(337) 237-1960
LAFAYETTE, La., Oct. 28 /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 $1.5 million for the third quarter of 2009, an increase of $105,000, or 8%, compared to the third quarter of 2008 and an increase $60,000, or 4%, compared to the second quarter of 2009. Diluted earnings per share were $0.17 for the third quarter of 2009, a decrease of 6% from the $0.18 per share reported for the second quarter of 2009. Net income for the first nine months of 2009 was $4.7 million, an increase of $1.1 million, or 33%, compared to the first nine months of 2008.
"Due to our outstanding bankers and resilient markets," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank, "we continue to enjoy results that exceed the industry's performance."
"Given the turmoil in our industry, many people are re-examining their banking relationships," added Mr. Bordelon. "Our history of exceptional service and commitment to the communities we serve has produced new customer opportunities for Home Bank throughout 2009. We remain focused on delivering even greater service to our customers by investing in our people, technology and facilities."
The Company also announced that its Board of Directors approved the repurchase of up to 446,344 shares, or approximately 5%, of the Company's outstanding common stock. Repurchases may be made by the Company from time-to-time in open-market or privately-negotiated transactions as, in the opinion of management, market conditions warrant.
One Year Anniversary of IPO
The Company celebrated the first anniversary of its initial public stock offering ("IPO") during October. As a result of the offering, which was completed on October 2, 2008, the Company issued a total of 8,926,875 shares of its common stock for an aggregate of $89.3 million in total offering proceeds.
"In the midst of the continuing struggles in our industry," said Mr. Bordelon, "Home Bancorp's remarkably strong capital base positions us to continue profitably growing our company." The Company did not apply for or accept any funds from the U.S. Treasury's financial institution capital purchase program.
Baton Rouge Expansion Proceeds
Home Bank began construction on its third full-service branch in Baton Rouge during the third quarter of 2009. The new branch, which will be located on Corporate Boulevard, will serve as the Bank's Baton Rouge headquarters. The new branch is expected to open during the first half of 2010. In addition to its two other full-service branches in Baton Rouge, the Bank also operates a loan production office in the market.
Loans and Credit Quality
Loans totaled $340.2 million at September 30, 2009, an increase of $22.7 million, or 7%, from September 30, 2008, and a decrease of $2.4 million, or 1%, from June 30, 2009. The Company's loan mix has changed in 2009 as commercial loan balances have grown, while one-to four- 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.
Increase (Decrease)
September 30, December 31, --------------------
(dollars in thousands) 2009 2008 Amount Percent
Real estate loans:
One- to four-family
first mortgage $125,157 $138,173 $(13,016) (9)%
Home equity loans
and lines 24,258 23,127 1,131 5
Commercial real estate 91,964 84,096 7,868 9
Construction and land 42,619 35,399 7,220 20
Multi-family residential 6,077 7,142 (1,065) (15)
------------------------ ----- ----- ------- ----
Total real estate
loans 290,075 287,937 2,138 1
Other loans:
Commercial 34,521 34,434 87 -
Consumer 15,626 13,197 2,429 18
-------- ------ ------ ----- ---
Total other loans 50,147 47,631 2,516 5
----------------- ------ ------ ----- ---
Total loans $340,222 $335,568 $4,654 1%
=========== ======== ======== ====== ===
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. Consumer loan growth in 2009 relates primarily to mobile home loans.
Net loan charge-offs for the first nine months of 2009 were $43,000, compared to $85,000 for the same period in 2008. Non-performing assets totaled $2.7 million, or 0.51% of total assets, at September 30, 2009, compared to $638,000 and $2.4 million at September 30, 2008 and June 30, 2009, respectively. The increase in non-performing assets relates primarily to owner-occupied residential real estate loans. The Company increased its provision for loan losses to $287,000 during the third quarter of 2009, compared to provisions of $92,000 and $248,000 during the third quarter of 2008 and the second quarter of 2009, respectively.
As of September 30, 2009, the allowance for loan losses as a percentage of total loans was 0.96%, compared to 0.75% at September 30, 2008 and 0.88% at June 30, 2009.
