LAFAYETTE, La., July 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 second quarter of 2020. For the quarter, the
Company reported net income of $2.5
million, or $0.29 per diluted
common share ("diluted EPS"), compared to $1.9 million, or $0.21 diluted EPS, for the first quarter of
2020.
"While the long-term impact of COVID-19's effect on our economy
remains tremendously difficult to estimate," said John W. Bordelon, Chairman, President and Chief
Executive Officer of the Company and the Bank, "I've admired how
our customers have managed the short-term challenges they've
faced. They have adjusted their operations in countless ways
to ensure they continue to serve their clients as best they can.
That said, the challenges they face are significant as the virus
spreads and the economy continues to struggle."
"Just as the businesses we bank have stepped up to serve their
clients, our bankers have done a wonderful job stepping up for our
customers," continued Bordelon. "Over the past several months, our
employees have been reminded time and time again of the critical
role we play in our communities. Despite the uncertain road
before us, the spirit within our company has never been
higher. We will rise to meet the challenges ahead. We
will serve one another, our customers and communities like never
before."
COVID-19 Response
While banking operations have not been restrained by state and
local government COVID-19 restrictions, we have adapted to protect
our employees and customers by working remotely as much as
possible, enhancing cleaning procedures, and enacting several other
measures to reduce the risk of transmission of the
virus.
The Company has been active in providing Small Business
Administration ("SBA") Paycheck Protection Program ("PPP") loans.
Through July 24, 2020, we have funded
or are currently in the process of funding approximately 2,970
loans totaling $260.2 million under
the PPP. At June 30, 2020, the total recorded net investment
in PPP loans was $249.6 million.
To give immediate financial support to our customers, the
Company began providing principal and/or interest payment relief
options in March 2020. When we last reported the level of
such deferrals in our first quarter Form 10-Q (as of May 8, 2020), the level of deferrals
totaled $533.0 million, or 27%
of total loans. As of July 24,
2020, the level of deferrals has decreased to $357.2 million, or 18% of total loans.
Second Quarter 2020 Highlights
- Loans grew by $226.8 million on a
linked-quarter basis due primarily to PPP loans;
- The provisions for loan losses and unfunded lending commitments
totaled $7.0 million in the aggregate
during the second quarter, reflecting our assessment of the change
in expected losses due primarily to the economic impact of the
COVID-19 pandemic;
- The allowance for loan losses totaled $33.8 million, or 1.72% of total loans, at
June 30, 2020. The allowance for
credit losses ("ACL"), which includes the allowance for unfunded
lending commitments, totaled $37.5
million, or 1.91% of total loans at June 30, 2020. Excluding PPP loans, the ratio of
allowance for loan losses to total loans and the ratio for
allowance for credit losses was 1.97% and 2.18%, respectively;
- Preliminary Tier 1 leverage capital and total risk-based
capital ratios were 9.11% and 14.83% at June
30, 2020, compared to 10.84% and 14.88% at March 31, 2020;
- The net interest margin was 3.75% for the three months ended
June 30, 2020, down 43 basis points
from the first quarter of 2020. The net interest margin for the
second quarter includes the impact of PPP loans and higher level of
cash and cash equivalents during the quarter; and
- The average yield on total interest-bearing deposits was 0.78%
in the second quarter of 2020, down 29 basis points from the first
quarter of 2020.
Loans
Total loans grew by $226.8
million, or 13%, from March 31, 2020 to June 30,
2020, due to PPP loans. Excluding PPP loans, loans decreased by
$22.8 million, or 1%, during the
quarter. The following table summarizes the changes in the
Company's loan portfolio from March 31, 2020 to
June 30, 2020.
|
|
June
30,
|
|
March
31,
|
|
Increase/(Decrease)
|
(dollars in
thousands)
|
|
2020
|
|
2020(1)
|
|
Amount
|
|
Percent
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
One- to four-family
first mortgage
|
|
$
|
431,999
|
|
|
$
|
447,718
|
|
|
$
|
(15,719)
|
|
|
(4)
|
%
|
Home equity loans and
lines
|
|
72,956
|
|
|
78,011
|
|
|
(5,055)
|
|
|
(6)
|
|
Commercial real
estate
|
|
689,942
|
|
|
691,358
|
|
|
(1,416)
|
|
|
—
|
|
Construction and
land
|
|
203,592
|
|
|
205,542
|
|
|
(1,950)
|
|
|
(1)
|
|
Multi-family
residential
|
|
81,635
|
|
|
74,982
|
|
|
6,653
|
|
|
9
|
|
Total real estate
loans
|
|
1,480,124
|
|
|
1,497,611
|
|
|
(17,487)
|
|
|
(1)
|
|
Other
loans:
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
444,728
|
|
|
198,261
|
|
|
246,467
|
|
|
124
|
|
Consumer
|
|
41,073
|
|
|
43,270
|
|
|
(2,197)
|
|
|
(5)
|
|
Total other
loans
|
|
485,801
|
|
|
241,531
|
|
|
244,270
|
|
|
101
|
|
Total loans
|
|
$
|
1,965,925
|
|
|
$
|
1,739,142
|
|
|
$
|
226,783
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Certain
reclassifications have been made to prior period balances to
conform to the current period presentation.
|
At June 30, 2020, the total recorded investment in PPP
loans was $249.6 million. This amount
is net of $8.5 million in deferred
lender fees, which will be amortized into interest income over the
life of the loans (on a contractual basis, approximately 2 years on
average).
