Home Bancorp, Inc.: 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.