Home Bancorp Announces 2012 First Quarter Results

LAFAYETTE, La., April 24, 2012 /PRNewswire/ -- 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 $2.1 million for the first quarter of 2012, a decrease of $74,000, or 3%, compared to the fourth quarter of 2011 and an increase of $1.3 million, or 159%, compared to the first quarter of 2011.  Diluted earnings per share were $0.29 for the first quarter of 2012, compared to $0.30 for the fourth quarter of 2011 and $0.11 for the first quarter of 2011.

"We continue to benefit from the vibrancy of the South Louisiana economy," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank.  "In what has traditionally been a slow quarter for South Louisiana banks, our loan portfolio grew at an annualized rate of 7% during the first three months of 2012.  That growth was spread across each of our markets."

"Although the national economic landscape remains uncertain," added Mr. Bordelon, "our customers are focused on doing what they do best – creating jobs and moving Louisiana forward."

Acquisition of GS Financial Corp.

As previously reported, the Company completed the acquisition of GS Financial Corp. ("GSFC"), the former holding company of Guaranty Savings Bank of Metairie, Louisiana, on July 15, 2011.  As a result of the transaction, the Company acquired $256.7 million of assets, including loans of $182.4 million, and $230.6 million in deposits and other liabilities.  

Loans and Credit Quality

The Company's total loans were $678.7 million at March 31, 2012, an increase of $12.3 million, or 2%, from December 31, 2011, and an increase of $236.7 million, or 54%, from March 31, 2011.  First quarter 2012 loan growth related primarily to commercial real estate loans (up $11.0 million) and construction and land loans (up $7.1 million).  These increases were partially offset by decreases in one- to four-family first mortgage loans (down $4.0 million), home equity loans and lines (down $2.3 million) and commercial and industrial loans (down $1.1 million). 

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)


2012


2011


Amount

Percent


Real estate loans:









     One- to four-family first mortgage

$

178,826

$

182,817

$

(3,991)

(2)

%

     Home equity loans and lines


41,337


43,665


(2,328)

(5)


     Commercial real estate


238,019


226,999


11,020

5


     Construction and land


86,108


78,994


7,114

9


     Multi-family residential


19,849


20,125


(276)

(1)


        Total real estate loans


564,139


552,600


11,539

2


Other loans:









     Commercial and industrial


81,930


82,980


(1,050)

(1)


     Consumer


32,582


30,791


1,791

6


        Total other loans


114,512


113,771


741

1


        Total loans

$

678,651

$

666,371

$

12,280

2

%

 

Nonperforming assets ("NPAs"), which include $15.6 million in assets covered under loss sharing agreements with the FDIC ("Covered Assets"), totaled $34.1 million at March 31, 2012, an increase of $3.6 million compared to December 31, 2011 and an increase of $12.1 million compared to March 31, 2011.    Excluding Covered Assets, the ratio of NPAs to total assets was 2.01% at March 31, 2012, compared to 1.55% at December 31, 2011 and 0.19% at March 31, 2011.  The increase in NPAs during the first quarter of 2012 relates primarily to a $5.4 million commercial real estate loan which was placed on nonaccrual status during the quarter.  The increase in NPAs compared to the first quarter of 2011 was due primarily to the NPAs acquired through our acquisition of GSFC in July 2011.  NPAs acquired from GSFC totaled $9.6 million at the date of acquisition.

The Company recorded net loan charge-offs of $3,000 during the first quarter of 2012, compared to net loan recoveries of $7,000 in the fourth quarter of 2011 and net loan charge-offs of $3,000 during the first quarter of 2011. 

The Company's provision for loan losses for the first quarter of 2012 was $712,000, compared to $568,000 for the fourth quarter of 2011 and $102,000 for the first quarter of 2011.  The increases compared to the fourth and first quarters of 2011 are primarily attributable to the nonperforming commercial real estate loan mentioned above, modest downgrades of certain other loans and loan growth.

