EX-99.1 2 a2020q4earningsrelease.htm EX-99.1 Document

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For further information contact:
John W. Bordelon, Chairman of the Board, President and CEO
(337) 237-1960


Release Date:January 26, 2021
For Immediate Release

HOME BANCORP ANNOUNCES 2020 FOURTH QUARTER RESULTS
AND DECLARES QUARTERLY DIVIDEND

Lafayette, Louisiana – 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 2020. For the quarter, the Company reported net income of $11.6 million, or $1.36 per diluted common share (“diluted EPS”), up $2.8 million from $8.8 million, or $1.01 diluted EPS, for the third quarter of 2020.

“2020 was a very challenging year for the Company and our customers with the impact of the COVID-19 pandemic and economic crisis”, said John W. Bordelon, Chairman, President and Chief Executive Officer of the Company and the Bank. “The Bank remains well positioned with the reserve builds we made in the first half of 2020 to withstand potential losses given the impact of the ongoing COVID-19 pandemic on economic conditions and credit quality in our markets.”

“I am proud of the commitment by our employees to serve our communities and remain focused on loan and deposit growth in this challenging environment. They are ready to assist customers in the second round of the Paycheck Protection Program.”

“Our customers have proven to be resilient during troubling times and we will weather the storm together.”

COVID-19 Response

Banking operations remain unencumbered by state and local government COVID-19 restrictions. However, we have adapted to protect our employees and customers by working remotely, enhancing cleaning procedures, and enacting several other measures to reduce the risk of transmission of the virus. State government imposed COVID-19 restrictions continue to be in place within our Louisiana and Mississippi markets. The restrictions primarily place limits on capacity and hours of operation of certain businesses.

During the second and third quarters of 2020, the Company funded approximately 3,072 loans totaling $262.2 million under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"). At December 31, 2020, the total recorded net investment in PPP loans was $221.2 million, of which approximately 2,495 loans with an aggregate outstanding balance of $70.5 million were for amounts of $150,000 or less.

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 third quarter Form 10-Q (as of September 30, 2020), $70.2 million, or 4% of total loans, were under deferral agreements. As of December 31, 2020, the level of deferrals decreased to $36.0 million, or 2% of total loans. The level of COVID-19 related deferrals formerly totaled $558.8 million, or 28% of total loans, at June 30, 2020. Of the loans that have exited deferral agreements, $469.2 million, or 98%, were current and performing as of December 31, 2020.

    
Fourth Quarter 2020 Highlights

•Net income totaled $11.6 million, up $2.8 million, or 32%, from the prior quarter primarily due to a $1.5 million increase in interest income on loans and the release of $1.3 million in the allowance for credit losses on unfunded lending commitments.

•Loan income from the recognition of deferred PPP lender fees totaled $2.2 million, up $1.1 million from the prior quarter. Loan accretion income from acquired loans totaled $1.7 million, up $847,000 compared to the prior quarter.

•A revision to the Company's estimate of credit loss on unfunded lending commitments led to a release of $1.3 million in reserves through noninterest expense and a $740,000 (net of tax) increase to retained earnings to adjust the impact of CECL adoption.

•Loans totaled $2.0 billion at December 31, 2020, up $24.7 million, or 5% annualized, from September 30, 2020. Excluding PPP loans, loan growth during the same comparative period was up $57.9 million, or 14% annualized.

•For the second consecutive quarter, the Company recorded no provision for loan losses. In light of our reserve builds during the first half of 2020, no additional provisions were made.

•The allowance for loan losses totaled $33.0 million, or 1.66% of total loans, at December 31, 2020. The allowance for credit losses ("ACL"), which includes the allowance for unfunded lending commitments, totaled $34.4 million, or 1.74% of total loans, at December 31, 2020. Excluding PPP loans, the ratio of allowance for loan losses to total loans and the ratio for allowance for credit losses was 1.87% and 1.96%, respectively, at such date.

•Nonperforming assets totaled $20.0 million, or 0.77% of total assets, down $4.9 million, or 20%, from September 30, 2020 primarily due to pay-downs on nonaccrual loans.

•Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.68% and 15.18% at December 31, 2020, compared to 9.44% and 15.29% at September 30, 2020.

•The net interest margin was 4.11% for the fourth quarter of 2020, up 29 basis points from the third quarter of 2020 primarily due to an increase in interest income on loans and further aided by a decrease in the cost of deposits.

•The average yield on total interest-bearing deposits was 0.50% for the fourth quarter of 2020, down 10 basis points from the third quarter of 2020.

