Investor Relations

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. 

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.

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%.

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.

SOURCE Home Bancorp, Inc.