Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Gulf South Bank Conference 2019
24 slides from Home Bancorp's conference presentation, May 6, 2019
Slide 1: Gulf South Bank Conference May 6-7, 2019
Gulf South Bank Conference MAY 6 - 7, 2019 1
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 Our Company • Headquartered in Lafayette, Louisiana • Founded in 1908 • IPO completed October 2008 • Ticker symbol: HBCP ( Nasdaq Global ) • Market Cap = $ 348MM as of April 30, 2019 • Assets = $2.2 billion as of March 31, 2019 (third largest Louisiana - based bank) • 40 locations • Acquisition of
Slide 4: Earnings
4 Earnings Net Income ($ millions) Diluted EPS Record earnings and EPS since 2014 $7.9 $9.2 $7.3 $9.9 $12.6 $16.0 $16.8 $31.6 $0 $5 $10 $15 $20 $25 $30 $35 2012 2013 2014 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 $0.85 $1.28 $1.06 $1.42 $1.79 $2.25 $2.28 $3.40 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3
Slide 5: Profitability
5 Profitability (1,2) Return on Average Assets Return on Average Equity Return on Tangible Common Equity Efficiency Ratio (1) See appendix for reconciliation of Non - GAAP items (2) Peers are publicly - owned banks with $ 1 - 3 billion in assets. Source: S&P Global 0.80% 0.94% 1.04% 1.04% 1.46% 1.48
Slide 6: Quarterly Financial Highlights
6 Quarterly Financial Highlights 1Q 2018 2Q 2018 3Q 2018 4 Q 2018 1Q 2019 GAAP Net Income Basis: Reported Net Income ($000's) $7,463 $7,776 $8,262 $8,089 $7,890 Diluted EPS $0.81 $0.84 $0.89 $0.87 $0.85 ROA 1.37% 1.44% 1.53% 1.50% 1.48% ROE 10.7% 10.9% 11.2% 10.7% 10.5% ROATCE (1) 14.9% 14.9% 15.1%
Slide 7: Disciplined Acquirer Since IPO
300,000 600,000 900,000 1,200,000 1,500,000 1,800,000 2,100,000 2,400,000 2,700,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q 2019 Home Bank Total Assets ($000s) St. Martin Bank & Trust Statewide Bank Britton & Koontz Bank Bank of New Orleans CAGR = 14.9% Guaranty Savings Bank 7 Disc
Slide 8: Steady Organic Loan Growth
8 Steady Organic Loan Growth (excludes acquisition accounting) 0% 7% 24% 13% 18% 19% 11% 12% 6% 16% 6% - 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 2018 Q1 2019 Loan Balance Outstanding ($000s) Originated Acquir
Slide 9: Loan Portfolio (as of March 31, 2019)
9 Loan Portfolio (as of March 31, 2019) Composition Market Diversification Acadiana 46% New Orleans 28% Northshore 13% Baton Rouge 9% Mississippi 3% Other 1% Balance = $1.6 billion, 75% of assets 1Q19 Yield = 5.64% CRE 43% 1 - 4 Mortgage 27% C&D 12% C&I 10% Home Equity 5% Consumer 3%
Slide 10: Loan Portfolio (as of March 31, 2019)
10 Loan Portfolio (as of March 31, 2019) CRE & Multifamily 1 - 4 Family Construction & Land Office Building , 25% Medical , 13% Shopping Center , 10% Retail , 8% Multifamily , 6% Restaurant , 6% Leasing , 4% Professional Office , 5% Hotel , 5% Energy , 4% Service Company , 3% Warehouse , 3% Other ,
Slide 11: Credit Quality
11 Credit Quality ALLL % 1.05% 1.07% 1.09% 0.89% 0.87% 0.92% 0.96% 0.99% 1.00% 1.38% 1.40% 1.40% 1.52% 1.40% 1.40% 1.38% 1.36% 1.34% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 4Q-18 1Q-19 Reported ALLL Originated ALLL NPAs (in millions) $13.8 $14.4 $16.6 $22.5 $23.5 $18.
