Home Bancorp Announces 2014 Third Quarter Results

LAFAYETTE, La., Oct. 28, 2014 /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 $2.9 million for the third quarter of 2014, an increase of $124,000, or 5%, compared to the second quarter of 2014 and an increase of $394,000, or 16%, compared to the third quarter of 2013.  Diluted earnings per share were $0.41 for the third quarter of 2014, an increase of $0.01, or 3% from the second quarter of 2014 and an increase of $0.04, or 11%, compared to the third quarter of 2013. 

Home Bank Logo

"Although asset growth was tempered during the quarter, we continue to be pleased with our prospects for additional customer growth," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "Our bankers are keenly focused on differentiating Home Bank by adding value in our customers' businesses and personal finances."

Loans and Credit Quality

Loans totaled $907.4 million at September 30, 2014, a decrease of $249,000 from June 30, 2014, and an increase of $226.5 million, or 33%, from September 30, 2013. The increase in loans outstanding at September 30, 2014 compared to September 30, 2013, primarily reflects our acquisition of Britton & Koontz Capital Corporation ("Britton & Koontz") and its wholly owned subsidiary, Britton & Koontz Bank, N.A. (Britton & Koontz Bank"), in February 2014.  We acquired $298.7 million of total assets from Britton & Koontz, including $162.2 million of loans. During the third quarter of 2014, the decrease in our loan portfolio related primarily to commercial real estate (down $4.2 million), commercial and industrial loans (down $1.2 million) and home equity loans (down $925,000), which were offset by one- to four-family first mortgage (up $3.9 million), consumer (up $1.3 million) and construction and land loans (up $695,000).

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










September 30,


December 31,


Increase/(Decrease)


(dollars in thousands)


2014


2013


Amount

Percent


Real estate loans:









     One- to four-family first mortgage

$

234,316

$

179,506

$

54,810

31

%

     Home equity loans and lines


56,208


40,561


15,647

39


     Commercial real estate


329,621


269,849


59,772

22


     Construction and land


123,253


83,271


39,982

48


     Multi-family residential


22,465


16,578


5,887

36


        Total real estate loans


765,863


589,765


176,098

30


Other loans:









     Commercial and industrial


95,535


77,533


18,002

23


     Consumer


45,966


40,158


5,808

14


        Total other loans


141,501


117,691


23,810

20


        Total loans

$

907,364

$

707,456

$

199,908

28

%

Nonperforming assets ("NPAs") totaled $22.6 million at September 30, 2014, a decrease of $4.0 million compared to June 30, 2014 and a decrease of $4.9 million compared to September 30, 2013.  $18.0 million of the $22.6 million in NPAs at September 30, 2014 relates to our acquisitions of Statewide Bank, GS Financial Corp. and Britton & Koontz.  The ratio of our total NPAs to total assets was 1.79% at September 30, 2014, compared to 2.11% at June 30, 2014 and 2.85% at September 30, 2013.  Excluding acquired assets, the ratio of NPAs was 0.44% at September 30, 2014, compared to 0.45% at June 30, 2014 and 0.69% at September 30, 2013. 

The Company recorded net loan charge-offs of $1.2 million during the third quarter of 2014, compared to net loan charge-offs of $157,000 in the second quarter of 2014 and $84,000 in the third quarter of 2013, respectively.  The Company's provision for loan losses for the third quarter of 2014 was $892,000, compared to $811,000 for the second quarter of 2014 and $453,000 for the third quarter of 2013.  The increase in net loan charge-offs for the third quarter of 2014 resulted primarily from deterioration in a single commercial and industrial loan relationship.

The ratio of allowance for loan losses to total loans was 0.82% at September 30, 2014, compared to 0.85% and 0.95% at June 30, 2014 and September 30, 2013, respectively.  Excluding acquired loans, the ratio of the allowance for loan losses to total loans was 1.01% at September 30, 2014, compared to 1.10% and 1.09% at June 30, 2014 and September 30, 2013, respectively.       

