HOME BANCORP, INC. Q3 2023
Investor Presentation
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, Inc. and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward looking statements may be identified by the use of such words as: "believe", "expect", "anticipate", "intend", "plan", "estimate", or words of similar meaning, or future or conditional terms such as "will", "would", "should", "could", "may", "likely", "probably", or "possibly." Forward looking statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks, uncertainties and assumption, many of which are difficult to predict and generally are beyond the control of Home Bancorp, Inc. and its management, that could cause actual results to differ materially from those expressed in, or implied or projected by, forward looking statements. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward looking statements: (1) economic and competitive conditions which could affect the volume of loan originations, deposit flows and real estate values; (2) the levels of noninterest income and expense and the amount of loan losses; (3) competitive pressure among depository institutions increasing significantly; (4) changes in the interest rate environment causing reduced interest margins; (5) general economic conditions, either nationally or in the markets in which Home Bancorp, Inc. is or will be doing business, being less favorable than expected; (6) political and social unrest, including acts of war or terrorism; (7) we may not fully realize all the benefits we anticipated in connection with our acquisitions of other institutions or our assumptions made in connection therewith may prove to be inaccurate; (8) the COVID-19 pandemic; (9) cyber incidents or other failures, disruptions or security beaches; or (10) legislation or changes in regulatory requirements adversely affecting the business of Home Bancorp, Inc. Home Bancorp, Inc. undertakes no obligation to update these forward looking statements to reflect events or circumstances that occur after the date on which such statements were made.
As used in this report, unless the context otherwise requires, the terms "we," "our," "us," or the "Company" refer to Home Bancorp, Inc. and the term the "Bank" refers to Home Bank, N.A., a national bank and wholly owned subsidiary of the Company. In addition, unless the context otherwise requires, references to the operations of the Company include the operations of the Bank.
For a more detailed description of the factors that may affect Home Bancorp's operating results or the outcomes described in these forward-looking statements, we refer you to our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2022. Home Bancorp assumes no obligation to update the forward-looking statements made during this presentation. For more information, please visit our website www.home24bank.com.
Non-GAAP Information
This presentation contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). The Company's management uses this non-GAAP financial information in its analysis of the Company's performance. In this presentation, information is included which excludes acquired loans, intangible assets, impact of the gain (loss) on the sale of a banking center, the impact of merger-related expenses and one-time tax effects. Management believes the presentation of this non-GAAP financial information provides useful information that is helpful to a full understanding of the Company's financial position and core operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial information presented by other companies.
