Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — Investor Presentation (April 2024)
32 slides from Hometrust Bancshares's investor presentation, Apr 30, 2024
Slide 1: 1st Quarter 2024 Investor Presentation
1st Quarter 2024 Investor Presentation April 2024
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 March 31, 2024 • Market data as of April 24, 2024 • Shares repurchased from February 19, 2013 to December 31, 2023 (last transaction in May 2022) 3 HomeTrust Bancshares, Inc. Overview $4.7B Assets NASDAQ: HTBI Headquarters: Asheville, NC $3.6B/$3.8B Loans/Deposits Founded: 192
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 * Newsweek did not conduct “Best Bank” awards for 2024 NC, VA, TN and GA were the top 4 states on CNBC’s list of America’s Top States for Business 2023 Voted “Best Small Bank in North Ca
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
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 7.3% Population Growth 9.4% HH Income Growth Charlotte 5.8% Population Growth 10.6% HH Income Growth Atlanta 4.4% Population Growth 8.7% HH Income Growth Greenville 5.2% Populati
Slide 10: Geographic Expansion – Focus on High-Growth Markets (Continued)
10 Geographic Expansion – Focus on High-Growth Markets (Continued) * Source: U.S. Census Bureau, Vintage 2023 Population Estimates
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: Diversified Loan Portfolio
c 27% 14% 11% 11% 13% 16% 8% Present – 3/31/24 Total Loans of $3,648,152 12 (Dollars in thousands) * Equipment Finance line of business began in February of 2018. 24% 9% 10% 9% 28% 20% Past – 12/31/17 Total Loans of $2,419,256 Loan Portfolio Transformation: Transition to a Diversified Loan Portfolio
Slide 13: Portfolios to Highlight: Non-Owner Occupied CRE
13 (Dollars in thousands, as of March 31, 2024) Portfolios to Highlight: Non-Owner Occupied CRE Hospitality Other Retail Other Healthcare Shopping Centers Office Multifamily Industrial $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 Non-Owner Occupied CRE Composition
Slide 14: Portfolios to Highlight: SBA Loans & Equipment Finance
14 Portfolios to Highlight: SBA Loans & Equipment Finance C&I 29% Hotel 30% Retail 29% Other 8% Office 4% SBA Portfolio Total Balance $141,969 Guaranteed Balance $49,670 (Dollars in thousands, as of March 31, 2024) $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 Equipment Finance (“EF”) Composi
Slide 15: Deposit Franchise
c 20% 16% 40% 24% Present – 3/31/24 Total Deposits of $3,799,807 15 (Dollars in thousands) Deposit Franchise 15% 23% 41% 21% Past – 12/31/17 Total Deposits of $2,108,208 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Cost of Deposits
Slide 16: Improvement in Profitability Metrics
$0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2020 2021 2022 2023 2024 Adjusted Earnings Performance Adj. Net Income (Annualized) Adj. Net Income Adj. Diluted EPS 16 0.25% 0.45% 0.65% 0.85% 1.05% 1.25% 1.45% 2020 2021 2022 2023 Q1 2024 Adjusted Re
Slide 17: Strong Asset Quality and Credit Discipline
17 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% $- $1,250 $2,500 $3,750 $5,000 $6,250 $7,500 $8,750 $10,000 2020 2021 2022 2023 Q1 2024 Net Charge-Offs (“NCO”) and NCO to Average Loans NCOs NCOs (Annualized) NCO/Avg. Loans 0.65% 0.90% 1.15% 1.40% 1.65% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000
Slide 18: Strong Capital Position to Support Continued Growth
18 6% 7% 8% 9% 10% 11% 12% 13% 12/31/20 12/31/21 12/31/22 12/31/23 3/31/24 Common Equity Tier I Capital (to Risk-Weighted Assets) CET I Capital Minimum to Be Well Capitalized (Dollars in thousands) 4% 5% 6% 7% 8% 9% 10% 11% 12% 12/31/20 12/31/21 12/31/22 12/31/23 3/31/24 Tier I Capital (to Total Adj
Slide 19: Capital Strategy: Dividends and Stock Buybacks
19 0% 5% 10% 15% 20% 25% 30% $- $0.10 $0.20 $0.30 $0.40 $0.50 2020 2021 2022 2023 2024 Annualized Cash Dividends Dividend/Share Dividend/Share Annualized Dividend Payout Ratio 60% 75% 90% 105% 120% 135% $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 12/31/20 12/31/21 12/31/22 12/31/23 3/31/24 Ma