Credit Quality and Allowance for Credit Losses
Nonperforming assets ("NPAs") totaled $28.0 million, or 1.06% of total assets, and
$29.5 million, or 1.31% of total
assets, at June 30, 2020 and March 31, 2020,
respectively. The Company recorded net loan charge-offs of
$1.1 million during the second
quarter of 2020, compared to net loan charge-offs of $268,000 for the first quarter of 2020. The
increase in net loan charge-offs during the second quarter was
primarily due to $658,000 in
charge-offs related to an acquired farm loan relationship and
$385,000 in charge-offs related to an
acquired energy loan relationship. Both relationships were
classified as substandard prior to the COVID-19 crisis.
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 an initial term of up to three months. When we
last reported the level of such deferrals in our first quarter Form
10-Q (as of May 8), the level
of deferrals totaled $533.0
million, or 27% of total loans. As of July 24, 2020 the level of deferrals has
decreased to $357.2 million, or 18%
of total loans.
The provision for loan losses for the second quarter of 2020
totaled $6.5 million, up $214,000 from the first quarter of 2020. The
second quarter provision for loan losses reflects our assessment of
the change in expected losses due primarily to the current and
anticipated economic impact of the COVID-19 pandemic. 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.
The following table provides a summary of the loan portfolio at
June 30, 2020, stratified by certain selected industry
segments, and related reserve builds during the six months ended
June 30, 2020. We have separately identified certain
information regarding PPP loans which, due to the existence of full
repayment guarantees from the SBA as well as the likelihood that
the vast majority of such loans will be forgiven, we believe entail
minimal credit risk to the Company.
|
|
Total
Loans
|
|
PPP
Loans
|
|
Reserve
Builds(1) for the
Quarters
Ended
|
|
Total
ACL
|
|
ACL to
Total Loans
|
|
ACL to
Total Non-PPP
Loans
|
(dollars in
thousands)
|
|
June 30,
2020
|
|
June 30,
2020
|
|
March 31,
2020
|
|
June 30,
2020
|
|
June 30,
2020
|
|
June 30,
2020
|
|
June 30,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail CRE
|
|
$
|
191,761
|
|
|
$
|
—
|
|
|
$
|
744
|
|
|
$
|
4,380
|
|
|
$
|
7,108
|
|
|
3.71
|
%
|
|
3.71
|
%
|
Hotels and short-term
rentals
|
|
90,137
|
|
|
3,979
|
|
|
1,885
|
|
|
1,517
|
|
|
4,313
|
|
|
4.78
|
|
|
5.01
|
|
Restaurants and
bars
|
|
95,352
|
|
|
30,865
|
|
|
545
|
|
|
1,382
|
|
|
2,601
|
|
|
2.73
|
|
|
4.03
|
|
Energy
|
|
29,225
|
|
|
—
|
|
|
1,204
|
|
|
(101)
|
|
|
1,614
|
|
|
5.52
|
|
|
5.52
|
|
Credit cards
|
|
3,831
|
|
|
—
|
|
|
327
|
|
|
(32)
|
|
|
383
|
|
|
10.00
|
|
|
10.00
|
|
Other loans
|
|
1,555,619
|
|
|
214,779
|
|
|
1,284
|
|
|
(1,813)
|
|
|
17,804
|
|
|
1.14
|
|
|
1.33
|
|
Total
|
|
$
|
1,965,925
|
|
|
$
|
249,623
|
|
|
$
|
5,989
|
|
|
$
|
5,333
|
|
|
$
|
33,823
|
|
|
1.72
|
%
|
|
1.97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unfunded lending
commitments(2)
|
|
—
|
|
|
—
|
|
|
729
|
|
|
543
|
|
|
3,637
|
|
|
—
|
|
|
—
|
|
Total
|
|
$
|
1,965,925
|
|
|
$
|
249,623
|
|
|
$
|
6,718
|
|
|
$
|
5,876
|
|
|
$
|
37,460
|
|
|
1.91
|
%
|
|
2.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
"Reserve build"
represents the amount by which the provisions for credit
losses on loans and unfunded lending commitments exceed net loan
charge-offs. For the quarters ended June 30, 2020 and
March 31, 2020, the provision for credit losses totaled $7.0
million, and net loan charge-offs were $1.1 million and $268,000,
respectively.
|
(2)
|
At June 30,
2020, the allowance of $3.6 million related to unfunded lending
commitments of $336.3 million. The ACL on unfunded lending
commitments is recorded within accrued interest payable and other
liabilities on the Consolidated Statements of Financial
Condition.
|
Investment Securities
The following table summarizes the composition of the Company's
investment securities portfolio at June 30, 2020.
