Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — Q3 2024 Earnings Presentation
32 slides from Hometrust Bancshares's earnings presentation, Nov 6, 2024
Slide 1: 3rd Quarter 2024 Investor Presentation
3rd 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 September 30, 2024 • Market data as of October 31, 2024 • Shares repurchased from February 19, 2013 to September 30, 2024 (last transaction in June 2024) 3 HomeTrust Bancshares, Inc. Overview $4.6B Assets NASDAQ: HTBI Headquarters: Asheville, NC $3.7B/$3.8B Loans/Deposits Foun
Slide 4: Recent Recognition
4 Recent Recognition * Newsweek did not conduct “Best Bank” awards for 2024 NC, VA, TN and GA were the top 4 states on CNBC’s list of America’s Top States for Business 2023 Ranked 98th in Forbes’ 2024 America’s Top 100 Best Banks Ranked 35th in S&P's Top 50 Community Banks $3B-$10B Certified as a Mo
Slide 5: Refreshed Leadership Team
5 • Our Focus • Hire individuals with the experience and skill sets needed to achieve: • Our goal of becoming a high-performing, regional community bank • Our strategy of becoming a best place to work • Our Execution • 7 of our 8 executive officers have joined the Company since our 2012 mutual to st
Slide 6: Quarterly Highlights: Tangible Book Value Per Share
6 Quarterly Highlights: Tangible Book Value Per Share $23.70 $24.53 $23.93 $24.69 $25.47 $26.39 $27.10 $27.73 $28.57 $20.00 $21.00 $22.00 $23.00 $24.00 $25.00 $26.00 $27.00 $28.00 $29.00 $30.00 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Decline during
Slide 7: Investment highlights
7 Footprint in attractive metro markets experiencing growth rates above the national average (See Pages 11-12) Successful transition to a commercial bank (See Pages 5, 8-10, 13-17) • Expansion of lines of business, adding further diversity to our loan portfolio • Strong experienced team of revenue p
Slide 8: Business transformation timeline
8 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 9: Pyramid of Success
9 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 10: Business Transformation: Phases of Progress
10 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 11: Geographic Expansion – Focus on High-Growth Markets
11 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% Population Growth 7.7% HH Income Growth (2024 to 2029 Projected Changes) Knoxville 4.4% Population Growth 9.8% HH Incom
Slide 12: Geographic Expansion – Focus on High-Growth Markets (continued)
12Source: U.S. Census Bureau, Vintage 2023 Population Estimates Geographic Expansion – Focus on High-Growth Markets (continued)
Slide 13: Hybrid Branch Strategy
13 “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 14: 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% 10% 12% 12% 17% 7% Present – 9/30/24 Total Loans of $3,698,892 14 (Dollars in thousands) Loan Portfolio Transformation: Transition to a Diversified Loan Portfolio * Equipment Finance line of business began in February of 2018.
Slide 15: Portfolios to Highlight: Non-Owner Occupied CRE
15 (Dollars in thousands, as of September 30, 2024) Portfolios to Highlight: Non-Owner Occupied CRE Hospitality Healthcare Other Other Retail Multifamily Office Shopping Centers Industrial $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 Non-Owner Occupied CRE Composi
Slide 16: Portfolios to Highlight: SBA Loans & Equipment Finance
16 Portfolios to Highlight: SBA Loans & Equipment Finance C&I 30% Hotel 30% Retail 28% Other 8% Office 4% SBA Portfolio Total Balance $138,719 Guaranteed Balance $46,529 (Dollars in thousands, as of September 30, 2024) $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 Equipment Finance (“EF”) Co
Slide 17: Deposit Franchise
c 18% 14% 41%27% Present – 9/30/24 Total Deposits of $3,761,588 17 (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% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Cost of Deposits
Slide 18: 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 (Annualized) Adj. Net Income Adj. Diluted EPS (Annualized) 18 0.25% 0.45% 0.65% 0.85% 1.05% 1.25% 1.45% 2020 2021 2022 2023 Q3 2024* Adj
