Home Bancorp, Inc. Announces 2020 Second Quarter Results And Declares Quarterly Dividend

About this update from Home Bancorp, Inc.

LAFAYETTE, La. , July 28, 2020 /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 second quarter of 2020. For the quarter, the Company reported net income of $2.5 million , or $0.29 per diluted common share ("diluted EPS"), compared to $1.9 million , or $0.21 diluted EPS, for the first quarter of 2020. "While the long-term impact of COVID-19's effect on our economy remains tremendously difficult to estimate," said John W. Bordelon , Chairman, President and Chief Executive Officer of the Company and the Bank, "I've admired how our customers have managed the short-term challenges they've faced. They have adjusted their operations in countless ways to ensure they continue to serve their clients as best they can. That said, the challenges they face are significant as the virus spreads and the economy continues to struggle." "Just as the businesses we bank have stepped up to serve their clients, our bankers have done a wonderful job stepping up for our customers," continued Bordelon. "Over the past several months, our employees have been reminded time and time again of the critical role we play in our communities. Despite the uncertain road before us, the spirit within our company has never been higher. We will rise to meet the challenges ahead. We will serve one another, our customers and communities like never before." COVID-19 Response While banking operations have not been restrained by state and local government COVID-19 restrictions, we have adapted to protect our employees and customers by working remotely as much as possible, enhancing cleaning procedures, and enacting several other measures to reduce the risk of transmission of the virus. The Company has been active in providing Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans. Through July 24, 2020 , we have funded or are currently in the process of funding approximately 2,970 loans totaling $260.2 million under the PPP. At June 30, 2020 , the total recorded net investment in PPP loans was $249.6 million . 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 first quarter Form 10-Q (as of May 8, 2020 ), the level of deferrals totaled $533.0 million , or 27% of total loans. As of July 24, 2020 , the level of deferrals has decreased to $357.2 million , or 18% of total loans. Second Quarter 2020 Highlights Loans grew by $226.8 million on a linked-quarter basis due primarily to PPP loans; The provisions for loan losses and unfunded lending commitments totaled $7.0 million in the aggregate during the second quarter, reflecting our assessment of the change in expected losses due primarily to the economic impact of the COVID-19 pandemic; The allowance for loan losses totaled $33.8 million , or 1.72% of total loans, at June 30, 2020 . The allowance for credit losses ("ACL"), which includes the allowance for unfunded lending commitments, totaled $37.5 million , or 1.91% of total loans at June 30, 2020 . Excluding PPP loans, the ratio of allowance for loan losses to total loans and the ratio for allowance for credit losses was 1.97% and 2.18%, respectively; Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.11% and 14.83% at June 30, 2020 , compared to 10.84% and 14.88% at March 31, 2020 ; The net interest margin was 3.75% for the three months ended June 30, 2020 , down 43 basis points from the first quarter of 2020. The net interest margin for the second quarter includes the impact of PPP loans and higher level of cash and cash equivalents during the quarter; and The average yield on total interest-bearing deposits was 0.78% in the second quarter of 2020, down 29 basis points from the first quarter of 2020. Loans Total loans grew by $226.8 million , or 13%, from March 31, 2020 to June 30, 2020 , due to PPP loans. Excluding PPP loans, loans decreased by $22.8 million , or 1%, during the quarter. The following table summarizes the changes in