Investment Securities Portfolio

The Company's investment securities portfolio totaled $192.5 million at September 30, 2014, an increase of $2.3 million, or 1%, from June 30, 2014, and an increase of $32.0 million, or 20%, from September 30, 2013. The increase compared to September 30, 2013 resulted primarily from the addition of securities acquired from Britton & Koontz.  At September 30, 2014, the Company had a net unrealized gain position on its investment securities portfolio of $1.4 million, compared to net unrealized gains of $1.8 million and $1.1 million at June 30, 2014 and September 30, 2013, respectively.  The Company's investment securities portfolio had a modified duration of 3.8 years at September 30, 2014, compared to 4.2 and 4.7 years at December 31, 2013 and September 30, 2013, respectively.  

Deposits

Total deposits were $983.4 million at September 30, 2014, an increase of $1.6 million, or 0.2%, from June 30, 2014, and an increase of $217.6 million, or 28%, from September 30, 2013.   The acquisition of Britton & Koontz added $216.6 million in deposits.  During the third quarter of 2014, core deposits (i.e., checking, savings and money market accounts) increased $15.1 million, or 2%, from June 30, 2014, and increased $202.6 million, or 36%, from September 30, 2013.  Core deposits acquired from Britton & Koontz totaled $151.9 million at acquisition date.         

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










September 30,


December 31,


Increase / (Decrease)


(dollars in thousands)


2014


2013


Amount

Percent


Demand deposit

$

249,312

$

174,475

$

74,837

43

%

Savings


79,870


56,694


23,176

41


Money market


224,721


192,303


32,418

17


NOW


205,182


125,391


79,791

64


Certificates of deposit


224,302


192,449


31,853

17


        Total deposits

$

983,387

$

741,312

$

242,075

33

%










Net Interest Income

Net interest income for the third quarter of 2014 totaled $13.2 million, an increase of $111,000, or 1%, compared to the second quarter of 2014, and an increase of $2.8 million, or 27%, compared to the third quarter of 2013.  The impact of the addition of Britton & Koontz's earning assets accounted for the majority of the increase from third quarter 2013 to third quarter 2014. The Company's net interest margin was 4.63% for the third quarter of 2014, one basis point lower than the second quarter of 2014 and 16 basis points lower than the third quarter of 2013.  The decrease in the net interest margin in the third quarter 2014 compared to the third quarter 2013 was primarily the result of the impact of Britton & Koontz's interest-earning assets and interest-bearing liabilities.  The Covered Loan portfolio yielded 16.22% during the third quarter of 2014, compared to 17.17% and 15.60% during the second quarter of 2014 and third quarter of 2013, respectively.      

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.  Taxable equivalent ("TE") yields on investment securities are calculated using a marginal tax rate of 35%.



For the Three Months Ended



September 30, 2014


June 30, 2014


September 30, 2013

(dollars in thousands)


Average Balance

Average Yield/Rate


Average Balance

Average Yield/Rate


Average Balance

Average Yield/Rate

Interest-earning assets:













Loans receivable

$

904,216

5.70

%

$

898,123

5.72

%

$

676,639

6.07

%

Investment securities (TE)


187,201

2.20



191,732

2.22



157,352

2.10


Other interest-earning assets


40,094

0.41



40,828

0.46



27,293

0.47


Total interest-earning assets


1,131,511

4.93



1,130,683

4.94



861,284

5.17















Interest-bearing liabilities:













Deposits:













Savings, checking, and money market


505,458

0.23



493,892

0.23



389,773

0.24


Certificates of deposit


228,446

0.73



241,107

0.70



215,745

0.90


Total interest-bearing deposits


733,904

0.39



734,999

0.38



605,518

0.48


Securities sold repurchase agreement


20,643

0.36



20,819

0.36



-

-


FHLB advances


92,324

0.51



96,169

0.48



41,083

0.90


Total interest-bearing liabilities

$

846,871

0.40


$

851,987

0.39


$

646,601

0.51















Net interest spread (TE)



4.53

%



4.55

%



4.66

%

Net interest margin (TE)



4.63

%



4.64

%



4.79

%














Noninterest Income

Noninterest income for the third quarter of 2014 totaled $2.2 million, a decrease of $92,000, or 4%, compared to the second quarter of 2014 and an increase of $380,000, or 21%, compared to the third quarter of 2013.  The decrease in noninterest income in the third quarter of 2014 compared to the second quarter of 2014 resulted primarily from lower gains on the sale of mortgage loans (down $130,000), which was partially offset by increases in service fees and charges (up $31,000).