Slide 20: Valuation – Peer Comparison: Return on Assets
20 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% C H C O F C B C R B C A A C T B I S Y B T P E B O C C B G H T B I C IV B C C N E F M N B U V S P S M B K C A R E S F S T F R S T Return on Assets (“ROA”) Valuation – Peer Comparison ROA 1.17% • Source: S&P Capital IQ Median (For the Year
Slide 21: Valuation – Peer Comparison: Price to EPS
21 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 F R S T S F S T C A R E S M B K C H C O S Y B T F C B C R B C A A F M N B C T B I P E B O C C B G U V S P H T B I C C N E C IV B Stock Price to Earnings per Share (“EPS”) Valuation – Peer Comparison (Continued) (For the Year Ended December 31, 2023) S
Slide 22: Valuation – Peer Comparison: Price to Tangible Book
22 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 C H C O F M N B S Y B T F C B C P E B O C C B G C T B I R B C A A C IV B S M B K F R S T H T B I C C N E U V S P C A R E S F S T Stock Price to Tangible Book Value (“TBV”) per Share Valuation – Peer Comparison (Continued) Stock Price $26.92 TBV per Share $2
Slide 23: Merger with Quantum Capital Corp. Highlights
1 Financial highlights as of the merger date of February 12, 2023 23 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 24: Quarterly Highlights
24 Quarterly Highlights 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Net Income Per Share Basic $ 0.88 $ 0.79 $ 0.88 $ 0.91 $ 0.40 $ 0.90 Diluted $ 0.88 $ 0.79 $ 0.88 $ 0.90 $ 0.40 $ 0.90 Performance Ratios Return on assets (ROA) 1.37 % 1.21 % 1.33 % 1.39 % 0.69% 1.54 % Return on eq
Slide 25: Quarterly Highlights: HomeTrust vs. Top Exchange Traded Banks
25 Quarterly Highlights: HomeTrust vs. Top 200 Exchange Traded Banks • Source: S&P Capital IQ Pro/Piper Sandler “1Q2024 Earnings Release Summary: Key Metrics & Calendar” dated April 25, 2024 As of or for the quarter ended 3/31/2024 Nationwide Mean HomeTrust +/- Variance Tangible Common Equity / Tang
Slide 26: Quarterly Highlights: Net Interest Margin
26 Quarterly Highlights: Net Interest Margin 3.35% 3.49% 4.10% 4.53% 4.55% 4.32% 4.02% 4.02% 4.02% 3.31% 3.47% 4.09% 4.51% 4.52% 4.25% 4.02% 4.04% 3.99% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 NIM Reported NIM Core* * Co
Slide 27: Quarterly Highlights: Tangible Book Value Per Share
27 Quarterly Highlights: Tangible Book Value Per Share $23.12 $23.29 $23.70 $24.53 $23.93 $24.69 $25.47 $26.39 $27.10 $20.00 $21.00 $22.00 $23.00 $24.00 $25.00 $26.00 $27.00 $28.00 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 See Appendix – Non-GAAP Rec
Slide 28: Appendix – Non-GAAP Reconciliation
28 Set forth is a reconciliation to GAAP of our efficiency ratio: Set forth is a reconciliation to GAAP of tangible book value, tangible book value per share, and price to tangible book value: 3 Months Ended (Dollars in thousands) 3/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Noninterest exp
Slide 29: Appendix – Non-GAAP Reconciliation: Tangible Book Value
29 Set forth is a reconciliation to GAAP of tangible book value, tangible book value per share, and price to tangible book value: (Dollars in thousands) 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Total stockholder's equity 513,173$ 499,893$ 484,411$ 471,186$ 458,242$ Less: goodwill, core dep
Slide 30: Appendix – Non-GAAP Reconciliation (Continued)
30 In relation to the two-class method, net income used in the calculations of basic and diluted EPS have adjustments, which are included in Company documents previously filed with the SEC. Appendix – Non-GAAP Reconciliation (Continued) 3 Months Ended (Dollars in thousands) 3/31/2024 12/31/2023 12/3
Slide 31: Appendix – Non-GAAP Reconciliation (Continued)
31 Appendix – Non-GAAP Reconciliation (Continued) Set forth is a reconciliation to GAAP of our quarterly efficiency ratio: (Dollars in thousands) 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Noniinterest expense 29,864$ 29,781$ 29,564$ 30,911$ 32,833$ 26,076$ Less: merger-related ex
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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