Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — Piper Sandler East Coast Financial Services Conference 2023
32 slides from Hometrust Bancshares's conference presentation, Nov 13, 2023
Slide 1: Piper Sandler East Coast Financial Services Conference
November 15-17, 2023 Piper Sandler East Coast Financial Services Conference
Slide 2: Forward-looking statements
This document includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but instead are based on certain assumptions including statements with respect to the Company's beliefs, p
Slide 3: HomeTrust Bancshares, Inc. Overview
• Financial data as of September 30, 2023 • Market data as of November 8, 2023 • Shares repurchased from February 19, 2013 to September 30, 2023 (last transaction in May 2022) 3 HomeTrust Bancshares, Inc. Overview $4.7B Assets NASDAQ: HTBI Headquarters: Asheville, NC $3.7B/$3.6B Loans/Deposits Found
Slide 4: Recent Recognition
4 Recent Recognition Named one of the 2023 Top 20 “Great Employers to Work for in NC” by the Best Companies Group Voted “Best Small Bank in North Carolina” by Newsweek for three consecutive years (2021 - 2023) NC, VA, TN and GA were the top 4 states on CNBC’s list of America’s Top States for Busines
Slide 5: Investment highlights
5 Footprint in attractive metro markets experiencing growth rates above the national average (See Pages 9-10) Successful transition to a commercial bank (See Pages 6-8, 11-15) • Expansion of lines of business, adding further diversity to our loan portfolio • Strong experienced team of revenue produc
Slide 6: Transformation timeline: stock conversion to commercial bank
6 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 7: Pyramid of Success
7 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 8: Business Transformation: Phases of Progress
8 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 9: Geographic Expansion – Focus on High-Growth Markets
9 Geographic Expansion – Focus on High-Growth Markets Source: S&P Global Market Intelligence for MSA Demographics Raleigh 7.4% Population Growth 11.8% HH Income Growth Charlotte 5.8% Population Growth 14.7% HH Income Growth Atlanta 4.7% Population Growth 14.2% HH Income Growth Greenville 4.7% Popula
Slide 10: Geographic Expansion – Focus on High-Growth Markets (Continued)
10 Geographic Expansion – Focus on High-Growth Markets (Continued)
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 “Branch-Lite” Business Banking Centers Atlanta Charlotte Greenville Knoxville Raleigh Branch Manager & Small Business Banker Small Business Banking
Slide 12: Loan Portfolio Transformation: Transition to a Commercial Bank
12 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 Commercial RE (NOO) Commercial RE (OO) Construction and Development Equipment Finance Other Commercial* 1-4 Family HELOCs and Other Consumer 2017 2018 2019 2020 2021 2022 2023** 9/30/2023 (Do
Slide 13: Portfolios to Highlight: Non-Owner Occupied CRE & Construction and Development
13 (Dollars in thousands, as of September 30, 2023) Portfolios to Highlight: Non-Owner Occupied CRE & Construction and Development $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 Non-Owner Occupied CRE Composition NOO CRE – Office Largest 5 Relationships: $6,607,000
Slide 14: Portfolios to Highlight: SBA Loans & Equipment Finance
14 Portfolios to Highlight: SBA Loans & Equipment Finance C&I 31% Hotel 29% Retail 29% Other 7% Office 4% SBA Portfolio Total Balance $143,663 Guaranteed Balance $52,810 (Dollars in thousands, as of September 30, 2023) $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 Equipment Finance (“EF”) Com
Slide 15: Move Towards Core Deposits
15 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2019 2020 2021 2022 2023 Q1 2024 Average Cost of Deposits* $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 Noninterest-bearing NOW Money Market/Savings Time Deposits Deposit Portfolio* 2019 2020 2021 2022 2023** 9/30/2023 (Dol
Slide 16: Strong Asset Quality and Credit Discipline
* Reflects the adoption of CECL on July 1, 2020. ** Includes $4.9 million increase to establish an ACL on Quantum’s loan portfolio. 16 -0.10% 0.10% 0.30% $(1,000) $2,000 $5,000 $8,000 $11,000 2020 2021 2022 2023 Q1 2024 Net Charge-Offs (“NCO”) and NCO to Average Loans NCO (Recoveries) Annualized NCO
Slide 17: Strong Capital Position to Support Continued Growth
17 0% 2% 4% 6% 8% 10% 12% 14% 2020 2021 2022 2023 9/30/2023 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% 2020 2021 2022 2023 9/30/2023 Tier I Capital (to Total Adjusted Assets) Ti
Slide 18: Capital Strategy: Dividends and Stock Buybacks
