Attached files
| file | filename |
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| 8-K - 8-K - HOME BANCORP, INC. | hbcp-20210427.htm |
For further information contact:
John W. Bordelon, Chairman of the Board, President and CEO
(337) 237-1960
| Release Date: | April 27, 2021 | ||||
| For Immediate Release | |||||
HOME BANCORP, INC. ANNOUNCES 2021 FIRST QUARTER RESULTS
AND INCREASES QUARTERLY DIVIDEND BY 5%
Lafayette, Louisiana – Home Bancorp, Inc. (Nasdaq: “HBCP”) (the “Company”), the parent company for Home Bank, N.A. (the “Bank”) (www.home24bank.com), reported financial results for the first quarter of 2021. For the quarter, the Company reported net income of $11.9 million, or $1.41 per diluted common share (“diluted EPS”), up $1.3 million from $10.6 million, or $1.24 diluted EPS, for the fourth quarter of 2020.
“Our first quarter results were strong, reflecting improved credit quality, increasing gain on sale of loans due to the low interest rate environment and a reversal of loan loss provisions as a result of the improving economic outlook”, said John W. Bordelon, Chairman, President and Chief Executive Officer of the Company and the Bank. “We have actively participated in the second round of PPP authorized earlier this year. We originated $111.5 million under the second round of PPP in the quarter and assisted in the forgiveness of first round PPP loans.”
“Our economy is still feeling some effects of COVID, but for the most part, a large segment of the region is very productive. The New Orleans region is still struggling to return to pre-COVID levels. Government stimulus money created a rapid rise in liquidity for our customers and the Bank. Our strong capital position enables us to support the needs of our customers as the pandemic becomes less of a threat. Our employees have remained committed to supporting customers and their communities throughout this past year and stand ready for what we expect to be a strong second half of the year.”
COVID-19 Impacts
Banking operations remain unencumbered by state and local government COVID-19 restrictions. We have continued to protect our employees and customers by working remotely, enhancing cleaning procedures, and enacting several other measures to reduce the risk of transmission of the virus. State government imposed COVID-19 restrictions were relaxed in March 2021 within our Louisiana and Mississippi markets. Nearly all restrictions were removed in Mississippi, while Louisiana moved to Phase 3 of its reopening plan. Restrictions in Louisiana primarily include mask mandates and place capacity limits for certain businesses.
During the first quarter of 2021, the Company funded 1,451 loans totaling $111.5 million under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"). During 2020, the Company funded 3,072 PPP loans totaling $262.2 million. At March 31, 2021, the total recorded net investment in PPP loans was $235.7 million, of which 2,533 loans with an aggregate outstanding balance of $79.1 million were for amounts of $150,000 or less.
To give immediate financial support to our customers, the Company began providing principal and/or interest payment deferral options in March 2020. At March 31, 2021, $27.7 million, or 1% of total loans were under deferral agreements. The level of COVID-19 related deferrals formerly totaled $558.8 million, or 28% of total loans, at June 30, 2020. Of the loans that have exited deferral agreements, $443.0 million, or 99%, were current and performing as of March 31, 2021.
1
First Quarter 2021 Highlights
•Net income totaled $11.9 million, up $1.3 million, or 13%, from the prior quarter primarily due to the release of $1.7 million from the allowance for loan losses during the first quarter of 2021.
•Return on average assets, return on average equity and return on average tangible common equity were 1.85%, 14.80% and 18.70%, respectively.
•The Company recorded a $1.7 million reversal to the allowance for loan losses primarily due to improvements in our assessment of the economic impact of the COVID-19 pandemic on our loan portfolio.
•Loan income from the recognition of deferred PPP lender fees totaled $3.3 million, up $1.1 million from the prior quarter.
•Loans totaled $2.0 billion at March 31, 2021, down $86,000, or less than 1%, from December 31, 2020. PPP loans totaled $235.7 million at March 31, 2021, up $14.5 million, or 7%, from December 31, 2020.
•The allowance for loan losses totaled $30.0 million, or 1.51% of total loans, at March 31, 2021. Excluding PPP loans, the ratio of allowance for loan losses to total loans was 1.72%, at such date.
•Nonperforming assets totaled $17.3 million, or 0.64% of total assets, down $2.7 million, or 14%, from December 31, 2020.
•Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.89% and 15.37%, respectively, at March 31, 2021, compared to 9.68% and 15.18%, respectively, at December 31, 2020.
•The net interest margin was 4.14% for the first quarter of 2021, up three basis points from the fourth quarter of 2020 primarily due to a decrease in the average cost of interest-bearing deposits.
