Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Raymond James U.S. Bank Conference 2019
24 slides from Home Bancorp's conference presentation, Sep 4, 2019
Slide 1: September 2019 Raymond James U.S. Bank Conference
September 2019 Raymond James U.S. Bank Conference
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 Our Company • Headquartered in Lafayette, Louisiana • Founded in 1908 • IPO completed October 2008 • Ticker symbol: HBCP (NASDAQ Global) • Market Cap = $333MM as of August 27, 2019 • Assets = $2.2 billion as of June 30, 2019 (third largest Louisiana - based bank) • 40 locations across south Louisi
Slide 4: Earnings
4 Earnings Net Income ($ millions) Diluted EPS Year over year record earnings and EPS since 2014 $14.5 $9.2 $7.3 $9.9 $12.6 $16. 0 $16.8 $31.6 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2012 2013 2014 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 $1.56 $1.28 $1.06 $1.42 $1.79 $2.25 $2.28 $3.40
Slide 5: Profitability
5 Profitability (1,2) Return on Average Assets Return on Average Equity Return on Tangible Common Equity Efficiency Ratio (1) See appendix for reconciliation of Non - GAAP items (2) Peers are publicly owned banks with $1 - $3 billion in assets. Source: S&P Global 0.80% 0.94% 1.04% 1.04% 1.46% 1.34%
Slide 6: Quarterly Financial Highlights
6 Quarterly Financial Highlights (1,2) 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 GAAP Net Income Basis: Reported Net Income ($000's) $7,776 $8,262 $8,089 $7,890 $6,580 Diluted EPS $0.84 $0.89 $0.87 $0.85 $0.71 ROA 1.44% 1.53% 1.50% 1.48% 1.20% ROE 10.9% 11.2% 10.7% 10.5% 8.5% ROATCE (1) 14.9% 15.1% 14
Slide 7: Amidst the Louisiana Downturn
7 Amidst the Louisiana Downturn ALLL % NPAs (in millions) Annualized Net Charge Offs • Built reserves for potential losses due to challenges in Louisiana and Mississippi markets • Elevated charge offs in 2018 primarily from three problem credits • Direct energy exposure (as of June 30, 2019) • $41 M
Slide 8: Credit Quality Trends
8 Credit Quality Trends NPAs / Assets Net Charge Offs / YTD Average Loans Loans Past Due ALLL / NPAs * Net Charge offs are annualized for June 2019 1.10% 0.73% 1.07% 1.16% 1.21% 1.26% 0.46% 0.37% 0.84% 1.01% 0.72% 0.68% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 2014 2015 2016 2017 2018 2Q-19 N
Slide 9: HBCP Stock Performance
9 HBCP Stock Performance (as of August 27, 2019) -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 J-18 S-18
Slide 10: Louisiana Tailwinds
10 Louisiana Tailwinds (1) (1) Source:1012 Industry Report Q3 2019 • Projected $32 billion in construction projects lined up through 2022 • Concentrated near Baton Rouge, New Orleans and Lake Charles
Slide 11: Challenges Yield Opportunities
11 Challenges Yield Opportunities Acquired Bank Date Assets ($ in MM) (at completion) % of TBV (at announcement) # of Branches Consideration Statewide Bank Mar - 2010 $199 FDIC - assisted 6 All Cash Guaranty Savings Bank Jul – 2011 257 95% 5 All Cash Britton & Koontz Bank Feb – 2014 301 90% 8 All Ca
Slide 12: Steady Organic Loan Growth
12 Steady Organic Loan Growth (excludes acquisition accounting) 0% 7% 24% 13% 18% 19% 11% 12% 6% 16% 16% - 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 2018 Jun-19 Loan Balance Outstanding ($000s) Originated Acqui
Slide 13: Loan Portfolio
13 Loan Portfolio (as of June 30, 2019) Composition Market Diversification Balance = $1.7 billion, 76% of assets 2Q 2019 Yield = 5.68% Acadiana 46% New Orleans 28% Northshore 13% Baton Rouge 10% Mississippi 2% Other 1% CRE 44% 1 - 4 Mortgage 26% C&D 12% C&I 10% Home Equity 5% Consumer 3%
Slide 14: Loan Portfolio
