2014

Home Bancorp Announces 2012 Second Quarter Results and Approval of Share Repurchase Program

LAFAYETTE, La., July 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 $1.8 million for the second quarter of 2012, a decrease of $308,000, or 15%, compared to the first quarter of 2012 and an increase of $485,000, or 38%, compared to the second quarter of 2011. Diluted earnings per share were $0.24 for the second quarter of 2012, a decrease of $0.05, or 17%, compared to the first quarter of 2012 and an increase of $0.07, or 41%, compared to the second quarter of 2011.

The Company also announced its Board of Directors approved a new program to repurchase up to 383,598 shares, or approximately 5%, of the Company's outstanding common stock. Repurchases may be made by the Company in open-market or privately-negotiated transactions as, in the opinion of management, market conditions warrant. The Company completed a previously announced repurchase program (the "May 2011" program) earlier this month.

The Company's common stock was added to the Russell 3000 Index in June 2012. The index measures the performance of the 3,000 largest companies in the United States based on market capitalization.

"Louisiana businesses continue to discover the value we add to their companies," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "In addition to making their banking more affordable, Home Bank is committed to helping businesses and individuals effectively navigate the financial landscape by providing sound advice, reliable solutions and an unmatched level of service."

Loans and Credit Quality

The Company's loans totaled $679.8 million at June 30, 2012, an increase of $1.1 million, or 0.2%, from March 31, 2012, and an increase of $230.2 million, or 51%, from June 30, 2011. Second quarter 2012 loan growth related primarily to commercial real estate ("CRE") loans, which were up $30.4 million. The majority of CRE loan growth during the quarter resulted from the completion of construction projects financed by the Company. Conversely, construction and land loans were down $20.1 million during the quarter. The increase in loans compared to June 30, 2011 relates primarily to the $182.4 million in loans added as a result of the acquisition of GS Financial Corp. ("GSFC") in July 2011.

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










June 30,


December 31,


Increase/(Decrease)


(dollars in thousands)


2012


2011


Amount

Percent


Real estate loans:









    One- to four-family first mortgage

$

173,227

$

182,817

$

(9,590)

(5)

%

    Home equity loans and lines


41,535


43,665


(2,130)

(5)


    Commercial real estate


268,445


226,999


41,446

18


    Construction and land


66,042


78,994


(12,952)

(16)


    Multi-family residential


20,141


20,125


16

-


        Total real estate loans


569,390


552,600


16,790

3


Other loans:









    Commercial and industrial


77,951


82,980


(5,029)

(6)


    Consumer


32,431


30,791


1,640

5


        Total other loans


110,382


113,771


(3,389)

(3)


        Total loans

$

679,772

$

666,371

$

13,401

2

%

Nonperforming assets ("NPAs"), which includes $12.8 million in assets covered under loss sharing agreements with the FDIC ("Covered Assets") and $10.3 million acquired from GSFC, totaled $30.3 million at June 30, 2012, a decrease of $3.8 million compared to March 31, 2012 and an increase of $10.2 million compared to June 30, 2011. The ratio of total NPAs to total assets was 3.06% at June 30, 2012, compared to 3.48% at March 31, 2012 and 2.80% at June 30, 2011. Excluding acquired assets, the ratio of NPAs was 0.90% at June 30, 2012, compared to 1.16% at March 31, 2012 and 0.19% at June 30, 2011.

The Company recorded net loan charge-offs of $1.7 million during the second quarter of 2012, compared to net loan charge-offs of $3,000 and $227,000 in the first quarter of 2012 and second quarter of 2011, respectively. The increase in net charge-offs for the second quarter of 2012 resulted primarily from a $1.4 million partial charge-off on a $5.4 million CRE loan which was downgraded further during the quarter.

The Company's provision for loan losses for the second quarter of 2012 was $1.2 million, compared to $712,000 for the first quarter of 2012 and $265,000 for the second quarter of 2011. The elevated level of provision during the second quarter of 2012 relates primarily to the same $5.4 million CRE loan mentioned above.

