LAFAYETTE, La., July 28, 2020 /PRNewswire/ — Home Bancorp, Inc. (Nasdaq: «HBCP») (the «Company»), the parent company for Home Bank, N.A. (the «Bank») (www.home24bank.com), reported financial results for the second quarter of 2020.  For the quarter, the Company reported net income of $2.5 million, or $0.29 per diluted common share («diluted EPS»), compared to $1.9 million, or $0.21 diluted EPS, for the first quarter of 2020.

«While the long-term impact of COVID-19’s effect on our economy remains tremendously difficult to estimate,» said John W. Bordelon, Chairman, President and Chief Executive Officer of the Company and the Bank, «I’ve admired how our customers have managed the short-term challenges they’ve faced.  They have adjusted their operations in countless ways to ensure they continue to serve their clients as best they can. That said, the challenges they face are significant as the virus spreads and the economy continues to struggle.»

«Just as the businesses we bank have stepped up to serve their clients, our bankers have done a wonderful job stepping up for our customers,» continued Bordelon. «Over the past several months, our employees have been reminded time and time again of the critical role we play in our communities.  Despite the uncertain road before us, the spirit within our company has never been higher.  We will rise to meet the challenges ahead.  We will serve one another, our customers and communities like never before.»

COVID-19 Response

While banking operations have not been restrained by state and local government COVID-19 restrictions, we have adapted to protect our employees and customers by working remotely as much as possible, enhancing cleaning procedures, and enacting several other measures to reduce the risk of transmission of the virus.  

The Company has been active in providing Small Business Administration («SBA») Paycheck Protection Program («PPP») loans. Through July 24, 2020, we have funded or are currently in the process of funding approximately 2,970 loans totaling $260.2 million under the PPP. At June 30, 2020, the total recorded net investment in PPP loans was $249.6 million.

To give immediate financial support to our customers, the Company began providing principal and/or interest payment relief options in March 2020.  When we last reported the level of such deferrals in our first quarter Form 10-Q (as of May 8, 2020), the level of  deferrals totaled  $533.0 million, or 27% of total loans.  As of July 24, 2020, the level of deferrals has decreased to $357.2 million, or 18% of total loans.

 Second Quarter 2020 Highlights

  • Loans grew by $226.8 million on a linked-quarter basis due primarily to PPP loans;
  • The provisions for loan losses and unfunded lending commitments totaled $7.0 million in the aggregate during the second quarter, reflecting our assessment of the change in expected losses due primarily to the economic impact of the COVID-19 pandemic;
  • The allowance for loan losses totaled $33.8 million, or 1.72% of total loans, at June 30, 2020. The allowance for credit losses («ACL»), which includes the allowance for unfunded lending commitments, totaled $37.5 million, or 1.91% of total loans at June 30, 2020. Excluding PPP loans, the ratio of allowance for loan losses to total loans and the ratio for allowance for credit losses was 1.97% and 2.18%, respectively;
  • Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.11% and 14.83% at June 30, 2020, compared to 10.84% and 14.88% at March 31, 2020;
  • The net interest margin was 3.75% for the three months ended June 30, 2020, down 43 basis points from the first quarter of 2020. The net interest margin for the second quarter includes the impact of PPP loans and higher level of cash and cash equivalents during the quarter; and
  • The average yield on total interest-bearing deposits was 0.78% in the second quarter of 2020, down 29 basis points from the first quarter of 2020.

Loans

Total loans grew by $226.8 million, or 13%, from March 31, 2020 to June 30, 2020, due to PPP loans. Excluding PPP loans, loans decreased by $22.8 million, or 1%, during the quarter.  The following table summarizes the changes in the Company’s loan portfolio from March 31, 2020 to June 30, 2020. 

