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HOME BANCORP ANNOUNCES 2022 FOURTH QUARTER RESULTS AND INCREASES QUARTERLY DIVIDEND BY 4%
HOME BANCORP ANNOUNCES 2022 FOURTH QUARTER RESULTS AND INCREASES QUARTERLY DIVIDEND BY 4%
PR Newswire
LAFAYETTE, La., Jan. 24, 2023
LAFAYETTE, La., Jan. 24, 2023 /PRNewswire/ — Home Bancorp, Inc. (Nasdaq: “HBCP”) (the “Company”), the parent compan…
HOME BANCORP ANNOUNCES 2022 FOURTH QUARTER RESULTS AND INCREASES QUARTERLY DIVIDEND BY 4%
PR Newswire
LAFAYETTE, La., Jan. 24, 2023
LAFAYETTE, La., Jan. 24, 2023 /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 2022. For the quarter, the Company reported net income of $10.8 million, or $1.32 per diluted common share ("diluted EPS"), up $342,000 from $10.4 million, or $1.28 diluted EPS, for the third quarter of 2022.
"We are excited to report strong earnings and loan growth throughout our footprint for the third consecutive quarter," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "While maintaining a strong credit discipline, the Company's total loans increased on a reported basis 6% from the previous quarter. Excluding PPP loans, total loans increased $127.9 million, or 22% on an annualized basis. We are seeing continuous success attracting new customers throughout our footprint."
Fourth Quarter 2022 Highlights
- Loans totaled $2.4 billion at December 31, 2022, up $127.5 million, or 6%, from September 30, 2022. PPP loans totaled $6.7 million at December 31, 2022, down $402,000, or 6%, from September 30, 2022.
- Net interest income totaled $33.3 million, up $1.3 million, or 4%, from the prior quarter.
- The net interest margin ("NIM") increased 27 basis points from 4.11% for the third quarter of 2022 to 4.38%.
- Nonperforming assets totaled $11.0 million, or 0.34% of total assets, down $6.5 million, or 37%, from September 30, 2022 primarily due to improved performance of some loans and paydowns.
- The Company recorded a $2.0 million provision to the allowance for loan losses, compared to a $1.7 million provision in the prior quarter, primarily due to loan growth.
Loans
Loans totaled $2.4 billion at December 31, 2022, up $127.5 million, or 6%, from September 30, 2022. PPP loans, included in commercial and industrial loans, decreased $402,000, or 6%, from September 30, 2022. The following table summarizes the changes in the Company's loan portfolio from September 30, 2022 to December 31, 2022.
December 31, | September 30, | Increase (Decrease) | ||||||
(dollars in thousands) | 2022 | 2022 | Amount | Percent | ||||
Real estate loans: | ||||||||
One- to four-family first mortgage | $ 389,616 | $ 376,028 | $ 13,588 | 4 % | ||||
Home equity loans and lines | 61,863 | 60,624 | 1,239 | 2 | ||||
Commercial real estate | 1,152,537 | 1,086,656 | 65,881 | 6 | ||||
Construction and land | 313,175 | 328,753 | (15,578) | (5) | ||||
Multi-family residential | 100,588 | 97,212 | 3,376 | 3 | ||||
Total real estate loans | 2,017,779 | 1,949,273 | 68,506 | 4 | ||||
Other loans: | ||||||||
Commercial and industrial | 377,894 | 320,900 | 56,994 | 18 | ||||
Consumer | 35,077 | 33,106 | 1,971 | 6 | ||||
Total other loans | 412,971 | 354,006 | 58,965 | 17 | ||||
Total loans | $ 2,430,750 | $ 2,303,279 | $ 127,471 | 6 % |
The average loan yield was 5.43% for the fourth quarter of 2022, up 26 basis points from the third quarter of 2022. Commercial real estate and commercial and industrial loans were the primary drivers for the loan growth during the fourth quarter of 2022. Commercial real estate loan growth for the current quarter was primarily in our Acadiana and Houston markets. During the fourth quarter of 2022, the growth in commercial and industrial loans was primarily within our Acadiana and Northshore markets.
Credit Quality and Allowance for Credit Losses
Nonperforming assets ("NPAs"), totaled $11.0 million, or 0.34% of total assets at December 31, 2022, down $6.5 million, or 37%, from $17.5 million, or 0.55% of total assets, at September 30, 2022. The Company recorded net loan charge-offs of $39,000 during the fourth quarter of 2022, compared to net loan charge-offs of $365,000 for the third quarter of 2022.
The Company made a $2.0 million provision to the allowance for loan losses in the fourth quarter of 2022 primarily due to loan growth. For the year ended December 31, 2022, provisions to the allowance for loan losses totaled $7.5 million. At December 31, 2022, the allowance for loan losses totaled $29.3 million, or 1.21% of total loans, compared to $27.4 million, or 1.19% of total loans, at September 30, 2022. Changes in expected losses consider 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.
