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) | October 18, 2022 | | --- | --- || 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 October 18, 2022, the Registrant announced its results of operations for the quarter ended September 30, 2022. 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 October 18, 2022, the Registrant announced that its Board of Directors increased its quarterly cash dividend on shares of its common stock to $0.24 per share. The cash dividend will be paid on November 10, 2022 to shareholders of record at the close of business on October 31, 2022.
| 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, datedOctober 18,2022 |
| 104 | The cover page of Home Bancorp Inc.'s Form 8-K is formatted in Inline XBRL. |
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: October 18, 2022 | By: | /s/ John W. Bordelon |
| John W. Bordelon | ||
| Chairman of the Board, President and Chief Executive Officer |
Document
For further information contact:
John W. Bordelon, Chairman of the Board, President and CEO
(337) 237-1960
| Release Date: | October 18, 2022 |
|---|---|
| For Immediate Release |
HOME BANCORP, INC. ANNOUNCES 2022 THIRD QUARTER RESULTS AND
INCREASES QUARTERLY DIVIDEND BY 4%
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 third quarter of 2022. For the quarter, the Company reported net income of $10.4 million, or $1.28 per diluted common share (“diluted EPS”), up $2.0 million from $8.5 million, or $1.03 diluted EPS, for the second quarter of 2022. The third and second quarters of 2022 include merger expenses, net of taxes totaling $41,000 and $1.3 million, respectively, related to the acquisition of Friendswood Capital Corporation ("Friendswood"), the former holding company of Texan Bank, N.A. ("Texan Bank") of Houston, Texas, which was consummated on March 26, 2022. Income pre-tax, pre-provision and pre-PPP income totaled $14.7 million, up $4.0 million, or 37%, from the prior quarter.
“We are excited to report strong earnings and loan growth throughout our footprint for the second consecutive quarter," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "While maintaining a strong credit discipline, the Company’s total loans increased on a reported basis 4% from the previous quarter. Excluding PPP loans, total loans increased $83.6 million, or 15% on an annualized basis of which approximately 27% was attributable to the Houston market. We are seeing continuous success attracting new customers throughout our footprint.”
Third Quarter 2022 Highlights
•Loans totaled $2.3 billion at September 30, 2022, up $78.6 million, or 4%, from June 30, 2022. Excluding PPP loans, total organic loans were up $83.6 million, or 15% annualized, from June 30, 2022. PPP loans totaled $7.1 million at September 30, 2022, down $5.0 million, or 41%, from June 30, 2022.
•Net interest income totaled $32.0 million, up $2.7 million, or 9% from the prior quarter. Excluding PPP income, net interest income totaled $31.8 million, up $3.0 million, or 10% from the prior quarter.
•The net interest margin ("NIM") increased 35 basis points from 3.76% for the second quarter of 2022 to 4.11%. Excluding PPP, NIM increased 38 basis points during the third quarter of 2022 to 4.11%.
•The Company recorded a $1.7 million provision to the allowance for loan losses primarily due to loan growth.
•The Company repurchased 77,021 shares of its common stock during the third quarter of 2022 at an average price per share of $37.06.
Loans
Loans totaled $2.3 billion at September 30, 2022, up $78.6 million, or 4%, from June 30, 2022. PPP loans, included in commercial and industrial loans, decreased $5.0 million, or 41%, from June 30, 2022. The following table summarizes the changes in the Company’s loan portfolio, net of unearned income, from June 30, 2022 to September 30, 2022.
| (dollars in thousands) | 9/30/2022 | 6/30/2022 | Increase (Decrease) | |||||
|---|---|---|---|---|---|---|---|---|
| Real estate loans: | ||||||||
| One- to four-family first mortgage | $ | 376,028 | $ | 369,410 | $ | 6,618 | 2 | % |
| Home equity loans and lines | 60,624 | 59,799 | 825 | 1 | ||||
| Commercial real estate | 1,086,656 | 1,053,696 | 32,960 | 3 | ||||
| Construction and land | 328,753 | 317,351 | 11,402 | 4 | ||||
| Multi-family residential | 97,212 | 101,136 | (3,924) | (4) | ||||
| Total real estate loans | 1,949,273 | 1,901,392 | 47,881 | 3 | ||||
| Other loans: | ||||||||
| Commercial and industrial | 320,900 | 290,157 | 30,743 | 11 | ||||
| Consumer | 33,106 | 33,106 | — | — | ||||
| Total other loans | 354,006 | 323,263 | 30,743 | 10 | ||||
| Total loans | $ | 2,303,279 | $ | 2,224,655 | $ | 78,624 | 4 | % |
The average loan yield was 5.17% for the third quarter of 2022, up 23 basis points from the second quarter of 2022. Commercial real estate, commercial and industrial and construction and land loans were the primary drivers for the loan growth during the third quarter of 2022. Commercial and industrial loan growth for the current quarter was primarily in our Acadiana, Baton Rouge and Mississippi markets. At September 30, 2022, the growth in commercial real estate and construction loans was primarily within our Houston and New Orleans markets.
