LAFAYETTE, La., Jan. 27, 2025 /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 2024. For the quarter, the Company reported net income of $9.7 million, or $1.21 per diluted common share ("diluted EPS"), up $236,000, or 3%, from $9.4 million, or $1.18 diluted EPS, for the third quarter of 2024.
"We are very excited about the improvement in our NIM and our overall fourth quarter results," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "During the fourth quarter, we had strong loan growth with a modest increase in deposits and improvement in our nonperforming assets, which resulted in strong profitability. The net interest margin increased to 3.82% for the quarter primarily due to our ability to manage lower funding cost and obtain over 7% annualized loan growth. We are confident that our vibrant markets, credit-focused culture, and strong capital levels have positioned us to continue the momentum in 2025."
Fourth Quarter 2024 Highlights
- Loans totaled $2.7 billion at December 31, 2024, up $49.9 million, or 2% (an increase of 7% on an annualized basis), from September 30, 2024.
- Deposits totaled $2.8 billion at December 31, 2024, up $3.2 million, or less than 1% (less than 1% on an annualized basis), from September 30, 2024.
- Net interest income in the fourth quarter of 2024 totaled $31.6 million, up $1.2 million, or 4%, from the prior quarter.
- The net interest margin ("NIM") increased 11 basis points from 3.71% for the third quarter of 2024 to 3.82% in the fourth quarter of 2024 primarily due to lower funding cost and flat yield on interest earning assets.
- Nonperforming assets totaled $15.6 million, or 0.45% of total assets, at December 31, 2024, down $2.7 million, or 15%, from September 30, 2024, primarily due to improved performance of certain loans, including nonperforming loans, and paydowns.
- The Company recorded a $873,000 provision to the allowance for loan losses in the fourth quarter of 2024, compared to a $140,000 provision in the third quarter of 2024, primarily due to loan growth.
- Net loan charge-offs were $235,000 for the fourth quarter of 2024, compared to net loan charge-offs of $74,000 during the third quarter of 2024. Year-to-date net loan charge offs to average loans was 0.04% at December 31, 2024.
Loans
Loans totaled $2.7 billion at December 31, 2024, up $49.9 million, or 2%, from September 30, 2024. The following table summarizes the changes in the Company's loan portfolio from September 30, 2024 to December 31, 2024.
December 31, | September 30, | Increase (Decrease) | ||||||
(dollars in thousands) | 2024 | 2024 | Amount | Percent | ||||
Real estate loans: | ||||||||
One- to four-family first mortgage | $ 501,225 | $ 502,784 | $ (1,559) | - % | ||||
Home equity loans and lines | 79,097 | 80,935 | (1,838) | (2) | ||||
Commercial real estate | 1,158,781 | 1,143,152 | 15,629 | 1 | ||||
Construction and land | 352,263 | 329,787 | 22,476 | 7 | ||||
Multi-family residential | 178,568 | 169,443 | 9,125 | 5 | ||||
Total real estate loans | 2,269,934 | 2,226,101 | 43,833 | 2 | ||||
Other loans: | ||||||||
Commercial and industrial | 418,627 | 412,753 | 5,874 | 1 | ||||
Consumer | 29,624 | 29,432 | 192 | 1 | ||||
Total other loans | 448,251 | 442,185 | 6,066 | 1 | ||||
Total loans | $ 2,718,185 | $ 2,668,286 | $ 49,899 | 2 % | ||||
The average loan yield was 6.43% for the fourth quarter of 2024, which was unchanged from the third quarter of 2024. The flat loan yield was impacted by a few factors for the fourth quarter of 2024. 39% of the loan portfolio is adjustable therefore the yield began declining in mid-September 2024 as the Federal Reserve cut rates. The net loan yield was higher by approximately 3 bps, or $189,000, for the quarter due to a nonperforming relationship paying off during the quarter which was offset slightly from loans transferring to nonperforming. In addition, yields on loans were impacted by higher rates on new loans and loans paying off at lower rates. We experienced growth in construction and land, commercial real estate and multi-family loans for the current quarter across most of our markets.
