8-K
HOME BANCORP, INC. (HBCP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported) | January 26, 2021 | |
|---|---|---|
| Home Bancorp, Inc. | ||
| --- | ||
| (Exact name of registrant as specified in its charter) | ||
| Louisiana | 001-34190 | 71-1051785 |
| --- | --- | --- |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 503 Kaliste Saloom Road, Lafayette, Louisiana | 70508 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) | |
| Registrant’s telephone number, including area code | (337) 237-1960 | |
| --- | --- | |
| N/A | ||
| --- | ||
| (Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock | HBCP | Nasdaq Stock Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition |
|---|
On January 26, 2021, the Registrant announced its results of operations for the quarter ended December 31, 2020. A copy of the related press release (the "Press Release") is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. The Press Release attached hereto is being furnished to the SEC and shall not be deemed "filed" for any purpose except as otherwise provided herein.
| Item 8.01 | Other Events |
|---|
On January 26, 2021, the Registrant announced that its Board of Directors declared a cash dividend in the amount of $0.22 per share. The cash dividend will be paid on February 19, 2021 to shareholders of record at the close of business on February 8, 2021.
| Item 9.01 | Financial Statements and Exhibits |
|---|
(a)Not applicable.
(b)Not applicable.
(c)Not applicable.
(d)Exhibits
The following exhibit is filed herewith.
| Exhibit Number | Description |
|---|---|
| 99.1 | Press Release - Results of Operations and Financial Condition, dated January 26, 2021. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HOME BANCORP, INC. | ||
|---|---|---|
| Date: January 26, 2021 | By: | /s/ John W. Bordelon |
| John W. Bordelon | ||
| Chairman of the Board, President and Chief Executive Officer |
EXHIBIT INDEX
| Exhibit Number | Description |
|---|---|
| 99.1 | Press Release - Results of Operations and Financial Condition, dated January 26, 2021. |
Document
For further information contact:
John W. Bordelon, Chairman of the Board, President and CEO
(337) 237-1960
| Release Date: | January 26, 2021 |
|---|---|
| For Immediate Release |
HOME BANCORP ANNOUNCES 2020 FOURTH QUARTER RESULTS
AND DECLARES QUARTERLY DIVIDEND
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 fourth quarter of 2020. For the quarter, the Company reported net income of $11.6 million, or $1.36 per diluted common share (“diluted EPS”), up $2.8 million from $8.8 million, or $1.01 diluted EPS, for the third quarter of 2020.
“2020 was a very challenging year for the Company and our customers with the impact of the COVID-19 pandemic and economic crisis”, said John W. Bordelon, Chairman, President and Chief Executive Officer of the Company and the Bank. “The Bank remains well positioned with the reserve builds we made in the first half of 2020 to withstand potential losses given the impact of the ongoing COVID-19 pandemic on economic conditions and credit quality in our markets.”
“I am proud of the commitment by our employees to serve our communities and remain focused on loan and deposit growth in this challenging environment. They are ready to assist customers in the second round of the Paycheck Protection Program.”
“Our customers have proven to be resilient during troubling times and we will weather the storm together.”
COVID-19 Response
Banking operations remain unencumbered by state and local government COVID-19 restrictions. However, we have adapted 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 continue to be in place within our Louisiana and Mississippi markets. The restrictions primarily place limits on capacity and hours of operation of certain businesses.
During the second and third quarters of 2020, the Company funded approximately 3,072 loans totaling $262.2 million under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"). At December 31, 2020, the total recorded net investment in PPP loans was $221.2 million, of which approximately 2,495 loans with an aggregate outstanding balance of $70.5 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 relief options in March 2020. When we last reported the level of such deferrals in our third quarter Form 10-Q (as of September 30, 2020), $70.2 million, or 4% of total loans, were under deferral agreements. As of December 31, 2020, the level of deferrals decreased to $36.0 million, or 2% of total loans. 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, $469.2 million, or 98%, were current and performing as of December 31, 2020.
Fourth Quarter 2020 Highlights
•Net income totaled $11.6 million, up $2.8 million, or 32%, from the prior quarter primarily due to a $1.5 million increase in interest income on loans and the release of $1.3 million in the allowance for credit losses on unfunded lending commitments.
•Loan income from the recognition of deferred PPP lender fees totaled $2.2 million, up $1.1 million from the prior quarter. Loan accretion income from acquired loans totaled $1.7 million, up $847,000 compared to the prior quarter.
•A revision to the Company's estimate of credit loss on unfunded lending commitments led to a release of $1.3 million in reserves through noninterest expense and a $740,000 (net of tax) increase to retained earnings to adjust the impact of CECL adoption.
