HOME BANCORP, INC. ANNOUNCES 2023 THIRD QUARTER RESULTS, NEW SHARE REPURCHASE PLAN AND DECLARES QUARTERLY DIVIDEND

LAFAYETTE, La., Oct. 18, 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 third quarter of 2023. For the quarter, the Company reported net income of $9.8 million, or $1.22 per diluted common share ("diluted EPS"), down $27,000 from $9.8 million, or $1.21 diluted EPS, for the second quarter of 2023.

"Home Bank has delivered exceptional results during this cycle of rapidly increasing interest rates and the third quarter was a continuation of that success. We produced above average profitability metrics, grew both loans and deposits, and maintained strong credit quality." said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "Strong customer relationships, built over years, have allowed us to retain deposits while still maintaining discipline on interest expense. We are confident that our long history and culture of relationship banking have positioned Home Bank to continue to thrive both in the near and long term."

 Third Quarter 2023 Highlights

  • Loans totaled $2.6 billion at September 30, 2023, up $58.3 million, or 2.3% (9% on an annualized basis) from June 30, 2023.
  • Deposits totaled $2.6 billion at September 30, 2023, up  $45.8 million, or 2%, from June 30, 2023.
  • Net interest income totaled $29.5 million, down $797,000, or 3% from the prior quarter.
  • The net interest margin ("NIM") was 3.75% in the third quarter of 2023 compared to 3.94% in the second quarter of 2023.
  • The Company recorded a $351,000 provision to the allowance for loan losses primarily due to loan growth.
  • Nonperforming assets totaled $12.3 million, or 0.37% of total assets compared to $12.4 million, or 0.38% of total assets, at June 30, 2023.

Loans

Loans totaled $2.6 billion at September 30, 2023, up $58.3 million, or 2%, from June 30, 2023. The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from June 30, 2023 through September 30, 2023. 

(dollars in thousands)


9/30/2023


6/30/2023


Increase (Decrease)

Real estate loans:









One- to four-family first mortgage


$           432,092


$           419,091


$     13,001


3 %

Home equity loans and lines


69,350


66,932


2,418


4

Commercial real estate


1,178,111


1,176,976


1,135


Construction and land


342,711


327,488


15,223


5

Multi-family residential


106,411


103,951


2,460


2

Total real estate loans


2,128,675


2,094,438


34,237


2

Other loans:









Commercial and industrial


407,189


382,292


24,897


7

Consumer


33,230


34,029


(799)


(2)

Total other loans


440,419


416,321


24,098


6

Total loans


$        2,569,094


$        2,510,759


$     58,335


2 %

 

The average loan yield was 5.95% for the third quarter of 2023, up 13 basis points, from the second quarter of 2023. Loan growth during the third quarter of 2023 was across all loan types with the exception of consumer loans. Loans grew in the third quarter of 2023 across most of our markets with approximately 35% of the growth attributable to the Houston market.

Credit Quality and Allowance for Credit Losses

Nonperforming assets ("NPAs") totaled $12.3 million, or 0.37% of total assets, at September 30, 2023, down $86,000, or 1%, from $12.4 million, or 0.38% of total assets, at June 30, 2023. During the third quarter of 2023, the Company recorded net loan recoveries of $132,000, compared to net loan recoveries of $10,000 during the second quarter of 2023.

The Company provisioned $351,000 to the allowance for loan losses in the third quarter of 2023. At September 30, 2023, the allowance for loan losses totaled $31.1 million, or 1.21% of total loans, compared to $30.6 million, or 1.22% of total loans, at June 30, 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 September 30, 2023 and June 30, 2023.


