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LAFAYETTE, La., Jan. 22, 2024 /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 fourth quarter of 2023. For the quarter, the Company reported net income of $9.4 million, or $1.17 per diluted common share ("diluted EPS"), down $369,000 from $9.8 million, or $1.22 diluted EPS, for the third quarter of 2023.
"Home Bank's strong performance in 2023 demonstrated our ability to successfully navigate economic cycles," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "During the fourth quarter, we grew both loans and deposits, improved credit and reported strong profitability. Net interest margin, which decreased slightly to 3.69%, appears to be stabilizing as our strong customer relationships have made it possible to retain deposits while still maintaining discipline on interest expenses. Tangible book value per share continued to increase and Home Bancorp ended the year with a Tangible Common Equity ("TCE") ratio of 8.7%. We are confident that our high-quality deposit base, expanding market, credit-focused culture, and robust capital levels have positioned us to sustain momentum in 2024 and beyond."
Fourth Quarter 2023 Highlights
Loans
Loans totaled $2.6 billion at December 31, 2023, up $12.5 million, or less than 1%, from September 30, 2023. The following table summarizes the changes in the Company's loan portfolio from September 30, 2023 to December 31, 2023.
December 31, | September 30, | Increase (Decrease) | ||||||
(dollars in thousands) | 2023 | 2023 | Amount | Percent | ||||
Real estate loans: | ||||||||
One- to four-family first mortgage | $ 433,401 | $ 432,092 | $ 1,309 | — % | ||||
Home equity loans and lines | 68,977 | 69,350 | (373) | (1) | ||||
Commercial real estate | 1,192,691 | 1,178,111 | 14,580 | 1 | ||||
Construction and land | 340,724 | 342,711 | (1,987) | (1) | ||||
Multi-family residential | 107,263 | 106,411 | 852 | 1 | ||||
Total real estate loans | 2,143,056 | 2,128,675 | 14,381 | 1 | ||||
Other loans: | ||||||||
Commercial and industrial | 405,659 | 407,189 | (1,530) | — | ||||
Consumer | 32,923 | 33,230 | (307) | (1) | ||||
Total other loans | 438,582 | 440,419 | (1,837) | — | ||||
Total loans | $ 2,581,638 | $ 2,569,094 | $ 12,544 | — % | ||||
The average loan yield was 6.08% for the fourth quarter of 2023, up 13 basis points from the third quarter of 2023. Commercial real estate was the primary driver for the loan growth during the fourth quarter of 2023. Commercial real estate loan growth for the current quarter was primarily in our Northshore and New Orleans markets.
Credit Quality and Allowance for Loan Losses
Nonperforming assets ("NPAs"), totaled $10.4 million, or 0.31% of total assets at December 31, 2023, down $1.9 million, or 16%, from $12.3 million, or 0.37% of total assets, at September 30, 2023. The Company recorded net loan charge-offs of $250,000 during the fourth quarter of 2023, compared to net loan recoveries of $132,000 for the third quarter of 2023.
The Company made a $665,000 provision to the allowance for loan losses in the fourth quarter of 2023 primarily due to loan growth and downward revisions to our loan prepayment estimates. For the year ended December 31, 2023, provisions to the allowance for loan losses totaled $2.3 million. At December 31, 2023, the allowance for loan losses totaled $31.5 million, or 1.22% of total loans, compared to $31.1 million, or 1.21% of total loans, at September 30, 2023. Changes in expected losses reflect various factors including the changing economic activity, potential mitigating effects of governmental stimulus, customer specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.
The following tables present the Company's loan portfolio by credit quality classification as of December 31, 2023 and September 30, 2023.