(dollars in
thousands)
|
|
Recorded
Investment
|
Available-for-sale
|
|
|
U.S. agency
mortgage-backed
|
|
$
|
115,743
|
|
Collateralized
mortgage obligations
|
|
117,643
|
|
Municipal
bonds
|
|
15,099
|
|
U.S. government
agency
|
|
6,532
|
|
Corporate
bonds
|
|
1,905
|
|
Total
available-for-sale
|
|
256,922
|
|
Held to
Maturity
|
|
|
Municipal
Bonds
|
|
4,333
|
|
Total investment
securities
|
|
$
|
261,255
|
|
Securities available-for-sale ("AFS") made up 98% of total
investment securities and net unrealized gains on AFS securities
totaled $6.7 million at June 30,
2020.
Deposits
Total deposits increased $409.2
million, or 22.0%, from March 31, 2020 to $2.3 billion at June 30, 2020. Customers who
received PPP loans increased their deposit balances by a net of
$210.2 million during the second
quarter of 2020. The following table summarizes the changes
in the Company's deposits from March 31, 2020 to June 30,
2020.
|
June
30,
|
|
March
31,
|
|
Increase/(Decrease)
|
(dollars in
thousands)
|
2020
|
|
2020
|
|
Amount
|
|
Percent
|
Demand
deposits
|
$
|
647,789
|
|
|
$
|
455,512
|
|
|
$
|
192,277
|
|
|
42
|
%
|
Savings
|
237,168
|
|
|
206,597
|
|
|
30,571
|
|
|
15
|
|
Money
market
|
305,668
|
|
|
266,519
|
|
|
39,149
|
|
|
15
|
|
NOW
|
688,336
|
|
|
536,643
|
|
|
151,693
|
|
|
28
|
|
Certificates of
deposit
|
387,743
|
|
|
392,230
|
|
|
(4,487)
|
|
|
(1)
|
|
Total
deposits
|
$
|
2,266,704
|
|
|
$
|
1,857,501
|
|
|
$
|
409,203
|
|
|
22
|
%
|
The average rate on interest-bearing deposits decreased 29 basis
points from 1.07% for the first quarter of 2020 to 0.78% for the
second quarter of 2020. At June 30, 2020, certificates of
deposit maturing within the next 12 months totaled
$291.0 million.
Net Interest Income
The net interest margin ("NIM") decreased 43 basis points from
4.18% for the first quarter of 2020 to 3.75% for the second quarter
of 2020 primarily due to a decrease in the yield on
interest-earning assets, which was down 66 basis points from the
first quarter of 2020. Outstanding PPP loans negatively impacted
the average loan yield by 23 basis points and the NIM by 7 basis
points during the second quarter. During the second quarter of
2020, $882,000 of PPP lender fees
were recognized in loan interest income. The remaining balance of
$8.5 million in deferred lender fees
will be amortized into interest income over the life of the PPP
loans. A $170.2 million, or
265%, increase in cash and cash equivalents at June 30, 2020 compared to March 31, 2020, resulted in higher average other
interest-earning assets due primarily to the growth in
deposits. The increase in cash and cash equivalents
negatively impacted the average yield on total interest-earning
assets and the NIM by 30 and 26 basis points, respectively.
Loan accretion income from acquired loans totaled $746,000 during the second quarter of 2020, down
$64,000 from $810,000 for the first quarter of 2020. At
June 30, 2020, variable rate loans totaled $453.6 million, or 23% 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 have been calculated using a
marginal tax rate of 21%.
|
For the Three
Months Ended
|
|
June 30,
2020
|
|
March 31,
2020
|
(dollars in
thousands)
|
Average
Balance
|
|
Interest
|
Average
Yield/ Rate
|
|
Average
Balance
|
|
Interest
|
Average
Yield/ Rate
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
$
|
1,934,627
|
|
|
$
|
24,371
|
|
5.00
|
%
|
|
$
|
1,735,224
|
|
|
$
|
23,699
|
|
5.43
|
%
|
Investment securities
(TE)
|
256,069
|
|
|
1,182
|
|
1.88
|
|
|
263,040
|
|
|
1,412
|
|
2.19
|
|
Other interest-earning
assets
|
186,127
|
|
|
117
|
|
0.25
|
|
|
28,002
|
|
|
138
|
|
1.99
|
|
Total interest-earning
assets
|
$
|
2,376,823
|
|
|
$
|
25,670
|
|
4.30
|
%
|
|
$
|
2,026,266
|
|
|
$
|
25,249
|
|
4.96
|
%
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Savings, checking, and
money market
|
$
|
1,157,239
|
|
|
$
|
1,347
|
|
0.47
|
%
|
|
$
|
989,028
|
|
|
$
|
1,822
|
|
0.74
|
%
|
Certificates of
deposit
|
391,380
|
|
|
1,665
|
|
1.71
|
|
|
392,670
|
|
|
1,845
|
|
1.89
|
|
Total interest-bearing
deposits
|
1,548,619
|
|
|
3,012
|
|
0.78
|
|
|
1,381,698
|
|
|
3,667
|
|
1.07
|
|
Other
borrowings
|
5,539
|
|
|
53
|
|
3.86
|
|
|
5,539
|
|
|
53
|
|
3.86
|
|
FHLB
advances
|
70,460
|
|
|
188
|
|
1.07
|
|
|
45,729
|
|
|
206
|
|
1.80
|
|
Total interest-bearing
liabilities
|
$
|
1,624,618
|
|
|
$
|
3,253
|
|
0.80
|
%
|
|
$
|
1,432,966
|
|
|
$
|
3,926
|
|
1.10
|
%
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread (TE)
|
|
|
|
3.50
|
%
|
|
|
|
|
3.86
|
%
|
Net interest
margin (TE)
|
|
|
|
3.75
|
%
|
|
|
|
|
4.18
|
%
|
Noninterest Income
Noninterest income for the second quarter of 2020 totaled
$3.1 million, down $255,000, or 8%, from the first quarter of 2020
due primarily to a decrease in service fees and charges (down
$522,000), which was partially offset
by an increase in the gain on the sale of loans (up $345,000). Service fees and charges
decreased primarily due to a decline in income from overdraft fees
on deposit accounts.
