Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — FIG Partners CEO Forum 2018
22 slides from Home Bancorp's conference presentation, Jan 31, 2018
Slide 1: FIG Partners CEO Forum January 31 and February 1, 2018
FIG Partners CEO Forum January 31 and February 1, 2018
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
Slide 3: Our Company
Home Bank (28 locations) St. Martin Bank & Trust (12 locations) Branch Locations Our Company ▪ Headquartered in Lafayette, Louisiana ▪ Founded in 1908 ▪ IPO completed in October 2008 ▪ Ticker symbol: HBCP (NASDAQ Global) ▪ Market Cap = $397MM as of January 25, 2018 ▪ Added to Russell 3000 Index in 2
Slide 4: Stronger Together
“STRONGER TOGETHER.
Slide 5: Transaction Terms and Key Assumptions
Transaction Terms and Key Assumptions Value & Consideration ▪ Aggregate v alue at close = $96.1 million (1,2,3) ▪ Approximately 80% Stock, 20% Cash (1) Valuation Multiples ▪ Aggregate Value / Tangible Book Value = 183% (2,4) ▪ Aggregate Value / LTM Earnings = 12.3x (2,4) (1) Includes $19.5 million s
Slide 6: Loan Composition
Loan Composition CRE 35% 1 - 4 Family 28% C&D 12% C&I 11% Home Equity 7% Multifamily 4% Consumer 3% December 31, 2016 Total Loans: $1.2 billion Loans / Assets = 79% December 31, 2017 Total Loans: $1.7 billion Loans / Assets = 75% Acquired $446 million in December 2017 CRE 37% 1 - 4 Family 28% C&I 11
Slide 7: Energy & Agricultural Loan Exposure
Energy & Agricultural Loan Exposure ▪ Outstanding balance = $20.3 million, or 1.2% of loans (Home Bank had an immaterial agricultural exposure prior to St. Martin Bank acquisition) ▪ Unfunded commitments = $11.4 million ▪ 100% of loans performing ▪ Crop distribution: ▪ 81% Rice ▪ 8% Cattle ▪ 7% Suga
Slide 8: Deposit Composition
NOW 24% Non Interest 24% CDs 22% Money Market 21% Savings 9% Deposit Composition NOW 26% Non Interest 25% CDs 21% Money Market 16% Savings 12% December 31, 2016 Total Deposits: $1.2 billion Deposits / Assets = 80% December 31, 2017 Total Deposits: $1.9 billion Deposits / Assets = 84% Acquired $533 m
Slide 9: Combined Deposit Market Share
Combined Deposit Market Share (1) Bank 2017 Rank Deposits in Market ($000) Branches Deposit Market Share (%) Iberiabank 1 3,452,508 18 30.0 JP Morgan Chase 2 1,436,065 18 12.5 Home Bank 3 1,084,222 18 9.4 Capital One 4 737,536 6 6.4 MidSouth Bank 5 701,385 14 6.1 Whitney Bank 6 564,074 7 4.9 Lafayet
Slide 10: Disciplined Acquirer since IPO
Disciplined Acquirer since IPO Acquired Bank Date Assets ($ 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 Cash
Slide 11: Quarterly Financial Highlights
Quarterly Financial Highlights 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 GAAP Net Income Basis: Reported Net Income ($000’s) $4,282 $5,006 $4,486 $4,090 $4,198 Diluted EPS $0.60 $0.69 $0.62 $0.56 $0.54 ROA 1.11% 1.28% 1.15% 1.04% 0.94% ROE 9.6% 11.0% 9.6% 8.5% 7.7% ROATCE (1) 10.6% 12.0% 10.5% 9.4% 9.
Slide 12: Consistent Growth in Shareholder Return
Consistent Growth in Shareholder Return 12 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 EPS Price per Share Reported Diluted EPS HBCP Stock Price
Slide 13: Steady Organic Loan Growth
- 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 Loan Balance Outstanding ($000s) Total Loans Originated Statewide GSB B&K BNO SMB Steady Organic Loan Growth Organic Loan CAGR = 12.1% (excludes acquisition accountin
Slide 14: Non Performing Assets / Assets
Non Performing Assets / Assets Peers throughout presentation = BHCs $1 - $3 billion in assets as of 9/30/2017. Source: S&P Global Intelligence 14 0.3% 0.3% 0.2% 0.4% 0.5% 0.7% 0.5% 0.4% 0.9% 1.0% 0.8% 1.2% 1.1% 1.2% 0.6% 0.4% 0.2% 0.2% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 2008 2009 2010 2011 2012 2013
Slide 15: Credit Quality
Credit Quality ▪ Low net charge offs ▪ Increased ALLL on originated loans due primarily to the potential direct and indirect impact of continued low energy prices ▪ ALLL does not include credit discounts on acquired loans (dollars in thousands) 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017
Slide 16: Net Interest Margin (TE)
4.48% 3.65% 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 Home Bank Peer Median 83 basis point spread Net Interest Margin (TE) ▪ Continually higher NIM than peers ▪ 4Q17 loan discount accretion was $1.9MM higher than 3Q17 due to significant p
Slide 17: Non Interest Income & Expense
2.77% 2.79% 2.60% 2.70% 2.80% 2.90% 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% 3.60% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 NIE / Avg. Assets Peer Median Home Bancorp Average gap = 0.41% Non Interest Income & Expense (1) ▪ Deposit redesign full rollout in 3Q 2017 ▪ Restructured mortgage sales fo
Slide 18: Share Information – Home Bancorp, Inc.
Share Information – Home Bancorp, Inc. 1Q 2017 2Q 2017 3Q 2017 4Q 2017 12 Months Diluted EPS (GAAP) $0.69 $0.62 $0.56 $0.54 $2.41 Adjusted Diluted EPS (Non - GAAP) (1) $0.66 $0.66 $0.59 $0.84 $2.75 Ending Share Price $33.75 $42.52 $41.82 $43.22 Dividend Yield 1.5% 1.3% 1.3% 1.3% P/ BV 135% 167% 161%
Slide 19: Non-GAAP Reconciliation – Home Bancorp, Inc.
Appendix Non - GAAP Reconciliation – Home Bancorp, Inc. (dollars in thousands) 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Total Shareholders' Equity $179,843 $184,720 $188,939 $192,625 $278,826 Less: Intangible assets 12,762 12,577 12,403 12,234 63,094 Non - GAAP tangible shareholders' equity $167,081
Slide 20: Non-GAAP Reconciliation – Home Bancorp, Inc.
Appendix Non - GAAP Reconciliation – Home Bancorp, Inc. (dollars in thousands) 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Reported non - interest expense $11,957 $11,031 $11,051 $11,341 $12,755 Less: Merger - related expenses - - - 247 839 Non - GAAP non - interest expense $11,957 $11,031 $11,051 $11,0
Slide 21: Non-GAAP Reconciliation – Home Bancorp, Inc.
Appendix Non - GAAP Reconciliation – Home Bancorp, Inc. (dollars in thousands) 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 ROE (GAAP) 9.6% 11.0% 9.6% 8.5% 7.7% Less: (Loss) gain on closure or sale of premises, net of tax - 0.6 - 0.6 - - Add: Impact of Tax Act - - - - 3.2 Add: Merger - related expenses,
Slide 22: Home Bancorp, Inc.
Home ff Bancorp Inc. Good for business. Good for life.