Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Raymond James U.S. Bank Conference 2016
33 slides from Home Bancorp's conference presentation, Sep 7, 2016
Slide 1: September 2016 Raymond James U.S. Bank Conference
September 2016 Raymond James U.S. Bank Conference
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 = $211MM as of August 31, 2016 • Added to Russell 3000 Index in 2016 • Assets = $ 1.5 billion as of June 30, 2016 • Acquisition of Bank of N
Slide 4: Disciplined Acquirer Since IPO
Disciplined Acquirer Since IPO 4 192% asset increase CAGR = 15.4% 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 6/30/2016. 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 08/31/2016
Slide 8: Quarterly Results
Quarterly Results 8 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 GAAP Basis: Reported Net Income ($000s) $2,840 $2,899 $3,963 $3,350 $4,016 Diluted EPS $0.41 $0.41 $0.56 $0.47 $0.57 ROA 0.91% 0.90% 1.02% 0.87% 1.04% ROE 7.2% 7.2% 9.7% 8.0% 9.4% Efficiency Ratio 69.1% 66.9% 63.4% 67.5% 62.4% Ending Per Sh
Slide 9: Effective Balance Sheet Management
Effective Balance Sheet Management (% of assets) 9 2008 2009 2010 2011 2012 2013 2014 2015 2Q 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% 78% Other Assets 6% 8% 13% 11% 9% 9% 8% 8% 8% Non M
Slide 10: Steady Organic Loan Growth
Steady Organic Loan Growth (excludes acquisition accounting discounts ) 10 Originated Loan CAGR = 13%
Slide 11: Loan Portfolio as of June 30, 2016
11 In 2008, virtually 100% of loans were located in the Lafayette market. Loan Portfolio as of June 30, 2016 B alance: $1.2 billion 2 nd Q 2016 average yield = 5.15%
Slide 12: Energy Loans as of June 30, 2016
Energy Loans as of June 30, 2016 12 • Hold no shared n ational credits • Unfunded loan commitments to energy companies = $9.1MM • Energy Allowance = 3.3% CRE $14,957 42% 1.2% Construction and Land 649 2% 0.1% Total Real Estate $15,606 44% 1.3% Equipment $6,712 19% 0.6% Marine Vessels 5,889 16% 0.5%
Slide 13: August 2016 Louisiana Flood
August 2016 Louisiana Flood 13 D ata collected by LSU's Stephenson Disaster Management Institute http://www.wafb.com/story/32823656/map - shows - scope - of - louisiana - flooding Lafayette Baton Rouge New Orleans Credit Team assessing impact. Limited requests for relief to date.
Slide 14: Non Performing Assets / Assets
Non Performing Assets / Assets • Originated NPAs historically low • Aggressively reducing acquired NPAs • Credit discounts on acquired loans • 2Q16 increase due to two organic relationships 14 Peers = BHCs $1 - $3 billion in assets. Peer data as of 3/31/2016. Source: ffiec.gov
Slide 15: Credit Quality
15 Credit Quality • Over past 15 months, increased ALLL on originated loans due primarily to the potential direct and indirect impact of low energy prices • Reduced balance of acquired NPAs by 49% since year - end 2014 with minimal charge offs (dollars in thousands) 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1
Slide 16: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio as of June 30, 2016 16 Balance: $ 414 million
Slide 17: C&I Portfolio
C&I Portfolio as of June 30, 2016 17 Balance: $129 million
Slide 18: Construction and Land Portfolio
Construction and Land Portfolio as of June 30, 2016 18 Balance: $124 million
Slide 19: Family First Mortgage Portfolio
1 - 4 Family First Mortgage Portfolio as of June 30, 2016 • Acquisition of BNO increased mortgage portfolio: – $233MM and 26% of total loans as of 2Q 2015 – $372MM and 30% of total loans as of 2Q 2016 • 83% of acquired BNO mortgage loans still held are 10 and 15 yr fixed mortgages and ARMs • Limited
Slide 20: Investment Portfolio as of June 30, 2016
