HOME BANCORP, INC. ANNOUNCES 2022 SECOND QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND

Rhea-AI Summary

Home Bancorp, Inc. (HBCP) reported a strong second quarter of 2022 with net income reaching $8.5 million or $1.03 per diluted share, up from $4.4 million or $0.53 in Q1 2022. The company experienced a 3% increase in total loans, amounting to $2.2 billion, and a 24% rise in net interest income to $29.2 million. The net interest margin improved to 3.76%.

Home Bancorp successfully completed the data conversion of Texan Bank's systems while issuing $55 million in subordinated notes. A dividend of $0.23 per share was declared.

Positive

• Net income increased to $8.5 million, up 93% from Q1 2022.
• Total loans rose 3%, reaching $2.2 billion.
• Net interest income increased by 24% to $29.2 million.
• Improved net interest margin from 3.39% to 3.76%.
• Successfully completed Texan Bank data conversion.
• Declared a quarterly dividend of $0.23 per share.

Negative

• Nonperforming assets decreased only marginally to $18.8 million.
• Total deposits fell by $20.8 million, or 1%.

LAFAYETTE, La., July 26, 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 second quarter of 2022. For the quarter, the Company reported net income of $8.5 million, or $1.03 per diluted common share ("diluted EPS"), up $4.1 million from $4.4 million, or $0.53 diluted EPS, for the first quarter of 2022. The second and first quarters of 2022 include merger expenses, net of taxes totaling $1.3 million and $284,000, respectively, related to the acquisition of Friendswood Capital Corporation ("Friendswood"), the former holding company of Texan Bank, N. A. ("Texan Bank") of Houston, Texas, which was consummated on March 26, 2022. Income pre-tax, pre-provision and pre-PPP income totaled $10.8 million, up $2.6 million, or 32%, from the prior quarter.

"We are pleased to report strong earnings and loan growth throughout our footprint including growth from our most recent acquisition of Friendswood," President and Chief Executive Officer of the Company and the Bank. "The data conversion of Texan Bank's systems was successfully completed the last week of June. We are tremendously thankful to the employees who have done an outstanding job bringing together Home Bank and Texan Bank."

"Total loans increased on a reported basis from the previous quarter 3%. Excluding PPP loans, total loans increased $77.4 million, or 14% on an annualized basis of which approximately 19% was attributable to the Houston market. We are excited to see the growth opportunities in Houston and all of our markets."

Second Quarter 2022 Highlights

• Data conversion of Texan Bank's systems completed on schedule during the last week of June.
  
  
• On June 30, 2022, the Company issued $55.0 million of its 5.75% fixed-to-floating rate subordinated notes due 2032 to certain qualified institutional buyers and institutional accredited investors.
  
  
• Net interest income totaled $29.2 million, up $5.7 million, or 24% from the prior quarter. Excluding PPP income, net interest income totaled $28.8 million, up $6.1 million, or 27% from the prior quarter.
  
  
• The net interest margin ("NIM") increased 37 basis points from 3.39% for the first quarter of 2022 to 3.76%. Excluding PPP, NIM increased 42 basis points during the second quarter of 2022 to 3.73%.
  
  
• The Company recorded a $591,000 provision to the allowance for loan losses primarily due to loan growth, which was partially offset by continued improvement in industry economic conditions, compared to a $3.2 million provision to the allowance for loan losses in the prior quarter primarily due to the acquisition of Texan Bank.
  
  
• Loan income from the recognition of deferred PPP lender fees totaled $370,000 in the second quarter, down $351,000 from the prior quarter.
  
  
• Loans totaled $2.2 billion at June 30, 2022, up $66.7 million, or 3%, from March 31, 2022. Excluding PPP loans, total organic loans were up $77.4 million, or 14% annualized, from March 31, 2022.
  
  
• PPP loans totaled $12.1 million at June 30, 2022, down $10.7 million, or 47%, from March 31, 2022.
  
  
• The allowance for loan losses totaled $26.0 million, or 1.17% of total loans, at June 30, 2022. Excluding PPP loans, the ratio of allowance for loan losses to total loans was 1.18%, at such date.
  
  
• Investment securities totaled $482.1 million at June 30, 2022, up $64.7 million or 16% from March 31, 2022.
  
  
• Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.30% and 13.74%, respectively, at June 30, 2022, compared to 8.67% and 12.28%, respectively, at March 31, 2022.