June 30,

March 31,

Increase/(Decrease)

(dollars in thousands)

2020

2020(1)

Amount

Percent

Real estate loans:

One- to four-family first mortgage

$

431,999

$

447,718

$

(15,719)

(4)

%

Home equity loans and lines

72,956

78,011

(5,055)

(6)

Commercial real estate

689,942

691,358

(1,416)

Construction and land

203,592

205,542

(1,950)

(1)

Multi-family residential

81,635

74,982

6,653

9

Total real estate loans

1,480,124

1,497,611

(17,487)

(1)

Other loans:

Commercial and industrial

444,728

198,261

246,467

124

Consumer

41,073

43,270

(2,197)

(5)

Total other loans

485,801

241,531

244,270

101

Total loans

$

1,965,925

$

1,739,142

$

226,783

13

%

(1)

Certain reclassifications have been made to prior period balances to conform to the current period presentation.

At June 30, 2020, the total recorded investment in PPP loans was $249.6 million. This amount is net of $8.5 million in deferred lender fees, which will be amortized into interest income over the life of the loans (on a contractual basis, approximately 2 years on average).

Credit Quality and Allowance for Credit Losses

Nonperforming assets («NPAs») totaled $28.0 million, or 1.06% of total assets, and $29.5 million, or 1.31% of total assets, at June 30, 2020 and March 31, 2020, respectively. The Company recorded net loan charge-offs of $1.1 million during the second quarter of 2020, compared to net loan charge-offs of $268,000 for the first quarter of 2020. The increase in net loan charge-offs during the second quarter was primarily due to $658,000 in charge-offs related to an acquired farm loan relationship and $385,000 in charge-offs related to an acquired energy loan relationship. Both relationships were classified as substandard prior to the COVID-19 crisis.

Beginning in March 2020, in response to the economic challenges brought on by the COVID-19 crisis, we began offering our borrowers payment relief options primarily in the form of deferrals of principal and/or interest payments for an initial term of up to three months.  When we last reported the level of such deferrals in our first quarter Form 10-Q (as of May 8), the level of  deferrals totaled  $533.0 million, or 27% of total loans.  As of July 24, 2020 the level of deferrals has decreased to $357.2 million, or 18% of total loans.

The provision for loan losses for the second quarter of 2020 totaled $6.5 million, up $214,000 from the first quarter of 2020. The second quarter provision for loan losses reflects our assessment of the change in expected losses due primarily to the current and anticipated economic impact of the COVID-19 pandemic. Changes in expected losses consider various factors including the changing economic activity, potential mitigating effects of governmental stimulus, the duration of the health crisis, customer specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.

The following table provides a summary of the loan portfolio at June 30, 2020, stratified by certain selected industry segments, and related reserve builds during the six months ended June 30, 2020. We have separately identified certain information regarding PPP loans which, due to the existence of full repayment guarantees from the SBA as well as the likelihood that the vast majority of such loans will be forgiven, we believe entail minimal credit risk to the Company.

Total Loans

PPP Loans

Reserve Builds(1) for the

Quarters Ended

Total ACL

ACL to
Total Loans

ACL to
Total Non-PPP
Loans

(dollars in thousands)

June 30, 2020

June 30, 2020

March 31, 2020

June 30, 2020

June 30, 2020

June 30, 2020

June 30, 2020

Retail CRE

$

191,761

$

$

744

$

4,380

$

7,108

3.71

%

3.71

%

Hotels and short-term rentals

90,137

3,979

1,885

1,517

4,313

4.78

5.01

Restaurants and bars

95,352

30,865

545

1,382

2,601

2.73

4.03

Energy

29,225

1,204

(101)

1,614

5.52

5.52

Credit cards

3,831

327

(32)

383

10.00

10.00

Other loans

1,555,619

214,779

1,284

(1,813)

17,804

1.14

1.33

Total

$

1,965,925

$

249,623

$

5,989

$

5,333

$

33,823

1.72

%

1.97

%

Unfunded lending commitments(2)

729

543

3,637

Total

$

1,965,925

$

249,623

$

6,718

$

5,876

$

37,460

1.91

%

2.18

%

(1)

«Reserve build» represents the amount by which the provisions for credit  losses on loans and unfunded lending commitments exceed net loan charge-offs. For the quarters ended June 30, 2020 and March 31, 2020, the provision for credit losses totaled $7.0 million, and net loan charge-offs were $1.1 million and $268,000, respectively.

