Home Bancorp Announces 2013 First Quarter Results

LAFAYETTE, La., April 23, 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 $1.9 million for the first quarter of 2013, a decrease of $462,000, or 20%, compared to the fourth quarter of 2012 and a decrease of $199,000, or 10%, compared to the first quarter of 2012.  Diluted earnings per share were $0.27 for the first quarter of 2013, a decrease of $0.06, or 18%, compared to the fourth quarter of 2012 and a decrease of $0.02, or 7%, compared to the first quarter of 2012. 

"We are beginning to see our loan pipeline grow modestly," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "We continue to manage our company conservatively through this challenging time for our industry.  We will maintain our credit standards and manage interest rate risk appropriately for the long-term benefit of our Company and shareholders."

Loans and Credit Quality

Loans totaled $678.6 million at March 31, 2013, an increase of $5.5 million, or 1%, from December 31, 2012, and a decrease of $72,000, from March 31, 2012.  During the first quarter, increases in the one-to four-family first mortgage (up $8.5 million) and commercial and industrial (up $2.1 million) loan portfolios were largely offset by maturities and paydowns in most other segments of the loan portfolio.  The increase in the one-to-four-family first mortgage portfolio resulted primarily from the selective addition of 15-year term loans to the portfolio.    

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. 










March 31,


December 31,


Increase/(Decrease)


(dollars in thousands)


2013


2012


Amount

Percent


Real estate loans:









     One- to four-family first mortgage

$

186,275

$

177,816

$

8,459

5

%

     Home equity loans and lines


38,543


40,425


(1,882)

(5)


     Commercial real estate


251,656


252,805


(1,149)

-


     Construction and land


74,229


75,529


(1,300)

(2)


     Multi-family residential


18,500


19,659


(1,159)

(6)


        Total real estate loans


569,203


566,234


2,969

1


Other loans:









     Commercial and industrial


74,346


72,253


2,093

3


     Consumer


35,029


34,641


388

1


        Total other loans


109,375


106,894


2,481

2


        Total loans

$

678,578

$

673,128

$

5,450

1

%

 

Nonperforming assets ("NPAs"), which include $11.6 million in assets covered under loss sharing agreements with the FDIC ("Covered Assets") and $12.3 million acquired from GS Financial Corp. ("GSFC"), totaled $30.5 million at March 31, 2013, an increase of $2.1 million compared to December 31, 2012 and a decrease of $3.6 million compared to March 31, 2012.  The ratio of total NPAs to total assets was 3.12% at March 31, 2013, compared to 2.95% at December 31, 2012 and 3.48% at March 31, 2012.  Excluding acquired assets, the ratio of NPAs to total assets was 0.80% at March 31, 2013, compared to 0.62% at December 31, 2012 and 1.16% at March 31, 2012. 

The Company recorded net loan charge-offs of $165,000 during the first quarter of 2013, compared to net loan charge-offs of $70,000 in the fourth quarter of 2012 and $3,000 in the first quarter of 2012.  The increase in net charge-offs for the first quarter of 2013 resulted primarily from the full charge off of one commercial and industrial loan relationship. 

The Company's provision for loan losses for the first quarter of 2013 was $520,000, compared to $483,000 for the fourth quarter of 2012 and $712,000 for the first quarter of 2012.  The provision in the first quarter of 2013 related primarily to the commercial and industrial loan charge-offs noted above and a $300,000 provision on a $1.3 million medical equipment loan.

The ratio of allowance for loan losses to total loans was 0.84% at March 31, 2013, compared to 0.79% and 0.86% at December 31, 2012 and March 31, 2012, respectively.  Excluding acquired loans, the ratio of the allowance for loan losses to total loans was 1.05% at March 31, 2013, compared to 1.01% at December 31, 2012 and 1.22% at March 31, 2012.           

