(337) 237-1960
LAFAYETTE, La., April 29 /PRNewswire-FirstCall/ -- Home Bancorp, Inc. (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 $1.7 million for the first quarter of 2009, an increase of $704,000, or 69%, compared to the first quarter of 2008 and an increase of $2.5 million, or 316%, compared to the fourth quarter of 2008. Diluted earnings per share were $0.21 for the first quarter of 2009, an increase of 310% from the $0.10 loss per share reported for the fourth quarter of 2008.
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. Therefore, no shares were outstanding in the first quarter of 2008.
"We are incredibly pleased to report record quarterly earnings, especially in light of the current economic environment," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "Although South Louisiana is not immune to the economic challenges facing our nation, our markets continue to outperform most of the U.S. Our bankers continue to have success gaining new customers seeking our quality of service."
"Core deposit growth was exceptional during the quarter," added Mr. Bordelon. "We are also excited with the continued change in the mix of our loan portfolio."
Loans and Credit Quality
Loans totaled $336.4 million at March 31, 2009, an increase of $28.3 million, or 9%, from March 31, 2008, and an increase of $822,000, or 0.2%, from December 31, 2008. While net loans were essentially unchanged compared to the previous quarter, the change in the Company's loan mix was favorable as paydowns on 1-4 family mortgage loans were offset by commercial loan growth. Commercial loans (including commercial real estate, construction and land, multi-family residential and other commercial loans) increased $4.9 million, or 3%, during the first quarter of 2009.
The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.
March 31, December 31, Increase/(Decrease)
(dollars in thousands) 2009 2008 Amount Percent
Real estate loans:
One- to four-family
first mortgage $133,720 $138,173 $(4,453) (3)%
Home equity loans
and lines 22,793 23,127 (334) (1)
Commercial real estate 86,388 84,096 2,292 3
Construction and land 37,203 35,399 1,804 5
Multi-family residential 6,481 7,142 (661) (9)
Total real estate loans 286,585 287,937 (1,352) (1)
Other loans:
Commercial 35,928 34,434 1,494 4
Consumer 13,877 13,197 680 5
Total other loans 49,805 47,631 2,174 5
Total loans $336,390 $335,568 $822 -%
The Company recorded a $174,000 provision for loan losses during the first quarter of 2009 compared to a reversal of $30,000 during the first quarter of 2008 and a $298,000 provision for the fourth quarter of 2008. Net loan recoveries for the first quarter of 2009 were $1,000 compared to net charge-offs of $1,000 and $82,000 for the first and fourth quarters of 2008, respectively. Non-performing assets totaled $2.5 million, or 0.47%, of total assets at March 31, 2009, compared to $1.4 million and $1.5 million at March 31, 2008 and December 31, 2008, respectively. The increase in nonperforming assets during the first quarter of 2009 relates to three single family first mortgage loans which were placed on nonaccrual during the quarter. The Company does not anticipate any principal loss on these three loans.
As of March 31, 2009, the allowance for loan losses as a percentage of total loans was 0.83%, compared to 0.74% at March 31, 2008 and 0.78% at December 31, 2008.
Investment Securities Portfolio
The Company's investment securities portfolio totaled $116.2 million at March 31, 2009, an increase of $49.7 million, or 75%, from March 31, 2008, and a decrease of $2.1 million, or 2%, from December 31, 2008. The increase from March 31, 2008 was the result of the Company's investment of $87.2 million in net IPO proceeds in the fourth quarter of 2008. At March 31, 2009, the Company had an unrealized loss position on its investment securities portfolio of $7.2 million compared to an unrealized gain of $1.5 million and an unrealized loss of $8.0 million at March 31, 2008 and December 31, 2008, respectively. The unrealized loss relates primarily to the Company's non-agency mortgage-backed securities holdings, which amounted to $51.7 million, or 10% of total assets, at March 31, 2009. No charge for the other-than-temporary impairment ("OTTI") of investment securities was recorded during the first quarter of 2009, compared to a $2.8 million charge during the fourth quarter of 2008.
The following table summarizes the Company's non-agency mortgage-backed securities portfolio as of March 31, 2009.
