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Home Bancorp Announces 2012 Fourth Quarter And Annual Results

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LAFAYETTE, La., Jan. 29, 2013 /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 $2.3 million for the fourth quarter of 2012, a decrease of $728,000, or 24%, compared to the third quarter of 2012 and an increase of $190,000, or 9%, compared to the fourth quarter of 2011.  Diluted earnings per share were $0.33 for the fourth quarter of 2012, a decrease of $0.09, or 21%, compared to the third quarter of 2012 and an increase of $0.03, or 10%, compared to the fourth quarter of 2011. 

Net income for the year ended December 31, 2012 was $9.2 million, an increase of $4.1 million, or 79%, compared to 2011.  Diluted earnings per share for 2012 were $1.28, an increase of 80% compared to $0.71 in 2011.  Excluding merger-related expenses of $2.1 million (pre-tax) incurred in 2011 due to the acquisition of GS Financial Corp. ("GSFC"), net income increased $2.7 million, or 42%, compared to 2011.  Excluding merger-related expenses, diluted earnings per share increased $0.38, or 42%, compared 2011.  

"In our first year without an acquisition since 2009, we focused our attention on enhancing our customers' experience and improving internal processes," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank.  "We're pleased with the progress we made in 2012, and expect to build on our momentum in 2013."

"Although we continue to face the challenges posed by the national economy, as well as other industry-wide factors which are not fully within our control, we greet 2013 with optimism," added Mr. Bordelon, "largely because, through their experience and hard work, the people and businesses of South Louisiana continue to press forward."

Loans and Credit Quality

Loans totaled $673.1 million at December 31, 2012, an increase of $2.5 million, or 0.4%, from September 30, 2012, and an increase of $6.8 million, or 1%, from December 31, 2011.  During the fourth quarter, increases in construction and land (up $12.2 million), one-to four-family first mortgage (up $3.1 million), commercial and industrial (up $1.5 million), and consumer (up $1.0 million) loan portfolios were largely offset by maturities and paydowns in the commercial real estate loan portfolio (down $15.9 million).   

The following table sets forth the composition of the Company's loan portfolio (including loans covered by loss sharing agreements) as of the dates indicated. 










December 31,


December 31,


Increase/(Decrease)


(dollars in thousands)


2012


2011


Amount

Percent


Real estate loans:









     One- to four-family first mortgage

$

177,816

$

182,817

$

(5,001)

(3)

%

     Home equity loans and lines


40,425


43,665


(3,240)

(7)


     Commercial real estate


252,805


226,999


25,806

11


     Construction and land


75,529


78,994


(3,465)

(4)


     Multi-family residential


19,659


20,125


(466)

(2)


        Total real estate loans


566,234


552,600


13,634

2


Other loans:









     Commercial and industrial


72,253


82,980


(10,727)

(13)


     Consumer


34,641


30,791


3,850

13


        Total other loans


106,894


113,771


(6,877)

(6)


        Total loans

$

673,128

$

666,371

$

6,757

1

%

Nonperforming assets ("NPAs"), which includes $12.3 million in assets covered under loss sharing agreements with the FDIC ("Covered Assets") and $11.2 million acquired from GSFC, totaled $28.4 million at December 31, 2012, a decrease of $1.8 million compared to September 30, 2012 and a decrease of $2.0 million compared to December 31, 2011.  The ratio of total NPAs to total assets was 2.95% at December 31, 2012, compared to 3.10% at September 30, 2012 and 3.16% at December 31, 2011.  Excluding acquired assets, the ratio of NPAs was 0.62% at December 31, 2012, compared to 0.86% at September 30, 2012 and 0.54% at December 31, 2011. 

The Company recorded net loan charge-offs of $70,000 during the fourth quarter of 2012, compared to net loan charge-offs of $464,000 in the third quarter of 2012 and net loan recoveries of $7,000 in the fourth quarter of 2011, respectively.  The Company's provision for loan losses for the fourth quarter of 2012 was $483,000, compared to $56,000 for the third quarter of 2012 and $568,000 for the fourth quarter of 2011.  The provision for loan losses in the fourth quarter of 2012 relates primarily to modest downgrades of certain loans in the Company's organic loan portfolio and decreased cash flow expectations in the acquired GSFC one- to four-family first mortgage portfolio. 

