UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 15, 2017
HOMETRUST BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Maryland | 001-35593 | 45-5055422 | ||
(State or other jurisdiction of incorporation) | (Commission File No.) | (IRS Employer Identification Number) | ||
10 Woodfin Street, Asheville, North Carolina | 28801 | |||
(Address of principal executive offices) | (Zip Code) | |||
Registrant's telephone number, including area code: (828) 259-3939 |
Not Applicable | ||||
(Former name or former address, if changed since last report) | ||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company | [X] |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | [ ] |
Item 7.01 Regulation FD Disclosure
HomeTrust Bancshares, Inc. is furnishing this Current Report on Form 8-K in connection with a presentation being made by management at Sandler O'Neill's East Coast Financial Services Conference on November 15-17, 2017 in Naples, Florida. Attached hereto as Exhibit 99.1 and incorporated herein by reference is the text of that presentation.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 | Sandler O'Neill's East Coast Financial Services Presentation Materials | |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HOMETRUST BANCSHARES, INC. | |||
Date: November 15, 2017 | By: | /s/ Tony J. VunCannon | |
Tony J. VunCannon | |||
Executive Vice President, Chief Financial Officer, and Treasurer | |||
3
EXHIBIT INDEX
Exhibit No. | Description |
99.1 | |
Positioned for
growth
Sandler O’Neill’s
East Coast Financial
Services Conference
November 15-17, 2017
Positioned for
growth 2
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 as “will,” “would,” “should,”
“could,” or “may.” Forward-looking statements are not historical facts but instead represent
management’s current expectations and forecasts regarding future events many of which are
inherently uncertain and outside of our control. Actual results may differ, possibly materially, from
those currently expected or projected in these forward-looking statements. Factors that could cause
our actual results to differ materially from those described in the forward-looking statements, include
expected cost savings, synergies and other financial benefits from acquisitions might not be realized
within the expected time frames or at all, and costs or difficulties relating to integration matters might
be greater than expected; increased competitive pressures; changes in the interest rate environment;
changes in general economic conditions and conditions within the securities markets; legislative and
regulatory changes; and other factors described in HomeTrust’s latest annual Report on Form 10-K
and Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission-
which are available on our website at www.hometrustbanking.com and on the SEC’s website at
www.sec.gov. Any of the forward-looking statements that we make in this presentation or our SEC
filings are based upon management’s beliefs and assumptions at the time they are made and may
turn out to be wrong because of inaccurate assumptions we might make, because of the factors
illustrated above or because of other factors that we cannot foresee. We do not undertake and
specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence
of anticipated or unanticipated events or circumstances after the date of such statements. These risks
could cause our actual results for fiscal 2018 and beyond to differ materially from those expressed in
any forward-looking statements by, or on behalf of, us and could negatively affect our operating and
stock performance.
Positioned for
growth 3
HomeTrust Bancshares, Inc. Overview
Headquarters: Asheville, NC Exchange/Ticker: NASDAQ: HTBI
Founded: 1926
Number of
Employees:
489
Locations: 43 (NC, SC, VA, TN) Stock Price: $25.30
Total Assets: $3.2 billion Price to TBV: 128%
Total Loans: $2.4 billion Market Cap: $479.7 million
Total Deposits: $2.1 billion
Average Daily
Volume:
37,960
Outstanding Shares:
18,962,075 Shares Repurchased
(since Feb 19, 2013)
5,351,065
or approx. 26%
Financial data as of September 30, 2017
Market data as of November 13, 2017
Positioned for
growth 4
Strategic Operating Committee
Leader Role Age
Yrs in
Banking
Yrs
w/HTBI
Dana Stonestreet Chairman, President & Chief
