Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — Q3 2024 Earnings Presentation
30 slides from Home Bancorp's earnings presentation, Oct 18, 2024
Slide 1: Q3 2024 Earnings Conference Call
Q3 2024 Earnings Conference Call
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 or
Slide 3: Our Company
Our Company Headquarters: Lafayette, LA Ticker: HBCP (NASDAQ) History: • Founded in 1908 • IPO completed October 2008 • Six acquisitions completed since 2010 • 42 locations across Southern Louisiana, Western Mississippi and Houston Total Assets Highlights: $3.4B • Total Assets: $3.4 billion at Septe
Slide 4: Our Markets
Our Markets eta LAFAYETTE Greater Acadiana Region TOTAL BRANCHES: 13 BATON ROUGE TOTAL BRANCHES: 4 NORTHSHORE HOUSTON TOTAL BRANCHES: 5 COMMERCIAL BANKING OFFICE: 1 NATCHEZ TOTAL BRANCHES: 3 NEW ORLEANS TOTAL BRANCHES: 6 NEW ORLEANS 9 we NORTHSHORE TOTAL BRANCHES: 6 SOUTHWEST ACADIANA TOTAL BRANCHES
Slide 5: Quarterly Financial Highlights
Quarterly Financial Highlights (dollars in thousands, except per share data) 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Profitability Net income $ 9,781 $ 9,754 $ 9,385 $ 9,199 $ 8,118 $ 9,437 Diluted EPS 1.21 1.22 1.17 1.14 1.02 1.18 ROA 1.21 % 1.18 % 1.13 % 1.11 % 0.97 % 1.10 % ROE 11.3 11.0
Slide 6: Asset Growth
Asset Growth 4,000 Texan Bank - CAGR = 12.6% $416 MM as of September 30, 3,500 2024 St. Martin Bank & Trust - $597 MM 3,000 Bank of New Home Bank Total Assets ($ in millions) Orleans - $346 MM 2,500 Britton & Koontz Bank - $301 MM 2,000 Guaranty Savings Bank - $257 MM 1,500 Statewide Bank - $199 MM
Slide 7: Profitability
(1) Profitability Return on Average Assets Return on Average Equity 2.0% 16.0% 1.8% 14.0% 1.6% 11.8 11.9 1.32 12.0% 1.4% 1.25 1.27 9.9 9.8 9.3 9.6 1.2% 1.12 1.10 1.10 10.0% 8.9 8.5 1.04 1.06 1.0% 8.0% 1.76 14.4 0.8% 6.0% 11.6 0.6% 1.27 1.23 10.2 10.0 9.8 0.99 1.07 1.11 0.97 1.10 4.0% 9.0 7.8 8.8 0.4
Slide 8: Loan Portfolio
Loan Portfolio (as of September 30, 2024) Composition Market Diversification Home Equity, 3% Consumer, 1% MS, 2% Multifamily, 6% Baton Rouge, 10% C&D, 12% CRE O.O., 25% Acadiana, 28% Northshore 14% C&I, 16% 1-4 Mortgage, 19% Houston, 18% New Orleans, 28% CRE N.O.O., 18% • Total loans - $2.7 billion
Slide 9: OO CRE Portfolio
OO CRE Portfolio (as of September 30, 2024) Average Rate Fixed Rate % % of % of Total OO Avg Loan Criticized 5.3% 75% dollars in thousands Balances Loans CRE Size Balances Convenience Store $ 128,252 5% 19 % $ 1,018 $ — Warehouse Or Industrial 95,548 4 14 540 4,082 Office 91,329 3 14 421 — Nonaccrua
Slide 10: NOO CRE Portfolio, including Multifamily
NOO CRE Portfolio, including Multifamily (as of September 30, 2024) % of % of Average Rate Fixed Rate % Total NOO Avg Loan Criticized dollars in thousands Balances Loans CRE Size Balances 5.6% 76% Multifamily $ 169,443 6% 27 % $ 1,210 $ 930 Retail Multi-tenant 133,217 5 21 1,514 454 Multi Use Facili
Slide 11: CRE Non-Medical Office Exposure
