Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Raymond James U.S. Bank Conference 2018
27 slides from Home Bancorp's conference presentation, Sep 5, 2018
Slide 1: Raymond James U.S. Bank Conference September 5, 2018
Raymond James U.S. Bank Conference September 5, 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 = $428MM as of August 29, 2018 • Assets = $2.2 billion as of June 30, 2018 (third largest Louisiana - based bank) • 39 locations • Acquisition of Saint Martin B
Slide 4: Disciplined Acquirer Since IPO
4 Disciplined Acquirer Since IPO Acquired Bank Date Assets ($ 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 Cas
Slide 5: HBCP Stock Performance 12/31/2008 – 8/29/2018
HBCP Stock Performance 12/31/2008 – 8/29/2018 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 J-18 HBCP
Slide 6: Profitability
6 Profitability (1,2) Return on Tangible Common Equity Efficiency Ratio Return on Average Assets Return on Average Equity (1) See appendix for reconciliation of Non - GAAP items (2) Peers throughout presentation are BHC’s with $1 - $3 billion in assets as of 06/30/18 0.80% 0.94% 1.04% 1.04% 1.41% 0.
Slide 7: Quarterly Financial Highlights
7 Quarterly Financial Highlights (1) ROATCE is a Non - GAAP ratio. Ratio reflects GAAP net income to tangible common equity. See appendix. (2) Income and ratios are Non - GAAP and have been adjusted to remove certain income and expense items. See appendix. (3) Ratio reflects Non - GAAP net income to
Slide 8: Steady Organic Loan Growth
8 Steady Organic Loan Growth (excludes acquisition accounting) Total Loan CAGR = 18% Originated Loan CAGR = 12% 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 2Q 2018 Loan Bala
Slide 9: Capital Investment in Louisiana
9 Capital Investment in Louisiana Sources: LED, LA Economic Outlook, 10/12 research
Slide 10: Loan Portfolio (as of June 30, 2018)
10 Loan Portfolio (as of June 30, 2018) Balance = $1.6 billion, 75% of assets 2 Q 2018 Yield = 5.72% Composition Market Diversification Acadiana 46% New Orleans 29% Northshore 13% Baton Rouge 9% Mississippi 2% Other 1% CRE 40% 1 - 4 Mortgage 28% C&I 11% C&D 11% Home Equity 6% Consumer 4%
Slide 11: Commercial Real Estate Loans (including multifamily)
11 Commercial Real Estate Loans (including multifamily) Balance as of June 30, 2018 = $653 million 2Q 2018 yield = 5.40% Office Building , 24% Medical , 13% Retail , 9% Shopping Center , 9% Multifamily , 7% Hotel , 5% Restaurant , 5% Energy , 5% Leasing , 4% Professional Office , 4% Warehouse , 4% S
Slide 12: Construction and Development Loans
12 Construction and Development Loans Balance as of June 30, 2018 = $181 million 2Q 2018 yield = 6.13% Residential , 33% Land - Commercial , 24% Commercial Building , 16% Subdivision , 11% Farm Land , 8% Multifamily , 5% Land - Personal , 2% Energy Related , 1%
Slide 13: Residential Loans
13 1 - 4 Residential Loans Balance as of June 30, 2018 = $458 million 74% Fixed Acquired Balance = 54% 2Q 2018 yield = 5.36% 5 year fixed , 25% 15 year fixed , 20% 10 year fixed , 17% ARM – Reprice >3 years , 14% ARM – Reprice <3 year , 12% 30 year fixed , 11% 20 year fixed , 1%
Slide 14: Credit Quality
• Built reserves for potential losses due to challenges in Louisiana and Mississippi markets • Elevated charge offs in Q1 2018 primarily from two problem credits • Direct energy e xposure (as of June 30, 2018) • $ 50 Million, or 3% of total loans • 94% performing according to original loan agreement
Slide 15: Deposits
