LAFAYETTE, La., April 28, 2020 /PRNewswire/ -- Home Bancorp,
Inc. (Nasdaq: "HBCP") (the "Company"), the parent company for Home
Bank, N.A. (the "Bank") (www.home24bank.com), reported financial
results for the first quarter of 2020. For the quarter, the
Company reported net income of $1.9
million, or $0.21 per diluted
common share ("diluted EPS"), compared to $6.6 million, or $0.73 diluted EPS, for the fourth quarter of
2019.
"Our year got off to a strong start with loan growth totaling
$24.8 million for the first quarter
of 2020," said John W. Bordelon,
President and Chief Executive Officer of the Company and the Bank,
"As the extent of the health and economic challenges resulting from
COVID-19 became more apparent in March, we shifted our focus to
providing payment relief to our customers most significantly
impacted by the crisis and by injecting cash into our communities
through the Small Business Association's ("SBA") Paycheck
Protection Program ("PPP"). That focus continues today."
"During these tough times, our customers need us to be there for
them," continued Bordelon. "I've been overwhelmed by the tremendous
efforts of our bankers who have worked day and night to ensure our
customers have access to the financial resources and tools they
need to manage through the many challenges brought on by this
health and economic crisis. As a company, we are so fortunate
to be in a strong financial position at a time when our customers
and communities need us to be strong. We're going to weather
this storm together, and come out stronger on the other side."
COVID-19 Response
The COVID-19 pandemic and its economic effects have had a
significant impact on customers in each of our markets. State and
local government stay-at-home orders have required schools,
restaurants, bars, health clubs and other businesses to close or
drastically limit their services. While banking operations have not
been restricted by such orders, we have adapted to protect our
employees and customers by working remotely as much as possible,
limiting branch service to drive-through and scheduled
appointments, enhancing cleaning procedures and maintaining
appropriate social distancing while in the office.
To give immediate financial support to our customers, the
Company began providing the following payment relief options in
mid-March:
- Deferral of principal and/or interest payments for up to three
months;
- Short-term working-capital lines of credit with up to six
months of interest only payments; and
- Refunds and waivers of certain fees and late charges.
The Company has also been active in providing SBA PPP loans.
Through April 24, 2020, our bankers
have funded or are currently in the process of funding
approximately 961 loans totaling $151.3
million under the PPP.
First Quarter 2020 Highlights
- Loans grew by $24.8 million, or
6% annualized, on a linked-quarter basis;
- On January 1, 2020, the Company
adopted the current expected credit loss ("CECL") framework, which
resulted in a $7.0 million, or 39%,
increase in the allowance for credit losses at the adoption
date;
- Our provision for loan losses totaled $6.3 million, reflecting our assessment of the
change in expected losses due primarily to the potential economic
impact of the COVID-19 pandemic as well as the significant decline
in wholesale market prices for oil and gas;
- The allowance for loan losses totaled $28.5 million, or 1.64% of total loans, at
March 31, 2020; the allowance for
credit losses, which includes the reserve for unfunded commitments,
totaled $31.6 million, or 1.82% of
total loans;
- Preliminary Tier 1 leverage capital and total risk-based
capital ratios were 10.84% and 15.19% at March 31, 2020, compared to 11.17% and 15.28% at
December 31, 2019; and
- Net interest margin increased four basis points to 4.18%, on a
linked quarter basis.
Loans
Loans grew by $24.8 million, or 6%
annualized, during the first quarter of 2020. The following table
summarizes the changes in the Company's loan portfolio from
December 31, 2019 to March 31, 2020.
|
|
March
31,
|
|
December
31,
|
|
Increase/(Decrease)
|
(dollars in
thousands)
|
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
One- to four-family
first mortgage
|
|
$
|
420,206
|
|
|
$
|
430,820
|
|
|
$
|
(10,614)
|
|
|
(2)
|
%
|
Home equity loans and
lines
|
|
78,011
|
|
|
79,812
|
|
|
(1,801)
|
|
|
(2)
|
|
Commercial real
estate
|
|
736,694
|
|
|
722,807
|
|
|
13,887
|
|
|
2
|
|
Construction and
land
|
|
205,392
|
|
|
195,748
|
|
|
9,644
|
|
|
5
|
|
Multi-family
residential
|
|
57,333
|
|
|
54,869
|
|
|
2,464
|
|
|
4
|
|
Total real estate
loans
|
|
1,497,636
|
|
|
1,484,056
|
|
|
13,580
|
|
|
1
|
|
Other
loans:
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
198,236
|
|
|
184,701
|
|
|
13,535
|
|
|
7
|
|
Consumer
|
|
43,270
|
|
|
45,604
|
|
|
(2,334)
|
|
|
(5)
|
|
Total other
loans
|
|
241,506
|
|
|
230,305
|
|
|
11,201
|
|
|
5
|
|
Total loans
|
|
$
|
1,739,142
|
|
|
$
|
1,714,361
|
|
|
$
|
24,781
|
|
|
1
|
%
|
Commercial real estate ("CRE") loan growth was primarily driven
by non-owner-occupied real estate loans in the Acadiana and
New Orleans markets. The growth
included a $4.7 million increase in
loans secured by hotels and short-term rentals. At March 31,
2020, non-owner-occupied CRE loans totaled $337.5 million, or 46% of total CRE loans,
compared to $326.6 million, or 45%,
at December 31, 2019.
Commercial and industrial ("C&I") loan growth was primarily
driven by non-energy-related lines of credit to customers in the
industrial services sector in the Acadiana and Baton Rouge markets.