Noninterest Expense
Noninterest expense for the second quarter of 2020 totaled
$16.0 million, down $151,000, or 1%, from the first quarter of 2020.
The decrease in noninterest expense was primarily due to decreases
in the provision for credit losses on unfunded lending commitments
(down $187,000) and marketing and
advertising expenses (down $138,000)
for the second quarter of 2020, partially offset by an increase in
regulatory fees (up $246,000) as FDIC
assessment credits were exhausted during the first quarter.
Capital and Liquidity
The Company's tangible common equity ratio was 9.54% and 11.32%
at June 30, 2020 and March 31, 2020, respectively. At
June 30, 2020, the Bank's preliminary Tier 1 leverage capital
ratio was 9.11%, down 173 basis points from March 31, 2020,
and preliminary total risk-based capital ratio was 14.83%, down
five basis points from March 31, 2020. Loans covered under the
PPP are included in the Bank's Tier 1 leverage capital ratio.
The following table summarizes the Company's primary and
secondary sources of liquidity.
|
|
June
30,
|
(dollars in
thousands)
|
|
2020
|
Cash and cash
equivalents
|
|
$
|
234,255
|
|
Unpledged investment
securities, amortized cost
|
|
113,386
|
|
FHLB advance
availability
|
|
729,531
|
|
Unsecured lines of
credit
|
|
55,000
|
|
Federal Reserve
discount window availability
|
|
500
|
|
Total primary and
secondary liquidity
|
|
$
|
1,132,672
|
|
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
August 21, 2020, to shareholders of record as of
August 10, 2020.
The Company repurchased 115,327 shares of its common stock
during the second quarter of 2020 at an average price per share of
$24.69, or an aggregate of
$2.8 million, under the Company's
2019 Repurchase Plan. An additional 82,916 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 $34.50 and $27.39, respectively, at June 30, 2020.
Non-GAAP Reconciliation
This news release contains financial information determined
by methods other than in accordance with generally accepted
accounting principles ("GAAP"). The Company's management uses this
non-GAAP financial information in its analysis of the Company's
performance. In this news release, information is included which
excludes intangible assets and PPP loans. Management believes the
presentation of this non-GAAP financial information provides useful
information that is helpful to a full understanding of the
Company's financial position and operating results. This non-GAAP
financial information should not be viewed as a substitute for
financial information determined in accordance with GAAP, nor is it
necessarily comparable to non-GAAP financial information presented
by other companies. A reconciliation on non-GAAP information
included herein to GAAP is presented below.
|
For the Three
Months Ended
|
(dollars in
thousands, except per share data)
|
June 30,
2020
|
|
March 31,
2020
|
|
June 30,
2019
|
|
|
|
|
|
|
Reported net
income
|
$
|
2,493
|
|
|
$
|
1,905
|
|
|
$
|
6,580
|
|
Add: Core deposit
intangible amortization, net tax
|
270
|
|
|
279
|
|
|
314
|
|
Non-GAAP tangible
income
|
$
|
2,763
|
|
|
$
|
2,184
|
|
|
$
|
6,894
|
|
|
|
|
|
|
|
Total
assets
|
$
|
2,636,896
|
|
|
$
|
2,248,601
|
|
|
$
|
2,220,386
|
|
Less: Intangible
assets
|
63,777
|
|
|
64,119
|
|
|
65,247
|
|
Non-GAAP tangible
assets
|
$
|
2,573,119
|
|
|
$
|
2,184,482
|
|
|
$
|
2,155,139
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
$
|
309,326
|
|
|
$
|
311,497
|
|
|
$
|
313,494
|
|
Less: Intangible
assets
|
63,777
|
|
|
64,119
|
|
|
65,247
|
|
Non-GAAP tangible
shareholders' equity
