Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Gulf South Bank Conference August 2020
21 slides from Home Bancorp's conference presentation, Aug 10, 2020
Slide 1: Gulf South Bank Conference August 2020
Gulf South Bank Conference August 2020
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 • Headquartered in Lafayette, Louisiana • Founded in 1908 • IPO completed October 2008 • Ticker symbol: HBCP (NASDAQ Global) • Market Cap = $212MM as of August 5, 2020 • Assets = $2.6 billion as of June 30, 2020 • 40 locations across south Louisiana and western Mississippi • Ownership (S
Slide 4: Earnings
Earnings Net Income ($ millions) Diluted EPS $35 $4.00 $31.6 $30 $3.50 $3.40 $27.9 $3.05 $3.00 $25 $2.50 $20 $2.25 $2.28 $16.8 $16.0 $2.00 $1.79 $15 $12.6 $1.50 $1.42 $9.9 $10 $9.2 $1.28 $1.06 $7.3 $1.00 $5 $4.4 $0.50 $0.50 $0 $0.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 20
Slide 5: Profitability
Profitability (1) Return on Average Assets Return on Average Equity 1.6% 1.50% 12% 11.1% 10.5% 1.4% 1.26% 1.27% 10% 9.3% 9.0% 1.2% 8.6% 1.03% 1.05% 7.7% 1.0% 0.92% 8% 0.8% 6% 1.46% 10.9% 1.27% 0.6% 9.2% 9.0% 1.04% 1.04% 4% 8.6% 0.94% 0.37% 7.8% 2.8% 0.4% 0.80% 6.7% 2% 0.2% 0.37% 2.8% 0.0% 0% 2014 20
Slide 6: Quarterly Financial Highlights
Quarterly Financial Highlights (dollars in thousands except per share data) 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 Profitability Net Income $6,580 $6,856 $6,606 $1,905 $2,493 Diluted EPS $0.72 $0.75 $0.73 $0.21 $0.29 ROA 1.20% 1.23% 1.18% 0.34% 0.39% ROE 8.5% 8.6% 8.3% 2.4% 3.2% ROATCE(1) 11.3% 11.
Slide 7: Select Industry Exposure
Select Industry Exposure (as of June 30, 2020) % ALLL by Loans % ALLL by Industry NPL's / NPL’s / Loans (dollars in thousands) Total PPP Loans Excluding PPP Allowance Industry Excluding PPP NPL’s Total Loans Excluding PPP Retail CRE $191,761 ‐ $191,761 $7,108 3.71% 3.71% $7,098 0.36% 0.41% Hotels an
Slide 8: Changes in ALLL – June 2020 YTD
Changes in ALLL – June 2020 YTD Q2 ALLL $40 Q1 ALLL $6.4 $35 CECL Adoption ($1.1) $30 $6.3 • CECL adoption on ($0.3) $25 January 1, 2020 $4.5 $0.1 dollars in millions $20 increased the allowance $33.8 on acquired loans $15 $28.5 $22.5 $10 $17.9 • Reserve build in 2020 $5 reflected potential losses $
Slide 9: Credit Quality Trends
Credit Quality Trends NPAs / Assets ALLL / NPAs 1.40% 1.30% 140% 1.21% 1.06% 1.20% 1.16% 1.10% 1.07% 120% 121% 1.00% 100% 1.01% 0.80% 0.73% 80% 0.84% 84% 0.75% 0.60% 0.72% 60% 75% 0.58% 63% 63% 0.40% 58% 57% 0.46% 40% 0.37% 0.20% 20% 0.00% 0% 2014 2015 2016 2017 2018 2019 2Q‐20 2014 2015 2016 2017 2
Slide 10: Asset Growth
Asset Growth 3,000 2,700 St. Martin Bank & Trust 2,400 Bank of New 2,100 Orleans Britton & 1,800 Guaranty (dollars in millions) Koontz Bank Savings Bank 1,500 CAGR = 13.7% as of March 2020 1,200 Statewide Bank CAGR = 15.0% as of June 2020 900 600 Home Bank Total Assets 300 0 2008 2009 2010 2011 2012
Slide 11: Steady Organic Loan Growth
Steady Organic Loan Growth (excludes acquisition accounting) 2,500 CAGR Excluding PPP Loans: 2,000 Total Loan CAGR = 15% Originated Loan CAGR = 13% 1,500 9% 15% 16% 1,000 6% 12% 11% 19% 18% 13% Loan Balance Outstanding (dollars in millions) 500 24% 0% 7% ‐ 2008 2009 2010 2011 2012 2013 2014 2015 201
