Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — Q2 2024 Earnings Presentation
32 slides from Hometrust Bancshares's earnings presentation, Jul 29, 2024
Slide 1: 2nd Quarter 2024 Investor Presentation
2nd Quarter 2024 Investor Presentation
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
HomeTrust Bancshares, Inc. Overview NASDAQ: HTBI $4.7B Assets Headquarters: Asheville, NC Founded: 1926 $3.7B / $3.7B Loans / Deposits Locations: 34 Employees: 558 124.2% Price to TBV Market Cap: $601.5MM TTM Average Daily Volume: 36,100 17,437,326 Outstanding Shares Shares Repurchased: 9,854,733 Co
Slide 4: Recent Recognition
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 Caro
Slide 5: Investment highlights
Footprint in attractive metro markets experiencing growth rates above the national average (See Pages 10-11) Successful transition to a commercial bank (See Pages 6-9, 12-16) • Expansion of lines of business, adding further diversity to our loan portfolio • Strong experienced team of revenue produce
Slide 6: Refreshed Leadership Team
• Our Focus • Hire individuals with the experience and skill sets needed to achieve: • Our goal of becoming a high-performing, regional community bank • Our strategy of becoming a best place to work • Our Execution • 7 of our 8 executive officers have joined the Company since our 2012 mutual to stoc
Slide 7: Business transformation timeline
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 – Launc
Slide 8: Pyramid of Success
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 8
Slide 9: Business Transformation: Phases of Progress
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) Introduced
Slide 10: Geographic Expansion – Focus on High-Growth Markets
Geographic Expansion – Focus on High-Growth Markets 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% Population Growth 7.7% HH Income Growth (2024 to 2029 Projected Change
Slide 11: Geographic Expansion – Focus on High-Growth Markets (Continued)
Geographic Expansion – Focus on High-Growth Markets (Continued) Source: U.S. Census Bureau, Vintage 2023 Population Estimates 11
Slide 12: Hybrid Branch Strategy
“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 13: Loan Portfolio Transformation
c 27% 15% 10% 11% 12% 17% 8% Present – 6/30/24 Total Loans of $3,701,454 (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 More Diversified Loan Portfol
Slide 14: Portfolios to Highlight: Non-Owner Occupied CRE
(Dollars in thousands, as of June 30, 2024) Portfolios to Highlight: Non-Owner Occupied CRE Hospitality Other Retail Healthcare Other 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 NOO
Slide 15: Portfolios to Highlight: SBA Loans & Equipment Finance
Portfolios to Highlight: SBA Loans & Equipment Finance C&I 29% Hotel 31% Retail 28% Other 8% Office 4% SBA Portfolio Total Balance $142,927 Guaranteed Balance $49,223 (Dollars in thousands, as of June 30, 2024) $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 Equipment Finance (“EF”) Co
Slide 16: Deposit Franchise
c 19% 15% 40% 26% Present – 6/30/24 Total Deposits of $3,707,779 (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% 3.00% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Cost of Deposits 16
Slide 17: Improvement in Profitability Metrics
$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 Adjusted Earnings Performance Adj. Net Income (Annualized) Adj. Net Income Adj. Diluted EPS 17 0.25% 0.45% 0.65% 0.85% 1.05% 1.25% 1.45% 2020 2021 2022 2023 Q2 2024* Adjusted Return
Slide 18: Strong Asset Quality and Credit Discipline
18 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% $- $2,000 $4,000 $6,000 $8,000 $10,000 2020 2021 2022 2023 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 12/31/20 12/31/21 12/31
Slide 19: Strong Capital Position to Support Continued Growth
