HOME BANCORP, INC. ANNOUNCES 2023 THIRD QUARTER RESULTS, NEW SHARE REPURCHASE PLAN AND DECLARES QUARTERLY DIVIDEND

Rhea-AI Summary

Home Bancorp reports financial results for Q3 2023, with net income of $9.8 million and loan growth of 2.3%.

Positive

• Home Bancorp reports net income of $9.8 million for Q3 2023, maintaining strong credit quality and above-average profitability. Loans grew by $58.3 million, or 2.3%, from the previous quarter. Deposits also increased by $45.8 million, or 2%. The net interest margin decreased from 3.94% to 3.75%. Nonperforming assets decreased by $86,000, or 1%. The allowance for loan losses increased to $31.1 million, or 1.21% of total loans.

Negative

• The net interest income decreased by $797,000, or 3%, from the previous quarter. The Company recorded a provision of $351,000 to the allowance for loan losses. The investment securities portfolio had a net unrealized loss of $63.4 million. The average rate on interest-bearing deposits increased by 54 basis points.

LAFAYETTE, La., Oct. 18, 2023 /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 2023. For the quarter, the Company reported net income of $9.8 million, or $1.22 per diluted common share ("diluted EPS"), down $27,000 from $9.8 million, or $1.21 diluted EPS, for the second quarter of 2023.

"Home Bank has delivered exceptional results during this cycle of rapidly increasing interest rates and the third quarter was a continuation of that success. We produced above average profitability metrics, grew both loans and deposits, and maintained strong credit quality." said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "Strong customer relationships, built over years, have allowed us to retain deposits while still maintaining discipline on interest expense. We are confident that our long history and culture of relationship banking have positioned Home Bank to continue to thrive both in the near and long term."

 Third Quarter 2023 Highlights

• Loans totaled $2.6 billion at September 30, 2023, up $58.3 million, or 2.3% (9% on an annualized basis) from June 30, 2023.
• Deposits totaled $2.6 billion at September 30, 2023, up  $45.8 million, or 2%, from June 30, 2023.
• Net interest income totaled $29.5 million, down $797,000, or 3% from the prior quarter.
• The net interest margin ("NIM") was 3.75% in the third quarter of 2023 compared to 3.94% in the second quarter of 2023.
• The Company recorded a $351,000 provision to the allowance for loan losses primarily due to loan growth.
• Nonperforming assets totaled $12.3 million, or 0.37% of total assets compared to $12.4 million, or 0.38% of total assets, at June 30, 2023.

Loans

Loans totaled $2.6 billion at September 30, 2023, up $58.3 million, or 2%, from June 30, 2023. The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from June 30, 2023 through September 30, 2023. 

(dollars in thousands)		9/30/2023		6/30/2023		Increase (Decrease)
Real estate loans:
One- to four-family first mortgage		$           432,092		$           419,091		$     13,001		3 %
Home equity loans and lines		69,350		66,932		2,418		4
Commercial real estate		1,178,111		1,176,976		1,135		—
Construction and land		342,711		327,488		15,223		5
Multi-family residential		106,411		103,951		2,460		2
Total real estate loans		2,128,675		2,094,438		34,237		2
Other loans:
Commercial and industrial		407,189		382,292		24,897		7
Consumer		33,230		34,029		(799)		(2)
Total other loans		440,419		416,321		24,098		6
Total loans		$        2,569,094		$        2,510,759		$     58,335		2 %

 

The average loan yield was 5.95% for the third quarter of 2023, up 13 basis points, from the second quarter of 2023. Loan growth during the third quarter of 2023 was across all loan types with the exception of consumer loans. Loans grew in the third quarter of 2023 across most of our markets with approximately 35% of the growth attributable to the Houston market.

Credit Quality and Allowance for Credit Losses

Nonperforming assets ("NPAs") totaled $12.3 million, or 0.37% of total assets, at September 30, 2023, down $86,000, or 1%, from $12.4 million, or 0.38% of total assets, at June 30, 2023. During the third quarter of 2023, the Company recorded net loan recoveries of $132,000, compared to net loan recoveries of $10,000 during the second quarter of 2023.

