,215 | 106,215 | |||||||||||||||
Total loans
|
$ | 7,525 | $ | 20,379 | $ | 27,904 | $ | 1,469,964 | $ | 1,497,868 |
Past Due
|
Total
|
|||||||||||||||||||
30-89 Days
|
90 Days+
|
Total
|
Current
|
Loans
|
||||||||||||||||
June 30, 2013
|
||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||
One- to four- family
|
$ | 7,031 | $ | 8,827 | $ | 15,858 | $ | 586,192 | $ | 602,050 | ||||||||||
Home equity lines of credit
|
450 | 1,656 | 2,106 | 123,570 | 125,676 | |||||||||||||||
Construction and land/lots
|
242 | 429 | 671 | 50,875 | 51,546 | |||||||||||||||
Consumer
|
4 | 35 | 39 | 3,310 | 3,349 | |||||||||||||||
Commercial loans:
|
||||||||||||||||||||
Commercial real estate
|
3,805 | 7,085 | 10,890 | 220,196 | 231,086 | |||||||||||||||
Construction and development
|
- | 5,420 | 5,420 | 18,574 | 23,994 | |||||||||||||||
Commercial and industrial
|
193 | 172 | 365 | 11,087 | 11,452 | |||||||||||||||
Municipal leases
|
- | - | - | 116,377 | 116,377 | |||||||||||||||
Total loans
|
$ | 11,725 | $ | 23,624 | $ | 35,349 | $ | 1,130,181 | $ | 1,165,530 |
June 30, 2014
|
June 30, 2013
|
|||||||||||||||
90 Days + &
|
90 Days + &
|
|||||||||||||||
Non-accruing
|
still accruing
|
Non-accruing
|
still accruing
|
|||||||||||||
Retail consumer loans:
|
||||||||||||||||
One- to four- family
|
$ | 17,968 | $ | - | $ | 29,811 | $ | - | ||||||||
Home equity lines of credit
|
3,114 | - | 3,793 | - | ||||||||||||
Construction and land/lots
|
688 | - | 2,172 | - | ||||||||||||
Consumer
|
27 | - | 42 | - | ||||||||||||
Commercial loans:
|
||||||||||||||||
Commercial real estate
|
16,941 | - | 21,149 | - | ||||||||||||
Construction and development
|
6,270 | - | 10,172 | - | ||||||||||||
Commercial and industrial
|
2,003 | - | 1,422 | - | ||||||||||||
Municipal leases
|
- | - | - | - | ||||||||||||
Total loans
|
$ | 47,011 | $ | - | $ | 68,561 | $ | - |
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
|||||||
Performing TDRs included in
|
||||||||
impaired loans
|
$ | 22,179 | $ | 14,012 |
June 30, 2014
|
||||||||||||
Retail
|
||||||||||||
Consumer
|
Commercial
|
Total
|
||||||||||
Balance at beginning of period
|
$ | 21,952 | $ | 10,121 | $ | 32,073 | ||||||
Provision for loan losses
|
(3,447 | ) | (2,853 | ) | (6,300 | ) | ||||||
Charge-offs
|
(4,436 | ) | (901 | ) | (5,337 | ) | ||||||
Recoveries
|
1,662 | 1,331 | 2,993 | |||||||||
Balance at end of period
|
$ | 15,731 | $ | 7,698 | $ | 23,429 |
June 30, 2013
|
||||||||||||
Retail
|
||||||||||||
Consumer
|
Commercial
|
Total
|
||||||||||
Balance at beginning of period
|
$ | 21,172 | $ | 13,928 | $ | 35,100 | ||||||
Provision for loan losses
|
3,641 | (2,541 | ) | 1,100 | ||||||||
Charge-offs
|
(3,715 | ) | (3,276 | ) | (6,991 | ) | ||||||
Recoveries
|
854 | 2,010 | 2,864 | |||||||||
Balance at end of period
|
$ | 21,952 | $ | 10,121 | $ | 32,073 |
June 30, 2012
|
||||||||||||
Retail
|
||||||||||||
Consumer
|
Commercial
|
Total
|
||||||||||
Balance at beginning of period
|
$ | 23,538 | $ | 26,602 | $ | 50,140 | ||||||
Provision for loan losses
|
14,021 | 1,579 | 15,600 | |||||||||
Charge-offs
|
(16,749 | ) | (16,063 | ) | (32,812 | ) | ||||||
Recoveries
|
362 | 1,810 | 2,172 | |||||||||
Balance at end of period
|
$ | 21,172 | $ | 13,928 | $ | 35,100 |
Allowance for Loan Losses
|
Total Loans Receivable
|
|||||||||||||||||||||||
Loans
|
Loans
|
|||||||||||||||||||||||
individually
|
Loans
|
individually
|
Loans
|
|||||||||||||||||||||
evaluated for
|
Collectively
|
evaluated for
|
Collectively
|
|||||||||||||||||||||
impairment
|
Evaluated
|
Total
|
impairment
|
Evaluated
|
Total
|
|||||||||||||||||||
June 30, 2014
|
||||||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||||||
One- to four- family
|
$ | 493 | $ | 10,034 | $ | 10,527 | $ | 23,929 | $ | 636,271 | $ | 660,200 | ||||||||||||
Home equity
|
134 | 2,353 | 2,487 | 3,014 | 145,365 | 148,379 | ||||||||||||||||||
Construction and land/lots
|
379 | 2,041 | 2,420 | 1,735 | 57,514 | 59,249 | ||||||||||||||||||
Consumer
|
3 | 294 | 297 | 10 | 15,154 | 15,164 | ||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||
Commercial real estate
|
26 | 5,413 | 5,439 | 13,784 | 363,985 | 377,769 | ||||||||||||||||||
Construction and development
|
26 | 1,215 | 1,241 | 5,571 | 50,886 | 56,457 | ||||||||||||||||||
Commercial and industrial
|
3 | 246 | 249 | 2,378 | 72,057 | 74,435 | ||||||||||||||||||
Municipal leases
|
- | 769 | 769 | - | 106,215 | 106,215 | ||||||||||||||||||
Total
|
$ | 1,064 | $ | 22,365 | $ | 23,429 | $ | 50,421 | $ | 1,447,447 | $ | 1,497,868 | ||||||||||||
June 30, 2013
|
||||||||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||||||
One- to four- family
|
$ | 1,028 | $ | 14,070 | $ | 15,098 | $ | 35,255 | $ | 566,795 | $ | 602,050 | ||||||||||||
Home equity
|
479 | 3,348 | 3,827 | 4,322 | 121,354 | 125,676 | ||||||||||||||||||
Construction and land/lots
|
19 | 2,871 | 2,890 | 1,844 | 49,702 | 51,546 | ||||||||||||||||||
Consumer
|
3 | 135 | 138 | 3 | 3,346 | 3,349 | ||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||
Commercial real estate
|
110 | 6,473 | 6,583 | 19,446 | 211,640 | 231,086 | ||||||||||||||||||
Construction and development
|
255 | 2,144 | 2,399 | 9,780 | 14,214 | 23,994 | ||||||||||||||||||
Commercial and industrial
|
1 | 155 | 156 | 2,305 | 9,147 | 11,452 | ||||||||||||||||||
Municipal leases
|
- | 982 | 982 | - | 116,377 | 116,377 | ||||||||||||||||||
Total
|
$ | 1,895 | $ | 30,178 | $ | 32,073 | $ | 72,955 | $ | 1,092,575 | $ | 1,165,530 |
Total Impaired Loans
|
||||||||||||||||
With a
|
With No
|
Related
|
||||||||||||||
Recorded
|
Recorded
|
Recorded
|
||||||||||||||
Allowance
|
Allowance
|
Total
|
Allowance
|
|||||||||||||
June 30, 2014
|
||||||||||||||||
Retail consumer loans:
|
||||||||||||||||
One- to four- family
|
$ | 17,379 | $ | 14,614 | $ | 31,993 | $ | 678 | ||||||||
Home equity lines of credit
|
2,445 | 2,305 | 4,750 | 166 | ||||||||||||
Construction and land/lots
|
1,737 | 109 | 1,846 | 411 | ||||||||||||
Consumer
|
16 | 11 | 27 | 3 | ||||||||||||
Commercial loans:
|
||||||||||||||||
Commercial real estate
|
6,228 | 9,114 | 15,342 | 166 | ||||||||||||
Construction and development
|
1,043 | 5,088 | 6,131 | 54 | ||||||||||||
Commercial and industrial
|
835 | 1,903 | 2,738 | 13 | ||||||||||||
Municipal leases
|
- | - | - | - | ||||||||||||
Total impaired loans
|
$ | 29,683 | $ | 33,144 | $ | 62,827 | $ | 1,491 | ||||||||
June 30, 2013
|
||||||||||||||||
Retail consumer loans:
|
||||||||||||||||
One- to four- family
|
$ | 14,194 | $ | 30,219 | $ | 44,413 | $ | 1,176 | ||||||||
