Home Bancorp, Inc.

Welcome to the Home Bank Corp, Inc. Second Quarter 2023 Earnings Call. Our hosts for today's conference are John Bordelon, Chairman, President, and CEO, and Mr. David Kirkley, CFO. At this time, all participants will be in a listen-only mode. Later, we will conduct a question-and-answer session. I would now like to turn the call over to your host, Mr. Kirkley. You may begin, sir.

Thank you, Paul. Good morning and welcome to HomeBank's first earnings call. Our earnings release and investor presentation are available on our website. I'd ask that everyone please refer to the disclaimer regarding forward-looking statements in the investor presentation and our SEC filings. Now I'll hand it over to John to make a few comments about the quarter. John?

Thanks, David. Good morning and thank you for joining HomeBank Corp.' 's first live earnings call. We appreciate your attendance as we strive to give you a better sense of HomeBank Corp and our approach to creating long-term shareholder value. For those of you that don't know me, my name is John Borland. I'm the Chairman, President, and CEO of HomeBank. The bank was founded in Lafayette, Louisiana as a thrift in 1908, 115 years ago. I haven't been here the whole time. By the 1980s, the banking industry had changed in recognizing the problems with the savings and loan model. we began transforming the balance sheet and the people we employed to become a commercial banking operation. In October 2008, as a 100-year-old company, we went public in an offering that was oversubscribed, and that was the day that the TARP bill was signed. We became the highest capitalized bank in the country with 25% capital assets. The next 15 years saw tremendous growth through organic expansion and through six acquisitions, which you can see on page six of the earnings presentation. We believe our ability to successfully acquire banks is one of our core competencies, and we expect acquisitions will continue to play a part in our growth strategy going forward. We grew from $400 million in assets at the time of our IPO to $3.3 billion today, with 43 branches in seven regions in Louisiana, Texas, and Mississippi. We have 488 employees who, along with our directors, are the largest shareholders of HomeBank. HomeBank's motto is, one team creating exceptional customer experiences, and we strive to live that motto every day. In order to live up to our motto and attain our goals, it's imperative that we invest in talented employees, technology, and the newest delivery systems. I'm very proud of what we've built here at HomeBank and think that we're very well positioned to continue to build shareholder value while serving the communities in which we operate. Now on to the quarter. The second quarter had significantly less volatility compared to the first quarter. Deposits were flat for the quarter with approximately $93 million in core deposits moving to CDs. This movement brought the NIM down to 3.94 from the previous quarter of 4.18. Year-to-date, deposits have declined $81 million, of which only $6 million of the decline came in the second quarter. We are very proud of our balance sheet and very proud of our core deposits. which make up 82% of the total deposits, with non-interest-bearing deposits making up 33% of total deposits. Assets grew 30 million, or just under 3.7%, annualized, with loans growing 46.4 million, or 7.1%, annualized. The majority of that loan growth was in CRE, residential, and C&D. Securities have declined $37 million for the year and $17 million or 3.6% for the second quarter. The bank has $1.2 billion in additional borrowing capacity should the need arise in the future. Uninsured and uncollateralized deposits total $570 million or 23% of total deposits. And the duration of our securities portfolio is 4.5 years. On the management front, our Chief Operations Officer, Jason Frey, who has taken a position as president and CEO of another Louisiana bank. We wish Jason tremendous success in his new venture, and we hope to have his replacement announced by the end of the year. Secondly, Home Bank is very pleased to announce the hiring of our new Houston market president, Jeff Dutterer. Jeff is a seasoned leader with 33 years of banking experience, with the last nine spending Houston market with BBVA and Prosperity Bank. We're excited to have a leader of Jeff's quality, in such an important market. With that, I'll turn it over to David Kirkley, our Chief Financial Officer.