HOME BANCORP, INC. - FORM 8-K - EX-99.1 - PRESS RELEASE

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8-K - FORM 8-K - HOME BANCORP, INC.	d8k.htm

Exhibit 99.1

For further information contact:

John W. Bordelon, President and CEO

(337) 237-1960

Release Date:

July 26, 2011

For Immediate Release

HOME BANCORP ANNOUNCES 2011 SECOND QUARTER RESULTS

Lafayette, Louisiana – 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 $1.3 million for the second quarter of 2011, an increase of $473,000, or 60%, compared to the first quarter of 2011 and a decrease of $199,000, or 14%, compared to the second quarter of 2010. Diluted earnings per share were $0.17 for the second quarter of 2011, compared to $0.11 for the first quarter of 2011 and $0.19 for the second quarter of 2010.

“The South Louisiana banking landscape is changing rapidly due to acquisitions and regulatory and financial pressures on many institutions,” stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. “This transition had led many to question their current relationships. Our reputation for serving our associates and customers continues to foster opportunities to attract exceptional bankers and customers into our family.”

“Although loan demand was relatively light during the first half of the year,” added Mr. Bordelon, “the loan pipeline began to build late in the second quarter. We expect to have opportunities to deepen and add new relationships over the remainder of 2011.”

Acquisition of GS Financial Corp.

As previously reported, the Company completed the acquisition of GS Financial Corp., the holding company of Guaranty Savings Bank of Metairie, Louisiana on July 15, 2011. As of the July 15^th closing date, the combined company had total assets of approximately $975 million, $640 million in loans and $720 million in deposits.

The Company plans to convert operating systems at the former Guaranty Savings Bank to those of Home Bank in September 2011. The Company expects to realize cost savings of approximately $1.5 million on a pre-tax basis, and anticipates that the transaction will be over 10% accretive to earnings, once savings are fully phased in by 2012. The dilution to tangible book value is expected to be minimal. Merger-related expenses are expected to total approximately $2.5 million on a pre-tax basis. Following the merger, Home Bank’s capital position remains one of the strongest in the industry with total risk-based capital near 19%. No additional capital was needed to complete the transaction.

Shareholders of GS Financial received $21.00 per share in cash, resulting in a total purchase price of $26.4 million.

Loans and Credit Quality

Loans totaled $449.5 million at June 30, 2011, an increase of $7.5 million, or 2%, from March 31, 2011, and a decrease of $5.6 million, or 1%, from June 30, 2010. During the second quarter of 2011, Noncovered Loans increased $15.1 million, while Covered Loans decreased $7.6 million. Growth in the Noncovered Loan portfolio was primarily driven by commercial real estate (up $6.2 million) and commercial and industrial (up $5.8 million) loans.

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


*(dollars in thousands)*	June 30, 2011		December 31, 2010		Total Loans Increase/(Decrease)
Noncovered real estate loans:
One- to four-family first mortgage	$	103,680	$	105,157	$	(1,477	)	(1	)%
Home equity loans and lines		25,976		24,898		1,078		4
Commercial real estate		123,509		115,946		7,563		7
Construction and land		45,319		45,177		142		—
Multi-family residential		4,562		4,493		69		2

Total noncovered real estate loans		303,046		295,671		7,375		3

Noncovered other loans:
Commercial and industrial		54,219		42,247		11,972		28
Consumer		23,854		21,546		2,308		11

Total noncovered other loans		78,073		63,793		14,280		22

Total noncovered loans		381,119		359,464		21,655		6
Covered loans		68,422		80,447		(12,025	)	(15	)

Total loans	$	449,541	$	439,911	$	9,630		2	%

Credit quality statistics remained strong during the second quarter of 2011. Nonperforming assets, excluding Covered Assets, were $1.2 million at June 30, 2011, an increase of $37,000, or 3%, from March 31, 2011, and a decrease of $894,000, or 42%, from June 30, 2010. The ratio of nonperforming assets, excluding Covered Assets, to total assets was 0.19% at June 30, 2011 and March 31, 2011, compared to 0.30% at June 30, 2010.

