Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — Shareholder Meeting (November 2013)
43 slides from Hometrust Bancshares's shareholder meeting presentation, Nov 25, 2013
Slide 1: Annual Meeting
ANNUAL MEETING HomeTrust Ltt better here
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 0 TQS Certain matters in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to our financial condition, resuts of operations, plans, objectives, future performance or b
Slide 3: Strategic Operating Committee
STRATEGIC OPERATING COMMITTEE ee Leader Role Age Ed Broadwell Chairman & Chief Executive Officer 74 Dana Stonestreet President & Co-Chief Executive Officer 60 35 25 Tony VunCannon Senior Vice President & Chief Financial 48 26 21 Officer Hunter Westbrook Senior Vice President & 50 26 2 Chief Banking
Slide 4: HomeTrust Bank Profile
HOMETRUST BANK PROFILE ~ | i ________ ~—___—__“4 Founded in 1926 $1.7 billion in assets (as of 9/30/13) $368 million of capital (as of 9/30/13) 17 years of experience combining banks Largest bank headquartered in WNC 327 employees 21 branches
Slide 5: Our Franchise Footprint
OUR FRANCHISE FOOTPRINT Vig 4 Just better here
Slide 6: Conversion to Public Company
CONVERSION TO PUBLIC COMPANY ~ | i ________ ~—___“4 ¢ Raised over $211 million @ $10 per share * Began trading on July 11, 2012 * Symbol HTBI ¢ First Trade $11.25 * Closing Price on September 30, 2013 - $16.50 * Up 65% from our original $10 per share ¢ Up 47% from our first trade
Slide 7: One Year Stock Performance
ONE YEAR STOCK PERFORMANCE ~ Sia _______ ~~" “4 HomeTrust Bancshares, Inc. (NASDAQ: HTBI) HTB! (+69.60%) MENASDAQ (+17.26%) BM S&P Bank (+24.60%) BL SBP 500 (+19.74%) ML DJIA(+17.83%) 80.00% 70.00% 60.00% 50.00% 40.00% 2 30.00% 20.00% 10.00% Lf 0.0096 1 =a JUL1O JUL AUG SEP OCT NOV DEC JAN FEB MAR A
Slide 8: Financial Information
x FINANCIAL INFORMATION TONY VUNCANNON CHIEF FINANCIAL OFFICER
Slide 9: Year-End June 30, 2013 Highlights
YEAR-END JUNE 30, 2013 HIGHLIGHTS ~ Sia _______ ~~" “4 + Net income of $9.0 million, compared to $4.5 million in the prior year « Earnings per share (EPS) = $.45 * Provision for loan losses of $1.1 million, down $14.5 million (93%) « Mortgage banking income of $5.1 million, up 33% *« Repayment of al
Slide 10: Quarter Ended September 30, 2013 Highlights
QUARTER ENDED SEPTEMBER 30, 2013 x HIGHLIGHTS Fit __| 4 * Net income of $3.3 million, compared to prior year income of $1.2 million « EPS $.17 versus $.06 in the prior year * Recovery of loan losses of $2.3 million, compared to provision of $1.5 million in the prior year * Mortgage banking income of
Slide 11: Net Income
NET INCOME x $9.0. -$14.7 2009 2010 2011 2012 2013 2014 (3 mos. ended For the year ended June 30, 9/30/13) In millions
Slide 12: Net Interest Income
NET INTEREST INCOME x $55.7 $53.1 $53.2 $51.6 $45.7 $42.2 2009 2010 2011 2012 2013 2014 Annualized For the year ended June 30, in yellow In millions
Slide 13: Net Interest Margin
NET INTEREST MARGIN x 4.02% 4.00% 3.50% -3.32% 3.334 3.52% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2009 2010 2011 2012 2013 2014 (3 mos. ended 9/30/13) For the year ended June 30,
Slide 14: Provision for Loan Losses
PROVISION FOR LOAN LOSSES x $40.0 $38.6 $15.0 $15.6 $1.1 $0.0 ee ee -$5.0 $2.3 2009 2010 2011 2012 2013 2014 (3 ded For the year ended June 30, is ‘5)30/13) ‘ In millions
Slide 15: Loan Portfolio Mix
LOAN PORTFOLIO MIX x Sia _______ ~~" “4 $1,400.0 s1222 54g00 Wal" 54.039 : 1,198 . $1,200.0 5 = 1-4 Family $1,000.0 7 Cornmnercal Real state $800.0 = Construction/ Land/ . Development $600.0 m= Home Equity $400.0 m= Municipal Leases $ : = Other 200.0 $0.0 T T T T T 1 J © nS xv No wa a a a a x As of