•The average yield on total interest-bearing deposits was 0.42% for the first quarter of 2021, down eight basis points from the fourth quarter of 2020.
2
Loans
Loans totaled $2.0 billion at March 31, 2021, down $86,000, or less than 1%, from December 31, 2020. PPP loans, included in commercial and industrial loans, increased $14.5 million, or 7%, from December 31, 2020. The following table summarizes the changes in the Company’s loan portfolio from December 31, 2020 to March 31, 2021.
| (dollars in thousands) | 3/31/2021 | 12/31/2020 | Increase (Decrease) | |||||||||||||||||||||||
| Real estate loans: | ||||||||||||||||||||||||||
| One- to four-family first mortgage | $ | 380,207 | $ | 395,638 | $ | (15,431) | (4) | % | ||||||||||||||||||
| Home equity loans and lines | 65,556 | 67,700 | (2,144) | (3) | ||||||||||||||||||||||
| Commercial real estate | 744,971 | 750,623 | (5,652) | (1) | ||||||||||||||||||||||
| Construction and land | 242,156 | 221,823 | 20,333 | 9 | ||||||||||||||||||||||
| Multi-family residential | 82,726 | 87,332 | (4,606) | (5) | ||||||||||||||||||||||
| Total real estate loans | 1,515,616 | 1,523,116 | (7,500) | — | ||||||||||||||||||||||
| Other loans: | ||||||||||||||||||||||||||
| Commercial and industrial | 428,019 | 417,926 | 10,093 | 2 | ||||||||||||||||||||||
| Consumer | 36,233 | 38,912 | (2,679) | (7) | ||||||||||||||||||||||
| Total other loans | 464,252 | 456,838 | 7,414 | 2 | ||||||||||||||||||||||
| Total loans | $ | 1,979,868 | $ | 1,979,954 | $ | (86) | — | % | ||||||||||||||||||
During the first quarter of 2021, construction and land ("C&D") loan growth was offset by pay-downs across certain other segments of the loan portfolio. In particular, the Company continued to experience declines in residential mortgages primarily due to refinances as borrowers sought to acquire lower interest rates. C&D loan growth was primarily driven by non-residential construction projects in our New Orleans and Northshore markets.
Credit Quality and Allowance for Credit Losses
At March 31, 2021, loans under interest and/ or principal payment deferral agreements due to the COVID-19 crisis totaled $27.7 million, or 1% of total loans, down from $36.0 million, or 2% of total loans, at December 31, 2020. Of the loans that have exited deferral agreements, $443.0 million, or 99%, were current and performing as of March 31, 2021.
Nonperforming assets (“NPAs”) totaled $17.3 million, or 0.64% of total assets, at March 31, 2021, down $2.7 million, or 14%, from $20.0 million, or 0.77% of total assets, at December 31, 2020. During the first quarter of 2021, the Company recorded net loan charge-offs of $1.3 million. Net charge-offs during the first quarter were primarily attributable to an acquired hotel loan and one originated commercial loan relationship, both of which were nonperforming prior to the COVID-19 crisis.
The Company released $1.7 million of allowance for loan losses in first quarter of 2021 primarily due to improvements in our assessment of the economic impact of the COVID-19 pandemic on our loan portfolio. At March 31, 2021, the allowance for loan losses totaled $30.0 million, or 1.51% of total loans, compared to $33.0 million, or 1.66% of total loans, at December 31, 2020. Excluding PPP loans, the ratios of allowance for loan losses to total loans were 1.72% and 1.87% at March 31, 2021 and December 31, 2020, respectively. Changes in expected losses consider various factors including the changing economic activity, potential mitigating effects of governmental stimulus, the duration of the health crisis, customer specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.
3
The following table provides a summary of the loan portfolio and related reserves at March 31, 2021. We have separately identified certain information regarding PPP loans which, due to the existence of full repayment guarantees from the SBA as well as the likelihood that the vast majority of such loans will be forgiven, we believe entail minimal credit risk to the Company.