The Company recorded net charge-offs of $227,000 during the second quarter of 2011, compared to net charge-offs of $3,000 in the first quarter of 2011 and $76,000 in the second quarter of 2010. The increase was primarily attributable to a $240,000 commercial loan charged off during the second quarter of 2011. The Company’s loan loss provision for the second quarter of 2011 was $265,000, compared to $102,000 and $200,000 for the first quarter of 2011 and the second quarter of 2010, respectively.

At June 30, 2011, the Company’s ratio of allowance for loan losses to total Noncovered Loans was 1.06%, compared to 1.10% and 1.07% at March 31, 2011 and June 30, 2010, respectively.

Investment Securities Portfolio

The Company’s investment securities portfolio totaled $148.2 million at June 30, 2011, an increase of $6.5 million, or 5%, from March 31, 2011, and an increase of $11.9 million, or 9%, from June 30, 2010. At June 30, 2011, the Company had a net unrealized gain position on its investment securities portfolio of $1.9 million, compared to net unrealized gains of $1.6 million and $786,000 as of March 31, 2011 and June 30, 2010, respectively.

As previously reported, the Company sold $3.6 million of its non-agency mortgage-backed securities portfolio during the first quarter of 2011. All of the remaining securities in the Company’s portfolio of non-agency mortgage-backed securities, which had an amortized cost of $15.6 million at June 30, 2011, are rated investment grade by Standard & Poor’s and/or Moody’s.

Deposits

Core deposits (i.e., checking, savings and money market accounts) increased for the eighth consecutive quarter, posting growth of $1.3 million, or 0.4%, during the second quarter of 2011. Total deposits were $527.4 million at June 30, 2011, a decrease of $16.2 million, or 3%, from March 31, 2011, and a decrease of $9.1 million, or 2%, from June 30, 2010.

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


	June 30,		December 31,		Increase / (Decrease)
*(dollars in thousands)*	2011		2010		Amount			Percent
Demand deposit	$	102,663	$	100,579	$	2,084			2	%
Savings		31,370		29,258		2,112			7
Money market		144,944		133,245		11,699			9
NOW		65,800		68,398		(2,598	)		(4	)
Certificates of deposit		182,626		221,738		(39,112	)		(18	)

Total deposits	$	527,403	$	553,218	$	(25,815	)		(5	)%

Net Interest Income

Net interest income for the second quarter of 2011 totaled $7.0 million, an increase of $87,000, or 1%, compared to the first quarter of 2011, and a decrease of $535,000, or 7%, compared to the second quarter of 2010. The Company’s net interest margin was 4.55% for the second quarter of 2011, 12 basis points lower than the first quarter of 2011 and 35 basis points lower than the second quarter of 2010.

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
	June 30, 2011					June 30, 2010					March 31, 2011
*(dollars in thousands)*	Average Balance		Average Yield/Rate			Average Balance		Average Yield/Rate			Average Balance		Average Yield/Rate
Earning assets:
Loans receivable	$	445,947		6.53	%	$	455,574		6.73	%	$	439,490		6.59	%
Investment securities		145,624		2.24			137,175		3.97			130,607		2.94
Other interest-earning assets		21,371		0.66			20,362		0.69			24,423		0.61

Total earning assets	$	612,942		5.31		$	613,111		5.91		$	594,520		5.55


Interest-bearing liabilities:
Deposits:
Savings, checking, and money market	$	241,960		0.48		$	193,271		0.73		$	233,440		0.53
Certificates of deposit		191,038		1.56			255,856		1.62			209,734		1.69

Total interest-bearing deposits		432,998		0.96			449,127		1.24			443,174		1.08
FHLB advances		41,011		1.12			27,436		2.27			15,280		2.64

Total interest-bearing liabilities	$	474,009		0.97		$	476,563		1.29		$	458,454		1.13


Net interest spread				4.34	%				4.62	%				4.42	%
Net interest margin				4.55	%				4.90	%				4.67	%

Noninterest Income

Noninterest income for the second quarter of 2011 totaled $2.1 million, an increase of $860,000, or 69%, compared to the first quarter of 2011 and an increase of $708,000, or 51%, compared to the second quarter of 2010. During the second quarter of 2011, the Company entered into a settlement agreement with respect to litigation brought by the Company against a counterparty for losses reported by the Company in 2008 relating to the Company’s former business line of providing cash to third-party ATM providers. Under the terms of the settlement agreement, the Company received $525,000 in April 2011 and has foregone its right to pursue future claims related to any unrecovered loss. The $525,000 settlement payment is included in “other income” during the quarter.

