Home Bancorp Announces 2013 Third Quarter Results

              Home Bancorp Announces 2013 Third Quarter Results

PR Newswire

LAFAYETTE, La., Oct. 29, 2013

LAFAYETTE, La., Oct. 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 $2.5 million for
the third quarter of 2013, an increase of $1.2 million, or 100%, compared to
the second quarter of 2013 and a decrease of $570,000, or 19%, compared to the
third quarter of 2012. Diluted earnings per share were $0.37 for the third
quarter of 2013, an increase of $0.19, or 106%, compared to the second quarter
of 2013 and a decrease of $0.05, or 12%, compared to the third quarter of
2012.

(Logo: http://photos.prnewswire.com/prnh/20130429/MM04092LOGO)

"The performance of the South Louisiana economy continues to outpace much of
the nation," stated John W. Bordelon, President and Chief Executive Officer of
the Company and the Bank. "Such a robust economy played a key role in our
strongest quarterly results of the year."

"Our focus is on adding quality bankers and customers to our franchise," added
Mr. Bordelon, "and continuing our disciplined growth."

Loans and Credit Quality

Loans totaled $680.9 million at September 30, 2013, an increase of $5.0
million, or 1%, from June 30, 2013, and an increase of $10.2 million, or 2%,
from September 30, 2012. During the third quarter, increases in home equity
loans and lines (up $3.0 million), commercial real estate loans (up $2.9
million) and consumer loans (up $2.4 million) were partially offset by
decreases in one- to four-family mortgage loans (down $3.1 million) and
commercial and industrial loans (down $1.1 million).

The following table sets forth the composition of the Company's loan portfolio
(including Covered Loans) as of the dates indicated.

                          September 30,   December 31,   Increase/(Decrease)
(dollars in thousands)    2013            2012           Amount     Percent
Real estate loans:
 One- to
four-family first       $ 178,142       $ 177,816      $ 326        -        %
mortgage
 Home equity loans    40,922          40,425         497        1
and lines
 Commercial real      253,648         252,805        843        -
estate
 Construction and     72,201          75,529         (3,328)    (4)
land
 Multi-family         16,864          19,659         (2,795)    (14)
residential
 Total real        561,777         566,234        (4,457)    (1)
estate loans
Other loans:
 Commercial and       80,278          72,253         8,025      11
industrial
 Consumer             38,819          34,641         4,178      12
 Total other       119,097         106,894        12,203     11
loans
 Total loans     $ 680,874       $ 673,128      $ 7,746      1        %



Nonperforming assets ("NPAs"), which include $8.9 million in assets covered
under loss sharing agreements with the FDIC ("Covered Assets") and $12.8
million in assets acquired from GS Financial Corp. ("GSFC"), totaled $27.4
million at September 30, 2013, a decrease of $90,000 compared to June 30, 2013
and a decrease of $2.7 million compared to September 30, 2012. The ratio of
total NPAs to total assets was 2.85% at September 30, 2013, compared to 2.83%
at June 30, 2013 and 3.10% at September 30, 2012. Excluding acquired assets,
the ratio of NPAs to total assets was 0.69% at September 30, 2013, compared to
0.68% at June 30, 2013 and 0.86% at September 30, 2012.

The Company recorded net loan charge-offs of $84,000 during the third quarter
of 2013, compared to net loan charge-offs of $1.8 million in the second
quarter of 2013 and $464,000 in the third quarter of 2012. The Company's
provision for loan losses for the third quarter of 2013 was $453,000, compared
to $2.2 million for the second quarter of 2013 and $56,000 for the third
quarter of 2012.

The ratio of allowance for loan losses to total loans was 0.95% at September
30, 2013, compared to 0.90% and 0.73% at June 30, 2013 and September 30, 2012,
respectively. Excluding acquired loans, the ratio of the allowance for loan
losses to total loans was 1.09% at September 30, 2013, compared to 1.08% and
1.01% at June 30, 2013 and September 30, 2012, respectively.

Investment Securities Portfolio

The Company's investment securities portfolio totaled $160.4 million at
September 30, 2013, an increase of $4.5 million, or 3%, from June 30, 2013,
and an increase of $5.4 million, or 4%, from September 30, 2012. At September
30, 2013, the Company had a net unrealized gain position on its investment
securities portfolio of $1.1 million, compared to net unrealized gains of $1.4
million and $5.2 million at June 30, 2013 and September 30, 2012,
respectively. The decrease in the unrealized gain primarily reflects
increasing market interest rates. The investment securities portfolio had a
modified duration of 4.7 years at September 30, 2013, compared to 4.2 and 3.7
years at June 30, 2013 and September 30, 2012, respectively.