    
Loans

Loans totaled $2.0 billion at December 31, 2020, up $24.7 million, or 1%, from September 30, 2020. The following table summarizes the changes in the Company’s loan portfolio from September 30, 2020 to December 31, 2020.





December 31,September 30,Increase (Decrease)
(dollars in thousands)20202020AmountPercent
Real estate loans:




One- to four-family first mortgage$395,638 $409,282 $(13,644)(3)%
Home equity loans and lines67,700 67,766 (66)— 
Commercial real estate750,623 707,638 42,985 6 
Construction and land221,823 201,575 20,248 10 
Multi-family residential87,332 86,619 713 1 
Total real estate loans1,523,116 1,472,880 50,236 3 
Other loans:



Commercial and industrial417,926 443,480 (25,554)(6)
Consumer38,912 38,937 (25)— 
Total other loans456,838 482,417 (25,579)(5)
Total loans$1,979,954 $1,955,297 $24,657 1 %


During the fourth quarter of 2020, substantial commercial real estate and construction and land loan growth was partially offset by pay-downs of commercial and industrial loans and residential mortgages. The change in commercial and industrial loans included a decrease in PPP loans of $33.3 million, or 13%, from September 30, 2020. Residential mortgages declined primarily due to refinances as borrowers sought to acquire lower interest rates.

Commercial real estate ("CRE") loan growth was fairly evenly distributed across our major Louisiana markets and was primarily attributable to non-owner-occupied loans to borrowers outside of industry sectors that have been subject to increased monitoring during the COVID-19 pandemic. At December 31, 2020, CRE loans within our Acadiana and New Orleans markets accounted for approximately 65% of our total commercial real estate portfolio.

Construction and land ("C&D") loan growth was spread across our New Orleans, Acadiana and Baton Rouge markets and was primarily driven by non-residential construction projects. At December 31, 2020, C&D loans within our Acadiana, New Orleans, and Northshore markets accounted for approximately 70% of our total construction and land portfolio.






    
Credit Quality and Allowance for Credit Losses

Nonperforming assets (“NPAs”), totaled $20.0 million, or 0.77% of total assets at December 31, 2020, down $4.9 million, or 20%, from $24.8 million, or 0.96% of total assets, at September 30, 2020.

The Company recorded net loan charge-offs of $39,000 during the fourth quarter of 2020, compared to net loan charge-offs of $821,000 for the third quarter of 2020.

At December 31, 2020, loans under interest and/or principal payment deferral agreements due to the COVID-19 crisis totaled $36.0 million, or 2% of total loans, down from $70.2 million, or 4% of total loans, as of September 30, 2020. Of the loans that have exited deferral agreements, $469.2 million, or 98%, were current and performing as of December 31, 2020.

The Company recorded no provision for loan losses for the fourth quarter of 2020. Upon review of our allowance for loan losses in light of, among other factors, our reserve builds during the first half of 2020, we determined that no additional provision was required during the quarter in order to reflect the expected losses for the full lives of the loans in our portfolio. The provision for loan losses for the year ended December 31, 2020 totaled $12.7 million, up $9.7 million from the prior year. 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.

In addition to the allowance for loan losses, our allowance for credit losses includes an allowance for unfunded lending commitments. The allowance for unfunded lending commitments amounted to $1.4 million at December 31, 2020 compared to $3.6 million at September 30, 2020. During the fourth quarter of 2020, we revised our estimate of losses on unfunded lending commitments which resulted in an aggregate release of $2.2 million of this allowance. Of the $2.2 million release of the allowance for unfunded lending commitments, $1.3 million was recognized as a reduction of non-interest expense and $940,000 ($740,000 net of taxes) was recognized as an increase to retained earnings.

The following table provides a summary of the loan portfolio and related reserves at December 31, 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.

