Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — Shareholder Meeting (November 2018)
28 slides from Hometrust Bancshares's shareholder meeting presentation, Nov 27, 2018
Slide 1: Annual Shareholders' Meeting November 26, 2018 – An Inflection Point
ANNUAL SHAREHOLDERS’ MEETING NOVEMBER 26, 2018 An Inflection Point
Slide 2: Peggy Melville
Peggy Melville An Inflection Point 2
Slide 3: Annual Shareholders' Meeting November 26, 2018
ANNUAL SHAREHOLDERS’ MEETING NOVEMBER 26, 2018 An Inflection Point
Slide 4: 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 5: HomeTrust Bancshares, Inc. Overview
HomeTrust Bancshares, Inc. Overview Headquarters: Asheville, NC Exchange/Ticker: NASDAQ: HTBI Number of Founded: 1926 525 Employees: Locations: 43 (NC, SC, VA, TN) Stock Price: $26.01 Total Assets: $3.4 billion Price to TBV: 126% Total Loans: $2.6 billion Market Cap: $484.8 million Average Daily Tot
Slide 6: Foundation for Growth and Performance
Foundation for Growth and Performance Over the past six years we have: • Added 7 larger growing markets with 23 locations and $1.7 billion in assets • Hired key experienced team members to buildout infrastructure to transition from rural thrift to commercial bank in metro markets • Hired 36 new Comm
Slide 7: Current Focus
Current Focus pFoundation 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 • Reinitiating stock buy
Slide 8: Strong Footprint for Growth
613% Increase in Market Strong Footprint for Growth Population since 2012 An Inflection Point 8
Slide 9: Improving Earnings Performance
Improving Earnings Performance Dollars in thousands $35,000 $1.70 $1.64 $31,160 $1.50 $30,000 $1.38 4-Year EPS CAGR of 33% $1.30 $25,000 $25,886 $1.10 $20,000 $0.94 $23,370 $0.90 $0.70 $15,000 $0.70 $0.49 $0.61 $0.61 $0.50 $12,228 $11,784 $17,111 $10,000 $9,746 $0.30 $8,256 $7,790 $5,000 Net Income
Slide 10: ROA Trajectory – Adjusted Return on Assets
ROA Trajectory – Adjusted Return on Assets1 1.00% ROA increased 185.2% from FY14 0.94% 0.90% 0.80% 0.80% 0.70% 0.60% 0.58% 0.49% 0.50% 0.47% 0.45% 0.40% 0.30% 0.20% 0.10% 0.00% FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Q1 FY19 (2) (1) See Non-GAAP Disclosure Appendix (2) Unadjusted ROA for Q1 FY19 An
Slide 11: Improving Noninterest Income Ratio
Improving Noninterest Income Ratio 0.75% 31% Increase 0.68% 0.65% 0.61% 0.53% 0.55% 0.52% 0.52% 0.50% 0.45% 0.35% 0.25% FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Q1 FY19 An Inflection Point 11
Slide 12: Reducing Noninterest Expense Ratio
Reducing Noninterest Expense Ratio 3.20% 3.13% 16% Decrease 3.10% 3.02% 3.00% 2.89% 2.90% 2.80% 2.80% 2.70% 2.63% 2.64% 2.60% 2.50% 2.40% 2.30% FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Q1 FY19 An Inflection Point 12
Slide 13: Loan Highlights – Fiscal 2018
Loan Highlights – Fiscal 2018 Loan Portfolio Growth: . Organic loan growth of 8% ($171MM) . 24% growth in C&I loans ($28MM) . 17% growth in CRE ($127MM) . 23% growth in indirect auto loans ($32MM) Over the Past 12 Months: . Added 13 Commercial Revenue Producers . Added 12 Mortgage Loan Officers . Ne
Slide 14: New SBA Line of Business Strategy
New SBA Line of Business Strategy . Provides Net Gain on Sale additional Dollars in thousands lending products $1,200 for deeper 1st Quarter Fiscal 2018 Fiscal 2019 $1,000 customer service $1.1 million $898,000 . Government guaranty, $800 typically at 75% of the gross loan $600 amount $898 . Sale of