Home equity lines of credit
|
3,303 | 2,651 | 5,954 | 518 | ||||||||||||
Construction and land/lots
|
551 | 1,649 | 2,200 | 38 | ||||||||||||
Consumer
|
39 | 3 | 42 | 4 | ||||||||||||
Commercial loans:
|
||||||||||||||||
Commercial real estate
|
998 | 22,716 | 23,714 | 119 | ||||||||||||
Construction and development
|
518 | 10,034 | 10,552 | 256 | ||||||||||||
Commercial and industrial
|
- | 2,864 | 2,864 | - | ||||||||||||
Municipal leases
|
- | - | - | - | ||||||||||||
Total impaired loans
|
$ | 19,603 | $ | 70,136 | $ | 89,739 | $ | 2,111 |
June 30, 2014
|
June 30, 2013
|
|||||||||||||||||||||||
Average
|
Unpaid
|
Interest
|
Average
|
Unpaid
|
Interest
|
|||||||||||||||||||
Recorded
|
Principal
|
Income
|
Recorded
|
Principal
|
Income
|
|||||||||||||||||||
Investment
|
Balance
|
Recognized
|
Investment
|
Balance
|
Recognized
|
|||||||||||||||||||
Retail consumer loans:
|
||||||||||||||||||||||||
One- to four- family
|
$ | 38,949 | $ | 38,493 | $ | 1,624 | $ | 44,060 | $ | 49,176 | $ | 1,867 | ||||||||||||
Home equity lines of credit
|
5,549 | 6,539 | 274 | 5,869 | 9,405 | 194 | ||||||||||||||||||
Construction and land/lots
|
2,080 | 3,671 | 182 | 2,906 | 4,617 | 169 | ||||||||||||||||||
Consumer
|
34 | 364 | 8 | 67 | 184 | 3 | ||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||
Commercial real estate
|
22,116 | 23,458 | 640 | 25,501 | 28,136 | 1,014 | ||||||||||||||||||
Construction and development
|
7,885 | 9,780 | 169 | 12,161 | 17,986 | 425 | ||||||||||||||||||
Commercial and industrial
|
2,747 | 3,857 | 163 | 3,006 | 3,801 | 153 | ||||||||||||||||||
Municipal leases
|
- | - | - | - | - | - | ||||||||||||||||||
Total loans
|
$ | 79,360 | $ | 86,162 | $ | 3,060 | $ | 93,570 | $ | 113,305 | $ | 3,825 |
Year Ended
|
||||
June 30,
|
||||
2014
|
||||
Accretable yield, beginning of period
|
$ | - | ||
Addition from the BankGreenville acquisition
|
1,835 | |||
Addition from the Jefferson acquisition
|
4,949 | |||
Interest income
|
(633 | ) | ||
Accretable yield, end of period
|
$ | 6,151 |
Purchased Performing Loans
|
||||||||
June 30,
|
May 31,
|
|||||||
2014
|
2014
|
|||||||
Contractually required principal payments receivable
|
$ | 304,591 | $ | 305,329 | ||||
Adjustment for credit, interest rate, and liquidity
|
6,514 | 6,539 | ||||||
Balance of purchased loans receivable
|
$ | 298,077 | $ | 298,790 |
Purchased Performing Loans
|
||||||||
June 30,
|
July 31,
|
|||||||
2014
|
2013
|
|||||||
Contractually required principal payments receivable
|
$ | 30,226 | $ | 41,077 | ||||
Adjustment for credit, interest rate, and liquidity
|
2,108 | 2,854 | ||||||
Balance of purchased loans receivable
|
$ | 28,118 | $ | 38,223 |
Purchased Impaired Loans
|
||||||||
Jefferson
|
BankGreenville
|
|||||||
May 31,
|
July 31,
|
|||||||
2014
|
2013
|
|||||||
Contractually required principal and interest payments receivable
|
$ | 40,689 | $ | 12,817 | ||||
Amounts not expected to be collected – nonaccretable difference
|
5,719 | 1,375 | ||||||
Estimated payments expected to be received
|
34,970 | 11,442 | ||||||
Accretable yield
|
4,949 | 1,835 | ||||||
Fair value of purchased impaired loans
|
$ | 30,021 | $ | 9,607 | ||||
June 30, 2014
|
||||||||
Jefferson
|
BankGreenville
|
|||||||
Carrying value of purchased impaired loans
|
$ | 29,849 | $ | 9,008 | ||||
Unpaid principal balance of purchased impaired loans
|
$ | 35,684 | $ | 10,697 |
Year Ended June 30, 2014
|
Year Ended June 30, 2013
|
|||||||||||||||||||||||
Number of Loans
|
Pre Modification Outstanding Recorded Investment
|
Post Modification Outstanding Recorded Investment
|
Number of Loans
|
Pre Modification Outstanding Recorded Investment
|
Post Modification Outstanding Recorded Investment
|
|||||||||||||||||||
Below market interest rate:
|
||||||||||||||||||||||||
Retail consumer:
|
||||||||||||||||||||||||
One- to four- family
|
8 | $ | 417 | $ | 424 | 4 | $ | 1,121 | $ | 1,103 | ||||||||||||||
Home equity lines of credit
|
4 | 371 | 367 | - | - | - | ||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
- | - | - | 1 | 237 | 231 | ||||||||||||||||||
Total
|
12 | $ | 788 | $ | 791 | 5 | $ | 1,358 | $ | 1,334 | ||||||||||||||
Extended payment terms:
|
||||||||||||||||||||||||
Retail consumer:
|
||||||||||||||||||||||||
One- to four- family
|
4 | $ | 379 | $ | 355 | 2 | $ | 87 | $ | 83 | ||||||||||||||
Home equity lines of credit
|
- | - | - | 4 | 85 | 80 | ||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial and industrial
|
- | - | - | 1 | 10 | 10 | ||||||||||||||||||
Total
|
4 | $ | 379 | $ | 355 | 7 | $ | 182 | $ | 173 | ||||||||||||||
Other TDRs:
|
||||||||||||||||||||||||
Retail consumer:
|
||||||||||||||||||||||||
One- to four- family
|
17 | $ | 1,257 | $ | 1,272 | 85 | 6,830 | 6,456 | ||||||||||||||||
Home equity lines of credit
|
2 | 42 | 4 | 39 | 1,232 | 1,157 | ||||||||||||||||||
Construction and land/lots
|
2 | 787 | 767 | 8 | 395 | 377 | ||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial real estate
|
- | - | - | 4 | 1,651 | 1,119 | ||||||||||||||||||
Commercial and industrial
|
- | - | - | 1 | 30 | 27 | ||||||||||||||||||
Total
|
21 | $ | 2,086 | $ | 2,043 | 137 | $ | 10,138 | $ | 9,136 | ||||||||||||||
Total
|
37 | $ | 3,253 | $ | 3,189 | 149 | $ | 11,678 | $ | 10,643 |
Year Ended June 30, 2014
|
Year Ended June 30, 2013
|
|||||||||||||||
Number of
|
Recorded
|
Number of
|
Recorded
|
|||||||||||||
Loans
|
Investment
|
Loans
|
Investment
|
|||||||||||||
Below market interest rate:
|
||||||||||||||||
Retail consumer:
|
||||||||||||||||
One- to four- family
|
1 | $ | 71 | - | $ | - | ||||||||||
Home equity lines of credit
|
2 | 274 | - | - | ||||||||||||
Total
|
3 | $ | 345 | - | $ | - | ||||||||||
Extended payment terms:
|
||||||||||||||||
Retail consumer:
|
||||||||||||||||
One- to four- family
|
1 | $ | 278 | 2 | $ | 83 | ||||||||||
Home equity lines of credit
|
- | - | 1 | 12 | ||||||||||||
Commercial:
|
||||||||||||||||
Commercial and industrial
|
- | - | 1 | 10 | ||||||||||||
Total
|
1 | $ | 278 | 4 | $ | 105 | ||||||||||
Other TDRs:
|
||||||||||||||||
Retail consumer:
|
||||||||||||||||
One- to four- family
|
4 | $ | 322 | 27 | $ | 2,510 | ||||||||||
Home equity lines of credit
|
- | - | 6 | 111 | ||||||||||||
Construction and land/lots
|
- | - | 5 | 164 | ||||||||||||
Commercial:
|
||||||||||||||||
Commercial real estate
|
- | - | 3 | 126 | ||||||||||||
Commercial and industrial
|
- | - | 1 | 27 | ||||||||||||
Total
|
4 | $ | 322 | 42 | $ | 2,938 | ||||||||||
Total
|
8 | $ | 945 | 46 | $ | 3,043 |
5.
