EX-99.1 2 dex991.htm PRESS RELEASE

Press Release

Exhibit 99.1

For further information contact:

John W. Bordelon, President and Chief Executive Officer

(337) 237-1960

Release Date:		October 26, 2010
		For Immediate Release

HOME BANCORP ANNOUNCES 2010 THIRD 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 $911,000 for the third quarter of 2010, a decrease of $556,000, or 38%, compared to the second quarter of 2010 and a decrease of $586,000, or 39%, compared to the third quarter of 2009. The third quarter of 2010 was negatively impacted by an $870,000 charge for the other-than-temporary impairment (“OTTI”) of investment securities. Excluding the impact of the OTTI charge, net income for the third quarter of 2010 was $1.5 million, an increase of $19,000, or 1%, compared to the second quarter of 2010 and a decrease of $12,000, or 1%, compared to the third quarter of 2009. Diluted earnings per share were $0.12 for the third quarter of 2010, a decrease of 37% compared to the second quarter of 2010 and the third quarter of 2009. Excluding the impact of the OTTI charge, diluted earnings per share were $0.20 for the third quarter of 2010, an increase of 5% compared to the second quarter of 2010 and the third quarter of 2009.

“We expect many changes in our industry over the next 12 to 24 months,” stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. “Our team is focused on positioning our company to grow amidst the many regulatory and economic challenges facing our industry.”

“Our loan quality remains strong and core deposit growth continues to be outstanding,” added Mr. Bordelon. “Although our reported earnings are down this quarter due to an OTTI charge, our core earnings have been enhanced in 2010 with the acquisition of our Northshore franchise and growth in our Acadiana and Baton Rouge markets.”

Loans and Credit Quality

The Company’s market areas, which are located in southern Louisiana, have been affected by the Deepwater Horizon oil spill in the Gulf of Mexico and the recently lifted deep-water drilling moratorium. The Company’s direct exposure to borrowers with significant operations linked to deep-water drilling in the Gulf amounted to $5.6 million in outstanding loan balances as of September 30, 2010, or 1% of total loans at such date. The Company has remained in contact with each of the impacted borrowers. All such loans are performing in accordance with their terms and, based on our discussions with the borrowers and internal reviews, the Company does not believe it will suffer losses on these loans.

As previously reported, Home Bank entered into a purchase and assumption agreement with the Federal Deposit Insurance Corporation (“FDIC”) on March 12, 2010 to purchase certain assets and to assume deposits and certain other liabilities of Statewide Bank, a full service community bank formerly headquartered in Covington, Louisiana. As a result of the transaction, the Company acquired loans with contractual balances totaling $157.0 million. After fair value adjustments, the book value of the loans acquired totaled $110.4 million. Home Bank entered into loss sharing agreements with the FDIC which cover the acquired loan portfolio (“Covered Loans”) and other repossessed assets (collectively referred to

as “Covered Assets”). Under the terms of the loss sharing agreements, the FDIC will absorb 80% of the first $41 million of losses incurred on Covered Assets and 95% of losses on Covered Assets exceeding $41 million. The Company distinguishes between Covered Loans and loans not covered by the loss sharing agreements (“Noncovered Loans”) due to the differing risk exposure relating to the loans.

Total loans were $446.2 million at September 30, 2010, a decrease of $8.9 million, or 2%, from June 30, 2010, and an increase of $106.0 million, or 31%, from September 30, 2009. During the third quarter of 2010, Noncovered Loans decreased $298,000, while Covered Loans decreased $8.6 million. Growth in Noncovered construction and land (up $5.0 million during the third quarter) and commercial and industrial (up $1.8 million) loans was offset by a decrease in the Noncovered 1-4 family first mortgage loans (down $8.7 million). The third quarter decrease in Covered Loans related primarily to 1-4 family first mortgage (down $4.0 million) and construction and land (down $2.9 million) loans due primarily to loan repayments and foreclosures.

