Investor Relations

In the news release, Home Bancorp Announces 2010 First Quarter Results, issued 04-May-2010 by Home Bancorp, Inc. over PR Newswire, we are advised by the company that the numbers in the "SUMMARY FINANCIAL INFORMATION" table, "Book value at period end" row, have changed. Please see complete corrected version that follows:

LAFAYETTE, La., May 4 /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 $845,000 for the first quarter of 2010, an increase of $824,000 compared to the fourth quarter of 2009 and a decrease of $878,000 compared to the first quarter of 2009.  Diluted earnings per share were $0.11 for the first quarter of 2010, compared to $0.00 and $0.21 for the fourth and first quarters of 2009, respectively.  The first quarter of 2010 includes acquisition-related costs (pre-tax) of $357,000 related to Home Bank's acquisition of Statewide Bank.  The Company's results include the impact of the acquired assets and assumed liabilities of Statewide Bank since the March 12, 2010 acquisition date.  

"This is a time of incredible growth and opportunity for our company," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank.  "During the first quarter, we completed the FDIC-assisted acquisition of Statewide Bank and opened our Baton Rouge headquarters."

"The newest members of the Home Bank family, our Northshore team, have done a tremendous job serving our new customers in Covington, Madisonville, Mandeville, Abita Springs, Slidell and Folsom," continued Mr. Bordelon.  "We are confident that our ability to develop meaningful relationships with our customers will set us apart from our Northshore competitors."  

"The commitment and dedication displayed by our Acadiana, Baton Rouge and Northshore teams in executing the Statewide acquisition and opening our Baton Rouge headquarters has been tremendous," added Mr. Bordelon.  "We are very fortunate to work with such an inspired group of colleagues."

Acquisition of Statewide Bank

On March 12, 2010, Home Bank entered into a purchase and assumption agreement with the Federal Deposit Insurance Corporation ("FDIC") to purchase certain assets and to assume deposits and certain other liabilities of Statewide Bank, a full service community bank formerly headquartered in Covington, Louisiana.  As a result of the transaction (prior to fair value adjustments), the Company acquired $199.2 million of assets, including loans of $157.0 million and $222.6 million in deposits and other liabilities.  

In connection with the acquisition, Home Bank entered into loss sharing agreements with the FDIC which cover the acquired loan portfolio ("Covered Loans") and other repossessed assets (collectively referred to as "Covered Assets").  Under the terms of the loss share agreements, the FDIC will absorb 80% of the first $41 million of losses incurred on Covered Assets and 95% of losses on Covered Assets exceeding $41 million.  

The assets and liabilities from Statewide Bank were recorded at their estimated fair values as of the March 12, 2010 acquisition date.  Such fair values are preliminary estimates and are subject to adjustment for up to one year after the acquisition date. A summary of the assets and liabilities acquired and estimated fair value adjustments follows.  

 Baton Rouge Expansion

The Company opened its third full-service Baton Rouge location in March 2010.  The 6,400-square foot facility, located on Corporate Boulevard, will serve as Home Bank's Baton Rouge headquarters.  Commercial Market Manager Robert Lott and the commercial lending team will anchor the branch, along with mortgage origination, cash management services and retail banking.

Loans and Credit Quality

Loans totaled $450.3 million at March 31, 2010, an increase of $113.7 million, or 34%, from December 31, 2009, and an increase of $113.9 million, or 34%, from March 31, 2009.  The increase during the first quarter includes Covered Loans acquired from Statewide Bank, which totaled $108.1 million at March 31, 2010.  Organic loan growth totaled $5.6 million during the first quarter of 2010.  Such growth was concentrated in the commercial real estate and construction and land portfolios.  

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

Nonperforming assets, excluding Covered Assets, were $1.9 million at March 31, 2010, an increase of $198,000, or 8%, from December 31, 2009, and a decrease of $632,000, or 33%, from March 31, 2009.  The ratio of nonperforming assets, excluding Covered Assets, to total assets was 0.27% at March 31, 2010, compared to 0.32% at December 31, 2009 and 0.47% at March 31, 2009.  At March 31, 2010, total nonperforming assets, including Covered Assets of $18.3 million, were $20.2 million.  The ratio of total nonperforming assets to total assets was 2.90% at March 31, 2010.

