HOME BANCORP, INC. ANNOUNCES 2022 SECOND QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND

About this update from Home Bancorp, Inc.

LAFAYETTE, La. , July 26, 2022 /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 2022. For the quarter, the Company reported net income of $8.5 million , or $1.03 per diluted common share ("diluted EPS"), up $4.1 million from $4.4 million , or $0.53 diluted EPS, for the first quarter of 2022. The second and first quarters of 2022 include merger expenses, net of taxes totaling $1.3 million and $284,000 , respectively, related to the acquisition of Friendswood Capital Corporation ("Friendswood"), the former holding company of Texan Bank , N. A. (" Texan Bank ") of Houston, Texas , which was consummated on March 26, 2022 . Income pre-tax, pre-provision and pre-PPP income totaled $10.8 million , up $2.6 million , or 32%, from the prior quarter. "We are pleased to report strong earnings and loan growth throughout our footprint including growth from our most recent acquisition of Friendswood," President and Chief Executive Officer of the Company and the Bank. "The data conversion of Texan Bank's systems was successfully completed the last week of June. We are tremendously thankful to the employees who have done an outstanding job bringing together Home Bank and Texan Bank ." "Total loans increased on a reported basis from the previous quarter 3%. Excluding PPP loans, total loans increased $77.4 million , or 14% on an annualized basis of which approximately 19% was attributable to the Houston market. We are excited to see the growth opportunities in Houston and all of our markets." Second Quarter 2022 Highlights Data conversion of Texan Bank's systems completed on schedule during the last week of June. On June 30, 2022 , the Company issued $55.0 million of its 5.75% fixed-to-floating rate subordinated notes due 2032 to certain qualified institutional buyers and institutional accredited investors. Net interest income totaled $29.2 million , up $5.7 million , or 24% from the prior quarter. Excluding PPP income, net interest income totaled $28.8 million , up $6.1 million , or 27% from the prior quarter. The net interest margin ("NIM") increased 37 basis points from 3.39% for the first quarter of 2022 to 3.76%. Excluding PPP, NIM increased 42 basis points during the second quarter of 2022 to 3.73%. The Company recorded a $591,000 provision to the allowance for loan losses primarily due to loan growth, which was partially offset by continued improvement in industry economic conditions, compared to a $3.2 million provision to the allowance for loan losses in the prior quarter primarily due to the acquisition of Texan Bank . Loan income from the recognition of deferred PPP lender fees totaled $370,000 in the second quarter, down $351,000 from the prior quarter. Loans totaled $2.2 billion at June 30, 2022 , up $66.7 million , or 3%, from March 31, 2022 . Excluding PPP loans, total organic loans were up $77.4 million , or 14% annualized, from March 31, 2022 . PPP loans totaled $12.1 million at June 30, 2022 , down $10.7 million , or 47%, from March 31, 2022 . The allowance for loan losses totaled $26.0 million , or 1.17% of total loans, at June 30, 2022 . Excluding PPP loans, the ratio of allowance for loan losses to total loans was 1.18%, at such date. Investment securities totaled $482.1 million at June 30, 2022 , up $64.7 million or 16% from March 31, 2022 . Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.30% and 13.74%, respectively, at June 30, 2022 , compared to 8.67% and 12.28%, respectively, at March 31, 2022 . Loans Loans totaled $2.2 billion at June 30, 2022 , up $66.7 million , or 3%, from March 31, 2022 . PPP loans, included in commercial and industrial loans, decreased $10.7 million , or 47%, from March 31, 2022 . The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from March 31, 2022 to June 30, 2022 . (dollars in thousands) 6/30/2022 3/31/2022 Increase (Decrease) Real estate loans: One- to four-family first mortgage $ 369,410 $ 363,377 $ 6,033 2 % Home equity loans and lines 59,799 58,375 1,424 2 Commercial real estate 1,053,696 1,046,568 7,128 1 Construction and land 317,351 297,079 20,272 7 Multi-family residential 101,136 98,527 2,609 3 Total real estate loans 1,901,392 1,863,926 37,466 2 Other loans: Commercial and industrial 290,157 260,843 29,314 11 Consumer 33,106 33,200 (94) — Total other loans 323,263 294,043 29,220 10 Total loans $ 2,224,655 $ 2,157,969 $ 66,686 3 % Commercial and industrial and construction and land loans were the primary drivers for the loan growth during the second quarter of 2022. Commercial and industrial loan growth for the current quarter was primarily in the Acadiana market with the addition of new lenders with primary focus on this loan type. At June 30, 2022 , the growth in construction and land was primarily within our Houston , New Orleans , Northshore and Acadiana markets. Credit Quality and Allowance for Credit Losses Nonperforming assets ("NPAs") totaled $18.8 million , or 0.56% of total assets, at June 30, 2022 , down $3.6 million , or 16%, from $22.4 million , or 0.67% of total assets, at March 31, 2022 . During the second quarter of 2022, the Company recorded net loan charge-offs of $439,000 , compared to net recoveries of $149,000 during the first quarter of 2022. The increase in charge-offs during the current quarter was primarily due to loans acquired in the Texan Bank acquisition totaling $474,000 , which was offset with recoveries. The Company provisioned $591,000 to the allowance for loan losses in the second quarter of 2022. During the first quarter of 2022, the Company provisioned a total of $3.2 million to the allowance for loan losses primarily due to the acquisition of Texan Bank's loan portfolio. At June 30, 2022 , the allowance for loan losses totaled $26.0 million , or 1.17% of total loans, compared to $26.7 million , or 1.24% of total loans, at March 31, 2022 . Excluding PPP loans, the ratios of the allowance for loan losses to total loans were 1.18% and 1.25% at June 30, 2022 and March 31, 2022 , 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. Deposits Total deposits were $2.9 billion at June 30, 2022 , down $20.8 million , or 1%, from March 31, 2022 . The following table summarizes the changes in the Company's deposits from March 31, 2022 to June 30, 2022 . (dollars in thousands) 6/30/2022 3/31/2022 Increase (Decrease) Demand deposits $ 938,531 $ 913,137 $ 25,394 3 % Savings 316,974 315,356 1,618 1 Money market 483,951 484,847 (896) — NOW 791,692 806,501 (14,809) (2) Certificates of deposit 389,228 421,338 (32,110) (8) Total deposits $ 2,920,376 $ 2,941,179 $ (20,803) (1) % The average rate on interest-bearing deposits increased two basis points from 0.20% for the first quarter of 2022 to 0.22% for the second quarter of 2022. At June 30, 2022 , certificates of deposit maturing within the next 12 months totaled $297.0 million . Net Interest Income The net interest margin ("NIM") increased 37 basis points from 3.39% for the first quarter of 2022 to 3.76% for the second quarter of 2022 primarily due to an increase in the average yield on interest-earning assets. Loan income from the recognition of deferred PPP lender fees totaled $370,000 during the second quarter of 2022, down $351,000 , or 49%, compared to the first quarter of 2022. The average loan yield was 4.94% for the second quarter of 2022, up 6 basis points from the first quarter of 2022. During