# of Unrealized S&P
Collateral Securities Amortized Cost Gain/(Loss) Rating
Prime 16 $39,222,000 $(6,723,000) AAA
Prime 1 2,336,000 (483,000) A
Prime 1 2,128,000 (31,000) Not rated (1)
Prime 1 1,027,000 (68,000) BBB
Prime 1 1,927,000 (418,000) BB
Prime 1 586,000 21,000 B
Prime 1 1,142,000 (651,000) CCC
Alt-A 1 1,422,000 47,000 AAA
Alt-A 1 867,000 (100,000) B
Alt-A 1 1,005,000 4,000 Not rated (2)
Total
non-agency
mortgage-
backed
securities 25 $51,662,000 $(8,402,000)
(1) Rated "Aaa" by Moody's.
(2) Rated "Caa2" 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 1,400 locations throughout the United States. Cash invested at other ATM locations totaled $24.3 million at March 31, 2009, an increase of $6.1 million, or 33%, from March 31, 2008, and an increase of $84,000, or 0.3%, from December 31, 2008. The Bank's contracts with its ATM counterparties expire during the second quarter of 2009. The Bank does not intend to renew the contracts; thus, we expect to receive all cash invested at other ATM locations back from the counterparties in 2009.
Deposits totaled $375.1 million at March 31, 2009, an increase of $23.0 million, or 7%, from March 31, 2008, and an increase of $21.0 million, or 6%, from December 31, 2008. The Company's continued focus is on growing its core deposit base (i.e., checking, savings and money market accounts), which increased $13.4 million, or 7%, during the first quarter of 2009.
The following table sets forth the composition of the Company's deposits at the dates indicated.
March 31, December 31, Increase(Decrease)
(dollars in thousands) 2009 2008 Amount Percent
Demand deposit $71,181 $67,047 $4,134 6%
Savings 21,812 19,741 2,071 10
Money market 74,624 68,850 5,774 8
NOW 43,643 42,200 1,443 3
Certificates of deposit 163,882 156,307 7,575 5
Total deposits $375,142 $354,145 $20,997 6%
Net Interest Income
Net interest income for the first quarter of 2009 totaled $5.9 million, an increase of $1.9 million, or 47%, compared to the first quarter of 2008, and an increase of $272,000, or 5%, compared to the fourth quarter of 2008. The Company's net interest margin was 4.72% for the first quarter of 2009, 75 basis points higher than the same quarter a year ago and 14 basis points higher than the fourth quarter of 2008.
Average interest-earning assets totaled $497.2 million for the quarter ended March 31, 2009, an increase of 24% and 2% compared to the quarters ended March 31, 2008 and December 31, 2008, respectively. The average yield on interest-earning assets for the quarter ended March 31, 2009 was 6.06%, a decrease of 45 basis points and an increase of five basis points compared to the quarters ended March 31, 2008 and December 31, 2008, respectively.
Average interest-bearing liabilities totaled $327.0 million for the quarter ended March 31, 2009, an increase of 1% and 6% compared to the quarters ended March 31, 2008 and December 31, 2008, respectively. The average rate paid on interest-bearing liabilities for the quarter ended March 31, 2009 was 2.04%, a decrease of 111 and 21 basis points compared to the quarters ended March 31, 2008 and December 31, 2008, respectively.
Noninterest Income
Noninterest income for the first quarter of 2009 was $959,000, an increase of $193,000, or 25%, compared to the same quarter a year ago. Excluding the impact of OTTI charges of $2.8 million in the fourth quarter of 2008, first quarter 2009 noninterest income increased $139,000, or 17%, compared to the fourth quarter of 2008. The increases were primarily the result of increased gains on the sale of mortgage loans and higher levels of service fees and charges and bank card fees.
Noninterest Expense
Noninterest expense for the first quarter of 2009 totaled $4.0 million, an increase of $771,000, or 24%, compared to the same quarter a year ago. Excluding the impact of ATM losses of $867,000 in the fourth quarter of 2008, first quarter 2009 noninterest expense increased $152,000, or 4%, compared to the fourth quarter of 2008. Noninterest expense levels have increased over the past year due primarily to increased compensation and benefits expense resulting from our Baton Rouge expansion, where we opened two full-service banking offices during the second half of 2008, as well as expense related to our employee stock ownership plan ("ESOP"), higher professional and other fees due to the increased cost of operating as a public company and the Louisiana bank shares tax. The Company was not required to pay the Louisiana bank shares tax prior to Home Bank's mutual to stock conversion in October 2008.
