HOME BANCORP ANNOUNCES 2023 FOURTH QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND

About this update from Home Bancorp, Inc.

LAFAYETTE, La. , Jan. 22, 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 fourth quarter of 2023. For the quarter, the Company reported net income of $9.4 million , or $1.17 per diluted common share ("diluted EPS"), down $369,000 from $9.8 million , or $1.22 diluted EPS, for the third quarter of 2023. " Home Bank's strong performance in 2023 demonstrated our ability to successfully navigate economic cycles," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "During the fourth quarter, we grew both loans and deposits, improved credit and reported strong profitability. Net interest margin, which decreased slightly to 3.69%, appears to be stabilizing as our strong customer relationships have made it possible to retain deposits while still maintaining discipline on interest expenses. Tangible book value per share continued to increase and Home Bancorp ended the year with a Tangible Common Equity ("TCE") ratio of 8.7%. We are confident that our high-quality deposit base, expanding market, credit-focused culture, and robust capital levels have positioned us to sustain momentum in 2024 and beyond." Fourth Quarter 2023 Highlights Loans totaled $2.6 billion at December 31, 2023 , up $12.5 million , or less than 1%, from September 30, 2023 . Deposits totaled $2.7 billion at December 31, 2023 , up $73.1 million , or 3%, from September 30, 2023 . Net interest income totaled $29.3 million , down $227,000 , or 1%, from the prior quarter. The net interest margin ("NIM") decreased 6 basis points from 3.75% for the third quarter of 2023 to 3.69% in the fourth quarter of 2023. Nonperforming assets totaled $10.4 million , or 0.31% of total assets at December 31, 2023 , down $1.9 million , or 16%, from September 30, 2023 primarily due to improved performance of certain loans, as well as nonperforming loans, and paydowns. The Company recorded a $665,000 provision to the allowance for loan losses, compared to a $351,000 provision in the prior quarter, primarily due to revisions to our loan prepayment estimates and loan growth. Loans Loans totaled $2.6 billion at December 31, 2023 , up $12.5 million , or less than 1%, from September 30, 2023 . The following table summarizes the changes in the Company's loan portfolio from September 30, 2023 to December 31, 2023 . December 31 , September 30 , Increase (Decrease) (dollars in thousands) 2023 2023 Amount Percent Real estate loans: One- to four-family first mortgage $ 433,401 $ 432,092 $ 1,309 — % Home equity loans and lines 68,977 69,350 (373) (1) Commercial real estate 1,192,691 1,178,111 14,580 1 Construction and land 340,724 342,711 (1,987) (1) Multi-family residential 107,263 106,411 852 1 Total real estate loans 2,143,056 2,128,675 14,381 1 Other loans: Commercial and industrial 405,659 407,189 (1,530) — Consumer 32,923 33,230 (307) (1) Total other loans 438,582 440,419 (1,837) — Total loans $ 2,581,638 $ 2,569,094 $ 12,544 — % The average loan yield was 6.08% for the fourth quarter of 2023, up 13 basis points from the third quarter of 2023. Commercial real estate was the primary driver for the loan growth during the fourth quarter of 2023. Commercial real estate loan growth for the current quarter was primarily in our Northshore and New Orleans markets. Credit Quality and Allowance for Loan Losses Nonperforming assets ("NPAs"), totaled $10.4 million , or 0.31% of total assets at December 31, 2023 , down $1.9 million , or 16%, from $12.3 million , or 0.37% of total assets, at September 30, 2023 . The Company recorded net loan charge-offs of $250,000 during the fourth quarter of 2023, compared to net loan recoveries of $132,000 for the third quarter of 2023. The Company made a $665,000 provision to the allowance for loan losses in the fourth quarter of 2023 primarily due to loan growth and downward revisions to our loan prepayment estimates. For the year ended December 31, 2023 , provisions to the allowance for loan losses totaled $2.3 