Construction and land ("C&D") loan growth was primarily
driven by commercial building construction projects across our
Louisiana markets and two
multi-family redevelopment projects in New Orleans. The multi-family projects are
expected to be used as short-term rentals. At March 31, 2020,
hotel and short-term rental construction loans totaled $19.1 million, or 9% of total C&D loans,
compared to $14.2 million, or 7% of
total C&D loans, at December 31, 2019.
CECL Adoption
As of January 1, 2020, the Company adopted Accounting
Standards Update ("ASU") 2016-13, Financial Instruments - Credit
Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments, which introduced a new framework known as CECL.
The adoption of CECL resulted in a $7.0
million, or 39%, increase in the allowance for credit
losses ("ACL"), and a corresponding $4.7
million after-tax decrease in retained earnings. At
adoption, $1.0 million of the
increase in the ACL resulted from the utilization of previously
recorded discount on purchased credit impaired loans. At
January 1, 2020, the ratio of ACL, which includes the reserve
for unfunded commitments, to total loans was 1.45%, up 41 basis
points from 1.04% at December 31, 2019. The increase in the
ACL upon adoption of CECL primarily reflects a cumulative effect
adjustment due to the change in accounting methodology for the
credit risk associated with acquired loans (added $4.5 million) and reserves for unfunded lending
commitments (added $2.4 million).
The guidance under ASC Topic 326 did not have an impact on the
Company's held-to-maturity or available-for-sale debt
securities.
Credit Quality and Allowance for Credit Losses
Nonperforming assets ("NPAs") totaled $29.5 million, or 1.31% of total assets, and
$28.5 million, or 1.30% of total
assets, at March 31, 2020 and December 31, 2019,
respectively. The increase in NPAs at March
31, 2020 compared to December 31,
2019 primarily reflects the adoption of CECL as of
January 1, 2020. Due to the adoption
of CECL, purchased credit deteriorated ("PCD") loans of
$2.3 million were included in NPAs at
March 31, 2020. Prior to January 1, 2020, these loans
were classified as purchase credit impaired ("PCI") and, under
prior accounting policies, were not considered NPAs 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.
The Company recorded net loan charge-offs of $268,000 during the first quarter of 2020,
compared to net loan charge-offs of $443,000 for the fourth quarter of 2019.
Beginning in March 2020, in
response to the economic challenges brought on by the COVID-19
crisis, we began offering our borrowers payment relief options
primarily in the form of deferrals of principal and/or interest
payments for 90 days. At March 31, 2020, borrowers with
outstanding loan balances totaling $191.6
million, or 11% of total loans, were granted such payment
relief. At April 24, 2020, that
total has increased to $507.1
million, or 27% of total loans. Management anticipates
the level of deferrals will continue to grow the longer
stay-at-home orders remain in effect.
In addition to deferrals, the Company began offering short-term
working-capital lines of credit with up to six months of interest
only payments. Through March 31, 2020, the Company has
originated $500,000 in short-term
working capital lines of credit related to COVID-19 crisis relief.
Through April 24, 2020, that total
has increased to $1.1 million. At
March 31, 2020 and April, 24 2020 the outstanding balance of
these short-term lines totaled $28,000 and $380,000, respectively.
The provision for loan losses for the first quarter of 2020
totaled $6.3 million, up $5.5 million from the fourth quarter of 2019. The
first quarter provision for loan losses reflects the change in
expected losses due to the potential economic impact of the
COVID-19 pandemic and a significant decline in oil prices.
The following table provides a summary of the loan portfolio at
March 31, 2020, stratified by certain selected industry
segments, and related reserve builds during the first quarter of
2020.
|
|
Recorded
Investment
in Loans
|
|
CECL Adoption
Impact
|
|
Reserve
Build(1)
for
the
Quarter
Ended
|
|
Total
ACL
|
|
ACL to Total
Loans
|
|
|
March
31,
|
|
January
1,
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
(dollars in
thousands)
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
Retail CRE
|
|
$
|
159,483
|
|
|
$
|
573
|
|
|
$
|
744
|
|
|
$
|
2,728
|
|
|
1.71
|
%
|
Healthcare
|
|
145,795
|
|
|
161
|
|
|
175
|
|
|
1,918
|
|
|
1.32
|
|
Hotels and short-term
rentals
|
|
86,039
|
|
|
39
|
|
|
1,885
|
|
|
2,796
|
|
|
3.25
|
|
Restaurants and
bars
|
|
60,940
|
|
|
85
|
|
|
545
|
|
|
1,219
|
|
|
2.00
|
|
Energy
|
|
31,186
|
|
|
341
|
|
|
1,204
|
|
|
1,715
|
|
|
5.50
|
|
Credit cards
|
|
4,151
|
|
|
33
|
|
|
327
|
|
|
415
|
|
|
10.00
|
|
Other loans
|
|
1,251,548
|
|
|
3,401
|
|
|
1,109
|
|
|
17,699
|
|
|
1.41
|
|
Total
|
|
$
|
1,739,142
|
|
|
$
|
4,633
|
|
|
$
|
5,989
|
|
|
$
|
28,490
|
|
|
1.64
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Unfunded lending
commitments(2)
|
|
—
|
|
|
2,365
|
|
|
729
|
|
|
3,094
|
|
|
—
|
|
Total
|
|
$
|
1,739,142
|
|
|
$
|
6,998
|
|
|
$
|
6,718
|
|
|
$
|
31,584
|
|
|
1.82
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
"Reserve build"
represents the amount by which the provision for credit
losses ($6.3 million) exceeds net loan charge-offs ($268,000)
during the quarter ended March 31, 2020.
