Home Bancorp Announces 2013 Third Quarter Results

LAFAYETTE, La., Oct. 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 $2.5 million for the third quarter of 2013, an increase of $1.2 million, or 100%, compared to the second quarter of 2013 and a decrease of $570,000, or 19%, compared to the third quarter of 2012.  Diluted earnings per share were $0.37 for the third quarter of 2013, an increase of $0.19, or 106%, compared to the second quarter of 2013 and a decrease of $0.05, or 12%, compared to the third quarter of 2012. 

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"The performance of the South Louisiana economy continues to outpace much of the nation," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "Such a robust economy played a key role in our strongest quarterly results of the year."

"Our focus is on adding quality bankers and customers to our franchise," added Mr. Bordelon, "and continuing our disciplined growth."

Loans and Credit Quality

Loans totaled $680.9 million at September 30, 2013, an increase of $5.0 million, or 1%, from June 30, 2013, and an increase of $10.2 million, or 2%, from September 30, 2012.  During the third quarter, increases in home equity loans and lines (up $3.0 million), commercial real estate loans (up $2.9 million) and consumer loans (up $2.4 million) were partially offset by decreases in one- to four-family mortgage loans (down $3.1 million) and commercial and industrial loans (down $1.1 million).  

The following table sets forth the composition of the Company's loan portfolio (including Covered Loans) as of the dates indicated. 











September 30,


December 31,


Increase/(Decrease)


(dollars in thousands)


2013


2012


Amount


Percent


Real estate loans:










     One- to four-family first mortgage

$

178,142

$

177,816

$

326


-

%

     Home equity loans and lines


40,922


40,425


497


1


     Commercial real estate


253,648


252,805


843


-


     Construction and land


72,201


75,529


(3,328)


(4)


     Multi-family residential


16,864


19,659


(2,795)


(14)


        Total real estate loans


561,777


566,234


(4,457)


(1)


Other loans:










     Commercial and industrial


80,278


72,253


8,025


11


     Consumer


38,819


34,641


4,178


12


        Total other loans


119,097


106,894


12,203


11


        Total loans

$

680,874

$

673,128

$

7,746


1

%

 

Nonperforming assets ("NPAs"), which include $8.9 million in assets covered under loss sharing agreements with the FDIC ("Covered Assets") and $12.8 million in assets acquired from GS Financial Corp. ("GSFC"), totaled $27.4 million at September 30, 2013, a decrease of $90,000 compared to June 30, 2013 and a decrease of $2.7 million compared to September 30, 2012.  The ratio of total NPAs to total assets was 2.85% at September 30, 2013, compared to 2.83% at June 30, 2013 and 3.10% at September 30, 2012.  Excluding acquired assets, the ratio of NPAs to total assets was 0.69% at September 30, 2013, compared to 0.68% at June 30, 2013 and 0.86% at September 30, 2012. 

The Company recorded net loan charge-offs of $84,000 during the third quarter of 2013, compared to net loan charge-offs of $1.8 million in the second quarter of 2013 and $464,000 in the third quarter of 2012.  The Company's provision for loan losses for the third quarter of 2013 was $453,000, compared to $2.2 million for the second quarter of 2013 and $56,000 for the third quarter of 2012.    

The ratio of allowance for loan losses to total loans was 0.95% at September 30, 2013, compared to 0.90% and 0.73% at June 30, 2013 and September 30, 2012, respectively.  Excluding acquired loans, the ratio of the allowance for loan losses to total loans was 1.09% at September 30, 2013, compared to 1.08% and 1.01% at June 30, 2013 and September 30, 2012, respectively.           

Investment Securities Portfolio

The Company's investment securities portfolio totaled $160.4 million at September 30, 2013, an increase of $4.5 million, or 3%, from June 30, 2013, and an increase of $5.4 million, or 4%, from September 30, 2012.  At September 30, 2013, the Company had a net unrealized gain position on its investment securities portfolio of $1.1 million, compared to net unrealized gains of $1.4 million and $5.2 million at June 30, 2013 and September 30, 2012, respectively. The decrease in the unrealized gain primarily reflects increasing market interest rates.  The investment securities portfolio had a modified duration of 4.7 years at September 30, 2013, compared to 4.2 and 3.7 years at June 30, 2013 and September 30, 2012, respectively.

