Home Bancorp Announces 2020 Fourth Quarter Results And Declares Quarterly Dividend

LAFAYETTE, La., Jan. 26, 2021 /PRNewswire/ -- Home Bancorp, Inc. (Nasdaq: "HBCP") (the "Company"), the parent company for Home Bank, N.A. (the "Bank") (www.home24bank.com), reported financial results for the fourth quarter of 2020.  For the quarter, the Company reported net income of $11.6 million, or $1.36 per diluted common share ("diluted EPS"), up $2.8 million from $8.8 million, or $1.01 diluted EPS, for the third quarter of 2020.

"2020 was a very challenging year for the Company and our customers with the impact of the COVID-19 pandemic and economic crisis", said John W. Bordelon, Chairman, President and Chief Executive Officer of the Company and the Bank.  "The Bank remains well positioned with the reserve builds we made in the first half of 2020 to withstand potential losses given the impact of the ongoing COVID-19 pandemic on economic conditions and credit quality in our markets."

"I am proud of the commitment by our employees to serve our communities and remain focused on loan and deposit growth in this challenging environment.  They are ready to assist customers in the second round of the Paycheck Protection Program." 

"Our customers have proven to be resilient during troubling times and we will weather the storm together."

COVID-19 Response

Banking operations remain unencumbered by state and local government COVID-19 restrictions. However, we have adapted to protect our employees and customers by working remotely, enhancing cleaning procedures, and enacting several other measures to reduce the risk of transmission of the virus. State government imposed COVID-19 restrictions continue to be in place within our Louisiana and Mississippi markets. The restrictions primarily place limits on capacity and hours of operation of certain businesses.

During the second and third quarters of 2020, the Company funded approximately 3,072 loans totaling $262.2 million under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP").  At December 31, 2020, the total recorded net investment in PPP loans was $221.2 million, of which approximately 2,495 loans with an aggregate outstanding balance of $70.5 million were for amounts of $150,000 or less.

To give immediate financial support to our customers, the Company began providing principal and/or interest payment relief options in March 2020.  When we last reported the level of such deferrals in our third quarter Form 10-Q (as of September 30, 2020), $70.2 million, or 4% of total loans, were under deferral agreements. As of December 31, 2020, the level of deferrals decreased to $36.0 million, or 2% of total loans. The level of COVID-19 related deferrals formerly totaled $558.8 million, or 28% of total loans, at June 30, 2020. Of the loans that have exited deferral agreements, $469.2 million, or 98%, were current and performing as of December 31, 2020.

Fourth Quarter 2020 Highlights

  • Net income totaled $11.6 million, up $2.8 million, or 32%, from the prior quarter primarily due to a $1.5 million increase in interest income on loans and the release of $1.3 million in the allowance for credit losses on unfunded lending commitments.
  • Loan income from the recognition of deferred PPP lender fees totaled $2.2 million, up $1.1 million from the prior quarter. Loan accretion income from acquired loans totaled $1.7 million, up $847,000 compared to the prior quarter.
  • A revision to the Company's estimate of credit loss on unfunded lending commitments led to a release of $1.3 million in reserves through noninterest expense and a $740,000 (net of tax) increase to retained earnings to adjust the impact of CECL adoption.
  • Loans totaled $2.0 billion at December 31, 2020, up $24.7 million, or 5% annualized, from September 30, 2020. Excluding PPP loans, loan growth during the same comparative period was up $57.9 million, or 14% annualized.
  • For the second consecutive quarter, the Company recorded no provision for loan losses. In light of our reserve builds during the first half of 2020, no additional provisions were made.
  • The allowance for loan losses totaled $33.0 million, or 1.66% of total loans, at December 31, 2020. The allowance for credit losses ("ACL"), which includes the allowance for unfunded lending commitments, totaled $34.4 million, or 1.74% of total loans, at December 31, 2020. Excluding PPP loans, the ratio of allowance for loan losses to total loans and the ratio for allowance for credit losses was 1.87% and 1.96%, respectively, at such date.
  • Nonperforming assets totaled $20.0 million, or 0.77% of total assets, down $4.9 million, or 20%, from September 30, 2020 primarily due to pay-downs on nonaccrual loans.
  • Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.68% and 15.18% at December 31, 2020, compared to 9.44% and 15.29% at September 30, 2020.
  • The net interest margin was 4.11% for the fourth quarter of 2020, up 29 basis points from the third quarter of 2020 primarily due to an increase in interest income on loans and further aided by a decrease in the cost of deposits.
  • The average yield on total interest-bearing deposits was 0.50% for the fourth quarter of 2020, down 10 basis points from the third quarter of 2020.

