EX-99.1 2 a2021q2earningsrelease.htm EX-99.1

Document

For further information contact:

John W. Bordelon, Chairman of the Board, President and CEO

(337) 237-1960

Release Date:			July 27, 2021
			For Immediate Release

HOME BANCORP, INC. ANNOUNCES 2021 SECOND QUARTER RESULTS

AND DECLARES QUARTERLY DIVIDEND

Lafayette, Louisiana – 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 second quarter of 2021. For the quarter, the Company reported net income of $11.4 million, or $1.34 per diluted common share (“diluted EPS”), down $532,000 from $11.9 million, or $1.41 diluted EPS, for the first quarter of 2021.

“The credit quality of our loan portfolio and the economic conditions within our markets continued to strengthen through the second quarter of 2021”, said John W. Bordelon, Chairman, President and Chief Executive Officer of the Company and the Bank. "Since December 31, 2020, our nonperforming assets have declined $4.9 million, loans granted relief related to COVID-19 have fallen to less than 1% of total loans, and we have reversed $5.1 million of the allowance for loan losses.”

“Increased liquidity for our customers due to government stimulus has contributed to the improvement in credit quality, but it has also limited loan growth during the quarter. Despite this challenge, our disciplined lending practices and strong capital levels keep us well positioned to take advantage of a rapidly growing economy. Our employees have done a tremendous job of supporting our customers and their communities and, as a result, we are optimistic about the second half 2021.”

COVID-19 Impacts

Nearly all COVID-19 related restrictions were removed in Mississippi during the first quarter of 2021, while Louisiana lifted its mask mandate in April 2021 and ended capacity limits in May 2021.

Under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"), the Company funded 3,072 PPP loans totaling $262.2 million during 2020. During the first six months of 2021, the Company funded an additional 1,803 PPP loans totaling $126.5 million. At June 30, 2021, the total recorded net investment in PPP loans was $197.6 million, of which 2,209 loans with an aggregate outstanding balance of $64.1 million were for amounts of $150,000 or less.

To give immediate financial support to our customers, the Company began providing principal and/or interest payment deferral options in March 2020. At June 30, 2021, $7.0 million, or less than 1% of total loans, were under deferral agreements. The level of COVID-19 related deferrals previously totaled $558.8 million, or 28% of total loans, at June 30, 2020. Of the loans that have exited deferral agreements, $443.7 million, or 99%, were current and performing as of June 30, 2021.

1

Second Quarter 2021 Highlights

•Net income totaled $11.4 million, down $532,000, or 4%, from the prior quarter.

•Return on average assets, return on average equity and return on average tangible common equity were 1.67%, 13.68% and 17.18%, respectively.

•The Company recorded a $3.4 million reversal to the allowance for loan losses, compared to a $1.7 million allowance reversal in the prior quarter, primarily due to improvements in our assessment of the economic impact of the COVID-19 pandemic and an increase in prepayments on loans.

•Loan income from the recognition of deferred PPP lender fees totaled $1.8 million, down $1.5 million from the prior quarter.

•Noninterest income was down $766,000, or 19%, from the prior quarter primarily due to a $609,000 decrease in gains on the sale of loans and a $459,000 loss on the sale of a branch location.

•Loans totaled $1.9 billion at June 30, 2021, down $61.4 million, or 3%, from March 31, 2021. PPP loans totaled $197.6 million at June 30, 2021, down $38.1 million, or 16%, from March 31, 2021.

•The allowance for loan losses totaled $26.7 million, or 1.39% of total loans, at June 30, 2021. Excluding PPP loans, the ratio of allowance for loan losses to total loans was 1.55%, at such date.

•Nonperforming assets totaled $15.1 million, or 0.55% of total assets, down $2.2 million, or 13%, from March 31, 2021.

•Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.89% and 16.07%, respectively, at June 30, 2021, compared to 9.89% and 15.37%, respectively, at March 31, 2021.

2

Loans

Loans totaled $1.9 billion at June 30, 2021, down $61.4 million, or 3%, from March 31, 2021. PPP loans, included in commercial and industrial loans, decreased $38.1 million, or 16%, from March 31, 2021. The following table summarizes the changes in the Company’s loan portfolio from March 31, 2021 to June 30, 2021.

(dollars in thousands)						6/30/2021						3/31/2021						Increase (Decrease)
Real estate loans:
One- to four-family first mortgage						$	365,640					$	380,207					$	(14,567)					(4)		%
Home equity loans and lines						64,614						65,556						(942)						(1)
Commercial real estate						755,707						744,971						10,736						1
Construction and land						233,714						242,156						(8,442)						(3)
Multi-family residential						82,966						82,726						240						—
Total real estate loans						1,502,641						1,515,616						(12,975)						(1)
Other loans:
Commercial and industrial						380,751						428,019						(47,268)						(11)
Consumer						35,096						36,233						(1,137)						(3)
Total other loans						415,847						464,252						(48,405)						(10)
Total loans						$	1,918,488					$	1,979,868					$	(61,380)					(3)		%

During the second quarter of 2021, the Company continued to experience an increase in pay-downs across nearly all segments of the loan portfolio. The growth in commercial real estate and multifamily loans was primarily due to the conversion of existing construction loans to permanent financing.

Credit Quality and Allowance for Credit Losses

At June 30, 2021, loans under interest and/ or principal payment deferral agreements due to the COVID-19 crisis totaled $7.0 million, or less than 1% of total loans, down from $27.7 million at March 31, 2021. Of the loans that have exited deferral agreements, $443.7 million, or 99%, were current and performing as of June 30, 2021.

Nonperforming assets (“NPAs”) totaled $15.1 million, or 0.55% of total assets, at June 30, 2021, down $2.2 million, or 13%, from $17.3 million, or 0.64% of total assets, at March 31, 2021. During the second quarter of 2021, the Company recorded net loan recoveries of $119,000, compared to net charge-offs of $1.3 million during the first quarter of 2021. Charge-offs during the first quarter were primarily attributable to an acquired hotel loan and one originated commercial loan relationship, both of which were nonperforming prior to the COVID-19 crisis.

The Company reversed $3.4 million of the allowance for loan losses in the second quarter of 2021 primarily due to improvements in our assessment of the economic impact of the COVID-19 pandemic and an increase in prepayments on loans. For the six months ended June 30, 2021, we reversed a total of $5.1 million of the allowance for loan losses. At June 30, 2021, the allowance for loan losses totaled $26.7 million, or 1.39% of total loans, compared to $30.0 million, or 1.51% of total loans, at March 31, 2021. Excluding PPP loans, the ratios of allowance for loan losses to total loans were 1.55% and 1.72% at June 30, 2021 and March 31, 2021, respectively. Changes in expected losses consider various factors including the changing economic activity, potential mitigating effects of governmental stimulus, the duration of the health crisis, customer specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.

3

The following table provides a summary of the loan portfolio and related reserves at June 30, 2021. We have separately identified certain information regarding PPP loans which, due to the existence of full repayment guarantees from the SBA as well as the likelihood that the vast majority of such loans will be forgiven, we believe entail minimal credit risk to the Company.

						Loans												Allowance for Credit Losses
(dollars in thousands)						Total Loans						PPP Loans						Total ACL						ACL to Total Loans						ACL to Total Non-PPP Loans
June 30, 2021
Retail CRE						$	180,608					$	—					$	5,267					2.92		%				2.92		%
Hotels and short-term rentals						102,542						6,661						4,718						4.60						4.92
Restaurants and bars						92,928						31,927						2,255						2.43						3.70
Energy						41,944						8,818						1,024						2.44						3.09
Credit cards						3,826						—						306						8.00						8.00
Other loans						1,496,640						150,208						13,117						0.88						0.97
Total						$	1,918,488					$	197,614					$	26,687					1.39		%				1.55		%
Unfunded lending commitments(1)						—						—						1,800						—						—
Total						$	1,918,488					$	197,614					$	28,487					1.48		%				1.66		%

(1)The ACL on unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.

Deposits

Total deposits were $2.4 billion at June 30, 2021, up $42.4 million, or 2%, from March 31, 2021. The following table summarizes the changes in the Company’s deposits from March 31, 2021 to June 30, 2021.

(dollars in thousands)						6/30/2021						3/31/2021						Increase (Decrease)
Demand deposits						$	715,167					$	687,254					$	27,913					4		%
Savings						277,899						272,021						5,878						2
Money market						362,938						346,662						16,276						5
NOW						680,297						679,130						1,167						—
Certificates of deposit						334,463						343,298						(8,835)						(3)
Total deposits						$	2,370,764					$	2,328,365					$	42,399					2		%

The average rate on interest-bearing deposits decreased six basis points from 0.42% for the first quarter of 2021 to 0.36% for the second quarter of 2021. At June 30, 2021, certificates of deposit maturing within the next 12 months totaled $282.1 million.

4

Net Interest Income

The net interest margin ("NIM") decreased 39 basis points from 4.14% for the first quarter of 2021 to 3.75% for the second quarter of 2021 primarily due to a decrease in the average yield on loans and an increase in lower yielding other interest-earning assets.

The average loan yield was 4.95% for the second quarter of 2021, down 26 basis points from the first quarter of 2021. During the second quarter of 2021, PPP loans decreased the average loan yield by 11 basis points and increased the NIM by four basis points. During the first quarter of 2021, PPP loans increased the average loan yield by 18 basis points and increased the NIM by 26 basis points. Excluding the impact of PPP loans, the average loan yield increased three basis points and the NIM decreased 17 basis points from the first quarter of 2021.

Average PPP loans were $228.1 million for the second quarter of 2021, down $10.7 million, or 4%, from the first quarter of 2021. Loan income from the recognition of deferred PPP lender fees totaled $1.8 million during the second quarter of 2021, down $1.5 million, or 46%, compared to the first quarter of 2021. Unrecognized PPP lender fees totaled $7.7 million at June 30, 2021, which will be amortized into interest income over the life of the loans.

Average other interest-earning assets were $314.0 million for the second quarter of 2021, up $130.2 million, or 71%, from the first quarter of 2021 primarily due to an increase in cash and cash equivalents. During the second quarter of 2021, the increase in cash and cash equivalents from the prior quarter negatively impacted the NIM by 19 basis points.

Loan accretion income from acquired loans totaled $585,000 for the second quarter of 2021 and $736,000 for the first quarter of 2021.

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
						6/30/2021																		3/31/2021
(dollars in thousands)						Average Balance						Interest						Average Yield/ Rate						Average Balance						Interest						Average Yield/ Rate
Interest-earning assets:
Loans receivable						$	1,963,935					$	24,500					4.95		%				$	1,987,264					$	25,817					5.21		%
Investment securities (TE)						276,896						1,130						1.67						261,292						1,012						1.59
Other interest-earning assets						313,954						133						0.17						183,771						99						0.22
Total interest-earning assets						$	2,554,785					$	25,763					4.01		%				$	2,432,327					$	26,928					4.44		%
Interest-bearing liabilities:
Deposits:
Savings, checking, and money market						$	1,315,432					$	842					0.26		%				$	1,240,933					$	881					0.29		%
Certificates of deposit						341,300						638						0.75						352,501						775						0.89
Total interest-bearing deposits						1,656,732						1,480						0.36						1,593,434						1,656						0.42
Other borrowings						5,539						53						3.84						5,706						53						3.78
FHLB advances						27,699						120						1.73						28,424						124						1.74
Total interest-bearing liabilities						$	1,689,970					$	1,653					0.39		%				$	1,627,564					$	1,833					0.46		%
Net interest spread (TE)																		3.62		%																3.98		%
Net interest margin (TE)																		3.75		%																4.14		%

5

Noninterest Income

Noninterest income for the second quarter of 2021 totaled $3.3 million, down $766,000, or 19%, from the first quarter of 2021.

Gains on the sale of loans were down $609,000 from the first quarter of 2021.

Losses on the sale of assets totaled $457,000 for the second quarter of 2021 due to the sale of a branch location. During the quarter, the Company sold and leased back one of its Mississippi branch locations. The sale transferred control to the buyer-lessor and all losses were recognized at the time of the sale.

Bank card fees were up $285,000 from the first quarter of 2021 primarily due to increased transaction activity by our cardholders.

Noninterest Expense

Noninterest expense for the second quarter of 2021 totaled $16.6 million, up $602,000, or 4%, from the first quarter of 2021.

Data processing and communication expense was up $173,000 from the first quarter of 2021 primarily due to increases in the cost of loan management software, reflecting increased costs related to higher PPP loan origination volume as well as costs related to the implementation of enhancements to our lending software.

The Company provisioned $375,000 for credit losses on unfunded loan commitments for the second quarter of 2021 primarily due to the growth in unfunded construction loan commitments from first quarter of 2021.

Dividend and Share Repurchases

The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.23 per share payable on August 20, 2021, to shareholders of record as of August 9, 2021.

The Company repurchased 42,258 shares of its common stock during the second quarter of 2021 at an average price per share of $38.55. An additional 216,345 shares remain eligible for purchase under the 2020 Repurchase Plan. The book value per share and tangible book value per share of the Company’s common stock was $38.92 and $31.72, respectively, at June 30, 2021.

6

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 and PPP loans. 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)						6/30/2021						3/31/2021						6/30/2020
Reported net income						$	11,396					$	11,928					$	2,921
Add: Core deposit intangible amortization, net tax						232						237						270
Non-GAAP tangible income						$	11,628					$	12,165					$	3,191
Total assets						$	2,764,756					$	2,707,517					$	2,636,432
Less: Intangible assets						62,520						62,813						63,777
Non-GAAP tangible assets						$	2,702,236					$	2,644,704					$	2,572,655
Total shareholders’ equity						$	337,812					$	328,610					$	311,071
Less: Intangible assets						62,520						62,813						63,777
Non-GAAP tangible shareholders’ equity						$	275,292					$	265,797					$	247,294
Total loans						$	1,918,488					$	1,979,868					$	1,965,925
Less: PPP loans						197,614						235,681						249,623
Total loans excluding PPP loans						$	1,720,874					$	1,744,187					$	1,716,302
Allowance for loan losses to total loans						1.39		%				1.51		%				1.72		%
Less: PPP loans						0.16						0.20						0.25
Non-GAAP allowance for loan losses to total loans						1.55		%				1.72		%				1.97		%
Return on average equity						13.68		%				14.80		%				3.73		%
Add: Average intangible assets						3.50						3.90						1.38
Non-GAAP return on average tangible common equity						17.18		%				18.70		%				5.11		%
Common equity ratio						12.22		%				12.14		%				11.80		%
Less: Intangible assets						2.03						2.09						2.19
Non-GAAP tangible common equity ratio						10.19		%				10.05		%				9.61		%
Book value per share						$	38.92					$	37.73					$	34.69
Less: Intangible assets						7.20						7.21						7.11
Non-GAAP tangible book value per share						$	31.72					$	30.52					$	27.58

7

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, 2020 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.

8

HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(dollars in thousands)						6/30/2021						3/31/2021						% Change						6/30/2020
Assets
Cash and cash equivalents						$	393,203					$	282,700					39		%				$	234,255
Interest-bearing deposits in banks						349						349						—						449
Investment securities available for sale, at fair value						285,185						274,965						4						256,922
Investment securities held to maturity						2,118						2,126						—						4,333
Mortgage loans held for sale						3,752						5,304						(29)						13,359
Loans, net of unearned income						1,918,488						1,979,868						(3)						1,965,925
Allowance for loan losses						(26,687)						(29,993)						(11)						(33,823)
Total loans, net of allowance for loan losses						1,891,801						1,949,875						(3)						1,932,102
Office properties and equipment, net						44,232						45,138						(2)						45,967
Cash surrender value of bank-owned life insurance						40,781						40,559						1						39,953
Goodwill and core deposit intangibles						62,520						62,813						—						63,777
Accrued interest receivable and other assets						40,815						43,688						(7)						45,315
Total Assets						$	2,764,756					$	2,707,517					2						$	2,636,432
Liabilities
Deposits						$	2,370,764					$	2,328,365					2		%				$	2,266,704
Other Borrowings						5,539						5,539						—						5,539
Federal Home Loan Bank advances						27,502						28,106						(2)						35,041
Accrued interest payable and other liabilities						23,139						16,897						37						18,077
Total Liabilities						2,426,944						2,378,907						2						2,325,361
Shareholders' Equity
Common stock						87						87						—		%				90
Additional paid-in capital						165,296						165,155						—						166,494
Common stock acquired by benefit plans						(2,604)						(2,695)						3						(2,970)
Retained earnings						171,644						163,507						5						142,327
Accumulated other comprehensive income						3,389						2,556						33						5,130
Total Shareholders' Equity						337,812						328,610						3						311,071
Total Liabilities and Shareholders' Equity						$	2,764,756					$	2,707,517					2						$	2,636,432

9

HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
						Quarter Ended
(dollars in thousands, except per share data)						6/30/2021						3/31/2021						% Change						6/30/2020						% Change
Interest Income
Loans, including fees						$	24,500					$	25,817					(5)		%				$	24,371					1		%
Investment securities						1,130						1,012						12						1,182						(4)
Other investments and deposits						133						99						34						117						14
Total interest income						25,763						26,928						(4)						25,670						—
Interest Expense
Deposits						1,480						1,656						(11)		%				3,012						(51)		%
Other borrowings						53						53						—						53						—
Federal Home Loan Bank advances						120						124						(3)						188						(36)
Total interest expense						1,653						1,833						(10)						3,253						(49)
Net interest income						24,110						25,095						(4)						22,417						8
(Reversal) provision for loan losses						(3,425)						(1,703)						(101)						6,471						(153)
Net interest income after (reversal) provision for loan losses						27,535						26,798						3						15,946						73
Noninterest Income
Service fees and charges						1,146						1,072						7		%				942						22		%
Bank card fees						1,591						1,306						22						1,127						41
Gain on sale of loans, net						559						1,168						(52)						642						(13)
Income from bank-owned life insurance						221						225						(2)						228						(3)
Loss on sale of assets, net						(457)						—						—						(13)						(3415)
Other income						234						289						(19)						177						32
Total noninterest income						3,294						4,060						(19)						3,103						6
Noninterest Expense
Compensation and benefits						9,687						9,664						—		%				9,362						3		%
Occupancy						1,733						1,696						2						1,653						5
Marketing and advertising						268						171						57						160						68
Data processing and communication						2,159						1,986						9						1,760						23
Professional fees						217						234						(7)						255						(15)
Forms, printing and supplies						163						159						3						160						2
Franchise and shares tax						359						360						—						389						(8)
Regulatory fees						306						379						(19)						362						(15)
Foreclosed assets, net						101						123						(18)						145						(30)
Amortization of acquisition intangible						293						300						(2)						342						(14)
Provision for credit losses on unfunded commitments						375						—						—						—						—
Other expenses						907						894						1						865						5
Total noninterest expense						16,568						15,966						4						15,453						7
Income before income tax expense						14,261						14,892						(4)						3,596						297
Income tax expense						2,865						2,964						(3)						675						324
Net income						$	11,396					$	11,928					(4)						$	2,921					290
Earnings per share - basic						$	1.35					$	1.41					(4)		%				$	0.33					309		%
Earnings per share - diluted						$	1.34					$	1.41					(5)		%				$	0.33					306		%
Cash dividends declared per common share						$	0.23					$	0.22					5		%				$	0.22					5		%

10

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
(Unaudited)
						Quarter Ended
(dollars in thousands, except per share data)						6/30/2021						3/31/2021						% Change						6/30/2020						% Change
EARNINGS DATA
Total interest income						$	25,763					$	26,928					(4)		%				$	25,670					—		%
Total interest expense						1,653						1,833						(10)						3,253						(49)
Net interest income						24,110						25,095						(4)						22,417						8
Provision for loan losses						(3,425)						(1,703)						(101)						6,471						(153)
Total noninterest income						3,294						4,060						(19)						3,103						6
Total noninterest expense						16,568						15,966						4						15,453						7
Income tax expense						2,865						2,964						(3)						675						324
Net income						$	11,396					$	11,928					(4)						$	2,921					290
AVERAGE BALANCE SHEET DATA
Total assets						$	2,741,801					$	2,620,664					5		%				$	2,564,210					7		%
Total interest-earning assets						2,554,785						2,432,327						5						2,370,381						8
Total loans						1,963,935						1,987,264						(1)						1,928,185						2
PPP loans						228,114						238,813						(4)						180,712						26
Total interest-bearing deposits						1,656,732						1,593,434						4						1,548,619						7
Total interest-bearing liabilities						1,689,970						1,627,564						4						1,624,618						4
Total deposits						2,355,315						2,241,918						5						2,155,963						9
Total shareholders' equity						334,092						326,829						2						315,174						6
PER SHARE DATA
Earnings per share - basic						$	1.35					$	1.41					(4)		%				$	0.33					309		%
Earnings per share - diluted						1.34						1.41						(5)						0.33						306
Book value at period end						38.92						37.73						3						34.69						12
Tangible book value at period end						31.72						30.52						4						27.58						15
Shares outstanding at period end						8,678,686						8,709,631						—						8,966,101						(3)
Weighted average shares outstanding
Basic						8,448,777						8,436,624						—		%				8,701,730						(3)		%
Diluted						8,499,103						8,476,445						—						8,730,437						(3)
SELECTED RATIOS (1)
Return on average assets						1.67		%				1.85		%				(10)		%				0.46		%				263		%
Return on average equity						13.68						14.80						(8)						3.73						267
Common equity ratio						12.22						12.14						1						11.80						4
Efficiency ratio (2)						60.46						54.76						10						60.55						—
Average equity to average assets						12.19						12.47						(2)						12.29						(1)
Tier 1 leverage capital ratio (3)						9.89						9.89						—						9.11						9
Total risk-based capital ratio (3)						16.07						15.37						5						14.83						8
Net interest margin (4)						3.75						4.14						(9)						3.76						—
SELECTED NON-GAAP RATIOS (1)
Tangible common equity ratio (5)						10.19		%				10.05		%				1		%				9.61		%				6		%
Return on average tangible common equity (6)						17.18						18.70						(8)						5.11						236

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(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.

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HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION
(Unaudited)
						6/30/2021																		3/31/2021																		6/30/2020
(dollars in thousands)						Originated						Acquired						Total						Originated						Acquired						Total						Originated						Acquired						Total
CREDIT QUALITY (1)
Nonaccrual loans(2)						$	8,279					$	5,693					$	13,972					$	8,735					$	6,958					$	15,693					$	14,126					$	10,966					$	25,092
Accruing loans past due 90 days and over						4						—						4						—						—						—						—						906						906
Total nonperforming loans						8,283						5,693						13,976						8,735						6,958						15,693						14,126						11,872						25,998
Foreclosed assets and ORE						724						389						1,113						1,082						499						1,581						1,060						914						1,974
Total nonperforming assets						9,007						6,082						15,089						9,817						7,457						17,274						15,186						12,786						27,972
Performing troubled debt restructurings						4,117						1,103						5,220						2,042						971						3,013						917						457						1,374
Total nonperforming assets and troubled debt restructurings						$	13,124					$	7,185					$	20,309					$	11,859					$	8,428					$	20,287					$	16,103					$	13,243					$	29,346
Nonperforming assets to total assets																		0.55		%																0.64		%																1.06		%
Nonperforming loans to total assets																		0.51																		0.58																		0.99
Nonperforming loans to total loans																		0.73																		0.79																		1.32
Allowance for loan losses to nonperforming assets																		176.86																		173.63																		120.92
Allowance for loan losses to nonperforming loans																		190.95																		191.12																		130.10
Allowance for loan losses to total loans																		1.39																		1.51																		1.72
Allowance for credit losses to total loans(3)																		1.48																		1.59																		1.79
Year-to-date loan charge-offs																		$	1,559																	$	1,330																	$	1,627
Year-to-date loan recoveries																		411																		63																		221
Year-to-date net loan charge-offs																		$	1,148																	$	1,267																	$	1,406
Annualized YTD net loan charge-offs to average loans																		0.12		%																0.26		%																0.15		%

(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.

(2)Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $4.1 million, $5.0 million and $8.1 million at June 30, 2021, March 31, 2021 and June 30, 2020, respectively. Acquired restructured loans placed on nonaccrual totaled $3.5 million, $3.7 million and $2.2 million at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.

(3)The allowance for credit losses includes $1.8 million and $1.4 million for unfunded lending commitments at June 30, 2021 and March 31, 2021, respectively. 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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