Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — Shareholder Meeting (November 2019)
30 slides from Hometrust Bancshares's shareholder meeting presentation, Nov 18, 2019
Slide 1: Annual Shareholder Meeting November 18, 2019
ANNUAL SHAREHOLDER MEETING November 18, 2019
Slide 2: Retiring Director Bob Dinsmore Thank you!
Retiring Director Bob Dinsmore Thank you!
Slide 3: 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 a
Slide 4: HomeTrust Bancshares, Inc. Overview
HomeTrust Bancshares, Inc. Overview Headquarters: Asheville, NC Exchange/Ticker: NASDAQ: HTBI Founded: 1926 Number of Employees: 556 Locations: 41 (NC, SC, VA, TN) Stock Price: $26.17 Total Assets: $3.7 billion Price to TBV: 121% Total Loans: $2.5 billion Market Cap: $466 million Total Deposits: $2.
Slide 5: Foundation for Growth and Performance
Foundation for Growth and Performance •Added 7 larger growing markets in NC, SC, VA and East TN since conversion •Hired key experienced team members to buildout infrastructure to transition from rural thrift to commercial bank in metro markets •Hired 36 new Commercial Market Presidents / Commercial
Slide 6: Current Focus
Current Focus p Foundation for growth and performance Value Creation for Shareholders • EPS growth • Increasing franchise value • Investing in the future with enhanced/new lines of business • Core deposit growth • Noninterest income growth • Opportunistic acquisition strategy • Initiated quarterly c
Slide 7: Improving Earnings Performance
Improving Earnings Performance Dollars in thousands See Non-GAAP Disclosure Appendix 7
Slide 8: ROA Trajectory – Adjusted Return on Assets
ROA Trajectory – Adjusted Return on Assets1 Normalized ROA Growth with Upward Momentum (1) See Non-GAAP Disclosure Appendix 8
Slide 9: Return On Assets – Positive Drivers
Return On Assets – Positive Drivers Improving Noninterest Income Reducing Noninterest Expense 9
Slide 10: Strong Footprint for Growth
Strong Footprint for Growth 10
Slide 11: Loan Highlights
Loan Highlights Loan Portfolio Growth Fiscal 2019: Loan Portfolio Quarter-Ended 9/30/19: ▪ Organic loan growth of 10% ($229MM) ▪ Organic loan growth of 11% ($73MM) ▪ 97% growth in C&I loans and ▪ 68% annualized growth in Equipment Finance Equipment Finance ($144MM) ▪ 27% annualized growth in CRE ▪ 8
Slide 12: New SBA Line of Business Strategy
New SBA Line of Business Strategy ▪ Originate SBA 7(a) and USDA B&I loan facilities to provide additional lending products for deeper customer service andNew have a moreSBA robust Line basket of of Business tools from which Strategy to compete. ▪ SBA 7(a) and USDA B&I allows the Bank to offer non-tr
Slide 13: New Equipment Finance Strategy
New Equipment Finance Strategy ▪ Offers a variety of solutions including leases, loans, and commercial finance agreements ▪ Target industriesNew andEquipment equipment types include: Finance manufacturing, Strategy machine tools, material handling, construction, transportation, and other essential u
Slide 14: Transitioning to a Commercial Bank Loan Portfolio
Transitioning to a Community Bank Loan Portfolio Transitioning to a Commercial Bank Portfolio Dollars in millions 5-Year CAGR of 13% 14
Slide 15: Total Loan Production
Total Loan Production Dollars in thousands 15
Slide 16: Drivers of Organic Loan Growth
Drivers of Organic Loan Growth 2013 Dollars in thousands ➢ Began Buildout of Commercial Banking Infrastructure ➢ Restructured Mortgage Loan Origination Process 2014 ➢ Added Indirect Auto LOB ➢ Hired New Chief Credit Officer 2015 ➢ Opened Two Commercial LPOs 2017 ➢ Expanded Mortgage LOB in Metro Mark