Loans

Loans totaled $2.0 billion at December 31, 2020, up $24.7 million, or 1%, from September 30, 2020. The following table summarizes the changes in the Company's loan portfolio from September 30, 2020 to December 31, 2020. 










December 31,


September 30,


Increase (Decrease)

(dollars in thousands)


2020


2020


Amount


Percent

Real estate loans:









One- to four-family first mortgage


$

395,638



$

409,282



$

(13,644)



(3)

%

Home equity loans and lines


67,700



67,766



(66)




Commercial real estate


750,623



707,638



42,985



6


Construction and land


221,823



201,575



20,248



10


Multi-family residential


87,332



86,619



713



1


Total real estate loans


1,523,116



1,472,880



50,236



3


Other loans:









Commercial and industrial


417,926



443,480



(25,554)



(6)


Consumer


38,912



38,937



(25)




Total other loans


456,838



482,417



(25,579)



(5)


Total loans


$

1,979,954



$

1,955,297



$

24,657



1

%

During the fourth quarter of 2020, substantial commercial real estate and construction and land loan growth was partially offset by pay-downs of commercial and industrial loans and residential mortgages. The change in commercial and industrial loans included a decrease in PPP loans of $33.3 million, or 13%, from September 30, 2020. Residential mortgages declined primarily due to refinances as borrowers sought to acquire lower interest rates.

Commercial real estate ("CRE") loan growth was fairly evenly distributed across our major Louisiana markets and was primarily attributable to non-owner-occupied loans to borrowers outside of industry sectors that have been subject to increased monitoring during the COVID-19 pandemic. At December 31, 2020, CRE loans within our Acadiana and New Orleans markets accounted for approximately 65% of our total commercial real estate portfolio.

Construction and land ("C&D") loan growth was spread across our New Orleans, Acadiana and Baton Rouge markets and was primarily driven by non-residential construction projects. At December 31, 2020, C&D loans within our Acadiana, New Orleans, and Northshore markets accounted for approximately 70% of our total construction and land portfolio.

Credit Quality and Allowance for Credit Losses

Nonperforming assets ("NPAs"), totaled $20.0 million, or 0.77% of total assets at December 31, 2020, down $4.9 million, or 20%, from $24.8 million, or 0.96% of total assets, at September 30, 2020.

The Company recorded net loan charge-offs of $39,000 during the fourth quarter of 2020, compared to net loan charge-offs of $821,000 for the third quarter of 2020.

At December 31, 2020, loans under interest and/or principal payment deferral agreements due to the COVID-19 crisis totaled $36.0 million, or 2% of total loans, down from $70.2 million, or 4% of total loans, as of September 30, 2020. Of the loans that have exited deferral agreements, $469.2 million, or 98%, were current and performing as of December 31, 2020.

The Company recorded no provision for loan losses for the fourth quarter of 2020. Upon review of our allowance for loan losses in light of, among other factors, our reserve builds during the first half of 2020, we determined that no additional provision was required during the quarter in order to reflect the expected losses for the full lives of the loans in our portfolio. The provision for loan losses for the year ended December 31, 2020 totaled $12.7 million, up $9.7 million from the prior year.  Changes in expected losses consider various factors including the changing economic activity, potential mitigating effects of governmental stimulus, the duration of the health crisis, customer specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.

In addition to the allowance for loan losses, our allowance for credit losses includes an allowance for unfunded lending commitments. The allowance for unfunded lending commitments amounted to $1.4 million at December 31, 2020 compared to $3.6 million at September 30, 2020. During the fourth quarter of 2020, we revised our estimate of losses on unfunded lending commitments which resulted in an aggregate release of $2.2 million of this allowance.  Of the $2.2 million release of the allowance for unfunded lending commitments, $1.3 million was recognized as a reduction of non-interest expense and $940,000 ($740,000 net of taxes) was recognized as an increase to retained earnings.

