Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — Merger or Acquisition (July 2022)
19 slides from Hometrust Bancshares's merger presentation, Jul 25, 2022
Slide 1: Continuing and Accelerating HomeTrust's Transformation and Value Creation
July 25, 2022 Continuing and Accelerating HomeTrust’s Transformation and Value Creation
Slide 2: Forward-looking statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should
Slide 3: Accelerated Shareholder Value Creation
3 Accelerated Shareholder Value Creation Significantly Enhanced Shareholder Value HomeTrust’s Transition to High Performing Market Expansion 20%+ EPS Accretion Expanded SBA Footprint A unique opportunity for HomeTrust to expand its franchise and meaningfully enhance its profitability New Deposit Lin
Slide 4: Strategic Rationale for Transaction
4 Strategic Rationale for Transaction HomeTrust explores opportunistic merger partners, specifically those that will leverage our infrastructure and lines of business to accelerate earnings growth and value creation for our shareholders. Below we have evaluated our merger with Quantum against the in
Slide 5: Earnings accretion and screening criteria
5 • Earnings accretion of 10% or more ➢ Earnings per share (“EPS”) accretion of 20%+ after the full realization of cost savings ➢ Driven by Quantum’s profitability rather than significant expense reductions • Dilution earnback period of three years or less ➢ Tangible book value per share (“TBVPS”) e
Slide 6: Who is Quantum?
Nationally chartered bank headquartered in Suwanee, Georgia (suburb of Atlanta) since 1995 Founded by current Chairman Dr. Narasimhulu Neelagaru, a retired cardiologist and internist, who owns 99.9% of Quantum’s outstanding common stock (S-Corp structure) One of the highest performing banks in the s
Slide 7: Quantum Highlights
1 Financial highlights as of and for the quarter ended March 31, 2022 2 Ratios have been tax adjusted Source: S&P Capital IQ Pro 7 Market Highlights Total Assets $679.9M Gross Loans $547.8M Total Deposits $609.4M Financial Highlights1 Balance Sheet ROA2 1.59% ROE2 24.13% NIM 4.17% Efficiency Ratio 4
Slide 8: Combined Branch Footprint – Focus on High-Growth Markets
8 Combined Branch Footprint – Focus on High-Growth Markets HomeTrust branch (34) Quantum branch (3) Source: S&P Global Market Intelligence for MSA Demographics Raleigh 5.1% Population Growth 12.3% HH Income Growth Charlotte 4.5% Population Growth 12.7% HH Income Growth Atlanta 5.4% Population Growth
Slide 9: Consideration & pricing
9 Consideration & pricing Fixed HTBI shares issued of 1,374,646 Fixed cash consideration of $33.0 million 51% stock / 49% cash Closing Anticipate closing in the first quarter of calendar year 2023 (third quarter of fiscal year 2023) Pro forma ownership 91.9% HTBI / 8.1% Quantum Cost savings 24.0% of
Slide 10: HomeTrust's momentum and financial performance
Fiscal 2020 Fiscal 2021 Fiscal YTD Q3 20221 Total assets $3,722,852 $3,524,723 $3,541,785 Gross loans $2,769,119 $2,733,267 $2,699,538 Deposits $2,785,756 $2,955,541 $3,059,157 Adjusted dilutive EPS3 $1.30 $2.06 $1.84 Adjusted ROA3 0.63% 0.92% 1.12% Adjusted efficiency ratio3 71.62% 74.08% 69.19% Ad
Slide 11: Summary
11 ✓ Continuation of HomeTrust’s strategic initiatives to enter high-growth markets, expand our fee-based businesses and grow our commercial deposit base ✓ This was the right time and right opportunity to accelerate growth, profitability and shareholder value ✓ Diversified commercial loan portfolio
Slide 12: Appendix
Appendix
Slide 13: Comprehensive Due Diligence
13 Comprehensive Due Diligence • Extensive due diligence procedures were performed by members of HomeTrust’s management team to ensure a low-risk transaction, engaging third parties to assist the process as needed. These procedures included the following: • Key focus areas: credit, risk management,
Slide 14: Pro Forma Loan & Deposit Composition
Source: Company documents Note: Financial data as of March 31, 2022 14 HomeTrust Bank Total loans & leases: $2,784,801 Quantum National Bank Total loans & leases: $547,842 Pro Forma Total loans & leases: $3,332,643 HomeTrust Bank Total deposits: $3,061,675 Quantum National Bank Total deposits: $610,
Slide 15: Quantum Capital Corp.'s Historical Results
(dollars in thousands) 2019 2020 2021 Total Assets $513,160 $608,628 $642,420 Net Loans, excluding PPP Loans 429,639 479,310 514,017 Total Deposits 451,395 508,946 572,120 Total Equity 42,222 52,373 42,767 Pre-Tax Income 14,258 14,379 20,557 Noninterest Income 2,133 3,694 5,590 PPP Fees -- 2,829 3,2
Slide 16: Non-GAAP Reconciliation
16 Non-GAAP Reconciliation In addition to results presented in accordance with generally accepted accounting principles utilized in the United States (“GAAP”), this document contains certain non- GAAP financial measures, which include: the efficiency ratio; tangible book value; tangible book value p
Slide 17: Non-GAAP Reconciliation (Continued)
17 Non-GAAP Reconciliation (Continued) Set forth is a reconciliation to GAAP net income, EPS, and ROA as adjusted to exclude branch closure and restructuring expenses, and prepayment penalties on borrowings. In relation to the two-class method, net income used in the calculations of basic and dilute
Slide 18: 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 18 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 Emplo
Slide 19: Dana Stonestreet Chairman and CEO dana.stonestreet@htb.com Hunter Westbrook President and Chief Operating Officer hun…
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
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