December 31, 2023 | ||||||||
(dollars in thousands) | Pass | SpecialMention | Substandard | Total | ||||
One- to four-family first mortgage | $ 429,964 | $ 868 | $ 2,569 | $ 433,401 | ||||
Home equity loans and lines | 68,770 | — | 207 | 68,977 | ||||
Commercial real estate | 1,178,060 | — | 14,631 | 1,192,691 | ||||
Construction and land | 329,622 | 5,874 | 5,228 | 340,724 | ||||
Multi-family residential | 103,760 | — | 3,503 | 107,263 | ||||
Commercial and industrial | 402,732 | 1,186 | 1,741 | 405,659 | ||||
Consumer | 32,634 | — | 289 | 32,923 | ||||
Total | $ 2,545,542 | $ 7,928 | $ 28,168 | $ 2,581,638 | ||||
September 30, 2023 | ||||||||
(dollars in thousands) | Pass | SpecialMention | Substandard | Total | ||||
One- to four-family first mortgage | $ 429,011 | $ 870 | $ 2,211 | $ 432,092 | ||||
Home equity loans and lines | 69,225 | — | 125 | 69,350 | ||||
Commercial real estate | 1,162,095 | 330 | 15,686 | 1,178,111 | ||||
Construction and land | 330,512 | 5,388 | 6,811 | 342,711 | ||||
Multi-family residential | 102,907 | — | 3,504 | 106,411 | ||||
Commercial and industrial | 402,252 | 2,458 | 2,479 | 407,189 | ||||
Consumer | 33,000 | — | 230 | 33,230 | ||||
Total | $ 2,529,002 | $ 9,046 | $ 31,046 | $ 2,569,094 | ||||
Investment Securities
The Company's investment securities portfolio totaled $435.0 million at December 31, 2023, an increase of $6.9 million, or 2%, from September 30, 2023. At December 31, 2023, the Company had a net unrealized loss position on its investment securities of $43.4 million, compared to a net unrealized loss of $63.4 million at September 30, 2023. The Company's investment securities portfolio had an effective duration of 4.2 years and 4.5 years at December 31, 2023 and September 30, 2023, respectively.
The following table summarizes the composition of the Company's investment securities portfolio at December 31, 2023.
(dollars in thousands) | AmortizedCost | Fair Value | ||
Available for sale: | ||||
U.S. agency mortgage-backed | $ 314,569 | $ 283,853 | ||
Collateralized mortgage obligations | 82,764 | 79,262 | ||
Municipal bonds | 53,891 | 46,674 | ||
U.S. government agency | 19,151 | 18,049 | ||
Corporate bonds | 6,982 | 6,088 | ||
Total available for sale | $ 477,357 | $ 433,926 | ||
Held to maturity: | ||||
Municipal bonds | $ 1,065 | $ 1,066 | ||
Total held to maturity | $ 1,065 | $ 1,066 |
Approximately 29% of the investment securities portfolio was pledged to secure public funds as of December 31, 2023. As of December 31, 2023 and September 30, 2023, the Company had $127.2 million and $127.9 million, respectively, of securities pledged to secure public deposits.
Deposits
Total deposits were $2.7 billion at December 31, 2023, up $73.1 million, or 3%, from September 30, 2023. Non-maturity deposits decreased $15.1 million, or 1% during the fourth quarter of 2023 to $2.0 billion. The following table summarizes the changes in the Company's deposits from September 30, 2023 to December 31, 2023.
December 31, | September 30, | Increase/(Decrease) | ||||||
(dollars in thousands) | 2023 | 2023 | Amount | Percent | ||||
Demand deposits | $ 744,424 | $ 785,448 | $ (41,024) | (5) % | ||||
Savings | 231,624 | 246,402 | (14,778) | (6) | ||||
Money market | 408,024 | 392,174 | 15,850 | 4 | ||||
NOW | 641,818 | 617,003 | 24,815 | 4 | ||||
Certificates of deposit | 644,734 | 556,457 | 88,277 | 16 | ||||
Total deposits | $ 2,670,624 | $ 2,597,484 | $ 73,140 | 3 % | ||||
The average rate on interest-bearing deposits increased 40 basis points from 1.84% for the third quarter of 2023 to 2.24% for the fourth quarter of 2023. At December 31, 2023, certificates of deposit maturing within the next 12 months totaled $544.5 million.
We obtain most of our deposits from individuals, small businesses and public funds in our market areas. The following table presents our deposits per customer type for the periods indicated.
