HOME BANCORP ANNOUNCES 2023 FOURTH QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND

LAFAYETTE, La., Jan. 22, 2024 /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 2023. For the quarter, the Company reported net income of $9.4 million, or $1.17 per diluted common share ("diluted EPS"), down $369,000 from $9.8 million, or $1.22 diluted EPS, for the third quarter of 2023.

"Home Bank's strong performance in 2023 demonstrated our ability to successfully navigate economic cycles," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "During the fourth quarter, we grew both loans and deposits, improved credit and reported strong profitability.  Net interest margin, which decreased slightly to 3.69%, appears to be stabilizing as our strong customer relationships have made it possible to retain deposits while still maintaining discipline on interest expenses.  Tangible book value per share continued to increase and Home Bancorp ended the year with a Tangible Common Equity ("TCE") ratio of 8.7%.  We are confident that our high-quality deposit base, expanding market, credit-focused culture, and robust capital levels have positioned us to sustain momentum in 2024 and beyond."

Fourth Quarter 2023 Highlights

  • Loans totaled $2.6 billion at December 31, 2023, up $12.5 million, or less than 1%, from September 30, 2023.
  • Deposits totaled $2.7 billion at December 31, 2023, up  $73.1 million, or 3%, from September 30, 2023.
  • Net interest income totaled $29.3 million, down $227,000, or 1%, from the prior quarter.
  • The net interest margin ("NIM") decreased 6 basis points from 3.75% for the third quarter of 2023 to 3.69% in the fourth quarter of 2023.
  • Nonperforming assets totaled $10.4 million, or 0.31% of total assets at December 31, 2023, down $1.9 million, or 16%, from September 30, 2023 primarily due to improved performance of certain loans, as well as nonperforming loans, and paydowns.
  • The Company recorded a $665,000 provision to the allowance for loan losses, compared to a $351,000 provision in the prior quarter, primarily due to revisions to our loan prepayment estimates and loan growth.

Loans

Loans totaled $2.6 billion at December 31, 2023, up $12.5 million, or less than 1%, from September 30, 2023. The following table summarizes the changes in the Company's loan portfolio from September 30, 2023 to December 31, 2023.










December 31,


September 30,


Increase (Decrease)

(dollars in thousands)


2023


2023


Amount


Percent

Real estate loans:









One- to four-family first mortgage


$                433,401


$                432,092


$                    1,309


— %

Home equity loans and lines


68,977


69,350


(373)


(1)

Commercial real estate


1,192,691


1,178,111


14,580


1

Construction and land


340,724


342,711


(1,987)


(1)

Multi-family residential


107,263


106,411


852


1

Total real estate loans


2,143,056


2,128,675


14,381


1

Other loans:









Commercial and industrial


405,659


407,189


(1,530)


Consumer


32,923


33,230


(307)


(1)

Total other loans


438,582


440,419


(1,837)


Total loans


$            2,581,638


$             2,569,094


$                  12,544


— %

 

The average loan yield was 6.08% for the fourth quarter of 2023, up 13 basis points from the third quarter of 2023. Commercial real estate was the primary driver for the loan growth during the fourth quarter of 2023. Commercial real estate loan growth for the current quarter was primarily in our Northshore and New Orleans markets.

Credit Quality and Allowance for Loan Losses

Nonperforming assets ("NPAs"), totaled $10.4 million, or 0.31% of total assets at December 31, 2023, down $1.9 million, or 16%, from $12.3 million, or 0.37% of total assets, at September 30, 2023. The Company recorded net loan charge-offs of $250,000 during the fourth quarter of 2023, compared to net loan recoveries of $132,000 for the third quarter of 2023.

The Company made a $665,000 provision to the allowance for loan losses in the fourth quarter of 2023 primarily due to loan growth and downward revisions to our loan prepayment estimates. For the year ended December 31, 2023, provisions to the allowance for loan losses totaled $2.3 million. At December 31, 2023, the allowance for loan losses totaled $31.5 million, or 1.22% of total loans, compared to $31.1 million, or 1.21% of total loans, at September 30, 2023. Changes in expected losses reflect 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.

