Home Bancorp, Inc. Announces 2021 Third Quarter Results, New Share Repurchase Plan And Declares Quarterly Dividend

Rhea-AI Summary

Home Bancorp, Inc. (HBCP) reported a net income of $15.1 million for Q3 2021, up 32% from the previous quarter. This equates to $1.79 EPS versus $1.34 EPS in Q2 2021. The reversal of $2.4 million in loan loss provisions reflects improved economic conditions, despite challenges from COVID-19 and Hurricane Ida. Total loans decreased 2% on a reported basis but grew 14% annually excluding forgiven PPP loans. The company declared a quarterly dividend of $0.23 per share and initiated a share repurchase plan for up to 430,000 shares.

Positive

• Net income increased to $15.1 million, up 32% from Q2 2021.
• EPS rose to $1.79 from $1.34 in the previous quarter.
• Reversal of loan loss provisions of $2.4 million indicates improving credit quality.
• Total loans grew by $58.7 million, or 14% annualized, excluding PPP loans.
• Announced quarterly dividend of $0.23 per share.
• Initiated a new share repurchase plan for up to 430,000 shares.

Negative

• Total loans decreased by $43.3 million, or 2%, from Q2 2021.
• PPP loans declined by $102.1 million, or 52%, from the previous quarter.

LAFAYETTE, La., Oct. 26, 2021 /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 third quarter of 2021.  For the quarter, the Company reported net income of $15.1 million, or $1.79 per diluted common share ("diluted EPS"), up $3.7 million from $11.4 million, or $1.34 diluted EPS, for the second quarter of 2021.

"We are pleased to report strong earnings, stable credit quality and a reversal of loan loss provision as a result of improving economic conditions despite another surge of COVID-19 and the impact of Hurricane Ida in our markets," said John W. Bordelon, Chairman, President and Chief Executive Officer of the Company and the Bank.  "Total loans declined on a reported basis of 2% from the previous quarter due to the increase level of Paycheck Protection Program ("PPP") loans forgiven.  Excluding PPP loans, total loans increased  $58.7 million, or 14% on an annualized basis." 

"We are committed to help one another, our customers and communities as we recover from the hurricane and COVID 19.  We believe this focus will drive growth and value for our shareholders."

COVID-19 Impacts

After an increase in COVID-19 cases during the quarter, Louisiana reinstituted its indoor mask mandate in August 2021.  Mississippi's COVID-19 restrictions were lifted during the first quarter of 2021.

Under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"), the Company funded 4,875 PPP loans totaling $388.7 million during 2020 and 2021, in aggregate. At September 30, 2021, the total recorded net investment in PPP loans was $95.6 million, of which 565 loans with an aggregate outstanding balance of $17.9 million were for amounts of $150,000 or less.

To give immediate financial support to customers, the Company began providing principal and/or interest payment deferral options in March 2020. At September 30, 2021,  $4.5 million, or less than 1% of total loans, were under COVID-19 related deferral agreements. The level of COVID-19 deferrals previously totaled $558.8 million, or 28% of total loans, at June 30, 2020. Of the loans that have exited deferral agreements, $384.8 million, or 99%, were current and performing as of September 30, 2021.