Deposits

During the third quarter of 2013, core deposits (i.e., checking, savings and money market accounts) increased $2.6 million, or 1%, from June 30, 2013, and increased $35.3 million, or 7%, from September 30, 2012.  The increases in core deposits were offset by declines in certificate of deposits ("CDs"), as higher-priced CDs matured.  Total deposits were $765.8 million at September 30, 2013, a decrease of $11.4 million, or 2%, from June 30, 2013, and a decrease of $19.1 million, or 2%, from September 30, 2012.       

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)


2013


2012


Amount

Percent


Demand deposit

$

171,915

$

152,462

$

19,453

13

%

Savings


54,709


51,515


3,194

6


Money market


203,218


191,191


12,027

6


NOW


126,595


123,294


3,301

3


Certificates of deposit


209,373


252,967


(43,594)

(17)


        Total deposits

$

765,810

$

771,429

$

(5,619)

(1)

%










Share Repurchases

Under the Company's June 2013 stock repurchase program, the Company may purchase up to 370,000 shares, or approximately 5%, of the Company's outstanding common stock.  The Company purchased 44,177 shares of its common stock during the third quarter of 2013 at an average price per share of $18.47.  As of October 23, 2013, an additional 168,123 shares remain eligible for purchase under the plan.  The tangible book value per share of the Company's common stock was $19.47 at September 30, 2013.     

Net Interest Income

Net interest income for the third quarter of 2013 totaled $10.4 million, an increase of $473,000, or 5%, compared to the second quarter of 2013, and a decrease of $513,000, or 5%, compared to the third quarter of 2012.  The Company's net interest margin was 4.79% for the third quarter of 2013, 20 basis points higher than the second quarter of 2013 and 17 basis points lower than the third quarter of 2012.  The increase in the net interest margin for the third quarter of 2013 related primarily to an increase in the yield earned on loans covered under loss sharing agreements with the FDIC ("Covered Loans").  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.  The Covered Loan portfolio yielded 15.60% during the third quarter of 2013, compared to 10.18% and 8.16% during the second quarter of 2013 and third quarter of 2012, respectively.  Excluding Covered Loans, the yield on loans receivable would have been 5.72% during the third quarter of 2013, compared to 5.63% and 6.44% during the second quarter of 2013 and third quarter of 2012, respectively. 

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 ("TE") yields on investment securities are calculated using a marginal tax rate of 35%.
















For the Three Months Ended




September 30, 2013



June 30, 2013



September 30, 2012



(dollars in thousands)


Average Balance

Average Yield/Rate



Average Balance

Average Yield/Rate



Average Balance

Average Yield/Rate



Interest-earning assets:














Loans receivable

$

676,639

6.07

%

$

683,374

5.86

%

$

678,936

6.56

%


Investment securities (TE)


157,352

2.10



154,523

2.11



149,472

2.18



Other interest-earning assets


27,293

0.47



28,153

0.46



41,373

0.40



Total interest-earning assets

$

861,284

5.17


$

866,050

5.01


$

869,781

5.52

















Interest-bearing liabilities:














Deposits:














Savings, checking, and money market

$

389,773

0.24


$

372,613

0.26


$

355,107

0.34



Certificates of deposit


215,745

0.90



231,824

0.97



269,840

1.08



Total interest-bearing deposits


605,518

0.48



604,437

0.53



624,947

0.66



FHLB advances


41,083

0.90



50,734

0.96



48,175

1.39



Total interest-bearing liabilities

$

646,601

0.51


$

655,171

0.56


$

673,122

0.71

















Net interest spread (TE)



4.66

%



4.45

%



4.81

%


Net interest margin (TE)



4.79

%



4.59

%



4.96

%


























Noninterest Income

Noninterest income for the third quarter of 2013 totaled $1.7 million, a decrease of $531,000, or 24%, compared to the second quarter of 2013 and a decrease of $421,000, or 20%, compared to the third quarter of 2012.  The decrease in noninterest income in the third quarter of 2013 compared to the second quarter of 2013 resulted primarily from the absence of gains on the sale of securities (down $428,000) and a decrease in gains on the sale of mortgage loans (down $112,000).     

