Investor Relations

LAFAYETTE, La., Jan. 27, 2015 /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 $2.8 million for the fourth quarter of 2014, a decrease of $68,000, or 2%, compared to the third quarter of 2014 and an increase of $1.1 million, or 65%, compared to the fourth quarter of 2013.  The fourth quarter of 2013 includes $307,000 of pre-tax expenses related to the acquisition of Britton & Koontz Capital Corporation ("Britton & Koontz") and its wholly-owned subsidiary, Britton & Koontz Bank, N.A. ("Britton & Koontz Bank") in February 2014.  Excluding merger-related expenses, net income for the fourth quarter of 2014 increased 47% compared to the fourth quarter of 2013.  Diluted earnings per share were $0.40 for the fourth quarter of 2014, a decrease of $0.01, or 2%, from the third quarter of 2014 and an increase of $0.15, or 60%, compared to the fourth quarter of 2013.  Excluding merger-related expenses, diluted earnings per share for the fourth quarter of 2014 increased 43% compared to the fourth quarter of 2013. 

Net income for the year ended December 31, 2014 was a record $9.9 million, an increase of $2.6 million, or 35%, compared to 2013.  Excluding pre-tax merger-related expenses of $2.3 million and $307,000 incurred during 2014 and 2013, respectively, net income for the year ended December 31, 2014 was $11.4 million, an increase of 52% compared to 2013. Diluted earnings per share for 2014 were a record $1.42, an increase of 34% compared to $1.06 in 2013.  Excluding merger-related expenses, diluted earnings per share were $1.64, an increase of 51% compared to 2013. 

"Excluding merger-related expenses, net income increased 52% in 2014," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "Our employees did a fine job deepening customer relationships and improving our financial performance during the year."

"While falling prices are likely to dampen expansion in the energy industry," continued Bordelon, "we remain bullish on the growth prospects for many of our markets."

The Company also announced that its Board of Directors declared a cash dividend of $0.07 per share payable on February 23, 2015, to shareholders of record as of February 9, 2015.

Loans and Credit Quality

Loans totaled $909.0 million at December 31, 2014, an increase of $1.6 million, or 0.2%, from September 30, 2014, and an increase of $201.5 million, or 28%, from December 31, 2013. The increase in loans outstanding at December 31, 2014 compared to December 31, 2013 primarily reflects the acquisition of Britton & Koontz.  The Company acquired $298.9 million of total assets from Britton & Koontz, including $161.6 million of loans. During the fourth quarter of 2014, the increase in loans related primarily to commercial real estate (up $23.2 million), commercial and industrial (up $8.9 million) and multi-family residential loans (up $4.9 million), which were offset by decreases in construction and land (down $34.1 million) and one- to four-family first mortgage loans (down $1.1 million).

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

Nonperforming assets ("NPAs") totaled $28.5 million at December 31, 2014, an increase of $5.9 million compared to September 30, 2014 and a decrease of $830,000 compared to December 31, 2013. The fourth quarter 2014 increase in NPAs relates to acquired assets.  $22.8 million of the $28.5 million in NPAs at December 31, 2014 relates to our acquisitions of Statewide Bank, GS Financial Corp. and Britton & Koontz.  The ratio of total NPAs to total assets was 2.33% at December 31, 2014, compared to 1.79% at September 30, 2014 and 2.98% at December 31, 2013.  Excluding acquired assets, the ratio of NPAs was 0.56% at December 31, 2014, compared to 0.44% at September 30, 2014 and 0.81% at December 31, 2013. 

The Company recorded net loan charge-offs of $175,000 during the fourth quarter of 2014, compared to net loan charge-offs of $1.2 million in the third quarter of 2014 and a net loan recovery of $24,000 in the fourth quarter of 2013.  The Company's provision for loan losses for the fourth quarter of 2014 was $516,000, compared to $892,000 for the third quarter of 2014 and $431,000 for the fourth quarter of 2013. 

The ratio of allowance for loan losses to total loans was 0.85% at December 31, 2014, compared to 0.82% and 0.98% at September 30, 2014 and December 31, 2013, respectively.  Excluding acquired loans, the ratio of the allowance for loan losses to total loans was 1.04% at December 31, 2014, compared to 1.01% and 1.12% at September 30, 2014 and December 31, 2013, respectively.       