Loans

Loans totaled $2.2 billion at June 30, 2022, up $66.7 million, or 3%, from March 31, 2022. PPP loans, included in commercial and industrial loans, decreased $10.7 million, or 47%, from March 31, 2022. The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from March 31, 2022 to June 30, 2022. 

(dollars in thousands)		6/30/2022		3/31/2022		Increase (Decrease)
Real estate loans:
One- to four-family first mortgage		$           369,410		$           363,377		$       6,033		2 %
Home equity loans and lines		59,799		58,375		1,424		2
Commercial real estate		1,053,696		1,046,568		7,128		1
Construction and land		317,351		297,079		20,272		7
Multi-family residential		101,136		98,527		2,609		3
Total real estate loans		1,901,392		1,863,926		37,466		2
Other loans:
Commercial and industrial		290,157		260,843		29,314		11
Consumer		33,106		33,200		(94)		—
Total other loans		323,263		294,043		29,220		10
Total loans		$        2,224,655		$        2,157,969		$     66,686		3 %

Commercial and industrial and construction and land loans were the primary drivers for the loan growth during the second quarter of 2022. Commercial and industrial loan growth for the current quarter was primarily in the Acadiana market with the addition of new lenders with primary focus on this loan type. At June 30, 2022, the growth in construction and land was primarily within our Houston, New Orleans, Northshore and Acadiana markets.

Credit Quality and Allowance for Credit Losses

Nonperforming assets ("NPAs") totaled $18.8 million, or 0.56% of total assets, at June 30, 2022, down $3.6 million, or 16%, from $22.4 million, or 0.67% of total assets, at March 31, 2022. During the second quarter of 2022, the Company recorded net loan charge-offs of $439,000, compared to net recoveries of $149,000 during the first quarter of 2022. The increase in charge-offs during the current quarter was primarily due to loans acquired in the Texan Bank acquisition totaling $474,000, which was offset with recoveries.

The Company provisioned $591,000 to the allowance for loan losses in the second quarter of 2022. During the first quarter of 2022, the Company provisioned a total of $3.2 million to the allowance for loan losses primarily due to the acquisition of Texan Bank's loan portfolio. At June 30, 2022, the allowance for loan losses totaled $26.0 million, or 1.17% of total loans, compared to $26.7 million, or 1.24% of total loans, at March 31, 2022. Excluding PPP loans, the ratios of the allowance for loan losses to total loans were 1.18% and 1.25% at June 30, 2022 and March 31, 2022, 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 $2.9 billion at June 30, 2022, down $20.8 million, or 1%, from March 31, 2022. The following table summarizes the changes in the Company's deposits from March 31, 2022 to June 30, 2022.

(dollars in thousands)		6/30/2022		3/31/2022		Increase (Decrease)
Demand deposits		$           938,531		$           913,137		$             25,394		3 %
Savings		316,974		315,356		1,618		1
Money market		483,951		484,847		(896)		—
NOW		791,692		806,501		(14,809)		(2)
Certificates of deposit		389,228		421,338		(32,110)		(8)
Total deposits		$        2,920,376		$        2,941,179		$            (20,803)		(1) %

The average rate on interest-bearing deposits increased two basis points from 0.20% for the first quarter of 2022 to 0.22% for the second quarter of 2022. At June 30, 2022, certificates of deposit maturing within the next 12 months totaled $297.0 million.

Net Interest Income

The net interest margin ("NIM") increased 37 basis points from 3.39% for the first quarter of 2022 to 3.76% for the second quarter of 2022 primarily due to an increase in the average yield on interest-earning assets. Loan income from the recognition of deferred PPP lender fees totaled $370,000 during the second quarter of 2022, down $351,000, or 49%, compared to the first quarter of 2022.

The average loan yield was 4.94% for the second quarter of 2022, up 6 basis points from the first quarter of 2022.  During the second quarter of 2022, income from PPP loans increased the average loan yield by 3 basis points and increased the NIM by 3 basis points. During the first quarter of 2022, PPP loans positively impacted the average loan yield by 9 basis points and the NIM by 8 basis points.

Average PPP loans were $15.5 million for the second quarter of 2022, down $15.9 million, or 51%, from the first quarter of 2022. Unrecognized PPP lender fees totaled $210,000 at June 30, 2022.

Average other interest-earning assets were $422.3 million for the second quarter of 2022, down $139.0 million, or 25%, from the first quarter of 2022 primarily due to a reallocation of certain other assets to partially fund the increase in investment securities.