CRE Non-Medical Office Exposure (as of September 30, 2024) NOO Office Exposure Average Rate Average NOO 5.2% Remaining dollars in thousands Balances % of Total Loans Avg Loan Size Criticized Maturity Baton Rouge $ 27,188 1.0 % $ 1,295 $ — OO 5.3% Houston 22,462 0.9 2,042 — NOO 5.9 yrs Northshore 9,3
Slide 12: Commercial & Industrial
Commercial & Industrial (as of September 30, 2024) LOC Utilization Nonaccrual % of Criticized dollars in thousands Balances % of C&I Loans Balances Rate Balance Professional Services $ 51,924 13 % 1.9 % $ 45 50% $777,000 Finance and Insurance 51,559 12 1.9 1,344 Retail 37,923 9 1.4 432 Manufacturing
Slide 13: C&D Portfolio
C&D Portfolio Composition (as of September 30, 2024) Total Average 1-4 Family Construction, 20% Balance Balance $329.8 million $478.1K Commercial Construction, 52% Lots, Development and 0.6% $782K Unimproved Land, on Nonaccrual 28% net charge-offs or $2.1 million since 2009 Historic Charge-off (Reco
Slide 14: Changes in ALL
Changes in ALL 2021 2022 2023 2024 $40 $1.5 $2.3 $3.7 $30 $3.8 $(0.1) $(0.8) ($ in millions) $(0.7) $1.4 $20 $31.5 $32.3 $29.3 $10 $21.1 $0 Dec 2021 Allowance Provision Organic Net Dec 2022 Organic Net Dec 2023 Organic Net Sep 2024 for Texan for Texan Provision Charge- Provision Charge- Provision Ch
Slide 15: Credit Quality Trends
Credit Quality Trends NPAs / Assets ALL / NPAs 1.6% 350% 1.4% 1.30 1.21 300% 1.16 1.2% 267 304 250% 1.0% 1.01 0.77 200% 165 0.8% 176 0.6% 0.53 150% 0.72 0.75 0.49 0.34 100% 146 0.4% 0.31 0.2% 0.40 0.40 50% 0.28 57 63 63 0.0% 0.14 0.20 0% 2017 2018 2019 2020 2021 2022 2023 Sep-24 2017 2018 2019 2020
Slide 16: Investment Portfolio
Investment Portfolio 12% 2.4% of total assets Q3 yield (dollars in millions) Book Value Gain/(loss) Eff. Duration $32.2 million 99.7% MBS $199 $(18) 4.3 unrealized loss ~ AFS Agency CMBS 157 (7) 2.7 7.1% of book value Muni 55 (6) 5.9 CMO 17 (1) 3 Agency 18 (1) 3 $14.3 million $6.1 million Corp 7 (1)
Slide 17: Deposits
Deposits (as of September 30, 2024) $33,454 $4,000 11% 11% 11% 11% 12% 9% 8% Average deposit size 15% 15% 15% 15% 16% 17% 16% $3,200 17% 13% 13% 22% 24% 26% $ in millions 20% 27% 31% 25% Non-interest bearing 29% 24% 27% 28% 23% $2,400 deposit composition 28% 30% 34% 28% 25% 24% 27% $1,600 2018 2019
Slide 18: Deposits
Deposits (as of September 30, 2024) Uninsured Deposits(1) Retail Business Public Broker Total FDIC Insured 45% 18% —% —% 63% Approximately $642 million or 23% of total deposits Uninsured (1) 7 16 — — 23 Reciprocal — 4 — — 4 Public Funds — — 7 — 7 Coverage of Brokered Deposits — — — 3 3 Uninsured Dep
Slide 19: Yields
Yields NIM (TE) Quarter Month 4.60% 4.38 NIM 2.03% 4.40% 4.18 3.71% Cost of total deposits for 4.11 4.20% the quarter ended 3.94 for the quarter ended 4.00% September 2024 September 2024 3.75 3.76 3.80% 3.69 3.64 3.66 3.71 3.66 3.71 3.60% $135 million borrowing under Federal Reserve 3.40% BTFP at a
Slide 20: Interest Rate Risk
Interest Rate Risk Liability Betas Forecasted Change in NII 5.00% Rate Shock 1 Year % Change in NII 4.00% 200 1.7% 3.00% 100 1.0% 2.00% (100) (1.5)% 1.00% (200) (3.4)% —% Q1-Q2-Q3-Q4-Q1-Q2-Q3-Q4-Q1-Q2-Q3-Q4-Q1-Q2-Q3-Q4-Q1-Q2-Q3-Q4-Q1-Q2-Q3-Q4-Q1-Q2-Q3-Q4-Q1-Q2-Q3-Q4-Q1-Q2-Q3- 16 16 16 16 17 17 17 17