December 31, 2023 | September 30, 2023 | |||
Individuals | 53 % | 52 % | ||
Small businesses | 38 | 39 | ||
Public funds | 7 | 7 | ||
Broker | 2 | 2 | ||
Total | 100 % | 100 % | ||
The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $748.6 million at December 31, 2023 and $755.5 million at September 30, 2023. Public funds in excess of the FDIC insurance limits are fully collateralized.
Net Interest Income
The net interest margin ("NIM") decreased 6 basis points from 3.75% for the third quarter of 2023 to 3.69% for the fourth quarter of 2023 primarily due to an increase in the average cost of interest-bearing liabilities, which was partially offset with an increase in the average yield on loans. The increase in deposit costs reflects the rise in market rates of interest as well as a migration to interest-bearing deposits from non-interest bearing deposits.
The average loan yield was 6.08% for the fourth quarter of 2023, up 13 basis points from the third quarter of 2023, primarily reflecting increased market rates of interest coupled with loan growth during the period.
Average other interest-earning assets were $57.5 million for the fourth quarter of 2023, up $3.5 million, or 6%, from the third quarter of 2023 primarily due to an increase in cash and cash equivalents.
Loan accretion income from acquired loans totaled $584,000 for the fourth quarter of 2023, down $50,000, or 8%, compared to the third quarter of 2023.
The average rate paid on total interest-bearing deposits was 2.24% for the fourth quarter of 2023, up 40 basis points from the third quarter of 2023, due to the increased market rates of interest.
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 | ||||||||||||
December 31, 2023 | September 30, 2023 | |||||||||||
(dollars in thousands) | AverageBalance | Interest | AverageYield/ Rate | AverageBalance | Interest | AverageYield/ Rate | ||||||
Interest-earning assets: | ||||||||||||
Loans receivable | $ 2,572,400 | $ 39,820 | 6.08 % | $ 2,538,218 | $ 38,490 | 5.95 % | ||||||
Investment securities (TE) | 481,322 | 2,837 | 2.37 | 495,219 | 2,939 | 2.39 | ||||||
Other interest-earning assets | 57,523 | 742 | 5.12 | 54,015 | 649 | 4.77 | ||||||
Total interest-earning assets | $ 3,111,245 | $ 43,399 | 5.49 % | $ 3,087,452 | $ 42,078 | 5.36 % | ||||||
Interest-bearing liabilities: | ||||||||||||
Deposits: | ||||||||||||
Savings, checking, and money market | $ 1,273,550 | $ 4,561 | 1.42 % | $ 1,256,885 | $ 3,791 | 1.20 % | ||||||
Certificates of deposit | 591,205 | 5,975 | 4.01 | 511,754 | 4,390 | 3.40 | ||||||
Total interest-bearing deposits | 1,864,755 | 10,536 | 2.24 | 1,768,639 | 8,181 | 1.84 | ||||||
Other borrowings | 5,539 | 53 | 3.80 | 5,539 | 53 | 3.80 | ||||||
Subordinated debt | 54,214 | 844 | 6.23 | 54,159 | 845 | 6.24 | ||||||
FHLB advances | 212,412 | 2,684 | 4.96 | 273,087 | 3,490 | 5.01 | ||||||
Total interest-bearing liabilities | $ 2,136,920 | $ 14,117 | 2.62 % | $ 2,101,424 | $ 12,569 | 2.37 % | ||||||
Noninterest-bearing deposits | $ 777,184 | $ 799,534 | ||||||||||
Net interest spread (TE) | 2.87 % | 2.99 % | ||||||||||
Net interest margin (TE) | 3.69 % | 3.75 % | ||||||||||
Noninterest Income
Noninterest income for the fourth quarter of 2023 totaled $3.5 million, down $921,000, or 21%, from the third quarter of 2023. The decrease was related primarily to gains on sale of loans (down $641,000 of which $628,000 was related to a reduction in SBA loan sales) and bank card fees (down $257,000 ) for the fourth quarter of 2023 compared to the third quarter of 2023.
