HOME BANCORP ANNOUNCES 2021 FOURTH QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND

Rhea-AI Summary

Home Bancorp Inc. (HBCP) reported a net income of $10.2 million ($1.23 per diluted share) for Q4 2021, down from $15.1 million ($1.79) in Q3 2021. Key highlights include a 32% decline in net income, driven by lower PPP loan interest income and absence of life insurance benefits. Total loans stood at $1.8 billion, a decrease of 2% from Q3 2021. The company announced a quarterly cash dividend of $0.23 per share, payable on February 18, 2022. The acquisition of Friendswood Capital is on track to close in Q1 2022.

Positive

• Quarterly cash dividend of $0.23 per share announced, indicating shareholder returns.
• Loan growth anticipated in 2022 due to economic recovery and market expansion into Houston.

Negative

• Net income decreased by 32% from the prior quarter, primary due to lower interest income from PPP loans.
• Noninterest income fell by 34%, impacted by the absence of life insurance benefits recognized in the previous quarter.

LAFAYETTE, La., Jan. 25, 2022 /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 fourth quarter of 2021. For the quarter, the Company reported net income of $10.2 million, or $1.23 per diluted common share ("diluted EPS"), down $4.8 million from $15.1 million, or $1.79 diluted EPS, for the third quarter of 2021.

"We finished the year with another quarter of loan growth, excluding PPP loans," said John W. Bordelon, Chairman, President and Chief Executive Officer of the Company and the Bank. "We expect 2022 to be a year of strong loan growth with a stronger economy and our pending expansion into the Houston market. The previously announced acquisition of Friendswood Capital, Inc. ("Friendswood") and its subsidiary, Texan Bank, N.A., is proceeding as planned. The transaction is expected to close in the first quarter of 2022 upon receiving regulatory approvals and Friendswood shareholder approval."

"Our previously announced purchase and assumption agreement to sell our Vicksburg banking center to Delta Bank closed on Friday, January 21, 2022. Our teams worked diligently to ensure a smooth transition for the customers."

COVID-19 Response

After an increase in COVID-19 cases during the third quarter, Louisiana reinstituted it indoor mask mandate in August 2021. The mask mandate was lifted in October 2021 but was reinstituted in the city of New Orleans in January 2022.

Under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"), the Company funded approximately 4,875 PPP loans totaling $388.7 million during 2020 and 2021, in aggregate. At December 31, 2021, the total recorded net investment in PPP loans was $43.6 million, of which approximately 177 loans with an aggregate outstanding balance of $5.0 million were for amounts of $150,000 or less.

To give immediate financial support to our customers, the Company began providing principal and/or interest payment relief options in March 2020. At December 31, 2021, $3.9 million, or less than 1% of total loans were under COVID-19 related deferral agreements. The level of COVID-19 related deferrals formerly totaled $558.8 million, or 28% of total loans, at June 30, 2020. Of the loans that have exited deferral agreements, $372.6 million, or 99%, were current and performing as of December 31, 2021.

Fourth Quarter 2021 Highlights

• Net income totaled $10.2 million, down $4.8 million, or 32%, from the prior quarter primarily due to a $2.5 million decrease in interest income on PPP loans and the absence of life insurance benefit of $1.7 million recognized in the third quarter 2021.
• Return on average assets, return on average equity and return on average tangible common equity were 1.38%, 11.65%, and 14.48%, respectively.
• The Company recorded a $2.6 million reversal to the allowance for loan losses, compared to a $2.4 million allowance reversal in the prior quarter, primarily due to continued improvements in our assessment of the economic impact of the COVID-19 pandemic.
• Loan income from the recognition of deferred PPP lender fees totaled $2.0 million, down $2.3 million from the prior quarter.
• Noninterest income was down $1.8 million, or 34%, from the prior quarter primarily due to absence of income from bank-owned life insurance in the prior quarter. The Company recognized a life insurance benefit of $1.7 million following the death of an employee during the third quarter of 2021.
• Loans totaled $1.8 billion at December 31, 2021, down $35.1 million, or 2%, from September 30, 2021. Excluding PPP loans, loan growth during the same comparative period was up $16.8 million, or 4% annualized.
• PPP loans totaled $43.6 million at December 31, 2021, down $51.9 million, or 54%, from September 30, 2021.
• The allowance for loan losses totaled $21.1 million, or 1.15% of total loans, at December 31, 2021. Excluding PPP loans, the ratio of allowance for loan losses to total loans was 1.17% at such date.
• Nonperforming assets totaled $14.5 million, or 0.49% of total assets, down $1.1 million, or 7%, from September 30, 2021 primarily due to pay-downs on nonaccrual loans.
• Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.77% and 15.95% at December 31, 2021, compared to 10.05% and 15.60% at September 30, 2021.