(2)

At June 30, 2020, the allowance of $3.6 million related to unfunded lending commitments of $336.3 million. The ACL on unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.

Investment Securities

The following table summarizes the composition of the Company’s investment securities portfolio at June 30, 2020.

(dollars in thousands)

Recorded
Investment

Available-for-sale

U.S. agency mortgage-backed

$

115,743

Collateralized mortgage obligations

117,643

Municipal bonds

15,099

U.S. government agency

6,532

Corporate bonds

1,905

Total available-for-sale

256,922

Held to Maturity

Municipal Bonds

4,333

Total investment securities

$

261,255

Securities available-for-sale («AFS») made up 98% of total investment securities and net unrealized gains on AFS securities totaled $6.7 million at June 30, 2020.

Deposits

Total deposits increased $409.2 million, or 22.0%, from March 31, 2020 to $2.3 billion at June 30, 2020. Customers who received PPP loans increased their deposit balances by a net of $210.2 million during the second quarter of 2020.  The following table summarizes the changes in the Company’s deposits from March 31, 2020 to June 30, 2020.

June 30,

March 31,

Increase/(Decrease)

(dollars in thousands)

2020

2020

Amount

Percent

Demand deposits

$

647,789

$

455,512

$

192,277

42

%

Savings

237,168

206,597

30,571

15

Money market

305,668

266,519

39,149

15

NOW

688,336

536,643

151,693

28

Certificates of deposit

387,743

392,230

(4,487)

(1)

Total deposits

$

2,266,704

$

1,857,501

$

409,203

22

%

The average rate on interest-bearing deposits decreased 29 basis points from 1.07% for the first quarter of 2020 to 0.78% for the second quarter of 2020. At June 30, 2020, certificates of deposit maturing within the next 12 months totaled  $291.0 million.

Net Interest Income

The net interest margin («NIM») decreased 43 basis points from 4.18% for the first quarter of 2020 to 3.75% for the second quarter of 2020 primarily due to a decrease in the yield on interest-earning assets, which was down 66 basis points from the first quarter of 2020. Outstanding PPP loans negatively impacted the average loan yield by 23 basis points and the NIM by 7 basis points during the second quarter. During the second quarter of 2020, $882,000 of PPP lender fees were recognized in loan interest income. The remaining balance of $8.5 million in deferred lender fees will be amortized into interest income over the life of the PPP loans.  A $170.2 million, or 265%, increase in cash and cash equivalents at June 30, 2020 compared to March 31, 2020, resulted in higher average other interest-earning assets due primarily to the growth in deposits.  The increase in cash and cash equivalents negatively impacted the average yield on total interest-earning assets and the NIM by 30 and 26 basis points, respectively.

Loan accretion income from acquired loans totaled $746,000 during the second quarter of 2020, down $64,000 from $810,000 for the first quarter of 2020. At June 30, 2020, variable rate loans totaled $453.6 million, or 23% of total loans.

The following table summarizes the Company’s average volume and rate of its interest-earning assets and interest-bearing liabilities for the periods indicated.  Taxable equivalent («TE») yields on investment securities have been calculated using a marginal tax rate of 21%.

For the Three Months Ended

June 30, 2020

March 31, 2020

(dollars in thousands)

Average
Balance

Interest

Average
Yield/ Rate

Average
Balance

Interest

Average
Yield/ Rate

Interest-earning assets:

Loans receivable

$

1,934,627

$

24,371

5.00

%

$

1,735,224

$

23,699

5.43

%

Investment securities (TE)

256,069

1,182

1.88

263,040

1,412

2.19

Other interest-earning assets

186,127

117

0.25

28,002

138

1.99

Total interest-earning assets

$

2,376,823

$

25,670

4.30

%

$

2,026,266

$

25,249

4.96

%

Interest-bearing liabilities:

Deposits:

Savings, checking, and money market

$

1,157,239

$

1,347

0.47

%

$

989,028

$

1,822

0.74

%

Certificates of deposit

391,380

1,665

1.71

392,670

1,845

1.89

Total interest-bearing deposits

1,548,619

3,012

0.78

1,381,698

3,667

1.07

Other borrowings

5,539

53

3.86

5,539

53

3.86

FHLB advances

70,460

188

1.07

45,729

206

1.80

Total interest-bearing liabilities

$

1,624,618

$

3,253

0.80

%

$

1,432,966

$

3,926

1.10

%

Net interest spread (TE)

