Home Bancorp Announces 2009 First Quarter Results

LAFAYETTE, La., April 29 /PRNewswire-FirstCall/ -- Home Bancorp, Inc. (Nasdaq: HBCP) (the "Company"), the parent company for Home Bank (www.home24bank.com), a Federally chartered savings bank headquartered in Lafayette, Louisiana (the "Bank"), announced net income of $1.7 million for the first quarter of 2009, an increase of $704,000, or 69%, compared to the first quarter of 2008 and an increase of $2.5 million, or 316%, compared to the fourth quarter of 2008. Diluted earnings per share were $0.21 for the first quarter of 2009, an increase of 310% from the $0.10 loss per share reported for the fourth quarter of 2008.

The Company completed its initial public stock offering ("IPO") on October 2, 2008 and began trading on the Nasdaq Global Market on October 3, 2008. Therefore, no shares were outstanding in the first quarter of 2008.

"We are incredibly pleased to report record quarterly earnings, especially in light of the current economic environment," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "Although South Louisiana is not immune to the economic challenges facing our nation, our markets continue to outperform most of the U.S. Our bankers continue to have success gaining new customers seeking our quality of service."

"Core deposit growth was exceptional during the quarter," added Mr. Bordelon. "We are also excited with the continued change in the mix of our loan portfolio."

Loans and Credit Quality

Loans totaled $336.4 million at March 31, 2009, an increase of $28.3 million, or 9%, from March 31, 2008, and an increase of $822,000, or 0.2%, from December 31, 2008. While net loans were essentially unchanged compared to the previous quarter, the change in the Company's loan mix was favorable as paydowns on 1-4 family mortgage loans were offset by commercial loan growth. Commercial loans (including commercial real estate, construction and land, multi-family residential and other commercial loans) increased $4.9 million, or 3%, during the first quarter of 2009.

The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.


                                  March 31,  December 31,  Increase/(Decrease)
     (dollars in thousands)         2009         2008      Amount     Percent
    Real estate loans:
      One- to four-family
       first mortgage             $133,720     $138,173    $(4,453)      (3)%
      Home equity loans
       and lines                    22,793       23,127       (334)      (1)
      Commercial real estate        86,388       84,096      2,292        3
      Construction and land         37,203       35,399      1,804        5
      Multi-family residential       6,481        7,142       (661)      (9)
        Total real estate loans    286,585      287,937     (1,352)      (1)
    Other loans:
      Commercial                    35,928       34,434      1,494        4
      Consumer                      13,877       13,197        680        5
        Total other loans           49,805       47,631      2,174        5
        Total loans               $336,390     $335,568       $822        -%



The Company recorded a $174,000 provision for loan losses during the first quarter of 2009 compared to a reversal of $30,000 during the first quarter of 2008 and a $298,000 provision for the fourth quarter of 2008. Net loan recoveries for the first quarter of 2009 were $1,000 compared to net charge-offs of $1,000 and $82,000 for the first and fourth quarters of 2008, respectively. Non-performing assets totaled $2.5 million, or 0.47%, of total assets at March 31, 2009, compared to $1.4 million and $1.5 million at March 31, 2008 and December 31, 2008, respectively. The increase in nonperforming assets during the first quarter of 2009 relates to three single family first mortgage loans which were placed on nonaccrual during the quarter. The Company does not anticipate any principal loss on these three loans.

As of March 31, 2009, the allowance for loan losses as a percentage of total loans was 0.83%, compared to 0.74% at March 31, 2008 and 0.78% at December 31, 2008.

Investment Securities Portfolio

The Company's investment securities portfolio totaled $116.2 million at March 31, 2009, an increase of $49.7 million, or 75%, from March 31, 2008, and a decrease of $2.1 million, or 2%, from December 31, 2008. The increase from March 31, 2008 was the result of the Company's investment of $87.2 million in net IPO proceeds in the fourth quarter of 2008. At March 31, 2009, the Company had an unrealized loss position on its investment securities portfolio of $7.2 million compared to an unrealized gain of $1.5 million and an unrealized loss of $8.0 million at March 31, 2008 and December 31, 2008, respectively. The unrealized loss relates primarily to the Company's non-agency mortgage-backed securities holdings, which amounted to $51.7 million, or 10% of total assets, at March 31, 2009. No charge for the other-than-temporary impairment ("OTTI") of investment securities was recorded during the first quarter of 2009, compared to a $2.8 million charge during the fourth quarter of 2008.