Loans

Loans totaled $1.8 billion at December 31, 2021, down $35.1 million, or 2%, from September 30, 2021. The following table summarizes the changes in the Company's loan portfolio from September 30, 2021 to December 31, 2021. 

		December 31,		September 30,		Increase (Decrease)
(dollars in thousands)		2021		2021		Amount		Percent
Real estate loans:
One- to four-family first mortgage		$                350,843		$                360,150		$                   (9,307)		(3)%
Home equity loans and lines		60,312		59,667		645		1
Commercial real estate		801,624		802,401		(777)		—
Construction and land		259,652		241,286		18,366		8
Multi-family residential		90,518		92,062		(1,544)		(2)
Total real estate loans		1,562,949		1,555,566		7,383		—
Other loans:
Commercial and industrial		244,123		284,831		(40,708)		(14)
Consumer		33,021		34,779		(1,758)		(5)
Total other loans		277,144		319,610		(42,466)		(13)
Total loans		$            1,840,093		$             1,875,176		$                (35,083)		(2)%

During the fourth quarter of 2021, construction and land loan growth was partially offset by pay-downs of commercial and industrial loans and residential mortgages. The change in commercial and industrial loans included a decrease in PPP loans of $51.9 million, or 54%, from September 30, 2021. Residential mortgages declined primarily due to refinances as borrowers sought to acquire lower interest rates.

Construction and land ("C&D") loan growth was spread across our New Orleans, Acadiana and Baton Rouge markets and was primarily driven by non-residential construction projects. At December 31, 2021, C&D loans within our Acadiana, New Orleans, and Northshore markets accounted for approximately 73% of our total construction and land portfolio.

Credit Quality and Allowance for Credit Losses

At December 31, 2021 and September 30, 2021, loans under interest and/or principal payment deferral agreements due to the COVID-19 crisis amounted to less than 1% of total loans.

Nonperforming assets ("NPAs"), totaled $14.5 million, or 0.49% of total assets at December 31, 2021, down $1.1 million, or 7%, from $15.5 million, or 0.56% of total assets, at September 30, 2021.  The Company recorded net loan charge-offs of $412,000 during the fourth quarter of 2021, compared to net loan charge-offs of $153,000 for the third quarter of 2021.

The Company reversed $2.6 million of the allowance for loan losses in the fourth quarter of 2021 primarily due to continued improvements in our assessment of the economic impact of the COVID-19 pandemic. For the year ended December 31, 2021, we reversed a total of $10.2 million of the allowance for loan losses. At December 31, 2021, the allowance for loan losses totaled $21.1 million or 1.15% of total loans, compared to $24.1 million or 1.29% of total loans at September 30, 2021. Excluding PPP loans, the ratios of the allowance for loan losses to total loans were 1.17% and 1.36% at December 31, 2021 and September 30, 2021, respectively. Changes in expected losses consider various factors including the changing economic activity, potential mitigating effects of governmental stimulus, the duration of the health crisis, customer specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.

Deposits

Total deposits were $2.5 billion at December 31, 2021, up $170.1 million, or 7%, from September 30, 2021. The following table summarizes the changes in the Company's deposits from September 30, 2021 to December 31, 2021.