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 ATM losses. 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 Annual Report on Form 10-K for the year ended December 31, 2009, 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
March 31, March 31, % 31, %
2009 2008 Change 2008 Change
---- ---- ------ ---- ------
Assets
Cash and cash
equivalents $25,592,391 $13,168,514 94% $20,150,248 27%
Interest-
bearing
deposits in
banks 1,388,000 2,970,000 (53) 1,685,000 (18)
Cash invested
at other ATM
locations 24,328,114 18,261,597 33 24,243,780 -
Securities
available
for sale,
at fair value 112,296,397 62,052,234 81 114,235,261 (2)
Securities
held to
maturity 3,895,918 4,481,269 (13) 4,089,466 (5)
Mortgage
loans held
for sale 1,590,600 1,639,400 (3) 996,600 60
Loans, net
of unearned
income 336,389,803 308,099,102 9 335,568,071 -
Allowance for
loan losses (2,780,698) (2,283,796) (22) (2,605,889) (7)
---------- ---------- --- ---------- --
Loans, net 333,609,105 305,815,306 9 332,962,182 -
----------- ----------- --- ----------- ---
Office
properties
and equipment,
net 15,227,422 11,656,909 31 15,325,997 (1)
Cash surrender
value of
bank-owned
life insurance 5,334,033 5,070,551 5 5,268,817 1
Accrued interest
receivable
and other
assets 9,633,416 4,937,039 95 9,439,637 2
--------- --------- -- --------- ---
Total Assets $532,895,396 $430,052,819 24% $528,396,988 1%
============ ============ == ============ ==
Liabilities
Deposits $375,142,247 $352,128,470 7% $354,145,105 6%
Federal Home
Loan Bank
advances 24,207,021 23,370,241 4 44,420,795 (46)
Accrued
interest
payable and
other
liabilities 4,246,421 3,183,370 33 2,868,362 48
--------- --------- -- --------- --
Total Liabilities 403,595,689 378,682,081 7 401,434,262 1
----------- ----------- --- ----------- ---
Shareholders'
Equity
Common stock $89,270 $- -% $89,270 -%
Additional paid
-in capital 87,165,161 - - 87,182,281 -
Unearned ESOP
shares (6,962,960) - - (7,052,230) 1
Retained
earnings 53,778,603 50,358,559 7 52,055,071 3
Accumulated
other
comprehensive
income (loss) (4,770,367) 1,012,179 (571) (5,311,666) 10
---------- --------- ---- ---------- --
Total
Shareholders'
Equity 129,299,707 51,370,738 152 126,962,726 2
----------- ---------- --- ----------- ---
Total Liabilities
and
Shareholders'
Equity $532,895,396 $430,052,819 24% $528,396,988 1%
============ ============ == ============ ===
HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
For The
Three
For The Months
Three Months Ended Ended
March 31, % December 31, %
2009 2008 Change 2008 Change
---- ---- ------ ---- ------
Interest Income
Loans, including fees $5,521,750 $5,407,337 2% $5,534,213 -%
Investment securities 1,702,796 785,409 117 1,478,963 15
Other investments
and deposits 312,410 340,452 (8) 317,715 (2)
------- ------- -- ------- --
Total interest
income 7,536,956 6,533,198 15 7,330,891 3
--------- --------- -- --------- ---
Interest Expense
Deposits 1,427,272 2,387,019 (40)% 1,575,505 (9)%
Federal Home Loan
Bank advances 243,037 161,619 50 160,495 51
------- ------- -- ------- --
Total interest
expense 1,670,309 2,548,638 (34) 1,736,000 (4)
--------- --------- --- --------- --
Net interest income 5,866,647 3,984,560 47 5,594,891 5
Provision for (reversal
of) loan losses 173,662 (29,511) (688) 297,775 (42)
------- ------- ---- ------- ---
Net interest income
after provision for
(reversal of) loan
losses 5,692,985 4,014,071 42 5,297,116 7
--------- --------- -- --------- ---
Noninterest Income
Service fees and
charges 454,706 406,253 12% 412,763 10%
Bank card fees 260,724 207,481 26 250,911 4
Gain on sale of
loans, net 140,387 69,879 101 61,903 127
Income from bank-owned
life insurance 65,216 63,936 2 67,345 (3)
Other-than-temporary
impairment of
securities - - - (2,832,920) 100
Other income 38,072 18,237 109 26,694 43
------ ------ --- ------ --
Total noninterest
