Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Burkenroad Investment Conference 2018
26 slides from Home Bancorp's conference presentation, Apr 27, 2018
Slide 1: Burkenroad Investment Conference April 27, 2018
Burkenroad Investment Conference April 27, 2018
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 • Headquartered in Lafayette, Louisiana • Founded in 1908 • IPO completed October 2008 • Ticker symbol: HBCP (NASDAQ Global) • Market Cap = $ 412MM as of April 24, 2018 • Assets = $2.2 billion as of March 31, 2018 (third largest Louisiana - based bank) • 39 locations • Acquisition of Saint Martin
Slide 4: Disciplined Acquirer Since IPO
4 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 2,700,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q 2018 Total Assets ($000s) St. Martin Bank & Trust Statewide Bank Britton & Koontz Bank Bank of New Orleans CAGR = 17% Guaranty Sav
Slide 5: HBCP Stock Performance 12/31/2008 – 4/23/2018
HBCP Stock Performance 12/31/2008 – 4/23/2018 5 -50% 0% 50% 100% 150% 200% 250% 300% 350% 400% 450% D-08 M-09 J-09 S-09 D-09 M-10 J-10 S-10 D-10 M-11 J-11 S-11 D-11 M-12 J-12 S-12 D-12 M-13 J-13 S-13 D-13 M-14 J-14 S-14 D-14 M-15 J-15 S-15 D-15 M-16 J-16 S-16 D-16 M-17 J-17 S-17 D-17 M-18 HBCP DJIA
Slide 6: Profitability
70.5% 66.4% 63.6% 59.3% 60.0% 66.7% 64.1% 63.0% 57.9% 56.6% 50% 55% 60% 65% 70% 75% 2014 2015 2016 2017 1Q 2018 GAAP Non-GAAP Peer Median 6 Profitability (1,2) Return on Tangible Common Equity Efficiency Ratio Return on Average Assets Return on Average Equity 6.7% 7.8% 9.2% 8.6% 10.7% 7.7% 8.6% 9.3%
Slide 7: Quarterly Financial Highlights
7 Quarterly Financial Highlights 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 GAAP Net Income Basis: Reported Net Income ($000’s) $5,006 $4,486 $4,090 $3,242 $7,464 Diluted EPS $0.69 $0.62 $0.56 $ 0.41 $0.81 ROA 1.28% 1.15% 1.04% 0.73% 1.37% ROE 11.0% 9.6% 8.5% 5.9% 10.7% ROATCE (1) 12.0% 10.5% 9.4% 7.0%
Slide 8: Steady Organic Loan Growth
0% 7% 24% 13% 18% 19% 11% 12% 6% 10% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q 2018 Loan Balance Outstanding ($000s) Originated Acquired Originated growth % (annualized) 8 Steady Organic Loan Growth (exclu
Slide 9: Loan Portfolio
9 Loan Portfolio (as of March 31, 2018) CRE 40% 1 - 4 Mortgage 28% C&I 11% C&D 11% Home Equity 6% Consumer 4% Balance = $1.6 billion, 74 % of assets 1Q 2018 Yield = 5.55% Composition Acadiana 46% New Orleans 28% Northshore 13% Baton Rouge 9% Mississippi 3% Other 1% Market Diversification
Slide 10: Commercial Real Estate Loans
10 Commercial Real Estate Loans (including multifamily) Office Building 26% Medical 13% Retail 9% Shopping Center 9% Multifamily 8% Hotel 5% Restaurant 5% Energy 5% Leasing 4% Warehouse 3% Professional Office 3% Service Company 3% Convenience Store 2% Wholesale 2% Church/School 2% Other 1% Balance a
Slide 11: Construction and Development Loans
11 Construction and Development Loans Residential 36% Land - Commercial 25% Commercial Building 13% Subdivision 11% Farm Land 8% Multifamily 4% Land - Personal 2% Energy Related 1% Balance as of March 31, 2018 = $181 million 1Q 2018 yield = 6.75%
Slide 12: Residential Loans
12 1 - 4 Residential Loans 5 year fixed 25% 15 year fixed 21% 10 year fixed 17% ARM - Reprice > 3yr 13% ARM - Reprice <3yr 12% 30 year fixed 10% 20 year fixed 2% Balance as of March 31, 2018 = $466 million 75% Fixed Acquired Balance = 56% 1Q 2018 yield = 5.15%
Slide 13: Credit Quality
• Built reserves for potential losses due to challenges in Louisiana and Mississippi markets • Elevated charge offs in 2018 primarily from two problem credits • Direct energy e xposure (as of March 31, 2018) • $58 Million, or 4 % of total loans • 93% performing according to original loan agreement •
Slide 14: Deposits
14 • Balance as of March 31, 2018 = $1.8 billion, or 83 % of assets • Cost of Deposits = 0.56% in Q1 2018 • 0.41% Non - maturity • 0.96% CDs • Growth in deposits largely driven by NOW and Savings • Loan/Deposit ratio 89% • No non - relationship brokered deposits or subscription service CDs Deposits