15 • Balance as of June 30, 2018 = $1.8 billion, or 83 % of assets • Cost of Deposits = 0.57% in 2Q 2018 • 0.42% Non - maturity • 1.02% CDs • Growth in deposits largely driven by NOW and Savings • Loan/Deposit ratio 91% • No brokered deposits or subscription service CDs Deposits Bank 2017 Rank Depos
Slide 16: Net Interest Margin (TE)
4.59% 3.71% 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 June 2018 YTD Home Bank Peer Median(1) 16 Net Interest Margin (TE) • Continually higher NIM than peers • Total loan yield in 2Q 2018 = 5.72% • Originated loan yield = 5.53% • Acquired
Slide 17: Non-Interest Income and Expense
17 • Deposit redesign full rollout in 3Q 2017 • Expanded customer base through acquisition • Mortgage business remains challenging Non - Interest Income and Expense (1,2) • Leveraged expense base through acquisitions • Continued back office and infrastructure investments provide ability for continue
Slide 18: Investment Portfolio (as of June 30, 2018)
18 • Balance = $277MM, or 13% of assets • Q2 2018 TE Yield = 2.49%, up 16 basis points from Q2 2017 • Unrealized loss at period end was $4.5MM, or 1.59% 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 tax rate
Slide 19: Interest Rate Risk
19 • Loan/Deposit Ratio = 91% • 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 = 24% of loans • Short - term construction loans = 11
Slide 20: Share Information
20 Share Information Home Bancorp Price / Earnings Share price as of 8/29/2018 $45.24 Next 4 quarters average analyst earnings estimate (adjusted) $3.53 Forward P/E based on median estimate (next 4 quarters) 12.8x (1) Excludes non - core income and expense (see appendix) (2) Non - GAAP ratio (see ap
Slide 21: Investment Perspective
21 • 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 June 30, 2018 • Tier 1 leverage capital = 10.8% • Total risk based capital = 15.3% • Dis
Slide 22: Meet Our Team
Home ff? Bancorp Inc. PRESIDENT/ (CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER JOHN BORDELON Has led Home Bank since JOSEPH ZANCO Joined Home Bank in 2008, 1992, Previously served in Previously served as various management and Corporate Controller and ‘other positions sincejoining Principal Accou
Slide 23: Home Bancorp, Inc.
Home24Bank.com Homeff7 Bancorp, Inc. Good for business. Good for life.
Slide 24: Appendix Non-GAAP Reconciliation
24 Appendix Non - GAAP Reconciliation (dollars in thousands) 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 Total Shareholders' Equity $188,939 $192,625 $277,871 $283,089 $289,361 Less: Intangibles 12,403 12,234 68,034 67,499 67,035 Non - GAAP tangible shareholders' equity $176,536 $180,391 $209,837 $215,5
Slide 25: Appendix Non-GAAP Reconciliation
25 Appendix Non - GAAP Reconciliation (dollars in thousands) 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 Reported non - interest expense $11,051 $11,341 $12,755 $15,590 $16,322 Less: Merger - related expenses - 247 839 879 1,132 Non - GAAP non - interest expense $11,051 $ 11,094 $11,916 $14,711 $15,190
Slide 26: Appendix Non-GAAP Reconciliation
26 Appendix Non - GAAP Reconciliation (dollars in thousands) 2014 2015 2016 2017 Jun - 18 YTD Total Shareholders' Equity $154,144 $165,046 $179,843 $277,871 $289,361 Less: Intangible assets 4,266 15,304 12,762 68,034 67,035 Non - GAAP tangible shareholders' equity $149,878 $149,742 $167,081 $209,837
Slide 27: Appendix Non-GAAP Reconciliation
27 Appendix Non - GAAP Reconciliation (dollars in thousands) 2014 2015 2016 2017 Jun - 18 YTD Reported non - interest income $8,175 $8,770 $11,157 $9,962 $6,825 Less: (Loss) gain on closure or sale of premises - - 641 (69) - Non - GAAP non - interest income $8,175 $8,770 $10,516 $10,031 $6,825 Repor
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