The decrease in noninterest income in the third quarter of 2013 compared to the third quarter of 2012 resulted primarily from lower gains on the sale of mortgage loans (down $337,000) and the absence of gains on the sale of securities (down $163,000).      

Noninterest Expense

Noninterest expense for the third quarter of 2013 totaled $7.9 million, a decrease of $124,000, or 2%, compared to the second quarter of 2013 and a decrease of $499,000, or 6%, compared to the third quarter of 2012.  The decrease in noninterest expense in the third quarter of 2013 compared to the second quarter of 2013 resulted primarily from lower other expenses (down $314,000 primarily due to the absence of $169,000 in penalties incurred in prepaying long-term FHLB borrowings and lower other loan fee expenses of $134,000), data processing and communication expenses (down $52,000), forms, printing and supplies expenses (down $49,000) and marketing and advertising expenses (down $20,000), which were partially offset by higher compensation and benefits expenses (up $137,000) and foreclosed assets expenses (up $123,000).  

The decrease in noninterest expense in the third quarter of 2013 compared to the third quarter of 2012 resulted primarily from lower foreclosed asset expenses (down $157,000), other expenses (down $155,000), data processing and communication expenses (down $120,000) and marketing and advertising expenses (down $50,000). 

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
























September 30,


September 30,


%



June 30,


December 31,


2013


2012


Change



2013


2012

Assets











Cash and cash equivalents

$   35,953,034


$   52,307,703


(31)

%


$   51,957,884


$   39,539,366

Interest-bearing deposits in banks

3,185,000


4,019,000


(21)



3,284,000


3,529,000

Investment securities available for sale, at fair value

151,453,721


153,006,535


(1)



150,387,103


157,255,828

Investment securities held to maturity

8,965,112


2,049,718


337



5,505,716


1,665,184

Mortgage loans held for sale

1,711,585


5,572,587


(69)



4,229,298


5,627,104

Loans covered by loss sharing agreements

23,723,936


49,500,917


(52)



27,350,973


45,764,397

Noncovered loans, net of unearned income

657,150,445


621,157,286


6



648,568,074


627,363,937

     Total loans

680,874,381


670,658,203


2



675,919,047


673,128,334

Allowance for loan losses

(6,462,841)


(4,906,292)


32



(6,093,556)


(5,319,235)

     Total loans, net of allowance for loan losses

674,411,540


665,751,911


1



669,825,491


667,809,099

FDIC loss sharing receivable

13,576,606


16,813,909


(19)



15,065,655


15,545,893

Office properties and equipment, net

30,312,996


30,910,746


(2)



30,473,517


30,777,184

Cash surrender value of bank-owned life insurance

17,638,008


17,157,946


3



17,523,536


17,286,434

Accrued interest receivable and other assets

24,688,760


26,720,243


(8)



23,511,646


23,891,172

Total Assets

$ 961,896,362


$ 974,310,298


(1)



$ 971,763,846


$ 962,926,264























Liabilities











Deposits

$ 765,810,312


$ 784,941,867


(2)

%


$ 777,236,290


$ 771,429,335

Federal Home Loan Bank advances

50,900,000


43,440,343


17



52,500,000


46,256,805

Accrued interest payable and other liabilities

4,965,371


5,717,129


(13)



3,868,422


3,666,264

Total Liabilities

821,675,683


834,099,339


(1)



833,604,712


821,352,404












Shareholders' Equity











Common stock

89,579


89,483


-

%


89,563


89,506

Additional paid-in capital

91,743,191


90,513,760


1



91,309,237


90,986,820

Treasury stock

(28,003,896)


(20,365,995)


38



(27,187,845)


(21,719,954)

Common stock acquired by benefit plans

(6,376,957)


(7,544,939)


(15)



(6,487,467)


(7,455,669)

