Investor Relations

LAFAYETTE, La., Jan. 29, 2013 /PRNewswire/ -- 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 $2.3 million for the fourth quarter of 2012, a decrease of $728,000, or 24%, compared to the third quarter of 2012 and an increase of $190,000, or 9%, compared to the fourth quarter of 2011.  Diluted earnings per share were $0.33 for the fourth quarter of 2012, a decrease of $0.09, or 21%, compared to the third quarter of 2012 and an increase of $0.03, or 10%, compared to the fourth quarter of 2011. 

Net income for the year ended December 31, 2012 was $9.2 million, an increase of $4.1 million, or 79%, compared to 2011.  Diluted earnings per share for 2012 were $1.28, an increase of 80% compared to $0.71 in 2011.  Excluding merger-related expenses of $2.1 million (pre-tax) incurred in 2011 due to the acquisition of GS Financial Corp. ("GSFC"), net income increased $2.7 million, or 42%, compared to 2011.  Excluding merger-related expenses, diluted earnings per share increased $0.38, or 42%, compared 2011.  

"In our first year without an acquisition since 2009, we focused our attention on enhancing our customers' experience and improving internal processes," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank.  "We're pleased with the progress we made in 2012, and expect to build on our momentum in 2013."

"Although we continue to face the challenges posed by the national economy, as well as other industry-wide factors which are not fully within our control, we greet 2013 with optimism," added Mr. Bordelon, "largely because, through their experience and hard work, the people and businesses of South Louisiana continue to press forward."

Loans and Credit Quality

Loans totaled $673.1 million at December 31, 2012, an increase of $2.5 million, or 0.4%, from September 30, 2012, and an increase of $6.8 million, or 1%, from December 31, 2011.  During the fourth quarter, increases in construction and land (up $12.2 million), one-to four-family first mortgage (up $3.1 million), commercial and industrial (up $1.5 million), and consumer (up $1.0 million) loan portfolios were largely offset by maturities and paydowns in the commercial real estate loan portfolio (down $15.9 million).   

The following table sets forth the composition of the Company's loan portfolio (including loans covered by loss sharing agreements) as of the dates indicated. 

Nonperforming assets ("NPAs"), which includes $12.3 million in assets covered under loss sharing agreements with the FDIC ("Covered Assets") and $11.2 million acquired from GSFC, totaled $28.4 million at December 31, 2012, a decrease of $1.8 million compared to September 30, 2012 and a decrease of $2.0 million compared to December 31, 2011.  The ratio of total NPAs to total assets was 2.95% at December 31, 2012, compared to 3.10% at September 30, 2012 and 3.16% at December 31, 2011.  Excluding acquired assets, the ratio of NPAs was 0.62% at December 31, 2012, compared to 0.86% at September 30, 2012 and 0.54% at December 31, 2011. 

The Company recorded net loan charge-offs of $70,000 during the fourth quarter of 2012, compared to net loan charge-offs of $464,000 in the third quarter of 2012 and net loan recoveries of $7,000 in the fourth quarter of 2011, respectively.  The Company's provision for loan losses for the fourth quarter of 2012 was $483,000, compared to $56,000 for the third quarter of 2012 and $568,000 for the fourth quarter of 2011.  The provision for loan losses in the fourth quarter of 2012 relates primarily to modest downgrades of certain loans in the Company's organic loan portfolio and decreased cash flow expectations in the acquired GSFC one- to four-family first mortgage portfolio. 

The ratio of allowance for loan losses to total loans was 0.79% at December 31, 2012, compared to 0.73% and 0.77% at September 30, 2012 and December 31, 2011, respectively.  Excluding acquired loans, the ratio of the allowance for loan losses to total loans was 1.01% at December 31, 2012, compared to 1.01% at September 30, 2012 and 1.14% at December 31, 2011.           