18 0% 5% 10% 15% 20% 25% 30% 35% $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 2020 2021 2022 2023 2024 Annualized Cash Dividends Dividend/Share Dividend Payout Ratio (By fiscal year) 60% 70% 80% 90% 100% 110% 120% 130% $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 2020 2021 2022 2023 9/30/2023 Mark
Slide 19: Improvement in Profitability Metrics
19 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2020 2021 2022 2023 2024 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% 2020 2021 2022 2023 Q1 2024 Adjusted Return
Slide 20: Noninterest Income
20 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 1.10% 1.20% $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 2020 2021 2022 2023 2024 Annualized Adjusted Noninterest Income Adjusted Noninterest Income % of Average Total Assets Service charges on deposits Loan income
Slide 21: Loans originated for sale and SBA lending
21 • Mortgage Banking – 1-4 family and jumbo loans for sale • Began selling pools of jumbo mortgages in FY 2022. • Sold $203.9 million, $406.5 million, $263.0 million, $56.6 million, and $20.4 million in loans over fiscal years 2020, 2021, 2022, 2023 and the quarter ended 9/30/2023. • HELOCs Origina
Slide 22: Merger with Quantum Capital Corp. highlights
1 Financial highlights as of the merger date of February 12, 2023 22 Highlights Financial Highlights1 Balance Sheet Loan credit mark $3.0M Loan interest rate mark $7.9M Provision for non-PCD loans + off balance sheet exposures $5.3M Allowance for PCD loans $0.4M Core deposit intangibles $12.2M Fair
Slide 23: Quarterly earnings, loan growth and asset quality
23 Earnings (GAAP) 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Net income 14,833$ 15,013$ 6,734$ 13,658$ 9,199$ Earnings per share (EPS) - diluted 0.88$ 0.90$ 0.40$ 0.90$ 0.60$ Return on assets (ROA) 1.33% 1.39% 0.69% 1.54% 1.02% Return on equity (ROE) 12.23% 12.85% 6.21% 13.37% 9.25% Net int
Slide 24: Quarterly Highlights: HomeTrust vs. Top Exchange Traded Banks
24 Quarterly Highlights: HomeTrust vs. Top 200 Exchange Traded Banks • Source: S&P Capital IQ Pro/Piper Sandler “3Q2023 Earnings Release Summary: Key Metrics & Calendar” dated October 27, 2023 As of or for the quarter ended 9/30/2023 Nationwide Mean HomeTrust +/- Variance Tangible Common Equity / Ta
Slide 25: Quarterly Highlights: Net Interest Margin
25 3.49% 4.10% 4.53% 4.55% 4.32% 4.02% 3.47% 4.09% 4.51% 4.52% 4.25% 4.02% 3.00% 3.50% 4.00% 4.50% 5.00% 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 NIM Reported NIM Core • Core net interest margin excludes accretion income and other loan fees • Net interest margin values are non-ta
Slide 26: Quarterly Highlights: Adjusted Return on Average Assets
26 0.67% 1.06% 1.40% 1.40% 1.38% 1.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Quarterly Highlights: Adjusted Return on Average Assets See Appendix – Non-GAAP Reconciliation
Slide 27: Quarterly Highlights: Adjusted Efficiency Ratio
27 69.41% 60.69% 58.12% 57.15% 60.61% 59.12% 50.00% 55.00% 60.00% 65.00% 70.00% 75.00% 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Quarterly Highlights: Adjusted Efficiency Ratio See Appendix – Non-GAAP Reconciliation
Slide 28: Appendix – Non-GAAP Reconciliation
28 Set forth is a reconciliation to GAAP of our efficiency ratio: Set forth is a reconciliation to GAAP of tangible book value, tangible book value per share, and price to tangible book value: 3 Months Ended (Dollars in thousands) 9/30/2023 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Noninterest expense
Slide 29: Appendix – Non-GAAP Reconciliation (Continued)
29 Set forth below is a reconciliation to GAAP net income, EPS, ROA, ROE, and ROATCE as adjusted to exclude adjustments for merger-related expenses, gain on sale of equity securities, gain (loss) on sale of premises and equipment, branch closure and restructuring expenses, officer transition agreeme
Slide 30: Appendix – Non-GAAP Reconciliation (Continued)
30 Set forth below is a reconciliation to GAAP non-interest expense, net interest income and efficiency ratio as adjusted to exclude certain adjustments for merger- related expenses, gain on sale of equity securities, gain (loss) on sale of premises and equipment, officer transition agreement expens
Slide 31: Appendix – Non-GAAP Reconciliation (Continued)
31 Set forth below is a reconciliation to GAAP net income and ROA as adjusted to exclude merger-related expenses, provision for credit losses established for merger, gain on death benefit proceeds from BOLI policies, gain on sale of equity securities, gain (loss) on sale of premises and equipment, o
Slide 32: Contact information
Hunter Westbrook President and Chief Executive 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.htb.com 32
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