• $188 MM, or 12% of Assets • 1.6 Year Effective Duration • 2.21% TE yield in 2 nd Q 2016 • 19% of investments are variable rate 20 Investment Portfolio as of June 30, 2016 Current +100 +200 +300 Market Value / Book 1.9% -0.2% -3.1% -6.1% Avg Life / Reprice Term 2.4 3.1 3.3 3.7 Avg Life 3.1 3.8 4.1
Slide 21: Deposit Mix
Deposit Mix 21 • 2 Q 2016 average cost on interest - bearing deposits = 0.39% • No non - relationship brokered deposits • Loan/Deposit ratio increased from 89% (2Q 2015) to 99% (2Q 2016) due to acquired BNO loans and deposits
Slide 22: Net Interest Margin (TE)
Net Interest Margin (TE) 22 Outperformed peers by 81 basis points Peers = BHCs $1 - $3 billion in assets. Peer data as of 3/31/2016. Source: ffiec.gov
Slide 23: Net Interest Margin Drivers
Net Interest Margin Drivers • Favorable asset mix – Gross Loans = 79% of assets (82 nd percentile) – Investments = 12% of assets (25 th percentile) • Average Loan yield of 5.17% during first half of 2016 (83 rd percentile) – Loan discount accretion – Higher level of construction loans 23 • Maintaine
Slide 24: 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 • Expanded brokerage team in 2016 24 June 2016 YTD Composition (1) Lagged peers by 12 basis points (1) Excludes one time gain on asset sale in 2
Slide 25: 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 25 June 2016 YTD Composition (1) Lagged peers by 21 basis points (1) Excludes merg
Slide 26: Interest Rate Risk as of June 30, 2016
Interest Rate Risk as of June 30, 2016 Change in Interest Rates (1) % Change in NII at 6/30/16 (2) +100 0.1% +200 - 0.1% +300 - 0.5% 26 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 li
Slide 27: Share Information
Share Information 27 3Q 2015 4Q 2015 1Q 2016 2Q 2016 12 Months Diluted EPS (GAAP) $0.41 $0.56 $0.47 $0.57 $2.01 Adjusted Diluted EPS (Non - GAAP) (1) $0.49 $0.62 $0.53 $0.53 $2.17 Ending Share Price $25.79 $25.98 $26.81 $27.47 Dividend Yield 1.2% 1.2% 1.3% 1.5% P/ BV 115% 114% 115% 116% P/TBV (2) 12
Slide 28: Capital Deployment Strategy
Capital Deployment Strategy • Acquisitions – Prior acquisitions have been cash transactions • Immediate ROE and EPS Impact (excluding merger costs) • Organic Loan Growth • Cash Dividends – Announced company’s first dividend ($0.07/share) in 4Q 2014 – Raised dividend to $0.10/share in 2Q 2016 • Share
Slide 29: Investment Perspective
Investment Perspective • Consistently superior organic asset quality • Deep customer relationships – 108 years • EPS - focused acquirer; experienced deal team • Strong capital base – Disciplined deployment – Well positioned for additional acquisitions • Low direct energy exposure • Low trading multi
Slide 30: Executive Leadership
Executive Leadership 30 Jason Freyou, Chief Operations Officer Joined Home Bank in 2015. Previously served as Chief Operations Officer for Teche Federal Bank. Darren Guidry, Chief Credit Officer Joined Home Bank in 1993. Previously served as Chief Lending Officer. Scott Ridley, Chief Banking Officer
Slide 31: Appendix Non-GAAP Reconciliation
Appendix Non - GAAP Reconciliation 31 (dollars in thousands) 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 Reported non-interest expense 10,228$ 10,522$ 11,553$ 12,341$ 11,856$ Less: Merger-related expenses 256 593 563 613 214 Non-GAAP non-interest expense 9,972$ 9,929$ 10,990$ 11,728$ 11,642$ Reported no
Slide 32: Appendix Non-GAAP Reconciliation
Appendix Non - GAAP Reconciliation 32 (dollars in thousands) 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 Total Shareholders' Equity 158,902$ 162,286$ 165,046$ 169,164$ 173,567$ Less: Intangibles 3,911 15,911 15,304 15,119 13,524 Non-GAAP tangible shareholders' equity 154,991$ 146,375$ 149,742$ 154,045$
Slide 33: 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
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