Hank's Small Banks

[10 bagger]

Home Bancorp, Inc. (HBCP),, $44.16...

SELECTED RATIOS
For The Quarter Ended Ended
September 30, % June 30, %
(dollars in thousands) 2008 2007 Change 2008 Change
Return on average assets 1.20% 0.96% 24% 1.00% 20%

Return on average total
equity 11.12% 8.28% 34% 8.68 28%

Efficiency ratio 60.71% 66.03% 66.20%

Average equity to average
assets 10.77% 11.65% 11.48%

Core capital ratio 10.57 12.13 11.44
Net interest margin 4.19% 3.85% 3.97%

Home Bancorp Announces Third Quarter 2008 Earnings

Oct 30, 2008 20:00:00 (ET)

LAFAYETTE, La., Oct 30, 2008,,, Home Bancorp, Inc. (HBCP) the holding company for Home Bank ( http://www.home24bank.com ), a Federally chartered savings bank headquartered in Lafayette, Louisiana (the "Bank"), announced net income of $1.4 million for the third quarter of 2008, an increase of $409,000, or 42%, compared to the third quarter of 2007. Net income for the first nine months of 2008 was $3.5 million, an increase of $601,000, or 21%, compared to the first nine months of 2007.

John W. Bordelon, President and Chief Executive Officer of the Company and the Bank, stated, "At a time when anxiety in the U.S. financial system is at an all time high, our initial public offering raised over $89 million -- further bolstering our strong capital position. We begin our second century of service well positioned to serve our customers and expand our company."

"On behalf of our Board of Directors and executive management team, I want to express our deep appreciation to Home Bank's employees for their incredible loyalty and dedication to serving our customers and growing our company," added Mr. Bordelon. "We would not be in this position of strength without their tremendous efforts."

Mutual to Stock Conversion

The Company completed its initial public stock offering on October 2, 2008, and began trading on the Nasdaq Global Market on October 3, 2008. The Company issued 8,926,875 shares of its common stock for an aggregate of $89,268,750 in total offering proceeds. The net proceeds of approximately $87 million will be reflected in the Company's shareholders' equity at December 31, 2008.

Baton Rouge Expansion

Home Bank opened its first full-service branch in Baton Rouge in September 2008. The Bank also operates a loan production office in Baton Rouge and expects to open its second full-service Baton Rouge branch in December.

Loans and Credit Quality

Loans totaled $317.6 million at September 30, 2008, an increase of $20.1 million, or 7%, from September 30, 2007, and an increase of $2.4 million, or 1%, from June 30, 2008. The majority ($7.9 million) of the Bank's 2008 loan growth relates to commercial real estate loans. Contrary to the national economy, south central Louisiana continues to enjoy relatively strong economic activity.

The Company recorded a $93,000 provision for loan losses in the third quarter of 2008, compared to $59,000 during the third quarter of 2007 and $98,000 in the second quarter of 2008. Net loan charge-offs for the first nine months of 2008 were $85,000, or 0.04%, of average loans outstanding on an annualized basis, compared to $30,000 for the first nine months of 2007. Non-performing assets totaled $638,000, or 0.13%, of total assets, at September 30, 2008, compared to $1.3 million and $836,000 at September 30, 2007 and June 30, 2008, respectively.

As of September 30, 2008, the allowance for loan losses as a percentage of total loans was 0.75%, compared to 0.71% and 0.75% at September 30, 2007 and June 30, 2008, respectively.

Investment Securities Portfolio

The Bank's investment securities portfolio totaled $80.2 million at September 30, 2008, an increase of $28.7 million, or 56%, from September 30, 2007, and an increase of $11.2 million, or 16%, from June 30, 2008. At September 30, 2008, the Bank had an unrealized loss position on its investment securities portfolio of $2.5 million, compared to an unrealized gain of $66,000 at December 31, 2007. The unrealized loss relates primarily to the Bank's non-agency (private-label) mortgage-backed securities holdings, which amounted to $47.5 million, or 9% of total assets, at September 30, 2008. The decline in the recorded value of this portfolio reflects broker quotes which, in the current market, include liquidations and distressed sales. Based on management's review of the securities and the Bank's intent and ability to hold the securities until maturity, such non-agency mortgage-backed securities are not deemed to be other than temporarily impaired at September 30, 2008. The Company holds no Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) preferred stock.

Deposits

Deposits totaled $353.5 million at September 30, 2008, an increase of $8.2 million, or 2%, from September 30, 2007, and a decrease of $2.3 million, or 1%, from June 30, 2008. The Bank's focus has been on growing core deposits (i.e., checking, savings and money market accounts). As of September 30, 2008, core deposits have increased $13.4 million, or 8%, during 2008.

Accrued interest payable and other liabilities totaled $82.5 million at September 30, 2008, an increase of $79.8 million from June 30, 2008. This increase resulted from cash receipts for subscriptions to purchase shares of the Company's common stock in its initial public offering. The net proceeds of the initial public offering will be reflected in the Company's shareholders' equity at December 31, 2008.