the second quarter of 2022, income from PPP loans increased the average loan yield by 3 basis points and increased the NIM by 3 basis points. During the first quarter of 2022, PPP loans positively impacted the average loan yield by 9 basis points and the NIM by 8 basis points. Average PPP loans were $15.5 million for the second quarter of 2022, down $15.9 million , or 51%, from the first quarter of 2022. Unrecognized PPP lender fees totaled $210,000 at June 30, 2022 . Average other interest-earning assets were $422.3 million for the second quarter of 2022, down $139.0 million , or 25%, from the first quarter of 2022 primarily due to a reallocation of certain other assets to partially fund the increase in investment securities. Loan accretion income from acquired loans totaled $879,000 for the second quarter of 2022, up $422,000 , or 92% from the first quarter of 2022. 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 6/30/2022 3/31/2022 (dollars in thousands) Average Balance Interest Average Yield/ Rate Average Balance Interest Average Yield/ Rate Interest-earning assets: Loans receivable $ 2,190,721 $ 27,304 4.94 % $ 1,862,616 $ 22,671 4.88 % Investment securities (TE) 475,853 2,338 1.99 359,736 1,618 1.82 Other interest-earning assets 422,265 863 0.82 561,262 277 0.20 Total interest-earning assets $ 3,088,839 $ 30,505 3.93 % $ 2,783,614 $ 24,566 3.54 % Interest-bearing liabilities: Deposits: Savings, checking, and money market $ 1,584,118 $ 673 0.17 % $ 1,461,966 $ 530 0.15 % Certificates of deposit 406,367 430 0.42 317,866 363 0.46 Total interest-bearing deposits 1,990,485 1,103 0.22 1,779,832 893 0.20 Other borrowings 6,580 54 3.26 5,539 53 3.89 FHLB advances 25,426 107 1.69 25,795 109 1.70 Total interest-bearing liabilities $ 2,022,491 $ 1,264 0.25 % $ 1,811,166 $ 1,055 0.24 % Net interest spread (TE) 3.68 % 3.30 % Net interest margin (TE) 3.76 % 3.39 % Noninterest Income Noninterest income for the second quarter of 2022 totaled $3.7 million , up $300,000 , or 9%, from the first quarter of 2022. Bank card fees were up $182,000 , or 13% from the first quarter of 2022 primarily due to increased transaction activity by our cardholders. In addition, service fees and charges were up $92,000 , or 8% from the first quarter of 2022 primarily due to deposit account service charges and overdraft fees. Noninterest Expense Noninterest expense for the second quarter of 2022 totaled $21.8 million , up $3.5 million , or 19%, from the first quarter of 2022. The increase related primarily to the growth of the Company's employee base, higher occupancy, data processing and communication and marketing and advertising costs due to the Friendswood acquisition. Noninterest expense for the second quarter of 2022 and the first quarter of 2022 include $1.6 million and $328,000 , respectively, of merger expenses related to the acquisition of Friendswood. 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 19, 2022 , to shareholders of record as of August 8, 2022 . The Company repurchased 125,499 shares of its common stock during the second quarter of 2022 at an average price per share of $40.09 . An additional 274,054 shares remain eligible for purchase under the 2021 Repurchase Plan. The book value per share and tangible book value per share of the Company's common stock was $39.44 and $28.86 , respectively, at June 30, 2022 . 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, PPP loans and certain acquisition related metrics. 