Home Bancorp, Inc. Announces 2024 Third Quarter Results And Increases Quarterly Dividend By 4%

LAFAYETTE, La., Oct. 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 third quarter of 2024. For the quarter, the Company reported net income of $9.4 million, or $1.18 per diluted common share ("diluted EPS"), up $1.3 million from $8.1 million, or $1.02 diluted EPS, for the second quarter of 2024.

"We are pleased with the financial results for the current quarter," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "While loan growth has slowed from second quarter, deposit growth continues to improve reducing our loan to deposit ratio down to 96%. Our net interest margin remains strong at 3.71% and continued to move upward through the quarter."

Third Quarter 2024 Highlights

• Loans totaled $2.7 billion at September 30, 2024, up $6.9 million, or less than 1%, (an increase of 1% on an annualized basis) from June 30, 2024.
• Deposits totaled $2.8 billion at September 30, 2024, up $54.6 million, or 2% (8% on an annualized basis), from June 30, 2024.
• Net interest income in the third quarter of 2024 totaled $30.4 million, up $989,000, or 3% from the prior quarter.
• The net interest margin ("NIM") was 3.71% in the third quarter of 2024 compared to 3.66% in the second quarter of 2024.
• Nonperforming assets totaled $18.4 million, or 0.53% of total assets, at September 30, 2024 compared to $17.0 million, or 0.50% of total assets, at June 30, 2024.
• The Company recorded a $140,000 provision to the allowance for loan losses in the third quarter of 2024, compared to a $1.3 million provision in the second quarter of 2024.
• Net loan charge-offs were $74,000 for the third quarter of 2024, compared to net loan charge-offs of $510,000 during the second quarter of 2024. Annualized year-to-date net loan charge offs to average loans was 0.04%.

Loans

Loans totaled $2.7 billion at September 30, 2024, up $6.9 million, or less than 1%, from June 30, 2024. The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from June 30, 2024 through September 30, 2024.

(dollars in thousands)		9/30/2024		6/30/2024		Increase (Decrease)
Real estate loans:
One- to four-family first mortgage		$ 502,784		$ 446,255		$ 56,529		13 %
Home equity loans and lines		80,935		70,617		10,318		15
Commercial real estate		1,143,152		1,228,757		(85,605)		(7)
Construction and land		329,787		328,938		849		-
Multi-family residential		169,443		126,922		42,521		34
Total real estate loans		2,226,101		2,201,489		24,612		1
Other loans:
Commercial and industrial		412,753		427,339		(14,586)		(3)
Consumer		29,432		32,518		(3,086)		(9)
Total other loans		442,185		459,857		(17,672)		(4)
Total loans		$ 2,668,286		$ 2,661,346		$ 6,940		- %

The average loan yield was 6.43% for the third quarter of 2024, up 15 basis points from the second quarter of 2024. Loans grew in the third quarter of 2024 across most of our markets, with New Orleans and Houston leading the net growth.

Credit Quality and Allowance for Credit Losses

Nonperforming assets ("NPAs") totaled $18.4 million, or 0.53% of total assets, at September 30, 2024, up $1.3 million, or 8%, from $17.0 million, or 0.50% of total assets, at June 30, 2024. The increase in NPAs during the third quarter of 2024 was primarily due to two loan relationships which were put on nonaccrual during the third quarter of 2024. During the third quarter of 2024, the Company recorded net loan charge-offs of $74,000, compared to net loan charge-offs of $510,000 during the second quarter of 2024.

The Company provisioned $140,000 to the allowance for loan losses in the third quarter of 2024. At September 30, 2024, the allowance for loan losses totaled $32.3 million, or 1.21% of total loans, compared to $32.2 million, or 1.21% of total loans, at June 30, 2024. Provisions to the allowance for loan losses are based upon, among other factors, our estimation of current expected losses in our loan portfolio, which we evaluate on a quarterly basis. Changes in expected losses consider various factors including the changing economic activity, potential mitigating effects of governmental stimulus, borrower specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.

The following tables present the Company's loan portfolio by credit quality classification as of September 30, 2024 and June 30, 2024.