3.50

%

3.86

%

Net interest margin (TE)

3.75

%

4.18

%

Noninterest Income

Noninterest income for the second quarter of 2020 totaled $3.1 million, down $255,000, or 8%, from the first quarter of 2020 due primarily to a decrease in service fees and charges (down $522,000), which was partially offset by an increase in the gain on the sale of loans (up $345,000).  Service fees and charges decreased primarily due to a decline in income from overdraft fees on deposit accounts.

Noninterest Expense

Noninterest expense for the second quarter of 2020 totaled $16.0 million, down $151,000, or 1%, from the first quarter of 2020. The decrease in noninterest expense was primarily due to decreases in the provision for credit losses on unfunded lending commitments (down $187,000) and marketing and advertising expenses (down $138,000) for the second quarter of 2020, partially offset by an increase in regulatory fees (up $246,000) as FDIC assessment credits were exhausted during the first quarter.

Capital and Liquidity

The Company’s tangible common equity ratio was 9.54% and 11.32% at June 30, 2020 and March 31, 2020, respectively. At June 30, 2020, the Bank’s preliminary Tier 1 leverage capital ratio was 9.11%, down 173 basis points from March 31, 2020, and preliminary total risk-based capital ratio was 14.83%, down five basis points from March 31, 2020. Loans covered under the PPP are included in the Bank’s Tier 1 leverage capital ratio.

The following table summarizes the Company’s primary and secondary sources of liquidity.

June 30,

(dollars in thousands)

2020

Cash and cash equivalents

$

234,255

Unpledged investment securities, amortized cost

113,386

FHLB advance availability

729,531

Unsecured lines of credit

55,000

Federal Reserve discount window availability

500

Total primary and secondary liquidity

$

1,132,672

Dividend and Share Repurchases

The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.22 per share payable on August 21, 2020, to shareholders of record as of August 10, 2020. 

The Company repurchased 115,327 shares of its common stock during the second quarter of 2020 at an average price per share of $24.69, or an aggregate of $2.8 million, under the Company’s 2019 Repurchase Plan. An additional 82,916 shares remain eligible for purchase under the 2019 Repurchase Plan.  The book value per share and tangible book value per share of the Company’s common stock was $34.50 and $27.39, respectively, at June 30, 2020.

Non-GAAP Reconciliation 

This news release contains financial information determined by methods other than in accordance with generally accepted accounting principles («GAAP»). The Company’s management uses this non-GAAP financial information in its analysis of the Company’s performance. In this news release, information is included which excludes intangible assets and PPP loans. Management believes the presentation of this non-GAAP financial information provides useful information that is helpful to a full understanding of the Company’s financial position and operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP financial information presented by other companies.  A reconciliation on non-GAAP information included herein to GAAP is presented below.

For the Three Months Ended

(dollars in thousands, except per share data)