Investment Securities Portfolio
The Company's investment securities portfolio totaled $116.4 million at September 30, 2009, an increase of $36.2 million, or 45%, from September 30, 2008, and an increase of $3.1 million, or 3%, from June 30, 2009. The increase from September 30, 2008 was the result of the Company's investment of a portion of the IPO proceeds received in the fourth quarter of 2008. At September 30, 2009, the Company had a net unrealized loss position on its investment securities portfolio of $2.7 million, compared to net unrealized losses of $2.5 million and $4.9 million at September 30, 2008 and June 30, 2009, respectively. The unrealized losses relate primarily to the Company's non-agency mortgage-backed securities holdings, which amounted to $44.5 million, or 8% of total assets, at September 30, 2009.
The following table summarizes the Company's non-agency mortgage-backed securities portfolio as of September 30, 2009 (dollars in thousands).
# of Amortized Unrealized
Collateral Tranche S&P Rating Securities Cost Gain/(Loss)
---------- ------- ---------- ---------- ------ -----------
Prime Super senior AAA 5 $10,667 $194
Prime Super senior Below investment grade 2 2,639 (635)
Prime Senior AAA(1) 9 20,199 (1,685)
Prime Senior Below investment grade 1 3,322 (775)
Prime Senior support Below investment grade 4 3,920 (669)
Alt-A Senior AAA 1 983 30
Alt-A Senior Below investment grade(2) 1 1,958 (929)
Alt-A Senior support Below investment grade 1 805 (97)
----- -------------- ---------------------- -- ----- ----
Total non-agency mortgage-backed securities 24 $44,493 $(4,566)
=========================================== == ======= ========
(1) Includes one security with an amortized cost of $2.1 million and an
unrealized loss of $63,000 not rated by S&P. This security is rated
"Aaa" by Moody's.
(2) 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 has historically maintained contracts with various counterparties to provide cash for ATMs throughout the United States. The Bank has elected not to renew these contracts; hence, the balance of cash invested at other ATM locations has significantly decreased during 2009.
Cash invested at other ATM locations totaled $8.8 million at September 30, 2009, a decrease of $11.9 million from September 30, 2008, and a decrease of $17.0 million from June 30, 2009. The Bank expects to receive the balance of cash invested at other ATM locations from its one remaining counterparty during the fourth quarter of 2009.
Deposits totaled $376.6 million at September 30, 2009, an increase of $23.2 million, or 7%, from September 30, 2008, and an increase of $5.0 million, or 1%, from June 30, 2009. The Company remains focused on growing its core deposit base (i.e., checking, savings and money market accounts), which has increased $17.6 million, or 9%, during the first nine months of 2009.
The following table sets forth the composition of the Company's deposits as of the dates indicated.
September 30, December 31, Increase (Decrease)
(dollars in thousands) 2009 2008 Amount Percent
--------------------- ------------- ------------ -------- ----------
Demand deposit $66,305 $67,047 $(742) (1)%
Savings 21,782 19,741 2,041 10
Money market 86,411 68,850 17,561 26
NOW 40,921 42,200 (1,279) (3)
Certificates of deposit 161,217 156,307 4,910 3
----------------------- ------- ------- ----- ---
Total deposits $376,636 $354,145 $22,491 6%
============== ======== ======== ======= ===
Purchase of 2009 Recognition and Retention Plan Shares
In May 2009, shareholders approved the adoption of the 2009 Recognition and Retention Plan (the "Plan"). In order to fund the Plan, the related trust completed the purchase of a total of 357,075 shares of Home Bancorp's common stock in the open market since the Plan's approval at an average cost of $11.81 per share.
Net Interest Income
Net interest income for the third quarter of 2009 totaled $6.1 million, an increase of $1.3 million, or 28%, compared to the third quarter of 2008, and a decrease of $26,000, or 0.4%, compared to the second quarter of 2009. The Company's net interest margin was 4.83% for the third quarter of 2009, 52 basis points higher than the same quarter a year ago and 4 basis points lower than the second quarter of 2009. The 52 basis point increase in the net interest margin compared to the third quarter of 2008 is primarily the result of a $61.9 million increase in average interest-earning assets due primarily to the completion of the Company's IPO and the investment of the net proceeds from the IPO, as well as reduced funding costs.