Excluding acquired loans, the ratio of allowance for loan losses to total loans was 1.05% at June 30, 2012, compared to 1.22% at March 31, 2012 and 1.06% at June 30, 2011. Including acquired loans, the ratio of allowance for loan losses to total loans was 0.78% at June 30, 2012, compared to 0.86% and 0.90% at March 31, 2012 and June 30, 2011, respectively.

Investment Securities Portfolio

The Company's investment securities portfolio totaled $155.1 million at June 30, 2012, a decrease of $8.9 million, or 5%, from March 31, 2012, and an increase of $6.9 million, or 5%, from June 30, 2011. At June 30, 2012, the Company had a net unrealized gain position on its investment securities portfolio of $4.1 million, compared to net unrealized gains of $4.0 million and $1.9 million at March 31, 2012 and June 30, 2011, respectively. At June 30, 2012, the investment securities portfolio had a modified duration of 3.6 years.

During the second quarter of 2012, the Company sold securities with an aggregate book value of $11.2 million and realized a gain of $59,000 on the transactions. The securities were sold due to their low book yields and prepayment risk.

The Company maintains a portfolio of non-agency mortgage-backed securities, which had an amortized cost of $13.7 million at June 30, 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 twelfth consecutive quarter, growing $44.5 million, or 10%, during the second quarter of 2012. Total deposits were $779.2 million at June 30, 2012, an increase of $43.1 million, or 6%, from March 31, 2012, and an increase of $251.8 million, or 48%, from June 30, 2011. The Company added $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.










June 30,


December 31,


Increase / (Decrease)


(dollars in thousands)


2012


2011


Amount

Percent


Demand deposit

$

151,770

$

127,828

$

23,942

19

%

Savings


47,018


43,671


3,347

8


Money market


185,768


180,790


4,978

3


NOW


118,550


93,679


24,871

27


Certificates of deposit


276,128


284,766


(8,638)

(3)


        Total deposits

$

779,234

$

730,734

$

48,500

7

%

Share Repurchases

The Company completed the May 2011 share repurchase program earlier this month. Under the May 2011 program, the Company acquired 402,835 shares of the Company's common stock at an average price of $15.15 per share.

On July 23, 2012, the Company's Board of Directors approved a new program to repurchase up to 383,598 shares, or approximately 5%, of the Company's outstanding common stock. Repurchases may be made by the Company in open-market or privately-negotiated transactions as, in the opinion of management, market conditions warrant.

Net Interest Income

Net interest income for the second quarter of 2012 totaled $10.0 million, essentially unchanged compared to the first quarter of 2012, and an increase of $3.0 million, or 43%, compared to the second 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 4.70% for the second quarter of 2012, one basis point higher than the first quarter of 2012 and 14 basis points higher than the second 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




June 30, 2012



March 31, 2012



June 30, 2011



(dollars in thousands)


Average Balance

Average Yield/Rate



Average Balance

Average Yield/Rate



Average Balance

Average Yield/Rate



Interest-earning assets:














Loans receivable

$

674,244

6.19

%

$

672,713

6.20

%

$

445,947

6.53

%


Investment securities


152,916

2.12



155,476

2.21



145,624

2.25



Other interest-earning assets


26,504

0.53



25,160

0.55



21,371

0.65



Total interest-earning assets


853,664

5.29



853,349

5.31



612,942

5.31

















Interest-bearing liabilities:














Deposits:














Savings, checking, and money market


329,371

0.39



316,004

0.45



241,960

0.50



Certificates of deposit


276,800

1.11



282,476

1.11



191,038

1.54



Total interest-bearing deposits


606,171

0.72



598,480

0.76



432,998

0.96



FHLB advances


73,488

0.97



101,473

0.71



41,010

1.12



Total interest-bearing liabilities

$

679,659

0.75


$

699,953

0.75


$

474,008

0.97

















Net interest spread



4.54

%



4.56

%



4.34

%


Net interest margin



4.70

%



4.69

%



4.56

%


























Noninterest Income

Noninterest income for the second quarter of 2012 totaled $1.9 million, an increase of $200,000, or 12%, compared to the first quarter of 2012 and a decrease of $202,000, or 10%, compared to the second quarter of 2011. The increase in noninterest income in the second quarter of 2012 compared to the first quarter of 2012 resulted primarily from higher gains on the sale of mortgage loans of $92,000 and gains on the sale of securities of $59,000.