The ratio of allowance for loan losses to total loans was 0.79% at December 31, 2012, compared to 0.73% and 0.77% at September 30, 2012 and December 31, 2011, respectively.  Excluding acquired loans, the ratio of the allowance for loan losses to total loans was 1.01% at December 31, 2012, compared to 1.01% at September 30, 2012 and 1.14% at December 31, 2011.           

Investment Securities Portfolio

The Company's investment securities portfolio totaled $158.9 million at December 31, 2012, an increase of $3.9 million, or 3%, from September 30, 2012, and an increase of $199,000, or 0.1%, from December 31, 2011.  At December 31, 2012, the Company had a net unrealized gain position on its investment securities portfolio of $5.0 million, compared to net unrealized gains of $5.2 million and $2.6 million at September 30, 2012 and December 31, 2011, respectively.  At December 31, 2012, the investment securities portfolio had a modified duration of 3.7 years.

Deposits

At December 31, 2012, core deposits (i.e., checking, savings and money market accounts) decreased $2.7 million, or 1%, from September 30, 2012, and increased $72.5 million, or 16.3%, from December 31, 2011.  Total deposits were $771.4 million at December 31, 2012, a decrease of $13.5 million, or 2%, from September 30, 2012, and an increase of $40.7 million, or 6%, from December 31, 2011.       

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










December 31,


December 31,


Increase / (Decrease)


(dollars in thousands)


2012


2011


Amount

Percent


Demand deposit

$

152,462

$

127,828

$

24,634

19

%

Savings


51,515


43,671


7,844

18


Money market


191,191


180,790


10,401

6


NOW


123,294


93,679


29,615

32


Certificates of deposit


252,967


284,766


(31,799)

(11)


        Total deposits

$

771,429

$

730,734

$

40,695

6

%










Share Repurchases

The Company purchased 75,533 shares of its common stock during the fourth quarter of 2012 at an average price per share of $17.93 under the share repurchase plan announced in July 2012.  The Company may repurchase up to 383,598 shares, or approximately 5%, of the Company's outstanding common stock under the July 2012 plan.  As of January 23, 2013, the Company has purchased 239,662 shares under the plan at an average price per share of $17.37; hence, an additional 143,936 shares remain eligible for purchase under the plan.  The tangible book value per share of the Company's common stock was $18.73 at December 31, 2012.     

Net Interest Income

Net interest income for the fourth quarter of 2012 totaled $10.4 million, a decrease of $544,000, or 5%, compared to the third quarter of 2012, and an increase of $390,000, or 4%, compared to the fourth quarter of 2011.  The decline in net interest income in the fourth quarter of 2012 compared to the third quarter of 2012 was due largely to a decline in loan interest income.  The decrease in loan interest income resulted primarily from lower levels of interest accretion in the acquired loan portfolios, less loan fee accretion and lower average loan balances. 

The Company's net interest margin was 4.73% for the fourth quarter of 2012, 21 basis points lower than the third quarter of 2012 and 11 basis points higher than the fourth quarter of 2011.  The decrease in the net interest margin compared to the third quarter of 2012 related primarily to lower loan yields as described above.  The increase in net interest margin compared to the fourth quarter of 2011 related primarily to lower costs on interest bearing liabilities.  

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




December 31, 2012



September 30, 2012



December 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

$

673,428

6.28

%

$

678,936

6.55

%

$

662,429

6.21

%


Investment securities


149,294

1.95



149,472

2.06



162,367

2.18



Other interest-earning assets


41,057

0.43



41,373

0.40



26,026

0.56



Total interest-earning assets


863,779

5.25



869,781

5.49



850,822

5.27

















Interest-bearing liabilities:














Deposits:














Savings, checking, and money market


361,862

0.33



355,107

0.34



314,694

0.46



Certificates of deposit


257,750

1.04



269,840

1.08



284,169

1.16



Total interest-bearing deposits


619,612

0.63



624,947

0.66



598,863

0.79



FHLB advances


40,796

1.58



48,175

1.39



103,011

0.75



Total interest-bearing liabilities

$

660,408

0.68


$

673,122

0.71


$

701,874

0.79

















Net interest spread



4.57

%



4.78

%



4.48

%


Net interest margin



4.73

%



4.94

%



4.62

%


























Noninterest Income

Noninterest income for the fourth quarter of 2012 totaled $1.8 million, a decrease of $321,000, or 15%, compared to the third quarter of 2012 and a decrease of $93,000, or 5%, compared to the fourth quarter of 2011.  The decrease in noninterest income in the fourth quarter of 2012 compared to the third quarter of 2012 resulted primarily from the absence of gains on sale of securities of $163,000 recorded during the third quarter and decreases in gains on the sale of mortgage loans, service fees and charges and bank card fees. 

The decrease in noninterest income in the fourth quarter of 2012 compared to the fourth quarter of 2011 resulted primarily from decreases in discount accretion on FDIC loss sharing receivable, service fees and charges and bank card fees offset by higher gains on the sale of mortgage loans.    

Noninterest Expense

Noninterest expense for the fourth quarter of 2012 totaled $8.2 million, a decrease of $176,000, or 2%, compared to the third quarter of 2012 and an increase of $131,000, or 2%, compared to the fourth quarter of 2011.  The decrease in noninterest expense in the fourth quarter of 2012 compared to the third quarter of 2012 resulted primarily from lower than anticipated Louisiana shares tax payments (down $349,000), which was partially offset by higher data processing and communication (up $73,000), compensation and benefits (up $71,000), and foreclosed asset expenses (up $44,000). 

Non-GAAP Reconciliation





For the Years Ended

(dollars in thousands)

December 31, 2012

December 31, 2011




Reported noninterest expense

$    32,454

$30,783

Less: Merger-related expenses

-

(2,051)

Non-GAAP noninterest expense

$    32,454

$28,732




Reported net income

$      9,190

$  5,120

Add: Merger-related expenses (after tax)

-

1,354

Non-GAAP net income

$      9,190

$  6,474




Diluted EPS

$        1.28

$    0.72

Less: Merger-related expenses

-

0.18

Non-GAAP EPS

$        1.28

$    0.90

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 and the impact of merger-related expenses. 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




















December 31,


December 31,


%



September 30,


2012


2011


Change



2012

Assets









Cash and cash equivalents

$   39,539,366


$   31,769,438


24

%


$   52,307,703

Interest-bearing deposits in banks

3,529,000


5,583,000


(37)



4,019,000

Investment securities available for sale, at fair value

157,255,828


155,259,978


1



153,006,535

Investment securities held to maturity

1,665,184


3,461,717


(52)



2,049,718

Mortgage loans held for sale

5,627,104


1,672,597


236



5,572,587

Loans covered by loss sharing agreements

45,764,397


61,070,360


(25)



49,500,917

Noncovered loans, net of unearned income

627,363,937


605,301,127


4



621,157,286

     Total loans

673,128,334


666,371,487


1



670,658,203

Allowance for loan losses

(5,319,235)


(5,104,363)


4



(4,906,292)

     Total loans, net of allowance for loan losses

667,809,099


661,267,124


1



665,751,911

FDIC loss sharing receivable

15,545,893


24,222,190


(36)



16,813,909

Office properties and equipment, net

30,777,184


31,763,692


(3)



30,910,746

Cash surrender value of bank-owned life insurance

17,286,434


16,771,174


3



17,157,946

Accrued interest receivable and other assets

23,891,172


32,018,228


(25)



26,720,243

Total Assets

$ 962,926,264


$ 963,789,138


-



$ 974,310,298



















Liabilities









Deposits

$ 771,429,335


$ 730,733,755


6

%


$ 784,941,867

Federal Home Loan Bank advances

46,256,805


93,622,954


(51)



43,440,343

Accrued interest payable and other liabilities

3,666,264


5,147,595


(29)



5,717,129

Total Liabilities

821,352,404


829,504,304


(1)



834,099,339










Shareholders' Equity









Common stock

89,506


89,335


-

%


89,483

Additional paid-in capital

90,986,820


89,741,406


1



90,513,760

Treasury stock

(21,719,954)