Deposits
Total deposits were $2.6 billion at December 31, 2022, down $105.2 million, or 4%, from September 30, 2022. The decrease in deposits for the fourth quarter of 2022 was primarily due to customers utilizing excess cash. The following table summarizes the changes in the Company's deposits from September 30, 2022 to December 31, 2022.
December 31, | September 30, | Increase/(Decrease) | ||||||
(dollars in thousands) | 2022 | 2022 | Amount | Percent | ||||
Demand deposits | $ 904,301 | $ 921,089 | $ (16,788) | (2) % | ||||
Savings | 305,871 | 325,594 | (19,723) | (6) | ||||
Money market | 423,990 | 452,474 | (28,484) | (6) | ||||
NOW | 663,574 | 686,592 | (23,018) | (3) | ||||
Certificates of deposit | 335,445 | 352,675 | (17,230) | (5) | ||||
Total deposits | $ 2,633,181 | $ 2,738,424 | $ (105,243) | (4) % |
The average rate on interest-bearing deposits increased 17 basis points from 0.27% for the third quarter of 2022 to 0.44% for the fourth quarter of 2022. At December 31, 2022, certificates of deposit maturing within the next 12 months totaled $259.1 million.
Net Interest Income
The net interest margin ("NIM") increased 27 basis points from 4.11% for the third quarter of 2022 to 4.38% for the fourth quarter of 2022 primarily due to an increase in the average yield on loans, which was partially offset with an increase in the average cost of interest-bearing liabilities. The increase in average cost of interest-bearing liabilities was primarily due to the increased rates paid on deposits during the fourth quarter of 2022.
The average loan yield was 5.43% for the fourth quarter of 2022, up 26 basis points from the third quarter of 2022 primarily reflecting increased market rates of interest coupled with loan growth during the period.
Average PPP loans were $6.9 million for the fourth quarter of 2022, down $2.5 million, or 27%, from the third quarter of 2022. Unrecognized PPP lender fees totaled $94,000 at December 31, 2022.
Loan accretion income from acquired loans totaled $750,000 for the fourth quarter of 2022, down $97,000, or 11%, compared to the third quarter of 2022.
The average rate paid on total interest-bearing deposits was 0.44% for the fourth quarter of 2022, up 17 basis points from the third quarter of 2022 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, 2022 | September 30, 2022 | |||||||||||
(dollars in thousands) | Average | Interest | Average | Average | Interest | Average | ||||||
Interest-earning assets: | ||||||||||||
Loans receivable | $ 2,374,065 | $ 32,826 | 5.43 % | $ 2,265,846 | $ 29,859 | 5.17 % | ||||||
Investment securities (TE) | 549,961 | 3,214 | 2.37 | 532,300 | 2,958 | 2.25 | ||||||
Other interest-earning assets | 62,240 | 555 | 3.54 | 262,127 | 1,447 | 2.19 | ||||||
Total interest-earning assets | $ 2,986,266 | $ 36,595 | 4.82 % | $ 3,060,273 | $ 34,264 | 4.41 % | ||||||
Interest-bearing liabilities: | ||||||||||||
Deposits: | ||||||||||||
Savings, checking, and money market | $ 1,431,577 | $ 1,463 | 0.41 % | $ 1,522,350 | $ 876 | 0.23 % | ||||||
Certificates of deposit | 338,389 | 486 | 0.57 | 371,925 | 394 | 0.42 | ||||||
Total interest-bearing deposits | 1,769,966 | 1,949 | 0.44 | 1,894,275 | 1,270 | 0.27 | ||||||
Other borrowings | 5,539 | 53 | 3.80 | 5,539 | 53 | 3.80 | ||||||
Subordinated debt | 53,984 | 855 | 6.33 | 53,943 | 859 | 6.37 | ||||||
FHLB advances | 54,620 | 456 | 3.28 | 24,977 | 105 | 1.68 | ||||||
Total interest-bearing liabilities | $ 1,884,109 | $ 3,313 | 0.70 % | $ 1,978,734 | $ 2,287 | 0.46 % | ||||||
Net interest spread (TE) | 4.12 % | 3.95 % | ||||||||||
Net interest margin (TE) | 4.38 % | 4.11 % |
Noninterest Expense
Noninterest expense for the fourth quarter of 2022 totaled $21.2 million, up $454,000, or 2%, compared to the third quarter of 2022. Compensation and benefits were up $752,000 from the third quarter of 2022 primarily due to an increase in group health insurance and bonuses for the quarter, partially offset by a decrease in credit losses on unfunded commitments of $316,000.
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 17, 2023, to shareholders of record as of February 6, 2023.
The Company repurchased 1,315 shares of its common stock during the fourth quarter of 2022 at an average price per share of $42.84 under the Company's 2020 Repurchase Plan. An additional 195,718 shares remain eligible for purchase under the 2021 Repurchase Plan. The book value per share and tangible book value per share of the Company's common stock was $39.82 and $29.20, respectively, at December 31, 2022.
