Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Raymond James U.S. Bank Conference 2014
39 slides from Home Bancorp's conference presentation, Sep 3, 2014
Slide 1: Home Bancorp, Inc.
Home Bancorp, Inc. Raymond James U.S. Bank Conference September 3, 2014
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 Bank chartered in 1908 – 106 years strong Headquartered in Lafayette, Louisiana Federal Savings Bank Charter IPO completed in October 2008 Ticker symbol: HBCP (Nasdaq Global) Total Assets $1.3 billion Market Capitalization $154 million Branches 27 Employees (FTE) 317
Slide 4: Significant Asset Growth Since IPO
Significant Asset Growth Since IPO 1,400,000 1,300,000 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 2008 2009 2010 2011 2012 2013 2Q 2014 BK Bank Britton&Koontz Guaranty Savings Bank Statewide Bank 138% asset increase CAGR = 17% Total Assets ($000’s)
Slide 5: Acquisitions
Acquisitions Britton & Koontz Bank – February 2014 – Baton Rouge, Natchez & Vicksburg, Mississippi – Cash Deal @ 88% of book value $301 MM Assets, $170MM Loans, $216MM Deposits Guaranty Savings Bank – July 2011 – Greater New Orleans – Cash Deal @ 95% of book value $257 MM Assets, $184MM Loans, $193M
Slide 6: Tangible Common Equity Ratio
Tangible Common Equity Ratio 28% 25% 23% 20% 18% 15% 13% 10% 8% 5% 3% 0% 2008 2009 2010 2011 2012 2013 2Q 2014 24.0% 25.3% 18.6% 13.7% 14.5% 14.3% 11.4% 8.6% Home Bancorp Peer Median Peer = BHCs $1-$3 billion in assets. Peer data as of 3/31/2014. Source: ffiec.gov
Slide 7: Share Repurchase Activity
Share Repurchase Activity 2,000,000 1,800,000 21% of IPO shares repurchased 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 2009 2010 2011 2012 2013 2014 Yearly Cumulative # of Shares Repurchased
Slide 8: Favorable Balance Sheet Mix Change
Favorable Balance Sheet Mix Change (% of assets) Strong organic loan growth 2008 2009 2010 2011 2012 2013 2Q 2014 Cash & Equivalents 9% 5% 6% 4% 4% 4% 5% Investments 22% 23% 18% 16% 17% 16% 15% Total Loans net 63% 64% 63% 69% 70% 71% 72% Other Assets 6% 8% 13% 11% 9% 9% 8% Non Maturity Deposits 38%
Slide 9: Our Locations
Our Locations Arkansas Texas Louisiana Mississippi Source: snl.com
Slide 10: Unemployment Rate by Market
Unemployment Rate by Market June 2014 14% 12% 10% 8% 6% 4% 2% 0% Houma Lafayette Lake Charles Baton Rouge New Orleans Alexandria Monroe Shreveport Adams Warren National Average Sources: bls.gov, mdes.ms.gov Home Bancorp, Inc.
Slide 11: Lafayette Market
Lafayette Market % of Bank Totals 60% 50% 40% 30% 20% 10% 0% 51.4% Deposits 26.9% Loans 2013 Rank 1 2 3 4 5 Institution Iberiabank JP Morgan Home Bank Hancock Capital One Deposits in Market ($000) 1,634,275 1,053,938 489,351 487,052 469,405 Parish Market Share % 29.08 18.75 8.71 8.67 8.35 Source: sn
Slide 12: Baton Rouge Market
Baton Rouge Market % of Bank Totals 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 5.4% Deposits 18.7% Loans 2013 Rank 1 2 3 4 5 12 Institution JP Morgan Capital One Regions Hancock Iberiabank Home Bank Deposits in Market ($000) 6,770,803 2,660,497 1,444,723 1,365,528 555,857 73,660 Parish Market Share % 47
Slide 13: New Orleans/Northshore Market
New Orleans/Northshore Market % of Bank Totals 35% 30% 25% 20% 15% 10% 5% 0% 22.2% Deposits 32.9% Loans 2013 Rank 1 2 3 4 5 16 Institution Capital One Hancock JP Morgan Regions First NBC Home Bank Deposits in Market ($000) 10,390,696 4,927,007 4,707,911 2,380,213 2,289,444 228,476 Fed Market Share %
Slide 14: Western Mississippi Market
