Contact Us
Joseph Zanco
Chief Financial Officer
(337) 237-1960
investor@home24bank.com
Home Bank News
Oct 23, 2018

Home Bancorp, Inc. (Nasdaq: "HBCP") (the "Company"), the parent company for Home Bank, N.A. (the "Bank") (www.home24bank.com), reported record net income of $8.3 million for the third quarter of...

Business News
Loading...
Home Bancorp Announces Additional Deferred Tax Asset Re-Measurement Charge - Revises Results For Fourth Quarter And Year Ended December 31, 2017

LAFAYETTE, La., March 9, 2018 /PRNewswire/ -- Home Bancorp, Inc. (Nasdaq: "HBCP") (the "Company"), the parent company for Home Bank, N.A. (the "Bank") (www.home24bank.com), today announced an additional deferred tax asset ("DTA") re-measurement charge of $956,000 applicable to the fourth quarter of 2017 related to the recently enacted Tax Cuts and Jobs Act of 2017 (the "Tax Act").  The Company had previously announced a charge to the DTA of $1.8 million during the fourth quarter of 2017 resulting from the Tax Act. 

Home Bank Logo. (PRNewsFoto/Home Bancorp, Inc.) (PRNewsFoto/)

The additional DTA charge resulted from an update of the core deposit intangible asset and loan interest rate mark valuations associated with the Company's acquisition of St. Martin Bancshares, Inc. ("St. Martin") on December 6, 2017.  These valuations revised the goodwill recorded on the St. Martin transaction from $46.2 million to $49.3 million and increased the associated charge to the DTA from $1.8 million to $2.7 million.  Due to the lower tax rates prescribed by the Tax Act, an additional write down of the DTA by $956,000, reflected as income tax expense, is reflected in our revised results.   Under generally accepted accounting principles, the Company has a reasonable time after the acquisition (not to extend beyond one year) to obtain information necessary to measure the estimates of fair values of acquired assets and liabilities.  The receipt of additional information on the core deposit intangible and loan interest rate mark valuation from St. Martin subsequent to our initial press release of January 30, 2018 but prior to the completion of our audited financial statements for 2017 requires us to recognize the additional DTA charge in the fourth quarter of 2017.  While subject to further adjustments, we do not expect additional changes of a material amount to our valuations of St. Martin's assets and liabilities.

"We are excited about the positive economic impact likely to result from lower corporate tax rates," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank, "even though the lower rates require us to further write down our deferred tax asset."

The following table provides selected financial data at and for the three months and year ended December 31, 2017 as originally reported on January 30, 2018, and as revised after this additional charge.


At December 31, 2017



Currently Reported


Previously Reported

Total Assets

$

2,228,120,838

$

2,229,076,363

Total loans, net of unearned income


1,657,794,751


1,664,389,988

Intangible assets


68,033,472


63,093,801

Retained earnings


117,312,630


118,267,606

Total Shareholders' Equity


277,870,726


278,825,702

 


For the Three Months ended

December 31, 2017




Currently
Reported


Previously
Reported


Income Tax Expense

$

5,508,098

$

4,552,573


Net Income


3,242,436


4,197,961


Earnings per share – basic


0.43


0.56


Earnings per share - diluted


0.41


0.54


Book value per share at period end


29.57


29.68


Tangible book value per share at period end


22.33


22.96


Return on average assets


0.73

%

0.94

%

Return on average equity


5.92


7.66


Return on average tangible common equity


6.99


8.95


Common equity ratio


12.47


12.51


Tangible common equity ratio


9.71


9.96


 


For the Year ended

December 31, 2017



Currently
Reported


Previously
Reported

Income Tax Expense

$

12,492,891

$

11,537,366

Net Income


16,823,987


17,779,512

Earnings per share – basic


2.36


2.50

Earnings per share - diluted


2.28


2.41

Book value per share at period end


29.57


29.68

Tangible book value per share at period end


22.33


22.96

 

Non-GAAP Reconciliation 










For the Three Months Ended
December 31, 2017



Currently
Reported



Previously
Reported


Book value per share

$

29.57


$

29.68


Less: Intangible assets


7.24



6.72


Non-GAAP tangible book value per share

$

22.33


$

22.96









Common equity ratio


12.47

%


12.51

%

Less: Intangible assets


2.76



2.55


Non-GAAP tangible common equity ratio


9.71

%


9.96

%








Return on average equity


5.92

%


7.66

%

Add: Intangible assets


1.07



1.29


Non-GAAP return on tangible common equity


6.99

%


8.95

%

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 intangible assets.  Management believes the presentation of this non-GAAP financial information provides useful information that is helpful to a full 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 is it 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, 2016, 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