Investment Securities Portfolio

The Company's investment securities portfolio totaled $159.7 million at March 31, 2013, an increase of $807,000, or 1%, from December 31, 2012, and a decrease of $4.3 million, or 3%, from March 31, 2012.  At March 31, 2013, the Company had a net unrealized gain position on its investment securities portfolio of $4.6 million, compared to net unrealized gains of $4.9 million and $4.0 million at December 31, 2012 and March 31, 2012, respectively.  The investment securities portfolio had a modified duration of 3.7 years at March 31, 2013 and December 31, 2012, compared to 3.2 years at March 31, 2012. 

Deposits

During the first quarter of 2013, core deposits (i.e., checking, savings and money market accounts) increased $24.9 million, or 5%, from December 31, 2012, and increased $84.7 million, or 19%, from March 31, 2012.  Total deposits were $783.3 million at March 31, 2013, an increase of $11.9 million, or 2%, from December 31, 2012, and an increase of $47.2 million, or 6%, from March 31, 2012.       

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)


2013


2012


Amount

Percent


Demand deposit

$

174,520

$

152,462

$

22,058

14

%

Savings


53,677


51,515


2,162

4


Money market


196,009


191,191


4,818

3


NOW


119,111


123,294


(4,183)

(3)


Certificates of deposit


240,002


252,967


(12,965)

(5)


        Total deposits

$

783,319

$

771,429

$

11,890

2

%










Share Repurchases

The Company purchased 36,160 shares of its common stock during the first quarter of 2013 at an average price per share of $18.55 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 April 17, 2013, the Company has purchased 286,022 shares under the plan at an average price per share of $17.56; hence, an additional 97,576 shares remain eligible for purchase under the plan.  The tangible book value per share of the Company's common stock was $19.03 at March 31, 2013.     

Net Interest Income

Net interest income for the first quarter of 2013 totaled $9.9 million, a decrease of $521,000, or 5%, compared to the fourth quarter of 2012, and a decrease of $102,000, or 1%, compared to the first quarter of 2012.  The decline in net interest income in the first quarter of 2013 compared to the first and fourth quarters of 2012 was due largely to a decline in loan interest income as a result of lower volumes of new loan originations and lower average yields earned on loans, reflecting the continuing low interest rate environment as well as the effects of competition for loans in our marketplace.     

The Company's net interest margin was 4.63% for the first quarter of 2013, 12 basis points lower than the fourth quarter of 2012 and two basis points lower than the first quarter of 2012.  The decrease in the net interest margin related primarily to lower loan yields.    

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.  Taxable equivalent yields are calculated using a marginal tax rate of 35%.
















For the Three Months Ended




March 31, 2013



December 31, 2012



March 31, 2012



(dollars in thousands)


Average Balance

Average Yield/Rate



Average Balance

Average Yield/Rate



Average Balance

Average Yield/Rate



Interest-earning assets:














Loans receivable

$

675,435

5.98

%

$

673,428

6.28

%

$

672,713

6.13

%


Investment securities (TE)


153,958

2.15



149,294

2.09



155,476

2.32



Other interest-earning assets


28,753

0.44



41,057

0.43



25,160

0.55



Total interest-earning assets

$

858,146

5.11


$

863,779

5.28


$

853,349

5.27

















Interest-bearing liabilities:














Deposits:














Savings, checking, and money market

$

369,594

0.30


$

361,862

0.33


$

316,004

0.45



Certificates of deposit


245,421

1.01



257,750

1.04



282,476

1.11



Total interest-bearing deposits


615,015

0.58



619,612

0.63



598,480

0.76



FHLB advances


41,243

1.39



40,796

1.58



101,473

0.71



Total interest-bearing liabilities

$

656,258

0.63


$

660,408

0.68


$

699,953

0.75

















Net interest spread (TE)



4.48

%



4.59

%



4.52

%


Net interest margin (TE)



4.63

%



4.75

%



4.65

%


























Noninterest Income

Noninterest income for the first quarter of 2013 totaled $1.8 million, an increase of $15,000, or 1%, compared to the fourth quarter of 2012 and an increase of $80,000, or 5%, compared to the first quarter of 2012.  The increase in noninterest income in the first quarter of 2013 compared to the fourth quarter of 2012 resulted primarily from increases in service fees and charges (up $51,000) and bank card fees (up $15,000), which were partially offset by decreases in gains on the sale of mortgage loans (down $19,000), income from bank-owned life insurance (down $9,000) and other income (down $16,000).     