The following tables present the Company's loan portfolio by credit quality classification as of December 31, 2023 and September 30, 2023.



December 31, 2023

(dollars in thousands)


Pass


Special
Mention


Substandard


Total

One- to four-family first mortgage


$         429,964


$                 868


$              2,569


$         433,401

Home equity loans and lines


68,770



207


68,977

Commercial real estate


1,178,060



14,631


1,192,691

Construction and land


329,622


5,874


5,228


340,724

Multi-family residential


103,760



3,503


107,263

Commercial and industrial


402,732


1,186


1,741


405,659

Consumer


32,634



289


32,923

Total


$      2,545,542


$              7,928


$           28,168


$      2,581,638












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

 

Investment Securities

The Company's investment securities portfolio totaled $435.0 million at December 31, 2023, an increase of $6.9 million, or 2%, from September 30, 2023. At December 31, 2023, the Company had a net unrealized loss position on its investment securities of $43.4 million, compared to a net unrealized loss of $63.4 million at September 30, 2023. The Company's investment securities portfolio had an effective duration of 4.2 years and 4.5 years at December 31, 2023 and September 30, 2023, respectively.

The following table summarizes the composition of the Company's investment securities portfolio at December 31, 2023.

(dollars in thousands)


Amortized
Cost


Fair Value

Available for sale:





U.S. agency mortgage-backed


$       314,569


$       283,853

Collateralized mortgage obligations


82,764


79,262

Municipal bonds


53,891


46,674

U.S. government agency


19,151


18,049

Corporate bonds


6,982


6,088

Total available for sale


$       477,357


$       433,926

Held to maturity:





Municipal bonds


$           1,065


$           1,066

Total held to maturity


$           1,065


$           1,066

 

Approximately 29% of the investment securities portfolio was pledged to secure public funds as of December 31, 2023. As of December 31, 2023 and September 30, 2023, the Company had $127.2 million and $127.9 million, respectively, of securities pledged to secure public deposits.

Deposits

Total deposits were $2.7 billion at December 31, 2023, up $73.1 million, or 3%, from September 30, 2023. Non-maturity deposits decreased $15.1 million, or 1% during the fourth quarter of 2023 to $2.0 billion. The following table summarizes the changes in the Company's deposits from September 30, 2023 to December 31, 2023.










December 31,


September 30,


Increase/(Decrease)

(dollars in thousands)


2023


2023


Amount


Percent

Demand deposits


$                  744,424


$                  785,448


$                  (41,024)


(5) %

Savings


231,624


246,402


(14,778)


(6)

Money market


408,024


392,174


15,850


4

NOW


641,818


617,003


24,815


4

Certificates of deposit


644,734


556,457


88,277


16

Total deposits


$               2,670,624


$               2,597,484


$                    73,140


3 %

 

The average rate on interest-bearing deposits increased 40 basis points from 1.84% for the third quarter of 2023 to 2.24% for the fourth quarter of 2023. At December 31, 2023, certificates of deposit maturing within the next 12 months totaled $544.5 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.



December 31, 2023


September 30, 2023

Individuals


53 %


52 %

Small businesses


38


39

Public funds


7


7

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 $748.6 million at December 31, 2023 and $755.5 million at September 30, 2023. Public funds in excess of the FDIC insurance limits are fully collateralized.

Net Interest Income

The net interest margin ("NIM") decreased 6 basis points from 3.75% for the third quarter of 2023 to 3.69% for the fourth 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 loans. 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 6.08% for the fourth quarter of 2023, up 13 basis points from the third quarter of 2023, primarily reflecting increased market rates of interest coupled with loan growth during the period.

Average other interest-earning assets were $57.5 million for the fourth quarter of 2023, up $3.5 million, or 6%, from the third quarter of 2023 primarily due to an increase in cash and cash equivalents.

Loan accretion income from acquired loans totaled $584,000 for the fourth quarter of 2023, down $50,000, or 8%, compared to the third quarter of 2023.

