(337) 237-1960
LAFAYETTE, La., Oct. 28, 2014 /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 $2.9 million for the third quarter of 2014, an increase of $124,000, or 5%, compared to the second quarter of 2014 and an increase of $394,000, or 16%, compared to the third quarter of 2013. Diluted earnings per share were $0.41 for the third quarter of 2014, an increase of $0.01, or 3% from the second quarter of 2014 and an increase of $0.04, or 11%, compared to the third quarter of 2013.
"Although asset growth was tempered during the quarter, we continue to be pleased with our prospects for additional customer growth," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "Our bankers are keenly focused on differentiating Home Bank by adding value in our customers' businesses and personal finances."
Loans and Credit Quality
Loans totaled $907.4 million at September 30, 2014, a decrease of $249,000 from June 30, 2014, and an increase of $226.5 million, or 33%, from September 30, 2013. The increase in loans outstanding at September 30, 2014 compared to September 30, 2013, primarily reflects our acquisition of Britton & Koontz Capital Corporation ("Britton & Koontz") and its wholly owned subsidiary, Britton & Koontz Bank, N.A. (Britton & Koontz Bank"), in February 2014. We acquired $298.7 million of total assets from Britton & Koontz, including $162.2 million of loans. During the third quarter of 2014, the decrease in our loan portfolio related primarily to commercial real estate (down $4.2 million), commercial and industrial loans (down $1.2 million) and home equity loans (down $925,000), which were offset by one- to four-family first mortgage (up $3.9 million), consumer (up $1.3 million) and construction and land loans (up $695,000).
The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.
|
September 30, |
December 31, |
Increase/(Decrease) |
||||||
|
(dollars in thousands) |
2014 |
2013 |
Amount |
Percent |
||||
|
Real estate loans: |
||||||||
|
One- to four-family first mortgage |
$ |
234,316 |
$ |
179,506 |
$ |
54,810 |
31 |
% |
|
Home equity loans and lines |
56,208 |
40,561 |
15,647 |
39 |
||||
|
Commercial real estate |
329,621 |
269,849 |
59,772 |
22 |
||||
|
Construction and land |
123,253 |
83,271 |
39,982 |
48 |
||||
|
Multi-family residential |
22,465 |
16,578 |
5,887 |
36 |
||||
|
Total real estate loans |
765,863 |
589,765 |
176,098 |
30 |
||||
|
Other loans: |
||||||||
|
Commercial and industrial |
95,535 |
77,533 |
18,002 |
23 |
||||
|
Consumer |
45,966 |
40,158 |
5,808 |
14 |
||||
|
Total other loans |
141,501 |
117,691 |
23,810 |
20 |
||||
|
Total loans |
$ |
907,364 |
$ |
707,456 |
$ |
199,908 |
28 |
% |
Nonperforming assets ("NPAs") totaled $22.6 million at September 30, 2014, a decrease of $4.0 million compared to June 30, 2014 and a decrease of $4.9 million compared to September 30, 2013. $18.0 million of the $22.6 million in NPAs at September 30, 2014 relates to our acquisitions of Statewide Bank, GS Financial Corp. and Britton & Koontz. The ratio of our total NPAs to total assets was 1.79% at September 30, 2014, compared to 2.11% at June 30, 2014 and 2.85% at September 30, 2013. Excluding acquired assets, the ratio of NPAs was 0.44% at September 30, 2014, compared to 0.45% at June 30, 2014 and 0.69% at September 30, 2013.
The Company recorded net loan charge-offs of $1.2 million during the third quarter of 2014, compared to net loan charge-offs of $157,000 in the second quarter of 2014 and $84,000 in the third quarter of 2013, respectively. The Company's provision for loan losses for the third quarter of 2014 was $892,000, compared to $811,000 for the second quarter of 2014 and $453,000 for the third quarter of 2013. The increase in net loan charge-offs for the third quarter of 2014 resulted primarily from deterioration in a single commercial and industrial loan relationship.
The ratio of allowance for loan losses to total loans was 0.82% at September 30, 2014, compared to 0.85% and 0.95% at June 30, 2014 and September 30, 2013, respectively. Excluding acquired loans, the ratio of the allowance for loan losses to total loans was 1.01% at September 30, 2014, compared to 1.10% and 1.09% at June 30, 2014 and September 30, 2013, respectively.