September 30, 2023

(dollars in thousands)


Pass


Special

Mention


Substandard


Total

One- to four-family first mortgage


$         429,011


$                 870


$              2,211


$         432,092

Home equity loans and lines


69,225



125


69,350

Commercial real estate


1,162,095


330


15,686


1,178,111

Construction and land


330,512


5,388


6,811


342,711

Multi-family residential


102,907



3,504


106,411

Commercial and industrial


402,252


2,458


2,479


407,189

Consumer


33,000



230


33,230

Total


$      2,529,002


$              9,046


$           31,046


$      2,569,094











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

 

Investment Securities

The Company's investment securities portfolio totaled $428.1 million at September 30, 2023, a decrease of $22.4 million, or 5.0%, from June 30, 2023. At September 30, 2023, the Company had a net unrealized loss position on its investment securities of $63.4 million, compared to a net unrealized loss of $53.2 million at June 30, 2023. The Company's investment securities portfolio had an effective duration of 4.5 years at September 30, 2023 and June 30, 2023.

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

(dollars in thousands)


Amortized

Cost


Fair Value

Available for sale:





U.S. agency mortgage-backed


$       324,459


$       280,171

Collateralized mortgage obligations


84,009


78,279

Municipal bonds


55,705


45,037

U.S. government agency


19,278


17,444

Corporate bonds


6,982


6,088

Total available for sale


$       490,433


$       427,019

Held to maturity:





Municipal bonds


$           1,065


$           1,052

Total held to maturity


$           1,065


$           1,052

 

Approximately 30% of the investment securities portfolio was pledged as of September 30, 2023. As of September 30, 2023 and June 30, 2023, the Company had $127.9 million and $134.9 million, respectively, of securities pledged to secure public deposits.

Deposits

Total deposits were $2.6 billion at September 30, 2023, up $45.8 million, or 2%, from June 30, 2023. Non-maturity deposits decreased $46.2 million, or 2% during the third quarter of 2023 to $2.0 billion. The following table summarizes the changes in the Company's deposits from June 30, 2023 to September 30, 2023.

(dollars in thousands)


9/30/2023


6/30/2023


Increase (Decrease)

Demand deposits


$           785,448


$           816,555


$            (31,107)


(4) %

Savings


246,402


261,780


(15,378)


(6)

Money market


392,174


363,801


28,373


8

NOW


617,003


645,087


(28,084)


(4)

Certificates of deposit


556,457


464,495


91,962


20

Total deposits


$        2,597,484


$        2,551,718


$             45,766


2 %

 

The average rate on interest-bearing deposits increased 54 basis points from 1.30% for the second quarter of 2023 to 1.84% for the third quarter of 2023. At September 30, 2023, certificates of deposit maturing within the next 12 months totaled $460.6 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.



September 30, 2023


June 30, 2023

Individuals


52 %


51 %

Small businesses


39


39

Public funds


7


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 $755.5 million at September 30, 2023 and $735.4 million at June 30, 2023. Public funds in excess of the FDIC insurance limits are fully collateralized.

Net Interest Income

The net interest margin ("NIM") decreased 19 basis points from 3.94% for the second quarter of 2023 to 3.75% for the third quarter of 2023 primarily due to an increase in the average cost of interest-bearing deposits, which was partially offset with an increase in the average yield on interest-earning assets. The average cost of interest-bearing deposits increased by 54 basis points in the third quarter of 2023 and our cost of deposits increased by $2.6 million, or 47%, in the third quarter of 2023 compared to the second quarter of 2023.  The increase in deposit costs reflects the rise in market rates of interest as well as a migration to interest-bearing deposits from non-interest bearing deposits.

The average loan yield was 5.95% for the third quarter of 2023, up 13 basis points from the second quarter of 2023, primarily reflecting increased rates on variable loans coupled with new loan originations at higher market rates during the period.

Average other interest-earning assets were $54.0 million for the third quarter of 2023, up $1.8 million, or 3%, from the second quarter of 2023 primarily due to a reallocation of certain other interest-earning assets.