The increase in noninterest income in the second quarter of 2011 compared to the first quarter of 2011 resulted primarily from the litigation settlement in the second quarter of 2011 and a net loss of $166,000 on the sale of a sizeable portion of the Company’s non-agency mortgage-backed securities portfolio in the first quarter of 2011.

The increase in noninterest income in the second quarter of 2011 compared to the second quarter of 2010 resulted primarily from the litigation settlement, higher levels of bank card fees and a charge of $141,000 for the other-than-temporary impairment of securities during the second quarter of 2010.

Noninterest Expense

Noninterest expense for the second quarter of 2011 totaled $6.8 million, an increase of $84,000, or 1%, compared to the first quarter of 2011 and an increase of $321,000, or 5%, compared to the second quarter of 2010.

The increase in noninterest expense in the second quarter of 2011 compared to the first quarter of 2011 resulted primarily from an increase in marketing and advertising expenses and data processing and communication expenses. These increases were partially offset by decreases in compensation and benefits expenses and regulatory fees.

The increase in noninterest expense in the second quarter of 2011 compared to the second quarter of 2010 was primarily due to $157,000 of professional merger-related expenses recorded during the second quarter of 2011.

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, 2010, 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. In addition, statements regarding the timing and success of the integration of GS Financial Corp., anticipated cost savings, earnings accretion, book value dilution and merger-related expenses are also forward-looking. 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


	June 30,			June 30,			%			March 31,			December 31,
	2011			2010			Change			2011			2010
Assets
Cash and cash equivalents	$	21,588,068		$	21,976,535			(2	)%	$	22,466,923		$	36,970,638
Interest-bearing deposits in banks		8,273,000			7,112,000			16			8,857,000			7,867,000
Investment securities available for sale, at fair value		140,969,334			115,131,224			22			133,933,288			111,962,331
Investment securities held to maturity		7,253,356			21,218,038			(66	)		7,764,023			15,220,474
Mortgage loans held for sale		2,773,616			2,662,100			4			560,991			2,436,986
Loans covered by loss sharing agreements		68,421,716			99,984,239			(32	)		75,996,118			80,446,859
Noncovered loans, net of unearned income		381,119,264			355,180,759			7			366,003,288			359,464,400

Total loans		449,540,980			455,164,998			(1	)		441,999,406			439,911,259
Allowance for loan losses		(4,057,044	)		(3,804,560	)		7			(4,019,285	)		(3,919,745	)

Total loans, net of allowance for loan losses		445,483,936			451,360,438			(1	)		437,980,121			435,991,514

FDIC loss sharing receivable		30,709,836			34,673,627			(11	)		31,030,272			32,012,783
Office properties and equipment, net		23,015,352			23,452,816			(2	)		23,216,809			23,371,915
Cash surrender value of bank-owned life insurance		16,485,001			15,872,609			4			16,338,064			16,192,645
Accrued interest receivable and other assets		20,848,648			15,858,555			31			18,327,587			18,396,806

Total Assets	$	717,400,147		$	709,317,942			1		$	700,475,078		$	700,423,092


Liabilities
Deposits	$	527,402,695		$	536,485,853			(2	)%	$	543,619,256		$	553,217,853
Federal Home Loan Bank advances		52,500,000			29,744,891			77			21,000,000			13,000,000
Accrued interest payable and other liabilities		3,740,456			10,349,392			(64	)		3,281,323			2,675,297

Total Liabilities		583,643,151			576,580,136			1			567,900,579			568,893,150


Shareholders’ Equity
Common stock		89,312			89,270			—	%		89,270			89,270
Additional paid-in capital		88,922,459			88,064,013			1			89,183,147			88,818,862
Treasury stock		(11,849,932	)		(5,734,469	)		(107	)		(11,028,575	)		(10,425,725	)
Common stock acquired by benefit plans		(8,813,501	)		(9,949,096	)		11			(9,676,562	)		(9,770,556	)
Retained earnings		64,187,699			59,749,653			7			62,920,252			62,125,568
Accumulated other comprehensive income (loss)		1,220,959			518,435			136			1,086,967			692,523