|
(2)
|
At March 31,
2020, the allowance of $3.1 million related to unfunded lending
commitments of $327.9 million. The ACL on unfunded lending
commitments is recorded within accrued interest payable and other
liabilities on the Consolidated Statements of Financial Condition
and the related provision is recorded in other noninterest expense
on the Consolidated Statements of Income.
|
Retail CRE
At March 31, 2020, outstanding retail CRE loans amounted to
$159.5 million, or 9% of our total
loan portfolio, and included retail strip shopping centers of
$76.8 million and convenience stores
of $23.1 million. The
weighted-average loan-to-value ("LTV") of the retail CRE loan
portfolio was approximately 48% at March 31, 2020. This loan
portfolio is concentrated in the following markets: Acadiana
($63.8 million, or 40%), New Orleans ($44.2
million, or 28%), Northshore ($31.0
million, or 19%) and Baton
Rouge ($22.2 million, or 14%).
In addition to retail CRE loans, our non-CRE-related retail loans
totaled less than $10 million at
March 31, 2020.
Healthcare
At March 31, 2020, outstanding loans to borrowers in the
healthcare industry amounted to $145.8
million, or 8% of our total loan portfolio. The
weighted-average LTV of the healthcare loan portfolio was
approximately 53% at March 31, 2020. CRE loans comprised
$111.7 million, or 77%, of the
healthcare loan portfolio at such date. Loans to the dental
industry totaled $33.5 million, or
23% of the healthcare loan portfolio at March 31, 2020.
Hotels and Short-term Rentals
At March 31, 2020, outstanding loans to borrowers in the
hotels and short-term rentals industry amounted to $86.0 million or 5% of our total loan portfolio.
Approximately 57% of this portfolio consists of short-term
rentals. The weighted-average LTV of the hotels and
short-term rentals loan portfolio was approximately 57% at
March 31, 2020. CRE loans comprised $60.9 million, or 71%, and C&D loans
comprised $19.1 million, or 22%, of
the hotels and short-term rentals loan portfolio at such date. This
loan portfolio is primarily located in the Greater New Orleans ($53.3 million, or 62%) and Acadiana ($26.7 million, or 31%) regions.
Restaurants and Bars
At March 31, 2020, outstanding loans to borrowers in the
restaurants and bars industry amounted to $60.9 million, or 4% of our total loan portfolio.
The weighted-average LTV of the restaurants and bars loan portfolio
was approximately 52% at March 31, 2020. CRE loans comprised
$55.0 million, or 90%, of this loan
portfolio at such date. Of total restaurants and bars loans,
$32.2 million, or 53%, relates to
nationally-recognized fast-food franchise restaurants. This loan
portfolio is concentrated in the following markets: Acadiana
($28.9 million, or 48%), Baton Rouge ($14.1
million, or 23%) and New
Orleans ($14.1 million, or
23%).
Energy
At March 31, 2020, outstanding
loans to borrowers in the energy industry amounted to $31.2 million, or 2% of our total loan
portfolio. This portfolio predominantly consists of loans to
energy service companies. The weighted-average LTV of the energy
loan portfolio was approximately 33% at March 31, 2020. At
March 31, 2020, CRE loans comprised $19.6 million, or 63%, of total energy-related
loans. Of total CRE energy-related loans, 93% are to borrowers in
the Acadiana market. At March 31, 2020, energy-related C&I
loans of $11.1 million primarily
consisted of loans secured by equipment ($7.1 million) and accounts receivable
($2.7 million).
Investment Securities
The following table summarizes the composition of the Company's
investment securities portfolio at March 31, 2020.
(dollars in
thousands)
|
|
Recorded
Investment
|
Available-for-sale
|
|
|
U.S. agency
mortgage-backed
|
|
$
|
106,984
|
|
Collateralized
mortgage obligations
|
|
134,736
|
|
Municipal
bonds
|
|
15,234
|
|
U.S. government
agency
|
|
6,639
|
|
Corporate
bonds
|
|
2,053
|
|
Total
available-for-sale
|
|
265,646
|
|
Held to
Maturity
|
|
|
Municipal
Bonds
|
|
6,607
|
|
Total investment
securities
|
|
$
|
272,253
|
|
|
|
|
Securities available-for-sale ("AFS") made up 98% of total
investment securities and net unrealized gains on AFS securities
totaled $6.9 million at
March 31, 2020.
Deposits
Total deposits increased $36.5
million, or 2.0%, from December 31, 2019 to
$1.9 billion at March 31, 2020.
The following table summarizes the changes in the Company's
deposits from December 31, 2019 to March 31, 2020.
|
|
March
31,
|
|
December
31,
|
|
Increase/(Decrease)
|
(dollars in
thousands)
|
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
Demand
deposits
|
|
$
|
455,512
|
|
|
$
|
437,828
|
|
|
$
|
17,684
|
|
|
4
|
%
|
Savings
|
|
206,597
|
|
|
201,887
|
|
|
4,710
|
|
|
2
|
|
Money
market
|
|
266,519
|
|
|
273,741
|
|
|
(7,222)
|
|
|
(3)
|
|
NOW
|
|
536,643
|
|
|
512,054
|
|
|
24,589
|
|
|
5
|
|
Certificates of
deposit
|
|
392,230
|
|
|
395,465
|
|
|
(3,235)
|
|
|
(1)
|
|
Total
deposits
|
|
$
|
1,857,501
|
|
|
$
|
1,820,975
|
|
|
$
|
36,526
|
|
|
2
|
%
|
At March 31, 2020, certificates of deposit maturing within
the next 12 months totaled $295.7
million.