the Company's loan portfolio from March 31, 2020 to June 30, 2020 . June 30 , March 31 , Increase/(Decrease) (dollars in thousands) 2020 2020(1) Amount Percent Real estate loans: One- to four-family first mortgage $ 431,999 $ 447,718 $ (15,719) (4) % Home equity loans and lines 72,956 78,011 (5,055) (6) Commercial real estate 689,942 691,358 (1,416) — Construction and land 203,592 205,542 (1,950) (1) Multi-family residential 81,635 74,982 6,653 9 Total real estate loans 1,480,124 1,497,611 (17,487) (1) Other loans: Commercial and industrial 444,728 198,261 246,467 124 Consumer 41,073 43,270 (2,197) (5) Total other loans 485,801 241,531 244,270 101 Total loans $ 1,965,925 $ 1,739,142 $ 226,783 13 % (1) Certain reclassifications have been made to prior period balances to conform to the current period presentation. At June 30, 2020 , the total recorded investment in PPP loans was $249.6 million . This amount is net of $8.5 million in deferred lender fees, which will be amortized into interest income over the life of the loans (on a contractual basis, approximately 2 years on average). Credit Quality and Allowance for Credit Losses Nonperforming assets ("NPAs") totaled $28.0 million , or 1.06% of total assets, and $29.5 million , or 1.31% of total assets, at June 30, 2020 and March 31, 2020 , respectively. The Company recorded net loan charge-offs of $1.1 million during the second quarter of 2020, compared to net loan charge-offs of $268,000 for the first quarter of 2020. The increase in net loan charge-offs during the second quarter was primarily due to $658,000 in charge-offs related to an acquired farm loan relationship and $385,000 in charge-offs related to an acquired energy loan relationship. Both relationships were classified as substandard prior to the COVID-19 crisis. Beginning in March 2020 , in response to the economic challenges brought on by the COVID-19 crisis, we began offering our borrowers payment relief options primarily in the form of deferrals of principal and/or interest payments for an initial term of up to three months. When we last reported the level of such deferrals in our first quarter Form 10-Q (as of May 8 ), the level of deferrals totaled $533.0 million , or 27% of total loans. As of July 24, 2020 the level of deferrals has decreased to $357.2 million , or 18% of total loans. The provision for loan losses for the second quarter of 2020 totaled $6.5 million , up $214,000 from the first quarter of 2020. The second quarter provision for loan losses reflects our assessment of the change in expected losses due primarily to the current and anticipated economic impact of the COVID-19 pandemic. 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. The following table provides a summary of the loan portfolio at June 30, 2020 , stratified by certain selected industry segments, and related reserve builds during the six months ended June 30, 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. Total Loans PPP Loans Reserve Builds(1) for the Quarters Ended Total ACL ACL to Total Loans ACL to Total Non-PPPLoans (dollars in thousands) June 30, 2020 June 30, 2020 March 31, 2020 June 30, 2020 June 30, 2020 June 30, 2020 June 30, 2020 Retail CRE $ 191,761 $ — $ 744 $ 4,380 $ 7,108 3.71 % 3.71 % Hotels and short-term rentals 90,137 3,979 1,885 1,517 4,313 4.78 5.01 Restaurants and bars 95,352 30,865 545 1,382 2,601 2.73 4.03 Energy 29,225 — 1,204 (101) 1,614 5.52 5.52 Credit cards 3,831 — 327 (32) 383 10.00 10.00 Other loans 1,555,619 214,779 1,284 (1,813) 17,804 1.14 1.33 Total $ 1,965,925 $ 249,623 $ 5,989 $ 5,333 $ 33,823 1.72 % 1.97 % Unfunded lending commitments(2) — — 729 543 3,637 — — Total $ 1,965,925 $ 249,623 $ 6,718 $ 5,876 $ 37,460 1.91 % 2.18 % (1) "Reserve build" represents the amount by which the provisions for credit losses on loans and unfunded lending commitments exceed net loan charge-offs. For the quarters ended June 30, 2020 and March 31, 2020 , the provision for credit losses totaled $7.0 million , and net loan charge-offs were $1.1 million and $268,000 , respectively. (2) At June 30, 2020 , the allowance of $3.6 million related to unfunded lending commitments of $336.3 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 June 30, 2020 . (dollars in thousands) RecordedInvestment Available-for-sale U.S. agency mortgage-backed $ 115,743 Collateralized mortgage obligations 117,643 Municipal bonds 15,099 U.S. government agency 6,532 Corporate bonds 1,905 Total available-for-sale 256,922 Held to Maturity Municipal Bonds 4,333 Total investment securities $ 261,255 Securities available-for-sale ("AFS") made up 98% of total investment securities and net unrealized gains on AFS securities totaled $6.7 million at June 30, 2020 . Deposits Total deposits increased $409.2 million , or 22.0%, from March 31, 2020 to $2.3 billion at June 30, 2020 . Customers who received PPP loans increased their deposit balances by a net of $210.2 million during the second quarter of 2020. The following table summarizes the changes in the Company's deposits from March 31, 2020 to June 30, 2020 . June 30 , March 31 , Increase/(Decrease) (dollars in thousands) 2020 2020 Amount Percent Demand deposits $ 647,789 $ 455,512 $ 192,277 42 % Savings 237,168 206,597 30,571 15 Money market 305,668 266,519 39,149 15 NOW 688,336 536,643 151,693 28 Certificates of deposit 387,743 392,230 (4,487) (1) Total deposits $ 2,266,704 $ 1,857,501 $ 409,203 22 % The average rate on interest-bearing deposits decreased 29 basis points from 1.07% for the first quarter of 2020 to 0.78% for the second quarter of 2020. At June 30, 2020 , certificates of deposit maturing within the next 12 months totaled $291.0 million . Net Interest Income The net interest margin ("NIM") decreased 43 basis points from 4.18% for the first quarter of 2020 to 3.75% for the second quarter of 2020 primarily due to a decrease in the yield on interest-earning assets, which was down 66 basis points from the first quarter of 2020. Outstanding PPP loans negatively impacted the average loan yield by 23 basis points and the NIM by 7 basis points during the second quarter. During the second quarter of 2020, $882,000 of PPP lender fees were recognized in loan interest income. The remaining balance of $8.5 million in deferred lender fees will be amortized into interest income over the life of the PPP loans. A $170.2 million , or 265%, increase in cash and cash equivalents at June 30, 2020 compared to March 31, 2020 , resulted in higher average other interest-earning assets due primarily to the growth in deposits. The increase in cash and cash equivalents negatively impacted the average yield on total interest-earning assets and the NIM by 30 and 26 basis points, respectively. Loan accretion income from acquired loans totaled $746,000 during the second quarter of 2020, down $64,000 from $810,000 for the first quarter of 2020. At June 30, 2020 , variable rate loans totaled $453.6 million , or 23% of total loans. 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 June 30, 2020 March 31, 2020 (dollars in thousands) AverageBalance Interest AverageYield/ Rate AverageBalance Interest AverageYield/ Rate Interest-earning assets: Loans receivable $ 1,934,627 $ 24,371 5.00 % $ 1,735,224 $ 23,699 5.43 % Investment securities (TE) 256,069 1,182 1.88 263,040 1,412 2.19 Other interest-earning assets 186,127 117 0.25 28,002 138 1.99 Total interest-earning assets $ 2,376,823 $ 25,670 4.30 % $ 2,026,266 $ 25,249 4.96 % Interest-bearing liabilities: Deposits: Savings, checking, and money market $ 1,157,239 $ 1,347 0.47 % $ 989,028 $ 1,822 0.74 % Certificates of deposit 391,380 1,665 1.71 392,670 1,845 1.89 Total interest-bearing deposits 1,548,619 3,012 0.78 1,381,698 3,667 1.07 Other borrowings 5,539 53 3.86 5,539 53 3.86 FHLB advances 70,460 188 1.07 45,729 206 1.80 Total interest-bearing liabilities $ 1,624,618 $ 3,253 0.80 % $ 1,432,966 $ 3,926 1.10 % Net interest spread (TE) 3.50 % 3.86 % Net interest margin (TE) 3.75 % 4.18 % Noninterest Income Noninterest income for the second quarter of 2020 totaled $3.1 million , down $255,000 , or 8%, from the first quarter of 2020 due primarily to a decrease in service fees and charges (down $522,000 ), which was partially offset by an increase in the gain on the sale of loans (up $345,000 ). Service fees and charges decreased primarily due to a decline in income from overdraft fees on deposit accounts. Noninterest Expense Noninterest expense for the second quarter of 2020 totaled $16.0 million , down $151,000 , or 1%, from the first quarter of 2020. The decrease in noninterest expense was primarily due to decreases in the provision for credit losses on unfunded lending commitments (down $187,000 ) and marketing and advertising expenses (down $138,000 ) for the second quarter of 2020, partially offset by an increase in regulatory fees (up $246,000 ) as FDIC assessment credits were exhausted during the first quarter. Capital and Liquidity The Company's tangible common equity ratio was 9.54% and 11.32% at June 30, 2020 and March 31, 2020 , respectively. At June 30, 2020 , the Bank's preliminary Tier 1 leverage capital ratio was 9.11%, down 173 basis points from March 31, 2020 , and preliminary total risk-based capital ratio was 14.83%, down five basis points from March 31, 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. June 30 , (dollars in thousands) 2020 Cash and cash equivalents $ 234,255 Unpledged investment securities, amortized cost 113,386 FHLB advance availability 729,531 Unsecured lines of credit 55,000 Federal Reserve discount window availability 500 Total primary and secondary liquidity $ 1,132,672 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 August 21, 2020 , to shareholders of record as of August 10, 2020 . The Company repurchased 115,327 shares of its common stock during the second quarter of 2020 at an average price per share of $24.69 , or an aggregate of $2.8 million , under the Company's 2019 Repurchase Plan. An additional 82,916 shares remain eligible for purchase under the 2019 Repurchase Plan. The book value per share and tangible book value per share of the Company's common stock was $34.50 and $27.39 , respectively, at June 30, 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) June 30, 2020 March 31, 2020 June 30, 2019 Reported net income $ 2,493 $ 1,905 $ 6,580 Add: Core deposit intangible amortization, net tax 270 279 314 Non-GAAP tangible income $ 2,763 $ 2,184 $ 6,894 Total assets $ 2,636,896 $ 2,248,601 $ 2,220,386 Less: Intangible assets 63,777 64,119 65,247 Non-GAAP tangible assets $ 2,573,119 $ 2,184,482 $ 2,155,139 Total shareholders' equity $ 309,326 $ 311,497 $ 313,494 Less: Intangible assets 63,777 64,119 65,247 Non-GAAP tangible shareholders' equity $ 245,549 $ 247,378 $ 248,247 Total loans $ 1,965,925 $ 1,739,142 $ 1,692,948 Less: PPP loans 249,623 — — Total loans excluding PPP loans $ 1,716,302 $ 1,739,142 $ 1,692,948 Allowance for loan losses to total loans 1.72 % 1.64 % 1.02 % Less: PPP loans 0.25 — — Non-GAAP allowance for loan losses to total loans 1.97 % 1.64 % 1.02 % Return on average equity 3.20 % 2.43 % 8.48 % Add: Average intangible assets 1.25 1.07 2.77 Non-GAAP return on average tangible common equity 4.45 % 3.50 % 11.25 % Common equity ratio 11.73 % 13.85 % 14.12 % Less: Intangible assets 2.19 2.53 2.60 Non-GAAP tangible common equity ratio 9.54 % 11.32 % 11.52 % Book value per share $ 34.50 $ 34.35 $ 33.20 Less: Intangible assets 7.11 7.07 6.91 Non-GAAP tangible book value per share $ 27.39 $ 27.28 $ 26.29 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) June 30, 2020 March 31 ,2020 %Change June 30, 2019 Assets Cash and cash equivalents $ 234,255 $ 64,102 265 % $ 71,325 Interest-bearing deposits in banks 449 449 — 694 Investment securities available for sale, at fair value 256,922 265,646 (3) 261,626 Investment securities held to maturity 4,333 6,607 (34) 8,163 Mortgage loans held for sale 13,359 9,753 37 4,501 Loans, net of unearned income 