 Third Quarter 2021 Highlights

• Net income totaled $15.1 million, up $3.7 million, or 32%, from the prior quarter.
• Return on average assets, return on average equity and return on average tangible common equity were 2.17%, 17.46% and 21.68%, respectively.
• The Company recorded a $2.4 million reversal to the allowance for loan losses, compared to a $3.4 million allowance reversal in the prior quarter, primarily due to improvements in our assessment of the economic impact of the COVID-19 pandemic.
• Loan income from the recognition of deferred PPP lender fees totaled $4.4 million, up $2.6 million from the prior quarter.
• Noninterest income was up $2.1 million, or 63%, from the prior quarter primarily due to income from bank-owned life insurance and the absence of a $457,000 loss on the sale of a branch location recorded 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 $1.9 billion at September 30, 2021, down $43.3 million, or 2%, from June 30, 2021. Excluding PPP loans, total loans were up $58.7 million, or 14% annualized, from June 30, 2021.
• PPP loans totaled $95.6 million at September 30, 2021, down $102.1 million, or 52%, from June 30, 2021.
• The allowance for loan losses totaled $24.1 million, or 1.29% of total loans, at September 30, 2021. Excluding PPP loans, the ratio of allowance for loan losses to total loans was 1.36%, at such date.
• Preliminary Tier 1 leverage capital and total risk-based capital ratios were 10.05% and 15.60%, respectively, at September 30, 2021, compared to 9.89% and 16.07%, respectively, at June 30, 2021.

Loans

Loans totaled $1.9 billion at September 30, 2021, down $43.3 million, or 2%, from June 30, 2021. PPP loans, included in commercial and industrial loans, decreased $102.1 million, or 52%, from June 30, 2021. The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from June 30, 2021 to September 30, 2021. 

(dollars in thousands)		9/30/2021				6/30/2021				Increase (Decrease)
Real estate loans:
One- to four-family first mortgage		$	360,150			$	365,640			$	(5,490)			(2)	%
Home equity loans and lines		59,667				64,614				(4,947)				(8)
Commercial real estate		802,401				755,707				46,694				6
Construction and land		241,286				233,714				7,572				3
Multi-family residential		92,062				82,966				9,096				11
Total real estate loans		1,555,566				1,502,641				52,925				4
Other loans:
Commercial and industrial		284,831				380,751				(95,920)				(25)
Consumer		34,779				35,096				(317)				(1)
Total other loans		319,610				415,847				(96,237)				(23)
Total loans		$	1,875,176			$	1,918,488			$	(43,312)			(2)	%

Excluding PPP loans, total loans grew by $58.7 million, or 14% annualized, from June 30, 2021 to September 30, 2021. Commercial real estate and construction and land loan growth was primarily within our New Orleans and Northshore markets. At September 30, 2021, our New Orleans and Northshore markets were responsible for approximately 50% of the commercial real estate portfolio and 46% of the construction and land portfolio. The growth in multifamily loans was primarily due to the conversion of existing construction loans to permanent financing.

Credit Quality and Allowance for Credit Losses

At September 30, 2021 and June 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 $15.5 million, or 0.56% of total assets, at September 30, 2021, up $443,000, or 3%, from $15.1 million, or 0.55% of total assets, at June 30, 2021. During the third quarter of 2021, the Company recorded net loan charge-offs of $153,000, compared to net recoveries of $119,000 during the second quarter of 2021.

The Company reversed $2.4 million of the allowance for loan losses in the third quarter of 2021 primarily due to improvements in our assessment of the economic impact of the COVID-19 pandemic. For the nine months ended September 30, 2021, we reversed a total of $7.5 million of the allowance for loan losses. At September 30, 2021, the allowance for loan losses totaled $24.1 million, or 1.29% of total loans, compared to $26.7 million, or 1.39% of total loans, at June 30, 2021. Excluding PPP loans, the ratios of the allowance for loan losses to total loans were 1.36% and 1.55% at September 30, 2021 and June 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 $2.4 billion at September 30, 2021, down $5.0 million, or less than 1%, from June 30, 2021. The following table summarizes the changes in the Company's deposits from June 30, 2021 to September 30, 2021.

(dollars in thousands)		9/30/2021				6/30/2021				Increase (Decrease)
Demand deposits		$	728,352			$	715,167			$	13,185			2	%
Savings		280,651				277,899				2,752				1
Money market		355,923				362,938				(7,015)				(2)
NOW		669,414				680,297				(10,883)				(2)
Certificates of deposit		331,377				334,463				(3,086)				(1)
Total deposits		$	2,365,717			$	2,370,764			$	(5,047)			—	%

The average rate on interest-bearing deposits decreased nine basis points from 0.36% for the second quarter of 2021 to 0.27% for the third quarter of 2021. At September 30, 2021, certificates of deposit maturing within the next 12 months totaled $271.6 million.

