Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Q2 2023 Earnings Presentation
29 slides from Home Bancorp's earnings presentation, Jul 18, 2023
Slide 1: Q2 2023 Investor Presentation
Q2 2023 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 Headquarters: Lafayette, LA Ticker: HBCP (NASDAQ) History: • Founded in 1908 • IPO completed October 2008 • Six acquisitions completed since 2010 • 43 locations across Southern Louisiana, Western Mississippi and Houston Total Assets Highlights: $3.3B • Total Assets: $3.3 billion at June
Slide 4: Our Markets
Our Markets Lafayette New Orleans Greater Acadiana Region TOTAL BRANCHES: 6 TOTAL BRANCHES: 14 NATCHEZ Northshore Baton Rouge TOTAL BRANCHES: 6 TOTAL BRANCHES: 4 Southwest Acadiana NORTHSHORE Houston TOTAL BRANCHES: 5 TOTAL BRANCHES: 5 Mississippi TOTAL BRANCHES: 3 HOUSTON sn NEW ORLEANS a* “ss; Sc
Slide 5: Quarterly Financial Highlights
Quarterly Financial Highlights (dollars in thousands, except per share data) 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Profitability Net income $ 4,401 $ 8,461 $ 10,434 $ 10,776 $ 11,320 $ 9,781 Diluted EPS 0.53 1.03 1.28 1.32 1.39 1.21 ROA 0.60 % 1.03 % 1.27 % 1.35 % 1.43 % 1.21 % ROE 5.1 10.
Slide 6: Asset Growth
Asset Growth 4,000 St. Martin Texan Bank Bank & Trust Bank of New Home Bank Total Assets ($ in millions) Orleans 3,000 Guaranty Britton & Koontz Savings Bank Bank 2,000 Statewide Bank CAGR = 13.4% 1,000 as of June 30, 2023 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Jun-23 YTD A
Slide 7: Earnings
Earnings Net Income Diluted EPS ($ in millions) $60 $7.00 $6.00 $5.77 $50 $48.6 $5.00 $40 $4.16 $34.1 $31.6 $4.00 $30 $3.40 $27.9 $3.05 $24.8 $3.00 $2.85 $2.60 $21.1 $2.25 $2.28 $20 $16.0 $16.8 $2.00 $1.79 $12.6 $1.42 $9.9 $10 $1.00 $0 $0.00 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 201
Slide 8: Profitability
(1) Profitability Return on Average Assets Return on Average Equity 2.0% 16.0% 1.8% 13.8 14.0% 1.6% 1.53 11.8 1.46 11.4 11.6 1.32 12.0% 1.4% 1.25 1.24 1.12 10.0% 9.3 8.9 1.2% 1.04 8.5 1.0% 8.0% 1.76 14.4 13.5 0.8% 6.0% 1.46 1.43 10.9 11.3 0.6% 1.27 1.21 10.2 0.99 1.07 4.0% 9.0 7.8 0.4% 0.2% 2.0% 0.0
Slide 9: Organic Loan Growth
Organic Loan Growth (excludes acquisition accounting & unearned income) 3,000 2,500 CAGR Excluding PPP Loans: Loan Balance Outstanding ($ in millions) Total Loan CAGR = 15% Originated Loan CAGR = 13% 2,000 1,500 1,000 500 — 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 J
Slide 10: Loan Portfolio
Loan Portfolio (as of June 30, 2023) Composition Market Diversification Consumer, 1% MS, 2% Home Equity, 3% Multifamily, 4% Baton Rouge, 11% Acadiana, 30% C&D, 13% Northshore CRE, 47% 13% C&I, 15% Houston, 16% New Orleans, 28% 1-4 Mortgage, 17% CRE Loan Portfolio 2Q 2023 annualized growth rate - 6%
Slide 11: Non-Owner Occupied CRE / Office Exposure
Office Exposure Non-Owner Occupied CRE (as of June 30, 2023) Office Loans Average Office Healthcare, 2% Restaurant/Bar, 1% Total Loan Balance Medical Office, 3% $81.4 million or $1.2 million 3.2% of total loans Other Specialty Use, 4% Zero nonaccrual and criticized loans in Retail - Single Tenant, 4
Slide 12: C&D Portfolio
C&D Portfolio Composition (as of June 30, 2023) Lots, Total Average Development and Unimproved Land, Balance Balance 25% $327.5 million $449.2K Commercial Construction, 43% 0.7% $659K on Nonaccrual 1-4 Family net charge-offs Construction, 32% or $2.3 million since 2009 Historic Charge-off (Recovery
Slide 13: Changes in ALL
Changes in ALL 2021 2022 2023 $40 $3.7 $1.3 $— $30 $3.8 ($ in millions) $(0.7) $1.4 $20 $29.3 $30.6 $10 $21.1 $0 Dec 2021 Allowance for Provision for Organic Net Charge- Dec 2022 Organic Net Charge- Jun 2023 Texan Bank Texan Loan Provision offs Provision offs Acquired PCD Portfolio Loans (dollars in
Slide 14: Credit Quality Trends
Credit Quality Trends NPAs / Assets ALL / NPAs 1.6% 267 1.4% 1.30 250% 1.16 1.21 1.2% 247 200% 165 1.0% 1.01 0.77 150% 0.8% 146 0.6% 0.72 0.75 0.49 100% 0.34 0.38 0.4% 0.40 0.21 50% 0.2% 57 63 63 0.28 0.14 0.0% 0% 2017 2018 2019 2020 2021 2022 Jun-23 2017 2018 2019 2020 2021 2022 Jun-23 YTD YTD NPAs
Slide 15: Investment Portfolio
