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

Attached files

file	filename
8-K - FORM 8-K - HOME BANCORP, INC.	d384280d8k.htm

Exhibit 99.1

For further information contact:

John W. Bordelon, President and CEO

(337) 237-1960


Release Date:		July 24, 2012
		For Immediate Release

HOME BANCORP ANNOUNCES 2012 SECOND QUARTER RESULTS

AND APPROVAL OF SHARE REPURCHASE PROGRAM

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 $1.8 million for the second quarter of 2012, a decrease of $308,000, or 15%, compared to the first quarter of 2012 and an increase of $485,000, or 38%, compared to the second quarter of 2011. Diluted earnings per share were $0.24 for the second quarter of 2012, a decrease of $0.05, or 17%, compared to the first quarter of 2012 and an increase of $0.07, or 41%, compared to the second quarter of 2011.

The Company also announced its Board of Directors approved a new program to repurchase up to 383,598 shares, or approximately 5%, of the Company’s outstanding common stock. Repurchases may be made by the Company in open-market or privately-negotiated transactions as, in the opinion of management, market conditions warrant. The Company completed a previously announced repurchase program (the “May 2011” program) earlier this month.

The Company’s common stock was added to the Russell 3000 Index in June 2012. The index measures the performance of the 3,000 largest companies in the United States based on market capitalization.

“Louisiana businesses continue to discover the value we add to their companies,” stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. “In addition to making their banking more affordable, Home Bank is committed to helping businesses and individuals effectively navigate the financial landscape by providing sound advice, reliable solutions and an unmatched level of service.”

Loans and Credit Quality

The Company’s loans totaled $679.8 million at June 30, 2012, an increase of $1.1 million, or 0.2%, from March 31, 2012, and an increase of $230.2 million, or 51%, from June 30, 2011. Second quarter 2012 loan growth related primarily to commercial real estate (“CRE”) loans, which were up $30.4 million. The majority of CRE loan growth during the quarter resulted from the completion of construction projects financed by the Company. Conversely, construction and land loans were down $20.1 million during the quarter. The increase in loans compared to June 30, 2011 relates primarily to the $182.4 million in loans added as a result of the acquisition of GS Financial Corp. (“GSFC”) in July 2011.

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


	June 30,		December 31,		Increase/(Decrease)
*(dollars in thousands)*	2012		2011		Amount			Percent
Real estate loans:
One- to four-family first mortgage	$	173,227	$	182,817	$	(9,590	)		(5	)%
Home equity loans and lines		41,535		43,665		(2,130	)		(5	)
Commercial real estate		268,445		226,999		41,446			18
Construction and land		66,042		78,994		(12,952	)		(16	)
Multi-family residential		20,141		20,125		16			—

Total real estate loans		569,390		552,600		16,790			3

Other loans:
Commercial and industrial		77,951		82,980		(5,029	)		(6	)
Consumer		32,431		30,791		1,640			5

Total other loans		110,382		113,771		(3,389	)		(3	)

Total loans	$	679,772	$	666,371	$	13,401			2	%

Nonperforming assets (“NPAs”), which includes $12.8 million in assets covered under loss sharing agreements with the FDIC (“Covered Assets”) and $10.3 million acquired from GSFC, totaled $30.3 million at June 30, 2012, a decrease of $3.8 million compared to March 31, 2012 and an increase of $10.2 million compared to June 30, 2011. The ratio of total NPAs to total assets was 3.06% at June 30, 2012, compared to 3.48% at March 31, 2012 and 2.80% at June 30, 2011. Excluding acquired assets, the ratio of NPAs was 0.90% at June 30, 2012, compared to 1.16% at March 31, 2012 and 0.19% at June 30, 2011.

The Company recorded net loan charge-offs of $1.7 million during the second quarter of 2012, compared to net loan charge-offs of $3,000 and $227,000 in the first quarter of 2012 and second quarter of 2011, respectively. The increase in net charge-offs for the second quarter of 2012 resulted primarily from a $1.4 million partial charge-off on a $5.4 million CRE loan which was downgraded further during the quarter.

The Company’s provision for loan losses for the second quarter of 2012 was $1.2 million, compared to $712,000 for the first quarter of 2012 and $265,000 for the second quarter of 2011. The elevated level of provision during the second quarter of 2012 relates primarily to the same $5.4 million CRE loan mentioned above.

