(337) 237-1960
LAFAYETTE, La., July 29 /PRNewswire-FirstCall/ -- 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 $1.4 million for the second quarter of 2009, an increase of $334,000, or 30%, compared to the second quarter of 2008 and a decrease of $287,000, or 17%, compared to the first quarter of 2009. Diluted earnings per share were $0.18 for the second quarter of 2009, a decrease of 14% from the $0.21 per share reported for the first quarter of 2009. Net income for the first six months of 2009 was $3.2 million, an increase of $1.0 million, or 49%, compared to the first six months of 2008. Second quarter 2009 results include the impact of the FDIC's special assessment of $132,000 (after tax), or $0.02 per diluted share.
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 six months of 2008.
"We continue to owe our strong results to the hard work of our employees," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "Their dedication to serving our customers produces new customer opportunities daily."
"Home Bank's commitment to our customers and strong capital base, which remains among the best in the country, gives the communities we serve confidence we will be there for them even through tough times," added Mr. Bordelon.
The Company's common stock was added to the Russell 3000 Index in June 2009. The index measures the performance of the 3,000 largest companies in the United States based on market capitalization.
Loans and Credit Quality
Loans totaled $342.7 million at June 30, 2009, an increase of $27.5 million, or 9%, from June 30, 2008, and an increase of $6.3 million, or 2%, from March 31, 2009. The Company's loan mix continues to change as commercial loan balances have grown, while 1-4 family mortgage loan balances continue to decrease.
The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.
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June 30, December 31, Increase (Decrease)
(dollars in thousands) 2009 2008 Amount Percent
-------------------------------------------------------------------------
Real estate loans:
One- to four-family
first mortgage $126,156 $138,173 $(12,017) (9)%
Home equity loans
and lines 23,676 23,127 549 2
Commercial real estate 95,563 84,096 11,467 14
Construction and land 39,868 35,399 4,469 13
Multi-family residential 6,303 7,142 (839) (12)
-------------------------------------------------------------------------
Total real estate loans 291,566 287,937 3,629 1
-------------------------------------------------------------------------
Other loans:
Commercial 36,608 34,434 2,174 6
Consumer 14,485 13,197 1,288 10
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Total other loans 51,093 47,631 3,462 7
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Total loans $342,659 $335,568 $7,091 2%
=========================================================================
Commercial real estate loan growth during 2009 has primarily been driven by loans on owner-occupied office buildings in the Bank's market areas. Construction and land loan growth during the year is primarily attributable to loans to builders on pre-sold single-family residential properties in the Bank's market areas. Non-real-estate commercial loan growth in 2009 relates primarily to equipment and accounts receivable financing provided to relatively small businesses located in south Louisiana.
Net loan charge-offs for the first six months of 2009 were $6,000, compared to $5,000 for the same period in 2008. Non-performing assets totaled $2.4 million, or 0.46%, of total assets at June 30, 2009, compared to $836,000 and $2.5 million at June 30, 2008 and March 31, 2009, respectively. The Company increased its provision for loan losses to $248,000 during the second quarter of 2009, compared to provisions of $99,000 and $174,000 during the second quarter of 2008 and the first quarter of 2009, respectively.
As of June 30, 2009, the allowance for loan losses as a percentage of total loans was 0.88%, compared to 0.75% at June 30, 2008 and 0.83% at March 31, 2009.
Investment Securities Portfolio
The Company's investment securities portfolio totaled $113.3 million at June 30, 2009, an increase of $44.4 million, or 64%, from June 30, 2008, and a decrease of $2.9 million, or 2%, from March 31, 2009. The increase from June 30, 2008 was the result of the Company's investment of a portion of the $87.2 million in net IPO proceeds received in the fourth quarter of 2008. At June 30, 2009, the Company had an unrealized loss position on its investment securities portfolio of $4.9 million, compared to unrealized losses of $1.1 million and $7.2 million at June 30, 2008 and March 31, 2009, respectively. The unrealized loss relates primarily to the Company's non-agency mortgage-backed securities holdings, which amounted to $48.4 million, or 9% of total assets, at June 30, 2009.
The following table summarizes the Company's non-agency mortgage-backed securities portfolio as of June 30, 2009 (in thousands).