		December 31,		September 30,		Increase/(Decrease)
(dollars in thousands)		2021		2021		Amount		Percent
Demand deposits		$                  766,385		$                  728,352		$                    38,033		5%
Savings		285,728		280,651		5,077		2
Money market		371,478		355,923		15,555		4
NOW		792,919		669,414		123,505		18
Certificates of deposit		319,339		331,377		(12,038)		(4)
Total deposits		$               2,535,849		$               2,365,717		$                  170,132		7%

The average rate on interest-bearing deposits decreased 5 basis points from 0.27% for the third quarter of 2021 to 0.22% for the fourth quarter of 2021. At December 31, 2021, certificates of deposit maturing within the next 12 months totaled $251.6 million.

Net Interest Income

The net interest margin ("NIM") decreased 63 basis points from 4.16% for the third quarter of 2021 to 3.53% for the fourth quarter of 2021 primarily due to a decrease in the average yield on loans. Loan income was impacted for the fourth quarter of 2021 due to fewer PPP loan payoffs, which reduced deferred PPP lender fees recognized. 

The average loan yield was 5.12% for the fourth quarter of 2021, down 48 basis points from the third quarter of 2021. Loan income from the recognition of deferred PPP lender fees totaled $2.0 million during the fourth quarter of 2021, down $2.3 million, or 54%, compared to the third quarter of 2021. As a result, PPP loans positively impacted the average loan yield by 29 basis points and the NIM by 24 basis points during the fourth quarter of 2021. During the third quarter of 2021, the average loan yield increased by 60 basis points and the NIM by 52 basis points due to the impact of PPP loans.  Average PPP loans were $67.2 million for the fourth quarter of 2021, down $77.4 million, or 54%, from the third quarter of 2021. Unrecognized PPP lender fees totaled $1.3 million at December 31, 2021.

Loan accretion income from acquired loans totaled $485,000 for the fourth quarter of 2021, down $71,000, or 13%, compared to the third quarter of 2021.

The average rate paid on total interest-bearing deposits was 0.22% for the fourth quarter of 2021, down 5 basis points from the third quarter of 2021.

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
		December 31, 2021						September 30, 2021
(dollars in thousands)		Average Balance		Interest		Average Yield/ Rate		Average Balance		Interest		Average Yield/ Rate
Interest-earning assets:
Loans receivable		$     1,856,814		$          24,215		5.12 %		$     1,896,808		$          27,045		5.60 %
Investment securities (TE)		314,686		1,309		1.67		278,450		1,189		1.74
Other interest-earning assets		577,945		264		0.48		388,723		189		0.19
Total interest-earning assets		$     2,749,445		$          25,788		3.69 %		$     2,563,981		$          28,423		4.36 %
Interest-bearing liabilities:
Deposits:
Savings, checking, and money market		$     1,401,774		$               554		0.16 %		$     1,312,131		$               605		0.18 %
Certificates of deposit		327,567		420		0.51		332,916		515		0.61
Total interest-bearing deposits		1,729,341		974		0.22		1,645,047		1,120		0.27
Other borrowings		5,539		53		3.80		5,539		53		3.80
FHLB advances		26,172		111		1.70		27,011		116		1.72
Total interest-bearing liabilities		$     1,761,052		$            1,138		0.26 %		$     1,677,597		$            1,289		0.31 %
Net interest spread (TE)						3.43 %						4.05 %
Net interest margin (TE)						3.53 %						4.16 %

Noninterest Income

Noninterest income for the fourth quarter of 2021 was $3.5 million, down $1.8 million, or 34%, from the third quarter of 2021 due primarily to income from bank-owned life insurance. The Company recognized a life insurance benefit of $1.7 million following the death of an employee during the third quarter of 2021.

Noninterest Expense

Noninterest expense for the fourth quarter of 2021 totaled $18.0 million, up $1.6 million, or 10%, compared to the third quarter of 2021.

Marketing and advertising fees were up $634,000 from the third quarter of 2021 primarily due to elevated donation expenses.

Professional fees were up $259,000 from the third quarter of 2021 primarily due to merger related expenses associated with acquisition of Friendswood Capital Corporation announced in December 2021.

