Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — Q4 2024 Earnings Presentation
32 slides from Hometrust Bancshares's earnings presentation, Jan 30, 2025
Slide 1: 4th Quarter 2024 Investor Presentation
4th 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
• Financial data as of December 31, 2024 • Market data as of January 22, 2025 • Shares repurchased from February 19, 2013 to December 31, 2024 (last transaction in June 2024) 3 HomeTrust Bancshares, Inc. Overview $4.6B Assets NASDAQ: HTBI Headquarters: Asheville, NC $3.6B/$3.8B Loans/Deposits Founde
Slide 4: Our Goal: Become a High-Performing, Regional Community Bank
4 Ranked 98th in Forbes’ 2024 America’s Top 100 Best Banks Ranked 34th in Bank Director’s Best U.S. Banks 2024 List of Less than $5 billion Our Goal: Become a High-Performing, Regional Community Bank Ranked 35th in S&P's Top 50 Community Banks $3B-$10B
Slide 5: Our Strategy to Reach Our Goal: Become a Best Place to Work
5 Our Strategy to Reach Our Goal: Become a Best Place to Work
Slide 6: Refreshed Leadership Team
6 • 7 of our 8 executive officers have joined the Company since our 2012 mutual to stock conversion, joining from leadership positions at institutions such as PNC, SouthState, SunTrust, TCF and Wells Fargo • 10 of our 11 board members have been appointed since our 2012 conversion, including the addi
Slide 7: Quarterly Highlights: Tangible Book Value Per Share
7 Quarterly Highlights: Tangible Book Value Per Share $24.53 $23.93 $24.69 $25.47 $26.39 $27.10 $27.73 $28.57 $29.24 $20.00 $21.00 $22.00 $23.00 $24.00 $25.00 $26.00 $27.00 $28.00 $29.00 $30.00 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Decline durin
Slide 8: Investment highlights
8 Footprint in attractive metro markets experiencing growth rates above the national average (See Pages 12-13) Successful transition to a commercial bank (See Pages 6, 9-11, 14-18) • Expansion of lines of business, adding further diversity to our loan portfolio • Strong experienced team of revenue p
Slide 9: Transformation timeline
9 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 10: Strategic Framework
Strategic Framework Focused Deposit Growth Organizational Maturity @® ft Priorities Foundation High Performance Best Place to Work Added Shareholder Value Engaged Employees Collaborative Corporate Culture Great Markets for Business Strong Balance Sheet 10
Slide 11: Business Transformation: Phases of Progress
11 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) Introduc
Slide 12: Geographic Expansion – Focus on High-Growth Markets
12 Raleigh 7.4% Population Growth 11.8% HH Income Growth Charlotte 6.6% Population Growth 10.3% HH Income Growth Atlanta 4.4% Population Growth 7.7% HH Income Growth Greenville 6.4% Population Growth 6.3% HH Income Growth (2025 to 2030 Projected Changes) Knoxville 5.9% Population Growth 10.7% HH Inc
Slide 13: Geographic Expansion – Focus on High-Growth Markets (continued)
13Source: U.S. Census Bureau, Vintage 2023 Population Estimates Geographic Expansion – Focus on High-Growth Markets (continued)
Slide 14: Hybrid Branch Strategy
14 “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 15: Loan Portfolio Transformation: Transition to a Diversified Loan Portfolio
24% 9% 10% 9% 28% 20% Past – 12/31/17 Total Loans of $2,419,256 c 27% 15% 9% 13% 11% 17% 8% Present – 12/31/24 Total Loans of $3,648,299 15 (Dollars in thousands) Loan Portfolio Transformation: Transition to a Diversified Loan Portfolio * Equipment Finance line of business began in February of 2018.