The decrease in noninterest income in the second quarter of 2012 compared to the second quarter of 2011 resulted primarily from a litigation settlement of $525,000 received in the second quarter of 2011. Excluding the litigation settlement and securities gains, noninterest income increased 17% compared to the same quarter last year due primarily to higher gains on the sale of mortgage loans. Additionally, service fees and charges and bank card fees increased compared to the same quarter last year as a result of the accounts added through the acquisition of GSFC and organic customer growth.

Noninterest Expense

Noninterest expense for the second quarter of 2012 totaled $8.0 million, an increase of $234,000, or 3%, compared to the first quarter of 2012 and an increase of $1.2 million, or 18%, compared to the second quarter of 2011. The increase in noninterest expense in the second quarter of 2012 compared to the first quarter of 2012 resulted primarily from an increase in compensation and benefits of $131,000 and higher marketing and advertising, professional services and other expenses.

The increase in noninterest expense in the second quarter of 2012 compared to the second quarter of 2011 was primarily due to higher compensation and benefits, occupancy and data processing and communication expenses resulting from the addition of GSFC's offices and employees. Additionally, expenses related to foreclosed assets increased during the second quarter of 2012 compared to the same quarter a year ago due primarily due to resolution costs related to NPAs acquired from GSFC.

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 nonrecurring noninterest income. 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






















June 30


June 30


%



March 31,

December 31,


2012


2011


Change



2012

2011

Assets










Cash and cash equivalents

$ 51,211,525


$ 21,588,068


137

%


$ 33,800,736

$ 31,272,508

Interest-bearing deposits in banks

4,509,000


8,273,000


(45)



4,754,000

5,583,000

Investment securities available for sale, at fair value

152,718,411


140,969,334


8



161,000,461

155,259,978

Investment securities held to maturity

2,422,574


7,253,356


(67)



3,064,866

3,461,717

Mortgage loans held for sale

4,832,498


2,773,616


74



1,794,119

1,672,597

Loans covered by loss sharing agreements

46,827,556


68,421,716


(32)



56,111,387

61,070,360

Noncovered loans, net of unearned income

632,944,049


381,119,264


66



622,539,181

605,301,127

Total loans

679,771,605


449,540,980


51



678,650,568

666,371,487

Allowance for loan losses

(5,314,386)


(4,057,044)


31



(5,813,095)

(5,104,363)

Total loans, net of allowance for loan losses

674,457,219


445,483,936


51



672,837,473

661,267,124

FDIC loss sharing receivable

22,827,051


30,709,836


(26)



24,399,699

24,222,190

Office properties and equipment, net

30,618,073


23,015,352


33



30,724,675

31,763,692

Cash surrender value of bank-owned life insurance

17,033,380


16,485,001


3



16,902,453

16,771,174

Accrued interest receivable and other assets

27,885,771


20,848,648


34



30,275,634

32,515,158

Total Assets

$988,515,502


$717,400,147


38



$979,554,116

$963,789,138





















Liabilities










Deposits

$779,233,938


$527,402,695


48

%


$736,157,230

$730,733,755

Federal Home Loan Bank advances

54,874,645


52,500,000


5



100,848,030

93,622,954

Accrued interest payable and other liabilities

15,375,621


3,740,456


311



4,827,764

5,147,595

Total Liabilities

849,484,204


583,643,151


46



841,833,024

829,504,304











Shareholders' Equity










Common stock

89,453


$ 89,312


-

%


89,404

89,335

Additional paid-in capital

90,069,141


88,922,459


1



90,230,748

89,741,406

Treasury stock

(17,208,855)


(11,849,932)


45



(15,965,319)

(15,892,315)

Common stock acquired by benefit plans

(7,666,096)


(8,813,501)