Net Interest Income

Net interest income for the third quarter of 2008 totaled $4.6 million, an increase of $836,000, or 22%, compared to the third quarter of 2007, and an increase of $432,000, or 10%, compared to the second quarter of 2008. The Bank's net interest margin was 4.19% for the third quarter of 2008, 34 basis points higher than the same quarter a year ago and 22 basis points higher than the second quarter of 2008. Average interest-earning assets totaled $442.1 million for the quarter ended September 30, 2008, which represents increases of 12% and 5% compared to the quarters ended September 30, 2007 and June 30, 2008, respectively. The average yield on interest-earning assets for the quarter ended September 30, 2008 was 6.14%, which represents decreases of 31 and 2 basis points compared to the quarters ended September 30, 2007 and June 30, 2008, respectively.

Average interest-bearing liabilities totaled $335.5 million for the quarter ended September 30, 2008, an increase of 11% and 1% compared to the quarters ended September 30, 2007 and June 30, 2008, respectively. The average rate paid on interest-bearing liabilities for the quarter ended September 30, 2008 was 2.57%, which represents decreases of 81 and 22 basis points compared to the quarters ended September 30, 2007 and June 30, 2008, respectively.

Noninterest Income

Noninterest income for the third quarter of 2008 was $971,000, an increase of $200,000, or 26%, compared to the same quarter a year ago. The primary reasons for the increase in noninterest income compared to the same quarter last year were higher levels of service fees and charges (up 25%) and income from bank-owned life insurance policies purchased during the fourth quarter of 2007. Compared to the quarter ended June 30, 2008, noninterest income decreased $69,000, or 7%, due to reduced service fees and charges and gains on the sale of mortgage loans.

Noninterest Expense

Noninterest expense for the third quarter of 2008 was $3.4 million, an increase of $386,000, or 13%, compared to the same quarter a year ago. The primary reason for the increase in noninterest expense compared to the same quarter last year was compensation and benefits expense, which increased $314,000, or 17%, due mostly to the Bank's expansion. Compared to the quarter ended June 30, 2008, noninterest expense decreased $67,000, or 2%. The primary reasons for the decrease in noninterest expense from the previous quarter were lower marketing and data processing expenses.

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 prospectus, dated August 12, 2008, describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for losses on loans, 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 BANK
CONDENSED STATEMENTS OF FINANCIAL CONDITION

September 30, September 30, % June 30, December 31,
2008 2007 Change 2008 2007
Assets
Cash and
cash
equivalents $60,389,012 $19,226,509 214% $14,453,603 $11,746,082
Interest-
bearing
deposits
in banks 792,000 3,267,000 (76) 2,673,000 3,267,000
Cash
invested at
other ATM
locations 20,697,177 17,986,931 15 25,842,389 17,142,751
Securities
available
for sale,
at fair
value 76,301,887 45,545,768 68 64,853,202 56,995,287
Securities
held to
maturity 3,870,154 5,907,947 (34) 4,082,337 4,693,288
Mortgage
loans
held for
sale 281,200 1,366,200 (79) 535,000 1,174,650
Loans, net
of
unearned
income 317,564,165 297,477,394 7 315,192,357 308,582,151
Allowance
for loan
losses (2,390,573) (2,121,158) 13 (2,377,968) (2,314,132)
Loans,
net 315,173,592 295,356,236 7 312,814,389 306,268,019
Office
properties
and
equipment,
net 13,489,704 10,704,202 26 12,005,024 11,687,580
Cash
surrender
value of
bank-owned
life
insurance 5,201,472 - - 5,134,487 5,006,615
Accrued
interest
receivable
and other
assets 6,848,881 3,973,585 72 5,699,519 4,369,573
Total
Assets $503,045,079 $403,334,378 25% $448,092,950 $422,350,845


Liabilities
Deposits $353,476,182 $345,241,359 2% $355,760,365 $353,536,399
Federal
Home
Loan Bank
advances 15,843,422 6,396,491 148 38,856,903 16,883,436
Accrued
interest
payable
and other
liabilities 82,537,048 2,706,480 2,950 2,716,604 2,547,890
Total
Liabilities 451,856,652 354,344,330 28 397,333,872 372,967,725

Equity
Retained
earnings 52,854,168 48,930,514 8 51,461,993 49,339,479
Accumulated
other
comprehensive
income
(loss) (1,665,741) 59,534 (2,898) (702,915) 43,641
Total
Equity 51,188,427 48,990,048 4 50,759,078 49,383,120
Total
Liabilities
and
Equity $503,045,079 $403,334,378 25% $448,092,950 $422,350,845



