HOME BANCORP, INC. ANNOUNCES 2023 SECOND QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND

LAFAYETTE, La., July 17, 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 second quarter of 2023. For the quarter, the Company reported net income of $9.8 million, or $1.21 per diluted common share ("diluted EPS"), down $1.5 million from $11.3 million, or $1.39 diluted EPS, for the first quarter of 2023.

"Considering everything that has happened in banking during this interest rate cycle, we're pleased with our second quarter performance," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "Like every other community bank, we've faced pressure on deposits but have so far been able to retain relationships while keeping the cost of our total deposits below 1% for the second quarter.  I think this is due to the strength of our deposit franchise, which is something we were focused on even when rates were near zero. Loan growth continued in the second quarter despite the rise in interest rates as total loans increased 7% on an annualized basis. As we move forward in the second half of 2023, we remain committed to providing exceptional service to our new and existing customers as we have for the last 115 years."

 Second Quarter 2023 Highlights

• Loans totaled $2.5 billion at June 30, 2023, up $44.4 million, or 1.8% (7% on an annualized basis) from March 31, 2023.
• Net interest income totaled $30.3 million, down $1.3 million, or 4% from the prior quarter.
• The net interest margin ("NIM") decreased 24 basis points from 4.18% for the first quarter of 2023 to 3.94%.
• The Company recorded a $511,000 provision to the allowance for loan losses primarily due to loan growth.
• Nonperforming assets totaled $12.4 million, or 0.38% of total assets, up $1.1 million, or 10%, from $11.3 million, or 0.35% of total assets, at March 31, 2023 primarily due to three credit relationships.

Loans

Loans totaled $2.5 billion at June 30, 2023, up $44.4 million, or 2%, from March 31, 2023. The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from March 31, 2023 through June 30, 2023. 

(dollars in thousands)		6/30/2023		3/31/2023		Increase (Decrease)
Real estate loans:
One- to four-family first mortgage		$           419,091		$           405,638		$     13,453		3 %
Home equity loans and lines		66,932		64,107		2,825		4
Commercial real estate		1,176,976		1,162,367		14,609		1
Construction and land		327,488		318,622		8,866		3
Multi-family residential		103,951		102,604		1,347		1
Total real estate loans		2,094,438		2,053,338		41,100		2
Other loans:
Commercial and industrial		382,292		379,119		3,173		1
Consumer		34,029		33,935		94		—
Total other loans		416,321		413,054		3,267		1
Total loans		$        2,510,759		$        2,466,392		$     44,367		2 %

The average loan yield was 5.82% for the second quarter of 2023, up 15 basis points from the first quarter of 2023. Loan growth during the second quarter of 2023 was across all loan types. The loan growth was across most of our markets. Approximately 19% of the loan growth in the second quarter of 2023 was attributable to the Houston market.

Credit Quality and Allowance for Credit Losses

Nonperforming assets ("NPAs") totaled $12.4 million, or 0.38% of total assets, at June 30, 2023, up $1.1 million, or 10%, from $11.3 million, or 0.35% of total assets, at March 31, 2023. During the second quarter of 2023, the Company recorded net loan recoveries of $10,000, compared to net loan recoveries of $5,000 during the first quarter of 2023.

The Company provisioned $511,000 to the allowance for loan losses in the second quarter of 2023. At June 30, 2023, the allowance for loan losses totaled $30.6 million, or 1.22% of total loans, compared to $30.1 million, or 1.22% of total loans, at March 31, 2023. Provisions to the allowance for loan losses are based upon, among other factors, our estimation of current expected losses in our loan portfolio, which we evaluate on a quarterly basis. Changes in expected losses consider various factors including the changing economic activity, potential mitigating effects of governmental stimulus, borrower 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 June 30, 2023 and March 31, 2023.