•Loans totaled $2.0 billion at December 31, 2020, up $24.7 million, or 5% annualized, from September 30, 2020. Excluding PPP loans, loan growth during the same comparative period was up $57.9 million, or 14% annualized.
•For the second consecutive quarter, the Company recorded no provision for loan losses. In light of our reserve builds during the first half of 2020, no additional provisions were made.
•The allowance for loan losses totaled $33.0 million, or 1.66% of total loans, at December 31, 2020. The allowance for credit losses ("ACL"), which includes the allowance for unfunded lending commitments, totaled $34.4 million, or 1.74% of total loans, at December 31, 2020. Excluding PPP loans, the ratio of allowance for loan losses to total loans and the ratio for allowance for credit losses was 1.87% and 1.96%, respectively, at such date.
•Nonperforming assets totaled $20.0 million, or 0.77% of total assets, down $4.9 million, or 20%, from September 30, 2020 primarily due to pay-downs on nonaccrual loans.
•Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.68% and 15.18% at December 31, 2020, compared to 9.44% and 15.29% at September 30, 2020.
•The net interest margin was 4.11% for the fourth quarter of 2020, up 29 basis points from the third quarter of 2020 primarily due to an increase in interest income on loans and further aided by a decrease in the cost of deposits.
•The average yield on total interest-bearing deposits was 0.50% for the fourth quarter of 2020, down 10 basis points from the third quarter of 2020.
Loans
Loans totaled $2.0 billion at December 31, 2020, up $24.7 million, or 1%, from September 30, 2020. The following table summarizes the changes in the Company’s loan portfolio from September 30, 2020 to December 31, 2020.
| December 31, | September 30, | Increase (Decrease) | ||||||
|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) | 2020 | 2020 | Amount | Percent | ||||
| Real estate loans: | ||||||||
| One- to four-family first mortgage | $ | 395,638 | $ | 409,282 | $ | (13,644) | (3) | % |
| Home equity loans and lines | 67,700 | 67,766 | (66) | — | ||||
| Commercial real estate | 750,623 | 707,638 | 42,985 | 6 | ||||
| Construction and land | 221,823 | 201,575 | 20,248 | 10 | ||||
| Multi-family residential | 87,332 | 86,619 | 713 | 1 | ||||
| Total real estate loans | 1,523,116 | 1,472,880 | 50,236 | 3 | ||||
| Other loans: | ||||||||
| Commercial and industrial | 417,926 | 443,480 | (25,554) | (6) | ||||
| Consumer | 38,912 | 38,937 | (25) | — | ||||
| Total other loans | 456,838 | 482,417 | (25,579) | (5) | ||||
| Total loans | $ | 1,979,954 | $ | 1,955,297 | $ | 24,657 | 1 | % |
During the fourth quarter of 2020, substantial commercial real estate and construction and land loan growth was partially offset by pay-downs of commercial and industrial loans and residential mortgages. The change in commercial and industrial loans included a decrease in PPP loans of $33.3 million, or 13%, from September 30, 2020. Residential mortgages declined primarily due to refinances as borrowers sought to acquire lower interest rates.
Commercial real estate ("CRE") loan growth was fairly evenly distributed across our major Louisiana markets and was primarily attributable to non-owner-occupied loans to borrowers outside of industry sectors that have been subject to increased monitoring during the COVID-19 pandemic. At December 31, 2020, CRE loans within our Acadiana and New Orleans markets accounted for approximately 65% of our total commercial real estate portfolio.
Construction and land ("C&D") loan growth was spread across our New Orleans, Acadiana and Baton Rouge markets and was primarily driven by non-residential construction projects. At December 31, 2020, C&D loans within our Acadiana, New Orleans, and Northshore markets accounted for approximately 70% of our total construction and land portfolio.
Credit Quality and Allowance for Credit Losses
Nonperforming assets (“NPAs”), totaled $20.0 million, or 0.77% of total assets at December 31, 2020, down $4.9 million, or 20%, from $24.8 million, or 0.96% of total assets, at September 30, 2020.
The Company recorded net loan charge-offs of $39,000 during the fourth quarter of 2020, compared to net loan charge-offs of $821,000 for the third quarter of 2020.
At December 31, 2020, loans under interest and/or principal payment deferral agreements due to the COVID-19 crisis totaled $36.0 million, or 2% of total loans, down from $70.2 million, or 4% of total loans, as of September 30, 2020. Of the loans that have exited deferral agreements, $469.2 million, or 98%, were current and performing as of December 31, 2020.
The Company recorded no provision for loan losses for the fourth quarter of 2020. Upon review of our allowance for loan losses in light of, among other factors, our reserve builds during the first half of 2020, we determined that no additional provision was required during the quarter in order to reflect the expected losses for the full lives of the loans in our portfolio. The provision for loan losses for the year ended December 31, 2020 totaled $12.7 million, up $9.7 million from the prior year. 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.