Slide 16: Total Loans Originated
TOTAL LOANS ORIGINATED x $600.0 —gs@p $79 soo 2 oe oe 2009 2010 2011 2012 2013 2014 (3 mos. ended 9/30/13) For the year ended June 30, In millions
Slide 17: Total Deposits
TOTAL DEPOSITS x $1,000 $800 $600 400 : s654 pd $630 Lane 200 $0 T 1 2009 2010 2011 2012* 2013 9/30/2013 = Core Deposits (checking, savings, money market) ™=Time Deposits As of June 30, In millions *Excludes $227 million in stock conversion escrow account
Slide 18: Checking Accounts
CHECKING ACCOUNTS x $300 $293 $256 $250 $234 $204 $158 $0 T T T T ; 1 2009 2010 2011 2012 2013 9/30/2013 As of June 30, In millions
Slide 19: Capital Ratios
CAPITAL RATIOS x ww DS 25.00% 22% 20.00% 15% 15.00% 10.00% 5% 5.00% 0.00% T T 1 Leverage Ratio Tier! Risk-Based Total Risk-Based Capital Ratio Capital Ratio = Well-Capitalized by Regulators SHTB Bank only — As of September 30, 2013 (Excludes HTBI Capital of $100 Million)
Slide 20: Asset Quality
ASSET QUALITY
Slide 21: NPAs to Total Assets
NPAS TO TOTAL ASSETS ~ 9 5.1% 5.0% 5.0% 47% 4.0% 3.9 3.8% 3.0% 20% 2.1% 0% 1.0% 0.0% T T T 2009 2010 2011 2012 2013 9/30/2013 =REO sLoans As of June 30,
Slide 22: Non-Performing Loans: By Type
NON-PERFORMING LOANS: BY TYPE ~ $68.6 $67.7 $64.2 = Other = Commercial Real Estate m= Home Equity m= 1-4 Family = Construction/land/ development 2011 2012 2013 09/30/13 As of June 30, In millions
Slide 23: Non-Performing Loans
NON-PERFORMING LOANS x > <i,,_____ —__~_~_¥4 $72.4 $71.7 Q2 Q3 Q4 Qi 12/31/2012 3/31/2013 6/30/2013 == 9/30/2013 =Delinquent Current * In millions udes loans which are current on loan payments but are classified as non-performing due to impairments or TDRs
Slide 24: Net Loans Charged-Off
NET LOANS CHARGED-OFF x $34.4 = Other $30.0 $30.6 . = Commercial Real $25.0 $219 Estate $20.0 = Home Equity $15.0 m 1-4 Family $10.0 $5.0 - : $4.4 = Construction/Land/ = = $0.6 Development $0.0 7 7 7 7 | 2009 2010 2011 2012 «2013-2014 (3 ided For the year ended June 30, . ‘G)30/13) In millions
Slide 25: Loan Portfolio — Change in Risk Profile
LOAN PORTFOLIO — CHANGE IN RISK PROFILE 96" Fi _| 4 Loan composition has dramatically shifted since the 2008 peaks of construction & land/lots and construction & development loans. % of Change Since 2008 6/30/2008 9/30/2013 _ Total Peaks IL-4 Family ls 411,833 34.5% |$ 599,485 50.0% |$ 187,652 _45.6
Slide 26: Allowance for Loan Losses to Total Loans
ALLOWANCE FOR LOAN LOSSES TO TOTAL LOANS x 3.77% 3.23% 2.85Y a 2.75% 2.43% 2.04% : T 1 2009 2010 2011 2012 2013 9/30/2013 As of June 30,
Slide 27: 2012-2013 Accomplishments
x 2012-2013 ACCOMPLISHMENTS HUNTER WESTBROOK, CHIEF BANKING OFFICER
Slide 28: BankGreenville Acquisition
BANKGREENVILLE ACQUISITION x es Announced - May 2013 Effective Date - July 31, 2013 Computer system conversion — November 2013 Total assets -$102 million Began in 2005 One office, located on Woodruff Rd in Greenville, SC Strong in commercial/small business lending President and CEO has almost 30 yea
Slide 29: Improving the Customer Experience
IMPROVING THE CUSTOMER EXPERIENCE“® | i ________ ~—___“4 « New/improved products and services « E-Statements « Mobile Banking « Mobile Deposit (Personal and Business) « New business cash management products/services * Easier to bank/do business here ¢ Killa stupid rule contest « Electronic signature
Slide 30: Improving the Employee Experience
IMPROVING THE EMPLOYEE EXPERIENCE “OX. E> $$ —————— * Enhanced the 401(k) Plan * Began matching on a per pay period basis + Better investment options (including HTBI stock) * Continued our matching contribution * Established a new Employee Stock Ownership Plan (ESOP) so that our employees are also o