(15,892,315)


37



(20,365,995)

Common stock acquired by benefit plans

(7,455,669)


(8,625,513)


(14)



(7,544,939)

Retained earnings 

76,435,222


67,245,350


14



74,110,812

Accumulated other comprehensive income 

3,237,935


1,726,571


88



3,407,838

Total Shareholders' Equity

141,573,860


134,284,834


5



140,210,959

Total Liabilities and Shareholders' Equity

$ 962,926,264


$ 963,789,138


-



$ 974,310,298

 

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME


























 For The Three Months Ended 




 For The Years Ended 




 December 31, 

%



 December 31, 

%



2012

2011


Change



2012

2011


Change


Interest Income












Loans, including fees

$     10,734,365

$       10,450,022


3

%


$   42,797,878

$ 34,604,712


24

%

Investment securities

728,597

883,979


(18)



3,169,429

3,686,134


(14)


Other investments and deposits

43,951

36,803


19



154,820

144,346


7


Total interest income

11,506,913

11,370,804


1



46,122,127

38,435,192


20














Interest Expense












Deposits

974,361

1,194,653


(18)

%


4,227,495

4,626,198


(9)

%

Federal Home Loan Bank advances

160,787

194,407


(17)



686,374

590,972


16


Total interest expense

1,135,148

1,389,060


(18)



4,913,869

5,217,170


(6)


Net interest income

10,371,765

9,981,744


4



41,208,258

33,218,022


24


Provision for loan losses

483,251

567,968


(15)



2,411,214

1,460,427


65


Net interest income after provision for loan losses

9,888,514

9,413,776


5



38,797,044

31,757,595


22














Noninterest Income












Service fees and charges

495,372

538,368


(8)

%


2,184,246

2,160,706


1

%

Bank card fees

399,282

443,407


(10)



1,795,960

1,737,554


3


Gain on sale of loans, net

567,804

520,493


9



1,963,365

910,165


116


Income from bank-owned life insurance

128,487

142,561


(10)



515,260

578,529


(11)


Gain (loss) on the sale of securities, net

-

(4,706)


100



221,781

(170,788)


230


Discount accretion of FDIC loss sharing receivable

119,087

187,799


(37)



580,980

851,080


(32)


Settlement of litigation

-

-


-



-

525,000


-


Other income

55,418

30,461


82



190,291

188,749


1


Total noninterest income

1,765,450

1,858,383


(5)



7,451,883

6,780,995


10














Noninterest Expense












Compensation and benefits

5,118,250

4,692,503


9

%


19,687,444

17,821,501


10

%

Occupancy

689,774

799,493


(14)



2,809,039

2,633,558


7


Marketing and advertising

205,051

312,733


(34)



743,814

980,557


(24)


Data processing and communication

767,345

713,701


8



2,801,124

3,141,776


(11)


Professional fees

189,175

203,524


(7)



890,205

1,378,504


(35)


Forms, printing and supplies

100,006

139,997


(29)



477,924

542,079


(12)


Franchise and shares tax

(43,458)

93,783


(146)



613,733

675,801


(9)


Regulatory fees

224,673

169,375


33



854,041

857,990


-


Foreclosed assets, net

292,584

242,590


21



1,051,397

471,637


123


Other expenses

669,918

715,087


(6)



2,525,404

2,279,995


11


Total noninterest expense

8,213,318

8,082,786


2



32,454,125

30,783,398


5


Income before income tax expense

3,440,646

3,189,373


8



13,794,802

7,755,192


78


Income tax expense

1,116,236

1,055,122


6



4,604,930

2,635,411


75


Net income

$     2,324,410

$       2,134,251


9



$   9,189,872

$  5,119,781


79














Earnings per share - basic

$              0.34

$                0.31


10

%


$            1.33

$          0.72


85

%

Earnings per share - diluted

$              0.33

$                0.30


10



$            1.28

$          0.71


80


 

 


HOME BANCORP, INC. AND SUBSIDIARY


SUMMARY FINANCIAL INFORMATION































 For The Three Months Ended 





 For The Three  






 December 31, 


%



 Months Ended 


%




2012


2011


 Change 



 September 30, 2012 


 Change 



(dollars in thousands except per share data)