The following table provides a summary of the loan portfolio and related reserves at December 31, 2020. We have separately identified certain information regarding PPP loans which, due to the existence of full repayment guarantees from the SBA as well as the likelihood that the vast majority of such loans will be forgiven, we believe entail minimal credit risk to the Company.

(dollars in thousands)


Total Loans


PPP Loans


Total ACL


ACL to
Total Loans


ACL to
Total Non-PPP
Loans

December 31, 2020











Retail CRE


$

190,085



$



$

6,641



3.49

%


3.49

%

Hotels and short-term rentals


103,875



3,587



5,754



5.54



5.74


Restaurants and bars


92,789



30,990



3,106



3.35



5.03


Energy


31,304





1,638



5.23



5.23


Credit cards


4,012





403



10.04



10.04


Other loans


1,557,889



186,643



15,421



0.99



1.12


Total


$

1,979,954



$

221,220



$

32,963



1.66

%


1.87

%












Unfunded lending commitments(1)






1,425






Total


$

1,979,954



$

221,220



$

34,388



1.74

%


1.96

%














(1)

At December 31, 2020, the allowance of $1.4 million related to unfunded lending commitments of $336.9 million. The ACL on unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.

Investment Securities

The following table summarizes the composition of the Company's investment securities portfolio at December 31, 2020.

(dollars in thousands)


Recorded
Investment

Available for sale



U.S. agency mortgage-backed


$

142,812


Collateralized mortgage obligations


75,620


Municipal bonds


28,011


U.S. government agency


6,255


Corporate bonds


2,054


Total available for sale


254,752


Held to Maturity



Municipal Bonds


2,934


Total investment securities


$

257,686





Securities available for sale ("AFS") made up 99% of total investment securities and net unrealized gains on AFS securities totaled $6.5 million at December 31, 2020.

Deposits

Total deposits were $2.2 billion at December 31, 2020, up $6.3 million, or less than 1%, from September 30, 2020. The following table summarizes the changes in the Company's deposits from September 30, 2020 to December 31, 2020.










December 31,


September 30,


Increase/(Decrease)

(dollars in thousands)


2020


2020


Amount


Percent

Demand deposits


$

615,700



$

629,345



$

(13,645)



(2)

%

Savings


250,165



242,849



7,316



3


Money market


333,078



336,310



(3,232)



(1)


NOW


646,085



620,081



26,004



4


Certificates of deposit


368,793



378,909



(10,116)



(3)


Total deposits


$

2,213,821



$

2,207,494



$

6,327



%

Net Interest Income

The net interest margin ("NIM") increased 29 basis points from 3.82% for the third quarter of 2020 to 4.11% for the fourth quarter of 2020 primarily due to an increase in loan income and further aided by a decrease in the cost of deposits.

The average loan yield was 5.20% for the fourth quarter of 2020, up 26 basis points from the third quarter of 2020. Loan income from the recognition of deferred PPP lender fees totaled $2.2 million during the fourth quarter of 2020, up $1.1 million, or 103%, compared to the third quarter of 2020. As a result, PPP loans positively impacted the average loan yield by 11 basis points and the NIM by 5 basis points during the fourth quarter of 2020. During the third quarter of 2020, PPP loans negatively impacted the average loan yield by 34 basis points and the NIM by 14 basis points. The receipt of forgiveness payments on PPP loans during the fourth quarter accelerated the recognition of deferred fees.  Management anticipates this trend to continue into the first quarter of 2021 as the forgiveness process for PPP loans under $150,000 is expected to be expedited. At December 31, 2020, the total recorded net investment in PPP loans was $221.2 million, of which $70.5 million, or 32%, were for amounts of $150,000 or less. Unrecognized PPP lender fees totaled $5.4 million at December 31, 2020.

Loan accretion income from acquired loans totaled $1.7 million for the fourth quarter of 2020, up $847,000, or 100%, compared to the third quarter of 2020. During the fourth quarter, the Company received pay-downs on an acquired CRE  and residential mortgage loans, which accelerated the accretion of discount into interest income on loans.

