Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — Gulf South Bank Conference 2022
27 slides from Hometrust Bancshares's conference presentation, Apr 29, 2022
Slide 1: May 2-3, 2022 Gulf South Bank Conference
May 2-3, 2022 Gulf South Bank Conference
Slide 2: Forward Looking Statements and Non-GAAP Disclosure
Certain matters in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to our financial condition, results of operations, plans, objectives, future performance or business. Forward-looking statements
Slide 3: HomeTrust Bancshares, Inc. Overview
• Financial data as of March 31, 2022 • Market data as of March 31, 2022 • Shares repurchased from February 19, 2013 to March 31, 2022 3 HomeTrust Bancshares, Inc. Overview $3.5B Assets NASDAQ: HTBI Headquarters: Asheville, NC $2.7B/$3.1B Loans/Deposits Founded: 1926 Locations: 32 128% Price to TBV
Slide 4: Investment Highlights
4 Footprint in attractive metro markets experiencing growth rates above the national average (See Pages 9-10) Successful transition from a mutual/thrift to a commercial bank (See Pages 6-7 & 11-14) • Expansion of lines of business, adding further diversity to our loan portfolio • Strong experienced
Slide 5: Profitability Improvements & Balance Sheet Restructuring
5 Repayment of Long-Term Borrowings • $475 million in long-term debt retired in March and June 2021 • Estimated 3.6 year earn back of the $22.7 million prepayment penalty • $5.7 million in estimated annual interest expense reductions Branch Closures • On September 16, 2021, closed nine branches in N
Slide 6: Business Transformation: Phases of Progress
6 Greenville, SC (2013) Tri-Cities and Knoxville, TN (2014) Charlotte, NC (2014) Roanoke, VA (2014) Raleigh, NC (2015) Re-engineered of CML LOB (2014) Introduced Indirect Auto (2014) Re-engineered Mtg LOB (2016) Re-engineered Treasury Mgmt (2016) Introduced SBA and Equipment Finance (2018) Introduce
Slide 7: Transformation timeline: from mutual to commercial bank
7 Pre-Stock Conversion Retail / Consumer – Limited Offerings Mortgage – Old S&L Model Commercial – Very Limited Capabilities Stock Conversion July – Converted from mutual to stock form with focus on commercial banking Equipment Finance February – Launched line of business SBA Lending September – Lau
Slide 8: Pyramid of Success
8 High Performance Deposit Growth Maturing Lines of Business Business Transformation Engaged Employees Enterprise Risk Management Franchise and Line of Business Investments Our Results Our Business Objectives Our Foundation Pyramid of Success
Slide 9: Geographic Expansion
Geographic Expansion LOCATIONS North Carolina, South Carolina, Tennessee and Virginia g ROANOKE O EDEN OREIDSVILLE © LEXINGTON © ASHEVILLE = °° RALEIGH ie} OCORNELIUS ies © CHERRYVILLE CLYDE wavnesvite 8 HENDERSONVILLE © O SHELBY TRYON CD © CHARLOTTE GREENVILLE
Slide 10: Geographic Expansion: Attractive Metro Markets
* S&P Global Market Intelligence for MSA Demographics (growth projected for 2022 to 2027), National Averages: 3.2% Projected Population Growth, 12.1% Projected Household Income Growth, and $72,465 Median Household Income 10 State Market Projected Population Growth* Projected Household Income Growth*
Slide 11: Hybrid Branch Strategy
11 “Branch Heavy” Consumer Markets Asheville Roanoke Tri-Cities Branch Manager & Consumer Banker Introducing Micro-Business Loans Hybrid Branch Strategy Business Banking Centers Charlotte Greenville Knoxville Raleigh Branch Manager & Small Business Banker Small Business Banking & Professional Bankin
Slide 12: Loan Portfolio Transformation: Transition to a Commercial Bank
• Excludes PPP loans 12 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Commercial RE (NOO) Commercial RE (OO) Construction and Development Equipment Finance Other Commercial 1-4 Family HELOCs and Other Consumer 2016 2017 2018 2019 2020 2021 2022 (Dollars in thousands, by
Slide 13: Portfolios to Highlight: Non-Owner Occupied CRE & Equipment Finance
13 (Dollars in thousands, as of March 31, 2022) $- $20,000 $40,000 $60,000 $80,000 $100,000 Equipment Finance (“EF”) Composition Portfolios to Highlight: Non-Owner Occupied CRE & Equipment Finance 51%49% EF Southeast Footprint Outside Southeast Southeast 73% 27% EF National Footprint East of Mississ
Slide 14: Move Towards Core Deposits
• Deposit balances as of fiscal year end; Cost of deposits are averages for the fiscal year 14 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 2018 2019 2020 2021 2022 Avg. Cost of Deposits $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 Time Deposits Money Market/Saving
