Hometrust Bancshares, Inc. · NYSE:HTB

Hometrust Bancshares — FIG Partners Bank CEO Forum 2016

41 slides from Hometrust Bancshares's conference presentation, Sep 15, 2016

  1. Slide 1: FIG Partners Bank CEO Forum September 19-20, 2016

    FIG Partners Bank CEO Forum September 19-20, 2016

  2. 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 a

  3. Slide 3: HomeTrust Bancshares, Inc. Overview

    HomeTrust Bancshares, Inc. Overview Headquarters: Asheville, NC Exchange/Ticker: NASDAQ: HTBI Founded: 1926 Number of Employees: 448 Locations: 39 (NC,SC,VA,TN) Stock Price: $19.00 Total Assets: $2.7 billion Price to TBV: 99% Total Loans: $1.8 billion Market Cap: $341.9 million Total Deposits: $1.8

  4. Slide 4: Strategic Operating Committee

    4 Leader Role Age Yrs in Banking Yrs w/HTBI Dana Stonestreet Chairman, President & Chief Executive Officer 62 38 27 Tony VunCannon Executive Vice President & Chief Financial Officer 51 28 24 Hunter Westbrook Executive Vice President & Chief Banking Officer 53 29 5 Howard Sellinger Executive Vice Pre

  5. Slide 5: Accomplishments since conversion in 2012

    5  Converted to stock in July 2012 and raised $211.6 million  Added 6 larger growing markets in NC, SC, VA and East TN  3 Acquisitions  2 New Commercial Loan Production Offices From “lift-outs” of existing commercial lending teams  Purchased 10 Bank of America branches  Added 22 new locations

  6. Slide 6: Strong Footprint for Growth

    6 Strong Footprint for Growth

  7. Slide 7: Market Demographics

    Market Demographics Markets Population Asheville, NC/MSA 442,531 5 other non-metro markets 448,320 6 Original NC Markets at June 30, 2012 890,851 New Markets Since Conversion July 2014 Charlotte, NC/Mecklenburg County 990,104 November 2014 Raleigh, NC/Wake County 978,065 July 2013 Greenville, SC/MSA

  8. Slide 8: HomeTrust Growth Markets

    HomeTrust Growth Markets Asheville, NC MSA  2016 unemployment at 3.7% down from 4.6% in 2015  No. 3 out of 18 for the World’s Best Cities for Millennials, Matadornetwork.com, May 2016  No. 2 Best Startup City in America, Popular Mechanics, January 2015  No. 10 in Best Cities in the US and Canada

  9. Slide 9: Transitioning to a High Performing Community Bank

    Phase I: Created a Foundation For Growth  Lines of Business – Infrastructure and Talent p  Markets To Grow In p Phase II: Executing Our Strategic Plan with a Sense of Urgency  Sound and Profitable Organic Growth  Loans  Deposits  Lower our efficiency ratio  Noninterest income growth  Expense

  10. Slide 10: "De-Thrifting" the Balance Sheet

    “De-Thrifting” the Balance Sheet Organic Loan Growth in Nonmortgage Loans:  Commercial  Commercial real estate (CRE)  Commercial & industrial (C&I)  Commercial Construction  Indirect Auto Core Deposit Growth:  Commercial checking  Fee generation  Planned runoff of higher rate, single service

  11. Slide 11: Loan Growth Highlights

    11 Loan Growth:  Loan growth of 9% in FY 2016 ($148MM)  Organic growth of 10% (excluding 1-4 residential)  107% growth in indirect auto loans ($56MM)  9% growth in commercial loans ($56MM - CRE, C&I, Commercial Construction)  $72MM increase in unfunded construction loans to contribute to fiscal

  12. Slide 12: Loan Portfolio Composition

    12 $ 8 2 1 $ 7 8 4 $ 8 8 3 $ 9 8 6 $1 ,083 $ 4 1 1 $ 3 8 3 $ 6 1 5 $ 7 0 0 $ 7 5 0 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2012 2013 2014 2015 2016 Lo an B al an ce Fiscal Year Retail Consumer Commercial 5-Year CAGR of 8.27% 34% 25% 26.6% 5% 10% Loans: 6/30/16 1-4 Family ($6

  13. Slide 13: Commercial Loan Production by Type

    13 $16,008 $1,636 $2,993 $28,649 $3,971 $4,013 $35,773 $13,389 $18,960 $112,349 $47,955 $34 ,583 $13 7 ,660 $16 4 ,945 $22,933 $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 CRE Commercial Construction C&I Origi n at io n s Fiscal Year 2012 2013 2014 2015 2016 Dollar

  14. Slide 14: Commercial Production by Market – Legacy/New Markets

    14 22,571 38,151 56,969 53,551 69,902 12,264 141,336 255,636 69,538 194,887 325,538 2012 2013 2014 2015 2016 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Commercial Production Legacy New markets Total Commercial Production 83% 73% 82% 27% 17% Production by market above excludes m