Credit Quality and Allowance for Credit Losses
Nonperforming assets (“NPAs”) totaled $17.5 million, or 0.55% of total assets, at September 30, 2022, down $1.3 million, or 7%, from $18.8 million, or 0.56% of total assets, at June 30, 2022. During the third quarter of 2022, the Company recorded net loan charge-offs of $365,000, compared to net charge-offs of $439,000 during the second quarter of 2022.
The Company provisioned $1.7 million to the allowance for loan losses in the third quarter of 2022. At September 30, 2022, the allowance for loan losses totaled $27.4 million, or 1.19% of total loans, compared to $26.0 million, or 1.17% of total loans, at June 30, 2022. Excluding PPP loans, the ratios of the allowance for loan losses to total loans were 1.19% and 1.18% at September 30, 2022 and June 30, 2022, 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.
Deposits
Total deposits were $2.7 billion at September 30, 2022, down $182.0 million, or 6%, from June 30, 2022. Non-maturity deposits decreased $145.4 million during the third quarter of 2022 to $2.4 billion. The decrease was primarily due to $40.6 million decline in public funds and $53.1 million decline in surge deposits related to three current customers. The following table summarizes the changes in the Company’s deposits from June 30, 2022 to September 30, 2022.
| (dollars in thousands) | 9/30/2022 | 6/30/2022 | Increase (Decrease) | |||||
|---|---|---|---|---|---|---|---|---|
| Demand deposits | $ | 921,089 | $ | 938,531 | $ | (17,442) | (2) | % |
| Savings | 325,594 | 316,974 | 8,620 | 3 | ||||
| Money market | 452,474 | 483,951 | (31,477) | (7) | ||||
| NOW | 686,592 | 791,692 | (105,100) | (13) | ||||
| Certificates of deposit | 352,675 | 389,228 | (36,553) | (9) | ||||
| Total deposits | $ | 2,738,424 | $ | 2,920,376 | $ | (181,952) | (6) | % |
The average rate on interest-bearing deposits increased five basis points from 0.22% for the second quarter of 2022 to 0.27% for the third quarter of 2022. At September 30, 2022, certificates of deposit maturing within the next 12 months totaled $274.7 million.
Net Interest Income
The net interest margin ("NIM") increased 35 basis points from 3.76% for the second quarter of 2022 to 4.11% for the third quarter of 2022 primarily due to an increase in the average yield on interest-earning assets, which was partially offset with an increase in the average cost of interest-bearing liabilities. The increase in average cost of interest-bearing liabilities was primarily due to the issuance of subordinated debt on June 30, 2022. Loan income from the recognition of deferred PPP lender fees totaled $108,000 during the third quarter of 2022, down $262,000, or 71%, compared to the second quarter of 2022.
The average loan yield was 5.17% for the third quarter of 2022, up 23 basis points from the second quarter of 2022. Due to the declining balance of PPP loans, income from PPP loans did not significantly impact the average loan yield or the NIM during the third quarter of 2022. During the second quarter of 2022, PPP loans positively impacted the average loan yield by three basis points and the NIM by three basis points.
Average PPP loans were $9.4 million for the third quarter of 2022, down $6.0 million, or 39%, from the second quarter of 2022. Unrecognized PPP lender fees totaled $103,000 at September 30, 2022.
Average other interest-earning assets were $262.1 million for the third quarter of 2022, down $160.1 million, or 38%, from the second quarter of 2022 primarily due to a reallocation of certain other assets to partially fund the increases in loans and investment securities.