Loan accretion income from acquired loans totaled $634,000 for the third quarter of 2023, down $13,000, or 2%, from the second 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



9/30/2023


6/30/2023

(dollars in thousands)


Average

Balance


Interest


Average

Yield/ Rate


Average

Balance


Interest


Average

Yield/ Rate

Interest-earning assets:













Loans receivable


$  2,538,218


$       38,490


5.95 %


$  2,491,029


$       36,530


5.82 %

Investment securities (TE)


495,219


2,939


2.39


507,050


2,986


2.37

Other interest-earning assets


54,015


649


4.77


52,256


555


4.26

Total interest-earning assets


$  3,087,452


$       42,078


5.36 %


$  3,050,335


$       40,071


5.22 %

Interest-bearing liabilities:













Deposits:













Savings, checking, and money market


$  1,256,885


$          3,791


1.20 %


$  1,300,245


$          3,023


0.93 %

Certificates of deposit


511,754


4,390


3.40


407,038


2,524


2.49

Total interest-bearing deposits


1,768,639


8,181


1.84


1,707,283


5,547


1.30

Other borrowings


5,539


53


3.80


5,651


55


3.88

Subordinated debt


54,159


845


6.24


54,098


850


6.29

FHLB advances


273,087


3,490


5.01


272,783


3,313


4.81

Total interest-bearing liabilities


$  2,101,424


$       12,569


2.37 %


$  2,039,815


$          9,765


1.91 %

Noninterest-bearing deposits


$       799,534






$       831,517





Net interest spread (TE)






2.99 %






3.31 %

Net interest margin (TE)






3.75 %






3.94 %

 

Noninterest Income

Noninterest income for the third quarter of 2023 totaled $4.4 million, up $951,000, or 28%, from the second quarter of 2023. The increase was related primarily to gains on sale of loans (up $661,000 of which $640,000 was related to the sale of SBA loans during the third quarter of 2023) and bank card fees (up $188,000) for the third quarter of 2023 compared to the second quarter of 2023.

Noninterest Expense

Noninterest expense for the third quarter of 2023 totaled $21.3 million, up $379,000, or 2%, from the second quarter of 2023. The increase was primarily related to data processing and communication expenses (up $364,000) and marketing and advertising expenses (up $196,000), which were partially offset by the absence of provision for credit losses on unfunded commitments (down $151,000) and a reduction in compensation and benefits expense (down $109,00) during the third quarter of 2023.

Capital and Liquidity

At September 30, 2023, shareholders' equity totaled $345.3 million, down $785,000, or less than 1%, compared to $346.1 million at June 30, 2023. The decrease was primarily due to the increase in accumulated other comprehensive loss on available for sale investment securities, shareholder dividends and repurchases of shares of the Company's common stock, which were partially offset by the Company's earnings of $9.8 million during the third quarter of 2023. The market value of the Company's available for sale securities at September 30, 2023 decreased $10.2 million, or 19%, during the third quarter of 2023. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 10.71% and 13.73%, respectively, at September 30, 2023, compared to 10.78% and 14.07%, respectively, at June 30, 2023.

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

(dollars in thousands)


September 30, 2023

Cash and cash equivalents


$                              84,520

Unencumbered investment securities, amortized cost


79,015

FHLB advance availability


914,064

Amounts available from unsecured lines of credit


55,000

Federal Reserve bank term funding program


106,140

Federal Reserve discount window availability


500

Total primary and secondary sources of available liquidity


$                         1,239,239

 

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 November 9, 2023, to shareholders of record as of October 30, 2023. 

The Company also announced that the Board of Directors approved a new share repurchase plan (the "2023 Repurchase Plan"). Under the 2023 Repurchase Plan, the Company may purchase up to 405,000 shares, or approximately 5% of the Company's outstanding common stock. Share repurchases under the 2023 Repurchase Plan may commence upon the completion of the Company's 2021 Repurchase Plan. As of September 30, 2023, there were 47,980 shares remaining that may be repurchased under the 2021 Repurchase Plan. The repurchase plans do not include specific price targets and may be executed through the open market or privately-negotiated transactions depending upon market conditions and other factors. The repurchase plans have no time limit and may be suspended or discontinued at any time.

The Company repurchased 37,805 shares of its common stock during the third quarter of 2023 at an average price per share of $32.63. An additional 47,980 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 $42.30 and $31.67, respectively, at September 30, 2023.