1,965,925 1,739,142 13 1,692,948 Allowance for loan losses (33,823) (28,490) 19 (17,239) Total loans, net of allowance for loan losses 1,932,102 1,710,652 13 1,675,709 Office properties and equipment, net 45,967 46,541 (1) 47,698 Cash surrender value of bank-owned life insurance 39,953 39,725 1 39,927 Goodwill and core deposit intangibles 63,777 64,119 (1) 65,247 Accrued interest receivable and other assets 45,779 41,007 12 45,496 Total Assets $ 2,636,896 $ 2,248,601 17 $ 2,220,386 Liabilities Deposits $ 2,266,704 $ 1,857,501 22 % $ 1,829,169 Other Borrowings 5,539 5,539 — 5,539 Federal Home Loan Bank advances 35,041 54,319 (35) 54,615 Accrued interest payable and other liabilities 20,286 19,745 3 17,569 Total Liabilities 2,327,570 1,937,104 20 1,906,892 Shareholders' Equity Common stock 90 91 (1) % 94 Additional paid-in capital 166,494 167,249 — 169,233 Common stock acquired by benefit plans (2,970) (3,063) 3 (3,351) Retained earnings 140,582 141,798 (1) 146,348 Accumulated other comprehensive income 5,130 5,422 (5) 1,170 Total Shareholders' Equity 309,326 311,497 (1) 313,494 Total Liabilities and Shareholders' Equity $ 2,636,896 $ 2,248,601 17 $ 2,220,386 HOMEBANCORP, INC. AND SUBSIDIARY CONDENSED STATEMENTS OF INCOME (Unaudited) For the Three Months Ended (dollars in thousands, except per share data) June 30, 2020 March 31, 2020 %Change June 30, 2019 %Change Interest Income Loans, including fees $ 24,371 $ 23,699 3 % $ 23,812 2 % Investment securities 1,182 1,412 (16) 1,729 (32) Other investments and deposits 117 138 (15) 380 (69) Total interest income 25,670 25,249 2 25,921 (1) Interest Expense Deposits 3,012 3,667 (18) % 3,735 (19) % Other borrowings 53 53 — 53 — Federal Home Loan Bank advances 188 206 (9) 258 (27) Total interest expense 3,253 3,926 (17) 4,046 (20) Net interest income 22,417 21,323 5 21,875 2 Provision for loan losses 6,471 6,257 3 765 746 Net interest income after provision for loan losses 15,946 15,066 6 21,110 (24) Noninterest Income Service fees and charges 942 1,464 (36) % 1,413 (33) % Bank card fees 1,127 1,137 (1) 1,212 (7) Gain on sale of loans, net 642 297 116 248 159 Income from bank-owned life insurance 228 259 (12) 202 13 (Loss) gain on sale of assets, net (13) 2 (750) (327) 96 Other income 177 199 (11) 229 (23) Total noninterest income 3,103 3,358 (8) 2,977 4 Noninterest Expense Compensation and benefits 9,362 9,416 (1) % 9,613 (3) % Occupancy 1,653 1,736 (5) 2,008 (18) Marketing and advertising 160 298 (46) 308 (48) Data processing and communication 1,760 1,819 (3) 1,596 10 Professional fees 255 213 20 218 17 Forms, printing and supplies 160 171 (6) 181 (12) Franchise and shares tax 389 389 — 398 (2) Regulatory fees 362 116 212 283 28 Foreclosed assets, net 145 17 753 40 263 Amortization of acquisition intangible 342 353 (3) 398 (14) Provision for credit losses on unfunded lending commitments 542 729 (26) — — Other expenses 865 889 (3) 909 (5) Total noninterest expense 15,995 16,146 (1) 15,952 — Income before income tax expense 3,054 2,278 34 8,135 (62) Income tax expense 561 373 50 1,555 (64) Net income $ 2,493 $ 1,905 31 $ 6,580 (62) Earnings per share - basic $ 0.29 $ 0.21 38 % $ 0.72 (60) % Earnings per share - diluted $ 0.29 $ 0.21 38 $ 0.71 (59) Cash dividends declared per common share $ 0.22 $ 0.22 — % $ 0.21 5 % HOME BANCORP, INC. AND SUBSIDIARY SUMMARY FINANCIAL INFORMATION (Unaudited) For the Three Months Ended (dollars in thousands, except per share data) June 30, 2020 March 31, 2020 %Change June 30, 2019 %Change EARNINGS DATA Total interest income $ 25,670 $ 25,249 2 % $ 25,921 (1) % Total interest expense 3,253 3,926 (17) 4,046 (20) Net interest income 22,417 21,323 5 21,875 2 Provision for loan losses 6,471 6,257 3 765 746 Total noninterest income 3,103 3,358 (8) 2,977 4 Total noninterest expense 15,995 16,146 (1) 15,952 — Income tax expense 561 373 50 1,555 (64) Net income $ 2,493 $ 1,905 31 $ 6,580 (62) AVERAGE BALANCE SHEET DATA Total assets $ 2,571,004 $ 2,219,114 16 % $ 