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:		July 29, 2009
		For Immediate Release

HOME BANCORP ANNOUNCES 2009 SECOND QUARTER EARNINGS

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 $1.4 million for the second quarter of 2009, an increase of $334,000, or 30%, compared to the second quarter of 2008 and a decrease of $287,000, or 17%, compared to the first quarter of 2009. Diluted earnings per share were $0.18 for the second quarter of 2009, a decrease of 14% from the $0.21 per share reported for the first quarter of 2009. Net income for the first six months of 2009 was $3.2 million, an increase of $1.0 million, or 49%, compared to the first six months of 2008. Second quarter 2009 results include the impact of the FDIC’s special assessment of $132,000 (after tax), or $0.02 per diluted share.

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 six months of 2008.

“We continue to owe our strong results to the hard work of our employees,” stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. “Their dedication to serving our customers produces new customer opportunities daily.”

“Home Bank’s commitment to our customers and strong capital base, which remains among the best in the country, gives the communities we serve confidence we will be there for them even through tough times,” added Mr. Bordelon.

The Company’s common stock was added to the Russell 3000 Index in June 2009. The index measures the performance of the 3,000 largest companies in the United States based on market capitalization.

Loans and Credit Quality

Loans totaled $342.7 million at June 30, 2009, an increase of $27.5 million, or 9%, from June 30, 2008, and an increase of $6.3 million, or 2%, from March 31, 2009. The Company’s loan mix continues to change as commercial loan balances have grown, while 1-4 family mortgage loan balances continue to decrease.

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

(dollars in thousands)		June 30, 2009			December 31, 2008			Increase (Decrease)
								Amount				Percent
Real estate loans:
One- to four-family first mortgage		$	126,156		$	138,173		$	(12,017	)		(9	)%
Home equity loans and lines			23,676			23,127			549			2
Commercial real estate			95,563			84,096			11,467			14
Construction and land			39,868			35,399			4,469			13
Multi-family residential			6,303			7,142			(839	)		(12	)
Total real estate loans			291,566			287,937			3,629			1
Other loans:
Commercial			36,608			34,434			2,174			6
Consumer			14,485			13,197			1,288			10
Total other loans			51,093			47,631			3,462			7
Total loans		$	342,659		$	335,568		$	7,091			2	%

Commercial real estate loan growth during 2009 has primarily been driven by loans on owner-occupied office buildings in the Bank’s market areas. Construction and land loan growth during the year is primarily attributable to loans to builders on pre-sold single-family residential properties in the Bank’s market areas. Non-real-estate commercial loan growth in 2009 relates primarily to equipment and accounts receivable financing provided to relatively small businesses located in south Louisiana.

Net loan charge-offs for the first six months of 2009 were $6,000, compared to $5,000 for the same period in 2008. Non-performing assets totaled $2.4 million, or 0.46%, of total assets at June 30, 2009, compared to $836,000 and $2.5 million at June 30, 2008 and March 31, 2009, respectively. The Company increased its provision for loan losses to $248,000 during the second quarter of 2009, compared to provisions of $99,000 and $174,000 during the second quarter of 2008 and the first quarter of 2009, respectively.

As of June 30, 2009, the allowance for loan losses as a percentage of total loans was 0.88%, compared to 0.75% at June 30, 2008 and 0.83% at March 31, 2009.

Investment Securities Portfolio

The Company’s investment securities portfolio totaled $113.3 million at June 30, 2009, an increase of $44.4 million, or 64%, from June 30, 2008, and a decrease of $2.9 million, or 2%, from March 31, 2009. The increase from June 30, 2008 was the result of the Company’s investment of a portion of the $87.2 million in net IPO proceeds received in the fourth quarter of 2008. At June 30, 2009, the Company had an unrealized loss position on its investment securities portfolio of $4.9 million, compared to unrealized losses of $1.1 million and $7.2 million at June 30, 2008 and March 31, 2009, respectively. The unrealized loss relates primarily to the Company’s non-agency mortgage-backed securities holdings, which amounted to $48.4 million, or 9% of total assets, at June 30, 2009.

The following table summarizes the Company’s non-agency mortgage-backed securities portfolio as of June 30, 2009 (in thousands).

