Home Bancorp, Inc. Announces 2024 First Quarter Results And Declares Quarterly Dividend

LAFAYETTE, La., April 17, 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 first quarter of 2024. For the quarter, the Company reported net income of $9.2 million, or $1.14 per diluted common share ("diluted EPS"), down $186,000 from $9.4 million, or $1.17 diluted EPS, for the fourth quarter of 2023.

"Home Bank began 2024 with results similar to those in 2023. We had a solid 6% annualized loan growth rate and 8% annualized deposit growth rate for the quarter. While NIM decreased during the quarter, the pace of reduction has slowed as loans continue to reprice higher," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "While Houston continues to lead the majority of loan growth, most of our legacy franchise continues to show positive momentum. Deposits grew with the majority of the growth in customer CD's and Money Markets. Home Bank's talented, relationship-based bankers continue to attract new clients in all markets."

First Quarter 2024 Highlights

• Loans totaled $2.6 billion at March 31, 2024, up $40.1 million, or 1.6% (6% on an annualized basis), from December 31, 2023.
• Deposits totaled $2.7 billion at March 31, 2024, up $52.0 million, or 2% (8% on an annualized basis), from December 31, 2023.
• Net interest income totaled $28.9 million, down $381,000, or 1% from the prior quarter.
• The net interest margin ("NIM") was 3.64% in the first quarter of 2024 compared to 3.69% in the fourth quarter of 2023.
• Nonperforming assets totaled $22.0 million, or 0.65% of total assets compared to $10.4 million, or 0.31% of total assets, at December 31, 2023. This increase in nonperforming assets is primarily due to two loan relationships which were classified as nonperforming in the first quarter of 2024, for which management does not anticipate any loss.

Loans

Loans totaled $2.6 billion at March 31, 2024, up $40.1 million, or 2%, from December 31, 2023. The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from December 31, 2023 through March 31, 2024.

(dollars in thousands)		3/31/2024		12/31/2023		Increase (Decrease)
Real estate loans:
One- to four-family first mortgage		$ 436,659		$ 433,401		$ 3,258		1 %
Home equity loans and lines		70,377		68,977		1,400		2
Commercial real estate		1,221,573		1,192,691		28,882		2
Construction and land		334,324		340,724		(6,400)		(2)
Multi-family residential		118,748		107,263		11,485		11
Total real estate loans		2,181,681		2,143,056		38,625		2
Other loans:
Commercial and industrial		407,730		405,659		2,071		1
Consumer		32,279		32,923		(644)		(2)
Total other loans		440,009		438,582		1,427		-
Total loans		$ 2,621,690		$ 2,581,638		$ 40,052		2 %

The average loan yield was 6.18% for the first quarter of 2024, up 10 basis points, from the fourth quarter of 2023. Loan growth during the first quarter of 2024 was primarily in commercial real estate and multi-family residential loans. Loans grew in the first quarter of 2024 across most of our markets with approximately 77% of the growth attributable to the Houston market.

Credit Quality and Allowance for Credit Losses

Nonperforming assets ("NPAs") totaled $22.0 million, or 0.65% of total assets, at March 31, 2024, up $11.6 million, or 111%, from $10.4 million, or 0.31% of total assets, at December 31, 2023. The increase in NPAs during the first quarter of 2024 was primarily due to two loan relationships which were classified nonperforming, for which management does not anticipate any losses. Management expects one of the relationships over 90 days past due to be brought current or paid down significantly before the end of April 2024. During the first quarter of 2024, the Company recorded net loan charge-offs of $217,000, compared to net loan charge-offs of $250,000 during the fourth quarter of 2023.

The Company provisioned $141,000 to the allowance for loan losses in the first quarter of 2024. At March 31, 2024, the allowance for loan losses totaled $31.5 million, or 1.20% of total loans, compared to $31.5 million, or 1.22% of total loans, at December 31, 2023. Provisions to the allowance for loan losses are based upon, among other factors, our estimation of current expected losses in our loan portfolio, which we evaluate on a quarterly basis. Changes in expected losses consider various factors including the changing economic activity, potential mitigating effects of governmental stimulus, borrower specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.