June 30, 2020

March 31, 2020

June 30, 2019

Reported net income

$

2,493

$

1,905

$

6,580

Add: Core deposit intangible amortization, net tax

270

279

314

Non-GAAP tangible income

$

2,763

$

2,184

$

6,894

Total assets

$

2,636,896

$

2,248,601

$

2,220,386

Less: Intangible assets

63,777

64,119

65,247

Non-GAAP tangible assets

$

2,573,119

$

2,184,482

$

2,155,139

Total shareholders’ equity

$

309,326

$

311,497

$

313,494

Less: Intangible assets

63,777

64,119

65,247

Non-GAAP tangible shareholders’ equity

$

245,549

$

247,378

$

248,247

Total loans

$

1,965,925

$

1,739,142

$

1,692,948

Less: PPP loans

249,623

Total loans excluding PPP loans

$

1,716,302

$

1,739,142

$

1,692,948

Allowance for loan losses to total loans

1.72

%

1.64

%

1.02

%

Less: PPP loans

0.25

Non-GAAP allowance for loan losses to total loans

1.97

%

1.64

%

1.02

%

Return on average equity

3.20

%

2.43

%

8.48

%

Add: Average intangible assets

1.25

1.07

2.77

Non-GAAP return on average tangible common equity

4.45

%

3.50

%

11.25

%

Common equity ratio

11.73

%

13.85

%

14.12

%

Less: Intangible assets

2.19

2.53

2.60

Non-GAAP tangible common equity ratio

9.54

%

11.32

%

11.52

%

Book value per share

$

34.50

$

34.35

$

33.20

Less: Intangible assets

7.11

7.07

6.91

Non-GAAP tangible book value per share

$

27.39

$

27.28

$

26.29

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, 2019,  as supplemented by its Current Report on Form 8-K dated April 28, 2020, describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for credit losses, the impact of the COVID-19 pandemic, risks of our growth strategy, geographic concentration of our business, dependence on our management team, risks of market rates of interest and of regulation on our business and risks of competition. Forward-looking statements speak only as of the date they are made.  We do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events.

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

(dollars in thousands)

June 30, 2020

March 31,
2020

%
Change

June 30, 2019

Assets

Cash and cash equivalents

$

234,255

$

64,102

265

%

$

71,325

Interest-bearing deposits in banks

449

449

694

Investment securities available for sale, at fair value

256,922

265,646

(3)

261,626

Investment securities held to maturity

4,333

6,607

(34)

8,163

Mortgage loans held for sale

13,359

9,753

37

4,501

Loans, net of unearned income

1,965,925

1,739,142

13

1,692,948

Allowance for loan losses

(33,823)

(28,490)

19

(17,239)

Total loans, net of allowance for loan losses

1,932,102

1,710,652

13

1,675,709

Office properties and equipment, net

45,967

46,541

(1)

47,698

Cash surrender value of bank-owned life insurance

39,953

39,725

1

39,927

Goodwill and core deposit intangibles

63,777

64,119

(1)

65,247

Accrued interest receivable and other assets

45,779

41,007

12

45,496

Total Assets

$

2,636,896

$

2,248,601

17

$

2,220,386

Liabilities

Deposits

$

2,266,704

$

1,857,501

22

%

$

1,829,169

Other Borrowings

5,539

5,539

5,539

Federal Home Loan Bank advances

35,041

54,319

(35)

54,615

Accrued interest payable and other liabilities

20,286

19,745

3

17,569

Total Liabilities

2,327,570

1,937,104

20

1,906,892

Shareholders’ Equity

Common stock

90

91

(1)

%

94

Additional paid-in capital

166,494

167,249

169,233

Common stock acquired by benefit plans

(2,970)

(3,063)

3

(3,351)

Retained earnings

140,582

141,798

(1)

146,348

Accumulated other comprehensive income

5,130

5,422

(5)

1,170

Total Shareholders’ Equity

309,326

311,497

(1)

313,494

Total Liabilities and Shareholders’ Equity

$

2,636,896

$

2,248,601

17

$

2,220,386

 

HOMEBANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME

(Unaudited)

For the Three Months Ended

(dollars in thousands, except per share data)

June 30, 2020

March 31, 2020

%
Change

June 30, 2019

%
Change

Interest Income

Loans, including fees

$

24,371

$

23,699

3

%

$

23,812

2

%

Investment securities

1,182

1,412

(16)

1,729

(32)

Other investments and deposits

117

138

(15)

380

(69)

Total interest income

25,670

25,249

2

25,921

(1)

Interest Expense

Deposits

3,012

3,667

(18)

%

3,735

(19)

%

Other borrowings

53

53

53

Federal Home Loan Bank advances

188

206

(9)

258

(27)

Total interest expense

3,253

3,926

(17)

4,046

(20)

Net interest income

22,417

21,323

5

21,875

2

Provision for loan losses

6,471

6,257

3

765

746

Net interest income after provision for loan losses

15,946

15,066

6

21,110

(24)

Noninterest Income

Service fees and charges

942

1,464

(36)

%

1,413

(33)