Collateral		Tranche		S&P Rating		# of Securities		Amortized Cost			Unrealized Gain/(Loss)
Prime		Super senior		AAA		5		$	11,904		$	(521	)
Prime		Super senior		Investment grade (1)		1			1,776			(398	)
Prime		Super senior		Below investment grade		1			1,111			(466	)
Prime		Senior		AAA (2)		11			25,571			(3,464	)
Prime		Senior support		Investment grade (1)		3			3,510			(492	)
Prime		Senior support		Below investment grade		1			544			47
Alt-A		Senior		AAA		1			1,130			26
Alt-A		Senior		Below investment grade (3)		1			1,974			(987	)
Alt-A		Senior support		Below investment grade		1			842			(98	)
Total non-agency mortgage-backed securities						25		$	48,362		$	(6,353	)

^{( 1 )} S&P investment-grade ratings below “AAA”.

^{( 2 )} Includes one security with an amortized cost of $2.1 million and an unrealized loss of $32,000 not rated by S&P. This security is rated “Aaa” by Moody’s.

⁽³⁾ This security is not rated by S&P. This security is rated “Caa2” by Moody’s.

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

Home Bank maintains contracts with two counterparties to provide cash for ATMs at approximately 1,300 locations throughout the United States. Cash invested at other ATM locations totaled $25.8 million at June 30, 2009, a decrease of $26,000 from June 30, 2008, and an increase of $1.5 million from March 31, 2009. The Bank’s contracts with its ATM counterparties, which were set to expire during the second quarter of 2009, were extended for approximately 90 days to assist the counterparties in transitioning their business to other financial institutions. The Bank expects to receive all cash invested at other ATM locations back from the counterparties in 2009.

Deposits

Deposits totaled $371.6 million at June 30, 2009, an increase of $15.9 million, or 4%, from June 30, 2008, and a decrease of $3.5 million, or 1%, from March 31, 2009. The Company has continued to focus on growing its core deposit base (i.e., checking, savings and money market accounts), which has increased $11.6 million, or 6%, during the first half of 2009.

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

(dollars in thousands)		June 30, 2009			December 31, 2008			Increase (Decrease)
								Amount				Percent
Demand deposit		$	64,929		$	67,047		$	(2,118	)		(3	)%
Savings			21,694			19,741			1,953			10
Money market			79,997			68,850			11,147			16
NOW			42,857			42,200			657			2
Certificates of deposit			162,154			156,307			5,847			4
Total deposits		$	371,631		$	354,145		$	17,486			5

Net Interest Income

Net interest income for the second quarter of 2009 totaled $6.1 million, an increase of $1.7 million, or 40%, compared to the second quarter of 2008, and an increase of $236,000, or 4%, compared to the first quarter of 2009. The Company’s net interest margin was 4.87% for the second quarter of 2009, 66 basis points higher than the same quarter a year ago and 15 basis points higher than the first quarter of 2009. The increase in the net interest margin is primarily the result of higher average interest-earning assets and reduced funding costs.

Average interest-earning assets totaled $503.0 million for the quarter ended June 30, 2009, representing increases of 21% and 1% from the second quarter of 2008 and the first quarter of 2009, respectively. The average yield on the Company’s interest-earning assets for the quarter ended June 30, 2009 was 6.16%, a decrease of 28 basis points and an increase of 10 basis points compared to the quarters ended June 30, 2008 and March 31, 2009, respectively.

Average interest-bearing liabilities totaled $329.8 million for the quarter ended June 30, 2009, a 1% decrease and a 1% increase compared to the quarters ended June 30, 2008 and March 31, 2009, respectively. The average rate paid on interest-bearing liabilities for the quarter ended June 30, 2009 was 1.98%, a decrease of 81 and six basis points compared to the quarters ended June 30, 2008 and March 31, 2009, respectively.

Noninterest Income

Noninterest income for the second quarter of 2009 was $1.0 million, an increase of $173,000, or 21%, and $47,000, or 5%, compared to the quarters ended June 30, 2008 and March 31, 2009, respectively. 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 second quarter of 2009 totaled $4.6 million, an increase of $1.2 million, or 36%, and $635,000, or 16%, compared to the quarters ended June 30, 2008 and March 31, 2009, respectively. The primary reason for the increase in noninterest expense relates to higher compensation and benefits expense. Compensation and benefits expense has increased primarily due to three factors: 1) the Bank’s expansion into Baton Rouge, where two full-service banking offices were opened during the second half of 2008; 2) the employee stock ownership plan (“ESOP”), which commenced during the fourth quarter of 2008; and 3) award grants under the stock option and recognition and retention plans approved by the Company’s shareholders in May 2009. Award grants were issued mid-quarter under the stock option and recognition and retention plans, resulting in $182,000 of related expense for the second quarter of 2009. Based on grants awarded by the stock option and recognition and retention plans to date, the Company anticipates compensation expense related to these plans of approximately $350,000 in the aggregate per quarter during the

remainder of the five-year vesting period. Other increases in noninterest expense were the result of higher professional and other fees due to the increased cost of operating as a public company, the Louisiana bank shares tax and the FDIC’s special assessment of five basis points assessed on all FDIC-insured depository institutions. In addition, the FDIC also has increased the base insurance premium assessment on deposits.