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Collateral Tranche S&P Rating # of Amortized Unrealized
Securities Cost Gain/(Loss)
Prime Super senior AAA 5 $11,904 $(521)
Prime Super senior Investment 1 1,776 (398)
grade (1)
Prime Super senior Below investment 1 1,111 (466)
grade
Prime Senior AAA (2) 11 25,571 (3,464)
Prime Senior support Investment 3 3,510 (492)
grade (1)
Prime Senior support Below investment 1 544 47
grade
Alt-A Senior AAA 1 1,130 26
Alt-A Senior Below investment 1 1,974 (987)
grade (3)
Alt-A Senior support Below investment 1 842 (98)
grade
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Total non-agency mortgage-backed
securities 25 $48,362 $(6,353)
==========================================================================
(1) S&P investment-grade ratings below "AAA".
(2) Includes one security with an amortized cost of $2.1 million and an
unrealized loss of $32,000 not rated by S&P. This security is rated
"Aaa" by Moody's.
(3) This security is not rated by S&P. This security is rated "Caa2" by
Moody's.
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
Home Bank maintains contracts with two counterparties to provide cash for ATMs at approximately 1,300 locations throughout the United States. Cash invested at other ATM locations totaled $25.8 million at June 30, 2009, a decrease of $26,000 from June 30, 2008, and an increase of $1.5 million from March 31, 2009. The Bank's contracts with its ATM counterparties, which were set to expire during the second quarter of 2009, were extended for approximately 90 days to assist the counterparties in transitioning their business to other financial institutions. The Bank expects to receive all cash invested at other ATM locations back from the counterparties in 2009.
Deposits
Deposits totaled $371.6 million at June 30, 2009, an increase of $15.9 million, or 4%, from June 30, 2008, and a decrease of $3.5 million, or 1%, from March 31, 2009. The Company has continued to focus on growing its core deposit base (i.e., checking, savings and money market accounts), which has increased $11.6 million, or 6%, during the first half of 2009.
The following table sets forth the composition of the Company's deposits as of the dates indicated.
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June 30, December 31, Increase (Decrease)
(dollars in thousands) 2009 2008 Amount Percent
------------------------------------------------------------------------
Demand deposit $64,929 $67,047 $(2,118) (3)%
Savings 21,694 19,741 1,953 10
Money market 79,997 68,850 11,147 16
NOW 42,857 42,200 657 2
Certificates of deposit 162,154 156,307 5,847 4
------------------------------------------------------------------------
Total deposits $371,631 $354,145 $17,486 5
========================================================================
Net Interest Income
Net interest income for the second quarter of 2009 totaled $6.1 million, an increase of $1.7 million, or 40%, compared to the second quarter of 2008, and an increase of $236,000, or 4%, compared to the first quarter of 2009. The Company's net interest margin was 4.87% for the second quarter of 2009, 66 basis points higher than the same quarter a year ago and 15 basis points higher than the first quarter of 2009. The increase in the net interest margin is primarily the result of higher average interest-earning assets and reduced funding costs.
Average interest-earning assets totaled $503.0 million for the quarter ended June 30, 2009, representing increases of 21% and 1% from the second quarter of 2008 and the first quarter of 2009, respectively. The average yield on the Company's interest-earning assets for the quarter ended June 30, 2009 was 6.16%, a decrease of 28 basis points and an increase of 10 basis points compared to the quarters ended June 30, 2008 and March 31, 2009, respectively.
Average interest-bearing liabilities totaled $329.8 million for the quarter ended June 30, 2009, a 1% decrease and a 1% increase compared to the quarters ended June 30, 2008 and March 31, 2009, respectively. The average rate paid on interest-bearing liabilities for the quarter ended June 30, 2009 was 1.98%, a decrease of 81 and six basis points compared to the quarters ended June 30, 2008 and March 31, 2009, respectively.