Executive Officer
63 39 28
Tony VunCannon Executive Vice President & Chief
Financial Officer
52 29 25
Hunter
Westbrook
Executive Vice President & Chief
Banking Officer
54 30 5
Howard Sellinger Executive Vice President & Chief
Information Officer
64 42 42
Keith Houghton Executive Vice President & Chief
Credit Officer
55 30 3
Parrish Little Executive Vice President & Chief
Risk Officer
49 27 2
197 105
Positioned for
growth
Phase I: Created a Foundation For Growth
Lines of Business – Infrastructure and Talent
New markets for growth
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 management
Streamlining current processes
Repurchase shares opportunistically
Highly accretive in-market acquisitions
Phase III: Consistently improving performance
5
Transitioning to a High Performing Community Bank
Positioned for
growth
$318
$431
$585 $605 $609
$686 $711 $722
$748
$885 $926
$1,124
$1,348
$1,470
$1,641 $1,638
$1,720
$1,583
$2,074
$2,783
$2,718
$3,207
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
($000
)
Assets Loans Deposits
Tryon
Federal
Partnership
1996
Shelby
Savings
Partnership
1998
Home
Savings
Partnership
2005
Industrial
Federal
Partnership
2010
BankGreenville
Merger
2013
Cherryville
Federal
Partnership
2011
Mergers with
Jefferson
Federal, Bank of
Commerce and
Bank of America
Branches
2014
TriSummit
Merger
2017
2012 Stock
Conversion
6
Growth Since 1996
Positioned for
growth 7
Foundation for Growth and Performance
• Converted to stock in July 2012 and raised $211.6MM
• Added 7 larger growing markets in NC, SC, VA and East TN since conversion
• 4 whole bank acquisitions
• 3 new Commercial Loan Production Offices from “lift-outs” of existing commercial lending teams
• Purchased 8 Bank of America branches
• Added new metro markets with populations of more than 4.7 million to legacy markets of 900,000
• Added 23 new locations and $1.6 billion in assets
• Hired a Director of Mortgage Lending to expand this line of business in our new metro markets
• Added a Consumer Banking Executive to focus on improving the retail and consumer lines of business
• Hired 29 new Commercial Market Presidents / Commercial Relationship Managers to grow commercial
lending
• Added new lines of business and experienced leaders
• Indirect Auto Finance - grown portfolio to over $140 million
• Municipal Finance – portfolio of over $100 million
• Treasury Management
• SBA 7(a) Loan Program
• Equipment Finance
• Consolidated 10 branch offices
• Grown to the 2nd largest community bank headquartered in NC
Positioned for
growth 8
Strong Footprint for Growth
Positioned for
growth 9
Population Growth Through Addition of New Metro Markets
890,851 890,851 890,851 890,851 890,851
2,222,774 2,222,774 2,222,774
2,512,274 2,512,274
3,113,625
5,625,899
6,349,700
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2012 2013 2014 2015 2017
613% Increase in Market Population New Market:
- Greensboro/High Point MSA (723,801)
723,801
Original NC Markets:
- Asheville, NC/MSA (442,531)
- 5 Other non-metro markets (448,320)
New Markets:
- Greenville, SC/MSA (855,961)
- Knoxville, TN/MSA (855,322)
- Tri-Cities, TN/MSA (511,491)
New Markets:
- Charlotte, NC/Mecklenburg County (990,104)
- Roanoke, VA/MSA (313,033)
- Raleigh, NC/Wake County (978,065)
- 3 Other non-metro markets (231,072)
Source: U.S. Bureau of Labor Statistics; population amounts as of the date of each acquisition
Positioned for
growth 10
HomeTrust Growth Markets
Asheville, NC MSA
2017 unemployment at 3.5% down from 3.7% in 2016
No. 1 Best in the U.S. Destination for 2017, Lonely Planet, January 2017
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, Travel & Leisure, July 2015
No. 34 for Best Places for Business & Careers, Forbes, November 2014
Charlotte, NC MSA
2017 unemployment at 4.0% down from 4.4% in 2016
No. 13 Fastest Growing Cities, Forbes, March 2016
No. 7 Best City to Start a Business, WalletHub, May 2016
No. 11 Highest Startup Growth, Business Insider, June 2016
No. 2 Best States for Businesses and Careers, Forbes, October 2015
Knoxville, Kingsport, Bristol, Johnson City, TN MSA Areas
Knoxville: 2017 unemployment at 2.7% down from 3.9% in 2016
Kingsport/Bristol: 2017 unemployment at 3.6% down from 4.6% in 2016