The average rate paid on total interest-bearing deposits was 2.24% for the fourth quarter of 2023, up 40 basis points from the third quarter of 2023, 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, 2023


September 30, 2023

(dollars in thousands)


Average
Balance


Interest


Average
Yield/ Rate


Average
Balance


Interest


Average
Yield/ Rate

Interest-earning assets:













Loans receivable


$     2,572,400


$          39,820


6.08 %


$     2,538,218


$          38,490


5.95 %

Investment securities (TE)


481,322


2,837


2.37


495,219


2,939


2.39

Other interest-earning assets


57,523


742


5.12


54,015


649


4.77

Total interest-earning assets


$     3,111,245


$          43,399


5.49 %


$     3,087,452


$          42,078


5.36 %














Interest-bearing liabilities:













Deposits:













Savings, checking, and money market


$     1,273,550


$            4,561


1.42 %


$     1,256,885


$            3,791


1.20 %

Certificates of deposit


591,205


5,975


4.01


511,754


4,390


3.40

Total interest-bearing deposits


1,864,755


10,536


2.24


1,768,639


8,181


1.84

Other borrowings


5,539


53


3.80


5,539


53


3.80

Subordinated debt


54,214


844


6.23


54,159


845


6.24

FHLB advances


212,412


2,684


4.96


273,087


3,490


5.01

Total interest-bearing liabilities


$     2,136,920


$          14,117


2.62 %


$     2,101,424


$          12,569


2.37 %

Noninterest-bearing deposits


$        777,184






$        799,534





Net interest spread (TE)






2.87 %






2.99 %

Net interest margin (TE)






3.69 %






3.75 %

 

Noninterest Income

Noninterest income for the fourth quarter of 2023 totaled $3.5 million, down $921,000, or 21%, from the third quarter of 2023. The decrease was related primarily to gains on sale of loans (down $641,000 of which $628,000 was related to a reduction in SBA loan sales) and bank card fees (down $257,000 ) for the fourth quarter of 2023 compared to the third quarter of 2023.

Noninterest Expense

Noninterest expense for the fourth quarter of 2023 totaled $20.6 million, down $734,000, or 3%, compared to the third quarter of 2023. The decrease was primarily due to reductions in compensation and benefits (down $1.1 million) and franchise and shares tax (down $411,000), which were partially offset by increases in other expenses (up $450,000), provision for credit losses on unfunded commitments (up $140,000) and marketing and advertising (up $121,000).

Capital and Liquidity

At December 31, 2023, shareholders' equity totaled $367.4 million, up $22.1 million, or 6%, compared to $345.3 million at September 30, 2023. The increase was primarily due to the decrease in accumulated other comprehensive loss on available for sale investment securities and the Company's earnings of $9.4 million during the fourth quarter of 2023, which were partially offset by shareholder's dividends and repurchases of shares of the Company's common stock. The market value of the Company's available for sale securities at December 31, 2023 increased $20.0 million, or 32%, during the fourth quarter of 2023. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 10.98% and 14.23%, respectively, at December 31, 2023, compared to 10.71% and 13.73%, respectively, at September 30, 2023.

The following table summarizes the Company's primary and secondary sources of liquidity which were available at December 31, 2023.

(dollars in thousands)


December 31, 2023

Cash and cash equivalents


$                              75,831

Unencumbered investment securities, amortized cost


70,467

FHLB advance availability


1,020,494

Amounts available from unsecured lines of credit


55,000

Federal Reserve bank term funding program **


103,368

Federal Reserve discount window availability


500

Total primary and secondary sources of available liquidity


$                         1,325,660

** $59.4 million of securities were delivered to the Federal Reserve in January. The Company borrowed $135.0 million on the Federal Reserve program in January 2024 to pay down advances at FHLB, which will increase availability at FHLB.

 

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 16, 2024, to shareholders of record as of February 5, 2024.

The Company repurchased 16,534 shares of its common stock during the fourth quarter of 2023 at an average price per share of $32.68 under the Company's 2020 Repurchase Plan. At December 31, 2023, an additional 436,446 shares remain eligible for purchase under the 2021 and 2023 Repurchase Plans. The book value per share and tangible book value per share of the Company's common stock was $45.04 and $34.45, respectively, at December 31, 2023.