|
Premises and Equipment
|
June 30,
|
||||||||
2014
|
2013
|
|||||||
Land
|
$ | 12,588 | $ | 5,720 | ||||
Land held under capital lease
|
2,052 | 2,052 | ||||||
Office buildings
|
44,899 | 26,286 | ||||||
Furniture, fixtures and equipment
|
13,391 | 12,456 | ||||||
Total
|
72,930 | 46,514 | ||||||
Less accumulated depreciation
|
(25,519 | ) | (24,114 | ) | ||||
Premises and equipment, net
|
$ | 47,411 | $ | 22,400 |
6.
|
Accrued Interest Receivable
|
June 30,
|
||||||||
2014
|
2013
|
|||||||
Loans
|
$ | 6,051 | $ | 5,392 | ||||
Securities available for sale
|
595 | 35 | ||||||
Other
|
141 | 122 | ||||||
Total
|
$ | 6,787 | $ | 5,549 |
7.
|
Goodwill and Core Deposit Intangibles
|
June 30, 2014
|
||||
2015
|
$ | 1,110 | ||
2016
|
839 | |||
2017
|
698 | |||
2018
|
560 | |||
2019
|
425 | |||
Thereafter
|
382 | |||
Total
|
$ | 4,014 |
8.
|
Deposit Accounts
|
Weighted Average
Interest Rates
|
||||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Noninterest-bearing accounts
|
$ | 123,285 | $ | 60,828 | 0.00 | % | 0.00 | % | ||||||||
NOW accounts
|
295,386 | 195,659 | 0.10 | % | 0.11 | % | ||||||||||
Money market accounts
|
354,247 | 275,718 | 0.24 | % | 0.28 | % | ||||||||||
Savings accounts
|
175,974 | 82,158 | 0.19 | % | 0.19 | % | ||||||||||
Certificates of deposit
|
634,155 | 540,387 | 0.70 | % | 0.90 | % | ||||||||||
Total
|
$ | 1,583,047 | $ | 1,154,750 | 0.37 | % | 0.52 | % |
June 30, 2014
|
June 30, 2013
|
|||||||
Within 1 year
|
$ | 451,077 | $ | 374,514 | ||||
1 year to 2 years
|
94,918 | 75,944 | ||||||
2 years to 3 years
|
52,908 | 44,097 | ||||||
3 years to 4 years
|
16,383 | 25,321 | ||||||
4 years to 5 years
|
18,869 | 20,511 | ||||||
Total
|
$ | 634,155 | $ | 540,387 |
June 30,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
NOW accounts
|
$ | 275 | $ | 212 | $ | 320 | ||||||
Money market accounts
|
788 | 895 | 1,397 | |||||||||
Savings accounts
|
156 | 199 | 314 | |||||||||
Certificates of deposit
|
4,198 | 5,669 | 8,213 | |||||||||
Total
|
$ | 5,417 | $ | 6,975 | $ | 10,244 |
9.
|
Other Borrowings
|
June 30,
|
||||||||||||||||
2014
|
2013
|
|||||||||||||||
Balance
|
Weighted Average
Rate
|
Balance
|
Weighted Average
Rate
|
|||||||||||||
FHLB advances maturing:
|
||||||||||||||||
Within one year
|
$ | 50,000 | 0.20 | % | $ | - | - | |||||||||
Total
|
$ | 50,000 | 0.20 | % | $ | - | - |
10.
|
Leases
|
Fiscal year ending:
|
June 30,
2014
|
|||
2015
|
$ | 836 | ||
2016
|
709 | |||
2017
|
613 | |||
2018
|
578 | |||
Thereafter
|
196 | |||
Total of future minimum payments
|
$ | 2,932 |
Fiscal year ending:
|
June 30,
2014
|
|||
2015
|
$ | 122 | ||
2016
|
122 | |||
2017
|
123 | |||
2018
|
123 | |||
2019-2029
|
2,807 | |||
Total minimum lease payments
|
3,297 | |||
Less: amount representing interest
|
(1,299 | ) | ||
Present value of net minimum lease payments
|
$ | 1,998 |
11.
|
Income Taxes
|
June 30,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Current:
|
||||||||||||
Federal
|
$ | 75 | $ | 324 | $ | (118 | ) | |||||
State
|
9 | 44 | 8 | |||||||||
Total current expense (benefit)
|
84 | 368 | (110 | ) | ||||||||
Deferred:
|
||||||||||||
Federal
|
2,904 | 911 | (769 | ) | ||||||||
State
|
1,525 | 696 | 232 | |||||||||
Total deferred expense (benefit)
|
4,429 | 1,607 | (537 | ) | ||||||||
Total income tax expense (benefit)
|
$ | 4,513 | $ | 1,975 | $ | (647 | ) |
Year Ended June 30,
|
||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||
$ | Rate | $ | Rate | $ | Rate | |||||||||||||||||||
Tax at federal income tax rate
|
$ | 5,051 | 34 | % | $ | 3,749 | 34 | % | $ | 1,319 | 34 | % | ||||||||||||
Increase (decrease) resulting from:
|
||||||||||||||||||||||||
Tax exempt income
|
(1,740 | ) | (12 | ) | (1,946 | ) | (18 | ) | (2,136 | ) | (55 | ) | ||||||||||||
Nondeductible merger expenses
|
162 | 1 | - | - | - | - | ||||||||||||||||||
Change in valuation allowance for deferred
tax assets, allocated to income tax expense
|
(1,160 | ) | (8 | ) | (390 | ) | (4 | ) | 28 | 1 | ||||||||||||||
State tax, net of federal benefit
|
1,012 | 7 | 489 | 4 | 156 | 4 | ||||||||||||||||||
Other
|
1,188 | 8 | 73 | 1 | (14 | ) | (1 | ) | ||||||||||||||||
Total
|
$ | 4,513 | 30 | % | $ | 1,975 | 18 | % | $ | (647 | ) | (17 | )% |
June 30,
|
||||||||
2014
|
2013
|
|||||||
Deferred tax assets:
|
||||||||
Alternative minimum tax credit
|
$ | 3,772 | $ | 3,650 | ||||
Allowance for loan losses
|
8,965 | 12,564 | ||||||
Deferred compensation and post-retirement benefits
|
16,668 | 16,998 | ||||||
Accrued vacation and sick leave
|
29 | 358 | ||||||
Impairments on real estate owned
|
1,462 | 972 | ||||||
Other than temporary impairment on investments
|
3,721 | |||||||
Capital loss carryforward
|
- | 10 | ||||||
Net operating loss carryforward
|
22,825 | 16,336 | ||||||
Discount from business combination
|
5,334 | 509 | ||||||
Unrealized loss on securities held for sale
|
- | 16 | ||||||
Other
|
1,827 | 590 | ||||||
Total gross deferred tax assets
|
64,603 | 52,003 | ||||||
Less valuation allowance
|
(1,014 | ) | (2,178 | ) | ||||
Deferred tax assets
|
63,589 | 49,825 | ||||||
Deferred tax (liabilities):
|
||||||||
Depreciable basis of fixed assets
|
(2,340 | ) | (1,026 | ) | ||||
Deferred loan fees
|
(336 | ) | (530 | ) | ||||
FHLB stock, book basis in excess of tax
|
(144 | ) | (147 | ) | ||||
Stock Compensation Plans
|
- | (694 | ) | |||||
Unrealized gain on securities available for sale
|
(138 | ) | - | |||||
Other
|
(2,250 | ) | - | |||||
Total gross deferred tax liabilities
|
(5,208 | ) | (2,397 | ) | ||||
Net deferred tax assets
|
$ | 58,381 | $ | 47,428 |
12.
|
Employee Benefit Plans
|
13.
|
Deferred Compensation Agreements
|
June 30,
|
||||||||
2014
|
2013
|
|||||||
Net cash surrender value of life insurance, related to deferred compensation
|
$ | 6,962 | $ | 6,238 | ||||
Deferred compensation liability, included in other liabilities
|
1,752 | 1,827 |
14.