Johnson City: 2017 unemployment at 3.2% down from 4.6% in 2016
Tennessee: named the Fourth Best State in the Country for Business, Chief
Executive Magazine, 2016 Best & Worst States for Business list
Knoxville in top five for 10 Best Cities for Small Businesses, CNN Money,
August 2015
Tennessee: named 2014 State of the Year for economic development,
Business Facilities, 2014
Roanoke, VA MSA
2017 unemployment at 3.8% up from 3.7% in 2016
Virginia ranked No. 3 for Business Friendliness, CNBC 2015
Virginia ranked No. 4 for Best State for Doing Business, Forbes, 2014
Source: U.S. Bureau of Labor Statistics, Chamber of Commerce of named cities, Tennessee Department of Economic & Community Development, Virginia Economic Development
Partnership; unemployment rates as of June for each year
Raleigh, NC MSA
2017 unemployment at 3.8% down from 4.1% in 2016
No. 14 Fastest Growing Metro in U.S., U.S. Census Bureau, March 2017
No. 10 Boomtowns of 2016, SmartAssets, January 2017
#3 Best Cities For Young Professionals, Forbes, March 2016
#3 Best Cities for Young Families, Value Penguin, February 2016
Greenville, SC MSA
2017 unemployment at 3.3% down from 4.1% in 2016
No. 9 Top 10 Small Cities Where Business is Thriving, Entrepreneur, 2015
No. 6 list of America's Engineering Capitals, Forbes, 2014
No. 7 Best State for Business, Chief Executive Magazine, 2014
Best Cities for Jobs Fall 2013, Manpower Survey as reported in Forbes
Magazine
Positioned for
growth 11
New Greensboro Commercial Loan Production Office
• Announced July 31, 2017
• Strong new metro market
• Greensboro-High Point MSA with population of 723,801
• 3rd largest MSA in North Carolina behind Charlotte and Raleigh
• 7th metro market added since our stock conversion
• Natural geographic expansion – existing offices in adjacent counties
• “Lift-out” of experienced Greensboro market commercial lending team
• Robert Gray –Market President – 20 years of experience
• Chad Davis – Commercial Relationship Manager – 11 years of experience
• Previous experience includes Centura Bank, SunTrust Bank, and NewBridge Bank
• Focused on C&I lending
• Currently only 10% of our total loan portfolio
• Capitalizing on high degree of disruption in the Greensboro market due
to recent mergers
• Premier Commercial Bank → NewBridge Bank→ Yadkin → FNB
• High Point Bank → BNC Bank → Pinnacle Bank
• Carolina Bank → First Bank
Positioned for
growth 12
Building a High-Performing Commercial Lending Team
Changes in the past 5 years
Commercial lenders in legacy markets – June 2012 5
Attrition in legacy markets (4)
Hired/replaced in legacy markets 4
Acquired through bank acquisitions 21
Attrition after bank acquisitions (18)
Hired/replaced in acquired markets 14
“Lift-outs” of commercial teams in 3 new metro markets 8
_____
Current Market Presidents/Commercial Relationship Managers 30
Leaders of new lending lines of business 3
____
High Performing Commercial Lending Team – November 2017 33
(29 hired in the
past 5 years)
(32 hired in the
past 5 years)
Positioned for
growth 13
Adding Talent for Growth
Commercial and Line of Business Leaders
Positioned for
growth 14
5-Year Growth Since Conversion
Conversion Ended
09/30/2012 09/30/2017 $ %
Total Assets $1,603 $3,250 $1,647 103%
Total Loan Portfolio $1,203 $2,395 $1,192 99%
Total Deposit Portfolio $1,160 $2,100 $940 81%
Checking Accounts 239 769 530 222%
Money Market/Savings 337 873 536 159%
Total Core Deposits 576 1,642 1,066 185%
Time Deposits 584 458 (126) -22%
Locations 20 43 23 115%
Conversion
Positioned for
growth 15
Continuing To “De-Thrift” the Balance Sheet
Organic Loan Growth in Nonmortgage Loans:
Commercial
Commercial real estate (CRE)
Commercial & industrial (C&I)
Commercial Construction
Indirect Auto
SBA Lending
Equipment Finance
Core Deposit Growth:
Commercial checking
Fee generation
Planned runoff of higher rate, single service CD’s
Increasing Noninterest Income:
Mortgage banking income
Deposit fees
Treasury management
SBA Lending
Positioned for
growth 16
Loan Highlights
Loan Portfolio Growth:
Organic loan growth of 14% in FY 2017 vs. 4% in FY 2016 ($243MM vs $75MM)
30% growth in indirect auto loans ($32MM)
53% growth in commercial loans ($400MM* - CRE, C&I, Commercial Construction, Municipal
Leases)
88% of fiscal 2017 commercial production was from new metro markets