The Company recorded net charge-offs of $21,000 during the first quarter of 2010, compared to net charge-offs of $76,000 in the fourth quarter of 2009 and net recoveries of $1,000 in the first quarter of 2009. The Company's loan loss provision for the first quarter of 2010 was $350,000, compared to $156,000 and $174,000 for the fourth quarter of 2009 and the first quarter of 2009, respectively.  The increase in the loan loss provision during the first quarter of 2010 resulted primarily from the downgrade of two loan relationships in the Lafayette market.  

At March 31, 2010, the Company's ratio of loan loss reserves to total non-covered loans was 1.08%, compared to 1.00% and 0.83% at December 31, 2009 and March 31, 2009, respectively.  

Investment Securities Portfolio

The Company's investment securities portfolio totaled $138.2 million at March 31, 2010, increases of $18.4 million, or 15%, from December 31, 2009, and $22.0 million, or 19%, from March 31, 2009.  The increase in investment securities was the result of the addition of $25.0 million of U.S. agency mortgage-backed securities acquired from Statewide Bank.  At March 31, 2010, the Company had an unrealized loss position on its investment securities portfolio of $191,000, compared to net unrealized losses of $133,000 and $7.2 million at December 31, 2009 and March 31, 2009, respectively. The unrealized loss relates primarily to the Company's non-agency mortgage-backed securities holdings, which totaled $36.9 million at March 31, 2010, down from $39.7 million at December 31, 2009.  Due to increasing delinquencies and defaults in the mortgage loans underlying certain non-agency mortgage-backed securities, the Company recorded an other-than-temporary impairment ("OTTI") charge of $1.9 million during the fourth quarter of 2009.

The following table summarizes the Company's non-agency mortgage-backed securities portfolio as of March 31, 2010 (in thousands).

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.

Deposits

Deposits totaled $539.9 million at March 31, 2010, an increase of $168.3 million, or 45%, from December 31, 2009, and an increase of $164.8 million, or 44%, from March 31, 2009.  The acquisition of Statewide Bank added $206.9 million in deposits during the quarter, including approximately $46.2 million of higher-cost, out-of-state brokered deposits which the Company elected to re-price.  Consistent with management's expectations, the vast majority of out-of-state depositors elected to withdraw their deposits.  The Company's organic core deposit growth during the first quarter of 2010 totaled $6.7 million.

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

Net Interest Income

Net interest income for the first quarter of 2010 totaled $5.9 million, an increase of $352,000, or 6%, compared to the fourth quarter of 2009, and a decrease of $3,000, or 0.1%, compared to the first quarter of 2009.  The Company's net interest margin was 4.69% for the first quarter of 2010, 29 basis points higher than the fourth quarter of 2009 and 7 basis points lower than the first quarter of 2009.  

The following table sets forth the Company's average volume and rate of its interest-earning assets and interest-bearing liabilities for the periods indicated.

Noninterest Income

Noninterest income for the first quarter of 2010 totaled $997,000, an increase of $1.8 million, or 223%, compared to the fourth quarter of 2009 and an increase of $38,000, or 4%, compared to the first quarter of 2009.  Excluding the impact of the OTTI charge of $1.9 million in the fourth quarter of 2009, first quarter 2010 noninterest income decreased $79,000, or 7%, compared to the fourth quarter of 2009.  The decrease from the fourth quarter of 2009 resulted primarily from lower gains on the sale of mortgage loans.  The increase from the first quarter of 2009 resulted from an increase in income on bank-owned life insurance, which was partially offset by a decrease in gain on sale of loans.

Noninterest Expense

Noninterest expense for the first quarter of 2010 totaled $5.2 million, an increase of $755,000, or 17%, compared to the fourth quarter of 2009 and an increase of $1.2 million, or 31%, compared the first quarter of 2009.  Excluding the impact of $357,000 in acquisition-related costs incurred in the first quarter of 2010, noninterest expense for the first quarter of 2010 increased $398,000, or 9%, and $881,000, or 22%, compared to the quarters ended December 31, 2009 and March 31, 2009, respectively.  The primary reason for the increase in noninterest expense during the first quarter of 2010 was higher compensation and benefits expense.  Compensation and benefits expense increased primarily due to hiring staff for our Baton Rouge headquarters location in the first quarter of 2010, in addition to increased stock-based compensation expenses.  Stock-based compensation expenses increased due to award grants under the Company's stock option and recognition and retention plans approved by the Company's shareholders in May 2009.  Additionally, regulatory fees increased during the quarter ended March 31, 2010 compared to the same quarter a year ago as a result of an increase in base insurance premium assessments on deposits by the FDIC.  

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 acquisition-related charges and charges for the other-than-temporary impairment of investment securities.  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.

SOURCE Home Bancorp, Inc.