The increase in noninterest income in the first quarter of 2013 compared to the first quarter of 2012 resulted primarily from higher gains on sale of mortgage loans (up $222,000), which was partially offset by decreases in discount accretion on the FDIC loss sharing receivable (down $65,000), bank card fees (down $54,000) and service fees and charges (down $24,000).      

Noninterest Expense

Noninterest expense for the first quarter of 2013 totaled $8.3 million, an increase of $83,000, or 1%, compared to the fourth quarter of 2012 and an increase of $487,000, or 6%, compared to the first quarter of 2012.  The increase in noninterest expense in the first quarter of 2013 compared to the fourth quarter of 2012 resulted primarily from higher accrual of Louisiana shares tax (up $317,000), which was partially offset by lower data processing and communication (down $126,000) and foreclosed asset expenses (down $115,000).   

The increase in noninterest expense in the first quarter of 2013 compared to the first quarter of 2012 resulted primarily from higher compensation and benefits (up $401,000), marketing and advertising (up $88,000) and Louisiana shares tax (up $98,000) expenses, which were partially offset by lower foreclosed asset expenses (down $90,000).

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 loans acquired from the FDIC and GSFC. 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, 2012, 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,


2013


2012


Change



2012

Assets









Cash and cash equivalents

$   48,271,579


$   33,800,736


43

%


$   39,539,366

Interest-bearing deposits in banks

3,529,000


4,754,000


(26)



3,529,000

Investment securities available for sale, at fair value

158,264,273


161,000,461


(2)



157,255,828

Investment securities held to maturity

1,463,543


3,064,866


(52)



1,665,184

Mortgage loans held for sale

4,373,926


1,794,119


144



5,627,104

Loans covered by loss sharing agreements

41,533,637


56,111,387


(26)



45,764,397

Noncovered loans, net of unearned income

637,044,534


622,539,181


2



627,363,937

     Total loans

678,578,171


678,650,568


-



673,128,334

Allowance for loan losses

(5,674,179)


(5,813,095)


(2)



(5,319,235)

     Total loans, net of allowance for loan losses

672,903,992


672,837,473


-



667,809,099

FDIC loss sharing receivable

15,658,092


24,399,699


(36)



15,545,893

Office properties and equipment, net

30,540,350


30,724,675


(1)



30,777,184

Cash surrender value of bank-owned life insurance

17,405,985


16,902,453


3



17,286,434

Accrued interest receivable and other assets

24,614,631


30,275,634


(19)



23,891,172

Total Assets

$ 977,025,371


$ 979,554,116


-



$ 962,926,264



















Liabilities









Deposits

$ 783,318,582


$ 736,157,230


6

%


$ 771,429,335

Federal Home Loan Bank advances

49,346,176


100,848,030


(51)



46,256,805

Accrued interest payable and other liabilities

1,242,657


4,827,764


(74)



3,666,264

Total Liabilities

833,907,415


841,833,024


(1)



821,352,404










Shareholders' Equity









Common stock

89,534


89,404


-

%


89,506

Additional paid-in capital

91,458,193


90,230,748


1



90,986,820

Treasury stock

(22,390,786)


(15,965,319)


40



(21,719,954)

Common stock acquired by benefit plans

(7,358,139)


(8,531,519)


(14)



(7,455,669)