Conference Call

Executive management will host a conference call to discuss fourth quarter 2023 results on Tuesday, January 23, 2024 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 the  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 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, 2023


September 30, 2023


December 31, 2022








Reported net income


$              9,385


$              9,754


$            10,776

Add: Core deposit intangible amortization, net tax


298


307


350

Non-GAAP tangible income


$              9,683


$            10,061


$            11,126








Total assets


$       3,320,122


$       3,317,729


$       3,228,280

Less: Intangible assets


86,372


86,749


87,973

Non-GAAP tangible assets


$       3,233,750


$       3,230,980


$       3,140,307








Total shareholders' equity


$          367,444


$          345,332


$          329,954

Less: Intangible assets


86,372


86,749


87,973

Non-GAAP tangible shareholders' equity


$          281,072


$          258,583


$          241,981








Return on average equity


10.61 %


11.04 %


13.23 %

Add: Average intangible assets


3.92


4.11


5.52

Non-GAAP return on average tangible common equity


14.53 %


15.15 %


18.75 %








Common equity ratio


11.07 %


10.41 %


10.22 %

Less: Intangible assets


2.38


2.41


2.51

Non-GAAP tangible common equity ratio


8.69 %


8.00 %


7.71 %








Book value per share


$              45.04


$              42.30


$              39.82

Less: Intangible assets


10.59


10.63


10.62

Non-GAAP tangible book value per share


$              34.45


$              31.67


$              29.20








 

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)


December 31, 2023


September 30, 2023


%
Change


December 31, 2022

Assets









Cash and cash equivalents


$                  75,831


$                  84,520


(10) %


$                  87,401

Interest-bearing deposits in banks


99


99



349

Investment securities available for sale, at fair value


433,926


427,019


2


486,518

Investment securities held to maturity


1,065


1,065



1,075

Mortgage loans held for sale


361


467


(23)


98

Loans, net of unearned income


2,581,638


2,569,094



2,430,750

Allowance for loan losses


(31,537)


(31,123)


(1)


(29,299)

Total loans, net of allowance for loan losses


2,550,101


2,537,971



2,401,451

Office properties and equipment, net


41,980


42,402


(1)


43,560

Cash surrender value of bank-owned life insurance


47,321


47,054


1


46,276

Goodwill and core deposit intangibles


86,372


86,749



87,973

Accrued interest receivable and other assets


83,066


90,383


(8)


73,579

Total Assets


$             3,320,122


$             3,317,729



$             3,228,280










Liabilities









Deposits


$             2,670,624


$             2,597,484


3 %


$             2,633,181

Other Borrowings


5,539


5,539



5,539

Subordinated debt, net of issuance cost


54,241


54,187



54,013

Federal Home Loan Bank advances


192,713


283,826


(32)


176,213

Accrued interest payable and other liabilities


29,561


31,361


(6)


29,380

Total Liabilities


2,952,678


2,972,397


(1)


2,898,326










Shareholders' Equity









Common stock


81


81


— %


83

Additional paid-in capital


165,823


165,149



164,942

Common stock acquired by benefit plans


(1,697)


(1,787)


5


(2,060)

Retained earnings


234,619


227,649


3


206,296

Accumulated other comprehensive loss


(31,382)


(45,760)


31


(39,307)

Total Shareholders' Equity


367,444


345,332


6


329,954

Total Liabilities and Shareholders' Equity


$             3,320,122


$             3,317,729



$             3,228,280

 

HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME

(Unaudited)



For the Three Months Ended

(dollars in thousands, except per share data)


December 31, 2023


September 30, 2023


%
Change


December 31, 2022


%
Change

Interest Income











Loans, including fees


$                  39,820


$                  38,490


3 %


$                  32,826


21 %

Investment securities


2,837


2,939


(3)


3,214


(12)

Other investments and deposits


742


649


14


555


34

Total interest income


43,399


42,078


3


36,595


19

Interest Expense











Deposits


10,536


8,181


29 %


1,949


441 %

Other borrowings


53


53



53


Subordinated debt expense


844


845



851


(1)