Total Shareholders’ Equity		133,756,996			132,737,806			1			132,574,499			131,529,942

Total Liabilities and Shareholders’ Equity	$	717,400,147		$	709,317,942			1		$	700,475,078		$	700,423,092

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME


	For The Three Months Ended								For The Six Months Ended
	June 30,					%			June 30,						%
	2011		2010			Change			2011			2010			Change
Interest Income
Loans, including fees	$	7,265,525	$	7,643,662			(5	)%	$	14,426,178		$	13,550,892			6	%
Investment securities		817,359		1,363,142			(40	)		1,778,180			2,686,360			(34	)
Other investments and deposits		34,542		34,729			(1	)		71,263			62,052			15

Total interest income		8,117,426		9,041,533			(10	)		16,275,621			16,299,304			—


Interest Expense
Deposits		1,035,004		1,382,667			(25	)%		2,212,053			2,618,864			(16	)%
Federal Home Loan Bank advances		115,087		156,391			(26	)		215,726			314,050			(31	)

Total interest expense		1,150,091		1,539,058			(25	)		2,427,779			2,932,914			(17	)

Net interest income		6,967,335		7,502,475			(7	)		13,847,842			13,366,390			4
Provision for loan losses		264,673		199,750			33			366,949			549,782			(33	)

Net interest income after provision for loan losses		6,702,662		7,302,725			(8	)		13,480,893			12,816,608			5


Noninterest Income
Service fees and charges		545,599		526,884			4	%		1,020,423			994,273			3	%
Bank card fees		444,093		385,972			15			842,188			669,029			26
Gain on sale of loans, net		121,293		101,902			19			225,687			180,295			25
Income from bank-owned life insurance		146,937		162,420			(10	)		292,356			311,666			(6	)
Other-than-temporary impairment of securities		—		(140,517	)		100			—			(140,517	)		100
Gain (loss) on the sale of securities, net		—		39,131			(100	)		(166,082	)		39,131			(524	)
Discount accretion of FDIC loss sharing receivable		231,263		251,588			(8	)		469,932			251,588			87
Other income		614,275		67,936			804			662,311			87,473			657

Total noninterest income		2,103,460		1,395,316			51			3,346,815			2,392,938			40


Noninterest Expense
Compensation and benefits		3,915,112		3,871,379			1	%		7,913,520			6,883,516			15	%
Occupancy		559,165		648,080			(14	)		1,124,426			1,036,063			9
Marketing and advertising		215,145		202,200			6			376,195			403,937			(7	)
Data processing and communication		572,000		633,397			(10	)		1,113,507			1,012,779			10
Professional fees		427,520		228,889			87			847,252			696,951			22
Franchise and shares tax		180,501		141,636			27			361,001			342,707			5
Regulatory fees		200,642		122,352			64			430,382			233,256			85
Other expenses		742,963		644,391			15			1,375,342			1,129,600			22

Total noninterest expense		6,813,048		6,492,324			5			13,541,625			11,738,809			15

Income before income tax expense		1,993,074		2,205,717			(10	)		3,286,083			3,470,737			(5	)
Income tax expense		725,627		738,923			(2	)		1,223,952			1,158,528			6

Net income	$	1,267,447	$	1,466,794			(14	)%	$	2,062,131		$	2,312,209			(11	)%


Earnings per share - basic	$	0.18	$	0.19			(5	)%	$	0.29		$	0.30			(3	)%

Earnings per share - diluted	$	0.17	$	0.19			(11	)	$	0.28		$	0.30			(3	)

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION


	For The Three Months Ended June 30,						%			For The Three Months Ended			%
	2011			2010			Change			March 31, 2011			Change
(dollars in thousands except per share data)
EARNINGS DATA
Total interest income	$	8,117		$	9,042			(10	)%	$	8,159			(1	)%
Total interest expense		1,150			1,539			(25	)		1,278			(10	)

Net interest income		6,967			7,503			(7	)		6,881			1

Provision for loan losses		265			200			33			102			160
Total noninterest income		2,103			1,395			51			1,243			69
Total noninterest expense		6,812			6,492			5			6,729			1
Income tax expense		726			739			(2	)		498			46