Excluding acquired loans, the ratio of allowance for loan losses to total loans was 1.05% at June 30, 2012, compared to 1.22% at March 31, 2012 and 1.06% at June 30, 2011. Including acquired loans, the ratio of allowance for loan losses to total loans was 0.78% at June 30, 2012, compared to 0.86% and 0.90% at March 31, 2012 and June 30, 2011, respectively.

Investment Securities Portfolio

The Company’s investment securities portfolio totaled $155.1 million at June 30, 2012, a decrease of $8.9 million, or 5%, from March 31, 2012, and an increase of $6.9 million, or 5%, from June 30, 2011. At June 30, 2012, the Company had a net unrealized gain position on its investment securities portfolio of $4.1 million, compared to net unrealized gains of $4.0 million and $1.9 million at March 31, 2012 and June 30, 2011, respectively. At June 30, 2012, the investment securities portfolio had a modified duration of 3.6 years.

During the second quarter of 2012, the Company sold securities with an aggregate book value of $11.2 million and realized a gain of $59,000 on the transactions. The securities were sold due to their low book yields and prepayment risk.

The Company maintains a portfolio of non-agency mortgage-backed securities, which had an amortized cost of $13.7 million at June 30, 2012. Each of these securities is 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 twelfth consecutive quarter, growing $44.5 million, or 10%, during the second quarter of 2012. Total deposits were $779.2 million at June 30, 2012, an increase of $43.1 million, or 6%, from March 31, 2012, and an increase of $251.8 million, or 48%, from June 30, 2011. The Company added $193.5 million in deposits through the acquisition of GSFC in July 2011.

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)*	2012		2011		Amount			Percent
Demand deposit	$	151,770	$	127,828	$	23,942			19	%
Savings		47,018		43,671		3,347			8
Money market		185,768		180,790		4,978			3
NOW		118,550		93,679		24,871			27
Certificates of deposit		276,128		284,766		(8,638	)		(3	)

Total deposits	$	779,234	$	730,734	$	48,500			7	%

Share Repurchases

The Company completed the May 2011 share repurchase program earlier this month. Under the May 2011 program, the Company acquired 402,835 shares of the Company’s common stock at an average price of $15.15 per share.

On July 23, 2012, the Company’s Board of Directors approved a new program to repurchase up to 383,598 shares, or approximately 5%, of the Company’s outstanding common stock. Repurchases may be made by the Company in open-market or privately-negotiated transactions as, in the opinion of management, market conditions warrant.

Net Interest Income

Net interest income for the second quarter of 2012 totaled $10.0 million, essentially unchanged compared to the first quarter of 2012, and an increase of $3.0 million, or 43%, compared to the second quarter of 2011. The addition of GSFC’s interest-earning assets and interest-bearing liabilities accounted for the vast majority of the increase compared to the same quarter last year. The Company’s net interest margin was 4.70% for the second quarter of 2012, one basis point higher than the first quarter of 2012 and 14 basis points higher than the second quarter of 2011.

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, 2012					March 31, 2012					June 30, 2011
*(dollars in thousands)*	Average Balance		Average Yield/Rate			Average Balance		Average Yield/Rate			Average Balance		Average Yield/Rate
Interest-earning assets:
Loans receivable	$	674,244		6.19	%	$	672,713		6.20	%	$	445,947		6.53	%
Investment securities		152,916		2.12			155,476		2.21			145,624		2.25
Other interest-earning assets		26,504		0.53			25,160		0.55			21,371		0.65

Total interest-earning assets		853,664		5.29			853,349		5.31			612,942		5.31


Interest-bearing liabilities:
Deposits:
Savings, checking, and money market		329,371		0.39			316,004		0.45			241,960		0.50
Certificates of deposit		276,800		1.11			282,476		1.11			191,038		1.54

Total interest-bearing deposits		606,171		0.72			598,480		0.76			432,998		0.96
FHLB advances		73,488		0.97			101,473		0.71			41,010		1.12

Total interest-bearing liabilities	$	679,659		0.75		$	699,953		0.75		$	474,008		0.97


Net interest spread				4.54	%				4.56	%				4.34	%

Net interest margin				4.70	%				4.69	%				4.56	%

Noninterest Income

Noninterest income for the second quarter of 2012 totaled $1.9 million, an increase of $200,000, or 12%, compared to the first quarter of 2012 and a decrease of $202,000, or 10%, compared to the second quarter of 2011. The increase in noninterest income in the second quarter of 2012 compared to the first quarter of 2012 resulted primarily from higher gains on the sale of mortgage loans of $92,000 and gains on the sale of securities of $59,000.