Federal Home Loan Bank advances


2,684


3,490


(23)


456


489

Total interest expense


14,117


12,569


12


3,309


327

Net interest income


29,282


29,509


(1)


33,286


(12)

Provision for loan losses


665


351


89


1,987


(67)

Net interest income after provision for loan losses


28,617


29,158


(2)


31,299


(9)

Noninterest Income











Service fees and charges


1,235


1,277


(3) %


1,198


3 %

Bank card fees


1,646


1,903


(14)


1,566


5

Gain on sale of loans, net


46


687


(93)


22


109

Income from bank-owned life insurance


267


265


1


257


4

Loss on sale of assets, net


(7)




9


(178)

Other income


291


267


9


287


1

Total noninterest income


3,478


4,399


(21)


3,339


4

Noninterest Expense











Compensation and benefits


11,401


12,492


(9) %


12,880


(11) %

Occupancy


2,467


2,410


2


2,261


9

Marketing and advertising


759


638


19


550


38

Data processing and communication


2,423


2,496


(3)


2,295


6

Professional fees


465


402


16


392


19

Forms, printing and supplies


195


195



182


7

Franchise and shares tax


131


542


(76)


693


(81)

Regulatory fees


589


511


15


511


15

Foreclosed assets, net


43


99


(57)


30


43

Amortization of acquisition intangible


377


389


(3)


443


(15)

Provision for credit losses on unfunded lending commitments


140




(170)


182

Other expenses


1,614


1,164


39


1,114


45

Total noninterest expense


20,604


21,338


(3)


21,181


(3)

Income before income tax expense


11,491


12,219


(6)


13,457


(15)

Income tax expense


2,106


2,465


(15)


2,681


(21)

Net income


$                    9,385


$                    9,754


(4)


$                  10,776


(13)












Earnings per share - basic


$                       1.18


$                       1.22


(3) %


$                       1.33


(11) %

Earnings per share - diluted


$                       1.17


$                       1.22


(4)


$                       1.32


(11)












Cash dividends declared per common share


$                       0.25


$                       0.25


— %


$                       0.24


4 %

 

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION

(Unaudited)



For the Three Months Ended

(dollars in thousands, except per share data)


December 31, 2023


September 30, 2023


%
Change


December 31, 2022


%
Change

EARNINGS DATA











Total interest income


$              43,399


$              42,078


3 %


$              36,595


19 %

Total interest expense


14,117


12,569


12


3,309


327

  Net interest income


29,282


29,509


(1)


33,286


(12)

Provision for loan losses


665


351


89


1,987


(67)

Total noninterest income


3,478


4,399


(21)


3,339


4

Total noninterest expense


20,604


21,338


(3)


21,181


(3)

Income tax expense


2,106


2,465


(15)


2,681


(21)

  Net income


$                 9,385


$                 9,754


(4)


$              10,776


(13)












AVERAGE BALANCE SHEET DATA











Total assets


$         3,299,069


$         3,281,093


1 %


$         3,173,676


4 %

Total interest-earning assets


3,111,245


3,087,452


1


2,986,266


4

Total loans


2,572,400


2,538,218


1


2,374,065


8

PPP loans


5,643


5,869


(4)


6,883


(18)

Total interest-bearing deposits


1,864,755


1,768,639


5


1,769,966


5

Total interest-bearing liabilities


2,136,920


2,101,424


2


1,884,109


13

Total deposits


2,641,939


2,568,173


3


2,707,823


(2)

Total shareholders' equity


350,898


350,436



323,102


9












PER SHARE DATA











Earnings per share - basic


$                   1.18


$                   1.22


(3) %


$                   1.33


(11) %

Earnings per share - diluted


1.17


1.22


(4)


1.32


(11)

Book value at period end


45.04


42.30


6


39.82


13

Tangible book value at period end


34.45


31.67


9


29.20


18

Shares outstanding at period end


8,158,281


8,163,655



8,286,084


(2)