Noninterest Expense
Noninterest expense for the fourth quarter of 2023 totaled $20.6 million, down $734,000, or 3%, compared to the third quarter of 2023. The decrease was primarily due to reductions in compensation and benefits (down $1.1 million) and franchise and shares tax (down $411,000), which were partially offset by increases in other expenses (up $450,000), provision for credit losses on unfunded commitments (up $140,000) and marketing and advertising (up $121,000).
Capital and Liquidity
At December 31, 2023, shareholders' equity totaled $367.4 million, up $22.1 million, or 6%, compared to $345.3 million at September 30, 2023. The increase was primarily due to the decrease in accumulated other comprehensive loss on available for sale investment securities and the Company's earnings of $9.4 million during the fourth quarter of 2023, which were partially offset by shareholder's dividends and repurchases of shares of the Company's common stock. The market value of the Company's available for sale securities at December 31, 2023 increased $20.0 million, or 32%, during the fourth quarter of 2023. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 10.98% and 14.23%, respectively, at December 31, 2023, compared to 10.71% and 13.73%, respectively, at September 30, 2023.
The following table summarizes the Company's primary and secondary sources of liquidity which were available at December 31, 2023.
(dollars in thousands) | December 31, 2023 | |
Cash and cash equivalents | $ 75,831 | |
Unencumbered investment securities, amortized cost | 70,467 | |
FHLB advance availability | 1,020,494 | |
Amounts available from unsecured lines of credit | 55,000 | |
Federal Reserve bank term funding program ** | 103,368 | |
Federal Reserve discount window availability | 500 | |
Total primary and secondary sources of available liquidity | $ 1,325,660 |
** $59.4 million of securities were delivered to the Federal Reserve in January. The Company borrowed $135.0 million on the Federal Reserve program in January 2024 to pay down advances at FHLB, which will increase availability at FHLB. |
Dividend and Share Repurchases
The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.25 per share payable on February 16, 2024, to shareholders of record as of February 5, 2024.
The Company repurchased 16,534 shares of its common stock during the fourth quarter of 2023 at an average price per share of $32.68 under the Company's 2020 Repurchase Plan. At December 31, 2023, an additional 436,446 shares remain eligible for purchase under the 2021 and 2023 Repurchase Plans. The book value per share and tangible book value per share of the Company's common stock was $45.04 and $34.45, respectively, at December 31, 2023.
Conference Call
Executive management will host a conference call to discuss fourth quarter 2023 results on Tuesday, January 23, 2024 at 10:30 a.m. CDT. Analysts, investors and interested parties may attend the conference call by dialing toll free 1.848.488.9160 (US Local/International) or 1.877.550.1858 (US Toll Free). The investor presentation can be accessed the day of the presentation on the Home Bancorp, Inc. website at https://home24bank.investorroom.com.
A replay of the conference call and a transcript of the call will be posted to the Investor Relations page of the Company's website, https://home24bank.investorroom.com.
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. 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 of non-GAAP information included herein to GAAP is presented below.