Loan accretion income from acquired loans totaled $846,000 for the third quarter of 2022, down $33,000, or 4% from the second quarter of 2022.
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 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 9/30/2022 | 6/30/2022 | |||||||||||
| (dollars in thousands) | Average Balance | Interest | Average Yield/ Rate | Average Balance | Interest | Average Yield/ Rate | ||||||
| Interest-earning assets: | ||||||||||||
| Loans receivable | $ | 2,265,846 | $ | 29,859 | 5.17 | % | $ | 2,190,721 | $ | 27,304 | 4.94 | % |
| Investment securities (TE) | 532,300 | 2,958 | 2.25 | 475,853 | 2,338 | 1.99 | ||||||
| Other interest-earning assets | 262,127 | 1,447 | 2.19 | 422,265 | 863 | 0.82 | ||||||
| Total interest-earning assets | $ | 3,060,273 | $ | 34,264 | 4.41 | % | $ | 3,088,839 | $ | 30,505 | 3.93 | % |
| Interest-bearing liabilities: | ||||||||||||
| Deposits: | ||||||||||||
| Savings, checking, and money market | $ | 1,522,350 | $ | 876 | 0.23 | % | $ | 1,584,118 | $ | 673 | 0.17 | % |
| Certificates of deposit | 371,925 | 394 | 0.42 | 406,367 | 430 | 0.42 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Total interest-bearing deposits | 1,894,275 | 1,270 | 0.27 | 1,990,485 | 1,103 | 0.22 | ||||||
| Other borrowings | 5,539 | 53 | 3.80 | 5,794 | 54 | 3.71 | ||||||
| Subordinated debt | $ | 53,943 | $ | 859 | 6.32 | % | 774 | — | — | |||
| FHLB advances | 24,977 | 105 | 1.68 | 25,426 | 107 | 1.69 | ||||||
| Total interest-bearing liabilities | $ | 1,978,734 | $ | 2,287 | 0.46 | % | $ | 2,022,479 | $ | 1,264 | 0.25 | % |
| Net interest spread (TE) | 3.95 | % | 3.68 | % | ||||||||
| Net interest margin (TE) | 4.11 | % | 3.76 | % |
Noninterest Income
Noninterest income for the third quarter of 2022 totaled $3.5 million, down $212,000, or 6%, from the second quarter of 2022. A decrease in net gain on sale of loans of $186,000, or 70% from the second quarter was the primary reason for the decline in noninterest income for the third quarter of 2022.
Noninterest Expense
Noninterest expense for the third quarter of 2022 totaled $20.7 million, down $1.0 million, or 5%, from the second quarter of 2022. The decrease was related primarily to a reduction in merger expenses related to the acquisition of Friendswood, which was partially offset by an increase in compensation and benefits expense, primarily reflecting the growth of the Bank. Noninterest expense for the third quarter of 2022 and the second quarter of 2022 include $60,000 and $1.6 million, respectively, of merger expenses related to the acquisition of Friendswood.
Capital
At September 30, 2022, shareholders’ equity totaled $316.7 million, down $12.5 million, or 4%, compared to $329.1 million at June 30, 2022. The decrease was primarily due to the Company’s accumulated other comprehensive loss on available for sale investment securities during the third quarter of 2022, which was partially offset by the Company's earnings. The market value of the Company's available for sale securities at September 30, 2022 declined $25.1 million, or 73% compared to $34.5 million at June 30, 2022. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.76% and 13.50%, respectively, at September 30, 2022, compared to 9.30% and 13.74%, respectively, at June 30, 2022.
Dividend and Share Repurchases
The Company announced that its Board of Directors increased its quarterly cash dividend on shares of its common stock to $0.24 per share payable on November 10, 2022, to shareholders of record as of October 31, 2022.
The Company repurchased 77,021 shares of its common stock during the third quarter of 2022 at an average price per share of $37.06. An additional 197,033 shares remain eligible for purchase under the 2021 Repurchase Plan. The book value per share and tangible book value per share of the Company’s common stock was $38.27 and $27.66, respectively, at September 30, 2022.