million . At December 31, 2023 , the allowance for loan losses totaled $31.5 million , or 1.22% of total loans, compared to $31.1 million , or 1.21% of total loans, at September 30, 2023 . Changes in expected losses reflect various factors including the changing economic activity, potential mitigating effects of governmental stimulus, customer 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 December 31, 2023 and September 30, 2023 . December 31, 2023 (dollars in thousands) Pass SpecialMention 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 September 30, 2023 (dollars in thousands) Pass SpecialMention Substandard Total One- to four-family first mortgage $ 429,011 $ 870 $ 2,211 $ 432,092 Home equity loans and lines 69,225 — 125 69,350 Commercial real estate 1,162,095 330 15,686 1,178,111 Construction and land 330,512 5,388 6,811 342,711 Multi-family residential 102,907 — 3,504 106,411 Commercial and industrial 402,252 2,458 2,479 407,189 Consumer 33,000 — 230 33,230 Total $ 2,529,002 $ 9,046 $ 31,046 $ 2,569,094 Investment Securities The Company's investment securities portfolio totaled $435.0 million at December 31, 2023 , an increase of $6.9 million , or 2%, from September 30, 2023 . At December 31, 2023 , the Company had a net unrealized loss position on its investment securities of $43.4 million , compared to a net unrealized loss of $63.4 million at September 30, 2023 . The Company's investment securities portfolio had an effective duration of 4.2 years and 4.5 years at December 31, 2023 and September 30, 2023 , respectively. The following table summarizes the composition of the Company's investment securities portfolio at December 31, 2023 . (dollars in thousands) AmortizedCost Fair Value Available for sale: U.S. agency mortgage-backed $ 314,569 $ 283,853 Collateralized mortgage obligations 82,764 79,262 Municipal bonds 53,891 46,674 U.S. government agency 19,151 18,049 Corporate bonds 6,982 6,088 Total available for sale $ 477,357 $ 433,926 Held to maturity: Municipal bonds $ 1,065 $ 1,066 Total held to maturity $ 1,065 $ 1,066 Approximately 29% of the investment securities portfolio was pledged to secure public funds as of December 31, 2023 . As of December 31, 2023 and September 30, 2023 , the Company had $127.2 million and $127.9 million , respectively, of securities pledged to secure public deposits. Deposits Total deposits were $2.7 billion at December 31, 2023 , up $73.1 million , or 3%, from September 30, 2023 . Non-maturity deposits decreased $15.1 million , or 1% during the fourth quarter of 2023 to $2.0 billion . The following table summarizes the changes in the Company's deposits from September 30, 2023 to December 31, 2023 . December 31 , September 30 , Increase/(Decrease) (dollars in thousands) 2023 2023 Amount Percent Demand deposits $ 744,424 $ 785,448 $ (41,024) (5) % Savings 231,624 246,402 (14,778) (6) Money market 408,024 392,174 15,850 4 NOW 641,818 617,003 24,815 4 Certificates of deposit 644,734 556,457 88,277 16 Total deposits $ 2,670,624 $ 2,597,484 $ 73,140 3 % The average rate on interest-bearing deposits increased 40 basis points from 1.84% for the third quarter of 2023 to 2.24% for the fourth quarter of 2023. At December 31, 2023 , certificates of deposit maturing within the next 12 months totaled $544.5 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. December 31, 2023 September 30, 2023 Individuals 53 % 52 % Small businesses 38 39 Public funds 7 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 $748.6 million at December 31, 2023 and $755.5 million at September 30, 2023 . Public funds in excess of the FDIC insurance limits are fully collateralized. Net Interest Income The net interest margin ("NIM") decreased 6 basis points from 3.75% for the third quarter of 2023 to 3.69% for the fourth quarter of 2023 primarily due to an increase in the average cost of interest-bearing liabilities, which was partially offset with an increase in the average yield on loans. 