Slide 16: Portfolios to Highlight: Non-Owner Occupied CRE
16 (Dollars in thousands, as of December 31, 2024) Portfolios to Highlight: Non-Owner Occupied CRE Hospitality Other Healthcare Multifamily Shopping Centers Other Retail Office Industrial $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 Non-Owner Occupied CRE Composition NOO C
Slide 17: Portfolios to Highlight: SBA Loans & Equipment Finance
17 Portfolios to Highlight: SBA Loans & Equipment Finance Hotel 31% C&I 29% Retail 27% Other 9% Office 4% SBA Portfolio Total Balance $138,889 Guaranteed Balance $44,658 (Dollars in thousands, as of December 31, 2024) $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 Equipment Finance (“EF”) Com
Slide 18: Deposit Franchise
c 18% 15% 40% 27% Present – 12/31/24 Total Deposits of $3,779,203 18 (Dollars in thousands) Deposit Franchise 15% 23% 41% 21% Past – 12/31/17 Total Deposits of $2,108,208 1.00% 1.50% 2.00% 2.50% 3.00% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Cost of Deposits
Slide 19: 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 Adj. Diluted EPS 19 0.25% 0.45% 0.65% 0.85% 1.05% 1.25% 1.45% 2020 2021 2022 2023 2024 Adjusted Return on Assets (Dollars in thousands,
Slide 20: Strong Asset Quality and Credit Discipline
20 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2020 2021 2022 2023 2024 Net Charge-Offs (“NCO”) and NCO to Average Loans NCOs NCO/Avg. Loans 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 12/31/20 12/31/21 12/31/22
Slide 21: Strong Capital Position to Support Continued Growth
21 6% 7% 8% 9% 10% 11% 12% 13% 14% 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 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% 13% 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Tier I Capital (to
Slide 22: Capital Strategy: Dividends and Stock Buybacks
22 0% 5% 10% 15% 20% 25% 30% $- $0.10 $0.20 $0.30 $0.40 $0.50 2020 2021 2022 2023 2024 Cash Dividends Dividend/Share Dividend Payout Ratio 60% 75% 90% 105% 120% 135% $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Market Price and Price to Tangi
Slide 23: Valuation – Peer Comparison: Return on Assets
23 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 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 G A B C C C B G H T B I U V S P F B M S C C N E F M N B C B A N C IV B S M B K C A R E S F S T F R S T Return on Assets (“ROA”) Valuation – Peer Comparison HTBI ROA 1.22% Median (Nine months e
Slide 24: Valuation – Peer Comparison: Price to Earnings
24 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 F R S T S F S T C A R E S Y B T F C B C C H C O G A B C S M B K F M N B F B M S C B A N R B C A .A C C B G C T B I U V S P H T B I C C N E C IV B P E B O Stock Price to Earnings per Share (“EPS”) Valuation – Peer Comparison (Continued) (Nine months ended Sept
Slide 25: Valuation – Peer Comparison: Price to Tangible Book
25 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 C H C O S Y B T F M N B F C B C G A B C C C B G F B M S P E B O R B C A .A C T B I S M B K C B A N H T B I U V S P C IV B F R S T C A R E C C N E S F S T Stock Price to Tangible Book Value (“TBV”) per Share Valuation – Peer Comparison (Continued) HTBI Stock
Slide 26: Quarterly Highlights
26 Quarterly Highlights 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Net Income Per Share Basic $ 0.83 $ 0.77 $ 0.73 $ 0.88 $ 0.79 $ 0.88 Diluted $ 0.83 $ 0.76 $ 0.73 $ 0.88 $ 0.79 $ 0.88 Performance Ratios Return on assets (ROA) 1.27 % 1.17 % 1.13 % 1.37 % 1.21 % 1.33 % Return on e
Slide 27: Quarterly Highlights: Net Interest Margin
27 Quarterly Highlights: Net Interest Margin * Core net interest margin excludes accretion income and other loan fees. 4.53% 4.55% 4.32% 4.02% 4.02% 4.02% 4.08% 4.00% 4.09% 4.51% 4.52% 4.25% 4.02% 4.04% 3.99% 4.03% 3.95% 3.95% 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 20
Slide 28: Reconciliation of efficiency ratio
28 Set forth is a reconciliation to GAAP of our efficiency ratio: (Dollars in thousands) 12/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Noninterest expense 124,668$ 123,089$ 105,423$ 130,578$ 101,998$ Less: contract renewal consulting fee (2,965) - - - - Less: merger-related expense - (4,741
Slide 29: Reconciliation of 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) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Total stockholder's equity 551,758$ 540,004$ 523,628$ 513,173$ 499,893$ Less: goodwill, core de
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) (Dollars in thousands) 12/31/2024 12/31/2023 12/31/2022 12/31/2
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) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Non interest expense 34,009$ 30,585$ 30,210$ 29,864$ 29,781$ 29,564$ Less: contract renewal
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