| Loans | Allowance for Credit Losses | |||||||||||||||||||||||||||||||
| (dollars in thousands) | Total Loans | PPP Loans | Total ACL | ACL to Total Loans | ACL to Total Non-PPP Loans | |||||||||||||||||||||||||||
| March 31, 2021 | ||||||||||||||||||||||||||||||||
| Retail CRE | $ | 184,807 | $ | — | $ | 6,027 | 3.26 | % | 3.26 | % | ||||||||||||||||||||||
| Hotels and short-term rentals | 102,282 | 7,168 | 5,052 | 4.94 | 5.31 | |||||||||||||||||||||||||||
| Restaurants and bars | 104,063 | 38,439 | 2,631 | 2.53 | 4.01 | |||||||||||||||||||||||||||
| Energy | 44,651 | 14,805 | 1,412 | 3.16 | 4.73 | |||||||||||||||||||||||||||
| Credit cards | 3,570 | — | 358 | 10.03 | 10.03 | |||||||||||||||||||||||||||
| Other loans | 1,540,495 | 175,269 | 14,513 | 0.94 | 1.06 | |||||||||||||||||||||||||||
| Total | $ | 1,979,868 | $ | 235,681 | $ | 29,993 | 1.51 | % | 1.72 | % | ||||||||||||||||||||||
Unfunded lending commitments(1) | — | — | 1,425 | — | — | |||||||||||||||||||||||||||
| Total | $ | 1,979,868 | $ | 235,681 | $ | 31,418 | 1.59 | % | 1.80 | % | ||||||||||||||||||||||
(1)The ACL on unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.
Deposits
Total deposits were $2.3 billion at March 31, 2021, up $114.5 million, or 5%, from December 31, 2020. The following table summarizes the changes in the Company’s deposits from December 31, 2020 to March 31, 2021.
| (dollars in thousands) | 3/31/2021 | 12/31/2020 | Increase (Decrease) | |||||||||||||||||||||||
| Demand deposits | $ | 687,254 | $ | 615,700 | $ | 71,554 | 12 | % | ||||||||||||||||||
| Savings | 272,021 | 250,165 | 21,856 | 9 | ||||||||||||||||||||||
| Money market | 346,662 | 333,078 | 13,584 | 4 | ||||||||||||||||||||||
| NOW | 679,130 | 646,085 | 33,045 | 5 | ||||||||||||||||||||||
| Certificates of deposit | 343,298 | 368,793 | (25,495) | (7) | ||||||||||||||||||||||
| Total deposits | $ | 2,328,365 | $ | 2,213,821 | $ | 114,544 | 5 | % | ||||||||||||||||||
The average rate on interest-bearing deposits decreased eight basis points from 0.50% for the fourth quarter of 2021 to 0.42% for the first quarter of 2021. At March 31, 2021, certificates of deposit maturing within the next 12 months totaled $289.7 million.
4
Net Interest Income
The net interest margin ("NIM") increased three basis points from 4.11% for the fourth quarter of 2020 to 4.14% for the first quarter of 2021 primarily due to a decrease in the cost of interest-bearing deposits. The average yield on total interest-bearing deposits was 0.42% for the first quarter of 2021, down eight basis points from the fourth quarter of 2020.
The average loan yield was 5.21% for the first quarter of 2021, up one basis point from the fourth quarter of 2020. Loan income from the recognition of deferred PPP lender fees totaled $3.3 million during the first quarter of 2021, up $1.1 million, or 52%, compared to the fourth quarter of 2020. As a result, PPP loans positively impacted the average loan yield by 18 basis points and the NIM by 26 basis points during the the first quarter of 2021. During the fourth quarter of 2020, PPP loans decreased the average loan yield by 11 basis points and increased the NIM by 5 basis points.
At March 31, 2021, the total recorded net investment in PPP loans was $235.7 million, up $14.5 million or 7% from December 31, 2020. Unrecognized PPP lender fees totaled $8.3 million at March 31, 2021, which will be amortized into interest income over the life of the loans.
Loan accretion income from acquired loans totaled $736,000 for the first quarter of 2021, down $1.0 million, or 57%, compared to $1.7 million for the fourth quarter of 2020. During the fourth quarter of 2020, the Company received pay-downs on acquired CRE and residential mortgage loans, which accelerated the accretion of discount into interest income on loans.
The following table summarizes 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 have been calculated using a marginal tax rate of 21%.