Conference Call

Executive management will host a conference call to discuss third quarter 2023 results on Thursday, October 19, 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. 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)


9/30/2023


6/30/2023


9/30/2022

Reported net income


$           9,754


$            9,781


$         10,434

Add: Core deposit intangible amortization, net tax


307


307


358

Non-GAAP tangible income


$         10,061


$          10,088


$         10,792








Total assets


$    3,317,729


$     3,290,153


$    3,167,666

Less: Intangible assets


86,749


87,138


87,839

Non-GAAP tangible assets


$    3,230,980


$     3,203,015


$    3,079,827








Total shareholders' equity


$       345,332


$        346,117


$       316,656

Less: Intangible assets


86,749


87,138


87,839

Non-GAAP tangible shareholders' equity


$       258,583


$        258,979


$       228,817








Return on average equity


11.04 %


11.26 %


12.35 %

Add: Average intangible assets


4.11


4.24


4.99

Non-GAAP return on average tangible common equity


15.15 %


15.50 %


17.34 %








Common equity ratio


10.41 %


10.52 %


10.00 %

Less: Intangible assets


2.41


2.43


2.57

Non-GAAP tangible common equity ratio


8.00 %


8.09 %


7.43 %








Book value per share


$           42.30


$            42.22


$           38.27

Less: Intangible assets


10.63


10.63


10.61

Non-GAAP tangible book value per share


$           31.67


$            31.59


$           27.66

 

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)


9/30/2023


6/30/2023


%

Change


9/30/2022

Assets









Cash and cash equivalents


$             84,520


$             96,873


(13) %


$           150,556

Interest-bearing deposits in banks


99


99



349

Investment securities available for sale, at fair value


427,019


449,396


(5)


492,758

Investment securities held to maturity


1,065


1,066



1,080

Mortgage loans held for sale


467


538


(13)


169

Loans, net of unearned income


2,569,094


2,510,759


2


2,303,279

Allowance for loan losses


(31,123)


(30,639)


2


(27,351)

Total loans, net of allowance for loan losses


2,537,971


2,480,120


2


2,275,928

Office properties and equipment, net


42,402


42,904


(1)


43,685

Cash surrender value of bank-owned life insurance


47,054


46,789


1


46,019

Goodwill and core deposit intangibles


86,749


87,138



87,839

Accrued interest receivable and other assets


90,383


85,230


6


69,283

Total Assets


$        3,317,729


$        3,290,153


1


$        3,167,666










Liabilities









Deposits


$        2,597,484


$        2,551,718


2 %


$        2,738,424

Other Borrowings


5,539


5,539



5,539

Subordinated debt, net of issuance cost


54,187


54,133



53,958

Federal Home Loan Bank advances


283,826


305,297


(7)


24,816

Accrued interest payable and other liabilities


31,361


27,349


15


28,273

Total Liabilities


2,972,397


2,944,036


1


2,851,010










Shareholders' Equity









Common stock


81


82


(1)


83

Additional paid-in capital


165,149


164,945



164,024

Common stock acquired by benefit plans


(1,787)


(1,878)


5


(2,150)

Retained earnings


227,649


220,801


3


197,553

Accumulated other comprehensive loss


(45,760)


(37,833)


(21)


(42,854)

Total Shareholders' Equity


345,332


346,117



316,656

Total Liabilities and Shareholders' Equity


$        3,317,729


$        3,290,153


1


$        3,167,666

 

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME

(Unaudited)




Quarter Ended

(dollars in thousands, except per share data)


9/30/2023


6/30/2023


%

Change


9/30/2022


%

Change

Interest Income











Loans, including fees


$           38,490


$           36,530


5 %


$           29,859


29 %

Investment securities


2,939


2,986


(2)


2,958


(1)

Other investments and deposits


649


555


17


1,447


(55)

Total interest income


42,078


40,071


5


34,264


23

Interest Expense











Deposits


8,181


5,547


47 %


1,270


544 %

Other borrowings


53


55


(4)


53


Subordinated debt expense


845


850


(1)


859


(2)

Federal Home Loan Bank advances


3,490


3,313


5


105


3224

Total interest expense


12,569


9,765


29


2,287


450

Net interest income


29,509


30,306


(3)


31,977


(8)

Provision for loan losses


351


511


(31)


1,696


(79)

