Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Q2 2024 Earnings Presentation
27 slides from Home Bancorp's earnings presentation, Jul 18, 2024
Slide 1: Q2 2024 Investor Presentation
Q2 2024 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: $3.4B • Total Assets: $3.4 billion at June
Slide 4: Our Markets
Our Markets eta LAFAYETTE Greater Acadiana Region TOTAL BRANCHES: 13 BATON ROUGE TOTAL BRANCHES: 4 NORTHSHORE HOUSTON TOTAL BRANCHES: 5 COMMERCIAL BANKING OFFICE: 1 NATCHEZ TOTAL BRANCHES: 3 NEW ORLEANS TOTAL BRANCHES: 6 NEW ORLEANS 9 we NORTHSHORE TOTAL BRANCHES: 6 SOUTHWEST ACADIANA TOTAL BRANCHES
Slide 5: Quarterly Financial Highlights
Quarterly Financial Highlights (dollars in thousands, except per share data) 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Profitability Net income $ 11,320 $ 9,781 $ 9,754 $ 9,385 $ 9,199 $ 8,118 Diluted EPS 1.39 1.21 1.22 1.17 1.14 1.02 ROA 1.43 % 1.21 % 1.18 % 1.13 % 1.11 % 0.97 % ROE 13.5 11.3
Slide 6: Asset Growth
Asset Growth 4,000 Texan Bank - CAGR = 12.8% $416 MM as of June 30, 2024 3,500 St. Martin Bank & Trust - $597 MM 3,000 Bank of New Orleans - Home Bank Total Assets ($ in millions) $346 MM 2,500 Britton & Koontz Bank - $301 MM Guaranty 2,000 Savings Bank - $257 MM 1,500 Statewide Bank - $199 MM 1,000
Slide 7: Profitability
(1) Profitability Return on Average Assets Return on Average Equity 2.0% 16.0% 1.8% 14.0% 1.6% 11.8 11.9 1.32 12.0% 1.4% 1.25 1.27 9.9 10.0% 9.3 9.5 1.2% 1.12 1.10 1.06 8.9 8.5 1.04 1.0% 8.0% 1.76 14.4 0.8% 6.0% 11.6 0.6% 1.27 1.23 10.2 10.0 1.07 1.11 4.0% 9.0 8.8 0.99 0.97 7.8 0.4% 0.2% 2.0% 0.0% 0
Slide 8: Loan Portfolio
Loan Portfolio (as of June 30, 2024) Composition Market Diversification Home Equity, 3% Consumer, 1% MS, 2% Multifamily, 5% Baton Rouge, 10% C&D, 12% CRE O.O., 25% Acadiana, 29% Northshore 14% 1-4 Mortgage, 17% C&I, 16% Houston, 18% New Orleans, 27% CRE N.O.O., 21% • Total loans - $2.7 billion • 2Q
Slide 9: Non-Owner Occupied CRE
Office Exposure Non-Owner Occupied CRE (as of June 30, 2024) Office Loans Average Office Healthcare, 2% Restaurant/Bar, 2% Total Loan Balance Medical Office, 3% $80.3 million or $1.2 million Other Specialty Use, 4% 3.0% of total loans Zero nonaccrual and criticized loans in Retail - Single Tenant, 5
Slide 10: C&D Portfolio
C&D Portfolio Composition (as of June 30, 2024) Lots, Development and Total Average Unimproved Land, Balance Balance 24% $328.9 million $554.4K Commercial 0.1% $782K Construction, 52% 1-4 Family Construction, 24% on Nonaccrual net charge-offs or $296.9K since 2009 Historic Charge-off (Recovery Rate)
Slide 11: Changes in ALL
Changes in ALL 2021 2022 2023 2024 $40 $2.3 $1.4 $3.7 $30 $3.8 $(0.1) $(0.7) ($ in millions) $(0.7) $1.4 $20 $31.5 $32.2 $29.3 $10 $21.1 $0 Dec 2021 Allowance Provision Organic Net Dec 2022 Organic Net Dec 2023 Organic Net Jun 2024 for Texan for Texan Provision Charge- Provision Charge- Provision Ch
Slide 12: Credit Quality Trends
Credit Quality Trends NPAs / Assets ALL / NPAs 1.6% 350% 1.4% 1.30 1.21 300% 1.16 1.2% 267 304 250% 1.0% 1.01 0.77 200% 165 189 0.8% 0.6% 0.50 150% 0.72 0.75 0.49 0.34 100% 146 0.4% 0.31 0.2% 0.40 0.37 50% 0.28 57 63 63 0.0% 0.14 0.20 0% 2017 2018 2019 2020 2021 2022 2023 Jun-24 2017 2018 2019 2020
Slide 13: Investment Portfolio
Investment Portfolio 12% 2.4% of total assets Q2 yield (dollars in millions) Book Value Gain/(loss) Eff. Duration $46.6 million 99.7% MBS $205 $(25) 4.6 unrealized loss ~ AFS CMBS 156 (11) 2.8 10.1% of book value Muni 55 (8) 6.3 CMO 18 (1) 3.7 Agency 19 (1) 2.9 $34,000 $9.4 million Corp 7 (1) 1.4 MV
Slide 14: Deposits