Net Interest Income

The net interest margin ("NIM") increased 41 basis points from 3.75% for the second quarter of 2021 to 4.16% for the third quarter of 2021 primarily due to an increase in the average yield on loans. Loan income from the recognition of deferred PPP lender fees totaled $4.4 million during the third quarter of 2021, up $2.6 million, or 146%, compared to the second quarter of 2021.

The average loan yield was 5.60% for the third quarter of 2021, up 65 basis points from the second quarter of 2021.  During the third quarter of 2021, recognition of deferred lender fees from PPP loans increased the average loan yield by 60 basis points and increased the NIM by 52 basis points. During the second quarter of 2021, PPP loans decreased the average loan yield by 11 basis points and increased the NIM by four basis points. Excluding the impact of PPP loans, the average loan yield decreased six basis points and the NIM decreased seven basis points from the second quarter of 2021.

Average PPP loans were $144.6 million for the third quarter of 2021, down $83.5 million, or 37%, from the second quarter of 2021.  Unrecognized PPP lender fees totaled $3.3 million at September 30, 2021.

Average other interest-earning assets were $388.7 million for the third quarter of 2021, up $74.8 million, or 24%, from the second quarter of 2021 primarily due to an increase in cash and cash equivalents. During the third quarter of 2021, the increase in cash and cash equivalents from the prior quarter negatively impacted the NIM by 12 basis points.

Loan accretion income from acquired loans totaled $556,000 for the third quarter of 2021 and $585,000 for the second 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%.

		Quarter Ended
		9/30/2021											6/30/2021
(dollars in thousands)		Average Balance				Interest				Average Yield/ Rate			Average Balance				Interest				Average Yield/ Rate
Interest-earning assets:
Loans receivable		$	1,896,808			$	27,045			5.60	%		$	1,963,935			$	24,500			4.95	%
Investment securities (TE)		278,450				1,189				1.74			276,896				1,130				1.67
Other interest-earning assets		388,723				189				0.19			313,954				133				0.17
Total interest-earning assets		$	2,563,981			$	28,423			4.36	%		$	2,554,785			$	25,763			4.01	%
Interest-bearing liabilities:
Deposits:
Savings, checking, and money market		$	1,312,131			$	605			0.18	%		$	1,315,432			$	842			0.26	%
Certificates of deposit		332,916				515				0.61			341,300				638				0.75
Total interest-bearing deposits		1,645,047				1,120				0.27			1,656,732				1,480				0.36
Other borrowings		5,539				53				3.80			5,539				53				3.84
FHLB advances		27,011				116				1.72			27,699				120				1.73
Total interest-bearing liabilities		$	1,677,597			$	1,289			0.31	%		$	1,689,970			$	1,653			0.39	%
Net interest spread (TE)										4.05	%										3.62	%
Net interest margin (TE)										4.16	%										3.75	%

Noninterest Income

Noninterest income for the third quarter of 2021 totaled $5.4 million, up $2.1 million, or 63%, from the second quarter of 2021.

Income from bank-owned life insurance was up $1.7 million from the second quarter of 2021. The Company recognized a life insurance benefit of $1.7 million following the death of an employee during the third quarter of 2021.

Losses on the sale of assets fell $454,000 from the prior quarter. During the second quarter of 2021, the Company sold and leased back one of its Mississippi branch locations. The sale transferred control to the buyer-lessor and all losses were recognized at the time of the sale.

Gains on the sale of loans were down $144,000, or 26%, from the second quarter of 2021.

Noninterest Expense

Noninterest expense for the third quarter of 2021 totaled $16.4 million, down $137,000, or 1%, from the second quarter of 2021.

