Slide 1: 3rd Quarter 2016 Investor Presentation
3 rd Quarter 2016 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 o f 1 934 and the regulations thereunder ). Forward looking statements are not historical facts but instead represent only the beliefs, expectations
Slide 3: Our Company
Our Company 3 • Headquartered in Lafayette, Louisiana – Bank founded in 1908 • IPO completed in October 2008 • Ticker symbol: HBCP (NASDAQ Global) • Market Cap = $247MM as of November 23, 2016 • Added to Russell 3000 Index in 2016 • Assets = $ 1.5 billion as of September 30, 2016 • Acquisition of Ba
Slide 4: Disciplined Acquirer Since IPO
Disciplined Acquirer Since IPO 4 193% asset increase CAGR = 14.9% Statewide Bank • March 2010 • FDIC - a ssisted • Assets - $199MM Britton & Koontz Bank • February 2014 • Assets - $301MM • Cash @ 88% of BV Guaranty Savings Bank • July 2011 • Assets - $257MM • Cash @ 95% of BV Bank of New Orleans • S
Slide 5: Tangible Common Equity Ratio
Tangible Common Equity Ratio (1) 5 Peers = BHCs $1 - $3 billion in assets. Peer data as of 9/30/2016. Source: SNL.com (1) Non - GAAP ratio (see tables 3 & 4 in appendix)
Slide 6: Improving Shareholder Returns
Improving Shareholder Returns 6 Paid First Dividend – 4Q 2014
Slide 7: Total Return Since 2008
Total Return Since 2008 7 Source: SNL. Data as of 11/23/2016
Slide 8: Quarterly Results
Quarterly Results 8 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 GAAP Basis: Reported Net Income ($000’s) $2,899 $3,963 $3,350 $4,016 $4,360 Diluted EPS $0.41 $0.56 $0.47 $0.57 $0.61 ROA 0.90% 1.02% 0.87% 1.04% 1.14% ROE 7.2% 9.7% 8.0% 9.4% 9.9% Efficiency Ratio 66.9% 63.4% 67.5% 62.4% 59.0% Ending Per S
Slide 9: Effective Balance Sheet Management
Effective Balance Sheet Management (% of assets) 9 2008 2009 2010 2011 2012 2013 2014 2015 3Q 2016 Cash and Equivalents 9% 5% 6% 4% 4% 4% 3 % 2% 2% Investments 22% 23% 18% 16% 17% 16% 15% 12% 12% Total Loans, net (1) 63% 64% 63% 69% 70% 71% 74% 78% 79% Other Assets 6% 8% 13% 11% 9% 9% 8% 8% 7% Non M
Slide 10: Steady Organic Loan Growth
Steady Organic Loan Growth (excludes acquisition accounting adjustments) 10 Originated Loan CAGR = 13%
Slide 11: Loan Portfolio
11 In 2008, virtually 100% of loans were located in the Lafayette market. Loan Portfolio as of September 30, 2016 B alance: $1.2 billion 3 rd Q 2016 average yield = 5.11%
Slide 12: Energy Loans
Energy Loans as of September 30, 2016 12 • No shared n ational credits • Unfunded loan commitments to energy companies = $8.4MM • Energy ALLL = 3.3% CRE $14,505 42% 1.2% Construction and Land 406 1% 0.0% Total Real Estate $14,911 43% 1.2% Equipment $6,623 19% 0.5% Marine Vessels 6,332 18% 0.5% Accou
Slide 13: Non Performing Assets / Assets
Non Performing Assets / Assets • Originated NPAs historically low • Aggressively reducing acquired NPAs • Credit discounts on acquired loans • 2016 increase due to three organic relationships 13 Peers = BHCs $1 - $3 billion in assets. Peer data as of 9/30/2016. Source: snl.com
Slide 14: Credit Quality
14 Credit Quality • Over past 18 months, 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 (dollars in thousands) 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 20
Slide 15: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio as of September 30, 2016 15 Balance: $ 422 million
Slide 16: C&I Portfolio
C&I Portfolio as of September 30, 2016 16 Balance: $139 million
Slide 17: Construction and Land Portfolio
Construction and Land Portfolio as of September 30, 2016 17 Balance: $135 million
Slide 18: Family First Mortgage Portfolio
1 - 4 Family First Mortgage Portfolio as of September 30, 2016 • Acquisition of BNO increased mortgage portfolio: – $233MM and 26% of total loans as of 2Q 2015 – $353MM and 29% of total loans as of 3Q 2016 • 83% of acquired BNO mortgage loans still held are 10 and 15 yr fixed mortgages and ARMs • Li
Slide 19: Investment Portfolio
• $184 MM, or 12% of Assets • 1.8 Year Effective Duration • 2.13% TE yield in 3 rd Q 2016 • 18% of investments are variable rate 19 Investment Portfolio as of September 30, 2016 Current +100 +200 +300 Market Value / Book 1.5% -0.8% -3.7% -6.7% Avg Life / Reprice Term 2.5 3.1 3.3 3.6 Avg Life 3.2 3.8