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

		September 30, 2010
(dollars in thousands)		Covered Loans				Noncovered Loans				Total Loans				December 31, 2009				Increase/(Decrease)
Real estate loans:
One- to four-family first mortgage		$	20,734			$	112,000			$	132,734			$	120,044			$	12,690				11	%
Home equity loans and lines			7,082				25,149				32,231				24,678				7,553				31
Commercial real estate			36,767				109,637				146,404				97,513				48,891				50
Construction and land			15,299				47,212				62,511				35,364				27,147				77
Multi-family residential			1,233				4,210				5,443				4,089				1,354				33
Total real estate loans			81,115				298,208				379,323				281,688				97,635				35
Other loans:
Commercial			7,275				36,683				43,958				38,340				5,618				15
Consumer			2,957				19,992				22,949				16,619				6,330				38
Total other loans			10,232				56,675				66,907				54,959				11,948				22
Total loans		$	91,347			$	354,883			$	446,230			$	336,647			$	109,583				33

Nonperforming assets, excluding Covered Assets, were $1.4 million at September 30, 2010, a decrease of $723,000, or 34%, from June 30, 2010, and a decrease of $1.3 million, or 49%, from September 30, 2009. The decrease in the third quarter of 2010 was due to the sale of other real estate owned and a loan relationship which was brought current by the borrower and was returned to performing status. The ratio of nonperforming assets to total assets (excluding Covered Assets) was 0.23% at September 30, 2010, compared to 0.35% at June 30, 2010 and 0.51% at September 30, 2009. Total nonperforming assets, including Covered Assets, were $24.0 million at September 30, 2010 and June 30, 2010. The ratio of total nonperforming assets to total assets (including Covered Assets) was 3.42% at September 30, 2010, compared to 3.38% at June 30, 2010.

The Company recorded net loan charge-offs of $48,000 during the third quarter of 2010, compared to $76,000 in the second quarter of 2010 and $37,000 in the third quarter of 2009. The Company’s loan loss provision for the third quarter of 2010 was $168,000, compared to $200,000 for the second quarter of 2010 and $287,000 for the third quarter of 2009.

At September 30, 2010, the Company’s allowance for loan losses to Noncovered Loans ratio was 1.11%, compared to 1.07% and 0.96% at June 30, 2010 and September 30, 2009, respectively. The allowance for loan losses to total loans ratio was 0.88% at September 30, 2010, compared to 0.84% and 0.96% at June 30, 2010 and September 30, 2009, respectively.

Investment Securities Portfolio

The Company’s investment securities portfolio totaled $132.4 million at September 30, 2010, a decrease of $3.9 million, or 3%, from June 30, 2010, and an increase of $16.0 million, or 14%, from September 30, 2009. The increase in investment securities from September 30, 2009 resulted primarily from the addition of $24.8 million of U.S. agency mortgage-backed securities acquired from Statewide Bank. At September 30, 2010, the Company had a net unrealized gain position on its investment securities portfolio of $1.1 million, compared to a net unrealized gain of $786,000 at June 30, 2010 and a net unrealized loss of $2.7 million at September 30, 2009. Due to increasing delinquencies and defaults in the mortgage loans underlying certain non-agency mortgage-backed securities, the Company recorded an OTTI charge of $870,000 during the third quarter of 2010.

The amortized cost of the Company’s non-agency mortgage-backed securities portfolio has decreased $8.4 million, or 21%, during 2010 primarily due to paydowns. The following table summarizes the Company’s non-agency mortgage-backed securities portfolio as of September 30, 2010 (in thousands).

Collateral		Tranche		S&P Rating		Amortized Cost				Unrealized Gain/(Loss)
Prime		Super Senior		AAA		$	7,918			$	530
Prime		Senior		AAA (1)			15,610				(423	)
Prime		Senior		Below investment grade			2,636				(394	)
Prime		Senior support		Below investment grade			1,486				(578	)
Alt-A		Super senior		Below investment grade			1,557				(241	)
Alt-A		Senior		AAA			619				28
Alt-A		Senior		Below investment grade (2)			1,516				(61	)
Total non-agency mortgage-backed securities						$	31,342			$	(1,139	)

⁽¹⁾ Includes one security with an amortized cost of $1.6 million and an unrealized gain of $10,000 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.