Loan accretion income from acquired loans totaled $879,000 for the second quarter of 2022, up $422,000, or 92% from   the first quarter of 2022.

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
		6/30/2022						3/31/2022
(dollars in thousands)		Average Balance		Interest		Average Yield/ Rate		Average Balance		Interest		Average Yield/ Rate
Interest-earning assets:
Loans receivable		$  2,190,721		$       27,304		4.94 %		$  1,862,616		$       22,671		4.88 %
Investment securities (TE)		475,853		2,338		1.99		359,736		1,618		1.82
Other interest-earning assets		422,265		863		0.82		561,262		277		0.20
Total interest-earning assets		$  3,088,839		$       30,505		3.93 %		$  2,783,614		$       24,566		3.54 %
Interest-bearing liabilities:
Deposits:
Savings, checking, and money market		$  1,584,118		$             673		0.17 %		$  1,461,966		$             530		0.15 %
Certificates of deposit		406,367		430		0.42		317,866		363		0.46
Total interest-bearing deposits		1,990,485		1,103		0.22		1,779,832		893		0.20
Other borrowings		6,580		54		3.26		5,539		53		3.89
FHLB advances		25,426		107		1.69		25,795		109		1.70
Total interest-bearing liabilities		$  2,022,491		$          1,264		0.25 %		$  1,811,166		$          1,055		0.24 %
Net interest spread (TE)						3.68 %						3.30 %
Net interest margin (TE)						3.76 %						3.39 %

Noninterest Income

Noninterest income for the second quarter of 2022 totaled $3.7 million, up $300,000, or 9%, from the first quarter of 2022. Bank card fees were up $182,000, or 13% from the first quarter of 2022 primarily due to increased transaction activity by our cardholders. In addition, service fees and charges were up $92,000, or 8% from the first quarter of 2022 primarily due to deposit account service charges and overdraft fees.

Noninterest Expense

Noninterest expense for the second quarter of 2022 totaled $21.8 million, up $3.5 million, or 19%, from the first quarter of 2022. The increase related primarily to the growth of the Company's employee base, higher occupancy, data processing and communication and marketing and advertising costs due to the Friendswood acquisition. Noninterest expense for the second quarter of 2022 and the first quarter of 2022 include $1.6 million and $328,000, respectively, of merger expenses related to the acquisition of Friendswood. 

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 August 19, 2022, to shareholders of record as of August 8, 2022. 

The Company repurchased 125,499 shares of its common stock during the second quarter of 2022 at an average price per share of $40.09. An additional 274,054 shares remain eligible for purchase under the 2021 Repurchase Plan. The book value per share and tangible book value per share of the Company's common stock was $39.44 and $28.86, respectively, at June 30, 2022.