|
$
|
245,549
|
|
|
$
|
247,378
|
|
|
$
|
248,247
|
|
|
|
|
|
|
|
Total
loans
|
$
|
1,965,925
|
|
|
$
|
1,739,142
|
|
|
$
|
1,692,948
|
|
Less: PPP
loans
|
249,623
|
|
|
—
|
|
|
—
|
|
Total loans excluding
PPP loans
|
$
|
1,716,302
|
|
|
$
|
1,739,142
|
|
|
$
|
1,692,948
|
|
|
|
|
|
|
|
Allowance for loan
losses to total loans
|
1.72
|
%
|
|
1.64
|
%
|
|
1.02
|
%
|
Less: PPP
loans
|
0.25
|
|
|
—
|
|
|
—
|
|
Non-GAAP allowance
for loan losses to total loans
|
1.97
|
%
|
|
1.64
|
%
|
|
1.02
|
%
|
|
|
|
|
|
|
Return on average
equity
|
3.20
|
%
|
|
2.43
|
%
|
|
8.48
|
%
|
Add: Average
intangible assets
|
1.25
|
|
|
1.07
|
|
|
2.77
|
|
Non-GAAP return on
average tangible common equity
|
4.45
|
%
|
|
3.50
|
%
|
|
11.25
|
%
|
|
|
|
|
|
|
Common equity
ratio
|
11.73
|
%
|
|
13.85
|
%
|
|
14.12
|
%
|
Less: Intangible
assets
|
2.19
|
|
|
2.53
|
|
|
2.60
|
|
Non-GAAP tangible
common equity ratio
|
9.54
|
%
|
|
11.32
|
%
|
|
11.52
|
%
|
|
|
|
|
|
|
Book value per
share
|
$
|
34.50
|
|
|
$
|
34.35
|
|
|
$
|
33.20
|
|
Less: Intangible
assets
|
7.11
|
|
|
7.07
|
|
|
6.91
|
|
Non-GAAP tangible
book value per share
|
$
|
27.39
|
|
|
$
|
27.28
|
|
|
$
|
26.29
|
|
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)
|
|
June 30,
2020
|
|
March 31,
2020
|
|
%
Change
|
|
June 30,
2019
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
234,255
|
|
|
$
|
64,102
|
|
|
265
|
%
|
|
$
|
71,325
|
|
Interest-bearing
deposits in banks
|
|
449
|
|
|
449
|
|
|
—
|
|
|
694
|
|
Investment securities
available for sale, at fair value
|
|
256,922
|
|
|
265,646
|
|
|
(3)
|
|
|
261,626
|
|
Investment securities
held to maturity
|
|
4,333
|
|
|
6,607
|
|
|
(34)
|
|
|
8,163
|
|
Mortgage loans held for
sale
|
|
13,359
|
|
|
9,753
|
|
|
37
|
|
|
4,501
|
|
Loans, net of unearned
income
|
|
1,965,925
|
|
|
1,739,142
|
|
|
13
|
|
|
1,692,948
|
|
Allowance for loan
losses
|
|
(33,823)
|
|
|
(28,490)
|
|
|
19
|
|
|
(17,239)
|
|
Total loans, net of
allowance for loan losses
|
|
1,932,102
|
|
|
1,710,652
|
|
|
13
|
|
|
1,675,709
|
|
Office properties and
equipment, net
|
|
45,967
|
|
|
46,541
|
|
|
(1)
|
|
|
47,698
|
|
Cash surrender value of
bank-owned life insurance
|
|
39,953
|
|
|
39,725
|
|
|
1
|
|
|
39,927
|
|
Goodwill and core
deposit intangibles
|
|
63,777
|
|
|
64,119
|
|
|
(1)
|
|
|
65,247
|
|
Accrued interest
receivable and other assets
|
|
45,779
|
|
|
41,007
|
|
|
12
|
|
|
45,496
|
|
Total
Assets
|
|
$
|
2,636,896
|
|
|
$
|
2,248,601
|
|
|
17
|
|
|
$
|
2,220,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
2,266,704
|
|
|
$
|
1,857,501
|
|
|
22
|
%
|
|
$
|
1,829,169
|
|
Other
Borrowings
|
|
5,539
|
|
|
5,539
|
|
|
—
|
|
|
5,539
|
|
Federal Home Loan Bank
advances
|
|
35,041
|
|
|
54,319
|
|
|
(35)
|
|
|
54,615
|
|
Accrued interest
payable and other liabilities
|
|
20,286
|
|
|
19,745
|
|
|
3
|
|
|
17,569
|
|
Total
Liabilities
|
|
2,327,570
|
|
|
1,937,104
|
|
|
20
|
|
|
1,906,892
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
Common stock
|
|
90
|
|
|
91
|
|
|
(1)
|
%
|
|
94
|
|
Additional paid-in
capital
|
|
166,494
|
|
|
167,249
|
|
|
—
|
|
|
169,233
|
|
Common stock acquired
by benefit plans
|
|
(2,970)
|
|
|
(3,063)
|
|
|
3
|
|
|
(3,351)
|
|
Retained
earnings
|
|
140,582
|
|
|
141,798
|
|
|
(1)
|
|
|
146,348
|
|
Accumulated other
comprehensive income
|
|
5,130
|
|
|
5,422
|
|
|
(5)
|
|
|
1,170
|
|
Total
Shareholders' Equity
|
|
309,326
|
|
|
311,497
|
|
|
(1)
|
|
|
313,494
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
2,636,896
|
|
|
$
|
2,248,601
|
|
|
17
|
|
|
$
|
2,220,386
|
|
HOMEBANCORP, INC.
