Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Q1 2017 Earnings Presentation
33 slides from Home Bancorp's earnings presentation, Apr 28, 2017
Slide 1: First Quarter 2017 Investor Presentation
First Quarter 2017 Investor Presentation
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain comments in this presentation contain certain forward looking statements (as defined in the Securities Exchange Act of 1934 and the regulations thereunder) . Forward looking statements are not historical facts but instead represent only the beliefs, expectations or
Slide 3: Our Company
Our Company ▪ Headquartered in Lafayette, Louisiana ▪ Founded in 1908 ▪ IPO completed in October 2008 ▪ Ticker symbol: HBCP (NASDAQ Global) ▪ Market Cap = $ 259MM as of April 26, 2017 ▪ Added to Russell 3000 Index in 2016 ▪ Assets = $ 1.6 billion as of March 31, 2017 ▪ Acquisition of Bank of New Orl
Slide 4: Disciplined Acquirer Since IPO
200% asset increase CAGR = 14.2% Statewide Bank • March 2010 • FDIC - assisted • Assets - $199MM Britton & Koontz Bank • February 2014 • Assets - $301MM • Cash @ 88% of BV Guaranty Savings Bank • July 2011 • Assets - $257MM • Cash @ 95% of BV Bank of New Orleans • September 2015 • Assets - $346MM •
Slide 5: Tangible Common Equity Ratio
Tangible Common Equity Ratio (1) Peers = BHCs $1 - $3 billion in assets. Peer data as of 12/31/2016. Source: SNL.com (1) Non - GAAP ratio (see tables 3 & 4 in appendix) 5
Slide 6: Improving Shareholder Returns
$0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015
Slide 7: Total Return Since 2008
Total Return Since 2008 Source: SNL.com. Data as of 4/26/2017 -100 -50 0 50 100 150 200 250 300 350 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-
Slide 8: Quarterly Results
Quarterly Results (1) Excludes gain on asset sales and merger - related expenses (see Table 1 in appendix) 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 GAAP Basis: Reported Net Income ($000’s) $3,350 $4,016 $4,360 $4,282 $5,006 Diluted EPS $0.47 $0.57 $0.61 $0.60 $0.69 ROA 0.87% 1.04% 1.14% 1.11% 1.28% R
Slide 9: Effective Balance Sheet Management
Effective Balance Sheet Management % of assets • Steady organic loan growth • Relatively small investment portfolio • Core deposit growth has offset capital deployment (1) Excludes loans held for sale 2009 2010 2011 2012 2013 2014 2015 2016 1Q 2017 Cash and Equivalents 5% 6% 4% 4% 4% 3 % 2% 2% 3% In
Slide 10: Steady Organic Loan Growth
Steady Organic Loan Growth (excludes acquisition accounting adjustments) Originated Loan CAGR = 13% 10
Slide 11: Loan Portfolio as of March 31, 2017
In 2008, virtually 100% of loans were located in the Lafayette market. Loan Portfolio as of March 31, 2017 Balance: $ 1.2 billion 1 st Q 2017 average yield = 5.29% CRE 36% 1 - 4 Family 28% C&I 11% Const/Land 11% Home Equity 7% Multi - family 4% Consumer 3% New Orleans 36% Lafayette 26% Northshore 17
Slide 12: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio as of March 31, 2017 Balance: $ 444 million 12
Slide 13: C&I Portfolio
C&I Portfolio as of March 31, 2017 Balance: $ 134 million 13
Slide 14: Construction and Land Portfolio
Construction and Land Portfolio as of March 31, 2017 Balance: $ 132 million 14
Slide 15: 1-4 Family First Mortgage Portfolio
• Acquisition of BNO increased mortgage portfolio • 84% of acquired BNO mortgage loans still held are 10 and 15 yr fixed mortgages and ARMs • Limited exposure to 30 year fixed - rate mortgages 1 - 4 Family First Mortgage Portfolio as of March 31, 2017 Balance: $ 340 million 15
Slide 16: Energy Loans
Energy Loans • No shared national credits • Unfunded loan commitments to energy companies = $5.7MM • Energy ALLL = 3.3% as of March 31, 2017 16 CRE $12,845 39% 1.0% Construction and Land 1,068 3% 0.1% Total Real Estate $13,913 42% 1.1% Equipment $5,037 15% 0.4% Marine Vessels 5,974 18% 0.5% Accounts
Slide 17: Non Performing Assets / Assets
• Originated NPAs historically low • Aggressively reducing acquired NPAs • Credit discounts on acquired loans Non Performing Assets / Assets Peers = BHCs $1 - $3 billion in assets. Peer data as of 12/31//2016 . Source: SNL.com 17
Slide 18: Credit Quality
• Increased ALLL on originated loans due primarily to the potential direct and indirect impact of continued low energy prices • ALLL does not include credit discounts on acquired loans • Low net charge offs Credit Quality (dollars in thousands) 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Beginni
Slide 19: Investment Portfolio as of March 31, 2017
• $ 205 MM, or 13% of Assets • 2.4 Year Effective Duration • 2.23% TE yield in 1 st Q 2017 • 14% of investments are variable rate Investment Portfolio as of March 31, 2017 Current +100 +200 +300 Market Value / Book 0.1% -3.0% -6.3% -9.7% Avg Life / Reprice Term 3.2 3.6 3.9 4.2 Avg Life 3.8 4.2 4.5 4
Slide 20: Deposit Mix
Deposit Mix • 1Q 2017 average cost on interest - bearing deposits = 0.42% • No non - relationship brokered deposits • Loan/Deposit ratio increased from 89% (June 30, 2015) to 96% (March 31, 2017) mostly due to acquired BNO loans and deposits 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% - 200,000 400,00
Slide 21: Net Interest Margin (TE)
Net Interest Margin (TE) Peers = BHCs $1 - $3 billion in assets. Peer data as of 12/31/2016 . Source: SNL.com Outperformed peers by 86 basis points 21
Slide 22: Net Interest Margin Drivers
Net Interest Margin Drivers 5 basis point spread Peer = BHCs $1 - $3 billion in assets. Peer data as of 12/31/2016 . Source: SNL.com 76 basis point spread • Favorable asset mix – Gross Loans = 77% of assets (75th percentile) – Investments = 13% of assets ( 31st percentile) • Average loan yield of 5.