(dollars in thousands)Total LoansPPP LoansTotal ACLACL to
Total Loans		ACL to
Total Non-PPP Loans
December 31, 2020
Retail CRE$190,085 $— $6,641 3.49 %3.49 %
Hotels and short-term rentals103,875 3,587 5,754 5.54 5.74 
Restaurants and bars92,789 30,990 3,106 3.35 5.03 
Energy31,304 — 1,638 5.23 5.23 
Credit cards4,012 — 403 10.04 10.04 
Other loans1,557,889 186,643 15,421 0.99 1.12 
Total$1,979,954 $221,220 $32,963 1.66 %1.87 %
Unfunded lending commitments(1)
— — 1,425 — — 
Total$1,979,954 $221,220 $34,388 1.74 %1.96 %
(1)At December 31, 2020, the allowance of $1.4 million related to unfunded lending commitments of $336.9 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 December 31, 2020.
(dollars in thousands)Recorded Investment
Available for sale

U.S. agency mortgage-backed
$142,812 
Collateralized mortgage obligations
75,620 
Municipal bonds
28,011 
U.S. government agency
6,255 
Corporate bonds
2,054 
Total available for sale254,752 
Held to Maturity

Municipal Bonds2,934 
Total investment securities$257,686 



Securities available for sale ("AFS") made up 99% of total investment securities and net unrealized gains on AFS securities totaled $6.5 million at December 31, 2020.


Deposits

Total deposits were $2.2 billion at December 31, 2020, up $6.3 million, or less than 1%, from September 30, 2020. The following table summarizes the changes in the Company’s deposits from September 30, 2020 to December 31, 2020.









December 31,

September 30,

Increase/(Decrease)
(dollars in thousands)

2020

2020

AmountPercent
Demand deposits$615,700 $629,345 $(13,645)(2)%
Savings250,165 242,849 7,316 3 
Money market333,078 336,310 (3,232)(1)
NOW646,085 620,081 26,004 4 
Certificates of deposit368,793 378,909 (10,116)(3)
Total deposits$2,213,821 $2,207,494 $6,327 — %


    
Net Interest Income

The net interest margin ("NIM") increased 29 basis points from 3.82% for the third quarter of 2020 to 4.11% for the fourth quarter of 2020 primarily due to an increase in loan income and further aided by a decrease in the cost of deposits.

The average loan yield was 5.20% for the fourth quarter of 2020, up 26 basis points from the third quarter of 2020. Loan income from the recognition of deferred PPP lender fees totaled $2.2 million during the fourth quarter of 2020, up $1.1 million, or 103%, compared to the third quarter of 2020. As a result, PPP loans positively impacted the average loan yield by 11 basis points and the NIM by 5 basis points during the fourth quarter of 2020. During the third quarter of 2020, PPP loans negatively impacted the average loan yield by 34 basis points and the NIM by 14 basis points. The receipt of forgiveness payments on PPP loans during the fourth quarter accelerated the recognition of deferred fees. Management anticipates this trend to continue into the first quarter of 2021 as the forgiveness process for PPP loans under $150,000 is expected to be expedited. At December 31, 2020, the total recorded net investment in PPP loans was $221.2 million, of which $70.5 million, or 32%, were for amounts of $150,000 or less. Unrecognized PPP lender fees totaled $5.4 million at December 31, 2020.

Loan accretion income from acquired loans totaled $1.7 million for the fourth quarter of 2020, up $847,000, or 100%, compared to the third quarter of 2020. During the fourth quarter, the Company received pay-downs on an acquired CRE and residential mortgage loans, which accelerated the accretion of discount into interest income on loans.

The average yield on total interest-bearing deposits was 0.50% for the fourth quarter of 2020, down 10 basis points from the third quarter of 2020.

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, 2020September 30, 2020
(dollars in thousands)Average BalanceInterestAverage Yield/ RateAverage BalanceInterestAverage Yield/ Rate
Interest-earning assets:






Loans receivable$1,984,969 $26,267 5.20 %$1,971,174 $24,769 4.94 %
Investment securities (TE)
246,547 1,002 1.66 252,314 967 1.56 
Other interest-earning assets182,833 99 0.22 170,957 106 0.25 
Total interest-earning assets$2,414,349 $27,368 4.46 %$2,394,445 $25,842 4.25 %







Interest-bearing liabilities:






Deposits:






Savings, checking, and money market$1,217,430 $970 0.32 %$1,195,455 $1,136 0.38 %
Certificates of deposit375,597 1,017 1.08 381,949 1,232 1.28 
Total interest-bearing deposits1,593,027 1,987 0.50 1,577,404 2,368 0.60 
Other borrowings5,539 53 3.81 5,539 53 3.81 
FHLB advances29,742 129 1.74 34,612 149 1.73 
Total interest-bearing liabilities$1,628,308 $2,169 0.53 %$1,617,555 $2,570 0.63 %







Net interest spread (TE)


3.93 %


3.62 %
Net interest margin (TE)


4.11 %


3.82 %


    
Noninterest Income

Noninterest income for the fourth quarter of 2020 was $4.1 million, up $256,000, or 7%, from the third quarter of 2020 due primarily to gains on the sale of loans (up $178,000) and other income (up $97,000). Other income increased primarily due to fees earned on a risk participation agreement entered into during the fourth quarter of 2020.