Credit Quality and Allowance for Loan Losses
Nonperforming assets ("NPAs"), totaled $15.6 million, or 0.45% of total assets at December 31, 2024, down $2.7 million, or 15%, from $18.4 million, or 0.53% of total assets, at September 30, 2024. The Company recorded net loan charge-offs of $235,000 during the fourth quarter of 2024, compared to net loan charge-offs of $74,000 for the third quarter of 2024.
The Company made a $873,000 provision to the allowance for loan losses in the fourth quarter of 2024 primarily due to loan growth. For the year ended December 31, 2024, provisions to the allowance for loan losses totaled $2.4 million. At December 31, 2024, the allowance for loan losses totaled $32.9 million, or 1.21% of total loans, compared to $32.3 million, or 1.21% of total loans, at September 30, 2024. 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, 2024 and September 30, 2024.
December 31, 2024 | ||||||||
(dollars in thousands) | Pass | Special Mention | Substandard | Total | ||||
One- to four-family first mortgage | $ 493,368 | $ 823 | $ 7,034 | $ 501,225 | ||||
Home equity loans and lines | 78,818 | - | 279 | 79,097 | ||||
Commercial real estate | 1,140,240 | - | 18,541 | 1,158,781 | ||||
Construction and land | 347,039 | - | 5,224 | 352,263 | ||||
Multi-family residential | 177,638 | - | 930 | 178,568 | ||||
Commercial and industrial | 414,872 | - | 3,755 | 418,627 | ||||
Consumer | 29,597 | - | 27 | 29,624 | ||||
Total | $ 2,681,572 | $ 823 | $ 35,790 | $ 2,718,185 | ||||
September 30, 2024 | ||||||||
(dollars in thousands) | Pass | Special Mention | Substandard | Total | ||||
One- to four-family first mortgage | $ 494,180 | $ 859 | $ 7,745 | $ 502,784 | ||||
Home equity loans and lines | 80,729 | - | 206 | 80,935 | ||||
Commercial real estate | 1,125,331 | - | 17,821 | 1,143,152 | ||||
Construction and land | 323,751 | 308 | 5,728 | 329,787 | ||||
Multi-family residential | 168,513 | - | 930 | 169,443 | ||||
Commercial and industrial | 409,388 | 1,248 | 2,117 | 412,753 | ||||
Consumer | 29,302 | - | 130 | 29,432 | ||||
Total | $ 2,631,194 | $ 2,415 | $ 34,677 | $ 2,668,286 | ||||
Investment Securities
The Company's investment securities portfolio totaled $403.9 million at December 31, 2024, a decrease of $17.9 million, or 4%, from September 30, 2024. At December 31, 2024, the Company had a net unrealized loss position on its investment securities of $41.0 million, compared to a net unrealized loss of $32.2 million at September 30, 2024. The Company's investment securities portfolio had an effective duration of 3.9 years and 3.7 years at December 31, 2024 and September 30, 2024, respectively. The Company made securities purchases of $5.6 million during the fourth quarter of 2024, compared to $4.9 million during third quarter of 2024. No other purchases or sales of securities were made during the year.
The following table summarizes the composition of the Company's investment securities portfolio at December 31, 2024.
(dollars in thousands) | Amortized Cost | Fair Value | ||
Available for sale: | ||||
U.S. agency mortgage-backed | $ 291,351 | $ 261,873 | ||
Collateralized mortgage obligations | 73,931 | 71,389 | ||
Municipal bonds | 53,458 | 45,829 | ||
U.S. government agency | 18,079 | 17,128 | ||
Corporate bonds | 6,985 | 6,573 | ||
Total available for sale | $ 443,804 | $ 402,792 | ||
Held to maturity: | ||||
Municipal bonds | $ 1,065 | $ 1,065 | ||
Total held to maturity | $ 1,065 | $ 1,065 |
Approximately 33% of the investment securities portfolio was pledged as of December 31, 2024 to secure public deposits. In the fourth quarter of 2024, the Company paid off its $135.0 million loan with the Federal Reserve Bank Term Funding Program ("BTFP"). As of December 31, 2024 and September 30, 2024, the Company had $134.9 million and $142.0 million, respectively, of securities pledged to secure public deposits and none and $135.0 million, respectively, pledged to the BTFP borrowings.
