Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Raymond James U.S. Bank Conference 2017
27 slides from Home Bancorp's conference presentation, Sep 6, 2017
Slide 1: Raymond James U.S. Bank Conference September 6, 2017
Raymond James U.S. Bank Conference September 6, 2017
Slide 2: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS This presentation contains certain forward - looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Forward - looking statements do not relate strictly to historical or current facts. Forwa
Slide 3: Additional Information Regarding The Merger
Additional Information Regarding The Merger Home Bancorp intends to file with the SEC a Registration Statement on Form S - 4 relating to its proposed merger with St. Martin Bancshares, Inc., which will include a prospectus for the issuance of shares of Home Bancorp’s common stock in the merger as we
Slide 4: Our Company
Home Bank (28 locations) St. Martin Bank & Trust (12 locations) Branch Locations Our Company ▪ Headquartered in Lafayette, Louisiana ▪ Founded in 1908 ▪ IPO completed in October 2008 ▪ Ticker symbol: HBCP (NASDAQ Global) ▪ Market Cap = $299 MM as of August 30, 2017 ▪ Added to Russell 3000 Index in 2
Slide 5: Consistent Growth in Shareholder Return Driven by EPS Growth
Consistent Growth in Shareholder Return Driven by EPS Growth $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 EPS Price per Share Reported Diluted EPS HBCP Stock Price 5
Slide 6: Quarterly Financial Highlights
Quarterly Financial Highlights 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 GAAP Net Income Basis: Reported Net Income ($000’s) $4,016 $4,360 $4,282 $5,006 $4,486 Diluted EPS $0.57 $0.61 $0.60 $0.69 $0.62 ROA 1.04% 1.14% 1.11% 1.28% 1.15% ROE 9.4% 9.9% 9.6% 10.9% 9.6% ROATCE (1) 10.6% 11.0% 10.6% 12.0% 1
Slide 7: Disciplined Acquirer since IPO
Disciplined Acquirer since IPO 300,000 600,000 900,000 1,200,000 1,500,000 1,800,000 2,100,000 2,400,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 Pro Forma - June 2017 Home Bank Total Assets ($000s) St. Martin Bank & Trust (1) Statewide Bank Britton & Koontz Bank Bank of New Orleans CAGR = 17% G
Slide 8: Effective Balance Sheet Management
Effective Balance Sheet Management % of total assets ▪ Steady organic loan growth ▪ Relatively small investment portfolio ▪ Core deposit growth has offset capital deployment and borrowings (1) Excludes loans held for sale 2009 2010 2011 2012 2013 2014 2015 2016 2Q 2017 Cash and Equivalents 5% 6% 4%
Slide 9: Steady Organic Loan Growth
$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2Q 2017 Loan Balance Outstanding ($000's) Total Originated Statewide GSB B&K BNO Steady Organic Loan Growth Organic Loan CAGR = 12.5% (excludes acquisition accounting adjustments) 9
Slide 10: Non Performing Assets / Assets
Non Performing Assets / Assets 0.3% 0.3% 0.2% 0.4% 0.5% 0.7% 0.5% 0.4% 0.9% 0.9% 0.8% 1.2% 1.1% 1.2% 0.6% 0.4% 0.2% 0.1% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2Q 2017 Originated Acquired Peer Median Peers throughout presentation = BHCs $1 - $3 billion in ass
Slide 11: Credit Quality
Credit Quality ▪ Low net charge offs ▪ Increased ALLL on originated loans due primarily to the potential direct and indirect impact of continued low energy prices ▪ ALLL does not include credit discounts on acquired loans 0.78% 0.85% 0.94% 0.99% 1.02% 1.05% 1.07% 1.15% 1.20% 1.33% 1.36% 1.38% 1.38%
Slide 12: Net Interest Margin (TE)
Net Interest Margin (TE) 4.38% 3.61% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% 5.00% 2008 2009 2010 2011 2012 2013 2014 2015 2016 June 2017 YTD Home Bank Peer Median 0.77% Spread ▪ Continually higher NIM than peers ▪ Yield on earning assets = 4.78% (91 st percentile) ▪ Net loans represent 77%
Slide 13: Non Interest Income & Expense
2.77% 2.85% 2.60% 2.70% 2.80% 2.90% 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% 3.60% 2008 2009 2010 2011 2012 2013 2014 2015 2016 June 2017 YTD NIE / Avg. Assets Peer Median Home Bancorp Average gap = 0.41% Non Interest Income & Expense (1) 0.82% 0.65% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 2008 2009 20
Slide 14: Stronger Together
pee a. eet STRONGER TOGETHER.
