HBCP Home Bancorp Inc

LAFAYETTE, La., April 24, 2012 /PRNewswire/ -- Home Bancorp, Inc. (Nasdaq:  "HBCP") (the "Company"), the parent company for Home Bank (www.home24bank.com), a Federally chartered savings bank headquartered in Lafayette, Louisiana (the "Bank"), announced net income of $2.1 million for the first quarter of 2012, a decrease of $74,000, or 3%, compared to the fourth quarter of 2011 and an increase of $1.3 million, or 159%, compared to the first quarter of 2011.  Diluted earnings per share were $0.29 for the first quarter of 2012, compared to $0.30 for the fourth quarter of 2011 and $0.11 for the first quarter of 2011.

"We continue to benefit from the vibrancy of the South Louisiana economy," stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank.  "In what has traditionally been a slow quarter for South Louisiana banks, our loan portfolio grew at an annualized rate of 7% during the first three months of 2012.  That growth was spread across each of our markets."

"Although the national economic landscape remains uncertain," added Mr. Bordelon, "our customers are focused on doing what they do best – creating jobs and moving Louisiana forward."

Acquisition of GS Financial Corp.

As previously reported, the Company completed the acquisition of GS Financial Corp. ("GSFC"), the former holding company of Guaranty Savings Bank of Metairie, Louisiana, on July 15, 2011.  As a result of the transaction, the Company acquired $256.7 million of assets, including loans of $182.4 million, and $230.6 million in deposits and other liabilities.  

Loans and Credit Quality

The Company's total loans were $678.7 million at March 31, 2012, an increase of $12.3 million, or 2%, from December 31, 2011, and an increase of $236.7 million, or 54%, from March 31, 2011.  First quarter 2012 loan growth related primarily to commercial real estate loans (up $11.0 million) and construction and land loans (up $7.1 million).  These increases were partially offset by decreases in one- to four-family first mortgage loans (down $4.0 million), home equity loans and lines (down $2.3 million) and commercial and industrial loans (down $1.1 million). 

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

Nonperforming assets ("NPAs"), which include $15.6 million in assets covered under loss sharing agreements with the FDIC ("Covered Assets"), totaled $34.1 million at March 31, 2012, an increase of $3.6 million compared to December 31, 2011 and an increase of $12.1 million compared to March 31, 2011.    Excluding Covered Assets, the ratio of NPAs to total assets was 2.01% at March 31, 2012, compared to 1.55% at December 31, 2011 and 0.19% at March 31, 2011.  The increase in NPAs during the first quarter of 2012 relates primarily to a $5.4 million commercial real estate loan which was placed on nonaccrual status during the quarter.  The increase in NPAs compared to the first quarter of 2011 was due primarily to the NPAs acquired through our acquisition of GSFC in July 2011.  NPAs acquired from GSFC totaled $9.6 million at the date of acquisition.

The Company recorded net loan charge-offs of $3,000 during the first quarter of 2012, compared to net loan recoveries of $7,000 in the fourth quarter of 2011 and net loan charge-offs of $3,000 during the first quarter of 2011. 

The Company's provision for loan losses for the first quarter of 2012 was $712,000, compared to $568,000 for the fourth quarter of 2011 and $102,000 for the first quarter of 2011.  The increases compared to the fourth and first quarters of 2011 are primarily attributable to the nonperforming commercial real estate loan mentioned above, modest downgrades of certain other loans and loan growth.

At March 31, 2012, the Company's ratio of allowance for loan losses to total loans was 0.86%, compared to 0.77% and 0.91% at December 31, 2011 and March 31, 2011, respectively.  The increase in the ratio of allowance for loan losses to total loans during the first quarter was due to downgrades of certain loans described above and loan growth.  The decrease in the first quarter 2012 ratio of allowance for loan losses to total loans compared to first quarter 2011 relates primarily to the acquisition of GSFC's loans.  Under accounting rules generally accepted in the United States, an acquirer may not carry over the acquiree's allowance for loan losses.  Instead, the acquirer must estimate the fair value of the cash flows expected to be derived from the acquired loan portfolio.  Management has included its credit loss expectations in the acquired loan portfolio's cash flow assumptions used to derive the portfolio's fair value.  Hence, management believes that expected credit losses in the acquired loan portfolio have been appropriately addressed in the fair value adjustments recorded on the acquired loan portfolio.  Ongoing evaluations of the acquired loan portfolio may result in additional provisions for the acquired loans.  Excluding acquired loans, the ratio of allowance for loan losses to total loans was 1.22% at March 31, 2012, compared to 1.14% at December 31, 2011 and 1.10% at March 31, 2011. 

Investment Securities Portfolio

The Company's investment securities portfolio totaled $164.1 million at March 31, 2012, an increase of $5.3 million, or 3%, from December 31, 2011, and an increase of $22.4 million, or 16%, from March 31, 2011.  At March 31, 2012, the Company had a net unrealized gain position on its investment securities portfolio of $4.0 million, compared to a net unrealized gain of $2.6 million and a net unrealized gain of $1.6 million at December 31, 2011 and March 31, 2011, respectively.  At March 31, 2012, the investment securities portfolio had a modified duration of 3.2 years.