Western Mississippi Market Strong, stable deposit base 25% non-interest-bearing deposits Limited large bank competition Tuscaloosa Shale opportunity % of Bank Totals 25% 20% 15% 10% 5% 0% 19.5% Deposits 7.8% Loans Natchez 2013 Rank 1 2 3 4 Institution Home Bank United Miss. Regions Concordia Deposit
Slide 15: Tuscaloosa Marine Shale
Tuscaloosa Marine Shale ARKANSAS Minden MISSISSIPPI Shreveport Haynesville shale Jackson LOUISIANA Natchitoches Tuscaloosa Marine Shale TEXAS Alexandria 25 miles Baton Rouge Slidell Lafayette New Orleans THE TIMES-PICAYUNE
Slide 16: Market Diversification
Market Diversification June 30, 2014 Loans Other 3% Lafayette 27% Baton Rouge 19% North Shore 18% New Orleans 15% Mortgage 10% Mississippi 8% Deposits Other 2% Lafayette 51% Mississippi 20% North Shore 13% New Orleans 9% BR 5% In 2008, virtually 100% of loans and deposits were located in Lafayette M
Slide 17: Strong Organic Loan Growth
Strong Organic Loan Growth (excludes acquisition accounting discounts) $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Loan Balance Outstanding (000s) 2008 2009 2010 2011 2012 2013 Q1 2014 Q2 2014 Total Originated Covered GSB B&K
Slide 18: Loan Portfolio Composition
Loan Portfolio Composition Consumer 4% Multi-family 2% CRE 25% 1-4 Family 41% Const/Land 11% C&I 10% Home Equity 7% 12/31/08 balance: $336 million Consumer 5% Multi-family 2% CRE 37% 1-4 Family 25% Const/Land 14% C&I 11% Home Equity 6% 6/30/14 balance: $908 million
Slide 19: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Wholesale 2% School/Church 2% Other 3% Office Building 23% Medical 14% Shopping Center 9% Service Company 9% Restaurant 8% Convenience Store 8% Retail 7% Energy 4% Leasing 4% Hotel 4% Professional Service 3% 6/30/14 balance: $334 million Non-Owner Occupied 40% Owner
Slide 20: Construction and Land Portfolio
Construction and Land Portfolio Multifamily 5% Agricultural 1% Residential 28% Commercial Building 24% Land – Commercial 19% Medical 9% Land – Personal 7% Subdivision 7% 6/30/14 balance: $123 million Home Bancorp, Inc.
Slide 21: C&I Portfolio
C&I Portfolio Wholesale 16% Medical 16% Energy 12% Professional Services 11% Rental 7% Transportation 6% Construction 5% Retail 5% Real Estate 5% Agricultural 4% Hospitality 3% Manufacturing 3% Other 8% 6/30/14 balance: $97 million
Slide 22: 1-4 Family First Mortgage Portfolio
1-4 Family First Mortgage Portfolio Original Term 20 Year 4% 30 Year 64% 15 Year 20% 10 Year 12% Mortgage Portion Fixed 70% Adjustable 30% 1st Mrtg. Home Equity 41% Mortgage 59% 6/30/14 balance: $230 million Next Reset > 3 years 48% < 3 years 52%
Slide 23: Non Performing Assets / Assets
Non Performing Assets / Assets 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 0.2% 2006 0.3% 2007 0.3% 2008 0.3% 2009 3.1% 0.2% 2010 1.0% 1.8% 0.4% 2011 1.2% 1.3% 0.5% 2012 1.4% 0.9% 0.7% 2013 1.2% 0.5% 0.4% 2Q 2014 Originated Covered Acquired – Non Covered Peer Median
Slide 24: ALLL and Loan Discounts
ALLL and Loan Discounts Reported ALLL / Gross Loans = 0.85% – Peer Median = 1.40% Originated ALLL / Originated Loans 1.20% 1.10% 1.00% 0.90% 0.80% 0.70% 0.60% 0.50% 0.40% 2008 2009 2010 2011 2012 2013 2Q 2014
Slide 25: Deposit Growth and Composition
Deposit Growth and Composition Deposits ($000’s) 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - 2008 2009 2010 2011 2012 2013 Q2 2014 % Non Interest Bearing 30% 28% 26% 24% 22% 20% 18% 16% 14% Deposits % Non Interest 2Q 2014 Deposit Composition Savings 8% DDA 26% CD 24% MMDA 23% NOW 19% Non-i
Slide 26: Strong Non-Maturity Deposit Growth
Strong Non-Maturity Deposit Growth % of Assets 60% 50% 40% 30% 20% 10% 2008 2009 2010 2011 2012 2013 2Q 2014 Non Maturity Deposits CDs
Slide 27: Quarterly Performance Metrics