Recent Highlights/Enhancements:
Hired 13 new Commercial Market Presidents/Relationship Managers in last 12 months
Hired/replaced 29 Commercial Market Presidents/Relationship Managers in last 5 years
Announced new SBA 7(a) loan program
Announced new Equipment Finance line of business
Acquired United Financial – Municipal Finance line of business
Announced new Greensboro Commercial Loan Production Office with focus on C&I lending
Added 10 new mortgage loan officers in the last 12 months in 5 new metro markets
Increased total mortgage loan production by 41% ($305MM in FY 2017 vs $216MM in FY 2016)
* Includes $185 million from TriSummit Bank acquisition
Positioned for
growth 17
Loan Portfolio Composition
$
6
2
1
$
6
0
2
$
6
6
0
$
6
5
0
$
6
2
4
$
6
8
4
$200 $182
$223 $336
$459
$518 $411 $383
$615
$700
$750
$1
,150
$-
$500
$1,000
$1,500
$2,000
$2,500
2012 2013 2014 2015 2016 2017
Lo
an
B
ala
n
ce
Fiscal Year
1-4 Family HELOCs & Other Consumer Commercial
5-Year CAGR of 13.81%
29%
22%
31.0%
8%
10%
Loans: 6/30/17
1-4 Family ($684MM)
HELOCs & Other Consumer ($518MM)
Commercial RE ($730MM)
Commercial Construction ($198MM)
Other Commercial ($222MM)
Commercial 48%
Dollars in millions
51%
16%
19%
3%
11%
Loans: 6/30/12
1-4 Family ($621MM)
HELOCs & Other Consumer ($200MM)
Commercial RE ($239MM)
Commercial Construction ($42MM)
Other Commercial ($130MM)
Commercial 33%
Increased commercial loan
portfolio by $739 million or
180% since 2012
Positioned for
growth 18
Commercial Loan Production by Type
Excludes municipal leases.
Dollars in thousands
$4,013
$3,971
$28,649
$18,960
$13,389
$35,773
$34,583
$47
,955
$11
2
,349
$22,933
$16
4
,945
$13
7
,660
$92
,591
$19
2
,803
$
2
3
8
,8
7
0
$-
$50,000
$100,000
$150,000
$200,000
$250,000
C&I Commercial Construction CRE
Origi
n
at
io
n
s
Fiscal Year
2013 2014 2015 2016 2017
Positioned for
growth 19
Commercial Real Estate Composition
12%
29%
11%
12%
7%
10%
5%
3%
11%
As of 6/30/17
Multifamily Owner Occupied Office
Retail Hospitality Shopping Centers
Industrial Healthcare Other
Positioned for
growth 20
Commercial Production by Market
22,571 38,151
56,969 53,551 69,902 62,413
12,264
141,336
255,636
461,851
5 5
8
15
19
30
-
5
10
15
20
25
30
2012 2013 2014 2015 2016 2017
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
$550,000
Legacy New markets CRM/Lenders
88%
12%
69,538
Production by market above excludes municipal leases.
Dollars in thousands
194,887
524,264
325,538
Legacy/New Markets
Positioned for
growth 21
Consumer Loan Production
Dollars in thousands
$15
,839
$33
,324
$9,598 $49
,841
$53
,010
$54
,598
$87
,844
$49
,794
$84
,707
$-
$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
2013 2014 2015 2016 2017
$0
Positioned for
growth 22
Mortgage Loan Production
$35
,907
$22
7
,117
$12
0
,808
$
4
9
,4
5
5
$
7
3
,5
0
1
$68
,242
$49
,689
$74
,353
$89
,299
$42
,493
$91
,963
$81
,577
$71
,674
$13
4
,258
$99
,220
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Construction 1-4 Family Originated for Sale 1-4 Family Portfolio
Origi
n
at
io
n
s
Fiscal Year
2013 2014 2015 2016 2017
Dollars in thousands
Positioned for
growth 23
Deposit/Retail Highlights
Deposit Growth:
17% core deposit* growth in fiscal 2017 ($226MM)
24% growth in total checking accounts
41% growth in commercial checking accounts
Core deposits* now make up 77% of total deposits
Average cost of total deposits remained at .28% for fiscal 2017
Customer/Household Trends in fiscal 2017:
8% growth in total retail households
16% growth in total retail loan households
7% increase in number of deposit households
Consistently favorable trends in the number of engaged checking and ‘sweet spot’ relationships –
those households with checking, savings, and credit accounts (all 3)
Product/Process Improvements:
Introduced new Consumer Lending and HELOC origination platform (MeridianLink) in Q1 fiscal 2018
Enhanced online and mobile banking, including improvements to online account opening
Consolidated three branches concurrently with TriSummit Bank data conversion in March 2017
Continually refining staffing models to achieve/maintain optimum FT/PT balance
Construction underway for de novo branch in Cary NC, opening slated for Spring 2018
*Core deposits exclude all time deposits/certificates of deposit.
