Hometrust Bancshares, Inc. · NYSE:HTB

Hometrust Bancshares — Compass Point Investor Call (March 2018)

48 slides from Hometrust Bancshares's conference presentation, Mar 5, 2018

  1. Slide 1: Positioned for growth: Compass Point Investor Call

    Positioned for growth Compass Point Investor Call March 8, 2018

  2. Slide 2: Forward-Looking Statements

    Positioned for growth 2 Forward-Looking Statements This presentation 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

  3. Slide 3: HomeTrust Bancshares, Inc. Overview

    Positioned for growth 3 HomeTrust Bancshares, Inc. Overview Headquarters: Asheville, NC Exchange/Ticker: NASDAQ: HTBI Founded: 1926 Number of Employees: 481 Locations: 43 (NC, SC, VA, TN) Stock Price: $26.00 Total Assets: $3.3 billion Price to TBV: 135% Total Loans: $2.4 billion Market Cap: $495.5 m

  4. Slide 4: Strategic Operating Committee

    Positioned for growth 4 Strategic Operating Committee Leader Role Age Yrs in Banking Yrs w/HTBI Dana Stonestreet Chairman, President & Chief Executive Officer 63 39 28 Tony VunCannon Executive Vice President & Chief Financial Officer 52 29 25 Hunter Westbrook Executive Vice President & Chief Banking

  5. Slide 5: Transitioning to a High Performing Community Bank

    Positioned for growth Phase I: Created a Foundation For Growth  Lines of Business – Infrastructure and Talent  New markets for growth Phase II: Executing Our Strategic Plan with a Sense of Urgency  Sound and Profitable Organic Growth  Loans  Deposits  Lower our efficiency ratio  Noninterest i

  6. Slide 6: Growth Since 1996

    Positioned for growth $318 $431 $585 $605 $609 $686 $711 $722 $748 $885 $926 $1,124 $1,348 $1,470 $1,641 $1,638 $1,720 $1,583 $2,074 $2,783 $2,718 $3,207 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 ($000 ) Assets Loans Deposits Tryon Federal Partnership 1996 Shelby Savings Partnership 1998 Hom

  7. Slide 7: Foundation for Growth and Performance

    Positioned for growth 7 Foundation for Growth and Performance • Converted to stock in July 2012 and raised $211.6MM • Added 7 larger growing markets in NC, SC, VA and East TN since conversion • 4 whole bank acquisitions • 3 new Commercial Loan Production Offices from “lift-outs” of existing commerci

  8. Slide 8: Strong Footprint for Growth

    Positioned for growth 8 Strong Footprint for Growth

  9. Slide 9: Population Growth Through Addition of New Metro Markets

    Positioned for growth 9 Population Growth Through Addition of New Metro Markets 890,851 890,851 890,851 890,851 890,851 2,222,774 2,222,774 2,222,774 2,512,274 2,512,274 3,113,625 5,625,899 6,349,700 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 - 1,000,000 2,000,000 3,000,000 4,000,

  10. Slide 10: HomeTrust Growth Markets

    Positioned for growth 10 HomeTrust Growth Markets Asheville, NC MSA  2017 unemployment at 3.5% down from 3.7% in 2016  No. 1 Best in the U.S. Destination for 2017, Lonely Planet, January 2017  No. 3 out of 18 for the World’s Best Cities for Millennials, Matadornetwork.com, May 2016  No. 2 Best S

  11. Slide 11: New Greensboro Commercial Loan Production Office

    Positioned for growth 11 New Greensboro Commercial Loan Production Office • Announced July 31, 2017 • Strong new metro market • Greensboro-High Point MSA with population of 723,801 • 3rd largest MSA in North Carolina behind Charlotte and Raleigh • 7th metro market added since our stock conversion •

  12. Slide 12: Building a High-Performing Commercial Lending Team

    Positioned for growth 12 Building a High-Performing Commercial Lending Team Changes in the past 5 years Commercial lenders in legacy markets – June 2012 5 Attrition in legacy markets (4) Hired/replaced in legacy markets 4 Acquired through bank acquisitions 21 Attrition after bank acquisitions (18) H

  13. Slide 13: Adding Talent for Growth

    Positioned for growth 13 Adding Talent for Growth Commercial and Line of Business Leaders