The average yield on total interest-bearing deposits was 0.50% for the fourth quarter of 2020, down 10 basis points from the third quarter of 2020.

The following table summarizes 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 have been calculated using a marginal tax rate of 21%.



For the Three Months Ended



December 31, 2020


September 30, 2020

(dollars in thousands)


Average
Balance


Interest


Average
Yield/ Rate


Average
Balance


Interest


Average
Yield/ Rate

Interest-earning assets:













Loans receivable


$

1,984,969



$

26,267



5.20

%


$

1,971,174



$

24,769



4.94

%

Investment securities (TE)


246,547



1,002



1.66



252,314



967



1.56


Other interest-earning assets


182,833



99



0.22



170,957



106



0.25


Total interest-earning assets


$

2,414,349



$

27,368



4.46

%


$

2,394,445



$

25,842



4.25

%














Interest-bearing liabilities:













Deposits:













Savings, checking, and money market


$

1,217,430



$

970



0.32

%


$

1,195,455



$

1,136



0.38

%

Certificates of deposit


375,597



1,017



1.08



381,949



1,232



1.28


Total interest-bearing deposits


1,593,027



1,987



0.50



1,577,404



2,368



0.60


Other borrowings


5,539



53



3.81



5,539



53



3.81


FHLB advances


29,742



129



1.74



34,612



149



1.73


Total interest-bearing liabilities


$

1,628,308



$

2,169



0.53

%


$

1,617,555



$

2,570



0.63

%














Net interest spread (TE)






3.93

%






3.62

%

Net interest margin (TE)






4.11

%






3.82

%

Noninterest Income

Noninterest income for the fourth quarter of 2020 was $4.1 million, up $256,000, or 7%, from the third quarter of 2020 due primarily to gains on the sale of loans (up $178,000) and other income (up $97,000). Other income increased primarily due to fees earned on a risk participation agreement entered into during the fourth quarter of 2020.

Noninterest Expense

Noninterest expense for the fourth quarter of 2020 totaled $14.7 million, down $1.4 million, or 9%, compared to the third quarter of 2020.

The Company released $2.2 million of the allowance for credit losses on unfunded lending commitments during the fourth quarter of 2020, reflecting, among other factors, refinement of our estimate of future funding rates on unfunded lending commitments. The release of a portion of the allowance for unfunded loan commitments reduced noninterest expense by $1.3 million during  the fourth quarter of 2020, with the remaining $940,000 of the release ($740,000 net of taxes) being recorded as an increase in retained earnings.

Compensation and benefits expense was down $323,000 from the third quarter of 2020 primarily due to the absence of bonuses, which were paid during the third quarter. 

Regulatory fees were down $153,000 from the third quarter of 2020 due to a decrease in the FDIC assessment for the fourth quarter. The Company's improved financial condition led to a more favorable assessment rate.

Other expenses were up $198,000 from the third quarter of 2020 primarily due to certain loan servicing fees and expenses. 

Capital and Liquidity

The Company's tangible common equity ratio was 10.23% and 9.93% at December 31, 2020 and September 30, 2020, respectively. At December 31, 2020, the Bank's preliminary Tier 1 leverage capital ratio was 9.68%, up 24 basis points from September 30, 2020, and preliminary total risk-based capital ratio was 15.18%, down 11 basis points from September 30, 2020. Loans covered under the PPP are included in the Bank's Tier 1 leverage capital ratio.

The following table summarizes the Company's primary and secondary sources of liquidity.



December 31,

(dollars in thousands)


2020

Cash and cash equivalents


$

187,952


Unpledged investment securities, amortized cost


125,342


FHLB advance availability


787,232


Unsecured lines of credit


55,000


Federal Reserve discount window availability


500


Total primary and secondary liquidity


$

1,156,026


Dividend and Share Repurchases

The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.22 per share payable on February 19, 2021, to shareholders of record as of February 8, 2021.

The Company repurchased 91,612 shares of its common stock during the fourth quarter of 2020 at an average price per share of $26.23 under the Company's 2020 Repurchase Plan. An additional 300,080 shares remain eligible for purchase under the 2020 Repurchase Plan.  The book value per share and tangible book value per share of the Company's common stock was $36.82 and $29.60, respectively, at December 31, 2020.

