Hometrust Bancshares, Inc. · NYSE:HTB
Hometrust Bancshares — FIG Partners' 11th Annual Bank CEO Forum 2015
27 slides from Hometrust Bancshares's conference presentation, Sep 28, 2015
Slide 1: FIG Partners' 11th Annual Bank CEO Forum
0 FIG Partners’ 11th Annual September 28 - 29, 2015 Bank CEO Forum
Slide 2: Forward-Looking Statements
1 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: HomeTrust Bancshares, Inc. Overview
2 HomeTrust Bancshares, Inc. Overview Headquarters: Asheville, NC Exchange/Ticker: NASDAQ: HTBI Founded: 1926 Number of Employees: 475 Locations: 45 (NC,SC,VA,TN) (1) Stock Price: $18.44(3) Total Assets: $2.8 billion Price to TBV: 102% Total Loans: $1.7 billion Market Cap: $352 million(3) Total Depo
Slide 4: Strategic Operating Committee
3 Strategic Operating Committee Leader Role Age Yrs in Banking Yrs w/HTBI Dana Stonestreet Chairman, President & Chief Executive Officer 61 37 26 Tony VunCannon Executive Vice President & Chief Financial Officer 50 27 23 Hunter Westbrook Executive Vice President & Chief Banking Officer 52 28 4 Howar
Slide 5: Foundation For Growth
4 Foundation For Growth • Converted to stock in July 2012 and raised $211.6 million • Added 5 larger growing markets in NC, SC, VA and East TN • Added 25 new locations, $1 billion in assets, and 200 new team members • Converted to national bank charter in August 2014 • United 7 names to one brand –
Slide 6: Focus Today – Execute with a Sense of Urgency
5 Focus Today – Execute with a Sense of Urgency • Sound and Profitable Organic Growth • Loan portfolio - Goal of 8-10% annualized growth • Core deposits (Checking accounts increased $173.8 million or 42% in the past 12 months) • Non-interest income (Up $3.8 million or 43% in the past 12 months) • Re
Slide 7: New Markets to Drive Organic Growth
6 New Markets to Drive Organic Growth Date Closed Description Assets (millions) Locations Purchase Price (million) Price to TBV Cash / Stock July 31, 2013 BankGreenville $101 2 - Greenville, SC $8.7 92% Cash May 31,2014 Jefferson Bancshares, Inc. $489 12 - East Tennessee $51.2 99% Cash- 50% Stock- 5
Slide 8: Growth Since Conversion
7 Growth Since Conversion Mutual/Stock Conversion Actual 09/30/2012 06/30/2015 $ % Total Assets $ 1,603 $ 2,783 $ 1,180 74% Total Loan Portfolio $ 1,203 $ 1,686 $ 483 40% 1-4 Family 611 651 40 7% HELOC’s & Other Consumer 195 335 140 72% Commercial Real Estate 232 442 210 91% Commercial Constr. & Dev
Slide 9: Loan Portfolio Composition
8 Loan Portfolio Composition Loans: At Time of Conversion (1) Loans: 6/30/15 With Recent Acquisitions (1) Financial data as of 9/30/12 51% 16% 19% 3% 11% 1-4 Family ($611MM) HELOCs & Other Consumer ($195MM) Commercial Real Estate ($232MM) Commercial Construction & Development ($38MM) Other Commercia
Slide 10: Deposit Portfolio Composition
9 Deposit Portfolio Composition Deposits: At Time of Conversion (1) Deposits: 6/30/15 With Recent Acquisitions (1) Financial data as of 9/30/12 31% 37% 32% Time Deposits ($577MM) MMDA / Savings ($704MM) Transaction Accounts ($591MM) Core Deposits Growth 36% 50% 29% 21% Time Deposits ($584MM) MMDA /
Slide 11: Expanded Footprint For Growth
10 Expanded Footprint For Growth
Slide 12: Market Demographics
11 Market Demographics Markets Population 6 Original NC Markets at Conversion 890,851 New Markets Since Conversion Charlotte, NC/Mecklenburg County 990,104 Raleigh, NC/Wake County 978,065 Greenville, SC/MSA 855,961 Knoxville, TN/MSA 855,322 Tri-Cities, TN/MSA 511,491 Roanoke, VA/MSA 313,033 Other 23
Slide 13: HomeTrust Growth Markets
12 HomeTrust Growth Markets Asheville, NC MSA • 2015 unemployment at 4.6% down from 4.9% in 2014 • No. 12 on Top 100 Best Places to Live 2015, Livability.com, September 2014 • No. 34 for Best Places for Business & Careers, Forbes, November 2014 Greenville, SC MSA • 2015 unemployment at 6.1% up from
Slide 14: Bank of America Branch Purchase Impact
13 Bank of America Branch Purchase Impact • Younger Customer Demographics • Growth in deposit accounts of 60% • Growth in low cost core deposits • Debit card growth of 170% • Internet banking growth of 110% • 5 Branch locations in Roanoke, VA to complement new Commercial LPO