December 31,


December 31,


%



September 30,



2017


2016


Change



2017


Assets










Cash and cash equivalents

$    150,417,829


$     29,314,741


413

%


$     51,625,554


Interest-bearing deposits in banks

2,421,000


1,884,000


29



1,191,000

*

Investment securities available for sale, at fair value

234,993,436


183,729,857


28



202,196,322

*

Investment securities held to maturity

13,033,590


13,365,479


(3)



13,117,994


Mortgage loans held for sale

5,873,132


4,156,186


41



5,617,481

*

Loans, net of unearned income

1,657,794,751


1,227,833,309


35



1,227,393,063


Allowance for loan losses

(14,807,278)


(12,510,708)


18



(13,423,922)

*

     Total loans, net of allowance for loan losses

1,642,987,473


1,215,322,601


35



1,213,969,141


Office properties and equipment, net

45,604,752


39,566,639


15



38,700,323


Cash surrender value of bank-owned life insurance

28,903,913


20,149,553


43



20,510,427

*

Accrued interest receivable and other assets

103,885,713


49,242,977


111



40,433,390

*

Total Assets

$ 2,228,120,838


$ 1,556,732,033


43



$ 1,587,361,632






















Liabilities










Deposits

$ 1,866,227,328


$ 1,248,072,453


50

%


$ 1,319,712,786


Federal Home Loan Bank advances

71,825,595


118,533,173


(39)



64,804,079


Accrued interest payable and other liabilities

12,197,189


10,283,383


19



10,219,841


Total Liabilities

1,950,250,112


1,376,889,009


42



1,394,736,706












Shareholders' Equity










Common stock

93,955


73,502


28

%


74,122


Additional paid-in capital

165,341,415


79,425,604


108



81,376,252


Common stock acquired by benefit plans

(3,922,413)


(4,315,223)


(9)



(4,033,790)

*

Retained earnings 

117,312,630


104,647,375


12



115,129,834


Accumulated other comprehensive income 

(954,861)


11,766


(8,215)



78,508


Total Shareholders' Equity

277,870,726


179,843,024


55



192,624,926


Total Liabilities and Shareholders' Equity

$ 2,228,120,838


$ 1,556,732,033


43



$ 1,587,361,632


____________________________________________

*

Amounts at December 31, 2017 have been revised from amounts which were previously reported.

 

HOME BANCORP, INC. AND SUBSIDIARY



CONDENSED STATEMENTS OF INCOME



































 For The Three Months Ended 





 For the Year Ended 






 December 31,

%



 December 31, 


%




2017


2016


Change



2017


2016


Change



Interest Income















Loans, including fees

$ 20,420,278


$ 15,971,349


28

%


$ 69,167,352


$ 63,731,508


9

%


Investment securities

1,253,125


870,457


44



4,531,261


3,676,582


23



Other investments and deposits

296,680


80,775


267



699,235


276,224


153



Total interest income

21,970,083


16,922,581


30



74,397,848


67,684,314


10


















Interest Expense















Deposits

1,622,758


937,483


73

%


5,160,775


3,701,244


39

%


Federal Home Loan Bank advances

321,359


383,194


(16)



1,388,106


1,567,127


(11)



Total interest expense

1,944,117


1,320,677


47



6,548,881


5,268,371


24



Net interest income

20,025,966


15,601,904


28



67,848,967


62,415,943


9



Provision for loan losses

1,199,688


500,000


140



2,316,967


3,200,000


(28)



Net interest income after provision for loan losses

18,826,278


15,101,904


25



65,532,000


59,215,943


11


















Noninterest Income















Service fees and charges

1,246,049


977,049


28

%


4,229,041


4,060,906


4

%


Bank card fees

835,224


666,769


25



3,003,238


2,603,075


15



Gain on sale of loans, net

277,190


564,434


(51)



1,195,921


1,770,249


(32)



Income from bank-owned life insurance

132,725


121,355


9



493,598


482,653


2



(Loss) gain on the closure or sale of assets, net

(14,942)


(45,057)


67



(162,265)


595,523


(127)



Other income

203,050


343,144


(41)



1,202,530


1,644,758


(27)



Total noninterest income

2,679,296


2,627,694


2



9,962,063


11,157,164


(11)


















Noninterest Expense















Compensation and benefits

7,432,339


6,788,326


9

%


28,162,089


27,633,636


2

%


Occupancy

1,353,787


1,315,614


3



5,065,088


5,254,889


(4)



Marketing and advertising

205,895


413,437


(50)



1,007,639


1,062,935


(5)



Data processing and communication

1,252,871


1,142,859


10



4,328,944


4,967,028


(13)



Professional fees

770,800


185,616


315



1,590,118


983,445


62



Forms, printing and supplies

184,317


135,701


36



594,139


623,495


(5)



