Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — Shareholder Meeting (November 2014)
49 slides from Hometrust Bancshares's shareholder meeting presentation, Nov 24, 2014
Slide 1: Annual Meeting November 24, 2014
NOVEMBER 24, 2014 E SAS = ANNUAL MEETING
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: Home Trust Profile
Home Trust Profile x Founded in 1926 Operated as a mutual savings bank * 5 mutual combinations from 1996 — 2010 ¢ 3/31/12 = $1.6 billion in assets, $171 million in capital * Converted to stock in 2012 and raised $211.6 million ¢ Established goal of organic and acquisition growth « Four acquisitions
Slide 4: Asset Growth Since 1996
Asset Growth Since 1996 * Total assets have doubled since 2008 =Assets =Loans = Deposits $2530 $2,500 $2,000 S164 $1,638 1,500 (9260) $1,000 $500 30 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ProForma 930/14" (1) Financial data as of 9/2014; pro fo
Slide 5: Strategic Operating Committee
Strategic Operating Committee ~ Yrs in Yrs Leader Role Age Banking wiHTB Dana Stonestreet Chairman, President & Chief Executive 61 36 25 Officer Tony VunCannon Senior Vice President & Chief Financial 49 26 22 Officer Hunter Westbrook Senior Vice President & Chief Banking Officer 51 27 3 Howard Selli
Slide 6: Capital Management
Capital Management x 1. Our first priority is to leverage capital * Successful leverage can achieve up to 10 times the EPS accretion of buybacks 2. Stock repurchases below TBV * Utilize excess capital * Increase TBV per share * Increase EPS
Slide 7: Stock Repurchases
Stock Repurchases x #of | %of | Announced Shares | Total | Total $ February 14,2013 846,400 4% 13,299,039 August 27, 2013 1,041,245 5% 17,055,222 January 1, 2014 989,183 5% 15,592,617 November 19, 2014 1,023,266 5% 16,053,122" 3,900,094 19% 62,000,000 (1) Approximation Tt just better here 6
Slide 8: Leveraging Capital
Leveraging Capital x Acquisition of 3 Banks and 10 Branches =$ 85 million” 58% Stock Repurchases (when 4" one 62 million” 42% complete) $147 million 100% (1) Approximation
Slide 9: Financial Information
FINANCIAL INFORMATION TONY VUNCANNON SVP/CHIEF FINANCIAL OFFICER
Slide 10: Year-End June 30, 2014 Highlights
Year-End June 30, 2014 Highlights x ¢ Net income of $10.3 million, compared to $9.0 million in the prior year ¢ Net income before merger-related expenses, net of tax, of $12.2 million, compared to $9.1 million in the prior year ¢ Earnings per share = $.54 versus $.45 per share in the prior year * Re
Slide 11: Quarter Ended September 30, 2014 Highlights
Quarter Ended September 30, 2014 Highlights x ¢ Net income of $2.3 million, compared to $3.3 million in prior year « EPS $.12 versus $.17 in the prior year ¢ Primary differences in net income: 2014 2013 | Change Recovery of loan losses $ 250,000 $ 2,300,000 $(2,050,000) Merger-related expenses (1,42
Slide 12: Net Income
Net Income ~ $15.0 $10.3 $10.0 $7.0 i. 5 5.0 “5 23 $0.0 T T T 1 -$5.0 -$10.0 -$14.7 -$15.0 2010 2011 2012 2013 2014 2015 For the year ended June 30, e eres In millions just belter
Slide 13: Net Interest Income
Net Interest Income x $80.0 S744 $70.0 g00.8 $51.6 - $53.1 $54.8 $50.0 - : $40.0 $30.0 $20.0 $10.0 $0.0 : 1 2010 2011 2012 2013 2014 2015 Annualized For the year ended June 30, in yellow In millions
Slide 14: Net Interest Margin
Net Interest Margin ~ 4.50% 4.02% 3.99% 4.00% 3.50% 3.00% 2.50% 2.00% 2010 2011 2012 2013 2014 2015 (3 mos. ended For the year ended June 30, 9/30/14)
Slide 15: Provision for Loan Losses
Provision for Loan Losses x $50.0 $42.8 $40.0 38.6 $30.0 $20.0 $15.6 $10.0 $0.0 = $08 -$10.0 $6.3 2010 2011 2012 2013 2014 2015 (3 mos. ended For the year ended June 30, 9/30/14) In millions just belter
Slide 16: Loan Portfolio Mix
Loan Portfolio Mix x $1 800.0 $1,609 $1,600.0 $1,498 = 1-4 Family $1,400.0 $4,334 “ $1,290 $1,232 — . eommercial Real $1,200.0 = Construction/ Land/ Development $1,000.0 mHome Eauity $800.0 = Municipal Leases $600.0 = Other $400.0 $200.0 $0.0 1 T T T T 1 2010 2011 2012 2013 2014 9/30/14 As of June 3
Slide 17: Total Loans Originated
Total Loans Originated x $500.0 $440 $260 $422 = 1-4 Family $400.0 | = Commercial Real Estate $318 = Construction/ Land/ $300.0 Home Eeuity Municipal Leases $200.0 = Other $122 $100.0 Ms $0.0 7 T T 7 T 1 2010 2011 2012 2013 2014 2015 (3 mos. ended For the year ended June 30, 9/30/14) In millions
Slide 18: Total Deposits
Total Deposits x $2,000 $1,992 $1,750 $1,500 $1,250 $1,000 $750 $500 $250 oi 47% $0 2010 2011 2012* 2013 2014 Proforma 7 i ef 2 F 9/30/14** = Time Deposits = Core Deposits (checking, savings, money market) As of June 30, In millions *Excludes $227 million in stock conversion escrow account *Includes
Slide 19: Checking Accounts
Checking Accounts $700 $600 $572 $500 $419 $400 $300 56 $204 S231 1 $200 - $100 $0 T r r r r 2010 2011 2012 2013 2014 Proforma 9/30/14* As of June 30, In millions “Includes deposits acquired in the branch purchase from Bank of America as of 11/14/14.