	June 30, 2023
(dollars in thousands)		Pass		Special Mention		Substandard		Total
One- to four-family first mortgage		$         415,162		$                 872		$              3,057		$         419,091
Home equity loans and lines		66,809		—		123		66,932
Commercial real estate		1,160,405		335		16,236		1,176,976
Construction and land		319,738		5,410		2,340		327,488
Multi-family residential		100,521		—		3,430		103,951
Commercial and industrial		377,529		2,894		1,869		382,292
Consumer		33,832		—		197		34,029
Total		$      2,473,996		$              9,511		$           27,252		$      2,510,759
	March 31, 2023
(dollars in thousands)		Pass		Special Mention		Substandard		Total
One- to four-family first mortgage		$         401,296		$              1,224		$              3,118		$         405,638
Home equity loans and lines		64,076		—		31		64,107
Commercial real estate		1,148,828		340		13,199		1,162,367
Construction and land		311,638		5,431		1,553		318,622
Multi-family residential		99,221		—		3,383		102,604
Commercial and industrial		374,364		2,783		1,972		379,119
Consumer		33,672		—		263		33,935
Total		$      2,433,095		$              9,778		$           23,519		$      2,466,392

Investment Securities

The Company's investment securities portfolio totaled $450.5 million at June 30, 2023, a decrease of $17.1 million, or 3.7% from March 31, 2023. The Company recorded no sales of available-for-sale investment securities during the three months ended June 30, 2023. During the first quarter 2023, the Company recorded a net loss of $249,000 related to the sale of available-for-sale investment securities totaling $14.0 million. At June 30, 2023, the Company had a net unrealized loss position on its investment securities of $53.2 million, compared to a net unrealized loss of $47.1 million at March 31, 2023. The Company's investment securities portfolio had an effective duration of 4.5 years at June 30, 2023 and March 31, 2023.

The following table summarizes the composition of the Company's investment securities portfolio at June 30, 2023.

(dollars in thousands)		Amortized Cost		Fair Value
Available for sale:
U.S. agency mortgage-backed		$       332,737		$       295,541
Collateralized mortgage obligations		86,478		81,327
Municipal bonds		56,316		47,855
U.S. government agency		20,080		18,588
Corporate bonds		6,981		6,085
Total available for sale		$       502,592		$       449,396
Held to maturity:
Municipal bonds		$           1,066		$           1,065
Total held to maturity		$           1,066		$           1,065

Approximately 30% of the investment securities portfolio was pledged as of June 30, 2023.  As of  June 30, 2023 and March 31, 2023, the Company had $134.9 million and $146.5 million, respectively, of securities pledged to secure public deposits.

Deposits

Total deposits were $2.6 billion at June 30, 2023, down $6.0 million, or less than 1%, from March 31, 2023. Non-maturity deposits decreased $98.6 million, or 5% during the second quarter of 2023 to $2.1 billion. The following table summarizes the changes in the Company's deposits from March 31, 2023 to June 30, 2023.

(dollars in thousands)		6/30/2023		3/31/2023		Increase (Decrease)
Demand deposits		$           816,555		$           854,736		$            (38,181)		(4) %
Savings		261,780		288,788		(27,008)		(9)
Money market		363,801		384,809		(21,008)		(5)
NOW		645,087		657,499		(12,412)		(2)
Certificates of deposit		464,495		371,912		92,583		25
Total deposits		$        2,551,718		$        2,557,744		$              (6,026)		— %

The average rate on interest-bearing deposits increased 53 basis points from 0.77% for the first quarter of 2023 to 1.30% for the second quarter of 2023. At June 30, 2023, certificates of deposit maturing within the next 12 months totaled $402.3 million.

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.

		June 30, 2023		March 31, 2023
Individuals		51 %		51 %
Small businesses		39		39
Public funds		8		8
Broker		2		2
Total		100 %		100 %

The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $735.4 million at June 30, 2023 and $778.0 million at March 31, 2023. Public funds in excess of the FDIC insurance limits are fully collateralized.

Net Interest Income

The net interest margin ("NIM") decreased 24 basis points from 4.18% for the first quarter of 2023 to 3.94% for the second quarter of 2023 primarily due to an increase in the average cost of interest-bearing liabilities, which was partially offset with an increase in the average yield on interest-earning assets. The increase in average cost of interest-bearing liabilities was primarily due to the higher costs on short-term FHLB borrowings and deposits in the second quarter of 2023.

The average loan yield was 5.82% for the second quarter of 2023, up 15 basis points from the first quarter of 2023, primarily reflecting increased market rates of interest on variable loans coupled with new loan originations at higher market  rates during the period.

Average other interest-earning assets were $52.3 million for the second quarter of 2023, down $1.2 million, or 2%, from the first quarter of 2023 primarily due to a reallocation of certain other interest-earning assets.