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 6.08% for the fourth quarter of 2023, up 13 basis points from the third quarter of 2023, primarily reflecting increased market rates of interest coupled with loan growth during the period. Average other interest-earning assets were $57.5 million for the fourth quarter of 2023, up $3.5 million , or 6%, from the third quarter of 2023 primarily due to an increase in cash and cash equivalents. Loan accretion income from acquired loans totaled $584,000 for the fourth quarter of 2023, down $50,000 , or 8%, compared to the third quarter of 2023. The average rate paid on total interest-bearing deposits was 2.24% for the fourth quarter of 2023, up 40 basis points from the third quarter of 2023, due to the increased market rates of interest. 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, 2023 September 30, 2023 (dollars in thousands) AverageBalance Interest AverageYield/ Rate AverageBalance Interest AverageYield/ Rate Interest-earning assets: Loans receivable $ 2,572,400 $ 39,820 6.08 % $ 2,538,218 $ 38,490 5.95 % Investment securities (TE) 481,322 2,837 2.37 495,219 2,939 2.39 Other interest-earning assets 57,523 742 5.12 54,015 649 4.77 Total interest-earning assets $ 3,111,245 $ 43,399 5.49 % $ 3,087,452 $ 42,078 5.36 % Interest-bearing liabilities: Deposits: Savings, checking, and money market $ 1,273,550 $ 4,561 1.42 % $ 1,256,885 $ 3,791 1.20 % Certificates of deposit 591,205 5,975 4.01 511,754 4,390 3.40 Total interest-bearing deposits 1,864,755 10,536 2.24 1,768,639 8,181 1.84 Other borrowings 5,539 53 3.80 5,539 53 3.80 Subordinated debt 54,214 844 6.23 54,159 845 6.24 FHLB advances 212,412 2,684 4.96 273,087 3,490 5.01 Total interest-bearing liabilities $ 2,136,920 $ 14,117 2.62 % $ 2,101,424 $ 12,569 2.37 % Noninterest-bearing deposits $ 777,184 $ 799,534 Net interest spread (TE) 2.87 % 2.99 % Net interest margin (TE) 3.69 % 3.75 % Noninterest Income Noninterest income for the fourth quarter of 2023 totaled $3.5 million , down $921,000 , or 21%, from the third quarter of 2023. The decrease was related primarily to gains on sale of loans (down $641,000 of which $628,000 was related to a reduction in SBA loan sales) and bank card fees (down $257,000 ) for the fourth quarter of 2023 compared to the third quarter of 2023. Noninterest Expense Noninterest expense for the fourth quarter of 2023 totaled $20.6 million , down $734,000 , or 3%, compared to the third quarter of 2023. The decrease was primarily due to reductions in compensation and benefits (down $1.1 million ) and franchise and shares tax (down $411,000 ), which were partially offset by increases in other expenses (up $450,000 ), provision for credit losses on unfunded commitments (up $140,000 ) and marketing and advertising (up $121,000 ). Capital and Liquidity At December 31, 2023 , shareholders' equity totaled $367.4 million , up $22.1 million , or 6%, compared to $345.3 million at September 30, 2023 . The increase was primarily due to the decrease in accumulated other comprehensive loss on available for sale investment securities and the Company's earnings of $9.4 million during the fourth quarter of 2023, which were partially offset by shareholder's dividends and repurchases of shares of the Company's common stock. The market value of the Company's available for sale securities at December 31, 2023 increased $20.0 million , or 32%, during the fourth quarter of 2023. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 10.98% and 14.23%, respectively, at December 31, 2023 , compared to 10.71% and 13.73%, respectively, at September 30, 2023 . The following table summarizes the Company's primary and secondary sources of liquidity which were available at December 31, 2023 . (dollars in thousands) December 31, 2023 Cash and cash equivalents $ 75,831 Unencumbered investment securities, amortized cost 70,467 FHLB advance availability 1,020,494 Amounts available from unsecured lines of credit 55,000 Federal Reserve bank term funding program ** 103,368 Federal Reserve discount window availability 500 Total primary and secondary sources of available liquidity $ 1,325,660 ** $59.4 million of securities were delivered to the Federal Reserve in January. The Company borrowed $135.0 million on the Federal Reserve program in January 2024 to pay down advances at FHLB, which will increase availability at FHLB. 