HBCP Home Bancorp Inc

LAFAYETTE, La., Oct. 30 /PRNewswire-FirstCall/ -- Home Bancorp, Inc. (NASDAQ:HBCP) (the "Company"), the holding company for Home Bank (http://www.home24bank.com/), a Federally chartered savings bank headquartered in Lafayette, Louisiana (the "Bank"), announced net income of $1.4 million for the third quarter of 2008, an increase of $409,000, or 42%, compared to the third quarter of 2007. Net income for the first nine months of 2008 was $3.5 million, an increase of $601,000, or 21%, compared to the first nine months of 2007. John W. Bordelon, President and Chief Executive Officer of the Company and the Bank, stated, "At a time when anxiety in the U.S. financial system is at an all time high, our initial public offering raised over $89 million -- further bolstering our strong capital position. We begin our second century of service well positioned to serve our customers and expand our company." "On behalf of our Board of Directors and executive management team, I want to express our deep appreciation to Home Bank's employees for their incredible loyalty and dedication to serving our customers and growing our company," added Mr. Bordelon. "We would not be in this position of strength without their tremendous efforts." Mutual to Stock Conversion The Company completed its initial public stock offering on October 2, 2008, and began trading on the Nasdaq Global Market on October 3, 2008. The Company issued 8,926,875 shares of its common stock for an aggregate of $89,268,750 in total offering proceeds. The net proceeds of approximately $87 million will be reflected in the Company's shareholders' equity at December 31, 2008. Baton Rouge Expansion Home Bank opened its first full-service branch in Baton Rouge in September 2008. The Bank also operates a loan production office in Baton Rouge and expects to open its second full-service Baton Rouge branch in December. Loans and Credit Quality Loans totaled $317.6 million at September 30, 2008, an increase of $20.1 million, or 7%, from September 30, 2007, and an increase of $2.4 million, or 1%, from June 30, 2008. The majority ($7.9 million) of the Bank's 2008 loan growth relates to commercial real estate loans. Contrary to the national economy, south central Louisiana continues to enjoy relatively strong economic activity. The Company recorded a $93,000 provision for loan losses in the third quarter of 2008, compared to $59,000 during the third quarter of 2007 and $98,000 in the second quarter of 2008. Net loan charge-offs for the first nine months of 2008 were $85,000, or 0.04%, of average loans outstanding on an annualized basis, compared to $30,000 for the first nine months of 2007. Non-performing assets totaled $638,000, or 0.13%, of total assets, at September 30, 2008, compared to $1.3 million and $836,000 at September 30, 2007 and June 30, 2008, respectively. As of September 30, 2008, the allowance for loan losses as a percentage of total loans was 0.75%, compared to 0.71% and 0.75% at September 30, 2007 and June 30, 2008, respectively. Investment Securities Portfolio The Bank's investment securities portfolio totaled $80.2 million at September 30, 2008, an increase of $28.7 million, or 56%, from September 30, 2007, and an increase of $11.2 million, or 16%, from June 30, 2008. At September 30, 2008, the Bank had an unrealized loss position on its investment securities portfolio of $2.5 million, compared to an unrealized gain of $66,000 at December 31, 2007. The unrealized loss relates primarily to the Bank's non-agency (private-label) mortgage-backed securities holdings, which amounted to $47.5 million, or 9% of total assets, at September 30, 2008. The decline in the recorded value of this portfolio reflects broker quotes which, in the current market, include liquidations and distressed sales. Based on management's review of the securities and the Bank's intent and ability to hold the securities until maturity, such non-agency mortgage-backed securities are not deemed to be other than temporarily impaired at September 30, 2008. The Company holds no Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) preferred stock. Deposits Deposits totaled $353.5 million at September 30, 2008, an increase of $8.2 million, or 2%, from September 30, 2007, and a decrease of $2.3 million, or 1%, from June 30, 2008. The Bank's focus has been on growing core deposits (i.e., checking, savings and money market accounts). As of September 30, 2008, core deposits have increased $13.4 million, or 8%, during 2008. Accrued interest payable