Loan accretion income from acquired loans totaled $647,000 for the second quarter of 2023, down $21,000, or 3%, from the first quarter of 2023.

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%.

		Quarter Ended
		6/30/2023						3/31/2023
(dollars in thousands)		Average Balance		Interest		Average Yield/ Rate		Average Balance		Interest		Average Yield/ Rate
Interest-earning assets:
Loans receivable		$  2,491,029		$       36,530		5.82 %		$  2,437,770		$       34,498		5.67 %
Investment securities (TE)		507,050		2,986		2.37		535,195		3,142		2.38
Other interest-earning assets		52,256		555		4.26		53,456		475		3.60
Total interest-earning assets		$  3,050,335		$       40,071		5.22 %		$  3,026,421		$       38,115		5.05 %
Interest-bearing liabilities:
Deposits:
Savings, checking, and money market		$  1,300,245		$          3,023		0.93 %		$  1,349,185		$          2,048		0.62 %
Certificates of deposit		407,038		2,524		2.49		349,683		1,192		1.38
Total interest-bearing deposits		1,707,283		5,547		1.30		1,698,868		3,240		0.77
Other borrowings		5,651		55		3.88		5,539		53		3.89
Subordinated debt		54,098		850		6.29		54,041		851		6.30
FHLB advances		272,783		3,313		4.81		215,478		2,376		4.41
Total interest-bearing liabilities		$  2,039,815		$          9,765		1.91 %		$  1,973,926		$          6,520		1.33 %
Noninterest-bearing deposits		$       831,517						$       879,501
Net interest spread (TE)						3.31 %						3.72 %
Net interest margin (TE)						3.94 %						4.18 %

Noninterest Income

Noninterest income for the second quarter of 2023 totaled $3.4 million, up $137,000, or 4%, from the first quarter of 2023. The increase was related primarily to the absence of a net loss on sale of securities totaling $249,000 during the first quarter of 2023, which was partially offset by decreases in bank card fees of $72,000 and gain on sale of loans of $31,000 for the second quarter of 2023 compared to the first quarter of 2023.

Noninterest Expense

Noninterest expense for the second quarter of 2023 totaled $21.0 million, up $1.0 million, or 5%, from the first quarter of 2023. The increase was primarily related to foreclosed assets expense (up $789,000 primarily due to the absence of a $739,000 recovery of a previous loss on a foreclosed asset in the first quarter of 2023), other expenses (up $167,000), compensation and benefits expense (up $162,000), and marketing and advertising expenses (up $135,000), which were partially offset by a decrease in data processing and communication fees and expenses (down $189,000) during the second quarter of 2023.

Capital and Liquidity

At June 30, 2023, shareholders' equity totaled $346.1 million, up $1.0 million, or less than 1%, compared to $345.1 million at March 31, 2023. The increase was primarily due to the Company's earnings of $9.8 million in the quarter, which was partially offset with an increase in the accumulated other comprehensive loss on available for sale investment securities and repurchase of the Company's common shares of stock during the second quarter of 2023. The market value of the Company's available for sale securities at June 30, 2023 decreased $6.1 million, or 13%, compared to $47.1 million at March 31, 2023. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 10.78% and 14.07%, respectively, at June 30, 2023, compared to 10.69% and 14.00%, respectively, at March 31, 2023.

The following table summarizes the Company's primary and secondary sources of liquidity which were available at June 30, 2023.

(dollars in thousands)		June 30, 2023
Cash and cash equivalents		$                              96,873
Unencumbered investment securities, amortized cost		72,354
FHLB advance availability		897,776
Amounts available from unsecured lines of credit		55,000
Federal Reserve bank term funding program		109,379
Federal Reserve discount window availability		500
Total primary and secondary sources of available liquidity		$                         1,231,882

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 August 11, 2023, to shareholders of record as of July 31, 2023.

The Company repurchased 99,734 shares of its common stock during the second quarter of 2023 at an average price per share of $31.58. An additional 85,785 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 $42.22 and $31.59, respectively, at June 30, 2023.

Conference Call

Executive management will host a conference call to discuss second quarter 2023 results on Tuesday, July 18, 2023 at 10:30 a.m. CDT. Analysts, investors and interested parties may attend the conference call by dialing toll free 1.848.488.9160 (US Local/International) or 1.877.550.1858 (US Toll Free). The investor presentation can be accessed the day of the presentation on 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,  and certain acquisition related metrics. Management believes the presentation of this non-GAAP financial information provides useful information that is helpful to a full understanding of the Company's financial position and operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP financial information presented by other companies. A reconciliation on non-GAAP information included herein to GAAP is presented below.