The Company did not record a provision for credit losses on unfunded loan commitments for the third quarter of 2021. During the second quarter of 2021, the Company provisioned $375,000 for credit losses on unfunded loan commitments primarily due to the growth in unfunded construction loan commitments.

Marketing and advertising expense was up $131,000 from the second quarter of 2021 primarily due to an increase in charitable donations and general advertising activities during the third quarter of 2021.

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 November 19, 2021, to shareholders of record as of November 8, 2021. 

The Company also announced that the Board of Directors approved a new share repurchase plan (the "2021 Repurchase Plan"). Under the 2021 Repurchase Plan, the Company may purchase up to 430,000 shares, or approximately 5% of the Company's outstanding common stock.  Share repurchases under the 2021 Repurchase Plan may commence upon the completion of the Company's 2020 Repurchase Plan. There are 56,583 shares remaining that may be repurchased under the 2020 Repurchase Plan. The repurchase plans do not include specific price targets and may be executed through the open market or privately-negotiated transactions depending upon market conditions and other factors. The repurchase plans have no time limit and may be suspended or discontinued at any time.

The Company repurchased 159,762 shares of its common stock during the third quarter of 2021 at an average price per share of $37.45. An additional 56,583 shares remain eligible for purchase under the 2020 Repurchase Plan.  The book value per share and tangible book value per share of the Company's common stock was $40.38 and $33.08, respectively, at September 30, 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 on non-GAAP information included herein to GAAP is presented below.

		Quarter Ended
(dollars in thousands, except per share data)		9/30/2021				6/30/2021				9/30/2020
Reported net income		$	15,059			$	11,396			$	8,782
Add: Core deposit intangible amortization, net tax		230				232				267
Non-GAAP tangible income		$	15,289			$	11,628			$	9,049
Reported loan income		$	27,045			$	24,500			$	24,769
Less: PPP loan income		4,742				2,372				1,729
Loan income excluding PPP loan income		$	22,303			$	22,128			$	23,040
Loan yield		5.60		%		4.95		%		4.94		%
(Positive) negative impact of PPP loans		(0.60)				0.11				0.34
Loan yield excluding PPP loans		5.00		%		5.06		%		5.28		%
Net interest margin		4.16		%		3.75		%		3.82		%
(Positive) negative impact of PPP loans		(0.52)				(0.04)				0.14
Net interest margin excluding PPP loans		3.64		%		3.71		%		3.96		%
Total assets		$	2,763,466			$	2,764,756			$	2,578,735
Less: Intangible assets		62,229				62,520				63,439
Non-GAAP tangible assets		$	2,701,237			$	2,702,236			$	2,515,296
Total shareholders' equity		$	344,149			$	337,812			$	315,068
Less: Intangible assets		62,229				62,520				63,439
Non-GAAP tangible shareholders' equity		$	281,920			$	275,292			$	251,629
Total loans		$	1,875,176			$	1,918,488			$	1,955,297
Less: PPP loans		95,560				197,614				254,487
Total loans excluding PPP loans		$	1,779,616			$	1,720,874			$	1,700,810
Allowance for loan losses to total loans		1.29		%		1.39		%		1.69		%
Less: PPP loans		0.07				0.16				0.25
Non-GAAP allowance for loan losses to total loans		1.36		%		1.55		%		1.94		%
Return on average equity		17.46		%		13.68		%		11.11		%
Add: Average intangible assets		4.22				3.50				3.23
Non-GAAP return on average tangible common equity		21.68		%		17.18		%		14.34		%
Common equity ratio		12.45		%		12.22		%		12.22		%
Less: Intangible assets		2.01				2.03				2.22
Non-GAAP tangible common equity ratio		10.44		%		10.19		%		10.00		%
Book value per share		$	40.38			$	38.92			$	35.68
Less: Intangible assets		7.30				7.20				7.19
Non-GAAP tangible book value per share		$	33.08			$	31.72			$	28.49

