EX-99.1 2 dex991.htm PRESS RELEASE

Press Release

Exhibit 99.1

For further information contact:

John W. Bordelon, President and CEO

(337) 237-1960

Release Date:		April 29, 2009
		For Immediate Release

HOME BANCORP ANNOUNCES 2009 FIRST QUARTER RESULTS

Lafayette, Louisiana – Home Bancorp, Inc. (Nasdaq: “HBCP”) (the “Company”), the parent company for Home Bank (www.home24bank.com), a Federally chartered savings bank headquartered in Lafayette, Louisiana (the “Bank”), announced net income of $1.7 million for the first quarter of 2009, an increase of $704,000, or 69%, compared to the first quarter of 2008 and an increase of $2.5 million, or 316%, compared to the fourth quarter of 2008. Diluted earnings per share were $0.21 for the first quarter of 2009, an increase of 310% from the $0.10 loss per share reported for the fourth quarter of 2008.

The Company completed its initial public stock offering (“IPO”) on October 2, 2008 and began trading on the Nasdaq Global Market on October 3, 2008. Therefore, no shares were outstanding in the first quarter of 2008.

“We are incredibly pleased to report record quarterly earnings, especially in light of the current economic environment,” stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. “Although South Louisiana is not immune to the economic challenges facing our nation, our markets continue to outperform most of the U.S. Our bankers continue to have success gaining new customers seeking our quality of service.”

“Core deposit growth was exceptional during the quarter,” added Mr. Bordelon. “We are also excited with the continued change in the mix of our loan portfolio.”

Loans and Credit Quality

Loans totaled $336.4 million at March 31, 2009, an increase of $28.3 million, or 9%, from March 31, 2008, and an increase of $822,000, or 0.2%, from December 31, 2008. While net loans were essentially unchanged compared to the previous quarter, the change in the Company’s loan mix was favorable as paydowns on 1-4 family mortgage loans were offset by commercial loan growth. Commercial loans (including commercial real estate, construction and land, multi-family residential and other commercial loans) increased $4.9 million, or 3%, during the first quarter of 2009.

The following table sets forth the composition of the Company’s loan portfolio as of the dates indicated.

		March 31, 2009			December 31, 2008			Increase/(Decrease)
(dollars in thousands)								Amount				Percent
Real estate loans:
One- to four-family first mortgage		$	133,720		$	138,173		$	(4,453	)		(3	)%
Home equity loans and lines			22,793			23,127			(334	)		(1	)
Commercial real estate			86,388			84,096			2,292			3
Construction and land			37,203			35,399			1,804			5
Multi-family residential			6,481			7,142			(661	)		(9	)
Total real estate loans			286,585			287,937			(1,352	)		(1	)
Other loans:
Commercial			35,928			34,434			1,494			4
Consumer			13,877			13,197			680			5
Total other loans			49,805			47,631			2,174			5
Total loans		$	336,390		$	335,568		$	822			—	%

The Company recorded a $174,000 provision for loan losses during the first quarter of 2009 compared to a reversal of $30,000 during the first quarter of 2008 and a $298,000 provision for the fourth quarter of 2008. Net loan recoveries for the first quarter of 2009 were $1,000 compared to net charge-offs of $1,000 and $82,000 for the first and fourth quarters of 2008, respectively. Non-performing assets totaled $2.5 million, or 0.47%, of total assets at March 31, 2009, compared to $1.4 million and $1.5 million at March 31, 2008 and December 31, 2008, respectively. The increase in nonperforming assets during the first quarter of 2009 relates to three single family first mortgage loans which were placed on nonaccrual during the quarter. The Company does not anticipate any principal loss on these three loans.

As of March 31, 2009, the allowance for loan losses as a percentage of total loans was 0.83%, compared to 0.74% at March 31, 2008 and 0.78% at December 31, 2008.

Investment Securities Portfolio

The Company’s investment securities portfolio totaled $116.2 million at March 31, 2009, an increase of $49.7 million, or 75%, from March 31, 2008, and a decrease of $2.1 million, or 2%, from December 31, 2008. The increase from March 31, 2008 was the result of the Company’s investment of $87.2 million in net IPO proceeds in the fourth quarter of 2008. At March 31, 2009, the Company had an unrealized loss position on its investment securities portfolio of $7.2 million compared to an unrealized gain of $1.5 million and an unrealized loss of $8.0 million at March 31, 2008 and December 31, 2008, respectively. The unrealized loss relates primarily to the Company’s non-agency mortgage-backed securities holdings, which amounted to $51.7 million, or 10% of total assets, at March 31, 2009. No charge for the other-than-temporary impairment (“OTTI”) of investment securities was recorded during the first quarter of 2009, compared to a $2.8 million charge during the fourth quarter of 2008.