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, PPP loans and certain acquisition related metrics. 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) | 9/30/2022 | 6/30/2022 | 9/30/2021 | ||||||
| Reported net income | $ | 10,434 | $ | 8,461 | $ | 15,059 | |||
| Add: Core deposit intangible amortization, net tax | 358 | 359 | 230 | ||||||
| Non-GAAP tangible income | $ | 10,792 | $ | 8,820 | $ | 15,289 | |||
| Reported loan income | $ | 29,859 | $ | 27,304 | $ | 27,045 | |||
| Less: PPP loan income | 132 | 402 | 4,742 | ||||||
| Loan income excluding PPP loan income | $ | 29,727 | $ | 26,902 | $ | 22,303 | |||
| Loan yield | 5.17 | % | 4.94 | % | 5.60 | % | |||
| (Positive) negative impact of PPP loans | — | (0.03) | (0.60) | ||||||
| Loan yield excluding PPP loans | 5.17 | % | 4.91 | % | 5.00 | % | |||
| Net interest margin | 4.11 | % | 3.76 | % | 4.16 | % | |||
| (Positive) negative impact of PPP loans | — | (0.03) | (0.52) | ||||||
| Net interest margin excluding PPP loans | 4.11 | % | 3.73 | % | 3.64 | % | |||
| Total assets | $ | 3,167,666 | $ | 3,362,216 | $ | 2,763,466 | |||
| Less: Intangible assets | 87,839 | 88,309 | 62,229 | ||||||
| Non-GAAP tangible assets | $ | 3,079,827 | $ | 3,273,907 | $ | 2,701,237 | |||
| Total shareholders’ equity | $ | 316,656 | $ | 329,124 | $ | 344,149 | |||
| Less: Intangible assets | 87,839 | 88,309 | 62,229 | ||||||
| Non-GAAP tangible shareholders’ equity | $ | 228,817 | $ | 240,815 | $ | 281,920 | |||
| Total loans | $ | 2,303,279 | $ | 2,224,655 | $ | 1,875,176 | |||
| Less: PPP loans | 7,094 | 12,083 | 95,560 | ||||||
| Organic loan portfolio | $ | 2,296,185 | $ | 2,212,572 | $ | 1,779,616 | |||
| Reported net income | $ | 10,434 | $ | 8,461 | $ | 15,059 | |||
| Add: Provision (reversal) for loan losses | 1,696 | 591 | (2,385) | ||||||
| Add: Provision for credit losses on unfunded commitments | 146 | — | — | ||||||
| Add: Income tax expense | 2,598 | 2,110 | 3,412 | ||||||
| Pre-tax, pre-provision income | $ | 14,874 | $ | 11,162 | $ | 16,086 | |||
| Less: PPP income | 132 | 402 | 4,742 | ||||||
| Pre-tax, pre-provision, pre- PPP income | $ | 14,742 | $ | 10,760 | $ | 11,344 | |||
| Quarter Ended | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (dollars in thousands, except per share data) | 9/30/2022 | 6/30/2022 | 9/30/2021 | ||||||
| Allowance for loan losses to total loans | 1.19 | % | 1.17 | % | 1.29 | % | |||
| Less: PPP loans | — | 0.01 | 0.07 | ||||||
| Non-GAAP allowance for loan losses to total loans | 1.19 | % | 1.18 | % | 1.36 | % | |||
| Return on average equity | 12.35 | % | 10.20 | % | 17.46 | % | |||
| Add: Average intangible assets | 4.99 | 4.23 | 4.22 | ||||||
| Non-GAAP return on average tangible common equity | 17.34 | % | 14.43 | % | 21.68 | % | |||
| Common equity ratio | 10.00 | % | 9.79 | % | 12.45 | % | |||
| Less: Intangible assets | 2.57 | 2.43 | 2.01 | ||||||
| Non-GAAP tangible common equity ratio | 7.43 | % | 7.36 | % | 10.44 | % | |||
| Book value per share | $ | 38.27 | $ | 39.44 | $ | 40.38 | |||
| Less: Intangible assets | 10.61 | 10.58 | 7.30 | ||||||
| Non-GAAP tangible book value per share | $ | 27.66 | $ | 28.86 | $ | 33.08 |
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, 2021 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) | 9/30/2022 | 6/30/2022 | % Change | 9/30/2021 | |||||||||
| Assets | |||||||||||||
| Cash and cash equivalents | $ | 150,556 | $ | 444,151 | (66) | % | $ | 413,694 | |||||
| Interest-bearing deposits in banks | 349 | 349 | — | 349 | |||||||||