Weighted average shares outstanding











Basic


7,978,160


8,006,226


— %


8,070,734


(1) %

Diluted


8,008,362


8,038,606



8,119,481


(1)












SELECTED RATIOS (1)











Return on average assets


1.13 %


1.18 %


(4) %


1.35 %


(16) %

Return on average equity


10.61


11.04


(4)


13.23


(20)

Common equity ratio


11.07


10.41


6


10.22


8

Efficiency ratio (2)


62.89


62.93



57.83


9

Average equity to average assets


10.64


10.68



10.18


5

Tier 1 leverage capital ratio (3)


10.98


10.71


3


10.43


5

Total risk-based capital ratio (3)


14.23


13.73


4


13.63


4

Net interest margin (4)


3.69


3.75


(2)


4.38


(16)












SELECTED NON-GAAP RATIOS (1)











Tangible common equity ratio (5)


8.69 %


8.00 %


9 %


7.71 %


13 %

Return on average tangible common equity (6)


14.53


15.15


(4)


18.75


(23)












(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, 2023


September 30, 2023


December 31, 2022

(dollars in thousands)


Acquired


Originated


Total


Acquired


Originated


Total


Acquired


Originated


Total

CREDIT QUALITY (1)



















Nonaccrual loans (2)


$          3,791


$          5,023


$      8,814


$          3,905


$          8,001


$    11,906


$          6,177


$          4,336


$    10,513

Accruing loans past due 90 days and over






43


43



2


2

Total nonperforming loans


3,791


5,023


8,814


3,905


8,044


11,949


6,177


4,338


10,515

Foreclosed assets and ORE


80


1,495


1,575


141


221


362


310


151


461

Total nonperforming assets


3,871


6,518


10,389


4,046


8,265


12,311


6,487


4,489


10,976

Performing troubled debt restructurings








1,605


4,600


6,205

Total nonperforming assets and troubled debt restructurings


$          3,871


$          6,518


$    10,389


$          4,046


$          8,265


$    12,311


$          8,092


$          9,089


$    17,181




















Nonperforming assets to total assets






0.31 %






0.37 %






0.34 %

Nonperforming loans to total assets






0.27






0.36






0.33

Nonperforming loans to total loans






0.34






0.47






0.43



(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 at December 31, 2022. Acquired restructured loans placed on nonaccrual totaled $3.7 million at December 31, 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)



December 31, 2023


September 30, 2023


December 31, 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


$           3,255


$                —


$       3,255


$           3,320


$                —


$       3,320


$           2,883


$                —


$       2,883

Home equity loans and lines


688



688


742



742


624



624

Commercial real estate


14,604


201


14,805


14,185


230


14,415


13,264


550


13,814

Construction and land


5,292


123


5,415


5,123



5,123


4,680



4,680

Multi-family residential


474



474


523



523


572



572

Commercial and industrial


6,071


95


6,166


6,161


105


6,266


5,853


171


6,024

Consumer


734



734


734



734


702



702

Total allowance for loan losses


$        31,118


$              419


$     31,537


$        30,788


$              335


$     31,123


$        28,578


$              721


$     29,299




















Unfunded lending commitments(3)


2,594



2,594


2,454



2,454


2,093



2,263

Total allowance for credit losses


$        33,712


$              419


$     34,131


$        33,242


$              335


$     33,577


$        30,671


$              721


$       2,093




















Allowance for loan losses to nonperforming assets






303.56 %






252.81 %






266.94 %

Allowance for loan losses to nonperforming loans






357.81 %






260.47 %






278.64 %

Allowance for loan losses to total loans






1.22 %






1.21 %






1.21 %

Allowance for credit losses to total loans






1.32 %






1.31 %






1.29 %




















Year-to-date loan charge-offs






$          471






$          148






$       1,398

Year-to-date loan recoveries






368






296






704

Year-to-date net loan (charge-offs) recoveries






$        (103)






$          148






$        (694)

Annualized YTD net loan (charge-offs) recoveries to average loans






— %






0.01 %






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.

 

SOURCE Home Bancorp, Inc.

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