Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Investor Presentation (December 2014)
76 slides from Home Bancorp's investor presentation, Dec 15, 2014
Slide 1: Home Bancorp, Inc.
Home fg i
Slide 2: 3rd Quarter 2014 Investor Presentation
December 15, 2014 rd Quarter 2014 Investor Presentation Exhibit 99.1
Slide 3: Slide 3
Slide 4: 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 5: Our Company at a glance
| Total Assets $1.3 billion Current Market Capitalization $164 million Branches 27 Employees (FTE)
Slide 6: Our Company
Our Company • Bank chartered in 1908 – 106 years strong • Headquartered in Lafayette, Louisiana • Federal Savings Bank Charter • IPO completed in October 2008 • Ticker symbol: HBCP (Nasdaq Global)
Slide 7: Significant Asset Growth Since IPO
1,400,000 1,300,000 1,200,000 1,100,000 1,000,000 (i ARAN 900,000 ™ f 800,000 din 'asnee* 700,000 ~ ™ 600,000 ~ @ ° 3 8 & £ z 2 Qo é = 2 & 500,000 — 400,000 — 2008 2010 2013 3Q 2014
Slide 8: Significant Asset Growth Since IPO
Significant Asset Growth Since IPO 138% asset increase CAGR = 16%
Slide 9: Slide 9
Slide 10: Acquisitions
Acquisitions • Britton & Koontz Bank – February 2014 – Baton Rouge, Natchez & Vicksburg, Mississippi – Cash Deal @ 88% of book value • $301 MM Assets, $170MM Loans, $216MM Deposits • Guaranty Savings Bank – July 2011 – Greater New Orleans – Cash Deal @ 95% of book value • $257 MM Assets, $184MM Loan
Slide 11: Capital vs peer median
2010 2011 2012 ——Home Bancorp +——Peer Median
Slide 12: Tangible Common Equity Ratio
Tangible Common Equity Ratio Peer = BHCs $1-$3 billion in assets. Peer data as of 6/30/2014. Source: ffiec.gov
Slide 13: Share repurchases
2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 - 600,000 ~ 400,000 - 200,000 oO ¥ 2009 2011 2012 ‘early uCumulative
Slide 14: Share Repurchase Activity
Share Repurchase Activity 21% of IPO shares repurchased
Slide 15: 0
0 0
Slide 16: Favorable Balance Sheet Mix Change
2008 2009 2010 2011 2012 2013 3Q 2014 Favorable Balance Sheet Mix Change (% of assets) Cash & Equivalents 9% 5% 6% 4% 4% 4% 5% Investments 22% 23% 18% 16% 17% 16% 15% Total Loans net 63% 64% 63% 69% 70% 71% 72% Other Assets 6% 8% 13% 11% 9% 9% 8% Non Maturity Deposits 38% 41% 47% 46% 54% 56% 60% CDs
Slide 17: Market map
Trexarrans i Mount Pleasant Arkansas an. Magnolia Kosciusko Longview Henderson _Bastrop Ruston Shreveport {Monroe Mansfield Natchitoches duisiana J Leesville ‘Marksvill De Ridder Opelousas -jake'Charles_ err “New Iberia ississippi | Liberty’ o Baton Rouge NS Ce Aaa wo. tA Kenner. New'Orleans © Phila
Slide 18: Our Locations
Our Locations Source: snl.com
Slide 19: National Average unemployment comparison
National Average $uvaj10 Mon afnoy wore So}ABYD ONET
Slide 20: Unemployment Rate by Market
Unemployment Rate by Market September 2014 Sources: bls.gov, mdes.ms.gov
Slide 21: Lafayette market
2 4 £ ° & E % x
Slide 22: Lafayette Market
• Low unemployment (4.4%) • st overall mid-size city (8 th overall) for manufacturing jobs (New Geography 2013) • th best mid-size city (17 th overall) in Leading Locations for Economic & Job Growth (Area Development 2014) • th best mid-size city (27 th overall) Best Cities for Jobs, Forbes 2014 • H
Slide 23: % of Bank Totals
% of Bank Totals
Slide 24: Baton Rouge Market
• st overall metro area for Economic Growth Potential (Business Facilities 2013) • st overall most rapidly recovering housing market (National Association of Home Builders) • Top 5 emerging entrepreneurial cities (Entrepreneur Magazine 2013) • th overall best city for information jobs (Forbes 2013)