| Quarter Ended | ||||||||||||||||||||||||||||||||||||||
| 3/31/2021 | 12/31/2020 | |||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Average Balance | Interest | Average Yield/ Rate | Average Balance | Interest | Average Yield/ Rate | ||||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
| Loans receivable | $ | 1,987,264 | $ | 25,817 | 5.21 | % | $ | 1,984,969 | $ | 26,267 | 5.20 | % | ||||||||||||||||||||||||||
Investment securities (TE) | 261,292 | 1,012 | 1.59 | 246,547 | 1,002 | 1.66 | ||||||||||||||||||||||||||||||||
| Other interest-earning assets | 183,771 | 99 | 0.22 | 182,833 | 99 | 0.22 | ||||||||||||||||||||||||||||||||
| Total interest-earning assets | $ | 2,432,327 | $ | 26,928 | 4.44 | % | $ | 2,414,349 | $ | 27,368 | 4.46 | % | ||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||||||||||
| Savings, checking, and money market | $ | 1,240,933 | $ | 881 | 0.29 | % | $ | 1,217,430 | $ | 970 | 0.32 | % | ||||||||||||||||||||||||||
| Certificates of deposit | 352,501 | 775 | 0.89 | 375,597 | 1,017 | 1.08 | ||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 1,593,434 | 1,656 | 0.42 | 1,593,027 | 1,987 | 0.50 | ||||||||||||||||||||||||||||||||
| Other borrowings | 5,706 | 53 | 3.78 | 5,539 | 53 | 3.81 | ||||||||||||||||||||||||||||||||
| FHLB advances | 28,424 | 124 | 1.74 | 29,742 | 129 | 1.74 | ||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 1,627,564 | $ | 1,833 | 0.46 | % | $ | 1,628,308 | $ | 2,169 | 0.53 | % | ||||||||||||||||||||||||||
Net interest spread (TE) | 3.98 | % | 3.93 | % | ||||||||||||||||||||||||||||||||||
Net interest margin (TE) | 4.14 | % | 4.11 | % | ||||||||||||||||||||||||||||||||||
5
Noninterest Income
Noninterest income for the first quarter of 2021 totaled $4.1 million, up $10,000, or less than 1%, from the fourth quarter of 2020. Increases in gains on the sale of loans (up $86,000) and income from bank card fees (up $33,000), were partially offset by decreases in income from bank-owned life insurance (down $51,000) and service fees and charges on deposit accounts (down $45,000). During the fourth quarter of 2020, the Company received a life insurance benefit of $46,000 following the death of a former employee.
Noninterest Expense
Noninterest expense for the first quarter of 2021 totaled $16.0 million, down $30,000, or less than 1%, from the fourth quarter of 2020.
Compensation and benefits expense was up $247,000 from the fourth quarter of 2020 primarily due to annual bonuses paid during the first quarter of 2021 and an increase in health insurance cost.
Marketing and advertising expense was down $215,000 from the fourth quarter of 2020 primarily due to a general decrease in all marketing related activities.
Other noninterest expense was down $114,000 from the fourth quarter of 2020 primarily due to decreases in fraud losses and losses on overdrawn deposit accounts.
Dividend and Share Repurchases
The Company announced that its Board of Directors increased its quarterly cash dividend on shares of its common stock to $0.23 per share payable on May 21, 2021, to shareholders of record as of May 10, 2021.
The Company repurchased 41,477 shares of its common stock during the first quarter of 2021 at an average price per share of $28.58. An additional 258,603 shares remain eligible for purchase under the 2020 Repurchase Plan. The book value per share and tangible book value per share of the Company’s common stock was $37.73 and $30.52, respectively, at March 31, 2021.
6
Non-GAAP Reconciliation
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 intangible assets and PPP loans. Management believes the presentation of this non-GAAP financial information provides useful information that is helpful to a full understanding of the Company’s financial position and operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP financial information presented by other companies. A reconciliation on non-GAAP information included herein to GAAP is presented below.
| Quarter Ended | ||||||||||||||||||||
| (dollars in thousands, except per share data) | 3/31/2021 | 12/31/2020 | 3/31/2020 | |||||||||||||||||
| Reported net income | $ | 11,928 | $ | 10,580 | $ | 2,482 | ||||||||||||||
