Home Bancorp Announces 2012 Third Quarter Results

LAFAYETTE, La., Oct. 23, 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 $3.1 million for the third quarter of 2012, an increase of $1.3 million, or 74%, compared to the second quarter of 2012 and an increase of $2.1 million, or 231%, compared to the third quarter of 2011.  Third quarter 2011 results include $1.4 million of pre-tax expenses related to the acquisition of GS Financial Corp. ("GSFC").  Excluding those merger-related expenses, net income for the third quarter of 2012 increased $1.2 million, or 62%, compared to the third quarter of 2011.  Diluted earnings per share were $0.42 for the third quarter of 2012, an increase of $0.18, or 75%, compared to the second quarter of 2012 and an increase of $0.29, or 223%, compared to the third quarter of 2011.  Excluding third quarter 2011 merger-related expenses, diluted earnings per share for the third quarter of 2012 increased $0.16, or 62%, compared to the third quarter of 2011.

"The extended period of low interest rates, the lack of confidence in the national economy and the uncertainty of the upcoming elections make for a challenging environment," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank.  "Despite these challenges, we will remain true to our conservative risk management philosophies."

"Our bankers continue to do an outstanding job working with our customers to ensure Home Bank adds value to their businesses," added Mr. Bordelon.

Loans and Credit Quality

Loans totaled $670.7 million at September 30, 2012, a decrease of $9.1 million, or 1%, from June 30, 2012, and an increase of $17.0 million, or 3%, from September 30, 2011.  The decrease in loans during the third quarter related primarily to commercial and industrial (down $7.2 million) and construction and land loans (down $2.7 million) as a result of maturities and paydowns.   

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. 










September 30,


December 31,


Increase/(Decrease)


(dollars in thousands)


2012


2011


Amount

Percent


Real estate loans:









     One- to four-family first mortgage

$

174,694

$

182,817

$

(8,123)

(4)

%

     Home equity loans and lines


39,785


43,665


(3,880)

(9)


     Commercial real estate


268,672


226,999


41,673

18


     Construction and land


63,320


78,994


(15,674)

(20)


     Multi-family residential


19,729


20,125


(396)

(2)


        Total real estate loans


566,200


552,600


13,600

2


Other loans:









     Commercial and industrial


70,770


82,980


(12,210)

(15)


     Consumer


33,688


30,791


2,897

9


        Total other loans


104,458


113,771


(9,313)

(8)


        Total loans

$

670,658

$

666,371

$

4,287

1

%

 

Nonperforming assets ("NPAs"), which includes $12.2 million in assets covered under loss sharing agreements with the FDIC ("Covered Assets") and $11.2 million acquired from GSFC, totaled $30.2 million at September 30, 2012, a decrease of $137,000 compared to June 30, 2012 and an increase of $2.1 million compared to September 30, 2011.  The ratio of total NPAs to total assets was 3.10% at September 30, 2012, compared to 3.06% at June 30, 2012 and 2.88% at September 30, 2011.  Excluding acquired assets, the ratio of NPAs was 0.86% at September 30, 2012, compared to 0.90% at June 30, 2012 and 0.27% at September 30, 2011. 

The Company recorded net loan charge-offs of $464,000 during the third quarter of 2012, compared to net loan charge-offs of $1.7 million and $53,000 in the second quarter of 2012 and third quarter of 2011, respectively.  Net charge-offs for the third quarter of 2012 resulted primarily from an additional write down of $385,000 on a $5.4 million CRE loan which was originally written down in the second quarter of 2012.  The collateral underlying the original loan was transferred into repossessed assets during the third quarter of 2012.  The Company's provision for loan losses for the third quarter of 2012 was $56,000, compared to $1.2 million for the second quarter of 2012 and $526,000 for the third quarter of 2011. 

Excluding acquired loans, the ratio of allowance for loan losses to total loans was 1.01% at September 30, 2012, compared to 1.05% at June 30, 2012 and 1.09% at September 30, 2011.   Including acquired loans, the ratio of allowance for loan losses to total loans was 0.73% at September 30, 2012, compared to 0.78% and 0.69% at June 30, 2012 and September 30, 2011, respectively.        