income 959,105 765,786 25 (2,013,304) 148
------- ------- -- ---------- ---
Noninterest Expense
Compensation
and benefits 2,321,148 2,092,501 11% 2,359,437 (2)%
Occupancy 316,372 287,727 10 320,589 (1)
Marketing and
advertising 167,653 158,050 6 198,147 (15)
Data processing
and communication 345,266 337,760 2 352,752 (2)
Professional fees 213,572 62,384 242 175,208 22
ATM losses - - - 867,389 (100)
Franchise and
shares tax 226,250 - - - -
Other expenses 416,821 297,373 40 448,474 (7)
------- ------- -- ------- --
Total noninterest
expense 4,007,082 3,235,795 24 4,721,996 (15)
--------- --------- -- --------- ---
Income (loss) before
income tax expense
(benefit) 2,645,008 1,544,062 71 (1,438,184) 284
Income tax expense
(benefit) 921,476 524,981 76 (639,089) 244
------- ------- -- -------- ---
Net income (loss) $1,723,532 $1,019,081 69% $(799,095) 316%
========== ========== == ========= ===
Earnings (loss) per
share - basic $0.21 N/A N/A $(0.10) 310%
===== === === ====== ===
Earnings (loss) per
share - diluted $0.21 N/A N/A $(0.10) 310%
===== === === ====== ===
NON-GAAP PRO FORMA NET
INCOME
Reported net income (loss) $(799,095)
Add: OTTI charge
(after tax) 1,869,700
Add: ATM losses
(after tax) 572,200
-------
Non-GAAP net income $1,642,805
==========
HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
For The
Three
For The Months
Three Months Ended Ended
March 31, % December 31, %
2009 2008 Change 2008 Change
---- ---- ------ ---- ------
AVERAGE BALANCE SHEET DATA
(dollars in thousands)
Total assets $525,560 $428,939 23% $503,947 4%
Total earning assets 497,174 401,597 24 488,294 2
Loans 339,528 309,906 10 327,951 4
Interest bearing deposits 290,590 307,445 (5) 284,154 2
Total deposits 357,472 358,899 - 367,935 (3)
Total shareholders' equity 128,865 50,687 154 106,814 21
SELECTED RATIOS (1)
Return on average assets 1.31% 0.95% 38% (0.63) 308%
Return on average total
equity 5.35 8.04 (33) (2.99) 279
Efficiency ratio (2) 58.71 68.12 (14) 131.84 (55)
Average equity to average
assets 24.52 11.82 107 21.20 16
Core capital ratio (3)(4) 19.19 11.75 63 19.10 -
Net interest margin (5) 4.72 3.97 19 4.58 3
March March December
31, 31, % 31, %
2009 2008 Change 2008 Change
---- ---- ------ ---- --------
CREDIT QUALITY
(dollars in thousands)(3)(6)
Nonaccrual loans $2,489 $1,338 86% $1,427 74%
Accruing loans past due
90 days and over - - - - -
--- --- ---
Total nonperforming loans 2,489 1,338 86 1,427 74
Other real estate owned 37 60 (38) 37 1
-- -- --
Total nonperforming
assets $2,526 $1,398 81 $1,464 73
====== ====== ======
Nonperforming assets
to total assets 0.47% 0.33% 42% 0.28% 68%
Nonperforming loans
to total assets 0.47 0.31 52 0.27 74
Nonperforming loans to
total loans 0.74 0.43 72 0.43 72
Allowance for loan losses
to nonperforming assets 110.1 163.5 (33) 178.0 (38)
Allowance for loan losses
to nonperforming loans 111.7 170.7 (35) 182.6 (39)
Allowance for loan losses
to total loans 0.83 0.74 12 0.78 6
Year-to-date loan
charge-offs $2 $26 (92)% $212 (99)%
Year-to-date loan
recoveries 3 25 (88) 45 (93)
--- -- --
Year-to-date net
loan charge-offs (1) 1 (200) 167 (101)
== == ===
Annualized YTD net loan
charge-offs to total loans -%(7) -%(7) -% 0.05 (100)%
(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) Asset quality and capital ratios are end of period ratios.
(4) Capital ratios are Bank only.
(5) Net interest margin represents net interest income as a percentage
of average interest-earning assets.
(6) Nonperforming loans consist of nonaccruing loans and 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 all loans 90 days or more past due. Repossessed assets
consist of assets acquired through foreclosure or acceptance of
title in-lieu of foreclosure.
(7) Ratio is displayed as zero since calculated value is too low to be
reported.
SOURCE: Home Bancorp, Inc.
Web site: http://www.home24bank.com/
