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:		October 28, 2009 For Immediate Release

HOME BANCORP REPORTS 2009 THIRD QUARTER EARNINGS AND

APPROVAL OF STOCK REPURCHASE PROGRAM

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 $1.5 million for the third quarter of 2009, an increase of $105,000, or 8%, compared to the third quarter of 2008 and an increase $60,000, or 4%, compared to the second quarter of 2009. Diluted earnings per share were $0.17 for the third quarter of 2009, a decrease of 6% from the $0.18 per share reported for the second quarter of 2009. Net income for the first nine months of 2009 was $4.7 million, an increase of $1.1 million, or 33%, compared to the first nine months of 2008.

“Due to our outstanding bankers and resilient markets,” said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank, “we continue to enjoy results that exceed the industry’s performance.”

“Given the turmoil in our industry, many people are re-examining their banking relationships,” added Mr. Bordelon. “Our history of exceptional service and commitment to the communities we serve has produced new customer opportunities for Home Bank throughout 2009. We remain focused on delivering even greater service to our customers by investing in our people, technology and facilities.”

The Company also announced that its Board of Directors approved the repurchase of up to 446,344 shares, or approximately 5%, of the Company’s outstanding common stock. Repurchases may be made by the Company from time-to-time in open-market or privately-negotiated transactions as, in the opinion of management, market conditions warrant.

One Year Anniversary of IPO

The Company celebrated the first anniversary of its initial public stock offering (“IPO”) during October. As a result of the offering, which was completed on October 2, 2008, the Company issued a total of 8,926,875 shares of its common stock for an aggregate of $89.3 million in total offering proceeds.

“In the midst of the continuing struggles in our industry,” said Mr. Bordelon, “Home Bancorp’s remarkably strong capital base positions us to continue profitably growing our company.” The Company did not apply for or accept any funds from the U.S. Treasury’s financial institution capital purchase program.

Baton Rouge Expansion Proceeds

Home Bank began construction on its third full-service branch in Baton Rouge during the third quarter of 2009. The new branch, which will be located on Corporate Boulevard, will serve as the Bank’s Baton Rouge headquarters. The new branch is expected to open during the first half of 2010. In addition to its two other full-service branches in Baton Rouge, the Bank also operates a loan production office in the market.

Loans and Credit Quality

Loans totaled $340.2 million at September 30, 2009, an increase of $22.7 million, or 7%, from September 30, 2008, and a decrease of $2.4 million, or 1%, from June 30, 2009. The Company’s loan mix has changed in 2009 as commercial loan balances have grown, while one-to four- 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.

		September 30,			December 31,			Increase (Decrease)
(dollars in thousands)		2009			2008			Amount				Percent
Real estate loans:
One- to four-family first mortgage		$	125,157		$	138,173		$	(13,016	)		(9	)%
Home equity loans and lines			24,258			23,127			1,131			5
Commercial real estate			91,964			84,096			7,868			9
Construction and land			42,619			35,399			7,220			20
Multi-family residential			6,077			7,142			(1,065	)		(15	)
Total real estate loans			290,075			287,937			2,138			1
Other loans:
Commercial			34,521			34,434			87			—
Consumer			15,626			13,197			2,429			18
Total other loans			50,147			47,631			2,516			5
Total loans		$	340,222		$	335,568		$	4,654			1	%

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. Consumer loan growth in 2009 relates primarily to mobile home loans.

Net loan charge-offs for the first nine months of 2009 were $43,000, compared to $85,000 for the same period in 2008. Non-performing assets totaled $2.7 million, or 0.51% of total assets, at September 30, 2009, compared to $638,000 and $2.4 million at September 30, 2008 and June 30, 2009, respectively. The increase in non-performing assets relates primarily to owner-occupied residential real estate loans. The Company increased its provision for loan losses to $287,000 during the third quarter of 2009, compared to provisions of $92,000 and $248,000 during the third quarter of 2008 and the second quarter of 2009, respectively.

As of September 30, 2009, the allowance for loan losses as a percentage of total loans was 0.96%, compared to 0.75% at September 30, 2008 and 0.88% at June 30, 2009.

Investment Securities Portfolio

The Company’s investment securities portfolio totaled $116.4 million at September 30, 2009, an increase of $36.2 million, or 45%, from September 30, 2008, and an increase of $3.1 million, or 3%, from June 30, 2009. The increase from September 30, 2008 was the result of the Company’s investment of a portion of the IPO proceeds received in the fourth quarter of 2008. At September 30, 2009, the Company had a net unrealized loss position on its investment securities portfolio of $2.7 million, compared to net unrealized losses of $2.5 million and $4.9 million at September 30, 2008 and June 30, 2009, respectively. The unrealized losses relate primarily to the Company’s non-agency mortgage-backed securities holdings, which amounted to $44.5 million, or 8% of total assets, at September 30, 2009.