  15. Slide 15: Consumer Loan Production

    Consumer Loan Production 15 $20 ,787 $15 ,839 $ 3 3 ,3 2 4 $9,598 $49 ,841 $53 ,010 $ 5 4,5 9 8 $87 ,844 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 HELOC-originated/Consumer Indirect auto Origi n at io n s Fiscal Year 2012 2013 2014 2015 2016 Dollars in thous

  16. Slide 16: Mortgage Loan Production

    Mortgage Loan Production 16 $16 1 ,379 $1 9 6,70 8 $33 ,668 $12 0 ,808 $22 7 ,117 $35 ,907 $ 6 8 ,2 4 2 $73 ,501 $49 ,455 $89 ,299 $74 ,353 $49 ,689 $81 ,577 $91 ,963 $42 ,493 $- $50,000 $100,000 $150,000 $200,000 $250,000 1-4 Family Portfolio 1-4 Brokered Construction Origi n at io n s Fiscal Year

  17. Slide 17: Indirect Auto

    Indirect Auto  Began in December 2013 after 12 months of due diligence  $108 million outstanding at June 30, 2016  Total net charge-offs of $296,000 or 27 bps compared to industry average of 56 bps(1)  59 strong dealerships all within our market area (Western NC and Upstate SC)  86% of indirect

  18. Slide 18: Deposit/Retail Highlights

    Deposit/Retail Highlights Deposit Growth:  5% core deposits growth in fiscal 2016 ($65MM)  6% growth in total checking accounts  15% growth in commercial checking accounts  24% planned runoff of CD’s  Reduced average cost of deposits to .28% in 4th quarter of fiscal 2016 Product/Process Improve

  19. Slide 19: Deposit Portfolio Mix

    19 2012 2013 2014 2015 2016 Time Deposits $629,958 $540,387 $634,154 $577,075 $442,649 Money Market/Savings $348,519 $357,876 $530,221 $703,622 $731,137 Checking Accounts $230,683 $256,486 $418,671 $591,429 $628,910 Core Deposits % (excludes time deposits) 47.90% 53.20% 59.94% 69.18% 75.45% 0% 10% 2

  20. Slide 20: Deposit Composition

    20 52.1% 46.8% 40.1% 30.8% 24.6% 28.8% 31.0% 33.5% 37.6% 40.6% 19.1% 22.2% 26.4% 31.6% 34.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2012 2013 2014 2015 2016 Time Deposits Money Market/Savings Checking Accounts $442,649 $731,137 $628,910 Time Deposits Money Market/Savings Checking Accounts Dolla

  21. Slide 21: Bank of America Branch Purchase Impact

    Bank of America Branch Purchase Impact  November 2014 – Acquired $236 MM of low cost Core Deposits  Younger Customer Demographics  Growth in deposit accounts of 60%  Debit card growth of 170%  Internet banking growth of 110%  5 Branch locations in Roanoke, VA to complement new Commercial LPO 

  22. Slide 22: Household Mix Shifting Toward Younger Segments

    • HomeTrust Bank’s acquisitions have shifted the consumer customer mix, with significant increases in Gen X and Gen Y (Millennials) households. • Baby Boomers continue to comprise the largest segment of consumer households at the Bank – 36.3%. • Younger consumers use mobile/online channels more ofte

  23. Slide 23: Enhanced Treasury Management

    Enhanced Treasury Management 23 Goal - Increase Noninterest Income  Increased deposit product pricing January 2016  Deposit fees increased 8% in 4th quarter fiscal 2016 compared to 3rd quarter  Added new/improved merchant services program  Increased fee income from provider  New purchase card p

  24. Slide 24: Creating Efficiencies/Expense Management

    Creating Efficiencies/Expense Management 24  October 2015 – consolidated six branches - $1.2MM in expected annual savings  December 2015 – Converted from a national charter bank to a state chartered bank - $350,000 in expected annual savings  May 2016 – Branch optimization staffing study - $375,0

  25. Slide 25: Asset Quality

    Nonperforming Assets / Total Assets Net Charge-Offs & NCO / Avg. Loans $34,373 $30,640 2.34% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2011 2012 2013 2014 2015 2016 Net Charge-Offs NCO/Avg. Loans 0.00% 1.00% 2.00% 3.00% 4.00% - 10,000 20,000 3

  26. Slide 26: Current FHLB Leveraging Strategy

     Borrowed $409 million (1) of short-term advances from the FHLB  Borrowings increased FHLB stock requirements by $20 million to take advantage of high dividend rate (4.87% for 3rd quarter 2016)  Invested remaining $389 million in short-term interest earning deposits (CD’s in other banks, commerci

  27. Slide 27: Investment Portfolio Composition

    Investment Portfolio Composition Investments: 6/30/16 ($264 MM) 22% 27% 4% 2% 45% US Gov't Agency ($77 MM) MBS-Gov't Agcy/GSE ($96 MM) Munis ($16 MM) Corporate Bonds ($8 MM) FDIC Insured CDs in Other Banks($161 MM) Yield: 1.61% Avg Repricing Term: 2.05 years Investments exclude $387MM in short-term