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, PPP loans and certain acquisition related metrics. 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)		6/30/2022		3/31/2022		6/30/2021
Reported net income		$           8,461		$            4,401		$         11,396
Add: Core deposit intangible amortization, net tax		359		199		232
Non-GAAP tangible income		$           8,820		$            4,600		$         11,628
Reported loan income		$         27,304		$          22,671		$         24,500
Less: PPP loan income		402		800		2,372
Loan income excluding PPP loan income		$         26,902		$          21,871		$         22,128
Provision (reversal) for loan losses		$              591		$            3,215		$          (3,425)
Less: CECL impact for acquisition		—		3,802		—
Provision (reversal) for organic loans		$              591		$              (587)		$          (3,425)
Loan yield		4.94 %		4.88 %		4.95 %
(Positive) negative impact of PPP loans		(0.03)		(0.09)		0.11
Loan yield excluding PPP loans		4.91 %		4.79 %		5.06 %
Net interest margin		3.76 %		3.39 %		3.75 %
(Positive) negative impact of PPP loans		(0.03)		(0.08)		(0.04)
Net interest margin excluding PPP loans		3.73 %		3.31 %		3.71 %
Total assets		$    3,362,216		$     3,332,228		$    2,764,756
Less: Intangible assets		88,309		87,569		62,520
Non-GAAP tangible assets		$    3,273,907		$     3,244,659		$    2,702,236
Total shareholders' equity		$       329,124		$        337,504		$       337,812
Less: Intangible assets		88,309		87,569		62,520
Non-GAAP tangible shareholders' equity		$       240,815		$        249,935		$       275,292
Total loans		$    2,224,655		$     2,157,969		$    1,918,488
Less: PPP loans		12,083		19,596		197,614
Less: PPP loans from Texan 1		—		3,163		—
Total loans excluding PPP loans		$    2,212,572		$     2,135,210		$    1,720,874
Less: Texan Bank loan portfolio, excluding PPP loans 1		—		315,744		—
Organic loan portfolio		$    2,212,572		$     1,819,466		$    1,720,874
Reported net income		$           8,461		$            4,401		$         11,396
Add: Provision (reversal) for loan losses		591		3,215		(3,425)
Add: Provision for credit losses on unfunded commitments		—		302		375
Add:  Income tax expense		2,110		1,041		2,865
Pre-tax, pre-provision income		$         11,162		$            8,959		$         11,211
Less: PPP income		402		800		2,372
Pre-tax, pre-provision, pre- PPP income		$         10,760		$            8,159		$           8,839
Allowance for loan losses to total loans		1.17 %		1.24 %		1.39 %
Less: PPP loans		0.01		0.01		0.16
Non-GAAP allowance for loan losses to total loans		1.18 %		1.25 %		1.55 %
Return on average equity		10.20 %		5.08 %		13.68 %
Add: Average intangible assets		4.23		1.39		3.50
Non-GAAP return on average tangible common equity		14.43 %		6.47 %		17.18 %
Common equity ratio		9.79 %		10.13 %		12.22 %
Less: Intangible assets		2.43		2.43		2.03
Non-GAAP tangible common equity ratio		7.36 %		7.70 %		10.19 %
Book value per share		$           39.44		$            39.93		$           38.92
Less: Intangible assets		10.58		10.36		7.20
Non-GAAP tangible book value per share		$           28.86		$            29.57		$           31.72

1	Fair value at the acquisition date of March 26, 2022

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, 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)		6/30/2022		3/31/2022		% Change		6/30/2021
Assets
Cash and cash equivalents		$           444,151		$           548,019		(19) %		$           393,203
Interest-bearing deposits in banks		349		349		—		349
Investment securities available for sale, at fair value		480,007		415,260		16		285,185
Investment securities held to maturity		2,086		2,094		—		2,118
Mortgage loans held for sale		1,444		4,187		(66)		3,752
Loans, net of unearned income		2,224,655		2,157,969		3		1,918,488
Allowance for loan losses		(26,020)		(26,731)		(3)		(26,687)
Total loans, net of allowance for loan losses		2,198,635		2,131,238		3		1,891,801
Office properties and equipment, net		43,979		43,929		—		44,232
Cash surrender value of bank-owned life insurance		40,788		40,575		1		40,781
Goodwill and core deposit intangibles		88,309		87,569		1		62,520
Accrued interest receivable and other assets		62,468		59,008		6		40,815
Total Assets		$        3,362,216		$        3,332,228		1		$        2,764,756
Liabilities
Deposits		$        2,920,376		$        2,941,179		(1) %		$        2,370,764
Other Borrowings		60,539		5,539		993		5,539
Federal Home Loan Bank advances		25,307		25,671		(1)		27,502
Accrued interest payable and other liabilities		26,870		22,335		20		23,139
Total Liabilities		3,033,092		2,994,724		1		2,426,944
Shareholders' Equity
Common stock		84		85		(1) %		87
Additional paid-in capital		164,177		164,830		—		165,296
Common stock acquired by benefit plans		(2,240)		(2,332)		4		(2,604)
Retained earnings		191,114		188,386		1		171,644
Accumulated other comprehensive (loss) income		(24,011)		(13,465)		(78)		3,389
Total Shareholders' Equity		329,124		337,504		(2)		337,812
Total Liabilities and Shareholders' Equity		$        3,362,216		$        3,332,228		1		$        2,764,756

 

HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
		Quarter Ended
(dollars in thousands, except per share data)		6/30/2022		3/31/2022		% Change		6/30/2021		% Change
Interest Income
Loans, including fees		$           27,304		$           22,671		20 %		$           24,500		11 %
Investment securities		2,338		1,618		44		1,130		107
Other investments and deposits		863		277		212		133		549
Total interest income		30,505		24,566		24		25,763		18
Interest Expense
Deposits		1,103		893		24 %		1,480		(25) %
Other borrowings		54		53		2		53		2
Federal Home Loan Bank advances		107		109		(2)		120		(11)
Total interest expense		1,264		1,055		20		1,653		(24)
Net interest income		29,241		23,511		24		24,110		21
Provision (reversal) for loan losses		591		3,215		(82)		(3,425)		117
Net interest income after provision (reversal) for loan losses		28,650		20,296		41		27,535		4
Noninterest Income
Service fees and charges		1,257		1,165		8 %		1,146		10 %
Bank card fees		1,636		1,454		13		1,591		3
Gain on sale of loans, net		264		299		(12)		559		(53)
Income from bank-owned life insurance		213		214		—		221		(4)
(Loss) gain on sale of assets, net		(6)		5		(220)		(457)		99
Other income		322		249		29		234		38
Total noninterest income		3,686		3,386		9		3,294		12
Noninterest Expense
Compensation and benefits		12,583		10,159		24 %		9,687		30 %
Occupancy		2,354		1,803		31		1,733		36
Marketing and advertising		648		407		59		268		142
Data processing and communication		2,533		2,195		15		2,159		17
Professional fees		475		542		(12)		217		119
Forms, printing and supplies		253		146		73		163		55
Franchise and shares tax		391		391		—		359		9
Regulatory fees		698		446		57		306		128
Foreclosed assets, net		(10)		402		(102)		101		(110)
Amortization of acquisition intangible		454		252		80		293		55
Provision for credit losses on unfunded commitments		—		302		(100)		375		(100)
Other expenses		1,386		1,195		16		907		53
Total noninterest expense		21,765		18,240		19		16,568		31
Income before income tax expense		10,571		5,442		94		14,261		(26)
Income tax expense		2,110		1,041		103		2,865		(26)
Net income		$              8,461		$              4,401		92		$           11,396		(26)
Earnings per share - basic		$                1.04		$                0.53		96 %		$                1.35		(23) %
Earnings per share - diluted		$                1.03		$                0.53		94 %		$                1.34		(23) %
Cash dividends declared per common share		$                0.23		$                0.23		— %		$                0.23		— %

 

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
(Unaudited)
		Quarter Ended
(dollars in thousands, except per share data)		6/30/2022		3/31/2022		% Change		6/30/2021		% Change
EARNINGS DATA
Total interest income		$        30,505		$        24,566		24 %		$        25,763		18 %
Total interest expense		1,264		1,055		20		1,653		(24)
Net interest income		29,241		23,511		24		24,110		21
(Reversal) provision for loan losses		591		3,215		(82)		(3,425)		117
Total noninterest income		3,686		3,386		9		3,294		12
Total noninterest expense		21,765		18,240		19		16,568		31
Income tax expense		2,110		1,041		103		2,865		(26)
Net income		$          8,461		$          4,401		92		$        11,396		(26)
AVERAGE BALANCE SHEET DATA
Total assets		$  3,295,196		$  2,977,559		11 %		$  2,741,801		20 %
Total interest-earning assets		3,088,839		2,783,614		11		2,554,785		21
Total loans		2,190,721		1,862,616		18		1,963,935		12
PPP loans		15,463		31,326		(51)		228,114		(93)
Total interest-bearing deposits		1,990,485		1,779,832		12		1,656,732		20
Total interest-bearing liabilities		2,022,491		1,811,166		12		1,689,970		20
Total deposits		2,906,568		2,576,378		13		2,355,315		23
Total shareholders' equity		332,640		351,337		(5)		334,092		—
PER SHARE DATA
Earnings per share - basic		$            1.04		$            0.53		96 %		$            1.35		(23) %
Earnings per share - diluted		1.03		0.53		94		1.34		(23)
Book value at period end		39.44		39.93		(1)		38.92		1
Tangible book value at period end		28.86		29.57		(2)		31.72		(9)
Shares outstanding at period end		8,344,095		8,453,014		(1)		8,678,686		(4)
Weighted average shares outstanding
Basic		8,129,340		8,270,209		(2) %		8,448,777		(4) %
Diluted		8,185,595		8,336,561		(2)		8,499,103		(4)
SELECTED RATIOS (1)
Return on average assets		1.03 %		0.60 %		72 %		1.67 %		(38) %
Return on average equity		10.20		5.08		101		13.68		(25)
Common equity ratio		9.79		10.13		(3)		12.22		(20)
Efficiency ratio (2)		66.10		67.81		(3)		60.46		9
Average equity to average assets		10.09		11.80		(14)		12.19		(17)
Tier 1 leverage capital ratio (3)		9.30		8.67		7		9.89		(6)
Total risk-based capital ratio (3)		13.74		12.28		12		16.07		(14)
Net interest margin (4)		3.76		3.39		11		3.75		—
SELECTED NON-GAAP RATIOS (1)
Tangible common equity ratio (5)		7.36 %		7.70 %		(4) %		10.19 %		(28) %
Return on average tangible common equity (6)		14.43		6.47		123		17.18		(16)