Slide 23: Non-Interest Income
• Deposit product redesign complete; full rollout in mid - 2017 • Recently changed mortgage sales reporting to ensure greater alignment • Expanded brokerage team in 2016 Non - Interest Income (1) Excludes one time gains ( see Table 1 in appendix) Peers = BHCs $1 - $3 billion in assets. Peer data as
Slide 24: Non-Interest Expense
Non - Interest Expense (1) Excludes merger - related costs (see Table 2 in appendix) Peers = BHCs $1 - $3 billion in assets. Peer data as of 12/31/2016 . Source: SNL.com • Significant efficiencies obtained through B&K and BNO acquisitions • 2 branch closures related to BNO acquisition • Infrastructu
Slide 25: Interest Rate Risk as of March 31, 2017
Change in Interest Rates (1) % Change in NII at 3/31/17 (2) +100 0.7% +200 0.9% +300 1.0% Interest Rate Risk as of March 31, 2017 1) Assumes an instantaneous and parallel shift in interest rates. 2) The actual impact of changes in interest rates will depend on many factors including but not limited
Slide 26: Share Information
Share Information (1) Excludes one - time gains and merger - related costs (see Table 1 in appendix) (2) Non - GAAP ratio (see Table 4 in appendix) 2Q 2016 3Q 2016 4Q 2016 1Q 2017 12 Months Diluted EPS (GAAP) $0.57 $0.61 $0.60 $0.69 $2.47 Adjusted Diluted EPS (Non - GAAP) (1) $0.53 $0.61 $0.60 $0.66
Slide 27: Capital Deployment Strategy
Capital Deployment Strategy • Acquisitions – Prior acquisitions have been cash transactions • Immediate ROE and EPS Impact (excluding merger costs) • Steady Organic Loan Growth • Cash Dividends – Announced company’s first dividend ($0.07/share) in November 2014 – Raised dividend to $0.14/share in Ap
Slide 28: Investment Perspective
Investment Perspective Consistently superior organic asset quality Deep customer relationships – 108 years EPS - focused acquirer; experienced deal team Strong capital base - Disciplined deployment & well positioned for additional acquisitions Low direct energy exposure 28
Slide 29: Meet Our Team
MEET OUR TEAM <a JOHN BORDELON JOSEPH ZANCO PRESIDENT/CEO cro 1998, Previous servegin Prevouty served ot voieus management ond Corporate Contler ong ‘ther poilons ane ning Paneipal Accounting Otter the Bonk in 96). Former fortoerobenk Chatman of he folowing Srgonizatons! Greater ‘Commerce, Univerity
Slide 30: Appendix Non-GAAP Reconciliation
Appendix Non - GAAP Reconciliation 30 (dollars in thousands) 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Reported non-interest expense 12,341$ 11,856$ 10,643$ 11,957$ 11,031$ Less: Merger-related expenses 613 214 - - - Non-GAAP non-interest expense 11,728$ 11,642$ 10,643$ 11,957$ 11,031$ Reported non-in
Slide 31: Appendix Non-GAAP Reconciliation
Appendix Non - GAAP Reconciliation As of December 31st (dollars in thousands) 2010 2011 2012 2013 2014 2015 2016 Total Shareholders' Equity 131,530$ 134,285$ 141,574$ 141,910$ 154,144$ 165,046$ 179,843$ Less: Intangibles 1,781 2,676 2,241 1,909 4,266 15,304 12,762 Non-GAAP tangible shareholders' equ
Slide 32: Appendix Non-GAAP Reconciliation
Appendix Non - GAAP Reconciliation (dollars in thousands) 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Total Shareholders' Equity 173,567$ 177,362$ 179,843$ 184,720$ Less: Intangibles 13,524 12,956 12,762 12,577 Non-GAAP tangible shareholders' equity 160,043$ 164,406$ 167,081$ 172,143$ Total Assets 1,545,049$ 1,
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