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) 6/30/2022 3/31/2022 6/30/2021 Reported net income $ 8,461 $ 4,401 $ 11,396 Add: Core deposit intangible amortization, net tax 359 199 232 Non-GAAP tangible income $ 8,820 $ 4,600 $ 11,628 Reported loan income $ 27,304 $ 22,671 $ 24,500 Less: PPP loan income 402 800 2,372 Loan income excluding PPP loan income $ 26,902 $ 21,871 $ 22,128 Provision (reversal) for loan losses $ 591 $ 3,215 $ (3,425) Less: CECL impact for acquisition — 3,802 — Provision (reversal) for organic loans $ 591 $ (587) $ (3,425) Loan yield 4.94 % 4.88 % 4.95 % (Positive) negative impact of PPP loans (0.03) (0.09) 0.11 Loan yield excluding PPP loans 4.91 % 4.79 % 5.06 % Net interest margin 3.76 % 3.39 % 3.75 % (Positive) negative impact of PPP loans (0.03) (0.08) (0.04) Net interest margin excluding PPP loans 3.73 % 3.31 % 3.71 % Total assets $ 3,362,216 $ 3,332,228 $ 2,764,756 Less: Intangible assets 88,309 87,569 62,520 Non-GAAP tangible assets $ 3,273,907 $ 3,244,659 $ 2,702,236 Total shareholders' equity $ 329,124 $ 337,504 $ 337,812 Less: Intangible assets 88,309 87,569 62,520 Non-GAAP tangible shareholders' equity $ 240,815 $ 249,935 $ 275,292 Total loans $ 2,224,655 $ 2,157,969 $ 1,918,488 Less: PPP loans 12,083 19,596 197,614 Less: PPP loans from Texan 1 — 3,163 — Total loans excluding PPP loans $ 2,212,572 $ 2,135,210 $ 1,720,874 Less: Texan Bank loan portfolio, excluding PPP loans 1 — 315,744 — Organic loan portfolio $ 2,212,572 $ 1,819,466 $ 1,720,874 Reported net income $ 8,461 $ 4,401 $ 11,396 Add: Provision (reversal) for loan losses 591 3,215 (3,425) Add: Provision for credit losses on unfunded commitments — 302 375 Add: Income tax expense 2,110 1,041 2,865 Pre-tax, pre-provision income $ 11,162 $ 8,959 $ 11,211 Less: PPP income 402 800 2,372 Pre-tax, pre-provision, pre- PPP income $ 10,760 $ 8,159 $ 8,839 Allowance for loan losses to total loans 1.17 % 1.24 % 1.39 % Less: PPP loans 0.01 0.01 0.16 Non-GAAP allowance for loan losses to total loans 1.18 % 1.25 % 1.55 % Return on average equity 10.20 % 5.08 % 13.68 % Add: Average intangible assets 4.23 1.39 3.50 Non-GAAP return on average tangible common equity 14.43 % 6.47 % 17.18 % Common equity ratio 9.79 % 10.13 % 12.22 % Less: Intangible assets 2.43 2.43 2.03 Non-GAAP tangible common equity ratio 7.36 % 7.70 % 10.19 % Book value per share $ 39.44 $ 39.93 $ 38.92 Less: Intangible assets 10.58 10.36 7.20 Non-GAAP tangible book value per share $ 28.86 $ 29.57 $ 31.72 1 Fair value at the acquisition date of March 26, 2022 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, 2021 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) 6/30/2022 3/31/2022 % Change 6/30/2021 Assets Cash and cash equivalents $ 444,151 $ 548,019 (19) % $ 393,203 Interest-bearing deposits in banks 349 349 — 349 Investment securities available for sale, at fair value 480,007 415,260 16 285,185 Investment securities held to maturity 2,086 2,094 — 2,118 Mortgage loans held for sale 1,444 4,187 (66) 3,752 Loans, net of unearned income 2,224,655 2,157,969 3 1,918,488 Allowance for loan losses (26,020) (26,731) (3) (26,687) Total loans, net of allowance for loan losses 2,198,635 2,131,238 3 1,891,801 Office properties and equipment, net 43,979 43,929 — 44,232 Cash surrender value of bank-owned life insurance 40,788 40,575 1 40,781 Goodwill and core deposit intangibles 88,309 87,569 1 62,520 Accrued interest receivable and other assets 62,468 59,008 6 40,815 Total Assets $ 3,362,216 $ 3,332,228 1 $ 2,764,756 Liabilities Deposits $ 2,920,376 $ 2,941,179 (1) % $ 2,370,764 Other Borrowings 60,539 5,539 993 5,539 Federal Home Loan Bank advances 25,307 25,671 (1) 27,502 Accrued interest payable and other liabilities 26,870 22,335 20 23,139 Total Liabilities 3,033,092 2,994,724 1 2,426,944 Shareholders' Equity Common stock 84 85 (1) % 87 Additional paid-in capital 164,177 164,830 — 165,296 Common stock acquired by benefit plans (2,240) (2,332) 4 (2,604) Retained earnings 191,114 188,386 1 171,644 