In addition to the allowance for loan losses, our allowance for credit losses includes an allowance for unfunded lending commitments. The allowance for unfunded lending commitments amounted to $1.4 million at December 31, 2020 compared to $3.6 million at September 30, 2020. During the fourth quarter of 2020, we revised our estimate of losses on unfunded lending commitments which resulted in an aggregate release of $2.2 million of this allowance. Of the $2.2 million release of the allowance for unfunded lending commitments, $1.3 million was recognized as a reduction of non-interest expense and $940,000 ($740,000 net of taxes) was recognized as an increase to retained earnings.
The following table provides a summary of the loan portfolio and related reserves at December 31, 2020. 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.
| (dollars in thousands) | Total Loans | PPP Loans | Total ACL | ACL to <br>Total Loans | ACL to <br>Total Non-PPP Loans | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2020 | ||||||||||
| Retail CRE | $ | 190,085 | $ | — | $ | 6,641 | 3.49 | % | 3.49 | % |
| Hotels and short-term rentals | 103,875 | 3,587 | 5,754 | 5.54 | 5.74 | |||||
| Restaurants and bars | 92,789 | 30,990 | 3,106 | 3.35 | 5.03 | |||||
| Energy | 31,304 | — | 1,638 | 5.23 | 5.23 | |||||
| Credit cards | 4,012 | — | 403 | 10.04 | 10.04 | |||||
| Other loans | 1,557,889 | 186,643 | 15,421 | 0.99 | 1.12 | |||||
| Total | $ | 1,979,954 | $ | 221,220 | $ | 32,963 | 1.66 | % | 1.87 | % |
| Unfunded lending commitments(1) | — | — | 1,425 | — | — | |||||
| Total | $ | 1,979,954 | $ | 221,220 | $ | 34,388 | 1.74 | % | 1.96 | % |
(1)At December 31, 2020, the allowance of $1.4 million related to unfunded lending commitments of $336.9 million. The ACL on unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.
Investment Securities
The following table summarizes the composition of the Company’s investment securities portfolio at December 31, 2020.
| (dollars in thousands) | Recorded Investment | |
|---|---|---|
| Available for sale | ||
| U.S. agency mortgage-backed | $ | 142,812 |
| Collateralized mortgage obligations | 75,620 | |
| Municipal bonds | 28,011 | |
| U.S. government agency | 6,255 | |
| Corporate bonds | 2,054 | |
| Total available for sale | 254,752 | |
| Held to Maturity | ||
| Municipal Bonds | 2,934 | |
| Total investment securities | $ | 257,686 |
Securities available for sale ("AFS") made up 99% of total investment securities and net unrealized gains on AFS securities totaled $6.5 million at December 31, 2020.
Deposits
Total deposits were $2.2 billion at December 31, 2020, up $6.3 million, or less than 1%, from September 30, 2020. The following table summarizes the changes in the Company’s deposits from September 30, 2020 to December 31, 2020.
| December 31, | September 30, | Increase/(Decrease) | ||||||
|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) | 2020 | 2020 | Amount | Percent | ||||
| Demand deposits | $ | 615,700 | $ | 629,345 | $ | (13,645) | (2) | % |
| Savings | 250,165 | 242,849 | 7,316 | 3 | ||||
| Money market | 333,078 | 336,310 | (3,232) | (1) | ||||
| NOW | 646,085 | 620,081 | 26,004 | 4 | ||||
| Certificates of deposit | 368,793 | 378,909 | (10,116) | (3) | ||||
| Total deposits | $ | 2,213,821 | $ | 2,207,494 | $ | 6,327 | — | % |
Net Interest Income
The net interest margin ("NIM") increased 29 basis points from 3.82% for the third quarter of 2020 to 4.11% for the fourth quarter of 2020 primarily due to an increase in loan income and further aided by a decrease in the cost of deposits.
The average loan yield was 5.20% for the fourth quarter of 2020, up 26 basis points from the third quarter of 2020. Loan income from the recognition of deferred PPP lender fees totaled $2.2 million during the fourth quarter of 2020, up $1.1 million, or 103%, compared to the third quarter of 2020. As a result, PPP loans positively impacted the average loan yield by 11 basis points and the NIM by 5 basis points during the fourth quarter of 2020. During the third quarter of 2020, PPP loans negatively impacted the average loan yield by 34 basis points and the NIM by 14 basis points. The receipt of forgiveness payments on PPP loans during the fourth quarter accelerated the recognition of deferred fees. Management anticipates this trend to continue into the first quarter of 2021 as the forgiveness process for PPP loans under $150,000 is expected to be expedited. At December 31, 2020, the total recorded net investment in PPP loans was $221.2 million, of which $70.5 million, or 32%, were for amounts of $150,000 or less. Unrecognized PPP lender fees totaled $5.4 million at December 31, 2020.