Investment Securities Portfolio
The Company's investment securities portfolio totaled $192.5 million at September 30, 2014, an increase of $2.3 million, or 1%, from June 30, 2014, and an increase of $32.0 million, or 20%, from September 30, 2013. The increase compared to September 30, 2013 resulted primarily from the addition of securities acquired from Britton & Koontz. At September 30, 2014, the Company had a net unrealized gain position on its investment securities portfolio of $1.4 million, compared to net unrealized gains of $1.8 million and $1.1 million at June 30, 2014 and September 30, 2013, respectively. The Company's investment securities portfolio had a modified duration of 3.8 years at September 30, 2014, compared to 4.2 and 4.7 years at December 31, 2013 and September 30, 2013, respectively.
Deposits
Total deposits were $983.4 million at September 30, 2014, an increase of $1.6 million, or 0.2%, from June 30, 2014, and an increase of $217.6 million, or 28%, from September 30, 2013. The acquisition of Britton & Koontz added $216.6 million in deposits. During the third quarter of 2014, core deposits (i.e., checking, savings and money market accounts) increased $15.1 million, or 2%, from June 30, 2014, and increased $202.6 million, or 36%, from September 30, 2013. Core deposits acquired from Britton & Koontz totaled $151.9 million at acquisition date.
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) |
2014 |
2013 |
Amount |
Percent |
||||
|
Demand deposit |
$ |
249,312 |
$ |
174,475 |
$ |
74,837 |
43 |
% |
|
Savings |
79,870 |
56,694 |
23,176 |
41 |
||||
|
Money market |
224,721 |
192,303 |
32,418 |
17 |
||||
|
NOW |
205,182 |
125,391 |
79,791 |
64 |
||||
|
Certificates of deposit |
224,302 |
192,449 |
31,853 |
17 |
||||
|
Total deposits |
$ |
983,387 |
$ |
741,312 |
$ |
242,075 |
33 |
% |
Net Interest Income
Net interest income for the third quarter of 2014 totaled $13.2 million, an increase of $111,000, or 1%, compared to the second quarter of 2014, and an increase of $2.8 million, or 27%, compared to the third quarter of 2013. The impact of the addition of Britton & Koontz's earning assets accounted for the majority of the increase from third quarter 2013 to third quarter 2014. The Company's net interest margin was 4.63% for the third quarter of 2014, one basis point lower than the second quarter of 2014 and 16 basis points lower than the third quarter of 2013. The decrease in the net interest margin in the third quarter 2014 compared to the third quarter 2013 was primarily the result of the impact of Britton & Koontz's interest-earning assets and interest-bearing liabilities. The Covered Loan portfolio yielded 16.22% during the third quarter of 2014, compared to 17.17% and 15.60% during the second quarter of 2014 and third 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%.
|
For the Three Months Ended | ||||||||||||
|
September 30, 2014 |
June 30, 2014 |
September 30, 2013 | ||||||||||
|
(dollars in thousands) |
Average Balance |
Average Yield/Rate |
Average Balance |
Average Yield/Rate |
Average Balance |
Average Yield/Rate | ||||||
|
Interest-earning assets: |
||||||||||||
|
Loans receivable |
$ |
904,216 |
5.70 |
% |
$ |
898,123 |
5.72 |
% |
$ |
676,639 |
6.07 |
% |
|
Investment securities (TE) |
187,201 |
2.20 |
191,732 |
2.22 |
157,352 |
2.10 |
||||||
|
Other interest-earning assets |
40,094 |
0.41 |
40,828 |
0.46 |
27,293 |
0.47 |
||||||
|
Total interest-earning assets |
1,131,511 |
4.93 |
1,130,683 |
4.94 |
861,284 |
5.17 |
||||||
|
Interest-bearing liabilities: |
||||||||||||
|
Deposits: |
||||||||||||
|
Savings, checking, and money market |
505,458 |
0.23 |
493,892 |
0.23 |
389,773 |
0.24 |
||||||
|
Certificates of deposit |
228,446 |
0.73 |
241,107 |
0.70 |
215,745 |
0.90 |
||||||
|
Total interest-bearing deposits |
733,904 |
0.39 |
734,999 |
0.38 |
605,518 |
0.48 |
||||||
|
Securities sold repurchase agreement |
20,643 |
0.36 |
20,819 |
0.36 |
- |
- |
||||||
|
FHLB advances |
92,324 |
0.51 |
96,169 |
0.48 |
41,083 |
0.90 |
||||||
|
Total interest-bearing liabilities |
$ |
846,871 |
0.40 |
$ |
851,987 |
0.39 |
$ |
646,601 |
0.51 |
|||
|
Net interest spread (TE) |
4.53 |
% |
4.55 |
% |
4.66 |
% | ||||||
|
Net interest margin (TE) |
4.63 |
% |
4.64 |
% |
4.79 |
% | ||||||
Noninterest Income
Noninterest income for the third quarter of 2014 totaled $2.2 million, a decrease of $92,000, or 4%, compared to the second quarter of 2014 and an increase of $380,000, or 21%, compared to the third quarter of 2013. The decrease in noninterest income in the third quarter of 2014 compared to the second quarter of 2014 resulted primarily from lower gains on the sale of mortgage loans (down $130,000), which was partially offset by increases in service fees and charges (up $31,000).