Investment Securities Portfolio

The Company's investment securities portfolio totaled $155.1 million at September 30, 2012, a decrease of $85,000, or 0.1%, from June 30, 2012, and a decrease of $14.4 million, or 9%, from September 30, 2011.  At September 30, 2012, the Company had a net unrealized gain position on its investment securities portfolio of $5.2 million, compared to net unrealized gains of $4.1 million and $2.5 million at June 30, 2012 and September 30, 2011, respectively.  At September 30, 2012, the investment securities portfolio had a modified duration of 3.7 years.

During the third quarter of 2012, the Company sold one security with an aggregate book value of $2.4 million and realized a gain of $163,000 on the transaction. 

Deposits

Core deposits (i.e., checking, savings and money market accounts) increased for the thirteenth consecutive quarter, growing $18.0 million, or 4%, during the third quarter of 2012.  Total deposits were $784.9 million at September 30, 2012, an increase of $5.7 million, or 1%, from June 30, 2012, and an increase of $65.5 million, or 9%, from September 30, 2011.       

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










September 30,


December 31,


Increase / (Decrease)


(dollars in thousands)


2012


2011


Amount

Percent


Demand deposit

$

161,119

$

127,828

$

33,291

26

%

Savings


48,432


43,671


4,761

11


Money market


194,125


180,790


13,335

7


NOW


117,435


93,679


23,756

25


Certificates of deposit


263,831


284,766


(20,935)

(7)


        Total deposits

$

784,942

$

730,734

$

54,208

7

%

Share Repurchases

The Company purchased 162,629 shares of its common stock during the third quarter of 2012 at an average price per share of $17.10 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; hence, an additional 220,969 shares remain eligible for purchase under the plan.  The tangible book value per share of the Company's common stock was $18.35 at September 30, 2012.     

Net Interest Income

Net interest income for the third quarter of 2012 totaled $10.9 million, an increase of $948,000, or 10%, compared to the second quarter of 2012, and an increase of $1.5 million, or 16%, compared to the third quarter of 2011.  The Company's net interest margin was 4.94% for the third quarter of 2012, 30 basis points higher than the second quarter of 2012 and 40 basis points higher than the third quarter of 2011.  The increase in the net interest margin related primarily to an increase in the yield earned on loans covered under loss sharing agreements with the FDIC ("Covered Loans").  In accordance with ASC 310, Receivables, the Company evaluates the expected cash flows of acquired loans throughout the year.  As a result of improved cash flow expectations related to Covered Loans, the Company adjusted the accretable yield recognized on Covered Loans during the quarter.  Excluding such adjustments, the yield on loans receivable would have been 6.25% and the net interest margin would have been 4.70% during the third quarter of 2012. 

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




September 30, 2012



June 30, 2012



September 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

$

678,936

6.55

%

$

674,244

6.12

%

$

612,416

6.25

%


Investment securities


149,472

2.06



152,916

2.12



174,208

2.35



Other interest-earning assets


41,373

0.40



26,504

0.53



28,447

0.51



Total interest-earning assets


869,781

5.49



853,664

5.23



815,071

5.22

















Interest-bearing liabilities:














Deposits:














Savings, checking, and money market


355,107

0.34



329,371

0.39



300,000

0.52



Certificates of deposit


269,840

1.08



276,800

1.11



273,407

1.20



Total interest-bearing deposits


624,947

0.66



606,171

0.72



573,407

0.84



FHLB advances


48,175

1.39



73,488

0.97



105,828

0.68



Total interest-bearing liabilities

$

673,122

0.71


$

679,659

0.75


$

679,235

0.82

















Net interest spread



4.78

%



4.48

%



4.40

%


Net interest margin



4.94

%



4.64

%



4.54

%


























Noninterest Income

 Noninterest income for the third quarter of 2012 totaled $2.1 million, an increase of $187,000, or 10%, compared to the second quarter of 2012 and an increase of $488,000, or 31%, compared to the third quarter of 2011.  The increase in noninterest income in the third quarter of 2012 compared to the second quarter of 2012 resulted primarily from higher gains on the sale of mortgage loans (up $234,000) and gains on the sale of securities (up $103,000), which were partially offset by decreases in discount accretion on FDIC loss sharing receivable, service fees and charges and bank card fees. 