Deposits

The Company’s strong growth in core deposits (i.e., checking, savings and money market) continued during the third quarter of 2010, increasing $21.1 million during the quarter. Excluding the core deposits acquired from Statewide Bank, core deposits have increased $45.0 million in 2010 (a 28% annualized growth rate). Total deposits, which includes certificates of deposit, were $546.7 million at September 30, 2010, an increase of $10.2 million, or 2%, from June 30, 2010, and an increase of $170.0 million, or 45%, from September 30, 2009. The Statewide Bank acquisition added $206.9 million in deposits during the first quarter of 2010, including $46.2 million of higher-cost, out-of-state brokered deposits which the Company elected to re-price. Consistent with management’s expectations, the vast majority of out-of-state depositors elected to withdraw their deposits.

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

		September 30, 2010				December 31, 2009				Increase / (Decrease)
(dollars in thousands)										Amount				Percent
Demand deposit		$	96,734			$	66,956			$	29,778				45	%
Savings			27,765				21,009				6,756				32
Money market			119,932				80,810				39,122				48
NOW			64,313				48,384				15,929				33
Certificates of deposit			237,914				154,434				83,480				54
Total deposits		$	546,658			$	371,593			$	175,065				47

Net Interest Income

Net interest income for the third quarter of 2010 totaled $7.3 million, a decrease of $235,000, or 3%, compared to the second quarter of 2010, and an increase of $1.2 million, or 20%, compared to the third quarter of 2009. The Company’s net interest margin was 4.75% for the third quarter of 2010, 15 basis points lower than the second quarter of 2010 and eight basis points lower than the third quarter of 2009. The decreases in net interest margin were primarily due to lower average yields on interest-earning assets as a result of the current low rate environment.

The following table sets forth the Company’s average balance and average yields earned and rates paid on its interest-earning assets and interest-bearing liabilities for the periods indicated.

		For the Three Months Ended
		September 30, 2010								June 30, 2010								September 30, 2009
(dollars in thousands)		Average Balance				Average Yield/Rate				Average Balance				Average Yield/Rate				Average Balance				Average Yield/Rate
Earning-assets:
Loans receivable		$	456,262				6.58	%		$	455,574				6.73	%		$	343,618				6.50	%
Investment securities			133,074				3.69				137,175				3.97				118,990				5.79
Other interest-earning assets			18,813				0.67				20,362				0.69				36,861				3.21
Total earning-assets		$	608,149				5.76			$	613,111				5.91			$	499,469				6.09
Interest-bearing liabilities:
Deposits:
Savings, checking, and money market		$	204,939				0.72			$	193,271				0.73			$	146,643				0.74
Certificates of deposit			243,240				1.68				255,856				1.62				161,017				2.71
Total interest-bearing deposits			448,179				1.24				449,127				1.24				307,660				1.77
FHLB Advances			22,570				2.48				27,436				2.27				20,809				3.59
Total interest-bearing liabilities		$	470,749				1.30			$	476,563				1.29			$	328,469				1.88
Net interest spread							4.46	%							4.62	%							4.21	%
Net interest margin							4.75								4.90								4.83

Noninterest Income

Noninterest income for the third quarter of 2010 totaled $613,000, a decrease of $722,000, or 54%, compared to the second quarter of 2010 and a decrease of $337,000, or 35%, compared to the third quarter of 2009. Excluding the impact of the OTTI charge incurred in the third quarter of 2010, noninterest income for the third quarter of 2010 was $1.5 million, an increase of $148,000, or 11%, compared to the second quarter of 2010 and $534,000, or 56%, compared to the third quarter of 2009.

The increase in pre-OTTI noninterest income in the third quarter of 2010 compared to the second quarter of 2010 was primarily the result of increased gains on the sale of mortgage loans and higher levels of service fees and charges. These increases were partially offset by a decrease in bank card fees and an OTTI charge of $141,000 incurred in the second quarter of 2010.

The increase in pre-OTTI noninterest income in the third quarter of 2010 compared to the third quarter of 2009 was primarily the result of increased gains on the sale of mortgage loans, higher levels of service fees and charges and bank card fees, and discount accretion related to the FDIC loss sharing receivable. The increase in gains on the sale of mortgage loans was the result of increased loan originations and refinancing due to the current low interest rate environment. The increase in service fees and charges and bank card fees was primarily the result of the addition of accounts through the Statewide Bank acquisition.

Noninterest Expense

Noninterest expense for the third quarter of 2010 totaled $6.4 million, a decrease of $78,000, or 1%, compared to the second quarter of 2010 and an increase of $1.7 million, or 36%, compared to the third quarter of 2009.