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 intangible assets and PPP loans. 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 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.  A reconciliation on non-GAAP information included herein to GAAP is presented below.









For the Three Months Ended

(dollars in thousands, except per share data)


December 31,
2020


September 30,
2020


December 31,
2019








Reported net income


$

11,585



$

8,782



$

6,606


Add: Core deposit intangible amortization, net tax


258



267



302


Non-GAAP tangible income


$

11,843



$

9,049



$

6,908









Total assets


$

2,591,850



$

2,579,200



$

2,200,465


Less: Intangible assets


63,112



63,439



64,472


Non-GAAP tangible assets


$

2,528,738



$

2,515,761



$

2,135,993









Total shareholders' equity


$

321,842



$

313,324



$

316,329


Less: Intangible assets


63,112



63,439



64,472


Non-GAAP tangible shareholders' equity


$

258,730



$

249,885



$

251,857









Total loans


$

1,979,954



$

1,955,297



$

1,714,361


Less: PPP loans


221,220



254,487




Total loans excluding PPP loans


$

1,758,734



$

1,700,810



$

1,714,361









Allowance for loan losses to total loans


1.66

%


1.69

%


1.04

%

Less: PPP loans


0.21



0.25




Non-GAAP allowance for loan losses to total loans


1.87

%


1.94

%


1.04

%








Return on average equity


14.55

%


11.17

%


8.31

%

Add: Average intangible assets


4.04



3.27



2.62


Non-GAAP return on average tangible common equity


18.59

%


14.44

%


10.93

%








Common equity ratio


12.42

%


12.15

%


14.38

%

Less: Intangible assets


2.19



2.22



2.59


Non-GAAP tangible common equity ratio


10.23

%


9.93

%


11.79

%








Book value per share


$

36.82



$

35.48



$

34.19


Less: Intangible assets


7.22



7.18



6.97


Non-GAAP tangible book value per share


$

29.60



$

28.30



$

27.22









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, 2019,  as supplemented by its Current Report on Form 8-K dated April 28, 2020, describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for credit losses, the impact of the COVID-19 pandemic, 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

(Unaudited)










(dollars in thousands)


December 31,
2020


September 30,
2020


%
Change


December 31,
2019

Assets









Cash and cash equivalents


$

187,952



$

185,836



1

%


$

39,847


Interest-bearing deposits in banks


349



349





449


Investment securities available for sale, at fair value


254,752



251,578



1



257,321


Investment securities held to maturity


2,934



2,942





7,149


Mortgage loans held for sale


9,559



21,045



(55)



6,990


Loans, net of unearned income


1,979,954



1,955,297



1



1,714,361


Allowance for loan losses


(32,963)



(33,002)





(17,868)


Total loans, net of allowance for loan losses


1,946,991



1,922,295



1



1,696,493


Office properties and equipment, net


45,497



45,696





46,425


Cash surrender value of bank-owned life insurance


40,334



40,184





39,466


Goodwill and core deposit intangibles


63,112



63,439



(1)



64,472


Accrued interest receivable and other assets


40,370



45,836



(12)



41,853


Total Assets


$

2,591,850



$

2,579,200





$

2,200,465




















Liabilities









Deposits


$

2,213,821



$

2,207,494



%


$

1,820,975


Other Borrowings


5,539



5,539





5,539


Federal Home Loan Bank advances


28,824



31,445



(8)



40,620


Accrued interest payable and other liabilities


21,824



21,398



2



17,002


Total Liabilities


2,270,008



2,265,876





1,884,136











Shareholders' Equity









Common stock


87



88



(1)

%


93


Additional paid-in capital


164,988



165,522





168,545


Common stock acquired by benefit plans


(2,789)



(2,880)



3



(3,159)


Retained earnings


154,282



145,373



6



150,158


Accumulated other comprehensive income


5,274



5,221



1



692


Total Shareholders' Equity


321,842



313,324



3



316,329


Total Liabilities and Shareholders' Equity


$

2,591,850



$

2,579,200





$

2,200,465


















 

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME

(Unaudited)



For the Three Months Ended

(dollars in thousands, except per share data)