Slide 12: Loan Portfolio excluding PPP loans
Loan Portfolio excluding PPP loans as of June 30, 2020 Composition Market Diversification Home Equity Consumer Mississippi Other 4% 2% 3% 1% C&I Baton Rouge 12% 11% C&D Northshore 12% CRE 14% Acadiana 45% 41% 1‐4 Mortgage New Orleans 25% 30% 12
Slide 13: Deposits
Deposits (as of June 30, 2020) Millions $2,400 • Quarterly deposit growth driven largely 9% 9% 12% 11% 11% 10% $2,200 by government stimulus & other factors 14% 24% 21% 16% 17% 15% related to COVID‐19 $2,000 20% 17% • $210MM deposit growth from $1,800 21% 22% 22% 22% customers who received PPP loans
Slide 14: Yields
Yields NIM (TE) 5.00% 4.80% 4.69% 4.73% 4.57% nd 4.60% • Average PPP Loans in 2 Q = $188MM 4.41% 4.36% nd 4.40% • PPP Fee Income recognized in 2 Q = 4.18% 4.20% 4.12% 4.14% 4.11% $882,000 4.00% nd 3.75% • $170MM increase in cash in 2 Q due to 3.80% 3.60% deposit increase 3.40% • 77% of loans fixed 3
Slide 15: Noninterest Income & Expense
Noninterest Income & Expense Noninterest income 0.8% Excludes noncore items(1) Change 0.8% (dollars in thousands) Q2‐19 Q1‐20 Q2‐20 QOQ YOY 0.68% Service fees and charges $1,413 $1,464 $942 ($522) ($471) 0.7% 0.65% Bank card fees 1,212 1,137 1,127 (10) (85) 0.7% 0.62% 0.62% 0.62% Gain on sale of loa
Slide 16: Capital
Capital Dividends per share Capital Ratios $0.90 $0.84 18% 15.3% 15.3% 15.3% $0.80 16% 14.9% 14.8% $0.71 $0.70 14% 11.2% 11.2% $0.60 $0.55 12% 11.1% 10.8% $0.22 $0.50 10% 9.1% $0.41 $0.40 8% $0.30 $0.30 $0.22 6% $0.20 4% $0.10 $0.07 $0.22 2% $0.00 0% 2014 2015 2016 2017 2018 2019 2020 2Q‐19 3Q‐19 4Q
Slide 17: Investment Perspective
Investment Perspective Strong earnings and shareholder returns Conservative, well-managed credit culture Market disruption creates new opportunities Well capitalized with capacity for continued growth Disciplined acquirer Insider owners committed to continual improvement 17
Slide 18: We Are One Team, Creating Exceptional Customer Experiences
WE ARE ONE TEAM, CREATING EXCEPTIONAL CUSTOMER EXPERIENCES
Slide 19: Appendix Non-GAAP Reconciliation
Appendix Non‐GAAP Reconciliation (dollars in thousands) 2014 2015 2016 2017 2018 2019 Jun‐20 YTD Total Shareholders' Equity $154,144 $165,046 $179,843 $277,871 $304,040 $316,329 $309,326 Less: Intangible assets 4,266 15,304 12,762 68,034 66,055 64,472 63,777 Non‐GAAP tangible shareholders' equity $1
Slide 20: Appendix Non-GAAP Reconciliation
Appendix Non‐GAAP Reconciliation (dollars in thousands) 2014 2015 2016 2017 2018 2019 June‐20 YTD Reported non‐interest income $8,175 $8,770 $11,157 $9,962 $13,447 $14,415 $6,461 Less: BOLI benefit ‐ ‐ ‐ ‐ ‐ 1,194 ‐ Less: Gain (loss) on sale of assets ‐ ‐ 641 (69) ‐ (347) ‐ Non‐GAAP non‐interest inc
Slide 21: Appendix Non-GAAP Reconciliation
Appendix Non‐GAAP Reconciliation (dollars in thousands except per share data) 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 Total Shareholders' Equity $313,494 $314,677 $316,329 $311,497 $309,326 Less: Intangibles 65,247 64,854 64,472 64,119 63,777 Non‐GAAP tangible shareholders' equity $248,247 $249,823
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