Positioned for
growth
Deposit Portfolio Mix
2012 2013 2014 2015 2016 2017
Time Deposits $629,958 $540,387 $634,154 $577,075 $442,649 $462,146
Money Market/Savings $348,519 $357,876 $530,221 $703,622 $731,137 $806,756
Checking Accounts $230,683 $256,486 $418,671 $591,429 $628,910 $779,549
Core Deposits %
(excludes time deposits)
47.90% 53.20% 59.94% 69.18% 75.45% 77.44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000 Total
Deposits:
$1,583,046
Total
Deposits:
$1,872,126
Total
Deposits:
$1,802,696
Total
Deposits:
$1,209,160
Total
Deposits:
$1,154,749
Total
Deposits:
$2,048,451
24
Dollars in
thousands
2012 MMDA/Saving excludes $264.2MM related to investor funds used to purchase Company stock for the July 11, 2012 IPO.
Positioned for
growth
52.1%
46.8%
40.1%
30.8%
24.6% 22.6%
28.8%
31.0%
33.5%
37.6%
40.6%
39.4%
19.1%
22.2%
26.4%
31.6%
34.9%
38.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015 2016 2017
Time Deposits Money Market/Savings Checking Accounts
$462,146
$806,756
$779,549
Time Deposits
Money Market/Savings
Checking Accounts
Dollars in thousands
Deposit CompositionDeposit Migration
0.85%
0.63%
0.46%
0.30% 0.28% 0.28%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
0.90%
2012 2013 2014 2015 2016 2017
Cost of Funds
Deposit balances as of fiscal year end; Cost of funds are averages for the fiscal year; 2012 MMDA/Saving excludes
$264.2MM related to investor funds used to purchase Company stock for the July 11, 2012 IPO.
25
Deposit Composition
Positioned for
growth 26
Growing Noninterest Income
New SBA Line of Business
Gain from loan sales
Third party servicer to keep overhead low
Mortgage Banking
Expanded into 5 of our new metro markets
Added 10 new mortgage loan officers in the last 12 months
Increasing rates to enhance gain on loan sales
Moving to a “mortgage banking” model and process and away from the
“traditional thrift” model
Treasury Management
Focus on increasing fees and appropriate pricing
Additional debit card revenue from purchase card program
Increased fees from new merchant services program
Increased discipline and monitoring of fee waivers and refunds – reduced
64% in fiscal 2017
Positioned for
growth 27
Creating Efficiencies/Expense Management
Consolidated 10 branch offices
Closed 6 overlapping rural offices
Consolidated 4 offices related to acquisitions
Branch optimization staffing study reduced expense $375,000
annually
Changed health care insurance providers to avoid $700,000 increase
Reduced REO-related expense by $385,000, or 21% in fiscal 2017
Achieved 50% cost savings in TriSummit acquisition
Positioned for
growth
Nonperforming Assets / Total Assets
Net Charge-Offs & NCO / Avg. Loans
$30,640
$4
,127
0.34%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2012 2013 2014 2015 2016 2017
Net Charge-Offs NCO/Avg. Loans
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
2012 2013 2014 2015 2016 2017
ALL ALL/Tot. Loans
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
2012 2013 2014 2015 2016 2017
Dollars in thousands
Provision For / (Recovery Of) Loan Losses
$15,600
$1,100
$(6,300)
$150
$- $-
(10,000)
(5,000)
-
5,000
10,000
15,000
20,000
2012 2013 2014 2015 2016 2017
Allowance for Loan Losses & ALL / Total Loans
28
Asset Quality
All data is as of or for the year ended June 30
Positioned for
growth 29
Current FHLB Leveraging Strategy
Borrowed $318 million (1) of additional short-term advances from the FHLB
Average borrowings for the year totaled $578 million
Borrowings increased FHLB stock requirements to $32 million to take advantage of
high dividend rate (4.77% annualized for 4th quarter 2017)
Used funds to invest in short-term interest earning deposits (CD’s in other banks,
commercial paper, and deposits with the Federal Reserve Bank)
Increased net interest income by $1.8 million for the year
Decreased net interest margin 39 basis points – excluding this leveraging strategy,
net interest margin would be 3.88% for the year ended June 30, 2017
Will continue to impact net interest margin and ROA in fiscal 2018 while
contributing to earnings and EPS
Plan to continue reducing leveraging strategy over time
(1) Average additional borrowings for FHLB leveraging strategy for the year ended June 30, 2017.