Slide 15: Digital Customer Experience
• The Zelle offering was launched during the quarter ended September 30, 2020 • Digital Banking Transfers includes both mobile and online banking 15 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 $45,000 $120,000 $195,000 $270,000 $345,000 March '20 March '21 March '22 Digital Banking Tra
Slide 16: Digital Customer Experience (Continued)
16 • Core banking system (2020 conversion) intentionally selected for its open architecture to quickly integrate future FinTech partnerships • Integrated 2nd FinTech partner in March 2022 focused on small business lending • 3rd FinTech partner focused on consumer lending was recently approved • Inte
Slide 17: Strong Asset Quality and Credit Discipline
* Includes $6 million charge-off for one commercial relationship. Excluding that charge-off, the Bank had net recoveries of $669,000. ** Reflects the adoption of CECL on July 1, 2020. 17 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2018 2019* 2020 2021 3/31/22 Net
Slide 18: Strong Capital Position to Support Continued Growth
18 0% 2% 4% 6% 8% 10% 12% 14% 2018 2019 2020 2021 3/31/22 Common Equity Tier I Capital (to Risk-Weighted Assets) CET I Capital Minimum to Be Well Capitalized (Dollars in thousands, by fiscal year) 0% 2% 4% 6% 8% 10% 12% 14% 2018 2019 2020 2021 3/31/22 Tier I Capital (to Total Adjusted Assets) Tier I
Slide 19: Capital Strategy: Stock Buybacks and Dividends
• 11th Buyback was approved on February 28, 2022 • First dividend declared November 2018 19 Stock Buybacks Buybacks Total Buybacks as a % of O/S Shares as of 2/19/13 Number of Shares Total Cost ($) Average Cost Per Share ($) Total repurchased through March 2022 43.6% 9,444,054 $192,556,000 $20.39 Sh
Slide 20: Improvement in Profitability Metrics
20 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $- $10,000 $20,000 $30,000 $40,000 $50,000 2018 2019 2020 2021 2022 Annualized Adjusted Earnings Performance Adjusted Net Income Adjusted Diluted EPS 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 2018 2019 2020 2021 2022 Annualized Adjusted Return
Slide 21: Growth in Noninterest Income
21 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 2018 2019 2020 2021 2022 Annualized Noninterest Income Noninterest Income % of Total Assets Service charges on deposits Loan income and fees Gain on sale of loans held for sale BOLI
Slide 22: Loans originated for sale and noninterest income sources
22 • Mortgage Banking – 1-4 family and jumbo loans for sale • Began selling pools of jumbo mortgages in FY 2022 • Sold $406.5 million, $204.0 million, and $204.1 million in loans over fiscal years 2020, 2021 and 2022 (3 quarters) • HELOCs Originated for Sale • Loans originated in HTB’s name, sourced
Slide 23: Contact information
Dana Stonestreet Chairman and CEO dana.stonestreet@htb.com Hunter Westbrook President and Chief Operating Officer hunter.westbrook@htb.com Tony VunCannon EVP / Chief Financial Officer / Corporate Secretary / Treasurer tony.vuncannon@htb.com 10 Woodfin Street Asheville, NC 28801 (828) 259-3939 www.ht
Slide 24: Quarterly financial summary
24 (Dollars in thousands, except per share amounts) Earnings (GAAP) 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Net income 8,023$ 11,078$ 10,527$ (7,408)$ 7,869$ Earnings per share (EPS) - diluted 0.51$ 0.68$ 0.65$ (0.46)$ 0.48$ Return on assets (ROA) 0.92% 1.24% 1.20% (0.81%) 0.84% Net inter
Slide 25: Appendix – Qtrly Net Interest Margin
25 3.02% 3.10% 3.41% 3.33% 3.39% 2.82% 2.96% 3.30% 3.25% 3.33% 2.60% 2.85% 3.10% 3.35% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Net Interest Margin Reported Core • Core net interest margin excludes accretion income and PPP and other loan fees Appendix – Qtrly Net Interest Margin
Slide 26: Appendix – Non-GAAP Reconciliation
26 Set forth below is a reconciliation to GAAP of our efficiency ratio: Set forth below is a reconciliation to GAAP of tangible book value, tangible book value per share, and price to tangible book value: Nine Months Ended (Dollars in thousands) 3/31/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Noni
Slide 27: Appendix – Non-GAAP Reconciliation (Continued)
27 Set forth below is a reconciliation to GAAP net income, EPS, ROA, and ROE as adjusted to exclude certain state tax expense, adjustments for the change in federal tax law, gain on sale of premises and equipment, branch closure and restructuring expenses, and prepayment penalties on borrowings: In
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