At March 31, 2012, the Company's ratio of allowance for loan losses to total loans was 0.86%, compared to 0.77% and 0.91% at December 31, 2011 and March 31, 2011, respectively.  The increase in the ratio of allowance for loan losses to total loans during the first quarter was due to downgrades of certain loans described above and loan growth.  The decrease in the first quarter 2012 ratio of allowance for loan losses to total loans compared to first quarter 2011 relates primarily to the acquisition of GSFC's loans.  Under accounting rules generally accepted in the United States, an acquirer may not carry over the acquiree's allowance for loan losses.  Instead, the acquirer must estimate the fair value of the cash flows expected to be derived from the acquired loan portfolio.  Management has included its credit loss expectations in the acquired loan portfolio's cash flow assumptions used to derive the portfolio's fair value.  Hence, management believes that expected credit losses in the acquired loan portfolio have been appropriately addressed in the fair value adjustments recorded on the acquired loan portfolio.  Ongoing evaluations of the acquired loan portfolio may result in additional provisions for the acquired loans.  Excluding acquired loans, the ratio of allowance for loan losses to total loans was 1.22% at March 31, 2012, compared to 1.14% at December 31, 2011 and 1.10% at March 31, 2011. 

Investment Securities Portfolio

The Company's investment securities portfolio totaled $164.1 million at March 31, 2012, an increase of $5.3 million, or 3%, from December 31, 2011, and an increase of $22.4 million, or 16%, from March 31, 2011.  At March 31, 2012, the Company had a net unrealized gain position on its investment securities portfolio of $4.0 million, compared to a net unrealized gain of $2.6 million and a net unrealized gain of $1.6 million at December 31, 2011 and March 31, 2011, respectively.  At March 31, 2012, the investment securities portfolio had a modified duration of 3.2 years.

The Company maintains a portfolio of non-agency mortgage-backed securities, which had an amortized cost of $14.3 million at March 31, 2012.  Each of these securities is rated investment grade by Standard & Poor's and/or Moody's.

Deposits

Core deposits (i.e., checking, savings and money market accounts) increased for the eleventh consecutive quarter, posting growth of $12.6 million, or 3%, during the first three months of 2012.  Total deposits were $736.2 million at March 31, 2012, an increase of $5.4 million, or 1%, from December 31, 2011, and an increase of $192.5 million, or 35%, from March 31, 2011.  The Company acquired $193.5 million in deposits through the acquisition of GSFC in July 2011.      

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)


2012


2011


Amount

Percent


Demand deposit

$

135,600

$

127,828

$

7,772

6

%

Savings


46,569


43,671


2,898

7


Money market


182,442


180,790


1,652

1


NOW


93,970


93,679


291

-


Certificates of deposit


277,576


284,766


(7,190)

(3)


        Total deposits

$

736,157

$

730,734

$

5,423

1

%

Share Repurchases

The Company purchased 4,590 shares of its common stock during the first quarter of 2012 at an average price per share of $15.91 under the share repurchase plan announced in May 2011.  The Company may repurchase up to 402,835 shares, or approximately 5%, of the Company's outstanding common stock under the May 2011 plan.  As of April 19, 2012, the Company has purchased 313,865 shares under the plan at an average price per share of $14.62; hence, 88,970 additional shares remain eligible for purchase under the plan.  The tangible book value per share of the Company's common stock was $17.42 at March 31, 2012.

Net Interest Income

Net interest income for the first quarter of 2012 totaled $10.0 million, essentially unchanged compared to the fourth quarter of 2011, and an increase of $3.1 million, or 45%, compared to the first quarter of 2011.  The addition of GSFC's interest-earning assets and interest-bearing liabilities accounted for the vast majority of the increase compared to the same quarter last year.  The Company's net interest margin was 4.69% for the first quarter of 2012, three basis points higher than the fourth quarter of 2011 and two basis points higher than the first quarter of 2011.  

The following table sets forth the Company's average volume and rate of its interest-earning assets and interest-bearing liabilities for the periods indicated.

















For the Three Months Ended




March 31, 2012



December 31, 2011



March 31, 2011



(dollars in thousands)


Average Balance

Average Yield/Rate



Average Balance

Average Yield/Rate



Average Balance

Average Yield/Rate



Interest-earning assets:














Loans receivable

$

672,713

6.20

%

$

662,307

6.26

%

$

439,490

6.59

%


Investment securities


155,476

2.21



162,367

2.18



130,607

2.94



Other interest-earning assets


25,160

0.55



26,026

0.56



24,423

0.61



Total interest-earning assets


853,349

5.31



850,700

5.30



594,520

5.55

















Interest-bearing liabilities:














Deposits:














Savings, checking, and money market


316,004

0.45



314,334

0.46



233,440

0.53



Certificates of deposit


282,476

1.11



284,169

1.16



209,734

1.69



Total interest-bearing deposits


598,480

0.76



598,503

0.79



443,174

1.08



FHLB advances


101,473

0.71



103,011

0.75



15,280

2.64



Total interest-bearing liabilities

$

699,953

0.75


$

701,515

0.79


$

458,454

1.13

















Net interest spread



4.56

%



4.52

%



4.42

%


Net interest margin



4.69

%



4.66

%



4.67

%


























Noninterest Income

Noninterest income for the first quarter of 2012 totaled $1.7 million, a decrease of $158,000, or 9%, compared to the fourth quarter of 2011 and an increase of $478,000, or 39%, compared to the first quarter of 2011.  The decrease in noninterest income in the first quarter of 2012 compared to the fourth quarter of 2011 resulted primarily from lower gains on the sale of mortgage loans of $194,000

The increase in noninterest income in the first quarter of 2012 compared to the first quarter of 2011 was primarily the result of increased gains on the sale of mortgage loans of $222,000 and the absence of losses on the sale of securities, which totaled $166,000 during the first quarter of 2011.  Additionally, service fees and charges and bank card fees increased when comparing the first quarter of 2012 to the first quarter of 2011 as a result of the accounts added through our acquisition of GSFC and organic customer growth.    

Noninterest Expense

Noninterest expense for the first quarter of 2012 totaled $7.8 million, a decrease of $274,000, or 3%, compared to the fourth quarter of 2011 and an increase of $1.1 million, or 16%, compared the first quarter of 2011.  The decrease in noninterest expense in the first quarter of 2012 compared to the fourth quarter of 2011 resulted primarily from a decrease in marketing and advertising expenses of $161,000 and occupancy expenses of $105,000

The increase in noninterest expense in the first quarter of 2012 compared to the first quarter of 2011 was primarily due to higher compensation and benefits, occupancy and data processing and communication expenses primarily reflecting our increase in offices and employees as a result of the GSFC acquisition.  Additionally, expenses related to foreclosed assets increased during the first quarter of 2012 compared to the same quarter a year ago due primarily to resolution costs related to NPAs acquired in the GSFC acquisition. 

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 acquired loans. Management believes the presentation of this non-GAAP financial information provides useful information that is essential to a proper 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.

This news release contains certain forward‑looking statements. Forward‑looking 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."

Forward‑looking 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 forward‑looking statements.  Home Bancorp's Annual Report on Form 10-K for the year ended December 31, 2011, 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. Forward‑looking statements speak only as of the date they are made.  We do not undertake to update forward‑looking statements to reflect circumstances or events that occur after the date the forward‑looking statements are made or to reflect the occurrence of unanticipated events.

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF FINANCIAL CONDITION




















March 31,


March 31,


%



December 31,


2012


2011


Change



2011

Assets









Cash and cash equivalents

$   33,800,736


$   22,466,923


50

%


$   31,272,508

Interest-bearing deposits in banks

4,754,000


8,857,000


(46)



5,583,000

Investment securities available for sale, at fair value

161,000,461


133,933,288


20



155,259,978

Investment securities held to maturity

3,064,866


7,764,023


(61)



3,461,717

Mortgage loans held for sale

1,794,119


560,991


220



1,672,597

Loans covered by loss sharing agreements

56,111,387


75,996,118


(26)



61,070,360

Noncovered loans, net of unearned income

622,539,181


366,003,288


70



605,301,127

     Total loans

678,650,568


441,999,406


54



666,371,487

Allowance for loan losses

(5,813,095)


(4,019,285)


45



(5,104,363)

     Total loans, net of allowance for loan losses

672,837,473


437,980,121


54



661,267,124

FDIC loss sharing receivable

24,399,699


31,030,272


(21)



24,222,190

Office properties and equipment, net

30,724,675


23,216,809


32



31,763,692

Cash surrender value of bank-owned life insurance

16,902,453


16,338,064


3



16,771,174

Accrued interest receivable and other assets

30,275,634


18,327,587


65



32,515,158

Total Assets

$ 979,554,116


$ 700,475,078


40



$ 963,789,138



















Liabilities









Deposits

$ 736,157,230


$ 543,619,256


35

%


$ 730,733,755

Federal Home Loan Bank advances

100,848,030


21,000,000


380



93,622,954

Accrued interest payable and other liabilities

4,827,764


3,281,323


47



5,147,595

Total Liabilities

841,833,024


567,900,579


48



829,504,304










Shareholders' Equity









Common stock

89,404


89,270


-

%


89,335

Additional paid-in capital

90,230,748


89,183,147


1



89,741,406

Treasury stock

(15,965,319)