(13)



(8,531,519)

(8,625,513)

Retained earnings

71,058,483


64,187,699


11



69,305,807

67,245,350

Accumulated other comprehensive income

2,689,172


1,220,959


120



2,591,971

1,726,571

Total Shareholders' Equity

139,031,298


133,756,996


4



137,721,092

134,284,834

Total Liabilities and Shareholders' Equity

$988,515,502


$717,400,147


38



$979,554,116

$963,789,138

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME


























For The Three Months Ended





For The Six Months Ended





June 30,

%



June 30,

%



2012

2011


Change



2012

2011


Change


Interest Income












Loans, including fees

$ 10,383,044

$ 7,265,525


43

%


$ 20,754,401

$ 14,426,178


44

%

Investment securities

812,148

817,359


(1)



1,671,631

1,778,180


(6)


Other investments and deposits

35,068

34,542


2



69,466

71,263


(3)


Total interest income

11,230,260

8,117,426


38



22,495,498

16,275,621


38














Interest Expense












Deposits

1,084,579

1,035,004


5

%


2,216,427

2,212,053


-

%

Federal Home Loan Bank advances

177,766

115,087


54



358,602

215,726


66


Total interest expense

1,262,345

1,150,091


10



2,575,029

2,427,779


6


Net interest income

9,967,915

6,967,335


43



19,920,469

13,847,842


44


Provision for loan losses

1,160,326

264,673


338



1,872,226

366,949


410


Net interest income after provision for loan losses

8,807,589

6,702,662


31



18,048,243

13,480,893


34














Noninterest Income












Service fees and charges

583,916

545,599


7

%


1,153,858

1,020,423


13

%

Bank card fees

484,408

444,093


9



952,692

842,188


13


Gain on sale of loans, net

417,934

121,293


245



744,105

225,687


230


Income from bank-owned life insurance

130,927

146,937


(11)



262,206

292,356


(10)


Gain (loss) on the sale of securities, net

59,079

-


-



59,247

(166,082)


136


Discount accretion of FDIC loss sharing receivable

175,622

231,263


(24)



353,131

469,932


(25)


Settlement of litigation

-

525,000


(100)



-

525,000


(100)


Other income

47,773

87,323


(45)



74,335

113,906


(35)


Total noninterest income

1,899,659

2,101,508


(10)



3,599,574

3,323,410


8














Noninterest Expense












Compensation and benefits

4,826,649

3,915,112


23

%


9,522,358

7,913,520


20

%

Occupancy

702,003

559,165


26



1,396,945

1,124,426


24


Marketing and advertising

184,890

215,145


(14)



336,364

376,195


(11)


Data processing and communication

666,999

572,000


17



1,339,340

1,113,507


20


Professional fees

255,483

427,520


(40)



487,736

847,252


(42)


Forms, printing and supplies

140,449

147,093


(5)



266,715

261,074


2


Franchise and shares tax

175,651

180,501


(3)



351,302

361,001


(3)


Regulatory fees

213,018

200,642


6



411,175

430,382


(4)


Foreclosed assets, net

242,726

105,766


129



510,724

153,900


232


Other expenses

635,046

488,152


30



1,229,077

936,963


31


Total noninterest expense

8,042,914

6,811,096


18



15,851,736

13,518,220


17


Income before income tax expense

2,664,334

1,993,074


34



5,796,081

3,286,083


76


Income tax expense

911,659

725,627


26



1,982,948

1,223,952


62


Net income

$ 1,752,675

$ 1,267,447


38



$ 3,813,133

$ 2,062,131


85














Earnings per share - basic

$ 0.25

$ 0.18


39

%


$ 0.55

$ 0.29


90

%

Earnings per share - diluted

$ 0.24

$ 0.17


41



$ 0.53

$ 0.28


89


HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION




























For The Three Months Ended





For The Three






June 30,


%



Months Ended



%



2012


2011


Change



March 31, 2012



Change


(dollars in thousands except per share data)













EARNINGS DATA













Total interest income

$ 11,230


$ 8,117


38

%


$ 11,265



-

%

Total interest expense

1,262


1,150


10



1,313



(4)