The Company provisioned $351,000 to the allowance for loan losses in the third quarter of 2023. At September 30, 2023, the allowance for loan losses totaled $31.1 million, or 1.21% of total loans, compared to $30.6 million, or 1.22% of total loans, at June 30, 2023. Provisions to the allowance for loan losses are based upon, among other factors, our estimation of current expected losses in our loan portfolio, which we evaluate on a quarterly basis. Changes in expected losses consider various factors including the changing economic activity, potential mitigating effects of governmental stimulus, borrower specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.

The following tables present the Company's loan portfolio by credit quality classification as of September 30, 2023 and June 30, 2023.

	September 30, 2023
(dollars in thousands)		Pass		Special Mention		Substandard		Total
One- to four-family first mortgage		$         429,011		$                 870		$              2,211		$         432,092
Home equity loans and lines		69,225		—		125		69,350
Commercial real estate		1,162,095		330		15,686		1,178,111
Construction and land		330,512		5,388		6,811		342,711
Multi-family residential		102,907		—		3,504		106,411
Commercial and industrial		402,252		2,458		2,479		407,189
Consumer		33,000		—		230		33,230
Total		$      2,529,002		$              9,046		$           31,046		$      2,569,094
	June 30, 2023
(dollars in thousands)		Pass		Special Mention		Substandard		Total
One- to four-family first mortgage		$         415,162		$                 872		$              3,057		$         419,091
Home equity loans and lines		66,809		—		123		66,932
Commercial real estate		1,160,405		335		16,236		1,176,976
Construction and land		319,738		5,410		2,340		327,488
Multi-family residential		100,521		—		3,430		103,951
Commercial and industrial		377,529		2,894		1,869		382,292
Consumer		33,832		—		197		34,029
Total		$      2,473,996		$              9,511		$           27,252		$      2,510,759

 

Investment Securities

The Company's investment securities portfolio totaled $428.1 million at September 30, 2023, a decrease of $22.4 million, or 5.0%, from June 30, 2023. At September 30, 2023, the Company had a net unrealized loss position on its investment securities of $63.4 million, compared to a net unrealized loss of $53.2 million at June 30, 2023. The Company's investment securities portfolio had an effective duration of 4.5 years at September 30, 2023 and June 30, 2023.

The following table summarizes the composition of the Company's investment securities portfolio at September 30, 2023.

(dollars in thousands)		Amortized Cost		Fair Value
Available for sale:
U.S. agency mortgage-backed		$       324,459		$       280,171
Collateralized mortgage obligations		84,009		78,279
Municipal bonds		55,705		45,037
U.S. government agency		19,278		17,444
Corporate bonds		6,982		6,088
Total available for sale		$       490,433		$       427,019
Held to maturity:
Municipal bonds		$           1,065		$           1,052
Total held to maturity		$           1,065		$           1,052

 

Approximately 30% of the investment securities portfolio was pledged as of September 30, 2023. As of September 30, 2023 and June 30, 2023, the Company had $127.9 million and $134.9 million, respectively, of securities pledged to secure public deposits.

Deposits

Total deposits were $2.6 billion at September 30, 2023, up $45.8 million, or 2%, from June 30, 2023. Non-maturity deposits decreased $46.2 million, or 2% during the third quarter of 2023 to $2.0 billion. The following table summarizes the changes in the Company's deposits from June 30, 2023 to September 30, 2023.

(dollars in thousands)		9/30/2023		6/30/2023		Increase (Decrease)
Demand deposits		$           785,448		$           816,555		$            (31,107)		(4) %
Savings		246,402		261,780		(15,378)		(6)
Money market		392,174		363,801		28,373		8
NOW		617,003		645,087		(28,084)		(4)
Certificates of deposit		556,457		464,495		91,962		20
Total deposits		$        2,597,484		$        2,551,718		$             45,766		2 %

 

The average rate on interest-bearing deposits increased 54 basis points from 1.30% for the second quarter of 2023 to 1.84% for the third quarter of 2023. At September 30, 2023, certificates of deposit maturing within the next 12 months totaled $460.6 million.

