Home Bancorp, Inc. Announces 2020 Second Quarter Results And Declares Quarterly Dividend

Rhea-AI Summary

Home Bancorp, Inc. (HBCP) reported second quarter 2020 net income of $2.5 million, up from $1.9 million in Q1. The Company funded approximately 2,970 Paycheck Protection Program loans totaling $260.2 million, helping borrowers mitigate COVID-19 impacts. Total loans grew by $226.8 million due primarily to PPP loans. However, noninterest income declined by 8%, and the net interest margin decreased to 3.75% from 4.18%. A quarterly cash dividend of $0.22 is payable on August 21, 2020. Total deposits increased by $409.2 million, reflecting strong customer support.

Positive

• Net income increased to $2.5 million, or $0.29 diluted EPS.
• Total loans grew by $226.8 million, primarily due to PPP loans.
• Total deposits rose by $409.2 million, or 22%, to $2.3 billion.
• Quarterly dividend of $0.22 per share announced, payable August 21, 2020.

Negative

• Net interest margin decreased from 4.18% to 3.75%.
• Noninterest income fell by 8% from the previous quarter.

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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