The increase in noninterest income in the third quarter of 2012 compared to the third quarter of 2011 resulted primarily from higher gains on the sale of mortgage loans (up $487,000) and gains on the sale of securities (up $163,000), which were partially offset by decreases in discount accretion on FDIC loss sharing receivable, service fees and charges and bank card fees.    

Noninterest Expense

Noninterest expense for the third quarter of 2012 totaled $8.4 million, an increase of $346,000, or 4%, compared to the second quarter of 2012 and a decrease of $793,000, or 9%, compared to the third quarter of 2011.  Noninterest expense for the third quarter of 2011 included $1.4 million of expenses related to the acquisition of GSFC.   Excluding merger-related expenses, noninterest expense for the third quarter of 2012 increased $655,000, or 8%, compared to the third quarter of 2011.  The increase in noninterest expense in the third quarter of 2012 compared to the second quarter of 2012 resulted primarily from an increase in compensation and benefits (up $220,000) and higher accruals for franchise and shares tax (up $130,000). 

Excluding merger-related expenses in the third quarter of 2011, noninterest expense increased $655,000, or 8%, in the third quarter of 2012 compared to the third quarter of 2011.  The increase resulted primarily from higher compensation and benefits (up $598,000) and expenses related to foreclosed assets as a result of resolution costs related to NPAs acquired from GSFC (up $173,000).

 

Non-GAAP Reconciliation






For the Three Months Ended

(dollars in thousands)

September 30, 2012

June 30, 2012

September 30, 2011





Reported noninterest expense

$  8,389

$ 8,043

$ 9,182

Less: Merger-related expenses

-

-

(1,449)

Non-GAAP noninterest expense

$  8,389

$ 8,043

$ 7,733





Reported net income

$  3,052

$ 1,753

$    923

Add: Merger-related expenses (after tax)

-

-

956

Non-GAAP net income

$  3,052

$ 1,753

$    1,889






For the Nine Months Ended


(dollars in thousands)

September 30, 2012

September 30, 2011






Reported noninterest expense

$    24,241

$22,701


Less: Merger-related expenses

-

(1,834)


Non-GAAP noninterest expense

$    24,241

$20,867






Reported net income

$      6,865

$  2,986


Add: Merger-related expenses (after tax)

-

1,211


Non-GAAP net income

$      6,865

$  4,197


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 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






















September 30,


September 30,


%



June 30

December 31,


2012


2011


Change



2012

2011

Assets










Cash and cash equivalents

$       52,307,703


$       33,228,854


57

%


$       51,694,432

$       31,769,438

Interest-bearing deposits in banks

4,019,000


6,318,000


(36)



4,509,000

5,583,000

Investment securities available for sale, at fair value

153,006,535


165,513,687


(8)



152,718,411

155,259,978

Investment securities held to maturity

2,049,718


3,938,656


(48)



2,422,574

3,461,717

Mortgage loans held for sale

5,572,587


8,928,396


(38)



4,832,498

1,672,597

Loans covered by loss sharing agreements

49,500,917


67,296,479


(26)



46,827,556

61,070,360

Noncovered loans, net of unearned income

621,157,286


586,339,131


6



632,944,049

605,301,127

     Total loans

670,658,203


653,635,610


3



679,771,605

666,371,487

Allowance for loan losses

(4,906,292)


(4,529,834)


8



(5,314,386)

(5,104,363)

     Total loans, net of allowance for loan losses

665,751,911


649,105,776


3



674,457,219

661,267,124

FDIC loss sharing receivable

16,813,909


25,628,190


(34)



22,827,051

24,222,190

Office properties and equipment, net

30,910,746


31,314,946


(1)



30,618,073

31,763,692

Cash surrender value of bank-owned life insurance

17,157,946


16,628,613


3



17,033,380

16,771,174

Accrued interest receivable and other assets

26,720,243


31,568,285


(15)



27,402,864

32,018,228

Total Assets

$     974,310,298


$     972,173,403


-



$     988,515,502

$     963,789,138





















Liabilities










Deposits

$     784,941,867


$     719,460,464


9

%


$     779,233,938

$     730,733,755

Federal Home Loan Bank advances

43,440,343


113,458,132


(62)



54,874,645

93,622,954

Accrued interest payable and other liabilities

5,717,129


6,187,857


(8)



15,375,621

5,147,595

Total Liabilities

834,099,339


839,106,453


(1)