The Company maintains a portfolio of non-agency mortgage-backed securities, which had an amortized cost of $14.3 million at March 31, 2012.  Each of these securities is rated investment grade by Standard & Poor's and/or Moody's.

Deposits

Core deposits (i.e., checking, savings and money market accounts) increased for the eleventh consecutive quarter, posting growth of $12.6 million, or 3%, during the first three months of 2012.  Total deposits were $736.2 million at March 31, 2012, an increase of $5.4 million, or 1%, from December 31, 2011, and an increase of $192.5 million, or 35%, from March 31, 2011.  The Company acquired $193.5 million in deposits through the acquisition of GSFC in July 2011.      

The following table sets forth the composition of the Company's deposits at the dates indicated.

Share Repurchases

The Company purchased 4,590 shares of its common stock during the first quarter of 2012 at an average price per share of $15.91 under the share repurchase plan announced in May 2011.  The Company may repurchase up to 402,835 shares, or approximately 5%, of the Company's outstanding common stock under the May 2011 plan.  As of April 19, 2012, the Company has purchased 313,865 shares under the plan at an average price per share of $14.62; hence, 88,970 additional shares remain eligible for purchase under the plan.  The tangible book value per share of the Company's common stock was $17.42 at March 31, 2012.

Net Interest Income

Net interest income for the first quarter of 2012 totaled $10.0 million, essentially unchanged compared to the fourth quarter of 2011, and an increase of $3.1 million, or 45%, compared to the first quarter of 2011.  The addition of GSFC's interest-earning assets and interest-bearing liabilities accounted for the vast majority of the increase compared to the same quarter last year.  The Company's net interest margin was 4.69% for the first quarter of 2012, three basis points higher than the fourth quarter of 2011 and two basis points higher than the first quarter of 2011.  

The following table sets forth the Company's average volume and rate of its interest-earning assets and interest-bearing liabilities for the periods indicated.

Noninterest Income

Noninterest income for the first quarter of 2012 totaled $1.7 million, a decrease of $158,000, or 9%, compared to the fourth quarter of 2011 and an increase of $478,000, or 39%, compared to the first quarter of 2011.  The decrease in noninterest income in the first quarter of 2012 compared to the fourth quarter of 2011 resulted primarily from lower gains on the sale of mortgage loans of $194,000. 

The increase in noninterest income in the first quarter of 2012 compared to the first quarter of 2011 was primarily the result of increased gains on the sale of mortgage loans of $222,000 and the absence of losses on the sale of securities, which totaled $166,000 during the first quarter of 2011.  Additionally, service fees and charges and bank card fees increased when comparing the first quarter of 2012 to the first quarter of 2011 as a result of the accounts added through our acquisition of GSFC and organic customer growth.    

Noninterest Expense

Noninterest expense for the first quarter of 2012 totaled $7.8 million, a decrease of $274,000, or 3%, compared to the fourth quarter of 2011 and an increase of $1.1 million, or 16%, compared the first quarter of 2011.  The decrease in noninterest expense in the first quarter of 2012 compared to the fourth quarter of 2011 resulted primarily from a decrease in marketing and advertising expenses of $161,000 and occupancy expenses of $105,000. 

The increase in noninterest expense in the first quarter of 2012 compared to the first quarter of 2011 was primarily due to higher compensation and benefits, occupancy and data processing and communication expenses primarily reflecting our increase in offices and employees as a result of the GSFC acquisition.  Additionally, expenses related to foreclosed assets increased during the first quarter of 2012 compared to the same quarter a year ago due primarily to resolution costs related to NPAs acquired in the GSFC acquisition. 

This news release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). The Company's management uses this non-GAAP financial information in its analysis of the Company's performance. In this news release, information is included which excludes acquired loans. Management believes the presentation of this non-GAAP financial information provides useful information that is essential to a proper understanding of the Company's financial position and core operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial information presented by other companies.

This news release contains certain forward‑looking statements. Forward‑looking statements can be identified by the fact that they do not relate strictly to historical or current facts.  They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may."

Forward‑looking statements, by their nature, are subject to risks and uncertainties.  A number of factors ‑ many of which are beyond our control ‑ could cause actual conditions, events or results to differ significantly from those described in the forward‑looking statements.  Home Bancorp's Annual Report on Form 10-K for the year ended December 31, 2011, describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for losses on loans, risks of our growth strategy, geographic concentration of our business, dependence on our management team, risks of market rates of interest and of regulation on our business and risks of competition. Forward‑looking statements speak only as of the date they are made.  We do not undertake to update forward‑looking statements to reflect circumstances or events that occur after the date the forward‑looking statements are made or to reflect the occurrence of unanticipated events.