Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — May 2016 Gulf South Bank Conference
33 slides from Home Bancorp's conference presentation, May 2, 2016
Slide 1: May 2016 Gulf South Bank Conference
May 2016 Gulf South 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 of 1934 and the regulations hereunder). Forward looking statements are not historical facts but instead represent only the beliefs, expectations or o
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 = $203MM as of April 27, 2016 • Assets = $ 1.5 billion as of March 31, 2016 • Acquisition of Bank of New Orleans completed on September 15,
Slide 4: Disciplined Acquirer Since IPO
Disciplined Acquirer Since IPO 4 192% asset increase CAGR = 15.9% 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 in this presentation = BHCs $1 - $3 billion in assets. Peer data as of 12/31/2015. Source: ffiec.gov (1) Non - GAAP ratio (see tables 3 and 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 04/27/2016
Slide 8: Quarterly Results
Quarterly Results 8 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Reported Net Income ($000s) $2,848 $2,840 $2,899 $3,963 $3,350 Merger Adjusted Net Income ($000s) (1) $2,848 $3,072 $3,426 $4,370 $3,748 EPS - Diluted (1) $0.41 $0.44 $0.49 $0.62 $0.53 ROA (1) 0.93% 0.98% 1.07% 1.13% 0.97% ROE (1) 7.30% 7.7
Slide 9: Effective Balance Sheet Management
Effective Balance Sheet Management (% of assets) 9 2008 2009 2010 2011 2012 2013 2014 2015 1Q 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 63% 64% 63% 69% 70% 71% 74% 78% 78% Other Assets 6% 8% 13% 11% 9% 9% 8% 8% 8% Non Matur
Slide 10: Strong Organic Loan Growth
Strong Organic Loan Growth (excludes acquisition accounting discounts ) 10 Originated Loan CAGR = 13%
Slide 11: Loan Portfolio as of March 31, 2016
11 In 2008, virtually 100% of loans were located in the Lafayette market. Loan Portfolio as of March 31, 2016 B alance: $1.2 billion 1 st Q 2016 average yield = 5.20%
Slide 12: Energy Loans as of March 31, 2016
Energy Loans as of March 31, 2016 12 • Hold no shared n ational credits • Unfunded loan commitments to energy companies = $8.9MM • Energy Allowance = 3.1% CRE $16,027 44% 1.3% Construction and Land 393 1% 0.0% Total Real Estate $16,420 45% 1.3% Equipment $6,288 17% 0.5% Marine Vessels 6,066 16% 0.5%
Slide 13: Non Performing Assets / Assets
Non Performing Assets / Assets • Originated NPAs historically low • Aggressively reducing acquired NPAs • Credit discounts on acquired loans 13
Slide 14: Credit Quality
14 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 65% since year - end 2014 with minimal charge offs • Credit coverage on acquired loans = 5.1% of outstandin
Slide 15: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio as of March 31, 2016 15 Balance: $408 million
Slide 16: C&I Portfolio
C&I Portfolio as of March 31, 2016 16 Balance: $124 million
Slide 17: Construction and Land Portfolio
Construction and Land Portfolio as of March 31, 2016 17 Balance: $117 million
Slide 18: Family First Mortgage Portfolio
1 - 4 Family First Mortgage Portfolio as of March 31, 2016 • Acquisition of BNO increased mortgage portfolio: – $233MM and 26% of total loans as of 2Q 2015 – $388MM and 32% of total loans as of 1Q 2016 • 81% of acquired BNO mortgage loans still held are 10 and 15 yr fixed mortgages and ARMS • Limite
Slide 19: Investment Portfolio as of March 31, 2016
• $192 MM, or 12% of Assets • 1.9 Year Effective Duration • 2.26% TE yield in 1Q 2016 • 20% of investments are variable rate 19 Investment Portfolio as of March 31, 2016 Current +100 +200 +300 Market Value / Book 1.6% -0.9% -3.8% -6.8% Avg Life / Reprice Term 2.6 3.1 3.3 3.6 Avg Life 3.3 4.5 4.8 5.2