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 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 | $ 10,776 | $ 10,434 | $ 10,238 | |||
Add: Core deposit intangible amortization, net tax | 350 | 358 | 221 | |||
Non-GAAP tangible income | $ 11,126 | $ 10,792 | $ 10,459 | |||
Reported loan income | $ 32,826 | $ 29,859 | $ 24,215 | |||
Less: PPP loan income | 26 | 132 | 2,201 | |||
Loan income excluding PPP loan income | $ 32,800 | $ 29,727 | $ 22,014 | |||
Loan yield | 5.43 % | 5.17 % | 5.12 % | |||
Negative (positive) impact of PPP loans | 0.01 | — | (0.29) | |||
Loan yield excluding PPP loans | 5.44 % | 5.17 % | 4.83 % | |||
Net interest margin | 4.38 % | 4.11 % | 3.53 % | |||
Negative (positive) impact of PPP loans | 0.01 | — | (0.24) | |||
Net interest margin excluding PPP loans | 4.39 % | 4.11 % | 3.29 % | |||
Total assets | $ 3,228,280 | $ 3,167,666 | $ 2,938,244 | |||
Less: Intangible assets | 87,973 | 87,839 | 61,949 | |||
Non-GAAP tangible assets | $ 3,140,307 | $ 3,079,827 | $ 2,876,295 | |||
Total shareholders' equity | $ 329,954 | $ 316,656 | $ 351,903 | |||
Less: Intangible assets | 87,973 | 87,839 | 61,949 | |||
Non-GAAP tangible shareholders' equity | $ 241,981 | $ 228,817 | $ 289,954 | |||
Total loans | $ 2,430,750 | $ 2,303,279 | $ 1,840,093 | |||
Less: PPP loans | 6,692 | 7,094 | 43,637 | |||
Total loans excluding PPP loans | $ 2,424,058 | $ 2,296,185 | $ 1,796,456 | |||
Return on average equity | 13.23 % | 12.35 % | 11.65 % | |||
Add: Average intangible assets | 5.52 | 4.99 | 2.83 | |||
Non-GAAP return on average tangible common equity | 18.75 % | 17.34 % | 14.48 % | |||
Common equity ratio | 10.22 % | 10.00 % | 11.98 % | |||
Less: Intangible assets | 2.51 | 2.57 | 1.90 | |||
Non-GAAP tangible common equity ratio | 7.71 % | 7.43 % | 10.08 % | |||
Book value per share | $ 39.82 | $ 38.27 | $ 41.27 | |||
Less: Intangible assets | 10.62 | 10.61 | 7.27 | |||
Non-GAAP tangible book value per share | $ 29.20 | $ 27.66 | $ 34.00 | |||
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, 2021, 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, | September 30, | % | December 31, | ||||
Assets | ||||||||
Cash and cash equivalents | $ 87,401 | $ 150,556 | (42) % | $ 601,443 | ||||
Interest-bearing deposits in banks | 349 | 349 | — | 349 | ||||
Investment securities available for sale, at fair value | 486,518 | 492,758 | (1) | 327,632 | ||||
Investment securities held to maturity | 1,075 | 1,080 | — | 2,102 | ||||
Mortgage loans held for sale | 98 | 169 | (42) | 1,104 | ||||
Loans, net of unearned income | 2,430,750 | 2,303,279 | 6 | 1,840,093 | ||||
Allowance for loan losses | (29,299) | (27,351) | (7) | (21,089) | ||||
Total loans, net of allowance for loan losses | 2,401,451 | 2,275,928 | 6 | 1,819,004 | ||||
Office properties and equipment, net | 43,560 | 43,685 | — | 43,542 | ||||
Cash surrender value of bank-owned life insurance | 46,276 | 46,019 | 1 | 40,361 | ||||
Goodwill and core deposit intangibles | 87,973 | 87,839 | — | 61,949 | ||||
Accrued interest receivable and other assets | 73,579 | 69,283 | 6 | 40,758 | ||||
Total Assets | $ 3,228,280 | $ 3,167,666 | 2 | $ 2,938,244 | ||||
Liabilities | ||||||||
Deposits | $ 2,633,181 | $ 2,738,424 | (4) % | $ 2,535,849 | ||||
Other Borrowings | 5,539 | 5,539 | — | 5,539 | ||||
Subordinated debt, net of issuance cost | 54,013 | 53,958 | — | — | ||||
Federal Home Loan Bank advances | 176,213 | 24,816 | 610 | 26,046 | ||||
Accrued interest payable and other liabilities | 29,380 | 28,273 | 4 | 18,907 | ||||
Total Liabilities | 2,898,326 | 2,851,010 | 2 | 2,586,341 | ||||
Shareholders' Equity | ||||||||
Common stock | 83 | 83 | — % | 85 | ||||
Additional paid-in capital | 164,942 | 164,024 | 1 | 164,982 | ||||
Common stock acquired by benefit plans | (2,060) | (2,150) | 4 | (2,423) | ||||
Retained earnings | 206,296 | 197,553 | 4 | 188,515 | ||||
Accumulated other comprehensive (loss) income | (39,307) | (42,854) | 8 | 744 | ||||
Total Shareholders' Equity | 329,954 | 316,656 | 4 | 351,903 | ||||
Total Liabilities and Shareholders' Equity | $ 3,228,280 | $ 3,167,666 | 2 | $ 2,938,244 |