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, 2008, 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

		June 30, 2009				June 30, 2008				% Change			March 31, 2009				December 31, 2008
Assets
Cash and cash equivalents		$	14,006,806			$	14,453,603			(3	)%		$	25,592,391			$	20,150,248
Interest-bearing deposits in banks			1,289,000				2,673,000			(52	)			1,388,000				1,685,000
Cash invested at other ATM locations			25,816,329				25,842,389			—				24,328,114				24,243,780
Securities available for sale, at fair value			109,817,830				64,853,202			69				112,296,397				114,235,261
Securities held to maturity			3,512,665				4,082,337			(14	)			3,895,918				4,089,466
Mortgage loans held for sale			4,237,324				535,000			692				1,590,600				996,600
Loans, net of unearned income			342,659,432				315,192,357			9				336,389,803				335,568,071
Allowance for loan losses			(3,021,850	)			(2,377,968	)		27				(2,780,698	)			(2,605,889	)
Loans, net			339,637,582				312,814,389			9				333,609,105				332,962,182
Office properties and equipment, net			15,249,373				12,005,024			27				15,227,422				15,325,997
Cash surrender value of bank-owned life insurance			5,395,580				5,134,487			5				5,334,033				5,268,817
Accrued interest receivable and other assets			8,480,735				5,699,519			49				9,633,416				9,439,637
Total Assets		$	527,443,224			$	448,092,950			18	%		$	532,895,396			$	528,396,988
Liabilities
Deposits		$	371,631,130			$	355,760,365			4	%		$	375,142,247			$	354,145,105
Federal Home Loan Bank advances			22,893,099				38,856,903			(41	)			24,207,021				44,420,795
Accrued interest payable and other liabilities			2,724,291				2,716,604			—				4,246,421				2,868,362
Total Liabilities			397,248,520				397,333,872			—				403,595,689				401,434,262
Shareholders’ Equity
Common stock		$	89,270			$	—			—	%		$	89,270			$	89,270
Additional paid-in capital			87,357,709				—			—				87,165,161				87,182,281
Unearned compensation			(9,934,075	)			—			—				(6,962,960	)			(7,052,230	)
Retained earnings			55,918,381				51,461,993			9				53,778,603				52,055,071
Accumulated other comprehensive income (loss)			(3,236,581	)			(702,915	)		(360	)			(4,770,367	)			(5,311,666	)
Total Shareholders’ Equity			130,194,704				50,759,078			156				129,299,707				126,962,726
Total Liabilities and Shareholders’ Equity		$	527,443,224			$	448,092,950			18	%		$	532,895,396			$	528,396,988

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME

		For The Three Months Ended June 30,										For The Six Months Ended June 30,
		2009			2008				% Change			2009			2008				% Change
Interest Income
Loans, including fees		$	5,596,564		$	5,393,111			4	%		$	11,118,314		$	10,800,448			3	%
Investment securities			1,786,673			965,252			85				3,489,469			1,750,661			99
Other investments and deposits			350,842			309,366			13				663,252			649,818			2
Total interest income			7,734,079			6,667,729			16				15,271,035			13,200,927			16
Interest Expense
Deposits			1,420,771			2,065,285			(31	)%			2,848,043			4,452,304			(36	)%
Federal Home Loan Bank advances			210,138			241,681			(13	)			453,175			403,300			12
Total interest expense			1,630,909			2,306,966			(29	)			3,301,218			4,855,604			(32	)
Net interest income			6,103,170			4,360,763			40				11,969,817			8,345,323			43
Provision for loan losses			248,487			98,448			152				422,149			68,937			512
Net interest income after provision for loan losses			5,854,683			4,262,315			37				11,547,668			8,276,386			40
Noninterest Income
Service fees and charges			444,138			421,212			5	%			898,844			827,465			9	%
Bank card fees			282,536			233,885			21				543,260			441,366			23
Gain on sale of loans, net			174,905			81,119			116				315,292			150,998			109
Loss on sale of real estate owned, net			—			(3,278	)		—				—			(3,488	)		—
Income from bank-owned life insurance			61,547			63,936			(4	)			126,763			127,872			(1	)
Other income			43,049			36,998			16				81,121			55,445			46
Total noninterest income			1,006,175			833,872			21				1,965,280			1,599,658			23
Noninterest Expense
Compensation and benefits			2,597,488			2,143,498			21	%			4,918,636			4,235,999			16	%
Occupancy			330,030			302,210			9				646,402			589,937			10
Marketing and advertising			154,279			158,523			(3	)			321,932			316,573			2
Data processing and communication			374,932			363,988			3				720,198			701,748			3
Professional fees			248,363			103,363			140				461,935			165,747			179
Franchise and shares tax			226,250			—			—				452,500			—			—
Other expenses			710,110			352,736			101				1,126,931			650,110			73
Total noninterest expense			4,641,452			3,424,318			36				8,648,534			6,660,114			30
Income before income tax expense			2,219,406			1,671,869			33				4,864,414			3,215,930			51
Income tax expense			782,400			568,435			38				1,703,876			1,093,416			56
Net income		$	1,437,006		$	1,103,434			30	%		$	3,160,538		$	2,122,514			49	%
Earnings per share - basic		$	0.18			N/A			N/A			$	0.39			N/A			N/A
Earnings per share - diluted		$	0.18			N/A			N/A			$	0.39			N/A			N/A

