Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Q4 2023 Earnings Presentation
29 slides from Home Bancorp's earnings presentation, Jan 23, 2024
Slide 1: Q4 2023 Investor Presentation
Q4 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 • 42 locations across Southern Louisiana, Western Mississippi and Houston Total Assets Highlights: $3.3B • Total Assets: $3.3 billion at Decem
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) 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Profitability Net income $ 10,434 $ 10,776 $ 11,320 $ 9,781 $ 9,754 $ 9,385 Diluted EPS 1.28 1.32 1.39 1.21 1.22 1.17 ROA 1.27 % 1.35 % 1.43 % 1.21 % 1.18 % 1.13 % ROE 12.4 13
Slide 6: Asset Growth
Asset Growth Texan Bank St. Martin 3,500 Bank & Trust 3,000 Bank of New Orleans Home Bank Total Assets ($ in millions) 2,500 Guaranty Britton & Koontz 2,000 Savings Bank Bank 1,500 Statewide Bank CAGR = 13.0% 1,000 as of December 31, 2023 500 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 7: Earnings
Earnings Net Income Diluted EPS ($ in millions) $60 $7.00 $48.6 $6.00 $5.77 $50 $4.99 $40.2 $5.00 $40 $4.16 $34.1 $31.6 $4.00 $3.40 $30 $27.9 $3.05 $24.8 $3.00 $2.85 $2.25 $2.28 $20 $16.0 $16.8 $2.00 $1.79 $12.6 $1.42 $9.9 $10 $1.00 $0 $0.00 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 201
Slide 8: Profitability
(1) Profitability Return on Average Assets Return on Average Equity 2.0% 16.0% 1.8% 14.0% 1.6% 1.53 11.8 11.9 12.0% 11.4 1.4% 1.32 1.25 1.27 1.12 10.0% 9.3 8.9 1.2% 1.04 8.5 1.0% 8.0% 1.76 14.4 0.8% 6.0% 1.46 10.9 11.6 0.6% 1.27 1.23 10.2 1.07 4.0% 9.0 0.99 7.8 0.4% 0.2% 2.0% 0.0% 0.0% 2018 2019 202
Slide 9: Loan Balance Outstanding
Organic Loan Growth (excludes acquisition accounting & unearned income) 3,000 2,500 CAGR Excluding PPP Loans: Total Loan CAGR = 15% Loan Balance Outstanding ($ in millions) 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 2
Slide 10: Loan Portfolio
Loan Portfolio (as of December 31, 2023) Composition Market Diversification Consumer, 1% MS, 2% Home Equity, 3% Multifamily, 4% Baton Rouge, 10% Acadiana, 30% C&D, 13% Northshore CRE, 46% 14% C&I, 16% Houston, 17% New Orleans, 27% 1-4 Mortgage, 17% CRE Loan Portfolio 2023 growth rate - 6% • Owner Oc
Slide 11: Non-Owner Occupied CRE
Office Exposure Non-Owner Occupied CRE (as of December 31, 2023) Office Loans Average Office Healthcare, 2% Restaurant/Bar, 2% Total Loan Balance Medical Office, 3% $79.7 million or $1.2 million Other Specialty Use, 4% 3.1% of total loans Zero nonaccrual and criticized loans in Retail - Single Tenan
Slide 12: C&D Portfolio
C&D Portfolio Composition (as of December 31, 2023) Lots, Development and Total Average Unimproved Land, Balance Balance 24% $340.7 million $520.0K Commercial Construction, 47% 0.35% $659K on Nonaccrual 1-4 Family Construction, 29% net charge-offs or $1.2 million since 2009 Historic Charge-off (Reco
Slide 13: Changes in ALL
Changes in ALL 2021 2022 2023 $40 $2.3 $3.7 $30 $(0.1) $3.8 ($ in millions) $(0.7) $1.4 $20 $29.3 $31.5 $10 $21.1 $0 Dec 2021 Allowance for Provision for Organic Net Charge- Dec 2022 Organic Net Charge- Dec 2023 Texan Bank Texan Loan Provision offs Provision offs Acquired PCD Portfolio Loans (dollar
Slide 14: Credit Quality Trends
Credit Quality Trends NPAs / Assets ALL / NPAs 1.6% 300% 1.4% 1.30 1.21 267 304 1.16 250% 1.2% 1.0% 200% 165 1.01 0.77 0.8% 150% 0.6% 0.72 0.75 0.49 146 0.34 100% 0.4% 0.31 0.40 50% 0.2% 0.20 0.28 0.14 57 63 63 0.0% 0% 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 NPAs / Tota
Slide 15: Investment Portfolio