Deposits
Total deposits were $2.8 billion at December 31, 2024, up $3.2 million, or less than 1%, from September 30, 2024. Non-maturity deposits decreased $6.4 million, or less than 1% during the fourth quarter of 2024 to $2.0 billion. The following table summarizes the changes in the Company's deposits from September 30, 2024 to December 31, 2024.
December 31, | September 30, | Increase/(Decrease) | ||||||
(dollars in thousands) | 2024 | 2024 | Amount | Percent | ||||
Demand deposits | $ 733,073 | $ 740,854 | $ (7,781) | (1) % | ||||
Savings | 210,977 | 215,815 | (4,838) | (2) | ||||
Money market | 457,483 | 452,456 | 5,027 | 1 | ||||
NOW | 645,246 | 644,061 | 1,185 | - | ||||
Certificates of deposit | 733,917 | 724,301 | 9,616 | 1 | ||||
Total deposits | $ 2,780,696 | $ 2,777,487 | $ 3,209 | - % | ||||
The average rate on interest-bearing deposits decreased 12 basis points from 2.78% for the third quarter of 2024 to 2.66% for the fourth quarter of 2024. At December 31, 2024, certificates of deposit maturing within the next 12 months totaled $693.3 million, or 94%, with 58% of the balance maturing in the first quarter of 2025.
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, 2024 | September 30, 2024 | |||
Individuals | 53 % | 52 % | ||
Small businesses | 37 | 38 | ||
Public funds | 7 | 7 | ||
Broker | 3 | 3 | ||
Total | 100 % | 100 % | ||
The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $813.6 million at December 31, 2024 and $818.7 million at September 30, 2024. Public funds in excess of the FDIC insurance limits are fully collateralized.
Net Interest Income
The net interest margin ("NIM") increased 11 basis points from 3.71% for the third quarter of 2024 to 3.82% for the fourth quarter of 2024 primarily due to a decline in the funding cost for average interest-bearing liabilities while the yield on average interest-earning assets remained unchanged.
The average cost of interest-bearing deposits decreased by 12 basis points in the fourth quarter of 2024 compared to the third quarter of 2024. The decrease in deposit costs primarily reflects the decline in certificate of deposit rates as they matured.
Average other interest-earning assets were $97.5 million for the fourth quarter of 2024, up $17.8 million, or 22%, from the third quarter of 2024 primarily due to an increase in the average balance of cash and cash equivalents.
Loan accretion income from acquired loans totaled $421,000 for the fourth quarter of 2024, down $31,000, or 7%, compared to the third quarter of 2024.
Average other borrowings were $107.8 million for the fourth quarter of 2024, down $32.8 million, 23%, from the third quarter of 2024 primarily due to the payoff of the BTFP loan, which was replaced with short-term FHLB advances.
The average rate paid on total interest-bearing deposits was 2.66% for the fourth quarter of 2024, down 12 basis points from the third quarter of 2024, due to the lower funding cost. The average rate paid on certificate of deposits was 4.33% for the fourth quarter of 2024, down 26 basis points from the third quarter of 2024.