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

Collateral		Tranche		S&P Rating		# of Securities		Amortized Cost			Unrealized Gain/(Loss)
Prime		Super senior		AAA		5		$	10,667		$	194
Prime		Super senior		Below investment grade		2			2,639			(635	)
Prime		Senior		AAA (1)		9			20,199			(1,685	)
Prime		Senior		Below investment grade		1			3,322			(775	)
Prime		Senior support		Below investment grade		4			3,920			(669	)
Alt-A		Senior		AAA		1			983			30
Alt-A		Senior		Below investment grade (2)		1			1,958			(929	)
Alt-A		Senior support		Below investment grade		1			805			(97	)
Total non-agency mortgage-backed securities						24		$	44,493		$	(4,566	)

^{( 1 )} Includes one security with an amortized cost of $2.1 million and an unrealized loss of $63,000 not rated by S&P. This security is rated “Aaa” by Moody’s.

^{( 2 )} 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 has historically maintained contracts with various counterparties to provide cash for ATMs throughout the United States. The Bank has elected not to renew these contracts; hence, the balance of cash invested at other ATM locations has significantly decreased during 2009.

Cash invested at other ATM locations totaled $8.8 million at September 30, 2009, a decrease of $11.9 million from September 30, 2008, and a decrease of $17.0 million from June 30, 2009. The Bank expects to receive the balance of cash invested at other ATM locations from its one remaining counterparty during the fourth quarter of 2009.

Deposits

Deposits totaled $376.6 million at September 30, 2009, an increase of $23.2 million, or 7%, from September 30, 2008, and an increase of $5.0 million, or 1%, from June 30, 2009. The Company remains focused on growing its core deposit base (i.e., checking, savings and money market accounts), which has increased $17.6 million, or 9%, during the first nine months of 2009.

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

(dollars in thousands)		September 30, 2009			December 31, 2008			Increase (Decrease)
								Amount				Percent
Demand deposit		$	66,305		$	67,047		$	(742	)		(1	)%
Savings			21,782			19,741			2,041			10
Money market			86,411			68,850			17,561			26
NOW			40,921			42,200			(1,279	)		(3	)
Certificates of deposit			161,217			156,307			4,910			3
Total deposits		$	376,636		$	354,145		$	22,491			6	%

Purchase of 2009 Recognition and Retention Plan Shares

In May 2009, shareholders approved the adoption of the 2009 Recognition and Retention Plan (the “Plan”). In order to fund the Plan, the related trust completed the purchase of a total of 357,075 shares of Home Bancorp’s common stock in the open market since the Plan’s approval at an average cost of $11.81 per share.

Net Interest Income

Net interest income for the third quarter of 2009 totaled $6.1 million, an increase of $1.3 million, or 28%, compared to the third quarter of 2008, and a decrease of $26,000, or 0.4%, compared to the second quarter of 2009. The Company’s net interest margin was 4.83% for the third quarter of 2009, 52 basis points higher than the same quarter a year ago and 4 basis points lower than the second quarter of 2009. The 52 basis point increase in the net interest margin compared to the third quarter of 2008 is primarily the result of a $61.9 million increase in average interest-earning assets due primarily to the completion of the Company’s IPO and the investment of the net proceeds from the IPO, as well as reduced funding costs.

Average interest-earning assets totaled $499.5 million for the quarter ended September 30, 2009, an increase of $61.9 million, or 14%, and a decrease of $3.5 million, or 1%, from the third quarter of 2008 and the second quarter of 2009, respectively. The average yield on the Company’s interest-earning assets for the quarter ended September 30, 2009 was 6.09%, decreases of 20 basis points and seven basis points compared to the quarters ended September 30, 2008 and June 30, 2009, respectively.

Average interest-bearing liabilities totaled $328.5 million for the quarter ended September 30, 2009, a decrease of $7.0 million, or 2%, and $1.3 million, or 0.4%, compared to the quarters ended September 30, 2008 and June 30, 2009, respectively. The average rate paid on interest-bearing liabilities for the quarter ended September 30, 2009 was 1.88%, decreases of 67 basis points and 10 basis points compared to the quarters ended September 30, 2008 and June 30, 2009, respectively.

Noninterest Income

Noninterest income for the third quarter of 2009 was $949,000, an increase of $137,000, or 17%, and a decrease of $57,000, or 6%, compared to the quarters ended September 30, 2008 and June 30, 2009, respectively. The increase in noninterest income compared to the third quarter of 2008 was primarily the result of increased gains on sale of mortgage loans and higher levels of service fees and charges and bank card fees. The decrease in noninterest income compared to the second quarter of 2009 was primarily the result of a $70,000, or 40%, decrease in gains on sale of mortgage loans.