We obtain most of our deposits from individuals, small businesses and public funds in our market areas. The following table presents our deposits per customer type for the periods indicated.

		September 30, 2023		June 30, 2023
Individuals		52 %		51 %
Small businesses		39		39
Public funds		7		8
Broker		2		2
Total		100 %		100 %

 

The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $755.5 million at September 30, 2023 and $735.4 million at June 30, 2023. Public funds in excess of the FDIC insurance limits are fully collateralized.

Net Interest Income

The net interest margin ("NIM") decreased 19 basis points from 3.94% for the second quarter of 2023 to 3.75% for the third quarter of 2023 primarily due to an increase in the average cost of interest-bearing deposits, which was partially offset with an increase in the average yield on interest-earning assets. The average cost of interest-bearing deposits increased by 54 basis points in the third quarter of 2023 and our cost of deposits increased by $2.6 million, or 47%, in the third quarter of 2023 compared to the second quarter of 2023.  The increase in deposit costs reflects the rise in market rates of interest as well as a migration to interest-bearing deposits from non-interest bearing deposits.

The average loan yield was 5.95% for the third quarter of 2023, up 13 basis points from the second quarter of 2023, primarily reflecting increased rates on variable loans coupled with new loan originations at higher market rates during the period.

Average other interest-earning assets were $54.0 million for the third quarter of 2023, up $1.8 million, or 3%, from the second quarter of 2023 primarily due to a reallocation of certain other interest-earning assets.

Loan accretion income from acquired loans totaled $634,000 for the third quarter of 2023, down $13,000, or 2%, from the second quarter of 2023.

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
		9/30/2023						6/30/2023
(dollars in thousands)		Average Balance		Interest		Average Yield/ Rate		Average Balance		Interest		Average Yield/ Rate
Interest-earning assets:
Loans receivable		$  2,538,218		$       38,490		5.95 %		$  2,491,029		$       36,530		5.82 %
Investment securities (TE)		495,219		2,939		2.39		507,050		2,986		2.37
Other interest-earning assets		54,015		649		4.77		52,256		555		4.26
Total interest-earning assets		$  3,087,452		$       42,078		5.36 %		$  3,050,335		$       40,071		5.22 %
Interest-bearing liabilities:
Deposits:
Savings, checking, and money market		$  1,256,885		$          3,791		1.20 %		$  1,300,245		$          3,023		0.93 %
Certificates of deposit		511,754		4,390		3.40		407,038		2,524		2.49
Total interest-bearing deposits		1,768,639		8,181		1.84		1,707,283		5,547		1.30
Other borrowings		5,539		53		3.80		5,651		55		3.88
Subordinated debt		54,159		845		6.24		54,098		850		6.29
FHLB advances		273,087		3,490		5.01		272,783		3,313		4.81
Total interest-bearing liabilities		$  2,101,424		$       12,569		2.37 %		$  2,039,815		$          9,765		1.91 %
Noninterest-bearing deposits		$       799,534						$       831,517
Net interest spread (TE)						2.99 %						3.31 %
Net interest margin (TE)						3.75 %						3.94 %

 

Noninterest Income

Noninterest income for the third quarter of 2023 totaled $4.4 million, up $951,000, or 28%, from the second quarter of 2023. The increase was related primarily to gains on sale of loans (up $661,000 of which $640,000 was related to the sale of SBA loans during the third quarter of 2023) and bank card fees (up $188,000) for the third quarter of 2023 compared to the second quarter of 2023.