  28. Slide 28: Stock Buy Backs

    (Dollars in thousands, except per share amounts) Source: Company documents previously filed with the SEC Percent Purchased Shares Total Cost Avg Cost / Share 1st Buy Back (completed 4/29/13) 4% 846,400 13,299$ 15.71$ 2nd Buy Back (completed 12/2/13) 5% 1,041,245 17,055$ 16.38$ 3rd Buy Back (complete

  29. Slide 29: Merger and Acquisition Strategy

    Merger and Acquisition Strategy  Geographic footprint – within or adjacent to our current market footprint  Attractive, growing market  Asset size – Target of $300 million to $800 million  Strong core deposit base  Earnings accretion of 10% or more  Minimum dilution to current tangible book va

  30. Slide 30: Quarter Ended June 30, 2016 Highlights

    Quarter Ended June 30, 2016 Highlights (Dollars in thousands, except per share amounts) As Reported 06/30/2016 06/30/2015 Amount Percent Net income 3,302$ 2,558$ 744$ 29% EPS 0.19$ 0.14$ 0.05$ 36% ROA 0.48% 0.37% 0.11% 30% Net Interest Margin (tax equivalent) 3.43% 3.39% 0.04% 1% Organic Loan Growth

  31. Slide 31: Fiscal Year Ended June 30, 2016 Highlights

    Fiscal Year Ended June 30, 2016 Highlights (Dollars in thousands, except per share amounts) As Reported 06/30/2016 06/30/2015 Amount Percent Net income 11,456$ 8,025$ 3,431$ 43% EPS 0.65$ 0.42$ 0.23$ 55% ROA 0.42% 0.32% 0.10% 31% Net Interest Margin (tax equivalent) 3.37% 3.64% (0.27%) (7%) Organic

  32. Slide 32: Balance Sheet Highlights

    (Dollars in thousands, except per share amounts) 06/30/2016 06/30/2015 Amount Percent Total assets 2,717,677$ 2,783,114$ (65,437)$ (2%) Total loans 1,832,831 1,685,707 147,124 9% Core deposits 1,360,047 1,295,051 64,996 5% Total deposits 1,802,696 1,872,126 (69,430) (4%) Nonperforming loans/ Total l

  33. Slide 33: Total Shareholder Return

    100.0 110.0 120.0 130.0 140.0 150.0 160.0 170.0 180.0 07/11/12 12/31/12 06/30/13 12/31/13 06/30/14 12/31/14 06/30/15 12/31/2015 06/30/2016 Total Return Performance HomeTrust Bancshares, Inc. NASDAQ Bank NASDAQ Composite Total Shareholder Return 33

  34. Slide 34: Liquidity and Capital to Growth

    34  Well-capitalized balance sheet allows for a variety of strategic alternatives, including:  Share repurchases  Repurchased 26% since conversion  Continuing to repurchase at below book value  Dividends  None to date with share price at or below book value  Strong capital ratios at June 30,

  35. Slide 35: Transitioning to a High Performing Community Bank

    Phase I: Created a Foundation For Growth Phase II: Executing Our Strategic Plan with a Sense of Urgency Phase III: Consistently Improving Performance 35 Transitioning to a High Performing Community Bank

  36. Slide 36: Investor Contacts

    Investor Contacts Dana Stonestreet Chairman, President & CEO dana.stonestreet@hometrustbanking.com Hunter Westbrook EVP/Chief Banking Officer hunter.westbrook@hometrustbanking.com Tony VunCannon EVP/Chief Financial Officer/Treasurer tony.vuncannon@hometrustbanking.com 10 Woodfin Street Asheville, NC

  37. Slide 37: Non-GAAP Disclosure Appendix

    37 Non-GAAP Disclosure Appendix

  38. Slide 38: Non-GAAP Disclosure

    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: tangible book value per share, net income excluding merger-related expenses, nonrecurrin

  39. Slide 39: Non-GAAP Reconciliation: Tangible Book Value

    39 Non-GAAP Disclosure Reconciliation Set forth below is a reconciliation to GAAP of tangible book value and tangible book value per share:

  40. Slide 40: Non-GAAP Reconciliation: Net Interest Margin

    40 Non-GAAP Disclosure Reconciliation Set forth below is a reconciliation to GAAP net interest income and net interest margin as adjusted to exclude additional FHLB borrowings and proceeds from such borrowings:

  41. Slide 41: Non-GAAP Reconciliation: Net Income, ROA, EPS

    41 Non-GAAP Disclosure Reconciliation Set forth below is a reconciliation to GAAP net income, ROA, and EPS as adjusted to exclude merger-related expenses, nonrecurring state tax expense, and impairment charge for branch consolidation:

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