(337) 237-1960
LAFAYETTE, La., Jan. 29 /PRNewswire-FirstCall/ -- Home Bancorp, Inc. (the "Company"), the holding company for Home Bank (www.home24bank.com), a Federally chartered savings bank headquartered in Lafayette, Louisiana (the "Bank"), announced a net loss of $799,000 for the fourth quarter of 2008, a decrease of $1.2 million, or 295%, compared to the fourth quarter of 2007. The fourth quarter of 2008 was negatively impacted by a non-cash charge of $2.8 million for the other-than-temporary impairment ("OTTI") of investment securities and a charge of $867,000 related to a shortfall in cash invested at other ATM locations. Excluding the impact of the OTTI and ATM charges, net income for the fourth quarter was $1.6 million, an increase of $1.2 million, or 302%, compared to the fourth quarter of 2007. Net income for 2008 was $2.7 million, a decrease of $607,000, or 18%, compared to 2007. Excluding the impact of the OTTI and ATM charges, net income for 2008 was $5.2 million, an increase of $1.8 million, or 55%, compared to 2007. The Company did not apply for or accept any funds from the U.S. Treasury's bank capital purchase program.
John W. Bordelon, President and Chief Executive Officer of the Company and the Bank, stated, "Despite the reported net loss for the quarter, the Company's core performance during 2008 was exceptional as we continued to gain quality loan and core deposit relationships. We are very excited about the opening of two Home Bank branches in Baton Rouge during the fourth quarter. We are confident our approach to retail and small business banking will help us to quickly gain traction in this market."
"While many banks are contracting, Home Bank is gaining new clients daily as customers realize the importance of banking locally", added Mr. Bordelon. "Our bankers are focused on ensuring Home Bank's momentum continues to build during this challenging time for many in our industry."
Mutual to Stock Conversion
The Company completed its initial public stock offering ("IPO") on October 2, 2008, and began trading on the Nasdaq Global Market on October 3, 2008. The Company issued 8,926,875 shares of its common stock for an aggregate of $89,268,750 in total offering proceeds.
Baton Rouge Expansion
Home Bank opened two full-service branches in Baton Rouge during the fourth quarter of 2008. The Bank also operates a loan production office in Baton Rouge. The Bank has also purchased land on Corporate Boulevard in Baton Rouge and intends to open a full-service branch at this location during the fourth quarter of 2009.
Loans and Credit Quality
Loans totaled $335.6 million at December 31, 2008, an increase of $27.0 million, or 9%, from December 31, 2007, and an increase of $18.0 million, or 6%, from September 30, 2008. The majority of the Bank's 2008 loan growth relates to commercial real estate loans. In contrast to several areas in the country, south central Louisiana real estate values have performed well due to the strong level of economic activity in our markets.
The Company recorded a $298,000 provision for loan losses during the fourth quarter of 2008, compared to $277,000 during the fourth quarter of 2007 and $93,000 in the third quarter of 2008. The increased provision was primarily the result of loan growth. Net loan charge-offs for 2008 were $167,000, or 0.05%, of average loans outstanding, compared to $114,000, or 0.04%, of average loans in 2007. Non-performing assets totaled $1.5 million, or 0.28%, of total assets at December 31, 2008, compared to $1.3 million and $638,000 at December 31, 2007 and September 30, 2008, respectively.
As of December 31, 2008, the allowance for loan losses as a percentage of total loans was 0.78%, compared to 0.75% at December 31, 2007 and September 30, 2008.
Investment Securities Portfolio
The Company's investment securities portfolio totaled $118.3 million at December 31, 2008, an increase of $56.6 million, or 92%, from December 31, 2007, and an increase of $38.2 million, or 48%, from September 30, 2008. The increases relate primarily to the investment of IPO proceeds. At December 31, 2008, the Company had an unrealized loss position on its investment securities portfolio of $8.0 million, compared to an unrealized gain of $66,000 at December 31, 2007. The unrealized loss relates to the Company's non-agency mortgage-backed securities holdings, which amounted to $51.1 million, or 10% of total assets, at December 31, 2008. The increase in the unrealized loss position of these securities reflects, among other factors, the impact the illiquid market and distressed sales have had on the market value of non-agency mortgage-backed securities.
Due to the deteriorating credit performance of the mortgage loans underlying three of the Company's non-agency mortgage-backed securities, the Company recorded an OTTI charge of $2.8 million during the fourth quarter of 2008. If the performance of these impaired securities is better than current estimates, which reflect significant illiquidity discounts, the Company may have the opportunity to earn back a substantial portion of the write-downs over the remaining lives of the securities. To date, the Company has received all principal and interest payments due on these three securities in accordance with their terms. Based on management's review of the remaining investment portfolio, no other declines in the market value of the Company's investment securities are deemed to be other than temporary at December 31, 2008.