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, 2024 | September 30, 2024 | |||||||||||
(dollars in thousands) | Average | Interest | Average | Average | Interest | Average | ||||||
Interest-earning assets: | ||||||||||||
Loans receivable | $ 2,686,188 | $ 43,978 | 6.43 % | $ 2,668,672 | $ 43,711 | 6.43 % | ||||||
Investment securities (TE) | 449,216 | 2,703 | 2.42 | 454,024 | 2,677 | 2.38 | ||||||
Other interest-earning assets | 97,492 | 1,123 | 4.58 | 79,668 | 991 | 4.95 | ||||||
Total interest-earning assets | $ 3,232,896 | $ 47,804 | 5.82 % | $ 3,202,364 | $ 47,379 | 5.82 % | ||||||
Interest-bearing liabilities: | ||||||||||||
Deposits: | ||||||||||||
Savings, checking, and money market | $ 1,311,815 | $ 5,721 | 1.73 % | $ 1,266,465 | $ 5,571 | 1.75 % | ||||||
Certificates of deposit | 723,764 | 7,885 | 4.33 | 722,717 | 8,337 | 4.59 | ||||||
Total interest-bearing deposits | 2,035,579 | 13,606 | 2.66 | 1,989,182 | 13,908 | 2.78 | ||||||
Other borrowings | 107,767 | 1,279 | 4.72 | 140,539 | 1,673 | 4.74 | ||||||
Subordinated debt | 54,427 | 848 | 6.23 | 54,374 | 844 | 6.21 | ||||||
FHLB advances | 52,926 | 485 | 3.63 | 56,743 | 572 | 3.99 | ||||||
Total interest-bearing liabilities | $ 2,250,699 | $ 16,218 | 2.87 % | $ 2,240,838 | $ 16,997 | 3.02 % | ||||||
Noninterest-bearing deposits | $ 754,133 | $ 741,386 | ||||||||||
Net interest spread (TE) | 2.95 % | 2.80 % | ||||||||||
Net interest margin (TE) | 3.82 % | 3.71 % | ||||||||||
Noninterest Income
Noninterest income for the fourth quarter of 2024 totaled $3.6 million, down $63,000, or 2%, from the third quarter of 2024. The decrease was related primarily to decreases in gains on sale of loans (down $133,000) and bank card fees (down $27,000), which were partially offset by increases in gains on sale of assets, net (up $49,000) and service fees and charges (up $43,000) for the fourth quarter of 2024 compared to the third quarter of 2024.
Noninterest Expense
Noninterest expense for the fourth quarter of 2024 totaled $22.4 million, up $97,000, or less than 1%, compared to the third quarter of 2024. The increase was primarily due to increases in marketing and advertising (up $285,000), compensation and benefits (up $256,000) and provision for credit losses on unfunded commitments (up $240,000), which were partially offset by decreases in occupancy expense (down $390,000), data processing and communications (down $120,000), other noninterest expense (down $120,000), franchise and shares taxes (down $88,000) and professional services (down $34,000).
Capital and Liquidity
At December 31, 2024, shareholders' equity totaled $396.1 million, up $2.6 million, or 1%, compared to $393.5 million at September 30, 2024. The increase was primarily due to the Company's earnings of $9.7 million during the fourth quarter of 2024, which were partially offset by an increase in accumulated other comprehensive loss on available for sale investment securities and 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, 2024 decreased $8.8 million, or 27%, during the fourth quarter of 2024. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 11.38% and 14.51%, respectively, at December 31, 2024, compared to 11.32% and 14.74%, respectively, at September 30, 2024.
The following table summarizes the Company's primary and secondary sources of liquidity which were available at December 31, 2024.
(dollars in thousands) | December 31, 2024 | |
Cash and cash equivalents | $ 98,548 | |
Unencumbered investment securities, amortized cost | 122,686 | |
FHLB advance availability | 1,088,068 | |
Amounts available from unsecured lines of credit | 55,000 | |
Federal Reserve discount window availability | 500 | |
Total primary and secondary sources of available liquidity | $ 1,364,802 |
Dividend and Share Repurchases
The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.27 per share payable on February 21, 2025, to shareholders of record as of February 10, 2025.
The Company repurchased 2,000 shares of its common stock during the fourth quarter of 2024 at an average price per share of $49.11. At December 31, 2024, an additional 311,812 shares remain eligible for purchase under the 2023 Repurchase Plan. The book value per share and tangible book value per share of the Company's common stock was $48.95 and $38.44, respectively, at December 31, 2024.