The following table summarizes the Company’s non-agency mortgage-backed securities portfolio as of March 31, 2009.

Collateral		# of Securities		Amortized Cost			Unrealized Gain/(Loss)				S&P Rating
Prime		16		$	39,222,000		$	(6,723,000	)		AAA
Prime		1			2,336,000			(483,000	)		A
Prime		1			2,128,000			(31,000	)		Not rated (1)
Prime		1			1,027,000			(68,000	)		BBB
Prime		1			1,927,000			(418,000	)		BB
Prime		1			586,000			21,000			B
Prime		1			1,142,000			(651,000	)		CCC
Alt-A		1			1,422,000			47,000			AAA
Alt-A		1			867,000			(100,000	)		B
Alt-A		1			1,005,000			4,000			Not rated (2)
Total non-agency mortgage- backed securities		25		$	51,662,000		$	(8,402,000	)

⁽¹⁾ Rated “Aaa” by Moody’s.

⁽²⁾ Rated “Caa2” by Moody’s and “CCC” by Fitch.

The Company holds no Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) preferred stock, equity securities, corporate bonds, trust preferred securities, hedge fund investments, collateralized debt obligations or structured investment vehicles.

Cash Invested at Other ATM Locations

Over the past several years, Home Bank has entered into contracts with various counterparties to provide cash for ATMs at approximately 1,400 locations throughout the United States. Cash invested at other ATM locations totaled $24.3 million at March 31, 2009, an increase of $6.1 million, or 33%, from March 31, 2008, and an increase of $84,000, or 0.3%, from December 31, 2008. The Bank’s contracts with its ATM counterparties expire during the second quarter of 2009. The Bank does not intend to renew the contracts; thus, we expect to receive all cash invested at other ATM locations back from the counterparties in 2009.

Deposits

Deposits totaled $375.1 million at March 31, 2009, an increase of $23.0 million, or 7%, from March 31, 2008, and an increase of $21.0 million, or 6%, from December 31, 2008. The Company’s continued focus is on growing its core deposit base (i.e., checking, savings and money market accounts), which increased $13.4 million, or 7%, during the first quarter of 2009.

The following table sets forth the composition of the Company’s deposits at the dates indicated.

		March 31, 2009			December 31, 2008			Increase(Decrease)
(dollars in thousands)								Amount			Percent
Demand deposit		$	71,181		$	67,047		$	4,134		6	%
Savings			21,812			19,741			2,071		10
Money market			74,624			68,850			5,774		8
NOW			43,643			42,200			1,443		3
Certificates of deposit			163,882			156,307			7,575		5
Total deposits		$	375,142		$	354,145		$	20,997		6	%

Net Interest Income

Net interest income for the first quarter of 2009 totaled $5.9 million, an increase of $1.9 million, or 47%, compared to the first quarter of 2008, and an increase of $272,000, or 5%, compared to the fourth quarter of 2008. The Company’s net interest margin was 4.72% for the first quarter of 2009, 75 basis points higher than the same quarter a year ago and 14 basis points higher than the fourth quarter of 2008.

Average interest-earning assets totaled $497.2 million for the quarter ended March 31, 2009, an increase of 24% and 2% compared to the quarters ended March 31, 2008 and December 31, 2008, respectively. The average yield on interest-earning assets for the quarter ended March 31, 2009 was 6.06%, a decrease of 45 basis points and an increase of five basis points compared to the quarters ended March 31, 2008 and December 31, 2008, respectively.

Average interest-bearing liabilities totaled $327.0 million for the quarter ended March 31, 2009, an increase of 1% and 6% compared to the quarters ended March 31, 2008 and December 31, 2008, respectively. The average rate paid on interest-bearing liabilities for the quarter ended March 31, 2009 was 2.04%, a decrease of 111 and 21 basis points compared to the quarters ended March 31, 2008 and December 31, 2008, respectively.

Noninterest Income

Noninterest income for the first quarter of 2009 was $959,000, an increase of $193,000, or 25%, compared to the same quarter a year ago. Excluding the impact of OTTI charges of $2.8 million in the fourth quarter of 2008, first quarter 2009 noninterest income increased $139,000, or 17%, compared to the fourth quarter of 2008. The increases were primarily the result of increased gains on the sale of mortgage loans and higher levels of service fees and charges and bank card fees.