Noninterest Expense

Noninterest expense for the third quarter of 2023 totaled $21.3 million, up $379,000, or 2%, from the second quarter of 2023. The increase was primarily related to data processing and communication expenses (up $364,000) and marketing and advertising expenses (up $196,000), which were partially offset by the absence of provision for credit losses on unfunded commitments (down $151,000) and a reduction in compensation and benefits expense (down $109,00) during the third quarter of 2023.

Capital and Liquidity

At September 30, 2023, shareholders' equity totaled $345.3 million, down $785,000, or less than 1%, compared to $346.1 million at June 30, 2023. The decrease was primarily due to the increase in accumulated other comprehensive loss on available for sale investment securities, shareholder dividends and repurchases of shares of the Company's common stock, which were partially offset by the Company's earnings of $9.8 million during the third quarter of 2023. The market value of the Company's available for sale securities at September 30, 2023 decreased $10.2 million, or 19%, during the third quarter of 2023. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 10.71% and 13.73%, respectively, at September 30, 2023, compared to 10.78% and 14.07%, respectively, at June 30, 2023.

The following table summarizes the Company's primary and secondary sources of liquidity which were available at September 30, 2023.

(dollars in thousands)		September 30, 2023
Cash and cash equivalents		$                              84,520
Unencumbered investment securities, amortized cost		79,015
FHLB advance availability		914,064
Amounts available from unsecured lines of credit		55,000
Federal Reserve bank term funding program		106,140
Federal Reserve discount window availability		500
Total primary and secondary sources of available liquidity		$                         1,239,239

 

Dividend and Share Repurchases

The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.25 per share payable on November 9, 2023, to shareholders of record as of October 30, 2023. 

The Company also announced that the Board of Directors approved a new share repurchase plan (the "2023 Repurchase Plan"). Under the 2023 Repurchase Plan, the Company may purchase up to 405,000 shares, or approximately 5% of the Company's outstanding common stock. Share repurchases under the 2023 Repurchase Plan may commence upon the completion of the Company's 2021 Repurchase Plan. As of September 30, 2023, there were 47,980 shares remaining that may be repurchased under the 2021 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 37,805 shares of its common stock during the third quarter of 2023 at an average price per share of $32.63. An additional 47,980 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 $42.30 and $31.67, respectively, at September 30, 2023.

Conference Call

Executive management will host a conference call to discuss third quarter 2023 results on Thursday, October 19, 2023 at 10:30 a.m. CDT. Analysts, investors and interested parties may attend the conference call by dialing toll free 1.848.488.9160 (US Local/International) or 1.877.550.1858 (US Toll Free). The investor presentation can be accessed the day of the presentation on Home Bancorp, Inc. website at https://home24bank.investorroom.com.

A replay of the conference call and a transcript of the call will be posted to the Investor Relations page of the Company's website, https://home24bank.investorroom.com.

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. 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)		9/30/2023		6/30/2023		9/30/2022
Reported net income		$           9,754		$            9,781		$         10,434
Add: Core deposit intangible amortization, net tax		307		307		358
Non-GAAP tangible income		$         10,061		$          10,088		$         10,792
Total assets		$    3,317,729		$     3,290,153		$    3,167,666
Less: Intangible assets		86,749		87,138		87,839
Non-GAAP tangible assets		$    3,230,980		$     3,203,015		$    3,079,827
Total shareholders' equity		$       345,332		$        346,117		$       316,656
Less: Intangible assets		86,749		87,138		87,839
Non-GAAP tangible shareholders' equity		$       258,583		$        258,979		$       228,817
Return on average equity		11.04 %		11.26 %		12.35 %
Add: Average intangible assets		4.11		4.24		4.99
Non-GAAP return on average tangible common equity		15.15 %		15.50 %		17.34 %
Common equity ratio		10.41 %		10.52 %		10.00 %
Less: Intangible assets		2.41		2.43		2.57
Non-GAAP tangible common equity ratio		8.00 %		8.09 %		7.43 %
Book value per share		$           42.30		$            42.22		$           38.27
Less: Intangible assets		10.63		10.63		10.61
Non-GAAP tangible book value per share		$           31.67		$            31.59		$           27.66