The increase in noninterest income in the third quarter of 2014 compared to the third quarter of 2013 resulted primarily from increases in service fees and charges (up $266,000) and bank card fees (up $130,000) due primarily to the Britton & Koontz acquisition and increased customer transactions.

Noninterest Expense

Noninterest expense for the third quarter of 2014 totaled $10.0 million, a decrease of $402,000, or 4%, compared to the second quarter of 2014 and an increase of $2.0 million, or 25%, compared to the third quarter of 2013. The decrease in noninterest expense in the third quarter of 2014 compared to the second quarter of 2014 resulted primarily from lower expenses on foreclosed assets (down $227,000), other expense (down $143,000 primarily from the absence of contract cancellation expense from the Britton & Koontz acquisition) and data processing and communications (down $96,000), which were partially offset by increases in compensation and benefits (up $73,000).

The increase in noninterest expense for the third quarter of 2014 compared to the third quarter of 2013 primarily relates to the growth of the Company's branch network due to the addition of Britton & Koontz branches and employees.

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. 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, 2013, 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.

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF FINANCIAL CONDITION






















September 30,


September 30,


%



June 30,

December 31,


2014


2013


Change



2014

2013

Assets










Cash and cash equivalents

$      54,620,690


$   35,953,034


52

%


$      56,326,293

$   32,638,900

Interest-bearing deposits in banks

5,771,000


3,185,000


81



5,771,000

2,940,000

Investment securities available for sale, at fair value

181,238,080


151,453,721


20



179,201,896

149,632,153

Investment securities held to maturity

11,211,745


8,965,112


25



10,983,829

9,404,790

Mortgage loans held for sale

7,397,081


1,711,585


332



5,700,222

1,951,345

Loans covered by loss sharing agreements

18,492,286


23,723,936


(22)



19,335,355

21,673,808

Noncovered loans, net of unearned income

888,872,055


657,150,445


35



888,277,680

685,782,309

     Total loans

907,364,341


680,874,381


33



907,613,035

707,456,117

Allowance for loan losses

(7,418,243)


(6,462,841)


15



(7,757,944)

(6,918,009)

     Total loans, net of allowance for loan losses

899,946,098


674,411,540


33



899,855,091

700,538,108

FDIC loss sharing receivable

6,449,226


13,576,606


(53)



8,142,745

12,698,077

Office properties and equipment, net

38,217,660


30,312,996


26



37,538,630

30,702,635

Cash surrender value of bank-owned life insurance

19,047,294


17,638,008


8



18,930,780

17,750,604

Accrued interest receivable and other assets

35,847,211


24,688,760


45



36,558,809

25,984,346

Total Assets

$  1,259,746,085


$ 961,896,362


31



$  1,259,009,295

$ 984,240,958





















Liabilities










Deposits

$    983,386,883


$ 765,810,312


28

%


$    981,740,632

$ 741,312,416

Securities sold under repurchase agreement

20,540,654


-


-



20,710,415

-

Federal Home Loan Bank advances

95,000,875


50,900,000


87



102,531,304

97,000,000

Accrued interest payable and other liabilities

9,699,673


4,965,371


95



5,951,205

4,019,013

Total Liabilities

1,108,628,085


821,675,683


35



1,110,933,556

842,331,429











Shareholders' Equity










Common stock

89,968


89,579


-

%


89,771

89,585

Additional paid-in capital

93,025,616


91,743,191


1



92,667,831

92,192,410

Treasury stock

(28,502,198)


(28,003,896)


2



(28,448,439)

(28,011,398)

Common stock acquired by benefit plans

(5,223,134)


(6,376,957)


(18)



(5,333,648)

(6,285,327)

Retained earnings 

90,791,742


82,023,494


11



87,915,224

83,729,144

Accumulated other comprehensive income 

936,006


745,268


26



1,185,000

195,115

Total Shareholders' Equity

151,118,000


140,220,679


8



148,075,739

141,909,529

Total Liabilities and Shareholders' Equity

$  1,259,746,085


$ 961,896,362


31



$  1,259,009,295

$ 984,240,958

 