	September 30, 2024
(dollars in thousands)		Pass		Special Mention		Substandard		Total
One- to four-family first mortgage		$ 494,180		$ 859		$ 7,745		$ 502,784
Home equity loans and lines		80,729		-		206		80,935
Commercial real estate		1,125,331		-		17,821		1,143,152
Construction and land		323,751		308		5,728		329,787
Multi-family residential		168,513		-		930		169,443
Commercial and industrial		409,388		1,248		2,117		412,753
Consumer		29,302		-		130		29,432
Total		$ 2,631,194		$ 2,415		$ 34,677		$ 2,668,286
	June 30, 2024
(dollars in thousands)		Pass		Special Mention		Substandard		Total
One- to four-family first mortgage		$ 437,753		$ 1,417		$ 7,085		$ 446,255
Home equity loans and lines		70,394		-		223		70,617
Commercial real estate		1,207,421		3,469		17,867		1,228,757
Construction and land		324,729		310		3,899		328,938
Multi-family residential		125,689		65		1,168		126,922
Commercial and industrial		423,673		1,493		2,173		427,339
Consumer		32,273		-		245		32,518
Total		$ 2,621,932		$ 6,754		$ 32,660		$ 2,661,346

Investment Securities

The Company's investment securities portfolio totaled $421.8 million at September 30, 2024, an increase of $8.3 million, or 2%, from June 30, 2024. At September 30, 2024, the Company had a net unrealized loss position on its investment securities of $32.2 million, compared to a net unrealized loss of $46.6 million at June 30, 2024. The Company's investment securities portfolio had an effective duration of 3.7 years and 4.0 years at September 30, 2024 and June 30, 2024, respectively. During the third quarter of 2024, the Company made securities purchases of $4.9 million. No other purchases or sales of securities were made during the year.

The following table summarizes the composition of the Company's investment securities portfolio at September 30, 2024.

(dollars in thousands)		Amortized Cost		Fair Value
Available for sale:
U.S. agency mortgage-backed		$ 296,894		$ 273,581
Collateralized mortgage obligations		77,351		75,438
Municipal bonds		53,568		47,770
U.S. government agency		18,139		17,490
Corporate bonds		6,984		6,444
Total available for sale		$ 452,936		$ 420,723
Held to maturity:
Municipal bonds		$ 1,065		$ 1,066
Total held to maturity		$ 1,065		$ 1,066

Approximately 66% of the investment securities portfolio was pledged as of September 30, 2024 to secure public deposits and borrowings with the Federal Reserve Bank Term Funding Program ("BTFP"). The Company had $142.0 million of securities pledged to secure public deposits and $135.0 million pledged to the BTFP borrowings at September 30, 2024 and June 30, 2024.

Deposits

Total deposits were $2.8 billion at September 30, 2024, up $54.6 million, or 2%, from June 30, 2024. Non-maturity deposits increased $45.2 million, or 2%, during the third quarter of 2024 to $2.1 billion. The following table summarizes the changes in the Company's deposits from June 30, 2024 to September 30, 2024.

(dollars in thousands)		9/30/2024		6/30/2024		Increase (Decrease)
Demand deposits		$ 740,854		$ 746,504		$ (5,650)		(1) %
Savings		215,815		218,307		(2,492)		(1)
Money market		452,456		427,406		25,050		6
NOW		644,061		615,809		28,252		5
Certificates of deposit		724,301		714,889		9,412		1
Total deposits		$ 2,777,487		$ 2,722,915		$ 54,572		2 %

The average rate on interest-bearing deposits increased 9 basis points from 2.69% for the second quarter of 2024 to 2.78% for the third quarter of 2024. At September 30, 2024, certificates of deposit maturing within the next 12 months totaled $680.8 million.

We obtain most of our deposits from individuals, small businesses and public funds in our market areas. The following table presents our deposits per customer type for the periods indicated.

		September 30, 2024		June 30, 2024
Individuals		52 %		53 %
Small businesses		38		37
Public funds		7		8
Broker		3		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 $818.7 million at September 30, 2024 and $780.1 million at June 30, 2024. Public funds in excess of the FDIC insurance limits are fully collateralized.

Net Interest Income

The net interest margin ("NIM") increased 5 basis points from 3.66% for the second quarter of 2024 to 3.71% for the third quarter of 2024 primarily due to the increase in average interest-earning assets outpacing the increase in average interest-bearing liabilities.