Other expenses were up $129,000 from the third quarter of 2021 primarily due to certain loan servicing fees and expenses. 

Dividend and Share Repurchases

The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.23 per share payable on February 18, 2022, to shareholders of record as of February 7, 2022.

The Company repurchased 2,515 shares of its common stock during the fourth quarter of 2021 at an average price per share of $40.64 under the Company's 2020 Repurchase Plan. An additional 484,068 shares remain eligible for purchase under the 2020 and 2021 Repurchase Plan. The book value per share and tangible book value per share of the Company's common stock was $41.27 and $34.00, respectively, at December 31, 2021.

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 of non-GAAP information included herein to GAAP is presented below.

		For the Three Months Ended
(dollars in thousands, except per share data)		December 31, 2021		September 30, 2021		December 31, 2020
Reported net income		$            10,238		$            15,059		$            10,580
Add: Core deposit intangible amortization, net tax		221		230		258
Non-GAAP tangible income		$            10,459		$            15,289		$            10,838
Reported loan income		$            24,215		$            27,045		$            26,267
Less: PPP loan income		2,201		4,742		2,794
Loan income excluding PPP loan income		$            22,014		$            22,303		$            23,473
Loan yield		5.12 %		5.60 %		5.20 %
(Positive) negative impact of PPP loans		(0.29)		(0.60)		0.11
Loan yield excluding PPP loans		4.83 %		5.00 %		5.31 %
Net interest margin		3.53 %		4.16 %		4.11 %
(Positive) negative impact of PPP loans		(0.24)		(0.52)		(0.05)
Net interest margin excluding PPP loans		3.29 %		3.64 %		4.06 %
Total assets		$       2,938,244		$       2,763,466		$       2,591,850
Less: Intangible assets		61,949		62,229		63,112
Non-GAAP tangible assets		$       2,876,295		$       2,701,237		$       2,528,738
Total shareholders' equity		$          351,903		$          344,149		$          321,842
Less: Intangible assets		61,949		62,229		63,112
Non-GAAP tangible shareholders' equity		$          289,954		$          281,920		$          258,730
Total loans		$       1,840,093		$       1,875,176		$       1,979,954
Less: PPP loans		43,637		95,560		221,220
Total loans excluding PPP loans		$       1,796,456		$       1,779,616		$       1,758,734
Allowance for loan losses to total loans		1.15 %		1.29 %		1.66 %
Less: PPP loans		0.02		0.07		0.21
Non-GAAP allowance for loan losses to total loans		1.17 %		1.36 %		1.87 %
Return on average equity		11.65 %		17.46 %		13.22 %
Add: Average intangible assets		2.83		4.22		3.68
Non-GAAP return on average tangible common equity		14.48 %		21.68 %		16.90 %
Common equity ratio		11.98 %		12.45 %		12.42 %
Less: Intangible assets		1.90		2.01		2.19
Non-GAAP tangible common equity ratio		10.08 %		10.44 %		10.23 %
Book value per share		$              41.27		$              40.38		$              36.82
Less: Intangible assets		7.27		7.30		7.22
Non-GAAP tangible book value per share		$              34.00		$              33.08		$              29.60

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, 2020, as supplemented by its Current Report on Form 8-K dated April 27, 2021, describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for credit losses, the impact of the COVID-19 pandemic, risks of our growth strategy, geographic concentration of our business, dependence on our management team, risks of market rates of interest and of regulation on our business and risks of competition. Forward-looking statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events.

HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(dollars in thousands)		December 31, 2021		September 30, 2021		% Change		December 31, 2020
Assets
Cash and cash equivalents		$                601,443		$                413,694		45 %		$                187,952
Interest-bearing deposits in banks		349		349		—		349
Investment securities available for sale, at fair value		327,632		304,125		8		254,752
Investment securities held to maturity		2,102		2,110		—		2,934
Mortgage loans held for sale		1,104		3,476		(68)		9,559
Loans, net of unearned income		1,840,093		1,875,176		(2)		1,979,954
Allowance for loan losses		(21,089)		(24,149)		13		(32,963)
Total loans, net of allowance for loan losses		1,819,004		1,851,027		(2)		1,946,991
Office properties and equipment, net		43,542		44,331		(2)		45,497
Cash surrender value of bank-owned life insurance		40,361		40,142		1		40,334
Goodwill and core deposit intangibles		61,949		62,229		—		63,112
Accrued interest receivable and other assets		40,758		41,983		(3)		40,370
Total Assets		$             2,938,244		$             2,763,466		6		$             2,591,850
Liabilities
Deposits		$             2,535,849		$             2,365,717		7  %		$             2,213,821
Other Borrowings		5,539		5,539		—		5,539
Federal Home Loan Bank advances		26,046		26,430		(1)		28,824
Accrued interest payable and other liabilities		18,907		21,631		(13)		21,824
Total Liabilities		2,586,341		2,419,317		7		2,270,008
Shareholders' Equity
Common stock		85		85		—  %		87
Additional paid-in capital		164,982		164,316		—		164,988
Common stock acquired by benefit plans		(2,423)		(2,513)		4		(2,789)
Retained earnings		188,515		180,327		5		154,282
Accumulated other comprehensive income		744		1,934		(62)		5,274
Total Shareholders' Equity		351,903		344,149		2		321,842
Total Liabilities and Shareholders' Equity		$             2,938,244		$             2,763,466		6		$             2,591,850

 

HOMEBANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
		For the Three Months Ended
(dollars in thousands, except per share data)		December 31, 2021		September 30, 2021		% Change		December 31, 2020		% Change
Interest Income
Loans, including fees		$                  24,215		$                  27,045		(10) %		$                  26,267		(8) %
Investment securities		1,309		1,189		10		1,002		31
Other investments and deposits		264		189		40		99		167
Total interest income		25,788		28,423		(9)		27,368		(6)
Interest Expense
Deposits		974		1,120		(13) %		1,987		(51) %
Other borrowings		53		53		—		53		—
Federal Home Loan Bank advances		111		116		(4)		129		(14)
Total interest expense		1,138		1,289		(12)		2,169		(48)
Net interest income		24,650		27,134		(9)		25,199		(2)
(Reversal) provision for loan losses		(2,648)		(2,385)		(11)		—		—
Net interest income after provision for loan losses		27,298		29,519		(8)		25,199		8
Noninterest Income
Service fees and charges		1,224		1,260		(3) %		1,117		10 %
Bank card fees		1,519		1,519		—		1,273		19
Gain on sale of loans, net		376		415		(9)		1,082		(65)
Income from bank-owned life insurance		219		1,938		(89)		276		(21)
Loss on sale of assets, net		(44)		(3)		(1367)		—		—
Other income		240		254		(6)		302		(21)
Total noninterest income		3,534		5,383		(34)		4,050		(13)
Noninterest Expense
Compensation and benefits		9,991		9,809		2 %		9,417		6 %
Occupancy		1,824		1,717		6		1,719		6
Marketing and advertising		1,033		399		159		386		168
Data processing and communication		2,237		2,118		6		1,913		17
Professional fees		493		234		111		187		164
Forms, printing and supplies		164		158		4		154		6
Franchise and shares tax		396		360		10		331		20
Regulatory fees		331		301		10		373		(11)
Foreclosed assets, net		155		74		109		181		(14)
Amortization of acquisition intangible		279		291		(4)		327		(15)
Provision for credit losses on unfunded lending commitments		15		—				—
Other expenses		1,099		970		13		1,008		9
Total noninterest expense		18,017		16,431		10		15,996		13
Income before income tax expense		12,815		18,471		(31)		13,253		(3)
Income tax expense		2,577		3,412		(24)		2,673		(4)
Net income		$                  10,238		$                  15,059		(32)		$                  10,580		(3)
Earnings per share - basic		$                       1.24		$                       1.80		(31) %		$                       1.25		(1) %
Earnings per share - diluted		$                       1.23		$                       1.79		(31)		$                       1.24		(1)
Cash dividends declared per common share		$                       0.23		$                       0.23		— %		$                       0.22		5 %