The increase in noninterest income in the third quarter of 2014 compared to the third quarter of 2013 resulted primarily from increases in service fees and charges (up $266,000) and bank card fees (up $130,000) due primarily to the Britton & Koontz acquisition and increased customer transactions.
Noninterest Expense
Noninterest expense for the third quarter of 2014 totaled $10.0 million, a decrease of $402,000, or 4%, compared to the second quarter of 2014 and an increase of $2.0 million, or 25%, compared to the third quarter of 2013. The decrease in noninterest expense in the third quarter of 2014 compared to the second quarter of 2014 resulted primarily from lower expenses on foreclosed assets (down $227,000), other expense (down $143,000 primarily from the absence of contract cancellation expense from the Britton & Koontz acquisition) and data processing and communications (down $96,000), which were partially offset by increases in compensation and benefits (up $73,000).
The increase in noninterest expense for the third quarter of 2014 compared to the third quarter of 2013 primarily relates to the growth of the Company's branch network due to the addition of Britton & Koontz branches and employees.
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. 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.
HOME BANCORP, INC. AND SUBSIDIARY CONDENSED STATEMENTS OF FINANCIAL CONDITION September 30, September 30, % June 30, December 31, 2014 2013 Change 2014 2013 Assets Cash and cash equivalents $ 54,620,690 $ 35,953,034 52 % $ 56,326,293 $ 32,638,900 Interest-bearing deposits in banks 5,771,000 3,185,000 81 5,771,000 2,940,000 Investment securities available for sale, at fair value 181,238,080 151,453,721 20 179,201,896 149,632,153 Investment securities held to maturity 11,211,745 8,965,112 25 10,983,829 9,404,790 Mortgage loans held for sale 7,397,081 1,711,585 332 5,700,222 1,951,345 Loans covered by loss sharing agreements 18,492,286 23,723,936 (22) 19,335,355 21,673,808 Noncovered loans, net of unearned income 888,872,055 657,150,445 35 888,277,680 685,782,309 Total loans 907,364,341 680,874,381 33 907,613,035 707,456,117 Allowance for loan losses (7,418,243) (6,462,841) 15 (7,757,944) (6,918,009) Total loans, net of allowance for loan losses 899,946,098 674,411,540 33 899,855,091 700,538,108 FDIC loss sharing receivable 6,449,226 13,576,606 (53) 8,142,745 12,698,077 Office properties and equipment, net 38,217,660 30,312,996 26 37,538,630 30,702,635 Cash surrender value of bank-owned life insurance 19,047,294 17,638,008 8 18,930,780 17,750,604 Accrued interest receivable and other assets 35,847,211 24,688,760 45 36,558,809 25,984,346 Total Assets $ 1,259,746,085 $ 961,896,362 31 $ 1,259,009,295 $ 984,240,958 Liabilities Deposits $ 983,386,883 $ 765,810,312 28 % $ 981,740,632 $ 741,312,416 Securities sold under repurchase agreement 20,540,654 - - 20,710,415 - Federal Home Loan Bank advances 95,000,875 50,900,000 87 102,531,304 97,000,000 Accrued interest payable and other liabilities 9,699,673 4,965,371 95 5,951,205 4,019,013 Total Liabilities 1,108,628,085 821,675,683 35 1,110,933,556 842,331,429 Shareholders' Equity Common stock 89,968 89,579 - % 89,771 89,585 Additional paid-in capital 93,025,616 