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME


























 For The Three Months Ended 





 For The Nine Months Ended 





 September 30, 

%



 September 30, 


%



2014

2013


Change



2014

2013


Change


Interest Income












Loans, including fees

$      13,090,209

$        10,438,505


25

%


$ 37,497,393

$ 30,578,885


23

%

Investment securities

936,379

754,902


24



2,957,544

2,278,112


30


Other investments and deposits

41,723

32,471


29



119,403

96,077


24


Total interest income

14,068,311

11,225,878


25



40,574,340

32,953,074


23














Interest Expense












Deposits

718,367

729,941


(2)

%


2,044,983

2,410,621


(15)

%

Securities sold under repurchase agreements

18,838

-


-



54,147

-


-


Federal Home Loan Bank advances

118,522

92,610


28



350,003

358,806


(3)


Total interest expense

855,727

822,551


4



2,449,133

2,769,427


(12)


Net interest income

13,212,584

10,403,327


27



38,125,207

30,183,647


26


Provision for loan losses

891,989

453,133


97



1,847,958

3,221,326


(43)


Net interest income after provision for loan losses

12,320,595

9,950,194


24



36,277,249

26,962,321


35














Noninterest Income












Service fees and charges

1,008,416

741,983


36

%


2,781,487

1,984,049


40

%

Bank card fees

576,105

445,784


29



1,601,221

1,314,299


22


Gain on sale of loans, net

308,708

314,626


(2)



909,173

1,289,487


(30)


Income from bank-owned life insurance

116,513

114,473


2



342,347

351,575


(3)


Gain on the sale of securities, net

-

-


-



1,826

428,200


(100)


Discount accretion of FDIC loss sharing receivable

54,873

111,066


(51)



205,749

334,913


(39)


Other income

96,000

52,215


84



226,938

170,351


33


Total noninterest income

2,160,615

1,780,147


21



6,068,741

5,872,874


3














Noninterest Expense












Compensation and benefits

5,785,428

5,017,628


15

%


18,292,578

14,993,975


22

%

Occupancy

1,213,874

914,187


33



3,419,434

2,642,463


29


Marketing and advertising

244,364

152,270


61



695,823

563,793


23


Data processing and communication

964,541

574,364


68



3,396,596

1,842,036


84


Professional fees

210,459

217,657


(3)



925,961

623,909


48


Forms, printing and supplies

135,840

86,965


56



499,060

329,762


51


Franchise and shares tax

184,385

272,960


(32)



553,156

819,540


(33)


Regulatory fees

306,724

225,175


36



790,763

668,059


18


Foreclosed assets, net

91,836

90,982


1



772,972

236,740


227


Other expenses

830,629

451,767


84



2,248,952

1,710,201


32


Total noninterest expense

9,968,080

8,003,955


25



31,595,295

24,430,478


29


Income before income tax expense

4,513,130

3,726,386


21



10,750,695

8,404,717


28


Income tax expense

1,636,613

1,243,639


32



3,688,098

2,816,445


31


Net income

$      2,876,517

$        2,482,747


16



$  7,062,597

$  5,588,272


26














Earnings per share - basic

$               0.44

$                 0.38


16

%


$           1.08

$           0.84


29

%

Earnings per share - diluted

$               0.41

$                 0.37


11



$           1.02

$           0.80


28


 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION




























 For The Three Months Ended 





 For The Three  






 September 30, 


%



 Months Ended 



%



2014


2013


 Change 



 June 30, 2014 



 Change 


(dollars in thousands except per share data)













EARNINGS DATA













Total interest income

$     14,068


$   11,226


25

%


$            13,940



1

%

Total interest expense

856


823


4



839



2


Net interest income

13,212


10,403


27



13,101



1


Provision for loan losses

892


453


97



811



10


Total noninterest income

2,161


1,780


21



2,252



(4)


Total noninterest expense

9,968


8,004


25



10,370



(4)


Income tax expense

1,636


1,243


32



1,420



15


Net income

$       2,877


$     2,483


16



$              2,752



5















AVERAGE BALANCE SHEET DATA













Total assets

$ 1,242,370


$958,560


30

%


$        1,246,300



(0)

