Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Raymond James 2015 U.S. Bank Conference
35 slides from Home Bancorp's conference presentation, Sep 9, 2015
Slide 1: Raymond James 2015 U.S. Bank Conference
September 9, 2015 Raymond James 2015 U.S. Bank Conference
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 hereunder). Forward looking statements are not historical facts but instead represent only the beliefs, expectations or o
Slide 3: Our Company
Our Company 3 • Headquartered in Lafayette, Louisiana – Bank founded in 1908 • National Bank Charter – Bank converted from Federal Savings Bank in 2015 • IPO completed in October 2008 • Ticker symbol: HBCP (NASDAQ Global) • Market Cap = $179 MM • Assets = $1.2 billion as of June 30, 2015 • Acquisiti
Slide 4: Significant Asset Growth Since IPO
Significant Asset Growth Since IPO 4 200% asset increase CAGR = 17.6%* Statewide Bank • March 2010 • FDIC - a ssisted • Assets - $199MM Guaranty Savings Bank • July 2011 • Assets - $257MM • Cash @ 95% of book Britton & Koontz Bank • February 2014 • Assets - $301MM • Cash @ 88% of book Louisiana Banc
Slide 5: Favorable Balance Sheet Mix Change
Favorable Balance Sheet Mix Change (% of assets) 5 2008 2009 2010 2011 2012 2013 2014 2Q 2015 Cash & Equivalents 9% 5% 6% 4% 4% 4% 3 % 3 % Investments 22% 23% 18% 16% 17% 16% 15% 15% Total Loans, net 63% 64% 63% 69% 70% 71% 74% 74% Other Assets 6% 8% 13% 11% 9% 9% 8% 8% Non Maturity Deposits 38% 41%
Slide 6: Strong Organic Loan Growth
Strong Organic Loan Growth (excludes acquisition accounting discounts ) Originated Loan CAGR = 13% 6
Slide 7: Market Diversification as of June 30, 2015
7 In 2008, virtually 100% of Home Bank loans and deposits were located in Lafayette Market. Market Diversification as of June 30, 2015 Loans Deposits
Slide 8: Limited Direct Energy Exposure
Limited Direct Energy Exposure as of August 31, 2015 8 C&D $882 $0 $882 C&I 17,367 9,933 27,300 CRE 15,754 252 16,007 Total Balance $34,003 $10,185 $44,189 % of Total Loans 3.7% 1.1% 4.8% Average Loan Balance ($000s) $365 CRE - Average LTV 43% Substandard Loan Balance ($000s) $2,560 Outstanding Bala
Slide 9: Louisiana Industries
Louisiana Industries 9 • Business climate ranked #1 by Business Facilities magazine and #2 by Site Selection magazine • Lowest tax burden in the U.S. for new manufacturing firms • Best workforce training program five years running Trade, transportation, and utilities 17% 20% 21% 20% Government 18% 1
Slide 10: Loan Portfolio Composition
Loan Portfolio Composition as of June 30, 2015 10 B alance: $916 million Pro Forma estimate after close of LABC: $1.2 billion
Slide 11: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio as of June 30, 2015 11 Balance: $341 million
Slide 12: C&I Portfolio
C&I Portfolio as of June 30, 2015 12 Balance: $115 million
Slide 13: Construction and Land Portfolio
Construction and Land Portfolio as of June 30, 2015 13 Balance: $94 million
Slide 14: Family First Mortgage Portfolio
1 - 4 Family First Mortgage Portfolio as of June 30, 2015 • Decline in overall loan composition since 2008 – 41% in 2008 – 26% in 2Q 2015 • Limited exposure to 30 year fixed - rate mortgages – $59MM, or 6%, of total loans as of 2 Q 2015 • Approximately 95% of LABC’s mortgages mature/reprice < 15 yea
Slide 15: Non Performing Assets / Assets
Non Performing Assets / Assets • Originated NPAs historically low • Aggressively reducing acquired NPAs • Credit discounts on acquired loans • Excellent credit at LABC: 0.43% NPAs/Assets as of June 30, 2015 (source: snl.com) 15 Peer = BHCs $1 - $3 billion in assets. Peer data as of 3/31/2015. Source
Slide 16: Net Charge Offs / Average Loans
16 Net Charge Offs / Average Loans • Credit discounts on acquired loans offset losses • Acquired loans performing better than anticipated since acquisition Low Net Charge Offs on Acquired Loans
Slide 17: Credit Coverage
• Credit coverage on acquired loans = 11.4% of outstanding balance 17 Credit Coverage as of June 30, 2015
Slide 18: Investment Portfolio as of June 30, 2015
• $193 MM, or 16% of Assets • 2.6 Year Effective Duration • 2.13% TE Yield in 2 nd Q 2015 • 22% of investments are variable rate 18 Investment Portfolio as of June 30, 2015 Current +100 +200 +300 Market Value / Book 0.9% -3.0% -6.1% -9.3% Avg Life / Reprice Term 3.1 3.5 3.8 4.1 Avg Life 4.0 4.5 4.8
Slide 19: Deposit Growth and Composition