Slide 31: Improving the Employee Experience
IMPROVING THE EMPLOYEE EXPERIENCE ~ E> $$ —————— * Conducted a detailed Employee Value Survey 93% participation rate Goal - to understand both what makes it better here and what might be getting in the way of making this a better place to work and a better place to bank! Results shared with all empl
Slide 32: Improving Internal Processes
IMPROVING INTERNAL PROCESSES ~ | i ________ ~—___“4 « Implemented a new line of business reporting structure « Mortgage/Retail/Commercial * Open lines of communication ¢ Better clarity, vision and purpose ¢ Established the Project Management Office « Provide discipline for major projects ¢ Establish
Slide 33: Strategic Objectives
x STRATEGIC OBJECTIVES DANA STONESTREET, PRESIDENT/CO-CEO
Slide 34: Strategic Objectives
STRATEGIC OBJECTIVES x LOLOL, S| — A. Grow Core Competencies B. Build our Brand — It’s Just Better Here C. Organic Growth D. Strategic Consolidation
Slide 35: Strategic Objectives: Grow Core Competencies
STRATEGIC OBJECTIVES Sia _______ ~~" “4 A. Grow Core Competencies Scalable Infrastructure Mortgage Banking — Completed in 2013 Commercial Banking - 2014 Enterprise Risk Management Regulatory Compliance + 2010 Dodd-Frank Act— 2,319 pages + Dodd-Frank Regulations — 8,500 pages Preserve our Culture and
Slide 36: Strategic Objectives: Build Our Brand
STRATEGIC OBJECTIVES B. Ltt just belter here. PASSIONATE & ENTHUSIASTIC EMPLOYEES > Making a BETTER Difference > Building BETTER Relationships > Adding BETTER Value > Growing Ourselves to be BETTER
Slide 37: Strategic Objectives: Organic Growth
STRATEGIC OBJECTIVES ~ Sia _______ ~~" “4 C. Organic Growth * Households and Businesses + Increase number of products provided to each customer Loans and Core Deposits New Lines of Business + Indirect Auto Lending Fee Income + Repriced business products for increased fee generation Earnings
Slide 38: Capital Management
CAPITAL MANAGEMENT Sia _______ ~~" “4 Potential uses for capital: * Acquisitions o Strategic community bank consolidation « Repurchase shares (4% in 2013 + 5% in 2013-14) * Cash dividends * Other general corporate purposes
Slide 39: Strategic Objectives: Strategic Consolidation
STRATEGIC OBJECTIVES ~ Sia _______ ~~" “4 D. Strategic Consolidation ¢ Key Drivers for Consolidation o Revenue headwinds for the industry o Asset quality problems o Regulatory/compliance requirements o Slow / low growth economic environment o Overcapacity o Management and board fatigue o Capital nee
Slide 40: Strategic Consolidation (Continued)
STRATEGIC OBJECTIVES ~ | i ________ ~—___“4 D. Strategic Consolidation (Continued) * Community Bank Partner of Choice + Long-term Community Bank Model Fill-in and Expand Footprint in Growth Markets Achieve Economies of Scale Leverage Capital to Grow Earnings and Stockholder Value Financial Targets +
Slide 41: Summary
SUMMARY x LOLOL, S| — HometTrust Bancshares, Inc. o 11 largest North Carolina community bank o Tangible capital — $368 million as of 9/30/13 o Positioned to capitalize on opportunities Management o 304 years in banking o 183 years with HomeTrust o Significant experience with strategic partnerships o
Slide 42: Thank You
THANK YOU
Slide 43: Questions and Comments
QUESTIONS AND COMMENTS ~ | i ________ ~—___“4 In accordance with the Rules of Conduct, each stockholder or proxyholder has an opportunity to ask questions or make comments. After you are recognized, proceed to the microphone. Please identify yourself by stating your name and whether you are a stockh
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