849,484,204

829,504,304











Shareholders' Equity










Common stock

89,483


89,497


-

%


89,453

89,335

Additional paid-in capital

90,513,760


89,336,376


1



90,069,141

89,741,406

Treasury stock

(20,365,995)


(14,376,355)


42



(17,208,855)

(15,892,315)

Common stock acquired by benefit plans

(7,544,939)


(8,714,783)


(13)



(7,666,096)

(8,625,513)

Retained earnings 

74,110,812


65,111,099


14



71,058,483

67,245,350

Accumulated other comprehensive income 

3,407,838


1,621,116


110



2,689,172

1,726,571

Total Shareholders' Equity

140,210,959


133,066,950


5



139,031,298

134,284,834

Total Liabilities and Shareholders' Equity

$     974,310,298


$     972,173,403


-



$     988,515,502

$     963,789,138











 

 

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME


























 For The Three Months Ended 





 For The Nine Months Ended 





 September 30, 

%



 September 30, 

%



2012

2011


Change



2012

2011


Change


Interest Income












Loans, including fees

$      11,309,112

$       9,728,512


16

%


$             32,063,514

$             24,154,691


33

%

Investment securities

769,202

1,023,976


(25)



2,440,833

2,802,155


(13)


Other investments and deposits

41,404

36,280


14



110,870

107,543


3


Total interest income

12,119,718

10,788,768


12



34,615,217

27,064,389


28














Interest Expense












Deposits

1,036,707

1,219,492


(15)

%


3,253,133

3,431,545


(5)

%

Federal Home Loan Bank advances

166,984

180,839


(8)



525,587

396,565


33


Total interest expense

1,203,691

1,400,331


(14)



3,778,720

3,828,110


(1)


Net interest income

10,916,027

9,388,437


16



30,836,497

23,236,279


33


Provision for loan losses

55,736

525,510


(89)



1,927,962

892,459


116


Net interest income after provision for loan losses

10,860,291

8,862,927


23



28,908,535

22,343,820


29














Noninterest Income












Service fees and charges

535,016

601,916


(11)

%


1,688,874

1,622,339


4

%

Bank card fees

443,986

451,959


(2)



1,396,678

1,294,146


8


Gain on sale of loans, net

651,457

163,986


297



1,395,561

389,673


258


Income from bank-owned life insurance

124,566

143,612


(13)



386,772

435,968


(11)


Gain (loss) on the sale of securities, net

162,534

-


-



221,781

(166,082)


234


Discount accretion of FDIC loss sharing receivable

108,762

193,349


(44)



461,893

663,281


(30)


Settlement of litigation

-

-


-



-

525,000


-


Other income

60,537

44,379


36



134,870

158,288


(15)


Total noninterest income

2,086,858

1,599,201


30



5,686,429

4,922,613


16














Noninterest Expense












Compensation and benefits

5,046,836

5,215,478


(3)

%


14,569,194

13,128,998


11

%

Occupancy

722,320

709,640


2



2,119,265

1,834,066


16


Marketing and advertising

202,400

291,628


(31)



538,764

667,824


(19)


Data processing and communication

694,440

1,314,568


(47)



2,033,779

2,428,075


(16)


Professional fees

213,294

327,728


(35)



701,030

1,174,980


(40)


Forms, printing and supplies

111,203

141,008


(21)



377,918

402,082


(6)


Franchise and shares tax

305,889

221,017


38



657,191

582,018


13


Regulatory fees

218,193

258,234


(16)



629,368

688,616


(9)


Foreclosed assets, net

248,089

75,147


230



758,813

229,047


231


Other expenses

626,409

627,945


-



1,855,486

1,564,909


19


Total noninterest expense

8,389,073

9,182,393


(9)



24,240,808

22,700,615


7


Income before income tax expense

4,558,076

1,279,735


256



10,354,156

4,565,818


127


Income tax expense

1,505,746

356,336


323



3,488,694

1,580,288


121


Net income

$        3,052,330

$         923,399


231



$               6,865,462

$               2,985,530


130














Earnings per share - basic

$                0.44

$              0.13


238

%


$                      0.99

$                      0.42


136

%

Earnings per share - diluted

$                0.42

$              0.13


223



$                      0.95

$                      0.41


132














 