Loan accretion income from acquired loans totaled $1.7 million for the fourth quarter of 2020, up $847,000, or 100%, compared to the third quarter of 2020. During the fourth quarter, the Company received pay-downs on an acquired CRE and residential mortgage loans, which accelerated the accretion of discount into interest income on loans.
The average yield on total interest-bearing deposits was 0.50% for the fourth quarter of 2020, down 10 basis points from the third quarter of 2020.
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%.
| For the Three Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2020 | September 30, 2020 | |||||||||||
| (dollars in thousands) | Average Balance | Interest | Average Yield/ Rate | Average Balance | Interest | Average Yield/ Rate | ||||||
| Interest-earning assets: | ||||||||||||
| Loans receivable | $ | 1,984,969 | $ | 26,267 | 5.20 | % | $ | 1,971,174 | $ | 24,769 | 4.94 | % |
| Investment securities (TE) | 246,547 | 1,002 | 1.66 | 252,314 | 967 | 1.56 | ||||||
| Other interest-earning assets | 182,833 | 99 | 0.22 | 170,957 | 106 | 0.25 | ||||||
| Total interest-earning assets | $ | 2,414,349 | $ | 27,368 | 4.46 | % | $ | 2,394,445 | $ | 25,842 | 4.25 | % |
| Interest-bearing liabilities: | ||||||||||||
| Deposits: | ||||||||||||
| Savings, checking, and money market | $ | 1,217,430 | $ | 970 | 0.32 | % | $ | 1,195,455 | $ | 1,136 | 0.38 | % |
| Certificates of deposit | 375,597 | 1,017 | 1.08 | 381,949 | 1,232 | 1.28 | ||||||
| Total interest-bearing deposits | 1,593,027 | 1,987 | 0.50 | 1,577,404 | 2,368 | 0.60 | ||||||
| Other borrowings | 5,539 | 53 | 3.81 | 5,539 | 53 | 3.81 | ||||||
| FHLB advances | 29,742 | 129 | 1.74 | 34,612 | 149 | 1.73 | ||||||
| Total interest-bearing liabilities | $ | 1,628,308 | $ | 2,169 | 0.53 | % | $ | 1,617,555 | $ | 2,570 | 0.63 | % |
| Net interest spread (TE) | 3.93 | % | 3.62 | % | ||||||||
| Net interest margin (TE) | 4.11 | % | 3.82 | % |
Noninterest Income
Noninterest income for the fourth quarter of 2020 was $4.1 million, up $256,000, or 7%, from the third quarter of 2020 due primarily to gains on the sale of loans (up $178,000) and other income (up $97,000). Other income increased primarily due to fees earned on a risk participation agreement entered into during the fourth quarter of 2020.
Noninterest Expense
Noninterest expense for the fourth quarter of 2020 totaled $14.7 million, down $1.4 million, or 9%, compared to the third quarter of 2020.
The Company released $2.2 million of the allowance for credit losses on unfunded lending commitments during the fourth quarter of 2020, reflecting, among other factors, refinement of our estimate of future funding rates on unfunded lending commitments. The release of a portion of the allowance for unfunded loan commitments reduced noninterest expense by $1.3 million during the fourth quarter of 2020, with the remaining $940,000 of the release ($740,000 net of taxes) being recorded as an increase in retained earnings.
Compensation and benefits expense was down $323,000 from the third quarter of 2020 primarily due to the absence of bonuses, which were paid during the third quarter.
Regulatory fees were down $153,000 from the third quarter of 2020 due to a decrease in the FDIC assessment for the fourth quarter. The Company's improved financial condition led to a more favorable assessment rate.
Other expenses were up $198,000 from the third quarter of 2020 primarily due to certain loan servicing fees and expenses.
Capital and Liquidity
The Company's tangible common equity ratio was 10.23% and 9.93% at December 31, 2020 and September 30, 2020, respectively. At December 31, 2020, the Bank's preliminary Tier 1 leverage capital ratio was 9.68%, up 24 basis points from September 30, 2020, and preliminary total risk-based capital ratio was 15.18%, down 11 basis points from September 30, 2020. Loans covered under the PPP are included in the Bank's Tier 1 leverage capital ratio.
The following table summarizes the Company's primary and secondary sources of liquidity.
| December 31, | ||
|---|---|---|
| (dollars in thousands) | 2020 | |
| Cash and cash equivalents | $ | 187,952 |
| Unpledged investment securities, amortized cost | 125,342 | |
| FHLB advance availability | 787,232 | |
| Unsecured lines of credit | 55,000 | |
| Federal Reserve discount window availability | 500 | |
| Total primary and secondary liquidity | $ | 1,156,026 |
Dividend and Share Repurchases
The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.22 per share payable on February 19, 2021, to shareholders of record as of February 8, 2021.