Slide 15: New Equipment Finance Strategy
New Equipment Finance Strategy Quarter-End Portfolio Balance . $90,000 5.30% Originated over 5.24% $70 million since $80,000 5.20% 5.17% January 2018 $70,000 5.03% 5.10% . Typical transaction $60,000 size ranges from 5.00% $25,000 to $1 $50,000 million, with an 4.81% 4.90% average size of $40,000 $8
Slide 16: Transitioning to a Community Bank Loan Portfolio
Transitioning to a Community Bank Loan Portfolio Increased commercial loan portfolio Dollars in millions by $924 million or 241% since 2013 $3,000 5-Year CAGR of 16.71% $2,500 $2,000 $1,500 Loan Balance Loan $1,150 $1,307 $750 $700 $1,000 $615 $518 $556 $411 $383 $336 $459 $223 $200 $182 1-4 Family
Slide 17: Total Loan Production
Total Loan Production $1 Dollars in thousands $983 Billion Million $20,228 1,000,000 $17,251 $28,453 $21,038 $84,707 $99,558 $49,794 $60,118 800,000 $697 Million $11,118 $305,153 $289,983 $528 $87,844 600,000 Million $54,598 $15,282 $53,010 $320 $49,841 $216,033 400,000 Million $15,814 $213,341 $33,
Slide 18: Transition of Deposit Portfolio Mix
Transition of Deposit Portfolio Mix Dollars in $1,000,000 Total Total Total Total Total Total 90% thousands Deposits: Deposits: Deposits: Deposits: Deposits: Deposits: $1,154,749 $1,583,046 $1,872,126 $1,802,696 $2,048,451 $2,196,253 $900,000 80% 77.44% 76.50% $800,000 75.45% 70% 69.18% $700,000 60%
Slide 19: Year Ended June 30, 2018 Highlights
Year Ended June 30, 2018 Highlights (Dollars in thousands, except per share amounts) Year Ended Change As Reported 06/30/2018 06/30/2017 Amount Percent Net Income (2) $ 8,235 $ 11,847 $ (3,612) (30%) EPS - diluted $ 0.44 $ 0.65 $ (0.21) (32%) ROA 0.25% 0.40% (0.15%) (38%) Net interest margin (tax eq
Slide 20: Quarter Ended September 30, 2018 Highlights
Quarter Ended September 30, 2018 Highlights (Dollars in thousands, except per share amounts) Quarter Ended Change As Reported 09/30/2018 09/30/2017 Amount Percent Net Income $ 7,790 $ 5,567 $ 2,223 40% EPS - diluted $ 0.41 $ 0.30 $ 0.11 37% ROA 0.94% 0.70% 0.24% 34% Noninterest income $ 5,613 $ 4,26
Slide 21: HTBI Value Drivers for Shareholders
HTBI Value Drivers for Shareholders 1. EPS Growth 2. Proven ability to grow organically 3. Proven ability to grow through M&A 4. Footprint in attractive metro markets with strong growth 5. Strong experienced team of revenue producers 6. Diversified loan portfolio including equipment finance/C&I lend
Slide 22: 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 23: Thank You Shareholders and HomeTrust Team!
THANK YOU SHAREHOLDERS AND HOMETRUST TEAM! An Inflection Point
Slide 24: Non-GAAP Disclosure Appendix
NON-GAAP DISCLOSURE APPENDIX An Inflection Point 24
Slide 25: 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 26: Non-GAAP Disclosure Reconciliation
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: An Inflection Point 26
Slide 27: Non-GAAP Disclosure Reconciliation
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 for
Slide 28: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation Set forth below is a reconciliation to GAAP of our efficiency ratio: An Inflection Point 28
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