Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Sandler O'Neill + Partners 2019 East Coast Financial Services Conference
23 slides from Home Bancorp's conference presentation, Nov 14, 2019
Slide 1: Sandler O'Neill + Partners 2019 East Coast Financial Services Conference
November 2019 Sandler O’Neill + Partners 2019 East Coast Financial Services Conference
Slide 2: 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 opinions of Home Bancorp,
Slide 3: Our Company
3 Our Company • Headquartered in Lafayette, Louisiana • Founded in 1908 • IPO completed October 2008 • Ticker symbol: HBCP (NASDAQ Global) • Market Cap = $ 369MM as of November 6, 2019 • Assets = $2.2 billion as of September 30, 2019 • 40 locations across south Louisiana and western Mississippi • Ow
Slide 4: Earnings
4 Earnings Net Income ($ millions) Diluted EPS $21.3 $9.2 $7.3 $9.9 $12.6 $16. 0 $16.8 $31.6 $0 $5 $10 $15 $20 $25 $30 $35 2012 2013 2014 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 $2.32 $1.28 $1.06 $1.42 $1.79 $2.25 $2.28 $3.40 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 2012 2013 2014 2015 201
Slide 5: Profitability Peer Data
5 Profitability Peer Data (1,2) Return on Average Assets Return on Average Equity Return on Tangible Common Equity Efficiency Ratio (1) See appendix for reconciliation of Non - GAAP items (2) Peers and peer data are publicly owned banks with $1 - $3 billion in assets as of June 30, 2019. Source: S&P
Slide 6: Quarterly Financial Highlights
6 Quarterly Financial Highlights (1,2) 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 GAAP Net Income Basis: Reported Net Income ($000's) $8,262 $8,089 $7,890 $6,580 $6,856 Diluted EPS $0.89 $0.87 $0.85 $0.71 $0.75 ROA 1.53% 1.50% 1.48% 1.20% 1.23% ROE 11.2% 10.7% 10.5% 8.5% 8.6% ROATCE (1) 15.1% 14.4% 13.
Slide 7: Amidst the Louisiana Downturn
7 Amidst the Louisiana Downturn ALLL % NPAs (in millions) Annualized Net Charge Offs • Built reserves for potential losses due to challenges in Louisiana and Mississippi markets • $1.3MM of surplus bank - owned properties transferred into OREO in 3 rd quarter 2019 • Direct energy exposure (as of Sep
Slide 8: Credit Quality Trends
8 Credit Quality Trends NPAs / Assets Net Charge Offs / YTD Average Loans Loans Past Due ALLL / NPAs * Net Charge offs are annualized as of September 2019 1.10% 0.73% 1.07% 1.16% 1.21% 1.24% 0.46% 0.37% 0.84% 1.01% 0.72% 0.63% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 2014 2015 2016 2017 2018
Slide 9: HBCP Stock Performance
9 HBCP Stock Performance (as of November 6, 2019) % Price change since 2008 % Price change – 2 years -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% N-17 D-17 J-18 F-18 M-18 A-18 M-18 J-18 J-18 A-18 S-18 O-18 N-18 D-18 J-19 F-19 M-19 A-19 M-19 J-19 J-19 A-19 S-19 O-19 N-19 HBCP KBW Bank S&P 500 Bank
Slide 10: Challenges Yield Opportunities
10 Challenges Yield Opportunities Acquired Bank Date Assets ($ in MM) (at completion) % of TBV (at announcement) # of Branches Consideration Statewide Bank Mar - 2010 $199 FDIC - assisted 6 All Cash Guaranty Savings Bank Jul – 2011 257 95% 5 All Cash Britton & Koontz Bank Feb – 2014 301 90% 8 All Ca
Slide 11: Steady Organic Loan Growth
11 Steady Organic Loan Growth (excludes acquisition accounting) 0% 7% 24% 13% 18% 19% 11% 12% 6% 16% 15% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sep-19 Loan Balance Outstanding ($000s) Origin
Slide 12: Loan Portfolio
12 Loan Portfolio (as of September 30, 2019) Composition Market Diversification Balance = $1.7 billion, 77% of assets 3Q 2019 Yield = 5.46% CRE 45% 1 - 4 Mortgage 25% C&D 11% C&I 11% Home Equity 5% Consumer 3% Acadiana 45% New Orleans 29% Northshore 13% Baton Rouge 10% Mississippi 2% Other 1%
Slide 13: Loan Portfolio