Average interest-earning assets totaled $499.5 million for the quarter ended September 30, 2009, an increase of $61.9 million, or 14%, and a decrease of $3.5 million, or 1%, from the third quarter of 2008 and the second quarter of 2009, respectively. The average yield on the Company's interest-earning assets for the quarter ended September 30, 2009 was 6.09%, decreases of 20 basis points and seven basis points compared to the quarters ended September 30, 2008 and June 30, 2009, respectively.
Average interest-bearing liabilities totaled $328.5 million for the quarter ended September 30, 2009, a decrease of $7.0 million, or 2%, and $1.3 million, or 0.4%, compared to the quarters ended September 30, 2008 and June 30, 2009, respectively. The average rate paid on interest-bearing liabilities for the quarter ended September 30, 2009 was 1.88%, decreases of 67 basis points and 10 basis points compared to the quarters ended September 30, 2008 and June 30, 2009, respectively.
Noninterest Income
Noninterest income for the third quarter of 2009 was $949,000, an increase of $137,000, or 17%, and a decrease of $57,000, or 6%, compared to the quarters ended September 30, 2008 and June 30, 2009, respectively. The increase in noninterest income compared to the third quarter of 2008 was primarily the result of increased gains on sale of mortgage loans and higher levels of service fees and charges and bank card fees. The decrease in noninterest income compared to the second quarter of 2009 was primarily the result of a $70,000, or 40%, decrease in gains on sale of mortgage loans.
Noninterest Expense
Noninterest expense for the third quarter of 2009 totaled $4.7 million, an increase of $1.3 million, or 39%, and an increase of $27,000, or 1%, compared to the quarters ended September 30, 2008 and June 30, 2009, respectively. Non-interest expense for the second quarter of 2009 included a $200,000 FDIC special assessment.
The primary reason for the increase in noninterest expense from the third quarter of 2008 to the third quarter of 2009 was 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. 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, including the Louisiana bank shares tax. In addition, the FDIC has increased the base insurance premium assessment on deposits.
The primary reason for the increase in noninterest expense from the second quarter of 2009 to the third quarter of 2009 also was an increase in compensation and benefits expense. Compensation and benefits expense increased primarily due to the recognition of vesting expense related to stock-based compensation plans for a full quarter. These plans commenced and began vesting approximately halfway through the second quarter of 2009. Additionally, group insurance costs increased due to an increase in the number of claims incurred. These increases were partially offset by a decrease in data processing expenses as the result of the Company's efforts to improve operational efficiency.
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, 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
September 30, September 30, % June 30, December 31,
2009 2008 Change 2009 2008
---- ---- ------ ---- ----
Assets
Cash and cash
equivalents $37,352,620 $60,389,012 (38)% $14,006,806 $20,150,248
Interest-bearing
deposits in
banks 3,150,000 792,000 298 1,289,000 1,685,000
Cash invested at
other ATM
locations 8,802,596 20,697,177 (57) 25,816,329 24,243,780
Securities
available for
sale, at fair
value 105,049,877 76,301,887 38 109,817,830 114,235,261
Securities held
to maturity 11,372,044 3,870,154 194 3,512,665 4,089,466
Mortgage loans
held for sale 2,060,453 281,200 633 4,237,324 996,600