Conference Call
Executive management will host a conference call to discuss fourth quarter 2024 results on Tuesday, January 28, 2025 at 7:30 a.m. CDT. Analysts, investors and interested parties may attend the conference call by dialing toll free 1.646.357.8785 (US Local/International) or 1.800.836.8184 (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, | September 30, | December 31, | |||
Reported net income | $ 9,673 | $ 9,437 | $ 9,385 | |||
Add: Core deposit intangible amortization, net tax | 250 | 259 | 298 | |||
Non-GAAP tangible income | $ 9,923 | $ 9,696 | $ 9,683 | |||
Total assets | $ 3,443,668 | $ 3,441,990 | $ 3,320,122 | |||
Less: Intangible assets | 85,044 | 85,361 | 86,372 | |||
Non-GAAP tangible assets | $ 3,358,624 | $ 3,356,629 | $ 3,233,750 | |||
Total shareholders' equity | $ 396,088 | $ 393,453 | $ 367,444 | |||
Less: Intangible assets | 85,044 | 85,361 | 86,372 | |||
Non-GAAP tangible shareholders' equity | $ 311,044 | $ 308,092 | $ 281,072 | |||
Return on average equity | 9.71 % | 9.76 % | 10.61 % | |||
Add: Average intangible assets | 2.99 | 3.14 | 3.92 | |||
Non-GAAP return on average tangible common equity | 12.70 % | 12.90 % | 14.53 % | |||
Common equity ratio | 11.50 % | 11.43 % | 11.07 % | |||
Less: Intangible assets | 2.24 | 2.25 | 2.38 | |||
Non-GAAP tangible common equity ratio | 9.26 % | 9.18 % | 8.69 % | |||
Book value per share | $ 48.95 | $ 48.75 | $ 45.04 | |||
Less: Intangible assets | 10.51 | 10.58 | 10.59 | |||
Non-GAAP tangible book value per share | $ 38.44 | $ 38.17 | $ 34.45 | |||
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, 2023, describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for credit losses, 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, | September 30, | % | December 31, | ||||
Assets | ||||||||
Cash and cash equivalents | $ 98,548 | $ 135,877 | (27) % | $ 75,831 | ||||
Interest-bearing deposits in banks | - | - | - | 99 | ||||
Investment securities available for sale, at fair value | 402,792 | 420,723 | (4) | 433,926 | ||||
Investment securities held to maturity | 1,065 | 1,065 | - | 1,065 | ||||
Mortgage loans held for sale | 832 | 242 | 244 | 361 | ||||
Loans, net of unearned income | 2,718,185 | 2,668,286 | 2 | 2,581,638 | ||||
Allowance for loan losses | (32,916) | (32,278) | (2) | (31,537) | ||||
Total loans, net of allowance for loan losses | 2,685,269 | 2,636,008 | 2 | 2,550,101 | ||||
Office properties and equipment, net | 42,324 | 42,659 | (1) | 41,980 | ||||
Cash surrender value of bank-owned life insurance | 48,421 | 48,139 | 1 | 47,321 | ||||
Goodwill and core deposit intangibles | 85,044 | 85,361 | - | 86,372 | ||||
Accrued interest receivable and other assets | 79,373 | 71,916 | 10 | 83,066 | ||||
Total Assets | $ 3,443,668 | $ 3,441,990 | - | $ 3,320,122 | ||||
Liabilities | ||||||||
Deposits | $ 2,780,696 | $ 2,777,487 | - % | $ 2,670,624 | ||||
Other Borrowings | 5,539 | 140,539 | (96) | 5,539 | ||||
Subordinated debt, net of issuance cost | 54,459 | 54,402 | - | 54,241 | ||||
Federal Home Loan Bank advances | 175,546 | 38,410 | 357 | 192,713 | ||||
Accrued interest payable and other liabilities | 31,340 | 37,699 | (17) | 29,561 | ||||