For the Three Months Ended | ||||||
(dollars in thousands, except per share data) | December 31, 2023 | September 30, 2023 | December 31, 2022 | |||
Reported net income | $ 9,385 | $ 9,754 | $ 10,776 | |||
Add: Core deposit intangible amortization, net tax | 298 | 307 | 350 | |||
Non-GAAP tangible income | $ 9,683 | $ 10,061 | $ 11,126 | |||
Total assets | $ 3,320,122 | $ 3,317,729 | $ 3,228,280 | |||
Less: Intangible assets | 86,372 | 86,749 | 87,973 | |||
Non-GAAP tangible assets | $ 3,233,750 | $ 3,230,980 | $ 3,140,307 | |||
Total shareholders' equity | $ 367,444 | $ 345,332 | $ 329,954 | |||
Less: Intangible assets | 86,372 | 86,749 | 87,973 | |||
Non-GAAP tangible shareholders' equity | $ 281,072 | $ 258,583 | $ 241,981 | |||
Return on average equity | 10.61 % | 11.04 % | 13.23 % | |||
Add: Average intangible assets | 3.92 | 4.11 | 5.52 | |||
Non-GAAP return on average tangible common equity | 14.53 % | 15.15 % | 18.75 % | |||
Common equity ratio | 11.07 % | 10.41 % | 10.22 % | |||
Less: Intangible assets | 2.38 | 2.41 | 2.51 | |||
Non-GAAP tangible common equity ratio | 8.69 % | 8.00 % | 7.71 % | |||
Book value per share | $ 45.04 | $ 42.30 | $ 39.82 | |||
Less: Intangible assets | 10.59 | 10.63 | 10.62 | |||
Non-GAAP tangible book value per share | $ 34.45 | $ 31.67 | $ 29.20 | |||
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, 2022, 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) | December 31, 2023 | September 30, 2023 | %Change | December 31, 2022 | ||||
Assets | ||||||||
Cash and cash equivalents | $ 75,831 | $ 84,520 | (10) % | $ 87,401 | ||||
Interest-bearing deposits in banks | 99 | 99 | — | 349 | ||||
Investment securities available for sale, at fair value | 433,926 | 427,019 | 2 | 486,518 | ||||
Investment securities held to maturity | 1,065 | 1,065 | — | 1,075 | ||||
Mortgage loans held for sale | 361 | 467 | (23) | 98 | ||||
Loans, net of unearned income | 2,581,638 | 2,569,094 | — | 2,430,750 | ||||
Allowance for loan losses | (31,537) | (31,123) | (1) | (29,299) | ||||
Total loans, net of allowance for loan losses | 2,550,101 | 2,537,971 | — | 2,401,451 | ||||
Office properties and equipment, net | 41,980 | 42,402 | (1) | 43,560 | ||||
Cash surrender value of bank-owned life insurance | 47,321 | 47,054 | 1 | 46,276 | ||||
Goodwill and core deposit intangibles | 86,372 | 86,749 | — | 87,973 | ||||
Accrued interest receivable and other assets | 83,066 | 90,383 | (8) | 73,579 | ||||
Total Assets | $ 3,320,122 | $ 3,317,729 | — | $ 3,228,280 | ||||
Liabilities | ||||||||
Deposits | $ 2,670,624 | $ 2,597,484 | 3 % | $ 2,633,181 | ||||
Other Borrowings | 5,539 | 5,539 | — | 5,539 | ||||
Subordinated debt, net of issuance cost | 54,241 | 54,187 | — | 54,013 | ||||
Federal Home Loan Bank advances | 192,713 | 283,826 | (32) | 176,213 | ||||
Accrued interest payable and other liabilities | 29,561 | 31,361 | (6) | 29,380 | ||||
Total Liabilities | 2,952,678 | 2,972,397 | (1) | 2,898,326 | ||||
Shareholders' Equity | ||||||||
Common stock | 81 | 81 | — % | 83 | ||||
Additional paid-in capital | 165,823 | 165,149 | — | 164,942 | ||||
Common stock acquired by benefit plans | (1,697) | (1,787) | 5 | (2,060) | ||||
Retained earnings | 234,619 | 227,649 | 3 | 206,296 | ||||
Accumulated other comprehensive loss | (31,382) | (45,760) | 31 | (39,307) | ||||