The Company repurchased 91,612 shares of its common stock during the fourth quarter of 2020 at an average price per share of $26.23 under the Company's 2020 Repurchase Plan. An additional 300,080 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 $36.82 and $29.60, respectively, at December 31, 2020.
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.
| For the Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands, except per share data) | December 31, 2020 | September 30, 2020 | December 31, 2019 | ||||||
| Reported net income | $ | 11,585 | $ | 8,782 | $ | 6,606 | |||
| Add: Core deposit intangible amortization, net tax | 258 | 267 | 302 | ||||||
| Non-GAAP tangible income | $ | 11,843 | $ | 9,049 | $ | 6,908 | |||
| Total assets | $ | 2,591,850 | $ | 2,579,200 | $ | 2,200,465 | |||
| Less: Intangible assets | 63,112 | 63,439 | 64,472 | ||||||
| Non-GAAP tangible assets | $ | 2,528,738 | $ | 2,515,761 | $ | 2,135,993 | |||
| Total shareholders’ equity | $ | 321,842 | $ | 313,324 | $ | 316,329 | |||
| Less: Intangible assets | 63,112 | 63,439 | 64,472 | ||||||
| Non-GAAP tangible shareholders’ equity | $ | 258,730 | $ | 249,885 | $ | 251,857 | |||
| Total loans | $ | 1,979,954 | $ | 1,955,297 | $ | 1,714,361 | |||
| Less: PPP loans | 221,220 | 254,487 | — | ||||||
| Total loans excluding PPP loans | $ | 1,758,734 | $ | 1,700,810 | $ | 1,714,361 | |||
| Allowance for loan losses to total loans | 1.66 | % | 1.69 | % | 1.04 | % | |||
| Less: PPP loans | 0.21 | 0.25 | — | ||||||
| Non-GAAP allowance for loan losses to total loans | 1.87 | % | 1.94 | % | 1.04 | % | |||
| Return on average equity | 14.55 | % | 11.17 | % | 8.31 | % | |||
| Add: Average intangible assets | 4.04 | 3.27 | 2.62 | ||||||
| Non-GAAP return on average tangible common equity | 18.59 | % | 14.44 | % | 10.93 | % | |||
| Common equity ratio | 12.42 | % | 12.15 | % | 14.38 | % | |||
| Less: Intangible assets | 2.19 | 2.22 | 2.59 | ||||||
| Non-GAAP tangible common equity ratio | 10.23 | % | 9.93 | % | 11.79 | % | |||
| Book value per share | $ | 36.82 | $ | 35.48 | $ | 34.19 | |||
| Less: Intangible assets | 7.22 | 7.18 | 6.97 | ||||||
| Non-GAAP tangible book value per share | $ | 29.60 | $ | 28.30 | $ | 27.22 |
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, 2019, as supplemented by its Current Report on Form 8-K dated April 28, 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.
| HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONDENSED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (dollars in thousands) | December 31, 2020 | September 30, 2020 | % Change | December 31, 2019 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 187,952 | $ | 185,836 | 1 | % | $ | 39,847 | ||||||||||||
| Interest-bearing deposits in banks | 349 | 349 | — | 449 | ||||||||||||||||
| Investment securities available for sale, at fair value | 254,752 | 251,578 | 1 | 257,321 | ||||||||||||||||
| Investment securities held to maturity | 2,934 | 2,942 | — | 7,149 | ||||||||||||||||
| Mortgage loans held for sale | 9,559 | 21,045 | (55) | 6,990 | ||||||||||||||||
| Loans, net of unearned income | 1,979,954 | 1,955,297 | 1 | 1,714,361 | ||||||||||||||||
| Allowance for loan losses | (32,963) | (33,002) | — | (17,868) | ||||||||||||||||
| Total loans, net of allowance for loan losses | 1,946,991 | 1,922,295 | 1 | 1,696,493 | ||||||||||||||||
| Office properties and equipment, net | 45,497 | 45,696 | — | 46,425 | ||||||||||||||||
| Cash surrender value of bank-owned life insurance | 40,334 | 40,184 | — | 39,466 | ||||||||||||||||
| Goodwill and core deposit intangibles | 63,112 | 63,439 | (1) | 64,472 | ||||||||||||||||
| Accrued interest receivable and other assets | 40,370 | 45,836 | (12) | 41,853 | ||||||||||||||||
| Total Assets | $ | 2,591,850 | $ | 2,579,200 | — | $ | 2,200,465 | |||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits | $ | 2,213,821 | $ | 2,207,494 | — | % | $ | 1,820,975 | ||||||||||||