The average loan yield was 6.43% for the third quarter of 2024, up 15 basis points from the second quarter of 2024, primarily due to new loan originations at higher market rates during the third quarter.

The average cost of interest-bearing deposits increased by 9 basis points in the third quarter of 2024 compared to the second quarter of 2024. 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.

Average other interest-earning assets were $79.7 million for the third quarter of 2024, up $28.3 million, or 55%, from the second quarter of 2024 primarily due to a reallocation of certain other interest-earning assets.

Loan accretion income from acquired loans totaled $452,000 for the third quarter of 2024, down $38,000, or 8%, from the second quarter of 2024.

The following table summarizes the Company's average volume and rate of its interest-earning assets and interest-bearing liabilities for the periods indicated. Taxable equivalent ("TE") yields on investment securities have been calculated using a marginal tax rate of 21%.

		Quarter Ended
		9/30/2024						6/30/2024
(dollars in thousands)		Average Balance		Interest		Average Yield/ Rate		Average Balance		Interest		Average Yield/ Rate
Interest-earning assets:
Loans receivable		$ 2,668,672		$ 43,711		6.43 %		$ 2,652,331		$ 41,999		6.28 %
Investment securities (TE)		454,024		2,677		2.38		463,500		2,740		2.38
Other interest-earning assets		79,668		991		4.95		51,355		719		5.64
Total interest-earning assets		$ 3,202,364		$ 47,379		5.82 %		$ 3,167,186		$ 45,458		5.70 %
Interest-bearing liabilities:
Deposits:
Savings, checking, and money market		$ 1,266,465		$ 5,571		1.75 %		$ 1,260,491		$ 5,108		1.63 %
Certificates of deposit		722,717		8,337		4.59		704,690		8,026		4.58
Total interest-bearing deposits		1,989,182		13,908		2.78		1,965,181		13,134		2.69
Other borrowings		140,539		1,673		4.74		140,610		1,656		4.74
Subordinated debt		54,374		844		6.21		54,322		844		6.22
FHLB advances		56,743		572		3.99		46,499		431		3.69
Total interest-bearing liabilities		$ 2,240,838		$ 16,997		3.02 %		$ 2,206,612		$ 16,065		2.93 %
Noninterest-bearing deposits		$ 741,387						$ 751,776
Net interest spread (TE)						2.80 %						2.77 %
Net interest margin (TE)						3.71 %						3.66 %

Noninterest Income

Noninterest income for the third quarter of 2024 totaled $3.7 million, down $63,000, or 2%, from the second quarter of 2024. The decrease was related primarily to bank card fees (down $138,000), which was partially offset by gain on sale of loans (up $69,000) for the third quarter of 2024 compared to the second quarter of 2024.

Noninterest Expense

Noninterest expense for the third quarter of 2024 totaled $22.3 million, up $450,000, or 2%, from the second quarter of 2024. The increase was primarily related to compensation and benefits expense (up $270,000), the absence of a reversal to the allowance for credit losses on unfunded commitments ($134,000), and occupancy expense (up $129,000), which were partially offset by professional fees (down $131,000) during the third quarter of 2024.

Capital and Liquidity

At September 30, 2024, shareholders' equity totaled $393.5 million, up $17.6 million, or 5%, compared to $375.8 million at June 30, 2024. The increase was primarily due to the the Company's earnings of $9.4 million and a decrease in the accumulated other comprehensive loss on available for sale investments securities during the third quarter of 2024, which was partially offset by shareholder dividends and repurchases of shares of the Company's common stock. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 11.32% and 15.03%, respectively, at September 30, 2024, compared to 11.22% and 14.39%, respectively, at June 30, 2024.

The following table summarizes the Company's primary and secondary sources of liquidity which were available at September 30, 2024.

(dollars in thousands)		September 30, 2024
Cash and cash equivalents		$ 135,877
Unencumbered investment securities, amortized cost		59,838
FHLB advance availability		1,147,306
Amounts available from unsecured lines of credit		55,000
Federal Reserve discount window availability		500
Total primary and secondary sources of available liquidity		$ 1,398,521

Dividend and Share Repurchases

The Company announces that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.26 per share payable on November 8, 2024, to shareholders of record as of October 28, 2024.