Noninterest Expense

Noninterest expense for the third quarter of 2009 totaled $4.7 million, an increase of $1.3 million, or 39%, and an increase of $27,000, or 1%, compared to the quarters ended September 30, 2008 and June 30, 2009, respectively. Non-interest expense for the second quarter of 2009 included a $200,000 FDIC special assessment.

The primary reason for the increase in noninterest expense from the third quarter of 2008 to the third quarter of 2009 was 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. 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, including the Louisiana bank shares tax. In addition, the FDIC has increased the base insurance premium assessment on deposits.

The primary reason for the increase in noninterest expense from the second quarter of 2009 to the third quarter of 2009 also was an increase in compensation and benefits expense. Compensation and benefits expense increased primarily due to the recognition of vesting expense related to stock-based compensation plans for a full quarter. These plans commenced and began vesting approximately halfway through the second quarter of 2009. Additionally, group insurance costs increased due to an increase in the number of claims incurred. These increases were partially offset by a decrease in data processing expenses as the result of the Company’s efforts to improve operational efficiency.

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

		September 30,				September 30,				%			June 30,				December 31,
		2009				2008				Change			2009				2008
Assets
Cash and cash equivalents		$	37,352,620			$	60,389,012			(38	)%		$	14,006,806			$	20,150,248
Interest-bearing deposits in banks			3,150,000				792,000			298				1,289,000				1,685,000
Cash invested at other ATM locations			8,802,596				20,697,177			(57	)			25,816,329				24,243,780
Securities available for sale, at fair value			105,049,877				76,301,887			38				109,817,830				114,235,261
Securities held to maturity			11,372,044				3,870,154			194				3,512,665				4,089,466
Mortgage loans held for sale			2,060,453				281,200			633				4,237,324				996,600
Loans, net of unearned income			340,222,334				317,564,165			7				342,659,432				335,568,071
Allowance for loan losses			(3,271,926	)			(2,390,573	)		37				(3,021,850	)			(2,605,889	)
Loans, net			336,950,408				315,173,592			7				339,637,582				332,962,182
Office properties and equipment, net			15,309,879				13,489,704			13				15,249,373				15,325,997
Cash surrender value of bank-owned life insurance			5,461,662				5,201,472			5				5,395,580				5,268,817
Accrued interest receivable and other assets			7,900,029				6,848,881			15				8,480,735				9,439,637
Total Assets		$	533,409,568			$	503,045,079			6	%		$	527,443,224			$	528,396,988
Liabilities
Deposits		$	376,635,513			$	353,476,182			7	%		$	371,631,130			$	354,145,105
Federal Home Loan Bank advances			19,879,026				15,843,422			25				22,893,099				44,420,795
Accrued interest payable and other liabilities			4,302,342				82,537,048			(95	)			2,724,291				2,868,362
Total Liabilities			400,816,881				451,856,652			(11	)			397,248,520				401,434,262
Shareholders’ Equity
Common stock		$	89,270			$	—			—	%		$	89,270			$	89,270
Additional paid-in capital			87,714,515				—			—				87,357,709				87,182,281
Common stock acquired by benefit plans			(10,841,597	)			—			—				(9,934,075	)			(7,052,230	)
Retained earnings			57,415,818				52,854,168			9				55,918,381				52,055,071
Accumulated other comprehensive loss			(1,785,319	)			(1,665,741	)		7				(3,236,581	)			(5,311,666	)
Total Shareholders’ Equity			132,592,687				51,188,427			159				130,194,704				126,962,726
Total Liabilities and Shareholders’ Equity		$	533,409,568			$	503,045,079			6	%		$	527,443,224			$	528,396,988