The average rate on interest bearing deposits decreased six
basis points to 1.07% for the first quarter of 2020, compared to
1.13% for the fourth quarter of 2019. Management expects the
average rate on its deposits to continue to fall through the second
quarter of 2020.
Net Interest Income
The net interest margin increased four basis points from the
fourth quarter of 2019 to 4.18% in the first quarter of 2020,
primarily due to a six basis point decrease in the average rate on
total interest-bearing deposits. Loan accretion income totaled
$810,000 during the first quarter of
2020, down $172,000 from $982,000 for the fourth quarter of 2019. At
March 31, 2020, variable rate loans totaled $460.2 million, or 26% of total loans.
The following table summarizes the Company's average volume and
rate of its interest-earning assets and interest-bearing
liabilities for the periods indicated. Taxable equivalent
("TE") yields on investment securities are calculated using a
marginal tax rate of 21%.
|
|
For the Three
Months Ended
|
|
|
March 31,
2020
|
|
December 31,
2019
|
(dollars in
thousands)
|
|
Average
Balance
|
|
Interest
|
Average Yield/
Rate
|
|
Average
Balance
|
|
Interest
|
Average Yield/
Rate
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
|
$
|
1,735,224
|
|
|
$
|
23,699
|
|
5.43
|
%
|
|
$
|
1,712,035
|
|
|
$
|
23,842
|
|
5.48
|
%
|
Investment securities
(TE)
|
|
263,040
|
|
|
1,412
|
|
2.19
|
|
|
259,531
|
|
|
1,341
|
|
2.11
|
|
Other interest-earning
assets
|
|
28,002
|
|
|
138
|
|
1.99
|
|
|
49,750
|
|
|
261
|
|
2.08
|
|
Total interest-earning
assets
|
|
$
|
2,026,266
|
|
|
$
|
25,249
|
|
4.96
|
%
|
|
$
|
2,021,316
|
|
|
$
|
25,444
|
|
4.96
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
Savings, checking, and
money market
|
|
$
|
989,028
|
|
|
$
|
1,822
|
|
0.74
|
%
|
|
$
|
989,177
|
|
|
$
|
2,042
|
|
0.82
|
%
|
Certificates of
deposit
|
|
392,670
|
|
|
1,845
|
|
1.89
|
|
|
395,073
|
|
|
1,892
|
|
1.90
|
|
Total interest-bearing
deposits
|
|
1,381,698
|
|
|
3,667
|
|
1.07
|
|
|
1,384,250
|
|
|
3,934
|
|
1.13
|
|
Other
borrowings
|
|
5,539
|
|
|
53
|
|
3.86
|
|
|
5,539
|
|
|
54
|
|
3.80
|
|
FHLB
advances
|
|
45,729
|
|
|
206
|
|
1.80
|
|
|
43,570
|
|
|
198
|
|
1.82
|
|
Total interest-bearing
liabilities
|
|
$
|
1,432,966
|
|
|
$
|
3,926
|
|
1.10
|
%
|
|
$
|
1,433,359
|
|
|
$
|
4,186
|
|
1.16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread (TE)
|
|
|
|
|
3.86
|
%
|
|
|
|
|
3.80
|
%
|
Net interest
margin (TE)
|
|
|
|
|
4.18
|
%
|
|
|
|
|
4.14
|
%
|
Noninterest Income
Noninterest income for the first quarter of 2020 totaled
$3.4 million, down $141,000, or 4%, from the fourth quarter of 2019
due primarily to a decrease in service fees and charges (down
$80,000) and the change in accounting
for recoveries on acquired loans (down $77,000) due to the adoption of CECL.
Noninterest Expense
Noninterest expense for the first quarter of 2020 totaled
$16.1 million, up $394,000, or 3%, from the fourth quarter of 2019.
The increase in noninterest expense was primarily due to
$729,000 in provision for credit
losses on unfunded commitments for the first quarter of 2020,
partially offset by decreases in marketing and advertising expense
(down $281,000) and foreclosed asset
expense (down $211,000) over the
comparable periods. The provision for credit losses on unfunded
lending commitments is recorded in other noninterest expense on the
Consolidated Statements of Income.
Capital and Liquidity
The Company's tangible common equity ratio was 11.32% and 11.79%
at March 31, 2020 and December 31, 2019, respectively. At
March 31, 2020, the Bank's preliminary Tier 1 leverage capital
ratio was 10.84%, down 33 basis points from December 31, 2019,
and preliminary total risk-based capital ratio was 15.19%, down
nine basis points from December 31, 2019.
The following table summarizes the Company's primary and
secondary sources of liquidity.
|
|
March
31,
|
(dollars in
thousands)
|
|
2020
|
Cash and cash
equivalents
|
|
$
|
64,102
|
|
Unpledged investment
securities, par value
|
|
86,839
|
|
FHLB advance
availability
|
|
669,855
|
|
Unsecured lines of
credit
|
|
55,000
|
|
Federal Reserve
discount window availability
|
|
500
|
|
Total primary and
secondary liquidity
|
|
$
|
876,296
|
|
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
May 22, 2020, to shareholders of record as of May 11,
2020.