Deposits

During the third quarter of 2013, core deposits (i.e., checking, savings and
money market accounts) increased $2.6 million, or 1%, from June 30, 2013, and
increased $35.3 million, or 7%, from September 30, 2012. The increases in
core deposits were offset by declines in certificate of deposits ("CDs"), as
higher-priced CDs matured. Total deposits were $765.8 million at September
30, 2013, a decrease of $11.4 million, or 2%, from June 30, 2013, and a
decrease of $19.1 million, or 2%, from September 30, 2012.

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

                        September 30,   December 31,   Increase / (Decrease)
(dollars in             2013            2012           Amount      Percent
thousands)
Demand deposit        $ 171,915       $ 152,462      $ 19,453      13        %
Savings                 54,709          51,515         3,194       6
Money market            203,218         191,191        12,027      6
NOW                     126,595         123,294        3,301       3
Certificates of         209,373         252,967        (43,594)    (17)
deposit
 Total         $ 765,810       $ 771,429      $ (5,619)     (1)       %
deposits

Share Repurchases

Under the Company's June 2013 stock repurchase program, the Company may
purchase up to 370,000 shares, or approximately 5%, of the Company's
outstanding common stock. The Company purchased 44,177 shares of its common
stock during the third quarter of 2013 at an average price per share of
$18.47. As of October 23, 2013, an additional 168,123 shares remain eligible
for purchase under the plan. The tangible book value per share of the
Company's common stock was $19.47 at September 30, 2013.

Net Interest Income

Net interest income for the third quarter of 2013 totaled $10.4 million, an
increase of $473,000, or 5%, compared to the second quarter of 2013, and a
decrease of $513,000, or 5%, compared to the third quarter of 2012. The
Company's net interest margin was 4.79% for the third quarter of 2013, 20
basis points higher than the second quarter of 2013 and 17 basis points lower
than the third quarter of 2012. The increase in the net interest margin for
the third quarter of 2013 related primarily to an increase in the yield earned
on loans covered under loss sharing agreements with the FDIC ("Covered
Loans"). As a result of improved cash flow expectations related to Covered
Loans, the Company adjusted the accretable yield recognized on Covered Loans
during the quarter. The Covered Loan portfolio yielded 15.60% during the
third quarter of 2013, compared to 10.18% and 8.16% during the second quarter
of 2013 and third quarter of 2012, respectively. Excluding Covered Loans, the
yield on loans receivable would have been 5.72% during the third quarter of
2013, compared to 5.63% and 6.44% during the second quarter of 2013 and third
quarter of 2012, 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, 2013     June 30, 2013          September 30, 2012
(dollars in        Average Average        Average Average        Average Average
thousands)         Balance Yield/Rate     Balance Yield/Rate     Balance Yield/Rate
Interest-earning
assets:
Loans receivable $ 676,639 6.07       % $ 683,374 5.86       % $ 678,936 6.56       %
Investment         157,352 2.10           154,523 2.11           149,472 2.18
securities (TE)
Other
interest-earning   27,293  0.47           28,153  0.46           41,373  0.40
assets
Total
interest-earning $ 861,284 5.17         $ 866,050 5.01         $ 869,781 5.52
assets
Interest-bearing
liabilities:
Deposits:
Savings,
checking, and    $ 389,773 0.24         $ 372,613 0.26         $ 355,107 0.34
money market
Certificates of    215,745 0.90           231,824 0.97           269,840 1.08
deposit
Total
interest-bearing   605,518 0.48           604,437 0.53           624,947 0.66
deposits
FHLB advances      41,083  0.90           50,734  0.96           48,175  1.39
Total
interest-bearing $ 646,601 0.51         $ 655,171 0.56         $ 673,122 0.71
liabilities
Net interest               4.66       %           4.45       %           4.81       %
spread (TE)
Net interest               4.79       %           4.59       %           4.96       %
margin (TE)

Noninterest Income

Noninterest income for the third quarter of 2013 totaled $1.7 million, a
decrease of $531,000, or 24%, compared to the second quarter of 2013 and a
decrease of $421,000, or 20%, compared to the third quarter of 2012. The
decrease in noninterest income in the third quarter of 2013 compared to the
second quarter of 2013 resulted primarily from the absence of gains on the
sale of securities (down $428,000) and a decrease in gains on the sale of
mortgage loans (down $112,000).