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME

		For The Three Months Ended September 30,						% Change			For The Nine Months Ended September 30,							% Change
		2009			2008						2009			2008
Interest Income
Loans, including fees		$	5,616,351		$	5,455,503		3	%		$	16,734,665		$	16,255,952			3	%
Investment securities			1,722,460			1,054,336		63				5,211,929			2,804,997			86
Other investments and deposits			296,759			387,095		(23	)			960,011			1,036,913			(7	)
Total interest income			7,635,570			6,896,934		11				22,906,605			20,097,862			14
Interest Expense
Deposits			1,371,889			1,875,504		(27	)%			4,219,932			6,327,808			(33	)%
Federal Home Loan Bank advances			186,168			280,141		(34	)			639,343			683,442			(6	)
Total interest expense			1,558,057			2,155,645		(28	)			4,859,275			7,011,250			(31	)
Net interest income			6,077,513			4,741,289		28				18,047,330			13,086,612			38
Provision for loan losses			287,061			92,500		210				709,210			161,437			339
Net interest income after provision for loan losses			5,790,452			4,648,789		25				17,338,120			12,925,175			34
Noninterest Income
Service fees and charges			471,925			428,529		10	%			1,370,769			1,255,994			9	%
Bank card fees			277,375			241,511		15				820,635			682,877			20
Gain on sale of loans, net			105,149			41,555		153				420,441			192,553			118
Loss on sale of real estate owned, net			—			—		—				—			(3,488	)		—
Income from bank-owned life insurance			66,082			66,985		(1	)			192,845			194,857			(1	)
Other income			29,159			33,238		(12	)			110,280			88,683			24
Total noninterest income			949,690			811,818		17				2,914,970			2,411,476			21
Noninterest Expense
Compensation and benefits			2,849,756			2,207,930		29	%			7,788,637			6,455,640			21	%
Occupancy			325,581			297,149		10				971,983			887,086			10
Marketing and advertising			131,119			92,830		41				453,051			409,403			11
Data processing and communication			328,686			315,601		4				1,048,884			1,017,349			3
Professional fees			267,118			69,422		285				729,053			235,169			210
Franchise and shares taxes			226,250			—		—				678,750			—			—
Regulatory fees			155,559			41,672		273				490,725			112,998			334
Other expenses			384,392			328,304		17				1,155,912			895,376			29
Total noninterest expense			4,668,461			3,352,908		39				13,316,995			10,013,021			33
Income before income tax expense			2,071,681			2,107,699		(2	)			6,936,095			5,323,630			30
Income tax expense			574,244			715,524		(20	)			2,278,120			1,808,941			26
Net income		$	1,497,437		$	1,392,175		8	%		$	4,657,975		$	3,514,689			33	%
Earnings per share - basic		$	0.18			N/A		N/A			$	0.57			N/A			N/A
Earnings per share - diluted		$	0.17			N/A		N/A			$	0.56			N/A			N/A

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION

		For The Three Months Ended September 30,								% Change			For The Three Months Ended June 30, 2009				% Change
												2009								2008
(dollars in thousands except per share data)
EARNINGS DATA
Total interest income		$	7,636			$	6,897			11			$	7,734			(1	)%
Total interest expense			1,558				2,156			(28	)			1,631			(4	)
Net interest income			6,078				4,741			28				6,103			—
Provision for loan losses			287				92			210				248			16
Total noninterest income			949				812			17				1,006			(6	)
Total noninterest expense			4,669				3,353			39				4,642			1
Income tax expense			574				716			(20	)			782			(27	)
Net income		$	1,497			$	1,392			8			$	1,437			4
Earnings per share - diluted		$	0.17				N/A			N/A			$	0.18			(6	)
AVERAGE BALANCE SHEET DATA
Total assets		$	529,462			$	464,876			14	%		$	533,715			(1	)%
Total interest-earning assets			499,469				437,562			14				502,987			(1	)
Loans			343,618				319,242			8				343,798			—
Interest-bearing deposits			307,660				296,485			4				305,156			1
Total deposits			373,430				359,210			4				375,188			—
Total shareholders’ equity			131,643				51,268			157				129,369			2
SELECTED RATIOS (1)
Return on average assets			1.13	%			1.20	%		(6	)%			1.08			5	%
Return on average total equity			4.55				10.86			(58	)			4.44			2
Efficiency ratio (2)			66.43				60.38			10				65.29			2
Average shareholders’ equity to average assets			24.86				11.03			125				24.24			3
Core capital ratio (3) (4)			19.86				10.57			88				19.79			—
Net interest margin (5)			4.83				4.31			12				4.87			(1	)
		September 30, 2009				September 30, 2008				% Change			June 30, 2009				% Change
CREDIT QUALITY (3) (6)
Nonaccrual loans		$	2,716			$	552			392	%		$	2,438			11	%
Accruing loans past due 90 days and over			—				—			—				—			—
Total nonperforming loans			2,716				552			392				2,438			11
Other real estate owned			—				86			—				—			—
Total nonperforming assets		$	2,716			$	638			326			$	2,438			11
Nonperforming assets to total assets			0.51	%			0.13	%		292	%			0.46	%		11	%
Nonperforming loans to total assets			0.51				0.11			364				0.46			11
Nonperforming loans to total loans			0.80				0.17			371				0.71			13
Allowance for loan losses to nonperforming assets			120.5				374.7			(68	)			123.9			(3	)
Allowance for loan losses to nonperforming loans			120.5				433.1			(72	)			123.9			(3	)
Allowance for loan losses to total loans			0.96				0.75			28				0.88			9
Year-to-date loan charge-offs		$	58			$	123			(53	)%		$	17			241	%
Year-to-date loan recoveries			15				38			(61	)			11			36
Year-to-date net loan charge-offs			43				85			(49	)			6			617
Annualized YTD net loan charge-offs to total loans			0.02	%			0.04	%		(50	)%			—			—	%

⁽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.