HomeTrust Bancshares, Inc.HTB
HomeTrust Bancshares, Inc. Commitments Disclosure
Commitments and Contingencies
Loan Commitments - Legally binding commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. In the normal course of business, there are various outstanding commitments to extend credit that are not reflected in the consolidated financial statements.
The table below presents details of loan commitments outstanding as of the dates indicated:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Variable rate commitments | $ | 87,259 | $ | 56,922 | |||||||
Fixed rate commitments(1) | 34,716 | 28,096 | |||||||||
| Total loan commitments | $ | 121,975 | $ | 85,018 | |||||||
| Range of fixed interest rates | 4.12% - 9.75% | 4.14% - 10.25% | |||||||||
Undisbursed portions of construction loans | $ | 225,617 | $ | 145,523 | |||||||
Pre-approved but unused lines of credit(2) | $ | 831,298 | $ | 712,274 | |||||||
(1)Fixed rate commitments had terms ranging from to 30 years as of each date presented.
(2)Principally second mortgage home equity loans and overdraft protection loans.
The commitments presented in the above table represent the Company’s exposure to credit risk and, in the opinion of management, have no more than the normal lending risk that the Company commits to its borrowers.
The Company has two types of commitments related to certain one-to-four family loans held for sale: rate lock commitments and forward loan commitments. Rate lock commitments are commitments to extend credit to a customer that has an interest rate lock and are considered derivative instruments. The rate lock commitments do not qualify for hedge accounting. In order to mitigate the risk from interest rate fluctuations, the Company enters into forward loan sale commitments such as TBAs, mandatory delivery commitments with investors, or best efforts forward sale commitments with investors. The fair value of these interest rate lock commitments was not material at December 31, 2025 or 2024.
Equity Investment Commitments - As of December 31, 2025, the Company had committed $32,000 across ten SBIC investments with $9,983 remaining to be drawn. As of December 31, 2024, the Company had committed $28,000 across nine SBIC investments with $8,598 remaining to be drawn. Similarly, as of December 31, 2025, the Company had committed $10,000 towards a solar tax equity investment with $2,519 remaining to be drawn. No such commitment existed as of December 31, 2024. Although the remaining capital commitments may or may not be called in the future, under the terms of the associated agreements, the Company's exposure will not extend beyond the amount of the original commitments.
Guarantees - Standby letters of credit obligate the Company to meet certain financial obligations of its customers, if, under the contractual terms of the agreement, the customers are unable to do so. The financial standby letters of credit issued by the Company are irrevocable and payment is only guaranteed upon the borrower’s failure to perform its obligations to the beneficiary. Total commitments under standby letters of credit as of December 31, 2025 and 2024 were $55,491 and $53,226, respectively. There was no liability recorded for these letters of credit at December 31, 2025 or 2024.
Litigation - From time to time, the Company is involved in litigation matters in the ordinary course of business. These proceedings and the associated legal claims are often contested, and the outcome of individual matters is not always predictable. These claims and counter claims typically arise during the course of collection efforts on problem loans or with respect to actions to enforce liens on properties in which the Company holds a security interest. The Company is not a party to any pending legal proceedings that management believes would have a material adverse effect on the Company’s financial condition or results of operationsHistorical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Sep 11, 2023 | |
| 2022 | Sep 12, 2022 | |
| 2021 | Sep 10, 2021 | |
| 2020 | Sep 11, 2020 | |
| 2019 | Sep 13, 2019 | |
| 2018 | Sep 13, 2018 | |
| 2017 | Sep 12, 2017 | |
| 2016 | Sep 13, 2016 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.