91,743,191 1 92,667,831 92,192,410 Treasury stock (28,502,198) (28,003,896) 2 (28,448,439) (28,011,398) Common stock acquired by benefit plans (5,223,134) (6,376,957) (18) (5,333,648) (6,285,327) Retained earnings 90,791,742 82,023,494 11 87,915,224 83,729,144 Accumulated other comprehensive income 936,006 745,268 26 1,185,000 195,115 Total Shareholders' Equity 151,118,000 140,220,679 8 148,075,739 141,909,529 Total Liabilities and Shareholders' Equity $ 1,259,746,085 $ 961,896,362 31 $ 1,259,009,295 $ 984,240,958
HOME BANCORP, INC. AND SUBSIDIARY CONDENSED STATEMENTS OF INCOME For The Three Months Ended For The Nine Months Ended September 30, % September 30, % 2014 2013 Change 2014 2013 Change Interest Income Loans, including fees $ 13,090,209 $ 10,438,505 25 % $ 37,497,393 $ 30,578,885 23 % Investment securities 936,379 754,902 24 2,957,544 2,278,112 30 Other investments and deposits 41,723 32,471 29 119,403 96,077 24 Total interest income 14,068,311 11,225,878 25 40,574,340 32,953,074 23 Interest Expense Deposits 718,367 729,941 (2) % 2,044,983 2,410,621 (15) % Securities sold under repurchase agreements 18,838 - - 54,147 - - Federal Home Loan Bank advances 118,522 92,610 28 350,003 358,806 (3) Total interest expense 855,727 822,551 4 2,449,133 2,769,427 (12) Net interest income 13,212,584 10,403,327 27 38,125,207 30,183,647 26 Provision for loan losses 891,989 453,133 97 1,847,958 3,221,326 (43) Net interest income after provision for loan losses 12,320,595 9,950,194 24 36,277,249 26,962,321 35 Noninterest Income Service fees and charges 1,008,416 741,983 36 % 2,781,487 1,984,049 40 % Bank card fees 576,105 445,784 29 1,601,221 1,314,299 22 Gain on sale of loans, net 308,708 314,626 (2) 909,173 1,289,487 (30) Income from bank-owned life insurance 116,513 114,473 2 342,347 351,575 (3) Gain on the sale of securities, net - - - 1,826 428,200 (100) Discount accretion of FDIC loss sharing receivable 54,873 111,066 (51) 205,749 334,913 (39) Other income 96,000 52,215 84 226,938 170,351 33 Total noninterest income 2,160,615 1,780,147 21 6,068,741 5,872,874 3 Noninterest Expense Compensation and benefits 5,785,428 5,017,628 15 % 18,292,578 14,993,975 22 % Occupancy 1,213,874 914,187 33 3,419,434 2,642,463 29 Marketing and advertising 244,364 152,270 61 695,823 563,793 23 Data processing and communication 964,541 574,364 68 3,396,596 1,842,036 84 Professional fees 210,459 217,657 (3) 925,961 623,909 48 Forms, printing and supplies 135,840 86,965 56 499,060 329,762 51 Franchise and shares tax 184,385 272,960 (32) 553,156 819,540 (33) Regulatory fees 306,724 225,175 36 790,763 668,059 18 Foreclosed assets, net 91,836 90,982 1 772,972 236,740 227 Other expenses 830,629 451,767 84 2,248,952 1,710,201 32 Total noninterest expense 9,968,080 8,003,955 25 31,595,295 24,430,478 29 Income before income tax expense 4,513,130 3,726,386 21 10,750,695 8,404,717 28 Income tax expense 1,636,613 1,243,639 32 3,688,098 2,816,445 31 Net income $ 2,876,517 $ 2,482,747 16 $ 7,062,597 $ 5,588,272 26 Earnings per share - basic $ 0.44 $ 0.38 16 % $ 1.08 $ 0.84 29 % Earnings per share - diluted $ 0.41 $ 0.37 11 $ 1.02 $ 0.80 28