 

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, 2022 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)		9/30/2023		6/30/2023		% Change		9/30/2022
Assets
Cash and cash equivalents		$             84,520		$             96,873		(13) %		$           150,556
Interest-bearing deposits in banks		99		99		—		349
Investment securities available for sale, at fair value		427,019		449,396		(5)		492,758
Investment securities held to maturity		1,065		1,066		—		1,080
Mortgage loans held for sale		467		538		(13)		169
Loans, net of unearned income		2,569,094		2,510,759		2		2,303,279
Allowance for loan losses		(31,123)		(30,639)		2		(27,351)
Total loans, net of allowance for loan losses		2,537,971		2,480,120		2		2,275,928
Office properties and equipment, net		42,402		42,904		(1)		43,685
Cash surrender value of bank-owned life insurance		47,054		46,789		1		46,019
Goodwill and core deposit intangibles		86,749		87,138		—		87,839
Accrued interest receivable and other assets		90,383		85,230		6		69,283
Total Assets		$        3,317,729		$        3,290,153		1		$        3,167,666
Liabilities
Deposits		$        2,597,484		$        2,551,718		2 %		$        2,738,424
Other Borrowings		5,539		5,539		—		5,539
Subordinated debt, net of issuance cost		54,187		54,133		—		53,958
Federal Home Loan Bank advances		283,826		305,297		(7)		24,816
Accrued interest payable and other liabilities		31,361		27,349		15		28,273
Total Liabilities		2,972,397		2,944,036		1		2,851,010
Shareholders' Equity
Common stock		81		82		(1)		83
Additional paid-in capital		165,149		164,945		—		164,024
Common stock acquired by benefit plans		(1,787)		(1,878)		5		(2,150)
Retained earnings		227,649		220,801		3		197,553
Accumulated other comprehensive loss		(45,760)		(37,833)		(21)		(42,854)
Total Shareholders' Equity		345,332		346,117		—		316,656
Total Liabilities and Shareholders' Equity		$        3,317,729		$        3,290,153		1		$        3,167,666

 

HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
		Quarter Ended
(dollars in thousands, except per share data)		9/30/2023		6/30/2023		% Change		9/30/2022		% Change
Interest Income
Loans, including fees		$           38,490		$           36,530		5 %		$           29,859		29 %
Investment securities		2,939		2,986		(2)		2,958		(1)
Other investments and deposits		649		555		17		1,447		(55)
Total interest income		42,078		40,071		5		34,264		23
Interest Expense
Deposits		8,181		5,547		47 %		1,270		544 %
Other borrowings		53		55		(4)		53		—
Subordinated debt expense		845		850		(1)		859		(2)
Federal Home Loan Bank advances		3,490		3,313		5		105		3224
Total interest expense		12,569		9,765		29		2,287		450
Net interest income		29,509		30,306		(3)		31,977		(8)
Provision for loan losses		351		511		(31)		1,696		(79)
Net interest income after provision for loan losses		29,158		29,795		(2)		30,281		(4)
Noninterest Income
Service fees and charges		1,277		1,230		4 %		1,300		(2) %
Bank card fees		1,903		1,715		11		1,623		17
Gain on sale of loans, net		687		26		2542		78		781
Income from bank-owned life insurance		265		260		2		231		15
(Loss) gain on sale of assets, net		—		(3)		100		18		(100)
Other income		267		220		21		224		19
Total noninterest income		4,399		3,448		28		3,474		27
Noninterest Expense
Compensation and benefits		12,492		12,601		(1) %		12,128		3 %
Occupancy		2,410		2,447		(2)		2,297		5
Marketing and advertising		638		442		44		658		(3)
Data processing and communication		2,496		2,132		17		2,284		9
Professional fees		402		459		(12)		331		21
Forms, printing and supplies		195		204		(4)		185		5
Franchise and shares tax		542		541		—		633		(14)
Regulatory fees		511		401		27		467		9
Foreclosed assets, net		99		50		98		101		(2)
Amortization of acquisition intangible		389		389		—		453		(14)
Provision for credit losses on unfunded commitments		—		151		(100)		146		(100)
Other expenses		1,164		1,142		2		1,040		12
Total noninterest expense		21,338		20,959		2		20,723		3
Income before income tax expense		12,219		12,284		(1)		13,032		(6)
Income tax expense		2,465		2,503		(2)		2,598		(5)
Net income		$              9,754		$              9,781		—		$           10,434		(7)
Earnings per share - basic		$                1.22		$                1.22		— %		$                1.29		(5) %
Earnings per share - diluted		$                1.22		$                1.21		1 %		$                1.28		(5) %
Cash dividends declared per common share		$                0.25		$                0.25		— %		$                0.23		9 %