Deposit Growth and Composition 19 • Favorable mix change while growing total deposits • 2Q 2015 cost on interest - bearing deposits = 0.37 % • 75 th percentile in non interest deposits / deposits • No non - relationship brokered deposits 2008 2Q 2015 Change DDA 19% 26% 7% MMDA 19% 24% 5% NOW 12% 21%
Slide 20: Interest Rate Risk
Interest Rate Risk as of June 30, 2015 Change in Interest Rates (1) % Change in NII at 6/30/15 (2) +100 0.1% +200 - 0.1% +300 - 0.4% 20 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 li
Slide 21: Quarterly Results
Quarterly Results 21 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Reported Net Income ($000’s) $ 2,753 $ 2,877 $2,809 $2,848 $2,840 Merger Adjusted Net Income ($000’s) (1) $ 2,889 $ 2,880 $2,809 $2,848 $3,072 EPS - Diluted (1) $ 0.43 $ 0.41 $0.40 $0.41 $0.44 ROA (1) 0.93% 0.93% 0.90% 0.93% 0.98% ROE (1)
Slide 22: Net Interest Margin (TE)
Net Interest Margin (TE) 22 Outperformed peers by 92 basis points Peer = BHCs $1 - $3 billion in assets. Peer data as of 3/31/2015. Source: ffiec.gov
Slide 23: Net Interest Margin Drivers
Net Interest Margin Drivers • Favorable asset mix – Loans = 74% of assets (74 th percentile) – Investments = 15% of assets (33 rd percentile) • Loan yield of 5.44% in 2015 (89 th percentile) – Loan discount accretion – Higher concentration in construction loans 23 • Maintained lower costs than peers
Slide 24: Non-Interest Income
Non - Interest Income • New Retail and Mortgage leadership in 2014 • Restructured commercial and retail incentive plans to focus on new account acquisition 24 6/30/2015 YTD Composition Lagged peers by 17 basis points
Slide 25: Non-Interest Expense
Non - Interest Expense • Infrastructure for continued growth • Investments in commercial bankers across footprint • Considerable efficiencies gained in 2014 from B&K acquisition • Expect significant cost saves of 55% in LABC acquisition 25 6/30/2015 YTD Composition (1) Lagged peers by 28 basis point
Slide 26: HBCP Ownership
HBCP Ownership 26 Source: SNL (as reported through 8/27/2015) Top Institutional Holders Ownership % Firefly Value Partners LP 8.1% FJ Capital Management LLC 7.7% Jacobs Asset Management LLC 6.9% Fully Diluted Insider Ownership = 27%
Slide 27: Total Return Since 2008
Total Return Since 2008 27 Source: SNL. Data as of 09/2/2015
Slide 28: Share Information
Share Information 28 3Q 2014 4Q 2014 1Q 2015 2Q 2015 12 Months EPS – GAAP $0.41 $0.40 $0.41 $0.41 $1.63 EPS – Merger Adjusted (1) $0.41 $0.40 $0.41 $0.44 $1.66 Ending Share Price $22.71 $22.94 $21.27 $25.24 Dividend Yield 0.0% 1.2% 1.3% 1.3% P/ BV 107% 106% 97% 115% P/TBV 110% 109% 100% 118% Home Ba
Slide 29: Tangible Common Equity Ratio
Tangible Common Equity Ratio 29 * Based on preliminary estimate of HBCP management
Slide 30: Capital Deployment Strategy
Capital Deployment Strategy • Acquisitions – Prior acquisitions (including LABC) have been cash transactions • Immediate ROE and EPS Impact (excluding merger costs) 30 2 nd Quarter Profitability Core ROA (1)(2) 1.02% TCE Leverage Multiplier 8.08 ROATCE 8.23% Leverage Impact of LABC 1.02% 10.42 10.62
Slide 31: Capital Deployment Strategy
Capital Deployment Strategy • Organic Loan Growth • Cash Dividends – Announced company’s first dividend ($0.07/share) in 4 th Q 2014 – Raised dividend to $0.08/share in 3 rd Q 2015 • Share Repurchases (22% of IPO shares repurchased) – Buyback plan has approx. 38,000 shares remaining 31
Slide 32: Investment Perspective
Investment Perspective • Consistently superior organic asset quality • Deep customer relationships – 108 years • EPS - focused acquirer; experienced deal team • Strong capital base – Disciplined deployment – Well positioned for further acquisitions • Low direct energy exposure • Low trading multiple
Slide 33: Executive Leadership
Executive Leadership 33 Jason Freyou, Chief Operations Officer Joined Home Bank in 2015. Previously served as Chief Operations Officer for Teche Federal Bank. Darren Guidry, Chief Credit Officer Joined Home Bank in 1993. Previously served as Chief Lending Officer. Scott Ridley, Chief Banking Officer
Slide 34: Appendix Non-GAAP Reconciliation
Appendix Non - GAAP Reconciliation 34 (dollars in thousands) 2010 2011 2012 2013 2014 2015 Reported non-interest expense 24,373$ 31,002$ 32,763$ 33,205$ 41,772$ 19,947$ Less: Merger-related expenses (1,000) (2,053) - (307) (2,286) (256) Non-GAAP noninterest expense 23,373$ 28,949$ 32,763$ 32,898$ 39
Slide 35: Home Bancorp Inc.
Home fi Bancorp Inc.
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