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 Logo. (PRNewsFoto/Home Bancorp, Inc.) (PRNewsFoto/)

“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.

 

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SOURCE Home Bancorp, Inc.