The following table summarizes the Company's non-agency mortgage-backed securities portfolio as of December 31, 2008.
# of Gross Carrying Unrealized S&P
Collateral Securities Value Gain/(Loss) Rating
Prime 17 $40,916,000 $(7,488,000) AAA
Prime 1 1,183,000 (530,000) AA
Prime 1 2,401,000 (359,000) A
Prime 1 2,397,000 (18,000) Not rated (1)
Prime 1 616,000 -(2) B
Alt-A 1 1,657,000 42,000 AAA
Alt-A 1 886,000 -(3) B
Alt-A 1 1,052,000 -(4) Not rated (4)
Total non-agency
mortgage-backed
securities 24 $51,108,000 $(8,353,000)
(1) Rated "Aaa" by Moody's.
(2) The Company recorded an OTTI charge of $706,000 on this security
during the fourth quarter of 2008.
(3) The Company recorded an OTTI charge of $762,000 on this security
during the fourth quarter of 2008.
(4) The Company recorded an OTTI charge of $1.4 million on this
security during the fourth quarter of 2008. This security is
rated "A3" by Moody's and "CCC" by Fitch.
The Company holds no Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) preferred stock, equity securities, corporate bonds, trust preferred securities, hedge fund investments, collateralized debt obligations or structured investment vehicles.
Cash Invested at Other ATM Locations
Over the past several years, Home Bank has entered into contracts with various counterparties to provide cash for ATMs at approximately 1,200 locations throughout the United States. In September 2008, one of the ATM counterparties informed the Bank that it was discontinuing operations. To date, the cash returned to the Bank by the counterparty is $867,000 less than the balance due to the Bank. Given the uncertainty of collecting the balance due, the Company assumed no recovery and recorded a charge of $867,000 during the fourth quarter of 2008.
The Company is currently pursuing collection options, including recovery under the counterparty's insurance policy for which Home Bank is a named insured. The Company has also put its insurance company on notice that the Company will file a claim under its fidelity bond.
Deposits
Deposits totaled $354.1 million at December 31, 2008, an increase of $609,000 from December 31, 2007, and an increase of $669,000 from September 30, 2008. While total deposits did not increase substantially during the year, core deposits (i.e., checking, savings and money market accounts) increased $20.7 million, or 12%, during 2008. The Company's continued focus is on growing its core deposit base.
Accrued interest payable and other liabilities totaled $2.9 million at December 31, 2008, a decrease of $79.7 million from September 30, 2008. The high balance at September 30 resulted from cash receipts for subscriptions to purchase shares of the Company's common stock in its IPO. The net proceeds of the IPO are reflected in the Company's shareholders' equity at December 31, 2008.
Net Interest Income
Net interest income for the fourth quarter of 2008 totaled $5.6 million, an increase of $1.6 million, or 39%, compared to the fourth quarter of 2007. Net interest income for 2008 totaled $18.7 million, an increase of $3.2 million, or 20%, compared to 2007. The Company's net interest margin was 4.52% for the fourth quarter of 2008, 42 basis points higher than the same quarter a year ago and 23 basis points higher than the third quarter of 2008. The Federal Reserve rate cuts and corresponding cuts in other market rates during the fourth quarter of 2008 impacted the yield earned on average assets and rate paid on interest-bearing liabilities.
Average interest-earning assets totaled $494.9 million for the quarter ended December 31, 2008, which represents increases of 26% and 12% compared to the quarters ended December 31, 2007 and September 30, 2008, respectively. The average yield on interest-earning assets for the quarter ended December 31, 2008 was 5.92%, which represents decreases of 76 and 32 basis points compared to the quarters ended December 31, 2007 and September 30, 2008, respectively.
Average interest-bearing liabilities totaled $308.0 million for the quarter ended December 31, 2008, an increase of 2% and a decrease of 8% compared to the quarters ended December 31, 2007 and September 30, 2008, respectively. The average rate paid on interest-bearing liabilities for the quarter ended December 31, 2008 was 2.25%, which represents decreases of 110 and 32 basis points compared to the quarters ended December 31, 2007 and September 30, 2008, respectively.