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 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)		9/30/2021				6/30/2021				% Change			9/30/2020
Assets
Cash and cash equivalents		$	413,694			$	393,203			5	%		$	185,836
Interest-bearing deposits in banks		349				349				—			349
Investment securities available for sale, at fair value		304,125				285,185				7			251,578
Investment securities held to maturity		2,110				2,118				—			2,942
Mortgage loans held for sale		3,476				3,752				(7)			21,045
Loans, net of unearned income		1,875,176				1,918,488				(2)			1,955,297
Allowance for loan losses		(24,149)				(26,687)				(10)			(33,002)
Total loans, net of allowance for loan losses		1,851,027				1,891,801				(2)			1,922,295
Office properties and equipment, net		44,331				44,232				—			45,696
Cash surrender value of bank-owned life insurance		40,142				40,781				(2)			40,184
Goodwill and core deposit intangibles		62,229				62,520				—			63,439
Accrued interest receivable and other assets		41,983				40,815				3			45,371
Total Assets		$	2,763,466			$	2,764,756			—			$	2,578,735
Liabilities
Deposits		$	2,365,717			$	2,370,764			—	%		$	2,207,494
Other Borrowings		5,539				5,539				—			5,539
Federal Home Loan Bank advances		26,430				27,502				(4)			31,445
Accrued interest payable and other liabilities		21,631				23,139				(7)			19,189
Total Liabilities		2,419,317				2,426,944				—			2,263,667
Shareholders' Equity
Common stock		85				87				(2)	%		88
Additional paid-in capital		164,316				165,296				(1)			165,522
Common stock acquired by benefit plans		(2,513)				(2,604)				3			(2,880)
Retained earnings		180,327				171,644				5			147,117
Accumulated other comprehensive income		1,934				3,389				(43)			5,221
Total Shareholders' Equity		344,149				337,812				2			315,068
Total Liabilities and Shareholders' Equity		$	2,763,466			$	2,764,756			—			$	2,578,735

 

HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
		Quarter Ended
(dollars in thousands, except per share data)		9/30/2021				6/30/2021				% Change			9/30/2020				% Change
Interest Income
Loans, including fees		$	27,045			$	24,500			10	%		$	24,769			9	%
Investment securities		1,189				1,130				5			967				23
Other investments and deposits		189				133				42			106				78
Total interest income		28,423				25,763				10			25,842				10
Interest Expense
Deposits		1,120				1,480				(24)	%		2,368				(53)	%
Other borrowings		53				53				—			53				—
Federal Home Loan Bank advances		116				120				(3)			149				(22)
Total interest expense		1,289				1,653				(22)			2,570				(50)
Net interest income		27,134				24,110				13			23,272				17
(Reversal) provision for loan losses		(2,385)				(3,425)				30			—				—
Net interest income after (reversal) provision for loan losses		29,519				27,535				7			23,272				27
Noninterest Income
Service fees and charges		1,260				1,146				10	%		1,123				12	%
Bank card fees		1,519				1,591				(5)			1,331				14
Gain on sale of loans, net		415				559				(26)			904				(54)
Income from bank-owned life insurance		1,938				221				777			231				739
Loss on sale of assets, net		(3)				(457)				99			—				—
Other income		254				234				9			205				24
Total noninterest income		5,383				3,294				63			3,794				42
Noninterest Expense
Compensation and benefits		9,809				9,687				1	%		9,740				1	%
Occupancy		1,717				1,733				(1)			1,686				2
Marketing and advertising		399				268				49			288				39
Data processing and communication		2,118				2,159				(2)			1,851				14
Professional fees		234				217				8			197				19
Forms, printing and supplies		158				163				(3)			140				13
Franchise and shares tax		360				359				—			378				(5)
Regulatory fees		301				306				(2)			526				(43)
Foreclosed assets, net		74				101				(27)			162				(54)
Amortization of acquisition intangible		291				293				(1)			338				(14)
Provision for credit losses on unfunded commitments		—				375				(100)			—				—
Other expenses		970				907				7			810				20
Total noninterest expense		16,431				16,568				(1)			16,116				2
Income before income tax expense		18,471				14,261				30			10,950				69
Income tax expense		3,412				2,865				19			2,168				57
Net income		$	15,059			$	11,396			32			$	8,782			71
Earnings per share - basic		$	1.80			$	1.35			33	%		$	1.01			78	%
Earnings per share - diluted		$	1.79			$	1.34			34	%		$	1.01			77	%
Cash dividends declared per common share		$	0.23			$	0.23			—	%		$	0.22			5	%