Slide 15: Transaction Rationale
Transaction Rationale ▪ Strategic merger creates the 3 rd largest bank headquartered in Louisiana with $2.2 billion in assets as of June 30, 2017 ▪ Robust earnings accretion expected ▪ Over 20% accretive to earnings per share once full efficiencies are realized ▪ Estimated tangible book value diluti
Slide 16: Transaction Terms and Key Assumptions
Transaction Terms and Key Assumptions ▪ Approximately 80% Stock, 20% Cash (1) ▪ Approximately 1,927,000 new HBCP shares to be issued (2) Consideration Transaction Value ▪ Aggregate Value = $ 96.1 million (1,2,3) ▪ $457.47 per share (1,2) Valuation Multiples ▪ Aggregate Value / Tangible Book Value =
Slide 17: St. Martin Bank & Trust Overview
▪ Headquartered in St. Martinville , Louisiana ▪ Founded in 1933 ▪ 12 branches ▪ Consistently generates outstanding returns ($ in 000s) 2014 (3) 2015 2016 June 2017 YTD Assets $525,828 $538,493 $580,430 $596,448 Gross Loans 395,689 419,051 443,002 455,456 Deposits 458,735 462,938 496,345 509,766 Tie
Slide 18: Branch Locations
Home Bank (28 locations) St. Martin Bank & Trust (12 locations) Branch Locations Locations Lafayette 18
Slide 19: Pro Forma Loan Composition
Pro Forma Loan Composition St. Martin Bank & Trust (1) Home Bank CRE 36% 1 - 4 Family 32% Agricultural 9% C&D 8% C&I 8% Consumer & Other 6% Home Equity 1% Pro Forma Total Loans: $455 million Yield on Loans: 5.89% Net Loans / Assets = 75% Total Loans: $1.7 billion Net Loans / Assets = 76% Total Loans
Slide 20: Energy & Agricultural Loan Exposure
▪ Outstanding balance = $33.4 million, or 2.7% of loans ▪ Unfunded commitments = $5.0 million ▪ 95% of loans are performing in accordance with original terms ▪ 5% of loans paying in accordance with restructured terms ▪ ALLL / Energy - related loans = 3.4% Energy & Agricultural Loan Exposure ▪ Outsta
Slide 21: Pro Forma Deposit Composition
Pro Forma Deposit Composition Int Bearing NMD 48% Non Interest 34% Retail CDs 15% Jumbo CDs 3% St. Martin Bank & Trust (1) Int Bearing NMD 54% Non Interest 23% Retail CDs 20% Jumbo CDs 3% Home Bank Int Bearing NMD 52% Non Interest 26% Retail CDs 19% Jumbo CDs 3% Pro Forma Total Deposits: $510 millio
Slide 22: Combined Deposit Market Share
Combined Deposit Market Share (1) Bank 2016 Rank Deposits in Market ($000) Branches Deposit Market Share (%) Iberiabank 1 $2,891,414 19 26.6 JP Morgan Chase 2 1,360,147 18 12.5 Home Bank – Pro Forma 3 1,020,517 18 9.4 Capital One 4 737,200 9 6.8 MidSouth Bank 5 664,990 17 6.1 Whitney Bank 6 624,284
Slide 23: Share Information – Home Bancorp, Inc.
Share Information – Home Bancorp, Inc. 3Q 2016 4Q 2016 1Q 2017 2Q 2017 12 Months Diluted EPS (GAAP) $0.61 $0.60 $0.69 $0.62 $2.52 Adjusted Diluted EPS (Non - GAAP) (1) $0.61 $0.60 $0.66 $0.66 $2.53 Ending Share Price $28.00 $38.61 $33.75 $42.52 Dividend Yield 1.4% 1.2% 1.5% 1.3% P/ BV 116% 158% 135%
Slide 24: Non-GAAP Reconciliation – St. Martin Bank & Trust
2014 2015 2016 June 2017 – YTD (2) Reported net income $11,688 $12,764 $13,015 $6,391 Less: Taxes (1) 4,091 4,467 4,555 2,237 Non - GAAP net income $7,597 $8,297 $8,460 $4,154 Return on Assets - GAAP 2.49% 2.39% 2.32% 2.17% Less: Effect of taxes 0.87% 0.84% 0.81% 0.76% Non - GAAP Return on Assets 1.
Slide 25: Non-GAAP Reconciliation – Home Bancorp, Inc.
Appendix Non - GAAP Reconciliation – Home Bancorp, Inc. (dollars in thousands) 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 Total Shareholders' Equity $173,567 $177,362 $179,843 $184,720 $188,939 Less: Intangibles 13,524 12,956 12,762 12,577 12,403 Non - GAAP tangible shareholders' equity $160,043 $164,4
Slide 26: Non-GAAP Reconciliation – Home Bancorp, Inc.
Appendix Non - GAAP Reconciliation – Home Bancorp, Inc. (dollars in thousands) 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 Reported non - interest expense $11,856 $10,643 $11,957 $11,031 $11,051 Less: Merger - related expenses 214 - - - - Non - GAAP non - interest expense $11,642 $10,643 $11,957 $11,031
Slide 27: Home Bancorp, Inc.
Home ff Bancorp,Inc. Good for business. Good for life.
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