|
Employee Stock Ownership Plan
|
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
|||||||
Unallocated ESOP shares
|
952,200 | 1,005,100 | ||||||
Allocated ESOP shares
|
52,900 | - | ||||||
ESOP shares committed to be released
|
52,900 | 52,900 | ||||||
Total ESOP shares
|
1,058,000 | 1,058,000 | ||||||
Fair value of unallocated ESOP shares
|
$ | 15,016 | $ | 17,046 |
15.
|
Net Income per Share
|
June 30,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Numerator:
|
||||||||||||
Net income available to common stockholders
|
$ | 10,342 | $ | 9,053 | $ | 4,527 | ||||||
Denominator:
|
||||||||||||
Weighted-average common shares outstanding - basic
|
18,630,774 | 19,922,283 | - | |||||||||
Effect of dilutive shares
|
84,895 | 19,404 | - | |||||||||
Weighted-average common shares outstanding - diluted
|
18,715,669 | 19,941,687 | - | |||||||||
Net income per share - basic
|
$ | 0.54 | $ | 0.45 | $ | - | ||||||
Net income per share - diluted
|
$ | 0.54 | $ | 0.45 | $ | - | ||||||
16.
|
Equity Incentive Plan
|
Weighted-
|
Remaining
|
Aggregate
|
||||||||||||||
average
|
contractual life
|
Intrinsic
|
||||||||||||||
Options
|
exercise price
|
(years)
|
Value
|
|||||||||||||
Options outstanding at June 30, 2012
|
- | - | - | |||||||||||||
Granted
|
1,557,000 | $ | 14.37 | 9.6 | ||||||||||||
Exercised
|
- | - | - | |||||||||||||
Forfeited
|
- | - | - | |||||||||||||
Expired
|
- | - | - | |||||||||||||
Options outstanding at June 30, 2013
|
1,557,000 | $ | 14.37 | 9.6 | $ | 4,033 | ||||||||||
Granted
|
30,000 | 15.83 | - | |||||||||||||
Exercised
|
- | - | - | |||||||||||||
Forfeited
|
73,500 | 14.37 | - | |||||||||||||
Expired
|
- | - | - | |||||||||||||
Options outstanding at June 30, 2014
|
1,513,500 | $ | 14.40 | 8.6 | $ | 2,077 | ||||||||||
Exercisable at June 30, 2014
|
290,175 | $ | 14.37 | 8.6 |
Assumptions in Estimating Option Values
|
||||||||
2014
|
2013
|
|||||||
Weighted-average volatility
|
28.19 | % | 28.19 | % | ||||
Expected dividend yield
|
0.00 | % | 0.00 | % | ||||
Risk-free interest rate
|
2.04 | % | 1.28 | % | ||||
Expected life (years)
|
6.5 | 6.6 |
Weighted-
|
Aggregate
|
|||||||||||
Restricted
|
average grant
|
Intrinsic
|
||||||||||
stock awards
|
date fair value
|
Value
|
||||||||||
Non-vested at June 30, 2012
|
- | - | ||||||||||
Granted
|
511,300 | $ | 14.37 | |||||||||
Vested
|
- | - | ||||||||||
Forfeited
|
- | - | ||||||||||
Non-vested at June 30, 2013
|
511,300 | $ | 14.37 | $ | 8,672 | |||||||
Granted
|
7,050 | 15.80 | ||||||||||
Vested
|
95,485 | 14.37 | ||||||||||
Forfeited
|
18,900 | 14.37 | ||||||||||
Non-vested at June 30, 2014
|
403,965 | $ | 15.05 | $ | 6,371 | |||||||
17.
|
Commitments and Contingencies
|
18.
|
Capital
|
Actual
|
For Capital
Adequacy
Purposes
|
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As of June 30, 2014:
|
||||||||||||||||||||||||
Tier I Capital (to Total Adjusted Assets)
|
$ | 264,041 | 13.37 | % | $ | 78,985 | 4.00 | % | $ | 98,719 | 5.00 | % | ||||||||||||
Tier I Capital (to Risk-weighted Assets)
|
$ | 264,041 | 18.29 | % | $ | - | - | % | $ | 86,625 | 6.00 | % | ||||||||||||
Total Risk-based Capital (to Risk-
weighted Assets)
|
$ | 282,160 | 19.54 | % | $ | 115,501 | 8.00 | % | $ | 144,376 | 10.00 | % | ||||||||||||
As of June 30, 2013:
|
||||||||||||||||||||||||
Tier I Capital (to Total Adjusted Assets)
|
$ | 228,454 | 15.25 | % | $ | 59,920 | 4.00 | % | $ | 74,901 | 5.00 | % | ||||||||||||
Tier I Capital (to Risk-weighted Assets)
|
$ | 228,454 | 21.89 | % | $ | - | - | % | $ | 62,620 | 6.00 | % | ||||||||||||
Total Risk-based Capital (to Risk-
weighted Assets)
|
$ | 241,736 | 23.16 | % | $ | 83,493 | 8.00 | % | $ | 104,367 | 10.00 | % |
June 30,
|
||||||||
2014
|
2013
|
|||||||
Total equity capital under US GAAP
|
$ | 337,561 | $ | 276,669 | ||||
Accumulated other comprehensive (income) loss, net of tax
|
(245 | ) | 29 | |||||
Investment in nonincludable subsidiary
|
(1,065 | ) | (696 | ) | ||||
Disallowed deferred tax assets
|
(58,381 | ) | (47,428 | ) | ||||
Disallowed goodwill and other disallowed intangible assets
|
(13,829 | ) | (120 | ) | ||||
Tier I Capital
|
264,041 | 228,454 | ||||||
Allowable portion of allowance for loan losses
|
18,119 | 13,282 | ||||||
Total Risk-based Capital
|
$ | 282,160 | $ | 241,736 |
19.
|
Parent Company Financial Information
|
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
|||||||
Assets:
|
||||||||
Cash and equivalents
|
$ | 3,496 | $ | 43,045 | ||||
Certificates of deposit in other banks
|
10,196 | 10,197 | ||||||
Total loans
|
15,523 | 23,947 | ||||||
Allowance for loan losses
|
(199 | ) | (224 | ) | ||||
Net loans
|
15,324 | 23,723 | ||||||
Real estate owned
|
1,004 | 3,529 | ||||||
Investment in bank subsidiary
|
337,561 | 276,668 | ||||||
ESOP loan receivable
|
9,722 | 10,152 | ||||||
Other assets
|
910 | 602 | ||||||
Total Assets
|
$ | 378,213 | $ | 367,917 | ||||
Liabilities and Stockholders’ Equity:
|
||||||||
Other liabilities
|
1,062 | 402 | ||||||
Stockholders’ Equity
|
377,151 | 367,515 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 378,213 | $ | 367,917 |
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
|||||||
Income:
|
||||||||
Interest income
|
$ | 1,418 | $ | 1,615 | ||||
Other income
|
9 | 8 | ||||||
Equity earnings in Bank subsidiary
|
9,444 | 10,123 | ||||||
Total income
|
10,871 | 11,746 | ||||||
Expense:
|
||||||||
Management fee expense
|
351 | 354 | ||||||
REO expense
|
237 | 195 | ||||||
Loss on sale and impairment of real estate owned
|
118 | 638 | ||||||
Provision (Recovery) for loan losses
|
(357 | ) | 1,300 | |||||
Other expense
|
137 | 47 | ||||||
Total expense
|
486 | 2,534 | ||||||
Income Before Income Taxes
|
10,385 | 9,212 | ||||||
Income Tax Expense
|
43 | 159 | ||||||
Net Income
|
$ | 10,342 | $ | 9,053 |
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
|||||||
Operating Activities:
|
||||||||
Net income
|
$ | 10,342 | $ | 9,053 | ||||
Adjustments to reconcile net income to net cash provided by
operating activities:
|
||||||||
Provision for (recovery of) loan losses
|
(357 | ) | 1,300 | |||||
Loss on sale and impairment of real estate owned
|
118 | 638 | ||||||
Increase in accrued interest receivable and other assets
|
(308 | ) | (602 | ) | ||||
Equity in undistributed income of Bank
|
(9,444 | ) | (10,123 | ) | ||||
ESOP compensation expense
|
844 | 749 | ||||||
Restricted stock and stock option expense
|
2,623 | 1,113 | ||||||
Increase in other liabilities
|
660 | 402 | ||||||
Net cash provided by operating activities
|
4,478 | 2,530 | ||||||
Investing Activities:
|
||||||||
Purchase of certificates of deposit in other banks
|
(248 | ) | (10,446 | ) | ||||
Maturities of certificates of deposit in other banks
|
249 | 249 | ||||||
Purchase of loans from Bank subsidiary
|
- | (32,332 | ) | |||||
Repayment of loans
|
6,356 | 7,149 | ||||||
Purchase of real estate owned from Bank subsidiary
|
- | (5,892 | ) | |||||
Capital improvements to real estate owned
|
(4 | ) | (240 | ) | ||||
Increase in investment in Bank subsidiary
|
(51,883 | ) | (104,851 | ) | ||||
Dividend from subsidiary
|
19,110 | - | ||||||
ESOP loan
|
- | (10,580 | ) | |||||
ESOP principal payments received
|
430 | 428 | ||||||
Proceeds from sale of real estate owned
|
4,811 | 2,125 | ||||||
Purchase of BankGreenville Financial
|
(1,475 | ) | - | |||||
Purchase of Jefferson Bancshares, Inc
|
(6,926 | ) | - | |||||
Net cash used in investing activities
|
(29,580 | ) | (154,390 | ) | ||||
Financing Activities:
|
||||||||
Repayment of subordinated debentures
|
(10,000 | ) | ||||||
Proceeds from stock conversion
|
- | 208,204 | ||||||
Common stock repurchased
|
(29,686 | ) | (13,299 | ) | ||||
Stock issued for purchase of Jefferson Bancshares, Inc.