Slide 25: % of Bank Totals
% of Bank Totals
Slide 26: New Orleans/Northshore Market
• st overall in US for working age In-migration of Prime Workers (Forbes 2014) • st Most Economical mid-size city for business (KPMG 2014) • st overall for the decade for Major Economical Development Wins in the South (Southern Business & Development) • st in US for Exports per capita (New Geography
Slide 27: % of Bank Totals
% of Bank Totals
Slide 28: Western Mississippi Market
• Strong, stable deposit base • 25% non-interest-bearing deposits • Limited large bank competition • Tuscaloosa Shale opportunity 2013 Rank Institution Deposits in Market ($000) County Market Share % BancorpSouth 240,245 32.1 Trustmark 215,151 28.7 RiverHills 133,296 17.8 Regions 124,974 16.7 Guaran
Slide 29: Market mix by region
New Orleans 10%
Slide 30: Market Diversification
Market Diversification September 30, 2014 Loans Deposits In 2008, virtually 100% of loans and deposits were located in Lafayette Market
Slide 31: Loan growth by portfolio
$1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 z g i : 3 E $300,000 $200,000 $100,000 2010 2011 2012 2013 Q12014 ©Q22014 =—Q3 2014 ‘otal Originated —=Covered —=GSB —=B&K
Slide 32: Strong Organic Loan Growth
Strong Organic Loan Growth (excludes acquisition accounting discounts)
Slide 33: Loan categories
Se ay Multifamily Consumer % Multifamily 4 fo 8%
Slide 34: Loan Portfolio Composition
Loan Portfolio Composition 12/31/08 balance: $336 million 9/30/14 balance: $907 million Direct Energy Exposure = 3% of Total Loans
Slide 35: Commercial real estate breakdown
Professional Service Office Building 23% Shopping Center 8% Convenience Restaurant 8%
Slide 36: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio 9/30/14 balance: $330 million
Slide 37: Construction and land breakdown
Multifamily Subdivision 7% Land - Personal 2% i 795 _sgricultural Medical 10% Residential 28% Commercial Building
Slide 38: Construction and Land Portfolio
Construction and Land Portfolio 9/30/14 balance: $123 million
Slide 39: C&I breakdown by industry
Other Services Hospitality 3% 3% Wholesale Agricultural ee Rental Professional Services 7% 14% ‘Transportation 8%
Slide 40: C&I Portfolio
C&I Portfolio 9/30/14 balance: $96 million
Slide 41: Next Reset
Next Reset
Slide 42: 1-4 Family First Mortgage Portfolio
1-4 Family First Mortgage Portfolio 9/30/14 balance: $234 million Original Term Mortgage Portion
Slide 43: Slide 43
Slide 44: Non-Performing Assets / Assets
Non Performing Assets / Assets
Slide 45: Originated ALLL / Originated Loans
Originated ALLL / Originated Loans
Slide 46: ALLL and Loan Discounts
• Reported ALLL / Gross Loans = 0.82% – Peer Median = 1.34% ALLL and Loan Discounts
Slide 47: Deposit Composition
9% Non Interest Deposits ($000's) Bearing 1,200,000 5 7 30% 3Q 2014 Deposit Composition 28% 1,000,000 ~ 20% 800,000 24% 600,000 400,000 200,000 2008 2009-2010 2012 posits. % Non Interest
Slide 48: Deposit Growth and Composition
Deposit Growth and Composition Non-Interest Deposits / Assets Home Bank = 20% Peer Median = 15%
Slide 49: Deposits as % of Assets
% of Assets zon 2012 2008 2009 2010 |_ “Non Maturity Deposits uCDs
Slide 50: Strong Non-Maturity Deposit Growth
Strong Non-Maturity Deposit Growth
Slide 51: Home Bancorp, Inc.
Home ## Bancorpinc.