The decrease in noninterest income in the third quarter of 2013 compared to
the third quarter of 2012 resulted primarily from lower gains on the sale of
mortgage loans (down $337,000) and the absence of gains on the sale of
securities (down $163,000).

Noninterest Expense

Noninterest expense for the third quarter of 2013 totaled $7.9 million, a
decrease of $124,000, or 2%, compared to the second quarter of 2013 and a
decrease of $499,000, or 6%, compared to the third quarter of 2012. The
decrease in noninterest expense in the third quarter of 2013 compared to the
second quarter of 2013 resulted primarily from lower other expenses (down
$314,000 primarily due to the absence of $169,000 in penalties incurred in
prepaying long-term FHLB borrowings and lower other loan fee expenses of
$134,000), data processing and communication expenses (down $52,000), forms,
printing and supplies expenses (down $49,000) and marketing and advertising
expenses (down $20,000), which were partially offset by higher compensation
and benefits expenses (up $137,000) and foreclosed assets expenses (up
$123,000).

The decrease in noninterest expense in the third quarter of 2013 compared to
the third quarter of 2012 resulted primarily from lower foreclosed asset
expenses (down $157,000), other expenses (down $155,000), data processing and
communication expenses (down $120,000) and marketing and advertising expenses
(down $50,000).

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 loans acquired from the FDIC and GSFC. 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, 2012, 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     September     %         June 30,      December 31,
                 30,           30,
                 2013          2012          Change    2013          2012
Assets
Cash and cash    $            $            (31)   %  $            $ 
equivalents      35,953,034    52,307,703              51,957,884    39,539,366
Interest-bearing
deposits in      3,185,000     4,019,000     (21)      3,284,000     3,529,000
banks
Investment
securities
available for    151,453,721   153,006,535   (1)       150,387,103   157,255,828
sale, at fair
value
Investment
securities held  8,965,112     2,049,718     337       5,505,716     1,665,184
to maturity
Mortgage loans   1,711,585     5,572,587     (69)      4,229,298     5,627,104
held for sale
Loans covered by
loss sharing     23,723,936    49,500,917    (52)      27,350,973    45,764,397
agreements
Noncovered
loans, net of    657,150,445   621,157,286   6         648,568,074   627,363,937
unearned income
 Total loans 680,874,381   670,658,203   2         675,919,047   673,128,334
Allowance for    (6,462,841)   (4,906,292)   32        (6,093,556)   (5,319,235)
loan losses
 Total
loans, net of    674,411,540   665,751,911   1         669,825,491   667,809,099
allowance for
loan losses
FDIC loss
sharing          13,576,606    16,813,909    (19)      15,065,655    15,545,893
receivable
Office
properties and   30,312,996    30,910,746    (2)       30,473,517    30,777,184
equipment, net
Cash surrender
value of         17,638,008    17,157,946    3         17,523,536    17,286,434
bank-owned life
insurance
Accrued interest
receivable and   24,688,760    26,720,243    (8)       23,511,646    23,891,172
other assets
Total Assets     $             $             (1)       $             $
                 961,896,362   974,310,298             971,763,846   962,926,264
Liabilities
Deposits         $             $             (2)    %  $             $
                 765,810,312   784,941,867             777,236,290   771,429,335
Federal Home
Loan Bank        50,900,000    43,440,343    17        52,500,000    46,256,805
advances
Accrued interest
payable and      4,965,371     5,717,129     (13)      3,868,422     3,666,264
other
liabilities
Total            821,675,683   834,099,339   (1)       833,604,712   821,352,404
Liabilities
Shareholders'
Equity
Common stock     89,579        89,483        -      %  89,563        89,506
Additional       91,743,191    90,513,760    1         91,309,237    90,986,820
paid-in capital
Treasury stock   (28,003,896)  (20,365,995)  38        (27,187,845)  (21,719,954)
Common stock
acquired by      (6,376,957)   (7,544,939)   (15)      (6,487,467)   (7,455,669)
benefit plans
Retained         82,023,494    74,110,812    11        79,540,747    76,435,222
earnings
Accumulated
other            745,268       3,407,838     (78)      894,899       3,237,935
comprehensive
income
Total
Shareholders'    140,220,679   140,210,959   -         138,159,134   141,573,860
Equity
Total
Liabilities and  $             $             (1)       $             $
Shareholders'    961,896,362   974,310,298             971,763,846   962,926,264
Equity



HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
              For The Three Months             For TheNine Months
              Ended                            Ended
              September 30,         %         September 30,        %
              2013        2012        Change    2013       2012        Change
Interest
Income
Loans,        $         $                     $          $
including     10,438,505 11,309,112  (8)    %  30,578,885 32,063,514  (5)    %
fees
Investment    754,902     769,202     (2)       2,278,112  2,440,833   (7)
securities
Other
investments   32,471      41,404      (22)      96,077     110,870     (13)
and deposits
  Total
interest      11,225,878  12,119,718  (7)       32,953,074 34,615,217  (5)
income
Interest
Expense
Deposits      729,941     1,036,707   (30)   %  2,410,621  3,253,133   (26)   %
Federal Home
Loan Bank     92,610      166,984     (45)      358,806    525,587     (32)
advances
  Total
interest      822,551     1,203,691   (32)      2,769,427  3,778,720   (27)
expense
Net interest  10,403,327  10,916,027  (5)       30,183,647 30,836,497  (2)
income
Provision for 453,133     55,736      713       3,221,326  1,927,962   67
loan losses
Net interest
income after  9,950,194   10,860,291  (8)       26,962,321 28,908,535  (7)
provision for
loan losses
Noninterest
Income
Service fees  627,607     535,016     17     %  1,753,547  1,688,874   4      %
and charges
Bank card     445,784     443,986     -         1,314,299  1,396,678   (6)
fees
Gain on sale  314,626     651,457     (52)      1,289,487  1,395,561   (8)
of loans, net
Income from
bank-owned    114,473     124,566     (8)       351,575    386,772     (9)
life
insurance
Gain on the
sale of       -           162,534     -         428,200    221,781     93
securities,
net
Discount
accretion of
FDIC loss     111,066     108,762     2         334,913    461,893     (27)
sharing
receivable
Other income  52,215      60,537      (14)      170,351    134,870     26
 Total
noninterest   1,665,771   2,086,858   (20)      5,642,372  5,686,429   (1)
income
Noninterest
Expense
Compensation  5,017,628   5,046,836   (1)    %  14,993,975 14,569,194  3      %
and benefits
Occupancy     779,908     722,320     8         2,248,632  2,119,265   6
Marketing and 152,270     202,400     (25)      563,793    538,764     5
advertising
Data
processing    574,364     694,440     (17)      1,842,036  2,033,779   (9)
and
communication
Professional  217,657     213,294     2         623,909    701,030     (11)
fees
Forms,
printing and  86,965      111,203     (22)      329,762    377,918     (13)
supplies
Franchise and 272,960     305,889     (11)      819,540    657,191     25
shares tax
Regulatory    225,175     218,193     3         668,059    629,368     6
fees
Foreclosed    90,982      248,089     (63)      236,740    758,813     (69)
assets, net
Other         471,670     626,409     (25)      1,873,530  1,855,486   1
expenses
  Total
noninterest   7,889,579   8,389,073   (6)       24,199,976 24,240,808  -
expense
Income before
income tax    3,726,386   4,558,076   (18)      8,404,717  10,354,156  (19)
expense
Income tax    1,243,639   1,505,746   (17)      2,816,445  3,488,694   (19)
expense
Net income    $        $           (19)      $          $           (19)
              2,482,747  3,052,330            5,588,272 6,865,462
Earnings per  $      $       (14)   %  $      $       (15)   %
share - basic    0.38   0.44                 0.84      0.99
Earnings per  $      $                 $      $    
share -          0.37   0.42      (12)       0.80      0.95      (16)
diluted



HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
                  For The Three Months                For The
                  Ended                               Three
                  September 30,          %           Months      %
                                                       Ended
                  2013         2012        Change    June 30,    Change
                                                       2013
(dollars in
thousands except
per share data)
EARNINGS DATA
Total interest    $           $12,120     (7)      %  $        3        %
income            11,226                               10,852
Total interest    823          1,204       (32)        922          (11)
expense
Net interest      10,403       10,916      (5)         9,930        5
income
Provision for     453          56          709         2,248        (80)
loan losses
Total noninterest 1,666        2,087       (20)        2,196        (24)
income
Total noninterest 7,889        8,389       (6)         8,014        (2)
expense
Income tax        1,244        1,506       (17)        621          100
expense
                  $          $                     $    
Net income        2,483        3,052       (19)                   100
                                                       1,243
AVERAGE BALANCE
SHEET DATA
Total assets      $ 958,560   $974,761    (2)      %  $        (1)      %
                                                       967,679
Total
interest-earning  861,284      869,781     (1)         866,050      (1)
assets
Total loans       676,639      678,936     -           683,374      (1)
Total
interest-bearing  605,518      624,947     (3)         604,437      -
deposits
Total
interest-bearing  646,601      673,122     (4)         655,171      (1)
liabilities
Total deposits    776,556      783,542     (1)         771,868      1
Total
shareholders'     139,060      140,548     (1)         143,705      (3)
equity
SELECTED RATIOS
^(1)
Return on average 1.04       % 1.25      % (17)     %  0.51      %  104      %
assets
Return on average 7.14         8.69        (18)        3.46         106
equity
Efficiency ratio  65.37        64.52       1           66.37        (2)
^(2)
Average equity to 14.51        14.42       1           14.85        (2)
average assets
Tier 1 leverage
capital           14.29        13.23       8           13.85        3
ratio^(3)
Total risk-based
capital           22.33        21.39       4           22.14        1
ratio^(3)
Net interest      4.79         4.96        (3)         4.59         4
margin ^(4)
PER SHARE DATA
Basic earnings    $         $                    $    
per share         0.38         0.44        (14)     %            100      %
                                                       0.19
Diluted earnings  0.37         0.42        (12)        0.18         106
per share
Book value at     19.75        18.66       6           19.35        2
period end
Tangible book
value at period   19.47        18.35       6           19.06        2
end
PER SHARE DATA
Shares
outstanding at    7,099,164    7,512,360   (6)      %  7,141,691    (1)      %
period end
Weighted average
shares
outstanding
 Basic          6,481,911    6,950,785   (7)      %  6,652,097    (3)      %
 Diluted        6,768,578    7,212,323   (6)         6,963,570    (3)

    

^(1) With the exception of end-of-period ratios, all ratios are based on
     average monthly balances during the respective periods.
     The efficiency ratio represents noninterest expense as a percentage of
^(2) 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.
     Net interest margin represents net interest income as a percentage of
^(4) 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, 2013           June 30, 2013                September 30, 2012
               Covered Noncovered Total     Covered Noncovered Total     Covered Noncovered Total
(dollars in
thousands)
CREDIT
QUALITY^(1)
(2)
Nonaccrual     $       $ 15,784   $         $       $ 16,938   $         $9,106  $12,608    $
loans          5,807              21,591    6,949             23,887                       21,714
Accruing loans
past due 90    -       -          -         -       -          -         -       -          -
days and over
Total
nonperforming  5,807   15,784     21,591    6,949   16,938     23,887    9,106   12,608     21,714
loans
Other real     3,064   2,786      5,850     2,755   888        3,643     3,143   5,300      8,443
estate owned
Total
nonperforming  8,871   18,570     27,441    9,704   17,826     27,530    12,249  17,908     30,157
assets
Performing
troubled debt  6       437        443       321     532        853       675     816        1,491
restructurings
Total
nonperforming  $                  $         $                  $         $                  $
assets and     8,877   $ 19,007   27,884    10,025  $ 18,358   28,383    12,924  $ 18,724   31,648
troubled debt
restructurings
Nonperforming
assets to                         2.85   %                     2.83   %                     3.10   %
total assets
Nonperforming
loans to total                    2.24                         2.46                         2.23
assets
Nonperforming
loans to total                    3.17                         3.53                         3.24
loans
Allowance for
loan losses to                    23.55                        22.13                        16.27
nonperforming
assets
Allowance for
loan losses to                    29.93                        25.51                        22.60
nonperforming
loans
Allowance for
loan losses to                    0.95                         0.90                         0.73
total loans
Year-to-date                      $                            $
loan                              2,135                       2,030                       $2,151
charge-offs
Year-to-date
loan                              58                           37                           25
recoveries
Year-to-date                      $                            $                            $
net loan                          2,077                       1,993                       2,126
charge-offs
Annualized YTD
net loan                          0.41   %                     0.39   %                     0.42   %
charge-offs to
total loans

     

    Nonperforming loans consist of nonaccruing loans and accruing loans 90
     days or more past due. Nonperforming assets consist of nonperforming
^(1) loans andrepossessed 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.
     Asset quality information includes assets covered under FDIC loss sharing
^(2) 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.

Website: http://www.home24bank.com
Contact: John W. Bordelon, President and CEO (337) 237-1960
 
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