Slide 17: Deposit/Retail Highlights
Deposit/Retail Highlights Deposits – Fiscal 2019 Deposits – Quarter-Ended 9/30/19 ▪ 6% increase in total deposits ($131MM) ▪ Total deposit growth of 29% annualized ($167MM) ▪ Core deposits* make up 69% of total deposits ▪ Core deposit growth of 25% annualized (101MM) ▪ Average cost of total deposits
Slide 18: Deposit Portfolio Mix
Deposit Portfolio Mix Dollars in thousands Total Total Total Deposits: Deposits: Deposits: $1,154,749 $2,048,451 $2,327,257 18
Slide 19: Capital Management
Capital Management First Ever Cash Dividend ▪ Initiated quarterly cash dividends of $0.06 payable to shareholders of record on November 21, 2018 ▪ Continuing quarterly cash dividend of $0.06 Stock Buy Backs (Dollars in thousands, except per Percent of share amounts) Outstanding Shares Number of Tang
Slide 20: Quarter Ended September 30, 2019 Highlights
Quarter Ended September 30, 2019 Highlights (Dollars in thousands, except per share amounts) Quarter Ended Change A. As Reported 09/30/2019 09/30/2018 Amount Percent 1. Net income $ 8,804 $ 7,790 $ 1,014 13% 2. Earnings per share (EPS) - diluted $ 0.49 $ 0.41 $ 0.08 20% 3. Return on assets (ROA) 0.9
Slide 21: Year Ended June 30, 2019 Highlights
Year Ended June 30, 2019 Highlights (Dollars in thousands, except per share amounts) Year Ended Change As Reported 06/30/2019 06/30/2018 Amount Percent Net Income $ 27,146 $ 8,235 $ 18,911 229.64% EPS - diluted $ 1.46 $ 0.44 $ 1.02 231.82% ROA 0.80% 0.25% 0.55% 220.00% Net interest margin (tax equiv
Slide 22: Value Drivers for HTBI
Value Drivers for HTBI ✓ Proven ability to grow organically ✓ Proven ability to grow through M&A ✓ Footprint in attractive metro markets with strong growth ✓ Strong experienced team of revenue producers ✓ Diversified loan portfolio including equipment finance/C&I lending ✓ Strong asset quality and c
Slide 23: Ready for What's Next
READY FOR WHAT’S NEXT Core Operating System Conversion - Spring 2020 Compelling Reasons For a New Operating System •Ability to offer best-of-breed digital and mobile services to our customers •Easier for our customer to bank with us via multiple channels •Process efficiencies and full integration •I
Slide 24: Questions and Comments
Questions and Comments ▪ In accordance with the Rules of Conduct, each shareholder or proxyholder has an opportunity to ask questions or make comments. ▪ After you are recognized, proceed to the microphone. Please identify yourself by stating your name and whether you are a shareholder or hold the p
Slide 25: Thank You, Shareholders, and HomeTrust Team!
THANK YOU, SHAREHOLDERS, AND HOMETRUST TEAM! 25
Slide 26: Non-GAAP Disclosure Appendix
Non-GAAP Disclosure Appendix 26
Slide 27: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation 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: the efficiency ratio; tangible book value; tangible b
Slide 28: Non-GAAP Disclosure Reconciliation: Efficiency Ratio
Non-GAAP Disclosure Reconciliation Set forth below is a reconciliation to GAAP of our efficiency ratio: 28
Slide 29: Non-GAAP Disclosure Reconciliation: Tangible Book Value
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: 29
Slide 30: Non-GAAP Disclosure Reconciliation: Net Income, EPS, ROE, ROA
Non-GAAP Disclosure Reconciliation Set forth to the right is a reconciliation to GAAP net income, EPS, ROE, and ROA as adjusted to exclude merger- related expenses, certain state tax expense, adjustments for the change in federal tax law, gain on sale of premises and equipment, impairment charges fo
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