| Add: Core deposit intangible amortization, net tax | 237 | 258 | 279 | |||||||||||||||||
| Non-GAAP tangible income | $ | 12,165 | $ | 10,838 | $ | 2,761 | ||||||||||||||
| Total assets | $ | 2,707,517 | $ | 2,591,850 | $ | 2,248,251 | ||||||||||||||
| Less: Intangible assets | 62,813 | 63,112 | 64,119 | |||||||||||||||||
| Non-GAAP tangible assets | $ | 2,644,704 | $ | 2,528,738 | $ | 2,184,132 | ||||||||||||||
| Total shareholders’ equity | $ | 328,610 | $ | 321,842 | $ | 312,813 | ||||||||||||||
| Less: Intangible assets | 62,813 | 63,112 | 64,119 | |||||||||||||||||
| Non-GAAP tangible shareholders’ equity | $ | 265,797 | $ | 258,730 | $ | 248,694 | ||||||||||||||
| Total loans | $ | 1,979,868 | $ | 1,979,954 | $ | 1,739,142 | ||||||||||||||
| Less: PPP loans | 235,681 | 221,220 | — | |||||||||||||||||
| Total loans excluding PPP loans | $ | 1,744,187 | $ | 1,758,734 | $ | 1,739,142 | ||||||||||||||
| Allowance for loan losses to total loans | 1.51 | % | 1.66 | % | 1.64 | % | ||||||||||||||
| Less: PPP loans | 0.20 | 0.21 | — | |||||||||||||||||
| Non-GAAP allowance for loan losses to total loans | 1.72 | % | 1.87 | % | 1.64 | % | ||||||||||||||
| Return on average equity | 14.80 | % | 13.22 | % | 3.15 | % | ||||||||||||||
| Add: Average intangible assets | 3.90 | 3.68 | 1.26 | |||||||||||||||||
| Non-GAAP return on average tangible common equity | 18.70 | % | 16.90 | % | 4.41 | % | ||||||||||||||
| Common equity ratio | 12.14 | % | 12.42 | % | 13.91 | % | ||||||||||||||
| Less: Intangible assets | 2.09 | 2.19 | 2.52 | |||||||||||||||||
| Non-GAAP tangible common equity ratio | 10.05 | % | 10.23 | % | 11.39 | % | ||||||||||||||
| Book value per share | $ | 37.73 | $ | 36.82 | $ | 34.50 | ||||||||||||||
| Less: Intangible assets | 7.21 | 7.22 | 7.07 | |||||||||||||||||
| Non-GAAP tangible book value per share | $ | 30.52 | $ | 29.60 | $ | 27.43 | ||||||||||||||
7
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, 2020 describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for credit losses, the impact of the COVID-19 pandemic, 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.
8
| HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||
| CONDENSED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| (dollars in thousands) | 3/31/2021 | 12/31/2020 | % Change | 3/31/2020 | ||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 282,700 | $ | 187,952 | 50 | % | $ | 64,102 | ||||||||||||||||||
| Interest-bearing deposits in banks | 349 | 349 | — | 449 | ||||||||||||||||||||||
| Investment securities available for sale, at fair value | 274,965 | 254,752 | 8 | 265,646 | ||||||||||||||||||||||
| Investment securities held to maturity | 2,126 | 2,934 | (28) | 6,607 | ||||||||||||||||||||||
| Mortgage loans held for sale | 5,304 | 9,559 | (45) | 9,753 | ||||||||||||||||||||||
| Loans, net of unearned income | 1,979,868 | 1,979,954 | — | 1,739,142 | ||||||||||||||||||||||
| Allowance for loan losses | (29,993) | (32,963) | (9) | (28,490) | ||||||||||||||||||||||
| Total loans, net of allowance for loan losses | 1,949,875 | 1,946,991 | — | 1,710,652 | ||||||||||||||||||||||
| Office properties and equipment, net | 45,138 | 45,497 | (1) | 46,541 | ||||||||||||||||||||||
| Cash surrender value of bank-owned life insurance | 40,559 | 40,334 | 1 | 39,725 | ||||||||||||||||||||||
| Goodwill and core deposit intangibles | 62,813 | 63,112 | — | 64,119 | ||||||||||||||||||||||
| Accrued interest receivable and other assets | 43,688 | 40,370 | 8 | 40,657 | ||||||||||||||||||||||
| Total Assets | $ | 2,707,517 | $ | 2,591,850 | 4 | $ | 2,248,251 | |||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||
| Deposits | $ | 2,328,365 | $ | 2,213,821 | 5 | % | $ | 1,857,501 | ||||||||||||||||||
| Other Borrowings | 5,539 | 5,539 | — | 5,539 | ||||||||||||||||||||||
| Federal Home Loan Bank advances | 28,106 | 28,824 | (2) | 54,319 | ||||||||||||||||||||||
| Accrued interest payable and other liabilities | 16,897 | 21,824 | (23) | 18,079 | ||||||||||||||||||||||
| Total Liabilities | 2,378,907 | 2,270,008 | 5 | 1,935,438 | ||||||||||||||||||||||
| Shareholders' Equity | ||||||||||||||||||||||||||