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 February 16, 2024 , to shareholders of record as of February 5, 2024 . The Company repurchased 16,534 shares of its common stock during the fourth quarter of 2023 at an average price per share of $32.68 under the Company's 2020 Repurchase Plan. At December 31, 2023 , an additional 436,446 shares remain eligible for purchase under the 2021 and 2023 Repurchase Plans. The book value per share and tangible book value per share of the Company's common stock was $45.04 and $34.45 , respectively, at December 31, 2023 . Conference Call Executive management will host a conference call to discuss fourth quarter 2023 results on Tuesday, January 23, 2024 at 10:30 a.m. CDT . Analysts, investors and interested parties may attend the conference call by dialing toll free 1.848.488.9160 (US Local/International) or 1.877.550.1858 (US Toll Free). The investor presentation can be accessed the day of the presentation on the Home Bancorp, Inc. website at https://home24bank.investorroom.com . A replay of the conference call and a transcript of the call will be posted to the Investor Relations page of the Company's website, https://home24bank.investorroom.com . Non-GAAP Reconciliation This news release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). The Company's management uses this non-GAAP financial information in its analysis of the Company's performance. In this news release, information is included which excludes intangible assets. Management believes the presentation of this non-GAAP financial information provides useful information that is helpful to a full understanding of the Company's financial position and operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP financial information presented by other companies. A reconciliation of non-GAAP information included herein to GAAP is presented below. For the Three Months Ended (dollars in thousands, except per share data) December 31, 2023 September 30, 2023 December 31, 2022 Reported net income $ 9,385 $ 9,754 $ 10,776 Add: Core deposit intangible amortization, net tax 298 307 350 Non-GAAP tangible income $ 9,683 $ 10,061 $ 11,126 Total assets $ 3,320,122 $ 3,317,729 $ 3,228,280 Less: Intangible assets 86,372 86,749 87,973 Non-GAAP tangible assets $ 3,233,750 $ 3,230,980 $ 3,140,307 Total shareholders' equity $ 367,444 $ 345,332 $ 329,954 Less: Intangible assets 86,372 86,749 87,973 Non-GAAP tangible shareholders' equity $ 281,072 $ 258,583 $ 241,981 Return on average equity 10.61 % 11.04 % 13.23 % Add: Average intangible assets 3.92 4.11 5.52 Non-GAAP return on average tangible common equity 14.53 % 15.15 % 18.75 % Common equity ratio 11.07 % 10.41 % 10.22 % Less: Intangible assets 2.38 2.41 2.51 Non-GAAP tangible common equity ratio 8.69 % 8.00 % 7.71 % Book value per share $ 45.04 $ 42.30 $ 39.82 Less: Intangible assets 10.59 10.63 10.62 Non-GAAP tangible book value per share $ 34.45 $ 31.67 $ 29.20 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, 2022 , 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, 2023 September 30, 2023 %Change December 31, 2022 Assets Cash and cash equivalents $ 75,831 $ 84,520 (10) % $ 87,401 Interest-bearing deposits in banks 99 99 — 349 Investment securities available for sale, at fair value 433,926 427,019 2 486,518 Investment securities held to maturity 1,065 1,065 — 1,075 Mortgage loans held for sale 361 467 (23) 98 Loans, net of unearned income 2,581,638 2,569,094 — 2,430,750 Allowance for loan losses (31,537) (31,123) (1) (29,299) Total loans, net of allowance for loan losses 2,550,101 2,537,971 — 2,401,451 Office properties and equipment, net 41,980 42,402 (1) 43,560 Cash surrender value of bank-owned life insurance 47,321 47,054 1 46,276 Goodwill and core deposit intangibles 86,372 86,749 — 87,973 Accrued interest receivable and other assets 83,066 