The Company repurchased 188,341 shares of its common stock
during the first quarter of 2020 at an average price per share of
$28.61, or an aggregate of
$5.4 million, under the Company's
2019 Repurchase Plan. An additional 198,243 shares remain eligible
for purchase under the 2019 Repurchase Plan. The book value
per share and tangible book value per share of the Company's common
stock was $34.35 and $27.28, respectively, at March 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. 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)
|
|
March 31,
2020
|
|
December 31,
2019
|
|
March 31,
2019
|
|
|
|
|
|
|
|
Reported net
income
|
|
$
|
1,905
|
|
|
$
|
6,606
|
|
|
$
|
7,890
|
|
Add: Core deposit
intangible amortization, net tax
|
|
279
|
|
|
302
|
|
|
324
|
|
Non-GAAP tangible
income
|
|
$
|
2,184
|
|
|
$
|
6,908
|
|
|
$
|
8,214
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
2,248,601
|
|
|
$
|
2,200,465
|
|
|
$
|
2,202,675
|
|
Less: Intangible
assets
|
|
64,119
|
|
|
64,472
|
|
|
65,645
|
|
Non-GAAP tangible
assets
|
|
$
|
2,184,482
|
|
|
$
|
2,135,993
|
|
|
$
|
2,137,030
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
$
|
311,497
|
|
|
$
|
316,329
|
|
|
$
|
308,935
|
|
Less: Intangible
assets
|
|
64,119
|
|
|
64,472
|
|
|
65,645
|
|
Non-GAAP tangible
shareholders' equity
|
|
$
|
247,378
|
|
|
$
|
251,857
|
|
|
$
|
243,290
|
|
|
|
|
|
|
|
|
Return on average
equity
|
|
2.43
|
%
|
|
10.45
|
%
|
|
8.31
|
%
|
Add: Average
intangible assets
|
|
1.07
|
|
|
0.48
|
|
|
5.55
|
|
Non-GAAP return on
average tangible common equity
|
|
3.50
|
%
|
|
10.93
|
%
|
|
13.86
|
%
|
|
|
|
|
|
|
|
Common equity
ratio
|
|
13.85
|
%
|
|
14.38
|
%
|
|
14.03
|
%
|
Less: Intangible
assets
|
|
2.53
|
|
|
2.59
|
|
|
2.65
|
|
Non-GAAP tangible
common equity ratio
|
|
11.32
|
%
|
|
11.79
|
%
|
|
11.38
|
%
|
|
|
|
|
|
|
|
Book value per
share
|
|
$
|
34.35
|
|
|
$
|
34.19
|
|
|
$
|
32.62
|
|
Less: Intangible
assets
|
|
7.07
|
|
|
6.97
|
|
|
6.93
|
|
Non-GAAP tangible
book value per share
|
|
$
|
27.28
|
|
|
$
|
27.22
|
|
|
$
|
25.69
|
|
|
|
|
|
|
|
|
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)
|
|
March 31,
2020
|
|
December 31,
2019
|
|
%
Change
|
|
March 31,
2019
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
64,102
|
|
|
$
|
39,847
|
|
|
61
|
%
|
|
$
|
103,786
|
|
Interest-bearing
deposits in banks
|
|
449
|
|
|
449
|
|
|
—
|
|
|
694
|
|
Investment securities
available for sale, at fair value
|
|
265,646
|
|
|
257,321
|
|
|
3
|
|
|
267,310
|
|
Investment securities
held to maturity
|
|
6,607
|
|
|
7,149
|
|
|
(8)
|
|
|
9,110
|
|
Mortgage loans held for
sale
|
|
9,753
|
|
|
6,990
|
|
|
40
|
|
|
1,986
|
|
Loans, net of unearned
income
|
|
1,739,142
|
|
|
1,714,361
|
|
|
1
|
|
|
1,648,968
|
|
Allowance for loan
losses
|
|
(28,490)
|
|
|
(17,868)
|
|
|
59
|
|
|
(16,570)
|
|
Total loans, net of
allowance for loan losses
|
|
1,710,652
|
|
|
1,696,493
|
|
|
1
|
|
|
1,632,398
|
|
Office properties and
equipment, net
|
|
46,541
|
|
|
46,425
|
|
|
—
|
|
|
47,030
|
|
Cash surrender value of
bank-owned life insurance
|
|
39,725
|
|
|
39,466
|
|
|
1
|
|
|
29,725
|
|
Goodwill and core
deposit intangibles
|
|
64,119
|
|
|
64,472
|
|
|
(1)
|
|
|
65,645
|
|
Accrued interest
receivable and other assets
|
|
41,007
|
|
|
41,853
|
|
|
(2)
|
|
|
44,991
|
|
Total
Assets
|
|
$
|
2,248,601
|
|
|
$
|
2,200,465
|
|
|
2
|
|
|
$
|
2,202,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
1,857,501
|
|
|
$
|
1,820,975
|
|
|
2
|
%
|
|
$
|
1,817,548
|
|
Other
Borrowings
|
|
5,539
|
|
|
5,539
|
|
|
—
|
|
|
5,539
|
|
Federal Home Loan Bank
advances
|
|
54,319
|
|
|
40,620
|
|
|
34
|
|
|
57,889
|
|
Accrued interest
payable and other liabilities
|
|
19,745
|
|
|
17,002
|
|
|
16
|
|
|
12,764
|
|
Total
Liabilities
|
|
1,937,104
|
|
|
1,884,136
|
|
|
3
|
|
|
1,893,740
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
Common stock
|
|
91
|
|
|
93
|
|
|
(2)
|
%
|
|
95
|
|
Additional paid-in
capital
|
|
167,249
|
|
|
168,545
|
|
|
(1)
|
|
|
169,091
|
|
Common stock acquired
by benefit plans
|
|
(3,063)
|
|
|
(3,159)
|
|
|
3
|
|
|
(3,443)
|
|
Retained
earnings
|
|
141,798
|
|
|
150,158
|
|
|
(6)
|
|
|
143,998
|
|
Accumulated other
comprehensive income (loss)
|
|
5,422
|
|
|
692
|
|
|
684
|
|
|
(806)
|
|
Total
Shareholders' Equity
|
|
311,497
|
|
|
316,329
|
|
|
(2)
|
|
|
308,935
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
2,248,601
|
|
|
$
|
2,200,465
|
|
|
2
|
|
|
$
|
2,202,675
|
|
HOMEBANCORP, INC.