| Investment securities available for sale, at fair value | 492,758 | 480,007 | 3 | 304,125 | |||||||||
| Investment securities held to maturity | 1,080 | 2,086 | (48) | 2,110 | |||||||||
| Mortgage loans held for sale | 169 | 1,444 | (88) | 3,476 | |||||||||
| Loans, net of unearned income | 2,303,279 | 2,224,655 | 4 | 1,875,176 | |||||||||
| Allowance for loan losses | (27,351) | (26,020) | 5 | (24,149) | |||||||||
| Total loans, net of allowance for loan losses | 2,275,928 | 2,198,635 | 4 | 1,851,027 | |||||||||
| Office properties and equipment, net | 43,685 | 43,979 | (1) | 44,331 | |||||||||
| Cash surrender value of bank-owned life insurance | 46,019 | 40,788 | 13 | 40,142 | |||||||||
| Goodwill and core deposit intangibles | 87,839 | 88,309 | (1) | 62,229 | |||||||||
| Accrued interest receivable and other assets | 69,283 | 62,468 | 11 | 41,983 | |||||||||
| Total Assets | $ | 3,167,666 | $ | 3,362,216 | (6) | $ | 2,763,466 | ||||||
| Liabilities | |||||||||||||
| Deposits | $ | 2,738,424 | $ | 2,920,376 | (6) | % | $ | 2,365,717 | |||||
| Other Borrowings | 5,539 | 5,539 | — | 5,539 | |||||||||
| Subordinated debt, net of issuance cost | 53,958 | 53,926 | — | — | |||||||||
| Federal Home Loan Bank advances | 24,816 | 25,307 | (2) | 26,430 | |||||||||
| Accrued interest payable and other liabilities | 28,273 | 27,944 | 1 | 21,631 | |||||||||
| Total Liabilities | 2,851,010 | 3,033,092 | (6) | 2,419,317 | |||||||||
| Shareholders' Equity | |||||||||||||
| Common stock | 83 | 84 | (1) | % | 85 | ||||||||
| Additional paid-in capital | 164,024 | 164,177 | — | 164,316 | |||||||||
| Common stock acquired by benefit plans | (2,150) | (2,240) | 4 | (2,513) | |||||||||
| Retained earnings | 197,553 | 191,114 | 3 | 180,327 | |||||||||
| Accumulated other comprehensive (loss) income | (42,854) | (24,011) | (78) | 1,934 | |||||||||
| Total Shareholders' Equity | 316,656 | 329,124 | (4) | 344,149 | |||||||||
| Total Liabilities and Shareholders' Equity | $ | 3,167,666 | $ | 3,362,216 | (6) | $ | 2,763,466 | ||||||
| HOME BANCORP, INC. AND SUBSIDIARY | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| CONDENSED STATEMENTS OF INCOME | |||||||||||||
| (Unaudited) | |||||||||||||
| Quarter Ended | |||||||||||||
| (dollars in thousands, except per share data) | 9/30/2022 | 6/30/2022 | % Change | 9/30/2021 | % Change | ||||||||
| Interest Income | |||||||||||||
| Loans, including fees | $ | 29,859 | $ | 27,304 | 9 | % | $ | 27,045 | 10 | % | |||
| Investment securities | 2,958 | 2,338 | 27 | 1,189 | 149 | ||||||||
| Other investments and deposits | 1,447 | 863 | 68 | 189 | 666 | ||||||||
| Total interest income | 34,264 | 30,505 | 12 | 28,423 | 21 | ||||||||
| Interest Expense | |||||||||||||
| Deposits | 1,270 | 1,103 | 15 | % | 1,120 | 13 | % | ||||||
| Other borrowings | 53 | 54 | (2) | 53 | — | ||||||||
| Subordinated debt expense | 859 | — | — | — | — | ||||||||
| Federal Home Loan Bank advances | 105 | 107 | (2) | 116 | (9) | ||||||||
| Total interest expense | 2,287 | 1,264 | 81 | 1,289 | 77 | ||||||||
| Net interest income | 31,977 | 29,241 | 9 | 27,134 | 18 | ||||||||
| Provision (reversal) for loan losses | 1,696 | 591 | 187 | (2,385) | 171 | ||||||||
| Net interest income after provision (reversal) for loan losses | 30,281 | 28,650 | 6 | 29,519 | 3 | ||||||||
| Noninterest Income | |||||||||||||
| Service fees and charges | 1,300 | 1,257 | 3 | % | 1,260 | 3 | % | ||||||
| Bank card fees | 1,623 | 1,636 | (1) | 1,519 | 7 | ||||||||