 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION




























 For The Three Months Ended 





 For The Three  






 September 30, 


%



 Months Ended 



%



2012


2011


 Change 



 June 30, 2012 



 Change 


(dollars in thousands except per share data)













EARNINGS DATA













Total interest income

$           12,120


$          10,788


12

%


$                   11,230



8

%

Total interest expense

1,204


1,400


(14)



1,262



(5)


Net interest income

10,916


9,388


16



9,968



10


Provision for loan losses

56


526


(89)



1,160



(95)


Total noninterest income

2,087


1,599


31



1,900



10


Total noninterest expense

8,389


9,182


(9)



8,043



4


Income tax expense

1,506


356


323



912



65


Net income

$             3,052


$              923


231



$                     1,753



74















AVERAGE BALANCE SHEET DATA













Total assets

$         974,761


$        926,101


5

%


$                 963,270



1

%

Total interest-earning assets

869,781


815,071


7



853,664



2


Totals loans

678,936


612,416


11



674,244



1


Total interest-bearing deposits

624,947


573,407


9



606,171



3


Total interest-bearing liabilities

673,122


679,235


(1)



679,659



(1)


Total deposits

783,542


689,014


14



747,148



5


Total shareholders' equity

140,548


127,750


10



139,113



1















SELECTED RATIOS (1)













Return on average assets

1.25

%

0.40

%

213

%


0.73

%


71

%

Return on average equity

8.69


2.89


201



5.04



72


Efficiency ratio (2)

64.52


83.57


(23)



67.77



(5)


Average equity to average assets

14.42


13.79


5



14.44



-


Tier 1 leverage capital ratio(3) 

13.23


12.17


9



12.72



4


Total risk-based capital ratio(3) 

21.39


21.17


1



20.70



3


Net interest margin (4)

4.94


4.54


9



4.64



6















PER SHARE DATA













Basic earnings per share

$              0.44


$             0.13


238

%


$                      0.25



76

%

Diluted earnings per share

0.42


0.13


223



0.24



75


Book value at period end

18.66


16.92


10



18.07



3


Tangible book value at period end

18.35


16.60


11



17.76



3















PER SHARE DATA













Shares outstanding at period end

7,512,360


7,862,154


(4)

%


7,693,769



(2)

%

Weighted average shares outstanding













   Basic

6,950,785


7,173,443


(3)

%


6,972,170



-

%

   Diluted

7,212,323


7,274,615


(1)



7,234,806



-















(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












































September 30, 2012


June 30, 2012


September 30, 2011


Covered

Noncovered

Total


Covered

Noncovered

Total


Covered

Noncovered

Total

(dollars in thousands)





















CREDIT QUALITY(1)  (2)





















Nonaccrual loans

$    9,106


$     12,608


$  21,714



$   9,585


$15,842


$  25,427



$    10,680


$        8,791


$ 19,471


Accruing loans past due 90 days and over

-


-


-



-


-


-



-


-


-


Total nonperforming loans

9,106


12,608


21,714



9,585


15,842


25,427



10,680


8,791


19,471


Foreclosed assets

3,143


5,300


8,443



3,244


1,623


4,867



5,495


3,066


8,561


Total nonperforming assets

12,249


17,908


30,157



12,829


17,465


30,294



16,175


11,857


28,032


Performing troubled debt restructurings

675


816


1,491



20


831


851



29


587


616


Total nonperforming assets and troubled 





















debt restructurings

$  12,924


$     18,724


$  31,648



$  12,849


$18,296


$  31,145



$    16,204


$       12,444


$ 28,648























Nonperforming assets to total assets





3.10

%






3.06

%






2.88

%

Nonperforming loans to total assets 





2.23







2.57







2.00


Nonperforming loans to total loans 





3.24







3.74







2.98


Allowance for loan losses to nonperforming assets





16.27







17.54







16.16


Allowance for loan losses to nonperforming loans





22.60







20.90







23.26


Allowance for loan losses to total loans





0.73







0.78







0.69























Year-to-date loan charge-offs





$    2,151







$   1,684







$     320


Year-to-date loan recoveries





25







22







38


Year-to-date net loan charge-offs





$    2,126







$   1,662







$     282


Annualized YTD net loan charge-offs to total loans





0.42

%






0.49

%






0.06

%
































































(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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