Noninterest Income
Noninterest income for the second quarter of 2009 was $1.0 million, an increase of $173,000, or 21%, and $47,000, or 5%, compared to the quarters ended June 30, 2008 and March 31, 2009, respectively. 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 second quarter of 2009 totaled $4.6 million, an increase of $1.2 million, or 36%, and $635,000, or 16%, compared to the quarters ended June 30, 2008 and March 31, 2009, respectively. The primary reason for the increase in noninterest expense relates to higher compensation and benefits expense. Compensation and benefits expense has increased primarily due to three factors: 1) the Bank's expansion into Baton Rouge, where two full-service banking offices were opened during the second half of 2008; 2) the employee stock ownership plan ("ESOP"), which commenced during the fourth quarter of 2008; and 3) award grants under the stock option and recognition and retention plans approved by the Company's shareholders in May 2009. Award grants were issued mid-quarter under the stock option and recognition and retention plans, resulting in $182,000 of related expense for the second quarter of 2009. Based on grants awarded by the stock option and recognition and retention plans to date, the Company anticipates compensation expense related to these plans of approximately $350,000 in the aggregate per quarter during the remainder of the five-year vesting period. Other increases in noninterest expense were the result of higher professional and other fees due to the increased cost of operating as a public company, the Louisiana bank shares tax and the FDIC's special assessment of five basis points assessed on all FDIC-insured depository institutions. In addition, the FDIC also has increased the base insurance premium assessment on deposits.
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."
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, 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. 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 forwardlooking statements are made or to reflect the occurrence of unanticipated events.
HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF FINANCIAL CONDITION
June 30, June 30, %
2009 2008 Change
---- ---- ------
Assets
Cash and cash equivalents $14,006,806 $14,453,603 (3)%
Interest-bearing deposits
in banks 1,289,000 2,673,000 (52)
Cash invested at other
ATM locations 25,816,329 25,842,389 -
Securities available for
sale, at fair value 109,817,830 64,853,202 69
Securities held to maturity 3,512,665 4,082,337 (14)
Mortgage loans held for sale 4,237,324 535,000 692
Loans, net of unearned
income 342,659,432 315,192,357 9
Allowance for loan losses (3,021,850) (2,377,968) 27
---------- ---------- --
Loans, net 339,637,582 312,814,389 9
----------- ----------- -
Office properties and
equipment, net 15,249,373 12,005,024 27
Cash surrender value of
bank-owned life insurance 5,395,580 5,134,487 5
Accrued interest receivable
and other assets 8,480,735 5,699,519 49
--------- --------- --
Total Assets $527,443,224 $448,092,950 18%
============ ============ ==
Liabilities
Deposits $371,631,130 $355,760,365 4%
Federal Home Loan Bank
advances 22,893,099 38,856,903 (41)
Accrued interest payable and
other liabilities 2,724,291 2,716,604 -
--------- --------- -
Total Liabilities 397,248,520 397,333,872 -
----------- ----------- -
Shareholders' Equity
Common stock $89,270 $- -%
Additional paid-in capital 87,357,709 - -
Unearned compensation (9,934,075) - -
Retained earnings 55,918,381 51,461,993 9
Accumulated other
comprehensive income (loss) (3,236,581) (702,915) (360)
---------- -------- ----
Total Shareholders' Equity 130,194,704 50,759,078 156
----------- ---------- ---
Total Liabilities and
Shareholders' Equity $527,443,224 $448,092,950 18%
============ ============ ==
March 31, December 31,
2009 2008
---- ----
Assets
Cash and cash equivalents $25,592,391 $20,150,248
Interest-bearing deposits in banks 1,388,000 1,685,000
Cash invested at other ATM locations 24,328,114 24,243,780
Securities available for sale, at fair
value 112,296,397 114,235,261
Securities held to maturity 3,895,918 4,089,466
Mortgage loans held for sale 1,590,600 996,600
Loans, net of unearned income 336,389,803 335,568,071
Allowance for loan losses (2,780,698) (2,605,889)
---------- ----------
Loans, net 333,609,105 332,962,182
----------- -----------
Office properties and equipment, net 15,227,422 15,325,997
Cash surrender value of bank-owned life
insurance 5,334,033 5,268,817
Accrued interest receivable and other
assets 9,633,416 9,439,637
--------- ---------
Total Assets $532,895,396 $528,396,988
============ ============
Liabilities
Deposits $375,142,247 $354,145,105
Federal Home Loan Bank advances 24,207,021 44,420,795
Accrued interest payable and other
liabilities 4,246,421 2,868,362
--------- ---------
Total Liabilities 403,595,689 401,434,262
----------- -----------
Shareholders' Equity
Common stock $89,270 $89,270
Additional paid-in capital 87,165,161 87,182,281
Unearned compensation (6,962,960) (7,052,230)
Retained earnings 53,778,603 52,055,071
Accumulated other comprehensive income
(loss) (4,770,367) (5,311,666)
---------- ----------
Total Shareholders' Equity 129,299,707 126,962,726
----------- -----------
Total Liabilities and Shareholders' Equity $532,895,396 $528,396,988
============ ============
HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
For The Three Months Ended
June 30, %
2009 2008 Change
---- ---- ------
Interest Income
Loans, including fees $5,596,564 $5,393,111 4%
Investment securities 1,786,673 965,252 85
Other investments and deposits 350,842 309,366 13
------- ------- --
Total interest income 7,734,079 6,667,729 16
--------- --------- --
Interest Expense
Deposits 1,420,771 2,065,285 (31)%
Federal Home Loan Bank
advances 210,138 241,681 (13)
------- ------- ---
Total interest expense 1,630,909 2,306,966 (29)
--------- --------- ---
Net interest income 6,103,170 4,360,763 40
Provision for loan losses 248,487 98,448 152
------- ------ ---
Net interest income after
provision for loan losses 5,854,683 4,262,315 37
--------- --------- --
.