19 6% 7% 8% 9% 10% 11% 12% 13% 12/31/20 12/31/21 12/31/22 12/31/23 6/30/24 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 6/30/24 Tier I Capital (to Total Adj
Slide 20: Capital Strategy: Dividends and Stock Buybacks
20 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 6/30/24 Ma
Slide 21: Valuation – Peer Comparison: ROA
210.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% C H C O R B C A FC B C H TB I P EB O C TB I S Y B T G A B C C C B G U V S P FB M S FM N B C C N E S M B K C B A N FR S T C IV B C A R E S FS T Return on Assets (“ROA”) Valuation – Peer Comparison HTBI ROA 1.37% Source: S&P Capital IQ Medi
Slide 22: Valuation – Peer Comparison: Price to EPS
220.00 5.00 10.00 15.00 20.00 25.00 30.00 S FS T S Y B T G A B C C H C O C A R E FC B C FR S T FM N B C TB I FB M S C B A N S M B K C IV B C C B G C C N E P EB O R B C A H TB I U V S P Stock Price to Earnings per Share (“EPS”) Valuation – Peer Comparison (Continued) (For the Quarter Ended March 31,
Slide 23: Valuation – Peer Comparison: Price to TBV
230.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 C H C O FM N B G A B C S Y B T FC B C P EB O FB M S C C B G C TB I R B C A C IV B H TB I S M B K FR S T C B A N U V S P C C N E S FS T C A R E Stock Price to Tangible Book Value (“TBV”) per Share Valuation – Peer Comparison (Continued) HTBI Stock Price $27.3
Slide 24: Quarterly Highlights
Quarterly Highlights 3/31/20236/30/20239/30/202312/31/20233/31/20246/30/2024 Net Income Per Share $ 0.40$ 0.91 $ 0.88$ 0.79$ 0.88$ 0.73Basic $ 0.40$ 0.90$ 0.88$ 0.79$ 0.88$ 0.73Diluted Performance Ratios 0.69%1.39 %1.33 %1.21 %1.37 %1.13 %Return on assets (ROA) 6.21%12.85 %12.23 %10.81 %11.91 %9.58
Slide 25: Quarterly Highlights: HomeTrust vs. Top Exchange Traded Banks
Quarterly Highlights: HomeTrust vs. Top 200 Exchange Traded Banks Source: S&P Capital IQ Pro/Piper Sandler “2Q2024 Earnings Release Summary: Key Metrics & Calendar” dated July 25, 2024 As of or for the quarter ended 6/30/2024 Nationwide Mean HomeTrust +/- Variance Tangible Common Equity / Tangible A
Slide 26: Quarterly Highlights: Net Interest Margin
26 Quarterly Highlights: Net Interest Margin 3.49% 4.10% 4.53% 4.55% 4.32% 4.02% 4.02% 4.02% 4.08% 3.47% 4.09% 4.51% 4.52% 4.25% 4.02% 4.04% 3.99% 4.03% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 NIM Reported NIM Core* * Core net
Slide 27: Quarterly Highlights: Tangible Book Value Per Share
27 Quarterly Highlights: Tangible Book Value Per Share $23.29 $23.70 $24.53 $23.93 $24.69 $25.47 $26.39 $27.10 $27.73 $20.00 $21.00 $22.00 $23.00 $24.00 $25.00 $26.00 $27.00 $28.00 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Decline during the 3/31/202
Slide 28: Appendix – Non-GAAP Reconciliation
Set forth is a reconciliation to GAAP of our efficiency ratio: Set forth is a reconciliation to GAAP of tangible book value, tangible book value per share, and price to tangible book value: 6 Months Ended (Dollars in thousands) 6/30/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Noninterest expens
Slide 29: Reconciliation of tangible book value
Set forth is a reconciliation to GAAP of tangible book value, tangible book value per share, and price to tangible book value: (Dollars in thousands) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Total stockholder's equity 523,628$ 513,173$ 499,893$ 484,411$ 471,186$ Less: goodwill, core deposi
Slide 30: Appendix – Non-GAAP Reconciliation (Continued)
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) 6 Months Ended (Dollars in thousands) 6/30/2024 12/31/2023 12/31/
Slide 31: Appendix – Non-GAAP Reconciliation (Continued)
Appendix – Non-GAAP Reconciliation (Continued) Set forth is a reconciliation to GAAP of our quarterly efficiency ratio: (Dollars in thousands) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Noniinterest expense 30,210$ 29,864$ 29,781$ 29,564$ 30,911$ 32,833$ Less: merger-related expens
Slide 32: Contact
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