Slide 20: Deposit Mix
Deposit Mix 20 • 3 Q 2016 average cost on interest - bearing deposits = 0.39% • No non - relationship brokered deposits • Loan/Deposit ratio increased from 89% (2Q 2015) to 101% (3Q 2016) mostly due to acquired BNO loans and deposits
Slide 21: Net Interest Margin (TE)
Net Interest Margin (TE) 21 Outperformed peers by 81 basis points Peers = BHCs $1 - $3 billion in assets. Peer data as of 9/30/2016. Source: snl.com
Slide 22: Net Interest Margin Drivers
Net Interest Margin Drivers • Favorable asset mix – Gross Loans = 80% of assets (81 st percentile) – Investments = 12% of assets (28 th percentile) • Average Loan yield of 5.15% (82 nd percentile) – Loan discount accretion – Higher level of construction loans 22 • Maintained lower costs than peers e
Slide 23: Non-Interest Income
Non - Interest Income • Deposit product redesign complete; Full rollout in mid 2017 • Recently changed mortgage sales reporting to ensure greater alignment • Expanded brokerage team in 2016 23 September 2016 YTD Composition (1) Lagged peers by 17 basis points (1) Excludes one time gain on asset sale
Slide 24: Non-Interest Expense
Non - Interest Expense • Significant efficiencies obtained through B&K and BNO acquisitions • Converted BNO systems in 1Q 2016 • 2 branch closures related to BNO acquisition • Infrastructure built for continued growth 24 September 2016 YTD Composition (1) Lagged peers by 14 basis points (1) Excludes
Slide 25: Interest Rate Risk as of September 30, 2016
Interest Rate Risk as of September 30, 2016 Change in Interest Rates (1) % Change in NII at 9/30/16 (2) +100 0.1% +200 0.0% +300 - 0.5% 25 1) Assumes an instantaneous and parallel shift in interest rates. 2) The actual impact of changes in interest rates will depend on many factors including but not
Slide 26: Share Information
Share Information 26 4Q 2015 1Q 2016 2Q 2016 3Q 2016 12 Months Diluted EPS (GAAP) $0.56 $0.47 $0.57 $0.61 $2.21 Adjusted Diluted EPS (Non - GAAP) (1) $0.62 $0.53 $0.53 $0.61 $2.29 Ending Share Price $25.98 $26.81 $27.47 $28.00 Dividend Yield 1.2% 1.3% 1.5% 1.7% P/ BV 114% 115% 116% 116% P/TBV (2) 12
Slide 27: Capital Deployment Strategy
Capital Deployment Strategy • Acquisitions – Prior acquisitions have been cash transactions • Immediate ROE and EPS Impact (excluding merger costs) • Steady Organic Loan Growth • Cash Dividends – Announced company’s first dividend ($0.07/share) in 4Q 2014 – Raised dividend to $0.12/share in 3Q 2016
Slide 28: Investment Perspective
Investment Perspective • Consistently superior organic asset quality • Deep customer relationships – 108 years • EPS - focused acquirer; experienced deal team • Strong capital base – Disciplined deployment – Well positioned for additional acquisitions • Low direct energy exposure 28
Slide 29: Executive Leadership
Executive Leadership 29 Jason Freyou, Chief Operations Officer Joined Home Bank in 2015. Previously served as Chief Operations Officer for Teche Federal Bank. Darren Guidry, Chief Credit Officer Joined Home Bank in 1993. Previously served as Chief Lending Officer. Scott Ridley, Chief Banking Officer
Slide 30: Appendix Non-GAAP Reconciliation
Appendix Non - GAAP Reconciliation 30 (dollars in thousands) 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 Reported non-interest expense 10,522$ 11,553$ 12,341$ 11,856$ 10,643$ Less: Merger-related expenses 593 563 613 214 - Non-GAAP non-interest expense 9,929$ 10,990$ 11,728$ 11,642$ 10,643$ Reported non
Slide 31: Appendix Non-GAAP Reconciliation
Appendix Non - GAAP Reconciliation 31 (dollars in thousands) 2010 2011 2012 2013 2014 2015 September 2016 YTD Reported non-interest expense 24,373$ 31,002$ 32,763$ 33,205$ 41,772$ 42,022$ 34,839$ Less: Merger-related expenses 1,000 2,053 - 307 2,286 1,411 827 Non-GAAP noninterest expense 23,373$ 28,
Slide 32: Home Bancorp Inc.
Home Bancorp Inc. ‘Good for business. Good for life. Main Office 503 Kaliste Saloom Road Lafayette, LA 70508 (3373237-1960 Mailing Address: P.O. Box 81459 Lafayette, LA 70598-1459 www.home24bank.com