AND SUBSIDIARY
|
CONDENSED
STATEMENTS OF INCOME
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
(dollars in
thousands, except per share data)
|
|
June 30,
2020
|
|
March 31,
2020
|
|
%
Change
|
|
June 30,
2019
|
|
%
Change
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
24,371
|
|
|
$
|
23,699
|
|
|
3
|
%
|
|
$
|
23,812
|
|
|
2
|
%
|
Investment
securities
|
|
1,182
|
|
|
1,412
|
|
|
(16)
|
|
|
1,729
|
|
|
(32)
|
|
Other investments and
deposits
|
|
117
|
|
|
138
|
|
|
(15)
|
|
|
380
|
|
|
(69)
|
|
Total interest
income
|
|
25,670
|
|
|
25,249
|
|
|
2
|
|
|
25,921
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
3,012
|
|
|
3,667
|
|
|
(18)
|
%
|
|
3,735
|
|
|
(19)
|
%
|
Other
borrowings
|
|
53
|
|
|
53
|
|
|
—
|
|
|
53
|
|
|
—
|
|
Federal Home Loan Bank
advances
|
|
188
|
|
|
206
|
|
|
(9)
|
|
|
258
|
|
|
(27)
|
|
Total interest
expense
|
|
3,253
|
|
|
3,926
|
|
|
(17)
|
|
|
4,046
|
|
|
(20)
|
|
Net interest
income
|
|
22,417
|
|
|
21,323
|
|
|
5
|
|
|
21,875
|
|
|
2
|
|
Provision for loan
losses
|
|
6,471
|
|
|
6,257
|
|
|
3
|
|
|
765
|
|
|
746
|
|
Net interest income
after provision for loan losses
|
|
15,946
|
|
|
15,066
|
|
|
6
|
|
|
21,110
|
|
|
(24)
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
Service fees and
charges
|
|
942
|
|
|
1,464
|
|
|
(36)
|
%
|
|
1,413
|
|
|
(33)
|
%
|
Bank card
fees
|
|
1,127
|
|
|
1,137
|
|
|
(1)
|
|
|
1,212
|
|
|
(7)
|
|
Gain on sale of loans,
net
|
|
642
|
|
|
297
|
|
|
116
|
|
|
248
|
|
|
159
|
|
Income from bank-owned
life insurance
|
|
228
|
|
|
259
|
|
|
(12)
|
|
|
202
|
|
|
13
|
|
(Loss) gain on sale of
assets, net
|
|
(13)
|
|
|
2
|
|
|
(750)
|
|
|
(327)
|
|
|
96
|
|
Other income
|
|
177
|
|
|
199
|
|
|
(11)
|
|
|
229
|
|
|
(23)
|
|
Total noninterest
income
|
|
3,103
|
|
|
3,358
|
|
|
(8)
|
|
|
2,977
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
9,362
|
|
|
9,416
|
|
|
(1)
|
%
|
|
9,613
|
|
|
(3)
|
%
|
Occupancy
|
|
1,653
|
|
|
1,736
|
|
|
(5)
|
|
|
2,008
|
|
|
(18)
|
|
Marketing and
advertising
|
|
160
|
|
|
298
|
|
|
(46)
|
|
|
308
|
|
|
(48)
|
|
Data processing and
communication
|
|
1,760
|
|
|
1,819
|
|
|
(3)
|
|
|
1,596
|
|
|
10
|
|
Professional
fees
|
|
255
|
|
|
213
|
|
|
20
|
|
|
218
|
|
|
17
|
|
Forms, printing and
supplies
|
|
160
|
|
|
171
|
|
|
(6)
|
|
|
181
|
|
|
(12)
|
|
Franchise and shares
tax
|
|
389
|
|
|
389
|
|
|
—
|
|
|
398
|
|
|
(2)
|
|
Regulatory
fees
|
|
362
|
|
|
116
|
|
|
212
|
|
|
283
|
|
|
28
|
|
Foreclosed assets,
net
|
|
145
|
|
|
17
|
|
|
753
|
|
|
40
|
|
|
263
|
|
Amortization of
acquisition intangible
|
|
342
|
|
|
353
|
|
|
(3)
|
|
|
398
|
|
|
(14)
|
|
Provision for credit
losses on unfunded lending commitments
|
|
542
|
|
|
729
|
|
|
(26)
|
|
|
—
|
|
|
—
|
|
Other
expenses
|
|
865
|
|
|
889
|
|
|
(3)
|
|
|
909
|
|
|
(5)
|
|
Total noninterest
expense
|
|
15,995
|
|
|
16,146
|
|
|
(1)
|
|
|
15,952
|
|
|
—
|
|
Income before income
tax expense
|
|
3,054
|
|
|
2,278
|
|
|
34
|
|
|
8,135
|
|
|
(62)
|
|
Income tax
expense
|
|
561
|
|
|
373
|
|
|
50
|
|
|
1,555
|
|
|
(64)
|
|
Net
income
|
|
$
|
2,493
|
|
|
$
|
1,905
|
|
|
31
|
|
|
$
|
6,580
|
|
|
(62)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
$
|
0.29
|
|
|
$
|
0.21
|
|
|
38
|
%
|
|
$
|
0.72
|
|
|
(60)
|
%
|
Earnings per share -
diluted
|
|
$
|
0.29
|
|
|
$
|
0.21
|
|
|
38
|
|
|
$
|
0.71
|
|
|
(59)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$
|
0.22
|
|
|
$
|
0.22
|
|
|
—
|
%
|
|
$
|
0.21
|
|
|
5
|
%
|
HOME BANCORP, INC.
