HomeTrust buybacks gained a new authorization for 5% of outstanding shares after the bank completed its previous repurchase program earlier in October 2026. In its October 21 quarterly update, HomeTrust Bancshares also reported stronger preliminary earnings and outlined progress toward its pending acquisition of Blue Ridge Bankshares, agreed in August.
Key Takeaways
- HomeTrust completed its August repurchase program earlier in October and authorized an additional 5% of outstanding shares.
- The Blue Ridge acquisition is expected to close early in the first quarter of 2027, subject to approvals and closing conditions.
- Third-quarter net income reached $18.0 million, supported by higher net interest income and a tax benefit.
Table of Contents
- HomeTrust buybacks accelerate ahead of the merger
- Blue Ridge deal targets an early-2027 closing
- Quarterly profit benefits from wider margin and tax credits
- Conclusion
HomeTrust buybacks accelerate ahead of the merger
HomeTrust’s third-quarter results announcement confirmed that the completed repurchase program began in August 2026. The additional 5% authorization represents permission to buy more shares, rather than purchases already completed.
During the quarter ended September 30, HomeTrust repurchased 923,897 shares at an average price of $48.03. That compared with 153,606 shares at an average price of $46.31 in the preceding quarter.
Chief Executive Officer Hunter Westbrook said the repurchases deployed excess capital and reflected management’s view that the shares were undervalued. That assessment is management’s opinion, not an independently established valuation.
| Item | Details |
|---|---|
| Declared quarterly dividend | $0.15 per common share |
| Dividend record date | November 12, 2026 |
| Dividend payment date | November 25, 2026 |
| Nine-month net income | $50.4 million, compared with $48.2 million a year earlier |
| Nine-month diluted EPS | $3.04, compared with $2.79 a year earlier |
Blue Ridge deal targets an early-2027 closing
HomeTrust signed its definitive merger agreement with Blue Ridge on August 16, 2026. The proposed transaction would expand its Virginia operations and create a commercial bank with more than $7 billion in assets and over 60 locations across the Southeast.
Both companies’ boards have approved the transaction, and all required regulatory applications have been filed. Completion remains subject to regulatory and shareholder approvals and customary closing conditions.
Under the agreement, each eligible Blue Ridge share would convert into 0.086 of a HomeTrust share, with cash paid instead of fractional shares. Blue Ridge shareholders are expected to own approximately 35% of the combined company. The transaction’s total value will fluctuate with HomeTrust’s share price before closing.
Quarterly profit benefits from wider margin and tax credits
Preliminary third-quarter net income increased to $18.0 million, or $1.11 per diluted share, from $15.6 million, or $0.94 per diluted share, in the second quarter. Net interest margin widened by five basis points to 4.46%.
Net interest income increased by approximately $1.2 million from the preceding quarter. Results also included a $1.9 million federal income tax benefit from purchased renewable-energy tax credits, while merger-related expenses totaled $904,000.
The profit improvement therefore reflected both stronger interest income and a tax benefit, rather than lending-margin expansion alone. The provision for credit losses declined to $805,000 from $920,000.
Conclusion
The next scheduled shareholder event is the November 25 dividend payment, following the November 12 record date. For the Blue Ridge transaction, the remaining milestones are regulatory and shareholder approvals ahead of the expected early-first-quarter 2027 closing.
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