		Quarter Ended
(dollars in thousands, except per share data)		6/30/2023		3/31/2023		6/30/2022
Reported net income		$           9,781		$          11,320		$           8,461
Add: Core deposit intangible amortization, net tax		307		352		359
Non-GAAP tangible income		$         10,088		$          11,672		$           8,820
Total assets		$    3,290,153		$     3,266,970		$    3,362,216
Less: Intangible assets		87,138		87,527		88,309
Non-GAAP tangible assets		$    3,203,015		$     3,179,443		$    3,273,907
Total shareholders' equity		$       346,117		$        345,100		$       329,124
Less: Intangible assets		87,138		87,527		88,309
Non-GAAP tangible shareholders' equity		$       258,979		$        257,573		$       240,815
Return on average equity		11.26 %		13.53 %		10.20 %
Add: Average intangible assets		4.24		5.29		4.23
Non-GAAP return on average tangible common equity		15.50 %		18.82 %		14.43 %
Common equity ratio		10.52 %		10.56 %		9.79 %
Less: Intangible assets		2.43		2.46		2.43
Non-GAAP tangible common equity ratio		8.09 %		8.10 %		7.36 %
Book value per share		$           42.22		$            41.66		$           39.44
Less: Intangible assets		10.63		10.57		10.58
Non-GAAP tangible book value per share		$           31.59		$            31.09		$           28.86

 

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, 2022 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)		6/30/2023		3/31/2023		% Change		6/30/2022
Assets
Cash and cash equivalents		$             96,873		$           107,171		(10) %		$           444,151
Interest-bearing deposits in banks		99		349		(72)		349
Investment securities available for sale, at fair value		449,396		466,506		(4)		480,007
Investment securities held to maturity		1,066		1,070		—		2,086
Mortgage loans held for sale		538		473		14		1,444
Loans, net of unearned income		2,510,759		2,466,392		2		2,224,655
Allowance for loan losses		(30,639)		(30,118)		2		(26,020)
Total loans, net of allowance for loan losses		2,480,120		2,436,274		2		2,198,635
Office properties and equipment, net		42,904		42,844		—		43,979
Cash surrender value of bank-owned life insurance		46,789		46,528		1		40,788
Goodwill and core deposit intangibles		87,138		87,527		—		88,309
Accrued interest receivable and other assets		85,230		78,228		9		62,468
Total Assets		$        3,290,153		$        3,266,970		1		$        3,362,216
Liabilities
Deposits		$        2,551,718		$        2,557,744		— %		$        2,920,376
Other Borrowings		5,539		5,539		—		5,539
Subordinated debt, net of issuance cost		54,133		54,073		—		53,926
Federal Home Loan Bank advances		305,297		276,727		10		25,307
Accrued interest payable and other liabilities		27,349		27,787		(2)		27,944
Total Liabilities		2,944,036		2,921,870		1		3,033,092
Shareholders' Equity
Common stock		82		83		(1)		84
Additional paid-in capital		164,945		165,470		—		164,177
Common stock acquired by benefit plans		(1,878)		(1,969)		5		(2,240)
Retained earnings		220,801		215,290		3		191,114
Accumulated other comprehensive loss		(37,833)		(33,774)		(12)		(24,011)
Total Shareholders' Equity		346,117		345,100		—		329,124
Total Liabilities and Shareholders' Equity		$        3,290,153		$        3,266,970		1		$        3,362,216

 

HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
		Quarter Ended
(dollars in thousands, except per share data)		6/30/2023		3/31/2023		% Change		6/30/2022		% Change
Interest Income
Loans, including fees		$           36,530		$           34,498		6 %		$           27,304		34 %
Investment securities		2,986		3,142		(5)		2,338		28
Other investments and deposits		555		475		17		863		(36)
Total interest income		40,071		38,115		5		30,505		31
Interest Expense
Deposits		5,547		3,240		71 %		1,103		403 %
Other borrowings		55		53		4		54		2
Subordinated debt expense		850		851		—		—		—
Federal Home Loan Bank advances		3,313		2,376		39		107		2996
Total interest expense		9,765		6,520		50		1,264		673
Net interest income		30,306		31,595		(4)		29,241		4
Provision for loan losses		511		814		(37)		591		(14)
Net interest income after provision for loan losses		29,795		30,781		(3)		28,650		4
Noninterest Income
Service fees and charges		1,230		1,250		(2) %		1,257		(2) %
Bank card fees		1,715		1,787		(4)		1,636		5
Gain on sale of loans, net		26		57		(54)		264		(90)
Income from bank-owned life insurance		260		253		3		213		22
Loss on sale of securities, net		—		(249)		100		—		—
Loss on sale of assets, net		(3)		(17)		82		(6)		50
Other income		220		230		(4)		322		(32)
Total noninterest income		3,448		3,311		4		3,686		(6)
Noninterest Expense
Compensation and benefits		12,601		12,439		1 %		12,583		— %
Occupancy		2,447		2,350		4		2,354		4
Marketing and advertising		442		307		44		648		(32)
Data processing and communication		2,132		2,321		(8)		2,533		(16)
Professional fees		459		364		26		475		(3)
Forms, printing and supplies		204		187		9		253		(19)
Franchise and shares tax		541		541		—		391		38
Regulatory fees		401		539		(26)		698		(43)
Foreclosed assets, net		50		(739)		107		(10)		600
Amortization of acquisition intangible		389		446		(13)		454		(14)
Provision for credit losses on unfunded commitments		151		210		(28)		—		—
Other expenses		1,142		975		17		1,386		(18)
Total noninterest expense		20,959		19,940		5		21,765		(4)
Income before income tax expense		12,284		14,152		(13)		10,571		16
Income tax expense		2,503		2,832		(12)		2,110		19
Net income		$              9,781		$           11,320		(14)		$              8,461		16
Earnings per share - basic		$                1.22		$                1.40		(13) %		$                1.04		17 %
Earnings per share - diluted		$                1.21		$                1.39		(13) %		$                1.03		17 %
Cash dividends declared per common share		$                0.25		$                0.25		— %		$                0.23		9 %

 

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
(Unaudited)
		Quarter Ended
(dollars in thousands, except per share data)		6/30/2023		3/31/2023		% Change		6/30/2022		% Change
EARNINGS DATA
Total interest income		$        40,071		$        38,115		5 %		$        30,505		31 %
Total interest expense		9,765		6,520		50		1,264		673
Net interest income		30,306		31,595		(4)		29,241		4
Provision for loan losses		511		814		(37)		591		(14)
Total noninterest income		3,448		3,311		4		3,686		(6)
Total noninterest expense		20,959		19,940		5		21,765		(4)
Income tax expense		2,503		2,832		(12)		2,110		19
Net income		$          9,781		$        11,320		(14)		$          8,461		16
AVERAGE BALANCE SHEET DATA
Total assets		$  3,250,190		$  3,219,856		1 %		$  3,295,196		(1) %
Total interest-earning assets		3,050,335		3,026,421		1		3,088,839		(1)
Total loans		2,491,029		2,437,770		2		2,190,721		14
PPP loans		6,100		6,386		(4)		15,463		(61)
Total interest-bearing deposits		1,707,283		1,698,868		—		1,990,485		(14)
Total interest-bearing liabilities		2,039,815		1,973,926		3		2,022,479		1
Total deposits		2,538,800		2,578,369		(2)		2,906,568		(13)
Total shareholders' equity		348,414		339,311		3		332,640		5
PER SHARE DATA
Earnings per share - basic		$            1.22		$            1.40		(13) %		$            1.04		17 %
Earnings per share - diluted		1.21		1.39		(13)		1.03		17
Book value at period end		42.22		41.66		1		39.44		7
Tangible book value at period end		31.59		31.09		2		28.86		9
Shares outstanding at period end		8,197,859		8,284,130		(1)		8,344,095		(2)
Weighted average shares outstanding
Basic		8,042,434		8,087,524		(1) %		8,129,340		(1) %
Diluted		8,079,205		8,136,583		(1)		8,185,595		(1)
SELECTED RATIOS (1)
Return on average assets		1.21 %		1.43 %		(15) %		1.03 %		17 %
Return on average equity		11.26		13.53		(17)		10.20		10
Common equity ratio		10.52		10.56		—		9.79		7
Efficiency ratio (2)		62.09		57.12		9		66.10		(6)
Average equity to average assets		10.72		10.54		2		10.09		6
Tier 1 leverage capital ratio (3)		10.78		10.69		1		9.30		16
Total risk-based capital ratio (3)		14.07		14.00		1		13.74		2
Net interest margin (4)		3.94		4.18		(6)		3.76		5
SELECTED NON-GAAP RATIOS (1)
Tangible common equity ratio (5)		8.09 %		8.10 %		— %		7.36 %		10 %
Return on average tangible common equity (6)		15.50		18.82		(18)		14.43		7