Total Liabilities | 3,047,580 | 3,048,537 | - | 2,952,678 | ||||
Shareholders' Equity | ||||||||
Common stock | 81 | 81 | - % | 81 | ||||
Additional paid-in capital | 168,138 | 166,743 | 1 | 165,823 | ||||
Common stock acquired by benefit plans | (1,339) | (1,428) | 6 | (1,697) | ||||
Retained earnings | 259,190 | 251,692 | 3 | 234,619 | ||||
Accumulated other comprehensive loss | (29,982) | (23,635) | (27) | (31,382) | ||||
Total Shareholders' Equity | 396,088 | 393,453 | 1 | 367,444 | ||||
Total Liabilities and Shareholders' Equity | $ 3,443,668 | $ 3,441,990 | - | $ 3,320,122 | ||||
HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||
CONDENSED STATEMENTS OF INCOME | ||||||||||
(Unaudited) | ||||||||||
For the Three Months Ended | ||||||||||
(dollars in thousands, except per share data) | December 31, | September 30, | % | December 31, | % | |||||
Interest Income | ||||||||||
Loans, including fees | $ 43,978 | $ 43,711 | 1 % | $ 39,820 | 10 % | |||||
Investment securities | 2,703 | 2,677 | 1 | 2,837 | (5) | |||||
Other investments and deposits | 1,123 | 991 | 13 | 742 | 51 | |||||
Total interest income | 47,804 | 47,379 | 1 | 43,399 | 10 | |||||
Interest Expense | ||||||||||
Deposits | 13,606 | 13,908 | (2) % | 10,536 | 29 % | |||||
Other borrowings | 1,279 | 1,673 | (24) | 53 | 2313 | |||||
Subordinated debt expense | 848 | 844 | - | 844 | - | |||||
Federal Home Loan Bank advances | 485 | 572 | (15) | 2,684 | (82) | |||||
Total interest expense | 16,218 | 16,997 | (5) | 14,117 | 15 | |||||
Net interest income | 31,586 | 30,382 | 4 | 29,282 | 8 | |||||
Provision for loan losses | 873 | 140 | 524 | 665 | 31 | |||||
Net interest income after provision for loan losses | 30,713 | 30,242 | 2 | 28,617 | 7 | |||||
Noninterest Income | ||||||||||
Service fees and charges | 1,334 | 1,291 | 3 % | 1,235 | 8 % | |||||
Bank card fees | 1,586 | 1,613 | (2) | 1,646 | (4) | |||||
Gain on sale of loans, net | 62 | 195 | (68) | 46 | 35 | |||||
Income from bank-owned life insurance | 282 | 281 | - | 267 | 6 | |||||
Gain (loss) on sale of assets, net | 39 | (10) | 490 | (7) | 657 | |||||
Other income | 326 | 322 | 1 | 291 | 12 | |||||
Total noninterest income | 3,629 | 3,692 | (2) | 3,478 | 4 | |||||
Noninterest Expense | ||||||||||
Compensation and benefits | 13,314 | 13,058 | 2 % | 11,401 | 17 % | |||||
Occupancy | 2,342 | 2,732 | (14) | 2,467 | (5) | |||||
Marketing and advertising | 667 | 382 | 75 | 759 | (12) | |||||
Data processing and communication | 2,526 | 2,646 | (5) | 2,423 | 4 | |||||
Professional fees | 416 | 450 | (8) | 465 | (11) | |||||
Forms, printing and supplies | 214 | 188 | 14 | 195 | 10 | |||||
Franchise and shares tax | 400 | 488 | (18) | 131 | 205 | |||||
Regulatory fees | 483 | 493 | (2) | 589 | (18) | |||||
Foreclosed assets, net | 125 | 62 | 102 | 43 | 191 | |||||
Amortization of acquisition intangible | 317 | 328 | (3) | 377 | (16) | |||||
Provision for credit losses on unfunded commitments | 240 | - | - | 140 | 71 | |||||
Other expenses | 1,311 | 1,431 | (8) | 1,614 | (19) | |||||
Total noninterest expense | 22,355 | 22,258 | - | 20,604 | 8 | |||||
Income before income tax expense | 11,987 | 11,676 | 3 | 11,491 | 4 | |||||
Income tax expense | 2,314 | 2,239 | 3 | 2,106 | 10 | |||||
