HOME BANCORP, INC. 
By 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.
December 31, December 31, Increase/
(Decrease)
(dollars in
thousands) 2012 2011 Amount Percent
----------- ---- ---- ------ -------
Real estate
loans:
One- to four-
family first
mortgage $177,816 $182,817 $(5,001) (3)%
Home equity
loans and lines 40,425 43,665 (3,240) (7)
Commercial real
estate 252,805 226,999 25,806 11
Construction and
land 75,529 78,994 (3,465) (4)
Multi-family
residential 19,659 20,125 (466) (2)
------ ------ ---- ---
Total real
estate loans 566,234 552,600 13,634 2
------- ------- ------ ---
Other loans:
Commercial and
industrial 72,253 82,980 (10,727) (13)
Consumer 34,641 30,791 3,850 13
------ ------ ----- ---
Total other
loans 106,894 113,771 (6,877) (6)
------- ------- ------ ---
Total loans $673,128 $666,371 $6,757 1%
======== ======== ====== ===
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.
December31, December31, Increase /
(Decrease)
(dollars
in
thousands) 2012 2011 Amount Percent
---------- ---- ---- ------ -------
Demand
deposit $152,462 $127,828 $24,634 19%
Savings 51,515 43,671 7,844 18
Money
market 191,191 180,790 10,401 6
NOW 123,294 93,679 29,615 32
Certificates
of
deposit 252,967 284,766 (31,799) (11)
------- ------- ------- ---
Total
deposits $771,429 $730,734 $40,695 6%
======== ======== ======= ===
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.
For the Three Months Ended
December 31, 2012 September 30, 2012 December 31, 2011
----------------- ------------------ -----------------
(dollars in thousands) Average Average Average Average Average Balance Average
Balance Yield/ Balance Yield/ Yield/
Rate Rate Rate
--------------------- -------- -------- -------- -------- --------------- --------
Interest-earning assets:
Loans receivable $673,428 6.28% $678,936 6.55% $662,429 6.21%
Investment securities 149,294 1.95 149,472 2.06 162,367 2.18
Other interest-earning
assets 41,057 0.43 41,373 0.40 26,026 0.56
------ ------ ------
Total interest-earning
assets 863,779 5.25 869,781 5.49 850,822 5.27
======= ======= =======
Interest-bearing
liabilities:
Deposits:
Savings, checking, and
money market 361,862 0.33 355,107 0.34 314,694 0.46
Certificates of deposit 257,750 1.04 269,840 1.08 284,169 1.16
------- ------- -------
Total interest-bearing
deposits 619,612 0.63 624,947 0.66 598,863 0.79
FHLB advances 40,796 1.58 48,175 1.39 103,011 0.75
------ ------ -------
Total interest-bearing
liabilities $660,408 0.68 $673,122 0.71 $701,874 0.79
======== ======== ========
Net interest spread 4.57% 4.78% 4.48%
Net interest margin 4.73% 4.94% 4.62%
------------------- ---- ---- ----
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
For the Years Ended
(dollars in thousands) December 31, 2012 December 31, 2011
--------------------- ----------------- -----------------
Reported noninterest
expense $32,454 $30,783
Less: Merger-related
expenses - (2,051)
-------------------- --- ------
Non-GAAP noninterest
expense $32,454 $28,732
==================== ======= =======
Reported net income $9,190 $5,120
Add: Merger-related
expenses (after tax) - 1,354
--------------------- --- -----
Non-GAAP net income $9,190 $6,474
=================== ====== ======
Diluted EPS $1.28 $0.72
Less: Merger-related
expenses - 0.18
-------------------- --- ----
Non-GAAP EPS $1.28 $0.90
============ ===== =====
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.
HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF FINANCIAL CONDITION
December 31, December 31, % September 30,
2012 2011 Change 2012
---- ---- ------ ----
Assets
Cash and cash
equivalents $39,539,366 $31,769,438 24% $52,307,703
Interest-bearing
deposits in banks 3,529,000 5,583,000 (37) 4,019,000
Investment securities
available for sale, at
fair value 157,255,828 155,259,978 1 153,006,535
Investment securities
held to maturity 1,665,184 3,461,717 (52) 2,049,718
Mortgage loans held for
sale 5,627,104 1,672,597 236 5,572,587
Loans covered by loss
sharing agreements 45,764,397 61,070,360 (25) 49,500,917
Noncovered loans, net of
unearned income 627,363,937 605,301,127 4 621,157,286
----------- ----------- -----------
Total loans 673,128,334 666,371,487 1 670,658,203
Allowance for loan
losses (5,319,235) (5,104,363) 4 (4,906,292)
---------- ---------- ----------
Total loans, net of
allowance for loan
losses 667,809,099 661,267,124 1 665,751,911
----------- ----------- -----------
FDIC loss sharing
receivable 15,545,893 24,222,190 (36) 16,813,909
Office properties and
equipment, net 30,777,184 31,763,692 (3) 30,910,746
Cash surrender value of
bank-owned life
insurance 17,286,434 16,771,174 3 17,157,946
Accrued interest
receivable and other
assets 23,891,172 32,018,228 (25) 26,720,243
---------- ---------- ----------
Total Assets $962,926,264 $963,789,138 - $974,310,298
============ ============ ============
Liabilities
Deposits $771,429,335 $730,733,755 6% $784,941,867
Federal Home Loan Bank
advances 46,256,805 93,622,954 (51) 43,440,343
Accrued interest payable
and other liabilities 3,666,264 5,147,595 (29) 5,717,129
--------- --------- ---------
Total Liabilities 821,352,404 829,504,304 (1) 834,099,339
----------- ----------- -----------
Shareholders' Equity
Common stock 89,506 89,335 - % 89,483
Additional paid-in
capital 90,986,820 89,741,406 1 90,513,760
Treasury stock (21,719,954) (15,892,315) 37 (20,365,995)
Common stock acquired by
benefit plans (7,455,669) (8,625,513) (14) (7,544,939)
Retained earnings 76,435,222 67,245,350 14 74,110,812
Accumulated other
comprehensive income 3,237,935 1,726,571 88 3,407,838
--------- --------- ---------
Total Shareholders'
Equity 141,573,860 134,284,834 5 140,210,959
----------- ----------- -----------
Total Liabilities and
Shareholders' Equity $962,926,264 $963,789,138 - $974,310,298
============ ============ ============
HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
For The Three Months Ended For The Years Ended
December 31, % December 31, %
2012 2011 Change 2012 2011 Change
---- ---- ------ ---- ---- ------
Interest Income
Loans, including fees $10,734,365 $10,450,022 3% $42,797,878 $34,604,712 24%
Investment securities 728,597 883,979 (18) 3,169,429 3,686,134 (14)
Other investments and
deposits 43,951 36,803 19 154,820 144,346 7
------ ------ ------- -------
Total interest income 11,506,913 11,370,804 1 46,122,127 38,435,192 20
---------- ---------- ---------- ----------
Interest Expense
Deposits 974,361 1,194,653 (18)% 4,227,495 4,626,198 (9)%
Federal Home Loan Bank
advances 160,787 194,407 (17) 686,374 590,972 16
------- ------- ------- -------
Total interest expense 1,135,148 1,389,060 (18) 4,913,869 5,217,170 (6)
--------- --------- --------- ---------
Net interest income 10,371,765 9,981,744 4 41,208,258 33,218,022 24
Provision for loan losses 483,251 567,968 (15) 2,411,214 1,460,427 65
------- ------- --------- ---------
Net interest income after
provision for loan
losses 9,888,514 9,413,776 5 38,797,044 31,757,595 22
--------- --------- ---------- ----------
Noninterest Income
Service fees and charges 495,372 538,368 (8)% 2,184,246 2,160,706 1%
Bank card fees 399,282 443,407 (10) 1,795,960 1,737,554 3
Gain on sale of loans,
net 567,804 520,493 9 1,963,365 910,165 116
Income from bank-owned
life insurance 128,487 142,561 (10) 515,260 578,529 (11)
Gain (loss) on the sale
of securities, net - (4,706) 100 221,781 (170,788) 230
Discount accretion of
FDIC loss sharing
receivable 119,087 187,799 (37) 580,980 851,080 (32)
Settlement of litigation - - - - 525,000 -
Other income 55,418 30,461 82 190,291 188,749 1
------ ------ ------- -------
Total noninterest income 1,765,450 1,858,383 (5) 7,451,883 6,780,995 10
--------- --------- --------- ---------
Noninterest Expense
Compensation and benefits 5,118,250 4,692,503 9% 19,687,444 17,821,501 10%
Occupancy 689,774 799,493 (14) 2,809,039 2,633,558 7
Marketing and advertising 205,051 312,733 (34) 743,814 980,557 (24)
Data processing and
communication 767,345 713,701 8 2,801,124 3,141,776 (11)
Professional fees 189,175 203,524 (7) 890,205 1,378,504 (35)
Forms, printing and