The following tables present the Company's loan portfolio by credit quality classification as of March 31, 2024 and December 31, 2023.

	March 31, 2024
(dollars in thousands)		Pass		Special Mention		Substandard		Total
One- to four-family first mortgage		$ 429,488		$ 865		$ 6,306		$ 436,659
Home equity loans and lines		70,136		-		241		70,377
Commercial real estate		1,204,466		-		17,107		1,221,573
Construction and land		322,792		6,565		4,967		334,324
Multi-family residential		114,315		-		4,433		118,748
Commercial and industrial		404,786		1,148		1,796		407,730
Consumer		32,001		-		278		32,279
Total		$ 2,577,984		$ 8,578		$ 35,128		$ 2,621,690
	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

Investment Securities

The Company's investment securities portfolio totaled $422.9 million at March 31, 2024, a decrease of $12.1 million, or 3%, from December 31, 2023. At March 31, 2024, the Company had a net unrealized loss position on its investment securities of $46.6 million, compared to a net unrealized loss of $43.4 million at December 31, 2023. The Company's investment securities portfolio had an effective duration of 4.2 years at March 31, 2024 and December 31, 2023.

The following table summarizes the composition of the Company's investment securities portfolio at March 31, 2024.

(dollars in thousands)		Amortized Cost		Fair Value
Available for sale:
U.S. agency mortgage-backed		$ 307,558		$ 274,686
Collateralized mortgage obligations		81,218		77,277
Municipal bonds		53,784		46,096
U.S. government agency		18,862		17,618
Corporate bonds		6,982		6,136
Total available for sale		$ 468,404		$ 421,813
Held to maturity:
Municipal bonds		$ 1,065		$ 1,062
Total held to maturity		$ 1,065		$ 1,062

Approximately 64% of the investment securities portfolio was pledged as of March 31, 2024 to secure public deposits and borrowings with the Federal Reserve Bank Term Funding Program ("BTFP"). As of March 31, 2024 and December 31, 2023, the Company had $135.5 million and $127.2 million, respectively, of securities pledged to secure public deposits and $135.0 million and none, respectively, pledged to the BTFP borrowings.

Deposits

Total deposits were $2.7 billion at March 31, 2024, up $52.0 million, or 2%, from December 31, 2023. Non-maturity deposits decreased $1.2 million, or less than 1% during the first quarter of 2024 to $2.0 billion. The following table summarizes the changes in the Company's deposits from December 31, 2023 to March 31, 2024.

(dollars in thousands)		3/31/2024		12/31/2023		Increase (Decrease)
Demand deposits		$ 742,177		$ 744,424		$ (2,247)		- %
Savings		228,047		231,624		(3,577)		(2)
Money market		423,521		408,024		15,497		4
NOW		630,962		641,818		(10,856)		(2)
Certificates of deposit		697,871		644,734		53,137		8
Total deposits		$ 2,722,578		$ 2,670,624		$ 51,954		2 %

The average rate on interest-bearing deposits increased 28 basis points from 2.24% for the fourth quarter of 2023 to 2.52% for the first quarter of 2024. At March 31, 2024, certificates of deposit maturing within the next 12 months totaled $640.2 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.

		March 31, 2024		December 31, 2023
Individuals		54 %		53 %
Small businesses		36		38
Public funds		8		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 $781.9 million at March 31, 2024 and $748.6 million at December 31, 2023. Public funds in excess of the FDIC insurance limits are fully collateralized.

Net Interest Income

The net interest margin ("NIM") decreased 5 basis points from 3.69% for the fourth quarter of 2023 to 3.64% for the first quarter of 2024 primarily due to an increase in the average cost of interest-bearing deposits, which was partially offset by an increase in the average yield on interest-earning assets. The average cost of interest-bearing deposits increased by 28 basis points and the cost of deposits increased by $1.6 million, or 15%, in the first quarter of 2024 compared to the fourth 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 6.18% for the first quarter of 2024, up 10 basis points from the fourth quarter of 2023, primarily reflecting increased rates on variable rate loans coupled with new loan originations at higher market rates during the period.