Slide 19: Strong Asset Quality and Credit Discipline
19 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 2020 2021 2022 2023 2024 Net Charge-Offs (“NCO”) and NCO to Average Loans NCOs NCOs (Annualized) NCO/Avg. Loans 0.65% 0.90% 1.15% 1.40% 1.65% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 1
Slide 20: Strong Capital Position to Support Continued Growth
20 6% 7% 8% 9% 10% 11% 12% 13% 12/31/20 12/31/21 12/31/22 12/31/23 9/30/24 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% 12/31/20 12/31/21 12/31/22 12/31/23 9/30/24 Tier I Capital (to Total Adj
Slide 21: Capital Strategy: Dividends and Stock Buybacks
21 0% 5% 10% 15% 20% 25% 30% $- $0.10 $0.20 $0.30 $0.40 $0.50 2020 2021 2022 2023 2024 Annualized Cash Dividends Dividend/Share Dividend/Share Annualized 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 9/3
Slide 22: Valuation – Peer Comparison: Return on Assets
22 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% C H C O R B C A .A F C B C C T B I S Y B T P E B O G A B C C C B G H T B I F B M S U V S P F M N B C C N E S M B K C B A N C IV B C A R E S F S T F R S T Return on Assets (“ROA”) Valuation – Peer Comparison HTBI ROA 1.25% Median (Six mon
Slide 23: Valuation – Peer Comparison: Price to Earnings
23 0.0 5.0 10.0 15.0 20.0 25.0 S F S T C A R E S Y B T C H C O G A B C F C B C S M B K C T B I F M N B F B M S C B A N R B C A .A H T B I C C N E C IV B C C B G P E B O F R S T U V S P Stock Price to Earnings per Share (“EPS”) Valuation – Peer Comparison (Continued) (Six months ended June 30, 2024)
Slide 24: Valuation – Peer Comparison: Price to Tangible Book Value
24 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 G A B C F C B C P E B O C C B G F B M S C T B I R B C A .A S M B K H T B I C IV B C B A N U V S P C A R E C C N E F R S T S F S T Stock Price to Tangible Book Value (“TBV”) per Share Valuation – Peer Comparison (Continued) HTBI Stock
Slide 25: Quarterly Highlights
25 Quarterly Highlights 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Net Income Per Share Basic $ 0.77 $ 0.73 $ 0.88 $ 0.79 $ 0.88 $ 0.91 Diluted $ 0.76 $ 0.73 $ 0.88 $ 0.79 $ 0.88 $ 0.90 Performance Ratios Return on assets (ROA) 1.17 % 1.13 % 1.37 % 1.21 % 1.33 % 1.39 % Return on eq
Slide 26: Quarterly Highlights: HomeTrust vs. Top Exchange Traded Banks
26 Quarterly Highlights: HomeTrust vs. Top 200 Exchange Traded Banks As of or for the quarter ended 9/30/2024 Nationwide Mean HomeTrust +/- Variance Tangible Common Equity / Tangible Assets 8.8% 10.9% 2.1% AOCI / Tangible Common Equity -9.1% 0.0% 9.1% Net Interest Margin 3.28% 4.06% 0.78% Yield on L
Slide 27: Quarterly Highlights: Net Interest Margin
27 Quarterly Highlights: Net Interest Margin 4.10% 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% 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 NIM Reported NIM Core* * Core net intere
Slide 28: Appendix – Non-GAAP Reconciliation: Efficiency Ratio
28 Set forth is a reconciliation to GAAP of our efficiency ratio: 9 Months Ended (Dollars in thousands) 9/30/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Noninterest expense 90,659$ 123,089$ 105,423$ 130,578$ 101,998$ Less: merger-related expense - (4,741) (724) - - Less: branch closure and rest
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) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Total stockholder's equity 540,004$ 523,628$ 513,173$ 499,893$ 484,411$ Less: goodwill, core dep
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) 9 Months Ended (Dollars in thousands) 9/30/2024 12/31/2023 12/3
Slide 31: Appendix – Non-GAAP Reconciliation: Quarterly Efficiency Ratio
31 Appendix – Non-GAAP Reconciliation (Continued) Set forth is a reconciliation to GAAP of our quarterly efficiency ratio: (Dollars in thousands) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Noniinterest expense 30,585$ 30,210$ 29,864$ 29,781$ 29,564$ 30,911$ Net interest income 42,0
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