13 Loan Portfolio (as of September 30, 2019) CRE & Multifamily 1 - 4 Family Construction & Land $776 million Owner Occupied = 51% 3Q 2019 yield = 5.32% $189 million 3Q 2019 yield = 6.23% $433 million 73% Fixed Acquired Balance = 44 % Office Building , 27% Medical , 14% Shopping Center , 10% Retail ,
Slide 14: Deposits
14 Deposits (as of September 30, 2019) Louisiana Market Share (1) Bank 2019 Rank Deposits Market Share Capital One 1 18,035,846 17.0 JP Morgan Chase 2 17,511,399 16.5 Hancock Whitney 3 14,716,915 13.8 Iberiabank 4 8,971,115 8.4 Regions 5 7,461,201 7.0 Origin 6 1,811,267 1.7 Business First Bank 7 1,6
Slide 15: Interest Rate Risk
15 Interest Rate Risk (1) NIM (TE) Loan Yield Cost of Interest - Bearing Liabilities - 100 +100 Forward Curve - 2.5% 0.8% - 0.4% 1 Year Change in Net Interest Income (as of September 30, 2019) • 3 rd quarter loan yield and NIM negatively impacted by $680,000 write - off of the Company’s FDIC loss sh
Slide 16: Non-Interest Income & Expense
16 Non - Interest Income & Expense (1,2) Non - Interest Income / Average Assets Non - Interest Expense / Average Assets • Leveraged expense base through acquisitions and organic growth • Continued back office and infrastructure investments provide ability for continued expansion (1) See appendix for
Slide 17: HBCP – Dividends and Buybacks
17 HBCP – Dividends and Buybacks • Activity in 2019 • Purchased 396,565 shares • Average Price = $ 36.70 • $ 14.6 million cash deployed • Completed 2016 repurchase program • New share repurchase program announced August 28, 2019 • 470,000 shares authorized under new plan (approximately 5.0% of curre
Slide 18: Investment Perspective
INVESTMENT PERSPECTIVE 18 Strong earnings and shareholder returns Conservative, well - managed credit culture Market disruption creates new opportunities Well capitalized with capacity for continued growth Bank capital ratios as of September 30, 2019 Tier 1 leverage capital = 11.1% Total risk based
Slide 19: Growing. Investing. Serving.
GROWING. INVESTING. SERVING. Home Bancorp, Inc. is a Louisiana corporation and the holding company for Home Bank, N.A., a national bank headquartered in Lafayette, Louisiana. Home Bank offers a full range of deposit and loan products through convenient banking centers in growing regions of South Lou
Slide 20: Appendix Non-GAAP Reconciliation
20 Appendix Non - GAAP Reconciliation (dollars in thousands) 2014 2015 2016 2017 2018 Sep - 19 YTD Total Shareholders' Equity $154,144 $165,046 $179,843 $277,871 $304,040 $314,677 Less: Intangible assets 4,266 15,304 12,762 68,034 66,055 64,854 Non - GAAP tangible shareholders' equity $149,878 $149,
Slide 21: Appendix Non-GAAP Reconciliation
21 Appendix Non - GAAP Reconciliation (dollars in thousands) 2014 2015 2016 2017 2018 Sep - 19 YTD Reported non - interest income $8,175 $8,770 $11,157 $9,962 $13,447 $10,916 Less: BOLI benefit - - - - - 1,195 Less: Gain (loss) on sale of assets - - 641 (69) - (347) Non - GAAP non - interest income
Slide 22: Appendix Non-GAAP Reconciliation
22 Appendix Non - GAAP Reconciliation (dollars in thousands except per share data) 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 Total Shareholders' Equity $295,688 $304,040 $308,935 $313,494 $314,677 Less: Intangibles 66,493 66,055 65,645 65,247 64,854 Non - GAAP tangible shareholders' equity $229,195 $2
Slide 23: Appendix Non-GAAP Reconciliation
23 Appendix Non - GAAP Reconciliation (dollars in thousands except per share data) 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 Reported Net Income $8,262 $8,089 $7,890 $6,580 $6,856 Add: Write - off of FDIC loss sharing indemnification asset, net of tax - - - - 537 Less: Gain (loss) on sale of assets, n
Home Bancorp — Sandler O'Neill + Partners 2019 East Coast Financial Services Conference on 6ix