| Gain on sale of loans, net | 78 | 264 | (70) | 415 | (81) | ||||||||
| Income from bank-owned life insurance | 231 | 213 | 8 | 1,938 | (88) | ||||||||
| Gain (loss) on sale of assets, net | 18 | (6) | 400 | (3) | 700 | ||||||||
| Other income | 224 | 322 | (30) | 254 | (12) | ||||||||
| Total noninterest income | 3,474 | 3,686 | (6) | 5,383 | (35) | ||||||||
| Noninterest Expense | |||||||||||||
| Compensation and benefits | 12,128 | 12,583 | (4) | % | 9,809 | 24 | % | ||||||
| Occupancy | 2,297 | 2,354 | (2) | 1,717 | 34 | ||||||||
| Marketing and advertising | 658 | 648 | 2 | 399 | 65 | ||||||||
| Data processing and communication | 2,284 | 2,533 | (10) | 2,118 | 8 | ||||||||
| Professional fees | 331 | 475 | (30) | 234 | 41 | ||||||||
| Forms, printing and supplies | 185 | 253 | (27) | 158 | 17 | ||||||||
| Franchise and shares tax | 633 | 391 | 62 | 360 | 76 | ||||||||
| Regulatory fees | 467 | 698 | (33) | 301 | 55 | ||||||||
| Foreclosed assets, net | 101 | (10) | 1110 | 74 | 36 | ||||||||
| Amortization of acquisition intangible | 453 | 454 | — | 291 | 56 | ||||||||
| Provision for credit losses on unfunded commitments | 146 | — | — | — | — | ||||||||
| Other expenses | 1,040 | 1,386 | (25) | 970 | 7 | ||||||||
| Total noninterest expense | 20,723 | 21,765 | (5) | 16,431 | 26 | ||||||||
| Income before income tax expense | 13,032 | 10,571 | 23 | 18,471 | (29) | ||||||||
| Income tax expense | 2,598 | 2,110 | 23 | 3,412 | (24) | ||||||||
| Net income | $ | 10,434 | $ | 8,461 | 23 | $ | 15,059 | (31) | |||||
| Earnings per share - basic | $ | 1.29 | $ | 1.04 | 24 | % | $ | 1.80 | (28) | % | |||
| Earnings per share - diluted | $ | 1.28 | $ | 1.03 | 24 | % | $ | 1.79 | (28) | % | |||
| Cash dividends declared per common share | $ | 0.23 | $ | 0.23 | — | % | $ | 0.23 | — | % | |||
| HOME BANCORP, INC. AND SUBSIDIARY | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| SUMMARY FINANCIAL INFORMATION | |||||||||||||
| (Unaudited) | |||||||||||||
| Quarter Ended | |||||||||||||
| (dollars in thousands, except per share data) | 9/30/2022 | 6/30/2022 | % Change | 9/30/2021 | % Change | ||||||||
| EARNINGS DATA | |||||||||||||
| Total interest income | $ | 34,264 | $ | 30,505 | 12 | % | $ | 28,423 | 21 | % | |||
| Total interest expense | 2,287 | 1,264 | 81 | 1,289 | 77 | ||||||||
| Net interest income | 31,977 | 29,241 | 9 | 27,134 | 18 | ||||||||
| (Reversal) provision for loan losses | 1,696 | 591 | 187 | (2,385) | 171 | ||||||||
| Total noninterest income | 3,474 | 3,686 | (6) | 5,383 | (35) | ||||||||
| Total noninterest expense | 20,723 | 21,765 | (5) | 16,431 | 26 | ||||||||
| Income tax expense | 2,598 | 2,110 | 23 | 3,412 | (24) | ||||||||
| Net income | $ | 10,434 | $ | 8,461 | 23 | $ | 15,059 | (31) | |||||
| AVERAGE BALANCE SHEET DATA | |||||||||||||
| Total assets | $ | 3,265,907 | $ | 3,295,196 | (1) | % | $ | 2,756,353 | 18 | % | |||
| Total interest-earning assets | 3,060,273 | 3,088,839 | (1) | 2,563,981 | 19 | ||||||||
| Total loans | 2,265,846 | 2,190,721 | 3 | 1,896,808 | 19 | ||||||||
| PPP loans | 9,431 | 15,463 | (39) | 144,626 | (93) | ||||||||
| Total interest-bearing deposits | 1,894,275 | 1,990,485 | (5) | 1,645,047 | 15 | ||||||||
| Total interest-bearing liabilities | 1,978,734 | 2,022,479 | (2) | 1,677,597 | 18 | ||||||||
| Total deposits | 2,818,318 | 2,906,568 | (3) | 2,358,086 | 20 | ||||||||
| Total shareholders' equity | 335,053 | 332,640 | 1 | 342,189 | (2) | ||||||||
| PER SHARE DATA | |||||||||||||