Loans, net of
Unearned
income 340,222,334 317,564,165 7 342,659,432 335,568,071
Allowance for
loan losses (3,271,926) (2,390,573) 37 (3,021,850) (2,605,889)
----------- ----------- -- ----------- -----------
Loans, net 336,950,408 315,173,592 7 339,637,582 332,962,182
----------- ----------- -- ----------- -----------
Office
properties
and equipment,
net 15,309,879 13,489,704 13 15,249,373 15,325,997
Cash surrender
value of
bank-owned life
insurance 5,461,662 5,201,472 5 5,395,580 5,268,817
Accrued interest
receivable and
other assets 7,900,029 6,848,881 15 8,480,735 9,439,637
--------- --------- -- --------- ---------
Total Assets $533,409,568 $503,045,079 6% $527,443,224 $528,396,988
============ ============ === ============ ============
Liabilities
Deposits $376,635,513 $353,476,182 7% $371,631,130 $354,145,105
Federal Home
Loan Bank
advances 19,879,026 15,843,422 25 22,893,099 44,420,795
Accrued interest
payable and
other
liabilities 4,302,342 82,537,048 (95) 2,724,291 2,868,362
--------- ---------- ---- --------- ---------
Total
Liabilities 400,816,881 451,856,652 (11) 397,248,520 401,434,262
----------- ----------- ---- ----------- -----------
Shareholders' Equity
Common stock $89,270 $ - -% $89,270 $89,270
Additional
paid-in
capital 87,714,515 - - 87,357,709 87,182,281
Common stock
acquired by
benefit plans (10,841,597) - - (9,934,075) (7,052,230)
Retained
earnings 57,415,818 52,854,168 9 55,918,381 52,055,071
Accumulated other
Comprehensive
loss (1,785,319) (1,665,741) 7 (3,236,581) (5,311,666)
----------- ---------- -- ----------- -----------
Total Shareholders'
Equity 132,592,687 51,188,427 159 130,194,704 126,962,726
----------- ---------- --- ----------- -----------
Total Liabilities
and Shareholders'
Equity $533,409,568 $503,045,079 6% $527,443,224 $528,396,988
============ ============ === ============ ============
HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
For The Three Months Ended For The Nine Months Ended
September 30, % September 30, %
2009 2008 Change 2009 2008 Change
---- ---- ------ ---- ---- ------
Interest Income
Loans,
Including
fees $5,616,351 $5,455,503 3% $16,734,665 $16,255,952 3%
Investment
securities 1,722,460 1,054,336 63 5,211,929 2,804,997 86
Other
Investments
and deposits 296,759 387,095 (23) 960,011 1,036,913 (7)
------- ------- ---- ------- --------- ---
Total interest
income 7,635,570 6,896,934 11 22,906,605 20,097,862 14
--------- --------- -- ---------- ---------- --
Interest Expense
Deposits 1,371,889 1,875,504 (27)% 4,219,932 6,327,808 (33)%
Federal Home
Loan Bank
advances 186,168 280,141 (34) 639,343 683,442 (6)
------- ------- ---- ------- ------- ---
Total interest
expense 1,558,057 2,155,645 (28) 4,859,275 7,011,250 (31)
--------- --------- ---- --------- --------- ---
Net interest
income 6,077,513 4,741,289 28 18,047,330 13,086,612 38
Provision for
loan losses 287,061 92,500 210 709,210 161,437 339
------- ------ --- ------- ------- ---
Net interest
income after
provision for
loan losses 5,790,452 4,648,789 25 17,338,120 12,925,175 34
--------- --------- -- ---------- ---------- --
Noninterest Income
Service fees
and charges 471,925 428,529 10% 1,370,769 1,255,994 9%
Bank card fees 277,375 241,511 15 820,635 682,877 20
Gain on sale of
loans, net 105,149 41,555 153 420,441 192,553 118
Loss on sale of
real estate
owned, net - - - - (3,488) -
Income from
bank-owned life
insurance 66,082 66,985 (1) 192,845 194,857 (1)
Other income 29,159 33,238 (12) 110,280 88,683 24
------ ------ ---- ------- ------ --
Total
noninterest
income 949,690 811,818 17 2,914,970 2,411,476 21
------- ------- -- --------- --------- --
Noninterest Expense
Compensation