(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)
		6/30/2022						3/31/2022						6/30/2021
(dollars in thousands)		Originated		Acquired		Total		Originated		Acquired		Total		Originated		Acquired		Total
CREDIT QUALITY (1)
Nonaccrual loans(2)		$           5,332		$        13,165		$     18,497		$           5,515		$        15,598		$     21,113		$           8,279		$           5,693		$     13,972
Accruing loans 90 days or more past due		8		—		8		—		—		—		4		—		4
Total nonperforming loans		5,340		13,165		18,505		5,515		15,598		21,113		8,283		5,693		13,976
Foreclosed assets and ORE		—		277		277		536		729		1,265		724		389		1,113
Total nonperforming assets		5,340		13,442		18,782		6,051		16,327		22,378		9,007		6,082		15,089
Performing troubled debt restructurings		3,939		1,063		5,002		3,797		1,100		4,897		4,117		1,103		5,220
Total nonperforming assets and troubled debt restructurings		$           9,279		$        14,505		$     23,784		$           9,848		$        17,427		$     27,275		$        13,124		$           7,185		$     20,309
Nonperforming assets to total assets						0.56 %						0.67 %						0.55 %
Nonperforming loans to total assets						0.55						0.63						0.51
Nonperforming loans to total loans						0.83						0.98						0.73

(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 $5.3 million, $3.6 million and $4.1 million at June 30, 2022, March 31, 2022 and June 30, 2021, respectively. Acquired restructured loans placed on nonaccrual totaled $2.8 million, $3.0 million and $3.5 million at June 30, 2022, March 31, 2022 and June 30, 2021, respectively.

 

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION - CONTINUED
(Unaudited)
		6/30/2022						3/31/2022						6/30/2021
		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		$           2,158		$                —		$       2,158		$           2,056		$                —		$       2,056		$           2,397		$                —		$       2,397
Home equity loans and lines		491		—		491		539		—		539		582		—		582
Commercial real estate		12,068		1,193		13,261		12,878		2,324		15,202		15,219		218		15,437
Construction and land		4,689		—		4,689		4,112		—		4,112		3,585		—		3,585
Multi-family residential		526		—		526		554		—		554		745		—		745
Commercial and industrial		3,654		591		4,245		3,200		440		3,640		2,790		478		3,268
Consumer		650		—		650		628		—		628		673		—		673
Total allowance for credit losses		$        24,236		$           1,784		$     26,020		$        23,967		$           2,764		$     26,731		$        25,991		$              696		$     26,687
Unfunded lending commitments(3)		2,117		—		2,117		2,117		—		2,117		1,800		—		1,800
Total allowance for credit losses		$        26,353		$           1,784		$     28,137		$        26,084		$           2,764		$     28,848		$        27,791		$              696		$     28,487
Allowance for loan losses to nonperforming assets						138.54 %						119.45 %						176.86 %
Allowance for loan losses to nonperforming loans						140.61 %						126.61 %						190.95 %
Allowance for loan losses to total loans						1.17 %						1.24 %						1.39 %
Allowance for credit losses to total loans						1.26 %						1.34 %						1.48 %
Year-to-date loan charge-offs						$          844						$          316						$       1,559
Year-to-date loan recoveries						554						465						411
Year-to-date net loan (charge-offs) recoveries						$          290						$         (149)						$       1,148
Annualized YTD net loan (charge-offs) recoveries to average loans						0.03 %						(0.03) %						0.12 %

(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 were Home Bancorp's earnings results for Q2 2022?

Home Bancorp reported net income of $8.5 million, or $1.03 per diluted share, for Q2 2022.

How did total loans perform in Q2 2022 for HBCP?

Total loans increased by 3% in Q2 2022, totaling $2.2 billion.

What is the net interest margin reported by HBCP?

The net interest margin for Q2 2022 rose to 3.76%.

Did HBCP declare a dividend in Q2 2022?

Yes, HBCP declared a quarterly cash dividend of $0.23 per share.