90,383 (8) 73,579 Total Assets $ 3,320,122 $ 3,317,729 — $ 3,228,280 Liabilities Deposits $ 2,670,624 $ 2,597,484 3 % $ 2,633,181 Other Borrowings 5,539 5,539 — 5,539 Subordinated debt, net of issuance cost 54,241 54,187 — 54,013 Federal Home Loan Bank advances 192,713 283,826 (32) 176,213 Accrued interest payable and other liabilities 29,561 31,361 (6) 29,380 Total Liabilities 2,952,678 2,972,397 (1) 2,898,326 Shareholders' Equity Common stock 81 81 — % 83 Additional paid-in capital 165,823 165,149 — 164,942 Common stock acquired by benefit plans (1,697) (1,787) 5 (2,060) Retained earnings 234,619 227,649 3 206,296 Accumulated other comprehensive loss (31,382) (45,760) 31 (39,307) Total Shareholders' Equity 367,444 345,332 6 329,954 Total Liabilities and Shareholders' Equity $ 3,320,122 $ 3,317,729 — $ 3,228,280 HOME BANCORP, INC. AND SUBSIDIARY CONDENSED STATEMENTS OF INCOME (Unaudited) For the Three Months Ended (dollars in thousands, except per share data) December 31, 2023 September 30, 2023 %Change December 31, 2022 %Change Interest Income Loans, including fees $ 39,820 $ 38,490 3 % $ 32,826 21 % Investment securities 2,837 2,939 (3) 3,214 (12) Other investments and deposits 742 649 14 555 34 Total interest income 43,399 42,078 3 36,595 19 Interest Expense Deposits 10,536 8,181 29 % 1,949 441 % Other borrowings 53 53 — 53 — Subordinated debt expense 844 845 — 851 (1) Federal Home Loan Bank advances 2,684 3,490 (23) 456 489 Total interest expense 14,117 12,569 12 3,309 327 Net interest income 29,282 29,509 (1) 33,286 (12) Provision for loan losses 665 351 89 1,987 (67) Net interest income after provision for loan losses 28,617 29,158 (2) 31,299 (9) Noninterest Income Service fees and charges 1,235 1,277 (3) % 1,198 3 % Bank card fees 1,646 1,903 (14) 1,566 5 Gain on sale of loans, net 46 687 (93) 22 109 Income from bank-owned life insurance 267 265 1 257 4 Loss on sale of assets, net (7) — — 9 (178) Other income 291 267 9 287 1 Total noninterest income 3,478 4,399 (21) 3,339 4 Noninterest Expense Compensation and benefits 11,401 12,492 (9) % 12,880 (11) % Occupancy 2,467 2,410 2 2,261 9 Marketing and advertising 759 638 19 550 38 Data processing and communication 2,423 2,496 (3) 2,295 6 Professional fees 465 402 16 392 19 Forms, printing and supplies 195 195 — 182 7 Franchise and shares tax 131 542 (76) 693 (81) Regulatory fees 589 511 15 511 15 Foreclosed assets, net 43 99 (57) 30 43 Amortization of acquisition intangible 377 389 (3) 443 (15) Provision for credit losses on unfunded lending commitments 140 — — (170) 182 Other expenses 1,614 1,164 39 1,114 45 Total noninterest expense 20,604 21,338 (3) 21,181 (3) Income before income tax expense 11,491 12,219 (6) 13,457 (15) Income tax expense 2,106 2,465 (15) 2,681 (21) Net income $ 9,385 $ 9,754 (4) $ 10,776 (13) Earnings per share - basic $ 1.18 $ 1.22 (3) % $ 1.33 (11) % Earnings per share - diluted $ 1.17 $ 1.22 (4) $ 1.32 (11) Cash dividends declared per common share $ 0.25 $ 0.25 — % $ 0.24 4 % HOME BANCORP, INC. AND SUBSIDIARY SUMMARY FINANCIAL INFORMATION (Unaudited) For the Three Months Ended (dollars in thousands, except per share data) December 31, 2023 September 30, 2023 %Change December 31, 2022 %Change EARNINGS DATA Total interest income $ 43,399 $ 42,078 3 % $ 36,595 19 % Total interest expense 14,117 12,569 12 3,309 327 Net interest income 29,282 29,509 (1) 33,286 (12) Provision for loan losses 665 351 89 1,987 (67) Total noninterest income 3,478 4,399 (21) 3,339 4 Total noninterest expense 20,604 21,338 (3) 21,181 (3) Income tax expense 2,106 2,465 (15) 2,681 (21) Net income $ 9,385 $ 9,754 (4) $ 10,776 (13) AVERAGE BALANCE SHEET DATA Total assets $ 3,299,069 $ 3,281,093 1 % $ 3,173,676 4 % Total interest-earning assets 3,111,245 3,087,452 1 2,986,266 4 Total loans 2,572,400 2,538,218 1 2,374,065 8 PPP loans 5,643 5,869 (4) 6,883 (18) Total interest-bearing deposits 1,864,755 1,768,639 5 1,769,966 5 Total interest-bearing liabilities 2,136,920 2,101,424 2 1,884,109 13 Total deposits 2,641,939 2,568,173 3 2,707,823 (2) Total