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 | $ 32,826 | $ 29,859 | 10 % | $ 24,215 | 36 % | |||||
Investment securities | 3,214 | 2,958 | 9 | 1,309 | 146 | |||||
Other investments and deposits | 555 | 1,447 | (62) | 264 | 110 | |||||
Total interest income | 36,595 | 34,264 | 7 | 25,788 | 42 | |||||
Interest Expense | ||||||||||
Deposits | 1,949 | 1,270 | 53 % | 974 | 100 % | |||||
Other borrowings | 53 | 53 | — | 53 | — | |||||
Subordinated debt expense | 855 | 859 | — | — | — | |||||
Federal Home Loan Bank advances | 456 | 105 | 334 | 111 | 311 | |||||
Total interest expense | 3,313 | 2,287 | 45 | 1,138 | 191 | |||||
Net interest income | 33,282 | 31,977 | 4 | 24,650 | 35 | |||||
Provision (reversal) for loan losses | 1,987 | 1,696 | 17 | (2,648) | 175 | |||||
Net interest income after provision for loan losses | 31,295 | 30,281 | 3 | 27,298 | 15 | |||||
Noninterest Income | ||||||||||
Service fees and charges | 1,198 | 1,300 | (8) % | 1,224 | (2) % | |||||
Bank card fees | 1,566 | 1,623 | (4) | 1,519 | 3 | |||||
Gain on sale of loans, net | 22 | 78 | (72) | 376 | (94) | |||||
Income from bank-owned life insurance | 257 | 231 | 11 | 219 | 17 | |||||
Gain on sale of assets, net | 9 | 18 | (50) | (44) | 120 | |||||
Other income | 287 | 224 | 28 | 240 | 20 | |||||
Total noninterest income | 3,339 | 3,474 | (4) | 3,534 | (6) | |||||
Noninterest Expense | ||||||||||
Compensation and benefits | 12,880 | 12,128 | 6 % | 9,991 | 29 % | |||||
Occupancy | 2,261 | 2,297 | (2) | 1,824 | 24 | |||||
Marketing and advertising | 550 | 658 | (16) | 1,033 | (47) | |||||
Data processing and communication | 2,295 | 2,284 | — | 2,237 | 3 | |||||
Professional fees | 388 | 331 | 17 | 493 | (21) | |||||
Forms, printing and supplies | 182 | 185 | (2) | 164 | 11 | |||||
Franchise and shares tax | 693 | 633 | 9 | 396 | 75 | |||||
Regulatory fees | 511 | 467 | 9 | 331 | 54 | |||||
Foreclosed assets, net | 30 | 101 | (70) | 155 | (81) | |||||
Amortization of acquisition intangible | 443 | 453 | (2) | 279 | 59 | |||||
Provision for credit losses on unfunded lending commitments | (170) | 146 | (216) | 15 | (1233) | |||||
Other expenses | 1,114 | 1,040 | 7 | 1,099 | 1 | |||||
Total noninterest expense | 21,177 | 20,723 | 2 | 18,017 | 18 | |||||
Income before income tax expense | 13,457 | 13,032 | 3 | 12,815 | 5 | |||||
Income tax expense | 2,681 | 2,598 | 3 | 2,577 | 4 | |||||
Net income | $ 10,776 | $ 10,434 | 3 | $ 10,238 | 5 | |||||
Earnings per share - basic | $ 1.33 | $ 1.29 | 3 % | $ 1.24 | 7 % | |||||
Earnings per share - diluted | $ 1.32 | $ 1.28 | 3 | $ 1.23 | 7 | |||||
Cash dividends declared per common share | $ 0.24 | $ 0.23 | 4 % | $ 0.23 | 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 | $ 36,595 | $ 34,264 | 7 % | $ 25,788 | 42 % | |||||
Total interest expense | 3,313 | 2,287 | 45 | 1,138 | 191 | |||||
Net interest income | 33,282 | 31,977 | 4 | 24,650 | 35 | |||||
(Reversal) provision for loan losses | 1,987 | 1,696 | 17 | (2,648) | 175 | |||||
Total noninterest income | 3,339 | 3,474 | (4) | 3,534 | (6) | |||||
Total noninterest expense | 21,177 | 20,723 | 2 | 18,017 | 18 | |||||
Income tax expense | 2,681 | 2,598 | 3 | 2,577 | 4 | |||||
Net income | $ 10,776 | $ 10,434 | 3 | $ 10,238 | 5 | |||||
AVERAGE BALANCE SHEET DATA | ||||||||||
Total assets | $ 3,173,676 | $ 3,265,907 | (3) % | $ 2,941,274 | 8 % | |||||
Total interest-earning assets | 2,986,266 | 3,060,273 | (2) | 2,749,445 | 9 | |||||
Total loans | 2,374,065 | 2,265,846 | 5 | 1,856,814 | 28 | |||||
PPP loans | 6,883 | 9,431 | (27) | 67,198 | (90) | |||||
Total interest-bearing deposits | 1,769,966 | 1,894,275 | (7) | 1,729,341 | 2 | |||||
Total interest-bearing liabilities | 1,884,109 | 1,978,734 | (5) | 1,761,052 | 7 | |||||
Total deposits | 2,707,823 | 2,818,318 | (4) | 2,537,670 | 7 | |||||
Total shareholders' equity | 323,102 | 335,053 | (4) | 348,635 | (7) | |||||
PER SHARE DATA | ||||||||||
Earnings per share - basic | $ 1.33 | $ 1.29 | 3 % | $ 1.24 | 7 % | |||||
Earnings per share - diluted | 1.32 | 1.28 | 3 | 1.23 | 7 | |||||
Book value at period end | 39.82 | 38.27 | 4 | 41.27 | (4) | |||||