| Common stock | 87 | 87 | — | % | 91 | |||||||||||||||||||||
| Additional paid-in capital | 165,155 | 164,988 | — | 167,249 | ||||||||||||||||||||||
| Common stock acquired by benefit plans | (2,695) | (2,789) | 3 | (3,063) | ||||||||||||||||||||||
| Retained earnings | 163,507 | 154,282 | 6 | 143,114 | ||||||||||||||||||||||
| Accumulated other comprehensive income | 2,556 | 5,274 | (52) | 5,422 | ||||||||||||||||||||||
| Total Shareholders' Equity | 328,610 | 321,842 | 2 | 312,813 | ||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,707,517 | $ | 2,591,850 | 4 | $ | 2,248,251 | |||||||||||||||||||
9
| HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||||||||
| CONDENSED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | 3/31/2021 | 12/31/2020 | % Change | 3/31/2020 | % Change | |||||||||||||||||||||||||||
| Interest Income | ||||||||||||||||||||||||||||||||
| Loans, including fees | $ | 25,817 | $ | 26,267 | (2) | % | $ | 23,699 | 9 | % | ||||||||||||||||||||||
| Investment securities | 1,012 | 1,002 | 1 | 1,412 | (28) | |||||||||||||||||||||||||||
Other investments and deposits | 99 | 99 | — | 138 | (28) | |||||||||||||||||||||||||||
| Total interest income | 26,928 | 27,368 | (2) | 25,249 | 7 | |||||||||||||||||||||||||||
| Interest Expense | ||||||||||||||||||||||||||||||||
| Deposits | 1,656 | 1,987 | (17) | % | 3,667 | (55) | % | |||||||||||||||||||||||||
| Other borrowings | 53 | 53 | — | 53 | — | |||||||||||||||||||||||||||
Federal Home Loan Bank advances | 124 | 129 | (4) | 206 | (40) | |||||||||||||||||||||||||||
| Total interest expense | 1,833 | 2,169 | (15) | 3,926 | (53) | |||||||||||||||||||||||||||
| Net interest income | 25,095 | 25,199 | — | 21,323 | 18 | |||||||||||||||||||||||||||
| (Reversal) provision for loan losses | (1,703) | — | — | 6,257 | (127) | |||||||||||||||||||||||||||
| Net interest income after (reversal) provision for loan losses | 26,798 | 25,199 | 6 | 15,066 | 78 | |||||||||||||||||||||||||||
| Noninterest Income | ||||||||||||||||||||||||||||||||
| Service fees and charges | 1,072 | 1,117 | (4) | % | 1,464 | (27) | % | |||||||||||||||||||||||||
| Bank card fees | 1,306 | 1,273 | 3 | 1,137 | 15 | |||||||||||||||||||||||||||
| Gain on sale of loans, net | 1,168 | 1,082 | 8 | 297 | 293 | |||||||||||||||||||||||||||
Income from bank-owned life insurance | 225 | 276 | (18) | 259 | (13) | |||||||||||||||||||||||||||
| Loss on sale of assets, net | — | — | — | 2 | (100) | |||||||||||||||||||||||||||
| Other income | 289 | 302 | (4) | 199 | 45 | |||||||||||||||||||||||||||
| Total noninterest income | 4,060 | 4,050 | — | 3,358 | 21 | |||||||||||||||||||||||||||
| Noninterest Expense | ||||||||||||||||||||||||||||||||
| Compensation and benefits | 9,664 | 9,417 | 3 | % | 9,416 | 3 | % | |||||||||||||||||||||||||
| Occupancy | 1,696 | 1,719 | (1) | 1,736 | (2) | |||||||||||||||||||||||||||
| Marketing and advertising | 171 | 386 | (56) | 298 | (43) | |||||||||||||||||||||||||||
Data processing and communication | 1,986 | 1,913 | 4 | 1,819 | 9 | |||||||||||||||||||||||||||
| Professional fees | 234 | 187 | 25 | 213 | 10 | |||||||||||||||||||||||||||
| Forms, printing and supplies | 159 | 154 | 3 | 171 | (7) | |||||||||||||||||||||||||||
| Franchise and shares tax | 360 | 331 | 9 | 389 | (7) | |||||||||||||||||||||||||||
| Regulatory fees | 379 | 373 | 2 | 116 | 227 | |||||||||||||||||||||||||||
| Foreclosed assets, net | 123 | 181 | (32) | 17 | 624 | |||||||||||||||||||||||||||
Amortization of acquisition intangible | 300 | 327 | (8) | 353 | (15) | |||||||||||||||||||||||||||
| Other expenses | 894 | 1,008 | (11) | 888 | 1 | |||||||||||||||||||||||||||
| Total noninterest expense | 15,966 | 15,996 | — | 15,416 | 4 | |||||||||||||||||||||||||||
Income before income tax expense | 14,892 | 13,253 | 12 | 3,008 | 395 | |||||||||||||||||||||||||||
| Income tax expense | 2,964 | 2,673 | 11 | 526 | 463 | |||||||||||||||||||||||||||
| Net income | $ | 11,928 | $ | 10,580 | 13 | $ | 2,482 | 381 | ||||||||||||||||||||||||
| Earnings per share - basic | $ | 1.41 | $ | 1.25 | 13 | % | $ | 0.27 | 422 | % | ||||||||||||||||||||||