December 31,
2020


September 30,
2020


%
Change


December 31,
2019


%
Change

Interest Income











Loans, including fees


$

26,267



$

24,769



6

%


$

23,842



10

%

Investment securities


1,002



967



4



1,341



(25)


Other investments and deposits


99



106



(7)



261



(62)


Total interest income


27,368



25,842



6



25,444



8


Interest Expense











Deposits


1,987



2,368



(16)

%


3,934



(49)

%

Other borrowings


53



53





54



(2)


Federal Home Loan Bank advances


129



149



(13)



198



(35)


Total interest expense


2,169



2,570



(16)



4,186



(48)


Net interest income


25,199



23,272



8



21,258



19


Provision for loan losses








713



(100)


Net interest income after provision for loan losses


25,199



23,272



8



20,545



23


Noninterest Income











Service fees and charges


1,117



1,123



(1)

%


1,544



(28)

%

Bank card fees


1,273



1,331



(4)



1,102



16


Gain on sale of loans, net


1,082



904



20



316



242


Income from bank-owned life insurance


276



231



19



238



16


Loss on sale of assets, net








1



(100)


Other income


302



205



47



298



1


Total noninterest income


4,050



3,794



7



3,499



16


Noninterest Expense











Compensation and benefits


9,417



9,740



(3)

%


9,438



%

Occupancy


1,719



1,686



2



1,713




Marketing and advertising


386



288



34



579



(33)


Data processing and communication


1,913



1,851



3



1,829



5


Professional fees


187



197



(5)



172



9


Forms, printing and supplies


154



140



10



169



(9)


Franchise and shares tax


331



378



(12)



248



33


Regulatory fees


373



526



(29)



113



230


Foreclosed assets, net


181



162



12



228



(21)


Amortization of acquisition intangible


327



338



(3)



382



(14)


Provision for credit losses on unfunded lending commitments


(1,272)










Other expenses


1,008



810



24



881



14


Total noninterest expense


14,724



16,116



(9)



15,752



(7)


Income before income tax expense


14,525



10,950



33



8,292



75


Income tax expense


2,940



2,168



36



1,686



74


Net income


$

11,585



$

8,782



32



$

6,606



75













Earnings per share - basic


$

1.37



$

1.01



36

%


$

0.74



85

%

Earnings per share - diluted


$

1.36



$

1.01



35



$

0.73



86













Cash dividends declared per common share


$

0.22



$

0.22



%


$

0.22



%

 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION

(Unaudited)



For the Three Months Ended

(dollars in thousands, except per share data)


December 31,
2020


September 30,
2020


%
Change


December 31,
2019


%
Change

EARNINGS DATA











Total interest income


$

27,368



$

25,842



6

%


$

25,444



8

%

Total interest expense


2,169



2,570



(16)



4,186



(48)


Net interest income


25,199



23,272



8



21,258



19


Provision for loan losses








713



(100)


Total noninterest income


4,050



3,794



7



3,499



16


Total noninterest expense


14,724



16,116



(9)



15,752



(7)


Income tax expense


2,940



2,168



36



1,686



74


Net income


$

11,585



$

8,782



32



$

6,606



75













AVERAGE BALANCE SHEET DATA











Total assets


$

2,599,835



$

2,582,239



1

%


$

2,219,049



17

%

Total interest-earning assets


2,414,349



2,394,445



1



2,021,316



19


Total loans


1,984,969



1,971,174



1



1,712,035



16


Total interest-bearing deposits


1,593,027



1,577,404



1



1,384,250



15


Total interest-bearing liabilities


1,628,308



1,617,555



1



1,433,359



14


Total deposits


2,226,526



2,208,825



1



1,835,026



21


Total shareholders' equity


316,679



312,841



1



315,487















SELECTED RATIOS (1)











Return on average assets


1.77

%


1.35

%


31

%


1.18

%


50

%

Return on average equity


14.55



11.17



30



8.31



75


Common equity ratio


12.42



12.15



2



14.38



(14)


Efficiency ratio (2)


50.34



59.54



(15)



63.63



(21)


Average equity to average assets


12.18



12.12





14.22



(14)


Tier 1 leverage capital ratio (3)


9.68



9.44



3



11.17



(13)


Total risk-based capital ratio (3)


15.18



15.29



(1)



15.28



(1)