Noninterest Income
Reported noninterest income (loss) under generally accepted accounting principles ("GAAP") for the fourth quarter of 2008 was $(2.0) million, a decrease of $2.7 million, or 376%, compared to the same quarter a year ago. Excluding the impact of OTTI charges of $2.8 million, noninterest income for the fourth quarter of 2008 was $879,000, an increase of $172,000, or 24%, compared to the same quarter a year ago. Reported GAAP noninterest income for 2008 totaled $586,000, a decrease of $2.1 million, or 78%, compared to 2007. Excluding the impact of OTTI charges, noninterest income for 2008 totaled $3.4 million, an increase of $739,000, or 28%, compared to 2007. The primary reasons for the non-GAAP increases in noninterest income compared to the same periods last year were higher levels of service fees and charges and income from bank-owned life insurance policies purchased during the fourth quarter of 2007.
Noninterest Expense
Reported GAAP noninterest expense for the fourth quarter of 2008 was $4.8 million, an increase of $618,000, or 15%, compared to the same quarter a year ago. Excluding the impact of ATM charges of $867,000, noninterest expense for the fourth quarter of 2008 was $3.9 million, a decrease of $249,000, or 6%, compared to the same quarter a year ago. Reported GAAP noninterest expense for 2008 totaled $14.9 million, an increase of $1.9 million, or 14%, compared to 2007. Excluding the impact of ATM charges, noninterest expense for 2008 totaled $14.1 million, an increase of $989,000, or 8%, compared to 2007. Compensation and benefits expense in the fourth quarter of 2007 included $422,000 related to salary continuation plans. The primary reasons for the non-GAAP increase in noninterest expense compared to 2007 were compensation and benefits expense and occupancy expense increases related to the Company's expansion into Baton Rouge.
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 the impact of charges for the other-than-temporary impairment of investment securities and a shortage in cash invested at other ATM locations. Management believes the presentation of this non-GAAP financial information provides useful information that is essential to a proper understanding of the Company's core operating results. This non-GAAP financial information should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial information presented by other companies.
This news release contains certain forwardlooking statements. Forwardlooking 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."
Forwardlooking 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 forwardlooking statements. Home Bancorp's prospectus, dated August 12, 2008, 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. Forwardlooking statements speak only as of the date they are made. We do not undertake to update forwardlooking statements to reflect circumstances or events that occur after the date the forwardlooking 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,
2008 2007 Change 2008
---- ---- ------ ----
Assets
Cash and cash
equivalents $20,150,248 $11,746,082 72% $60,389,012
Interest-
bearing
deposits in
banks 1,685,000 3,267,000 (48) 792,000
Cash invested at
other ATM
locations 24,243,780 17,142,751 41 20,697,177
Securities
available for
sale, at fair
value 114,235,261 56,995,287 100 76,301,887
Securities
held to
maturity 4,089,466 4,693,288 (13) 3,870,154
Mortgage loans
held for sale 996,600 1,174,650 (15) 281,200
Loans, net of
unearned income 335,568,071 308,582,151 9 317,564,165
Allowance for
loan losses (2,605,889) (2,314,132) 13 (2,390,573)
---------- ---------- -- ----------
Loans, net 332,962,182 306,268,019 9 315,173,592
Office properties
and equipment,
net 15,325,997 11,687,580 31 13,489,704
Cash surrender
value of bank-
owned life
insurance 5,268,817 5,006,615 5 5,201,472
Accrued interest
receivable and
other assets 9,439,637 4,369,573 116 6,848,881
--------- --------- --- ---------
Total Assets $528,396,988 $422,350,845 25% $503,045,079
============ ============ == ============
Liabilities
Deposits $354,145,105 $353,536,399 -% $353,476,182
Federal Home Loan
Bank advances 44,420,795 16,883,436 163 15,843,422
Accrued
interest
payable and