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION

		For The Three Months Ended June 30,								% Change			For The Three Months Ended March 31, 2009				% Change
(dollars in thousands except per share data)		2009				2008
EARNINGS DATA
Total interest income		$	7,734			$	6,668			16			$	7,537			3	%
Total interest expense			1,631				2,307			(29	)			1,670			(2	)
Net interest income			6,103				4,361			40				5,867			4
Provision for loan losses			248				99			151				174			43
Total noninterest income			1,006				834			21				959			5
Total noninterest expense			4,642				3,424			36				4,007			16
Income tax expense			782				569			37				921			(15	)
Net income		$	1,437			$	1,103			30			$	1,724			(17	)
Earnings per share - diluted		$	0.18				N/A			N/A			$	0.21			(14	)
AVERAGE BALANCE SHEET DATA
Total assets		$	533,715			$	443,235			20	%		$	525,560			2	%
Total earning assets			502,987				415,296			21				497,174			1
Loans			343,798				315,202			9				339,528			1
Interest bearing deposits			305,156				298,548			2				290,590			5
Total deposits			375,188				356,153			5				357,472			5
Total shareholders’ equity			129,369				50,854			154				128,865			—
SELECTED RATIOS (1)
Return on average assets			1.08	%			1.00	%		8	%			1.31			(18	)%
Return on average total equity			4.44				8.68			(49	)			5.35			(17	)
Efficiency ratio (2)			65.29				65.92			(1	)			58.71			11
Average equity to average assets			24.24				11.48			111				24.52			(1	)
Core capital ratio (3) (4)			19.79				11.44			73				19.19			3
Net interest margin (5)			4.87				4.21			16				4.72			3
		June 30, 2009				June 30, 2008				% Change			March 31, 2009				% Change
CREDIT QUALITY (3) (6)
Nonaccrual loans		$	2,438			$	787			210	%		$	2,489			(2	)%
Accruing loans past due 90 days and over			—				—			—				—			—
Total nonperforming loans			2,438				787			210				2,489			(2	)
Other real estate owned			—				49			—				37			—
Total nonperforming assets		$	2,438			$	836			192			$	2,526			(3	)
Nonperforming assets to total assets			0.46	%			0.19	%		142	%			0.47	%		(2	)%
Nonperforming loans to total assets			0.46				0.18			156				0.47			(2	)
Nonperforming loans to total loans			0.71				0.25			184				0.74			(4	)
Allowance for loan losses to nonperforming assets			123.9				284.4			(56	)			110.1			13
Allowance for loan losses to nonperforming loans			123.9				302.3			(59	)			111.7			11
Allowance for loan losses to total loans			0.88				0.75			17				0.83			6
Year-to-date loan charge-offs		$	17			$	35			(51	)%		$	2			750	%
Year-to-date loan recoveries			11				30			(63	)			3			267
Year-to-date net loan charge-offs (recoveries)			6				5			20				(1	)		700
Annualized YTD net loan charge-offs to total loans			—	%(7)			—	%(7)		—	%			—			—	%(7)

⁽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 assets. It is our policy to cease accruing interest on all loans 90 days or more past due. Repossessed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure.

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