| Other Borrowings | 5,539 | 5,539 | — | 5,539 | ||||||||||||||||
| Federal Home Loan Bank advances | 28,824 | 31,445 | (8) | 40,620 | ||||||||||||||||
| Accrued interest payable and other liabilities | 21,824 | 21,398 | 2 | 17,002 | ||||||||||||||||
| Total Liabilities | 2,270,008 | 2,265,876 | — | 1,884,136 | ||||||||||||||||
| Shareholders' Equity | ||||||||||||||||||||
| Common stock | 87 | 88 | (1) | % | 93 | |||||||||||||||
| Additional paid-in capital | 164,988 | 165,522 | — | 168,545 | ||||||||||||||||
| Common stock acquired by benefit plans | (2,789) | (2,880) | 3 | (3,159) | ||||||||||||||||
| Retained earnings | 154,282 | 145,373 | 6 | 150,158 | ||||||||||||||||
| Accumulated other comprehensive income | 5,274 | 5,221 | 1 | 692 | ||||||||||||||||
| Total Shareholders' Equity | 321,842 | 313,324 | 3 | 316,329 | ||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,591,850 | $ | 2,579,200 | — | $ | 2,200,465 | |||||||||||||
| HOMEBANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||
| CONDENSED STATEMENTS OF INCOME | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| (dollars in thousands, except per share data) | December 31, 2020 | September 30, 2020 | % Change | December 31, 2019 | % Change | |||||||||||||||
| Interest Income | ||||||||||||||||||||
| Loans, including fees | $ | 26,267 | $ | 24,769 | 6 | % | $ | 23,842 | 10 | % | ||||||||||
| Investment securities | 1,002 | 967 | 4 | 1,341 | (25) | |||||||||||||||
| Other investments and deposits | 99 | 106 | (7) | 261 | (62) | |||||||||||||||
| Total interest income | 27,368 | 25,842 | 6 | 25,444 | 8 | |||||||||||||||
| Interest Expense | ||||||||||||||||||||
| Deposits | 1,987 | 2,368 | (16) | % | 3,934 | (49) | % | |||||||||||||
| Other borrowings | 53 | 53 | — | 54 | (2) | |||||||||||||||
| Federal Home Loan Bank advances | 129 | 149 | (13) | 198 | (35) | |||||||||||||||
| Total interest expense | 2,169 | 2,570 | (16) | 4,186 | (48) | |||||||||||||||
| Net interest income | 25,199 | 23,272 | 8 | 21,258 | 19 | |||||||||||||||
| Provision for loan losses | — | — | — | 713 | (100) | |||||||||||||||
| Net interest income after provision for loan losses | 25,199 | 23,272 | 8 | 20,545 | 23 | |||||||||||||||
| Noninterest Income | ||||||||||||||||||||
| Service fees and charges | 1,117 | 1,123 | (1) | % | 1,544 | (28) | % | |||||||||||||
| Bank card fees | 1,273 | 1,331 | (4) | 1,102 | 16 | |||||||||||||||
| Gain on sale of loans, net | 1,082 | 904 | 20 | 316 | 242 | |||||||||||||||
| Income from bank-owned life insurance | 276 | 231 | 19 | 238 | 16 | |||||||||||||||
| Loss on sale of assets, net | — | — | — | 1 | (100) | |||||||||||||||
| Other income | 302 | 205 | 47 | 298 | 1 | |||||||||||||||
| Total noninterest income | 4,050 | 3,794 | 7 | 3,499 | 16 | |||||||||||||||
| Noninterest Expense | ||||||||||||||||||||
| Compensation and benefits | 9,417 | 9,740 | (3) | % | 9,438 | — | % | |||||||||||||
| Occupancy | 1,719 | 1,686 | 2 | 1,713 | — | |||||||||||||||
| Marketing and advertising | 386 | 288 | 34 | 579 | (33) | |||||||||||||||
| Data processing and communication | 1,913 | 1,851 | 3 | 1,829 | 5 | |||||||||||||||
| Professional fees | 187 | 197 | (5) | 172 | 9 | |||||||||||||||
| Forms, printing and supplies | 154 | 140 | 10 | 169 | (9) | |||||||||||||||
| Franchise and shares tax | 331 | 378 | (12) | 248 | 33 | |||||||||||||||
| Regulatory fees | 373 | 526 | (29) | 113 | 230 | |||||||||||||||
| Foreclosed assets, net | 181 | 162 | 12 | 228 | (21) | |||||||||||||||
| Amortization of acquisition intangible | 327 | 338 | (3) | 382 | (14) | |||||||||||||||
| Provision for credit losses on unfunded lending commitments | (1,272) | — | — | |||||||||||||||||
| Other expenses | 1,008 | 810 | 24 | 881 | 14 | |||||||||||||||
| Total noninterest expense | 14,724 | 16,116 | (9) | 15,752 | (7) | |||||||||||||||