Average additional borrowings for FHLB leveraging strategy for the quarter ended September 30, 2017 was $245 million.
Positioned for
growth 30
Investment Portfolio Composition
Investments: 6/30/17
($281 MM)
24%
33%
12%
2%29%
US Gov't Agency ($66 MM)
MBS-Gov't Agcy/GSE ($93 MM)
Munis ($34 MM)
Corporate Bonds ($6 MM)
FDIC Insured CDs in Other Banks($82 MM)
Yield: 1.76%
Avg Repricing Term: 2.13 years
Investments exclude $245MM in short-
term interest-earning deposits related
to our leveraging strategy
Positioned for
growth 31
Continuing to Leverage Capital
• Organic loan growth
• Opportunistic acquisitions at reasonable prices
• Share repurchases – Repurchased 26% since 2012 conversion
• Dividends - None to date with low price to tangible book value
13.06%
11.13%
13.06%
13.89%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Common Equity Tier 1 (1) Tier 1 Leverage Ratio Tier 1 Risk-Based Ratio Total Risk-Based Ratio
2012 2013 2014 2015 2016 2017
6.5% = well
Capitalized
5% = well
Capitalized
8% = well
Capitalized
10% = well
Capitalized
Source: Federal Reserve Reports as of each fiscal year ended June 30
(1) Common Equity Tier 1 Ratio was effective January 1, 2015, not applicable for earlier periods.
Positioned for
growth 32
Opportunistic Acquisition Strategy
Geographic footprint – within or adjacent to our current market footprint
Attractive, growing market
Asset size – Target of $300 million to $800 million
Strong core deposit base
Earnings accretion of 10% or more
Minimum dilution to current tangible book value
Earnback period of 4 years or less
Significant but realistic cost savings
Reasonable price with a currency mix of cash and stock
No major credit issues
Cultural fit
Positioned for
growth
(Dollars in thousands, except per share amounts)
Source: Company documents previously filed with the SEC
33
Stock Buy Backs
Percent
Purchased of
Outstanding
Shares
Number of
Shares Total Cost
Avg Cost /
Share
1st Buy Back (completed 4/29/13) 4% 846,400 13,299$ 15.71$
2nd Buy Back (completed 12/2/13) 5% 1,041,245 17,055$ 16.38$
3rd Buy Back (completed 11/18/14) 5% 989,183 15,589$ 15.76$
4th Buy Back (completed 8/5/15) 5% 1,023,266 16,298$ 15.93$
5th Buy Back (completed on 1/20/16) 5% 971,271 18,089$ 18.62$
6th Buy Back (approved on 12/15/15) 5% 479,700 8,634$ 18.00$
Total repurchased through June 30, 2017 26% 5,351,065 88,964$ 16.63$
Remaining Shares to be purchased through 6th Buy Back 443,155
Total Shares Repurchased / Authorized 5,794,220
Positioned for
growth 34
Quarter Ended September 30, 2017 Highlights
(Dollars in thousands, except per share amounts)
As Reported 09/30/2017 09/30/2016 Amount Percent
Net income 5,567$ 3,824$ 1,743$ 46%
EPS - diluted 0.30$ 0.22$ 0.08$ 36%
ROA 0.70% 0.55% 0.15% 27%
Net interest margin (tax equivalent) 3.44% 3.44% 0.00% 0%
Noninterest income 4,577$ 4,241$ 336$ 8%
Core Earnings (1)
Net income 5,595$ 4,294$ 1,301$ 30%
EPS - diluted 0.30$ 0.25$ 0.05$ 20%
ROA 0.70% 0.62% 0.08% 13%
Organic Loan Growth
$ Growth 43,175$ 24,020$ 19,155$ 80%
% Growth (annualized) 7.90% 5.70% 2.20% 39%
Loan originations:
Commercial portfolio 164,054$ 76,971$ 87,083$ 113%
Retail portfolio 80,439 74,602 5,837 8%
1-4 family originated for sale 32,424 38,908 (6,484) (17%)
Total loan originations 276,917$ 190,481$ 86,436$ 45%
Quarter Ended Change
(1) See Non-GAAP Disclosure Appendix.