Investment Portfolio 13% 2.4% of total assets Q4 yield (dollars in millions) Book Value Gain/(loss) Eff. Duration $43.4 million 99.8% MBS $219 $(23) 4.7 loss approximately AFS CMBS 158 (10) 3.1 9.1% of book value Muni 55 (7) 6.4 CMO 20 (1) 3.7 Agency 19 (1) 3.1 $20.0 million $13.1 million Corp 7 (1)
Slide 16: Deposits
Deposits (as of December 31, 2023) $32,495 $2,800 11% 11% 11% 11% 12% 9% Average deposit size 15% 15% 15% 15% 17% 16% $2,400 17% 13% 13% 22% 24% $ in millions 20% 28% 31% 25% Non-interest bearing 29% 24% 27% 28% $2,000 deposit composition 28% 30% 34% 28% 25% 24% $1,600 2018 2019 2020 2021 2022 2023
Slide 17: Deposits
Deposits (as of December 31, 2023) Uninsured Deposits(1) Retail Business Public Broker Total FDIC Insured 46% 18% —% —% 64% Approximately $587 million or 22% of total deposits Uninsured (1) 7 15 — — 22 Reciprocal — 5 — — 5 Public Funds — — 7 — 7 Coverage of Brokered Deposits — — — 2 2 Uninsured Depo
Slide 18: Yields
Yields NIM (TE) Quarter Month NIM 4.80% 1.58% 4.38 3.69% Cost of total deposits for 4.40% 4.11 4.18 for the quarter ended the quarter ended 3.94 December 2023 December 2023 4.00% 3.76 3.75 3.69 3.71 3.66 3.70 3.60% 3.39 Short-term FHLB advances at December 31, 2023 was $150 million with an average c
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% -200 (3.9)% 3.00% -100 (1.8)% 2.00% +100 1.1% 1.00% +200 1.9% —% 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-Q3-Q4- 16 16 16 17 17 17 17 18 18 18 18 19
Slide 20: Noninterest Income & Expense
Noninterest Income & Expense 4Q 1Q 2Q 3Q 4Q Noninterest Income(1) / Assets (dollars in thousands) 2022 2023 2023 2023 2023 0.65% Service fees and charges $ 1,198 $ 1,250 $ 1,230 $ 1,277 $ 1,235 0.62 0.62 0.62 Bank card fees 1,566 1,787 1,715 1,903 1,646 0.60% 0.57 Gain on sale of loans 22 57 26 687
Slide 21: Capital
Capital Dividends Per Share Share Repurchase Activity $1.50 Average Year # Shares Price Cash Utilized 2018 30,887 $ 38.66 $ 1,194,061 $1.00 $1.00 $0.91 $0.93 $0.84 $0.88 2019 419,498 36.82 15,444,895 $0.71 2020 530,504 26.41 14,011,605 $0.55 $0.50 $0.41 2021 246,012 36.18 8,900,409 2022 288,350 39.3
Slide 22: Capital
Capital Capital Ratios (Bank only) 20% 15.9 15.2 14.7 15% 13.9 13.6 14.0 14.1 13.7 14.2 12.4 12.8 12.8 12.5 13.0 10.4 10.7 10.8 10.7 11.0 9.7 9.8 10% 5% 0% 2020 2021 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Tier 1 leverage capital Common equity tier 1 Total risk-based capital Regulatory Capital and Adju
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) 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Total shareholders' equity $ 316,656 $ 329,954 $ 345,100 $ 346,117 $ 345,332 $ 367,444 Less: intangible assets 87,839 87,973 87,527 87,138 86,749 86,372 Non-GAAP tangible
Slide 26: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands) 2018 2019 2020 2021 2022 2023 Total shareholders' equity $ 304,040 $ 316,329 $ 321,842 $ 351,903 $ 329,954 $ 367,444 Less: intangible assets 66,055 64,472 63,112 61,949 87,973 86,372 Non-GAAP tangible shareholders' equity $ 237,985 $ 251,857
Slide 27: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands) 2018 2019 2020 2021 2022 2023 Reported noninterest income $ 13,447 $ 14,415 $ 14,305 $ 16,271 $ 13,885 $ 14,636 Less: BOLI benefit — 1,194 — 1,717 — — Less: gain (loss) on sale of securities — — — — — (249) Less: gain (loss) on sale of assets
Slide 28: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands except for per share data) ) 2018 2019 2020 2021 1Q2022 2022 1Q2023 2Q2023 3Q2023 4Q2023 Total shareholders' equity $ 304,040 $ 316,329 $ 321,842 $ 351,903 $ 337,504 $ 329,954 $ 345,100 $ 346,117 $ 345,332 $ 367,444 Less: intangible assets 66,
Slide 29: Member FDIC | Equal Housing Lender
Member FDIC | Equal Housing Lender