Net interest income after provision for loan losses


29,158


29,795


(2)


30,281


(4)

Noninterest Income











Service fees and charges


1,277


1,230


4 %


1,300


(2) %

Bank card fees


1,903


1,715


11


1,623


17

Gain on sale of loans, net


687


26


2542


78


781

Income from bank-owned life insurance


265


260


2


231


15

(Loss) gain on sale of assets, net



(3)


100


18


(100)

Other income


267


220


21


224


19

Total noninterest income


4,399


3,448


28


3,474


27

Noninterest Expense











Compensation and benefits


12,492


12,601


(1) %


12,128


3 %

Occupancy


2,410


2,447


(2)


2,297


5

Marketing and advertising


638


442


44


658


(3)

Data processing and communication


2,496


2,132


17


2,284


9

Professional fees


402


459


(12)


331


21

Forms, printing and supplies


195


204


(4)


185


5

Franchise and shares tax


542


541



633


(14)

Regulatory fees


511


401


27


467


9

Foreclosed assets, net


99


50


98


101


(2)

Amortization of acquisition intangible


389


389



453


(14)

Provision for credit losses on unfunded commitments



151


(100)


146


(100)

Other expenses


1,164


1,142


2


1,040


12

Total noninterest expense


21,338


20,959


2


20,723


3

Income before income tax expense


12,219


12,284


(1)


13,032


(6)

Income tax expense


2,465


2,503


(2)


2,598


(5)

Net income


$              9,754


$              9,781



$           10,434


(7)












Earnings per share - basic


$                1.22


$                1.22


— %


$                1.29


(5) %

Earnings per share - diluted


$                1.22


$                1.21


1 %


$                1.28


(5) %












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)


9/30/2023


6/30/2023


%

Change


9/30/2022


%

Change

EARNINGS DATA











Total interest income


$        42,078


$        40,071


5 %


$        34,264


23 %

Total interest expense


12,569


9,765


29


2,287


450

Net interest income


29,509


30,306


(3)


31,977


(8)

Provision for loan losses


351


511


(31)


1,696


(79)

Total noninterest income


4,399


3,448


28


3,474


27

Total noninterest expense


21,338


20,959


2


20,723


3

Income tax expense


2,465


2,503


(2)


2,598


(5)

Net income


$          9,754


$          9,781



$        10,434


(7)












AVERAGE BALANCE SHEET DATA











Total assets


$  3,281,093


$  3,250,190


1 %


$  3,265,907


— %

Total interest-earning assets


3,087,452


3,050,335


1


3,060,273


1

Total loans


2,538,218


2,491,029


2


2,265,846


12

PPP loans


5,869


6,100


(4)


9,431


(38)

Total interest-bearing deposits


1,768,639


1,707,283


4


1,894,275


(7)

Total interest-bearing liabilities


2,101,424


2,039,815


3


1,978,734


6

Total deposits


2,568,173


2,538,800


1


2,818,318


(9)

Total shareholders' equity


350,436


348,414


1


335,053


5












PER SHARE DATA











Earnings per share - basic


$            1.22


$            1.22


— %


$            1.29


(5) %

Earnings per share - diluted


1.22


1.21


1


1.28


(5)

Book value at period end


42.30


42.22



38.27


11

Tangible book value at period end


31.67


31.59



27.66


14

Shares outstanding at period end


8,163,655


8,197,859



8,273,334


(1)

Weighted average shares outstanding











Basic


8,006,226


8,042,434


— %


8,089,246


(1) %

Diluted


8,038,606


8,079,205


(1)


8,138,307


(1)












SELECTED RATIOS (1)











Return on average assets


1.18 %


1.21 %


(2) %


1.27 %


(7) %

Return on average equity


11.04


11.26


(2)


12.35


(11)

Common equity ratio


10.41


10.52


(1)


10.00


4

Efficiency ratio (2)


62.93


62.09


1


58.45


8

Average equity to average assets


10.68


10.72



10.26


4

Tier 1 leverage capital ratio (3)


10.71


10.78


(1)


9.76


10

Total risk-based capital ratio (3)


13.73


14.07


(2)


13.65


1

Net interest margin (4)


3.75


3.94


(5)


4.11


(9)












SELECTED NON-GAAP RATIOS (1)











Tangible common equity ratio (5)


8.00 %


8.09 %


(1) %


7.43 %


8 %

Return on average tangible common equity (6)


15.15


15.50


(2)


17.34


(13)



(1)

With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods.