Retained earnings 

82,023,494


74,110,812


11



79,540,747


76,435,222

Accumulated other comprehensive income 

745,268


3,407,838


(78)



894,899


3,237,935

Total Shareholders' Equity

140,220,679


140,210,959


-



138,159,134


141,573,860

Total Liabilities and Shareholders' Equity

$ 961,896,362


$ 974,310,298


(1)



$ 971,763,846


$ 962,926,264

 

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME


























 For The Three Months Ended 





 For TheNine Months Ended 





 September 30, 

%



 September 30, 

%



2013

2012


Change



2013

2012


Change


Interest Income












Loans, including fees

$      10,438,505

$ 11,309,112


(8)

%


$ 30,578,885

$ 32,063,514


(5)

%

Investment securities

754,902

769,202


(2)



2,278,112

2,440,833


(7)


Other investments and deposits

32,471

41,404


(22)



96,077

110,870


(13)


    Total interest income

11,225,878

12,119,718


(7)



32,953,074

34,615,217


(5)














Interest Expense












Deposits

729,941

1,036,707


(30)

%


2,410,621

3,253,133


(26)

%

Federal Home Loan Bank advances

92,610

166,984


(45)



358,806

525,587


(32)


    Total interest expense

822,551

1,203,691


(32)



2,769,427

3,778,720


(27)


Net interest income

10,403,327

10,916,027


(5)



30,183,647

30,836,497


(2)


Provision for loan losses

453,133

55,736


713



3,221,326

1,927,962


67


Net interest income after provision for loan losses

9,950,194

10,860,291


(8)



26,962,321

28,908,535


(7)














Noninterest Income












Service fees and charges

627,607

535,016


17

%


1,753,547

1,688,874


4

%

Bank card fees

445,784

443,986


-



1,314,299

1,396,678


(6)


Gain on sale of loans, net

314,626

651,457


(52)



1,289,487

1,395,561


(8)


Income from bank-owned life insurance

114,473

124,566


(8)



351,575

386,772


(9)


Gain on the sale of securities, net

-

162,534


-



428,200

221,781


93


Discount accretion of FDIC loss sharing receivable

111,066

108,762


2



334,913

461,893


(27)


Other income

52,215

60,537


(14)



170,351

134,870


26


    Total noninterest income

1,665,771

2,086,858


(20)



5,642,372

5,686,429


(1)














Noninterest Expense












Compensation and benefits

5,017,628

5,046,836


(1)

%


14,993,975

14,569,194


3

%

Occupancy

779,908

722,320


8



2,248,632

2,119,265


6


Marketing and advertising

152,270

202,400


(25)



563,793

538,764


5


Data processing and communication

574,364

694,440


(17)



1,842,036

2,033,779


(9)


Professional fees

217,657

213,294


2



623,909

701,030


(11)


Forms, printing and supplies

86,965

111,203


(22)



329,762

377,918


(13)


Franchise and shares tax

272,960

305,889


(11)



819,540

657,191


25


Regulatory fees

225,175

218,193


3



668,059

629,368


6


Foreclosed assets, net

90,982

248,089


(63)



236,740

758,813


(69)


Other expenses

471,670

626,409


(25)



1,873,530

1,855,486


1


    Total noninterest expense

7,889,579

8,389,073


(6)



24,199,976

24,240,808


-


Income before income tax expense

3,726,386

4,558,076


(18)



8,404,717

10,354,156


(19)


Income tax expense

1,243,639

1,505,746


(17)



2,816,445

3,488,694


(19)


Net income

$        2,482,747

$  3,052,330


(19)



$  5,588,272

$  6,865,462


(19)














Earnings per share - basic

$                 0.38

$           0.44


(14)

%


$           0.84

$           0.99


(15)

%

Earnings per share - diluted

$                 0.37

$           0.42


(12)



$           0.80

$           0.95


(16)


 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION




























 For The Three Months Ended 





 For The Three  






 September 30, 


%



 Months Ended 



%



2013


2012


 Change 



 June 30, 2013 



 Change 


(dollars in thousands except per share data)













EARNINGS DATA













Total interest income

$    11,226


$12,120


(7)