%

Total interest-earning assets

1,131,511


861,284


31



1,130,683



0


Totals loans

904,216


676,639


34



898,123



1


Total interest-bearing deposits

733,904


605,518


21



734,999



(0)


Total interest-bearing liabilities

846,871


646,601


31



851,987



(1)


Total deposits

979,711


776,556


26



982,371



(0)


Total shareholders' equity

150,087


139,060


8



146,807



2















SELECTED RATIOS (1)













Return on average assets

0.93

%

1.04

%

(11)

%


0.88

%


6

%

Return on average equity

7.67


7.14


7



7.50



2


Efficiency ratio (2)

64.84


65.70


(1)



67.54



(4)


Average equity to average assets

12.08


14.51


(17)



11.78



3


Tier 1 leverage capital ratio(3) 

11.34


14.29


(21)



11.11



2


Total risk-based capital ratio(3) 

17.53


22.33


(22)



17.20



2


Net interest margin (4)

4.63


4.79


(3)



4.64



(0)















PER SHARE DATA













Basic earnings per share

$        0.44


$      0.38


16

%


$               0.42



5

%

Diluted earnings per share

0.41


0.37


11



0.40



3


Book value at period end

21.23


19.75


8



20.86



2


Tangible book value at period end

20.57


19.47


6



20.20



2















PER SHARE DATA













Shares outstanding at period end

7,114,516


7,099,164


0

%


7,097,270



0

%

Weighted average shares outstanding













   Basic

6,577,378


6,481,911


2

%


6,532,620



1

%

   Diluted

6,950,916


6,768,578


3



6,903,323



1





















(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) 

Capital ratios are end of period ratios for the Bank only.

(4) 

Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 35%.


 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY CREDIT QUALITY INFORMATION












































September 30, 2014


June 30, 2014


September 30, 2013


Covered

Noncovered

Total


Covered

Noncovered

Total


Covered

Noncovered

Total

(dollars in thousands)





















CREDIT QUALITY(1)  (2)





















Nonaccrual loans

$ 3,432


$ 11,785


$ 15,217



$ 4,376


$ 15,222


$ 19,598



$ 5,807


$ 15,784


$ 21,591


Accruing loans past due 90 days and over

-


-


-



-


-


-



-


-


-


Total nonperforming loans

3,432


11,785


15,217



4,376


15,222


19,598



5,807


15,784


21,591


Foreclosed assets

2,195


5,151


7,346



2,677


4,255


6,932



3,064


2,786


5,850


Total nonperforming assets

5,627


16,936


22,563



7,053


19,477


26,530



8,871


18,570


27,441


Performing troubled debt restructurings

3


732


735



3


212


215



6


437


443


Total nonperforming assets and troubled 





















debt restructurings

$ 5,630


$ 17,668


$ 23,298



$ 7,056


$ 19,689


$ 26,745



$ 8,877


$ 19,007


$ 27,884























Nonperforming assets to total assets





1.79

%






2.11

%






2.85

%

Nonperforming loans to total assets 





1.21







1.56







2.24


Nonperforming loans to total loans 





1.68







2.16







3.17


Allowance for loan losses to nonperforming assets





32.88







29.24







23.55


Allowance for loan losses to nonperforming loans





48.75







39.58







29.93


Allowance for loan losses to total loans





0.82







0.85







0.95























Year-to-date loan charge-offs





$  1,434







$     197







$  2,135


Year-to-date loan recoveries





86







81







58


Year-to-date net loan charge-offs (recoveries)





$  1,348







$     116







$  2,077


Annualized YTD net loan charge-offs to total loans





0.20

%






0.03

%






0.41

%
















































(1) 

Nonperforming loans consist of nonaccruing loans and accruing 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 loans 90 days or more past due. Repossessed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure.

(2) 

Asset quality information includes assets covered under FDIC loss sharing agreements. Such assets covered by FDIC loss sharing agreements are referred to as "Covered" assets.
All other assets are referred to as "Noncovered".

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SOURCE Home Bancorp, Inc.

For further information: John W. Bordelon, President and CEO (337) 237-1960