The decrease in noninterest income in the second quarter of 2012 compared to the second quarter of 2011 resulted primarily from a litigation settlement of $525,000 received in the second quarter of 2011. Excluding the litigation settlement and securities gains, noninterest income increased 17% compared to the same quarter last year due primarily to higher gains on the sale of mortgage loans. Additionally, service fees and charges and bank card fees increased compared to the same quarter last year as a result of the accounts added through the acquisition of GSFC and organic customer growth.

Noninterest Expense

Noninterest expense for the second quarter of 2012 totaled $8.0 million, an increase of $234,000, or 3%, compared to the first quarter of 2012 and an increase of $1.2 million, or 18%, compared to the second quarter of 2011. The increase in noninterest expense in the second quarter of 2012 compared to the first quarter of 2012 resulted primarily from an increase in compensation and benefits of $131,000 and higher marketing and advertising, professional services and other expenses.

The increase in noninterest expense in the second quarter of 2012 compared to the second quarter of 2011 was primarily due to higher compensation and benefits, occupancy and data processing and communication expenses resulting from the addition of GSFC’s offices and employees. Additionally, expenses related to foreclosed assets increased during the second quarter of 2012 compared to the same quarter a year ago due primarily due to resolution costs related to NPAs acquired from GSFC.

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 nonrecurring noninterest income. 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


	June 30			June 30			%			March 31,			December 31,
	2012			2011			Change			2012			2011
Assets
Cash and cash equivalents	$	51,211,525		$	21,588,068			137	%	$	33,800,736		$	31,272,508
Interest-bearing deposits in banks		4,509,000			8,273,000			(45	)		4,754,000			5,583,000
Investment securities available for sale, at fair value		152,718,411			140,969,334			8			161,000,461			155,259,978
Investment securities held to maturity		2,422,574			7,253,356			(67	)		3,064,866			3,461,717
Mortgage loans held for sale		4,832,498			2,773,616			74			1,794,119			1,672,597
Loans covered by loss sharing agreements		46,827,556			68,421,716			(32	)		56,111,387			61,070,360
Noncovered loans, net of unearned income		632,944,049			381,119,264			66			622,539,181			605,301,127

Total loans		679,771,605			449,540,980			51			678,650,568			666,371,487
Allowance for loan losses		(5,314,386	)		(4,057,044	)		31			(5,813,095	)		(5,104,363	)

Total loans, net of allowance for loan losses		674,457,219			445,483,936			51			672,837,473			661,267,124

FDIC loss sharing receivable		22,827,051			30,709,836			(26	)		24,399,699			24,222,190
Office properties and equipment, net		30,618,073			23,015,352			33			30,724,675			31,763,692
Cash surrender value of bank-owned life insurance		17,033,380			16,485,001			3			16,902,453			16,771,174
Accrued interest receivable and other assets		27,885,771			20,848,648			34			30,275,634			32,515,158

Total Assets	$	988,515,502		$	717,400,147			38		$	979,554,116		$	963,789,138


Liabilities
Deposits	$	779,233,938		$	527,402,695			48	%	$	736,157,230		$	730,733,755
Federal Home Loan Bank advances		54,874,645			52,500,000			5			100,848,030			93,622,954
Accrued interest payable and other liabilities		15,375,621			3,740,456			311			4,827,764			5,147,595

Total Liabilities		849,484,204			583,643,151			46			841,833,024			829,504,304


Shareholders’ Equity
Common stock		89,453		$	89,312			—	%		89,404			89,335
Additional paid-in capital		90,069,141			88,922,459			1			90,230,748			89,741,406
Treasury stock		(17,208,855	)		(11,849,932	)		45			(15,965,319	)		(15,892,315	)
Common stock acquired by benefit plans		(7,666,096	)		(8,813,501	)		(13	)		(8,531,519	)		(8,625,513	)
Retained earnings		71,058,483			64,187,699			11			69,305,807			67,245,350
Accumulated other comprehensive income		2,689,172			1,220,959			120			2,591,971			1,726,571

