Slide 1: 1st Quarter 2015 Investor Presentation
May 2015 1 st Quarter 2015 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 hereunder). Forward looking statements are not historical facts but instead represent only the beliefs, expectations or o
Slide 3: Our Company
Our Company 3 • Headquartered in Lafayette, Louisiana • National Bank Charter – Converted from Federal Savings Bank in 2015 • IPO completed in October 2008 • Ticker symbol: HBCP (NASDAQ Global) • Assets = $1.2 billion as of March 31, 2015 • Market Cap = $157 MM
Slide 4: Quarterly Results
Quarterly Results 4 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 Reported Net Income $ 1,433,456 $2,752,625 $ 2,876,517 $2,808,990 $2,847,764 Merger Adjusted Net Income (1) $ 2,790,488 $ 2,889,045 $ 2,879,900 $2,808,990 $2,847,764 EPS - Diluted (1) $0.40 $ 0.43 $ 0.41 $0.40 $0.41 ROA (1) 1.00% 0.93% 0.93
Slide 5: Significant Asset Growth Since IPO
Significant Asset Growth Since IPO 5 134% asset increase CAGR = 14.5% Statewide Bank • March 2010 • FDIC - a ssisted • Northshore/New Orleans • Assets - $199MM • Cash Deal Guaranty Savings Bank • July 2011 • New Orleans • Assets - $257MM • Cash Deal @ 95% of book value Britton & Koontz Bank • Februa
Slide 6: Strong Organic Loan Growth
Strong Organic Loan Growth (excludes acquisition accounting discounts ) Originated Loan CAGR = 13% 6
Slide 7: Favorable Balance Sheet Mix Change
Favorable Balance Sheet Mix Change (% of assets) 7 2008 2009 2010 2011 2012 2013 2014 1Q 2015 Cash & Equivalents 9% 5% 6% 4% 4% 4% 3 % 3 % Investments 22% 23% 18% 16% 17% 16% 15% 15% Total Loans net 63% 64% 63% 69% 70% 71% 74% 74% Other Assets 6% 8% 13% 11% 9% 9% 8% 8% Non Maturity Deposits 38% 41%
Slide 8: Market Diversification as of March 31, 2015
8 In 2008, virtually 100% of Home Bank loans and deposits were located in Lafayette Market. Market Diversification as of March 31, 2015 Loans Deposits
Slide 9: Direct Energy Exposure as of March 31, 2015
Direct Energy Exposure as of March 31, 2015 9 C&D $160 $0 $160 C&I 17,049 8,326 25,376 CRE 13,759 263 14,023 Total Balance $30,969 $8,590 $39,558 % of Total Loans 3.4% 0.9% 4.3% Average Loan Balance $413,000 CRE - Average LTV 46% Substandard Loan Balance $725,000 Outstanding Balance Unfunded Commitm
Slide 10: Louisiana Industries
Louisiana Industries 10 • Business climate ranked #1 by Business Facilities magazine and #2 by Site Selection magazine • Lowest tax burden in the U.S. for new manufacturing firms • Best workforce training program five years running Trade, transportation, and utilities 17% 20% 21% 20% Government 18%
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition 11 12/31/08 balance: $336 million 3/31/15 balance: $922 million
Slide 12: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio 12 3/31/15 balance: $355 million
Slide 13: C&I Portfolio
C&I Portfolio 13 3/31/15 balance: $112 million
Slide 14: Construction and Land Portfolio
Construction and Land Portfolio 14 3/31/15 balance: $89 million
Slide 15: Family First Mortgage Portfolio
1 - 4 Family First Mortgage Portfolio • Decline in overall loan composition since 2008 – 41% in 2008 – 25% in 1Q 2015 • Limited exposure to 30 year fixed rate mortgages – $56MM, or 6%, of total loans as of 1Q 2015 15 3/31/15 balance: $234 million
Slide 16: Non Performing Assets / Assets
Non Performing Assets / Assets • Originated NPAs historically low • Credit discounts on acquired loans • NPA reduction is a primary goal 16 Peer = BHCs $1 - $3 billion in assets. Peer data as of 12/31/2014. Source: ffiec.gov
Slide 17: Credit Coverage
• Credit discount on acquired loans = 11.3% of outstanding balance 17 Credit Coverage
Slide 18: Investment Portfolio
• $185 MM, or 15% of Assets • 2.4 Year Effective Duration • 2.18% TE Yield in 1 st Q 2015 • 25% of investments are variable rate 18 Investment Portfolio Current +100 +200 +300 Market Value / Book 1.5% -1.3% -4.2% -7.2% Avg Life / Reprice Term 2.8 3.2 3.5 3.8 Avg Life 3.8 4.3 4.6 4.9