Deposits (as of June 30, 2024) $32,860 $2,800 11% 11% 11% 11% 12% 9% 8% Average deposit size 15% 15% 15% 15% 16% 17% 16% $2,400 17% 13% 13% 22% 24% 26% $ in millions 20% 27% 31% 25% Non-interest bearing 29% 24% 27% 28% 23% $2,000 deposit composition 28% 30% 34% 28% 25% 24% 27% $1,600 2018 2019 2020
Slide 15: Deposits
Deposits (as of June 30, 2024) Uninsured Deposits(1) Retail Business Public Broker Total FDIC Insured 46% 18% —% —% 64% Approximately $602 million or 22% of total deposits Uninsured (1) 7 15 — — 22 Reciprocal — 4 — — 4 Public Funds — — 8 — 8 Coverage of Brokered Deposits — — — 2 2 Uninsured Deposits
Slide 16: Yields
Yields NIM (TE) Quarter Month 4.80% NIM 1.94% 4.40% 4.38 4.18 3.66% Cost of total deposits for 4.11 the quarter ended June for the quarter ended 4.00% 3.94 2024 3.76 3.75 3.69 June 2024 3.64 3.66 3.64 3.66 3.69 3.60% $135 million borrowing under Federal Reserve BTFP at a cost of 4.76% and $45 millio
Slide 17: Interest Rate Risk
Interest Rate Risk Liability Betas Forecasted Change in NII 5.00% Rate Shock 1 Year % Change in NII 4.00% 200 1.7% 3.00% 100 1.0% 2.00% (100) (1.6)% 1.00% (200) (3.2)% —% 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-Q1-Q2-Q3-Q4-Q1-Q2- 16 16 16 16 17 17 17 17 18
Slide 18: Noninterest Income & Expense
Noninterest Income & Expense 2Q 3Q 4Q 1Q 2Q Noninterest Income(1) / Assets (dollars in thousands) 2023 2023 2023 2024 2024 0.65% 0.62 Service fees and charges $ 1,230 $ 1,277 $ 1,235 $ 1,254 $ 1,239 0.62 0.62 Bank card fees 1,715 1,903 1,646 1,575 1,751 0.60% 0.57 Gain on sale of loans 26 687 46 87
Slide 19: Capital
Capital Dividends Per Share Share Repurchase Activity $1.50 Average *payable in August 2024 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 $0.75 2020 530,504 26.41 14,011,605 $0.50 $0.41 $0.55 * 2021 246,012 3
Slide 20: Capital
Capital Capital Ratios (Bank only) 20% 15.9 15.2 14.7 15% 13.9 14.2 14.4 14.4 13.6 13.2 13.2 12.4 13.0 11.0 11.2 11.2 10.4 9.7 9.8 10% 5% 0% 2020 2021 2022 2023 1Q 2024 2Q 2024 Tier 1 leverage capital Common equity tier 1 Total risk-based capital Regulatory Capital and Adjusted Capital as of 6/30/20
Slide 21: 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 Home ff Bancorp Inc. | 21 oO
Slide 22: 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. | 22
Slide 23: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands, except per share data) 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Total shareholders' equity $ 345,100 $ 346,117 $ 345,332 $ 367,444 $ 372,285 $ 375,830 Less: intangible assets 87,527 87,138 86,749 86,372 86,019 85,690 Non-GAAP tangible
Slide 24: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands) 2019 2020 2021 2022 2023 Jun-24 YTD Total shareholders' equity $ 316,329 $ 321,842 $ 351,903 $ 329,954 $ 367,444 $ 375,830 Less: intangible assets 64,472 63,112 61,949 87,973 86,372 85,690 Non-GAAP tangible shareholders' equity $ 251,857 $ 25
Slide 25: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands) 2019 2020 2021 2022 2023 Jun-24 YTD Reported noninterest income $ 14,415 $ 14,305 $ 16,271 $ 13,885 $ 14,636 $ 7,304 Less: BOLI benefit 1,194 — 1,717 — — — Less: gain (loss) on sale of securities — — — — (249) — Less: gain (loss) on sale of a
Slide 26: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands except for per share data) ) 2018 2019 2020 2021 1Q2022 2022 2023 1Q2024 Jun-24 YTD Total shareholders' equity $ 304,040 $ 316,329 $ 321,842 $ 351,903 $ 337,504 $ 329,954 $ 367,444 $ 372,285 $ 375,830 Less: intangible assets 66,055 64,472 63,1
Slide 27: In Tune
IN “TUNE In 2023, we sharpened our focus on the changing rate environment and established ourselves as a preferred community bank in each market we serve. Providing exceptional service and care, we remained in tune to the needs of customers and our dedicated employees, all while celebrating a milest