Average other interest-earning assets were $57.1 million for the first quarter of 2024, down $420,000, or 1%, from the fourth quarter of 2023 primarily due to a reallocation of certain other interest-earning assets.

Loan accretion income from acquired loans totaled $525,000 for the first quarter of 2024, down $58,000, or 10%, from the fourth 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
		3/31/2024						12/31/2023
(dollars in thousands)		Average Balance		Interest		Average Yield/ Rate		Average Balance		Interest		Average Yield/ Rate
Interest-earning assets:
Loans receivable		$ 2,602,941		$ 40,567		6.18 %		$ 2,572,400		$ 39,820		6.08 %
Investment securities (TE)		472,578		2,788		2.38		481,322		2,837		2.37
Other interest-earning assets		57,103		771		5.43		57,523		742		5.12
Total interest-earning assets		$ 3,132,622		$ 44,126		5.60 %		$ 3,111,245		$ 43,399		5.49 %
Interest-bearing liabilities:
Deposits:
Savings, checking, and money market		$ 1,269,293		$ 4,800		1.52 %		$ 1,273,550		$ 4,561		1.42 %
Certificates of deposit		668,353		7,332		4.41		591,205		5,975		4.01
Total interest-bearing deposits		1,937,646		12,132		2.52		1,864,755		10,536		2.24
Other borrowings		125,979		1,486		4.74		5,539		53		3.80
Subordinated debt		54,268		845		6.22		54,214		844		6.23
FHLB advances		71,704		762		4.23		212,412		2,684		4.96
Total interest-bearing liabilities		$ 2,189,597		$ 15,225		2.79 %		$ 2,136,920		$ 14,117		2.62 %
Noninterest-bearing deposits		$ 743,262						$ 777,184
Net interest spread (TE)						2.81 %						2.87 %
Net interest margin (TE)						3.64 %						3.69 %

Noninterest Income

Noninterest income for the first quarter of 2024 totaled $3.5 million, up $71,000, or 2%, from the fourth quarter of 2023. The increase was related primarily to other income (up $70,000), gain on sale of loans (up $41,000) and service fees and charges (up $19,000), which were partially offset by bank card fees (down $71,000) for the first quarter of 2024 compared to the fourth quarter of 2023.

Noninterest Expense

Noninterest expense for the first quarter of 2024 totaled $20.9 million, up $264,000, or 1%, from the fourth quarter of 2023. The increase was primarily related to compensation and benefits expense (up $769,000) and franchise and shares tax (up $357,000), which were partially offset by other noninterest expense (down $405,000), marketing and advertising expense (down $293,000) and the absence of provision for credit losses on unfunded commitments (down $140,000) during the first quarter of 2024.

Capital and Liquidity

At March 31, 2024, shareholders' equity totaled $372.3 million, up $4.8 million, or 1%, compared to $367.4 million at December 31, 2023. The increase was primarily due to the the Company's earnings of $9.2 million during the first quarter of 2024, partially offset by increases in accumulated other comprehensive loss on available for sale investment securities, shareholder dividends and repurchases of shares of the Company's common stock. The market value of the Company's available for sale securities at March 31, 2024 decreased $3.2 million, or 7%, during the first quarter of 2024. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 11.19% and 14.39%, respectively, at March 31, 2024, compared to 10.98% and 14.23%, respectively, at December 31, 2023.

The following table summarizes the Company's primary and secondary sources of liquidity which were available at March 31, 2024.

(dollars in thousands)		March 31, 2024
Cash and cash equivalents		$ 90,475
Unencumbered investment securities, amortized cost		86,091
FHLB advance availability		1,107,888
Amounts available from unsecured lines of credit		55,000
Federal Reserve discount window availability		500
Total primary and secondary sources of available liquidity		$ 1,339,954

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 May 10, 2024, to shareholders of record as of April 29, 2024.

In October 2023, 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 March 31, 2024, there were 415,143 shares remaining that may be repurchased under the 2021 and 2023 Repurchase Plans. 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 21,303 shares of its common stock during the first quarter of 2024 at an average price per share of $38.78. The book value per share and tangible book value per share of the Company's common stock was $45.73 and $35.17, respectively, at March 31, 2024.