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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
Highlights:
- Total Assets: $3.3 billion at September 30, 2023
- Market Cap: $266 million at October 13, 2023
- Ownership (S&P Global as of October 13, 2023)
- Institutional: 42%
- Insider/ESOP: 14%
Total Assets
$3.3B
Total Loans
$2.6B
Total Deposits
$2.6B
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Our
Markets
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Quarterly Financial Highlights
(dollars in thousands, except per share data) | ||||||||||||
2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | |||||||
Profitability | ||||||||||||
Net income | $ | 8,461 | $ | 10,434 | $ | 10,776 | $ | 11,320 | $ | 9,781 | $ | 9,754 |
Diluted EPS | 1.03 | 1.28 | 1.32 | 1.39 | 1.21 | 1.22 | ||||||
ROA | 1.03 % | 1.27 % | 1.35 % | 1.43 % | 1.21 % | 1.18 % | ||||||
ROE | 10.2 | 12.4 | 13.2 | 13.5 | 11.3 | 11.0 | ||||||
ROATCE(1) | 14.4 | 17.3 | 18.8 | 18.8 | 15.5 | 15.2 | ||||||
Efficiency ratio | 66.1 | 58.5 | 57.8 | 57.1 | 62.1 | 62.9 | ||||||
Provision for loan losses | $ | 591 | $ | 1,696 | $ | 1,987 | $ | 814 | $ | 511 | $ | 351 |
Core pre-provision net income(1) | 9,530 | 11,507 | 11,941 | 11,559 | 10,084 | 9,820 | ||||||
Balance Sheet | ||||||||||||
Assets | $ | 3,362,216 | $ | 3,167,666 | $ | 3,228,280 | $ | 3,266,970 | $ | 3,290,153 | $ | 3,317,729 |
Loans | 2,224,655 | 2,303,279 | 2,430,750 | 2,466,392 | 2,510,759 | 2,569,094 | ||||||
Cash and cash equivalents | 444,151 | 150,556 | 87,401 | 107,171 | 96,873 | 84,520 | ||||||
Allowance for loan losses | (26,020) | (27,351) | (29,299) | (30,118) | (30,639) | (31,123) | ||||||
Total deposits | 2,920,376 | 2,738,424 | 2,633,181 | 2,557,744 | 2,551,718 | 2,597,484 | ||||||
Loan/Deposit | 76 % | 84 % | 92 % | 96 % | 98 % | 99 % | ||||||
Per Share Data | ||||||||||||
Share price | $ | 34.13 | $ | 38.99 | $ | 40.03 | $ | 33.03 | $ | 33.21 | $ | 31.87 |
Book value | 39.44 | 38.27 | 39.82 | 41.66 | 42.22 | 42.30 | ||||||
Tangible book value(1) | 28.86 | 27.66 | 29.20 | 31.09 | 31.59 | 31.67 | ||||||
Price / tangible book value per share | 118 % | 141 % | 137 % | 106 % | 105 % | 101 % | ||||||
Dividend paid | $ | 0.23 | $ | 0.23 | $ | 0.24 | $ | 0.25 | $ | 0.25 | $ | 0.25 |
(1) See appendix for reconciliation of Non-GAAP items.
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Asset Growth
4,000 | St. Martin | Texan Bank | |||||||||||||
Bank & Trust | |||||||||||||||
($ in millions) | Bank of New | ||||||||||||||
3,000 | Orleans | ||||||||||||||
Britton & Koontz | |||||||||||||||
Assets | Guaranty | ||||||||||||||
Bank | |||||||||||||||
2,000 | Savings Bank | ||||||||||||||
Total | |||||||||||||||
Statewide | |||||||||||||||
Bank | |||||||||||||||
Bank | |||||||||||||||
Home | 1,000 | CAGR = 13.3% | |||||||||||||
as of September 30, | |||||||||||||||
2023 | |||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | Sep-23 | ||
YTD |
Acquired Bank | Date | Assets ($ in MM) | % of TBV | # of Branches | Consideration |
(at completion) | (at announcement) | ||||
Statewide Bank
Guaranty Savings Bank
Britton & Koontz Bank
Bank of New Orleans
St. Martin Bank & Trust
Texan Bank
March 2010 | $199 | FDIC-assisted | 6 | All Cash |
July 2011 | $257 | 95% | 5 | All Cash |
February 2014 | $301 | 90% | 8 | All Cash |
September 2015 | $346 | 126% | 4 | All Cash |
December 2017 | $597 | 183% | 12 | ~80% Stock, 20% Cash(1) |
March 2022 | $416 | 144% | 5 | All Cash |
(1) Cash was comprised of an aggregate $19.5 million special cash distribution paid by St. Martin Bancshares to its shareholders.
