Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — Janney CEO Forum 2024
30 slides from Hometrust Bancshares's conference presentation, Jan 30, 2024
Slide 1: Janney CEO Forum, January 31 – February 1, 2024
January 31 – February 1, 2024 Janney CEO Forum
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, 2023 • Market data as of January 25, 2024 • Shares repurchased from February 19, 2013 to December 31, 2023 (last transaction in May 2022) 3 HomeTrust Bancshares, Inc. Overview $4.7B Assets NASDAQ: HTBI Headquarters: Asheville, NC $3.6B/$3.7B Loans/Deposits Founded
Slide 4: Recent Recognition
4 Recent Recognition Named one of the 2023 Top 20 “Great Employers to Work for in NC” by the Best Companies Group Voted “Best Small Bank in North Carolina” by Newsweek for three consecutive years (2021 - 2023) NC, VA, TN and GA were the top 4 states on CNBC’s list of America’s Top States for Busines
Slide 5: Investment highlights
5 Footprint in attractive metro markets experiencing growth rates above the national average (See Pages 9-10) Successful transition to a commercial bank (See Pages 6-8, 11-15) • Expansion of lines of business, adding further diversity to our loan portfolio • Strong experienced team of revenue produc
Slide 6: Business transformation timeline
6 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 7: Pyramid of Success
7 High Performance Deposit Growth Maturing Lines of Business Business Transformation Engaged Employees Enterprise Risk Management Franchise and Line of Business Investments Our Results Our Business Objectives Our Foundation Pyramid of Success
Slide 8: Business Transformation: Phases of Progress
8 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) Introduce
Slide 9: Geographic Expansion – Focus on High-Growth Markets
9 Geographic Expansion – Focus on High-Growth Markets Source: S&P Global Market Intelligence for MSA Demographics Raleigh 7.3% Population Growth 9.4% HH Income Growth Charlotte 5.8% Population Growth 10.6% HH Income Growth Atlanta 4.4% Population Growth 8.7% HH Income Growth Greenville 5.2% Populati
Slide 10: Geographic Expansion – Focus on High-Growth Markets (Continued)
10 Geographic Expansion – Focus on High-Growth Markets (Continued)
Slide 11: Branch Heavy and Branch-Lite Markets
11 “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 12: Loan Portfolio Transformation: Diversified Commercial Bank
c 26% 15% 11% 11% 13% 16% 8% Present – 12/31/23 Total Loans of $3,640,022 12 (Dollars in thousands) * Equipment Finance line of business began in February of 2018. 24% 9% 10% 9% 28% 20% Past – 12/31/17 Total Loans of $2,419,256 Loan Portfolio Transformation: Transition to a Diversified Commercial Ba
Slide 13: Portfolios to Highlight: Non-Owner Occupied CRE & Construction
13 (Dollars in thousands, as of December 31, 2023) Portfolios to Highlight: Non-Owner Occupied CRE & Construction and Development $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 Non-Owner Occupied CRE Composition NOO CRE – Office Largest 5 Relationships: $6,574,000 $
Slide 14: Portfolios to Highlight: SBA Loans & Equipment Finance
14 Portfolios to Highlight: SBA Loans & Equipment Finance C&I 31% Hotel 29% Retail 28% Other 8% Office 4% SBA Portfolio Total Balance $144,639 Guaranteed Balance $51,574 (Dollars in thousands, as of December 31, 2023) $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 Equipment Finance (“EF”) Comp
Slide 15: Deposit Franchise
c 22% 16% 39% 23% Present – 12/31/23 Total Deposits of $3,661,373 15 (Dollars in thousands) Deposit Franchise Additional Information on Portfolio (as of 12/31/23): • The balance of uninsured deposits was $907.4 million, or 24.8% of total deposits, which included $268.0 million of collateralized depo
Slide 16: Improvement in Profitability Metrics
16 $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 2019 2020 2021 2022 2023 Adjusted Earnings Performance Adjusted Net Income Adjusted Diluted EPS 0.25% 0.45% 0.65% 0.85% 1.05% 1.25% 1.45% 2019 2020 2021 2022 2023 Adjusted Return on Assets (Dollars in thousa
Slide 17: Strong Asset Quality and Credit Discipline