 

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
(Unaudited)
		Quarter Ended
(dollars in thousands, except per share data)		9/30/2023		6/30/2023		% Change		9/30/2022		% Change
EARNINGS DATA
Total interest income		$        42,078		$        40,071		5 %		$        34,264		23 %
Total interest expense		12,569		9,765		29		2,287		450
Net interest income		29,509		30,306		(3)		31,977		(8)
Provision for loan losses		351		511		(31)		1,696		(79)
Total noninterest income		4,399		3,448		28		3,474		27
Total noninterest expense		21,338		20,959		2		20,723		3
Income tax expense		2,465		2,503		(2)		2,598		(5)
Net income		$          9,754		$          9,781		—		$        10,434		(7)
AVERAGE BALANCE SHEET DATA
Total assets		$  3,281,093		$  3,250,190		1 %		$  3,265,907		— %
Total interest-earning assets		3,087,452		3,050,335		1		3,060,273		1
Total loans		2,538,218		2,491,029		2		2,265,846		12
PPP loans		5,869		6,100		(4)		9,431		(38)
Total interest-bearing deposits		1,768,639		1,707,283		4		1,894,275		(7)
Total interest-bearing liabilities		2,101,424		2,039,815		3		1,978,734		6
Total deposits		2,568,173		2,538,800		1		2,818,318		(9)
Total shareholders' equity		350,436		348,414		1		335,053		5
PER SHARE DATA
Earnings per share - basic		$            1.22		$            1.22		— %		$            1.29		(5) %
Earnings per share - diluted		1.22		1.21		1		1.28		(5)
Book value at period end		42.30		42.22		—		38.27		11
Tangible book value at period end		31.67		31.59		—		27.66		14
Shares outstanding at period end		8,163,655		8,197,859		—		8,273,334		(1)
Weighted average shares outstanding
Basic		8,006,226		8,042,434		— %		8,089,246		(1) %
Diluted		8,038,606		8,079,205		(1)		8,138,307		(1)
SELECTED RATIOS (1)
Return on average assets		1.18 %		1.21 %		(2) %		1.27 %		(7) %
Return on average equity		11.04		11.26		(2)		12.35		(11)
Common equity ratio		10.41		10.52		(1)		10.00		4
Efficiency ratio (2)		62.93		62.09		1		58.45		8
Average equity to average assets		10.68		10.72		—		10.26		4
Tier 1 leverage capital ratio (3)		10.71		10.78		(1)		9.76		10
Total risk-based capital ratio (3)		13.73		14.07		(2)		13.65		1
Net interest margin (4)		3.75		3.94		(5)		4.11		(9)
SELECTED NON-GAAP RATIOS (1)
Tangible common equity ratio (5)		8.00 %		8.09 %		(1) %		7.43 %		8 %
Return on average tangible common equity (6)		15.15		15.50		(2)		17.34		(13)