%

Bank card fees

1,127

1,137

(1)

1,212

(7)

Gain on sale of loans, net

642

297

116

248

159

Income from bank-owned life insurance

228

259

(12)

202

13

(Loss) gain on sale of assets, net

(13)

2

(750)

(327)

96

Other income

177

199

(11)

229

(23)

Total noninterest income

3,103

3,358

(8)

2,977

4

Noninterest Expense

Compensation and benefits

9,362

9,416

(1)

%

9,613

(3)

%

Occupancy

1,653

1,736

(5)

2,008

(18)

Marketing and advertising

160

298

(46)

308

(48)

Data processing and communication

1,760

1,819

(3)

1,596

10

Professional fees

255

213

20

218

17

Forms, printing and supplies

160

171

(6)

181

(12)

Franchise and shares tax

389

389

398

(2)

Regulatory fees

362

116

212

283

28

Foreclosed assets, net

145

17

753

40

263

Amortization of acquisition intangible

342

353

(3)

398

(14)

Provision for credit losses on unfunded lending commitments

542

729

(26)

Other expenses

865

889

(3)

909

(5)

Total noninterest expense

15,995

16,146

(1)

15,952

Income before income tax expense

3,054

2,278

34

8,135

(62)

Income tax expense

561

373

50

1,555

(64)

Net income

$

2,493

$

1,905

31

$

6,580

(62)

Earnings per share – basic

$

0.29

$

0.21

38

%

$

0.72

(60)

%

Earnings per share – diluted

$

0.29

$

0.21

38

$

0.71

(59)

Cash dividends declared per common share

$

0.22

$

0.22

%

$

0.21

5

%

 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION

(Unaudited)

For the Three Months Ended

(dollars in thousands, except per share data)

June 30, 2020

March 31, 2020

%
Change

June 30, 2019

%
Change

EARNINGS DATA

Total interest income

$

25,670

$

25,249

2

%

$

25,921

(1)

%

Total interest expense

3,253

3,926

(17)

4,046

(20)

Net interest income

22,417

21,323

5

21,875

2

Provision for loan losses

6,471

6,257

3

765

746

Total noninterest income

3,103

3,358

(8)

2,977

4

Total noninterest expense

15,995

16,146

(1)

15,952

Income tax expense

561

373

50

1,555

(64)

Net income

$

2,493

$

1,905

31

$

6,580

(62)

AVERAGE BALANCE SHEET DATA

Total assets

$

2,571,004

$

2,219,114

16

%

$

2,190,604

17

%

Total interest-earning assets

2,376,823

2,026,266

17

1,993,067

19

Total loans

1,934,627

1,735,224

11

1,665,841

16

Total interest-bearing deposits

1,548,619

1,381,698

12

1,368,694

13

Total interest-bearing liabilities

1,624,618

1,432,966

13

1,431,415

13

Total deposits

2,155,963

1,833,848

18

1,810,377

19

Total shareholders’ equity

313,650

315,607

(1)

311,308

1

SELECTED RATIOS (1)

Return on average assets

0.39

%

0.35

%

11

%

1.20

%

(68)

%

Return on average equity

3.20

2.43

32

8.48

(62)

Common equity ratio

11.73

13.85

(15)

14.12

(17)

Efficiency ratio (2)

62.67

65.42

(4)

64.19

(2)

Average equity to average assets

12.20

14.22

(14)

14.21

(14)

Tier 1 leverage capital ratio (3)

9.11

10.84

(16)

11.15

(18)

Total risk-based capital ratio (3)

14.83

14.88

15.33

(3)

Net interest margin (4)

3.75

4.18

(10)

4.36

(14)

SELECTED NON-GAAP RATIOS (1)

Tangible common equity ratio (5)

9.54

%

11.32

%

(16)

%

11.52

%

(17)

%

Return on average tangible common equity (6) 

4.45

3.50

27

11.25

(60)

PER SHARE DATA

Earnings per share – basic

$

0.29

$

0.21

38

%

$

0.72

(60)

%

Earnings per share – diluted

0.29

0.21

38

0.71

(59)

Book value at period end

34.50

34.35

33.20

4

Tangible book value at period end

27.39

27.28

26.29

4

Shares outstanding at period end

8,966,101

9,067,920

(1)

9,441,800

(5)

Weighted average shares outstanding

Basic

8,701,730

8,883,261

(2)

%

9,155,074

(5)

%

Diluted

8,730,437

8,927,448

(2)

9,207,880

(5)

(1)

With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods.