  14. Slide 14: 5-Year Growth Since Conversion

    Positioned for growth 14 5-Year Growth Since Conversion Mutual/Stock Quarter Conversion Ended 09/30/2012 09/30/2017 $ % Total Assets $1,603 $3,250 $1,647 103% Total Loan Portfolio $1,203 $2,395 $1,192 99% Total Deposit Portfolio $1,160 $2,100 $940 81% Checking Accounts 239 769 530 222% Money Market/

  15. Slide 15: Continuing To De-Thrift the Balance Sheet

    Positioned for growth 15 Continuing To “De-Thrift” the Balance Sheet Organic Loan Growth in Nonmortgage Loans:  Commercial  Commercial real estate (CRE)  Commercial & industrial (C&I)  Commercial Construction  Indirect Auto  SBA Lending  Equipment Finance Core Deposit Growth:  Commercial che

  16. Slide 16: Loan Highlights

    Positioned for growth 16 Loan Highlights Loan Portfolio Growth:  Organic loan growth of 14% in FY 2017 vs. 4% in FY 2016 ($243MM vs $75MM)  30% growth in indirect auto loans ($32MM)  53% growth in commercial loans ($400MM* - CRE, C&I, Commercial Construction, Municipal Leases)  88% of fiscal 201

  17. Slide 17: Loan Portfolio Composition

    Positioned for growth 17 Loan Portfolio Composition $ 6 2 1 $ 6 0 2 $ 6 6 0 $ 6 5 0 $ 6 2 4 $ 6 8 4 $200 $182 $223 $336 $459 $518 $411 $383 $615 $700 $750 $1 ,150 $- $500 $1,000 $1,500 $2,000 $2,500 2012 2013 2014 2015 2016 2017 Lo an B ala n ce Fiscal Year 1-4 Family HELOCs & Other Consumer Commerc

  18. Slide 18: Commercial Loan Production by Type

    Positioned for growth 18 Commercial Loan Production by Type Excludes municipal leases. Dollars in thousands $4,013 $3,971 $28,649 $18,960 $13,389 $35,773 $34,583 $47 ,955 $11 2 ,349 $22,933 $16 4 ,945 $13 7 ,660 $92 ,591 $19 2 ,803 $23 8 ,870 $- $50,000 $100,000 $150,000 $200,000 $250,000 C&I Commer

  19. Slide 19: Commercial Real Estate Composition

    Positioned for growth 19 Commercial Real Estate Composition 12% 29% 11% 12% 7% 10% 5% 3% 11% As of 6/30/17 Multifamily Owner Occupied Office Retail Hospitality Shopping Centers Industrial Healthcare Other

  20. Slide 20: Commercial Production by Market

    Positioned for growth 20 Commercial Production by Market 22,571 38,151 56,969 53,551 69,902 62,413 12,264 141,336 255,636 461,851 5 5 8 15 19 30 - 5 10 15 20 25 30 2012 2013 2014 2015 2016 2017 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 Legac

  21. Slide 21: Consumer Loan Production

    Positioned for growth 21 Consumer Loan Production Dollars in thousands $15 ,839 $33 ,324 $9,598 $49 ,841 $53 ,010 $54 ,598 $87 ,844 $ 4 9 ,7 9 4 $84 ,707 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 HELOC-originated/Consumer Indirect auto Origi n at io n s Fisc

  22. Slide 22: Mortgage Loan Production

    Positioned for growth 22 Mortgage Loan Production $35 ,907 $22 7 ,117 $12 0 ,808 $ 4 9 ,4 5 5 $73 ,501 $68 ,242 $49 ,689 $7 4 ,353 $ 8 9 ,2 9 9 $42 ,493 $91 ,963 $81 ,577 $71 ,674 $13 4 ,258 $99 ,220 $- $50,000 $100,000 $150,000 $200,000 $250,000 Construction 1-4 Family Originated for Sale 1-4 Famil

  23. Slide 23: Deposit/Retail Highlights

    Positioned for growth 23 Deposit/Retail Highlights Deposit Growth:  17% core deposit* growth in fiscal 2017 ($226MM)  24% growth in total checking accounts  41% growth in commercial checking accounts  Core deposits* now make up 77% of total deposits  Average cost of total deposits remained at .