14 Loan Portfolio (as of June 30, 2019) CRE & Multifamily 1 - 4 Family Construction & Land $740 million Owner Occupied = 53% 2Q 2019 yield = 5.41% $200 million 2Q 2019 yield = 6.36% $443 million 71% Fixed Acquired Balance = 46% 2Q 2019 yield = 5.22% Residential , 29% Land - Commercial , 21% Commerci
Slide 15: Deposits
15 Deposits (as of June 30, 2019) Louisiana Market Share (1) Bank 2018 Rank Deposits Market Share JPMorgan Chase 1 17,989,141 17.4 Capital One 2 17,524,878 17.0 Hancock Whitney 3 12,952,562 12.5 Iberiabank 4 7,978,813 7.7 Regions 5 7,340,297 7.1 Origin 6 1,840,250 1.8 Home Bank 7 1,642,421 1.6 • Bal
Slide 16: Interest Rate Risk
16 Interest Rate Risk (1) NIM (TE) 4.42% 4.36% 3.52% 3.60% 3.00% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 4.60% 4.80% 5.00% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Home Bancorp Peer Median Loan Yield 5.29% 5.68% 4.56% 5.22% 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% 5.50% 5.75% 6.00% Q
Slide 17: Non-Interest Income & Expense
17 Non - Interest Income & Expense (1,2) Non - Interest Income / Average Assets Non - Interest Expense / Average Assets • Leveraged expense base through acquisitions and organic growth • Continued back office and infrastructure investments provide ability for continued expansion (1) See appendix for
Slide 18: HBCP – Dividends and Buybacks
18 HBCP – Dividends and Buybacks • Activity in 2019 • Purchased 295,071 shares • Average Price = $36.09 • $10.7 million cash deployed • 41,011 shares remain under current repurchase program • New share repurchase plan announced August 28, 2019 • 470,000 shares authorized under new plan (approximatel
Slide 19: Investment Perspective
INVESTMENT PERSPECTIVE 19 Strong earnings and shareholder returns Conservative, well - managed credit culture Solid track record since IPO Well capitalized with capacity for continued growth Bank capital ratios as of June 30, 2019 Tier 1 leverage capital = 11.2% Total risk based capital = 15.3% Disc
Slide 20: Growing. Investing. Serving.
GROWING. INVESTING. SERVING. Home Bancorp, Inc. is a Louisiana corporation and the holding company for Home Bank, N.A., a national bank headquartered in Lafayette, Louisiana. Home Bank offers a full range of deposit and loan products through convenient banking centers in growing regions of South Lou
Slide 21: Appendix Non-GAAP Reconciliation
21 Appendix Non - GAAP Reconciliation (dollars in thousands) 2014 2015 2016 2017 2018 June - 19 YTD Total Shareholders' Equity $154,144 $165,046 $179,843 $277,871 $304,040 $313,494 Less: Intangible assets 4,266 15,304 12,762 68,034 66,055 65,247 Non - GAAP tangible shareholders' equity $149,878 $149
Slide 22: Appendix Non-GAAP Reconciliation
22 Appendix Non - GAAP Reconciliation (dollars in thousands) 2014 2015 2016 2017 2018 June - 19 YTD Reported non - interest income $8,175 $8,770 $11,157 $9,962 $13,447 $6,142 Less: Gain (loss) on sale of assets - - 641 (69) - (347) Non - GAAP non - interest income $8,175 $8,770 $10,516 $10,031 $13,4
Slide 23: Appendix Non-GAAP Reconciliation
23 Appendix Non - GAAP Reconciliation (dollars in thousands) 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 Total Shareholders' Equity $289,361 $295,688 $304,040 $308,935 $313,494 Less: Intangibles 67,035 66,493 66,055 65,645 65,247 Non - GAAP tangible shareholders' equity $222,326 $229,195 $237,985 $243,2
Slide 24: Appendix Non-GAAP Reconciliation
24 Appendix Non - GAAP Reconciliation (dollars in thousands) 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 Reported non - interest income $3,345 $3,341 $3,279 $3,165 $2,977 Less: Gain (loss) on sale of assets - - - - (347) Non - GAAP non - interest income $3,345 $3,341 $3,279 $3,165 $3,324 Reported Net In
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