Tangible book value at period end | 29.20 | 27.66 | 6 | 34.00 | (14) | |||||
Shares outstanding at period end | 8,286,084 | 8,273,334 | — | 8,526,907 | (3) | |||||
Weighted average shares outstanding | ||||||||||
Basic | 8,070,734 | 8,089,246 | — % | 8,278,472 | (3) % | |||||
Diluted | 8,119,481 | 8,138,307 | — | 8,331,749 | (3) | |||||
SELECTED RATIOS (1) | ||||||||||
Return on average assets | 1.35 % | 1.27 % | 6 % | 1.38 % | (2) % | |||||
Return on average equity | 13.23 | 12.35 | 7 | 11.65 | 14 | |||||
Common equity ratio | 10.22 | 10.00 | 2 | 11.98 | (15) | |||||
Efficiency ratio (2) | 57.83 | 58.45 | (1) | 63.93 | (10) | |||||
Average equity to average assets | 10.18 | 10.26 | (1) | 11.85 | (14) | |||||
Tier 1 leverage capital ratio (3) | 10.43 | 9.76 | 7 | 9.77 | 7 | |||||
Total risk-based capital ratio (3) | 13.63 | 13.65 | — | 15.85 | (14) | |||||
Net interest margin (4) | 4.38 | 4.11 | 7 | 3.53 | 24 | |||||
SELECTED NON-GAAP RATIOS (1) | ||||||||||
Tangible common equity ratio (5) | 7.71 % | 7.43 % | 4 % | 10.08 % | (24) % | |||||
Return on average tangible common equity (6) | 18.75 | 17.34 | 8 | 14.48 | 29 | |||||
(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, 2022 | September 30, 2022 | December 31, 2021 | ||||||||||||||||
(dollars in thousands) | Acquired | Originated | Total | Acquired | Originated | Total | Acquired | Originated | Total | |||||||||
CREDIT QUALITY (1) | ||||||||||||||||||
Nonaccrual loans (2) | $ 6,177 | $ 4,336 | $ 10,513 | $ 12,799 | $ 4,281 | $ 17,080 | $ 6,036 | $ 7,233 | $ 13,269 | |||||||||
Accruing loans past due 90 days and over | — | 2 | 2 | — | 3 | 3 | — | 6 | 6 | |||||||||
Total nonperforming loans | 6,177 | 4,338 | 10,515 | 12,799 | 4,284 | 17,083 | 6,036 | 7,239 | 13,275 | |||||||||
Foreclosed assets and ORE | 310 | 151 | 461 | 376 | 14 | 390 | 80 | 1,109 | 1,189 | |||||||||
Total nonperforming assets | 6,487 | 4,489 | 10,976 | 13,175 | 4,298 | 17,473 | 6,116 | 8,348 | 14,464 | |||||||||
Performing troubled debt restructurings | 1,605 | 4,600 | 6,205 | 879 | 4,686 | 5,565 | 1,096 | 3,867 | 4,963 | |||||||||
Total nonperforming assets and troubled debt restructurings | $ 8,092 | $ 9,089 | $ 17,181 | $ 14,054 | $ 8,984 | $ 23,038 | $ 7,212 | $ 12,215 | $ 19,427 | |||||||||
Nonperforming assets to total assets | 0.34 % | 0.55 % | 0.49 % | |||||||||||||||
Nonperforming loans to total assets | 0.33 | 0.54 | 0.45 | |||||||||||||||
Nonperforming loans to total loans | 0.43 | 0.74 | 0.72 |
(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, $3.3 million and $3.7 million at December 31, 2022, September 30, 2022 and December 31, 2021, respectively. Acquired restructured loans placed on nonaccrual totaled $3.7 million, $4.7 million and $3.5 million at December 31, 2022, September 30, 2022 and December 31, 2021, respectively. |
HOME BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||
SUMMARY CREDIT QUALITY INFORMATION - CONTINUED | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
12/31/2022 | 9/30/2022 | 12/31/2021 | ||||||||||||||||
Collectively | Individually | Total | Collectively | Individually | Total | Collectively | Individually | Total | ||||||||||
ALLOWANCE FOR CREDIT LOSSES | ||||||||||||||||||
One- to four-family first mortgage | $ 2,883 | $ — | $ 2,883 | $ 2,293 | $ 32 | $ 2,325 | $ 1,944 | $ — | $ 1,944 | |||||||||
Home equity loans and lines | 624 | — | 624 | 500 | — | 500 | 508 | — | 508 | |||||||||
Commercial real estate | 13,264 | 550 | 13,814 | 12,504 | 1,193 | 13,697 | 10,207 | 247 | 10,454 | |||||||||
Construction and land | 4,680 | — | 4,680 | 4,973 | — | 4,973 | 3,572 | — | 3,572 | |||||||||
Multi-family residential | 572 | — | 572 | 498 | — | 498 | 457 | — | 457 | |||||||||
Commercial and industrial | 5,853 | 171 | 6,024 | 4,523 | 188 | 4,711 | 3,095 | 425 | 3,520 | |||||||||
Consumer | 702 | — | 702 | 647 | — | 647 | 634 | — | 634 | |||||||||
Total allowance for loan losses | $ 28,578 | $ 721 | $ 29,299 | $ 25,938 | $ 1,413 | $ 27,351 | $ 20,417 | $ 672 | $ 21,089 | |||||||||
Unfunded lending commitments(1) | 2,093 | — | 2,093 | 2,263 | — | 2,263 | 1,815 | — | 1,815 | |||||||||