(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)
		9/30/2023						6/30/2023						9/30/2022
(dollars in thousands)		Originated		Acquired		Total		Originated		Acquired		Total		Originated		Acquired		Total
CREDIT QUALITY (1)
Nonaccrual loans(2)		$           8,001		$           3,905		$     11,906		$           6,806		$           5,364		$     12,170		$           4,281		$        12,799		$     17,080
Accruing loans 90 days or more past due		43		—		43		26		—		26		3		—		3
Total nonperforming loans		8,044		3,905		11,949		6,832		5,364		12,196		4,284		12,799		17,083
Foreclosed assets and ORE		221		141		362		121		80		201		14		376		390
Total nonperforming assets		8,265		4,046		12,311		6,953		5,444		12,397		4,298		13,175		17,473
Performing troubled debt restructurings		—		—		—		—		—		—		4,686		879		5,565
Total nonperforming assets and troubled debt restructurings		$           8,265		$           4,046		$     12,311		$           6,953		$           5,444		$     12,397		$           8,984		$        14,054		$     23,038
Nonperforming assets to total assets						0.37 %						0.38 %						0.55 %
Nonperforming loans to total assets						0.36						0.37						0.54
Nonperforming loans to total loans						0.47						0.49						0.74

(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 $3.3 million at September 30, 2022. Acquired restructured loans placed on nonaccrual totaled $3.2 million at September 30, 2022. With the adoption of ASU 2022-02, effective January 1, 2023, TDR accounting has been eliminated.

 

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION - CONTINUED
(Unaudited)
		9/30/2023						6/30/2023						9/30/2022
		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		$           3,320		$                —		$       3,320		$           3,200		$                —		$       3,200		$           2,293		$                32		$       2,325
Home equity loans and lines		742		—		742		707		—		707		500		—		500
Commercial real estate		14,185		230		14,415		14,299		499		14,798		12,504		1,193		13,697
Construction and land		5,123		—		5,123		4,822		—		4,822		4,973		—		4,973
Multi-family residential		523		—		523		512		—		512		498		—		498
Commercial and industrial		6,161		105		6,266		5,734		121		5,855		4,523		188		4,711
Consumer		734		—		734		745		—		745		647		—		647
Total allowance for loan losses		$        30,788		$              335		$     31,123		$        30,019		$              620		$     30,639		$        25,938		$           1,413		$     27,351
Unfunded lending commitments(3)		2,454		—		2,454		2,454		—		2,454		2,263		—		2,263
Total allowance for credit losses		$        33,242		$              335		$     33,577		$        32,473		$              620		$     33,093		$        28,201		$           1,413		$     29,614
Allowance for loan losses to nonperforming assets						252.81 %						247.15 %						156.53 %
Allowance for loan losses to nonperforming loans						260.47 %						251.22 %						160.11 %
Allowance for loan losses to total loans						1.21 %						1.22 %						1.19 %
Allowance for credit losses to total loans						1.31 %						1.32 %						1.29 %
Year-to-date loan charge-offs						$          148						$          137						$       1,260
Year-to-date loan recoveries						296						152						605
Year-to-date net loan recoveries (charge-offs)						$          148						$             15						$        (655)
Annualized YTD net loan recoveries (charge-offs) to average loans						0.01 %						— %						(0.04) %

(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 was Home Bancorp's net income for Q3 2023?

Home Bancorp reported net income of $9.8 million for Q3 2023.

How much did loans grow by in Q3 2023?

Loans grew by $58.3 million, or 2.3%, in Q3 2023.

What was the net interest margin for Q3 2023?

The net interest margin decreased from 3.94% to 3.75% in Q3 2023.

What was the provision to the allowance for loan losses in Q3 2023?

The Company recorded a provision of $351,000 to the allowance for loan losses in Q3 2023.

What was the net unrealized loss on the investment securities portfolio in Q3 2023?

The investment securities portfolio had a net unrealized loss of $63.4 million in Q3 2023.

How much did the average rate on interest-bearing deposits increase by in Q3 2023?

The average rate on interest-bearing deposits increased by 54 basis points in Q3 2023.