Slide 20: Capital Ratios
Capital Ratios x 25.00% 20.00% 199 20% 15.00% 10.00% 5.00% 0.00% Leverage Ratio Tier | Risk-Based Total Risk-Based Capital Ratio Capital Ratio = "Well-Capitalized" as defined by Bank regulations = HTBI As of September 30, 2014
Slide 21: Asset Quality
ASSET QUALITY
Slide 22: NPAs to Total Assets
NPAs to Total Assets x 6.0% 5.1% 5.0% 4AT% 4.0% 3.9% 28% 3.0% 3.0% 27% 2.0% 1.0% 0.0% 1 1 1 1 1 1 2010 2011 2012 2013 2014 9/30/14 =REO sLoans As of June 30,
Slide 23: Non-performing Loans: By Type
Non-performing Loans: By Type x $80.0 $68.6 $70.0 $64.2 m Other $60.0 = Commercial Real $50.0 ~ Estate $40.0 m= Home Equity $30.0 m 1-4 Family $20.0 = Construction/Land/ $10.0 Development $0.0 7 7 7 1 1 2011 2012 2013 2014 = =9/30/14 As of June 30, In millions
Slide 24: Net Loans Charged-off
Net Loans Charged-off x $35.0 $34.4 $30.6 $30.0 = Other $25.0 -—g579 = Commercial Real $20.0 Estate : = Home Equity $15.0 $10.0 = 1-4 Family $5.0 - dl = 3 = Construction/Land/ $0.1 Development $0.0 7 1 1 1 2010 2011 2012 5 ie 2015 For the year ended June 30, 8 cotta In millions
Slide 25: Allowance for Loan Losses to Total Non-acquired Loans
Allowance for Loan Losses to Total Non-acquired Loans x 4.00% 3.77% 3.50% 3.23% 3.00% 2.85% 9.75% _ 2.08% 1.97% 2.00% : 1.50% 1.00% 0.50% 0.00% : 2010 2011 2012 2013 2014 9/30/14 As of June 30, In millions
Slide 26: 2013-2014 Accomplishments
2013-2014 ACCOMPLISHMENTS HUNTER WESTBROOK, SVP/CHIEF BANKING OFFICER
Slide 27: 2013-2014 Accomplishments
2013-2014 Accomplishments ~ * Creating Clarity * Creating New Customer Channels * Creating New Customers * Creating Expanded Relationships * Creating Scale
Slide 28: Creating Clarity
Creating Clarity ~ * Conversion to National Bank Charter August 2014 * Unified seven banking divisions under HomeTrust name — September 2014 « Line of business infrastructure growth * Commercial — Credit and Sales Force * Mortgage * Retail « Auto
Slide 29: Creating New Customer Channels
Creating New Customer Channels x * Added indirect auto finance line of business — January 2014 * Relationship Managers from 6 to 31 « Legacy HTB —5 * Via Acquisition — 16 * Lift Out of Banking Teams — 6 * Hired - 4 * Hired experienced commercial lending teams in new markets (Roanoke, Raleigh)
Slide 30: Creating New Customers
Creating New Customers ~ « New customer generation «Experian pre-screened mailings - DDA/HELOC ¢ Indirect auto lending — potential 10,000 new customers over 3 years ¢ Other direct mail campaigns on checking « Refer a Friend — earn up to $500 « Universal Banker «Bank of America branch purchase Debit
Slide 31: Creating Expanded Relationships
Creating Expanded Relationships ~ * Cross-sell and deepening customer wallet share On boarding new customers — first 120 days Higher touch on-boarding of indirect auto customers Phone calls on account opening anniversary Experian mailings to existing customers
Slide 32: Creating Scale
Creating Scale ~ * Hired a new chief credit officer — March 2014 * 3 Senior Credit Officers * Combined Credit Experience of 119 years « Expanded commercial banking ¢ Full Array of Commercial Banking Credit Products ¢ Small Business Banking * Treasury Management Products and Services * Fiserv contrac
Slide 33: Repositioned for Growth
REPOSITIONED FOR GROWTH DANA STONESTREET, CHAIRMAN/PRESIDENT/CEO
Slide 34: Strategy, Execution, Repositioned for Growth
¢ (A) Strategy * (B) Execution ¢ (C) Repositioned for Growth
Slide 35: (A) Strategy