Total Shareholders' Equity | 367,444 | 345,332 | 6 | 329,954 | ||||
Total Liabilities and Shareholders' Equity | $ 3,320,122 | $ 3,317,729 | — | $ 3,228,280 | ||||
HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||
CONDENSED STATEMENTS OF INCOME | ||||||||||
(Unaudited) | ||||||||||
For the Three Months Ended | ||||||||||
(dollars in thousands, except per share data) | December 31, 2023 | September 30, 2023 | %Change | December 31, 2022 | %Change | |||||
Interest Income | ||||||||||
Loans, including fees | $ 39,820 | $ 38,490 | 3 % | $ 32,826 | 21 % | |||||
Investment securities | 2,837 | 2,939 | (3) | 3,214 | (12) | |||||
Other investments and deposits | 742 | 649 | 14 | 555 | 34 | |||||
Total interest income | 43,399 | 42,078 | 3 | 36,595 | 19 | |||||
Interest Expense | ||||||||||
Deposits | 10,536 | 8,181 | 29 % | 1,949 | 441 % | |||||
Other borrowings | 53 | 53 | — | 53 | — | |||||
Subordinated debt expense | 844 | 845 | — | 851 | (1) | |||||
Federal Home Loan Bank advances | 2,684 | 3,490 | (23) | 456 | 489 | |||||
Total interest expense | 14,117 | 12,569 | 12 | 3,309 | 327 | |||||
Net interest income | 29,282 | 29,509 | (1) | 33,286 | (12) | |||||
Provision for loan losses | 665 | 351 | 89 | 1,987 | (67) | |||||
Net interest income after provision for loan losses | 28,617 | 29,158 | (2) | 31,299 | (9) | |||||
Noninterest Income | ||||||||||
Service fees and charges | 1,235 | 1,277 | (3) % | 1,198 | 3 % | |||||
Bank card fees | 1,646 | 1,903 | (14) | 1,566 | 5 | |||||
Gain on sale of loans, net | 46 | 687 | (93) | 22 | 109 | |||||
Income from bank-owned life insurance | 267 | 265 | 1 | 257 | 4 | |||||
Loss on sale of assets, net | (7) | — | — | 9 | (178) | |||||
Other income | 291 | 267 | 9 | 287 | 1 | |||||
Total noninterest income | 3,478 | 4,399 | (21) | 3,339 | 4 | |||||
Noninterest Expense | ||||||||||
Compensation and benefits | 11,401 | 12,492 | (9) % | 12,880 | (11) % | |||||
Occupancy | 2,467 | 2,410 | 2 | 2,261 | 9 | |||||
Marketing and advertising | 759 | 638 | 19 | 550 | 38 | |||||
Data processing and communication | 2,423 | 2,496 | (3) | 2,295 | 6 | |||||
Professional fees | 465 | 402 | 16 | 392 | 19 | |||||
Forms, printing and supplies | 195 | 195 | — | 182 | 7 | |||||
Franchise and shares tax | 131 | 542 | (76) | 693 | (81) | |||||
Regulatory fees | 589 | 511 | 15 | 511 | 15 | |||||
Foreclosed assets, net | 43 | 99 | (57) | 30 | 43 | |||||
Amortization of acquisition intangible | 377 | 389 | (3) | 443 | (15) | |||||
Provision for credit losses on unfunded lending commitments | 140 | — | — | (170) | 182 | |||||
Other expenses | 1,614 | 1,164 | 39 | 1,114 | 45 | |||||
Total noninterest expense | 20,604 | 21,338 | (3) | 21,181 | (3) | |||||
Income before income tax expense | 11,491 | 12,219 | (6) | 13,457 | (15) | |||||
Income tax expense | 2,106 | 2,465 | (15) | 2,681 | (21) | |||||
Net income | $ 9,385 | $ 9,754 | (4) | $ 10,776 | (13) | |||||
Earnings per share - basic | $ 1.18 | $ 1.22 | (3) % | $ 1.33 | (11) % | |||||
Earnings per share - diluted | $ 1.17 | $ 1.22 | (4) | $ 1.32 | (11) | |||||
Cash dividends declared per common share | $ 0.25 | $ 0.25 | — % | $ 0.24 | 4 % | |||||
HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||
SUMMARY FINANCIAL INFORMATION | ||||||||||
(Unaudited) | ||||||||||
For the Three Months Ended | ||||||||||