|
25,239 | |||||||
Net cash provided by (used in) financing activities
|
(14,447 | ) | 194,905 | |||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
(39,549 | ) | 43,045 | |||||
Cash and Cash Equivalents at Beginning of Period
|
43,045 | - | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 3,496 | $ | 43,045 |
20.
|
Fair Value of Financial Instruments
|
Level 1:
|
Valuation is based upon quoted prices for identical instruments traded in active markets.
|
Level 2:
|
Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
|
Level 3:
|
Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
|
June 30, 2014
|
||||||||||||||||
Description
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
U.S Government Agencies
|
$ | 38,093 | $ | - | $ | 38,093 | $ | - | ||||||||
Residential Mortgage-backed
Securities of U.S. Government
Agencies and Government
sponsored Enterprises
|
111,411 | - | 111,411 | - | ||||||||||||
Municipal Bonds
|
16,220 | - | 16,220 | - | ||||||||||||
Corporate Bonds
|
3,025 | - | 3,025 | - | ||||||||||||
Total
|
$ | 168,749 | $ | - | $ | 168,749 | $ | - |
June 30, 2013
|
||||||||||||||||
Description
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
U.S Government Agencies
|
$ | 6,002 | $ | - | $ | 6,002 | $ | - | ||||||||
Residential Mortgage-backed
Securities of U.S. Government
Agencies and Government
sponsored Enterprises
|
18,748 | - | 18,748 | - | ||||||||||||
Total
|
$ | 24,750 | $ | - | $ | 24,750 | $ | - |
Year Ended June 30, 2014
|
||||||||||||||||
Description
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Impaired loans
|
$ | 3,686 | $ | - | $ | - | $ | 3,686 | ||||||||
Real Estate Owned
|
9,185 | - | - | 9,185 | ||||||||||||
Total
|
$ | 12,871 | $ | - | $ | - | $ | 12,871 |
Year Ended June 30, 2013
|
||||||||||||||||
Description
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Impaired loans
|
$ | 12,106 | $ | - | $ | - | $ | 12,106 | ||||||||
Real Estate Owned
|
2,403 | - | - | 2,403 | ||||||||||||
Total
|
$ | 14,509 | $ | - | $ | - | $ | 14,509 |
Fair Value
|
||||||||||||||
at June 30,
|
Valuation
|
Unobservable
|
Weighted
|
|||||||||||
2014
|
Techniques
|
Input
|
Range
|
Average
|
||||||||||
Nonrecurring measurements:
|
||||||||||||||
Impaired loans, net
|
$ | 3,686 |
Discounted Appraisals
|
Collateral discounts
|
3% - 66 | % | 18 | % | ||||||
Real estate owned
|
9,185 |
Discounted Appraisals
|
Collateral discounts
|
10% - 27 | % | 15 | % | |||||||
June 30, 2014
|
||||||||||||||||||||
Carrying
|
Fair
|
|||||||||||||||||||
Value
|
Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||
Cash and interest-bearing deposits
|
$ | 45,830 | $ | 45,830 | $ | 45,830 | $ | - | $ | - | ||||||||||
Certificates of deposit in other banks
|
163,780 | 163,780 | - | 163,780 | - | |||||||||||||||
Securities available for sale
|
168,749 | 168,749 | - | 168,749 | - | |||||||||||||||
Loans, net
|
1,473,099 | 1,381,438 | - | - | 1,381,438 | |||||||||||||||
Loans held for sale
|
2,537 | 2,578 | - | - | 2,578 | |||||||||||||||
FHLB stock
|
3,697 | 3,697 | 3,697 | - | - | |||||||||||||||
Accrued interest receivable
|
6,787 | 6,787 | - | 736 | 6,051 | |||||||||||||||
Noninterest-bearing and NOW deposits
|
418,671 | 418,671 | - | 418,671 | - | |||||||||||||||
Money market accounts
|
354,247 | 354,247 | - | 354,247 | - | |||||||||||||||
Savings accounts
|
175,974 | 175,974 | - | 175,974 | - | |||||||||||||||
Certificates of deposit
|
634,154 | 620,196 | - | 620,196 | - | |||||||||||||||
Other borrowings
|
50,000 | 50,000 | - | 50,000 | ||||||||||||||||
Accrued interest payable
|
244 | 244 | - | 244 | - |
June 30, 2013
|
||||||||||||||||||||
Carrying
|
Fair
|
|||||||||||||||||||
Value
|
Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||
Cash and interest-bearing deposits
|
$ | 125,713 | $ | 125,713 | $ | 125,713 | $ | - | $ | - | ||||||||||
Certificates of deposit in other banks
|
136,617 | 136,617 | - | 136,617 | - | |||||||||||||||
Securities available for sale
|
24,750 | 24,750 | - | 24,750 | - | |||||||||||||||
Loans, net
|
1,132,110 | 1,064,954 | - | - | 1,064,954 | |||||||||||||||
Loans held for sale
|
10,770 | 10,942 | - | - | 10,942 | |||||||||||||||
FHLB stock
|
1,854 | 1,854 | 1,854 | - | - | |||||||||||||||
Accrued interest receivable
|
5,549 | 5,549 | - | 157 | 5,392 | |||||||||||||||
Noninterest-bearing and NOW deposits
|
256,487 | 256,487 | - | 256,487 | - | |||||||||||||||
Money market accounts
|
275,718 | 275,718 | - | 275,718 | - | |||||||||||||||
Savings accounts
|
82,158 | 82,158 | - | 82,158 | - | |||||||||||||||
Certificates of deposit
|
540,387 | 545,716 | - | 545,716 | - | |||||||||||||||
Accrued interest payable
|
84 | 84 | - | 84 | - |
21.