 

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
(Unaudited)
		Quarter Ended
(dollars in thousands, except per share data)		9/30/2021				6/30/2021				% Change			9/30/2020				% Change
EARNINGS DATA
Total interest income		$	28,423			$	25,763			10	%		$	25,842			10	%
Total interest expense		1,289				1,653				(22)			2,570				(50)
Net interest income		27,134				24,110				13			23,272				17
(Reversal) provision for loan losses		(2,385)				(3,425)				30			—				—
Total noninterest income		5,383				3,294				63			3,794				42
Total noninterest expense		16,431				16,568				(1)			16,116				2
Income tax expense		3,412				2,865				19			2,168				57
Net income		$	15,059			$	11,396			32			$	8,782			71
AVERAGE BALANCE SHEET DATA
Total assets		$	2,756,353			$	2,741,801			1	%		$	2,581,774			7	%
Total interest-earning assets		2,563,981				2,554,785				—			2,394,445				7
Total loans		1,896,808				1,963,935				(3)			1,971,174				(4)
PPP loans		144,626				228,114				(37)			252,504				(43)
Total interest-bearing deposits		1,645,047				1,656,732				(1)			1,577,404				4
Total interest-bearing liabilities		1,677,597				1,689,970				(1)			1,617,555				4
Total deposits		2,358,086				2,355,315				—			2,208,825				7
Total shareholders' equity		342,189				334,092				2			314,585				9
PER SHARE DATA
Earnings per share - basic		$	1.80			$	1.35			33	%		$	1.01			78	%
Earnings per share - diluted		1.79				1.34				34			1.01				77
Book value at period end		40.38				38.92				4			35.68				13
Tangible book value at period end		33.08				31.72				4			28.49				16
Shares outstanding at period end		8,523,473				8,678,686				(2)			8,831,406				(3)
Weighted average shares outstanding
Basic		8,354,176				8,448,777				(1)	%		8,627,318				(3)	%
Diluted		8,405,610				8,499,103				(1)			8,651,066				(3)
SELECTED RATIOS (1)
Return on average assets		2.17		%		1.67		%		30	%		1.35		%		61	%
Return on average equity		17.46				13.68				28			11.11				57
Common equity ratio		12.45				12.22				2			12.22				2
Efficiency ratio (2)		50.53				60.46				(16)			59.54				(15)
Average equity to average assets		12.41				12.19				2			12.18				2
Tier 1 leverage capital ratio (3)		10.05				9.89				2			9.44				6
Total risk-based capital ratio (3)		15.60				16.07				(3)			15.29				2
Net interest margin (4)		4.16				3.75				11			3.82				9
SELECTED NON-GAAP RATIOS (1)
Tangible common equity ratio (5)		10.44		%		10.19		%		2	%		10.00		%		4	%
Return on average tangible common equity (6)		21.68				17.18				26			14.34				51