Slide 15: Household Mix Shifting Toward Younger Segments
14 • HomeTrust Bank’s recent 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 – 33.86%. • Younger consumers use mobile/online channel
Slide 16: Talent Added For Growth
15 Talent Added For Growth Roanoke Loan Production Team Market President Jul 2014 Commercial Relationship Manager Jul 2014 Sr. Commercial Credit Manager Jul 2014 Treasury Management Sales Officer Jul 2014 Raleigh Loan Production Team Market President Nov 2014 Customer Relationship Managers (3) Nov 2
Slide 17: Loan Production
16 Loan Production Source: July 27, 2015 earnings release and other internal Company documents 89,299 74,353 46,728 49,689 53,010 3,113 68,242 73,501 30,030 49,455 9,598 3,294 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 1-4 Family 1-4 Brokered HELOC Const&land dev Indire
Slide 18: Improving Asset Quality
17 Improving Asset Quality Net Charge-Offs / Average Loans Nonperforming Assets / Total Assets Allowance for Loan Losses / Total Loans Source: SNL Financial; company documents previously filed with the SEC, and the July 27, 2015 earnings release. 1.07% 1.14% 2.04% 3.23% 3.77% 2.85% 2.75% 2.05% 1.58%
Slide 19: Current FHLB Leveraging Strategy
18 Current FHLB Leveraging Strategy • Borrowed $475 million (1) of short-term advances from the FHLB • Borrowings increased FHLB stock requirements by $20 million to take advantage of high dividend rate (4.26% for 1st quarter 2015) • Invested remaining $455 million in short-term interest earning dep
Slide 20: Investment Portfolio Composition
19 Investment Portfolio Composition Investments: 6/30/15 With Recent Acquisitions ($469 MM) 25% 26% [PERCENTAGE] 1% 45% US Gov't Agency ($116 MM) MBS-Gov't Agcy/GSE ($122 MM) Munis ($16 MM) Corporate Bonds ($4 MM) FDIC Insured CDs in Other Banks($211 MM) 3% Yield: 1.39% Avg Repricing Term: 1.94 year
Slide 21: Earnings Release – 6/30/15 (QTD)
20 Earnings Release – 6/30/15 (QTD) (Dollars in thousands, except per share amounts) Source: July 27, 2015 earnings release. As Reported 06/30/2015 06/30/2014 Amount Percent Net income 2,558$ 1,533$ 1,025$ 67% ROA 0.37% 0.35% 0.02% 6% EPS 0.14$ 0.08$ 0.06$ 75% Net Interest Margin (tax equivalent) 3.
Slide 22: Earnings Release – 6/30/15 (YTD)
21 Earnings Release – 6/30/15 (YTD) (Dollars in thousands, except per share amounts) Source: July 27, 2015 earnings release. As Reported 06/30/2015 06/30/2014 Amount Percent Net income 8,025$ 10,342$ (2,317)$ (22%) ROA 0.32% 0.62% (0.30%) (48%) EPS 0.42$ 0.54$ (0.12)$ (22%) Net Interest Margin (tax
Slide 23: Balance Sheet Highlights
22 Balance Sheet Highlights (Dollars in thousands, except per share amounts) Source: July 27, 2015 earnings release. 06/30/2015 06/30/2014 Amount Percent Total assets 2,783,114$ 2,074,454$ 708,660$ 34% Total loans 1,685,707 1,496,528 189,179 13% Core deposits 1,295,051 948,892 346,159 36% Total depo
Slide 24: Stock Buy Backs
23 Stock Buy Backs (Dollars in thousands, except per share amounts) Source: Company documents previously filed with the SEC and the July 27, 2015 earnings release. 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
Slide 25: Liquidity and Capital To Grow
24 Liquidity and Capital To Grow Source: Bank Call Reports (1) New capital ratio effective January 1, 2015, not applicable for earlier periods. • Well-capitalized balance sheet allows for a variety of strategic alternatives, including: • Share repurchases • Repurchased 19% since conversion • Continu
Slide 26: Transition To High Performing Community Bank
25 Transition To High Performing Community Bank Phase I: Create Foundation For Growth • Lines of Business – Infrastructure and Talent p • Markets To Grow In p Phase II: Execute with a Sense of Urgency • Sound and Profitable Organic Growth • Loan portfolio - Goal of 8-10% annualized growth • Core dep
Slide 27: Investor Contacts
26 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,
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