|
Unaudited Interim Financial Information
|
Three months ended
|
||||||||||||||||
June 30,
2014
|
March 31,
2014
|
December 31,
2013
|
September 30,
2013
|
|||||||||||||
Interest and dividend income
|
$ | 15,781 | $ | 14,392 | $ | 15,265 | $ | 14,843 | ||||||||
Interest expense
|
1,255 | 1,248 | 1,383 | 1,546 | ||||||||||||
Net interest income
|
14,526 | 13,144 | 13,882 | 13,297 | ||||||||||||
Provision for loan losses
|
(1,500 | ) | (1,800 | ) | (700 | ) | (2,300 | ) | ||||||||
Net interest income after provision
for loan losses
|
16,026 | 14,944 | 14,582 | 15,597 | ||||||||||||
Noninterest income
|
2,196 | 2,025 | 2,246 | 2,271 | ||||||||||||
Noninterest expense
|
16,415 | 13,396 | 13,346 | 11,875 | ||||||||||||
Net income before provision for
income taxes
|
1,807 | 3,573 | 3,482 | 5,993 | ||||||||||||
Income tax expense
|
274 | 967 | 606 | 2,666 | ||||||||||||
Net income
|
$ | 1,533 | $ | 2,606 | $ | 2,876 | $ | 3,327 | ||||||||
Net income per common share:
|
||||||||||||||||
Basic
|
0.08 | 0.14 | 0.15 | 0.17 | ||||||||||||
Diluted
|
0.08 | 0.14 | 0.15 | 0.17 |
Three months ended
|
||||||||||||||||
June 30,
2013
|
March 31,
2013
|
December 31,
2012
|
September 30,
2012
|
|||||||||||||
Interest and dividend income
|
$ | 14,498 | $ | 14,683 | $ | 15,481 | $ | 15,728 | ||||||||
Interest expense
|
1,495 | 1,647 | 1,904 | 2,209 | ||||||||||||
Net interest income
|
13,003 | 13,036 | 13,577 | 13,519 | ||||||||||||
Provision for loan losses
|
(1,200 | ) | 500 | 300 | 1,500 | |||||||||||
Net interest income after provision
for loan losses
|
14,203 | 12,536 | 13,277 | 12,019 | ||||||||||||
Noninterest income
|
2,563 | 2,627 | 2,853 | 2,343 | ||||||||||||
Noninterest expense
|
12,561 | 12,058 | 13,381 | 13,393 | ||||||||||||
Net income before provision for
income taxes
|
4,205 | 3,105 | 2,749 | 969 | ||||||||||||
Income tax expense (benefit)
|
1,187 | 490 | 481 | (183 | ) | |||||||||||
Net income
|
$ | 3,018 | $ | 2,615 | $ | 2,268 | $ | 1,152 | ||||||||
Net income per common share:
|
||||||||||||||||
Basic
|
0.15 | 0.13 | 0.11 | 0.06 | ||||||||||||
Diluted
|
0.15 | 0.13 | 0.11 | 0.06 |
22.
|
Subsequent Events
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accountant Fees and Services
|
(a)(1)
|
Financial Statements: See Part II--Item 8. Financial Statements and Supplementary Data.
|
(a)(2)
|
Financial Statement Schedules: All financial statement schedules have been omitted as the information is not required under the related instructions or is not applicable.
|
(a)(3)
|
Exhibits: See Exhibit Index.
|
(b)
|
Exhibits: See Exhibit Index.
|
HOMETRUST BANCSHARES, INC. | ||
Date: September 15, 2014
|
By:
|
/s/ Dana L. Stonestreet
|
Dana L. Stonestreet
|
||
Chairman of the Board,
|
||
President, and Chief Executive Officer
|
||
Signature
|
Title
|
Date
|
|
/s/ Dana L. Stonestreet
|
Chairman of the Board, President and Chief Executive Officer
|
September 15, 2014
|
|
Dana L. Stonestreet
|
(Principal Executive Officer)
|
||
/s/ Tony J. VunCannon
|
Senior Vice President, Chief Financial Officer and Treasurer
|
September 15, 2014
|
|
Tony J. VunCannon
|
(Principal Financial and Accounting Officer)
|
||
/s/ H. Stanford Allen
|
Director
|
September 15, 2014
|
|
H. Stanford Allen
|
|
||
/s/ Sidney A. Biesecker
|
Director
|
September 15, 2014
|
|
Sidney A. Biesecker
|
|
||
/s/ Robert G. Dinsmore, Jr.
|
Director
|
September 15, 2014
|
|
Robert G. Dinsmore, Jr.
|
|||
/s/ William T. Flynt
|
Director
|
September 15, 2014
|
|
William T. Flynt
|
|||
/s/ J. Steven Goforth
|
Director
|
September 15, 2014
|
|
J. Steven Goforth
|
|||
/s/ Craig C. Koontz
|
Director
|
September 15, 2014
|
|
Craig C. Koontz
|
|||
/s/ Larry S. McDevitt
|
Director
|
September 15, 2014
|
|
Larry S. McDevitt
|
|||
/s/ F.K. McFarland, III
|
Director
|
September 15, 2014
|
|
F.K. McFarland, III
|
|||
/s/ Peggy C. Melville
|
Director
|
September 15, 2014
|
|
Peggy C. Melville
|
|||
/s/ Robert E. Shepherd, Sr.
|
Director
|
September 15, 2014
|
|
Robert E. Shepherd, Sr.
|
|||
/s/ Anderson L. Smith
|
Director
|
September 15, 2014
|
|
Anderson L. Smith
|
Regulation S-K Exhibit Number
|
Document
|
Reference to Prior Filing or Exhibit Number Attached Hereto
|
2.1
|
Purchase and Assumption Agreement, dated as of June 9, 2014, between Bank of America, National Association and HomeTrust Bank
|
(a)
|
2.2
|
Agreement and Plan of Merger, dated as of January 22, 2014, by and between HomeTrust Bancshares, Inc. and Jefferson Bancshares, Inc.
|
(b)
|
3.1
|
Charter of HomeTrust Bancshares, Inc.
|
(c)
|
3.2
|
Articles Supplementary to the Charter of HomeTrust Bancshares, Inc. for HomeTrust Bancshares, Inc.’s Junior Participating Preferred Stock, Series A
|
(d)
|
3.3
|
Bylaws of HomeTrust Bancshares, Inc.
|
(e)
|
4.1
|
Tax Benefits Preservation Plan, dated as of September 25, 2012, between HomeTrust Bancshares, Inc. and Registrar and Transfer Company, as Rights Agent
|
(d)
|
10.1
|
Employment Agreement entered into between HomeTrust Bancshares, Inc. and F. Edward Broadwell, Jr.
|
(c)
|
10.2
|
Amended and Restated Employment Agreement entered into between HomeTrust Bancshares, Inc. and Dana L. Stonestreet
|
(f)
|
10.3
|
Employment Agreement entered into between HomeTrust Bancshares, Inc. and each of Tony J. VunCannon, Howard L. Sellinger and Charles I. Abbitt, Jr.
|
(c)
|
10.4
|
Employment Agreement entered into between HomeTrust Bancshares, Inc. and C. Hunter Westbrook
|
(g)
|
10.5
|
Employment Agreement between HomeTrust Bank and Sidney A. Biesecker
|
(c)
|
10.6
|
Employment Agreement between HomeTrust Bank and Stan Allen
|
(c)
|
10.7
|
HomeTrust Bank Executive Supplemental Retirement Income Master Agreement (“SERP”)
|
(c)
|
10.7A
|
SERP Joinder Agreement for F. Edward Broadwell, Jr.
|
(c)
|
10.7B
|
SERP Joinder Agreement for Dana L. Stonestreet
|
(c)
|
10.7C
|
SERP Joinder Agreement for Tony J. VunCannon
|
(c)
|
10.7D
|
SERP Joinder Agreement for Howard L. Sellinger
|
(c)
|
10.7E
|
SERP Joinder Agreement for Stan Allen
|
(c)
|
10.7F
|
SERP Joinder Agreement for Sidney A. Biesecker
|
(c)
|
10.7G
|
SERP Joinder Agreement for Peggy C. Melville
|
(c)
|
10.7H
|
SERP Joinder Agreement for William T. Flynt
|
(c)
|
10.7I
|
Amended and Restated Supplemental Income Agreement between HomeTrust Bank, as successor to Industrial Federal Savings Bank, and Sidney Biesecker
|
(h)
|
10.8
|
HomeTrust Bank Director Emeritus Plan (“Director Emeritus Plan”)
|
(c)
|
10.8A
|
Director Emeritus Plan Joinder Agreement for Franklin V. Beam
|
(c)
|
10.8B
|
Director Emeritus Plan Joinder Agreement for William T. Flynt
|
(c)
|
10.8C
|
Director Emeritus Plan Joinder Agreement for J. Steven Goforth
|
(c)
|
10.8D
|
Director Emeritus Plan Joinder Agreement for Craig C. Koontz
|
(c)
|
10.8E
|
Director Emeritus Plan Joinder Agreement for Larry S. McDevitt
|
(c)
|
10.8F
|
Director Emeritus Plan Joinder Agreement for F.K. McFarland, III
|
(c)
|
10.8G
|
Director Emeritus Plan Joinder Agreement for Peggy C. Melville
|
(c)
|
10.8H
|
Director Emeritus Plan Joinder Agreement for Robert E. Shepherd, Sr.