Source: Company documents previously filed with the SEC
Positioned for
growth 35
Fiscal Year Ended June 30, 2017 Highlights
As Reported 06/30/2017 06/30/2016 Amount Percent
Net income 11,847$ 11,456$ 391$ 3%
EPS - diluted 0.65$ 0.65$ -$ 0%
ROA 0.40% 0.42% (0.02%) -5%
Net interest margin (tax equivalent) 3.49% 3.37% 0.12% 3.56%
Noninterest income 15,440$ 13,503$ 1,937$ 14%
Core Earnings (1)
Net income 17,111$ 12,228$ 4,883$ 40%
EPS - diluted 0.94$ 0.70$ 0.24$ 34%
ROA 0.58% 0.45% 0.13% 29%
Organic Loan Growth
$ Growth 242,501$ 74,757$ 167,744$ 224%
% Growth 14.40% 4.43% 9.97% 225%
Loan originations:
Commercial portfolio 541,515$ 336,655$ 204,860$ 61%
Retail portfolio 305,395 266,512 38,883 15%
1-4 family originated for sale 134,258 91,963 42,295 46%
Total loan originations 981,168$ 695,130$ 286,038 41%
Year Ended Change
(Dollars in thousands, except per share amounts)
Source: Company documents previously filed with the SEC
(1) See Non-GAAP Disclosure Appendix.
Positioned for
growth
(Dollars in thousands, except per share amounts)
36
Balance Sheet Highlights
09/30/2017 09/30/2016 Amount Percent
Total assets 3,249,998$ 2,754,109$ 495,889$ 18%
Total loans 2,394,755 1,881,481 513,274 27%
Core deposits 1,642,431 1,376,220 266,211 19%
Total deposits 2,100,310 1,793,528 306,782 17%
Stock olders' equity 405,499 364,401 41,098 11%
Nonperforming loans/ Total loans 0.59% 0.90% (0.31%) (34%)
Classified assets/Total assets 1.50% 2.07% (0.57%) (28%)
Book value per share 21.38$ 20.25$ 1.13$ 6%
Tangible book value per share (1) 19.81$ 19.31$ 0.50$ 3%
At Change
Source: Company documents previously filed with the SEC
(1) See Non-GAAP Disclosure Appendix.
Positioned for
growth 37
Improving Earnings Performance
$9,746
$8,256
$11,784
$12,228
$17,111
$5,595
$22,380
$0.49
$0.44
$0.61
$0.70
$0.94
$1.20
$-
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
(annualized)
Net Income - Annualized
Net Income - Adjusted
Diluted EPS - Adjusted
Dollars in thousands
See Non-GAAP Disclosure Appendix
Positioned for
growth 38
Market Price and Price to Tangible Book
$16.96
$15.77
$16.76
$18.50
$24.40
$25.65
96.1%
89.2%
92.8% 97.1%
126.0%
129.4%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
06/30/2013 06/30/2014 06/30/2015 06/30/2016 06/30/2017 09/30/2017
Market Price per Share
Price to Tangible Book
Positioned for
growth
100.0
120.0
140.0
160.0
180.0
200.0
220.0
240.0
07/11/12 06/30/13 06/30/14 06/30/15 06/30/2016 06/30/2017 09/30/2017
Total Return Performance
HomeTrust Bancshares, Inc. NASDAQ Bank NASDAQ Composite
39
Total Shareholder Return
Positioned for
growth 40
Community Banks Headquartered in North Carolina
$33,612
$36,542
$32,170
$50,502
$20,047
25
25
24
22
12
0
5
10
15
20
25
30
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
FY 2013 FY 2014 FY 2015 FY 2016 09/30/2017
Assets No. of Banks > $500 million & < $10 billion
Dollars in millions
Positioned for
growth 41
Proven Growth Strategy
• Building on Our Strong Organic Growth
• 7 new metro markets (including our new Greensboro LPO)
• Commercial lending
• Mortgage banking
• Core deposits
• Expanding into New Lines of Business
• Indirect auto
• Equipment Finance
• SBA
• Opportunistic Acquisition Strategy
• Experienced integration team and proven process
• 4 whole bank acquisitions since 2013
• 3 Commercial Loan Production Offices with “lift-outs” from other banks
• Purchased 8 Bank of America branches
Positioned for
growth 42
Favorable Trading Price
From Compass Point Research and Trading, LLC
- Seeking Value, Top 10 Conversion Picks Near Book, October 2, 2017
Top Ten Conversion Picks, $2-10B in Assets
Ticker Name State
Market
Cap (M)
9/29/17
Price
Conversion
Type
Conversion
IPO Date Shares (M) Assets P/TBV
Consensus
2018
P/E(x) Yield