Net income	$	1,267		$	1,467			(14	)	$	795			59


Earnings per share - diluted	$	0.17		$	0.19			(11	)%	$	0.11			55	%


AVERAGE BALANCE SHEET DATA
Total assets	$	709,360		$	702,783			1	%	$	692,755			2	%
Total interest-earning assets		612,942			613,111			—			594,520			3
Loans		445,947			455,574			(2	)		439,490			1
Interest-bearing deposits		432,998			449,127			(4	)		443,174			(2	)
Interest-bearing liabilities		474,009			476,563			(1	)		458,454			3
Total deposits		533,640			538,380			(1	)		543,323			(2	)
Total shareholders’ equity		133,344			132,988			—			131,994			1

SELECTED RATIOS ⁽¹⁾
Return on average assets		0.71	%		0.83	%		(14	)%		0.46	%		54	%
Return on average equity		3.80			4.41			(14	)		2.41			58
Efficiency ratio ⁽²⁾		75.11			72.78			3			82.82			(9	)
Average equity to average assets		18.80			18.92			(1	)		19.05			(1	)
Tier 1 leverage capital ratio⁽³⁾		15.44			14.88			4			15.59			(1	)
Total risk-based capital ratio⁽³⁾		27.44			22.29			23			28.26			(3	)
Net interest margin ⁽⁴⁾		4.55			4.90			(7	)		4.67			(3	)

PER SHARE DATA
Basic earnings per share	$	0.18		$	0.19			(5	)%	$	0.11			64	%
Diluted earnings per share		0.17			0.19			(11	)		0.11			55
Book value at period end		16.65			15.65			6			16.39			2

PER SHARE DATA
Shares outstanding at period end		8,033,204			8,480,531			(5	)%		8,087,159			(1	)%
Weighted average shares outstanding
Basic		7,191,476			7,620,257			(6	)%		7,177,377			—	%
Diluted		7,337,358			7,678,378			(4	)		7,277,013			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.

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY CREDIT QUALITY INFORMATION


	June 30, 2011									March 31, 2011									June 30, 2010
	Covered			Noncovered			Total			Covered			Noncovered			Total			Covered			Noncovered			Total
(dollars in thousands)
CREDIT QUALITY^(1) (2)
Nonaccrual loans	$	11,668		$	1,127		$	12,795		$	15,479		$	1,090		$	16,569		$	19,214		$	1,668		$	20,882
Accruing loans past due 90 days and over		—			—			—			—			—			—			—			—			—

Total nonperforming loans		11,668			1,127			12,795			15,479			1,090			16,569			19,214			1,668			20,882
Other real estate owned		7,178			92			7,270			5,281			92			5,373			2,643			445			3,088

Total nonperforming assets		18,846			1,219			20,065			20,760			1,182			21,942			21,857			2,113			23,970
Performing troubled debt restructurings		30			922			952			—			1,067			1,067			—			743			743

Total nonperforming assets and troubled debt restructurings	$	18,876		$	2,141		$	21,017		$	20,760		$	2,249		$	23,009		$	21,857		$	2,856		$	24,713


Nonperforming assets to total assets					0.19	%								0.19	%								0.30	%
Nonperforming loans to total assets					0.18									0.18									0.24
Nonperforming loans to total loans					0.30									0.30									0.37
Allowance for loan losses to nonperforming assets					332.80									340.12									180.04
Allowance for loan losses to nonperforming loans					360.00									368.80									228.16
Allowance for loan losses to total loans					1.06									1.10									1.07

Year-to-date loan charge-offs	$	—		$	260		$	260		$	—		$	9		$	9		$	—		$	124		$	124
Year-to-date loan recoveries		—			30			30			—			6			6			—			27			27

Year-to-date net loan charge-offs	$	—		$	230		$	230		$	—		$	3		$	3		$	—		$	97		$	97

Annualized YTD net loan charge-offs to total loans		—	%		0.12	%		0.10	%		—	%		—	%		—	%		—	%		0.05	%		0.04	%

⁽¹⁾

Nonperforming loans consist of nonaccruing loans and 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 excludes 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”.

HOME BANCORP, INC. - FORM 8-K - EX-99.1 - PRESS RELEASE - July 26, 2011

Attached files

HOME BANCORP, INC. Reports