Net interest margin (4)


4.11



3.82



8



4.14



(1)













SELECTED NON-GAAP RATIOS (1)











Tangible common equity ratio (5)


10.23

%


9.93

%


3

%


11.79

%


(13)

%

Return on average tangible common equity (6)


18.59



14.44



29



10.93



70













PER SHARE DATA











Earnings per share - basic


$

1.37



$

1.01



36

%


$

0.74



85

%

Earnings per share - diluted


1.36



1.01



35



0.73



86


Book value at period end


36.82



35.48



4



34.19



8


Tangible book value at period end


29.60



28.30



5



27.22



9


Shares outstanding at period end


8,740,104



8,831,406



(1)



9,252,418



(6)


Weighted average shares outstanding











Basic


8,484,785



8,627,318



(2)

%


8,953,203



(5)

%

Diluted


8,508,740



8,651,066



(2)



9,018,142



(6)




(1)

With the exception of end-of-period ratios, all ratios are based on average daily 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 preliminary end-of-period ratios for the Bank only and are subject to change.

(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 21%.

(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.

 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY CREDIT QUALITY INFORMATION

(Unaudited)



December 31, 2020


September 30, 2020


December 31, 2019

(dollars in thousands)


Acquired


Originated


Total


Acquired


Originated


Total


Acquired


Originated


Total

CREDIT QUALITY (1)(2)



















Nonaccrual loans (3)


$

8,748



$

9,929



$

18,677



$

10,639



$

12,204



$

22,843



$

9,758



$

14,628



$

24,386


Accruing loans past due 90 days and over




2



2





10



10








Total nonperforming loans


8,748



9,931



18,679



10,639



12,214



22,853



9,758



14,628



24,386


Foreclosed assets and ORE


880



422



1,302



1,029



956



1,985



2,363



1,793



4,156


Total nonperforming assets


9,628



10,353



19,981



11,668



13,170



24,838



12,121



16,421



28,542


Performing troubled debt restructurings


573



1,512



2,085



480



910



1,390



475



1,903



2,378


Total nonperforming assets and troubled debt restructurings


$

10,201



$

11,865



$

22,066



$

12,148



$

14,080



$

26,228



$

12,596



$

18,324



$

30,920





















Nonperforming assets to total assets






0.77

%






0.96

%






1.30

%

Nonperforming loans to total assets






0.72







0.89







1.11


Nonperforming loans to total loans






0.94







1.17







1.42


Allowance for loan losses to nonperforming assets






164.97







132.87







62.60


Allowance for loan losses to nonperforming loans






176.47







144.41







73.27


Allowance for loan losses to total loans






1.66







1.69







1.04


Allowance for credit losses to total loans(4)






1.74







1.87







1.04





















Year-to-date loan charge-offs






$

2,601







$

2,522







$

1,577


Year-to-date loan recoveries






335







295







83


Year-to-date net loan charge-offs






$

2,266







$

2,227







$

1,494


Annualized YTD net loan charge-offs to average loans






0.12

%






0.16

%






0.09

%



(1)

Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. Due to the adoption of CECL, PCD loans of $390,000 and $2.1 million are included in nonperforming loans at December 31, 2020 and September 30, 2020, respectively. Prior to January 1, 2020, these loans were classified as PCI and excluded from nonperforming loans because they continued to earn interest income from the accretable yield at the pool level. With the adoption of CECL, the pools were discontinued and performance is based on contractual terms for individual loans.

(2)

It is our policy to cease accruing interest on loans 90 days or more past due. Nonperforming assets consist of nonperforming loans, foreclosed assets and other real estate (ORE).  Foreclosed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure. ORE consists of closed or unused bank buildings.

(3)

Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $6.5 million, $7.2 million and $7.6 million at December 31, 2020, September 30, 2020 and December 31, 2019, respectively. Acquired restructured loans placed on nonaccrual totaled $3.5 million, $1.2 million and $2.2 million at December 31, 2020, September 30, 2020 and December 31, 2019, respectively.

(4)

The allowance for credit losses includes $1.4 million and $3.6 million for unfunded lending commitments at December 31, 2020 and September 30, 2020, respectively. The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.

 

SOURCE Home Bancorp, Inc.

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