HOME BANK
CONDENSED STATEMENTS OF INCOME

For The Three Months For The Nine Months
Ended September 30, % Ended September 30, %
2008 2007 Change 2008 2007 Change
Interest Income
Loans,
including
fees $5,343,053 $5,165,621 3% $15,851,725 $15,063,115 5%
Investment
securities 1,035,622 613,962 69 2,719,522 1,896,429 43
Other
investments
and deposits 405,809 577,744 (30) 1,122,387 1,616,766 (31)
Total interest
income 6,784,484 6,357,327 7 19,693,634 18,576,310 6

Interest Expense
Deposits 1,875,504 2,467,092 (24) 6,327,808 7,165,111 (12)
Federal
Home Loan
Bank advances 280,141 97,837 186 683,442 205,271 233
Total interest
expense 2,155,645 2,564,929 (16) 7,011,250 7,370,382 (5)
Net interest
income 4,628,839 3,792,398 22 12,682,384 11,205,928 13
Provision for
loan losses 92,500 59,499 55 161,437 142,386 13
Net interest
income after
provision for
loan losses 4,536,339 3,732,899 22 12,520,947 11,063,542 13

Noninterest Income
Service fees
and charges 705,167 563,310 25 2,118,281 1,674,573 26
Gain on sale
of loans,
net 41,555 83,498 (50) 192,553 218,321 (12)
Net loss on
sale of
real estate
owned - - - (3,488) - -
Other income 224,248 123,796 81 636,554 361,393 76
Total
noninterest
income 970,970 770,604 26 2,943,900 2,254,287 31

Noninterest Expense
Compensation
and
benefits 2,191,874 1,877,677 17 6,427,873 5,545,103 16
Occupancy 194,205 181,320 7 569,789 514,304 11
Marketing and
advertising 82,241 111,249 (26) 340,268 334,329
Data processing
and
communication 197,078 186,511 6 664,609 624,703 6
Depreciation 203,282 202,176 1 606,362 606,528 (0)
Other expenses 530,930 454,187 17 1,532,316 1,278,105 20
Total
noninterest
expense 3,399,610 3,013,120 13 10,141,217 8,903,072 14
Income before
income tax
expense 2,107,699 1,490,383 41 5,323,630 4,414,757 21
Income tax
expense 715,524 506,730 41 1,808,941 1,501,017 21
Net Income $1,392,175 $983,653 42% $3,514,689 $2,913,740 21%



HOME BANK
SUMMARY FINANCIAL INFORMATION

For the
Quarter
For The Quarter Ended Ended
September 30, % June 30, %
(dollars in thousands) 2008 2007 Change 2008 Change
EARNINGS DATA
Total interest income $6,785 $6,357 7% $6,504 4%
Total interest expense 2,156 2,565 (16) 2,307 (7)
Net interest income 4,629 3,792 22 4,197 10
Provision for loan losses (92) (59) 56 (98) (6)
Total noninterest income 971 771 26 1,040 (7)
Total noninterest expense 3,400 3,013 13 3,467 (2)
Income tax expense 716 507 41 569 26
Net Income $1,392 $984 41 $1,103 26


AVERAGE BALANCE SHEET DATA
Total assets $464,560 $407,927 14% $442,936 5%
Earning assets 442,051 394,055 12 422,358 5
Loans 315,431 292,534 8 311,413 1
Interest bearing deposits 296,485 295,007 1 298,548 (1)
Total deposits 359,210 347,624 3 356,153 1
Total equity 50,052 47,539 5 50,854 (2)

SELECTED RATIOS
Return on average assets 1.20% 0.96% 24% 1.00% 20%
Return on average total
equity 11.12 8.28 34 8.68 28
Efficiency ratio 60.71 66.03 (8) 66.20 (8)
Average equity to average
assets 10.77 11.65 (8) 11.48 (6)
Core capital ratio 10.57 12.13 (13) 11.44 (8)
Net interest margin 4.19 3.85 9 3.97 5


September 30, September 30, % June 30, %
2008 2007 Change 2008 Change
CREDIT QUALITY
Nonaccrual loans $552 $1,274 (57)% $787 (30)%
Accruing loans past due
90 days and over - - - - -
Total nonperforming loans 552 1,274 (57) 787 (30)
Other real estate owned 86 42 105 49 76
Total nonperforming assets $638 $1,316 (52) $836 (24)

Nonperforming assets to
total assets 0.13% 0.33% (61)% 0.19% (32)%
Allowance for loan losses
to nonperforming assets 374.7 161.2 132 284.4 32
Allowance for loan losses
to nonperforming loans 433.1 166.5 160 302.2 43
Allowance for
loan losses
to total loans 0.75 0.71 6 0.75 -

Year-to-date charge-offs $123 $36 242% $35 251%
Year-to-date recoveries 38 6 533 30 27
Year-to-date net charge-offs 85 30 183 5 1,600
Annualized YTD net
charge-offs to total loans 0.04% 0.01% 177 0.00% 1,700



SOURCE Home Bancorp, Inc.