Noninterest Expense

Noninterest expense for the fourth quarter of 2020 totaled $14.7 million, down $1.4 million, or 9%, compared to the third quarter of 2020.

The Company released $2.2 million of the allowance for credit losses on unfunded lending commitments during the fourth quarter of 2020, reflecting, among other factors, refinement of our estimate of future funding rates on unfunded lending commitments. The release of a portion of the allowance for unfunded loan commitments reduced noninterest expense by $1.3 million during the fourth quarter of 2020, with the remaining $940,000 of the release ($740,000 net of taxes) being recorded as an increase in retained earnings.

Compensation and benefits expense was down $323,000 from the third quarter of 2020 primarily due to the absence of bonuses, which were paid during the third quarter.

Regulatory fees were down $153,000 from the third quarter of 2020 due to a decrease in the FDIC assessment for the fourth quarter. The Company's improved financial condition led to a more favorable assessment rate.

Other expenses were up $198,000 from the third quarter of 2020 primarily due to certain loan servicing fees and expenses.


    
Capital and Liquidity

The Company's tangible common equity ratio was 10.23% and 9.93% at December 31, 2020 and September 30, 2020, respectively. At December 31, 2020, the Bank's preliminary Tier 1 leverage capital ratio was 9.68%, up 24 basis points from September 30, 2020, and preliminary total risk-based capital ratio was 15.18%, down 11 basis points from September 30, 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.



December 31,
(dollars in thousands)

2020
Cash and cash equivalents$187,952 
Unpledged investment securities, amortized cost125,342 
FHLB advance availability 787,232 
Unsecured lines of credit55,000 
Federal Reserve discount window availability500 
Total primary and secondary liquidity$1,156,026 


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 February 19, 2021, to shareholders of record as of February 8, 2021.

The Company repurchased 91,612 shares of its common stock during the fourth quarter of 2020 at an average price per share of $26.23 under the Company's 2020 Repurchase Plan. An additional 300,080 shares remain eligible for purchase under the 2020 Repurchase Plan. The book value per share and tangible book value per share of the Company’s common stock was $36.82 and $29.60, respectively, at December 31, 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)December 31, 2020September 30, 2020December 31, 2019




Reported net income$11,585 $8,782 $6,606 
Add: Core deposit intangible amortization, net tax258 267 302 
Non-GAAP tangible income$11,843 $9,049 $6,908 




Total assets$2,591,850 $2,579,200 $2,200,465 
Less: Intangible assets63,112 63,439 64,472 
Non-GAAP tangible assets$2,528,738 $2,515,761 $2,135,993 




Total shareholders’ equity$321,842 $313,324 $316,329 
Less: Intangible assets63,112 63,439 64,472 
Non-GAAP tangible shareholders’ equity$258,730 $249,885 $251,857 




Total loans$1,979,954 $1,955,297 $1,714,361 
Less: PPP loans221,220 254,487 — 
Total loans excluding PPP loans$1,758,734 $1,700,810 $1,714,361 




Allowance for loan losses to total loans1.66 %1.69 %1.04 %
Less: PPP loans0.21 0.25 — 
Non-GAAP allowance for loan losses to total loans1.87 %1.94 %1.04 %
Return on average equity14.55 %11.17 %8.31 %
Add: Average intangible assets4.04 3.27 2.62 
Non-GAAP return on average tangible common equity18.59 %14.44 %10.93 %




Common equity ratio12.42 %12.15 %14.38 %
Less: Intangible assets2.19 2.22 2.59 
Non-GAAP tangible common equity ratio10.23 %9.93 %11.79 %




Book value per share$36.82 $35.48 $34.19 
Less: Intangible assets7.22 7.18 6.97 
Non-GAAP tangible book value per share$29.60 $28.30 $27.22 