The decrease in noninterest expense in the third quarter of 2010 compared to the second quarter of 2010 was primarily attributable to decreases in compensation and benefits and occupancy expenses resulting from efficiencies gained from the conversion of the former Statewide Bank loan and deposit accounts into Home Bank’s operating system during the third quarter of 2010.

The increase in noninterest expense in the third quarter of 2010 compared to the third quarter of 2009 was driven by higher compensation and benefits, occupancy and data processing and communications expenses related to the Statewide Bank acquisition and the addition of our Baton Rouge headquarters location in March 2010. The Company began 2010 with 11 full-service banking offices. The acquisition of six Statewide Bank locations and the opening of our Baton Rouge headquarters has increased our total number of full-service banking offices to 18. Additionally, other expenses increased due to the amortization of the core deposit intangible resulting from the Statewide Bank acquisition, which amounted to $64,000 and $143,000 during the quarter and nine months ended September 30, 2010, respectively.

Non-GAAP Reconciliation

(dollars in thousands)		Third Quarter 2010				First Nine Months  of 2010
Reported noninterest income		$	613			$	2,946
Add: OTTI charge			870				1,011
Non-GAAP noninterest income		$	1,483			$	3,957
Reported net income		$	911			$	3,223
Add: OTTI charge (after tax)			574				667
Non-GAAP net income		$	1,485			$	3,890

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 other-than-temporary impairment charges. 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. The Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, 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, risks of competition, risks of our decisions regarding the fair value of assets acquired and risks regarding our ability to obtain reimbursement under the loss sharing agreements on Covered Assets. 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, 2010				September 30, 2009				% Change				June 30, 2010				December 31, 2009
Assets
Cash and cash equivalents		$	23,771,777			$	37,352,620				(36	)%		$	21,976,535			$	25,709,597
Interest-bearing deposits in banks			6,387,000				3,150,000				103				7,112,000				3,529,000
Cash invested at other ATM locations			—				8,802,596				—				—				—
Investment securities available for sale, at fair value			111,607,433				105,049,877				6				115,131,224				106,752,131
Investment securities held to maturity			20,793,424				11,372,044				83				21,218,038				13,098,847
Mortgage loans held for sale			6,400,335				2,060,453				211				2,662,100				719,350
Loans covered by loss sharing agreements			91,346,684				—				—				99,984,239				—
Noncovered loans, net of unearned income			354,883,203				340,222,334				4				355,180,759				336,647,292
Total loans			446,229,887				340,222,334				31				455,164,998				336,647,292
Allowance for loan losses			(3,923,826	)			(3,271,926	)			20				(3,804,560	)			(3,351,688	)
Total loans, net of allowance for loan losses			442,306,061				336,950,408				31				451,360,438				333,295,604
FDIC loss sharing receivable			32,262,081				—				—				34,673,627				—
Office properties and equipment, net			23,621,092				15,309,879				54				23,452,816				16,186,690
Cash surrender value of bank-owned life insurance			16,034,149				5,461,662				194				15,872,609				15,262,645
Accrued interest receivable and other assets			15,297,599				7,900,029				94				15,858,555				10,081,885
Total Assets		$	698,480,951			$	533,409,568				31			$	709,317,942			$	524,635,749
Liabilities
Deposits		$	546,657,570			$	376,635,513				45	%		$	536,485,853			$	371,592,747
Federal Home Loan Bank advances			16,000,000				19,879,026				(20	)			29,744,891				16,773,802
Accrued interest payable and other liabilities			3,744,475				4,302,342				(13	)			10,349,392				3,519,896
Total Liabilities			566,402,045				400,816,881				41				576,580,136				391,886,445
Shareholders’ Equity
Common stock		$	89,270			$	89,270				—	%		$	89,270			$	89,270
Additional paid-in capital			88,437,391				87,714,515				1				88,064,013				88,072,884
Treasury stock			(7,955,813	)			—				—				(5,734,469	)			(1,848,862	)
Common stock acquired by benefit plans			(9,859,826	)			(10,841,597	)			9				(9,949,096	)			(10,913,470	)
Retained earnings			60,660,647				57,415,818				6				59,749,653				57,437,444
Accumulated other comprehensive income (loss)			707,237				(1,785,319	)			140				518,435				(87,962	)
Total Shareholders’ Equity			132,078,906				132,592,687				—				132,737,806				132,749,304
Total Liabilities and Shareholders’ Equity		$	698,480,951			$	533,409,568				31			$	709,317,942			$	524,635,749