EARNINGS DATA














Total interest income

$11,507


$11,371


1

%


$12,120



(5)

%


Total interest expense

1,135


1,389


(18)



1,204



(6)



Net interest income

10,372


9,982


4



10,916



(5)



Provision for loan losses

483


568


(15)



56



763



Total noninterest income

1,765


1,858


(5)



2,087



(15)



Total noninterest expense

8,213


8,083


2



8,389



(2)



Income tax expense

1,116


1,055


6



1,506



(26)



Net income

$2,325


$2,134


9



$3,052



(24)

















AVERAGE BALANCE SHEET DATA














Total assets

$969,182


$965,357


-

%


$974,761



(1)

%


Total interest-earning assets

863,780


850,822


2



869,781



(1)



Totals loans

673,428


662,429


2



678,936



(1)



Total interest-bearing deposits

619,612


598,863


3



624,947



(1)



Total interest-bearing liabilities

660,408


701,874


(6)



673,122



(2)



Total deposits

783,522


724,717


8



783,542



-



Total shareholders' equity

141,457


133,899


6



140,548



1

















SELECTED RATIOS (1)














Return on average assets

0.96

%

0.88

%

9

%


1.25

%


(23)

%


Return on average equity

6.57


6.38


3



8.69



(24)



Efficiency ratio (2)

67.67


68.27


(1)



64.52



5



Average equity to average assets

14.60


13.87


5



14.42



1



Tier 1 leverage capital ratio(3) 

13.67


12.53


9



13.23



3



Total risk-based capital ratio(3) 

21.83


21.13


3



21.39



2



Net interest margin (4)

4.73


4.62


2



4.94



(4)

















PER SHARE DATA














Basic earnings per share

$0.34


$.31


10

%


$0.44



(23)

%


Diluted earnings per share

0.33


0.30


10



0.42



(21)



Book value at period end

19.03


17.30


10



18.66



2



Tangible book value at period end

18.73


16.96


10



18.35



2

















PER SHARE DATA














Shares outstanding at period end

7,439,127


7,759,954


(4)

%


7,512,360



(1)

%


Weighted average shares outstanding














   Basic

6,778,450


6,882,206


(2)

%


6,950,785



(2)

%


   Diluted

7,094,725


7,033,984


1



7,212,323



(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












































December 31, 2012


September 30, 2012


December 31, 2011


Covered

Noncovered

Total


Covered

Noncovered

Total


Covered

Noncovered

Total

(dollars in thousands)





















CREDIT QUALITY(1)  (2)





















Nonaccrual loans

$  9,579


$ 12,368


$ 21,947



$  9,106


$ 12,608


$ 21,714



$10,460


$11,007


$ 21,467


Accruing loans past due 90 days and over

-


-


-



-


-


-



-


-


-


Total nonperforming loans

9,579


12,368


21,947



9,106


12,608


21,714



10,460


11,007


21,467


Foreclosed assets

2,683


3,771


6,454



3,143


5,300


8,443



6,096


2,868


8,964


Total nonperforming assets

12,262


16,139


28,401



12,249


17,908


30,157



16,556


13,875


30,431


Performing troubled debt restructurings

306


808


1,114



675


816


1,491



26


572


598


Total nonperforming assets and troubled debt restructurings





















$ 12,568


$ 16,947


$ 29,515



$ 12,924


$ 18,724


$ 31,648



$    16,582


$       14,447


$ 31,029























Nonperforming assets to total assets





2.95

%






3.10

%






3.16

%

Nonperforming loans to total assets 





2.28







2.23







2.23


Nonperforming loans to total loans 





3.26







3.24







3.22


Allowance for loan losses to nonperforming assets





18.73







16.27







16.77


Allowance for loan losses to nonperforming loans





24.24







22.60







23.78


Allowance for loan losses to total loans





0.79







0.73







0.77























Year-to-date loan charge-offs





$  2,325







$  2,151







$334


Year-to-date loan recoveries





129







25







58


Year-to-date net loan charge-offs





$  2,196







$  2,126







$     276


Annualized YTD net loan charge-offs to total loans





0.33

%






0.42

%






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

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