Quarterly Performance Metrics 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 Reported Net Income $1,243,591 $2,482,747 $1,705,649 $1,433,456 $2,752,625 Merger Adjusted Net Income (1) $1,243,591 $2,482,747 $1,905,406 $2,790,488 $2,889,045 EPS - Diluted (1) $0.18 $0.37 $0.28 $0.40 $0.42 ROA (1) 0.51% 1.04% 0
Slide 28: Net Interest Margin (TE)
Net Interest Margin (TE) 5.00% 4.75% 4.50% 4.25% 4.00% 3.75% 3.50% 3.25% 3.00% 2008 2009 2010 2011 2012 2013 YTD 6/30/14 Home Bank Peer Median
Slide 29: Net Interest Margin Drivers
Net Interest Margin Drivers Yield on Loans (TE) 8.00% 7.50% 7.00% 6.50% 6.00% 5.50% 5.00% 4.50% 4.00% 2008 2009 2010 2011 2012 2013 YTD 6/30/14 Strong loan/asset ratio (75th percentile) Loan discount balance and accretion C&D loans Cost of Funding Earnings Assets 3.00% 2.50% 2.00% 1.50% 1.00% 0.50%
Slide 30: Non-Interest Income
Non-Interest Income Non Interest Income / Average Assets 1.00% 0.90% 0.80% 0.70% 0.60% 0.50% 0.40% 2008 2009 2010 2011 2012 2013 YTD 6/30/14 Peer Median Home Bancorp New retail leadership Mortgage Brokerage 2014 YTD Non-Interest Income Discount of FDIC 4% Other 3% Service Fees 46% Bank Card Fees 26%
Slide 31: Non-Interest Expense
Non-Interest Expense (1) (excluding merger-related costs) Non Interest Expense / Average Assets 3.80% 3.60% 3.40% 3.20% 3.00% 2.80% 2.60% 2008 2009 2010 2011 2012 2013 YTD 6/30/2014 Peer Median Home Bancorp (1) Excludes merger-related costs (see Table 2 in appendix) Investments in commercial and ret
Slide 32: Interest Rate Risk
Interest Rate Risk Change in Interest Rates (1) % Change in NII at 6/30/14 (2) +100 -0.3% +200 -0.9% +300 -1.5% 1) Assumes 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 to: the Company’s abi
Slide 33: Total Return Since 2008
Total Return Since 2008 -50 -100 12/31/2008 12/31/2009 12/31/2010 12/31/2011 13/31/2012 12/31/2013 Total Return (%) HBCP SNL U.S. Bank and Thrift S&P 500 Source: SNL. Data as of 8/26/2014
Slide 34: Share Information
Share Information 3Q 2013 4Q 2013 1Q 2014 2Q 2014 12 Months EPS – GAAP $0.37 $0.25 $0.21 $0.40 $1.22 EPS – Merger Adjusted (1) $0.37 $0.28 $0.40 $0.42 $1.47 Ending Share Price $18.06 $18.85 $20.99 $22.02 Dividend Yield 0.0% 0.0% 0.0% 0.0% P/BV 91% 94% 103% 106% P/TBV 93% 96% 107% 109% Price / Earnin
Slide 35: HBCP Ownership
HBCP Ownership Other 36% Mutual Fund 7% Insider/ESOP 21% Institutional 36% Fully Diluted Insider Ownership = 26% Source: SNL (data as of 8/26/2014) Home HB Bancorp, Inc. 35
Slide 36: Investment Perspective
Investment Perspective • Consistently superior organic asset quality • Deep customer relationships – 106 years • Successful acquirer; experienced deal team • Strong capital base – Disciplined deployment – Well positioned for further acquisitions • Vibrant economies • Trading at 109% of tangible book
Slide 37: Executive Leadership
Executive Leadership John Bordelon, President and Chief Executive Officer Has led Home Bank since 1993. Previously served in various management and other positions since joining the Bank in 1981. Former Chairman of the following organizations: Greater Lafayette Chamber of Commerce, University of Lou
Slide 38: Appendix: Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation TABLE 1 (dollars in thousands) 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 Reported non-interest expense $8,094 $7,890 $8,774 $11,257 $10,370 Less: Merger-related expenses - - (307) (1,955) (207) Non-GAAP non-interest expense $8,094 $7,890 $8,467 $9,302 $10,163 Reported
Slide 39: Home Bancorp, Inc.
Home HB Bancorp, Inc.
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