Total Shareholders’ Equity		139,031,298			133,756,996			4			137,721,092			134,284,834

Total Liabilities and Shareholders’ Equity	$	988,515,502		$	717,400,147			38		$	979,554,116		$	963,789,138

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME


	For The Three Months Ended							For The Six Months Ended
	June 30,				%			June 30,					%
	2012		2011		Change			2012		2011			Change
Interest Income
Loans, including fees	$	10,383,044	$	7,265,525		43	%	$	20,754,401	$	14,426,178			44	%
Investment securities		812,148		817,359		(1	)		1,671,631		1,778,180			(6	)
Other investments and deposits		35,068		34,542		2			69,466		71,263			(3	)

Total interest income		11,230,260		8,117,426		38			22,495,498		16,275,621			38


Interest Expense
Deposits		1,084,579		1,035,004		5	%		2,216,427		2,212,053			—	%
Federal Home Loan Bank advances		177,766		115,087		54			358,602		215,726			66

Total interest expense		1,262,345		1,150,091		10			2,575,029		2,427,779			6

Net interest income		9,967,915		6,967,335		43			19,920,469		13,847,842			44
Provision for loan losses		1,160,326		264,673		338			1,872,226		366,949			410

Net interest income after provision for loan losses		8,807,589		6,702,662		31			18,048,243		13,480,893			34


Noninterest Income
Service fees and charges		583,916		545,599		7	%		1,153,858		1,020,423			13	%
Bank card fees		484,408		444,093		9			952,692		842,188			13
Gain on sale of loans, net		417,934		121,293		245			744,105		225,687			230
Income from bank-owned life insurance		130,927		146,937		(11	)		262,206		292,356			(10	)
Gain (loss) on the sale of securities, net		59,079		—		—			59,247		(166,082	)		136
Discount accretion of FDIC loss sharing receivable		175,622		231,263		(24	)		353,131		469,932			(25	)
Settlement of litigation		—		525,000		(100	)		—		525,000			(100	)
Other income		47,773		87,323		(45	)		74,335		113,906			(35	)

Total noninterest income		1,899,659		2,101,508		(10	)		3,599,574		3,323,410			8


Noninterest Expense
Compensation and benefits		4,826,649		3,915,112		23	%		9,522,358		7,913,520			20	%
Occupancy		702,003		559,165		26			1,396,945		1,124,426			24
Marketing and advertising		184,890		215,145		(14	)		336,364		376,195			(11	)
Data processing and communication		666,999		572,000		17			1,339,340		1,113,507			20
Professional fees		255,483		427,520		(40	)		487,736		847,252			(42	)
Forms, printing and supplies		140,449		147,093		(5	)		266,715		261,074			2
Franchise and shares tax		175,651		180,501		(3	)		351,302		361,001			(3	)
Regulatory fees		213,018		200,642		6			411,175		430,382			(4	)
Foreclosed assets, net		242,726		105,766		129			510,724		153,900			232
Other expenses		635,046		488,152		30			1,229,077		936,963			31

Total noninterest expense		8,042,914		6,811,096		18			15,851,736		13,518,220			17

Income before income tax expense		2,664,334		1,993,074		34			5,796,081		3,286,083			76
Income tax expense		911,659		725,627		26			1,982,948		1,223,952			62

Net income	$	1,752,675	$	1,267,447		38		$	3,813,133	$	2,062,131			85


Earnings per share - basic	$	0.25	$	0.18		39	%	$	0.55	$	0.29			90	%

Earnings per share - diluted	$	0.24	$	0.17		41		$	0.53	$	0.28			89

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION


	For The Three Months Ended June 30,						% Change			For The Three Months Ended March 31, 2012			% Change
	2012			2011			% Change			For The Three Months Ended March 31, 2012			% Change
(dollars in thousands except per share data)
EARNINGS DATA
Total interest income	$	11,230		$	8,117			38	%	$	11,265			—	%
Total interest expense		1,262			1,150			10			1,313			(4	)