Noninterest Income
Service fees and charges 444,138 421,212 5%
Bank card fees 282,536 233,885 21
Gain on sale of loans, net 174,905 81,119 116
Loss on sale of real estate
owned, net - (3,278) -
Income from bank-owned life
insurance 61,547 63,936 (4)
Other income 43,049 36,998 16
------ ------ --
Total noninterest income 1,006,175 833,872 21
--------- ------- --
Noninterest Expense
Compensation and benefits 2,597,488 2,143,498 21%
Occupancy 330,030 302,210 9
Marketing and advertising 154,279 158,523 (3)
Data processing and
communication 374,932 363,988 3
Professional fees 248,363 103,363 140
Franchise and shares tax 226,250 - -
Other expenses 710,110 352,736 101
------- ------- ---
Total noninterest expense 4,641,452 3,424,318 36
--------- --------- --
Income before income tax
expense 2,219,406 1,671,869 33
Income tax expense 782,400 568,435 38
------- ------- --
Net income $1,437,006 $1,103,434 30%
========== ========== ==
Earnings per share - basic $0.18 N/A N/A
===== ======= =======
Earnings per share - diluted $0.18 N/A N/A
===== ======= =======
For The Six Months Ended
June 30, %
2009 2008 Change
---- ---- ------
Interest Income
Loans, including fees $11,118,314 $10,800,448 3%
Investment securities 3,489,469 1,750,661 99
Other investments and deposits 663,252 649,818 2
------- ------- -
Total interest income 15,271,035 13,200,927 16
---------- ---------- --
Interest Expense
Deposits 2,848,043 4,452,304 (36)%
Federal Home Loan Bank
advances 453,175 403,300 12
------- ------- --
Total interest expense 3,301,218 4,855,604 (32)
--------- --------- ---
Net interest income 11,969,817 8,345,323 43
Provision for loan losses 422,149 68,937 512
------- ------ ---
Net interest income after
provision for loan losses 11,547,668 8,276,386 40
---------- --------- --
.
Noninterest Income
Service fees and charges 898,844 827,465 9%
Bank card fees 543,260 441,366 23
Gain on sale of loans, net 315,292 150,998 109
Loss on sale of real estate
owned, net - (3,488) -
Income from bank-owned life
insurance 126,763 127,872 (1)
Other income 81,121 55,445 46
------ ------ --
Total noninterest income 1,965,280 1,599,658 23
--------- --------- --
Noninterest Expense
Compensation and benefits 4,918,636 4,235,999 16%
Occupancy 646,402 589,937 10
Marketing and advertising 321,932 316,573 2
Data processing and
communication 720,198 701,748 3
Professional fees 461,935 165,747 179
Franchise and shares tax 452,500 - -
Other expenses 1,126,931 650,110 73
--------- ------- --
Total noninterest expense 8,648,534 6,660,114 30
--------- --------- --
Income before income tax
expense 4,864,414 3,215,930 51
Income tax expense 1,703,876 1,093,416 56
--------- --------- --
Net income $3,160,538 $2,122,514 49%
========== ========== ==
Earnings per share - basic $0.39 N/A N/A
===== ======= =======
Earnings per share - diluted $0.39 N/A N/A
===== ======= =======
HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
For The Three Months Ended
June 30, %
2009 2008 Change
---- ---- ------
(dollars in thousands
except per share data)
EARNINGS DATA
Total interest income $7,734 $6,668 16
Total interest expense 1,631 2,307 (29)
----- -----
Net interest income 6,103 4,361 40
----- -----
Provision for loan
losses 248 99 151
Total noninterest income 1,006 834 21
Total noninterest