Retained earnings 

78,297,156


69,305,807


13



76,435,222

Accumulated other comprehensive income 

3,021,998


2,591,971


17



3,237,935

Total Shareholders' Equity

143,117,956


137,721,092


4



141,573,860

Total Liabilities and Shareholders' Equity

$ 977,025,371


$ 979,554,116


-



$ 962,926,264

 

 

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME
























 For The Three Months Ended 





 For The Three 





 March 31, 

%



 Months Ended 


%



2013

2012


Change



 December 31, 2012 


Change


Interest Income











Loans, including fees

$     10,072,750

$    10,371,357


(3)

%


$       10,734,365


(6)

%

Investment securities

771,050

859,482


(10)



728,597


6


Other investments and deposits

31,306

34,398


(9)



43,951


(29)


Total interest income

10,875,106

11,265,237


(3)



11,506,913


(5)













Interest Expense











Deposits

881,014

1,131,848


(22)

%


974,361


(10)

%

Federal Home Loan Bank advances

143,679

180,836


(21)



160,787


(11)


Total interest expense

1,024,693

1,312,684


(22)



1,135,148


(10)


Net interest income

9,850,413

9,952,553


(1)



10,371,765


(5)


Provision for loan losses

520,392

711,900


(27)



483,251


8


Net interest income after provision for loan losses

9,330,021

9,240,653


1



9,888,514


(6)













Noninterest Income











Service fees and charges

546,346

569,941


(4)

%


495,372


10

%

Bank card fees

414,392

468,284


(12)



399,282


4


Gain on sale of loans, net

548,419

326,171


68



567,804


(3)


Income from bank-owned life insurance

119,551

131,279


(9)



128,487


(7)


Gain on the sale of securities, net

-

168


(100)



-


-


Discount accretion of FDIC loss sharing receivable

112,199

177,510


(37)



119,087


(6)


Other income

39,371

26,562


48



55,418


(29)


Total noninterest income

1,780,278

1,699,915


5



1,765,450


1













Noninterest Expense











Compensation and benefits

5,096,218

4,695,709


9

%


5,118,250


-

%

Occupancy

708,786

694,941


2



689,774


3


Marketing and advertising

239,195

151,474


58



205,051


17


Data processing and communication

641,515

672,341


(5)



767,345


(16)


Professional fees

212,746

232,253


(8)



189,175


12


Forms, printing and supplies

106,773

126,266


(15)



100,006


7


Franchise and shares tax

273,620

175,651


56



(43,458)


730


Regulatory fees

223,249

198,158


13



224,673


(1)


Foreclosed assets, net

177,943

267,998


(34)



292,584


(39)


Other expenses

616,271

594,031


4



669,918


(8)


Total noninterest expense

8,296,316

7,808,822


6



8,213,318


1


Income before income tax expense

2,813,983

3,131,746


(10)



3,440,646


(18)


Income tax expense

952,049

1,071,289


(11)



1,116,236


(15)


Net income

$      1,861,934

$      2,060,457


(10)



$         2,324,410


(20)













Earnings per share - basic

$              0.28

$             0.30


(7)

%


$                 0.34


(18)

%

Earnings per share - diluted

$              0.27

$             0.29


(7)



$                 0.33


(18)


 

 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION




























 For The Three Months Ended 





 For The Three  






 March 31, 


%



 Months Ended 



%



2013


2012


 Change 



 December 31, 2012 



 Change 


(dollars in thousands except per share data)













EARNINGS DATA













Total interest income

$   10,875


$   11,265


(3)

%


$           11,507



(5)

%

Total interest expense

1,025


1,313


(22)



1,135



(10)


Net interest income

9,850


9,952


(1)



10,372



(5)


Provision for loan losses

520


712


(27)



483



8


Total noninterest income

1,780


1,700


5



1,765



1


Total noninterest expense

8,296


7,809


6



8,213



1


Income tax expense

952


1,071


(11)



1,116



(15)