Franchise and shares tax

360,399


161,456


123



947,505


820,774


15



Regulatory fees

311,955


345,818


(10)



1,264,283


1,317,015


(4)



Foreclosed assets, net

(67,612)


186,049


(136)



(297,806)


139,578


(313)



Other expenses

950,289


1,282,621


(26)



3,515,186


3,994,022


(12)



Total noninterest expense

12,755,040


11,957,497


7



46,177,185


46,796,817


(1)



Income before income tax expense

8,750,534


5,772,101


52



29,316,878


23,576,290


24


*

Income tax expense

5,508,098


1,490,047


270



12,492,891


7,567,954


65


*

Net income

$  3,242,436


$  4,282,054


(24)



$ 16,823,987


$ 16,008,336


5

















*

Earnings per share - basic

$          0.43


$          0.62


(31)

%


$          2.36


$          2.34


1

%

*

Earnings per share - diluted

$          0.41


$          0.60


(32)



$          2.28


$          2.25


1


















Cash dividends declared per common share

$          0.14


$          0.12


17

%


$          0.55


$          0.41


34

%


____________________________________________

*

Amounts at and for the three months December 31, 2017 have been revised from amounts which were previously reported.

 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION































 For The Three Months Ended 





 For The Three  







 December 31, 


%



 Months Ended 



%




2017


2016


 Change 



 September 30, 2017 



 Change 



(dollars in thousands except per share data)














EARNINGS DATA














Total interest income

$       21,970


$       16,923


30

%


$                    17,666



24

%


Total interest expense

1,944


1,321


47



1,709



14



Net interest income

20,026


15,602


28



15,957



25



Provision for loan losses

1,200


500


140



660



82



Total noninterest income

2,679


2,628


2



2,293



17



Total noninterest expense

12,755


11,957


7



11,341



12


*

Income tax expense

5,508


1,491


269



2,159



155


*

Net income

$        3,242


$        4,282


(24)



$                      4,090



(21)

















AVERAGE BALANCE SHEET DATA













*

Total assets

$  1,765,594


$  1,545,831


14

%


$                1,573,668



12

%

*

Total interest-earning assets

1,645,847


1,439,103


14



1,473,743



12


*

Total loans

1,345,586


1,225,873


10



1,215,985



11



Total interest-bearing deposits

1,138,551


940,052


21



1,024,163



11



Total interest-bearing liabilities

1,206,408


1,061,377


14



1,090,794



11



Total deposits

1,471,756


1,235,471


19



1,308,388



13


*

Total shareholders' equity

217,387


178,808


22



191,608



14

















SELECTED RATIOS (1)













*

Return on average assets

0.73

%

1.11

%

(34)

%


1.04

%


(30)

%

*

Return on average equity

5.92


9.58


(38)



8.54



(31)


*

Common equity ratio

12.47


11.55


8



12.13



3



Efficiency ratio (2)

56.18


65.59


(14)



62.14



(10)



Average equity to average assets

12.31


11.57


6



12.18



1


*

Tier 1 leverage capital ratio(3) 

11.66


9.94


17



10.66



9


*

Total risk-based capital ratio(3) 

13.48


13.96


(3)



15.21



(11)



Net interest margin (4)

4.81


4.30


12



4.29



12

















SELECTED NON-GAAP RATIOS (1)













*

Tangible common equity ratio(5)

9.71

%

10.82

%

(10)

%


11.45

%


(15)

%

*

Return on average tangible common equity(6) 

6.99


10.62


(34)



9.37



(25)

















PER SHARE DATA













*

Earnings per share - basic

$          0.43


$          0.62


(31)



$                        0.58



(26)

%

*

Earnings per share - diluted

0.42


0.60


(30)



0.56



(25)


*

Book value at period end

29.57


24.47


21



25.99



14


*

Tangible book value at period end

22.33


22.73


(2)



24.34



(8)



Shares outstanding at period end

9,395,488


7,350,102


28

%


7,412,234



27



Weighted average shares outstanding














   Basic

7,514,205


6,897,135


9

%


7,006,513



7

%


   Diluted

7,799,341


7,165,278


9



7,281,164



7



____________________________________________

*

Amounts at and for the three months December 31, 2017 have been revised from amounts which were previously reported.


(1) 

With the exception of end-of-period ratios, all ratios are based on average monthly balances during the respective periods and are annualized where appropriate.


(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) 

Estimated 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%.


(5) 

Tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. See "Non-GAAP Reconciliation" for additional information.


(6) 

Return on average tangible common equity is net income plus amortization of core deposit intangible, net of taxes divided by average common shareholders' equity less average intangible assets. See "Non-GAAP Reconciliation" for additional information.

 

SOURCE Home Bancorp, Inc.

For further information: John W. Bordelon, President and CEO (337) 237-1960