AND SUBSIDIARY
|
CONDENSED
STATEMENTS OF INCOME
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
(dollars in
thousands, except per share data)
|
|
March 31,
2020
|
|
December 31,
2019
|
|
%
Change
|
|
March 31,
2019
|
|
%
Change
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
23,699
|
|
|
$
|
23,842
|
|
|
(1)
|
%
|
|
$
|
23,198
|
|
|
2
|
%
|
Investment
securities
|
|
1,412
|
|
|
1,341
|
|
|
5
|
|
|
1,808
|
|
|
(22)
|
|
Other investments and
deposits
|
|
138
|
|
|
261
|
|
|
(47)
|
|
|
363
|
|
|
(62)
|
|
Total interest
income
|
|
25,249
|
|
|
25,444
|
|
|
(1)
|
|
|
25,369
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
3,667
|
|
|
3,934
|
|
|
(7)
|
%
|
|
3,331
|
|
|
10
|
%
|
Other
borrowings
|
|
53
|
|
|
54
|
|
|
(2)
|
|
|
53
|
|
|
—
|
|
Federal Home Loan Bank
advances
|
|
206
|
|
|
198
|
|
|
4
|
|
|
263
|
|
|
(22)
|
|
Total interest
expense
|
|
3,926
|
|
|
4,186
|
|
|
(6)
|
|
|
3,647
|
|
|
8
|
|
Net interest
income
|
|
21,323
|
|
|
21,258
|
|
|
—
|
|
|
21,722
|
|
|
(2)
|
|
Provision for loan
losses
|
|
6,257
|
|
|
713
|
|
|
778
|
|
|
390
|
|
|
1504
|
|
Net interest income
after provision for loan losses
|
|
15,066
|
|
|
20,545
|
|
|
(27)
|
|
|
21,332
|
|
|
(29)
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
Service fees and
charges
|
|
1,464
|
|
|
1,544
|
|
|
(5)
|
%
|
|
1,467
|
|
|
—
|
%
|
Bank card
fees
|
|
1,137
|
|
|
1,102
|
|
|
3
|
|
|
1,061
|
|
|
7
|
|
Gain on sale of loans,
net
|
|
297
|
|
|
316
|
|
|
(6)
|
|
|
155
|
|
|
92
|
|
Income from bank-owned
life insurance
|
|
259
|
|
|
238
|
|
|
9
|
|
|
165
|
|
|
57
|
|
Gain on sale of
assets, net
|
|
2
|
|
|
1
|
|
|
100
|
|
|
(1)
|
|
|
300
|
|
Other
income
|
|
199
|
|
|
298
|
|
|
(33)
|
|
|
318
|
|
|
(37)
|
|
Total noninterest
income
|
|
3,358
|
|
|
3,499
|
|
|
(4)
|
|
|
3,165
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
9,416
|
|
|
9,438
|
|
|
—
|
%
|
|
9,098
|
|
|
3
|
%
|
Occupancy
|
|
1,736
|
|
|
1,713
|
|
|
1
|
|
|
1,606
|
|
|
8
|
|
Marketing and
advertising
|
|
298
|
|
|
579
|
|
|
(49)
|
|
|
271
|
|
|
10
|
|
Data processing and
communication
|
|
1,819
|
|
|
1,829
|
|
|
(1)
|
|
|
1,422
|
|
|
28
|
|
Professional
fees
|
|
213
|
|
|
172
|
|
|
24
|
|
|
239
|
|
|
(11)
|
|
Forms, printing and
supplies
|
|
171
|
|
|
169
|
|
|
1
|
|
|
161
|
|
|
6
|
|
Franchise and shares
tax
|
|
389
|
|
|
248
|
|
|
57
|
|
|
399
|
|
|
(3)
|
|
Regulatory
fees
|
|
116
|
|
|
113
|
|
|
3
|
|
|
307
|
|
|
(62)
|
|
Foreclosed assets,
net
|
|
17
|
|
|
228
|
|
|
(93)
|
|
|
241
|
|
|
(93)
|
|
Amortization of
acquisition intangible
|
|
353
|
|
|
382
|
|
|
(8)
|
|
|
410
|
|
|
(14)
|
|
Other
expenses
|
|
1,618
|
|
|
881
|
|
|
84
|
|
|
1,137
|
|
|
42
|
|
Total noninterest
expense
|
|
16,146
|
|
|
15,752
|
|
|
3
|
|
|
15,291
|
|
|
6
|
|
Income before income
tax expense
|
|
2,278
|
|
|
8,292
|
|
|
(73)
|
|
|
9,206
|
|
|
(75)
|
|
Income tax
expense
|
|
373
|
|
|
1,686
|
|
|
(78)
|
|
|
1,316
|
|
|
(72)
|
|
Net
income
|
|
$
|
1,905
|
|
|
$
|
6,606
|
|
|
(71)
|
|
|
$
|
7,890
|
|
|
(76)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
$
|
0.21
|
|
|
$
|
0.74
|
|
|
(72)
|
%
|
|
$
|
0.86
|
|
|
(76)
|
%
|
Earnings per share -
diluted
|
|
$
|
0.21
|
|
|
$
|
0.73
|
|
|
(71)
|
|
|
$
|
0.85
|
|
|
(75)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$
|
0.22
|
|
|
$
|
0.22
|
|
|
—
|
%
|
|
$
|
0.20
|
|
|
10
|
%
|
HOME BANCORP, INC.