  24. Slide 24: Deposit Portfolio Mix

    Positioned for growth Deposit Portfolio Mix 2012 2013 2014 2015 2016 2017 Time Deposits $629,958 $540,387 $634,154 $577,075 $442,649 $462,146 Money Market/Savings $348,519 $357,876 $530,221 $703,622 $731,137 $806,756 Checking Accounts $230,683 $256,486 $418,671 $591,429 $628,910 $779,549 Core Deposi

  25. Slide 25: Deposit Composition and Migration

    Positioned for growth 52.1% 46.8% 40.1% 30.8% 24.6% 22.6% 28.8% 31.0% 33.5% 37.6% 40.6% 39.4% 19.1% 22.2% 26.4% 31.6% 34.9% 38.1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2012 2013 2014 2015 2016 2017 Time Deposits Money Market/Savings Checking Accounts $462,146 $806,756 $779,549 Time Deposits Mo

  26. Slide 26: Growing Noninterest Income

    Positioned for growth 26 Growing Noninterest Income  New SBA Line of Business  Gain from loan sales  Third party servicer to keep overhead low  Mortgage Banking  Expanded into 5 of our new metro markets  Added 10 new mortgage loan officers in the last 12 months  Increasing rates to enhance ga

  27. Slide 27: Creating Efficiencies/Expense Management

    Positioned for growth 27 Creating Efficiencies/Expense Management  Consolidated 10 branch offices  Closed 6 overlapping rural offices  Consolidated 4 offices related to acquisitions  Branch optimization staffing study reduced expense $375,000 annually  Changed health care insurance providers to

  28. Slide 28: Asset Quality

    Positioned for growth Nonperforming Assets / Total Assets Net Charge-Offs & NCO / Avg. Loans $30,640 $4 ,127 0.34% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2012 2013 2014 2015 2016 2017 Net Charge-Offs NCO/Avg. Loans 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.

  29. Slide 29: Current FHLB Leveraging Strategy

    Positioned for growth 29 Current FHLB Leveraging Strategy  Borrowed $318 million (1) of additional short-term advances from the FHLB  Borrowings increased FHLB stock requirements to $32 million to take advantage of high dividend rate (4.77% annualized for 4th quarter 2017)  Used funds to invest i

  30. Slide 30: Investment Portfolio Composition

    Positioned for growth 30 Investment Portfolio Composition Investments: 6/30/17 ($281 MM) 24% 33% 12% 2%29% US Gov't Agency ($66 MM) MBS-Gov't Agcy/GSE ($93 MM) Munis ($34 MM) Corporate Bonds ($6 MM) FDIC Insured CDs in Other Banks($82 MM) Yield: 1.76% Avg Repricing Term: 2.13 years Investments exclu

  31. Slide 31: Continuing to Leverage Capital

    Positioned for growth 31 Continuing to Leverage Capital • Organic loan growth • Opportunistic acquisitions at reasonable prices • Share repurchases – Repurchased 26% since 2012 conversion • Dividends - None to date with low price to tangible book value 13.06% 11.13% 13.06% 13.89% 0.0% 5.0% 10.0% 15.

  32. Slide 32: Opportunistic Acquisition Strategy

    Positioned for growth 32 Opportunistic Acquisition Strategy  Geographic footprint – within or adjacent to our current market footprint  Attractive, growing market  Asset size – Target of $300 million to $800 million  Strong core deposit base  Earnings accretion of 10% or more  Minimum dilution

  33. Slide 33: Stock Buy Backs

    Positioned for growth (Dollars in thousands, except per share amounts) Source: Company documents previously filed with the SEC 33 Stock Buy Backs Percent Purchased of Outstanding Shares Number of Shares Total Cost Avg Cost / Share 1st Buy Back (completed 4/29/13) 4% 846,400 13,299$ 15.71$ 2nd Buy Ba

  34. Slide 34: Quarter Ended December 31, 2017 Highlights

    Positioned for growth 34 Quarter Ended December 31, 2017 Highlights (Dollars in thousands, except per share amounts) As Reported 12/31/2017 12/31/2016 Amount Percent Net income (10,666)$ 2,983$ (13,649)$ (457.56%) EPS - diluted (0.59)$ 0.17$ (0.76)$ -447% ROA (1.31%) 0.43% (1.74%) (404.65%) Net inte

  35. Slide 35: Six Month Ended December 31, 2017 Highlights

    Positioned for growth 35 Six Month Ended December 31, 2017 Highlights As Reported 12/31/2017 12/31/2016 Amount Percent Net income (5,099)$ 6,807$ (11,906)$ -175% EPS - diluted (0.28)$ 0.39$ (0.67)$ -172% ROA -0.32% 0.49% (0.81%) -165% Net interest margin (tax equivalent) 3.43% 3.38% 0.05% 1.48% Noni