AND SUBSIDIARY
|
SUMMARY FINANCIAL
INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
(dollars in
thousands, except per share data)
|
|
June 30,
2020
|
|
March 31,
2020
|
|
%
Change
|
|
June 30,
2019
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
DATA
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
|
$
|
25,670
|
|
|
$
|
25,249
|
|
|
2
|
%
|
|
$
|
25,921
|
|
|
(1)
|
%
|
Total interest
expense
|
|
3,253
|
|
|
3,926
|
|
|
(17)
|
|
|
4,046
|
|
|
(20)
|
|
Net interest
income
|
|
22,417
|
|
|
21,323
|
|
|
5
|
|
|
21,875
|
|
|
2
|
|
Provision for loan
losses
|
|
6,471
|
|
|
6,257
|
|
|
3
|
|
|
765
|
|
|
746
|
|
Total noninterest
income
|
|
3,103
|
|
|
3,358
|
|
|
(8)
|
|
|
2,977
|
|
|
4
|
|
Total noninterest
expense
|
|
15,995
|
|
|
16,146
|
|
|
(1)
|
|
|
15,952
|
|
|
—
|
|
Income tax
expense
|
|
561
|
|
|
373
|
|
|
50
|
|
|
1,555
|
|
|
(64)
|
|
Net income
|
|
$
|
2,493
|
|
|
$
|
1,905
|
|
|
31
|
|
|
$
|
6,580
|
|
|
(62)
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
2,571,004
|
|
|
$
|
2,219,114
|
|
|
16
|
%
|
|
$
|
2,190,604
|
|
|
17
|
%
|
Total
interest-earning assets
|
|
2,376,823
|
|
|
2,026,266
|
|
|
17
|
|
|
1,993,067
|
|
|
19
|
|
Total
loans
|
|
1,934,627
|
|
|
1,735,224
|
|
|
11
|
|
|
1,665,841
|
|
|
16
|
|
Total
interest-bearing deposits
|
|
1,548,619
|
|
|
1,381,698
|
|
|
12
|
|
|
1,368,694
|
|
|
13
|
|
Total
interest-bearing liabilities
|
|
1,624,618
|
|
|
1,432,966
|
|
|
13
|
|
|
1,431,415
|
|
|
13
|
|
Total
deposits
|
|
2,155,963
|
|
|
1,833,848
|
|
|
18
|
|
|
1,810,377
|
|
|
19
|
|
Total shareholders'
equity
|
|
313,650
|
|
|
315,607
|
|
|
(1)
|
|
|
311,308
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED RATIOS
(1)
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
0.39
|
%
|
|
0.35
|
%
|
|
11
|
%
|
|
1.20
|
%
|
|
(68)
|
%
|
Return on average
equity
|
|
3.20
|
|
|
2.43
|
|
|
32
|
|
|
8.48
|
|
|
(62)
|
|
Common equity
ratio
|
|
11.73
|
|
|
13.85
|
|
|
(15)
|
|
|
14.12
|
|
|
(17)
|
|
Efficiency ratio
(2)
|
|
62.67
|
|
|
65.42
|
|
|
(4)
|
|
|
64.19
|
|
|
(2)
|
|
Average equity to
average assets
|
|
12.20
|
|
|
14.22
|
|
|
(14)
|
|
|
14.21
|
|
|
(14)
|
|
Tier 1 leverage
capital ratio (3)
|
|
9.11
|
|
|
10.84
|
|
|
(16)
|
|
|
11.15
|
|
|
(18)
|
|
Total risk-based
capital ratio (3)
|
|
14.83
|
|
|
14.88
|
|
|
—
|
|
|
15.33
|
|
|
(3)
|
|
Net interest margin
(4)
|
|
3.75
|
|
|
4.18
|
|
|
(10)
|
|
|
4.36
|
|
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED NON-GAAP
RATIOS (1)
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity ratio (5)
|
|
9.54
|
%
|
|
11.32
|
%
|
|
(16)
|
%
|
|
11.52
|
%
|
|
(17)
|
%
|
Return on average
tangible common equity (6)
|
|
4.45
|
|
|
3.50
|
|
|
27
|
|
|
11.25
|
|
|
(60)
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
$
|
0.29
|
|
|
$
|
0.21
|
|
|
38
|
%
|
|
$
|
0.72
|
|
|
(60)
|
%
|
Earnings per share -
diluted
|
|
0.29
|
|
|
0.21
|
|
|
38
|
|
|
0.71
|
|
|
(59)
|
|
Book value at period
end
|
|
34.50
|
|
|
34.35
|
|
|
—
|
|
|
33.20
|
|
|
4
|
|
Tangible book value
at period end
|
|
27.39
|
|
|
27.28
|
|
|
—
|
|
|
26.29
|
|
|
4
|
|
Shares outstanding at
period end
|
|
8,966,101
|
|
|
9,067,920
|
|
|
(1)
|
|
|
9,441,800
|
|
|
(5)
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
8,701,730
|
|
|
8,883,261
|
|
|
(2)
|
%
|
|
9,155,074
|
|
|
(5)
|
%
|
Diluted
|
|
8,730,437
|
|
|
8,927,448
|
|
|
(2)
|
|
|
9,207,880
|
|
|
(5)
|
|
|
(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)
|
|
|
June 30,
2020
|
|
March 31,
2020
|
|
June 30,
2019
|
(dollars in
thousands)
|
|
Originated
|
|
Acquired
|
|
Total
|
|
Originated
|
|
Acquired