Noninterest Expense

Noninterest expense for the first quarter of 2009 totaled $4.0 million, an increase of $771,000, or 24%, compared to the same quarter a year ago. Excluding the impact of ATM losses of $867,000 in the fourth quarter of 2008, first quarter 2009 noninterest expense increased $152,000, or 4%, compared to the fourth quarter of 2008. Noninterest expense levels have increased over the past year due primarily to increased compensation and benefits expense resulting from our Baton Rouge expansion, where we opened two full-service banking offices during the second half of 2008, as well as expense related to our employee stock ownership plan (“ESOP”), higher professional and other fees due to the increased cost of operating as a public company and the Louisiana bank shares tax. The Company was not required to pay the Louisiana bank shares tax prior to Home Bank’s mutual to stock conversion in October 2008.

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 the impact of charges for the other-than-temporary impairment of investment securities and ATM losses. Management believes the presentation of this non-GAAP financial information provides useful information that is essential to a proper understanding of the Company’s core operating results. This non-GAAP financial information should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial information presented by other companies.

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, 2009, describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for losses on loans, 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

		March 31, 2009				March 31, 2008				% Change			December 31, 2008				% Change
Assets
Cash and cash equivalents		$	25,592,391			$	13,168,514			94	%		$	20,150,248			27	%
Interest-bearing deposits in banks			1,388,000				2,970,000			(53	)			1,685,000			(18	)
Cash invested at other ATM locations			24,328,114				18,261,597			33				24,243,780			—
Securities available for sale, at fair value			112,296,397				62,052,234			81				114,235,261			(2	)
Securities held to maturity			3,895,918				4,481,269			(13	)			4,089,466			(5	)
Mortgage loans held for sale			1,590,600				1,639,400			(3	)			996,600			60
Loans, net of unearned income			336,389,803				308,099,102			9				335,568,071			—
Allowance for loan losses			(2,780,698	)			(2,283,796	)		(22	)			(2,605,889	)		(7	)
Loans, net			333,609,105				305,815,306			9				332,962,182			—
Office properties and equipment, net			15,227,422				11,656,909			31				15,325,997			(1	)
Cash surrender value of bank-owned life insurance			5,334,033				5,070,551			5				5,268,817			1
Accrued interest receivable and other assets			9,633,416				4,937,039			95				9,439,637			2
Total Assets		$	532,895,396			$	430,052,819			24	%		$	528,396,988			1	%
Liabilities
Deposits		$	375,142,247			$	352,128,470			7	%		$	354,145,105			6	%
Federal Home Loan Bank advances			24,207,021				23,370,241			4				44,420,795			(46	)
Accrued interest payable and other liabilities			4,246,421				3,183,370			33				2,868,362			48
Total Liabilities			403,595,689				378,682,081			7				401,434,262			1
Shareholders’ Equity
Common stock		$	89,270			$	—			—	%		$	89,270			—	%
Additional paid-in capital			87,165,161				—			—				87,182,281			—
Unearned ESOP shares			(6,962,960	)			—			—				(7,052,230	)		1
Retained earnings			53,778,603				50,358,559			7				52,055,071			3
Accumulated other comprehensive income (loss)			(4,770,367	)			1,012,179			(571	)			(5,311,666	)		10
Total Shareholders’ Equity			129,299,707				51,370,738			152				126,962,726			2
Total Liabilities and Shareholders’ Equity		$	532,895,396			$	430,052,819			24	%		$	528,396,988			1	%