(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)
		9/30/2021												6/30/2021												9/30/2020
(dollars in thousands)		Originated				Acquired				Total				Originated				Acquired				Total				Originated				Acquired				Total
CREDIT QUALITY (1)
Nonaccrual loans(2)		$	8,592			$	5,896			$	14,488			$	8,279			$	5,693			$	13,972			$	12,204			$	10,639			$	22,843
Accruing loans 90 days or more past due		13				—				13				4				—				4				10				—				10
Total nonperforming loans		8,605				5,896				14,501				8,283				5,693				13,976				12,214				10,639				22,853
Foreclosed assets and ORE		772				259				1,031				724				389				1,113				956				1,029				1,985
Total nonperforming assets		9,377				6,155				15,532				9,007				6,082				15,089				13,170				11,668				24,838
Performing troubled debt restructurings		3,961				1,085				5,046				4,117				1,103				5,220				910				480				1,390
Total nonperforming assets and troubled debt restructurings		$	13,338			$	7,240			$	20,578			$	13,124			$	7,185			$	20,309			$	14,080			$	12,148			$	26,228
Nonperforming assets to total assets										0.56		%										0.55		%										0.96		%
Nonperforming loans to total assets										0.52												0.51												0.89
Nonperforming loans to total loans										0.77												0.73												1.17

(1)	It is our policy to cease accruing interest on loans 90 days or more past due, with certain limited exceptions. 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.
(2)	Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $4.1 million, $4.1 million and $7.2 million at September 30, 2021, June 30, 2021 and September 30, 2020, respectively. Acquired restructured loans placed on nonaccrual totaled $3.5 million, $3.5 million and $1.2 million at September 30, 2021, June 30, 2021 and September 30, 2020, respectively.

 

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION - CONTINUED
(Unaudited)
		9/30/2021												6/30/2021												9/30/2020
		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		$	2,145			$	—			$	2,145			$	2,397			$	—			$	2,397			$	3,413			$	—			$	3,413
Home equity loans and lines		521				—				521				582				—				582				771				—				771
Commercial real estate		12,872				455				13,327				15,219				218				15,437				17,662				689				18,351
Construction and land		3,628				—				3,628				3,585				—				3,585				4,078				—				4,078
Multi-family residential		627				—				627				745				—				745				1,067				—				1,067
Commercial and industrial		2,815				435				3,250				2,790				478				3,268				4,006				431				4,437
Consumer		651				—				651				673				—				673				885				—				885
Total allowance for credit losses		$	23,259			$	890			$	24,149			$	25,991			$	696			$	26,687			$	31,882			$	1,120			$	33,002
Unfunded lending commitments(3)		1,800				—				1,800				1,800				—				1,800				1,425				—				1,425
Total allowance for credit losses		$	25,059			$	890			$	25,949			$	27,791			$	696			$	28,487			$	33,307			$	1,120			$	34,427
Allowance for loan losses to nonperforming assets										155.48												176.86												132.87
Allowance for loan losses to nonperforming loans										166.53												190.95												144.41
Allowance for loan losses to total loans										1.29												1.39												1.69
Allowance for credit losses to total loans										1.38												1.48												1.76
Year-to-date loan charge-offs										$	1,807											$	1,559											$	2,522
Year-to-date loan recoveries										506												411												295
Year-to-date net loan charge-offs										$	1,301											$	1,148											$	2,227
Annualized YTD net loan charge-offs to average loans										0.09		%										0.12		%										0.16		%

(3)	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 are the key financial results for Home Bancorp (HBCP) in Q3 2021?

Home Bancorp reported a net income of $15.1 million and an EPS of $1.79 for Q3 2021, a 32% increase from Q2.

What is the purpose of the new share repurchase plan announced by HBCP?

The share repurchase plan allows HBCP to buy back up to 430,000 shares, aiming to enhance shareholder value.

What was the impact of COVID-19 and Hurricane Ida on HBCP's financial results?

Despite the challenges, HBCP experienced strong earnings and stable credit quality, with a reversal of loan loss provisions.

How have PPP loans affected HBCP's loan portfolio in Q3 2021?

PPP loans decreased by 52% from the previous quarter, contributing to an overall decline in total loans by 2%.

What dividend has HBCP declared for its shareholders?

HBCP declared a quarterly cash dividend of $0.23 per share, payable on November 19, 2021.