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME

		For The Three Months Ended September 30,								%				For The Nine Months Ended September 30,								%
		2010				2009				Change				2010				2009				Change
Interest Income
Loans, including fees		$	7,549,667			$	5,616,351				34	%		$	21,100,559			$	16,734,665				26	%
Investment securities			1,226,765				1,722,460				(29	)			3,913,125				5,211,929				(25	)
Other investments and deposits			32,899				296,759				(89	)			94,226				960,011				(90	)
Total interest income			8,809,331				7,635,570				15				25,107,910				22,906,605				10
Interest Expense
Deposits			1,403,060				1,371,889				2	%			4,021,924				4,219,932				(5	)%
Federal Home Loan Bank advances			139,521				186,168				(25	)			453,571				639,343				(29	)
Total interest expense			1,542,581				1,558,057				(1	)			4,475,495				4,859,275				(8	)
Net interest income			7,266,750				6,077,513				20				20,632,415				18,047,330				14
Provision for loan losses			167,580				287,061				(42	)			717,362				709,210				1
Net interest income after provision for loan losses			7,099,170				5,790,452				23				19,915,053				17,338,120				15
Noninterest Income
Service fees and charges			541,538				471,925				15	%			1,535,811				1,370,769				12	%
Bank card fees			343,906				277,375				24				1,012,935				820,635				23
Gain on sale of loans, net			198,522				105,149				89				378,817				420,441				(10	)
Income from bank-owned life insurance			161,540				66,082				144				473,206				192,845				145
Other-than-temporary impairment of securities			(870,254	)			—				—				(1,010,771	)			—				—
Gains on the sale of securities, net			—				—				—				39,131				—				—
Other income			237,932				29,159				716				516,689				110,280				369
Total noninterest income			613,184				949,690				(35	)			2,945,818				2,914,970				1
Noninterest Expense
Compensation and benefits			3,824,287				2,849,756				34	%			10,707,803				7,788,637				37	%
Occupancy			615,972				325,581				89				1,652,035				971,983				70
Marketing and advertising			184,179				131,119				40				588,116				453,051				30
Data processing and communication			635,382				328,686				93				1,648,161				1,048,884				57
Professional fees			198,482				267,118				(26	)			895,433				729,053				23
Franchise and shares tax			98,397				226,250				(57	)			441,104				678,750				(35	)
Regulatory fees			159,026				155,559				2				392,282				490,725				(20	)
Other expenses			638,575				384,392				66				1,707,145				1,155,912				48
Total noninterest expense			6,354,300				4,668,461				36				18,032,079				13,316,995				35
Income before income tax expense			1,358,054				2,071,681				(34	)			4,828,792				6,936,095				(30	)
Income tax expense			447,061				574,244				(22	)			1,605,589				2,278,120				(30	)
Net income		$	910,993			$	1,497,437				(39	)%		$	3,223,203			$	4,657,975				(31	)%
Earnings per share - basic		$	0.12			$	0.19				(37	)%		$	0.42			$	0.57				(26	)%
Earnings per share - diluted		$	0.12			$	0.19				(37	)		$	0.42			$	0.57				(26	)