The Company repurchased 24,473 shares of its common stock during the third quarter of 2024 at an average price per share of $38.50. An additional 313,812 shares remain eligible for purchase under the 2023 Repurchase Plan. The book value per share and tangible book value per share of the Company's common stock was $48.75 and $38.17, respectively, at September 30, 2024.

Conference Call

Executive management will host a conference call to discuss third quarter 2024 results on Friday, October 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 on 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 on non-GAAP information included herein to GAAP is presented below.

		Quarter Ended
(dollars in thousands, except per share data)		9/30/2024		6/30/2024		9/30/2023
Reported net income		$ 9,437		$ 8,118		$ 9,754
Add: Core deposit intangible amortization, net tax		259		261		307
Non-GAAP tangible income		$ 9,696		$ 8,379		$ 10,061
Total assets		$ 3,441,990		$ 3,410,881		$ 3,317,729
Less: Intangible assets		85,361		85,690		86,749
Non-GAAP tangible assets		$ 3,356,629		$ 3,325,191		$ 3,230,980
Total shareholders' equity		$ 393,453		$ 375,830		$ 345,332
Less: Intangible assets		85,361		85,690		86,749
Non-GAAP tangible shareholders' equity		$ 308,092		$ 290,140		$ 258,583
Return on average equity		9.76 %		8.75 %		11.04 %
Add: Average intangible assets		3.14		2.98		4.11
Non-GAAP return on average tangible common equity		12.90 %		11.73 %		15.15 %
Common equity ratio		11.43 %		11.02 %		10.41 %
Less: Intangible assets		2.25		2.29		2.41
Non-GAAP tangible common equity ratio		9.18 %		8.73 %		8.00 %
Book value per share		$ 48.75		$ 46.51		$ 42.30
Less: Intangible assets		10.58		10.61		10.63
Non-GAAP tangible book value per share		$ 38.17		$ 35.90		$ 31.67

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)		9/30/2024		6/30/2024		% Change		9/30/2023
Assets
Cash and cash equivalents		$ 135,877		$ 113,462		20 %		$ 84,520
Interest-bearing deposits in banks		-		-		-		99
Investment securities available for sale, at fair value		420,723		412,472		2		427,019
Investment securities held to maturity		1,065		1,065		-		1,065
Mortgage loans held for sale		242		-		-		467
Loans, net of unearned income		2,668,286		2,661,346		-		2,569,094
Allowance for loan losses		(32,278)		(32,212)		-		(31,123)
Total loans, net of allowance for loan losses		2,636,008		2,629,134		-		2,537,971
Office properties and equipment, net		42,659		43,089		(1)		42,402
Cash surrender value of bank-owned life insurance		48,139		47,858		1		47,054
Goodwill and core deposit intangibles		85,361		85,690		-		86,749
Accrued interest receivable and other assets		71,916		78,111		(8)		90,383
Total Assets		$ 3,441,990		$ 3,410,881		1 %		$ 3,317,729
Liabilities
Deposits		$ 2,777,487		$ 2,722,915		2 %		$ 2,597,484
Other Borrowings		140,539		140,539		-		5,539
Subordinated debt, net of issuance cost		54,402		54,348		-		54,187
Federal Home Loan Bank advances		38,410		83,506		(54)		283,826
Accrued interest payable and other liabilities		37,699		33,743		12		31,361
Total Liabilities		3,048,537		3,035,051		-		2,972,397
Shareholders' Equity
Common stock		81		81		-		81
Additional paid-in capital		166,743		165,918		-		165,149
Common stock acquired by benefit plans		(1,428)		(1,518)		6		(1,787)
Retained earnings		251,692		245,046		3		227,649
Accumulated other comprehensive loss		(23,635)		(33,697)		30		(45,760)
Total Shareholders' Equity		393,453		375,830		5		345,332
Total Liabilities and Shareholders' Equity		$ 3,441,990		$ 3,410,881		1 %		$ 3,317,729

HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
		Quarter Ended
(dollars in thousands, except per share data)		9/30/2024		6/30/2024		% Change		9/30/2023		% Change
Interest Income
Loans, including fees		$ 43,711		$ 41,999		4 %		$ 38,490		14 %
Investment securities		2,677		2,740		(2)		2,939		(9)
Other investments and deposits		991		719		38		649		53
Total interest income		47,379		45,458		4		42,078		13
Interest Expense
Deposits		13,908		13,134		6 %		8,181		70 %
Other borrowings		1,673		1,656		1		53		3057
Subordinated debt expense		844		844		-		845		-
Federal Home Loan Bank advances		572		431		33		3,490		(84)
Total interest expense		16,997		16,065		6		12,569		35
Net interest income		30,382		29,393		3		29,509		3
Provision for loan losses		140		1,261		(89)		351		(60)
Net interest income after provision for loan losses		30,242		28,132		8		29,158		4
Noninterest Income
Service fees and charges		1,291		1,239		4 %		1,277		1 %
Bank card fees		1,613		1,751		(8)		1,903		(15)
Gain on sale of loans, net		195		126		55		687		(72)
Income from bank-owned life insurance		281		271		4		265		6
Loss on sale of assets, net		(10)		(2)		(400)		-		-
Other income		322		370		(13)		267		21
Total noninterest income		3,692		3,755		(2)		4,399		(16)
Noninterest Expense
Compensation and benefits		13,058		12,788		2 %		12,492		5 %
Occupancy		2,732		2,603		5		2,410		13
Marketing and advertising		382		485		(21)		638		(40)
Data processing and communication		2,646		2,555		4		2,496		6
Professional fees		450		581		(23)		402		12
Forms, printing and supplies		188		187		1		195		(4)
Franchise and shares tax		488		487		-		542		(10)
Regulatory fees		493		509		(3)		511		(4)
Foreclosed assets, net		62		89		(30)		99		(37)
Amortization of acquisition intangible		328		329		-		389		(16)
(Reversal) provision for credit losses on unfunded commitments		-		(134)		100		-		-
Other expenses		1,431		1,329		8		1,164		23
Total noninterest expense		22,258		21,808		2		21,338		4
Income before income tax expense		11,676		10,079		16		12,219		(4)
Income tax expense		2,239		1,961		14		2,465		(9)
Net income		$ 9,437		$ 8,118		16 %		$ 9,754		(3) %
Earnings per share - basic		$ 1.19		$ 1.02		17 %		$ 1.22		(2) %
Earnings per share - diluted		$ 1.18		$ 1.02		16 %		$ 1.22		(3) %
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)		9/30/2024		6/30/2024		% Change		9/30/2023		% Change
EARNINGS DATA
Total interest income		$ 47,379		$ 45,458		4 %		$ 42,078		13 %
Total interest expense		16,997		16,065		6		12,569		35
Net interest income		30,382		29,393		3		29,509		3
Provision for loan losses		140		1,261		(89)		351		(60)
Total noninterest income		3,692		3,755		(2)		4,399		(16)
Total noninterest expense		22,258		21,808		2		21,338		4
Income tax expense		2,239		1,961		14		2,465		(9)
Net income		$ 9,437		$ 8,118		16		$ 9,754		(3)
AVERAGE BALANCE SHEET DATA
Total assets		$ 3,405,083		$ 3,367,207		1 %		$ 3,281,093		4 %
Total interest-earning assets		3,202,364		3,167,186		1		3,087,452		4
Total loans		2,668,672		2,652,331		1		2,538,218		5
PPP loans		4,470		5,156		(13)		5,869		(24)
Total interest-bearing deposits		1,989,182		1,965,181		1		1,768,639		12
Total interest-bearing liabilities		2,240,838		2,206,612		2		2,101,424		7
Total deposits		2,730,568		2,716,957		1		2,568,173		6
Total shareholders' equity		384,518		373,139		3		350,436		10
PER SHARE DATA
Earnings per share - basic		$ 1.19		$ 1.02		17 %		$ 1.22		(2) %
Earnings per share - diluted		1.18		1.02		16		1.22		(3)
Book value at period end		48.75		46.51		5		42.30		15
Tangible book value at period end		38.17		35.90		6		31.67		21
Shares outstanding at period end		8,070,539		8,081,344		-		8,163,655		(1)
Weighted average shares outstanding
Basic		7,921,582		7,972,445		(1) %		8,006,226		(1) %
Diluted		7,966,957		8,018,908		(1)		8,038,606		(1)
SELECTED RATIOS (1)
Return on average assets		1.10 %		0.97 %		13 %		1.18 %		(7) %
Return on average equity		9.76		8.75		12		11.04		(12)
Common equity ratio		11.43		11.02		4		10.41		10
Efficiency ratio (2)		65.32		65.79		(1)		62.93		4
Average equity to average assets		11.29		11.08		2		10.68		6
Tier 1 leverage capital ratio (3)		11.32		11.22		1		10.71		6
Total risk-based capital ratio (3)		15.03		14.39		4		13.73		9
Net interest margin (4)		3.71		3.66		1		3.75		(1)
SELECTED NON-GAAP RATIOS (1)
Tangible common equity ratio (5)		9.18 %		8.73 %		5 %		8.00 %		15 %
Return on average tangible common equity (6)		12.90		11.73		10		15.15		(15)