Investment Portfolio 14% 2.37% of total assets Q2 yield (dollars in millions) Book Value Gain/(loss) Eff. Duration $53.2 million 99.8% MBS $234 $(27) 4.8 loss approximately AFS CMBS 163 (14) 3.4 10.6% of book value Muni 57 (8) 6.7 CMO 21 (1) 4.5 Agency 20 (1) 3.2 $6.1 million $11.0 million Corp 7 (1
Slide 16: Deposits
Deposits (as of June 30, 2023) $31,629 $2,800 11% 11% 11% 11% 12% 10% Average deposit size 17% 15% 15% 15% 14% 16% $2,400 17% 13% 13% 18% 22% $ in millions 20% 33% 31% 25% 25% Non-interest bearing 29% 27% 28% $2,000 deposit composition 28% 30% 34% 33% 25% 24% $1,600 2018 2019 2020 2021 2022 Jun 2023
Slide 17: Deposits
Deposits (as of June 30, 2023) Uninsured Deposits(1) Retail Business Public Broker Total FDIC Insured 44% 19% —% —% 63% Approximately $570 million or 23% of total deposits Uninsured (1) 6 17 — — 23 Reciprocal — 4 — — 4 Public Funds — — 8 — 8 Coverage of Brokered Deposits — — — 2 2 Uninsured Deposits
Slide 18: Yields
Yields NIM (TE) 4.50% 4.38 NIM decreased 1.30% 4.18 4.11 24 bps Cost of interest-bearing 3.94 deposits for the quarter 4.00% for the quarter ended 3.76 ended June 2023 June 2023 3.50% 3.39 Short-term FHLB advances at June 2023 was $262 million with a cost of 5.12% 3.00% 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23
Slide 19: Interest Rate Risk
Interest Rate Risk Liability Betas Forecasted Change in NII 5.00% Rate Shock 1 Year % Change in NII 4.00% -100 (1.5)% 3.00% +100 0.7% 2.00% +200 1.1% 1.00% +300 1.6% —% Q2-Q3-Q4-Q1-Q2-Q3-Q4-Q1-Q2-Q3-Q4-Q1-Q2-Q3-Q4-Q1-Q2-Q3-Q4-Q1-Q2-Q3-Q4-Q1-Q2-Q3-Q4-Q1- Q2- 16 16 16 17 17 17 17 18 18 18 18 19 19 19
Slide 20: Noninterest Income & Expense
Noninterest Income & Expense 2Q 3Q 4Q 1Q 2Q Noninterest Income(1) / Assets (dollars in thousands) 2022 2022 2022 2023 2023 0.65% 0.62 Service fees and charges $ 1,257 $ 1,300 $ 1,198 $ 1,250 $ 1,230 0.62 0.62 Bank card fees 1,636 1,623 1,566 1,787 1,715 0.60% 0.57 Gain on sale of loans 264 78 22 57
Slide 21: Capital
Capital Dividends Per Share Share Repurchase Activity $1.00 $0.93 Average $0.88 $0.91 Year # Shares Price Cash Utilized $0.84 $0.71 2018 30,887 $ 38.66 $ 1,194,061 $0.75 $0.55 2019 419,498 36.82 15,444,895 $0.50 $0.50 $0.41 2020 530,504 26.41 14,011,605 2021 246,012 36.18 8,900,409 $0.25 2022 288,35
Slide 22: Capital
Capital Capital Ratios (Bank only) 20% 15.9 15.2 14.7 15% 13.9 13.6 14.0 14.1 12.4 12.8 12.8 10.4 10.7 10.8 9.7 9.8 10% 5% 0% 2020 2021 2022 1Q 2023 2Q 2023 Tier 1 leverage capital Common equity tier 1 Total risk-based capital Regulatory Capital and Adjusted Capital as of 6/30/2023 As Reported Inclu
Slide 23: Investment Perspective
Investment Perspective IIs Strong earnings and shareholder returns Conservative, well-managed Market disruption mA credit culture creates new opportunities ES a Disciplined acquirer Insider owners committed to continual improvement L 2 Homeff¥Bancorpinc. | 23 oO
Slide 24: Celebrating years of serving the communities that built us
Celebrating 115 years of serving a | 5 the communities that built us. AAU HOUSTON NATCHEZ NEW ORLEANS NORTHSHORE Home ff Bancorp Inc. | 24
Slide 25: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands, except per share data) 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Total shareholders' equity $ 337,504 $ 329,124 $ 316,656 $ 329,954 $ 345,100 $ 346,117 Less: intangible assets 87,569 88,309 87,839 87,973 87,527 87,138 Non-GAAP tangible
Slide 26: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands) 2018 2019 2020 2021 2022 Jun-23 YTD Total shareholders' equity $ 304,040 $ 316,329 $ 321,842 $ 351,903 $ 329,954 $ 346,117 Less: intangible assets 66,055 64,472 63,112 61,949 87,973 87,138 Non-GAAP tangible shareholders' equity $ 237,985 $ 25
Slide 27: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands) 2018 2019 2020 2021 2022 Jun-23 YTD Reported noninterest income $ 13,447 $ 14,415 $ 14,305 $ 16,271 $ 13,885 $ 6,759 Less: BOLI benefit — 1,194 — 1,717 — — Less: gain (loss) on sale of securities — — — — — (249) Less: gain (loss) on sale of a
Slide 28: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands) 2018 2019 2020 2021 1Q2022 2022 1Q2023 Jun-23 YTD Total shareholders' equity $ 304,040 $ 316,329 $ 321,842 $ 351,903 $ 337,504 $ 329,954 $ 345,100 $ 346,117 Less: intangible assets 66,055 64,472 63,112 61,949 87,569 87,973 87,527 87,138 Non-G
Slide 29: Member FDIC | Equal Housing Lender
Member FDIC | Equal Housing Lender