| Earnings per share - basic | $ | 1.29 | $ | 1.04 | 24 | % | $ | 1.80 | (28) | % | |||
| Earnings per share - diluted | 1.28 | 1.03 | 24 | 1.79 | (28) | ||||||||
| Book value at period end | 38.27 | 39.44 | (3) | 40.38 | (5) | ||||||||
| Tangible book value at period end | 27.66 | 28.86 | (4) | 33.08 | (16) | ||||||||
| Shares outstanding at period end | 8,273,334 | 8,344,095 | (1) | 8,523,473 | (3) | ||||||||
| Weighted average shares outstanding | |||||||||||||
| Basic | 8,089,246 | 8,129,340 | — | % | 8,354,176 | (3) | % | ||||||
| Diluted | 8,138,307 | 8,185,595 | (1) | 8,405,610 | (3) | ||||||||
| SELECTED RATIOS (1) | |||||||||||||
| Return on average assets | 1.27 | % | 1.03 | % | 23 | % | 2.17 | % | (41) | % | |||
| Return on average equity | 12.35 | 10.20 | 21 | 17.46 | (29) | ||||||||
| Common equity ratio | 10.00 | 9.79 | 2 | 12.45 | (20) | ||||||||
| Efficiency ratio (2) | 58.45 | 66.10 | (12) | 50.53 | 16 | ||||||||
| Average equity to average assets | 10.26 | 10.09 | 2 | 12.41 | (17) | ||||||||
| Tier 1 leverage capital ratio (3) | 9.76 | 9.30 | 5 | 10.05 | (3) | ||||||||
| Total risk-based capital ratio (3) | 13.50 | 13.74 | (2) | 15.60 | (13) | ||||||||
| Net interest margin (4) | 4.11 | 3.76 | 9 | 4.16 | (1) | ||||||||
| SELECTED NON-GAAP RATIOS (1) | |||||||||||||
| Tangible common equity ratio (5) | 7.43 | % | 7.36 | % | 1 | % | 10.44 | % | (29) | % | |||
| Return on average tangible common equity (6) | 17.34 | 14.43 | 20 | 21.68 | (20) |
(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.
| HOME BANCORP, INC. AND SUBSIDIARY | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SUMMARY CREDIT QUALITY INFORMATION | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| 9/30/2022 | 6/30/2022 | 9/30/2021 | |||||||||||||||||||
| (dollars in thousands) | Originated | Acquired | Total | Originated | Acquired | Total | Originated | Acquired | Total | ||||||||||||
| CREDIT QUALITY (1) | |||||||||||||||||||||
| Nonaccrual loans(2) | $ | 4,281 | $ | 12,799 | $ | 17,080 | $ | 5,332 | $ | 13,165 | $ | 18,497 | $ | 8,592 | $ | 5,896 | $ | 14,488 | |||
| Accruing loans 90 days or more past due | 3 | — | 3 | 8 | — | 8 | 13 | — | 13 | ||||||||||||
| Total nonperforming loans | 4,284 | 12,799 | 17,083 | 5,340 | 13,165 | 18,505 | 8,605 | 5,896 | 14,501 | ||||||||||||
| Foreclosed assets and ORE | 14 | 376 | 390 | — | 277 | 277 | 772 | 259 | 1,031 | ||||||||||||
| Total nonperforming assets | 4,298 | 13,175 | 17,473 | 5,340 | 13,442 | 18,782 | 9,377 | 6,155 | 15,532 | ||||||||||||
| Performing troubled debt restructurings | 4,686 | 879 | 5,565 | 3,939 | 1,063 | 5,002 | 3,961 | 1,085 | 5,046 | ||||||||||||
| Total nonperforming assets and troubled debt restructurings | $ | 8,984 | $ | 14,054 | $ | 23,038 | $ | 9,279 | $ | 14,505 | $ | 23,784 | $ | 13,338 | $ | 7,240 | $ | 20,578 | |||
| Nonperforming assets to total assets | 0.55 | % | 0.56 | % | 0.56 | % | |||||||||||||||
| Nonperforming loans to total assets | 0.54 | 0.55 | 0.52 | ||||||||||||||||||
| Nonperforming loans to total loans | 0.74 | 0.83 | 0.77 |
(1)It is our policy to cease accruing interest on loans 90 days or more past due, with certain limited exceptions. 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 $3.3 million, $5.3 million and $4.1 million at September 30, 2022, June 30, 2022 and September 30, 2021, respectively. Acquired restructured loans placed on nonaccrual totaled $3.2 million, $2.8 million and $3.5 million at September 30, 2022, June 30, 2022 and September 30, 2021, respectively.