|
|
Total
|
|
Originated
|
|
Acquired
|
|
Total
|
CREDIT QUALITY
(1) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans(3)
|
|
$
|
14,126
|
|
|
$
|
10,966
|
|
|
$
|
25,092
|
|
|
$
|
15,235
|
|
|
$
|
11,686
|
|
|
$
|
26,921
|
|
|
$
|
15,027
|
|
|
$
|
10,945
|
|
|
$
|
25,972
|
|
Accruing loans past due
90 days and over
|
|
—
|
|
|
906
|
|
|
906
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total nonperforming
loans
|
|
14,126
|
|
|
11,872
|
|
|
25,998
|
|
|
15,235
|
|
|
11,686
|
|
|
26,921
|
|
|
15,027
|
|
|
10,945
|
|
|
25,972
|
|
Foreclosed assets and
ORE
|
|
1,060
|
|
|
914
|
|
|
1,974
|
|
|
978
|
|
|
1,628
|
|
|
2,606
|
|
|
87
|
|
|
1,893
|
|
|
1,980
|
|
Total nonperforming
assets
|
|
15,186
|
|
|
12,786
|
|
|
27,972
|
|
|
16,213
|
|
|
13,314
|
|
|
29,527
|
|
|
15,114
|
|
|
12,838
|
|
|
27,952
|
|
Performing troubled
debt restructurings
|
|
917
|
|
|
457
|
|
|
1,374
|
|
|
989
|
|
|
695
|
|
|
1,684
|
|
|
1,080
|
|
|
217
|
|
|
1,297
|
|
Total nonperforming
assets and troubled debt restructurings
|
|
$
|
16,103
|
|
|
$
|
13,243
|
|
|
$
|
29,346
|
|
|
$
|
17,202
|
|
|
$
|
14,009
|
|
|
$
|
31,211
|
|
|
$
|
16,194
|
|
|
$
|
13,055
|
|
|
$
|
29,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
total assets
|
|
|
|
|
|
1.06
|
%
|
|
|
|
|
|
1.31
|
%
|
|
|
|
|
|
1.26
|
%
|
Nonperforming loans to
total assets
|
|
|
|
|
|
0.99
|
|
|
|
|
|
|
1.20
|
|
|
|
|
|
|
1.17
|
|
Nonperforming loans to
total loans
|
|
|
|
|
|
1.32
|
|
|
|
|
|
|
1.55
|
|
|
|
|
|
|
1.53
|
|
Allowance for loan
losses to nonperforming assets
|
|
|
|
|
|
120.92
|
|
|
|
|
|
|
96.49
|
|
|
|
|
|
|
61.67
|
|
Allowance for loan
losses to nonperforming loans
|
|
|
|
|
|
130.10
|
|
|
|
|
|
|
105.83
|
|
|
|
|
|
|
66.38
|
|
Allowance for loan
losses to total loans
|
|
|
|
|
|
1.72
|
|
|
|
|
|
|
1.64
|
|
|
|
|
|
|
1.02
|
|
Allowance for credit
losses to total loans(4)
|
|
|
|
|
|
1.91
|
|
|
|
|
|
|
1.82
|
|
|
|
|
|
|
1.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-date loan
charge-offs
|
|
|
|
|
|
$
|
1,627
|
|
|
|
|
|
|
$
|
388
|
|
|
|
|
|
|
$
|
288
|
|
Year-to-date loan
recoveries
|
|
|
|
|
|
221
|
|
|
|
|
|
|
120
|
|
|
|
|
|
|
24
|
|
Year-to-date net loan
charge-offs
|
|
|
|
|
|
$
|
1,406
|
|
|
|
|
|
|
$
|
268
|
|
|
|
|
|
|
$
|
264
|
|
Annualized YTD net
loan charge-offs to average
loans
|
|
|
|
|
|
0.15
|
%
|
|
|
|
|
|
0.06
|
%
|
|
|
|
|
|
0.03
|
%
|
|
(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 $2.1 million
and $2.3 million are included in nonperforming loans at
June 30, 2020 and March 31, 2020, respectively. Prior to
January 1, 2020, these loans were classified as PCI and
excluded from nonperforming loans because they continued to earn
interest income from the accretable yield at the pool level. With
the adoption of CECL, the pools were discontinued and performance
is based on contractual terms for individual loans.
|
|
|
(2)
|
It is our policy to
cease accruing interest on loans 90 days or more past due.
Nonperforming assets consist of nonperforming loans, foreclosed
assets and 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
$8.1 million, $8.7 million and $9.9 million at June 30, 2020,
March 31, 2020 and June 30, 2019, respectively. Acquired
restructured loans placed on nonaccrual totaled $2.2 million, $2.8
million and $1.9 million at June 30, 2020, March 31, 2020
and June 30, 2019, respectively.
|
|
|
(4)
|
The allowance for
credit losses includes $3.6 million and $3.1 million for unfunded
lending commitments at June 30, 2020 and March 31, 2020,
respectively. 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.