expense 4,642 3,424 36
Income tax expense 782 569 37
--- ---
Net income $1,437 $1,103 30
====== ======
Earnings per share -
diluted $0.18 N/A N/A
===== =======
AVERAGE BALANCE SHEET
DATA
Total assets $533,715 $443,235 20%
Total earning assets 502,987 415,296 21
Loans 343,798 315,202 9
Interest bearing
deposits 305,156 298,548 2
Total deposits 375,188 356,153 5
Total shareholders'
equity 129,369 50,854 154
SELECTED RATIOS (1)
Return on average assets 1.08% 1.00% 8%
Return on average total
equity 4.44 8.68 (49)
Efficiency ratio (2) 65.29 65.92 (1)
Average equity to
average assets 24.24 11.48 111
Core capital ratio
(3) (4) 19.79 11.44 73
Net interest margin (5) 4.87 4.21 16
June 30, June 30, %
2009 2008 Change
---- ---- ----------
CREDIT QUALITY (3) (6)
Nonaccrual loans $2,438 $787 210%
Accruing loans past
due 90 days and over - - -
--- ---
Total nonperforming
loans 2,438 787 210
Other real estate owned - 49 -
--- --
Total nonperforming
assets $2,438 $836 192
====== ====
Nonperforming assets to
total assets 0.46% 0.19% 142%
Nonperforming loans to
total assets 0.46 0.18 156
Nonperforming loans to
total loans 0.71 0.25 184
Allowance for loan
losses to
nonperforming assets 123.9 284.4 (56)
Allowance for loan
losses to
nonperforming loans 123.9 302.3 (59)
Allowance for loan
losses to total loans 0.88 0.75 17
Year-to-date loan
charge-offs $17 $35 (51)%
Year-to-date loan
recoveries 11 30 (63)
-- --
Year-to-date net
loan charge-offs
(recoveries) 6 5 20
=== ===
Annualized YTD net loan
charge-offs to total
loans -%(7) -%(7) -%
For The
Three
Months Ended %
March 31, 2009 Change
------------------ ----------
(dollars in thousands
except per share data)
EARNINGS DATA
Total interest income $7,537 3%
Total interest expense 1,670 (2)
-----
Net interest income 5,867 4
-----
Provision for loan losses 174 43
Total noninterest income 959 5
Total noninterest expense 4,007 16
Income tax expense 921 (15)
---
Net income $1,724 (17)
======
Earnings per share - diluted $0.21 (14)
=====
AVERAGE BALANCE SHEET DATA
Total assets $525,560 2%
Total earning assets 497,174 1
Loans 339,528 1
Interest bearing deposits 290,590 5
Total deposits 357,472 5
Total shareholders' equity 128,865 -
SELECTED RATIOS (1)
Return on average assets 1.31 (18)%
Return on average total
equity 5.35 (17)
Efficiency ratio (2) 58.71 11
Average equity to average
assets 24.52 (1)
Core capital ratio (3) (4) 19.19 3
Net interest margin (5) 4.72 3
March 31, %
2009 Change
---- ----------
CREDIT QUALITY (3) (6)
Nonaccrual loans $2,489 (2)%
Accruing loans past due 90
days and over - -
-
Total nonperforming loans 2,489 (2)
Other real estate owned 37 -
--
Total nonperforming assets $2,526 (3)
======
Nonperforming assets to total
assets 0.47% (2)%
Nonperforming loans to total
assets 0.47 (2)
Nonperforming loans to
total loans 0.74 (4)
Allowance for loan losses to
nonperforming assets 110.1 13
Allowance for loan losses to
nonperforming loans 111.7 11
Allowance for loan losses to
total loans 0.83 6
Year-to-date loan charge-offs $2 750%
Year-to-date loan recoveries 3 267
-
Year-to-date net loan
charge-offs (recoveries) (1) 700
==
Annualized YTD net loan charge-
offs to total loans - -%(7)
(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.
SOURCE: Home Bancorp, Inc.
Web site: http://www.home24bank.com/