(2)

The efficiency ratio represents noninterest expense as a percentage of total revenues.  Total revenues is the sum of net interest income and noninterest income.

(3)

Estimated capital ratios are end of period ratios for the Bank only.

(4)

Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%.

(5)

Tangible common equity ratio is common shareholders’ equity less intangible assets divided by total assets less intangible assets. See «Non-GAAP Reconciliation» for additional information.

(6)

Return on average tangible common equity is net income plus amortization of core deposit intangible, net of taxes, divided by average common shareholders’ equity less average intangible assets. See «Non-GAAP Reconciliation» for additional information.

 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY CREDIT QUALITY INFORMATION

(Unaudited)

June 30, 2020

March 31, 2020

June 30, 2019

(dollars in thousands)

Originated

Acquired

Total

Originated

Acquired

Total

Originated

Acquired

Total

CREDIT QUALITY (1) (2)

Nonaccrual loans(3) 

$

14,126

$

10,966

$

25,092

$

15,235

$

11,686

$

26,921

$

15,027

$

10,945

$

25,972

Accruing loans past due 90 days and over

906

906

Total nonperforming loans

14,126

11,872

25,998

15,235

11,686

26,921

15,027

10,945

25,972

Foreclosed assets and ORE

1,060

914

1,974

978

1,628

2,606

87

1,893

1,980

Total nonperforming assets

15,186

12,786

27,972

16,213

13,314

29,527

15,114

12,838

27,952

Performing troubled debt restructurings

917

457

1,374

989

695

1,684

1,080

217

1,297

Total nonperforming assets and troubled debt restructurings

$

16,103

$

13,243

$

29,346

$

17,202

$

14,009

$

31,211

$

16,194

$

13,055

$

29,249

Nonperforming assets to total assets

1.06

%

1.31

%

1.26

%

Nonperforming loans to total assets

0.99

1.20

1.17

Nonperforming loans to total loans

1.32

1.55

1.53

Allowance for loan losses to nonperforming assets

120.92

96.49

61.67

Allowance for loan losses to nonperforming loans

130.10

105.83

66.38

Allowance for loan losses to total loans

1.72

1.64

1.02

Allowance for credit losses to total loans(4)

1.91

1.82

1.02

Year-to-date loan charge-offs

$

1,627

$

388

$

288

Year-to-date loan recoveries

221

120

24

Year-to-date net loan charge-offs

$

1,406

$

268

$

264

Annualized YTD net loan charge-offs to average loans

0.15

%

0.06

%

0.03

%

(1)

Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. Due to the adoption of CECL, PCD loans of $2.1 million and $2.3 million are included in nonperforming loans at June 30, 2020 and March 31, 2020, respectively. Prior to January 1, 2020, these loans were classified as PCI and excluded from nonperforming loans because they continued to earn interest income from the accretable yield at the pool level. With the adoption of CECL, the pools were discontinued and performance is based on contractual terms for individual loans.

(2)

It is our policy to cease accruing interest on loans 90 days or more past due. Nonperforming assets consist of nonperforming loans, foreclosed assets and surplus real estate (ORE).  Foreclosed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure. ORE consists of closed or unused bank buildings.

(3)

Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $8.1 million, $8.7 million and $9.9 million at June 30, 2020, March 31, 2020 and June 30, 2019, respectively. Acquired restructured loans placed on nonaccrual totaled $2.2 million, $2.8 million and $1.9 million at June 30, 2020, March 31, 2020 and June 30, 2019, respectively.

(4)

The allowance for credit losses includes $3.6 million and $3.1 million for unfunded lending commitments at June 30, 2020 and March 31, 2020, respectively. The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.

 

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SOURCE Home Bancorp, Inc.