Home Bancorp, Inc. is a Louisiana corporation and the holding company for
Home Bank, N.A. The Bank, which is headquartered in Lafayette, Louisiana, and
is a wholly owned subsidiary of the Company, currently conducts business through
30 banking offices in the Greater Lafayette, Baton Rouge, Greater New Orleans
and Northshore (of Lake Pontchartrain) regions of south Louisiana and the Natchez
and Vicksburg regions of west Mississippi.
As of March 2, 2015, the Bank converted from a federal savings bank to a national
bank with the title “Home Bank, National Association.” As a result
of the Bank’s conversion to a national bank, the Company is now subject
to regulation as a bank holding company by the Board of Governors of the Federal
Reserve System (the “FRB” or the “Federal Reserve”).
Prior to the Bank’s charter conversion, the Company was regulated by the
FRB as a savings and loan holding company.
The Bank is primarily engaged in attracting deposits from the general public
and using those funds to invest in loans and securities. Our principal sources
of funds are customer deposits, repayments of loans, repayments of investments
and funds borrowed from outside sources such as the Federal Home Loan Bank (“FHLB”)
of Dallas. These funds are primarily used for the origination of loans, including
one-to-four-family first mortgage loans, home equity loans and lines, commercial
real estate loans, construction and land loans, multi-family residential loans,
commercial and industrial loans and consumer loans. The Bank derives its income
principally from interest earned on loans and investment securities and, to
a lesser extent, from fees received in connection with the origination of loans,
service charges on deposit accounts and for other services. The Bank’s
primary expenses are general operating expenses, especially compensation and
benefits.
We are an active originator of residential home mortgage loans in our market
areas. Historically, the Bank was a traditional thrift institution with an emphasis
on fixed-rate long-term single-family residential first mortgage loans. Over
the course of the last decade plus, we have shifted our emphasis in the loan
products we offer and increased our efforts to originate commercial real estate
loans and commercial and industrial loans. Commercial real estate loans and
commercial and industrial loans are deemed attractive due to their generally
higher yields and shorter anticipated lives compared to single-family residential
mortgage loans. In addition, the Bank views commercial real estate and commercial
and industrial loans as attractive lending products because the Bank’s
commercial borrowers typically maintain deposit accounts at the Bank, increasing
the Bank’s core deposits.
Home Bank, N.A. is subject to federal regulation and oversight by the Office
of the Comptroller of the Currency (“OCC”). The Bank is also subject
to regulation and examination by the FDIC, which insures the deposits of the
Bank to the maximum extent permitted by law, and requirements established by
the Federal Reserve.
Federal law provides the federal banking regulators with substantial enforcement
powers. The OCC’s enforcement authority includes, among other things,
the ability to assess civil money penalties, to issue cease and desist or removal
orders and to initiate injunctive actions. In general, these enforcement actions
may be initiated for violations of laws and regulations and unsafe or unsound
practices. Other actions or inactions may provide the basis for enforcement
action, including misleading or untimely reports filed with the OCC. The FRB
has comparable enforcement authority over the Company. Any change in such regulations
could have a material adverse impact on the Company and the Bank.
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