Net income | $ 9,673 | $ 9,437 | 3 | $ 9,385 | 3 | |||||
Earnings per share - basic | $ 1.22 | $ 1.19 | 3 % | $ 1.18 | 3 % | |||||
Earnings per share - diluted | $ 1.21 | $ 1.18 | 3 | $ 1.17 | 3 | |||||
Cash dividends declared per common share | $ 0.26 | $ 0.25 | 4 % | $ 0.25 | 4 % | |||||
HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||
SUMMARY FINANCIAL INFORMATION | ||||||||||
(Unaudited) | ||||||||||
For the Three Months Ended | ||||||||||
(dollars in thousands, except per share data) | December 31, | September 30, | % | December 31, | % | |||||
EARNINGS DATA | ||||||||||
Total interest income | $ 47,804 | $ 47,379 | 1 % | $ 43,399 | 10 % | |||||
Total interest expense | 16,218 | 16,997 | (5) | 14,117 | 15 | |||||
Net interest income | 31,586 | 30,382 | 4 | 29,282 | 8 | |||||
Provision for loan losses | 873 | 140 | 524 | 665 | 31 | |||||
Total noninterest income | 3,629 | 3,692 | (2) | 3,478 | 4 | |||||
Total noninterest expense | 22,355 | 22,258 | - | 20,604 | 8 | |||||
Income tax expense | 2,314 | 2,239 | 3 | 2,106 | 10 | |||||
Net income | $ 9,673 | $ 9,437 | 3 | $ 9,385 | 3 | |||||
AVERAGE BALANCE SHEET DATA | ||||||||||
Total assets | $ 3,439,925 | $ 3,405,083 | 1 % | $ 3,299,069 | 4 % | |||||
Total interest-earning assets | 3,232,896 | 3,202,364 | 1 | 3,111,245 | 4 | |||||
Total loans | 2,686,188 | 2,668,672 | 1 | 2,572,400 | 4 | |||||
PPP loans | 2,742 | 4,470 | (39) | 5,643 | (51) | |||||
Total interest-bearing deposits | 2,035,579 | 1,989,182 | 2 | 1,864,755 | 9 | |||||
Total interest-bearing liabilities | 2,250,699 | 2,240,838 | - | 2,136,920 | 5 | |||||
Total deposits | 2,789,712 | 2,730,568 | 2 | 2,641,939 | 6 | |||||
Total shareholders' equity | 396,163 | 384,518 | 3 | 350,898 | 13 | |||||
PER SHARE DATA | ||||||||||
Earnings per share - basic | $ 1.22 | $ 1.19 | 3 % | $ 1.18 | 3 % | |||||
Earnings per share - diluted | 1.21 | 1.18 | 3 | 1.17 | 3 | |||||
Book value at period end | 48.95 | 48.75 | - | 45.04 | 9 | |||||
Tangible book value at period end | 38.44 | 38.17 | 1 | 34.45 | 12 | |||||
Shares outstanding at period end | 8,091,522 | 8,070,539 | - | 8,158,281 | (1) | |||||
Weighted average shares outstanding | ||||||||||
Basic | 7,944,629 | 7,921,582 | - % | 7,978,160 | - % | |||||
Diluted | 7,993,852 | 7,966,957 | - | 8,008,362 | - | |||||
SELECTED RATIOS (1) | ||||||||||
Return on average assets | 1.12 % | 1.10 % | 2 % | 1.13 % | (1) % | |||||
Return on average equity | 9.71 | 9.76 | (1) | 10.61 | (8) | |||||
Common equity ratio | 11.50 | 11.43 | 1 | 11.07 | 4 | |||||
Efficiency ratio (2) | 63.48 | 65.32 | (3) | 62.89 | 1 | |||||
Average equity to average assets | 11.52 | 11.29 | 2 | 10.64 | 8 | |||||
Tier 1 leverage capital ratio (3) | 11.38 | 11.32 | 1 | 10.98 | 4 | |||||
Total risk-based capital ratio (3) | 14.51 | 14.74 | (2) | 14.23 | 2 | |||||
Net interest margin (4) | 3.82 | 3.71 | 3 | 3.69 | 4 | |||||
SELECTED NON-GAAP RATIOS (1) | ||||||||||
Tangible common equity ratio (5) | 9.26 % | 9.18 % | 1 % | 8.69 % | 7 % | |||||
Return on average tangible common equity (6) | 12.70 | 12.90 | (2) | 14.53 | (13) | |||||
(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, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||||||||