supplies 100,006 139,997 (29) 477,924 542,079 (12)
Franchise and shares tax (43,458) 93,783 (146) 613,733 675,801 (9)
Regulatory fees 224,673 169,375 33 854,041 857,990 -
Foreclosed assets, net 292,584 242,590 21 1,051,397 471,637 123
Other expenses 669,918 715,087 (6) 2,525,404 2,279,995 11
------- ------- --------- ---------
Total noninterest expense 8,213,318 8,082,786 2 32,454,125 30,783,398 5
--------- --------- ---------- ----------
Income before income tax
expense 3,440,646 3,189,373 8 13,794,802 7,755,192 78
Income tax expense 1,116,236 1,055,122 6 4,604,930 2,635,411 75
--------- --------- --------- ---------
Net income $2,324,410 $2,134,251 9 $9,189,872 $5,119,781 79
========== ========== ========== ==========
Earnings per share -
basic $0.34 $0.31 10% $1.33 $0.72 85%
===== ===== ===== =====
Earnings per share -
diluted $0.33 $0.30 10 $1.28 $0.71 80
===== ===== ===== =====
HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
For The Three Months Ended For The Three
December 31, % Months Ended %
2012 2011 Change September 30, 2012 Change
---- ---- ------ ------------------ ------
(dollars in
thousands except
per share data)
EARNINGS DATA
Total interest
income $11,507 $11,371 1% $12,120 (5)%
Total interest
expense 1,135 1,389 (18) 1,204 (6)
----- ----- -----
Net interest
income 10,372 9,982 4 10,916 (5)
------ ----- ------
Provision for loan
losses 483 568 (15) 56 763
Total noninterest
income 1,765 1,858 (5) 2,087 (15)
Total noninterest
expense 8,213 8,083 2 8,389 (2)
Income tax expense 1,116 1,055 6 1,506 (26)
----- ----- -----
Net income $2,325 $2,134 9 $3,052 (24)
====== ====== ======
AVERAGE BALANCE
SHEET DATA
Total assets $969,182 $965,357 - % $974,761 (1)%
Total interest-
earning assets 863,780 850,822 2 869,781 (1)
Totals loans 673,428 662,429 2 678,936 (1)
Total interest-
bearing deposits 619,612 598,863 3 624,947 (1)
Total interest-
bearing
liabilities 660,408 701,874 (6) 673,122 (2)
Total deposits 783,522 724,717 8 783,542 -
Total
shareholders'
equity 141,457 133,899 6 140,548 1
SELECTED RATIOS
(1)
Return on average
assets 0.96% 0.88% 9% 1.25% (23)%
Return on average
equity 6.57 6.38 3 8.69 (24)
Efficiency ratio
(2) 67.67 68.27 (1) 64.52 5
Average equity to
average assets 14.60 13.87 5 14.42 1
Tier 1 leverage
capital ratio(3) 13.67 12.53 9 13.23 3
Total risk-based
capital ratio(3) 21.83 21.13 3 21.39 2
Net interest
margin (4) 4.73 4.62 2 4.94 (4)
PER SHARE DATA
Basic earnings per
share $0.34 $.31 10% $0.44 (23)%
Diluted earnings
per share 0.33 0.30 10 0.42 (21)
Book value at
period end 19.03 17.30 10 18.66 2
Tangible book
value at period
end 18.73 16.96 10 18.35 2
PER SHARE DATA
Shares outstanding
at period end 7,439,127 7,759,954 (4)% 7,512,360 (1)%
Weighted average
shares
outstanding
Basic 6,778,450 6,882,206 (2)% 6,950,785 (2)%
Diluted 7,094,725 7,033,984 1 7,212,323 (2)
(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.
HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION
December 31, 2012 September 30, 2012 December 31, 2011
Covered Noncovered Total Covered Noncovered Total Covered Noncovered Total
------- ---------- ----- ------- ---------- ----- ------- ---------- -----
(dollars in thousands)
CREDIT QUALITY(1) (2)
Nonaccrual loans $9,579 $12,368 $21,947 $9,106 $12,608 $21,714 $10,460 $11,007 $21,467
Accruing loans past due 90 days and
over - - - - - - - - -
--- --- --- --- --- --- --- --- ---
Total nonperforming loans 9,579 12,368 21,947 9,106 12,608 21,714 10,460 11,007 21,467
Foreclosed assets 2,683 3,771 6,454 3,143 5,300 8,443 6,096 2,868 8,964
----- ----- ----- ----- ----- ----- ----- ----- -----
Total nonperforming assets 12,262 16,139 28,401 12,249 17,908 30,157 16,556 13,875 30,431
Performing troubled debt
restructurings 306 808 1,114 675 816 1,491 26 572 598
--- --- ----- --- --- ----- --- --- ---
Total nonperforming assets and
troubled debt restructurings
$12,568 $16,947 $29,515 $12,924 $18,724 $31,648 $16,582 $14,447 $31,029
======= ======= ======= ======= ======= ======= ======= ======= =======
Nonperforming assets to total assets 2.95% 3.10% 3.16%
Nonperforming loans to total assets 2.28 2.23 2.23
Nonperforming loans to total loans 3.26 3.24 3.22
Allowance for loan losses to
nonperforming assets 18.73 16.27 16.77
Allowance for loan losses to
nonperforming loans 24.24 22.60 23.78
Allowance for loan losses to total
loans 0.79 0.73 0.77
Year-to-date loan charge-offs $2,325 $2,151 $334
Year-to-date loan recoveries 129 25 58
--- --- ---
Year-to-date net loan charge-offs $2,196 $2,126 $276
====== ====== ====
Annualized YTD net loan charge-offs
to total loans 0.33% 0.42% 0.04%
(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".
SOURCE Home Bancorp, Inc.