shareholders' equity 350,898 350,436 — 323,102 9 PER SHARE DATA Earnings per share - basic $ 1.18 $ 1.22 (3) % $ 1.33 (11) % Earnings per share - diluted 1.17 1.22 (4) 1.32 (11) Book value at period end 45.04 42.30 6 39.82 13 Tangible book value at period end 34.45 31.67 9 29.20 18 Shares outstanding at period end 8,158,281 8,163,655 — 8,286,084 (2) Weighted average shares outstanding Basic 7,978,160 8,006,226 — % 8,070,734 (1) % Diluted 8,008,362 8,038,606 — 8,119,481 (1) SELECTED RATIOS (1) Return on average assets 1.13 % 1.18 % (4) % 1.35 % (16) % Return on average equity 10.61 11.04 (4) 13.23 (20) Common equity ratio 11.07 10.41 6 10.22 8 Efficiency ratio (2) 62.89 62.93 — 57.83 9 Average equity to average assets 10.64 10.68 — 10.18 5 Tier 1 leverage capital ratio (3) 10.98 10.71 3 10.43 5 Total risk-based capital ratio (3) 14.23 13.73 4 13.63 4 Net interest margin (4) 3.69 3.75 (2) 4.38 (16) SELECTED NON-GAAP RATIOS (1) Tangible common equity ratio (5) 8.69 % 8.00 % 9 % 7.71 % 13 % Return on average tangible common equity (6) 14.53 15.15 (4) 18.75 (23) (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, 2023 September 30, 2023 December 31, 2022 (dollars in thousands) Acquired Originated Total Acquired Originated Total Acquired Originated Total CREDIT QUALITY (1) Nonaccrual loans (2) $ 3,791 $ 5,023 $ 8,814 $ 3,905 $ 8,001 $ 11,906 $ 6,177 $ 4,336 $ 10,513 Accruing loans past due 90 days and over — — — — 43 43 — 2 2 Total nonperforming loans 3,791 5,023 8,814 3,905 8,044 11,949 6,177 4,338 10,515 Foreclosed assets and ORE 80 1,495 1,575 141 221 362 310 151 461 Total nonperforming assets 3,871 6,518 10,389 4,046 8,265 12,311 6,487 4,489 10,976 Performing troubled debt restructurings — — — — — — 1,605 4,600 6,205 Total nonperforming assets and troubled debt restructurings $ 3,871 $ 6,518 $ 10,389 $ 4,046 $ 8,265 $ 12,311 $ 8,092 $ 9,089 $ 17,181 Nonperforming assets to total assets 0.31 % 0.37 % 0.34 % Nonperforming loans to total assets 0.27 0.36 0.33 Nonperforming loans to total loans 0.34 0.47 0.43 (1) 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. (2) Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $3.1 million at December 31, 2022 . Acquired restructured loans placed on nonaccrual totaled $3.7 million at December 31, 2022 . With the adoption of ASU 2022-02, effective January 1, 2023 , TDR accounting has been eliminated. HOME BANCORP, INC. AND SUBSIDIARY SUMMARY CREDIT QUALITY INFORMATION - CONTINUED (Unaudited) December 31, 2023 September 30, 2023 December 31, 2022 CollectivelyEvaluated IndividuallyEvaluated Total CollectivelyEvaluated IndividuallyEvaluated Total CollectivelyEvaluated IndividuallyEvaluated Total ALLOWANCE FOR CREDIT LOSSES One- to four-family first mortgage $ 3,255 $ — $ 3,255 $ 3,320 $ — $ 3,320 $ 2,883 $ — $ 2,883 Home equity loans and lines 688 — 688 742 — 742 624 — 624 Commercial real estate 14,604 201 14,805 14,185 230 14,415 13,264 550 13,814 Construction and land 5,292 123 5,415 5,123 — 5,123 4,680 — 4,680 Multi-family residential 474 — 474 523 — 523 572 — 572 Commercial and industrial 6,071 95 6,166 6,161 105 6,266 5,853 171 6,024 Consumer 734 — 734 734 — 734 702 — 702 Total allowance for loan losses $ 31,118 $ 419 $ 31,537 $ 30,788 $ 335 $ 31,123 $ 28,578 $ 721 $ 29,299 Unfunded lending commitments(3) 2,594 — 2,594 2,454 — 2,454 2,093 — 2,263 Total allowance for credit losses $ 33,712 $ 419 $ 34,131 $ 33,242 $ 335 $ 33,577 $ 30,671 $ 721 $ 2,093 Allowance for loan losses to nonperforming assets 303.56 % 252.81 % 266.94 % Allowance for loan losses to nonperforming loans 357.81 % 260.47 % 278.64 % Allowance for loan losses to total loans 1.22 % 1.21 % 1.21 % Allowance for credit losses to total loans 1.32 % 1.31 % 1.29 % Year-to-date loan charge-offs $ 471 $ 148 $ 1,398 Year-to-date loan recoveries 368 296 704 Year-to-date net loan (charge-offs) recoveries $ (103) $ 148 $ (694) Annualized YTD net loan (charge-offs) recoveries to average loans — % 0.01 % 0.03 % (3) 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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