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Earnings
Net Income
($ in millions)
$60 | $7.00 | ||||||||||
$50 | $48.6 | $6.00 | |||||||||
$5.00 | |||||||||||
$40 | |||||||||||
$31.6 | $34.1 | $4.00 | |||||||||
$30.9 | |||||||||||
$30 | $27.9 | ||||||||||
$24.8 | $3.00 | ||||||||||
$20 | $16.0 | $16.8 | $2.00 | ||||||||
$12.6 | |||||||||||
$9.9 | |||||||||||
$10 | $1.00 | ||||||||||
$0 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | $0.00 |
Q1 | Q2 | Q3 | Q4 |
Diluted EPS
$5.77 | |||||||||
$4.16 | |||||||||
$3.82 | |||||||||
$3.40 | |||||||||
$3.05 | $2.85 | ||||||||
$2.25 | $2.28 | ||||||||
$1.79 | |||||||||
$1.42 | |||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
Q1 | Q2 | Q3 | Q4 | ||||||
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Profitability(1)
Return on Average Assets
2.0% | ||||||||
1.8% | 1.53 | |||||||
1.6% | 1.46 | |||||||
1.32 | ||||||||
1.4% | 1.12 | 1.25 | 1.24 | 1.19 | ||||
1.2% | 1.04 | |||||||
1.0% | 1.76 | |||||||
0.8% | 1.46 | 1.43 | ||||||
1.27 | ||||||||
0.6% | 1.07 | 1.21 | 1.18 | |||||
0.99 | ||||||||
0.4% | ||||||||
0.2% | ||||||||
0.0% | 2018 | 2019 | 2020 | 2021 | 2022 | 1Q | 2Q | 3Q |
2023 | 2023 | 2023 | ||||||
GAAP | Core pre-provision earnings |
Return on Average Equity
16.0% | 13.8 | ||||||||
14.0% | |||||||||
11.8 | 11.6 | ||||||||
12.0% | 11.4 | 11.1 | |||||||
10.0% | 9.3 | 8.9 | 8.5 | ||||||
8.0% | 14.4 | 13.5 | |||||||
6.0% | 10.9 | 11.3 | 11.0 | ||||||
10.2 | |||||||||
4.0% | 9.0 | 7.8 | |||||||
2.0% | |||||||||
0.0% | 2018 | 2019 | 2020 | 2021 | 2022 | 1Q | 2Q | 3Q | |
2023 | 2023 | 2023 | |||||||
GAAP | Core pre-provision earnings |
Return on Tangible Common Equity | Efficiency Ratio | |||||||||||||||||
20.0% | 18.6 | 70.0% | ||||||||||||||||
18.0% | 15.6 | 15.6 | ||||||||||||||||
16.0% | 14.9 | 14.8 | 65.0% | 63.8 | 64.8 | |||||||||||||
63.5 | 63.0 | |||||||||||||||||
14.0% | 11.8 | 61.7 | ||||||||||||||||
11.1 | 61.2 | |||||||||||||||||
12.0% | 10.5 | |||||||||||||||||
60.0% | 59.6 | |||||||||||||||||
10.0% | 18.8 | 58.1 | ||||||||||||||||
18.0 | ||||||||||||||||||
8.0% | 14.8 | 15.5 | 15.1 | |||||||||||||||
13.9 | 63.3 | 62.9 | ||||||||||||||||
6.0% | 11.8 | 10.2 | 55.0% | 62.1 | 62.1 | |||||||||||||
60.0 | 59.1 | |||||||||||||||||
4.0% | 57.1 | 57.1 | ||||||||||||||||
2.0% | ||||||||||||||||||
50.0% | ||||||||||||||||||
0.0% | 2018 | 2019 | 2020 | 2021 | 2022 | 1Q | 2Q | 3Q | 2018 | 2019 | 2020 | 2021 | 2022 | 1Q | 2Q | 3Q | ||
2023 | 2023 | 2023 | 2023 | 2023 | 2023 | |||||||||||||
ROATCE | Core pre-provision earnings | GAAP | Core pre-provision earnings |
(1) See appendix for reconciliation of Non-GAAP items.
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Organic Loan Growth
(excludes acquisition accounting & unearned income)
Loan Balance Outstanding ($ in millions)
3,000
2,500
2,000
1,500
1,000
500
-
CAGR Excluding PPP Loans: | ||||||||||||||||
Total Loan CAGR = 15% | ||||||||||||||||
Originated Loan CAGR = 13% | ||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | Sep-23 | |
YTD | ||||||||||||||||
Originated | Acquired | PPP Loans | ||||||||||||||
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Loan Portfolio
(as of September 30, 2023)
Composition
Home Equity, 3%
Multifamily, 4%
Consumer, 1%
Market Diversification
MS, 2%
Baton Rouge, 11%
Acadiana, 29%
C&D, 13%
CRE, 46%
C&I, 16%
1-4 Mortgage, 17%
CRE Loan Portfolio
- Owner Occupied - 52%
- Non-ownerOccupied - 48%
Northshore 14%
Houston, 17% | New Orleans, 27% |
3Q 2023 annualized growth rate - 9%
- Total loans - $2.6 billion
- Houston market - 21% annualized growth rate
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Disclaimer
Home Bancorp Inc. published this content on 18 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 October 2023 21:30:35 UTC.