(2)

The efficiency ratio represents noninterest expense as a percentage of total revenues. Total revenues is the sum of net interest income and noninterest income.

(3)

Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change.

(4)

Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%.

(5)

Tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. See "Non-GAAP Reconciliation" for additional information.

(6)

Return on average tangible common equity is net income plus amortization of core deposit intangible, net of taxes, divided by average common shareholders' equity less average intangible assets. See "Non-GAAP Reconciliation" for additional information.

 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY CREDIT QUALITY INFORMATION

(Unaudited)




9/30/2023


6/30/2023


9/30/2022

(dollars in thousands)


Originated


Acquired


Total


Originated


Acquired


Total


Originated


Acquired


Total

CREDIT QUALITY (1)



















Nonaccrual loans(2)


$           8,001


$           3,905


$     11,906


$           6,806


$           5,364


$     12,170


$           4,281


$        12,799


$     17,080

Accruing loans 90 days or more

past due


43



43


26



26


3



3

Total nonperforming loans


8,044


3,905


11,949


6,832


5,364


12,196


4,284


12,799


17,083

Foreclosed assets and ORE


221


141


362


121


80


201


14


376


390

Total nonperforming assets


8,265


4,046


12,311


6,953


5,444


12,397


4,298


13,175


17,473

Performing troubled debt

restructurings








4,686


879


5,565

Total nonperforming assets and

troubled debt restructurings


$           8,265


$           4,046


$     12,311


$           6,953


$           5,444


$     12,397


$           8,984


$        14,054


$     23,038




















Nonperforming assets to total assets






0.37 %






0.38 %






0.55 %

Nonperforming loans to total assets






0.36






0.37






0.54

Nonperforming loans to total loans






0.47






0.49






0.74






















(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 $3.3 million at September 30, 2022. Acquired restructured loans placed on nonaccrual totaled $3.2 million at September 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)




9/30/2023


6/30/2023


9/30/2022



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


$           3,320


$                —


$       3,320


$           3,200


$                —


$       3,200


$           2,293


$                32


$       2,325

Home equity loans and lines


742



742


707



707


500



500

Commercial real estate


14,185


230


14,415


14,299


499


14,798


12,504


1,193


13,697

Construction and land


5,123



5,123


4,822



4,822


4,973



4,973

Multi-family residential


523



523


512



512


498



498

Commercial and industrial


6,161


105


6,266


5,734


121


5,855


4,523


188


4,711

Consumer


734



734


745



745


647



647

Total allowance for loan losses


$        30,788


$              335


$     31,123


$        30,019


$              620


$     30,639


$        25,938


$           1,413


$     27,351




















Unfunded lending commitments(3)


2,454



2,454


2,454



2,454


2,263



2,263

Total allowance for credit losses


$        33,242


$              335


$     33,577


$        32,473


$              620


$     33,093


$        28,201


$           1,413


$     29,614




















Allowance for loan losses to

nonperforming assets






252.81 %






247.15 %






156.53 %

Allowance for loan losses to

nonperforming loans






260.47 %






251.22 %






160.11 %

Allowance for loan losses to

total loans






1.21 %






1.22 %






1.19 %

Allowance for credit losses to

total loans






1.31 %






1.32 %






1.29 %




















Year-to-date loan charge-offs






$          148






$          137






$       1,260

Year-to-date loan recoveries






296






152






605

Year-to-date net loan recoveries

(charge-offs)






$          148






$             15






$        (655)

Annualized YTD net loan recoveries

(charge-offs) to average loans






0.01 %






— %






(0.04) %



(3)

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

 

SOURCE Home Bancorp, Inc.

For further information: John W. Bordelon, Chairman of the Board, President and CEO, (337) 237-1960