    
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)December 31, 2020September 30, 2020% ChangeDecember 31, 2019
Assets
Cash and cash equivalents$187,952 $185,836 1 %$39,847 
Interest-bearing deposits in banks349 349 — 449 
Investment securities available for sale, at fair value254,752 251,578 1 257,321 
Investment securities held to maturity2,934 2,942 — 7,149 
Mortgage loans held for sale9,559 21,045 (55)6,990 
Loans, net of unearned income1,979,954 1,955,297 1 1,714,361 
Allowance for loan losses(32,963)(33,002)— (17,868)
Total loans, net of allowance for loan losses1,946,991 1,922,295 1 1,696,493 
Office properties and equipment, net45,497 45,696 — 46,425 
Cash surrender value of bank-owned life insurance40,334 40,184 — 39,466 
Goodwill and core deposit intangibles63,112 63,439 (1)64,472 
Accrued interest receivable and other assets40,370 45,836 (12)41,853 
Total Assets$2,591,850 $2,579,200 — $2,200,465 
Liabilities
Deposits$2,213,821 $2,207,494 — %$1,820,975 
Other Borrowings5,539 5,539 — 5,539 
Federal Home Loan Bank advances28,824 31,445 (8)40,620 
Accrued interest payable and other liabilities21,824 21,398 2 17,002 
Total Liabilities2,270,008 2,265,876 — 1,884,136 
Shareholders' Equity
Common stock87 88 (1)%93 
Additional paid-in capital164,988 165,522 — 168,545 
Common stock acquired by benefit plans(2,789)(2,880)3 (3,159)
Retained earnings154,282 145,373 6 150,158 
Accumulated other comprehensive income5,274 5,221 1 692 
Total Shareholders' Equity321,842 313,324 3 316,329 
Total Liabilities and Shareholders' Equity$2,591,850 $2,579,200 — $2,200,465 


    

HOMEBANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
For the Three Months Ended
(dollars in thousands, except per share data)December 31, 2020September 30, 2020% ChangeDecember 31, 2019% Change
Interest Income
Loans, including fees$26,267 $24,769 6 %$23,842 10 %
Investment securities1,002 967 4 1,341 (25)
Other investments and deposits
99 106 (7)261 (62)
Total interest income27,368 25,842 6 25,444 8 
Interest Expense
Deposits1,987 2,368 (16)%3,934 (49)%
Other borrowings53 53 — 54 (2)
Federal Home Loan Bank advances
129 149 (13)198 (35)
Total interest expense2,169 2,570 (16)4,186 (48)
Net interest income25,199 23,272 8 21,258 19 
Provision for loan losses— — — 713 (100)
Net interest income after provision for loan losses
25,199 23,272 8 20,545 23 
Noninterest Income
Service fees and charges1,117 1,123 (1)%1,544 (28)%
Bank card fees1,273 1,331 (4)1,102 16 
Gain on sale of loans, net1,082 904 20 316 242 
Income from bank-owned life insurance
276 231 19 238 16 
Loss on sale of assets, net— — — 1 (100)
Other income302 205 47 298 1 
Total noninterest income4,050 3,794 7 3,499 16 
Noninterest Expense
Compensation and benefits9,417 9,740 (3)%9,438 — %
Occupancy1,719 1,686 2 1,713 — 
Marketing and advertising386 288 34 579 (33)
Data processing and communication
1,913 1,851 3 1,829 5 
Professional fees187 197 (5)172 9 
Forms, printing and supplies154 140 10 169 (9)
Franchise and shares tax331 378 (12)248 33 
Regulatory fees373 526 (29)113 230 
Foreclosed assets, net181 162 12 228 (21)
Amortization of acquisition intangible
327 338 (3)382 (14)
Provision for credit losses on unfunded lending commitments(1,272)— — 
Other expenses1,008 810 24 881 14 
Total noninterest expense14,724 16,116 (9)15,752 (7)
Income before income tax expense
14,525 10,950 33 8,292 75 
Income tax expense2,940 2,168 36 1,686 74 
Net income$11,585 $8,782 32 $6,606 75 
Earnings per share - basic$1.37 $1.01 36 %$0.74 85 %
Earnings per share - diluted$1.36 $1.01 35 $0.73 86 
Cash dividends declared per common share$0.22 $0.22 — %$0.22 — %


    