Slide 20: Deposit Growth
Deposit Growth 20 • 1Q 2016 average cost on interest - bearing deposits = 0.39% • No non - relationship brokered deposits • Loan/Deposit ratio increased from 89% (2Q 2015) to 98% (1Q 2016) due to acquired BNO loans and deposits
Slide 21: Net Interest Margin (TE)
Net Interest Margin (TE) 21 Outperformed peers by 81 basis points
Slide 22: Net Interest Margin Drivers
Net Interest Margin Drivers • Favorable asset mix – Gross Loans = 79% of assets (79 th percentile) – Investments = 12% of assets (27 th percentile) • Average Loan yield of 5.20% in 1Q 2016 (81 st percentile) – Loan discount accretion – Higher level of construction loans 22 • Maintained lower costs t
Slide 23: 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 23 1 st Q 2016 Composition Lagged peers by 15 basis points
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 to occur in 2016 • Infrastructure built for continued growth 24 1 st Q 2016 Composition (1) Lagged peers by 17 basis points (1
Slide 25: Interest Rate Risk as of March 31, 2016
Interest Rate Risk as of March 31, 2016 Change in Interest Rates (1) % Change in NII at 3/31/16 (2) +100 0.6% +200 0.9% +300 0.9% 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 limit
Slide 26: Managing Interest Rate Risk
Managing Interest Rate Risk 26 • To mitigate the interest rate risk of the acquired balance sheet of BNO, management took the following actions to maintain its asset/liability position while transitioning the acquired assets and liabilities: – Investment Portfolio • Decreased size of portfolio from
Slide 27: Share Information
Share Information 27 2Q 2015 3Q 2015 4Q 2015 1Q 2016 12 Months EPS – GAAP $0.41 $0.41 $0.56 $0.47 $1.85 EPS – Merger Adjusted (1) $0.44 $0.49 $0.62 $0.53 $2.08 Ending Share Price $25.24 $25.79 $25.98 $26.81 Dividend Yield 1.3% 1.2% 1.2% 1.3% P/ BV 115% 115% 114% 115% P/TBV (2) 118% 127% 126% 126% Ho
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 $0.10/share in 2Q 2016 • Share
Slide 29: Investment Perspective
Investment Perspective • Consistently superior organic asset quality • Deep customer relationships – 107 years • EPS - focused acquirer; experienced deal team • Strong capital base – Disciplined deployment – Well positioned for additional acquisitions • Low direct energy exposure • Low trading multi
Slide 30: Executive Leadership
Executive Leadership 30 Jason Freyou, Chief Operations Officer Joined Home Bank in 2015. Previously served as Chief Operations Officer for Teche Federal Bank. Darren Guidry, Chief Credit Officer Joined Home Bank in 1993. Previously served as Chief Lending Officer. Scott Ridley, Chief Banking Officer
Slide 31: Appendix Non-GAAP Reconciliation
Appendix Non - GAAP Reconciliation 31 (dollars in thousands) 2010 2011 2012 2013 2014 2015 2016 Reported non-interest expense 24,373$ 31,002$ 32,763$ 33,205$ 41,772$ 42,022$ 12,341$ Less: Merger-related expenses (1,000) (2,053) - (307) (2,286) (1,411) (613) Non-GAAP noninterest expense 23,373$ 28,94
Slide 32: Appendix Non-GAAP Reconciliation
Appendix Non - GAAP Reconciliation 32 (dollars in thousands) 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Total Shareholders' Equity $156,782 $158,902 $162,286 $165,046 $169,164 Less: Intangibles 4,083 3,911 15,911 15,304 15,119 Non-GAAP tangible shareholders' equity $152,699 $154,991 $146,375 $149,742 $
Slide 33: Home Bancorp Inc.
Home Bancorp Inc. ‘Good for business. Good for life. Main Office 503 Kaliste Saloom Road Lafayette, LA 70508 (337)237-1960 Mailing Address: P.O. Box 81459 Lafayette, LA 70598-1459 www.home24bank.com