Net income

$     1,862


$     2,060


(10)



$            2,325



(20)















AVERAGE BALANCE SHEET DATA













Total assets

$ 961,542


$ 965,683


-

%


$         969,182



(1)

%

Total interest-earning assets

858,146


853,349


1



863,779



(1)


Total loans

675,435


672,713


-



673,428



-


Total interest-bearing deposits

615,015


598,480


3



619,612



(1)


Total interest-bearing liabilities

656,258


699,953


(6)



660,408



(1)


Total deposits

775,937


724,752


7



783,522



(1)


Total shareholders' equity

143,113


134,899


6



141,457



1















SELECTED RATIOS (1)













Return on average assets

0.77

%

0.85

%

(9)

%


0.96

%


(20)

%

Return on average equity

5.20


6.11


(15)



6.57



(21)


Efficiency ratio (2)

71.33


67.01


6



67.67



5


Average equity to average assets

14.88


13.97


7



14.60



2


Tier 1 leverage capital ratio(3) 

13.70


12.59


9



13.67



-


Total risk-based capital ratio(3) 

22.11


20.83


6



21.83



1


Net interest margin (4)

4.63


4.65


-



4.75



(3)















PER SHARE DATA













Basic earnings per share

$      0.28


$      0.30


(7)

%


$              0.34



(18)

%

Diluted earnings per share

0.27


0.29


(7)



0.33



(18)


Book value at period end

19.33


17.74


9



19.03



2


Tangible book value at period end

19.03


17.42


9



18.73



2















PER SHARE DATA













Shares outstanding at period end

7,405,767


7,762,204


(5)

%


7,439,127



-

%

Weighted average shares outstanding













   Basic

6,668,780


6,952,952


(4)

%


6,770,286



(1)

%

   Diluted

7,019,572


7,196,444


(2)



7,086,561



(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. Taxable equivalent yields are calculated using a marginal tax rate of 35%.


 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY CREDIT QUALITY INFORMATION












































March 31, 2013


December 31, 2012


March 31, 2012


Covered

Noncovered

Total


Covered

Noncovered

Total


Covered

Noncovered

Total

(dollars in thousands)





















CREDIT QUALITY(1)  (2)





















Nonaccrual loans

$   8,105


$ 15,225


$ 23,330



$   9,579


$ 12,368


$ 21,947



$ 10,456


$ 15,759


$ 26,215


Accruing loans past due 90 days and over

-


-


-



-


-


-



-


-


-


Total nonperforming loans

8,105


15,225


23,330



9,579


12,368


21,947



10,456


15,759


26,215


Other real estate owned

3,517


3,612


7,129



2,683


3,771


6,454



5,168


2,675


7,843


Total nonperforming assets

11,622


18,837


30,459



12,262


16,139


28,401



15,624


18,434


34,058


Performing troubled debt restructurings

297


482


779



306


808


1,114



25


543


568


Total nonperforming assets and troubled debt restructurings

 

$ 11,919


 

$ 19,319


 

$ 31,238



 

$ 12,568


 

$ 16,947


 

$ 29,515



 

$ 15,649


 

$ 18,977


 

$ 34,626























Nonperforming assets to total assets





3.12

%






2.95

%






3.48

%

Nonperforming loans to total assets 





2.39







2.28







2.68


Nonperforming loans to total loans 





3.44







3.26







3.86


Allowance for loan losses to nonperforming assets





18.63







18.73







17.07


Allowance for loan losses to nonperforming loans





24.32







24.24







22.18


Allowance for loan losses to total loans





0.84







0.79







0.86























Year-to-date loan charge-offs





$     189







$   2,325







$       15


Year-to-date loan recoveries





24







129







12


Year-to-date net loan charge-offs





$     165







$   2,196







$         3


Annualized YTD net loan charge-offs to total loans





0.10

%






0.33

%






-

%
































































(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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http://www.home24bank.com

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