(11,028,575)


45



(15,892,315)

Common stock acquired by benefit plans

(8,531,519)


(9,676,562)


(12)



(8,625,513)

Retained earnings 

69,305,807


62,920,252


10



67,245,350

Accumulated other comprehensive income 

2,591,971


1,086,967


138



1,726,571

Total Shareholders' Equity

137,721,092


132,574,499


4



134,284,834

Total Liabilities and Shareholders' Equity

$     979,554,116


$     700,475,078


40



$     963,789,138











 

 

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME
























 For The Three Months Ended 





 For The Three 





 March 31, 

%



 Months Ended 


%



2012

2011


Change



 December 31, 2011 


Change


Interest Income











Loans, including fees

$   10,371,357

$   7,160,653


45

%


$             10,450,022


(1)

%

Investment securities

859,482

960,821


(11)



883,979


(3)


Other investments and deposits

34,398

36,721


(6)



36,803


(7)


Total interest income

11,265,237

8,158,195


38



11,370,804


(1)













Interest Expense











Deposits

1,131,848

1,177,048


(4)

%


1,194,653


(5)

%

Federal Home Loan Bank advances

180,836

100,640


80



194,407


(7)


Total interest expense

1,312,684

1,277,688


3



1,389,060


(5)


Net interest income

9,952,553

6,880,507


45



9,981,744


-


Provision for loan losses

711,900

102,276


596



567,968


25


Net interest income after provision for loan losses

9,240,653

6,778,231


36



9,413,776


(2)













Noninterest Income











Service fees and charges

569,941

474,824


20

%


538,368


6

%

Bank card fees

468,284

398,094


18



443,407


6


Gain on sale of loans, net

326,171

104,393


212



520,493


(37)


Income from bank-owned life insurance

131,279

145,419


(10)



142,561


(8)


Gain (loss) on the sale of securities, net

168

(166,082)


100



(4,706)


104


Discount accretion of FDIC loss sharing receivable

177,510

238,669


(26)



187,799


(5)


Other income

26,562

26,583


-



30,461


(13)


Total noninterest income

1,699,915

1,221,900


39



1,858,383


(9)













Noninterest Expense











Compensation and benefits

4,695,709

3,998,408


17

%


4,692,503


-

%

Occupancy

694,941

565,261


23



799,493


(13)


Marketing and advertising

151,474

161,050


(6)



312,733


(52)


Data processing and communication

672,341

541,507


24



713,701


(6)


Professional fees

232,253

419,732


(45)



203,524


14


Forms, printing and supplies

126,266

113,980


11



139,997


(10)


Franchise and shares tax

175,651

180,500


(3)



93,783


87


Regulatory fees

198,158

229,739


(14)



169,375


17


Foreclosed assets, net

267,998

48,134


457



242,590


10


Other expenses

594,031

448,811


32



715,087


(17)


Total noninterest expense

7,808,822

6,707,122


16



8,082,786


(3)


Income before income tax expense

3,131,746

1,293,009


142



3,189,373


(2)


Income tax expense

1,071,289

498,325


115



1,055,122


2


Net income

$     2,060,457

$     794,684


159



$               2,134,251


(3)













Earnings per share - basic

$            0.30

$          0.11


173

%


$                      0.31


(3)

%

Earnings per share - diluted

$            0.29

$          0.11


164



$                      0.30


(3)
























 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION




























 For The Three Months Ended 





 For The Three  






 March 31, 


%



 Months Ended 



%



2012


2011


 Change 



 December 31, 2011 



 Change 


(dollars in thousands except per share data)













EARNINGS DATA













Total interest income

$   11,265


$     8,158


38

%


$                   11,371



(1)

%

Total interest expense

1,313


1,278


3



1,389



(5)


Net interest income

9,952


6,880


45



9,982



-


Provision for loan losses

712


102


598



568



25


Total noninterest income

1,700


1,222


39



1,858



(9)