Net interest income		9,968			6,967			43			9,952			—

Provision for loan losses		1,160			265			338			712			63
Total noninterest income		1,900			2,102			(10	)		1,700			12
Total noninterest expense		8,043			6,811			18			7,809			3
Income tax expense		912			726			26			1,071			(15	)

Net income	$	1,753		$	1,267			38		$	2,060			(15	)


AVERAGE BALANCE SHEET DATA
Total assets	$	963,262		$	709,360			36	%	$	965,682			—	%
Total interest-earning assets		853,680			612,942			39			853,349			—
Totals loans		674,260			445,947			51			672,713			—
Total interest-bearing deposits		606,171			432,998			40			598,480			1
Total interest-bearing liabilities		679,659			474,008			43			699,953			(3	)
Total deposits		747,148			533,640			40			724,752			3
Total shareholders’ equity		139,113			133,584			4			135,975			2

SELECTED RATIOS ⁽¹⁾
Return on average assets		0.73	%		0.71	%		3	%		0.85	%		(14	)%
Return on average equity		5.04			3.80			33			6.06			(17	)
Efficiency ratio ⁽²⁾		67.77			75.10			(10	)		67.01			1
Average equity to average assets		14.44			18.83			(23	)		14.08			3
Tier 1 leverage capital ratio⁽³⁾		12.72			15.44			(18	)		12.59			1
Total risk-based capital ratio⁽³⁾		20.70			27.44			(25	)		20.82			(1	)
Net interest margin ⁽⁴⁾		4.70			4.56			3			4.69			—

PER SHARE DATA
Basic earnings per share	$	0.25		$	0.18			39	%	$	0.30			(17	)%
Diluted earnings per share		0.24			0.17			41			0.29			(17	)
Book value at period end		18.07			16.65			9			17.74			2
Tangible book value at period end		17.76			16.44			8			17.42			2

PER SHARE DATA
Shares outstanding at period end		7,693,769			8,035,404			(4	)%		7,762,204			(1	)%
Weighted average shares outstanding
Basic		6,972,170			7,191,476			(3	)%		6,952,952			—	%
Diluted		7,234,806			7,337,358			(1	)		7,196,444			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, 2012							March 31, 2012							June 30, 2011
	Covered		Noncovered		Total			Covered		Noncovered		Total			Covered		Noncovered		Total
(dollars in thousands)
CREDIT QUALITY^(1) (2)
Nonaccrual loans	$	9,585	$	15,842	$	25,427		$	10,456	$	15,759	$	26,215		$	11,668	$	1,127	$	12,795
Accruing loans past due 90 days and over		—		—		—			—		—		—			—		—		—

Total nonperforming loans		9,585		15,842		25,427			10,456		15,759		26,215			11,668		1,127		12,795
Foreclosed assets		3,244		1,623		4,867			5,168		2,675		7,843			7,178		92		7,270

Total nonperforming assets		12,829		17,465		30,294			15,624		18,434		34,058			18,846		1,219		20,065
Performing troubled debt restructurings		20		831		851			25		543		568			30		922		952

Total nonperforming assets and troubled debt restructurings	$	12,849	$	18,296	$	31,145		$	15,649	$	18,977	$	34,626		$	18,876	$	2,141	$	21,017


Nonperforming assets to total assets						3.06	%						3.48	%						2.80	%
Nonperforming loans to total assets						2.57							2.68							1.78
Nonperforming loans to total loans						3.74							3.86							2.85
Allowance for loan losses to nonperforming assets						17.54							17.07							20.22
Allowance for loan losses to nonperforming loans						20.90							22.18							31.71
Allowance for loan losses to total loans						0.78							0.86							0.90

Year-to-date loan charge-offs					$	1,684						$	15						$	260
Year-to-date loan recoveries						22							12							30

Year-to-date net loan charge-offs					$	1,662						$	3						$	230

Annualized YTD net loan charge-offs to total loans						0.49	%						—	%						0.12	%

⁽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”.

HOME BANCORP, INC. - FORM 8-K - EX-99.1 - PRESS RELEASE - July 24, 2012

Attached files

HOME BANCORP, INC. Reports