Justin Dunn, Raleigh Market President, HomeTrust Bank

Invest: spoke with Justin Dunn, Raleigh market president of HomeTrust Bank, about the bank’s growth strategy, rising competition across the Triangle, and the evolving needs of middle-market companies. Dunn highlighted HomeTrust’s focus on recruiting culturally aligned talent, expanding its full-service capabilities, and using technology to improve efficiency while preserving relationship banking. “Bigger isn’t better; better is better,” Dunn said.

What changes over the past year have most influenced how HomeTrust Bank serves businesses in Raleigh and other high-growth Southeastern markets?

We are focused on continuing to grow the bank, which involves not only acquiring and retaining customers, but also attracting and developing talent. That has been our focus over the last 12 months: expanding the bank’s reach by continuing to build our full-service team, including business bankers, commercial relationship managers, and the support teams they need to succeed. We operate in several metropolitan and emerging markets, but we are not on every corner in those larger markets. We can build awareness of HomeTrust by reaching more customers and prospects while hiring additional calling officers and support staff. 

What patterns are you seeing across the markets where HomeTrust operates or is expanding?

One clear indicator of growth is the increasing competition in the markets we serve. Many new banks are coming into the Raleigh market. Our office has been here for about 12 years, and our team collectively has significant experience in the area. Many of these institutions are pursuing the same clients and opportunities. We are seeing considerable activity across industries, including life sciences, housing, and professional services.

Even in the current environment, offices are still being built to support that growth. Raleigh and its surrounding communities are well-positioned to experience continued expansion, which is why so many banks are entering the market.

How are the needs of middle-market companies changing, and what do they expect from a commercial bank today?

Middle-market companies expect banking partners to support their growth with creative solutions for projects and capital expenditures, along with flexibility and speed. Responsiveness is a key consideration.

We are well positioned to compete where it matters most. Our size, experience, and flexibility allow us to offer a compelling alternative to larger banks while remaining competitive with smaller institutions. With relatively few banks in the $4.5 billion to $5 billion asset range, we occupy a distinctive position in the market and are well positioned to serve middle-market companies.

What does successful relationship banking look like beyond increasing loans or deposits?

Success requires the business acumen to develop new relationships, along with a balance sheet capable of supporting our customers’ growth. We have those capabilities.

Successful relationship banking means addressing the full range of a customer’s financial needs. That includes loans, deposits, and treasury management services, but the relationship can extend much further. We aim to build deeper relationships with our customers and learn how else we can help them. Whether financing a home, saving for future goals, or managing everyday personal expenses, we offer a range of products and services.

How would you describe the financial health of small and middle-market companies in the Triangle?

There are many strong balance sheets across the market, and consolidation continues to increase. Investors and companies still have significant capital available to fund investments and acquisitions. This activity spans banking, small business, and homebuilding, with effects being felt across nearly every industry in the Triangle Area.

That trend reflects the level of investment and economic activity in the region. Everybody wants to be here, which also helps explain why more banks are entering the market. For the last five or six years, banks have been focusing on managing and expanding their balance sheets. With several challenges related to COVID-19 and interest rates now behind us, we are beginning to see normalization. Growth is the name of the game, and consolidation reflects the activity taking place across the area.

How is HomeTrust investing in people and strengthening its culture as it grows?

HomeTrust has 33 fundamentals that guide the organization, and we consider those principles when evaluating opportunities and recruiting talent. Networking is also an important part of that process. I have worked in banking for almost 24 years, and one lesson is that you never know who you may eventually work for or work with.

We apply that mindset, together with our fundamentals, to finding the right people. Someone may have 25 years of experience and a large book of business, but if that person is not a cultural fit, we will pass. We are looking for people who align with our culture and expectations.

The right candidate isn’t always the flashiest or most experienced. It could be someone rising through the ranks who wants to grow alongside the bank, believes in our fundamentals, and is ready for us to invest in that development. One of my favorite fundamentals is “assume positive intent.”

Where can artificial intelligence and other technologies enhance the banking experience without diminishing personal relationships?

Our team is continually researching and exploring how AI will shape the future of banking.

The possibilities are evolving quickly, and we’re excited to see how we can utilize it within our company.

We currently use several tools for tasks ranging from creating worksheets and analyzing financial spreads to assembling packages for our credit team. AI could change many everyday activities, but I believe we will use it primarily to improve efficiency rather than replace employees.

One thing I don’t believe AI will replace is the importance of relationships. Personalized services are one of the ways we seek to differentiate ourselves when speaking with prospective customers. If institutions understand AI and use it appropriately, it can improve efficiency, but it won’t replace conversations or face-to-face interactions. That human component will remain important in banking.

What will define HomeTrust’s next phase of growth in Raleigh and across the Southeast?

We intend to continue building on our growth. Our leadership emphasizes maintaining flexibility and controlling our own destiny. We have a strong balance sheet, operate in the right markets, and take what we consider to be the right risks. That could involve entering new markets or completing acquisitions. The goal is to continue expanding at a pace that makes sense for HomeTrust. 

We have evolved into a full-service bank with a broad range of capabilities. Beyond personal and small-business banking, our teams can support customers through services such as wealth management and specialized industry banking. Earlier this year, we launched our Healthcare Banking Division, and we are excited to see what that team does. 

We want more customers to understand the breadth of services available to them throughout the different stages and milestones of their financial lives. The objective is to expand our reach, strengthen the HomeTrust brand, and continue identifying purposeful growth opportunities. Bigger isn’t better; better is better.