Total noninterest expense

7,809


6,707


16



8,083



(3)


Income tax expense

1,071


498


115



1,055



2


Net income

$     2,060


$       795


159



$                    2,134



(3)















AVERAGE BALANCE SHEET DATA













Total assets

$ 965,682


$ 692,755


39

%


$                 965,357



-

%

Total interest-earning assets

853,349


594,520


44



850,700



-


Totals loans

672,713


439,490


53



662,307



2


Total interest-bearing deposits

598,480


443,174


35



598,503



-


Total interest-bearing liabilities

699,953


458,454


53



701,515



-


Total deposits

724,752


543,323


33



724,357



-


Total shareholders' equity

135,975


131,994


3



133,899



2















SELECTED RATIOS (1)













Return on average assets

0.85

%

0.46

%

85

%


0.88

%


(3)

%

Return on average equity

6.06


2.41


151



6.38



(5)


Efficiency ratio (2)

67.01


82.78


(19)



68.27



(2)


Average equity to average assets

14.08


19.05


(26)



13.87



2


Tier 1 leverage capital ratio(3) 

12.59


15.59


(19)



12.52



1


Total risk-based capital ratio(3) 

20.82


24.86


(16)



21.08



(1)


Net interest margin (4)

4.69


4.67


-



4.66



1















PER SHARE DATA













Basic earnings per share

$      0.30


$      0.11


173

%


$                      0.31



(3)

%

Diluted earnings per share

0.29


0.11


164



0.30



(3)


Book value at period end

17.74


16.39


8



17.30



3


Tangible book value at period end

17.42


16.18


8



16.96



3















PER SHARE DATA













Shares outstanding at period end

7,762,204


8,087,159


(4)

%


7,759,954



-

%

Weighted average shares outstanding













   Basic

6,952,952


7,177,377


(3)

%


6,882,206



1

%

   Diluted

7,196,444


7,277,013


(1)



7,033,984



2















(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)  Capital ratios are end of period ratios for the Bank only.












(4)  Net interest margin represents net interest income as a percentage of average interest-earning assets.






















HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY CREDIT QUALITY INFORMATION












































March 31, 2012


December 31, 2011


March 31, 2011


Covered

Noncovered

Total


Covered

Noncovered

Total


Covered

Noncovered

Total

(dollars in thousands)





















CREDIT QUALITY(1)  (2)





















Nonaccrual loans

$10,456


$15,759


$26,215



$10,460


$11,007


$21,467



$15,479


$ 1,090


$16,569


Accruing loans past due 90 days and over

-


-


-



-


-


-



-


-


-


Total nonperforming loans

10,456


15,759


26,215



10,460


11,007


21,467



15,479


1,090


16,569


Other real estate owned

5,168


2,675


7,843



6,096


2,868


8,964



5,281


92


5,373


Total nonperforming assets

15,624


18,434


34,058



16,556


13,875


30,431



20,760


1,182


21,942


Performing troubled debt restructurings

25


543


568



26


572


598



-


1,067


1,067


Total nonperforming assets and troubled 





















debt restructurings

$15,649


$18,977


$34,626



$16,582


$14,447


$31,029



$20,760


$2,249


$23,009























Nonperforming assets to total assets





3.48

%






3.16

%






3.13

%

Nonperforming loans to total assets 





2.68







2.23







2.37


Nonperforming loans to total loans 





3.86







3.22







3.75


Allowance for loan losses to nonperforming assets





17.07







16.77







18.32


Allowance for loan losses to nonperforming loans





22.18







23.78







24.26


Allowance for loan losses to total loans





0.86







0.77







0.91























Year-to-date loan charge-offs





$       15







$     334







$        9


Year-to-date loan recoveries





12







58







6


Year-to-date net loan charge-offs





$        3







$     276







$        3


Annualized YTD net loan charge-offs to total loans





-

%






0.04

%






-

%
































































(1)  Nonperforming loans consist of nonaccruing loans and accruing 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 loans 90 days or more past due. Repossessed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure.
























(2)  Asset quality information includes assets covered under FDIC loss sharing agreements. Such assets covered by FDIC loss sharing agreements are referred  to as "Covered" assets. All other assets are referred to as "Noncovered".

























 

 

 

SOURCE Home Bancorp, Inc.



RELATED LINKS
http://www.home24bank.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.