The following table summarizes the Company's non-agency mortgage-backed securities portfolio as of March 31, 2009.


                   # of                      Unrealized     S&P
    Collateral  Securities  Amortized Cost  Gain/(Loss)    Rating

     Prime          16       $39,222,000   $(6,723,000)     AAA
     Prime           1         2,336,000      (483,000)       A
     Prime           1         2,128,000       (31,000)  Not rated (1)
     Prime           1         1,027,000       (68,000)     BBB
     Prime           1         1,927,000      (418,000)      BB
     Prime           1           586,000        21,000        B
     Prime           1         1,142,000      (651,000)     CCC
     Alt-A           1         1,422,000        47,000      AAA
     Alt-A           1           867,000      (100,000)       B
     Alt-A           1         1,005,000         4,000   Not rated (2)
       Total
        non-agency
        mortgage-
        backed
        securities  25       $51,662,000   $(8,402,000)

    (1) Rated "Aaa" by Moody's.
    (2) Rated "Caa2" by Moody's and "CCC" by Fitch.

The Company holds no Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) preferred stock, equity securities, corporate bonds, trust preferred securities, hedge fund investments, collateralized debt obligations or structured investment vehicles.

Cash Invested at Other ATM Locations

Over the past several years, Home Bank has entered into contracts with various counterparties to provide cash for ATMs at approximately 1,400 locations throughout the United States. Cash invested at other ATM locations totaled $24.3 million at March 31, 2009, an increase of $6.1 million, or 33%, from March 31, 2008, and an increase of $84,000, or 0.3%, from December 31, 2008. The Bank's contracts with its ATM counterparties expire during the second quarter of 2009. The Bank does not intend to renew the contracts; thus, we expect to receive all cash invested at other ATM locations back from the counterparties in 2009.

Deposits

Deposits totaled $375.1 million at March 31, 2009, an increase of $23.0 million, or 7%, from March 31, 2008, and an increase of $21.0 million, or 6%, from December 31, 2008. The Company's continued focus is on growing its core deposit base (i.e., checking, savings and money market accounts), which increased $13.4 million, or 7%, during the first quarter of 2009.

The following table sets forth the composition of the Company's deposits at the dates indicated.


                                March 31,   December 31,   Increase(Decrease)
    (dollars in thousands)        2009         2008       Amount      Percent

    Demand deposit              $71,181      $67,047      $4,134         6%
    Savings                      21,812       19,741       2,071        10
    Money market                 74,624       68,850       5,774         8
    NOW                          43,643       42,200       1,443         3
    Certificates of deposit     163,882      156,307       7,575         5
            Total deposits     $375,142     $354,145     $20,997         6%

Net Interest Income

Net interest income for the first quarter of 2009 totaled $5.9 million, an increase of $1.9 million, or 47%, compared to the first quarter of 2008, and an increase of $272,000, or 5%, compared to the fourth quarter of 2008. The Company's net interest margin was 4.72% for the first quarter of 2009, 75 basis points higher than the same quarter a year ago and 14 basis points higher than the fourth quarter of 2008.

Average interest-earning assets totaled $497.2 million for the quarter ended March 31, 2009, an increase of 24% and 2% compared to the quarters ended March 31, 2008 and December 31, 2008, respectively. The average yield on interest-earning assets for the quarter ended March 31, 2009 was 6.06%, a decrease of 45 basis points and an increase of five basis points compared to the quarters ended March 31, 2008 and December 31, 2008, respectively.

Average interest-bearing liabilities totaled $327.0 million for the quarter ended March 31, 2009, an increase of 1% and 6% compared to the quarters ended March 31, 2008 and December 31, 2008, respectively. The average rate paid on interest-bearing liabilities for the quarter ended March 31, 2009 was 2.04%, a decrease of 111 and 21 basis points compared to the quarters ended March 31, 2008 and December 31, 2008, respectively.

Noninterest Income

Noninterest income for the first quarter of 2009 was $959,000, an increase of $193,000, or 25%, compared to the same quarter a year ago. Excluding the impact of OTTI charges of $2.8 million in the fourth quarter of 2008, first quarter 2009 noninterest income increased $139,000, or 17%, compared to the fourth quarter of 2008. The increases were primarily the result of increased gains on the sale of mortgage loans and higher levels of service fees and charges and bank card fees.