(dollars in thousands, except per share data) | December 31, 2023 | September 30, 2023 | %Change | December 31, 2022 | %Change | |||||
EARNINGS DATA | ||||||||||
Total interest income | $ 43,399 | $ 42,078 | 3 % | $ 36,595 | 19 % | |||||
Total interest expense | 14,117 | 12,569 | 12 | 3,309 | 327 | |||||
Net interest income | 29,282 | 29,509 | (1) | 33,286 | (12) | |||||
Provision for loan losses | 665 | 351 | 89 | 1,987 | (67) | |||||
Total noninterest income | 3,478 | 4,399 | (21) | 3,339 | 4 | |||||
Total noninterest expense | 20,604 | 21,338 | (3) | 21,181 | (3) | |||||
Income tax expense | 2,106 | 2,465 | (15) | 2,681 | (21) | |||||
Net income | $ 9,385 | $ 9,754 | (4) | $ 10,776 | (13) | |||||
AVERAGE BALANCE SHEET DATA | ||||||||||
Total assets | $ 3,299,069 | $ 3,281,093 | 1 % | $ 3,173,676 | 4 % | |||||
Total interest-earning assets | 3,111,245 | 3,087,452 | 1 | 2,986,266 | 4 | |||||
Total loans | 2,572,400 | 2,538,218 | 1 | 2,374,065 | 8 | |||||
PPP loans | 5,643 | 5,869 | (4) | 6,883 | (18) | |||||
Total interest-bearing deposits | 1,864,755 | 1,768,639 | 5 | 1,769,966 | 5 | |||||
Total interest-bearing liabilities | 2,136,920 | 2,101,424 | 2 | 1,884,109 | 13 | |||||
Total deposits | 2,641,939 | 2,568,173 | 3 | 2,707,823 | (2) | |||||
Total shareholders' equity | 350,898 | 350,436 | — | 323,102 | 9 | |||||
PER SHARE DATA | ||||||||||
Earnings per share - basic | $ 1.18 | $ 1.22 | (3) % | $ 1.33 | (11) % | |||||
Earnings per share - diluted | 1.17 | 1.22 | (4) | 1.32 | (11) | |||||
Book value at period end | 45.04 | 42.30 | 6 | 39.82 | 13 | |||||
Tangible book value at period end | 34.45 | 31.67 | 9 | 29.20 | 18 | |||||
Shares outstanding at period end | 8,158,281 | 8,163,655 | — | 8,286,084 | (2) | |||||
Weighted average shares outstanding | ||||||||||
Basic | 7,978,160 | 8,006,226 | — % | 8,070,734 | (1) % | |||||
Diluted | 8,008,362 | 8,038,606 | — | 8,119,481 | (1) | |||||
SELECTED RATIOS (1) | ||||||||||
Return on average assets | 1.13 % | 1.18 % | (4) % | 1.35 % | (16) % | |||||
Return on average equity | 10.61 | 11.04 | (4) | 13.23 | (20) | |||||
Common equity ratio | 11.07 | 10.41 | 6 | 10.22 | 8 | |||||
Efficiency ratio (2) | 62.89 | 62.93 | — | 57.83 | 9 | |||||
Average equity to average assets | 10.64 | 10.68 | — | 10.18 | 5 | |||||
Tier 1 leverage capital ratio (3) | 10.98 | 10.71 | 3 | 10.43 | 5 | |||||
Total risk-based capital ratio (3) | 14.23 | 13.73 | 4 | 13.63 | 4 | |||||
Net interest margin (4) | 3.69 | 3.75 | (2) | 4.38 | (16) | |||||
SELECTED NON-GAAP RATIOS (1) | ||||||||||
Tangible common equity ratio (5) | 8.69 % | 8.00 % | 9 % | 7.71 % | 13 % | |||||
Return on average tangible common equity (6) | 14.53 | 15.15 | (4) | 18.75 | (23) | |||||
(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) | Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change. |
(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) | ||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||||||||||||
(dollars in thousands) | Acquired | Originated | Total | Acquired | Originated | Total | Acquired | Originated | Total | |||||||||
CREDIT QUALITY (1) | ||||||||||||||||||
Nonaccrual loans (2) | $ 3,791 | $ 5,023 | $ 8,814 | $ 3,905 | $ 8,001 | $ 11,906 | $ 6,177 | $ 4,336 | $ 10,513 | |||||||||
Accruing loans past due 90 days and over | — | — | — | — | 43 | 43 | — | 2 | 2 | |||||||||
Total nonperforming loans | 3,791 | 5,023 | 8,814 | 3,905 | 8,044 | 11,949 | 6,177 | 4,338 | 10,515 | |||||||||