Slide 15: Net Interest Margin (TE)
4.49% 3.66% 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 2017 1Q 2018 Home Bank Peer Median(1) 15 Net Interest Margin (TE) • Continually higher NIM than peers • Total loan yield in 1Q 2018 = 5.55% • Originated loan yield = 5.41% • Acquired loan y
Slide 16: Non-Interest Income and Expense
16 • Deposit redesign full rollout in 3Q 2017 • Expanded customer base through acquisition • Mortgage business remains challenging Non - Interest Income and Expense (1,2) 2.78% 2.71% 2.6% 2.8% 3.0% 3.2% 3.4% 3.6% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q 2018 NIE / Average Assets Peer Med
Slide 17: Investment Portfolio
17 • Balance = $276MM, or 13% of assets • Q1 2018 TE Yield = 2.38%, up 4 basis points from previous quarter • Unrealized loss at period end was $3.5MM, or 1.2% of book value • 95% of investments are held as AFS • Effective duration = 2.6 years • Tax Cuts and Jobs Act of 2017 reduced the corporate ta
Slide 18: Interest Rate Risk
18 • Loan/Deposit Ratio = 89% • No overnight or variable rate advances • No non - relationship brokered deposits • Non - interest deposits = 21% of assets • Short investment securities portfolio comprising only 13% of assets • Variable rate loans = 25% of loans • Short - term construction loans = 11
Slide 19: Share Information
19 Share Information 2Q 2017 3Q 2017 4Q 2017 1Q 2018 12 Months Diluted EPS (GAAP) $0.62 $0.56 $0.41 $0.81 $2.40 Adjusted Diluted EPS (Non - GAAP) (1) $0.66 $0.59 $0.84 $0.88 $2.97 Ending Share Price $42.52 $41.82 $43.22 $43.17 Dividend Yield 1.3% 1.3% 1.3% 1.4% P/ BV 167% 161% 146% 143% P/TBV (2) 17
Slide 20: Investment Perspective
20 • Strong earnings and shareholder returns • Conservative, well - managed credit culture • Solid track record since IPO • Well capitalized with capacity for continued growth • Home Bancorp capital ratios as of March 31, 2018 • Tier 1 leverage capital = 10.2% • Total risk based capital = 14.7 % • P
Slide 21: Meet Our Team
Homef# Bancorp,Inc. MEET OUR TEAM PRESIDENT/ (CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER (CHIEF CREDIT OFFICER CHIEF BANKING OFFICER CHIEF OPERATIONS OFFICER 6 ®, JOHN BORDELON JOSEPH ZANCO DARREN GUIDRY SCOTT RIDLEY JASON FREYOU Has led Home Bank since Joined Home Bank in 2008. Joined Home Ban
Slide 22: Home Bancorp, Inc.
Home24Bankscom m | ae oy / Bancorp Inc. Good for business. Good for life.
Slide 23: Appendix Non-GAAP Reconciliation
23 Appendix Non - GAAP Reconciliation (dollars in thousands) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 Total Shareholders' Equity $184,720 $188,939 $192,625 $277,871 $283,089 Less: Intangible assets 12,577 12,403 12,234 68,034 67,499 Non - GAAP tangible shareholders' equity $172,143 $176,536 $180,391
Slide 24: Appendix Non-GAAP Reconciliation
24 Appendix Non - GAAP Reconciliation (dollars in thousands) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 Reported non - interest expense $11,031 $11,051 $11,341 $12,755 $15,590 Less: Merger - related expenses - - 247 839 879 Non - GAAP non - interest expense $11,031 $11,051 $11,094 $11,916 $ 14,711 Repo
Slide 25: Appendix Non-GAAP Reconciliation
25 Appendix Non - GAAP Reconciliation (dollars in thousands) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 ROE (GAAP) 11.0% 9.6% 8.5% 5.9% 10.7% Less: (Loss) gain on closure or sale of premises, net of tax 0.6 - 0.6 - - - Add: Impact of Tax Act - - - 5.0 - Add: Merger - related expenses, net of tax - - 0.
Slide 26: Appendix Non-GAAP Reconciliation
26 Appendix Non - GAAP Reconciliation (dollars in thousands) 2014 2015 2016 2017 Reported non - interest income $8,175 $8,770 $11,157 $9,962 Less: (Loss) gain on closure or sale of premises - - 641 (69) Non - GAAP non - interest income $8,175 $8,770 $10,516 $10,031 Reported Net Income $9,872 $12,550