Slide 19: Interest Rate Risk
Interest Rate Risk Change in Interest Rates (1) % Change in NII at 3/31/15 (2) +100 0.4% +200 0.5% +300 0.4% 19 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 20: Deposit Growth and Composition
Deposit Growth and Composition 20 2008 1Q 2015 Change DDA 19% 27% 8% NOW 12% 22% 10% MMDA 19% 22% 2% CD 44% 21% -23% Savings 6% 8% 3% Deposit Composition • Favorable mix change while growing total deposits • 1Q 2015 cost on interest - bearing deposits = 0.37% • 75 th percentile in non interest depos
Slide 21: Net Interest Margin (TE)
Net Interest Margin (TE) 21 Outperformed peers by 92 basis points
Slide 22: Net Interest Margin Drivers
Net Interest Margin Drivers • Favorable asset mix – Loans = 74% of assets (75 th percentile) – Investments = 15% of assets (35 th percentile) • Loan yield of 5.59% in 2014 (87 th percentile) – Loan discount accretion – Higher concentration in construction loans 22 • Maintained lower costs than peers
Slide 23: Non-Interest Income
Non - Interest Income • New Retail and Mortgage leadership in 2014 • Restructured commercial and retail incentive plans to focus on new account acquisition 23 1Q 2015 Composition Lagged peers by 21 basis points
Slide 24: Non-Interest Expense
Non - Interest Expense • Infrastructure for continued growth • Investments in commercial bankers across footprint • Significant efficiencies in 2014 from B&K acquisition 24 1Q 2015 Composition Lagged peers by 18 basis points (1) Excludes merger - related costs (see Table 2 in appendix)
Slide 25: HBCP Ownership
HBCP Ownership 25 Source: SNL (data reported through 4/27/2015) Top Institutional Holders Ownership % Firefly Value Partners LP 8.3% Jacobs Asset Management LLC 8.1% FJ Capital Management LLC 7.0% Fully Diluted Insider Ownership = 27%
Slide 26: Total Return Since 2008
Total Return Since 2008 26 Source: SNL. Data as of 04/27/2015
Slide 27: Share Information
Share Information 27 2Q 2014 3Q 2014 4Q 2014 1Q 2015 12 Months EPS – GAAP $0.40 $0.41 $0.40 $0.41 $1.62 EPS – Merger Adjusted (1) $0.43 $0.41 $0.40 $0.41 $1.65 Ending Share Price $22.02 $22.71 $22.94 $21.27 Dividend Yield 0.0% 0.0% 1.2% 1.3% P/ BV 106% 107% 106% 97% P/TBV 109% 110% 109% 100% Home Ba
Slide 28: Tangible Common Equity Ratio
Tangible Common Equity Ratio 28
Slide 29: Capital Deployment Strategy
Capital Deployment Strategy • Acquisitions – Prior acquisitions have been all cash transactions • Immediate ROE and EPS Impact (excluding merger costs) • Organic loan growth – Strong organic growth, offset partially by runoff in problem assets from acquired institutions 29 (1) Excludes merger relate
Slide 30: Capital Deployment Strategy
Capital Deployment Strategy • Share Repurchases (22% of IPO shares repurchased) – Buyback plan has approx. 70,000 shares remaining • Cash Dividends – Announced company’s first dividend in 4 th Q 2014 30
Slide 31: Investment Perspective
Investment Perspective • Consistently superior organic asset quality • Deep customer relationships – 107 years • Successful acquirer; experienced deal team • Strong capital base – Disciplined deployment – Well positioned for further acquisitions • Low direct energy exposure • Trading at 100% of tang
Slide 32: Executive Leadership
Executive Leadership 32 Jason Freyou, Chief Operations Officer Joined Home Bank in 2015. Previously served as Chief Operations Officer for Teche Federal Bank. Darren Guidry, Chief Credit Officer Joined Home Bank in 1993. Previously served as Chief Lending Officer. Scott Ridley, Chief Banking Officer
Slide 33: Appendix Non-GAAP Reconciliation
Appendix Non - GAAP Reconciliation 33 (dollars in thousands) 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 Reported non-interest expense 8,774$ 11,257$ 10,370$ 9,968$ 10,176$ 9,719$ Less: Merger-related expenses (307) (1,955) (207) (124) - - Non-GAAP non-interest expense 8,467$ 9,302$ 10,163$ 9,84
Slide 34: Home Bancorp Inc.
Home fi Bancorp Inc.