HomeTrust Bancshares, Inc.HTB
HomeTrust Bancshares, Inc. Income Taxes Disclosure
Income Taxes
Income tax expense from continuing operations consisted of the following for the periods indicated:
| Year Ended December 31, | Six Months Ended December 31, 2023 | Year Ended June 30, 2023 | |||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Current | |||||||||||||||||||||||
| Federal | $ | 14,339 | $ | 11,970 | $ | 7,910 | $ | 11,119 | |||||||||||||||
| State | 2,120 | 2,035 | 1,114 | 1,874 | |||||||||||||||||||
| Total current expense | 16,459 | 14,005 | 9,024 | 12,993 | |||||||||||||||||||
| Deferred | |||||||||||||||||||||||
| Federal | 37 | 829 | (1,450) | (377) | |||||||||||||||||||
| State | 95 | 272 | (188) | (56) | |||||||||||||||||||
| Total deferred expense (benefit) | 132 | 1,101 | (1,638) | (433) | |||||||||||||||||||
| Total income tax expense | $ | 16,591 | $ | 15,106 | $ | 7,386 | $ | 12,560 | |||||||||||||||
The Company does not have any material pre-tax income or income tax expense in foreign jurisdictions.
The following table reconciles income tax expense based on the federal statutory rate to the actual effective tax rate by amount and percentage for the period indicated, consistent with the disclosure requirements of ASU 2023-09:
| Year Ended December 31, 2025 | |||||||||||
| Amount | Percent | ||||||||||
| $ | 17,001 | 21.0 | % | ||||||||
| Increase (decrease) resulting from: | |||||||||||
State income tax expense, net of federal effect(1) | 1,770 | 2.2 | |||||||||
Tax credits(2) | (474) | (0.6) | |||||||||
| Nontaxable and nondeductible items: | |||||||||||
| Tax exempt income, net of expense disallowance | (1,178) | (1.5) | |||||||||
| Other | (180) | (0.2) | |||||||||
| Other adjustments | (348) | (0.4) | |||||||||
| Income tax expense and effective income tax rate | $ | 16,591 | 20.5 | % | |||||||
(1)State taxes in North Carolina and Tennessee made up the majority (greater than 50%) of the tax effect in this category.
(2)Includes the net effect from income tax benefits and amortization under the proportional amortization method.
The following table reconciles income tax expense based on the federal statutory rate to the actual effective tax rate by amount and percentage for the periods indicated, consistent with the disclosure requirements prior to the adoption of ASU 2023-09:
| Year Ended December 31, 2024 | Six Months Ended December 31, 2023 | Year Ended June 30, 2023 | |||||||||||||||||||||||||||||||||
| Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||||||||||||||
| $ | 14,681 | 21.0 | % | $ | 7,494 | 21.0 | % | $ | 12,004 | 21.0 | % | ||||||||||||||||||||||||
| Increase (decrease) resulting from: | |||||||||||||||||||||||||||||||||||
| Tax exempt income | (1,799) | (2.6) | (734) | (2.1) | (830) | (1.5) | |||||||||||||||||||||||||||||
| State tax, net of federal benefit | 1,883 | 2.7 | 693 | 1.9 | 1,417 | 2.5 | |||||||||||||||||||||||||||||
| Other | 341 | 0.5 | (67) | (0.1) | (31) | — | |||||||||||||||||||||||||||||
| Total | $ | 15,106 | 21.6 | % | $ | 7,386 | 20.7 | % | $ | 12,560 | 22.0 | % | |||||||||||||||||||||||
The following table presents income taxes paid (net of refunds received) for the period indicated, consistent with the disclosure requirements of ASU 2023-09:
| Year Ended December 31, 2025 | |||||
| Federal | $ | 17,652 | |||
| State and local* | 1,680 | ||||
| Total | $ | 19,332 | |||
* No jurisdictions exceeded the threshold for separate disclosure for the period presented.
The sources and tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at December 31, 2025 and 2024 are presented below:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Deferred tax assets | |||||||||||
| Allowance for credit losses | $ | 10,593 | $ | 11,206 | |||||||
| Deferred compensation and post-retirement benefits | 6,621 | 7,181 | |||||||||
| Net operating loss carryforward | 1,352 | 1,712 | |||||||||
| Discount from business combinations | 171 | 438 | |||||||||
| Unrealized loss on debt securities held for sale | — | 503 | |||||||||
| Share-based compensation expense | 1,074 | 1,058 | |||||||||
| Operating lease liability | 2,101 | 2,233 | |||||||||
| Other | 2,877 | 2,767 | |||||||||
| Total deferred tax assets | 24,789 | 27,098 | |||||||||
| Deferred tax liabilities | |||||||||||
| Depreciable basis of fixed assets and operating lease equipment | (9,981) | (11,679) | |||||||||
| Deferred loan costs | (500) | (534) | |||||||||
| FHLB stock, book basis in excess of tax | (234) | (91) | |||||||||
| BOLI available for redemption | (1,443) | (1,346) | |||||||||
| Operating lease ROU asset | (1,772) | (1,886) | |||||||||
| Unrealized gain on debt securities held for sale | (172) | — | |||||||||
| Other | (765) | (827) | |||||||||
| Total deferred tax liabilities | (14,867) | (16,363) | |||||||||
| Net deferred tax assets | $ | 9,922 | $ | 10,735 | |||||||
The Company had federal net operating loss carryforwards ("NOLs") of $6,437 and $8,047 as of December 31, 2025 and 2024, respectively, with a recorded tax benefit of $1,352 and $1,712 included in deferred tax assets. The majority of these NOLs will expire for federal tax purposes from 2028 through 2035, if not previously used.
Retained earnings at both December 31, 2025 and 2024 include $19,570 representing pre-1988 tax bad debt reserve base year amounts for which no deferred tax liability has been provided since these reserves are not expected to reverse and may never reverse. Circumstances that would require an accrual of a portion or all of this unrecorded tax liability are a failure to meet the definition of a bank, dividend payments in excess of current year or accumulated earnings and profits, or other distributions in dissolution or liquidation of the Bank. The Company is no longer subject to examination for federal purposes for tax years prior to 2022 and for state purposes for tax years prior to 2021.
Historical 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 Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.