| Earnings per share - diluted | $ | 1.41 | $ | 1.24 | 14 | % | $ | 0.27 | 422 | % | ||||||||||||||||||||||
Cash dividends declared per common share | $ | 0.22 | $ | 0.22 | — | % | $ | 0.22 | — | % | ||||||||||||||||||||||
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| HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||||||||
| SUMMARY FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | 3/31/2021 | 12/31/2020 | % Change | 3/31/2020 | % Change | |||||||||||||||||||||||||||
| EARNINGS DATA | ||||||||||||||||||||||||||||||||
| Total interest income | $ | 26,928 | $ | 27,368 | (2) | % | $ | 25,249 | 7 | % | ||||||||||||||||||||||
| Total interest expense | 1,833 | 2,169 | (15) | 3,926 | (53) | |||||||||||||||||||||||||||
| Net interest income | 25,095 | 25,199 | — | 21,323 | 18 | |||||||||||||||||||||||||||
| Provision for loan losses | (1,703) | — | — | 6,257 | (127) | |||||||||||||||||||||||||||
| Total noninterest income | 4,060 | 4,050 | — | 3,358 | 21 | |||||||||||||||||||||||||||
| Total noninterest expense | 15,966 | 15,996 | — | 15,416 | 4 | |||||||||||||||||||||||||||
| Income tax expense | 2,964 | 2,673 | 11 | 526 | 463 | |||||||||||||||||||||||||||
| Net income | $ | 11,928 | $ | 10,580 | 13 | $ | 2,482 | 381 | ||||||||||||||||||||||||
| AVERAGE BALANCE SHEET DATA | ||||||||||||||||||||||||||||||||
| Total assets | $ | 2,620,664 | $ | 2,599,375 | 1 | % | $ | 2,218,915 | 18 | % | ||||||||||||||||||||||
| Total interest-earning assets | 2,432,327 | 2,414,349 | 1 | 2,026,266 | 20 | |||||||||||||||||||||||||||
| Total loans | 1,987,264 | 1,984,969 | — | 1,735,224 | 15 | |||||||||||||||||||||||||||
| Total interest-bearing deposits | 1,593,434 | 1,593,027 | — | 1,381,698 | 15 | |||||||||||||||||||||||||||
| Total interest-bearing liabilities | 1,627,564 | 1,628,308 | — | 1,432,966 | 14 | |||||||||||||||||||||||||||
| Total deposits | 2,241,918 | 2,226,526 | 1 | 1,833,848 | 22 | |||||||||||||||||||||||||||
| Total shareholders' equity | 326,829 | 318,404 | 3 | 316,353 | 3 | |||||||||||||||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||||||||||||||
| Earnings per share - basic | $ | 1.41 | $ | 1.25 | 13 | % | $ | 0.27 | 422 | % | ||||||||||||||||||||||
| Earnings per share - diluted | 1.41 | 1.24 | 14 | 0.27 | 422 | |||||||||||||||||||||||||||
| Book value at period end | 37.73 | 36.82 | 2 | 34.50 | 9 | |||||||||||||||||||||||||||
| Tangible book value at period end | 30.52 | 29.60 | 3 | 27.43 | 11 | |||||||||||||||||||||||||||
| Shares outstanding at period end | 8,709,631 | 8,740,104 | — | 9,067,920 | (4) | |||||||||||||||||||||||||||
| Weighted average shares outstanding | ||||||||||||||||||||||||||||||||
| Basic | 8,436,624 | 8,484,785 | (1) | % | 8,883,261 | (5) | % | |||||||||||||||||||||||||
| Diluted | 8,476,445 | 8,508,740 | — | 8,927,448 | (5) | |||||||||||||||||||||||||||
SELECTED RATIOS (1) | ||||||||||||||||||||||||||||||||
| Return on average assets | 1.85 | % | 1.62 | % | 14 | % | 0.45 | % | 311 | % | ||||||||||||||||||||||
| Return on average equity | 14.80 | 13.22 | 12 | 3.15 | 370 | |||||||||||||||||||||||||||
| Common equity ratio | 12.14 | 12.42 | (2) | 13.91 | (13) | |||||||||||||||||||||||||||
Efficiency ratio (2) | 54.76 | 54.69 | — | 62.46 | (12) | |||||||||||||||||||||||||||
| Average equity to average assets | 12.47 | 12.25 | 2 | 14.26 | (13) | |||||||||||||||||||||||||||
Tier 1 leverage capital ratio (3) | 9.89 | 9.68 | 2 | 10.84 | (9) | |||||||||||||||||||||||||||
Total risk-based capital ratio (3) | 15.37 | 15.18 | 1 | 14.88 | 3 | |||||||||||||||||||||||||||
Net interest margin (4) | 4.14 | 4.11 | 1 | 4.18 | (1) | |||||||||||||||||||||||||||
SELECTED NON-GAAP RATIOS (1) | ||||||||||||||||||||||||||||||||
Tangible common equity ratio (5) | 10.05 | % | 10.23 | % | (2) | % | 11.39 | % | (12) | % | ||||||||||||||||||||||
Return on average tangible common equity (6) | 18.70 | 16.90 | 11 | 4.41 | 324 | |||||||||||||||||||||||||||
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(1)With the exception of end-of-period ratios, all ratios are based on average daily 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 preliminary end-of-period ratios for the Bank only and are subject to change.