Total allowance for credit losses | $ 30,671 | $ 721 | $ 31,392 | $ 28,201 | $ 1,413 | $ 29,614 | $ 22,232 | $ 672 | $ 22,904 | |||||||||
Allowance for loan losses to nonperforming assets | 266.94 % | 156.53 % | 145.80 % | |||||||||||||||
Allowance for loan losses to nonperforming loans | 278.64 | 160.11 | 158.86 | |||||||||||||||
Allowance for loan losses to total loans | 1.21 | 1.19 | 1.15 | |||||||||||||||
Allowance for credit losses to total loans | 1.29 | 1.29 | 1.24 | |||||||||||||||
Year-to-date loan charge-offs | $ 1,398 | $ 1,260 | $ 2,305 | |||||||||||||||
Year-to-date loan recoveries | 704 | 605 | 592 | |||||||||||||||
Year-to-date net loan charge-offs | $ 694 | $ 655 | $ 1,713 | |||||||||||||||
Annualized YTD net loan charge-offs to average loans | 0.03 % | 0.04 % | 0.09 % |
(1) | The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/home-bancorp-announces-2022-fourth-quarter-results-and-increases-quarterly-dividend-by-4-301729168.html
SOURCE Home Bancorp, Inc.
Uncategorized
The Fed’s stock market influence, like inflation pressure, continues to fade
The Federal Reserve’s massive influence on stock and bond markets is changing.
The Federal Reserve has pulled off one of the biggest monetary policy surprises in decades, thanks in part to the lessons it learned from an earlier communications error, and it looks set to deliver on perhaps its most difficult challenge.
But while some would think this refers to the central bank's chances of executing a so-called soft landing for the world's biggest economy, where inflation is tamed without triggering a recession, the Fed's greater accomplishment is actually even more difficult.
It's slowly convinced markets to align with its interest-rate-cut forecasts while quietly touting the strength of the underlying economy. That's enabled investors to focus on growth and profits over policy, and it has helped power stocks to their best back-to-back quarterly performance in over a decade.
Friday's PCE inflation report is a great example of the Fed's messaging. It has preached patience as the central bank brings price gains back to its 2% target while reminding investors that its aggressive 2022 rate hikes haven't pounded the economy into submission.
The Fed's preferred inflation gauge cooled modestly last month, with the closely tracked core reading easing to 2.8%, even as consumer spending popped by nearly twice the level of Wall Street forecasts.
A patient Fed and surging markets
The PCE reading followed an upwardly revised tally for fourth-quarter GDP, which showed an improved growth rate of 3.4% and inflation pressures that held very close to the Fed's 2% over the final six months of last year.
Jeffery Roach, chief economist for LPL Financial in Charlotte, says the broader spending trend is still weakening. He notes the decline in personal income, but adds that "where we sit today, markets need to have the same patience the Fed is exhibiting."
Related: What's next for the S&P 500 after its best run since 2011
Still, if consumers are spending, inflation is slowing and the economy is growing, Fed rate forecasts might not matter so much and the market's obsession with its messaging to derive its next move will quickly begin to fade.
We've seen evidence of that already, with the S&P 500 rising to a record 5,254.35 points on Thursday to close out a quarterly gain of 10.16%, the best in five years.
The benchmark's advance came amid another call for patience on rates from Federal Reserve Gov. Christopher Waller earlier this week and Fed Chairman Jerome Powell's similarly cautious remarks earlier this month.
Fed's past errors haunt policy
"We’re in a situation where if we ease too much or too soon, we could see inflation come back, and if we ease too late, we could do unnecessary harm to employment and people’s working lives," Powell told reporters in Washington following the Fed's last policy meeting.
"We want to be careful," he added. "And fortunately, with the economy growing, with the labor market strong, and with inflation coming down, we can approach that question carefully and let the data speak on that."