|
(c)
|
10.9
|
HomeTrust Bank Defined Contribution Executive Medical Care Plan
|
(c)
|
10.10
|
HomeTrust Bank 2005 Deferred Compensation Plan
|
(c)
|
10.11
|
HomeTrust Bank Pre-2005 Deferred Compensation Plan
|
(c)
|
10.12
|
HomeTrust Bancshares, Inc. Strategic Operating Committee Incentive Plan
|
(i)
|
10.13
|
HomeTrust Bancshares, Inc. 2013 Omnibus Incentive Plan (“Omnibus Incentive Plan”)
|
(j)
|
10.14
|
Form of Incentive Stock Option Award Agreement under Omnibus Incentive Plan
|
(k)
|
10.15
|
Form of Non-Qualified Stock Option Award Agreement under Omnibus Incentive Plan
|
(k)
|
10.16
|
Form of Stock Appreciation Right Award Agreement under Omnibus Incentive Plan
|
(k)
|
10.17
|
Form of Restricted Stock Award Agreement under Omnibus Incentive Plan
|
(k)
|
10.18
|
Form of Restricted Stock Unit Award Agreement under Omnibus Incentive Plan
|
(k)
|
10.19
|
Fully Restated Employment Agreement between HomeTrust Bank and Anderson L. Smith
|
(l)
|
10.20
|
Amended and Restated Jefferson Federal Bank Supplemental Executive Retirement Plan
|
(m)
|
10.21
|
Money Purchase Deferred Compensation Agreement, dated as of September 1, 1987, between HomeTrust Bank and F. Edward Broadwell, Jr.
|
10.21
|
10.22
|
Retirement Payment Agreement, dated as of September 1, 1987, between HomeTrust Bank and F. Edward Broadwell, Jr., as amended
|
10.22
|
10.23
|
Retirement Payment Agreement, dated as of September 1, 1987, between HomeTrust Bank and Larry S. McDevitt, as amended
|
10.23
|
10.24
|
Retirement Payment Agreement, dated as of September 1, 1987, between HomeTrust Bank and Peggy C. Melville, as amended
|
10.24
|
10.25
|
Retirement Payment Agreement, dated as of August 1, 1988, between HomeTrust Bank and Robert E. Shepherd, Sr., as amended
|
10.25
|
10.26
|
Retirement Payment Agreement, dated as of May 1, 1991, between HomeTrust Bank and William T. Flynt, as amended
|
10.26
|
21.0
|
Subsidiaries of the Registrant
|
21.0
|
23.0
|
Consent of Dixon Hughes Goodman LLP
|
23.0
|
31.1
|
Certification of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.1
|
31.2
|
Certification of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 .
|
31.2
|
32.0
|
Certificate of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.0
|
101
|
The following materials from HomeTrust Bancshares’ Annual Report on Form 10-K for the year ended June 30, 2014, formatted in Extensible Business Reporting Language (XBRL): (a) Consolidated Balance Sheets; (b) Consolidated Statements of Income; (c) Consolidated Statements of Comprehensive Income; (d) Consolidated Statements of Changes in Stockholders' Equity; (e) Consolidated Statements of Cash Flows; and (f) Notes to Consolidated Financial Statements.
|
101
|
(a)
|
Filed as an exhibit to HomeTrust Bancshares’s Current Report on Form 8-K filed on June 10, 2014 (File No. 001-35593).
|
(b)
|
Attached as Appendix A to the joint proxy statement/prospectus filed by HomeTrust Bancshares on April 28, 2014 pursuant to Rule 424(b) of the Securities Act of 1933.
|
(c)
|
Filed as an exhibit to HomeTrust Bancshares’s Registration Statement on Form S-1 (File No. 333-178817) filed on December 29, 2011.
|
(d)
|
Filed as an exhibit to HomeTrust Bancshares’s Current Report on Form 8-K filed on September 25, 2012 (File No. 001-35593).
|
(e)
|
Filed as an exhibit to HomeTrust Bancshares’s Current Report on Form 8-K filed on January 29, 2014 (File No. 001-35593).
|
(f)
|
Filed as an exhibit to HomeTrust Bancshares’s Current Report on Form 8-K filed on November 27, 2013 (File No. 001-35593).
|
(g)
|
Filed as an exhibit to HomeTrust Bancshares’s Annual Report on Form 10-K for the fiscal year ended June 30, 2012 (File No. 001-35593).
|
(h)
|
Filed as an exhibit to Amendment No. One to HomeTrust Bancshares’s Registration Statement on Form S-1 (File No. 333-178817) filed on March 9, 2012.
|
(i)
|
Filed as an exhibit to HomeTrust Bancshares’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 (File No. 001-35593).
|
(j)
|
Attached as Appendix A to HomeTrust Bancshares’s definitive proxy statement filed on December 5, 2012 (File No. 001-35593).
|
(k)
|
Filed as an exhibit to HomeTrust Bancshares’s Registration Statement on Form S-8 (File No. 333-186666) filed on February 13, 2013.
|
(l)
|
Filed as an exhibit to HomeTrust Bancshares’s Current Report on Form 8-K filed on June 3, 2014 (File No. 001-35593).
|
(m)
|
Filed as an exhibit to Jefferson Bancshares, Inc.’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2008 (File No. 000-50347).
|
|
1.
|
The Account will be adjusted in accordance with Subsection I.E. of this Agreement to reflect those transactions involving investments on the List which occurred on or before such valuation date and for which no adjustment has yet been made under said subsection.
|
|
2.
|
The Account will be similarly adjusted to reflect all income, gains and losses not yet realized from the investment on the List, but which would be realized if such investments were sold or liquidated on such date. The sale or liquidation value of any such investment on such date (where the investment is not actually sold or liquidated) will be assumed to be the redemption or liquidation value which would be paid by the obligator, as stated in the instrument evidencing the investment, if such investment were actually surrendered for cash to the obligator on such date. In the absence of such a stated redemption or liquidation value the fair market value of the investment
|
|
1.
|
Installment Period
: In the event the Director’s Directorship with the Association terminates for any reason other than the death of the Director, then beginning on the Director’s 65th birthday, or upon the subsequent termination of his Directorship, should the Director terminate his Directorship after his 65th birthday the Association will commence to pay the Director retirement benefits in monthly installments over a ten (10) year period.
|
|
2.
|
Size of Installment
: Installments shall be paid to the Director in monthly installments of substantially equal amounts, an amount equal to the fair market value of the assets in the Account as of the installment date, divided by the sum of the present installment and the future installments remaining. Each monthly installment shall include the earnings on the remaining balance until the Account shall have been paid out in full. Notwithstanding the foregoing, the total amount payable to the Director shall be appropriately increased or decreased as the case may be, but not more than semi-annually, to reflect the appreciation in value and the net income or loss on the funds which remain vested in the Account.
|
|
3.
|
Death After Retirement
: In the event the Director dies after becoming entitled to receive the above specified installments (except for the six-month waiting period) but before any or all of such installments and gains realized have been paid the Association will pay or will continue to pay said unpaid amounts or the unpaid balance of said amounts guaranteed in Paragraph II.B.I to _________, or if said beneficiary is deceased, then payments shall be paid to the person or persons directed to under the Director’s Last Will and Testament or, in the absence of such a duly executed and probated Will, to the estate of the Director.
|
Clyde Savings and Loan Association
|
|
By
Milton Brown
(Seal)
|
|
Vice Chairman
|
|
Freeman E. Broadwell
(Seal)
|
|
(The Director)
|
|
ATTEST:
|
|
Peggy C. Melville
|
|
WITNESS:
Peggy C. Melville
|
Name of Spouse:
|
None
|
Peggy C. Melville
|
/s/ Freeman Edward Broadwell, Jr.
|
||
Witness
|
Signature of Director
|
||
February 14, 1992
|
|||
Date
|
|||
Agreed to by:
|
|||
CLYDE SAVINGS BANK
|
|||
BY:
|
/s/ Dana L. Stonestreet
|
||
TITLE:
|
Senior Vice President
|
||
DATE:
|
2-14-92
|
FULL NUMBER OF YEARS SERVED
AS DIRECTOR FROM DATE OF
EXECUTION OF THIS AGREEMENT
UNTIL TERMINATION OF DIRECTORSHIP
|
PERCENTAGE OF RETIREMENT
BENEFITS STATED IN SECTION
1 OF THIS AGREEMENT TO WHICH
THE DIRECTOR IS ENTITLED
|
|
2
|
40%
|
|
3
|
60%
|
|
4
|
80%
|
|
5
|
100%
|
Clyde Savings and Loan Association
|
|
By
Milton Brown
(Seal)
|
|
Vice Chairman
|
|
Freeman E. Broadwell
(Seal)
|
|
(The Director)
|
|
ATTEST:
|
|
Peggy C. Melville
|
|
WITNESS:
Peggy C. Me
lville
|
The Hometown Bank
|
Director
|
||
/s/ Dana L. Stonestreet
|
/s/ F. Ed Broadwell, Jr.