| Income before income tax expense | 14,525 | 10,950 | 33 | 8,292 | 75 | |||||||||||||||
| Income tax expense | 2,940 | 2,168 | 36 | 1,686 | 74 | |||||||||||||||
| Net income | $ | 11,585 | $ | 8,782 | 32 | $ | 6,606 | 75 | ||||||||||||
| Earnings per share - basic | $ | 1.37 | $ | 1.01 | 36 | % | $ | 0.74 | 85 | % | ||||||||||
| Earnings per share - diluted | $ | 1.36 | $ | 1.01 | 35 | $ | 0.73 | 86 | ||||||||||||
| Cash dividends declared per common share | $ | 0.22 | $ | 0.22 | — | % | $ | 0.22 | — | % | ||||||||||
| HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| SUMMARY FINANCIAL INFORMATION | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| (dollars in thousands, except per share data) | December 31, 2020 | September 30, 2020 | % Change | December 31, 2019 | % Change | |||||||||||||||
| EARNINGS DATA | ||||||||||||||||||||
| Total interest income | $ | 27,368 | $ | 25,842 | 6 | % | $ | 25,444 | 8 | % | ||||||||||
| Total interest expense | 2,169 | 2,570 | (16) | 4,186 | (48) | |||||||||||||||
| Net interest income | 25,199 | 23,272 | 8 | 21,258 | 19 | |||||||||||||||
| Provision for loan losses | — | — | — | 713 | (100) | |||||||||||||||
| Total noninterest income | 4,050 | 3,794 | 7 | 3,499 | 16 | |||||||||||||||
| Total noninterest expense | 14,724 | 16,116 | (9) | 15,752 | (7) | |||||||||||||||
| Income tax expense | 2,940 | 2,168 | 36 | 1,686 | 74 | |||||||||||||||
| Net income | $ | 11,585 | $ | 8,782 | 32 | $ | 6,606 | 75 | ||||||||||||
| AVERAGE BALANCE SHEET DATA | ||||||||||||||||||||
| Total assets | $ | 2,599,835 | $ | 2,582,239 | 1 | % | $ | 2,219,049 | 17 | % | ||||||||||
| Total interest-earning assets | 2,414,349 | 2,394,445 | 1 | 2,021,316 | 19 | |||||||||||||||
| Total loans | 1,984,969 | 1,971,174 | 1 | 1,712,035 | 16 | |||||||||||||||
| Total interest-bearing deposits | 1,593,027 | 1,577,404 | 1 | 1,384,250 | 15 | |||||||||||||||
| Total interest-bearing liabilities | 1,628,308 | 1,617,555 | 1 | 1,433,359 | 14 | |||||||||||||||
| Total deposits | 2,226,526 | 2,208,825 | 1 | 1,835,026 | 21 | |||||||||||||||
| Total shareholders' equity | 316,679 | 312,841 | 1 | 315,487 | — | |||||||||||||||
| SELECTED RATIOS (1) | ||||||||||||||||||||
| Return on average assets | 1.77 | % | 1.35 | % | 31 | % | 1.18 | % | 50 | % | ||||||||||
| Return on average equity | 14.55 | 11.17 | 30 | 8.31 | 75 | |||||||||||||||
| Common equity ratio | 12.42 | 12.15 | 2 | 14.38 | (14) | |||||||||||||||
| Efficiency ratio (2) | 50.34 | 59.54 | (15) | 63.63 | (21) | |||||||||||||||
| Average equity to average assets | 12.18 | 12.12 | — | 14.22 | (14) | |||||||||||||||
| Tier 1 leverage capital ratio (3) | 9.68 | 9.44 | 3 | 11.17 | (13) | |||||||||||||||
| Total risk-based capital ratio (3) | 15.18 | 15.29 | (1) | 15.28 | (1) | |||||||||||||||
| Net interest margin (4) | 4.11 | 3.82 | 8 | 4.14 | (1) | |||||||||||||||
| SELECTED NON-GAAP RATIOS (1) | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| Tangible common equity ratio (5) | 10.23 | % | 9.93 | % | 3 | % | 11.79 | % | (13) | % | ||||||||||
| Return on average tangible common equity (6) | 18.59 | 14.44 | 29 | 10.93 | 70 | |||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||
| Earnings per share - basic | $ | 1.37 | $ | 1.01 | 36 | % | $ | 0.74 | 85 | % | ||||||||||
| Earnings per share - diluted | 1.36 | 1.01 | 35 | 0.73 | 86 | |||||||||||||||
| Book value at period end | 36.82 | 35.48 | 4 | 34.19 | 8 | |||||||||||||||
| Tangible book value at period end | 29.60 | 28.30 | 5 | 27.22 | 9 | |||||||||||||||
| Shares outstanding at period end | 8,740,104 | 8,831,406 | (1) | 9,252,418 | (6) | |||||||||||||||
| Weighted average shares outstanding | ||||||||||||||||||||
| Basic | 8,484,785 | 8,627,318 | (2) | % | 8,953,203 | (5) | % | |||||||||||||
| Diluted | 8,508,740 | 8,651,066 | (2) | 9,018,142 | (6) | |||||||||||||||