Foreclosed assets and ORE | 80 | 1,495 | 1,575 | 141 | 221 | 362 | 310 | 151 | 461 | |||||||||
Total nonperforming assets | 3,871 | 6,518 | 10,389 | 4,046 | 8,265 | 12,311 | 6,487 | 4,489 | 10,976 | |||||||||
Performing troubled debt restructurings | — | — | — | — | — | — | 1,605 | 4,600 | 6,205 | |||||||||
Total nonperforming assets and troubled debt restructurings | $ 3,871 | $ 6,518 | $ 10,389 | $ 4,046 | $ 8,265 | $ 12,311 | $ 8,092 | $ 9,089 | $ 17,181 | |||||||||
Nonperforming assets to total assets | 0.31 % | 0.37 % | 0.34 % | |||||||||||||||
Nonperforming loans to total assets | 0.27 | 0.36 | 0.33 | |||||||||||||||
Nonperforming loans to total loans | 0.34 | 0.47 | 0.43 | |||||||||||||||
(1) | 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 other 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. |
(2) | Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $3.1 million at December 31, 2022. Acquired restructured loans placed on nonaccrual totaled $3.7 million at December 31, 2022. With the adoption of ASU 2022-02, effective January 1, 2023, TDR accounting has been eliminated. |
HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||
SUMMARY CREDIT QUALITY INFORMATION - CONTINUED | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||||||||||||
CollectivelyEvaluated | IndividuallyEvaluated | Total | CollectivelyEvaluated | IndividuallyEvaluated | Total | CollectivelyEvaluated | IndividuallyEvaluated | Total | ||||||||||
ALLOWANCE FOR CREDIT LOSSES | ||||||||||||||||||
One- to four-family first mortgage | $ 3,255 | $ — | $ 3,255 | $ 3,320 | $ — | $ 3,320 | $ 2,883 | $ — | $ 2,883 | |||||||||
Home equity loans and lines | 688 | — | 688 | 742 | — | 742 | 624 | — | 624 | |||||||||
Commercial real estate | 14,604 | 201 | 14,805 | 14,185 | 230 | 14,415 | 13,264 | 550 | 13,814 | |||||||||
Construction and land | 5,292 | 123 | 5,415 | 5,123 | — | 5,123 | 4,680 | — | 4,680 | |||||||||
Multi-family residential | 474 | — | 474 | 523 | — | 523 | 572 | — | 572 | |||||||||
Commercial and industrial | 6,071 | 95 | 6,166 | 6,161 | 105 | 6,266 | 5,853 | 171 | 6,024 | |||||||||
Consumer | 734 | — | 734 | 734 | — | 734 | 702 | — | 702 | |||||||||
Total allowance for loan losses | $ 31,118 | $ 419 | $ 31,537 | $ 30,788 | $ 335 | $ 31,123 | $ 28,578 | $ 721 | $ 29,299 | |||||||||
Unfunded lending commitments(3) | 2,594 | — | 2,594 | 2,454 | — | 2,454 | 2,093 | — | 2,263 | |||||||||
Total allowance for credit losses | $ 33,712 | $ 419 | $ 34,131 | $ 33,242 | $ 335 | $ 33,577 | $ 30,671 | $ 721 | $ 2,093 | |||||||||
Allowance for loan losses to nonperforming assets | 303.56 % | 252.81 % | 266.94 % | |||||||||||||||
Allowance for loan losses to nonperforming loans | 357.81 % | 260.47 % | 278.64 % | |||||||||||||||
Allowance for loan losses to total loans | 1.22 % | 1.21 % | 1.21 % | |||||||||||||||
Allowance for credit losses to total loans | 1.32 % | 1.31 % | 1.29 % | |||||||||||||||
Year-to-date loan charge-offs | $ 471 | $ 148 | $ 1,398 | |||||||||||||||
Year-to-date loan recoveries | 368 | 296 | 704 | |||||||||||||||
Year-to-date net loan (charge-offs) recoveries | $ (103) | $ 148 | $ (694) | |||||||||||||||
Annualized YTD net loan (charge-offs) recoveries to average loans | — % | 0.01 % | 0.03 % | |||||||||||||||
(3) 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.