|
||
Dana L. Stonestreet, Exec. Vice President
|
F. Ed Broadwell
|
||
Chairman/CEO
|
|||
Attest:
|
|||
/s/ Peggy C. Melville
|
|||
Peggy C. Melville, Secretary
|
|
1.
|
Section 5(D) of the RPA, which provides for the right of the Association to accelerate payments, is hereby deleted.
|
|
2.
|
All other provisions of the RPA shall remain in full force and effect.
|
HOMETRUST BANK
|
|||
By:
|
/s/ Dana L. Stonestreet
|
||
Dana L. Stonestreet,
|
|||
President/COO
|
|||
/s/ F. Ed Broadwell, Jr.
|
|||
F. Ed Broadwell, Jr.,
|
|||
Director
|
HOMETRUST BANK
|
|||
By:
|
/s/ F. Ed Broadwell, Jr.
|
||
F. Ed Broadwell, Jr.
|
|||
Chairman/CEO
|
|||
/s/ Tony J. VunCannon, SVP, CFO
|
|||
Oficer
|
FULL NUMBER OF YEARS SERVED
AS DIRECTOR FROM DATE OF
EXECUTION OF THIS AGREEMENT
UNTIL TERMINATION OF DIRECTORSHIP
|
PERCENTAGE OF RETIREMENT
BENEFITS STATED IN SECTION
1 OF THIS AGREEMENT TO WHICH
THE DIRECTOR IS ENTITLED
|
|
2
|
40%
|
|
3
|
60%
|
|
4
|
80%
|
|
5
|
100%
|
ATTEST:
|
Clyde Savings and Loan Association
|
Peggy C. Melville
|
By
F. Ed Broadwell
(Seal)
|
President
|
|
WITNESS:
Peggy C. Melville
|
|
Larry McDevitt
(Seal)
|
|
(The Director)
|
The Hometown Bank
|
Director
|
||
/s/ F. Ed Broadwell
|
/s/ Larry McDevitt
|
||
F. Ed Broadwell, President
|
Larry McDevitt
|
||
Attest:
|
|||
/s/ Peggy C. Melville
|
|||
Peggy C. Melville, Secretary
|
|
1.
|
Section 5(D) of the RPA, which provides for the right of the Association to accelerate payments, is hereby deleted.
|
|
2.
|
All other provisions of the RPA shall remain in full force and effect.
|
HOMETRUST BANK
|
|||
By:
|
/s/ F. Ed Broadwell, Jr.
|
||
F. Ed Broadwell, Jr.
|
|||
Chairman/CEO
|
|||
/s/ Larry McDevitt
|
|||
Director
|
HOMETRUST BANK
|
|||
By:
|
/s/ F. Ed Broadwell, Jr.
|
||
F. Ed Broadwell, Jr.
|
|||
Chairman/CEO
|
|||
/s/ Larry M. McDevitt
|
|||
Director
|
FULL NUMBER OF YEARS SERVED
AS EMPLOYEE FROM DATE OF
EXECUTION OF THIS AGREEMENT
UNTIL TERMINATION OF DIRECTORSHIP
|
PERCENTAGE OF RETIREMENT
BENEFITS STATED IN SECTION
1 OF THIS AGREEMENT TO WHICH
THE EMPLOYEE IS ENTITLED
|
|
2
|
40%
|
|
3
|
60%
|
|
4
|
80%
|
|
5
|
100%
|
ATTEST:
|
Clyde Savings and Loan Association
|
Patricia M. Owen
|
By
F. Ed Broadwell
(Seal)
|
President
|
|
WITNESS:
Patricia M. Owen
|
|
Peggy C. Melville
(Seal)
|
|
(The Employee)
|
|
|
1.
|
Section 5(D) of the RPA, which provides for the right of the Association to accelerate payments, is hereby deleted.
|
|
2.
|
All other provisions of the RPA shall remain in full force and effect.
|
HOMETRUST BANK
|
|||
By:
|
/s/ F. Ed Broadwell, Jr.
|
||
F. Ed Broadwell, Jr.
|
|||
Chairman/CEO
|
|||
/s/ Peggy C. Melville
|
|||
Peggy C. Melville
Director
|
FULL NUMBER OF YEARS SERVED
AS DIRECTOR FROM DATE OF
EXECUTION OF THIS AGREEMENT
UNTIL TERMINATION OF DIRECTORSHIP
|
PERCENTAGE OF RETIREMENT
BENEFITS STATED IN SECTION
1 OF THIS AGREEMENT TO WHICH
THE DIRECTOR IS ENTITLED
|
|
2
|
40%
|
|
3
|
60%
|
|
4
|
80%
|
|
5
|
100%
|
ATTEST:
|
Clyde Savings and Loan Association
|
Peggy C. Melville
|
By
F. Ed Broadwell
(Seal)
|
President
|
|
WITNESS:
Peggy C. Melville
|
|
Robert E. Sheppard
(Seal)
|
|
(The Director)
|
The Hometown Bank
|
Director
|
||
/s/ F. Ed Broadwell
|
/s/ Robert Shepherd
|
||
F. Ed Broadwell, President
|
Robert Shepherd
|
||
Attest:
|
|||
/s/ Peggy C. Melville
|
|||
Peggy C. Melville, Secretary
|
|
1.
|
Section 5(D) of the RPA, which provides for the right of the Association to accelerate payments, is hereby deleted.
|
|
2.
|
All other provisions of the RPA shall remain in full force and effect.
|
HOMETRUST BANK
|
|||
By:
|
/s/ F. Ed Broadwell, Jr.
|
||
F. Ed Broadwell, Jr.
|
|||
Chairman/CEO
|
|||
/s/ Robert E. Shepherd
|
|||
Robert E. Shepherd
Director
|
HOMETRUST BANK
|
|||
By:
|
/s/ F. Ed Broadwell, Jr.
|
||
F. Ed Broadwell, Jr.
|
|||
Chairman/CEO
|
|||
/s/ Robert E. Shepherd
|
|||
Director
|
FULL NUMBER OF YEARS SERVED
AS DIRECTOR FROM DATE OF
EXECUTION OF THIS AGREEMENT
UNTIL TERMINATION OF DIRECTORSHIP
|
PERCENTAGE OF RETIREMENT
BENEFITS STATED IN SECTION
1 OF THIS AGREEMENT TO WHICH
THE DIRECTOR IS ENTITLED
|
|
2
|
40%
|
|
3
|
60%
|
|
4
|
80%
|
|
5
|
100%
|
ATTEST:
|
HOME SAVINGS AND LOAN ASSOCIATION OF EDEN (Association)
|
|
By
W. Thomas Flynt
(Seal)
|
||
President
|
||
W. Thomas Flynt
(Seal)
|
||
(The Director)
|
||
WITNESS:
Andrew T. Melhr
|
||
Corporate Secretary
|
||
|
1.
|
Section 5(D) of the RPA, which provides for the right of the Association to accelerate payments, is hereby deleted.
|
|
2.
|
All other provisions of the RPA shall remain in full force and effect.
|
HOMETRUST BANK
|
|||
By:
|
/s/ F. Ed Broadwell, Jr.
|
||
F. Ed Broadwell, Jr.
|
|||
Chairman/CEO
|
|||
/s/ William T. Flynt
|
|||
William T. Flynt
Director
|
HOMETRUST BANK
|
|||
By:
|
/s/ F. Ed Broadwell, Jr.
|
||
F. Ed Broadwell, Jr.
|
|||
Chairman/CEO
|
|||
/s/ W. Thomas Flynt
|
|||
Director
|
Parent
|
Subsidiary
|
Percentage
of
Ownership
|
State of Incorporation or Organization
|
|||
HomeTrust Bancshares, Inc.
|
HomeTrust Bank
|
100%
|
Federal
|
|||
HomeTrust Bank
|
Western North Carolina
Service Corporation
|
100%
|
North Carolina
|
|||
HomeTrust Bank
|
HomeTrust
Financial, Inc.
|
100%
|
North Carolina
|
|||
Exhibit 32
|
CERTIFICATION UNDER SECTION 906 OF
|
THE SARBANES-OXLEY ACT OF 2002
|
Date: September 15, 2014
|
/s/ Dana L. Stonestreet
|
Chairman of the Board, President and
|
|
Chief Executive Officer
|
|
Date: September 15, 2014
|
/s/ Tony J. VunCannon
|
Tony J. VunCannon
|
|
Senior Vice President, Chief Financial
|
|
Officer and Treasurer
|
|