other
liabilities 2,868,362 2,547,890 13 82,537,048
--------- --------- -- ----------
Total Liabilities 401,434,262 372,967,725 8 451,856,652
----------- ----------- - -----------
Total
Shareholders'
Equity 126,962,726 49,383,120 157 51,188,427
----------- ---------- --- ----------
Total Liabilities
and
Shareholders'
Equity $528,396,988 $422,350,845 25% $503,045,079
============ ============ == ============
HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
For The Three Months Ended
December 31,
------------ %
2008 2007 Change
---- ---- ------
Interest Income
Loans, including fees $5,534,213 $5,464,873 1%
Investment securities 1,478,963 663,962 123
Other investments and deposits 317,715 438,371 (28)
------- ------- ---
Total interest income 7,330,891 6,567,206 12
--------- --------- --
Interest Expense
Deposits 1,575,505 2,461,106 (36)
Federal Home Loan Bank advances 160,495 76,828 109
------- ------ ---
Total interest expense 1,736,000 2,537,934 (32)
--------- --------- ---
Net interest income 5,594,891 4,029,272 39
Provision for loan losses 297,775 277,486 7
------- ------- -
Net interest income after provision
for loan losses 5,297,116 3,751,786 41
--------- --------- --
Noninterest Income
Service fees and charges 612,087 488,039 25
Gain on sale of loans, net 61,903 93,423 (34)
Net loss on sale of real
estate owned (12,147) (4,140) 193
Other-than-temporary impairment
of securities (2,832,920) - -
Other income 217,311 129,821 67
------- ------- --
Total noninterest income (1,953,766) 707,143 (376)
---------- ------- ----
Noninterest Expense
Compensation and benefits 2,359,437 2,449,254 (4)
Occupancy 221,254 178,946 24
Marketing and advertising 135,112 180,899 (25)
Data processing and communication 207,707 230,533 (10)
Depreciation 207,554 261,075 (21)
Loss on ATM cash 867,389 - -
Other expenses 783,083 862,914 (9)
------- ------- --
Total noninterest expense 4,781,536 4,163,621 15
--------- --------- --
Income (loss) before income tax
expense (benefit) (1,438,186) 295,308 (587)
Income tax expense (benefit) (639,089) (113,658) 462
-------- -------- ---
Net Income (Loss) $(799,097) $408,966 (295)%
========= ======== ====
For The Year Ended
December 31,
------------ %
2008 2007 Change
---- ---- ------
Interest Income
Loans, including fees $21,790,163 $20,809,447 5%
Investment securities 4,283,960 2,667,979 61
Other investments and deposits 1,354,627 1,947,548 (30)
--------- --------- ---
Total interest income 27,428,750 25,424,974 8
---------- ---------- -
Interest Expense
Deposits 7,903,313 9,626,217 (18)
Federal Home Loan Bank advances 843,937 282,099 199
------- ------- ---
Total interest expense 8,747,250 9,908,316 (12)
--------- --------- ---
Net interest income 18,681,500 15,516,658 20
Provision for loan losses 459,212 419,872 9
------- ------- -
Net interest income after provision
for loan losses 18,222,288 15,096,786 21
---------- ---------- --
Noninterest Income
Service fees and charges 2,326,143 1,881,153 24
Gain on sale of loans, net 254,456 311,744 (18)
Net loss on sale of real
estate owned (15,635) (4,140) 278
Other-than-temporary impairment
of securities (2,832,920) - -
Other income 853,865 491,214 74
------- ------- --
Total noninterest income 585,909 2,679,971 (78)
------- --------- ---
Noninterest Expense
Compensation and benefits 8,787,310 7,994,357 10
Occupancy 791,043 693,250 14
Marketing and advertising 475,380 515,228 (8)
Data processing and communication 872,316 855,236 2
Depreciation 813,916 867,603 (6)
Loss on ATM cash 867,389 - -
Other expenses 2,315,399 2,141,019 8
--------- --------- -
Total noninterest expense 14,922,753 13,066,693 14
---------- ---------- --
Income (loss) before income tax
expense (benefit) 3,885,444 4,710,064 (18)
Income tax expense (benefit) 1,169,852 1,387,359 (16)
--------- --------- ---
Net Income (Loss) $2,715,592 $3,322,705 (18)%
========== ========== ===
HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
For The Three For The Three
Months Ended Months Ended
December 31, September 30,
------------ % ------------- %
2008 2007 Change 2008 Change
---- ---- ------ ---- ------
EARNINGS DATA
Interest Income
Loans,
including fees $5,534,213 $5,464,873 1% $5,455,504 1%
Investment
