Home Bancorp, Inc. · NASDAQ:HBCP
Home Bancorp — East Coast Financial Services Conference 2020
21 slides from Home Bancorp's conference presentation, Nov 10, 2020
Slide 1: East Coast Financial Services Conference November 10, 2020
East Coast Financial Services Conference November 10, 2020
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 • Headquartered in Lafayette, Louisiana • Founded in 1908 • IPO completed October 2008 • Ticker symbol: HBCP (NASDAQ Global) • Market Cap = $233MM as of November 5, 2020 • Assets = $2.6 billion as of September 30, 2020 • 40 locations across south Louisiana and western Mississippi • Owner
Slide 4: Earnings
Earnings Net Income ($ millions) Diluted EPS $35 $4.00 $31.6 $30 $3.50 $3.40 $27.9 $3.05 $3.00 $25 $2.50 $20 $2.25 $2.28 $16.8 $16.0 $2.00 $1.79 $15 $13.2 $12.6 $1.51 $1.50 $1.42 $9.9 $10 $9.2 $1.28 $1.06 $7.3 $1.00 $5 $0.50 $0 $0.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2
Slide 5: Profitability
Profitability (1) Return on Average Assets Return on Average Equity 1.6% 1.50% 12% 11.1% 10.5% 1.4% 1.26% 1.27% 10% 9.3% 9.0% 8.6% 1.2% 1.05% 1.03% 7.7% 1.0% 0.92% 8% 0.8% 0.72% 6% 5.6% 1.46% 10.9% 1.27% 0.6% 9.2% 8.6% 9.0% 1.04% 1.04% 4% 7.8% 0.94% 6.7% 0.4% 0.80% 0.72% 5.6% 2% 0.2% 0.0% 0% 2014 20
Slide 6: Quarterly Financial Highlights
Quarterly Financial Highlights (dollars in thousands except per share data) 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Profitability Net Income $6,856 $6,606 $1,905 $2,493 $8,782 Diluted EPS $0.75 $0.73 $0.21 $0.29 $1.01 ROA 1.23% 1.18% 0.34% 0.39% 1.35% ROE 8.6% 8.3% 2.4% 3.2% 11.2% ROATCE(1) 11.4% 10
Slide 7: Select Industry Exposure
Select Industry Exposure (as of September 30, 2020) % ALLL by Loans % ALLL by Industry NPL's / NPL’s / Loans (dollars in thousands) Total PPP Loans Excluding PPP Allowance Industry Excluding PPP NPL’s Total Loans Excluding PPP Retail CRE $189,757 - $189,757 $6,833 3.60% 3.60% $5,283 0.27% 0.31% Hote
Slide 8: Changes in ALLL – September 2020 YTD
Changes in ALLL – September 2020 YTD Q2 ALLL Q3 ALLL $40 Q1 ALLL $6.4 $35 $0.0 s n o i ($1.1) l ($0.8) l i $30 CECL Adoption $6.3 m n i ($0.3) s r $25 a $4.5 l $0.1 l o d $20 $33.8 $33.0 $15 $28.5 $22.5 $10 $17.9 $5 $- Q4 -19 Acquired Provision Day 1 Provision Net Q1 - 20 Provision Net Q2 - 20 Provi
Slide 9: Credit Quality Trends
Credit Quality Trends NPAs / Assets ALLL / NPAs 1.40% 1.30% 140% 1.21% 1.20% 1.16% 120% 133% 1.10% 1.07% 0.96% 1.00% 100% 1.01% 0.80% 0.73% 80% 84% 0.84% 0.60% 0.72% 0.75% 60% 75% 63% 63% 58% 57% 0.40% 0.51% 40% 0.46% 0.20% 0.37% 20% 0.00% 0% 2014 2015 2016 2017 2018 2019 3Q-20 2014 2015 2016 2017 2
Slide 10: Asset Growth
Asset Growth 3,000 ) St. Martin Bank s 2,700 n & Trust o i l l i 2,400 m Bank of New n i Orleans s 2,100 r a l l o 1,800 Britton & d Guaranty ( Koontz Bank s Savings Bank t e 1,500 s s A l 1,200 Statewide CAGR = 14.4% as of September a t Bank 2020 o T 900 k n a B 600 e m o 300 H 0 2008 2009 2010 201
Slide 11: Loan Balance Outstanding
(excludes accounting) acquisition SteadyOrganic Growth Loan Loan Balance Outstanding (dollars in millions) 2,000 2,500 1,000 1,500 500 - 082009 2008 0% Originated LoanCAGR 12% = CAGR Excluding PPP Loans: 7% TotalCAGR Loan15% = 0021 022013 2012 2011 2010 NetPPP Loans of September as $254 2020 30, mil