 

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
(Unaudited)
		For the Three Months Ended
(dollars in thousands, except per share data)		December 31, 2021		September 30, 2021		% Change		December 31, 2020		% Change
EARNINGS DATA
Total interest income		$              25,788		$              28,423		(9) %		$              27,368		(6) %
Total interest expense		1,138		1,289		(12)		2,169		(48)
Net interest income		24,650		27,134		(9)		25,199		(2)
(Reversal) provision for loan losses		(2,648)		(2,385)		(11)		—		—
Total noninterest income		3,534		5,383		(34)		4,050		(13)
Total noninterest expense		18,017		16,431		10		15,996		13
Income tax expense		2,577		3,412		(24)		2,673		(4)
Net income		$              10,238		$              15,059		(32)		$              10,580		(3)
AVERAGE BALANCE SHEET DATA
Total assets		$         2,941,274		$         2,756,353		7 %		$         2,599,375		13 %
Total interest-earning assets		2,749,445		2,563,981		7		2,414,349		14
Total loans		1,856,814		1,896,808		(2)		1,984,969		(6)
PPP loans		67,198		144,626		(54)		243,721		(72)
Total interest-bearing deposits		1,729,341		1,645,047		5		1,593,027		9
Total interest-bearing liabilities		1,761,052		1,677,597		5		1,628,308		8
Total deposits		2,537,670		2,358,086		8		2,226,526		14
Total shareholders' equity		348,635		342,189		2		318,404		9
PER SHARE DATA
Earnings per share - basic		$                   1.24		$                   1.80		(31) %		$                   1.25		(1) %
Earnings per share - diluted		1.23		1.79		(31)		1.24		(1)
Book value at period end		41.27		40.38		2		36.82		12
Tangible book value at period end		34.00		33.08		3		29.60		15
Shares outstanding at period end		8,526,907		8,523,473		—		8,740,104		(2)
Weighted average shares outstanding
Basic		8,278,472		8,354,176		(1) %		8,484,785		(2) %
Diluted		8,331,749		8,405,610		(1)		8,508,740		(2)
SELECTED RATIOS (1)
Return on average assets		1.38 %		2.17 %		(36) %		1.62 %		(15) %
Return on average equity		11.65		17.46		(33)		13.22		(12)
Common equity ratio		11.98		12.45		(4)		12.42		(4)
Efficiency ratio (2)		63.93		50.53		27		54.69		17
Average equity to average assets		11.85		12.41		(5)		12.25		(3)
Tier 1 leverage capital ratio (3)		9.77		10.05		(3)		9.68		1
Total risk-based capital ratio (3)		15.95		15.60		2		15.18		5
Net interest margin (4)		3.53		4.16		(15)		4.11		(14)
SELECTED NON-GAAP RATIOS (1)
Tangible common equity ratio (5)		10.08 %		10.44 %		(3) %		10.23 %		(1) %
Return on average tangible common equity (6)		14.48		21.68		(33)		16.90		(14)
(1)     With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods.   (2)     The efficiency ratio represents noninterest expense as a percentage of total revenues. Total revenues is the sum of net interest income and noninterest income.   (3)     Capital  ratios are preliminary end-of-period ratios for the Bank only and are subject to change.   (4)     Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%.   (5)     Tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. See "Non-GAAP Reconciliation" for additional information.   (6)     Return on average tangible common equity is net income plus amortization of core deposit intangible, net of taxes, divided by average common shareholders' equity less average intangible assets. See "Non-GAAP Reconciliation" for additional information.