Noninterest Expense

Noninterest expense for the first quarter of 2009 totaled $4.0 million, an increase of $771,000, or 24%, compared to the same quarter a year ago. Excluding the impact of ATM losses of $867,000 in the fourth quarter of 2008, first quarter 2009 noninterest expense increased $152,000, or 4%, compared to the fourth quarter of 2008. Noninterest expense levels have increased over the past year due primarily to increased compensation and benefits expense resulting from our Baton Rouge expansion, where we opened two full-service banking offices during the second half of 2008, as well as expense related to our employee stock ownership plan ("ESOP"), higher professional and other fees due to the increased cost of operating as a public company and the Louisiana bank shares tax. The Company was not required to pay the Louisiana bank shares tax prior to Home Bank's mutual to stock conversion in October 2008.

This news release 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 news release, information is included which excludes the impact of charges for the other-than-temporary impairment of investment securities and ATM losses. Management believes the presentation of this non-GAAP financial information provides useful information that is essential to a proper understanding of the Company's core operating results. This non-GAAP financial information should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial information presented by other companies.

This news release contains certain forwardlooking statements. Forwardlooking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may."

Forwardlooking statements, by their nature, are subject to risks and uncertainties. A number of factors many of which are beyond our control could cause actual conditions, events or results to differ significantly from those described in the forwardlooking statements. Home Bancorp's Annual Report on Form 10-K for the year ended December 31, 2009, describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for losses on loans, risks of our growth strategy, geographic concentration of our business, dependence on our management team, risks of market rates of interest and of regulation on our business and risks of competition. Forwardlooking statements speak only as of the date they are made. We do not undertake to update forwardlooking statements to reflect circumstances or events that occur after the date the forwardlooking statements are made or to reflect the occurrence of unanticipated events.

                         HOME BANCORP, INC. AND SUBSIDIARY
                    CONDENSED STATEMENTS OF FINANCIAL CONDITION

                                                             December
                          March 31,     March 31,     %         31,       %
                            2009          2008      Change     2008    Change
                            ----          ----      ------     ----    ------
    Assets
      Cash and cash
       equivalents       $25,592,391   $13,168,514    94%  $20,150,248    27%
      Interest-
       bearing
       deposits in
       banks               1,388,000     2,970,000   (53)    1,685,000   (18)
      Cash invested
       at other ATM
       locations          24,328,114    18,261,597    33    24,243,780     -
      Securities
       available
       for sale,
       at fair value     112,296,397    62,052,234    81   114,235,261    (2)
      Securities
       held to
       maturity            3,895,918     4,481,269   (13)    4,089,466    (5)
      Mortgage
       loans held
       for sale            1,590,600     1,639,400    (3)      996,600    60
      Loans, net
       of unearned
       income            336,389,803   308,099,102     9   335,568,071     -
      Allowance for
       loan losses        (2,780,698)   (2,283,796)  (22)   (2,605,889)   (7)
                          ----------    ----------   ---    ----------    --
        Loans, net       333,609,105   305,815,306     9   332,962,182     -
                         -----------   -----------   ---   -----------   ---
      Office
       properties
       and equipment,
       net                15,227,422    11,656,909    31    15,325,997    (1)
      Cash surrender
       value of
       bank-owned
       life insurance      5,334,033     5,070,551     5     5,268,817     1
      Accrued interest
       receivable
       and other
       assets              9,633,416     4,937,039    95     9,439,637     2
                           ---------     ---------    --     ---------   ---
    Total Assets        $532,895,396  $430,052,819    24% $528,396,988     1%
                        ============  ============    ==  ============    ==


    Liabilities
      Deposits          $375,142,247  $352,128,470     7% $354,145,105     6%
      Federal Home
       Loan Bank
       advances           24,207,021    23,370,241     4    44,420,795   (46)
      Accrued
       interest
       payable and
       other
       liabilities         4,246,421     3,183,370    33     2,868,362    48
                        ---------     ---------       --     ---------    --
    Total Liabilities    403,595,689   378,682,081     7   401,434,262     1
                         -----------   -----------   ---   -----------   ---

