Investor Relations

LAFAYETTE, La., April 26, 2016 /PRNewswire/ -- Home Bancorp, Inc. (Nasdaq:  "HBCP") (the "Company"), the parent company for Home Bank, N.A. (the "Bank") (www.home24bank.com), reported net income of $3.3 million for the first quarter of 2016, a decrease of $613,000, or 15%, compared to the fourth quarter of 2015 and an increase of $502,000, or 18%, compared to the first quarter of 2015.  The first quarter of 2016 and fourth quarter of 2015 include merger-related expenses, net of taxes, totaling $398,000 and $407,000, respectively, related to the acquisition of Louisiana Bancorp, Inc. ("Louisiana Bancorp").  Excluding merger-related expenses, net income for the first quarter of 2016 totaled $3.7 million, a decrease of 14% compared to the fourth quarter of 2015 and an increase of 32% compared to the first quarter of 2015. 

Diluted earnings per share were $0.47 for the first quarter of 2016, a decrease of $0.09, or 16%, from the fourth quarter of 2015 and an increase of $0.06, or 15%, compared to the first quarter of 2015.  Excluding merger-related expenses, diluted earnings per share for the first quarter of 2016 were $0.53, a decrease of 15% from the fourth quarter of 2015 and an increase of 29% compared to the first quarter of 2015. 

"Organic loan growth was healthy during the quarter at 10% on an annualized basis," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "Expected paydowns on acquired loans offset organic growth, resulting in a 1% overall decrease in loans."

"We continue to work very closely with our customers in the energy sector to help them manage through the current cycle," stated Bordelon.  "Many of those customers have weathered such cycles in the past.  Although their resilience is not surprising given their liquidity and lower leverage positions going into the downturn, it is nonetheless admirable."

The Company announced that its Board of Directors increased its cash dividend $0.01 to $0.10 per share payable on May 20, 2016, to shareholders of record as of May 9, 2016. The Company also announced the commencement of a new share repurchase program ("April 2016 Program").  Under the April 2016 Program, the Company may purchase up to 365,000 shares, or approximately 5%, of the Company's outstanding common stock.

Loans and Credit Quality

Loans totaled $1.2 billion at March 31, 2016, a decrease of $6.3 million, or 1%, from December 31, 2015, and an increase of $296.0 million, or 32%, from March 31, 2015. Growth in organic loans of 10% (on an annualized basis) was offset by declines in acquired loans.  Loan decreases during the first quarter of 2016 related primarily to multi-family residential (down $6.4 million), residential mortgages (down $3.0 million) and consumer loans (down $1.5 million).  Commercial real estate and home equity loans increased by $2.8 million and $2.0 million, respectively, during the quarter.   

The vast majority of the increase in loans outstanding at March 31, 2016 compared to March 31, 2015 resulted from the acquisition of Louisiana Bancorp, Inc. (the former holding company of Bank of New Orleans) in September 2015.  The Company acquired $281.6 million of loans from Louisiana Bancorp.   

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

Nonperforming assets ("NPAs") totaled $13.7 million at March 31, 2016, a decrease of $2.2 million, or 14%, compared to December 31, 2015 and a decrease of $8.6 million, or 39%, compared to March 31, 2015.  Of the $13.7 million in total NPAs at March 31, 2016, an aggregate of $7.9 million related to our acquisitions of Statewide Bank, GS Financial Corp, Britton & Koontz Capital Corporation and Louisiana Bancorp.   The ratio of total NPAs to total assets was 0.89% at March 31, 2016, compared to 1.03% at December 31, 2015 and 1.81% at March 31, 2015.  Excluding acquired assets, the ratio of total NPAs to total assets was 0.51% at March 31, 2016, compared to 0.51% at December 31, 2015 and 0.44% at March 31, 2015. 

The Company recorded virtually no net loan charge-offs during the first quarter of 2016, compared to net loan charge-offs of $54,000 and $26,000 in the fourth and first quarters of 2015, respectively. 

The Company's provision for loan losses for the first quarter of 2016 was $850,000, compared to $670,000 for the fourth quarter of 2015 and $538,000 for the first quarter of 2015.  Of the $850,000 in provision for the first quarter of 2016, $461,000 was associated with one energy-related borrower.

The ratio of the allowance for loan losses to total loans was 0.85% at March 31, 2016, compared to 0.78% and 0.90% at December 31, 2015 and March 31, 2015, respectively.  Excluding acquired loans, the ratio of the allowance for loan losses to total loans was 1.20% at March 31, 2016, compared to 1.15% and 1.07% at December 31, 2015 and March 31, 2015, respectively.   