| HOME BANCORP, INC. AND SUBSIDIARY | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SUMMARY CREDIT QUALITY INFORMATION - CONTINUED | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| 9/30/2022 | 6/30/2022 | 9/30/2021 | |||||||||||||||||||
| Collectively Evaluated | Individually Evaluated | Total | Collectively Evaluated | Individually Evaluated | Total | Collectively Evaluated | Individually Evaluated | Total | |||||||||||||
| ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||||||||
| One- to four-family first mortgage | $ | 2,293 | $ | 32 | $ | 2,325 | $ | 2,158 | $ | — | $ | 2,158 | $ | 2,145 | $ | — | $ | 2,145 | |||
| Home equity loans and lines | 500 | — | 500 | 491 | — | 491 | 521 | — | 521 | ||||||||||||
| Commercial real estate | 12,504 | 1,193 | 13,697 | 12,068 | 1,193 | 13,261 | 12,872 | 455 | 13,327 | ||||||||||||
| Construction and land | 4,973 | — | 4,973 | 4,689 | — | 4,689 | 3,628 | — | 3,628 | ||||||||||||
| Multi-family residential | 498 | — | 498 | 526 | — | 526 | 627 | — | 627 | ||||||||||||
| Commercial and industrial | 4,523 | 188 | 4,711 | 3,654 | 591 | 4,245 | 2,815 | 435 | 3,250 | ||||||||||||
| Consumer | 647 | — | 647 | 650 | — | 650 | 651 | — | 651 | ||||||||||||
| Total allowance for credit losses | $ | 25,938 | $ | 1,413 | $ | 27,351 | $ | 24,236 | $ | 1,784 | $ | 26,020 | $ | 23,259 | $ | 890 | $ | 24,149 | |||
| Unfunded lending commitments(3) | 2,263 | — | 2,263 | 2,117 | — | 2,117 | 1,800 | — | 1,800 | ||||||||||||
| Total allowance for credit losses | $ | 28,201 | $ | 1,413 | $ | 29,614 | $ | 26,353 | $ | 1,784 | $ | 28,137 | $ | 25,059 | $ | 890 | $ | 25,949 | |||
| Allowance for loan losses to nonperforming assets | 156.53 | % | 138.54 | % | 155.48 | % | |||||||||||||||
| Allowance for loan losses to nonperforming loans | 160.11 | % | 140.61 | % | 166.53 | % | |||||||||||||||
| Allowance for loan losses to total loans | 1.19 | % | 1.17 | % | 1.29 | % | |||||||||||||||
| Allowance for credit losses to total loans | 1.29 | % | 1.26 | % | 1.38 | % | |||||||||||||||
| Year-to-date loan charge-offs | $ | 1,260 | $ | 844 | $ | 1,807 | |||||||||||||||
| Year-to-date loan recoveries | 605 | 554 | 506 | ||||||||||||||||||
| Year-to-date net loan charge-offs | $ | 655 | $ | 290 | $ | 1,301 | |||||||||||||||
| Annualized YTD net loan charge-offs to average loans | 0.04 | % | 0.03 | % | 0.09 | % |
(3)The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.
12