    Shareholders'
     Equity
      Common stock           $89,270            $-     -%      $89,270     -%
      Additional paid
       -in capital        87,165,161             -     -    87,182,281     -
      Unearned ESOP
       shares             (6,962,960)            -     -    (7,052,230)    1
      Retained
       earnings           53,778,603    50,358,559     7    52,055,071     3
      Accumulated
       other
       comprehensive
       income (loss)      (4,770,367)    1,012,179  (571)   (5,311,666)   10
                          ----------     ---------  ----    ----------    --
    Total
     Shareholders'
     Equity              129,299,707    51,370,738   152   126,962,726     2
                         -----------    ----------   ---   -----------   ---
    Total Liabilities
     and
     Shareholders'
     Equity             $532,895,396  $430,052,819    24% $528,396,988     1%
                        ============  ============    ==  ============   ===



                         HOME BANCORP, INC. AND SUBSIDIARY
                           CONDENSED STATEMENTS OF INCOME

                                                             For The
                                                              Three
                                      For The                Months
                                Three Months Ended            Ended
                                     March 31,         %   December 31,   %
                                 2009       2008    Change     2008     Change
                                 ----       ----    ------     ----     ------
    Interest Income
      Loans, including fees  $5,521,750 $5,407,337     2%  $5,534,213     -%
      Investment securities   1,702,796    785,409   117    1,478,963    15
      Other investments
       and deposits             312,410    340,452    (8)     317,715    (2)
                                -------    -------    --      -------    --
        Total interest
         income               7,536,956  6,533,198    15    7,330,891     3
                              ---------  ---------    --    ---------   ---

    Interest Expense
      Deposits                1,427,272  2,387,019   (40)%  1,575,505    (9)%
      Federal Home Loan
       Bank advances            243,037    161,619    50      160,495    51
                                -------    -------    --      -------    --
        Total interest
         expense              1,670,309  2,548,638   (34)   1,736,000    (4)
                              ---------  ---------   ---    ---------    --
    Net interest income       5,866,647  3,984,560    47    5,594,891     5
    Provision for (reversal
     of) loan losses            173,662    (29,511) (688)     297,775   (42)
                                -------    -------  ----      -------   ---
    Net interest income
     after provision for
     (reversal of) loan
     losses                   5,692,985  4,014,071    42    5,297,116     7
                              ---------  ---------    --    ---------   ---

    Noninterest Income
      Service fees and
       charges                  454,706    406,253    12%     412,763    10%
      Bank card fees            260,724    207,481    26      250,911     4
      Gain on sale of
       loans, net               140,387     69,879   101       61,903   127
      Income from bank-owned
       life insurance            65,216     63,936     2       67,345    (3)
      Other-than-temporary
       impairment of
       securities                     -          -     -   (2,832,920)  100
      Other income               38,072     18,237   109       26,694    43
                                 ------     ------   ---       ------    --
        Total noninterest
         income                 959,105    765,786    25   (2,013,304)  148
                                -------    -------    --   ----------   ---

    Noninterest Expense
      Compensation
       and benefits           2,321,148  2,092,501    11%   2,359,437    (2)%
      Occupancy                 316,372    287,727    10      320,589    (1)
      Marketing and
       advertising              167,653    158,050     6      198,147   (15)
      Data processing
       and communication        345,266    337,760     2      352,752    (2)
      Professional fees         213,572     62,384   242      175,208    22
      ATM losses                      -          -     -      867,389  (100)
      Franchise and
       shares tax               226,250          -     -            -     -
      Other expenses            416,821    297,373    40      448,474    (7)
                                -------    -------    --      -------    --
        Total noninterest
         expense              4,007,082  3,235,795    24    4,721,996   (15)
                              ---------  ---------    --    ---------   ---
    Income (loss) before
     income tax expense
     (benefit)                2,645,008  1,544,062    71   (1,438,184)  284
    Income tax expense
     (benefit)                  921,476    524,981    76     (639,089)  244
                                -------    -------    --     --------   ---
    Net income (loss)        $1,723,532 $1,019,081    69%   $(799,095)  316%
                             ========== ==========    ==    =========   ===

    Earnings (loss) per
     share - basic                $0.21        N/A   N/A       $(0.10)  310%
                                  =====        ===   ===       ======   ===
    Earnings (loss) per
     share - diluted              $0.21        N/A   N/A       $(0.10)  310%
                                  =====        ===   ===       ======   ===