(4)Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%.
(5)Tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. See "Non-GAAP Reconciliation" for additional information.
(6)Return on average tangible common equity is net income plus amortization of core deposit intangible, net of taxes, divided by average common shareholders' equity less average intangible assets. See "Non-GAAP Reconciliation" for additional information.
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| HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SUMMARY CREDIT QUALITY INFORMATION | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3/31/2021 | 12/31/2020 | 3/31/2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Originated | Acquired | Total | Originated | Acquired | Total | Originated | Acquired | Total | |||||||||||||||||||||||||||||||||||||||||||||||
CREDIT QUALITY (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual loans(2) | $ | 8,735 | $ | 6,958 | $ | 15,693 | $ | 9,929 | $ | 8,748 | $ | 18,677 | $ | 15,235 | $ | 11,686 | $ | 26,921 | ||||||||||||||||||||||||||||||||||||||
| Accruing loans past due 90 days and over | — | — | — | 2 | — | 2 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Total nonperforming loans | 8,735 | 6,958 | 15,693 | 9,931 | 8,748 | 18,679 | 15,235 | 11,686 | 26,921 | |||||||||||||||||||||||||||||||||||||||||||||||
| Foreclosed assets and ORE | 1,082 | 499 | 1,581 | 422 | 880 | 1,302 | 978 | 1,628 | 2,606 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total nonperforming assets | 9,817 | 7,457 | 17,274 | 10,353 | 9,628 | 19,981 | 16,213 | 13,314 | 29,527 | |||||||||||||||||||||||||||||||||||||||||||||||
| Performing troubled debt restructurings | 2,042 | 971 | 3,013 | 1,512 | 573 | 2,085 | 989 | 695 | 1,684 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total nonperforming assets and troubled debt restructurings | $ | 11,859 | $ | 8,428 | $ | 20,287 | $ | 11,865 | $ | 10,201 | $ | 22,066 | $ | 17,202 | $ | 14,009 | $ | 31,211 | ||||||||||||||||||||||||||||||||||||||
| Nonperforming assets to total assets | 0.64 | % | 0.77 | % | 1.31 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Nonperforming loans to total assets | 0.58 | 0.72 | 1.20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nonperforming loans to total loans | 0.79 | 0.94 | 1.55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan losses to nonperforming assets | 173.63 | 164.97 | 96.49 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan losses to nonperforming loans | 191.12 | 176.47 | 105.83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan losses to total loans | 1.51 | 1.66 | 1.64 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses to total loans(4) | 1.59 | 1.74 | 1.72 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year-to-date loan charge-offs | $ | 1,330 | $ | 2,601 | $ | 388 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Year-to-date loan recoveries | 63 | 335 | 120 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year-to-date net loan charge-offs | $ | 1,267 | $ | 2,266 | $ | 268 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Annualized YTD net loan charge-offs to average loans | 0.26 | % | 0.12 | % | 0.06 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
(1)It is our policy to cease accruing interest on loans 90 days or more past due. Nonperforming assets consist of nonperforming loans, foreclosed assets and surplus real estate (ORE). Foreclosed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure. ORE consists of closed or unused bank buildings.
(2)Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $5.0 million, $6.5 million and $8.7 million at March 31, 2021, December 31, 2020 and March 31, 2020, respectively. Acquired restructured loans placed on nonaccrual totaled $3.7 million, $3.5 million and $2.8 million at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.
(3)The allowance for credit losses includes $1.4 million for unfunded lending commitments at March 31, 2021 and December 31, 2020. The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.
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