2,190,604 17 % Total interest-earning assets 2,376,823 2,026,266 17 1,993,067 19 Total loans 1,934,627 1,735,224 11 1,665,841 16 Total interest-bearing deposits 1,548,619 1,381,698 12 1,368,694 13 Total interest-bearing liabilities 1,624,618 1,432,966 13 1,431,415 13 Total deposits 2,155,963 1,833,848 18 1,810,377 19 Total shareholders' equity 313,650 315,607 (1) 311,308 1 SELECTED RATIOS (1) Return on average assets 0.39 % 0.35 % 11 % 1.20 % (68) % Return on average equity 3.20 2.43 32 8.48 (62) Common equity ratio 11.73 13.85 (15) 14.12 (17) Efficiency ratio (2) 62.67 65.42 (4) 64.19 (2) Average equity to average assets 12.20 14.22 (14) 14.21 (14) Tier 1 leverage capital ratio (3) 9.11 10.84 (16) 11.15 (18) Total risk-based capital ratio (3) 14.83 14.88 — 15.33 (3) Net interest margin (4) 3.75 4.18 (10) 4.36 (14) SELECTED NON-GAAP RATIOS (1) Tangible common equity ratio (5) 9.54 % 11.32 % (16) % 11.52 % (17) % Return on average tangible common equity (6) 4.45 3.50 27 11.25 (60) PER SHARE DATA Earnings per share - basic $ 0.29 $ 0.21 38 % $ 0.72 (60) % Earnings per share - diluted 0.29 0.21 38 0.71 (59) Book value at period end 34.50 34.35 — 33.20 4 Tangible book value at period end 27.39 27.28 — 26.29 4 Shares outstanding at period end 8,966,101 9,067,920 (1) 9,441,800 (5) Weighted average shares outstanding Basic 8,701,730 8,883,261 (2) % 9,155,074 (5) % Diluted 8,730,437 8,927,448 (2) 9,207,880 (5) (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) Estimated capital ratios are end of period ratios for the Bank only. (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) June 30, 2020 March 31, 2020 June 30, 2019 (dollars in thousands) Originated Acquired Total Originated Acquired Total Originated Acquired Total CREDIT QUALITY (1) (2) Nonaccrual loans(3) $ 14,126 $ 10,966 $ 25,092 $ 15,235 $ 11,686 $ 26,921 $ 15,027 $ 10,945 $ 25,972 Accruing loans past due 90 days and over — 906 906 — — — — — — Total nonperforming loans 14,126 11,872 25,998 15,235 11,686 26,921 15,027 10,945 25,972 Foreclosed assets and ORE 1,060 914 1,974 978 1,628 2,606 87 1,893 1,980 Total nonperforming assets 15,186 12,786 27,972 16,213 13,314 29,527 15,114 12,838 27,952 Performing troubled debt restructurings 917 457 1,374 989 695 1,684 1,080 217 1,297 Total nonperforming assets and troubled debt restructurings $ 16,103 $ 13,243 $ 29,346 $ 17,202 $ 14,009 $ 31,211 $ 16,194 $ 13,055 $ 29,249 Nonperforming assets to total assets 1.06 % 1.31 % 1.26 % Nonperforming loans to total assets 0.99 1.20 1.17 Nonperforming loans to total loans 1.32 1.55 1.53 Allowance for loan losses to nonperforming assets 120.92 96.49 61.67 Allowance for loan losses to nonperforming loans 130.10 105.83 66.38 Allowance for loan losses to total loans 1.72 1.64 1.02 Allowance for credit losses to total loans(4) 1.91 1.82 1.02 Year-to-date loan charge-offs $ 1,627 $ 388 $ 288 Year-to-date loan recoveries 221 120 24 Year-to-date net loan charge-offs $ 1,406 $ 268 $ 264 Annualized YTD net loan charge-offs to average loans 0.15 % 0.06 % 0.03 % (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 $2.1 million and $2.3 million are included in nonperforming loans at June 30, 2020 and March 31, 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 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. (3) Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $8.1 million , $8.7 million and $9.9 million at June 30, 2020 , March 31, 2020 and June 30, 2019 , respectively. Acquired restructured loans placed on nonaccrual totaled $2.2 million , $2.8 million and $1.9 million at June 30, 2020 , March 31, 2020 and June 30, 2019 , respectively. (4) The allowance for credit losses includes $3.6 million and $3.1 million for unfunded lending commitments at June 30, 2020 and March 31, 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-inc-announces-2020-second-quarter-results-and-declares-quarterly-dividend-301100669.html SOURCE Home Bancorp, Inc.

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