AND SUBSIDIARY
|
SUMMARY FINANCIAL
INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
(dollars in
thousands, except per share data)
|
|
March 31,
2020
|
|
December 31,
2019
|
|
%
Change
|
|
March 31,
2019
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
DATA
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
|
$
|
25,249
|
|
|
$
|
25,444
|
|
|
(1)
|
%
|
|
$
|
25,369
|
|
|
—
|
%
|
Total interest
expense
|
|
3,926
|
|
|
4,186
|
|
|
(6)
|
|
|
3,647
|
|
|
8
|
|
Net interest
income
|
|
21,323
|
|
|
21,258
|
|
|
—
|
|
|
21,722
|
|
|
(2)
|
|
Provision for loan
losses
|
|
6,257
|
|
|
713
|
|
|
778
|
|
|
390
|
|
|
1504
|
|
Total noninterest
income
|
|
3,358
|
|
|
3,499
|
|
|
(4)
|
|
|
3,165
|
|
|
6
|
|
Total noninterest
expense
|
|
16,146
|
|
|
15,752
|
|
|
3
|
|
|
15,291
|
|
|
6
|
|
Income tax
expense
|
|
373
|
|
|
1,686
|
|
|
(78)
|
|
|
1,316
|
|
|
(72)
|
|
Net income
|
|
$
|
1,905
|
|
|
$
|
6,606
|
|
|
(71)
|
|
|
$
|
7,890
|
|
|
(76)
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
2,219,114
|
|
|
$
|
2,219,049
|
|
|
—
|
%
|
|
$
|
2,166,317
|
|
|
2
|
%
|
Total
interest-earning assets
|
|
2,026,266
|
|
|
2,021,316
|
|
|
—
|
|
|
1,977,921
|
|
|
2
|
|
Total
loans
|
|
1,735,224
|
|
|
1,712,035
|
|
|
1
|
|
|
1,649,626
|
|
|
5
|
|
Total
interest-bearing deposits
|
|
1,381,698
|
|
|
1,384,250
|
|
|
—
|
|
|
1,350,798
|
|
|
2
|
|
Total
interest-bearing liabilities
|
|
1,432,966
|
|
|
1,433,359
|
|
|
—
|
|
|
1,414,532
|
|
|
1
|
|
Total
deposits
|
|
1,833,848
|
|
|
1,835,026
|
|
|
—
|
|
|
1,786,181
|
|
|
3
|
|
Total shareholders'
equity
|
|
315,607
|
|
|
315,487
|
|
|
—
|
|
|
306,240
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED RATIOS
(1)
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
0.35
|
%
|
|
1.18
|
%
|
|
(70)
|
%
|
|
1.48
|
%
|
|
(76)
|
%
|
Return on average
equity
|
|
2.43
|
|
|
8.31
|
|
|
(71)
|
|
|
10.45
|
|
|
(77)
|
|
Common equity
ratio
|
|
13.85
|
|
|
14.38
|
|
|
(4)
|
|
|
14.03
|
|
|
(1)
|
|
Efficiency ratio
(2)
|
|
65.42
|
|
|
63.63
|
|
|
3
|
|
|
61.44
|
|
|
6
|
|
Average equity to
average assets
|
|
14.22
|
|
|
14.22
|
|
|
—
|
|
|
14.14
|
|
|
1
|
|
Tier 1 leverage
capital ratio (3)
|
|
10.84
|
|
|
11.17
|
|
|
(3)
|
|
|
10.93
|
|
|
(1)
|
|
Total risk-based
capital ratio (3)
|
|
15.19
|
|
|
15.28
|
|
|
(1)
|
|
|
15.27
|
|
|
(1)
|
|
Net interest margin
(4)
|
|
4.18
|
|
|
4.14
|
|
|
1
|
|
|
4.41
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED NON-GAAP
RATIOS (1)
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio (5)
|
|
11.32
|
%
|
|
11.79
|
%
|
|
(4)
|
%
|
|
11.38
|
%
|
|
(1)
|
%
|
Return on average
tangible common equity (6)
|
|
3.50
|
|
|
10.93
|
|
|
(68)
|
|
|
13.86
|
|
|
(75)
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
$
|
0.21
|
|
|
$
|
0.74
|
|
|
(72)
|
%
|
|
$
|
0.86
|
|
|
(76)
|
%
|
Earnings per share -
diluted
|
|
0.21
|
|
|
0.73
|
|
|
(71)
|
|
|
0.85
|
|
|
(75)
|
|
Book value at period
end
|
|
34.35
|
|
|
34.19
|
|
|
—
|
|
|
32.62
|
|
|
5
|
|
Tangible book value
at period end
|
|
27.28
|
|
|
27.22
|
|
|
—
|
|
|
25.69
|
|
|
6
|
|
Shares outstanding at
period end
|
|
9,067,920
|
|
|
9,252,418
|
|
|
(2)
|
|
|
9,471,857
|
|
|
(4)
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
8,883,261
|
|
|
8,953,203
|
|
|
(1)
|
%
|
|
9,123,786
|
|
|
(3)
|
%
|
Diluted
|
|
8,927,448
|
|
|
9,018,142
|
|
|
(1)
|
|
|
9,247,851
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
Estimated capital
ratios are end of period ratios for the Bank only.