Conference Call

Executive management will host a conference call to discuss first quarter 2024 results on Thursday, April 18, 2024 at 10:30 a.m. CDT. Analysts, investors and interested parties may attend the conference call by dialing toll free 1.646.357.8785 (US Local/International) or 1.800.836.8184 (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)		3/31/2024		12/31/2023		3/31/2023
Reported net income		$ 9,199		$ 9,385		$ 11,320
Add: Core deposit intangible amortization, net tax		279		298		352
Non-GAAP tangible income		$ 9,478		$ 9,683		$ 11,672
Total assets		$ 3,357,604		$ 3,320,122		$ 3,266,970
Less: Intangible assets		86,019		86,372		87,527
Non-GAAP tangible assets		$ 3,271,585		$ 3,233,750		$ 3,179,443
Total shareholders' equity		$ 372,285		$ 367,444		$ 345,100
Less: Intangible assets		86,019		86,372		87,527
Non-GAAP tangible shareholders' equity		$ 286,266		$ 281,072		$ 257,573
Return on average equity		9.98 %		10.61 %		13.53 %
Add: Average intangible assets		3.42		3.92		5.29
Non-GAAP return on average tangible common equity		13.40 %		14.53 %		18.82 %
Common equity ratio		11.09 %		11.07 %		10.56 %
Less: Intangible assets		2.34		2.38		2.46
Non-GAAP tangible common equity ratio		8.75 %		8.69 %		8.10 %
Book value per share		$ 45.73		$ 45.04		$ 41.66
Less: Intangible assets		10.56		10.59		10.57
Non-GAAP tangible book value per share		$ 35.17		$ 34.45		$ 31.09

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, 2023 describes some of these factors, including risk elements in the loan portfolio, risks related to our deposit activities, the level of the allowance for credit losses, 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)		3/31/2024		12/31/2023		% Change		3/31/2023
Assets
Cash and cash equivalents		$ 90,475		$ 75,831		19 %		$ 107,171
Interest-bearing deposits in banks		-		99		(100)		349
Investment securities available for sale, at fair value		421,813		433,926		(3)		466,506
Investment securities held to maturity		1,065		1,065		-		1,070
Mortgage loans held for sale		646		361		79		473
Loans, net of unearned income		2,621,690		2,581,638		2		2,466,392
Allowance for loan losses		(31,461)		(31,537)		-		(30,118)
Total loans, net of allowance for loan losses		2,590,229		2,550,101		2		2,436,274
Office properties and equipment, net		42,341		41,980		1		42,844
Cash surrender value of bank-owned life insurance		47,587		47,321		1		46,528
Goodwill and core deposit intangibles		86,019		86,372		-		87,527
Accrued interest receivable and other assets		77,429		83,066		(7)		78,228
Total Assets		$ 3,357,604		$ 3,320,122		1		$ 3,266,970
Liabilities
Deposits		$ 2,722,578		$ 2,670,624		2 %		$ 2,557,744
Other Borrowings		140,539		5,539		2437		5,539
Subordinated debt, net of issuance cost		54,294		54,241		-		54,073
Federal Home Loan Bank advances		38,607		192,713		(80)		276,727
Accrued interest payable and other liabilities		29,301		29,561		(1)		27,787
Total Liabilities		2,985,319		2,952,678		1		2,921,870
Shareholders' Equity
Common stock		81		81		-		83
Additional paid-in capital		166,160		165,823		-		165,470
Common stock acquired by benefit plans		(1,607)		(1,697)		5		(1,969)
Retained earnings		241,152		234,619		3		215,290
Accumulated other comprehensive loss		(33,501)		(31,382)		(7)		(33,774)
Total Shareholders' Equity		372,285		367,444		1		345,100
Total Liabilities and Shareholders' Equity		$ 3,357,604		$ 3,320,122		1		$ 3,266,970

HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
		Quarter Ended
(dollars in thousands, except per share data)		3/31/2024		12/31/2023		% Change		3/31/2023		% Change
Interest Income
Loans, including fees		$ 40,567		$ 39,820		2 %		$ 34,498		18 %
Investment securities		2,788		2,837		(2)		3,142		(11)
Other investments and deposits		771		742		4		475		62
Total interest income		44,126		43,399		2		38,115		16
Interest Expense
Deposits		12,132		10,536		15 %		3,240		274 %
Other borrowings		1,486		53		2704		53		2704
Subordinated debt expense		845		844		-		851		(1)
Federal Home Loan Bank advances		762		2,684		(72)		2,376		(68)
Total interest expense		15,225		14,117		8		6,520		134
Net interest income		28,901		29,282		(1)		31,595		(9)
Provision for loan losses		141		665		(79)		814		(83)
Net interest income after provision for loan losses		28,760		28,617		-		30,781		(7)
Noninterest Income
Service fees and charges		1,254		1,235		2 %		1,250		- %
Bank card fees		1,575		1,646		(4)		1,787		(12)
Gain on sale of loans, net		87		46		89		57		53
Income from bank-owned life insurance		266		267		-		253		5
Loss on sale of securities, net		-		-		-		(249)		100
Gain (loss) on sale of assets, net		6		(7)		186		(17)		135
Other income		361		291		24		230		57
Total noninterest income		3,549		3,478		2		3,311		7
Noninterest Expense
Compensation and benefits		12,170		11,401		7 %		12,439		(2) %
Occupancy		2,454		2,467		(1)		2,350		4
Marketing and advertising		466		759		(39)		307		52
Data processing and communication		2,514		2,423		4		2,321		8
Professional fees		475		465		2		364		30
Forms, printing and supplies		205		195		5		187		10
Franchise and shares tax		488		131		273		541		(10)
Regulatory fees		469		589		(20)		539		(13)
Foreclosed assets, net		65		43		51		(739)		109
Amortization of acquisition intangible		353		377		(6)		446		(21)
Provision for credit losses on unfunded commitments		-		140		(100)		210		(100)
Other expenses		1,209		1,614		(25)		975		24
Total noninterest expense		20,868		20,604		1		19,940		5
Income before income tax expense		11,441		11,491		-		14,152		(19)
Income tax expense		2,242		2,106		6		2,832		(21)
Net income		$ 9,199		$ 9,385		(2)		$ 11,320		(19)
Earnings per share - basic		$ 1.15		$ 1.18		(3) %		$ 1.40		(18) %
Earnings per share - diluted		$ 1.14		$ 1.17		(3) %		$ 1.39		(18) %
Cash dividends declared per common share		$ 0.25		$ 0.25		- %		$ 0.25		- %

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
(Unaudited)
		Quarter Ended
(dollars in thousands, except per share data)		3/31/2024		12/31/2023		% Change		3/31/2023		% Change
EARNINGS DATA
Total interest income		$ 44,126		$ 43,399		2 %		$ 38,115		16 %
Total interest expense		15,225		14,117		8		6,520		134
Net interest income		28,901		29,282		(1)		31,595		(9)
Provision for loan losses		141		665		(79)		814		(83)
Total noninterest income		3,549		3,478		2		3,311		7
Total noninterest expense		20,868		20,604		1		19,940		5
Income tax expense		2,242		2,106		6		2,832		(21)
Net income		$ 9,199		$ 9,385		(2)		$ 11,320		(19)
AVERAGE BALANCE SHEET DATA
Total assets		$ 3,333,883		$ 3,299,069		1 %		$ 3,219,856		4 %
Total interest-earning assets		3,132,622		3,111,245		1		3,026,421		4
Total loans		2,602,941		2,572,400		1		2,437,770		7
PPP loans		5,393		5,643		(4)		6,386		(16)
Total interest-bearing deposits		1,937,646		1,864,755		4		1,698,868		14
Total interest-bearing liabilities		2,189,597		2,136,920		2		1,973,926		11
Total deposits		2,680,909		2,641,939		1		2,578,369		4
Total shareholders' equity		370,761		350,898		6		339,311		9
PER SHARE DATA
Earnings per share - basic		$ 1.15		$ 1.18		(3) %		$ 1.40		(18) %
Earnings per share - diluted		1.14		1.17		(3)		1.39		(18)
Book value at period end		45.73		45.04		2		41.66		10
Tangible book value at period end		35.17		34.45		2		31.09		13
Shares outstanding at period end		8,140,380		8,158,281		-		8,284,130		(2)
Weighted average shares outstanding
Basic		7,984,317		7,978,160		- %		8,087,524		(1) %
Diluted		8,039,505		8,008,362		-		8,136,583		(1)
SELECTED RATIOS (1)
Return on average assets		1.11 %		1.13 %		(2) %		1.43 %		(22) %
Return on average equity		9.98		10.61		(6)		13.53		(26)
Common equity ratio		11.09		11.07		-		10.56		5
Efficiency ratio (2)		64.31		62.89		2		57.12		13
Average equity to average assets		11.12		10.64		5		10.54		6
Tier 1 leverage capital ratio (3)		11.19		10.98		2		10.69		5
Total risk-based capital ratio (3)		14.39		14.23		1		14.00		3
Net interest margin (4)		3.64		3.69		(1)		4.18		(13)
SELECTED NON-GAAP RATIOS (1)
Tangible common equity ratio (5)		8.75 %		8.69 %		1 %		8.10 %		8 %
Return on average tangible common equity (6)		13.40		14.53		(8)		18.82		(29)

(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)
		3/31/2024						12/31/2023						3/31/2023
(dollars in thousands)		Originated		Acquired		Total		Originated		Acquired		Total		Originated		Acquired		Total
CREDIT QUALITY (1)
Nonaccrual loans		$ 11,232		$ 4,139		$ 15,371		$ 5,023		$ 3,791		$ 8,814		$ 5,546		$ 5,686		$ 11,232
Accruing loans 90 days or more past due		4,978		-		4,978		-		-		-		-		-		-
Total nonperforming loans		16,210		4,139		20,349		5,023		3,791		8,814		5,546		5,686		11,232
Foreclosed assets and ORE		1,539		62		1,601		1,495		80		1,575		-		80		80
Total nonperforming assets		17,749		4,201		21,950		6,518		3,871		10,389		5,546		5,766		11,312
Nonperforming assets to total assets						0.65 %						0.31 %						0.35 %
Nonperforming loans to total assets						0.61						0.27						0.34
Nonperforming loans to total loans						0.78						0.34						0.46

(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.

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION - CONTINUED
(Unaudited)
		3/31/2024						12/31/2023						3/31/2023
		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		$ 3,275		$ -		$ 3,275		$ 3,255		$ -		$ 3,255		$ 3,356		$ -		$ 3,356
Home equity loans and lines		701		-		701		688		-		688		753		-		753
Commercial real estate		14,863		200		15,063		14,604		201		14,805		13,344		450		13,794
Construction and land		5,287		-		5,287		5,292		123		5,415		4,921		-		4,921
Multi-family residential		584		-		584		474		-		474		608		-		608
Commercial and industrial		5,733		73		5,806		6,071		95		6,166		5,831		143		5,974
Consumer		745		-		745		734		-		734		712		-		712
Total allowance for loan losses		$ 31,188		$ 273		$ 31,461		$ 31,118		$ 419		$ 31,537		$ 29,525		$ 593		$ 30,118
Unfunded lending commitments(2)		2,594		-		2,594		2,594		-		2,594		2,303		-		2,303
Total allowance for credit losses		$ 33,782		$ 273		$ 34,055		$ 33,712		$ 419		$ 34,131		$ 31,828		$ 593		$ 32,421
Allowance for loan losses to nonperforming assets						143.33 %						303.56 %						266.25 %
Allowance for loan losses to nonperforming loans						154.61 %						357.81 %						268.14 %
Allowance for loan losses to total loans						1.20 %						1.22 %						1.22 %
Allowance for credit losses to total loans						1.30 %						1.32 %						1.31 %
Year-to-date loan charge-offs						$ 241						$ 471						$ 93
Year-to-date loan recoveries						24						368						98
Year-to-date net loan (charge-offs) recoveries						$ (217)						$ (103)						$ 5
Annualized YTD net loan (charge-offs) recoveries to average loans						(0.03) %						- %						- %

(2)	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.