and other liabilities totaled $82.5 million at September 30, 2008, an increase of $79.8 million from June 30, 2008. This increase resulted from cash receipts for subscriptions to purchase shares of the Company's common stock in its initial public offering. The net proceeds of the initial public offering will be reflected in the Company's shareholders' equity at December 31, 2008. Net Interest Income Net interest income for the third quarter of 2008 totaled $4.6 million, an increase of $836,000, or 22%, compared to the third quarter of 2007, and an increase of $432,000, or 10%, compared to the second quarter of 2008. The Bank's net interest margin was 4.19% for the third quarter of 2008, 34 basis points higher than the same quarter a year ago and 22 basis points higher than the second quarter of 2008. Average interest-earning assets totaled $442.1 million for the quarter ended September 30, 2008, which represents increases of 12% and 5% compared to the quarters ended September 30, 2007 and June 30, 2008, respectively. The average yield on interest-earning assets for the quarter ended September 30, 2008 was 6.14%, which represents decreases of 31 and 2 basis points compared to the quarters ended September 30, 2007 and June 30, 2008, respectively. Average interest-bearing liabilities totaled $335.5 million for the quarter ended September 30, 2008, an increase of 11% and 1% compared to the quarters ended September 30, 2007 and June 30, 2008, respectively. The average rate paid on interest-bearing liabilities for the quarter ended September 30, 2008 was 2.57%, which represents decreases of 81 and 22 basis points compared to the quarters ended September 30, 2007 and June 30, 2008, respectively. Noninterest Income Noninterest income for the third quarter of 2008 was $971,000, an increase of $200,000, or 26%, compared to the same quarter a year ago. The primary reasons for the increase in noninterest income compared to the same quarter last year were higher levels of service fees and charges (up 25%) and income from bank-owned life insurance policies purchased during the fourth quarter of 2007. Compared to the quarter ended June 30, 2008, noninterest income decreased $69,000, or 7%, due to reduced service fees and charges and gains on the sale of mortgage loans. Noninterest Expense Noninterest expense for the third quarter of 2008 was $3.4 million, an increase of $386,000, or 13%, compared to the same quarter a year ago. The primary reason for the increase in noninterest expense compared to the same quarter last year was compensation and benefits expense, which increased $314,000, or 17%, due mostly to the Bank's expansion. Compared to the quarter ended June 30, 2008, noninterest expense decreased $67,000, or 2%. The primary reasons for the decrease in noninterest expense from the previous quarter were lower marketing and data processing expenses. 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 prospectus, dated August 12, 2008, describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for losses on loans, risks of our growth strategy, geographic concentration of our business, dependence on our management team, risks of market rates of interest and of regulation on our business and risks of competition. Forward-looking statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events. HOME BANK CONDENSED STATEMENTS OF FINANCIAL CONDITION September 30, September 30, % June 30, December 31, 2008 2007 Change 2008 2007 Assets Cash and cash equivalents $60,389,012 $19,226,509 214% $14,453,603 $11,746,082 Interest- bearing deposits in banks 792,000 3,267,000 (76) 2,673,000 3,267,000 Cash invested at other ATM locations 20,697,177 17,986,931 15 25,842,389 17,142,751 Securities available for sale, at fair value 76,301,887 45,545,768 68 64,853,202 56,995,287 Securities held to maturity 3,870,154 5,907,947 (34) 4,082,337 4,693,288 Mortgage loans held for sale 281,200 1,366,200 (79) 535,000 1,174,650 Loans, net of unearned income 317,564,165 297,477,394 7 315,192,357 308,582,151 Allowance for loan losses (2,390,573) (2,121,158) 13 (2,377,968) (2,314,132) Loans, net 315,173,592 295,356,236 7 312,814,389 306,268,019 Office properties and equipment, net 13,489,704 10,704,202 26 12,005,024 11,687,580 Cash surrender value of bank-owned life insurance 5,201,472 - - 5,134,487 5,006,615 Accrued interest receivable and other assets 6,848,881 3,973,585 72 5,699,519 4,369,573 Total Assets $503,045,079 $403,334,378 25% $448,092,950 $422,350,845 Liabilities Deposits $353,476,182 $345,241,359 2% $355,760,365 $353,536,399 Federal Home Loan Bank advances 15,843,422 6,396,491 148 38,856,903 16,883,436 Accrued interest payable and other liabilities 82,537,048 2,706,480 2,950 2,716,604 2,547,890 Total Liabilities 451,856,652 354,344,330 28 397,333,872 372,967,725 Equity Retained earnings 52,854,168 48,930,514 8 51,461,993 49,339,479 Accumulated other comprehensive income (loss) (1,665,741) 59,534 (2,898) (702,915) 43,641 Total Equity 51,188,427 48,990,048 4 50,759,078 49,383,120 Total Liabilities and Equity $503,045,079 $403,334,378 25% $448,092,950 $422,350,845 HOME BANK CONDENSED STATEMENTS OF INCOME For The Three Months For The Nine Months Ended September 30, % Ended September 30, % 2008 2007 Change 2008 2007 Change Interest Income Loans, including fees $5,343,053 $5,165,621 3% $15,851,725 $15,063,115 5% Investment securities 1,035,622 613,962 69 2,719,522 1,896,429 43 Other investments and deposits 405,809 577,744 (30) 1,122,387 1,616,766 (31) Total interest income 6,784,484 6,357,327 7 19,693,634 18,576,310 6 Interest Expense Deposits 1,875,504 2,467,092 (24) 6,327,808 7,165,111 (12) Federal Home Loan Bank advances 280,141 97,837 186 683,442 205,271 233 Total interest expense 2,155,645 2,564,929 (16) 7,011,250 7,370,382 (5) Net interest income 4,628,839 3,792,398 22 12,682,384 11,205,928 13 Provision for loan losses 92,500 59,499 55 161,437 142,386 13 Net interest income after provision for loan losses 4,536,339 3,732,899 22 12,520,947 11,063,542 13 Noninterest Income Service fees and charges 705,167 563,310 25 2,118,281 1,674,573 26 Gain on sale of loans, net 41,555 83,498 (50) 192,553 218,321 (12) Net loss on sale of real estate owned - - - (3,488) - - Other income 224,248 123,796 81 636,554 361,393 76 Total noninterest income 970,970 770,604 26 2,943,900 2,254,287 31 Noninterest Expense Compensation and benefits 2,191,874 1,877,677 17 6,427,873 5,545,103 16 Occupancy 194,205 181,320 7 569,789 514,304 11 Marketing and advertising 82,241 111,249 (26) 340,268 334,329 Data processing and communication 197,078 186,511 6 664,609 624,703 6 Depreciation 203,282 202,176 1 606,362 606,528 (0) Other expenses 530,930 454,187 17 1,532,316 1,278,105 20 Total noninterest expense 3,399,610 3,013,120 13 10,141,217 8,903,072 14 Income before income tax expense 2,107,699 1,490,383 41 5,323,630 4,414,757 21 Income tax expense 715,524 506,730 41 1,808,941 1,501,017 21 Net Income $1,392,175 $983,653 42% $3,514,689 $2,913,740 21% HOME BANK SUMMARY FINANCIAL INFORMATION For the Quarter For The Quarter Ended Ended September 30, % June 30, % (dollars in thousands) 2008 2007 Change 2008 Change EARNINGS DATA Total interest income $6,785 $6,357 7% $6,504 4% Total interest expense 2,156 2,565 (16) 2,307 (7) Net interest income 4,629 3,792 22 4,197 10 Provision for loan losses (92) (59) 56 (98) (6) Total noninterest income 971 771 26 1,040 (7) Total noninterest expense 3,400 3,013 13 3,467 (2) Income tax expense 716 507 41 569 26 Net Income $1,392 $984 41 $1,103 26 AVERAGE BALANCE SHEET DATA Total assets $464,560 $407,927 14% $442,936 5% Earning assets 442,051 394,055 12 422,358 5 Loans 315,431 292,534 8 311,413 1 Interest bearing deposits 296,485 295,007 1 298,548 (1) Total deposits 359,210 347,624 3 356,153 1 Total equity 50,052 47,539 5 50,854 (2) SELECTED RATIOS Return on average assets 1.20% 0.96% 24% 1.00% 20% Return on average total equity 11.12 8.28 34 8.68 28 Efficiency ratio 60.71 66.03 (8) 66.20 (8) Average equity to average assets 10.77 11.65 (8) 11.48 (6) Core capital ratio 10.57 12.13 (13) 11.44 (8) Net interest margin 4.19 3.85 9 3.97 5 September 30, September 30, % June 30, % 2008 2007 Change 2008 Change CREDIT QUALITY Nonaccrual loans $552 $1,274 (57)% $787 (30)% Accruing loans past due 90 days and over - - - - - Total nonperforming loans 552 1,274 (57) 787 (30) Other real estate owned 86 42 105 49 76 Total nonperforming assets $638 $1,316 (52) $836 (24) Nonperforming assets to total assets 0.13% 0.33% (61)% 0.19% (32)% Allowance for loan losses to nonperforming assets 374.7 161.2 132 284.4 32 Allowance for loan losses to nonperforming loans 433.1 166.5 160 302.2 43 Allowance for loan losses to total loans 0.75 0.71 6 0.75 - Year-to-date charge-offs $123 $36 242% $35 251% Year-to-date recoveries 38 6 533 30 27 Year-to-date net charge-offs 85 30 183 5 1,600 Annualized YTD net charge-offs to total loans 0.04% 0.01% 177 0.00% 1,700 DATASOURCE: Home Bancorp, Inc. CONTACT: John W. Bordelon, President and CEO of Home Bancorp, Inc., +1-337-237-1960 Web site: http://www.home24bank.com/

Copyright