Investment Securities Portfolio

The Company's investment securities portfolio totaled $158.9 million at December 31, 2012, an increase of $3.9 million, or 3%, from September 30, 2012, and an increase of $199,000, or 0.1%, from December 31, 2011.  At December 31, 2012, the Company had a net unrealized gain position on its investment securities portfolio of $5.0 million, compared to net unrealized gains of $5.2 million and $2.6 million at September 30, 2012 and December 31, 2011, respectively.  At December 31, 2012, the investment securities portfolio had a modified duration of 3.7 years.

Deposits

At December 31, 2012, core deposits (i.e., checking, savings and money market accounts) decreased $2.7 million, or 1%, from September 30, 2012, and increased $72.5 million, or 16.3%, from December 31, 2011.  Total deposits were $771.4 million at December 31, 2012, a decrease of $13.5 million, or 2%, from September 30, 2012, and an increase of $40.7 million, or 6%, from December 31, 2011.       

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

Share Repurchases

The Company purchased 75,533 shares of its common stock during the fourth quarter of 2012 at an average price per share of $17.93 under the share repurchase plan announced in July 2012.  The Company may repurchase up to 383,598 shares, or approximately 5%, of the Company's outstanding common stock under the July 2012 plan.  As of January 23, 2013, the Company has purchased 239,662 shares under the plan at an average price per share of $17.37; hence, an additional 143,936 shares remain eligible for purchase under the plan.  The tangible book value per share of the Company's common stock was $18.73 at December 31, 2012.     

Net Interest Income

Net interest income for the fourth quarter of 2012 totaled $10.4 million, a decrease of $544,000, or 5%, compared to the third quarter of 2012, and an increase of $390,000, or 4%, compared to the fourth quarter of 2011.  The decline in net interest income in the fourth quarter of 2012 compared to the third quarter of 2012 was due largely to a decline in loan interest income.  The decrease in loan interest income resulted primarily from lower levels of interest accretion in the acquired loan portfolios, less loan fee accretion and lower average loan balances. 

The Company's net interest margin was 4.73% for the fourth quarter of 2012, 21 basis points lower than the third quarter of 2012 and 11 basis points higher than the fourth quarter of 2011.  The decrease in the net interest margin compared to the third quarter of 2012 related primarily to lower loan yields as described above.  The increase in net interest margin compared to the fourth quarter of 2011 related primarily to lower costs on interest bearing liabilities.  

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 fourth quarter of 2012 totaled $1.8 million, a decrease of $321,000, or 15%, compared to the third quarter of 2012 and a decrease of $93,000, or 5%, compared to the fourth quarter of 2011.  The decrease in noninterest income in the fourth quarter of 2012 compared to the third quarter of 2012 resulted primarily from the absence of gains on sale of securities of $163,000 recorded during the third quarter and decreases in gains on the sale of mortgage loans, service fees and charges and bank card fees. 

The decrease in noninterest income in the fourth quarter of 2012 compared to the fourth quarter of 2011 resulted primarily from decreases in discount accretion on FDIC loss sharing receivable, service fees and charges and bank card fees offset by higher gains on the sale of mortgage loans.    

Noninterest Expense

Noninterest expense for the fourth quarter of 2012 totaled $8.2 million, a decrease of $176,000, or 2%, compared to the third quarter of 2012 and an increase of $131,000, or 2%, compared to the fourth quarter of 2011.  The decrease in noninterest expense in the fourth quarter of 2012 compared to the third quarter of 2012 resulted primarily from lower than anticipated Louisiana shares tax payments (down $349,000), which was partially offset by higher data processing and communication (up $73,000), compensation and benefits (up $71,000), and foreclosed asset expenses (up $44,000). 

Non-GAAP Reconciliation

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 acquired loans and the impact of merger-related expenses. Management believes the presentation of this non-GAAP financial information provides useful information that is essential to a proper understanding of the Company's financial position and core operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial information presented by other companies. 

This news release contains certain forward‑looking statements. Forward‑looking 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, 2011, 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 forward‑looking statements are made or to reflect the occurrence of unanticipated events.

SOURCE Home Bancorp, Inc.