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME

		For The Three Months Ended March 31,							% Change			For The Three Months Ended December 31, 2008				% Change
								2009							2008
Interest Income
Loans, including fees		$	5,521,750		$	5,407,337			2	%		$	5,534,213			—	%
Investment securities			1,702,796			785,409			117				1,478,963			15
Other investments and deposits			312,410			340,452			(8	)			317,715			(2	)
Total interest income			7,536,956			6,533,198			15				7,330,891			3
Interest Expense
Deposits			1,427,272			2,387,019			(40	)%			1,575,505			(9	)%
Federal Home Loan Bank advances			243,037			161,619			50				160,495			51
Total interest expense			1,670,309			2,548,638			(34	)			1,736,000			(4	)
Net interest income			5,866,647			3,984,560			47				5,594,891			5
Provision for (reversal of) loan losses			173,662			(29,511	)		(688	)			297,775			(42	)
Net interest income after provision for (reversal of) loan losses			5,692,985			4,014,071			42				5,297,116			7
Noninterest Income
Service fees and charges			454,706			406,253			12	%			412,763			10	%
Bank card fees			260,724			207,481			26				250,911			4
Gain on sale of loans, net			140,387			69,879			101				61,903			127
Income from bank-owned life insurance			65,216			63,936			2				67,345			(3	)
Other-than-temporary impairment of securities			—			—			—				(2,832,920	)		100
Other income			38,072			18,237			109				26,694			43
Total noninterest income			959,105			765,786			25				(2,013,304	)		148
Noninterest Expense
Compensation and benefits			2,321,148			2,092,501			11	%			2,359,437			(2	)%
Occupancy			316,372			287,727			10				320,589			(1	)
Marketing and advertising			167,653			158,050			6				198,147			(15	)
Data processing and communication			345,266			337,760			2				352,752			(2	)
Professional fees			213,572			62,384			242				175,208			22
ATM losses			—			—			—				867,389			(100	)
Franchise and shares tax			226,250			—			—				—			—
Other expenses			416,821			297,373			40				448,474			(7	)
Total noninterest expense			4,007,082			3,235,795			24				4,721,996			(15	)
Income (loss) before income tax expense (benefit)			2,645,008			1,544,062			71				(1,438,184	)		284
Income tax expense (benefit)			921,476			524,981			76				(639,089	)		244
Net income (loss)		$	1,723,532		$	1,019,081			69	%		$	(799,095	)		316	%
Earnings (loss) per share - basic		$	0.21			N/A			N/A			$	(0.10	)		310	%
Earnings (loss) per share - diluted		$	0.21			N/A			N/A			$	(0.10	)		310	%
NON-GAAP PRO FORMA NET INCOME
Reported net income (loss)												$	(799,095	)
Add: OTTI charge (after tax)													1,869,700
Add: ATM losses (after tax)													572,200
Non-GAAP net income												$	1,642,805

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION

		For The Three Months Ended March 31,								% Change			For The Three Months Ended December 31, 2008				% Change
		2009				2008
AVERAGE BALANCE SHEET DATA (dollars in thousands)
Total assets		$	525,560			$	428,939			23	%		$	503,947			4	%
Total earning assets			497,174				401,597			24				488,294			2
Loans			339,528				309,906			10				327,951			4
Interest bearing deposits			290,590				307,445			(5	)			284,154			2
Total deposits			357,472				358,899			—				367,935			(3	)
Total shareholders’ equity			128,865				50,687			154				106,814			21
SELECTED RATIOS (1)
Return on average assets			1.31	%			0.95	%		38	%			(0.63	)		308	%
Return on average total equity			5.35				8.04			(33	)			(2.99	)		279
Efficiency ratio (2)			58.71				68.12			(14	)			131.84			(55	)
Average equity to average assets			24.52				11.82			107				21.20			16
Core capital ratio (3) (4)			19.19				11.75			63				19.10			—
Net interest margin (5)			4.72				3.97			19				4.58			3
		March 31, 2009				March 31, 2008				% Change			December 31, 2008				% Change
CREDIT QUALITY (dollars in thousands) (3) (6)
Nonaccrual loans		$	2,489			$	1,338			86	%		$	1,427			74	%
Accruing loans past due 90 days and over			—				—			—				—			—
Total nonperforming loans			2,489				1,338			86				1,427			74
Other real estate owned			37				60			(38	)			37			1
Total nonperforming assets		$	2,526			$	1,398			81			$	1,464			73
Nonperforming assets to total assets			0.47	%			0.33	%		42	%			0.28	%		68	%
Nonperforming loans to total assets			0.47				0.31			52				0.27			74
Nonperforming loans to total loans			0.74				0.43			72				0.43			72
Allowance for loan losses to nonperforming assets			110.1				163.5			(33	)			178.0			(38	)
Allowance for loan losses to nonperforming loans			111.7				170.7			(35	)			182.6			(39	)
Allowance for loan losses to total loans			0.83				0.74			12				0.78			6
Year-to-date loan charge-offs		$	2			$	26			(92	)%		$	212			(99	)%
Year-to-date loan recoveries			3				25			(88	)			45			(93	)
Year-to-date net loan charge-offs			(1	)			1			(200	)			167			(101	)
Annualized YTD net loan charge-offs to total loans			—	% (7)			—	% (7)		—	%			0.05			(100	)%

⁽¹⁾ With the exception of end-of-period ratios, all ratios are based on average monthly 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⁾ Asset quality and capital ratios are end of period ratios.

⁽⁴⁾ Capital ratios are Bank only.

⁽⁵⁾ Net interest margin represents net interest income as a percentage of average interest-earning assets.

⁽⁶⁾ Nonperforming loans consist of nonaccruing loans and loans 90 days or more past due. Nonperforming assets consist of nonperforming loans and repossessed acceptance of title in-lieu of foreclosure.

⁽⁷⁾ Ratio is displayed as zero since calculated value is too low to be reported.