  36. Slide 36: Balance Sheet Highlights

    Positioned for growth (Dollars in thousands, except per share amounts) 36 Balance Sheet Highlights 12/31/2017 12/31/2016 Amount Percent Total assets 3,250,588$ 2,774,240$ 476,348$ 17% Total loans 2,418,014 1,955,604 462,410 24% Core deposits 1,666,152 1,388,436 277,716 20% Total deposits 2,108,208 1

  37. Slide 37: Improving Earnings Performance

    Positioned for growth 37 Improving Earnings Performance $9,746 $8,256 $11,784 $12,228 $17,111 $12,612 $12,612 $0.49 $0.44 $0.61 $0.70 $0.94 $1.35 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 (annualized

  38. Slide 38: Market Price and Price to Tangible Book

    Positioned for growth 38 Market Price and Price to Tangible Book $16.96 $15.77 $16.76 $18.50 $24.40 $25.75 96.1% 89.2% 92.8% 97.1% 126.0% 133.7% -10.0% 10.0% 30.0% 50.0% 70.0% 90.0% 110.0% 130.0% 150.0% $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 06/30/2013 06/30/2014 06/30/2015 06/30/2016 06/30/2017 12/3

  39. Slide 39: Total Shareholder Return

    Positioned for growth 100.0 120.0 140.0 160.0 180.0 200.0 220.0 240.0 260.0 07/11/12 06/30/13 06/30/14 06/30/15 06/30/2016 06/30/2017 12/30/2017 Total Return Performance HomeTrust Bancshares, Inc. NASDAQ Bank NASDAQ Composite 39 Total Shareholder Return

  40. Slide 40: Community Banks Headquartered in North Carolina

    Positioned for growth 40 Community Banks Headquartered in North Carolina $33,612 $36,542 $32,170 $50,502 $20,047 25 25 24 22 12 0 5 10 15 20 25 30 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 FY 2013 FY 2014 FY 2015 FY 2016 09/30/2017 Assets No. of Banks > $500 million & < $10 billion Dollars

  41. Slide 41: Proven Growth Strategy

    Positioned for growth 41 Proven Growth Strategy • Building on Our Strong Organic Growth • 7 new metro markets (including our new Greensboro LPO) • Commercial lending • Mortgage banking • Core deposits • Expanding into New Lines of Business • Indirect auto • Equipment Finance • SBA • Opportunistic Ac

  42. Slide 42: Favorable Trading Price

    Positioned for growth 42 Favorable Trading Price From Compass Point Research and Trading, LLC - Seeking Value, Top 10 Whistle-Clean Conversion Picks, February 18, 2018 Top Ten Conversion Picks, $2-10B in Assets Ticker Name State Market Cap (M) 2/18/18 Price Conversion Type Conversion IPO Date Shares

  43. Slide 43: Investor Contacts

    Positioned for growth 43 Investor Contacts Dana Stonestreet Chairman, President and CEO dana.stonestreet@hometrustbanking.com Hunter Westbrook EVP/Chief Banking Officer hunter.westbrook@hometrustbanking.com Tony VunCannon EVP/Chief Financial Officer/Treasurer tony.vuncannon@hometrustbanking.com 10 W

  44. Slide 44: Non-GAAP Disclosure Appendix

    Positioned for growth Non-GAAP Disclosure Appendix 44

  45. Slide 45: Non-GAAP financial measures

    Positioned for growth In addition to results presented in accordance with generally accepted accounting principles utilized in the United States ("GAAP"), this presentation contains certain non-GAAP financial measures, which include: tangible book value per share, net income excluding merger-related

  46. Slide 46: Non-GAAP Disclosure Reconciliation: Tangible Book Value

    Positioned for growth 46 Non-GAAP Disclosure Reconciliation Set forth below is a reconciliation to GAAP of tangible book value, tangible book value per share, and share price to tangible book:

  47. Slide 47: Non-GAAP Disclosure Reconciliation: Net Income, ROA, EPS

    Positioned for growth 47 Non-GAAP Disclosure Reconciliation Set forth to the right is a reconciliation to GAAP net income, ROA, and EPS as adjusted to exclude merger-related expenses, nonrecurring state tax expense, gain on sale of premises and equipment, and impairment charge for branch consolidati

  48. Slide 48: Non-GAAP Disclosure Reconciliation: Net Income, ROA, EPS

    Positioned for growth 48 Non-GAAP Disclosure Reconciliation Set forth to the right is a reconciliation to GAAP net income, ROA, and EPS as adjusted to exclude merger-related expenses, nonrecurring state tax expense, federal tax law change, and gain on sale of premises and equipment:

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