Slide 21: Noninterest Income & Expense
Noninterest Income & Expense Noninterest Income(1) / Assets 3Q 4Q 1Q 2Q 3Q (dollars in thousands) 0.65% 2023 2023 2024 2024 2024 0.62 0.62 0.62 Service fees and charges $ 1,277 $ 1,235 $ 1,254 $ 1,239 $ 1,291 0.60% 0.57 Bank card fees 1,903 1,646 1,575 1,751 1,613 0.54 0.55% Gain on sale of loans 68
Slide 22: Capital
Capital Dividends Per Share Share Repurchase Activity $1.50 Average *payable in November 2024 Year # Shares Price Cash Utilized 2019 419,498 36.82 15,444,895 $1.00 $1.01 $1.00 $0.91 $0.93 $0.84 $0.88 2020 530,504 26.41 14,011,605 * 2021 246,012 36.18 8,900,409 $0.50 2022 288,350 39.30 11,333,399 202
Slide 23: Capital
Capital Capital Ratios (Bank only) 20% 15.9 15.2 14.7 15.0 15% 13.9 14.2 14.4 14.4 13.8 13.6 13.2 13.2 12.4 13.0 11.0 11.2 11.2 11.3 10.4 9.7 9.8 10% 5% 0% 2020 2021 2022 2023 1Q 2024 2Q 2024 3Q 2024 Tier 1 leverage capital Common equity tier 1 Total risk-based capital Regulatory Capital and Adjuste
Slide 24: Investment Perspective
Investment Perspective IIs Strong earnings and shareholder returns Conservative, well-managed Market disruption mA credit culture creates new opportunities ES a Disciplined acquirer Insider owners committed to continual improvement pb 24 Homeff¥Bancorpinc. | 2 oO
Slide 25: Celebrating years of serving the communities that built us
Celebrating 115 years of serving a | 5 the communities that built us. AAU HOUSTON NATCHEZ NEW ORLEANS NORTHSHORE Home ff Bancorp Inc. | 25
Slide 26: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands, except per share data) 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Total shareholders' equity $ 346,117 $ 345,332 $ 367,444 $ 372,285 $ 375,830 $ 393,453 Less: intangible assets 87,138 86,749 86,372 86,019 85,690 85,361 Non-GAAP tangible
Slide 27: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands) 2019 2020 2021 2022 2023 Sep-24 YTD Total shareholders' equity $ 316,329 $ 321,842 $ 351,903 $ 329,954 $ 367,444 $ 393,453 Less: intangible assets 64,472 63,112 61,949 87,973 86,372 85,361 Non-GAAP tangible shareholders' equity $ 251,857 $ 25
Slide 28: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands) 2019 2020 2021 2022 2023 Sep-24 YTD Reported noninterest income $ 14,415 $ 14,305 $ 16,271 $ 13,885 $ 14,636 $ 10,996 Less: BOLI benefit 1,194 — 1,717 — — — Less: gain (loss) on sale of securities — — — — (249) — Less: gain (loss) on sale of
Slide 29: Appendix (non-GAAP reconciliation)
Appendix (non-GAAP reconciliation) (dollars in thousands except for per share data) ) 2018 2019 2020 2021 1Q2022 2022 2023 1Q2024 2Q2024 Sep-24 YTD Total shareholders' equity $ 304,040 $ 316,329 $ 321,842 $ 351,903 $ 337,504 $ 329,954 $ 367,444 $ 372,285 $ 375,830 $ 393,453 Less: intangible assets 6
Slide 30: In Tune
IN “TUNE In 2023, we sharpened our focus on the changing rate environment and established ourselves as a preferred community bank in each market we serve. Providing exceptional service and care, we remained in tune to the needs of customers and our dedicated employees, all while celebrating a milest