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION

		For The Three Months Ended								% Change				For The Three Months  Ended June 30, 2010				% Change
		September 30,
		2010				2009
(dollars in thousands except per share data)
EARNINGS DATA
Total interest income		$	8,809			$	7,636				15	%		$	9,042				(3	)%
Total interest expense			1,542				1,558				(1	)			1,539				—
Net interest income			7,267				6,078				20				7,503				(3	)
Provision for loan losses			168				287				(41	)			200				(16	)
Total noninterest income			613				949				(35	)			1,335				(54	)
Total noninterest expense			6,354				4,669				36				6,432				(1	)
Income tax expense			447				574				(22	)			739				(40	)
Net income		$	911			$	1,497				(39	)		$	1,467				(38	)
AVERAGE BALANCE SHEET DATA
Total assets		$	703,812			$	529,462				33	%		$	702,783				—	%
Total interest-earning assets			608,149				499,469				22				613,111				(1	)
Loans			456,262				343,618				33				455,574				—
Interest-bearing deposits			448,179				307,660				46				449,127				—
Interest-bearing liabilities			470,749				328,469				43				476,563				(1	)
Total deposits			544,228				373,430				46				538,380				1
Total shareholders’ equity			133,134				131,643				1				132,988				—
SELECTED RATIOS (1)
Return on average assets			0.52	%			1.13	%			(54	)%			0.83	%			(37	)%
Return on average equity			2.74				4.55				(40	)			4.41				(38	)
Efficiency ratio (2)			80.64				66.43				21				72.78				11
Average equity to average assets			18.92				24.86				(24	)			18.92				—
Tier 1 leverage capital ratio (3)			15.27				19.86				(23	)			14.88				3
Total risk-based capital ratio (3)			23.10				30.38				(24	)			22.29				4
Net interest margin			4.75				4.83				(2	)			4.90				(3	)
PER SHARE DATA
Basic earnings per share		$	0.12			$	0.19				(37	)%		$	0.19				(37	)%
Diluted earnings per share			0.12				0.19				(37	)			0.19				(37	)
Book value at period end			15.89				14.85				7				15.65				2
PER SHARE DATA
Shares outstanding at period end			8,311,602				8,926,875				(7	)%			8,480,531				(2	)%
Weighted average shares outstanding
Basic			7,481,472				7,956,020				(6	)%			7,620,257				(2	)%
Diluted			7,531,100				7,987,961				(6	)			7,678,378				(2	)

⁽¹⁾ With the exception of end-of-period ratios, all ratios are based on average monthly balances during the respective periods and are annualized where appropriate.

⁽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 end of period ratios for the Bank only.

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY CREDIT QUALITY INFORMATION

										Total												Total				September 30, 2009 Total (2)
						September 30,  2010 Noncovered								Covered				June 30,  2010 Noncovered
		Covered
(dollars in thousands)
CREDIT QUALITY (1)
Nonaccrual loans		$	19,851			$	1,391			$	21,242			$	19,214			$	1,668			$	20,882			$	2,716
Accruing loans past due 90 days and over			—				—				—				—				—				—				—
Total nonperforming loans			19,851				1,391				21,242				19,214				1,668				20,882				2,716
Other real estate owned			2,634				—				2,634				2,643				445				3,088				—
Total nonperforming assets			22,485				1,391				23,876				21,857				2,113				23,970				2,716
Performing troubled debt restructurings			—				729				729				—				743				743				—
Total nonperforming assets and troubled debt restructurings		$	22,485			$	2,120			$	24,605			$	21,857			$	2,856			$	24,713			$	2,716
Nonperforming assets to total assets (3)			23.92	%			0.23	%			3.42	%			21.30	%			0.35	%			3.38	%			0.51	%
Nonperforming loans to total assets (3)			21.12				0.23				3.04				18.72				0.27				2.94				0.51
Nonperforming loans to total loans (3)			21.73				0.39				4.76				19.22				0.47				4.59				0.80
Allowance for loan losses to nonperforming assets			—				282.18				17.04				—				180.04				16.51				120.50
Allowance for loan losses to nonperforming loans			—				282.18				18.47				—				228.16				18.22				120.50
Allowance for loan losses to total loans			—				1.11				0.88				—				1.07				0.84				0.96
Year-to-date loan charge-offs		$	—			$	193			$	193			$	—			$	124			$	124			$	58
Year-to-date loan recoveries			—				48				48				—				27				27				15
Year-to-date net loan charge-offs			—				145				145				—				97				97				43
Annualized YTD net loan charge-offs to total loans			—	%			0.05	%			0.04	%			—	%			0.05	%			0.04	%			0.02	%

⁽¹⁾ 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.

⁽²⁾ The Bank entered into loss sharing agreements with the FDIC related to the acquisition of Statewide Bank during the first quarter of 2010. Thus, there were no loans covered under these agreements as of September 30, 2009.

⁽³⁾ The credit quality ratios are calculated with respect to the applicable assets and loan portfolios (i.e. Covered, Noncovered, and total).