(dollars in thousands) | Acquired | Originated | Total | Acquired | Originated | Total | Acquired | Originated | Total | |||||||||
CREDIT QUALITY (1) | ||||||||||||||||||
Nonaccrual loans | $ 4,591 | $ 8,991 | $ 13,582 | $ 4,314 | $ 13,741 | $ 18,055 | $ 3,791 | $ 5,023 | $ 8,814 | |||||||||
Accruing loans past due 90 days and over | - | 16 | 16 | - | 34 | 34 | - | - | - | |||||||||
Total nonperforming loans | 4,591 | 9,007 | 13,598 | 4,314 | 13,775 | 18,089 | 3,791 | 5,023 | 8,814 | |||||||||
Foreclosed assets and ORE | 47 | 1,963 | 2,010 | 267 | - | 267 | 80 | 1,495 | 1,575 | |||||||||
Total nonperforming assets | 4,638 | 10,970 | 15,608 | 4,581 | 13,775 | 18,356 | 3,871 | 6,518 | 10,389 | |||||||||
Nonperforming assets to total assets | 0.45 % | 0.53 % | 0.31 % | |||||||||||||||
Nonperforming loans to total assets | 0.39 | 0.53 | 0.27 | |||||||||||||||
Nonperforming loans to total loans | 0.50 | 0.68 | 0.34 | |||||||||||||||
(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. |
HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||
SUMMARY CREDIT QUALITY INFORMATION - CONTINUED | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||||||||
Collectively | Individually | Total | Collectively | Individually | Total | Collectively | Individually | Total | ||||||||||
ALLOWANCE FOR CREDIT LOSSES | ||||||||||||||||||
One- to four-family first mortgage | $ 4,430 | $ - | $ 4,430 | $ 4,402 | $ - | $ 4,402 | $ 3,255 | $ - | $ 3,255 | |||||||||
Home equity loans and lines | 801 | - | 801 | 785 | - | 785 | 688 | - | 688 | |||||||||
Commercial real estate | 13,321 | 200 | 13,521 | 13,271 | 200 | 13,471 | 14,604 | 201 | 14,805 | |||||||||
Construction and land | 5,484 | - | 5,484 | 5,167 | - | 5,167 | 5,292 | 123 | 5,415 | |||||||||
Multi-family residential | 1,090 | - | 1,090 | 1,079 | - | 1,079 | 474 | - | 474 | |||||||||
Commercial and industrial | 6,613 | 248 | 6,861 | 6,635 | 42 | 6,677 | 6,071 | 95 | 6,166 | |||||||||
Consumer | 729 | - | 729 | 697 | - | 697 | 734 | - | 734 | |||||||||
Total allowance for loan losses | $ 32,468 | $ 448 | $ 32,916 | $ 32,036 | $ 242 | $ 32,278 | $ 31,118 | $ 419 | $ 31,537 | |||||||||
Unfunded lending commitments(2) | 2,700 | - | 2,700 | 2,460 | - | 2,460 | 2,594 | - | 2,263 | |||||||||
Total allowance for credit losses | $ 35,168 | $ 448 | $ 35,616 | $ 34,496 | $ 242 | $ 34,738 | $ 33,712 | $ 419 | $ 2,594 | |||||||||
Allowance for loan losses to nonperforming assets | 210.89 % | 175.84 % | 303.56 % | |||||||||||||||
Allowance for loan losses to nonperforming loans | 242.07 % | 178.44 % | 357.81 % | |||||||||||||||
Allowance for loan losses to total loans | 1.21 % | 1.21 % | 1.22 % | |||||||||||||||
Allowance for credit losses to total loans | 1.31 % | 1.30 % | 1.32 % | |||||||||||||||
Year-to-date loan charge-offs | $ 1,285 | $ 1,030 | $ 471 | |||||||||||||||
Year-to-date loan recoveries | 249 | 229 | 368 | |||||||||||||||
Year-to-date net loan charge-offs | $ (1,036) | $ (801) | $ (103) | |||||||||||||||
Annualized YTD net loan charge-offs to average loans | (0.04) % | (0.04) % | - % | |||||||||||||||
(2) The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition. | ||||||||||||||||||
SOURCE Home Bancorp, Inc.