The Fed's tone likely reflects the criticism it faced in declaring post-covid inflation pressures "transitory" in early 2021.
Related: Fed hints at bank stock risk from repo market meltdown redux
With the Fed having made that prognosis and repeating it through much of that summer, inflation ultimately accelerated faster than anyone expected and peaked at an annualized rate of 9.1% in summer 2022.
The S&P 500's gains this year have also defined a notable rise in Treasury bond yields, which have adjusted to the Fed's efforts to align markets to its forecast of three rate cuts this year as well as a heftier slate of issuance to fund the government's fiscal ambitions.
Benchmark 10-year Treasury note yields have risen more than 34 basis points (0.34 percentage points) this year, ending the quarter at 4.204%, while 2-year notes gained 37.8 basis points over the same period to 4.628%.
"Another way of looking at the 10-year Treasury yield surge is to consider it a sign of increasing investor confidence," said Trading.biz analyst Rahul Nambiampurath, as investors exit fixed-income investments into riskier assets with higher returns.
It's the economy, stupid
That likely means investors are starting to believe in a U.S. growth story that has lost some of its late-2023 steam but is still on pace to continue adding jobs and power consumer spending as it avoids recession and adds further distance between itself and the rest of the world's major economies.
Ian Shepherdson of Pantheon Macroeconomics notes that spending on services, the most important growth component, has accelerated to 4.5% over the past three months, the fastest since the post-COVID rebound in 2021.
Any gains in March, he suggests, will bring upward revisions to first-quarter GDP forecasts, which the Atlanta Fed currently pegs at around 2.1%.
Related: The Fed rate decision won't surprise markets. What happens next might
Corporate profits, powered partly by consumers who aren't worried about their jobs and are happy to dip into post-pandemic savings, also carry some solid momentum into the start of the year.
Bill Adams, chief economist for Comerica Bank in Dallas, notes that stripping out losses at the Fed (tied to its $7.7 trillion balance sheet), which are included in the Bureau of Economic Analysis's data, corporate profits rose at an annualized rate of 5.9% over the final three months of last year.
Rate cuts 'welcome but not needed'
Looking into 2024, Wall Street forecasters see collective S&P 500 profits rising just under 10%, around double the 2023 figure, to an overall average of $243 a share.
"The stock market performed extremely well during the first quarter of 2024, and as long as earnings remain strong, the market can continue to move higher," said Jeremy Straub, chief executive and chief investment officer at Coastal Wealth in Fort Lauderdale, Fla.
More Economy:
- Bond markets tell Fed rate story that stocks still ignore
- February inflation surprises with modest uptick, but core pressures ease
- Vanguard unveils bold interest rate forecast ahead of Fed meeting
"While rate cuts from the Fed would be welcome news for stocks, they are not a requirement for a strong market, which has been able to rally for the past 18 months even with high interest rates," he added. "We believe stock investors are adjusting to this new normal of higher interest rates."
So, with bonds likely focused on supply metrics and closely tracking the levels of foreign demand in benchmark auctions and stocks keying on earnings and profit margins, we may be seeing the Fed's influence fade quietly into the background.
Related: Veteran fund manager picks favorite stocks for 2024
recession pandemic bonds sp 500 stocks monetary policy fed federal reserve recession gdp interest rates consumer spendingUncategorized
Movie theater chain seeks sale after recovering from bankruptcy
Popular dine-in movie theater chain is reportedly seeking another sale after emerging from bankruptcy three years ago.
The Covid-19 pandemic of 2020 devastated hundreds of businesses in the U.S., forcing several establishments to file for bankruptcy, such as retailers, restaurants, real estate firms and energy companies.
Most people remember the names of many of the restaurants that fell into bankruptcy, including Chuck E. Cheese, Souplantation, Sweet Tomatoes, HomeTown Buffet and Old Country Buffet. Several retail chains, such as JC Penney, Bed Bath & Beyond and a list of movie theater operators also filed Chapter 11.
Related: KFC rolls out new menu item to challenge McDonald’s, Burger King
Pandemic caused movie theater bankruptcies
Movie theater operator CMX Cinemas filed for Chapter 11 bankruptcy in April 2020 after the Covid-19 pandemic devastated the industry.
Regal Cinemas owner Cineworld also struggled during the pandemic and afterward, as it closed over 50 Regal theaters and filed bankruptcy in September 2022. Cineworld, the second largest theater operator behind AMC, emerged from bankruptcy July 31, 2023.
The movie theater industry has struggled to lure people back into their brick-and-mortar properties after the Covid-19 pandemic, as movie fans have been reluctant to return to indoor theaters after the healthcare disaster. The smaller crowds in movie venues since the pandemic began has led to more theater operators filing bankruptcy.
Iconic movie theater chain Metropolitan Theatres Corp. filed for Chapter 11 bankruptcy protection to reorganize its business affairs, which will include restructuring and possibly rejecting theater leases, company president David Corwin wrote in a bankruptcy declaration.