 

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION
(Unaudited)
		December 31, 2021						September 30, 2021						December 31, 2020
(dollars in thousands)		Acquired		Originated		Total		Acquired		Originated		Total		Acquired		Originated		Total
CREDIT QUALITY (1)
Nonaccrual loans (2)		$          6,036		$          7,233		$    13,269		$          5,896		$          8,592		$    14,488		$          8,748		$          9,929		$    18,677
Accruing loans past due 90 days and over		—		6		6		—		13		13		—		2		2
Total nonperforming loans		6,036		7,239		13,275		5,896		8,605		14,501		8,748		9,931		18,679
Foreclosed assets and ORE		80		1,109		1,189		259		772		1,031		880		422		1,302
Total nonperforming assets		6,116		8,348		14,464		6,155		9,377		15,532		9,628		10,353		19,981
Performing troubled debt restructurings		1,096		3,867		4,963		1,085		3,961		5,046		573		1,512		2,085
Total nonperforming assets and troubled debt      restructurings		$          7,212		$        12,215		$    19,427		$          7,240		$        13,338		$    20,578		$        10,201		$        11,865		$    22,066
Nonperforming assets to total assets						0.49 %						0.56 %						0.77 %
Nonperforming loans to total assets						0.45						0.52						0.72
Nonperforming loans to total loans						0.72						0.77						0.94
(1)     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 other real estate (ORE). Foreclosed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure. ORE consists of closed or unused bank buildings.   (2)     Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $3.7 million, $4.1 million and $6.5 million at December 31, 2021, September 30, 2021 and December 31, 2020, respectively. Acquired restructured loans placed on nonaccrual totaled $3.5 million, $3.5 million and $3.5 million at December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

 

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION - CONTINUED
(Unaudited)
		12/31/2021						9/30/2021						12/31/2020
		Collectively Evaluated		Individually Evaluated		Total		Collectively Evaluated		Individually Evaluated		Total		Collectively Evaluated		Individually Evaluated		Total
ALLOWANCE FOR CREDIT LOSSES
One- to four-family first mortgage		$          1,944		$                 —		$      1,944		$          2,145		$                 —		$      2,145		$          2,965		$              100		$      3,065
Home equity loans and lines		508		—		508		521		—		521		676		—		676
Commercial real estate		10,207		247		10,454		12,872		455		13,327		17,843		1,008		18,851
Construction and land		3,572		—		3,572		3,628		—		3,628		4,155		—		4,155
Multi-family residential		457		—		457		627		—		627		1,077		—		1,077
Commercial and industrial		3,095		425		3,520		2,815		435		3,250		3,845		431		4,276
Consumer		634		—		634		651		—		651		863		—		863
Total allowance for loan losses		$        20,417		$              672		$    21,089		$        23,259		$              890		$    24,149		$        31,424		$           1,539		$    32,963
Unfunded lending commitments(1)		1,815		—		1,815		1,800		—		1,800		1,425		—		1,425
Total allowance for credit losses		$        22,232		$              672		$    22,904		$        25,059		$              890		$    25,949		$        32,849		$           1,539		$    34,388
Allowance for loan losses to nonperforming assets						145.80						155.48						164.97
Allowance for loan losses to nonperforming loans						158.86						166.53						176.47
Allowance for loan losses to total loans						1.15						1.29						1.66
Allowance for credit losses to total loans						1.24						1.38						1.74
Year-to-date loan charge-offs						$      2,305						$      1,807						$      2,601
Year-to-date loan recoveries						592						506						335
Year-to-date net loan charge-offs						$      1,713						$      1,301						$      2,266
Annualized YTD net loan charge-offs to average loans						0.09 %						0.09 %						0.12 %
(1)     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.

FAQ

What were Home Bancorp's Q4 2021 earnings?

Home Bancorp reported a net income of $10.2 million for Q4 2021.

When will Home Bancorp's dividend be paid?

The quarterly cash dividend of $0.23 per share will be payable on February 18, 2022.

What caused the decline in Home Bancorp's net income in Q4 2021?

The decline was primarily due to a decrease in interest income from PPP loans and the absence of life insurance benefits.

What is the total loan amount reported by Home Bancorp?

Home Bancorp reported total loans of $1.8 billion as of December 31, 2021.

What are Home Bancorp's plans for expansion in 2022?

Home Bancorp expects strong loan growth and plans to expand into the Houston market in 2022.