Investment Securities Portfolio

The Company's investment securities portfolio totaled $186.5 million at December 31, 2014, a decrease of $5.9 million, or 3%, from September 30, 2014, and an increase of $27.5 million, or 17%, from December 31, 2013. The increase compared to December 31, 2013 resulted primarily from the addition of securities acquired from Britton & Koontz.  At December 31, 2014, the Company had a net unrealized gain position on its investment securities portfolio of $2.0 million, compared to net unrealized gains of $1.4 million and $300,000 at September 30, 2014 and December 31, 2013, respectively.  The Company's investment securities portfolio had a modified duration of 3.8 years at September 30, 2014, compared to 4.2 years at December 31, 2013.  

Deposits

Total deposits were $993.6 million at December 31, 2014, an increase of $10.2 million, or 1%, from September 30, 2014, and an increase of $252.3 million, or 34%, from December 31, 2013.   The acquisition of Britton & Koontz added $216.6 million in deposits.  During the fourth quarter of 2014, core deposits (i.e., checking, savings and money market accounts) increased $13.7 million, or 2%, from September 30, 2014, and increased $223.9 million, or 41%, from December 31, 2013.  Core deposits acquired from Britton & Koontz totaled $151.9 million.         

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

Net Interest Income

Net interest income for the fourth quarter of 2014 totaled $12.9 million, a decrease of $299,000, or 2%, compared to the third quarter of 2014, and an increase of $2.9 million, or 29%, compared to the fourth quarter of 2013.  The addition of Britton & Koontz's earning assets accounted for the majority of the increase from fourth quarter 2013 to fourth quarter 2014. The Company's net interest margin was 4.51% for the fourth quarter of 2014, 12 basis points lower than the third quarter of 2014 and nine basis points lower than the fourth quarter of 2013.  The decrease in the net interest margin in the fourth quarter of 2014 compared to the fourth quarter of 2013 was primarily the result of the impact of Britton & Koontz's interest-earning assets and interest-bearing liabilities.  The decrease in the net interest margin in the fourth quarter of 2014 compared to the third quarter of 2014 was primarily the result of lower loan yields due to less accretion of the discount recorded on acquired loans.  The Covered Loan portfolio yielded 14.38% during the fourth quarter of 2014, compared to 16.22% and 13.66% during the third quarter of 2014 and fourth quarter of 2013, 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%.

Noninterest Income

Noninterest income for the fourth quarter of 2014 totaled $2.1 million, a decrease of $55,000, or 3%, compared to the third quarter of 2014 and an increase of $309,000, or 17%, compared to the fourth quarter of 2013.  The decrease in noninterest income in the fourth quarter of 2014 compared to the third quarter of 2014 resulted primarily from a decrease in service fees and charges (down $43,000).

The increase in noninterest income in the fourth quarter of 2014 compared to the fourth quarter of 2013 resulted primarily from increases in service fees and charges (up $220,000) and bank card fees (up $160,000) due primarily to the Britton & Koontz acquisition and increased customer transactions, which was partially offset by a decrease in the amortization of the FDIC receivable (down $57,000).

Noninterest Expense

Noninterest expense for the fourth quarter of 2014 totaled $10.2 million, an increase of $208,000, or 2%, compared to the third quarter of 2014 and an increase of $1.4 million, or 16%, compared to the fourth quarter of 2013. The increase in noninterest expense in the fourth quarter of 2014 compared to the third quarter of 2014 resulted primarily from higher compensation and benefits (up $308,000) and foreclosed assets (up $132,000) expenses, which were partially offset by lower other expense (down $174,000) and franchise and shares taxes (down $163,000).

The increase in noninterest expense for the fourth quarter of 2014 compared to the fourth quarter of 2013 primarily relates to the Britton & Koontz acquisition.

Non-GAAP Reconciliation 

This news release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). The Company's management uses this non-GAAP financial information in its analysis of the Company's performance. In this news release, information is included which excludes acquired loans and the impact of merger-related expenses.  Management believes the presentation of this non-GAAP financial information provides useful information that is essential to a proper understanding of the Company's financial position and core operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial information presented by other companies. 

This news release contains certain forward‑looking statements. Forward‑looking statements can be identified by the fact that they do not relate strictly to historical or current facts.  They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may."

Forward‑looking statements, by their nature, are subject to risks and uncertainties.  A number of factors ‑ many of which are beyond our control ‑ could cause actual conditions, events or results to differ significantly from those described in the forward‑looking statements.  Home Bancorp's Annual Report on Form 10-K for the year ended December 31, 2013, 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.