Accumulated other comprehensive (loss) income (24,011) (13,465) (78) 3,389 Total Shareholders' Equity 329,124 337,504 (2) 337,812 Total Liabilities and Shareholders' Equity $ 3,362,216 $ 3,332,228 1 $ 2,764,756 HOME BANCORP, INC. AND SUBSIDIARY CONDENSED STATEMENTS OF INCOME (Unaudited) Quarter Ended (dollars in thousands, except per share data) 6/30/2022 3/31/2022 % Change 6/30/2021 % Change Interest Income Loans, including fees $ 27,304 $ 22,671 20 % $ 24,500 11 % Investment securities 2,338 1,618 44 1,130 107 Other investments and deposits 863 277 212 133 549 Total interest income 30,505 24,566 24 25,763 18 Interest Expense Deposits 1,103 893 24 % 1,480 (25) % Other borrowings 54 53 2 53 2 Federal Home Loan Bank advances 107 109 (2) 120 (11) Total interest expense 1,264 1,055 20 1,653 (24) Net interest income 29,241 23,511 24 24,110 21 Provision (reversal) for loan losses 591 3,215 (82) (3,425) 117 Net interest income after provision (reversal) for loan losses 28,650 20,296 41 27,535 4 Noninterest Income Service fees and charges 1,257 1,165 8 % 1,146 10 % Bank card fees 1,636 1,454 13 1,591 3 Gain on sale of loans, net 264 299 (12) 559 (53) Income from bank-owned life insurance 213 214 — 221 (4) (Loss) gain on sale of assets, net (6) 5 (220) (457) 99 Other income 322 249 29 234 38 Total noninterest income 3,686 3,386 9 3,294 12 Noninterest Expense Compensation and benefits 12,583 10,159 24 % 9,687 30 % Occupancy 2,354 1,803 31 1,733 36 Marketing and advertising 648 407 59 268 142 Data processing and communication 2,533 2,195 15 2,159 17 Professional fees 475 542 (12) 217 119 Forms, printing and supplies 253 146 73 163 55 Franchise and shares tax 391 391 — 359 9 Regulatory fees 698 446 57 306 128 Foreclosed assets, net (10) 402 (102) 101 (110) Amortization of acquisition intangible 454 252 80 293 55 Provision for credit losses on unfunded commitments — 302 (100) 375 (100) Other expenses 1,386 1,195 16 907 53 Total noninterest expense 21,765 18,240 19 16,568 31 Income before income tax expense 10,571 5,442 94 14,261 (26) Income tax expense 2,110 1,041 103 2,865 (26) Net income $ 8,461 $ 4,401 92 $ 11,396 (26) Earnings per share - basic $ 1.04 $ 0.53 96 % $ 1.35 (23) % Earnings per share - diluted $ 1.03 $ 0.53 94 % $ 1.34 (23) % Cash dividends declared per common share $ 0.23 $ 0.23 — % $ 0.23 — % HOME BANCORP, INC. AND SUBSIDIARY SUMMARY FINANCIAL INFORMATION (Unaudited) Quarter Ended (dollars in thousands, except per share data) 6/30/2022 3/31/2022 % Change 6/30/2021 % Change EARNINGS DATA Total interest income $ 30,505 $ 24,566 24 % $ 25,763 18 % Total interest expense 1,264 1,055 20 1,653 (24) Net interest income 29,241 23,511 24 24,110 21 (Reversal) provision for loan losses 591 3,215 (82) (3,425) 117 Total noninterest income 3,686 3,386 9 3,294 12 Total noninterest expense 21,765 18,240 19 16,568 31 Income tax expense 2,110 1,041 103 2,865 (26) Net income $ 8,461 $ 4,401 92 $ 11,396 (26) AVERAGE BALANCE SHEET DATA Total assets $ 3,295,196 $ 2,977,559 11 % $ 2,741,801 20 % Total interest-earning assets 3,088,839 2,783,614 11 2,554,785 21 Total loans 2,190,721 1,862,616 18 1,963,935 12 PPP loans 15,463 31,326 (51) 228,114 (93) Total interest-bearing deposits 1,990,485 1,779,832 12 1,656,732 20 Total interest-bearing liabilities 2,022,491 1,811,166 12 1,689,970 20 Total deposits 2,906,568 2,576,378 13 2,355,315 23 Total shareholders' equity 332,640 351,337 (5) 334,092 — PER SHARE DATA Earnings per share - basic $ 1.04 $ 0.53 96 % $ 1.35 (23) % Earnings per share - diluted 1.03 0.53 94 1.34 (23) Book value at period end 39.44 39.93 (1) 38.92 1 Tangible book value at period end 28.86 29.57 (2) 31.72 (9) Shares outstanding at period end 8,344,095 8,453,014 (1) 8,678,686 (4) Weighted