Slide 52: Quarterly Performance Metrics
3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 Quarterly Performance Metrics Reported Net Income $2,482,747 $1,705,649 $1,433,456 $2,752,625 $2,876,517 Merger Adjusted Net Income (1) $2,482,747 $1,905,406 $2,790,488 $2,889,045 $2,888,065 EPS - Diluted (1) $0.37 $0.28 $0.40 $0.42 $0.41 ROA (1) 1.04% 0.79% 1
Slide 53: YTD 9/30/14 performance
YTD 9/30/14
Slide 54: Net interest margin trend
4.66% 2008 2009 2010 2011 2012 2013 YTD 9/30/14
Slide 55: Yield on Loans and Cost of Funds
Yield on Loans (TE) 2009 2013 YTD 9/30/14 Cost of Funding Earning Assets yrp 9/30/14
Slide 56: Net Interest Margin Drivers
Net Interest Margin Drivers • Strong loan/asset ratio (71 st percentile) • Loan discount balance and accretion • C&D loans • Maintained lower costs than peers even after capital was deployed • Increased balances of Non-interest deposits • Lower reliance on CDs
Slide 57: Non Interest Income / Average Assets
Non Interest Income / Average Assets Bank Card Fees 26% 2009 2010 2011
Slide 58: Non-Interest Income
Non-Interest Income 2014 YTD Non-Interest Income • New retail leadership • Mortgage • Brokerage
Slide 59: Non Interest Expense / Average Assets
Non Interest Expense / Average Assets Comp yD ie 9/30/2014. =
Slide 60: Non-Interest Expense
Non-Interest Expense (excluding merger-related costs) (1) 2014 YTD Non-Interest Expense (1) • Investments in commercial and retail bankers • Infrastructure to support continued growth • Focus on efficiency (1) Excludes merger-related costs (see Table 2 in appendix)
Slide 61: Home Bancorp, Inc.
Home ff Bancorp inc.
Slide 62: Interest Rate Risk
Change in Interest Rates (1) % Change in NII at 9/30/14 (2) Interest Rate Risk +100 -0.2% +200 -0.7% +300 -1.3% 1) Assumes instantaneous and parallel shift in interest rates. 2) The actual impact of changes in interest rates will depend on many factors including but not limited to: the Company’s abi
Slide 63: Total return chart
a 3 g (2 § 2 = & ° -100 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 {| —nece SNL U.S. Bank and Thrift S&P 500 |
Slide 64: Total Return Since 2008
Total Return Since 2008 Source: SNL. Data as of 12/09/2014
Slide 65: Slide 65
Slide 66: Share Information
4Q 2013 1Q 2014 2Q 2014 3Q 2014 12 Months Price / Earnings (12 months prior) Share Information EPS – GAAP $0.25 $0.21 $0.40 $0.41 $1.27 EPS – Merger Adjusted (1) $0.28 $0.40 $0.42 $0.41 $1.51 Ending Share Price $18.85 $20.99 $22.02 $22.71 Dividend Yield 0.0% 0.0% 0.0% 0.0% P/BV 94% 103% 106% 107% P/
Slide 67: Institutional ownership
Institutional 38%
Slide 68: HBCP Ownership
HBCP Ownership Source: SNL (data as of 12/09/2014) Fully Diluted Insider Ownership = 26%
Slide 69: Slide 69
Slide 70: Investment Perspective
Investment Perspective • Consistently superior organic asset quality • Deep customer relationships – 106 years • Successful acquirer; experienced deal team • Strong capital base – Disciplined deployment – Well positioned for further acquisitions • Vibrant economies • Trading at 110% of tangible book
Slide 71: Slide 71
Slide 72: Executive Leadership
Executive Leadership Scott Sutton, Chief Operations Officer Joined Home Bank in 2008. Previously served as Senior Vice President of Operations of Teche Federal Bank and as Senior Vice President of Iberiabank. Darren Guidry, Chief Credit Officer Joined Home Bank in 1993. Previously served as Chief Le
Slide 73: Home Bancorp, Inc.
‘Bancorpinc.
Slide 74: Appendix: Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation (dollars in thousands) 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 Reported non-interest expense 7,890 $ 8,774 $ 11,257 $ 10,370 $ 9,968 $ Less: Merger-related expenses - (307) (1,955) (207) (128) Non-GAAP non-interest expense 7,890 $ 8,467 $ 9,302 $ 10,163 $ 9,840 $ Rep
Slide 75: Home Bancorp, Inc.
Home fff Bancorp Inc.
Slide 76: Home Bancorp, Inc.
Home fi Bancorp nc.