securities 1,478,963 663,962 123 1,054,335 40
Other
investments
and deposits 317,715 438,371 (28) 387,095 (18)
------- ------- --- ------- ---
Total interest
income 7,330,891 6,567,206 12 6,896,934 6
--------- --------- -- --------- -
Interest
Expense
Deposits 1,575,505 2,461,106 (36)% 1,875,504 (16)%
Federal Home
Loan Bank
advances 160,495 76,828 109 280,141 (43)
------- ------ --- ------- ---
Total interest
expense 1,736,000 2,537,934 (32) 2,155,645 (19)
--------- --------- --- --------- ---
Net interest
income 5,594,891 4,029,272 39 4,741,289 18
Provision for
loan losses 297,775 277,486 7 92,500 222
------- ------- - ------ ---
Net interest
income after
provision
for loan
losses 5,297,116 3,751,786 41 4,648,789 14
--------- --------- -- --------- --
Noninterest
Income
Service
fees and
charges 612,087 488,039 25% 592,717 3%
Gain on
sale of
loans, net 61,903 93,423 (34) 41,555 49
Net loss on
sale of
real
estate
owned (12,147) (4,140) 193 - -
Other-than-
temporary
impairment of
securities (2,832,920) - - - -
Other income 217,311 129,821 67 224,248 (3)
------- ------- -- ------- --
Total
noninterest
income (1,953,766) 707,143 (376) 858,520 (328)
---------- ------- ---- ------- ----
Noninterest
Expense
Compensation
and benefits 2,359,437 2,449,254 (4)% 2,191,874 8%
Occupancy 221,254 178,946 24 194,205 14
Marketing and
advertising 135,112 180,899 (25) 82,241 64
Data processing
and
communication 207,707 230,533 (10) 197,078 5
Depreciation 207,554 261,075 (21) 203,282 2
Loss on ATM
cash 867,389 - - - -
Other expenses 783,083 862,914 (9) 530,930 47
------- ------- -- ------- --
Total
noninterest
expense 4,781,536 4,163,621 15 3,399,610 41
--------- --------- -- --------- --
Income (Loss)
before income
tax expense
(benefit) (1,438,186) 295,308 (587) 2,107,699 (168)
Income tax
expense
(benefit) (639,089) (113,658) 462 715,524 (189)
-------- -------- --- ------- ----
Net Income
(Loss) $(799,097) $408,966 (295)% $1,392,175 (157)%
========= ======== ==== ========== ====
For The Three For The Three
Months Ended Months Ended
December 31, September 30,
------------ % %
2008 2007 Change 2008 Change
---- ---- ------ ---- ------
AVERAGE BALANCE
SHEET DATA (dollars
in thousands)
Total assets $503,947 $405,972 24% $464,560 8%
Total earning
assets 494,944 393,134 26 442,051 12
Loans 325,520 300,882 8 315,431 3
Interest bearing
deposits 284,154 295,861 (4) 296,485 (4)
Total deposits 367,935 349,296 5 359,210 2
Total shareholders'
equity 106,814 46,576 129 50,052 113
SELECTED RATIOS
Return on average
assets (0.63)% 0.40% (257)% 1.20 (153)%
Return on average
total equity (2.99) 3.51 (185) 11.12 (127)
Efficiency ratio 131.32 87.91 49 60.71 116
Average equity to
average assets 21.20 11.47 85 10.77 97
Core capital ratio 24.65 11.86 108 10.57 133
Net interest margin 4.52 4.10 10 4.29 5
December 31, December 31, % September 30,
2008 2007 Change 2008
---- ---- ------ ----
CREDIT QUALITY
(dollars in
thousands)
Nonaccrual loans $1,427 $1,295 10% $552 159%
Accruing loans
past due 90 days
and over - - - - -
------ ------ ------ ----
Total nonperforming
loans 1,427 1,295 10 552 159
Other real estate
owned 37 - - 86 (58)
------ ----- ------ -----
Total
nonperforming
assets $1,464 $1,295 13 $638 129
====== ====== ====
Nonperforming
assets to total
assets 0.28% 0.31% % (10)% 0.13% % 118%
Nonperforming
loans to total
assets 0.27 0.31 (12) 0.11 146
Nonperforming
loans to total
loans 0.43 0.42 1 0.17 150
Allowance for
loan losses to
nonperforming
assets 178.0 178.7 - 374.7 (52)
Allowance for
loan losses to
nonperforming
loans 182.6 178.7 2 433.1 (58)
Allowance for
loan losses to
total loans 0.78 0.75 4 0.75 3
Year-to-date loan
charge-offs $212 $125 69% $123 72%
Year-to-date loan
recoveries 45 11 315 38 19
Year-to-date net
loan charge-offs 167 114 48 85 97
Annualized YTD net
loan charge-offs
to total loans 0.05% 0.04% 36% 0.04% 39%
NON-GAAP PRO FORMA NET INCOME 4Q 2008 YTD 2008
------- --------
Reported net income (loss) $(799,097) $2,715,592
Add: OTTI charge (after tax) 1,869,700 1,869,700
Add: ATM shortage
charge (after tax) 572,200 572,200
------- -------
Non-GAAP net income $1,642,803 $5,157,492
========== ==========
SOURCE: Home Bancorp, Inc.
Web site: http://www.home24bank.com/