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
(Unaudited)
For the Three Months Ended
(dollars in thousands, except per share data)December 31, 2020September 30, 2020% ChangeDecember 31, 2019% Change
EARNINGS DATA
Total interest income$27,368 $25,842 6 %$25,444 8 %
Total interest expense2,169 2,570 (16)4,186 (48)
Net interest income25,199 23,272 8 21,258 19 
Provision for loan losses— — — 713 (100)
Total noninterest income4,050 3,794 7 3,499 16 
Total noninterest expense14,724 16,116 (9)15,752 (7)
Income tax expense2,940 2,168 36 1,686 74 
Net income$11,585 $8,782 32 $6,606 75 
AVERAGE BALANCE SHEET DATA
Total assets$2,599,835 $2,582,239 1 %$2,219,049 17 %
Total interest-earning assets2,414,349 2,394,445 1 2,021,316 19 
Total loans1,984,969 1,971,174 1 1,712,035 16 
Total interest-bearing deposits1,593,027 1,577,404 1 1,384,250 15 
Total interest-bearing liabilities1,628,308 1,617,555 1 1,433,359 14 
Total deposits2,226,526 2,208,825 1 1,835,026 21 
Total shareholders' equity316,679 312,841 1 315,487 — 
SELECTED RATIOS (1)
Return on average assets1.77 %1.35 %31 %1.18 %50 %
Return on average equity14.55 11.17 30 8.31 75 
Common equity ratio12.42 12.15 2 14.38 (14)
Efficiency ratio (2)
50.34 59.54 (15)63.63 (21)
Average equity to average assets12.18 12.12 — 14.22 (14)
Tier 1 leverage capital ratio (3)
9.68 9.44 3 11.17 (13)
Total risk-based capital ratio (3)
15.18 15.29 (1)15.28 (1)
Net interest margin (4)
4.11 3.82 8 4.14 (1)

    
SELECTED NON-GAAP RATIOS (1)
Tangible common equity ratio (5)
10.23 %9.93 %3 %11.79 %(13)%
Return on average tangible common equity (6)
18.59 14.44 29 10.93 70 
PER SHARE DATA
Earnings per share - basic$1.37 $1.01 36 %$0.74 85 %
Earnings per share - diluted1.36 1.01 35 0.73 86 
Book value at period end36.82 35.48 4 34.19 8 
Tangible book value at period end29.60 28.30 5 27.22 9 
Shares outstanding at period end8,740,104 8,831,406 (1)9,252,418 (6)
Weighted average shares outstanding
Basic8,484,785 8,627,318 (2)%8,953,203 (5)%
Diluted8,508,740 8,651,066 (2)9,018,142 (6)
(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, 2020September 30, 2020December 31, 2019
(dollars in thousands)AcquiredOriginatedTotalAcquiredOriginatedTotalAcquiredOriginatedTotal
CREDIT QUALITY (1)(2)
Nonaccrual loans (3)
$8,748 $9,929 $18,677 $10,639 $12,204 $22,843 $9,758 $14,628 $24,386 
Accruing loans past due 90 days and over— 2 2 — 10 10 — — — 
Total nonperforming loans8,748 9,931 18,679 10,639 12,214 22,853 9,758 14,628 24,386 
Foreclosed assets and ORE880 422 1,302 1,029 956 1,985 2,363 1,793 4,156 
Total nonperforming assets9,628 10,353 19,981 11,668 13,170 24,838 12,121 16,421 28,542 
Performing troubled debt restructurings573 1,512 2,085 480 910 1,390 475 1,903 2,378 
Total nonperforming assets and troubled debt restructurings
$10,201 $11,865 $22,066 $12,148 $14,080 $26,228 $12,596 $18,324 $30,920 
Nonperforming assets to total assets0.77 %0.96 %1.30 %
Nonperforming loans to total assets 0.72 0.89 1.11 
Nonperforming loans to total loans 0.94 1.17 1.42 
Allowance for loan losses to nonperforming assets
164.97 132.87 62.60 
Allowance for loan losses to nonperforming loans
176.47 144.41 73.27 
Allowance for loan losses to total loans1.66 1.69 1.04 
Allowance for credit losses to total loans(4)
1.74 1.87 1.04 
Year-to-date loan charge-offs$2,601 $2,522 $1,577 
Year-to-date loan recoveries335 295 83 
Year-to-date net loan charge-offs$2,266 $2,227 $1,494 
Annualized YTD net loan charge-offs to
average loans		0.12 %0.16 %0.09 %
(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 $390,000 and $2.1 million are included in nonperforming loans at December 31, 2020 and September 30, 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 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.

(3)Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $6.5 million, $7.2 million and $7.6 million at December 31, 2020, September 30, 2020 and December 31, 2019, respectively. Acquired restructured loans placed on nonaccrual totaled $3.5 million, $1.2 million and $2.2 million at December 31, 2020, September 30, 2020 and December 31, 2019, respectively.

(4)The allowance for credit losses includes $1.4 million and $3.6 million for unfunded lending commitments at December 31, 2020 and September 30, 2020, respectively. The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.