%


$            10,852



3

%

Total interest expense

823


1,204


(32)



922



(11)


Net interest income

10,403


10,916


(5)



9,930



5


Provision for loan losses

453


56


709



2,248



(80)


Total noninterest income

1,666


2,087


(20)



2,196



(24)


Total noninterest expense

7,889


8,389


(6)



8,014



(2)


Income tax expense

1,244


1,506


(17)



621



100


Net income

$     2,483


$     3,052


(19)



$              1,243



100















AVERAGE BALANCE SHEET DATA













Total assets

$  958,560


$974,761


(2)

%


$          967,679



(1)

%

Total interest-earning assets

861,284


869,781


(1)



866,050



(1)


Total loans

676,639


678,936


-



683,374



(1)


Total interest-bearing deposits

605,518


624,947


(3)



604,437



-


Total interest-bearing liabilities

646,601


673,122


(4)



655,171



(1)


Total deposits

776,556


783,542


(1)



771,868



1


Total shareholders' equity

139,060


140,548


(1)



143,705



(3)















SELECTED RATIOS (1)













Return on average assets

1.04

%

1.25

%

(17)

%


0.51

%


104

%

Return on average equity

7.14


8.69


(18)



3.46



106


Efficiency ratio (2)

65.37


64.52


1



66.37



(2)


Average equity to average assets

14.51


14.42


1



14.85



(2)


Tier 1 leverage capital ratio(3) 

14.29


13.23


8



13.85



3


Total risk-based capital ratio(3) 

22.33


21.39


4



22.14



1


Net interest margin (4)

4.79


4.96


(3)



4.59



4















PER SHARE DATA













Basic earnings per share

$       0.38


$       0.44


(14)

%


$               0.19



100

%

Diluted earnings per share

0.37


0.42


(12)



0.18



106


Book value at period end

19.75


18.66


6



19.35



2


Tangible book value at period end

19.47


18.35


6



19.06



2















PER SHARE DATA













Shares outstanding at period end

7,099,164


7,512,360


(6)

%


7,141,691



(1)

%

Weighted average shares outstanding













   Basic

6,481,911


6,950,785


(7)

%


6,652,097



(3)

%

   Diluted

6,768,578


7,212,323


(6)



6,963,570



(3)










































 

(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












































September 30, 2013


June 30, 2013


September 30, 2012


Covered

Noncovered

Total


Covered

Noncovered

Total


Covered

Noncovered

Total

(dollars in thousands)





















CREDIT QUALITY(1)  (2)





















Nonaccrual loans

$ 5,807


$ 15,784


$ 21,591



$  6,949


$ 16,938


$ 23,887



$9,106


$12,608


$ 21,714


Accruing loans past due 90 days and over

-


-


-



-


-


-



-


-


-


Total nonperforming loans

5,807


15,784


21,591



6,949


16,938


23,887



9,106


12,608


21,714


Other real estate owned

3,064


2,786


5,850



2,755


888


3,643



3,143


5,300


8,443


Total nonperforming assets

8,871


18,570


27,441



9,704


17,826


27,530



12,249


17,908


30,157


Performing troubled debt restructurings

6


437


443



321


532


853



675


816


1,491


Total nonperforming assets and troubled debt restructurings

$ 8,877


$ 19,007


$ 27,884



$ 10,025


$ 18,358


$ 28,383



$ 12,924


$ 18,724


$ 31,648























Nonperforming assets to total assets





2.85

%






2.83

%






3.10

%

Nonperforming loans to total assets 





2.24







2.46







2.23


Nonperforming loans to total loans 





3.17







3.53







3.24


Allowance for loan losses to nonperforming assets





23.55







22.13







16.27


Allowance for loan losses to nonperforming loans





29.93







25.51







22.60


Allowance for loan losses to total loans





0.95







0.90







0.73























Year-to-date loan charge-offs





$  2,135







$  2,030







$2,151


Year-to-date loan recoveries





58







37







25


Year-to-date net loan charge-offs





$  2,077







$  1,993







$  2,126


Annualized YTD net loan charge-offs to total loans





0.41

%






0.39

%






0.42

%









































































 

(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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