(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)
		6/30/2023						3/31/2023						6/30/2022
(dollars in thousands)		Originated		Acquired		Total		Originated		Acquired		Total		Originated		Acquired		Total
CREDIT QUALITY (1)
Nonaccrual loans(2)		$           6,806		$           5,364		$     12,170		$           5,546		$           5,686		$     11,232		$           5,332		$        13,165		$     18,497
Accruing loans 90 days or more past due		26		—		26		—		—		—		8		—		8
Total nonperforming loans		6,832		5,364		12,196		5,546		5,686		11,232		5,340		13,165		18,505
Foreclosed assets and ORE		121		80		201		—		80		80		—		277		277
Total nonperforming assets		6,953		5,444		12,397		5,546		5,766		11,312		5,340		13,442		18,782
Performing troubled debt restructurings		—		—		—		—		—		—		3,939		1,063		5,002
Total nonperforming assets and troubled debt restructurings		$           6,953		$           5,444		$     12,397		$           5,546		$           5,766		$     11,312		$           9,279		$        14,505		$     23,784
Nonperforming assets to total assets						0.38 %						0.35 %						0.56 %
Nonperforming loans to total assets						0.37						0.34						0.55
Nonperforming loans to total loans						0.49						0.46						0.83

(1)	It is our policy to cease accruing interest on loans 90 days or more past due, with certain limited exceptions. Nonperforming assets consist of nonperforming loans, foreclosed assets and surplus 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 $5.3 million at June 30, 2022. Acquired restructured loans placed on nonaccrual totaled $2.8 million at June 30, 2022. With the adoption of ASU 2022-02, effective January 1, 2023, TDR accounting has been eliminated.

 

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION - CONTINUED
(Unaudited)
		6/30/2023						3/31/2023						6/30/2022
		Collectively Evaluated		Individually Evaluated		Total		Collectively Evaluated		Individually Evaluated		Total		Collectively Evaluated		Individually Evaluated		Total
ALLOWANCE FOR CREDIT LOSSES
One- to four-family first mortgage		$           3,200		$                —		$       3,200		$           3,356		$                —		$       3,356		$           2,158		$                —		$       2,158
Home equity loans and lines		707		—		707		753		—		753		491		—		491
Commercial real estate		14,299		499		14,798		13,344		450		13,794		12,068		1,193		13,261
Construction and land		4,822		—		4,822		4,921		—		4,921		4,689		—		4,689
Multi-family residential		512		—		512		608		—		608		526		—		526
Commercial and industrial		5,734		121		5,855		5,831		143		5,974		3,654		591		4,245
Consumer		745		—		745		712		—		712		650		—		650
Total allowance for credit losses		$        30,019		$              620		$     30,639		$        29,525		$              593		$     30,118		$        24,236		$           1,784		$     26,020
Unfunded lending commitments(3)		2,454		—		2,454		2,303		—		2,303		2,117		—		2,117
Total allowance for credit losses		$        32,473		$              620		$     33,093		$        31,828		$              593		$     32,421		$        26,353		$           1,784		$     28,137
Allowance for loan losses to nonperforming assets						247.15 %						266.25 %						138.54 %
Allowance for loan losses to nonperforming loans						251.22 %						268.14 %						140.61 %
Allowance for loan losses to total loans						1.22 %						1.22 %						1.17 %
Allowance for credit losses to total loans						1.32 %						1.31 %						1.26 %
Year-to-date loan charge-offs						$          137						$             93						$          844
Year-to-date loan recoveries						152						98						554
Year-to-date net loan recoveries (charge-offs)						$             15						$               5						$        (290)
Annualized YTD net loan recoveries (charge-offs) to average loans						— %						— %						(0.03) %

(3)	The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.

 

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SOURCE Home Bancorp, Inc.