Energy Exposure

The balance of loans to companies in the energy sector totaled $36.8 million, or 3.0% of outstanding loans, at March 31, 2016.  We also had unfunded loan commitments to energy companies amounting to $8.9 million at such date.    At March 31, 2016, 92% of the balance of our energy-related loans were performing in accordance with their original loan agreements.  Of the remaining 8%, $2.1 million has been restructured and are paying in accordance with the restructured terms.  The Company holds no shared national credits.

The following table illustrates the composition of the Company's energy-related loans at March 31, 2016. 

The allowance for loan losses to loans ratio directly attributable to energy loans totaled 3.08% at March 31, 2016.  Over the past 15 months, the Company has increased its overall allowance for loan losses to loans ratio on originated loans from 1.04% at December 31, 2014 to 1.20% at March 31, 2016 due primarily to the potential direct and indirect impact of low energy prices.

Investment Securities Portfolio

The Company's investment securities portfolio totaled $192.4 million at March 31, 2016, an increase of $1.7 million, or 1%, from December 31, 2015, and an increase of $7.0 million, or 4%, from March 31, 2015.  At March 31, 2016, the Company had a net unrealized gain position on its investment securities portfolio of $2.7 million, compared to net unrealized gains of $1.3 million and $2.6 million at December 31, 2015 and March 31, 2015, respectively.  The Company's investment securities portfolio had a modified duration of 3.1 years at March 31, 2016, compared to 3.3 and 3.4 years at December 31, 2015 and March 31, 2015, respectively.  

Deposits

Total deposits were $1.2 billion at March 31, 2016, a decrease of $518,000 from December 31, 2015, and an increase of $217.1 million, or 21%, from March 31, 2015.  During the first quarter of 2016, core deposits (i.e., checking, savings and money market accounts) increased $4.9 million, or 1%, from December 31, 2015, and increased $161.7 million, or 20%, from March 31, 2015.  The Company acquired $208.7 million of deposits, including $118.1 million in core deposits, from Louisiana Bancorp at the acquisition date in September 2015.

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

Net Interest Income

Net interest income for the first quarter of 2016 totaled $15.7 million, which was virtually unchanged compared to the fourth quarter of 2015, and an increase of $3.2 million, or 26%, compared to the first quarter of 2015.  The addition of Louisiana Bancorp's earning assets accounted for the vast majority of the increase during the first quarter of 2016 compared to the first quarter of 2015. The Company's net interest margin was 4.40% for the first quarter of 2016, four basis points higher than the fourth quarter of 2015 and 11 basis points lower than the first quarter of 2015.  The slight increase in the net interest margin in the first quarter of 2016 was due primarily to changes in the mix of interest-earning assets.  The decrease in the net interest margin in the first quarter of 2016 compared to the first quarter of 2015 was primarily the impact of Louisiana Bancorp's interest-earning assets and interest-bearing liabilities.          

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 first quarter of 2016 totaled $2.6 million, an increase of $112,000, or 5%, compared to the fourth quarter of 2015 and an increase of $489,000, or 24%, compared to the first quarter of 2015.  The increase in noninterest income in the first quarter of 2016 compared to the fourth quarter of 2015 resulted primarily from an increase in other income (up $243,000 primarily from recoveries on acquired loans previously charged-off), which was partially offset by a decrease in gains on the sale of mortgage loans (down $108,000).

The increase in noninterest income in the first quarter of 2016 compared to the first quarter of 2015 resulted primarily from increases in other income (up $393,000 primarily from recoveries on acquired loans previously charged-off) and service fees and charges (up $144,000 due primarily to the Louisiana Bancorp acquisition and increased customer transactions), which were partially offset by a decrease in gains on the sale of mortgage loans (down $72,000).

Noninterest Expense

Noninterest expense for the first quarter of 2016 totaled $12.3 million, an increase of $788,000, or 7%, compared to the fourth quarter of 2015 and an increase of $2.6 million, or 27%, compared to the first quarter of 2015.  Noninterest expense for the first quarter of 2016 and fourth quarter of 2015 includes $613,000 and $563,000, respectively, of merger-related expenses related to the acquisition of Louisiana Bancorp.  Excluding merger-related expenses, noninterest expense for the first quarter of 2016 totaled $11.7 million, an increase of $738,000, or 7%, compared to the fourth quarter of 2015 and an increase of $2.0 million, or 21%, compared to the first quarter of 2015.

Excluding merger-related expenses, the increase in noninterest expense in the first quarter of 2016 compared to the fourth quarter of 2015 resulted primarily from higher compensation and benefits expense (up $498,000) and expenses on foreclosed assets (up $153,000).

Excluding merger-related expenses, the increase in noninterest expense in the first quarter of 2016 compared to the first quarter of 2015 relates primarily to the growth of the Company due to the addition of Louisiana Bancorp 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, intangible assets and the impact of merger-related expenses.  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 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, 2015, 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.