    NON-GAAP PRO FORMA NET
     INCOME
    Reported net income (loss)                              $(799,095)
    Add: OTTI charge
     (after tax)                                            1,869,700
    Add: ATM losses
     (after tax)                                              572,200
                                                              -------
    Non-GAAP net income                                    $1,642,805
                                                           ==========



                         HOME BANCORP, INC. AND SUBSIDIARY
                           SUMMARY FINANCIAL INFORMATION

                                                             For The
                                                              Three
                                      For The                Months
                                Three Months Ended            Ended
                                     March 31,         %   December 31,   %
                                 2009       2008    Change     2008     Change
                                 ----       ----    ------     ----     ------

    AVERAGE BALANCE SHEET DATA
    (dollars in thousands)
    Total assets               $525,560   $428,939    23%    $503,947     4%
    Total earning assets        497,174    401,597    24      488,294     2
    Loans                       339,528    309,906    10      327,951     4
    Interest bearing deposits   290,590    307,445    (5)     284,154     2
    Total deposits              357,472    358,899     -      367,935    (3)
    Total shareholders' equity  128,865     50,687   154      106,814    21

    SELECTED RATIOS (1)
    Return on average assets       1.31%      0.95%   38%       (0.63)  308%
    Return on average total
     equity                        5.35       8.04   (33)       (2.99)  279
    Efficiency ratio (2)          58.71      68.12   (14)      131.84   (55)
    Average equity to average
     assets                       24.52      11.82   107        21.20    16
    Core capital ratio (3)(4)     19.19      11.75    63        19.10     -
    Net interest margin (5)        4.72       3.97    19         4.58     3


                                   March     March           December
                                     31,       31,      %        31,     %
                                    2009      2008   Change     2008   Change
                                    ----      ----   ------     ----  --------
    CREDIT QUALITY
     (dollars in thousands)(3)(6)
    Nonaccrual loans             $2,489     $1,338     86%      $1,427    74%
    Accruing loans past due
     90 days and over                 -          -      -            -     -
                                    ---        ---                 ---
    Total nonperforming loans     2,489      1,338     86        1,427    74
    Other real estate owned          37         60    (38)          37     1
                                     --         --                  --
    Total nonperforming
     assets                      $2,526     $1,398     81       $1,464    73
                                 ======     ======              ======

    Nonperforming assets
     to total assets               0.47%      0.33%    42%        0.28%   68%
    Nonperforming loans
     to total assets               0.47       0.31     52         0.27    74
    Nonperforming loans to
     total loans                   0.74       0.43     72         0.43    72
    Allowance for loan losses
     to nonperforming assets      110.1      163.5    (33)       178.0   (38)
    Allowance for loan losses
     to nonperforming loans       111.7      170.7    (35)       182.6   (39)
    Allowance for loan losses
     to total loans                0.83       0.74     12         0.78     6

    Year-to-date loan
     charge-offs                     $2        $26    (92)%       $212   (99)%
    Year-to-date loan
     recoveries                       3         25    (88)          45   (93)
                                    ---         --                        --
    Year-to-date net
     loan charge-offs                (1)         1   (200)         167  (101)
                                     ==         ==                       ===
    Annualized YTD net loan
     charge-offs to total loans      -%(7)      -%(7)   -%        0.05  (100)%


    (1)  With the exception of end-of-period ratios, all ratios are based on
         average monthly balances during the respective periods.
    (2)  The efficiency ratio represents noninterest expense as a percentage
         of total revenues.  Total revenues is the sum of net interest income
         and noninterest income.
    (3)  Asset quality and capital ratios are end of period ratios.
    (4)  Capital ratios are Bank only.
    (5)  Net interest margin represents net interest income as a percentage
         of average interest-earning assets.
    (6)  Nonperforming loans consist of nonaccruing loans and loans 90 days
         or more past due.  Nonperforming assets consist of nonperforming
         loans and repossessed assets.  It is our policy to cease accruing
         interest on all loans 90 days or more past due.  Repossessed assets
         consist of assets acquired through foreclosure or acceptance of
         title in-lieu of foreclosure.
    (7)  Ratio is displayed as zero since calculated value is too low to be
         reported.

SOURCE Home Bancorp, Inc.



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