average shares outstanding Basic 8,129,340 8,270,209 (2) % 8,448,777 (4) % Diluted 8,185,595 8,336,561 (2) 8,499,103 (4) SELECTED RATIOS (1) Return on average assets 1.03 % 0.60 % 72 % 1.67 % (38) % Return on average equity 10.20 5.08 101 13.68 (25) Common equity ratio 9.79 10.13 (3) 12.22 (20) Efficiency ratio (2) 66.10 67.81 (3) 60.46 9 Average equity to average assets 10.09 11.80 (14) 12.19 (17) Tier 1 leverage capital ratio (3) 9.30 8.67 7 9.89 (6) Total risk-based capital ratio (3) 13.74 12.28 12 16.07 (14) Net interest margin (4) 3.76 3.39 11 3.75 — SELECTED NON-GAAP RATIOS (1) Tangible common equity ratio (5) 7.36 % 7.70 % (4) % 10.19 % (28) % Return on average tangible common equity (6) 14.43 6.47 123 17.18 (16) (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) 6/30/2022 3/31/2022 6/30/2021 (dollars in thousands) Originated Acquired Total Originated Acquired Total Originated Acquired Total CREDIT QUALITY (1) Nonaccrual loans(2) $ 5,332 $ 13,165 $ 18,497 $ 5,515 $ 15,598 $ 21,113 $ 8,279 $ 5,693 $ 13,972 Accruing loans 90 days or more past due 8 — 8 — — — 4 — 4 Total nonperforming loans 5,340 13,165 18,505 5,515 15,598 21,113 8,283 5,693 13,976 Foreclosed assets and ORE — 277 277 536 729 1,265 724 389 1,113 Total nonperforming assets 5,340 13,442 18,782 6,051 16,327 22,378 9,007 6,082 15,089 Performing troubled debt restructurings 3,939 1,063 5,002 3,797 1,100 4,897 4,117 1,103 5,220 Total nonperforming assets and troubled debt restructurings $ 9,279 $ 14,505 $ 23,784 $ 9,848 $ 17,427 $ 27,275 $ 13,124 $ 7,185 $ 20,309 Nonperforming assets to total assets 0.56 % 0.67 % 0.55 % Nonperforming loans to total assets 0.55 0.63 0.51 Nonperforming loans to total loans 0.83 0.98 0.73 (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 $5.3 million , $3.6 million and $4.1 million at June 30, 2022 , March 31, 2022 and June 30, 2021 , respectively. Acquired restructured loans placed on nonaccrual totaled $2.8 million , $3.0 million and $3.5 million at June 30, 2022 , March 31, 2022 and June 30, 2021 , respectively. HOME BANCORP, INC. AND SUBSIDIARY SUMMARY CREDIT QUALITY INFORMATION - CONTINUED (Unaudited) 6/30/2022 3/31/2022 6/30/2021 Collectively Evaluated Individually Evaluated Total Collectively Evaluated Individually Evaluated Total Collectively Evaluated Individually Evaluated Total ALLOWANCE FOR CREDIT LOSSES One- to four-family first mortgage $ 2,158 $ — $ 2,158 $ 2,056 $ — $ 2,056 $ 2,397 $ — $ 2,397 Home equity loans and lines 491 — 491 539 — 539 582 — 582 Commercial real estate 12,068 1,193 13,261 12,878 2,324 15,202 15,219 218 15,437 Construction and land 4,689 — 4,689 4,112 — 4,112 3,585 — 3,585 Multi-family residential 526 — 526 554 — 554 745 — 745 Commercial and industrial 3,654 591 4,245 3,200 440 3,640 2,790 478 3,268 Consumer 650 — 650 628 — 628 673 — 673 Total allowance for credit losses $ 24,236 $ 1,784 $ 26,020 $ 23,967 $ 2,764 $ 26,731 $ 25,991 $ 696 $ 26,687 Unfunded lending commitments(3) 2,117 — 2,117 2,117 — 2,117 1,800 — 1,800 Total allowance for credit losses $ 26,353 $ 1,784 $ 28,137 $ 26,084 $ 2,764 $ 28,848 $ 27,791 $ 696 $ 28,487 Allowance for loan losses to nonperforming assets 138.54 % 119.45 % 176.86 % Allowance for loan losses to nonperforming loans 140.61 % 126.61 % 190.95 % Allowance for loan losses to total loans 1.17 % 1.24 % 1.39 % Allowance for credit losses to total loans 1.26 % 1.34 % 1.48 % Year-to-date loan charge-offs $ 844 $ 316 $ 1,559 Year-to-date loan recoveries 554 465 411 Year-to-date net loan (charge-offs) recoveries $ 290 $ (149) $ 1,148 Annualized YTD net loan (charge-offs) recoveries to average loans 0.03 % (0.03) % 0.12 % (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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