(A) Strategy x Business & Operating Strategy & Goals ¢ “Our primary objective is to continue to operate and grow HometTrust Bank as a well-capitalized, profitable, independent community banking organization.” ¢ “Expand our presence in contiguous larger markets that will support organic growth.” * “C
Slide 36: (B) Execution: Acquisitions & Expansions
(B) Execution x Acquisitions & Expansions Commercial Description Locations RM’s July 31, 2013 | BankGreenville $101 million 1 location May 2014 Additional Pelham 4 Rd location May 31,2014 Jefferson Bancshares, Inc. $489 million 12 locations — 1 East Tennessee July 21, 2014 | Roanoke Loan Production
Slide 37: Acquisition Pricing
Acquisition Pricing x 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 $443 36% Stock $ 25.6 4) 10/22/14 FTB purchases TrustAtlantic (Raleigh) — TBV 173% 2) 11/18/14 BNC purchases Valle
Slide 38: Our Franchise Footprint
Our Franchise Footprint > Ts just better here?
Slide 39: Growth Since Conversion
Growth Since Conversion (past 24 months) x jutual Conversion ProForma (?) 9/30/2012 9/30/2014 Change Since Conversion Total Assets $ 1,603 $ 2,530 $ 927 58% Total Loan Portfolio $ 1,203 $ 1,609 $ 406 34% 1-4 Family 611 656 45 7% HELOC's & Consumer 143 179 36 25% Commercial Real Estate 232 455 223 96
Slide 40: Loan Portfolio Composition
Loan Portfolio Composition Loans: At Time of Conversion * Loans: 9/30/14 With Recent Acquisitions Other ‘Other |commercial Commercial 11% 12% Construction Se & Developm Development . 7% 8% = — 7a Family Commercial 51% Real Estate 19% Commercial Real Estate 28% HELOCs & - ‘Consumer {Commercial 11% 40
Slide 41: Deposit Portfolio Composition
Deposit Portfolio Composition ~ Deposits: At Time of Conversion Deposits: 9/30/14 Pro Forma With RecentAcquisitions ®) [Transaction Accounts ime [Transaction ‘ime ae Deposits Accounts Deposits 35% 29% 50% MMDAT maa Savings ee 29% 36% Core Core Deposits Deposits 50% 65% (2) Fanci! dataas of 320/12 (@
Slide 42: Market Demographics
Market Demographics Commercial Relationship Population _ Managers (CRMs) Orginal Markets at Conversion Asheville, NC/MSA 442.531 Lexington, NC/Davidson County 163,665, ‘Shelby, NC/Cleveland County & Cherryville, NC 103,644 Eden, NC/Rockingham County 92.607 Forest City, NC/Rutherford County 68.177 Tr
Slide 43: (C) Repositioned for Organic Growth and EPS Growth
(C) Repositioned for Organic Growth x And EPS Growth 1. Added Six Markets Larger than Asheville MSA 2. Added 25 new locations 3. Added 25 Commercial Relationship Managers 4. Achieved 7% annualized loan growth in 1% Qtr. 5. Grew Core deposits by $700 million 6. Moved Loan/Deposit Ratio from 104% to 8
Slide 44: Leverage 2013-2014 Accomplishments
Leverage 2013 — 2014 Accomplishments ~ * Clarity * New Customer Channels « New Customers ¢ Expanded Relationships * Scale
Slide 45: Fiscal 2015 Focus
Fiscal 2015 Focus x * Integration * Execution * Organic Growth * Revenue/ EPS Growth Create Sustainable Value For Shareholders! Tt just better here 44
Slide 46: Thank You
Thank You Stockholders and HometTrust Team!
Slide 47: F. Ed Broadwell, Jr.
F. Ed Broadwell, Jr. x 1965—- President Director & CEO 27-— Agein 1965 48-— Years as CEO 49-— Years on the Board 2013-— NCBA Hall of Fame $10 Million— Assets in 1965 $2.5 Billion— Assets as he retires today
Slide 48: Questions and Comments
Questions and Comments x * In accordance with the Rules of Conduct, each stockholder 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 stockholder or hold the
Slide 49: Annual Meeting November 24, 2014
NOVEMBER 24, 2014 E SAS = ANNUAL MEETING
HomeTrust Bancshares — Shareholder Meeting (November 2014) on 6ix