and benefits 2,849,756 2,207,930 29% 7,788,637 6,455,640 21%
Occupancy 325,581 297,149 10 971,983 887,086 10
Marketing and
advertising 131,119 92,830 41 453,051 409,403 11
Data processing
And
communication 328,686 315,601 4 1,048,884 1,017,349 3
Professional
fees 267,118 69,422 285 729,053 235,169 210
Franchise and
shares taxes 226,250 - - 678,750 - -
Regulatory fees 155,559 41,672 273 490,725 112,998 334
Other expenses 384,392 328,304 17 1,155,912 895,376 29
------- ------- -- --------- ------- --
Total
Noninterest
expense 4,668,461 3,352,908 39 13,316,995 10,013,021 33
--------- --------- -- ---------- ---------- --
Income before
income tax
expense 2,071,681 2,107,699 (2) 6,936,095 5,323,630 30
Income tax
expense 574,244 715,524 (20) 2,278,120 1,808,941 26
------- ------- ---- --------- --------- --
Net income $1,497,437 $1,392,175 8% $4,657,975 $3,514,689 33%
========== ========== === ========== ========== ===
Earnings per
share - basic $0.18 N/A N/A $0.57 N/A N/A
===== ===== ===== ===== ===== =====
Earnings per
share - diluted $0.17 N/A N/A $0.56 N/A N/A
===== ===== ===== ===== ===== =====
HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
For The Three Months Ended For The Three
September 30, % Months Ended %
2009 2008 Change June 30, 2009 Change
---- ---- ------ ------------- ------
(dollars in thousands except per share data)
EARNINGS DATA
Total interest income $7,636 $6,897 11 $7,734 (1)%
Total interest expense 1,558 2,156 (28) 1,631 (4)
----- ----- -----
Net interest income 6,078 4,741 28 6,103 -
----- ----- -----
Provision for loan losses 287 92 210 248 16
Total noninterest income 949 812 17 1,006 (6)
Total noninterest expense 4,669 3,353 39 4,642 1
Income tax expense 574 716 (20) 782 (27)
--- --- ---
Net income $1,497 $1,392 8 $1,437 4
====== ====== ======
Earnings per share
- diluted $0.17 N/A N/A $0.18 (6)
===== ===== =====
AVERAGE BALANCE SHEET DATA
Total assets $529,462 $464,876 14% $533,715 (1)%
Total interest-earning
assets 499,469 437,562 14 502,987 (1)
Loans 343,618 319,242 8 343,798 -
Interest-bearing
deposits 307,660 296,485 4 305,156 1
Total deposits 373,430 359,210 4 375,188 -
Total shareholders'
equity 131,643 51,268 157 129,369 2
SELECTED RATIOS (1)
Return on average assets 1.13% 1.20% (6)% 1.08 5%
Return on average total
equity 4.55 10.86 (58) 4.44 2
Efficiency ratio (2) 66.43 60.38 10 65.29 2
Average shareholders'
equity to average
assets 24.86 11.03 125 24.24 3
Core capital ratio (3)(4) 19.86 10.57 88 19.79 -
Net interest margin (5) 4.83 4.31 12 4.87 (1)
September September June
30, 30, % 30, %
2009 2008 Change 2009 Change
---- ---- ------ ---- ------
CREDIT QUALITY (3)(6)
Nonaccrual loans $2,716 $552 392% $2,438 11%
Accruing loans past due
90 days and over - - - - -
--- --- ---
Total nonperforming loans 2,716 552 392 2,438 11
Other real estate owned - 86 - - -
--- -- ---
Total nonperforming
assets $2,716 $638 326 $2,438 11
====== ==== ======
Nonperforming assets to
total assets 0.51% 0.13% 292% 0.46% 11%
Nonperforming loans to
total assets 0.51 0.11 364 0.46 11
Nonperforming loans to
total loans 0.80 0.17 371 0.71 13
Allowance for loan losses
to nonperforming assets 120.5 374.7 (68) 123.9 (3)
Allowance for loan losses
to nonperforming loans 120.5 433.1 (72) 123.9 (3)
Allowance for loan losses
to total loans 0.96 0.75 28 0.88 9
Year-to-date loan
charge-offs $58 $123 (53)% $17 241%
Year-to-date loan recoveries 15 38 (61) 11 36
-- -- --
Year-to-date net loan
charge-offs 43 85 (49) 6 617
== == ==
Annualized YTD net loan
charge-offs to total
loans 0.02% 0.04% (50)% - -%
(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.
SOURCE: Home Bancorp, Inc.
Web site: http://www.home24bank.com/