(1)	With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods.
(2)	The efficiency ratio represents noninterest expense as a percentage of total revenues. Total revenues is the sum of net interest income and noninterest income.
(3)	Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change.
(4)	Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%.
(5)	Tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. See "Non-GAAP Reconciliation" for additional information.
(6)	Return on average tangible common equity is net income plus amortization of core deposit intangible, net of taxes, divided by average common shareholders' equity less average intangible assets. See "Non-GAAP Reconciliation" for additional information.

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION
(Unaudited)
		9/30/2024						6/30/2024						9/30/2023
(dollars in thousands)		Originated		Acquired		Total		Originated		Acquired		Total		Originated		Acquired		Total
CREDIT QUALITY (1)
Nonaccrual loans		$ 13,741		$ 4,314		$ 18,055		$ 12,594		$ 4,223		$ 16,817		$ 8,001		$ 3,905		$ 11,906
Accruing loans 90 days or more past due		34		-		34		1		-		1		43		-		43
Total nonperforming loans		13,775		4,314		18,089		12,595		4,223		16,818		8,044		3,905		11,949
Foreclosed assets and ORE		-		267		267		16		215		231		221		141		362
Total nonperforming assets		$ 13,775		$ 4,581		$ 18,356		$ 12,611		$ 4,438		$ 17,049		$ 8,265		$ 4,046		$ 12,311
Nonperforming assets to total assets						0.53 %						0.50 %						0.37 %
Nonperforming loans to total assets						0.53						0.49						0.36
Nonperforming loans to total loans						0.68						0.63						0.47

(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)
		9/30/2024						6/30/2024						9/30/2023
		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		$ 4,402		$ -		$ 4,402		$ 3,349		$ -		$ 3,349		$ 3,320		$ -		$ 3,320
Home equity loans and lines		785		-		785		705		-		705		742		-		742
Commercial real estate		13,271		200		13,471		14,957		200		15,157		14,185		230		14,415
Construction and land		5,167		-		5,167		5,304		-		5,304		5,123		-		5,123
Multi-family residential		1,079		-		1,079		582		-		582		523		-		523
Commercial and industrial		6,635		42		6,677		6,320		58		6,378		6,161		105		6,266
Consumer		697		-		697		737		-		737		734		-		734
Total allowance for loan losses		$ 32,036		$ 242		$ 32,278		$ 31,954		$ 258		$ 32,212		$ 30,788		$ 335		$ 31,123
Unfunded lending commitments(2)		2,460		-		2,460		2,460		-		2,460		2,454		-		2,454
Total allowance for credit losses		$ 34,496		$ 242		$ 34,738		$ 34,414		$ 258		$ 34,672		$ 33,242		$ 335		$ 33,577
Allowance for loan losses to nonperforming assets						175.84 %						188.94 %						252.81 %
Allowance for loan losses to nonperforming loans						178.44 %						191.53 %						260.47 %
Allowance for loan losses to total loans						1.21 %						1.21 %						1.21 %
Allowance for credit losses to total loans						1.30 %						1.30 %						1.31 %
Year-to-date loan charge-offs						$ 1,030						$ 815						$ 148
Year-to-date loan recoveries						229						88						296
Year-to-date net loan (charge-offs) recoveries						$ (801)						$ (727)						$ 148
Annualized YTD net loan (charge- offs) recoveries to average loans						(0.04) %						(0.06) %						0.01 %

(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.