BHBK Blue Hills Bancorp, Inc MA 516 19.20 Standard 07/22/2014 26.861 2,514 133 27 3.1%
BNCL Beneficial Bancorp, Inc PA 1,259 16.60 2nd-step 01/13/2015 75.867 5,829 147 29 1.4%
BRKL Brookline Bancorp (Pro forma) MA 1,250 15.50 2nd-step 07/09/2002 80.660 6,982 185 16 2.3%
EBSB Meridian Bancorp, Inc (Pro forma) MA 1,001 18.65 2nd-step 07/29/2014 53.650 4,905 166 19 0.9%
FBNK First Connecticut Bancorp, Inc CT 426 26.75 Standard 06/30/2011 15.943 2,992 159 17 2.1%
HONE HarborOne Bancorp, MHC* MA 604 18.81 MHC 06/29/2016 32.121 2,566 96 32 NA
HTBI HomeTrust Bancshares, Inc NC 487 25.65 Standard 07/11/2012 18.968 3,207 133 22 NA
KRNY Kearny Financial Corp. NJ 1,295 15.35 2nd-step 05/19/2015 84.351 4,818 137 77 0.8%
TBNK Territorial Bancorp Inc HI 310 31.57 Standard 07/13/2009 9.830 1,924 132 16 2.5%
WNEB Western New England Bancorp, Inc MA 339 10.90 2nd-step 01/04/2007 31.070 2,073 144 18 1.1%
*HONE P/TB assumes a 2nd-step, with market adjusted TB = $19.69, current MHC TB = $10.06.
Positioned for
growth 43
Investor Contacts
Dana Stonestreet
Chairman, President and 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 28801
(828) 259-3939
www.hometrustbanking.com
Positioned for
growth
Non-GAAP Disclosure Appendix
44
Positioned for
growth
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, nonrecurring state tax
expense, gain from the sale of premises and equipment, and impairment charges for branch
consolidation; and return on assets ("ROA") and earnings per share ("EPS") excluding merger expenses,
nonrecurring state tax expense, gain from the sale of premises and equipment, and impairment charges
for branch consolidation. The Company believes these non-GAAP financial measures and ratios as
presented are useful for both investors and management to understand the effects of certain items and
provides an alternative view of the Company's performance over time and in comparison to the
Company's competitors.
Management elected to obtain additional FHLB borrowings beginning in November 2014 as part of a plan
to increase net interest income. The Company believes that showing the effects of the additional
borrowings on net interest income and net interest margins is useful to both management and investors
as these measures are commonly used to measure financial institutions performance and performance
against peers.
The Company believes these measures facilitate comparison of the quality and composition of the
Company's capital and earnings ability over time and in comparison to its competitors. These non-GAAP
measures have inherent limitations, are not required to be uniformly applied and are not audited. They
should not be considered in isolation or as a substitute for total stockholders' equity or operating results
determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly
titled measures reported by other companies.
45
Non-GAAP Disclosure Reconciliation
Positioned for
growth 46
Non-GAAP Disclosure Reconciliation
Set forth below is a reconciliation to GAAP of tangible book value, tangible book value per share, and
share price to tangible book:
Positioned for
growth 47
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:
Positioned for
growth 48
Non-GAAP Disclosure Reconciliation
Set forth to the right is a reconciliation
to GAAP net income, ROA, and EPS as
adjusted to exclude merger-related
expenses, nonrecurring state tax
expense, gain on sale of premises and
equipment, and impairment charge for
branch consolidation:
Positioned for
growth 49
Non-GAAP Disclosure Reconciliation
Set forth below is a reconciliation to GAAP net income and EPS as adjusted to exclude merger-related expenses, nonrecurring state tax
expense, gain on sale of premises and equipment, loan loss provision (recovery), and impairment charge for branch consolidation: