Home Bancorp Announces 2020 Fourth Quarter Results And Declares Quarterly Dividend

About this update from Home Bancorp, Inc.

LAFAYETTE, La. , Jan. 26, 2021 /PRNewswire/ -- Home Bancorp, Inc. (Nasdaq: "HBCP") (the "Company"), the parent company for Home Bank, N.A . (the "Bank") ( www.home24bank.com ), reported financial results for the fourth quarter of 2020. For the quarter, the Company reported net income of $11.6 million , or $1.36 per diluted common share ("diluted EPS"), up $2.8 million from $8.8 million , or $1.01 diluted EPS, for the third quarter of 2020. "2020 was a very challenging year for the Company and our customers with the impact of the COVID-19 pandemic and economic crisis", said John W. Bordelon , Chairman, President and Chief Executive Officer of the Company and the Bank. "The Bank remains well positioned with the reserve builds we made in the first half of 2020 to withstand potential losses given the impact of the ongoing COVID-19 pandemic on economic conditions and credit quality in our markets." "I am proud of the commitment by our employees to serve our communities and remain focused on loan and deposit growth in this challenging environment. They are ready to assist customers in the second round of the Paycheck Protection Program." "Our customers have proven to be resilient during troubling times and we will weather the storm together." COVID-19 Response Banking operations remain unencumbered by state and local government COVID-19 restrictions. However, we have adapted to protect our employees and customers by working remotely, enhancing cleaning procedures, and enacting several other measures to reduce the risk of transmission of the virus. State government imposed COVID-19 restrictions continue to be in place within our Louisiana and Mississippi markets. The restrictions primarily place limits on capacity and hours of operation of certain businesses. During the second and third quarters of 2020, the Company funded approximately 3,072 loans totaling $262.2 million under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"). At December 31, 2020 , the total recorded net investment in PPP loans was $221.2 million , of which approximately 2,495 loans with an aggregate outstanding balance of $70.5 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 relief options in March 2020 . When we last reported the level of such deferrals in our third quarter Form 10-Q (as of September 30, 2020 ), $70.2 million , or 4% of total loans, were under deferral agreements. As of December 31, 2020 , the level of deferrals decreased to $36.0 million , or 2% of total loans. The level of COVID-19 related deferrals formerly totaled $558.8 million , or 28% of total loans, at June 30, 2020 . Of the loans that have exited deferral agreements, $469.2 million , or 98%, were current and performing as of December 31, 2020 . Fourth Quarter 2020 Highlights Net income totaled $11.6 million , up $2.8 million , or 32%, from the prior quarter primarily due to a $1.5 million increase in interest income on loans and the release of $1.3 million in the allowance for credit losses on unfunded lending commitments. Loan income from the recognition of deferred PPP lender fees totaled $2.2 million , up $1.1 million from the prior quarter. Loan accretion income from acquired loans totaled $1.7 million , up $847,000 compared to the prior quarter. A revision to the Company's estimate of credit loss on unfunded lending commitments led to a release of $1.3 million in reserves through noninterest expense and a $740,000 (net of tax) increase to retained earnings to adjust the impact of CECL adoption. Loans totaled $2.0 billion at December 31, 2020 , up $24.7 million , or 5% annualized, from September 30, 2020 . Excluding PPP loans, loan growth during the same comparative period was up $57.9 million , or 14% annualized. For the second consecutive quarter, the Company recorded no provision for loan losses. In light of our reserve builds during the first half of 2020, no additional provisions were made. The allowance for loan losses totaled $33.0 million , or 1.66% of total loans, at December 31, 2020 . The allowance for credit losses ("ACL"), which includes the allowance for unfunded lending commitments, totaled $34.4 million , or 1.74% of total loans, at December 31, 2020 . Excluding PPP loans, the ratio of allowance for loan losses to total loans and the ratio for allowance for credit losses was 1.87% and 1.96%, respectively, at such date. Nonperforming assets totaled $20.0 million , or 0.77% of total assets, down $4.9 million , or 20%, from September 30, 2020 primarily due to pay-downs on nonaccrual loans. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.68% and 15.18% at December 31, 2020 , compared to 9.44% and 15.29% at September 30, 2020 . The net interest margin was 4.11% for the fourth quarter of 2020, up 29 basis points from the third quarter of 2020 primarily due to an increase in interest income on loans and further aided by a decrease in the cost of deposits. The average yield on total interest-bearing deposits was 0.50% for the fourth quarter of 2020, down 10 basis points from the third quarter of 2020. Loans Loans totaled $2.0 billion at December 31, 2020 , up $24.7 million , or 1%, from September 30, 2020 . The following table summarizes the changes in the Company's loan portfolio from September 30, 2020 to December 31, 2020 . December 31 , September 30 , Increase (Decrease) (dollars in thousands) 2020 2020 Amount Percent Real estate loans: One- to four-family first mortgage $ 395,638 $ 409,282 $ (13,644) (3) % Home equity loans and lines 67,700 67,766 (66) — Commercial real estate 750,623 707,638 42,985 6 Construction and land 221,823 201,575 20,248 10 Multi-family residential 87,332 86,619 713 1 Total real estate loans 1,523,116 1,472,880 50,236 3 Other loans: Commercial and industrial 417,926 443,480 (25,554) (6) Consumer 38,912 38,937 (25) — Total other loans 456,838 482,417 (25,579) (5) Total loans $ 1,979,954 $ 1,955,297 $ 24,657 1 % During the fourth quarter of 2020, substantial commercial real estate and construction and land loan growth was partially offset by pay-downs of commercial and industrial loans and residential mortgages. The change in commercial and industrial loans included a decrease in PPP loans of $33.3 million , or 13%, from September 30, 2020 . Residential mortgages declined primarily due to refinances as borrowers sought to acquire lower interest rates. Commercial real estate ("CRE") loan growth was fairly evenly distributed across our major Louisiana markets and was primarily attributable to non-owner-occupied loans to borrowers outside of industry sectors that have been subject to increased monitoring during the COVID-19 pandemic. At December 31, 2020 , CRE loans within our Acadiana and New Orleans markets accounted for approximately 65% of our total commercial real estate portfolio. Construction and land ("C&D") loan growth was spread across our New Orleans , Acadiana and Baton Rouge markets and was primarily driven by non-residential construction projects. At December 31, 2020 , C&D loans within our Acadiana, New Orleans , and Northshore markets accounted for approximately 70% of our total construction and land portfolio. Credit Quality and Allowance for Credit Losses Nonperforming assets ("NPAs"), totaled $20.0 million , or 0.77% of total assets at December 31, 2020 , down $4.9 million , or 20%, from $24.8 million , or 0.96% of total assets, at September 30, 2020 . The Company recorded net loan charge-offs of $39,000 during the fourth quarter of 2020, compared to net loan charge-offs of $821,000 for the third quarter of 2020. At December 31, 2020 , loans under interest and/or principal payment deferral agreements due to the COVID-19 crisis totaled $36.0 million , or 2% of total loans, down from $70.2 million , or 4% of total loans, as of September 30, 2020 . Of the loans that have exited deferral agreements, $469.2 million , or 98%, were current and performing as of December 31, 2020 . The Company recorded no provision for loan losses for the fourth quarter of 2020. Upon review of our allowance for loan losses in light of, among other factors, our reserve builds during the first half of 2020, we determined that no additional provision was required during the quarter in order to reflect the expected losses for the full lives of the loans in our portfolio. The provision for loan losses for the year ended December 31, 2020 totaled $12.7 million , up $9.7 million from the prior year. 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. In addition to the allowance for loan losses, our allowance for credit losses includes an allowance for unfunded lending commitments. The allowance for unfunded lending commitments amounted to $1.4 million at December 31, 2020 compared to $3.6 million at September 30, 2020 . During the fourth quarter of 2020, we revised our estimate of losses on unfunded lending commitments which resulted in an aggregate release of $2.2 million of this allowance. Of the $2.2 million release of the allowance for unfunded lending commitments, $1.3 million was recognized as a reduction of non-interest expense and $940,000 ( $740,000 net of taxes) was recognized as an increase to retained earnings. The following table provides a summary of the loan portfolio and related reserves at December 31, 2020 . 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. (dollars in thousands) Total Loans PPP Loans Total ACL ACL to Total Loans ACL to Total Non-PPP Loans December 31, 2020 Retail CRE $ 190,085 $ — $ 6,641 3.49 % 3.49 % Hotels and short-term rentals 103,875 3,587 5,754 5.54 5.74 Restaurants and bars 92,789 30,990 3,106 3.35 5.03 Energy 31,304 — 1,638 5.23 5.23 Credit cards 4,012 — 403 10.04 10.04 Other loans 1,557,889 186,643 15,421 0.99 1.12 Total $ 1,979,954 $ 221,220 $ 32,963 1.66 % 1.87 % Unfunded lending commitments(1) — — 1,425 — — Total $ 1,979,954 $ 221,220 $ 34,388 1.74 % 1.96 % (1) At December 31, 2020 , the allowance of $1.4 million related to unfunded lending commitments of $336.9 million . The ACL on unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition. Investment Securities The following table summarizes the composition of the Company's investment securities portfolio at December 31, 2020 . (dollars in thousands) Recorded Investment Available for sale U.S. agency mortgage-backed $ 142,812 Collateralized mortgage obligations 75,620 Municipal bonds 28,011 U.S. government agency 6,255 Corporate bonds 2,054 Total available for sale 254,752 Held to Maturity Municipal Bonds 2,934 Total investment securities $ 257,686 Securities available for sale ("AFS") made up 99% of total investment securities and net unrealized gains on AFS securities totaled $6.5 million at December 31, 2020 . Deposits Total deposits were $2.2 billion at December 31, 2020 , up $6.3 million , or less than 1%, from September 30, 2020 . The following table summarizes the changes in the Company's deposits from September 30, 2020 to December 31, 2020 . December 31 , September 30 , Increase/(Decrease) (dollars in thousands) 2020 2020 Amount Percent Demand deposits $ 615,700 $ 629,345 $ (13,645) (2) % Savings 250,165 242,849 7,316 3 Money market 333,078 336,310 (3,232) (1) NOW 646,085 620,081 26,004 4 Certificates of deposit 368,793 378,909 (10,116) (3) Total deposits $ 2,213,821 $ 2,207,494 $ 6,327 — % Net Interest Income The net interest margin ("NIM") increased 29 basis points from 3.82% for the third quarter of 2020 to 4.11% for the fourth quarter of 2020 primarily due to an increase in loan income and further aided by a decrease in the cost of deposits. The average loan yield was 5.20% for the fourth quarter of 2020, up 26 basis points from the third quarter of 2020. Loan income from the recognition of deferred PPP lender fees totaled $2.2 million during the fourth quarter of 2020, up $1.1 million , or 103%, compared to the third quarter of 2020. As a result, PPP loans positively impacted the average loan yield by 11 basis points and the NIM by 5 basis points during the fourth quarter of 2020. During the third quarter of 2020, PPP loans negatively impacted the average loan yield by 34 basis points and the NIM by 14 basis points. The receipt of forgiveness payments on PPP loans during the fourth quarter accelerated the recognition of deferred fees. Management anticipates this trend to continue into the first quarter of 2021 as the forgiveness process for PPP loans under $150,000 is expected to be expedited. At December 31, 2020 , the total recorded net investment in PPP loans was $221.2 million , of which $70.5 million , or 32%, were for amounts of $150,000 or less. Unrecognized PPP lender fees totaled $5.4 million at December 31, 2020 . Loan accretion income from acquired loans totaled $1.7 million for the fourth quarter of 2020, up $847,000 , or 100%, compared to the third quarter of 2020. During the fourth quarter, the Company received pay-downs on an acquired CRE and residential mortgage loans, which accelerated the accretion of discount into interest income on loans. The average yield on total interest-bearing deposits was 0.50% for the fourth quarter of 2020, down 10 basis points from the third quarter of 2020. The following table summarizes the Company's average volume and rate of its interest-earning assets and interest-bearing liabilities for the periods indicated. Taxable equivalent ("TE") yields on investment securities have been calculated using a marginal tax rate of 21%. For the Three Months Ended December 31, 2020 September 30, 2020 (dollars in thousands) Average Balance Interest Average Yield/ Rate Average Balance Interest Average Yield/ Rate Interest-earning assets: Loans receivable $ 1,984,969 $ 26,267 5.20 % $ 1,971,174 $ 24,769 4.94 % Investment securities (TE) 246,547 1,002 1.66 252,314 967 1.56 Other interest-earning assets 182,833 99 0.22 170,957 106 0.25 Total interest-earning assets $ 2,414,349 $ 27,368 4.46 % $ 2,394,445 $ 25,842 4.25 % Interest-bearing liabilities: Deposits: Savings, checking, and money market $ 1,217,430 $ 970 0.32 % $ 1,195,455 $ 1,136 0.38 % Certificates of deposit 375,597 1,017 1.08 381,949 1,232 1.28 Total interest-bearing deposits 1,593,027 1,987 0.50 1,577,404 2,368 0.60 Other borrowings 5,539 53 3.81 5,539 53 3.81 FHLB advances 29,742 129 1.74 34,612 149 1.73 Total interest-bearing liabilities $ 1,628,308 $ 2,169 0.53 % $ 1,617,555 $ 2,570 0.63 % Net interest spread (TE) 3.93 % 3.62 % Net interest margin (TE) 4.11 % 3.82 % Noninterest Income Noninterest income for the fourth quarter of 2020 was $4.1 million , up $256,000 , or 7%, from the third quarter of 2020 due primarily to gains on the sale of loans (up $178,000 ) and other income (up $97,000 ). Other income increased primarily due to fees earned on a risk participation agreement entered into during the fourth quarter of 2020. Noninterest Expense Noninterest expense for the fourth quarter of 2020 totaled $14.7 million , down $1.4 million , or 9%, compared to the third quarter of 2020. The Company released $2.2 million of the allowance for credit losses on unfunded lending commitments during the fourth quarter of 2020, reflecting, among other factors, refinement of our estimate of future funding rates on unfunded lending commitments. The release of a portion of the allowance for unfunded loan commitments reduced noninterest expense by $1.3 million during the fourth quarter of 2020, with the remaining $940,000 of the release ( $740,000 net of taxes) being recorded as an increase in retained earnings. Compensation and benefits expense was down $323,000 from the third quarter of 2020 primarily due to the absence of bonuses, which were paid during the third quarter. Regulatory fees were down $153,000 from the third quarter of 2020 due to a decrease in the FDIC assessment for the fourth quarter. The Company's improved financial condition led to a more favorable assessment rate. Other expenses were up $198,000 from the third quarter of 2020 primarily due to certain loan servicing fees and expenses. Capital and Liquidity The Company's tangible common equity ratio was 10.23% and 9.93% at December 31, 2020 and September 30, 2020 , respectively. At December 31, 2020 , the Bank's preliminary Tier 1 leverage capital ratio was 9.68%, up 24 basis points from September 30, 2020 , and preliminary total risk-based capital ratio was 15.18%, down 11 basis points from September 30, 2020 . Loans covered under the PPP are included in the Bank's Tier 1 leverage capital ratio. The following table summarizes the Company's primary and secondary sources of liquidity. December 31 , (dollars in thousands) 2020 Cash and cash equivalents $ 187,952 Unpledged investment securities, amortized cost 125,342 FHLB advance availability 787,232 Unsecured lines of credit 55,000 Federal Reserve discount window availability 500 Total primary and secondary liquidity $ 1,156,026 Dividend and Share Repurchases The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.22 per share payable on February 19, 2021 , to shareholders of record as of February 8, 2021 . The Company repurchased 91,612 shares of its common stock during the fourth quarter of 2020 at an average price per share of $26.23 under the Company's 2020 Repurchase Plan. An additional 300,080 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 $36.82 and $29.60 , respectively, at December 31, 2020 . 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. For the Three Months Ended (dollars in thousands, except per share data) December 31 ,2020 September 30 ,2020 December 31 ,2019 Reported net income $ 11,585 $ 8,782 $ 6,606 Add: Core deposit intangible amortization, net tax 258 267 302 Non-GAAP tangible income $ 11,843 $ 9,049 $ 6,908 Total assets $ 2,591,850 $ 2,579,200 $ 2,200,465 Less: Intangible assets 63,112 63,439 64,472 Non-GAAP tangible assets $ 2,528,738 $ 2,515,761 $ 2,135,993 Total shareholders' equity $ 321,842 $ 313,324 $ 316,329 Less: Intangible assets 63,112 63,439 64,472 Non-GAAP tangible shareholders' equity $ 258,730 $ 249,885 $ 251,857 Total loans $ 1,979,954 $ 1,955,297 $ 1,714,361 Less: PPP loans 221,220 254,487 — Total loans excluding PPP loans $ 1,758,734 $ 1,700,810 $ 1,714,361 Allowance for loan losses to total loans 1.66 % 1.69 % 1.04 % Less: PPP loans 0.21 0.25 — Non-GAAP allowance for loan losses to total loans 1.87 % 1.94 % 1.04 % Return on average equity 14.55 % 11.17 % 8.31 % Add: Average intangible assets 4.04 3.27 2.62 Non-GAAP return on average tangible common equity 18.59 % 14.44 % 10.93 % Common equity ratio 12.42 % 12.15 % 14.38 % Less: Intangible assets 2.19 2.22 2.59 Non-GAAP tangible common equity ratio 10.23 % 9.93 % 11.79 % Book value per share $ 36.82 $ 35.48 $ 34.19 Less: Intangible assets 7.22 7.18 6.97 Non-GAAP tangible book value per share $ 29.60 $ 28.30 $ 27.22 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, 2019 , as supplemented by its Current Report on Form 8-K dated April 28, 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. HOME BANCORP, INC. AND SUBSIDIARY CONDENSED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (dollars in thousands) December 31 , 2020 September 30 , 2020 % Change December 31 , 2019 Assets Cash and cash equivalents $ 187,952 $ 185,836 1 % $ 39,847 Interest-bearing deposits in banks 349 349 — 449 Investment securities available for sale, at fair value 254,752 251,578 1 257,321 Investment securities held to maturity 2,934 2,942 — 7,149 Mortgage loans held for sale 9,559 21,045 (55) 6,990 Loans, net of unearned income 1,979,954 1,955,297 1 1,714,361 Allowance for loan losses (32,963) (33,002) — (17,868) Total loans, net of allowance for loan losses 1,946,991 1,922,295 1 1,696,493 Office properties and equipment, net 45,497 45,696 — 46,425 Cash surrender value of bank-owned life insurance 40,334 40,184 — 39,466 Goodwill and core deposit intangibles 63,112 63,439 (1) 64,472 Accrued interest receivable and other assets 40,370 45,836 (12) 41,853 Total Assets $ 2,591,850 $ 2,579,200 — $ 2,200,465 Liabilities Deposits $ 2,213,821 $ 2,207,494 — % $ 1,820,975 Other Borrowings 5,539 5,539 — 5,539 Federal Home Loan Bank advances 28,824 31,445 (8) 40,620 Accrued interest payable and other liabilities 21,824 21,398 2 17,002 Total Liabilities 2,270,008 2,265,876 — 1,884,136 Shareholders' Equity Common stock 87 88 (1) % 93 Additional paid-in capital 164,988 165,522 — 168,545 Common stock acquired by benefit plans (2,789) (2,880) 3 (3,159) Retained earnings 154,282 145,373 6 150,158 Accumulated other comprehensive income 5,274 5,221 1 692 Total Shareholders' Equity 321,842 313,324 3 316,329 Total Liabilities and Shareholders' Equity $ 2,591,850 $ 2,579,200 — $ 2,200,465 HOME BANCORP, INC. AND SUBSIDIARY CONDENSED STATEMENTS OF INCOME (Unaudited) For the Three Months Ended (dollars in thousands, except per share data) December 31 ,2020 September 30 , 2020 % Change December 31 , 2019 % Change Interest Income Loans, including fees $ 26,267 $ 24,769 6 % $ 23,842 10 % Investment securities 1,002 967 4 1,341 (25) Other investments and deposits 99 106 (7) 261 (62) Total interest income 27,368 25,842 6 25,444 8 Interest Expense Deposits 1,987 2,368 (16) % 3,934 (49) % Other borrowings 53 53 — 54 (2) Federal Home Loan Bank advances 129 149 (13) 198 (35) Total interest expense 2,169 2,570 (16) 4,186 (48) Net interest income 25,199 23,272 8 21,258 19 Provision for loan losses — — — 713 (100) Net interest income after provision for loan losses 25,199 23,272 8 20,545 23 Noninterest Income Service fees and charges 1,117 1,123 (1) % 1,544 (28) % Bank card fees 1,273 1,331 (4) 1,102 16 Gain on sale of loans, net 1,082 904 20 316 242 Income from bank-owned life insurance 276 231 19 238 16 Loss on sale of assets, net — — — 1 (100) Other income 302 205 47 298 1 Total noninterest income 4,050 3,794 7 3,499 16 Noninterest Expense Compensation and benefits 9,417 9,740 (3) % 9,438 — % Occupancy 1,719 1,686 2 1,713 — Marketing and advertising 386 288 34 579 (33) Data processing and communication 1,913 1,851 3 1,829 5 Professional fees 187 197 (5) 172 9 Forms, printing and supplies 154 140 10 169 (9) Franchise and shares tax 331 378 (12) 248 33 Regulatory fees 373 526 (29) 113 230 Foreclosed assets, net 181 162 12 228 (21) Amortization of acquisition intangible 327 338 (3) 382 (14) Provision for credit losses on unfunded lending commitments (1,272) — — Other expenses 1,008 810 24 881 14 Total noninterest expense 14,724 16,116 (9) 15,752 (7) Income before income tax expense 14,525 10,950 33 8,292 75 Income tax expense 2,940 2,168 36 1,686 74 Net income $ 11,585 $ 8,782 32 $ 6,606 75 Earnings per share - basic $ 1.37 $ 1.01 36 % $ 0.74 85 % Earnings per share - diluted $ 1.36 $ 1.01 35 $ 0.73 86 Cash dividends declared per common share $ 0.22 $ 0.22 — % $ 0.22 — % HOME BANCORP, INC. AND SUBSIDIARY SUMMARY FINANCIAL INFORMATION (Unaudited) For the Three Months Ended (dollars in thousands, except per share data) December 31 , 2020 September 30 , 2020 % Change December 31 , 2019 % Change EARNINGS DATA Total interest income $ 27,368 $ 25,842 6 % $ 25,444 8 % Total interest expense 2,169 2,570 (16) 4,186 (48) Net interest income 25,199 23,272 8 21,258 19 Provision for loan losses — — — 713 (100) Total noninterest income 4,050 3,794 7 3,499 16 Total noninterest expense 14,724 16,116 (9) 15,752 (7) Income tax expense 2,940 2,168 36 1,686 74 Net income $ 11,585 $ 8,782 32 $ 6,606 75 AVERAGE BALANCE SHEET DATA Total assets $ 2,599,835 $ 2,582,239 1 % $ 2,219,049 17 % Total interest-earning assets 2,414,349 2,394,445 1 2,021,316 19 Total loans 1,984,969 1,971,174 1 1,712,035 16 Total interest-bearing deposits 1,593,027 1,577,404 1 1,384,250 15 Total interest-bearing liabilities 1,628,308 1,617,555 1 1,433,359 14 Total deposits 2,226,526 2,208,825 1 1,835,026 21 Total shareholders' equity 316,679 312,841 1 315,487 — SELECTED RATIOS (1) Return on average assets 1.77 % 1.35 % 31 % 1.18 % 50 % Return on average equity 14.55 11.17 30 8.31 75 Common equity ratio 12.42 12.15 2 14.38 (14) Efficiency ratio (2) 50.34 59.54 (15) 63.63 (21) Average equity to average assets 12.18 12.12 — 14.22 (14) Tier 1 leverage capital ratio (3) 9.68 9.44 3 11.17 (13) Total risk-based capital ratio (3) 15.18 15.29 (1) 15.28 (1) Net interest margin (4) 4.11 3.82 8 4.14 (1) SELECTED NON-GAAP RATIOS (1) Tangible common equity ratio (5) 10.23 % 9.93 % 3 % 11.79 % (13) % Return on average tangible common equity (6) 18.59 14.44 29 10.93 70 PER SHARE DATA Earnings per share - basic $ 1.37 $ 1.01 36 % $ 0.74 85 % Earnings per share - diluted 1.36 1.01 35 0.73 86 Book value at period end 36.82 35.48 4 34.19 8 Tangible book value at period end 29.60 28.30 5 27.22 9 Shares outstanding at period end 8,740,104 8,831,406 (1) 9,252,418 (6) Weighted average shares outstanding Basic 8,484,785 8,627,318 (2) % 8,953,203 (5) % Diluted 8,508,740 8,651,066 (2) 9,018,142 (6) (1) With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods. (2) The efficiency ratio represents noninterest expense as a percentage of total revenues. Total revenues is the sum of net interest income and noninterest income. (3) Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change. (4) Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%. (5) Tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. See "Non-GAAP Reconciliation" for additional information. (6) Return on average tangible common equity is net income plus amortization of core deposit intangible, net of taxes, divided by average common shareholders' equity less average intangible assets. See "Non-GAAP Reconciliation" for additional information. HOME BANCORP, INC. AND SUBSIDIARY SUMMARY CREDIT QUALITY INFORMATION (Unaudited) December 31, 2020 September 30, 2020 December 31, 2019 (dollars in thousands) Acquired Originated Total Acquired Originated Total Acquired Originated Total CREDIT QUALITY (1)(2) Nonaccrual loans (3) $ 8,748 $ 9,929 $ 18,677 $ 10,639 $ 12,204 $ 22,843 $ 9,758 $ 14,628 $ 24,386 Accruing loans past due 90 days and over — 2 2 — 10 10 — — — Total nonperforming loans 8,748 9,931 18,679 10,639 12,214 22,853 9,758 14,628 24,386 Foreclosed assets and ORE 880 422 1,302 1,029 956 1,985 2,363 1,793 4,156 Total nonperforming assets 9,628 10,353 19,981 11,668 13,170 24,838 12,121 16,421 28,542 Performing troubled debt restructurings 573 1,512 2,085 480 910 1,390 475 1,903 2,378 Total nonperforming assets and troubled debt restructurings $ 10,201 $ 11,865 $ 22,066 $ 12,148 $ 14,080 $ 26,228 $ 12,596 $ 18,324 $ 30,920 Nonperforming assets to total assets 0.77 % 0.96 % 1.30 % Nonperforming loans to total assets 0.72 0.89 1.11 Nonperforming loans to total loans 0.94 1.17 1.42 Allowance for loan losses to nonperforming assets 164.97 132.87 62.60 Allowance for loan losses to nonperforming loans 176.47 144.41 73.27 Allowance for loan losses to total loans 1.66 1.69 1.04 Allowance for credit losses to total loans(4) 1.74 1.87 1.04 Year-to-date loan charge-offs $ 2,601 $ 2,522 $ 1,577 Year-to-date loan recoveries 335 295 83 Year-to-date net loan charge-offs $ 2,266 $ 2,227 $ 1,494 Annualized YTD net loan charge-offs to average loans 0.12 % 0.16 % 0.09 % (1) Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. Due to the adoption of CECL, PCD loans of $390,000 and $2.1 million are included in nonperforming loans at December 31, 2020 and September 30, 2020 , respectively. Prior to January 1, 2020 , these loans were classified as PCI and excluded from nonperforming loans because they continued to earn interest income from the accretable yield at the pool level. With the adoption of CECL, the pools were discontinued and performance is based on contractual terms for individual loans. (2) It is our policy to cease accruing interest on loans 90 days or more past due. Nonperforming assets consist of nonperforming loans, foreclosed assets and other real estate (ORE). Foreclosed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure. ORE consists of closed or unused bank buildings. (3) Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $6.5 million , $7.2 million and $7.6 million at December 31, 2020 , September 30, 2020 and December 31, 2019 , respectively. Acquired restructured loans placed on nonaccrual totaled $3.5 million , $1.2 million and $2.2 million at December 31, 2020 , September 30, 2020 and December 31, 2019 , respectively. (4) The allowance for credit losses includes $1.4 million and $3.6 million for unfunded lending commitments at December 31, 2020 and September 30, 2020 , respectively. The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition. View original content to download multimedia: http://www.prnewswire.com/news-releases/home-bancorp-announces-2020-fourth-quarter-results-and-declares-quarterly-dividend-301214628.html SOURCE Home Bancorp, Inc.

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