|
(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)
|
|
|
March 31,
2020
|
|
December 31,
2019
|
|
March 31,
2019
|
(dollars in
thousands)
|
|
Originated
|
|
Acquired
|
|
Total
|
|
Originated
|
|
Acquired
|
|
Total
|
|
Originated
|
|
Acquired
|
|
Total
|
CREDIT QUALITY
(1) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans(3)
|
|
$
|
15,235
|
|
|
$
|
11,686
|
|
|
$
|
26,921
|
|
|
$
|
14,628
|
|
|
$
|
9,758
|
|
|
$
|
24,386
|
|
|
$
|
14,838
|
|
|
$
|
11,733
|
|
|
$
|
26,571
|
|
Accruing loans past due
90 days and over
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total nonperforming
loans
|
|
15,235
|
|
|
11,686
|
|
|
26,921
|
|
|
14,628
|
|
|
9,758
|
|
|
24,386
|
|
|
14,838
|
|
|
11,733
|
|
|
26,571
|
|
Foreclosed assets and
ORE
|
|
978
|
|
|
1,628
|
|
|
2,606
|
|
|
1,793
|
|
|
2,363
|
|
|
4,156
|
|
|
145
|
|
|
2,336
|
|
|
2,481
|
|
Total nonperforming
assets
|
|
16,213
|
|
|
13,314
|
|
|
29,527
|
|
|
16,421
|
|
|
12,121
|
|
|
28,542
|
|
|
14,983
|
|
|
14,069
|
|
|
29,052
|
|
Performing troubled
debt restructurings
|
|
989
|
|
|
695
|
|
|
1,684
|
|
|
1,903
|
|
|
475
|
|
|
2,378
|
|
|
1,131
|
|
|
219
|
|
|
1,350
|
|
Total nonperforming
assets and troubled debt restructurings
|
|
$
|
17,202
|
|
|
$
|
14,009
|
|
|
$
|
31,211
|
|
|
$
|
18,324
|
|
|
$
|
12,596
|
|
|
$
|
30,920
|
|
|
$
|
16,114
|
|
|
$
|
14,288
|
|
|
$
|
30,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
total assets
|
|
|
|
|
|
1.31
|
%
|
|
|
|
|
|
1.30
|
%
|
|
|
|
|
|
1.32
|
%
|
Nonperforming loans to
total assets
|
|
|
|
|
|
1.20
|
|
|
|
|
|
|
1.11
|
|
|
|
|
|
|
1.21
|
|
Nonperforming loans to
total loans
|
|
|
|
|
|
1.55
|
|
|
|
|
|
|
1.42
|
|
|
|
|
|
|
1.61
|
|
Allowance for loan
losses to nonperforming assets
|
|
|
|
|
|
96.49
|
|
|
|
|
|
|
62.60
|
|
|
|
|
|
|
57.04
|
|
Allowance for loan
losses to nonperforming loans
|
|
|
|
|
|
105.83
|
|
|
|
|
|
|
73.27
|
|
|
|
|
|
|
62.36
|
|
Allowance for loan
losses to total loans
|
|
|
|
|
|
1.64
|
|
|
|
|
|
|
1.04
|
|
|
|
|
|
|
1.00
|
|
Allowance for credit
losses to total loans(4)
|
|
|
|
|
|
1.82
|
|
|
|
|
|
|
1.04
|
|
|
|
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-date loan
charge-offs
|
|
|
|
|
|
$
|
387
|
|
|
|
|
|
|
$
|
1,577
|
|
|
|
|
|
|
$
|
180
|
|
Year-to-date loan
recoveries
|
|
|
|
|
|
119
|
|
|
|
|
|
|
83
|
|
|
|
|
|
|
12
|
|
Year-to-date net loan
charge-offs
|
|
|
|
|
|
$
|
268
|
|
|
|
|
|
|
$
|
1,494
|
|
|
|
|
|
|
$
|
168
|
|
Annualized YTD net
loan charge-offs to average loans
|
|
|
|
|
|
0.02
|
%
|
|
|
|
|
|
0.09
|
%
|
|
|
|
|
|
0.04
|
%
|
|
|
|
(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 $2.3 million
are included in nonperforming loans at March 31, 2020. 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 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.
|
(3)
|
Nonaccrual loans
include originated restructured loans placed on nonaccrual totaling
$8.7 million, $7.6 million and $9.9 million at March 31, 2020,
December 31, 2019 and March 31, 2019, respectively.
Acquired restructured loans placed on nonaccrual totaled $2.8
million, $2.2 million and $1.2 million at March 31, 2020,
December 31, 2019 and March 31, 2019,
respectively.
|
(4)
|
The allowance for
credit losses includes $3.1 million for unfunded lending
commitments at March 31, 2020. The allowance for unfunded
lending commitments is recorded within accrued interest payable and
other liabilities on the Consolidated Statements of Financial
Condition.
|
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SOURCE Home Bancorp, Inc.