Slide 12: Credit Quality
12 Credit Quality NPAs / Assets Net Charge Offs / YTD Average Loans Loans Past Due ALLL / NPAs 1.10% 0.73% 1.07% 1.16% 1.21% 1.32% 0.46% 0.37% 0.84% 1.01% 0.72% 0.68% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 2014 2015 2016 2017 2018 1Q-19 NPAs / Total Assets Originated NPAs / Total Assets 58%
Slide 13: Deposits (as of March 31, 2019)
13 Deposits (as of March 31, 2019) 21% 21% 24% 26% 27% 28% 27% 24% 24% 25% 25% 24% 22% 22% 22% 21% 20% 21% 22% 24% 21% 16% 17% 16% 8% 9% 9% 12% 11% 11% $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2014 2015 2016 2017 2018 Q1 2019 Millions NOW Demand deposits Certificates of deposit Money market Sa
Slide 14: Net Interest Margin (TE)
14 Net Interest Margin (TE) 4.41% 3.66% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% 5.00% 2012 2013 2014 2015 2016 2017 2018 Q1-19 Home Bank Peer Median(1) 0.75% spread • Continually higher NIM than peers • Total loan yield in 1Q19 = 5.64% • Originated loan yield = 5.42% • Acquired loan yield =
Slide 15: Interest Rate Risk
15 Interest Rate Risk 1 Year Change in Net Interest Income (change from base case) Cost of Interest Bearing Liabilities 0.50% 1.04% 0.75% 2.50% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 4Q-18 1Q-19 Cost of Interest Bearing Liabilities Fed Funds Spread
Slide 16: Non-Interest Income & Expense
16 Non - Interest Income & Expense (1,2) Non - Interest Income / Average Assets 0.59% 0.70% 0.5% 0.6% 0.7% 0.8% 0.9% 1.0% 1.1% 2012 2013 2014 2015 2016 2017 2018 Mar 2019 YTD Home Bancorp Peer Median Non - Interest Expense / Average Assets 2.86% 2.79% 2.4% 2.6% 2.8% 3.0% 3.2% 3.4% 3.6% 2012 2013 201
Slide 17: HBCP Stock Performance 12/31/2008 – 4/30/2019
17 HBCP Stock Performance 12/31/2008 – 4/30/2019 -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 S-18
Slide 18: HBCP – Distributions and Buybacks
18 HBCP – Distributions and Buybacks $0.20 $0.21* $0.07 $0.30 $0.41 $0.55 $0.71 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 2014 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 • 4Q18 • Purchased 22,604 shares • Average Price = $36.03 • 1Q19 • Purchased 134,005 shares • Average Price = $35.71 • 202,0
Slide 19: Investment Perspective
INVESTMENT PERSPECTIVE 19 Solid track record since IPO Strong earnings and shareholder returns Conservative, well - managed credit culture Well capitalized with capacity for continued growth Bank capital ratios as of March 31, 2019 Tier 1 leverage capital = 10.9% Total risk based capital = 15.2% Dis
Slide 20: Growing. Investing. Serving.
GROWING. INVESTING. SERVING. Home Bancorp, Inc. is a Louisiana corporation and the holding company for Home Bank, N.A., a national bank headquartered in Lafayette, Louisiana. Home Bank offers a full range of deposit and loan products through convenient banking centers in growing regions of South Lou
Slide 21: Appendix Non-GAAP Reconciliation
21 Appendix Non - GAAP Reconciliation (dollars in thousands) 2014 2015 2016 2017 2018 Q1 2019 Total Shareholders' Equity $154,144 $165,046 $179,843 $277,871 $304,040 $308,935 Less: Intangible assets 4,266 15,304 12,762 68,034 66,055 65,645 Non - GAAP tangible shareholders' equity $149,878 $149,742 $
Slide 22: Appendix Non-GAAP Reconciliation
22 Appendix Non - GAAP Reconciliation (dollars in thousands) 2014 2015 2016 2017 2018 Q1 2019 Reported non - interest income $8,175 $8,770 $11,157 $9,962 $13,447 $3,165 Less: Gain on sale of assets - - 641 (69) - - Non - GAAP non - interest income $8,175 $8,770 $10,516 $10,031 $13,447 $3,165 Reporte
Slide 23: Appendix Non-GAAP Reconciliation
23 Appendix Non - GAAP Reconciliation (dollars in thousands) 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 Total Shareholders' Equity $283,089 $289,361 $295,688 $304,040 $308,935 Less: Intangibles 67,499 67,035 66,493 66,055 65,645 Non - GAAP tangible shareholders' equity $215,590 $222,326 $229,195 $ 237,
Slide 24: Appendix Non-GAAP Reconciliation
24 Appendix Non - GAAP Reconciliation (dollars in thousands) 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 Reported non - interest expense $15,590 $16,322 $ 15,696 $ 15,617 $ 15,291 Less: Merger - related expenses 879 1,132 - - - Non - GAAP non - interest expense $14,711 $15,190 $ 15,696 $ 15,617 $ 15,291