Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — NCBA Bank Directors Assembly (March 2015)
21 slides from Hometrust Bancshares's conference presentation, Mar 2, 2015
Slide 1: NCBA Bank Directors Assembly
* March 2, 2015NCBA Bank Directors Assembly
Slide 2: Forward-Looking Statements
* 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 conditional verbs such
Slide 3: HomeTrust Profile
* HomeTrust Profile Founded in 1926Operated as a mutual savings bank 5 mutual combinations from 1996 – 20103/31/12 = $1.6 billion in assets, $171 million in capitalConverted to stock in 2012 and raised $211.6 millionEstablished goal of acquisition and organic growth
Slide 4: Asset Growth Since 1996
* Asset Growth Since 1996 Total assets have doubled since 2008 * Financial data as of 9/30/14; pro forma amounts include the 11/14/14 acquisition of the branch banking operations of ten locations in Virginia and North Carolina from Bank of America Corporation; estimated financial impact for illustra
Slide 5: Organizational Clarity – Differentiation
* Organizational Clarity – Differentiation Answers to Six Key Questions1. Why Do We Exist?2. How Do We Behave?3. What Do We Do?4. How Will We Succeed?5. What Needs To Be Done Now?6. Who Will Do What?
Slide 6: M&A Evaluation (Scale 1-10)
* M & A Evaluation (Scale 1-10) 1. Lead with Culture• Initial Discussions • Integration Focus • Ongoing Commitment2. Geographic Footprint – Logical & Efficient 3. Growing Markets w/SMSA of meaningful size 4. Prioritize opportunities where we have 1st look – not bidding wars5. Credit Problems – Worke
Slide 7: M&A Evaluation continued
* M & A Evaluation continued 9. Rational price paid • Price adjust TBV • Earnings Accretion – 10%+ • Dilution earn back period <4 years • Board Seats/Social Issues • Realistic Cost Saves • One-Time Costs 10. Integration Risk • Size of deal • Number of locations • Complexity11. Significance of Exposu
Slide 8: Repositioning for Growth
* (A) Strategy(B) Execution(C) Repositioned Repositioning for Growth
Slide 9: (A) Strategy
* (A) Strategy “Our primary objective is to continue to operate and grow HomeTrust Bank as a well-capitalized, profitable, independent community banking organization.”“Expand our presence in contiguous larger markets that will support organic growth.”“Create Value for employees, customers, sharehold
Slide 10: (B) Execution – Acquisitions & Expansions
* (B) Execution Date Commercial Closed Description Assets Locations RM’s July 31, 2013 BankGreenville $101 million 1 location May 2014 Additional Pelham Rd location 4 May 31,2014 Jefferson Bancshares, Inc. $489 million 12 locations – East Tennessee 11 July 21, 2014 Roanoke Loan Production Office – T
Slide 11: BOA Branch Purchase Impact
* BOA Branch Purchase Impact Growth in deposit accounts of 60%Growth in low cost core depositsDebit card growth of 170%Internet banking growth of 110%5 Branch locations in Roanoke, VA to complement new Commercial LPO
Slide 12: Acquisition Pricing
* Acquisition Pricing Purchase Price(in millions) Price to TBV Cash/Stock BankGreenville (SC) $ 8.7 92% 100% Cash Jefferson Federal (East TN) 51.2 99% 50% Cash/50% Stock Bank of Commerce (NC) 10.0 112% 100% Cash $ 69.9 64% Cash $ 44.3 36% Stock $ 25.6 Source: SNL Financial 10/22/14 FTB purchases Tru
Slide 13: Our Franchise Footprint
Our Franchise Footprint I> Qetermaretesto ese Cheyer in Tt just bettor here
Slide 14: Growth Since Conversion
* Growth Since Conversion (past 30 months) Mutual Conversion 9/30/2012 Actual 12/31/2014 Change Since Conversion Change Since Conversion $ % Total Assets $ 1,603 $ 2,640 $ 1,037 65% Total Loan Portfolio $ 1,203 $ 1,650 $ 447 37% 1-4 Family 611 647 36 6% HELOC’s & Consumer 143 228 85 59% Commercial R
Slide 15: Loan Portfolio Composition
* Loan Portfolio Composition Loans: At Time of Conversion ¹ Loans: 12/31/14 With Recent Acquisitions Financial data as of 9/30/12
Slide 16: Deposit Portfolio Composition
* Deposit Portfolio Composition Deposits: At Time of Conversion (1) Deposits: 12/31/14 With Recent Acquisitions Financial data as of 9/30/12 Core Deposits50% CoreDeposits66%
Slide 17: Market Demographics
* Market Demographics New Markets – 150%Population increase – 532%CRM increase – 417%
Slide 18: (C) Repositioned for Organic Growth and EPS Growth
* (C) Repositioned for Organic Growth And EPS Growth Added Six Markets Larger than Asheville MSAAdded 25 new locationsAdded 25 Commercial Relationship ManagersAchieved organic loan growthGrew Core deposits by $700 millionAdded Infrastructure Expertise in all LOB’sAdded Indirect Auto LendingAdded CRM
Slide 19: Fiscal 2015 Focus
* Fiscal 2015 Focus IntegrationExecutionOrganic GrowthRevenue / EPS Growth Create Sustainable Value For Shareholders!
Slide 20: Headwinds Impacting Growth
* Headwinds Impacting Growth Low interest rates; potential for flat yield curve at 2%Competition for quality loans – rate/structure/termsEconomy – lukewarm / global, not localHousing still weakTechnology – new competitors, cost, cybersecurityRegulatory environment / Compliance burdensCustomer expect
Slide 21: NCBA Bank Directors Assembly
* March 2, 2015NCBA Bank Directors Assembly
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