Slide 12: Loan Portfolio excluding PPP loans
Loan Portfolio excluding PPP loans as of September 30, 2020 Composition Market Diversification Home Equity Consumer Mississippi Other 4% 2% 2% 1% C&I Baton Rouge 11% 11% C&D Northshore Acadiana 12% 14% CRE 41% 47% 1-4 Mortgage 24% New Orleans 31% 12
Slide 13: Deposits
Deposits (as of September 30, 2020) Millions $2,400 • Year to date deposit growth driven 9% 9% 12% 11% 11% 11% $2,200 largely by government stimulus & 24% 21% 16% 17% 15% 15% $2,000 other factors related to COVID-19 20% 17% $1,800 21% 22% 22% 22% • YTD NOW account growth partially $1,600 28% driven
Slide 14: Yields
Yields NIM (TE) 5.00% 4.80% 4.73% • Average PPP Loans in 3rd Q = $253MM 4.57% 4.60% rd 4.41% 4.36% • PPP Fee Income recognized in 3 Q = 4.40% 4.14% 4.18% 4.20% 4.12% $1.1 million 4.00% • Cash increase of $146MM YTD 3.82% 3.76% 3.80% • 76% of loans fixed 3.60% 3.40% 3.20% 3.00% Q3-18 Q4-18 Q1-19 Q2-1
Slide 15: Noninterest Income & Expense
Noninterest Income & Expense Noninterest income 0.8% Excludes noncore items(1) (dollars in thousands) Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 0.68% Service fees and charges $1,516 $1,544 $1,464 $942 $1,123 0.7% 0.65% Bank card fees 1,141 1,102 1,137 1,127 1,331 0.62% 0.62% 0.62% Gain on sale of loans 355 316
Slide 16: Capital
Capital Dividends paid per share Capital Ratios (Bank only) $1.00 18% $0.90 $0.84 $0.88 16% 15.3% 15.3% 15.3% $0.80 14.9% 14.8% $0.71 14% $0.70 12% 11.1% 11.2% 10.8% $0.60 $0.55 9.1% 9.4% $0.50 10% $0.41 $0.40 8% $0.30 $0.30 6% $0.20 4% 2% $0.10 $0.07 $0.00 0% 3Q-19 4Q-19 1Q-20 2Q-20 3Q-20 2014 2015
Slide 17: Investment Perspective
Investment Perspective Strong earnings and shareholder returns Conservative, well-managed credit culture Market disruption creates new opportunities Well capitalized with capacity for continued growth Disciplined acquirer Insider owners committed to continual improvement 17
Slide 18: We Are One Team, Creating Exceptional Customer Experiences
WE ARE ONE TEAM, CREATING EXCEPTIONAL CUSTOMER EXPERIENCES
Slide 19: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation (dollars in thousands) 2014 2015 2016 2017 2018 2019 Sep-20 YTD Total Shareholders' Equity $154,144 $165,046 $179,843 $277,871 $304,040 $316,329 $313,324 Less: Intangible assets 4,266 15,304 12,762 68,034 66,055 64,472 63,439 Non-GAAP tangible shareholders' equity $1
Slide 20: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation (dollars in thousands) 2014 2015 2016 2017 2018 2019 Sep-20 YTD Reported non-interest income $8,175 $8,770 $11,157 $9,962 $13,447 $14,415 $10,255 Less: BOLI benefit - - - - - 1,194 - Less: Gain (loss) on sale of assets - - 641 (69) - (347) - Non-GAAP non-interest inc
Slide 21: Appendix Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation (dollars in thousands except per share data) 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Total Shareholders' Equity $314,677 $316,329 $311,497 $309,326 $313,324 Less: Intangibles 64,854 64,472 64,119 63,777 63,439 Non-GAAP tangible shareholders' equity $249,823 $251,857
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