| (1)With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods.<br><br>(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.<br><br>(3)Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change.<br><br>(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%.<br><br>(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.<br><br>(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. | ||||||||||||||||||||
| HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| SUMMARY CREDIT QUALITY INFORMATION | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| September 30, 2020 | December 31, 2019 | |||||||||||||||||||
| (dollars in thousands) | Originated | Total | Acquired | Originated | Total | Acquired | Originated | Total | ||||||||||||
| CREDIT QUALITY (1)(2) | ||||||||||||||||||||
| Nonaccrual loans (3) | 8,748 | $ | 9,929 | $ | 18,677 | $ | 10,639 | $ | 12,204 | $ | 22,843 | $ | 9,758 | $ | 14,628 | $ | 24,386 | |||
| Accruing loans past due 90 days and over | 2 | 2 | — | 10 | 10 | — | — | — | ||||||||||||
| Total nonperforming loans | 9,931 | 18,679 | 10,639 | 12,214 | 22,853 | 9,758 | 14,628 | 24,386 | ||||||||||||
| Foreclosed assets and ORE | 422 | 1,302 | 1,029 | 956 | 1,985 | 2,363 | 1,793 | 4,156 | ||||||||||||
| Total nonperforming assets | 10,353 | 19,981 | 11,668 | 13,170 | 24,838 | 12,121 | 16,421 | 28,542 | ||||||||||||
| Performing troubled debt restructurings | 1,512 | 2,085 | 480 | 910 | 1,390 | 475 | 1,903 | 2,378 | ||||||||||||
| Total nonperforming assets and troubled debt restructurings | 10,201 | $ | 11,865 | $ | 22,066 | $ | 12,148 | $ | 14,080 | $ | 26,228 | $ | 12,596 | $ | 18,324 | $ | 30,920 | |||
| Nonperforming assets to total assets | 0.77 | % | 0.96 | % | 1.30 | % | ||||||||||||||
| Nonperforming loans to total assets | 0.72 | 0.89 | 1.11 | |||||||||||||||||
| Nonperforming loans to total loans | 0.94 | 1.17 | 1.42 | |||||||||||||||||
| Allowance for loan losses to nonperforming assets | 164.97 | 132.87 | 62.60 | |||||||||||||||||
| Allowance for loan losses to nonperforming loans | 176.47 | 144.41 | 73.27 | |||||||||||||||||
| Allowance for loan losses to total loans | 1.66 | 1.69 | 1.04 | |||||||||||||||||
| Allowance for credit losses to total loans(4) | 1.74 | 1.87 | 1.04 | |||||||||||||||||
| Year-to-date loan charge-offs | $ | 2,601 | $ | 2,522 | $ | 1,577 | ||||||||||||||
| Year-to-date loan recoveries | 335 | 295 | 83 | |||||||||||||||||
| Year-to-date net loan charge-offs | $ | 2,266 | $ | 2,227 | $ | 1,494 | ||||||||||||||
| Annualized YTD net loan charge-offs to average loans | 0.12 | % | 0.16 | % | 0.09 | % | ||||||||||||||
| (1)Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. Due to the adoption of CECL, PCD loans of 390,000 and 2.1 million are included in nonperforming loans at December 31, 2020 and September 30, 2020, respectively. Prior to January 1, 2020, these loans were classified as PCI and excluded from nonperforming loans because they continued to earn interest income from the accretable yield at the pool level. With the adoption of CECL, the pools were discontinued and performance is based on contractual terms for individual loans. (2)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 other 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.(3)Nonaccrual loans include originated restructured loans placed on nonaccrual totaling 6.5 million, 7.2 million and 7.6 million at December 31, 2020, September 30, 2020 and December 31, 2019, respectively. Acquired restructured loans placed on nonaccrual totaled 3.5 million, 1.2 million and 2.2 million at December 31, 2020, September 30, 2020 and December 31, 2019, respectively.(4)The allowance for credit losses includes 1.4 million and 3.6 million for unfunded lending commitments at December 31, 2020 and September 30, 2020, respectively. The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition. |
All values are in US Dollars.