* Reflects the adoption of CECL on July 1, 2020. 17 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% $- $1,250 $2,500 $3,750 $5,000 $6,250 $7,500 2019 2020 2021 2022 2023 Net Charge-Offs (“NCO”) and NCO to Average Loans NCOs NCO/Avg. Loans 0.65% 0.90% 1.15% 1.40% 1.65% $- $10,000 $20,000 $30,000 $40,000 $50,000
Slide 18: Strong Capital Position to Support Continued Growth
18 6% 7% 8% 9% 10% 11% 12% 13% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 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% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 Tier I Capital (to Total A
Slide 19: Capital Strategy: Dividends and Stock Buybacks
19 0% 5% 10% 15% 20% 25% 30% $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 2019 2020 2021 2022 2023 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 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 Market Price and Price
Slide 20: Valuation – Peer Comparison: Return on Assets
20 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% C H C O F C B C S Y B T C T B I R B C A A P E B O C IV B H T B I C C B G C C N E F M N B U V S P C A R E S M B K S F S T F R S T Return on Assets (“ROA”) Valuation – Peer Comparison (Last 12 Months Ended September 30, 2023) ROA 1.22% • S
Slide 21: Valuation – Peer Comparison: Price to Earnings
21 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 F R S T S F S T C A R E S M B K C H C O S Y B T F C B C R B C A A F M N B C T B I P E B O C C B G U V S P H T B I C C N E *C IV B Stock Price to Earnings per Share (“EPS”) Valuation – Peer Comparison (Continued) (For the Year Ended December 31, 2023)
Slide 22: Valuation – Peer Comparison: Price to Tangible Book Value
22 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 C H C O F M N B S Y B T F C B C P E B O *C IV B C C B G C T B I R B C A A S M B K F R S T H T B I C C N E U V S P C A R E S F S T Stock Price to Tangible Book Value (“TBV”) per Share Valuation – Peer Comparison (Continued) Stock Price $26.92 TBV per Share $
Slide 23: Merger with Quantum Capital Corp.
1 Financial highlights as of the merger date of February 12, 2023 23 Highlights Financial Highlights1 Balance Sheet Loan credit mark $3.0M Loan interest rate mark $7.9M Provision for non-PCD loans + off balance sheet exposures $5.3M Allowance for PCD loans $0.4M Core deposit intangibles $12.2M Fair
Slide 24: Quarterly Highlights
24 Quarterly Highlights 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Net Income Per Share Basic $ 0.79 $ 0.88 $ 0.91 $ 0.40 $ 0.90 $ 0.61 Diluted $ 0.79 $ 0.88 $ 0.90 $ 0.40 $ 0.90 $ 0.60 Performance Ratios Return on assets (ROA) 1.21 % 1.33 % 1.39 % 0.69% 1.54 % 1.02 % Return on eq
Slide 25: Quarterly Highlights: HomeTrust vs. Top Exchange Traded Banks
25 Quarterly Highlights: HomeTrust vs. Top 200 Exchange Traded Banks • Source: S&P Capital IQ Pro/Piper Sandler “4Q2023 Earnings Release Summary: Key Metrics & Calendar” dated January 26, 2024 As of or for the quarter ended 12/31/2023 Nationwide Mean HomeTrust +/- Variance Tangible Common Equity / T
Slide 26: Quarterly Highlights – Net Interest Margin
26 Quarterly Highlights – Net Interest Margin 4.10% 4.53% 4.55% 4.32% 4.02% 4.02% 4.09% 4.51% 4.52% 4.25% 4.02% 4.04% 3.75% 4.00% 4.25% 4.50% 4.75% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 NIM Reported NIM Core* * Core net interest margin excludes accretion income and other loan fees. See App
Slide 27: Appendix – Non-GAAP Reconciliation
27 Set forth is a reconciliation to GAAP of our efficiency ratio: 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) 12/31/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 Noninterest expense 123,089$
Slide 28: Appendix – Non-GAAP Reconciliation (Continued)
28 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) 12/31/2023 12/31/2022 12/31/2021 12/31/2
Slide 29: Appendix – Non-GAAP Reconciliation (Continued)
29 Appendix – Non-GAAP Reconciliation (Continued) Set forth is a reconciliation to GAAP of our quarterly efficiency ratio: (Dollars in thousands) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Noniinterest expense 29,781$ 29,564$ 30,911$ 32,833$ 26,076$ 26,089$ Less: merger-related ex
Slide 30: 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 30