Net interest income

9,968


6,967


43



9,952



-


Provision for loan losses

1,160


265


338



712



63


Total noninterest income

1,900


2,102


(10)



1,700



12


Total noninterest expense

8,043


6,811


18



7,809



3


Income tax expense

912


726


26



1,071



(15)


Net income

$ 1,753


$ 1,267


38



$ 2,060



(15)















AVERAGE BALANCE SHEET DATA













Total assets

$ 963,262


$ 709,360


36

%


$ 965,682



-

%

Total interest-earning assets

853,680


612,942


39



853,349



-


Totals loans

674,260


445,947


51



672,713



-


Total interest-bearing deposits

606,171


432,998


40



598,480



1


Total interest-bearing liabilities

679,659


474,008


43



699,953



(3)


Total deposits

747,148


533,640


40



724,752



3


Total shareholders' equity

139,113


133,584


4



135,975



2















SELECTED RATIOS (1)













Return on average assets

0.73

%

0.71

%

3

%


0.85

%


(14)

%

Return on average equity

5.04


3.80


33



6.06



(17)


Efficiency ratio (2)

67.77


75.10


(10)



67.01



1


Average equity to average assets

14.44


18.83


(23)



14.08



3


Tier 1 leverage capital ratio(3)

12.72


15.44


(18)



12.59



1


Total risk-based capital ratio(3)

20.70


27.44


(25)



20.82



(1)


Net interest margin (4)

4.70


4.56


3



4.69



-















PER SHARE DATA













Basic earnings per share

$ 0.25


$ 0.18


39

%


$ 0.30



(17)

%

Diluted earnings per share

0.24


0.17


41



0.29



(17)


Book value at period end

18.07


16.65


9



17.74



2


Tangible book value at period end

17.76


16.44


8



17.42



2















PER SHARE DATA













Shares outstanding at period end

7,693,769


8,035,404


(4)

%


7,762,204



(1)

%

Weighted average shares outstanding













    Basic

6,972,170


7,191,476


(3)

%


6,952,952



-

%

    Diluted

7,234,806


7,337,358


(1)



7,196,444



1





(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












































June 30, 2012


March 31, 2012


June 30, 2011


Covered

Noncovered

Total


Covered

Noncovered

Total


Covered

Noncovered

Total

(dollars in thousands)





















CREDIT QUALITY(1) (2)





















Nonaccrual loans

$ 9,585


$ 15,842


$ 25,427



$ 10,456


$15,759


$ 26,215



$ 11,668


$ 1,127


$ 12,795


Accruing loans past due 90 days and over

-


-


-



-


-


-



-


-


-


Total nonperforming loans

9,585


15,842


25,427



10,456


15,759


26,215



11,668


1,127


12,795


Foreclosed assets

3,244


1,623


4,867



5,168


2,675


7,843



7,178


92


7,270


Total nonperforming assets

12,829


17,465


30,294



15,624


18,434


34,058



18,846


1,219


20,065


Performing troubled debt restructurings

20


831


851



25


543


568



30


922


952


Total nonperforming assets and troubled





















debt restructurings

$ 12,849


$ 18,296


$ 31,145



$ 15,649


$18,977


$ 34,626



$ 18,876


$ 2,141


$ 21,017























Nonperforming assets to total assets





3.06

%






3.48

%






2.80

%

Nonperforming loans to total assets





2.57







2.68







1.78


Nonperforming loans to total loans





3.74







3.86







2.85


Allowance for loan losses to nonperforming assets





17.54







17.07







20.22


Allowance for loan losses to nonperforming loans





20.90







22.18







31.71


Allowance for loan losses to total loans





0.78







0.86







0.90























Year-to-date loan charge-offs





$ 1,684







$ 15







$ 260


Year-to-date loan recoveries





22







12







30


Year-to-date net loan charge-offs





$ 1,662







$ 3







$ 230


Annualized YTD net loan charge-offs to total loans





0.49

%






-

%






0.12

%

























(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.



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