The Los Angeles-based movie theater chain on Feb. 29 filed its Subchapter V bankruptcy petition in the U.S. Bankruptcy Court for the Central District of California in Los Angeles.
Some movie theater chains that filed for Chapter 11 protection because of the effects of the Covid-19 pandemic , however, emerged from reorganization and are thriving in the business.
Alamo Drafthouse chain seeking a sale
Dine-in movie theater chain Alamo Drafthouse Cinema has bucked the trend of distressed multiplexes across the nation, as its recent success may have made it attractive for an acquisition. The Austin, Texas, company is seeking a buyer for its 41-theater chain, with 17 franchise-owned sites, located in 13 states, Deadline reported.
Word of the company inquiring about a possible sale came from several unnamed Deadline sources, who also said no asking price has been revealed and there have been no bidders yet.
Alamo Drafthouse, founded in 1997, reportedly generated $134 million at the box office in 2023, which was more than a 25% increase over 2022.
The dine-in movie theater chain in March 2021 filed for Chapter 11 bankruptcy suffering from the effects of the Covid-19 pandemic and emerged from bankruptcy in June 2021 after a sale to an investment group that included Altamont Capital Partners, Fortress Investment Group and founder Tim League.
The theater chain presents the latest motion picture releases, foreign language films or cinematic classics. The theaters' seats have tables in front of them for guests' food and drinks that are delivered to their seats. Some theaters also have recliner chairs.
Each location's menu serves burgers, pizzas, salads, snacks and desserts, and the bar features selections from local craft breweries, as well as innovative cocktails, according to the theater chain's website.
Related: Veteran fund manager picks favorite stocks for 2024
bankruptcy pandemic covid-19 stocks real estateUncategorized
Movie theater chain rises after bankruptcy, reportedly seeks sale
Popular dine-in movie theater chain is reportedly seeking another sale after emerging from bankruptcy three years ago.
The Covid-19 pandemic of 2020 devastated hundreds of businesses in the U.S., forcing several establishments to file for bankruptcy, such as retailers, restaurants, real estate firms and energy companies.
Most people remember the names of many of the restaurants that fell into bankruptcy, including Chuck E. Cheese, Souplantation, Sweet Tomatoes, HomeTown Buffet and Old Country Buffet. Several retail chains, such as JC Penney, Bed Bath & Beyond and a list of movie theater operators also filed Chapter 11.
Related: KFC rolls out new menu item to challenge McDonald’s, Burger King
Pandemic caused movie theater bankruptcies
Movie theater operator CMX Cinemas filed for Chapter 11 bankruptcy in April 2020 after the Covid-19 pandemic devastated the industry.
Regal Cinemas owner Cineworld also struggled during the pandemic and afterward, as it closed over 50 Regal theaters and filed bankruptcy in September 2022. Cineworld, the second largest theater operator behind AMC, emerged from bankruptcy July 31, 2023.
The movie theater industry has struggled to lure people back into their brick-and-mortar properties after the Covid-19 pandemic, as movie fans have been reluctant to return to indoor theaters after the healthcare disaster. The smaller crowds in movie venues since the pandemic began has led to more theater operators filing bankruptcy.
Iconic movie theater chain Metropolitan Theatres Corp. filed for Chapter 11 bankruptcy protection to reorganize its business affairs, which will include restructuring and possibly rejecting theater leases, company president David Corwin wrote in a bankruptcy declaration.
The Los Angeles-based movie theater chain on Feb. 29 filed its Subchapter V bankruptcy petition in the U.S. Bankruptcy Court for the Central District of California in Los Angeles.
Some movie theater chains that filed for Chapter 11 protection because of the effects of the Covid-19 pandemic , however, emerged from reorganization and are thriving in the business.
Alamo Drafthouse chain seeking a sale
Dine-in movie theater chain Alamo Drafthouse Cinema has bucked the trend of distressed multiplexes across the nation, as its recent success may have made it attractive for an acquisition. The Austin, Texas, company is seeking a buyer for its 41-theater chain, with 17 franchise-owned sites, located in 13 states, Deadline reported.
Word of the company inquiring about a possible sale came from several unnamed Deadline sources, who also said no asking price has been revealed and there have been no bidders yet.
Alamo Drafthouse, founded in 1997, reportedly generated $134 million at the box office in 2023, which was more than a 25% increase over 2022.
The dine-in movie theater chain in March 2021 filed for Chapter 11 bankruptcy suffering from the effects of the Covid-19 pandemic and emerged from bankruptcy in June 2021 after a sale to an investment group that included Altamont Capital Partners, Fortress Investment Group and founder Tim League.
The theater chain presents the latest motion picture releases, foreign language films or cinematic classics. The theaters' seats have tables in front of them for guests' food and drinks that are delivered to their seats. Some theaters also have recliner chairs.
Each location's menu serves burgers, pizzas, salads, snacks and desserts, and the bar features selections from local craft breweries, as well as innovative cocktails, according to the theater chain's website.
Related: Veteran fund manager picks favorite stocks for 2024
bankruptcy pandemic covid-19 stocks real estate-
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