HOME BANCORP, INC. AND SUBSIDIARY SUMMARY FINANCIAL INFORMATION For The Three Months Ended For The Three September 30, % Months Ended % 2014 2013 Change June 30, 2014 Change (dollars in thousands except per share data) EARNINGS DATA Total interest income $ 14,068 $ 11,226 25 % $ 13,940 1 % Total interest expense 856 823 4 839 2 Net interest income 13,212 10,403 27 13,101 1 Provision for loan losses 892 453 97 811 10 Total noninterest income 2,161 1,780 21 2,252 (4) Total noninterest expense 9,968 8,004 25 10,370 (4) Income tax expense 1,636 1,243 32 1,420 15 Net income $ 2,877 $ 2,483 16 $ 2,752 5 AVERAGE BALANCE SHEET DATA Total assets $ 1,242,370 $958,560 30 % $ 1,246,300 (0) % Total interest-earning assets 1,131,511 861,284 31 1,130,683 0 Totals loans 904,216 676,639 34 898,123 1 Total interest-bearing deposits 733,904 605,518 21 734,999 (0) Total interest-bearing liabilities 846,871 646,601 31 851,987 (1) Total deposits 979,711 776,556 26 982,371 (0) Total shareholders' equity 150,087 139,060 8 146,807 2 SELECTED RATIOS (1) Return on average assets 0.93 % 1.04 % (11) % 0.88 % 6 % Return on average equity 7.67 7.14 7 7.50 2 Efficiency ratio (2) 64.84 65.70 (1) 67.54 (4) Average equity to average assets 12.08 14.51 (17) 11.78 3 Tier 1 leverage capital ratio(3) 11.34 14.29 (21) 11.11 2 Total risk-based capital ratio(3) 17.53 22.33 (22) 17.20 2 Net interest margin (4) 4.63 4.79 (3) 4.64 (0) PER SHARE DATA Basic earnings per share $ 0.44 $ 0.38 16 % $ 0.42 5 % Diluted earnings per share 0.41 0.37 11 0.40 3 Book value at period end 21.23 19.75 8 20.86 2 Tangible book value at period end 20.57 19.47 6 20.20 2 PER SHARE DATA Shares outstanding at period end 7,114,516 7,099,164 0 % 7,097,270 0 % Weighted average shares outstanding Basic 6,577,378 6,481,911 2 % 6,532,620 1 % Diluted 6,950,916 6,768,578 3 6,903,323 1 (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, 2014 June 30, 2014 September 30, 2013 Covered Noncovered Total Covered Noncovered Total Covered Noncovered Total (dollars in thousands) CREDIT QUALITY(1) (2) Nonaccrual loans $ 3,432 $ 11,785 $ 15,217 $ 4,376 $ 15,222 $ 19,598 $ 5,807 $ 15,784 $ 21,591 Accruing loans past due 90 days and over - - - - - - - - - Total nonperforming loans 3,432 11,785 15,217 4,376 15,222 19,598 5,807 15,784 21,591 Foreclosed assets 2,195 5,151 7,346 2,677 4,255 6,932 3,064 2,786 5,850 Total nonperforming assets 5,627 16,936 22,563 7,053 19,477 26,530 8,871 18,570 27,441 Performing troubled debt restructurings 3 732 735 3 212 215 6 437 443 Total nonperforming assets and troubled debt restructurings $ 5,630 $ 17,668 $ 23,298 $ 7,056 $ 19,689 $ 26,745 $ 8,877 $ 19,007 $ 27,884 Nonperforming assets to total assets 1.79 % 2.11 % 2.85 % Nonperforming loans to total assets 1.21 1.56 2.24 Nonperforming loans to total loans 1.68 2.16 3.17 Allowance for loan losses to nonperforming assets 32.88 29.24 23.55 Allowance for loan losses to nonperforming loans 48.75 39.58 29.93 Allowance for loan losses to total loans 0.82 0.85 0.95 Year-to-date loan charge-offs $ 1,434 $ 197 $ 2,135 Year-to-date loan recoveries 86 81 58 Year-to-date net loan charge-offs (recoveries) $ 1,348 $ 116 $ 2,077 Annualized YTD net loan charge-offs to total loans 0.20 % 0.03 % 0.41 % (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".
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SOURCE Home Bancorp, Inc.
